November 7, 2025 • 19 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Tesla shareholders have approved a $1 trillion compensation package for Chief Executive Officer Elon Musk, the largest payout ever awarded to a corporate leader.
(2) OpenAI CEO Sam Altman pushed back at the idea that the company would seek federal guarantees to reduce the risk of its AI infrastructure spending spree.
(3) Hungary's Prime Minister Viktor Orban visits the White House later today, hoping his friendship with Donald Trump can spare his country from US sanctions on Russian oil.
(4) The Bank of England has warned that Chancellor Rachel Reeves will deliver her budget amid weak investment, rising unemployment, and slowing growth.
(5) Comcast is in talks to acquire ITV's media and entertainment unit in a deal that would dramatically shake up the UK broadcasting landscape.
(6) Goldman Sachs is promoting the smallest proportion of women to managing director since Chief Executive Officer David Solomon took the top job in 2018.
Podcast Conversation: Foreign-Language Oscar Contenders Find a Home at the Multiplex
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Transcript
Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2 (00:09):
This is the BlueBag Day vi q At podcast. Good morning,
It's Friday, the seventh of November. I'm Caroline Hepcitt in
London and.
Speaker 1 (00:15):
I'm Stephen Caroline Brussels. Coming up today, Tesla shareholders approve
Elon Musk's record breaking one trillion dollar pay packet.
Speaker 2 (00:24):
Open Ai CEO Sam Altman rejects the need for government
bailouts as lofty tech valuations way on the market.
Speaker 1 (00:32):
Plus global studies how the UK's VAT squeeze is driving
Britain's top private schools to chase new money overseas.
Speaker 2 (00:41):
Let's start with a roundup of our top stories.
Speaker 1 (00:44):
Tesla's shareholders have approved a one trillion dollar compensation package
for CEO Elon Musk. More than seventy five percent of
votes were cast in favor of the payout. It clears
a path from Musk to expand his take in Tesla
to twenty five percent over the next Decade's Bloomberg TeX's
Ed Ludlow.
Speaker 3 (01:02):
For Elon Musk, this was about having more voting power
and voting control. And for those institutional investors that voted no,
they were worried about concentration of voting power that he
had and dilution for them. In the end, voters have
overwhelmingly come out seventy five percent of them or more
and said we're happy to hand over more control to
Elon Musk and keep him in the driver's seat to
(01:24):
realize these longer term goals in robotics in an autonomous.
Speaker 1 (01:28):
Driving Bloomberg's ed Ludlow. To achieve the full payout, Moscow
will have to deliver on targets to significantly expand Tesla's
market value. The company's shares were a little changed in
thursday's postmarket trading.
Speaker 2 (01:40):
Open AI's CEO Sam Altman says he doesn't want a
government bailout if the company's plans to spend one point
four trillion dollars on artificial intelligence go wrong. Writing on
social media, the boss of the world's most valuable startup
said he doesn't want government guarantees for its spending on
data centers. It comes after open AI's CFO Sarah Fryer
(02:03):
hinted at a role for the US government to backstop
financing for Ai in an interview on Wednesday. The comments
come as investors grow increasingly concerned over stretched AI valuations.
Ven Ram is Bloomberg's cross asset strategists.
Speaker 4 (02:19):
By now, it's kind of almost universally acknowledged that we
are margining steadily towards an equity bubble. BAC and P
five hundred is stating at twenty six times prospective earnings.
The Nasdaq hundred are staggering thirty two times. Those are
levels that are punitive and have seldom proved sustainable in
the past. The thing with this rally, the rally this year,
(02:39):
is that you know almost every investor knows it's all
going to turn into pumpkins and mice at midnight. Only,
as Buffett would say, no one in the room as
a clock.
Speaker 2 (02:48):
Ben Ram speaking there as the tech heavy Nasdaq felt
almost four percent from its record at the end of
last month, but it's still up nearly twenty percent so
far this year.
Speaker 1 (03:00):
Hungary's Prime Minister Victor Orban visits the White House later,
hoping his friendship with Donald Trump can spare his country
from US sanctions on Russian oil. Bloomberg's Micaul Cubala has more.
Speaker 5 (03:10):
A year after cheering Donald Trump's re election, Victor Orban
is coming to Washington with the raft of offers and
a request the Hungarian Prime minister wants a reprieve from
US sanctions on Russian oil. They threatened to raise fuel
prices back home and deepen troubles ahead of next year's election.
In Exchange, sources told Bloomberg he is coming to the
(03:31):
White House with pledges to purchase American leg and nuclear
fuel to scramble for deal. Marks an ironic turn for Orban.
