1
00:00:02,560 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:10,160 --> 00:00:12,559
Speaker 2: This is the BlueBag Day Baker at podcast. Good morning,

3
00:00:12,600 --> 00:00:15,520
Speaker 2: It's Wednesday, the twenty fourth of September. I'm Caroline Hepgar

4
00:00:15,640 --> 00:00:19,480
Speaker 2: in London. Coming up today. President Trump says that NATO

5
00:00:19,680 --> 00:00:24,440
Speaker 2: allies should shoot down Russian aircraft that enter their territory

6
00:00:24,560 --> 00:00:28,120
Speaker 2: as he backs Ukraine to win the war. Jimmy Kimmel

7
00:00:28,240 --> 00:00:30,680
Speaker 2: chokes up as he says it was never his intention

8
00:00:31,080 --> 00:00:34,320
Speaker 2: to make light of the murder of Charlie Kirk before

9
00:00:34,320 --> 00:00:37,280
Speaker 2: calling efforts to take his program off the air on

10
00:00:37,440 --> 00:00:42,320
Speaker 2: American plas the trillion dollar race, European money managers moved

11
00:00:42,360 --> 00:00:45,640
Speaker 2: to consolidate as they try to head off the growing

12
00:00:45,760 --> 00:00:48,879
Speaker 2: threat from Wall Street rivals. Let's start with the roundup

13
00:00:48,880 --> 00:00:53,080
Speaker 2: of our top stories. President Donald Trump is sounding a

14
00:00:53,120 --> 00:00:56,960
Speaker 2: new note on Ukraine's chances of winning its war against

15
00:00:57,080 --> 00:01:01,560
Speaker 2: Russia and saying that NATO itself sho take a tougher line.

16
00:01:01,680 --> 00:01:05,240
Speaker 2: He says members of the Alliance should take down Russian

17
00:01:05,440 --> 00:01:09,800
Speaker 2: planes that breach their airspace. That was after a series

18
00:01:09,880 --> 00:01:14,120
Speaker 2: of jet and drone incursions this month on NATO's eastern

19
00:01:14,240 --> 00:01:19,160
Speaker 2: flank which alarmed allies. Here is the exchange with reporters

20
00:01:19,200 --> 00:01:25,280
Speaker 2: when President Trump was directly pressed on his stance, Mister Prednay, do.

21
00:01:25,200 --> 00:01:29,280
Speaker 3: You think that NATO countries should shoot down Russian aircraft

22
00:01:29,319 --> 00:01:30,759
Speaker 3: if they enter their airspace?

23
00:01:33,080 --> 00:01:37,080
Speaker 2: Donald Trump was speaking alongside Ukraine's Vladim Zelinsky on the

24
00:01:37,120 --> 00:01:40,560
Speaker 2: sidelines of the UN General Assembly in New York. In

25
00:01:40,640 --> 00:01:44,240
Speaker 2: a subsequent social media post, Trump said he believed that

26
00:01:44,760 --> 00:01:49,080
Speaker 2: with EU backing, Ukraine was positioned to reclaim all the

27
00:01:49,200 --> 00:01:53,280
Speaker 2: territory taken by Russia since its invasion in twenty twenty two.

28
00:01:53,880 --> 00:01:58,600
Speaker 2: Not only to fight back, President Trump wants NATO to

29
00:01:58,760 --> 00:02:02,440
Speaker 2: step up and also put more pressure on Russia. Though

30
00:02:02,920 --> 00:02:07,840
Speaker 2: Finnish President Alexander Stubb has been speaking to Bloomberg, all.

31
00:02:07,640 --> 00:02:10,520
Speaker 4: The conversations that I've had with my American friends and

32
00:02:10,560 --> 00:02:13,600
Speaker 4: also with President Trump lead me to believe that there's

33
00:02:13,639 --> 00:02:17,680
Speaker 4: a very strong commitment to nature and the alliance. Remember

34
00:02:17,720 --> 00:02:20,040
Speaker 4: that a year ago, if someone would have told me

35
00:02:20,080 --> 00:02:22,519
Speaker 4: in the summer, at the seventy fifth Anniversary of Nature

36
00:02:22,520 --> 00:02:24,919
Speaker 4: that we will hike up our defense expenditure from JUO

37
00:02:24,960 --> 00:02:27,600
Speaker 4: to five percent next summer, I would have said, you'd

38
00:02:27,600 --> 00:02:29,440
Speaker 4: probably going to need to go and see a doctor.

39
00:02:30,520 --> 00:02:34,560
Speaker 2: Finished President Alexander stood there speaking to Bloomberg's Tyler Kendall.

40
00:02:34,800 --> 00:02:38,680
Speaker 2: The US President meanwhile delivered his first UN speech of

41
00:02:38,720 --> 00:02:43,600
Speaker 2: his second term, in which he severely criticized the UN

42
00:02:43,800 --> 00:02:48,200
Speaker 2: organization and repeated his call for stronger borders.

43
00:02:48,919 --> 00:02:49,119
Speaker 1: Now.

