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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the.

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Speaker 3: Bloomberg Debate Q podcast. Good morning, It's Friday, the eighth

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Speaker 3: of August in London. I'm Caroline Hepcare.

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Speaker 1: And I'm Stephen Carroll.

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Speaker 4: Coming up today, Israel's security Cabinet votes to take over

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Speaker 4: Gaza City, in a further escalation aimed at toppling Hamas

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Speaker 4: in the devastated Palestinian territory.

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Speaker 3: White House Economic Advisor Stephen Myron is nominated by the

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Speaker 3: US President to fill the empty FED seat.

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Speaker 4: Plus Bloomberg analysis finds playing by the rules costs Wall

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Speaker 4: Street an extra fifty one million hours of work.

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Speaker 3: Let's start with the roundup of our top stories.

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Speaker 4: Israel's security Cabinet has approved a plan to seize Gaza

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Speaker 4: City despite increasing international isolation. The plan involves stepping up

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Speaker 4: military operations in the territory's biggest city in what Israel's

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Speaker 4: government sees as a final push to defeat he Mass

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Speaker 4: and rescue the country's hostages.

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Speaker 1: Speaking to News before the vote.

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Speaker 4: On the plan, Prime Minister Benjamin Nettannie, who said Israel

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Speaker 4: doesn't want to keep control of Gaza.

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Speaker 2: We don't want to keep it. We want to have

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Speaker 2: a security perimeter. We don't want to govern it. We

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Speaker 2: don't want to either as a governing body. We want

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Speaker 2: to hand it over to our forces that will govern

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Speaker 2: it properly without threatening us and giving Ghazans a good life.

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Speaker 2: That's not possible to.

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Speaker 4: Come us Natanya, who's military already controls some seventy five

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Speaker 4: percent of Gaza, having displaced hundreds of thousands of Palestinians

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Speaker 4: whose homes have been reduced to ruins. The Israeli Prime

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Speaker 4: Minister has not articulated a clear post war vision for

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Speaker 4: the territory. In his face calls by far right coalition

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Speaker 4: partners to annex and depopulate the strip, but moving troops

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Speaker 4: and tanks into Gaza City, home to as many as

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Speaker 4: one million civilians, pits Natania who against the views of

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Speaker 4: most Israelis.

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Speaker 3: The escalation comes as Israel risks becoming a global pariah

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Speaker 3: over the spiraling humanitarian crisis in Gaza. Dozens of national

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Speaker 3: governments have spoken out about worsening starvation in the territory.

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Speaker 3: The UN Security General spokesperson Phara n Huk has warned

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Speaker 3: Israel risks worsening suffering in Gaza.

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Speaker 5: We've already made clear uh. The the fact that that occupy,

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Speaker 5: that the occupation of the occupied territories cannot, cannot and

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Speaker 5: must not continue. It is not uh, it is not

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Speaker 5: accepted under international law. Regarding regarding the comments, we'll have

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Speaker 5: to see what actions the government takes and we will

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Speaker 5: respond accordingly. But we've already made clear our concerns that

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Speaker 5: any expansion of the conflict will be catastrophic.

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Speaker 3: Pharan Hawk, UN Safety General spokesperson speaking there. The US

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Speaker 3: Ambassador to Israel, Mike Huckabee, earlier this week said that

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Speaker 3: America back to Israel to make what he described as

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Speaker 3: tough decisions.

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Speaker 4: The chair of the White House Council of Economic Advisor,

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Speaker 4: Stephen Myron, has been none DoD to replace Adrianna Kugler

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Speaker 4: on the Federal Reserves Board of Governors. The US President

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Speaker 4: Donald Trump nominated Myron to fill the job until the

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Speaker 4: term ends in January. Speaking to Bloomberg ahead of the announcement,

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Speaker 4: Myron said he wasn't expecting the White House's trade policies

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Speaker 4: to affect inflation.

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Speaker 6: We've been running higher terriffs in this administration since the

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Speaker 6: very first day, since January twentieth. We've now got several

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Speaker 6: months of data, and again there's just zero macroeconomically significant

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Speaker 6: evidence of price pressures from tariffs.

