1
00:00:02,440 --> 00:00:10,719
Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg

2
00:00:10,800 --> 00:00:13,840
Speaker 1: DABA Acurate podcast, available every morning on Apple, Spotify or

3
00:00:13,840 --> 00:00:16,560
Speaker 1: wherever you listen. It's Tuesday, the eighteenth of June. Here

4
00:00:16,600 --> 00:00:18,680
Speaker 1: in London. I'm Caroline Hepcare.

5
00:00:18,400 --> 00:00:21,800
Speaker 2: And I'm Jack Sitters. Coming up today, France's political turmoil

6
00:00:21,880 --> 00:00:25,680
Speaker 2: raises concerns over security policy across European capitals.

7
00:00:25,480 --> 00:00:29,680
Speaker 1: Labor tabs, HSBC and black Rock for policy solutions on

8
00:00:29,800 --> 00:00:31,000
Speaker 1: housing and energy.

9
00:00:31,360 --> 00:00:33,760
Speaker 2: And we have a special report on the many firms,

10
00:00:33,800 --> 00:00:37,320
Speaker 2: including Coca Cola, who pledged to quit Russia but still

11
00:00:37,320 --> 00:00:38,160
Speaker 2: have interest there.

12
00:00:38,520 --> 00:00:40,639
Speaker 1: Let's start with a roundup of our top stories.

13
00:00:41,120 --> 00:00:44,000
Speaker 2: The snap elections in France are casting doubt over plans

14
00:00:44,000 --> 00:00:47,120
Speaker 2: to ramp up European Union spending on defense and a

15
00:00:47,120 --> 00:00:50,680
Speaker 2: fresh push to support Ukraine. Immanuel Macron is a major

16
00:00:50,680 --> 00:00:54,160
Speaker 2: backer of plans to expand joint EU spending, but sources

17
00:00:54,160 --> 00:00:57,360
Speaker 2: of til Bloomberg there's concern his position may be undermined

18
00:00:57,600 --> 00:01:00,960
Speaker 2: if his party loses badly to the far right. Denmark's

19
00:01:00,960 --> 00:01:04,120
Speaker 2: Prime Minister Meta Fridrickson says it's time for unity.

20
00:01:04,760 --> 00:01:07,120
Speaker 3: I mean we are still in the middle of a

21
00:01:07,200 --> 00:01:09,720
Speaker 3: war that's going on in Europe. We have a lot

22
00:01:09,760 --> 00:01:13,440
Speaker 3: of challenges in front of us, especially on migration, climate change.

23
00:01:13,880 --> 00:01:16,640
Speaker 3: We still need a social balanced the European Union and

24
00:01:16,959 --> 00:01:20,280
Speaker 3: we need to have a stronger Europe in the future.

25
00:01:20,360 --> 00:01:23,160
Speaker 3: So with all these challenges and all the decisions in

26
00:01:23,160 --> 00:01:26,560
Speaker 3: front of us, I think it's important that we take

27
00:01:26,600 --> 00:01:27,120
Speaker 3: a decision.

28
00:01:28,160 --> 00:01:30,679
Speaker 2: Denmark's Meta Fridrickson was speaking ahead of a summit of

29
00:01:30,720 --> 00:01:33,680
Speaker 2: EU leaders next week, where talks will continue over who

30
00:01:33,760 --> 00:01:36,639
Speaker 2: will take the block's top jobs. The issue of defense

31
00:01:36,680 --> 00:01:39,440
Speaker 2: spending and the potential for joint borrowing to fund it

32
00:01:39,480 --> 00:01:41,440
Speaker 2: is also expected to be on the agenda.

33
00:01:42,120 --> 00:01:45,920
Speaker 1: Meanwhile, Christine Legarde says that her officials are watching market

34
00:01:45,959 --> 00:01:49,600
Speaker 1: developments amid turbulence in French bonds and two hundred and

35
00:01:49,600 --> 00:01:53,040
Speaker 1: fifty eight billion dollars being wiped from the market capitalization

36
00:01:53,160 --> 00:01:57,240
Speaker 1: of French stocks. The European Central Bank President's comments come

37
00:01:57,400 --> 00:02:00,320
Speaker 1: after chief economist Philip Blaine said that he is not

38
00:02:00,560 --> 00:02:05,160
Speaker 1: worried about French turbulence. Bloomberg's Carolyn Connal says that Marcus

39
00:02:05,320 --> 00:02:08,520
Speaker 1: may not react well though to fiscal policy from the

40
00:02:08,639 --> 00:02:10,960
Speaker 1: newly formed left wing Alliance.

