September 30, 2025 • 22 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Vice President JD Vance said he believes the US government is on track to shut down, seeking to pin the blame on Democrats one day before federal funding is set to lapse.
(2) President Donald Trump and Israeli Prime Minister Benjamin Netanyahu said they had agreed to a 20-point plan designed to end the war in Gaza, though the prospects for peace remained unclear without the direct involvement of Hamas.
(3) Chinese President Xi Jinping is renewing a push for the US to change a decades-old phrase describing its stance on Taiwan independence, a concession that would be a major diplomatic win for Beijing.
(4) Theresa May danced to ABBA. Rishi Sunak had his wife introduce him. Liz Truss spent the whole time scrapping budget measures announced only days before.
(5) European Union leaders meeting in Copenhagen this week will discuss a slate of flagship defense projects, including a European drone wall and an air-defense shield.
Podcast Conversation:How to Play Alphadots, Bloomberg's New Daily Word Puzzle
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. This is the Blue
Big Day BAC podcast. Good morning, It's Tuesday, the thirtieth
of September. I'm Caroline Hepgitt in London.
Speaker 2 (00:15):
And I'm Stephen Caroline Brussels. Coming up today, the US
Vice President says the federal government is headed for a
shutdown as the uncertainty sends gold prices to another record high.
Speaker 1 (00:26):
Donald Trump and Benjamin Ettania who back a twenty point
plan to end the war in Gaza, but it appears
unlikely to win support from Hermas.
Speaker 2 (00:35):
Plus from landslide to low poll ratings, caer Starmer bets
on a message of decency over division as he seeks
to revitalize Labour's political fortunes.
Speaker 1 (00:45):
Let's start with the roundup of our top stories.
Speaker 2 (00:48):
The price of gold has hit another record high as
fears mount that a looming US government shutdown will stall
data releases crucial for charting the federal reserves rate path.
The spot price for the metal climbed above three thousand,
eight hundred and sixty five dollars announce as Democratic and
Republican leaders remained far apart after meeting President Trump. Democrats
(01:09):
want to extend healthcare subsidies and reverse Medicaid cuts from
Trump's tax law before agreeing to a spending bill. Speaking
after the White House meeting, Vice President jad Vance sought
to blame the Democratic Party for any shutdown.
Speaker 3 (01:22):
If they want to talk about how to fix American
healthcare policy, let's do it. The Speaker would love to
do it, the CITI majority of leader would love to
do it.
Speaker 4 (01:29):
Let's work on it together.
Speaker 3 (01:30):
But let's do it in the context of an open
government that's providing essential services to the American people. That's
all that we're proposing to do, and the fact that
they refuse to do that shows how unreasonable their position is.
I think we're headed into a shutdown because the Democrats
won't do the right thing.
Speaker 4 (01:45):
I hope they changed their mind.
Speaker 2 (01:46):
What we're to see Jedivance speaking there as US government
funding is set to expire at five oh one am
London time tomorrow. If funding laps is, the first major
data release that could be delayed would be Friday's Bureau
of Labors to take STICS Employment report. The agency's Marquee
report on CPI inflation could follow, while data on retail
(02:07):
sales and new housing construction are also at risk of
delay in an extended shutdown.
Speaker 1 (02:14):
Now, President Donald Trump and Israeli Prime Minister Benjamin Netanya
who say they have agreed a twenty point plan to
end the war in Gaza. At a joint press conference
in the White House, the two leaders presented the framework
as an ultimatum to Hamas to surrender and play no
role in the future of Gaza. Trump called the plan
an opportunity for quote eternal peace in the Middle East,
(02:37):
beginning with the release of the remaining Israeli hostages.
Speaker 5 (02:41):
I also want to thank Prime Minister Ntniale for agreeing
to the plan if accepted by Hamas's proposal calls for
the release of all remaining hostages immediately, but in no
case more than seventy two hours.
Speaker 1 (02:57):
President Trump said the plan had the support of a
number of Middle Eastern leaders. However, the prospective peace remains
unclear without the direct involvement of Hamas. The plan involves
Gaza being handed over to a technocratic a political Palestinian
committee overseen by a Board of Peace, which would be
chaired by President Trump, with former UK Prime Minister Tony
(03:20):
Blair playing a role. Prime Minister Benjamin Netanya, who said
Israel will achieve its objectives either way.
Speaker 6 (03:29):
But if Hamas rejects your plan, mister President, or if
they supposedly accepted and then then basically do everything to
counter it, then Israel will finish the job by itself.
Speaker 1 (03:42):
Prime Minister Netanyahu there as, President Trump said that Israel
would have full US backing to destroy Hamas if it
rejects the deal.
Speaker 2 (03:51):
Binberg understands that China has asked the Trump administration to
officially declare that it opposes Taiwan's independence. The suggested wording
is stronger than the Biden administration's previous statement, which was
that US officials do not support the island seeking formal independence.
