1 00:00:00,240 --> 00:00:07,680 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:10,560 --> 00:00:13,400 Speaker 2: This is Bloomberg Daybreak Weekend, our global look at the 3 00:00:13,400 --> 00:00:15,920 Speaker 2: top stories in the coming week from our Daybreak anchors 4 00:00:16,040 --> 00:00:18,599 Speaker 2: all around the world. Straight Ahead on the program, we 5 00:00:18,640 --> 00:00:21,160 Speaker 2: look ahead to the Last of the mag seven earnings 6 00:00:21,160 --> 00:00:25,360 Speaker 2: with Chip Giant and video reporting. I'm Nathan Hager in Washington. 7 00:00:25,400 --> 00:00:28,240 Speaker 3: I'm callin Heppoon, London, where we're delving into the special 8 00:00:28,400 --> 00:00:31,840 Speaker 3: election that could redefine the UK's political future. 9 00:00:32,080 --> 00:00:34,760 Speaker 4: I'm Doug Prisner, looking ahead to Indian Prime Minister in 10 00:00:34,800 --> 00:00:37,800 Speaker 4: Narungramodi's visit to Israel in the coming week. 11 00:00:38,360 --> 00:00:42,400 Speaker 1: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 12 00:00:42,440 --> 00:00:46,120 Speaker 1: eleven three zero, New York, Bloomberg ninety nine to one, Washington, DC, 13 00:00:46,600 --> 00:00:50,879 Speaker 1: Bloomberg ninety two to nine, Boston, DAB Digital Radio, London, 14 00:00:51,280 --> 00:00:54,520 Speaker 1: Syria XM one twenty one, and around the world on 15 00:00:54,560 --> 00:00:57,720 Speaker 1: Bloomberg Radio, dot Com and the Bloomberg Business App. 16 00:01:02,440 --> 00:01:05,160 Speaker 2: Good day to you. I'm Nathan Hager. We begin today's 17 00:01:05,200 --> 00:01:09,000 Speaker 2: program with earnings from AI Chip Giant Invidia, the last 18 00:01:09,040 --> 00:01:11,800 Speaker 2: of the Magnificent Seven, reports its end of year results 19 00:01:11,880 --> 00:01:14,959 Speaker 2: after the close of training on Wednesday, for more. We're 20 00:01:15,040 --> 00:01:19,479 Speaker 2: joined by Kun John Sabhani, senior semiconductor analyst for Bloomberg Intelligence. 21 00:01:19,800 --> 00:01:22,360 Speaker 2: Great to have you with us on the program, Kun John. 22 00:01:22,400 --> 00:01:25,160 Speaker 2: Of course, in Vidia has been at the center of 23 00:01:25,200 --> 00:01:28,520 Speaker 2: the AI spending story for so long, so where do 24 00:01:28,560 --> 00:01:31,520 Speaker 2: you see the bar when it comes to Invidia's results 25 00:01:31,560 --> 00:01:32,279 Speaker 2: this time around? 26 00:01:33,200 --> 00:01:36,600 Speaker 5: As usual, the expectations will run high. You know, folks 27 00:01:36,640 --> 00:01:40,479 Speaker 5: are expecting the usual or if not better than the 28 00:01:40,520 --> 00:01:43,960 Speaker 5: mid single digit beaten race that we have gotten used 29 00:01:44,000 --> 00:01:47,760 Speaker 5: to with them, which I think is quite possible given 30 00:01:48,240 --> 00:01:53,160 Speaker 5: multiple drivers that have gotten better since their last quarterly earnings. 31 00:01:53,880 --> 00:01:57,120 Speaker 5: You know, we have heard from the largest customers of Nvidia, 32 00:01:57,360 --> 00:02:00,920 Speaker 5: and most of them have increased their CAPEX projection significantly, 33 00:02:01,560 --> 00:02:04,000 Speaker 5: some of them forty to fifty percent in case of 34 00:02:04,040 --> 00:02:06,840 Speaker 5: Google and Amazon for twenty twenty six, so that really helps. 35 00:02:07,200 --> 00:02:10,240 Speaker 5: We have heard of deals being made since last quarter 36 00:02:10,760 --> 00:02:15,799 Speaker 5: with these hyperscalers and other customers adopting millions of units 37 00:02:15,840 --> 00:02:19,520 Speaker 5: of in Nvidia, which should drive further upside to that 38 00:02:19,720 --> 00:02:26,160 Speaker 5: five hundred billion number that Jensen had provided end of 39 00:02:26,240 --> 00:02:30,919 Speaker 5: last year regarding the Blackwell and Rubin backlog through twenty 40 00:02:30,960 --> 00:02:34,080 Speaker 5: twenty six. So estimates are running higher than that, and 41 00:02:34,120 --> 00:02:38,119 Speaker 5: we expect them to give indications that it is going 42 00:02:38,160 --> 00:02:42,239 Speaker 5: to run higher than that. And finally, the third key 43 00:02:42,280 --> 00:02:47,480 Speaker 5: point will be visibility on resuming the H too or 44 00:02:47,520 --> 00:02:50,040 Speaker 5: I should say starting the H two hundred shipments to 45 00:02:50,160 --> 00:02:54,280 Speaker 5: China because that continues. Will be a key upside driver 46 00:02:54,400 --> 00:02:58,239 Speaker 5: if that happens soon. And we did see AMD start 47 00:02:58,280 --> 00:03:01,320 Speaker 5: to ship some of its prior to generation chipmates to 48 00:03:01,440 --> 00:03:04,600 Speaker 5: China in this quarter when there is a reported results. 49 00:03:04,320 --> 00:03:07,440 Speaker 2: Let's take some of those points in turn. John, you 50 00:03:07,520 --> 00:03:10,639 Speaker 2: mentioned the millions of units deployed. I think that was 51 00:03:10,680 --> 00:03:13,040 Speaker 2: an allusion to the announcement we heard just a few 52 00:03:13,120 --> 00:03:16,600 Speaker 2: days ago from Meta Platforms. Does that sort of raise 53 00:03:16,639 --> 00:03:18,440 Speaker 2: the bar when it comes to the outlook that we're 54 00:03:18,440 --> 00:03:20,680 Speaker 2: expecting to hear from Jensen in the call this week. 55 00:03:22,919 --> 00:03:25,440 Speaker 5: It does raise the bar for the full year. I 56 00:03:25,560 --> 00:03:28,400 Speaker 5: don't know if it raises the bar for the next quarter. 57 00:03:28,480 --> 00:03:32,760 Speaker 5: Outlook that deal with Meta, you know, it's a long 58 00:03:32,840 --> 00:03:35,520 Speaker 5: term deal and the lead times will be longer than 59 00:03:35,880 --> 00:03:38,040 Speaker 5: to get the revenue in this quarter, so does raise 60 00:03:38,040 --> 00:03:39,240 Speaker 5: the bar for the full earth. 61 00:03:39,960 --> 00:03:44,080 Speaker 2: And when it comes to the pipeline for future chips, 62 00:03:44,080 --> 00:03:48,520 Speaker 2: we heard Jensen talk about the Ruben semiconductor being on 63 00:03:48,640 --> 00:03:51,320 Speaker 2: track for the second half of this year at the 64 00:03:52,200 --> 00:03:56,360 Speaker 2: recent conference that Nvidia held. Are we expecting any more 65 00:03:56,400 --> 00:03:59,440 Speaker 2: clarity when it comes to some of those next generation 66 00:03:59,520 --> 00:04:00,320 Speaker 2: chips video. 67 00:04:02,280 --> 00:04:06,040 Speaker 5: I'm sure we will hear some commentary that evaluations are 68 00:04:06,080 --> 00:04:09,960 Speaker 5: going well, etc. Remember, this was a very unique time. 69 00:04:10,320 --> 00:04:14,320 Speaker 5: Usually at CES, Nvidia in the past has not talked 70 00:04:14,360 --> 00:04:18,480 Speaker 5: about their next generation products, which are released at the 71 00:04:18,560 --> 00:04:21,080 Speaker 5: end of the year. Usually they saved that for the GtC, 72 00:04:21,480 --> 00:04:24,719 Speaker 5: which will be their marquee event happening in March. Them 73 00:04:24,760 --> 00:04:28,599 Speaker 5: talking about this this early in the year gives gave 74 00:04:28,640 --> 00:04:31,919 Speaker 5: investors confidence that there would be sort of no hiccups 75 00:04:31,960 --> 00:04:34,440 Speaker 5: with the Rubin ramp as they're aware with Blackwells, So 76 00:04:34,480 --> 00:04:36,919 Speaker 5: that's a good news. We'll definitely hear some update, but 77 00:04:37,040 --> 00:04:40,680 Speaker 5: I think most of the big news will be saved 78 00:04:41,080 --> 00:04:43,480 Speaker 5: for him to talk about at GtC next month. 79 00:04:43,760 --> 00:04:45,760 Speaker 2: And when it comes to the re entry of the 80 00:04:45,920 --> 00:04:48,440 Speaker 2: H two hundred ship that you mentioned in China, we've 81 00:04:48,440 --> 00:04:51,520 Speaker 2: heard jenst in the past talk about, you know, even 82 00:04:51,640 --> 00:04:54,320 Speaker 2: keeping China revenue off the table, they're still going to 83 00:04:54,320 --> 00:04:57,240 Speaker 2: put out pretty significant numbers. How important is it though, 84 00:04:57,520 --> 00:04:59,919 Speaker 2: for Nvidia to get back into the Chinese market to 85 00:05:00,080 --> 00:05:01,080 Speaker 2: keep its momentum going. 86 00:05:03,160 --> 00:05:07,240 Speaker 5: I think it is definitely important. Look, most of the 87 00:05:07,320 --> 00:05:10,600 Speaker 5: other areas they are dominating, so investors are very aware. 