WEBVTT - Starmer Under Siege, Iran Ceasefire On ‘Life Support’, EU Chief Faces Backlash 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio news. 0:00:10.160 --> 0:00:13.320 This is the Bloomberg Day Baker podcast. Good morning, It's Tuesday, 0:00:13.360 --> 0:00:16.319 the twelfth of May. I'm Caroline Hebkeit in London and. 0:00:16.239 --> 0:00:19.840 I'm Stephen Carolin Brussels. Coming up today over seventy of 0:00:19.920 --> 0:00:22.800 Kier Starmer's own MP's call for him to go as 0:00:22.840 --> 0:00:25.840 British Prime Minister, as worries in the bond market grow. 0:00:26.480 --> 0:00:30.400 President Trump slams Iran's latest peace offer as he warns 0:00:30.400 --> 0:00:32.960 the sea spot is on massive life support. 0:00:33.479 --> 0:00:36.720 Plus why the EU Commissioned Chief Ursula Vonderlon is facing 0:00:36.800 --> 0:00:38.440 mounting scrutiny. 0:00:38.159 --> 0:00:41.280 Over her use of power. Let's start with a roundup 0:00:41.280 --> 0:00:42.239 of our top stories. 0:00:43.040 --> 0:00:46.400 A growing number of junior government ministers and backbench MPs 0:00:46.440 --> 0:00:49.839 are calling on Kir Starmer to quit as momentum builds 0:00:49.880 --> 0:00:53.800 against the British Prime Minister. Bloomberg understands Cabinet ministers, including 0:00:53.800 --> 0:00:58.240 Home Secretary Shabana Mattmood, have privately told Starmer to set 0:00:58.280 --> 0:01:01.520 out a timetable to step down own. The meeting came 0:01:01.600 --> 0:01:05.360 after the Prime Minister defended his party's poor local election results. 0:01:06.120 --> 0:01:09.440 Yes, I acknowledge the results are tough. Yes, I acknowledge 0:01:09.600 --> 0:01:12.920 that we've lost brilliant representatives across the United Kingdom. 0:01:13.360 --> 0:01:14.760 I have a responsibility for that. 0:01:15.000 --> 0:01:18.119 But I also have a responsibility to deliver the change 0:01:18.120 --> 0:01:20.679 that we were elected and that we promised this country, 0:01:20.800 --> 0:01:21.679 and I'll deliver on that. 0:01:22.800 --> 0:01:25.319 Starmer's speech was billed as a change of direction, but 0:01:25.400 --> 0:01:29.280 instead prompted waves of lawmakers to publicly urge him to go. 0:01:29.800 --> 0:01:32.480 More than seventy of Labour's four hundred and three MPs 0:01:32.480 --> 0:01:36.320 have now publicly called Anstarmer to step aside. Chris Curtis 0:01:36.400 --> 0:01:37.520 is one of them. 0:01:37.959 --> 0:01:40.000 I don't think we saw a plan from the Prime 0:01:40.000 --> 0:01:43.080 Minister in order to implement the kind of change that 0:01:43.120 --> 0:01:45.840 this country needs, and I therefore think it's time for 0:01:45.920 --> 0:01:48.000 us to look for new leadership. And I think what 0:01:48.040 --> 0:01:51.280 that means is the Prime Minister rightly now setting out 0:01:51.320 --> 0:01:54.600 a timetable and an orderly process for leadership election and 0:01:54.640 --> 0:01:58.040 one in which Labor has a discussion about the vision 0:01:58.040 --> 0:01:59.920 for the country and what changes we think are needed 0:02:00.440 --> 0:02:04.040 in order to face the very real challenges that Britain 0:02:04.080 --> 0:02:04.840 currently faces. 0:02:05.640 --> 0:02:08.080 Labor MP and head of the Labor Growth Group in Parliament, 0:02:08.160 --> 0:02:11.040 Chris Curtis there. The Prime Minister is showing a cabinet 0:02:11.080 --> 0:02:13.360 meeting this morning where he will have to confront some 0:02:13.480 --> 0:02:17.440 senior ministers who privately think his time is up well. 0:02:17.480 --> 0:02:20.480 Fears over the future of the UK's Prime minister are 0:02:20.480 --> 0:02:24.000 already feeding through into Britain's bond market. UK Gilts was 0:02:24.040 --> 0:02:27.280 swept up in another sell off yesterday as investors grew 0:02:27.320 --> 0:02:32.360 increasingly anxious about the country's finances. Investors appear concerned that 0:02:32.440 --> 0:02:34.720 a change of prime minister could bring in a left 0:02:34.800 --> 0:02:39.280 leaning candidate whose spending plans would require increased bondish ones. 0:02:39.600 --> 0:02:41.960 Despite yields being close to their highest level since two 0:02:42.000 --> 0:02:46.040 thousand and eight, James Stringer of Schroeders is advising investors 0:02:46.080 --> 0:02:50.000 to steer clear of UK debt. The bonfund manager says 0:02:50.040 --> 0:02:53.160 that even ten year yields around five percent are not 0:02:53.600 --> 0:02:59.240 enough compensation to justify resuming the firm's previously bullish stance 0:02:59.320 --> 0:03:00.000 on guilts. 