1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,800 --> 00:00:12,080 Speaker 2: This is the Bloomberg Day baq At podcast. Good morning, 3 00:00:12,119 --> 00:00:14,800 Speaker 2: It's Monday, the twenty ninth of September. I'm Caroline hepkea 4 00:00:14,920 --> 00:00:15,920 Speaker 2: in London and. 5 00:00:15,840 --> 00:00:19,160 Speaker 1: I'm Stephen Caroline Brussels. Coming up today, the UK's Rachel 6 00:00:19,200 --> 00:00:22,360 Speaker 1: Reeves and Kir Starmer attempt a political fight back at 7 00:00:22,360 --> 00:00:26,880 Speaker 1: the Labor Party conference. Grounded in fiscal restraint and opposition 8 00:00:27,000 --> 00:00:28,280 Speaker 1: to Nigel Farage. 9 00:00:28,840 --> 00:00:32,920 Speaker 2: Moldova's ruling Pro EU party is on track to win 10 00:00:33,040 --> 00:00:39,080 Speaker 2: reelection after Bloomberg uncovered unprecedented voter interference efforts by Moscow. 11 00:00:39,520 --> 00:00:42,240 Speaker 1: Plus one way or another, the taxman is coming for 12 00:00:42,400 --> 00:00:45,880 Speaker 1: France's wealthiest. Why the tough choices facing the prime minister? 13 00:00:45,920 --> 00:00:48,920 Speaker 1: I mean the countries rich are likely to be paying more. 14 00:00:49,520 --> 00:00:51,680 Speaker 2: Let's start with a roundup of our top stories. 15 00:00:52,159 --> 00:00:55,320 Speaker 1: The UK's Prime Minister, Kir Starmer, is framing his political 16 00:00:55,400 --> 00:00:59,960 Speaker 1: survival as the country's best hope of defeating populism. Speaking 17 00:01:00,120 --> 00:01:03,200 Speaker 1: to the BBC as Labor Party members gathered in Liverpool 18 00:01:03,280 --> 00:01:06,319 Speaker 1: for their annual conference, Starmer said his government is in 19 00:01:06,360 --> 00:01:09,640 Speaker 1: a contest for Britain's soul, as he sought to draw 20 00:01:09,720 --> 00:01:13,120 Speaker 1: political battle lines with Nigel farajuas reform UK. 21 00:01:14,040 --> 00:01:16,920 Speaker 3: We have not had a proposition like reform in this 22 00:01:17,000 --> 00:01:19,360 Speaker 3: country ever before, and you've seen it in France and 23 00:01:19,440 --> 00:01:22,520 Speaker 3: Germany and plenty of other countries. This is a different fight. 24 00:01:22,600 --> 00:01:24,600 Speaker 3: It is a fight about who we are as a country. 25 00:01:24,720 --> 00:01:27,760 Speaker 3: It goes to the soul of our future. It will 26 00:01:27,760 --> 00:01:31,480 Speaker 3: be heard and the effects will be therefore generations. 27 00:01:32,280 --> 00:01:34,919 Speaker 1: Kir Starmer was speaking as his chancellor prepares to deliver 28 00:01:35,040 --> 00:01:38,400 Speaker 1: her conference speech later today. Confronting a black hole in 29 00:01:38,440 --> 00:01:42,200 Speaker 1: the public finances of at least twenty billion pounds, that's 30 00:01:42,280 --> 00:01:45,280 Speaker 1: left Rachel Reeves needing to draw plans for tax rises 31 00:01:45,319 --> 00:01:48,520 Speaker 1: in her autumn budget in November. At the same time, 32 00:01:48,600 --> 00:01:52,080 Speaker 1: she must convince voters that her economic program can offer 33 00:01:52,120 --> 00:01:56,320 Speaker 1: a compelling alternative to the populist right without risking her 34 00:01:56,360 --> 00:01:58,240 Speaker 1: reputation for fiscal prudence. 35 00:01:59,280 --> 00:02:02,640 Speaker 2: Lab is sas a political fight back come as the 36 00:02:02,680 --> 00:02:06,760 Speaker 2: government prepares to set out what contributions foreign workers must 37 00:02:06,840 --> 00:02:11,000 Speaker 2: make to claim settled status in the UK. Home Secretary 38 00:02:11,080 --> 00:02:15,320 Speaker 2: shabanamah Mood will tell the party's conference today that migrants 39 00:02:15,360 --> 00:02:18,280 Speaker 2: will have to earn the right to claim so called 40 00:02:18,440 --> 00:02:22,880 Speaker 2: indefinite leave to remain. This status grants access to certain 41 00:02:22,880 --> 00:02:26,200 Speaker 2: welfare benefits and the ability to work in the UK. 42 00:02:27,000 --> 00:02:29,679 Speaker 1: The government's efforts to tighten migration rules in the UK 43 00:02:29,800 --> 00:02:32,680 Speaker 1: comes as new data points to a weakening labor market. 