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

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Speaker 1: Do make you a podcast available every morning on Apples,

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Speaker 1: Spotify or wherever you listen. It's Monday, the ninth of June.

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Speaker 1: Here in London.

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Speaker 2: I'm Caroline Hepki and.

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Speaker 3: I'm Stephen Carroll. Coming up today. Trump sends the National

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Speaker 3: Guard to Los Angeles after a third day of anti

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Speaker 3: deportation protests and clashes, as California's governor calls the move unlawful.

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Speaker 1: The UK Capital hosts trade talks between the US and

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Speaker 1: China today in a bid to diffuse tariff and rare

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Speaker 1: earth tensions.

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Speaker 3: Plus when the music stops, Can you find a seat?

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Speaker 4: Why?

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Speaker 3: Return to office mandates are forcing London's banks to lease

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Speaker 3: more office space.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 3: Anti deportation protests are escalating in Los Angeles after US

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Speaker 3: President Donald Trump deployed the National Guard despite objections from

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Speaker 3: California Governor Gavin Newsom. The arrival of troops over the

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Speaker 3: weekend appears to have inflamed an already volatile situation as

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Speaker 3: residents protest against sweeping deportation policies. Writing on social media,

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Speaker 3: Gavin Newsom says he's formally requested the White House reverses

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Speaker 3: what he calls unlawful deployment, and speaking to MSNBC in

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Speaker 3: the last few hours, he went further criticizing the violence,

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Speaker 3: but also saying.

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Speaker 4: This the peaceful protesters, we want to keep them safe.

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Speaker 4: We want them to exercise their fundamental rights. We want

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Speaker 4: to keep those that are enforcing the laws in a

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Speaker 4: respectful and responsible way also safe. But Donald Trump needs

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Speaker 4: to pull back. He needs to stand down. Donald Trump

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Speaker 4: is inflaming these conditions. This is Donald Trump's problem right now,

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Speaker 4: and if he can't solve it, we will.

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Speaker 3: Speaking to MSNBC, Governor Newsom said that California will file

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Speaker 3: a lawsuit against Trump's federalization of the National Guard. Federal

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Speaker 3: law strictly limits the deployment of federal troops within US

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Speaker 3: borders and the legal base as FID. The decision is

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Speaker 3: highly contentious well.

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Speaker 1: The California Governor's comments come after President Trump described the

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Speaker 1: demonstration as quote migrant riots and said that federal agencies

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Speaker 1: were directed to take all such action necessary to restore

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Speaker 1: order and to continue deportation operations. Here's what he said

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Speaker 1: as he prepared to board Air Force one.

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Speaker 5: Well, we're gonna have troops everywhere. We're not going to

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Speaker 5: let this happen to our country.

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Speaker 6: We're not going to let our country be torn apart like.

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Speaker 1: It was under bike And the US President has been

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Speaker 1: posting on social media. In the last hour, he wrote,

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Speaker 1: looking really bad in La, Bring in the troops. Trump's

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Speaker 1: comments come after two days of protest spot by widespread

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Speaker 1: US immigration raids across the region. The step up enforcement

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Speaker 1: is part of President Trump's vow to carry out the

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Speaker 1: largest deportation campaign in US history.

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Speaker 3: The United States and China will restart trade negotiations today

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Speaker 3: in a bid to further address the export of rare

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Speaker 3: earth minerals and restrictions on advanced technology. The talks in

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Speaker 3: London come after a phone call between Donald Trump and

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Speaker 3: Chooting Peng last week. Kevin Hassett, director of the White

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Speaker 3: House National Economic Council, told CBS News as Margaret Brennan,

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Speaker 3: rare earth minerals were a key sticking point.

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Speaker 6: Those exports of critical minerals have been getting released at

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Speaker 6: a rate that is higher than it was, but not

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Speaker 6: as high as we believe we agree to in Geneva

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Speaker 6: and President Trump being a deal maker talked with President

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Speaker 6: she and he said, let's take you know, our senior

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Speaker 6: guys at the people who are the same level as you.

