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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Day BAKT podcast. Good morning, It's Tuesday,

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Speaker 2: the eleventh of November. I'm Caroline Hetkut in London.

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Speaker 1: And I'm Stephen Caroline Brussels. Coming up today, the European

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Speaker 1: Union looks at ways to ban Chinese giants Huawei and

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Speaker 1: Zte from its telecoms networks.

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Speaker 2: Bloomberg learns that Switzerland is close to securing a deal

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Speaker 2: that will slash US tariffs from thirty nine percent to fifteen.

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Speaker 1: Plus sun Sea and surging property prices. Why do you

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Speaker 1: buis unbuilt penthouses are sparking a bidding war among the

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Speaker 1: ultra rich.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 1: Exclusive reporting from Bloomberg has found that the European Union

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Speaker 1: is considering ways to compel member states to ban Chinese

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Speaker 1: telecom giants from their networks. Sources tell us the European

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Speaker 1: Commission is exploring measures that would make it legally binding

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Speaker 1: for nations to phase out technology from Huawei and z

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Speaker 1: Te with moral hairs. Boomberg's crispis while countries such as

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Speaker 1: the UK and Sweden banned Chinese vendors from their networks

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Speaker 1: years ago. Others, including Spain and Greece, continue to allow them,

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Speaker 1: but as trade and political ties with the EU's second

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Speaker 1: largest trading partner grow increasingly strained, Brussels is becoming more

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Speaker 1: concerned about the security risks posed by Chinese telecoms equipment makers.

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Speaker 1: Since twenty twenty, the EU has recommended member countries don't

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Speaker 1: use high risk suppliers. Now, we're told the Commission wants

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Speaker 1: to make that a legally binding requirement. Sources also told

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Speaker 1: us the EU's executive branch is considering measures to dissuade

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Speaker 1: countries outside the block from relying on Chinese telecom vendors.

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Speaker 1: Huawei didn't immediately respond to requests for comment, However, China's

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Speaker 1: Foreign Ministry has previously criticized the EU's characterization of Huawei

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Speaker 1: and Zte as high risk suppliers, calling it lacking in

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Speaker 1: both legal and factual basis. In London, Chris Pitt Bloomberg.

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Speaker 2: Radio Switzerland is closed to securing a fifteen percent tariff

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Speaker 2: on its exports to the US. According to sources who've

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Speaker 2: spoken to Bloomberg, the deal would be a relief for

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Speaker 2: the country after it was hit with a punishing thirty

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Speaker 2: nine percent tariff rate in August. It's understood that a

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Speaker 2: deal may be concluded within the next two weeks, with

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Speaker 2: US President Trump confirming that his administration is quote working

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Speaker 2: on a deal to get their tariffs a little bit lower.

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Speaker 2: The possible breakthrough comes after some of Switzerland's most high

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Speaker 2: profile business executives attended an Oval Office meeting last week

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Speaker 2: that prompted the US President to endorse additional trade negotiations.

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Speaker 1: The longest US government shut down in history could soon

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Speaker 1: come to an end after the Senate passed a stopgap

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Speaker 1: funding bill backed by a group of eight Democrats. Senate

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Speaker 1: Majority Leader John Thoon welcome to the move.

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Speaker 3: As President, I said that we will be voting on

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Speaker 3: the final package in the in your future, and I'm

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Speaker 3: hoping that will be hours in that days. We're on

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Speaker 3: the forty first day of this shutdown. Nutrition benefits are

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Speaker 3: in jeopardy. Air travel is an extremely precarious situation. Our

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Speaker 3: staffs and many many other government workers have been working

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Speaker 3: for nearly six weeks without pay.

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Speaker 1: SANUS Majority Leader John Toon speaking there. The Republican controlled

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Speaker 1: houses expected to vote on the bill tomorrow, which will

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Speaker 1: keep most of the government open until the end of January. Whoever,

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Speaker 1: it could take days for air travel to return to

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Speaker 1: normal and for forty two million low income Americans to

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Speaker 1: receive delayed food assistance benefits.

