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

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Speaker 2: This is the Blueberg DBAK podcast. Good morning, It's Wednesday,

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Speaker 2: the seventh of January. I'm Caroline Hepkea in London and

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Speaker 2: I'm Stephen Caroline Brussels. Coming up today, The White House

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Speaker 2: says Donald Trump isn't ruling out using military force to

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Speaker 2: acquire Greenland. The US President claims Venezuela will send America

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Speaker 2: up to fifty million barrels of oil.

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Speaker 3: Plus trying to prevent last orders. British pubs push for

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Speaker 3: tax discounts as the sector warns many risk going out

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Speaker 3: of business.

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Speaker 4: Let's start with a round up of our top stories.

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Speaker 3: The White House says President Trump will not rule out

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Speaker 3: the use of military force to acquire Greenland. In a statement,

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Speaker 3: Press Secretary Caroline Levitt said a number of possibilities are

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Speaker 3: being discussed and that quote utilizing the US military is

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Speaker 3: always an option at the Commander in Chief's disposal. The

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Speaker 3: comments are sure to escalate tens with Denmark and other

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Speaker 3: European countries. European leaders issued their own statement yesterday, warning

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Speaker 3: that Trump needs to respect the territorial integrity of Greenland

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Speaker 3: and work collectively on Arctic security. Greenland's Prime Minister Jans

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Speaker 3: Frederick Nielsen says there's no basis for a takeover.

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Speaker 5: Well, even we are a country that is democratic and

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Speaker 5: has been democratic for many, many years, and if we

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Speaker 5: look at the whole picture, I can understand that some

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Speaker 5: people are concerned. The situation is not that the United

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Speaker 5: States can simply conquer Greenland.

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Speaker 3: Yes, Frederick Nielsen, speaking there via translator. As the Wall

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Speaker 3: Street Journal report of the US Secretary of State Marco

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Speaker 3: Rubio downplayed military action in a briefing with American lawmakers,

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Speaker 3: instead signaling that the goal was to buy the island

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Speaker 3: from Denmark.

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Speaker 2: Venezuela will send as much as fifty million barrels of

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Speaker 2: oil to the United States. According to President Trump, I

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Speaker 2: can't market prices that would be worth roughly two point

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Speaker 2: eight billion dollars. Writing on social media, Trump said he

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Speaker 2: would control the proceeds from the sale of the crude

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Speaker 2: oil to ensure it is used to benefit the people

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Speaker 2: of Venezuela and the US. The announcement comes as the

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Speaker 2: White House seeks to extend its economic influence in Venezuela

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Speaker 2: following the capture of leader Nicholas Maduro. US House Speaker

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Speaker 2: Mike Johnson spoke to reporters following a meeting with President Trump.

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Speaker 6: This is not a regime change. This is a demand

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Speaker 6: for change of behavior by a regime. The interim government

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Speaker 6: is stood up now and we are hopeful that they

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Speaker 6: will be able to correct their action. They cannot participate

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Speaker 6: with Narco terrorist.

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Speaker 2: US House Speaker Mike Johnson, speaking there as, ABC reports

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Speaker 2: that the US has told Venezuela's interim leader DLCI Rodriguez

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Speaker 2: to exclusively partner with them on oil production and favor

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Speaker 2: America when selling heavy crude.

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Speaker 3: Franz and the UK have pledged to send troops to

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Speaker 3: Ukraine and the event of a peace deal with Russia.

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Speaker 3: The commitment to a so called Reassurance Horse came at

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Speaker 3: a meeting in Paris yesterday with the Coalition of the Willing,

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Speaker 3: which included US officials as well as European, Canadian and

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Speaker 3: other leaders. UK Prime Minister Kiir Starmer says the agreement

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Speaker 3: marks a crucial breakthrough.

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Speaker 7: This is a vital part of our ironcast commitment to

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Speaker 7: stand with Ukraine for the long term. It paved the

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Speaker 7: way for the legal framework under which British, French and

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Speaker 7: partner forces could operate on Ukrainian soil.

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Speaker 3: British Prime Minister kre Starmer, speaking in Paris after talks

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Speaker 3: which saw the Trump administration move towards an agreement on

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Speaker 3: security guarantees, usnvoy Steve Whitcoff said leaders had largely finished

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Speaker 3: security protocols during the gathering and vowed US backed initiatives

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Speaker 3: would defend Ukraine from future attacks. According to European officials,

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Speaker 3: it's now up to Russia to decide when it's ready

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Speaker 3: to negotiate.

