November 14, 2025 • 19 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) UK Chancellor Rachel Reeves is considering dropping plans to raise the headline rates of income tax and a slew of other levies in her upcoming budget.
(2) China’s economic activity cooled more than expected at the start of the fourth quarter with an unprecedented slump in investment and slower growth in industrial output.
(3) US President Donald Trump is readying substantial tariff cuts and trade deals as he seeks to address voter concerns over high food prices and the cost of goods.
(4) The BBC's Chairman Samir Shah has written to the White House expressing remorse to US President Donald Trump for a misleading documentary edit of his January 6th speech in 2021.
(5) EU officials are looking at how to transform the European Securities & Markets Authority into a more sweeping watchdog like the SEC in the United States.
Podcast Conversation: How to Get Your Vintage Timepiece Safely Serviced
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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.
Speaker 2 (00:09):
This is the Bloomberg Day bake At podcast. Good morning,
It's finday, the fourteenth of November. I'm Caroline Hepcitt in London.
Speaker 3 (00:15):
And I'm Stephen Caroline Brussels. Coming up today, the UK's
Chancellor Rachel Reeves considers abandoning plans to hike income tax
in her upcoming budget.
Speaker 2 (00:24):
An unprecedented slump in investment highlights China's filtering economy.
Speaker 3 (00:29):
Plus from watchdog to top dog, the EU prepares to
unveil plans for a major transfer of powers to its
markets regulator.
Speaker 2 (00:37):
Let's start with a roundup of our top stories.
Speaker 4 (00:40):
And what could be a major U turn.
Speaker 3 (00:41):
The British Chancellor Rachel Reeves is considering dropping plans to
raise the headline rates of income tax and several other
levies and the upcoming budget. The pound has weakened against
the dollar and the euro on the reports. The development
comes just days after the government lurched into a new
political crisis amid allegations the Prime Minister was about to
face a leadership challenge with Mura. Here's Bloomberg's Chrispas.
Speaker 5 (01:04):
Ten days ago, Rachel Reeves delivered what was a highly
unusual pre budget speech in which she declined to reiterate
Labour's manifesto commitment against broad based tax hikes, and just
this week she doubled down on those comments in this
BBC Radio interview.
Speaker 6 (01:22):
We are having to look at taxes and spending and
it's got to be both of those things. And the
speech I made last week was about setting the context
for the budget, which is a difficult one.
Speaker 5 (01:34):
But now, sources tell Bloomberg the Chancellor is considering not
going ahead with increases in either the basic or higher
income rates of tax, after internal concerns that such a
move would break a manifesto promise not to raise taxes
on working people. She's also understood to be reconsidering whether
(01:55):
to proceed with an exit tax on wealthy individuals leaving
the UK, all of which raises the question of hol
Reeves now plans to fill a black hole of as
much as thirty five billion pounds in her November twenty
sixth budget in London, Crispit Bloomberg Radio.
Speaker 2 (02:14):
Well now to China, where economic activity cooled more than
expected at the start of the fourth quarter. Data shows
an unprecedented slump in investment and slower growth in industrial output,
adding to a drag from sluggish consumption. Industrial production climbed
four point nine percent last month from a year earlier.
(02:34):
That was down from six and a half percent in September.
But City's CEO Jane Fraser has told Bloomberg that the
deals struck by Presidents Trump and Ji Jinping should now
help to ease economic relations between the world's two largest economies.
Speaker 1 (02:50):
I think the recent truth has brought some much needed
and welcome stability here. I think we're in a position
now are both sides that wanted to have a period
now where we can just we can move ahead and
have a more stable relationship between both of them. Is transactional,
(03:12):
but it's in both both sides interests.
Speaker 2 (03:16):
Cities CEO Jane Fraser also told Bloomberg that the bank
is now growing rapidly in China with reviving interest on
both investors and companies.
Speaker 3 (03:27):
US President Donald Trump is readying substantial tariff cuts as
he seeks to address voter concerns over high food prices
and the cost of goods. He's announced framework trade deals
with countries including Argentina, Guatemala, and Ecuador aimed at cutting
trade barriers on products like bananas and coffee beans. Stubbornly
high inflation, as well as weak labor data, has driven
(03:48):
a growing divide among Federal Reserve policymakers on the path
ahead for interest rates. Cleveland FED President Beth Hammock thinks
the US Center Bank should hold rates steady.
Speaker 4 (03:58):
When I look at both of those things on balance,
I think we need to remain somewhat restrictive to.
Speaker 7 (04:03):
Continue putting pressure to bring inflation.
Speaker 4 (04:05):
Down towards our target.
