September 29, 2025 • 18 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Chancellor of the Exchequer Rachel Reeves can be sure the bond markets have her back. But on Monday she faces down her own party, and she may find them tougher to win over.
(2) The government is set to define what “contributions” foreign workers must make in order to claim settled status in the UK, marking a tightening of its stance on legal migration.
(3) UK companies are becoming less forthcoming about what they’re willing to pay to fill open roles, indicating that employers are no longer under pressure to boost wages in a weakening labor market.
(4) Moldova’s ruling pro-European party was on track to win re-election, keeping the country on the path to European Union membership and raising the risk of an escalation in tensions with Russia.
(5) Moldova’s ruling pro-European party was on track to win re-election, keeping the country on the path to European Union membership and raising the risk of an escalation in tensions with Russia.
Podcast Conversation: At 66, I Decided to Pay Back a Lifetime of Sleep Debt: Essay
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Day baq At podcast. Good morning,
It's Monday, the twenty ninth of September. I'm Caroline hepkea
in London and.
Speaker 1 (00:15):
I'm Stephen Caroline Brussels. Coming up today, the UK's Rachel
Reeves and Kir Starmer attempt a political fight back at
the Labor Party conference. Grounded in fiscal restraint and opposition
to Nigel Farage.
Speaker 2 (00:28):
Moldova's ruling Pro EU party is on track to win
reelection after Bloomberg uncovered unprecedented voter interference efforts by Moscow.
Speaker 1 (00:39):
Plus one way or another, the taxman is coming for
France's wealthiest. Why the tough choices facing the prime minister?
I mean the countries rich are likely to be paying more.
Speaker 2 (00:49):
Let's start with a roundup of our top stories.
Speaker 1 (00:52):
The UK's Prime Minister, Kir Starmer, is framing his political
survival as the country's best hope of defeating populism. Speaking
to the BBC as Labor Party members gathered in Liverpool
for their annual conference, Starmer said his government is in
a contest for Britain's soul, as he sought to draw
political battle lines with Nigel farajuas reform UK.
Speaker 3 (01:14):
We have not had a proposition like reform in this
country ever before, and you've seen it in France and
Germany and plenty of other countries. This is a different fight.
It is a fight about who we are as a country.
It goes to the soul of our future. It will
be heard and the effects will be therefore generations.
Speaker 1 (01:32):
Kir Starmer was speaking as his chancellor prepares to deliver
her conference speech later today. Confronting a black hole in
the public finances of at least twenty billion pounds, that's
left Rachel Reeves needing to draw plans for tax rises
in her autumn budget in November. At the same time,
she must convince voters that her economic program can offer
a compelling alternative to the populist right without risking her
(01:56):
reputation for fiscal prudence.
Speaker 2 (01:59):
Lab is sas a political fight back come as the
government prepares to set out what contributions foreign workers must
make to claim settled status in the UK. Home Secretary
shabanamah Mood will tell the party's conference today that migrants
will have to earn the right to claim so called
indefinite leave to remain. This status grants access to certain
(02:22):
welfare benefits and the ability to work in the UK.
Speaker 1 (02:27):
The government's efforts to tighten migration rules in the UK
comes as new data points to a weakening labor market.
Figures from the job Site indeed show that only fifty
six percent of postings included wage information in August. That's
a drop of nearly ten percentage points since the start
of the year, are the lowest chair since early twenty
twenty two. And let's say companies reluctance to disclose pay
(02:50):
suggests employers are no longer under pressure to boost wages.
Speaker 2 (02:54):
Now, let's go to Moldova, where the pro European ruling
party is set to be re elected, keeping the country
on its path towards EU membership amid strained relations with Russia.
President Maya Sandhu's Action and Solidarity Party secured forty nine
point six percent of votes. That's according to the unofficial
(03:14):
results from almost ninety eight percent of precincts. The pro
Russian Patriotic Electoral Bloc came in second with twenty four
point five percent. President Maya Sandhu spoke about Russian interference
after casting her vote over the weekend.
