June 11, 2025 • 17 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Chancellor of the Exchequer Rachel Reeves will defend her fiscal choices and trumpet billions of pounds of infrastructure investment in the UK spending review on Wednesday, as Keir Starmer’s government seeks to regain momentum after a faltering first year in power.
(2) The US and China agreed to a preliminary plan to ease trade tensions, which could revive the flow of sensitive goods between the world’s two largest economies.
(3) Donald Trump can continue to enforce his global tariffs for now, a federal appeals court held in a win for the president on one of his signature economic policies.
(4) European Central Bank Governing Council member Yannis Stournaras said the US’s unpredictable behavior on tariffs is undermining the dollar’s status as the global reserve currency and is an opportunity for the euro, according to an interview in Handelsblatt.
(5) Secretary of State Marco Rubio rebuked five allies over sanctions they imposed on two members of Israel’s cabinet as fissures between the US and its partners widen over the war in Gaza and the treatment of Palestinians.
(6) Curfew area will be about one square mile in downtown, and runs from 8pm to 6am, Los Angeles mayor Karen Bass says at a press conference.
Podcast Conversation: Sony’s Bet on Sports Pays Off With AI Line Judges at Wimbledon
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. This is the.
Speaker 2 (00:10):
Bluemberg Day BAQ podcast, available every morning on Apple, Spotify
or whatever you listen. It's Wednesday, the eleventh of June.
Speaker 3 (00:16):
Here in London.
Speaker 2 (00:17):
I'm Caroline Hepcare and.
Speaker 1 (00:19):
I'm Stephen Carroll. Coming up today, the UK's Chancellor, Rachel
Reeves prepares to unveil her plan for hundreds of billions
of pounds of government spending and investment.
Speaker 2 (00:28):
The US and China agree moves to ease trade tensions
between the world's two biggest economies.
Speaker 1 (00:34):
Plus more than an academic exercise. Publishers scramble for AI
partnerships as funding drives up.
Speaker 2 (00:40):
Let's start with a roundup of our top stories.
Speaker 1 (00:43):
The UK's Chancellor, Rachel Reeves, will unveil plans for trillions
of pounds in public spending and a speech later today.
The Spending Review will decide the three year budgets for
all government departments and see the Chancellor potentially allocate an
extra one hundred and thirteen billion pounds she has available
for investment. She says the government is going to actively
invest to create growth.
Speaker 4 (01:03):
This government is going for growth because that is the
best way to create jobs, boost wages, lift people out
of poverty, and sustainably fund our schools and our hospitals
and all the public services re rely on. And we're
doing things differently because, unlike the Tories, I don't think
that the only good thing that a government can do
(01:23):
is get out of the way. I believe in an
active government.
Speaker 1 (01:28):
But Reeves's plans are also likely to include real terms
cuts to some departments outside of protected spending on health,
education and defense. Since taking power, Revesa's popularity ratings have
fallen to the same levels as those of former Tory
Chancellor Quasi Quarteng after his disastrous mini budget in twenty
twenty two, according to surveys from IPSOS.
Speaker 2 (01:49):
Now, let's talk about Blackstone, which plans to invest as
much as five hundred billion dollars in Europe over the
next decade. The world's largest alternative asset manager is already
the law just fund manager in European real estate chairman
Steve Schwarzman has told Bloomberg the continent is becoming attractive
to investors.
Speaker 5 (02:08):
They're starting to change their approach here, which we think
could result in in higher growth rates. So this has
worked out amazingly well for US.
Speaker 2 (02:21):
Schwartzman also said that the UK government had been really
helpful and really focused on enabling investment. The firm has
about one hundred billion dollars invested in Britain already, making
it one of the largest foreign investors in the country.
Speaker 1 (02:35):
The United States and China have agreed on a preliminary
plan to ease trade tensions. American and Chinese negotiators in
London said both sides agreed on a framework for how
to implement the consensus they reached in the prior round
of talks. Here's US Commerce Secretary Howard Lutnik speaking to
reporters after the negotiations ended.
Speaker 6 (02:54):
The two largest economies in the world have reached a handshake,
right for a frame work. We're going to start to
implement that framework upon the approval of President Trump and
the Chineese will get their President Cheese approval and that's
the process. So once the President's approve it, we will
then seek to implement it.