44 00:02:32,919 --> 00:02:36,280 Speaker 1: Figures from the job Site indeed show that only fifty 45 00:02:36,360 --> 00:02:41,040 Speaker 1: six percent of postings included wage information in August. That's 46 00:02:41,080 --> 00:02:43,919 Speaker 1: a drop of nearly ten percentage points since the start 47 00:02:43,960 --> 00:02:46,239 Speaker 1: of the year, are the lowest chair since early twenty 48 00:02:46,320 --> 00:02:50,120 Speaker 1: twenty two. And let's say companies reluctance to disclose pay 49 00:02:50,360 --> 00:02:53,799 Speaker 1: suggests employers are no longer under pressure to boost wages. 50 00:02:54,240 --> 00:02:57,680 Speaker 2: Now, let's go to Moldova, where the pro European ruling 51 00:02:57,760 --> 00:03:00,600 Speaker 2: party is set to be re elected, keeping the country 52 00:03:00,680 --> 00:03:05,760 Speaker 2: on its path towards EU membership amid strained relations with Russia. 53 00:03:06,120 --> 00:03:11,320 Speaker 2: President Maya Sandhu's Action and Solidarity Party secured forty nine 54 00:03:11,320 --> 00:03:14,760 Speaker 2: point six percent of votes. That's according to the unofficial 55 00:03:14,800 --> 00:03:19,200 Speaker 2: results from almost ninety eight percent of precincts. The pro 56 00:03:19,280 --> 00:03:23,880 Speaker 2: Russian Patriotic Electoral Bloc came in second with twenty four 57 00:03:23,880 --> 00:03:29,040 Speaker 2: point five percent. President Maya Sandhu spoke about Russian interference 58 00:03:29,160 --> 00:03:33,160 Speaker 2: after casting her vote over the weekend. 59 00:03:34,240 --> 00:03:36,480 Speaker 4: We all know that the Russian Federation has been heavily 60 00:03:36,520 --> 00:03:39,600 Speaker 4: involved in the elections of the Republic of Moldova. I 61 00:03:39,640 --> 00:03:43,000 Speaker 4: have spoken and our institutions have spoken about various methods, 62 00:03:43,280 --> 00:03:45,960 Speaker 4: starting from attempts to buy votes, and hundreds of millions 63 00:03:45,960 --> 00:03:48,600 Speaker 4: of yuros have been spent for this. I've spoken about 64 00:03:48,600 --> 00:03:50,960 Speaker 4: the training of young people from the Republic of Moldova 65 00:03:51,040 --> 00:03:53,680 Speaker 4: to organized violence destabilizing actions. 66 00:03:53,720 --> 00:04:01,440 Speaker 2: President Maya Sandhu speaking there via a translator as the 67 00:04:01,560 --> 00:04:05,960 Speaker 2: result was coming in. If confirmed, it would be a 68 00:04:05,960 --> 00:04:09,360 Speaker 2: major blow to Russia after it allegedly spent millions of 69 00:04:09,400 --> 00:04:13,480 Speaker 2: dollars to install pro Moscow forces in Moldova's capital. 70 00:04:14,480 --> 00:04:16,920 Speaker 1: Cracks are beginning to show on the global stock rally, 71 00:04:16,920 --> 00:04:20,080 Speaker 1: according to research from Bloomberg Intelligence. That's even as a 72 00:04:20,120 --> 00:04:24,520 Speaker 1: second straight quarter of strong gains lifted indexes to record highs. 73 00:04:24,680 --> 00:04:26,560 Speaker 1: Bloomberg's team at a Bio has more. 74 00:04:27,480 --> 00:04:31,000 Speaker 5: For now, global stocks are benefiting from lucer fed policy, 75 00:04:31,160 --> 00:04:35,520 Speaker 5: resilient earnings, and surging commodities, but trouble could be brewing 76 00:04:35,560 --> 00:04:39,440 Speaker 5: on the horizon. A Bloomberg Intelligence breadth gage of equities 77 00:04:39,480 --> 00:04:43,600 Speaker 5: has fallen a full standard deviation below its average. Typically, 78 00:04:43,720 --> 00:04:47,200 Speaker 5: this pattern has flagged overheated rallies and been a precursor 79 00:04:47,240 --> 00:04:51,000 Speaker 5: to slowing returns. According to our analyst, signs suggest the 80 00:04:51,040 --> 00:04:54,240 Speaker 5: recent rally may cool over the next thirty to ninety 81 00:04:54,360 --> 00:04:58,279 Speaker 5: trading days. In London, Teama at a Bio Bloomberg Radio. 