1
00:00:02,520 --> 00:00:02,920
Speaker 1: Good morning.

2
00:00:02,960 --> 00:00:05,400
Speaker 2: It's Monday, the twenty seventh of November here in London.

3
00:00:05,440 --> 00:00:07,640
Speaker 2: This is the Bloomberg Daybreak Here at podcast.

4
00:00:07,720 --> 00:00:10,800
Speaker 3: I'm Caroline Hepke and I'm Stephen Carroll. Coming up today,

5
00:00:10,960 --> 00:00:14,400
Speaker 3: the Prime Minister tells Bloomberg he'll prioritize tax cuts over

6
00:00:14,480 --> 00:00:16,280
Speaker 3: more money for public services.

7
00:00:16,680 --> 00:00:19,639
Speaker 2: Israel and Hamas look to keep the temporary truth in

8
00:00:19,760 --> 00:00:21,919
Speaker 2: place as more hostages off freed.

9
00:00:22,000 --> 00:00:25,479
Speaker 3: And grappling with a growing backlash. Elon Musk will meet

10
00:00:25,560 --> 00:00:29,680
Speaker 3: Israel's president as the controversy over antisemitism continues.

11
00:00:29,960 --> 00:00:32,360
Speaker 2: Let's start with a roundup of our chop stories.

12
00:00:33,120 --> 00:00:35,920
Speaker 3: Ritchie Soonac says public services will need to become more

13
00:00:35,960 --> 00:00:39,159
Speaker 3: efficient with the money they have to fund his desire

14
00:00:39,200 --> 00:00:42,360
Speaker 3: for more tax cuts. In an exclusive interview with Bloomberg,

15
00:00:42,400 --> 00:00:45,440
Speaker 3: the Prime Minister denied that the tax cutting strategy will

16
00:00:45,520 --> 00:00:49,279
Speaker 3: lead to a significant squeeze on government spending. Here's what

17
00:00:49,280 --> 00:00:50,760
Speaker 3: he told our colleague Francine Laque.

18
00:00:51,120 --> 00:00:53,639
Speaker 4: Government spending in the UK right now is a very

19
00:00:53,720 --> 00:00:57,279
Speaker 4: high levels. Historically over this parliament, It's grown at very

20
00:00:57,360 --> 00:01:00,560
Speaker 4: high levels even in real times after the impact of inflation.

21
00:01:00,640 --> 00:01:04,440
Speaker 4: So I think any commentary or accusations that's what's happening

22
00:01:04,560 --> 00:01:07,480
Speaker 4: is just simply unfounded. Government's already spending a lot of

23
00:01:07,480 --> 00:01:09,880
Speaker 4: people's money, and what we need to see going forward

24
00:01:09,959 --> 00:01:12,480
Speaker 4: is more productivity out of the public sector. Needs to

25
00:01:12,520 --> 00:01:14,840
Speaker 4: match what we've seen in the private sector post COVID,

26
00:01:15,000 --> 00:01:17,800
Speaker 4: and I'd rather focus on efficiency in the public sector

27
00:01:17,959 --> 00:01:21,280
Speaker 4: and prioritize cutting people's taxes rather than the government spending

28
00:01:21,360 --> 00:01:22,440
Speaker 4: ever more of their money.

29
00:01:23,480 --> 00:01:26,640
Speaker 3: The comment's com as Tunax. Government battles criticism that last

30
00:01:26,640 --> 00:01:29,960
Speaker 3: week's twenty one billion pounds of business and personal tax

31
00:01:30,000 --> 00:01:33,920
Speaker 3: cuts will lead to austerity. That's after the UK's fiscal watchdog,

32
00:01:33,959 --> 00:01:37,240
Speaker 3: the Office for Budget Responsibility, said the giveaways would need

33
00:01:37,280 --> 00:01:40,560
Speaker 3: to be funded by a nineteen billion pound reduction in

34
00:01:40,640 --> 00:01:42,160
Speaker 3: real terms government spending.

35
00:01:43,360 --> 00:01:47,120
Speaker 2: Now, Israel and Hamas have signaled that a temporary cease

36
00:01:47,160 --> 00:01:51,040
Speaker 2: fire could be extended beyond Monday. Under the current agreement,

37
00:01:51,080 --> 00:01:54,920
Speaker 2: Hamas is releasing fifty hostages in exchange for one hundred

38
00:01:54,920 --> 00:01:59,800
Speaker 2: and fifty Israeli held prisoners. The pause in fighting between

39
00:01:59,840 --> 00:02:02,920
Speaker 2: the too is due to end tomorrow morning unless further

40
00:02:02,960 --> 00:02:06,880
Speaker 2: captives are released, but even if it is extended, Israeli

41
00:02:06,880 --> 00:02:10,360
Speaker 2: Prime Minister Benjamin Nettnia, who says the truce won't be

42
00:02:10,480 --> 00:02:11,400
Speaker 2: made permanent.

