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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg Daybreak,

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Speaker 1: your podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Tuesday, the eleventh of February in London.

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Speaker 1: I'm Stephen Carroll. Coming up today. Donald Trump warns the

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Speaker 1: rate of tariffs on steel and aluminium imports to the

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Speaker 1: US may go higher. No thanks. Sam Altman rejects an

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Speaker 1: Elon muskled bid to buy Open Ai. Plus days after

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Speaker 1: the US President spoke of a Gaza riviera, there are

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Speaker 1: fresh doubts over the current ceasefire. Let's start with a

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Speaker 1: roundup of our top stories. President Trump is following through

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Speaker 1: on his pledge to place a twenty five percent tariff

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Speaker 1: on all US steel and aluminium imports. The broad tariffs

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Speaker 1: will include the top suppliers of the metal, including Mexico

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Speaker 1: and Canada, and we'll go into effect in early March.

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Speaker 1: Speaking from the Oval Office, Trump insisted the move would

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Speaker 1: help boost domestic production and bring more jobs to the

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Speaker 1: United States.

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Speaker 2: Protecting are still at aluminum industries is a must. And

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Speaker 2: today I am simplifying our tariffs and CEO and aluminum

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Speaker 2: so that everyone can understand exactly what it means it's

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Speaker 2: twenty five percent without exceptions or exemptions, and that's all countries,

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Speaker 2: no matter where it comes from, all countries. If made

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Speaker 2: in the United States, however, there is no tariff for zero.

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Speaker 1: Trump's move comes on top of new ten percent tariffs

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Speaker 1: on goods from China and twenty five percent levees on

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Speaker 1: Canada and Mexico that are currently paused for one month.

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Speaker 1: The administration says the new levees will crack down on

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Speaker 1: efforts to circumvent existing duties by the likes of Russia

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Speaker 1: and China. Despite Trump's clear insistence that there would be

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Speaker 1: zero exemptions, the US President says he will give consideration

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Speaker 1: to an Australian carve out. Those comments were also echoed

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Speaker 1: by the country's Prime Minister, Anthony Albanesi after call between

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Speaker 1: the two.

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Speaker 3: Men, presented Australia's case for an exemption, and we agreed

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Speaker 3: on wording to say publicly, which is that the US

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Speaker 3: President agreed that an exemption was under consideration in the

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Speaker 3: interests of both of our countries.

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Speaker 1: Anthony Albinizi has been under intense political pressure to secure

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Speaker 1: tariff exemptions for the country's steel and aluminium exports. To

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Speaker 1: the United States. Both leaders sited Australia's trade surplus with

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Speaker 1: the US as the key reason for any carve out.

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Speaker 1: The growing prospect of a trade war comes as the

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Speaker 1: UK's new ambassador to the US, Peter Mandelson, says it's

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Speaker 1: important for allies to respect Trump's electoral mandate. Comments come

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Speaker 1: after Trump suggested last week that the UK may avoid tariffs,

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Speaker 1: saying the relationship can be worked out. Here's what Lord

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Speaker 1: Mandelson told the BBC on his first day in the role.

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Speaker 4: We've got to.

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Speaker 5: Take all these issues as they can. Realize that the

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Speaker 5: president has a very strong and clear mandate for change

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Speaker 5: in the United States. Now that doesn't mean to say

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Speaker 5: that we're going to agree in Britain with every single

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Speaker 5: detail of what he does, but we have to respect

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Speaker 5: and understand what drives him, what is mandated to do,

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Speaker 5: and how his allies need to adjust sometimes.

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Speaker 1: Peter Mandelson also told the BBC that his past criticisms

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Speaker 1: of Trump were quote ill judged and wrong. In twenty nineteen,

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Speaker 1: the labor politician reportedly called the US leader a danger

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Speaker 1: to the world in one interview. Open AI's CEO Sam

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Speaker 1: Altman has declined a ninety seven point four billion dollar

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Speaker 1: bid by an Elon Musk lad Group for the nonprofit

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Speaker 1: saying no thank you. In a post on X, Altmann

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Speaker 1: suggested that instead open Ai would buy x formerly known

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Speaker 1: as Twitter, for nine point seven four billion dollars. Bloomberg's

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Speaker 1: Man Deep Singing says Mosk's bid was unexpected.

