1
00:00:03,400 --> 00:00:07,120
Speaker 1: This is Bloomberg Daybreak for this Wednesday, February in London.

2
00:00:07,240 --> 00:00:10,240
Speaker 1: Coming up today, down but still in double digits. The

3
00:00:10,320 --> 00:00:15,160
Speaker 1: UK's price rise pain continues, pivot pushed back, traders abandoned

4
00:00:15,160 --> 00:00:18,279
Speaker 1: bets on a fed rate cart. All that glitters isn't.

5
00:00:18,320 --> 00:00:21,159
Speaker 1: Goldman David Solomon says the bank expects to reign in

6
00:00:21,280 --> 00:00:26,040
Speaker 1: hiring sooner, considers back dating. Paid Bosonaro plans are returned

7
00:00:26,040 --> 00:00:29,240
Speaker 1: to Brazil and it's to a billion dollar lottery win.

8
00:00:29,360 --> 00:00:31,920
Speaker 1: Those are the stories we're looking at in today's papers.

9
00:00:31,920 --> 00:00:35,320
Speaker 1: And I'm Leanne Gern's plus in search of more followers,

10
00:00:35,320 --> 00:00:39,280
Speaker 1: and reports emerged that you Musque tweaked the algorithm to

11
00:00:39,400 --> 00:00:45,040
Speaker 1: boost his own tweets. That's all straight ahead on Bloomberg

12
00:00:45,120 --> 00:00:47,879
Speaker 1: Daybreak Europe. The business news you need to start your

13
00:00:47,920 --> 00:00:51,840
Speaker 1: day in just one fifteen minute podcast on Apple, Spotify,

14
00:00:52,120 --> 00:00:55,760
Speaker 1: the Bloomberg Business App and everywhere you get your podcasts.

15
00:00:58,440 --> 00:01:01,440
Speaker 1: Good morning, I'm Stephen Carroll, I'm Caroline Hecker. Here are

16
00:01:01,520 --> 00:01:06,800
Speaker 1: the stories that we're following today. UK inflation for January

17
00:01:06,800 --> 00:01:10,120
Speaker 1: consumer prices rose ten point one percent year or year.

18
00:01:10,160 --> 00:01:12,880
Speaker 1: The estimate was for ten point three percent, so that

19
00:01:13,000 --> 00:01:16,000
Speaker 1: looks to be in line with estimates. Overall headline CPI

20
00:01:16,080 --> 00:01:20,360
Speaker 1: inflation likely to edge down over three but the figure

21
00:01:20,600 --> 00:01:24,440
Speaker 1: out this morning consumer prices rising ten point one percent

22
00:01:24,800 --> 00:01:29,640
Speaker 1: for January. That's the breaking news lines In terms of

23
00:01:29,880 --> 00:01:32,560
Speaker 1: the Federal Reserve. Traders are abandoning bets that the FED

24
00:01:33,000 --> 00:01:35,560
Speaker 1: is about to cut rates, with two year treasury yields

25
00:01:35,640 --> 00:01:39,320
Speaker 1: rising above four point five percent. The market rethink comes

26
00:01:39,360 --> 00:01:42,920
Speaker 1: after data showed consumer prices in America rose six point

27
00:01:42,959 --> 00:01:45,880
Speaker 1: four percent in January compared to a year earlier. Speaking

28
00:01:45,920 --> 00:01:50,000
Speaker 1: exclusively to Bloomberg, Richmond FED President Thomas Barkin says that

29
00:01:50,040 --> 00:01:53,040
Speaker 1: the central bank will hike higher if needed. We may

30
00:01:53,120 --> 00:01:55,720
Speaker 1: or may not choose to take rates up further if

31
00:01:55,840 --> 00:01:58,520
Speaker 1: inflation continues to persist, but we'll have to see what happens.

32
00:01:58,560 --> 00:02:01,400
Speaker 1: If inflation settles, maybe we don't go quite as far.