41
00:02:11,520 --> 00:02:14,799
Speaker 4: If you look at the program of the far left,

42
00:02:14,840 --> 00:02:19,919
Speaker 4: who is part of this Popular Front alliance of the left.

43
00:02:20,200 --> 00:02:23,520
Speaker 4: It includes some proposals of chads lovering the retirement age

44
00:02:23,560 --> 00:02:30,000
Speaker 4: through sixty, such as bolishing fiscal walls and possibly, according

45
00:02:30,040 --> 00:02:33,920
Speaker 4: to Bunonome, at least an exit longer term down the

46
00:02:34,000 --> 00:02:37,120
Speaker 4: road from the Eurozone.

47
00:02:37,440 --> 00:02:40,959
Speaker 1: Our Paris correspondent to Carolyn Konnar speaking there. Bloomberg's poll

48
00:02:41,080 --> 00:02:44,120
Speaker 1: of polls shows Marine le Pen's far right National Rally

49
00:02:44,440 --> 00:02:46,560
Speaker 1: is in the lead less than two weeks away from

50
00:02:46,600 --> 00:02:48,320
Speaker 1: the first round of French voting.

51
00:02:49,240 --> 00:02:52,440
Speaker 2: Russian President Vladimir Putin will visit North Korea today for

52
00:02:52,480 --> 00:02:55,600
Speaker 2: the first time in twenty four years. The country is

53
00:02:55,600 --> 00:02:59,040
Speaker 2: suspected of sending missiles and millions of rounds of munitions

54
00:02:59,080 --> 00:03:01,639
Speaker 2: to help Moscow contain I knew it's offensive in Ukraine.

55
00:03:01,960 --> 00:03:05,320
Speaker 2: Melinda Harring, a senior fellow at the Atlantic Council's Eurasia Center,

56
00:03:05,720 --> 00:03:08,120
Speaker 2: says that while the trip is concerning, it's also a

57
00:03:08,120 --> 00:03:10,920
Speaker 2: reminder of Putin's isolation on the world stage.

58
00:03:11,160 --> 00:03:13,200
Speaker 5: One thing that I would keep by eye on is

59
00:03:13,360 --> 00:03:15,560
Speaker 5: are they going to be cutting more deals to make

60
00:03:15,600 --> 00:03:17,440
Speaker 5: sure that the Russians have enough shells?

61
00:03:17,680 --> 00:03:20,960
Speaker 6: Two? I think it shows how isolated Vladimir Putin is.

62
00:03:21,160 --> 00:03:22,920
Speaker 7: He doesn't have very many friends.

63
00:03:23,160 --> 00:03:24,240
Speaker 6: He's got North.

64
00:03:24,040 --> 00:03:26,840
Speaker 5: Korea and he's got China and a few other people.

65
00:03:27,680 --> 00:03:30,239
Speaker 2: Melinda Harring says the fresh delivery of billions of dollars

66
00:03:30,240 --> 00:03:32,919
Speaker 2: in arms from the US and European allies will need

67
00:03:32,960 --> 00:03:36,520
Speaker 2: to be bolstered by further support. Next year, Vladimir Putin's

68
00:03:36,560 --> 00:03:38,320
Speaker 2: visit to North Korea will be followed by a trip

69
00:03:38,360 --> 00:03:41,520
Speaker 2: to Vietnam, where energy policy is expected to be in focus.

70
00:03:42,440 --> 00:03:46,200
Speaker 1: In the UK election campaign, Labour is turning to banks

71
00:03:46,240 --> 00:03:50,400
Speaker 1: and asset managers for help in finalizing its infrastructure proposals.

72
00:03:50,400 --> 00:03:53,160
Speaker 1: Bloomberg has learned that the party's club of senior city

73
00:03:53,200 --> 00:03:56,240
Speaker 1: executives has been asked to weigh in on its housing

74
00:03:56,280 --> 00:03:59,880
Speaker 1: and energy policies. Bloomberg's James Walcock has more.

