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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the.

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Speaker 2: Blueberg Daybak podcast. Good morning, It's Friday, the twenty fourth

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Speaker 2: of October. I'm Caroline Hepga here in London. Coming up today.

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Speaker 2: President Trump terminates trade talks with Canada via social media

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Speaker 2: after a political advert uses Ronald Reagan's anti tariff argument.

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Speaker 2: China doubles down on self reliance in its five year

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Speaker 2: plan ahead of a face to face meeting between g

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Speaker 2: and Trump. Plus the Labor government suffers a catastrophic by

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Speaker 2: election defeat in Wales. Bloomberg's Michelle Hussein speaks to the

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Speaker 2: leader they fear, Nigel Farage. Let's start with a roundup

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Speaker 2: of our top stories. US President Donald Trump says that

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Speaker 2: he is immediately ending all trade negotiations with Canada in

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Speaker 2: the latest tariff twist. In a post on social media,

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Speaker 2: the US leader said that a Canadian TV advert campaigning

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Speaker 2: against his tariff policy sparked the moon. The advert echoed

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Speaker 2: President Ronald Reagan's words from a speech that he made

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Speaker 2: in the nineteen eighties, saying that over the long run,

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Speaker 2: trade barriers hurt every American worker and consumer. Now it's

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Speaker 2: the second time this year that Trump has terminated trade

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Speaker 2: talks with Canada. Canada's economy has been badly damaged by

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Speaker 2: the trade war, as about three quarters of its exported

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Speaker 2: goods went to the US last year. US President Trump

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Speaker 2: says that he is aiming, though, for a quick win

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Speaker 2: in talks with China's President Shijingping, which are now scheduled

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Speaker 2: for next Thursday. The US leader told reporters that the

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Speaker 2: two sides will discuss trade, Ukraine, and nuclear weapons.

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Speaker 3: Actually, on November first, the terrafuon China goes to one

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Speaker 3: hundred and fifty seven percent, which is record setting territory,

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Speaker 3: and we don't want that because it's not sustainable for them.

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Speaker 3: They can't sustain that. We don't want them to have

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Speaker 3: to go through that, so a meeting with President she.

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Speaker 2: Both Trump's White House and Beijing have launched increasingly hostile

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Speaker 2: trade policies in recent weeks. The tensions are causing economic pain,

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Speaker 2: hitting US prices and China's export markets. China needs to

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Speaker 2: do something major for the economy, according to a Central

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Speaker 2: Bank advisor. Huang Yiping, a member of China's Monetary Policy Committee,

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Speaker 2: is calling for aggressive fiscal easing and stabilization.

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Speaker 4: What we really need is for the government, including the

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Speaker 4: central bank, to do something major to repair the balance

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Speaker 4: shud of household, of the enterprises, of the local governments

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Speaker 4: and maybe also of the financial institutions. They need to

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Speaker 4: be recapitalized in order to expand their landing businesses.

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Speaker 2: The pboc's Wang Yeping speaking there as economic indicators are

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Speaker 2: showing a muted level of confidence despite the trade war

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Speaker 2: seen booming experts in the third quarter, and its new

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Speaker 2: economic five year plan is doubling down on becoming technologically

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Speaker 2: independent from the US. The EU is putting off until

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Speaker 2: December a decision on whether to tap frozen Russian Central

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Speaker 2: Bank assets to aid Ukraineient European Commission president of Slavonderlion

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Speaker 2: says that she will come back with more clarity.

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Speaker 5: We had a good discussion on the reparations lawn to

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Speaker 5: be financed with immobilized Russian assets, and it allowed us

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Speaker 5: to identify points we still need to clarify, and then

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Speaker 5: indeed we will come back with the different options that

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Speaker 5: we will develop.

