November 25, 2025 • 19 mins
On today's podcast:
(1) Russia and Ukraine exchanged fire early Tuesday with heavy air raids on Kyiv and assaults on southern Russian areas, just hours after President Donald Trump struck a positive tone on prospects for a ceasefire deal.
(2) The European Union’s antitrust chief ruled out easing the bloc’s tech rulebook, after US Commerce Secretary Howard Lutnick said Brussels needed to change its digital regulations in order to get a deal to lower steel and aluminum tariffs.
(3) President Donald Trump held back-to-back calls with the leaders of China and Japan, as escalating tensions over Taiwan threaten to derail his weeks-old trade truce with Beijing.
(4) Nvidia shares fell on a report that Meta Platforms is in talks to spend billions on Google’s AI chips, suggesting the internet search leader is making headway in efforts to rival the industry’s bestselling AI accelerator.
(5) Chancellor Rachel Reeves will slash the amount Britons can save in their tax-free cash ISA each year to £12,000 in a bid to get households investing more in UK stocks.
(6) Pret’s CEO is searching for the right recipe for the chain in a post-pandemic world where inflation remains high, competition is stiff and consumers are feeling the pinch.
Podcast Conversation: Is Food No Longer What Makes a Great Restaurant Great?
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Boombag Day BAQ podcast. Good morning, It's Tuesday,
the twenty fifth of November. I'm Caroline Hepka in London.
Coming up today, Missiles and drones bombard Kiev as Ukraine
strikes southern Russia. Following talk of big progress on a
peace deal, President Trump holds back to back calls with
the leaders of China and Japan as tensions flair. Plus
(00:33):
Food for Thought, Why Preta, Marges's revival recipe, hinges on
a meal deal, and thirteen pounds salads. Let's start with
a roundup of our top stories. Russia and Ukraine exchanged
heavy far this morning as both sides confronted strikes. Ukraine's
air defenses worked to protect the capital Kiev from heavy bombardment,
(00:57):
while a region on Russia's Black Sea coast also reportedly
came under sustained drone attack. The surgeon hostilities comes just
hours after President Donald Trump struck a positive tone on
the proposals and prospects for a cease far, saying in
a social media post that big progress was being made. Meanwhile,
(01:19):
Ukrainian President Zelinsky says that a proposed US plan has
correct points, but sensitive issues still need to be discussed
directly with Trump.
Speaker 3 (01:30):
Of course, we.
Speaker 4 (01:32):
All continue working with partners, especially in the United States,
and look for compromises that's strengthen but not weaken US.
Speaker 2 (01:42):
President Zelinsky spoke as Ukrainian and European officials scrambled to
draft a counter offer. In the days since the White
House Special ENVOYE. Steve Witchkov and his Russian counterpart killed Dmitriyev,
hammered out an initial twenty eight point peace plan. Bloomberg
understands that the result is now a streamlined nineteen point plan,
(02:03):
which Russian officials have already dismissed as a non starter.
The European Union has rejected a US demand to ease
tech regulation in return for lower steel tariffs. In a
statement on Monday, the EU's anti trust chief, Theresa Ribera
said the bloc's digital rulebook is quote not up for negotiation.
(02:25):
That's after US Commerce Secretary Howard Latinik told Bloomberg his
administration could relax levies in return for the rollback, So.
Speaker 3 (02:34):
We're talking to him about take your foot off the
regulatory statement, build those data centers in America and in
exchange for that, we'll come up with a cool steel
and aluminum deal that we'll all be together.
Speaker 2 (02:48):
Howard Latinik, speaking there. The news follows President Trump's characterization
of EU digital regulation as the sort of so called
trade barrier that his tariffs are intended to target. The
US imposes a fifty percent levy on European imports of metals.
Despite Trump's threat, the EU says that the rules are
(03:09):
to ensure fair markets and to protect consumers' rights, and
they have pressed ahead with enforcement, including recent finds against
Apple and Meta.
Speaker 5 (03:20):
Well.
Speaker 2 (03:20):
President Trump has held back to back calls with the
leaders of China and Japan as tensions rise over Taiwan.
According to Chinese state media, China Shijingping told President Trump
the island's return to China is an essential part of
the post World War II international order. Following that conversation,
Japanese Prime Minister san A Takichi said the US President
(03:43):
updated her on his talks reaffirming US Japanese ties. Adam
Fara is senior geoeconomics and analyst for Asia Pacific at
Bloomberg Economics. He says the outlook remains uncertain.
Speaker 6 (03:58):
The real risk here is that this escalates further. Japan
relies on China as a principal trading partner and more
importantly significantly on China's rare earth and critical minerals, which
could devastate the advanced technology industry and auto industry if
they were to be pulled back. But so far right now,
we're not expecting, We're not seeing the signs that the
(04:19):
China is looking to escalate that far right now.