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Speaker 2: Tensions between China and Japan continue to escalate over the

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Speaker 2: issue of Taiwan. On Tuesday, China's Ministry of Commerce said

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Speaker 2: that all items with military as well as commercial uses

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Speaker 2: were banned from being sent to Japan if they could

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Speaker 2: enhance the country's military capabilities. Officials in Tokyo have now

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Speaker 2: issued a formal protest against China's trading curbs, which threatened

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Speaker 2: more than forty percent of Chinese exports to Japan, estimated

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Speaker 2: to be worth over sixty eight billion dollars. The dispute

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Speaker 2: originally springs from remarks by Japan's Prime Minister Sanai Techichi

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Speaker 2: about Taiwan in early November twenty twenty five.

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Speaker 3: One Hundreds of flights have been canceled in Europe as

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Speaker 3: heavy snowfall disrupts travel and power networks. Airports in Paris

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Speaker 3: and Amsterdam are running reduced services today so staff can

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Speaker 3: clear snow from runways. Demand for power has also soared

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Speaker 3: as temperatures fell as low as minus twenty two degrees

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Speaker 3: celsius in parts of France, its most severe cold snap

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Speaker 3: since twenty twelve. At least five people are reported to

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Speaker 3: have died in weather related incidents in the country. The

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Speaker 3: cold weather is forecast to continue across much of western

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Speaker 3: Europe this week.

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Speaker 2: UK pubs are pushing for last minute tax discounts as

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Speaker 2: they warn of an existential threat to their industry. Bloomberg

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Speaker 2: has learned that the UK Treasury held talks with the

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Speaker 2: British Beer and Pub Association after Landlord started banning labour

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Speaker 2: MPs from their businesses.

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Speaker 4: Bloomberg's James Worcock has.

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Speaker 8: More pints are political in Britain. Labor MPs like Tom

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Speaker 8: Hayes have been dismayed to find out they have recently

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Speaker 8: been banned from many local pubs. My job has just

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Speaker 8: got a million times harder because I can't go and

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Speaker 8: bang the drum for businesses with the Chancellor if I

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Speaker 8: can't speak with business owners because they're banning me from

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Speaker 8: doing so. The venues are running a grassroots campaign as

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Speaker 8: they face the end of pandemic here as subsidies and

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Speaker 8: higher tax bills. Lobby Group UK Hospitality says the typical

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Speaker 8: pub will see an increased in business rates of seventy

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Speaker 8: six percent over the next two years. The government says

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Speaker 8: a transition payment will help support companies, but the ongoing

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Speaker 8: fight over higher taxes is yet another political hangover for

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Speaker 8: the government in London. James Wilcock, Bloomberg Radio and.

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Speaker 4: Those are our top stories this morning.

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Speaker 1: Now.

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Speaker 2: The record breaking global stock rally is losing momentum today.

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Speaker 4: In Asia.

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Speaker 2: The MSCI All Country World Index was at a record

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Speaker 2: yesterday record high, but it's down a tenth of one

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Speaker 2: percent this morning. The European stock six hundred also here

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Speaker 2: fresh record high yesterday. Memory chip stocks in the US

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Speaker 2: surge after comments from Nvidia, sand Disk, Western Digital, Seagate

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Speaker 2: Oil is down today breakthrough below sixty dollars a barrel

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Speaker 2: are currently down nine tenths of one percent. Gold and

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Speaker 2: silver sliding Treasury yields at four sixteen Gold and Sachs

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Speaker 2: seeing a twenty percent jump for the MSCI China Index

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Speaker 2: by the end of this year. So an interesting longer

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Speaker 2: perspective on markets too.

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Speaker 3: In a moment, we'll bring you the latest on the

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Speaker 3: US comments on Greenland, plus the prospect of Venezuela sending

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Speaker 3: oil worth billions of dollars to America. But it is

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Speaker 3: that time we have to take out your crazy inventions

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Speaker 3: bingo cards because it's the Consumer Electronics show in Las Vegas.

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Speaker 3: Remember the hype of the folding laundry robots last year.

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Speaker 3: My clothes are still creased, Caroline, But fear not, hoover

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Speaker 3: is coming that can hoover your stairs. This is a

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Speaker 3: new version of robot vacuum cleaners from the Chinese company Roboock,

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Speaker 3: unveiling a model that has legs that can work around

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Speaker 3: steps and uneven surfaces, can clear downward slopes as well

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Speaker 3: in the demonstrations that were done yesterday. Now it sounds great,

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Speaker 3: but our reporter in Las Vegas, don a woman, also

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Speaker 3: reminds us that last year the same company showed off

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Speaker 3: a different kind of robot vacuum. They had a mechanical

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Speaker 3: arm to pick up stray socks. The reality, though, didn't

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Speaker 3: turn out to be so great. It costs, first of all,

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Speaker 3: nearly twenty six hundred dollars to buy, and secondly wasn't

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Speaker 3: great at distinguishing things that weren't socks while moving around

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Speaker 3: the house either. I presented some other practical difficulties. Now, look,

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Speaker 3: that's not to say that this couldn't be a very

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Speaker 3: helpful development for some people. I did watch a video

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Speaker 3: of this. It moves very slowly as well. You wouldn't

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Speaker 3: want to be in a hurry to have your stairs cleaned.