Speaker 4 (03:34):
We all know that the Russian Federation has been heavily
involved in the elections of the Republic of Moldova. I
have spoken and our institutions have spoken about various methods,
starting from attempts to buy votes, and hundreds of millions
of yuros have been spent for this. I've spoken about
the training of young people from the Republic of Moldova
to organized violence destabilizing actions.
Speaker 2 (03:53):
President Maya Sandhu speaking there via a translator as the
result was coming in. If confirmed, it would be a
major blow to Russia after it allegedly spent millions of
dollars to install pro Moscow forces in Moldova's capital.
Speaker 1 (04:14):
Cracks are beginning to show on the global stock rally,
according to research from Bloomberg Intelligence. That's even as a
second straight quarter of strong gains lifted indexes to record highs.
Bloomberg's team at a Bio has more.
Speaker 5 (04:27):
For now, global stocks are benefiting from lucer fed policy,
resilient earnings, and surging commodities, but trouble could be brewing
on the horizon. A Bloomberg Intelligence breadth gage of equities
has fallen a full standard deviation below its average. Typically,
this pattern has flagged overheated rallies and been a precursor
to slowing returns. According to our analyst, signs suggest the
(04:51):
recent rally may cool over the next thirty to ninety
trading days. In London, Teama at a Bio Bloomberg Radio.
Speaker 2 (04:59):
Team Europe have won Golf's Ryder Cup on American sore
for the first time since twenty twelve. Luke Donald's team
held off a spirited comeback from their hosts in New
York to win the trophy by fifteen points to thirteen.
Irishman Shane Lowry secured the trophy with a nail biting
(05:19):
final part.
Speaker 1 (05:20):
To retain the cup.
Speaker 6 (05:24):
Lowly does it, Lowly has it, Leaping and hollering and celebrating,
stills in at the last Shane Lowry to half the
match against Russell Henley and the cup has retained. These
are the moments you remember, and he'll remember it for
the rest of his days.
Speaker 2 (05:43):
So victory for the Europeans. The next Ryder Cup will
be held in Ireland in two years time. And those
are top stories for you this morning. Let's look at
the market's US and European stock futures are up this morning,
along with Asian equities largely. You've got the cospe hang
saying and the main benchmar in China or gaining this
as gold has hit another record. Hive also got the
(06:05):
Bloomberg Dollar Spot Index weakening by about a quarter of
one percent this morning. Crude all falling, with people familiar
saying that OPEC plus will weigh a November supply increase.
So looking at the bond markets this morning, tenny usls
down two basis points at full fifteen. Those are the markets.
Speaker 1 (06:24):
In a moment, We'll bring you more from the Labor
Party conference, plus why France's richest people have plenty to
worry about in the upcoming budget. There but other story
that we've been reading this morning from arcolleague Howard Schway.
You one who's been writing about sleep debt, the subject
very close to our hearts, Caroline. This is essentially what
experts say is every time you come in under seven
(06:45):
to nine hours of sleep that's required to stay healthy
and sane. I quote, this is the debt that you
build up and then have to spend much longer recovering.
At one estimates that Howard quotes in his piece from
a hospital group in the US, as it could take
four days to cover from just one hour of sleep debt.
I'm not doing the mats on this, Caroline. It's been
about thirteen years I think that I've been in sleep deficit.
(07:08):
So the prospect of he long it'll take me to
do that, I think I'll see you in about twenty
fifty five for our next show.
Speaker 2 (07:15):
Yeah, absolutely, my heart always thinks. And Howard writes about
sleep deficits. But it's husually important, isn't it, Just like
you know, eating and exercising, sleep is massively important. But
Howard also charts a little bit of the history of
his own life and how it came about, you know,
as an editors of writer being up all night, and
that it was those habits that even now as he's
(07:37):
i'll say it a little bit older now that those
habits have sort of stuck for him.
Speaker 1 (07:42):
So yeah, look, I as you and anyone who's ever
met me will no I can talk for hours about
sleep hygiene. It becomes an obsession when you work the
sort of hours that we work for this as well.
But I really like Howard has a lot of practical
tips in this piece as well about how you can
basically act as if you are sleeping, which is a
(08:03):
good method to try and get yourself to sleep. I
will be trying that and I will report.
Speaker 7 (08:07):
Back suns great.
