September 9, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) French Prime Minister Francois Bayrou lost a confidence motion in parliament, forcing a third change in government in just over a year and reviving uncertainty over how the country can tackle its mounting debt burden.
(2) House Democrats on Monday released an alleged birthday note that they said Donald Trump sent to Jeffrey Epstein, raising pressure on the president over questions about his past interactions with the late disgraced financier.
(3) US stocks have been on a tear, setting more than 20 all-time highs this year, but the Federal Reserve’s next move threatens to curb investors’ zeal, JPMorgan Chase & Co.’s trading desk warns.
(4) Rupert Murdoch and his children settled litigation over a trust that controls two influential public companies, ensuring that Fox News keeps its conservative slant and favored son Lachlan Murdoch remains in charge of the globe-spanning media empire.
(5) European car executives are walking a fine line at this week’s Munich auto show: Touting how swell their new electric vehicles are, while on the other hand warning Brussels that they can’t possibly sell only EVs in ten years’ time.
(6) Barclays' Chief Executive Officer CS Venkatakrishnan said a windfall tax on banks in the UK could hinder the government’s push to boost growth in the economy and urged the government to consider other measures.
Podcast Conversation: Londoners Flock to E-Bikes, Boats as Tube Strike Chaos Hits
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Day Baker podcast. Good morning, It's Tuesday,
the ninth of September. I'm Caroline Hepga in London.
Speaker 3 (00:15):
And I'm Stephen Caroline Paris, where Emmanuel Macro is running
out of options as he looks to appoint the seventh
prime minister of his presidency after the country's government collapses
once again.
Speaker 2 (00:26):
And in other news, Democrats release an alleged birthday note
they say Donald Trump sent to the disgrace financier Jeffrey Epstein.
Plus Power and politics, Britain's plan to become a green
energy superpower faces a growing right wing backlash. Let's start
with a round up of our top stories. France's President,
(00:46):
Emmanuel Macoy is searching for a new prime minister after
Francois Beiru lost a confidence vote in parliament. The outgoing
premier will present his government's resignation to the president later
this morning after failing to win support for his deficit
cutting plans. Bruno Rutaeo, who leads the center right Republicans
(01:08):
Party and served as Interior minister in the Beiru government,
says the president must act swiftly.
Speaker 1 (01:16):
And this ame for the problem now is that we
will first need a prime minister as soon as possible,
because we are heading into difficult days and France needs
a budget.
Speaker 2 (01:27):
Bruno Ruteo speaking there via a translator. The market reaction
has been muted, as investors had expected the downfall of
the government. Macro is now seeking a fifth prime minister
in less than two years. In a statement, the president
says he will appoint a new premier in the coming days.
Norway's labor Prime Minister, Yunus gar Stor, has declared victory
(01:51):
in a national election after seeing off a surge of
support for the populist right. The country's center left minority
government one a second term in power, securing just over
half of all seats in the legislature. The anti immigration
Progress Party secured its best result on record, with about
(02:11):
twenty four percent of public backing in Norway versus twenty
eight percent for the Prime Minister's party, in a campaign
that was dominated by debates about welfare, taxes on wealth
and Norway's oil fund investments in Israel. In the US House,
Democrats have released an alleged birthday note they say Donald
(02:33):
Trump sent to the convicted p Dephile Jeffrey Epstein as
part of a book to celebrate his fiftieth birthday in
two thousand and three. The note includes the sign off,
may every day be another wonderful secret, complete with the
sketched outline of a woman's body. Trump has denied composing
the message or that the note existed, and has sued
(02:55):
The Wall Street Journal's reporters, publisher, and founder after it
was initially reported into lie. Bloomberg's Wendy Benjaminson explains some
of the arguments about whether or not the letter is real.
Speaker 4 (03:07):
You know, we don't know if he really wrote it,
but we do know that it was given to the
House Overside Committee under subpoena from the Epstein estate. They
had it in the birthday book, They turned it over
to Congress, and Democrats today released that letter. So there
would have to be a lot of jiu jitsu going
(03:28):
on for that letter to be manufactured. Also remember that
House Republicans on the committee have seen it as well.
Speaker 2 (03:36):
Bloomberg's Wendy Benjaminson speaking there. The release raises pressure on
the president over questions about his past interactions with the
late disgraced financier survivors of sexual abuse by Jeffrey Epstein
are calling on Congress to release all files related to
the case. US talks have been on a record breaking
(03:57):
run in recent months, but JP Morgan says that the
next move could sap investors risk appetite. The Lenders Trading
Desk believes a September interest rate cut could turn into
a quote sell the news event with investors pulling back.
