1
00:00:02,400 --> 00:00:07,280
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:10,520 --> 00:00:13,399
Speaker 2: This is the Bloomberg Daybreak Europe podcast, available every morning

3
00:00:13,400 --> 00:00:16,639
Speaker 2: on Apple, Spotify or wherever you listen. It's Wednesday, the

4
00:00:16,680 --> 00:00:19,400
Speaker 2: twenty ninth of May in London. I'm Stephen Carroll. Coming

5
00:00:19,480 --> 00:00:22,599
Speaker 2: up today. Emmanuel Macron calls for Ukraine to be given

6
00:00:22,640 --> 00:00:26,160
Speaker 2: the green light to hit Russia with European supplied weapons.

7
00:00:26,640 --> 00:00:29,680
Speaker 2: In the UK election campaign, Labor pledges not to hike

8
00:00:29,840 --> 00:00:32,440
Speaker 2: taxes on the city as the party looks to woo

9
00:00:32,520 --> 00:00:36,680
Speaker 2: more business backers. Plus between a rock and a hard place,

10
00:00:36,960 --> 00:00:39,640
Speaker 2: there are now just hours on the clock for BHP

11
00:00:39,920 --> 00:00:43,480
Speaker 2: and Anglo American to agree a takeover deal or call

12
00:00:43,560 --> 00:00:46,720
Speaker 2: things off. Let's start with a roundup of our top stories.

13
00:00:47,159 --> 00:00:50,760
Speaker 2: France's Emmanuel Macron says Ukraine must be allowed to target

14
00:00:50,840 --> 00:00:55,160
Speaker 2: missile sites within Russia with weapons supplied by its European allies,

15
00:00:55,560 --> 00:00:59,160
Speaker 2: speaking during a joint press conference with German Chancellor Olaf Schultz,

16
00:00:59,240 --> 00:01:02,920
Speaker 2: the French President, and to emphasize Ukraine's right to defend itself.

17
00:01:03,320 --> 00:01:06,200
Speaker 3: Oh come on, how do we explain to the Ukrainians

18
00:01:06,600 --> 00:01:10,720
Speaker 3: that they must protect these areas around Kharkiv? If we

19
00:01:10,800 --> 00:01:14,319
Speaker 3: tell them that you can't attack the points from where

20
00:01:14,360 --> 00:01:17,640
Speaker 3: the missiles are being fired. In effect, we would be

21
00:01:17,680 --> 00:01:21,440
Speaker 3: telling them that we deliver you weapons that you can't

22
00:01:21,440 --> 00:01:25,920
Speaker 3: defend yourself. So we are maintaining the same framework. We think.

23
00:01:26,080 --> 00:01:30,440
Speaker 3: We must allow them to neutralize the military sites where

24
00:01:30,480 --> 00:01:33,960
Speaker 3: the missiles are being fired from from where Ukraine is

25
00:01:34,000 --> 00:01:37,000
Speaker 3: being attacked from them, but we cannot allow them to

26
00:01:37,080 --> 00:01:41,600
Speaker 3: pursue other targets in Russia, civilian or military.

27
00:01:42,560 --> 00:01:45,679
Speaker 2: Emmanuel macron was speaking as EU defense ministers consider whether

28
00:01:45,720 --> 00:01:49,520
Speaker 2: they will allow Ukraine to hit targets deeper inside Russian

29
00:01:49,600 --> 00:01:53,800
Speaker 2: territory with weapons sent by their member states. Neutralizing bases

30
00:01:53,840 --> 00:01:56,640
Speaker 2: inside Russia where some attacks are coming from, could lessen

31
00:01:56,680 --> 00:02:00,760
Speaker 2: the cost of defending Ukrainian cities with expensive missilesis. The

32
00:02:00,800 --> 00:02:04,120
Speaker 2: EU's foreign policy chief says the strategy would be acceptable

33
00:02:04,200 --> 00:02:08,160
Speaker 2: under international law. However, Belgium insists its weapons are only

34
00:02:08,200 --> 00:02:12,200
Speaker 2: to be used in Ukrainian territory. The French and German

35
00:02:12,240 --> 00:02:14,760
Speaker 2: leaders also agree to make rapid progress to deepen the

36
00:02:14,800 --> 00:02:18,679
Speaker 2: European Union's capital markets. Emmanuel Macrono says the EU's two

37
00:02:18,720 --> 00:02:22,240
Speaker 2: powerhouse economies will back the creation of a common savings

38
00:02:22,280 --> 00:02:25,720
Speaker 2: product to help finance, long term priorities such as the

39
00:02:25,720 --> 00:02:30,440
Speaker 2: green transition, AI, innovation and defense. Speaking to Bloomberg, Germany's

40
00:02:30,480 --> 00:02:33,799
Speaker 2: Deputy Finance Minister Floria on Tonkar says that the EU

41
00:02:33,960 --> 00:02:35,120
Speaker 2: needs to be brave.