43
00:02:12,280 --> 00:02:15,120
Speaker 1: I want to say there is also an outline that

44
00:02:15,240 --> 00:02:19,080
Speaker 1: says you can release ten more every additional day. It

45
00:02:19,160 --> 00:02:21,840
Speaker 1: is a blessed thing. But in the same breath, I

46
00:02:21,880 --> 00:02:24,320
Speaker 1: also told the President that at the end of the outline,

47
00:02:24,520 --> 00:02:27,079
Speaker 1: we will return with all our strength to realize our

48
00:02:27,120 --> 00:02:28,639
Speaker 1: goal the elimination of.

49
00:02:28,600 --> 00:02:33,520
Speaker 2: Hamas Benjamin Nettnill, who they're speaking through a translator. After

50
00:02:33,600 --> 00:02:36,640
Speaker 2: holding talks at the weekend with US President Joe Biden,

51
00:02:37,000 --> 00:02:40,400
Speaker 2: two hundred AID trucks entered Gaza on Sunday, with the

52
00:02:40,480 --> 00:02:45,200
Speaker 2: humanitarian pause largely holding since going into effect.

53
00:02:45,320 --> 00:02:48,600
Speaker 3: Elon Musk will today meet with the Israeli President and

54
00:02:48,760 --> 00:02:53,280
Speaker 3: representatives of families of hostages held in Gaza. The closed

55
00:02:53,280 --> 00:02:55,560
Speaker 3: door meeting appears to be an effort to diffuse a

56
00:02:55,600 --> 00:02:59,640
Speaker 3: growing backlash over the billionaire's endorsement to an anti Semitic tweet.

57
00:03:00,080 --> 00:03:03,360
Speaker 3: While Musk has drawn support from notable figures including Hedge

58
00:03:03,400 --> 00:03:07,440
Speaker 3: fund manager Bill Ackman, others, including Rishi Sunak, say the

59
00:03:07,560 --> 00:03:11,080
Speaker 3: Tesla and SpaceX chief shouldn't be given a pass because

60
00:03:11,120 --> 00:03:11,840
Speaker 3: of who he is.

61
00:03:12,360 --> 00:03:14,560
Speaker 4: I don't tend to get in the business of scrutinizing

62
00:03:14,600 --> 00:03:17,120
Speaker 4: what every single person says who I've interacted with. Of

63
00:03:17,160 --> 00:03:19,760
Speaker 4: course I bore anti Semitism. It doesn't matter whether you're

64
00:03:20,040 --> 00:03:22,520
Speaker 4: Elon Musk or you're someone on the street who's shouting

65
00:03:22,520 --> 00:03:24,840
Speaker 4: abuse at someone who happens to be walking past you.

66
00:03:24,880 --> 00:03:27,079
Speaker 4: That's wrong in all its forms. Anti Semitism in all

67
00:03:27,120 --> 00:03:29,360
Speaker 4: its forms, is completely and utterly wrong.

68
00:03:30,880 --> 00:03:34,800
Speaker 3: Sunak's careful criticism comes just weeks after the British Prime

69
00:03:34,840 --> 00:03:38,720
Speaker 3: Minister had a fireside conversation with Musk at the UK's

70
00:03:38,840 --> 00:03:42,040
Speaker 3: Ai summit. The comments that stop short of the full

71
00:03:42,080 --> 00:03:45,800
Speaker 3: throated condemnation by US President Joe Biden, who said the

72
00:03:45,800 --> 00:03:49,160
Speaker 3: billionaire's tweet was a quote a barrant promotion of anti

73
00:03:49,160 --> 00:03:50,920
Speaker 3: Semitic and racist hate.

74
00:03:51,960 --> 00:03:55,400
Speaker 2: Report suggests that President Joe Biden will miss this year's

75
00:03:55,440 --> 00:03:58,560
Speaker 2: COP twenty eight summit to vote to devote time to

76
00:03:58,600 --> 00:04:01,720
Speaker 2: the Israeli Hamas com. According to The New York Times,

77
00:04:01,920 --> 00:04:04,000
Speaker 2: he will skip the talks for the first time in

78
00:04:04,040 --> 00:04:07,120
Speaker 2: two years. Leaders and officials for more than two hundred

79
00:04:07,160 --> 00:04:10,400
Speaker 2: countries are expected to attend the UN Climate Summit in

80
00:04:10,480 --> 00:04:13,760
Speaker 2: Dubai that begins on Thursday, which is being led by

81
00:04:13,880 --> 00:04:16,880
Speaker 2: Sultan al Jabbar, who is the CEO of the Abu

82
00:04:16,920 --> 00:04:20,760
Speaker 2: Dhabi National All Company or ADNOCK. The news comes after

83
00:04:20,839 --> 00:04:24,480
Speaker 2: Joe Biden called climate change the quote ultimate threat to

84
00:04:24,560 --> 00:04:26,279
Speaker 2: humanity earlier this month.

