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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Day Baker podcast. Kimoni's Finding the

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Speaker 2: twenty sixth of September. I'm Caroline Hepget in London. Coming

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Speaker 2: up today, President Trump announces a one hundred percent duty

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Speaker 2: on patented drugs made by pharmaceutical firms not building plants

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Speaker 2: in the US. The former FBI director James Comy is

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Speaker 2: charged with lying to Congress as the President cheers plus

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Speaker 2: ready to strike, Europeans privately tell Moscow they are prepared

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Speaker 2: to shoot down Russian jets that enter their airspace. Let's

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Speaker 2: start with a roundup of our top stories. President Trump

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Speaker 2: has unveiled a fresh round of tariffs, including a one

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Speaker 2: hundred percent levy on any branded or patented pharmaceutical product,

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Speaker 2: that is, unless a company is building a drugs manufacturing

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Speaker 2: plant in America. The move was one of several industry

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Speaker 2: focused tariffs and now by the President. In a post

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Speaker 2: on truth social President Trump announcer fifty percent tariff on

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Speaker 2: kitchen cabinets, thirty percent levee on upholstered furniture, and a

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Speaker 2: twenty five percent tariff on heavy trucks imported into the US.

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Speaker 2: New charges will take effect next week on the first

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Speaker 2: of October. Deborah Elms, head of trade policy at the

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Speaker 2: Heindrich Foundation, speaks, now.

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Speaker 3: This is an incredible, breathtaking expansion of tariff coverage that

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Speaker 3: will affect everyone, including those countries that thought that they

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Speaker 3: had a deal in place under those reciprocal tariffs that

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Speaker 3: are not covered by these sector specific new applications.

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Speaker 2: So that was Deborah Elms had a trade policy at

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Speaker 2: the Heinrich Foundation. According to Bloomberg Economics, the levee on

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Speaker 2: pharmaceuticals could raise the average US tariff rate by up

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Speaker 2: to three point three percentage points. However, the impact may

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Speaker 2: be offset by the exemption for companies building American manufacturing facilities.

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Speaker 2: Former FBI direct to James Comy has been charged with

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Speaker 2: lying to Congress and obstruction in relation to testimony that

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Speaker 2: he gave in twenty twenty. Comy told Congress that he

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Speaker 2: never authorized anyone at the FBI to be an anonymous

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Speaker 2: source in news reports. The current charges say that that

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Speaker 2: was false. It comes days after President Trump demanded legal

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Speaker 2: action against Comy and other perceived political enemies. Comey reacted

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Speaker 2: to the announcement on Instagram.

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Speaker 4: My family and I have known for years that there

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Speaker 4: are costs to standing up to Donald Trump, but we

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Speaker 4: couldn't imagine ourselves living any other way. We will not

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Speaker 4: live on our knees, and you shouldn't either. Somebody that

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Speaker 4: I love dearly recently said that fear is the tool

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Speaker 4: of a tyrant. And she's right. But I'm not afraid,

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Speaker 4: and I hope you're not either.

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Speaker 2: James Comy, speaking there as the US Justice Department said

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Speaker 2: that he could face up to five years in prison.

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Speaker 2: President Trump, mean while, reacted positively to the news on

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Speaker 2: truth social describing Comy as quote bad for our country.

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Speaker 2: European diplomats have privately warned the Kremlin that NATO is

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Speaker 2: ready to respond to further violations of its airspace by

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Speaker 2: shooting down Russian planes. Bloomberg understands that British, French and

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Speaker 2: German envoys had a meeting in Moscow about an incursion

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Speaker 2: by three fighter jets over Estonia last week, concluding after

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Speaker 2: the meeting that the violation was deliberate. Speaking to Bloomberg's

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Speaker 2: editor in chief, John Micklethwaite, the Secretary General Mark Ritchard

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Speaker 2: says that NATO is well prepared.

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Speaker 5: Our fighter jet miners not exactly what to do for

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Speaker 5: fifty years now, from the sophiet days to now is Russia.

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Speaker 5: We have had these incursions before. They will assess the

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Speaker 5: danger and if the danger is such that they feel

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Speaker 5: they really have to take down the plane, then they can.

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Speaker 5: But they've also decided that there's no imminent threat, and

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Speaker 5: then they will escort them outside off the airspace.

