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

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Speaker 2: This is the Bloomberg Day ba Q podcast, available every

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

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Speaker 2: the eighteenth of June in London. I'm Caroline Hepya.

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Speaker 3: And I'm Stephen Carroll. Coming up today, Donald Trump meets

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Speaker 3: his national security team as speculation swirls that the United

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Speaker 3: States could join Israel's fight against Iran.

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Speaker 2: Open Ai Sam Altman says that Meta has offered some

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Speaker 2: of his team one hundred million dollars signing bonuses in

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Speaker 2: a bid to lure away top talent.

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Speaker 3: Plus why low taxes, time zones and a tailor made

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Speaker 3: lifestyle are leading a growing number of hedge fund traders

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Speaker 3: to push their firms into Dubai and Abu Dhabi.

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

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Speaker 3: Bloomberg n just hands that US President Donald Trump met

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Speaker 3: his national security team for more than an hour yesterday

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Speaker 3: to discuss the escalating conflict in the Middle East. Before

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Speaker 3: gathering his advisors in the situation room, Trump posted a

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Speaker 3: demand for Iran's unconditional surrender on social media. The US

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Speaker 3: president also warned of a possible strike against the country's

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Speaker 3: supreme leader Iatala Kamene, saying that we are not going

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Speaker 3: to take him out, at least not for now. According

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Speaker 3: to a White House official, Trump also spoke to Israeli

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Speaker 3: Prime Minister Benjaminetta Nyaho as speculations world the US may

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Speaker 3: oup to join them in directly attacking Iran.

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Speaker 2: Germany's Chancellor Fredrick Mertz says that the US has been

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Speaker 2: considering military intervention in Iran, and if it doesn't return

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Speaker 2: to the negotiating table, then quote, the complete destruction of

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Speaker 2: Iran's nuclear program may be on the agenda. Bloomberg's Nick

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Speaker 2: Woodhams leads our team covering US national security.

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Speaker 4: The big question, of course, is what now. So it

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Speaker 4: seems that there are essentially two options on the table.

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Speaker 4: One is the US gets involved, so that's one potential option,

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Speaker 4: and the other is another effort for diploma scene.

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Speaker 2: Bloomberg's Nick Wadhams speaking there as The New York Times

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Speaker 2: reports that American commanders have put troops on high alert

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Speaker 2: throughout the Middle East, where they aren't preparing missiles for

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Speaker 2: possible retaliatory strikes or US military interests. The US Embassy

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Speaker 2: in Jerusalem and Contulus sections in Tel Aviv will be

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Speaker 2: closed for the next three days.

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Speaker 3: So the US President choose to deepen military involvement, he

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Speaker 3: would have the most formidable arsenals in the world at

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Speaker 3: his disposal, including a suite of advanced weaponry capable of

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Speaker 3: altering the course of the conflict. Remember zo in Parts

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Speaker 3: has more.

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Speaker 5: The US has a range of military assets that it

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Speaker 5: could bring to bear, including the thirty thousand pounds Massive

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Speaker 5: Ordnance Penetrator or MOP, commonly known as the bunker buster

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Speaker 5: bomb the GPS guard. The ammunition has been widely touted

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Speaker 5: as the only weapon capable of crippling Turan's nuclear ambitions.

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Speaker 5: Experts say a successful strike would require hitting four dow

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Speaker 5: Around's heavily fortified underground uranium and Richmond facility, built beneath

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Speaker 5: a mountain and believed to be buried sixty to ninety

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Speaker 5: meters deep. The site is considered virtually impervious to conventional weapons.

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Speaker 5: Many defense analysts argue that only the MOP, a weapon

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Speaker 5: uniquely held by the United States, stands a chance of

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Speaker 5: inflicted to serious damage. Its deployment would require a US

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Speaker 5: strategic bomber, underscoring the scale and complexity of such an operation.

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Speaker 5: In London, i'm une pots of Bloomberg Radio well.

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Speaker 2: Both Israel and Iran have indicated plans to escalate the conflict,

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Speaker 2: which has seen these sworn enemies exchange missile salvos for

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Speaker 2: five consecutive days. Israel's military says that it has identified

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Speaker 2: missiles launched from Iran towards Israel and has instructed the

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Speaker 2: public to take shelter in protected spaces. Meanwhile, the Israeli

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Speaker 2: Defense Minister Israel Katz says that the military will target

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Speaker 2: quote very significant sites in Tehran, adding that residents should

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Speaker 2: evacuate the latest strikes from both sides of pushcres price

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Speaker 2: is higher yet again. The price of oil has now

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Speaker 2: extended its advance over the past week to approximately ten percent.

