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

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Speaker 2: This is the BLUEBG Day Bake You podcast, available every

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Speaker 2: morning on Apple, Spotify or wherever you listen. It's Wednesday,

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Speaker 2: the twenty second of January in London. I'm Caroline Hepka.

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Speaker 3: And I'm Stephen Carroll. Coming up today. After a brief reprieve,

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Speaker 3: Donald Trump threatens China with ten percent trade tariffs.

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Speaker 2: The new US president launches a potential five hundred billion

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Speaker 2: dollar plan to fund AI infrastructure, dubbed Project Stargate.

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Speaker 3: Plus divisions at Davos, bankers cheer talk of US deregulation

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Speaker 3: as Europe faces being left behind.

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

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Speaker 3: Donald Trump says he is still considering imposing across the

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Speaker 3: board tariffs on Chinese imports. Speaking at an event to

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Speaker 3: the White House, the newly installed US president said the

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Speaker 3: tariffs could be just weeks away.

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Speaker 4: We're talking about a tariff of ten percent China based

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Speaker 4: on the fact that they're sending fentanyl to Mexico in Canada.

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Speaker 3: Beijing imposed restrictions last year on production of chemicals used

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Speaker 3: to make fentanyl after pressure from the Biden administration. Trump's

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Speaker 3: comments came just a day after he notably left the

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Speaker 3: world's second largest economy off a list of imminent targets

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Speaker 3: for tariffs. Trump also singled out the European Union in

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Speaker 3: comments on Tuesday, which he said was very very bad

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Speaker 3: to the US, adding quote, they treat us very very badly,

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Speaker 3: so they're going to be in for tariffs.

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Speaker 2: Donald Trump has announced a US joint venture with soft Bank,

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Speaker 2: Open Ai, and Oracle to fund the expansion of USAI infrastructure,

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Speaker 2: dubbed Stargate. The project will deploy one hundred billion dollars immediately,

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Speaker 2: with plans to increase that to at least five hundred

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Speaker 2: billion dollars. Blue Big Intelligence senior tech analyst man Deep

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Speaker 2: Singh explains how the money will be deployed.

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Speaker 5: All these hyperscalers. We know they have spent about two

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Speaker 5: hundred and forty billion dollars in twenty twenty four, and

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Speaker 5: now think of it as additional. You know, one hundred

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Speaker 5: billion dollars that will be invested in building compute capacity

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Speaker 5: and all of it is going to open AI. So

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Speaker 5: I think that puts them at a big advantage in

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Speaker 5: terms of, you know, the foundational model players when you

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Speaker 5: compare them to Google or Entropic or Meta.

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Speaker 2: As Man Deep Seeing hinted at their open AI will

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Speaker 2: oversee operations. Initial equity will come from SoftBank, Open Ai, Oracle,

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Speaker 2: and Abu Dhabi state investor MGX, with a buildout of

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Speaker 2: the first computing system starting in Texas. The announcement comes

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Speaker 2: after Trump rescinded Biden's sweeping executive order on AI and

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Speaker 2: so halting the implementation of key safety and transparency requirements

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Speaker 2: for AI developers.

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Speaker 3: Yes, president suggested he'd be open to Elon Musk or

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Speaker 3: Oracle chairman Larry Ellison purchasing TikTok and a joint venture

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Speaker 3: with the United States. Donald Trump said the buyer would

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Speaker 3: give the half of the company to the US government

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Speaker 3: in exchange for being allowed to operate.

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Speaker 4: The deal I think is this, and I've met with

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Speaker 4: owners of TikTok, the big owners. It's worthless if it

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Speaker 4: doesn't get a permit. It's not like, oh, you can

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Speaker 4: take the US. The whole thing is worthless. With a

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Speaker 4: perman It's worth like a trillion dollars. So what I'm

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Speaker 4: thinking about saying to somebody is buy it and give

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Speaker 4: half to the United States of America half, and we'll

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Speaker 4: give you the permit, and they'll have a great partner

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Speaker 4: the United.

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Speaker 3: States to speaking after the weekend where TikTok temporarily went

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Speaker 3: offline for users in the United States, Trump then signed

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Speaker 3: an executive order on his first day in office to

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Speaker 3: extend the deadline for a sale by seventy five days.

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Speaker 3: The platform's Chinese owner, Byitdowns, has publicly refused to sell,

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Speaker 3: though perspective buyers hope the Supreme Courts ruling and brief

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Speaker 3: shutdown could push it to reconsider well.

