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

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Speaker 1: Day Bicit podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Friday, the fifteenth of March here

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Speaker 1: in London. I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carroll. Coming up today, Emmanuel Macran warns of

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Speaker 2: an existential threat from Russia unless Putin's forces are defeated

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Speaker 2: in Ukraine.

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Speaker 1: Maybe not. Rishi Sunak rules out the idea of a

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Speaker 1: uk general election in six weeks time.

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Speaker 2: And we have a special report from Paris on a

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Speaker 2: once notorious drugs hotspot that's now getting a new lease

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Speaker 2: of life from the Olympic Games.

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Speaker 1: Let's start with the roundup of our top stories. France's

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Speaker 1: President Emmanuel Macon says the EU faces an existential threat

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Speaker 1: unless Russian forces are defeated in Ukraine. Macron has sought

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Speaker 1: to take a lead on European support for Kiev, organizing

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Speaker 1: a summit at which countries agreed to source ammunition from

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Speaker 1: outside the EU. He's been speaking to French television a

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Speaker 1: head of a meeting with Polish and German leaders. Later,

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Speaker 1: we have.

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Speaker 3: Suffered the consequences in Europe the price of gas, the

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Speaker 3: economic situation, the price of grain, the economic disruptions that

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Speaker 3: followed are the consequences of this war that Russia has started.

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Speaker 3: If Russia wins this war, the credibility of Europe will

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Speaker 3: be reduced to zero. What would be the credibility in

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Speaker 3: our countries of an EU whose members allowed that to happen?

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Speaker 1: Immanuel Macon via a translator. His comments come as voters

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Speaker 1: head to the polls in Russia for a presidential election

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Speaker 1: Vladimir Putin is all but guaranteed to win. Russian forces

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Speaker 1: appear to be gaining the advantage in Ukraine, while Kiev

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Speaker 1: is still waiting on a sixty billion dollar aid package

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Speaker 1: from the United States, which has been held up by

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Speaker 1: political wrangling in Washington.

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Speaker 2: The Prime Minister Rishisnak has ruled out a uk general

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Speaker 2: election on the second of May. Here he is speaking

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Speaker 2: to IV News.

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Speaker 4: We've got elections for police and CORPC commissioners, for local councils,

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Speaker 4: for mayors of yes, the country. They're important elections and

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Speaker 4: not a general election. That's what I'm focused on. There

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Speaker 4: won't be a general election on that day. But when

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Speaker 4: there is a general election, what matters is the.

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Speaker 2: Choice Prime Minister also told ITV news it was his

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Speaker 2: working assumption that the election would take place in the

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Speaker 2: second half of the year. There had been speculation that

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Speaker 2: he could call a national ballot for the spring. A

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Speaker 2: general election needs to be held before the end of

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Speaker 2: January next year.

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Speaker 1: The Conservative government made leveling up a key election promise

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Speaker 1: back in twenty nineteen, but MPs have found that plans

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Speaker 1: to improve disadvantage UK regions are far behind scheduled, with

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Speaker 1: only one in five expected to meet a deadline next month.

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Speaker 1: Bloemberg's Tiba Adebayo has the story more.

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Speaker 5: Than ten billion pounds was set aside to level up Britain,

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Speaker 5: a core pledge of the Johnson government.

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Speaker 6: We are going to unite and level up, unite and

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Speaker 6: level up, ringing together the at this incredible United Kingdom, England, Scotland, Wales,

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Speaker 6: Northern Ireland together taking us forward, unleashing the potential of

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Speaker 6: the whole country.

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Speaker 5: Yet five years on, the Public Accounts Committee says only

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Speaker 5: ten percent of that money has been spent. Projects in

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Speaker 5: the first round of funding should be completed by deadline

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Speaker 5: next month. Four and five say they'll miss that date.

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Speaker 5: The committee says the government are unable to provide compelling

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Speaker 5: evidence of what leveling up has achieved. In London tiwa

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Speaker 5: Adebayo Bloomberg Radio.

