Speaker 1: This is Bloomberg Daybreak here for this Thursday, the sixth
Speaker 1: of April in London. Coming up today, chime Offensive, Makran
Speaker 1: and Vanderline meet China's she in Beijing, Mester's impass. The
Speaker 1: Cleveland Fed president tells Bloomberg she disagrees with Wall Street
Speaker 1: bets on rate cuts, bonus bubble bursts, Switzerland's government orders
Speaker 1: cuts to extra pay for credit, sweet success and managers,
Speaker 1: Britain's latest border woes, and a Tory MP's failed roll
Speaker 1: of the dice. Those are the stories we're looking at
Speaker 1: in today's papers. And I'm Leanne Gerns. Plus the arrest
Speaker 1: of the husband of Scotland's former leader, Nicholas Sturgeon throws
Speaker 1: the UK's election max into question. That's all straight ahead
Speaker 1: on Bloomberg Daybreak. Europe the business news you need to
Speaker 1: start your day in just one fifteen minute podcast on Apples, Spotify,
Speaker 1: the Bloomberg Business app and everywhere you get your podcasts.
Speaker 1: Good morning, I'm Stephen Carol and I'm Caroline Heger. Here
Speaker 1: are the stories that we're following today. French President Tommanuel
Speaker 1: Macron and EU Commissioned President for Ursulavanja Line meet Chinese
Speaker 1: leader shooting paying Today, the parent join a list of
Speaker 1: European leaders have made the trip to the world's second
Speaker 1: largest economy since the beginning of the Russian invasion of Ukraine.
Speaker 1: Speaking through a translator, Emmanuel Macron said, it's better to
Speaker 1: engage with the country than to cut them off. Talking
Speaker 1: directly to China about this conflict, the Russian aggression. What
Speaker 1: is at stake, the consequences for our Europe, the consequences
Speaker 1: for the Near East and Middle East, as well as
Speaker 1: for the African continent and so many others. It means
Speaker 1: to try and engage them in a strategic relationship that
Speaker 1: may be more complex than what we would like. This
Speaker 1: is what I will discuss. You already understood that tomorrow
Speaker 1: in the day with the President, we will try to
Speaker 1: build in a way engage China toward a shared responsibility
Speaker 1: for peace and stability. The French President's over has come
Speaker 1: as Europe tries to balance trade and investment interests with
Speaker 1: China with finding a solution to Ukraine at a time
Speaker 1: of heightened tensions between Washington and Beijing. Meanwhile, in the US,
Speaker 1: how speaker Kevin McCarthy met with Taiwan's president Ti Ing
Speaker 1: when in a show of solidarity, Tai said that it
Speaker 1: is no secret that peace and democracy are facing unprecedented
Speaker 1: challenges in her country. McCarthy told Bloomberg that bipartisanship is
Speaker 1: essential when talking to China. We've never spoken with one
Speaker 1: voice when it comes to China. We've gone from administration administration.
Speaker 1: So when I became Speaker, we created a select committee
Speaker 1: and one hundred and forty six Democrats vote for it.
Speaker 1: You've watched Democrats and Republicans here together. I think that
Speaker 1: would even foster a stronger relationship with China, because China
Speaker 1: would understand where our boundaries are. They won't worry about
Speaker 1: all one party saying something. How Speaker Kevin McCarthy there
Speaker 1: was talking to Bloomberg's Amory Haddern in California. One area
Speaker 1: that he warned Bypasses and Agreement was struggling with is
Speaker 1: the US debt ceiling, which McCarthy says wool Street should
Speaker 1: be worried about, speaking of things Wall Street should be
Speaker 1: worried about. Cleveland Fed President Lauretta Mester says the Federal
Speaker 1: Reserve isn't planning rate cuts this year. In an exclusive interview,
Speaker 1: sh Tell Bloomberg's McKee, the Center Bank has different priorities
Speaker 1: than the markets. We've seen periods where the markets have
Speaker 1: one view of what's going to happen in the economy
Speaker 1: and the Fed has another view, and so I think
Speaker 1: we see things a little bit differently in terms of
Speaker 1: what the appropriate monetary policy is given where the economy
Speaker 1: is and where it's going. We certainly are focused on
Speaker 1: inflation and making sure that inflation gets back down to
Speaker 1: two percent over time. The Cleveland Fed President's comments come
Speaker 1: after ADP data and the Jolts Report showed a softening
Speaker 1: in the US labor market. Bloomberg Radio and Television with
Speaker 1: a full coverage of tomorrow's US jobs report released at
Speaker 1: one thirty pm London time. Now, the Swiss government will
Speaker 1: cancel or cut the outstanding bonuses of top Credit Swiss executives.