85
00:04:27,080 --> 00:04:30,560
Speaker 3: UK lawmakers call for regular reviews of the Bank of

86
00:04:30,600 --> 00:04:34,720
Speaker 3: England after recent mistakes. Bloomberg's Teama Atabayo has the details.

87
00:04:34,960 --> 00:04:39,240
Speaker 5: The House of Lords Economic Affairs Committee wants UK lawmakers

88
00:04:39,279 --> 00:04:43,000
Speaker 5: to assess the central Bank every five years after a

89
00:04:43,040 --> 00:04:47,200
Speaker 5: string of quote errors that let inflation surge. Members of

90
00:04:47,240 --> 00:04:51,760
Speaker 5: the committee, including former Governor Mervyn king A, pushing for

91
00:04:51,800 --> 00:04:54,640
Speaker 5: the Bank of England's remit to be trimmed in a

92
00:04:54,680 --> 00:04:59,080
Speaker 5: report marking twenty five years of its independence. Despite being

93
00:04:59,160 --> 00:05:03,720
Speaker 5: critical of its decision making, the law's committee recognizes that

94
00:05:03,760 --> 00:05:07,000
Speaker 5: the BOE is not the only central bank that failed

95
00:05:07,040 --> 00:05:11,040
Speaker 5: to anticipate to high inflation, which revealed a quote lack

96
00:05:11,080 --> 00:05:14,520
Speaker 5: of diversity of view in the wider central bank community.

97
00:05:14,960 --> 00:05:17,880
Speaker 5: The calls come at a time when public confidence in

98
00:05:17,920 --> 00:05:21,400
Speaker 5: the institution is at a record low. According to its

99
00:05:21,400 --> 00:05:25,360
Speaker 5: own survey, forty percent of the British public say central

100
00:05:25,440 --> 00:05:29,520
Speaker 5: bank policy makers are doing a bad job of handling inflation.

101
00:05:30,000 --> 00:05:34,160
Speaker 5: In London, TIWA Adubio, Bloomberg Radio No.

102
00:05:34,279 --> 00:05:36,120
Speaker 3: In a moment, we'll get the latest on Gaza and

103
00:05:36,120 --> 00:05:40,000
Speaker 3: the possibility of extending that temporary cease fire with our

104
00:05:40,040 --> 00:05:42,520
Speaker 3: Middley s breaking news eder Dana Krate. But another story

105
00:05:42,520 --> 00:05:45,440
Speaker 3: that cot Ari this morning is ahead of Cup twenty

106
00:05:45,480 --> 00:05:47,400
Speaker 3: eight this week. Of course we're talking about Joe Biden

107
00:05:47,760 --> 00:05:52,240
Speaker 3: not going there to the summers according to those reports.

108
00:05:52,360 --> 00:05:55,520
Speaker 3: But the UN's Food Agency is put out a report

109
00:05:56,040 --> 00:05:58,080
Speaker 3: which will call in the world's richest countries or people

110
00:05:58,160 --> 00:06:01,440
Speaker 3: rather therein to curb their access of appetite for meat.

111
00:06:01,520 --> 00:06:04,200
Speaker 3: This is part of a plan to bring the global

112
00:06:04,279 --> 00:06:07,719
Speaker 3: agri food industry in line with the Paris Climate Agreement.

113
00:06:07,960 --> 00:06:10,640
Speaker 3: Food systems account for about a third of global greenhouse

114
00:06:10,640 --> 00:06:13,960
Speaker 3: gas emissions, a lot of that footprint linked to livestock farming,

115
00:06:14,160 --> 00:06:15,479
Speaker 3: and this is going to be an effort, not a

116
00:06:15,480 --> 00:06:17,880
Speaker 3: binding commitment that they're looking for from these countries, but

117
00:06:17,920 --> 00:06:21,280
Speaker 3: nonetheless a plan that governments can sign up to for

118
00:06:21,360 --> 00:06:25,400
Speaker 3: that then to influence policy and particularly investment decisions in

119
00:06:25,440 --> 00:06:27,960
Speaker 3: the agrifood industry and what government attitude.

