WEBVTT - Wall Street's China Problem & UBS's $35B Credit Suisse Windfall 0:00:02.960 --> 0:00:05.800 This is Bloomberg dabahre for this Wednesday, the seventeenth of 0:00:05.840 --> 0:00:09.080 May in London. Coming up today, Don't bang on it. 0:00:09.320 --> 0:00:13.440 Wall Street gets a China reality check, not quite dancing 0:00:13.480 --> 0:00:17.520 on the ceiling. Biden and McCarthy voice cautious optimism on 0:00:17.600 --> 0:00:21.560 a debt deal. Paper profits Ubs gets a thirty five 0:00:21.760 --> 0:00:23.840 billion dollar gain from its credit. 0:00:23.600 --> 0:00:29.120 SUEEE takeover closer cooperation on cross channel migration. The CBI 0:00:29.240 --> 0:00:32.760 looks to rebuild trust and Starmer said we should build 0:00:32.880 --> 0:00:35.600 on the Greenbelt. Those other stories we're looking at in 0:00:35.640 --> 0:00:38.040 today's papers, and I'm Leanne Gerns. 0:00:38.240 --> 0:00:42.159 Bus lawmakers look to shift the odds on crypto. MP's 0:00:42.240 --> 0:00:45.879 call for trading and digital currencies to be regulated just 0:00:46.000 --> 0:00:46.680 like gambling. 0:00:48.800 --> 0:00:52.640 That's all straight ahead on Bloomberg Daybreak Europe. The business 0:00:52.680 --> 0:00:54.840 news you need to start your day in just one 0:00:54.920 --> 0:00:59.440 fifteen minute podcast on Apple, Spotify, the Bloomberg Business App, 0:00:59.520 --> 0:01:01.760 and every way you get your podcasts. 0:01:03.960 --> 0:01:08.000 Good morning, I'm Caroline Hitka. Let's go to our top stories. 0:01:08.680 --> 0:01:12.119 US banks have spent billions of dollars trying to stake 0:01:12.160 --> 0:01:16.720 acclaim on China's sixty trillion dollar financial market, but a 0:01:16.720 --> 0:01:21.000 Bloomberg investigation has found that many are now quietly scaling 0:01:21.040 --> 0:01:24.960 back their ambitions. Bloomberg's Valerie ty Tell has the full story. 0:01:25.360 --> 0:01:28.280 Wall Street giants are cooling on the world's second largest 0:01:28.280 --> 0:01:32.760 economy as they factor in rising geopolitical risk. Goldman Bank 0:01:32.800 --> 0:01:36.320 of America and JP Morgan are among those cutting exposure, 0:01:36.520 --> 0:01:40.680 new ventures and headcounts in China. Liz Trust is currently 0:01:40.720 --> 0:01:43.839 in Taiwan is just the latest sign of the growing friction. 0:01:44.440 --> 0:01:47.280 The former UK Prime Minister framed the divide as a 0:01:47.319 --> 0:01:49.160 clash of civilizations. 0:01:49.720 --> 0:01:53.640 You here in Taiwan know what the threat is. It's 0:01:53.720 --> 0:02:01.000 tyranny instead of freedom. It's control not choice. It's arbitrary 0:02:01.040 --> 0:02:04.160 decisions made rather than proper justice. 0:02:04.400 --> 0:02:08.080 Despite Trust's comments on control, China recently moved to allow 0:02:08.160 --> 0:02:12.600 foreign firms full ownership of financial services, yet that hasn't 0:02:12.600 --> 0:02:17.040 stopped raids on consultancies conducting due diligence for global investors 0:02:17.680 --> 0:02:20.960 in London. Valerie Titel Bloomberg Daybreak Europ. 0:02:21.360 --> 0:02:24.080 Now, the debt seating talks are ramping up in the 0:02:24.200 --> 0:02:26.679 US after a meeting between President Biden and the House 0:02:26.680 --> 0:02:30.400 Speaker McCarthy. The latest round of negotiations will feature a 0:02:30.560 --> 0:02:32.919 narrower group of people in the hopes that it yields 0:02:32.919 --> 0:02:36.520 a deal to avert an unprecedented US default. While there 0:02:36.560 --> 0:02:39.400 is still clear water between the two sides, the President 0:02:39.440 --> 0:02:41.240 says that he's cautiously optimistic. 