18 Burst results for "Liaison Committee"
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Romando. Bloomberg Talks. Subscribe today on Apple, Spotify and anywhere you get your podcasts. Google . Markets headlines and breaking news 24 hours a day at Bloomberg .com on Bloomberg Television and the Bloomberg Business App. This is a Bloomberg Business Flash. It's 8 .40 in London. I'm Stephen Carr. Let's update you on where markets are moving this hour. So European shares trading higher although not by very much. The stock 600 just up by two tenths of one percent. The FTSE 100 is flat. The CAC Caron in Paris up by ten. The DAX in Frankfurt just flat to the upside at the moment. While the FTSE move initially is up by a quarter of one percent. Investors turning their attention to risks for the economy and the prospects of restrictive further central bank moves who had that hawkish hold from the RBA earlier on as well. The Aussie dollar on the back of that up by a tenth of one percent against the dollar at 66 .82. The dollar itself a tenth weaker on the Bloomberg dollar spot index. Of course US markets closed today for trading but looking at oil prices they are moving higher morning this Brent crude up by eight tenths of one percent and WTI also up by nine tenths of course Brent crude running at seventy five dollars and twenty six cents a barrel. As well that is your Bloomberg radio business flash. Now let's turn to an interview focusing on events here in the UK we expect Thames water to be one of the topics that is being discussed later when the Prime Minister appears in front of the liaison committee the company holding talks with officials last week about contingency plans for temporary nationalization over worries about how it will service its debts of around fourteen billion pounds. As we discuss this we are joined now by Vince Cable who was business secretary from twenty ten to twenty fifteen and is now a professor in the School of Public Policy at the London School of Economics. Vince Cable good good morning to you thank you very much for being with us when you look at the dilemma that faces the government now and Thames water does the company need to be nationalized in your view well it's certainly one of the questions, one shouldn't rule it out on ideological grounds but obviously if a major utility with water supply simply becomes insolvent the water flowing I mean the ideal solution is that the private shareholders put in enough cash to keep the operating company but in order to do that they will need to be reassured that prices will be fixed in order to make it worth their while I mean the problem is the shareholders have now got the government over a barrel here and this goes back 70 years McQuarrie stripped out the company and you know really behaved quite appallingly but we're dealing with the situation as now it is and if the private shareholders can't be persuaded to come back in with enough cash nationalization their will be the only option available to the government it's not something they want because they will then take on the problems of public sector borrowing resulting from the takeover and the subsequent investment what went wrong that this got to this point with Thames water is this a failure of regulation yes and for the industry as a whole I mean I some people would say it was a failure of the privatization but if the privatization of being accompanied by sufficiently clear and effective regulation we may well have not got into this mess but regulation was very like touch was clearly not effective it enabled companies like Macquarie take to out vast dividends which were of course not the point of having a low risk utility activity and it's reduced the industry to not just Thames water to a very bad position yes there was a failure regulation but in a way of the you know the horses have bolted now there's not a great deal we can do to retrieve the situation. What does Ofwat need to given be greater powers? Is it that the regulator doesn't have the sufficient teeth to be able to intervene in this way? Well I think the powers are there but they haven't been used and in addition we have this phenomenon of regulatory capture that quite a lot of the regulators were migrating into the industry and understood the way around the various regulatory so requirements I'm not sure that it's a question of legal powers it's a question of the government using them but it's now a bit late I mean we've we've got to a situation where the industry as a whole not just Thames Water is in dire financial trouble in which there are demands for very large scale investments in order to improve the you know treatment of sewage the the most obvious case you know capacity for reservoirs and other things and in which they you know the arrangements don't enable the capital to to come in easily so there's a real dilemma I mean if the government wants private capital it's going to have to accept that you know prices are going to have to rise at a time when there's a cost of living crisis if the government takes on it's this itself then going to be lumbered with you know very large borrowing requirements which ultimately are competing with health and education and the other things that the government does. Bloomberg Intelligence also echoing what you were just mentioning there about the concern about other water companies the likes of Affinity, Anglian Southern due to a combination of factors but most notably their high proportion of debt debt that's linked to retail price inflation is this something that needs to be tackled at an industry wide level rather than looking at necessarily the individual and somewhat particular problems facing Thames Water? Well it does need to an industry view because there's a wide dispersion in the performance of the water companies and some of them have done reasonably
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"21 a .m. in the city of London I'm Caroline Hepker this is your Bloomberg radio business flash global shares this hour down a 10th of 1 % the rally pausing the Nikkei also dropping almost one full percentage point this morning the Hang Seng eking out a small gain the Hang Seng index up by 10th of 1 % remember US markets are closed for the Independence Day national holiday the RBA held its cash target rate 4 .1 % the Aussie dollar down this morning ASX 200 up four tenths of 1 % you've Australia got then rubbing up against higher US rates from the Fed of course in terms of European stock futures then those are a little bit softer this morning down barely a tenth of 1 % 5100 futures also dropping close to two tenths of 1 % but the big story is about yield curve inversion which is deepening between the two and ten -year US Treasury yields 111 basis points yesterday ended a shorter trading day in the US with a gap of about a hundred and eight and a half basis points for the two's tens so does it actually presage a recession US in the this classic barometer of recession risk that remains the big question really oil this morning is up up by half of 1 % Saudi Saudi Arabia and Russia curtailing supply again and the gold spot price is up two -tenths of 1 % $1 ,925 that is your Bloomberg radio business flash let's get to one of our key interviews Alex so the Milan headquarters communications firm SEC new gate has won a hundred million in new investment from the from Bahrain private equity firm invest Corp the PR and communications companies reminded delisted from the London stock exchange junior a market in March 2022 and this new transactions expected to be finalized in the second half of this year it's an interesting deal given that it's a space public relations that for long a time has been considered to be highly commoditized we miss a lot of players in that we have have seen quite a lot of deal making over the past few years not least with the likes of Finnsbury merging into various other WPP businesses and with one of their US peers so it'll be interesting dig how to in with SEC new gate group CEO Fiorente Taliabue I do hope I've not completely butchered your surname there my apologies what does the investment allow you to do thank you first of all the investment of Invesco will help to support our M &A strategy which is quite relevant and important as you know we have already a presence in 22 geographies around the world I'd like to increase our presence and our footprint in mainland Europe and in African region this together with a support for our organic growth are the two main reasons of this investment Fiorenzo Invesco then is now a majority the owner of the business how will that change the company do you think yes they have a majority their shares will be around a bit more than 50 % according to any we signed there was any change at the level of the governance of the group myself and going to to stay my place as a CEO of the group and the in the management team and for the management team for my main collaborator will be the same what is what is changed what is changing is that today we have a very important financial which partner can be which will be on our side in order to make our our presence on the I'll get stronger and more efficient. So you said this capsule is going to be driving your M &A strategy. Could you just like unpack that a little bit? Is it because there are lots of companies in the space that that are suffering right now so so In our pipeline over over over M &A strategy at the moment we are we are discussing with a decade of targets with of course different levels of negotiations, different stages of negotiations. Let's say that with five of these ten targets we are in an advanced stage of discussion and we hope to complete some of them at least three four of them by the end of this year. I'm speaking I'm speaking about targets, free targets in Europe, in the Scandinavian area and in central east Europe to complete our footprint in mainland Europe and the capital of targets in the APAC region especially in Japan. For this it will require a bit more of time and I think we we are going to complete the deal early next year. Okay Thank you so much for being with us. SEC Newgate Group's CEO joining us live there on Bloomberg Radio. So confirmation then interestingly that hundred million dollars of new investment from the Bahraini private equity firm Invescor into this communications global communications company does mean that they are majority owners but then Fiorenzo also talking about four fresh targets so or M &A in the comms PR world I think quite an interesting conversation. Yeah and interesting to actually name some of the geographies in that space but we're joined by Lizzie Burden now to dig into some of the BOE news. Yeah absolutely so a number of stories to think about when it comes to the UK. Lizzie good morning so first of all around the newest Bank of England member Meghan Green she's been warning that interest rates may actually settle at higher levels permanently in the UK. Yeah she's a bit of an unknown quantity she hasn't voted yet she only joins the monetary policy committee on the 5th of July but has been writing in the Financial Times as you say making some more hawkish noises. She warns that inflation could be persistent and that's because AI and green investment she says are going to boost growth and that will have an inflationary impact. So she says it would be a mistake for central bankers to take comfort in the notion that inflation and rates will automatically go back to the low levels we saw before the pandemic. Now this is in contrast with the governor Andrew Bailey her views on the neutral rate which of course is the level that neither tightens nor loosens policy. He says that it'll remain low. Clearly she thinks it'll have to be a bit higher and that there'll be a new normal. But she replaces the most selfish member of the monetary policy committee Silvana Tenreiro. So clearly regardless of how hawkish she'll be the balance of the committee will be more hawkish after that replacement. Yeah absolutely and inflation of course may be the one of issues that comes up when the prime minister Vichy Sunak is in front of the liaison committee today. lot A of pressure on him and this is just one aspect. Yeah I just want to point out there's a really interesting piece of research by Merg economics about greedflation. This issue that we keep on talking about in the context of supermarkets and banks and energy and telecoms and indeed the government has been putting pressure on those industries companies to claw back greedflation and protect the most vulnerable consumers. But our economists say that greedlation isn't really the problem even if businesses are hiking prices more than workers are grabbing pay rises because don't forget businesses also have higher costs. There's no single source of price pressure our economists say and that's why rate hikes blunt as they are slow as they are to take effect have been the most appropriate response. But as you say Rishi Surak is going to be in front of the parliamentary liaison committee later it's his thrice yearly grilling. I don't think it's going to be quite the box office spectacle that it was when Boris Johnson was in number 10 but it's always difficult to predict which topics the prime minister will have to face off because there is such a range of parliamentary inquiry. I do kind of expect that he'll have to face questions on Thames Water we've been talking about the potential organisation of Thames Water also there's been the court ruling over the Rwanda deportation plan that could potentially come up but I expect Rishis United to a very careful line so as not to annoy or anger anyone in his party before we go into the summer recess he's got three by -elections on the horizon don't forget. I certainly have not forgotten that. Thank you so much Lizzie Burden for talking us through both what's going on at the BOE and the He is on committee later. Yeah absolutely it can be quite a long bit of testimony from the Prime Minister so that's why Many topics may emerge but it's just after 7 .31 a .m. here in the city of London. Good morning I'm Caroline Hepker and I'm Alex Webb this is Bloomberg Daybreak Europe let's check on the markets this hour then topics down Now six -tenths of one percent in Asian trade it's been a mixed morning actually CSI 300 seeing some small gains, Air sex 200 in Australia up four tenths of one percent after the RBA stood power on rates. In terms US markets they are closed for the holiday so stock futures for Europe flat at the moment for the US stocks 50 ...a deeply inverted yield curve that remains