Speaker 2 (08:09):
Look, wonder whether there's any sleep deficit up in Liverpool.
Let's bring you more from our Labor from the Labor
Party conference that's taking place in Liverpool. Only fourteen months
into office, Prime Minister Kis Sarma and Chancellor Rachel Reeves
have significant challenges fiscally and with their popularity and interviews,
as the conference got underway, Sarma took on his biggest rival,
(08:33):
Nigel Farag's Reform UK Are. UK Politics reporter James Hawcock
joins us now from Liverpool. James, how crucial is this
conference for the Prime Minister.
Speaker 7 (08:45):
I'll probably have some sleep debt after that.
Speaker 8 (08:47):
Look, the Prime Minister goes into this conference as the
most unpopular prime minister on record according to IPSOS polling,
and with rivals outside of the party in Reform Pole
higher than him, and inside with the man to meet,
Andy Burnham, who said MPs have been telling him over
the summer he could do a better job. Look, I
was at a fringe event last night with the Mayor
(09:08):
of London seek Khan, where he said conference is a
window for the country to see what Labour actually stand for,
and he followed it up by thanking both delegates and
journals for coming, as well as spectators who love watching
blood sports. So that gives you a flavor of quite
how febrile the environment is here and Starmer and his
(09:28):
Chancellor Rachelbuthes have to set out what is a more
positive vision for their government going forward.
Speaker 2 (09:34):
Yeah, and so in terms of what we're expecting from
the Chancellor today and her speech, it's a very far cry,
perhaps from how she was when she was Chancellor in waiting.
Speaker 8 (09:46):
It's funny you say that, Carolyn, because there are a
remarkable number of similarities to last year.
Speaker 7 (09:51):
We go in expecting a large.
Speaker 8 (09:53):
Black hole the shortfalling government finances from both an OBR
downgrade there's been long feared might come, and also welfare
spending similar to last year where there were big fears
about Conservative overspend going into the budget. There are questions
about tax over whether Labour's manifesto from the election will hold,
and there are also big plans apparently later today for
the Chancellor to announce changes to youth unemployment to try
(10:16):
and get more people back into work to boost the
long term supply curve of the economy. So although much
has changed in terms of the sort of political outlook,
in many ways, the Chancellor still trying to do very
similar things to what she was doing last year.
Speaker 7 (10:31):
The question is if she can pull it off.
Speaker 1 (10:35):
That's the focus on the Chancellor today, James. But this,
as you've been laying out for us, is such a
big challenge for the Prime Minister now as well. He's
been criticized for not taking bold enough action on immigration
and the economy. He's spoken about reform UK and his
conversations running up to this event as well, and you've
also been speaking to some of those about the expectations
(10:57):
and the I suppose the bar that the Prime Minister
has to meet at this event.
Speaker 8 (11:01):
The question all the journals here are asking, Stephen, is
is this a genuine moment of jeopardy for the prime minister?
Speaker 7 (11:07):
Is his job at risk?
Speaker 8 (11:08):
And that I talked to Nick Williams, a former Downstreet
advisor who helped write Labour's economic manifesto.
Speaker 7 (11:14):
He says it's a tight spot for the leader and
the Chancellor.
Speaker 8 (11:18):
It is definitely the case that Kier and Rachel go
into this conference with their sort of.
Speaker 7 (11:21):
Backs against the wall.
Speaker 8 (11:22):
But one thing I know about the two of them
is that when they're backs against their will against the wall,
their instinct is to come out swinging. Now, coming out
swinging in this case is calling reforms policies racist and
saying labor is in a fight for the soul of
the country. Those are comments from Keir Starmer over the weekend,
and they are introducing new policy to try and fix that.
(11:43):
The tackle immigration and the economy. Two of their areas
they're seen as weak ist one and that is ID cards.
And now this morning we're hearing there is going to
be new policies around stricter conditions if you're allowed to
settle in the UK as a foreign migrant. That's including
having a clean criminal record, paying tax, not being on benefits,
and having a highest standard of English before you can
(12:04):
be considered to resettle in the country.
Speaker 2 (12:07):
Yeah, it's an interesting one, isn't it. The Prime Minister
effectively calling it a kind of fight for the nation's soul.
