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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg

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Speaker 1: Daybreak podcast, available every morning on Apple, Spotify or whatever

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Speaker 1: you listen. It's Wednesday, the tenth of July in London.

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Speaker 1: I'm Caroline Hepkin.

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Speaker 2: And I'm Stephen Carroll. Coming up today, Kirstarmer says Ukraine

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Speaker 2: can use UK missiles to strike inside Russia as he

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Speaker 2: arrives in Washington for his first NATO summit.

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Speaker 1: Democrats come out in support of Joe Biden as questions

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Speaker 1: over his candidacy persists.

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Speaker 2: Plus circumventing the nimbi's for a price, Our exclusive reporting

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Speaker 2: finds that UK homebuilders are splashing cash in a bid

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Speaker 2: to bypass the UK's planning system.

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

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Speaker 2: UK Prime Minister Kirstarmer says it's up to Ukraine how

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Speaker 2: it uses Britain's storm Shadow missiles in the Russia Ukraine War,

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Speaker 2: including whether the long range weapons are used to strike

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Speaker 2: military targets inside Russia quote for defensive purposes. It confirms

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Speaker 2: the Labor government will continue the previous UK government's policy

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Speaker 2: on the Russia Ukraine War. Starma was speaking to a

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Speaker 2: Bloomberg reporter and other journalists on the plane on his

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Speaker 2: way to the NATO summit in Washington. There is a

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Speaker 2: debate among NATO allies about whether Ukraine can strike military

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Speaker 2: targets inside Russia, something the Krowlin has previously called a

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Speaker 2: very dangerous statement. It's expected to be a central issue

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Speaker 2: discussed at the NATO summit.

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Speaker 3: Well.

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Speaker 1: During the summit, Kirs Starma is expected to say that

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Speaker 1: a step up in defense spending can safeguard the future

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Speaker 1: of the alliance. He says, the UK is committed to

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Speaker 1: reassessing its current defense budgets.

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Speaker 4: We will carry out our strategic review to look at

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Speaker 4: the challenges, the capabilities and on the back of that

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Speaker 4: make further plaids. I am committed to that two point

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Speaker 4: five percent within our physical rules. That strategic review needs

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Speaker 4: to come first.

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Speaker 1: Starma also promised to publish a road map showing how

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Speaker 1: the UK would get to that two and a half

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Speaker 1: percent target on defense spending. After facing calls for further

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Speaker 1: clarity from British military and foreign allies, the Prime Minister

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Speaker 1: went on to tell reporters that the country will quote

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Speaker 1: stand against Russian aggression. The UK is one of NATO's

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Speaker 1: biggest spenders and has been a key supplier of arms

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Speaker 1: to Ukraine since Russia's invasion.

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Speaker 2: NATO allies are offering Ukraine more defense systems and a

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Speaker 2: fresh pledge of support. The US, Germany, and Romania will

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Speaker 2: each send Ukraine a Patriot missile system, while a fourth

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Speaker 2: will be assembled using parts from the Netherlands and others.

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Speaker 2: Italy will send a ground based air defense system. Speaking

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Speaker 2: during the NATO summit and Washington, President Joe Biden promised

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Speaker 2: to prioritize Ukrainian aid nine.

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Speaker 3: States, We'll make sure when we export critical air defense interceptors,

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Speaker 3: Ukraine goes to the front of the line, so we'll

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Speaker 3: get this assistance before anyone else gets. You all tall

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Speaker 3: Ukraine will receive hundreds of additional interceptions over the next year.

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Speaker 3: Help me protect Ukrainian cities against.

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Speaker 2: Russian missiles, President Biden, speaking there at a NATO seventy

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Speaker 2: fifth anniversary celebratory event. Despite the commitment, the group's leaders

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Speaker 2: resisted offering the country a path to membership, despite growing

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Speaker 2: concerns over the prospect of peace with Russia. Some pledges

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Speaker 2: to send defense systems, including those from the US, Italy

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Speaker 2: and Romania, had already been announced. Prior to the NATO summits.

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Speaker 1: As Biden made that Nator announcement, Congressional Democrats argued over

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Speaker 1: whether to stand behind his re election bid. More House

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Speaker 1: Democrats and a Senator have now publicly called on the

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Speaker 1: president to step aside. Pete Aquila chairs the Democrat Caucus

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Speaker 1: and spoke after a closed door meeting.

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Speaker 5: Every single member of the House Democratic Caucus is clear

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Speaker 5: eyed about what the stakes of this election are. Donald

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Speaker 5: Trump cannot be allowed near the Oval office.

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Speaker 1: Pete Aquila said. They are focused now on beating Donald Trump.