33
00:02:01,480 --> 00:02:04,400
Speaker 1: But of inflation per suss A levels well above our

34
00:02:04,480 --> 00:02:07,600
Speaker 1: our target, may we'll have to do more. Barkin's view

35
00:02:07,640 --> 00:02:10,920
Speaker 1: was echoed elsewhere by the Dallas FED President Laurie Logan,

36
00:02:11,000 --> 00:02:13,960
Speaker 1: who says that rate rises maybe needed for a longer

37
00:02:14,000 --> 00:02:17,560
Speaker 1: period than previously anticipated. Some of the latest corporate news

38
00:02:17,600 --> 00:02:20,239
Speaker 1: regretting this morning from Barkley's first of all in the UK.

39
00:02:20,360 --> 00:02:24,200
Speaker 1: It's fourth quarters c ib revenue coming in below expectations

40
00:02:24,480 --> 00:02:27,880
Speaker 1: for two point five eight billion pounds for the fourth quarter.

41
00:02:27,960 --> 00:02:31,320
Speaker 1: The estimate had been for almost two point eight billion pounds.

42
00:02:31,320 --> 00:02:34,200
Speaker 1: That's quite a big miss on c ib revenue from

43
00:02:34,240 --> 00:02:37,880
Speaker 1: Barclays as well their cost income ratio. They're targeting a

44
00:02:37,919 --> 00:02:42,959
Speaker 1: presentation the low sixties for this year. The credit impairment

45
00:02:43,000 --> 00:02:45,800
Speaker 1: charge in the fourth quarter higher than expected just under

46
00:02:45,840 --> 00:02:48,040
Speaker 1: half a billion pounds. The estimate have been for four

47
00:02:48,120 --> 00:02:53,639
Speaker 1: hundred and sixty six million. Once considered uninvestable, Chinese stocks

48
00:02:53,639 --> 00:02:56,240
Speaker 1: have become a must have for hedge funds again. The

49
00:02:56,320 --> 00:02:59,280
Speaker 1: latest US filings show that they loaded up on the

50
00:02:59,360 --> 00:03:03,480
Speaker 1: chares last quarter as Beijing abandoned its COVID zero policy.

51
00:03:03,840 --> 00:03:06,840
Speaker 1: Even Michael Burry, the money manager made famous by The

52
00:03:06,840 --> 00:03:10,360
Speaker 1: Big Short, is going along. Meanwhile, Berkshire Hathaway has provided

53
00:03:10,400 --> 00:03:12,760
Speaker 1: an update on what it's holding, and it's been bulking

54
00:03:12,800 --> 00:03:15,960
Speaker 1: up its position in Apple, the story from Bloomberg's Charlie Palace.

55
00:03:16,800 --> 00:03:20,920
Speaker 1: In addition, Berkshire expanded its stakes in Paramount Global and

56
00:03:21,040 --> 00:03:25,000
Speaker 1: Louisiana Pacific Corp. In the last three months of two,

57
00:03:25,480 --> 00:03:28,359
Speaker 1: according to a regulatory filing. At the same time, Berkshire

58
00:03:28,400 --> 00:03:31,920
Speaker 1: trimmed as some of its financial holdings, including its stakes

59
00:03:31,919 --> 00:03:36,040
Speaker 1: in US BANKORPS, Bank of New York, Melon and Ally Financial.

60
00:03:36,400 --> 00:03:40,480
Speaker 1: The remainder of the company's portfolio was largely unchanged in

61
00:03:40,600 --> 00:03:45,040
Speaker 1: New York. Charlie Palett Bloomberg Daybreak Europe. Now, after a

62
00:03:45,120 --> 00:03:48,640
Speaker 1: record slew of job cuts, Goldman sacks Is CEO David

63
00:03:48,680 --> 00:03:51,800
Speaker 1: Solomon says that the bank plans to have stricter hiring

64
00:03:51,840 --> 00:03:55,080
Speaker 1: policies going forwards. He told a credit sweet confidence that

65
00:03:55,160 --> 00:03:59,960
Speaker 1: cutting costs is a key focus for him. We are

66
00:04:00,040 --> 00:04:02,360
Speaker 1: a position to lower the head count of the firm.

