1
00:00:04,840 --> 00:00:05,280
Speaker 1: Good morning.

2
00:00:05,320 --> 00:00:07,640
Speaker 2: It's Thursday, the twenty first of December here in London.

3
00:00:07,720 --> 00:00:11,239
Speaker 2: This is the Bloomberg Daybreak podcast. I'm Caroline Hepkip. Coming

4
00:00:11,320 --> 00:00:14,880
Speaker 2: up today. The UK and Switzerland will sign a financial

5
00:00:14,960 --> 00:00:17,720
Speaker 2: trade deal later but can it really be called a

6
00:00:17,840 --> 00:00:22,279
Speaker 2: Brexit dividend? Yemen's who these say they'll launch more attacks

7
00:00:22,280 --> 00:00:26,080
Speaker 2: as allies way up military action against the rebel group,

8
00:00:26,720 --> 00:00:30,160
Speaker 2: and as allies call on aid commitments to Ukraine, companies

9
00:00:30,200 --> 00:00:33,440
Speaker 2: say that they're stepping in as the country's plan b

10
00:00:34,080 --> 00:00:36,800
Speaker 2: Let's start with a roundup of our top stories. The

11
00:00:36,920 --> 00:00:41,040
Speaker 2: UK and Switzerland will sign a financial services trade deal

12
00:00:41,159 --> 00:00:44,839
Speaker 2: later today. Europe's two largest financial hubs are expected to

13
00:00:44,920 --> 00:00:49,479
Speaker 2: agree on insurance, banking and asset management. Bloomberg's Ewan Pots

14
00:00:49,479 --> 00:00:50,199
Speaker 2: has the story.

15
00:00:50,720 --> 00:00:53,800
Speaker 1: Bloomberg understands that Chancellor Jeremy Hunt will fly to Burn

16
00:00:53,880 --> 00:00:56,280
Speaker 1: this morning to sign a trade deal with Switzerland, the

17
00:00:56,320 --> 00:00:59,520
Speaker 1: world's biggest center for offshore wealth. But the key question

18
00:00:59,600 --> 00:01:02,160
Speaker 1: is whether this trade deal, the details are yet to come,

19
00:01:02,480 --> 00:01:05,679
Speaker 1: is better than the equivalence arrangement that the EU has

20
00:01:05,720 --> 00:01:09,160
Speaker 1: with the Swiss. The new Burn financial Services agreement has

21
00:01:09,160 --> 00:01:12,240
Speaker 1: been three years in the making. The Treasury says trade

22
00:01:12,240 --> 00:01:15,280
Speaker 1: in financial and insurance services with Switzerland was worth three

23
00:01:15,280 --> 00:01:18,120
Speaker 1: point three billion pounds last year. The hope will be

24
00:01:18,120 --> 00:01:21,080
Speaker 1: that number gets a boost from today's deal in London,

25
00:01:21,200 --> 00:01:22,440
Speaker 1: unpots Bloomberg Radio.

26
00:01:23,600 --> 00:01:27,600
Speaker 2: Yemen's Hoothy rebels say that they will continue targeting ships

27
00:01:27,640 --> 00:01:30,160
Speaker 2: in the Red Sea, despite US moves to build an

28
00:01:30,160 --> 00:01:34,040
Speaker 2: international naval task force to protect trade in the region.

29
00:01:34,400 --> 00:01:37,120
Speaker 2: The Iran backed group also warned that it's willing to

30
00:01:37,160 --> 00:01:42,920
Speaker 2: retaliate if the US attacks Hoofy bases, signaling possible further escalation.

31
00:01:43,440 --> 00:01:47,199
Speaker 2: Senior White House Advisor for Energy and Investment Amos Hochstein

32
00:01:47,600 --> 00:01:51,280
Speaker 2: says that the by the administration is focused on defensive action.

33
00:01:51,720 --> 00:01:54,440
Speaker 3: The United States has joined now in a coalition of

34
00:01:54,600 --> 00:01:59,559
Speaker 3: approximately ten countries already in making sure that there are patrols, surveillance,

35
00:01:59,600 --> 00:02:03,840
Speaker 3: patrol of aircraft and ships, and to take defensive measures

36
00:02:03,880 --> 00:02:08,640
Speaker 3: if needed. We continue to have other conversations with allies

37
00:02:09,240 --> 00:02:11,640
Speaker 3: to ensure that we have a coalition. And reason for

38
00:02:11,720 --> 00:02:14,640
Speaker 3: that is because this is not a US concern, this

39
00:02:14,720 --> 00:02:16,680
Speaker 3: is a global markets concern.