He once counted on his ties to Trump for political gain,
but is now in damage control mode as the US
President titans penalties on Moscow. In Brussels, Michal Kubala Bloomberg
radio him.
Speaker 2 (03:51):
In the UK, the Bank of England has warned that
Chancellor Rachel Reeves will deliver her budget and made weak investment,
rising unemployment and slowing growth. Central Bank held interest rates
at four percent in a five to four vote that
laid the groundwork for a December cut. Yesterday, the Bank's Governor,
Andrew Bailey told Bloomberg that the UK's monetary policy still
(04:12):
remains restrictive for the moment now.
Speaker 6 (04:15):
In August, I would say I was concerned more on
the upside risk, but I think the news that we've
had subsequent to that has left me an a more
balanced possessions. So that was very much my view. But
as I said, as I've said a number of times,
we do need to see more evidence because so far
we've had one inflation number that's come in, you know,
under what we've orderally obviously good, we need to say
(04:37):
some more.
Speaker 2 (04:38):
That was the Bank of England Governor Andrew Bailey. He
went on to say that he is committed to serving
out his full eight year term as governor. His comments
came after afore UK Lee denied your Farage told bluebergs
Michelle Hussainin that the governor had had quote a.
Speaker 1 (04:54):
Good run comcasts and talks to buy ITV's media and
entertainment units in a deal that could value the business
at around two billion dollars. The conglomerate already owns rival
broadcaster Skies pay television business in Europe. Bloomberg understands the
same advisors who worked on that deal seven years ago,
Morgan Stanley and Roby Warshaw, are currently advising ITV. If
(05:15):
the deal does go through, the acquisition would dramatically shake
up the UK broadcasting landscape.
Speaker 2 (05:20):
Goldman Sachs is promoting the smallest proportion of women to
managing director level since the CEO, David Solomon took the
top job in twenty eighteen. Bloomberg's Ewen Potts has more Now.
Speaker 7 (05:33):
Goldman Sachs says that women make up twenty seven percent
of their new managing director class. That's down from thirty
one percent in the last set of similar promotions back
in twenty twenty three. It also breaks a trend of
consistent growth since twenty seventeen. CEO David Solomon's made numerous
public pledges to advance women and improve inclusivity, telling Congress
in twenty nineteen that a core part of his tenure
(05:56):
would be defined by that goal. In total, the bank
promoted six hundred eight staff to managing director. That's the
highest number in four years. In London, I'm you and
Pot's Spoomberg Radio.
Speaker 1 (06:06):
Those are your top stories on the markets this morning.
Eurostock's fifty futures up a tenth of one percent. The
mscis Your Pacific Index is down by nine tens of
one percent. The Nicka and Tokyo currently one point three
percent lower as well. Wall Street futures are higher three
tenths for SMP Mini futures this morning, the ten year
treasury yield up two basis points at four point one percent.
Speaker 2 (06:26):
In a moment, we'll bring you more on that staggering
pay deal that Tesla investors have approved for Elon Masker,
though obviously some strings and goals attached. Plus a special
report on how British private schools moves to expand abroad
haven't always gone exactly to plan. But another story is
also caught ari this morning voting for next year's Oscars.
(06:49):
It's not begun yet, but Bloomberg's Mark Ledorf has identified
some key titles to be watching out for. Will you
be watching any of these films, Stephen?
Speaker 1 (06:58):
I'm going to try to do better this year than
I have in previous years because I feel like I've
missed out on every important film over the past I
don't know, decades, so it may be time for me
to get back into it. The name that Mark says
to what is sentimental value? It's mostly in Norwegian. A
family drama about his family trying to figure out what
to do with the family home after their mother's death.
Sounds fascinating from the director Jokim Treer. Part of a
(07:22):
broader trend that Mark identifies of more top quality films
that aren't in English.
Speaker 8 (07:27):
This is something that we've seen creeping.
Speaker 1 (07:29):
Up through the oscars as well, you know, breaking out
of the international film category and into the mainstream as well.
And more productions being made in the US that are
multi lingual as well, think of Amelia Perez being one
recent example of those as well. You know, everything everywhere,
all at once, there's so many of them now we're
seeing more multi lingual versions and this Mark says it's
(07:50):
thanks to streamers. They're making more international content. People are
getting more used to reading subtitles, for example.
Speaker 8 (07:56):
And this has me internally cheering.
Speaker 2 (07:59):
Yeah, and maybe a bit of a stretch for me,
maybe for you also, Stephen, But no, you're right. I
think maybe this is one of the big unexpected benefits
of the streamers. You know, people sometimes are concerned about
the flattening of global culture and you know, everything sort
of being made for an international, global audience, but for
the streamers, largely in the US. But I think this
(08:19):
is the kind of unexpected benefit, isn't it that you
get to watch programs in all sorts of different languages.