67
00:04:02,400 --> 00:04:05,360
Speaker 1: We've taken some action. Um, we have a much tighter

68
00:04:05,440 --> 00:04:08,840
Speaker 1: hiring plan in three and then attrition rolls through and

69
00:04:08,880 --> 00:04:12,080
Speaker 1: so that also helps and creates more cost leverage. I

70
00:04:12,080 --> 00:04:14,520
Speaker 1: think we're very targeted and focused and we'll be in

71
00:04:14,520 --> 00:04:18,839
Speaker 1: a good place. Speaking at the same confidence as Solomon,

72
00:04:18,880 --> 00:04:23,280
Speaker 1: the JP Morgan chief financial officer Jeremy Barnum also struck

73
00:04:23,360 --> 00:04:29,240
Speaker 1: a pessimistic tone. Elon Musk has reportedly had Twitter's engineers

74
00:04:29,800 --> 00:04:32,960
Speaker 1: altered the social media's algorithm so that his own tweets

75
00:04:33,000 --> 00:04:36,120
Speaker 1: got more views, according to platform Or. The billionaire owner

76
00:04:36,320 --> 00:04:38,440
Speaker 1: for the firm was unhappy with the number of views

77
00:04:38,480 --> 00:04:41,480
Speaker 1: his Super Bowl tweet got. Musk also says he wants

78
00:04:41,520 --> 00:04:44,760
Speaker 1: to find a successor to lead Twitter this year. Speaking

79
00:04:44,760 --> 00:04:46,839
Speaker 1: at the World Government Summers in Dubai, he told an

80
00:04:46,880 --> 00:04:49,320
Speaker 1: audience when he plans over plans to hand over the

81
00:04:49,400 --> 00:04:53,200
Speaker 1: reins of power at the social media firm, I think

82
00:04:53,240 --> 00:04:56,479
Speaker 1: I need to stabilize the organization and just make sure

83
00:04:56,600 --> 00:05:00,520
Speaker 1: it's in a financially healthy place in the park. Road

84
00:05:00,560 --> 00:05:03,560
Speaker 1: map is clearly laid out, so I don't know. I'm

85
00:05:03,600 --> 00:05:06,240
Speaker 1: guessing probably towards the end of this year, which we

86
00:05:06,240 --> 00:05:09,720
Speaker 1: should would be good timing to find someone else to

87
00:05:09,800 --> 00:05:11,360
Speaker 1: run the company, because I think it should be in

88
00:05:11,400 --> 00:05:14,039
Speaker 1: a stable position around you know, at the end of

89
00:05:14,040 --> 00:05:17,080
Speaker 1: this year. That was Twitter CEO and owner Elon Musk

90
00:05:17,160 --> 00:05:20,320
Speaker 1: speaking of the World Government Summit in Dubai. There just

91
00:05:20,400 --> 00:05:23,560
Speaker 1: one more piece of corporate news that's coming to us

92
00:05:23,760 --> 00:05:28,279
Speaker 1: this morning. Glen Core Fullier revenue missing estimates. The company

93
00:05:28,279 --> 00:05:32,000
Speaker 1: planning a forty cent per share based distribution. That's a

94
00:05:32,080 --> 00:05:34,360
Speaker 1: one and a half billion dollar share buy back. That

95
00:05:34,440 --> 00:05:36,520
Speaker 1: had been the key number we had been waiting for

96
00:05:37,120 --> 00:05:39,760
Speaker 1: from Glenn Clore. It's fullier adjusted EBIT dark coming in

97
00:05:40,400 --> 00:05:43,760
Speaker 1: just slightly below estimates thirty four point zero six billion dollars.

