WEBVTT - Sweden Set To Join NATO; Congress Tees off on Controversial Golf Merger

0:00:02.480 --> 0:00:03.040
<v Speaker 1>Good morning.

0:00:03.080 --> 0:00:05.920
<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

0:00:05.960 --> 0:00:07.440
<v Speaker 2>stories we're following today.

0:00:08.039 --> 0:00:10.600
<v Speaker 3>We begin with a major development at the NATO summit

0:00:10.640 --> 0:00:14.840
<v Speaker 3>in Lithuania. Turkey has dropped its objections to Sweden joining

0:00:14.840 --> 0:00:18.640
<v Speaker 3>the Alliance. NATO's Secretary General Young Stoltenberg says Turkey will

0:00:18.640 --> 0:00:22.160
<v Speaker 3>ask its lawmakers to approve Sweden's membership as soon as possible.

0:00:22.600 --> 0:00:27.320
<v Speaker 4>Completing Sweden's accession to NATO is an historic step that

0:00:27.400 --> 0:00:32.360
<v Speaker 4>benefits the security of NATO alas at this critical time,

0:00:33.240 --> 0:00:35.760
<v Speaker 4>it makes us all stronger unsafer.

0:00:35.840 --> 0:00:39.400
<v Speaker 2>NATO's Jen Stoltenberg says he can't give exact dates for

0:00:39.520 --> 0:00:42.839
<v Speaker 2>Sweden's admission to the Alliance. Bloomberg's Maria Todao is in

0:00:42.840 --> 0:00:46.159
<v Speaker 2>Lithuania and says it should be a relatively quick process.

0:00:46.400 --> 0:00:48.839
<v Speaker 5>When I spoke to the Swedish FOREI minister last week,

0:00:48.840 --> 0:00:50.400
<v Speaker 5>we said, as soon as we get the go ahead

0:00:50.560 --> 0:00:54.240
<v Speaker 5>from both parliaments, we will deposit our documents and then

0:00:54.440 --> 0:00:56.240
<v Speaker 5>it's up to go. We want to see our flags

0:00:56.440 --> 0:00:58.800
<v Speaker 5>at the NATA headquarters by the end of the month,

0:00:58.960 --> 0:01:01.560
<v Speaker 5>so this is a timeline today. Obviously, yesterday you should

0:01:01.560 --> 0:01:04.679
<v Speaker 5>have seen the smile on the Swedish Prime minister his faith.

0:01:05.080 --> 0:01:08.160
<v Speaker 5>A lot of reliefs, certainly for this country. There really

0:01:08.200 --> 0:01:11.200
<v Speaker 5>felt there was a risk of being stuck in Noman's land,

0:01:11.280 --> 0:01:13.320
<v Speaker 5>but obviously we know now that is not the case.

0:01:13.600 --> 0:01:16.360
<v Speaker 2>And Bloomberg's Maria today our reports Hungary is now the

0:01:16.400 --> 0:01:19.920
<v Speaker 2>only NATO member yet to approve Sweden's bid. They're expected

0:01:19.959 --> 0:01:21.320
<v Speaker 2>to do so in the coming days.

0:01:21.600 --> 0:01:24.560
<v Speaker 3>President Biden's weighing in on the historic agreement. Karen He

0:01:24.680 --> 0:01:27.600
<v Speaker 3>spoke from the NATO summit this morning, the first.

0:01:27.360 --> 0:01:31.280
<v Speaker 6>Time that NATO leaders will meet with thirty one together

0:01:31.360 --> 0:01:34.679
<v Speaker 6>and looking forward to a meeting very soon with thirty

0:01:34.720 --> 0:01:37.400
<v Speaker 6>two members with their edition of Sweden.

0:01:37.520 --> 0:01:40.640
<v Speaker 3>The President Biden plans to meet with Turkey's president later today.

0:01:40.640 --> 0:01:43.319
<v Speaker 3>They are likely to discuss a sale of F sixteen

0:01:43.440 --> 0:01:44.720
<v Speaker 3>fighter jets to the nation.

0:01:45.200 --> 0:01:48.320
<v Speaker 2>Well, another major story we're following this morning, Nathan assented

0:01:48.360 --> 0:01:51.000
<v Speaker 2>hearing focused on the proposed merger between the Live Golf

0:01:51.040 --> 0:01:54.080
<v Speaker 2>and the PGA. The hearing gets underway today on Capitol Hill,

0:01:54.120 --> 0:01:56.960
<v Speaker 2>and Bloomberg's Amy Morris as a preview from our ninety

0:01:57.000 --> 0:01:58.520
<v Speaker 2>nine to one newsroom in Washington.

