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

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Speaker 2: This is the Bloomberg Daybreak Europe podcast. Good morning, It's Thursday,

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Speaker 2: the thirtieth of October. I'm Stephen Caroll in London. Coming

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Speaker 2: up today a twelve out of ten meeting. Donald Trump

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Speaker 2: cuts tariffs on China after his face to face encounter

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Speaker 2: with Cheatingping. Reports suggests that open Ai is planning a

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Speaker 2: record breaking public listing, as Nvidia sees its valuations smash

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Speaker 2: another record, and in the Netherlands, the far right loses

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Speaker 2: ground in the country's parliamentary election as voters turn to

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Speaker 2: mainstream parties. Let's start with the roundup of our top stories.

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Speaker 2: The United States will immediately cut China's fentanyl related tariff

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Speaker 2: to ten percent after President Trump's face to face meeting

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Speaker 2: with Cheatingping. The Trump says the move brings the average

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Speaker 2: US levy on most Chinese goods down from fifty seven

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Speaker 2: percent to forty seven percent. Speaking on board Air Force

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Speaker 2: one after the meeting, Trump described his talks with she

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Speaker 2: as amazing and outstanding.

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Speaker 3: Did we agree to almost almost everything and a very

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Speaker 3: acceptable form. I wouldn't say everything was discussed because of

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Speaker 3: the thing said probably in retrospect. We could have discussed,

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Speaker 3: and we did, for some reason didn't come up.

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Speaker 2: Trump went on to say that the deal will also

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Speaker 2: see China resume soybean purchases and pause its rare earth

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Speaker 2: licensing regime for at least a year. The US president

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Speaker 2: has said the rated that he rated the meeting twelve

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Speaker 2: out of ten, and that he planned to travel to

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Speaker 2: China next April, with she due to visit the US

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Speaker 2: later in twenty twenty six. The comments indicate the leaders

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Speaker 2: largely formalized a framework agreement struck over the weekend by

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Speaker 2: Chinese and American officials. Now after his meeting with China,

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Speaker 2: g Trump also told reporters that leaders discussed artificial intelligence semiconductors.

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Speaker 3: We did discuss Jimson. He's going to be they're going

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Speaker 3: to be talking to Navidia and others about taking chips

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Speaker 3: if we make great chips, and Navidio is the leader,

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Speaker 3: and I'll be speaking to Jensen from Davidia, but they're

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Speaker 3: going to be discussing that with Davidia to see whether

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Speaker 3: or not they can do. I say, that's really between

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Speaker 3: you and Davidia, But we're sort of the arbitrator of

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Speaker 3: the referee.

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Speaker 2: However, the US President made clear he was not open

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Speaker 2: to giving Beijing access to Nvidia's most advanced Blackwell processors.

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Speaker 2: The comments came less than twenty four hours after in

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Speaker 2: Vidia each day historic five trillion dollar market capitalization. The

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Speaker 2: milestone comes only four months after the company passed the

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Speaker 2: four trillion dollar mark, and coincides with reports from Reuters

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Speaker 2: that the AI startup open Ai is preparing to go

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Speaker 2: public as soon as next year. The world's most valuable

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Speaker 2: startup is said to be targeting evaluation of one trillion

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Speaker 2: dollars is Some of the world's biggest tech companies reported

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Speaker 2: strong earnings, but investors are instead focusing on their spending

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Speaker 2: on AI. Revenues at Alphabet, Microsoft, and Meta all beat

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Speaker 2: estimates in the last quarter. Together, the firms racked up

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Speaker 2: some seventy eight billion dollars in capital expenditures last quarter,

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Speaker 2: up eighty nine percent from a year earlier. Meta also

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Speaker 2: warns that it's spending in twenty twenty six would be

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Speaker 2: notably larger than this year. Kurt Wagner is Bloomberg's senior

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Speaker 2: technology reporter.