40
00:02:17,919 --> 00:02:21,040
Speaker 2: Amos Hochstein there spoke to Bloomberg after the US and

41
00:02:21,200 --> 00:02:25,000
Speaker 2: UK navies shot down fifteen drones launched from who the

42
00:02:25,080 --> 00:02:28,560
Speaker 2: controlled areas of Yemen over the weekend. The rebel groups

43
00:02:28,560 --> 00:02:31,679
Speaker 2: say that they're targeting ships connected to Israel to protest

44
00:02:31,680 --> 00:02:36,120
Speaker 2: against its military campaign in Gaza. However, shipping firms are

45
00:02:36,160 --> 00:02:39,160
Speaker 2: concerned that all vessels are now vulnerable, with the tax

46
00:02:39,240 --> 00:02:45,119
Speaker 2: becoming increasingly random. EU finance chiefs have agreed on new

47
00:02:45,200 --> 00:02:48,360
Speaker 2: rules which define the block's ability to invest in key

48
00:02:48,440 --> 00:02:52,600
Speaker 2: sectors such as defense. The package requires the twenty seven

49
00:02:52,639 --> 00:02:56,120
Speaker 2: EU nations to bring their debt down to sixty percent

50
00:02:56,160 --> 00:03:00,560
Speaker 2: of GDP, but it offers long term flexibility in how

51
00:03:00,600 --> 00:03:05,000
Speaker 2: they do that. But European Commission Vice President Valdis Dombroskis

52
00:03:05,000 --> 00:03:09,480
Speaker 2: notes that the rules still need to be ratified before January.

53
00:03:09,280 --> 00:03:13,560
Speaker 4: As a snowdown to rules if the EU's new physical rules.

54
00:03:13,200 --> 00:03:16,760
Speaker 3: Are to be put in place before this for the

55
00:03:16,840 --> 00:03:19,000
Speaker 3: next year's European elections.

56
00:03:21,040 --> 00:03:24,120
Speaker 2: The close to the wideal that don Brovskis helped to

57
00:03:24,240 --> 00:03:28,000
Speaker 2: broker took months of wrangling. Member states have had major

58
00:03:28,040 --> 00:03:31,679
Speaker 2: disagreements about balancing the books after a pandemic boom in

59
00:03:31,760 --> 00:03:37,560
Speaker 2: government spending took boring far beyond their agreed limits. A

60
00:03:37,680 --> 00:03:42,160
Speaker 2: Wall Street firm is leaving the shrinking distressed debt trading market.

61
00:03:42,240 --> 00:03:45,480
Speaker 2: The choice comes as executives plan to overhaul the business

62
00:03:45,720 --> 00:03:49,000
Speaker 2: in a bid to grow profits. More on that story

63
00:03:49,040 --> 00:03:50,960
Speaker 2: now from Bloomberg's Charlie Pellett.

64
00:03:51,360 --> 00:03:54,400
Speaker 5: It is part of its latest retrenchment in City Group's

65
00:03:54,400 --> 00:03:58,040
Speaker 5: effort to reshape the firm in pursuit of higher returns.

66
00:03:58,400 --> 00:04:01,640
Speaker 5: According to people briefed on the decision, the move comes

67
00:04:01,640 --> 00:04:06,440
Speaker 5: as City Group undergoes a strategic overhaul under CEO Jane Fraser.

68
00:04:06,960 --> 00:04:09,960
Speaker 5: The decision to exit the business will remove one of

69
00:04:09,960 --> 00:04:13,960
Speaker 5: the key players in distressed debt markets, and follows a

70
00:04:14,040 --> 00:04:16,680
Speaker 5: recent decision by the bank to also get out of

71
00:04:16,760 --> 00:04:20,520
Speaker 5: municipal bond trading and underwriting in New York. Charlie Pellet

72
00:04:20,520 --> 00:04:21,480
Speaker 5: Bloomberg Radio.