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Speaker 2: The European Central Bank has achieved a soft landing for

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Speaker 2: the euro Area economy, according to Governing Council member Janis Stunaries.

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Speaker 2: He told an event in London that monetary policy had

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Speaker 2: been successful despite all the criticism. Meanwhile, the ECP's Vice

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Speaker 2: President Leasta Gainedos in separate comments in Barcelona, reiterated that

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Speaker 2: inflation is returning to the two percent target, though weighed

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Speaker 2: pressures still pose risks. ECB officials have ramped up the

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Speaker 2: debate on how soon they may slash interest rates, with

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Speaker 2: Stunara's telling bloom At at least two cuts are needed

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Speaker 2: before the August summer break.

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Speaker 1: New data is giving the Federal Reserve even more reason

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Speaker 1: to delay interest cuts. In the US, producer price increases

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Speaker 1: were up by six tens of one percent in February,

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Speaker 1: which was more than forecasts, while unemployment data showed fewer

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Speaker 1: people applied for and received jobless benefits than previously thought.

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Speaker 1: The findings on PPI and unemployment are likely to overshadow

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Speaker 1: cooling consumer spending shown in the latest retail sales figures.

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Speaker 1: Willim Sales, chief investment officer at HSBC Global Private Banking

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Speaker 1: and Wealth, says that the equity market remains resilient.

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Speaker 7: And then the inflation data, I'm not too worried about

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Speaker 7: that because it's very much at a margin that it is,

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Speaker 7: you know, above expectations. And what you see is that

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Speaker 7: the margins of corporates are still going up. So the

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Speaker 7: equity market is actually taking it more in its try

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Speaker 7: than the bond market is. Right, with a big bond

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Speaker 7: market moved, the equity market only moving relatively small in

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Speaker 7: the US last night, you know, because those earnings are there.

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Speaker 1: HSBC's Willem Sells was speaking ahead of next week's FED meeting,

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Speaker 1: where officials are expected to leave interest rates unchanged.

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Speaker 2: New date on the Chinese economy throughout next week is

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Speaker 2: expected to show a mixed start to the year. Economists

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Speaker 2: surveyed by Bloomberg see retail sales and industrial outputs slowing

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Speaker 2: down in January compared to December. Property development investment is

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Speaker 2: expected to have plunged as the sector fails to mount

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Speaker 2: a meaningful turnaround. The figures published on Monday are likely

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Speaker 2: to add to doubts about whether China can meet its

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Speaker 2: twenty twenty four growth target of around five percent.

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Speaker 1: And an employee at Deutsche Bank raked in more than

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Speaker 1: fourteen million euros last year, making them the lender's top

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Speaker 1: earner in almost a decade, according to the bank's annual report.

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Speaker 1: That's almost double the eight point seven million euros paid

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Speaker 1: to CEO Christians Saving last year. The top salary day

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Speaker 1: comes on the same day that Deutsche Bank announced a

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Speaker 1: cut in its overall bonus pool following week performance of

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Speaker 1: its investment banking division.

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Speaker 2: Those are our top stories on the program. On the markets,

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Speaker 2: the Msciish Pacific Index is nine tenths of one percent

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Speaker 2: lower this morning, Eurostock's fifty features are down by a

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Speaker 2: tenth of one percent, and the tenure Treasury yield a

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Speaker 2: basis point lower at four point two eight percent.

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Speaker 1: Now, in a moment, we're going to get more on

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Speaker 1: Immanuel and Macon's blunt warnings about the threat to Europe

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Speaker 1: from Vladimir Putin. You know, the whole TV interview really

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Speaker 1: designed to make Europe sit up and think. But first,

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Speaker 1: since Friday and I thought we should at least have

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Speaker 1: one lighter note, something about a sandwich.

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Speaker 2: I mean, who doesn't love a nice sandwich, says he hungrily.