In a separate warning, Goldbin Sachs CEO David Solomon said
that he's not convinced by the case for rapid rate cuts.
Speaker 5 (04:20):
This doesn't feel to me like the policy rate is
extraordinarily restrictive at the moment when you look at risk appetite,
and so you know, risk appetite is definitely you know,
out on what i'd say is the more exuberant end
of the spectrum.
Speaker 2 (04:34):
David Solomon's comments at a Berkleay's Financial Services conference. Meanwhile,
a top economist that Citadel has shared his thoughts on
the US economy, and Haloubide, the Hedge Funds head of
economic research for Fixed income and Macro, says the US
economy is on the good side of a quote fragile equilibrium,
(04:55):
but warned we are quote close to the edge. Now,
Rupert Murdoch and his children have settled litigation over the
trust which controls his media empire. Under the agreement, Murdoch's
eldest son, Lachlan will remain in charge of the company.
Bloomberg's Tiva Adebayo has more.
Speaker 6 (05:17):
It's the family dynasty, which reportedly inspired hit TV series Succession,
but it seems the Murdochs have elected to keep the
drama on screen, settling on the future of their globe
spanning media empire. A new family company controlled by Lachlan
Murdoch will have a voting stake in Fox and News Corp,
whilst three of Murdoch's children will cease to be beneficiaries
(05:39):
of the trust instead, Bloomberg understands Prudence, Elizabeth and James
will each receive one point one billion dollars. The agreement
concludes a legal battle which started in twenty twenty three
when Rupert Murdoch first sought to change the family trust,
putting Lachlan in control. News Corp and Fox will sell
shares worth about one point four billion dollars on behalf
(06:02):
of the three children leaving the trust. In London TIAA
added by Bloomberg Radio.
Speaker 2 (06:09):
Now European car makers, including Mercedes and Volkswagen, are railing
against EU plans to phase out new combustion engine cars
by twenty thirty five. The news comes as industry leaders
at this week's Munich Auto Show promoted their new electric vehicles.
Volkswagen CEO Oliver Bloom told Bloomberg the company is working
(06:30):
to expand its EV offering.
Speaker 7 (06:33):
Yesterday, it was a fantastic day being able to present
our new electric urban family from Volkswagen, beside of a
lot of new technologies, and our ambition is to provide
technology for the people, and that's what we are doing
now with the entry level electric cars. We are market
leader with eighty twenty eight percent in the electric segment,
(06:55):
and these new products will give us a NASA.
Speaker 2 (06:58):
Push Folksville, bargains Oliver Bloom. Speaking there, he also told
journalists that it would be unrealistic to expect to have
one hundred percent electric vehicles by twenty thirty five. His
words come ahead of a summit on Friday between the
European Commission, president of Silivandelion and heavyweights from the industry.
(07:18):
German charlece of Friedrich Mehert, whose party has been critical
of the phase out, is scheduled to speak at the
Munich Show later today to that on cars. Just lastly,
Barkley Ceocsven Katakrishnan has warned that a windfall tax on
banks here in the UK could hinder the government's push
to boost growth in the economy. But both you and
(07:41):
Potts has more now.
Speaker 8 (07:42):
The Barclay CEO says that the roots of growth is
through investments and not through a bank tax. Speaking at
a Barclay's conference in New York, he also argued that
UK lenders already pay a higher rate than their peers
in the US and Europe. He warns that more tax
would damage a sector that employs ten percent of the population.
The intervention comes after a recent think tank report said
(08:02):
a higher bank levy could raise as much as thirty
two billion pounds over the next five years. In London,
I'm une parts of Bloomberg Radio.
Speaker 2 (08:10):
And those are our top stories for you this morning.
Let's take you through the markets. Global stocks climbing for
a fifth day, Asian equities hire half of one percent
on the MSCI Asia Pacific Index. This is after a
surge in bets on US interest rates coming down. That
has also helped the S and P five hundred close
near another record high on Monday. Stop futures for the
(08:33):
US are also up, but USTOK fifty futures are down
a quarter of one percent, perhaps weighed down by the
political issues in France. Will be watching that French German
spread when things get going here in Europe. Later this morning,
TENNY US Treasury yels trading at sport four spot zero
four bloom mcdollar spot indexes down a tenth of one percent.