75
00:04:00,440 --> 00:04:03,320
Speaker 7: Any future government has a dilemma. If it wants to

76
00:04:03,400 --> 00:04:07,600
Speaker 7: invest to create growth, it can't risk overstretching the bond market.

77
00:04:07,680 --> 00:04:10,600
Speaker 7: After the Liz trust Era for Labour, shadow of Chancellor

78
00:04:10,560 --> 00:04:14,560
Speaker 7: of Rachel reeves the answer is private sector investment. She

79
00:04:14,640 --> 00:04:17,039
Speaker 7: met with her council of top executives in the city

80
00:04:17,120 --> 00:04:20,360
Speaker 7: yesterday and Bloomberg has learned they're being asked to help

81
00:04:20,480 --> 00:04:25,280
Speaker 7: finalize detailed proposals so reeves can start projects immediately if

82
00:04:25,279 --> 00:04:27,839
Speaker 7: you were to win power in the election. But the

83
00:04:27,920 --> 00:04:31,320
Speaker 7: open question is if simply changing the government and promising

84
00:04:31,400 --> 00:04:36,200
Speaker 7: stability is enough to restore Britain's sluggish private investment in London.

85
00:04:36,320 --> 00:04:37,960
Speaker 7: James Wlcock Bloomberg Radio.

86
00:04:39,120 --> 00:04:42,520
Speaker 2: The Institute for Fiscal Studies says Reform UK's spending plans

87
00:04:42,760 --> 00:04:45,880
Speaker 2: do not add up. Nigel Farag's parties as it plans

88
00:04:45,880 --> 00:04:48,920
Speaker 2: to has said its plans include ninety billion of tax

89
00:04:48,960 --> 00:04:52,880
Speaker 2: cuts and fifty billion of spending increases. The IFS, an

90
00:04:52,880 --> 00:04:55,960
Speaker 2: independent think tank which has costed all the party's manifestos,

91
00:04:56,160 --> 00:05:00,360
Speaker 2: has called Faraj's policies problematic, pointing to large, unf funded

92
00:05:00,400 --> 00:05:04,719
Speaker 2: tax cuts and impossible spending plans. Reform UK's leader, Nigel

93
00:05:04,720 --> 00:05:07,200
Speaker 2: Farraj says the people shouldn't see it as a blueprint

94
00:05:07,240 --> 00:05:07,720
Speaker 2: for government.

95
00:05:08,200 --> 00:05:10,440
Speaker 8: We are not pretending that we are going to win

96
00:05:10,720 --> 00:05:14,560
Speaker 8: this general election. We are a very new political party,

97
00:05:14,920 --> 00:05:17,240
Speaker 8: so this is not something with which we're going to

98
00:05:17,240 --> 00:05:21,039
Speaker 8: govern the country. That's not possible. Although this election is

99
00:05:21,520 --> 00:05:26,080
Speaker 8: the first important step on the road to twenty twenty nine.

100
00:05:26,200 --> 00:05:29,440
Speaker 2: Nigel Farag speaking at the Manifesto launch yesterday, the right

101
00:05:29,480 --> 00:05:32,600
Speaker 2: wing party has overtaken the Conservatives in some recent polls.

102
00:05:33,400 --> 00:05:36,800
Speaker 1: And finally, in sports news, the Boston Celtics beat the

103
00:05:36,920 --> 00:05:39,560
Speaker 1: Dallas Mavericks one hundred and six to eighty eight on

104
00:05:39,640 --> 00:05:44,520
Speaker 1: Monday night to claim a record eighteenth National Basketball Association title.

105
00:05:44,800 --> 00:05:47,640
Speaker 1: The four to one final series win gives the team

106
00:05:47,720 --> 00:05:51,279
Speaker 1: one more title than their old rivals, the Los Angeles Lakers.

107
00:05:51,480 --> 00:05:54,159
Speaker 1: Jalen Brown, who's in the first year of a five

108
00:05:54,279 --> 00:05:57,560
Speaker 1: year contract where two hundred and eighty six million dollars,

109
00:05:57,880 --> 00:06:01,479
Speaker 1: was named the most valuable player of the NBA Finals. Now,

110
00:06:01,520 --> 00:06:04,400
Speaker 1: in a moment, we are going to bring you more

111
00:06:04,440 --> 00:06:07,920
Speaker 1: about the fears among EU leaders about the political tumil

112
00:06:08,040 --> 00:06:10,360
Speaker 1: in France, the story that you were talking about this morning, Jack,

113
00:06:10,440 --> 00:06:12,839
Speaker 1: and also dig into our investigation into why so many

114
00:06:12,920 --> 00:06:18,280
Speaker 1: brands that pledge to quit Russia are actually still available there.

