1
00:00:02,400 --> 00:00:10,160
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

2
00:00:10,240 --> 00:00:13,200
Speaker 1: Day ba QT podcast, available every morning on Apple, Spotify

3
00:00:13,280 --> 00:00:16,120
Speaker 1: or wherever you listen. It's Wednesday, the fifteenth of January

4
00:00:16,160 --> 00:00:18,080
Speaker 1: in London. I'm Caroline Hepki.

5
00:00:17,960 --> 00:00:18,960
Speaker 2: And I'm Stephen Carroll.

6
00:00:19,040 --> 00:00:19,800
Speaker 3: Coming up today.

7
00:00:20,000 --> 00:00:24,239
Speaker 2: South Korea's president yunsukkiul is arrested over an investigation into

8
00:00:24,239 --> 00:00:25,760
Speaker 2: his martial law declaration.

9
00:00:26,200 --> 00:00:30,400
Speaker 1: The UK's city minister resigns after an ethics review amid

10
00:00:30,480 --> 00:00:32,440
Speaker 1: pressure on the labor government.

11
00:00:32,320 --> 00:00:35,120
Speaker 2: And a last minute push from Joe Biden. The outgoing

12
00:00:35,240 --> 00:00:39,199
Speaker 2: US president plans new rules to limit chip exports to China.

13
00:00:39,440 --> 00:00:41,360
Speaker 1: Let's start with a roundup of our top stories.

14
00:00:41,600 --> 00:00:45,440
Speaker 2: South Korea's president yunsukkiul, has been arrested over his brief

15
00:00:45,479 --> 00:00:50,040
Speaker 2: declaration of martial law last month, anti corruption investigators detained

16
00:00:50,040 --> 00:00:52,760
Speaker 2: the leader in a raid before dawn. In a video

17
00:00:52,800 --> 00:00:55,560
Speaker 2: message recorded before he was led away, Yun said the

18
00:00:55,640 --> 00:00:58,960
Speaker 2: rule of law in the country had completely collapsed.

19
00:00:58,800 --> 00:01:03,040
Speaker 4: And today I witnessed them forcibly breaching a secured zone

20
00:01:03,200 --> 00:01:07,520
Speaker 4: using firefighting equipment to prevent any unsavory bloodshed, I have

21
00:01:07,560 --> 00:01:10,679
Speaker 4: decided to comply with the summons by the Corruption Investigation

22
00:01:10,760 --> 00:01:14,920
Speaker 4: Office despite their investigation being illegal. However, I am not

23
00:01:15,040 --> 00:01:17,200
Speaker 4: acknowledging the CIO's investigation.

24
00:01:17,680 --> 00:01:22,200
Speaker 2: Mind Jimaranan Yun has been stripped of presidential powers and

25
00:01:22,280 --> 00:01:26,039
Speaker 2: now a way to formal impeachment trial. Investigators are examining

26
00:01:26,040 --> 00:01:28,720
Speaker 2: whether his martial law declaration amounts to an act of

27
00:01:28,880 --> 00:01:32,279
Speaker 2: insurrection that Yun has argued it was within his power

28
00:01:32,360 --> 00:01:34,320
Speaker 2: as president to issue the order.

29
00:01:35,200 --> 00:01:39,200
Speaker 1: To the UK where the City Minister has resigned from government,

30
00:01:39,240 --> 00:01:42,880
Speaker 1: Tulip Sadik will be replaced by former city lobbyist Emma

31
00:01:42,920 --> 00:01:47,800
Speaker 1: Reynolds after an ethics review into allegations around Sadiq's use

32
00:01:47,800 --> 00:01:52,160
Speaker 1: and receipt of properties linked to the ousted Bangladeshi regime.

33
00:01:52,800 --> 00:01:55,120
Speaker 1: Though the pro found that she had not breached them

34
00:01:55,120 --> 00:01:58,840
Speaker 1: in asterial code, Sadik says she's stepped down to avoid

35
00:01:58,880 --> 00:02:02,600
Speaker 1: becoming a distract. The news comes as Chancellor Rachel Reeves

36
00:02:02,640 --> 00:02:06,240
Speaker 1: tried to calm investors spooked by a surge in UK

37
00:02:06,400 --> 00:02:10,000
Speaker 1: borrowing costs and a head of crucial inflation data. Dude

38
00:02:10,000 --> 00:02:13,519
Speaker 1: this morning, I set out the fiscal rules of this

39
00:02:13,720 --> 00:02:16,720
Speaker 1: government at the budget in October that will pay for

40
00:02:16,800 --> 00:02:19,040
Speaker 1: day to day spending through tax receipts, and that we

41
00:02:19,080 --> 00:02:21,440
Speaker 1: will get deep down as a share of the economy.

42
00:02:21,600 --> 00:02:24,040
Speaker 1: We remain committed to those fiscal rules and we will

43
00:02:24,080 --> 00:02:28,080
Speaker 1: meet them at all times, Rachel reeves, speaking in Parliament yesterday.

44
00:02:28,200 --> 00:02:31,639
Speaker 1: There is still potential for the market pressure to intensify

45
00:02:31,680 --> 00:02:34,280
Speaker 1: again this week, with economists warning that the Bank of

46
00:02:34,320 --> 00:02:37,200
Speaker 1: England could be forced to intervene if we see a

47
00:02:37,400 --> 00:02:41,680
Speaker 1: higher than expected inflation print today, combined with weaker growth

48
00:02:41,840 --> 00:02:43,720
Speaker 1: data which is due out on Thursday.

