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Speaker 1: Good morning.

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Speaker 2: It's Wednesday, the eighth of November here in London. This

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Speaker 2: is the BlueBag Daybreak podcast.

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

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Speaker 3: Coming up today, Saudi Arabia's investment minister tells us the

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Speaker 3: normalization of diplomatic ties with Israel is still possible.

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Speaker 2: More than a quarter of Footy one hundred chief financial

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Speaker 2: officers have left their jobs so far this year.

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Speaker 3: Plus we have a special report on how Nesley's factories

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Speaker 3: in Ukraine are adapting to air raids and power cuds.

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Speaker 1: Let's start with a round up of our top stories.

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Speaker 3: The French bank Crediaga could posting third quarter results that

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Speaker 3: beat analyst estimates. Third quarter net income came in at

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Speaker 3: one and three quarter billion euros. Revenues rose by nineteen

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Speaker 3: percent net income rose by thirty three percent, both ahead

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Speaker 3: of estimates. The increase is driven by income from lending

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Speaker 3: in Italy under twenty six percent jump in fixed income

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Speaker 3: trading during a quarter where other European banks saw steep declines.

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Speaker 1: Now to our top stories.

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Speaker 2: Saudi Arabia's Minister sort of Investments says that talks toward

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Speaker 2: a normalization of ties with Israel remain on the table,

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Speaker 2: despite the Kingdom's criticism of Israeli military action in Gaza.

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Speaker 2: Speaking exclusively to Bloomberg at the New Economy Forum in Singapore,

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Speaker 2: Khalid Alfhali said that there is a need for closer

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Speaker 2: ties across the Middle East.

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Speaker 4: You know, when those discussions were taken place and his

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Speaker 4: Roel Highs, the Crown Prince was clear that it is

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Speaker 4: contingent on a pathway to peaceful resolution of the Palestinian questions.

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Speaker 4: That was on the table, that remains on the table.

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Speaker 4: And obviously the setback over the last month has brought

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Speaker 4: that has clarified why was Saudi Arabia so adamant. The

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Speaker 4: resolution of the Palestinian conflict has to be part of

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Speaker 4: a broader normalization in the Middle East.

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Speaker 2: Saudi Arabia is Alphali speaking. The comments come after efforts

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Speaker 2: to build a relationship between Saudi Arabia and Israel were

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Speaker 2: thrown into doubt by the ongoing war in Gaza.

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Speaker 3: Israel has confirmed that its troops are fighting inside Gaza

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Speaker 3: City as they close in on its center. The news

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Speaker 3: comes as the Biden administration says they're in discussions with

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Speaker 3: Israel about respecting humanitarian law and keeping our strikes in

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Speaker 3: the Palestinian territory proportional. The hamast On Health Ministry says

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Speaker 3: that more than ten three hundred people have now been

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Speaker 3: killed in Gaza since the war began, including at least

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Speaker 3: four thousand children. In an interview, Israel's Minister of Strategic Affairs,

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Speaker 3: Ron Dhurmer, was asked to respond to the scale of

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Speaker 3: the Palestinian casualties.

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Speaker 5: Every civilian who was killed in Gaza is a tragedy,

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Speaker 5: and they are the unintended consequence of legitimate warfare. It

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Speaker 5: happens in every war, particularly in a war where we're

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Speaker 5: dealing with an enemy that uses their own civilians as

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Speaker 5: human shields.

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Speaker 3: Mondermer's comments come a month after the Hamas attack on

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Speaker 3: Israel that killed one thousand, four hundred people.

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Speaker 2: Now, China's Vice President Hanjeng has talked up improving ties

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Speaker 2: with the United States at the Bloomberg New Economy Forum

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Speaker 2: in Singapore. It comes as the US President is expected

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Speaker 2: to meet the Chinese leader, Shijingping for talks next week

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Speaker 2: in San Francisco. Han praised recent meetings between the two countries.

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Speaker 6: More recently as agreed by the two sides, China and

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Speaker 6: the United States have had more important high level interactions.

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Speaker 6: These interactions have sent out positive for signals and raised

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Speaker 6: the expectations of the international community on the improvement of

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Speaker 6: China US relations.

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Speaker 2: China's Vice President, speaking through a translator, he warned against

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Speaker 2: protectionism in the world, emphasizing that China remains committed to

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Speaker 2: opening up its economy, and while hand described China's economy

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Speaker 2: as recovering, he said the global recovery lacks momentum.

