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

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Speaker 2: This is the BlueBag DAYBAQ podcast. Good morning, It's Thursday,

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Speaker 2: the fifteenth of January. I'm Caroline Hepkat in London.

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Speaker 3: And I'm Stephen Caroline Brussels. Coming up today. A White

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Speaker 3: House meeting fails to repair Denmark's rift with the US

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Speaker 3: over Greenland. As NATO countries begin to deploy troops to

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Speaker 3: the Arctic island.

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Speaker 2: President Charm signals that he'll hold off on attacking Iran

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Speaker 2: for now.

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Speaker 3: Plus heading East China's president, she welcomes a stream of

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Speaker 3: global leaders shaken by Trump's new world order.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 3: Denmark's top diplomat says a fundamental disagreement remains over Greenland

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Speaker 3: following a meeting with the US Vice President and Secretary

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Speaker 3: of State. The talks, which included Greenland's foreign minister, followed

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Speaker 3: social media posts by President Trump repeating his demand for

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Speaker 3: the US to take control of the island for national

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Speaker 3: security reasons, while announcing an agreement to form a high

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Speaker 3: level working group. Danish Foreign Minister Lars Luca Rasmussen said

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Speaker 3: disregarding Greenland's right to self determination is totally unacceptable.

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Speaker 4: Greenland for the time being and for super future will

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Speaker 4: remain within the Kingdom of Denmark. And therefore this is

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Speaker 4: a common position that we want to work with our American,

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Speaker 4: French and allies. But it must be a respectful corporation

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Speaker 4: and it must respect the red lines.

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Speaker 3: Lars Luker Rasmussen was speaking as European countries seek to

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Speaker 3: respond to US threats over the territory. Germany says an

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Speaker 3: exploration mission of thirteen soldiers will arrive in Greenland shortly. France, meanwhile,

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Speaker 3: says it will participate in joint drills on the territory

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Speaker 3: this week. In addition, Sweden says it's sending several officers,

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Speaker 3: Norway two people, and the UK one officer.

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Speaker 2: US President Donald Trump has indicated that he might hold

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Speaker 2: pulled off on attacking Iran after being reassured by sources

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Speaker 2: that the government in Tehran will stop killing protesters. The

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Speaker 2: comments come as the Oslo based Iran Human Rights Group

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Speaker 2: said that sources in the country's health ministry report at

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Speaker 2: least three four hundred people have been killed and thousands

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Speaker 2: injured in the protests. Here's what President Trump had to

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Speaker 2: say the.

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Speaker 5: Killing in Iran is stopping, stopped and stopping, and there's

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Speaker 5: no plan for executions or an execution or executions, so

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Speaker 5: I've been told they are good authority.

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Speaker 2: President charmp speaking asked if military action is now off

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Speaker 2: the table, the US president said that he would watch

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Speaker 2: it and see what the processes. Oil prices have slumped

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Speaker 2: in response to the comments, which MARKUS shift in tone,

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Speaker 2: a day after Trump had urged Iranians to continue their

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Speaker 2: protests against the country's leadership.

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Speaker 3: I mean, while the US president says the main obstacle

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Speaker 3: to peace in Ukraine is its own leader, Vladimir Zelenski.

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Speaker 3: Donald Trump's comments to Reuters are likely to alarm European allies,

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Speaker 3: worried that Ukraine will suffer from any rush to a

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Speaker 3: peace deal on bad terms. In a social media post,

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Speaker 3: Ukraine's president Zelenski said his side is working hard on

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Speaker 3: peace plans. On our end, we are being as productive

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Speaker 3: as possible. We also expect energy from the American side

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Speaker 3: in their work. I personally am very much expecting this.

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Speaker 3: Zelenski also declared a state of emergency in the country's

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Speaker 3: energy sector, which has come under intense Russian bombardment. Temperatures

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Speaker 3: in Kieva expected to hit minus seventeen degrees celsius as

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Speaker 3: much of the city faces disruptions to heating and power.