Speaker 1 (03:15):
Howard Lutnick speaking there. While full details of the agreement
haven't yet been made available, US negotiators said they absolutely
expected that issues around shipments of rare earth minerals and
magnets would be resolved. The Chinese Foreign Ministry and Ministry
for Commerce didn't immediately respond to requests for comment on
the nature of the agreement.
Speaker 2 (03:35):
Meanwhile, a US federal appeals court has ruled that President
Trump can continue to enforce his global tariffs. The order
extends an earlier short term reprieve and delivers a win
for one of the administration's signature economic policies. Tuesday's order
comes a month before Trump's own night day pause on
most of his tariffs is set to expire on the
(03:56):
ninth of July. US tariff rates will increase rastically for
many nations, with the EU facing a fifty percent levee
if a deal can't be struck and no extension is offered. Well.
Speaker 1 (04:08):
Meanwhile, the European Central Bank President Christine Leguard is warning
against the use of what she calls coercive trade policies.
She was speaking at an event in China's global uncertainty
around trade remains at an all time high. Bloomberoks team
at a BAIO has more.
Speaker 7 (04:22):
Christine Legard didn't mention Donald Trump by name, but his
tariffs loomed over her speech. The ECB president told an
audience at China's Central Bank that there's no longer term
advantage to being a bully on trade. She warned against
mutually damaging protectionist policies, instead urging countries to work together.
Her comments come as a chorus of European central bankers
(04:45):
have been highlighting the opportunity to boost the international role
of the euro amid the upheaval in US policy. In London.
Speaker 3 (04:53):
To you add a Bio Bloomberg Radio, the.
Speaker 2 (04:56):
U S Secretary of State has criticized the UK, Canada, Norway,
New Zealand and Australia for imposing sanctions on two Israeli
cabinet members. In a statement, Marco Rubio said that the
move doesn't advance US led efforts to achieve a cease far.
The comments come after the countries chose to sanction Israeli
National Security Minister Ismar ben Gvir and the Finance Minister
(05:21):
a Bazilil Shmotrich in their personal capacity for inciting violence
against Palestinian communities last year. Smutrich suggested it may be
justified and moral to starve Garzan's while ben Vere earlier
praised violent settlers suspected of murdering a teenager in the
West Bank as quote heroes.
Speaker 1 (05:43):
The mayor of Los Angeles has imposed a nighttime curfew
as officials attempt to stop vandalism and looting following protests
over immigration raids. Almost three hundred and eighty people have
been arrested in the area since the weekend, amid clashes
between police and demonstrators. Mayor Karen Bass says the restrictions
will be in force in the downtown area of the
city and will be repeated in the coming days.
Speaker 8 (06:04):
So my message to you is, if you do not
live or work in downtown La, avoid the area. Law
enforcement will arrest in the visuals who break the curfew
and you will be prosecuted.
Speaker 1 (06:17):
The move by LA Mayor Karen Bass comes after marines
deployed by President Trump arrived in the Los Angeles area
with orders to protect federal property and officers. California's Governor
Gavin Newsom has accused Trump of misusing his power by
mobilizing the troops and warned other states to prepare for
similar unrest.
Speaker 2 (06:36):
Those are our top stories for you this morning. Let's
think about the market. Then, after a couple of days
of US China trade talks, they seem to have diffuse
some tensions, although few details actually about what the agreement
is really going to mean. Practically, stock futures for the
US are in the red on the S and P
five hundred emanies down three tenths of one percent. US
fifty futures also down four tens of one percent. This morning,
(06:58):
the dollar is strengthening against most currency's number of ECB
officials making a play for the euro, including the Greek
Central Bank governor Yannis Sornaras.
Speaker 3 (07:08):
Also today, you've got.
Speaker 2 (07:10):
The US inflation data to US rate cuts now expected
for this year. Tenure treasury yields right now trading flat
at four forty seven. Those are the market.
Speaker 3 (07:19):
Stephen.
Speaker 1 (07:20):
In a moment, we'll tell you what to expect from
today's UK government spending review. Plus that deals with AI
companies that are providing a new wave publishing firms to
make money. But another story that Carter II this morning,
counting down to the start of Wimbledon nineteen days away
by my rough calculation.