Speaker 2 (04:21):
Bloomberg Economics is Adam Fara speaking there. The ongoing route
between Japan and China over Taiwan is injecting fresh uncertainty
into the Trump Ji relationship, just weeks after leaders of
the world's largest economies reached a trade truce. Treasury Secretaries
Scott best And said earlier this month that a rare
Earth deal between the two countries was hopefully going to
(04:45):
be completed by Thanksgiving. Those talks on key implementation details
continue now. Meta is reportedly in talks to spend billions
of dollars on Google's AI chips, in a sign that
Nvidia's semiconducted dominance may be challenged. Shares in Nvidia fail
in late trading after the story was reported by the
(05:06):
tech outlet the information. Bloomberg's tech analyst Robert Lee says
competition is almost inevitable for in Nvidia.
Speaker 7 (05:13):
In video simply put as a monopoly at the moment,
more by accident than design, had an approximate ten year
technological lead, has been investing for far longer than anybody else,
and therefore it's got the market to itself at the moment.
You know, it's been generating I think what economists would
terms super normal profits. They're not sustainable at that level
in the long term. So that's clearly going to attract
(05:36):
competition or alternative suppliers.
Speaker 2 (05:39):
Robert Lee speaking there The challenge too in Vidia, the
world's largest company, comes as it also faces pushback in
the investment world. In Vidia has been sending memos to
Wall Street analysts after famous investor Michael Burry accused the
company of diluting its stock. To the UK, now Chancellor
Rachel Reeves will cut the amount that Britain's can save
(05:59):
tax free in a bid to get more people investing
in stocks. Bluemaker has learned that the twenty thousand pounds
annual limit on cash individual savings accounts known as iser's
will be cut to twelve thousand pounds At tomorrow's budget.
Reeves is expected to announce multiple tax rises at the
fiscal event, something the head of Britain's Confederation of British Industry,
(06:23):
Rain Newton Smith, has railed against.
Speaker 8 (06:26):
So if growth is your priority, make hard choices for it,
Prove it against opposition, against.
Speaker 2 (06:33):
Short term politics, be it on welfare, bit.
Speaker 5 (06:36):
Pension increases, Show the markets you mean business. All short
term politics leads to is long term decliente and this
country cannot afford another decade of stagnation.
Speaker 2 (06:49):
Rain Newton Smith's comments are a sign of the deep
misgivings from the business community ahead of the budget. At
the same event, the Business Secretary Peter Karl apologize for
the uncertainty cause by the speculation around tax hikes in
the budget. Those are our top stories for you today.
In markets, global stocks are gaining. We see the MSCI
(07:13):
Asia Pacific Index at the moment up by four tenths
of one percent. Yesterday in the usn Video stock slipped
one and a half percent, Alphabet's rose by two point
six percent. US and European stock futures are both in
the red this morning. Also, I note that European defense
stocks have been struggling, been one of the big gainers
over the course of this year, but a Goldman SAX
(07:34):
basket of the top defense stocks in Europe is now
down about twenty five percent from the early October peak. Meanwhile,
the fedz Christopher Waller says that he's advocating an interest
rate cut in December, so that view seems to be
piling up in terms of ten year treasury yields, where
at four spots zero three yields up a basis point,
gold typically benefiting from lower rates of courses up by
(07:56):
three tenths of one percent this morning at four one
hundred and fifty one dollars. Those are the markets now.
In a moment, we're going to bring you more on
the latest to push Ukraine and Russia towards some kind
of ceasefire deal, as well as why Peta marje is
looking at thirteen pounds salads to drive its revival. But
(08:20):
before we get to that, there's always a story that
catches my eye, and actually it's still on the food theme.
Maybe there's always a food theme at this time in
the morning. For me, it's going to a restaurant about
eating or is it about the spectacle. Bloomberg's food critic
Kate Krada says that she knew that people dining out
wanted a memorable experience, but actually she didn't realize how
(08:44):
much of a full on obsession the spectacle has really
become until she visited eleven Madison Park in New York.
She says it started with the potato, and then Kate
goes on to describe what the restaurant did to the
humble spud, cross wire sliced, smoke infused, dusted, and displayed.
She says it was just a showstopper. The issue is
(09:08):
the potato was not fully cooked, and she actually gave
eleven Madison Park not great marks for the food, but
she said that the spectacle did blow her away. And
of course, anyone who knows the restaurant industry knows that
eleven Madison Park emp often has won three Mechnat stars.