82 00:04:59,320 --> 00:05:03,200 Speaker 2: Team Europe have won Golf's Ryder Cup on American sore 83 00:05:03,279 --> 00:05:08,240 Speaker 2: for the first time since twenty twelve. Luke Donald's team 84 00:05:08,960 --> 00:05:11,920 Speaker 2: held off a spirited comeback from their hosts in New 85 00:05:12,000 --> 00:05:14,720 Speaker 2: York to win the trophy by fifteen points to thirteen. 86 00:05:15,120 --> 00:05:19,440 Speaker 2: Irishman Shane Lowry secured the trophy with a nail biting 87 00:05:19,520 --> 00:05:20,400 Speaker 2: final part. 88 00:05:20,800 --> 00:05:21,679 Speaker 1: To retain the cup. 89 00:05:24,520 --> 00:05:29,160 Speaker 6: Lowly does it, Lowly has it, Leaping and hollering and celebrating, 90 00:05:29,880 --> 00:05:33,279 Speaker 6: stills in at the last Shane Lowry to half the 91 00:05:33,360 --> 00:05:39,120 Speaker 6: match against Russell Henley and the cup has retained. These 92 00:05:39,160 --> 00:05:41,479 Speaker 6: are the moments you remember, and he'll remember it for 93 00:05:41,520 --> 00:05:42,440 Speaker 6: the rest of his days. 94 00:05:43,600 --> 00:05:46,080 Speaker 2: So victory for the Europeans. The next Ryder Cup will 95 00:05:46,120 --> 00:05:48,599 Speaker 2: be held in Ireland in two years time. And those 96 00:05:48,640 --> 00:05:50,919 Speaker 2: are top stories for you this morning. Let's look at 97 00:05:50,960 --> 00:05:54,280 Speaker 2: the market's US and European stock futures are up this morning, 98 00:05:54,360 --> 00:05:57,640 Speaker 2: along with Asian equities largely. You've got the cospe hang 99 00:05:57,800 --> 00:06:02,320 Speaker 2: saying and the main benchmar in China or gaining this 100 00:06:02,440 --> 00:06:05,039 Speaker 2: as gold has hit another record. Hive also got the 101 00:06:05,080 --> 00:06:07,920 Speaker 2: Bloomberg Dollar Spot Index weakening by about a quarter of 102 00:06:07,960 --> 00:06:12,839 Speaker 2: one percent this morning. Crude all falling, with people familiar 103 00:06:12,880 --> 00:06:17,279 Speaker 2: saying that OPEC plus will weigh a November supply increase. 104 00:06:17,880 --> 00:06:21,159 Speaker 2: So looking at the bond markets this morning, tenny usls 105 00:06:21,200 --> 00:06:24,480 Speaker 2: down two basis points at full fifteen. Those are the markets. 106 00:06:24,720 --> 00:06:26,239 Speaker 1: In a moment, We'll bring you more from the Labor 107 00:06:26,240 --> 00:06:29,839 Speaker 1: Party conference, plus why France's richest people have plenty to 108 00:06:29,880 --> 00:06:33,400 Speaker 1: worry about in the upcoming budget. There but other story 109 00:06:33,400 --> 00:06:35,760 Speaker 1: that we've been reading this morning from arcolleague Howard Schway. 110 00:06:35,839 --> 00:06:39,040 Speaker 1: You one who's been writing about sleep debt, the subject 111 00:06:39,200 --> 00:06:42,240 Speaker 1: very close to our hearts, Caroline. This is essentially what 112 00:06:42,360 --> 00:06:45,279 Speaker 1: experts say is every time you come in under seven 113 00:06:45,320 --> 00:06:48,200 Speaker 1: to nine hours of sleep that's required to stay healthy 114 00:06:48,279 --> 00:06:51,479 Speaker 1: and sane. I quote, this is the debt that you 115 00:06:51,560 --> 00:06:55,240 Speaker 1: build up and then have to spend much longer recovering. 116 00:06:55,240 --> 00:06:57,320 Speaker 1: At one estimates that Howard quotes in his piece from 117 00:06:57,360 --> 00:06:59,200 Speaker 1: a hospital group in the US, as it could take 118 00:06:59,279 --> 00:07:02,440 Speaker 1: four days to cover from just one hour of sleep debt. 119 00:07:02,480 --> 00:07:04,480 Speaker 1: I'm not doing the mats on this, Caroline. It's been 120 00:07:04,640 --> 00:07:07,600 Speaker 1: about thirteen years I think that I've been in sleep deficit. 