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Speaker 2: This is to do with a new wildly expensive wagyu

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Speaker 2: beef sandwich that arrives in November to a new restaurant

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Speaker 2: that's opening in Miami.

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Speaker 8: Yeah.

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Speaker 1: This is the chef Kentara Nakahara. He invented the fried

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Speaker 1: wagu sandwich twenty years ago and it's become, of course,

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Speaker 1: like the Instagram favorite luxury sandwich. But he's opening a

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Speaker 1: new restaurant in Miami's Design District in November. Blueboth Pursuits

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Speaker 1: has been writing all about this. Apparently only ten seats

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Speaker 1: in this little restaurant and.

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Speaker 2: You have to get the full tasting menu to get it.

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Speaker 2: So you had to take the ten course the ten

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Speaker 2: course menu of for three hundred and fifty dollars.

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Speaker 1: I do you think that sounds like a punishment.

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Speaker 2: Done worse things for a sandwich.

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Speaker 8: Yeah.

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Speaker 1: The problem is the punishment might come at the end,

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Speaker 1: maybe three hundred and fifty bucks for this menu. But anyway,

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Speaker 1: it's a nice little story. You know, how to spend

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Speaker 1: the hard ened money on a Friday. There you go

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Speaker 1: in dude.

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Speaker 2: Let's get back to more details though. On our top story,

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Speaker 2: in the interview from the French president, saying that Europe

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Speaker 2: faces an existential threat if Russia wins its war in Ukraine.

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Speaker 2: This is voting gets underway in Russi's presidential election today

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Speaker 2: ORIMA News director Rosalind Matheson joins us in studio for

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Speaker 2: more on this ra Emmanuel Macron was blunt, was quite

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Speaker 2: clear in his interview with those French television stations, saying

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Speaker 2: that this is an existential threat not only for France

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Speaker 2: but for the EU. Is his warning justified?

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Speaker 9: Well, it comes at a time obviously there's a high

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Speaker 9: level of concern about the future of Europe, particularly with

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Speaker 9: the prospect of Vladimir Putin being re elected this weekend

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Speaker 9: in Russia for another term and possibly able to rule

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Speaker 9: for another two terms even and that at some point

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Speaker 9: what does that mean for European security beyond Ukraine. And

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Speaker 9: you've had these warnings for many, many months from the

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Speaker 9: Eastern European states, in particular the Baltics, those who are

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Speaker 9: really close to Russia and feeling it very keenly that

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Speaker 9: they're not crying wolf when they're saying there's a possibility

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Speaker 9: that Vladimir Putin at some point will attempt to push

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Speaker 9: further than Ukraine and into Eastern Europe, and a sense

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Speaker 9: that Western Europe hasn't necessarily appreciated that so much. And

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Speaker 9: so what you're seeing is an effort today when Emmanuel

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Speaker 9: Macron meets with his counterpart from Germany and from Poland,

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Speaker 9: is to show that united front that they collectively feel

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Speaker 9: that Europe needs to be waking up to the risk

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Speaker 9: of Russia pushing on and they need to be also

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Speaker 9: more united in their approach to Ukraine and in supporting Ukraine,

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Speaker 9: because what we've really seen in recent weeks, in months

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Speaker 9: is this strong sense of disconnect and disagreement really between

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Speaker 9: the leaders of France and Germany. And at least today

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Speaker 9: they're going to try and show an effort to paper

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Speaker 9: over that.

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Speaker 1: Yeah, the difficulties of their working relationship. Look, there's no

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Speaker 1: doubt about the result on March seventeenth on the Russian

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Speaker 1: election pretty much. But how has Putin portrayed himself, how

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Speaker 1: has he used, you know, some of the events around

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Speaker 1: this vote.