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Speaker 2: The UK's Chancellor, Chel Reeves has given the strongest indication

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Speaker 2: yet that her upcoming budget could break the government's pre

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Speaker 2: election promise not to raise taxes. Before it came to

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Speaker 2: power last year, the Labor Party made a manifesto commitment

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Speaker 2: not to lift the rates of income tax, National Insurance

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Speaker 2: or VAT. However, speaking to BBC Radio, Reeves suggested the

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Speaker 2: content has changed.

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Speaker 4: The economic circumstances have declined deteriorated since a year ago

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Speaker 4: because of those conflicts are because of those trade barriers

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Speaker 4: and as a result that we are having to look

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Speaker 4: at taxes and spending and it's got to be both

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Speaker 4: of those things. And the speech I made last week

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Speaker 4: was about setting the context for the budget, which is

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Speaker 4: a difficult one.

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Speaker 2: Senior Labor figures, including the party's deputy leader Lucy Powell

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Speaker 2: and Culture Secretary Lisa Nandy, have said they don't think

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Speaker 2: the government should break the tax pledge. It comes also

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Speaker 2: as the British Retail Consortium announced that weakening UK sales

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Speaker 2: growth in October, shoppers held back on purchases ahead of

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Speaker 2: the budget, which also happens to fall two days before

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Speaker 2: Black Friday.

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Speaker 1: The BBC has just days to decide how it will

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Speaker 1: respond to US President Donald Trump's threat to sue the

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Speaker 1: corporation for one billion dollars. The move comes as the

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Speaker 1: BBC conceded that edits made to Trump's speech on the

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Speaker 1: sixth of January twenty twenty one for a documentary Wrongley

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Speaker 1: gave the impression of a direct call for violent action.

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Speaker 1: In a letter dated Sunday, Trump threatened legal action and

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Speaker 1: sought damages if the BBC did not issue an apology,

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Speaker 1: retract the documentary and compensate him appropriately for the harm caused.

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Speaker 1: Here's the BBC's chairman, Samir Shah.

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Speaker 5: We have received communication from President Trump and his people

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Speaker 5: and react movel considering how to apply to him.

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Speaker 6: As he said that he's going to be suing the BBC.

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Speaker 5: I do not know that yet, but he's a reltigious fellow,

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Speaker 5: so we should be prepared for all outcomes.

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Speaker 1: Samir Shah, speaking there following the resignations of BBC Director

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Speaker 1: General Tim Davey and News chief Deborah Turners have both

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Speaker 1: stepped down over the matter on Sunday.

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Speaker 2: Now, Warren Buffett says he's going quiet and picking up

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Speaker 2: the pace of his charitable donations. It marks the end

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Speaker 2: of an era for the billionaire investor, who will also

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Speaker 2: stop writing Berkshire Hathaway annual letters and speaking at its meetings.

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Speaker 2: The ninety five year old is stepping down from his

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Speaker 2: CEO role at the firm this year, passing the reins

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Speaker 2: to longtime deputy Greg Abel. In a memo detailing the change,

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Speaker 2: Warren Buffett disclosed plans to donate more than one point

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Speaker 2: three billion dollars to four family foundations. And those are

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Speaker 2: our top stories for you this morning. In terms of

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Speaker 2: the markets, well, we were a risk on yesterday because

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Speaker 2: the US government shot down looks perhaps to be coming

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Speaker 2: to a close, with a vote expected on Wednesday. The

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Speaker 2: Nasdaq again two point three percent on Monday, it's best

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Speaker 2: day since May. The US stocks six hundred closed one

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Speaker 2: point four percent high, also rising the most in six months,

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Speaker 2: and europinion futures are edging high. But actually Asian stocks

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Speaker 2: are down. The Cosby, for example, wiped out again that

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Speaker 2: we saw earlier of two point eight percent. Gold, though,

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Speaker 2: is still up three tenths of one percent, although Bitcoin

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Speaker 2: is given up gains, it's down now half of one

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Speaker 2: and there's still a big debate about how much asset prices.

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Speaker 2: We're really looking at the shutdown in any case, but

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Speaker 2: that's where we are in the markets.

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Speaker 1: In a moment, we'll bring you more on the euse

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Speaker 1: pushed against Chinese telecom equipment firms, plus why unbuilt penthouses

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Speaker 1: in Dubai are sparking a bidding spree among the ultra rich.

