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Speaker 1: Good morning.

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Speaker 2: It's Wenesday, the sixth of December here in London. This

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Speaker 2: is the Bloomberg Day Recurate podcast.

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Speaker 1: I'm Caroline Hepko and.

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Speaker 3: I'm Stephen Carroll coming up today. Fueling concerns, Putin heads

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Speaker 3: to Saudi Arabia as bloombergun covers how Russia is sidestepping

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Speaker 3: Western oil sanctions.

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Speaker 2: The London Stock Exchange faces tough questions after its hit

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Speaker 2: by a third outage in three months.

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Speaker 3: Plus the crypto factor Bitcoin goes on a tear to

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Speaker 3: add more than one hundred and sixty five percent since

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Speaker 3: last year's route.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 3: Vladimir Putin is visiting Saudi Arabia and the United Arab

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Speaker 3: Emirates today in a rare overseas trip since the invasion

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Speaker 3: of Ukraine. The Russian President's trip is intended to bolster

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Speaker 3: partnerships with key oil producers. The meeting comes as exclusive

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Speaker 3: reporting from Bloomberg has uncovered that Moscow's monthly income from

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Speaker 3: oil exports is greater now than before the Ukraine War.

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Speaker 3: Bloomberg's EMEA news director Ros Matheson the visit reveals a

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Speaker 3: lot about the way Putin sees his current position.

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Speaker 4: He's really not left Russia very much since he invaded

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Speaker 4: Ukraine almost two years ago. He's been to China, he's

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Speaker 4: been to some of the proophery states around Russia in

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Speaker 4: his immediate orbit, but he's not really ventured any further

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Speaker 4: than that. So simply the fact that he now feels

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Speaker 4: confident enough to travel to the UAE, to travel to

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Speaker 4: Saudi Arabia, to meet with some very very high level

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Speaker 4: officials in both countries shows perhaps a reflection of how

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Speaker 4: he's feeling at the moment about his hold on power

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Speaker 4: at home, about where he's born in Ukraine is at

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Speaker 4: and really that he's not feeling isolated on the global stage.

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Speaker 3: Ras Marthison's analysis was underlined yesterday when Sadi's energy minister

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Speaker 3: told Bloomberg that there is a high level of trust

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Speaker 3: between Riad and Moscow, arguably the key relationship in Opek plus.

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Speaker 2: Israeli leaders are vowing to continue their war to eradicate

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Speaker 2: her Mass despite serious criticism from international groups. From Minister

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Speaker 2: Benjamin Netanyahu lashed out after the UN said that there

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Speaker 2: are no longer any safe places in Gaza.

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Speaker 5: I say, to the women's rights organizations, to the human

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Speaker 5: rights organizations. You've heard of the rape of Israeli women,

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Speaker 5: horrible atrocities, sexual new relation, Where the hell are you?

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Speaker 2: Netanyahu's troops are continuing to press into the southern Gaza

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Speaker 2: city of hahn Junis. The Hamas run health ministry says

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Speaker 2: that one thousand people have died since the truce ended,

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Speaker 2: bringing their Galza death toll to sixteen thousand.

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Speaker 3: Bloomberg has learned that tariffs on electric vehicles traded between

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Speaker 3: the EU and the UK could be delayed by three years.

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Speaker 3: The possible deal would offer some breathing space for an

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Speaker 3: industry that's facing increasing competition from Chinese rivals on both

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Speaker 3: sides of the channel. With morey, here's Boomberg's Ewan parts.