The euro is actually strengthening. Oil prices are up seven
(08:56):
tenths for Brent and WTI creed futures those aren't the
market now. In a moment, will be being you the
latest on the political chaos in France and also discuss
why Britain's dreams of becoming a green superpower could be
about to run into difficulties. Before that, though, another story
(09:16):
that caught my eye, and this was all about the
tube strike. London is flocking to lime and forest bikes
and scooters yesterday. They were parked all over the pavements
and spilling onto the roads in the city when I
left the office yesterday. But It was interesting that Lime
said that total trips during that four hour rush hour
commute period yesterday jump fifty eight percent, no surprise, but
(09:36):
people also did travel further and for longer. I just
say it's lucky the weather was fine. The tube strike
is going to affect the whole of the capital for
this week. Our empty union saying, you know, the dispute's
over pay and trying to cut back their working hours.
They say that TfL transport for London are being intransigent,
(09:57):
and I see arguments now grow, at least by some
newspaper columnists in favor of going fully driverless for London
underground tube trains. I mean, some of the tube trains
are automated, and we do have one driverless train in
the DLR, but actually it cost a lot of money
to try to transfer to driverless. Anyway, interesting argument. So
(10:18):
that's one story I've been keeping an eye.
Speaker 9 (10:20):
Right.
Speaker 2 (10:21):
Let's go to France now, where President Emanu and Macon
Well accept the resignation of Prime Minister France. We're Bay
related today, but what next. Our own Stephen Carroll is
in Paris for US again today. You had a very
long day yesterday, Stephen, very interesting vote also lots of
speeches in Parliament. Bayreuth spoke at length about the challenges
(10:42):
of debt that France faces, but the result did seem
pretty inevitable, didn't it.
Speaker 9 (10:48):
Yeah, I mean, look, the situation for France.
Speaker 3 (10:50):
Barberio hadn't really changed from the moment that he first
called this vote two weeks prior, versus the action when
the actual votes came in in the National Assembly last night.
He used his speech to MPs to make the same
warnings that he's been making for weeks or even years.
France is drowning in a sea of debt. He talked
about submitting to debt being like submitting to military force.
(11:13):
He did also address some of the alternatives that some
of the other parties have talked about in terms of
how to close the deficit. He mentioned the taxes on
the rich which the opposition have called for, saying that
calling for it for those that are calling for it
forget that France needs investors and if they raise taxes
people will simply leave. There was even a nod to
(11:34):
the UK's change to non dom rules, which he said
it had created the immediate effect of exploding property prices
in Milan, but Ultimately, though, his warnings of dire consequences
came to nothing. MPs voted as they said they would.
He lost by a significant margin. He is the first
prime minister to fall on a confidence vote in the
fifth French Republic since nineteen fifty eight. Another unhappy record
(11:57):
for a prime minister under Emmanuel Macrow, who is now
looking for the seventh prime minister of his presidency and
the fifth in two years.
Speaker 2 (12:05):
Oh dear, who will be prime minister next then? In France?
Speaker 3 (12:09):
Well, look, it's the president's prerogative to choose, and he
can pick anyone that he likes. Some of the names
that are being talked about now come from within the
outgoing cabinet, the Defense Minister Sebastian Laclu, the Labor Minister
Katherine Vaudran, the Justice Minister Geraldomanan. But it's difficult to
see how they could succeed where Barnier and Francoi Bayrou
failed in the last two governments, to try and build
(12:31):
some sort of working minority in the parliament to get
measures past if he looked outside of his allies. The
Socialist Party has said they're ready to govern and they
were quick to offer their services after the vote yesterday,
but that comes with conditions. They've proposed an alternative version
of the budget that had been put forward by franso Bayrou,
which involve a slower pace of spending cuts and measures
(12:52):
like a wealth tax that would prove controversial to some
bringing the Socialist some boards may also cause splits among
the coalition that Macron already has in place. The center
right Republicans said they won't take part in the government
that's led by the Socialist Party.
Speaker 6 (13:06):
Now.
Speaker 3 (13:06):
One name which has resurfaced which might satisfy some of
the demands as Bonar Kaznov. He's a former prime minister
under fransvoor Roland who distanced himself from the new generation
of Socialists. Macron considered him last December when he was
looking for a prime minister as well.
Speaker 9 (13:21):
There's a question too as to when we'll know.
Speaker 3 (13:23):
Macron can take essentially as long as he wants to
make this decision. I was comparing the statements from the
Elise last December and yesterday. In December, the statement said
that Emmanuel Macron would name a prime minister in the
coming days. They added a word to yesterday's statement which
is sort of translated in the imminent coming days. Last
time around it took nine days, so perhaps we can
(13:44):
hope that there might.
Speaker 9 (13:45):
Be a decision made faster than that this time around.
Speaker 2 (13:47):
Oh okay, side by side statement comparisons. I mean, you know,
that just shows you how we are kind of rinse
and repeating this story in France. Surely the pressure on
Immanue and Macon is going to ratchet up even further.
I mean there have been calls for his resignation.