0:01:58.800 --> 0:02:01.960
<v Speaker 7>Members of the Senate per minute Subcommittee on Investigations want

0:02:01.960 --> 0:02:03.720
<v Speaker 7>to know what the merger would mean for the sport

0:02:03.920 --> 0:02:07.840
<v Speaker 7>in Saudi Arabia's influence within the US. Sources tell Bloomberg

0:02:07.840 --> 0:02:10.880
<v Speaker 7>that officials plan to assure lawmakers that the PGA has

0:02:11.000 --> 0:02:14.280
<v Speaker 7>non negotiable terms in the deal giving it control of

0:02:14.320 --> 0:02:17.800
<v Speaker 7>the combined entity, allowing the PGA to drive the future

0:02:17.800 --> 0:02:20.359
<v Speaker 7>of the pro golf business. The two sides haven't even

0:02:20.400 --> 0:02:23.160
<v Speaker 7>agreed to financial terms yet, and they still need approval

0:02:23.160 --> 0:02:26.120
<v Speaker 7>from regulators. But what lawmakers really want to know is

0:02:26.200 --> 0:02:29.320
<v Speaker 7>what led to this sudden decision to merge after months

0:02:29.320 --> 0:02:33.120
<v Speaker 7>of acrimony in Washington, I Mammy Morris Bloomberg Daybreak.

0:02:32.760 --> 0:02:34.919
<v Speaker 3>Thanks Amy. The PGA Live Golf deal has drawn a

0:02:34.960 --> 0:02:37.920
<v Speaker 3>lot of scrutiny across the country, and today families of

0:02:38.040 --> 0:02:40.680
<v Speaker 3>nine to eleven victims plan to appear at that hearing.

0:02:40.720 --> 0:02:43.160
<v Speaker 3>We get that part of the story from Bloomberg's at Baxter.

0:02:43.560 --> 0:02:46.840
<v Speaker 8>The family's long support of the PGA's effort against Live

0:02:46.919 --> 0:02:50.560
<v Speaker 8>from raiding its players and feel betrayed now by the merger.

0:02:50.880 --> 0:02:54.200
<v Speaker 8>Senator Richard Blumenthal says they don't think the PGA should

0:02:54.240 --> 0:02:56.000
<v Speaker 8>be doing business with Saudi Arabia.

0:02:56.080 --> 0:02:57.880
<v Speaker 9>Many of the nine to eleven families told me that

0:02:58.160 --> 0:03:03.680
<v Speaker 9>they are seeking justice, simple justice conparents from WABA, which

0:03:03.680 --> 0:03:06.520
<v Speaker 9>has resisted that effort at every turn.

0:03:06.919 --> 0:03:10.240
<v Speaker 8>Bloomenthal says the families believe the PGA is essential to

0:03:10.280 --> 0:03:14.200
<v Speaker 8>American culture and economy and should be preserved as an

0:03:14.200 --> 0:03:19.040
<v Speaker 8>American institution. In San Francisco, I met Baxter Bloomberg day break.

0:03:19.160 --> 0:03:20.760
<v Speaker 2>All right, ed, thank you, But we also have new

0:03:20.760 --> 0:03:24.519
<v Speaker 2>developments this morning in the classified documents case against Donald Trump.

0:03:24.560 --> 0:03:27.440
<v Speaker 2>The former president has asked a federal judge in Florida

0:03:27.520 --> 0:03:31.000
<v Speaker 2>to postpone setting a trial date. Trump is objecting to

0:03:31.080 --> 0:03:33.880
<v Speaker 2>plans to set a date this year, signaling he might

0:03:33.960 --> 0:03:36.720
<v Speaker 2>want to delay it until after the presidential election on

0:03:36.840 --> 0:03:39.760
<v Speaker 2>August fourteenth. Trial date was initially set by the judge

0:03:39.760 --> 0:03:40.240
<v Speaker 2>in the case.

0:03:40.440 --> 0:03:42.360
<v Speaker 3>Let's turn it back to the markets now, Karen More.

0:03:42.360 --> 0:03:45.160
<v Speaker 3>Fed officials are coming out in favor of additional rate

0:03:45.240 --> 0:03:48.880
<v Speaker 3>hikes this year. San Francisco FED president Mary Daily says

0:03:48.920 --> 0:03:51.520
<v Speaker 3>the risks of doing too little outweigh those of doing

0:03:51.560 --> 0:03:52.080
<v Speaker 3>too much.

0:03:52.400 --> 0:03:54.640
<v Speaker 2>We're likely to need a couple more rate hikes over

0:03:54.640 --> 0:03:57.760
<v Speaker 2>the course of this year to really bring inflation back

0:03:57.800 --> 0:03:59.000
<v Speaker 2>into a path.

