1 00:00:02,680 --> 00:00:05,280 Speaker 1: Good morning. It's Tuesday, the twenty ninth of August here 2 00:00:05,280 --> 00:00:08,039 Speaker 1: in London. This is the BlueBag Daybreak at podcast. I'm 3 00:00:08,080 --> 00:00:09,200 Speaker 1: Caroline Hipki and. 4 00:00:09,160 --> 00:00:12,760 Speaker 2: I'm Stephen Carroll. Coming up today, Economists trim their China 5 00:00:12,880 --> 00:00:15,320 Speaker 2: growth forecast as concerns mount. 6 00:00:15,320 --> 00:00:20,239 Speaker 1: More volatility in European natural gas prices as Australian LNG 7 00:00:20,480 --> 00:00:22,799 Speaker 1: workers moved closer to strike action. 8 00:00:22,960 --> 00:00:26,720 Speaker 2: And Citadel's Fortress of Maths grads how the Hedge Fund 9 00:00:26,800 --> 00:00:31,080 Speaker 2: is sorting applicants for high paying internships from sixty nine 10 00:00:31,280 --> 00:00:32,519 Speaker 2: thousand hopefuls. 11 00:00:32,880 --> 00:00:35,040 Speaker 1: Let's start with a round up of our top stories. 12 00:00:36,320 --> 00:00:39,960 Speaker 2: The outlook for China's economy is showing few signs of improvement. 13 00:00:40,080 --> 00:00:43,440 Speaker 2: A Bloomberg survey reveals economists now expect GDP growth of 14 00:00:43,520 --> 00:00:47,760 Speaker 2: five point one percent this year. That's down on earlier projections, 15 00:00:47,760 --> 00:00:51,720 Speaker 2: but still a whisker above Beijing's all important five percent target. 16 00:00:52,120 --> 00:00:56,120 Speaker 2: Alian's Global Investors Senior as OR Pacific economist Christian Tontono 17 00:00:56,240 --> 00:00:59,760 Speaker 2: says the slowdown shouldn't lead to panic in the markets. 18 00:01:00,240 --> 00:01:02,560 Speaker 3: Like to be probably weaker than what we expect and 19 00:01:02,640 --> 00:01:06,440 Speaker 3: deco with volatility and growth momentum, but the economy the 20 00:01:06,520 --> 00:01:10,119 Speaker 3: driver growth model is changing and the government is likely 21 00:01:10,160 --> 00:01:13,959 Speaker 3: to still provide the support that's needed to upholds your growth, 22 00:01:14,000 --> 00:01:15,920 Speaker 3: So let's not be panic about it. 23 00:01:16,680 --> 00:01:20,080 Speaker 2: Christian Tantano's called for CAM comes as investors weigh the 24 00:01:20,120 --> 00:01:24,520 Speaker 2: country's struggling recovery against Beijing's efforts to boost sentiment without 25 00:01:24,640 --> 00:01:25,720 Speaker 2: major stimulus. 26 00:01:26,400 --> 00:01:30,440 Speaker 1: Gas prices have surged in Europe as Chevron received notice 27 00:01:30,480 --> 00:01:34,360 Speaker 1: of impending industrial action In Australia, workers at two of 28 00:01:34,360 --> 00:01:37,399 Speaker 1: the company's LNG plants will go on strike from the 29 00:01:37,440 --> 00:01:40,840 Speaker 1: seventh of September, at a time when global supplies are 30 00:01:40,880 --> 00:01:44,800 Speaker 1: already squeezed. Benchmark futures rose as much as ten percent 31 00:01:44,920 --> 00:01:45,800 Speaker 1: following the news. 32 00:01:46,120 --> 00:01:48,920 Speaker 2: Goldman's Access struck a deal to sell United Capital and 33 00:01:49,000 --> 00:01:52,720 Speaker 2: investment advisory business that was aimed at the mass affluent market. 34 00:01:53,160 --> 00:01:56,480 Speaker 2: The sale to Creative Planning for an undisclosed sum offsloads 35 00:01:56,480 --> 00:02:00,480 Speaker 2: the business after just four years and signals Goldman intention 36 00:02:00,680 --> 00:02:04,120 Speaker 2: to refocus on the ultra rich. United Capital had about 37 00:02:04,160 --> 00:02:06,760 Speaker 2: twenty two thousand clients with a little over one million 38 00:02:06,800 --> 00:02:09,919 Speaker 2: dollars invested when Goldman bought the firm in twenty nineteen. 39 00:02:10,200 --> 00:02:13,160 Speaker 2: That's significantly less than Goldman's typical clients. 