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Speaker 1: If you were sitting here, you know, trying to get

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Speaker 1: comfortable with this idea that Meta is throwing tens of

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Speaker 1: billions per year, hundreds of billions over the next decade

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Speaker 1: on AI. You probably were hoping that the Q four

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Speaker 1: numbers were going to be a home run, right, not

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Speaker 1: just an inline sort of we'll do what we said

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Speaker 1: we were going to do. You want that to be

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Speaker 1: a lot larger if you're going to hear that the

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Speaker 1: spending is going to ramp up as dramatically as it

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Speaker 1: will in twenty twenty.

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Speaker 2: Six, Kurt Wagner speaking there as Meta's share is declined

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Speaker 2: by over seven percent and after hours trading. Microsoft shares

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Speaker 2: fell by four percent in after hours, as the software

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Speaker 2: giant warned it still suffering from a computing capacity crunch

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Speaker 2: shared in alphabet. Meanwhile, where the bright Spot up by

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Speaker 2: seven percent post market. Let's take you through some of

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Speaker 2: the bank's reporting earnings this morning. In Europe, Francis City

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Speaker 2: General has reported better than expected profit in the third quarters.

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Speaker 2: Fixed income trading gained and expenses declined. Revenue from trading debt,

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Speaker 2: securities and currencies rose by twelve percent from a year earlier,

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Speaker 2: offsetting a drop in equities trading revenue. Net income increased

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Speaker 2: by eleven percent to one point five two billion euros,

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Speaker 2: well ahead of what analysts were estimating. It was helped

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Speaker 2: by lower costs and declining credit provisions. Standard Charters has

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Speaker 2: raised its outlook for income and returns as it reported

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Speaker 2: third quarter profits the beat estimates. The Asia focused lenders

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Speaker 2: performance was boosted by a record quarter for wealth solutions.

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Speaker 2: It saw adjusted pre tax profits rise to just under

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Speaker 2: two billion dollars. We've also been hearing from Spain's bb

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Speaker 2: reporting net income for the third quarter that met average

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Speaker 2: analyst estimates, coming in just above two and a half

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Speaker 2: billion euros net income slightly better than had been expected

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Speaker 2: at six point sixty four billion euros as well. This

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Speaker 2: is the first set of results from BBVA since it's

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Speaker 2: nineteen billion dollar offer for rival Sabadell collapsed when it

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Speaker 2: was rejected by shareholders. Federal Reserve charg Jerown Powell as

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Speaker 2: warned investors against assuming policymakers will cut rates again in December.

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Speaker 2: That's after they voted ten to two for a quarter

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Speaker 2: point percentage cut on Wednesday. Speaking after the decision, Pals said,

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Speaker 2: the Center Bank's next move is not assured.

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Speaker 4: At a time when we have tension between our two goals.

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Speaker 4: We have strong views across the committee, and as I mentioned,

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Speaker 4: there were strongly differing views today and the takeaway from

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Speaker 4: that is that we haven't made a decision about December.

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Speaker 2: After Jerome Poal's remarks, investors paired their expectations of a

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Speaker 2: cut in December to around to seventy percent chance. That's

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Speaker 2: down from over ninety percent from before we heard from

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Speaker 2: the Fed chair. The UK's Prime Minister Cure Starmer has

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Speaker 2: refused to rule out major tax hikes in next month's budget.

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Speaker 2: When asked by the Conservative leader Kemmy Badenock if he'd

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Speaker 2: keep his pledge not to raise income tax, national insurance

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Speaker 2: or VAT, Starmer sought to blame her record in office.

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Speaker 5: The tourist did even more damage to the economy. Could

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Speaker 5: we previously saw? How we will turn that around.

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Speaker 2: The shift in language comes as economists see few alternatives

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Speaker 2: to hire taxes as the growth has been too temper

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Speaker 2: to restore the public finances. When earlier in the year,

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Speaker 2: Starmer was asked the same question by Badenoch, he'd simply

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Speaker 2: answered yes. This comes as a new survey of small

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Speaker 2: businesses shows confidence slumping ahead of the budget next month.