0:03:00.560 --> 0:03:03.840 Oil prices are climbing after President Trump cast doubt on 0:03:03.880 --> 0:03:07.480 the fragile US around ceasefire. Brent crud rose above one 0:03:07.520 --> 0:03:10.000 hundred and five dollars a barrel as fears grow that 0:03:10.080 --> 0:03:13.040 the strait of hor moves could remain closed for longer 0:03:13.080 --> 0:03:15.840 than markets had hoped. Speaking in the Oval Office, Trump 0:03:15.880 --> 0:03:17.800 dismissed Tehran's latest proposal. 0:03:18.480 --> 0:03:23.240 It's unbelievably wik We say, I would go with the 0:03:23.280 --> 0:03:27.320 weakest right now, after reading a piece of garbage. They said, 0:03:27.720 --> 0:03:30.360 I didn't even finish reading it. They said, I'm going 0:03:30.400 --> 0:03:32.840 to waste my time reading it. I would say it's 0:03:32.880 --> 0:03:36.120 one of the weakest right now. It's on life support. 0:03:36.160 --> 0:03:40.160 They understood, these are all medical people. Doctor US life 0:03:40.200 --> 0:03:43.080 support is not a good thing, you dreck bag prognostic. 0:03:43.160 --> 0:03:46.960 I would say the seasfire is on massive life support. 0:03:48.000 --> 0:03:51.200 Trump's comments came after sources told Bloomberg that Irans offered 0:03:51.240 --> 0:03:55.280 demanded the US lift its naval blockade and provide sanctions 0:03:55.320 --> 0:03:58.520 relief while allowing Tehran to retain a degree of control 0:03:58.600 --> 0:04:02.440 over traffic through the Strait. According to Axios, citing multiple 0:04:02.560 --> 0:04:06.440 US officials, Trump met his national security team yesterday to 0:04:06.520 --> 0:04:09.160 discuss the war and possible resumption. 0:04:08.760 --> 0:04:09.600 Of military action. 0:04:10.120 --> 0:04:13.200 In a further sign of escalation, arounds, semi official Tasmum 0:04:13.200 --> 0:04:16.720 News agency now says the country has deployed armed mini 0:04:16.800 --> 0:04:18.680 submarines in the Persian Gulf. 0:04:19.440 --> 0:04:22.440 The US has ramped up sanctions on the sale of 0:04:22.480 --> 0:04:25.960 Iranian oil to China, just days ahead of President Trump's 0:04:26.040 --> 0:04:30.000 visit to the country. The US Treasury has blacklisted twelve 0:04:30.040 --> 0:04:33.839 firms and individuals, including some base in Hong Kong, the UAE, 0:04:34.000 --> 0:04:37.680 and Oman. In a statement, the Treasury said that Iran 0:04:37.800 --> 0:04:42.760 is relying on front companies in permissive jurisdictions to funnel 0:04:42.800 --> 0:04:46.000 it oil revenue. The Treasury also repeated it threat to 0:04:46.000 --> 0:04:51.360 impose secondary sanctions on firms linked to China's private oil refineries. 0:04:51.560 --> 0:04:55.560 President Trump and China's Xijingping will meet in Beijing on Thursday, 0:04:55.880 --> 0:04:58.320 where they'll discuss trade and the war in Iran. 0:04:59.400 --> 0:05:02.039 Michael Berry says he believes the Nasdaq one hundred index 0:05:02.080 --> 0:05:04.960 has headed for a dramatic reversal after what he has 0:05:05.040 --> 0:05:09.400 dubbed a parabolic surge. With more Here's Bloomberg's crispet. 0:05:09.960 --> 0:05:12.880 The investor made famous by the Big Short, is now 0:05:12.960 --> 0:05:16.640 sounding the alarm on US tech stocks. Writing in a 0:05:16.680 --> 0:05:20.640 post on Substack, Burry said we are witnessing history in 0:05:20.720 --> 0:05:24.200 the stock market that is not a good thing. He 0:05:24.360 --> 0:05:27.000 argues that the market resembles the peak of the dot 0:05:27.040 --> 0:05:30.520 com bubble, pointing to the Nasdaq one hundred, now trading 0:05:30.600 --> 0:05:34.279 US around forty three times earnings. Burry is among a 0:05:34.360 --> 0:05:37.920 number of market observers who raised concerns about the rally 0:05:38.000 --> 0:05:41.719 driven by artificial intelligence spending boom that for now at 0:05:41.800 --> 0:05:46.280 lease shows no signs of calling. In London, Chris Pitt, Bloomberg. 