Speaker 2 (07:36):
Yes, it's always the last week in June, first week
in July.
Speaker 1 (07:39):
So Tennis present, strawberries and cream present, but not present.
Referees are well line judges.
Speaker 2 (07:46):
Yeah lie yeah, Linemen and line women will not be
there in their traditional garb. It's very unusual, but it
has been something that has been coming for a number
of years. This is the fact that Sony's Hawkie is
going to be used now exclusively to decide whether the
ball is in or out. So they're going to use
(08:07):
twelve on court cameras for this. It's already in use
in the Australian Open, the US Open, and it has
been at Wimbledon for a long time. But now actually
the human element is going to disappear, which, yeah, it's
sort of the end of a tradition, but perhaps more
acagecy maybe yeah.
Speaker 1 (08:23):
And actually there's some benefits being yielded also for a
long investment by Sony in this area of technology as well.
So interesting to see how people will feel about that.
A notable absence from the sidelines at Wimbledon this year. Well,
let's turn to our top story now and the Chancellor
of Rachel Reeves will deliver the government's spending Review this
afternoon with detailed plans for public spending until the end
(08:44):
of the decade. For more details, our UK politic supporter
of James Wilcock is here. James good mornings. The government
has already announced a lot of infrastructure and investment spending.
What do we know so far about what we'll hear today.
Speaker 9 (08:56):
Well, yes, they've announced one hundred and thirteen billion pounds
is going to be announced here in terms of capital spending.
Of that, thirty ten billion in housing, fifteen billion in rail.
That's what they want to talk about. That's the fun stuff,
that's the new goodies. The other side of this, though,
is that this is where we hear more than six
billion pounds a year is going to come in annual
spending in all the government departments. I mean, that's roughly
(09:17):
a fifth of the UK economy. Just to put it
in perspective. Now we know some of those figures already.
We know the NHS is going to get two hundred
billion pounds per year, Education ninety four, Defense thirty nine billion.
But all of this is to say that in some
ways this is cafting a political die because for the
next general action, the economics of what the public sector
(09:40):
looks like. We find that out today.
Speaker 2 (09:43):
Yeah, because as you say, education, health and defense are
there ring fence departments the ones that get the money,
whereas everybody else is facing a massive squeeze and the
government's finances are very very tough so in terms of
the real term spending cut, so it's going to be difficult.
Speaker 9 (10:01):
Yeah, and education and health are two of kissed armas
sort of big missions for government in labor, but there
are other ones crime, migration, and it'd be very intened
to see. They've said roughly that one point two percent
is the amount departments have got to work with increases.
If health, which is by far the biggest department coloss
or spend, is getting that much of an increase, you
are going to see potentially even double digit cut percentage
(10:24):
cuts in other departments and we'll be watching to see
where those come. Another side of the caroline just in terms
of like where this money is going, is a lot
of it's going to be spent outside London. In terms
of the infrastructure investment, Rachel Reeves is pushing rail investment
in the North and the other side as well. The
ft reporting one in ten civil servants jobs could be
on the line as they seek to make things more efficient.
(10:45):
It's not a small review. The last one happened during COVID.
This is kind of where we see how the shape
of the UK state evolves for the next sort of
three to five years.
Speaker 1 (10:56):
Yeah, indeed Alva's been reporting our colleague on how long
and Thecaeity, the London Mayor isn't happy about how the
spending is going to go in his direction. Anyway. Let's
talk about though, what this means for the Chancellor of
Rachel Reeves of course, has been at the forefront of
some of the most difficult decisions this Labor government has
had to make.
Speaker 9 (11:14):
Completely and if to put it in perspective, ipsos are
polled this week, So the Chancellor is now as unpopular
as former Chancellor Kazi Quateng after he delivered the mini
budget that is an expressive low and the party are
aware that it's very rare for the little party to
become so unpopular so quickly. So this moment for the
Chancellor ract of Reeves is the party has pinned its
(11:35):
hopes on gross and unlike the Conservatives, Labour see the
government taking an active role in driving growth forward. I
think today we find out what the comeback plan is,
what the government actually sees as its priorities when it's
forced to put its money where its mouth is, and
if they are big spenders, many economists would say today
may make taxizers in the autumn start to look inevitable.