40 00:02:13,880 --> 00:02:17,720 Speaker 1: Ukrainian forces say that they've pierced the first line of 41 00:02:17,800 --> 00:02:20,840 Speaker 1: Russian defenses in the southeast of the country and are 42 00:02:20,840 --> 00:02:25,120 Speaker 1: now fighting to widen their foothold. According to the Defense Minister, 43 00:02:25,240 --> 00:02:29,000 Speaker 1: soldiers are advancing in the southern Zaparisia region, some one 44 00:02:29,040 --> 00:02:32,320 Speaker 1: hundred kilometers north of the Sea of Asov. The breakthrough 45 00:02:32,360 --> 00:02:36,000 Speaker 1: comes as French President immanue and Makhol called for closer 46 00:02:36,040 --> 00:02:40,239 Speaker 1: European ties to counter the threat from Russia and elsewhere. 47 00:02:41,080 --> 00:02:41,320 Speaker 1: Thank you. 48 00:02:43,000 --> 00:02:45,239 Speaker 4: We know that there will be a before and and 49 00:02:45,360 --> 00:02:48,080 Speaker 4: after in the war in Ukraine. It seems to me 50 00:02:48,240 --> 00:02:51,600 Speaker 4: essential to integrate the consequences of this war into our 51 00:02:51,639 --> 00:02:55,120 Speaker 4: diplomatic action in order to prepare for lasting peace. The 52 00:02:55,160 --> 00:02:58,320 Speaker 4: post war period in Ukraine will have to translate into 53 00:02:58,400 --> 00:03:02,360 Speaker 4: new treaties to regulate weapons all types of military activities 54 00:03:02,360 --> 00:03:05,280 Speaker 4: that affect Europe. And we must have the will to 55 00:03:05,320 --> 00:03:09,440 Speaker 4: be the designer and signatory of these new treaties tomorrow. 56 00:03:11,600 --> 00:03:14,640 Speaker 1: The French president there via a translator. He was speaking 57 00:03:14,680 --> 00:03:19,200 Speaker 1: at the annual Ambassador's Conference in Paris, laying out his 58 00:03:19,320 --> 00:03:21,560 Speaker 1: priorities for French foreign. 59 00:03:21,200 --> 00:03:26,000 Speaker 2: Policy drivers in London face a potential new charge from Today, 60 00:03:26,040 --> 00:03:28,760 Speaker 2: the Ultra Low Emission Zone expands to cover all of 61 00:03:28,800 --> 00:03:32,280 Speaker 2: the capital, meaning heavy polluting older vehicles now incur a 62 00:03:32,400 --> 00:03:36,000 Speaker 2: daily fee of twelve pounds fifty. Clean Air London Director 63 00:03:36,080 --> 00:03:39,840 Speaker 2: Simon Burkett says Labor mayor City Can deserves praise for 64 00:03:39,880 --> 00:03:40,720 Speaker 2: the measure. 65 00:03:41,440 --> 00:03:44,200 Speaker 5: And I think the mayor deserves credit for sticking with 66 00:03:44,240 --> 00:03:47,840 Speaker 5: this policy. It is an important public health policy and 67 00:03:47,880 --> 00:03:51,680 Speaker 5: I think it's really worth remembering that air pollution is 68 00:03:51,720 --> 00:03:55,680 Speaker 5: one of the greatest environmental health risks and that's what 69 00:03:55,720 --> 00:03:58,880 Speaker 5: the mayor has made a personal priority. 70 00:04:00,160 --> 00:04:02,560 Speaker 2: Burkett has campaigned on the issue of clean air since 71 00:04:02,560 --> 00:04:04,520 Speaker 2: the early two thousands, when London had some of the 72 00:04:04,560 --> 00:04:08,120 Speaker 2: worst air pollution of any major global city. The change 73 00:04:08,160 --> 00:04:11,080 Speaker 2: in this policy in the expansion of the ULS zone 74 00:04:11,160 --> 00:04:14,240 Speaker 2: has been widely blamed for the Labor Party not winning 75 00:04:14,280 --> 00:04:16,880 Speaker 2: a key by election in Uxbridge earlier this year. 76 00:04:17,800 --> 00:04:20,960 Speaker 1: Britain's shot price inflation slowed in August to its lowest 77 00:04:21,040 --> 00:04:23,520 Speaker 1: level in almost a year, relieving pressure on the Bank 78 00:04:23,560 --> 00:04:26,440 Speaker 1: of England to keep raising interest rates. The British Retail 79 00:04:26,440 --> 00:04:30,600 Speaker 1: Consortium reported shot price inflation fell sharply from seven point 80 00:04:30,640 --> 00:04:33,680 Speaker 1: six percent in July to six point nine percent in August, 81 00:04:33,960 --> 00:04:37,840 Speaker 1: thanks mainly to food products, but prices are still rising 82 00:04:37,960 --> 00:04:41,000 Speaker 1: much more rapidly than the Bank of England's two percent target. 