88 00:05:10,640 --> 00:05:13,479 Speaker 5: So this is a market which if it does open 89 00:05:13,560 --> 00:05:16,560 Speaker 5: up significantly for them, they can go and grab another 90 00:05:16,800 --> 00:05:20,320 Speaker 5: significant share, a dominant share. Before the shipment sanctions had 91 00:05:20,360 --> 00:05:23,080 Speaker 5: come in and Vidia was a dominant share of that market, 92 00:05:23,160 --> 00:05:26,560 Speaker 5: So definitely very important. Could easily, you know, if the 93 00:05:26,600 --> 00:05:29,839 Speaker 5: gates get open, you can easily think about adding somewhere 94 00:05:29,880 --> 00:05:34,480 Speaker 5: between seven to twelve thirteen billion dollars back, which is 95 00:05:34,520 --> 00:05:38,760 Speaker 5: a substantial amount. Yes, we'll not move. I mean if 96 00:05:38,800 --> 00:05:40,440 Speaker 5: the company is going to about to be making one 97 00:05:40,520 --> 00:05:43,760 Speaker 5: hundred and fifty two hundred billion dollars, you can argue 98 00:05:43,800 --> 00:05:47,800 Speaker 5: five to twelve billion is small, but still a significant upside. 99 00:05:48,040 --> 00:05:50,520 Speaker 2: Of course, there's been so much discussion within the market 100 00:05:50,560 --> 00:05:53,800 Speaker 2: about you know, whether there's too much spending in AI, 101 00:05:53,920 --> 00:05:57,360 Speaker 2: whether it's circular spending, and even this AI disruption trade. 102 00:05:57,360 --> 00:06:00,599 Speaker 2: How do you expect in Nvidia's results to color some 103 00:06:00,680 --> 00:06:02,280 Speaker 2: of that debate on Wall Street? 104 00:06:04,480 --> 00:06:08,760 Speaker 5: I don't think. I mean, if anything, a better results 105 00:06:08,760 --> 00:06:12,400 Speaker 5: from in media could keep these arguments going forward. I 106 00:06:12,480 --> 00:06:17,640 Speaker 5: don't think better results will will help with diminishing these arguments. 107 00:06:17,680 --> 00:06:20,679 Speaker 5: In fact, a week result could slow down this argument, 108 00:06:20,920 --> 00:06:24,880 Speaker 5: giving people the more validity that these concents are real. 109 00:06:25,120 --> 00:06:27,320 Speaker 5: We don't think these concents are real at this point, 110 00:06:27,480 --> 00:06:30,320 Speaker 5: and as long as Nvidia keeps doing better and better, 111 00:06:30,600 --> 00:06:33,120 Speaker 5: I don't think these arguments will go away anywhere. 112 00:06:33,520 --> 00:06:36,520 Speaker 2: Appreciate this, Kun John. Ahead of those earnings from Nvidia, 113 00:06:36,920 --> 00:06:40,760 Speaker 2: much appreciated, that is, Kun John Sabhani, Bloomberg Intelligence Senior 114 00:06:40,839 --> 00:06:43,920 Speaker 2: Semiconductor Analyst. Let's take a look now at some stocks 115 00:06:43,960 --> 00:06:46,200 Speaker 2: making news in the week ahead. I'm Nathan Hager, joined 116 00:06:46,200 --> 00:06:50,320 Speaker 2: by Bloomberg Markets Live Managing Editor Christine Akino. I thought 117 00:06:50,320 --> 00:06:52,720 Speaker 2: we were almost done with earnings, Christine, but it looks 118 00:06:52,720 --> 00:06:55,000 Speaker 2: like we got some pretty big names reporting this week, 119 00:06:55,040 --> 00:06:59,560 Speaker 2: including Home Depot. On Tuesday was the holiday quarter, a 120 00:06:59,680 --> 00:07:01,760 Speaker 2: time people were thinking about home improvement. 121 00:07:02,000 --> 00:07:04,920 Speaker 6: Oh well, Nathan, I think from what we've heard from 122 00:07:04,920 --> 00:07:08,799 Speaker 6: Home Depot, things are not looking great. They have implemented 123 00:07:08,839 --> 00:07:12,000 Speaker 6: a lot of cost custing cutting measures over the last 124 00:07:12,120 --> 00:07:14,360 Speaker 6: couple of months. So this month, for example, the company 125 00:07:14,400 --> 00:07:17,480 Speaker 6: said it's making the requirements for bonus payouts to managers 126 00:07:17,520 --> 00:07:20,920 Speaker 6: more strict if they're telling eligible employees that they now 127 00:07:21,000 --> 00:07:24,880 Speaker 6: have a higher threshold for sales performance metrics to be 128 00:07:24,920 --> 00:07:27,360 Speaker 6: able to receive this bonus. And then in January they 129 00:07:27,400 --> 00:07:29,680 Speaker 6: also said that they're going to be cutting jobs across 130 00:07:29,720 --> 00:07:33,800 Speaker 6: several teams and also requiring corporate staff to return to 131 00:07:34,040 --> 00:07:37,000 Speaker 6: the office, and so it really seems like home Depot 132 00:07:37,120 --> 00:07:40,320 Speaker 6: is really bracing for a challenging quarter that's probably going 133 00:07:40,360 --> 00:07:43,600 Speaker 6: to be reflected in the earnings results that we're going 134 00:07:43,680 --> 00:07:45,800 Speaker 6: to be seeing. And so it's just a question of whether, 135 00:07:46,120 --> 00:07:49,040 Speaker 6: you know, once investors see them, are they going to 136 00:07:49,120 --> 00:07:51,640 Speaker 6: see enough of a silver aligning in those results? You know, 137 00:07:51,720 --> 00:07:54,920 Speaker 6: whether it's the cost cutting measures that Home Deep implemented 138 00:07:55,080 --> 00:07:57,800 Speaker 6: or anything else that they're doing that would give them 139 00:07:57,840 --> 00:08:00,560 Speaker 6: a steadier footing moving forward. That's probably going to be 140 00:08:00,560 --> 00:08:02,080 Speaker 6: what's in focus for investors next week. 141 00:08:02,280 --> 00:08:04,920 Speaker 2: It is interesting though, I mean, we're still off the 142 00:08:05,600 --> 00:08:08,480 Speaker 2: high from September for home Depot, but the stock has 143 00:08:08,480 --> 00:08:10,240 Speaker 2: been kind of on a bit of a bounce here 144 00:08:10,240 --> 00:08:11,960 Speaker 2: over the last couple of months. So does that mean 145 00:08:11,960 --> 00:08:13,720 Speaker 2: the bar is kind of higher for home Depot when 146 00:08:13,720 --> 00:08:14,600 Speaker 2: it comes to the earnings. 147 00:08:14,920 --> 00:08:18,160 Speaker 6: Yeah, I suppose you could say that just because you know, 148 00:08:18,600 --> 00:08:22,160 Speaker 6: it has weathered a lot of storms over the last 149 00:08:22,160 --> 00:08:25,360 Speaker 6: few months. They have been warning for quite some time 150 00:08:25,400 --> 00:08:28,480 Speaker 6: now about slow down in housing, which is very much 151 00:08:28,520 --> 00:08:31,360 Speaker 6: affecting their bottom line. But at the same time, we 152 00:08:31,400 --> 00:08:34,160 Speaker 6: have seen, as you mentioned, a resilience in the shares, 153 00:08:34,200 --> 00:08:38,520 Speaker 6: and so perhaps there is some of that optimism baked 154 00:08:38,559 --> 00:08:42,559 Speaker 6: in already that the company will be able to keep afloat. 155 00:08:42,640 --> 00:08:46,160 Speaker 6: It's it's you know, it's it's earnings outlook, it's revenue outlook, 156 00:08:46,880 --> 00:08:49,920 Speaker 6: and so you know, if there is some disappointment there, 157 00:08:50,200 --> 00:08:54,240 Speaker 6: we'll probably see that in the aftermath of the reaction 158 00:08:54,320 --> 00:08:55,280 Speaker 6: to the earnings. 159 00:08:54,960 --> 00:08:57,880 Speaker 2: Coming Moving from Home Depot, another stock that starts with 160 00:08:58,200 --> 00:08:59,800 Speaker 2: H reports on Tuesday. 161 00:09:00,240 --> 00:09:00,560 Speaker 5: HP. 162 00:09:01,480 --> 00:09:05,040 Speaker 2: Where are they when it comes to the AI tech story? 163 00:09:05,400 --> 00:09:08,400 Speaker 6: Yeah, I mean very interesting when it comes to HP. 164 00:09:08,559 --> 00:09:10,520 Speaker 6: Of course, it did get a bit of a boost 165 00:09:10,559 --> 00:09:13,480 Speaker 6: when it comes to the AI story, right. It was 166 00:09:13,600 --> 00:09:18,360 Speaker 6: very much involved in that trade back in the latter 167 00:09:18,720 --> 00:09:21,120 Speaker 6: part of twenty twenty five when it was all about 168 00:09:21,320 --> 00:09:25,920 Speaker 6: the expansion of the AI trade to the various companies 169 00:09:25,920 --> 00:09:29,920 Speaker 6: involved in implementing the data center build out, and HP 170 00:09:30,240 --> 00:09:32,280 Speaker 6: is a part of that supply chain. But you know, 171 00:09:32,280 --> 00:09:37,480 Speaker 6: our Analyti Bloomber intelligence really focusing in on margins for 172 00:09:37,720 --> 00:09:40,400 Speaker 6: HP here. They are big in the PC space, a 173 00:09:40,440 --> 00:09:43,480 Speaker 6: lot of pressure there when it comes to margins, and 174 00:09:44,440 --> 00:09:46,640 Speaker 6: and so that's a big question whether they're going to 175 00:09:46,640 --> 00:09:48,360 Speaker 6: be able to. 176 00:09:47,760 --> 00:09:48,520 Speaker 5: Keep that up. 177 00:09:48,640 --> 00:09:53,200 Speaker 6: Also question about you know, their their memory supply. Is 178 00:09:53,240 --> 00:09:57,520 Speaker 6: that supply chain again going to be resilient and moving forward, 179 00:09:58,520 --> 00:10:01,360 Speaker 6: And you know, it's a big Q question whether they're 180 00:10:01,440 --> 00:10:04,560 Speaker 6: going to be able to maintain pricing power given that 181 00:10:05,000 --> 00:10:07,559 Speaker 6: the environment at the moment for anything air related is 182 00:10:07,600 --> 00:10:09,679 Speaker 6: a little bit more challenging as we've seen in recent 183 00:10:09,679 --> 00:10:10,200 Speaker 6: price action. 