April 23, 2024 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Rishi Sunak’s government is preparing to get the first deportation flights to Rwanda off the ground by July after the UK prime minister’s flagship law to declare the African nation a “safe” destination for asylum seekers cleared its final hurdle in Parliament.
(2) The UK will send more Storm Shadow long-range missiles to Ukraine as part of its single biggest military aid package to the country since Russia’s invasion, Prime Minister Rishi Sunak said.
(3) Goldman Sachs' head of dealmaking for financial institutions in Europe, the Middle East and Africa has relocated to Paris and is planning to double headcount for his team in the city as M&A between banks and insurers accelerates.
(4) The FTSE 100 Index closed at a record high for the first time in more than a year, as recent equity market volatility and geopolitical risks prompted investors to pile into the defensive sectors that characterise the UK benchmark.
(5) Some investors and analysts are questioning whether CEO François-Henri Pinault is the right man to overhaul Gucci’s parent Kering at this critical juncture.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg
Daybak podcast, available every morning on Apple, Spotify or wherever
you listen. It's Tuesday, the twenty third of April in London.
I'm Caroline Hipki.
Speaker 2 (00:18):
And I'm Stephen Carroll. Coming up today.
Speaker 3 (00:20):
After a long fight and much controversy, Rishi Sinaks Rwanda
deportation plan is passed through Parliament.
Speaker 1 (00:27):
Goldman Sachs moves a top deal maker from London to
Paris in the latest relocation away from the city of London.
Speaker 3 (00:34):
Plus fighting to pull Gucci off the discount rack, some
analysts and investors question whether Carring CEO Francois Henri Pino
is the right man to overhaul the fashion house.
Speaker 1 (00:45):
Let's start with a roundup of our top stories.
Speaker 3 (00:47):
After months of delays, the UK's controversial Rwanda deportation bill
will now become law. Following weeks of legislative back and
forth between MP's and the House of Lords. The Upper
House backed down last night, allowing Rishisunak's plan to say
it send failed asylum seekers to the African country to
pass through Parliament. The government is relying on the policy
(01:07):
to deter migrants from making the perilous journey in small
boats across the English Channel. Rishisunak says plans are well underway.
Speaker 4 (01:15):
We've put an airfield on standby, booked commercial charter planes
for specific slots, and we have five hundred highly trained
individuals ready to escort a legal migrants all the way
to Rwanda, with three hundred more trained in the coming weeks.
Speaker 3 (01:32):
Sunak's advisors see the policy as a potential electoral game changer,
showing he's delivering on a promise to stop the boats.
The number of migrants reaching the UK by boat hit
a record in the first three months of this year.
Speaker 1 (01:44):
Meanwhile, the UK is preparing its biggest military aid package
for Ukraine since Russia's invasion. The Prime Minister says that
long range missiles, boats and armored vehicles totaling five hundred
million pounds will be sent to Kiev the news as
President Biden promised his administration would move quickly to distribute
more weapons after the Senate votes on an aid package
(02:07):
this week. Retired US Army briggerdier General Mark Kimmitt says
the assistance will help slow Russia's progress.
Speaker 5 (02:16):
It will allow Ukraine to defend the front lines for
this fighting season. I don't think we're at the point
where this aid alone will allow them to conduct a
counter offensive. And I think that we've got to realize
that Russia is making gains and the most important thing
is to stop those gains, to reinforce the lines.
Speaker 1 (02:37):
Mark Kimmitt, speaking there, Ukrainian President Volodomi Zelenski says the
package will really strengthen the armed forces of Ukraine.
Speaker 3 (02:46):
A key Goldman Sachs executive has moved from London to Paris,
and the latest sign of finances Brexit exodus. The head
of deal making for EMEA financial Institutions, Derek Levens, has
told Bloomberg he intends to double the size of the
team in France.
Speaker 2 (03:00):
Chris Pett has the story.