44
00:02:49,160 --> 00:02:53,400
Speaker 2: The US's late night host Jimmy Kimmel became notably emotional

45
00:02:53,480 --> 00:02:57,519
Speaker 2: as his show returned, and he railed against the threat

46
00:02:57,520 --> 00:03:01,760
Speaker 2: of censorship. Disney suspended Kimmel's show last week following controversial

47
00:03:01,800 --> 00:03:05,799
Speaker 2: remarks that the comedian made about the assassination of Republican

48
00:03:05,840 --> 00:03:09,560
Speaker 2: activists Charlie Kirk. At the start of his ABC show,

49
00:03:09,639 --> 00:03:14,200
Speaker 2: the comedian thanked both political supporters and opponents who had

50
00:03:14,320 --> 00:03:17,959
Speaker 2: backed his freedom to share his views on air, before

51
00:03:18,000 --> 00:03:21,079
Speaker 2: then offering this conciliatory message.

52
00:03:21,919 --> 00:03:24,720
Speaker 5: You understand that it was never my intention to make

53
00:03:24,800 --> 00:03:27,160
Speaker 5: light of the murder of a young man.

54
00:03:28,360 --> 00:03:28,959
Speaker 3: I don't.

55
00:03:32,720 --> 00:03:35,920
Speaker 5: I don't think there's anything funny about it. I posted

56
00:03:35,960 --> 00:03:38,600
Speaker 5: a message on Instagram of the daves killed, sending love

57
00:03:38,640 --> 00:03:41,160
Speaker 5: to his family and asking him for compassion, and I

58
00:03:41,280 --> 00:03:43,920
Speaker 5: meant it and I still do. Nor was in my

59
00:03:44,000 --> 00:03:47,560
Speaker 5: intention to blame any specific group for the actions of

60
00:03:47,600 --> 00:03:50,520
Speaker 5: what it was obviously a deeply disturbed individual.

61
00:03:51,200 --> 00:03:53,680
Speaker 2: Kimmel went on to call the push to take his

62
00:03:53,840 --> 00:03:58,240
Speaker 2: show off air on American Disney reinstated kim OLL's program

63
00:03:58,280 --> 00:04:00,760
Speaker 2: after reaching an agreement with the late night host about

64
00:04:00,800 --> 00:04:04,400
Speaker 2: what he would say on air, following a public backlash

65
00:04:04,400 --> 00:04:07,240
Speaker 2: out the decision to suspend him. Now, in a social

66
00:04:07,240 --> 00:04:12,280
Speaker 2: media post, President Trump floated the prospect of unspecified future

67
00:04:12,360 --> 00:04:17,000
Speaker 2: legal challenges against the company's decision to bring back the show,

68
00:04:17,200 --> 00:04:22,520
Speaker 2: calling him an arm of the Democratic Party. Now. Another news,

69
00:04:22,640 --> 00:04:27,200
Speaker 2: violent wind and torrential rain super typhoon Ragasa has been

70
00:04:27,279 --> 00:04:30,400
Speaker 2: pounding Hong Kong and it is expected to hit China's

71
00:04:30,640 --> 00:04:34,280
Speaker 2: Guangdong province later today. Ragasa has killed at least fourteen

72
00:04:34,279 --> 00:04:37,520
Speaker 2: people in Taiwan and six in the Philippines, and is

73
00:04:37,560 --> 00:04:41,120
Speaker 2: the worst cyclone worldwide this year. The storm has led

74
00:04:41,120 --> 00:04:45,680
Speaker 2: to thousands of flights being canceled, school classes, train services,

75
00:04:45,720 --> 00:04:51,039
Speaker 2: and business activities being suspended across major cities in southern China.

76
00:04:51,080 --> 00:04:53,520
Speaker 2: Here in the UK, the government is looking at making

77
00:04:53,520 --> 00:04:56,800
Speaker 2: it easier for highly skilled workers to come to Britain

78
00:04:56,839 --> 00:05:00,960
Speaker 2: to take advantage of America's visa changes. The Chance of

79
00:05:01,080 --> 00:05:04,919
Speaker 2: Rachel Reeves told staff at revolutes new global headquarters that

80
00:05:05,000 --> 00:05:08,520
Speaker 2: the UK government is moving quickly to try to grab talent.

81
00:05:08,839 --> 00:05:11,039
Speaker 2: Here is Bloomberg's James Walcock with more.

82
00:05:11,400 --> 00:05:15,360
Speaker 6: The UK government wants your tech professionals, bankers and lawyers,

83
00:05:15,560 --> 00:05:18,320
Speaker 6: but if you're coming illegally, it wants to discourage you

84
00:05:18,360 --> 00:05:22,840
Speaker 6: from coming. The mixed messaging is created by two competing priorities.

85
00:05:23,440 --> 00:05:26,839
Speaker 6: The UK government wants economic growth, but it's also terrified

86
00:05:27,000 --> 00:05:29,800
Speaker 6: of being seen not to be in control of migration

87
00:05:30,200 --> 00:05:32,680
Speaker 6: in London James Wacock, Bloomberg Radio.