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Speaker 1: The White House are trying to change the subject from

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Speaker 1: the President's mental sharpness to Donald Trump's policy goals. Many

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Speaker 1: Democrats pointed to the Heritage Foundation's Project twenty twenty five

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Speaker 1: as proposals Trump would pursue if elected in November. Trump

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Speaker 1: has tried to distance himself from the controversial set of.

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Speaker 2: Policies Former French Prime Minister Edward Philippe's calling for center

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Speaker 2: and center right parties to form a coalition government. It

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Speaker 2: comes as political negotiations take place following a snap election

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Speaker 2: in which no political grouping achieved an outright majority. The

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Speaker 2: left wing alliance New Popular Front now has the most

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Speaker 2: lawmakers in the National Assembly, followed by President Macron's Centrist

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Speaker 2: alliance and the far right National Rally. It's now up

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Speaker 2: to Macron to choose a prime minister, with no defined

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Speaker 2: deadline in place.

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Speaker 1: Now, Jerome Powell says that the US labor market has

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Speaker 1: cooled considerably and the FED needs more data to assess

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Speaker 1: whether inflation is slowing. The FED chair was careful not

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Speaker 1: to give Congress a timeline for inter rate cuts. In

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Speaker 1: his semi annual testimony, he warned that inflation is not

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Speaker 1: the only risk facing the US.

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Speaker 6: This is no longer an overheated economy. This is an economy,

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Speaker 6: as I mentioned in my opening remarks, that is more

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Speaker 6: or less back by most measures to where it was

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Speaker 6: before the pandemic, and that was a strong labor market,

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Speaker 6: but it was not an overheated labor market.

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Speaker 1: Powell will speak again to the House Financial Services Committee

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Speaker 1: later today. Democrats warned Powell of the potential risks to

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Speaker 1: the economy from delaying interest rate cuts, pointing to rising unemployment,

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Speaker 1: elevated housing costs, and a slow down in the manufacturing sector.

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Speaker 2: China's consumer prices hovered near zero for a fifth month

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Speaker 2: in June. Is deflation stocks that Chinese economy. The data

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Speaker 2: comes ahead of a key policy meeting of the ruling

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Speaker 2: Communist Party next week. Bloomberg's Brian Curtis has more from

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Speaker 2: Hong Kong.

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Speaker 7: Yet another sign that deflation is stocking the Chinese economy.

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Speaker 7: The CPI rose zero point two percent from a year earlier,

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Speaker 7: weaker than the estimate of zero point four percent. In

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Speaker 7: the meantime, factory gate prices declined zero point eight percent,

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Speaker 7: in line with estimates. The PPI has been in deflation

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Speaker 7: since late twenty twenty two. China's economy is uneven, some

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Speaker 7: strength in manufacturing, some weakness in consumption. Investors are hoping

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Speaker 7: for a fix from the Third Planum next week in

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Speaker 7: On Kong, Brian Curtis Bloomberg Radio.

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Speaker 2: In a moment, we'll have more on that NATO summit

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Speaker 2: and Ukraine, as well as Bloomberg's special report on the

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Speaker 2: UK's dysfunctional planning system. But first, another story that caught

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Speaker 2: our eye this morning. Do you think that in hundreds

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Speaker 2: of years people might be able to come back from

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Speaker 2: the dead? Cryogenic freezing Once considered a mad cap idea,

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Speaker 2: it's now just considered slightly eccentric. According to one of

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Speaker 2: the people who spoke to our colleagues for this Bloomberg

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Speaker 2: reporting about how people are not only preparing to freeze

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Speaker 2: themselves but also preparing to freeze their assets so they've

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Speaker 2: got some cash when they come back.

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Speaker 1: Absolutely, this is perhaps the most important question. I think

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Speaker 1: this is a really nice piece because people trying to

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Speaker 1: do this trying to adapt the trust, the rules around

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Speaker 1: trusts and inheritance usually for wealthy, multi generational dynasties, and

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Speaker 1: try to convert that to something that you could use

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Speaker 1: if you manage to come back to life in two

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Speaker 1: or three hundred years type. I mean, one of the

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Speaker 1: fundamental issues is are you actually dead if you are preserved,

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Speaker 1: and are you actually you if you then come back again,

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Speaker 1: you know, if you're revived, let's say, are you the

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Speaker 1: same person? It's actually quite tricky, and the piece goes

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Speaker 1: into all the detail with the few lawyers have been

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Speaker 1: looking into it.

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Speaker 2: Yeah, it's an emerging area of law revival trusts, like

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Speaker 2: trying to get around the usual lifespan on trust That

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Speaker 2: turns to me about ninety two hundred years Ppently of Florida,

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Speaker 2: you can have a one thousand year trust, So that's

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Speaker 2: something that lawyers have been looking at very keenly.