Speaker 6 (03:02):
Financial deal making is heating up in Europe and the
UK is not necessarily invited. Firms have excess cash and
want to deploy it across the continent, making Paris a
key place to drive m and a activity. That's what
Goldman's Dirk Levines told Bloomberg when we asked about why
(03:23):
he'd moved there from London. He added, there is a
Brexit component, but it's not the main driver. It's the
latest exit of a senior investment banker from the city
in the wake of Britain's decision to leave the European Union.
In London, Chris Pitt Bloomberg Radio the foot.
Speaker 1 (03:43):
To one hundred clothes at are record high for the
first time in more than a year. On Monday, the
indexes Mining an energy focus gave it a boost in
the face of geopolitical uncertainty and OPEC plus supply limits.
It's up four percent a year to date, with Shell
and bp A loan accounting for almost half of those gains.
The rise will come as a relief to the London
(04:05):
Stock Exchange after the CEO of Shell Whales Swan told
Bloomberg that investors undervalue the business where it is if
the valuation gap with the United States doesn't close, though,
Swan says the oil major would have to look at
all options for its listing.
Speaker 3 (04:21):
As tensions with Iran ease, Israel is returning its focus
to Rafa and southern Gaza An area. Israeli Prime Minister
Benjaminettan Yaho has described as the last remaining stronghold of
hamas more than one million people have been sheltering in
the small city after fleeing their homes since the start
of Israel's offensive in October. Speaking on Sunday, Netanyaho indicated
(04:44):
he's about to send troops into Raffa.
Speaker 7 (04:46):
We will land additional and painful blows on it, and
it will happen soon.
Speaker 2 (04:52):
Mimkovin.
Speaker 7 (04:53):
In the coming days, we will increase the military and
political pressure on Hamas because this is the only way
to free our hostages and achieve of victory.
Speaker 3 (05:02):
Netaniahu's comments were followed by airstrikes on Rafa overnight into Monday.
Israeli military officials estimate that up to eight thousand TAMAS
fighters are holed up in the city. The US and
other allies have strongly urged Israel not to invade Rafa
amid fears that it would likely worsen the humanitarian crisis
in Gaza.
Speaker 1 (05:22):
Pro Palestinian protests are spreading across some of America's most
prestigious universities, including Harvard, MIT, and Yale. It comes in
the wake of a decision by Columbia University to call
in the police to arrest hundreds of students for trespassing.
The move was intended to clear pro Palestinian demonstrators who
(05:42):
want the school to exit all investments that benefit Israel's government,
but the crackdown appears to have had the opposite effect.
Speaking yesterday, President Biden also weighed in on the protests.
Speaker 2 (05:57):
Protest that wife shut up to deal with that.
Speaker 5 (06:01):
I also condemn those who don't understand what's going now
with a panel schellus.
Speaker 1 (06:06):
Joe Biden's reaction there. Columbia has now moved its classes online,
while other universities have got tough with demonstrators. At Yale,
police arrested sixty people, including forty seven students, early on Monday,
and Harvard restricted access to parts of its campus this week. Now,
in a moment, we'll bring you more on the vote
(06:26):
in the UK Parliament to approve plans to deport failed
asylum seekers to Rwanda. And also we'll look at why
the luxury giant Curring is facing challenges for its main brand, Gucci,
and what the way forward and might be. But another
story called Hi this morning, Actually you you prodded me
and said that you thought this was a really good one,
(06:46):
talking about, you know, summer holidays. Our opinion columnist Tyler Cohen,
writing about the ongoing dilemma about over tourism. I mean
this is a familiar one for us in Europe.
Speaker 2 (06:58):
Yeah, it certainly is.
Speaker 3 (06:58):
And so Tyler was sparked to write about this by
the fact that our authoritism in Barcelona have gotten Apple
and Google mapps to take a bus route off their
apps to basically mean that tourists won't know it's there
and thus won't overcrowd a route that locals use as well. Now,
he says that oftentimes in the arguments you hear much
louder from those cities that want to try and reduce
(07:19):
over tourism, and he's putting the tourist case forward, and
he's essentially saying, make them pay for it, make the dilemma.
Speaker 2 (07:27):
That you should do something like.
Speaker 3 (07:28):
He uses the example of the price the higher prices
for bullet trains in Japan for tourists.