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Speaker 2: Amid the slow announcements on the White House, the president

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Speaker 2: also discussed the ongoing conflict between Ukraine. Donald Trump said

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Speaker 2: that he would probably impose sanctions on Russia if Vladimir

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Speaker 2: Putin doesn't come to the table to negotiate. The news

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Speaker 2: comes as Ukraine's Vladimir Zelenski praised President Trump's ambition to

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Speaker 2: expand US energy exports.

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Speaker 6: Right now, things on our side. President Trump is going

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Speaker 6: to export more energy, but Europe needs to step up

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Speaker 6: and do more long term work to secure real energy independence.

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Speaker 6: You can't keep buying guests from Moscow while also expecting

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Speaker 6: security guarantees, help and back up from the Americas.

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Speaker 2: That's just strong Ukrainian President Vladimir Zelenski, speaking there at

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Speaker 2: the annual meeting of the World Economic Forum in Davas.

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Speaker 2: He went on to refer to the US as an

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Speaker 2: indispensable ally and called on Europe to become more self

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Speaker 2: reliant and develop its industry.

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Speaker 3: Netflix as reporters, it's the biggest quote really increase in

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Speaker 3: subscribers in its history. The swimming Giant added nearly nineteen

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Speaker 3: million customers in the last three months of twenty twenty four.

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Speaker 3: New live sporting events and the return of hit Korean

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Speaker 3: show Squid Game helped the company nearly double the analyst estimates.

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Speaker 3: Bloomberg's Caroline Hyde says it's a blockbuster number, and.

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Speaker 7: They've added on net forty one million more people around

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Speaker 7: the world over the course of this year. I mean,

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Speaker 7: this is better than they did during twenty twenty in

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Speaker 7: the onset of COVID, when we were all suddenly trapped

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Speaker 7: on our homes and had nothing.

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Speaker 3: Else to do. He'd ads, it's the last time we'll

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Speaker 3: ever get subscriber numbers, as the company intends to stop

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Speaker 3: releasing them. Netflix shares rose as much as fourteen percent

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Speaker 3: in extended trading.

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Speaker 2: Now in the UK, the government has asked the chair

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Speaker 2: of its Competition and Markets Authority, Marcus Block and Rink,

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Speaker 2: in a bid to show the business world that it

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Speaker 2: is serious about economic growth. Bloomberg was told that ministers

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Speaker 2: had been underwhelmed by this EMA's proposals to deregulate Plotomberg's

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Speaker 2: James Walcock has the story.

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Speaker 8: There's a new villain in Westminster. Government ministers have been

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Speaker 8: calling on regulators to give businesses more leeway for months now.

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Speaker 8: I frustrated with the response. They've decided heads must roll.

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Speaker 8: It's a close signal from the UK government. It wants

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Speaker 8: to be seen as pro business and wants to boost

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Speaker 8: the economy. But will a new face at the regulator

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Speaker 8: drive new policy in London?

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Speaker 3: James Wilcock Bloomberg Radio, Well, those are your top stories

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Speaker 3: on the markets. Yesterday we saw the dollar wiping out

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Speaker 3: earlier gains to close flat on the day. On Wall Street,

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Speaker 3: stocks climbed into the closes. The S and P five

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Speaker 3: hundred rose by zero point nine percent. We mentioned the

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Speaker 3: rise in Netflix shares. Postmarket treasuries held their rally, closing

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Speaker 3: seven basis points lower. Today they're holding at that level

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Speaker 3: four point five to eight percent on the ten year

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Speaker 3: oil price is slumped. Yesterday WTI fell over two and

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Speaker 3: a half percent. It's down another half of a percent

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Speaker 3: this morning at seventy five dollars and forty seven cents.

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Speaker 3: Elsewhere in Asian trading, we have seen the dollar touch

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Speaker 3: stronger after those latest signals from Donald Trump about tariff's

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Speaker 3: on China. The offshore you on as weekend as zero

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Speaker 3: point three percent versus the dollar as well, and the

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Speaker 3: CSI three hundred decks of Chinese shares is down by

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Speaker 3: one percent.

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Speaker 2: Well, we'll bring you more on Trump's tariff thurdson just

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Speaker 2: a moment, and we'll also be going live to Davis

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Speaker 2: to hear what's happening in a pack schedule today. But

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Speaker 2: another story has caught our Horis had loads of attention

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Speaker 2: in the newsroom this morning, having boasted about being among

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Speaker 2: the top players in the world for a couple of

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Speaker 2: very well known video games. Elon Musk has now admitted

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Speaker 2: that he has used level boosting services. What a level

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Speaker 2: boosting are those things?