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Lawmakers for help as some Republicans grow skeptical of continued American support. Now the two presidents will hold a joint press conference in Washington, D.C. later. Here in the UK, the crisis in the health service is deepening 25,000 paramedics and ambulance crews are on strike for the first time in 30 years and HS buses are warning they can't guarantee the safety of patience while ministers say people should avoid risky activities. The prime minister says his priority is bringing down inflation. The best way to help them and to help everyone else in the country is for us to get a grip and reduce inflation as quickly as possible. And we need to make sure that the decisions that we make can bring about that outcome. Because if we get it wrong and we're still dealing with high inflation in the years time, that's not going to help anybody. I don't want to see that. I want the fee things get back to normal. That is Rishi sunak speaking to parliament's liaison committee yesterday about 600 members of the armed forces have been drafted in to drive ambulances during today's strike. In corporate news, Elon Musk says that heel run Twitter's software and servers teams once he's found someone to replace him as CEO, a source says that he had already embarked on the search for a new chief executive after losing his own poll asking whether he should step aside, Musk made the announcement in a tweet declaring he'll go once he hears he has found someone who is quote foolish enough to take the job. The bank of Japan has announced an unscheduled bond buying operation this morning is yields near to the Central Bank's new upper limit to BOJ shocked the markets yesterday with the move to widen its yield ban Columbia University professor Columbia University professor takatoshi Ito says it's a move towards exiting the bank's ultra dovish stance. He also denied this is not a step toward exit. And he's not preparing for any change in the amount of policy framework. That is probably not quite true. I think many private forecasters and also inside BOJ are catching up to the reality
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Anti aircraft missile battery to the country. And now the crisis here in the UK's health service is deepening as 25,000 paramedics and ambulance crews go on strike for the first time in 30 years today, NHS bosses are warning that they can't guarantee the safety of patients and ministers are saying that people have to avoid risky activities. The prime minister which is sunac is defending setting pay via an independent review body. Pay is obviously difficult and they exist to come to a sensible considered and fair view balancing all the competing interests about what reasonable and paid settlements are. And that's why the government accepted them in full across the board. So that was the prime minister. She soon asked speaking to parliament's liaison committee yesterday about 600 members of the armed forces have been drafted in to drive ambulances during the strikes coming up in just a moment. We're going to discuss this in greater detail along with public sector borrowing here in the UK, what the strike action means with our UK correspondent Lizzie burden and our Bloomberg opinion columnist Therese Raphael. Elon Musk has confirmed he will step down as the CEO of Twitter once he finds someone he says is foolish enough to take the job. This as U.S. regulators step up their investigation into the social media platform Bloomberg's ad Baxter reports. The Federal Trade Commission has interviewed two former senior executives of Twitter already regarding privacy and data security. Now practices is the issue and whether it's complying with a 2011 consent order since Elon Musk has taken over. The FTC has shown it is not afraid to levy hefty fines. It did find Facebook a record $5 billion over the Cambridge Analytica data scandal. This can't be welcome news from us who has fired many of his oversight team and attorneys. Must, by the way, says he will oversee the software and servers teams. In San Francisco, I'm Ed Baxter Bloomberg daybreak Europe. And now a U.S. committee has voted to release Donald Trump's tax returns, saying that the former president claimed tens of millions of dollars under dubious accounting, the ways and means committee pointed to questionable private jet expenses large unsubstantiated charitable deductions and payments to the former
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"To help them and to help everyone else in the country is for us to get a grip and reduce inflation as quickly as possible. And we need to make sure that the decisions that we make can bring about that outcome. Because if we get it wrong and we're still dealing with high inflation in a year's time, that's not going to help anybody. I don't want to see that. I want to see things get back to normal. Richie sinak was speaking to parliament's liaison committee yesterday about 600 members of the armed forces have been drafted into drive ambulances during today's strike. In corporate news, Elon Musk says that he'll von Twitter's software and servers teams once he's found someone to replace him as CEO, a source says that he has already embarked on the search for a new chief executive after losing his own poll are seen whether he should step aside. Musk made the announcement in a tweet in a tweet rather declaring that he'll go once he can find someone quote foolish enough to take the job. The bank of Japan has announced an unscheduled bond buying operation this morning as yields near the Central Bank's new upper limit, the BOJ shocked markets yesterday with its move to widen the yield band, Columbia University professor takatoshi Ito says it's a move towards exiting the bank's ultra dovish stance. He also denied this is not a step toward exit. And he's not preparing for any change in the amount of policy framework. That is probably not quite true. I think many private forecasters and also inside B of J are catching up to the reality that inflation rate above 2% may stay. ISO is one of the frontrunners to replace bank of Japan governor haruhiko kuroda and his tenure ends next April. We're seeing the ten year Japanese yield after that move by the bank of Japan now trading at 0.47% so close that upper bound of half a percent to two year yield back a negative although we did briefly move into positive territory for the first time since 2015 a little bit earlier. Okay, I mean, a European yields actually are heading a little bit lower. So Germany is at two 29, so the reaction at least today muted in European bond markets, becoming your way in just a moment. We're going to be speaking to Madison fuller who is global investment strategist at JPMorgan private man bank with a look at her favorite assets for 2023. This is Bloomberg. On the latest edition of the Bloomberg businessweek podcast, a conversation with Charles Lebanese, founder and CIO at valley works. I hear value works. I think value stocks should I associate you with value stocks or is that not necessarily your deal? I'd name the place value work, so I do believe I'm a value investor, but we find value in a lot of different places. And one thing that I've always shied away from is believing value is the bottom half of the valuation continuum. It's when you care about price and you're getting a good business at a good price at a discount to what it's worth today, that it's value. And there are a lot of classic growth stocks today that are trading at value prices. Name some names. Longest favorite for us is Qualcomm and other one that we love right now is Netflix. Those are two obviously classically growth stocks. Both of them are trading at very, very realistic value prices. That is so interesting. You know, Netflix is one of the dark horses recently. It's had a huge rally over the past couple of months. After being one of the worst performers in the first half of the year. So even so, it's still nowhere close to where it was at the beginning of the year. What do you, what's your read on this new advertising tier of subscriptions that it's offering? Well, you know, I even take a step back from investors reaction to that advertising tier. And think about how much people judge the stock being expensive or cheap relative to yesterday's prices. The fact that it's down from 600 to 300 are up to 302 hundred doesn't tell you about the size of its business or its earnings and where the share price is relative to that. And so what I think is really interesting about Netflix is that even up from 200 to 300, the multiple on earnings the multiple on cash flow is really
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Difficult and they exist to come to a sensible considered and fair view balancing all the competing interests about what reasonable and paid settlements are. And that's why the government accepted them in full across the board. That was the prime minister. She seemed not speaking to parliament's liaison committee yesterday about 600 members of the armed forces have been drafted in to drive ambulances during the strikes will have more on their story with our UK correspondent Lizzie Burton in just a moment. Now Elon Musk is confirmed that he will step down as CEO of Twitter once he finds someone he says is quote foolish enough to take the job. This as U.S. regulators step up their investigation into the social media platform with more on the story has been both Ed Baxter. The Federal Trade Commission has interviewed two former senior executives of Twitter already regarding privacy and data security. Now practices is the issue and whether it's complying with a 2011 consent order since Elon Musk has taken over. The FTC has shown it is not afraid to levy hefty fines. It did find Facebook a record $5 billion over the Cambridge Analytica data scandal. This can't be welcome news from us who has fired many of his oversight team and attorneys. Musk, by the way, says he will oversee the software and servers teams. In San Francisco, I met Baxter Bloomberg daybreak Europe. Staying in the U.S., the highest committee is voted to release Donald Trump's tax returns, bringing a three year legal saga over the former president's financial records to an end. Democrat committee chairman Richard Neal hit back at claims that this was a partisan attack. This was never about being punitive. It was never about being malicious. I never over promised. I never built an unreasonable level of expectation. Neil out of the tax authorities failed to sufficiently audit Trump while he was president, the returns that will be made public in a few days time. The bank of Japan announced it on scheduled bond buying operation this morning as yields near the Central Bank's new upper limit, the BOJ shocked markets yesterday with its move to widen its yields banned. Muhammad el Arian though says that it is a smart move. There's no doubt in my mind that this is the step that was normalization. The good news for them is I