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

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Speaker 2: This is the Blueberg Day BAQ podcast, available every morning

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Speaker 2: on Apple, Spotify or wherever you listen. It's Wednesday, the

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Speaker 2: nineteenth of March. Here in London. I'm Caroline, Hepkip and.

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Speaker 3: I'm Stephen Carroll. Coming up today. Differing accounts emerge of

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Speaker 3: the Trump Putin call as the Russian leader refuses to

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Speaker 3: back a thirty day ceasefire in Ukraine.

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Speaker 2: Morgan Stanley plans to cut around two thousand jobs to

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Speaker 2: keep a lid on costs.

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Speaker 3: Plus, has Paris peaked? We look at why global banks

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Speaker 3: have put their hiring plans in the French capital on hold.

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

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Speaker 3: Russia' Vladimir Putin has refused President Trump's request for a

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Speaker 3: thirty day Ukraine ceasefire during a phone call on ending

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Speaker 3: the conflict, as the two sides offered seemingly conflicting accounts

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Speaker 3: of their discussion. The Kremlin says Putin agreed only to

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Speaker 3: decrease attacks on Ukraine's energy infrastructure, while imposing several can

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Speaker 3: additions for a lasting ceasefire, including suspending US arms and

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Speaker 3: intelligence support for Ukraine However, the White House redoubt says

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Speaker 3: Trump and Putin agreed to an energy and infrastructure ceasefire.

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Speaker 3: Speaking to Fox News as Laura Ingram after the call,

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Speaker 3: Trump denies that Putin demanded an end to Western military

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Speaker 3: aid for Ukraine. We had a great quote lasted almost

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Speaker 3: two hours.

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Speaker 1: Talked about a lot of things and toward getting it

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Speaker 1: to peace, and we talked about other things.

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Speaker 3: Also, was there.

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Speaker 4: Non negotiables mentioned by Putin? It was reported that I

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Speaker 4: think the Krumlin media actually stated that he demanded an

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Speaker 4: immediate cessation of aid to Ukraine in order to get

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Speaker 4: to this multi step deal.

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Speaker 1: No, we didn't talk about aid. Actually we didn't talk

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Speaker 1: about aid at all.

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Speaker 4: We talked about a lot of things, but aid was

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Speaker 4: never discussed.

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Speaker 3: Although Ukraine was the focus of the coll initiated by Trump.

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Speaker 3: A White House statement also said the two leaders discussed

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Speaker 3: improving bilateral ties, including quote enormous economic deals and geopil

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Speaker 3: a constability when peace has been achieved.

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Speaker 2: The call between presidents Putin and Trump comes as European

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Speaker 2: allies look to accelerate arms shipments to Ukraine ahead of

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Speaker 2: a potential full cease fire. Speaking to Bloomberg, the UK's

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Speaker 2: Foreign Secretary, David Lammy confirmed that he discussed the possibility

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Speaker 2: with the EU's top diplomat, Kayak Kalas during her trip

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Speaker 2: to London yesterday. Meanwhile, European Union Commissioned President Ursula Vondeline

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Speaker 2: yesterday re emphasized the need for the bloc to be

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Speaker 2: able to defend itself in a future confrontation with Russia.

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Speaker 2: The era of the peace dividend is long gone. The

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Speaker 2: security architecture that we relied on can no longer be

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Speaker 2: taken for granted. The age of sphears of influence and

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Speaker 2: power competition is well and truly back. Fond Dealin also

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Speaker 2: announced plans to set up a European military sales mechanism

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Speaker 2: to help pool demand and create an EU wide market. Earlier,

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Speaker 2: this marked the Bofseel's propose issuing one hundred and fifty

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Speaker 2: billion euros in loans to member states to boost defense spending.

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Speaker 2: At a national level.

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Speaker 3: Germany's parliament has approved Friedrich Mertz's landmark infrastructure and defense

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Speaker 3: spending package. The Chancellor in Waitings plan to largely exclude

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Speaker 3: defense spending from the death break received the two thirds

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Speaker 3: majority needed to change the country's constitution. It would also

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Speaker 3: set up a five hundred billion euro fund to invest

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Speaker 3: in the country's aging infrastructure. Mertz called at the start

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Speaker 3: of a United europe Defense Force in Shidun Court.

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Speaker 5: This decision that we are taking today on defense readiness

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Speaker 5: in a comprehensive sense for our country can therefore be

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Speaker 5: nothing less than the first major step towards a new

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Speaker 5: European defense community.

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Speaker 3: O Obersten for Tidi Gump's good mind Shoft. Mertz's historic

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Speaker 3: plan was driven by US President Donald Trump's shift away

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Speaker 3: from the Transatlantic Alliance and two years of economic contraction

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Speaker 3: in Germany. The country's sixteen states vote on the bill

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Speaker 3: this Friday. If it passes, it will become law now.