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Speaker 3: Where I think that I am one hundred and fifty

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Speaker 3: years old because I had never heard of this, But

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Speaker 3: it is no I know, I'm very ignorant. This is people.

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Speaker 3: Essentially you pay someone else to play the game for you.

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Speaker 2: Like that, well, you can pay. Sometimes people are not

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Speaker 2: sure whether Elon Musk actually paid, or whether people might

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Speaker 2: have volunteered and done it for free just to sort

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Speaker 2: of be close to Elon Musk. He he has spent

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Speaker 2: quite a long time boasting about his proficiency in a

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Speaker 2: couple of games, and so that's why it has sort

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Speaker 2: of had it's in the Game of World, It's had

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Speaker 2: a lot of attention. I'm not an online gamer, I

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Speaker 2: must admit, but I do love other games, card games,

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Speaker 2: board games. I'm totally obsessed at the moment with backgammon. Anyway,

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Speaker 2: that aside, I think the reason this story is so

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Speaker 2: fascinating is that it has it shows you a lot

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Speaker 2: of things, you know, in terms of competition, whether you

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Speaker 2: think that cheating is worthwhile possible, whether you should do

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Speaker 2: it or not.

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Speaker 3: Whether whether you show admit to us, yes, admit to it.

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Speaker 2: Whether it shows something about your real world personality in

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Speaker 2: terms of your gaming profile or not. I think that's

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Speaker 2: why it's kind of sparked so much.

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Speaker 3: Interestingly, I must have discuss this another day on the program.

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Speaker 3: Let's go back though, to our top story this morning.

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Speaker 3: Now in President Trump initially focusing tariff threats on Canada

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Speaker 3: and Mexico, but on Tuesday, the President also discussed imposing

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Speaker 3: ten percent tariffs on all Chinese imports at the start

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Speaker 3: of February. An effect on the Chinese markets. We can

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Speaker 3: discuss further now with Boomberg opinion Columnst. Krishma Vaswani, who

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Speaker 3: has written extensively about Trump and She's relationship. Krishma, great

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Speaker 3: to have you on how does China view the threat

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Speaker 3: of tariffs which now seem to be materializing under Donald Trump.

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Speaker 1: Well, to put it simply, they don't want them. They've

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Speaker 1: talked in the past about how this is being viewed

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Speaker 1: as a way to pressure the Chinese economy. But more

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Speaker 1: than that, they have consistently said, even during the Biden

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Speaker 1: administration and of course during the first Trump administration, that

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Speaker 1: the US is out to keep China down. And what

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Speaker 1: they mean by that is there is a growing sense

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Speaker 1: amongst the Chinese establishment that the United States is not

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Speaker 1: happy watching China's rise, neither in terms of economic strength,

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Speaker 1: but also in terms of its influence, particularly in this

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Speaker 1: part of the world, in the Indo Pacific. Now, what

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Speaker 1: we've seen from the Trump administration is very much to

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Speaker 1: be expect. You know, there were campaign promises made about

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Speaker 1: imposing tariffs on China, and it looks like those will

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Speaker 1: materialize at some point. But to me, what was really

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Speaker 1: interesting was the relationship that was tied to the export

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Speaker 1: of fentanyl from China with regards to the tariffs. And

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Speaker 1: this is something Donald Trump has talked about extensively before

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Speaker 1: and something I think he will continue to hammer home

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Speaker 1: to the Chinese as a way to sort of negotiate

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Speaker 1: on the tariffs, as a way to use them as

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Speaker 1: some sort of leverage to get what he wants.

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Speaker 2: Yes, indeed, I mean Trump has criticized China's failure to

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Speaker 2: curb those fentanyl exports to the US. I mean, obviously

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Speaker 2: the fentanyl crisis has led to so many US deaths.

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Speaker 1: Does he have a point, Yes, Caroline, he definitely has

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Speaker 1: a point. I think it's worth looking back in history

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Speaker 1: for this and just to remind our audiences that in

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Speaker 1: twenty twenty two, I believe more than one hundred thousand

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Speaker 1: Americans died as a result of drug overdoses, most of

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Speaker 1: them due to fentanyl, which is a highly addictive drug.