49
00:02:45,040 --> 00:02:47,760
Speaker 2: In the US, the Biden administration is planning to impose

50
00:02:47,880 --> 00:02:51,960
Speaker 2: tough new rules on exporting advanced chips to China. Bloomberg

51
00:02:52,000 --> 00:02:54,080
Speaker 2: has learned the White House intends to announce the measures

52
00:02:54,080 --> 00:02:57,000
Speaker 2: in the last few days of the current presidency. The

53
00:02:57,120 --> 00:03:00,960
Speaker 2: changes would require a license to sell semiconductor with processing

54
00:03:01,000 --> 00:03:04,040
Speaker 2: power below a fourteen nanometer threshold.

55
00:03:04,840 --> 00:03:08,480
Speaker 1: Donald Trump's pick to run the Pentagon appears on course

56
00:03:08,520 --> 00:03:11,960
Speaker 1: to get the job. After a US Senate hearing, Republicans

57
00:03:12,040 --> 00:03:16,600
Speaker 1: rallied around Pete Hegseth, who dismissed accusations have passed the

58
00:03:16,639 --> 00:03:20,200
Speaker 1: alcohol abuse, sexual misconduct, and financial mismanagement.

59
00:03:20,919 --> 00:03:25,480
Speaker 5: What became very evident to us from the beginning. There

60
00:03:25,520 --> 00:03:29,600
Speaker 5: was a coordinated smear campaign orchestrated in the media against

61
00:03:29,720 --> 00:03:33,320
Speaker 5: US that was clear from moment one.

62
00:03:35,040 --> 00:03:39,200
Speaker 1: A former Fox News host Peter Hegseth, and his confirmation

63
00:03:39,320 --> 00:03:42,440
Speaker 1: is seen as a sign of the present elects power.

64
00:03:42,640 --> 00:03:45,960
Speaker 1: Donald Trump says that he will create an external revenue

65
00:03:46,000 --> 00:03:50,800
Speaker 1: service tasked with collecting tariffs on foreign imports and lists

66
00:03:50,800 --> 00:03:54,280
Speaker 1: and Democrats have pointed out that tariffs are already collected

67
00:03:54,480 --> 00:03:57,240
Speaker 1: by the US Customs and Border Protection Agency.

68
00:03:58,120 --> 00:04:01,360
Speaker 2: US consumer prices are expected to show a fifth month

69
00:04:01,440 --> 00:04:06,120
Speaker 2: of increases as the market bets on inflation fears. Analysts

70
00:04:06,120 --> 00:04:08,760
Speaker 2: expect the Bureau of Labor Statistics to report a zero

71
00:04:08,800 --> 00:04:12,880
Speaker 2: point three percent rise in core inflation later today. If correct,

72
00:04:12,920 --> 00:04:15,600
Speaker 2: the data would boost the case for an extended pause

73
00:04:15,680 --> 00:04:18,920
Speaker 2: in Federal Reserve interest rate cuts. The figures come at

74
00:04:18,920 --> 00:04:21,880
Speaker 2: a critical time for investors and policymakers, with a yield

75
00:04:22,000 --> 00:04:25,160
Speaker 2: on tenure Treasury notes of more than half a percentage

76
00:04:25,160 --> 00:04:26,560
Speaker 2: point since the last print.

77
00:04:27,320 --> 00:04:30,400
Speaker 1: The European Central Bank is pushing back against investors who

78
00:04:30,400 --> 00:04:33,559
Speaker 1: think that rate cuts are off the table. Markets see

79
00:04:33,560 --> 00:04:37,560
Speaker 1: firm inflation, a stronger US jobs market, and Donald Trump's

80
00:04:37,600 --> 00:04:42,080
Speaker 1: economic disruption, keeping interest rates high around the world, but

81
00:04:42,160 --> 00:04:45,040
Speaker 1: Finland's only ren is one of a number of ECB

82
00:04:45,160 --> 00:04:48,599
Speaker 1: policymakers pointing to the growth outlook.

83
00:04:48,760 --> 00:04:55,200
Speaker 6: Infatally stabilizing at our two percent target. Employment is holding

84
00:04:55,279 --> 00:04:58,960
Speaker 6: up its robust on the mines side. The growth outwalk

85
00:04:59,360 --> 00:05:02,200
Speaker 6: has served weekend. It's so fully subdued too.

86
00:05:02,440 --> 00:05:05,480
Speaker 1: Oliven, speaking to Bloomberg there earlier this week, he was

87
00:05:05,560 --> 00:05:09,239
Speaker 1: joined by Francois Villewar de Gallo and Janis so Naras,

88
00:05:09,600 --> 00:05:13,239
Speaker 1: who have doubled down on forecasts of one hundred basis

89
00:05:13,279 --> 00:05:17,000
Speaker 1: point cuts for the ECB by the middle of the year.

90
00:05:17,839 --> 00:05:20,320
Speaker 2: And dozens of people are missing in Los Angeles as

91
00:05:20,400 --> 00:05:25,200
Speaker 2: high winds raise further wildfire risks. Around two million people

92
00:05:25,240 --> 00:05:29,280
Speaker 2: are facing extreme fire conditions, with eighty eight thousand residents

93
00:05:29,720 --> 00:05:34,560
Speaker 2: under evacuation orders and another almost eighty five thousand under warnings.

94
00:05:34,920 --> 00:05:37,720
Speaker 2: President Biden has offered his support to those affected.

95
00:05:38,560 --> 00:05:40,640
Speaker 7: The heart of the nation are with the victims and

96
00:05:40,680 --> 00:05:44,800
Speaker 7: families left behind and all the people who've lost their homes,

97
00:05:44,880 --> 00:05:48,320
Speaker 7: lotteries in so much, so much to these fires. In

98
00:05:48,440 --> 00:05:52,159
Speaker 7: another reminder, tragedies like this is not about blue states

99
00:05:52,160 --> 00:05:56,080
Speaker 7: and red states, not about conservats and liberals. It's about

100
00:05:56,120 --> 00:05:57,560
Speaker 7: the United States of America.

