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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Day Baker podcast. Good morning, It's Tuesday,

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Speaker 2: the ninth of September. I'm Caroline Hepga in London.

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Speaker 3: And I'm Stephen Caroline Paris, where Emmanuel Macro is running

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Speaker 3: out of options as he looks to appoint the seventh

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Speaker 3: prime minister of his presidency after the country's government collapses

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Speaker 3: once again.

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Speaker 2: And in other news, Democrats release an alleged birthday note

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Speaker 2: they say Donald Trump sent to the disgrace financier Jeffrey Epstein.

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Speaker 2: Plus Power and politics, Britain's plan to become a green

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Speaker 2: energy superpower faces a growing right wing backlash. Let's start

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Speaker 2: with a round up of our top stories. France's President,

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Speaker 2: Emmanuel Macoy is searching for a new prime minister after

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Speaker 2: Francois Beiru lost a confidence vote in parliament. The outgoing

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Speaker 2: premier will present his government's resignation to the president later

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Speaker 2: this morning after failing to win support for his deficit

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Speaker 2: cutting plans. Bruno Rutaeo, who leads the center right Republicans

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Speaker 2: Party and served as Interior minister in the Beiru government,

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Speaker 2: says the president must act swiftly.

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Speaker 1: And this ame for the problem now is that we

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Speaker 1: will first need a prime minister as soon as possible,

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Speaker 1: because we are heading into difficult days and France needs

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Speaker 1: a budget.

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Speaker 2: Bruno Ruteo speaking there via a translator. The market reaction

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Speaker 2: has been muted, as investors had expected the downfall of

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Speaker 2: the government. Macro is now seeking a fifth prime minister

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Speaker 2: in less than two years. In a statement, the president

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Speaker 2: says he will appoint a new premier in the coming days.

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Speaker 2: Norway's labor Prime Minister, Yunus gar Stor, has declared victory

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Speaker 2: in a national election after seeing off a surge of

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Speaker 2: support for the populist right. The country's center left minority

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Speaker 2: government one a second term in power, securing just over

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Speaker 2: half of all seats in the legislature. The anti immigration

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Speaker 2: Progress Party secured its best result on record, with about

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Speaker 2: twenty four percent of public backing in Norway versus twenty

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Speaker 2: eight percent for the Prime Minister's party, in a campaign

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Speaker 2: that was dominated by debates about welfare, taxes on wealth

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Speaker 2: and Norway's oil fund investments in Israel. In the US House,

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Speaker 2: Democrats have released an alleged birthday note they say Donald

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Speaker 2: Trump sent to the convicted p Dephile Jeffrey Epstein as

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Speaker 2: part of a book to celebrate his fiftieth birthday in

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Speaker 2: two thousand and three. The note includes the sign off,

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Speaker 2: may every day be another wonderful secret, complete with the

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Speaker 2: sketched outline of a woman's body. Trump has denied composing

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Speaker 2: the message or that the note existed, and has sued

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Speaker 2: The Wall Street Journal's reporters, publisher, and founder after it

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Speaker 2: was initially reported into lie. Bloomberg's Wendy Benjaminson explains some

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Speaker 2: of the arguments about whether or not the letter is real.

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Speaker 4: You know, we don't know if he really wrote it,

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Speaker 4: but we do know that it was given to the

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Speaker 4: House Overside Committee under subpoena from the Epstein estate. They

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Speaker 4: had it in the birthday book, They turned it over

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Speaker 4: to Congress, and Democrats today released that letter. So there

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Speaker 4: would have to be a lot of jiu jitsu going

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Speaker 4: on for that letter to be manufactured. Also remember that

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Speaker 4: House Republicans on the committee have seen it as well.

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Speaker 2: Bloomberg's Wendy Benjaminson speaking there. The release raises pressure on

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Speaker 2: the president over questions about his past interactions with the

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Speaker 2: late disgraced financier survivors of sexual abuse by Jeffrey Epstein

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Speaker 2: are calling on Congress to release all files related to

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Speaker 2: the case. US talks have been on a record breaking

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Speaker 2: run in recent months, but JP Morgan says that the

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Speaker 2: next move could sap investors risk appetite. The Lenders Trading

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Speaker 2: Desk believes a September interest rate cut could turn into

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Speaker 2: a quote sell the news event with investors pulling back.

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Speaker 2: In a separate warning, Goldbin Sachs CEO David Solomon said

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Speaker 2: that he's not convinced by the case for rapid rate cuts.

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Speaker 5: This doesn't feel to me like the policy rate is

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Speaker 5: extraordinarily restrictive at the moment when you look at risk appetite,

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Speaker 5: and so you know, risk appetite is definitely you know,

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Speaker 5: out on what i'd say is the more exuberant end

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Speaker 5: of the spectrum.