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Speaker 2: No, Look, the gadgets could be amazing, right, I would

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Speaker 2: love one of these my very own Johnny number five.

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Speaker 2: But making that leap from kind of static white goods

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Speaker 2: to ones that move is obviously immensely complex, and not

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Speaker 2: just for the technology, but I think also for the

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Speaker 2: adaptation of users. Maybe I just do think moving technology

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Speaker 2: in your home is going to be a big leap,

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Speaker 2: isn't it?

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Speaker 4: Yeah, certainly.

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Speaker 3: I mean, I note that my laundry remains unfolded, so

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Speaker 3: you know, well, I'll let you know when one of

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Speaker 3: these robots actually arrive in my house. But it's a

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Speaker 3: very great time, of course, to be checking in on

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Speaker 3: where those developments are full coverage of the Consumer Electronics

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Speaker 3: Show across Bloomberg and we'll put a link to that

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Speaker 3: story in our podcast show notes.

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Speaker 2: Well, that's bring you more now on President Donald Trump's

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Speaker 2: plans for Greenland. After the White House refuse to rule

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Speaker 2: out using military force to acquire the Arctic island, Washington

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Speaker 2: d C editor John Harney joins us now for more. John,

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Speaker 2: how seriously is the Trump administration considering military action over Greenland?

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Speaker 1: That we're talking about this at all indicates that it

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Speaker 1: is certainly far more serious than we would have imagined

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Speaker 1: even a year ago. Now, this notion of acquiring Greenland

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Speaker 1: began in the first Trump administration and then sort of

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Speaker 1: faded away, but it's acquired new urgency after the spectacular

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Speaker 1: United States encouragion into Venezuela over the weekend in which

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Speaker 1: President Nicholas Maduro was seized and brought brought the United

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Speaker 1: States to face criminal charges. And the other thing is

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Speaker 1: that far as military action, Caroline Levitt, with the White

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Speaker 1: House Press Secretary, said it couldn't be ruled out entirely,

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Speaker 1: but then Secretary State Marco Rubio said that the Trump

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Speaker 1: administration would try to buy Greenland but in either case,

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Speaker 1: they're certainly not letting go of this. No that the

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Speaker 1: United States wants this territory.

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Speaker 3: So the Danish government wants a meeting with the US

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Speaker 3: to talk about this issue. Can diplomacy help to diffuse this?

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Speaker 3: We know that Donald Trump has stated the aim of

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Speaker 3: wanting to acquire or buy Greenland for many years.

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Speaker 1: Now, that's right, I mean, diplomacy always has the potential

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Speaker 1: to avoid confrontation the threat of confrontation, and we'll see

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Speaker 1: how that goes. But again, both sides seem to have

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Speaker 1: taken pretty strong positions to this point, in United States

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Speaker 1: saying we need Greenland for national security purposes, the Danish

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Speaker 1: government saying that this is our territory has been for

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Speaker 1: you know, for a very long time, and the Europeans,

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Speaker 1: the European Union, NATO countries expressing some alarm over this.

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Speaker 2: I'm also trying to undercot the idea that it's necessary,

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Speaker 2: you know, talking about having to work together for Arctic security,

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Speaker 2: which is also the reason that Greenland so stratetisic parly important.

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Speaker 4: Does it?

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Speaker 2: Does the issue though, also risk the work when it

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Speaker 2: comes to the Ukraine peace process that was also taking

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Speaker 2: place yesterday.

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Speaker 1: Well, First of all, Marco Rubio, the Secretary of State,

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Speaker 1: did not go to this this summit because of the

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Speaker 1: what happened. What happened in Venezuela. But the new museums

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Speaker 1: or whatever you want to call them about Greenland overshadowed

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Speaker 1: this event in which Britain, France, and in Germany and

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Speaker 1: other allies of Ukraine tried to forge an agreement on

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Speaker 1: what would come after and he ceased fire with Russia

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Speaker 1: and with the United States involvement. But if this acrimony

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Speaker 1: between the United States in Denmark becomes more serious, well

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Speaker 1: that could call into question the future of the entire

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Speaker 1: NATO alliance, which has been in place since the end

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Speaker 1: of the Second World War.