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Speaker 4: Myron's comments suggests the appointment may add the central banks

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Speaker 4: already Duvish Tilt. His temporary posting lasts until January and

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Speaker 4: gives the US president more time to consider who will

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Speaker 4: be his next FED chair.

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Speaker 3: President Donald Trump says that he would be willing to

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Speaker 3: meet with Vladimir Putin even if the Russian leader hadn't

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Speaker 3: agreed to sit down with Vladimir Zelinski. The US and

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Speaker 3: Russia have agreed on a venue for a meeting between

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Speaker 3: their leaders as President Trump tries to force an end

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Speaker 3: to the war in Ukraine. The US President was asked

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Speaker 3: by reporters in the Oval Office if the meeting meant

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Speaker 3: that he wouldn't penalize Russia for missing a US deadline

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Speaker 3: of reaching an agreement.

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Speaker 2: Is your deadline still standing for Vladimir Putin to agree

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Speaker 2: with ceasefire tomorrow or is that fluid?

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Speaker 7: Now it's going to be up to him.

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Speaker 8: We're going to see what he has to say, which

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Speaker 8: is going to be up to him.

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Speaker 2: Very disappointed.

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Speaker 3: President Trumps, the White House has considered a range of

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Speaker 3: options to put pressure on Russia, including secondary sanctions, but

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Speaker 3: President Trump has always growing frustration over Putin's refusal to

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Speaker 3: accept to cease fire.

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Speaker 4: Tokyo's top trade negotiator, Ryose Akazawa has said the US

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Speaker 4: confirmed it would end the stacking of universal tariffs on

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Speaker 4: Japan and cut car levies as promised. His comments followed

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Speaker 4: toks in Washington to clarify details of last month's trade

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Speaker 4: deal reached between the two countries that included a fifteen

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Speaker 4: percent tariff being applied to existing levees on Japanese products.

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Speaker 4: Erica yoki Yama, Bloomberg's Economy and Government Reporter reports from Tokyo.

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Speaker 9: Other pending issues is that Japan has been saying that

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Speaker 9: US agreed to lure the car talif and autopad tarifs

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Speaker 9: to fifteen percent, which are a bulsky exports for Japan,

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Speaker 9: but it's still unclear when the US will make these

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Speaker 9: changes well.

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Speaker 4: Erica Yokiyama, speaking as Akezawa, said US officials expressed regret

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Speaker 4: the stacking rule had been applied to Japan despite a

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Speaker 4: verbal agreement. He added that Washington said it would refund

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Speaker 4: any overpaid levies, though it didn't provide a time frame.

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Speaker 1: For doing so.

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Speaker 3: The Bank of England has cut interest rates to a

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Speaker 3: two year low after an unprecedented revote so in the end,

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Speaker 3: the Monetary Policy Committee voted five to four in favor

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Speaker 3: of reducing rates to four percent after a deadlock forced

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Speaker 3: a second round of voting. Bank of England Governor Andrew

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Speaker 3: Bailey says the decision required careful consideration.

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Speaker 7: We've actually never had to be in this situation of

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Speaker 7: having to have two votes to produce the majority. Absolutely fine,

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Speaker 7: we can do that, not difficult. But again I think

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Speaker 7: it's a reflection of just how finally balanced the situation.

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Speaker 7: So my message to market says that this is a

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Speaker 7: very finely balanced situation.

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Speaker 3: The Bank of England is Andrew Bailey speaking. Their money

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Speaker 3: markets reduced wages on the extent of rate cuts after

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Speaker 3: that news, with the chances of a further rate cut

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Speaker 3: in November now seen as less than fifty to fifty.

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Speaker 4: Well open AI is rolling out a new artificial intelligence

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Speaker 4: model called GPT five as advised to stay ahead of

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Speaker 4: rivals in the United States and China. The technology is

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Speaker 4: designed to be more capable of coding, creative writing, and

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Speaker 4: reasoning through complex queries, helping AICEO Sam Moldman called the

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Speaker 4: new model a major upgrade. He told reporters that for

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Speaker 4: the first time, it really feels like talking to an

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Speaker 4: expert in any topic. Opening AI's chief operating after Brad

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Speaker 4: Leikap will be speaking exclusively to Bloomberg's Caroline Hyde later today.