120
00:06:27,600 --> 00:06:28,240
Speaker 6: Is to us. Yeah.

121
00:06:28,279 --> 00:06:31,480
Speaker 2: Look, I think a lot of governments in rich countries

122
00:06:31,520 --> 00:06:33,400
Speaker 2: have been loaths to sort of tell people to eat

123
00:06:33,520 --> 00:06:35,840
Speaker 2: less meat, and indeed that there has been a controversy

124
00:06:35,880 --> 00:06:38,440
Speaker 2: over that politically here in the UK. On the other hand,

125
00:06:38,760 --> 00:06:42,280
Speaker 2: in Britain, certainly we've seen less meat eating, partly the

126
00:06:42,320 --> 00:06:44,760
Speaker 2: cost of living crisis, but also perhaps that sort of

127
00:06:44,760 --> 00:06:49,120
Speaker 2: health message about you know, eating less process meatless red meat.

128
00:06:49,200 --> 00:06:51,400
Speaker 2: But certainly the consumption in the UK has gone dow

129
00:06:51,480 --> 00:06:54,480
Speaker 2: though still you know, as the ued is pointed to

130
00:06:54,480 --> 00:06:54,760
Speaker 2: too hot.

131
00:06:54,880 --> 00:06:57,000
Speaker 3: Yeah, look in any of the big agricultural countries, this

132
00:06:57,120 --> 00:07:00,440
Speaker 3: is going to be a very controversial statement, something that

133
00:07:00,480 --> 00:07:03,440
Speaker 3: I think that the UN Food Agency is preparing for

134
00:07:03,520 --> 00:07:05,920
Speaker 3: and putting out this plan as well. But nonetheless that

135
00:07:07,240 --> 00:07:08,720
Speaker 3: has to come in the context, of course of the

136
00:07:08,800 --> 00:07:11,240
Speaker 3: challenges being faced of trying to address climate change as well,

137
00:07:11,240 --> 00:07:14,240
Speaker 3: and how the agrifield industry needs to take part in that.

138
00:07:14,760 --> 00:07:15,280
Speaker 7: Absolutely.

139
00:07:15,280 --> 00:07:16,960
Speaker 2: Anyway, it's a piece on the Bloomberg Tunel if you

140
00:07:16,960 --> 00:07:19,400
Speaker 2: want to read more. Of course, head of the cop

141
00:07:19,440 --> 00:07:22,280
Speaker 2: Metia on Thursday. Let's turn our attention though to the

142
00:07:22,280 --> 00:07:25,400
Speaker 2: Big interview this morning. Prime Minister Ishi Sunak has brushed

143
00:07:25,400 --> 00:07:29,200
Speaker 2: aside criticism that his government is pushing Britain into another

144
00:07:29,280 --> 00:07:32,920
Speaker 2: phase of austerity. The Prime Minister has been speaking to

145
00:07:32,920 --> 00:07:37,200
Speaker 2: Bloomberg exclusively ahead of the UK's Global Investments summit, which

146
00:07:37,240 --> 00:07:40,880
Speaker 2: will include the bosses of Blackstone, Golden Sachs and others.

147
00:07:41,200 --> 00:07:44,720
Speaker 2: Here he is speaking to Bloomberg's Francis Laqua in Downing Street.

148
00:07:45,200 --> 00:07:47,360
Speaker 4: The story of the UK is an economy that has

149
00:07:47,360 --> 00:07:49,400
Speaker 4: got real momentum. So I've been Prime Minister for just

150
00:07:49,480 --> 00:07:52,320
Speaker 4: over a year. During that time, we've halved inflation as

151
00:07:52,360 --> 00:07:55,000
Speaker 4: I said we would do. We've known now that the

152
00:07:55,120 --> 00:07:57,920
Speaker 4: UK economy has recovered faster from the pandemic than pretty

153
00:07:58,000 --> 00:08:00,680
Speaker 4: much any other major European economy, and over the long

154
00:08:00,760 --> 00:08:05,720
Speaker 4: term we're still forecast to outperform measure European economies. But crucially,

155
00:08:05,800 --> 00:08:09,360
Speaker 4: business investment has grown faster than any other G seven

156
00:08:09,400 --> 00:08:11,880
Speaker 4: economy over the last few years. And I think ultimately,

157
00:08:11,920 --> 00:08:14,160
Speaker 4: if you want to drive growth and productivity in an economy,

158
00:08:14,200 --> 00:08:17,480
Speaker 4: you need businesses to be investing. We have more momentum

159
00:08:17,520 --> 00:08:19,720
Speaker 4: for business investment here than anywhere else. So look, I

160
00:08:19,760 --> 00:08:22,240
Speaker 4: feel actually very positive about the long term growth outlook

161
00:08:22,280 --> 00:08:22,720
Speaker 4: for the UK.