think they can control the process. That's actually good news for global markets because it doesn't force selling by Japanese institutions. However, over time, even this approach becomes unsustainable. Muhammad el Arians comments, well, they were echoed by the International Monetary Fund which called the BOJ's actions a sensible step. The change is pushed Japan two year yields are above zero for the first time since 2015, bringing an end to the global era of negative yields. Okay, so those are our top stories this morning, of course, we're talking so much about the strikes that are happening today, but train drivers announcing another day of strikes in January, so now they'll be 5 consecutive days of strikes in the first week of the new year. That's as the RMT and ass left are holding fresh rounds of industrial action. I'm also keeping an eye interestingly on there is has been a train strike announced causing most consternation in France for this weekend, canceling a third of trains over the holiday weekend under train company in France and they're going to reimburse people's council tickets at 200% to their face value to try and compensate for the fact that people are having their trains canceled at the last minute due to a strike there. So interesting to see how these things are being handled in other places as well, of course that is a state owned company that's canceling those trains as well. So a slightly different situation on the railways there in France. Yeah, although the difficulties of dealing with strike action and satisfying the demands for pay were really only underlined today by the borrowing figures 22 billion pounds of public sector net boring. This is a huge sum and it just shows how difficult a position the government is in if it wants to try to help striking nurses. Yeah, we'll get into the detail of those figures with Lizzie Burton in a moment but first let's turn to what's making headlines in the newspaper as this morning, of course it's the ambulance strike being features on all the front pages, the telegraph headline, comments from the health secretary Steve Barkley saying unions have made a conscious choice to inflict harm on patients. As we're looking through the details of this, what has Steve Barkley tell the telegraph? Stephen, good morning to you and your absolutely right. All the front pages today going heavy on the strike action here in the UK by ambulance unions and the health secretary Steve Barclay says ambulance unions have made a conscious choice to inflict harm on patients by going ahead with these walkouts, writing for the telegraph. He said the refusal of unions who agreed to provide cover for emergency calls and a lack of clarity about which cases will get a response had made contingency planning almost impossible for the government. Now today, 25,000 paramedics and ambulance crews are taking part in the first national strike they've had in more than 30 years. We do know that about 600 members on the armed forces have been drafted into help, but it's also important to say ambulance staff are walking out in England and Wales over pay and conditions several trusts are ready declared critical incidences before the strike even happened today. I mean, I just wonder whether attacking doctors and nurses and ambulance workers in this way is going to work. It doesn't seem to be in the polling. There's a great deal of sympathy for health professionals. Having said that, there is another major issue, and that's the energy crisis this winter, the FT has a story about this Jeremy hunt delaying the new support
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Help them and to help everyone else in the country is for us to get a grip and reduce inflation as quickly as possible. And we need to make sure that the decisions that we make can bring about that outcome. Because if we get it wrong and we're still dealing with high inflation in the years time, that's not going to help anybody. I don't want to see that. I want the figures get back to normal. That was prime minister Vichy sunac speaking to parliament's liaison committee yesterday about 600 members of the armed forces have been drafted to drive ambulances during the strikes. Ukraine's president Vladimir zelensky is traveling to Washington today to meet President Biden and address the U.S. Congress. It's his first trip outside of Ukraine since the Russian invasion began in February. President Biden will announce nearly $2 billion in extra assistance for Kyiv during the visit, as well as moves to deliver a new anti aircraft missile battery to the country. The visit will give zelensky the chance to personally appeal to U.S. lawmakers for continued help as some Republicans grow skeptical of continued American support the two presidents will hold a joint press conference in Washington later. Now Elon Musk has said that he'll von Twitter's software and servers teams once he's found someone to replace him as CEO, a source says that he has already embarked on the search for a new chief executive after losing his own straw poll asking whether he should step aside. Musk made the announcement in a Twitter declaration that he'll go once he can find someone foolish enough to take on the job. The bank of Japan announced an unscheduled bond buying operation this morning as yields neared the Central Bank's new upper limit, the BOJ shocking markets yesterday with its move to widen the yield band, Columbia University professor takatoshi Ito says it's a move towards exiting the bank's ultra dovish stance. This is not a step toward exit. And he's not preparing for any change in the amount of policy framework. That is probably not quite true. I think many private forecasters and also inside the OJ are catching up to the reality that inflation rate above 2% may stay. Isaiah was one of the front ones to replace governor haruka Corona when his tenure ends in April, the change that had briefly pushed Japan's two year yield above zero for the first time for 2015. Now coming up in the next part of daybreak, Europe, is it what markets always wanted for Christmas? A
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"And pay settlements are. And that's why the government accepted them in full across the board. That was the prime minister Richardson act speaking to parliament's liaison committee yesterday about 600 members of the armed forces have been drafted into drive ambulances during today's strike. We'll have more on this story in a moment with our UK correspondent Lizzie burden. Elon Musk is confirmed that he will step down as CEO of Twitter once he finds someone he says is foolish enough to take the job. This is U.S. regulators step up their investigation into the social media platform, Bloomberg's head backs to reports. The Federal Trade Commission has interviewed two former senior executives of Twitter already regarding privacy and data security. Now practices is the issue and whether it's complying with a 2011 consent order since Elon Musk has taken over. The FTC has shown it is not afraid to levy hefty fines. It did find Facebook a record $5 billion over the Cambridge Analytica data scandal. This can't be welcome news from us who has fired many of his oversight team and attorneys. Musk, by the way, says he will oversee the software and servers teams. In San Francisco, I met Baxter Bloomberg daybreak Europe. Saying in the U.S., the highest committee has voted to release Donald Trump's tax returns, bringing a three year legal saga over the former president's financial records to an end. Democrat committee chairman Richard Neal hit back at claims that this was a partisan attack. This was never about being punitive. It was never about being malicious. I never over promised. I never built an unreasonable level of expectation. Neil out of the tax authorities failed to sufficiently audit Trump while he was president, the returns will be made public in a few days time. And now the bank of Japan announced an unscheduled bond buying operation this morning as he yields near the Central Bank's new upper limit. The BOJ shock markets yesterday with its move to widen its yield band, Bloomberg opinion columnist Muhammad el Arian says that it is a smart move. There's no doubt in my mind that this is the step that was normalization. The good news for them is I think that can control the process. That's actually good news for global markets because it doesn't force selling by Japanese institutions. However, over time, even this approach becomes unsustainable. So that was Bloomberg's Muhammad el Arian his comments were echoed by the International Monetary Fund who called the move a sensible step. The change has pushed to Japan's two year yield above zero for the first time since 2015, albeit briefly, bringing an end to the global era of negative yields. Those are our top stories this morning and of course lots of focus here in the UK today on the ambulance strike just the latest ministering of strikes effects on the health service and the advice for ministers. I mean, frankly, it would be funny if it wasn't so serious that people should avoid risky activity like drinking too much or essentially because there won't be an ambulance for you if you know what needs to be called. Yeah, no, I know it's sort of it's kind of beggar's belief. It's pretty grim stuff. I mean, the list also of activities that you're not meant to sort of take part in is quite long kind of sporting activities and so on. Effectively just sort of look after yourselves because the ambulances might not be there for you. I mean, it's utterly grim, especially when you get the situation now where nurses are giving the government just a couple of days to get on with it to negotiate overpay or they're going to announce more strike action in January, but the government's in this impossible situation, the budget deficit has absolutely soared we just had the figures out this morning. The budget deficit excluding banking groups obviously soars to 22 billion pounds in November. Yeah, and this is a new opinion poll from yougo showing that two thirds of the public support the nurses strike action and 63% back today's workout by paramedics more on the strike story in a moment, but let's actually turn to the newspapers, which is also looking at this one story, which is dominating front pages here, the telegraph headline unions have made a conscious choice to inflict harm on patients, says health secretary Bloomberg's the Anne garon's been looking through the details of this Leon. What is the telegraph and Steve Barkley telling us? Stephen, good morning to you. So for you, have a look at the front pages of this morning's newspapers today, they are just full of information about the strike action and you're talking about risky behavior there. I just want to pick up on something the sun is headlining. Don't use your car. Don't go running. Don't play sport. Don't get drunk and don't have fun. As you did say, a warning to make sure that everybody keeps activity safe and they really look after themselves while these strikes are going ahead. Now the health secretary Steve Barkley says ambulance unions have made a conscious choice to inflict harm on patients by going ahead with the strike action we're seeing, writing for the telegraph. He said there refusal of unions to agree to provide cover for emergency calls and a lack of clarity about which cases will get a response had made contingency planning for the government, almost impossible, and as we know, today around 25,000 paramedics and ambulance crews are going to be taking part in these national strikes for the first time in 30 years, and we're going to see hundreds of people from the armed forces they've been called in by the government as back up. They're going to be driving the ambulances during the strikes that they'll not be able to break a red light or turn on blue lights when driving so they can't carry out any clinical tasks, which is concerning NHS chiefs because that's why they're calling on us to all be safe. And we must also remember that ambulance staff are walking out in England and Wales over pay and conditions and a lot of opinion polls and public feelings still has sympathy, especially when it comes to the health service for all they did during the COVID pandemic. It's certainly the government's message is not cutting through on that front right now at least. The Financial Times, though, has Jeremy hunt a delaying