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Speaker 9: Well, certainly he's been talking very much to the Russian

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Speaker 9: people and keeping up that rhetoric that he's been using,

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Speaker 9: which is that Russia is fundamentally under attack from the West,

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Speaker 9: that it's under siege, that only he can restore Russia

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Speaker 9: to some of its former glory. He talks a lot

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Speaker 9: about history, about the past, about what he sees Russia

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Speaker 9: has been, and it's sort of an imperialist tone, right,

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Speaker 9: that Russia can be great again. We've always heard those

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Speaker 9: words make a certain country grady game. Well, he's using

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Speaker 9: them very much when it comes to Russia, and so

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Speaker 9: he's been appealing to that sense of nationalism inside Russia.

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Speaker 9: He's also, you know, the economy has been doing pretty well.

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Speaker 9: It's on a war footing, salaries have been rising, there's

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Speaker 9: tightness in the labor market for obvious reasons, and so

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Speaker 9: inside Russia the economy is not too bad and people

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Speaker 9: can really point to those higher wages for themselves. And

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Speaker 9: so now at least he can say, look, the economy

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Speaker 9: is doing pretty well. That's a strong message to the

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Speaker 9: Russian people, and I'm delivering on sort of making you

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Speaker 9: proud of Russia again. And those messages are resonating.

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Speaker 2: Could this election actually in bold in Vlasimir Putin though

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Speaker 2: to step up the military campaign in Ukraine. Could it

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Speaker 2: change the dynamic and the war?

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Speaker 9: Well, at the moment, Russia does seem to be on

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Speaker 9: the front foot, at least inside Ukraine. Ukrainians are having

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Speaker 9: quite difficulty on the ground, although they're having much more

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Speaker 9: success outside Ukraine, targeting Russian shit lips in the Black

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Speaker 9: Sea and Russian assets, you know, particularly refineries infrastructure inside Russia,

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Speaker 9: which is pretty embarrassing for Vladimir Putin to have that

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Speaker 9: happen inside his own territory, which raises the risk of

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Speaker 9: him retaliating further against Ukraine. But also he does seem

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Speaker 9: to think that he's on the front foot in general,

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Speaker 9: and so does that embolden him to push on. Especially

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Speaker 9: at the moment when Ukraine is so short of ammunition

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Speaker 9: and artillery. This is a good moment for him to

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Speaker 9: press forward militarily because there's no sense that that big package,

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Speaker 9: particularly from the US of Military eight, is coming anytime soon.

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Speaker 1: Yeah. Absolutely, Vadimir Putin on trap for a fifth term

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Speaker 1: and what it means for Ukraine and for Europe. Our

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Speaker 1: Bloomberg EMEA news director was in Mathison. Thank you so

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Speaker 1: much for your time.

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Speaker 2: Now, a neighborhood in Paris, notorious for its past as

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Speaker 2: a den for crack cocaine dealers, is getting a new

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Speaker 2: lease of life thanks to the Olympics. But as the

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Speaker 2: area changes and new people move in, can the city

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Speaker 2: that the residents who were there in the first place

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Speaker 2: don't get kicked out. Boomberg's Cheney Chay joins us now

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Speaker 2: from Paris with more on this story this morning. Jenny,

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Speaker 2: good morning to you and talk to us about this neighborhood.

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Speaker 2: It's in the very north of Paris. What do people

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Speaker 2: think of when they think about Port de la.

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Speaker 10: Chappelle, Hi thinks, yes, so this is very far from

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Speaker 10: your usual tourist destinations. It's all the way on the

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Speaker 10: northern edge of the city. As you say, it's right

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Speaker 10: next to the Ring Highway that separates Paris from the suburbs.

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Speaker 10: There's a lot of construction right now. It's very car heavy.

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Speaker 10: It's not a place to go for a stroll, and

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Speaker 10: it's known for it for being a tough area. It

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Speaker 10: used to be a crackton. The city also set up

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Speaker 10: a migrant shelter there in twenty sixteen and then closed

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Speaker 10: it after two years. The police would routinely clear it

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Speaker 10: of migrant camps, so there hasn't been much there to

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Speaker 10: entice Parisians to trek all the way out.