121 00:07:08,000 --> 00:07:10,320 Speaker 1: So the prospect of he long it'll take me to 122 00:07:10,320 --> 00:07:12,400 Speaker 1: do that, I think I'll see you in about twenty 123 00:07:12,440 --> 00:07:14,480 Speaker 1: fifty five for our next show. 124 00:07:15,000 --> 00:07:18,480 Speaker 2: Yeah, absolutely, my heart always thinks. And Howard writes about 125 00:07:18,520 --> 00:07:21,760 Speaker 2: sleep deficits. But it's husually important, isn't it, Just like 126 00:07:22,240 --> 00:07:26,400 Speaker 2: you know, eating and exercising, sleep is massively important. But 127 00:07:26,760 --> 00:07:28,720 Speaker 2: Howard also charts a little bit of the history of 128 00:07:28,760 --> 00:07:30,920 Speaker 2: his own life and how it came about, you know, 129 00:07:31,040 --> 00:07:34,000 Speaker 2: as an editors of writer being up all night, and 130 00:07:34,000 --> 00:07:37,640 Speaker 2: that it was those habits that even now as he's 131 00:07:37,840 --> 00:07:40,840 Speaker 2: i'll say it a little bit older now that those 132 00:07:40,880 --> 00:07:42,760 Speaker 2: habits have sort of stuck for him. 133 00:07:42,840 --> 00:07:47,040 Speaker 1: So yeah, look, I as you and anyone who's ever 134 00:07:47,080 --> 00:07:49,560 Speaker 1: met me will no I can talk for hours about 135 00:07:49,760 --> 00:07:53,520 Speaker 1: sleep hygiene. It becomes an obsession when you work the 136 00:07:53,600 --> 00:07:56,160 Speaker 1: sort of hours that we work for this as well. 137 00:07:56,320 --> 00:07:58,120 Speaker 1: But I really like Howard has a lot of practical 138 00:07:58,160 --> 00:08:00,520 Speaker 1: tips in this piece as well about how you can 139 00:08:00,560 --> 00:08:03,640 Speaker 1: basically act as if you are sleeping, which is a 140 00:08:03,640 --> 00:08:05,520 Speaker 1: good method to try and get yourself to sleep. I 141 00:08:05,560 --> 00:08:07,520 Speaker 1: will be trying that and I will report. 142 00:08:07,240 --> 00:08:08,840 Speaker 7: Back suns great. 143 00:08:09,720 --> 00:08:13,520 Speaker 2: Look, wonder whether there's any sleep deficit up in Liverpool. 144 00:08:13,600 --> 00:08:17,160 Speaker 2: Let's bring you more from our Labor from the Labor 145 00:08:17,200 --> 00:08:20,960 Speaker 2: Party conference that's taking place in Liverpool. Only fourteen months 146 00:08:20,960 --> 00:08:24,120 Speaker 2: into office, Prime Minister Kis Sarma and Chancellor Rachel Reeves 147 00:08:24,520 --> 00:08:29,200 Speaker 2: have significant challenges fiscally and with their popularity and interviews, 148 00:08:29,240 --> 00:08:33,280 Speaker 2: as the conference got underway, Sarma took on his biggest rival, 149 00:08:33,360 --> 00:08:37,959 Speaker 2: Nigel Farag's Reform UK Are. UK Politics reporter James Hawcock 150 00:08:38,000 --> 00:08:42,319 Speaker 2: joins us now from Liverpool. James, how crucial is this 151 00:08:42,440 --> 00:08:44,319 Speaker 2: conference for the Prime Minister. 152 00:08:45,160 --> 00:08:46,840 Speaker 7: I'll probably have some sleep debt after that. 153 00:08:47,360 --> 00:08:50,560 Speaker 8: Look, the Prime Minister goes into this conference as the 154 00:08:50,600 --> 00:08:54,440 Speaker 8: most unpopular prime minister on record according to IPSOS polling, 155 00:08:54,480 --> 00:08:57,520 Speaker 8: and with rivals outside of the party in Reform Pole 156 00:08:57,640 --> 00:09:00,360 Speaker 8: higher than him, and inside with the man to meet, 157 00:09:00,400 --> 00:09:03,240 Speaker 8: Andy Burnham, who said MPs have been telling him over 158 00:09:03,280 --> 00:09:06,240 Speaker 8: the summer he could do a better job. Look, I 159 00:09:06,280 --> 00:09:08,000 Speaker 8: was at a fringe event last night with the Mayor 160 00:09:08,040 --> 00:09:10,839 Speaker 8: of London seek Khan, where he said conference is a 161 00:09:10,840 --> 00:09:14,800 Speaker 8: window for the country to see what Labour actually stand for, 162 00:09:15,200 --> 00:09:17,520 Speaker 8: and he followed it up by thanking both delegates and 163 00:09:17,600 --> 00:09:21,160 Speaker 8: journals for coming, as well as spectators who love watching 164 00:09:21,280 --> 00:09:24,520 Speaker 8: blood sports. So that gives you a flavor of quite 165 00:09:24,559 --> 00:09:28,080 Speaker 8: how febrile the environment is here and Starmer and his 166 00:09:28,160 --> 00:09:30,680 Speaker 8: Chancellor Rachelbuthes have to set out what is a more 167 00:09:30,760 --> 00:09:33,400 Speaker 8: positive vision for their government going forward. 