101
00:05:58,960 --> 00:06:01,760
Speaker 2: President Joe Biden was speaking as conditions are expected to

102
00:06:01,839 --> 00:06:05,000
Speaker 2: improve towards the end of the week, giving authorities a

103
00:06:05,000 --> 00:06:08,520
Speaker 2: better chance to control the blazers, which have already killed

104
00:06:08,560 --> 00:06:11,920
Speaker 2: twenty four people. Total losses for the insurance industry as

105
00:06:11,920 --> 00:06:13,880
Speaker 2: a result of the destruction are estimated to be as

106
00:06:13,960 --> 00:06:18,119
Speaker 2: high as forty billion dollars according to analysts.

107
00:06:18,720 --> 00:06:21,200
Speaker 1: Those are our top stories for you this morning. In

108
00:06:21,279 --> 00:06:24,280
Speaker 1: terms of the markets, Asian stocks seeing some pretty choppy

109
00:06:24,360 --> 00:06:28,840
Speaker 1: trading ahead of the US CPI print today. You've got

110
00:06:28,880 --> 00:06:32,159
Speaker 1: the MSCI Asia Pacific Index currently in the red chares

111
00:06:32,200 --> 00:06:35,479
Speaker 1: of TSMC falling two percent after that news out of

112
00:06:35,480 --> 00:06:39,000
Speaker 1: the US. The push to tightened chip flows to China,

113
00:06:39,120 --> 00:06:43,880
Speaker 1: the PBOC in China's dialed up liquidity injections. Also, when

114
00:06:43,880 --> 00:06:46,960
Speaker 1: it comes to Japan, the BOJ policymaker a way to

115
00:06:47,080 --> 00:06:50,000
Speaker 1: keeping the door open for a genuine interest rate hike.

116
00:06:50,600 --> 00:06:53,479
Speaker 1: The Japanese yen strengthening this morning, up four tenths of

117
00:06:53,520 --> 00:06:56,080
Speaker 1: one percent, two year Japanese bond deals rising to the

118
00:06:56,120 --> 00:07:00,599
Speaker 1: highest since two thousand and eight. Yesterday. Of course, in

119
00:07:00,680 --> 00:07:03,440
Speaker 1: terms of the other main story in markets, thirty year

120
00:07:03,480 --> 00:07:06,800
Speaker 1: treasury yields touch five percent again the second time this week.

121
00:07:07,040 --> 00:07:09,120
Speaker 1: The guilt route took a bit of a pause. The

122
00:07:09,200 --> 00:07:12,040
Speaker 1: dollar fell yesterday. The Bloomberg Dollar Spot index this morning

123
00:07:12,120 --> 00:07:15,320
Speaker 1: is down again. And looking at stock futures for the

124
00:07:15,360 --> 00:07:19,200
Speaker 1: European market open currently we're down the sorry, we're upper

125
00:07:19,280 --> 00:07:21,280
Speaker 1: tenth of one percent, so those the markets.

126
00:07:21,520 --> 00:07:23,200
Speaker 2: In a moment, we'll bring you more on the arrest

127
00:07:23,240 --> 00:07:27,320
Speaker 2: of South Korea's impeached president, plus what the latest we've

128
00:07:27,360 --> 00:07:29,760
Speaker 2: heard from the US and those moves to try and

129
00:07:29,760 --> 00:07:33,960
Speaker 2: limit exports of chips to China. And we'll also be

130
00:07:34,000 --> 00:07:37,160
Speaker 2: discussing the resignation of the City Minister here in the UK.

131
00:07:37,280 --> 00:07:41,840
Speaker 2: But it's actually another story that I wanted to talk

132
00:07:41,880 --> 00:07:44,000
Speaker 2: about first to do with the UK, and this is

133
00:07:44,080 --> 00:07:46,440
Speaker 2: to do with the AI Strategy, one of the big

134
00:07:46,480 --> 00:07:49,400
Speaker 2: parts of the government's plans to create growth in the UK,

135
00:07:49,600 --> 00:07:52,720
Speaker 2: unveiled earlier this week. Bloomberg Opinions columnist parme Olsen has

136
00:07:52,760 --> 00:07:56,560
Speaker 2: been giving her take of the new plan and essentially

137
00:07:56,840 --> 00:07:58,880
Speaker 2: she sees it as a bit of a misfire by

138
00:07:58,920 --> 00:08:01,720
Speaker 2: the government. She says the strength that the UK has

139
00:08:01,800 --> 00:08:05,560
Speaker 2: has always been that middle ground in terms of regulation

140
00:08:06,200 --> 00:08:11,280
Speaker 2: between the US and the EU. But Kirstarmer's plan is vague,

141
00:08:11,520 --> 00:08:15,520
Speaker 2: it doesn't contain numbers that seem achievable and doesn't account

142
00:08:15,640 --> 00:08:19,120
Speaker 2: for when trying to calculate the economic benefits that investment

143
00:08:19,200 --> 00:08:21,360
Speaker 2: now might take years to pay off down the line.

144
00:08:21,680 --> 00:08:21,960
Speaker 8: Yeah.

145
00:08:22,000 --> 00:08:25,480
Speaker 1: Absolutely, I think that we did a whole number of interviews,

146
00:08:25,480 --> 00:08:27,960
Speaker 1: didn't we around that AI strategy that was on veiled.