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Speaker 2: In the same interview with wit As, President Trump says

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Speaker 2: that he does not plan to fire FED, change your

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Speaker 2: own Pale, the USC just said that his administration was

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Speaker 2: in holding pattern with the Central Banker. He added that

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Speaker 2: he would be selecting Powell's replacement within weeks and attacked

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Speaker 2: Republicans who had raised concerns about the Fed's independence as disloyal.

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Speaker 3: In the UK, estate agents are growing more optimistic about

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Speaker 3: the housing market, easing borrowing caster driving up the Royal

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Speaker 3: Institution of Chartered Surveyor's gauge of expected sales Boomberg, Chanmes

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Speaker 3: Walcock has more.

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Speaker 6: London is facing a real estate slump. Prices fell one

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Speaker 6: point three percent last year as the capital bore the

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Speaker 6: brunt of tax uncertainty caused by the UK government's budget,

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Speaker 6: but real estate agents see light at the end of

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Speaker 6: the tunnel, pointing to falling interest rates and a hope

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Speaker 6: labor tax rises have peaked. A RIX index of confidence

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Speaker 6: jumped from minus four to twenty two in December as

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Speaker 6: the property market hopes buying a house is one of

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Speaker 6: your New Year's resolutions in London. James Walcock Bloomberg Radio.

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Speaker 2: Elon Musk's EXAI has blocked its chat bot Grock from

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Speaker 2: creating sexualized images of real people. The move comes after

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Speaker 2: widespread global criticism that the firm had allowed women and

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Speaker 2: children to be victimized by the AI tool. Speaking before

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Speaker 2: the news, UK Prime Minister Kids Starmer welcomed changes from

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Speaker 2: the platform.

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Speaker 7: I have been informed this morning that x is acting

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Speaker 7: to ensure full compliance with UK law. If so, that

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Speaker 7: is welcome, but we're not going to back down. They

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Speaker 7: must act. We will take the necessary measures. We will

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Speaker 7: strengthen existing laws and prepare for legislation if it needs

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Speaker 7: to go further, and Ofcom will continue it's independent investigation.

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Speaker 3: Kis Starmer.

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Speaker 2: They're speaking in Parliament before a statement from XAI posted

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Speaker 2: on x yesterday, which said that technological measures now prevent

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Speaker 2: Grock from editing images of real people in revealing clothing,

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Speaker 2: but paid subscribers can still create pictures that adhere to

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Speaker 2: X's terms of service. Governments and regulators around the world

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Speaker 2: have condemned the feature and opened investigations into XAI and groc.

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Speaker 2: Mask has so so far defended the technology instead blaming

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Speaker 2: users for abusing it.

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Speaker 3: A crew of four astronauts is depart of the International

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Speaker 3: Space Station on Wednesday, in NASA's first ever medical evacuation.

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Speaker 3: NASA sent four astronauts back to Earth, the first time

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Speaker 3: they've taken part in this One crewmate, was in need

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Speaker 3: of medical attention, left the International Space Station alongside three

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Speaker 3: others on Wednesday. The group is due to land in

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Speaker 3: the Pacific Ocean early this morning. NASA declined to offer

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Speaker 3: details on the astronauts condition, citing medical privacy, but confirmed

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Speaker 3: in a social media statement that it was not an

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Speaker 3: emergency situation and the decision was taken to allow proper

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Speaker 3: medical evaluations on the ground. One American and two Russian

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Speaker 3: astronauts remain aboard the orbiting lab, taking part in the mission,

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Speaker 3: which began just over a months ago with a Sawyer's

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Speaker 3: rocket lift off from Kazakhstan.

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Speaker 2: Those are top stories for you today. Looking at the

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Speaker 2: markets right now, oil falling for the first time in

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Speaker 2: six days. Breakthrough futures are well over three percent this morning.