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Speaker 7: But another story that I wanted to mention this morning.

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Speaker 1: Can influencers help to make Microsoft co Pilot cool? This

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Speaker 1: is something that our colleague Emily Forgat has been writing about.

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Speaker 1: Microsoft has hired influencers to try and bring mainly younger

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Speaker 1: users to Copilot because in terms of the numbers using

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Speaker 1: AI assistants, they're lagging way behind the likes of Chat,

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Speaker 1: Ebt or Gemini, even though of course Microsoft has this

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Speaker 1: huge advantage in the corporate world because of the software

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Speaker 1: that's on most business PCs as well. It's an interesting strategy.

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Speaker 1: I'm not sure covering all matters of things.

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Speaker 2: Yeah, Look, this is where my experience as a parent

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Speaker 2: has alarm bells ringing? Am I really cool?

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Speaker 7: Ula to the kids?

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Speaker 2: If I cling to a new friend or new clothes

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Speaker 2: or new music.

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Speaker 1: I'd say yes and no, depends on who they are,

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Speaker 1: really suppose, I mean the examples they've used. So, there's

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Speaker 1: one influencer called Alex earl Is from New Jersey who

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Speaker 1: she has She's one of these pilots. She's been using

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Speaker 1: co Pilot to try and brainstorm ideas. Apparently she asked

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Speaker 1: it how she could appear younger because some of her

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Speaker 1: followers have said she looks forty she's in her mid twenties.

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Speaker 1: They told her to focus on a good skincare regime. Okay, fine,

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Speaker 1: I'm just not sure that necessarily any of these masters

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Speaker 1: are really going to win anyone over to it, But

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Speaker 1: some of the responses on social media have been pretty

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Speaker 1: positive to it. Will this be enough to win people over?

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Speaker 1: Does AI need any more marketing than it already gets?

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Speaker 3: Yeah?

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Speaker 2: But look, I think the chat it just goes to

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Speaker 2: show the Chat GPT numbers that hundreds of millions of

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Speaker 2: users every single week are using it so intensively it's

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Speaker 2: really hard the massive challenge for anyone else.

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Speaker 7: To keep up.

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Speaker 2: But yes, lots of question books about Yeah, how to

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Speaker 2: make your brand the cool one that people want.

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Speaker 7: To use indeed want to follow.

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Speaker 1: Well, let's bring you more in our top story now,

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Speaker 1: the opinionion is exploring ways to force member states to

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Speaker 1: phase out technology from Chinese firm Huawei and z T.

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Speaker 1: This is trade tensions have risen between Brussels and Beijing.

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Speaker 1: Our reporting mccalcabala joins me now for more on this story, mccauth,

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Speaker 1: what exactly is the European Commission planning?

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Speaker 8: It seems to be planning more steps towards tightening control

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Speaker 8: over who can be a part of your critical infrastructure.

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Speaker 7: Sources are telling us the EU's Executive.

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Speaker 8: Branch is exploring new rules that would turn its current

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Speaker 8: recommendations on what our scene has high risk telecom vendors

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Speaker 8: into a legal requirement. The move could force member states

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Speaker 8: to phase out Chinese giants Wave and z T from

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Speaker 8: their telecommunication networks. So far, countries could choose whether to

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Speaker 8: follow a Brussels T twenty twenty security toolbox, But now

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Speaker 8: we understand that top officials are weighing proposals that would

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Speaker 8: compel the countries to align with the recommendations. Say if

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Speaker 8: they become legally binding. Member states that wouldn't comply could

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Speaker 8: phase infringement or financial penalties.

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Speaker 2: Why are they doing this? And I suppose the question

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Speaker 2: why are they doing this now?

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Speaker 7: The primary why?

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Speaker 8: The primary concern here seems to be security, so as

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Speaker 8: trade and political ties with China are now becoming increasingly strained,

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Speaker 8: the Block is more concerned about risks posed by Chinese telecoms,

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Speaker 8: especially that companies with close ties to Beijing could gain

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Speaker 8: access to sensitive data and sensitive network system. It is

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Speaker 8: an issue that has been simmering since the first Donald

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Speaker 8: Trump in the administration. Trump has been pushing for this

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Speaker 8: WABE ban back in twenty nineteen, and outside the EU,

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Speaker 8: the UK has has banned Chinese vendors. Within the EU,

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Speaker 8: Sweden has done so, but others like Spain a Greece

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Speaker 8: still use them. And there are some in Brussels that

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Speaker 8: argue that this uneven approach now against the backdrop of

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Speaker 8: of these spats with China, the entire EU is exposed,

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Speaker 8: so it does look like an attempt to have a

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Speaker 8: single binding standard across the across the block.