0:05:45.880 --> 0:05:51.000 Radio, South Korea's Cosby Index shed more than three hundred 0:05:51.000 --> 0:05:54.919 billion dollars in value in just ninety seven minutes today. 0:05:55.279 --> 0:05:59.040 The sharp seller followed a proposal from the President's policy 0:05:59.160 --> 0:06:03.200 chief to its use a so called citizen dividend funded 0:06:03.240 --> 0:06:07.599 by excess profits from the AI industry. Christy Tan, senior 0:06:07.640 --> 0:06:11.560 Investment straatches at Franklin Templeton Institute, says there may be 0:06:11.680 --> 0:06:13.760 more volatility ahead for the index. 0:06:14.320 --> 0:06:18.080 What we saw this morning that Marcus still very sensitive. 0:06:18.160 --> 0:06:21.280 I would be enthusiastic and careful at the same time. 0:06:21.720 --> 0:06:25.320 The markets are wieners from a capex, but they are 0:06:25.360 --> 0:06:30.440 also concentrated, especially in Taiwan. For Korea, the structural discount 0:06:30.480 --> 0:06:32.840 has narrowed, but that's not close totally. 0:06:33.760 --> 0:06:37.560 Christy Tan of the Franklin Templeton Institute, speaking there, the 0:06:37.640 --> 0:06:40.120 cell of equates to more than three billion dollars a 0:06:40.320 --> 0:06:43.799 minute in losses for the Benchmark index, weighing on sentiment 0:06:43.839 --> 0:06:47.840 across Asia, although the costby is still up seventy eight 0:06:47.880 --> 0:06:49.120 percent this year. 0:06:49.440 --> 0:06:52.560 Germany's fiscal watchdog is warned that the government risks breaching 0:06:52.600 --> 0:06:56.920 EU fiscal rules of current spending continues. The Stability Council 0:06:57.040 --> 0:06:59.960 expects the country's budget deficit to reach four point two 0:07:00.120 --> 0:07:02.800 five percent of GDP this year, with spending growth of 0:07:02.880 --> 0:07:06.559 six percent. Both figures exceed EU limits. Today, the Chancellor, 0:07:06.600 --> 0:07:09.080 Frederick Martz will hold a key meeting with his coalition 0:07:09.160 --> 0:07:13.080 partners to discuss plans to overhaul Germany's tax and pension system. 0:07:13.840 --> 0:07:16.320 And those are our top stories. Looking at the markets 0:07:16.320 --> 0:07:19.160 this morning, bank read futures training up six tens of 0:07:19.160 --> 0:07:21.680 one percent at one hundred and four dollars eighty six, 0:07:21.800 --> 0:07:25.040 with WCI crewed at ninety eight dollars ninety three. The 0:07:25.240 --> 0:07:28.240 Cosby has seen wild swings today at the moment is 0:07:28.280 --> 0:07:31.920 down by three percent. The AI boom enriching the chip 0:07:31.920 --> 0:07:36.360 makers like Samsung Electronics and s k Heinex book calls 0:07:36.440 --> 0:07:41.720 for taxes on profits treasuries. This morning, US yields up 0:07:41.720 --> 0:07:44.200 by about a basis point at four forty two for 0:07:44.440 --> 0:07:47.320 ten year yields, stop futures for the US in the 0:07:47.320 --> 0:07:50.440 red USOX swifty futures slumping seven tenths of one percent, 0:07:50.680 --> 0:07:52.520 and we keep an eye on the PAD which is 0:07:52.560 --> 0:07:55.600 weakening two tens of one percent this morning. Remember thirty 0:07:55.680 --> 0:08:00.160 year guilt yields yesterday rose almost eleven basis points of 0:08:00.280 --> 0:08:04.320 five point six y nine because of the political pressures 0:08:04.360 --> 0:08:05.840 on the Prime minister of those the market. 0:08:06.640 --> 0:08:08.720 Well, in a moment, we'll have more on those political 0:08:08.760 --> 0:08:13.000 pressures on Caer Starmer and why finding compromise over Iran's 0:08:13.080 --> 0:08:16.800 nuclear program will be difficult, plus why a concentration of 0:08:16.880 --> 0:08:18.880 power at the top of the European Commission is being 0:08:18.920 --> 0:08:22.920 blamed for slow progress on tackling the EU's key challenges. 