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Help them and to help everyone else in the country is for us to get a grip and reduce inflation as quickly as possible. And we need to make sure that the decisions that we make can bring about that outcome. Because if we get it wrong and we're still dealing with high inflation in the years time, that's not going to help anybody. I don't want to see that. I want to see things get back to normal. That was the prime minister speaking to parliament's liaison committee yesterday around 600 members of the armed forces have been drafted to drive ambulances during today's strike. And now Ukraine's president volodymyr zelensky is traveling to Washington today to meet with president Joe Biden and to address Congress, he's confirmed this with a post on Twitter. It will be his first trip outside of Ukraine since Russia invaded in February during his visit zelensky will ask Biden and U.S. lawmakers for shipments of additional weapons to Ukraine as some Republicans grow skeptical of continued U.S. support. It comes as Congress is finalizing a new spending bill, which includes $45 billion of aid for Kyiv and we learned earlier this morning that Biden and zelensky will hold a joint press conference on Wednesday they'll discuss sanctions and export controls, things like the economy and energy and humanitarian aid. Elon Musk says he'll run Twitter's software and server teams once he's found someone to replace him as CEO, a source says he's already embarked on the search for a new chief executive after losing his own poll asking whether he should step aside. Musk made the announcement in a tweet declaring he'll go once he can find someone quote foolish enough to take the job. Now the bank of Japan announced it on schedule of Bon buying operation this morning as yields neared the Central Bank's new upper limit, the BOJ shocked markets yesterday, with its move to widen its yield band, the Columbia University professor taka toshi Ito says that it is a move towards exiting ultra dovish policy. This is not a step toward exit. And he's not preparing for any change in the amount of policy framework. That is probably not quite true. I think many private forecasters and also inside B of J are catching up to the reality that inflation rate above 2% may stay. Well, professor Ito is one of the frontrunners to replace governor haruhiko kuroda when his tenure ends in April. The change has pushed Japanese two year yields above zero for the first time since 2015 briefly, bringing an end to the global era of negative yields. Those are our top stories this morning, of course, with plenty to unpack when it comes to the market reaction from that Japan story, the yen sin of a 132 to the dollars are holding on to much of that strength that we saw yesterday. And we're heading from Valerie Titan earlier. I mean, 21 years of quantitative easing from the BOJ so it really is a huge change that we're starting to see from Japan Central Bank of course ahead of the changing of the guard. They're set to happen in April next year when haruka Corona is due to be replaced as governor. So plenty to discuss with kit jukes, chief FX trashers at associated general who will be talking about the moves in the end and the outlook for currencies in 2023. With us for that market's conversation, this is Bloomberg. On the latest edition of the balance of power podcast, a conversation with former Homeland Security secretary Janet Napolitano, about the crisis on the southern border and what needs to be done. Well, first of all, there needs to be a logistical plan for how to handle all of these potential asylum, there needs to be a plan for shelter along the border, a plan to keep families together, where that's possible. And a plan to move people away from the border to other places in the United States where they can be reunited with family members while they wait for their asylum hearings. So do we have the person power to do that? Because as a matter of border guards as well as hearing officers and as you say, a lot of facilities to house these people. Right. Good question. Hopefully the Department of Homeland Security has been staffing up, they may need to detail people from other areas of the department to the border. I think the important thing is to reassure the American people that the border is being protected, that there is a plan to handle all these potential asylees. But I'll tell you, one of the problems that this illustrates is just the fact that our whole asylum system and immigration system as a whole needs reform. You know, I think that Congress has been stuck on this for far too long. The vast majority are not criminals. They are people simply seeking a safe and secure place to live. But there is cartel
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"The new scheme and he's also waiting approval from the prime minister Rishi sunak. That's what he said. And as you mentioned, the FT reports on the Chancellor Jeremy had been accused of leaving businesses facing a really anxious and uncertain Christmas after breaking a promise to set out a new energy support package before the end of the year. Now the Chancellor said he would give details on the scheme to run from April next year by December the 31st, but on Tuesday he told MPs we will be bringing forward an appropriate package early next year, so another delay. And this is after the former prime minister Liz truss did announce a scheme to subsidize the price cap on companies, electricity and gas bills, but those arrangements expire at the end of March. And the British chambers of commerce has really criticizing this delay of the government's announcement, claiming some companies may now be forced to prepare potential redundancies because they just don't know if they're going to get support, and if they bills are going to increase. Yeah. One more story, Leon that you've picked out from the paper is in the times talking about the coronation, some good news for a change. They say it's going to restore the UK's crown in the eyes of the world. That's a big promise. This is super positive, isn't it? And yes, Rishi sunak says the king's coronation will showcase the best of Britain to the world after a year of global mockery. At a cabinet meeting yesterday, ministers discuss planning for the event in May with a higher turnout of foreign dignitaries expected than that was at the queen's funeral. And for lots of people, this is what they'll be celebrating pubs of bars are likely to open for an extra two hours for the coronation weekend, so there we are, the government's getting a consultation on the licensing. But more time in the pub probably an extra bank holiday. There we are. While the ambulances are on strike, okay, Leanne, thank you very much for that look through the papers this morning. Thank you for bringing us something positive to look forward to. Let's get back though to the difficult situation today, more on those strikes now, which has seen act telling MPs yesterday there is no money to hand out the government's priorities to carbon inflation. His dance risks angering voters though on causing further havoc due to the ongoing wave of strikes or UK correspondent Lizzie burden is with us now for more good morning to you, Lizzie. Why is registering a refusing to commit to bigger pay increases for the NHS workers that are on strike? Well, Stephen, as you say, we heard from Rishi sunak in his own words yesterday at the parliamentary liaison committee, and it was the same script as he used the entire summer in the leadership campaign, inflation is the enemy that makes everyone poorer, so he's going to prioritise curbing it and giving into the unions would only add to it. That's what he says. And of course, this was the same committee before which Boris Johnson was testifying when Rishi sunak quit his government and that triggered the mass exodus of MPs and eventually Boris Johnson's downfall. Now, the governments argument is it's pay proposals reflect the recommendations of the independent pay review bodies, but the unions say that those bodies aren't fully independent because they operate within the parameters set by the government. So the nurses have given Rishi sunak two days to negotiate before they announce more strike dates for January. Okay, in terms of the economic argument, does it stack up? We spend about a 180 billion pounds per year in terms of the NHS budget. So does the economic argument work out? Well, we get new data on public borrowing at 7 a.m., but economists point out that while paying public sector workers health workers more would increase public borrowing or take away funding from frontline services. These people also pay the 80, they also pay income tax, and in the case of nurses, unlike rail workers, the NHS isn't going to ramp up prices in response to a pay rise, so it isn't a wage price spiral. This is an argument that's made by torsten bell at the boss of the resolution foundation think tank in the Financial Times today. An interestingly, I'm hearing that divisions are growing in Whitehall between the health and transport departments on the one hand who want to settle and the treasury which is resistant to opening up the coffers. So Rishi sunak, if you'll forgive the pun really does need to strike a balance here. What about the politics of this and trying to looking at the terrible poll ratings that Conservative Party has? This isn't going to help. No, you're right. And it isn't just an economic argument. It's a political one and spreadsheet Rishi hasn't always had the best political antennae. If these strikes continue, they could define the next election. Remember in 1974 it was all about the strikes, the conservatives asked who governs and the country said, not you. So it was always going to be an economic election about the cost of living crisis, but because you've got these mass strikes, it could feel more like the 1970s, even if, as I've said before, union memberships lower now, this isn't a price, a wage price spiral is a price wage spiral, but in terms of the impact on Rishi sunak in the polls, there is a sense that he needs to act tough because the Labor Party is portraying him as weak. He's gambling that public opinion is going to turn on the strikers, the more people are directly disrupted, but so far, opinion polls do suggest that there is support for better pay for nurses because remember we stood outside our doors clapping for them, filled thy work during the pandemic. Absolutely. Thank you so much for that analysis our UK correspondent Lizzie Burton there on the difficulties of the strike action and what the government does about it. Let's bring you up to speed, though, with a few more of our top stories been based Leigh Anne guerin's back good morning Leigh Anne. Caroline, good morning to you. And thank you. Elon Musk has confirmed he will step down as the CEO of Twitter once he finds someone he said as foolish enough to take the job. This says U.S. regulators step up their investigation into the social media platform, Musk Gloucester straw poll he posted on the social media site that asked whether he should relinquish his role as the head of the company. Now mergers and acquisitions plunged by 30% this year as stubbornly high inflation soaring borrowing costs and geopolitical uncertainty hindered deal making around the world. Companies and our $3.5 trillion of deals this year, according to data compiled by Bloomberg, although the year started off on a high note when Microsoft agreed to buy video game publisher Activision Blizzard for $69 trillion in the biggest deal since 2019, sentiment has quickly fizzled and China has narrowed the way it defines a death due to COVID instead of counting COVID deaths as anyone who dies while COVID positive. China will only include an official virus death those who tested positive for COVID and die of a respiratory failure. There has been speculation that China's extremely low official death toll is hindering the true picture after Beijing abruptly drops strict pandemic measures this month. Global news 24 hours a day on air and on Bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries and neon garands, this is