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Speaker 7: What has China and these companies said about this?

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Speaker 8: We haven't yet received a comment We've sent a request

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Speaker 8: for comment to Wabe, haven't received a response, but we

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Speaker 8: know that China's Foreign Ministry has previously criticized the EU's

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Speaker 8: characterization of Wabe and z T as high risk suppliers

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Speaker 8: as something that lacks both illegal and.

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Speaker 7: Factual basis.

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Speaker 2: We'll just last I suppose you mentioned that this comes,

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Speaker 2: you know, at a time when there are tensions between

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Speaker 2: the EU and China, and those have been rising, and

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Speaker 2: there've been disputes about chip supplies and lots of other issues.

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Speaker 2: But how significant is this then in actually the broader relationship.

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Speaker 8: It could be a significant step by the EU towards

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Speaker 8: de risking from China. This is something that commissioned President

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Speaker 8: Ursula order Line hasn't been talking about back in twenty

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Speaker 8: twenty three, essentially bypassing regions that pose a security risk

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Speaker 8: without they say, coupling from them, without severing the relationship outright.

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Speaker 8: And it's interesting too to add that this reporting comes

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Speaker 8: almost on the back of another short spat with China

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Speaker 8: that surrounding Experior So the Dutch government to control of

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Speaker 8: the Chinese Chinese owned chip maker based in the Netherlands,

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Speaker 8: and that led to a temporary halt and exports from

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Speaker 8: China of chips. This has been resolved a few days back.

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Speaker 8: Maybe looking at another another area where the EU is

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Speaker 8: really reliant on China. China has suspended its recent rare

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Speaker 8: earth export curbs which were imposed a few months back

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Speaker 8: as part of the trade truce with the United States.

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Speaker 8: They suspended that curb that appears to have benefit the

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Speaker 8: benefited the EU as well. And all of this comes

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Speaker 8: against the backdrop of on and off trade disputes between

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Speaker 8: the US and China. The US would sometimes shift to

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Speaker 8: more confrontational balancing stands, whereas the Brussels approach seems to

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Speaker 8: be more about targeting specific vulnerabilities and steadily pushing towards

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Speaker 8: that you're risking and reducing their critical dependencies.

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Speaker 1: Okay, what a very interesting one to watch from here

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Speaker 1: as well in Macalcubaa. Thank you very much for bringing

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Speaker 1: us up to date on that story.

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Speaker 7: Stay with us.

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Speaker 1: More from Bloomberg Daybreak Europe coming up after this now.

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Speaker 2: Dubai's property boom is reaching new heights with a surge

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Speaker 2: in sales of luxury homes and apartments bought off plan,

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Speaker 2: but some market watchers are starting to see parallels to

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Speaker 2: the Emirates two thousand and nine crash. Our Middle East

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Speaker 2: real estate reporter Zaynab Fata joins US Now this morning

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Speaker 2: for more on this. Zaynab, good morning, and you're reporting

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Speaker 2: use the example of one new development where potential buyers

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Speaker 2: have bid the equivalent of more than two hundred thousand

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Speaker 2: dollars just to be considered for these multimillion dollar apartments.

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Speaker 2: What does this tell us about the state of the

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Speaker 2: market where you are.

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Speaker 6: It's two hundred and seventy thousand dollars to be exact,

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Speaker 6: the equivalent of one million dirhums that you had to

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Speaker 6: submit just to be considered, and that's money that had

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Speaker 6: to be cashed and goes into the company's accounts after

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Speaker 6: they do the allocation. If you've got an apartment, great,

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Speaker 6: you do the rest of the payments. If you don't,

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Speaker 6: then they give your money back. It shows you how

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Speaker 6: hot the market, especially on the very top end, the

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Speaker 6: ultra luxury side of the market. And that's really a

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Speaker 6: function of the increase in wealthy individuals who are moving

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Speaker 6: to Dubai as a phenomenon we started seeing after the

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Speaker 6: pandemic hit and Dubai reopened much quicker than other cities.