(09:28):
It was a voted the world's best restaurant in twenty seventeen,
so it's kind of really up there. But she also
says that there are lots of other restaurants now that
are emulating this. You know, servers who feel like friends,
they entertain you. The carbone Rivieria, which is a new
restaurant in Las Vegas, which has a speedboat to take
(09:48):
you around the lake outside. No wonder, maybe food at
restaurants is feeling a bit like an afterthought, So I
quite fancy the speedboat dinner experience anyway. Link to it
in our show notes for you now. An initial US
facts peace plan for Ukraine has been paired to nineteen
proposals with European allies warning against a Russia and Russia's war.
(10:13):
But Moscow has bought at the plan and overnight Russia
and Ukraine exchanged a lot of fart joining US. Now.
Has Bimberg's chief europe correspondent Oliver Crook to talk about
this Oli Good morning. There was vehement opposition to the
witkof Dmitriev twenty eight point planned by the Europeans that
has been reworked. Is there any way forwards given Russia's rejection?
(10:36):
What's the US going to do next?
Speaker 1 (10:38):
Well, that's the big question about what the United States
is going to do next. We can give you sort
of the sequencing of what the last kind of thirty
six hours in the next few hours will look like.
So obviously there were those long discussions in Geneva between
the US delegation and the Ukrainians. We understand the Europeans
were sort of there on the side, weren't part of
the principal discussions, but we're sort of advising at the sidelines.
There were apparently a couple of different kind of peace
(10:59):
plans that were circulating after that. There was a European one,
there was the one that the Ukrainians and the Americans
had worked together, and we seem to have settled on
this nineteen point plan that is sort of the considered
the sort of living document it seems that is currently
now being under a review by the United States and
eventually will make us way back to Russian As you say,
the Russians have been sort of very dismissive, sort of
(11:20):
out of hand about that proposal as it stands. We
heard from Zelenski last night in his nightly addressed. He's
saying that after the Geneva talks, there is no longer
the twenty eight point plan. There's the nineteen to one.
Many of the right elements have been taken into account
into that framework. But what that framework did do is
kick down the road a number of the most pic
contentious political issues for the President of the United States
(11:40):
and President Zelenski to discuss between the two of them
in person, ideally at some point or on the phone.
And I spoke to one of Zelenzi's aids yesterday saying
that that call could come over the next few days.
Where the action now turns is in Abu Dhabi, where
we understand that the Army Secretary Dan Driscoll, who is
now playing a much larger role in these negotiations. We
understand ad to reports that he met with some Ukrainians
(12:02):
in Abu Dhabi last night, that he will be meeting
with some of the Russian officials a little bit later
today to try to hammer out some of these differences.
But again, all of that being said, this is still
a very sort of actively debated document, living as we say,
and ever evolving. Though all of that being said, I
think that the Thursday Thanksgiving timeline is probably a little
bit ambitious in terms of actually getting all of this
(12:23):
over the line.
Speaker 2 (12:25):
Yes, absolutely, I known Dan Driscoll, interesting an ally of
JD Vance, also European leaders, though they have pushed back
against this twenty eight point plan, but they have got
this kind of maximalist rhetoric with quite gradualist measures, some
might argue. And so the question is also about the
(12:48):
frozen Russian assets. Is anything changing on the European side, Well,
it sort of depends who you ask.
Speaker 1 (12:54):
I mean, they're going to hold a sort of coalition
of the willing Call today, which is obviously greater than
just the Europeans. So that is going to be where
the European discussion goes. That's about fifty countries. This will
be assembled virtually, you know, it will be attended by Starmer,
m Cooin, all the sort of usual suspects in terms
of trying to make forward progress on other ways that
they can support Ukraine, ways that they could lobby the
United States. But you point out once again and I
(13:16):
feel like a broken record coming on every day and
talking about this, but the one point where the Europeans
can exert leverage can make a massive difference to these
negotiations to the Ukrainians is by figuring out what to
do with the one hundred and forty billion euros worth
of Russian assets that are sitting in Belgium that there
has been no consensus on among the EU twenty seven
on how to get that sort of loan backed by
(13:36):
those assets and get it to Ukraine. As we've said many,
many times, this would change the dynamic fundamentally for the
Ukrainians if they had one hundred and forty billion euros
in the bank. I spoke to the Lithuanian Foreign minister
yesterday who said, listen, we need to be realistic here
in Europe. In order to get a seat at this
table in twenty twenty five with Donald Trump, you need
to earn your seat at the table. And the only
way that we can earn our seat at the table
(13:57):
is to move on those Russian assets. And that's what
we should be doing today.
Speaker 2 (14:01):
Okay, that's one view, then on what the Europeans should
be doing. What about the state of the conflict. Though
Russia's economy is barely growing given the war spending, Ukraine
is struggling with manpower on the front line. The conflict
is there and it's face.
Speaker 1 (14:18):
Absolutely and we see you overnight over the last week.