98
00:05:43,800 --> 00:05:47,400
Speaker 1: The estimate have been thirty four point zero nine billion. Okay,

99
00:05:47,440 --> 00:05:50,240
Speaker 1: those are top stories. Now let's get some more detail

100
00:05:50,279 --> 00:05:53,320
Speaker 1: though on the inflation picture. So year on year the

101
00:05:53,400 --> 00:05:58,840
Speaker 1: CPI number rises ten point one percent. For January month

102
00:05:58,920 --> 00:06:02,240
Speaker 1: or month you see the line of the CPI figured

103
00:06:02,279 --> 00:06:05,640
Speaker 1: down six tenths of one per cent, So a little

104
00:06:05,680 --> 00:06:09,080
Speaker 1: bit of easing in terms of inflation here in the UK,

105
00:06:09,320 --> 00:06:13,159
Speaker 1: and yet it remains the central issue for the Central

106
00:06:13,160 --> 00:06:15,880
Speaker 1: Bank and government. Joining us now is Martin mactagg who

107
00:06:15,920 --> 00:06:18,760
Speaker 1: is the National chair of the Federation of Small Businesses. Martin,

108
00:06:18,800 --> 00:06:23,479
Speaker 1: welcome to Bloombergh Grade DEO. Welcome, thank you. So just

109
00:06:23,600 --> 00:06:27,040
Speaker 1: first of all, do you and your members small businesses

110
00:06:27,080 --> 00:06:29,840
Speaker 1: across the across the UK see signs that inflation is

111
00:06:29,839 --> 00:06:35,480
Speaker 1: actually easing. No, there aren't really any signs at our

112
00:06:35,600 --> 00:06:38,880
Speaker 1: level of the of the economy. I mean, what we're

113
00:06:38,960 --> 00:06:44,719
Speaker 1: seeing is labor very tight, cash very very very tight

114
00:06:44,880 --> 00:06:48,120
Speaker 1: in small businesses, which means that they're then having to

115
00:06:48,240 --> 00:06:52,840
Speaker 1: pass on some of their increases they're getting through from suppliers,

116
00:06:52,920 --> 00:06:58,080
Speaker 1: and it's it means that inflation in businesses is running

117
00:06:58,080 --> 00:07:02,640
Speaker 1: at roughly twice is the headline rate. And although this

118
00:07:02,760 --> 00:07:07,720
Speaker 1: is welcome that we're getting some easing in inflation, I

119
00:07:07,760 --> 00:07:11,720
Speaker 1: think it's a long way from the point where a

120
00:07:11,760 --> 00:07:16,040
Speaker 1: lot of small businesses will feel comfortable. How are your

121
00:07:16,080 --> 00:07:20,040
Speaker 1: members coping with interest rates where they are now? We've

122
00:07:20,080 --> 00:07:25,120
Speaker 1: had ten rate increases in a row. Well, many of

123
00:07:25,160 --> 00:07:28,120
Speaker 1: them are on fixed rate deals, but there is a

124
00:07:28,240 --> 00:07:32,040
Speaker 1: large proportion and some of the most warring ones are

125
00:07:32,080 --> 00:07:35,400
Speaker 1: the ones that accepted the Saballs deal, which is part

126
00:07:35,440 --> 00:07:39,920
Speaker 1: of the COVID arrangements. They are they are not on

127
00:07:40,120 --> 00:07:44,960
Speaker 1: fixed rate deals, and because they've necessarily gone through some

128
00:07:45,360 --> 00:07:49,320
Speaker 1: pretty difficult times over the COVID period, I think they're

129
00:07:49,320 --> 00:07:51,600
Speaker 1: going to really struggle. So you've got a quite a

130
00:07:53,160 --> 00:07:57,280
Speaker 1: batch of companies that are in difficulty that it is

131
00:07:57,400 --> 00:08:03,960
Speaker 1: very sector specific. I think hospitality retail are the ones

132
00:08:04,000 --> 00:08:07,880
Speaker 1: that have got the biggest problems, and because of that,

133
00:08:08,200 --> 00:08:11,200
Speaker 1: the banks are tending to edge up the interest rates

134
00:08:11,200 --> 00:08:14,920
Speaker 1: on those, you know, customers in that sector, and I

135
00:08:14,960 --> 00:08:18,440
Speaker 1: think that's going to cause even more problems. Okay um

136
00:08:18,680 --> 00:08:21,160
Speaker 1: I mean, the expectation there is for more rate heights

137
00:08:21,200 --> 00:08:24,280
Speaker 1: on the Bank of England to come. Um, surely that

138
00:08:24,320 --> 00:08:26,880
Speaker 1: has to happen to try to get inflation under control.