Speaker 9 (14:05):
Yeah.
Speaker 3 (14:05):
Indeed, the far left and the far right immediately repeated
their calls for Emmanual Macron to go after the confidence
vote collapse. The government of Francois Biroumanual Macron's term that
runs until twenty twenty seven. He's given no indication that
he plans to resign, and there's really no way to
get rid of him as president, despite those calls from
the significant.
Speaker 9 (14:24):
Blocks in the Parliament.
Speaker 3 (14:26):
It's worth though, remembering the space the public having all
of this as well. There are two major protests planned
in France. One is tomorrow, which is a movement that's
been largely organized on social media called Let's Block Everything,
and then a more formal demonstration organized by the unions,
which is happening next week. Both are expected to cause
major disruption to public services and transport. Their warnings of
(14:47):
course that there could also be issues around you know,
violence on the streets as well. That's something that some
people are definitely worried about here too. Emmanuel Macron, for
his part, will want to try and have an administration
in place as soon possible to deal with some of
those pressing issues, not least to get on with work
on the budget as well. But there's politics involved in
all of this as well, because we have to think
(15:09):
about how the next presidential election will play out. Emanuel
Macro will be thinking about who could replace him, who
could take his place from a centrist candidate for that too,
So the decisions that he makes now have an impact
on that as well. Just think about Mary Leapenn and
this Too Far Right, a President of the leader of
their group in the National Assembly. She's currently barred from
(15:31):
running for election after being found guilty of misuse of
EU funds in a trial. Her appeal will be heard
early next year, so we'll see whether or not she
could be eligible by twenty twenty seven, but an early
election would potentially rule her out otherwise, I say for
the moment, no sign that Emmanuel Macro is going to
respond to any of those calls for his resignation.
Speaker 2 (15:51):
Stephen, thank you so much for being with us. Life
on Paris Blomberg's Stephen Cowell. Then on the latest what
we're expecting in France. Thank you so much for being
with us this morning. Stay with us. More from Bloomberg
Day BAQUB coming up after this. I want to turn
our attention to the UK now. The Labor government's pledge
(16:13):
to achieve a clean power grid by twenty thirty. Kirstarmer's
promise now faces a crucial economic test with a significant
offshore wind subsidy auction, but also growing political challenges too.
Joining me is Bloomberg's energy and climate change reporter Will Mathis.
Well good to speak to you. I thought your piece
(16:33):
when I met it this morning was just very interesting.
Firstly though the basics, I mean, how important was this
political promise, this campaign promise for clean power and actually
what does it involve?
Speaker 10 (16:47):
Yeah, this was one of the key promises to during
the campaign for the Labor Party and it would involve,
you know, our transformation of the country power grid in
a way that no other country in the world has
done yet, so it would really be a test case
whether it's feasible to do the kind of deep de
(17:10):
carbonization of the power grid that many countries say they
would like to do to reach their clichnicals, but none
really have even a plan to do it. So the
UK has come up with a plan and is trying
to achieve it.
Speaker 2 (17:25):
Okay, how does the government then deliver on this, because
it's a promise to both cut emissions and also to
cut consumers energy costs.
Speaker 10 (17:36):
Yeah, those were two related promises. And you know, five
years ago it was easy to say that you could
increase renewable power and cut costs because wind power in particular,
which is what the UK really needs because you know
solar you know you're not going to get solar power
in the winter when people need the most electricity, and
(18:00):
or used to be getting cheaper and cheaper, but during
the pandemic supply chain constraints that inflation just led costs
to increase so much and that really hasn't changed the
price of building a offshore wind farm. It just keeps
getting more expensive. And so the idea now that you
(18:20):
can cut costs and cut emissions from the power system
by using offshore wind is looking a bit outdated and
it doesn't really seem like the government has reckoned with that.
And what they are saying now more and more is
that this is, you know, protects us from the risk
that gas prices could go up again like they did
(18:42):
a few years ago. And that's true. But it's also
true that if gas prices come down, then the UK
is looking increasingly expensive.
Speaker 2 (18:51):
That's interesting and also, as you say, it's looking like
quite a vintage pledge because the political headwinds have shifted
their signific pressure to reverse course on green policies, I
mean from President Trump, other politicians, some corporates are also
changing their stance now, aren't they.
Speaker 10 (19:09):
Yeah, that's right. I mean when Bresa May passed an
amendment that enshrined the UK's net zero pledge into law,
there was no dissent, you know, it passed with a
parliamentary procedure that doesn't require an actual vote, and it's
really impossible to think that that would happen today. You
have the Conservative Party criticizing net zero. You know, Nigel
(19:33):
Farage and his Reform Party, which are the leading the
polls today, are obviously very anti net zero or even
have talked about, you know, getting rid of these contracts
that have underpinned the drive for decarbonization and that political
consensus that exists in the UK for quite a long
(19:55):
time that you know the country needs to do more
and more to yes, clibate change has really cracked, and
we're going to see what that means for the actual
trajectory of policy of this country.