0:03:59.080 --> 0:04:01.600
<v Speaker 10>That's a long sustainable two percent path, and.

0:04:01.680 --> 0:04:04.080
<v Speaker 3>That sentiment from Mary Daily was echoed by FED Vice

0:04:04.160 --> 0:04:07.640
<v Speaker 3>Chair for Supervision Michael Barr and Cleveland FED chief Loretta Master.

0:04:07.800 --> 0:04:10.280
<v Speaker 3>Markets are currently pricing in a rate hike this month,

0:04:10.600 --> 0:04:12.680
<v Speaker 3>followed by rate cuts starting in March.

0:04:13.080 --> 0:04:16.240
<v Speaker 2>Well big banks may soon face higher capital requirements from

0:04:16.320 --> 0:04:20.119
<v Speaker 2>US officials. The fed's top banking regulator, Michael Barr, says

0:04:20.400 --> 0:04:23.520
<v Speaker 2>he wants banks to start using a standardized approach for

0:04:23.680 --> 0:04:27.360
<v Speaker 2>estimating credit, operational and trading risks rather than relying on

0:04:27.400 --> 0:04:30.919
<v Speaker 2>their own estimates. Barr says the Fed's annual stressed should

0:04:30.920 --> 0:04:35.000
<v Speaker 2>be rejiggered to better capture dangers that firms can face.

0:04:35.400 --> 0:04:39.120
<v Speaker 3>Corporate news and consumer news really Amazon's Prime Day kicks

0:04:39.120 --> 0:04:41.599
<v Speaker 3>off today, but will it really make a difference for

0:04:41.640 --> 0:04:44.240
<v Speaker 3>the company? New data show e commerce is not the

0:04:44.320 --> 0:04:46.880
<v Speaker 3>driving force it used to be for the stock. Bloomberg's

0:04:46.880 --> 0:04:48.400
<v Speaker 3>Lisa Matteo has the story.

0:04:48.560 --> 0:04:51.520
<v Speaker 10>In the past four years, Amazon stock has fallen in

0:04:51.560 --> 0:04:54.520
<v Speaker 10>the week of the two day sales event. Analysta JP

0:04:54.640 --> 0:04:58.320
<v Speaker 10>Morgan say Prime Day could generate about five billion dollars

0:04:58.320 --> 0:05:02.200
<v Speaker 10>of incremental revenue this year, a thirteen percent from last year,

0:05:02.520 --> 0:05:05.200
<v Speaker 10>but the pace of growth has slowed steadily each year

0:05:05.279 --> 0:05:08.560
<v Speaker 10>since a thirty percent increase in twenty twenty. Investor focus

0:05:08.600 --> 0:05:12.000
<v Speaker 10>has now shifted to the company's faster growing and profitable

0:05:12.080 --> 0:05:16.600
<v Speaker 10>cloud computing unit In New York. Lisa Mateo Bloomberg Daybreak.

0:05:16.240 --> 0:05:18.960
<v Speaker 2>Ry Lisa, thank you well. Amazon founder Jeff Bezos is

0:05:18.960 --> 0:05:22.160
<v Speaker 2>one of the corporate heavyweights appearing at Allen and Company's

0:05:22.160 --> 0:05:26.080
<v Speaker 2>annual conference in Sun Valley, Idaho, this week. Disney's Bob

0:05:26.120 --> 0:05:31.080
<v Speaker 2>Iger open AI CEO Sam Altman and Microsoft CEO Sandanadella

0:05:31.440 --> 0:05:34.120
<v Speaker 2>are also expected to attend. The summit is typically a

0:05:34.160 --> 0:05:36.560
<v Speaker 2>hotbed for handshake mergers, but it could take on a

0:05:36.560 --> 0:05:39.000
<v Speaker 2>different tone this year against the backdrop of M and

0:05:39.040 --> 0:05:41.680
<v Speaker 2>A activity. This is Bloomberg.

0:05:45.320 --> 0:05:46.640
<v Speaker 3>Time now to take a look at some of the

0:05:46.640 --> 0:05:48.920
<v Speaker 3>other stories making news in New York and around the world,

0:05:48.960 --> 0:05:51.800
<v Speaker 3>and for that we're joined by Bloomberg's Michael bar Good morning, Michael.

0:05:51.520 --> 0:05:54.880
<v Speaker 11>Good morning, Nathan. The cleanup begins from the dangerous flooding

0:05:54.960 --> 0:05:58.400
<v Speaker 11>from the severe rainstorms that fell in New York's Hudson

0:05:58.480 --> 0:06:01.880
<v Speaker 11>Valley over the weekend. Off to one woman dead. Orange

0:06:01.880 --> 0:06:05.080
<v Speaker 11>County executive Steve Newhouse says in just a few hours,

0:06:05.200 --> 0:06:08.720
<v Speaker 11>nine inches of rain fell, swelling the Highland Brook to

0:06:08.760 --> 0:06:12.400
<v Speaker 11>the point that it overwhelmed the tiny communities along its banks.