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Speaker 6: Under the current Brexit deal, electric vehicles moving between the

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Speaker 6: UK and European Union are set to be hit with

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Speaker 6: a ten percent duty for less than forty five percent

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Speaker 6: of their value comes from the region. The measure is

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Speaker 6: due to kick in on the first of January, but

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Speaker 6: carmakers the UK and the vast majority of EU member

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Speaker 6: states have been pushing for a delay so that European

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Speaker 6: battery production can be ramped up. The UK's auto trade

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Speaker 6: lobbies also warn the tariffs without around three and a

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Speaker 6: half thousand pounds to the price of EU built vehicles

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Speaker 6: in the UK and a similar amount to British built

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Speaker 6: vehicles in the EU. The recommendation of a three year

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Speaker 6: delay is subject to approval by the UK government and

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Speaker 6: EU member states. In London, New and Pots Bloomberg Radio.

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Speaker 2: The London Stock Exchange has suffered its third outage in

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Speaker 2: as many months. Trading in two thousand smaller shares was

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Speaker 2: halted twice yesterday due to a hardware failure. The string

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Speaker 2: of lapses served as an embarrassment to the Bourse, which

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Speaker 2: says that trading will open as normal later.

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Speaker 3: Bank of America's CEO believes there are signs of the

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Speaker 3: US economy slowing, but as firm still expects a soft

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Speaker 3: landing rather than a recession. Speaking at the Goldman Sachs

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Speaker 3: US Financial Services Conference, Brian moynihan said US consumers have

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Speaker 3: been pulling back on spending.

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Speaker 7: The reality is it's going to be a slowdown, but

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Speaker 7: we have it as been positive. The way customers are

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Speaker 7: spending their money is leveled out. In other words, there's

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Speaker 7: not this good service, this massive change, So some things

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Speaker 7: are growing faster, but it's leveled out, meaning that all

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Speaker 7: the category to kind of grow on plus or minus

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Speaker 7: the average, and so that's all good news that the economies normalized.

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Speaker 3: In a wide ranging conversation, moynahan also said that Bank

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Speaker 3: of America's sales and trading unit is on track to

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Speaker 3: be up in the low single digits in the final

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Speaker 3: three months of the year.

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Speaker 2: Govin Sachs says that despite slumping profits, it still expects

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Speaker 2: compensation costs to rise this year after complaints about pay

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Speaker 2: last year. Speaking out of the Wall Street Jants Conference,

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Speaker 2: chief financial Officer Dennis Coleman said that the bank will

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Speaker 2: continue to pay based on performance of its businesses.

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Speaker 8: On the comp side, our perspective will remain very much

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Speaker 8: pay for performance, but recognizing the performance of some of

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Speaker 8: those businesses, I would say on a common benefit expense

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Speaker 8: basis and expect us to be upload of single digits

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Speaker 8: for the full year.

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Speaker 2: Coleman estimated that fourth quarter trading revenue will be flat

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Speaker 2: relative to the prior year, while deal making fees have

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Speaker 2: been muted. In twenty twenty three, Goldman's CEO says that

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Speaker 2: next year's outlook is more promising.

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Speaker 3: Bitcoin is briefly traded about forty four thousand dollars in

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Speaker 3: a move one analyst described as a jet fueled six

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Speaker 3: day jump. The sixteen percent surge comes as investors i

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Speaker 3: the US allowing exchange traded funds for the cryptocurrency and

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Speaker 3: loser fed policy. John Rue, the president of Ava Lab,

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Speaker 3: says he expects to see further rises in the value

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Speaker 3: of the token.

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Speaker 9: Macro conditions or the perception of it, has changed, the

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Speaker 9: anticipation of a ton of liquidity with the ETFs coming

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Speaker 9: into the space, But I think people now realize that

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Speaker 9: the fundamentals where real business use cases are actually happening,

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Speaker 9: and there are many, many traditional companies, whether it's in

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Speaker 9: finance or traditional consumer marketing companies, applying the technology for

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Speaker 9: real business use case.