Speaker 3 (20:12):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:18):
Look for us on your podcast feed every morning, on Apple, Spotify,
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Speaker 3 (20:24):
You can also listen live each morning on London Dab Radio,
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Speaker 2 (20:30):
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Speaker 9 (20:38):
I'm Caroline Hepka and I'm Stephen. Carol.
Speaker 3 (20:40):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak Europe.
Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Day Baker podcast. Good morning, It's Tuesday,
the ninth of September. I'm Caroline Hepga in London.
Speaker 3 (00:15):
And I'm Stephen Caroline Paris, where Emmanuel Macro is running
out of options as he looks to appoint the seventh
prime minister of his presidency after the country's government collapses
once again.
Speaker 2 (00:26):
And in other news, Democrats release an alleged birthday note
they say Donald Trump sent to the disgrace financier Jeffrey Epstein.
Plus Power and politics, Britain's plan to become a green
energy superpower faces a growing right wing backlash. Let's start
with a round up of our top stories. France's President,
(00:46):
Emmanuel Macoy is searching for a new prime minister after
Francois Beiru lost a confidence vote in parliament. The outgoing
premier will present his government's resignation to the president later
this morning after failing to win support for his deficit
cutting plans. Bruno Rutaeo, who leads the center right Republicans
(01:08):
Party and served as Interior minister in the Beiru government,
says the president must act swiftly.
Speaker 1 (01:16):
And this ame for the problem now is that we
will first need a prime minister as soon as possible,
because we are heading into difficult days and France needs
a budget.
Speaker 2 (01:27):
Bruno Ruteo speaking there via a translator. The market reaction
has been muted, as investors had expected the downfall of
the government. Macro is now seeking a fifth prime minister
in less than two years. In a statement, the president
says he will appoint a new premier in the coming days.
Norway's labor Prime Minister, Yunus gar Stor, has declared victory
(01:51):
in a national election after seeing off a surge of
support for the populist right. The country's center left minority
government one a second term in power, securing just over
half of all seats in the legislature. The anti immigration
Progress Party secured its best result on record, with about
(02:11):
twenty four percent of public backing in Norway versus twenty
eight percent for the Prime Minister's party, in a campaign
that was dominated by debates about welfare, taxes on wealth
and Norway's oil fund investments in Israel. In the US House,
Democrats have released an alleged birthday note they say Donald
(02:33):
Trump sent to the convicted p Dephile Jeffrey Epstein as
part of a book to celebrate his fiftieth birthday in
two thousand and three. The note includes the sign off,
may every day be another wonderful secret, complete with the
sketched outline of a woman's body. Trump has denied composing
the message or that the note existed, and has sued
(02:55):
The Wall Street Journal's reporters, publisher, and founder after it
was initially reported into lie. Bloomberg's Wendy Benjaminson explains some
of the arguments about whether or not the letter is real.
Speaker 4 (03:07):
You know, we don't know if he really wrote it,
but we do know that it was given to the
House Overside Committee under subpoena from the Epstein estate. They
had it in the birthday book, They turned it over
to Congress, and Democrats today released that letter. So there
would have to be a lot of jiu jitsu going
(03:28):
on for that letter to be manufactured. Also remember that
House Republicans on the committee have seen it as well.
Speaker 2 (03:36):
Bloomberg's Wendy Benjaminson speaking there. The release raises pressure on
the president over questions about his past interactions with the
late disgraced financier survivors of sexual abuse by Jeffrey Epstein
are calling on Congress to release all files related to
the case. US talks have been on a record breaking
(03:57):
run in recent months, but JP Morgan says that the
next move could sap investors risk appetite. The Lenders Trading
Desk believes a September interest rate cut could turn into
a quote sell the news event with investors pulling back.
In a separate warning, Goldbin Sachs CEO David Solomon said
that he's not convinced by the case for rapid rate cuts.
Speaker 5 (04:20):
This doesn't feel to me like the policy rate is
extraordinarily restrictive at the moment when you look at risk appetite,
and so you know, risk appetite is definitely you know,
out on what i'd say is the more exuberant end
of the spectrum.