Speaker 2 (12:00):
Yeah, that's certainly thinking about the next few months. James,
thank you so much for being with us this morning.
Are UK Politics? Report to James Wallcock then on what
to expect twelve thirty lunchtime today, the chance of Rachel
reeves with the spending review.
Speaker 1 (12:14):
Now the face of artificial intelligence, publishers are both fighting
against and joining forces with AI companies. A number of
academic publishers have signed or are looking at licensing deals
to provide access to their libraries and generate new revenue.
Joining us now for details of this story, it is
EMEA Earning Specials. Choe, Mela Chloe, good morning, great.
Speaker 8 (12:32):
To see you.
Speaker 1 (12:33):
So where do licensing deals between publishers and AI companies
come from and what exactly do these partnerships entail.
Speaker 10 (12:40):
So what we've seen over the last few months is
academic publishers making and as you say, also exploring those
deals with AI companies.
Speaker 3 (12:47):
Those are licensing deals.
Speaker 10 (12:48):
So what that means is that the academic publisher is
essentially giving access to their library so that AI companies
can train their AI chatbots on that content. We've seen
Taylor and Francis, which is part of informed UK listed company,
making seventy five million dollars last year from those licensed
in deals. Over in the US, Wiley has made about
fifteen million to date, and Bloomsbury also recently said in
(13:11):
its slightest set of results that they were exploring those deals.
So it seems to be happening kind of across the
board For academic publishers.
Speaker 3 (13:20):
A key thing to note is that, as you say.
Speaker 10 (13:21):
These agreements are part of a broader trend of a
really hot and cold relationship between AI companies and publishers.
Speaker 3 (13:28):
If we go beyond academic.
Speaker 10 (13:29):
Publishing, for instance, and we look at a news publisher
like The New York Times, it recently reached a deal
to license its editorial content to Amazon while also having
spent years fighting open Ai in core as a copyright infringement.
So we've seen those deals happen as the publishers across
the board are really trying to prevent AI companies from
(13:51):
scraping the web without providing that fair compensation.
Speaker 3 (13:54):
The idea is.
Speaker 10 (13:55):
That licensing is a kind of a way out of
litigation and making everyone, or at least you know, more
than one party. Happy AA companies get the content that
they need and the publishers get the money.
Speaker 7 (14:07):
Yeah.
Speaker 2 (14:07):
Although what I found striking about this story is actually,
when we're talking about the billions going into AI, that
these deals don't sound enormous in terms of millions of
dollars in terms of Also the other angle to this,
President Trump's war effectively on academia, how is that kind
of maybe fueling some of these decisions also maybe to
(14:28):
pursue the aideals amongst these academic publishers.
Speaker 3 (14:32):
Yeah.
Speaker 10 (14:32):
Absolutely, So the research funding cuts that the Trump administration
is pushing for really adds another layer. Obviously, the cut
to that research budget is something that will affect academic publishers,
but those aideals could provide an offset. So William Larwood,
who's an analyst at Berenberg, calculated that about a forty
percent cut to the budget for the National Institute of Health,
(14:55):
which is the cut that the administration is pushing for,
would result in a forty five million dollar head and
revenue head to win for Taylor and Francis, which is
obviously not negligible, but he said that as those aids
could provide that that offset if we look at the numbers,
the underlying revenue growth for Taylor and Francis was fifteen
percent in twenty twenty four, and that's up way up
(15:16):
from three percent the year prior, and he said that
without those aideals, it would have been closer to three
point five. So this points to perhaps more academic publishers
seeing this and rushing to carve out this kind of
new and quite lucrative revenue stream to counteract the impact
of the funding cuts.
Speaker 3 (15:32):
I mean, what when we're.
Speaker 1 (15:33):
Thinking about these deals with AI companies as well, is
it a bit of a deal with the devil for
these publishing companies as well? How are they kind of
addressing some of the challenges around them.
Speaker 10 (15:41):
Yeah, So the problem here is that obviously not everyone
is delighted.
Speaker 3 (15:46):
There's the ideals. I've received a lot of.