83 00:04:41,560 --> 00:04:44,200 Speaker 1: Markets expect the bank to push ahead with two more 84 00:04:44,240 --> 00:04:47,760 Speaker 1: rate hikes, including a quarter point increase in September. 85 00:04:48,320 --> 00:04:51,040 Speaker 2: Ken Griffin Citadel is going all out in the battle 86 00:04:51,040 --> 00:04:54,800 Speaker 2: for the world's brightest mathematical minds. Our reporting found that 87 00:04:54,839 --> 00:04:58,440 Speaker 2: while tens of thousands apply for the Hedge Funds Summer Internship, 88 00:04:58,560 --> 00:05:02,239 Speaker 2: only a few are chosen. Bloomberg's Asia Investing reporter Lulu 89 00:05:02,320 --> 00:05:04,320 Speaker 2: Chen says competition is fierce. 90 00:05:04,600 --> 00:05:08,000 Speaker 6: Out of the sixty nine thousand INTERNT applications this year, 91 00:05:08,120 --> 00:05:10,599 Speaker 6: fewer than one percent actually made it cut to the 92 00:05:10,640 --> 00:05:16,080 Speaker 6: program almost without exception. These students boast titles and degrees 93 00:05:16,200 --> 00:05:20,719 Speaker 6: from top schools in their regions, many holding math and 94 00:05:20,760 --> 00:05:26,200 Speaker 6: computer science degrees. Some actually have Math OLYMPIAD Gold titles 95 00:05:26,279 --> 00:05:27,039 Speaker 6: under their belt. 96 00:05:28,520 --> 00:05:31,120 Speaker 2: Lulu Chen says those who secure a place can expect 97 00:05:31,120 --> 00:05:34,400 Speaker 2: to be well compensated, earning close to twenty thousand dollars 98 00:05:34,480 --> 00:05:38,039 Speaker 2: a month as interns Caroline. One of the stories that 99 00:05:38,040 --> 00:05:41,039 Speaker 2: caught my eye this morning from Bloomberg companion Sarah Carmichael 100 00:05:41,120 --> 00:05:44,680 Speaker 2: looking at another aspect of the return to office story, 101 00:05:44,720 --> 00:05:48,200 Speaker 2: but also how this could create problems for couples. And 102 00:05:48,279 --> 00:05:50,040 Speaker 2: this is because of the way that people have sort 103 00:05:50,080 --> 00:05:53,080 Speaker 2: of reorganized their lives around the idea that perhaps you 104 00:05:53,080 --> 00:05:55,640 Speaker 2: know one and this is I think particularly reference to 105 00:05:56,279 --> 00:05:59,359 Speaker 2: parents as well, one parent in the office, one parent 106 00:05:59,480 --> 00:06:03,160 Speaker 2: at home, and how more complicated things get, whereas companies 107 00:06:03,200 --> 00:06:04,679 Speaker 2: want more people to go back to the office. 108 00:06:04,760 --> 00:06:08,080 Speaker 1: Yeah, absolutely is sort of the two career couple, I 109 00:06:08,120 --> 00:06:11,280 Speaker 1: think is the issue. I think that the most interesting 110 00:06:11,839 --> 00:06:14,120 Speaker 1: issue is that there was a big advance, of course 111 00:06:14,240 --> 00:06:16,279 Speaker 1: with work from home, with the idea that you could 112 00:06:16,360 --> 00:06:20,720 Speaker 1: balance you know, perhaps commitments around the home with your 113 00:06:20,760 --> 00:06:23,279 Speaker 1: working life, and that that is now sort of much 114 00:06:23,320 --> 00:06:25,560 Speaker 1: more under threat. But I think the really interesting bit 115 00:06:25,640 --> 00:06:27,480 Speaker 1: is that Sarah actually looks at the data and a 116 00:06:27,480 --> 00:06:30,520 Speaker 1: lot of the research that has been done and that 117 00:06:30,640 --> 00:06:35,320 Speaker 1: men are more likely to be punished explicitly for looking 118 00:06:35,360 --> 00:06:37,800 Speaker 1: for work life balance, at least in the data that 119 00:06:37,839 --> 00:06:40,960 Speaker 1: she sort of surveyed, especially one report out of Australia, 120 00:06:41,040 --> 00:06:43,200 Speaker 1: that if they ask for it, they are more likely 121 00:06:43,240 --> 00:06:46,279 Speaker 1: to face more difficult consequences. So you're basically saying that 122 00:06:46,320 --> 00:06:49,000 Speaker 1: the progress made during the pandemic may be rolled back. 123 00:06:49,240 --> 00:06:51,520 