Speaker 2 (04:34):
David Solomon's comments at a Berkleay's Financial Services conference. Meanwhile,
a top economist that Citadel has shared his thoughts on
the US economy, and Haloubide, the Hedge Funds head of
economic research for Fixed income and Macro, says the US
economy is on the good side of a quote fragile equilibrium,
(04:55):
but warned we are quote close to the edge. Now,
Rupert Murdoch and his children have settled litigation over the
trust which controls his media empire. Under the agreement, Murdoch's
eldest son, Lachlan will remain in charge of the company.
Bloomberg's Tiva Adebayo has more.
Speaker 6 (05:17):
It's the family dynasty, which reportedly inspired hit TV series Succession,
but it seems the Murdochs have elected to keep the
drama on screen, settling on the future of their globe
spanning media empire. A new family company controlled by Lachlan
Murdoch will have a voting stake in Fox and News Corp,
whilst three of Murdoch's children will cease to be beneficiaries
(05:39):
of the trust instead, Bloomberg understands Prudence, Elizabeth and James
will each receive one point one billion dollars. The agreement
concludes a legal battle which started in twenty twenty three
when Rupert Murdoch first sought to change the family trust,
putting Lachlan in control. News Corp and Fox will sell
shares worth about one point four billion dollars on behalf
(06:02):
of the three children leaving the trust. In London TIAA
added by Bloomberg Radio.
Speaker 2 (06:09):
Now European car makers, including Mercedes and Volkswagen, are railing
against EU plans to phase out new combustion engine cars
by twenty thirty five. The news comes as industry leaders
at this week's Munich Auto Show promoted their new electric vehicles.
Volkswagen CEO Oliver Bloom told Bloomberg the company is working
(06:30):
to expand its EV offering.
Speaker 7 (06:33):
Yesterday, it was a fantastic day being able to present
our new electric urban family from Volkswagen, beside of a
lot of new technologies, and our ambition is to provide
technology for the people, and that's what we are doing
now with the entry level electric cars. We are market
leader with eighty twenty eight percent in the electric segment,
(06:55):
and these new products will give us a NASA.
Speaker 2 (06:58):
Push Folksville, bargains Oliver Bloom. Speaking there, he also told
journalists that it would be unrealistic to expect to have
one hundred percent electric vehicles by twenty thirty five. His
words come ahead of a summit on Friday between the
European Commission, president of Silivandelion and heavyweights from the industry.
(07:18):
German charlece of Friedrich Mehert, whose party has been critical
of the phase out, is scheduled to speak at the
Munich Show later today to that on cars. Just lastly,
Barkley Ceocsven Katakrishnan has warned that a windfall tax on
banks here in the UK could hinder the government's push
to boost growth in the economy. But both you and
(07:41):
Potts has more now.
Speaker 8 (07:42):
The Barclay CEO says that the roots of growth is
through investments and not through a bank tax. Speaking at
a Barclay's conference in New York, he also argued that
UK lenders already pay a higher rate than their peers
in the US and Europe. He warns that more tax
would damage a sector that employs ten percent of the population.
The intervention comes after a recent think tank report said
(08:02):
a higher bank levy could raise as much as thirty
two billion pounds over the next five years. In London,
I'm une parts of Bloomberg Radio.
Speaker 2 (08:10):
And those are our top stories for you this morning.
Let's take you through the markets. Global stocks climbing for
a fifth day, Asian equities hire half of one percent
on the MSCI Asia Pacific Index. This is after a
surge in bets on US interest rates coming down. That
has also helped the S and P five hundred close
near another record high on Monday. Stop futures for the
(08:33):
US are also up, but USTOK fifty futures are down
a quarter of one percent, perhaps weighed down by the
political issues in France. Will be watching that French German
spread when things get going here in Europe. Later this morning,
TENNY US Treasury yels trading at sport four spot zero
four bloom mcdollar spot indexes down a tenth of one percent.
The euro is actually strengthening. Oil prices are up seven
(08:56):
tenths for Brent and WTI creed futures those aren't the
market now. In a moment, will be being you the
latest on the political chaos in France and also discuss
why Britain's dreams of becoming a green superpower could be
about to run into difficulties. Before that, though, another story
(09:16):
that caught my eye, and this was all about the
tube strike. London is flocking to lime and forest bikes
and scooters yesterday. They were parked all over the pavements
and spilling onto the roads in the city when I
left the office yesterday. But It was interesting that Lime
said that total trips during that four hour rush hour
commute period yesterday jump fifty eight percent, no surprise, but
(09:36):
people also did travel further and for longer. I just
say it's lucky the weather was fine. The tube strike
is going to affect the whole of the capital for
this week. Our empty union saying, you know, the dispute's
over pay and trying to cut back their working hours.