162
00:08:23,000 --> 00:08:25,560
Speaker 8: So do you think the OBR is actually going to

163
00:08:25,560 --> 00:08:27,520
Speaker 8: have to revise them upwards. Are you confident that the

164
00:08:27,600 --> 00:08:29,920
Speaker 8: numbers will come in so that you can continue cutting tax.

165
00:08:30,040 --> 00:08:31,520
Speaker 4: What I can tell you is that when I became

166
00:08:31,520 --> 00:08:34,240
Speaker 4: Prime Minister just over a year ago, not just the OBR,

167
00:08:34,320 --> 00:08:36,680
Speaker 4: but also the Bank of England, the OECD and the IMF,

168
00:08:36,720 --> 00:08:38,840
Speaker 4: all of them predicted that the UK would be in

169
00:08:38,880 --> 00:08:42,560
Speaker 4: recession this year. That hasn't happened. We put in place

170
00:08:42,559 --> 00:08:44,960
Speaker 4: a set of policies to ensure that it didn't and

171
00:08:45,000 --> 00:08:47,280
Speaker 4: I'm delighted the UK economy has outperformed all of those

172
00:08:47,280 --> 00:08:49,880
Speaker 4: and has grown this year better than anybody thoughts. So look,

173
00:08:49,920 --> 00:08:52,679
Speaker 4: I've got a track record in outperforming what people think

174
00:08:52,720 --> 00:08:55,000
Speaker 4: and the as I said, the UK economy has real

175
00:08:55,040 --> 00:08:58,520
Speaker 4: momentum now inflation has been halved, business investment is growing

176
00:08:58,559 --> 00:09:02,559
Speaker 4: faster than elsewhere, and as said, we've got commitments totally

177
00:09:02,600 --> 00:09:05,640
Speaker 4: almost thirty billion pounds for our summit. It's significantly more

178
00:09:05,679 --> 00:09:06,839
Speaker 4: than we've had in the past. So I think that

179
00:09:06,920 --> 00:09:11,040
Speaker 4: shows that investors and companies are voting with their pounds

180
00:09:11,080 --> 00:09:12,920
Speaker 4: and their dollars, and that shows that there is confidence

181
00:09:12,920 --> 00:09:15,160
Speaker 4: in the economy and that's what makes me think we're

182
00:09:15,200 --> 00:09:16,160
Speaker 4: poised for strong growth.

183
00:09:16,240 --> 00:09:18,480
Speaker 8: But Premimus if you look at inflation, if you actually

184
00:09:18,520 --> 00:09:23,160
Speaker 8: exclude energy, it's about you been down by like a fifth,

185
00:09:23,360 --> 00:09:25,720
Speaker 8: So I don't know how much credit the government can

186
00:09:25,720 --> 00:09:26,920
Speaker 8: actually take on that well.

187
00:09:26,920 --> 00:09:30,000
Speaker 4: Actually, if you look at core inflation, it's pretty much

188
00:09:30,280 --> 00:09:34,400
Speaker 4: middle of a pack for European economies. Forecast next year

189
00:09:34,400 --> 00:09:36,400
Speaker 4: to be lower than the Eurozone, and I think in

190
00:09:36,440 --> 00:09:38,360
Speaker 4: the US the last numbers I checked, So actually the

191
00:09:38,360 --> 00:09:41,839
Speaker 4: momentum inflation is downwards and coming down faster than peers

192
00:09:41,880 --> 00:09:43,760
Speaker 4: over the course of the next twelve months. If you

193
00:09:43,800 --> 00:09:46,520
Speaker 4: look at the forecast, and we're making sure that we

194
00:09:46,920 --> 00:09:50,199
Speaker 4: are disciplined with borrowing, ultimately, what investors are looking at

195
00:09:50,240 --> 00:09:52,960
Speaker 4: to make sure that fiscal policy is sensible. We're not

196
00:09:53,000 --> 00:09:56,400
Speaker 4: fueling the inflationary fire. We're being sensible on public sector

197
00:09:56,679 --> 00:09:59,520
Speaker 4: wage settlements, and actually you're seeing that feed through to

198
00:09:59,520 --> 00:10:02,240
Speaker 4: the economy and has said we're also improving labor supply.