Speaker 3 (04:07):
Cleveland' f HAED President Beth Hammock there adding that businesses
have absorbed much of the tariff induced inflations so far,
but are now looking for ways to pass on casts
to consumers.
Speaker 2 (04:17):
The BBC says it has apologized to US President Donald
Trump for a misleading documentary edit of his January sixth,
twenty twenty one speech. Chairman Samir Shah wrote to the
White House expressing remorse, but separately, the broadcaster had challenged
President Trump's legal threats and rejected demands for compensation. BBC
(04:39):
former director Jamie Angus says a payout is unlikely.
Speaker 8 (04:44):
I'd be very surprised if the President ever got a
significant payment out of the BBC, and I don't think
you're appropriate really for the BBC to pay public money
to the President of the United States.
Speaker 2 (04:55):
Former BBC director Jamie Angus speaking there their apology comes off.
Trump's attorney gave the network a deadline of five pm
New York time today to apologize with track the documentary
and compensate the president, all face legal action. The BBC
says that it won't rebroadcast the documentary in question, which
(05:15):
is titled Trump a Second Chance, on any of its platforms.
Speaker 3 (05:19):
The European Union is finalizing plans for a major transfer
of national powers to its markets regulator. You officials are
looking at how to transform the European Securities and Markets
Authority into a more sweeping watchdog like the SEC in
the United States. Brooks Freddie Filstone has more.
Speaker 8 (05:35):
ESMA, the EU's market regulator, was founded after the financial
crisis to expand regional supervision. Now Europe is centralizing its
powers in a drive to boost growth. The EU Commission
wants it to be one empowered authority. Under the plans,
it will have powers to supervise crypto firms, trading venues
(05:56):
and clearing houses in London.
Speaker 4 (05:58):
Freddie Fulston Blue Radio.
Speaker 2 (06:01):
Franklin Templeton CEO Jenny Johnson says artificial intelligence is moving
quicker than she expected in the finance industry. Speaking to
Bloomberg's Fancy and lackwa the asset management boss said the
technology will make the investment process more efficient and more effective.
Speaker 7 (06:17):
It's going to have agenic AI al only does because
we have a first development of it where it'll go
out and kind of learn itself and.
Speaker 4 (06:23):
Say, hey, is this interesting data for you?
Speaker 8 (06:25):
Right?
Speaker 7 (06:26):
And so if you can do that well such that
that advisor says, I love meeting with Franklin Templeton because
those meetings are so.
Speaker 4 (06:32):
Valuable to me. That's going to be a win.
Speaker 2 (06:35):
Jenny Johnson speaking there. You can hear that full conversation
on the latest episode of Leaders with Laqua, available now
on the Bloomberg website and on the Terminal. Jenny Johnson's
comments come after Franklin Templeton partnered with Microsoft to build
a financial AI platform last year. According to Johnson, the firm,
which oversees more than one point six trillion dollars, is
(06:56):
also developing an AI tool to scan data and I
identify themes without human interference.
Speaker 3 (07:04):
To some breaking earnings news this hour. The Swiss luxury
giant Richma has reported a much stronger rise than expected
in sales in the first half of its financial year.
Sales at constant exchange rates rows by ten percent, analysted
forecasts again of just under seven percent. Richmark Keith saw
a return to growth in the most recent quarter in
the Key China, Hong Kong and Macau regions, while other
(07:25):
regions maintained their solid sales momentum.
Speaker 2 (07:29):
Those are top stories in the markets. Asian stocks stumbling.
The MSCI ASHA Pacific index is down one point four percent.
Tech firms leading the declines. A real shifting sentiment after
FED officials including Beth Hammock that you heard earlier and
Neil Kashkari dampened expectations for a December rate cut. In
the US, your Stock's fifty futures this morning are down
(07:51):
by three tenths of one percent. It's mixed also for
US futures. Remember, European shares closed at a record high
just on Wednesday. The pound is down currently three tenths
low against the dollar. The foots you one hundred also
closed down one percent yesterday. With the political uncertainty, bigcoin
is notable because it's a slumped below ninety eight thousand dollars,
(08:13):
down twenty percent since the beginning of October, and oil
prices brank Freud features at one point six percent. The
risks to rush and flows are mounting, and that seems
to be outweighing concerns about a global oil glot those
the markets.
Speaker 3 (08:27):
In a moment, we'll bring you the latest on the
UK's budget, plus the weekening picture for China's economy. But
something else I've learned from a Bloomberg story this morning
how difficult it can be to get an old watch fixed.