184 00:10:10,640 --> 00:10:13,480 Speaker 2: Is that what we're seeing and reflected in terms of 185 00:10:13,640 --> 00:10:16,640 Speaker 2: the kind of steady decline that we've been seeing in 186 00:10:16,840 --> 00:10:18,640 Speaker 2: hpiece chart over the last few months. 187 00:10:18,960 --> 00:10:21,640 Speaker 6: Yeah, absolutely, Nathan, I mean, I think it is one 188 00:10:21,679 --> 00:10:23,959 Speaker 6: of these socks very interesting. You know, it's just kind 189 00:10:23,960 --> 00:10:28,000 Speaker 6: of right in the middle of kind of institutional air demand, 190 00:10:28,320 --> 00:10:31,679 Speaker 6: right given that it is part of the buildout story. 191 00:10:31,679 --> 00:10:34,400 Speaker 6: But then at the same time, a lot of fluctuations 192 00:10:34,480 --> 00:10:39,439 Speaker 6: due to its spot when it comes to the consumer space, right, 193 00:10:39,480 --> 00:10:42,400 Speaker 6: Like it's PC offering still very much subject to the 194 00:10:42,400 --> 00:10:45,559 Speaker 6: whims of the consumer, and as we've been hearing from 195 00:10:45,559 --> 00:10:48,200 Speaker 6: a lot of other companies, that is quite a challenge environment. 196 00:10:48,240 --> 00:10:53,680 Speaker 6: It's not that consumers are fully scaling back on their purchases, 197 00:10:53,720 --> 00:10:56,559 Speaker 6: they're just being more strategic about it. And that may 198 00:10:56,600 --> 00:10:59,760 Speaker 6: be where HP's vulnerabilities really maybe. 199 00:11:00,559 --> 00:11:03,960 Speaker 2: And on Thursday we hear from one of HP's competitors. 200 00:11:04,000 --> 00:11:05,600 Speaker 2: Is it going to be a similar story when it 201 00:11:05,600 --> 00:11:06,959 Speaker 2: comes to Dell Computer? 202 00:11:07,280 --> 00:11:09,640 Speaker 6: Yeah? I mean for Dell, it really has been a 203 00:11:09,720 --> 00:11:11,920 Speaker 6: rough start to twenty twenty six. Right, We've seen their 204 00:11:11,920 --> 00:11:15,120 Speaker 6: shares down more than seven percent. They very much did 205 00:11:15,160 --> 00:11:19,720 Speaker 6: get wrapped up in the early twenty twenty six declines 206 00:11:19,800 --> 00:11:23,000 Speaker 6: for US equities in general, given all these fears about 207 00:11:23,160 --> 00:11:27,760 Speaker 6: AI disruption, and you know, for Bloomer Intelligence, their outlook 208 00:11:27,800 --> 00:11:32,560 Speaker 6: really focusing in on the AI server demand that Dell 209 00:11:32,840 --> 00:11:35,280 Speaker 6: is enjoying, and so that is a positive for them 210 00:11:35,600 --> 00:11:38,839 Speaker 6: and as allow them to have a more broad consumer base. 211 00:11:39,920 --> 00:11:43,560 Speaker 6: And you know, our analysts are very much optimistic in 212 00:11:43,679 --> 00:11:47,120 Speaker 6: terms of their ability to sustain that momentum through twenty thirty. 213 00:11:48,080 --> 00:11:53,000 Speaker 6: So high expectations potentially for this earnings result possibly a 214 00:11:53,080 --> 00:11:55,040 Speaker 6: high potential for disappointment as well. 215 00:11:55,360 --> 00:11:59,439 Speaker 2: Okay, Well, another busy earnings week on tap. Thanks for this, Christine, 216 00:11:59,440 --> 00:12:04,080 Speaker 2: good having your Christina Keino, Managing editor for Bloomberg Markets Live. 217 00:12:04,400 --> 00:12:06,880 Speaker 2: Coming up on Bloomberg day Break weekend, we'll look at 218 00:12:06,880 --> 00:12:10,760 Speaker 2: the special election that could redefine the UK's political future. 219 00:12:11,040 --> 00:12:26,240 Speaker 2: I'm Nathan Hager, and this is Bloomberg. This is Bloomberg 220 00:12:26,280 --> 00:12:28,800 Speaker 2: day Break Weekend, our global look ahead at the top 221 00:12:28,840 --> 00:12:31,640 Speaker 2: stories for investors in the coming week. I'm Nathan Hager 222 00:12:31,679 --> 00:12:34,360 Speaker 2: in Washington. Up later in our program we'll look ahead 223 00:12:34,400 --> 00:12:38,080 Speaker 2: to Indian Prime Minister Narendra Modi's visit to Israel. But 224 00:12:38,120 --> 00:12:40,720 Speaker 2: first in the coming days, a special election in the 225 00:12:40,840 --> 00:12:44,880 Speaker 2: UK could highlight the fractured state of British politics. Bookmakers 226 00:12:44,920 --> 00:12:47,520 Speaker 2: are predicting a three horse race between Labor and the 227 00:12:47,520 --> 00:12:50,760 Speaker 2: insurgents on the right hand left. Gambling odds compiled by 228 00:12:50,760 --> 00:12:53,640 Speaker 2: odds Checker suggests the Green Party will edge out Reform, 229 00:12:53,880 --> 00:12:57,040 Speaker 2: with the incumbent Labor Party third. For more, let's go 230 00:12:57,080 --> 00:13:01,520 Speaker 2: to London and bring in Bloomberg Daybreak Europe banker Caroline Nathan. 231 00:13:01,280 --> 00:13:05,600 Speaker 3: In an unassuming and often neglected Manchester suburb, a three 232 00:13:05,640 --> 00:13:10,040 Speaker 3: way fight is hotting up between challenger parties Reform UK 233 00:13:10,520 --> 00:13:13,360 Speaker 3: and the Green Party, who are vying to pry the 234 00:13:13,440 --> 00:13:17,760 Speaker 3: area's parliamentary seat away from the incumbent governing Labor Party, 235 00:13:18,200 --> 00:13:21,080 Speaker 3: with a special by election looming in Gordon and Denton 236 00:13:21,120 --> 00:13:24,240 Speaker 3: on the twenty sixth of February. The battle is highlighting 237 00:13:24,320 --> 00:13:28,600 Speaker 3: the sinking popularity of Prime Minister Kirs Stamer's Labor administration 238 00:13:28,920 --> 00:13:32,240 Speaker 3: and the rising fortunes of populist competitors on both the 239 00:13:32,320 --> 00:13:36,760 Speaker 3: right and the left. It's an uncertain situation that could 240 00:13:36,800 --> 00:13:41,560 Speaker 3: have implications for the UK's politics and economic prospects. Three 241 00:13:41,679 --> 00:13:46,680 Speaker 3: Gutchukovin Dan is senior research economists at UK Asset Manager Aberdeen. 242 00:13:47,080 --> 00:13:50,880 Speaker 3: She says the instability could prove costly what we're seeing. 243 00:13:50,920 --> 00:13:53,200 Speaker 7: I mean, it's been a good week for bomb markets 244 00:13:53,600 --> 00:13:57,199 Speaker 7: in the UK and elsewhere, but there is a lot 245 00:13:57,240 --> 00:13:59,880 Speaker 7: of premium already in the guilt market. 246 00:14:00,960 --> 00:14:03,599 Speaker 3: But I've say a lot of rates investors are cautious. 247 00:14:03,320 --> 00:14:06,320 Speaker 7: And I think these key events like the by election 248 00:14:07,000 --> 00:14:11,200 Speaker 7: in ten days time, the local elections in May, there 249 00:14:11,320 --> 00:14:14,280 Speaker 7: is the acceptance that there could there is likely to 250 00:14:14,320 --> 00:14:18,120 Speaker 7: be a leadership change later this year. So obviously we 251 00:14:18,160 --> 00:14:19,800 Speaker 7: had a bit of a flash point. Two weeks ago 252 00:14:19,880 --> 00:14:22,560 Speaker 7: and Kilts really sold off quite aggressively and that is 253 00:14:22,600 --> 00:14:24,560 Speaker 7: an issue for the government. High interest rates are an 254 00:14:24,600 --> 00:14:28,400 Speaker 7: issue for the government, so whoever leads the UK later 255 00:14:28,520 --> 00:14:30,600 Speaker 7: this year will have to keep that in mind. 256 00:14:31,000 --> 00:14:34,480 Speaker 3: So perhaps a challenge to the Prime Minister Kirs Starmer 257 00:14:34,600 --> 00:14:37,760 Speaker 3: Sui Kutchu Govin Dan seeing a research economist at UK 258 00:14:37,880 --> 00:14:40,880 Speaker 3: Asset Manager Aberdeen speak to me and Stephen Cowell on 259 00:14:40,880 --> 00:14:45,640 Speaker 3: Bloomberg Radio. So will the coming local contest between the 260 00:14:45,640 --> 00:14:51,280 Speaker 3: government and all its challengers leave Starmer vulnerable or vindicated? 