October 1, 2025 • 28 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Congress blew past a midnight funding deadline, triggering the US government’s first shutdown in nearly seven years — and the third under President Donald Trump.
(2) US equity-index futures fell as the deadline to avert a government shutdown lapsed, disrupting one of the country’s largest employers and threatening to delay key economic data releases
(3) Pfizer has won a reprieve from the US President's threatened tariffs on the pharmaceutical industry. The drugmaker agreed to cut some prices by up to 85% and sell directly to the public in the US.
(4) Keir Starmer was battling for his future a week ago. After the retreat of his main Labour rival and his decision to take the gloves off against populist rival Nigel Farage, the UK prime minister’s shored up his standing.
(5) Bloomberg's Women, Money & Power convenes the most influential voices from across the global finance industry for the second year to debate and discuss the critical issues facing the future of investing, real estate, consumer banking and private markets, as well as philanthropists, owners and CEOs.
Podcast Conversation: Fancy, Fattier $60-a-Pound Butter Is the Latest Must-Have Luxury
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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 Blueberg Day BAQ podcast. Good morning, It's Wednesday,
the first of October. I'm Caroline Hipka in London.
Speaker 3 (00:15):
And I'm Stephen Carolin Brussels. Coming up today out of time,
the United States government shuts down for the first time
since twenty eighteen.
Speaker 2 (00:23):
President Trump threatens to permanently far a lot of federal workers.
As markets assess the impact of the US funding.
Speaker 3 (00:30):
Lapse, plus shaping the future of finance and beyond, we
delve into the topics at the heart of Bloomberg's Women,
Money and Power event in London.
Speaker 2 (00:40):
Let's start with a roundup of our top stories.
Speaker 3 (00:42):
The United States government has entered its first shut down
in nearly seven years, as Democrats and Republicans remain in
a standoff over spending plans. At issue is whether to
attach healthcare and other policy changes demanded by Democrats to
a stop gap spending bill to fund the government. The
deadlock now threat to paralyze many US government operations while
(01:02):
suspending key services for Americans and paychecks for federal workers.
With more, here's Boomberg's Miles Meller.
Speaker 4 (01:09):
National services are going to be disrupted everything from passports
and visas on hold, to federal oversights of the market
and workplace complaints as well. We also won't get our
economic data in a timely fashion. The Labor Department Shops
report scheduled for Friday won't be released. Inflation and GDP
updates are also frozen, along with many Treasury tax functions.
(01:32):
That means that the Federal Reserve and investors are going
to be basically flying blind without economic data.
Speaker 3 (01:39):
And we'll see how long this goes for mis Miller
was speaking. Has Boomberg Economics calculated that if the shutdown
lasts for three weeks, the unemployment rate could spike to
four point seven percent from four point three percent, as
furloughed workers are counted as temporarily unemployed. Much of the
economic impacts from the government's shutdown has historically been recouped
(01:59):
after it, but not all. The Congressional Budget Office estimated
that the US economy failed to recover three billion dollars
of the eleven billion lost in output during the last shutdown.
Speaker 5 (02:11):
Well.
Speaker 2 (02:11):
This shutdown came into effect hours after President Trump said
his administration could use the shutdown to conduct mass layoffs
of federal workers. The Congressional Budget Office estimates about seven
hundred and fifty thousand federal employees will be furloughed each
day that the US government is shut down. Speaking to
reporters next Air Force One, Trump suggested mass layoffs as
(02:35):
he linked the standoff over healthcare funding to immigration.
Speaker 6 (02:40):
Well, we made you alive, and that's only because of
the Democrats.
Speaker 1 (02:43):
And as you know, they wanted to be.
Speaker 4 (02:45):
Able to take care of people that have come into
our country illegally, and no system get hand on that.
Speaker 1 (02:50):
So we're totally opposed on that.
Speaker 5 (02:52):
But we can't take care. We just can't do it.
Speaker 7 (02:54):
I'd love to do everybody, I'd love to do the
whole world, but.
Speaker 6 (02:57):
Our country can't hand on people that come into our country.
Speaker 2 (03:00):
That was President Trump speaking two reporters. As Democrats and
Republicans have shown no signs of resolving their deadlock.
Speaker 3 (03:08):
Traders are becoming increasingly concerned over the effect on upcoming
data releases. Speaking moments after the shutdown took effect, Morgan
Stanley's senior Global economist re Chief Sibal, says the impact
on the flow of economic information is a real concern.
Speaker 8 (03:24):
The delay in the release of data is going to
be critically important here. There are historical presidents that have
seen data sometimes released during government shutdowns, sometimes not released.
In this case, the BLS has gone ahead and stated
that they will not be released in the data and
as is important for investors in understanding what's happening in
the economy. Without that information, there's going to be a
lot of uncertainty. And we're in an environment where we've
(03:45):
had consistent growth, upside surprise, and the market is looking
for more of that. And so I think, you know,
not having non front payrolls, not having retail sales could
be I guess a bit of a wabble for markets.
Speaker 3 (03:57):
For Chief Saba's comments come after recent economic data has
shown the labor market is slowing down in the United States,
while inflation remains relatively under control, though still above the
FADS two percent target.
Speaker 2 (04:09):
Now, in terms of the market reaction from the shutdown
impact S and P five hundred EVENI futures currently down
by four tenths of one percent. Nows that futures are
also declining half of one percent. European stock futures, meanwhile,
are positive. In the green gold has hit another record high,
extending the four day rally we've seen so bullion edging
(04:31):
high two tens of one percent to trade at three
eight hundred and sixty eight dollars. The dollar itself is
currently off by a tenth of one percent. Asian shares
are also low, with China and Hong Kong close for holiday.
That is the key reaction in markets and the impact
from the government shutdown in the US.
Speaker 3 (04:52):
Another news, Pfizer has won a reprieve from the US
President's threatened tariffs on the pharmaceutical industry. The drugmaker agreed
to cut some price by up to eighty five percent
and sell directly to the public in the US. The
pledge addresses Donald Trump's complained that Americans are paying more
for medicines his vizor CEO Albert Bula.
Speaker 9 (05:11):
For years, other rich nations refused to pay the first
serve for the medical innovation, and as a result, Americans
had to assume this proportional costs on their soldiers. This
situation we all knew is not sustainable.
Speaker 3 (05:29):
CEO of Pfizer, Albert will speaking there alongside Donald Trump
and the White House. The deal secures the company a
three year grace period from the anticipated pharmer levies. With
other major drugmakers expected to follow the.
Speaker 1 (05:41):
Move now here.