0:02:41.720 --> 0:02:44.880 We just finished another good, productive meeting with our congressional 0:02:44.919 --> 0:02:47.800 leadership about a path forward to make sure that America 0:02:47.880 --> 0:02:50.079 does not to fall on his debt. There's still work 0:02:50.120 --> 0:02:52.280 to do, but I made it clear to the Speaker 0:02:52.320 --> 0:02:55.480 and others that will speak regularly over the next several days, 0:02:55.480 --> 0:02:58.679 and the staff is going to continue meeting daily to 0:02:58.720 --> 0:03:01.080 make sure we do not befall. 0:03:02.120 --> 0:03:06.040 Biden's comments were echoed by Kevin McCarthy, who says that 0:03:06.080 --> 0:03:08.800 a deal is possible within days, although both sides are 0:03:08.840 --> 0:03:12.120 still far apart. The Treasury says that the country could 0:03:12.120 --> 0:03:14.680 default as soon as the first of June if the 0:03:14.720 --> 0:03:19.880 debt ceiling is not lifted. After ten months of consecutive 0:03:19.960 --> 0:03:24.240 rate rises, Divisions are starting to emerge between Fed policymakers 0:03:24.280 --> 0:03:27.239 on when to stop the Chicago Fed President Austin Goulesby 0:03:27.480 --> 0:03:30.840 to Bloomberg's Michael McKee that it was the strangest business 0:03:30.840 --> 0:03:31.800 cycle in history. 0:03:32.360 --> 0:03:36.080 Inflation is down and continues to make progress. It's not 0:03:36.160 --> 0:03:38.720 as fast as we wanted it to or we expected 0:03:38.760 --> 0:03:43.640 it to be, and therein lies the that's thenbe the 0:03:43.960 --> 0:03:46.840 of the issue of can you get it down more 0:03:47.000 --> 0:03:50.200 without starting a recession? Because we have a dual landing, 0:03:50.240 --> 0:03:52.360 we got to look at employment and inflation. 0:03:53.440 --> 0:03:56.600 Austin Goolesby is a voting member on the FOMC this year, 0:03:56.680 --> 0:03:58.920 as is the New York Fed chief John Williams and 0:03:58.960 --> 0:04:02.560 the Dallas President Lourie Logan. They all say that coming 0:04:02.680 --> 0:04:05.760 data is going to be extremely important as the central 0:04:05.760 --> 0:04:08.800 Bank tries to assess if it has done enough to 0:04:08.920 --> 0:04:13.800 tame inflation. UBS says that its emergency takeover of Credit 0:04:13.840 --> 0:04:17.120 SUEEE could boost its bottom line by thirty five billion 0:04:17.160 --> 0:04:20.239 dollars this quarter, as well as the massive accounting gain. 0:04:20.600 --> 0:04:23.839 UBS says that it is projecting billions in potential legal 0:04:23.880 --> 0:04:28.640 and regulatory costs. The booster profits comes from negative goodwill, 0:04:28.920 --> 0:04:32.000 at which many investors consider an accounting quirk. 0:04:32.080 --> 0:04:33.920 So that on UBS and just. 0:04:33.920 --> 0:04:37.520 Lastly here in the UK, crypto trading should be regulated 0:04:37.760 --> 0:04:41.240 like gambling. That's according to the Treasury Select Committee. Blomberg's 0:04:41.440 --> 0:04:42.800 U and POTS reports. 0:04:42.400 --> 0:04:47.000 Now investigating crypto assets like bitcoin should be treated like gambling. 0:04:47.080 --> 0:04:50.360 That's the view of MPs on the Treasury Select Committee. 0:04:50.600 --> 0:04:53.800 The Cross party group has strongly recommended the changes for 0:04:54.000 --> 0:04:57.760 retail investors, warning that cryptos are highly volatile and have 0:04:58.040 --> 0:05:02.480 quote no intrinsic value. The proposal comes after a month's 0:05:02.560 --> 0:05:05.680 long inquiry and Ron's counter to the government stated plan 0:05:05.960 --> 0:05:10.120 to regulate digital coins like traditional financial services, dated from 0:05:10.279 --> 0:05:13.600 HMRC shows around ten percent of UK adults hold or 0:05:13.640 --> 0:05:17.400 have held crypto assets. The reports also criticized the government 0:05:17.400 --> 0:05:21.240 for spending public resources on supporting cryptoactivities and single out 0:05:21.240 --> 0:05:24.039 a plan now scrapped by the Royal Mint for an 0:05:24.160 --> 0:05:27.640 NFT in London. I'm you in pots Bloomberg day Break Europe. 