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This is the Bloomberg DAYBAQ podcast. Good morning, It's Friday, the third of October. I'm Caroline Hepkitt in London.
And I'm Stephen Caroline Brussels. Coming up today. Police patrols are stepped up at synagogues across the UK following a fatal terror attack in Manchester.
Flights are suspended at Munich Airport after multiple drone sightings, adding to security concerns in Europe.
Plus, looking to sweeten the deal for investors, we'll bring you the story of the secretive Swiss chocolate maker plotting its billion dollar comeback.
Let's start with a roundup of our top stories.
UK counter terrorism police have named a British citizen of Syrian descent as the perpetrator of an attack on a synagogue that killed two people. Thirty five year old Gihad al Shamy carried out the attack on Heaton Park Hebrew Congregation Synagogue in Manchester yesterday. I'll Shami entered the UK as a young child and was granted British citizenship in two thousand and six. The Prime Minister Kirs Starmer called the killings a terrorist attack. That attacked Jews because they are Jews.
On behalf of our country.
I express my solidarity but also my sadness.
But you still have to live with these fears. Nobody should have to do that.
Kir Starmer also promised extra protection for Jewish communities across the UK. Two men died and three others sustained serious injuries during the assault on the temple where worshippers were gathered for Young Kapor, the holiest day in the Jewish calendar. Police said the attacker drove a vehicle at people outside the synagogue and then attacked them with a knife before
being shot dead by officers. He wore a vest that police said had the appearance of an explosive device, but was later found not to be viable now.
In other news, Munich Airport has suspended flight operations after several drone sightingsfecting thousands of passengers at Germany's second busiest hub. Seventeen flights were grounded and fifteen arrivals diverted to nearby cities. It follows similar incidents in Denmark and Norway. Recent incursions into European airspace have prompted European leaders to discuss building a drone wall.
Here's Danish Prime.
Minister Meta Friedrichsen speaking at their summit in Copenhagen.
We have to build a much stronger European defense and of course also respond to hybrid threats that we face. One part of this response will be to strengthen our defense against drones, to increase our own drone production, and it has to be in very close cooperation with you.
In Ukraine, Danish Prime Minister Meta Friedrichsen speaking that alongside Ukraine's v Lodomi Zelenski, several incursions in to NATO airspace last month were attributed to Russia. That it remains unclear if the events in Oslo, Copenhagen and Munich are connected. Moscow has denied all accusations of breaching the alliance's airspace.
The US President Donald Trump is weighing slashing thousands of federal jobs. The news comes ahead of a meeting with his budget director Russell Vote, as the White House pressures Democrats to end the government shut down. Press Secretary Carolyn Levett told reporters the cuts will be focused on agencies that don't align with the administration's values.
It's likely going to be in the thousands. It's a very good question, and that's something that the Office of Management and Budget and the entire team at the White House here again is unfortunately having to work on today. These discussions, in these conversations, these meetings would not be happening if the Democrats had voted to keep the government open, the White.
House's Caroline Leviatt speaking there. Her comments came after the President described on social media what he'd called Democrat agencies, most of which are a quote political scam. The Congressional Budget Office estimates that about seven hundred and fifty thousand employees are being furloughed during the show down, at a cost of four hundred million dollars per day in last compensation.
Bridgewater Associates flagship Macro fund climbed twenty six point four percent in the first nine months of the year on the back of tariff fueled market uncertainty. Bloomberg understands that the hedge fund is now on track for its biggest gain since twenty ten. Hedge funds overalls have posted strong gains this year, aided by surging US shares and volatility in bonds and currency markets.
The launch of Boeing's latest plane is set to be delayed. The hold up could result in billions of dollars and extra charges. Bloomberg's Tea Adebaio has more.
Already six years late. Boeing's new seven seven seven X won't join its feet until twenty twenty seven. Bloomberg understands that some of the manufacturer's biggest customers are already making plans for a further delay. According to analyst estimates, the cost of this latest setback could run from two point five five billion to as much as four billion dollars.
The jet is of major strategic and financial importance to the firm, especially as part of its battle with rival Airbus for a bigger slice of the lucrative long haul market. A Boeing spokeswoman declined to comment, citing a quiet period ahead of earnings in London.