88
00:05:32,720 --> 00:05:35,599
Speaker 2: Faircha Jo and Powell says that there is no risk

89
00:05:35,720 --> 00:05:38,520
Speaker 2: free path for the US economy. The Central Bank chair

90
00:05:38,640 --> 00:05:42,240
Speaker 2: pointed to high inflation and a fragile jobs market as

91
00:05:42,320 --> 00:05:46,440
Speaker 2: pain on both sides of the monetary policy problem. Powell

92
00:05:46,480 --> 00:05:49,880
Speaker 2: says that economists are also still watching for a tariff

93
00:05:49,960 --> 00:05:52,160
Speaker 2: impact your term, risks.

94
00:05:52,200 --> 00:05:55,320
Speaker 7: To inflation are tilted to the upside and risks to

95
00:05:55,360 --> 00:06:00,480
Speaker 7: employment are tilted to the downside, a challenging situation. Two

96
00:06:00,520 --> 00:06:03,760
Speaker 7: sided risks mean that there is no risk free path.

97
00:06:04,279 --> 00:06:07,720
Speaker 2: Powell's comments are in stark contrast to President Trump's new

98
00:06:07,720 --> 00:06:11,280
Speaker 2: appointee to the FED Board, Stephen Myron. Myron says that

99
00:06:11,320 --> 00:06:14,240
Speaker 2: the threat to the labor market is the main priority,

100
00:06:14,400 --> 00:06:17,600
Speaker 2: and is voting for steep cuts to the interest rate.

101
00:06:18,080 --> 00:06:21,400
Speaker 2: The open divide the US Central Bank is driving big

102
00:06:21,400 --> 00:06:25,880
Speaker 2: swings in trading in options markets. Traders now expect only

103
00:06:25,920 --> 00:06:29,520
Speaker 2: one more twenty five basis point cut this year, and

104
00:06:29,600 --> 00:06:33,039
Speaker 2: the so called neutral raids they see as higher than

105
00:06:33,200 --> 00:06:37,880
Speaker 2: current market expectations at just below three percent. Open AI

106
00:06:38,040 --> 00:06:40,880
Speaker 2: is planning to invest roughly four hundred billion dollars to

107
00:06:40,960 --> 00:06:45,000
Speaker 2: develop five new US data centers. The project, in partnership

108
00:06:45,080 --> 00:06:48,560
Speaker 2: with Oracle and SoftBank, is the biggest push to fulfill

109
00:06:48,640 --> 00:06:52,239
Speaker 2: a pledge to spend a half trillion dollars on AI

110
00:06:52,520 --> 00:06:57,280
Speaker 2: infrastructure in America. J Jacobs, head of Equity ETFs at

111
00:06:57,279 --> 00:07:00,159
Speaker 2: black Rock, expects even more money to flow in to

112
00:07:00,200 --> 00:07:00,760
Speaker 2: the sector.

113
00:07:01,520 --> 00:07:04,120
Speaker 8: Investor enthusiasm is only growing. If you look at one

114
00:07:04,160 --> 00:07:08,040
Speaker 8: of our ETFs, BAI. It's an actively managed AIETF. It's

115
00:07:08,080 --> 00:07:10,440
Speaker 8: brought in over five billion dollars this year and is

116
00:07:10,480 --> 00:07:13,120
Speaker 8: now the largest AIETF in the United States, and a

117
00:07:13,160 --> 00:07:16,280
Speaker 8: lot of the exposure that is providing to investors is

118
00:07:16,320 --> 00:07:19,320
Speaker 8: around that digital infrastructure layer. The hardware producers in the

119
00:07:19,320 --> 00:07:22,760
Speaker 8: semiconductor space, the digital infrastructure owners, some of the data

120
00:07:22,800 --> 00:07:26,080
Speaker 8: owners that are becoming really valuable in this explosion of

121
00:07:26,120 --> 00:07:29,080
Speaker 8: AI models, and so there's a ton of investor enthusiasm,

122
00:07:29,440 --> 00:07:31,800
Speaker 8: and I think there's a lot of expectations that revenues

123
00:07:31,840 --> 00:07:34,600
Speaker 8: will match the expenditures, if not exceed them, in the

124
00:07:34,600 --> 00:07:35,360
Speaker 8: next several years.

125
00:07:35,640 --> 00:07:39,560
Speaker 2: Now Black Clox J Jacobs there speaking to Bloomberg. According

126
00:07:39,640 --> 00:07:43,160
Speaker 2: to the firms, the new locations will be spread across Texas,

127
00:07:43,200 --> 00:07:46,800
Speaker 2: New Mexico, and Ohio and eventually have a capacity of

128
00:07:46,840 --> 00:07:50,360
Speaker 2: seven gigawatts, which is as much as some cities. Open

129
00:07:50,400 --> 00:07:53,000
Speaker 2: AI says that the sites will also create tens of

130
00:07:53,040 --> 00:07:56,480
Speaker 2: thousands of additional jobs across the US. So those are

131
00:07:56,480 --> 00:07:58,880
Speaker 2: our top stories for you this morning. Looking at the