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Speaker 2: A Sylvandlion. We was speaking after the EU's plan stooled

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Speaker 2: when Belgium pushed for guarantees that it wouldn't be held

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Speaker 2: liable for any seized money. Ukraine's European allies see tapping

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Speaker 2: Russian assets is the only viable way for them to

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Speaker 2: continue funding Kiev's fight against Moscow's invasion. Now, Binance founder

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Speaker 2: Chang Peng Xao has been pardoned by President Trump for

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Speaker 2: twenty seventeen money laundering measure violations. According to Trump, the

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Speaker 2: crypto entrepreneur was persecuted by the Biden administration. White House

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Speaker 2: spokesperson Caroline Levitt says the decision was considered carefully.

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Speaker 6: I would respond and say the President is exercising his

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Speaker 6: constitutional authority to grant clemency requests and the President in

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Speaker 6: the White House have a very thorough examination of every

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Speaker 6: part in request that comes to the President's.

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Speaker 2: Desk, Caroline Levitt, speaking there. Binance had held one of

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Speaker 2: the President's family ventures with the launch of its staple

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Speaker 2: coin to amuse him. In the UK, the Labour Party

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Speaker 2: has lost to and historic by election in the Welsh

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Speaker 2: strongfold hold of care Philly, losing the seats to the

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Speaker 2: Nationalist Party plied Cumriy. Labour picked up just eleven percent

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Speaker 2: of the vote in the party's first defeat in the

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Speaker 2: area for more than one hundred years applied comries Lindsay Whittle,

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Speaker 2: who won the seat with forty seven percent of the vote,

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Speaker 2: had this message.

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Speaker 7: Listen no Cardiff and listen Westminster. This is cud Philly

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Speaker 7: and Wills telling you we want a better deal for

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Speaker 7: every corner of Wales. The Big parties leader fit up

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Speaker 7: and take notice.

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Speaker 2: The result highlights a threat to labor from other parties

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Speaker 2: in Wales. Ahead of elections in the country next year,

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Speaker 2: Nigel Farage's poll topping Reform UK failed to take the seat,

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Speaker 2: but won a significant gain, coming in second with thirty

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Speaker 2: six percent of the vote, and in an interview with

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Speaker 2: Bloomberg's Michelle has saying, Nigel Farage revealed what his government

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Speaker 2: could look like if Reform wins the next general election.

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Speaker 2: The populist leader signaled that he could look at the

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Speaker 2: independence of the UK Central Bank. He suggested that he

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Speaker 2: would replace the Bank of England governor Andrew Bailey.

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Speaker 8: Well is it nice enough, bloke?

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Speaker 1: But would he keep his job?

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Speaker 8: If you were pros he's had a good run, we

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Speaker 8: might find someone new. Really, he's had a good run.

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Speaker 1: So you are signaling you'd be exackly.

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Speaker 8: I'm just saying the Bank of England, the British Government,

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Speaker 8: the regulator, whatever shape that takes, they've all got to

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Speaker 8: understand that the world is changing, has changed very very

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Speaker 8: rapidly now.

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Speaker 2: Jean Vauge's view on the Governor of the Bank of

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Speaker 2: England's tenure is for now academic, given that Bailey is

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Speaker 2: serving an eight year term. The next UK general election

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Speaker 2: isn't until twenty twenty nine. However, his comments are a

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Speaker 2: clear indication that he could emulate his ally US President

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Speaker 2: Donald Trump in applying pressure to the Central Bank's independence.

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Speaker 2: And in corporate news, Intel shares have swored following an

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Speaker 2: upbeat forecast. The chipmaker announced a return to profitability and

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Speaker 2: predicted roughly thirteen point three billion dollars in fourth quarter sales.

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Speaker 2: Its latest results, Jay Goldberg, seeing it analysts in Semiconductors

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Speaker 2: and Electronics from Seaport Research Partners, says that the numbers

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Speaker 2: are positive.

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Speaker 9: It's an encouraging step forward for the company. They've been

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Speaker 9: through some rough times and I think the driver of

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Speaker 9: this quarter's results are their new products coming on stream

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Speaker 9: using their eighteen eight their new manufacturing process, as well

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Speaker 9: as some help from TSMC SO A bunch of new

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Speaker 9: products starting to ramp into production and volume. I think

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Speaker 9: that's helping a lot, and I'm most encouraged by sort

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Speaker 9: of the gross margin outlook for next quarter.