Speaker 8 (08:25):
Well, look, maybe it's a piercing of the anglosphere.
Speaker 1 (08:27):
Maybe we're moving away from a position where you know,
only we only consume in English language cultures in English
language speaking countries, and certainly, as someone who've recently relocated
to an extremely multi lingual city where it's speaking two
languages is not enough. I think that it's, you know,
a great thing that we should all be excited about
expanding our cultural horizons.
Speaker 2 (08:47):
Love it. We will put a link to that story
in our show notes.
Speaker 1 (08:51):
Well, that's bringing more now on the story from Tesla
and the one trillion dollar pay package that was approved
for elon Moscar transport reporter Danny Lee joins us now
for more. Danny, more than seventy five percent of Tesla's
shareholders backed this. Was it an easy choice for them?
Speaker 9 (09:06):
I think for the individual shareholders, clearly big fans of Musk,
these are the typical kind of retail shareholders overwhelmingly would
have supported. But we saw this huge campaign over many weeks,
obviously led by chair Robin Denholm, to get people to
support this, including institutional shareholders. Of course, we've seen a
(09:26):
lot of advisory firms recommend voting against this pay package,
this outsized pay package for el Musk so there has
been a lot of deliberation, particularly online campaigning, for large
firms who hold test a stock to vote in favor,
and ultimately what potentially looked like was going to be
a very narrow vote was an overwhelming victory or consensus
(09:49):
that el Musk should be given such a goal, such
a juicy carrot, in order to carry out what he
wants to transform Tesla.
Speaker 2 (09:59):
Yeah. Absolutely, you know, it's been quite a sort of
bruising exchange, hasn't it in some ways? But as you say,
Musk does have to achieve quite a hefty series of
benchmarks in order to get this money. Just talk us
through the goals and actually how achievable they look now?
Speaker 9 (10:15):
Yeah, I think that the word to describe all of
this is very dizzying. Dizzying because Tesla right now is
a one point five trillion company. Elil Musk has to
take that to eight ft eight point five trillion, and
the kind of series of operational milestones he has to
subsequently achieve. For example, the high end is a four
hundred billion dollar adjusted to profitability. That's such a crazy number.
(10:41):
But you know, these are kind of the stretch goals
that the border is. So he also has to deliver
twenty million vehicles, sell a million robots and robotaxis. So
these are all things which are obviously clearly designed to
be stretched and it's not going to be an easy task.
Is as Eil Musk has been given this kind of
free reign to do what he needs. But at the
end of the day, this one trillion doesn't really matter
(11:02):
for el Musks so much. He was obviously recently awarded
thirty billion dollars by the Tesla board, but ultimately he
wanted control more control over Tesla to pursue the kind
of what he thinks are very valuable pursuits for his
kind of dreams, his vision around artificial intelligence, driverless vehicles.
So he will effectively be able to double his stake
(11:25):
and have more control over Tesla. So this is probably
the most important thing for him. And yeah, now he
has the backing from an overwhelming level of shareholders.
Speaker 1 (11:35):
And with that backing in place, then does that give
Elon Musk license to you know, tie in some of
his other businesses as well. There was some talk of
that around this shareholder vote too.
Speaker 9 (11:45):
Oh absolutely, I think for for el Musk, you know,
given he wears many hats, and has many roles this,
you know, this is a huge mandate for him and
obviously for Musk on stage talking to shareholders overnight flow
to the idea of of listing more of his companies
as well. So all of this, all of these things
(12:05):
to tie together, you know, will ultimately make him a
more powerful person and might ultimately help Tesla as well
as you know, if all of the ecosystems that Elil
Musk touches just becomes ever more valuable.
Speaker 2 (12:19):
Yeah, it's a very interesting story, Danny. Thank you so
much for explaining it to us. Our transport reporter Danny
Lee there on Tesla and the big new pay package
that Elon Musk could secure. Stay with us. More from
Bloomberg Day BAQUB coming up after this. The UK's two
(12:40):
five hundred private schools are under pressure, this after the
last year's tax increase on fees backed by the government.
Though a recent booming British schools opening branches abroad has
proven lucrative, but some of the expansions have come with
some unsavory business partners and the potential for reputational damage.
Blomb Bigs team added by joins us now with this story.
(13:02):
Tima why are these schools so keen on opening branches
abroad overseas well?
Speaker 10 (13:08):
Quite frankly, a lot of them are looking for fresh
revenue streams.
Speaker 2 (13:11):
In a lot of cases, these.