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Speaker 3: What another news, traders have made record bets that the

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Speaker 3: next Federal Reserve chair will slash rates immediately. The wagers

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Speaker 3: in rates futures have been gaining momentum since President Trump

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Speaker 3: said he would name Jerome Pell's successor very soon and

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Speaker 3: has seen record volumes this week. Partner in chief economist

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Speaker 3: at Apollo Global Management, Toryston Slock, says the Central Bank

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Speaker 3: is at a crossroads.

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Speaker 1: The fetish stock with a dual mandate.

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Speaker 3: That's really torn.

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Speaker 1: On the one hand, the offside pressure on inflation from

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Speaker 1: turfs from other prices.

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Speaker 3: That's saying that inflation will be going up, and if

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Speaker 3: inflation is going up, the FET.

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Speaker 6: Should be hiking. But at the same time those shots

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Speaker 6: also will be pointing in the direction of growth slowing down,

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Speaker 6: and if growth is slowing down, then FETCH should.

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Speaker 3: Be cutting Apollo's Torston slock. There By the end of

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Speaker 3: this year, traders are pricing in roughly forty three basis

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Speaker 3: points of total easing. Officials are widely expected to leave

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Speaker 3: interest rates unchanged for a fourth straight meeting today, even

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Speaker 3: as policymakers war in Trump administration, tariffs could increase inflation

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Speaker 3: and unemployment.

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Speaker 2: Now turning to the UK, the government is looking to

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Speaker 2: restrict the number of visas that it gives to countries

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Speaker 2: which refuse to look at joint migrant return schemes. It's

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Speaker 2: part of a push by Prime Minister Keir Starmer for

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Speaker 2: more assertive measures to reduce the levels of net migration.

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Speaker 2: Bloomberg's James Wilcock has.

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Speaker 7: More the UK government desperately wants to bring net migration

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Speaker 7: figures down, as the number of people crossing the English

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Speaker 7: Channel illegally surges for a Prime minister who has made

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Speaker 7: cracking down on people smuggling gangs a priority. That's the problem.

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Speaker 7: Starmer's solution is deals with individual countries to return fail

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Speaker 7: the salum seekers their country of origin, but Britain only

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Speaker 7: has signed eleven of those. The government now wants to

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Speaker 7: use visas as leverage to get more agreements done. In London.

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Speaker 7: James Wilcock, Bloomberg Radio.

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Speaker 3: And Open AICEO Sam Altman says Meta has been trying

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Speaker 3: to poach some of his staff with signing bonuses as

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Speaker 3: high as one hundred million dollars. Met has been trying

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Speaker 3: to build up a new top tier AI team by

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Speaker 3: buying Scale AI and looking to hire engineers from rivals,

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Speaker 3: but Altman told his Brothers Uncapped podcast that he doesn't

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Speaker 3: think the approach would work.

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Speaker 8: People sort of look at the two paths and say,

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Speaker 8: all right, Open Eye has got a really good shot,

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Speaker 8: a much better shot at actually delivering on superintelligence, and

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Speaker 8: also may eventually be the more valuable company. But I

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Speaker 8: think the strategy of a ton of upfront guaranteed common

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Speaker 8: that being the reason you tell someone to join, like

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Speaker 8: really the degree to which they're focusing on that and

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Speaker 8: not the work and not the mission. I don't think

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Speaker 8: that's going to set up a great culture.

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Speaker 3: The open AICEO out of that, nobody from his company

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Speaker 3: had yet accepted an offer from Mark Zuckerberg, who has

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Speaker 3: been personally recruiting. The hiring push and fourteen billion dollar

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Speaker 3: parties of Scale a I are a sign of matters

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Speaker 3: desperation not to fall behind on the new technology race.

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Speaker 2: And those are top stories for you this morning. Let's

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Speaker 2: look at the markets now. Escalating tensions in the Middle

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Speaker 2: East and the worry around more direct US involvement has

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Speaker 2: oil prices as surging, although not this morning. In the

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Speaker 2: last few minutes, of course, BoNT crude futures down a

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Speaker 2: tenth of one percent seventy six dollars thirty three the bar,

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Speaker 2: but we are still around five month highs. The FEDS

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Speaker 2: expected to stay on hold today. In terms of US

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Speaker 2: interest rates, Europeans stop futures this morning are down by

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Speaker 2: three tenths of one percent. US stop futures getting a

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Speaker 2: small boost with this idea that regulators in the US

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Speaker 2: plan to reduce a key capital buffer for the biggest

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Speaker 2: US lenders that could generate more treasuries trading at least

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Speaker 2: that's the potential upside. The S and P five hundred

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Speaker 2: yesterday actually closed eight tenths of one percent lower, but

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Speaker 2: stop futures for the S and P at the moment

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Speaker 2: up by a tenth of one percent. The Bloomberg Dollar

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Speaker 2: Spot indexes is down a tenth of one percent, and

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Speaker 2: looking at the bond market's tenure yields trading upper basis

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Speaker 2: at four point four percent. Those are the markets in

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Speaker 2: a moment.