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Speaker 4: Everyone is fixated on, you know, lowering the costs. So

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Speaker 4: our view is there will be more consolidation. But I

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Speaker 4: didn't anticipate this form of consolidation where you end up

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Speaker 4: seeing a hostile bid you know where. Clearly, I think,

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Speaker 4: given Microsoft's stake in open Ai, there's no way you

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Speaker 4: could see a deal.

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Speaker 1: Like this, our analyst, Man Deep saying, speaking there are

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Speaker 1: the news first reported by The Wall Street Journal. Musk

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Speaker 1: and Altman have been locked in a long standing feud

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Speaker 1: over the direction of open Ai. The two men works

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Speaker 1: together as founders, but animosivity grew as the chat GPT

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Speaker 1: creator moved towards becoming a for profit business. The Bank

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Speaker 1: of England's Catherine Mann has said that weak demand outweighs

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Speaker 1: inflation risk. Speaking to the Financial Times, the policymaker, who

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Speaker 1: backed an outsized interest rate cut last week, said she

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Speaker 1: sees companies struggling to raise prices as consumers pulled back

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Speaker 1: on spending. The Bank of England last week cut rates

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Speaker 1: by a quarter point to four and a half percent,

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Speaker 1: the third reduction since August. Two members of the Monetary

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Speaker 1: Policy Committee, Man and Spotty Dingra, backed a bigger half

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Speaker 1: point cut. And Europe is facing the threat of another

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Speaker 1: energy crisis after natural gas prices hit their highest level

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Speaker 1: in two years. With the region's gas inventories depleting rapidly.

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Speaker 1: Governments are concerned about the impact of high costs on

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Speaker 1: the economy. Factors including US tariffs and discussions about Russian supply,

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Speaker 1: may also contribute to the ongoing price rally. Those are

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Speaker 1: your top stories on the markets. The US and European

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Speaker 1: stock markets kicked off the week with gains, the S

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Speaker 1: and P five hundred on Wall Street closing zero point

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Speaker 1: seven percent higher, advanced led by tech, the NASDAK finishing

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Speaker 1: up one point two percent. Futures today are pointing slightly

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Speaker 1: lower for both markets, and Vidia extending a five day

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Speaker 1: surge to about fifteen percent, while Meta rose for a

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Speaker 1: sixteenth consecutive session. We did see the dollar strength in

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Speaker 1: yesterday on news of Donald Trump's latest tariffs on steel

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Speaker 1: and aluminium, gold hitting another record high today, up seven

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Speaker 1: tens of one percent twenty nine hundred and twenty eight

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Speaker 1: dollars a troy ounce. At the moment. Japanese markets are closed,

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Speaker 1: so currently no cash treasuries trading. European stock features are

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Speaker 1: looking flat at the moment. The euro is trading at

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Speaker 1: one oh three against the dollar. Well in a moment,

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Speaker 1: we'll bring you up to date on the latest tariff

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Speaker 1: news out of the United States, plus the fears over

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Speaker 1: the ceasefire in Gaza. But another story that I've been

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Speaker 1: reading this morning is the new list of Michelin starred

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Speaker 1: restaurants Moore Hall and Lancashire has been elevated to three stars.

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Speaker 1: Many include the likes of Isle of Mull scallops served

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Speaker 1: in a top of fermented grains with green tomato and

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Speaker 1: caviar just one dish picked out by our food editor

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Speaker 1: Kate Crater in her reporting on this new list. Interesting

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Speaker 1: to see that the Gordon Ramsey Restaurant and Chelsea also

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Speaker 1: retained its three stars. He's just opened a new restaurant

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Speaker 1: in twenty two bishops Gate building which seats just twelve

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Speaker 1: people all in all, twenty two dining rooms across Britain

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Speaker 1: in Ireland getting their first star, including Oma and Borough Market.