168 00:09:34,400 --> 00:09:38,280 Speaker 2: Yeah, and so in terms of what we're expecting from 169 00:09:38,320 --> 00:09:42,120 Speaker 2: the Chancellor today and her speech, it's a very far cry, 170 00:09:42,160 --> 00:09:45,600 Speaker 2: perhaps from how she was when she was Chancellor in waiting. 171 00:09:46,440 --> 00:09:48,280 Speaker 8: It's funny you say that, Carolyn, because there are a 172 00:09:48,320 --> 00:09:50,960 Speaker 8: remarkable number of similarities to last year. 173 00:09:51,480 --> 00:09:53,760 Speaker 7: We go in expecting a large. 174 00:09:53,400 --> 00:09:56,679 Speaker 8: Black hole the shortfalling government finances from both an OBR 175 00:09:56,840 --> 00:10:00,360 Speaker 8: downgrade there's been long feared might come, and also welfare 176 00:10:00,400 --> 00:10:02,559 Speaker 8: spending similar to last year where there were big fears 177 00:10:02,559 --> 00:10:06,360 Speaker 8: about Conservative overspend going into the budget. There are questions 178 00:10:06,400 --> 00:10:10,280 Speaker 8: about tax over whether Labour's manifesto from the election will hold, 179 00:10:10,800 --> 00:10:13,240 Speaker 8: and there are also big plans apparently later today for 180 00:10:13,280 --> 00:10:16,000 Speaker 8: the Chancellor to announce changes to youth unemployment to try 181 00:10:16,040 --> 00:10:18,560 Speaker 8: and get more people back into work to boost the 182 00:10:18,640 --> 00:10:22,600 Speaker 8: long term supply curve of the economy. So although much 183 00:10:22,640 --> 00:10:25,240 Speaker 8: has changed in terms of the sort of political outlook, 184 00:10:25,320 --> 00:10:27,840 Speaker 8: in many ways, the Chancellor still trying to do very 185 00:10:27,880 --> 00:10:30,800 Speaker 8: similar things to what she was doing last year. 186 00:10:31,320 --> 00:10:34,160 Speaker 7: The question is if she can pull it off. 187 00:10:35,440 --> 00:10:38,000 Speaker 1: That's the focus on the Chancellor today, James. But this, 188 00:10:38,200 --> 00:10:40,280 Speaker 1: as you've been laying out for us, is such a 189 00:10:40,320 --> 00:10:43,400 Speaker 1: big challenge for the Prime Minister now as well. He's 190 00:10:43,440 --> 00:10:46,880 Speaker 1: been criticized for not taking bold enough action on immigration 191 00:10:47,000 --> 00:10:51,120 Speaker 1: and the economy. He's spoken about reform UK and his 192 00:10:51,240 --> 00:10:53,640 Speaker 1: conversations running up to this event as well, and you've 193 00:10:53,640 --> 00:10:57,160 Speaker 1: also been speaking to some of those about the expectations 194 00:10:57,160 --> 00:10:59,480 Speaker 1: and the I suppose the bar that the Prime Minister 195 00:10:59,520 --> 00:11:00,679 Speaker 1: has to meet at this event. 196 00:11:01,600 --> 00:11:04,000 Speaker 8: The question all the journals here are asking, Stephen, is 197 00:11:04,000 --> 00:11:07,320 Speaker 8: is this a genuine moment of jeopardy for the prime minister? 198 00:11:07,440 --> 00:11:08,320 Speaker 7: Is his job at risk? 199 00:11:08,400 --> 00:11:11,080 Speaker 8: And that I talked to Nick Williams, a former Downstreet 200 00:11:11,080 --> 00:11:14,000 Speaker 8: advisor who helped write Labour's economic manifesto. 201 00:11:14,480 --> 00:11:17,000 Speaker 7: He says it's a tight spot for the leader and 202 00:11:17,040 --> 00:11:17,640 Speaker 7: the Chancellor. 