Speaker 2 (05:43):
In the UK, Prime Minister Ki Stormer has attempted to
quiet speculation about his leadership and take the fight to
his opposition. During a keynote address at the Labor Party
conference in Liverpool, he took aim at the pole Topping
Reform UK Party for its quote pics of grievance, and
referred to its leader Nigel Farage as a snake oil
(06:04):
salesman to an audience waving flags. He concluded these speech
with a rallying cry to progressive patriotism.
Speaker 10 (06:13):
I believe Britain can come together, that we can pursue
a shared destination, that we can unite around a common good.
That is my ambition, the purpose of this government and
decline reform our public services, grow our economy from the
grassroots and with resolve, with respect, with a flag at
our hands, we've got renew this country until we consa
(06:34):
with total conviction. But Britain is built for all.
Speaker 2 (06:40):
MPs and delegates told Bloomberg Starmer was in a more
comfortable position after his speech than he was at the
beginning of the conference, buying his government some time to
consolidate its position bars in the immediate vicinity of the
conference told Bloomberg that they had sold out of Champagne. However,
a UK indicator of business confidence has fallen to a
(07:02):
record low. The Institute of Directors Economic Confidence Index gave
its lowest reading since twenty sixteen, as business leaders ready
themselves for potential tax rises in the Chancellor's aught to budget.
Speaker 3 (07:16):
Research from McKinsey says women will control roughly thirty eight
percent of investable assets by the year twenty thirty, close
to double last year's total. The shift will be discussed
during Bloomberg's second annual Women, Money and Power Conference in
London today, featuring some of the most influential voices from
across the global finance industry. The agenda covers issues including
(07:36):
the future of investing, real estate and private markets. Ahead
of attending the event, Diane Trader, founder and CEO of
Impact Investing Group The New Climate, said opportunities in her
sector are growing.
Speaker 11 (07:49):
People in Europe, in particularly in the UK, family offices
and the like are wondering how to participate in this.
There's going to be tremendous, tremendous investment opportunities and so
they just want to be more connected and I think
with our climate salans, the way that we bring together
these conversations and you know, some examples in such an
areas of investment, I think that that's really helping to
(08:09):
move this forward.
Speaker 3 (08:11):
Let's do on Trader, founder and CEO of the New Climate.
Speakers at today's conference include Jenny Johnson, the President's CEO,
It's Franklin Templeton, Ariander Rothschild, CEO of Edmund Rothschild, and
Julia Hoggett, CEO of the London Stock Exchange.
Speaker 2 (08:26):
So in a moment, so we're going to bring you
more on the US government shutdown and how markets are
reacting to it. But before we get to that not
big conversation, something else that we've been focusing on this morning.
Some luxury butter with the luxury price tax. Stephon Yeah, Klie.
Speaker 3 (08:44):
Christina Peters has been writing about a craze among Americans
for animal farm creamery butter Maid in Vermont, extra creamy
cultured butter. The price sixty dollars per pound or forty
five pounds or fifty euro, around fourteen times the average
price of.
Speaker 5 (08:58):
Butter in the United States.
Speaker 3 (09:00):
But I found fascinating about this is essentially what they're
buying is European butter or butter, but you and I
can buy in the supermarket every day of the week.
It has a higher rate. This part I didn't actually know.
So European butter required must have at least eighty two
percent butter fat, whereas American butter must have a minimum
of eighty percent. So already the taste is different. But
essentially this is you know, I love buying fancy butter, frankly,
(09:23):
but the idea of paying sixty.
Speaker 5 (09:24):
Dollars for it is outrageous. Frankly.
Speaker 2 (09:28):
Yeah, I look, I think this goes into the camp
of the little luxuries for maybe you know, the one percent.
I don't know. I did have a look actually at
some fancy butter. There is such a thing also in
London eight pounds forty five at La Fromagerie, which is this,
you know, the high end chain of cheese shops that
focuses on all things made from milk. Yeah, to me,
(09:48):
I didn't realize that there was another kind of butter.
But look, I thought it was an interesting story, isn't it.
But luxury food is all about even as food price
inflation in the UK is surging out.
Speaker 3 (10:01):
Yeah, but it was not quite to those levels though,
which I think is probably a reef for everyone concerned.
I did start to look up some of the statistics
around this. France is the number one consumer of butter globally,
and in Europe the biggest producer is actually Germany, followed
by France and Ireland. So there you go, some butter
facts to take with you through your day. Let's bring
you more now. In the federal government shut down in
the United States, funding expired just after midnight Washington time,
(10:23):
or five am in London, after Democrats blocked a Republican
stop gap funding package which didn't meet their demands a
little earlier. We spoke to our senior US government out
of Derek Wolbank, and started by asking him if there
was any progress towards a deal in the hours running
up to the deadline.
Speaker 5 (10:39):
Almost none, almost none.
Speaker 12 (10:42):
The Republicans and Democrats are at a pretty big impasse.
Democrats want additional money for healthcare. Republicans want to have
just a straight up clean spending bill extension. There's a
big absence of trust between the two right now, particularly
over Donald Trump's, you know, moves to aggressively cut the
(11:03):
federal expense sheet without real consultation with Democrats, and so
this has been a sort of series of red lines
that have been crossed. And I would say, you know,
thinking specifically to that question, we have. You know, sometimes
you look at the last couple of hours and you
(11:23):
see people lobbying ideas back and forth, and it looks
like things might be going forward.
Speaker 5 (11:29):
Really not the case here.
Speaker 12 (11:30):
The last couple of hours was marked by the president
sharing social media memes absolutely trashing his democratic counterparts. So
that's really kind of where we sit right now. A
lot of acrimony in Washington right now. Government shutdown has started.
It's unclear how long this is going to go.
Speaker 2 (11:51):
So what happens now to US government operations?
Speaker 12 (11:55):
Well, we begin the process of shut down, and this
is a this is a little bit of a tricky thing,
right because the US divides between essential things that need
to get done and stuff that's deemed non essential. Basically,
think of it as about a sixty forty split. Essential
things would be like veterans' hospitals. You know, you're not
(12:17):
going to kick sick people out onto the street, the military,
things of that nature, but a lot of government workers
are going to get furloughed, which means that they are
going to be sent home, told not to work, told
not to do anything, and to come back only when funding.
Speaker 5 (12:36):
Kicks back in.
Speaker 12 (12:37):
Those who are still on the job won't get a
paycheck until all of this is done, and that starts
getting really significant really quickly, because once you start missing paychecks,
you're starting to talk about you know, members of the
Armed services and making their mortgage payments, and it gets
really serious, really quickly.
Speaker 3 (12:57):
And that's the political jeopardy here as well. What does
it mean politically for Donald Trump but also for Democrats.