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Speaker 6: Let's have them meet somewhere and let's get these things

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Speaker 6: cleared up, and then we'll clear up what you don't

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Speaker 6: like that weird agreed to release on our side.

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Speaker 3: White House Economic Council Chair Kevin Hassett. There It comes

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Speaker 3: as the UK two faces a massive hurdle in its

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Speaker 3: trade negotiations with Washington, with the US saying the deal

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Speaker 3: must be finalized within five weeks. Former British trade negotiator

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Speaker 3: Crawford Faulkner has told Bloomberg that such a timeline is

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Speaker 3: too ambitious.

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Speaker 5: Well.

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Speaker 1: Today's talks between the United States and China come as

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Speaker 1: the latest data shows Chinese exports to the US or

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Speaker 1: the worst drop in more than five years. Official figures

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Speaker 1: for May showed that shipments to America fell by thirty

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Speaker 1: four percent, but the country is still on course for

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Speaker 1: a record trade ser plus this year. Overall, Chinese exports

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Speaker 1: rose four point eight percent from last year, less than

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Speaker 1: the six percent expected by economists. The growth was driven

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Speaker 1: by an eleven percent rise in exports to countries other

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Speaker 1: than the United States.

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Speaker 3: The British Prime Minister Kias Starmer is planning to use

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Speaker 3: Nvidia to train more workers to use artificial intelligence. Starmer

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Speaker 3: is set to appear alongside the Tech Giants CEO Jensen

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Speaker 3: Huang to announce the two hundred million pounds scheme later today.

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Speaker 3: Bloomberg Exchange Wilcock reports.

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Speaker 5: On Saturday night, Google chairman Eric Schmidt and DeepMind CEO

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Speaker 5: Demesisabus could be found hobnobbing with Kirs Starmer. Now today

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Speaker 5: he's sharing a platform with Nvidious CEO Just One. You

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Speaker 5: don't need AI to see that. Downing Street is trying

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Speaker 5: to showcase its positive vision for the tech sector and growth.

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Speaker 5: Yet the question here is which image with a public

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Speaker 5: remember tech led growth or the public sector budget cuts

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Speaker 5: due to be announced on Wednesday in London. James Wilcock

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Speaker 5: Blue VEG Radio.

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Speaker 1: Well, let's turn our attention to Europe because the European

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Speaker 1: Central Banks Isabelle Schnabel, says that now is the time

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Speaker 1: to boost the role of the euro. Speaking also over

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Speaker 1: the weekend, the Central Banks executive board member said that

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Speaker 1: the currency is in a window of opportunity as investors

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Speaker 1: look to Europe for diversification. Her comments chime with other policymakers,

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Speaker 1: including President Christine La gard as officials look to use

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Speaker 1: President Trump's global trade policies to their own advantage.

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Speaker 3: In sportsneers, Carlos Alcaraz has retained his French Open title,

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Speaker 3: beating world number one Yannik Center and a five set thriller.

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Speaker 3: Spaniard came back from two sets down and saved three

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Speaker 3: championship points during the second lung this Grand Slam final

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Speaker 3: in the Open Era. After the match, he thanks the

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Speaker 3: Parisian crowd for their support. You were really really important.

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Speaker 5: You are in my heart and you always be in

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Speaker 5: my heart.

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Speaker 3: So thank you, Thank you very much for you, Carlos

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Speaker 3: Alcaraz speaking there. The women's finals are twenty one year

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Speaker 3: old Cocoa Garth emerged victorious against number one seed Arena

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Speaker 3: Sablanca in three sets.

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Speaker 1: And those are our top stories. Yes, gosh, did she

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Speaker 1: see her? She gave Spike Lee hug on the sidelines

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Speaker 1: of the Paris tennis event. Yeah, that was a really extraordinary,

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Speaker 1: wasn't it. Let's think about the markets though this morning.