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"And to help everyone else in the country is for us to get a grip and reduce inflation as quickly as possible. And we need to make sure that the decisions that we make can bring about that outcome. Because if we get it wrong and we're still dealing with high inflation in the years time, that's not going to help anybody. I don't want to see that. I want to see things get back to normal. That was actually seen at speaking to parliament's liaison committee yesterday about their efforts to tackle inflation in the UK about 600 members of the armed forces have been drafted in to drive ambulances during the strikes full of more details on this story in just a moment with our UK correspondent Lizzie Burton. Now, Elon Musk has confirmed that he will step down as the CEO of Twitter once he finds someone he says is foolish enough to take the job. This is U.S. regulators step up their investigation into the social media platform, his Bloomberg's Ed Baxter. The Federal Trade Commission has interviewed two former senior executives of Twitter already regarding privacy and data security. Now practices is the issue and whether it's complying with a 2011 consent order since Elon Musk has taken over. The FTC has shown it is not afraid to levy hefty fines. It did find Facebook a record $5 billion over the Cambridge Analytica data scandal. This can't be welcome news from us who has fired many of his oversight team and attorneys. Must, by the way, says he will oversee the software and service teams. In San Francisco, I met Baxter Bloomberg daybreak Europe. Ukraine's president Vladimir zelensky is traveling to Washington today to meet president Joe Biden and address Congress. It will be his first visit outside of Ukraine since Russia invaded in February during his visit zelensky will ask Biden and U.S. lawmakers for shipments of additional weapons to Ukraine as some Republicans grow skeptical of continued American support. It comes as Congress's finalizing a new spending bill which includes 45, which includes more aid for Ukraine. We're just hearing this morning that President Biden is set to an answer to Ukraine security package worth nearly $2 billion. The two presidents expected to discuss energy, the economy on humanitarian aid during this visit and there will be a joint press conference later in Washington too. Okay, that's interesting all fresh details that we're getting just now. Meanwhile, a House committee has voted to release Donald Trump's tax returns, bringing a three year legal saga over the former president's financial records to an end. Democrats committee chairman Richard Neal hit back, though it claims that this is a partisan attack. This was never about being punitive. It was never about being malicious. I never over promised. I never built an unreasonable level of expectation. Now, Neil added that the tax authorities failed to sufficiently audit the former president, whilst he was in office the returns from Donald Trump will be made public in a few days. The bank of Japan has announced an unscheduled bound buying operation this morning is yields near the Central Bank's new upper limit, the BOJ shocks markets yesterday with its move to widen the yield band Bloomberg opinion columnist Muhammad Ali and says it's a smart move. There's no doubt in my mind that this is the step that was normalization. The good news for them is I think they can control the process. That's actually good news for global markets because it doesn't force selling by Japanese institutions. However, over time, even this approach becomes unsustainable. Muhammad Ali's comments were echoed by the International Monetary Fund which called the move a sensible step, the change has pushed Japan's two year yields briefly above zero for the first time since 2015 signaling an end to the global era of negative yields that has just dipped back below that level though in the past while. Yeah, absolutely. We're going to talk about the fallout from the bank of Japan's decision and the bomb buying action this morning with our TV markets reporter Valerie titel in just a moment. So stay with us. But also, Stephen, don't go out to the pub, don't drink too much. Don't do anything hazardous. Why not? Because we're told if you get yourself into trouble, there won't be an ambulance there for you. Strike action in the UK is having real impact. Really serious warnings coming from ministers. Although much of that advice might sound quite sensible and adorable day today, it's more relevant than ever as there is this real fear that the services will be overwhelmed because of that strike action today 25,000 people walking out the military been drafted as we know but only when you're talking about 756 hundred drivers and a 150 support staff, although others are on standby too, but certainly will be a skeleton service compared to what's usually available at services that were already under severe pressure there were high alert levels and it issued in many of the ambulance services yesterday because of a massive demand for their services too, so really difficult situation out there for the health service today. And the pressure is being ramped up because there's been a final plea from the nurses unions for the government to negotiate their preparing to announce more strike dates for January. So we're going to give you more details about that. But also I noticed that business confidence amongst the British firms, it did actually manage to go up just a little bit according to lloyds bank and their latest survey in December. So but then of course it was at a very low ebb but at least business is feeling a little bit more optimistic. Yeah, a little bit of a turn, perhaps at that end of year, rush as well. So the highest reading since July, and that survey from lloyds, let's get to the newspapers this morning, the ambulance strike on the front pages today, the telegraph headline, unions have made a conscious choice to inflict harm on patients that's according to the health secretary Liang garand has been looking through today's paper as for us the angered morning to you what is Steve Barkley saying in the telegraph. Stephen, good morning to you, and I think Caroline in you outlined things very well just one second ago and the house secretary Steve Barclay has been writing in the telegraph as you said and he says ambulance unions have made a conscious choice to inflict harm on patients by going ahead with strikes, writing in the newspaper he also said there refusal of unions to agree to provide cover for emergency calls and a lack of clarity about which cases will get a response had made contingency planning almost impossible. Today, around 25,000 paramedics and ambulance crews are taking part in this first national strike for more than 30 years, about 600 members of the armed forces have been drafted in to drive ambulances during the strikes, but they will not be able to break red lights or turn on blue lights when driving and can not carry out clinical tasks. This is according to the newspaper, and it says the impact of today's strikes is expected to be significantly greater than that of the industrial action by nurses, which has seen so much pressure piled on the NHS as tens of thousands of appointments and operations are canceled and ambulance staff are walking out in England and Wales today over pay and conditions. And as you said, Steven, several trust across the country, including right here in London, have already declared critical incidences, and that was even before the ambulance strikes began today. Okay, meanwhile, the Financial Times has the headline that Jeremy hunt is to delay the new energy support package for UK businesses. Why? Well, Caroline, why he says he needs more time to have a look at the design of
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"It were. So Boris Johnson may be about to go now. Yeah, I just would caution, of course, that we've been at this .2 or three times before in the last three days, like when javid and soon accurate on Tuesday night, we were like, that's it. Oh my goodness, he's gone, and then he come on in on ecommerce, but then yesterday we thought you quit late afternoon, any climb on any clang on. And then this morning, they've had their Downing Street meeting. They have a daily meeting about 80 clock in the morning. And presumably that meeting, that's what's been discussed. And now, of course, we're a massive role on lookout for the lectern, the lecter moment when it comes out to Downing Street and they put up And they'll be able to further number ten. Yeah, shiny black door. This whole week has been historic, of course, but that moment would encapsulate the history of this moment. It is a redhead now across the terminal kitty Boris Johnson, let us know if you need to jump off to follow this story. Boris Johnson plans to resign as British prime minister that is a redhead on the Bloomberg terminal remarkable. There it is. Boris Johnson plans to resign as British prime minister, the breaking point then it seems for the leader of the UK. Let's just get your reaction kitty before you need to run off and follow up on this story. Yeah. Well, I mean, it's the end of an era, isn't it? And. I don't really know what to say. We thought he was going on. He thought he would cling on. And two days or three days of constant sort of resignations. And it looks like it's finally happening. Yeah, it's sort of I'm terribly sorry to be said distracted. I think I'm going to have to go because I need to, I need to. Great for you. Good stuff. Right, live as it is happening here in the UK. So Boris Johnson, the man who managed to win the Conservative Party an enormous 80 seat majority only two and a half years ago, the man who delivered Brexit, the man who delivered a vaccine for Britain in a timely manner. Despite all of the deaths from COVID-19 in the UK has been brought down by essentially a series of scandals, finally ending with a last, well, a sexual misconduct scandal with one of his own MPs, but the weight of resignation simply too much so breaking on the Bloomberg terminal this money as Boris Johnson. At every point there was a new Rubicon and we were asking whether he was going to cross it, whether he would be able to sustain himself. And you get to point after point scandal after scandal and he's always managed to continue and survive, but now the curtains have closed on the premiership of Boris Johnson. As you say, an election winner in 2019, but the questions have been there from the very beginning. Is this a man competent enough to pursue policy is a serious enough to govern this country? Does he have the moral fiber and certitude to govern given all the question marks? We know about his long history with his generous interpretation of the truth. Let's put that out there. Those questions have been there from the beginning. They have been crystallized now, and this is the end of the premiership of Boris forced out by his own party and not the opposition. And I think that perhaps one of the pivotal points really must have been yesterday where the prime minister was in front of the liaison committee and I was listening in my car yesterday afternoon to the radio as he was hammered again and again about whether he told the truth about how much he knew and when and I think that was perhaps a turning point because a lot of people had thought that perhaps the prime minister would be able to keep going. He looked he looked worn down. He fumbled, he mumbled, he didn't have clear answers, and he kept coming back to the point saying, look, we want to govern we want to push through our gender the problem is that people around him are meant to be working on the policy and the agenda have all turned around to him now. Not all of them, but the big players, many of the big players are turning around him and told him you have to step down. We're waiting, of course, for the press conference from Boris Johnson outside Downing Street, the podium we expect him of course to stand there and deliver that resignation, but it has been confirmed now by our own reporting that the prime minister of the United Kingdom will be stepping down. Okay, and is this now becoming a pattern for Conservative Party leaders, one thinks back to a 2016 the shock resignation of David Cameron at 7 a.m. in the morning. Theresa May, again, effectively brought down by her own MPs because of the wrangling around Brexit. And now another conservative prime minister, not managing to fulfill the whole term, but being brought down. I think also Tim durand, Eddie van der waal pointed this out to me this morning that perhaps the best chart of the day in Bloomberg Eddie van der belt view this morning was from Tim Duran from the institute for government in which he compares the number of resignations for each of the past prime ministers, so this is Boris Johnson versus Cameron versus may versus Blair versus major, you just have to look at that to see that Johnson's number of resignations having really held the party together for a long time, then it fell off a cliff in the last 24 hours. And the question now will focus on not just what we hear from Boris Johnson, but then in the days and weeks ahead, does this Conservative Party that remains in government, of course, has to reform the cabinet reform the government, who is going to take over from Boris Johnson, who are going to put their which members of the cabinet which ministers and which MPs are going to put their hats in the ring to run for prime minister leadership of the Conservative Party, prime minister of the United Kingdom, and how her his team, the Conservative Party, hoping to reset if they can on the back of this and what were the opposition party, the Labor Party do to try and take advantage of the vulnerability now across this government Conservative Party as they reposition potentially for an election that has to come by 2024 at some point, potentially could come earlier. This as we watch Sterling now actually shooting up and so we had seen weakness on the political instability that we've seen in the last couple of days, but the pound hits one spot one 9 6 9 so actually up three tenths of 1%, perhaps this injects a little bit more certainty, although of course the leadership race does look quite wide open in terms of at least half a dozen, if not more names, Liz trust, Jeremy hunt, Vichy sunak, Sajid javid, these are all ministers and former ministers and there are plenty of others too who potentially could be in the running, having said that you have the summer recess that takes place and then perhaps a reset in September when you get the party conference season and so that potentially is the sort of tentpole big moment that a new prime minister could address. And to underscore the importance and just the historical moment that this is in which this is occurring at a time of course of record high inflation inflation that we haven't seen for four decades of a major war the first major war in Europe since the Second World War at least the largest major war in Europe since the Second World War. All these crises, the post Brexit fallout, of course, that the UK continues to struggle with. All of these crisis on the
