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Speaker 1: This is Bloomberg Daybreak here for this Monday, the twenty

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Speaker 1: February in London. Coming up today, seeking competition over conflict,

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Speaker 1: the US and China struggle to achieve a meeting of

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Speaker 1: minds the end of the beginning soonac looks to reset

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Speaker 1: EU relations with a Brexit deal on Northern Ireland, a

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Speaker 1: fee for your feed. Meta launches a subscription service across

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Speaker 1: Facebook and Instagram. Questions over Ireland's economic growth, Elon fails

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Speaker 1: to pick up the bill for Twitter and UK retail

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Speaker 1: in need of therapy. Those are the stories we're looking

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Speaker 1: at in today's papers and nine Leanne Gern's plus asking

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Speaker 1: prices head north in North London Camden rises by more

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Speaker 1: than seventeen That's all straight ahead on Bloomberg Daybreak Europe.

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Speaker 1: The business news you need to start your day in

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Speaker 1: just one fifteen minute podcast on Apple, Spotify, the Bloomberg

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Speaker 1: Business App and everywhere you get your podcasts. Good morning,

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Speaker 1: I'm Stephen Carroll and I'm Caroline Hecker. Here are the

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Speaker 1: stories that we're following today. The top diplomats from China

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Speaker 1: and the United States have traded barbs in a sign

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Speaker 1: of worsening ties in their first in person meeting since

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Speaker 1: the Chinese balloon was shot down above the United States,

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Speaker 1: Secretary of State Anthony B. Lincoln was blunt. I made

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Speaker 1: very clear to him that China sending a surveillance balloon

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Speaker 1: over the United States in violation of our sovereignty, in

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Speaker 1: violation of international law, was unacceptable and must never happen again.

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Speaker 1: Lincoln there on CBS's face the nation. Shortly after, he

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Speaker 1: met with China's Foreign Minister Wang Yi, who called the

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Speaker 1: balloon incident quote hysterical, just as I would say absurd

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Speaker 1: and hysterical. This is a abuse of the use of force. Wang.

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Speaker 1: He refused to even cool his conversation with Anthony B.

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Speaker 1: Lincoln an official meeting, arguing that the two and he

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Speaker 1: spoke because the US made a request. The sorrowing mood

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Speaker 1: goes beyond Rhustwick, though, as America is concerned, China is

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Speaker 1: weighing whether to give Russia weapons for the war in Ukraine.

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Speaker 1: The growing sense of unease between the two superpowers comes

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Speaker 1: as Goldman stratagists say Chinese stocks of the potential to

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Speaker 1: rise by twenty four percent this year. Bloomberg's Bryan Carters

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Speaker 1: has more from Hong Kong Goldman thinks the recent sell

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Speaker 1: off of Chinese stocks will reverse and that MSCI China

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Speaker 1: can at eight five by the end of the year.

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Speaker 1: That's up from around seventy. Now what's interesting about this

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Speaker 1: call is that the strategists say that the rise will

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Speaker 1: be led by earnings and not just multiple expansion. Some

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Speaker 1: investors might quibble with this given the rise in geopolitical

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Speaker 1: tensions of late and the property crisis, but the banks

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Speaker 1: us a shift from reopening to recovery that will deliver

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Speaker 1: windfall profits for business in Hong Kong. Brian Curtis, Bloomberg

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Speaker 1: Daybreak hero Now, Bloomberg understands that the Prime Minister Ishisunak

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Speaker 1: is preparing to unveil a d deal with the European

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Speaker 1: Union on Northern Ireland. If an agreement can be reached,

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Speaker 1: it could help to reset relations between the UK and

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Speaker 1: EU three years after Brexit. Speaking to Bloomberg's Maria Today

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Speaker 1: are at the Munich Security Conference, Sooner cautioned that nothing

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Speaker 1: has been finalized. There is still work to do, there

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Speaker 1: are still challenges to work through. We have not resolved

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Speaker 1: all these issues. No, there is no there isn't a

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Speaker 1: deal that has been done that there is an understanding

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Speaker 1: of what needs to be done. I've been in Northern

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Speaker 1: Ireland talking to parties there about the things that we

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Speaker 1: need to fix. We're working through those. We're working through

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Speaker 1: them hard and we will work through them intensely with

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Speaker 1: the EU. But we are by no means done. There

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Speaker 1: is no deal that has done. The Prime Minister issues

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Speaker 1: soon next, speaking there to Bloomberg's Maria today O Government

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Speaker 1: sources say that any deal is unlikely to be announced

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Speaker 1: before Tuesday. Facebook and Instagram's parent company appears to be

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Speaker 1: taking a leaf out of Twitter's book by offering verification

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Speaker 1: deals to subscribers. The service will include a handful of

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Speaker 1: additional parks and feature is including account verification, badgers, meta verified,