42
00:02:35,720 --> 00:02:38,720
Speaker 4: Are we courageous enough to allow for banks which are

43
00:02:38,919 --> 00:02:44,120
Speaker 4: operating cross border in Europe, which are operating transnationally under

44
00:02:44,120 --> 00:02:47,720
Speaker 4: a common supervisor the ECB. Are we really allowing them

45
00:02:47,760 --> 00:02:50,600
Speaker 4: to use their capital where it's most efficient, or are

46
00:02:50,600 --> 00:02:53,760
Speaker 4: we ring fencing in every jurisdiction. Then we have a

47
00:02:53,800 --> 00:02:58,000
Speaker 4: fragmented banking market and therefore we lose economic perspective.

48
00:02:58,720 --> 00:03:01,200
Speaker 2: Floria and Tonkar spoke to Blueoomberg as Germany and France

49
00:03:01,240 --> 00:03:05,800
Speaker 2: announced they're now pushing for common supervision and harmonization of

50
00:03:05,840 --> 00:03:09,000
Speaker 2: insolvency rules. The EU has made a little progress on

51
00:03:09,040 --> 00:03:11,840
Speaker 2: its plan to create a single market for capital since

52
00:03:11,880 --> 00:03:15,440
Speaker 2: it was first unveiled close to a decade ago. In

53
00:03:15,480 --> 00:03:17,880
Speaker 2: the UK, the Labour Party says it's not looking to

54
00:03:17,960 --> 00:03:21,360
Speaker 2: increase taxes on bank profits. Bloomberg has learned about the

55
00:03:21,400 --> 00:03:23,760
Speaker 2: move to reassure the City as the party tries to

56
00:03:23,800 --> 00:03:27,520
Speaker 2: solidify its commanding lead in the polls and prepare for

57
00:03:27,600 --> 00:03:29,840
Speaker 2: government Bloomberg's tea how a Bio has more.

58
00:03:30,440 --> 00:03:33,160
Speaker 5: Rachel Reeves has ruled out raising income tax.

59
00:03:33,440 --> 00:03:36,640
Speaker 6: I want taxes to be lower, but unlike the Conservatives,

60
00:03:36,720 --> 00:03:39,680
Speaker 6: I won't make unfunded commitments.

61
00:03:39,160 --> 00:03:42,280
Speaker 5: And the Shadow Chancellor has ruled out raising National insurance

62
00:03:42,320 --> 00:03:43,440
Speaker 5: and corporation tax.

63
00:03:43,760 --> 00:03:46,680
Speaker 3: There are no additional tax rises needed beyond the ones

64
00:03:46,680 --> 00:03:47,480
Speaker 3: that I've set.

65
00:03:47,240 --> 00:03:50,680
Speaker 5: Out, And now Bloomberg has learned her party aren't looking

66
00:03:50,720 --> 00:03:53,600
Speaker 5: to raise levies on bank profits either. It's a clear

67
00:03:53,640 --> 00:03:57,320
Speaker 5: fiscal dividing line between Labor and Prime. Minister Rishi Sunax

68
00:03:57,400 --> 00:03:59,120
Speaker 5: promised tax breaks for pensioners.

69
00:03:59,280 --> 00:04:02,480
Speaker 7: We're going to increase of personal allowance for pensioners, delivering

70
00:04:02,480 --> 00:04:05,320
Speaker 7: a tax cut worth around one hundred pounds to millions

71
00:04:05,600 --> 00:04:09,280
Speaker 7: of pensioners, demonstrating our commitment to them, making sure that

72
00:04:09,320 --> 00:04:11,920
Speaker 7: we can deliver a secure future for them. And in

73
00:04:11,960 --> 00:04:14,960
Speaker 7: contrast to Labor parties that they opposed that policy, but with.

74
00:04:14,960 --> 00:04:17,839
Speaker 5: A commanding lead in the polls that hasn't shifted since

75
00:04:17,920 --> 00:04:22,000
Speaker 5: campaigning started last week, Labour's tax plans may become a

76
00:04:22,040 --> 00:04:26,080
Speaker 5: reality after polling day, yet their fiscal restraint has many

77
00:04:26,160 --> 00:04:29,479
Speaker 5: concerned at how they will fund government without a new

78
00:04:29,560 --> 00:04:33,640
Speaker 5: era of austerity in London Tia at a bio Bloomberg Radio.