73
00:04:22,520 --> 00:04:26,680
Speaker 2: Shares in Micron jumped postmarket on a strong revenue forecast,

74
00:04:26,800 --> 00:04:31,320
Speaker 2: indicating solid data center demands. The largest US maker, Memory Chips,

75
00:04:31,440 --> 00:04:33,919
Speaker 2: says that second quarter revenue will come in ahead of

76
00:04:33,960 --> 00:04:37,200
Speaker 2: analyst estimates between five point one and five point five

77
00:04:37,240 --> 00:04:41,720
Speaker 2: billion dollars. Bloombag's Ian King says that Micron boss Sanjay

78
00:04:41,800 --> 00:04:44,840
Speaker 2: Mehrotra wants to make it clear that the firm is

79
00:04:44,920 --> 00:04:48,239
Speaker 2: now through the worst of an industry wide slump.

80
00:04:48,600 --> 00:04:51,800
Speaker 6: Certainly the message that the CEO wants to get across

81
00:04:52,560 --> 00:04:55,279
Speaker 6: a certain type of data center demand and that's related

82
00:04:55,320 --> 00:04:59,680
Speaker 6: to AI, these big in video based systems, that we

83
00:04:59,720 --> 00:05:02,600
Speaker 6: need a lot of memory. That's great and that's very profitable,

84
00:05:02,640 --> 00:05:05,560
Speaker 6: and they're in facts sold out of that. And what

85
00:05:05,640 --> 00:05:08,960
Speaker 6: he also said was, look, you know, smartphones, PCs. We're

86
00:05:09,000 --> 00:05:13,400
Speaker 6: not talking about huge expansions here, but at least things

87
00:05:13,560 --> 00:05:16,680
Speaker 6: are getting better after a couple of really brutal years

88
00:05:16,839 --> 00:05:17,400
Speaker 6: Ian King.

89
00:05:17,440 --> 00:05:21,520
Speaker 2: They're reflecting on the outlook from the Micron CEO, Sanja Mehrotra,

90
00:05:21,720 --> 00:05:25,400
Speaker 2: who used the investicle to repeat his prediction that twenty

91
00:05:25,480 --> 00:05:29,400
Speaker 2: twenty four will be a rebound year for the industry. Now,

92
00:05:29,520 --> 00:05:33,400
Speaker 2: Warner Brothers Discovery is in talks to merge with Paramount Global.

93
00:05:33,440 --> 00:05:36,640
Speaker 2: The deal would combine the two biggest media companies in

94
00:05:36,680 --> 00:05:40,400
Speaker 2: the world and put HBO and CBS under one roof,

95
00:05:40,680 --> 00:05:43,880
Speaker 2: According to reports from Axios, The CEOs from both companies

96
00:05:43,920 --> 00:05:46,880
Speaker 2: met on Tuesday to discuss the move. Bloomberg's Paul Sweeeney

97
00:05:46,920 --> 00:05:50,039
Speaker 2: says that industry players are looking for expansion in a

98
00:05:50,080 --> 00:05:52,279
Speaker 2: bid to keep up with streamers.

99
00:05:52,600 --> 00:05:54,880
Speaker 4: The logic behind a lot of these media executives today

100
00:05:54,920 --> 00:05:57,560
Speaker 4: is I can't get too big here. There's not a

101
00:05:57,600 --> 00:06:00,960
Speaker 4: scenario where I don't need more skill. Again, my competitors

102
00:06:00,960 --> 00:06:04,160
Speaker 4: are Netflix and some of the big technology companies. Disney's

103
00:06:04,160 --> 00:06:05,960
Speaker 4: probably in a good spot there. That's what most people

104
00:06:06,000 --> 00:06:09,000
Speaker 4: feel like, but everybody else has to really think about

105
00:06:09,120 --> 00:06:12,640
Speaker 4: what to do. And David Zaslov is a gal.