Speaker 2 (07:32):
He says that's the way to do it.
Speaker 3 (07:34):
Essentially, when a tourist experience costs more, tourists themselves can
decide whether or not they think it's working.
Speaker 5 (07:39):
Yeah.
Speaker 1 (07:40):
The bus route, of course, is one of the most
fabulous in Barcelona, and it goes to Anthony Gaalavi's Park
in Barcelona. So I think it's in some ways it's
going to make the tourists walk further. I have an
issue with making all tourists pay more to see those
things which are kind of global heritage sites. But I
(08:00):
do get that Cohen says, you know, if you're up
the price, then you reduce the tourism, and it also
benefits the locals if you reuse that money, let's say,
to build affordable housing, et cetera in your city.
Speaker 3 (08:11):
Exactly, And that's sort of part of his argument. He
essentially says, comes to the conclusion that actually having too
many tourists is not as big a problem as having
too few for a lot of places as well. Anyway,
worth your time to read on the turn of this morning,
and of course I'm Bloomberg doc Ham as well.
Speaker 1 (08:22):
Okay, let's get to then RICHI soon acts controversial deportation
bill to send failed asylum seekers to Africa. Well, it
is becoming law after the House of Laws dropped its
opposition to the government's plan that was first announced two
years ago. The Prime Minister said in a news conference
on Monday that the first flights would take off in
ten to twelve weeks. Joining us now to discuss our
(08:44):
UK Politics reporter James Walcott, good morning. Firstly, just what
happened last night? It was set to be this sort
of huge battle between the Lords and the Commons.
Speaker 2 (08:53):
I mean, Karen, it was.
Speaker 8 (08:54):
I mean you say they dropped their opposition and is
technically correct, but I mean the better way to put
this is strong arm the lords into accepting this. I mean,
not to take you back to the nineteen hundreds. In
the Parliament Act, the Lords effectively say our job is
to critique. We can't block forever a bill and the
Government basically said we're just going to keep passing this
until you will go home. And they went back and
(09:15):
forth five times. The heart of the Lord's objection is
how do you independently and in future as sure that
Rwanda is safe? Because the bill basically says Randa is safe.
That makes the Supreme Court so like ruling last year
that Randa was not safe invalid and therefore flights can
start straight away. And the Lords went, but how are
you showing that and how will you show.
Speaker 2 (09:35):
That in future? Now?
Speaker 8 (09:36):
I want to read from the person who was putting
that to the concerned part who was leading that amendment,
Lord David Anderson, who was a cross bench independent peer.
So at the end of this he said, the purpose
of ping pong, where this goes back and forth between
the chambers, is to persuade the government through force of arguments,
to come to the table and compromise. They have refused
to do so. So they did back down, they did
(09:56):
drop the opposition, but basically they did that because Parliament
convention states they can't hold up an elected chamber, not
because their objections have been yet dealt with.
Speaker 2 (10:08):
James.
Speaker 3 (10:09):
Why has this become such an important issue for the
Prime Minister?
Speaker 8 (10:14):
I think three answers Stephen. One is the net migration
numbers from twenty twenty two at a record of seven
hundred and forty five thousand, put the issue back on
the table. The second is Richards himself has chosen this
issue in an election year and has given it that way.
I mean he did the press conference yesterday. He has
multiple times chosen to put this issue at the spotlight
(10:34):
and in the center of attention. And thirdly, it's his
own party, many of which have driven breaksit through an
intense personal and political cost of which a key message
of that twenty sixteen referendum was to get migration down.
This is where it gets messy because a lot of
the messaging around that referendum and by Torrian Pas is
around net migration stopped the votes fro around it's specifically
about illegal migration. However, that kind of strength of feeling
(10:57):
from MPs and the Prime Minister is what has driven
this issue back to the top of agenda, driven as
well by that data.
Speaker 1 (11:03):
Yeah, exactly. The data is sort of undermining the kind
of argument that the government's made progress. I mean, will
it deter boat crossings?
Speaker 2 (11:11):
Again?
Speaker 1 (11:11):
Much debate on that.