139
00:08:27,200 --> 00:08:31,800
Speaker 1: What happens this year to your members? Yeah, I understand

140
00:08:31,840 --> 00:08:36,000
Speaker 1: the need to try and get inflation down, but especially

141
00:08:36,040 --> 00:08:39,480
Speaker 1: the most vulnerable members are going to struggle. And I

142
00:08:39,520 --> 00:08:44,480
Speaker 1: think for us, the most important event in the next

143
00:08:44,520 --> 00:08:48,280
Speaker 1: few weeks is going to be the budget. I think

144
00:08:48,320 --> 00:08:51,840
Speaker 1: what the government has to recognize that in the past,

145
00:08:52,640 --> 00:08:56,080
Speaker 1: the only people have been able to rescue the economy

146
00:08:56,160 --> 00:08:59,160
Speaker 1: from recession have been the smaller businesses in the UK.

147
00:09:00,360 --> 00:09:06,240
Speaker 1: That's a consistent pattern over the last four recessions. And

148
00:09:06,360 --> 00:09:09,360
Speaker 1: if they really are serious about making sure that they

149
00:09:09,400 --> 00:09:12,840
Speaker 1: recover they see some sort of bounce, they're going to

150
00:09:13,000 --> 00:09:16,120
Speaker 1: have to help these businesses. What sort of help do

151
00:09:16,160 --> 00:09:20,360
Speaker 1: you want to see? Well, the most important help would

152
00:09:20,360 --> 00:09:24,440
Speaker 1: probably be helped to try and improve the very poor

153
00:09:24,480 --> 00:09:27,600
Speaker 1: culture of late payment that exists in the UK. UM.

154
00:09:28,320 --> 00:09:32,000
Speaker 1: We have said consistently over many years that this is

155
00:09:32,040 --> 00:09:36,160
Speaker 1: a major problem. The average small business has to use

156
00:09:36,200 --> 00:09:41,840
Speaker 1: about twice its normal working capital just to fund poor

157
00:09:41,880 --> 00:09:46,320
Speaker 1: payment practices from their major customers. And we know the

158
00:09:46,360 --> 00:09:49,199
Speaker 1: government can do more to make this a much more

159
00:09:49,320 --> 00:09:53,440
Speaker 1: visible thing and put pressure on the largest businesses to

160
00:09:53,480 --> 00:09:58,400
Speaker 1: behave better. So far they've been reluctant to do it. Okay,

161
00:09:58,440 --> 00:10:00,199
Speaker 1: you've asked for a number of other things, things that

162
00:10:00,240 --> 00:10:02,680
Speaker 1: I've read about, for example, on business rates. You want

163
00:10:02,679 --> 00:10:05,839
Speaker 1: those to be changed, reduced, dropped. You also want more

164
00:10:05,920 --> 00:10:11,120
Speaker 1: childcare provision plus five thousand pounds to help businesses become greener.

165
00:10:11,320 --> 00:10:14,400
Speaker 1: I suppose. My My overriding question is to expect any

166
00:10:14,480 --> 00:10:16,640
Speaker 1: of that to be delivered by the chance that in

167
00:10:16,679 --> 00:10:20,880
Speaker 1: this budget, when you know the priorities are so difficult

168
00:10:20,920 --> 00:10:25,840
Speaker 1: for the Sunac Hunt government. Yeah, I understand their difficulties.

169
00:10:25,880 --> 00:10:30,079
Speaker 1: But if you take, for example, our ask on business rates,

170
00:10:30,559 --> 00:10:34,680
Speaker 1: which is one of the most pernicious taxes that most

171
00:10:34,679 --> 00:10:38,679
Speaker 1: small businesses faced. They they supper at tax, whether they're

172
00:10:38,679 --> 00:10:43,560
Speaker 1: making profits or not. They were suggesting that, look, because

173
00:10:44,000 --> 00:10:50,559
Speaker 1: the smallest businesses with bricks and mortar are the most vulnerable,

174
00:10:50,960 --> 00:10:55,360
Speaker 1: that what they should do is increase the relief and