They say that TfL transport for London are being intransigent,
(09:57):
and I see arguments now grow, at least by some
newspaper columnists in favor of going fully driverless for London
underground tube trains. I mean, some of the tube trains
are automated, and we do have one driverless train in
the DLR, but actually it cost a lot of money
to try to transfer to driverless. Anyway, interesting argument. So
(10:18):
that's one story I've been keeping an eye.
Speaker 9 (10:20):
Right.
Speaker 2 (10:21):
Let's go to France now, where President Emanu and Macon
Well accept the resignation of Prime Minister France. We're Bay
related today, but what next. Our own Stephen Carroll is
in Paris for US again today. You had a very
long day yesterday, Stephen, very interesting vote also lots of
speeches in Parliament. Bayreuth spoke at length about the challenges
(10:42):
of debt that France faces, but the result did seem
pretty inevitable, didn't it.
Speaker 9 (10:48):
Yeah, I mean, look, the situation for France.
Speaker 3 (10:50):
Barberio hadn't really changed from the moment that he first
called this vote two weeks prior, versus the action when
the actual votes came in in the National Assembly last night.
He used his speech to MPs to make the same
warnings that he's been making for weeks or even years.
France is drowning in a sea of debt. He talked
about submitting to debt being like submitting to military force.
(11:13):
He did also address some of the alternatives that some
of the other parties have talked about in terms of
how to close the deficit. He mentioned the taxes on
the rich which the opposition have called for, saying that
calling for it for those that are calling for it
forget that France needs investors and if they raise taxes
people will simply leave. There was even a nod to
(11:34):
the UK's change to non dom rules, which he said
it had created the immediate effect of exploding property prices
in Milan, but Ultimately, though, his warnings of dire consequences
came to nothing. MPs voted as they said they would.
He lost by a significant margin. He is the first
prime minister to fall on a confidence vote in the
fifth French Republic since nineteen fifty eight. Another unhappy record
(11:57):
for a prime minister under Emmanuel Macrow, who is now
looking for the seventh prime minister of his presidency and
the fifth in two years.
Speaker 2 (12:05):
Oh dear, who will be prime minister next then? In France?
Speaker 3 (12:09):
Well, look, it's the president's prerogative to choose, and he
can pick anyone that he likes. Some of the names
that are being talked about now come from within the
outgoing cabinet, the Defense Minister Sebastian Laclu, the Labor Minister
Katherine Vaudran, the Justice Minister Geraldomanan. But it's difficult to
see how they could succeed where Barnier and Francoi Bayrou
failed in the last two governments, to try and build
(12:31):
some sort of working minority in the parliament to get
measures past if he looked outside of his allies. The
Socialist Party has said they're ready to govern and they
were quick to offer their services after the vote yesterday,
but that comes with conditions. They've proposed an alternative version
of the budget that had been put forward by franso Bayrou,
which involve a slower pace of spending cuts and measures
(12:52):
like a wealth tax that would prove controversial to some
bringing the Socialist some boards may also cause splits among
the coalition that Macron already has in place. The center
right Republicans said they won't take part in the government
that's led by the Socialist Party.
Speaker 6 (13:06):
Now.
Speaker 3 (13:06):
One name which has resurfaced which might satisfy some of
the demands as Bonar Kaznov. He's a former prime minister
under fransvoor Roland who distanced himself from the new generation
of Socialists. Macron considered him last December when he was
looking for a prime minister as well.
Speaker 9 (13:21):
There's a question too as to when we'll know.
Speaker 3 (13:23):
Macron can take essentially as long as he wants to
make this decision. I was comparing the statements from the
Elise last December and yesterday. In December, the statement said
that Emmanuel Macron would name a prime minister in the
coming days. They added a word to yesterday's statement which
is sort of translated in the imminent coming days. Last
time around it took nine days, so perhaps we can
(13:44):
hope that there might.
Speaker 9 (13:45):
Be a decision made faster than that this time around.
Speaker 2 (13:47):
Oh okay, side by side statement comparisons. I mean, you know,
that just shows you how we are kind of rinse
and repeating this story in France. Surely the pressure on
Immanue and Macon is going to ratchet up even further.
I mean there have been calls for his resignation.
Speaker 9 (14:05):
Yeah.
Speaker 3 (14:05):
Indeed, the far left and the far right immediately repeated
their calls for Emmanual Macron to go after the confidence
vote collapse. The government of Francois Biroumanual Macron's term that
runs until twenty twenty seven. He's given no indication that
he plans to resign, and there's really no way to
get rid of him as president, despite those calls from
the significant.
Speaker 9 (14:24):
Blocks in the Parliament.