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Speaker 1: So the dollar at the moment is drifting lower again.

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Speaker 1: We've got these us China trade talks taking place here

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Speaker 1: in London in terms of stock futures, and we're down

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Speaker 1: shedding two tens of one percent. The S and P

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Speaker 1: five hundred evening futures, zeros fifty futures are also lower

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Speaker 1: in terms of Japan, confirming a GDP contraction. To this

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Speaker 1: kind of cautious boj stance, perhaps all were men in place.

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Speaker 1: The dollar is down two tenths of one percent. We've

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Speaker 1: seen the cost up by one and a half percent

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Speaker 1: this morning, so those are the big movers. In terms

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Speaker 1: of the ten year US treasury yield, we're just down

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Speaker 1: about a basis point this morning at full forty nine.

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Speaker 3: There's the markets in a moment, more on the latest

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Speaker 3: from La Plus why banks in London are seeing a

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Speaker 3: shortage of desks. But another story that carterry this morning

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Speaker 3: on the issue of monogramming, which I've never really thought

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Speaker 3: that much about, but Chris Robsar has a lot of

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Speaker 3: opinions about this I.

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Speaker 1: Learned, Yeah, he certainly does. Is it naf Is it chic?

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Speaker 1: He spoke to the form of vanity fair and as

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Speaker 1: a grade and Carter, who apparently in his book called

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Speaker 1: it idiotic, which seems to have sent Chris Robsner on

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Speaker 1: an absolute kind of tail spin because he does love it.

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Speaker 1: He says, I'm a proud monogrammer. Monogramming is a lifestyle choice.

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Speaker 1: He does do loads of research into it.

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Speaker 3: Carolin, we've been friends for a while, but it's time

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Speaker 3: for me to teach you a very irish expression, which

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Speaker 3: is peak notions, which is how I think about monogramming.

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Speaker 3: It's just not something that exists in my world. And

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Speaker 3: I'm fascinated because honestly, it's a very interesting reflection. And

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Speaker 3: Chris kind of argues both sides of it, or goes

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Speaker 3: through the reasons for and against, and there's lots of

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Speaker 3: you know, obviously resale value if it's a high value

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Speaker 3: luxury good, but also the sentimental value of having something monogrammed.

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Speaker 3: It doesn't it doesn't.

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Speaker 1: Well apparently love Reto has launched this with like great fanfare,

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Speaker 1: this monogramming program, and that does seem to be maybe

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Speaker 1: also trying to stop fakes being made. So yes, I do, well,

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Speaker 1: I think it is. I think maybe secretly I'm maybe

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Speaker 1: I'm a monocram well possibly right, Okay, secrets for a

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Speaker 1: Monday morning.

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Speaker 3: Fair enough, let's bring you more details on Our top

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Speaker 3: story on the program today, the protests and clashes in

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Speaker 3: Los Angeles over sweeping immigration raids and the deportation policies

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Speaker 3: of the Trump administration. California's Governor Gavin Newsom is formally

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Speaker 3: requested a withdrawal of National Guard troops. Bloomberg's John Herskovitz

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Speaker 3: is with us for more this morning. John, good to

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Speaker 3: have you with us. What is the latest that we

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Speaker 3: hear We're hearing what is happening currently in Los Angeles.

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Speaker 2: We've entered the third day of these protests and the

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Speaker 2: first of the at least two thousand National Guard began

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Speaker 2: arriving in Los Angeles on Sunday. So we have this

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Speaker 2: on one front. Then we have this confrontation, this war

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Speaker 2: of words between Governor Newsom and Donald Trump, with them

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Speaker 2: as the as the audo indicated, Governor Newsom is requesting

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Speaker 2: that these troops be withdrawn, seeing this as a way

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Speaker 2: of inflaming the situation, and Trump saying that the things

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Speaker 2: are really bad here and that these troops are needed.