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Speaker 2: Silver is tumbling, Gold, platinum and pallagium also declining. Two

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Speaker 2: earnings to think about Rischmot in terms of third quarter

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Speaker 2: sales up by eleven percent. TSMC is a beat on

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Speaker 2: net income and gross margins. The dollar this morning is

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Speaker 2: currently flat on the Blue Big Dollar Spot Index. Ten

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Speaker 2: year treasury yields this morning also little change, trading at

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Speaker 2: four fourteen this as European stock futures are up to

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Speaker 2: ten to US stock futures range bound but actually slightly negative.

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Speaker 3: Those are the markets in a moment. More on that

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Speaker 3: meeting in the US over Greenland, plus why world leaders

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Speaker 3: are lining up to mend fences with China amid the

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Speaker 3: turmoil and international relations. But another story that we've been

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Speaker 3: reading this morning about people's changing relationship with alcohol. Our

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Speaker 3: food editor k Crater has been looking into this the numbers,

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Speaker 3: things like Diagio projecting a drop and first quarter sales

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Speaker 3: and surveys showing fewer adults drinking, but also talking to

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Speaker 3: restauranteurs about what they're seeing, and they're actually picking out

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Speaker 3: different kinds of trends. Some people are choosing to get

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Speaker 3: takeaway bottles of wine rather than sitting in a wine

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Speaker 3: bar and having a drink. Others are actually seeing people

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Speaker 3: drink more like the stake chain Hawks more in London Waitrose.

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Speaker 3: So we'll take from this what you will sales off

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Speaker 3: It's canned rose and sparkling wine jump last year too.

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Speaker 3: So what does this mean for people's trend of alcohol?

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Speaker 3: Are we drinking less? Are we drinking differently? Are we

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Speaker 3: choosing two different things? Kate looks through all the sort

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Speaker 3: of various definitions of this too, and comes up with

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Speaker 3: the term that I haven't heard before, but I think

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Speaker 3: I will be using now zebra striping. This is where

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Speaker 3: you're alternating an alcoholic drink and an alcoholic drink on

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Speaker 3: a night out as well, just one of the new

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Speaker 3: habits people are picking up.

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Speaker 2: Yeah, I really I like this story. I think it's

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Speaker 2: I think it's great. Obviously we've been drinking for millennia

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Speaker 2: as human beings, but I think that it's nice that

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Speaker 2: maybe there's less social pressure to drink and that people

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Speaker 2: can decide what they want to do. But yeah, I

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Speaker 2: thought it was fascinating that the bosses over Hawksmore was saying,

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Speaker 2: you know, with such global uncertainty, maybe difficult times, that

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Speaker 2: people are sometimes drinking more. But yeah, it depends how

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Speaker 2: there's a huge kind of cost factor, isn't there too?

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Speaker 3: Well, I mean, look at whether it's cost whether it's

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Speaker 3: people being more health conscious, whether it's just January or

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Speaker 3: whether it's the state of the world. I think there's

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Speaker 3: a lot of factors that you can point to about

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Speaker 3: what's driving you to drink or not drink, as the

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Speaker 3: case may be. It's a great read. You'll find it

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Speaker 3: out Bloomberg dot com and we'll put a link to

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Speaker 3: it in our podcast show notes. Well, let's bring you

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Speaker 3: more on that meeting in Washington now of a greenland

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Speaker 3: Denmark's foreign minister. It says a fundamental disagreement over the

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Speaker 3: island's future remains ar Chief or of correspondent Oliver Crook

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Speaker 3: is with US now for more. Oliver, was any progress

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Speaker 3: then made at this meeting?