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Speaker 1: And interestingly, I found this statistic or rather, this piece

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Speaker 1: of research really interesting. I've written about it before for

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Speaker 1: Bloomberg Opinion. But a Pew Research Center study into voter

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Speaker 1: concerns published in February ahead of the election found that

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Speaker 1: over half of the people surveyed prioritized reducing the availability

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Speaker 1: of illegal drugs over reducing the budget deficit and improving

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Speaker 1: the job market. And that just goes to show how

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Speaker 1: important an issue this is for American voters. And I

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Speaker 1: think that is at the heart of why you're seeing

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Speaker 1: Donald Trump saying, look, we need to stop these exports

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Speaker 1: of fentanyl from China. He said it before. The issue

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Speaker 1: with fentanyl exports is, even though the Chinese say that

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Speaker 1: they have taken some action, and to be fair to them,

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Speaker 1: they have. The problem is the roots through which these

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Speaker 1: drugs find themselves back in the United States, and it

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Speaker 1: is also through Mexico through a sort of complex network

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Speaker 1: of illegal cartels. Now it will be really interesting to

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Speaker 1: see what happens if and when the two sides sit down.

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Speaker 1: You know, Donald Trump has talked about meeting Siegenpin going

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Speaker 1: to China. He had a conversation with him on the

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Speaker 1: phone last Friday, and I wouldn't be surprised if this

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Speaker 1: is at the top of the agenda as a way

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Speaker 1: to say, look, crack down on the fentanyl trade seriously

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Speaker 1: and realistically, because it really matters to my constituents, and

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Speaker 1: then we can discuss tariffson trade.

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Speaker 2: Christmas.

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Speaker 3: Also reading your latest piece about Taiwan and how Taiwan

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Speaker 3: to be thinking about Donald Trump as president, I mean,

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Speaker 3: is there an opportunity here for the island?

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Speaker 1: Well, yes and no. You know, I've just been in

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Speaker 1: Taipei for the last week and it was really interesting

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Speaker 1: to me talking to a variety of people from across

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Speaker 1: the political as well as the business sector, and I

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Speaker 1: think it's fair to say that most people are very

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Speaker 1: concerned about a Trump presidency, partly because they simply don't

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Speaker 1: know what to expect.

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Speaker 9: Now.

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Speaker 1: Taiwan, of course, has depended on the United States for

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Speaker 1: its security. China claims it as its own and has

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Speaker 1: threatened to take it by force, if not through peaceful means.

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Speaker 1: You know, by twenty forty nine is the sort of

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Speaker 1: deadline that the Chinese have set for themselves. Most analysts

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Speaker 1: believe it's somewhere in between twenty twenty seven and twenty

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Speaker 1: thirty five, so it's not far away. Right, At the

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Speaker 1: same time, there are precious political pressures inside Taiwan that

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Speaker 1: has seen the domestic defense budget paralyzed in parliament. Trump

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Speaker 1: has talked about Taiwan having to increase defense spending up

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Speaker 1: to ten percent of GDP. All of that is in

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Speaker 1: doubt right now, and so the Taiwanese are basically in

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Speaker 1: a situation where they have no way to convince Trump

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Speaker 1: to protect them. One of the things I've argued, though

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Speaker 1: in the latest column that you've talked about, is that

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Speaker 1: if you increase investment into the United States from Taiwanese companies,

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Speaker 1: as well as open up market access and make business

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Speaker 1: for American companies easier to do in Taiwan, that is

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Speaker 1: one way to convince the Trump administration that, look, you know,

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Speaker 1: this is an island that is worth protecting, not least

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Speaker 1: because of the massive semiconductor industry there.

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Speaker 2: Yeah, does that transactional approach then translate into more military security.

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Speaker 2: It's a really interesting piece that you've written, Krishma. Thank

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Speaker 2: you so much for being with us this morning and

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Speaker 2: talking about the big picture of the relationship between the US,

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Speaker 2: the new president Donald Trump, and China. Bloomberg Opinion columns

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Speaker 2: Karishma Buswani.

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Speaker 3: Well, the announcements coming from Washington are being closely watched

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Speaker 3: in Davos as well, where business and political leaders are

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Speaker 3: attending the World Economic Forum. Bloomberg TV anchor Jamani Versacchi

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Speaker 3: is there and she joins us. Now, Jamana, good morning.

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Speaker 3: What is the mood among CEOs there when it comes

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Speaker 3: to the announcements we're getting out of Donald Trump on

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Speaker 3: the White House? Is it fears over tariffs or excitement

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Speaker 3: about deregulation.

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Speaker 9: Yeah, well, it depends which geographically location you're talking about. Definitely.