The Trump administration hasn't decided on the request, which is
part of a broader list of demands from Beijing. The
(04:13):
State Department said yesterday that Washington's position on Taiwan hasn't
changed and the US remains committed to the One China policy.
Taiwan's Ministry of Foreign Affairs spokesman said Taipei continues to
closely monitor Beijing's manipulative narratives.
Speaker 1 (04:30):
EU leaders will this week discuss major new defense projects,
including plans for a so called European drone Wall. Bloomberg's
Mihal Kabbala reports now.
Speaker 7 (04:40):
It's a push that's gained urgency after a wave of
Russian incursions in Tornado airspace. The European Commission has outlined
plans to boost air and missile defenses, which leaders will
discuss in Copenhagen in the coming days. The drone wall
would build on Ukraine's battle field experience and involve European
startups and experts. An Eastern Flankwatch project aims to add
(05:02):
layers of protection against hybrid threats. It's all a part
of you plans to close gaps in European defenses by
twenty thirty in Brussels, Michael Kobola, Bloomberg Radio.
Speaker 2 (05:14):
In the UK, the Prime Minister will use his Labor
Party conference speech today to say Britain faces a defining
choice between decency and division. Ker Starmer is seeking to
adopt a tougher line on immigration while going on the
attack against Nigel Faraj's pole leading reform UK Party. Starmer's
speech comes as as Chancellor Rachel Reeves used her conference
(05:36):
speech to hit back at those criticizing how she's.
Speaker 4 (05:40):
Handling the economy with a.
Speaker 2 (05:42):
Global uncertainty that we have seen ripple.
Speaker 4 (05:45):
Through financial markets.
Speaker 8 (05:46):
There are still critics out there who are too readily
forget the consequences of reckless economic choices.
Speaker 2 (05:51):
We will never ever do what the Conservatives did to
ordinary working people in this country. Rachel Reeves spoke there
as new polling from IPSAS shows her to be the
most unpopular chancellor since records began almost fifty years ago.
While she's largely been able to keep the bond markets
on side, voters now see her less favorably than Quasi Kwarteng,
(06:13):
the architect of Liz Truss's mini budget that saw debt
premiums spiral.
Speaker 1 (06:20):
Now, Glaxo Smith Klein CEO Emma Walmsley is stepping down
after nine years leading the pharmaceutical giant, but her departure
means the UK is losing another high profile female business leader.
Bloomberg's Tiba at A Bio has the story.
Speaker 9 (06:35):
Despite efforts to attract more female CEOs to the FOOTSYA Index,
the number will remain at just nine after GSK CEO
Emma Walmsley's exit. The lack of women leading the country's
biggest firms has been criticized by campaigners who say businesses
have boosted border representation but failed to crack leadership roles.
(06:55):
Some of the country's biggest companies did appoint women to
top jobs this year, in uading, WPP, National Grid and
in Tain, but their arrivals come alongside departures from other
senior figures, such as Pets at Home CEO Lissa McGowan,
who left this month and Rita Rose Gang will step
down from shopping center Landlord Hammerson in twenty twenty six. Walmsley,
(07:18):
who will leave her role at the end of the year,
was a prominent fixture, leading the firm through the pandemic
and the separation of its consumer business in London.
Speaker 4 (07:26):
Tea Adebay a Bloomberg Radio.
Speaker 2 (07:28):
Those are your top stories on the program this morning.
Looking at the markets, the MSCIS Pacific Index is three
tenths of one percent higher this morning. We're keeping eyeing
those goal prices up eight tenths of one percent to
three thousand, eight hundred and sixty four dollars, just half
the highs that have been hit into trading, but still
hovering close to us. The Bloomberg Dollar Sparta Index holding
(07:50):
on to its weakness yesterday down slightly on the day,
so the Euro's training at one seventeen thirty This morning,
eurostocks fifty futures are down by two tenths of one percent.
Speaker 1 (08:00):
Now, in a moment, we'll bring you more on the
latest regarding risks of a US government shut down, but
before we discuss that, something else has caught our ride
this morning. Are you decent at games, Stephen Carroll?
Speaker 2 (08:11):
No, horrible at them, is the short answer. But actually
this really appeals to me because it sort of combines
a few different ways of exercising parts of your brain.
So Alpha Dot Alpha Dots is the Bloomberg's new daily
word game. So it's sort of a cross between a
word puzzle, a crossword, and then also a chart. So
(08:34):
I'll try to explain it and see if you follow me, right, Okay,
So their cryptic clues like a crossword, suggest the worth
you're trying to guess. You know how many letters it is,
and you have to try and fill in the blanks.
What you get, in addition is a line graph which
on the vertical axis goes from A at the top
to Z at the bottoms. The dot on the chart
will tell you whether it's closer to the start or
the end of the alphabet, and of course they're all
(08:55):
relative as well. You also have a chance to guess,
so you can basically say, okay, is there an A
in the world, and it will tell you where it
is made of A fair idea if it was an A,
because it's going to be at the top of the
chart as well. But that's a mistake I made the
first time I played it. Two but it is you
can sort of piece together at the bits. Then I
have to say, when I was trying it, I either
got the word immediately based on the clue or I
(09:16):
had absolutely no idea, so I made quite a lot
of use of the plot feature to try and guess
what the word was. Really diverse subjects in it, lots
to play.