Speaker 8 (13:12):
Schools are very prestigious.
Speaker 10 (13:14):
They've got centuries old brands and now some of them
are looking to capitalize on that. And it's a sector
that's booming. We've seen a tripling of the number of
British school campuses opening abroad since twenty seventeen. It's up
from fifty one to one hundred and fifty one. And
in terms of profits they've also exploded recently. It's up
eighteen times over the last decade, reaching twenty nine million
(13:36):
pounds in the last academic year. And for private schools
with charitable status, as most of them do have in
the UK, they don't pay corporation tax on overseas earning,
so they're keeping a good proportion of this income. And
when you also couple that with the fact that most
British schools who open abroad work with foreign business partners
on the ground who are able to assume most of
(13:57):
the costs associated with launching, it does make for quite
an attractive opportunity. And there's also demand from the parents
abroad who otherwise would be sending their children overseas to
the UK.
Speaker 8 (14:10):
This is a cheaper option.
Speaker 10 (14:11):
It allows them to still access that British education but
on their doorstep, and crucially, it allows them to pay
the fees in their local currency, and that makes a
big difference when you do take into account exchange rates
and looking back to the UK perspective and the landscape
over here, you've got cost pressures tied to the government's
introduction of vat on school fees. You mentioned. Pupils are
(14:35):
leaving the system at an accelerated rate according to these
private schools, and there's high inflation. So you can begin
to see why setting up shop abroad does become attractive.
Speaker 1 (14:45):
What are the risks, though, Tea, for these schools of
going into business with foreign partners.
Speaker 10 (14:50):
Well, these are the sorts of institutions that have educated
prime ministers, for example. Some of them have brands that
are so strong they're almost sort of intertwined with the
Britain to identity and history, and so I think the
main risk here is denting that image, specifically through the
association with foreign business partners. In the story about this,
(15:11):
which is out on the terminal. This morning, we cover
several openings like Rugby School in Lagos, Nigeria this September.
That's a project that's been financed by a firm called
the Chaggery Group. Their founder has faced several controversies. Just
one example is that he had to pay one point
eight million dollars to resolve allegations that he and others
(15:31):
violated US election laws in twenty twenty one, and that's
according to the US Department of Justice.
Speaker 8 (15:37):
There's also openings elsewhere.
Speaker 10 (15:38):
For example, Harrow's School is due to opening New York soon,
and that's been backed by an Indian firm called Amite
Education Group. That group had one of its business school
licenses revoked by Indian regulators back in two thousand and five,
and since then they've also been heavily criticized by US
politicians about this upcoming New York opening. One of them
(16:01):
said they were really skeptical about Amiti's ability to educate
US students, just given its lack of track record in
the country. So with these business partners, I think schools
aren't just risking their reputations here, they're also risking the
trust of customers both abroad and in the UK who
are paying significant amounts of money to access that history
(16:22):
and what they believe is also a higher standard of education.
But perhaps what they don't expect is proximity to controversy,
especially through the foreign actors.
Speaker 2 (16:33):
The thing I found interesting about your reporting and then
I didn't really know is how the UK government is
actually involved in the process when it comes to opening
these schools abroad. Yeah.
Speaker 10 (16:43):
I mean it's been for some time now quite an
explicit strategy under Theresa May's government. The Department for Business
and Trade actually did have a document about their international
education strategy and as part of this they planned to
encourage private schools from the UK to access international opportunities
and they did this by connecting providers and investors, and
(17:07):
this is actually still the case. I've spoken to the
DBT and they told me that they still do help
to introduce those schools that are interested in growing abroad
to potential business partners. They did stress that they do
encourage the schools to undertake their own due diligence. In
the case of Rugby in Lagos, for example, that project
seems to have received at least the stamp of approval
(17:29):
from the British High commission They sent a delegation to
visit the campus over the summer, and the High Commissioner
described it as an outstanding example of UK Nigeria collaboration.
But the government is also supported by people on the ground,
often known as export champions, and they're volunteers who are
experienced UK exporters who support other businesses in their international
(17:51):
trade journeys. I spoke to one of those people for
this story who worked closely with the government on the
opening of several schools abroad recently, and so it definitely
seems like this is still a priority for the government.
And perhaps that's not surprising because increasing exports is something
the Chancellor has discussed and is already part of her
(18:12):
economic strategy, so it's likely we'll see the government continue
to be involved in this process.
Speaker 2 (18:17):
Yeah, really fascinating. Tiba Adabaio, thank you so much for
your reporting British private schools chase new money in New
York and Singapore. It's on the front page of the
Bloomberg dot co dot UK website and on the terminal.