Speaker 1: Under the plan, board members will have all outstanding payments
Speaker 1: for twenty twenty two scrapped. Managers of one and two
Speaker 1: levels below the board will have their bonuses reduced by
Speaker 1: up to fifty percent. The movie effects around a thousand
Speaker 1: Credit Swie employees. Police in Scotland have released Peter Murrell
Speaker 1: Nicolas Sturgeon's husband without charge last night. He'd been detained
Speaker 1: as he was the former chief executive of the SMP
Speaker 1: in relation to an investigation into the party's finances. Scotland's
Speaker 1: new First Minister, Homsa Yusuf, says that the party wants
Speaker 1: to reassure voters. In my first meeting as Leader of
Speaker 1: the ANC on Saturday was to get the ANC to
Speaker 1: agree to a course of action, our own governance, our
Speaker 1: own transparency, because people are do have questions about the
Speaker 1: party about transparency, a better finances. That was Scotland's First Minister,
Speaker 1: Hommesa Yusuf, who succeeded Nicholas Sturgeon last week. Sturgeon said
Speaker 1: she had no prior knowledge of Police Scotland's plans. The
Speaker 1: UK government has sought to distance itself from the Confederation
Speaker 1: of British Industry following allegations of sexual misconduct. Sources tell
Speaker 1: Bloomberg that multiple departments have postponed meetings with Britain's biggest
Speaker 1: business lobby. Companies are also reviewing a their membership of
Speaker 1: the lobby group, which has appointed the law firm Fox
Speaker 1: Williams to investigate the allegations, which initially resulted in Tony
Speaker 1: dancers stepping aside as its direct at General last month.
Speaker 1: So those are top stories on the program this morning,
Speaker 1: looking ahead to one of the big events that we're
Speaker 1: watching in the coming days. Of course, you've had the
Speaker 1: confirmation of the dates of President Joe Biden's visit to
Speaker 1: Northern Ireland and to Ireland as well. This of course
Speaker 1: coming as this weekend marks twenty five years since the
Speaker 1: signature of the Good Friday Peace Agreement. This is going
Speaker 1: to be a big week of events in Ireland next
Speaker 1: week and Biden going to start in Northern Ireland. Of course,
Speaker 1: focus there on the political situation they're still no functioning
Speaker 1: parachuting assembly, yes, instorement and then moving on he's going
Speaker 1: to make his big public speech in the west of
Speaker 1: Ireland to the town of Ballina and County Mayo, where
Speaker 1: his ancestors are from. That's where his big public event
Speaker 1: is going to be held, big pump and ceremony. We'll
Speaker 1: be talking a lot about this story both here on
Speaker 1: Daybreak Europe and on our UK Politics show as well.
Speaker 1: We have interviews with the people who were in the
Speaker 1: room twenty five years ago and that peace agreement was signed. Yeah,
Speaker 1: I mean so momentous nineteen ninety eight, and it's amazing
Speaker 1: that we've got people with their reflections on how that
Speaker 1: came about, a sort of feat that nobody thought was
Speaker 1: really possible until it was done. Also, though I thought
Speaker 1: that Joe Biden was going to be addressing the Irish
Speaker 1: Parliament as well, he's going to be speaking to the
Speaker 1: Ireland Dublin as well, the meeting the Joint House of
Speaker 1: the Rafters. They're coming back from their holidays to speak
Speaker 1: to him. Okay, very interesting. Also we hear that the
Speaker 1: former US president Bill Clinton and Hillary Clinton also expected
Speaker 1: to attend events in Northern Ireland this month too, So
Speaker 1: lots of big visits really of global leaders around the world. Yeah,
Speaker 1: certainly we're speaking of leaders of global global leaders traveling
Speaker 1: at to different places. Imanuel Macron from France, the You
Speaker 1: Commission president or Savannderline or meeting China's president. She later
Speaker 1: this is part of a three day trip to China.
Speaker 1: Macron started by saying that Europe can take a more
Speaker 1: moderate role towards Beijing. Let's bring in our Asia government
Speaker 1: Managing editor Daniel Tankate for more and what should we
Speaker 1: be expecting from this meeting of these presidents later on.
Speaker 1: Those are a couple of things we're watching for. The
Speaker 1: biggest is just any sort of progress on Ukraine. Emmanuel
Speaker 1: mccron was in Beijing yesterday. He said he thought China
Speaker 1: could play a major role in helping to bring an
Speaker 1: end to the Council due to its relationship with Russia.