106
00:06:12,560 --> 00:06:16,320
Speaker 2: Maker Bloomberg's Paul Sweeney speaking there about the potential deal,

107
00:06:16,360 --> 00:06:20,359
Speaker 2: which would likely face scrutiny from federal regulators. Paramount is

108
00:06:20,360 --> 00:06:22,520
Speaker 2: also said to be in talks to sell the TV

109
00:06:22,640 --> 00:06:26,440
Speaker 2: channel BET to a management led investor group for just

110
00:06:26,600 --> 00:06:29,640
Speaker 2: under two billion US dollars. Those are a few of

111
00:06:29,640 --> 00:06:32,039
Speaker 2: today's top stories for you on the markets, then, The

112
00:06:32,120 --> 00:06:35,440
Speaker 2: SSCI Asia Pacific Index is currently down by four tenths

113
00:06:35,480 --> 00:06:38,760
Speaker 2: of one percent, stop features for Europe sinking half of

114
00:06:38,800 --> 00:06:41,080
Speaker 2: one percent, s and p FR found eveny futures up

115
00:06:41,080 --> 00:06:44,920
Speaker 2: four tenths TENNY US treasury yields trading higher two basis

116
00:06:44,920 --> 00:06:48,960
Speaker 2: points at three eighty seven. Now, in just stay moment,

117
00:06:49,080 --> 00:06:51,520
Speaker 2: we are going to be speaking to Bloomberg's consumer goods

118
00:06:51,520 --> 00:06:55,640
Speaker 2: reporter Dasher Afa nasievia who has a special report out

119
00:06:55,640 --> 00:06:59,520
Speaker 2: this morning on Ukraine and what individual businesses are trying

120
00:06:59,520 --> 00:07:04,000
Speaker 2: to do in terms of the war effort in Ukraine

121
00:07:04,440 --> 00:07:10,440
Speaker 2: as countries increasingly are perhaps stuck on how much investment

122
00:07:10,520 --> 00:07:14,040
Speaker 2: and how much a military aid to hand over to Ukraine.

123
00:07:14,080 --> 00:07:15,800
Speaker 2: So that story coming up in just a moment. But

124
00:07:15,880 --> 00:07:18,440
Speaker 2: this also caught my eye on the Bluebeg terminal. We've

125
00:07:18,440 --> 00:07:22,120
Speaker 2: talked so much, haven't we about artificial intelligence this year AI. Well,

126
00:07:22,120 --> 00:07:25,880
Speaker 2: there's been a Supreme Court decision that is really quite fascinating.

127
00:07:25,920 --> 00:07:30,320
Speaker 2: In the UK. They have said no AI programs cannot

128
00:07:30,320 --> 00:07:33,720
Speaker 2: be named as inventors for the purposes of patents. It's

129
00:07:33,800 --> 00:07:37,760
Speaker 2: quite crucial ruling, I'm told, and it came about because

130
00:07:37,840 --> 00:07:41,200
Speaker 2: of Imagination Engines and the founder their Stephen Thaler, who

131
00:07:41,280 --> 00:07:45,200
Speaker 2: wanted to have his AI machine actually stated as the

132
00:07:45,280 --> 00:07:48,760
Speaker 2: inventor on a couple of patents for a container for

133
00:07:48,920 --> 00:07:52,600
Speaker 2: a flashing light. But the judge in this court case

134
00:07:52,640 --> 00:07:56,320
Speaker 2: has said no, AI isn't a natural person, so you

135
00:07:56,600 --> 00:07:59,920
Speaker 2: can't be named as the sort of patent holder coons

136
00:08:00,080 --> 00:08:03,280
Speaker 2: sense christ some but a thorn in the side perhaps

137
00:08:03,280 --> 00:08:06,559
Speaker 2: of the UK's ambitions to take a pioneering role in AI.

138
00:08:06,720 --> 00:08:10,560
Speaker 2: According to the critics. They say though, that because there

139
00:08:10,560 --> 00:08:13,520
Speaker 2: are so many AI advances, this issue could actually return.