Now I have alluded to before that I have no
interest in watchers, but I actually think I'm becoming interested
because of Chris Wamsara and his writing on the Watch
Club newsletter as well. He has this great story about
(08:50):
getting he's a nineteen fifties watch Jerarperugo triple calendar model,
but the day and date indicators were jammed, so he
went on this journey to try and find somebody to
fix it, to a watchmaker friend who contacted the manufacturer,
who basically said, good luck, I can't believe one of
those still exists. He went to a local watch repair
shop in New York and then went eventually to a
(09:12):
digital company who he sent away first of all pictures
of the watch. They gave him an estimate, he sent
it away. They updated him throughout the repair about the
things that they found that had to be changed and
parts that you know, when they open the watch up,
the fan needs to be worked as well. And he
got it sent back as well. He's delighted with the
repair too. This is you know, people really do love
their watches, as we know, Caroline, and the extent that
(09:35):
you can go to to try and find that the
you know, the precise piece is to repair something, even
something small. You know, if the day isn't changing over
on your watch, does it ruin the start of your day?
Speaker 4 (09:47):
It does.
Speaker 2 (09:47):
Look I'm not a watch nerd as Chris Dubbs himself,
but I am actually, weirdly someone who quit likes watches.
I love wearing a watch all the time, and actually,
over the years I understand the appeal. They can become
so strangely meaningful, like I can't imagine my dad without
his watch now. So I absolutely love the repair story,
(10:08):
to be honest, And yes it's maybe not about I
mean He also went to the Watch Awards, you know,
which is like an industry event, and the time pieces
are gorgeous and obviously fabulously expensive, but I think even
the run of the mill time piece, you know, when
you wear it for a long long time, it just
does become part of you.
Speaker 3 (10:29):
Chris, he has a feature in the newsletter where he
asked people to take photos of their watches, so this time
it was his barista that he got a photo of
his watch as well.
Speaker 4 (10:36):
It's a great story.
Speaker 3 (10:37):
While we're at signing up to the Watch Club newsletter
to get the latest from Chris on the watch World too.
You'll find it linked to it in our podcast show
notes as well.
Speaker 2 (10:46):
Now, let's bring more on the UK budget and are
reporting that the Chancellor is considering dropping plans to raise
income taxes are reported. Tima Atabaya joins us now with
more on this. Good morning, Tia. What is the latest
then that we actually know? So, given the tremendous amount
of budget speculation, there's been.
Speaker 9 (11:04):
Yeah, Karen, this has been something of an ongoing saga,
and up until now most of the market and the
media have been operating under this sort of working assumption
that the Chancellor will be raising taxes in some way
in her upcoming budget announcement. Those hikes were heavily thought
to perhaps include plans to raise the headline rates of
(11:24):
income tax. That's something that was alluded to, if not confirmed,
in a pre budget speech last week from the Chancellor,
where she essentially set out her economic thesis statement. She
said that she has to deal with the world as
it is and not as she would like it to be,
a sort of foreboding tone which many took to mean
that she was abandoning the Labor Party's manifesto, pledged not
(11:45):
to raise taxes on working people. But late last night
we got some exclusive reporting from our Bloombo Politics team
that says that essentially Reeves might not be so sure
about increasing income tax after all. That's after the Ft
first reported that she was way on that point. So
Bloomberg are citing sources saying that essentially the Chancellor has
prepared two budgets, so one with and one without the
(12:09):
more controversial tax rises, so namely income tax, and in
the alternative we've got lots of smaller hikes. It's worth
mentioning that the pound and foot zero one hundred futures
fell on these reports, and so we've really been left
in this quite unusual situation where less than two weeks
away from the budget, and after a big speech which
(12:30):
was meant to sort of lay the foundations and perhaps
achieve clarity, it looks like the Chancellor is still deciding
between two quite different economic paths for the country.
Speaker 3 (12:40):
So what are the alternatives then, if it's not income
tax that would go up in the budgets.
Speaker 9 (12:45):
Well, according to the sources, that second budget plan, if you,
includes quite a lot of smaller tax hikes as I mentioned,
instead of those big increases to headlining rates of income tax.
But there are also perhaps some more creative measures, like
other changes to the tax tax code. But our reporting
says that Treasury officials are really still considering dozens of
(13:06):
potential policy reforms. It seems like at this point there
is still so much more on the table at quite
a late stage than there usually is in terms of
previous budgets, and so according to Treasury sources in our
Bloomberg stories, it seems that no one is really exactly
sure what's in either of the budget plans, and also
what exactly is going to be announced on November the
(13:29):
twenty sixth.