0:05:27.800 --> 0:05:29.560 Those are a few of our top stories for you 0:05:29.640 --> 0:05:32.280 this morning. I also thought that it was quite interesting 0:05:32.800 --> 0:05:36.080 that the regulator, the FCA, is talking about how many 0:05:36.120 --> 0:05:41.000 more Britons are in difficulty because of loans and rising inflation. 0:05:41.520 --> 0:05:44.520 So they've picked out that there are ten point nine 0:05:44.600 --> 0:05:47.440 million people who have found it tough to meet their 0:05:47.440 --> 0:05:51.480 obligations i e. Bills and credit card payments, So the 0:05:51.600 --> 0:05:55.280 number of people struggling to pay those has risen by 0:05:55.400 --> 0:05:58.120 forty percent. So the FCA has issued quite a number 0:05:58.120 --> 0:06:01.000 of reminders to banks to try to treat customers fairly 0:06:01.040 --> 0:06:03.719 if they run into difficulties. But I think those figures 0:06:03.760 --> 0:06:06.880 are pretty staggering that so many people now are finding 0:06:06.880 --> 0:06:09.080 it very difficult in the last three to six months 0:06:09.480 --> 0:06:13.560 actually to meet their obligations. This is you contrast it 0:06:13.600 --> 0:06:16.000 to another story that we have on the terminal. The 0:06:16.040 --> 0:06:19.760 gap between rich and poor countries has widened so much. 0:06:20.120 --> 0:06:24.960 Given COVID, it now takes twelve and a half million 0:06:25.040 --> 0:06:29.520 dollars to be amongst Monaco's wealthiest. Compare that to the US. 0:06:29.839 --> 0:06:31.800 You just need five point one million to be in 0:06:31.839 --> 0:06:34.360 the top one percent to make the cut there. But 0:06:34.920 --> 0:06:39.160 the research by night Frank shows just how much different 0:06:39.200 --> 0:06:44.640 countries are showing that widening gap between rich and port nations. Anyway, 0:06:44.640 --> 0:06:47.040 a few stories that I found of interest this morning. 0:06:47.360 --> 0:06:50.880 Let's move on, though, and talk about Bloomberg's Big Take today, 0:06:50.960 --> 0:06:54.320 which tackles I think the biggest issue in global finance 0:06:54.360 --> 0:06:57.839 and geopolitics today, which is the role of China. Wall 0:06:57.839 --> 0:07:00.559 Street firms seem to be giving up on any hope 0:07:00.560 --> 0:07:04.960 of significant inroads into China's financial markets quite remarkable, let 0:07:05.000 --> 0:07:08.720 alone hoping for any outsized profits. Only two years ago, 0:07:08.760 --> 0:07:12.440 foreign funds started to call China uninvestable. 0:07:11.680 --> 0:07:13.360 But President Shijinping. 0:07:12.920 --> 0:07:17.120 Seemed to want to lure them back with market friendly reforms. 0:07:17.400 --> 0:07:19.480 Now Wall Street seems to be waking up to a 0:07:19.640 --> 0:07:26.280 souring business climate. China's state owned enterprises dominate in domestic banking, insurance, 0:07:26.320 --> 0:07:29.080 asset management. Joining me now to discuss is our Bloomberg 0:07:29.120 --> 0:07:31.440 opinion columnists Shuly ren Sally, Good morning. 0:07:31.600 --> 0:07:32.960 Lovely to have you on the program. 0:07:33.120 --> 0:07:37.320 You've written in depth about this issue in such interesting ways. 0:07:37.520 --> 0:07:40.040 But it does seem that Wall Street is. 0:07:41.480 --> 0:07:45.040 Sort of has been nursing this hope about China for 0:07:45.120 --> 0:07:48.160 a long time, and now they're finally giving up on that. 0:07:48.200 --> 0:07:49.280 Do you think that's true? 0:07:49.760 --> 0:07:52.200 I think that's largely true. I mean, look at a 0:07:52.280 --> 0:07:55.520 decade ago, twenty fourteen, right, that was when Ali Baba 0:07:55.600 --> 0:07:58.400 when public in New York, where the