WEBVTT - Exploding Head and Vomit Emojis: Tory MPs on WhatsApp

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<v Speaker 1>Like, what are the WhatsApp like, are there like a

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<v Speaker 1>lot of emojis, that's a lot of yea, the brain explosion,

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<v Speaker 1>brain explosion, how many times are like how many brain

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<v Speaker 1>explosions were there on that WhatsApp? I've had a lot

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<v Speaker 1>of vomits emojis as well. That's that's come up a

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<v Speaker 1>lot of just the idea of whatever person taking over. Yeah,

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<v Speaker 1>I honestly think the problem is twelve years they all

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<v Speaker 1>hate each other. We've got personal reasons to hate each other.

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<v Speaker 1>And when you start of the government in Germany, you

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<v Speaker 1>want to like someone, but you haven't really got lots

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<v Speaker 1>of reasons to hate people specially and these just hate it. Yeah,

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<v Speaker 1>that's such a good point and I thought that was

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<v Speaker 1>really Dave shoul will try this again. I think we

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<v Speaker 1>better so a little over twenty four hours ago we

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<v Speaker 1>sat down and actually taped what we thought it was

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<v Speaker 1>a fantastic episode with Catherin Griffith's brig editor on our

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<v Speaker 1>Finance team and UK Government report Alex Wickham. We picked

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<v Speaker 1>over the potential for liz trust Is future, the outlook

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<v Speaker 1>of our promises to the city. We all placed bets

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<v Speaker 1>on when this trust would resign, should we take bets

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<v Speaker 1>and when she goes, I've already lost. I have a

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<v Speaker 1>bet day. But at day lettuce, Alex, when do you

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<v Speaker 1>think she goes? I think this week before Sunday, before Saturday,

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<v Speaker 1>before Saturday would be my bet. But I think today,

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<v Speaker 1>you think today? One more day? Freaky podcast, hang on

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<v Speaker 1>one more day, so we get this podcast out. Please,

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<v Speaker 1>she's listening. But this Trust did not hang on one

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<v Speaker 1>more day. We couldn't get the episode out because Trust

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<v Speaker 1>delivered her final goodbye. That's right, she beat us to it.

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<v Speaker 1>And although we did all know it was coming at

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<v Speaker 1>some point, you weren't sure how quickly. Because the point

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<v Speaker 1>Alex made yesterday in the conversation, and what is still

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<v Speaker 1>true now is that there is actually no obvious or

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<v Speaker 1>clear successor at this point. So that's it. We're back,

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<v Speaker 1>with even more to unpack, and with the hopes that

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<v Speaker 1>no major bombshells will redraw before this podcast is published. YEA,

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<v Speaker 1>our edited that it get moving, get it out. I'm

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<v Speaker 1>Francing Lack wend London studio, and I'm David Merritt's back

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<v Speaker 1>from Washington. Not quite in the London studio. Yeah, but

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<v Speaker 1>you made it back in time. This is in the

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<v Speaker 1>City Bloomberg's podcast, connecting you to the stories and the

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<v Speaker 1>voices at the heart of the City of London. This week.

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<v Speaker 1>What is going on in Westminster, that's all anyone is

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<v Speaker 1>talking about. And do any of the Tory MPs raising

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<v Speaker 1>their hand to be the next prime minister really excited

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<v Speaker 1>the City of London. So with us again. Katherine Griffith's

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<v Speaker 1>Bloombergy editor on our finance team, and the winner of

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<v Speaker 1>yesterday has been on the timing of Lisztruss's departure. Katherin,

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<v Speaker 1>you probably regret we didn't have a very expensive or

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<v Speaker 1>not so expensive bottle of wine on the spet. I

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<v Speaker 1>definitely regret it. And for Alex Wickham, who's knee deep

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<v Speaker 1>in writing about all of the drama, is another brilliant

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<v Speaker 1>reporter from our government team, Ellen Milligan. We know the

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<v Speaker 1>rules now of how the voting goes. I mean that

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<v Speaker 1>they're trying to be pragmatists instead of you know, the

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<v Speaker 1>big ideology maybe that we've seen the past from the

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<v Speaker 1>Tory Party and they want to get this done fast.

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<v Speaker 1>There were two really key details in the rules that

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<v Speaker 1>were announced. One the candidates have to get at least

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<v Speaker 1>one MPs backing them. That means there's only a maximum

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<v Speaker 1>of three people who can enter the race, and it

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<v Speaker 1>also means that they have got a long way to

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<v Speaker 1>go until Monday TPM when votes closed to garner that support.