79
00:04:35,240 --> 00:04:38,320
Speaker 2: The White House says an Israeli airstrike on an encampment

80
00:04:38,480 --> 00:04:41,480
Speaker 2: in Raffa will not lead to a freeze in additional

81
00:04:41,680 --> 00:04:45,880
Speaker 2: arms shipments to Israel. The Hamas run health ministry in

82
00:04:45,960 --> 00:04:50,000
Speaker 2: Gaza says forty five people, including children, were killed in

83
00:04:50,040 --> 00:04:54,080
Speaker 2: a fire following the bombing. US National Security Council spokesman

84
00:04:54,160 --> 00:04:56,880
Speaker 2: John Kirby says the strike did not cross the red

85
00:04:56,960 --> 00:05:00,440
Speaker 2: line of a large scale military operation, which Washingon has

86
00:05:00,480 --> 00:05:03,560
Speaker 2: warned Israel would carry consequences as a.

87
00:05:03,480 --> 00:05:04,440
Speaker 5: Result of this stroke.

88
00:05:04,480 --> 00:05:07,120
Speaker 8: On Sunday, I have no policy changes to speak to.

89
00:05:07,520 --> 00:05:08,440
Speaker 7: It just happened.

90
00:05:08,600 --> 00:05:10,279
Speaker 8: These railers are going to investigate it.

91
00:05:10,520 --> 00:05:12,440
Speaker 5: We're going to be taking great interest in what they

92
00:05:12,480 --> 00:05:14,799
Speaker 5: find in that investigation, and we'll see.

93
00:05:14,600 --> 00:05:15,320
Speaker 8: Where it goes from there.

94
00:05:16,400 --> 00:05:19,760
Speaker 2: Kirby's comments come after Israeli tanks reached the center of Rafa,

95
00:05:19,839 --> 00:05:22,320
Speaker 2: assigned the military could be nearing its goal of taking

96
00:05:22,440 --> 00:05:27,080
Speaker 2: full control of the southern Gaza city. South Africa holds

97
00:05:27,080 --> 00:05:30,760
Speaker 2: its tightest election in decades today, as Nelson Mandela's old

98
00:05:30,839 --> 00:05:34,919
Speaker 2: party faces the prospect of losing power. The African National

99
00:05:34,920 --> 00:05:37,360
Speaker 2: Congress has won every vote since the end of white

100
00:05:37,400 --> 00:05:40,680
Speaker 2: minority rule in nineteen ninety four, but a thirty three

101
00:05:40,760 --> 00:05:45,200
Speaker 2: percent employment rate, daily rolling blackouts, and the highest inequality

102
00:05:45,240 --> 00:05:50,280
Speaker 2: in the world has stirred discontent against the party. BHP

103
00:05:50,360 --> 00:05:52,640
Speaker 2: an Anglo American of less than twelve hours to find

104
00:05:52,640 --> 00:05:56,040
Speaker 2: a breakthrough on their forty nine billion dollar takeover plan.

105
00:05:56,240 --> 00:05:59,080
Speaker 2: Bloomberg has learned the two sides our near agreement on

106
00:05:59,240 --> 00:06:03,040
Speaker 2: valuing the copp Giant, but the complicated deal structure is

107
00:06:03,080 --> 00:06:06,200
Speaker 2: the main hurdle. Blomberg's Andrew James explains why.

108
00:06:06,080 --> 00:06:10,279
Speaker 9: The main problem is over the HP's requirement that Anglo

109
00:06:10,560 --> 00:06:14,159
Speaker 9: spin off majority stakes and a couple of South African miners.

110
00:06:14,600 --> 00:06:17,880
Speaker 9: Anglo argues that that's going to create too much risk

111
00:06:18,000 --> 00:06:20,520
Speaker 9: for its own shareholders, which are going to end up

112
00:06:20,600 --> 00:06:22,880
Speaker 9: owning the shares and those miners.

113
00:06:23,480 --> 00:06:26,359
Speaker 2: Andrew Jay is telling us that BHP may apply for

114
00:06:26,440 --> 00:06:30,440
Speaker 2: yet another extension, though Anglo American may refuse.

115
00:06:30,960 --> 00:06:31,159
Speaker 1: Now.