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Speaker 2: NATO Secretary General Mark Rutter speaking there, He also said

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Speaker 2: that Western militaries cannot afford to keep shooting down drones

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Speaker 2: with costly missiles. Russian officials have denied their planes crossed

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Speaker 2: into NATO airspace, and the Kremlin insists it's not trying

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Speaker 2: to test the alliance. One of the world's most closely

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Speaker 2: watched hedge fund managers is warning that unprecedented spending on

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Speaker 2: ai I may not pay off. Greenlight Capital founder David

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Speaker 2: Einhorn says that there's a reasonable chance that a tremendous

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Speaker 2: amount of capital destruction will occur.

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Speaker 6: So now we have open ai today, they're a trillion

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Speaker 6: and they have like ten billion of revenue, So I

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Speaker 6: don't know where the trillion is going to come from.

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Speaker 6: These aren't like, you know, a trillion dollars is basically

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Speaker 6: the book equity of the mag seven and opening. I

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Speaker 6: want us to invest in this much in the next

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Speaker 6: number of years in data centers. This seems really really

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Speaker 6: strange to me. It seems to be a continued competition

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Speaker 6: of people throwing out numbers which sound really really big

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Speaker 6: and really really exciting, that are not really measurable.

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Speaker 2: David Einhorn, who was speaking there to an audience at

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Speaker 2: the Simplify Asset Management event, he said that weak job

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Speaker 2: growth and stagnant productivity are signs that a recession may

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Speaker 2: be looming. Let's get to some news here in the UK.

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Speaker 2: When it's a Kiss, Starmer will announce a plan for

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Speaker 2: compulsory ID cards as part of efforts to tackle small

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Speaker 2: boat crossings. Blomberg has learned that every adult in Britain

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Speaker 2: will need a digital document to start a job or

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Speaker 2: rent a house. Silky Carlo from Big Brother Watch says

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Speaker 2: this run's counter to Britain's history of civil liberties.

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Speaker 7: Employers already have a legal duty to check people's right

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Speaker 7: to work. Starmer has absolutely no mandate for this. Nobody

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Speaker 7: voted for this. This wasn't in the labor manifesto.

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Speaker 2: The new scheme is kiss Starmer's latest attempt to reset

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Speaker 2: his government as political rivals like the Manchester mayor Andy

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Speaker 2: Burnham talk about replacing him. Bloomberg reported Kirstarma's allies had

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Speaker 2: been comparing the Manchester meir to Liz Truss, alleging that

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Speaker 2: he is a risk to bond markets. Liz Trust responded

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Speaker 2: to the Bloomberg story saying Burnham quote should be so lucky.

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Speaker 2: And lastly, corporate NEWSVW says it's cutting car production and

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Speaker 2: introducing temporary shutdowns at two German factories. Bloomberg's Mihul Kubala

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Speaker 2: has that story.

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Speaker 8: While VW is benefiting from growing electric vehicle sales in Europe,

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Speaker 8: the overall rise in demand for its evs is slower

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Speaker 8: than the German automaker had predicted. The two sides where

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Speaker 8: it is cutting output produce EV's exclusively, making them especially

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Speaker 8: vulnerable to fluctuations in demand for battery powered models. The

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Speaker 8: announcement comes despite new figures released yesterday showing an uptick

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Speaker 8: in EV sales. European consumers continued to warm to electric

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Speaker 8: and hybrid models produced by the region's manufacturers in their

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Speaker 8: right back against Chinese rivals. In Brussels, Michal kobala Bloomberg Radio.

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Speaker 2: So those are our top stories for you this morning.

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Speaker 2: Now President Trump back with further tariffs, the US stocks

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Speaker 2: healthcare index may underperform today. We've seen a sell off

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Speaker 2: in pharmaceutical and health stocks in Asia overnight. Stock futures

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Speaker 2: for Europe are up though over all half of one percent,

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Speaker 2: but we've seen the all country World index down a

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Speaker 2: tenth of one percent, the cost by slumping almost two

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Speaker 2: and a half percent this morning. We've also got, of

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Speaker 2: couse the PCE data, the inflation figures out on Friday.

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Speaker 2: Personal consumption expenditures expected to rise by two tenths of

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Speaker 2: one percent in August versus three tenths in July. And

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Speaker 2: in terms of the Fed money markets slightly cutting bets

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Speaker 2: on rate cut expectations forty basis points of this.