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Speaker 2: So that was analyst j Goldberg speaking. Their Intel shares

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Speaker 2: gained about eight percent in late trading, so investors did

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Speaker 2: seem to agree. So those are our top stories for

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Speaker 2: you today. Let's have a look at markets. MSCIAS Pacific

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Speaker 2: index is up half of one percent this morning, Technology

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Speaker 2: shares driving the gains. Their sk Highnex up as much

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Speaker 2: as six point nine percent, and Intel, of course did

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Speaker 2: help to lift the mood overnight. US European ecty futures

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Speaker 2: are also gaining. European stocks ended up four tenths of

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Speaker 2: one percent yesterday, powered by well so many earnings, the

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Speaker 2: Canadian dollar weakening, ten year treasury gilds climbing five basis

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Speaker 2: points over the past three days. We're just trading below

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Speaker 2: four percent now. So those are the markets. In a moment,

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Speaker 2: we're going to bring you more with Michellehssein and her

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Speaker 2: interview with the Reform UK's leader Nigel Farage, and we'll

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Speaker 2: talk about China. Now confirmed that shijingping Donald Trump meeting

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Speaker 2: that's going to take place next Thursday, very interesting, got

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Speaker 2: to get into the trade discussions. But there's as ever,

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Speaker 2: that has caught my eye, that has got my attention

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Speaker 2: today that I thought i'd tell you a bit about

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Speaker 2: chat gpt wants to be your personal stylist, help you

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Speaker 2: shop online, and of course make open ai a bit

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Speaker 2: more money. The thing is the answers that it comes

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Speaker 2: up with right now on comparing prices and websites and

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Speaker 2: so on. According to Bloomberg's Dave Lee, our opinion columnists

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Speaker 2: are not very good. They do want to have a

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Speaker 2: meaningful slice of the e commerce market. But apparently a

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Speaker 2: couple of academics have found quite a big snag that

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Speaker 2: people who get to e commerce sites to buy things

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Speaker 2: via chat gpt are less likely to buy something than

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Speaker 2: if they arrive there via another route. But apparently chat

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Speaker 2: gpt is learning very fast. Of course, they've got to

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Speaker 2: deal with Etsy, Shopify, and Walmart now. And we know

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Speaker 2: that open ai is looking to make more money. Recently

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Speaker 2: we reported the company exploring how to let adult chat

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Speaker 2: GPT users get mature content and erotica. So look, it

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Speaker 2: seems to me that everything on the web boils down

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Speaker 2: to sex and shopping in the end, but I'll put

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Speaker 2: a link to it to Dave Lee's story in our

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Speaker 2: show notes for you and you can come to your

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Speaker 2: own conclusions. Right The high stakes meeting between President Trump

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Speaker 2: and President g has been confirmed for next Thursday, the

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Speaker 2: first face to face meeting since Trump was reelected, and

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Speaker 2: it comes after weeks of escalating threats and trade retaliation.

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Speaker 2: Joining US now is Jenny Marsh, who leads Bloomberg's team

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Speaker 2: covering Chinese economy and government. Good morning, Great to speak

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Speaker 2: to you, Jenny. How do you think that President she

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Speaker 2: is going to approach this meeting when you see China

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Speaker 2: as having a better long term strategy? Do they need

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Speaker 2: the US and global markets?

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Speaker 10: I think I think you know, She is going into

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Speaker 10: this meeting, I think with sort of probably a lot

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Speaker 10: less to gain than Trump and also less to lose.

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Speaker 10: You know, yes, the US market is important for China,

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Speaker 10: but I think what we've found out this year since

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Speaker 10: the tariffs have come into play, is that China's export

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Speaker 10: machine can actually survive pretty well without them. Exports so

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Speaker 10: at a record this year even with a fifty five

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Speaker 10: percent tariff cutting off a lot of trade with China.

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Speaker 10: So you know, for she the tariffs themselves right now

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Speaker 10: are not too much of a problem. Of course, he

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Speaker 10: doesn't want Trump to put those arrs up to one

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Speaker 10: hundred percent or even higher as promise, So I think

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Speaker 10: it's all about damage control. But I think in a way,

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Speaker 10: the Chinese has been quite clever in all of this.