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Speaker 2: David Solomon's comments at a Berkleay's Financial Services conference. Meanwhile,

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Speaker 2: a top economist that Citadel has shared his thoughts on

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Speaker 2: the US economy, and Haloubide, the Hedge Funds head of

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Speaker 2: economic research for Fixed income and Macro, says the US

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Speaker 2: economy is on the good side of a quote fragile equilibrium,

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Speaker 2: but warned we are quote close to the edge. Now,

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Speaker 2: Rupert Murdoch and his children have settled litigation over the

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Speaker 2: trust which controls his media empire. Under the agreement, Murdoch's

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Speaker 2: eldest son, Lachlan will remain in charge of the company.

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Speaker 2: Bloomberg's Tiva Adebayo has more.

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Speaker 6: It's the family dynasty, which reportedly inspired hit TV series Succession,

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Speaker 6: but it seems the Murdochs have elected to keep the

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Speaker 6: drama on screen, settling on the future of their globe

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Speaker 6: spanning media empire. A new family company controlled by Lachlan

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Speaker 6: Murdoch will have a voting stake in Fox and News Corp,

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Speaker 6: whilst three of Murdoch's children will cease to be beneficiaries

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Speaker 6: of the trust instead, Bloomberg understands Prudence, Elizabeth and James

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Speaker 6: will each receive one point one billion dollars. The agreement

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Speaker 6: concludes a legal battle which started in twenty twenty three

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Speaker 6: when Rupert Murdoch first sought to change the family trust,

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Speaker 6: putting Lachlan in control. News Corp and Fox will sell

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Speaker 6: shares worth about one point four billion dollars on behalf

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Speaker 6: of the three children leaving the trust. In London TIAA

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Speaker 6: added by Bloomberg Radio.

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Speaker 2: Now European car makers, including Mercedes and Volkswagen, are railing

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Speaker 2: against EU plans to phase out new combustion engine cars

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Speaker 2: by twenty thirty five. The news comes as industry leaders

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Speaker 2: at this week's Munich Auto Show promoted their new electric vehicles.

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Speaker 2: Volkswagen CEO Oliver Bloom told Bloomberg the company is working

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Speaker 2: to expand its EV offering.

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Speaker 7: Yesterday, it was a fantastic day being able to present

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Speaker 7: our new electric urban family from Volkswagen, beside of a

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Speaker 7: lot of new technologies, and our ambition is to provide

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Speaker 7: technology for the people, and that's what we are doing

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Speaker 7: now with the entry level electric cars. We are market

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Speaker 7: leader with eighty twenty eight percent in the electric segment,

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Speaker 7: and these new products will give us a NASA.

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Speaker 2: Push Folksville, bargains Oliver Bloom. Speaking there, he also told

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Speaker 2: journalists that it would be unrealistic to expect to have

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Speaker 2: one hundred percent electric vehicles by twenty thirty five. His

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Speaker 2: words come ahead of a summit on Friday between the

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Speaker 2: European Commission, president of Silivandelion and heavyweights from the industry.

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Speaker 2: German charlece of Friedrich Mehert, whose party has been critical

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Speaker 2: of the phase out, is scheduled to speak at the

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Speaker 2: Munich Show later today to that on cars. Just lastly,

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Speaker 2: Barkley Ceocsven Katakrishnan has warned that a windfall tax on

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Speaker 2: banks here in the UK could hinder the government's push

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Speaker 2: to boost growth in the economy. But both you and

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Speaker 2: Potts has more now.

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Speaker 8: The Barclay CEO says that the roots of growth is

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Speaker 8: through investments and not through a bank tax. Speaking at

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Speaker 8: a Barclay's conference in New York, he also argued that

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Speaker 8: UK lenders already pay a higher rate than their peers

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Speaker 8: in the US and Europe. He warns that more tax

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Speaker 8: would damage a sector that employs ten percent of the population.

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Speaker 8: The intervention comes after a recent think tank report said

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Speaker 8: a higher bank levy could raise as much as thirty

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Speaker 8: two billion pounds over the next five years. In London,

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Speaker 8: I'm une parts of Bloomberg Radio.

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Speaker 2: And those are our top stories for you this morning.