116
00:06:31,200 --> 00:06:33,560
Speaker 2: In a moment, we'll bring you more on Emmanuel Macron's

117
00:06:33,600 --> 00:06:37,120
Speaker 2: comments on Ukraine's defenses, plus the latest from the UK

118
00:06:37,200 --> 00:06:41,000
Speaker 2: election campaign. But another story that caught our eye this morning.

119
00:06:41,120 --> 00:06:43,360
Speaker 2: If you're thinking about a trip to Paris this summer,

120
00:06:43,360 --> 00:06:46,039
Speaker 2: perhaps for the Olympics. Helen Chandler Wilde has been looking

121
00:06:46,040 --> 00:06:48,679
Speaker 2: at some of the newest wave of both boutique hotels

122
00:06:48,680 --> 00:06:51,160
Speaker 2: in the French capital, which come under the umbrella of

123
00:06:51,279 --> 00:06:54,320
Speaker 2: affordable luxury. That means that rooms are priced between two

124
00:06:54,400 --> 00:06:56,520
Speaker 2: hundred and sixty and four and fifty euros a night,

125
00:06:56,600 --> 00:06:58,800
Speaker 2: or at least that's their starting prices, but it could

126
00:06:58,920 --> 00:07:02,039
Speaker 2: buy you access to some impressive rooftops, for example, one

127
00:07:02,040 --> 00:07:04,400
Speaker 2: with a view of the Santa Stas church in Chatelet,

128
00:07:04,560 --> 00:07:06,680
Speaker 2: or even a swimming pool with a ceiling courage and

129
00:07:07,000 --> 00:07:10,160
Speaker 2: floral frescoes. Helen points out in the piece that these

130
00:07:10,240 --> 00:07:12,040
Speaker 2: names are part of a new wave of hotels and

131
00:07:12,120 --> 00:07:15,520
Speaker 2: powers that are providing luxury standards but without the price

132
00:07:15,560 --> 00:07:17,840
Speaker 2: tags that run into the thousands of euros at some

133
00:07:17,920 --> 00:07:19,960
Speaker 2: of the palace hotels in the city. Some of the

134
00:07:19,960 --> 00:07:23,600
Speaker 2: restaurants sound pretty tempting as well. Do read Helen's piece

135
00:07:23,720 --> 00:07:27,120
Speaker 2: on the Bloomberg dot com or on the terminal. Well,

136
00:07:27,160 --> 00:07:28,800
Speaker 2: let's bring you more on our top story this morning,

137
00:07:28,840 --> 00:07:31,800
Speaker 2: Francis President says Ukraine must be allowed to target missile

138
00:07:31,880 --> 00:07:35,320
Speaker 2: sites inside Russia with European supplied weapons. He was speaking

139
00:07:35,320 --> 00:07:37,880
Speaker 2: at that joint press conference with Germany's chancellor during his

140
00:07:37,920 --> 00:07:40,520
Speaker 2: state visit to the country. This is EU defense ministers

141
00:07:40,560 --> 00:07:43,440
Speaker 2: have been debating the issue in Brussels. Our EMEA news

142
00:07:43,480 --> 00:07:47,120
Speaker 2: director Rosalind Mathson joins us now for more ross. How

143
00:07:47,120 --> 00:07:49,640
Speaker 2: big a step would this be for the EU to

144
00:07:49,680 --> 00:07:53,720
Speaker 2: allow their weapons to be used to strike Russia.

145
00:07:53,760 --> 00:07:56,920
Speaker 10: Well, what Ammanuel mcrown is talking about is something very specific,

146
00:07:57,000 --> 00:08:01,400
Speaker 10: which is missile cruise operating from basis inside Russia, not

147
00:08:01,480 --> 00:08:05,480
Speaker 10: sending European weapons into Russia wholesale, but it would still be.

148
00:08:05,520 --> 00:08:06,560
Speaker 8: A major step for them.

149
00:08:07,120 --> 00:08:12,040
Speaker 10: Basically, you've got Western weapons being used against Russia inside Russia,

150
00:08:12,080 --> 00:08:15,120
Speaker 10: not just in Ukraine. And there's some evidence at least

151
00:08:15,120 --> 00:08:18,840
Speaker 10: that that's happened already, perhaps even by accident, but this

152
00:08:18,880 --> 00:08:20,160
Speaker 10: would be an official policy.

153
00:08:20,720 --> 00:08:23,320
Speaker 8: And about that slow edging of countries in Europe in

154
00:08:23,320 --> 00:08:23,960
Speaker 8: the US.