Speaker 2: Yeah, And also looking at the evolution of how much 124 00:06:51,560 --> 00:06:55,120 Speaker 2: people are working from home in general. According to the data, 125 00:06:55,120 --> 00:06:57,640 Speaker 2: women have been slower to return to the office than men, 126 00:06:57,880 --> 00:06:59,719 Speaker 2: with forty one percent saying they work from home at 127 00:06:59,760 --> 00:07:02,400 Speaker 2: least of the time last year, and over the same 128 00:07:02,920 --> 00:07:05,680 Speaker 2: period in twenty twenty two, the number of men or 129 00:07:05,720 --> 00:07:07,960 Speaker 2: the rate of men working from home dropped by seven 130 00:07:07,960 --> 00:07:10,760 Speaker 2: percentage points, So perhaps a faster return to office there 131 00:07:10,800 --> 00:07:13,080 Speaker 2: as well. Of course, this is an evolving situation, something 132 00:07:13,080 --> 00:07:14,880 Speaker 2: that we talk about very regularly on the programs. Companies 133 00:07:14,880 --> 00:07:17,080 Speaker 2: try to figure out the best policies for them and 134 00:07:17,120 --> 00:07:17,760 Speaker 2: for their employees. 135 00:07:17,800 --> 00:07:20,080 Speaker 1: And I just spent a few days in the United 136 00:07:20,160 --> 00:07:22,440 Speaker 1: States and speaking to some friends there, thought was very 137 00:07:22,440 --> 00:07:25,480 Speaker 1: interesting that in the US, you know, returned to office 138 00:07:25,440 --> 00:07:28,440 Speaker 1: is actually even less popular than I think, you know, 139 00:07:28,520 --> 00:07:31,240 Speaker 1: against straw Poll's study of just people I happen to know, 140 00:07:31,560 --> 00:07:34,160 Speaker 1: but it seems even less popular in the US, you know, 141 00:07:34,240 --> 00:07:37,800 Speaker 1: much wider spaces, larger spaces, and people wanting to stay 142 00:07:37,880 --> 00:07:39,920 Speaker 1: you know, out of the office in a lot of 143 00:07:39,960 --> 00:07:42,240 Speaker 1: cases and being more efficient out of office. 144 00:07:42,360 --> 00:07:44,320 Speaker 2: Yeah, definitely, we'll be something we'll be coming back to 145 00:07:44,600 --> 00:07:46,560 Speaker 2: more on the program. Let's turn now, though, to the 146 00:07:46,680 --> 00:07:49,520 Speaker 2: US Commerce Secretary Gina Raimondo's trip to Beijing. She's been 147 00:07:49,560 --> 00:07:53,120 Speaker 2: emphasizing trade and transparency can serve as a foundation for 148 00:07:53,200 --> 00:07:56,360 Speaker 2: better ties between the two countries. Bloomberg senior reporter in Beijing. 149 00:07:56,480 --> 00:07:59,480 Speaker 2: James Mager joins US Now to tell us more. James, 150 00:07:59,520 --> 00:08:02,320 Speaker 2: great to have you with US. Gina Raimondo trying to 151 00:08:02,360 --> 00:08:05,520 Speaker 2: separate trade and national security. Is that a change in 152 00:08:05,600 --> 00:08:06,600 Speaker 2: tone from the US. 153 00:08:08,520 --> 00:08:10,240 Speaker 7: I don't think it's a huge change in tone. I 154 00:08:10,280 --> 00:08:13,040 Speaker 7: think she's really emphasizing that because that's her. You know, 155 00:08:13,120 --> 00:08:16,480 Speaker 7: she has both a characteristic role or your mandate, if 156 00:08:16,480 --> 00:08:19,240 Speaker 7: you want to put it in less violent terms. She 157 00:08:19,320 --> 00:08:21,200 Speaker 7: has to promote US trade and that's part of her 158 00:08:21,240 --> 00:08:23,840 Speaker 7: job as Common Secretary, and she says she also has 159 00:08:23,880 --> 00:08:27,520 Speaker 7: to protect national security by not allowing American companies to 160 00:08:27,560 --> 00:08:30,840 Speaker 7: export the things that America thinks will damage its own 161 00:08:30,880 --> 00:08:33,760 Speaker 7: national security. And so I think she's really emphasizing that 162 00:08:34,080 --> 00:08:36,199 Speaker 7: that kind of discussion. But you did see, I mean 163 00:08:36,240 --> 00:08:38,240 Speaker 7: you did see Janet Yellen saying when she was here 164 00:08:38,440 --> 00:08:40,559 Speaker 7: a couple of weeks ago