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Speaker 2: Let's take you through the markets. Global stocks climbing for

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Speaker 2: a fifth day, Asian equities hire half of one percent

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Speaker 2: on the MSCI Asia Pacific Index. This is after a

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Speaker 2: surge in bets on US interest rates coming down. That

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Speaker 2: has also helped the S and P five hundred close

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Speaker 2: near another record high on Monday. Stop futures for the

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Speaker 2: US are also up, but USTOK fifty futures are down

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Speaker 2: a quarter of one percent, perhaps weighed down by the

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Speaker 2: political issues in France. Will be watching that French German

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Speaker 2: spread when things get going here in Europe. Later this morning,

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Speaker 2: TENNY US Treasury yels trading at sport four spot zero

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Speaker 2: four bloom mcdollar spot indexes down a tenth of one percent.

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Speaker 2: The euro is actually strengthening. Oil prices are up seven

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Speaker 2: tenths for Brent and WTI creed futures those aren't the

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Speaker 2: market now. In a moment, will be being you the

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Speaker 2: latest on the political chaos in France and also discuss

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Speaker 2: why Britain's dreams of becoming a green superpower could be

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Speaker 2: about to run into difficulties. Before that, though, another story

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Speaker 2: that caught my eye, and this was all about the

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Speaker 2: tube strike. London is flocking to lime and forest bikes

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Speaker 2: and scooters yesterday. They were parked all over the pavements

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Speaker 2: and spilling onto the roads in the city when I

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Speaker 2: left the office yesterday. But It was interesting that Lime

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Speaker 2: said that total trips during that four hour rush hour

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Speaker 2: commute period yesterday jump fifty eight percent, no surprise, but

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Speaker 2: people also did travel further and for longer. I just

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Speaker 2: say it's lucky the weather was fine. The tube strike

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Speaker 2: is going to affect the whole of the capital for

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Speaker 2: this week. Our empty union saying, you know, the dispute's

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Speaker 2: over pay and trying to cut back their working hours.

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Speaker 2: They say that TfL transport for London are being intransigent,

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Speaker 2: and I see arguments now grow, at least by some

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Speaker 2: newspaper columnists in favor of going fully driverless for London

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Speaker 2: underground tube trains. I mean, some of the tube trains

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Speaker 2: are automated, and we do have one driverless train in

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Speaker 2: the DLR, but actually it cost a lot of money

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Speaker 2: to try to transfer to driverless. Anyway, interesting argument. So

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Speaker 2: that's one story I've been keeping an eye.

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Speaker 9: Right.

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Speaker 2: Let's go to France now, where President Emanu and Macon

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Speaker 2: Well accept the resignation of Prime Minister France. We're Bay

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Speaker 2: related today, but what next. Our own Stephen Carroll is

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Speaker 2: in Paris for US again today. You had a very

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Speaker 2: long day yesterday, Stephen, very interesting vote also lots of

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Speaker 2: speeches in Parliament. Bayreuth spoke at length about the challenges

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Speaker 2: of debt that France faces, but the result did seem

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Speaker 2: pretty inevitable, didn't it.

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Speaker 9: Yeah, I mean, look, the situation for France.

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Speaker 3: Barberio hadn't really changed from the moment that he first

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Speaker 3: called this vote two weeks prior, versus the action when

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Speaker 3: the actual votes came in in the National Assembly last night.

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Speaker 3: He used his speech to MPs to make the same

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Speaker 3: warnings that he's been making for weeks or even years.

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Speaker 3: France is drowning in a sea of debt. He talked

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Speaker 3: about submitting to debt being like submitting to military force.

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Speaker 3: He did also address some of the alternatives that some

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Speaker 3: of the other parties have talked about in terms of

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Speaker 3: how to close the deficit. He mentioned the taxes on

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Speaker 3: the rich which the opposition have called for, saying that

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Speaker 3: calling for it for those that are calling for it

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Speaker 3: forget that France needs investors and if they raise taxes

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Speaker 3: people will simply leave. There was even a nod to

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Speaker 3: the UK's change to non dom rules, which he said

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Speaker 3: it had created the immediate effect of exploding property prices

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Speaker 3: in Milan, but Ultimately, though, his warnings of dire consequences

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Speaker 3: came to nothing. MPs voted as they said they would.

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Speaker 3: He lost by a significant margin. He is the first

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Speaker 3: prime minister to fall on a confidence vote in the

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Speaker 3: fifth French Republic since nineteen fifty eight. Another unhappy record

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Speaker 3: for a prime minister under Emmanuel Macrow, who is now

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Speaker 3: looking for the seventh prime minister of his presidency and

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Speaker 3: the fifth in two years.

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Speaker 2: Oh dear, who will be prime minister next then? In France?