Speaker 12 (13:04):
Well, I think that's a real key question. I think
nobody really knows the answer. Some polls that I saw
ahead of the shutdown were suggesting that there was going
to be a bit of a pox on both their houses,
with maybe a slight lean more towards blaming Republicans. But
let's see what that looks like a week into it,
two weeks into it, if we go, you know that.
Speaker 5 (13:24):
Long or longer.
Speaker 12 (13:25):
The other thing that I should say here is that
is that you know, shutdowns are not like you know,
there's always this tendency to sort of say, okay, who
wins who loses in a political context, but it's not
really a boxing match. You can't kind of score it
like that. One of the things that I would note
is that there have been prior shutdowns that Republicans instigated
(13:47):
where they just flat out lost the shutdown, according to
everyone involved, had to crawl back pass a funding bill,
getting nothing that they wanted, and then eventually went to
win on when the next elections at hand, you know,
a year later.
Speaker 5 (14:02):
So that has happened before.
Speaker 12 (14:04):
So it's not like there's necessarily a one to one
relationship here. Some of this is about, you know, trying
to trying to make your base more enthusiastic and gin
that up, you know. But really a lot of this
and where the big worry is for both sides is
that independent voters generally just want the government to get
(14:25):
on with the business of doing things in a sensible fashion, right,
and the shutdown is basically the antithesis of all of that.
Speaker 2 (14:37):
Okay, So the thing is what is the path from here?
I mean, Republicans control both houses of Congress, they control
the White House, but they do need some Democrats. What
is the path forwards?
Speaker 12 (14:54):
Yeah, that's right, And then the math is really straightforward.
Republicans need votes that adds to eight because Rand Paul
or Kentucky Republican tends to vote know on these things.
The last vote they got they got three Democratic votes,
which is actually an improvement because the time before that
they only got one. So there's been a little bit
(15:14):
of movement there, but you know, you're still sitting there
talking about I need about five more Democratic votes. If
I'm Republicans, that does get to be quite a challenging task.
I see this going kind of one of two ways
right now, just looking at the options on the table.
Speaker 5 (15:32):
The first way is Republicans.
Speaker 12 (15:34):
And Democrats do actually have an exit ramp if they
wanted to start talking about healthcare subsidy money that Democrats want.
There's a possibility that you could get some deal where
Democrats agree to a short extension while serious talks are ongoing.
That's one path. The other path, quite frankly, is someone
(15:56):
caves and just gives up. And of those things are
ways that we've seen shutdowns resolved previously.
Speaker 5 (16:03):
Those are really the two big things right now.
Speaker 12 (16:06):
And as I say, walking into this shutdown right now,
that road has been papered by you know, just straight
acrimony between the two sides and it's a lot of
tension right now, so you know, let's see where we go.
Speaker 5 (16:24):
But those are the two most.
Speaker 12 (16:26):
Obvious ways out if there is going to be a
way out that either side wants to actually take.
Speaker 5 (16:31):
That was our saying.
Speaker 3 (16:32):
You're at US government ader Derek Welbank speaking to us
a little earlier.
Speaker 2 (16:36):
Well, let's think also about what this means for markets
now and bringing our Markets Live Executive Editor Mark Hudmore,
Good morning, Mark. In advance of the deadline for the
US government shut down, we did see gold rallying to
another record high, the dollars weakening. What does the shutdown
mean for markets.
Speaker 1 (16:55):
In the short term? Very little.
Speaker 6 (16:57):
It's a creeping story rather than a binary story for now.
If it extends for many weeks, it can become a
sudden binary story and really matter. So it's a creeping story.
Does still matter, but it's how does that matter? It
means largely a continuation of the trends we've seen. You
talked about a goals at a record there, but you
might use the word another record and goals we're making
(17:19):
records all year.
Speaker 1 (17:20):
Such, just continuation that trend.
Speaker 6 (17:21):
It's a continuation of the dollar deppreciation, trend we've seen
all year. Stocks should probably continue to be okay. The
one that's interesting, I think is that it's completely consensus,
and that's been the precedent that in shutdowns people by treasuries.
Speaker 1 (17:37):
I'm a little bit more.
Speaker 6 (17:39):
Worried about the conclusion that to Morad, I think that'll
be the knee jerk reactions as a run to a haven.
But treasury's haven status has been eroded over the past year,
so that might be the trade that disappoints.
Speaker 3 (17:49):
Where's the cliff edge, then, mark where I just think
gets serious for markets.
Speaker 6 (17:54):
I don't think people are are sure on that, but
you know, you're talking weeks away.
Speaker 1 (18:00):
I mean, I thought it was very interesting.
Speaker 6 (18:01):
Bloomberger Economics made the point that it'll be pretty much
irrelevant for fourth quarter GDP in the US unless it
extends beyond mid November. So they're basically saying economically, it
doesn't matter unless it's like we're talking six weeks or more.
I think markets will start to panic before then, but
you know, probably we could go a month before this
becomes a binary cliff edge. Now, the point is you
(18:23):
don't want it to get there, because it does get
to the cliff edge. These are markets that are not
priced to be disrupted. These are markets where people are
very extended in the consensus trades. So if we go
off that cliff edge, it could be horrible, but I
you know, we're a long way from that.
Speaker 2 (18:36):
Yeah, okay, Well, taught to us a little bit more
about the bond markets then, because reporting on bond traders
putting money into options bets that ten year treasuries are
on the cusp of a significant rally. So how does
that thread into your view on treasuries?
Speaker 6 (18:52):
Now, yeah, I mean that's kind of a consensus the
moment that this will be support treasuries, and it's supported
by the fact that, you know, the shut inn we'll
have some short term dynamics in terms of that it'll.
Speaker 1 (19:03):
Delay data or cloud.
Speaker 6 (19:05):
You know, or undermine the data that we do get,
and therefore there's no chance to kind of disrupt the
narrative that the administration is pushing, which is that inflation
is under control and the US needs to cut rates rapidly,
and that'll be facilitated at some point because if you know,
if you get a lot of fured workers who then
go on temporary job leaver status, you could get a
(19:25):
temporary spike at unemployment rate, which would then help Trump
put further pressure on the FED, And of course FED
officials would look through that theoretically, but if they're getting
a lot of pressure kind of going, oh my god,
we need to you know, cut rates dramatically, and then
suddenly those those insust rates would would sorry that theo's
unemployment rates would fall back down after the shut and ended.
So this kind of all plays into the administration kind
(19:46):
of hands, you know, And that's why I understand why
people are kind of going, hey, buy treasuries. The administration
wants to yields lower. It's the kind of consensus play here.