115
00:06:18,360 --> 00:06:20,800
Speaker 1: But there was another story that caught my eye this morning,

116
00:06:21,600 --> 00:06:24,520
Speaker 1: which is wild. It's about the difficulty of finding something

117
00:06:24,640 --> 00:06:27,240
Speaker 1: real on the internet. Our colleague Amanda Mull has been

118
00:06:27,279 --> 00:06:30,680
Speaker 1: writing about this. It is in the context of a

119
00:06:30,839 --> 00:06:34,320
Speaker 1: skincare product that she bought online. It's one that she

120
00:06:34,400 --> 00:06:38,520
Speaker 1: has been using for years, but now she's not sure

121
00:06:38,560 --> 00:06:41,440
Speaker 1: if it's real. Have you read this story this morning.

122
00:06:41,279 --> 00:06:43,919
Speaker 2: Jack, Yes, I have, and I mean I had to

123
00:06:43,920 --> 00:06:47,039
Speaker 2: say shocking as the snail slime aspect of it was,

124
00:06:47,320 --> 00:06:50,320
Speaker 2: or rather maybe come for the snail stem slime, stay

125
00:06:50,400 --> 00:06:54,120
Speaker 2: for the bizarre investigations that people do to try and

126
00:06:54,200 --> 00:06:57,040
Speaker 2: root out these fake products, including the platforms that are

127
00:06:57,040 --> 00:06:57,800
Speaker 2: trying to stamp them out.

128
00:06:57,880 --> 00:07:00,640
Speaker 1: Yeah. Absolutely, so this is a real product. It is

129
00:07:01,400 --> 00:07:04,039
Speaker 1: a face cream of some kind. But basically it went

130
00:07:04,200 --> 00:07:07,120
Speaker 1: viral and so this kind of niche item from South

131
00:07:07,200 --> 00:07:11,520
Speaker 1: Korea that Amanda likes to buy then sort of exploded.

132
00:07:11,600 --> 00:07:15,000
Speaker 1: There were lots of people who were then flooding the

133
00:07:15,040 --> 00:07:17,600
Speaker 1: market with fakes. Anyway, as you say, she then does

134
00:07:17,680 --> 00:07:21,840
Speaker 1: a deep dive into TikTok, into Amazon, and she reached

135
00:07:21,840 --> 00:07:23,720
Speaker 1: out to them and got their reaction in terms of

136
00:07:23,720 --> 00:07:27,040
Speaker 1: how quickly they're trying to stamp out on these sellers

137
00:07:27,280 --> 00:07:32,840
Speaker 1: that are marketing fake products essentially, but the difficulty really

138
00:07:32,880 --> 00:07:35,720
Speaker 1: of removing them online and what it all means. She

139
00:07:35,760 --> 00:07:39,160
Speaker 1: basically talks about online shopping and essentially being a feeding

140
00:07:39,200 --> 00:07:43,680
Speaker 1: frenzy where everyone, whether they be scammer or sleuth, is

141
00:07:43,760 --> 00:07:46,920
Speaker 1: rewarded with something. But it's a really nice piece. Have

142
00:07:46,920 --> 00:07:48,760
Speaker 1: a look at it on the Blueberg termial this morning

143
00:07:48,760 --> 00:07:53,400
Speaker 1: from Amanda Mule. Now, let's get more then on the

144
00:07:53,480 --> 00:07:55,760
Speaker 1: issues around the political turmoil in France or what it

145
00:07:55,800 --> 00:07:58,960
Speaker 1: could mean in terms of the EU's efforts to beef

146
00:07:59,080 --> 00:08:02,760
Speaker 1: up its defense is and to further support Ukraine. This

147
00:08:02,880 --> 00:08:05,760
Speaker 1: is European leaders have failed to agree on who will

148
00:08:05,760 --> 00:08:09,440
Speaker 1: now take the European's top jobs, the European Union's top