Speaker 1 (09:30):
With, and it's really good fun. It is way harder
to explain this game than it is just to play.
I got it once I played it, and yeah, it's
I don't know. So many people are addicted to daily crosswords.
Great for your brain, yes.
Speaker 2 (09:43):
And this is a daily game as well, so you
can all join in and play, and of course you
can share how you get on how long it takes
it to solve it. How many hints you needed? I
needed a loss to try and get to the end
as well. Bloomberg dot Com forward slash alpha dots to play.
Speaker 1 (09:57):
Now, let's bring you more on the looming guv meant
shut down in the United States after a meeting of
congressional leaders and President Trump which ended without agreements.
Speaker 2 (10:07):
A little earlier, we spoke to our senior US Government editor,
Derek Woolbank and started by asking him whether a deal
could be found before tomorrow's deadline.
Speaker 8 (10:16):
Well, Steve and I would say at this point, there
are certainly exit ramps. There are ways that you can
get to a conclusion without a shutdown, but they are
becoming increasingly distant. Right now, Republicans and Democrats are locked
in a stalemate. Democrats are demanding some healthcare money that
Republicans do not want to give, and right now, I mean,
(10:39):
it's not even looking like they want to talk seriously.
Congressional leaders joined President Donald Trump and Vice President JD.
Speaker 4 (10:47):
Vance at the White House.
Speaker 8 (10:49):
Those talks seemed to be a franken candid exchange of views,
but it doesn't necessarily look like we are any closer
to a deal as a result of them. Indeed, after
the meeting, Donald Trump posted something on his social media mocking.
Speaker 4 (11:06):
Chuck Schumer and.
Speaker 8 (11:08):
Hakeem Jeffries and very much not seeming like the sort
of guy who is looking to try and find seven
Democratic votes he currently doesn't have.
Speaker 1 (11:19):
So then, in terms of what a shutdown means for
Donald Trump, for his administration, what might happen?
Speaker 8 (11:28):
Ok, Caroline, I would say in a shutdown, you sort
of start with the idea that things start off medium
bed and then get worse as time progresses. And you
could say that in a number of different ways, but basically,
things start to have consequences, let's say in phases. And
(11:49):
so initially you'll sit there and say, Okay, national parks
are shut down, and you're evicting people from federal campsites,
and it's things like that. Event you get to the
point where US troops and foreign deployments aren't getting paid,
and members of the military might be missing mortgage payments
and things of that nature, and so your political consequences
(12:13):
start stepping up and stepping up. You have difficulties in
the US government, economic data that markets rely on may
not be released on time, other things of that nature.
The more that this goes on, the more it gets difficult,
and one of the key questions is going to be
who do US voters blame for the shutdown, particularly independent voters.
(12:35):
Now I've seen some polling initially suggest that maybe by
a small margin, independent voters are currently saying Republicans are
a little bit more responsible. But a lot of this
stuff does come down to a pox on both their houses.
And we talked to Lindsey Graham, the Republican Senator from
(12:56):
South Carolina, and one of the things he was saying
was that Republicans, in his view, have learned a lesson
about asking for policy things they don't have the votes
for in context of a shutdown, saying that when you
play that game, you only wind up getting burned and
have to eventually eat funding the government for nothing in exchange.
Speaker 2 (13:18):
Yeah, okay, So the consequence is potentially big politically, And
of course, the first piece of economic data that could
be disrupted by this is the jobs reports and the
initial jobless claims numbers to come later this week. In
the meantime, are there issues that we should be watching
in these negotiations where we might see progress or the
key blocking of any deal.
Speaker 8 (13:40):
Well, the thing that I'm looking for is what's your
possible exit ramp. And the most obvious one that I
see that could be taken if people wanted to take it,
that's my big caveat, if people wanted to take it,
is the idea of trying to extend some Obamacare subsidy
money and do that a little bit for maybe a
(14:03):
year or two years or something like that. There are
some cost controls you could put that on, and if
that were seriously being discussed, it's possible that lawmakers could
agree to a short term stopgap bill to kind of
keep the government open while they worked on the legislative
language of that. So that's one of those things that
(14:23):
could be an exit ramp, but right now we don't
see people looking at taking that. The biggest caveat of
all that I have to say, though, is across all
of these sort of US government examples of people hitting
themselves in the face governmentally, you get a lot of
no's before you get to yes. And so, you know,
(14:46):
it's very true that old axiom it's always darkest before
the dawn, but that really is the case here. A
lot of the times, you know, US negotiations become a
sort of vicar of Dibley's Sketch where it's no no no, no, no, no, no, Yes.