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Speaker 1: Our food editor k Crater, noting the number of names

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Speaker 1: outside of London. Two new starred restaurants in Edinburgh as well.

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Speaker 1: Good to see if you Irish names on the list too,

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Speaker 1: Lignham and go Away on the Morrison Room, and Carton

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Speaker 1: House and Kildare getting their first star as well. You

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Speaker 1: can read the full list and kate'soverview at Bloomberg dot

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Speaker 1: com and on the terminal. Well, let's bring you the

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Speaker 1: latest now. In our top story, the US tariffs on

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Speaker 1: imported steel and aluminium, which Donald Trump has now approved.

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Speaker 1: They'll come into effect on the twelfth of March. Our

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Speaker 1: senior editor dark Wallbank joins us now for more. Derek,

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Speaker 1: good morning. What more details did we get then in

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Speaker 1: these twenty five percent tariffs in the order of the

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Speaker 1: President signed.

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Speaker 6: Yeah, well right now you're looking at twenty five percent

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Speaker 6: tariffs on steel and aluminum pair of executive orders that

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Speaker 6: were published just before midnight Washington time. Trump vastly previewed

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Speaker 6: them in the White House with reporters in what's becoming

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Speaker 6: a trademark impromptu press conference. Style event. He said they

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Speaker 6: were going to drive jobs and investments to the United States.

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Speaker 6: He did warn that there is a possibility of things

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Speaker 6: going higher if there's retaliation. He did say that this

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Speaker 6: was going to happen without exception, But as you mentioned

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Speaker 6: in your introduction, quite rightly, so, there is actually a

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Speaker 6: potential for exception. Indeed, Australia is heavily pursuing one. I

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Speaker 6: suspect others will want to pursue one as well, And

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Speaker 6: Trump gave a little bit of an outline as to

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Speaker 6: how something like that may happen. There's certainly time for

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Speaker 6: that to happen because the new rates don't take effect

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Speaker 6: until March twelfth, just after midnight Washington times, so there

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Speaker 6: is a month between now and when these will take effect.

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Speaker 1: What sort of reaction have we had, of course, you know,

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Speaker 1: we're sort of twenty four hours on or more or

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Speaker 1: from the first announcement of these tires, even though the

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Speaker 1: order was only actually signed in the past twelve hours

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Speaker 1: or so. What have we heard in terms of those

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Speaker 1: who'll be effected.

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Speaker 6: Well, it's a sort of muted reaction I think across

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Speaker 6: across markets right now, which is really interesting. It suggests

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Speaker 6: both that some of this has been priced in, as

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Speaker 6: well as the idea that maybe there are maybe there

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Speaker 6: are outlets that maybe have available some off ramps, so

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Speaker 6: to speak. So that has been a bit of a

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Speaker 6: muted reaction there. As I say, I think a lot

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Speaker 6: of a lot of the folks who may be targeted

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Speaker 6: by this are trying to figure out their strategies. Additionally,

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Speaker 6: we have seen thus far Trump's presidency the second go round,

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Speaker 6: that coming out and putting him on blasts, so to speak,

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Speaker 6: has not been necessarily an effective strategy. I think people

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Speaker 6: are starting to learn from some of the world leaders

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Speaker 6: who have maybe been more effective, Mexico's Clouda Shinbaum's being

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Speaker 6: a good example of this, and keeping some of those

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Speaker 6: disagreements close to the vest while trying to figure a

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Speaker 6: path forward.

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Speaker 1: We also hide the threat from Donald Trump of reciprocal

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Speaker 1: tariffs on quote everyone, did we get any further indication

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Speaker 1: from the US President is of what might happen on

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Speaker 1: that front.

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Speaker 6: Still to come is where we are there, but noting

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Speaker 6: that reciprocal is a move right because it was going

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Speaker 6: to be universal tariffs on everything of a certain level,

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Speaker 6: and there was some question about what that level would

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Speaker 6: be at But now we're on to reciprocal tariffs, which

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Speaker 6: is a distinction with a difference.

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Speaker 7: Right.