155
00:08:23,800 --> 00:08:28,200
Speaker 10: Towards direct confrontation with Russia, and that's always been the

156
00:08:28,240 --> 00:08:31,400
Speaker 10: caution that bit by bit, NATO gets drawn in, the

157
00:08:31,480 --> 00:08:32,439
Speaker 10: lines get blurred.

158
00:08:32,520 --> 00:08:36,360
Speaker 8: Essentially, it's a NATO Russia war, not a Ukraine Russia war.

159
00:08:36,440 --> 00:08:39,520
Speaker 10: And that's been the concern amongst some in NATO, and

160
00:08:39,520 --> 00:08:42,800
Speaker 10: beyond that it leads the Russian president Vladimipterin to retaliate

161
00:08:43,200 --> 00:08:47,080
Speaker 10: against Europe, for example, because one of the justifications he made,

162
00:08:47,120 --> 00:08:49,080
Speaker 10: or at least one of the claims he made but

163
00:08:49,160 --> 00:08:52,000
Speaker 10: going into Ukraine, was that NATO was encroaching, he said,

164
00:08:52,120 --> 00:08:53,880
Speaker 10: ever closer to Russia.

165
00:08:53,920 --> 00:08:56,080
Speaker 8: So that's why this is very contentious.

166
00:08:57,320 --> 00:09:00,880
Speaker 2: How likely does secure a green and to allow this

167
00:09:01,240 --> 00:09:04,240
Speaker 2: look at this stage.

168
00:09:03,600 --> 00:09:05,480
Speaker 10: Well, there remains quite a bit of caution in the

169
00:09:05,640 --> 00:09:08,920
Speaker 10: US and Germany in particular about doing this. It's been

170
00:09:08,920 --> 00:09:12,200
Speaker 10: pushed quite heavily, as you said, by the French, given

171
00:09:12,240 --> 00:09:15,480
Speaker 10: those worries about the risk of a broader conflict, although

172
00:09:15,520 --> 00:09:18,800
Speaker 10: we've seen those concerns dissipate in other areas over time.

173
00:09:18,840 --> 00:09:21,800
Speaker 10: I remember there was initial worry about certain kinds of

174
00:09:21,880 --> 00:09:26,880
Speaker 10: military equipment going into Ukraine, including longer range missiles, and

175
00:09:26,920 --> 00:09:31,400
Speaker 10: that Ukraine would invite further retaliation by targeting Russia directly,

176
00:09:31,400 --> 00:09:32,120
Speaker 10: and perhaps that.

177
00:09:32,040 --> 00:09:34,360
Speaker 8: Caution does get shipped away over time.

178
00:09:34,440 --> 00:09:37,480
Speaker 10: Certainly it's something that Macron would have been pressing the

179
00:09:37,520 --> 00:09:41,560
Speaker 10: German Chancellor Olavschot heavily on as they met in Germany

180
00:09:42,080 --> 00:09:44,520
Speaker 10: together this week that was their time together yesterday and

181
00:09:44,559 --> 00:09:45,240
Speaker 10: their joint.

182
00:09:45,040 --> 00:09:46,720
Speaker 8: Pressa near billin.

183
00:09:46,840 --> 00:09:48,240
Speaker 10: But a lot of it depends on the way the

184
00:09:48,280 --> 00:09:50,520
Speaker 10: war is going, and a lot of it depends really

185
00:09:51,080 --> 00:09:53,480
Speaker 10: on the US, which is distracted by events in the

186
00:09:53,520 --> 00:09:56,760
Speaker 10: Middle East and in the longer term, its tensions with China,

187
00:09:56,800 --> 00:09:59,640
Speaker 10: and of course an election season going on. So the

188
00:09:59,679 --> 00:10:02,720
Speaker 10: question how much does Joe Biden want to commit and

189
00:10:02,760 --> 00:10:05,120
Speaker 10: what can he actually do and agree to before the

190
00:10:05,160 --> 00:10:06,360
Speaker 10: elections there in November.

191
00:10:07,760 --> 00:10:10,439
Speaker 2: Is taking this step or if he's talking about taking

192
00:10:10,480 --> 00:10:13,760
Speaker 2: this step a sign of how worried Makron other EU

193
00:10:13,840 --> 00:10:16,559
Speaker 2: leaders are about how the war is going in Ukraine,

194
00:10:16,720 --> 00:10:19,440
Speaker 2: or is it also about, you know, looking ahead towards

195
00:10:19,440 --> 00:10:23,000
Speaker 2: next week's European elections, these parties worried about shoring up

196
00:10:23,040 --> 00:10:24,280
Speaker 2: support for themselves.