To you at Abayo Bloomberg Radio.
Italy has approved a budget that cuts the deficit to three percent of GDP this year, bringing the country within the EU's fiscal rules for the first time since twenty nineteen. The deficit is projected to shrink to two point eight percent in twenty twenty six and keep falling in the following years. The plan opens the door to Italy exiting the EU's budget monitoring regime, which could then allow Prime Minister Georgia Maloney space for tax cuts and more defense spending.
Picta's fixed Incomes Tracus Laurelin Reno Chatelein told Bloomberg Radio that France and other European countries have lessons to learn from Italy.
There is this commitment at the political level that they want to put in some reforms, that they don't want to strange themselves from Europe, even though you have this populist vibe a bit still from Meloni. But I think overall what we've learned is really political stability is very good for business. It's very good also for markets, and I think that's also a template that maybe we'll need to have in the rest of Europe and in particular in France.
Picta Is laure Lein Veno Chatlin speaking as uncertainty ever France's budget continues. French Prime Minister Sebastia and Lacone is holding meetings with lawmakers from different parties today as he tries to build support for a spending plan.
Those are top stories on the markets. The MSCIS specific index is up by four tenths of one percent. Today we are seeing Japanese shares powering ahead, up by one point seven percent, largely being lifted by technology shares. European stock few are higher two tenths of one percent at the moment for eurostocks fifty, the dollar is trading a tenth of one percent stronger. The euro is at one seventeen seventeen against the dollar.
So those are the markets. In a moment.
We will have the latest on the investigation into the attack in Manchester. Plus we will bring you a story about Switzerland's most shorted stock. But there is another story that we've been reading about this morning, and I really learned something new, Stephen, from this, and I really enjoyed the images in this the vulnerability of undersea cables that connect the world. Bloombo's got a fantastic written story, but I think the illustrations allow you to really understand the power of this.
Yeah, I mean, if you think about it, nearly all global Internet traffic, so military communications, ten trillion dollars, and daily financial transactions all flow through the subsea cables. So our team has been looking in particular at how regular cable cutting incidents off Taiwan have exposed the risks the network faces. We of course remember this off Denmark as well being a question too, and there are warnings in the piece that governments are years behind the curve and
protecting this infrastructure too. And what this piece really exposes is first of all, who controls the cables in different places. There's four companies that mainly make them at the moment, but also how you can trace the roots of how these cables connect different parts of the world. There's cables owned by a Chinese company that avoid India, for example. There are you know, geopolitical factors involved in how this
network is created. Companies are also becoming more alive to this meta, for example as building its own version of subse cables too. So look, it's a really interesting illustration of what could potentially be yet another risk in the rosing geopolitical tensions, particularly if we think about the US and China. Really recommended it's called Two Cables and the Hidden Subsea Battle between US and China. You'll find it on Bloomberg dot com and we'll put a link to it on our show notes.
Well, let's bring you more now on the on a synagogue in Manchester yesterday in which two people were killed. A British citizen of Syrian origin has been named as the attacker. He was shot dead by police. Are UK Politics who reported James Walcock joins US Now for more on this. James, what is the latest today that we are hearing on the investigation?
Calln Police are still looking to the motives, but they and the Prime Minister are declaring this a terrorist incident. They have named Jahad al Shami, who is a thirty five year old British citizen of Syrian descent, as the perpetrator, and they have arrested three people, two men in their thirties and a woman in her sixties, on suspicion of the Commission Preparation and Instigation of Acts of terrorism.
James, how has the government responded to this? Kiss Starmer.