261 00:14:51,640 --> 00:14:54,800 Speaker 3: Joining me now to discuss is our Bloomberg UK Economy 262 00:14:54,840 --> 00:14:59,120 Speaker 3: reporter Arena and Angel and our UK Politics reporter Lucy 263 00:14:59,200 --> 00:15:01,520 Speaker 3: White come to both of you. Thank you for being 264 00:15:01,960 --> 00:15:04,240 Speaker 3: with us. Lucy. Should we start with a bit of 265 00:15:04,240 --> 00:15:08,280 Speaker 3: the politics. Set the scene. Why is this by election 266 00:15:08,480 --> 00:15:10,200 Speaker 3: so crucial for Keir Starmer? 267 00:15:10,680 --> 00:15:13,640 Speaker 8: So there's not very often in between general elections that 268 00:15:13,680 --> 00:15:16,560 Speaker 8: we get a sort of national vote like this, because 269 00:15:16,640 --> 00:15:19,040 Speaker 8: this isn't you know, your kind of usual local politics 270 00:15:19,520 --> 00:15:22,280 Speaker 8: kind of election. This is a by election for a 271 00:15:22,320 --> 00:15:25,960 Speaker 8: seat in Westminster. So it's the first real test that 272 00:15:26,080 --> 00:15:28,520 Speaker 8: we're going to have for an area where they are 273 00:15:28,520 --> 00:15:31,760 Speaker 8: electing a new person to Westminster, and this is all 274 00:15:31,800 --> 00:15:34,680 Speaker 8: because Andrew gyn has resigned on health grounds, but he 275 00:15:35,040 --> 00:15:37,200 Speaker 8: was also caught up in a bit of a scandal. 276 00:15:37,240 --> 00:15:41,000 Speaker 8: He's the labor incumbents at the moment around leaked WhatsApp messages, 277 00:15:41,640 --> 00:15:44,080 Speaker 8: and this is going to be the first real test 278 00:15:44,120 --> 00:15:48,600 Speaker 8: we have of who these people in Gorson and Denton 279 00:15:48,840 --> 00:15:52,560 Speaker 8: want as their representative. And as you were saying just then, 280 00:15:52,640 --> 00:15:55,280 Speaker 8: you know, there's a real flashpoint at the moment as 281 00:15:55,320 --> 00:15:58,560 Speaker 8: to Obviously there's some kind of idiosyncratic reasons why people 282 00:15:58,840 --> 00:16:01,520 Speaker 8: are not a fan of laboring in that area, but 283 00:16:01,560 --> 00:16:04,280 Speaker 8: there's also this kind of real challenge, real tussle going 284 00:16:04,320 --> 00:16:06,680 Speaker 8: on between Reform and the Greens at the moment. And 285 00:16:06,720 --> 00:16:09,760 Speaker 8: if this goes badly in for labor in Manchester or 286 00:16:09,800 --> 00:16:13,400 Speaker 8: in this particular suburb of Manchester where labor have really 287 00:16:13,400 --> 00:16:17,600 Speaker 8: had a sort of strongholder for several years, the implications 288 00:16:17,600 --> 00:16:20,320 Speaker 8: for this nationally are are pretty stark. 289 00:16:20,720 --> 00:16:22,920 Speaker 3: We really have polling at the moment, but how much 290 00:16:23,160 --> 00:16:26,560 Speaker 3: ground might labor have lost in this region. Who are 291 00:16:26,600 --> 00:16:28,440 Speaker 3: the front runners, So it's. 292 00:16:28,320 --> 00:16:30,680 Speaker 8: Really a three way tie at the moment. We've got 293 00:16:31,040 --> 00:16:34,480 Speaker 8: Labor as the incumbents, and then we've got the Green 294 00:16:34,560 --> 00:16:36,760 Speaker 8: Party who are really hoping to make gains on the 295 00:16:36,800 --> 00:16:40,720 Speaker 8: sort of populist left of politics, and Reform who are 296 00:16:41,080 --> 00:16:43,360 Speaker 8: at the polar opposite end of that sort of making 297 00:16:44,120 --> 00:16:48,200 Speaker 8: looking to make headway on the populist right. And they're 298 00:16:48,240 --> 00:16:50,120 Speaker 8: you know, kind of involved in this three way battle. 299 00:16:51,160 --> 00:16:54,200 Speaker 8: It's hard to tell who is doing particularly well at 300 00:16:54,240 --> 00:16:56,960 Speaker 8: the moment because there's no sort of you know, kind 301 00:16:56,960 --> 00:16:59,520 Speaker 8: of there is. There is polling at a local level, 302 00:16:59,520 --> 00:17:01,680 Speaker 8: but none of it, you know, kind of particularly reliable. 303 00:17:01,680 --> 00:17:05,080 Speaker 8: The sample sizes just aren't as big. From myself and 304 00:17:05,160 --> 00:17:07,240 Speaker 8: Arena when we were on the ground last week in 305 00:17:07,600 --> 00:17:10,399 Speaker 8: the area, there's a huge amount of visibility for the 306 00:17:10,400 --> 00:17:13,359 Speaker 8: Green Party. This post is everywhere, there's a lot of 307 00:17:13,359 --> 00:17:18,480 Speaker 8: campaigners on the ground. For Reform, there's very little visibility, 308 00:17:18,640 --> 00:17:21,639 Speaker 8: but you know, kind of local polling does seem to 309 00:17:21,240 --> 00:17:24,879 Speaker 8: see them doing quite well. As for Labor, you know, 310 00:17:24,920 --> 00:17:26,920 Speaker 8: there's a lot of people who are kind of well, 311 00:17:26,920 --> 00:17:30,040 Speaker 8: I've I've voted labors all my life, so I probably will. 312 00:17:30,040 --> 00:17:32,119 Speaker 8: But there's an equal number i'd say that we spoke 313 00:17:32,160 --> 00:17:34,800 Speaker 8: to of people that we spoke to there who say 314 00:17:35,080 --> 00:17:37,160 Speaker 8: whether it's due to the Andrew growing what's up scandal 315 00:17:37,240 --> 00:17:39,960 Speaker 8: or whether it's due to Kirstarma just saying I will 316 00:17:40,119 --> 00:17:41,520 Speaker 8: never vote labor again in my life. 317 00:17:42,119 --> 00:17:45,199 Speaker 3: Arena take us through the economics, then we know that 318 00:17:45,400 --> 00:17:51,840 Speaker 3: for a long time, UK wages and incomes really haven't 319 00:17:51,960 --> 00:17:56,440 Speaker 3: risen very much. The economy isn't growing very quickly. How 320 00:17:56,480 --> 00:18:00,159 Speaker 3: has that manifested in Manchester and how do resident and 321 00:18:00,280 --> 00:18:01,400 Speaker 3: there I feel about it? 322 00:18:02,160 --> 00:18:04,560 Speaker 9: When Lucy and I went up there, I would say 323 00:18:04,560 --> 00:18:06,520 Speaker 9: that the top issue that came up in Gordon and 324 00:18:06,600 --> 00:18:09,800 Speaker 9: Denton was at the rising cost of living and you 325 00:18:09,840 --> 00:18:12,320 Speaker 9: know you have that, you also have the rise in 326 00:18:12,359 --> 00:18:13,600 Speaker 9: the cost of doing business. 327 00:18:14,520 --> 00:18:16,480 Speaker 10: There's also you know, other issues related. 328 00:18:16,160 --> 00:18:19,240 Speaker 9: To flight tipping, decaying states, drug dealing, and you know, 329 00:18:19,640 --> 00:18:22,760 Speaker 9: underneath this you could sense that there is one big issue, 330 00:18:22,840 --> 00:18:25,600 Speaker 9: and that issue is that the community is decaying. 331 00:18:25,760 --> 00:18:27,639 Speaker 10: But things didn't used to be like this, you know. 332 00:18:27,720 --> 00:18:30,080 Speaker 9: So the people of Gordon and Dent and they seem 333 00:18:30,080 --> 00:18:32,120 Speaker 9: to be people who take pride and where they come 334 00:18:32,160 --> 00:18:34,800 Speaker 9: from and pride and who they are, and there's a 335 00:18:34,840 --> 00:18:37,760 Speaker 9: sense that that's now been taken away from them. And 336 00:18:37,840 --> 00:18:39,840 Speaker 9: who do they blame for this? They blame the government 337 00:18:40,000 --> 00:18:42,000 Speaker 9: and you know labor came in with big promises. There 338 00:18:42,080 --> 00:18:44,840 Speaker 9: was real hope that things will change quickly, but they 339 00:18:44,840 --> 00:18:47,959 Speaker 9: haven't for you know, many reasons. You know, perhaps some 340 00:18:48,040 --> 00:18:49,960 Speaker 9: of the are default of policy. Others are you know, 341 00:18:49,960 --> 00:18:53,600 Speaker 9: are just the result of like structural factors which you 342 00:18:53,600 --> 00:18:57,159 Speaker 9: know could never be turned around very quickly. And you know, 343 00:18:57,280 --> 00:19:01,159 Speaker 9: and the local people also blame their previous MP and Gwynn. 344 00:19:01,200 --> 00:19:03,000 Speaker 9: You know, some told us they wrote to him to 345 00:19:03,040 --> 00:19:05,280 Speaker 9: complain but they never heard back. So they feel like 346 00:19:05,400 --> 00:19:08,399 Speaker 9: things are not getting better and also that they're getting neglected. 347 00:19:09,400 --> 00:19:11,200 Speaker 3: I think that's really interesting. So then what do we 348 00:19:11,280 --> 00:19:16,640 Speaker 3: know about the economic profile of those who perhaps are 349 00:19:16,840 --> 00:19:20,760 Speaker 3: likely to support the challenge of parties, parties like Reform 350 00:19:20,880 --> 00:19:23,400 Speaker 3: and the Greens. If you say that, underneath it there's 351 00:19:23,960 --> 00:19:28,640 Speaker 3: what sounds like quite a lot of anger, maybe some hopelessness. 