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

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Speaker 1: Daymakur podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Monday, the thirteenth of May here in London.

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Speaker 1: I'm Caroline Hepka.

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Speaker 2: And I'm Stephen Carroll. Coming up today, Vladimir Putin changes

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Speaker 2: his defense chief as Ukraine battles to hold on to territory.

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Speaker 1: Biden prepares to quadrupel tariffs on Chinese evs, but holds

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Speaker 1: off on more consequential levies.

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Speaker 2: Plus, we have the inside story on Europe's increasing reliance

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Speaker 2: on one company to supply its gas and what it

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Speaker 2: means for future prices.

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

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Speaker 2: Russian President Vladimir Putin has replaced his long standing defense

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Speaker 2: minister with his former economic aid The unexpected change signals

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Speaker 2: his administration's focus on growing the Russian war economy. Former

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Speaker 2: MI six Intelligence of Christopher Steel says the move highlights

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Speaker 2: deeper fault lines in the country's leadership.

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Speaker 3: I think what this indicates it's not just a reshuffle

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Speaker 3: along normal governmental lines. It's really quite serious instability right

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Speaker 3: in the heart of this regime and it's astonishing to be.

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Speaker 2: Honest, Christopher Steel speaking there. The reshuffle comes just days

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Speaker 2: after the Russian president was sworn in for a fifth term,

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Speaker 2: extending his quarter century in power.

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Speaker 1: Vladimir Zelenski is urging his people not to panic as

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Speaker 1: Russia advances into Ukraine's Kharkiv region. The president used his

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Speaker 1: regular Sunday statement to tell Ukrainians to trust their army

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Speaker 1: despite the quote extremely difficult situation on the outskirts of

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Speaker 1: the city of Vochansk. Anna Borchevskaya, who is an expert

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Speaker 1: in Russian policy, says an escalation in fighting was to

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Speaker 1: be expected.

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Speaker 4: US Congress took a very long time to supply aid

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Speaker 4: to Ukraine, and Russia has been taking advantage of this delay.

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Speaker 4: On top of that, one way or the other, with

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Speaker 4: or without aid provision, analysts expected a Russian offensive calm summer.

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Speaker 1: Russian policy expert Anna Botchevskaya, speaking there, Russia's Defense Ministry

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Speaker 1: on Sunday claimed that its troops had made deeper advances

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Speaker 1: into the Harkive border regent quote, liberating a total of

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Speaker 1: nine settlements over the weekend.

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Speaker 2: Richie Sinak will pitch himself as the candidate who can

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Speaker 2: achieve a more secure future for Britain in a speech

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Speaker 2: in London today, reframing the election to focus on security.

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Speaker 2: The Prime Minister will also confirm that a UK general

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Speaker 2: election will take place this year rather than by the

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Speaker 2: January twenty twenty five deadline. The speech will be Sinak's

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Speaker 2: first address since his party lost more than half of

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Speaker 2: the council seats they were defending during recent local elections

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Speaker 2: and the defection of one of his MPs to labor.

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Speaker 1: President Biden will drupel tariffs on Chinese electric vehicles this

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Speaker 1: week and sharply increase levees for other key industries. The

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Speaker 1: announcement is the culmination of a near two year review

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Speaker 1: of tariffs first imposed by Biden's likely presidential election rival,

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Speaker 1: Donald Trump. Bloomberg's chief North Asia correspondent Stephen Engele has

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Speaker 1: the details.

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Speaker 5: Total tariffs on Chinese made electric vehicles will rise to

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Speaker 5: one hundred and two point five percent, up from twenty

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Speaker 5: seven point five percent right now, So that's an increase

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Speaker 5: of two hundred and seventy two percent, nearly quadrupling. Other

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Speaker 5: tariffs will be doubled or tripled in targeted industries, including batteries,

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Speaker 5: solar cells, steel, and aluminum. It's not clear yet which

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Speaker 5: items were spared in this new tariff hike, but sources

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Speaker 5: say there won't be any rate reduction.

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Speaker 1: Bloomberg Stephen Angel. He also points out that Biden's plan

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Speaker 1: for more tariffs is mostly symbolic, as China doesn't rely

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Speaker 1: on US consumers in those sectors. Chinese evs were locked

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Speaker 1: out of the US market years ago by existing tariffs,

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Speaker 1: while solar firms mostly export to the United States from

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Speaker 1: third countries, avoiding similar curves.

