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German Far Right Win, Deadly Amazon Plane Crash, Spiraling Borrowing Costs | Bloomberg Daybreak:...

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Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Daybure podcast. Good morning. It's Monday the 7th of September. I'm Caroline Hepka in London.

And I'm Steven Carol in Brussels. Coming up today, a far-right breakthrough. Germany's AFD doubles its support in a key state election as the party falls just short of an outright majority. An Amazon cargo plane overruns the runway in Miami, bursting into flames and killing at least five people.

Plus, in a barns bind, soaring energy prices and growing political risks drive spiraling borrowing costs across Europe.

Let's start with a roundup of our top stories.

The farright alternative for Germany has scored its best ever result in a state election. The AFD won almost 44% of the vote in Saxony Anhalt, more than doubling its support. The party campaigns to halt migration, roll back climate policies, and restore relations with Russia. Here is the AFD's lead candidate, Olrich Zebund, speaking to supporters after the result in the east of Germany.

Dear friends, this evening is historic. We have made history. We are taking our country back. It starts here in Saxony Panhal.

Ziggman said the result could provide the foundation for Germany's first AfDled state government. However, they fell short of a majority and the other parties have not indicated they're willing to govern with the AFD.

Well, the AFD's surge in Germany has come even as the party has been increasingly isolated from some of Europe's other far-right groups. Germany's federal counterintelligence agency says that more AFD officials have openly embraced remigration or largecale expulsions. Marine Le Pen's National Rally ended cooperation with the AD in 2024 after remarks by one of its lawmakers about members of the Nazi SS. National Rally President Jordan Bardella spoke to Bloomberg over the weekend.

His words are spoken by a translator.

You know, because our positions with that political party became too divergent. We were led to break our political ties. But I note that under electoral pressure from the AFD in Germany today, Chancellor Mertz's government has been pushed to restore border controls, recognizing the significance of migration, which is the greatest challenge Europe will face in the coming decades. And it poses a risk to our European societies of disappearance.

Disappearance of their culture, disappearance of their identity, disappearance of their language, of their traditions. We must protect our culture and our identity. And is clear that the rise of patriotic parties in Europe is awakening an awareness of this which I welcome.

Thank you.

Jordan Bardella speaking for a translator. He also told Bloomberg that France should rethink its support for Ukraine, arguing that Kee should offer something in return for European military assistance.

Russia's foreign minister Sergey Lavrov has accused Germany of wanting war with Moscow. Quote, "Again, it comes after Berlin ordered the closure of Russia's consulate in Bon and of the Russian House Cultural Center. Germany blames Russia for an explosive laden drone that was discovered at Leipig airport last month. Russia has denied that claim." Nav says Berlin is acting without definitive evidence.

Some kind of crashed drone was found in Leipzig, Germany at the airport. They decided that the drone resembled those used by the Russian Federation. They cannot confirm that this is a definitive conclusion.

In comments published on Telegram by Russian state TV channel Vestie, Lavrov went further, saying the closures mark what he called the beginning of a real war. Moscow has been ramping up its confrontational rhetoric as part of a campaign to increase pressure on the West. The Kremlin says it will close Russian branches of Germany's Guta Institute in retaliation. US envoys Steve Witchoff and Jared Kushner met Ukrainian President Vladimir Zalinski in Kev on Sunday to discuss a way to end Russia's war in Ukraine.

It came after the pair met with President Putin in Moscow for 3 hours on Saturday. Witchkov says that those talks made progress and produced new ideas which they brought to Kev. I would say that we've had very meaningful discussion, substantive, important, and we are very encouraged and we look forward to uh continuing this day as long as it takes.

Steve Witkov speaking there on Sunday. Zullinsky declined to elaborate on those ideas, but says that the talks also covered a post-war prosperity plan for Ukraine. UK, French, and German national security chiefs later joined the discussions with further talks now planned. The Kremlin signaled no intention after Saturday's talks to back away from its military goals in Ukraine. Iran and the United States carried out their largest tanker strikes yet over the weekend.

The tit fortat attacks pushed oil prices higher as both countries continued to escalate the six-month war. Iran said it hit three US-l ships taking an unauthorized route through the straight of Hormuz in retaliation for American attacks on Iranian tankers. Bloomberg's John Herskovitz explains it marks an escalation because commercial and energy shipping are increasingly becoming a direct target. The strike suggests the conflict is settling into a cycle of retaliation that could be tough to break.

And for the energy markets themselves, the actual loss of the three tankers is not the big thing, but the broader threat to oil through flows through the trade of Hormuz is.

Bloomberg editor John Herskov speaking to CNN yesterday. US energy secretary Chris Wright signals there would be no letup in the American naval presence. While Iran's top security official said a new restricted zone will be declared outside the straight of Warmuz in the coming days. That's according to Press TV. Brand crude is trading 1% higher this morning at $97.30.

Now in other news, five people are dead and five others injured after an Amazon cargo plane overshot the runway while attempting to land yesterday. The incident took place at Miami International Airport as the jet arrived from Puerto Rico and slammed into multiple vehicles near the airport, trapping some inside. According to the Miami Dade Fire Rescue Service, the city's fire chief says the crews were on the scene within seconds.

The airplane did strike a couple of vehicles. Couple of uh victims are actually trapped in the vehicles. In addition to that, we had a very complex fire engine compartments that were on fire, including a search and rescue of the pilot and co-pilot that were trapped in this aircraft.

Miami's fire chief Ray Jadala speaking there. Amazon confirmed that one of its planes operated by 21 Air experienced an incident when it attempted to land. The FAA says that it will investigate the collision and the US National Transportation Safety Board said that it is also starting a probe and will hold a media briefing today.

Greater Manchester has become a standout in Britain's sluggish economy and its former mayor is now prime minister. Auntie Bernham wants to take the region's growth model nationwide with Chancellor John Healey setting out the plans later this morning. Bloomberg's TA Adobay reports.

Greater Manchester is forecast to grow 1.7% a year through 2030, outpacing other major English regions. Burnham says giving local leaders more economic power helped attract investment and development to Greater Manchester. Healey will announce 150 million pounds for northern firms and plans to use public finance to bring in more private investment. The challenge is doing that while maintaining fiscal discipline with rising bond yields adding to Britain's debt costs in London.

Ta Adabio, Bloomberg Radio. And those are a few of our top stories. Let's look at the markets now. European stock futures this morning lower down almost 210 of 1% for the US stocks 50 futures. Uh we're going to be watching German bond yields closely after the gains for the AFD party in Germany over the weekend. We

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