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Speaker 3: Those are our top stories. Let's take you through the markets.

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Speaker 3: So stocks in Asia are rising. They're being led higher

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Speaker 3: by Japanese equities, the NIK two two five surging two

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Speaker 3: percent after that relief over US tariff rates. The other

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Speaker 3: major story is that gold futures have started to diverge

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Speaker 3: quite dramatically between New York and the sport price in

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Speaker 3: London because of the possibility of a surprise tariff on

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Speaker 3: gold imports into the US. This is a story in

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Speaker 3: the FT, but it has moved markets, it would seem

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Speaker 3: in terms of other stories that we're thinking about. So

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Speaker 3: stop futures. This morning, U stock sifty futures are up

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Speaker 3: by three tents of one cent s and P five

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Speaker 3: hundred evenlies up two tenths. Oil heading for its worst

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Speaker 3: weekly loss since June, with Russian energy supplies also in focus.

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Speaker 4: In a moment, we'll bring you the latest on Israel

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Speaker 4: and Gaza, plus how Bloomberg has calculated the time Wall

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Speaker 4: Street firms or and in complying with post crisis financial rules.

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Speaker 4: But another story that we've been reading this morning.

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Speaker 1: Do you know any Henry's high earners not rich yet?

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Speaker 4: Well, now he's got a French cousin called Nicola Wingbok

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Speaker 4: opinion columns. Leonella Rand's been writing about this. It's a

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Speaker 4: social media meme that's been attracted a lot of attention

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Speaker 4: in France. The meme is Nicola pays So. Nicola is

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Speaker 4: a forty something French working a steady job, feeling utterly

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Speaker 4: quote unquote by Lionelle screwed. He sees older generations with

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Speaker 4: pensions that he'll never have, pays high taxes to a

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Speaker 4: state whose handouts he doesn't get, and now he's being

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Speaker 4: told he'll have to work for less to fix a

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Speaker 4: hole in the public finances as well.

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Speaker 1: Now, Leonel writes that Nicola's is.

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Speaker 4: Potentially cruder or more populist than his English or American counterparts,

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Speaker 4: but with very tongue in cheek, Lionel writes Nicola is

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Speaker 4: also a little whinier, given that France is a terrible

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Speaker 4: place to be, and one suspects that Nicola is out

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Speaker 4: of the office at August. But look, it's despite the

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Speaker 4: fact that many are saying this is a trojan horse

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Speaker 4: for the far right, it's I mean, the politicians in

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Speaker 4: France do need to worry about with the eyes and

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Speaker 4: the next election as well, that people are feeling worse

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Speaker 4: off those who are high earners and working and contributing

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Speaker 4: but not necessarily fitling the benefits of what they're paying

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Speaker 4: their taxes for. Could that be something that brings a

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Speaker 4: populous candidates these in twenty twenty seven, So funny meme

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Speaker 4: on the internet, something that perhaps politicians should be taking seriously.

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Speaker 2: Yeah.

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Speaker 3: Absolutely, Look, this is a developed world issue, isn't it.

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Speaker 3: The fact that wages have stagnated for so many years

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Speaker 3: means that a lot of people who might not otherwise

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Speaker 3: feel the pressure actually kind of doom. I mean, I

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Speaker 3: wonder whether the house price issue is the same in

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Speaker 3: Paris as it is in London in the UK.

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Speaker 4: When Nicol also points out that, you know, Parisia, Nikola

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Speaker 4: has his health insurance, he's got schools from walking distance,

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Speaker 4: he's got access to Chaldker tax credits. For people in

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Speaker 4: London who are looking very jealously at the situation that

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Speaker 4: this parody, I suppose is. But it's very interesting read

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Speaker 4: about taking the temperature on where france public opinion is

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Speaker 4: and one of the questions it's being asked as we're

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Speaker 4: thinking about the long road to that next election.