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Speaker 2: One of Wall Street's largest banks is planning a dramatic

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Speaker 2: cull of its workforce to cut costs amid recent market

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Speaker 2: and economic uncertainty. BlueBag Sea Adebayo has the story.

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Speaker 6: Morgan Stanley is preparing to cut two thousand of its

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Speaker 6: workers in the coming month. It's the first major staff

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Speaker 6: related action under new CEO Ted Pick. Although trimming will

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Speaker 6: take place across the firm, Bloomberg understands its roughly fifteen

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Speaker 6: thousand financial advisors will remain exempt. Some of the changes

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Speaker 6: are performance related, whilst a small portion reflect the impact

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Speaker 6: of artificial intelligence and automation. According to those familiar with

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Speaker 6: the matter, shares of Morgan Stanley are down six percent

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Speaker 6: so far this year. The worst performance among major US

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Speaker 6: banks in London TE were at a bio Bloomberg Radio.

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Speaker 3: The Bank of Japan has left its policy rate unchanged

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Speaker 3: at zero point five percent, while signaling on an ease

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Speaker 3: about global trade te A reference to trade policies was

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Speaker 3: added to the central Bank's list of risks in the

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Speaker 3: outlook and a statement today. The move comes around two

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Speaker 3: weeks before President Trump's threatened additional reciprocal tariffs so are

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Speaker 3: due to be announced here.

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Speaker 2: In the UK, the government has announced plans to cut

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Speaker 2: its welfare bill, aiming to save five billion pounds a

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Speaker 2: year by twenty thirty. In a move that may spark

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Speaker 2: a political rebellion. Labour intends to tighten the criteria disabled

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Speaker 2: people and young adults need to meet to claim support.

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Speaker 2: The Work and Pension Secretary Liz Kendall promised the social

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Speaker 2: security system will always be there for people who really

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Speaker 2: need it.

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Speaker 7: That is a principle. We will never compromise on you.

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Speaker 7: But disabled people and people with health conditions who can

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Speaker 7: work that should have the same right choices and chances

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Speaker 7: to work as everybody else.

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Speaker 2: Kendall's plan has been met with anger, though from her

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Speaker 2: own backbenches, with one MP saying that they show a

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Speaker 2: quote basic lack of humanity. Two point nine million people

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Speaker 2: are out of work due to ill health in Britain,

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Speaker 2: which is a third more than before the COVID pandemic.

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Speaker 3: Two astronauts whose eight day space mission turned into nine

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Speaker 3: months have arrived back on Earth. But Willmore and Sonny

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Speaker 3: Williams returned in a SpaceX craft with two other crew members,

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Speaker 3: NASA's Nick Haig and Russian cosmotaut cosmonaut Alexander Gorbonov. The

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Speaker 3: capsule carrying the four landed off the coast of Florida

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Speaker 3: a few hours ago. Here's NASA's Sandra Jones from SpaceX

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Speaker 3: mission control.

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Speaker 2: Copy splash down.

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Speaker 3: We see main shoots, cuts, Nick, alex butch Sunny on

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Speaker 3: behalf of SpaceX.

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Speaker 2: Welcome home.

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Speaker 3: Willmore and William's trip is the sixth longest continuous day

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Speaker 3: on the International Space Station by NASA astronauts. After technical

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Speaker 3: issues with their Boeing spacecraft led to their extended stay.

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Speaker 2: Those stories, Let's get to the markets. The hang sing

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Speaker 2: Tech index retreating ahead of ten cent earnings. Bank of

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Speaker 2: America says that China's equities rally may face a meaningful

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Speaker 2: correction soon. US and European stock futures are up this morning,

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Speaker 2: although Wall Street did sell off on Tuesday. The S

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Speaker 2: and P five hundred fell more than one percent, the

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Speaker 2: Magnificent seven declining two and a half percent, although European

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Speaker 2: stocks outperformed again. The US Stocks fifty closed up by

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Speaker 2: zero point seven percent this morning. The Japanese yen weakening

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Speaker 2: slightly after that BOJ decision to hold interest rates. The

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Speaker 2: Feds expected to hold today too. The dollar and treasuries

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Speaker 2: are steady. Gold, though has hit a record high. Fresh

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Speaker 2: record high has now treenty a three thousand and forty

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Speaker 2: three dollars. Oil has been retracing down about half of

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Speaker 2: one percent. Those are the markets.

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Speaker 3: In a moment, we'll bring you more on what a

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Speaker 3: marriage from that phone call between Vladimir Putin and Donald Trump,

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Speaker 3: plus has Paris peaked as a financial center, But first

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Speaker 3: on the story that caught a iron the ternal this morning.

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Speaker 3: As someone who's nash particularly good cook, I can cook.