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Speaker 2: In the Netherlands, the progressive Democrats sixty six party appears

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Speaker 2: on track to win the Dutch parliament entry election after

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Speaker 2: voters delta blow to Catfielder's far out Freedom Party. According

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Speaker 2: to a preliminary forecast published by the Dutch news agency AMP,

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Speaker 2: based on half of the votes being counted, d sixty

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Speaker 2: six is set to win twenty seven seats in the

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Speaker 2: one hundred and fifty seat House of Representatives, with the

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Speaker 2: Freedom Party poised to win twenty five. That would be

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Speaker 2: a loss of twelve seats. The result would put Democrats

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Speaker 2: sixty six leader Rob Jetton in a position to form

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Speaker 2: a coalition government and potentially become the country's next prime minister.

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Speaker 5: Those are your top stories. On the markets.

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Speaker 2: Themscirish Pacific Index down two tenths of one percent. The

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Speaker 2: Nikkei in Tokyo actually slightly higher now on the day.

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Speaker 2: The Hangsang is down by four tenths. Eurosdox fifty features

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Speaker 2: are up by a tenth of one percent. On Wall Street,

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Speaker 2: futures are flat. Well had raised their losses after we

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Speaker 2: heard from President Donald Trump. The Number Dollars Spot Index

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Speaker 2: a tenth of one percent weeker. The euro is two

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Speaker 2: tenths stronger at one, sixteen twenty seven. In a moment,

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Speaker 2: we'll bring you the latest on what President's trump and

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Speaker 2: chooting being discussed at their meeting. Will also unpack the

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Speaker 2: latest FED decision and bring you more on the results

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Speaker 2: of the Dutch elections. We saw that drop in support

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Speaker 2: for the far right. But another story that we've been

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Speaker 2: reading this morning as well, what would convince you to

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Speaker 2: change your takeaway coffee order to sit in. This is

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Speaker 2: a mission that Starbucks has been on and Arcolic red

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Speaker 2: Brand has been writing about it. He's been looking at

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Speaker 2: data from placer dot ai, which shows the share of

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Speaker 2: visits of longer than ten minutes to Starbucks outlets has shrunk.

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Speaker 2: Since the current CEO, Brian Nickel, took over in September

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Speaker 2: twenty twenty four, it's been on a drive. Starbucks has

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Speaker 2: to try and speed up drinks orders and also return

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Speaker 2: cafes to the warm, cozy, comfortable environment. That's a quote

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Speaker 2: that were the company's original vision. Now that involves some redecorating,

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Speaker 2: but also putting back in soft furnishings the chain had

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Speaker 2: taken out and the same store sales did turn positive

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Speaker 2: at Starbucks last quarter, so that's a win. But There

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Speaker 2: is some concern too about the cost of these renovations.

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Speaker 2: That's been a big focus as well as the lenders

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Speaker 2: or the coffee outlet is also speeding up serving times

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Speaker 2: as well. Eighty percent of its strengths now served in

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Speaker 2: less than four minutes, so that is an improvement for

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Speaker 2: them as they've been beefing up staffing as well. Very

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Speaker 2: interesting to watch the strategy though, I was trying to

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Speaker 2: encourage people to stay but also get them their drinks faster.

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Speaker 2: To know which would encourage me in which direction. You

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Speaker 2: can read Red brandspiece on Bloomberg dot com and we'll

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Speaker 2: put a link to it on our podcast show Notes.

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Speaker 2: Let's bring you more now on what Donald Trump and

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Speaker 2: shooting being discussed during their ninety minute meeting. Our chief

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Speaker 2: North Asia correspondent Stephen Engel joins me now from Busan

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Speaker 2: in South Korea, where that meeting took place. Stephen, great

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Speaker 2: to talk to you. Donald Trump has been very positive

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Speaker 2: about this meeting, announcing the reduction in tariffs on Chinese goods.

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Speaker 2: Take us through the key headlines that we learned from

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Speaker 2: the meeting.