199
00:10:02,280 --> 00:10:04,280
Speaker 4: If I talked to businesses, you know what they're keen

200
00:10:04,280 --> 00:10:06,320
Speaker 4: to see is access to labor. We're making sure that

201
00:10:06,320 --> 00:10:10,160
Speaker 4: our labor market remains flexible, that we're moving people off

202
00:10:10,200 --> 00:10:13,319
Speaker 4: welfare and into work. All of those things are contributing

203
00:10:13,360 --> 00:10:15,760
Speaker 4: to I think downward momentum on inflation premier.

204
00:10:15,800 --> 00:10:18,160
Speaker 8: Sure, if the OBR is actually right in their forecast,

205
00:10:18,160 --> 00:10:20,240
Speaker 8: what does it mean where you can actually find some

206
00:10:20,440 --> 00:10:22,200
Speaker 8: spending freeze or actually cuts.

207
00:10:22,679 --> 00:10:26,199
Speaker 4: Well, what we've just delivered are significant tax cuts, significant

208
00:10:26,200 --> 00:10:29,600
Speaker 4: tax cuts for business, significant tax cuts for everybody in work.

209
00:10:29,640 --> 00:10:32,360
Speaker 4: That's what our autumn statement last week did, I think,

210
00:10:32,400 --> 00:10:35,440
Speaker 4: the biggest tax cuts in one event since the nineteen eighties.

211
00:10:35,480 --> 00:10:37,679
Speaker 4: Just to give people a sense of scale. For business,

212
00:10:37,679 --> 00:10:41,240
Speaker 4: what we're doing is making full expensing permanent, so we

213
00:10:41,280 --> 00:10:43,920
Speaker 4: will be the only major at G seven economy certainly

214
00:10:43,960 --> 00:10:46,480
Speaker 4: and even broader than that, where you get a total

215
00:10:46,600 --> 00:10:49,079
Speaker 4: rite off against your taxes for capital investment. That's an

216
00:10:49,080 --> 00:10:53,040
Speaker 4: incredibly generous regime to attract business investment. And it comes

217
00:10:53,040 --> 00:10:55,160
Speaker 4: on top of the fat that our corporation tax right

218
00:10:55,160 --> 00:10:57,640
Speaker 4: here is lower than any other G seven economy. And

219
00:10:57,679 --> 00:11:00,000
Speaker 4: when it comes to individuals in work, we've just delivered

220
00:11:00,200 --> 00:11:03,400
Speaker 4: a very significant personal tax cut that will put four

221
00:11:03,480 --> 00:11:07,200
Speaker 4: hundred and fifty pounds extra in the bank accounts of

222
00:11:07,240 --> 00:11:09,440
Speaker 4: a typical person in work over the next twelve months,

223
00:11:09,480 --> 00:11:11,960
Speaker 4: which will also need to be good for consumption as.

224
00:11:11,880 --> 00:11:14,400
Speaker 8: Well, that you have to find money in for example,

225
00:11:14,440 --> 00:11:17,000
Speaker 8: departments where you know that voters actually want you to

226
00:11:17,000 --> 00:11:19,960
Speaker 8: spend more in certain departments. So are you comfortable as

227
00:11:20,559 --> 00:11:22,480
Speaker 8: possibly being Prime Minister of austerity.

228
00:11:22,600 --> 00:11:25,200
Speaker 4: No, that's simply not the case. Actually, government spending in

229
00:11:25,240 --> 00:11:28,199
Speaker 4: the UK right now is a very high levels historically

230
00:11:28,200 --> 00:11:31,480
Speaker 4: over this parliament. It's grown at very high levels even

231
00:11:31,520 --> 00:11:34,120
Speaker 4: in real terms after the impact of inflation. So I

232
00:11:34,120 --> 00:11:38,000
Speaker 4: think any commentary or accusation that's what's happening is just

233
00:11:38,000 --> 00:11:41,679
Speaker 4: simply unfounded. And we're at a point now, given how

234
00:11:41,720 --> 00:11:44,720
Speaker 4: people are feeling, given the amount that's being spent, where

235
00:11:44,800 --> 00:11:46,480
Speaker 4: I think the priority has got to be luring the

236
00:11:46,480 --> 00:11:49,760
Speaker 4: tax burden. Government's already spending a lot of people's money,

237
00:11:50,000 --> 00:11:51,679
Speaker 4: and what we need to see going forward is more

238
00:11:51,679 --> 00:11:54,320
Speaker 4: productivity out of the public sector needs to match what

239
00:11:54,360 --> 00:11:56,800
Speaker 4: we've seen in the private sector post COVID, and I'd

240
00:11:56,880 --> 00:11:59,800
Speaker 4: rather focus on efficiency in the public sector and prior

241
00:11:59,800 --> 00:12:03,000
Speaker 4: time cutting people's taxes rather than the government's funding ever

242
00:12:03,080 --> 00:12:05,200
Speaker 4: more of their money. That's the point I think, and

243
00:12:05,240 --> 00:12:06,880
Speaker 4: I'm very clear that that is the choice that we

244
00:12:06,920 --> 00:12:07,360
Speaker 4: are making.