132
00:07:59,000 --> 00:08:02,880
Speaker 2: market stop future for the European market, open are quite weak,

133
00:08:02,920 --> 00:08:04,960
Speaker 2: down four tenths of one percent, but we're keeping an

134
00:08:04,960 --> 00:08:07,920
Speaker 2: eye on defense stocks, which have seen valleys in Asia

135
00:08:08,080 --> 00:08:12,480
Speaker 2: after President Trump's un address yesterday. US STOP futures are

136
00:08:12,480 --> 00:08:15,280
Speaker 2: in the green. Looking at the MSCI Asia Pacific Index

137
00:08:15,320 --> 00:08:17,560
Speaker 2: that is slightly softer. The dollar is stronger a tenth

138
00:08:17,560 --> 00:08:20,720
Speaker 2: of one percent. Oil prices are also higher this morning,

139
00:08:20,840 --> 00:08:25,080
Speaker 2: again on the rhetoric around Russia from President Trump, treasuries

140
00:08:25,080 --> 00:08:27,840
Speaker 2: holding their gains after your own power warned about those

141
00:08:27,960 --> 00:08:31,679
Speaker 2: risks in the labor market and inflation persisting in the US.

142
00:08:31,760 --> 00:08:34,400
Speaker 2: So those are the markets. In a moment, we are

143
00:08:34,480 --> 00:08:37,600
Speaker 2: going to bring you a bit more then on the

144
00:08:37,720 --> 00:08:40,880
Speaker 2: change in tone from President Trump and the United States

145
00:08:40,880 --> 00:08:45,000
Speaker 2: on Russia, and also how Europe's fragmented asset managers are

146
00:08:45,040 --> 00:08:49,320
Speaker 2: starting to consolidate in the face of big US players.

147
00:08:49,559 --> 00:08:52,000
Speaker 2: So we'll get onto that in a moment. But something

148
00:08:52,040 --> 00:08:54,080
Speaker 2: else has caught my eye today. How early do you

149
00:08:54,120 --> 00:08:56,800
Speaker 2: get up? Do you write lists, you take a walk?

150
00:08:57,040 --> 00:09:00,400
Speaker 2: I've been thinking about these habits after reading Bloomberg's CEO

151
00:09:00,559 --> 00:09:03,880
Speaker 2: diet Kate Krader, who actually sits only a few desks

152
00:09:03,920 --> 00:09:06,720
Speaker 2: away from me. She's been talking to a dozen also

153
00:09:06,840 --> 00:09:09,400
Speaker 2: leaders and founders about how they use their time in

154
00:09:09,480 --> 00:09:12,800
Speaker 2: the office and outside, and delighted to hear lots of

155
00:09:12,840 --> 00:09:15,439
Speaker 2: them get up really early, but many of them also

156
00:09:15,520 --> 00:09:18,199
Speaker 2: go to bed and get up at exactly the same time.

157
00:09:18,240 --> 00:09:22,079
Speaker 2: And I just thought it was really interesting conversation about productivity.

158
00:09:22,679 --> 00:09:25,600
Speaker 2: Glad to hear that actually a lot of these CEOs

159
00:09:25,640 --> 00:09:28,600
Speaker 2: do balance, you know, they talk about balance even though

160
00:09:28,600 --> 00:09:32,200
Speaker 2: they're high achievers. They balance their needs across the day.

161
00:09:33,080 --> 00:09:37,160
Speaker 2: Yakob Arab Anderson, who's the CEO of Carlsberg, calls it

162
00:09:37,480 --> 00:09:42,520
Speaker 2: FSN fitness, sleep, nutrition, and lots of others. I mean

163
00:09:42,520 --> 00:09:47,040
Speaker 2: one new CEO, Rose Van Geven at the investment company

164
00:09:47,160 --> 00:09:51,280
Speaker 2: Findlay Park Partners, says that she's completely ditched social media

165
00:09:51,320 --> 00:09:54,120
Speaker 2: platforms because it takes up so much of her time.

166
00:09:54,480 --> 00:09:56,880
Speaker 2: But look, I thought it was a very interesting list

167
00:09:57,040 --> 00:09:59,280
Speaker 2: on Yeah, I guess how to be one of those

168
00:09:59,640 --> 00:10:02,640
Speaker 2: top how to get maybe to be CEO with the

169
00:10:02,679 --> 00:10:06,800
Speaker 2: habits daily habits. It's in Bloomberg's CEO Diet, and I'm

170
00:10:06,840 --> 00:10:08,240
Speaker 2: going to put a link to it in our show

171
00:10:08,280 --> 00:10:10,320
Speaker 2: notes for you to have a read and maybe get

172
00:10:10,360 --> 00:10:15,160
Speaker 2: inspired today. Now, President Donald Trump says that NATO countries

173
00:10:15,440 --> 00:10:18,880
Speaker 2: should shoot down Russian aircraft that violate their airspace in

174
00:10:19,000 --> 00:10:21,160
Speaker 2: and addressed to the UN in which the US President

175
00:10:21,280 --> 00:10:24,960
Speaker 2: was more optimistic about Ukraine's ability to regain all of

176
00:10:25,000 --> 00:10:28,760
Speaker 2: its territory. Joining me now to discuss is Bloomberg's Brussels

177
00:10:28,760 --> 00:10:32,760
Speaker 2: Bureau chief Suzanne Lynch. Good morning, Suzanne. How significant a

178
00:10:32,840 --> 00:10:36,280
Speaker 2: shift is this by the US on support for Ukraine

179
00:10:36,400 --> 00:10:37,560
Speaker 2: against Russia's putin.

