WEBVTT - EU Preps US Counter Measures, Safe Havens Rise, Swedish Fighter Jets

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. This is the Bloemberg

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<v Speaker 1>Day by cur podcast. Good morning, It's Monday, the fourteenth

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<v Speaker 1>of July. I'm Caroline Hepkeit in London.

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<v Speaker 2>And I'm Stephen Caroline Brussels. Coming up today, the EU

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<v Speaker 2>lines up allies and countermeasures as Trump threatens a thirty

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<v Speaker 2>percent tariff from the first of August if no agreement

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<v Speaker 2>can be reached.

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<v Speaker 1>Help wanted, but not by humans. UK hiring tumbles as

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<v Speaker 1>AI disrupts jobs and payroll costs search in another worrying

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<v Speaker 1>sign for Starmer and Reeves.

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<v Speaker 2>Plus why Europe's defense ramp up is creating an opportunity

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<v Speaker 2>for Sweden's Grippen fighter jet to take off.

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<v Speaker 1>Let's start with a roundup of our top stories.

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<v Speaker 2>The European Union is looking to step up engagement with

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<v Speaker 2>other countries hit by Trump's tariffs following a slew of

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<v Speaker 2>new threats. Sources tell us that the EU has reached

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<v Speaker 2>out to nations including Canada and Japan and raise the

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<v Speaker 2>prospect of a coordinated response to US levies. The move

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<v Speaker 2>comes after President Trump unleashed his latest tariff ultimatum over

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<v Speaker 2>the weekend. The US President declared that the EU and

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<v Speaker 2>Mexico would face a thirty percent tariff if agreements can't

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<v Speaker 2>be reached by the first of August. European Commissioned President

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<v Speaker 2>or Slavonderlon says she's hopeful of a deal.

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<v Speaker 3>We prefer a negotiated solution.

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<v Speaker 1>This remains the case and we will use the time

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<v Speaker 1>that we have not the.

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<v Speaker 4>First of August.

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<v Speaker 2>Our Savanderlyn says the EU Opini Union will extend the

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<v Speaker 2>suspension of trade countermeasures against the US until the start

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<v Speaker 2>of next month in a bid to secure a deal.

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<v Speaker 2>At the same time, Germany's Chancellor Friedrich Martz said thirty

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<v Speaker 2>percent tariffs would hit exporters in Europe's largest economies to

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<v Speaker 2>the core if a negotiated solution in the trade conflict

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<v Speaker 2>can't be found.

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<v Speaker 1>China's export growth has accelerated for the first time since March.

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<v Speaker 1>Exports rose on year by are higher than expected five

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<v Speaker 1>point eight percent in June to three hundred and twenty

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<v Speaker 1>five billion dollars. Bluebag's mid min Low says the pickup

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<v Speaker 1>was driven by a reduction in the US tariffs and

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<v Speaker 1>robust demand from key overseas markets.

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<v Speaker 5>The exports are really basted by the trade trews the

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<v Speaker 5>front loading of shipment's economists have been telling us that

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<v Speaker 5>we really have to prepare for a potential, you know,

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<v Speaker 5>fall off in demand for exports in the second half

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<v Speaker 5>of the year. And of course we are still waiting

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<v Speaker 5>for the mid August deadline when the temporary truths will expire,

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<v Speaker 5>and some economists believe it's still a possibility that maybe

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<v Speaker 5>the tariff levels could still increase in the later half

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<v Speaker 5>of this year, So there's still a lot of uncertainty there.

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<v Speaker 1>Mid min Low speaking there, the US tariffs on Chinese

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<v Speaker 1>goods have been cut back to around fifty five percent,

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<v Speaker 1>down from as high as one hundred and forty five

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<v Speaker 1>percent in early April. However, Beijing faces mounting risks from

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<v Speaker 1>Washington's evolving trade strategy. Treasury Sexuri Scott best Center is

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<v Speaker 1>expected to meet his Chinese counterpart in the coming weeks.