149
00:08:09,520 --> 00:08:13,560
Speaker 1: jobs after recent elections. At the first informal dinner to

150
00:08:13,600 --> 00:08:16,840
Speaker 1: discuss the whole issue, Johnnius now is our EMEA News

151
00:08:16,920 --> 00:08:20,640
Speaker 1: director Roslyn Matheson to explain, Good morning, ros So. In

152
00:08:20,760 --> 00:08:24,200
Speaker 1: terms of what the EU leaders are worried about when

153
00:08:24,200 --> 00:08:26,960
Speaker 1: it comes to the French election, there was he concerned

154
00:08:27,000 --> 00:08:28,680
Speaker 1: about the position of Emmanuel Macon.

155
00:08:29,360 --> 00:08:31,600
Speaker 5: Well, they are, they're worried about this on a number

156
00:08:31,600 --> 00:08:34,880
Speaker 5: of levels, and they're worried about France itself for beginners,

157
00:08:34,960 --> 00:08:38,000
Speaker 5: and what happens in this election, What's going to be

158
00:08:38,080 --> 00:08:40,720
Speaker 5: the position of the parliament in France after this? Where

159
00:08:40,720 --> 00:08:43,440
Speaker 5: does this leave Emmanuel Macron in the run up, you know,

160
00:08:43,480 --> 00:08:46,400
Speaker 5: to his term finishing in twenty twenty seven. So they're

161
00:08:46,400 --> 00:08:48,720
Speaker 5: worried about France on its own, but they're also worried

162
00:08:48,760 --> 00:08:51,960
Speaker 5: about what this election might mean for Europe as a whole, because,

163
00:08:52,000 --> 00:08:55,040
Speaker 5: of course, Emmanuel Macron has been the champion really the

164
00:08:55,280 --> 00:08:58,359
Speaker 5: sort of the European project in all of this, advocating

165
00:08:58,520 --> 00:09:02,120
Speaker 5: for renewed Europe, taking care of its own defense, standing

166
00:09:02,520 --> 00:09:05,440
Speaker 5: on its own, taking a strong position against Russia, and

167
00:09:05,480 --> 00:09:08,520
Speaker 5: a strong support for Ukraine. So the question is, you

168
00:09:08,520 --> 00:09:12,079
Speaker 5: know that if his position changes our home in terms

169
00:09:12,080 --> 00:09:15,280
Speaker 5: of his ability to enact policy, if he's seen as

170
00:09:15,360 --> 00:09:19,080
Speaker 5: weakened because of who's in Parliament for the rest of

171
00:09:19,120 --> 00:09:21,680
Speaker 5: his term, what does that mean for his ability to

172
00:09:21,800 --> 00:09:25,520
Speaker 5: kind of enact that agenda across Europe. We've got a

173
00:09:25,559 --> 00:09:28,920
Speaker 5: lot of talk about collective defense, big spending on defense.

174
00:09:29,440 --> 00:09:33,160
Speaker 5: We're talking about the position in future of Ukraine. We're

175
00:09:33,200 --> 00:09:36,600
Speaker 5: also talking about policies around things like migration, and we're

176
00:09:36,600 --> 00:09:40,280
Speaker 5: talking about the fiscal health of Europe because France and Germany,

177
00:09:40,360 --> 00:09:43,959
Speaker 5: of course the significant economies in Europe. And if there

178
00:09:43,960 --> 00:09:47,920
Speaker 5: are changes in France and a fiscal perspective, what does

179
00:09:47,920 --> 00:09:51,200
Speaker 5: that mean for the overall economic health of Europe. So

180
00:09:51,240 --> 00:09:54,079
Speaker 5: there's a number of concerns there, ranging from kind of

181
00:09:54,120 --> 00:09:56,640
Speaker 5: the geo strategic but also very much of the nuts

182
00:09:56,679 --> 00:09:58,560
Speaker 5: and bolts of the EU, which is finance.

183
00:10:00,000 --> 00:10:01,680
Speaker 2: Can you I mentioned there that mat Gron is one

184
00:10:01,720 --> 00:10:04,199
Speaker 2: of the biggest supporters of Ukraine. What is the fear

185
00:10:04,200 --> 00:10:06,160
Speaker 2: for that position if the far right were to win

186
00:10:06,200 --> 00:10:07,719
Speaker 2: control of the Parliament.