Speaker 2 (15:01):
Our senior US government out of Derek worldbang, proving that
he can be funny in every culture by the sound
of things as well, getting a very specifically British reference
into the end of our conversation a little earlier.
Speaker 4 (15:14):
Stay with us.
Speaker 2 (15:15):
More from Bloomberg Daybreak Europe coming up after this.
Speaker 1 (15:20):
Now, let's turn our attention to the Middle East. So
the US President and Israel's Prime minister agreed a plan
to end the war in Gaza, but there's no indication
yet whether her mass will accept the offer. Joining us.
Now is our Middle East and Africa Managing editor Paul
Wallace for more on this story, Paul, Hello, there are
twenty points on this plan. What is actually new compared
(15:43):
to previous attempts to end the war?
Speaker 4 (15:47):
Hi, Carolyne Well.
Speaker 10 (15:48):
One of the things that is new is Trump setting
sort of a firm deadline for ending this war, which
is that it would that would happen within seventy two
hours of both sides accepting this proposal, which now means
Hamas because Israel has accepted it, it would definitively see
(16:09):
Israel pulling its forces back from Gaza, not immediately, it
would be done in stages, and Israel would maintain a
buffer zone within the Palestinian territory for an indefinite period.
The language also made clear that the US, you know,
(16:30):
believes Gazans should be allowed to stay in the territory.
Speaker 4 (16:33):
That there's you know, there's no.
Speaker 10 (16:35):
More talk of turning it into a riviera, as Trump
did back in earlier in the year just after he
returned to power. In fact, the wording now says that
it encourages Palestinians to stay there, but that if they
do leave voluntarily, they must be allowed to come back in.
That's different the ramping up of AID two and Trump's
(16:56):
plants specifying that that will be done through UN agencies. Again,
that's a change and sort of implies that the the GHF,
the sort of Israeli linked group that has been managing
AID since an Israeli blockade ended a few months ago,
that GHF would no longer be working. So there are
(17:18):
quite a lot of things in this plan. I think
it's fair to say that both sides, if they accept this,
will will have conceded on some points. But obviously the
big question is what Hamas says. They're studying the proposal.
Speaker 2 (17:35):
Have we heard anything from them yet? I mean, what
could we did you use that they might respond to this.
Speaker 10 (17:42):
So we've heard nothing beyond that they are studying it,
and they've not said when they're going to give an answer.
Speaker 4 (17:47):
By there is a lot of thinking that.
Speaker 10 (17:51):
They won't, you know, among analysts, that they won't accept
this because it's too much. The concessions on part would
have to be too big. They would have to surrender
and give up all the hostages that they still hold,
forty eight of them roughly twenty of whom are alive.
They'd have to give them up immediately without Israel fully
(18:15):
withdrawing its forces from Gaza.
Speaker 4 (18:17):
At that point.
Speaker 10 (18:18):
So there's certainly a lot of skepticism, and there are
already some people saying that this is a bit of
a cynical plan from both the Americans and Israel that
you know, will end up making you know, that will
end up being you know, if Hamas rejects it, then
it will be presented as something that proves Hamas and
(18:44):
it is not does not want peace.
Speaker 4 (18:47):
Whereas Israel does.
Speaker 10 (18:49):
So there's a lot of skepticism but it is certainly
I think the most you know, this is the closest
we've got to ending this war and achieving a cease
fire in it in many, many months.
Speaker 1 (19:02):
Okay, so it's significant. What about the involvement of states
like Cutter and Turkey for this plan maybe potentially to work.
Speaker 10 (19:13):
I think that definitely is important that those you know,
those countries you've mentioned, Katar, which is a key mediator
between Hamas and Israel and Turkey and broadly speaking the
our world, you know, the likes of Saudi Arabia, the UE,
they are on board with this plan. And it seems Egypt,
which is another mediator and obviously borders Gaza, it's also
(19:36):
on board with this. So that might increase the pressure
on Hamas to to to accept this. I think some
of that, some of those things I mentioned earlier, the
wording that says Gardzan should stay or you know, should
be encouraged to stay in Gaza, and that if they
do leave, it must be voluntary, voluntary, and then must
(20:00):
be allowed to return as and when they want to.
Speaker 4 (20:03):
Language like that is important.
Speaker 10 (20:05):
And Trump also spoke about an eventual pathway being created
for Palestinian statehood.
Speaker 4 (20:12):
Again that language is.
Speaker 10 (20:14):
Very important for other Middle Eastern countries and obviously Palestinians themselves,
they wanted to see something like that. That's the kind
of language that is arguably, arguably amounst to a concession
on Nettinohu's part. And already, you know, there's been some
criticism within the country that you know, this is the
(20:35):
kind of language that could you know, increase pressure on
Israel to eventually accept a Palestinian state, which it does
not want to do at all. So there's you know,
there is, as Trump would say it, there's something for
both warring sides in this. It certainly is key that
(20:57):
you know, Turkey, Katar and other Middle East and states
are on board, and that's something that's been a change
in the last week. Trump met with those states in
New York on the sidelines of the UN General Assembly
last Tuesday, and it seemed to be a very constructive
meeting and much of the plan that was announced yesterday
or sort of published yesterday, came out of that meeting
(21:21):
with those states.