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<v Speaker 1>And really that means that the big beast boris Johnson,

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<v Speaker 1>Richie seen a Penny Moore than't who have gone through

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<v Speaker 1>this leadership race again. All three of them have got

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<v Speaker 1>more than a hundred MP votes in previous leadership elections.

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<v Speaker 1>They're probably going to be the most likely ones to

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<v Speaker 1>go through. The Other thing, which is really a usual,

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<v Speaker 1>is that on Monday they're going to do an indicative

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<v Speaker 1>vote where MPs can vote from those three who they

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<v Speaker 1>want to win. Now that isn't binding, but it's indicative

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<v Speaker 1>of what MP's one and I think that is to

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<v Speaker 1>bounce whoever become second, maybe third in that vote into

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<v Speaker 1>dropping out and not letting the race go in any longer,

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<v Speaker 1>not letting it go to the membership, and making sure

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<v Speaker 1>that we have a prime minister on Monday. It's quite

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<v Speaker 1>remarkable as it, because you know, we just we all

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<v Speaker 1>went through this, didn't we all summer weeks and weeks

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<v Speaker 1>and weeks of it being told this is the process

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<v Speaker 1>that we need to identify the right leader, and turns

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<v Speaker 1>out we can just do it in three days. I mean,

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<v Speaker 1>it just doesn't It undermine all of the all of

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<v Speaker 1>the rules that we were told were absolutely necessary. The

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<v Speaker 1>Conservable they just sort of make it up as they

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<v Speaker 1>go along, don't think they do. And I mean it's

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<v Speaker 1>designed like this to kind of give stability to the

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<v Speaker 1>Conservative Party, but also the country is quickly as possible

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<v Speaker 1>not have this long drawn out period. If it doesn't

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<v Speaker 1>go to the membership, only Conservative MPs are going to

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<v Speaker 1>decide who our next prime ministers. I mean, it's happened

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<v Speaker 1>in the Labor Party. You didn't get as well. These

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<v Speaker 1>rules of having the members choose you can sometimes end

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<v Speaker 1>up with somebody doesn't work out right, That's the problem.

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<v Speaker 1>It depends who you ask. I mean the membership. If

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<v Speaker 1>you look at those three, I mentioned Penny more than

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<v Speaker 1>Boris Johnson. RICHI soon act the membership still love Boris Johnson.

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<v Speaker 1>I think the if it does go to membership, the

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<v Speaker 1>indicative vote of the MPs will actually have a different

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<v Speaker 1>result what the membership will. So if I had this

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<v Speaker 1>brilliant conversation with Tory MP Carl McCartney, he's bagging Boris Johnson.

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<v Speaker 1>He's also been on the committee for all but two days,

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<v Speaker 1>so this is what he said about Boris Johnson. Ultimately,

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<v Speaker 1>he's the best electoral asset that Conservative Party has and

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<v Speaker 1>for the past three four months, all I've ever had

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<v Speaker 1>from my constituents in my marginal seat in Lincoln is

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<v Speaker 1>that they want to see Boris back. And that's whether

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<v Speaker 1>they I'm business in this and speak to business people,

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<v Speaker 1>whether that's constituency who I meet shopping in the various

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<v Speaker 1>different supermarkets or even filling up my car, but not

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<v Speaker 1>one person who is going to be and said, we're

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<v Speaker 1>really pleased that you got rid of Boris Johnson. And

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<v Speaker 1>Boris Johnson really he can really be back. You know what,

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<v Speaker 1>last night, I didn't think he could get enough MP

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<v Speaker 1>support to be put on the ballot, but he's now

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<v Speaker 1>garnered just just under the amount of support that Richie

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<v Speaker 1>Soonac has. Ben Wallace has just announced that he's leaning

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<v Speaker 1>towards Boris Johnson, that he's definitely not running. He's quite

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<v Speaker 1>a big force. He's very respected in the party and

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<v Speaker 1>it feels like it could happen. The thing with Boris

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<v Speaker 1>is he is an electoral powerhouse. I mean, he got

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<v Speaker 1>the biggest a TC majority in in a in a

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<v Speaker 1>generation in and he's still people still think he holds

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<v Speaker 1>that magic, even though the polls were declining against him

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<v Speaker 1>when when he was leaving office. But also Liz tra

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<v Speaker 1>us is handling of the economy I think can make

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<v Speaker 1>people look back and think, oh, he did was the

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<v Speaker 1>really party in the pandemic. Sometimes it kind of relatively

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<v Speaker 1>has almost kind of almost made him into this martyr

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<v Speaker 1>figure amongst some people and some Conservatives. But he's I mean,

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<v Speaker 1>I have so many questions, but he's he's toxic. He's

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<v Speaker 1>toxic for the party. He's probably their most divisive option

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<v Speaker 1>to pick in terms of being able to unify the party.