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Barr with more on what's going on around the world. Michael good morning. Good morning, Karen, at least 7 people are now dead after Monday's mass shooting and a Chicago area 4th of July parade with over two dozen others hospitalized, the suspect now faces 7 charges of first degree murder. Former Trump attorney, Rudy Giuliani, senator Lindsey Graham and 5 others have been called to testify before a special grand jury in Atlanta. It is part of an investigation into alleged attempts by former president Trump and his supporters to change the result of the 2020 election in Georgia. In baseball, the Yankees and mets lost the nationals Red Sox and giants also lost the Orioles and a's one. Global news, 24 hours a day on air and on Bloomberg quicktake, powered by more than 2700 journalists and analysts and more than a 120 countries. Michael Barr and this is Bloomberg, John. Michael, thank you, coming up on 5 20 on Wall Street where line for the Bloomberg interactive broker studios this is Bloomberg daybreak. The UK prime minister seems to be hanging by a thread this morning and her high profile resignations of several members of his government and let's head to number 10 Downing Street now. Bloomberg's Lizzie Borden there with more on Boris Johnson and Lizzie Burton, Boris Johnson, if nothing else, is a survivor. How precarious is his position this morning? Yes, John, on the cover of the UK newspaper this morning. You've got them just describing his situation is on the brink and another refers to him as the greased piglet. Remember that moniker that he manages to vibe is situation that historically put his predecessors predecessors in the so much pressure that they resigned. Well, it doesn't look likely that he will do that. Last night, his health secretary Sajid javid, who is also a former Chancellor and Chancellor Rishi sunak quit. They said they couldn't handle having to stand up in public and defend his handling of the Chris pincher affair, this MP who was alleged to have been involved in sexual misconduct but was then rehired into the government as deputy chief whip. Both of resignation letters going hard with the venomous language about Johnson's integrity. And yet overnight, we've had even more junior resignations, even in the past few minutes. So our reporter, Alex Wickham, is this morning reporting that Johnson's on red alert for signs of a coordinated platform from his ministers to bring him down because if 6 or 8 of the cabinet quit, it would leave him struggling even to form a cabinet. Yeah. Are they an act of conscience or are these people after his job? Well, it's not a David and Rishi sunak have thought to have leadership ambitions. It's hard to have it has stood before. And they're going to be even more dangerous if they're on the back benches. They'll be able to more easily organize other MPs around them. Rishi sunak and his resignation letters said that he accepts that this may be his last ministerial position, but will perhaps he'll have a position in his own government who knows. But it wasn't all about this pest minster as it's called scandal. But at Rishi sunak, it was also about Johnson's handling of the post COVID economic recovery. He has said that he had to take difficult decisions if something's too good to be true, it probably is. He said his approach was fundamentally different from Johnson on the economy. So clearly he couldn't get on board with the fiscal boosterism that John sir Johnson wanted of him. Explain to us what the prime minister faces now with the there's a Q&A where there's a question session in parliament and explain to us also what the liaison committee is. Yes, so first of all, we'll have prime minister's questions weekly session where Johnson's first of all grilled by the leader of the opposition Keir Starmer and then other MPs in the chamber. But in previous weeks, kissama seemed to have missed an open goal. So because too much on policy rather than personality, when Boris Johnson has been at his weakest, then Johnson faces more questions from the liaison committee. That's the head of all the parliamentary select committees. So he'll be getting questions from all different angles and it will be a very tough crowd to please. Lizzie, if Boris Johnson goes, is that it for the conservative government in the UK? How does that work? Well, it's all a matter of process. So you could resign, but as I say, that looks highly unlikely. Another option would be for the 1922 committee of conservative back ventures to change its rules. So that will currently, Johnson has a year's grace period after his confidence boot that he just narrowly won. Until there can be another confidence vote that could take him out of leadership. They could reduce the grace period to less than a year. But lots of MPs will be worried that that could create a dangerous precedent for future prime ministers by making it impossible for them to govern if they constantly face a vote that's around the corner. Other MPs will be saying, is there really a viable replacement for Boris Johnson at the moment? And then if there is someone taking over from Johnson, will they even really have a mandate to go given that Johnson had this landslide election victory in 2019 and they would have to wait to get their own mandate at a general election. Lizzie always a pleasure appreciated Bloomberg's Lizzie birden outside number 10 Downing Street
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Making a feature today in today's London rush too in angel there. Thank you for that. We make no apologies for mentioning again what a busy day it's going to be in Westminster because it is going to be something to behold and something to watch out for. Let's get to a look at some of the events that we're following today with Leigh Anne gerrans, Leanne. Anna, thank you so much, so some things that we're looking at right here in Bloomberg is at 10 a.m. UK time we'll have all the latest retail sales data from the Euro area. That's followed by islands unemployment rate at 11 a.m. UK time and then at midday. Boris Johnson faces prime minister's questions and then what could be a grueling session of parliament's liaison committee where lawmakers will probe him on integrity and politics and the rule of law. Then from midday onwards we'll have another number of U.S. data points including mortgage applications, services and PMIs, and finally at 7 p.m. UK time, it's the fed meeting minutes for June, so lots of data points coming up today, but of course the politics also creeping in them. I'm sure we'll all be watching PMQs with great interest. Yeah, we certainly will. And it's something that, of course, there's going to be plenty of scrutiny as well on the labor side of the bench is because this is the moment labor has already called for a snapple action, so we know that they're going to be putting pressure to see if they can capitalize on this situation. It's something that we've seen a lot of criticism of, particularly of the Labor Party leader Keir Starmer that he hasn't been able to really in all of these opportunities they've had to criticize Boris Johnson for all of the scandals that have struck the government. It's interesting to see how he will be able to capitalize that in this moment where all of a sudden we are seeing Boris Johnson yet again fighting for his position. Hanging by a thread wasn't that the front page of one of the newspapers, well, he does continue to hang by that thread and that thread has not broken yet, and so I'm looking at markets and seeing if we get any reaction really to this political turmoil and not much so far seems to be the story. I mean, the pound at one 1974 pretty unmoved versus where it was. We are seeing some guilt movement, but actually the guilt movement seems to be attributed to comments that we've heard from the Bank of England's come lift who's been talking about how the Central Bank will act forcefully to stop inflation becoming embedded. So we won't read too much into those moves in gilt markets, not necessarily
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Very discontented with years of stagnant wages and growing growing increasingly willing to strike. We're seeing labor unrest starting to percolate on the U.S. West Coast, where which is key for trade with Asia. Germans, Germany's ports right now are very congested because of some of some sporadic strikes and we're just seeing these discontented workers, whether they're sick of low pay or sick with actual COVID, we're seeing them slow down production, slow down the movement of goods and just heaping more disruption on top of the supply chains that we've seen disrupted for two and a half years now. Yeah, absolutely. It's not just these workers that want extra pay so many German here in the UK though at least half a dozen unions that are either in the middle of strike action or about to undertake this. How does it play out though over the coming weeks and months because it's how much money those workers might get that's pretty important. Exactly. I read something yesterday where the fuel employees at Heathrow are going to go on strike for three days. I think starting next week of the week after. And of course, that disrupts everybody who's going on their summer holidays, but remember the bottom half of airplanes are full of cargo, and that cargo is trying to get somewhere to an auto plant or to your front door and if those kinds of continued disruptions happen, then supply chains are just never going to really have an opportunity to repair themselves. So we're seeing just one disruption heaped on top of another one. And it's happening pretty much everywhere. The airports in the U.S. are a mess in the Europe, obviously they are. And it's just not giving supply chains any breathing room to recover. Brands in your piece in the terminal on this is absolutely fascinating and it comes with the illustrations of particularly port and where ships are lining up and the potential for congestion. There's then labor talks among U.S. dock workers as well that could exacerbate an already quite difficult situation. Well, exactly. And it doesn't even have to even have to be a work stoppage for it to cause to cause problems. A lot of ships are just bypassing the West Coast right now. There are no strikes. The cargo is flowing as well as it can right now through the West Coast, but ships are trying to avoid it and they're coming to the east coast. That's why you see off the coast of Savannah, Georgia. There's 30, 35 ships sitting there, you know, waiting 8 to ten days off the coast of New York City. There's a dozen or two ships waiting two or three weeks. So it's just creating one problem in one part of the world creates a disperses that problem to another. And we're just seeing this cycle of supply chain disruption that seemingly has no end. Okay, but isn't a recession going to solve all of this issue, both in the U.S. and Europe. Theoretically, if we purchase less, that's less cargo moving around. That's less need for trains and trucks and ships. That is the system actually needs a breather. Now a deep recession, obviously, would send would create all sorts of other problems. But the system could actually use a couple of quarters of weaker than weaker than normal activity. To kind of rebalance itself. Okay. Bloomberg's traits are Brendan Murray thank you very much for taking us through that analysis. Let's turn next to some of the events that we're looking ahead to today with Bloomberg's Leanne garin's Leon, what have you been looking at? So at 10 a.m. UK time, we'll have the latest retail sales data from the Euro area Stephen, now that's followed by island's unemployment rate which is happening at 11 a.m. UK time. Now at midday, we've been talking about this, we're expecting this Boris Johnson faces prime minister's questions and then what could be a grueling session of parliament's liaison committee where lawmakers will probe him on integrity and politics and the rule of law then from midday onwards