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Speaker 3: Okay, John, thanks very much our Washington DC editor John

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Speaker 3: Harney there.

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Speaker 8: With us.

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Speaker 3: More from Bloomberg Daybreak Europe coming up after this.

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Speaker 2: Now Crudell prices have dropped off to President Trump said

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Speaker 2: that Venezuela would hand over millions of bows of crude

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Speaker 2: all to the United States. Joining us now to discuss

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Speaker 2: is Stephen Stopchinski, who leads our energy coverage in Asia. Stephen,

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Speaker 2: President Trump seizing Venezuelan or what do we know about

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Speaker 2: the action?

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Speaker 4: So far.

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Speaker 9: I'm not sure if I would call it seizing per se.

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Speaker 9: He says, it's an agreement where there will be some

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Speaker 9: sort of profit sharing. But surely it's Trump capitalizing on

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Speaker 9: the current situation and a government that likely wants to

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Speaker 9: sort of give an olive branch to the Trump administration

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Speaker 9: figure out a way forward. Now, fifty million barrels, While

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Speaker 9: that might seem like a lot, if you actually look

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Speaker 9: at the production of Venezuela, they produce, what hand one

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Speaker 9: thousand barrels per day. That's like fifty to sixty days

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Speaker 9: of production, and it's unclear if that's going to be

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Speaker 9: you know, all the production coming forward. You know, Trump

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Speaker 9: said sanctioned oil, and so for example, Chevron produces oil

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Speaker 9: and Venezuela that's not sanctioned. I don't think that this

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Speaker 9: is that's included. I think he's talking about just the

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Speaker 9: stuff that's that the US sees is going out on

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Speaker 9: shadow flue vessels. Maybe he's maybe some of that oil

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Speaker 9: will come from what's on floating storage, basically what's already

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Speaker 9: at sea that will be routed.

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Speaker 8: To the US.

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Speaker 9: It will be sold to international markets. Maybe, but there's

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Speaker 9: a lot of questions. But certainly this I think would

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Speaker 9: be a geopolitical win for both sides. Right, Trump is

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Speaker 9: able to say, hey, I got some oil and it's

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Speaker 9: paying you know, it's helping to pay for this, while

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Speaker 9: Venezuela can say, hey, we had a breakthrough with the

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Speaker 9: Trump administration.

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Speaker 3: We did see shares and Chevron jumping yesterday though, and

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Speaker 3: this question of prize and Trump wanting to use the

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Speaker 3: oil may just to rebuild the oil sector in Venezuela.

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Speaker 3: I mean, how difficult or how feasible is that?

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Speaker 9: Yeah, I mean, so the fifty million barrels is kind

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Speaker 9: of small, short term stuff, you know. The longer term

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Speaker 9: prize is being able to capture some of the three

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Speaker 9: one hundred billion barrels of oil potential. That's what Venezuela says,

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Speaker 9: that the reserves are at with it underground, and whether

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Speaker 9: the US can come in and kind of take advantage

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Speaker 9: or start boosting production there. Now, there are a lot

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Speaker 9: of questions, right if your Chevron, Xon or another US

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Speaker 9: oil major, the big question is why would I want

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Speaker 9: to go there when there's this geopolitical risk hanging over

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Speaker 9: my head? Are we sure that the Trump administration of

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Speaker 9: the current government in Venezuela are really going to get

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Speaker 9: along and will my long term investment really pay off,

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Speaker 9: because when you talk to analysts, you know, to get

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Speaker 9: to where Venezuelan production was at the early two thousands,

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Speaker 9: three million barrels per day, you need to invest basically

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Speaker 9: ten billion dollars a year over a decade. That's a

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Speaker 9: lot of money. So and also with oil prices rent

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Speaker 9: kind of in the high fifty dollars low sixty dollars

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Speaker 9: range right now, it's not really a great time to

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Speaker 9: be investing in new supply. So you need essentially the

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Speaker 9: Trump administration to subsidize it. And Trump has basically kind

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Speaker 9: of said that it's unclear exactly how he will subsidize it.

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Speaker 9: There's other media reporting that he'll be meeting with executives

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Speaker 9: from Chevron ax on Another's later this week. But I

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Speaker 9: think that is going to really come down to if

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Speaker 9: the US is going to basically pay these companies that

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Speaker 9: go and avail as well, will that be enough to

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Speaker 9: get them at the table to really put riggs on

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Speaker 9: the ground and send more crew there.

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