twenty five billion 0:07:58.400 --> 0:08:02.920 dollars capitalies I was one hundreds and millions of investment 0:08:02.960 --> 0:08:06.440 banking fleees. So they've been trying to get the China 0:08:06.480 --> 0:08:09.960 business since then, since basically twenty fourteen, twenty fifteen and 0:08:10.080 --> 0:08:12.760 it seems like the business is not coming their way, 0:08:12.960 --> 0:08:15.560 and it's very unfortunate. Like if you look at like 0:08:15.600 --> 0:08:19.720 a China's star market, it actually is the world's busiest 0:08:19.720 --> 0:08:22.240 IPO market right now. I mean, we know us there 0:08:22.280 --> 0:08:25.640 are no IPOs, but in China this year alone, we 0:08:25.760 --> 0:08:29.000 see over one hundred deals and they're raising more than 0:08:29.240 --> 0:08:33.760 twenty five million, twenty five billion in IPO money. But 0:08:33.840 --> 0:08:36.280 they're Wall Street thanks, They're just not getting any of 0:08:36.280 --> 0:08:36.880 that business. 0:08:37.400 --> 0:08:40.280 But I suppose you know, you see the latest crackdowns 0:08:40.360 --> 0:08:43.280 on consulting firms now also on capital flows of our 0:08:43.320 --> 0:08:47.079 online brokerages. I mean you've written a piece recently, you 0:08:47.160 --> 0:08:50.160 know that seems so prescient. Don't bother investing in China 0:08:50.200 --> 0:08:53.920 unless you are Chinese. I mean, the difficulties are quite clear, 0:08:53.960 --> 0:08:55.720 aren't they to foreign investors. 0:08:56.160 --> 0:08:59.199 Yeah, Like, let me just talk about like IPO. If 0:08:59.240 --> 0:09:02.360 you're IPO bans, you have to do diligence right, and 0:09:02.400 --> 0:09:09.120 the government makes investment bankers personally responsible if the company 0:09:09.120 --> 0:09:11.760 turns out to be a complete flop. But the kind 0:09:11.760 --> 0:09:14.640 of companies that go public in China these days are 0:09:14.679 --> 0:09:18.720 these so called industrial tech companies that do like I 0:09:18.760 --> 0:09:22.880 mean semiconductors, smart manufacturing and these kind of companies. They 0:09:22.920 --> 0:09:27.240 can be for due purposes right, commercial and possibly in military. 0:09:27.520 --> 0:09:30.319 And it's very hard for Wall Street foreign banks to 0:09:30.440 --> 0:09:33.439 go in and say, Okay, I'm going to do due diligence, 0:09:34.200 --> 0:09:38.959 I don't know, facial recognition software or robotics. It's very tough. 0:09:39.080 --> 0:09:42.480 So basically it's the mainland Chinese banks doing this kind 0:09:42.520 --> 0:09:42.920 of work. 0:09:43.320 --> 0:09:47.000 What does it mean truly to have China now increasingly 0:09:47.080 --> 0:09:49.439 in its own financial bubble? 0:09:49.960 --> 0:09:54.120 I think as long as the presence continues with this 0:09:54.280 --> 0:09:59.960 industrial push. Basically at this point, the only domestic banks, 0:10:00.040 --> 0:10:04.040 especially SOE banks, are there to finance this industrial push 0:10:04.280 --> 0:10:08.080 because for everyone else there is the danger of you know, 0:10:09.200 --> 0:10:13.640 infringing upon China's national security, security risk or whatever they 0:10:13.679 --> 0:10:14.040 call it. 0:10:14.440 --> 0:10:14.679 I mean. 0:10:14.720 --> 0:10:17.079 Having said that, of course, Will Street has spent years 0:10:17.080 --> 0:10:21.400 in these joint partnerships, but Wall Street expertise isn't needed 0:10:21.400 --> 0:10:23.160 any longer, not so much. 0:10:23.240 --> 0:10:25.520 I mean, some Wall Street banks have done very well, 0:10:25.559 --> 0:10:29.080 like UBS, they had a joint venture with China for 0:10:29.120 --> 0:10:31.520 many years, right, and they have done a lot of 0:10:31.840 --> 0:10:35.600 trade flows through the Hong Kong stock connect. They have 0:10:35.720 --> 0:10:38.560 done well, But the problem is all these Wall Street banks. 