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<v Speaker 1>We've had um MPs saying that they would resign as

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<v Speaker 1>an MP if if he was chosen and cause a

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<v Speaker 1>by election. I mean that those are really strong words.

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<v Speaker 1>And he's got this Privileges Committee into whether he lied

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<v Speaker 1>to Parliament over the party Gate scandal. If he's found

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<v Speaker 1>guilty and if he's suspended for more than ten parliamentary days,

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<v Speaker 1>if there is a vote, and that it could trigger

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<v Speaker 1>a by election for him, I mean it could be chaos,

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<v Speaker 1>a continuation of chaos if he's elected, and there are

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<v Speaker 1>so many people Dave, you know, let's say he's just

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<v Speaker 1>not the antidote to this chaos within parliament, Catherine, how

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<v Speaker 1>would business interpret this? I mean, Boris Johnson becomes Prime

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<v Speaker 1>Minister on Monday, what does the city think. I think

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<v Speaker 1>the city probably thinks, first of all, it's good to

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<v Speaker 1>have a prime minister who is therefore hopefully a while.

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<v Speaker 1>But Boris Johnson is a funny character for the city because,

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<v Speaker 1>on the one hand he has he's been backed by

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<v Speaker 1>some fairly rich city people who hoped he would bring

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<v Speaker 1>about lots of Brexit dividend reforms, but he didn't actually

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<v Speaker 1>do it. And someone made a really interesting point to me.

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<v Speaker 1>When you look back through the many, many thousands of

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<v Speaker 1>words Boris Johnson wrote as a journalist, he hardly ever

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<v Speaker 1>talked about markets or the economy. He's basically not that

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<v Speaker 1>interested in all of that side of things. So I

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<v Speaker 1>think that the city and business more generally would be

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<v Speaker 1>probably more pleased to see, undoubtedly more pleased to see

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<v Speaker 1>Boris Johnson as Prime Minister. The Trust, although there is

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<v Speaker 1>certainly contingent that was was on Lis trust's side and

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<v Speaker 1>was hoping that she would bring about the things they wanted.

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<v Speaker 1>But I think the city will be mainly looking for

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<v Speaker 1>who is the chancellor? Is it Jeremy Hunt or is

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<v Speaker 1>it someone else? Do you think there's a groundswell of

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<v Speaker 1>support for Regie Synacore? But will there be a huge

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<v Speaker 1>amount of relief if finally I mean we've had the

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<v Speaker 1>Liz interlude and the chaos that provoked. But if finally

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<v Speaker 1>they get region akin ten Downing Street or the city

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<v Speaker 1>actually breathe a huge side of relief. I think the

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<v Speaker 1>city will because he has certainly in his own component

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<v Speaker 1>to become the leader. Of course, he he was the

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<v Speaker 1>voice of of caution, wasn't he? And obviously he's now

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<v Speaker 1>kind of garnered by this sense that he was right

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<v Speaker 1>all a long type thing. And I think people who

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<v Speaker 1>have followed his policies quite closely are of the view

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<v Speaker 1>he's quite cautious that yes, sort of counterintuitively really well,

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<v Speaker 1>despite the fact that he's worked for Goldman, Sachs and

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<v Speaker 1>Hedge Funds, that he was very key to balance the

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<v Speaker 1>books and be very very cautious. But there will be

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<v Speaker 1>people out there who think that if he comes back

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<v Speaker 1>he will kind of scupper the more dramatic bold attempts

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<v Speaker 1>to sort of make the UK's rules, you know, properly

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<v Speaker 1>suit the UK. He's come to be seen as a

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<v Speaker 1>sort of stick in the mud to all of those plans.

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<v Speaker 1>He and John Glenn, who used to be the City Minister.

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<v Speaker 1>So there'll be some people out there who are a

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<v Speaker 1>bit worried about that. Ellen, if we oversimplify, is this

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<v Speaker 1>really your choice for the party. On the one hand,

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<v Speaker 1>if they elect Boris Johnson, there is a chance that

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<v Speaker 1>he can win them the next general election two years.