Speaker 2 (21:23):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (21:30):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 2 (21:36):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (21:42):
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 2 (21:51):
I'm Stephen Carroll. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg day Break Europe f
Bloomberg Audio Studios, podcasts, radio news. This is the Blue
Big Day BAC podcast. Good morning, It's Tuesday, the thirtieth
of September. I'm Caroline Hepgitt in London.
Speaker 2 (00:15):
And I'm Stephen Caroline Brussels. Coming up today, the US
Vice President says the federal government is headed for a
shutdown as the uncertainty sends gold prices to another record high.
Speaker 1 (00:26):
Donald Trump and Benjamin Ettania who back a twenty point
plan to end the war in Gaza, but it appears
unlikely to win support from Hermas.
Speaker 2 (00:35):
Plus from landslide to low poll ratings, caer Starmer bets
on a message of decency over division as he seeks
to revitalize Labour's political fortunes.
Speaker 1 (00:45):
Let's start with the roundup of our top stories.
Speaker 2 (00:48):
The price of gold has hit another record high as
fears mount that a looming US government shutdown will stall
data releases crucial for charting the federal reserves rate path.
The spot price for the metal climbed above three thousand,
eight hundred and sixty five dollars announce as Democratic and
Republican leaders remained far apart after meeting President Trump. Democrats
(01:09):
want to extend healthcare subsidies and reverse Medicaid cuts from
Trump's tax law before agreeing to a spending bill. Speaking
after the White House meeting, Vice President jad Vance sought
to blame the Democratic Party for any shutdown.
Speaker 3 (01:22):
If they want to talk about how to fix American
healthcare policy, let's do it. The Speaker would love to
do it, the CITI majority of leader would love to
do it.
Speaker 4 (01:29):
Let's work on it together.
Speaker 3 (01:30):
But let's do it in the context of an open
government that's providing essential services to the American people. That's
all that we're proposing to do, and the fact that
they refuse to do that shows how unreasonable their position is.
I think we're headed into a shutdown because the Democrats
won't do the right thing.
Speaker 4 (01:45):
I hope they changed their mind.
Speaker 2 (01:46):
What we're to see Jedivance speaking there as US government
funding is set to expire at five oh one am
London time tomorrow. If funding laps is, the first major
data release that could be delayed would be Friday's Bureau
of Labors to take STICS Employment report. The agency's Marquee
report on CPI inflation could follow, while data on retail
(02:07):
sales and new housing construction are also at risk of
delay in an extended shutdown.
Speaker 1 (02:14):
Now, President Donald Trump and Israeli Prime Minister Benjamin Netanya
who say they have agreed a twenty point plan to
end the war in Gaza. At a joint press conference
in the White House, the two leaders presented the framework
as an ultimatum to Hamas to surrender and play no
role in the future of Gaza. Trump called the plan
an opportunity for quote eternal peace in the Middle East,
(02:37):
beginning with the release of the remaining Israeli hostages.
Speaker 5 (02:41):
I also want to thank Prime Minister Ntniale for agreeing
to the plan if accepted by Hamas's proposal calls for
the release of all remaining hostages immediately, but in no
case more than seventy two hours.
Speaker 1 (02:57):
President Trump said the plan had the support of a
number of Middle Eastern leaders. However, the prospective peace remains
unclear without the direct involvement of Hamas. The plan involves
Gaza being handed over to a technocratic a political Palestinian
committee overseen by a Board of Peace, which would be
chaired by President Trump, with former UK Prime Minister Tony
(03:20):
Blair playing a role. Prime Minister Benjamin Netanya, who said
Israel will achieve its objectives either way.
Speaker 6 (03:29):
But if Hamas rejects your plan, mister President, or if
they supposedly accepted and then then basically do everything to
counter it, then Israel will finish the job by itself.
Speaker 1 (03:42):
Prime Minister Netanyahu there as, President Trump said that Israel
would have full US backing to destroy Hamas if it
rejects the deal.
Speaker 2 (03:51):
Binberg understands that China has asked the Trump administration to
officially declare that it opposes Taiwan's independence. The suggested wording
is stronger than the Biden administration's previous statement, which was
that US officials do not support the island seeking formal independence.
The Trump administration hasn't decided on the request, which is
part of a broader list of demands from Beijing. The
(04:13):
State Department said yesterday that Washington's position on Taiwan hasn't
changed and the US remains committed to the One China policy.
Taiwan's Ministry of Foreign Affairs spokesman said Taipei continues to
closely monitor Beijing's manipulative narratives.
Speaker 1 (04:30):
EU leaders will this week discuss major new defense projects,
including plans for a so called European drone Wall. Bloomberg's
Mihal Kabbala reports now.