Speaker 2 (13:30):
Is it's also important politically for the government not to
break the manifesto pledge over income tax because you mentioned,
you know that it's the chance's choice. It is ultimately,
but obviously it needs MPs. It's about cabinet agreement and
agreement with the Prime Minister too. This is so deeply
(13:50):
political and it involves you know, the Manifesto pledge.
Speaker 9 (13:54):
Yeah, you're right, Caron, it's very political and it's coming
out of politically precarious time for the government. It's important,
I think in this to look back at the context
just of this week we've seen a media storm over
reports at the Health Secretary where Streeting was mounting a
leadership challenge to the Prime Minister. Kis Darma even had
to apologize to Streeting for media briefings on that supposedly
(14:18):
from his allies. And the government does seem to be
slightly insecure, and much of it is in relation to
this budget and crucially the potential dropping of that manifesto
pledge not to raise taxes on working people, which it
seems would be very unpopular amongst the elector at at least.
But the Bloomberg reporting is saying that there is ongoing
(14:40):
conflict in the cabinet about these budget plans. So it's
being reported that Reeves favors her first plan, which is
the income tax hike option, but she's facing political pressure
to find the alternativesens It seems that's where this second
budget plan has come from, and it will likely be
on the mind of the government and Prime Minister that
(15:00):
they need to keep not only the public but also
their own party on side. Here going back to that
leadership challenge, We've got a story on Bloombag saying that
Where's Streeting on the latest odds is now overtaken Nigel
Farage as the favorite for Prime Minister, So that's really significant.
It shows that there's a lot riding on this budget.
They are credible opposers, perhaps the Starmer's position, but there's
(15:24):
a lot riding on this, not just for Reeves but
also for the future of Kiir Starmer and his government.
Speaker 3 (15:31):
Yeah, a week as a long time in politics too. Adebaia,
thank you very much for joining us with the latest
reporting on what to expect from the budget in the UK.
Speaker 4 (15:40):
Stay with us.
Speaker 2 (15:41):
More from Bloomberg Day BAQUB coming up after this. Now
to China, where the economic data shows activity cooling more
than expected. Our China Economy Government editor Alan Wong joins
us Now, Alan, hello, talk us through the data. Is
a big data dump from China today. Where did we
(16:01):
see particular weakness?
Speaker 10 (16:03):
Yeah, the weakness was really across the board this time,
and frankly worse than what most people were expecting. The
biggest shock is in investment. A fixed asset investment saw
a record decline for October, and bloomber Economics actually estimates
that it plunged as much as twelve percent in October alone,
(16:24):
that just one month. But it wasn't just investment. We're
also seeing that factory output hit its slowest growth since
the start of the year, and crucially, the consumer is
still pulling back. A retail sales slowed for a fifth month.
So when you add that to the surprise contraction that
we already saw in exports earlier this month, it really
(16:46):
shows weakness in investment, in industry, and consumption. These are
all the main components of the economy.
Speaker 3 (16:54):
Is it enough, though, Allan to provoke more stimulus from Beijing?
Speaker 4 (16:58):
Yeah, you would think so.
Speaker 10 (17:00):
So the signals that we're getting immediately in the immediate
aftermath of the release suggests not yet. A Beijing statement
talked about actively facilitating the implementation of existing policies, which
one could recently read as we're not rolling out new
stimulus right now. So the feeling is that while these
(17:20):
numbers are soft and soft than expected in most cases,
they just aren't bad enough to trigger any sort of
a panic response. Beijing seems to be just saving its
policy options for next year, especially because achieving the twenty
twenty five growth target, which is about five percent growth,
still seems pretty much doable without intervening right now.
Speaker 4 (17:44):
That's interesting. What's the outlook then from here?
Speaker 2 (17:47):
Because Beijing's next five year plan starts from next year,
do you think that will tackle any of these issues?
Speaker 10 (17:55):
In a short term, the attention will be on the
stimulus that Beijing already approved.
Speaker 4 (18:02):
There's a total one.
Speaker 10 (18:03):
Trillion yuan since the end of September that should really
start to kick in in the coming weeks. They're also
hoping that the trade truths with the US struck lay
last month will give China's exports some boost. Now about
the five year plan, that plan is really about the
longer term fix for the economy. It's expected to tackle
(18:24):
the structural issues that we've been talking about, for example,
getting people to spend again, So their proposals like better
distribute income across the population and strengthening the social security
system that makes people feel more secure financially and encourage
(18:45):
them to spend more. That's a long game, but for
now they are relying on the stimulus debt. It's already
been announced and in the pipeline. So China in a
longer term, also has increasingly emphasized the quality of growth,
not just the sheer quantity. So I think we can
expect some sort of a transition period, but in the meantime,
China feels pretty comfortable about reaching the immediate growth target
(19:08):
for the year.