Speaker 8 (11:12):
That is an impossible question to answer, Caroline, because we
simply don't know. I mean, look, I will get you
a letter from twenty twenty two that the head of
the Home Office Civil Service wrote a pretty petel at
the time saying we cannot because we have zero estimates
of how this policy will deter migrants give it a
good enough value for money. So he basically has to
write a letter saying we don't think this is value
(11:33):
for money because we can't prove it. And that's what
Labour keep using the attack and they call it an
expensive gimmick to use the migration observative stats. Briefly, they say,
look we have a few hundred people sent every year
for the UK government's figures to be taken at face value,
and if you take the numbers of people commingly crossing
the boats, you've got about a one to two percent
chance if you cross illegally. A being sent for Rowanda
(11:53):
will that one to pursue two percent chance if flights
do start taking off in twelve weeks, Rick says deter
people that he's the question whether it will is at
this point hard to say, But what I will say
is as and when it does start, the public will
start to make a judgment on if it has and
then re sixt policy will have to face the question
if it has succeeded or failed, and that is weeks away.
Speaker 2 (12:15):
Okay, James will Cock, are you eco politics supporter? Thank you?
Speaker 1 (12:19):
After Curring's shocking profit warning in the first quarter, some
investors are questioning whether CEO of fas A Rippino is
the right man to overhaul this brand at a critical juncture.
Gucci is undergoing a designer transition with Sabatta de Sano's
quiet luxury push, but the corporate governance issue is also
(12:40):
at state. Joining us now to discuss today's big take
is Bloomberg's Caroline Cunna in Paris. Great to have you
on the program this morning, you know, talking about Curring.
Good morning. I mean, unlike LVMH and el Meyer's Curring
share price has lost about a third of its value
since the pandemic, and so one could ask what has
gone wrong with the brand.
Speaker 9 (13:03):
So, you know, one issue is that Karen has been
over reliant on Gucci. The brand Gucci represents two thirds
of profitability, whereas if you compare to Return, for example,
it only represents about half of LVMH profitability. So Kerring
also has only thirteen brands, whereas LVMH has a more
(13:24):
diverse portfolio seventy five brands, so they can also be
more resistant when you have some downturns, for example in China,
and that is a problem with Gucci as well. Gucci
is very exposed to China and less to the US,
so they cannot really benefit from the rebound of US
demand as much as rivals. But there's something more that
(13:46):
you can read in this big take is that Gucci
is actually suffering from a declining desirability. So they failed
to number twelve in what we call the least Index
which tracks, which tracks brands acording to online searches and
on social media. So they have a new designer, Sabertodosano,
who comes from Valentino, presented his first collection in Milan
(14:09):
last September, but it's hard to tell yet whether his
style of quiet luxury, which is very different from his
predecessor Lessandro Michele, who was very colorful, will actually work out.
And his level of fame, of course, is pretty far
from the former legendary a Gucci designer Tom Ford in
the early two thousands.
Speaker 3 (14:29):
Karen In central to Caring's future, of course, is the
CEO of Francoisino, a fascinating figure, but some investors and
company executives are pointing the finger at him for the
problems at carrying Yes.
Speaker 9 (14:42):
Some investors have been questioning his responsibility. He's already his
second generation. His father Francois Pino founded the group, and
he does not have the same management style as his
rival Bernarano, who is still at the helm at LVMH.
Berano is very controlling, was Pino is considered very lasse
fair living, perhaps too much freedom to the brands, and
(15:06):
also the question of his daily involvement. He spends a
lot of time on the West Coast in the US
with his wife Salma ak and last year he spent
close to seven billion dollars to buy Creative Artist Agency,
which manage his talents from Brad Pitt to his own wife. Actually,
(15:26):
and yet one source that Karen told us in this
Big Take that that hasn't distracted him from caring. He's
also done some good moves recently, purchasing a biggest take
in Valentino, investing in luxury I wear, in fact becoming
the number two in luxury I wear in the world.
But there's still a long way to go to catch
(15:47):
up revivals, and his son Francois is only twenty six
years old, so he's too young to succeed him quite yet.