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Speaker 1: But how's the neighborhood changed then?

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Speaker 10: In recent years, the biggest change is this shiny new

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Speaker 10: sport complex called the Arena that's just been completed ahead

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Speaker 10: of the Olympics, and that's where badminton and rhythmic gymnastics

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Speaker 10: events will be held this summer. And the arena really

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Speaker 10: anchors the urban regeneration efforts in the area. The city's

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Speaker 10: redeveloping a lot of the land around it, adding more housing.

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Speaker 10: The first buildings have gone up. There will be at

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Speaker 10: least one hundred and fifty new apartments there now.

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Speaker 2: Officials have said that they want to protect the current

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Speaker 2: residents of this neighborhood. Jenny, you've been speaking to the

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Speaker 2: local mayor, Eric Lejuandre, who is the mayor of the

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Speaker 2: Eighteentharran Desmon.

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Speaker 8: We're doing this with the residents. We're not replacing them.

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Speaker 8: We're creating more housing, We're creating socio economic diversity. The

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Speaker 8: residents are very proud to see the neighborhood change. This

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Speaker 8: is what happens when changed, nay through public policy, when

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Speaker 8: we don't let the market that's by itself.

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Speaker 2: So that's the mayor of the eighteentharr And Deismo in Paris,

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Speaker 2: this area that we're talking about this morning, Jenny, how

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Speaker 2: does the city plan to prevent these original residents from

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Speaker 2: being priced out?

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Speaker 10: Yeah, so there's obviously concern whenever you have this kind

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Speaker 10: of new housing construction, are wealthier people going to come

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Speaker 10: in and replace the people who are there in the

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Speaker 10: first place. The city has a tiered system for the

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Speaker 10: residential projects in the area. It varies from one to

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Speaker 10: the other, but essentially essentially around thirty five to fifty

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Speaker 10: percent of the units will be social housing, so that's

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Speaker 10: reserved for the lowest income households. Then you have intermediary

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Speaker 10: housing where rents are kept below market and BRS, which

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Speaker 10: is this kind of special program where lower income people

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Speaker 10: can buy property but they don't actually own the land

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Speaker 10: underneath it, and that basically cuts the home price in half.

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Speaker 10: But there is a trunk of apartments that will be

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Speaker 10: ultimately rented or sold at market price, and that will

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Speaker 10: be anywhere from fifteen to forty five percent of the units,

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Speaker 10: depending on the area.

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Speaker 2: So the makeup of this neighborhood is going to change

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Speaker 2: as a result of this issue that's proved somewhat controversial.

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Speaker 2: This is what the Paris mayor and Nidalgo has said about.

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Speaker 11: That's that's our policy, Douclas Moyen. It really is about

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Speaker 11: keeping the middle class and the working class and also

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Speaker 11: for new populations to come in to go in this neighborhood.

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Speaker 11: Was to balance that with the middle class.

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Speaker 2: Moyen, that's the mayor of Paris and Hidalgo. Jenny, Let's

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Speaker 2: talk about the impact the Olympics is going to have

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Speaker 2: on this area. There's this debate about what sort of

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Speaker 2: change is going to make this neighborhood. What's the Olympics

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Speaker 2: going to change.

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Speaker 10: So tours, as we said, you know, they don't really

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Speaker 10: come to Bordadeschapelle, but the arena will post these events

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Speaker 10: during the Olympics, which means there'll be tens of thousands

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Speaker 10: of people going there and after the games. The sports

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Speaker 10: complex is going to be the home of the Paris

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Speaker 10: basketball team. It's a relatively new team founded by a

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Speaker 10: former NBA executive and a former Goldman Sax banker. And

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Speaker 10: there's also a which is paying around two million euros

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Speaker 10: a year for five years to brand to have its

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Speaker 10: name branded on the arena. So there's a lot of

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Speaker 10: investment going into the neighborhood, and I think the city

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Speaker 10: doesn't want to give people a reason to come here.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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