147
00:08:28,000 --> 00:08:32,080
Speaker 1: The government is under pressure to deliver on some of

148
00:08:32,120 --> 00:08:34,760
Speaker 1: its promises. When we spoke to a number of people

149
00:08:34,760 --> 00:08:39,440
Speaker 1: involved in artificial intelligence, they did seem to be making

150
00:08:39,480 --> 00:08:46,080
Speaker 1: this clear request for more clarity for a strong kind

151
00:08:46,080 --> 00:08:51,160
Speaker 1: of guideline guardrail really from the UK government on Monday,

152
00:08:51,600 --> 00:08:54,360
Speaker 1: I mean, Palme also making this point that actually Britain

153
00:08:54,440 --> 00:08:57,920
Speaker 1: has this leading role as a safety regulator, that more

154
00:08:57,960 --> 00:09:00,560
Speaker 1: should be made of that. But it's certainly does seem

155
00:09:00,559 --> 00:09:02,880
Speaker 1: that the industry had high popes and they haven't got it.

156
00:09:03,040 --> 00:09:05,240
Speaker 1: Maybe the government though, is caught up obviously given the

157
00:09:05,320 --> 00:09:07,320
Speaker 1: market ternel that we've seen in the last week to

158
00:09:07,360 --> 00:09:08,000
Speaker 1: ten days.

159
00:09:08,160 --> 00:09:11,240
Speaker 2: Yeah, indeed, and of course the CPI figures out this

160
00:09:11,320 --> 00:09:14,839
Speaker 2: morning as well. Going to add to the focus on

161
00:09:14,880 --> 00:09:17,600
Speaker 2: the UK economy, let's turn those to South Korea first

162
00:09:17,600 --> 00:09:21,960
Speaker 2: to an investor where investigators have arrested President unsukiol over

163
00:09:22,000 --> 00:09:24,679
Speaker 2: his brief declaration of martial law just over a month ago,

164
00:09:24,800 --> 00:09:27,920
Speaker 2: our reporter Sam came joins us from sold for more Sam,

165
00:09:27,920 --> 00:09:30,640
Speaker 2: thanks for joining us. This was the second attempt to

166
00:09:30,760 --> 00:09:32,480
Speaker 2: arrest the impeached leader.

167
00:09:32,720 --> 00:09:38,440
Speaker 9: What happened, well, basically, it all began with Yune declaring

168
00:09:38,520 --> 00:09:41,000
Speaker 9: martial law on December third, in the middle of the night,

169
00:09:41,760 --> 00:09:45,800
Speaker 9: where he sent troops to the National Assembly, which is

170
00:09:45,840 --> 00:09:49,440
Speaker 9: a place that he called a den of criminals that

171
00:09:49,520 --> 00:09:52,280
Speaker 9: houses pro North Korea sympathizers.

172
00:09:52,280 --> 00:09:56,000
Speaker 3: Trying to paralyze the government. The opposition quickly ended.

173
00:09:55,840 --> 00:09:59,320
Speaker 10: The martial law in position with emotion and ever since,

174
00:09:59,440 --> 00:10:04,200
Speaker 10: you know, they the opportunity has charged with insurrection and

175
00:10:04,280 --> 00:10:08,320
Speaker 10: this charge allows for an investigation against a sitting president

176
00:10:09,160 --> 00:10:12,959
Speaker 10: within the constitution. So prosecutors sought to question him, which

177
00:10:13,040 --> 00:10:16,439
Speaker 10: Jun refused, So prosecutors managed to secure.

178
00:10:16,080 --> 00:10:17,560
Speaker 3: An arrest ward against him.

179
00:10:17,800 --> 00:10:20,720
Speaker 10: But the first attempt to detain Yun for questioning fail

180
00:10:21,200 --> 00:10:24,040
Speaker 10: and you know now the second attempt, which took place today,

181
00:10:24,120 --> 00:10:28,680
Speaker 10: it turned out to be a success, with presidential guards

182
00:10:28,720 --> 00:10:33,000
Speaker 10: apparently opening the pathway to June's residents, possibly either because

183
00:10:33,080 --> 00:10:36,640
Speaker 10: June didn't want to risk a physical conflict with prosecutors

184
00:10:36,640 --> 00:10:41,240
Speaker 10: and police, or because the police were determined, determined enough

185
00:10:41,280 --> 00:10:45,680
Speaker 10: to brave such a conflict and the presidential guards backed off. Basically,

186
00:10:46,160 --> 00:10:49,240
Speaker 10: more details of what happened will emerge in coming hours

187
00:10:49,240 --> 00:10:50,000
Speaker 10: and days.

188
00:10:51,000 --> 00:10:55,760
Speaker 1: But what happens now in terms of the investigation against him.

189
00:10:56,440 --> 00:10:59,720
Speaker 10: June will be in police custody for forty eight hours.

190
00:11:00,160 --> 00:11:03,640
Speaker 10: During that period, the team of anti corruption prosecutors will

191
00:11:03,840 --> 00:11:08,200
Speaker 10: likely see, you know, try to get another arrest warrant

192
00:11:08,240 --> 00:11:11,040
Speaker 10: that would allow them to detain him for up to

193
00:11:11,080 --> 00:11:14,360
Speaker 10: twenty days, and that would put Yun behind bars, and

194
00:11:14,440 --> 00:11:17,000
Speaker 10: that would make him the first president in career's history

195
00:11:17,400 --> 00:11:19,839
Speaker 10: to be jail while he's in office. Even though the

196
00:11:19,880 --> 00:11:23,960
Speaker 10: impeachment motion passed against him last month has already suspended

197
00:11:24,000 --> 00:11:25,280
Speaker 10: him from duty.