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Speaker 3: More on what the US could do next in the

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Speaker 3: Iran Israel conflict, plus why hedge fund managers are leaving

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Speaker 3: London for the United Arab Emirates. But another story that

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Speaker 3: Katai this morning, will war might be on the minds

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Speaker 3: of many. It's conspicuously absent from the Art baslfair in Switzerland.

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Speaker 3: Our colleague James Army has been writing about this and

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Speaker 3: how dealers say that a lot of buyers are taking

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Speaker 3: refuge in art in the uncertain times that we're in,

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Speaker 3: and that's actually reflected and the kind of art that's

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Speaker 3: on offer at this big flagship event for the art business.

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Speaker 3: James writing that nearly every artwork on offer at the

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Speaker 3: fair was in his words lovely and day political.

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Speaker 2: Apolitical, yes, okay, well, hang on a second. The art

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Speaker 2: market has also been in a very long slump, and

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Speaker 2: so perhaps that's also behind it. It wasn't that there

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Speaker 2: were no political statements at all. I mean I noticed

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Speaker 2: Barbara Krueger's work of course that did sell at six

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Speaker 2: hundred and fifty thousand dollars and actually the piece untitled

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Speaker 2: Bracket's Wartime War Crime, and it's got her kind of

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Speaker 2: typical typeface, you know, talking about war and the worries.

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Speaker 2: So there were some, but yes, as you say, they

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Speaker 2: were rare.

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Speaker 1: Yeah.

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Speaker 3: James also picks the Dutch artist Jonah Starle has got

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Speaker 3: a range of pictures of burning yachts and gets. You

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Speaker 3: want to find the subliminal masching there as well. Art

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Speaker 3: Basil opens to the public from tomorrow. You can read

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Speaker 3: James Charming's report on blootberg dot com and we'll put

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Speaker 3: a link to his article in our podcast show notes.

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Speaker 2: Okay, let's get to our top story.

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Speaker 1: Then.

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Speaker 2: Israel and Iran are continuing to exchange far for a

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Speaker 2: sixth day. As the focus shifts now to what the

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Speaker 2: US president will do next. Donald Trump met his national

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Speaker 2: security team in Washington, he spoke to Israel's Prime minister.

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Speaker 2: He's also called for Iran's unconditional surrender. Our EMEA News

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Speaker 2: director Wilson Matheson joins US Now for more. Rol's good morning.

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Speaker 2: What's the latest that we're hearing then from Iran and

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Speaker 2: Israel this morning.

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Speaker 6: Well, it seems like there's been no let up overnight

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Speaker 6: in the attacks, and so we know that Iran fired

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Speaker 6: missiles again at Israel, and Israel is saying that it

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Speaker 6: did target a number of sites inside Iran in the

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Speaker 6: wee hours. Their reports of loud explosions in Tel Aviv,

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Speaker 6: Israel says they hit a facility that was used to

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Speaker 6: manufacture centrifuges, a number of other weapons sites, they say,

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Speaker 6: across Iran. So they're continuing to strike multiple sites in

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Speaker 6: the country, Iran again striking back in turn. Most of

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Speaker 6: those seem to still be getting intercepted by Israel's air

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Speaker 6: defenses with defensive support from the US. We know that

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Speaker 6: that's been happening. So the sense is, despite what the

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Speaker 6: US President is saying, in the growing sense that perhaps

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Speaker 6: the US is gearing up to take on a more

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Speaker 6: offensive role in this conflict between Iran and Israel, at

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Speaker 6: least for now, they're continuing to really pound each other.

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Speaker 3: What are the options that are open to Donald Trump

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Speaker 3: before thinking about what the US does next. Do we

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Speaker 3: have any indication of what he could be considering.

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Speaker 6: Well, it seems a lot of options are on the table,

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Speaker 6: and we know that he met with his security team

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Speaker 6: for an hour late last night our time. There's been

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Speaker 6: no read from that meeting, although he did of course

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Speaker 6: speak with the Israeli Prime minister afterwards. So what are

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Speaker 6: the options? It seems like he's yet unsure what to do.

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Speaker 6: To continue in the defensive support for Israel, defending Israel

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Speaker 6: against his Iranian missiles, leaning on Iran to get back

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Speaker 6: to the table somehow, or again pushing the US into

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Speaker 6: a much more direct role in attacking Iran and taking

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Speaker 6: this as a moment to really try and destroy Around's

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Speaker 6: nucleo sites once and for all. And of course the

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Speaker 6: question is if you do that option, are you opening

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Speaker 6: US assets in the region to direct attack from Iran?

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Speaker 6: And so are we looking at the potential for a

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Speaker 6: much wider conflict as a result.