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Speaker 6: This is suggesting. Look, if there's let's say, a fifty

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Speaker 6: percent tariff on an individual American good that gets shipped abroad,

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Speaker 6: and maybe the US will put a fifty percent tariff

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Speaker 6: on something else and equalize it out there, that leaves

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Speaker 6: an awful lot of room for potential negotiation. It remains

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Speaker 6: to be seen what the White House is going to

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Speaker 6: target with that. Presumably they're going to have to go

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Speaker 6: through a list of of tariffs that other nations have

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Speaker 6: on US goods and kind of figure out from there

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Speaker 6: and go forward. That's a process that takes time. All

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Speaker 6: of this is I don't want to say that it's

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Speaker 6: purely kicking the can down the road to use a Washingtonism,

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Speaker 6: but it does offer an opportunity for delay, and it

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Speaker 6: does offer an opportunity for negotiation, even if it also

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Speaker 6: offers an opportunity for confusion.

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Speaker 1: Okay, dark oldbank Garsenior editor, thank you very much for

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Speaker 1: joining us that Donald Trump says Israel should call off

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Speaker 1: at cease far deal with Hamas if hostages aren't returned

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Speaker 1: this weekend, that's off the group announced it was indefinitely

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Speaker 1: postponing their release, citing in part efforts by Trump and

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Speaker 1: Israeli officials to push Palestinians to relocate from Gaza our

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Speaker 1: mid least economy and government AGRA. Paul Wallace joins us

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Speaker 1: now for more. Paul, what is the state of the

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Speaker 1: cease fire this morning? How serious is this warning from

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Speaker 1: Donald Trump? It is at a pretty vulnerable state. So

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Speaker 1: this the latest developments.

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Speaker 8: Happened when Hamas said it was going to postpone Saturday's

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Speaker 8: exchange of hostages and prisoners, I wouldn't release the next

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Speaker 8: batch of hostages on Saturday. Israel reacted by saying this

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Speaker 8: is a violation of the ceasefire and put its military

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Speaker 8: on high alert in case. I suppose in case Hamas

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Speaker 8: was going to take military action against IDF troops. So

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Speaker 8: that was the context of Donald Trump's quote. Trump being Trump,

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Speaker 8: It's unclear whether he meant what he said literally. I mean,

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Speaker 8: taken literally, he means all hostages need to be released.

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Speaker 8: All eighty odd hostages remaining in Gaza need to be

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Speaker 8: released by Saturday. Otherwise Israel should just tear up the

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Speaker 8: ceasefire and go back to war. I don't think anyone

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Speaker 8: in the Israeli government is thinking that that comment is

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Speaker 8: sort of a chance to change the terms of the

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Speaker 8: sea fire and try to literally get all the remaining

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Speaker 8: hostages out by Saturday. I don't think that's the case.

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Speaker 8: Trump Woods maybe suggesting that if Hamas did delay this

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Speaker 8: next exchange on Saturday, then Israel should go back to war,

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Speaker 8: which is something pretty different, but either way, it shows

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Speaker 8: the strains that the ceasefire agreement is under. This phase

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Speaker 8: of the truce is six weeks, it ends in early March.

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Speaker 8: We still have about seventeen hostages to be released from

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Speaker 8: Gaza under this phase of the deal, and probably around

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Speaker 8: another about a thousand or so Palestinians from Israeli jails.

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Speaker 8: But you know, the wider context is that there are

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Speaker 8: plenty of people within Israel that want the country to

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Speaker 8: go back to conflict with Hamas because they believe that

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Speaker 8: the country's future is dependent on wiping out the Iran

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Speaker 8: back group, and that's something that's clearly not been done

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Speaker 8: so far, even though it has severely weekend after sixteen

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Speaker 8: months of war, so we are at a fragile state

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Speaker 8: as far as He's far As concerned. That's for sure.

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Speaker 1: Paul Donald Trump also said that he'd consider cutting off

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Speaker 1: foreign aid to Jordan and Egypt if they didn't agree

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Speaker 1: with his plan to take Palestinian's refugees from the Gaza strip.

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Speaker 1: The King of Jordan meeting the US President today, what

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Speaker 1: message will he be bringing?