352 00:19:28,600 --> 00:19:33,880 Speaker 9: Exactly, and Reforming Green voters are actually very similar in a. 353 00:19:33,880 --> 00:19:35,680 Speaker 10: Key way they feel. 354 00:19:35,960 --> 00:19:37,919 Speaker 9: And this is at the national level, not just in 355 00:19:38,000 --> 00:19:40,040 Speaker 9: Gordon and Denton. But it was really interesting to see 356 00:19:40,040 --> 00:19:43,520 Speaker 9: it sort of play out there. But these people feel 357 00:19:43,600 --> 00:19:46,080 Speaker 9: somehow cheated on by the sort of by the political 358 00:19:46,080 --> 00:19:47,200 Speaker 9: economy of the country. 359 00:19:47,880 --> 00:19:50,800 Speaker 10: So look thrill from more in common put this very well. 360 00:19:51,560 --> 00:19:53,240 Speaker 9: You know he told me that, you know, you ask 361 00:19:53,320 --> 00:19:56,399 Speaker 9: people is the system working? And the answer tends to 362 00:19:56,400 --> 00:19:59,640 Speaker 9: be no, Then you ask them, okay, can we change 363 00:19:59,640 --> 00:20:02,080 Speaker 9: the system them from within to make it work or 364 00:20:02,080 --> 00:20:04,560 Speaker 9: do we just burn it all down? And the burn 365 00:20:04,600 --> 00:20:06,520 Speaker 9: it all down theres These are the people who either 366 00:20:06,560 --> 00:20:07,720 Speaker 9: go to reform or the. 367 00:20:07,680 --> 00:20:10,840 Speaker 10: Greens, you know which one. It depends on who they blame. 368 00:20:10,920 --> 00:20:13,480 Speaker 9: For the Greens, that tends to be capitalism and big 369 00:20:13,520 --> 00:20:16,719 Speaker 9: corporates capturing the economic gains from themselves and leaving everyone 370 00:20:16,720 --> 00:20:17,440 Speaker 9: else worse off. 371 00:20:18,320 --> 00:20:20,119 Speaker 10: So you have, you know, young university. 372 00:20:19,840 --> 00:20:25,360 Speaker 9: Educated people who are a big demographic for them, and 373 00:20:25,440 --> 00:20:29,080 Speaker 9: for reform, it's really blaming immigration and migrants putting a 374 00:20:29,119 --> 00:20:30,959 Speaker 9: strain on public services. 375 00:20:31,320 --> 00:20:33,800 Speaker 3: I'm sure that Labor are putting up a good fight 376 00:20:33,960 --> 00:20:37,560 Speaker 3: and trying to make their case for why perhaps they 377 00:20:37,600 --> 00:20:40,160 Speaker 3: need more time or the progress that they've made so far, 378 00:20:40,800 --> 00:20:44,760 Speaker 3: Lucy in terms of kissed Arma, how much damage could 379 00:20:44,800 --> 00:20:49,600 Speaker 3: it do potentially if Labor were to fail to retain 380 00:20:49,800 --> 00:20:51,119 Speaker 3: this parliamentary seat. 381 00:20:51,800 --> 00:20:56,159 Speaker 8: I think it will be embarrassing for them. But at 382 00:20:56,200 --> 00:20:59,240 Speaker 8: the same time, I'm not sure that people within Labor 383 00:20:59,240 --> 00:21:01,960 Speaker 8: have a huge amount of hope for it going particularly 384 00:21:01,960 --> 00:21:04,639 Speaker 8: well at the moment, I think, you know, it's important 385 00:21:04,720 --> 00:21:06,919 Speaker 8: to realize that this is just one area and that 386 00:21:07,119 --> 00:21:09,200 Speaker 8: you know, I daresay if I were to be Devil's 387 00:21:09,200 --> 00:21:11,639 Speaker 8: advocate for labor, they would say that there are, you know, 388 00:21:11,720 --> 00:21:14,399 Speaker 8: some very idiosyncratic issues in this area, for example, the 389 00:21:14,560 --> 00:21:17,600 Speaker 8: WhatsApp scandal that Andrew Grimm was involved in. But at 390 00:21:17,640 --> 00:21:19,119 Speaker 8: the same time, you know, it is going to be 391 00:21:19,200 --> 00:21:21,359 Speaker 8: hugely embarrassing for them if they lose in a seat 392 00:21:21,440 --> 00:21:25,399 Speaker 8: where as recently as twenty twenty four they won fifty 393 00:21:25,400 --> 00:21:30,040 Speaker 8: point eight percent of the vote, and even more, it's 394 00:21:30,119 --> 00:21:32,600 Speaker 8: kind of hard to compare because the boundaries were slightly 395 00:21:32,600 --> 00:21:34,840 Speaker 8: different than the general election before that in twenty nineteen, 396 00:21:35,040 --> 00:21:37,280 Speaker 8: but it would have been even higher back then. So 397 00:21:38,160 --> 00:21:40,840 Speaker 8: I think if Labor are to you know, go from 398 00:21:40,920 --> 00:21:43,680 Speaker 8: that level to totally losing the seat, it is a 399 00:21:43,760 --> 00:21:46,800 Speaker 8: kind of really worrying sign for them, because you know, 400 00:21:47,000 --> 00:21:50,080 Speaker 8: if we're to have you know, this pattern repeated across 401 00:21:50,080 --> 00:21:53,720 Speaker 8: the country in areas where labor isn't was never this 402 00:21:53,720 --> 00:21:55,960 Speaker 8: this good, then you know, they're really looking at a 403 00:21:56,160 --> 00:22:00,280 Speaker 8: kind of potential wipeout at the next election, which is 404 00:22:00,359 --> 00:22:02,160 Speaker 8: due to be held by the next general election, which 405 00:22:02,240 --> 00:22:03,720 Speaker 8: is due to be held by twenty twenty nine. 406 00:22:05,200 --> 00:22:09,000 Speaker 3: So in terms of what's going on with the demographics 407 00:22:09,000 --> 00:22:11,919 Speaker 3: in the constituency, I think that's also quite interesting and 408 00:22:11,920 --> 00:22:14,040 Speaker 3: there's been quite a lot of focus on that in 409 00:22:14,119 --> 00:22:18,480 Speaker 3: terms of the economic challenges, worries, complaints or hopes that 410 00:22:18,520 --> 00:22:21,320 Speaker 3: people have for that tell us about the demographics arena. 411 00:22:21,640 --> 00:22:24,680 Speaker 9: So the Gorton and Denton has been called the Frankenstein 412 00:22:24,840 --> 00:22:28,480 Speaker 9: constituency because it's made up of very different parts. You know, 413 00:22:28,560 --> 00:22:31,720 Speaker 9: you have Gorton and crucially this is where two thirds 414 00:22:31,720 --> 00:22:36,160 Speaker 9: of the population lives, and Gordon is very ethnically diverse. 415 00:22:36,240 --> 00:22:38,600 Speaker 9: Forty percent of residents identify as Muslim. 416 00:22:38,960 --> 00:22:39,119 Speaker 11: You know. 417 00:22:39,200 --> 00:22:41,399 Speaker 9: One of the main places we visited there is the 418 00:22:41,440 --> 00:22:46,320 Speaker 9: Alongside Market, this big open air market reminiscent of Istanbul bazaars, 419 00:22:46,440 --> 00:22:49,200 Speaker 9: and it also has a Gorton has a large share 420 00:22:49,240 --> 00:22:52,320 Speaker 9: of students and university graduates and a larger share of these. 421 00:22:52,240 --> 00:22:53,520 Speaker 10: People than Denton. 422 00:22:54,400 --> 00:22:57,080 Speaker 9: So Gordon is fertile ground you know for labor and 423 00:22:57,160 --> 00:23:00,920 Speaker 9: the Greens both have their headquarters there and as Lucy said, 424 00:23:00,920 --> 00:23:03,199 Speaker 9: you know, we saw lots of Green posters, but not 425 00:23:03,240 --> 00:23:05,919 Speaker 9: that many Labor, I would say when we visited last week. 426 00:23:06,840 --> 00:23:09,080 Speaker 9: And then you know, then there's Denton and as soon 427 00:23:09,119 --> 00:23:11,080 Speaker 9: as you cross into Dent and you can almost tell 428 00:23:11,119 --> 00:23:15,040 Speaker 9: the difference because the houses are bigger somehow, and you know, 429 00:23:15,320 --> 00:23:17,960 Speaker 9: Reform has set up it's HQ there and it's in 430 00:23:18,000 --> 00:23:22,720 Speaker 9: a large, sort of sleek warehouse. And you know, regardless 431 00:23:22,760 --> 00:23:24,719 Speaker 9: whether you're from Gorton or Dent. And I think all 432 00:23:24,800 --> 00:23:26,800 Speaker 9: voters seem to agree on one thing. You know, they 433 00:23:26,840 --> 00:23:31,080 Speaker 9: won't vote Labor again. But not many people have made 434 00:23:31,160 --> 00:23:33,520 Speaker 9: up their mind about whether they go to the Greens 435 00:23:33,640 --> 00:23:36,320 Speaker 9: or Reforms. So you know, Reform seems to be alienating 436 00:23:36,400 --> 00:23:40,800 Speaker 9: voters and the ethnically diverse Gorton with its anti immigration message, 437 00:23:41,000 --> 00:23:43,320 Speaker 9: and you know, some residents said they won't vote for 438 00:23:43,359 --> 00:23:47,440 Speaker 9: them because they're racist. However, you know, the Greens similarly 439 00:23:47,520 --> 00:23:52,000 Speaker 9: are putting off other voters. For example, there was this 440 00:23:52,000 --> 00:23:54,760 Speaker 9: this resident we spoke to who said, you know, I 441 00:23:55,680 --> 00:23:58,879 Speaker 9: don't like Labor. I will vote for Reform even though 442 00:23:59,080 --> 00:24:01,520 Speaker 9: I don't with their stands on immigration. But I won't 443 00:24:01,600 --> 00:24:04,520 Speaker 9: vote for the Greenes because I don't like their stands 444 00:24:04,560 --> 00:24:09,520 Speaker 9: on prebritty blockers. So it's really really up in the 445 00:24:09,560 --> 00:24:10,840 Speaker 9: air sort of who will win? 446 00:24:11,800 --> 00:24:14,560 Speaker 3: Okay, thank you to both of you for your reporting 447 00:24:14,640 --> 00:24:17,320 Speaker 3: on the ground and for being with me here today. 