175
00:10:55,360 --> 00:10:58,040
Speaker 1: and the threshold at which people start to pay small

176
00:10:58,040 --> 00:11:02,480
Speaker 1: business up to twenty five thousand, and that just means

177
00:11:01,920 --> 00:11:05,680
Speaker 1: a modest increase for some of the largest retailers and

178
00:11:05,760 --> 00:11:09,480
Speaker 1: the largest businesses in the UK. I'm wondering for those

179
00:11:09,920 --> 00:11:12,280
Speaker 1: of your members that are consumer facing, what are they

180
00:11:12,280 --> 00:11:15,560
Speaker 1: seeing in terms of consumers reigning in their spending. Is

181
00:11:15,640 --> 00:11:19,520
Speaker 1: that having a marked effect on their business? Yes, it is.

182
00:11:19,600 --> 00:11:24,720
Speaker 1: Anybody who's consumer facing is seeing people either looking for

183
00:11:25,920 --> 00:11:29,360
Speaker 1: lower cost alternatives. There's there's a lot of evidence of

184
00:11:29,480 --> 00:11:35,040
Speaker 1: people trading down, going for the cheaper alternative, and and

185
00:11:35,160 --> 00:11:39,320
Speaker 1: doing and using less of the sort of optional spends.

186
00:11:40,400 --> 00:11:45,960
Speaker 1: You know, hairdresses are reporting downturn in in in volumes. Pubs,

187
00:11:46,160 --> 00:11:50,520
Speaker 1: restaurants and these things are a major part of our

188
00:11:50,559 --> 00:11:54,480
Speaker 1: economy because consumption is such a big part of what

189
00:11:54,679 --> 00:11:59,560
Speaker 1: makes up, you know, our annual GDP. I'm on a

190
00:11:59,720 --> 00:12:03,720
Speaker 1: set matter again around inflation, but this someone wages the

191
00:12:03,760 --> 00:12:07,120
Speaker 1: f T. We're reporting this morning that perhaps the Prime

192
00:12:07,120 --> 00:12:10,880
Speaker 1: Minister and the Chancellor were considering a backdated payoffer. Bloomberg's

193
00:12:10,920 --> 00:12:13,080
Speaker 1: Joe Mays has now got a piece out on the

194
00:12:13,160 --> 00:12:16,160
Speaker 1: terminal a government officials saying no, the UK is not

195
00:12:16,320 --> 00:12:20,720
Speaker 1: considering backdating pay rises for NHS staff. There is this

196
00:12:20,800 --> 00:12:24,120
Speaker 1: idea though that whatever happens with public sector pay, you know,

197
00:12:24,200 --> 00:12:28,959
Speaker 1: if it goes up, then this will have a significant

198
00:12:29,000 --> 00:12:33,000
Speaker 1: impact on on the private sector to the government doesn't

199
00:12:33,000 --> 00:12:36,280
Speaker 1: want to give nurses more money because it could basically

200
00:12:36,679 --> 00:12:39,560
Speaker 1: push up pay demands elsewhere. Is that an argument that

201
00:12:39,600 --> 00:12:43,720
Speaker 1: you would agree with? Yeah, I mean, I think the

202
00:12:43,800 --> 00:12:47,240
Speaker 1: public sector pay is completely separate argument. It's whether the

203
00:12:47,280 --> 00:12:51,560
Speaker 1: government is prepared to pay the increases and it will

204
00:12:51,600 --> 00:12:55,640
Speaker 1: inevitively mean either tax agent or borrowing more money. That

205
00:12:55,840 --> 00:13:02,040
Speaker 1: the issue for business is they can only take lower

206
00:13:02,160 --> 00:13:05,160
Speaker 1: margins or pass it on to their customers, and that

207
00:13:05,240 --> 00:13:10,800
Speaker 1: means generally means with small businesses, it means less investment.