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Speaker 1: wild Cast eleven dollar month of purchased directly, and is

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Speaker 1: said to be primarily targeted at content creators. And Finally,

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Speaker 1: North London property prices are surging as young professionals returned

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Speaker 1: to jobs in the capital after the pandemic. Bloomberg's You

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Speaker 1: in Pots reports now. Property website right Move says asking

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Speaker 1: prices in Camden are seventeen percent higher than a year

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Speaker 1: ago and are up by six percent in the past

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Speaker 1: month alone. Neighboring Barnett and Islington also notched up and

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Speaker 1: your gains of about eight percent. The wider picture across

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Speaker 1: the capitol is more nuanced and asking prices are just

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Speaker 1: a snapshot, but the activity in Camden does suggest there's

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Speaker 1: burgeoning strength in the broader market. According to right Move,

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Speaker 1: average rates for a fifteen percent deposit five year fixed

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Speaker 1: rate mortgage and now about four point eight percent. That's

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Speaker 1: down from five point nine percent back in October after

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Speaker 1: the Liz Trust many budgets. Most economists do expect property

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Speaker 1: parties to be lower by the end of this year

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Speaker 1: than where they are now in London. I'm you and

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Speaker 1: pots Bloomberg Daybreak Europe. Okay, therese are a few of

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Speaker 1: our top stories for you this morning. You heard from

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Speaker 1: Rically Soon at the Prime Minister there, who was speaking

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Speaker 1: to our own Bloomberg. Maria Todeo, who was at the

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Speaker 1: Munich Security conference over the weekend. This is kind of

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Speaker 1: a hugely important forum where leaders from around the world gather.

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Speaker 1: I think it's quite interesting that there were protests anti

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Speaker 1: will protests on the streets in Munich over the weekend,

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Speaker 1: and of course it comes as the bathters awarded this

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Speaker 1: German language, real anti warn movie with a whole host

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Speaker 1: of awards, and that's all quite on the Western front,

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Speaker 1: of course, based on on the book around World War One.

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Speaker 1: But I just thought that was kind of an interesting tie.

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Speaker 1: I mean, it's it's the thing that I think people

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Speaker 1: in Europe are thinking about the war in Ukraine. Yeah,

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Speaker 1: and seeing the focus on that as well, very interesting

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Speaker 1: to hear the commentary outcoming out of that security conference

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Speaker 1: as well. In the terms of the Bathters, I was

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Speaker 1: watching to see the band She's vent A Sharon did

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Speaker 1: as well for four awards. Martin McDonough did make the

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Speaker 1: joke when he got up to accept the award for

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Speaker 1: Best British Film, Best wat Film because of course the

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Speaker 1: film was shot in Ireland with the Narge the Irish

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Speaker 1: cast and crew, but did have British funding starts how

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Speaker 1: it ended up in that category the BAFTAs as well,

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Speaker 1: But lots of winners to be watched out for, you know,

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Speaker 1: everything everywhere all at once. Not managing to win as

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Speaker 1: many prizes have been expected. That's a big, you know,

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Speaker 1: front runner for the Oscars as well, just one prize

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Speaker 1: and it's ten BAFTA nomination. There were eleven female directors.

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Speaker 1: So that made quite a splash, didn't it, in terms

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Speaker 1: of across all of the categories. Eleven female diet. That's

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Speaker 1: been a big issue, you know, trying to get more

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Speaker 1: women directors to be kind of noticed by these big awards. Yeah,

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Speaker 1: one bit of glamor for us to bring you on

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Speaker 1: a Monday morning. All right, up next, Ireland's economic growth

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Speaker 1: is real, insists its central banker Ellen fails to pick

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Speaker 1: up the bill for Twitter and UK retail is a

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Speaker 1: need of therapy. Now the paper review on blue Bird

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Speaker 1: Daybreak Europe. The views you need to know from today's papers.

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Speaker 1: Let's have a look at the papers with Bloom, Basley

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Speaker 1: and Garan's Good morning Leon. So the Financial Times headline

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Speaker 1: the Irish Central banker defends runaway economic growth as real. Yes, indeed, Caroline,

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Speaker 1: good morning to you. So an Irish theme after the

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Speaker 1: bathtors and now we're going to the ft Now. Speaking

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Speaker 1: to the Financial Times, the Governor of the Irish Central Bank,

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Speaker 1: Gabrielle mcclouf, said that much of Ireland's growth, which is

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Speaker 1: actually forecast to be twelve point two percent last year,

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Speaker 1: that's more than treble the EU average, comes from real

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Speaker 1: factories with real people, even if a lot of the

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Speaker 1: activity stems from these big tech companies and pharmaceutical groups.