180
00:10:39,120 --> 00:10:41,640
Speaker 3: I mean, I think there was a lot of relief

181
00:10:41,800 --> 00:10:45,480
Speaker 3: in New York among European allies about Donald Trump's comments

182
00:10:45,559 --> 00:10:47,960
Speaker 3: that really came out during the day. He struck a

183
00:10:48,080 --> 00:10:52,599
Speaker 3: very combative tone during his own address to the UN Assembly.

184
00:10:53,240 --> 00:10:57,880
Speaker 3: M It was an extremely negative speech where he sailed

185
00:10:58,000 --> 00:11:02,040
Speaker 3: allies over issues like migration and over energy. He said,

186
00:11:02,120 --> 00:11:04,400
Speaker 3: you know your countries are going to hell. And this

187
00:11:04,559 --> 00:11:06,920
Speaker 3: was the tone of his speech to the UN. But

188
00:11:06,960 --> 00:11:10,800
Speaker 3: then later when he started having those bilateral meetings with leaders,

189
00:11:10,840 --> 00:11:14,640
Speaker 3: when we heard from the President at those press points,

190
00:11:14,840 --> 00:11:17,760
Speaker 3: and we definitely saw a different tone in terms of

191
00:11:17,760 --> 00:11:22,559
Speaker 3: the specifics of the US policy visa v Russia and Ukraine,

192
00:11:22,640 --> 00:11:26,160
Speaker 3: and most importantly there as he said he did say

193
00:11:26,200 --> 00:11:28,840
Speaker 3: that he believed that NATO nations should shoot down Russian

194
00:11:28,840 --> 00:11:33,360
Speaker 3: aircrafts that violated their airspace. Earlier we'd heard and Marco

195
00:11:33,440 --> 00:11:36,600
Speaker 3: Rubio kind of moving away from that one slightly. This

196
00:11:36,720 --> 00:11:40,800
Speaker 3: followed comments by the Polish Prime Minister Donald Tusk earlier

197
00:11:40,800 --> 00:11:44,000
Speaker 3: in the week when he talked about shooting down Russian

198
00:11:44,440 --> 00:11:49,080
Speaker 3: aircraft that came into airspace. But a very significant shift

199
00:11:49,080 --> 00:11:50,439
Speaker 3: and tone there by Donald.

200
00:11:50,160 --> 00:11:53,960
Speaker 2: Trump Russia seems to have been testing you also and

201
00:11:54,120 --> 00:11:57,400
Speaker 2: NATO with these airspace incursions that we've been talking about

202
00:11:57,400 --> 00:12:02,240
Speaker 2: throughout this week, sasan would the aircraft be shot down

203
00:12:02,440 --> 00:12:06,120
Speaker 2: in future? And also what is now the US position

204
00:12:06,200 --> 00:12:06,480
Speaker 2: on that?

205
00:12:07,480 --> 00:12:11,480
Speaker 3: Yeah, it's an interesting one. Yesterday the NATO had a

206
00:12:11,520 --> 00:12:13,840
Speaker 3: meeting of the North Atlantic Council, which is their main

207
00:12:13,880 --> 00:12:17,520
Speaker 3: decision body here in Brussels. It had been called by

208
00:12:17,679 --> 00:12:21,920
Speaker 3: Estonia because of the incursions into its airspace. But while

209
00:12:21,960 --> 00:12:24,240
Speaker 3: that was happening, if you like, we were getting confirmation

210
00:12:24,400 --> 00:12:28,400
Speaker 3: from Denmark that Copenhagen Airport had been closed for several

211
00:12:28,520 --> 00:12:32,240
Speaker 3: hours because of drone incursions there. So Mark Ruta, the

212
00:12:32,320 --> 00:12:35,720
Speaker 3: NATO Secretary General, was asked a specific question, I mean,

213
00:12:35,760 --> 00:12:38,880
Speaker 3: what is the position vs. V and NATO and these

214
00:12:39,400 --> 00:12:42,400
Speaker 3: drone incursions? Now, he was very careful in his wording.

215
00:12:42,480 --> 00:12:45,320
Speaker 3: He said, you know, if this is intentional or not?

216
00:12:45,559 --> 00:12:48,520
Speaker 3: He said a few times he said NATO is prepared

217
00:12:48,559 --> 00:12:51,760
Speaker 3: to defend every inch of its territory.

218
00:12:52,160 --> 00:12:52,439
Speaker 4: Now.