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Speaker 3: Blackrock says the managin of cash worting on the sidelines

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Speaker 3: as a major issue facing global investors. Speaking of the

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Speaker 3: Global Financial Leader's Investment Summit in Hong Kong, the firm's

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Speaker 3: head of the Global client business, Mark Weedman, said, quote,

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Speaker 3: there's about four trillion dollars of cash that is slashing

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Speaker 3: around waiting for action, adding that he has no idea

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Speaker 3: when it will be reinvested. The comments come as the

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Speaker 3: money market funds saw their assets hit a fresh record

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Speaker 3: earlier this year, with interest rates north of five percent,

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Speaker 3: luring investors away from riskier bets.

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Speaker 2: Thirty one hundred finance chiefs so are leaving their jobs

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Speaker 2: at the highest rate in five years. Bloomberg's TIA Adebayo

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Speaker 2: reports now.

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Speaker 7: A tough economy and regulatory requirements means many chief financial

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Speaker 7: officers are reassessing their positions. More than a quarter have

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Speaker 7: already left this year, double the same period in twenty

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Speaker 7: twenty two. According to research by Russell Reynolds, depressed bonuses

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Speaker 7: and the allure of private equity and ranks the main

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Speaker 7: reasons for leaving. The recruiter said that long term incentives

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Speaker 7: for CFOs were hit during the pandemic, and their fate

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Speaker 7: elia to recover has played a role in encouraging retirement.

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Speaker 7: Earlier this year, London Stock Exchange chief Julia Hoggitt called

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Speaker 7: for constructive discussion on UK exec pay, warning it often

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Speaker 7: well below global benchmarks. In London, Tiwa Adebayo Bloomberg Radio.

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Speaker 3: The International Monetary Fund says high interest rates are unlikely

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Speaker 3: to lead Europe's economy to crash. In a new report,

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Speaker 3: the IMF forecast the region will achieve a soft landing,

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Speaker 3: with growth slowing to one point three percent this year

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Speaker 3: before picking up slightly in twenty twenty four. However, the

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Speaker 3: International Financial Institution does say that getting inflation back to

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Speaker 3: target in the Euro Area could take many years, adding

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Speaker 3: that the cost of easing monetary policy too early would

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Speaker 3: be quote substantial.

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Speaker 2: Now Britain faces a decade in the doldrums, according to

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Speaker 2: the National Institute of Social and Economic Research. The think

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Speaker 2: tank says that unless the government steps up public investment,

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Speaker 2: the UK will continue to see poor growth and worsening

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Speaker 2: regional in qualities. NISA warned against cutting taxes before the

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Speaker 2: next election. It comes after King Charles's speech at the

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Speaker 2: ceremonial state opening of Parliament on Tuesday, which set out

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Speaker 2: an election focus legislative agenda. Sunak's government announced tougher sentences

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Speaker 2: for criminals, limited housing reforms, and more drilling for Naughti

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Speaker 2: oil and gas, which the Prime Minister explained.

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Speaker 8: Here we'll be bringing forward legislation that supports our Nazi

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Speaker 8: oil and gas industry, in supporting the two hundred thousand

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Speaker 8: jobs in that sector, but also reducing our reliance on

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Speaker 8: foreign imported energy. That's the right thing to do.

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Speaker 2: Suna's party faces a twenty point poll deficit against the

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Speaker 2: main opposition Labor Party, who described the Tory offer as

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Speaker 2: quote gimmicks, division and more of the same. Now Christmas

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Speaker 2: is coming, Stephen, but that for some, for many, maybe

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Speaker 2: in the UK means more debts cashtrack Britons are expected

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Speaker 2: to turn to buy now, pay later deals. I've been

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Speaker 2: reading up on the latest forecast for BNPL, which the

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Speaker 2: regulators have been quite worried about. Adobe Digital Insights says

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Speaker 2: that apparently these BNPL loans could increase by almost nine

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Speaker 2: percent to a record three point seven billion pounds.

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Speaker 1: I thought that was a very striking figure.

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Speaker 3: Yeah, well, this is of course, we're still waiting for

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Speaker 3: the regulatory promise of how the sector is going to

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Speaker 3: be managed to come through. Of course, the regulation appears

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Speaker 3: to have stalled, no update since February on the Treasury

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Speaker 3: paper that's meant to give the Financial Conduct Authority powers

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Speaker 3: to oversee the companies that offer these kind of loans.