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Speaker 3: Now let's move on. Let's bring up to date with

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Speaker 3: events in the Middle East. Israel's security Cabinet has approved

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Speaker 3: a military takeover of Gaza City, marking an escalation of

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Speaker 3: a conflict that has already devastated the Palestinian territory. Our

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Speaker 3: head of Middle East and North Africa coverage to at Livingston.

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Speaker 3: Wallace joins us now for more. Good morning, Stuart. How

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Speaker 3: significant then, is this decision by the Israeli security cabinet?

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Speaker 3: What will it actually mean in practical terms?

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Speaker 10: Very significant. I mean it's been a fairly slow build

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Speaker 10: up to it in the sense that you know, there

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Speaker 10: were first reports about this happening earlier in the week,

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Speaker 10: and the security cabinet I think was originally supposed to

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Speaker 10: meet on Tuesday that got delayed. Now this is speculation

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Speaker 10: on my part, but I think it's fair to say

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Speaker 10: that there was probably delayed for just trying to get

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Speaker 10: some sort of consensus on what this plan should look like,

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Speaker 10: and the final plan has approved last night. Does fall

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Speaker 10: somewhat short of what had been spoken about earlier in

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Speaker 10: the week, which was a complete takeover of Gaza. I mean,

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Speaker 10: this is pretty close to that, but it's not quite there.

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Speaker 10: So in practical terms, it means a great deal more

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Speaker 10: conscripts are going to have to be drafted up.

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Speaker 1: That's going to.

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Speaker 10: Take a couple of weeks, and you're going to have

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Speaker 10: something like six divisions of the army involved in this

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Speaker 10: particular operation which is going to be focused around Gaza City.

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Speaker 1: Does this move have public support in Israel?

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Speaker 10: No, and a long way from it, I mean by

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Speaker 10: a wide margin. There is opposition to escalating the conflict,

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Speaker 10: which has been going on for something like twenty two

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Speaker 10: months now. A lot of that is centered around, I

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Speaker 10: think deep concern that if the IDEF expands its operations

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Speaker 10: into Gaza City that potentially puts the lives of the

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Speaker 10: remaining hostages in Gaza at risk, and we think there's

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Speaker 10: something like he left alive something of that order, So

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Speaker 10: that I think is the deepest concern, and then again

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Speaker 10: that there is no real clear post war plan so Nettayahu,

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Speaker 10: the Israeli Prime Minister, has spoken about handing over Gaza

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Speaker 10: at some point to an Arab led civil administration that

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Speaker 10: will not include her Mass, that will not include the

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Speaker 10: Palestinian authority. But quite what that might look like no

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Speaker 10: one really knows.

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Speaker 3: Does Israel have the support of the US. How is

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Speaker 3: this decision going to be received amongst Israel's allies, neighbors

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Speaker 3: and others who are concerned about the humanitarian tool in

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Speaker 3: Gaza too.

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Speaker 10: So, I mean it's a little early to have a reaction,

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Speaker 10: I think, particularly from the Arab world and then further afield.

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Speaker 10: But we would anticipate that coming later today, and I

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Speaker 10: think everyone would be very surprised if it was any

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Speaker 10: different to the comments we've already had, some of which

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Speaker 10: you've played on the show in the run up to

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Speaker 10: this decision by the Security Cabinet. In terms of the

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Speaker 10: US position, that's an interesting one. I mean, we had

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Speaker 10: an interview with Mike Huckabee, the US Ambassador to Israel,

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Speaker 10: a couple of days years ago, and his broad line

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Speaker 10: was that the US would support Israel in whatever tough

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Speaker 10: decisions it had to make. So it was not entirely

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Speaker 10: explicit in terms of an unequivocal support for a specific decision,

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Speaker 10: but it was clear that the US was not necessarily

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Speaker 10: going to oppose it. And I think in terms of

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Speaker 10: the international reaction, potential action at the Security Council, at

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Speaker 10: the UN and so on, that is quite telling because

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Speaker 10: of course they can veto any decision that is made there.