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Speaker 8: Year.

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Speaker 2: That's because of the strong GDP data we sort out

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Speaker 2: of the US yesterday. So those are the markets this morning.

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Speaker 2: Now in a moment, but we'll talk about NATO and

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Speaker 2: we'll also discuss the pharmaceutical levees that President Trump is

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Speaker 2: bringing in next week. But there's something else that caught

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Speaker 2: my eye, maybe a bit more fun, maybe a bit

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Speaker 2: louder and more raucous. So this is the Ryder Cup,

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Speaker 2: the forty fifth Ryder Cup that is taking place in

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Speaker 2: New York, haves every couple of years. Of course, cheers, boos, heckling.

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Speaker 2: It's going to be a wild weekend of golf. Our

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Speaker 2: opinion columnst Adam Mint has been writing about this, but

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Speaker 2: then I was also watching Carson Daily hosting the opening

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Speaker 2: ceremony event for the Ryder Cup. Of course it pits

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Speaker 2: a team of US golfers against a bunch of European golfers.

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Speaker 2: I mean, you have's done pretty well of course one

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Speaker 2: in Rome. So we're going to see huge rivalry and

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Speaker 2: the big question about whether the opening pairings, the people

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Speaker 2: going out first are going to be able to really drive.

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Speaker 2: At the first hot, I hit a really really long

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Speaker 2: shot three hundred and sixty five yards. It's going to

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Speaker 2: be fascinating. Sars at twelve to ten London time today,

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Speaker 2: a pretty early state side seven ten Am. I like

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Speaker 2: the fact that Adam Mint has gone into the details

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Speaker 2: about actually how many people are getting more interested in golf,

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Speaker 2: which has kind of been a bit of a dying

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Speaker 2: sport but is coming back, and a lot of that

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Speaker 2: is to do with not playing golf on the golf course,

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Speaker 2: but actually playing it indoors with your friends top golf.

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Speaker 2: Maybe that's something that you can think about for the weekend,

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Speaker 2: getting a team together and some bets and watching the

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Speaker 2: Ryder Cup.

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Speaker 9: Of course.

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Speaker 2: Anyway, that's something that I've been thinking about to date.

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Speaker 2: Let's also turn our attention though, to matters more serious,

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Speaker 2: a rapid expansion or of US tariff barriers in both

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Speaker 2: Chief Asia correspondent Ros Matheson joins me now to discuss

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Speaker 2: Good morning Ros on the farmer taris, what does this

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Speaker 2: exemption exception for building a US plant mean?

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Speaker 10: Do you think this has started out really as just

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Speaker 10: Donald Trump announcing something on social media overnight and there

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Speaker 10: isn't a lot of detail and paperwork in practice what

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Speaker 10: this would be. But it does seem as though he's

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Speaker 10: announcing another round of tariffs on different goods, including kitchen

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Speaker 10: cabinets and heavy trucks, but also particularly pharmaceutical branded pharmaceuticals

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Speaker 10: pagented pharmaceuticals, so probably not generic pharmaceuticals.

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Speaker 1: But you know, this is potentially.

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Speaker 10: Impactful for a lot of big farmer companies around the world,

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Speaker 10: unless they have already started to break ground on production facilities.

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Speaker 3: In the US.

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Speaker 1: I mean, many of them are doing that, so they

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Speaker 1: may find they get an exemption, but some have promised

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Speaker 1: to do so and have not yet started, and it's

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Speaker 1: very unclear if they get impacted.

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Speaker 3: And also how does this go.

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Speaker 10: Against all the other trade deals that are being done

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Speaker 10: and the complex arrangements already. Does this get stacked on

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Speaker 10: top of other tariffs? Do you get an exemption if

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Speaker 10: you've already negotiated a full trade deal with the US.

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Speaker 10: So it's unclear just how significant this might be for

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Speaker 10: farmer company and it's potentially impactful, particularly for those in Europe,

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Speaker 10: but also in Singapore. But you can see from the

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Speaker 10: market reaction that people are kind of waiting really to

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Speaker 10: get more detail exactly how it's going to play out.

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Speaker 2: Yeah, absolutely they are. You know, perhaps the upshot of

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Speaker 2: this is that the trade will might not end, it

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Speaker 2: might be an ongoing state. Roslin, thank you so much

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Speaker 2: for being with us. That in Bloomberg's chief Asia correspondent,

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Speaker 2: Roslyn Matheson speaking to me this morning. Stay with us.