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Speaker 3: I'm just not great at it. This is a very

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Speaker 3: in depth dive into pepper. Is pepper the unsung hero

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Speaker 3: of your kitchen? Caroline?

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Speaker 2: Oh yeah, I love it? You know fancy peppercorn. Bloomberg's

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Speaker 2: Matthew Cronsburg has a story out in BusinessWeek this week.

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Speaker 2: But apparently this is the hottest new menu menu trend

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Speaker 2: luxury peppercorns, and apparently chefs are even now name checking

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Speaker 2: all the various varieties. Telly cherry, penja, Cambodian campos.

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Speaker 3: Have you heard of any of these before you read this?

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Speaker 2: Yes, I had had a cheli Telly cherry, which is

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Speaker 2: quite popular.

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Speaker 3: I mean they're on load for a chef of special

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Speaker 3: peppercorns in your house.

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Speaker 2: I don't, but I do cook.

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Speaker 3: You would like ones?

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Speaker 2: I'd like to have that much time? But yes, this,

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Speaker 2: But apparently also some of these chefs are starting to

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Speaker 2: sell the peppercorns that they use on their website. So

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Speaker 2: you know, you don't just get the dishes, the plates

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Speaker 2: and the cutler. You can buy the peppercorns too.

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Speaker 3: And at a price. I mean I noticed they range

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Speaker 3: up to eighteen dollars for four ounces, about one hundred

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Speaker 3: and ten grand papers, which seems fifteen quid seems like

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Speaker 3: quite a lot anyway. Full story on Bloomberg dot Com

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Speaker 3: and on the Terminal.

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Speaker 2: Now, President Trump's high profile but controversial Ukraine thirty day

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Speaker 2: ceasefar proposal has been rejected by President Putin. The Russian

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Speaker 2: leader has agreed to limit a tax on energy infrastructure

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Speaker 2: in a call between Trump and Putin that focused on

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Speaker 2: growing US Russia bilateral relations beyond just Ukraine. Let's dig

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Speaker 2: into this story. Bloomberg's Tony Haupin, who leads our team

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Speaker 2: covering Russia's economy and government, is with us. Now, Tony,

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Speaker 2: good morning. What exactly has been agreed though between the

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Speaker 2: US and Russia? The White House and the Kremlin readoubts

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Speaker 2: seem to say different things.

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Speaker 1: Yes, that's right. They seem to emphasize different elements of

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Speaker 1: the conversation. As you noted that, the Kremlin stress that

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Speaker 1: it saw a key condition of any agreement to a

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Speaker 1: longer term full cease fire as the refusal to supply

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Speaker 1: Ukraine with any intelligence or armaments. That's something that really

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Speaker 1: puts the ball back into Trump's court to go back

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Speaker 1: to Ukraine and decide whether he's going to accept that

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Speaker 1: in order to pressure put further pressure on Kiev. All

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Speaker 1: that Putin really agreed to was a ceasefire against energy infrastructure,

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Speaker 1: and in some ways that even benefits Russia, because one

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Speaker 1: of Ukraine's more effective tactics in this war has been

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Speaker 1: to target all refineries in Russia in order to try

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Speaker 1: and pressure the Russian economy, and presumably that will also

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Speaker 1: be covered by such an agreement. So there was very

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Speaker 1: little given away by Putin. He and Trump agreed to

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Speaker 1: continue talking, and that seems to be the Russian tactic currently,

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Speaker 1: to continue talks while seeding very little.

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Speaker 3: But it appears that Donald Trump is claiming this as

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Speaker 3: a victory for him. Is there is there any merit

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Speaker 3: in that, Well, it doesn't.

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Speaker 1: Have a great deal of choice, because his whole strategy

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Speaker 1: seems to be based upon bringing Russia to the table

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Speaker 1: and to try and negotiate a deal that ends the

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Speaker 1: war in Ukraine, and in some ways those talks sideline

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Speaker 1: Ukraine and sideline Europe, and they're aimed at really striking

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Speaker 1: some sort of bilateral deal and repairing the broader relationship

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Speaker 1: between Russia and the US. If that doesn't work out,

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Speaker 1: then the question gets asked, what is the next step

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Speaker 1: for the US if they're really serious in trying to

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Speaker 1: end this war. And currently President Trump is focused on

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Speaker 1: negotiations and focused on getting Russia to consider ways to

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Speaker 1: halt the fighting, but Putin isn't showing much interest in

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Speaker 1: doing so.

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Speaker 2: Yeah, and so skepticism then surely is the response in Europe,

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Speaker 2: the UK What about Ukraine as the fighting in Ukraine

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Speaker 2: grinds on, Yes, I mean the.