187
00:10:07,600 --> 00:10:09,560
Speaker 5: Well, certainly you could see the concern that there's going

188
00:10:09,600 --> 00:10:13,680
Speaker 5: to be diminishing support for Ukraine unless of that unified

189
00:10:13,720 --> 00:10:17,160
Speaker 5: position on Russia. And that comes against the backdrop, of course,

190
00:10:17,200 --> 00:10:20,600
Speaker 5: of a broader concern about support for Ukraine. We've got

191
00:10:20,600 --> 00:10:23,760
Speaker 5: the US going into an election, We've got potentially the

192
00:10:24,480 --> 00:10:27,160
Speaker 5: renewal of Donald Trump in the White House, and he's

193
00:10:27,200 --> 00:10:29,120
Speaker 5: made very clear he's not going to be a strong

194
00:10:29,120 --> 00:10:32,720
Speaker 5: supporter of Ukraine in that eventuality. So you've got this

195
00:10:32,840 --> 00:10:35,480
Speaker 5: question is Europe already going to have to step up

196
00:10:35,480 --> 00:10:38,600
Speaker 5: and do more on its own? And if you again

197
00:10:38,679 --> 00:10:41,280
Speaker 5: have a diminished France in all of that, do you

198
00:10:41,320 --> 00:10:43,880
Speaker 5: see some of those cracks start to come into Europe

199
00:10:44,160 --> 00:10:46,679
Speaker 5: as well? So you do have some countries like Hungary

200
00:10:46,720 --> 00:10:51,000
Speaker 5: continuing to question strong support for Ukraine. We've just got

201
00:10:51,040 --> 00:10:53,160
Speaker 5: over the line on this idea of lending Ukraine a

202
00:10:53,240 --> 00:10:56,319
Speaker 5: lot of money backed against Russian assets, but that took

203
00:10:56,480 --> 00:10:59,920
Speaker 5: months and months and months of careful diplomacy to get done.

204
00:11:00,240 --> 00:11:02,080
Speaker 5: And so in a climate where things are a lot

205
00:11:02,120 --> 00:11:06,040
Speaker 5: trickier for mcron at home, do you have struggles about

206
00:11:06,080 --> 00:11:09,800
Speaker 5: these packages? Again, of overall EU aid it military aid

207
00:11:09,880 --> 00:11:10,760
Speaker 5: or financial aid.

208
00:11:12,160 --> 00:11:15,840
Speaker 1: The other issue then is also who takes over in

209
00:11:15,960 --> 00:11:18,560
Speaker 1: the top jobs in the EU, So this would be

210
00:11:18,640 --> 00:11:21,160
Speaker 1: leading the Commission, the Council of the Parliament and also

211
00:11:21,200 --> 00:11:25,280
Speaker 1: the Foreign Service and there isn't any agreement on that yet.

212
00:11:25,400 --> 00:11:28,360
Speaker 1: Obviously it does usually take time. But what's the progress

213
00:11:28,440 --> 00:11:28,840
Speaker 1: so far.

214
00:11:29,360 --> 00:11:31,280
Speaker 5: Well, it's interesting because there was a sort of sense

215
00:11:31,320 --> 00:11:34,320
Speaker 5: that this would actually breeze through yesterday as you were

216
00:11:34,360 --> 00:11:38,880
Speaker 5: saying that Ourgela vonderline would get the nod and obviously

217
00:11:39,080 --> 00:11:42,440
Speaker 5: the Estonian leader Callas would get the nod as the

218
00:11:42,480 --> 00:11:44,600
Speaker 5: EU envoy, and there was sort of a trio and

219
00:11:44,640 --> 00:11:47,160
Speaker 5: that was just going to sail through yesterday. That didn't happen.

220
00:11:47,880 --> 00:11:51,520
Speaker 5: It's still expected to get done, possibly the leaders meeting

221
00:11:52,120 --> 00:11:54,920
Speaker 5: later this month, so only a week or two off,

222
00:11:55,559 --> 00:11:58,120
Speaker 5: but there is that sense of it is entirely earned on?

223
00:11:58,400 --> 00:11:59,600
Speaker 5: Is it entirely earned on?