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<v Speaker 1>But on the other hand, if they elect someone else

0:10:41.679 --> 0:10:44.679
<v Speaker 1>but anymore don't Orgi Sunac, then they have almost a

0:10:44.760 --> 0:10:48.319
<v Speaker 1>technocratic government. They could keep the chancellor, and so the

0:10:48.480 --> 0:10:51.600
<v Speaker 1>markets will you don't have a sigh of relief. There's

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<v Speaker 1>two big questions that MP's are asking themselves when they're

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<v Speaker 1>considering who to back one who can win them the

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<v Speaker 1>next action or give them the best chance to considering

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<v Speaker 1>their trailing so disastrously far behind in the polls, and

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<v Speaker 1>to who can unify the party so that the Conservative

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<v Speaker 1>Party isn't completely destroyed from the inside. Boris Johnson, I

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<v Speaker 1>think a lot of people say He's probably the gives

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<v Speaker 1>them the best chance electorally, although there's so many there's

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<v Speaker 1>so many things that Labor can attack him on that

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<v Speaker 1>they that they started to towards the end of his tenure.

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<v Speaker 1>But he's probably the worst in terms of being able

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<v Speaker 1>to unify the party. Rischie Senac trust is backers still

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<v Speaker 1>really don't like Riscie Senac. There was all those blue

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<v Speaker 1>on blue attacks, the nastiness over the summer um that

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<v Speaker 1>still kind of play against him. And then Penny Mordant

0:11:49.800 --> 0:11:51.880
<v Speaker 1>is able to get a lot of support from different

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<v Speaker 1>factions in the party, but a lot of people question

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<v Speaker 1>whether she's had enough experience, whether she's impressed people enough

0:11:59.240 --> 0:12:02.720
<v Speaker 1>when she has been ministerial positions. Um so those are

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<v Speaker 1>the two big questions. In fact, Katherine, it was interesting

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<v Speaker 1>what you were saying about Jeremy Hunt earlier because I

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<v Speaker 1>think he could hold the key to who gets in,

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<v Speaker 1>because I think people want to maybe not the Restaunson

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<v Speaker 1>seeing as they renegates each other for the leadership in

0:12:16.920 --> 0:12:19.120
<v Speaker 1>but I think Penny Morden and Richie Senac will be

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<v Speaker 1>fighting to have a joint ticket with Jeremy Hunt. He's

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<v Speaker 1>managed to calm the market since he's come in um,

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<v Speaker 1>the argument will be we need a degree of stability

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<v Speaker 1>and the treasury um so that the October fiscal statement

0:12:32.559 --> 0:12:35.680
<v Speaker 1>can go ahead. For example, He's done a good job

0:12:35.760 --> 0:12:39.120
<v Speaker 1>so far calming things down, and I think he whoever

0:12:39.240 --> 0:12:42.800
<v Speaker 1>he backs, could hold the key. Yeah. I just think

0:12:42.800 --> 0:12:46.079
<v Speaker 1>there's two questions really are just so important. And on

0:12:46.160 --> 0:12:49.599
<v Speaker 1>the second one, though, I guess my thoughts is, you know,

0:12:49.840 --> 0:12:51.880
<v Speaker 1>with all of them, with all of the backstabbing and

0:12:51.960 --> 0:12:55.920
<v Speaker 1>the in fighting that we've seen, the victual being poured

0:12:55.960 --> 0:12:58.400
<v Speaker 1>around this, this is a party at each other's throat.

0:12:59.200 --> 0:13:02.000
<v Speaker 1>It doesn't feel or like any of those people are

0:13:02.040 --> 0:13:04.040
<v Speaker 1>going to be able to calm down the party enough

0:13:04.440 --> 0:13:06.680
<v Speaker 1>to hold a government together to get to that point.

0:13:06.720 --> 0:13:08.280
<v Speaker 1>To watch the first question, which is whether or not

0:13:08.400 --> 0:13:10.959
<v Speaker 1>they can win an election. Is this kind of a

0:13:11.200 --> 0:13:15.000
<v Speaker 1>party actually in terminal decline at the moment They just

0:13:15.080 --> 0:13:16.880
<v Speaker 1>need to go into opposition. You know. I talked to

0:13:16.960 --> 0:13:20.320
<v Speaker 1>some MPs who say, you know what, we're just going

0:13:20.400 --> 0:13:22.439
<v Speaker 1>to have to accept that this time we might have

0:13:22.559 --> 0:13:24.839
<v Speaker 1>to go with our second or our third choice and