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Speaker 3: John Well speaking to Bloomberg there bitcoins rebound from last

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Speaker 3: year's crypto route now stands at one hundred and sixty

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Speaker 3: five percent. Even with the bounds, the value was still

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Speaker 3: some way short of the almost sixty nine thousand per

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Speaker 3: token hit in twenty twenty one. Now, in a moment,

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Speaker 3: we'll be getting more details on the outages at London

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Speaker 3: Stock Exchange yesterday, But first, a great piece from our

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Speaker 3: colleague Katie Donalds and r UK political editor and her

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Speaker 3: team about how even from the jungle, Nigel Farage is

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Speaker 3: influencing in events in Westminster. Of course, not frash taking

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Speaker 3: part in the reality TV show I'm a celebrity at

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Speaker 3: the moment. But this is a great analysis of how

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Speaker 3: the Tory Party has been trying to keep the right

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Speaker 3: wing in check. A lot of the focus on the

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Speaker 3: immigration policy is seen as pandering to their particular concerns

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Speaker 3: on that issue. This, of course is James Cleverty's been

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Speaker 3: a real just signing that new deportation treaty as well.

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Speaker 3: And what we're looking at in this piece is in

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Speaker 3: fact how Nigel Ferraj and the Reform Party that he

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Speaker 3: founded but doesn't leave Reform UK could influence policy ahead

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Speaker 3: of the next election as well, and how internally in

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Speaker 3: the Tory Party people are viewing the strength or the

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Speaker 3: need to perhaps bring that party closer.

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Speaker 2: Yeah, I mean, is it to do with the week economy,

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Speaker 2: the cost of living crisis that there is a concern

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Speaker 2: about sort of immigrating, about voters perhaps moving more to

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Speaker 2: the right.

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Speaker 1: Nigel Farage is a household name.

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Speaker 2: I mean, I wasn't their addressers the other day they

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Speaker 2: were talking about I'm a celebrity and Nigel Farage. So

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Speaker 2: he is a well known quantity. Richard Tice, who leads

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Speaker 2: Reform UK, we've interviewed in the past. He's perhaps less

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Speaker 2: well known, but you've seen over the last couple of

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Speaker 2: years the Farage influence. He was in the front row,

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Speaker 2: for example, listening to the Liz Trust speech at the

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Speaker 2: party conference only a few months ago. So yeah, it's

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Speaker 2: a fascinating piece. And perhaps even the win of Wilder's

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Speaker 2: in the Netherlands, you know, brings that to the foe too.

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Speaker 2: About right wing, more right wing leading parties in Europe.

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Speaker 3: They're very interesting to consider as we look ahead to

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Speaker 3: the next election in the UK. But let's turn now

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Speaker 3: to events in the Gulf and the trip of Vladimir

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Speaker 3: Putin there today a rare trip abroad for the Russian leader,

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Speaker 3: census invasion of Ukraine. He's going to meet leaders from

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Speaker 3: Saudi Arabia and the UAE later on, with talks expected

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Speaker 3: to focus on areas including the oil market. Our senior

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Speaker 3: executive editor for Energy and Commodities, Will Kennedy joins us

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Speaker 3: now for more. Well, what is Vladimir putin trying to

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Speaker 3: achieve with this trip.

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Speaker 10: I think he's trying to first and foremost show that

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Speaker 10: he is not a Proviya, that there are important states

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Speaker 10: that are happy to see him, that he's able to

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Speaker 10: leave Russia, and he remains a force on the global stage.

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Speaker 10: More specifically, I think the relationship between Russia, the ua

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Speaker 10: A and Saudi Arabia when it comes to oil is

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Speaker 10: increasingly important. They're the most important players in the OPEC

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Speaker 10: plus Alliant. They have struggled to really shore up oil

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Speaker 10: prices after announcing a cut in production last week, and

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Speaker 10: I think they want to talk about where that stands

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Speaker 10: and you know what strategy might be going into next year.

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Speaker 2: Well, we were listening to your interview with the Saudi

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Speaker 2: Arabia energy minister only yesterday about his relationship with Russia

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Speaker 2: in OPEK plus. Are they close allies on energy issues?

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Speaker 1: What are their perspectives?