0:06:12.680 --> 0:06:16.360
<v Speaker 2>We're transitioning into a recovery stage.

0:06:16.480 --> 0:06:17.360
<v Speaker 9>We're trying to.

0:06:17.400 --> 0:06:21.239
<v Speaker 2>Help everybody that has flooded out houses, open up roads,

0:06:21.400 --> 0:06:22.520
<v Speaker 2>work with the utilities.

0:06:23.040 --> 0:06:25.919
<v Speaker 11>As for today, the Tri State area will deal with

0:06:25.960 --> 0:06:30.000
<v Speaker 11>the heat. Bloomberg meeting religious Rob Carolyn. It has the latest, Michael.

0:06:30.040 --> 0:06:31.800
<v Speaker 12>High pressure is going to be building across the Tri

0:06:31.920 --> 0:06:33.920
<v Speaker 12>State area in the wake of the system that produced

0:06:33.920 --> 0:06:36.960
<v Speaker 12>the heavy rain late in the weekend. That high pressure

0:06:37.000 --> 0:06:39.599
<v Speaker 12>system building in has some very warm air associated with it,

0:06:39.640 --> 0:06:42.080
<v Speaker 12>and temperatures across the Tri State area look very warm,

0:06:42.120 --> 0:06:45.039
<v Speaker 12>particularly over the next seventy two hours. We'll see afternoon

0:06:45.120 --> 0:06:48.520
<v Speaker 12>heights near ninety today, ninety to ninety five tomorrow, and

0:06:48.560 --> 0:06:51.839
<v Speaker 12>then back up again around ninety on Thursday. The Friday

0:06:51.880 --> 0:06:53.880
<v Speaker 12>and Saturday look a little cooler due to the fact

0:06:53.880 --> 0:06:55.400
<v Speaker 12>that once again we're going to be dealing with some

0:06:55.440 --> 0:06:58.279
<v Speaker 12>showers and thunderstorms. And he continues to build in the

0:06:58.320 --> 0:06:59.880
<v Speaker 12>Southwest as well. Michael.

0:07:00.320 --> 0:07:04.400
<v Speaker 11>Thanks Rob speaking about that, Triple digit temperatures are expected

0:07:04.440 --> 0:07:06.520
<v Speaker 11>in parts of the South for several more days. And

0:07:06.600 --> 0:07:10.520
<v Speaker 11>what could become the longest heat wave on record. El Paso,

0:07:10.640 --> 0:07:14.560
<v Speaker 11>Texas has seen twenty five consecutive days of one hundred

0:07:14.560 --> 0:07:18.560
<v Speaker 11>plus degrees. In Florida, it's not just high air temperatures.

0:07:18.920 --> 0:07:21.880
<v Speaker 11>An ocean heat wave is pushing water temperatures in the

0:07:21.880 --> 0:07:25.520
<v Speaker 11>Gulf of Mexico into the mid nineties. The hunt goes

0:07:25.560 --> 0:07:30.000
<v Speaker 11>on for Michael Burham, an escapee from a northwestern Pennsylvania jail,

0:07:30.080 --> 0:07:35.520
<v Speaker 11>since last Thursday. State Police spokesman Lieutenant Colonel George bivins.

0:07:35.120 --> 0:07:38.120
<v Speaker 13>There are currently an excess of fifteen federal, state, and

0:07:38.160 --> 0:07:43.040
<v Speaker 13>local agencies actively participating in the manhunt. The United States

0:07:43.040 --> 0:07:46.920
<v Speaker 13>Marshall Service has added significant resources to ensure that regardless

0:07:46.920 --> 0:07:49.600
<v Speaker 13>of where Burham may try to run, he will be

0:07:49.640 --> 0:07:52.000
<v Speaker 13>pursued by the full force of law enforcement.

0:07:52.520 --> 0:07:56.560
<v Speaker 11>Police say they have discovered small campsites near Warren, Pennsylvania,

0:07:56.600 --> 0:08:00.680
<v Speaker 11>possibly associated with the thirty four year old ESCAPEEEA said

0:08:00.720 --> 0:08:04.240
<v Speaker 11>it's scrambled warplanes to ward off a US byplane in

0:08:04.280 --> 0:08:08.320
<v Speaker 11>its exclusive economic zone. The sister of leader Kim John

0:08:08.360 --> 0:08:11.160
<v Speaker 11>Noon said early today and that the US aircraft retreated

0:08:11.640 --> 0:08:14.000
<v Speaker 11>Global News twenty four hours a day, powered by more

0:08:14.040 --> 0:08:17.400
<v Speaker 11>than twenty seven hundred journalists nanalyst in over one hundred

0:08:17.400 --> 0:08:20.400
<v Speaker 11>and twenty countries. Michae Lebarr. This is Bloomberg, Nathan.