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<v Speaker 2>Bloomberg understands that Jane Street has deposited over forty eight

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<v Speaker 2>billion rupees the equivalent of five hundred and sixty four

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<v Speaker 2>million dollars in an escrow account to comply with an

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<v Speaker 2>order from India's market regulator. It comes after these Securities

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<v Speaker 2>and Exchange Board of India temporarily banned the trading giant

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<v Speaker 2>from accessing the local market over allegations of index manipulation.

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<v Speaker 2>The deposit enables Jane Street to resume trading in India,

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<v Speaker 2>but sources say the firm does not intend to return

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<v Speaker 2>to trading in local equity options. While Jane Street has

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<v Speaker 2>not commented on the latest development, it has previously stated

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<v Speaker 2>that it strongly rejects the premise and substance of the

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<v Speaker 2>regulator's order, calling it fundamentally mistaken about its trades now here.

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<v Speaker 1>In the UK, hiring by businesses is down by the

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<v Speaker 1>most in nearly two years, according to data from the

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<v Speaker 1>consultancy KPMG and the Recruitment and Employment Confederation. The numbers

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<v Speaker 1>come as employers show signs of dialing back hiring for

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<v Speaker 1>jobs likely to be affected by artificial intelligence. Bloomberg tu

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<v Speaker 1>Adebayo has more.

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<v Speaker 6>Online job postings in the UK have dropped thirty one

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<v Speaker 6>percent in the three months to May compared to twenty

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<v Speaker 6>twenty two. According to McKinsey analysis, The decline is being

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<v Speaker 6>felt most in sectors with the potential to be significantly

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<v Speaker 6>altered by AI, including areas such as tech and finance.

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<v Speaker 6>Data shows job for hostings for these sorts of roles

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<v Speaker 6>dropped almost twice as much as others. The trend presents

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<v Speaker 6>another drag on a job market already contending with tax

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<v Speaker 6>increases and stalling economic growth. In London, Tia Adebayo Bloomberg

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<v Speaker 6>Radio Britain.

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<v Speaker 2>Has announced today for the state visit from US President

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<v Speaker 2>Donald Trump. The country will host the American leader from

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<v Speaker 2>the seventeenth of September after Prime Minister Keir Starmer invited

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<v Speaker 2>Trump for a rare second visit. Bloombergs James Wilcock has.

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<v Speaker 7>More flashy can get you a long way. In Britain's case,

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<v Speaker 7>flattery seems to have helped Keir Starmer secure a twenty

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<v Speaker 7>percentage point lower tariff rate than that of the EU,

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<v Speaker 7>which would be a major coup if it holds and

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<v Speaker 7>global leaders admit to taking notes from this moment, Can.

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<v Speaker 8>I present a letter from m King to take it

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<v Speaker 8>away in.

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<v Speaker 9>Rash oh as well, well, that is really nice.

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<v Speaker 8>A very special letter. I think the last state visit

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<v Speaker 8>was a tremendous success. His Matchley King wants to make

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<v Speaker 8>this even better than that. So this is this is

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<v Speaker 8>truly historic, an unprecedented second visit so can Stam perform

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<v Speaker 8>a second flourish and leave the UK's pageantry industry into

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<v Speaker 8>real gains on trade and security.

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<v Speaker 7>From the US leader in London, James Wilcock, Bloomberg Radio.

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<v Speaker 1>President Donald Chomp says that the US will send more

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<v Speaker 1>Patriot air defense batteries to Ukraine as long as Europe pays.

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<v Speaker 1>The move is a change of heart for the US leader,

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<v Speaker 1>who had argued that sending more arms would delay any

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<v Speaker 1>peace deal. Ukraine had been receiving US weapons, but only

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<v Speaker 1>with money remaining from Joe Biden's time in office. President

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<v Speaker 1>Trump says that he won't be footing the bill for

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<v Speaker 1>the new deliveries.

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<v Speaker 9>I haven't agreed on the number yet, but they're gonna

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<v Speaker 9>have some because they do need protection. But the European

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<v Speaker 9>Union is paying for it. We're not paying any big port,

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<v Speaker 9>but we will send it. It'll be business for US,

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<v Speaker 9>and we will send them patriots, which they desperately need.