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Speaker 6: Yeah, so Donald Trump obviously wants to head back to

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Speaker 6: the United States, which he is on Air Force one

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Speaker 6: now heading back to Washington, DC, and to declare victory

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Speaker 6: essentially that they met the goals and they had a

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Speaker 6: very successful nearly week in Asia. He called the meeting

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Speaker 6: was hijenping here in Bussan this morning, which lasted about

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Speaker 6: an hour of forty minutes, was amazing, he said. He

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Speaker 6: actually went as far as to say on a scale

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Speaker 6: of zero to ten, he depicted it as a twelve,

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Speaker 6: So quite optimistic that this was a good meeting and

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Speaker 6: could be a springboard for more discussions. Obviously, I mean

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Speaker 6: the big takeaway, well, there's two takeaways. Really a lot

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Speaker 6: of the talks centered around fednyl, but the markets are

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Speaker 6: kind of not cheering it because there wasn't It was

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Speaker 6: more about what wasn't discussed between she and Trump that

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Speaker 6: the markets are reacting to. I can talk about that

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Speaker 6: in a little bit, but the key takeaway is that

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Speaker 6: the US will cut US FEEDNOL related tariffs by half

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Speaker 6: back to the original ten percent premium that they had

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Speaker 6: put on, and of course, you know subsequently over the

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Speaker 6: last six months they increase that to twenty percent because

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Speaker 6: of inaction by the Chinese. So he's basically cutting that

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Speaker 6: back to the original tariff that he had added to

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Speaker 6: Chinese goods because in action by the Chinese on fedel.

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Speaker 6: He says, she will take concrete steps to stop the

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Speaker 6: flow of those precursors, the chemicals that go in to fedanyl.

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Speaker 6: And the other thing is China, you know, will resume

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Speaker 6: soybean purchases, what Donald Trump says, a tremendous amount of soybeans,

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Speaker 6: and also pauses where Earth's licensing regime for at least

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Speaker 6: a year. We still haven't gotten the Chinese readout of

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Speaker 6: the top cell.

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Speaker 2: Okay, so we wait that with interest. But let's talk

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Speaker 2: about what we didn't learn from the meeting. What areas

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Speaker 2: weren't a supposed don't appear to have seen progress.

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Speaker 6: Well, you know, maybe Donald Trump did himself a disservice

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Speaker 6: yesterday by kind of outlining what he thinks could have

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Speaker 6: transpired today and then didn't because yesterday the issue of

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Speaker 6: Nvidia Blackwell chips being possibly available, maybe that's something that's

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Speaker 6: on the table. He can make it available to China now,

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Speaker 6: he says, Blackwell those are the most advanced AI accelerators

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Speaker 6: from Nvidia. They were not part of the discussions today,

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Speaker 6: even though she and Trump did talk about access to

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Speaker 6: some of the other products from Nvidia, but keep in

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Speaker 6: mind it's China that blocked the lower level AI chips

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Speaker 6: from Nvidia, the Age twenty that was approved for export

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Speaker 6: license to China, but then China said it's a security threat.

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Speaker 6: Possibly we don't want it. So I'm not sure exactly.

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Speaker 6: We need to get a better readout from the Chinese

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Speaker 6: or the further readout from Commerce department or the negotiators

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Speaker 6: to see why Blackwell was not.

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Speaker 5: Part of this discussion.

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Speaker 6: Also, Taiwan was not discussed, and the sale of TikTok

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Speaker 6: was not either or at least it wasn't mentioned by

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Speaker 6: Trump in the readout on Air Force one.

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Speaker 2: Just thinking about the overall impression we can take from

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Speaker 2: this meeting, though we did see the images of the

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Speaker 2: handshake which all looked very cordial as well, and you know,

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Speaker 2: as you said, Donald Trump has been extremely positive in

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Speaker 2: the wrap up of this as well. Can we describe

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Speaker 2: this as being a turning point in the US China relationship?

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Speaker 5: Well, it's not getting worse. Is that a turning point?

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Speaker 6: Is that positive? I would say yes, because the last

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Speaker 6: six months have been pretty chaotic in the relationship between

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Speaker 6: China and the United States, with both sides trying to

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Speaker 6: you know, as a game of upsmanship. China finding that

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Speaker 6: it's rare earth curbs expert curbs really did work. It

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Speaker 6: was a lever of use to the Chinese. Also, not

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Speaker 6: buying any soybeans was useful to the Chinese because it

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Speaker 6: brought the United States to the table to talk about

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Speaker 6: those things.