0:08:23.360 --> 0:08:25.000 Before all that, I wanted to mention the story that 0:08:25.000 --> 0:08:28.040 we've been reading this morning about parenting in the age 0:08:28.120 --> 0:08:31.600 of AI Bloomberg Opinions. Lisa Jarvis has been writing about 0:08:31.600 --> 0:08:34.400 this the newest challenge facing parents. How do you place 0:08:34.480 --> 0:08:39.319 guardrails on yet another piece of rapidly evolving technology. Now 0:08:39.320 --> 0:08:42.120 I am woefully underqualified, Caroline to talk about this, but 0:08:42.320 --> 0:08:45.240 I find it quite jarring, not being a parent that 0:08:45.320 --> 0:08:48.640 Lisa Jarvis is talking about running a full scale experiment 0:08:48.720 --> 0:08:52.160 on teams social emotional, and cognitive development, and parents are 0:08:52.160 --> 0:08:54.800 the main backstop for their safety. Doesn't that give you Comforst. 0:08:54.800 --> 0:08:55.640 Caroline at this hour. 0:08:55.600 --> 0:08:56.840 Of the morning. Absolutely? 0:08:56.960 --> 0:09:01.320 Wooh, it's all down to the parents in densely difficult Look, 0:09:01.880 --> 0:09:04.560 I'm afraid I am a parent, and this absolutely is 0:09:04.600 --> 0:09:06.160 a daily issue. 0:09:06.320 --> 0:09:07.800 You know, the concerns. 0:09:07.400 --> 0:09:12.559 About what teens are doing, how they're using technology online, 0:09:12.600 --> 0:09:14.880 and what it means, you know, for their life. I 0:09:14.880 --> 0:09:18.000 think it's a balancing act between living in the digital 0:09:18.080 --> 0:09:21.600 age and needing those skills maybe for your life future, 0:09:21.640 --> 0:09:23.880 but then also being worried about whether it's going to 0:09:23.920 --> 0:09:28.280 have unintended consequences or Yeah, it's a very difficult balancing act. 0:09:28.480 --> 0:09:30.560 But she raises a point that's relevant to teenagers, but 0:09:30.559 --> 0:09:32.280 I think relevant to all of us as well, about 0:09:32.280 --> 0:09:35.440 what AI makes easy and whether it's skipping over the 0:09:35.480 --> 0:09:37.560 parts that feel hard, which are the parts that you 0:09:37.600 --> 0:09:39.199 actually learn things from. 0:09:39.320 --> 0:09:41.920 Yes, and this is part of my kind of broader. 0:09:41.640 --> 0:09:44.160 Existential fear about AI, is that maybe actually it's taking 0:09:44.200 --> 0:09:46.480 away the things that's going to you know, keep our 0:09:46.520 --> 0:09:49.640 cognitive functions working and keep us thinking and learning throughout 0:09:49.640 --> 0:09:51.360 our lives. Anyway, it's a great read. We'll put a 0:09:51.400 --> 0:09:53.079 link to on our podcast show notes. 0:09:54.000 --> 0:09:56.840 Well, let's go to the big story in the UK now, 0:09:57.000 --> 0:10:00.880 kist Arma is facing renewed pressure on his position. Has 0:10:00.960 --> 0:10:03.640 dozens of MPs and at least one senior cabinet member 0:10:03.679 --> 0:10:07.520 are urging him to reconsider his position. Our UK Politics 0:10:07.520 --> 0:10:10.959 who reported James Walcock joins us for more. Now, how 0:10:11.040 --> 0:10:15.280 much pressure is the prime minister under? This morning you 0:10:15.360 --> 0:10:18.560 and I were listening and we broadcast it on London 0:10:18.640 --> 0:10:24.760 dab the speech that Starma made after the local election results. 0:10:25.280 --> 0:10:28.079 In the twelve or so hours since he gave that speech, 0:10:28.520 --> 0:10:31.280 nearly twenty percent of his MPs have called on in 0:10:31.360 --> 0:10:34.960 publicly to go. It doesn't get more stark than that. 0:10:35.160 --> 0:10:38.480 Frankly and then Bloomberg are reporting, as our other outlets 0:10:38.520 --> 0:10:43.720 overnight that cabinet ministers, including Home Secretary Shabonahma Mood and 0:10:43.760 --> 0:10:46.080 we suspect there are others. And this comes after two 0:10:46.080 --> 0:10:49.320 weeks ago Edmund banded the same thing. Are privately telling 0:10:49.440 --> 0:10:52.000 Prime Minister Kirs Starmer that he has to set out 0:10:52.120 --> 0:10:58.440 a timetable for this cabinet meet this morning. Those cabinet ministers, 0:10:58.520 --> 0:11:00.679 one would suspect, are not going to keep their feelings 0:11:00.679 --> 0:11:04.240 to themselves. Although we know the Prime Minister still has 0:11:04.280 --> 0:11:08.640 his backers. This is a deeply perilous position and I 0:11:08.679 --> 0:11:10.800 have to say, Caroline, as we've covered quite a few 0:11:10.800 --> 0:11:13.560 prime ministers going in our time, this has all the 0:11:13.600 --> 0:11:17.840 hallmarks of being quite dangerous, potentially terminal. 