208
00:13:11,000 --> 00:13:16,320
Speaker 1: It means it limits their ability to try and get

209
00:13:16,320 --> 00:13:20,040
Speaker 1: out of this situation and grow their businesses and improve

210
00:13:20,160 --> 00:13:22,400
Speaker 1: the chances that we're going to get out of this

211
00:13:23,080 --> 00:13:26,800
Speaker 1: recession as quickly as possible. So I think the government

212
00:13:26,960 --> 00:13:30,439
Speaker 1: has to recognize that the two things of all the

213
00:13:30,520 --> 00:13:35,160
Speaker 1: reason link. They are totally separate issues, and they should

214
00:13:35,240 --> 00:13:38,520
Speaker 1: be more focused on those businesses that are going to

215
00:13:38,640 --> 00:13:42,600
Speaker 1: rescue the country from what I can see is a

216
00:13:42,679 --> 00:13:47,080
Speaker 1: long and shallow recession. Okay, Martin mctag, national chair of

217
00:13:47,120 --> 00:13:49,120
Speaker 1: the Federation of Small Business says thank you very much

218
00:13:49,120 --> 00:13:52,160
Speaker 1: for joining us this morning. Yeah, just to reiterate those

219
00:13:52,160 --> 00:13:55,600
Speaker 1: that UK inflation figures CPI rises a ten point one

220
00:13:55,679 --> 00:13:59,160
Speaker 1: percent from a year ago in January and the full

221
00:13:59,559 --> 00:14:03,000
Speaker 1: is more than expected because fuel prices are down even

222
00:14:03,040 --> 00:14:06,679
Speaker 1: though um you know, stubbornly still in double digits are

223
00:14:06,679 --> 00:14:09,000
Speaker 1: the UK inflation rates has actually fallen now for a

224
00:14:09,120 --> 00:14:12,959
Speaker 1: third month in a row. Right, So coming up, But

225
00:14:13,120 --> 00:14:17,240
Speaker 1: in just a moment, Sooner considers backdating pay boarcenario, plans

226
00:14:17,280 --> 00:14:21,600
Speaker 1: to return to Brazil now the paper review on Blue

227
00:14:21,680 --> 00:14:24,480
Speaker 1: Birthday Break Europe. The news you need to know from

228
00:14:24,520 --> 00:14:28,240
Speaker 1: today's papers. Lean Gerrans is here at the details on

229
00:14:28,400 --> 00:14:30,520
Speaker 1: those stories for us Lee and good morning to you.

230
00:14:30,640 --> 00:14:33,720
Speaker 1: We just discussed there with Martin mctagg this story in

231
00:14:33,760 --> 00:14:36,720
Speaker 1: the Financial Times around public sector pay. What does that

232
00:14:36,760 --> 00:14:39,040
Speaker 1: he tell of us? Yes, indeed, and what he had

233
00:14:39,120 --> 00:14:41,800
Speaker 1: to say there was very interesting, didn't he said? Public

234
00:14:41,920 --> 00:14:45,720
Speaker 1: sector pay is a different argument when it comes to business.

235
00:14:45,800 --> 00:14:48,760
Speaker 1: So a point taken. Now the Prime Minister and the

236
00:14:48,840 --> 00:14:52,520
Speaker 1: Chancellor are exploring a backdated pay offer to try to

237
00:14:52,720 --> 00:14:56,000
Speaker 1: end this wave of public sector strikes. Now this was all,

238
00:14:56,120 --> 00:14:59,800
Speaker 1: according to the Financial Times, to try to sweeten the pill.

239
00:15:00,080 --> 00:15:03,120
Speaker 1: She's Sooner and Jeremy Hunt are considering giving workers a

240
00:15:03,280 --> 00:15:07,360
Speaker 1: lump sum by backdating next year's pay rise, which takes

241
00:15:07,440 --> 00:15:13,080
Speaker 1: effect from April probably to the start of January twenty three. However,

242
00:15:13,280 --> 00:15:15,920
Speaker 1: I do want to point to something Caroline alluded to

243
00:15:16,120 --> 00:15:20,360
Speaker 1: there too. The UK isn't considering back dating pay writers

244
00:15:20,440 --> 00:15:23,920
Speaker 1: for NHS staff and other key workers. A government official

245
00:15:24,000 --> 00:15:27,880
Speaker 1: has said, pushing back against us earlier reporting from the