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<v Speaker 1>The President added that he is very disappointed with Russian

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<v Speaker 1>President Vladimir Putin. NATO Chief Mark Russa is scheduled to

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<v Speaker 1>meet with Trump later today, as Axios reports that Trump

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<v Speaker 1>will announce a new plan for Ukraine that also includes

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<v Speaker 1>offensive weapons.

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<v Speaker 2>And the Sports and Asianic Center is captured as first

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<v Speaker 2>Wimbledon title after defeating the defending champion, Carlos Alcaraz in

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<v Speaker 2>four sets. Speaking after the match, the Italian world number

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<v Speaker 2>one acknowledge the challenges he's faced this year.

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<v Speaker 10>I'm very emotional now if I don't cry, but it

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<v Speaker 10>feels feels emotional because only me and the people who

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<v Speaker 10>are close to me know exactly what we have been

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<v Speaker 10>through on and off the court, and it has been

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<v Speaker 10>everything except easier.

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<v Speaker 2>Alex Centner, who also served a three month doping ban

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<v Speaker 2>earlier in the year. Speaking there, that's where chelseacuins the

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<v Speaker 2>Football Club World Cup title, beating Paris anger Man three

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<v Speaker 2>nil in the final. The London side were presented with

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<v Speaker 2>the trophy by US President Donald Trump at the MetLife

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<v Speaker 2>Stadium in New Jersey.

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<v Speaker 1>Those are top stories for you this morning. Let's have

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<v Speaker 1>a look at markets where stop futures are tumbling right

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<v Speaker 1>now for Europe down by half of one percent for

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<v Speaker 1>the U of stocks, fifty futures, real concerns around President

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<v Speaker 1>Trump's tariff threat of thirty percent against europe s and

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<v Speaker 1>P five founded evening futures also annursing some declines, down

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<v Speaker 1>four tenths this morning, looking at the Euro marginally lower

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<v Speaker 1>against the dollar, down about a tenth of one percent

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<v Speaker 1>for the Euro one sixteen seventy five. The Mexican pay

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<v Speaker 1>so is also down two terms against the dollar because

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<v Speaker 1>it's another country in the sites of President Trump with tariff's.

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<v Speaker 1>Asian eggities are mixed. You've got the topics up at

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<v Speaker 1>the costpit also seeing some gains, but we've had some declines,

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<v Speaker 1>for example for the Taiwanese stock market looking at treasure

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<v Speaker 1>yields hovering about four forty one. The only other really

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<v Speaker 1>big notable move again is in bitcoin one hundred and

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<v Speaker 1>twenty one thousand dollars, so it's breaking has broken through

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<v Speaker 1>another record high for bitcoin. Those are the market.

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<v Speaker 4>Stephen.

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<v Speaker 2>In a moment, we'll bring you the latest on the

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<v Speaker 2>US EU trade moves, plus why Sweden's fighter jet industry

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<v Speaker 2>could be poised for takeoff. But another story we've been

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<v Speaker 2>reading this morning from our opinion Columnst. Howard Troy One

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<v Speaker 2>who has been writing about getting healthy again. While a

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<v Speaker 2>little bit older at sixty six, I decided to get

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<v Speaker 2>healthy again. As the essay that he's written for Bloomberg's

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<v Speaker 2>weekend edition with some interesting I mean, we've like to

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<v Speaker 2>feature Horod's writing a lot, because, yes, he writes beautifully

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<v Speaker 2>and in a very sort of relatable way about some

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<v Speaker 2>of the kind of challenges he's had, like taking up

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<v Speaker 2>running in his sixties. Again he gave it up earlier

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<v Speaker 2>because of an injury as well, and he's kind of

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<v Speaker 2>talking about the challenges of trying to be as active

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<v Speaker 2>as possible, yes, while also not compromising entirely on the

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<v Speaker 2>things that he enjoys in life, like eating out.

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<v Speaker 4>Yeah.