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Speaker 10: With the rare earth leverage they've really sort of unlocked

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Speaker 10: this year. They've almost managed to turn the conversation from

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Speaker 10: what Trump wanted to be sort of a tariff for

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Speaker 10: about rebalancing trade with these export controls that China's now

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Speaker 10: put on the table. They're making it into more of

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Speaker 10: an export control conversation. And I think for she the

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Speaker 10: biggest goal going into this is what can you get

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Speaker 10: from that from Trump in terms of America's own export

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Speaker 10: controls on high tech equipment that China does need.

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Speaker 2: Yeah, that's interesting, isn't it? Turning the tables? And also

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Speaker 2: in the week where you've had the five year plan

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Speaker 2: from Chinese leaders emerging, of course, and China talking about

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Speaker 2: aiming to greatly increase self reliance and strength in science

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Speaker 2: and technology, so trying to become more independent. What would

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Speaker 2: be a win, Jenny in your view for the US?

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Speaker 2: I mean President Champ seems to want a quick deal

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Speaker 2: on lots of things for Trump.

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Speaker 10: I think the soybeans is of particular importance because it's

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Speaker 10: causing so many problems with US farmers and key voting states,

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Speaker 10: So that would be something sort of very easy for

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Speaker 10: him to seal on the table. He needs to make

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Speaker 10: sure that China keeps supplying magnets because earlier this year,

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Speaker 10: when they stopped doing that, we saw the US factories

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Speaker 10: were closing. And then I think he is serious about

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Speaker 10: the fentanel problem, you know, getting she to stop the

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Speaker 10: flow of these precursor chemicals, which are so critical to

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Speaker 10: America's opioid crisis, would be another win. And then I

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Speaker 10: think he just wants China to buy a lot more

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Speaker 10: as well from the US, So any commitments on that front,

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Speaker 10: maybe more plane orders from Boeing would also be a

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Speaker 10: win for Trump.

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Speaker 2: Okay, Jenny, thank you so much for being with us.

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Speaker 2: Jenny Marsh, who leads Bloomberg's team covering China's economy and government.

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Speaker 2: President Trump, of course, is doing a tool of Asia

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Speaker 2: starting on Sunday, Malaysia, Japan, South Korea, and then that

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Speaker 2: meeting REGI on Thursday to stay with us. More from

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Speaker 2: Bloomberg Day baqube coming up after this, speaking of that

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Speaker 2: soap opa that is global trade. It's been causing a

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Speaker 2: headache too for central banks here in the UK. Bank

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Speaker 2: of England policy makers are actually very divided about whether

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Speaker 2: it's going to stoke inflation or not. And President Trump's

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Speaker 2: belligerence towards the Fed has also raised lots of concerns.

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Speaker 2: Trump's closest ally even imitator here in the UK, Reform

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Speaker 2: UK's Nigel Farage maybe taking a leaf from his book,

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Speaker 2: because of course he's told Bloomberg's Michelle is saying that

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Speaker 2: he would replace the Bank of England Governor Andrew Bailey

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Speaker 2: if if he were to become Prime minister. And I'm

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Speaker 2: very pleased to say Michelle's with us in the radio

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Speaker 2: studio this morning. Caroline, Good morning for more on the

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Speaker 2: interview with Nigel Farage. This is really a very interesting scoop,

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Speaker 2: isn't it. How much is this maga politics being applied

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Speaker 2: to the UK. Well, we decided to do to talk

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Speaker 2: to Nigel Tharage and in a long conversation for the

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Speaker 2: latest episode of my new podcast, The Michelle Who's Saying Show,

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Speaker 2: because of the sustained lead that his party has had

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Speaker 2: in the opinion polls here in the UK over a

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Speaker 2: matter of months, and they've just come second in a

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Speaker 2: by election of vote for an MP just overnight here.

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Speaker 2: So that's the backdrop to this, the question of what

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Speaker 2: kind of prime minister might he make if it came

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Speaker 2: to that, And as you said a moment ago, an

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Speaker 2: election isn't doing the UK for quite a while.