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Speaker 1: Well, I think it's, you know, you sort of summarize

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Speaker 1: the headline. That's a story that everybody's running with. That

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Speaker 1: line from the Danish foreign minister after those meetings with

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Speaker 1: jd Vance and Marco Rubio in Washington, d C. Yesterday

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Speaker 1: saying that there's still fundamental disagreements that remain. Gave a

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Speaker 1: little press conference after that, saying that basically nothing is

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Speaker 1: really solved at this point. The discussions were frank and constructive,

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Speaker 1: but says that really their position has been since the

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Speaker 1: very beginning that it is possible to secure Greenland through

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Speaker 1: the framework that exists currently, the nineteen fifty one agreement

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Speaker 1: that basically governs the relationship of the United States's presence

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Speaker 1: in Greenland, that was signed just two years after NATO

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Speaker 1: in order to beef up Arctic security, and that they

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Speaker 1: have also announced now a high level working group to

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Speaker 1: quote this is what he said, explore if they can

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Speaker 1: find a common way forward in the issue of Greenland,

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Speaker 1: and that work will start to try to find a

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Speaker 1: path that accommodates both the concerns of the United States

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Speaker 1: and obviously the number of red lines that have been

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Speaker 1: set out by Denmark.

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Speaker 2: Yeah. I mean, if you were to take anything from

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Speaker 2: the body language of that sort of hasty press conference,

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Speaker 2: as you say, they looked grim. I'm quite glum. What

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Speaker 2: do we know about the plans to beef up the

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Speaker 2: military presence in Greenlands? Is that going to satisfy Donald Trump?

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Speaker 2: I mean, it's like a handful of military individuals being sent.

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Speaker 1: Yeah. So there are a couple of things here. We

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Speaker 1: should say that last year Denmark announced that they would

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Speaker 1: add several billions dollars more in terms of consecrating that

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Speaker 1: to the security of Denmark. We know that the Danes

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Speaker 1: are going to be sending more troops, more aircraft, more

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Speaker 1: naval vessels as well. But we also got a signal

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Speaker 1: of solidarity from a number of European countries overnight over

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Speaker 1: the last basically twenty four hours, where we have Germany, Sweden, Norway,

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Speaker 1: the UK. They're all sending what are currently very very

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Speaker 1: very small military delegations to Greenland. But today we expect

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Speaker 1: the Germans to send thirteen soldiers in what they're calling

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Speaker 1: an exploratory mission to Greenland. The Defense Ministry of Germany

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Speaker 1: saying that they're going to explore the framework of conditions

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Speaker 1: for possible military contributions to support Denmark and ensuring security

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Speaker 1: in the region, for example on maritime surveillance capacities. Yesterday

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Speaker 1: we heard from the Prime Minister of Sweden out on

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Speaker 1: x saying that basically they will prepare for the upcoming

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Speaker 1: elements of the framework of the Danish exercise on Operation

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Speaker 1: Arctic Endurance, and that what is interesting, he said, it

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Speaker 1: is Denmark's request that Sweden send personnel of the armed forces,

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Speaker 1: so this is something that Denmark has asked for. Norway

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Speaker 1: will send a couple. France will open a consulate in

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Speaker 1: Greenland on February the sixth, and the Foreign minister says

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Speaker 1: that that's a political signal, so listen at the moment,

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Speaker 1: it's really sort of a symbolic move to bring more

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Speaker 1: of the troops their solidarity within Europe.

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Speaker 3: We should say that it's.

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Speaker 1: Not really going to be a military deterrent for the

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Speaker 1: United States, but it may be an effective diplomatic deterrent.

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Speaker 3: Okay, Oliver Krook archieforit, correspondence, Thank you very much. Stay

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Speaker 3: with us. More from Bloomberg Daybreak Europe coming up after this.

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Speaker 2: Now, Donald trumps aggressive foreign policy moves have been upending

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Speaker 2: global relations. China's president is welcoming a procession of leaders

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Speaker 2: who are looking to build relations with the world's second

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Speaker 2: largest economy. Canada's Prime Minister Mark Carne is there now,

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Speaker 2: and the UK's Kiss Darmer and Germany's Friedrich Mertz are

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Speaker 2: visiting in the coming weeks. Our Greater China executive editor

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Speaker 2: John lu joins us now far more. John, good to

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Speaker 2: speak to you. How significant is this increase in diplomatic

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Speaker 2: activity around China and all of these visits. What is

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Speaker 2: driving this steady stream of leaders to Beijing's door.