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<v Speaker 1>Absolutely, he's a Bob Vivarce. He just is such a

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<v Speaker 1>great writer also that he often goes back to, you know,

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<v Speaker 1>ancient texts, which I just love. You know, he brings

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<v Speaker 1>up lots of kind of Roman writers and he's got

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<v Speaker 1>all sorts of interesting quotes that he includes in kind

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<v Speaker 1>of philosophical thinking. But it was based on science because

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<v Speaker 1>he was looking at this recent scientific study that anybody

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<v Speaker 1>who might be a little bit older have probably spotted,

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<v Speaker 1>which is that apparently we age at certain points. It

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<v Speaker 1>doesn't sort of happen gradually, but around the age of

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<v Speaker 1>forty four and around the age of sixty, you can

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<v Speaker 1>kind of age quite rapidly, so he was trying to

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<v Speaker 1>reverse that target and just.

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<v Speaker 2>Like that effect, you know, and just like that, you're

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<v Speaker 2>feeling much older than perhaps you were last week or

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<v Speaker 2>the week before. There's great advice in there though from

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<v Speaker 2>Horod too, and essentially, I mean a lot of it

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<v Speaker 2>just comes down to don't give up and doing a

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<v Speaker 2>little is better than doing nothing at all. And you

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<v Speaker 2>will put a link to the piece in our show notes.

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<v Speaker 2>It's a great read this morning.

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<v Speaker 1>Now let's bring you more on our top story. So

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<v Speaker 1>the EU is preparing to step up contacts with the

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<v Speaker 1>likes of Canada and Japan after Donald Trump threatened to

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<v Speaker 1>impose tariffs of thirty percent on its exports. EU Trade

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<v Speaker 1>Minister is a meeting in Bussels today to discuss the

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<v Speaker 1>latest our Bussels Bureau chief Suzanne Lynch is joining us

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<v Speaker 1>now for more. Susan, good morning. What do we know

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<v Speaker 1>about the latest steps that the EU is planning. Is

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<v Speaker 1>this about trying to form alliances against the US?

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<v Speaker 3>Well, we reported late last night that the EU is

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<v Speaker 3>preparing to step up engagement with other countries that are

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<v Speaker 3>hit by the Trump tariffs. Mainly, it seemed after this

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<v Speaker 3>week of Donald Trump digging down on his trade rhetoric,

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<v Speaker 3>sending those letters to various trading partners, and then at

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<v Speaker 3>the weekend announcing or threatening the European Union and Mexico

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<v Speaker 3>with new tariffs. So we know that there is plan

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<v Speaker 3>out coordinate a lot better on this. But at the

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<v Speaker 3>same time, we've got the EU at the other hand,

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<v Speaker 3>signally quite strongly by Ursula vonderlyon on Sunday that they

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<v Speaker 3>don't want to escalate at the moment, and that they're

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<v Speaker 3>holding back implementing any more countermeasures until they try and

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<v Speaker 3>get some kind of a deal before this new August

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<v Speaker 3>first deadline.

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<v Speaker 2>Suzan, talk to us about the strategy that the EU

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<v Speaker 2>is taking here, Because the decision not to retaliate is

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<v Speaker 2>a choice, does it indicate that they are hopeful that

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<v Speaker 2>progress can be made between now and the first of August.

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<v Speaker 3>Well, it's interesting timing because today, as you mentioned, EU

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<v Speaker 3>trade ministers are meeting here in Brussels, but today is

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<v Speaker 3>also the deadline by which as suspended tariffs on stealing

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<v Speaker 3>aluminum expire. So the EU had a choice today as

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<v Speaker 3>it happens, whether to extend that suspension or to enact

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<v Speaker 3>that suspension again. And those tariffs again. So we've heard

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<v Speaker 3>very strongly from vonder lyon that at the moment today

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<v Speaker 3>the EU won't do that that it will allow that

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<v Speaker 3>suspension to continue. So it did have that option if

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<v Speaker 3>you like, and they have chosen not to do that. Now,

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<v Speaker 3>what it's interesting is that we you know, we're hearing that,

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<v Speaker 3>for example, from President Macron. If you look at the

0:12:32.360 --> 0:12:35.280
<v Speaker 3>language he used on Saturday when he responded to this

0:12:35.360 --> 0:12:37.840
<v Speaker 3>kind of shock move by Trump. He talked about the

0:12:37.880 --> 0:12:41.120
<v Speaker 3>fact that the Commission has to protect European interests. He