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Speaker 5: And Chi Jinping alluded to that.

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Speaker 6: He says, you know, sizable nations like the United States

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Speaker 6: and China, the two biggest economies in the world, We're

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Speaker 6: not going to always see eye to eye. It's normal

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Speaker 6: to have friction between the two biggest economies, the two

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Speaker 6: biggest superpowers now and then. But even Chi Jinping and

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Speaker 6: those aping remark said we should stay the course.

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Speaker 5: We're going to continue to talk.

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Speaker 6: And he was the one that mentioned we've had three

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Speaker 6: phone calls since he's taken over again a second term.

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Speaker 6: They've exchanged letters.

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Speaker 5: I didn't know people still wrote letters.

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Speaker 6: And then he says we've been in close contact, so

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Speaker 6: there is a sense of.

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Speaker 5: A cautious camaraderie.

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Speaker 2: Is that a term, Well, I'm going to coin it

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Speaker 2: right now, okay, and we'll give you that as someone

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Speaker 2: who's been following this so closely. Stephen, thank you very

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Speaker 2: much for joining us. That's our chief North Asia correspondent

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Speaker 2: Steven Engel there speaking to us from Busan and South Korea,

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Speaker 2: where the two leaders met.

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Speaker 5: Stay with us.

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Speaker 2: More from Bloomberg Daybreak Europe coming up after this when

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Speaker 2: investors have been watching the Trump she meeting very closely

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Speaker 2: as well, but they've also been parsing the words from

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Speaker 2: Federal Reserve, charge your own Powell and where interest rates

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Speaker 2: in the US will go next. And of course we've

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Speaker 2: had some results too from the likes of the big

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Speaker 2: tech companies as well. Our Markets Live excit could have

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Speaker 2: editor Mark Codmore joins us now for more in all

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Speaker 2: of this, Well, let's start with the big political meeting.

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Speaker 2: We've just been discussing Trump and Cheesting Ping talking tariff

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Speaker 2: rates are coming down. How our market's taking all of that.

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Speaker 7: Mark a whole lot of noise, but ultimately just completely underwhelming.

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Speaker 5: We learned nothing new.

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Speaker 7: Everything that Trump announced was what they negotiated in Malaysia

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Speaker 7: earlier in the week, So yeah, at least he just confirmed,

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Speaker 7: but it wasn't like we got any fresh developments.

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Speaker 5: And I guess the only.

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Speaker 7: Thing was disappointing was that we didn't get the Blackwell

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Speaker 7: and video thing, which was kind of hinted at yesterday.

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Speaker 7: So like underwhelming to very marginal disappointment. There wasn't the

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Speaker 7: expectations aside, we haven't heard from the Chinese side, but

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Speaker 7: really a lot of hoople, a lot of noise, not

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Speaker 7: loads from this meeting. I think overall this week US

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Speaker 7: China has brought things forward because but I said, a

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Speaker 7: lot of that was ash came earlier in the week

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Speaker 7: rather than today's headline meeting.

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Speaker 2: I mean, there's quite a lot on a regular week.

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Speaker 2: I don't know when we last had one of those,

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Speaker 2: but on a regular week be quite a lot to

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Speaker 2: be competing for investors attention as well. So interesting to

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Speaker 2: see that underwhelming reaction from from markets to this part

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Speaker 2: of that story. Let's talk a bit about the FED,

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Speaker 2: though again would more usually be a bit more center stage.

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Speaker 2: Jerome Powell cartioning investors against assuming there would be a

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Speaker 2: cut in December, or investors listening to that.

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Speaker 7: Like, I mean, we saw obviously rate cut bets for

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Speaker 7: December paired back a little bit, but that's still the

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Speaker 7: base case is a cut there.

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Speaker 5: You know that they heeded it.