0:13:24.960 --> 0:13:29.199
<v Speaker 1>we just have to grin and Barrett, And then I

0:13:29.320 --> 0:13:32.360
<v Speaker 1>talked to others who say, you know that they might

0:13:32.440 --> 0:13:36.600
<v Speaker 1>resign from the Parliamentary Party if if certain people are

0:13:36.640 --> 0:13:40.360
<v Speaker 1>in gather. We also spoke to Vince Cable and he

0:13:40.520 --> 0:13:42.920
<v Speaker 1>was talking about how Boris Johnson is still a very

0:13:43.720 --> 0:13:48.760
<v Speaker 1>decisive but divisive figure that because of his conduct issues, well,

0:13:48.840 --> 0:13:52.360
<v Speaker 1>I would worry about the consequences. So for several reasons.

0:13:52.360 --> 0:13:56.360
<v Speaker 1>I mean, he's very divisive figure in the country and

0:13:56.640 --> 0:13:58.880
<v Speaker 1>I would imagine with the Tory Planty there are not

0:13:59.000 --> 0:14:01.960
<v Speaker 1>a conservative mass. I think we need to remember there

0:14:02.040 --> 0:14:06.400
<v Speaker 1>only a few months ago a majority of these parliamentary

0:14:06.480 --> 0:14:10.680
<v Speaker 1>colleagues throw them out. Is unsuited to lead the country again.

0:14:10.720 --> 0:14:14.160
<v Speaker 1>When you talk about the city of London, are they

0:14:14.240 --> 0:14:15.960
<v Speaker 1>just fed up with the Tories because they say, look,

0:14:16.000 --> 0:14:21.000
<v Speaker 1>they're putting once again party before country and what does

0:14:21.080 --> 0:14:25.200
<v Speaker 1>that mean for how business friendly they think labor is. Yeah,

0:14:25.320 --> 0:14:28.000
<v Speaker 1>they really are fed up with the Tories. What's been

0:14:28.080 --> 0:14:31.680
<v Speaker 1>quite striking in the last few weeks is when you

0:14:31.800 --> 0:14:36.720
<v Speaker 1>talk to really senior people inside big financial institutions, they

0:14:36.760 --> 0:14:40.120
<v Speaker 1>tend to be quite measured, even if they're speaking off

0:14:40.160 --> 0:14:43.160
<v Speaker 1>the record. They don't really like talking about politics a

0:14:43.200 --> 0:14:46.400
<v Speaker 1>great deal and certainly not about individuals. But there has

0:14:46.440 --> 0:14:50.920
<v Speaker 1>been an absolute fury amongst some of these very senior

0:14:51.720 --> 0:14:55.640
<v Speaker 1>bankers and people in other firms. They think that in

0:14:55.760 --> 0:14:57.800
<v Speaker 1>other walks of life, these people would have had to

0:14:58.320 --> 0:15:01.120
<v Speaker 1>be held accountable, they would have been act much more quickly.

0:15:01.720 --> 0:15:04.640
<v Speaker 1>You know. It's a real, absolute sort of white hot

0:15:04.760 --> 0:15:06.800
<v Speaker 1>fury that you see in their faces, and it's I

0:15:07.200 --> 0:15:09.800
<v Speaker 1>haven't really seen it before in all my years of reporting.

0:15:10.760 --> 0:15:14.520
<v Speaker 1>Talking about the white hot fury of the bankers is remarkable.

0:15:14.800 --> 0:15:18.640
<v Speaker 1>And is there anything that the government can do to

0:15:18.760 --> 0:15:20.880
<v Speaker 1>assuaise that? I mean, one of the main measures that

0:15:20.960 --> 0:15:23.200
<v Speaker 1>the next administration need to put in place to to

0:15:23.360 --> 0:15:26.560
<v Speaker 1>study the ship and reassure the city of London that

0:15:26.640 --> 0:15:30.760
<v Speaker 1>things are going to get better. They absolutely want stability

0:15:31.280 --> 0:15:35.520
<v Speaker 1>and clear plans. They know the economic reality is tough,

0:15:36.200 --> 0:15:38.480
<v Speaker 1>and actually, in some ways I think there are of

0:15:38.520 --> 0:15:41.480
<v Speaker 1>the view that a lot of these difficult things were

0:15:41.520 --> 0:15:45.160
<v Speaker 1>coming down the path anyway, higher interest rates, meaning higher

0:15:45.240 --> 0:15:48.080
<v Speaker 1>mortgage costs for their for customers. But you know, the

0:15:48.160 --> 0:15:50.360
<v Speaker 1>Tory Party, in a sort of act of self sabotage,

0:15:50.360 --> 0:15:52.720
<v Speaker 1>has really sort of owned those problems in a way

0:15:52.760 --> 0:15:54.600
<v Speaker 1>that they might they might not have to have done.