0:08:20.480 --> 0:08:21.120
<v Speaker 1>Thank you, Michael.

0:08:25.800 --> 0:08:28.520
<v Speaker 3>Time now for the Bloomberg Sports Update with John Stanshawer.

0:08:28.560 --> 0:08:30.920
<v Speaker 14>All right, Nathan. The American League has been dominant in

0:08:30.960 --> 0:08:33.080
<v Speaker 14>the MLB All Star Game in the past decade, as

0:08:33.120 --> 0:08:35.440
<v Speaker 14>in lost since twenty twelve. See what happens tonight in

0:08:35.559 --> 0:08:38.360
<v Speaker 14>Seat all the Yankees. Garrett Cole will start for the

0:08:38.400 --> 0:08:39.160
<v Speaker 14>American League.

0:08:39.320 --> 0:08:42.640
<v Speaker 15>Some of my fondest memories growing up, one of them

0:08:42.679 --> 0:08:47.040
<v Speaker 15>is watching Pedro in the All Star Game starting it.

0:08:45.440 --> 0:08:50.160
<v Speaker 15>And I've been to a few of them, and you know,

0:08:50.200 --> 0:08:52.800
<v Speaker 15>had the pleasure of watching some future Hall of famers

0:08:52.840 --> 0:08:55.880
<v Speaker 15>to it, and I've always been like, man, I really

0:08:56.240 --> 0:08:57.400
<v Speaker 15>really hope I could do that one day.

0:08:57.480 --> 0:09:00.960
<v Speaker 14>Leannel going with Arizona, Zach Gallon, Andive. The Mets are

0:09:00.960 --> 0:09:03.720
<v Speaker 14>represented by code Is Sanga and Pete Alonzo, who was

0:09:03.760 --> 0:09:06.240
<v Speaker 14>in last night's home run Derby, but like last year,

0:09:06.280 --> 0:09:10.520
<v Speaker 14>Alonzo lost to Seattle's Julio Rodriguez, who electrified the home

0:09:10.559 --> 0:09:13.520
<v Speaker 14>crowd with a forty one home run outburst in the

0:09:13.600 --> 0:09:15.760
<v Speaker 14>first round, but then he lost in the semis a

0:09:15.840 --> 0:09:19.520
<v Speaker 14>Toronto's Vladivier Guerrero Junior, who then held off Tampa Bay's

0:09:19.559 --> 0:09:22.520
<v Speaker 14>Randia rose Arena in the final twenty five twenty three,

0:09:22.559 --> 0:09:25.280
<v Speaker 14>so Vlad Junior wins the event that was won by

0:09:25.320 --> 0:09:28.040
<v Speaker 14>his father. In two thousand and seven, Yankees had their

0:09:28.080 --> 0:09:30.720
<v Speaker 14>new hitting coach at Sean Casey, a career three hundred

0:09:30.800 --> 0:09:34.040
<v Speaker 14>hitter himself. He was a Cincinnati Reds teammate of Aaron Boom.

0:09:34.080 --> 0:09:36.800
<v Speaker 14>There had been conflicting reports about what had really happened

0:09:36.840 --> 0:09:40.240
<v Speaker 14>with the Northwestern football team in terms of hazing. After

0:09:40.280 --> 0:09:43.520
<v Speaker 14>an investigation, the original penalty to longtime coach Pat Fitzgerald

0:09:43.520 --> 0:09:45.840
<v Speaker 14>was just a two game suspension. Last night that was changed.

0:09:46.080 --> 0:09:48.839
<v Speaker 14>Fitzgerald was fired. He was the coach for seventeen years.

0:09:49.160 --> 0:09:52.720
<v Speaker 14>Chris Eubanks, the six foot seven inch hard serving Atlanta native,

0:09:52.760 --> 0:09:55.360
<v Speaker 14>has come out of nowhere to reach the Wimbledon quarterfinals.

0:09:55.360 --> 0:09:58.000
<v Speaker 14>He had never before qualified to play the event. He

0:09:58.080 --> 0:10:00.840
<v Speaker 14>beat the fifth seeds to finals hits up five saith

0:10:00.960 --> 0:10:05.200
<v Speaker 14>Carlos alcaraz One in four the quarterfinals. Beginning today, John

0:10:05.240 --> 0:10:07.640
<v Speaker 14>stash Thatwer Bloomberg sports.