0:11:18.840 --> 0:11:21.920 So is there a path then that Kirstarmer can survive this? 0:11:22.160 --> 0:11:25.600 James Stephen, like I said, he has his backers. You 0:11:25.640 --> 0:11:28.040 look to of Luke Akhurst, you look to Steve Reid, 0:11:28.160 --> 0:11:28.800 to the House. 0:11:28.600 --> 0:11:29.520 And Community Secretary. 0:11:29.520 --> 0:11:31.040 There are people who still wants darm to be in 0:11:31.120 --> 0:11:35.040 charge and fear deeply the impression of being seen as 0:11:35.120 --> 0:11:39.560 similar to the Conservatives. The difficulty is once, by my 0:11:39.640 --> 0:11:42.439 count it's seventy two. Once seventy two of your own 0:11:42.600 --> 0:11:44.880 MPs have publicly said they would. 0:11:44.720 --> 0:11:45.480 Rather you gone. 0:11:45.880 --> 0:11:48.240 And I mean looking at the quotes, these are not 0:11:48.280 --> 0:11:50.600 the usual suspects, Steve when These are MPs of Scotland, 0:11:50.679 --> 0:11:54.040 in London, in Manchester, in Birmingham in the left, the 0:11:54.080 --> 0:11:56.560 head of the Tribune Group on the right, the Blue 0:11:56.640 --> 0:12:00.760 Labor Group plus six ministerial aids and they're saying things 0:12:00.760 --> 0:12:03.600 publicly like the speech failed to show he can regain trust. 0:12:04.320 --> 0:12:06.360 The Prime Minister has lost the confidence of the public 0:12:06.720 --> 0:12:10.160 poor decisions and enforced errors. The animosity towards the Prime 0:12:10.160 --> 0:12:12.400 Minister was clear from every voter who was choosing to 0:12:12.480 --> 0:12:15.000 vote for another party. The content of the speech did 0:12:15.000 --> 0:12:17.120 not suist anything close to the scale of the change 0:12:17.160 --> 0:12:18.760 need to rebuild communities like mine. 0:12:18.760 --> 0:12:20.040 Those are all different MPs. 0:12:20.400 --> 0:12:24.400 Once you've said things like that publicly about your leader, 0:12:25.000 --> 0:12:27.160 you will never be able to wind that back as 0:12:27.160 --> 0:12:30.440 an MP. So those seventy two MPs are effectively committed 0:12:30.480 --> 0:12:33.880 to getting starmar out come what may and even if 0:12:33.920 --> 0:12:36.960 he continues, he'll have to go on without them, So 0:12:37.000 --> 0:12:37.960 it's not impossible. 0:12:38.240 --> 0:12:39.800 What he might have to do is play for time. 0:12:39.880 --> 0:12:41.640 He may be able to sort of be in plower 0:12:41.640 --> 0:12:43.680 for months and things may change as time goes on. 0:12:44.280 --> 0:12:48.280 Yeah, look, we know from the local election results. There'll 0:12:48.320 --> 0:12:51.040 be more analysis done, but we know from polling before 0:12:51.120 --> 0:12:54.560 the local election results that voters are deeply pessimistic about 0:12:54.600 --> 0:12:57.600 the economy, deeply worried about things like the cost of living, 0:12:57.840 --> 0:13:02.679 and about the NHS, the health system. How could Labour's 0:13:03.120 --> 0:13:08.120 political direction change to answer that because markets are already moving, 0:13:08.280 --> 0:13:10.520 investors are already concerned. 0:13:11.200 --> 0:13:15.840 It all depends what conversation the party wants to have 0:13:16.480 --> 0:13:18.840 about what direction it goes in here, so kind of 0:13:18.840 --> 0:13:23.120 the people to watch this cabinet meeting if it's almost 0:13:23.120 --> 0:13:25.200 certain to leak in some fashion, Caroline but Lo, Look, 0:13:25.400 --> 0:13:27.880 let's say Starma comes out to give a statement after, 0:13:27.960 --> 0:13:30.040 we might get a sense of what that contest. 