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Speaker 10: I think the big picture is that the Yesay are

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Speaker 10: close allies on oil. That relationship has lasted over the years,

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Speaker 10: with one very significant hiccup in early twenty twenty when

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Speaker 10: they found themselves in a price war just as the

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Speaker 10: pandemic was engulfing the global economy. But since then they

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Speaker 10: put their alliance back together. They are keen to show

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Speaker 10: that they're close. I think politically it's a real source

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Speaker 10: of power as a key relationship for the two countries,

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Speaker 10: but there are tensions within it, and I think what

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Speaker 10: was revealing in my conversation with Prince adel Disease earlier

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Speaker 10: this week is that the Saudis are keen to show

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Speaker 10: the world that they trust Russia to stick with the

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Speaker 10: OPEC plus plan to meet their targets, and that they're

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Speaker 10: asking Russia to be more transparent about the fact that

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Speaker 10: they are meeting their obligations to curb exports, and their

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Speaker 10: curb of exports will be deepened in the first year.

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Speaker 10: So it's an important time for Putin to come and

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Speaker 10: cementis relationship with Muhammad bin Salman, the Crown Prince of

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Speaker 10: Saudi Arabia, and Muhammad been Zioned, the leader of the UAE.

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Speaker 3: Interesting to see that cooperation on the oil front. But

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Speaker 3: what about the Gulf States position on Russia's invasion of Ukraine.

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Speaker 10: I mean, I think on the whole they've tried to

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Speaker 10: stay out of that argument. They've tried to not take

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Speaker 10: sides and see it as a largely European matter. The UAE,

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Speaker 10: of course, has become somewhere that many Russians since the

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Speaker 10: war have come to live to do business. We publish

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Speaker 10: a story today in fact about how the UAE has

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Speaker 10: become a center for many oil traders who are trading

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Speaker 10: Russian oil and trying to do that outside the price

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Speaker 10: cap mechanism that the West has put in place to

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Speaker 10: attempt not very well right now, but to attempt to

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Speaker 10: curb Russian oil revenues. So there is that aspect to it,

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Speaker 10: as well as an important business relationship, and the UAE

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Speaker 10: especially is an important conduit for Russia to the outside

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Speaker 10: world as it finds traditional places like London increasingly close

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Speaker 10: to them.

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Speaker 2: Although he's going to Avidabe, Peter is not going to

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Speaker 2: be attending the cop twenty eight climate summit in Dubai.

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Speaker 2: It's that significant, surely.

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Speaker 10: Well, we don't. We don't think he's going to turn up.

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Speaker 10: He won't be far away though, and I think he

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Speaker 10: will cast a shadow. Russia is not Russia has a

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Speaker 10: net zero target, but of course it is one of

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Speaker 10: the world's biggest producers of hy hydrocarbons, both oil and gas,

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Speaker 10: and a big coal producer. It isn't it's fair to say,

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Speaker 10: being a huge force at these climate talks, although they

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Speaker 10: do back the expansion of nuclear power, for example. I

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Speaker 10: think what's interesting though, is that obviously COP twenty eight

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Speaker 10: is a big diplomatic centerpiece for the UAE, and I

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Speaker 10: find it interesting that they're willing to welcome Putin during

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Speaker 10: that COP twenty eight negotiation and talk about oil.

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Speaker 3: Okay, and we will watch that very closely as well.

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Speaker 3: Will Kennedy, our senior executive editor for Energy and Commodities,

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Speaker 3: thank you very much for joining us with the latest

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Speaker 3: on that journey by Vladimir Putin.

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Speaker 2: Now to the London Stock Exchange, which it suffered its

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Speaker 2: third outage in as many months only yesterday. The halts

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Speaker 2: in trading affected small cap stocks, but the frequency of

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Speaker 2: the failures is causing some concern. Bloomberg ex James Orcock

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Speaker 2: joins us now for more. What exactly do we know

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Speaker 2: about what happened yesterday?