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Speaker 2: And the thing is like with Los Angeles County. One

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Speaker 2: thing to keep in mind is the county itself is

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Speaker 2: one of the most populoust places in the US. I

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Speaker 2: think it has like nearly ten million people, and the

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Speaker 2: White House has a goal of doing about three thousand

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Speaker 2: daily arrests for immigration violations. So it just kind of

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Speaker 2: makes La County, with its large population, which has a

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Speaker 2: lot of people from a lot of places, one of

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Speaker 2: the forefronts of this immigration battle, which is one of

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Speaker 2: the which is the top priority or one of the

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Speaker 2: top priorities for the Trump administration. So we have this

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Speaker 2: playing out on the streets. We have this going between

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Speaker 2: the two the leaders of the US and the most

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Speaker 2: powerful state in the US, California, And we have a

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Speaker 2: lot of people wondering in La what's going to happen next.

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Speaker 1: But you should perhaps rewind and tell us what we

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Speaker 1: know about how all of this was sparked.

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Speaker 2: Yeah, this came after we had some raids in garment

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Speaker 2: districts in working areas, immigration raids on Friday, which led

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Speaker 2: to people taking on those conducting the raids, and it

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Speaker 2: escalated from there going to an ice detention center into

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Speaker 2: other parts of the city, which prompted the call up

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Speaker 2: of the troops from the Trump administration. So it's really

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Speaker 2: going after places where people live and work, trying to

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Speaker 2: round up people at the jobs. And it's all part

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Speaker 2: of this larger, this larger policy of the Trump administration

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Speaker 2: to do as many detentions as is possible to reach

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Speaker 2: the goal of getting you know what they what they've

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Speaker 2: said would be millions of people out of the country.

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Speaker 3: Okay, so that's the lights oft some what's happening in

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Speaker 3: Los Angeles? Another US story even watching for US though

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Speaker 3: this morning, John of the trade talks that are due

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Speaker 3: to take place with China happening in London today. What

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Speaker 3: should we expect.

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Speaker 2: I think we're going to see a lot of attention

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Speaker 2: given to the details of this that we had the

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Speaker 2: talks last week between President Chi Shinping and President Trump.

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Speaker 2: And this is something that Trump has been pushing for,

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Speaker 2: something that Chi shing Ping really is. It's not in

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Speaker 2: his wheelhouse. He doesn't like these direct discussions a deal making,

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Speaker 2: and China prefers to have it go through a process.

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Speaker 2: So we're going to see the process take place this

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Speaker 2: week in London. We have some high profile members from

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Speaker 2: the US Scott Best in the common Secretary, I'm sorry,

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Speaker 2: the Treasury Secretary. Scott Best in the Common Secretary will

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Speaker 2: be there as well, and some high profile people from China.

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Speaker 2: So we're going to see these talks with get into

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Speaker 2: some of the details of what may be going on

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Speaker 2: between these two economic powerhouses. There's some things that are

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Speaker 2: going to be that the US wants to bring up,

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Speaker 2: like speeding up the exports of rare earth materials to

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Speaker 2: the US. These materials have been used in trade fights before.

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Speaker 2: China is the largest miner of these materials, which are

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Speaker 2: key to industries from electric vehicles to green technologies. So

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Speaker 2: the US wants to see more of these coming more quickly,

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Speaker 2: and this will be one of the areas of focus.

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Speaker 2: And what will actually happen is it still remains to

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Speaker 2: be decided. But from Chinese perspecutive, they're looking at more details,

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Speaker 2: more of a process taking place, and for the US

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Speaker 2: they're looking to get as many concessions as possible from

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Speaker 2: China and also focusing on reararts.

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Speaker 1: Okay, John, thank you so much for being with us

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Speaker 1: this morning. That is Bloomberg's John Herskovich then on the

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Speaker 1: latest and what's happening in LA but also the trade

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Speaker 1: discussions between the US and China.

