1
00:00:00,160 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,880 --> 00:00:12,880
Speaker 2: This is the Bloomberg Day BAQ podcast, available every morning

3
00:00:12,880 --> 00:00:15,680
Speaker 2: on Apple, Spotify or wherever you listen. It's Monday, the

4
00:00:15,720 --> 00:00:19,160
Speaker 2: twenty first of July in London. I'm Caroline Hepka. Coming

5
00:00:19,239 --> 00:00:23,200
Speaker 2: up today, the EU plans its tariff response as the

6
00:00:23,239 --> 00:00:26,360
Speaker 2: prospect of a US trade deal begins to dim. The

7
00:00:26,400 --> 00:00:30,800
Speaker 2: London Stock Exchange reportedly considers options to allow twenty four

8
00:00:30,840 --> 00:00:36,559
Speaker 2: hour trading. Plus suffering from self inflicted injuries, Elon Musk's

9
00:00:36,600 --> 00:00:41,360
Speaker 2: empire creaks under the strain of his ongoing antics. Let's

10
00:00:41,360 --> 00:00:44,360
Speaker 2: start with a roundup of our top stories. Bloomberg understands

11
00:00:44,400 --> 00:00:46,760
Speaker 2: that EU officials will meet in the coming days to

12
00:00:46,840 --> 00:00:50,440
Speaker 2: discuss how to respond to a possible no deal trade

13
00:00:50,440 --> 00:00:54,120
Speaker 2: scenario with President Trump. The move comes as the US

14
00:00:54,200 --> 00:00:56,960
Speaker 2: is said to be seeking tariffs on EU goods higher

15
00:00:57,000 --> 00:01:01,920
Speaker 2: than ten percent with limited exception. However, speaking to CBS's

16
00:01:01,960 --> 00:01:05,160
Speaker 2: Faced the Nation, the Commerce Secretary Howard Lutnik said that

17
00:01:05,319 --> 00:01:07,520
Speaker 2: negotiations were going well.

18
00:01:08,360 --> 00:01:11,080
Speaker 3: I am confident we'll get a deal done okay, and

19
00:01:11,120 --> 00:01:14,840
Speaker 3: it will be great for America because the president has

20
00:01:15,120 --> 00:01:17,880
Speaker 3: the back of America. So I think all these key

21
00:01:17,920 --> 00:01:20,959
Speaker 3: countries will figure out it is better to open their

22
00:01:21,120 --> 00:01:24,080
Speaker 3: markets to the United States of America than to pay

23
00:01:24,120 --> 00:01:25,400
Speaker 3: a significant.

24
00:01:24,840 --> 00:01:30,119
Speaker 2: Tarret Secretary Lutnik speaking there as EU states consider activating

25
00:01:30,160 --> 00:01:34,000
Speaker 2: the block's most powerful trade tool, that's so called Anti

26
00:01:34,040 --> 00:01:37,360
Speaker 2: Coercion Instrument in the event of no deal ahead of

27
00:01:37,400 --> 00:01:41,240
Speaker 2: the first of August deadline. The ACI would grant officials

28
00:01:41,360 --> 00:01:46,480
Speaker 2: broad powers to take retaliatory action, including new taxes on

29
00:01:46,760 --> 00:01:53,320
Speaker 2: US tech giants and restrictions on US investments in the EU. Now,

30
00:01:53,360 --> 00:01:58,279
Speaker 2: the lack of sustained progress on a US EU trade

31
00:01:58,320 --> 00:02:03,320
Speaker 2: deal comes as Bloomberg Economy calculates the likely impact of tariffs,

32
00:02:03,480 --> 00:02:07,920
Speaker 2: which are now at their highest rate since nineteen thirty nine,

33
00:02:08,320 --> 00:02:10,680
Speaker 2: with more his Bloomberg's Chris Pitt.

34
00:02:11,120 --> 00:02:15,680
Speaker 1: With the average US levey on overseas good exceeding thirteen percent,

35
00:02:16,280 --> 00:02:20,880
Speaker 1: Bloomberg Economics projects that President Trump's global trade war will

36
00:02:21,000 --> 00:02:25,119
Speaker 1: likely result in a two trillion dollar hit to global

37
00:02:25,200 --> 00:02:29,840
Speaker 1: GDP by the end of twenty twenty seven. China accounts

38
00:02:29,840 --> 00:02:33,280
Speaker 1: for about half the downgrade, with the country's growth now

39
00:02:33,400 --> 00:02:36,600
Speaker 1: forecast to be just four point four percent next year.