that the vast majority of 165 00:08:40,640 --> 00:08:43,720 Speaker 7: US trade with China is completely benign and there's absolutely 166 00:08:43,760 --> 00:08:46,960 Speaker 7: no controversy about that at all. And Jenny Rimindo is 167 00:08:46,960 --> 00:08:49,400 Speaker 7: now emphasizing that point and just saying, you know, on 168 00:08:49,760 --> 00:08:53,439 Speaker 7: the vast majority of commercial and investment and trade ties 169 00:08:53,480 --> 00:08:56,959 Speaker 7: between the world's two bigouset economies, there is no one 170 00:08:57,200 --> 00:08:58,440 Speaker 7: raising any kind of problem. 171 00:08:58,440 --> 00:08:58,600 Speaker 3: Word. 172 00:08:58,600 --> 00:09:00,880 Speaker 7: There's very few people raising a current problem at all. 173 00:09:01,000 --> 00:09:01,760 Speaker 4: There are some people in. 174 00:09:01,679 --> 00:09:04,120 Speaker 7: The US who who obviously would like to decouple completely 175 00:09:04,120 --> 00:09:08,000 Speaker 7: from China's economy, but you know that's it's effectively impossible. 176 00:09:08,280 --> 00:09:10,520 Speaker 7: And uh, and she's here making the point that you know, 177 00:09:10,720 --> 00:09:13,280 Speaker 7: on the vast majority of ties, uh, you know, the 178 00:09:13,360 --> 00:09:16,120 Speaker 7: US business community here says the same. Most things are 179 00:09:16,160 --> 00:09:20,640 Speaker 7: very very uncontroversial. I mean, obviously there is a difficulty 180 00:09:20,679 --> 00:09:23,080 Speaker 7: in that they're unco controversial, and so there is no 181 00:09:23,120 --> 00:09:25,880 Speaker 7: problem between China and the US on many of these things. Uh, 182 00:09:26,200 --> 00:09:28,800 Speaker 7: the China doesn't have a problem really with buying US soybeans. 183 00:09:28,800 --> 00:09:30,960 Speaker 7: There's not a national security is there. It's in the 184 00:09:31,000 --> 00:09:34,120 Speaker 7: areas that are the problems that is, you know, is 185 00:09:34,120 --> 00:09:37,320 Speaker 7: some of the causes of the tensions between the two countries. 186 00:09:38,200 --> 00:09:40,240 Speaker 7: And she's been very clear that she's not here to 187 00:09:40,280 --> 00:09:43,120 Speaker 7: negotiate on anything to relate to national security, and she's 188 00:09:43,120 --> 00:09:45,800 Speaker 7: not here to compromise. She says, she's not compromise anything 189 00:09:45,800 --> 00:09:48,560 Speaker 7: to national security, and China is very much similar. Like 190 00:09:48,640 --> 00:09:50,440 Speaker 7: you know, they say, these are the areas that we 191 00:09:50,480 --> 00:09:53,000 Speaker 7: think are critical for national security, and we're not willing 192 00:09:53,040 --> 00:09:55,280 Speaker 7: to do the to negotiate or compromise on those either. 193 00:09:55,480 --> 00:09:59,120 Speaker 7: So on the big issues, there's actually I mean, at 194 00:09:59,200 --> 00:10:01,920 Speaker 7: least from how people talk about it, how she's talking about, 195 00:10:02,000 --> 00:10:04,120 Speaker 7: how the Chinese talked about in the past, there's very 196 00:10:04,120 --> 00:10:06,560 Speaker 7: little discussion going on, and I guess a lot of 197 00:10:06,559 --> 00:10:08,920 Speaker 7: the discussion is a very about sort of the gray 198 00:10:08,960 --> 00:10:11,960 Speaker 7: area between most of the stuff that's fine and the 199 00:10:12,000 --> 00:10:15,400 Speaker 7: little bit of stuff that's totally not fine. But yeah, yeah, 200 00:10:15,400 --> 00:10:17,520 Speaker 7: it does seem to be a very difficult position for her. 201 00:10:18,040 --> 00:10:20,719 Speaker 1: Yeah, and that that is, you know, a source of 202 00:10:20,800 --> 00:10:23,760 Speaker 1: kind of a lot of tension and difficulty. But in 203 00:10:23,800 --> 00:10:26,520 Speaker 1: the big picture, how would you assess then the US 204 00:10:26,679 --> 00:10:30,320 Speaker 1: China relationship currently Because Raymondo is only the latest of 205 00:10:30,360 --> 00:10:34,120 Speaker 1: a number of very high profile Biden administration figures to 206 00:10:34,240 --> 00:10:36,920 Speaker 1: visit China right. 