Thank you.
Speaker 8 (18:29):
This is Bloomberg Daybreak Europe.
Speaker 1 (18:31):
You're morning brief on the stories making news from London
to Wall Street and beyond.
Speaker 2 (18:35):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (18:42):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (18:47):
Our flagship New York station, is also available on your
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I'm Caroline Hepke and.
Speaker 8 (18:56):
I'm Stephen Carroll.
Speaker 1 (18:57):
Join us again tomorrow morning for all the news need
to start your day right here on Bloomberg day Break
Europe
Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2 (00:09):
This is the BlueBag Day vi q At podcast. Good morning,
It's Friday, the seventh of November. I'm Caroline Hepcitt in
London and.
Speaker 1 (00:15):
I'm Stephen Caroline Brussels. Coming up today, Tesla shareholders approve
Elon Musk's record breaking one trillion dollar pay packet.
Speaker 2 (00:24):
Open Ai CEO Sam Altman rejects the need for government
bailouts as lofty tech valuations way on the market.
Speaker 1 (00:32):
Plus global studies how the UK's VAT squeeze is driving
Britain's top private schools to chase new money overseas.
Speaker 2 (00:41):
Let's start with a roundup of our top stories.
Speaker 1 (00:44):
Tesla's shareholders have approved a one trillion dollar compensation package
for CEO Elon Musk. More than seventy five percent of
votes were cast in favor of the payout. It clears
a path from Musk to expand his take in Tesla
to twenty five percent over the next Decade's Bloomberg TeX's
Ed Ludlow.
Speaker 3 (01:02):
For Elon Musk, this was about having more voting power
and voting control. And for those institutional investors that voted no,
they were worried about concentration of voting power that he
had and dilution for them. In the end, voters have
overwhelmingly come out seventy five percent of them or more
and said we're happy to hand over more control to
Elon Musk and keep him in the driver's seat to
(01:24):
realize these longer term goals in robotics in an autonomous.
Speaker 1 (01:28):
Driving Bloomberg's ed Ludlow. To achieve the full payout, Moscow
will have to deliver on targets to significantly expand Tesla's
market value. The company's shares were a little changed in
thursday's postmarket trading.
Speaker 2 (01:40):
Open AI's CEO Sam Altman says he doesn't want a
government bailout if the company's plans to spend one point
four trillion dollars on artificial intelligence go wrong. Writing on
social media, the boss of the world's most valuable startup
said he doesn't want government guarantees for its spending on
data centers. It comes after open AI's CFO Sarah Fryer
(02:03):
hinted at a role for the US government to backstop
financing for Ai in an interview on Wednesday. The comments
come as investors grow increasingly concerned over stretched AI valuations.
Ven Ram is Bloomberg's cross asset strategists.
Speaker 4 (02:19):
By now, it's kind of almost universally acknowledged that we
are margining steadily towards an equity bubble. BAC and P
five hundred is stating at twenty six times prospective earnings.
The Nasdaq hundred are staggering thirty two times. Those are
levels that are punitive and have seldom proved sustainable in
the past. The thing with this rally, the rally this year,
(02:39):
is that you know almost every investor knows it's all
going to turn into pumpkins and mice at midnight. Only,
as Buffett would say, no one in the room as
a clock.
Speaker 2 (02:48):
Ben Ram speaking there as the tech heavy Nasdaq felt
almost four percent from its record at the end of
last month, but it's still up nearly twenty percent so
far this year.
Speaker 1 (03:00):
Hungary's Prime Minister Victor Orban visits the White House later,
hoping his friendship with Donald Trump can spare his country
from US sanctions on Russian oil. Bloomberg's Micaul Cubala has more.
Speaker 5 (03:10):
A year after cheering Donald Trump's re election, Victor Orban
is coming to Washington with the raft of offers and
a request the Hungarian Prime minister wants a reprieve from
US sanctions on Russian oil. They threatened to raise fuel
prices back home and deepen troubles ahead of next year's election.
In Exchange, sources told Bloomberg he is coming to the
(03:31):
White House with pledges to purchase American leg and nuclear
fuel to scramble for deal. Marks an ironic turn for Orban.
He once counted on his ties to Trump for political gain,
but is now in damage control mode as the US
President titans penalties on Moscow. In Brussels, Michal Kubala Bloomberg
radio him.
Speaker 2 (03:51):
In the UK, the Bank of England has warned that
Chancellor Rachel Reeves will deliver her budget and made weak investment,
rising unemployment and slowing growth. Central Bank held interest rates
at four percent in a five to four vote that
laid the groundwork for a December cut. Yesterday, the Bank's Governor,
Andrew Bailey told Bloomberg that the UK's monetary policy still
(04:12):
remains restrictive for the moment now.