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Speaker 3: Well, look, it's the president's prerogative to choose, and he

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Speaker 3: can pick anyone that he likes. Some of the names

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Speaker 3: that are being talked about now come from within the

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Speaker 3: outgoing cabinet, the Defense Minister Sebastian Laclu, the Labor Minister

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Speaker 3: Katherine Vaudran, the Justice Minister Geraldomanan. But it's difficult to

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Speaker 3: see how they could succeed where Barnier and Francoi Bayrou

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Speaker 3: failed in the last two governments, to try and build

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Speaker 3: some sort of working minority in the parliament to get

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Speaker 3: measures past if he looked outside of his allies. The

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Speaker 3: Socialist Party has said they're ready to govern and they

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Speaker 3: were quick to offer their services after the vote yesterday,

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Speaker 3: but that comes with conditions. They've proposed an alternative version

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Speaker 3: of the budget that had been put forward by franso Bayrou,

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Speaker 3: which involve a slower pace of spending cuts and measures

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Speaker 3: like a wealth tax that would prove controversial to some

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Speaker 3: bringing the Socialist some boards may also cause splits among

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Speaker 3: the coalition that Macron already has in place. The center

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Speaker 3: right Republicans said they won't take part in the government

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Speaker 3: that's led by the Socialist Party.

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Speaker 6: Now.

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Speaker 3: One name which has resurfaced which might satisfy some of

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Speaker 3: the demands as Bonar Kaznov. He's a former prime minister

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Speaker 3: under fransvoor Roland who distanced himself from the new generation

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Speaker 3: of Socialists. Macron considered him last December when he was

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Speaker 3: looking for a prime minister as well.

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Speaker 9: There's a question too as to when we'll know.

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Speaker 3: Macron can take essentially as long as he wants to

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Speaker 3: make this decision. I was comparing the statements from the

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Speaker 3: Elise last December and yesterday. In December, the statement said

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Speaker 3: that Emmanuel Macron would name a prime minister in the

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Speaker 3: coming days. They added a word to yesterday's statement which

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Speaker 3: is sort of translated in the imminent coming days. Last

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Speaker 3: time around it took nine days, so perhaps we can

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Speaker 3: hope that there might.

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Speaker 9: Be a decision made faster than that this time around.

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Speaker 2: Oh okay, side by side statement comparisons. I mean, you know,

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Speaker 2: that just shows you how we are kind of rinse

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Speaker 2: and repeating this story in France. Surely the pressure on

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Speaker 2: Immanue and Macon is going to ratchet up even further.

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Speaker 2: I mean there have been calls for his resignation.

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Speaker 9: Yeah.

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Speaker 3: Indeed, the far left and the far right immediately repeated

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Speaker 3: their calls for Emmanual Macron to go after the confidence

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Speaker 3: vote collapse. The government of Francois Biroumanual Macron's term that

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Speaker 3: runs until twenty twenty seven. He's given no indication that

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Speaker 3: he plans to resign, and there's really no way to

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Speaker 3: get rid of him as president, despite those calls from

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Speaker 3: the significant.

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Speaker 9: Blocks in the Parliament.

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Speaker 3: It's worth though, remembering the space the public having all

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Speaker 3: of this as well. There are two major protests planned

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Speaker 3: in France. One is tomorrow, which is a movement that's

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Speaker 3: been largely organized on social media called Let's Block Everything,

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Speaker 3: and then a more formal demonstration organized by the unions,

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Speaker 3: which is happening next week. Both are expected to cause

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Speaker 3: major disruption to public services and transport. Their warnings of

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Speaker 3: course that there could also be issues around you know,

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Speaker 3: violence on the streets as well. That's something that some

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Speaker 3: people are definitely worried about here too. Emmanuel Macron, for

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Speaker 3: his part, will want to try and have an administration

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Speaker 3: in place as soon possible to deal with some of

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Speaker 3: those pressing issues, not least to get on with work

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Speaker 3: on the budget as well. But there's politics involved in

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Speaker 3: all of this as well, because we have to think

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Speaker 3: about how the next presidential election will play out. Emanuel

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Speaker 3: Macro will be thinking about who could replace him, who

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Speaker 3: could take his place from a centrist candidate for that too,

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Speaker 3: So the decisions that he makes now have an impact

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Speaker 3: on that as well. Just think about Mary Leapenn and

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Speaker 3: this Too Far Right, a President of the leader of

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Speaker 3: their group in the National Assembly. She's currently barred from

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Speaker 3: running for election after being found guilty of misuse of

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Speaker 3: EU funds in a trial. Her appeal will be heard

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Speaker 3: early next year, so we'll see whether or not she

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Speaker 3: could be eligible by twenty twenty seven, but an early

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Speaker 3: election would potentially rule her out otherwise, I say for

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Speaker 3: the moment, no sign that Emmanuel Macro is going to

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Speaker 3: respond to any of those calls for his resignation.