40
00:02:36,880 --> 00:02:41,639
Speaker 1: Bloomberg Economics has also lowered its twenty twenty five, USGDP

41
00:02:41,840 --> 00:02:45,840
Speaker 1: forecast to one point five percent, down from two point

42
00:02:45,880 --> 00:02:49,920
Speaker 1: one percent in December. Meanwhile, the UK is expected to

43
00:02:50,040 --> 00:02:54,840
Speaker 1: continue posting sluggish growth, with GDP projected to rise by

44
00:02:55,000 --> 00:02:58,160
Speaker 1: just one point two percent this year and one point

45
00:02:58,280 --> 00:03:02,799
Speaker 1: one percent next year. In London Chris Pitt Bloomberg Radio.

46
00:03:03,560 --> 00:03:07,560
Speaker 2: Japanese Prime Minister Shigero Issuba says that he intends to

47
00:03:07,639 --> 00:03:11,639
Speaker 2: stay on despite his ruling coalition suffering a historic setback

48
00:03:11,960 --> 00:03:17,080
Speaker 2: in Sunday's Upper House election. Japanese public broadcaster NHK reports

49
00:03:17,120 --> 00:03:20,799
Speaker 2: that the ruling Liberal Democratic Party, along with its longtime

50
00:03:20,919 --> 00:03:24,800
Speaker 2: partner the Kometo Party, failed to retain a majority in

51
00:03:24,800 --> 00:03:28,760
Speaker 2: the Upper House. Eurasia Groups Director of Japan in Asia

52
00:03:28,800 --> 00:03:32,120
Speaker 2: Trade David Bowling says that the results follow a broader

53
00:03:32,240 --> 00:03:33,639
Speaker 2: trend at the ballot box.

54
00:03:34,520 --> 00:03:38,120
Speaker 4: The big message from this election has been inflation and

55
00:03:38,160 --> 00:03:40,840
Speaker 4: it kills incumbents, and we saw that happen in last

56
00:03:40,840 --> 00:03:43,080
Speaker 4: October in the election, and this is sort of the

57
00:03:43,120 --> 00:03:47,160
Speaker 4: second punch that Ashiba has taken. I think it's very hard.

58
00:03:47,240 --> 00:03:49,920
Speaker 4: He was already on shaky ground. He's even on more

59
00:03:49,960 --> 00:03:52,760
Speaker 4: shaky ground to remain as prime Minister.

60
00:03:53,920 --> 00:03:57,080
Speaker 2: David Bowling of Eurasia groups speaking there as traders grow

61
00:03:57,120 --> 00:04:01,440
Speaker 2: increasingly concerned that further weakening of issuea's leadership could push

62
00:04:01,480 --> 00:04:04,960
Speaker 2: the Coalition to make concessions to the opposition, including cuts

63
00:04:05,000 --> 00:04:09,520
Speaker 2: to the sales tax. Investors skepticism over lawmaker's ability to

64
00:04:09,640 --> 00:04:13,320
Speaker 2: rain in spending is one factor helping to drive yields

65
00:04:13,360 --> 00:04:16,280
Speaker 2: on Japanese debt to their highest levels in more than

66
00:04:16,320 --> 00:04:20,320
Speaker 2: two decades. Reports suggests that the London Stock Exchange is

67
00:04:20,400 --> 00:04:23,880
Speaker 2: considering the introduction of twenty four hour trading in response

68
00:04:23,920 --> 00:04:28,120
Speaker 2: to growing demand from retail investors. According to the Financial Times,

69
00:04:28,240 --> 00:04:31,840
Speaker 2: NC Group is examining the practicalities of the move, including

70
00:04:31,880 --> 00:04:36,360
Speaker 2: the technology and regulatory implications. The development comes as exchanges

71
00:04:36,400 --> 00:04:40,160
Speaker 2: around the world consider expanding their trading windows, driven by

72
00:04:40,160 --> 00:04:44,280
Speaker 2: a surge in individual investors trading via smartphones. The New

73
00:04:44,320 --> 00:04:48,120
Speaker 2: York Stock Exchange, the NASADAC and the CBOE Global Markets

74
00:04:48,160 --> 00:04:52,440
Speaker 2: have all applied in recent months to extent their trading hours.

75
00:04:53,120 --> 00:04:56,560
Speaker 2: Here in the UK, home sellers are slashing prices at

76
00:04:56,560 --> 00:04:59,920
Speaker 2: a record pace. That's according to new data from right Move,

77
00:05:00,400 --> 00:05:03,000
Speaker 2: which says that the market is responding to high supply

78
00:05:03,200 --> 00:05:06,960
Speaker 2: and buyer discernment. Bloomberg's teabat ad A Baio has.