I just feel it's very consensus, and everyone knows that
the real problem in the US has got is that
it's got an inflation problem that it just can't get
away from. We talk about we're at the end of
the kind of deflationary phase, dissinflationary phase, and we're still
(20:08):
sticky above three percent. Really, so I think that I
don't think you'ld go massively lower.
Speaker 1 (20:12):
But even if there's a knee jerk reaction.
Speaker 3 (20:14):
Just on the question of the data release is being delayed,
of course, Friday's jobs report and focus for that. I mean,
how serious is that or how much does that affect
things in the medium term if we don't get that
data for a while.
Speaker 1 (20:26):
Medium term, like not at all.
Speaker 6 (20:27):
I mean, look, no one can remember, you know when
we got delay data before you go look up in
the precedent and go, yeah, that didn't come until two
weeks later. Oh yeah, we didn't get the CPI report
until thirtieth of October rather than sixteenth of October. And
like I was trading back during some of this the time,
you know, you move on from it. It doesn't decide the
medium term future from a short term point of view. Look,
first of all, the FED looks through all these delays
(20:49):
and stuff. It looks all through all these temporary problems
as long as they stay tempering. And that's why I
said there is a cliff edge, but it's not close
as long as temporarily look through it. Probably the other
thing is we over react to other alternative forms of data,
of which Bloomberg provides a lot and private forms of data.
People aren't used to look at these data's resources to there.
They're algos, their programs, their models, they're spreadsheets aren't worked
(21:13):
to trigger off them, which causes a little bit of
like disruption and kind of unnecessary short term volatility, but
again non medium term. So everything is important that this
causes is this is ultimately going to be a short
term story that consumes us for a couple of weeks
unless it passes some binary tipping point. And as I
said that binar timpoint point, we don't know when it is,
but it's probably a few weeks away.
Speaker 3 (21:31):
Mark, great to have you with us. Thanks for your analysis.
Our Markets Live Executive editor Mark cod Moore, stay with us.
More from Bloomberg daybaqube coming up after this. Now let's
bring you another of our top interviews this morning. So
this year has seen huge uncertainty in terms of trade tensions,
(21:51):
fiscal policy, geopolitical risks. What does that mean for investors,
for CEOs and philanthropists looking forwards? Well, this is at
the high of Bloomberg's Women, Money and Power Conference today.
When it comes to the energy transition, climate change continues
to accelerate even as the Trump administration is pushed to
dismantle renewable energy projects and as we've seen ourtuitional intelligence
(22:16):
create power demands globally. Now the new climate is a
group which has tasked itself with accelerating institutional investment into
climate change technology. So ahead of the summit, I've been
speaking to the group's founder and CEO, Diane Schrader, and
been asking her what is on offer to investors who
are interested in the climate space.
Speaker 12 (22:37):
Now.
Speaker 11 (22:38):
I think that there are opportunities everywhere. I think one
of the things that we look at is, particularly the
energy side, is infrastructure. There's transmission, there's storage, There's all
sorts of opportunities. Ann and you've mentioned when that Europe
is certainly a leader in this area as well. If
you go back to nuclear, one of the things that
(23:00):
that the UK and the United States have done is
they've agreed to share lessons. And I think that not
only does this applied to nuclear, but I think especially
in private markets, this applies to all of the areas
of energy. You know, where we can go into new
frontiers and then share the lessons of those early pioneering
projects such that we can standardize and expand on those.
(23:24):
That's treminously important. And again we've seen this already in solar,
We've seen this in wind, We're seeing this in storage.
We'll see this as again we go further into nuclear,
enhanced geothermal and such.
Speaker 2 (23:37):
You've just finished hosting your National Security Salon event, which
has been looking at the intersection between climate, national security,
and these institutional investors and investments. You had I think
something like thirteen trillion dollars in terms of assets onto
management being managed by the attendees. Did you get the
(23:59):
sort of buy in the you'd hoped for from that event?
Speaker 7 (24:03):
Oh, it was absolutely thrilling.
Speaker 11 (24:05):
We've been hosting the Climate Salon for eight years and
I had been saying that peak salon was in London
going into the Glasgow cop going back in twenty twenty one,
we had about eleven trillion nascets center management at that salon,
and if you look back at the trends, there is
tremendous interest in climate, not only from governments, from corporations,
(24:26):
from banks, and certainly from institutional investors. And so this year,
as you'd said, there are some kind of policy headwinds
in the climate area, and so it was surprising to
us to see so much interest in this particular intersection. Again,
it goes back to the fact that a lot of
this is focused on infrastructure, and these are very big
(24:48):
ticket items and so it takes institutional investment to drive
it forward.
Speaker 2 (24:53):
I suppose there's a lot of attention also on the
China model effectively, which is not either all but and
when it comes to renewables and the carbon economy, do
you think that others are taking lessons away from that
strategy that is evident in China.
Speaker 11 (25:12):
There's a tremendous, tremendous discussion about China at Climate Week
that I just attended last week, and I think that
a lot of folks are saying that I here in
the United States were really good at inventing from zero
to one, and China is great from one to two.
And if you look at where they've gone in their
investments and innovation in climate, they're just doing an exceptional
(25:36):
job of scaling and replicating and standardizing these opportunities. So
I think there are a lot of takeaways and such
from China that we could replicate in other places. For sure,
I would like to see us share, you know, more
of these technologies and again the information and such from them.
Speaker 7 (25:54):
But it's inspiring. It's inspiring to see.
Speaker 2 (25:57):
The biggest obstacle that you think is standing in the
way of harnessing institutional investment for climate purposes.
Speaker 7 (26:04):
Right now, it's always product.
Speaker 11 (26:06):
Institutional investors see a lot of opportunities, but they have
very strict requirements in what they invest in, and so
what we need is to provide them more opportunities that
fit their strict criteria. They have long term obligations to meet.
At the same time, they're also looking at some of
their shorter term needs as well, and so it's always
just advancing more product and that means getting some of
(26:29):
these small to mid range opportunities up to the scale
that institutional investors need done.
Speaker 2 (26:35):
In the summer, you were in the UK with an
event and there was a lot of focus on national
security and energies, especially for the UK.
Speaker 11 (26:44):
We hosted a series of dinners with institutional investors during
that time and it was interesting. One of them focused
on this area of climate national security and the big question.
Particularly there were family offices at that dinner wondering who's
now security. So if you go back to June and
there are all these conversations, of course around how needle
(27:07):
countries are going to participate more in investing in national security.
A lot of that innovation does come from the United States. Certainly,
not all of it, but a lot of it does.
Speaker 7 (27:16):
And so I think a.