0:15:55.080 --> 0:15:58.360
<v Speaker 1>But in terms of policy they want, they really do

0:15:58.600 --> 0:16:03.120
<v Speaker 1>want stability and physical prudence because they think that that

0:16:03.400 --> 0:16:05.440
<v Speaker 1>might mean that the Bank of England does not in

0:16:05.560 --> 0:16:08.360
<v Speaker 1>fact have to raise rates by quite as much as

0:16:08.400 --> 0:16:09.920
<v Speaker 1>it would otherwise have to do, and that will have

0:16:10.000 --> 0:16:14.080
<v Speaker 1>a really material impact on people who have mortgages, people

0:16:14.120 --> 0:16:17.520
<v Speaker 1>who have loans, and the wider economy. And then I

0:16:17.600 --> 0:16:21.080
<v Speaker 1>think they do want a sort of sensible thought out

0:16:21.680 --> 0:16:24.320
<v Speaker 1>set of ideas for how in fact there can be

0:16:24.560 --> 0:16:27.880
<v Speaker 1>investment in this country. They're obviously extremely keen to to

0:16:28.040 --> 0:16:30.200
<v Speaker 1>be part of that story. They just want to see

0:16:30.280 --> 0:16:32.680
<v Speaker 1>stability so they can get on with it. But again,

0:16:32.840 --> 0:16:35.040
<v Speaker 1>where does the stability come from? So again it's the

0:16:35.080 --> 0:16:38.000
<v Speaker 1>same party, But you saw this trust lasted forty four

0:16:38.080 --> 0:16:41.760
<v Speaker 1>days with radical economic plans. Frankly, so if you're looking

0:16:41.800 --> 0:16:43.720
<v Speaker 1>out the policies and we don't know them because they

0:16:43.760 --> 0:16:47.040
<v Speaker 1>don't have time to campaign between plenty more, don't Boris

0:16:47.120 --> 0:16:51.680
<v Speaker 1>Johnson and Richie Suonac, how different are they? I think

0:16:52.080 --> 0:16:54.280
<v Speaker 1>I think they have a sense of what Richie Sunac

0:16:54.360 --> 0:16:57.520
<v Speaker 1>would be like. They've seen obviously Boris Johnson in action,

0:16:57.720 --> 0:16:59.800
<v Speaker 1>and I think they probably think that can be navigated.

0:16:59.840 --> 0:17:02.120
<v Speaker 1>I think they honestly have no idea what Penny Mordant

0:17:02.120 --> 0:17:05.520
<v Speaker 1>would be like whatsoever. But increasingly when you do speak

0:17:05.600 --> 0:17:08.880
<v Speaker 1>to business and the city, they say they're not really

0:17:08.960 --> 0:17:11.680
<v Speaker 1>bothering with any of the Tories. They are engaging with

0:17:11.840 --> 0:17:16.960
<v Speaker 1>the Labor Party. They are talking to Rachel Reeves. They

0:17:17.200 --> 0:17:20.280
<v Speaker 1>are pretty encouraged by kir Starmer. And something I was

0:17:20.359 --> 0:17:23.600
<v Speaker 1>really struck by. I had a conversation with someone who

0:17:23.680 --> 0:17:27.200
<v Speaker 1>works at a big private equity firm and they made

0:17:27.240 --> 0:17:29.399
<v Speaker 1>exactly this point that they were only engaging with the

0:17:29.480 --> 0:17:32.200
<v Speaker 1>Labor Party at the moment. And I said, well, you know,

0:17:32.520 --> 0:17:34.920
<v Speaker 1>but what if Starmer comes in and they do do

0:17:35.280 --> 0:17:38.640
<v Speaker 1>a wealth tax or they hike up the inheritance sax.