197
00:10:25,640 --> 00:10:28,680
Speaker 10: Well, there is ongoing fighting, in particular around Haki, which

198
00:10:28,720 --> 00:10:31,600
Speaker 10: is close to the Russian border in the east.

199
00:10:31,600 --> 00:10:32,960
Speaker 8: That's a key city.

200
00:10:32,720 --> 00:10:36,800
Speaker 10: For Ukraine, and Russia seemingly surprised Ukraine with the extent

201
00:10:36,840 --> 00:10:39,840
Speaker 10: if it's pushed there in recent weeks, and Ukraine says

202
00:10:39,840 --> 00:10:42,520
Speaker 10: it's been holding the Russian forces back. But it's obviously

203
00:10:43,080 --> 00:10:45,319
Speaker 10: a tricky time, and that's because also of the use

204
00:10:45,320 --> 00:10:48,680
Speaker 10: of Russian missiles in the area. So it's probably mostly

205
00:10:48,720 --> 00:10:52,200
Speaker 10: a reflection of that. The EUO elections are likely to

206
00:10:52,240 --> 00:10:55,240
Speaker 10: be fought more on issues there, I say, even closer

207
00:10:55,240 --> 00:10:58,640
Speaker 10: to Hope than Ukraine, so you're talking about the economy, migration,

208
00:10:58,840 --> 00:11:01,720
Speaker 10: taxes and so on, and more than two years into

209
00:11:01,760 --> 00:11:02,080
Speaker 10: the war.

210
00:11:02,160 --> 00:11:03,720
Speaker 8: The reality is there are likely to be.

211
00:11:03,800 --> 00:11:07,960
Speaker 10: Votes for parties for Ukraine specifically, So it's probably less

212
00:11:08,040 --> 00:11:12,080
Speaker 10: about the elections, although it's important for Macron to be

213
00:11:12,160 --> 00:11:16,319
Speaker 10: seen to be strong and so on and states but

214
00:11:16,559 --> 00:11:19,560
Speaker 10: like into the elections, but it's probably really about the

215
00:11:19,600 --> 00:11:20,760
Speaker 10: state of the war on the ground.

216
00:11:21,960 --> 00:11:25,240
Speaker 2: Ras What has been made of the weakened state of

217
00:11:25,280 --> 00:11:29,160
Speaker 2: the Franco German relationship in recent years, particularly under these

218
00:11:29,280 --> 00:11:32,960
Speaker 2: leaders Emmanuel Macro and Olaf Schultz. Has this state visit

219
00:11:33,080 --> 00:11:36,280
Speaker 2: by Macran to Germany helped to improve that relationship.

220
00:11:37,840 --> 00:11:39,960
Speaker 8: Well, it is a tricky relationship, isn't it.

221
00:11:40,200 --> 00:11:43,719
Speaker 10: They clearly don't have a natural warm report. I mean,

222
00:11:43,760 --> 00:11:47,440
Speaker 10: some leaders click, others just don't, and they're very different.

223
00:11:47,600 --> 00:11:51,080
Speaker 10: Macron wants to be essentially the facto leader of Europe,

224
00:11:51,120 --> 00:11:53,600
Speaker 10: setting out his policies for the whole continent. Be it

225
00:11:53,640 --> 00:11:58,320
Speaker 10: on industrial policy, technology, defense. Always his grand vision and

226
00:11:58,360 --> 00:12:01,920
Speaker 10: the narrative I guess dynamic and nimble, whereas Olaf Schultz

227
00:12:02,080 --> 00:12:06,040
Speaker 10: is deliberate and cautious. But it's interesting we read a

228
00:12:06,040 --> 00:12:08,640
Speaker 10: recent story that shows the reality of how much Germany

229
00:12:08,640 --> 00:12:11,880
Speaker 10: has actually been sending Ukraine in weaponry. So perhaps actions

230
00:12:11,920 --> 00:12:16,000
Speaker 10: sometimes speak louder than words. But this is a key relationship.

231
00:12:16,080 --> 00:12:19,240
Speaker 10: The two biggest economies, a lot of shared challenges. This

232
00:12:19,360 --> 00:12:22,480
Speaker 10: did not look like a massively warm event. There's no

233
00:12:22,600 --> 00:12:26,520
Speaker 10: natural rapport again between them. There is quit of underlying tension,

234
00:12:26,600 --> 00:12:28,480
Speaker 10: but the main thing at least is they do seem

235
00:12:28,520 --> 00:12:29,120
Speaker 10: to be talking.