219
00:12:53,120 --> 00:12:55,560
Speaker 3: He was asked as well about those comments O more

220
00:12:55,960 --> 00:12:59,880
Speaker 3: belligerent to be like comments by President or Prime Minister

221
00:13:00,240 --> 00:13:02,480
Speaker 3: Donald Tusker in the week, and he was keen to

222
00:13:02,559 --> 00:13:05,079
Speaker 3: kind of say there was no daylight between the two saying, Look,

223
00:13:05,240 --> 00:13:08,480
Speaker 3: Tusk is saying what I'm saying, if necessary, and NATO

224
00:13:08,520 --> 00:13:10,520
Speaker 3: will act, and you know we're not at that point,

225
00:13:10,600 --> 00:13:12,920
Speaker 3: but it is ready and that is a decision of

226
00:13:12,960 --> 00:13:15,400
Speaker 3: the Supreme Allied Commander. You know, we are ready to

227
00:13:15,480 --> 00:13:20,679
Speaker 3: respond if needed. So we got the sense from the

228
00:13:20,800 --> 00:13:25,440
Speaker 3: NATO Secretary General that obviously NATO, the Alliance is very

229
00:13:25,559 --> 00:13:28,040
Speaker 3: much on alert here. The meeting that was called by Estonia,

230
00:13:28,080 --> 00:13:31,320
Speaker 3: and indeed Estonia also spoke of the UN Security Council

231
00:13:31,400 --> 00:13:33,719
Speaker 3: on Monday in New York. I mean, this was quite unusual.

232
00:13:34,320 --> 00:13:37,880
Speaker 3: There's now a lot of concern about these repeated drone incursions,

233
00:13:38,040 --> 00:13:41,360
Speaker 3: particularly in Copenhagen. Just next week, Caroline is going to

234
00:13:41,360 --> 00:13:44,880
Speaker 3: be a big meeting of EU leaders and European leaders,

235
00:13:45,040 --> 00:13:48,680
Speaker 3: two day meeting in Copenhagen. So the timing of this

236
00:13:48,840 --> 00:13:51,600
Speaker 3: incursion that closed the airport is quite interesting.

237
00:13:52,520 --> 00:13:55,480
Speaker 2: Yes, indeed, and there has been a lot going on

238
00:13:55,840 --> 00:13:57,960
Speaker 2: at the UN and also on the sidelines. I mean

239
00:13:58,000 --> 00:14:01,480
Speaker 2: Trump's speech. You mentioned how sort of aggressive it was,

240
00:14:03,040 --> 00:14:06,679
Speaker 2: and how President Trump was touting what he sees as

241
00:14:06,720 --> 00:14:10,240
Speaker 2: his big wins, ending war, wasn't doing trade deals and

242
00:14:10,400 --> 00:14:15,640
Speaker 2: ending immigration into cutting immigration into America. But that very

243
00:14:15,679 --> 00:14:20,360
Speaker 2: harsh criticism of Europe, also of Hamaz, also of the

244
00:14:20,480 --> 00:14:23,000
Speaker 2: UN itself. I mean, the United Nations seems to be

245
00:14:23,080 --> 00:14:25,840
Speaker 2: dealing with the worst crisis in its history.

246
00:14:25,880 --> 00:14:30,840
Speaker 3: Really, yes, And the United States, which is the biggest

247
00:14:30,840 --> 00:14:34,200
Speaker 3: financial contributor by far to the UN, is not on

248
00:14:34,280 --> 00:14:36,600
Speaker 3: board with a lot of what the UN is doing.

249
00:14:36,680 --> 00:14:40,840
Speaker 3: It's already pulled out of some agencies and it effectively

250
00:14:40,880 --> 00:14:43,920
Speaker 3: hasn't paid its bill for the UN since last year.

251
00:14:44,040 --> 00:14:46,920
Speaker 3: So I think the UN Deecretary General has admitted that

252
00:14:47,040 --> 00:14:51,800
Speaker 3: the organization has a liquidity crisis, it has a crisis

253
00:14:51,840 --> 00:14:55,680
Speaker 3: of identity, and it's marking its Asian anniversary this year.

254
00:14:56,200 --> 00:14:58,440
Speaker 3: But it is interesting to Donald Trump hit on some

255
00:14:58,480 --> 00:15:01,520
Speaker 3: of those points. Even he was even critical of the UK.

256
00:15:01,760 --> 00:15:04,720
Speaker 3: Just after his visit. He talked about, you know, the

257
00:15:04,840 --> 00:15:08,119
Speaker 3: policy on wind turbine, saying that they're ruining the Scottish

258
00:15:08,400 --> 00:15:12,960
Speaker 3: and English countryside. He took us wipe at the London mayor,

259
00:15:13,040 --> 00:15:17,360
Speaker 3: said he can. He also talked about climate change, which

260
00:15:17,360 --> 00:15:19,960
Speaker 3: was of a big focus for the UN through its

261
00:15:19,960 --> 00:15:25,200
Speaker 3: cop system, calling it a con job. So yes, a

262
00:15:25,360 --> 00:15:31,280
Speaker 3: very belligerent and kind of isolationist speech by Donald Trump. Now,