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Speaker 2: Well, Chancellor Fredrick Mertz in Germany seemed to indicate that

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Speaker 2: that might be a possibility too, and what he said,

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Speaker 2: how representative do you think his comments are on what

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Speaker 2: Europe thinks at the moment on the European position here.

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Speaker 6: Well, there's obviously a lot of concern in Europe about

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Speaker 6: where this is going in a sense to some extent

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Speaker 6: that European leaders are a bit on the sidelines with it.

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Speaker 6: I mean, the French President Emanuel mccron has long seen

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Speaker 6: himself as a bit of an Iran whisperer and able

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Speaker 6: to bring people to the table, and yet he and

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Speaker 6: Donald Trump are publicly squabbling with each other at the

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Speaker 6: moment in the aftermath of the g seventh summit in

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Speaker 6: Canada and taking potshots at each other. And so the

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Speaker 6: sentence is this is really the US dealing directly with

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Speaker 6: Israel and other with Golf states in the region. Of course,

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Speaker 6: we know that you know, the Saudis, among Geordan, other

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Speaker 6: countries are in communication with the US, possibly through European

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Speaker 6: intermediaries as well, but that Europe doesn't really have a

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Speaker 6: voice in this conversation, even though there are quite clearly security,

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Speaker 6: defense and other rammifications for Europe in all of this.

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Speaker 6: But a bit like where things have gone on Ukraine,

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Speaker 6: for a bit. It seems as though, you know, Europe's

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Speaker 6: finding itself on the outs.

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Speaker 3: Okay Rasler, martinari Amio news director, thank you for joining

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Speaker 3: us now.

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Speaker 2: Hedge funds have been rushing to set up in the

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Speaker 2: United Arab Emirates in recent years, driven not just by

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Speaker 2: low taxes and local wealth, but also a need to

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Speaker 2: keep star traders happy. And it's London that's losing out.

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Speaker 2: The city has lost by far the biggest number of

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Speaker 2: jobs too. The UAE. Joining us now is our hedge

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Speaker 2: fund reporter Hemma Palmer, who is based in Dubai. Good morning,

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Speaker 2: thanks for being with us. How big has this shift

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Speaker 2: to the UAEB for the hedge fund industry something that

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Speaker 2: you've been reporting on in depth.

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Speaker 1: It's been quite significant. You're seeing all of the large

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Speaker 1: hedge funds essentially in New York now having outposts in

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Speaker 1: the Middle East, specifically in the UAE, and so it's

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Speaker 1: one of the biggest shifts that we've seen of talent

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Speaker 1: from various places to this region, and for a number

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Speaker 1: of reasons, including the tax free lifestyle, including the benefit

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Speaker 1: of being able to trade across many regions, the quality

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Speaker 1: of life, among others.

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Speaker 3: Yeah, so that's what's drawing those star traders to want

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Speaker 3: to live there in terms of where they're coming from

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Speaker 3: London seeing the biggest exodus. Are those traders being pushed

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Speaker 3: out of the UK are just being drawn to some

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Speaker 3: of those things you talk about in the UAE.

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Speaker 1: Yes, definitely being drawn to some of these things. London,

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Speaker 1: as you mentioned, yes, is the city that has by

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Speaker 1: far lost the biggest number of jobs to the UAE.

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Speaker 1: You're seeing Indian nationals especially drawn to the area to

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Speaker 1: be closer to home. The flight is quite short. But

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Speaker 1: the other big factor is the taxes. The UK tax

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Speaker 1: is being quite onerous. If you're making millions or tens

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Speaker 1: of millions of dollars and getting to benefit from that

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Speaker 1: tax free lifestyle here has been a pretty significant draw

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Speaker 1: The other thing that we keep hearing about is safety.

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Speaker 1: The climb in the UK has people say has been

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Speaker 1: a factor for their decision making to move out here

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Speaker 1: as well.

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Speaker 2: Okay, what do you think the shift to the UAE

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Speaker 2: means for the hedgehound industry more broadly itself?

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Speaker 1: What I think it shows is we are amidst this

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Speaker 1: hot war for talent, you know, pay packages arising and

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Speaker 1: hedge fund managers and portfolio managers have a lot more say.

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Speaker 1: And part of the reason we have all of these

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Speaker 1: hubs and they're in the area here is because the

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Speaker 1: pms and the talent is requesting it. One firm nearly

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Speaker 1: lost out on retaining one of the employees because they

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Speaker 1: wanted to move here, and because of that one employee,

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Speaker 1: they set up an outpost here. And you're seeing the

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Speaker 1: voice and the power of hedge fund talent really being

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Speaker 1: the impetus to move out here, which shows that it's

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Speaker 1: not just being able to demand high pay packages, it's

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Speaker 1: also demanding where you live.

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