207 00:10:37,480 --> 00:10:39,839 Speaker 7: Including the CIA director who came on a Secret Mission 208 00:10:39,880 --> 00:10:42,840 Speaker 7: a few months ago. There's been five cabinet level officials 209 00:10:42,880 --> 00:10:45,800 Speaker 7: from the US that have come recently, and I think 210 00:10:45,840 --> 00:10:49,880 Speaker 7: part of that is just China's You're opening gradually to 211 00:10:49,880 --> 00:10:51,560 Speaker 7: the rest of the world after the COVID lockdowns, like 212 00:10:51,600 --> 00:10:54,720 Speaker 7: no one came for years, you basically can't come for 213 00:10:54,800 --> 00:10:57,000 Speaker 7: three years, and so people are now there's a lot 214 00:10:57,000 --> 00:10:59,400 Speaker 7: of pent up kind of demand to go to China 215 00:10:59,440 --> 00:11:02,720 Speaker 7: from from people around the world, not just cabinet officials. 216 00:11:03,240 --> 00:11:06,280 Speaker 7: So part of that this sort of group of people 217 00:11:06,360 --> 00:11:09,000 Speaker 7: you're seeing is partly that. It's also partly the you know, 218 00:11:09,040 --> 00:11:13,040 Speaker 7: the Biden administration and I think the government of China 219 00:11:13,360 --> 00:11:16,760 Speaker 7: are trying to do something to better tize. There is 220 00:11:16,800 --> 00:11:20,360 Speaker 7: an attempt to improve relations when they can, and I 221 00:11:20,360 --> 00:11:22,240 Speaker 7: think there's a couple of reasons for that. One President's 222 00:11:22,320 --> 00:11:24,360 Speaker 7: Union paying is meant to be going to Apex in 223 00:11:24,480 --> 00:11:27,079 Speaker 7: the US later this year, and if the two nations 224 00:11:27,080 --> 00:11:29,040 Speaker 7: are sniping at each other, if the two nations are 225 00:11:29,280 --> 00:11:31,440 Speaker 7: you know, if there's discussions of war like there were 226 00:11:31,559 --> 00:11:33,960 Speaker 7: last yearh Natzi Pelosi went to Taiwan, it's going to 227 00:11:33,960 --> 00:11:35,880 Speaker 7: be much harder for a shugi pain to go to America. 228 00:11:36,080 --> 00:11:38,600 Speaker 7: And to have a meeting with President Biden does go there. 229 00:11:38,840 --> 00:11:41,000 Speaker 7: And the second thing is, I think everyone realizes that 230 00:11:41,040 --> 00:11:43,000 Speaker 7: next year is going to be even worse this year 231 00:11:43,320 --> 00:11:45,800 Speaker 7: for you know, possibly in bilateral ties. You have a 232 00:11:45,800 --> 00:11:48,880 Speaker 7: Taiwanese election presidential election, and you also have a US 233 00:11:48,920 --> 00:11:51,959 Speaker 7: president election, both happening next year, and both of those 234 00:11:52,320 --> 00:11:55,160 Speaker 7: could either set off some kind of you know thing 235 00:11:55,280 --> 00:11:57,800 Speaker 7: like the Nazi Pelosi visit did it to Taiwan did 236 00:11:58,160 --> 00:12:00,520 Speaker 7: or it could just be incredibly heated rhetoric coming out 237 00:12:00,520 --> 00:12:03,079 Speaker 7: of Taiwan or out of the mainland or out of 238 00:12:03,120 --> 00:12:07,760 Speaker 7: the US about ties with Taiwan and the US and China. 239 00:12:07,920 --> 00:12:10,240 Speaker 7: So I think everyone realizes that now is the best 240 00:12:10,240 --> 00:12:12,080 Speaker 7: time to try to reach us sort of stability in 241 00:12:12,080 --> 00:12:15,560 Speaker 7: the relationship and hopefully that will last through the two 242 00:12:15,679 --> 00:12:16,800 Speaker 7: re elections next year. 243 00:12:17,320 --> 00:12:19,920 Speaker 2: Okay, our senior reporter and by Jane James Mager, thank 244 00:12:19,920 --> 00:12:23,480 Speaker 2: you very much. Up next, UK flight cancelations could last 245 00:12:23,480 --> 00:12:26,280 Speaker 2: for days and France's Neuvarish. 246 00:12:27,640 --> 00:12:31,559 Speaker 8: Now the paper review on Bluebird Daybreak Europe, the news 247 00:12:31,600 --> 00:12:33,400 Speaker 8: you need to know from today's. 248 00:12:33,040 --> 00:12:35,040 Speaker 4: Papers and Bluebergs. 