140
00:08:13,920 --> 00:08:17,960
Speaker 2: Whether or not AI bots can be named as inventors anyway,

141
00:08:18,040 --> 00:08:19,880
Speaker 2: nice little read on the Boomberg terminal. If you have

142
00:08:19,920 --> 00:08:22,320
Speaker 2: the time this morning, Let's send our attention though, to

143
00:08:22,360 --> 00:08:25,440
Speaker 2: the UK and Switzerland now which we'll sign an agreement

144
00:08:25,720 --> 00:08:30,160
Speaker 2: around financial services, a post brexit accord to deepen ties

145
00:08:30,200 --> 00:08:33,559
Speaker 2: between their respective financial centers, and the chances of Jeremy

146
00:08:33,600 --> 00:08:36,560
Speaker 2: Hunt will visit Burn to sign that deal, according to

147
00:08:36,559 --> 00:08:38,760
Speaker 2: people familiar with the matter, joining me now for always

148
00:08:38,760 --> 00:08:42,600
Speaker 2: are UK correspondent Lizzie Burden. Come on in, Lizzy, what's

149
00:08:42,600 --> 00:08:44,920
Speaker 2: actually in this deal? How much benefit do we think

150
00:08:44,960 --> 00:08:45,679
Speaker 2: it could bring?

151
00:08:45,960 --> 00:08:49,080
Speaker 7: Well, Caroline, this is part of the post Brexit project

152
00:08:49,200 --> 00:08:52,280
Speaker 7: of negotiating trade deals around the world independently of the

153
00:08:52,280 --> 00:08:55,480
Speaker 7: European Union. You'll remember earlier this year the UK struck

154
00:08:55,480 --> 00:08:59,280
Speaker 7: that deal to join CPTPP, that Indo Pacific trade block.

155
00:08:59,600 --> 00:09:02,439
Speaker 7: And this particular deal has been in the work since

156
00:09:02,520 --> 00:09:06,840
Speaker 7: Rishi Sunac was chancellor in twenty twenty. And how significant

157
00:09:06,880 --> 00:09:10,120
Speaker 7: is it? Well, these are Europe's two biggest financial hubs

158
00:09:10,160 --> 00:09:13,360
Speaker 7: and it's all about the mutual recognition of each side's

159
00:09:13,440 --> 00:09:19,360
Speaker 7: regulatory regimes, easing access for financial services from insurance to

160
00:09:19,520 --> 00:09:23,040
Speaker 7: banking to asset management. But Caroline, let's be clear, all

161
00:09:23,120 --> 00:09:26,080
Speaker 7: the trade deals in the world would only scratch the

162
00:09:26,120 --> 00:09:29,760
Speaker 7: surface of the economic damage of Brexit. The independent fiscal watchdog,

163
00:09:29,800 --> 00:09:33,520
Speaker 7: the Office for Budget Responsibility, estimates that around four percent

164
00:09:33,600 --> 00:09:36,400
Speaker 7: of output in the UK is lost because of Brexit,

165
00:09:36,840 --> 00:09:40,800
Speaker 7: given that the EU is and was Britain's biggest trading partner,

166
00:09:40,840 --> 00:09:44,640
Speaker 7: and the city that this deal benefits has been particularly

167
00:09:44,720 --> 00:09:47,000
Speaker 7: hit because it was left out of that post Brexit

168
00:09:47,040 --> 00:09:50,160
Speaker 7: trade deal with the EU in twenty twenty one. And

169
00:09:50,200 --> 00:09:53,680
Speaker 7: the fact is London based firms have had to move

170
00:09:53,720 --> 00:09:57,040
Speaker 7: billions of dollars out of assets and thousands of jobs

171
00:09:57,280 --> 00:09:58,920
Speaker 7: to just keep working in the bloc.

172
00:09:59,120 --> 00:09:59,400
Speaker 6: Yeah.

173
00:09:59,440 --> 00:10:02,040
Speaker 2: Absolutely, so it's really catch up. But what do we

174
00:10:02,080 --> 00:10:05,240
Speaker 2: know about these negotiations. I mean, they've been ongoing for

175
00:10:05,280 --> 00:10:07,280
Speaker 2: a little while, but this has just kind of popped up.

176
00:10:07,320 --> 00:10:10,760
Speaker 2: I feel like right before Christmas we're getting lots of

177
00:10:10,800 --> 00:10:12,360
Speaker 2: government government announcements.

178
00:10:12,440 --> 00:10:15,719
Speaker 7: No, it's a Christmas surprise from Jeremy hunt here. As

179
00:10:15,760 --> 00:10:17,880
Speaker 7: you say, he's expected to go to bern to sign

180
00:10:17,960 --> 00:10:22,320
Speaker 7: the agreement this morning, and the Treasury says it's only

181
00:10:22,360 --> 00:10:26,520
Speaker 7: possible because London is free of the shackles of Brussels.