0:13:29.640 --> 0:13:31.679 If there were to be a leadership contest, would look like. 0:13:32.000 --> 0:13:34.400 How these sort of potential future leaders likes and Andy 0:13:34.400 --> 0:13:36.880 burn in West Street Andreina might put their ideas forward, 0:13:36.920 --> 0:13:39.280 what those ideas might look like. That's where you'll get 0:13:39.320 --> 0:13:41.240 some of the policy you're sort of deeply looking for. 0:13:41.800 --> 0:13:45.600 If Starma doesn't want to do that, do cabinet ministers 0:13:45.600 --> 0:13:47.240 take to the media, and we end up with kind 0:13:47.240 --> 0:13:49.120 of more of a scramble. If we then look to 0:13:49.160 --> 0:13:51.719 the NEC Labour's rule making body, how are they due 0:13:51.720 --> 0:13:55.280 to get a leadship contest? And then finally, if Starmer's 0:13:55.280 --> 0:13:57.079 determined to stick in, if it's becomes a sort of 0:13:57.160 --> 0:14:01.000 drawn out contest, do those rivals themselves with Andy Burnham 0:14:01.040 --> 0:14:04.000 Airgrad Manchester Rayner Street that I've just mentioned, do they 0:14:04.120 --> 0:14:06.640 take to the airways sort of last resort and themselves 0:14:06.679 --> 0:14:09.600 call for a change direction. If they set out their 0:14:09.640 --> 0:14:12.280 stall again, that will give you the kind of idea 0:14:12.760 --> 0:14:15.679 in terms of policies, change strategy that. 0:14:15.600 --> 0:14:20.240 You're looking for. Okay, James r ukpartic supporter, Thank you. Now. 0:14:20.440 --> 0:14:23.680 The US President says that the cease far with Iran 0:14:23.840 --> 0:14:27.320 is on massive life support after he rejected Tehran's latest 0:14:27.440 --> 0:14:31.000 peace offer. Failed attempts to reach a basic framework for 0:14:31.040 --> 0:14:36.600 further discussions jeopardize the prospects for successful negotiations over future 0:14:36.640 --> 0:14:41.160 curves on Iran's nuclear program. Our nuclear diplomacy reporter Jonathan 0:14:41.240 --> 0:14:45.320 Tyrone joins US Now for more. Good morning, Jonathan. How 0:14:45.440 --> 0:14:50.040 much has been discussed about Iran's nuclear program then during 0:14:50.160 --> 0:14:53.400 these attempts at diplomacy, The short. 0:14:53.200 --> 0:14:55.640 Answer is not much all. 0:14:56.520 --> 0:15:00.360 In fact, the strength that began on February twenty have 0:15:00.520 --> 0:15:04.760 created a whole new series of problems, primarily focused around 0:15:04.840 --> 0:15:07.760 the closure of the strati form MOOS and the consequent 0:15:08.320 --> 0:15:10.160 economic and energy. 0:15:09.880 --> 0:15:11.520 Crisis that's caused. 0:15:12.240 --> 0:15:16.920 And so the talks to this point of focused mainly 0:15:17.000 --> 0:15:22.400 on regional security, regional state, ceasefires and opening the straight 0:15:22.400 --> 0:15:25.200 back up. The nuclear istion has very much become a 0:15:25.200 --> 0:15:31.720 subsidiary issue. The Iranians are proposing phased approach, basically saying 0:15:31.760 --> 0:15:35.040 they want to have a regional ceasefire that includes Lebanon 0:15:35.400 --> 0:15:39.720 UH and UH followed by some sort of men management 0:15:39.720 --> 0:15:44.400 planner of the stratior for moves, then followed by nuclear talks. 0:15:44.440 --> 0:15:47.240 I mean, this comes down to, you know, the big 0:15:47.240 --> 0:15:50.280 issue is that the Trimp administration is basically entering UH 0:15:50.440 --> 0:15:54.600 talks expecting some sort of conpitulation to US demands, and 0:15:54.720 --> 0:15:58.240 the Iranians don't see themselves as a defeated power and 0:15:58.360 --> 0:16:01.120 expect a lengthy negotiation between equals. 0:16:01.520 --> 0:16:04.000 Do we have an idea of what Iran might agree 0:16:04.040 --> 0:16:07.400 to when it comes to its uranium and its nuclear program. 0:16:07.840 --> 0:16:10.680 Yeah, we do have an idea about that. The Foreign 0:16:10.720 --> 0:16:17.400 Minister Abasar Rachi visited Moscow last week, Resident Putin during 0:16:17.440 --> 0:16:22.720 his readout of that meeting, you know, suggested a couple 0:16:22.800 --> 0:16:26.440 of things that had been in public discussions in recent times. 