Thank you so much for being with us. That is
Bloomberg's James Wilcock, who is at the Labour Party conference
in Liverpool. Stay with us more from Bloomberg daybaqube coming
up after this.
Speaker 1 (12:28):
France's new Prime minister is under pressure from the left,
the extreme right, and even his own centrist allies to
extract more tax from the country's wealthiest residents. Sebastian laklu
is facing difficult decisions as he prepares his twenty twenty
six budget that aims to cut the largest deficit in
the euro Area. Bloomberg's Tara Patel covers Wealth for Bloomberg
(12:49):
from Paris. She joins us now for more. Tara, good morning.
What are then the proposals being considered by the Prime minister?
Speaker 9 (12:56):
The proposals on the table and off the table on
a very very wide gamut. They're ranging from an extremely
broad proposal named for an economist called Gabriel Zuckman. This
is from the Socialist Party and it would it would
tax basically all personal assets of somebody who has more
(13:19):
than one hundred million. Two very very very targeted proposals
that would for instance, put holding companies on the table
or maybe maybe take away certain tax niches to avoid
what many critics have called over optimization of taxes. I
(13:41):
think what we know, we've had a little bit more
clarity about what the Prime minister is thinking this time.
Two days ago he came out and said that he
really is not in favor. He's he's definitely against a
very broad based wealth tax for France, which has tried before,
(14:02):
but he is willing to consider perhaps more targeted measures.
Speaker 2 (14:08):
Yeah, as you say, frans has tried wealth taxes in
the past, Can they work this time or how do
proponents say that they would be more effective this time around.
Speaker 10 (14:20):
Well, it's very difficult to say.
Speaker 9 (14:22):
You know, I think people who are backing this kind
of wealth tax, it's it's really coming from from the
left more than anything else. So that's why it really
does hark back to Francois Mitterrent when he first came
into power. He was the first socialist president post war
for France, and really one of the one of the
reasons he won was because he came came in promising
(14:45):
that he would he would he would make the rich
pay more. And and this debate that's going on now
that really started last year during the election campaign, has
come on fast and furiously, and I think that the
Socialist Party again has really latched onto this issue as
(15:06):
something that can bring people into the streets and speaks
to a very broad swath of France's population. Can they
work this time? I think, like any policy, it depends
on the way that the government tries to put it
in place, if that's what they think they need to do.
(15:27):
We've all seen in the UK in particular, when the
non don for instance, measures.
Speaker 10 (15:35):
Are starting to be whittled away.
Speaker 9 (15:37):
The ultra rich are a very very mobile population and
if there's a particular tax that comes in that they
don't like, well it's very very easy just to pick
up and to go to and find places where the
tax situation may be a little bit more favorable to people.
So I think in France's case, it's really going to
(15:57):
depend on the degree of taxi and the types of
measures that the government implements.
Speaker 10 (16:04):
If that's where it is heading.
Speaker 1 (16:06):
Tara does Sebastian Lecon, who actually have any choice in
this matter? Given the fractured political landscape and the difficulty
he's going to have to build support for a budget.
Is he going to have to do something to I suppose,
appeal to those who support these measures.
Speaker 10 (16:21):
Well, I think he's going to have to do something.
I think.
Speaker 9 (16:26):
The path he's trying to carve out to remain to
basically survive. He's the fifth prime minister in less than
two years. He needs support from the Socialist Party or
he needs TACIT support at least an agreement with the
extreme right, with Marine Lapenn's National Rally that they won't
(16:50):
support a no confidence vote. And I think that this
wealth tax has taken on sort of.
Speaker 10 (16:55):
A life of its own.
Speaker 9 (16:56):
It's been all consuming, It's brought people onto the streets.
It's you know, you listen to any talk show at
any time of day now and it's talking that the
topics of conversation are in you know, well, inequality and
you know who's going to pay France. What isn't going
to go away is that France has the biggest deficit
(17:18):
in the euro Area now and I think that the
markets are have really put France on on alert, and
I think Sebastian luquanu Is is going to have to
do something. France needs a budget for twenty twenty six,
and perhaps one of the answers might be to choose
(17:39):
some kind of tax that is going to affect the wealthy,
the ultra rich, but perhaps also the less rich the
millionaire set, and maybe that way he can he can
find a way to move forward and actually name a government,
because for the moment, Franz has a prime minister, but
doesn't have a finance minister.