236
00:12:30,280 --> 00:12:33,080
Speaker 2: Okay, rosslad Matts and are AMA News director, thank you

237
00:12:33,160 --> 00:12:36,040
Speaker 2: very much for joining us this morning. Well, let's turn

238
00:12:36,080 --> 00:12:38,160
Speaker 2: out to the UK election campaign. The first in a

239
00:12:38,200 --> 00:12:40,800
Speaker 2: series of polls taken since riccally Seen that called the

240
00:12:40,840 --> 00:12:43,559
Speaker 2: vote last week have shown the Labor Party maintaining its

241
00:12:43,640 --> 00:12:46,960
Speaker 2: lead over the Conservatives. The opposition party was twenty three

242
00:12:47,040 --> 00:12:48,800
Speaker 2: points ahead of the Tories in the red Field and

243
00:12:48,800 --> 00:12:51,520
Speaker 2: Wilton Strategies survey. This as Labor has been seeking to

244
00:12:51,559 --> 00:12:55,079
Speaker 2: reassure business by saying it's not considering a winfold tax

245
00:12:55,160 --> 00:12:58,400
Speaker 2: on banks or a financial transaction tax for our UK

246
00:12:58,480 --> 00:13:01,440
Speaker 2: Pultric supporter James Walcock is with us now for more.

247
00:13:01,640 --> 00:13:01,880
Speaker 5: James.

248
00:13:01,920 --> 00:13:04,520
Speaker 2: Still more than five weeks to go before polling day.

249
00:13:04,559 --> 00:13:08,000
Speaker 2: But these polls won't give any comfort to the Conservative Party.

250
00:13:08,160 --> 00:13:11,120
Speaker 6: They weren't Stephen. But they also won't give much comfort

251
00:13:11,160 --> 00:13:13,160
Speaker 6: to lay Py in terms of changes, I mean basically

252
00:13:13,160 --> 00:13:14,600
Speaker 6: just to go through the numbers here, because these are

253
00:13:14,640 --> 00:13:16,960
Speaker 6: all minute by minute kind of poles looking much longer,

254
00:13:17,000 --> 00:13:20,079
Speaker 6: sort of trying to establish what is happening in sort

255
00:13:20,080 --> 00:13:23,080
Speaker 6: of the wider political sphere. Jail Partners, which is normally

256
00:13:23,080 --> 00:13:26,600
Speaker 6: the kind of most Tory favorable poll, squeezed on the poles.

257
00:13:26,600 --> 00:13:30,320
Speaker 6: It went to twelve points for Labour's majority rather than fifteen.

258
00:13:30,720 --> 00:13:33,680
Speaker 6: Salvation went up from nineteen to twenty three, and like

259
00:13:33,679 --> 00:13:36,559
Speaker 6: you said, Redfield went from twenty two to twenty three

260
00:13:37,240 --> 00:13:41,160
Speaker 6: within the marginal error in polling. Those moves aren't much.

261
00:13:41,720 --> 00:13:44,120
Speaker 6: It's worth saying the field work for Jail Partners, at

262
00:13:44,200 --> 00:13:46,680
Speaker 6: least the weld one that is most Toy favorable, was

263
00:13:46,760 --> 00:13:51,120
Speaker 6: all done before these latest policies from SHISUNAC were announced

264
00:13:51,280 --> 00:13:54,360
Speaker 6: started being announced over the weekend. I think long story

265
00:13:54,360 --> 00:13:57,880
Speaker 6: shorts nothing has changed. Polling wise, nothing has really cut

266
00:13:58,000 --> 00:14:03,120
Speaker 6: through for the public and at this points, Rishie's next

267
00:14:03,120 --> 00:14:05,920
Speaker 6: decision to call an election has not had a serious

268
00:14:06,200 --> 00:14:07,960
Speaker 6: polling dividend.

269
00:14:08,120 --> 00:14:10,680
Speaker 2: So focusing then on some of the policies we heard

270
00:14:10,720 --> 00:14:13,320
Speaker 2: from the shallow Chanceller rate to Reeves yesterday outlining some

271
00:14:13,400 --> 00:14:15,920
Speaker 2: of Labour's plans for the economy. What are the headlines

272
00:14:15,960 --> 00:14:16,200
Speaker 2: from that?