Speaker 3 (15:56):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (16:02):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 3 (16:08):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (16:14):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa. Play Bloomberg eleven thirty.
I'm Caroline Hepka.
Speaker 3 (16:22):
And I'm Stephen Carol. Join us again tomorrow morning for
all the news you need to start your day, right
here on Bloomberg Daybreak Europe
Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg
Daybak podcast, available every morning on Apple, Spotify or wherever
you listen. It's Tuesday, the twenty third of April in London.
I'm Caroline Hipki.
Speaker 2 (00:18):
And I'm Stephen Carroll. Coming up today.
Speaker 3 (00:20):
After a long fight and much controversy, Rishi Sinaks Rwanda
deportation plan is passed through Parliament.
Speaker 1 (00:27):
Goldman Sachs moves a top deal maker from London to
Paris in the latest relocation away from the city of London.
Speaker 3 (00:34):
Plus fighting to pull Gucci off the discount rack, some
analysts and investors question whether Carring CEO Francois Henri Pino
is the right man to overhaul the fashion house.
Speaker 1 (00:45):
Let's start with a roundup of our top stories.
Speaker 3 (00:47):
After months of delays, the UK's controversial Rwanda deportation bill
will now become law. Following weeks of legislative back and
forth between MP's and the House of Lords. The Upper
House backed down last night, allowing Rishisunak's plan to say
it send failed asylum seekers to the African country to
pass through Parliament. The government is relying on the policy
(01:07):
to deter migrants from making the perilous journey in small
boats across the English Channel. Rishisunak says plans are well underway.
Speaker 4 (01:15):
We've put an airfield on standby, booked commercial charter planes
for specific slots, and we have five hundred highly trained
individuals ready to escort a legal migrants all the way
to Rwanda, with three hundred more trained in the coming weeks.
Speaker 3 (01:32):
Sunak's advisors see the policy as a potential electoral game changer,
showing he's delivering on a promise to stop the boats.
The number of migrants reaching the UK by boat hit
a record in the first three months of this year.
Speaker 1 (01:44):
Meanwhile, the UK is preparing its biggest military aid package
for Ukraine since Russia's invasion. The Prime Minister says that
long range missiles, boats and armored vehicles totaling five hundred
million pounds will be sent to Kiev the news as
President Biden promised his administration would move quickly to distribute
more weapons after the Senate votes on an aid package
(02:07):
this week. Retired US Army briggerdier General Mark Kimmitt says
the assistance will help slow Russia's progress.
Speaker 5 (02:16):
It will allow Ukraine to defend the front lines for
this fighting season. I don't think we're at the point
where this aid alone will allow them to conduct a
counter offensive. And I think that we've got to realize
that Russia is making gains and the most important thing
is to stop those gains, to reinforce the lines.
Speaker 1 (02:37):
Mark Kimmitt, speaking there, Ukrainian President Volodomi Zelenski says the
package will really strengthen the armed forces of Ukraine.
Speaker 3 (02:46):
A key Goldman Sachs executive has moved from London to Paris,
and the latest sign of finances Brexit exodus. The head
of deal making for EMEA financial Institutions, Derek Levens, has
told Bloomberg he intends to double the size of the
team in France.
Speaker 2 (03:00):
Chris Pett has the story.
Speaker 6 (03:02):
Financial deal making is heating up in Europe and the
UK is not necessarily invited. Firms have excess cash and
want to deploy it across the continent, making Paris a
key place to drive m and a activity. That's what
Goldman's Dirk Levines told Bloomberg when we asked about why
(03:23):
he'd moved there from London. He added, there is a
Brexit component, but it's not the main driver. It's the
latest exit of a senior investment banker from the city
in the wake of Britain's decision to leave the European Union.
In London, Chris Pitt Bloomberg Radio the foot.
Speaker 1 (03:43):
To one hundred clothes at are record high for the
first time in more than a year. On Monday, the
indexes Mining an energy focus gave it a boost in
the face of geopolitical uncertainty and OPEC plus supply limits.