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Speaker 1: Now. NATO allies have promised five long range air defense

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Speaker 1: systems for Ukraine, but have resisted offering the country a

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Speaker 1: path to membership. This at the start of the meeting

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Speaker 1: in Washington and Prime Minister Kirstarma says that it's up

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Speaker 1: to Ukraine how it uses Britain's donated storm Shadow missiles,

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Speaker 1: the first time the new prime minister has clearly articulated

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Speaker 1: his stance joining US now. Is Bimberg's UK Politics reporter

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Speaker 1: James Warcock. This is some of our own reporting here

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Speaker 1: speaking to Keir Starmer. We've been really wondering what might

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Speaker 1: change about UK foreign policy under the new Labor prime minister.

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Speaker 1: This is confirmation there doesn't seem to be any change

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Speaker 1: on the Ukraine War if anything.

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Speaker 8: As well as noted, it's a commitment to continuing the

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Speaker 8: UK government's previous stance of being one of the staunchest

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Speaker 8: hawks in Europe when it comes to supporting Ukraine. You'll know, Kallex,

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Speaker 8: we cover it recently that these defends secretly. John Healey

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Speaker 8: made his trip on his second day in the jobs

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Speaker 8: Ukraine over the weekend and promised additional munitions, boats, artillery,

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Speaker 8: and some of these storm Shadow missile are effectively cruise

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Speaker 8: missiles which have a range of one hundred and fifty

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Speaker 8: five miles, So from Kiev you could just about get

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Speaker 8: over the Russian border. Obviously if you went further east

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Speaker 8: you could also reach further into Russia. Like you say,

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Speaker 8: this has been a very tense international issue because for Ukraine,

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Speaker 8: who I mean just as soon as this past week

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Speaker 8: have been hit by cruise missiles in their capital, killing

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Speaker 8: forty one civilians and also hitting a children's hospital. They

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Speaker 8: see hitting Russia as a key part of defending themselves

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Speaker 8: for the US. They see escalating tensions with Russia, especially

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Speaker 8: with Western made weaponry, as a key red line. Now,

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Speaker 8: like you say, Sunak stance for a very long time

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Speaker 8: when he was Prime Minister was if Ukraine used the

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Speaker 8: missiles to their own ends, and they've been donated to

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Speaker 8: end to use of their defense, that is not business

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Speaker 8: of the British states. Now that is a very kind

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Speaker 8: of opaque stance that sort of says, if it ends

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Speaker 8: up in Russia, we'd rather it didn't, but it's not

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Speaker 8: our issue now. Crucially, Emmanuel Macran in May of this

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Speaker 8: year said he would actively be okay with French missiles

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Speaker 8: because the storm shadows are Franco British project ending up

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Speaker 8: in Russia. So it is no change, but no change

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Speaker 8: in some ways is a stronger commitment as we end

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Speaker 8: up in sort of heading into the second year of

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Speaker 8: this war.

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Speaker 2: And this of course one of the things how NATO

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Speaker 2: allies in particular can support to Ukraine. One of the

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Speaker 2: issues up for a discussion that the summit taking place

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Speaker 2: in Washington. Koshtama were speaking on the way to that summer,

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Speaker 2: NATO has agreed to more donations of weapons to Ukraine.

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Speaker 2: What do we know about that?

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Speaker 8: Well, it all comes back to this issue of the

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Speaker 8: air war where he started Stephen in that Ukraine sees

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Speaker 8: air defense as a massive priority for itself as it

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Speaker 8: continues to get bombarded from Russia. And so these patriot systems,

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Speaker 8: which are these very high tech ways of policing the

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Speaker 8: air are all important. And the US has promised to

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Speaker 8: don eight four in context with Poland, Germany and Italy

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Speaker 8: and the Netherlands. Now Poland's ones were actually part of

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Speaker 8: a arms deal to supply Poland. They're going rather than

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Speaker 8: going to Poland, they're going straight to Ukraine. Now Ukraine

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Speaker 8: wanted seven, it's only getting five and one of them

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Speaker 8: isn't even a patriot system, it's Italy's ground based system.

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Speaker 8: And so how far this support can be guaranteed, how

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Speaker 8: quickly it will get there after we've covered, you know,

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Speaker 8: the US Congress months of delay over sort of spending

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Speaker 8: on aid is going to be key questions. But the

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Speaker 8: other key question, Stephen, is what is the long term

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Speaker 8: view here, especially looking ahead to the US election. Donald

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Speaker 8: Trump has said that the US is committing too much aid,

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Speaker 8: it looks awake ahead of this NATO summits and has

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Speaker 8: said that Europe needs to match US spending on this.

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Speaker 8: So what is going to be the future over four

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Speaker 8: months of these sort of donations as well as what

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Speaker 8: is happening right.

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Speaker 1: Now absolutely three day summit of course taking place in

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Speaker 1: Washington with the thirty two NATO country. So one story

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Speaker 1: that we will continue to follow for you, James Orcock,

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Speaker 1: our UK politics reporter, Thank you so much for that.