203 00:11:18,000 --> 00:11:20,199 Speaker 8: It is definitely the case that Kier and Rachel go 204 00:11:20,240 --> 00:11:21,880 Speaker 8: into this conference with their sort of. 205 00:11:21,880 --> 00:11:22,640 Speaker 7: Backs against the wall. 206 00:11:22,800 --> 00:11:24,520 Speaker 8: But one thing I know about the two of them 207 00:11:24,559 --> 00:11:26,760 Speaker 8: is that when they're backs against their will against the wall, 208 00:11:26,760 --> 00:11:29,719 Speaker 8: their instinct is to come out swinging. Now, coming out 209 00:11:29,800 --> 00:11:35,080 Speaker 8: swinging in this case is calling reforms policies racist and 210 00:11:35,160 --> 00:11:37,480 Speaker 8: saying labor is in a fight for the soul of 211 00:11:37,520 --> 00:11:40,240 Speaker 8: the country. Those are comments from Keir Starmer over the weekend, 212 00:11:40,640 --> 00:11:43,520 Speaker 8: and they are introducing new policy to try and fix that. 213 00:11:43,559 --> 00:11:46,200 Speaker 8: The tackle immigration and the economy. Two of their areas 214 00:11:46,200 --> 00:11:49,320 Speaker 8: they're seen as weak ist one and that is ID cards. 215 00:11:49,320 --> 00:11:51,120 Speaker 8: And now this morning we're hearing there is going to 216 00:11:51,160 --> 00:11:54,720 Speaker 8: be new policies around stricter conditions if you're allowed to 217 00:11:54,800 --> 00:11:57,079 Speaker 8: settle in the UK as a foreign migrant. That's including 218 00:11:57,120 --> 00:12:01,400 Speaker 8: having a clean criminal record, paying tax, not being on benefits, 219 00:12:01,400 --> 00:12:04,120 Speaker 8: and having a highest standard of English before you can 220 00:12:04,160 --> 00:12:06,600 Speaker 8: be considered to resettle in the country. 221 00:12:07,600 --> 00:12:10,800 Speaker 2: Yeah, it's an interesting one, isn't it. The Prime Minister 222 00:12:11,720 --> 00:12:15,040 Speaker 2: effectively calling it a kind of fight for the nation's soul. 223 00:12:15,559 --> 00:12:17,280 Speaker 2: Thank you so much for being with us. That is 224 00:12:17,280 --> 00:12:20,600 Speaker 2: Bloomberg's James Wilcock, who is at the Labour Party conference 225 00:12:20,760 --> 00:12:26,280 Speaker 2: in Liverpool. Stay with us more from Bloomberg daybaqube coming 226 00:12:26,360 --> 00:12:27,040 Speaker 2: up after this. 227 00:12:28,520 --> 00:12:31,040 Speaker 1: France's new Prime minister is under pressure from the left, 228 00:12:31,200 --> 00:12:34,200 Speaker 1: the extreme right, and even his own centrist allies to 229 00:12:34,240 --> 00:12:38,760 Speaker 1: extract more tax from the country's wealthiest residents. Sebastian laklu 230 00:12:38,880 --> 00:12:41,960 Speaker 1: is facing difficult decisions as he prepares his twenty twenty 231 00:12:42,000 --> 00:12:45,400 Speaker 1: six budget that aims to cut the largest deficit in 232 00:12:45,440 --> 00:12:49,400 Speaker 1: the euro Area. Bloomberg's Tara Patel covers Wealth for Bloomberg 233 00:12:49,520 --> 00:12:52,520 Speaker 1: from Paris. She joins us now for more. Tara, good morning. 234 00:12:52,679 --> 00:12:56,400 Speaker 1: What are then the proposals being considered by the Prime minister? 235 00:12:56,760 --> 00:13:00,160 Speaker 9: The proposals on the table and off the table on 236 00:13:00,280 --> 00:13:05,280 Speaker 9: a very very wide gamut. They're ranging from an extremely 237 00:13:05,480 --> 00:13:11,280 Speaker 9: broad proposal named for an economist called Gabriel Zuckman. This 238 00:13:11,400 --> 00:13:14,200 Speaker 9: is from the Socialist Party and it would it would 239 00:13:14,280 --> 00:13:19,319 Speaker 9: tax basically all personal assets of somebody who has more 240 00:13:19,360 --> 00:13:25,439 Speaker 9: than one hundred million. Two very very very targeted proposals 241 00:13:25,480 --> 00:13:29,560 Speaker 9: that would for instance, put holding companies on the table 242 00:13:30,240 --> 00:13:35,600 Speaker 9: or maybe maybe take away certain tax niches to avoid 243 00:13:35,679 --> 00:13:41,800 Speaker 