Speaker 3 (19:10):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:16):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (19:22):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (19:28):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
Speaker 4 (19:36):
I'm Caroline Hepka and I'm Stephen. Carol.
Speaker 3 (19:38):
Join us again tomorrow morning for all the news you
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 Bloomberg Day bake At podcast. Good morning,
It's finday, the fourteenth of November. I'm Caroline Hepcitt in London.
Speaker 3 (00:15):
And I'm Stephen Caroline Brussels. Coming up today, the UK's
Chancellor Rachel Reeves considers abandoning plans to hike income tax
in her upcoming budget.
Speaker 2 (00:24):
An unprecedented slump in investment highlights China's filtering economy.
Speaker 3 (00:29):
Plus from watchdog to top dog, the EU prepares to
unveil plans for a major transfer of powers to its
markets regulator.
Speaker 2 (00:37):
Let's start with a roundup of our top stories.
Speaker 4 (00:40):
And what could be a major U turn.
Speaker 3 (00:41):
The British Chancellor Rachel Reeves is considering dropping plans to
raise the headline rates of income tax and several other
levies and the upcoming budget. The pound has weakened against
the dollar and the euro on the reports. The development
comes just days after the government lurched into a new
political crisis amid allegations the Prime Minister was about to
face a leadership challenge with Mura. Here's Bloomberg's Chrispas.
Speaker 5 (01:04):
Ten days ago, Rachel Reeves delivered what was a highly
unusual pre budget speech in which she declined to reiterate
Labour's manifesto commitment against broad based tax hikes, and just
this week she doubled down on those comments in this
BBC Radio interview.
Speaker 6 (01:22):
We are having to look at taxes and spending and
it's got to be both of those things. And the
speech I made last week was about setting the context
for the budget, which is a difficult one.
Speaker 5 (01:34):
But now, sources tell Bloomberg the Chancellor is considering not
going ahead with increases in either the basic or higher
income rates of tax, after internal concerns that such a
move would break a manifesto promise not to raise taxes
on working people. She's also understood to be reconsidering whether
(01:55):
to proceed with an exit tax on wealthy individuals leaving
the UK, all of which raises the question of hol
Reeves now plans to fill a black hole of as
much as thirty five billion pounds in her November twenty
sixth budget in London, Crispit Bloomberg Radio.
Speaker 2 (02:14):
Well now to China, where economic activity cooled more than
expected at the start of the fourth quarter. Data shows
an unprecedented slump in investment and slower growth in industrial output,
adding to a drag from sluggish consumption. Industrial production climbed
four point nine percent last month from a year earlier.
(02:34):
That was down from six and a half percent in September.
But City's CEO Jane Fraser has told Bloomberg that the
deals struck by Presidents Trump and Ji Jinping should now
help to ease economic relations between the world's two largest economies.
Speaker 1 (02:50):
I think the recent truth has brought some much needed
and welcome stability here. I think we're in a position
now are both sides that wanted to have a period
now where we can just we can move ahead and
have a more stable relationship between both of them. Is transactional,
(03:12):
but it's in both both sides interests.
Speaker 2 (03:16):
Cities CEO Jane Fraser also told Bloomberg that the bank
is now growing rapidly in China with reviving interest on
both investors and companies.
Speaker 3 (03:27):
US President Donald Trump is readying substantial tariff cuts as
he seeks to address voter concerns over high food prices
and the cost of goods. He's announced framework trade deals
with countries including Argentina, Guatemala, and Ecuador aimed at cutting
trade barriers on products like bananas and coffee beans. Stubbornly
high inflation, as well as weak labor data, has driven
(03:48):
a growing divide among Federal Reserve policymakers on the path
ahead for interest rates. Cleveland FED President Beth Hammock thinks
the US Center Bank should hold rates steady.
Speaker 4 (03:58):
When I look at both of those things on balance,
I think we need to remain somewhat restrictive to.
Speaker 7 (04:03):
Continue putting pressure to bring inflation.
Speaker 4 (04:05):
Down towards our target.
Speaker 3 (04:07):
Cleveland' f HAED President Beth Hammock there adding that businesses
have absorbed much of the tariff induced inflations so far,
but are now looking for ways to pass on casts
to consumers.
Speaker 2 (04:17):
The BBC says it has apologized to US President Donald
Trump for a misleading documentary edit of his January sixth,
twenty twenty one speech. Chairman Samir Shah wrote to the
White House expressing remorse, but separately, the broadcaster had challenged
President Trump's legal threats and rejected demands for compensation. BBC
(04:39):
former director Jamie Angus says a payout is unlikely.