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Speaker 5: Now.

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Speaker 2: A Bloomberg News investigation derived from roughly one hundred and

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Speaker 2: fifty freedom of information requests has revealed even more dysfunction

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Speaker 2: Britain's planning system in a week where the labor has

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Speaker 2: announced plans to reform the system. Bloomberg's investigation reveals home

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Speaker 2: builders are resorting to paying thousands of pounds from more

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Speaker 2: attention from underfunded local authorities with no guarantee that will

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Speaker 2: actually improve the process. Our residential real estate reporter Damien

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Speaker 2: Sheppard joins US Now with more on this story. Damien,

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Speaker 2: good morning. What is this tool that home builders are using?

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Speaker 9: Yeah, so we're venturing into a niche area of the

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Speaker 9: planning system here known as planning performance agreements or PPAs. Now,

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Speaker 9: these agreements hold planning teams to stricter deadlines and more

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Speaker 9: frequent communication with home builder applicants. Essentially leapfrogs the wealthiest

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Speaker 9: builders who can afford them over other applicants and put

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Speaker 9: them at the front of the local authorities desk when

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Speaker 9: it comes to their development ideas. But as we know

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Speaker 9: with the planning system, it doesn't always go as smoothly

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Speaker 9: as that.

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Speaker 1: So is it working then not?

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Speaker 8: Really?

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Speaker 9: Most builders see this as attacks that essential in the

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Speaker 9: process to get their housebuilding applications looked at. Lots of

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Speaker 9: builders I've spoken to have reported equally as slow decision making.

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Speaker 9: These aren't legally binding contracts, so there's no penalty for

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Speaker 9: the councilors in missing the deadlines, even when the builders

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Speaker 9: pay more to get those stricter deadlines agreed to. This

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Speaker 9: is a desperate measure that we've uncovered here that the

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Speaker 9: builders who can afford to are using just to sort

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Speaker 9: of slightly boost their chances of getting planning permission through faster.

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Speaker 2: Why if they had to resort to this damien.

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Speaker 9: So it all comes back to one thing, a lack

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Speaker 9: of resource in local authority planning departments. This is from

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Speaker 9: years of underfunding and a severe lack of staff in

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Speaker 9: local authorities. Delays have become absolute given in planning, and

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Speaker 9: as I say, this is a desperate measure to try

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Speaker 9: and just lower those delays slightly and get more housing

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Speaker 9: units out there that the UK desperately needs, and these

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Speaker 9: home builders desperately need to boo their numbers. Now, the

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Speaker 9: richest builders would pay even more to improve this punctuality.

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Speaker 9: So this is a desperate measure that isn't even quite

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Speaker 9: working and really shows the dysfunction that's happening in this

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Speaker 9: planning system.

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Speaker 1: So I suppose one could wonder whether there's going to

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Speaker 1: be more use of these PPAs and also whether there's

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Speaker 1: a knock on effect to the smaller builders maybe, you know,

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Speaker 1: you keep talking about the richest builders, all about the

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Speaker 1: ones that might not have the cash to pay this,

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Speaker 1: as you call it, additional little tax.

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Speaker 9: Exactly. Well, their use is rising every year. It's risen

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Speaker 9: every year for almost a decade now, the use of PPAs,

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Speaker 9: and it's accelerated even more in recent years, which is

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Speaker 9: very interesting because we've had a slump in development that

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Speaker 9: the use of PPAs it is increasing, which sort of

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Speaker 9: indicates that a bigger share of builders are using them now.

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Speaker 9: It's a really good point you make on SMEs because

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Speaker 9: they can't afford to use these and as I said earlier,

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Speaker 9: it leap frogs you over other applicants to the front

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Speaker 9: of the local authorities desk. And I've spoken to SME builders,

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Speaker 9: one that was trying to build twelve units in London

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Speaker 9: and can't get any attention from the local authority because

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Speaker 9: it can't afford this PPA tax as It's known that

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Speaker 9: other builders can, So it's pushing SMEs further down the pile,

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Speaker 9: putting large builders applications to the front of the local

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Speaker 9: authorities desk. And still to no avail.

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Speaker 2: Will Labour's pledges to improve the planning system actually reduce

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Speaker 2: the use of these PPAs.

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Speaker 9: I'd say probably the most important pledge that relates to

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Speaker 9: this is Labour's promise to hire three hundred planners in

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Speaker 9: the next parliament, but that would only cover less than

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Speaker 9: ten percent of the planners who left during the first

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Speaker 9: ten years of the Tory rule. There's a massive deficit

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Speaker 9: here of funding and staff in local authority planning departments,

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Speaker 9: and the pledge doesn't seem to scratch the surface when

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Speaker 9: you look back at the numbers, but any time will

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Speaker 9: take the pledges will translate into action.

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