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Speaker 2: Stephen, thank you so much for being with us. Life

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Speaker 2: on Paris Blomberg's Stephen Cowell. Then on the latest what

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Speaker 2: we're expecting in France. Thank you so much for being

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Speaker 2: with us this morning. Stay with us. More from Bloomberg

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Speaker 2: Day BAQUB coming up after this. I want to turn

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Speaker 2: our attention to the UK now. The Labor government's pledge

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Speaker 2: to achieve a clean power grid by twenty thirty. Kirstarmer's

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Speaker 2: promise now faces a crucial economic test with a significant

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Speaker 2: offshore wind subsidy auction, but also growing political challenges too.

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Speaker 2: Joining me is Bloomberg's energy and climate change reporter Will Mathis.

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Speaker 2: Well good to speak to you. I thought your piece

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Speaker 2: when I met it this morning was just very interesting.

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Speaker 2: Firstly though the basics, I mean, how important was this

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Speaker 2: political promise, this campaign promise for clean power and actually

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Speaker 2: what does it involve?

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Speaker 10: Yeah, this was one of the key promises to during

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Speaker 10: the campaign for the Labor Party and it would involve,

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Speaker 10: you know, our transformation of the country power grid in

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Speaker 10: a way that no other country in the world has

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Speaker 10: done yet, so it would really be a test case

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Speaker 10: whether it's feasible to do the kind of deep de

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Speaker 10: carbonization of the power grid that many countries say they

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Speaker 10: would like to do to reach their clichnicals, but none

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Speaker 10: really have even a plan to do it. So the

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Speaker 10: UK has come up with a plan and is trying

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Speaker 10: to achieve it.

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Speaker 2: Okay, how does the government then deliver on this, because

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Speaker 2: it's a promise to both cut emissions and also to

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Speaker 2: cut consumers energy costs.

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Speaker 10: Yeah, those were two related promises. And you know, five

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Speaker 10: years ago it was easy to say that you could

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Speaker 10: increase renewable power and cut costs because wind power in particular,

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Speaker 10: which is what the UK really needs because you know

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Speaker 10: solar you know you're not going to get solar power

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Speaker 10: in the winter when people need the most electricity, and

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Speaker 10: or used to be getting cheaper and cheaper, but during

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Speaker 10: the pandemic supply chain constraints that inflation just led costs

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Speaker 10: to increase so much and that really hasn't changed the

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Speaker 10: price of building a offshore wind farm. It just keeps

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Speaker 10: getting more expensive. And so the idea now that you

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Speaker 10: can cut costs and cut emissions from the power system

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Speaker 10: by using offshore wind is looking a bit outdated and

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Speaker 10: it doesn't really seem like the government has reckoned with that.

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Speaker 10: And what they are saying now more and more is

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Speaker 10: that this is, you know, protects us from the risk

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Speaker 10: that gas prices could go up again like they did

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Speaker 10: a few years ago. And that's true. But it's also

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Speaker 10: true that if gas prices come down, then the UK

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Speaker 10: is looking increasingly expensive.

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Speaker 2: That's interesting and also, as you say, it's looking like

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Speaker 2: quite a vintage pledge because the political headwinds have shifted

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Speaker 2: their signific pressure to reverse course on green policies, I

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Speaker 2: mean from President Trump, other politicians, some corporates are also

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Speaker 2: changing their stance now, aren't they.

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Speaker 10: Yeah, that's right. I mean when Bresa May passed an

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Speaker 10: amendment that enshrined the UK's net zero pledge into law,

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Speaker 10: there was no dissent, you know, it passed with a

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Speaker 10: parliamentary procedure that doesn't require an actual vote, and it's

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Speaker 10: really impossible to think that that would happen today. You

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Speaker 10: have the Conservative Party criticizing net zero. You know, Nigel

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Speaker 10: Farage and his Reform Party, which are the leading the

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Speaker 10: polls today, are obviously very anti net zero or even

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Speaker 10: have talked about, you know, getting rid of these contracts

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Speaker 10: that have underpinned the drive for decarbonization and that political

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Speaker 10: consensus that exists in the UK for quite a long

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Speaker 10: time that you know the country needs to do more

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Speaker 10: and more to yes, clibate change has really cracked, and

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Speaker 10: we're going to see what that means for the actual

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Speaker 10: trajectory of policy of this country.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 9: I'm Caroline Hepka and I'm Stephen. Carol.

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Speaker 3: Join us again tomorrow morning for all the news you

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Speaker 3: need to start your day right here on Bloomberg Daybreak Europe.