I mean, there's been a number of reports, especially the
mid middle of last week, where a number of missiles
hitting apartment buildings, killing many civilians. Overnight, Kiv getting absolutely pummeled.
The Ukrainians in returning fire into Russia that downed most
a great majority of those drones. But this is a
war that is of course raging very very violently, continues
(14:40):
to be fought on the front lines for very sort
of marginal gains on the Russian side, But they have
been advancing throughout all this discussion. I think that the
sort of big question here will be if the United States'
position changes on what we have, which is this bill,
this bipartisan bill that sits right now in the US
Senate about those bone crushing sanctions that post put forward
by Linz. This is something that would pass in the
(15:02):
United States. It has support from the Democrats and the Republicans.
And a reminder, that is for sanctions on anybody buying
Russian crude oil or gas from the United States five
hundred percent tariffs, and we should say, Caroline. Something that
we sort of have missed with all of this sort
of deluge of the news over the twenty eight point
plan that on Friday last Friday is when those Luke
Oil and Roznev sanctions went into effect for the first time.
(15:23):
Those are absolutely massive in terms of the damage they
will do to the Russian economy of course, it is
a long sort of term damage that it will do.
It will not be tomorrow. But when I spoke to
the US Envoy to NATO, Matthew Whitaker, he says that
this is the thing that the Russians complained the most about.
This is where it hurts them the most.
Speaker 2 (15:38):
Interesting. Yeah, and also that President Trump and G when
they spoke on that phone call that we mentioned about
Japan and China, they also did discuss President g and
President Trump the Ukraine situation too, So yeah, there's also
that layer to add Ollie. Thank you so much for
being with it. Spimberg's chief Europe correspondent Oliver Krook with
(15:59):
the latest when it comes to the path ahead for Ukraine.
Stay with us. More from Bloomberg Daybakeuobe coming up after
this now six pounds meal deals and thirteen quid for
a salad. Peta Marge's chain of five hundred UK stores
are trying different approaches under CEO Pano Christo. Joining us
(16:19):
now to discuss is Bloomberg's consumer reporter Maddie Parker for
something a bit different. Maddie, good morning. Why is Peta
Marje You know, the high street chain actually in need
of a revival do we think.
Speaker 8 (16:31):
If you look at pret's business model, obviously it realizes
a lot on consumers coming to work then the means
to prep for their breakfast. Maybe they're popping out for
some lunch and treating themselves to kind of a price
once a little bit higher than what supermarkets offer. And
clearly in the post pandemic world, obviously a fewer people
actually coming into work. Footfall in the high street has
falln a little bit for prep So that's one of
(16:53):
the factors that it's facing. Obviously it's spacing other things
like higher taxes. We've got some of the highest energy
costs in Europe and obviously the big question of business
rates for tomorrow's budget. So kind of facing kind of
a bit of a marriage of factors that they have
to navigate, and their CEO is kind of trying to
search for a right recipe for the chain in this
kind of post pandemic world. And yeah, as you mentioned,
(17:13):
some of those offerings of meal deals and salads might
be the way to go.
Speaker 2 (17:17):
Yeah, meal deals are more common in the supermarkets in
the UK, aren't they. So what are the key elements
then to this attempted revival plan.
Speaker 8 (17:26):
So, yeah, as you mentioned, the meal deal is a
kind of a supermarket staple here in the UK, and
their CEO panel Christian says that the British consumer loves
a meal deal, which may well be the case. I
certainly do. The kind of price point that they're trialing
out in their store for this meal deal, which will
include a sandwich, drink and a snack, is kind of
between six and seven pounds. That is pricier than what
(17:46):
most supermarkets offer, which kind of usually starts at about under
four pounds. So that's going to be one of the
things that they're hoping will kind of attract customers and
laer them in. The other thing that you mentioned is
these new salerds. They call them super plates, which is
quite a fun name. But they're starting and they're kind
of costing and consumers as much as twelve pounds and
ninety five, which some people and I spoke to customers
are saying that that seems a little bit high. But yeah,
(18:08):
as I say, they're trying to kind of lure kind
of different kinds of customers in and yeah, offer a
kind of broad range of products.
Speaker 2 (18:14):
Oh, the meal deal, I mean, is that typically something
only the UK does. I don't know, it's usually like yes,
as you say, sandwich drink plus snag. What about the
budget though, pet Marje and are the high street chains?
I mean, we've been hearing a lot from businesses about
how they're quite worried, is prep worried.
Speaker 8 (18:33):
Pret is sort of very much that they're you know,
trying to persuade the Chancellor for tomorrow to not kind
of dent very fragile consumer confidence at the moment. It's
already said that after the lost budget that they were
having to restructure after obviously national insurance contributions are raised,
that was higher minimum wage and that really hit the
sector with kind of billions of the extra anual costs.