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Speaker 2: The US Secretary of State says Israel risks fueling a

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Speaker 2: hamas in certainty in post war Gaza if it continues

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Speaker 2: on its current path. It's the latest warning in a

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Speaker 2: steady escalation of US concern about Israel's conduct as the

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Speaker 2: country prepares for a likely invasion of the southern Gaza

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Speaker 2: city of Rafa. Speaking to NBC's Meet the Press, Anthony

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Speaker 2: Blincoln had this warning.

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Speaker 6: Israel's on the directory potentially to inherit an insurgency with

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Speaker 6: many armed and moss left, or if it leaves a

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Speaker 6: vacuum filled by chaos, filled by anarchy, and probably refilled

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Speaker 6: by AMAS.

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Speaker 2: Blincoln also broadly questioned Israel's approach saying the Biden administration

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Speaker 2: hasn't seen a credible Israeli plan for shielding civilians in

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Speaker 2: an assault on RAFA, nor a post war plan. The

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Speaker 2: comments come just days after Israeli Prime Minister Benjaminnette Yahoo

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Speaker 2: struck a defiant tone, saying if we have to stand alone,

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Speaker 2: we will stand alone.

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Speaker 1: Amazon, Pfizer, and Morgan Stanley are among companies expected to

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Speaker 1: boost their presence in France. A flurry of new investments

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Speaker 1: in the country will be unveiled today as President macwont

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Speaker 1: welcomes one hundred and eighty business leaders to Versailles for

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Speaker 1: the annual Choos France Summit. Bloomberg's Alberto nor Deli says

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Speaker 1: the event, signed to make France a financial hub, is

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Speaker 1: helping the country to win investment over its European peers.

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Speaker 7: If you look at the specific French initiative, what sets

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Speaker 7: it apart from other similar initiatives, saying other European countries

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Speaker 7: is really the profile of the event. Because most countries

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Speaker 7: have FDI forums or events to try and attract business

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Speaker 7: and investment. The thing that's kind of different about the

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Speaker 7: French initiative is its profile. The pomp.

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Speaker 1: Bloomberg's a Correspondent at Large for Europe, Alberto our Deli.

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Speaker 1: Then the ELISE said in a statement that the fifty

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Speaker 1: six projects to be unveiled this week out to more

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Speaker 1: than fifteen billion euros invested in total, and that top's

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Speaker 1: last year's thirteen billion euros. French Finance Minister Bruno Lamire

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Speaker 1: will host the lunch later today for top bankers, including

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Speaker 1: JP Morgan CEO Jamie Diamond and Goblin Sachs CEO David Solomon.

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Speaker 1: Now in a moment we'll get more details on the

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Speaker 1: changes at the top of Russia's defense ministry, why they're happening.

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Speaker 1: Plus we'll also tell you about one Norwegian company and

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Speaker 1: why it has now an outsized influence on nat gas

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Speaker 1: prices natural gas prices across Europe. But then another story

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Speaker 1: called ore I this morning. This of course after Eurovision

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Speaker 1: over the weekend.

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Speaker 2: Yes, and Dean, I know, Caroline, your entire weekend was

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Speaker 2: dominated by Eurovision, you and the oard one hundred and

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Speaker 2: sixty million other people that were watching it. But the

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Speaker 2: focus already moving to the winner, Switzerland, and where and

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Speaker 2: how they're going to host the event next year. And

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Speaker 2: this is something that our colleagues have been writing about

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Speaker 2: this morning. This is to do with the Swiss public

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Speaker 2: broadcaster SRG, because it's them that hosts the event and

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Speaker 2: how they're going to pay for it, because there's been

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Speaker 2: a debate ongoing in sweats Land about funding for the broadcaster.

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Speaker 2: The EBU estimates to cost ten to twenty million euros

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Speaker 2: to host it. Some countries spend much much more. I mean,

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Speaker 2: you saw the scale of the events in Sweden last week.

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Speaker 2: You can see where the money goes. The debate is

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Speaker 2: where is it going to be Basil, Zurich and Geneva

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Speaker 2: are thought to be the most likely host city candidates,

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Speaker 2: and the major arenas in those that he's already confirmed,

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Speaker 2: they're in talks about getting the event secures.