Speaker 7 (04:40):
It's a push that's gained urgency after a wave of
Russian incursions in Tornado airspace. The European Commission has outlined
plans to boost air and missile defenses, which leaders will
discuss in Copenhagen in the coming days. The drone wall
would build on Ukraine's battle field experience and involve European
startups and experts. An Eastern Flankwatch project aims to add
(05:02):
layers of protection against hybrid threats. It's all a part
of you plans to close gaps in European defenses by
twenty thirty in Brussels, Michael Kobola, Bloomberg Radio.
Speaker 2 (05:14):
In the UK, the Prime Minister will use his Labor
Party conference speech today to say Britain faces a defining
choice between decency and division. Ker Starmer is seeking to
adopt a tougher line on immigration while going on the
attack against Nigel Faraj's pole leading reform UK Party. Starmer's
speech comes as as Chancellor Rachel Reeves used her conference
(05:36):
speech to hit back at those criticizing how she's.
Speaker 4 (05:40):
Handling the economy with a.
Speaker 2 (05:42):
Global uncertainty that we have seen ripple.
Speaker 4 (05:45):
Through financial markets.
Speaker 8 (05:46):
There are still critics out there who are too readily
forget the consequences of reckless economic choices.
Speaker 2 (05:51):
We will never ever do what the Conservatives did to
ordinary working people in this country. Rachel Reeves spoke there
as new polling from IPSAS shows her to be the
most unpopular chancellor since records began almost fifty years ago.
While she's largely been able to keep the bond markets
on side, voters now see her less favorably than Quasi Kwarteng,
(06:13):
the architect of Liz Truss's mini budget that saw debt
premiums spiral.
Speaker 1 (06:20):
Now, Glaxo Smith Klein CEO Emma Walmsley is stepping down
after nine years leading the pharmaceutical giant, but her departure
means the UK is losing another high profile female business leader.
Bloomberg's Tiba at A Bio has the story.
Speaker 9 (06:35):
Despite efforts to attract more female CEOs to the FOOTSYA Index,
the number will remain at just nine after GSK CEO
Emma Walmsley's exit. The lack of women leading the country's
biggest firms has been criticized by campaigners who say businesses
have boosted border representation but failed to crack leadership roles.
(06:55):
Some of the country's biggest companies did appoint women to
top jobs this year, in uading, WPP, National Grid and
in Tain, but their arrivals come alongside departures from other
senior figures, such as Pets at Home CEO Lissa McGowan,
who left this month and Rita Rose Gang will step
down from shopping center Landlord Hammerson in twenty twenty six. Walmsley,
(07:18):
who will leave her role at the end of the year,
was a prominent fixture, leading the firm through the pandemic
and the separation of its consumer business in London.
Speaker 4 (07:26):
Tea Adebay a Bloomberg Radio.
Speaker 2 (07:28):
Those are your top stories on the program this morning.
Looking at the markets, the MSCIS Pacific Index is three
tenths of one percent higher this morning. We're keeping eyeing
those goal prices up eight tenths of one percent to
three thousand, eight hundred and sixty four dollars, just half
the highs that have been hit into trading, but still
hovering close to us. The Bloomberg Dollar Sparta Index holding
(07:50):
on to its weakness yesterday down slightly on the day,
so the Euro's training at one seventeen thirty This morning,
eurostocks fifty futures are down by two tenths of one percent.
Speaker 1 (08:00):
Now, in a moment, we'll bring you more on the
latest regarding risks of a US government shut down, but
before we discuss that, something else has caught our ride
this morning. Are you decent at games, Stephen Carroll?
Speaker 2 (08:11):
No, horrible at them, is the short answer. But actually
this really appeals to me because it sort of combines
a few different ways of exercising parts of your brain.
So Alpha Dot Alpha Dots is the Bloomberg's new daily
word game. So it's sort of a cross between a
word puzzle, a crossword, and then also a chart. So
(08:34):
I'll try to explain it and see if you follow me, right, Okay,
So their cryptic clues like a crossword, suggest the worth
you're trying to guess. You know how many letters it is,
and you have to try and fill in the blanks.
What you get, in addition is a line graph which
on the vertical axis goes from A at the top
to Z at the bottoms. The dot on the chart
will tell you whether it's closer to the start or
the end of the alphabet, and of course they're all
(08:55):
relative as well. You also have a chance to guess,
so you can basically say, okay, is there an A
in the world, and it will tell you where it
is made of A fair idea if it was an A,
because it's going to be at the top of the
chart as well. But that's a mistake I made the
first time I played it. Two but it is you
can sort of piece together at the bits. Then I
have to say, when I was trying it, I either
got the word immediately based on the clue or I
(09:16):
had absolutely no idea, so I made quite a lot
of use of the plot feature to try and guess
what the word was. Really diverse subjects in it, lots
to play.
Speaker 1 (09:30):
With, and it's really good fun. It is way harder
to explain this game than it is just to play.