0:10:09.320 --> 0:10:11.920
<v Speaker 8>From coast to coast, from New York to San.

0:10:11.720 --> 0:10:14.520
<v Speaker 11>Francisco, Boston to Washington, DC.

0:10:14.720 --> 0:10:18.640
<v Speaker 8>Nationwide on Syria's Exam, the Bloomberg Business app and Bloomberg

0:10:18.679 --> 0:10:21.520
<v Speaker 8>dot Com. This is Bloomberg Daybreak.

0:10:22.760 --> 0:10:23.320
<v Speaker 11>Good morning.

0:10:23.400 --> 0:10:26.280
<v Speaker 3>I'm Nathan Hager. The NATO Leader Summit is just getting

0:10:26.360 --> 0:10:29.800
<v Speaker 3>underway in Lithuania and already there has been a major development.

0:10:29.880 --> 0:10:32.839
<v Speaker 3>Sweden is a step closer to joining the Alliance now

0:10:32.840 --> 0:10:35.800
<v Speaker 3>the Turkey has dropped its objections that had held up

0:10:35.840 --> 0:10:39.079
<v Speaker 3>the bid for months. Bloomberg's Maria TODAYO is covering the

0:10:39.120 --> 0:10:42.120
<v Speaker 3>summit in Vilnius and Maria joins me. Now this really

0:10:42.160 --> 0:10:44.040
<v Speaker 3>came about seemingly at the last minute.

0:10:44.080 --> 0:10:46.560
<v Speaker 16>Maria absolutely, and it was not clear at all that

0:10:46.600 --> 0:10:50.080
<v Speaker 16>it would get fixed. The situation at the major summit.

0:10:50.200 --> 0:10:53.400
<v Speaker 16>At one point it almost seems that person and Erdawan

0:10:53.480 --> 0:10:57.400
<v Speaker 16>of Turkey had made a connection between yet to Sweden

0:10:57.559 --> 0:11:00.280
<v Speaker 16>joining me to but then of course a commerce station

0:11:00.520 --> 0:11:03.679
<v Speaker 16>at the same time about Turkey and the European Union.

0:11:03.720 --> 0:11:07.239
<v Speaker 16>This is a debate that has racked on four years,

0:11:07.280 --> 0:11:10.600
<v Speaker 16>and the European Commission making it clearer to that they

0:11:10.600 --> 0:11:12.920
<v Speaker 16>were not connected and that one should not have an

0:11:12.920 --> 0:11:16.360
<v Speaker 16>impact on the other. That was dropped yesterday by the

0:11:16.400 --> 0:11:18.840
<v Speaker 16>Turkish president. At the end of the night, there was

0:11:18.880 --> 0:11:21.679
<v Speaker 16>a bilateral mean time between the two delegations. It was

0:11:21.760 --> 0:11:24.560
<v Speaker 16>moderated by the Nature Secretary General, and that is the

0:11:24.600 --> 0:11:27.800
<v Speaker 16>magic of diplomacy. But also the meetings and the conversations

0:11:27.800 --> 0:11:31.280
<v Speaker 16>that happened behind closed doors. President eard One no longer

0:11:31.280 --> 0:11:34.480
<v Speaker 16>connecting his gests to the European Union and also dropping

0:11:34.559 --> 0:11:39.240
<v Speaker 16>the veto instructing now the Turkish parliament to ratify Sweden

0:11:39.320 --> 0:11:42.880
<v Speaker 16>into Nijor, and that is incredibly important because without that

0:11:42.920 --> 0:11:45.960
<v Speaker 16>political signal from Erdawan, the country could have stayed in

0:11:46.000 --> 0:11:48.840
<v Speaker 16>the waitings for many, many, many months, and that was

0:11:48.920 --> 0:11:52.080
<v Speaker 16>very problematic for Sweden. They believed it was becoming a

0:11:52.200 --> 0:11:55.720
<v Speaker 16>national security issue. Now we also see the trickle down

0:11:55.720 --> 0:11:59.600
<v Speaker 16>effects because the Hungarians, who are yet to ratify this

0:11:59.720 --> 0:12:02.719
<v Speaker 16>memory ship bid, have also said, you know what, we

0:12:02.760 --> 0:12:04.839
<v Speaker 16>will also say yes to Sweden. This is now a

0:12:04.880 --> 0:12:07.360
<v Speaker 16>technicality and it is very likely now that this is

0:12:07.360 --> 0:12:09.720
<v Speaker 16>now a new member of the Alliance that will join

0:12:09.880 --> 0:12:10.360
<v Speaker 16>very shortly.