246
00:15:28,000 --> 00:15:31,480
Speaker 1: FT and that is according to our very own Joe

247
00:15:31,720 --> 00:15:35,360
Speaker 1: May's right here at Bloomberg, so he's saying this essentially

248
00:15:35,640 --> 00:15:38,440
Speaker 1: is not true at the moment after speaking to a

249
00:15:38,520 --> 00:15:41,920
Speaker 1: government official. And then of course we did see inflation

250
00:15:42,040 --> 00:15:44,920
Speaker 1: figures coming today. Yea, how much of this is kind

251
00:15:44,920 --> 00:15:47,440
Speaker 1: of politic and we've seen the Suna government do this before.

252
00:15:47,560 --> 00:15:49,720
Speaker 1: You know that there's been reporting around a certain issue,

253
00:15:49,720 --> 00:15:52,160
Speaker 1: and then depending on how much pushback it gets, you know,

254
00:15:52,400 --> 00:15:55,840
Speaker 1: perhaps the government altering its message. Just very briefly. The

255
00:15:55,920 --> 00:15:59,040
Speaker 1: Wall Street Journal has an exclusive on Barcenaro, Yes, indeed,

256
00:15:59,120 --> 00:16:02,000
Speaker 1: and he's been speaking into the Wall Street Journal Caroline

257
00:16:02,040 --> 00:16:05,000
Speaker 1: exclusively while he is in the US, and he was

258
00:16:05,080 --> 00:16:09,280
Speaker 1: surrounded by bodyguards while he was having this interview. And

259
00:16:09,400 --> 00:16:13,160
Speaker 1: the former Brazilian president resilient saying he's planning to return

260
00:16:13,240 --> 00:16:16,560
Speaker 1: to Brazil next month. He wants to lead the political

261
00:16:16,680 --> 00:16:20,520
Speaker 1: opposition to the president Lula de Silva, and he defended

262
00:16:20,600 --> 00:16:25,480
Speaker 1: himself against accusations he incited attacks by protesters on government

263
00:16:25,600 --> 00:16:29,560
Speaker 1: buildings last month. He says he's eager to get home,

264
00:16:29,680 --> 00:16:33,360
Speaker 1: but is acknowledging those legal risks that are in place

265
00:16:33,800 --> 00:16:36,560
Speaker 1: after as I did say he was accused by prosecutors

266
00:16:36,640 --> 00:16:39,880
Speaker 1: for inciting riots in January, and that was with a

267
00:16:40,000 --> 00:16:44,000
Speaker 1: social media post that did warn of voter fraud. And

268
00:16:44,120 --> 00:16:48,440
Speaker 1: Bolsonara has not conceded defeat in last year's election, so

269
00:16:48,640 --> 00:16:54,000
Speaker 1: more from him. This is Bloomberg Daybreak Europe, your morning

270
00:16:54,120 --> 00:16:56,680
Speaker 1: brief on the stories making news from London to Wall

271
00:16:56,760 --> 00:16:59,720
Speaker 1: Street and beyond. Look for us on your podcast speed

272
00:17:00,000 --> 00:17:03,240
Speaker 1: every morning, on Apple, Spotify, and anywhere else you get

273
00:17:03,320 --> 00:17:05,840
Speaker 1: your podcasts. You can also listen live each morning on

274
00:17:05,960 --> 00:17:08,480
Speaker 1: London d A B Radio, the Bloomberg Business app, and

275
00:17:08,560 --> 00:17:11,760
Speaker 1: Bloomberg dot Com. Our flagship New York station is also

276
00:17:11,840 --> 00:17:15,880
Speaker 1: available on your Amazon Alexa devices. Just say Alexa play

277
00:17:15,960 --> 00:17:19,919
Speaker 1: Bloomberg thirty. I'm Caroline Hitka and I'm Stephen Carroll. Join

278
00:17:20,000 --> 00:17:22,320
Speaker 1: us again tomorrow morning. For all the news you need

279
00:17:22,480 --> 00:17:25,439
Speaker 1: to start your day right here on Bloomberg Daybreak. Europe