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Speaker 11: Well, we know that about nine thirty am yesterday a

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Speaker 11: disc ray, which is like a big rate of all

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Speaker 11: these kind of hard drives, failed, which basically meant that

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Speaker 11: when trees were putting in their orders, they weren't coming

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Speaker 11: back out their end. That then leads to a halt

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Speaker 11: in the exchange, and that stopped companies that asos fever Tree,

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Speaker 11: you go companies that you will know, the small caps,

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Speaker 11: but not crucially the footy one hundred at the footy

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Speaker 11: two fifty from trading. That then resumed at ten seventeen.

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Speaker 11: Then there was a second error error in the same

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Speaker 11: sort of deck of disc arrays which led to another halt.

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Speaker 11: Now the double hot is quite rare normally, that's normally

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Speaker 11: only a marketing It rarely happens for technical issues, so

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Speaker 11: it is one that is going to have a few

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Speaker 11: trade of scratching their heads. But really the problem here, Caroline,

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Speaker 11: is that this is third time in three months. These

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Speaker 11: kinds of issues are normally very rare. You've got to

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Speaker 11: go back to twenty nineteen and then twenty eleven to

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Speaker 11: find parallels. So the real problem for the LC as

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Speaker 11: they wake up this morning is if this happens again

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Speaker 11: quite soon, there are going to be regulatory issues and

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Speaker 11: they are going to be investors worried about trading. The

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Speaker 11: FCA have said they are in contact with the boss

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Speaker 11: this morning. Technical issues happen, it is the amount of

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Speaker 11: them that are coming that is going to become the

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Speaker 11: problem here.

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Speaker 3: Do we have any ideas to what's leading to this

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Speaker 3: series of failures at the LC Well, I mean.

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Speaker 11: This is a bit one oh one for some of

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Speaker 11: the traders listening in Stephen, But how this works. It's

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Speaker 11: just thirty years ago this was all done in person

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Speaker 11: and nowadays what happens is traders put in their orders

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Speaker 11: that goes into what's called a logic engine, which basically

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Speaker 11: matches it. If I'm selling something for say ten pounds,

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Speaker 11: and that's the price I'll take as someone says I

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Speaker 11: want to buy it for ten pounds, that's then matched.

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Speaker 11: That then is then given out as data and then

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Speaker 11: that's how trades happen. Now, when this happened went wrong

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Speaker 11: in October nineteenth, there was an error in the software.

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Speaker 11: The LSC would want each other this morning that yesterday's

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Speaker 11: issue was hardware, but it is both happening this in

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Speaker 11: the small caps part of the organization, so it's the

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Speaker 11: same area that is having these issues. So we know

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Speaker 11: it has issues with this specific bit, but we don't

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Speaker 11: quite know if they are related.

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Speaker 1: Yeah, this is as juda hogart.

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Speaker 2: The LSE lead is really trying to put you know

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Speaker 2: British stocks and investing in the UK, you know on

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Speaker 2: the forefront. So does this have a wider impact.

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Speaker 11: Well, the thing that really puts this in perspective, Caron

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Speaker 11: is if you compare this to twenty seventeen, the LLC

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Speaker 11: now gets under three percent of its revenue from trading

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Speaker 11: at cash equities. That was fifteen percent. So you look

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Speaker 11: at the acquisition of Refinitive in twenty nineteen. This is

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Speaker 11: a company that is turning to financial data as a

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Speaker 11: lot of exchanges are around the world. So the question

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Speaker 11: we have to ask this morning is as it puts

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Speaker 11: itself in sort of to more of a data mindset,

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Speaker 11: is this a change in priorities for the company? I mean,

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Speaker 11: I will add a brief disclaimer that move is something

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Speaker 11: that sort of puts it in complished with companies like Bloomberg,

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Speaker 11: But can it then balance the issues around maintaining a

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Speaker 11: large equity cash training system as well.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all

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Speaker 3: on Bloomberg Daybreak Europe