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Speaker 2: More from Bloomberg daybaqube coming up after this. So European

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Speaker 2: leaders privately telling Moscow, that they're ready to shoot down

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Speaker 2: jets and encroach on their territory as Russia appears to

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Speaker 2: be testing native member countries and Mark Russia speaking to Bloomberg,

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Speaker 2: Well talking to us this morning, Ben Sills, Bloomberg's Managing

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Speaker 2: editor for European Economy and Government. Ben, good to have

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Speaker 2: you with me today. It seems like a real test

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Speaker 2: of NATO credibility at the moment. What has emerged you

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Speaker 2: think over the course of these past few days on

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Speaker 2: trying to counter Russia.

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Speaker 9: Hi, good morning, Caroline. Yeah, I think you're right. I

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Speaker 9: think I would say that. You know, this year NATO

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Speaker 9: has faced two major challenges. The first one kind of

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Speaker 9: concluded at the beginning of the summer with that summit

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Speaker 9: where Mark Rutter managed to persuade Donald Trump to kind

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Speaker 9: of renew the US commitment to the alliance, which I

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Speaker 9: think had been, you know, a source of some concern

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Speaker 9: for European leaders. And now you have a series of

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Speaker 9: incursions by various Russian aircraft, thrones and fighter jets along

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Speaker 9: the eastern Eastern border. That the worrying thing about that

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Speaker 9: is that for years, ever since really the start of

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Speaker 9: the war in Ukraine, security analysts have been saying that

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Speaker 9: when if Russia wants to threaten Europe beyond Ukraine, the

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Speaker 9: way that begins is with some kind of hybrid attack

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Speaker 9: which sows confusion, and by confusing or disguising their intentions,

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Speaker 9: the Russians are seeking to divide the allies. And you

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Speaker 9: have seen that this week with the governments in Eastern Europe,

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Speaker 9: the Polls, the Estonians, the Lithuanians, all calling for really

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Speaker 9: assert of response to further further incursions, including potentially shooting

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Speaker 9: down Russian jets, whereas the Germans, for example, happened publicly

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Speaker 9: much more cautious. But what we learned from this, from

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Speaker 9: from this reporting yesterday is that actually in private, the Germans,

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Speaker 9: French and the British have been delivering a fairly fairly

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Speaker 9: strong message to the Russians saying, actually, yeah, you do that,

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Speaker 9: and we are prepared to shoot down your jets.

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Speaker 2: That is interesting, isn't it. Mark Rutterer telling Bloomberg that

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Speaker 2: President Trump's statement on Ukraine that it could maybe take

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Speaker 2: back all of its territory is fantastic. I mean, that's

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Speaker 2: the other layer, isn't it. It is just about what

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Speaker 2: the US position on NATO is.

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Speaker 9: Yeah, that was quite surprising from Trump this week, I thought,

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Speaker 9: you know, and there were different layers to it, you know. Obviously,

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Speaker 9: it was a really strong endorsement of the Ukrainian position

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Speaker 9: on the face of it, and a very bleak assessment

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Speaker 9: from a Russia point of view of both their economy

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Speaker 9: and their military situation. At the same time, Trump clearly

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Speaker 9: is distancing the US from the conflict in Ukraine, and

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Speaker 9: the role that he defined for the US is essentially

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Speaker 9: selling weapons to the Europeans so that they can ship

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Speaker 9: them to Ukraine. So kind of, on the one hand,

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Speaker 9: you do have the reassurance that it looks like a

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Speaker 9: prosh one between the US and Russia is further away

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Speaker 9: and it's been for some time. You also have less

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Speaker 9: fewer restrictions on the face of it, on the weapons

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Speaker 9: that Ukraine can access if they can find the money,

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Speaker 9: but less skin in the game for the US.

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Speaker 11: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 11: stories making news from London to Wall Streets and beyond.

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Speaker 11: You can also listen live each morning on London DAB Radio,

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Speaker 11: the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 2: I'm Caroline Hepca.

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Speaker 11: And I'm Stephen Carroll. Join us again tomorrow morning for

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Speaker 11: all the news you need to start your day right

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Speaker 11: here on Bloomberg day Break Europe

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Speaker 10: M