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Speaker 3: Now five years after the COVID pandemic field and unprecedented

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Speaker 3: boom and remote work. Bank executives are insisting that workers

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Speaker 3: should return to the office, but in a growing number

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Speaker 3: of cases, particularly here in London, they don't have enough

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Speaker 3: desks for them. Are really start Reporter Natasha Vaz joins

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Speaker 3: us Now for more. Natasha, Good morning. How widespread is

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Speaker 3: the problem of shortages?

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Speaker 7: Morning? So the answer is that it really depends on

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Speaker 7: the bank, because I mean to kind of go back

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Speaker 7: to way before the pandemic, A lot of banks started

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Speaker 7: reducing their floor space just after the financial crisis, So

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Speaker 7: some banks cut back question lot and then now they've

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Speaker 7: sort of post pandemic, they've continued cutting back. And what

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Speaker 7: that means is that when banks are mandating their staff

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Speaker 7: back to the office, which is increasingly the case, they're

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Speaker 7: then discovering that there aren't actually enough desks for them. So,

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Speaker 7: for example, HSBC has a shortage of thousands, potentially over

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Speaker 7: seven thousand desks at its new office in the city

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Speaker 7: and this has led them to potentially consider moving back

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Speaker 7: to Canary Wolf.

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Speaker 1: Wow, that's extraordinary. What are banks they're doing about it?

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Speaker 1: As you say, do you think it'll be a wider

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Speaker 1: spread revival of Canary Wolf? Which has actually seem some

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Speaker 1: quite high profile departures quite recently.

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Speaker 7: Yeah, So, I mean, real estate isn't exactly a fast

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Speaker 7: moving market and leases only really come up for expiring

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Speaker 7: renegotiation every few years, so it kind of depends on

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Speaker 7: when those options are coming up. So for a lot

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Speaker 7: of the banks post COVID, now is the time when

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Speaker 7: they're able to actually reconsider their floor space for the

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Speaker 7: first time. So in some cases, like I said, banks

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Speaker 7: who need more space are actually looking back to Canary

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Speaker 7: Wharf because if you think about how banks occupy that space,

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Speaker 7: they need really big floor plates, so they need a

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Speaker 7: lot of staff on the same floor, they need lots

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Speaker 7: and lots of equipment, lots of kind of things facilitate trading.

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Speaker 7: So in those cases, Canary Wharf is actually a pretty

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Speaker 7: good bet and rents there are lower, which makes it

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Speaker 7: more economical than staying in the city. So, as I said,

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Speaker 7: HSBC's and Talks potentially moved back to Canary Wharf. JP

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Speaker 7: Morgan is also looking and Deutsche Bank is potentially considering

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Speaker 7: taking two hundred and fifty thousand square foot of office

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Speaker 7: space in London, and one of the options they're considering

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Speaker 7: is the Wharf, and.

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Speaker 3: Briefly Attasha how does the trend in London compared to

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Speaker 3: other European financial hubs.

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Speaker 7: Yeah, so it seems to be a little bit different

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Speaker 7: in London compared to other European cities. So in London,

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Speaker 7: a lot of the banks have been mandating their staff

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Speaker 7: back to the office, and we've seen that particularly with

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Speaker 7: the American banks, so I mean Jamie Diamond JPMorgan has

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Speaker 7: been particularly vocal on this, but other banks have been

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Speaker 7: following suit, you know, sort of gradually increasing the number

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Speaker 7: of days their staff needs to be back in the office.

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Speaker 7: On the continent, a lot of the European banks seem

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Speaker 7: to have let us off stay at home for much longer.

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Speaker 7: So IMG and Commerce Bank have both said that they're

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Speaker 7: aiming for a fifty to fifty split between working from

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Speaker 7: home and the office, and Commerce Bank is actually moving

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Speaker 7: to a small office footprint by twenty twenty eight.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 3: I'm Stephen Carroll. Join us again to my borrowy morning

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