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Speaker 1: Now mcclouth in this particular article is pushing back against

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Speaker 1: accusations that the high level of economic growth is distorted

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Speaker 1: and that's because of big US companies taking advantage of

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Speaker 1: Dublin's low corporate taxes. Now, the debate around this An

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Speaker 1: Island's economic outperformance really took center stage after the country's

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Speaker 1: three point five percent quarter on quarter growth in GDP

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Speaker 1: really single handedly prevented the Eurozone economy from stagnating in

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Speaker 1: the final three months of last year. Many big US companies,

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Speaker 1: including Google, Apple, Meta, Intel and Fiser have their European

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Speaker 1: basis in Ireland, which has a relatively low twelve point

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Speaker 1: five percent corporation tax. And also recently we heard that

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Speaker 1: the drugmaker astra Zenica wants to move some of its

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Speaker 1: services over to Dublin too instead of investing here in

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Speaker 1: the UK for the tax reasons. Yeah, I mean, it's

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Speaker 1: interesting to hear what Gary mccluse the argument is trying

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Speaker 1: to make is that it's not this is not just

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Speaker 1: due to intellectual property earning. It's actually there are factories

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Speaker 1: and manufacturing things, particularly when it comes to biomedical sciences,

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Speaker 1: Island as a massive exporter of that. The IRIS Statistics

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Speaker 1: Office actually has a different measure of GDP that they

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Speaker 1: used called G and I star, which strips out some

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Speaker 1: of the effects of globalization, and that's kind of what's

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Speaker 1: regarded more in terms of the how they measure the

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Speaker 1: performance of the Irish economy from the statistics point of

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Speaker 1: view in Ireland. But it's an interesting you know when

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Speaker 1: you when you look at the effect that Ireland's economic

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Speaker 1: growth had on the oldall are you reading in in

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Speaker 1: the Yeah, I mean look, but the twelve and a

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Speaker 1: half percent tax um um corporation tax that's been known

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Speaker 1: for a long time. The accusation is sort of nothing

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Speaker 1: new around around Ireland, but very very interesting though to

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Speaker 1: hear those comments from Macliffe. Look the Wall Street Journal

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Speaker 1: not that Elon Musque story. The wall Stree Journal says

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Speaker 1: that under Elon mask, Twitter faces suits claiming over fourteen

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Speaker 1: million dollars in unpaid bills. What's going on with the

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Speaker 1: bills of Elon Musque? Yes, indeed, Caroline, So since Elon

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Speaker 1: Musk took over Twitter, it's faced a grown list of

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Speaker 1: claims that it hasn't paid its bills as a social

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Speaker 1: media company is aiming to break even this year landlords,

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Speaker 1: consultants and vendors, and recent months have made demands for

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Speaker 1: payments in at least nine lawsuits now. According to The

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Speaker 1: Wall Street Journal, the complaints against the social media company

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Speaker 1: are said to be a fourteen million dollars plus interests,

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Speaker 1: so no small fee there. Musk career before Twitter included

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Speaker 1: very very close brushes with financial doom, including Tesner nearly nearly,

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Speaker 1: very nearly running out of money, and Elon Musk has

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Speaker 1: spoken about this on more than one occasion. Now. The

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Speaker 1: newspaper reports that Musk says, we're not behind because we

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Speaker 1: can't pay them, it's just because we're arguing whether the

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Speaker 1: parts are actually right. So he wants to have a

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Speaker 1: look at these deals again. I just want to bring

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Speaker 1: your attention to one outstanding invoice. It's for seven thousand

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Speaker 1: dollars and it was a swag bag gift box for

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Speaker 1: Elon Musk now included sand blasted logo on Japanese whiskey bottle,

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Speaker 1: an extra large bomber jacket, and more than two hundred

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Speaker 1: and fifty dollars worth of socks. I know, whiskey socks

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Speaker 1: and warmer jackets bag but in all honesty, it's you know,

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Speaker 1: other people are suffering because of these out these outstandings,

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Speaker 1: And I was going to say, you can't argue with

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Speaker 1: the bill by not paying it. Certainly not for the

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Speaker 1: landlords in London who are pretty frustrated by the sounds

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Speaker 1: of things. But yeah, that's an inter swing, the one

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Speaker 1: in the Wall Street Journal. Let's turn next to the Guardian.

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Speaker 1: The headline there last of nearly fifteen UK retail jobs,

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Speaker 1: a brutal start of according to a report. Yeah indeed,

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Speaker 1: and this is according to the Center for Retail Research,

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Speaker 1: and they're saying a majority of job losses are at

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Speaker 1: these big large retailers such as both Tesco and Asda.

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Speaker 1: Some of the main supermarkets that we shop in now

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Speaker 1: national retailers we do know this, including paper Chase, the

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Speaker 1: clothing chain, EMM and Co, a Chile giant, have all

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Speaker 1: gone by in recent weeks, well Wilco, new Look and supermarkets.