0:16:26.480 --> 0:16:31.400 I mean, obviously, in twenty fifteen, under the nuclear agreement 0:16:31.480 --> 0:16:36.760 that Trump abrogated in his first administration, Russia had actually 0:16:36.800 --> 0:16:41.720 assumed control of a large stockpile of Iranian in riched uranium. 0:16:42.280 --> 0:16:46.600 That is one possibility that's been discussed. Another possibility is 0:16:46.880 --> 0:16:53.000 that the Iranians blend the enriched uranium stockpile down to 0:16:53.080 --> 0:16:56.720 a level within Iran so that it cannot be turned 0:16:56.760 --> 0:17:02.520 into a weapon. But at the moment, Iran insisted isn't 0:17:02.560 --> 0:17:05.240 willing to give up anything. It's not even really willing 0:17:05.280 --> 0:17:08.960 to talk about those options until the other issues are addressed. 0:17:09.760 --> 0:17:13.720 Indeed, so we'll see whether any further progress is made. Jonathan, 0:17:13.880 --> 0:17:16.320 thank you so much for that explanation and update on 0:17:16.440 --> 0:17:21.399 nuclear diplomacy. Reporter Jonathan Tyrone. Stay with us. More from 0:17:21.440 --> 0:17:24.919 Bloomberg Daybakeupe coming up after this Now. 0:17:24.960 --> 0:17:27.800 As head of the European commission Erslavanderline has built a 0:17:27.840 --> 0:17:31.639 presidential operation that exerts control over every aspect of what 0:17:31.760 --> 0:17:34.680 goes on inside the EASE executive the sources of told 0:17:34.680 --> 0:17:37.680 Bloomberg the concentration of power has spread her off as 0:17:37.720 --> 0:17:40.679 thinly and as a result of Vonderline's broader campaign to 0:17:40.720 --> 0:17:44.600 revive the EU project is faltering. Our EU Economy reporter 0:17:44.720 --> 0:17:47.560 Jorge Valero joins us now for more. Orge, Good Morning. 0:17:47.720 --> 0:17:51.320 This reporting is based on conversations with multiple officials and 0:17:51.320 --> 0:17:54.879 diplomats who've worked with arslavanderline, what issues have they raised 0:17:54.880 --> 0:17:56.960 about the way that she's running the European Commission. 0:17:57.200 --> 0:17:58.119 Good morning, Stephen. 0:17:58.520 --> 0:18:02.399 Well, basically, one of the main points they rate the 0:18:02.520 --> 0:18:06.239 races that she is overreaching and trying to grab too 0:18:06.320 --> 0:18:10.480 much power, and she's trying to extend her competencies to 0:18:11.040 --> 0:18:14.080 issues like foreign ef FIRS and defense that are traditionally 0:18:15.240 --> 0:18:18.960 in the hands of member states. And on the other hand, 0:18:19.320 --> 0:18:23.120 she is lacking focus and is not progressing and achieving 0:18:23.200 --> 0:18:27.800 results on internal market, which is which is her core competence, 0:18:27.960 --> 0:18:30.320 and also in other issues. That the dimension is that 0:18:30.520 --> 0:18:37.680 because of this overreaching, of course commissioners internally commissioners are sidelined, 0:18:37.840 --> 0:18:41.760 and we have to remember that these commissioners are powerful 0:18:42.680 --> 0:18:46.560 politicians sent by the capitals, and that she is trying 0:18:46.600 --> 0:18:50.359 to macro manage every aspect of the Commission, which of 0:18:50.440 --> 0:18:54.920 course is provoking bottelnets. And therefore this lack of achieve 0:18:55.680 --> 0:18:59.040 lack of results that we mentioned for example on internal market. 0:18:59.720 --> 0:19:03.560 Okay, well, what then does it mean the internal market 0:19:03.680 --> 0:19:06.240 is one one issue where there isn't enough progress or 0:19:06.280 --> 0:19:09.439 their key policies in the EU that are not seeing 0:19:09.560 --> 0:19:10.800 enough progress. 0:19:10.880 --> 0:19:11.520 What are they? 0:19:12.640 --> 0:19:15.240 Yeah, I mean, well, to put things in context, I 0:19:15.240 --> 0:19:18.879 mean we have to remember that, I mean the EU 0:19:19.040 --> 0:19:21.480 is kind of the underdog right now in this big 0:19:21.560 --> 0:19:23.719 squeeze between the US and China. 