249 00:12:35,120 --> 00:12:36,880 Speaker 1: James We'll Cook joins us in the studio for a 250 00:12:36,880 --> 00:12:38,960 Speaker 1: deeper look at some of the business stories in the 251 00:12:38,960 --> 00:12:41,960 Speaker 1: news today. Kimarni James. Let's start off then with UK 252 00:12:42,040 --> 00:12:44,959 Speaker 1: flight cancelations. They are splashed over a number of the 253 00:12:45,000 --> 00:12:45,920 Speaker 1: front pages today. 254 00:12:46,200 --> 00:12:47,920 Speaker 8: Yes, they are calent, and to me this story is 255 00:12:47,920 --> 00:12:50,160 Speaker 8: a big reminder that when the AI bots take over, 256 00:12:50,280 --> 00:12:53,480 Speaker 8: we better be worried. Because what's happened is the computing 257 00:12:53,520 --> 00:12:58,520 Speaker 8: system broke down in the National Aviation Transport Authority yesterday 258 00:12:58,520 --> 00:13:02,120 Speaker 8: on one of the busiest holiday days going and as 259 00:13:02,160 --> 00:13:04,320 Speaker 8: a result, the flight attendants they had to put in 260 00:13:04,440 --> 00:13:08,400 Speaker 8: all the data manually and that meant that more than 261 00:13:08,440 --> 00:13:11,359 Speaker 8: five hundred flights were canceled. Some people are still stranded, 262 00:13:11,679 --> 00:13:13,400 Speaker 8: and as we saw when a similar thing happened in 263 00:13:13,400 --> 00:13:16,000 Speaker 8: the US last Christmas, because planes are now in the 264 00:13:16,040 --> 00:13:19,760 Speaker 8: wrong places, schedules and knock on disruption could take days 265 00:13:19,800 --> 00:13:20,920 Speaker 8: to alleviate. 266 00:13:21,280 --> 00:13:23,520 Speaker 2: I'm sure somebody will argue the AAI will fix all 267 00:13:23,559 --> 00:13:25,240 Speaker 2: of this, and there's no way such things would happen 268 00:13:25,240 --> 00:13:27,000 Speaker 2: if we were all replaced by robots. Anyway, you in 269 00:13:27,000 --> 00:13:30,240 Speaker 2: the studio that robots even are talking. Let's go to 270 00:13:30,280 --> 00:13:32,319 Speaker 2: the FT next for a story about building rules. 271 00:13:32,480 --> 00:13:33,800 Speaker 8: So I'm going to try to convince that this is 272 00:13:33,840 --> 00:13:36,400 Speaker 8: possibly the most important story today because it's all about 273 00:13:36,400 --> 00:13:37,600 Speaker 8: building around rivers. 274 00:13:37,960 --> 00:13:38,120 Speaker 1: Now. 275 00:13:38,240 --> 00:13:40,360 Speaker 8: The UK for a very long time has had a 276 00:13:40,440 --> 00:13:44,000 Speaker 8: massive house building shortage. We are far behind target, and 277 00:13:44,080 --> 00:13:46,240 Speaker 8: construction companies in the UK are going out of business 278 00:13:46,280 --> 00:13:48,720 Speaker 8: at the highest rate in a decade. So at the 279 00:13:48,760 --> 00:13:51,280 Speaker 8: moment we see Michael Gove, who's today set to announce 280 00:13:51,280 --> 00:13:53,760 Speaker 8: with tres coffee, the Environment Secretary, that what they're going 281 00:13:53,840 --> 00:13:54,960 Speaker 8: to do is they're going to get rid of a 282 00:13:55,000 --> 00:13:59,319 Speaker 8: twenty seventeen EU law around water pollution. And if you 283 00:13:59,400 --> 00:14:01,880 Speaker 8: build a large house or our property, you have to 284 00:14:01,880 --> 00:14:03,520 Speaker 8: look at the amount of phosphates that are going into 285 00:14:03,520 --> 00:14:05,440 Speaker 8: the river. There's a risk that these things can cause 286 00:14:05,520 --> 00:14:09,000 Speaker 8: large algae blooms. And it's interesting that this happens in 287 00:14:09,000 --> 00:14:11,320 Speaker 8: the UK where we are seeing massive headlines about raw 288 00:14:11,400 --> 00:14:14,520 Speaker 8: sewage and phases in the water system. It's also something 289 00:14:14,520 --> 00:14:17,520 Speaker 8: where we are seeing this argument about how sufficiency versus 290 00:14:17,520 --> 00:14:20,200 Speaker 8: the quantity of building. But what's fascinating here