So they are very much along with their kind of
(18:54):
high street partners and other coffee chains, trying to say
to the Chancellor listen, this is not the time to
try and you know, it's not the chance to try
and kind of hit back consumer confiden where it's already
and a bit of a low and actually further tax
rises in particularly that crucial business grease question could kind
of add to their pain further.
Speaker 5 (19:11):
This is Bloomberg Daybreak Europe. Your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:17):
Look for us on your podcast feed every morning, on Apples, Spotify,
and anywhere else you get your podcasts.
Speaker 5 (19:23):
You can also listen live each morning on London Dab Radio,
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Speaker 2 (19:29):
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Speaker 5 (19:38):
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the news you need to start your day right here
on Bloomberg Daybreak Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Boombag Day BAQ podcast. Good morning, It's Tuesday,
the twenty fifth of November. I'm Caroline Hepka in London.
Coming up today, Missiles and drones bombard Kiev as Ukraine
strikes southern Russia. Following talk of big progress on a
peace deal, President Trump holds back to back calls with
the leaders of China and Japan as tensions flair. Plus
(00:33):
Food for Thought, Why Preta, Marges's revival recipe, hinges on
a meal deal, and thirteen pounds salads. Let's start with
a roundup of our top stories. Russia and Ukraine exchanged
heavy far this morning as both sides confronted strikes. Ukraine's
air defenses worked to protect the capital Kiev from heavy bombardment,
(00:57):
while a region on Russia's Black Sea coast also reportedly
came under sustained drone attack. The surgeon hostilities comes just
hours after President Donald Trump struck a positive tone on
the proposals and prospects for a cease far, saying in
a social media post that big progress was being made. Meanwhile,
(01:19):
Ukrainian President Zelinsky says that a proposed US plan has
correct points, but sensitive issues still need to be discussed
directly with Trump.
Speaker 3 (01:30):
Of course, we.
Speaker 4 (01:32):
All continue working with partners, especially in the United States,
and look for compromises that's strengthen but not weaken US.
Speaker 2 (01:42):
President Zelinsky spoke as Ukrainian and European officials scrambled to
draft a counter offer. In the days since the White
House Special ENVOYE. Steve Witchkov and his Russian counterpart killed Dmitriyev,
hammered out an initial twenty eight point peace plan. Bloomberg
understands that the result is now a streamlined nineteen point plan,
(02:03):
which Russian officials have already dismissed as a non starter.
The European Union has rejected a US demand to ease
tech regulation in return for lower steel tariffs. In a
statement on Monday, the EU's anti trust chief, Theresa Ribera
said the bloc's digital rulebook is quote not up for negotiation.
(02:25):
That's after US Commerce Secretary Howard Latinik told Bloomberg his
administration could relax levies in return for the rollback, So.
Speaker 3 (02:34):
We're talking to him about take your foot off the
regulatory statement, build those data centers in America and in
exchange for that, we'll come up with a cool steel
and aluminum deal that we'll all be together.
Speaker 2 (02:48):
Howard Latinik, speaking there. The news follows President Trump's characterization
of EU digital regulation as the sort of so called
trade barrier that his tariffs are intended to target. The
US imposes a fifty percent levy on European imports of metals.
Despite Trump's threat, the EU says that the rules are
(03:09):
to ensure fair markets and to protect consumers' rights, and
they have pressed ahead with enforcement, including recent finds against
Apple and Meta.
Speaker 5 (03:20):
Well.
Speaker 2 (03:20):
President Trump has held back to back calls with the
leaders of China and Japan as tensions rise over Taiwan.
According to Chinese state media, China Shijingping told President Trump
the island's return to China is an essential part of
the post World War II international order. Following that conversation,
Japanese Prime Minister san A Takichi said the US President
(03:43):
updated her on his talks reaffirming US Japanese ties. Adam
Fara is senior geoeconomics and analyst for Asia Pacific at
Bloomberg Economics. He says the outlook remains uncertain.
Speaker 6 (03:58):
The real risk here is that this escalates further. Japan
relies on China as a principal trading partner and more
importantly significantly on China's rare earth and critical minerals, which
could devastate the advanced technology industry and auto industry if
they were to be pulled back. But so far right now,
we're not expecting, We're not seeing the signs that the
(04:19):
China is looking to escalate that far right now.
Speaker 2 (04:21):
Bloomberg Economics is Adam Fara speaking there. The ongoing route
between Japan and China over Taiwan is injecting fresh uncertainty
into the Trump Ji relationship, just weeks after leaders of
the world's largest economies reached a trade truce. Treasury Secretaries
Scott best And said earlier this month that a rare
Earth deal between the two countries was hopefully going to
(04:45):
be completed by Thanksgiving. Those talks on key implementation details
continue now. Meta is reportedly in talks to spend billions
of dollars on Google's AI chips, in a sign that
Nvidia's semiconducted dominance may be challenged. Shares in Nvidia fail
in late trading after the story was reported by the
(05:06):
tech outlet the information. Bloomberg's tech analyst Robert Lee says
competition is almost inevitable for in Nvidia.