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Speaker 7: We saw a bit of a move and in yields yesterday,

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Speaker 7: but they're not going to care much in terms that

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Speaker 7: the blackout period now nds for other FED speakers will

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Speaker 7: get more FED speakers on top. Soon we'll get people,

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Speaker 7: you know, like Bowman out coming out saying, oh, we need.

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Speaker 5: Rate cuts, et cetera.

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Speaker 7: You know, if they don't get rate cut pricing back

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Speaker 7: in for December and might get Trump back on it.

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Speaker 7: The fact is they don't have much data. And while

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Speaker 7: Pale might be leading a cohort in the FED that

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Speaker 7: doesn't want to cut rates, and I'd be in that cohort,

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Speaker 7: I completely get it that the pressure from the market,

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Speaker 7: from the consensus from the administration is to continue cutting rates.

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Speaker 5: And I really I.

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Speaker 7: Think that the the the impetuses the on the data

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Speaker 7: to prove that that rate cut shouldn't be delivered. Sure,

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Speaker 7: we've changed pricing for December from above ninety percent to

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Speaker 7: like seventy percent or something that I haven't checked for

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Speaker 7: a few hours, but it's not a material move.

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Speaker 2: Yeah, I can tell you it's currently seventy percent. Sixty

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Speaker 2: nine point seven percent is the chance. So we're looking

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Speaker 2: at the WRP function on the terminal. At the moment,

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Speaker 2: we've also had the Bank of Japan holding rates. The

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Speaker 2: ECB is also expects to hold rates later on today

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Speaker 2: as well. Is the central bank excitement over for now?

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Speaker 7: I mean, we've got some more to come, as you say,

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Speaker 7: But yes, I mean, actually I think I'm interested to

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Speaker 7: hear what you know, Governor Awada says. Bank of Japan

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Speaker 7: governor says later on, So that's coming up very soon.

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Speaker 7: That'll be interesting next week. Bank of England obviously might

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Speaker 7: be quite interesting. Probably more inched in the RBA next week.

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Speaker 7: So you got a little bit more such bank excitement.

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Speaker 7: But really the major game in town, I mean, I

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Speaker 7: think US China is important. But now we've got the

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Speaker 7: meeting and so far we'll wait for the China readout.

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Speaker 7: There hasn't been another incremental development there. So the only

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Speaker 7: major game in town is AI and that's why earnings

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Speaker 7: the moment are more important than.

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Speaker 5: What we see in that.

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Speaker 7: I do wonder whether you know the price action in

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Speaker 7: video got very excited, yesterda. We got that headline number

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Speaker 7: of five trillion market cap, which which brought back memories

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Speaker 7: to some of us have when we got the headline

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Speaker 7: about Microsoft reaching six d billion dollars market cap back

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Speaker 7: in the dot com bubble, that was like a week

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Speaker 7: before the top with you combine that with you know,

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Speaker 7: the jump hire and price, the disappointing price action, and

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Speaker 7: now that that Trump didn't deliver on hopes of Blackwell

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Speaker 7: chips been discussed with China. Maybe in video comes lower today,

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Speaker 7: So maybe stocks are a bit saugur in short term.

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Speaker 5: But really AI is dominating central banks at the moment.

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Speaker 2: Yeah, Like on that point, what we heard from from

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Speaker 2: Alphabet and Meta Microsoft yesterday, this seventy eight billion dollars

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Speaker 2: figure in the last quarter. I mean, is there is

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Speaker 2: there nervousness that that's too much or that there's not

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Speaker 2: returns being delivered on those sorts of investment as well,

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Speaker 2: because I mean Master is promising that number is a

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Speaker 2: only going to increase completely.

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Speaker 7: There's nervousness and correctly so that the big issue though

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Speaker 7: is not like the vast majority of people in markets

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Speaker 7: would agree not I know, not everyone would agree that

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Speaker 7: we're somewhere in the AI capex bubble, but it's where

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Speaker 7: we're at.

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Speaker 5: Balls would argue, we're at the early stage. Again.

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Speaker 7: We talked about this in the show yesterday, the idea

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Speaker 7: of just because you identify a bubble, that's not necessarily bearish.