198
00:11:25,920 --> 00:11:27,800
Speaker 3: For now, we're hearing reports that.

199
00:11:27,800 --> 00:11:31,880
Speaker 10: UN's exercising his right to remain silent, and at.

200
00:11:31,800 --> 00:11:34,080
Speaker 3: The same time, there's a separate.

201
00:11:33,880 --> 00:11:37,880
Speaker 10: Legal proceeding going on against him at the Constitutional Court,

202
00:11:37,920 --> 00:11:41,280
Speaker 10: which has several months to determine if the impeachment motion

203
00:11:41,520 --> 00:11:42,720
Speaker 10: against him is valid.

204
00:11:43,160 --> 00:11:44,720
Speaker 3: If the court says yes.

205
00:11:45,120 --> 00:11:48,000
Speaker 10: Yun will no longer be president, and there'll be a

206
00:11:48,040 --> 00:11:49,800
Speaker 10: snap election to replace Yun.

207
00:11:51,320 --> 00:11:53,640
Speaker 2: What does all of this mean for the running of

208
00:11:53,679 --> 00:11:55,079
Speaker 2: the country and the economy.

209
00:11:56,640 --> 00:11:59,920
Speaker 10: Well, if this snap election is held, we're likely to

210
00:12:00,160 --> 00:12:05,280
Speaker 10: see a variety of presidential runners trying to replace Yun,

211
00:12:05,520 --> 00:12:09,640
Speaker 10: and one of those would likely be the main opposition

212
00:12:09,760 --> 00:12:13,160
Speaker 10: chief name Ijmong, because he's been the front runner in

213
00:12:13,280 --> 00:12:17,000
Speaker 10: presidential polls for some months now. It's kind of unclear

214
00:12:17,120 --> 00:12:21,520
Speaker 10: who would represent Jun's block, But if polls are a

215
00:12:21,600 --> 00:12:25,120
Speaker 10: decent guide of what's to happen, the next president of

216
00:12:25,120 --> 00:12:27,480
Speaker 10: the country is likely to be someone who has been

217
00:12:27,559 --> 00:12:31,000
Speaker 10: at odds with Jun over a variety of policies, from

218
00:12:31,040 --> 00:12:34,240
Speaker 10: taxes to physical policy to relations with the US and China.

219
00:12:34,800 --> 00:12:36,640
Speaker 10: So you can kind of expect a reversal of a

220
00:12:36,640 --> 00:12:39,240
Speaker 10: lot of the policies that we've been seeing under Yun.

221
00:12:39,800 --> 00:12:41,640
Speaker 10: And of course it would mean a certain level of

222
00:12:41,720 --> 00:12:46,200
Speaker 10: disruption of continuity in economic policy, and that would vote

223
00:12:46,280 --> 00:12:49,800
Speaker 10: so well for South Korea when expert growth is moderating

224
00:12:49,840 --> 00:12:52,959
Speaker 10: and the country is concerned already about tariff plans by

225
00:12:53,000 --> 00:12:56,120
Speaker 10: Donald Trump, who's coming back to office next week.

226
00:12:56,640 --> 00:12:57,000
Speaker 3: Yeah.

227
00:12:57,040 --> 00:12:59,640
Speaker 1: Absolutely, Sam, Thank you so much for being with us

228
00:13:00,080 --> 00:13:03,680
Speaker 1: learning the situation in South Korea. Are reporter Sam Kim

229
00:13:03,720 --> 00:13:05,800
Speaker 1: there joining us at Live from soul.

230
00:13:06,040 --> 00:13:08,360
Speaker 2: Here in the UK, the city minister has resigned from

231
00:13:08,360 --> 00:13:11,320
Speaker 2: her job after an ethics review into allegations around her

232
00:13:11,440 --> 00:13:14,880
Speaker 2: use and receipt of properties linked to the ousted Bangladeshi regime.

233
00:13:15,360 --> 00:13:19,200
Speaker 2: Ulipsidik quit despite being cleared of wrongdoing and an investigation,

234
00:13:19,360 --> 00:13:22,120
Speaker 2: saying she was acting to avoid distraction for the government

235
00:13:22,559 --> 00:13:25,360
Speaker 2: at a time when labors under pressure over the fiscal situation.

236
00:13:25,480 --> 00:13:28,440
Speaker 2: Our reporter to at Bio is here with more tiwa

237
00:13:28,520 --> 00:13:30,400
Speaker 2: why did Tulipsidik resign?

238
00:13:30,480 --> 00:13:30,720
Speaker 3: Now?

239
00:13:31,480 --> 00:13:33,680
Speaker 11: This is a saga that's been going on really for

240
00:13:33,760 --> 00:13:36,600
Speaker 11: quite a while now. The Prime Minister has been facing

241
00:13:36,679 --> 00:13:39,640
Speaker 11: calls to dismiss her for months, and that's because, as

242
00:13:39,640 --> 00:13:43,720
Speaker 11: you mentioned, ongoing allegations that she's benefited from properties that

243
00:13:43,920 --> 00:13:47,079
Speaker 11: may have been acquired with funds embezzled by the regime

244
00:13:47,120 --> 00:13:51,320
Speaker 11: of Sheik Hasina in Bangladesh. That's Ulipsidik's aunt, and these

245
00:13:51,400 --> 00:13:54,640
Speaker 11: calls are coming, especially because part of her brief as

246
00:13:54,679 --> 00:13:58,880
Speaker 11: a city minister included in that was fighting corruption. It

247
00:13:58,960 --> 00:14:01,640
Speaker 11: seems things might have finally come to a head as

248
00:14:01,679 --> 00:14:04,440
Speaker 11: those cause have kept getting louder, and last week she