Speaker 10 (15:48):
Backlash from academic authors, in particular on two key points,
consent and compensation. So authors have said that they were
not asked for permission and that they were not given
fair payments in some cases. So we know what authors
have gotten from certain deals. So Microsoft offered HarperCollins five
thousand dollars per title, half of which went to the author,
(16:10):
but I spoke to Mary Raisenberger, who's the CEO of
the Author's Guild, and she said that this kind of
known ballpark in terms of what authors can expect, and
an author was page just ninety seven dollars for example
for their book recently by Darian Francis. The problem is
the more existential problem of academic publishers kind of accelerating
their own placement by AI.
Speaker 1 (16:33):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:39):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:45):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:51):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 1 (17:00):
I'm Stephen Carol. 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. This is the.
Speaker 2 (00:10):
Bluemberg Day BAQ podcast, available every morning on Apple, Spotify
or whatever you listen. It's Wednesday, the eleventh of June.
Speaker 3 (00:16):
Here in London.
Speaker 2 (00:17):
I'm Caroline Hepcare and.
Speaker 1 (00:19):
I'm Stephen Carroll. Coming up today, the UK's Chancellor, Rachel
Reeves prepares to unveil her plan for hundreds of billions
of pounds of government spending and investment.
Speaker 2 (00:28):
The US and China agree moves to ease trade tensions
between the world's two biggest economies.
Speaker 1 (00:34):
Plus more than an academic exercise. Publishers scramble for AI
partnerships as funding drives up.
Speaker 2 (00:40):
Let's start with a roundup of our top stories.
Speaker 1 (00:43):
The UK's Chancellor, Rachel Reeves, will unveil plans for trillions
of pounds in public spending and a speech later today.
The Spending Review will decide the three year budgets for
all government departments and see the Chancellor potentially allocate an
extra one hundred and thirteen billion pounds she has available
for investment. She says the government is going to actively
invest to create growth.
Speaker 4 (01:03):
This government is going for growth because that is the
best way to create jobs, boost wages, lift people out
of poverty, and sustainably fund our schools and our hospitals
and all the public services re rely on. And we're
doing things differently because, unlike the Tories, I don't think
that the only good thing that a government can do
(01:23):
is get out of the way. I believe in an
active government.
Speaker 1 (01:28):
But Reeves's plans are also likely to include real terms
cuts to some departments outside of protected spending on health,
education and defense. Since taking power, Revesa's popularity ratings have
fallen to the same levels as those of former Tory
Chancellor Quasi Quarteng after his disastrous mini budget in twenty
twenty two, according to surveys from IPSOS.
Speaker 2 (01:49):
Now, let's talk about Blackstone, which plans to invest as
much as five hundred billion dollars in Europe over the
next decade. The world's largest alternative asset manager is already
the law just fund manager in European real estate chairman
Steve Schwarzman has told Bloomberg the continent is becoming attractive
to investors.
Speaker 5 (02:08):
They're starting to change their approach here, which we think
could result in in higher growth rates. So this has
worked out amazingly well for US.
Speaker 2 (02:21):
Schwartzman also said that the UK government had been really
helpful and really focused on enabling investment. The firm has
about one hundred billion dollars invested in Britain already, making
it one of the largest foreign investors in the country.
Speaker 1 (02:35):
The United States and China have agreed on a preliminary
plan to ease trade tensions. American and Chinese negotiators in
London said both sides agreed on a framework for how
to implement the consensus they reached in the prior round
of talks. Here's US Commerce Secretary Howard Lutnik speaking to
reporters after the negotiations ended.
Speaker 6 (02:54):
The two largest economies in the world have reached a handshake,
right for a frame work. We're going to start to
implement that framework upon the approval of President Trump and
the Chineese will get their President Cheese approval and that's
the process. So once the President's approve it, we will
then seek to implement it.
Speaker 1 (03:15):
Howard Lutnick speaking there. While full details of the agreement
haven't yet been made available, US negotiators said they absolutely
expected that issues around shipments of rare earth minerals and
magnets would be resolved. The Chinese Foreign Ministry and Ministry
for Commerce didn't immediately respond to requests for comment on
the nature of the agreement.