Speaker 7 (05:13):
In video simply put as a monopoly at the moment,
more by accident than design, had an approximate ten year
technological lead, has been investing for far longer than anybody else,
and therefore it's got the market to itself at the moment.
You know, it's been generating I think what economists would
terms super normal profits. They're not sustainable at that level
in the long term. So that's clearly going to attract
(05:36):
competition or alternative suppliers.
Speaker 2 (05:39):
Robert Lee speaking there The challenge too in Vidia, the
world's largest company, comes as it also faces pushback in
the investment world. In Vidia has been sending memos to
Wall Street analysts after famous investor Michael Burry accused the
company of diluting its stock. To the UK, now Chancellor
Rachel Reeves will cut the amount that Britain's can save
(05:59):
tax free in a bid to get more people investing
in stocks. Bluemaker has learned that the twenty thousand pounds
annual limit on cash individual savings accounts known as iser's
will be cut to twelve thousand pounds At tomorrow's budget.
Reeves is expected to announce multiple tax rises at the
fiscal event, something the head of Britain's Confederation of British Industry,
(06:23):
Rain Newton Smith, has railed against.
Speaker 8 (06:26):
So if growth is your priority, make hard choices for it,
Prove it against opposition, against.
Speaker 2 (06:33):
Short term politics, be it on welfare, bit.
Speaker 5 (06:36):
Pension increases, Show the markets you mean business. All short
term politics leads to is long term decliente and this
country cannot afford another decade of stagnation.
Speaker 2 (06:49):
Rain Newton Smith's comments are a sign of the deep
misgivings from the business community ahead of the budget. At
the same event, the Business Secretary Peter Karl apologize for
the uncertainty cause by the speculation around tax hikes in
the budget. Those are our top stories for you today.
In markets, global stocks are gaining. We see the MSCI
(07:13):
Asia Pacific Index at the moment up by four tenths
of one percent. Yesterday in the usn Video stock slipped
one and a half percent, Alphabet's rose by two point
six percent. US and European stock futures are both in
the red this morning. Also, I note that European defense
stocks have been struggling, been one of the big gainers
over the course of this year, but a Goldman SAX
(07:34):
basket of the top defense stocks in Europe is now
down about twenty five percent from the early October peak. Meanwhile,
the fedz Christopher Waller says that he's advocating an interest
rate cut in December, so that view seems to be
piling up in terms of ten year treasury yields, where
at four spots zero three yields up a basis point,
gold typically benefiting from lower rates of courses up by
(07:56):
three tenths of one percent this morning at four one
hundred and fifty one dollars. Those are the markets now.
In a moment, we're going to bring you more on
the latest to push Ukraine and Russia towards some kind
of ceasefire deal, as well as why Peta marje is
looking at thirteen pounds salads to drive its revival. But
(08:20):
before we get to that, there's always a story that
catches my eye, and actually it's still on the food theme.
Maybe there's always a food theme at this time in
the morning. For me, it's going to a restaurant about
eating or is it about the spectacle. Bloomberg's food critic
Kate Krada says that she knew that people dining out
wanted a memorable experience, but actually she didn't realize how
(08:44):
much of a full on obsession the spectacle has really
become until she visited eleven Madison Park in New York.
She says it started with the potato, and then Kate
goes on to describe what the restaurant did to the
humble spud, cross wire sliced, smoke infused, dusted, and displayed.
She says it was just a showstopper. The issue is
(09:08):
the potato was not fully cooked, and she actually gave
eleven Madison Park not great marks for the food, but
she said that the spectacle did blow her away. And
of course, anyone who knows the restaurant industry knows that
eleven Madison Park emp often has won three Mechnat stars.
(09:28):
It was a voted the world's best restaurant in twenty seventeen,
so it's kind of really up there. But she also
says that there are lots of other restaurants now that
are emulating this. You know, servers who feel like friends,
they entertain you. The carbone Rivieria, which is a new
restaurant in Las Vegas, which has a speedboat to take
(09:48):
you around the lake outside. No wonder, maybe food at
restaurants is feeling a bit like an afterthought, So I
quite fancy the speedboat dinner experience anyway. Link to it
in our show notes for you now. An initial US
facts peace plan for Ukraine has been paired to nineteen
proposals with European allies warning against a Russia and Russia's war.
(10:13):
But Moscow has bought at the plan and overnight Russia
and Ukraine exchanged a lot of fart joining US. Now.