0:12:41.240 --> 0:12:46.360
<v Speaker 3>talked about preparing series of countermeasures, including this trade tool

0:12:46.400 --> 0:12:49.319
<v Speaker 3>called the anti coercion instruments that could you know, allow

0:12:49.360 --> 0:12:52.600
<v Speaker 3>the EU to hit back even stronger. He mentioned those things. Now,

0:12:52.720 --> 0:12:55.720
<v Speaker 3>the EU hasn't gone there yet, and I say it

0:12:55.800 --> 0:12:57.839
<v Speaker 3>is at this moment deciding not to go any further.

0:12:57.960 --> 0:13:00.160
<v Speaker 3>But it will be interesting to see, you know, if

0:13:00.200 --> 0:13:03.160
<v Speaker 3>there is some pushback now today when EU trade ministers

0:13:03.200 --> 0:13:06.320
<v Speaker 3>meeting that some countries perhaps believe, look, the EU needs

0:13:06.320 --> 0:13:08.439
<v Speaker 3>to be stronger on this because you know, as we've

0:13:08.480 --> 0:13:10.959
<v Speaker 3>discussed before, the EU does have these other measures that

0:13:11.000 --> 0:13:14.800
<v Speaker 3>can take It has other sanctions that it can implement

0:13:15.320 --> 0:13:16.440
<v Speaker 3>if it chooses to do so.

0:13:17.200 --> 0:13:19.680
<v Speaker 1>Okay, well, let's watch that closely. Suzanne, thank you so

0:13:19.800 --> 0:13:21.880
<v Speaker 1>much for being with us this morning. That is Bloomberg's

0:13:21.960 --> 0:13:24.080
<v Speaker 1>Brussels pier A chief, Suzanne Lynch.

0:13:25.280 --> 0:13:27.280
<v Speaker 2>The move to ramp up defense spending in Europe is

0:13:27.280 --> 0:13:29.920
<v Speaker 2>presenting an opportunity for the gripp and Jet, made by

0:13:29.960 --> 0:13:33.440
<v Speaker 2>Sweden's SAAB. The company hasn't secured an export order since

0:13:33.440 --> 0:13:35.960
<v Speaker 2>twenty fourteen, but that might be about to change. Our

0:13:36.000 --> 0:13:39.560
<v Speaker 2>reporter Christopher Youngstadt joins us now for more from Stockholm. Christopher,

0:13:39.640 --> 0:13:41.720
<v Speaker 2>good morning. Is this the moment then for the Grip

0:13:41.760 --> 0:13:42.480
<v Speaker 2>and fighter jet?

0:13:43.320 --> 0:13:46.280
<v Speaker 4>It should does look like it's a moment definitely. As

0:13:46.320 --> 0:13:49.240
<v Speaker 4>you mentioned, it's been over a decade since saw one

0:13:49.280 --> 0:13:51.960
<v Speaker 4>a major export order for it. It's grouping chats, but

0:13:52.000 --> 0:13:55.120
<v Speaker 4>in the past year both Thailand and Columbia have decided

0:13:55.160 --> 0:13:57.439
<v Speaker 4>that they do want to place orders and these are

0:13:57.440 --> 0:14:00.720
<v Speaker 4>now being negotiated with SAB targeting deals being finalized this

0:14:00.840 --> 0:14:03.200
<v Speaker 4>year and the next in line could be ordered from

0:14:03.240 --> 0:14:07.280
<v Speaker 4>Peru and the Philippines, with Brazil potentially also boosting its

0:14:07.400 --> 0:14:10.680
<v Speaker 4>existing contract for thirty six jets by twenty five percent.

0:14:10.920 --> 0:14:14.240
<v Speaker 4>And as SAB CEO Michael Johansson said in his typical

0:14:14.360 --> 0:14:17.480
<v Speaker 4>understated fashion, it's been a while since the company was

0:14:17.520 --> 0:14:19.920
<v Speaker 4>in such an intensive period on the glip in front.