245
00:12:07,600 --> 00:12:09,960
Speaker 8: But even if the voter doesn't necessarily feel that tax

246
00:12:10,000 --> 00:12:12,600
Speaker 8: cuts because of inflation going up, so how much more.

247
00:12:12,920 --> 00:12:15,880
Speaker 8: Can you cut taxes in April and beyond.

248
00:12:15,840 --> 00:12:17,960
Speaker 4: Well, it wouldn't be right to speculate on future events.

249
00:12:17,960 --> 00:12:20,160
Speaker 4: We're just still digesting the one we've had, which, as

250
00:12:20,160 --> 00:12:22,800
Speaker 4: I said, delivered the biggest tax cuts since any event

251
00:12:23,080 --> 00:12:25,200
Speaker 4: since the nineteen eighties. But what I have said is

252
00:12:25,200 --> 00:12:27,720
Speaker 4: that this is the start of a journey. And you

253
00:12:27,720 --> 00:12:29,360
Speaker 4: know I meant that when I said, look, after we

254
00:12:29,440 --> 00:12:32,920
Speaker 4: got inflation down, I wanted to focus on making sure

255
00:12:32,920 --> 00:12:35,160
Speaker 4: that we reward people's hard work, making sure that we

256
00:12:35,200 --> 00:12:38,400
Speaker 4: grow the economy and responsibly cutting taxes. And you know,

257
00:12:38,600 --> 00:12:40,280
Speaker 4: when we can do more, we will, because that's the

258
00:12:40,320 --> 00:12:41,480
Speaker 4: direction of travel here now.

259
00:12:42,280 --> 00:12:45,000
Speaker 2: So that was the Prime Minister there, speaking to Blomberg's

260
00:12:45,000 --> 00:12:48,560
Speaker 2: fancy in Laqua. Also in that interview issue, Sunak offered

261
00:12:48,600 --> 00:12:52,880
Speaker 2: some careful, measured criticism of Elon Mask for promoting antisemitism

262
00:12:52,960 --> 00:12:56,680
Speaker 2: on X, saying anti Semitism in all its forms is

263
00:12:56,760 --> 00:12:58,480
Speaker 2: completely and utterly wrong.

264
00:12:59,840 --> 00:13:02,120
Speaker 3: The at least next and there's a possibility that Israel

265
00:13:02,160 --> 00:13:05,720
Speaker 3: and Hamas could extend the temporary cease firing Gaza to

266
00:13:05,760 --> 00:13:09,040
Speaker 3: allow for the release of more hostages and prisoners. Over

267
00:13:09,080 --> 00:13:12,800
Speaker 3: the past three days, Hamas has handed over fifty eight hostages,

268
00:13:12,920 --> 00:13:16,040
Speaker 3: while Israel has freed one hundred and seventeen Palestinian women

269
00:13:16,080 --> 00:13:18,560
Speaker 3: and miners held in its presence. Joining us now for

270
00:13:18,600 --> 00:13:21,360
Speaker 3: more is Bloomberg's Midleast Breaking news editor Dana Create and

271
00:13:21,400 --> 00:13:23,719
Speaker 3: a good morning to you. Good to have you with us.

272
00:13:23,760 --> 00:13:27,000
Speaker 3: Today is the last planned day of the ceasefire. How

273
00:13:27,120 --> 00:13:28,760
Speaker 3: likely is it that it will be extended?

274
00:13:30,600 --> 00:13:34,079
Speaker 6: There are talks of an extension, Cutter said yesterday. Cutter,

275
00:13:34,160 --> 00:13:36,840
Speaker 6: the main mediator in the hostage release and the Truth,

276
00:13:37,000 --> 00:13:40,920
Speaker 6: said yesterday that it is working on the political level

277
00:13:41,040 --> 00:13:44,719
Speaker 6: to extend the Truth, and President Biden also showed that

278
00:13:44,760 --> 00:13:49,000
Speaker 6: the US wants that ceasefire extended to allow more hostages

279
00:13:49,040 --> 00:13:52,880
Speaker 6: to be released. But there's a detail there that's been overlooked,

280
00:13:52,920 --> 00:13:56,840
Speaker 6: and it's what Cutter's Prime minister said yesterday and today

281
00:13:57,679 --> 00:13:59,880
Speaker 6: in an interview. Actually he said that more than forty

282
00:14:00,040 --> 00:14:03,319
Speaker 6: other women and children were being kept captive in Gaza

283
00:14:03,400 --> 00:14:05,960
Speaker 6: who were not believed to be held by Hamas, so

284
00:14:06,040 --> 00:14:09,320
Speaker 6: either by civilians or gangs. He said, the Truth and

285
00:14:09,360 --> 00:14:14,040
Speaker 6: its extension could be extended if Hamas was able to

286
00:14:14,520 --> 00:14:16,560
Speaker 6: use the pause in the conflict.