Has Bimberg's chief europe correspondent Oliver Crook to talk about
this Oli Good morning. There was vehement opposition to the
witkof Dmitriev twenty eight point planned by the Europeans that
has been reworked. Is there any way forwards given Russia's rejection?
(10:36):
What's the US going to do next?
Speaker 1 (10:38):
Well, that's the big question about what the United States
is going to do next. We can give you sort
of the sequencing of what the last kind of thirty
six hours in the next few hours will look like.
So obviously there were those long discussions in Geneva between
the US delegation and the Ukrainians. We understand the Europeans
were sort of there on the side, weren't part of
the principal discussions, but we're sort of advising at the sidelines.
There were apparently a couple of different kind of peace
(10:59):
plans that were circulating after that. There was a European one,
there was the one that the Ukrainians and the Americans
had worked together, and we seem to have settled on
this nineteen point plan that is sort of the considered
the sort of living document it seems that is currently
now being under a review by the United States and
eventually will make us way back to Russian As you say,
the Russians have been sort of very dismissive, sort of
(11:20):
out of hand about that proposal as it stands. We
heard from Zelenski last night in his nightly addressed. He's
saying that after the Geneva talks, there is no longer
the twenty eight point plan. There's the nineteen to one.
Many of the right elements have been taken into account
into that framework. But what that framework did do is
kick down the road a number of the most pic
contentious political issues for the President of the United States
(11:40):
and President Zelenski to discuss between the two of them
in person, ideally at some point or on the phone.
And I spoke to one of Zelenzi's aids yesterday saying
that that call could come over the next few days.
Where the action now turns is in Abu Dhabi, where
we understand that the Army Secretary Dan Driscoll, who is
now playing a much larger role in these negotiations. We
understand ad to reports that he met with some Ukrainians
(12:02):
in Abu Dhabi last night, that he will be meeting
with some of the Russian officials a little bit later
today to try to hammer out some of these differences.
But again, all of that being said, this is still
a very sort of actively debated document, living as we say,
and ever evolving. Though all of that being said, I
think that the Thursday Thanksgiving timeline is probably a little
bit ambitious in terms of actually getting all of this
(12:23):
over the line.
Speaker 2 (12:25):
Yes, absolutely, I known Dan Driscoll, interesting an ally of
JD Vance, also European leaders, though they have pushed back
against this twenty eight point plan, but they have got
this kind of maximalist rhetoric with quite gradualist measures, some
might argue. And so the question is also about the
(12:48):
frozen Russian assets. Is anything changing on the European side, Well,
it sort of depends who you ask.
Speaker 1 (12:54):
I mean, they're going to hold a sort of coalition
of the willing Call today, which is obviously greater than
just the Europeans. So that is going to be where
the European discussion goes. That's about fifty countries. This will
be assembled virtually, you know, it will be attended by Starmer,
m Cooin, all the sort of usual suspects in terms
of trying to make forward progress on other ways that
they can support Ukraine, ways that they could lobby the
United States. But you point out once again and I
(13:16):
feel like a broken record coming on every day and
talking about this, but the one point where the Europeans
can exert leverage can make a massive difference to these
negotiations to the Ukrainians is by figuring out what to
do with the one hundred and forty billion euros worth
of Russian assets that are sitting in Belgium that there
has been no consensus on among the EU twenty seven
on how to get that sort of loan backed by
(13:36):
those assets and get it to Ukraine. As we've said many,
many times, this would change the dynamic fundamentally for the
Ukrainians if they had one hundred and forty billion euros
in the bank. I spoke to the Lithuanian Foreign minister
yesterday who said, listen, we need to be realistic here
in Europe. In order to get a seat at this
table in twenty twenty five with Donald Trump, you need
to earn your seat at the table. And the only
way that we can earn our seat at the table
(13:57):
is to move on those Russian assets. And that's what
we should be doing today.
Speaker 2 (14:01):
Okay, that's one view, then on what the Europeans should
be doing. What about the state of the conflict. Though
Russia's economy is barely growing given the war spending, Ukraine
is struggling with manpower on the front line. The conflict
is there and it's face.
Speaker 1 (14:18):
Absolutely and we see you overnight over the last week.
I mean, there's been a number of reports, especially the
mid middle of last week, where a number of missiles
hitting apartment buildings, killing many civilians. Overnight, Kiv getting absolutely pummeled.
The Ukrainians in returning fire into Russia that downed most
a great majority of those drones. But this is a
war that is of course raging very very violently, continues
(14:40):
to be fought on the front lines for very sort
of marginal gains on the Russian side, But they have
been advancing throughout all this discussion. I think that the
sort of big question here will be if the United States'
position changes on what we have, which is this bill,
this bipartisan bill that sits right now in the US
Senate about those bone crushing sanctions that post put forward
by Linz. This is something that would pass in the
(15:02):
United States. It has support from the Democrats and the Republicans.