Speaker 11 (27:17):
Lot of people in Europe, in particularly in the UK,
family offices and the like, are wondering how to participate
in this. There's going to be tremendous, tremendous investment opportunities,
and so they just want to be more connected. And
I think with our climate salons, the way that we
bring together these conversations and some examples in such areas
of investment, I think that that's really helping to move
(27:39):
this forward.
Speaker 3 (27:42):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (27:48):
Look for us on your podcast feed every morning, on Apples, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (27:55):
You can also listen live each morning on London Dab Radio,
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Speaker 2 (28:00):
Our flagship New York station. Is also available on your
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Speaker 3 (28:09):
I'm Stephen Carol. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe.
Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2 (00:10):
This is the Blueberg Day BAQ podcast. Good morning, It's Wednesday,
the first of October. I'm Caroline Hipka in London.
Speaker 3 (00:15):
And I'm Stephen Carolin Brussels. Coming up today out of time,
the United States government shuts down for the first time
since twenty eighteen.
Speaker 2 (00:23):
President Trump threatens to permanently far a lot of federal workers.
As markets assess the impact of the US funding.
Speaker 3 (00:30):
Lapse, plus shaping the future of finance and beyond, we
delve into the topics at the heart of Bloomberg's Women,
Money and Power event in London.
Speaker 2 (00:40):
Let's start with a roundup of our top stories.
Speaker 3 (00:42):
The United States government has entered its first shut down
in nearly seven years, as Democrats and Republicans remain in
a standoff over spending plans. At issue is whether to
attach healthcare and other policy changes demanded by Democrats to
a stop gap spending bill to fund the government. The
deadlock now threat to paralyze many US government operations while
(01:02):
suspending key services for Americans and paychecks for federal workers.
With more, here's Boomberg's Miles Meller.
Speaker 4 (01:09):
National services are going to be disrupted everything from passports
and visas on hold, to federal oversights of the market
and workplace complaints as well. We also won't get our
economic data in a timely fashion. The Labor Department Shops
report scheduled for Friday won't be released. Inflation and GDP
updates are also frozen, along with many Treasury tax functions.
(01:32):
That means that the Federal Reserve and investors are going
to be basically flying blind without economic data.
Speaker 3 (01:39):
And we'll see how long this goes for mis Miller
was speaking. Has Boomberg Economics calculated that if the shutdown
lasts for three weeks, the unemployment rate could spike to
four point seven percent from four point three percent, as
furloughed workers are counted as temporarily unemployed. Much of the
economic impacts from the government's shutdown has historically been recouped
(01:59):
after it, but not all. The Congressional Budget Office estimated
that the US economy failed to recover three billion dollars
of the eleven billion lost in output during the last shutdown.
Speaker 5 (02:11):
Well.
Speaker 2 (02:11):
This shutdown came into effect hours after President Trump said
his administration could use the shutdown to conduct mass layoffs
of federal workers. The Congressional Budget Office estimates about seven
hundred and fifty thousand federal employees will be furloughed each
day that the US government is shut down. Speaking to
reporters next Air Force One, Trump suggested mass layoffs as
(02:35):
he linked the standoff over healthcare funding to immigration.
Speaker 6 (02:40):
Well, we made you alive, and that's only because of
the Democrats.
Speaker 1 (02:43):
And as you know, they wanted to be.
Speaker 4 (02:45):
Able to take care of people that have come into
our country illegally, and no system get hand on that.
Speaker 1 (02:50):
So we're totally opposed on that.
Speaker 5 (02:52):
But we can't take care. We just can't do it.
Speaker 7 (02:54):
I'd love to do everybody, I'd love to do the
whole world, but.
Speaker 6 (02:57):
Our country can't hand on people that come into our country.
Speaker 2 (03:00):
That was President Trump speaking two reporters. As Democrats and
Republicans have shown no signs of resolving their deadlock.
Speaker 3 (03:08):
Traders are becoming increasingly concerned over the effect on upcoming
data releases. Speaking moments after the shutdown took effect, Morgan
Stanley's senior Global economist re Chief Sibal, says the impact
on the flow of economic information is a real concern.
Speaker 8 (03:24):
The delay in the release of data is going to
be critically important here. There are historical presidents that have
seen data sometimes released during government shutdowns, sometimes not released.
In this case, the BLS has gone ahead and stated
that they will not be released in the data and
as is important for investors in understanding what's happening in
the economy. Without that information, there's going to be a
lot of uncertainty. And we're in an environment where we've
(03:45):
had consistent growth, upside surprise, and the market is looking
for more of that. And so I think, you know,
not having non front payrolls, not having retail sales could
be I guess a bit of a wabble for markets.
Speaker 3 (03:57):
For Chief Saba's comments come after recent economic data has
shown the labor market is slowing down in the United States,
while inflation remains relatively under control, though still above the
FADS two percent target.
Speaker 2 (04:09):
Now, in terms of the market reaction from the shutdown
impact S and P five hundred EVENI futures currently down
by four tenths of one percent. Nows that futures are
also declining half of one percent. European stock futures, meanwhile,
are positive. In the green gold has hit another record high,
extending the four day rally we've seen so bullion edging
(04:31):
high two tens of one percent to trade at three
eight hundred and sixty eight dollars. The dollar itself is
currently off by a tenth of one percent. Asian shares
are also low, with China and Hong Kong close for holiday.
That is the key reaction in markets and the impact
from the government shutdown in the US.
Speaker 3 (04:52):
Another news, Pfizer has won a reprieve from the US
President's threatened tariffs on the pharmaceutical industry. The drugmaker agreed
to cut some price by up to eighty five percent
and sell directly to the public in the US. The
pledge addresses Donald Trump's complained that Americans are paying more
for medicines his vizor CEO Albert Bula.
Speaker 9 (05:11):
For years, other rich nations refused to pay the first
serve for the medical innovation, and as a result, Americans
had to assume this proportional costs on their soldiers. This
situation we all knew is not sustainable.
Speaker 3 (05:29):
CEO of Pfizer, Albert will speaking there alongside Donald Trump
and the White House. The deal secures the company a
three year grace period from the anticipated pharmer levies. With
other major drugmakers expected to follow the.
Speaker 1 (05:41):
Move now here.
Speaker 2 (05:43):
In the UK, Prime Minister Ki Stormer has attempted to
quiet speculation about his leadership and take the fight to
his opposition. During a keynote address at the Labor Party
conference in Liverpool, he took aim at the pole Topping
Reform UK Party for its quote pics of grievance, and
referred to its leader Nigel Farage as a snake oil
(06:04):
salesman to an audience waving flags. He concluded these speech
with a rallying cry to progressive patriotism.
Speaker 10 (06:13):
I believe Britain can come together, that we can pursue
a shared destination, that we can unite around a common good.