Speaker 6 (04:15):
In August, I would say I was concerned more on
the upside risk, but I think the news that we've
had subsequent to that has left me an a more
balanced possessions. So that was very much my view. But
as I said, as I've said a number of times,
we do need to see more evidence because so far
we've had one inflation number that's come in, you know,
under what we've orderally obviously good, we need to say
(04:37):
some more.
Speaker 2 (04:38):
That was the Bank of England Governor Andrew Bailey. He
went on to say that he is committed to serving
out his full eight year term as governor. His comments
came after afore UK Lee denied your Farage told bluebergs
Michelle Hussainin that the governor had had quote a.
Speaker 1 (04:54):
Good run comcasts and talks to buy ITV's media and
entertainment units in a deal that could value the business
at around two billion dollars. The conglomerate already owns rival
broadcaster Skies pay television business in Europe. Bloomberg understands the
same advisors who worked on that deal seven years ago,
Morgan Stanley and Roby Warshaw, are currently advising ITV. If
(05:15):
the deal does go through, the acquisition would dramatically shake
up the UK broadcasting landscape.
Speaker 2 (05:20):
Goldman Sachs is promoting the smallest proportion of women to
managing director level since the CEO, David Solomon took the
top job in twenty eighteen. Bloomberg's Ewen Potts has more Now.
Speaker 7 (05:33):
Goldman Sachs says that women make up twenty seven percent
of their new managing director class. That's down from thirty
one percent in the last set of similar promotions back
in twenty twenty three. It also breaks a trend of
consistent growth since twenty seventeen. CEO David Solomon's made numerous
public pledges to advance women and improve inclusivity, telling Congress
in twenty nineteen that a core part of his tenure
(05:56):
would be defined by that goal. In total, the bank
promoted six hundred eight staff to managing director. That's the
highest number in four years. In London, I'm you and
Pot's Spoomberg Radio.
Speaker 1 (06:06):
Those are your top stories on the markets this morning.
Eurostock's fifty futures up a tenth of one percent. The
mscis Your Pacific Index is down by nine tens of
one percent. The Nicka and Tokyo currently one point three
percent lower as well. Wall Street futures are higher three
tenths for SMP Mini futures this morning, the ten year
treasury yield up two basis points at four point one percent.
Speaker 2 (06:26):
In a moment, we'll bring you more on that staggering
pay deal that Tesla investors have approved for Elon Masker,
though obviously some strings and goals attached. Plus a special
report on how British private schools moves to expand abroad
haven't always gone exactly to plan. But another story is
also caught ari this morning voting for next year's Oscars.
(06:49):
It's not begun yet, but Bloomberg's Mark Ledorf has identified
some key titles to be watching out for. Will you
be watching any of these films, Stephen?
Speaker 1 (06:58):
I'm going to try to do better this year than
I have in previous years because I feel like I've
missed out on every important film over the past I
don't know, decades, so it may be time for me
to get back into it. The name that Mark says
to what is sentimental value? It's mostly in Norwegian. A
family drama about his family trying to figure out what
to do with the family home after their mother's death.
Sounds fascinating from the director Jokim Treer. Part of a
(07:22):
broader trend that Mark identifies of more top quality films
that aren't in English.
Speaker 8 (07:27):
This is something that we've seen creeping.
Speaker 1 (07:29):
Up through the oscars as well, you know, breaking out
of the international film category and into the mainstream as well.
And more productions being made in the US that are
multi lingual as well, think of Amelia Perez being one
recent example of those as well. You know, everything everywhere,
all at once, there's so many of them now we're
seeing more multi lingual versions and this Mark says it's
(07:50):
thanks to streamers. They're making more international content. People are
getting more used to reading subtitles, for example.
Speaker 8 (07:56):
And this has me internally cheering.
Speaker 2 (07:59):
Yeah, and maybe a bit of a stretch for me,
maybe for you also, Stephen, But no, you're right. I
think maybe this is one of the big unexpected benefits
of the streamers. You know, people sometimes are concerned about
the flattening of global culture and you know, everything sort
of being made for an international, global audience, but for
the streamers, largely in the US. But I think this
(08:19):
is the kind of unexpected benefit, isn't it that you
get to watch programs in all sorts of different languages.
Speaker 8 (08:25):
Well, look, maybe it's a piercing of the anglosphere.
Speaker 1 (08:27):
Maybe we're moving away from a position where you know,
only we only consume in English language cultures in English
language speaking countries, and certainly, as someone who've recently relocated
to an extremely multi lingual city where it's speaking two
languages is not enough. I think that it's, you know,
a great thing that we should all be excited about
expanding our cultural horizons.