Speaker 10 (17:58):
He doesn't have a cabin.
Speaker 1 (18:02):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (18:08):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (18:14):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (18:20):
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 (18:29):
I'm Stephen Carroll. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Day baq At podcast. Good morning,
It's Monday, the twenty ninth of September. I'm Caroline hepkea
in London and.
Speaker 1 (00:15):
I'm Stephen Caroline Brussels. Coming up today, the UK's Rachel
Reeves and Kir Starmer attempt a political fight back at
the Labor Party conference. Grounded in fiscal restraint and opposition
to Nigel Farage.
Speaker 2 (00:28):
Moldova's ruling Pro EU party is on track to win
reelection after Bloomberg uncovered unprecedented voter interference efforts by Moscow.
Speaker 1 (00:39):
Plus one way or another, the taxman is coming for
France's wealthiest. Why the tough choices facing the prime minister?
I mean the countries rich are likely to be paying more.
Speaker 2 (00:49):
Let's start with a roundup of our top stories.
Speaker 1 (00:52):
The UK's Prime Minister, Kir Starmer, is framing his political
survival as the country's best hope of defeating populism. Speaking
to the BBC as Labor Party members gathered in Liverpool
for their annual conference, Starmer said his government is in
a contest for Britain's soul, as he sought to draw
political battle lines with Nigel farajuas reform UK.
Speaker 3 (01:14):
We have not had a proposition like reform in this
country ever before, and you've seen it in France and
Germany and plenty of other countries. This is a different fight.
It is a fight about who we are as a country.
It goes to the soul of our future. It will
be heard and the effects will be therefore generations.
Speaker 1 (01:32):
Kir Starmer was speaking as his chancellor prepares to deliver
her conference speech later today. Confronting a black hole in
the public finances of at least twenty billion pounds, that's
left Rachel Reeves needing to draw plans for tax rises
in her autumn budget in November. At the same time,
she must convince voters that her economic program can offer
a compelling alternative to the populist right without risking her
(01:56):
reputation for fiscal prudence.
Speaker 2 (01:59):
Lab is sas a political fight back come as the
government prepares to set out what contributions foreign workers must
make to claim settled status in the UK. Home Secretary
shabanamah Mood will tell the party's conference today that migrants
will have to earn the right to claim so called
indefinite leave to remain. This status grants access to certain
(02:22):
welfare benefits and the ability to work in the UK.
Speaker 1 (02:27):
The government's efforts to tighten migration rules in the UK
comes as new data points to a weakening labor market.
Figures from the job Site indeed show that only fifty
six percent of postings included wage information in August. That's
a drop of nearly ten percentage points since the start
of the year, are the lowest chair since early twenty
twenty two. And let's say companies reluctance to disclose pay
(02:50):
suggests employers are no longer under pressure to boost wages.
Speaker 2 (02:54):
Now, let's go to Moldova, where the pro European ruling
party is set to be re elected, keeping the country
on its path towards EU membership amid strained relations with Russia.
President Maya Sandhu's Action and Solidarity Party secured forty nine
point six percent of votes. That's according to the unofficial
(03:14):
results from almost ninety eight percent of precincts. The pro
Russian Patriotic Electoral Bloc came in second with twenty four
point five percent. President Maya Sandhu spoke about Russian interference
after casting her vote over the weekend.
Speaker 4 (03:34):
We all know that the Russian Federation has been heavily
involved in the elections of the Republic of Moldova. I
have spoken and our institutions have spoken about various methods,
starting from attempts to buy votes, and hundreds of millions
of yuros have been spent for this. I've spoken about
the training of young people from the Republic of Moldova
to organized violence destabilizing actions.
Speaker 2 (03:53):
President Maya Sandhu speaking there via a translator as the
result was coming in. If confirmed, it would be a
major blow to Russia after it allegedly spent millions of
dollars to install pro Moscow forces in Moldova's capital.