That is my ambition, the purpose of this government and
decline reform our public services, grow our economy from the
grassroots and with resolve, with respect, with a flag at
our hands, we've got renew this country until we consa
(06:34):
with total conviction. But Britain is built for all.
Speaker 2 (06:40):
MPs and delegates told Bloomberg Starmer was in a more
comfortable position after his speech than he was at the
beginning of the conference, buying his government some time to
consolidate its position bars in the immediate vicinity of the
conference told Bloomberg that they had sold out of Champagne. However,
a UK indicator of business confidence has fallen to a
(07:02):
record low. The Institute of Directors Economic Confidence Index gave
its lowest reading since twenty sixteen, as business leaders ready
themselves for potential tax rises in the Chancellor's aught to budget.
Speaker 3 (07:16):
Research from McKinsey says women will control roughly thirty eight
percent of investable assets by the year twenty thirty, close
to double last year's total. The shift will be discussed
during Bloomberg's second annual Women, Money and Power Conference in
London today, featuring some of the most influential voices from
across the global finance industry. The agenda covers issues including
(07:36):
the future of investing, real estate and private markets. Ahead
of attending the event, Diane Trader, founder and CEO of
Impact Investing Group The New Climate, said opportunities in her
sector are growing.
Speaker 11 (07:49):
People in Europe, in particularly in the UK, family offices
and the like are wondering how to participate in this.
There's going to be tremendous, tremendous investment opportunities and so
they just want to be more connected and I think
with our climate salans, the way that we bring together
these conversations and you know, some examples in such an
areas of investment, I think that that's really helping to
(08:09):
move this forward.
Speaker 3 (08:11):
Let's do on Trader, founder and CEO of the New Climate.
Speakers at today's conference include Jenny Johnson, the President's CEO,
It's Franklin Templeton, Ariander Rothschild, CEO of Edmund Rothschild, and
Julia Hoggett, CEO of the London Stock Exchange.
Speaker 2 (08:26):
So in a moment, so we're going to bring you
more on the US government shutdown and how markets are
reacting to it. But before we get to that not
big conversation, something else that we've been focusing on this morning.
Some luxury butter with the luxury price tax. Stephon Yeah, Klie.
Speaker 3 (08:44):
Christina Peters has been writing about a craze among Americans
for animal farm creamery butter Maid in Vermont, extra creamy
cultured butter. The price sixty dollars per pound or forty
five pounds or fifty euro, around fourteen times the average
price of.
Speaker 5 (08:58):
Butter in the United States.
Speaker 3 (09:00):
But I found fascinating about this is essentially what they're
buying is European butter or butter, but you and I
can buy in the supermarket every day of the week.
It has a higher rate. This part I didn't actually know.
So European butter required must have at least eighty two
percent butter fat, whereas American butter must have a minimum
of eighty percent. So already the taste is different. But
essentially this is you know, I love buying fancy butter, frankly,
(09:23):
but the idea of paying sixty.
Speaker 5 (09:24):
Dollars for it is outrageous. Frankly.
Speaker 2 (09:28):
Yeah, I look, I think this goes into the camp
of the little luxuries for maybe you know, the one percent.
I don't know. I did have a look actually at
some fancy butter. There is such a thing also in
London eight pounds forty five at La Fromagerie, which is this,
you know, the high end chain of cheese shops that
focuses on all things made from milk. Yeah, to me,
(09:48):
I didn't realize that there was another kind of butter.
But look, I thought it was an interesting story, isn't it.
But luxury food is all about even as food price
inflation in the UK is surging out.
Speaker 3 (10:01):
Yeah, but it was not quite to those levels though,
which I think is probably a reef for everyone concerned.
I did start to look up some of the statistics
around this. France is the number one consumer of butter globally,
and in Europe the biggest producer is actually Germany, followed
by France and Ireland. So there you go, some butter
facts to take with you through your day. Let's bring
you more now. In the federal government shut down in
the United States, funding expired just after midnight Washington time,
(10:23):
or five am in London, after Democrats blocked a Republican
stop gap funding package which didn't meet their demands a
little earlier. We spoke to our senior US government out
of Derek Wolbank, and started by asking him if there
was any progress towards a deal in the hours running
up to the deadline.
Speaker 5 (10:39):
Almost none, almost none.
Speaker 12 (10:42):
The Republicans and Democrats are at a pretty big impasse.
Democrats want additional money for healthcare. Republicans want to have
just a straight up clean spending bill extension. There's a
big absence of trust between the two right now, particularly
over Donald Trump's, you know, moves to aggressively cut the
(11:03):
federal expense sheet without real consultation with Democrats, and so
this has been a sort of series of red lines
that have been crossed. And I would say, you know,
thinking specifically to that question, we have. You know, sometimes
you look at the last couple of hours and you
(11:23):
see people lobbying ideas back and forth, and it looks
like things might be going forward.
Speaker 5 (11:29):
Really not the case here.
Speaker 12 (11:30):
The last couple of hours was marked by the president
sharing social media memes absolutely trashing his democratic counterparts. So
that's really kind of where we sit right now. A
lot of acrimony in Washington right now. Government shutdown has started.
It's unclear how long this is going to go.
Speaker 2 (11:51):
So what happens now to US government operations?
Speaker 12 (11:55):
Well, we begin the process of shut down, and this
is a this is a little bit of a tricky thing,
right because the US divides between essential things that need
to get done and stuff that's deemed non essential. Basically,
think of it as about a sixty forty split. Essential
things would be like veterans' hospitals. You know, you're not
(12:17):
going to kick sick people out onto the street, the military,
things of that nature, but a lot of government workers
are going to get furloughed, which means that they are
going to be sent home, told not to work, told
not to do anything, and to come back only when funding.
Speaker 5 (12:36):
Kicks back in.
Speaker 12 (12:37):
Those who are still on the job won't get a
paycheck until all of this is done, and that starts
getting really significant really quickly, because once you start missing paychecks,
you're starting to talk about you know, members of the
Armed services and making their mortgage payments, and it gets
really serious, really quickly.
Speaker 3 (12:57):
And that's the political jeopardy here as well. What does
it mean politically for Donald Trump but also for Democrats.
Speaker 12 (13:04):
Well, I think that's a real key question. I think
nobody really knows the answer. Some polls that I saw
ahead of the shutdown were suggesting that there was going
to be a bit of a pox on both their houses,
with maybe a slight lean more towards blaming Republicans. But
let's see what that looks like a week into it,
two weeks into it, if we go, you know that.
Speaker 5 (13:24):
Long or longer.