0:12:10.520 --> 0:12:12.000
<v Speaker 3>I mean, this has to be seen as a really

0:12:12.080 --> 0:12:15.600
<v Speaker 3>important step for NATO, just given the fact that the

0:12:15.679 --> 0:12:18.640
<v Speaker 3>whole idea behind the summit is to continue to show

0:12:18.760 --> 0:12:22.880
<v Speaker 3>unity around Ukraine in the face of Russia's aggression. What

0:12:23.000 --> 0:12:25.800
<v Speaker 3>kind of a signal does Sweden's entry into NATO send.

0:12:26.160 --> 0:12:29.760
<v Speaker 16>The objects here are very important because NATO wants to

0:12:29.800 --> 0:12:32.720
<v Speaker 16>project this idea that we are so united, we're more

0:12:32.800 --> 0:12:36.000
<v Speaker 16>united than we've ever been because of the Russian invasion

0:12:36.080 --> 0:12:39.480
<v Speaker 16>of Ukraine and that has really bolstered our alliance in

0:12:39.559 --> 0:12:42.480
<v Speaker 16>terms of the military, but the political allegiance to the

0:12:42.520 --> 0:12:44.800
<v Speaker 16>police into it. They did not want to have a

0:12:44.920 --> 0:12:48.280
<v Speaker 16>debate that word or could get toxic in the midst

0:12:48.280 --> 0:12:50.319
<v Speaker 16>of the stomach. So the fact that this was cleared

0:12:50.440 --> 0:12:54.320
<v Speaker 16>on the nights before the stummit started as a huge relief. Frankly,

0:12:54.360 --> 0:12:56.960
<v Speaker 16>you should have seen the smile on the Swedish Prime

0:12:56.960 --> 0:12:59.240
<v Speaker 16>minister yesterday. United it with a smile from year to year.

0:12:59.520 --> 0:13:02.800
<v Speaker 16>In terms of today, the debate moves now to Ukraine.

0:13:03.000 --> 0:13:05.760
<v Speaker 16>The question is whether they can get to that unity

0:13:05.800 --> 0:13:09.720
<v Speaker 16>when it comes to this invitation or not for nature membership,

0:13:09.760 --> 0:13:12.200
<v Speaker 16>we know this is a very delicate issue and again

0:13:12.240 --> 0:13:13.960
<v Speaker 16>it will put that unity to the test.

0:13:14.280 --> 0:13:15.560
<v Speaker 3>I got to think that there's going to be a

0:13:15.559 --> 0:13:19.960
<v Speaker 3>lot of pressure on NATO to do something with Ukrainian

0:13:20.000 --> 0:13:24.320
<v Speaker 3>President Zelensky, as I understand it appearing in person in Vilnius.

0:13:24.600 --> 0:13:24.840
<v Speaker 2>Yes.

0:13:24.880 --> 0:13:27.120
<v Speaker 16>And at the point I got to be very honest,

0:13:27.280 --> 0:13:30.240
<v Speaker 16>the focus of all the reporters here, and we're probably

0:13:30.240 --> 0:13:34.120
<v Speaker 16>in the thousands, is when is Vi Lensky going to arrive,

0:13:34.320 --> 0:13:36.520
<v Speaker 16>because we know he is going to participate in the

0:13:36.600 --> 0:13:40.360
<v Speaker 16>Nature sessions already. The symbolic nature of that, the objects

0:13:40.880 --> 0:13:43.560
<v Speaker 16>of that go back to the unity conversation that we

0:13:43.559 --> 0:13:47.600
<v Speaker 16>were just debating on the show. And look, it's a

0:13:47.640 --> 0:13:50.880
<v Speaker 16>complicated situation because on the one hand, there's this idea

0:13:51.000 --> 0:13:54.120
<v Speaker 16>that Ukraine needs some kind of signal but to keep

0:13:54.160 --> 0:13:57.160
<v Speaker 16>the country in a gray area. And yesterday I spoke

0:13:57.440 --> 0:14:00.120
<v Speaker 16>to the Lithuanian president, who is also the host of

0:14:00.160 --> 0:14:03.000
<v Speaker 16>the summit. He told me this gray area you're not in,

0:14:03.120 --> 0:14:05.160
<v Speaker 16>but we're going to help you, but you're actually out.

0:14:05.600 --> 0:14:08.040
<v Speaker 16>This is the most dangerous area to be. The country

0:14:08.120 --> 0:14:11.760
<v Speaker 16>needs now a clear signal. What the Ukrainians one is

0:14:12.000 --> 0:14:15.960
<v Speaker 16>a political invitation. They know they won't get a formal

0:14:15.960 --> 0:14:17.719
<v Speaker 16>one because the war is still going on, but they

0:14:17.720 --> 0:14:20.640
<v Speaker 16>want a political signal that will stay clearly in a

0:14:20.680 --> 0:14:24.800
<v Speaker 16>community Ukraine will join me to once the conditions allowed.