263
00:15:31,320 --> 00:15:33,440
Speaker 3: I suppose the other way of looking at this is

264
00:15:33,480 --> 00:15:37,040
Speaker 3: that he did hold a series of bilateral meetings during

265
00:15:37,080 --> 00:15:42,040
Speaker 3: the day with European leaders in particular, also of course

266
00:15:42,240 --> 00:15:45,200
Speaker 3: the Argentinian leader as well, But that I suppose to

267
00:15:45,360 --> 00:15:48,000
Speaker 3: show that there was still an engagement there. He spent

268
00:15:48,080 --> 00:15:52,280
Speaker 3: the day there meeting leaders, having a reception, later having

269
00:15:52,360 --> 00:15:55,560
Speaker 3: serious conversations with people like Vladimir Lensky. So for all

270
00:15:55,600 --> 00:15:59,920
Speaker 3: the rhetoric brawl, the bluster in his speech, there was

271
00:16:00,240 --> 00:16:02,960
Speaker 3: a lot of diplomacy that happened, and the United States

272
00:16:03,000 --> 00:16:04,840
Speaker 3: was at the center of that yesterday in the UN.

273
00:16:05,320 --> 00:16:07,720
Speaker 2: Yes, that's very interesting, isn't it. Suzanne, thank you so

274
00:16:07,760 --> 00:16:09,960
Speaker 2: much for your time and being with us today. That

275
00:16:10,080 --> 00:16:14,200
Speaker 2: is Bloomberg's Brussels bureau chief Suzanne lynch Worth, noting also

276
00:16:14,240 --> 00:16:17,520
Speaker 2: there was some pushback from the UK government on that criticism,

277
00:16:17,560 --> 00:16:20,960
Speaker 2: both from the Energy Secretary Ed Miliband and also from

278
00:16:21,000 --> 00:16:25,480
Speaker 2: the London mayor, Sadiq Khan. Stay with us more from

279
00:16:25,480 --> 00:16:30,040
Speaker 2: Bloomberg Day Bake EUOP coming up after this. Europe's money

280
00:16:30,120 --> 00:16:33,480
Speaker 2: managers have done a string of high profile deals beginning

281
00:16:33,520 --> 00:16:36,800
Speaker 2: to reshape the industry and push back against the large

282
00:16:37,040 --> 00:16:40,320
Speaker 2: US firms like black Rock and Vanguard and JP Morgan

283
00:16:40,680 --> 00:16:44,800
Speaker 2: as passive investment funds have grown in popularity and Europe's

284
00:16:44,800 --> 00:16:49,360
Speaker 2: asset managers are still very fragmented. Bloomberg's asset management reporter

285
00:16:49,480 --> 00:16:53,120
Speaker 2: Leo ken Scherper has penned this piece. He joins me, now,

286
00:16:53,320 --> 00:16:56,480
Speaker 2: good to see you, Leo. What is the situation facing

287
00:16:56,480 --> 00:17:00,360
Speaker 2: Europe's asset managers? And so also I guess that means

288
00:17:00,560 --> 00:17:02,200
Speaker 2: what is driving consolidation?

289
00:17:03,120 --> 00:17:06,320
Speaker 9: Good morning, Caroline, thank you, good to see you as well. Yeah,

290
00:17:06,359 --> 00:17:09,600
Speaker 9: it's certainly not a new dynamic, but the pressure is

291
00:17:09,960 --> 00:17:12,800
Speaker 9: increasing here. First of all, you've got the flight to

292
00:17:13,040 --> 00:17:16,480
Speaker 9: passive products. You've had it for over a decade, which

293
00:17:16,520 --> 00:17:20,160
Speaker 9: means for the asset managers lower revenue margins and at

294
00:17:20,160 --> 00:17:23,200
Speaker 9: the same time you've got rising costs. And for European

295
00:17:23,240 --> 00:17:27,000
Speaker 9: asset managers in particular, they are also seeing coming more

296
00:17:27,040 --> 00:17:29,480
Speaker 9: under pressure from large US firms who have been winning

297
00:17:29,560 --> 00:17:33,280
Speaker 9: market share over the past decade, especially again in passive products.

298
00:17:33,680 --> 00:17:36,440
Speaker 9: And in Europe a lot of asset managers are also

299
00:17:36,480 --> 00:17:39,760
Speaker 9: controlled by banks and insurers, and these you know, big

300
00:17:39,800 --> 00:17:44,320
Speaker 9: firms now wondering you know, actually asset management only makes

301
00:17:44,400 --> 00:17:47,520
Speaker 9: up a very small part of our overall bottom line.