Speaker 8 (04:44):
I'd be very surprised if the President ever got a
significant payment out of the BBC, and I don't think
you're appropriate really for the BBC to pay public money
to the President of the United States.
Speaker 2 (04:55):
Former BBC director Jamie Angus speaking there their apology comes off.
Trump's attorney gave the network a deadline of five pm
New York time today to apologize with track the documentary
and compensate the president, all face legal action. The BBC
says that it won't rebroadcast the documentary in question, which
(05:15):
is titled Trump a Second Chance, on any of its platforms.
Speaker 3 (05:19):
The European Union is finalizing plans for a major transfer
of national powers to its markets regulator. You officials are
looking at how to transform the European Securities and Markets
Authority into a more sweeping watchdog like the SEC in
the United States. Brooks Freddie Filstone has more.
Speaker 8 (05:35):
ESMA, the EU's market regulator, was founded after the financial
crisis to expand regional supervision. Now Europe is centralizing its
powers in a drive to boost growth. The EU Commission
wants it to be one empowered authority. Under the plans,
it will have powers to supervise crypto firms, trading venues
(05:56):
and clearing houses in London.
Speaker 4 (05:58):
Freddie Fulston Blue Radio.
Speaker 2 (06:01):
Franklin Templeton CEO Jenny Johnson says artificial intelligence is moving
quicker than she expected in the finance industry. Speaking to
Bloomberg's Fancy and lackwa the asset management boss said the
technology will make the investment process more efficient and more effective.
Speaker 7 (06:17):
It's going to have agenic AI al only does because
we have a first development of it where it'll go
out and kind of learn itself and.
Speaker 4 (06:23):
Say, hey, is this interesting data for you?
Speaker 8 (06:25):
Right?
Speaker 7 (06:26):
And so if you can do that well such that
that advisor says, I love meeting with Franklin Templeton because
those meetings are so.
Speaker 4 (06:32):
Valuable to me. That's going to be a win.
Speaker 2 (06:35):
Jenny Johnson speaking there. You can hear that full conversation
on the latest episode of Leaders with Laqua, available now
on the Bloomberg website and on the Terminal. Jenny Johnson's
comments come after Franklin Templeton partnered with Microsoft to build
a financial AI platform last year. According to Johnson, the firm,
which oversees more than one point six trillion dollars, is
(06:56):
also developing an AI tool to scan data and I
identify themes without human interference.
Speaker 3 (07:04):
To some breaking earnings news this hour. The Swiss luxury
giant Richma has reported a much stronger rise than expected
in sales in the first half of its financial year.
Sales at constant exchange rates rows by ten percent, analysted
forecasts again of just under seven percent. Richmark Keith saw
a return to growth in the most recent quarter in
the Key China, Hong Kong and Macau regions, while other
(07:25):
regions maintained their solid sales momentum.
Speaker 2 (07:29):
Those are top stories in the markets. Asian stocks stumbling.
The MSCI ASHA Pacific index is down one point four percent.
Tech firms leading the declines. A real shifting sentiment after
FED officials including Beth Hammock that you heard earlier and
Neil Kashkari dampened expectations for a December rate cut. In
the US, your Stock's fifty futures this morning are down
(07:51):
by three tenths of one percent. It's mixed also for
US futures. Remember, European shares closed at a record high
just on Wednesday. The pound is down currently three tenths
low against the dollar. The foots you one hundred also
closed down one percent yesterday. With the political uncertainty, bigcoin
is notable because it's a slumped below ninety eight thousand dollars,
(08:13):
down twenty percent since the beginning of October, and oil
prices brank Freud features at one point six percent. The
risks to rush and flows are mounting, and that seems
to be outweighing concerns about a global oil glot those
the markets.
Speaker 3 (08:27):
In a moment, we'll bring you the latest on the
UK's budget, plus the weekening picture for China's economy. But
something else I've learned from a Bloomberg story this morning
how difficult it can be to get an old watch fixed.