224
00:12:00,120 --> 00:12:01,240
Speaker 7: And the question there is.

225
00:12:01,280 --> 00:12:03,520
Speaker 5: Right now, you just can't afford to have this sense

226
00:12:03,960 --> 00:12:08,520
Speaker 5: of any kind of gridlock or disagreement again within these countries.

227
00:12:08,679 --> 00:12:11,480
Speaker 5: I mean, Emmanuel Kranz said that he believes that they'll

228
00:12:11,520 --> 00:12:14,320
Speaker 5: get there, and he of course was famously behind the

229
00:12:14,320 --> 00:12:17,640
Speaker 5: scenes maneuvering in the previous administration that got Urschel a

230
00:12:17,679 --> 00:12:21,080
Speaker 5: vonderline into her position in the first place. But it

231
00:12:21,320 --> 00:12:23,960
Speaker 5: just does come at that slight sense of an ease

232
00:12:24,120 --> 00:12:26,880
Speaker 5: around the EU as a whole and the need to

233
00:12:26,960 --> 00:12:29,240
Speaker 5: just show that they can crack on and get stuff done.

234
00:12:30,000 --> 00:12:32,760
Speaker 2: Thanks so much for coming on, ross EMA News director

235
00:12:32,840 --> 00:12:33,880
Speaker 2: Roslyn Ratherson there.

236
00:12:35,040 --> 00:12:37,640
Speaker 1: Now, let's talk a bit more about Russia. We touched

237
00:12:37,679 --> 00:12:40,319
Speaker 1: on it. Coca Cola was one of the first companies

238
00:12:40,320 --> 00:12:42,400
Speaker 1: to pledge that it would quit Russia when the country

239
00:12:42,440 --> 00:12:45,320
Speaker 1: invaded Ukraine. But more than two years on, you can

240
00:12:45,360 --> 00:12:48,920
Speaker 1: still find its drinks easily in Russian supermarkets. Our consumer

241
00:12:49,000 --> 00:12:53,200
Speaker 1: reporter Dasha Afanasieva joins us now for more. Dasha, it's

242
00:12:53,240 --> 00:12:57,160
Speaker 1: a great investigation into the brands that promise to quit Russia.

243
00:12:57,360 --> 00:12:59,840
Speaker 1: Talk us through how a coke can still make its

244
00:12:59,840 --> 00:13:03,280
Speaker 1: way to Russian shells.

245
00:13:03,559 --> 00:13:06,320
Speaker 9: Winning so the actual coke brand that you can still

246
00:13:06,320 --> 00:13:10,760
Speaker 9: get on Russian shells gets through third party countries. So

247
00:13:11,000 --> 00:13:15,600
Speaker 9: after the war and after the Western backlash and the

248
00:13:15,640 --> 00:13:20,120
Speaker 9: response to the war, Russia introduced legislation which allowed importers

249
00:13:20,360 --> 00:13:25,040
Speaker 9: to bring in products without the trademark holder's consent, which

250
00:13:25,080 --> 00:13:28,600
Speaker 9: meant that Coke and Pepsi all make their way onto

251
00:13:29,040 --> 00:13:33,200
Speaker 9: the onto Russian shells. But beyond that, you know, these

252
00:13:33,200 --> 00:13:38,600
Speaker 9: companies pledged to stop producing their international brands. So for Coke,

253
00:13:39,760 --> 00:13:44,080
Speaker 9: this was a bottler called HBC that was producing that

254
00:13:44,240 --> 00:13:48,079
Speaker 9: Coke owns a fifth of that was producing coke brands

255
00:13:48,080 --> 00:13:49,200
Speaker 9: inside Russia.

256
00:13:49,320 --> 00:13:50,559
Speaker 6: It stopped doing.