0:10:38.559 --> 0:10:41.880 They have hired very, very aggressively, so now they have 0:10:42.040 --> 0:10:44.960 to pair back quite aggressively too. It's not unlike what 0:10:45.000 --> 0:10:48.120 we saw with the big tech companies. If you hire 0:10:48.160 --> 0:10:52.200 to aggressively in the past, when the reality does not 0:10:52.280 --> 0:10:54.400 turn out as well, you have to lay off a 0:10:54.400 --> 0:10:55.200 lot of people too. 0:10:55.760 --> 0:10:58.720 Absolutely, And last thought, Shirley, what it means for Europe 0:10:58.760 --> 0:11:01.640 and the UK then, I mean we've largely talked about, 0:11:01.640 --> 0:11:04.960 you know, the relationship between the world's two biggest players, 0:11:05.000 --> 0:11:07.840 but there are others, you know. I mean, perhaps in 0:11:07.880 --> 0:11:09.920 the UK is a minno in comparison, but I mean 0:11:09.960 --> 0:11:14.120 I think worth understanding. What are the implications then for 0:11:14.320 --> 0:11:17.840 businesses out of Europe the UK. Europe's tried to position 0:11:17.920 --> 0:11:20.520 itself differently to the US visa v Beijing. 0:11:21.520 --> 0:11:26.439 I mean, Beijing definitely likes Europe more than the US, 0:11:26.559 --> 0:11:30.600 and they do some of the technologies, especially in Germany, 0:11:31.200 --> 0:11:34.000 and they hope that they can import some of the technologies. 0:11:34.160 --> 0:11:37.280 But I do think Europe is working a very tight rope. UK, 0:11:37.400 --> 0:11:40.760 for instance, has been talking about, you know, warming up 0:11:40.760 --> 0:11:44.719 its relations with Hong Kong in recent weeks, right, But 0:11:45.559 --> 0:11:47.840 me being based in Hong Kong. I just feel like 0:11:48.240 --> 0:11:50.959 the Hong Kong economy is working closer and closer to China, 0:11:51.200 --> 0:11:54.880 and we don't really need that much of collaboration with 0:11:55.080 --> 0:11:55.800 UK anymore. 0:11:56.160 --> 0:11:58.840 Okay, Suley, thank you so much for being with me 0:11:58.920 --> 0:12:02.719 this morning. Okay Salient points Blomberg Opinion Commerce. Judy ran 0:12:02.880 --> 0:12:05.559 on our big take then today tackling well one of 0:12:05.600 --> 0:12:09.200 the biggest issues in global finance and geopolitics, the relationship 0:12:09.240 --> 0:12:12.559 between the US and China when it comes to a 0:12:12.600 --> 0:12:16.960 big banking business. Coming up next, closer cooperation on cross 0:12:17.000 --> 0:12:21.080 channel migration. The CBI looks to rebuild trust and kiss 0:12:21.120 --> 0:12:23.600 Starmer says we should build on the green belt. 0:12:25.600 --> 0:12:29.480 Now the paper review on Bluebird Daybreak Europe the news 0:12:29.559 --> 0:12:31.400 you need to know from today's papers. 0:12:32.960 --> 0:12:34.400 So the Guardian has the headline. 0:12:34.440 --> 0:12:37.720 The CBI points at Chief People Officer as it aims 0:12:37.720 --> 0:12:41.560 to quote rebuild trust. Leanne Goens is with me this morning, 0:12:41.600 --> 0:12:44.880 so we followed, obviously, the travails of the Confederation of 0:12:44.880 --> 0:12:46.839 British Industry, the biggest lobby group in the UK. 0:12:46.960 --> 0:12:50.680 What's the latest, Yes, indeed, Carolineton, we'll start off with 0:12:50.760 --> 0:12:53.439 that one at the moment. So Elizabeth Wallace, a former 0:12:53.520 --> 0:12:57.199 head hunter for back Rock, has actually joined the Confederation 0:12:57.400 --> 0:13:00.800 of British Industry as the Chief People Officer. 0:13:01.040 --> 0:13:01.640 As you just. 0:13:01.640 --> 0:13:05.680 Said, now the scandal hit CBI has made this appointment 0:13:06.080 --> 0:13:08.760 and this is in an attempt to overhaul the Lobby 0:13:08.760 --> 0:13:13.800 Group's internal culture after the series of sexual misconduct allegations. 