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Good morning to you and thank you, let's start here in the UK where Boris Johnson is digging in as prime minister, despite the resignation of two senior cabinet ministers, Chancellor Rishi sunak, quitter alongside Sajid javid the house secretary last night. Earlier, the prime minister publicly apologized for promoting a government official while knowing the MP faced allegations of sexual misconduct. He is appointed nadim sahai as the new Chancellor, breaking news in the last half an hour, OPEC secretary general Muhammad barkindo has died at the age of 63. He was in the final weeks of his 6 year tenure as OPEC achieve barkindo had returned to Nigeria ahead of his post OPEC career, and Bridgewater flagship fund has seen gains of 32% for the first half of the year. The hedge fund has benefited from increased market volatility. Sources say the ray dalio founded firm told investors that it's pure alpha two fund climbed 4.8% in June, rebounding after years of struggle, real told Bridgewater has made money in 65% of the markets in which it does trade. Global news, 24 hours a day on air and on Bloomberg quicktake, powered by more than 2700 journalists and analysts in 120 countries. I'm leann gorons, this is Bloomberg, Caroline. Thank you so much, Leigh Anne garen, with our top stories this morning, now let's go live to Bloomberg's emea economics and government reporter Lizzie burden, who is outside number 10 Downing Street this morning, so we're beginning to get MPs and new cabinet ministers starting to speak to the media, but firstly, Lizzie, let's just go over what happened last night because in rapid fire resignations and a lot of letters on the desk of the prime minister. That's right, Carolina. It started with a surprise, apology from Boris Johnson about his handling of the Chris pincher affair, which of course is just the latest chapter of the pest mins the story or these alleged sexual misconduct. Scandals, but that was quickly followed by the resignations of two of his most senior team sergeant jab at the health secretary and the Chancellor Rishi sunak. Both their resignation letters attacked his integrity and then it was the attorney general and the string of junior government members. So it does seem that the tide is finally turned against Boris Johnson. He came back with an emergency reshuffle trying to show his fighting back. He replaced sunac with the heart, and the deemed the Harvey, javid with Steve Barkley, the former chief of staff. Key figures have come out in support of Boris Johnson and Dominic raab as pretty Patel, but others will be considering their loyalty today and we may see more resignations ministers walking through the door of number ten today. And up next, Lizzie Boris Johnson has got to face the commons as well because he has prime minister's questions coming up likely to be a stormy one. Yeah. Yeah, the opposition leader Kirsten has missed the open goal previously where he's focused on policy over personality. But we will be watching that closely. Johnson also faces the parliamentary liaison committee. So that's the head of all the different select committees that will be a very difficult crowd to please today. But beyond that, to get rid of Boris Johnson, he'd either have to voluntarily resign, which looks unlikely or the 1922 committee of conservative backbenchers could change its rules, which currently states that there can't be another vote of confidence in the prime minister for another year. The argument against that would be that any less than a year and it creates instability for future prime ministers. It would be impossible to govern that a replacement for Boris Johnson would have even less of a mandate than he has remember he won that landslide majority in 2019. And Johnson will be saying, look around, can you see a viable replacement for me? Although now with Rishi sunak on the back benches, he will be much more dangerous than free to organize against his former bot. Yeah, well, the new Chancellor though nadeem zahawi has been out this morning talking about there being a global battle against inflation and that he's in government now to take tough decisions. I mean, it was meant to be Rishi sunak and Boris Johnson to set out a plan to save the economy. What do we know of what zahawi could do? Certainly he's got a big test. It is a whole is coming into this key role in the middle of a cost of living crisis. In Rishi sunak's resignation Leicester, he also highlighted his differences from Boris Johnson on what needed to be done in this post COVID economic recovery, his differences from Boris Johnson's boosterism, he said it was neat necessary to take difficult decisions if something's too good to be true, it probably is. Zahawi and Johnson are said to align fiscally, which we will help with the speech next week, Boris Johnson reportedly in a meeting with MPs last night said that it's now time for more tax cuts zahari said to be opening open to reversing that planned corporation tax rise. So this is really what matters for business and markets. Okay, Lizzie burden, Bloomberg's EMEA economics and government reporter outside number ten dining street. Thank you very much for that primary source questions at 1230 UK time today. So plenty ahead for Boris Johnson and while it has been extremely dramatic 24 hours in British politics. Yeah, absolutely. But talking about that economic challenge, Bloomberg's trades are Brendan Murray will be joining us in studio in just a moment to talk about consumer behavior. Amid rising recession fears he's done some special research just for us Brendan Murray will be here
Bloomberg Radio New York
"liaison committee" Discussed on Bloomberg Radio New York
"Bill Lee is chief economist at the milken institute He told Bloomberg radio earlier he doubts the release will achieve its goal One thing that we learned about the strategic patrolling reserves not just in the United States but globally is It's just a stock of stuff that had a one shot increase in supply What the markets are pricing in is the flow The flow that comes out of Russia and that missing flow has to be made up with by other flows Every time we release stuff from the petroleum reserves almost nothing happens to the oil price It just stays where it is Meanwhile the plan also reportedly includes a diplomatic push for a coordinated global release by other countries And right here in the UK small nuclear reactors could be contributing to the power grid by the end of the decade Bloomberg's chose capel reports Prime minister Boris Johnson yesterday accelerated the timeline set by his own government as part of the need for what he called big ticket nuclear solutions to the country's energy supply Johnson told the House of Commons liaison committee that the reactors could be running before the end of the decade while a government white paper in 2020 envisaged having the technology running by the early 2030s It comes as ministers are working on a fresh energy strategy in order to reduce reliance on imports following Russia's invasion of Ukraine In London Charles Gable Bloomberg daybreak Europe Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in war than 120 countries I'm neon garands this is Bloomberg Caroline Very interesting I think there'll be a continuing debate though about the small modular nuclear reactors here in the UK where you put them how long it takes how big the investment is There have been quite a lot of difficulties in getting a nuclear reactors and the investment needed for the UK's nuclear power plants So interesting that Johnson said that thank you so much Leanne garran's with a roundup of today's top stories I want to dive a bit deeper though into the all story this morning the U.S. weighing up this massive release of oil to combat inflation Let's bring in Bloomberg energy reporter Stephen stepinski So we heard in the news roundup just there The doubts about whether actually releasing crude from the strategic petroleum reserve has any impact on prices It has done but what's the debate Do we think that this could have a long-lasting effect at all So yeah you're right Those comments are smart and I think that's how the market views this Now we are down I think Brent is down around four or 5% Right now as the market digests this news volume is pretty low So there are going to be some pretty wild swings But this has happened before late last year the exact same thing happened by the Biden administration said they're going to release 50 million tons of time It's much more It's a 160 million tons is much more but they said they were released at oil prices fall and then slowly the market realizes hey we're not replacing flows We're not actually increasing production We're just taking a bunch of oil that you have in your stores and you're releasing it into the market It's a lot like a bandage And I think while we are seeing prices fall now people are going to say okay well if Russia isn't able to market its crude and if people aren't able to buy Russian oil and they lower their production just releasing these maybe 1 million barrels a day for 6 months or a few months that might not be enough to truly stabilize them So I suppose in that case my question might be why do it I mean we've got comments from RBC this morning from S&P from DBS and they all say something sort of similar that it's not enough to assuage the market So I suppose why does the Biden administration want to do this Is this a signal to voters in America What's the point I mean I think yeah you've hit the on the head It is probably more politically driven than actually fixing things I mean the fact of the matter is the U.S. government has very little ability very few tools to actually balance the market They can try to convince shale drillers to drill They can remove regulations that can try to get OPEC to push out their production But one of the few things that they can actually do is release oil from the reserves So it is a show that hey I'm the president I'm doing something I'm trying to balance this market While it won't have a big impact I think to those readers who don't look at the oil market every day that we do it could be a positive show and it could help maybe push down the price of gasoline for a day or two and help Biden pull together some support Okay So what do we expect from OPEC plus then meeting later today So yes OPEC is meeting And while the market is in a bit of an interesting position it doesn't look like OPEC plus is going to be moving to do anything to really stabilize and what we're expecting is that they're going to ratify a modest output of an increase of 432,000 barrels a day for May when they meet later today That is what they have always been planning Biden Japan a number of other countries have been asking that OPEC plus boost production even more But the problem is there is frankly to even hit these modest targets So even if you even if Saudi Arabia and all the other OPEC plus members say we're going to boost her target to act far more than what we have right now it might be challenging for them to even hit that So we're not expecting anything big out of OPEC plus later today Okay Stephen thank you so much for being with me this morning Really great to get your insights who has put it into context for us So beautifully Stephen sappy there's our Bloomberg energy reporter and this in terms of volatility from a really nice piece on the terminal this morning In the last 5 weeks Brent crude has seen an intraday swing of more than 5 bucks 23 times So that shows you just how volatile the oil markets have been since the start of the war in Ukraine So yeah really interesting to get that from Steven Good stuff Let's tell you what's happening though in terms of what's coming up on the rest of the program So speaking of that war we're going to be going live to my who is joining us in a moment She is in Hungary of course Victor Orban and his fidesz party are up for election He's actually one of the longest serving European leaders he's been a staunch Putin ally although he has supported the sanctions against Russia so I think this is a very interesting location.