Speaker 2 (03:35):
Meanwhile, a US federal appeals court has ruled that President
Trump can continue to enforce his global tariffs. The order
extends an earlier short term reprieve and delivers a win
for one of the administration's signature economic policies. Tuesday's order
comes a month before Trump's own night day pause on
most of his tariffs is set to expire on the
(03:56):
ninth of July. US tariff rates will increase rastically for
many nations, with the EU facing a fifty percent levee
if a deal can't be struck and no extension is offered. Well.
Speaker 1 (04:08):
Meanwhile, the European Central Bank President Christine Leguard is warning
against the use of what she calls coercive trade policies.
She was speaking at an event in China's global uncertainty
around trade remains at an all time high. Bloomberoks team
at a BAIO has more.
Speaker 7 (04:22):
Christine Legard didn't mention Donald Trump by name, but his
tariffs loomed over her speech. The ECB president told an
audience at China's Central Bank that there's no longer term
advantage to being a bully on trade. She warned against
mutually damaging protectionist policies, instead urging countries to work together.
Her comments come as a chorus of European central bankers
(04:45):
have been highlighting the opportunity to boost the international role
of the euro amid the upheaval in US policy. In London.
Speaker 3 (04:53):
To you add a Bio Bloomberg Radio, the.
Speaker 2 (04:56):
U S Secretary of State has criticized the UK, Canada, Norway,
New Zealand and Australia for imposing sanctions on two Israeli
cabinet members. In a statement, Marco Rubio said that the
move doesn't advance US led efforts to achieve a cease far.
The comments come after the countries chose to sanction Israeli
National Security Minister Ismar ben Gvir and the Finance Minister
(05:21):
a Bazilil Shmotrich in their personal capacity for inciting violence
against Palestinian communities last year. Smutrich suggested it may be
justified and moral to starve Garzan's while ben Vere earlier
praised violent settlers suspected of murdering a teenager in the
West Bank as quote heroes.
Speaker 1 (05:43):
The mayor of Los Angeles has imposed a nighttime curfew
as officials attempt to stop vandalism and looting following protests
over immigration raids. Almost three hundred and eighty people have
been arrested in the area since the weekend, amid clashes
between police and demonstrators. Mayor Karen Bass says the restrictions
will be in force in the downtown area of the
city and will be repeated in the coming days.
Speaker 8 (06:04):
So my message to you is, if you do not
live or work in downtown La, avoid the area. Law
enforcement will arrest in the visuals who break the curfew
and you will be prosecuted.
Speaker 1 (06:17):
The move by LA Mayor Karen Bass comes after marines
deployed by President Trump arrived in the Los Angeles area
with orders to protect federal property and officers. California's Governor
Gavin Newsom has accused Trump of misusing his power by
mobilizing the troops and warned other states to prepare for
similar unrest.
Speaker 2 (06:36):
Those are our top stories for you this morning. Let's
think about the market. Then, after a couple of days
of US China trade talks, they seem to have diffuse
some tensions, although few details actually about what the agreement
is really going to mean. Practically, stock futures for the
US are in the red on the S and P
five hundred emanies down three tenths of one percent. US
fifty futures also down four tens of one percent. This morning,
(06:58):
the dollar is strengthening against most currency's number of ECB
officials making a play for the euro, including the Greek
Central Bank governor Yannis Sornaras.
Speaker 3 (07:08):
Also today, you've got.
Speaker 2 (07:10):
The US inflation data to US rate cuts now expected
for this year. Tenure treasury yields right now trading flat
at four forty seven. Those are the market.
Speaker 3 (07:19):
Stephen.
Speaker 1 (07:20):
In a moment, we'll tell you what to expect from
today's UK government spending review. Plus that deals with AI
companies that are providing a new wave publishing firms to
make money. But another story that Carter II this morning,
counting down to the start of Wimbledon nineteen days away
by my rough calculation.
Speaker 2 (07:36):
Yes, it's always the last week in June, first week
in July.
Speaker 1 (07:39):
So Tennis present, strawberries and cream present, but not present.
Referees are well line judges.
Speaker 2 (07:46):
Yeah lie yeah, Linemen and line women will not be
there in their traditional garb. It's very unusual, but it
has been something that has been coming for a number
of years. This is the fact that Sony's Hawkie is
going to be used now exclusively to decide whether the
ball is in or out. So they're going to use
(08:07):
twelve on court cameras for this. It's already in use
in the Australian Open, the US Open, and it has
been at Wimbledon for a long time. But now actually
the human element is going to disappear, which, yeah, it's
sort of the end of a tradition, but perhaps more
acagecy maybe yeah.