0:13:14.000 --> 0:13:17.240 We have spoken about a lot in the newspaper Review 0:13:17.320 --> 0:13:21.120 and this was first reported by the Guardian newspaper and 0:13:21.160 --> 0:13:24.040 now they're bringing this news to us. Now Wallace will 0:13:24.080 --> 0:13:26.640 take up the new role as part of the Executive 0:13:26.640 --> 0:13:31.120 Committee and she will report on workplace conduct and cultural 0:13:31.200 --> 0:13:34.920 issues directly to the board. Now we know that the 0:13:34.920 --> 0:13:38.920 CBI also has a new directed General, Raine and Newton Smith, 0:13:39.320 --> 0:13:41.920 and she says the new role for Wallace will be 0:13:42.080 --> 0:13:47.200 integral to reforming our people's strategy. So this is all 0:13:47.240 --> 0:13:50.280 about reform and we know that this is really important 0:13:50.280 --> 0:13:53.680 for the Lobby Group because more than fifty large businesses, 0:13:53.720 --> 0:13:56.800 including the likes of John Lewis and Natt West, have 0:13:56.920 --> 0:14:00.720 suspended or canceled their membership in the last month after 0:14:00.760 --> 0:14:05.240 the Guardian's publication of a series of allegations of sexual misconduct. 0:14:05.600 --> 0:14:08.319 So a big turnaround here for the lobby group. That 0:14:08.480 --> 0:14:09.480 is what they're looking for. 0:14:09.600 --> 0:14:11.880 Yeah, OLiS attempting to do that. 0:14:12.240 --> 0:14:15.360 The Financial Time says the UK and EU agreed to 0:14:15.440 --> 0:14:19.600 collaborate over cross channel migration. This is a real flash 0:14:19.680 --> 0:14:21.280 point in UK politics. 0:14:21.360 --> 0:14:22.800 Yeah, I couldn't agree with you more. 0:14:22.880 --> 0:14:26.760 The EU and UK will collaborate on curbing irregular migration 0:14:26.960 --> 0:14:30.480 across the English Channel and really, Caroline, in a further 0:14:30.560 --> 0:14:35.320 sign of warming relations after years of post Brexit tensions, 0:14:35.600 --> 0:14:39.000 So Brussels and London will negotiate a deal to exchange 0:14:39.120 --> 0:14:43.280 intelligence expertise and also personnel, and this will really be 0:14:43.440 --> 0:14:48.280 to combat smugglers. After six months of deadlock over the plans. 0:14:48.320 --> 0:14:52.280 So Rishie Sunak Urshela vonderlyon. They've both welcomed the idea 0:14:52.400 --> 0:14:56.800 of London working with Frontext now that's the EU Border Agency. 0:14:57.160 --> 0:15:00.720 And this all happened at a meeting on this sidelines 0:15:01.120 --> 0:15:03.960 of the Council of Europe so at Caroline, which is 0:15:04.040 --> 0:15:07.520 in Iceland. So Rishie Snak was there and this appears 0:15:07.800 --> 0:15:10.360 to be what he's saying. We also saw him talking 0:15:10.400 --> 0:15:13.760 there yesterday in Iceland and he said he's pushing four 0:15:13.800 --> 0:15:19.240 reforms to court orders which have blocked deportation flights to Rwanda, 0:15:19.280 --> 0:15:22.960 which has been very controversial here once again on the 0:15:23.000 --> 0:15:26.880 immigration discussion. That is a flashpoint if we really want 0:15:26.920 --> 0:15:30.120 to look at it that way. But Yesday's announcement Marxist 0:15:30.400 --> 0:15:34.000 significant step up in europe wide efforts to tackle the 0:15:34.040 --> 0:15:36.360 problem of migration together. 0:15:36.680 --> 0:15:38.440 Yeah, I think the Prime Minister is sort of trying 0:15:38.480 --> 0:15:42.080 to make this a European issue, you know, one that 0:15:42.160 --> 0:15:44.600 affects all countries rather than just the UK. But I 0:15:44.600 --> 0:15:46.000 think the big date is going to be the twenty 0:15:46.000 --> 0:15:47.680 fifth of May, isn't it when we get the independent 0:15:47.760 --> 0:15:52.560 data or actually on migration flows such as it is. Anyway, 0:15:52.840 --> 0:15:55.600 let's just end though. On the Times, the headline there 0:15:55.680 --> 0:16:00.440 kissed Arma Labor will rebuild working class dream of owning home. 0:16:00.600 --> 0:16:02.720 How much of an appeal will that have to voters? 