448 00:24:17,520 --> 00:24:21,000 Speaker 3: My thanks to Bloomberg's economics reporter Arena Angel and to 449 00:24:21,119 --> 00:24:23,159 Speaker 3: our politics reporter Lucy White. 450 00:24:23,200 --> 00:24:23,640 Speaker 10: Thank you. 451 00:24:24,119 --> 00:24:25,800 Speaker 3: Now I want to read out a full list of 452 00:24:25,840 --> 00:24:28,760 Speaker 3: the candidates, of course, who are running for this by 453 00:24:28,840 --> 00:24:33,560 Speaker 3: election in Gordon and Denton. Nick Buckley Advanced UK, Charlotte 454 00:24:33,600 --> 00:24:39,640 Speaker 3: Cadden Conservative Party, Dan Clark Libertarian Party, Matt Goodwin Reform UK, 455 00:24:40,160 --> 00:24:45,840 Speaker 3: Sebastian Moore Social Democratic Party, Joseph o'meecher Rejoin EU Party, 456 00:24:46,359 --> 00:24:51,760 Speaker 3: Jackie Pearcy Liberal Democrats, Hannah Spencer, Green Party, Angeliki Soogia 457 00:24:52,119 --> 00:24:56,560 Speaker 3: Labor Party, Sir einke Loot the Official Monster Raving Looney Party, 458 00:24:56,960 --> 00:24:59,120 Speaker 3: Hugo Wills Communist League. 459 00:24:59,440 --> 00:25:00,159 Speaker 10: I'm Carol, yep. 460 00:25:00,240 --> 00:25:02,360 Speaker 3: Get here in London. You can catch us every weekday 461 00:25:02,400 --> 00:25:04,880 Speaker 3: morning here for Bloomberg Daybreak. You are beginning at six 462 00:25:04,920 --> 00:25:08,240 Speaker 3: am in London. That's at one am on woll Street. Nathan. 463 00:25:08,840 --> 00:25:11,600 Speaker 2: Thanks Caroline, and coming up on Bloomberg day Break weekend. 464 00:25:11,760 --> 00:25:14,400 Speaker 2: India's Prime Minister Narendra Modi is set for a two 465 00:25:14,520 --> 00:25:17,760 Speaker 2: day visit to Israel. We'll look at what to expect next. 466 00:25:18,080 --> 00:25:32,600 Speaker 2: I'm Nathan Hagar, and this is Bloomberg. This is Bloomberg 467 00:25:32,640 --> 00:25:34,840 Speaker 2: day Break Weekend, our global look ahead at the top 468 00:25:34,880 --> 00:25:37,480 Speaker 2: stories for investors in the coming week. I'm Nathan Hagar 469 00:25:37,520 --> 00:25:40,639 Speaker 2: and Washington. Indian Prime Minister Narendromodi is set for a 470 00:25:40,680 --> 00:25:43,040 Speaker 2: two day visit to Israel in the week ahead. For 471 00:25:43,080 --> 00:25:45,720 Speaker 2: a preview, let's get to Doug Krisner, hosted the Bloomberg 472 00:25:45,800 --> 00:25:47,280 Speaker 2: Daybreak Asia podcast. 473 00:25:47,720 --> 00:25:51,200 Speaker 4: Thanks Nathan. This will be Mody's second visit to Israel 474 00:25:51,400 --> 00:25:55,080 Speaker 4: in eight years. Back in July twenty seventeen, he became 475 00:25:55,160 --> 00:25:58,399 Speaker 4: the first Indian Prime minister to travel to Israel with 476 00:25:58,440 --> 00:26:02,879 Speaker 4: a goal of elevating tide. Israeli Prime Minister Benjamin Knyahu 477 00:26:03,040 --> 00:26:06,280 Speaker 4: has said there is a tremendous alliance between these two countries. 478 00:26:06,720 --> 00:26:09,800 Speaker 4: For a closer look, I'm joined by Bloomberg's Rosalind Matheson. 479 00:26:10,160 --> 00:26:14,159 Speaker 4: She is Chief Asia correspondent. Roz joins from our studio 480 00:26:14,320 --> 00:26:17,720 Speaker 4: in Singapore. Thank you for being here. From what I've read, 481 00:26:18,200 --> 00:26:23,520 Speaker 4: NATANYAHUU and Modi are expected to discuss various forms of cooperation. 482 00:26:23,720 --> 00:26:27,600 Speaker 4: Do you have a sense of which areas might be prioritized. 483 00:26:28,280 --> 00:26:32,159 Speaker 12: Two key areas really probably with their conversation. One is 484 00:26:32,240 --> 00:26:36,080 Speaker 12: momentum towards a free trade agreement. I mean, India tends 485 00:26:36,160 --> 00:26:39,400 Speaker 12: to move very slowly on trade deals over many years, 486 00:26:39,480 --> 00:26:43,400 Speaker 12: but they're suddenly in this environment of diversify or die 487 00:26:43,720 --> 00:26:46,840 Speaker 12: around the world on trade, They're rushing to get trade 488 00:26:46,840 --> 00:26:50,159 Speaker 12: deals done. I mean they just did significant trade deals 489 00:26:50,200 --> 00:26:53,200 Speaker 12: with the EU and also with the US, So there 490 00:26:53,240 --> 00:26:56,920 Speaker 12: is movement here on the Israeli front, and their significant 491 00:26:57,200 --> 00:27:01,520 Speaker 12: trade relationship already between the two countries. I mean, Israel's 492 00:27:01,520 --> 00:27:06,680 Speaker 12: a significant buyer of refined petroleum products from India, diamonds 493 00:27:06,680 --> 00:27:11,800 Speaker 12: as well. India is Israel's second biggest trading partner in Asia. 494 00:27:11,800 --> 00:27:15,399 Speaker 12: I think bilateral trade last year was around five billion dollars. 495 00:27:15,440 --> 00:27:17,439 Speaker 12: So there's a lot to talk about on the trade front, 496 00:27:17,520 --> 00:27:20,280 Speaker 12: and there's a lot to talk about on the defense front, 497 00:27:20,520 --> 00:27:24,560 Speaker 12: because India is obviously also moving away from Russia in 498 00:27:24,640 --> 00:27:28,760 Speaker 12: terms of weapons that it buys. It's still its biggest market, 499 00:27:28,920 --> 00:27:32,440 Speaker 12: but it is moving to buy more weapons from the US, 500 00:27:32,480 --> 00:27:34,879 Speaker 12: from France and from Israel, and so there'll be a 501 00:27:34,880 --> 00:27:38,560 Speaker 12: lot of discussion around the potential there around defense, but 502 00:27:38,600 --> 00:27:41,800 Speaker 12: also as part of that technology sharing when it comes 503 00:27:41,840 --> 00:27:45,240 Speaker 12: to defense, and so can they produce stuff together, but 504 00:27:45,320 --> 00:27:47,920 Speaker 12: can they share that technology when they do so. 505 00:27:47,920 --> 00:27:51,720 Speaker 4: So, India, as I understand, is also engaged in more 506 00:27:51,760 --> 00:27:55,439 Speaker 4: outreach to the Arab world. Last month, India hosted the 507 00:27:55,480 --> 00:27:59,280 Speaker 4: second India Arab Foreign Ministers Meeting. And I'm wondering whether 508 00:27:59,359 --> 00:28:02,600 Speaker 4: that necessity fairly complicates in some way Modi's mission. 509 00:28:02,960 --> 00:28:03,760 Speaker 10: Well, yes and no. 510 00:28:04,200 --> 00:28:07,600 Speaker 12: I mean India has been a strong supporter of Israel. 511 00:28:07,800 --> 00:28:13,119 Speaker 12: There's a clear relationship between Urendromod and Benjamin Netanyahu. I 512 00:28:13,119 --> 00:28:15,800 Speaker 12: mean they speak on the phone every couple of months, 513 00:28:15,840 --> 00:28:19,479 Speaker 12: if not each month. And India has supplied Israel with 514 00:28:19,600 --> 00:28:23,000 Speaker 12: drones and been quite a supporter when it comes to 515 00:28:23,080 --> 00:28:27,280 Speaker 12: their actions in Gaza. But also they don't recognize Jerusalem 516 00:28:27,359 --> 00:28:31,440 Speaker 12: as Israel's capital. There are some underlying issues that because 517 00:28:31,520 --> 00:28:34,040 Speaker 12: India above all is trying to maintain this idea still 518 00:28:34,040 --> 00:28:37,560 Speaker 12: a strategic autonomy which they've always tried to walk a 519 00:28:37,560 --> 00:28:40,800 Speaker 12: line on which is to have a balance of relationships. 520 00:28:40,840 --> 00:28:43,280 Speaker 12: And so that does mean do they look to have 521 00:28:43,360 --> 00:28:47,520 Speaker 12: outreach relationships with the Arab world as well? And is 522 00:28:47,560 --> 00:28:50,120 Speaker 12: Iran potentially a factor in all of this because obviously 523 00:28:50,200 --> 00:28:54,440 Speaker 12: there are serious tensions between Israel and Iran. There's the 524 00:28:54,520 --> 00:28:59,880 Speaker 12: specter potentially of US and Israeli intervention again in Ira. 525 00:29:00,360 --> 00:29:02,640 Speaker 12: So what's going to be Mody's message to be be 526 00:29:02,720 --> 00:29:03,160 Speaker 12: about that? 527 00:29:03,560 --> 00:29:06,720 Speaker 4: What about Modi's aim to try to bring in some 528 00:29:06,920 --> 00:29:10,920 Speaker 4: capital from Israel into various sectors of the Indian economy. 