79
00:05:06,800 --> 00:05:10,400
Speaker 5: More a decade high number of properties for sale has

80
00:05:10,480 --> 00:05:13,120
Speaker 5: tipped the scale in favor of buyers in some of

81
00:05:13,160 --> 00:05:18,040
Speaker 5: the UK's most expensive areas. The average asking price dropped

82
00:05:18,080 --> 00:05:21,240
Speaker 5: one point two percent to just over three hundred and

83
00:05:21,320 --> 00:05:25,200
Speaker 5: seventy three thousand pounds this month, the biggest drop ever

84
00:05:25,320 --> 00:05:26,440
Speaker 5: seen during a July.

85
00:05:26,680 --> 00:05:27,800
Speaker 6: According to right Move.

86
00:05:28,600 --> 00:05:31,640
Speaker 5: It's a trend that chimes with recent industry data, which

87
00:05:31,720 --> 00:05:34,640
Speaker 5: points to home price is calling since a tax cut

88
00:05:34,680 --> 00:05:38,800
Speaker 5: for buyers expired in April. The shift comes as mortgage

89
00:05:38,880 --> 00:05:42,719
Speaker 5: rates are also edging down. Data from moneyfac shows that

90
00:05:42,760 --> 00:05:46,159
Speaker 5: the average two year fixed mortgage rate has fallen since

91
00:05:46,200 --> 00:05:48,960
Speaker 5: the start of the year. In London, Tea were at

92
00:05:49,000 --> 00:05:50,320
Speaker 5: a bio Bloomberg Radio.

93
00:05:51,520 --> 00:05:55,000
Speaker 2: So that's the housing market now. To some sports news,

94
00:05:55,120 --> 00:05:58,119
Speaker 2: World number one golfer Scotti Chefler says he has worked

95
00:05:58,120 --> 00:06:01,520
Speaker 2: his whole life to lift the Claret jug After winning

96
00:06:01,560 --> 00:06:05,240
Speaker 2: the Open in imperious fashion the American clinch day four

97
00:06:05,279 --> 00:06:09,839
Speaker 2: shot victory, finishing seventeen on depart at Royal Port Rush,

98
00:06:09,960 --> 00:06:14,400
Speaker 2: Scheffler is now just one major title away from completing

99
00:06:14,440 --> 00:06:17,800
Speaker 2: a so called career Grand Slam, but he says that

100
00:06:17,800 --> 00:06:19,640
Speaker 2: that isn't on his radar.

101
00:06:20,760 --> 00:06:22,880
Speaker 7: It would obviously be very cool, but that's not what

102
00:06:22,960 --> 00:06:24,040
Speaker 7: motivates me at the end of the day. You know,

103
00:06:24,040 --> 00:06:25,400
Speaker 7: I'm just trying to get the most out of myself

104
00:06:25,440 --> 00:06:27,359
Speaker 7: and you know, looking forward the challenge of you know,

105
00:06:27,400 --> 00:06:29,839
Speaker 7: continuing to play professional golf, and you know, every week

106
00:06:29,880 --> 00:06:31,159
Speaker 7: is different, and you know, this week I was the

107
00:06:31,160 --> 00:06:33,000
Speaker 7: best player. But you know the beauty is you know,

108
00:06:33,000 --> 00:06:34,280
Speaker 7: we got to teat up in Memphis again in a

109
00:06:34,279 --> 00:06:36,039
Speaker 7: couple of weeks and we start all over back and even.

110
00:06:35,839 --> 00:06:40,280
Speaker 2: Pore Scheffler achieved his second major victory of the year

111
00:06:40,400 --> 00:06:43,760
Speaker 2: as the home crowd favorite. Rory McElroy had to settle

112
00:06:43,800 --> 00:06:47,560
Speaker 2: for a share of seventh place at ten underpart, one

113
00:06:47,640 --> 00:06:52,919
Speaker 2: stroke behind England's Matt Fitzpatrick. So that is a roundup

114
00:06:53,000 --> 00:06:55,200
Speaker 2: of our top news stories this morning. In terms of

115
00:06:55,240 --> 00:06:58,280
Speaker 2: the markets, so the Japanese yen had strengthened as much

116
00:06:58,279 --> 00:07:01,359
Speaker 2: as seven tenths of one percent. It's now up about

117
00:07:01,400 --> 00:07:04,359
Speaker 2: three tenths of one percent. That's the main reaction to

118
00:07:04,440 --> 00:07:07,880
Speaker 2: Sunday's election in Japan. Because the markets more broadly are

119
00:07:07,880 --> 00:07:10,080
Speaker 2: closed in Japan for a holiday, so there's also no

120
00:07:10,200 --> 00:07:13,360
Speaker 2: cash the treasuries trading in Asian hours. In terms of