It's up four percent a year to date, with Shell
and bp A loan accounting for almost half of those gains.
The rise will come as a relief to the London
(04:05):
Stock Exchange after the CEO of Shell Whales Swan told
Bloomberg that investors undervalue the business where it is if
the valuation gap with the United States doesn't close, though,
Swan says the oil major would have to look at
all options for its listing.
Speaker 3 (04:21):
As tensions with Iran ease, Israel is returning its focus
to Rafa and southern Gaza An area. Israeli Prime Minister
Benjaminettan Yaho has described as the last remaining stronghold of
hamas more than one million people have been sheltering in
the small city after fleeing their homes since the start
of Israel's offensive in October. Speaking on Sunday, Netanyaho indicated
(04:44):
he's about to send troops into Raffa.
Speaker 7 (04:46):
We will land additional and painful blows on it, and
it will happen soon.
Speaker 2 (04:52):
Mimkovin.
Speaker 7 (04:53):
In the coming days, we will increase the military and
political pressure on Hamas because this is the only way
to free our hostages and achieve of victory.
Speaker 3 (05:02):
Netaniahu's comments were followed by airstrikes on Rafa overnight into Monday.
Israeli military officials estimate that up to eight thousand TAMAS
fighters are holed up in the city. The US and
other allies have strongly urged Israel not to invade Rafa
amid fears that it would likely worsen the humanitarian crisis
in Gaza.
Speaker 1 (05:22):
Pro Palestinian protests are spreading across some of America's most
prestigious universities, including Harvard, MIT, and Yale. It comes in
the wake of a decision by Columbia University to call
in the police to arrest hundreds of students for trespassing.
The move was intended to clear pro Palestinian demonstrators who
(05:42):
want the school to exit all investments that benefit Israel's government,
but the crackdown appears to have had the opposite effect.
Speaking yesterday, President Biden also weighed in on the protests.
Speaker 2 (05:57):
Protest that wife shut up to deal with that.
Speaker 5 (06:01):
I also condemn those who don't understand what's going now
with a panel schellus.
Speaker 1 (06:06):
Joe Biden's reaction there. Columbia has now moved its classes online,
while other universities have got tough with demonstrators. At Yale,
police arrested sixty people, including forty seven students, early on Monday,
and Harvard restricted access to parts of its campus this week. Now,
in a moment, we'll bring you more on the vote
(06:26):
in the UK Parliament to approve plans to deport failed
asylum seekers to Rwanda. And also we'll look at why
the luxury giant Curring is facing challenges for its main brand, Gucci,
and what the way forward and might be. But another
story called Hi this morning, Actually you you prodded me
and said that you thought this was a really good one,
(06:46):
talking about, you know, summer holidays. Our opinion columnist Tyler Cohen,
writing about the ongoing dilemma about over tourism. I mean
this is a familiar one for us in Europe.
Speaker 2 (06:58):
Yeah, it certainly is.
Speaker 3 (06:58):
And so Tyler was sparked to write about this by
the fact that our authoritism in Barcelona have gotten Apple
and Google mapps to take a bus route off their
apps to basically mean that tourists won't know it's there
and thus won't overcrowd a route that locals use as well. Now,
he says that oftentimes in the arguments you hear much
louder from those cities that want to try and reduce
(07:19):
over tourism, and he's putting the tourist case forward, and
he's essentially saying, make them pay for it, make the dilemma.
Speaker 2 (07:27):
That you should do something like.
Speaker 3 (07:28):
He uses the example of the price the higher prices
for bullet trains in Japan for tourists.
Speaker 2 (07:32):
He says that's the way to do it.
Speaker 3 (07:34):
Essentially, when a tourist experience costs more, tourists themselves can
decide whether or not they think it's working.
Speaker 5 (07:39):
Yeah.
Speaker 1 (07:40):
The bus route, of course, is one of the most
fabulous in Barcelona, and it goes to Anthony Gaalavi's Park
in Barcelona. So I think it's in some ways it's
going to make the tourists walk further. I have an
issue with making all tourists pay more to see those
things which are kind of global heritage sites. But I
(08:00):
do get that Cohen says, you know, if you're up
the price, then you reduce the tourism, and it also
benefits the locals if you reuse that money, let's say,
to build affordable housing, et cetera in your city.