I got it once I played it, and yeah, it's
I don't know. So many people are addicted to daily crosswords.
Great for your brain, yes.
Speaker 2 (09:43):
And this is a daily game as well, so you
can all join in and play, and of course you
can share how you get on how long it takes
it to solve it. How many hints you needed? I
needed a loss to try and get to the end
as well. Bloomberg dot Com forward slash alpha dots to play.
Speaker 1 (09:57):
Now, let's bring you more on the looming guv meant
shut down in the United States after a meeting of
congressional leaders and President Trump which ended without agreements.
Speaker 2 (10:07):
A little earlier, we spoke to our senior US Government editor,
Derek Woolbank and started by asking him whether a deal
could be found before tomorrow's deadline.
Speaker 8 (10:16):
Well, Steve and I would say at this point, there
are certainly exit ramps. There are ways that you can
get to a conclusion without a shutdown, but they are
becoming increasingly distant. Right now, Republicans and Democrats are locked
in a stalemate. Democrats are demanding some healthcare money that
Republicans do not want to give, and right now, I mean,
(10:39):
it's not even looking like they want to talk seriously.
Congressional leaders joined President Donald Trump and Vice President JD.
Speaker 4 (10:47):
Vance at the White House.
Speaker 8 (10:49):
Those talks seemed to be a franken candid exchange of views,
but it doesn't necessarily look like we are any closer
to a deal as a result of them. Indeed, after
the meeting, Donald Trump posted something on his social media mocking.
Speaker 4 (11:06):
Chuck Schumer and.
Speaker 8 (11:08):
Hakeem Jeffries and very much not seeming like the sort
of guy who is looking to try and find seven
Democratic votes he currently doesn't have.
Speaker 1 (11:19):
So then, in terms of what a shutdown means for
Donald Trump, for his administration, what might happen?
Speaker 8 (11:28):
Ok, Caroline, I would say in a shutdown, you sort
of start with the idea that things start off medium
bed and then get worse as time progresses. And you
could say that in a number of different ways, but basically,
things start to have consequences, let's say in phases. And
(11:49):
so initially you'll sit there and say, Okay, national parks
are shut down, and you're evicting people from federal campsites,
and it's things like that. Event you get to the
point where US troops and foreign deployments aren't getting paid,
and members of the military might be missing mortgage payments
and things of that nature, and so your political consequences
(12:13):
start stepping up and stepping up. You have difficulties in
the US government, economic data that markets rely on may
not be released on time, other things of that nature.
The more that this goes on, the more it gets difficult,
and one of the key questions is going to be
who do US voters blame for the shutdown, particularly independent voters.
(12:35):
Now I've seen some polling initially suggest that maybe by
a small margin, independent voters are currently saying Republicans are
a little bit more responsible. But a lot of this
stuff does come down to a pox on both their houses.
And we talked to Lindsey Graham, the Republican Senator from
(12:56):
South Carolina, and one of the things he was saying
was that Republicans, in his view, have learned a lesson
about asking for policy things they don't have the votes
for in context of a shutdown, saying that when you
play that game, you only wind up getting burned and
have to eventually eat funding the government for nothing in exchange.
Speaker 2 (13:18):
Yeah, okay, So the consequence is potentially big politically, And
of course, the first piece of economic data that could
be disrupted by this is the jobs reports and the
initial jobless claims numbers to come later this week. In
the meantime, are there issues that we should be watching
in these negotiations where we might see progress or the
key blocking of any deal.
Speaker 8 (13:40):
Well, the thing that I'm looking for is what's your
possible exit ramp. And the most obvious one that I
see that could be taken if people wanted to take it,
that's my big caveat, if people wanted to take it,
is the idea of trying to extend some Obamacare subsidy
money and do that a little bit for maybe a
(14:03):
year or two years or something like that. There are
some cost controls you could put that on, and if
that were seriously being discussed, it's possible that lawmakers could
agree to a short term stopgap bill to kind of
keep the government open while they worked on the legislative
language of that. So that's one of those things that
(14:23):
could be an exit ramp, but right now we don't
see people looking at taking that. The biggest caveat of
all that I have to say, though, is across all
of these sort of US government examples of people hitting
themselves in the face governmentally, you get a lot of
no's before you get to yes. And so, you know,
(14:46):
it's very true that old axiom it's always darkest before
the dawn, but that really is the case here. A
lot of the times, you know, US negotiations become a
sort of vicar of Dibley's Sketch where it's no no no, no, no, no, no, Yes.
Speaker 2 (15:01):
Our senior US government out of Derek worldbang, proving that
he can be funny in every culture by the sound
of things as well, getting a very specifically British reference
into the end of our conversation a little earlier.
Speaker 4 (15:14):
Stay with us.
Speaker 2 (15:15):
More from Bloomberg Daybreak Europe coming up after this.
Speaker 1 (15:20):
Now, let's turn our attention to the Middle East. So
the US President and Israel's Prime minister agreed a plan
to end the war in Gaza, but there's no indication
yet whether her mass will accept the offer. Joining us.