121
00:07:13,400 --> 00:07:17,040
Speaker 2: stock futures this morning, you've got US stop futures pulsive

122
00:07:17,080 --> 00:07:18,680
Speaker 2: up about a tenth of one percent, for the S

123
00:07:18,720 --> 00:07:21,160
Speaker 2: and P five hundred USOX fifty futures that are down

124
00:07:21,200 --> 00:07:23,400
Speaker 2: a quarter of one percent in a very important week

125
00:07:23,440 --> 00:07:27,040
Speaker 2: full of data and ECB rate decision this week. In Europe,

126
00:07:27,400 --> 00:07:30,240
Speaker 2: Ryanair's first quarter profit also coming in as a beat

127
00:07:30,280 --> 00:07:32,800
Speaker 2: eight hundred and twenty million euros, and then looking at

128
00:07:32,800 --> 00:07:36,880
Speaker 2: the euro this morning, a trading also slightly firm against

129
00:07:36,920 --> 00:07:40,400
Speaker 2: a weeker dollar at one sixteen thirty two. So those

130
00:07:40,400 --> 00:07:42,280
Speaker 2: are the main data points in the markets. In a moment,

131
00:07:42,320 --> 00:07:46,440
Speaker 2: we're going to bring you the latest on the EU's

132
00:07:46,600 --> 00:07:51,520
Speaker 2: potential tariff retaliatory package, the plan being worked on, and

133
00:07:52,040 --> 00:07:55,960
Speaker 2: our deep dive reporting around Elon Musk and his businesses

134
00:07:56,520 --> 00:08:01,440
Speaker 2: who are still suffering fallout from the brief unity between

135
00:08:01,520 --> 00:08:04,400
Speaker 2: Musk and Trump that of course has broken down recently,

136
00:08:04,880 --> 00:08:07,560
Speaker 2: so we'll get into that in a moment. But there's

137
00:08:07,600 --> 00:08:10,760
Speaker 2: also another story that caught my attention this morning. Like

138
00:08:10,880 --> 00:08:16,160
Speaker 2: all the best ips, intellectual property in full alien is

139
00:08:16,240 --> 00:08:20,160
Speaker 2: now an entertainment franchise, and with it comes Last year

140
00:08:20,200 --> 00:08:22,600
Speaker 2: is Alien Romulus, and in the next few weeks a

141
00:08:22,600 --> 00:08:26,360
Speaker 2: new series from FX called Alien Earth Boombo Business weeks.

142
00:08:26,480 --> 00:08:29,480
Speaker 2: Esther Zuckerman has been writing about this because she got

143
00:08:29,480 --> 00:08:33,160
Speaker 2: to speak to the series creator, Noah Hawley fantastic interview.

144
00:08:33,240 --> 00:08:36,760
Speaker 2: I love how she points out that it's not the giant, drooling,

145
00:08:37,000 --> 00:08:40,480
Speaker 2: parasitic monsters in the movie that are the real villains.

146
00:08:40,480 --> 00:08:44,360
Speaker 2: The fiend is the faceless conglomerate, the company pulling the strings.

147
00:08:44,360 --> 00:08:47,640
Speaker 2: And so in this new series, which apparently might actually

148
00:08:47,640 --> 00:08:53,400
Speaker 2: stretch to multiple season, the action is about when billionaires

149
00:08:53,559 --> 00:08:56,679
Speaker 2: become trillionaires. They have more power than government, and it's

150
00:08:56,720 --> 00:09:01,959
Speaker 2: about five corporations battling it out for power. Polly wanted

151
00:09:02,000 --> 00:09:05,560
Speaker 2: to consider what happens when you take the aliens out

152
00:09:05,679 --> 00:09:09,560
Speaker 2: of Alien. I'm really hoping that this season does what

153
00:09:09,600 --> 00:09:12,720
Speaker 2: the best entertainment does these days, which is build worlds

154
00:09:12,760 --> 00:09:15,560
Speaker 2: that please the new audience but also please the die

155
00:09:15,640 --> 00:09:18,040
Speaker 2: hard fans. So they kind of weave old stories and

156
00:09:18,120 --> 00:09:23,439
Speaker 2: law into new creations. In short, I'm hoping for tough characters,

157
00:09:23,480 --> 00:09:26,360
Speaker 2: some alien hunting, no gore, and maybe a new kind

158
00:09:26,400 --> 00:09:29,040
Speaker 2: of mech We'll have to see anyway. It's one story

159
00:09:29,040 --> 00:09:32,200
Speaker 2: that I was thinking about today. What's coming your way