Speaker 3 (08:11):
Exactly, And that's sort of part of his argument. He
essentially says, comes to the conclusion that actually having too
many tourists is not as big a problem as having
too few for a lot of places as well. Anyway,
worth your time to read on the turn of this morning,
and of course I'm Bloomberg doc Ham as well.
Speaker 1 (08:22):
Okay, let's get to then RICHI soon acts controversial deportation
bill to send failed asylum seekers to Africa. Well, it
is becoming law after the House of Laws dropped its
opposition to the government's plan that was first announced two
years ago. The Prime Minister said in a news conference
on Monday that the first flights would take off in
ten to twelve weeks. Joining us now to discuss our
(08:44):
UK Politics reporter James Walcott, good morning. Firstly, just what
happened last night? It was set to be this sort
of huge battle between the Lords and the Commons.
Speaker 2 (08:53):
I mean, Karen, it was.
Speaker 8 (08:54):
I mean you say they dropped their opposition and is
technically correct, but I mean the better way to put
this is strong arm the lords into accepting this. I mean,
not to take you back to the nineteen hundreds. In
the Parliament Act, the Lords effectively say our job is
to critique. We can't block forever a bill and the
Government basically said we're just going to keep passing this
until you will go home. And they went back and
(09:15):
forth five times. The heart of the Lord's objection is
how do you independently and in future as sure that
Rwanda is safe? Because the bill basically says Randa is safe.
That makes the Supreme Court so like ruling last year
that Randa was not safe invalid and therefore flights can
start straight away. And the Lords went, but how are
you showing that and how will you show.
Speaker 2 (09:35):
That in future? Now?
Speaker 8 (09:36):
I want to read from the person who was putting
that to the concerned part who was leading that amendment,
Lord David Anderson, who was a cross bench independent peer.
So at the end of this he said, the purpose
of ping pong, where this goes back and forth between
the chambers, is to persuade the government through force of arguments,
to come to the table and compromise. They have refused
to do so. So they did back down, they did
(09:56):
drop the opposition, but basically they did that because Parliament
convention states they can't hold up an elected chamber, not
because their objections have been yet dealt with.
Speaker 2 (10:08):
James.
Speaker 3 (10:09):
Why has this become such an important issue for the
Prime Minister?
Speaker 8 (10:14):
I think three answers Stephen. One is the net migration
numbers from twenty twenty two at a record of seven
hundred and forty five thousand, put the issue back on
the table. The second is Richards himself has chosen this
issue in an election year and has given it that way.
I mean he did the press conference yesterday. He has
multiple times chosen to put this issue at the spotlight
(10:34):
and in the center of attention. And thirdly, it's his
own party, many of which have driven breaksit through an
intense personal and political cost of which a key message
of that twenty sixteen referendum was to get migration down.
This is where it gets messy because a lot of
the messaging around that referendum and by Torrian Pas is
around net migration stopped the votes fro around it's specifically
about illegal migration. However, that kind of strength of feeling
(10:57):
from MPs and the Prime Minister is what has driven
this issue back to the top of agenda, driven as
well by that data.
Speaker 1 (11:03):
Yeah, exactly. The data is sort of undermining the kind
of argument that the government's made progress. I mean, will
it deter boat crossings?
Speaker 2 (11:11):
Again?
Speaker 1 (11:11):
Much debate on that.
Speaker 8 (11:12):
That is an impossible question to answer, Caroline, because we
simply don't know. I mean, look, I will get you
a letter from twenty twenty two that the head of
the Home Office Civil Service wrote a pretty petel at
the time saying we cannot because we have zero estimates
of how this policy will deter migrants give it a
good enough value for money. So he basically has to
write a letter saying we don't think this is value
(11:33):
for money because we can't prove it. And that's what
Labour keep using the attack and they call it an
expensive gimmick to use the migration observative stats. Briefly, they say,
look we have a few hundred people sent every year
for the UK government's figures to be taken at face value,
and if you take the numbers of people commingly crossing
the boats, you've got about a one to two percent
chance if you cross illegally. A being sent for Rowanda
(11:53):
will that one to pursue two percent chance if flights
do start taking off in twelve weeks, Rick says deter
people that he's the question whether it will is at
this point hard to say, But what I will say
is as and when it does start, the public will
start to make a judgment on if it has and
then re sixt policy will have to face the question
if it has succeeded or failed, and that is weeks away.