0:14:24.880 --> 0:14:27.320
<v Speaker 16>That is what they want. President Biden obviously made it.

0:14:27.720 --> 0:14:31.520
<v Speaker 16>Technically they're not ready yet for a formal invitation, but

0:14:31.560 --> 0:14:34.840
<v Speaker 16>the Native Secretary General also said that is not necessarily

0:14:34.920 --> 0:14:37.320
<v Speaker 16>bad news. They can still get a good package. The

0:14:37.440 --> 0:14:39.680
<v Speaker 16>question is about the structure. How are they going to

0:14:39.760 --> 0:14:42.400
<v Speaker 16>freeze this idea? And I think that's where we're going

0:14:42.440 --> 0:14:46.280
<v Speaker 16>to see really the talks behind the scenes, the linguisticals almost.

0:14:46.000 --> 0:14:49.600
<v Speaker 3>Behind it, even ahead of Ukraine potentially getting assurances here

0:14:49.640 --> 0:14:53.040
<v Speaker 3>from this NATO summit. Just having Sweden and Finland getting

0:14:53.080 --> 0:14:56.280
<v Speaker 3>into the alliance here fills it a huge defense gap

0:14:56.280 --> 0:14:57.840
<v Speaker 3>for NATO, doesn't it huge?

0:14:57.880 --> 0:15:02.600
<v Speaker 16>And obviously Sweden Finland their neighbors are also geographically very

0:15:02.600 --> 0:15:05.520
<v Speaker 16>connected to Russia. This is a Baltic Sea and you

0:15:05.560 --> 0:15:08.360
<v Speaker 16>also have the Baltic countries, and what they argue is

0:15:08.360 --> 0:15:11.560
<v Speaker 16>that when you have a very strong nature presence there,

0:15:11.600 --> 0:15:15.000
<v Speaker 16>not only just makes the Nordics safer in that respect

0:15:15.160 --> 0:15:17.440
<v Speaker 16>was the Russian border, but it also makes the sea,

0:15:17.600 --> 0:15:21.479
<v Speaker 16>the Baltic Sea, more protected and secure for the Baltics,

0:15:21.640 --> 0:15:25.000
<v Speaker 16>who also say they feel Russia could potentially be a

0:15:25.080 --> 0:15:28.080
<v Speaker 16>threat to What they argue is with this changes, we're

0:15:28.080 --> 0:15:32.800
<v Speaker 16>now feeling more secure, protected and the nature structure is complete.

0:15:35.440 --> 0:15:38.480
<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

0:15:38.520 --> 0:15:41.960
<v Speaker 1>stories making news from Wall Street to Washington and beyond.

0:15:42.240 --> 0:15:45.000
<v Speaker 2>Look for us on your podcast feed at six am

0:15:45.080 --> 0:15:48.760
<v Speaker 2>Eastern each morning, on Apple, Spotify, and anywhere else you

0:15:48.800 --> 0:15:50.000
<v Speaker 2>get your podcasts.

0:15:50.080 --> 0:15:52.800
<v Speaker 1>You can also listen live each morning starting at five

0:15:52.840 --> 0:15:55.440
<v Speaker 1>am Wall Street time, on Bloomberg eleven three to zero

0:15:55.480 --> 0:15:58.280
<v Speaker 1>in New York, Bloomberg ninety nine to one in Washington,

0:15:58.440 --> 0:16:01.960
<v Speaker 1>Bloomberg one six one in Boston, and Bloomberg nine sixty

0:16:02.120 --> 0:16:03.080
<v Speaker 1>in San Francisco.

0:16:03.440 --> 0:16:06.600
<v Speaker 2>Our flagship New York station is also available on your

0:16:06.640 --> 0:16:12.080
<v Speaker 2>Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

0:16:12.120 --> 0:16:15.080
<v Speaker 1>Listen coast to coast on the Bloomberg Business app, serious

0:16:15.280 --> 0:16:19.200
<v Speaker 1>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:16:19.320 --> 0:16:21.200
<v Speaker 1>dot com. I'm Nathan Hager and.

0:16:21.120 --> 0:16:24.440
<v Speaker 2>I'm Karen Moscow. Join us again tomorrow morning for all

0:16:24.480 --> 0:16:27.000
<v Speaker 2>the news you need to start your day right here

0:16:27.120 --> 0:16:28.440
<v Speaker 2>on Bloomberg Daybreak