160
00:09:32,200 --> 00:09:34,840
Speaker 2: in terms of entertainment. I'm going to put a link

161
00:09:35,160 --> 00:09:37,520
Speaker 2: in our show notes to that story if you're an

162
00:09:37,559 --> 00:09:40,800
Speaker 2: alien fan like me. Right, let's think about what's happening

163
00:09:40,800 --> 00:09:44,800
Speaker 2: here in the EU. What is going to happen if

164
00:09:44,800 --> 00:09:48,440
Speaker 2: the European Union doesn't secure a negotiated deal with President

165
00:09:48,440 --> 00:09:52,400
Speaker 2: Trump over tarifs. EU envoys are meeting to further their

166
00:09:52,559 --> 00:09:56,480
Speaker 2: response plan. Meanwhile, in Germany, the chance of Friedrich Mertz

167
00:09:56,720 --> 00:10:00,480
Speaker 2: is also hosting an investment summit with dozens of companies

168
00:10:00,640 --> 00:10:04,080
Speaker 2: who expected to pledge hundreds of billions of euros of

169
00:10:04,120 --> 00:10:07,800
Speaker 2: investment tied to certain government reforms. Joining US now has

170
00:10:07,800 --> 00:10:11,400
Speaker 2: been big Oliver Cook in Berlin, Good morning, Orlie. Negotiations

171
00:10:11,400 --> 00:10:14,559
Speaker 2: between Brussels and Washington expected to continue for the next

172
00:10:14,600 --> 00:10:17,360
Speaker 2: couple of weeks. What level and scope of tariffs though,

173
00:10:17,559 --> 00:10:19,560
Speaker 2: is the US now looking at?

174
00:10:19,679 --> 00:10:21,720
Speaker 8: Yeah, well, that's a question I think everybody would like

175
00:10:21,760 --> 00:10:24,800
Speaker 8: the answer to, not least of whom the negotiators on

176
00:10:24,840 --> 00:10:27,000
Speaker 8: the European side, because I think at this stage they

177
00:10:27,040 --> 00:10:29,640
Speaker 8: really still don't entirely know what the United States is

178
00:10:29,679 --> 00:10:31,800
Speaker 8: going to do and what is in Donald Trump's mind

179
00:10:32,000 --> 00:10:34,480
Speaker 8: two weeks from now. Remember the deadline that is coming

180
00:10:34,559 --> 00:10:37,320
Speaker 8: up is August the first, That is the Friday after next,

181
00:10:37,360 --> 00:10:40,360
Speaker 8: and that is when you get thirty percent tariffs theoretically

182
00:10:40,640 --> 00:10:43,000
Speaker 8: that kick in on all EU goods. And remember this

183
00:10:43,040 --> 00:10:45,440
Speaker 8: is super important for everybody because this is the biggest

184
00:10:45,440 --> 00:10:48,320
Speaker 8: trading relationship in the world between the United States and

185
00:10:48,360 --> 00:10:50,120
Speaker 8: the EU. It's more than a trillion dollars worth of

186
00:10:50,160 --> 00:10:52,120
Speaker 8: trade that goes in both directions. And I think the

187
00:10:52,120 --> 00:10:54,840
Speaker 8: frustration so far, I mean, certainly from a journalistic standpoint,

188
00:10:54,880 --> 00:10:56,560
Speaker 8: is there has not been a lot of clarity on

189
00:10:56,600 --> 00:10:58,680
Speaker 8: where they are in negotiations. There have been, of course,

190
00:10:58,800 --> 00:11:01,199
Speaker 8: lots of different levels of talks to try to get

191
00:11:01,200 --> 00:11:04,480
Speaker 8: to zero for zero zero percent terists for zero percent tariffs.

192
00:11:04,600 --> 00:11:06,720
Speaker 6: That is an idea that is basically dead in the water.

193
00:11:06,800 --> 00:11:08,760
Speaker 8: We know that basically the United States is setting a

194
00:11:08,760 --> 00:11:11,840
Speaker 8: minimum rate of ten percent for the Europeans. The question

195
00:11:11,920 --> 00:11:14,000
Speaker 8: is how much more pain than that are they willing

196
00:11:14,080 --> 00:11:16,880
Speaker 8: to accept, how much asymmetry are they willing to accept

197
00:11:17,240 --> 00:11:18,920
Speaker 8: in their discussions with Trump. But at the end of

198
00:11:18,920 --> 00:11:20,880
Speaker 8: the day, I think the frustration from the European side

199
00:11:20,960 --> 00:11:23,160
Speaker 8: is whatever the sort of discussions are leading up to this.