182
00:10:26,760 --> 00:10:30,040
Speaker 7: How true is that? Well, financial services are an area

183
00:10:30,120 --> 00:10:33,800
Speaker 7: that the UK actually has regulatory heft. So when you

184
00:10:33,800 --> 00:10:36,600
Speaker 7: speak to trade experts they say, yes, it could be

185
00:10:36,600 --> 00:10:39,600
Speaker 7: better than what Brussels could agree on Britain's behalf in

186
00:10:39,640 --> 00:10:43,520
Speaker 7: other words, this equivalence framework within the EU. And actually

187
00:10:43,520 --> 00:10:46,760
Speaker 7: it does pave the way to upgrades for financial services

188
00:10:46,760 --> 00:10:50,400
Speaker 7: cooperation and maybe a more comprehensive trade deal after that.

189
00:10:50,640 --> 00:10:54,920
Speaker 7: So it's a good thing that there's less trade friction always.

190
00:10:55,440 --> 00:10:58,360
Speaker 2: Yeah, no, absolutely, and so we'll watch then the signing

191
00:10:58,400 --> 00:11:02,160
Speaker 2: of that deal today. Expectation of course closely. Thank you

192
00:11:02,240 --> 00:11:04,080
Speaker 2: so much Lizzie for being in the studio with me

193
00:11:04,120 --> 00:11:06,640
Speaker 2: this morning. Our UK correspondent Lizzie Burden on that UK

194
00:11:06,760 --> 00:11:14,199
Speaker 2: Switzerland agreement on financial services today. Now, after Russia invaded Ukraine,

195
00:11:14,520 --> 00:11:18,160
Speaker 2: a Deni Pro based consumer goods company set to work

196
00:11:18,360 --> 00:11:21,600
Speaker 2: developing a wet wipe suitable for soldiers in the trenches.

197
00:11:21,679 --> 00:11:25,280
Speaker 2: The result a khaki green envelope that's designed not to

198
00:11:25,559 --> 00:11:27,600
Speaker 2: rustle and that can be used for the whole body.

199
00:11:27,640 --> 00:11:34,040
Speaker 2: The company's patriotic pivot emblematic of how various companies, makers

200
00:11:34,040 --> 00:11:38,679
Speaker 2: of products from food to security alarms, all sorts of items,

201
00:11:39,080 --> 00:11:43,000
Speaker 2: have been trying to ensure their survival and also contributing

202
00:11:43,040 --> 00:11:45,600
Speaker 2: to the war effort. Now, this is the subject of

203
00:11:45,640 --> 00:11:49,200
Speaker 2: a deep dive piece that Dasher Affarnasieva has been writing

204
00:11:49,200 --> 00:11:52,320
Speaker 2: Bloomberg's Consumer Goods Reporter, and she's in the studio with

205
00:11:52,480 --> 00:11:54,280
Speaker 2: me this morning to tell us a bit about this.

206
00:11:54,720 --> 00:11:57,160
Speaker 2: Very good to have you on the program. And this

207
00:11:57,240 --> 00:12:00,800
Speaker 2: is about economic resilience, isn't it for Ukraine. You've been speaking,

208
00:12:00,960 --> 00:12:04,240
Speaker 2: You've been speaking to Ukrainian business people. What are the

209
00:12:04,320 --> 00:12:08,200
Speaker 2: ways in which they have had to radically adapt to

210
00:12:08,280 --> 00:12:09,960
Speaker 2: the warding.

211
00:12:10,320 --> 00:12:12,599
Speaker 8: Yes, well, we speak to a few businesses, most of

212
00:12:12,640 --> 00:12:15,240
Speaker 8: them consumer and what's happened for a lot of them

213
00:12:15,360 --> 00:12:18,960
Speaker 8: is that they suffered a massive fall in revenues. That's

214
00:12:19,040 --> 00:12:22,560
Speaker 8: often come from either because they've stopped exporting to Russia

215
00:12:22,679 --> 00:12:26,640
Speaker 8: and or Belarus, or because they make products like nappies

216
00:12:26,760 --> 00:12:31,360
Speaker 8: or infant formula that when six million women and children

217
00:12:31,440 --> 00:12:36,160
Speaker 8: left the country their demand and what they've done is

218
00:12:36,200 --> 00:12:40,680
Speaker 8: they've actually hard to find new export markets to They've

219
00:12:40,679 --> 00:12:43,680
Speaker 8: had to also move their production facilities from areas of

220
00:12:43,720 --> 00:12:48,280
Speaker 8: fighting into the West, and they've designed new products like

221
00:12:48,320 --> 00:12:49,880
Speaker 8: the one in the introduction.