Now is our Middle East and Africa Managing editor Paul
Wallace for more on this story, Paul, Hello, there are
twenty points on this plan. What is actually new compared
(15:43):
to previous attempts to end the war?
Speaker 4 (15:47):
Hi, Carolyne Well.
Speaker 10 (15:48):
One of the things that is new is Trump setting
sort of a firm deadline for ending this war, which
is that it would that would happen within seventy two
hours of both sides accepting this proposal, which now means
Hamas because Israel has accepted it, it would definitively see
(16:09):
Israel pulling its forces back from Gaza, not immediately, it
would be done in stages, and Israel would maintain a
buffer zone within the Palestinian territory for an indefinite period.
The language also made clear that the US, you know,
(16:30):
believes Gazans should be allowed to stay in the territory.
Speaker 4 (16:33):
That there's you know, there's no.
Speaker 10 (16:35):
More talk of turning it into a riviera, as Trump
did back in earlier in the year just after he
returned to power. In fact, the wording now says that
it encourages Palestinians to stay there, but that if they
do leave voluntarily, they must be allowed to come back in.
That's different the ramping up of AID two and Trump's
(16:56):
plants specifying that that will be done through UN agencies. Again,
that's a change and sort of implies that the the GHF,
the sort of Israeli linked group that has been managing
AID since an Israeli blockade ended a few months ago,
that GHF would no longer be working. So there are
(17:18):
quite a lot of things in this plan. I think
it's fair to say that both sides, if they accept this,
will will have conceded on some points. But obviously the
big question is what Hamas says. They're studying the proposal.
Speaker 2 (17:35):
Have we heard anything from them yet? I mean, what
could we did you use that they might respond to this.
Speaker 10 (17:42):
So we've heard nothing beyond that they are studying it,
and they've not said when they're going to give an answer.
Speaker 4 (17:47):
By there is a lot of thinking that.
Speaker 10 (17:51):
They won't, you know, among analysts, that they won't accept
this because it's too much. The concessions on part would
have to be too big. They would have to surrender
and give up all the hostages that they still hold,
forty eight of them roughly twenty of whom are alive.
They'd have to give them up immediately without Israel fully
(18:15):
withdrawing its forces from Gaza.
Speaker 4 (18:17):
At that point.
Speaker 10 (18:18):
So there's certainly a lot of skepticism, and there are
already some people saying that this is a bit of
a cynical plan from both the Americans and Israel that
you know, will end up making you know, that will
end up being you know, if Hamas rejects it, then
it will be presented as something that proves Hamas and
(18:44):
it is not does not want peace.
Speaker 4 (18:47):
Whereas Israel does.
Speaker 10 (18:49):
So there's a lot of skepticism but it is certainly
I think the most you know, this is the closest
we've got to ending this war and achieving a cease
fire in it in many, many months.
Speaker 1 (19:02):
Okay, so it's significant. What about the involvement of states
like Cutter and Turkey for this plan maybe potentially to work.
Speaker 10 (19:13):
I think that definitely is important that those you know,
those countries you've mentioned, Katar, which is a key mediator
between Hamas and Israel and Turkey and broadly speaking the
our world, you know, the likes of Saudi Arabia, the UE,
they are on board with this plan. And it seems Egypt,
which is another mediator and obviously borders Gaza, it's also
(19:36):
on board with this. So that might increase the pressure
on Hamas to to to accept this. I think some
of that, some of those things I mentioned earlier, the
wording that says Gardzan should stay or you know, should
be encouraged to stay in Gaza, and that if they
do leave, it must be voluntary, voluntary, and then must
(20:00):
be allowed to return as and when they want to.
Speaker 4 (20:03):
Language like that is important.
Speaker 10 (20:05):
And Trump also spoke about an eventual pathway being created
for Palestinian statehood.
Speaker 4 (20:12):
Again that language is.
Speaker 10 (20:14):
Very important for other Middle Eastern countries and obviously Palestinians themselves,
they wanted to see something like that. That's the kind
of language that is arguably, arguably amounst to a concession
on Nettinohu's part. And already, you know, there's been some
criticism within the country that you know, this is the
(20:35):
kind of language that could you know, increase pressure on
Israel to eventually accept a Palestinian state, which it does
not want to do at all. So there's you know,
there is, as Trump would say it, there's something for
both warring sides in this. It certainly is key that
(20:57):
you know, Turkey, Katar and other Middle East and states
are on board, and that's something that's been a change
in the last week. Trump met with those states in
New York on the sidelines of the UN General Assembly
last Tuesday, and it seemed to be a very constructive
meeting and much of the plan that was announced yesterday
or sort of published yesterday, came out of that meeting
(21:21):
with those states.
Speaker 2 (21:23):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (21:30):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 2 (21:36):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (21:42):
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 2 (21:51):
I'm Stephen Carroll. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg day Break Europe f
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