200
00:11:23,520 --> 00:11:24,840
Speaker 8: At the end of the day, it's going to depend

201
00:11:24,960 --> 00:11:27,280
Speaker 8: somewhat on how Trump feels on the day and feels

202
00:11:27,280 --> 00:11:30,200
Speaker 8: closer to those negotiations, how strong he feels his hand is,

203
00:11:30,520 --> 00:11:32,800
Speaker 8: but in part due to the other negotiations that are

204
00:11:32,800 --> 00:11:34,760
Speaker 8: going on. And so I think it's very difficult and

205
00:11:34,760 --> 00:11:35,680
Speaker 8: there's a lot of anxiety.

206
00:11:35,679 --> 00:11:35,760
Speaker 2: You know.

207
00:11:35,840 --> 00:11:37,520
Speaker 8: I spent the weekend at the G twenty at the

208
00:11:37,600 --> 00:11:39,800
Speaker 8: end of last week talking to all these finance ministers,

209
00:11:39,880 --> 00:11:41,880
Speaker 8: and I think there is a dawning realization that kind

210
00:11:41,880 --> 00:11:45,040
Speaker 8: of the most optimistic scenarios, despite the positive face.

211
00:11:44,840 --> 00:11:46,520
Speaker 6: They want to put on, is really evaporating.

212
00:11:47,240 --> 00:11:49,559
Speaker 2: So what would it take for the EU to retaliate

213
00:11:49,679 --> 00:11:52,200
Speaker 2: and how would that work? I mean, all leaders would

214
00:11:52,240 --> 00:11:55,040
Speaker 2: need to sign off on it, surely, given what's at stake?

215
00:11:55,760 --> 00:11:59,559
Speaker 6: What is this plan? Yeah, so that's the key question, right.

216
00:11:59,600 --> 00:12:02,160
Speaker 8: So again, what we were reporting earlier is that the

217
00:12:02,520 --> 00:12:05,080
Speaker 8: European Union kind of was okay with the idea that

218
00:12:05,120 --> 00:12:05,880
Speaker 8: the US would.

219
00:12:05,679 --> 00:12:08,240
Speaker 6: Put in a ten percent tariff. The question is how much.

220
00:12:08,080 --> 00:12:10,880
Speaker 8: More over ten percent is the EU willing to accept

221
00:12:10,920 --> 00:12:12,200
Speaker 8: what you allude to there is that there are going

222
00:12:12,240 --> 00:12:14,360
Speaker 8: to be some different views within the European Union in

223
00:12:14,440 --> 00:12:17,240
Speaker 8: terms of what they're willing to accept, what sectors are affected,

224
00:12:17,280 --> 00:12:19,360
Speaker 8: has a different impact for each of the different countries

225
00:12:19,360 --> 00:12:21,680
Speaker 8: within the European Union. But what I will say, and

226
00:12:21,720 --> 00:12:24,000
Speaker 8: my impression is personally, but also some of the finance

227
00:12:24,040 --> 00:12:26,400
Speaker 8: ministers I spoke to outside of Europe over the last

228
00:12:26,440 --> 00:12:29,000
Speaker 8: couple of days saying that basically there's a huge amount

229
00:12:29,040 --> 00:12:31,400
Speaker 8: of unity on the European side, that they've really sort

230
00:12:31,440 --> 00:12:34,360
Speaker 8: of circled the wagons in their discussions with the United

231
00:12:34,400 --> 00:12:36,120
Speaker 8: States and the rest of the world, and I think

232
00:12:36,120 --> 00:12:38,640
Speaker 8: that they realized that despite the sort of individual interests

233
00:12:38,679 --> 00:12:41,520
Speaker 8: of each of the nation that collectively their fate together

234
00:12:41,640 --> 00:12:42,800
Speaker 8: is really sort of entwined.

235
00:12:43,559 --> 00:12:43,760
Speaker 2: Yeah.

236
00:12:43,840 --> 00:12:44,320
Speaker 1: Of course.

237
00:12:44,559 --> 00:12:49,520
Speaker 2: Meanwhile in Germany, interesting this investment Alliance meeting. What are

238
00:12:49,559 --> 00:12:50,959
Speaker 2: these companies going to pledge?

239
00:12:51,120 --> 00:12:52,360
Speaker 6: Yeah, well that's what we're going to find out a

240
00:12:52,400 --> 00:12:53,240
Speaker 6: little bit later today.