Speaker 1: Now this is significant given that France is a G
Speaker 1: seven member, it's a permanent member of the UN Security Council.
Speaker 1: So the endorsement for Shiji and Ping's really vague blueprint
Speaker 1: on Ukraine does help China immensely there. The other thing
Speaker 1: we're watching is any sort of business deals to come
Speaker 1: out of it. You know, China has been isolated for
Speaker 1: the past couple of years with these strict COVID zero restrictions.
Speaker 1: They've pushed off a lot of businesses now facing increased
Speaker 1: pressure from the US on sanctions and other things. So
Speaker 1: China is keen to get more international business into the country,
Speaker 1: and we'll be watching to see what deals come out
Speaker 1: of this. Okay, that's interesting. So how much of a
Speaker 1: contrast should we expect then with relations with the US,
Speaker 1: which you know, it's hard to measure exactly how high
Speaker 1: the tensions are, but they are ever present. Yeah, I
Speaker 1: think just the fact that McCrone is there, it's someone
Speaker 1: that China views as a person they could do business with,
Speaker 1: almost like Angelo Merkel used to play with Germany, who
Speaker 1: kind of cut more of a middle path in terms
Speaker 1: of relations with China as opposed to the US. Russia's
Speaker 1: invasion of Ukraine, you know, coupled with China's the threats
Speaker 1: towards Taiwan have really kind of pushed Europe closer to
Speaker 1: the US on China policy. McCrone has been a key
Speaker 1: voice in saying, you know, there needs to be a
Speaker 1: middle way. They have to find some ways to bring
Speaker 1: these two big economies together to have a single global
Speaker 1: order rather than two different ones. So in that sense, yes,
Speaker 1: France is still an ally of the US, but they
Speaker 1: also are favoring engagement with China and just a softer
Speaker 1: tone in general than the US has brought with Beijing.
Speaker 1: How much of these importance do these meetings hold within China?
Speaker 1: We're talking about, of course this from an international stage
Speaker 1: point of view, from an international relations point of view,
Speaker 1: but what significance they have with in China, Well, it
Speaker 1: certainly helps Hiju and Ping's efforts to show that he's
Speaker 1: a global states. You know, mcron is just the latest
Speaker 1: visitor to come to Beijing. There's been a series of people,
Speaker 1: you know, particularly after the country was closed, no one
Speaker 1: was coming in there for three years. Now she is
Speaker 1: a regular, steady stream of visitors, McCrone probably being one
Speaker 1: of the most highest profile. You have Brazil's president coming
Speaker 1: in next week as well. So it just helps China
Speaker 1: show that they're engaged with the world, and it prevents
Speaker 1: the US efforts to kind of lump China and Russia
Speaker 1: together and isolate Beijing on the world stage. I also
Speaker 1: want to ask you though about the US House Speaker
Speaker 1: Kevin McCarthy, who is meeting Taiwan's president on US soil.
Speaker 1: You had some of the comments that he made just
Speaker 1: earlier stressing the importance of ties with the island. He's
Speaker 1: also been speaking to Bloomberg. What stood out for you
Speaker 1: for the kind of event, for what is being said
Speaker 1: and what is not being said. I think the key
Speaker 1: thing is where the event took place, which was in California,
Speaker 1: And this is something that sign when basically convinced Speaker
Speaker 1: McCarthy to hold that meeting on US soil rather than
Speaker 1: him going to Taiwan, which would have been relatively much
Speaker 1: more provocative. She's also not had a lot of public meetings.
Speaker 1: She's been relatively low key during the trip. So you know,
Speaker 1: they've met, they've had that meeting, they've it's been unprecedented,
Speaker 1: but they haven't really rubbed it in China's face in
Speaker 1: a way that they could have, and that matters a
Speaker 1: lot for Beijing's reaction to these things. So what we've
Speaker 1: seen from China so far has been very tepid. You've
Speaker 1: had the usual statements declaring Taiwan a red line, but
Speaker 1: not really the military response that we saw in the
Speaker 1: immediate aftermath of Nancy Pelosi arriving in Taiwan last year. Okay,
Speaker 1: thank you very much, our Asia Government Managing Editor Daniel
Speaker 1: tan Kate for bringing us up today with all of
Speaker 1: the various strands of those stories we are monitoring this
Speaker 1: morning on this issue. Up next, Britain's latest border wos
Speaker 1: and a Tory MP and his failed roll of the dice. Now,
Speaker 1: the paper review on Blue Birthday break Europe. The news
Speaker 1: you need to know from today's papers. Bloombergsley and Garons
Speaker 1: is with us for details on those stories. Lean Let's
Speaker 1: start with the Financial Times. The headline their UK government
Speaker 1: publishes plans for post Brexit checks. They might be late, Stephen,
Speaker 1: but they're here apparently. So. The introduction of new rules
Speaker 1: have been repeatedly delayed since Britain withdrew from the block
Speaker 1: back in January twenty twenty, so three and a half
Speaker 1: years ago. But now, according to the FT, this was
Speaker 1: due to concerns by ministers that controls could really create
Speaker 1: unacceptable delays at Channel ports and other entry points. So
Speaker 1: this has been a massive concern. But the government's proposals
Speaker 1: introduced and yesterday really put on the table say full
Speaker 1: customs checks on goods entering Britain from the EU by
Speaker 1: the end of October twenty twenty, so that is when
Speaker 1: they want to introduce these proposals twenty four what did
Speaker 1: I say, Sorry, Dotter, next year, let's put it that way. Sorry. Now.