Speaker 2 (08:47):
Love it. We will put a link to that story
in our show notes.
Speaker 1 (08:51):
Well, that's bringing more now on the story from Tesla
and the one trillion dollar pay package that was approved
for elon Moscar transport reporter Danny Lee joins us now
for more. Danny, more than seventy five percent of Tesla's
shareholders backed this. Was it an easy choice for them?
Speaker 9 (09:06):
I think for the individual shareholders, clearly big fans of Musk,
these are the typical kind of retail shareholders overwhelmingly would
have supported. But we saw this huge campaign over many weeks,
obviously led by chair Robin Denholm, to get people to
support this, including institutional shareholders. Of course, we've seen a
(09:26):
lot of advisory firms recommend voting against this pay package,
this outsized pay package for el Musk so there has
been a lot of deliberation, particularly online campaigning, for large
firms who hold test a stock to vote in favor,
and ultimately what potentially looked like was going to be
a very narrow vote was an overwhelming victory or consensus
(09:49):
that el Musk should be given such a goal, such
a juicy carrot, in order to carry out what he
wants to transform Tesla.
Speaker 2 (09:59):
Yeah. Absolutely, you know, it's been quite a sort of
bruising exchange, hasn't it in some ways? But as you say,
Musk does have to achieve quite a hefty series of
benchmarks in order to get this money. Just talk us
through the goals and actually how achievable they look now?
Speaker 9 (10:15):
Yeah, I think that the word to describe all of
this is very dizzying. Dizzying because Tesla right now is
a one point five trillion company. Elil Musk has to
take that to eight ft eight point five trillion, and
the kind of series of operational milestones he has to
subsequently achieve. For example, the high end is a four
hundred billion dollar adjusted to profitability. That's such a crazy number.
(10:41):
But you know, these are kind of the stretch goals
that the border is. So he also has to deliver
twenty million vehicles, sell a million robots and robotaxis. So
these are all things which are obviously clearly designed to
be stretched and it's not going to be an easy task.
Is as Eil Musk has been given this kind of
free reign to do what he needs. But at the
end of the day, this one trillion doesn't really matter
(11:02):
for el Musks so much. He was obviously recently awarded
thirty billion dollars by the Tesla board, but ultimately he
wanted control more control over Tesla to pursue the kind
of what he thinks are very valuable pursuits for his
kind of dreams, his vision around artificial intelligence, driverless vehicles.
So he will effectively be able to double his stake
(11:25):
and have more control over Tesla. So this is probably
the most important thing for him. And yeah, now he
has the backing from an overwhelming level of shareholders.
Speaker 1 (11:35):
And with that backing in place, then does that give
Elon Musk license to you know, tie in some of
his other businesses as well. There was some talk of
that around this shareholder vote too.
Speaker 9 (11:45):
Oh absolutely, I think for for el Musk, you know,
given he wears many hats, and has many roles this,
you know, this is a huge mandate for him and
obviously for Musk on stage talking to shareholders overnight flow
to the idea of of listing more of his companies
as well. So all of this, all of these things
(12:05):
to tie together, you know, will ultimately make him a
more powerful person and might ultimately help Tesla as well
as you know, if all of the ecosystems that Elil
Musk touches just becomes ever more valuable.
Speaker 2 (12:19):
Yeah, it's a very interesting story, Danny. Thank you so
much for explaining it to us. Our transport reporter Danny
Lee there on Tesla and the big new pay package
that Elon Musk could secure. Stay with us. More from
Bloomberg Day BAQUB coming up after this. The UK's two
(12:40):
five hundred private schools are under pressure, this after the
last year's tax increase on fees backed by the government.
Though a recent booming British schools opening branches abroad has
proven lucrative, but some of the expansions have come with
some unsavory business partners and the potential for reputational damage.
Blomb Bigs team added by joins us now with this story.
(13:02):
Tima why are these schools so keen on opening branches
abroad overseas well?
Speaker 10 (13:08):
Quite frankly, a lot of them are looking for fresh
revenue streams.
Speaker 2 (13:11):
In a lot of cases, these.
Speaker 8 (13:12):
Schools are very prestigious.