0:14:21.400 --> 0:14:24.160
<v Speaker 1>Well, lot Keith Martin's F thirty five fighter jets of

0:14:24.160 --> 0:14:28.120
<v Speaker 1>course of dominated order books in Europe, but here too,

0:14:28.160 --> 0:14:32.040
<v Speaker 1>countries sort of looking for alternatives.

0:14:31.520 --> 0:14:35.120
<v Speaker 4>Right, Yeah, Thirteen European countries are our current F thirty

0:14:35.120 --> 0:14:40.200
<v Speaker 4>five customers, and that's including Sweden's neighbors Norway, Denmark and Finland,

0:14:40.640 --> 0:14:43.280
<v Speaker 4>while SAB in its turn, has just leased griepin jet

0:14:43.400 --> 0:14:46.160
<v Speaker 4>to the Czech Republic and Hungary. The fact that Sweden

0:14:46.200 --> 0:14:49.120
<v Speaker 4>hasn't been a NATO member has historically been one of

0:14:49.160 --> 0:14:52.480
<v Speaker 4>their competitor's main arguments for not buying the Glippen, but

0:14:52.560 --> 0:14:54.960
<v Speaker 4>with Sweden now a member, that's of course gone from

0:14:54.960 --> 0:14:58.200
<v Speaker 4>their playbooks. What's potentially an even bigger change, however, is

0:14:58.240 --> 0:15:01.400
<v Speaker 4>the foreign policy shift of the Trumpet administration, pulling back

0:15:01.440 --> 0:15:04.440
<v Speaker 4>support as we all know, for Ukraine and raising doubts

0:15:04.480 --> 0:15:08.360
<v Speaker 4>about US commitment to Europe's defense, which is quite frankly

0:15:08.440 --> 0:15:10.880
<v Speaker 4>uncharted territory for European leaders.

0:15:11.760 --> 0:15:13.840
<v Speaker 2>So what's the hope then, in terms of new orders

0:15:13.840 --> 0:15:15.800
<v Speaker 2>for the GREEP and JATA and for SAB that makes

0:15:15.840 --> 0:15:16.680
<v Speaker 2>it well.

0:15:16.920 --> 0:15:20.120
<v Speaker 4>SAW executives have long emphasized that the procurement of a

0:15:20.160 --> 0:15:23.120
<v Speaker 4>fighter jet is as much a political process as it

0:15:23.160 --> 0:15:26.800
<v Speaker 4>is a purely technical one. Buying weapons and military gear

0:15:26.880 --> 0:15:29.440
<v Speaker 4>from the US has long been viewed as a fool

0:15:29.440 --> 0:15:33.360
<v Speaker 4>proof method to reach guaranteed friendship and support, but that

0:15:33.480 --> 0:15:35.880
<v Speaker 4>is now, of course no longer the case, with some

0:15:36.040 --> 0:15:39.320
<v Speaker 4>security analysts believing that trust in the US will never

0:15:39.360 --> 0:15:43.200
<v Speaker 4>go back to pre Trump levels. Consequently, European countries are

0:15:43.240 --> 0:15:46.280
<v Speaker 4>now trying to tow the line between lessening their dependence

0:15:46.360 --> 0:15:49.960
<v Speaker 4>on the US and maintaining a healthy relationship as allies.

0:15:50.200 --> 0:15:53.160
<v Speaker 4>Some are starting to consider jewel fleets, that is, mixing

0:15:53.240 --> 0:15:56.640
<v Speaker 4>European made fighters with their thirty fives and this to

0:15:56.640 --> 0:15:59.240
<v Speaker 4>make up for a potentially lower level of US air

0:15:59.280 --> 0:16:02.440
<v Speaker 4>support in the reas, and some analysts expect European countries

0:16:02.440 --> 0:16:04.880
<v Speaker 4>to spend a far smaller portion of its defense spending

0:16:04.920 --> 0:16:07.800
<v Speaker 4>on US equipment over time, as such supplies more of

0:16:07.880 --> 0:16:09.160
<v Speaker 4>a song fighter aircarecraft.

0:16:10.160 --> 0:16:12.880
<v Speaker 2>This is Bloomberg Daybreak Europe, your morning brief on the

0:16:12.960 --> 0:16:16.000
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