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Speaker 7: The best way to make money in the market is

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Speaker 7: to identify a bubble and get on board. And so

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Speaker 7: Balls would say, we're at the early stage. This is

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Speaker 7: like not an issue. You know, revenues are set to

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Speaker 7: keep on growing increasing, and you know we're a long

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Speaker 7: way from like playing.

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Speaker 5: Any kind of negative idea about this.

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Speaker 7: And the Bears would say, well, looked, as you know,

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Speaker 7: revenues aren't going to increase much mere in fact, adoption

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Speaker 7: is slowing.

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Speaker 5: We're seeing the signs of that.

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Speaker 7: And in fact, as these companies try to raise prices

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Speaker 7: to increase revenues, people are actually going to turn off adoption.

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Speaker 7: And so therefore it's just where we are on that

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Speaker 7: that bubble. I'm in the camp that we're we're not early,

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Speaker 7: but we're also not right at the end. But I'm

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Speaker 7: nervous about it because it is such a massive CAPEX bubble.

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Speaker 5: I don't know.

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Speaker 7: I'm completely open minded. I will be ready to change

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Speaker 7: my mind in this in a moment if I get

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Speaker 7: as I get new information, as you get more earnings.

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Speaker 7: But my base case assumption right now is that the

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Speaker 7: bubble bursting is for twenty twenty six and not for

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Speaker 7: right now.

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Speaker 2: Okay, Mark godmore, our Markets Live executive editor. You can

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Speaker 2: read the latest from Mark and his colleagues at M

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Speaker 2: Live on the terminal as well.

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Speaker 5: Now.

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Speaker 2: Voters in the Netherlands have turned away from the far

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Speaker 2: right party of Fielders, instead backing mainstream political groups and

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Speaker 2: yesterday's general election, the votes are still being counted and

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Speaker 2: forming a government will take some time. Let's bring in

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Speaker 2: our reporter Micau Cabala for more on this story. Micau,

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Speaker 2: what is the latest that we have in terms of

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Speaker 2: the results of this election.

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Speaker 8: Yeah, the Dutch elections look set for close race between

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Speaker 8: here the builder's far right Freedom Party and the centrist

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Speaker 8: Democrats sixty six.

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Speaker 5: We have an ipsus.

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Speaker 8: Rejection showing d sixty six could potentially win about twenty

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Speaker 8: seven seats in the one hundred and fifty seat parliament,

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Speaker 8: with the Freedom Party just behind at twenty five. That's

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Speaker 8: a loss of twelve seats for the far right force there.

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Speaker 8: From early morning local time projections, though the Dutch news

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Speaker 8: agency ANP estimated that both parties could stand neck and

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Speaker 8: neck add twenty six seats each. All these are based

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Speaker 8: on partial results, so we're still waiting for more clarity,

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Speaker 8: but so far the projections suggest a big boost forty

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Speaker 8: sixty six and its leader, rob rob Yetten, and a

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Speaker 8: setback for the Freedom Party, which appears to be down

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Speaker 8: from the thirty seven seats of Builders one two years ago.

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Speaker 2: Given those that picture that we have emerging from those

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Speaker 2: partial results, what could the next government look like and

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Speaker 2: who's likely to lead us well?

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Speaker 8: What is important is that almost all major Dutch parties

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Speaker 8: have ruled out working with the Builders, and with the

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Speaker 8: current projections, the Fidom Party is effectively blocked from forming

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Speaker 8: a cabinet, so attention is now likely to turn to

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Speaker 8: Robbie Yetten and the Progressive D sixty six, who is

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Speaker 8: even said to become next prime minister. That means a

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Speaker 8: more mainstream centrist cabinet after two years of far right rule.

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Speaker 8: But when it comes to specific it is really too

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Speaker 8: early to say. Forming a government in the Netherlands is

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Speaker 8: infamously complicated. There's hardly any threshold for a party to

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Speaker 8: enter the lower House, so usually takes several of them

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00:22:40,720 --> 00:22:44,480
Speaker 8: coming together to reach a majority of seventy six seats.