222
00:12:50,120 --> 00:12:52,640
Speaker 2: Yeah. Absolutely, and all of this, of course admits the

223
00:12:52,679 --> 00:12:57,400
Speaker 2: backdrop that is the concern on the Ukrainian part around funding,

224
00:12:57,440 --> 00:13:01,280
Speaker 2: around both financing but also military coming from the US

225
00:13:01,320 --> 00:13:05,720
Speaker 2: and the EU and how much we detect a change

226
00:13:05,760 --> 00:13:08,040
Speaker 2: in the outlook there. So that is the pressure also

227
00:13:08,080 --> 00:13:09,439
Speaker 2: on business leaders.

228
00:13:09,520 --> 00:13:11,720
Speaker 8: Absolutely, and in that sense a lot of them have

229
00:13:11,800 --> 00:13:15,319
Speaker 8: found this new new sense of purpose that you know

230
00:13:15,440 --> 00:13:18,920
Speaker 8: is also motivating stuff because of course the tax receipts

231
00:13:19,880 --> 00:13:24,840
Speaker 8: and the export revenue that's all supporting the Ukraine economy

232
00:13:25,000 --> 00:13:29,480
Speaker 8: and giving Ukraine a better chance against Russia. And I

233
00:13:29,520 --> 00:13:34,400
Speaker 8: think that they appreciate that Ukrainian businessmen appreciate that this

234
00:13:34,520 --> 00:13:36,640
Speaker 8: is going to be a long conflict and that they

235
00:13:36,640 --> 00:13:39,280
Speaker 8: have to step up and be sustainable. And there's a

236
00:13:39,320 --> 00:13:42,640
Speaker 8: limited degree degree to which you know, they can. They

237
00:13:42,640 --> 00:13:45,440
Speaker 8: can depend on anybody externally, as we can see with

238
00:13:45,559 --> 00:13:50,200
Speaker 8: the deliberations in both the Europe and the US.

239
00:13:51,600 --> 00:13:55,200
Speaker 2: It's in some senses quite surprising that amidst such a

240
00:13:55,360 --> 00:13:58,559
Speaker 2: terrible and widespread war there is so much business and

241
00:13:58,840 --> 00:14:01,719
Speaker 2: efforts to keep business going in Ukraine.

242
00:14:02,240 --> 00:14:05,360
Speaker 8: Yeah, I mean GDP is really bounce back, and these

243
00:14:05,360 --> 00:14:08,320
Speaker 8: companies that we speak to, they're investing, they're taking a risk,

244
00:14:08,440 --> 00:14:13,200
Speaker 8: because I think that it's really an existential question either

245
00:14:13,240 --> 00:14:17,440
Speaker 8: we keep going or we just stop. And the businesses

246
00:14:17,440 --> 00:14:20,520
Speaker 8: we speak to are choosing to keep going and taking

247
00:14:20,800 --> 00:14:21,840
Speaker 8: these kinds of risks.

248
00:14:22,080 --> 00:14:25,480
Speaker 2: Yeah, in terms of your reporting, what else do you think,

249
00:14:25,760 --> 00:14:28,160
Speaker 2: you know, you're having those conversations I think must be

250
00:14:28,240 --> 00:14:30,720
Speaker 2: very revealing with those individuals who are carrying out that

251
00:14:30,800 --> 00:14:33,760
Speaker 2: business in Ukraine. What else did you take away from

252
00:14:33,840 --> 00:14:34,560
Speaker 2: those tools?