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Speaker 8: I think King Abdullah will be bringing a message from

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Speaker 8: pretty much all Arab states, you know, the likes of

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Speaker 8: Saudi Arabia, the Egyptians, the Palestinian authorities and themselves, or

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Speaker 8: certainly the PA which rules parts of the West Bank,

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Speaker 8: and he will be trying to push back against Trump.

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Speaker 8: I think he'll want to avoid an open sort of

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Speaker 8: confrontration with Trump. I don't think he sees that in

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Speaker 8: Jordan's interests or in Arab states interests, but he'll emphasize

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Speaker 8: the dangers as far as he's concerned and as far

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Speaker 8: as the Abwald is concerned of this plan happening. For

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Speaker 8: a start, they'll see it as forced a displacement of

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Speaker 8: Palestinians from from from Gaza, effectively ending any hopes of

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Speaker 8: a two states solution. They will also emphasize that it

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Speaker 8: will imperil the sort of internal security of both Jordan

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Speaker 8: and Egypt because they wouldn't be able to cope with

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Speaker 8: a huge influx of Palestinians. You mentioned Donald Trump threatening

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Speaker 8: to cut off aid. There Between them, Egypt and Jordan

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Speaker 8: get about three billion dollars a year. That's certainly not nothing,

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Speaker 8: but it's not a huge amount. I mean to put

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Speaker 8: it into context. The UAE alone invested about thirty five

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Speaker 8: billion dollars in the UAE in Egypt last year. The

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Speaker 8: IMF has an eight billion dollar program with with with Egypt.

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Speaker 8: So Egypt could probably cope without, you know, a billion

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Speaker 8: and a half dollars a year from from from the UA,

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Speaker 8: and Jordan gets around the same amount, and it might

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Speaker 8: be you know, slightly more painful for Jordan. But Trump

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Speaker 8: doesn't have total leverage over them, and there will certainly

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Speaker 8: be people within his administration that realize that anything that

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Speaker 8: destabilizes Jordan and Egypt is probably not going to be

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Speaker 8: in the US interests.

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Speaker 1: What is the alternative plan for Gaza that would be

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Speaker 1: supported by the neighbors, by its neighbors and then at

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Speaker 1: least so this.

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Speaker 8: Is a good question, and its possible that King Abdullah

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Speaker 8: of Jordan will be going to Trump with a proposal

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Speaker 8: and some of Trump's aides have been saying, look, the

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Speaker 8: Arab governments need not just to criticize Trump's proposal, but

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Speaker 8: to come up with an alternative. What they're saying, broadly

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Speaker 8: is that Palestinians must be allowed to stay in Gaza,

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Speaker 8: that the territory can be rebuilt with them staying there.

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Speaker 8: It needs obviously a huge amount of money. We're talking

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Speaker 8: to ens of billions of dollars, and even in the

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Speaker 8: best case scenario, it would take years and years for

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Speaker 8: Gaza to get to anything like a normal state in

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Speaker 8: terms of its infrastructure. But that's broadly what the Arab

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Speaker 8: states are saying. They're saying, don't force any Palestinians out.

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Speaker 8: We can rebuild the territory with them. They're a huge

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Speaker 8: issue though, and no one I don't think has even

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Speaker 8: close to an answer for this yet, is who governs

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Speaker 8: the territory. Hamas is clearly still in charge for all

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Speaker 8: that it's been weakened in the last sixteen months. That's

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Speaker 8: simply unacceptable to Israel, to the US, and frankly, most

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Speaker 8: Ab states don't want Hamas in charge. They want something

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Speaker 8: like the Palestinian Authority to take over. And the PA

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Speaker 8: said It's Prime minister said in an interview with Bloomberg

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Speaker 8: very recently that that's what they want and they believe

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Speaker 8: they have the ability to do that, but it's very

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Speaker 8: unclear if that's possible. And as I said, Hamas is

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Speaker 8: still there. It's still the main, most powerful group in

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Speaker 8: Gaza and that probably needs to change for proper reconstruction

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Speaker 8: to happen in Gaza.

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