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Speaker 6: We started to see the wealthy and the rich and

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Speaker 6: famous celebrities and many people moving into the city or

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Speaker 6: coming to the city to see it, and then some

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Speaker 6: decided to make it home. And Dubai responded by liberalizing

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Speaker 6: their visa policies, giving ten year visas to those who

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Speaker 6: can afford it, and in many ways that started that

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Speaker 6: influx that we have right now that helped the market

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Speaker 6: and the seven year property decline that really drove prices

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Speaker 6: and rents down for since twenty fourteen.

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Speaker 1: So how much worry is there then that this could

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Speaker 1: lead to another bubble scenario. They're still fresh memories of

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Speaker 1: the two thousand and nine crash and the emirates as well.

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Speaker 6: Yes, absolutely no one gets that in this city because

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Speaker 6: it's seered into the memory of so many people. But

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Speaker 6: there was a UBS report recently that said Dubai is

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Speaker 6: starting to kind of enter into bubble territory. Still, the city, however,

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Speaker 6: is behind Miami, Tokyo, Zurich, and Los Angeles on that index.

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Speaker 6: So what's happening in Dubai. It's big, but the city

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Speaker 6: is still much smaller than some of those cities, and

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Speaker 6: in many ways, the increases in values and rents have

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Speaker 6: shocked a lot of people because of the pace of it.

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Speaker 6: So Dubai property prices on average rose by seventy percent

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Speaker 6: since the end of twenty nineteen, and rental growth have

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Speaker 6: outpaced that. On the upper end of the market, we're

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Speaker 6: talking about one hundred and forty five percent increased because

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Speaker 6: much of that supply catering to the ULTRAALTHI did not

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Speaker 6: exist and developers are really like right now building it up.

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Speaker 2: I mean when you talk about luxury, just was struck

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Speaker 2: by the numbers again in your piece. That is for

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Speaker 2: properties that are of a now ten million dollars or more.

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Speaker 2: So it is very high end, isn't there? But what

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Speaker 2: has changed in terms of trying to prevent another property

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Speaker 2: bubble or crash like the one that you saw in

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Speaker 2: two thousand and nine because authorities there have tried to

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Speaker 2: put some additional kind of constraints in different measures tell

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Speaker 2: us about those briefly.

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Speaker 7: A lot have.

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Speaker 6: Changed in fact since that crash happened and the banks

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Speaker 6: were settled with so much that the government came in

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Speaker 6: with so many different rules. So now we have ascrow accounts.

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Speaker 6: Now developers have to actually own outright the land they

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Speaker 6: want to build the project on. It can't be mortgaged.

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Speaker 6: And those who actually are allowed to buy are those

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Speaker 6: who are buying a property that exists. You can't buy

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Speaker 6: off plan, the advanced model, you can't buy with a mortgage,

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Speaker 6: so a lot of those are people putting their own

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Speaker 6: cash and savings into it. There are certain things that

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Speaker 6: the developers are instituting, so when you buy a property

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Speaker 6: ahead of construction and you take the contract, you can't

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Speaker 6: just make one payment and god is set. A lot

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Speaker 6: of developers lock you in until at least you paid

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Speaker 6: sixty percent of it or sometimes fifty percent depends.

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Speaker 7: So there are a lot of guardrails.

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Speaker 6: And the biggest of all that when you want to

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Speaker 6: get a mortgage in this town, you need to put

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Speaker 6: twenty percent down payment, so there are no mortgages below

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Speaker 6: that for first home buyers, and the second home buyers

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Speaker 6: is thirty percent. So it's a market that is kind

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Speaker 6: of concerned and shaped by the trauma endured in two

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Speaker 6: thousand and nine.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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Speaker 2: I'm Caroline Hepca and.

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Speaker 7: I'm Stephen Carroll.

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Speaker 1: Join us again tomorrow morning for all the news you

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Speaker 1: need to start your day right here on Bloomberg day

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Speaker 1: Break Europe

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Speaker 2: M