Speaker 12 (13:25):
The other thing that I should say here is that
is that you know, shutdowns are not like you know,
there's always this tendency to sort of say, okay, who
wins who loses in a political context, but it's not
really a boxing match. You can't kind of score it
like that. One of the things that I would note
is that there have been prior shutdowns that Republicans instigated
(13:47):
where they just flat out lost the shutdown, according to
everyone involved, had to crawl back pass a funding bill,
getting nothing that they wanted, and then eventually went to
win on when the next elections at hand, you know,
a year later.
Speaker 5 (14:02):
So that has happened before.
Speaker 12 (14:04):
So it's not like there's necessarily a one to one
relationship here. Some of this is about, you know, trying
to trying to make your base more enthusiastic and gin
that up, you know. But really a lot of this
and where the big worry is for both sides is
that independent voters generally just want the government to get
(14:25):
on with the business of doing things in a sensible fashion, right,
and the shutdown is basically the antithesis of all of that.
Speaker 2 (14:37):
Okay, So the thing is what is the path from here?
I mean, Republicans control both houses of Congress, they control
the White House, but they do need some Democrats. What
is the path forwards?
Speaker 12 (14:54):
Yeah, that's right, And then the math is really straightforward.
Republicans need votes that adds to eight because Rand Paul
or Kentucky Republican tends to vote know on these things.
The last vote they got they got three Democratic votes,
which is actually an improvement because the time before that
they only got one. So there's been a little bit
(15:14):
of movement there, but you know, you're still sitting there
talking about I need about five more Democratic votes. If
I'm Republicans, that does get to be quite a challenging task.
I see this going kind of one of two ways
right now, just looking at the options on the table.
Speaker 5 (15:32):
The first way is Republicans.
Speaker 12 (15:34):
And Democrats do actually have an exit ramp if they
wanted to start talking about healthcare subsidy money that Democrats want.
There's a possibility that you could get some deal where
Democrats agree to a short extension while serious talks are ongoing.
That's one path. The other path, quite frankly, is someone
(15:56):
caves and just gives up. And of those things are
ways that we've seen shutdowns resolved previously.
Speaker 5 (16:03):
Those are really the two big things right now.
Speaker 12 (16:06):
And as I say, walking into this shutdown right now,
that road has been papered by you know, just straight
acrimony between the two sides and it's a lot of
tension right now, so you know, let's see where we go.
Speaker 5 (16:24):
But those are the two most.
Speaker 12 (16:26):
Obvious ways out if there is going to be a
way out that either side wants to actually take.
Speaker 5 (16:31):
That was our saying.
Speaker 3 (16:32):
You're at US government ader Derek Welbank speaking to us
a little earlier.
Speaker 2 (16:36):
Well, let's think also about what this means for markets
now and bringing our Markets Live Executive Editor Mark Hudmore,
Good morning, Mark. In advance of the deadline for the
US government shut down, we did see gold rallying to
another record high, the dollars weakening. What does the shutdown
mean for markets.
Speaker 1 (16:55):
In the short term? Very little.
Speaker 6 (16:57):
It's a creeping story rather than a binary story for now.
If it extends for many weeks, it can become a
sudden binary story and really matter. So it's a creeping story.
Does still matter, but it's how does that matter? It
means largely a continuation of the trends we've seen. You
talked about a goals at a record there, but you
might use the word another record and goals we're making
(17:19):
records all year.
Speaker 1 (17:20):
Such, just continuation that trend.
Speaker 6 (17:21):
It's a continuation of the dollar deppreciation, trend we've seen
all year. Stocks should probably continue to be okay. The
one that's interesting, I think is that it's completely consensus,
and that's been the precedent that in shutdowns people by treasuries.
Speaker 1 (17:37):
I'm a little bit more.
Speaker 6 (17:39):
Worried about the conclusion that to Morad, I think that'll
be the knee jerk reactions as a run to a haven.
But treasury's haven status has been eroded over the past year,
so that might be the trade that disappoints.
Speaker 3 (17:49):
Where's the cliff edge, then, mark where I just think
gets serious for markets.
Speaker 6 (17:54):
I don't think people are are sure on that, but
you know, you're talking weeks away.
Speaker 1 (18:00):
I mean, I thought it was very interesting.
Speaker 6 (18:01):
Bloomberger Economics made the point that it'll be pretty much
irrelevant for fourth quarter GDP in the US unless it
extends beyond mid November. So they're basically saying economically, it
doesn't matter unless it's like we're talking six weeks or more.
I think markets will start to panic before then, but
you know, probably we could go a month before this
becomes a binary cliff edge. Now, the point is you
(18:23):
don't want it to get there, because it does get
to the cliff edge. These are markets that are not
priced to be disrupted. These are markets where people are
very extended in the consensus trades. So if we go
off that cliff edge, it could be horrible, but I
you know, we're a long way from that.
Speaker 2 (18:36):
Yeah, okay, Well, taught to us a little bit more
about the bond markets then, because reporting on bond traders
putting money into options bets that ten year treasuries are
on the cusp of a significant rally. So how does
that thread into your view on treasuries?
Speaker 6 (18:52):
Now, yeah, I mean that's kind of a consensus the
moment that this will be support treasuries, and it's supported
by the fact that, you know, the shut inn we'll
have some short term dynamics in terms of that it'll.
Speaker 1 (19:03):
Delay data or cloud.
Speaker 6 (19:05):
You know, or undermine the data that we do get,
and therefore there's no chance to kind of disrupt the
narrative that the administration is pushing, which is that inflation
is under control and the US needs to cut rates rapidly,
and that'll be facilitated at some point because if you know,
if you get a lot of fured workers who then
go on temporary job leaver status, you could get a
(19:25):
temporary spike at unemployment rate, which would then help Trump
put further pressure on the FED, And of course FED
officials would look through that theoretically, but if they're getting
a lot of pressure kind of going, oh my god,
we need to you know, cut rates dramatically, and then
suddenly those those insust rates would would sorry that theo's
unemployment rates would fall back down after the shut and ended.
So this kind of all plays into the administration kind
(19:46):
of hands, you know, And that's why I understand why
people are kind of going, hey, buy treasuries. The administration
wants to yields lower. It's the kind of consensus play here.
I just feel it's very consensus, and everyone knows that
the real problem in the US has got is that
it's got an inflation problem that it just can't get
away from. We talk about we're at the end of
the kind of deflationary phase, dissinflationary phase, and we're still
(20:08):
sticky above three percent. Really, so I think that I
don't think you'ld go massively lower.
Speaker 1 (20:12):
But even if there's a knee jerk reaction.
Speaker 3 (20:14):
Just on the question of the data release is being delayed,
of course, Friday's jobs report and focus for that. I mean,
how serious is that or how much does that affect
things in the medium term if we don't get that
data for a while.