9: what many critics have called over optimization of taxes. I 244 00:13:41,840 --> 00:13:45,040 Speaker 9: think what we know, we've had a little bit more 245 00:13:45,080 --> 00:13:49,240 Speaker 9: clarity about what the Prime minister is thinking this time. 246 00:13:50,000 --> 00:13:52,080 Speaker 9: Two days ago he came out and said that he 247 00:13:52,360 --> 00:13:55,760 Speaker 9: really is not in favor. He's he's definitely against a 248 00:13:55,840 --> 00:14:01,120 Speaker 9: very broad based wealth tax for France, which has tried before, 249 00:14:02,000 --> 00:14:08,360 Speaker 9: but he is willing to consider perhaps more targeted measures. 250 00:14:08,760 --> 00:14:11,560 Speaker 2: Yeah, as you say, frans has tried wealth taxes in 251 00:14:11,600 --> 00:14:15,000 Speaker 2: the past, Can they work this time or how do 252 00:14:15,120 --> 00:14:19,360 Speaker 2: proponents say that they would be more effective this time around. 253 00:14:20,000 --> 00:14:21,600 Speaker 10: Well, it's very difficult to say. 254 00:14:22,240 --> 00:14:24,600 Speaker 9: You know, I think people who are backing this kind 255 00:14:24,680 --> 00:14:28,520 Speaker 9: of wealth tax, it's it's really coming from from the 256 00:14:28,640 --> 00:14:30,960 Speaker 9: left more than anything else. So that's why it really 257 00:14:31,000 --> 00:14:34,880 Speaker 9: does hark back to Francois Mitterrent when he first came 258 00:14:34,920 --> 00:14:38,840 Speaker 9: into power. He was the first socialist president post war 259 00:14:38,960 --> 00:14:41,960 Speaker 9: for France, and really one of the one of the 260 00:14:41,960 --> 00:14:45,360 Speaker 9: reasons he won was because he came came in promising 261 00:14:45,480 --> 00:14:48,760 Speaker 9: that he would he would he would make the rich 262 00:14:49,440 --> 00:14:52,400 Speaker 9: pay more. And and this debate that's going on now 263 00:14:52,480 --> 00:14:57,120 Speaker 9: that really started last year during the election campaign, has 264 00:14:57,720 --> 00:15:01,600 Speaker 9: come on fast and furiously, and I think that the 265 00:15:01,640 --> 00:15:06,480 Speaker 9: Socialist Party again has really latched onto this issue as 266 00:15:06,520 --> 00:15:09,480 Speaker 9: something that can bring people into the streets and speaks 267 00:15:09,520 --> 00:15:15,440 Speaker 9: to a very broad swath of France's population. Can they 268 00:15:15,480 --> 00:15:19,560 Speaker 9: work this time? I think, like any policy, it depends 269 00:15:19,640 --> 00:15:23,480 Speaker 9: on the way that the government tries to put it 270 00:15:23,520 --> 00:15:26,000 Speaker 9: in place, if that's what they think they need to do. 271 00:15:27,280 --> 00:15:31,840 Speaker 9: We've all seen in the UK in particular, when the 272 00:15:31,920 --> 00:15:34,280 Speaker 9: non don for instance, measures. 273 00:15:35,320 --> 00:15:36,720 Speaker 10: Are starting to be whittled away. 274 00:15:37,080 --> 00:15:40,400 Speaker 9: The ultra rich are a very very mobile population and 275 00:15:40,440 --> 00:15:42,920 Speaker 9: if there's a particular tax that comes in that they 276 00:15:42,920 --> 00:15:45,760 Speaker 9: don't like, well it's very very easy just to pick 277 00:15:45,840 --> 00:15:49,160 Speaker 9: up and to go to and find places where the 278 00:15:49,240 --> 00:15:53,640 Speaker 9: tax situation may be a little bit more favorable to people. 279 00:15:54,040 --> 00:15:57,280 Speaker 9: So I think in France's case, it's really going to 280 00:15:57,360 --> 00:16:00,920 Speaker 9: depend on the degree of taxi and the types of 281 00:16:01,000 --> 00:16:04,120 Speaker 9: measures that the government implements. 282 00:16:04,200 --> 00:16:05,760 Speaker 10: If that's where it is heading. 283 00:16:06,160 --> 00:16:09,760 Speaker 1: Tara does Sebastian Lecon, who actually have any choice in 284 00:16:09,800 --> 00:16:13,320 Speaker 1: this matter? Given the fractured political landscape and the difficulty 285 00:16:13,360 --> 00:16:15,760 Speaker 1: he's going to have to build support for a budget. 