Speaker 1 (08:23):
And actually there's some benefits being yielded also for a
long investment by Sony in this area of technology as well.
So interesting to see how people will feel about that.
A notable absence from the sidelines at Wimbledon this year. Well,
let's turn to our top story now and the Chancellor
of Rachel Reeves will deliver the government's spending Review this
afternoon with detailed plans for public spending until the end
(08:44):
of the decade. For more details, our UK politic supporter
of James Wilcock is here. James good mornings. The government
has already announced a lot of infrastructure and investment spending.
What do we know so far about what we'll hear today.
Speaker 9 (08:56):
Well, yes, they've announced one hundred and thirteen billion pounds
is going to be announced here in terms of capital spending.
Of that, thirty ten billion in housing, fifteen billion in rail.
That's what they want to talk about. That's the fun stuff,
that's the new goodies. The other side of this, though,
is that this is where we hear more than six
billion pounds a year is going to come in annual
spending in all the government departments. I mean, that's roughly
(09:17):
a fifth of the UK economy. Just to put it
in perspective. Now we know some of those figures already.
We know the NHS is going to get two hundred
billion pounds per year, Education ninety four, Defense thirty nine billion.
But all of this is to say that in some
ways this is cafting a political die because for the
next general action, the economics of what the public sector
(09:40):
looks like. We find that out today.
Speaker 2 (09:43):
Yeah, because as you say, education, health and defense are
there ring fence departments the ones that get the money,
whereas everybody else is facing a massive squeeze and the
government's finances are very very tough so in terms of
the real term spending cut, so it's going to be difficult.
Speaker 9 (10:01):
Yeah, and education and health are two of kissed armas
sort of big missions for government in labor, but there
are other ones crime, migration, and it'd be very intened
to see. They've said roughly that one point two percent
is the amount departments have got to work with increases.
If health, which is by far the biggest department coloss
or spend, is getting that much of an increase, you
are going to see potentially even double digit cut percentage
(10:24):
cuts in other departments and we'll be watching to see
where those come. Another side of the caroline just in terms
of like where this money is going, is a lot
of it's going to be spent outside London. In terms
of the infrastructure investment, Rachel Reeves is pushing rail investment
in the North and the other side as well. The
ft reporting one in ten civil servants jobs could be
on the line as they seek to make things more efficient.
(10:45):
It's not a small review. The last one happened during COVID.
This is kind of where we see how the shape
of the UK state evolves for the next sort of
three to five years.
Speaker 1 (10:56):
Yeah, indeed Alva's been reporting our colleague on how long
and Thecaeity, the London Mayor isn't happy about how the
spending is going to go in his direction. Anyway. Let's
talk about though, what this means for the Chancellor of
Rachel Reeves of course, has been at the forefront of
some of the most difficult decisions this Labor government has
had to make.
Speaker 9 (11:14):
Completely and if to put it in perspective, ipsos are
polled this week, So the Chancellor is now as unpopular
as former Chancellor Kazi Quateng after he delivered the mini
budget that is an expressive low and the party are
aware that it's very rare for the little party to
become so unpopular so quickly. So this moment for the
Chancellor ract of Reeves is the party has pinned its
(11:35):
hopes on gross and unlike the Conservatives, Labour see the
government taking an active role in driving growth forward. I
think today we find out what the comeback plan is,
what the government actually sees as its priorities when it's
forced to put its money where its mouth is, and
if they are big spenders, many economists would say today
may make taxizers in the autumn start to look inevitable.
Speaker 2 (12:00):
Yeah, that's certainly thinking about the next few months. James,
thank you so much for being with us this morning.
Are UK Politics? Report to James Wallcock then on what
to expect twelve thirty lunchtime today, the chance of Rachel
reeves with the spending review.
Speaker 1 (12:14):
Now the face of artificial intelligence, publishers are both fighting
against and joining forces with AI companies. A number of
academic publishers have signed or are looking at licensing deals
to provide access to their libraries and generate new revenue.
Joining us now for details of this story, it is
EMEA Earning Specials. Choe, Mela Chloe, good morning, great.