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Speaker 1: To my mind, ten to twenty million euros is a pittance,

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Speaker 1: frankly to get the sort of audience and also the

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Speaker 1: boost from tourism and the attention. This is something way

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Speaker 1: bigger than the Super Bowl in terms of viewership. But

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Speaker 1: as you say, in a small country, there are a

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Speaker 1: lot of questions about how to host so many people

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Speaker 1: who come to sit.

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Speaker 2: Yeah, Indeed, some of the studies that we're done after

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Speaker 2: Liverpool hosted the event last year, as well, saw a

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Speaker 2: major added value compared to the cost involved, but it's

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Speaker 2: still a big bill and someone has to pay for it.

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Speaker 1: Absolutely right. From that story from the weekend, let's focus

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Speaker 1: then on Russia. The appointment of a new defense minister

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Speaker 1: just days after Vladimir Putin was sworn in for a

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Speaker 1: fifth term. The economist Andre Bullosov, currently the first Deputy

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Speaker 1: Prime Minister, will take over from Sergei Shoigu at a

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Speaker 1: critical time in the Russian War in Ukraine. Let's get

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Speaker 1: more now from Bloomberg's Tony Halpin, who leads are Economics

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Speaker 1: and Government team coverage of Russia. Tony, good morning, and

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Speaker 1: thank you for being with us. Why do we think

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Speaker 1: that Putin made this change in the defense ministry now.

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Speaker 8: Good morning. Well, I think there are two reasons. Really. First,

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Speaker 8: it's an expression of disappointment, I think on Putin's part

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Speaker 8: that Russia hasn't made more progress in Ukraine than it

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Speaker 8: has now the wars in its third year. It's making

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Speaker 8: some advances, but there've been no big breakthroughs for quite

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Speaker 8: a long time. And you'll recall that Shoigu was the

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Speaker 8: target of a lot of criticism when the Wagner mercenary

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Speaker 8: chief Preclusion launched his mutiny last year. But also because

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Speaker 8: I think he's determined to get more value of the

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Speaker 8: money from the money being spent in Russia's economy to

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Speaker 8: support the war. He's mobilizing the Russian economy to get

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Speaker 8: the maximum possible effect in support of the military in

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Speaker 8: the field, to try and make more advance It.

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Speaker 2: Is this a signal of a change in direction then,

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Speaker 2: of how the Russian war in Ukraine is going to

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Speaker 2: be conductor?

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Speaker 8: Well, I think it signals an intensification of Russian efforts.

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Speaker 8: As we've seen Russian forces are trying to attack even

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Speaker 8: as we speak put in once progress. He wants to

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Speaker 8: see success on the battlefield. It's costing Russia an awful

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Speaker 8: lot of money, and unlike Ukraine, which can call on

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Speaker 8: the support of Europe and the US to help it

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Speaker 8: in its fight, Russia must rely almost entirely on its

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Speaker 8: own resources, and it's got a fairly limited resource in comparison.

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Speaker 8: So he's trying to get the maximum possible effect from

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Speaker 8: every rule that's being spent on the war economy.

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Speaker 1: Yeah, okay, And what about Andre Belosov, I mean he's

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Speaker 1: a trained economist, is he going to be able to

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Speaker 1: help with that. What can you tell us about him

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Speaker 1: as a person as a leader.

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Speaker 8: Yeah, he's a man with no military background whatsoever, which

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Speaker 8: is not in fact unusual in Russia. The last few

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Speaker 8: defensements that have been people from civilian background. But what

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Speaker 8: this singershiz Belausov is the fact that he's very much

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Speaker 8: an advocate for greater state involvement and state control of

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Speaker 8: the Russian economy. So I think we can expect to

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Speaker 8: see him finding ways to increase efficiencies, to mobilize the

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Speaker 8: economy to the maximum in defense output in order to

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Speaker 8: generate more and more weapons to try and ensure that

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Speaker 8: Russia makes some progress on the battle.

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Speaker 2: You mentioned there are some of the latest advances that

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Speaker 2: Russia has made in Ukraine as well. I wonder if

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Speaker 2: you could just bring us up to day as to

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Speaker 2: where exactly things are in Ukraine at the moment.

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Speaker 8: Yes, and then you've already mentioned President Dolenski has said

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Speaker 8: that things are extremely difficult on the battlefront of the moment.