The Prime Minister flew back cut short a trip to Copenhagen to visit in London Synagogue, and he says that this act was committed by a vile individual who attacked Jews because they are Jews and attack Britain because of its values. He continues to say that hatred against Jews is rising once again and Britain must defeat it once again, and he adds that I promise over the coming days you will see the other Britain, the Britain of compassion,
of decency and of love. He has vowed a police response and indeed police have increased presence at synagogues across the country. I was looking up the Community Security Trust, which is a UK charity that tracks and combats anti Semitism, say it is the first fatal incident targeting Jewish people
in the UK in at least thirty years. You've also seen unanimous statements across the political spectrum from Reform UK's Nigelfrag, the Greens Jack Polanski, who is Jewish himself, the Conservative Kaomie Badenoch, who are all condemning the attack, expressing their horror that it has taken place and saying is antithetical British values. I would note, just in addition to this, clearly in the back of the mind of down Street
is the riots from last year in July. If you look at the feed of the response, the speed at which Starmer and the Prime Minister returned to the country, and also which Andy Burnham, the Mayor City Calumay of London and Shabana moved. The Home Secretary were on the scene. There is clearly intent to try and get ahead of any future spiraling, which we see in the morning, that the police are concerned about the fear of copycat attacks.
Britain's Jewish community have been on alert for the last two years about incidents around and of anti Semitism, since the October seventh attacks in Israel. The wider reaction then to this attack. I mean, it's rare to see terrorist attacks in Britain and this is a very serious one.
The last time we saw terror attack to this nature, especially isthmus lated ones, was twenty seventeen. But the current no secret that there had been fears and the security services for a number of times, like the number of months now that the events in Gaza may spill over
into the UK's public order. I mean Ken McCallum, the Director General of the UK's Domestics Service Domestic Security m I five, warned last year that there were security implications from Gaza, but last month Kirstarmus said the UK would recognize Palestine's statehood and that has also led to concerns about how this conflict increases the tensions in Britain's political debates.
It's worth adding that from the religious community, there has been unanimous combin nations attack and I want to read out what Im Kassim kari Asim, who's the co chairman of the British Must Network said, because he said, this bloodshed and violence in the Middle East, which is exclusionating, is crusually even painful to witness. For all of us must not be allowed to poison our streets in Britain.
So there has been a broad condemnation of the attack, but it has also led to fears from the police who've asked organized of a mass processes Saturday against the Baron Pawers and actions be postponed while they divert resources to protect both Jewish and Muslim communities after the terror attack.
Okay, James Wilcock, our UK Pultrick supporter, thank you, stay with us. More from Bloomberg Daybreak Europe coming up after this now.
The Swiss chocolate maker Barry Cable is positioning itself for a turnaround after its stock and nearly halved in value. It's the world's largest cocoa processor, but it's also Switzerland's most shorted stock, so we wanted to bring you more on this story with our Switzerland reporter Paula Dneki.
Good morning, thanks for being with us.
Barry Cable is a big player in the global chocolate industry.
Is not a household name though.
Tell us a bit about the origins of this business.
It's really interesting because it used to belong to a German that went to Switzerland and it was called Yacrops and it was a chocolate and coco company. And then he went through a few alterations actually and eventually merged Barry the chocolate process unit with the firm of Calibo. So now it is the biggest chocolate processor and cocoa bean's buyer and it literally produces everything from bean to bar and sells the ingredients along the value chain two
different companies which are indeed household names. So it's fair to assume that there is a bit of Verry Cali chocolate and almost every chocolate you buy.
Why has the stock come under such pressure product?
I mean, we have seen we have seen a huge cocoa price rally, which was very painful for Barry colib out because they had their buying of chocolate, so those bets became very costly. When price is searched, and then at the same time, the company announced a turnaround, like an internal turnaround, shortly before a price is started to rise. So it is like it was attacked from the outside, it changed things at the inside, and then like it has a unique position in the market because people don't
know it. It's not a consumer brand, but it has this exposure to the commodity prices. So yeah, that's why companies like lind for example, found it much easier to pass on those high prices to consumers, whereas Berry Calivart had to convince its industrial customers that they have to pay those higher prices now.
And briefly, there's a big question mark then and maybe about the future of the company and how it addresses these challenges.
This is really what the CEO, Pitterfel, taught us what he's trying to do at the moment. He wants to put the company on a much stronger footing for the future. He does not believe in the way that coco, that the cocoa industry has operated for the longest time.
It is really.
Still like fractured.
Industry with many producers of coco that it's hard to sell and he thinks now is the time because the prices are going up where those producers will have the means to collect device basically to have much wider yards and acres and produce coco much more efficiently because now they can invest.
This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Street and beyond.
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I'm Caroline Hepka.
And I'm Stephen Carroll. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak Europe