Speaker 1 (04:14):
Cracks are beginning to show on the global stock rally,
according to research from Bloomberg Intelligence. That's even as a
second straight quarter of strong gains lifted indexes to record highs.
Bloomberg's team at a Bio has more.
Speaker 5 (04:27):
For now, global stocks are benefiting from lucer fed policy,
resilient earnings, and surging commodities, but trouble could be brewing
on the horizon. A Bloomberg Intelligence breadth gage of equities
has fallen a full standard deviation below its average. Typically,
this pattern has flagged overheated rallies and been a precursor
to slowing returns. According to our analyst, signs suggest the
(04:51):
recent rally may cool over the next thirty to ninety
trading days. In London, Teama at a Bio Bloomberg Radio.
Speaker 2 (04:59):
Team Europe have won Golf's Ryder Cup on American sore
for the first time since twenty twelve. Luke Donald's team
held off a spirited comeback from their hosts in New
York to win the trophy by fifteen points to thirteen.
Irishman Shane Lowry secured the trophy with a nail biting
(05:19):
final part.
Speaker 1 (05:20):
To retain the cup.
Speaker 6 (05:24):
Lowly does it, Lowly has it, Leaping and hollering and celebrating,
stills in at the last Shane Lowry to half the
match against Russell Henley and the cup has retained. These
are the moments you remember, and he'll remember it for
the rest of his days.
Speaker 2 (05:43):
So victory for the Europeans. The next Ryder Cup will
be held in Ireland in two years time. And those
are top stories for you this morning. Let's look at
the market's US and European stock futures are up this morning,
along with Asian equities largely. You've got the cospe hang
saying and the main benchmar in China or gaining this
as gold has hit another record. Hive also got the
(06:05):
Bloomberg Dollar Spot Index weakening by about a quarter of
one percent this morning. Crude all falling, with people familiar
saying that OPEC plus will weigh a November supply increase.
So looking at the bond markets this morning, tenny usls
down two basis points at full fifteen. Those are the markets.
Speaker 1 (06:24):
In a moment, We'll bring you more from the Labor
Party conference, plus why France's richest people have plenty to
worry about in the upcoming budget. There but other story
that we've been reading this morning from arcolleague Howard Schway.
You one who's been writing about sleep debt, the subject
very close to our hearts, Caroline. This is essentially what
experts say is every time you come in under seven
(06:45):
to nine hours of sleep that's required to stay healthy
and sane. I quote, this is the debt that you
build up and then have to spend much longer recovering.
At one estimates that Howard quotes in his piece from
a hospital group in the US, as it could take
four days to cover from just one hour of sleep debt.
I'm not doing the mats on this, Caroline. It's been
about thirteen years I think that I've been in sleep deficit.
(07:08):
So the prospect of he long it'll take me to
do that, I think I'll see you in about twenty
fifty five for our next show.
Speaker 2 (07:15):
Yeah, absolutely, my heart always thinks. And Howard writes about
sleep deficits. But it's husually important, isn't it, Just like
you know, eating and exercising, sleep is massively important. But
Howard also charts a little bit of the history of
his own life and how it came about, you know,
as an editors of writer being up all night, and
that it was those habits that even now as he's
(07:37):
i'll say it a little bit older now that those
habits have sort of stuck for him.
Speaker 1 (07:42):
So yeah, look, I as you and anyone who's ever
met me will no I can talk for hours about
sleep hygiene. It becomes an obsession when you work the
sort of hours that we work for this as well.
But I really like Howard has a lot of practical
tips in this piece as well about how you can
basically act as if you are sleeping, which is a
(08:03):
good method to try and get yourself to sleep. I
will be trying that and I will report.
Speaker 7 (08:07):
Back suns great.
Speaker 2 (08:09):
Look, wonder whether there's any sleep deficit up in Liverpool.
Let's bring you more from our Labor from the Labor
Party conference that's taking place in Liverpool. Only fourteen months
into office, Prime Minister Kis Sarma and Chancellor Rachel Reeves
have significant challenges fiscally and with their popularity and interviews,
as the conference got underway, Sarma took on his biggest rival,
(08:33):
Nigel Farag's Reform UK Are. UK Politics reporter James Hawcock
joins us now from Liverpool. James, how crucial is this
conference for the Prime Minister.