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Speaker 8: The head of the Ukrainian Army says fierce battles are

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Speaker 8: taking place around the Parkiv region in the northeast as

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Speaker 8: Russia tries to push ahead there. Putin has already said

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Speaker 8: in recent weeks that he wants what he calls a

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Speaker 8: buffer zone along that border area between Ukraine and Russia,

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Speaker 8: partly to protect Russian cities, particularly Belgrade, from attack by

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Speaker 8: Ukraine's drones. So it seems that Russia is trying to

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Speaker 8: implement that plan and to try and push forward and

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Speaker 8: seize some territory. But fierce battles are going on all

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Speaker 8: across the front line as we've been.

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

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Speaker 1: this morning. Bloomberg's Tony Halpin, who leads our economics and

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Speaker 1: government team covering Russia, thank you so much.

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Speaker 2: Turn another story. Now, Europe now relies on Norway for

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Speaker 2: one third of its natural gas, and its flagship company, Equinor,

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Speaker 2: now influences the ups and downs of the continent's gas prices.

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Speaker 2: Our European gas supporter, Priscilla Azevedo Roca, has been looking

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Speaker 2: into the story and she joins us this morning for more.

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Speaker 2: Good morning, Priscilla. How important is Equinor to Europe's energy supplies?

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Speaker 9: So Equinor, which is Norway's biggest toiling guess company, has

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Speaker 9: become the main supplier of guests to Europe following the

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Speaker 9: invasion of Ukraine when Europe lost most of it supplies

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Speaker 9: that he was getting from Russia. So Equinor now accounts

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Speaker 9: for roughly a third of the guests that we all

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Speaker 9: use in the UK and continue to Europe. So it's

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Speaker 9: one of the main sources.

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Speaker 1: Yeah, absolutely, so it's helping to keep the lights on.

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Speaker 1: But how did that happen then? So swiftly.

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Speaker 9: It was indeed very swiftly. So Equinor was already a

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Speaker 9: good supplier of energy to Europe, So the relationship was

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Speaker 9: already there. The pipeline were in place, and the infrastructure

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Speaker 9: was there, because one thing with energy is that infrastructure

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Speaker 9: takes a long time to build. And whilst Europe is

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Speaker 9: indeed deploying its renewable capacity, there's more wind and solar

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Speaker 9: being built. The pipeline is connecting Norway with Scotland and

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Speaker 9: with continuing to Europe and Germany were already in place.

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Speaker 9: So at the time Norway started pumping out more gas

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Speaker 9: from its facilities and exporting more and less year or

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Speaker 9: the year before, they sent records supplies to Europe.

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Speaker 2: Are there any parallels here, Pasella between Europe's dependent on

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Speaker 2: Russian gas before the invasion of Ukraine.

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Speaker 9: Yes, there are in a sense. At the other time,

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Speaker 9: they're not. Equinor and gas from There are two very

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Speaker 9: different companies. One is Norwegian and the other one is Russian.

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Speaker 9: And Norway has been a reliable supplier to Europe for

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Speaker 9: a long time. But the market here.

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Speaker 4: That they that they.

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Speaker 9: Equate now like the Equinor has now compared to gas

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Speaker 9: from Head pre invasion of Ukraine was roughly similar. And

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Speaker 9: because the energy markets are so fragile and still Europe

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Speaker 9: is trying to rebuild its energy sources following the invasion

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Speaker 9: and the trauma that came along with it. Every time

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Speaker 9: there's any problems in one of Equinor's facilities or they

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Speaker 9: go into unplanned outages, or there's any indication to guess

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Speaker 9: traders that there's going to be a tightness of supplying

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Speaker 9: to the continent, prices move quite a lot. But this

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Speaker 9: is a mere consequence of this feeling that things are

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Speaker 9: not as stable as they used to be.

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Speaker 1: Yeah, and perhaps you know, the concern now much more

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Speaker 1: pertinent for Europe of where they're getting the energy supplies

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Speaker 1: from and what's been the response then from European leaders,

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Speaker 1: Priscilla European leaders.

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Speaker 9: They have been very welcoming towards Equinor, towards Norwegian's involvement

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Speaker 9: in being there and providing what the co energy security

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Speaker 9: to the continent, and they have been very accepting to it.

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Speaker 9: But with this realization that at the same time, the

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Speaker 9: renewables capacity and the whole energy transition wasn't going to

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Speaker 9: be ready in time. So whilst we avoided blackouts because

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Speaker 9: of lower energy consumption because of mild winters and so on,

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Speaker 9: Europe has been extremely lucky. Equinor also played a very

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Speaker 9: very important role.

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Speaker 9: Europe