529 00:29:11,000 --> 00:29:14,000 Speaker 4: Are there any industries that come to mind. 530 00:29:14,000 --> 00:29:17,720 Speaker 12: Well, certainly there is further opportunity for India around stuff 531 00:29:17,800 --> 00:29:21,800 Speaker 12: like diamonds are already exporting a lot of that to Israel, 532 00:29:21,920 --> 00:29:26,760 Speaker 12: and refined petroleum products that don't sell raw crude to Israel, 533 00:29:26,920 --> 00:29:31,160 Speaker 12: but obviously there's a significant relationship there. So those will 534 00:29:31,200 --> 00:29:33,920 Speaker 12: be the two key things. But obviously they just also 535 00:29:33,960 --> 00:29:36,840 Speaker 12: want to set the table a bit around the parameters 536 00:29:37,080 --> 00:29:41,040 Speaker 12: of this FTA. Doesn't involve services, for example, I mean, 537 00:29:41,040 --> 00:29:44,680 Speaker 12: that's always a thorny issue for India in trade deals 538 00:29:45,160 --> 00:29:47,800 Speaker 12: is services. But it's really going to be probably at 539 00:29:47,800 --> 00:29:51,960 Speaker 12: a higher level around broader understandings when it comes to 540 00:29:52,000 --> 00:29:52,840 Speaker 12: trade and defense. 541 00:29:53,160 --> 00:29:56,440 Speaker 4: Modi is expected to address the Israeli Parliament, the Knesset. 542 00:29:57,040 --> 00:29:59,480 Speaker 4: Do we have a sense of the issues that Modi 543 00:29:59,560 --> 00:30:00,480 Speaker 4: may speak two. 544 00:30:00,560 --> 00:30:03,080 Speaker 12: At this stage, we do not, but we're expecting him 545 00:30:03,120 --> 00:30:06,880 Speaker 12: to talk broadly about fundamental ties and to do so 546 00:30:07,000 --> 00:30:12,360 Speaker 12: with again with some affection, particularly towards Benjamin Netanyahu. I mean, 547 00:30:12,440 --> 00:30:16,080 Speaker 12: BB says that Modi is popular in Israel. They talk 548 00:30:16,120 --> 00:30:18,760 Speaker 12: again on the phone quite often, so there'll be an 549 00:30:18,800 --> 00:30:22,360 Speaker 12: overarching sense of the relationship in that address. If it 550 00:30:22,440 --> 00:30:26,120 Speaker 12: happens to the Kanesset, to the Israeli Parliament. Modi will 551 00:30:26,120 --> 00:30:29,680 Speaker 12: probably want to steer clear of talking about things like 552 00:30:29,720 --> 00:30:32,520 Speaker 12: the West Bank. For example. India's tried not to get 553 00:30:32,560 --> 00:30:36,200 Speaker 12: involved in the issues regarding the West Bank and Israel's 554 00:30:36,240 --> 00:30:40,000 Speaker 12: policies there, so he'll probably steer away from that one. 555 00:30:40,080 --> 00:30:43,160 Speaker 12: He might talk more broadly around the prospects for a 556 00:30:43,200 --> 00:30:46,680 Speaker 12: longer term peace in Gaza and his desire to see 557 00:30:46,680 --> 00:30:49,360 Speaker 12: that happen. Of course, there's a ceasefar in Gaza, but 558 00:30:49,400 --> 00:30:52,000 Speaker 12: there's big questions about how you go from that to 559 00:30:52,040 --> 00:30:55,560 Speaker 12: a more fundamental, long term peace in Gaza and what 560 00:30:55,600 --> 00:30:59,560 Speaker 12: it means in terms of the disarmament of Hamas. For example, 561 00:31:00,120 --> 00:31:02,560 Speaker 12: probably walk a pretty clear line there about not going 562 00:31:02,600 --> 00:31:05,640 Speaker 12: into particularly tricky issues around the West Bank. 563 00:31:06,040 --> 00:31:09,880 Speaker 4: What about the relationship that both India and Israel have 564 00:31:10,240 --> 00:31:13,400 Speaker 4: with the United States and particularly President Trump. 565 00:31:13,680 --> 00:31:15,720 Speaker 12: Well, it's one of those things. We're in this period 566 00:31:15,720 --> 00:31:20,080 Speaker 12: where again, relationships are shifting pretty quickly. Power balances around 567 00:31:20,080 --> 00:31:23,160 Speaker 12: the world are shifting pretty quickly, and again we're seeing 568 00:31:23,200 --> 00:31:25,720 Speaker 12: that in things like trade deals getting done that were 569 00:31:25,800 --> 00:31:29,120 Speaker 12: you know, on hiatus essentially for many years. This idea 570 00:31:29,160 --> 00:31:32,880 Speaker 12: that you have to have a diversification of your relationships, 571 00:31:32,880 --> 00:31:36,440 Speaker 12: and some of that is spurred by the administration of 572 00:31:36,600 --> 00:31:40,440 Speaker 12: Donald Trump. Certainly there have been tensions between the US 573 00:31:40,480 --> 00:31:43,160 Speaker 12: and India. We saw that, really the trade deal went 574 00:31:43,200 --> 00:31:46,480 Speaker 12: into the freezer for some months as a result, you know, 575 00:31:46,560 --> 00:31:50,680 Speaker 12: Donald Trump really pushing India over its purchases of Russian 576 00:31:50,920 --> 00:31:54,680 Speaker 12: energy and singling India out in that and that was really, 577 00:31:54,840 --> 00:31:57,920 Speaker 12: you know, something that Modi couldn't publicly tolerate for his 578 00:31:58,080 --> 00:32:02,040 Speaker 12: prestige at home. That said, the US and India will 579 00:32:02,040 --> 00:32:06,520 Speaker 12: always have a relationship. Modi's just simply about having you know, 580 00:32:06,560 --> 00:32:10,640 Speaker 12: that diversification strategy going. And obviously, you know, Israel and 581 00:32:10,680 --> 00:32:14,080 Speaker 12: the US, BB and Trump have generally a strong relationship. 582 00:32:14,160 --> 00:32:18,280 Speaker 12: The occasional tussle over certain aspects of the Middle East 583 00:32:18,360 --> 00:32:20,840 Speaker 12: but it's a strong relationship, so you can imagine that, 584 00:32:21,000 --> 00:32:24,600 Speaker 12: you know, BB and Modi will talk quite generally in 585 00:32:24,680 --> 00:32:27,040 Speaker 12: warm terms about the US during this trip. 586 00:32:27,160 --> 00:32:31,320 Speaker 4: What do we know about Modi's popularity in Israel? Is 587 00:32:31,360 --> 00:32:33,480 Speaker 4: he a widely popular politician? 588 00:32:33,760 --> 00:32:33,880 Speaker 1: Well? 589 00:32:33,920 --> 00:32:37,600 Speaker 12: Yes, according to BB, the Israeli leader, I mean, Mody 590 00:32:37,840 --> 00:32:41,800 Speaker 12: was the first India Prime minister to visit Israel back 591 00:32:41,840 --> 00:32:44,120 Speaker 12: in twenty seventeen. I think he had a flower named 592 00:32:44,120 --> 00:32:47,360 Speaker 12: after him as a chrysanthemum at the time. So there 593 00:32:47,440 --> 00:32:50,560 Speaker 12: is this kind of strong history of cooperation. They've had 594 00:32:50,640 --> 00:32:55,400 Speaker 12: full diplomatic ties between the countries for some decades, and 595 00:32:55,440 --> 00:32:58,880 Speaker 12: Mody is quite popular in Israel as a result, and 596 00:32:58,920 --> 00:33:02,120 Speaker 12: seen as someone who you know, hasn't been overtly critical 597 00:33:02,400 --> 00:33:07,160 Speaker 12: of Israel over its actions in Gaza, the conflict in Gaza. 598 00:33:07,280 --> 00:33:09,880 Speaker 12: He can expect to have a very warm welcome, including 599 00:33:09,920 --> 00:33:10,479 Speaker 12: by the Parliament. 600 00:33:10,560 --> 00:33:13,360 Speaker 4: I'm wondering whether China will come up as a part 601 00:33:13,440 --> 00:33:14,760 Speaker 4: of these discussions as well. 602 00:33:14,920 --> 00:33:18,200 Speaker 12: Yeah, certainly. Again, China is like China, the US other 603 00:33:18,240 --> 00:33:21,520 Speaker 12: great powers are always in the backdrop in these conversations 604 00:33:21,720 --> 00:33:24,280 Speaker 12: at the moment in terms of how you're balancing your 605 00:33:24,320 --> 00:33:28,840 Speaker 12: relationships and India again trying for this idea of strategic autonomy. 606 00:33:28,920 --> 00:33:32,240 Speaker 12: I mean, relationships between India and China go up and 607 00:33:32,280 --> 00:33:34,760 Speaker 12: they go can go down quite a bit, but they've 608 00:33:34,800 --> 00:33:37,320 Speaker 12: been on a warmer track in the past year or so, 609 00:33:37,560 --> 00:33:40,640 Speaker 12: driven in part by the tensions that India's had separately 610 00:33:41,040 --> 00:33:43,880 Speaker 12: with the US. So there's a pragmatism that comes into 611 00:33:44,000 --> 00:33:48,600 Speaker 12: all these relationships, including with China, and the sense of 612 00:33:48,640 --> 00:33:51,640 Speaker 12: what's China going to be doing around the Middle East, 613 00:33:52,000 --> 00:33:56,400 Speaker 12: developing its own business and trade ties, including with Arab nations, 614 00:33:56,560 --> 00:33:59,120 Speaker 12: and what does that lead to. So certainly it's in 615 00:33:59,160 --> 00:34:02,880 Speaker 12: the atmosphere these conversations, but there is a sense from 616 00:34:02,920 --> 00:34:05,720 Speaker 12: both Israel and a India in a way that these 617 00:34:05,720 --> 00:34:07,800 Speaker 12: things need to be done in a very pragmatic fashion. 