249
00:14:04,559 --> 00:14:09,000
Speaker 11: did refer herself to the Prime Minister's advisor on ministerial interests,

250
00:14:09,200 --> 00:14:13,240
Speaker 11: Laurie Magnus. Now Luri Magnus said in his review, his

251
00:14:13,360 --> 00:14:16,840
Speaker 11: formal review into this matter, that there was no wrongdoing,

252
00:14:16,880 --> 00:14:20,280
Speaker 11: no financial impropriety on the part of Tulip Sadik, but

253
00:14:20,480 --> 00:14:23,520
Speaker 11: he did say that her involvement in the scandal was

254
00:14:23,640 --> 00:14:28,640
Speaker 11: regrettable given her ministerial position. So she says she's resigning

255
00:14:28,680 --> 00:14:32,800
Speaker 11: now to avoid becoming a further distraction to government work

256
00:14:32,840 --> 00:14:33,840
Speaker 11: and the work of the Treasury.

257
00:14:34,440 --> 00:14:38,480
Speaker 1: So she's being replaced by Emma Reynolds, someone with links

258
00:14:38,480 --> 00:14:40,920
Speaker 1: of the financial services sector, quite well known in the

259
00:14:40,920 --> 00:14:41,600
Speaker 1: City of London.

260
00:14:41,680 --> 00:14:42,680
Speaker 8: Yeah, that's right, Caroline.

261
00:14:42,680 --> 00:14:46,080
Speaker 11: So Emma Reynolds. Until last year she was the chief

262
00:14:46,120 --> 00:14:49,400
Speaker 11: lobbyist for the City UK, which is a trade group

263
00:14:49,400 --> 00:14:52,920
Speaker 11: that represents banks here in London's financial center. Now this

264
00:14:53,000 --> 00:14:56,520
Speaker 11: appointment shows that the government is keen to still uphold

265
00:14:56,560 --> 00:14:59,440
Speaker 11: those links with the City of London, particularly at a

266
00:14:59,480 --> 00:15:03,000
Speaker 11: time and as the Chancellor and other ministers have hammered

267
00:15:03,000 --> 00:15:05,920
Speaker 11: home in recent weeks, they're really trying to harness the

268
00:15:06,000 --> 00:15:09,920
Speaker 11: power of the UK's financial sector to drive economic growth,

269
00:15:09,960 --> 00:15:12,680
Speaker 11: which has proven elusive so far, and there's no doubt

270
00:15:12,680 --> 00:15:15,080
Speaker 11: the Prime Minister will be hoping that Reynolds can leverage

271
00:15:15,080 --> 00:15:18,000
Speaker 11: some of those city links and contacts to help with

272
00:15:18,080 --> 00:15:18,600
Speaker 11: that mission.

273
00:15:19,440 --> 00:15:22,200
Speaker 2: Tima, What does this news mean for the government at

274
00:15:22,240 --> 00:15:25,000
Speaker 2: a time when they're facing many other challenges as we've

275
00:15:25,000 --> 00:15:25,680
Speaker 2: been reporting.

276
00:15:26,080 --> 00:15:28,880
Speaker 11: Oh, this really couldn't be coming out of worse time

277
00:15:29,320 --> 00:15:32,240
Speaker 11: for the government, especially the Treasury. It was just in

278
00:15:32,320 --> 00:15:35,160
Speaker 11: November last year that the last high profile minister quit,

279
00:15:35,200 --> 00:15:38,400
Speaker 11: that's Louise Haigu, the Transport Secretary, and now we've got

280
00:15:38,440 --> 00:15:41,560
Speaker 11: the City Minister resigning at a time when the Treasury

281
00:15:41,640 --> 00:15:45,360
Speaker 11: is facing really high levels of scrutiny. That's after the

282
00:15:45,440 --> 00:15:47,840
Speaker 11: huge spike in UK borrowing costs that we've seen over

283
00:15:47,840 --> 00:15:51,920
Speaker 11: the last week, and even questions about Rachel Reeves's future

284
00:15:52,360 --> 00:15:55,480
Speaker 11: in her role as Chancellor. So it's not an ideal

285
00:15:55,640 --> 00:15:59,440
Speaker 11: time for the government at all, especially as we're facing

286
00:15:59,520 --> 00:16:02,400
Speaker 11: a pivot economic data release today in the form of

287
00:16:02,480 --> 00:16:06,720
Speaker 11: the latest UK inflation numbers. We have the City Minister

288
00:16:06,840 --> 00:16:10,080
Speaker 11: stepping down on the eve of that important data release.

289
00:16:10,200 --> 00:16:13,760
Speaker 11: Not ideal for a government that's trying to communicate stability

290
00:16:14,240 --> 00:16:17,520
Speaker 11: and credibility to an already quite jittery UK market.

291
00:16:17,720 --> 00:16:20,200
Speaker 1: Yeah, the time is certainly strange. Tiwa, thank you so

292
00:16:20,320 --> 00:16:22,400
Speaker 1: much for being with us. That is our reporter Tia

293
00:16:22,480 --> 00:16:25,360
Speaker 1: at a bio there on the resignation of the City

294
00:16:25,400 --> 00:16:26,640
Speaker 1: Minister tu Lip Sadik.