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Speaker 4: Okay, starret living Son walas ahead of our Middle East

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Speaker 4: and North Africa coverage.

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Speaker 1: Thank you.

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Speaker 3: Now, new data compiled by Bloomberg shows that rules put

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Speaker 3: in place by US regulators after the global financial crisis

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Speaker 3: have created fifty one million work hours per year. It

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Speaker 3: is a timely assessment of the workloads as regulators are

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Speaker 3: now considering which rules to keep and which to scrap.

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Speaker 3: Our senior finance reporter at Laura Noonan joined us. Now

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Speaker 3: more on this story. Can you tell us a bit

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Speaker 3: more about then, how you arrived at this now, bo

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Speaker 3: in the global financial crisis is quite some time ago.

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Speaker 3: Now why did you go looking for the figure?

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Speaker 1: Also?

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Speaker 8: I guess, Hi, Karen, thank you for having me on

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Speaker 8: this morning because I guess to bring you back.

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Speaker 7: We talk a lot.

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Speaker 8: We've been talking a lot about the regulation heading into

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Speaker 8: this year. And the turn of the cycle, and a

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Speaker 8: lot of the conversation has focused around things like capital

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Speaker 8: and the extra money banks in particular require to hold.

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Speaker 8: What we wanted to do was taken more holistic, look

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Speaker 8: at it and say, okay, there's capital, but there's also

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Speaker 8: a ton more rules to follows, a lot more admin

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Speaker 8: So we decided to go back and try to add

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Speaker 8: up how much that extra burden was. We looked at

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Speaker 8: it a number of different ways. It was very difficult,

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Speaker 8: but in the end we found disclosures which actually, at

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Speaker 8: the point of rule is created, it has to estimate

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Speaker 8: how much paperwork it adds on for the industry affected.

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Speaker 8: So we added up a lot of those over time,

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Speaker 8: and we came to a figure of fifty one million

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Speaker 8: hours per year across the US financial industry. The reason

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Speaker 8: it's relevant now is because we're talking about peeling back

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Speaker 8: a lot of those rules, and people who are looking

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Speaker 8: at banks, they analysts, investors are thinking about, Okay, if

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Speaker 8: these rules get peeled back, here, what is the prize.

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Speaker 8: Part of the prize is say, for banks they have

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Speaker 8: to hold let's capital, But part of the prize is

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Speaker 8: also that some of this work should over time fade

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Speaker 8: away and there will be cost savings to that.

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Speaker 1: Laura, how does this feed into the regulatory debate now? So,

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Speaker 1: I think at.

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Speaker 8: The moment there there are common periods open in the

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Speaker 8: US where the regulators are looking for a feedback on

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Speaker 8: which rules they should be looking to take away, which

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Speaker 8: rules don't work very well anymore, and we can expect

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Speaker 8: to see that some of the rules which have been

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Speaker 8: the most burdensome are likely to feature there. There's also

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Speaker 8: some rules which the SEC in particularly the Securacy and

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Speaker 8: Exchange Commission, is already getting pushed back on because it

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Speaker 8: just imposed us such a high level of burden on

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Speaker 8: the firms actually doing this work. And one of the

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Speaker 8: other things firms that really struggle with is because in

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Speaker 8: the US there are a lot different regular agencies, And

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Speaker 8: in this piece we have Jamie Diamond's famous spaghetti char

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Speaker 8: showing all the different ones, and they feel like burns

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Speaker 8: are heaped upon burns so that they end up doing

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Speaker 8: the same thing in a slightly different way for lots

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Speaker 8: of different agencies, and that just adds to inefficiency. And

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Speaker 8: I think one of the other things that's really happening

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Speaker 8: in the US is, aside from deregulation, which we can

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Speaker 8: have any views on. There is a real effort to

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Speaker 8: try to streamline regulation and make it more efficient, and

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Speaker 8: I think some of these things, when you look at them,

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Speaker 8: they're not very efficient.

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Speaker 4: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 1: I'm Caroline Hipka and I'm Stephen Carroll.

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Speaker 4: Join us again tomorrow morning for all the news you

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Speaker 5: M