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Speaker 8: So I would describe the current increases very substantial. I mean,

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Speaker 8: in addition to those leaders that you mentioned, we also

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Speaker 8: had Emmanuel Macron from France at the end of last year.

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Speaker 8: We had the Prime Minister of Ireland earlier this year,

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Speaker 8: the president of South Korea also earlier in January, and

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Speaker 8: then of course looking into April, we are expecting President

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Speaker 8: Trump to make a visit, and so a lot of

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Speaker 8: diplomatic activity very unusual. What's driving it, I would say

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Speaker 8: there are three things. All of these countries are looking

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Speaker 8: for ways to fortify their economies, to bolster growth. China

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Speaker 8: is the world's second biggest economy. There's a lot of

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Speaker 8: trade to be done. And there's also this interest in

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Speaker 8: securing access to rare earth. China obviously has this huge

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Speaker 8: dominance when it comes to supplies of critical minerals, and

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Speaker 8: all of these economies want access to those minerals. And

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Speaker 8: I think the second thing is you saw President Trump

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Speaker 8: and President She meeting in South Korea at the end

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Speaker 8: of last year and reaching this sort of detent, and

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Speaker 8: I think there is this concern that as She and

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Speaker 8: Trump meet each other more often, they might meet each

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Speaker 8: other four times in twenty twenty six. I think there

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Speaker 8: is this concern amongst the Middle Powers Germany, France, the

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Speaker 8: UK that they might be left out of that party,

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Speaker 8: and so there is an interest in trying to get involved.

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Speaker 8: And now many of these leaders, mister Starmer and mister Carney,

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Speaker 8: these are all new leaders, and so this change in

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Speaker 8: leadership offers an opportunity for these countries to try and

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Speaker 8: reset their relationship with China.

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Speaker 3: Are there risks too though? How are these foreign leaders

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Speaker 3: handling the more sensitive issues for China like Taiwan.

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Speaker 8: I think the strategy is to try not to talk

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Speaker 8: about it. I mean, if you listen to the leaders

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Speaker 8: when they visit, they are going to great odds to

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Speaker 8: make the emphasis be on economics, on business, on trade,

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Speaker 8: and they are avoiding Taiwan specifically. We've seen this spat

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Speaker 8: between China and Japan because the Prime Minister of Japan

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Speaker 8: may be sort of off the cuff remarks that seem

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Speaker 8: to open up the door for Japan's military to get

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Speaker 8: involved if there were ever a conflict over Taiwan. And

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Speaker 8: now China's cutting off rare earths, it's cutting off tourists

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Speaker 8: to Japan, and so that has gotten really intense and

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Speaker 8: I think is acted as example number one of why

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Speaker 8: these other leaders will not want to talk about Taiwan.

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Speaker 2: Yeah, and briefly, how does Beijing view these new overtures then?

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Speaker 2: Is it all about the economic benefits?

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Speaker 8: I think the economics are very important. China's own economy

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Speaker 8: is in a fairly weak state at the moment. They've

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Speaker 8: got a real estate crisis. Consumption as low exports has

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Speaker 8: been the one highlight of the economy, and that has

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Speaker 8: created a lot of trade tensions with European countries specifically,

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Speaker 8: and so there is an interest with China and trying

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Speaker 8: to maintain their access to these markets. But also all

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Speaker 8: of these leaders coming to Beijing, this sort of gives

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Speaker 8: she an opportunity to really grow Chinese influence around the world.

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Speaker 8: And so I think these this is how they see,

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Speaker 8: This is how Beijing season as an opportunity both economically

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Speaker 8: and diplomatically.

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

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