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Speaker 1: Tesco and Asda have all announced these job cuts. Now,

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Speaker 1: we do know that retail job losses have been mounting

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Speaker 1: for several years, and that even came before those lengthy

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Speaker 1: closures after repeated COVID lockdowns, and according to The Guardian,

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Speaker 1: large retail chains which have ten or more stores across

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Speaker 1: the UK High Street are doing the biggest cuts when

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Speaker 1: it comes to jobs. And a reevaluation of business rates,

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Speaker 1: which are among the largest operating costs for retailers, is

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Speaker 1: taking place from the first of April and looks likely

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Speaker 1: to reduce the rateable values used to determine bills. So

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Speaker 1: we are hearing about these massive job losses across the

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Speaker 1: high Street. We've seen lots of department stores closed. Here Caroline,

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Speaker 1: that was so used to seeing Debonym's and many of them,

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Speaker 1: and now we're just seeing these job losses across the

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Speaker 1: retail More pressure on the chances Jeremy Hahn to do

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Speaker 1: something about those. Business rates are a complaint of old

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Speaker 1: really for businesses and how they are affected. Thanks so much, Lean.

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Speaker 1: Going for a look at the newspapers. Well, let's get

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Speaker 1: more down the weekend's diplomatic maneuvers at the Munich Security Conference,

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Speaker 1: the US Secretary of State Anthony B. Lincoln and China's

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Speaker 1: top lip amout wang E mess but failed to calm

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Speaker 1: tensions after the shooting down of that suspected Chinese spy balloon.

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Speaker 1: For more, let's speak to Bloomberg's Bruce Einhorn in Hong Kong. Bruce,

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Speaker 1: did this meeting change anything in this ratcheting up of

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Speaker 1: tensions that we've had over the balloon incident? Well? I think, Um,

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Speaker 1: you know, you have to look at the glass half

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Speaker 1: full version of it, which is at least they're talking

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Speaker 1: to one another, right, Um. But Um, aside from that, no,

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Speaker 1: there wasn't. There wasn't a whole lot to point to

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Speaker 1: to show that tensions are easing. Of course, this is

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Speaker 1: um the first time that that there's been a high

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Speaker 1: level meeting between the two sides since the balloon incident. Um,

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Speaker 1: US Secretary History to Lincoln was supposed to be going

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Speaker 1: to China. He called off that visit. Um. They haven't

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Speaker 1: said that it was canceled. They said it's postponed. Um,

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Speaker 1: but we haven't heard anything about when it will take place.

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Speaker 1: And given the exchanges that took place in Munich, Um,

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Speaker 1: it's unclear when the two sides will be ready to

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Speaker 1: have that kind of a high level meeting. Okay, look

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Speaker 1: on the balloon issue, though it's in the past, and

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Speaker 1: it's kind of finger pointing. I think the bigger issue

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Speaker 1: surely is Ukraine. The kind of blunt statements that b.

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Speaker 1: Lincoln made about what China may do with Russia. Yes, so,

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Speaker 1: the Secretary of States said that the US has intelligence

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Speaker 1: that China is preparing to provide military assistance to Ukraine,

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Speaker 1: something that China has denied. China has said that far

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Speaker 1: from that, they're actually trying to arrange for some sort

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Speaker 1: of a peaceful settlement in Ukraine. Um. So again two

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Speaker 1: very distinct, very different views of what's happening between the

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Speaker 1: US and China when it comes to the Chinese role

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Speaker 1: in Ukraine. And meanwhile, Wangi seeking warmer political relations it

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Speaker 1: seems with the European Union. Uh, well, that is part

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Speaker 1: of a Chinese effort to try to split off the

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Speaker 1: Europeans from the Americans. Um We've seen that before, say,

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Speaker 1: with China's attempt to try to get the Netherlands to

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Speaker 1: not go along with U S sanctions when it comes

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Speaker 1: to semiconductors. That didn't succeed. We'll see if they have

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Speaker 1: any better luck this time. This is Bloomberg Daybreak Europe,

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Speaker 1: your morning brief on the stories making news from London

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Speaker 1: to Wall Street and beyond. Look for us on your

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Speaker 1: podcast feed every morning, on Apple, Spotify, and anywhere else

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Speaker 1: you get your podcasts. You can also listen live each

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Speaker 1: morning on London D A B Radio, the Bloomberg Business app,

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Speaker 1: and Bloomberg dot Com. Our flagship New York station is

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Speaker 1: also available on your Amazon Alexa devices. Just Say Alexa

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Speaker 1: played Bloomberg thirty. I'm Caroline Heitka and I'm Stephen Carroll.

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Speaker 1: Join us again tomorrow morning for all the news you

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Speaker 1: need to start your day right here on Bloomberg Daybreak

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Speaker 1: Europe eight