241
00:12:53,280 --> 00:12:55,040
Speaker 8: You know, I mean, this is really the era of

242
00:12:55,200 --> 00:12:58,240
Speaker 8: kind of kind of billboard numbers of hundreds of billions

243
00:12:58,280 --> 00:13:00,200
Speaker 8: of dollars. This is something you know, Trump says that

244
00:13:00,200 --> 00:13:02,640
Speaker 8: there were seventeen trillion dollars that were committed to the

245
00:13:02,720 --> 00:13:05,440
Speaker 8: United States, and of course every country around the planet

246
00:13:05,480 --> 00:13:08,800
Speaker 8: is trying to welcome investment and try to encourage investment,

247
00:13:08,960 --> 00:13:10,720
Speaker 8: and that has been one of the difficulties that Germany

248
00:13:10,760 --> 00:13:12,199
Speaker 8: has had over the last few years. You know, it's

249
00:13:12,200 --> 00:13:15,040
Speaker 8: been stagnant economy for a number of years now. Frederic

250
00:13:15,120 --> 00:13:16,880
Speaker 8: Martz has come in as chancellor and said, you know,

251
00:13:16,920 --> 00:13:19,080
Speaker 8: his plan is to turn things around. He's going to

252
00:13:19,120 --> 00:13:22,040
Speaker 8: throw hundreds of billions of dollars from the state towards it.

253
00:13:22,160 --> 00:13:25,000
Speaker 8: The question is, how do you now attract private investment

254
00:13:25,200 --> 00:13:26,319
Speaker 8: and what do you have to do in terms of

255
00:13:26,360 --> 00:13:29,360
Speaker 8: the actual structural reforms within Germany in order to reshape

256
00:13:29,360 --> 00:13:31,240
Speaker 8: this economy so that that money is not just a

257
00:13:31,240 --> 00:13:33,880
Speaker 8: sugar high, this is a meaningful change to the German economy.

258
00:13:33,960 --> 00:13:35,640
Speaker 8: And that's a conversation we're going to be having with

259
00:13:35,720 --> 00:13:38,719
Speaker 8: the CEOs both of Zieman's and Deutsche BANKO will join

260
00:13:38,760 --> 00:13:41,440
Speaker 8: us in studio and see basically answer those tough questions

261
00:13:41,440 --> 00:13:43,120
Speaker 8: and how do you turn this economy around that has

262
00:13:43,160 --> 00:13:46,560
Speaker 8: really been sort of floundering for the last few years.

263
00:13:46,559 --> 00:13:48,360
Speaker 2: Ollie, thank you so much for being with us that

264
00:13:48,400 --> 00:13:50,760
Speaker 2: it has been Biggs Oliver Crook in Berlin. Look forward

265
00:13:50,800 --> 00:13:55,080
Speaker 2: to hearing more on Germany's Investment Alliance meeting then. But

266
00:13:55,160 --> 00:13:57,520
Speaker 2: now let's turn our attention to also our in depth

267
00:13:57,600 --> 00:14:02,839
Speaker 2: reporting on Elon Musk and Howler, SpaceX and xai A

268
00:14:02,920 --> 00:14:05,720
Speaker 2: struggling to deal with the fallout for Musk's feud with

269
00:14:05,800 --> 00:14:09,920
Speaker 2: President Trump, and some wild bets Bloomberg's Asia Aviation and

270
00:14:09,920 --> 00:14:12,960
Speaker 2: Transport report to Danny, Lee joins me. Now, good morning.

271
00:14:13,400 --> 00:14:16,520
Speaker 2: It almost started out in the second Trump White House

272
00:14:16,600 --> 00:14:19,560
Speaker 2: on top of the world the market value of Tesla saw.

273
00:14:19,680 --> 00:14:22,280
Speaker 2: But then we've had the feud, which has highlighted the

274
00:14:22,280 --> 00:14:26,840
Speaker 2: financial vulnerabilities of his empire. What are the main issues

275
00:14:26,840 --> 00:14:28,320
Speaker 2: for Musk's businesses?

276
00:14:28,440 --> 00:14:30,680
Speaker 6: Now, yeah, Caroline, good morning.

277
00:14:30,680 --> 00:14:34,640
Speaker 9: And what we are seeing is an existential crisis for

278
00:14:35,160 --> 00:14:40,240
Speaker 9: the kind of fate of Tesla, of the wider Musk

279
00:14:40,440 --> 00:14:44,280
Speaker 9: magic that produces a lot of the valuation or underpins

280
00:14:44,320 --> 00:14:47,440
Speaker 9: a lot of the valuation. Right what we are seeing

281
00:14:47,560 --> 00:14:51,640
Speaker 9: is Tesla sales sliding in various parts of the world,

282
00:14:51,680 --> 00:14:54,360
Speaker 9: and the most recent corse, we saw sales in the

283
00:14:54,400 --> 00:14:57,720
Speaker 9: quarter down around fourteen percent. That has fed into a