295
00:16:27,240 --> 00:16:29,760
Speaker 2: The United States is planning to introduce new regulations to

296
00:16:29,760 --> 00:16:34,800
Speaker 2: prevent advanced chips being sold to China, targeting chip producers

297
00:16:34,800 --> 00:16:38,320
Speaker 2: like TSMC, Samsung and Intel. That's coming just days ahead

298
00:16:38,320 --> 00:16:41,200
Speaker 2: of Donald Trump taking office, with the incoming president saying

299
00:16:41,240 --> 00:16:44,760
Speaker 2: he wants to create an external revenue service to collect

300
00:16:44,800 --> 00:16:47,800
Speaker 2: tariffs on foreign imports. Are Emea and news director Rosla

301
00:16:47,840 --> 00:16:50,760
Speaker 2: maths Than joins us now for more. Raz good morning.

302
00:16:50,920 --> 00:16:53,040
Speaker 2: What are the new rules being planned by the Biden

303
00:16:53,080 --> 00:16:56,760
Speaker 2: administration targeting China? And I suppose how significant are they

304
00:16:56,800 --> 00:16:59,080
Speaker 2: given that we're only a couple of days away from

305
00:16:59,280 --> 00:17:00,920
Speaker 2: the innauguration of Donald Trump.

306
00:17:01,360 --> 00:17:02,040
Speaker 8: Well, it is all.

307
00:17:02,080 --> 00:17:04,040
Speaker 12: It's a part of this effort that seems to be

308
00:17:04,119 --> 00:17:07,159
Speaker 12: happening from the Biden administration in the waning days to

309
00:17:07,160 --> 00:17:10,240
Speaker 12: get as much stuff done as they can before they're

310
00:17:10,280 --> 00:17:12,199
Speaker 12: out the door. Breging the question why they didn't do

311
00:17:12,240 --> 00:17:16,359
Speaker 12: it really previously, but certainly very busy, you'd have to say,

312
00:17:16,880 --> 00:17:19,399
Speaker 12: in their final weeks on everything from the Middle East

313
00:17:19,520 --> 00:17:22,560
Speaker 12: to Cuba and to chips. And of course this comes

314
00:17:22,560 --> 00:17:26,280
Speaker 12: after the news on nvideo as well, which is about

315
00:17:26,320 --> 00:17:29,520
Speaker 12: managing the flow of AI chips, and this is in

316
00:17:29,600 --> 00:17:32,360
Speaker 12: the same realm. It's really about the very high end

317
00:17:32,840 --> 00:17:36,439
Speaker 12: of the chip market, so fourteen to sixteen nanometers or less,

318
00:17:37,480 --> 00:17:37,800
Speaker 12: you know.

319
00:17:37,880 --> 00:17:40,920
Speaker 8: Very powerful processing chips.

320
00:17:41,160 --> 00:17:46,399
Speaker 12: And it's less about penalizing but more about really encouraging

321
00:17:46,440 --> 00:17:50,359
Speaker 12: in a way and leaning on companies like TSMC to

322
00:17:50,640 --> 00:17:54,119
Speaker 12: explore their supply chain, where exactly are your chips going,

323
00:17:54,520 --> 00:17:58,399
Speaker 12: who are your customers, who are they selling onto? And

324
00:17:58,440 --> 00:18:02,240
Speaker 12: this follows, of course, the the news that some time

325
00:18:02,280 --> 00:18:06,399
Speaker 12: ago that TSMC chips turned up in Huawei kit And

326
00:18:06,440 --> 00:18:09,160
Speaker 12: that's the concern is that eventually these things find their

327
00:18:09,200 --> 00:18:13,080
Speaker 12: way through to some Chinese companies and it's about saying

328
00:18:13,119 --> 00:18:16,399
Speaker 12: to them, be very careful about your supply chain, workout

329
00:18:16,400 --> 00:18:18,840
Speaker 12: who your customers are when it comes to these very

330
00:18:18,880 --> 00:18:21,240
Speaker 12: high level chips. But this is more of an overlay

331
00:18:21,280 --> 00:18:23,680
Speaker 12: move than something very startling on its own.

332
00:18:24,640 --> 00:18:26,920
Speaker 1: The timing is important, isn't It's only a few days

333
00:18:26,960 --> 00:18:30,399
Speaker 1: until Donald Trump takes over. He is doubling down on

334
00:18:30,520 --> 00:18:32,440
Speaker 1: rhetoric around trade tariffs.

335
00:18:32,480 --> 00:18:33,600
Speaker 8: What more have we learned?

336
00:18:34,400 --> 00:18:37,240
Speaker 12: Well, he's talking about setting up this external revenue service,

337
00:18:37,520 --> 00:18:40,360
Speaker 12: which is a bit of a QT title to use,

338
00:18:40,400 --> 00:18:40,760
Speaker 12: but no.

339
00:18:40,760 --> 00:18:42,000
Speaker 8: More detail than that.

340
00:18:42,280 --> 00:18:45,800
Speaker 12: Is this just a way to describe what's already happening

341
00:18:45,840 --> 00:18:49,800
Speaker 12: because tariff's are already collected through the border, you know,

342
00:18:50,400 --> 00:18:53,520
Speaker 12: through the border mechanisms that exist, and it's only about

343
00:18:53,560 --> 00:18:58,040
Speaker 12: two percent obviously, and maybe he wants that to go up,

344
00:18:58,080 --> 00:19:00,359
Speaker 12: but you know there is a mechanism through custom stems

345
00:19:00,400 --> 00:19:05,480
Speaker 12: and border protection already. Is he describing something that already exists,

346
00:19:05,560 --> 00:19:09,920
Speaker 12: and anyway, you don't actually collect the revenue externally, it's

347
00:19:09,960 --> 00:19:13,840
Speaker 12: really collected from US consumers. And this is the broader

348
00:19:13,880 --> 00:19:20,320
Speaker 12: concern about tariffs and imposing blanket tariffs internationally, is that

349
00:19:20,400 --> 00:19:23,400
Speaker 12: the impact can be really felt on the US consumer

350
00:19:23,520 --> 00:19:27,000
Speaker 12: and then on inflation. And that's the boomerang effect of

351
00:19:27,119 --> 00:19:29,919
Speaker 12: tariffs that we're talking about. So this is really a

352
00:19:29,960 --> 00:19:34,040
Speaker 12: rhetorical flourish, if anything, from Donald Trump, and very unclear

353
00:19:34,160 --> 00:19:36,359
Speaker 12: if he means anything tangible to change.