Speaker 1: Interestingly enough, the plans include carrying out checks away from ports,
Speaker 1: and this is to avoid just mass disruption that could
Speaker 1: be caused, and the launch of a pilot trusted Trader
Speaker 1: scheme to simplify processes and also allow regular importers to
Speaker 1: avoid full customs inspections. So this is what has been
Speaker 1: put on the table for ministers really concerned about, you know,
Speaker 1: the backlog that could be created. And they also propose
Speaker 1: that goods are ranked according to their level of risk
Speaker 1: to human, animal or plant health. And the plans will
Speaker 1: be subjected to a six week consultation period before actually
Speaker 1: being finalized. But Caroline, more post brexit border checks really
Speaker 1: on the table. Yeah, I mean this is so complex
Speaker 1: and difficult. I mean the ones of the governors postponed it.
Speaker 1: And yeah, of course the difficulties are going to come.
Speaker 1: Sure border force are going to be have to have
Speaker 1: much more money in order to deal with all of this. Surely. Anyway,
Speaker 1: that aside, reflections aside, let's talk a bit about the Times.
Speaker 1: So an other Times exposer exposed says how Tory MP
Speaker 1: offered to lobby for gambling investors. Just let's get into
Speaker 1: this one. Yes, so a Conservative MP filmed apparently offering
Speaker 1: to lobby ministers on behalf of the gambling industry and
Speaker 1: this is awful money. Now he has had the party
Speaker 1: whip suspended. The MP is Scott Benton, who told undercover
Speaker 1: journalists from the Times posing as investors that he would
Speaker 1: ask parliamentary questions, although he eventually it's important to our line.
Speaker 1: This didn't accept any cash, so he felt like something
Speaker 1: was wrong and he didn't go any further. But he
Speaker 1: was secretly filmed telling reporters from the Times about how
Speaker 1: he can access ministers and get a leaked copy of
Speaker 1: the white Paper on gambling reforms to the company forty
Speaker 1: eight hours before it went public. Now we know this
Speaker 1: white paper could possibly be released after Easter and it's
Speaker 1: got these new reforms in from the gambling industry. The
Speaker 1: gambling industry is absolutely exploded in Britain, particularly during the pandemic.
Speaker 1: I think if anyone was in any doubt about how
Speaker 1: important the reform paper is going to be, you know,
Speaker 1: I think this and also Caroline another thing. Betting companies
Speaker 1: have launched an extensive lobbing campaign in Westminster, spending more
Speaker 1: than one hundred and eighty thousand pounds on corporate hospitality
Speaker 1: for dozens of MPs since twenty twenty one, and mid
Speaker 1: moves to you know, really tightened regular eight and when
Speaker 1: it comes to gaming, gambling and betting, because as you say,
Speaker 1: things have become explosive here in the UK. It's really
Speaker 1: exploded also online due to the pandemic. But as Benton
Speaker 1: does say, he contacted the Parliamentary Commissioner for Standards over
Speaker 1: concerns and he has been asked to break parliamentary walls
Speaker 1: and then went no further with the discussions. This is
Speaker 1: Bloomberg Daybreak Europe. You're morning brief on the stories making
Speaker 1: news from London to Wall Street and beyond. Look for
Speaker 1: us on your podcast feed every morning on Apple, Spotify
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Speaker 1: say Alexa play Bloomberg eleven thirty. I'm Caroline Hitka and
Speaker 1: I'm Stephen Carroll. Join us again tomorrow morning for all
Speaker 1: the news you need to start your day right here
Speaker 1: on Bloomberg Daybreak Europe.