Speaker 7 (08:45):
I'll probably have some sleep debt after that.
Speaker 8 (08:47):
Look, the Prime Minister goes into this conference as the
most unpopular prime minister on record according to IPSOS polling,
and with rivals outside of the party in Reform Pole
higher than him, and inside with the man to meet,
Andy Burnham, who said MPs have been telling him over
the summer he could do a better job. Look, I
was at a fringe event last night with the Mayor
(09:08):
of London seek Khan, where he said conference is a
window for the country to see what Labour actually stand for,
and he followed it up by thanking both delegates and
journals for coming, as well as spectators who love watching
blood sports. So that gives you a flavor of quite
how febrile the environment is here and Starmer and his
(09:28):
Chancellor Rachelbuthes have to set out what is a more
positive vision for their government going forward.
Speaker 2 (09:34):
Yeah, and so in terms of what we're expecting from
the Chancellor today and her speech, it's a very far cry,
perhaps from how she was when she was Chancellor in waiting.
Speaker 8 (09:46):
It's funny you say that, Carolyn, because there are a
remarkable number of similarities to last year.
Speaker 7 (09:51):
We go in expecting a large.
Speaker 8 (09:53):
Black hole the shortfalling government finances from both an OBR
downgrade there's been long feared might come, and also welfare
spending similar to last year where there were big fears
about Conservative overspend going into the budget. There are questions
about tax over whether Labour's manifesto from the election will hold,
and there are also big plans apparently later today for
the Chancellor to announce changes to youth unemployment to try
(10:16):
and get more people back into work to boost the
long term supply curve of the economy. So although much
has changed in terms of the sort of political outlook,
in many ways, the Chancellor still trying to do very
similar things to what she was doing last year.
Speaker 7 (10:31):
The question is if she can pull it off.
Speaker 1 (10:35):
That's the focus on the Chancellor today, James. But this,
as you've been laying out for us, is such a
big challenge for the Prime Minister now as well. He's
been criticized for not taking bold enough action on immigration
and the economy. He's spoken about reform UK and his
conversations running up to this event as well, and you've
also been speaking to some of those about the expectations
(10:57):
and the I suppose the bar that the Prime Minister
has to meet at this event.
Speaker 8 (11:01):
The question all the journals here are asking, Stephen, is
is this a genuine moment of jeopardy for the prime minister?
Speaker 7 (11:07):
Is his job at risk?
Speaker 8 (11:08):
And that I talked to Nick Williams, a former Downstreet
advisor who helped write Labour's economic manifesto.
Speaker 7 (11:14):
He says it's a tight spot for the leader and
the Chancellor.
Speaker 8 (11:18):
It is definitely the case that Kier and Rachel go
into this conference with their sort of.
Speaker 7 (11:21):
Backs against the wall.
Speaker 8 (11:22):
But one thing I know about the two of them
is that when they're backs against their will against the wall,
their instinct is to come out swinging. Now, coming out
swinging in this case is calling reforms policies racist and
saying labor is in a fight for the soul of
the country. Those are comments from Keir Starmer over the weekend,
and they are introducing new policy to try and fix that.
(11:43):
The tackle immigration and the economy. Two of their areas
they're seen as weak ist one and that is ID cards.
And now this morning we're hearing there is going to
be new policies around stricter conditions if you're allowed to
settle in the UK as a foreign migrant. That's including
having a clean criminal record, paying tax, not being on benefits,
and having a highest standard of English before you can
(12:04):
be considered to resettle in the country.
Speaker 2 (12:07):
Yeah, it's an interesting one, isn't it. The Prime Minister
effectively calling it a kind of fight for the nation's soul.
Thank you so much for being with us. That is
Bloomberg's James Wilcock, who is at the Labour Party conference
in Liverpool. Stay with us more from Bloomberg daybaqube coming
up after this.
Speaker 1 (12:28):
France's new Prime minister is under pressure from the left,
the extreme right, and even his own centrist allies to
extract more tax from the country's wealthiest residents. Sebastian laklu
is facing difficult decisions as he prepares his twenty twenty
six budget that aims to cut the largest deficit in
the euro Area. Bloomberg's Tara Patel covers Wealth for Bloomberg
(12:49):
from Paris. She joins us now for more. Tara, good morning.