354
00:19:36,560 --> 00:19:38,840
Speaker 2: I've been tracking, of course, all that commentary very closely

355
00:19:38,880 --> 00:19:41,359
Speaker 2: as we count down to the inauguration. Another story that

356
00:19:41,400 --> 00:19:45,080
Speaker 2: we have been following to do with Elon Mosque accused

357
00:19:45,119 --> 00:19:48,080
Speaker 2: by the SEC of cheating Twitter shareholders and the MOE

358
00:19:48,119 --> 00:19:51,399
Speaker 2: up to his takeover of the social media platform. Is

359
00:19:51,440 --> 00:19:53,919
Speaker 2: this going to be damaging from Mosque? And given his

360
00:19:54,000 --> 00:19:55,720
Speaker 2: proximity to Donald Trump.

361
00:19:55,840 --> 00:19:57,800
Speaker 12: Well, he sort of flagged a number of months ago

362
00:19:57,840 --> 00:20:00,640
Speaker 12: that this was in the wings, and from dating back

363
00:20:00,680 --> 00:20:04,119
Speaker 12: to obviously twenty twenty two, we know the SEC has

364
00:20:04,160 --> 00:20:09,960
Speaker 12: been looking at this acquisition and mainly about must transparency

365
00:20:10,359 --> 00:20:14,560
Speaker 12: or potential lack thereof through the process. It doesn't seem

366
00:20:14,600 --> 00:20:16,960
Speaker 12: to be inferring at this point that he did anything deliberate.

367
00:20:16,960 --> 00:20:19,800
Speaker 12: It's almost like they failed to file paperwork or something,

368
00:20:19,920 --> 00:20:22,600
Speaker 12: or you know, they're not saying that he was deplicitus here.

369
00:20:22,640 --> 00:20:25,800
Speaker 12: It's just that somewhere along the line, notifications weren't done

370
00:20:25,880 --> 00:20:28,560
Speaker 12: that should have been done in the process of building

371
00:20:29,119 --> 00:20:33,119
Speaker 12: stakes in companies, and therefore, if he had alerted the

372
00:20:33,160 --> 00:20:35,560
Speaker 12: world that he was building this stake, the shares would

373
00:20:35,560 --> 00:20:37,280
Speaker 12: have gone up and that would have had an impact

374
00:20:37,600 --> 00:20:43,000
Speaker 12: for others. And so it's the question of transparency. I mean,

375
00:20:43,080 --> 00:20:46,359
Speaker 12: does it really affect Musk. He faces lots of different

376
00:20:46,440 --> 00:20:48,760
Speaker 12: lawsuits every day, and.

377
00:20:48,720 --> 00:20:51,719
Speaker 8: He's a very wealthy man and a bit like Trump.

378
00:20:51,760 --> 00:20:55,840
Speaker 12: He likes to parlay these moments into you know, Brevardo

379
00:20:56,000 --> 00:20:59,320
Speaker 12: for himself, right, very much like Donald Trump says, Look,

380
00:20:59,359 --> 00:21:02,480
Speaker 12: I've got all these against me, their conspiracies against me.

381
00:21:02,760 --> 00:21:03,800
Speaker 8: I'm being targeted.

382
00:21:04,200 --> 00:21:06,520
Speaker 12: All I'm trying to do is you know, represent the

383
00:21:06,560 --> 00:21:09,800
Speaker 12: country or something, or do my business. And so very

384
00:21:09,880 --> 00:21:11,720
Speaker 12: much in the vein of that, you can imagine that

385
00:21:11,800 --> 00:21:13,800
Speaker 12: Musk is going to come out with that kind of

386
00:21:13,840 --> 00:21:16,800
Speaker 12: retrig Does it really impact him and his business in

387
00:21:16,800 --> 00:21:17,480
Speaker 12: a negative way?

388
00:21:17,560 --> 00:21:18,120
Speaker 8: Very unlikely.

389
00:21:18,720 --> 00:21:21,480
Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

390
00:21:21,520 --> 00:21:24,560
Speaker 2: stories making news from London to Wall Street and beyond.

391
00:21:24,840 --> 00:21:28,840
Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,

392
00:21:28,920 --> 00:21:30,880
Speaker 1: and anywhere else you get your podcasts.

393
00:21:30,920 --> 00:21:33,960
Speaker 2: You can also listen live each morning on London Dab Radio,

394
00:21:34,000 --> 00:21:37,760
Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

395
00:21:37,760 --> 00:21:40,560
Speaker 1: Our flagship New York station is also available on your

396
00:21:40,560 --> 00:21:45,280
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

397
00:21:45,520 --> 00:21:46,840
Speaker 1: I'm Caroline Hepka and.

398
00:21:46,760 --> 00:21:48,200
Speaker 2: I'm Stephen Carroll. Join us again.

399
00:21:48,240 --> 00:21:48,960
Speaker 8: Tomorrow morning.

400
00:21:49,040 --> 00:21:51,280
Speaker 2: For all the news you need to start your day

401
00:21:51,440 --> 00:21:52,919
Speaker 2: right here on Bloomberg Daybreak.

402
00:21:52,960 --> 00:22:00,119
Speaker 3: Europe m