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Speaker 1: UK and Europe have been looking for ways to accelerate

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Speaker 1: armed shipments to Ukraine as a way to bolster Ukraine's

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Speaker 1: position on the battlefield and give it a better chance

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Speaker 1: during negotiations that may emerge with the US and Russia.

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Speaker 1: But again that's going to become an issue of contention

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Speaker 1: now because which is made very clear to Trump that

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Speaker 1: if he wants this thirty day full cease fire, those

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Speaker 1: kind of shipments have to stop. And that implies that

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Speaker 1: the US then will have to go back to Europeans

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Speaker 1: and go back to Kiev and say, well, if we

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Speaker 1: want to hold the war, we're going to have to

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Speaker 1: stop the shipments. That implies that Ugrain's position will be

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Speaker 1: beacon So it's a very difficult position both for Kiev

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Speaker 1: and the US.

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Speaker 3: Okay, Tony Halpin leading our team covering Russia's economics and government.

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Speaker 3: Thank you very much.

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Speaker 2: Now to France, where rising taxes and political turmoil are

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Speaker 2: having a chilling effect on the financial sector. Since last summer,

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Speaker 2: international banks in Paris have quietly shelved expansion plans after

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Speaker 2: years of building its role as Europ's post breaksit financial center.

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Speaker 2: What is happening in Paris? Our finance reporter in France,

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Speaker 2: Claudia Cohen, joins us now for more on this Good morning, Claudia,

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Speaker 2: what's happening in terms of head count at financial firms

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Speaker 2: in Paris.

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Speaker 8: It's like some banks, some big banks like Rugains Stanley

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Speaker 8: or even GP Morgan in Paris, who came with many

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Speaker 8: many people following Brexit referendum, are quietly either cutting a

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Speaker 8: bit of workforce here and there or even the planet before. So,

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Speaker 8: for instance, in the story I'm talking about Morgan Stanley

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Speaker 8: that peak last year, beginning of last year was saying

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Speaker 8: that Paris bureau could welcome around five hundred and fifty people. No,

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Speaker 8: they are four hundred fifty people and behind private doors

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Speaker 8: like management or saying obviously with the political turmoil in

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Speaker 8: the country, with the instability in regards to the taxes.

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Speaker 8: Maybe now it's not the good time to make all

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Speaker 8: these new people coming in Paris.

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Speaker 3: What's the official line on all of this, Claudia, What

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Speaker 3: is the government saying about these moves by banks, or

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Speaker 3: rather lack of moves by banks that are happening.

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Speaker 8: I mean, to be fair, like they've been quite realistic

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Speaker 8: about it. What they want to show more than anything

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Speaker 8: is like, look how many people actually came, you know,

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Speaker 8: the kind of saying like, so many people came this

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Speaker 8: past few years. So obviously we can't have that many

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Speaker 8: people coming every year. So they think that this plateau,

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Speaker 8: if I can say so, situation is rather normal than

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Speaker 8: worrying and for instances today always at your INEX conference

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Speaker 8: and the Finance Minister Eric Lambard was saying that, like

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Speaker 8: they kind of know that the environment is not the

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Speaker 8: best business friendly one at the moment, but the promise

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Speaker 8: to make more efforts to make either the labor law

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Speaker 8: like more comfortable for foreign players, so like they saying

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Speaker 8: that they know that they keep to they need to

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Speaker 8: keep continuing making efforts.

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Speaker 2: What does it mean for the financial professionals and their families.

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Speaker 2: We've moved to Paris. You've done lots of reporting on individuals.

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Speaker 8: I think the main question on that is that what

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Speaker 8: is the what we did the alternative because Paris fundamentals

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Speaker 8: are still there with very very highly skilled people. The

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Speaker 8: in frustrautures are in my article I talk about these schools,

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Speaker 8: like Paris were able to build many places and in

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Speaker 8: school for all the people who came and with the kids.

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Speaker 8: So like when you talk to individuals, they tell you

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Speaker 8: either like they're not moving and for other people it's

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Speaker 8: kind of the end of a cycle. Because for those

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Speaker 8: who came just after the Brexit referendum, so let's say

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Speaker 8: to fa than sixteen to th than seventeen, it would

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Speaker 8: be kind of the end of an era at the

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Speaker 8: end of this year because when they came, they were

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Speaker 8: able to benefit from a very general fiscal regime, which

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Speaker 8: basically means that almost fifty percent of their revenues wouldn't

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Speaker 8: be taken to account for taxes. And as you know,

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Speaker 8: taxes in France are quite high and it was only

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Speaker 8: a fatures regime. So obviously we can inspect many people

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Speaker 8: at the end of this year and maybe beginning of

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Speaker 8: next year to ask themselves like should I go back

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Speaker 8: to London, or maybe I can you know they can

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Speaker 8: try something in Millen.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 2: I'm Caroline Hepca.

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