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Speaker 9: The American executives we've spoken to are feeling really excited

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Speaker 9: about the year to come. Yesterday on our banking panel

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Speaker 9: at the World Economic Forum, we spoke to Mary Erdos,

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Speaker 9: who runs JP Morgan Wealth and Asset Management, and she

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Speaker 9: basically said, this is go time. They're ready to go.

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Speaker 9: They're really excited. Of course, JP Morgan coming on back

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Speaker 9: of their most profitable year on record last year, and

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Speaker 9: there's this real feel amongst the business community, at least

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Speaker 9: in the US, that the administration will be pro business,

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Speaker 9: pro growth, deregulation or perhaps not even deregulation, but a

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Speaker 9: more permissible approach to regulation. All of those things will

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Speaker 9: be good for M and A activity, liquidity, and deal making.

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Speaker 9: So those are some of the tables for the US economy.

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Speaker 9: I think from the European standpoint, obviously, the perspective is

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Speaker 9: a little bit different because of some of the growth headwinds,

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Speaker 9: but also the regulatory headwinds. And that was one of

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Speaker 9: the conversations that has come up as well, and we

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Speaker 9: can talk more about this, but ultimately European banks were

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Speaker 9: bemoaning the fact that they're on the back foot versus

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Speaker 9: the US and UK counterparts simply because the European regulators

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Speaker 9: have decided to implement parts of Basil three, while other

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Speaker 9: jurisdictions have the state delayed or postponed the decision altogether.

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Speaker 2: So is there a real fear that Europe might fall

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Speaker 2: behind as Trump pursues this America First agenda? Does anyone

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Speaker 2: have any solutions?

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Speaker 9: I thought the opinion piece that Mark Champion wrote today

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Speaker 9: on the Terminal was really interesting because he said President

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Speaker 9: Trump and Ursula vonder Len, who spoke yesterday, presented two

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Speaker 9: completely different pictures of how they see their own economies.

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Speaker 9: President Trump, on one hand, was painting this dystopian picture

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Speaker 9: of the US economy and decline and that he's going

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Speaker 9: to turn it around. Arcevon Delane, on the other hand,

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Speaker 9: was talking about the vision that europeads for the future

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Speaker 9: and the innovation drive, but of course in reality it's

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Speaker 9: quite the opposite. It's in fact, people are more excited

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Speaker 9: about the productivity and growth I'll look for the US

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Speaker 9: than they are for Europe. I think the discussions around

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Speaker 9: Europe more long term are these very existential questions about

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Speaker 9: what Europe can do to boost growth and boost productivity,

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Speaker 9: and that comes down to investment, right, infrastructure, deregulation of course,

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Speaker 9: as we spoke about, but perhaps reducing some of the

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Speaker 9: red tape and the bureaucracy that it takes to get

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Speaker 9: things across the line, and to help invest more in

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Speaker 9: technologies of the future as opposed to industries of the past.

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Speaker 3: Jaman, I think it's fair to say Donald Trump's casting

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Speaker 3: a fairly long shadow over this Davos meeting. But of

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Speaker 3: course there's lots more going on in the world. What

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Speaker 3: are the other key geopolitical conversations that are being had.

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Speaker 9: There, Well, there's quite a lot on the Middle East front,

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Speaker 9: of course, just speaking from my own perspective. I think

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Speaker 9: there really is this feeling that it's a new dawn

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Speaker 9: almost for the region, given the ceasefire that's in place.

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Speaker 9: And we will be speaking to the Iraqi president tomorrow,

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Speaker 9: amongst others in Saudi Finance Minister to take to get

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Speaker 9: there take on political developments in that part of the world.

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Speaker 9: But then within Europe, Bloomberg are having a very high

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Speaker 9: profile conversation later today with President Zelenski of Ukraine that

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Speaker 9: is going to be very interesting and high on the agenda.

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Speaker 9: Zelenski yesterday did give a speech and it was interesting

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Speaker 9: because he actually sort of took aim at Europe in

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Speaker 9: his speech yesterday, and he was saying that for too

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Speaker 9: long Europe has relied on Russian gas. It's time to

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Speaker 9: completely reduce that dependency. He also called on European allies

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Speaker 9: to continue to increase defence spending. So you've got to

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Speaker 9: think that perhaps his audience is one person, and that

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Speaker 9: one person is President Trump, who, by the way, will

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Speaker 9: also be giving a video address to Davos tomorrow. So

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Speaker 9: there's gonna be quite a lot of political news over

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Speaker 9: the next two of four hours.

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Speaker 3: This is Bloomberg Daybreak Europe. Your Morning brief on the

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