Speaker 8 (12:32):
To see you.
Speaker 1 (12:33):
So where do licensing deals between publishers and AI companies
come from and what exactly do these partnerships entail.
Speaker 10 (12:40):
So what we've seen over the last few months is
academic publishers making and as you say, also exploring those
deals with AI companies.
Speaker 3 (12:47):
Those are licensing deals.
Speaker 10 (12:48):
So what that means is that the academic publisher is
essentially giving access to their library so that AI companies
can train their AI chatbots on that content. We've seen
Taylor and Francis, which is part of informed UK listed company,
making seventy five million dollars last year from those licensed
in deals. Over in the US, Wiley has made about
fifteen million to date, and Bloomsbury also recently said in
(13:11):
its slightest set of results that they were exploring those deals.
So it seems to be happening kind of across the
board For academic publishers.
Speaker 3 (13:20):
A key thing to note is that, as you say.
Speaker 10 (13:21):
These agreements are part of a broader trend of a
really hot and cold relationship between AI companies and publishers.
Speaker 3 (13:28):
If we go beyond academic.
Speaker 10 (13:29):
Publishing, for instance, and we look at a news publisher
like The New York Times, it recently reached a deal
to license its editorial content to Amazon while also having
spent years fighting open Ai in core as a copyright infringement.
So we've seen those deals happen as the publishers across
the board are really trying to prevent AI companies from
(13:51):
scraping the web without providing that fair compensation.
Speaker 3 (13:54):
The idea is.
Speaker 10 (13:55):
That licensing is a kind of a way out of
litigation and making everyone, or at least you know, more
than one party. Happy AA companies get the content that
they need and the publishers get the money.
Speaker 7 (14:07):
Yeah.
Speaker 2 (14:07):
Although what I found striking about this story is actually,
when we're talking about the billions going into AI, that
these deals don't sound enormous in terms of millions of
dollars in terms of Also the other angle to this,
President Trump's war effectively on academia, how is that kind
of maybe fueling some of these decisions also maybe to
(14:28):
pursue the aideals amongst these academic publishers.
Speaker 3 (14:32):
Yeah.
Speaker 10 (14:32):
Absolutely, So the research funding cuts that the Trump administration
is pushing for really adds another layer. Obviously, the cut
to that research budget is something that will affect academic publishers,
but those aideals could provide an offset. So William Larwood,
who's an analyst at Berenberg, calculated that about a forty
percent cut to the budget for the National Institute of Health,
(14:55):
which is the cut that the administration is pushing for,
would result in a forty five million dollar head and
revenue head to win for Taylor and Francis, which is
obviously not negligible, but he said that as those aids
could provide that that offset if we look at the numbers,
the underlying revenue growth for Taylor and Francis was fifteen
percent in twenty twenty four, and that's up way up
(15:16):
from three percent the year prior, and he said that
without those aideals, it would have been closer to three
point five. So this points to perhaps more academic publishers
seeing this and rushing to carve out this kind of
new and quite lucrative revenue stream to counteract the impact
of the funding cuts.
Speaker 3 (15:32):
I mean, what when we're.
Speaker 1 (15:33):
Thinking about these deals with AI companies as well, is
it a bit of a deal with the devil for
these publishing companies as well? How are they kind of
addressing some of the challenges around them.
Speaker 10 (15:41):
Yeah, So the problem here is that obviously not everyone
is delighted.
Speaker 3 (15:46):
There's the ideals. I've received a lot of.
Speaker 10 (15:48):
Backlash from academic authors, in particular on two key points,
consent and compensation. So authors have said that they were
not asked for permission and that they were not given
fair payments in some cases. So we know what authors
have gotten from certain deals. So Microsoft offered HarperCollins five
thousand dollars per title, half of which went to the author,
(16:10):
but I spoke to Mary Raisenberger, who's the CEO of
the Author's Guild, and she said that this kind of
known ballpark in terms of what authors can expect, and
an author was page just ninety seven dollars for example
for their book recently by Darian Francis. The problem is
the more existential problem of academic publishers kind of accelerating
their own placement by AI.
Speaker 1 (16:33):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:39):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:45):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:51):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 1 (17:00):
I'm Stephen Carol. 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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