257
00:13:50,280 --> 00:13:54,079
Speaker 9: That, but it has started making a domestic variant of

258
00:13:54,200 --> 00:13:56,719
Speaker 9: coke called Coke Dobbery, which is actually one of the

259
00:13:56,800 --> 00:14:00,000
Speaker 9: biggest coke brands in Russia, so it still retains significant

260
00:14:00,120 --> 00:14:04,600
Speaker 9: market share. Similarly, Pepsi has stopped making international brands, but

261
00:14:04,640 --> 00:14:08,480
Speaker 9: it's replaced those, or at least partially replaced those, with

262
00:14:08,640 --> 00:14:15,240
Speaker 9: domestic brands that essentially are very similar products. So these

263
00:14:15,280 --> 00:14:18,400
Speaker 9: big statements came out that made it seem like Pepsi

264
00:14:18,559 --> 00:14:21,640
Speaker 9: and Coke were winding down their business in Russia and

265
00:14:21,680 --> 00:14:24,440
Speaker 9: that just wasn't the case. And on top of that,

266
00:14:24,520 --> 00:14:27,920
Speaker 9: Pepsi said, you know, we're going to continue making essential food,

267
00:14:28,440 --> 00:14:32,400
Speaker 9: which includes your dairy and baby food, which you could argue,

268
00:14:32,520 --> 00:14:36,000
Speaker 9: I guess it's essential. But they're also silf producing snacks

269
00:14:36,280 --> 00:14:39,480
Speaker 9: and or selling those in Russia and that business is

270
00:14:39,560 --> 00:14:40,360
Speaker 9: rather large.

271
00:14:41,400 --> 00:14:44,120
Speaker 2: So Dasha, what does this say about the wider sanctions

272
00:14:44,120 --> 00:14:45,840
Speaker 2: picture and if it's actually working?

273
00:14:46,160 --> 00:14:49,360
Speaker 9: Yeah, I mean consumer goods are not under sanctions. I

274
00:14:49,400 --> 00:14:54,600
Speaker 9: think in some ways companies have responded quickly after the

275
00:14:54,640 --> 00:14:59,120
Speaker 9: war began in partners solidarity with Ukraine, because if you're

276
00:14:59,160 --> 00:15:01,080
Speaker 9: sitting in the West, like the right thing to do,

277
00:15:01,440 --> 00:15:05,920
Speaker 9: and also in anticipation of conforming to sanctions and also

278
00:15:06,000 --> 00:15:08,760
Speaker 9: making checks and just how much harder it was going

279
00:15:08,840 --> 00:15:12,600
Speaker 9: to be to be compliant with banking sanctions and things

280
00:15:12,680 --> 00:15:16,320
Speaker 9: like that and still operating in Russia. But you definitely

281
00:15:16,360 --> 00:15:19,960
Speaker 9: can and you definitely can still import export. You know,

282
00:15:20,040 --> 00:15:24,600
Speaker 9: there were the most recent sanctions were the Moscow Exchange,

283
00:15:24,680 --> 00:15:28,960
Speaker 9: which I think make currency transactions more difficult, but none

284
00:15:28,960 --> 00:15:31,920
Speaker 9: of it is impossible. It might just be costly because

285
00:15:31,920 --> 00:15:34,920
Speaker 9: you're having to make checks, so I don't think that

286
00:15:35,240 --> 00:15:42,320
Speaker 9: Washington's intention was necessarily that multinationals lose their business in

287
00:15:42,400 --> 00:15:44,040
Speaker 9: Russia or walk away from it.

288
00:15:45,760 --> 00:15:48,520
Speaker 6: This is Bloomberg Daybreak Europe, your morning brief on the

289
00:15:48,600 --> 00:15:51,640
Speaker 6: stories making news from London to Wall Street and beyond.

290
00:15:51,920 --> 00:15:55,880
Speaker 1: Look for us on your podcast speed every morning on Apple, Spotify,

291
00:15:56,000 --> 00:15:57,960
Speaker 1: and anywhere else you get your podcasts.

292
00:15:57,960 --> 00:16:01,000
Speaker 6: You can also listen live each morning on London Dab Radio,

293
00:16:01,040 --> 00:16:03,760
Speaker 6: the Bloomberg Business app, and Bloomberg dot Com.

294
00:16:03,760 --> 00:16:06,560
Speaker 1: Our flagship New York station is also available on your

295
00:16:06,560 --> 00:16:11,280
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

296
00:16:11,520 --> 00:16:14,200
Speaker 6: I'm Caroline Hepka and I'm Stephen Carol. Join us again

297
00:16:14,240 --> 00:16:16,800
Speaker 6: tomorrow morning for all the news you need to start

298
00:16:16,840 --> 00:16:23,440
Speaker 6: your day right here on Bloomberg Daybreak Europe