0:17:38.680 --> 0:17:40.920
<v Speaker 1>You know what, actually do you think about that? And

0:17:41.400 --> 0:17:44.600
<v Speaker 1>they said the view inside their firm, which is made

0:17:44.680 --> 0:17:46.800
<v Speaker 1>up of lots of American people, lots of people from

0:17:46.840 --> 0:17:50.520
<v Speaker 1>the continent, was that it's okay as long as it's

0:17:50.560 --> 0:17:54.040
<v Speaker 1>not really egregious, not really sort of outside the norms

0:17:54.080 --> 0:17:57.040
<v Speaker 1>of what they think are acceptable. They would prefer to

0:17:57.080 --> 0:18:00.639
<v Speaker 1>see a labor government that's a pragmatic bunch, aren't they

0:18:00.680 --> 0:18:04.280
<v Speaker 1>really work with what they pragmas budge And you know

0:18:04.400 --> 0:18:07.520
<v Speaker 1>this firm in particular, they're they're holding back on investment

0:18:07.880 --> 0:18:10.080
<v Speaker 1>in the UK until they know what the hell is

0:18:10.119 --> 0:18:12.720
<v Speaker 1>going on, So you know, for for the UK's growth,

0:18:12.800 --> 0:18:16.119
<v Speaker 1>that's absolutely terrible. The really tricky thing that the Tories

0:18:16.200 --> 0:18:19.400
<v Speaker 1>have at the moment is Jeremy Hunt has been able

0:18:19.440 --> 0:18:22.040
<v Speaker 1>to calm markets because he's rowed back on those tax

0:18:22.119 --> 0:18:25.119
<v Speaker 1>cuts which would have required a lot of borrowing, and

0:18:25.840 --> 0:18:28.399
<v Speaker 1>spending cuts are now on the cards and that and

0:18:28.520 --> 0:18:31.200
<v Speaker 1>that calms markets because it means less borrowing, but it's

0:18:31.320 --> 0:18:35.200
<v Speaker 1>politically really tricky for them. So getting that balance right

0:18:35.280 --> 0:18:39.560
<v Speaker 1>between continuing to calm the markets and can't they still

0:18:39.680 --> 0:18:42.080
<v Speaker 1>need to cut They have some way to go to

0:18:42.400 --> 0:18:47.879
<v Speaker 1>really calm them more, but also not politically damaging themselves

0:18:48.119 --> 0:18:52.359
<v Speaker 1>so much that they're making spending cuts to the NHS

0:18:52.440 --> 0:18:55.680
<v Speaker 1>and to police and these things, which, to be honest,

0:18:55.800 --> 0:18:58.120
<v Speaker 1>might be required if they want to fail that whole

0:18:58.280 --> 0:19:01.760
<v Speaker 1>that they really need to And that balance I think

0:19:01.920 --> 0:19:04.119
<v Speaker 1>is going to be really really hard to strike on

0:19:04.160 --> 0:19:06.840
<v Speaker 1>the October th fst if indeed it still happens at

0:19:06.880 --> 0:19:09.160
<v Speaker 1>the end of the month. If it happens, so we've

0:19:09.200 --> 0:19:12.399
<v Speaker 1>had for four days, frankly chaos on the markets. Is

0:19:12.440 --> 0:19:16.960
<v Speaker 1>there a believe Catherine that the I guess extreme right

0:19:17.119 --> 0:19:20.760
<v Speaker 1>extreme left on both parties is now shaken out because

0:19:20.760 --> 0:19:23.080
<v Speaker 1>they do have to to, you know, work in the

0:19:23.160 --> 0:19:26.560
<v Speaker 1>parameter of the markets. Yes, I think that's one sort

0:19:26.600 --> 0:19:31.080
<v Speaker 1>of slight positive perhaps that there's a perception that on

0:19:31.200 --> 0:19:34.880
<v Speaker 1>the left we've gone through a period when the kind

0:19:34.920 --> 0:19:37.840
<v Speaker 1>of corbinate Corbin nights were in the ascendant and that

0:19:37.960 --> 0:19:42.320
<v Speaker 1>absolutely horrified business in the city. But actually also on

0:19:42.440 --> 0:19:44.480
<v Speaker 1>the right, I think there's a lot of sort of

0:19:44.560 --> 0:19:49.720
<v Speaker 1>views in mainstream finance that they thought the voices that

0:19:50.000 --> 0:19:52.359
<v Speaker 1>people like Liz Trust and quasi Quarte and we're listening

0:19:52.400 --> 0:19:55.680
<v Speaker 1>to work extremely unhelpful for the kind of UK's long

0:19:55.800 --> 0:20:00.479
<v Speaker 1>term prospects. That they had sort of fairly niche ideas

0:20:00.520 --> 0:20:03.919
<v Speaker 1>about what they claimed Brexit meant but didn't necessarily actually