439
00:22:45,640 --> 00:22:48,840
Speaker 8: After you know, last elections, there were fifteen parties in

440
00:22:48,880 --> 00:22:51,399
Speaker 8: the parliament and it took four of them seven months

441
00:22:51,400 --> 00:22:54,159
Speaker 8: to form a coalition. It's among the slowest countries in

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Speaker 8: Europe to form a government. And you know, with Yeten's

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00:22:58,440 --> 00:23:02,320
Speaker 8: D sixty six's centris stance, they could be looking, they

444
00:23:02,320 --> 00:23:05,040
Speaker 8: could left, they could be working right to form a

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00:23:05,040 --> 00:23:08,560
Speaker 8: workable alliance and all that means only the coming months

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00:23:08,600 --> 00:23:09,200
Speaker 8: will tell.

447
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Speaker 2: Yeah, indeed, and plenty of negotiations to be had from

448
00:23:12,080 --> 00:23:14,440
Speaker 2: here as well. What will be the key challenges though

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Speaker 2: in store for the next government In the Netherlands.

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Speaker 8: A lot of the campaigning has centered on anger over immigration.

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Speaker 8: That was Fielders, you know, slamming migration from Islamic countries,

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Speaker 8: pushing an anti Islam rhetoric, saying the religion is putting

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Speaker 8: freedom in the Netherlands in peril. On migration, the D

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Speaker 8: sixty six that's called for finding a more balanced approach

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Speaker 8: between you know, finding a balance between attracting and international

456
00:23:42,600 --> 00:23:46,560
Speaker 8: specialist staff needed in the country and ditching workforces that

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00:23:46,760 --> 00:23:50,440
Speaker 8: are less crucial to the economy. Other issues have been

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Speaker 8: put forward, notably the housing shortage. Yet and primarily focused

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Speaker 8: on that because that consistently ranked as the top concern

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Speaker 8: for Dutch voters, but there's also the fears of Netherlands,

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Speaker 8: the Netherlands losing its competitive edge, and the next cabinet

462
00:24:07,200 --> 00:24:11,000
Speaker 8: will also have to navigate the recent seizure by the

463
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Speaker 8: government of Chinese owned Chickmaker and Experia, So that's a

464
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Speaker 8: diplomatic fallout.

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Speaker 5: To definitely keep an eye out.

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Speaker 2: For mcause a lot of those issues or issues being

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Speaker 2: debated also at a European level. What does this result

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Speaker 2: mean for the European Union? In Europe more broadly, it

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Speaker 2: does speak of a trend of sorts. Two years ago,

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Speaker 2: when Hitfielders and his Freedom Party won the election, it

471
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Speaker 2: was read as another chapter in Europe's for right surge.

472
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Speaker 2: Now it seems to be that Filders has lost that momentum,

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Speaker 2: and that anyway stands in contrast to gains by nationalist

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Speaker 2: parties elsewhere. You know, we can look at Germany's AfD

475
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Speaker 2: or France's National Rally from a European Union point of view.

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Speaker 2: The nether Ldan's remains and has remain anchored in the

477
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Speaker 2: pro EU sort of mainstream. But this fragmented result that

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Speaker 2: we're likely to see just shows how volatile your politics

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Speaker 2: have become. We have this split between populist, green, centrist, conservative,

480
00:25:20,600 --> 00:25:25,600
Speaker 2: conservative and other forces, and all of those factors are

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Speaker 2: really reshuffling at the political deck. In here in Europe,

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Speaker 2: this is Bloomberg Daybreak Europe, your morning brief on the

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00:25:33,800 --> 00:25:36,840
Speaker 2: stories making news from London to Wall Street and beyond.

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00:25:43,359 --> 00:25:46,439
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00:25:46,440 --> 00:25:49,119
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00:25:49,200 --> 00:25:51,960
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00:25:56,920 --> 00:25:59,919
Speaker 5: I'm Caroline Hepka and I'm Stephen Carroll. Join us again tomorrow.

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