302
00:17:47,880 --> 00:17:51,600
Speaker 9: Should we double down or should we exit? So European

303
00:17:51,600 --> 00:17:54,680
Speaker 9: asset managers overall have have long agreed that they need

304
00:17:54,720 --> 00:17:58,520
Speaker 9: to merge in order to survive. And the new development

305
00:17:58,520 --> 00:18:00,719
Speaker 9: that we've seen over the last twelve months is that

306
00:18:00,720 --> 00:18:04,200
Speaker 9: we're now also seeing action. You know, b MP has

307
00:18:04,240 --> 00:18:07,760
Speaker 9: acquired acc Investment Managers that has created a one point

308
00:18:07,760 --> 00:18:11,000
Speaker 9: eight trillion dollar asset manager. And you also had Generally

309
00:18:11,000 --> 00:18:14,400
Speaker 9: and Natixis agree on a deal that would create Europe's

310
00:18:14,400 --> 00:18:17,800
Speaker 9: second biggest asset manager. And of course we have reported

311
00:18:17,800 --> 00:18:20,920
Speaker 9: the talks between a Mundi and Alliance Global Investors, with

312
00:18:21,240 --> 00:18:23,159
Speaker 9: which are now on hold.

313
00:18:23,560 --> 00:18:28,000
Speaker 2: Okay, so one of the challenges then to get more

314
00:18:28,040 --> 00:18:31,879
Speaker 2: of these deals happening. I mean, what's the kind of

315
00:18:31,880 --> 00:18:32,919
Speaker 2: pipeline looking like?

316
00:18:33,200 --> 00:18:36,600
Speaker 9: Yeah, exactly. So I've just mentioned the talks between a

317
00:18:36,680 --> 00:18:39,920
Speaker 9: Mundi and Alliance and this isn't a very europe specific problem,

318
00:18:40,240 --> 00:18:43,080
Speaker 9: but it's always a question about who gets to take control.

319
00:18:43,480 --> 00:18:46,159
Speaker 9: You know, We've had a lot of infamous co CEO

320
00:18:46,280 --> 00:18:49,240
Speaker 9: structures in corporate history, and that will always be a

321
00:18:49,240 --> 00:18:52,560
Speaker 9: curveball to big deals and asset manager and beyond. And

322
00:18:52,640 --> 00:18:57,360
Speaker 9: the second, the second curveball is, you know, national politics

323
00:18:57,400 --> 00:19:00,199
Speaker 9: definitely gets in the way. There's a fair amount with

324
00:19:00,280 --> 00:19:04,800
Speaker 9: doubt now that generally is deal with, that TIXIS will

325
00:19:04,800 --> 00:19:07,360
Speaker 9: go ahead, in part because the Italian government isn't too

326
00:19:07,400 --> 00:19:10,560
Speaker 9: fond of the prospect that decision makers at Generally, which

327
00:19:10,600 --> 00:19:13,919
Speaker 9: is a major buyer of Italian government bonds, will slip

328
00:19:14,040 --> 00:19:18,240
Speaker 9: further away from the Italian government's influence. And then another

329
00:19:19,119 --> 00:19:23,240
Speaker 9: bit quirk, slightly quirky curveball is that one of the

330
00:19:23,320 --> 00:19:28,520
Speaker 9: drivers behind BMP's acquisition of XIM has been this accounting

331
00:19:28,600 --> 00:19:32,040
Speaker 9: perk known as the Danish compromise, and that allows banks

332
00:19:32,080 --> 00:19:36,520
Speaker 9: to buy asset managers with a preferential capital treatment. Now,

333
00:19:36,720 --> 00:19:39,680
Speaker 9: the ECB has since said earlier this year, to many

334
00:19:39,720 --> 00:19:42,439
Speaker 9: people's surprise, well actually we don't think it's right that

335
00:19:42,480 --> 00:19:45,159
Speaker 9: banks get a better treatment for buying an asset manager.

336
00:19:45,280 --> 00:19:47,960
Speaker 9: Let's let's not do that. So that perk is now gone,

337
00:19:48,400 --> 00:19:51,480
Speaker 9: and you know that is expected to at least slow

338
00:19:51,600 --> 00:19:53,000
Speaker 9: down a bit of the deal making.

339
00:19:55,280 --> 00:19:58,040
Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

340
00:19:58,119 --> 00:20:01,160
Speaker 1: stories making news from London to and beyond.

341
00:20:01,480 --> 00:20:05,480
Speaker 2: Look for us on your podcast feed every morning on Apple, Spotify,

342
00:20:05,560 --> 00:20:07,600
Speaker 2: and anywhere else you get your podcasts.

343
00:20:07,640 --> 00:20:10,720
Speaker 1: You can also listen live each morning on London Dab Radio,

344
00:20:10,760 --> 00:20:13,440
Speaker 1: the Bloomberg Business app, and Bloomberg dot Com.

345
00:20:13,480 --> 00:20:16,239
Speaker 2: Our flagship New York station, is also available on your

346
00:20:16,280 --> 00:20:21,000
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

347
00:20:21,240 --> 00:20:22,560
Speaker 2: I'm Caroline Hepka.

348
00:20:22,400 --> 00:20:24,800
Speaker 1: And I'm Stephen Carol. Join us again tomorrow morning for

349
00:20:24,960 --> 00:20:27,320
Speaker 1: all the news you need to start your day right

350
00:20:27,359 --> 00:20:32,840
Speaker 1: here on Bloomberg Daybreak Europe