Talking Politics
Lady Hale, U.K. Supreme Court Judge, Brings Down the Hammer
"Some delighted that Catherine Bernard is back with US fool the follow up not Ruben introspectively hit two and we'll get views on the connection between Italy Supreme Court brexit everything so Katherine. We talked about this last week by the weekend. Pat Wasn't a total to surprise how the judgment went kind of smoke signals coming out. I think a lot of people were surprised was unanimous. I think I was surprised it was unanimous. We use surprised with hindsight. No it makes a lot of sense. It's unanimous for the reason that one strength unity strength to it avoids anyone on from being picked off. There's always been a fear about a repetition of Daily Mail's enemies at the people and three it says to the public that you can't say are judge is known remain a judge wise unknown labor supporter. It's very difficult to say that all eleven have have particular anti brexit views and therefore having a unanimous decision sends a considerable force so I'm GonNa put the counter human just for the the sake of it given the judgment was on what were called the fundamentals of democracy. That was a key part of what was in there. If you go eleven people together you wouldn't get eleven to agree on the fundamentals of democracy so I can see why for the reasons you say unanimity is a kind of strength but it could also look like a kind of contrivance is striking us in this case there have been four judgments to one way to the other so there is a division of opinion but in each case the judgment was unanimous so judges never have disagreed within a case of any disagreed between courts and herrings is it partly because in this case they had the full evidence and indeed. They had the full range. NJIT arguments on both sides and the government case was just blown out of the water. Would that be the other way to put it. I think it's an another way of delay suspect they really did want unanimous. Mus Pin if they could get there and actually that says a great deal about lady hails chairing of the discussion to try and get all eleven on board food with a judgment particular. Judgment of strength is really quite remarkable. It does push against the idea that people say we're going down the American Supreme Court because one thing I can guarantee on t is a supreme court judgement in which the phrase the fundamentals of democracy was used judgment would not be unanimous. I mean the idea of it would be absurd in the American case so this court is not therefore politicized like that court is they might be politicized in a different way but not like that and I agree but what I think what most lawyers if if pushed would say what are the fundamentals of democracy well we're told about parliamentary sovereignty and the various permutations of parliamentary sovereignty Trotsky late in the judgment the bit that is slightly new is the emphasis on accountability of the executive comment which has never been articulated in quite that way as a fundamental of democracy but frankly it is implicit in a system which has such a strong notion of parliamentary sovereignty that if parliament parliament is sovereign therefore the other main institution for it to work the executive must be accountable to somebody and the courts have said it's account could parliament and I think that's what's really striking. So how does the Haiku judgment when the other way now stand because I was looking back over some of the coverage of that and a phrase that was used quite lot was those those judges were reflecting the orthodoxy well. They must not be a New Jersey right this. This is the new orthodoxy within a couple of weeks. The orthodoxies talks. He's been turned on his head so we have to be slightly careful that because what the High Court said was this matter is not justifiable. They didn't really get involved. Goldensohn nuts and bolts of the grounds for review because they said it's not justiciable. Although I think they did say were to be justifiable. We're not sure that we would be able to say that. There wasn't a good reason it was quite cool phrase but of course what we've also had is a Scottish court decision where you have no witness statement from the Prime Minster Number Ten and I think this really did play very badly ultimately for the government's and something that the Supreme Court took very seriously because that also is something that was really striking in this judgment Lady Hale of them said we are saying that we were given no reason let alone in a good reason we were given no reason now watched enough of it to see well. That's not strictly true. They were given reasons. They treated those reasons as completely void I mean this is that they were saying that. Two hours spent telling us your reasons you might as well have just not been talking a tool. Where does that leave the government's case. What does it mean if they were given reasons than they described. Describe them as no reasons at all well. I think what's interesting and this is where the Supreme Court is quite subtle and treads very careful line because they didn't won't get into motive and they didn't want to look at the prime minister's motive for parochial parliament and they also wanted to try and keep the queen came out of it as much as possible so what they did instead was they focused on the effect of the peregrination and the effect of the probation was that parliament parliament the parliamentary committees didn't sit there was no scrutiny over for example operation yellowhammer and the consequences of a no deal brexit there would be no meeting the Liaison Committee where the Prime Minister Answers questions and so they focused on the effect of the probation and they contrast. It's appropriation with recess where these things carry on but with probation everything grinds to halt as one thing was struck me was this idea that parliament had been prevented from conducting its core business holding the government to account and embodying like its role as sovereign. I was thinking about the judgments well parliament did have the opportunity to do what I suppose. It's core function which would be to dissolve dissolve parliament and have an election or to replace with another and that's right it definitely had the opportunity to do so and it chose not to exercise that that for reasons entirely to do with concerns about brexit and there being no deal brexit before a general election and difficulties about installing some some sort of caretaker alternative executive the rest is the core business the scrutinizing legislation all these things they seem to me sort of obviously important but the idea that parliament was prevented from doing what is its core function seems to me a very big leap on the part of the Supreme Court had parliament the opposition parties been gunning for an election seeking to dissolve parliament seeking to do and then being thwarted by the radiation there. I think the case would to be much stronger. Alternatively had voted no confidence either. Being thwarted or following parliament was prorogued. That's right. That's why I say the fundamentals democracy that phrase really stood stood out for me and now I have some sympathy Christy saying which is some sane is not a lawyer as someone who's studied politics. This is the difference for a non lawyer. There's there's some quite contentious arguments to be had about. What is the core function and how it does work and then it also in the judgment says at this particular times it does say this is contextual. We're saying this because a really important decisions coming up on the thirty first so it wasn't nothing to do with Brexit and yet once you go down that road then you can say well. There are a lot of contingencies Ziesel play her. I mean we saw in our podcast last week. This is where political scientists come at this from a very different angle from from lawyers the Supreme Court had to tread careful path and they had to be careful not to go into the bigger political background including having an election so they looked at the power to Pirogue and and they looked at whether that power was essentially unlimited or limited and that's what courts do they're prepared to look at the limits at the power by looking at the limits the power they say well. Actually there are limits on this power. You can't use this power in a totally open into way they looked over the edge and saw the possibility ability of production being used by a prime minister to suspend parliament for months on end or to avoid having voted no confidence sorta avoid having a debate that they want to have and said okay that power if it was unlimited if it can't be subject to any judicial check could be used from constitution the Pepsi's and clearly this has not had a very clear rule legal rule for future perturbations. No prime minister is going to be able to do what Johnson did but can we read anything else into it so they must be relatively high probability that some big cases are coming back to the courts and ultimately Supreme Court in the next few weeks including possibly illegal challenges. Johnson is still in post and we get closer to the thirty first and the Ben Act kicks in he has to send a letter and he the dozen awesome twenty cents a in a way that is not straightforward. Is there anything that we can read from this judgment and is unanimity to the possibility of how the court might decide on those is cool brexit matters not least is it going to be able to hold the unanimity line once we get into the real politics of this yet pure speculation but what we do know is already a case yes which has been lodged in the Scottish court using this remedy that is unique to Scottish law to say that the court could if necessary sends the letter mandated by the Ben Burtt Act if the prime minister will not do so the prime minister's put some evidence into Scottish corpora evidence is at the moment confidential but it isn't a message courts will look some of these issues what we do know is. I think this judgment this in court judgement of yesterday makes makes it very difficult for the government just Perot again with a view to have appropriation which lasts all the way to the second or the fifth of November or the government will pirogue broke for speed queen speech have to be a matter of days but a much longer period of peregrination which is something that has been talked about. I think is now off the table so again if this was the US Supreme Court we would be reading the runes from both the numbers and the wording of the judgement about how this cool might decide on other a similarly contentious political constitutional matters so we're at the start of what might be a whole series of contentious judgments and confrontations confrontations through the courts. Do we have enough yet to be reading the rune in we don't. I mean so again. That's why unanimity is different from had it been eight three seven four. We would now be saying those four are going to be the ones who will side with the government on the next. Wouldn't we and we still some evidence of people talking about what about Lord would read lewd reads going to be the next president from court. He's been very cautious about allowing judicial review what is essentially political matters and yet he was part of the eleven so they get some cover both political and legal cover from being posted the eleven but it doesn't mean that in different factual circumstances slightly slightly different factual circumstances they might not break differently in Alaska total non lawyer question habit if you're on the the Heiko when the other way including very very senior the judges the master of the rolls is it embarrassing we had lawyers senior judges feel when they get really not just overruled steamrollered by the piss everyone's human and you don't like being reversed a new jetties say that but equally judges get reversed overturned some. MHM stage such a high profile that's true but on the other hand what the Supreme Court was presented with sort of very orthodox conservative with a small small-c approach taken by the High Court where churches say that political matters on your justiciable and on the other hand you've got the Scottish court not saying actually this is justifiable and definite attempt to stymied the role of parliament negree GIS approach to the parliament and therefore we got to do as something and so inevitably. There's going to be a winner in an loser either the High Court of England Wales or the Scottish court. We're going to be upset at a the very basic level and the Supreme Court obviously found much much much more sympathy with the judges of the Scottish score and could those judges say like the rest most of us.