Speaker 2 (12:15):
Okay, James will Cock, are you eco politics supporter? Thank you?
Speaker 1 (12:19):
After Curring's shocking profit warning in the first quarter, some
investors are questioning whether CEO of fas A Rippino is
the right man to overhaul this brand at a critical juncture.
Gucci is undergoing a designer transition with Sabatta de Sano's
quiet luxury push, but the corporate governance issue is also
(12:40):
at state. Joining us now to discuss today's big take
is Bloomberg's Caroline Cunna in Paris. Great to have you
on the program this morning, you know, talking about Curring.
Good morning. I mean, unlike LVMH and el Meyer's Curring
share price has lost about a third of its value
since the pandemic, and so one could ask what has
gone wrong with the brand.
Speaker 9 (13:03):
So, you know, one issue is that Karen has been
over reliant on Gucci. The brand Gucci represents two thirds
of profitability, whereas if you compare to Return, for example,
it only represents about half of LVMH profitability. So Kerring
also has only thirteen brands, whereas LVMH has a more
(13:24):
diverse portfolio seventy five brands, so they can also be
more resistant when you have some downturns, for example in China,
and that is a problem with Gucci as well. Gucci
is very exposed to China and less to the US,
so they cannot really benefit from the rebound of US
demand as much as rivals. But there's something more that
(13:46):
you can read in this big take is that Gucci
is actually suffering from a declining desirability. So they failed
to number twelve in what we call the least Index
which tracks, which tracks brands acording to online searches and
on social media. So they have a new designer, Sabertodosano,
who comes from Valentino, presented his first collection in Milan
(14:09):
last September, but it's hard to tell yet whether his
style of quiet luxury, which is very different from his
predecessor Lessandro Michele, who was very colorful, will actually work out.
And his level of fame, of course, is pretty far
from the former legendary a Gucci designer Tom Ford in
the early two thousands.
Speaker 3 (14:29):
Karen In central to Caring's future, of course, is the
CEO of Francoisino, a fascinating figure, but some investors and
company executives are pointing the finger at him for the
problems at carrying Yes.
Speaker 9 (14:42):
Some investors have been questioning his responsibility. He's already his
second generation. His father Francois Pino founded the group, and
he does not have the same management style as his
rival Bernarano, who is still at the helm at LVMH.
Berano is very controlling, was Pino is considered very lasse
fair living, perhaps too much freedom to the brands, and
(15:06):
also the question of his daily involvement. He spends a
lot of time on the West Coast in the US
with his wife Salma ak and last year he spent
close to seven billion dollars to buy Creative Artist Agency,
which manage his talents from Brad Pitt to his own wife. Actually,
(15:26):
and yet one source that Karen told us in this
Big Take that that hasn't distracted him from caring. He's
also done some good moves recently, purchasing a biggest take
in Valentino, investing in luxury I wear, in fact becoming
the number two in luxury I wear in the world.
But there's still a long way to go to catch
(15:47):
up revivals, and his son Francois is only twenty six
years old, so he's too young to succeed him quite yet.
Speaker 3 (15:56):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (16:02):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 3 (16:08):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (16:14):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa. Play Bloomberg eleven thirty.
I'm Caroline Hepka.
Speaker 3 (16:22):
And I'm Stephen Carol. Join us again tomorrow morning for
all the news you need to start your day, right
here on Bloomberg Daybreak Europe
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations.
The Nikki Glaser Podcast
Every week comedian and infamous roaster Nikki Glaser provides a fun, fast-paced, and brutally honest look into current pop-culture and her own personal life.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.