Speaker 3 (14:26):
It's worth though, remembering the space the public having all
of this as well. There are two major protests planned
in France. One is tomorrow, which is a movement that's
been largely organized on social media called Let's Block Everything,
and then a more formal demonstration organized by the unions,
which is happening next week. Both are expected to cause
major disruption to public services and transport. Their warnings of
(14:47):
course that there could also be issues around you know,
violence on the streets as well. That's something that some
people are definitely worried about here too. Emmanuel Macron, for
his part, will want to try and have an administration
in place as soon possible to deal with some of
those pressing issues, not least to get on with work
on the budget as well. But there's politics involved in
all of this as well, because we have to think
(15:09):
about how the next presidential election will play out. Emanuel
Macro will be thinking about who could replace him, who
could take his place from a centrist candidate for that too,
So the decisions that he makes now have an impact
on that as well. Just think about Mary Leapenn and
this Too Far Right, a President of the leader of
their group in the National Assembly. She's currently barred from
(15:31):
running for election after being found guilty of misuse of
EU funds in a trial. Her appeal will be heard
early next year, so we'll see whether or not she
could be eligible by twenty twenty seven, but an early
election would potentially rule her out otherwise, I say for
the moment, no sign that Emmanuel Macro is going to
respond to any of those calls for his resignation.
Speaker 2 (15:51):
Stephen, thank you so much for being with us. Life
on Paris Blomberg's Stephen Cowell. Then on the latest what
we're expecting in France. Thank you so much for being
with us this morning. Stay with us. More from Bloomberg
Day BAQUB coming up after this. I want to turn
our attention to the UK now. The Labor government's pledge
(16:13):
to achieve a clean power grid by twenty thirty. Kirstarmer's
promise now faces a crucial economic test with a significant
offshore wind subsidy auction, but also growing political challenges too.
Joining me is Bloomberg's energy and climate change reporter Will Mathis.
Well good to speak to you. I thought your piece
(16:33):
when I met it this morning was just very interesting.
Firstly though the basics, I mean, how important was this
political promise, this campaign promise for clean power and actually
what does it involve?
Speaker 10 (16:47):
Yeah, this was one of the key promises to during
the campaign for the Labor Party and it would involve,
you know, our transformation of the country power grid in
a way that no other country in the world has
done yet, so it would really be a test case
whether it's feasible to do the kind of deep de
(17:10):
carbonization of the power grid that many countries say they
would like to do to reach their clichnicals, but none
really have even a plan to do it. So the
UK has come up with a plan and is trying
to achieve it.
Speaker 2 (17:25):
Okay, how does the government then deliver on this, because
it's a promise to both cut emissions and also to
cut consumers energy costs.
Speaker 10 (17:36):
Yeah, those were two related promises. And you know, five
years ago it was easy to say that you could
increase renewable power and cut costs because wind power in particular,
which is what the UK really needs because you know
solar you know you're not going to get solar power
in the winter when people need the most electricity, and
(18:00):
or used to be getting cheaper and cheaper, but during
the pandemic supply chain constraints that inflation just led costs
to increase so much and that really hasn't changed the
price of building a offshore wind farm. It just keeps
getting more expensive. And so the idea now that you
(18:20):
can cut costs and cut emissions from the power system
by using offshore wind is looking a bit outdated and
it doesn't really seem like the government has reckoned with that.
And what they are saying now more and more is
that this is, you know, protects us from the risk
that gas prices could go up again like they did
(18:42):
a few years ago. And that's true. But it's also
true that if gas prices come down, then the UK
is looking increasingly expensive.
Speaker 2 (18:51):
That's interesting and also, as you say, it's looking like
quite a vintage pledge because the political headwinds have shifted
their signific pressure to reverse course on green policies, I
mean from President Trump, other politicians, some corporates are also
changing their stance now, aren't they.
Speaker 10 (19:09):
Yeah, that's right. I mean when Bresa May passed an
amendment that enshrined the UK's net zero pledge into law,
there was no dissent, you know, it passed with a
parliamentary procedure that doesn't require an actual vote, and it's
really impossible to think that that would happen today. You
have the Conservative Party criticizing net zero. You know, Nigel
(19:33):
Farage and his Reform Party, which are the leading the
polls today, are obviously very anti net zero or even
have talked about, you know, getting rid of these contracts
that have underpinned the drive for decarbonization and that political
consensus that exists in the UK for quite a long
(19:55):
time that you know the country needs to do more
and more to yes, clibate change has really cracked, and
we're going to see what that means for the actual
trajectory of policy of this country.
Speaker 3 (20:12):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:18):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (20:24):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:30):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 9 (20:38):
I'm Caroline Hepka and I'm Stephen. Carol.
Speaker 3 (20:40):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak Europe.
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