618 00:34:07,920 --> 00:34:10,640 Speaker 4: What about the area of agriculture. Is there much in 619 00:34:10,680 --> 00:34:13,839 Speaker 4: the way of trade exchange between these two countries where 620 00:34:13,920 --> 00:34:15,760 Speaker 4: agricultural products are involved? 621 00:34:16,000 --> 00:34:19,400 Speaker 12: Not a ton, And agriculture is just a very thorny 622 00:34:19,440 --> 00:34:23,960 Speaker 12: issue for India again, like other countries, You've got in 623 00:34:24,000 --> 00:34:27,440 Speaker 12: a way this kind of mythical image of the India farmer, 624 00:34:27,840 --> 00:34:31,480 Speaker 12: and they are a very powerful voting block in India, 625 00:34:31,520 --> 00:34:34,680 Speaker 12: and you can see that Modi being very cautious about 626 00:34:35,440 --> 00:34:39,440 Speaker 12: moving away from subsidies for farm products in India or 627 00:34:39,560 --> 00:34:43,960 Speaker 12: trade deals that might disadvantage the farmers of his country, 628 00:34:44,120 --> 00:34:48,200 Speaker 12: and he's very achuned to that and his own popularity. 629 00:34:48,520 --> 00:34:51,040 Speaker 12: So they've tended to be quite protective, i would say, 630 00:34:51,120 --> 00:34:54,399 Speaker 12: of the India agricultural market, so very cautious about doing 631 00:34:54,480 --> 00:34:55,400 Speaker 12: deals as a result. 632 00:34:55,800 --> 00:34:59,200 Speaker 4: So from what I understand, Riz and Israeli delegation will 633 00:34:59,239 --> 00:35:03,600 Speaker 4: be leaving for New Delhi on Monday of next week 634 00:35:03,880 --> 00:35:07,800 Speaker 4: for a first round of kind of trade agreement talks. 635 00:35:08,200 --> 00:35:11,760 Speaker 4: So it seems like both sides are working at trying 636 00:35:11,760 --> 00:35:14,919 Speaker 4: to achieve something. Is there, in your mind a timeline 637 00:35:14,920 --> 00:35:18,040 Speaker 4: here as to when something needs to be kind of 638 00:35:18,040 --> 00:35:20,279 Speaker 4: agreed upon or is this going to be a kind 639 00:35:20,280 --> 00:35:23,400 Speaker 4: of a protracted, longer term project. 640 00:35:23,640 --> 00:35:25,879 Speaker 12: Well, there is a sense that things are picking up. 641 00:35:26,120 --> 00:35:30,239 Speaker 12: You had ministerial delegations going back and forth last year, 642 00:35:30,960 --> 00:35:33,520 Speaker 12: as you say this, an Israeli delegation due and New 643 00:35:33,560 --> 00:35:36,440 Speaker 12: Delhi in the coming week that's supposed to be sort 644 00:35:36,440 --> 00:35:39,319 Speaker 12: of technical talks, and it's the first round of those 645 00:35:39,360 --> 00:35:43,080 Speaker 12: technical talks. There was a framework agreement that was signed 646 00:35:43,160 --> 00:35:45,359 Speaker 12: last November, but it's a framework and there's a lot 647 00:35:45,360 --> 00:35:48,239 Speaker 12: of work to be done here as a result, but 648 00:35:48,320 --> 00:35:51,760 Speaker 12: you really do get the sense of momentum on both sides, 649 00:35:51,840 --> 00:35:54,800 Speaker 12: and some of the officials are saying that they're aiming 650 00:35:54,840 --> 00:35:56,719 Speaker 12: for a deal potentially at some point this year. 651 00:35:57,080 --> 00:35:58,799 Speaker 4: ROS will leave it there. Thank you so much for 652 00:35:58,840 --> 00:36:02,400 Speaker 4: helping us preview Prime Minister Modi's visit to Israel. That 653 00:36:02,520 --> 00:36:06,320 Speaker 4: is Bloomberg's Rasal and Matheson, our chief Asia correspondent, joining 654 00:36:06,400 --> 00:36:10,040 Speaker 4: us from Singapore. In the last week, India hosted an 655 00:36:10,160 --> 00:36:14,000 Speaker 4: artificial intelligence summit. It was there that Prime Minister Modi 656 00:36:14,080 --> 00:36:17,799 Speaker 4: said the event offered further proof that India is progressing 657 00:36:17,920 --> 00:36:21,920 Speaker 4: rapidly in the fields of science and technology. At the summit, 658 00:36:21,960 --> 00:36:25,920 Speaker 4: Bloomberg spoke with Arthur Mensch of the French firm mistral Ai, 659 00:36:26,320 --> 00:36:29,680 Speaker 4: and he addressed the Indian market for artificial intelligence. 660 00:36:29,920 --> 00:36:32,959 Speaker 11: So what we see is that on the infrastructure side, 661 00:36:33,200 --> 00:36:37,400 Speaker 11: India has taken a strong stance on the sovereignty and 662 00:36:37,480 --> 00:36:40,520 Speaker 11: so that's a place where we can play an important 663 00:36:40,600 --> 00:36:43,399 Speaker 11: role because the platform we bring is something that every 664 00:36:43,400 --> 00:36:46,480 Speaker 11: state we work with can actually customize. So in that aspect, 665 00:36:47,200 --> 00:36:49,520 Speaker 11: I believe there are a lot of synergies in between 666 00:36:49,560 --> 00:36:52,879 Speaker 11: what we can provide and what India already has. They 667 00:36:52,880 --> 00:36:56,479 Speaker 11: have taken some step in training models themselves as well. Again, 668 00:36:56,520 --> 00:36:59,000 Speaker 11: this is a place where the open source media that 669 00:36:59,040 --> 00:37:02,040 Speaker 11: we can provide can play because they can be used 670 00:37:02,080 --> 00:37:04,760 Speaker 11: as a basis to make models better at certain languages. 671 00:37:05,000 --> 00:37:07,360 Speaker 11: This is something that we actively do with certain states, 672 00:37:07,360 --> 00:37:09,520 Speaker 11: that we've done with Singapore, that we are doing with Morocco. 673 00:37:10,080 --> 00:37:13,160 Speaker 11: We've released a model last year called miss Calsaba which 674 00:37:13,160 --> 00:37:16,520 Speaker 11: is specifically good at Indian languages in texts, and so 675 00:37:16,560 --> 00:37:20,200 Speaker 11: that's something that we can improve through partnerships with Indian 676 00:37:20,239 --> 00:37:23,080 Speaker 11: companies that have access to more data. The audio models 677 00:37:23,120 --> 00:37:25,920 Speaker 11: that we've released, Vauxcral in particular, is very strong at 678 00:37:25,920 --> 00:37:28,960 Speaker 11: Indian language. We see audio as a big way in 679 00:37:29,000 --> 00:37:32,880 Speaker 11: which the consumer market in India engage with technology, and 680 00:37:32,960 --> 00:37:36,600 Speaker 11: so again that's a place where partnerships can actually take 681 00:37:36,680 --> 00:37:39,560 Speaker 11: us much further because we can provide the technology and 682 00:37:39,600 --> 00:37:42,000 Speaker 11: the training stack and the GPUs and the people that 683 00:37:42,120 --> 00:37:45,120 Speaker 11: know how to train models. But what we could benefit 684 00:37:45,160 --> 00:37:48,120 Speaker 11: from and what we could partner on is access to data, 685 00:37:48,200 --> 00:37:50,600 Speaker 11: access to the consumer market so that we can make 686 00:37:50,640 --> 00:37:52,840 Speaker 11: that technology better and give it put it in the 687 00:37:52,880 --> 00:37:55,000 Speaker 11: hands of, for instance, the Indian government. 688 00:37:55,120 --> 00:37:57,920 Speaker 4: That was Arthur Mensch from the French firm mistral Ai, 689 00:37:58,360 --> 00:38:01,759 Speaker 4: speaking to Bloomberg at the inn AI Impact Summit in 690 00:38:01,840 --> 00:38:04,760 Speaker 4: New Delhi. I'm Doug Prisner. You can catch us weekdays 691 00:38:04,760 --> 00:38:08,160 Speaker 4: for the Daybreak Asia podcast. It's available wherever you get 692 00:38:08,160 --> 00:38:08,920 Speaker 4: your podcast. 693 00:38:09,360 --> 00:38:12,359 Speaker 2: Nathan, Thanks Doug, and that does it for this edition 694 00:38:12,440 --> 00:38:15,239 Speaker 2: of Bloomberg day Break Weekend. Join us again Monday morning 695 00:38:15,320 --> 00:38:17,520 Speaker 2: at five am Wall Street Time for the latest on 696 00:38:17,640 --> 00:38:20,439 Speaker 2: markets overseas and the news you need to start your day. 697 00:38:20,680 --> 00:38:21,520 Speaker 2: I'm Nathan Hager. 698 00:38:21,719 --> 00:38:22,319 Speaker 5: Stay with us. 699 00:38:22,440 --> 00:38:26,480 Speaker 2: Top stories and global business headlines are coming up right now.