Speaker 10 (13:14):
They've got centuries old brands and now some of them
are looking to capitalize on that. And it's a sector
that's booming. We've seen a tripling of the number of
British school campuses opening abroad since twenty seventeen. It's up
from fifty one to one hundred and fifty one. And
in terms of profits they've also exploded recently. It's up
eighteen times over the last decade, reaching twenty nine million
(13:36):
pounds in the last academic year. And for private schools
with charitable status, as most of them do have in
the UK, they don't pay corporation tax on overseas earning,
so they're keeping a good proportion of this income. And
when you also couple that with the fact that most
British schools who open abroad work with foreign business partners
on the ground who are able to assume most of
(13:57):
the costs associated with launching, it does make for quite
an attractive opportunity. And there's also demand from the parents
abroad who otherwise would be sending their children overseas to
the UK.
Speaker 8 (14:10):
This is a cheaper option.
Speaker 10 (14:11):
It allows them to still access that British education but
on their doorstep, and crucially, it allows them to pay
the fees in their local currency, and that makes a
big difference when you do take into account exchange rates
and looking back to the UK perspective and the landscape
over here, you've got cost pressures tied to the government's
introduction of vat on school fees. You mentioned. Pupils are
(14:35):
leaving the system at an accelerated rate according to these
private schools, and there's high inflation. So you can begin
to see why setting up shop abroad does become attractive.
Speaker 1 (14:45):
What are the risks, though, Tea, for these schools of
going into business with foreign partners.
Speaker 10 (14:50):
Well, these are the sorts of institutions that have educated
prime ministers, for example. Some of them have brands that
are so strong they're almost sort of intertwined with the
Britain to identity and history, and so I think the
main risk here is denting that image, specifically through the
association with foreign business partners. In the story about this,
(15:11):
which is out on the terminal. This morning, we cover
several openings like Rugby School in Lagos, Nigeria this September.
That's a project that's been financed by a firm called
the Chaggery Group. Their founder has faced several controversies. Just
one example is that he had to pay one point
eight million dollars to resolve allegations that he and others
(15:31):
violated US election laws in twenty twenty one, and that's
according to the US Department of Justice.
Speaker 8 (15:37):
There's also openings elsewhere.
Speaker 10 (15:38):
For example, Harrow's School is due to opening New York soon,
and that's been backed by an Indian firm called Amite
Education Group. That group had one of its business school
licenses revoked by Indian regulators back in two thousand and five,
and since then they've also been heavily criticized by US
politicians about this upcoming New York opening. One of them
(16:01):
said they were really skeptical about Amiti's ability to educate
US students, just given its lack of track record in
the country. So with these business partners, I think schools
aren't just risking their reputations here, they're also risking the
trust of customers both abroad and in the UK who
are paying significant amounts of money to access that history
(16:22):
and what they believe is also a higher standard of education.
But perhaps what they don't expect is proximity to controversy,
especially through the foreign actors.
Speaker 2 (16:33):
The thing I found interesting about your reporting and then
I didn't really know is how the UK government is
actually involved in the process when it comes to opening
these schools abroad. Yeah.
Speaker 10 (16:43):
I mean it's been for some time now quite an
explicit strategy under Theresa May's government. The Department for Business
and Trade actually did have a document about their international
education strategy and as part of this they planned to
encourage private schools from the UK to access international opportunities
and they did this by connecting providers and investors, and
(17:07):
this is actually still the case. I've spoken to the
DBT and they told me that they still do help
to introduce those schools that are interested in growing abroad
to potential business partners. They did stress that they do
encourage the schools to undertake their own due diligence. In
the case of Rugby in Lagos, for example, that project
seems to have received at least the stamp of approval
(17:29):
from the British High commission They sent a delegation to
visit the campus over the summer, and the High Commissioner
described it as an outstanding example of UK Nigeria collaboration.
But the government is also supported by people on the ground,
often known as export champions, and they're volunteers who are
experienced UK exporters who support other businesses in their international
(17:51):
trade journeys. I spoke to one of those people for
this story who worked closely with the government on the
opening of several schools abroad recently, and so it definitely
seems like this is still a priority for the government.
And perhaps that's not surprising because increasing exports is something
the Chancellor has discussed and is already part of her
(18:12):
economic strategy, so it's likely we'll see the government continue
to be involved in this process.
Speaker 2 (18:17):
Yeah, really fascinating. Tiba Adabaio, thank you so much for
your reporting British private schools chase new money in New
York and Singapore. It's on the front page of the
Bloomberg dot co dot UK website and on the terminal.
Thank you.
Speaker 8 (18:29):
This is Bloomberg Daybreak Europe.
Speaker 1 (18:31):
You're morning brief on the stories making news from London
to Wall Street and beyond.
Speaker 2 (18:35):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (18:42):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (18:47):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepke and.
Speaker 8 (18:56):
I'm Stephen Carroll.
Speaker 1 (18:57):
Join us again tomorrow morning for all the news need
to start your day right here on Bloomberg day Break
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