0:19:24.200 --> 0:19:26.640 US b like the I mean having the old. 0:19:26.480 --> 0:19:31.920 The military might and defense capacities, and China controlling for example, 0:19:32.840 --> 0:19:36.879 minelas in green tech et cetera, et cetera, And the 0:19:37.160 --> 0:19:40.360 EU is trying to survive this big squeeze. And our 0:19:40.440 --> 0:19:45.240 big muscle is the internal market. And the EU has 0:19:45.240 --> 0:19:48.119 been trying to lower the national warriers to create a 0:19:48.200 --> 0:19:52.520 true single market for for years and there's been increasing 0:19:52.840 --> 0:19:56.800 calls from from the leaders to progress on this, on 0:19:56.840 --> 0:20:00.679 this regard, but we have the remember so the Dragon 0:20:00.760 --> 0:20:03.240 Report and the Letter Report, but so far the results 0:20:03.280 --> 0:20:08.600 have been very, very minimal. And therefore, I mean member 0:20:08.680 --> 0:20:12.080 stage capitals are pointing to funder Lion to I mean 0:20:12.240 --> 0:20:16.120 to tell her, I mean, let's focus on this, lets 0:20:16.119 --> 0:20:18.800 progress on this. But it's also true and this is 0:20:18.840 --> 0:20:22.080 something that I mean commissioned officials said and on some 0:20:22.119 --> 0:20:25.240 capitals admit that the lack of progress is not only 0:20:25.280 --> 0:20:28.440 because they could wonder Lion has not been focusing enough 0:20:28.480 --> 0:20:31.359 on this, but also because the member states, especially the 0:20:31.400 --> 0:20:34.720 big ones, have been reluctant to lower those barriers of 0:20:34.760 --> 0:20:37.840 the internal market because they want to protect the companies. 0:20:38.760 --> 0:20:42.080 Indeed, and I spend some of also what Slvangelian and 0:20:42.080 --> 0:20:44.920 supporters set in her defense on that front, what has 0:20:44.960 --> 0:20:47.520 our slave agel lions off a certain response to this report. 0:20:48.160 --> 0:20:52.840 Well, what her office said is that, I mean, the 0:20:52.840 --> 0:20:57.200 decisions in the Commission have are taken collectively by all 0:20:57.240 --> 0:21:01.600 the commissioners what is called the College of Commissioners, and 0:21:01.640 --> 0:21:04.280 that there are many many hours that are invested in 0:21:04.359 --> 0:21:09.719 every proposal, in every piece of legislation before it's put forward. 0:21:11.000 --> 0:21:12.120 And also what the. 0:21:12.160 --> 0:21:16.280 Supporter says is that this concentration of power that she 0:21:17.400 --> 0:21:21.879 that she has accumulated over the past seven years, I 0:21:21.880 --> 0:21:25.640 mean since the master people said that is the most 0:21:25.680 --> 0:21:28.800 powerful commission president or even more than the Lord who 0:21:28.840 --> 0:21:33.719 is the Commission President who set up created the single market. 0:21:34.600 --> 0:21:37.679 What they say is that this power is needed to 0:21:38.560 --> 0:21:41.479 for these new times because if you need to compete 0:21:41.520 --> 0:21:45.399 with China, you need to compete with the Trump you 0:21:45.480 --> 0:21:49.280 need agility. You cannot spend a lot of time internally 0:21:49.320 --> 0:21:50.400 back and forth. 0:21:51.119 --> 0:21:53.280 To come up. 0:21:53.200 --> 0:21:59.080 With proposals, for example on defense where I mean or 0:21:59.320 --> 0:22:04.760 for example survive on cop with the coby with the vaccine. 0:22:04.840 --> 0:22:08.840 So also, for example, another achievement that she had was 0:22:09.680 --> 0:22:15.040 in putting together the different rounds of sanctions packages against 0:22:15.040 --> 0:22:20.320 the Russia, where her cabinet closely coordinated with the Biding 0:22:20.359 --> 0:22:22.320 administration at the start of the war. 0:22:24.200 --> 0:22:26.920 This is Bloomberg Daybreak Europe, your morning brief on the 0:22:27.000 --> 0:22:30.040 stories making news from London to Wall Street and beyond. 0:22:30.359 --> 0:22:34.360 Look for us on your podcast feed every morning, on Apple, Spotify, 0:22:34.440 --> 0:22:36.480 and anywhere else you get your podcasts. 0:22:36.560 --> 0:22:39.639 You can also listen live each morning on London Dab Radio, 0:22:39.640 --> 0:22:42.280 the Bloomberg Business app, and Bloomberg dot Com. 0:22:42.400 --> 0:22:45.160 Our flagship New York station is also available on your 0:22:45.160 --> 0:22:49.879 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 0:22:50.119 --> 0:22:51.440