287
00:14:16,120 --> 00:14:17,800
Speaker 7: To locate these hostages.

288
00:14:18,160 --> 00:14:21,040
Speaker 6: So the onset of the crisis, when it happened, and

289
00:14:21,120 --> 00:14:25,600
Speaker 6: when after of course Hamas infiltrated Israel.

290
00:14:25,920 --> 00:14:28,200
Speaker 7: Hamas itself and its officials said.

291
00:14:28,080 --> 00:14:31,000
Speaker 6: We know how many we are holding, we don't know

292
00:14:31,160 --> 00:14:35,080
Speaker 6: how many the others are holding. And this could come

293
00:14:35,120 --> 00:14:37,720
Speaker 6: out to be kind of a difficult thing to actually

294
00:14:37,880 --> 00:14:42,440
Speaker 6: locate the hostages, so that the extension might depend on that,

295
00:14:42,560 --> 00:14:46,400
Speaker 6: on whether there is and whether Hamas can actually locate

296
00:14:46,560 --> 00:14:47,320
Speaker 6: the hostages.

297
00:14:48,040 --> 00:14:52,200
Speaker 2: Yeah, okay, so that on the situation with hostages and Gaza.

298
00:14:52,360 --> 00:14:55,960
Speaker 2: What is happening with humanitarian aid to Gaza.

299
00:14:56,520 --> 00:15:00,640
Speaker 6: Hundreds of trucks have entered Gaza, including fuel trucks, food

300
00:15:00,800 --> 00:15:04,200
Speaker 6: and also non feud items. So the pause has allowed

301
00:15:04,200 --> 00:15:06,840
Speaker 6: the UN to scale up the delivery of assistance into

302
00:15:07,000 --> 00:15:10,600
Speaker 6: and across Gaza, and Cutter said yesterday that for the

303
00:15:10,640 --> 00:15:14,480
Speaker 6: first time since the war began, food trucks and aid

304
00:15:15,080 --> 00:15:19,040
Speaker 6: actually entered the northern sector of Gaza, where the main

305
00:15:19,240 --> 00:15:21,920
Speaker 6: ground operation of Israel was concentrated.

306
00:15:21,960 --> 00:15:25,320
Speaker 7: And so that was a good signal.

307
00:15:25,400 --> 00:15:28,800
Speaker 6: But of course everyone including the UN, is saying we

308
00:15:28,840 --> 00:15:32,880
Speaker 6: need more to come in, and that could also have

309
00:15:32,920 --> 00:15:36,280
Speaker 6: a potential impact on whether the truth could be extended

310
00:15:36,360 --> 00:15:39,640
Speaker 6: or not. For the sake of allowing more aid into

311
00:15:39,800 --> 00:15:40,400
Speaker 6: the unclay.

312
00:15:41,800 --> 00:15:44,520
Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

313
00:15:44,600 --> 00:15:47,640
Speaker 3: stories making news from London to Wall Street and beyond.

314
00:15:47,920 --> 00:15:51,880
Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify,

315
00:15:52,000 --> 00:15:53,920
Speaker 2: and anywhere else you get your podcasts.

316
00:15:54,000 --> 00:15:57,000
Speaker 3: You can also listen live each morning on London DAB Radio,

317
00:15:57,040 --> 00:16:00,000
Speaker 3: the Bloomberg Business app, and Bloomberg dot Com.

318
00:16:00,080 --> 00:16:03,040
Speaker 2: Flagship New York station. Is also available on your Amazon

319
00:16:03,080 --> 00:16:07,720
Speaker 2: Alexa devices. Just say Alexa play Bloomberg eleven thirty. I'm

320
00:16:07,760 --> 00:16:08,840
Speaker 2: Caroline Hepka and.

321
00:16:08,760 --> 00:16:11,440
Speaker 3: I'm Stephen Carol. Join us again tomorrow morning for all

322
00:16:11,480 --> 00:16:13,880
Speaker 3: the news you need to start your day right here

323
00:16:13,920 --> 00:16:17,480
Speaker 3: on Bloomberg Daybreak Europe