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Speaker 3: The FAA has stepped in some specific case to try

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Speaker 3: and protect consumers. But it's an area because the interest

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Speaker 3: rates can be very high. It can put people in

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Speaker 3: a situation where it makes it very difficult for them

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Speaker 3: to repay these loans, and the idea that you know,

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Speaker 3: there's a call for more oversight of how these loans

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Speaker 3: are handed out.

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Speaker 2: Yeah, absolutely, that's one of the stories that we've been

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Speaker 2: looking at. Here certainly becaused on the UK. But let's

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Speaker 2: return now to well, obviously the top story that we've

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Speaker 2: been covering for the last month and the latest today

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Speaker 2: on the Middle East, Israel says that its troops are

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Speaker 2: continuing to fight inside girls the city. Now, this is

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Speaker 2: Saudi Arabia's investment minister. You heard it just a moment ago,

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Speaker 2: Halid Alphali saying that talks on normalizing ties between Saudi

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Speaker 2: Arabia and Israel are actually still on the table, but

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Speaker 2: they hinge on the Palestinian question. Joining us now is

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Speaker 2: Bloomberg's Turkey bureau chief, Honor, and good morning, Honor. Alphali's

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Speaker 2: statement about ties with Israel, it does seem quite significant.

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Speaker 2: He was asked about whether oil would be used as

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Speaker 2: a way of achieving a cease fire in the fighting

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Speaker 2: between Israel and Hamas. How important were was Alphali's statement?

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Speaker 9: I think both of his comments were quite important. This

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Speaker 9: was the first time top SODI official on the record

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Speaker 9: in public talk about the possibility of continuing normalization talks

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Speaker 9: with Israel, which I've obviously been disrupted by what happened

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Speaker 9: a month ago and the ensuing war. But it's clear

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Speaker 9: that Saudi Arabia still takes this possibility seriously.

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Speaker 7: But it's also.

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Speaker 9: Important to note that their position pre war position has

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Speaker 9: not changed an If anything, what happened over the past

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Speaker 9: month seems to have reinforced their perception that without a

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Speaker 9: sustainable solution, whatever that may be, and however difficult it

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Speaker 9: might look, especially right now, without such a solution, there's

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Speaker 9: no point in trying to pursue a normalization of Israel

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Speaker 9: because sooner or later, developments in the region such as

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Speaker 9: the one that we've seen over the past month, is

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Speaker 9: going to poison the environment. It's going to make that

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Speaker 9: kind of normally normalization unfeasible. That's been that's been the

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Speaker 9: Southeast tense since early on. But this is the first

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Speaker 9: time at tom Saudi officials, as you said, has come

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Speaker 9: up publicly and said, yes, possibly still on the possibility

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Speaker 9: of the normalization salon the table, but here are the

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Speaker 9: conditions now the second part of your question. That's also

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Speaker 9: significant because again, no one really the last month thought

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Speaker 9: this was a repeat of nineteen seventy three. For those

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Speaker 9: were unfamiliar with the history of oil boycotts, that's the

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Speaker 9: last time, just as far as I can remember, that

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Speaker 9: there was a sort of wide ranging boycott by oil

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Speaker 9: producers where where producers used their production to effect.

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Speaker 5: Certain political changes.

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Speaker 9: It's obvious from how that falls responds yesterday in Singapore

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Speaker 9: that that is not an option, that is not a

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Speaker 9: possibility that anyone seriously entertaining at the moment. But it

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Speaker 9: is important that came from someone like haw that file

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Speaker 9: not only is an investment minister, but again he's actually

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Speaker 9: head of study or uncle, really knowledgeable and familiar with

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Speaker 9: sou Revenu oil policy and how it can or should

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Speaker 9: be used in foreign affairs, if at all. So it's

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Speaker 9: very important that it came from him.

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Speaker 3: At the same time, on the ground in Gaza, Honor,

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Speaker 3: we know Israel saying that its troops have entered the

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Speaker 3: center of Gaza city, and of course the humanitarian situation

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Speaker 3: there are still very very difficult.

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Speaker 9: True humanitary in situation in Gaza is difficult, and it's

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Speaker 9: risening every day because simply because still there is no

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Speaker 9: mechanism in place that allows more significant amounts of humanitarian

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Speaker 9: aid to flow into Gaza. The UN's own estimate as

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Speaker 9: early well as recently as last week, was that a

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Speaker 9: fraction of what Gaza needs is now going through every

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Speaker 9: day from Egypt into Gaza's strip through the rough crossing.