Now I have alluded to before that I have no
interest in watchers, but I actually think I'm becoming interested
because of Chris Wamsara and his writing on the Watch
Club newsletter as well. He has this great story about
(08:50):
getting he's a nineteen fifties watch Jerarperugo triple calendar model,
but the day and date indicators were jammed, so he
went on this journey to try and find somebody to
fix it, to a watchmaker friend who contacted the manufacturer,
who basically said, good luck, I can't believe one of
those still exists. He went to a local watch repair
shop in New York and then went eventually to a
(09:12):
digital company who he sent away first of all pictures
of the watch. They gave him an estimate, he sent
it away. They updated him throughout the repair about the
things that they found that had to be changed and
parts that you know, when they open the watch up,
the fan needs to be worked as well. And he
got it sent back as well. He's delighted with the
repair too. This is you know, people really do love
their watches, as we know, Caroline, and the extent that
(09:35):
you can go to to try and find that the
you know, the precise piece is to repair something, even
something small. You know, if the day isn't changing over
on your watch, does it ruin the start of your day?
Speaker 4 (09:47):
It does.
Speaker 2 (09:47):
Look I'm not a watch nerd as Chris Dubbs himself,
but I am actually, weirdly someone who quit likes watches.
I love wearing a watch all the time, and actually,
over the years I understand the appeal. They can become
so strangely meaningful, like I can't imagine my dad without
his watch now. So I absolutely love the repair story,
(10:08):
to be honest, And yes it's maybe not about I
mean He also went to the Watch Awards, you know,
which is like an industry event, and the time pieces
are gorgeous and obviously fabulously expensive, but I think even
the run of the mill time piece, you know, when
you wear it for a long long time, it just
does become part of you.
Speaker 3 (10:29):
Chris, he has a feature in the newsletter where he
asked people to take photos of their watches, so this time
it was his barista that he got a photo of
his watch as well.
Speaker 4 (10:36):
It's a great story.
Speaker 3 (10:37):
While we're at signing up to the Watch Club newsletter
to get the latest from Chris on the watch World too.
You'll find it linked to it in our podcast show
notes as well.
Speaker 2 (10:46):
Now, let's bring more on the UK budget and are
reporting that the Chancellor is considering dropping plans to raise
income taxes are reported. Tima Atabaya joins us now with
more on this. Good morning, Tia. What is the latest
then that we actually know? So, given the tremendous amount
of budget speculation, there's been.
Speaker 9 (11:04):
Yeah, Karen, this has been something of an ongoing saga,
and up until now most of the market and the
media have been operating under this sort of working assumption
that the Chancellor will be raising taxes in some way
in her upcoming budget announcement. Those hikes were heavily thought
to perhaps include plans to raise the headline rates of
(11:24):
income tax. That's something that was alluded to, if not confirmed,
in a pre budget speech last week from the Chancellor,
where she essentially set out her economic thesis statement. She
said that she has to deal with the world as
it is and not as she would like it to be,
a sort of foreboding tone which many took to mean
that she was abandoning the Labor Party's manifesto, pledged not
(11:45):
to raise taxes on working people. But late last night
we got some exclusive reporting from our Bloombo Politics team
that says that essentially Reeves might not be so sure
about increasing income tax after all. That's after the Ft
first reported that she was way on that point. So
Bloomberg are citing sources saying that essentially the Chancellor has
prepared two budgets, so one with and one without the
(12:09):
more controversial tax rises, so namely income tax, and in
the alternative we've got lots of smaller hikes. It's worth
mentioning that the pound and foot zero one hundred futures
fell on these reports, and so we've really been left
in this quite unusual situation where less than two weeks
away from the budget, and after a big speech which
(12:30):
was meant to sort of lay the foundations and perhaps
achieve clarity, it looks like the Chancellor is still deciding
between two quite different economic paths for the country.
Speaker 3 (12:40):
So what are the alternatives then, if it's not income
tax that would go up in the budgets.
Speaker 9 (12:45):
Well, according to the sources, that second budget plan, if you,
includes quite a lot of smaller tax hikes as I mentioned,
instead of those big increases to headlining rates of income tax.
But there are also perhaps some more creative measures, like
other changes to the tax tax code. But our reporting
says that Treasury officials are really still considering dozens of
(13:06):
potential policy reforms. It seems like at this point there
is still so much more on the table at quite
a late stage than there usually is in terms of
previous budgets, and so according to Treasury sources in our
Bloomberg stories, it seems that no one is really exactly
sure what's in either of the budget plans, and also
what exactly is going to be announced on November the
(13:29):
twenty sixth.
Speaker 2 (13:30):
Is it's also important politically for the government not to
break the manifesto pledge over income tax because you mentioned,
you know that it's the chance's choice. It is ultimately,
but obviously it needs MPs. It's about cabinet agreement and
agreement with the Prime Minister too. This is so deeply
(13:50):
political and it involves you know, the Manifesto pledge.