0:20:04.000 --> 0:20:06.480
<v Speaker 1>serve the wider interests of the country, to do with

0:20:06.640 --> 0:20:10.960
<v Speaker 1>sort of tax cuts for nondoms and all sorts of

0:20:11.480 --> 0:20:15.240
<v Speaker 1>libertarians small smaller state ideas. So I do think that

0:20:15.359 --> 0:20:19.520
<v Speaker 1>in mainstream finance they think that if those people can

0:20:19.600 --> 0:20:21.879
<v Speaker 1>be cut out as a as a result of all

0:20:21.960 --> 0:20:25.439
<v Speaker 1>of this political chaos, starts a good thing, and then

0:20:25.480 --> 0:20:26.760
<v Speaker 1>you have to indulge me because I know we're all

0:20:26.760 --> 0:20:29.160
<v Speaker 1>obsessed with politics and the economy and markets, but I'm

0:20:29.160 --> 0:20:33.760
<v Speaker 1>also obsessed with WhatsApp groups of the Conservative Party. They

0:20:33.800 --> 0:20:37.600
<v Speaker 1>have emojis. I mean, like, do we know what Alex

0:20:37.600 --> 0:20:41.120
<v Speaker 1>Wicken was telling us yesterday that you know, they would

0:20:41.200 --> 0:20:42.920
<v Speaker 1>kind of send names to each other of who could

0:20:42.960 --> 0:20:44.440
<v Speaker 1>run or who could be chancellor. And there were a

0:20:44.520 --> 0:20:47.680
<v Speaker 1>lot of like exploding brain emojis and a lot of

0:20:48.320 --> 0:20:54.160
<v Speaker 1>vomit emo. I have one unnamed MP pretty much only

0:20:54.359 --> 0:20:59.399
<v Speaker 1>communicates with me by emojis. There's very colorful language as

0:20:59.400 --> 0:21:02.359
<v Speaker 1>well in Conservative Party WhatsApp groups, and there's a lot

0:21:02.440 --> 0:21:06.280
<v Speaker 1>of exploding heads. I had a um an ex minister

0:21:06.400 --> 0:21:09.080
<v Speaker 1>send me an exploding head after she resigned. No one

0:21:09.160 --> 0:21:16.399
<v Speaker 1>saw it coming that quickly, and I just this is

0:21:16.440 --> 0:21:18.440
<v Speaker 1>how we communicate with Dave. But I'm a journalist, so

0:21:18.520 --> 0:21:21.680
<v Speaker 1>he's like, what you can't write in sentences just emos.

0:21:21.880 --> 0:21:25.320
<v Speaker 1>You know those word clouds that polling companies have been doing,

0:21:25.359 --> 0:21:28.120
<v Speaker 1>and they should do that with purely emojis. And see

0:21:29.400 --> 0:21:32.520
<v Speaker 1>one in the middle. Welcome to the future. Thank you

0:21:32.600 --> 0:21:41.760
<v Speaker 1>so much, Thank you, thanks for listening to this week's

0:21:41.800 --> 0:21:44.119
<v Speaker 1>in the City. We'll be back next week. But in

0:21:44.240 --> 0:21:46.159
<v Speaker 1>the meantime, if you like our show, please head on

0:21:46.280 --> 0:21:49.840
<v Speaker 1>over to Apple Podcasts or wherever you listen to podcasts

0:21:50.080 --> 0:21:53.320
<v Speaker 1>and rate, review and subscribe. Also sign up now for

0:21:53.400 --> 0:21:55.639
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<v Speaker 1>Bloomberg dot com Slash Newsletters, or check out the show

0:21:59.119 --> 0:22:01.560
<v Speaker 1>notes for a link. And you know what else you

0:22:01.600 --> 0:22:04.680
<v Speaker 1>should now sign up for our new daily newsletter, Money Distilled,

0:22:04.960 --> 0:22:08.560
<v Speaker 1>where Bloomberg UK's John Steppek explains what market moves mean

0:22:08.840 --> 0:22:11.400
<v Speaker 1>for your money. This episode was hosted by ME Friends

0:22:11.440 --> 0:22:14.639
<v Speaker 1>in Laquax and Me David Merritt. It was produced by

0:22:14.680 --> 0:22:18.720
<v Speaker 1>Summersadi Special thanks to Catherine Griffith's Ellen Milligan and Alex

0:22:18.760 --> 0:22:19.119
<v Speaker 1>Wickham