And a reminder, that is for sanctions on anybody buying
Russian crude oil or gas from the United States five
hundred percent tariffs, and we should say, Caroline. Something that
we sort of have missed with all of this sort
of deluge of the news over the twenty eight point
plan that on Friday last Friday is when those Luke
Oil and Roznev sanctions went into effect for the first time.
(15:23):
Those are absolutely massive in terms of the damage they
will do to the Russian economy of course, it is
a long sort of term damage that it will do.
It will not be tomorrow. But when I spoke to
the US Envoy to NATO, Matthew Whitaker, he says that
this is the thing that the Russians complained the most about.
This is where it hurts them the most.
Speaker 2 (15:38):
Interesting. Yeah, and also that President Trump and G when
they spoke on that phone call that we mentioned about
Japan and China, they also did discuss President g and
President Trump the Ukraine situation too, So yeah, there's also
that layer to add Ollie. Thank you so much for
being with it. Spimberg's chief Europe correspondent Oliver Krook with
(15:59):
the latest when it comes to the path ahead for Ukraine.
Stay with us. More from Bloomberg Daybakeuobe coming up after
this now six pounds meal deals and thirteen quid for
a salad. Peta Marge's chain of five hundred UK stores
are trying different approaches under CEO Pano Christo. Joining us
(16:19):
now to discuss is Bloomberg's consumer reporter Maddie Parker for
something a bit different. Maddie, good morning. Why is Peta
Marje You know, the high street chain actually in need
of a revival do we think.
Speaker 8 (16:31):
If you look at pret's business model, obviously it realizes
a lot on consumers coming to work then the means
to prep for their breakfast. Maybe they're popping out for
some lunch and treating themselves to kind of a price
once a little bit higher than what supermarkets offer. And
clearly in the post pandemic world, obviously a fewer people
actually coming into work. Footfall in the high street has
falln a little bit for prep So that's one of
(16:53):
the factors that it's facing. Obviously it's spacing other things
like higher taxes. We've got some of the highest energy
costs in Europe and obviously the big question of business
rates for tomorrow's budget. So kind of facing kind of
a bit of a marriage of factors that they have
to navigate, and their CEO is kind of trying to
search for a right recipe for the chain in this
kind of post pandemic world. And yeah, as you mentioned,
(17:13):
some of those offerings of meal deals and salads might
be the way to go.
Speaker 2 (17:17):
Yeah, meal deals are more common in the supermarkets in
the UK, aren't they. So what are the key elements
then to this attempted revival plan.
Speaker 8 (17:26):
So, yeah, as you mentioned, the meal deal is a
kind of a supermarket staple here in the UK, and
their CEO panel Christian says that the British consumer loves
a meal deal, which may well be the case. I
certainly do. The kind of price point that they're trialing
out in their store for this meal deal, which will
include a sandwich, drink and a snack, is kind of
between six and seven pounds. That is pricier than what
(17:46):
most supermarkets offer, which kind of usually starts at about under
four pounds. So that's going to be one of the
things that they're hoping will kind of attract customers and
laer them in. The other thing that you mentioned is
these new salerds. They call them super plates, which is
quite a fun name. But they're starting and they're kind
of costing and consumers as much as twelve pounds and
ninety five, which some people and I spoke to customers
are saying that that seems a little bit high. But yeah,
(18:08):
as I say, they're trying to kind of lure kind
of different kinds of customers in and yeah, offer a
kind of broad range of products.
Speaker 2 (18:14):
Oh, the meal deal, I mean, is that typically something
only the UK does. I don't know, it's usually like yes,
as you say, sandwich drink plus snag. What about the
budget though, pet Marje and are the high street chains?
I mean, we've been hearing a lot from businesses about
how they're quite worried, is prep worried.
Speaker 8 (18:33):
Pret is sort of very much that they're you know,
trying to persuade the Chancellor for tomorrow to not kind
of dent very fragile consumer confidence at the moment. It's
already said that after the lost budget that they were
having to restructure after obviously national insurance contributions are raised,
that was higher minimum wage and that really hit the
sector with kind of billions of the extra anual costs.
So they are very much along with their kind of
(18:54):
high street partners and other coffee chains, trying to say
to the Chancellor listen, this is not the time to
try and you know, it's not the chance to try
and kind of hit back consumer confiden where it's already
and a bit of a low and actually further tax
rises in particularly that crucial business grease question could kind
of add to their pain further.
Speaker 5 (19:11):
This is Bloomberg Daybreak Europe. Your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:17):
Look for us on your podcast feed every morning, on Apples, Spotify,
and anywhere else you get your podcasts.
Speaker 5 (19:23):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (19:29):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hipka and.
Speaker 5 (19:38):
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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