Speaker 9 (13:54):
Yeah, you're right, Caron, it's very political and it's coming
out of politically precarious time for the government. It's important,
I think in this to look back at the context
just of this week we've seen a media storm over
reports at the Health Secretary where Streeting was mounting a
leadership challenge to the Prime Minister. Kis Darma even had
to apologize to Streeting for media briefings on that supposedly
(14:18):
from his allies. And the government does seem to be
slightly insecure, and much of it is in relation to
this budget and crucially the potential dropping of that manifesto
pledge not to raise taxes on working people, which it
seems would be very unpopular amongst the elector at at least.
But the Bloomberg reporting is saying that there is ongoing
(14:40):
conflict in the cabinet about these budget plans. So it's
being reported that Reeves favors her first plan, which is
the income tax hike option, but she's facing political pressure
to find the alternativesens It seems that's where this second
budget plan has come from, and it will likely be
on the mind of the government and Prime Minister that
(15:00):
they need to keep not only the public but also
their own party on side. Here going back to that
leadership challenge, We've got a story on Bloombag saying that
Where's Streeting on the latest odds is now overtaken Nigel
Farage as the favorite for Prime Minister, So that's really significant.
It shows that there's a lot riding on this budget.
They are credible opposers, perhaps the Starmer's position, but there's
(15:24):
a lot riding on this, not just for Reeves but
also for the future of Kiir Starmer and his government.
Speaker 3 (15:31):
Yeah, a week as a long time in politics too. Adebaia,
thank you very much for joining us with the latest
reporting on what to expect from the budget in the UK.
Speaker 4 (15:40):
Stay with us.
Speaker 2 (15:41):
More from Bloomberg Day BAQUB coming up after this. Now
to China, where the economic data shows activity cooling more
than expected. Our China Economy Government editor Alan Wong joins
us Now, Alan, hello, talk us through the data. Is
a big data dump from China today. Where did we
(16:01):
see particular weakness?
Speaker 10 (16:03):
Yeah, the weakness was really across the board this time,
and frankly worse than what most people were expecting. The
biggest shock is in investment. A fixed asset investment saw
a record decline for October, and bloomber Economics actually estimates
that it plunged as much as twelve percent in October alone,
(16:24):
that just one month. But it wasn't just investment. We're
also seeing that factory output hit its slowest growth since
the start of the year, and crucially, the consumer is
still pulling back. A retail sales slowed for a fifth month.
So when you add that to the surprise contraction that
we already saw in exports earlier this month, it really
(16:46):
shows weakness in investment, in industry, and consumption. These are
all the main components of the economy.
Speaker 3 (16:54):
Is it enough, though, Allan to provoke more stimulus from Beijing?
Speaker 4 (16:58):
Yeah, you would think so.
Speaker 10 (17:00):
So the signals that we're getting immediately in the immediate
aftermath of the release suggests not yet. A Beijing statement
talked about actively facilitating the implementation of existing policies, which
one could recently read as we're not rolling out new
stimulus right now. So the feeling is that while these
(17:20):
numbers are soft and soft than expected in most cases,
they just aren't bad enough to trigger any sort of
a panic response. Beijing seems to be just saving its
policy options for next year, especially because achieving the twenty
twenty five growth target, which is about five percent growth,
still seems pretty much doable without intervening right now.
Speaker 4 (17:44):
That's interesting. What's the outlook then from here?
Speaker 2 (17:47):
Because Beijing's next five year plan starts from next year,
do you think that will tackle any of these issues?
Speaker 10 (17:55):
In a short term, the attention will be on the
stimulus that Beijing already approved.
Speaker 4 (18:02):
There's a total one.
Speaker 10 (18:03):
Trillion yuan since the end of September that should really
start to kick in in the coming weeks. They're also
hoping that the trade truths with the US struck lay
last month will give China's exports some boost. Now about
the five year plan, that plan is really about the
longer term fix for the economy. It's expected to tackle
(18:24):
the structural issues that we've been talking about, for example,
getting people to spend again, So their proposals like better
distribute income across the population and strengthening the social security
system that makes people feel more secure financially and encourage
(18:45):
them to spend more. That's a long game, but for
now they are relying on the stimulus debt. It's already
been announced and in the pipeline. So China in a
longer term, also has increasingly emphasized the quality of growth,
not just the sheer quantity. So I think we can
expect some sort of a transition period, but in the meantime,
China feels pretty comfortable about reaching the immediate growth target
(19:08):
for the year.
Speaker 3 (19:10):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:16):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (19:22):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (19:28):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
Speaker 4 (19:36):
I'm Caroline Hepka and I'm Stephen. Carol.
Speaker 3 (19:38):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day Break.
Europe
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