0:16:02.840 --> 0:16:03.680 Well, Caroline. 0:16:03.720 --> 0:16:06.360 The Times leads with this story saying kir Stamer is 0:16:06.400 --> 0:16:09.160 going to abow to make the Labor Party the house 0:16:09.360 --> 0:16:14.320 building party by relaxing planning restrictions and really allowing more 0:16:14.360 --> 0:16:17.280 homes to be built on the green belts. So he's 0:16:17.360 --> 0:16:20.760 been speaking to The Times interviews in the newspaper, and 0:16:20.800 --> 0:16:24.080 the Labor leader has taken the sort of chance and 0:16:24.120 --> 0:16:28.080 the barb to accuse the Conservatives of killing the aspiration 0:16:28.600 --> 0:16:31.920 of home owning for a whole generation. We know how 0:16:31.960 --> 0:16:34.360 difficult it is to get on the property ladder. It 0:16:34.400 --> 0:16:37.560 is tough, and there is a shortage of houses now. 0:16:37.560 --> 0:16:40.200 He's also warned that house building was on course to 0:16:40.360 --> 0:16:43.640 fall to its lowest level and that since the Second 0:16:43.720 --> 0:16:47.280 World War. He said that labor would give local authorities 0:16:47.560 --> 0:16:50.720 and residents more power to build on the green belts 0:16:51.200 --> 0:16:54.040 and to meet local housing needs. So that's what he 0:16:54.160 --> 0:16:57.480 really wants to do. It's a whole reform really when 0:16:57.480 --> 0:17:00.920 it comes to house building and planning permission. Now, I 0:17:01.040 --> 0:17:03.360 just have to say one thing, in a super stark 0:17:03.400 --> 0:17:07.280 contrast to this, a conservative government has really said it's 0:17:07.320 --> 0:17:11.280 going to pledge to enhance protections for green about land 0:17:11.320 --> 0:17:15.040 and Bloomberg's Joe Mason, Ellen Milligan, they have a really 0:17:15.040 --> 0:17:18.679 good story on the Bloomberg terminal today, really interesting, and 0:17:18.720 --> 0:17:22.280 they're saying that the opposition to more home building really 0:17:22.320 --> 0:17:27.040 comes largely from conservative MPs in rural seats who are 0:17:27.160 --> 0:17:31.160 arguing that more development threatens the environment and the whole 0:17:31.359 --> 0:17:35.320 esthetic of our countryside. So here we see the labor 0:17:35.359 --> 0:17:39.240 and the Conservative's complete polar opposite when it comes to 0:17:39.400 --> 0:17:41.520 what to do about the shortage of homes and the 0:17:41.640 --> 0:17:43.320 dream of owning your own. 0:17:43.720 --> 0:17:44.000 Yeah. 0:17:44.040 --> 0:17:48.760 Absolutely, it's a hugely important issue, both in terms of 0:17:48.840 --> 0:17:51.359 the built environment but also for voters. Thank you so 0:17:51.440 --> 0:17:54.320 much to Lean Gerins for our newspaper review. 0:17:55.840 --> 0:17:58.560 This is Bloomberg Daybreak Europe, your morning brief on the 0:17:58.640 --> 0:18:01.680 stories making news from to Wall Street and beyond. 0:18:01.960 --> 0:18:05.920 Look for us on your podcast feed every morning, on Apple, Spotify, 0:18:06.040 --> 0:18:07.960 and anywhere else you get your podcasts. 0:18:08.040 --> 0:18:11.040 You can also listen live each morning on London Dab Radio, 0:18:11.080 --> 0:18:13.800 the Bloomberg Business app, and Bloomberg dot Com. 0:18:13.840 --> 0:18:16.600 Our flagship New York station, is also available on your 0:18:16.600 --> 0:18:21.320 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 0:18:21.560 --> 0:18:22.880 I'm Caroline Hepka and. 0:18:22.800 --> 0:18:25.480 I'm Stephen Carroll. 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