286 00:16:15,880 --> 00:16:19,240 Speaker 1: Is he going to have to do something to I suppose, 287 00:16:19,320 --> 00:16:21,440 Speaker 1: appeal to those who support these measures. 288 00:16:21,800 --> 00:16:24,200 Speaker 10: Well, I think he's going to have to do something. 289 00:16:24,280 --> 00:16:24,880 Speaker 10: I think. 290 00:16:26,720 --> 00:16:31,040 Speaker 9: The path he's trying to carve out to remain to 291 00:16:31,720 --> 00:16:35,720 Speaker 9: basically survive. He's the fifth prime minister in less than 292 00:16:35,720 --> 00:16:40,960 Speaker 9: two years. He needs support from the Socialist Party or 293 00:16:41,000 --> 00:16:44,840 Speaker 9: he needs TACIT support at least an agreement with the 294 00:16:45,720 --> 00:16:50,360 Speaker 9: extreme right, with Marine Lapenn's National Rally that they won't 295 00:16:50,400 --> 00:16:53,560 Speaker 9: support a no confidence vote. And I think that this 296 00:16:53,680 --> 00:16:55,720 Speaker 9: wealth tax has taken on sort of. 297 00:16:55,680 --> 00:16:56,640 Speaker 10: A life of its own. 298 00:16:56,680 --> 00:16:59,760 Speaker 9: It's been all consuming, It's brought people onto the streets. 299 00:17:00,360 --> 00:17:02,960 Speaker 9: It's you know, you listen to any talk show at 300 00:17:02,960 --> 00:17:05,520 Speaker 9: any time of day now and it's talking that the 301 00:17:05,560 --> 00:17:10,040 Speaker 9: topics of conversation are in you know, well, inequality and 302 00:17:11,320 --> 00:17:14,600 Speaker 9: you know who's going to pay France. What isn't going 303 00:17:14,640 --> 00:17:18,840 Speaker 9: to go away is that France has the biggest deficit 304 00:17:18,920 --> 00:17:21,199 Speaker 9: in the euro Area now and I think that the 305 00:17:21,240 --> 00:17:26,800 Speaker 9: markets are have really put France on on alert, and 306 00:17:27,560 --> 00:17:31,320 Speaker 9: I think Sebastian luquanu Is is going to have to 307 00:17:31,320 --> 00:17:33,960 Speaker 9: do something. France needs a budget for twenty twenty six, 308 00:17:34,520 --> 00:17:38,800 Speaker 9: and perhaps one of the answers might be to choose 309 00:17:39,000 --> 00:17:43,320 Speaker 9: some kind of tax that is going to affect the wealthy, 310 00:17:44,000 --> 00:17:46,800 Speaker 9: the ultra rich, but perhaps also the less rich the 311 00:17:46,880 --> 00:17:50,640 Speaker 9: millionaire set, and maybe that way he can he can 312 00:17:50,720 --> 00:17:54,720 Speaker 9: find a way to move forward and actually name a government, 313 00:17:54,720 --> 00:17:57,000 Speaker 9: because for the moment, Franz has a prime minister, but 314 00:17:57,080 --> 00:17:58,639 Speaker 9: doesn't have a finance minister. 315 00:17:58,920 --> 00:18:00,200 Speaker 10: He doesn't have a cabin. 316 00:18:02,080 --> 00:18:04,840 Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the 317 00:18:04,880 --> 00:18:07,960 Speaker 1: stories making news from London to Wall Street and beyond. 318 00:18:08,280 --> 00:18:12,240 Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify, 319 00:18:12,359 --> 00:18:14,400 Speaker 2: and anywhere else you get your podcasts. 320 00:18:14,440 --> 00:18:17,520 Speaker 1: You can also listen live each morning on London Dab Radio, 321 00:18:17,560 --> 00:18:20,240 Speaker 1: the Bloomberg Business app, and Bloomberg dot Com. 322 00:18:20,280 --> 00:18:23,040 Speaker 2: Our flagship New York station is also available on your 323 00:18:23,080 --> 00:18:27,800 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 324 00:18:28,040 --> 00:18:29,320 Speaker 2: I'm Caroline Hepka and. 325 00:18:29,280 --> 00:18:31,920 Speaker 1: I'm Stephen Carroll. Join us again tomorrow morning for all 326 00:18:31,960 --> 00:18:34,360 Speaker 1: the news you need to start your day right here 327 00:18:34,400 --> 00:18:39,320 Speaker 1: on Bloomberg Daybreak Europe.