253
00:14:35,160 --> 00:14:37,240
Speaker 8: Yeah, I mean I think for me what struck me

254
00:14:37,360 --> 00:14:41,520
Speaker 8: is sort of the attitude, the positive attitude in the

255
00:14:41,560 --> 00:14:46,680
Speaker 8: context where people have been so affected by the conflict,

256
00:14:46,760 --> 00:14:50,600
Speaker 8: and it's obviously about life and death. You know, everybody's

257
00:14:50,600 --> 00:14:55,080
Speaker 8: got people who are either serving or have even died,

258
00:14:55,280 --> 00:14:57,600
Speaker 8: And I think what struck me is that sort of

259
00:14:57,640 --> 00:15:03,400
Speaker 8: positivity and that resilience you know, in that context and

260
00:15:03,440 --> 00:15:07,000
Speaker 8: that life and death context, and that sense of responsibility

261
00:15:07,480 --> 00:15:12,440
Speaker 8: towards both all of the people in Ukraine consumers to

262
00:15:12,520 --> 00:15:15,480
Speaker 8: the government, and this commitment to survival.

263
00:15:15,240 --> 00:15:18,760
Speaker 2: Yes, absolutely survival, and and there's even as I say,

264
00:15:18,800 --> 00:15:22,360
Speaker 2: admit it's a very immensely difficult situation. There's still a

265
00:15:22,440 --> 00:15:26,600
Speaker 2: lot of hope and optimism and discussion about how Ukraine

266
00:15:26,640 --> 00:15:29,080
Speaker 2: is going to be rebuilt afterwards, and so these business

267
00:15:29,080 --> 00:15:31,400
Speaker 2: people must be thinking about that too, how to remain

268
00:15:31,440 --> 00:15:33,520
Speaker 2: in business, you know, for the day that the war

269
00:15:33,560 --> 00:15:34,280
Speaker 2: actually ends.

270
00:15:34,600 --> 00:15:36,960
Speaker 8: There's a lot of planning in that sense, and a

271
00:15:36,960 --> 00:15:39,880
Speaker 8: lot of sense of akay, we've lost our factories. To

272
00:15:40,200 --> 00:15:43,000
Speaker 8: somebody I spoke to, you know, a who wasn't actually

273
00:15:43,000 --> 00:15:47,200
Speaker 8: in the piece, but a ketchup producer, they'd lost their

274
00:15:47,200 --> 00:15:52,320
Speaker 8: factories in the occupied territory, factory factoring in the occupied territory,

275
00:15:52,440 --> 00:15:57,040
Speaker 8: and they've relocated production to kind of other parties that

276
00:15:57,080 --> 00:15:59,960
Speaker 8: are making the ketchup et cetera for them. They're ramping

277
00:16:00,160 --> 00:16:03,280
Speaker 8: all of their product's mainais. And he's already talking about how,

278
00:16:03,480 --> 00:16:06,000
Speaker 8: you know, when we rebuild, we're going to have more AI,

279
00:16:06,680 --> 00:16:09,920
Speaker 8: We're going to have more automation in our factories. So

280
00:16:09,600 --> 00:16:11,640
Speaker 8: that's that is quite inspiring.

281
00:16:11,640 --> 00:16:11,920
Speaker 6: Really.

282
00:16:13,160 --> 00:16:15,880
Speaker 9: This is Bloomberg Daybreak Europe, your morning brief on the

283
00:16:15,960 --> 00:16:19,000
Speaker 9: stories making news from London to Wall Street and beyond.

284
00:16:19,280 --> 00:16:23,240
Speaker 2: Look for us on your podcast feed every morning on Apple, Spotify,

285
00:16:23,360 --> 00:16:25,280
Speaker 2: and anywhere else you get your podcasts.

286
00:16:25,360 --> 00:16:28,360
Speaker 9: You can also listen live each morning on London DAB Radio,

287
00:16:28,400 --> 00:16:31,119
Speaker 9: the Bloomberg Business app, and Bloomberg dot Com.

288
00:16:31,160 --> 00:16:33,920
Speaker 2: Our flagship New York station, is also available on your

289
00:16:33,960 --> 00:16:38,680
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

290
00:16:38,920 --> 00:16:41,560
Speaker 9: I'm Caroline Hepka and I'm Stephen Carroll. Join us again

291
00:16:41,600 --> 00:16:44,160
Speaker 9: tomorrow morning for all the news you need to start

292
00:16:44,200 --> 00:16:50,840
Speaker 9: your day right here on Bloomberg Daybreak Europe