is it's 291 00:14:20,280 --> 00:14:22,800 Speaker 8: a Brexit rule that is being sort of revoked and 292 00:14:22,880 --> 00:14:24,440 Speaker 8: the government are saying this is going to be a 293 00:14:24,480 --> 00:14:27,440 Speaker 8: big Brexit success. But I go and look at something 294 00:14:27,480 --> 00:14:30,520 Speaker 8: from centers for cities where they say, for example, that 295 00:14:30,680 --> 00:14:33,760 Speaker 8: this UK house building shortage has been happening since the 296 00:14:33,880 --> 00:14:36,480 Speaker 8: nineteen fifties. So what is fascinating here is we are 297 00:14:36,480 --> 00:14:39,360 Speaker 8: seeing a UK specific problem, but we are seeing an 298 00:14:39,360 --> 00:14:41,920 Speaker 8: EU specific law being revoked to sort of deal with it. 299 00:14:42,240 --> 00:14:44,320 Speaker 8: So one of the issues the Conservative government have to 300 00:14:44,360 --> 00:14:47,000 Speaker 8: phase here is that there seems to be a Britain 301 00:14:47,400 --> 00:14:50,680 Speaker 8: unique issue, but so far they're pointing to an EU 302 00:14:50,760 --> 00:14:54,120 Speaker 8: specific problem to deal with it. And we saw with 303 00:14:54,240 --> 00:14:56,520 Speaker 8: Liz Trust the final vote that helped bring her down 304 00:14:56,760 --> 00:15:00,200 Speaker 8: was all about onshore, wind farms and building laws. So 305 00:15:00,320 --> 00:15:03,840 Speaker 8: it is an issue that even Kirstarma's potential future labor 306 00:15:03,880 --> 00:15:06,480 Speaker 8: government will have to deal with. And this stuff matters 307 00:15:06,520 --> 00:15:09,920 Speaker 8: beyond just how properties and no awset value. It affects productivity, 308 00:15:10,200 --> 00:15:13,400 Speaker 8: quality of life, you know, skilled worker retention. House building 309 00:15:13,520 --> 00:15:16,080 Speaker 8: tackles all parts of the economy and it is something 310 00:15:16,120 --> 00:15:17,200 Speaker 8: this government has to deal with. 311 00:15:17,280 --> 00:15:20,240 Speaker 1: No, Absolutely, labor flexibility is so much more. Just lastly, 312 00:15:20,280 --> 00:15:22,720 Speaker 1: the times of writing about millionaires and how many of 313 00:15:22,800 --> 00:15:24,440 Speaker 1: us have French envy. 314 00:15:24,880 --> 00:15:29,160 Speaker 8: Yes, I mean if you based on dollar denomination, Britain 315 00:15:29,240 --> 00:15:32,440 Speaker 8: lost nearly four hundred and fifty thousand millionaires last year, 316 00:15:32,520 --> 00:15:35,080 Speaker 8: Japan four hundred and sixty thousand, Germany two hundred and 317 00:15:35,080 --> 00:15:38,280 Speaker 8: fifty thousand, and America even one point eight million. One 318 00:15:38,280 --> 00:15:40,520 Speaker 8: of the few countries that grew it's millionaires in dollar 319 00:15:40,640 --> 00:15:44,320 Speaker 8: domination was France. It's seen as a burgeoning luxury sector. 320 00:15:45,800 --> 00:15:47,360 Speaker 4: This is Bloomberg Daybreak Europe. 321 00:15:47,360 --> 00:15:49,760 Speaker 2: You're a morning brief on the stories making news from 322 00:15:49,840 --> 00:15:51,640 Speaker 2: London to Wall Streets and beyond. 323 00:15:51,920 --> 00:15:55,880 Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify, 324 00:15:56,000 --> 00:15:57,960 Speaker 1: and anywhere else you get your podcasts. 325 00:15:58,000 --> 00:16:00,080 Speaker 2: You can also listen live each morning on London and 326 00:16:00,200 --> 00:16:03,760 Speaker 2: Dab Radio, the Bloomberg Business app, and Bloomberg dot Com. 327 00:16:03,800 --> 00:16:06,560 Speaker 1: Our flagship New York station, is also available on your 328 00:16:06,600 --> 00:16:11,320 Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 329 00:16:11,520 --> 00:16:12,840 Speaker 1: I'm Caroline Hepka and. 330 00:16:12,800 --> 00:16:15,440 Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all 331 00:16:15,480 --> 00:16:17,880 Speaker 2: the news you need to start your day right here 332 00:16:17,920 --> 00:16:23,440 Speaker 2: on Bloomberg Daybreak Europe.