284
00:14:57,760 --> 00:15:01,200
Speaker 9: more difficult time for earnings. But you look at how

285
00:15:01,400 --> 00:15:06,120
Speaker 9: Musk has intertwined the politics with the business, joining for

286
00:15:06,200 --> 00:15:10,320
Speaker 9: a time at the hip with President Donald Trump backing

287
00:15:10,440 --> 00:15:13,280
Speaker 9: him to the tune of three hundred million US dollars,

288
00:15:13,320 --> 00:15:17,280
Speaker 9: and therefore he has in the Muscus has benefited from

289
00:15:17,320 --> 00:15:20,840
Speaker 9: that with the early backing of Trump, the pronouncements, the

290
00:15:21,000 --> 00:15:25,000
Speaker 9: access Musk had to the White House. You could easily

291
00:15:25,040 --> 00:15:27,760
Speaker 9: count all the benefits that it could bring potentially easier

292
00:15:28,800 --> 00:15:32,400
Speaker 9: easier time on the regulatory front, the fact that all

293
00:15:32,400 --> 00:15:35,800
Speaker 9: the subsidies that Tesla benefited from, but all of this

294
00:15:36,040 --> 00:15:40,120
Speaker 9: fallout through the kind of angst, the frustration and Musk

295
00:15:40,280 --> 00:15:44,320
Speaker 9: seeing Trump taking in various directions. And now, for example,

296
00:15:44,440 --> 00:15:48,600
Speaker 9: the subsidies that Tesla benefits from are now at risk

297
00:15:48,760 --> 00:15:51,720
Speaker 9: when it comes to ev subsidies. So all of these

298
00:15:51,720 --> 00:15:55,560
Speaker 9: things kind of present an existential threat to the fate

299
00:15:55,640 --> 00:15:58,280
Speaker 9: of all the companies that Musk runs when it comes

300
00:15:58,320 --> 00:16:02,440
Speaker 9: to government funding. Because, yeah, investors understand just how much

301
00:16:02,480 --> 00:16:06,480
Speaker 9: the kind of politics is now so intertwined with business

302
00:16:06,480 --> 00:16:08,160
Speaker 9: and the fate of the fortunes.

303
00:16:08,680 --> 00:16:09,480
Speaker 6: Yeah it is.

304
00:16:09,680 --> 00:16:11,880
Speaker 2: Danny, thank you so much for being with us. Danny

305
00:16:11,920 --> 00:16:17,080
Speaker 2: Lee Bloomberg's Asia Aviation and Transport reporter and you can

306
00:16:17,320 --> 00:16:20,440
Speaker 2: see the full report that analyzes the impact on Tesla,

307
00:16:20,560 --> 00:16:24,480
Speaker 2: SpaceX and XAI. Though, of course, Elon Musk Citi's back

308
00:16:24,560 --> 00:16:27,360
Speaker 2: to being in the office twenty four to seven. The

309
00:16:27,440 --> 00:16:30,960
Speaker 2: title of the story, Elon Musk's Empire is Creaking under

310
00:16:31,000 --> 00:16:34,480
Speaker 2: the Strain of his Antics. Read it on Bloomberg dot

311
00:16:34,520 --> 00:16:35,280
Speaker 2: co dot UK.

312
00:16:36,800 --> 00:16:39,560
Speaker 10: This is Bloomberg Daybreak Europe. You're morning brief on the

313
00:16:39,600 --> 00:16:42,680
Speaker 10: stories making news from London to Wall Street and beyond.

314
00:16:42,960 --> 00:16:46,120
Speaker 2: Look for us on your podcast feed every morning on Apple,

315
00:16:46,280 --> 00:16:48,960
Speaker 2: Spotify and anywhere else you get your podcasts.

316
00:16:49,000 --> 00:16:52,000
Speaker 10: You can also listen live each morning on London DAB Radio,

317
00:16:52,080 --> 00:16:54,800
Speaker 10: the Bloomberg Business app, and Bloomberg dot Com.

318
00:16:54,800 --> 00:16:57,600
Speaker 2: Our flagship New York station is also available on your

319
00:16:57,600 --> 00:17:02,320
Speaker 2: Amazon Alexa devices. Just say Alexa played Bloomberg eleven thirty.

320
00:17:02,560 --> 00:17:03,960
Speaker 2: I'm Caroline Hepka.

321
00:17:03,720 --> 00:17:06,159
Speaker 10: And I'm Stephen Carol. Join us again tomorrow morning for

322
00:17:06,280 --> 00:17:08,680
Speaker 10: all the news you need to start your day right

323
00:17:08,680 --> 00:17:14,480
Speaker 10: here on Bloomberg Daybreak Europe.