What are then the proposals being considered by the Prime minister?
Speaker 9 (12:56):
The proposals on the table and off the table on
a very very wide gamut. They're ranging from an extremely
broad proposal named for an economist called Gabriel Zuckman. This
is from the Socialist Party and it would it would
tax basically all personal assets of somebody who has more
(13:19):
than one hundred million. Two very very very targeted proposals
that would for instance, put holding companies on the table
or maybe maybe take away certain tax niches to avoid
what many critics have called over optimization of taxes. I
(13:41):
think what we know, we've had a little bit more
clarity about what the Prime minister is thinking this time.
Two days ago he came out and said that he
really is not in favor. He's he's definitely against a
very broad based wealth tax for France, which has tried before,
(14:02):
but he is willing to consider perhaps more targeted measures.
Speaker 2 (14:08):
Yeah, as you say, frans has tried wealth taxes in
the past, Can they work this time or how do
proponents say that they would be more effective this time around.
Speaker 10 (14:20):
Well, it's very difficult to say.
Speaker 9 (14:22):
You know, I think people who are backing this kind
of wealth tax, it's it's really coming from from the
left more than anything else. So that's why it really
does hark back to Francois Mitterrent when he first came
into power. He was the first socialist president post war
for France, and really one of the one of the
reasons he won was because he came came in promising
(14:45):
that he would he would he would make the rich
pay more. And and this debate that's going on now
that really started last year during the election campaign, has
come on fast and furiously, and I think that the
Socialist Party again has really latched onto this issue as
(15:06):
something that can bring people into the streets and speaks
to a very broad swath of France's population. Can they
work this time? I think, like any policy, it depends
on the way that the government tries to put it
in place, if that's what they think they need to do.
(15:27):
We've all seen in the UK in particular, when the
non don for instance, measures.
Speaker 10 (15:35):
Are starting to be whittled away.
Speaker 9 (15:37):
The ultra rich are a very very mobile population and
if there's a particular tax that comes in that they
don't like, well it's very very easy just to pick
up and to go to and find places where the
tax situation may be a little bit more favorable to people.
So I think in France's case, it's really going to
(15:57):
depend on the degree of taxi and the types of
measures that the government implements.
Speaker 10 (16:04):
If that's where it is heading.
Speaker 1 (16:06):
Tara does Sebastian Lecon, who actually have any choice in
this matter? Given the fractured political landscape and the difficulty
he's going to have to build support for a budget.
Is he going to have to do something to I suppose,
appeal to those who support these measures.
Speaker 10 (16:21):
Well, I think he's going to have to do something.
I think.
Speaker 9 (16:26):
The path he's trying to carve out to remain to
basically survive. He's the fifth prime minister in less than
two years. He needs support from the Socialist Party or
he needs TACIT support at least an agreement with the
extreme right, with Marine Lapenn's National Rally that they won't
(16:50):
support a no confidence vote. And I think that this
wealth tax has taken on sort of.
Speaker 10 (16:55):
A life of its own.
Speaker 9 (16:56):
It's been all consuming, It's brought people onto the streets.
It's you know, you listen to any talk show at
any time of day now and it's talking that the
topics of conversation are in you know, well, inequality and
you know who's going to pay France. What isn't going
to go away is that France has the biggest deficit
(17:18):
in the euro Area now and I think that the
markets are have really put France on on alert, and
I think Sebastian luquanu Is is going to have to
do something. France needs a budget for twenty twenty six,
and perhaps one of the answers might be to choose
(17:39):
some kind of tax that is going to affect the wealthy,
the ultra rich, but perhaps also the less rich the
millionaire set, and maybe that way he can he can
find a way to move forward and actually name a government,
because for the moment, Franz has a prime minister, but
doesn't have a finance minister.
Speaker 10 (17:58):
He doesn't have a cabin.
Speaker 1 (18:02):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (18:08):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (18:14):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (18:20):
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 (18:29):
I'm Stephen Carroll. 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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