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Speaker 9: Has there been an increasing in recent days, Yes, certainly

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Speaker 9: has been. We can see that from a number of

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Speaker 9: trucks going in every day. But is it enough to

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Speaker 9: meet the needs of more than two million people who

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Speaker 9: are still in Gaza City, who don't have any access

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Speaker 9: to meaningful amounts of water or power or food. It's

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Speaker 9: certainly not, and it's a consensus. It's a consensus opinion

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Speaker 9: held by many NGOs, including the UN's own mentoring arm

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Speaker 9: operating in the Gazas City as far as we know.

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Speaker 2: Okay, Honor, thank you so much for being with us

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Speaker 2: this morning. That is Blenberg's Turkey beewer chief, Honor and

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Speaker 2: giving us the latest details when it comes to the

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Speaker 2: Middle East.

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Speaker 3: Of course, as the war in Israel has dwarves in

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Speaker 3: Israel and Hamas to take the focus of Ukraine, but

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Speaker 3: fighting ranges on there too. Russian drones and missiles targeted

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Speaker 3: Ukraine and infrastructure in recent days, but multiinationals like Nesle

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Speaker 3: continue to produce everyday staples such as chocolate, wafers and

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Speaker 3: mayonnaise there. Our consumer goods reporter Dasha Fantasievia has been

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Speaker 3: to western Ukraine to see firsthand how its cites there

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Speaker 3: have found a new rhythm and she joins us, Now,

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Speaker 3: datta good morning to you. How has Nesle adapted in

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Speaker 3: Ukraine to keep operating?

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Speaker 10: Good morning. So they've built obviously, they've built bomb shelters

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Speaker 10: and they've got a whole system for what happens when

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Speaker 10: workers go down to a bomb shelter, which is sometimes

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Speaker 10: for two or three hours, because depending on where you

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Speaker 10: are on the production line, your products are potentially going

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Speaker 10: to have to get thrown out, Others are going to

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Speaker 10: have to get re recycled into the produce, Others are

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Speaker 10: okay to use. And really the priority has been the

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Speaker 10: safety of staff. And they've got one factory that's within

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Speaker 10: artillery range essentially of the Russian border. So they've built

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Speaker 10: these shelters that are overground that you can get to

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Speaker 10: within ten seconds. It's quicker than air raids.

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Speaker 2: Look, that reality is staggering, isn't it. I mean, in

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Speaker 2: terms of the challenges, such enormous challenges. What did you

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Speaker 2: think was the most difficult thing about trying to do

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Speaker 2: business in that sort of environment.

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Speaker 10: I think it sounded like and what people said repeatedly

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Speaker 10: was that it's the whole challenge of dealing with when

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Speaker 10: colleagues lose someone, when someone has to go to war,

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Speaker 10: when someone's injured, going down into the bomb shelter and

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Speaker 10: worrying where is your family? You know you're safe, And

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Speaker 10: I think Nesley's had to do that sort of step up,

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Speaker 10: that psycho social support that in varying degrees, all big

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Speaker 10: corporates have to a whole different level. I interviewed a

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Speaker 10: woman who'd lost her husband and she was at the

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Speaker 10: same time a manager, so she went back to work

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Speaker 10: quite quickly and actually found solace in.

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Speaker 3: That Nestle at the same time has this business that's

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Speaker 3: expanding in Ukraine, but also has a business in Russia.

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Speaker 3: How has it balance those too.

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Speaker 10: It's a bit awkward, I think because in Russia the

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Speaker 10: business is larger. It's got six factories in Russia, seven

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Speaker 10: thousand workers, and it's been under pressure to leave because

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Speaker 10: the argument's sort of why you on the one hand

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Speaker 10: supporting Ukraine as all victory for Ukraine, but on the

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Speaker 10: other hand, Russians who potentially supported this invasion get to

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Speaker 10: eat you know, Maggie stock Cubes, et cetera. But it's

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Speaker 10: also very, very difficult to leave as we saw with

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Speaker 10: dan On and Carlsberg, they were going to exit, but

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Speaker 10: they had their assets seized so Russia. So Nesle and

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Speaker 10: other multinationals continue paying taxes in the country. There's not

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Speaker 10: necessarily a better option.

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