273
00:14:16,840 --> 00:14:19,880
Speaker 6: The headlines is she's not raising tax and she's very

274
00:14:19,960 --> 00:14:23,360
Speaker 6: very clear that she's going to be fiscally responsible. Labor

275
00:14:23,800 --> 00:14:26,280
Speaker 6: don't seem to feel the need to announce as much

276
00:14:26,360 --> 00:14:29,600
Speaker 6: new policy as the Conservators have at this stage. She

277
00:14:29,720 --> 00:14:32,360
Speaker 6: instead is reiterating very similar themes to what she said

278
00:14:32,360 --> 00:14:35,239
Speaker 6: in her Main's lecture of months back, which is stabilize

279
00:14:35,280 --> 00:14:40,400
Speaker 6: the economy, sought out public sector reform and then growth

280
00:14:40,440 --> 00:14:45,800
Speaker 6: will return and so on. That she is pledging to

281
00:14:46,920 --> 00:14:49,600
Speaker 6: basically not touch tax and not have any kind of

282
00:14:49,600 --> 00:14:51,920
Speaker 6: summer budget. And that's on Budget's quite crucial because when

283
00:14:51,960 --> 00:14:54,240
Speaker 6: George Osborne took over from Labor back in twenty ten,

284
00:14:55,840 --> 00:14:58,840
Speaker 6: he called a sort of emergency budget within weeks of

285
00:14:58,880 --> 00:15:02,520
Speaker 6: the election. She's saying no, no, we'll basically take power and

286
00:15:02,600 --> 00:15:05,560
Speaker 6: won't make any big fiscal changes until the autumn.

287
00:15:06,320 --> 00:15:09,160
Speaker 2: This meanwhiles Bimberg sources have been learning about the plans,

288
00:15:09,200 --> 00:15:13,120
Speaker 2: specifically to do with tax on business and on financial

289
00:15:13,120 --> 00:15:14,040
Speaker 2: services in particular.

290
00:15:14,720 --> 00:15:17,480
Speaker 6: Yes, I mean so we've learned that labor have ruled

291
00:15:17,480 --> 00:15:20,120
Speaker 6: out any kind of levy or windfall tax on the city.

292
00:15:20,400 --> 00:15:23,040
Speaker 6: That's in addition to national insurance that they've ruled out.

293
00:15:23,040 --> 00:15:25,960
Speaker 6: They've ruled out any corporation tax, they've ruled out any

294
00:15:25,960 --> 00:15:29,080
Speaker 6: surtilet on banks going higher, and they've ruled out income tax.

295
00:15:29,360 --> 00:15:31,320
Speaker 6: This we are starting to get to the point where

296
00:15:31,720 --> 00:15:34,240
Speaker 6: there aren't many options left if they were to want

297
00:15:34,320 --> 00:15:36,600
Speaker 6: to raise government revenue. Stephen, and that is something that

298
00:15:36,640 --> 00:15:40,200
Speaker 6: economists like Dan Hanson, Bloomberg's chief UK econoists, do worry

299
00:15:40,200 --> 00:15:43,800
Speaker 6: about that they effectively are crafting themselves these fiscal handcuffs,

300
00:15:45,280 --> 00:15:49,120
Speaker 6: given there are big issues with headroom.

301
00:15:49,400 --> 00:15:51,960
Speaker 2: This is Bloomberg Daybreak Europe. You're a morning brief on

302
00:15:52,040 --> 00:15:55,240
Speaker 2: the stories making news from London to Wall Street and beyond.

303
00:15:55,520 --> 00:15:58,680
Speaker 1: Look for us on your podcast feed every morning on Apple,

304
00:15:58,840 --> 00:16:01,520
Speaker 1: Spotify and any where else you get your podcasts.

305
00:16:01,560 --> 00:16:04,600
Speaker 2: You can also listen live each morning on London DAB Radio.

306
00:16:04,640 --> 00:16:07,320
Speaker 2: The Bloomberg Business App and Bloomberg dot Com.

307
00:16:07,360 --> 00:16:10,160
Speaker 1: Our flagship New York station is also available on your

308
00:16:10,160 --> 00:16:14,880
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

309
00:16:15,120 --> 00:16:16,440
Speaker 1: I'm Caroline Hepka and.

310
00:16:16,360 --> 00:16:19,040
Speaker 2: I'm Stephen Carol. Join us again tomorrow morning for all

311
00:16:19,040 --> 00:16:21,480
Speaker 2: the news you need to start your day right here

312
00:16:21,520 --> 00:16:24,400
Speaker 2: on Bloomberg day Break Europe