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Speaker 1: But the sense we get from this, one of the

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Speaker 1: lines that emerged out of this is when I asked

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Speaker 1: him because he's sort of been needling at the Bank

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Speaker 1: of England for quite a while, and when I asked

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Speaker 1: him directly about Andrew Bailey, he said, well, we might

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Speaker 1: replace him. He's had a good run. We might replace

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Speaker 1: him if we came to office. So it's not fully

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Speaker 1: saying we would do this, but it's certainly setting a

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Speaker 1: tone which is similar to what President Trump has said

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Speaker 1: about j Powell.

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Speaker 2: Is casting it out there, isn't it. It's the possibility

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Speaker 2: are the Bank of England that fed really alike in

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Speaker 2: terms of independence, because there's a debate about that and

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Speaker 2: the UK's inflation rate right now it's running it nearly

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Speaker 2: twice the bank's rate, so it's not as if Bailey

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Speaker 2: is facing criticism now.

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Speaker 1: Of course, the two settings are really different. And actually

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Speaker 1: Nigel Farash himself, you hear him say it in this interview.

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Speaker 1: He is very careful on modeling himself on President Trump,

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Speaker 1: because President Trump is not popular in the UK. So

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Speaker 1: I played to him words that he said at the

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Speaker 1: big Conservative conference in the US earlier this year, where

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Speaker 1: he said the words will make Britain great again. But

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Speaker 1: he would say that to an American audience. He sort

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Speaker 1: of resiles from it when I put it from him

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Speaker 1: here because he knows that kind of language doesn't necessarily

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Speaker 1: go down well in this country. But he does make

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Speaker 1: it clear that he's looking to the Scottish parliament elections

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Speaker 1: next year, the Welsh Parliament elections, a whole a lot

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Speaker 1: of local government elections in England as well, and he

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Speaker 1: calls them the UK's mid term. So if you like,

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Speaker 1: he is setting those out as staging posts towards what

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Speaker 1: he hopes is his route to power.

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Speaker 2: Yeah, maybe mapping US politics onto the UK, which can

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Speaker 2: sometimes be difficult. Obviously, the countries are very very different.

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Speaker 2: Just in terms of this interview. I mean it is

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Speaker 2: hugely important and it comes with this care Philly by

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Speaker 2: election result before winning thirty six percent of the vote

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Speaker 2: in South Wales. So a lot of people are watching

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Speaker 2: these votes for what signal it might show.

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Speaker 1: And nadel Tharatu's calculation, and he says this explicitly in

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Speaker 1: this interview, is that while the next election is in

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Speaker 1: due for twenty twenty nine, he thinks is going to

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Speaker 1: happen sooner because of the economic climate and because the

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Speaker 1: governing party, Labor is going to be forced into it

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Speaker 1: by a loss of confidence from his own from their

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Speaker 1: own MPs. That's essentially what he's suggesting. So but we

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Speaker 1: get a full sense of what his messages might be

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Speaker 1: in this interview beyond the core ones that reform is

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Speaker 1: best known for, which is about immigration, what does he

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Speaker 1: represent or.

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Speaker 11: Mean beyond that? This is Bloomberg Daybreak Europe, your morning

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Speaker 11: brief on the stories making news from London to Wall

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Speaker 11: Street and beyond.

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Speaker 2: Look for us on your podcast feed every morning on Apple,

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Speaker 2: Spotify and anywhere else you get your podcasts.

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Speaker 11: You can also listen live each morning on London Dab Radio,

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Speaker 11: the Bloomberg Business app and Bloomberg dot Com.

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Speaker 2: Flagship New York Station is also available on your Amazon

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Speaker 2: Alexa devices. Just say Alexa play Bloomberg eleven thirty. I'm

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Speaker 2: Caroline Hepka and.

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Speaker 11: I'm Stephen Carol. Join us again tomorrow morning for all

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Speaker 11: the news you need to start your day right here

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Speaker 11: on Bloomberg Daybreak Europe