Speaker 1 (20:26):
Medium term, like not at all.
Speaker 6 (20:27):
I mean, look, no one can remember, you know when
we got delay data before you go look up in
the precedent and go, yeah, that didn't come until two
weeks later. Oh yeah, we didn't get the CPI report
until thirtieth of October rather than sixteenth of October. And
like I was trading back during some of this the time,
you know, you move on from it. It doesn't decide the
medium term future from a short term point of view. Look,
first of all, the FED looks through all these delays
(20:49):
and stuff. It looks all through all these temporary problems
as long as they stay tempering. And that's why I
said there is a cliff edge, but it's not close
as long as temporarily look through it. Probably the other
thing is we over react to other alternative forms of data,
of which Bloomberg provides a lot and private forms of data.
People aren't used to look at these data's resources to there.
They're algos, their programs, their models, they're spreadsheets aren't worked
(21:13):
to trigger off them, which causes a little bit of
like disruption and kind of unnecessary short term volatility, but
again non medium term. So everything is important that this
causes is this is ultimately going to be a short
term story that consumes us for a couple of weeks
unless it passes some binary tipping point. And as I
said that binar timpoint point, we don't know when it is,
but it's probably a few weeks away.
Speaker 3 (21:31):
Mark, great to have you with us. Thanks for your analysis.
Our Markets Live Executive editor Mark cod Moore, stay with us.
More from Bloomberg daybaqube coming up after this. Now let's
bring you another of our top interviews this morning. So
this year has seen huge uncertainty in terms of trade tensions,
(21:51):
fiscal policy, geopolitical risks. What does that mean for investors,
for CEOs and philanthropists looking forwards? Well, this is at
the high of Bloomberg's Women, Money and Power Conference today.
When it comes to the energy transition, climate change continues
to accelerate even as the Trump administration is pushed to
dismantle renewable energy projects and as we've seen ourtuitional intelligence
(22:16):
create power demands globally. Now the new climate is a
group which has tasked itself with accelerating institutional investment into
climate change technology. So ahead of the summit, I've been
speaking to the group's founder and CEO, Diane Schrader, and
been asking her what is on offer to investors who
are interested in the climate space.
Speaker 12 (22:37):
Now.
Speaker 11 (22:38):
I think that there are opportunities everywhere. I think one
of the things that we look at is, particularly the
energy side, is infrastructure. There's transmission, there's storage, There's all
sorts of opportunities. Ann and you've mentioned when that Europe
is certainly a leader in this area as well. If
you go back to nuclear, one of the things that
(23:00):
that the UK and the United States have done is
they've agreed to share lessons. And I think that not
only does this applied to nuclear, but I think especially
in private markets, this applies to all of the areas
of energy. You know, where we can go into new
frontiers and then share the lessons of those early pioneering
projects such that we can standardize and expand on those.
(23:24):
That's treminously important. And again we've seen this already in solar,
We've seen this in wind, We're seeing this in storage.
We'll see this as again we go further into nuclear,
enhanced geothermal and such.
Speaker 2 (23:37):
You've just finished hosting your National Security Salon event, which
has been looking at the intersection between climate, national security,
and these institutional investors and investments. You had I think
something like thirteen trillion dollars in terms of assets onto
management being managed by the attendees. Did you get the
(23:59):
sort of buy in the you'd hoped for from that event?
Speaker 7 (24:03):
Oh, it was absolutely thrilling.
Speaker 11 (24:05):
We've been hosting the Climate Salon for eight years and
I had been saying that peak salon was in London
going into the Glasgow cop going back in twenty twenty one,
we had about eleven trillion nascets center management at that salon,
and if you look back at the trends, there is
tremendous interest in climate, not only from governments, from corporations,
(24:26):
from banks, and certainly from institutional investors. And so this year,
as you'd said, there are some kind of policy headwinds
in the climate area, and so it was surprising to
us to see so much interest in this particular intersection. Again,
it goes back to the fact that a lot of
this is focused on infrastructure, and these are very big
(24:48):
ticket items and so it takes institutional investment to drive
it forward.
Speaker 2 (24:53):
I suppose there's a lot of attention also on the
China model effectively, which is not either all but and
when it comes to renewables and the carbon economy, do
you think that others are taking lessons away from that
strategy that is evident in China.
Speaker 11 (25:12):
There's a tremendous, tremendous discussion about China at Climate Week
that I just attended last week, and I think that
a lot of folks are saying that I here in
the United States were really good at inventing from zero
to one, and China is great from one to two.
And if you look at where they've gone in their
investments and innovation in climate, they're just doing an exceptional
(25:36):
job of scaling and replicating and standardizing these opportunities. So
I think there are a lot of takeaways and such
from China that we could replicate in other places. For sure,
I would like to see us share, you know, more
of these technologies and again the information and such from them.
Speaker 7 (25:54):
But it's inspiring. It's inspiring to see.
Speaker 2 (25:57):
The biggest obstacle that you think is standing in the
way of harnessing institutional investment for climate purposes.
Speaker 7 (26:04):
Right now, it's always product.
Speaker 11 (26:06):
Institutional investors see a lot of opportunities, but they have
very strict requirements in what they invest in, and so
what we need is to provide them more opportunities that
fit their strict criteria. They have long term obligations to meet.
At the same time, they're also looking at some of
their shorter term needs as well, and so it's always
just advancing more product and that means getting some of
(26:29):
these small to mid range opportunities up to the scale
that institutional investors need done.
Speaker 2 (26:35):
In the summer, you were in the UK with an
event and there was a lot of focus on national
security and energies, especially for the UK.
Speaker 11 (26:44):
We hosted a series of dinners with institutional investors during
that time and it was interesting. One of them focused
on this area of climate national security and the big question.
Particularly there were family offices at that dinner wondering who's
now security. So if you go back to June and
there are all these conversations, of course around how needle
(27:07):
countries are going to participate more in investing in national security.
A lot of that innovation does come from the United States. Certainly,
not all of it, but a lot of it does.
Speaker 7 (27:16):
And so I think a.
Speaker 11 (27:17):
Lot of people in Europe, in particularly in the UK,
family offices and the like, are wondering how to participate
in this. There's going to be tremendous, tremendous investment opportunities,
and so they just want to be more connected. And
I think with our climate salons, the way that we
bring together these conversations and some examples in such areas
of investment, I think that that's really helping to move
(27:39):
this forward.
Speaker 3 (27:42):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (27:48):
Look for us on your podcast feed every morning, on Apples, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (27:55):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg.
Speaker 2 (28:00):
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 3 (28:09):
I'm Stephen Carol. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe.
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