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

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Speaker 2: This is the Bloomberg Day BAQ podcast, available every morning

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Speaker 2: on Apple, Spotify or wherever you listen. It's Thursday, the

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Speaker 2: fifteenth of May in London. I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carroll.

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Speaker 1: Coming up today, Vladimir Putin appoints low level officials for

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Speaker 1: today's Ukraine talks, possibly dashing Zelensky's hopes for a face

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Speaker 1: to face meeting.

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Speaker 2: Veteran US investor Stephen jen says America could require a

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Speaker 2: trust moment to force a deficit course correction.

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Speaker 1: Plus hitting the brakes on its high end ambitions. Why

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Speaker 1: Berbery's CEO is calling time on the British fashion labels

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Speaker 1: attempt to join the upper echelons of global luxury.

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

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Speaker 1: Russia's President Vladimir Putin has named a group of low

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Speaker 1: level officials to join peace talks with Ukraine in Turkey today,

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Speaker 1: while giving no indication that he plans to attend the

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Speaker 1: negotiations him self. President Zelensky had challenged Putin to meet

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Speaker 1: him for talks in Istanbul after the Russian leader offered

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Speaker 1: to resume direct negotiations to end the conflict. US President

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Speaker 1: Donald Trump was asked by reporters on Air Force one

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Speaker 1: about the possibility that Putin might attend, But I don't know.

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Speaker 4: And I know he would like me to be there,

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Speaker 4: and that's the possibility if we could hit the world,

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Speaker 4: be thinking tomorrow. We're all book the outcrust, the roster.

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Speaker 5: But you go if he goes, you.

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Speaker 4: Eight tomorrow, so we have over a full story. Now,

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Speaker 4: that doesn't mean I wouldn't do it to save metal

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Speaker 4: lives and come back.

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Speaker 3: But yeah, I think they're thinking about something. I don't

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Speaker 3: know that he would be there if I'm not there.

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Speaker 1: The US President was speaking on Air Force one as

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Speaker 1: Zelenski reiterated his willingness to hold direct talks with Putin,

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Speaker 1: even though he said he had little hope the Russian

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Speaker 1: leader would show up. The Ukrainian leader also said that

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Speaker 1: he would not attend talks unless they were held directly

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Speaker 1: with his Russian counterpart.

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Speaker 2: Meanwhile, foreign ministers in NATO are gathering to discuss the

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Speaker 2: future of European security ahead of a pivotal summit. The

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Speaker 2: diplomats meet in Turkey this morning to establish the agenda

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Speaker 2: for NATO's annual summit in June, where the US has

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Speaker 2: made a higher defense spending target a priority. Germany's Chancellor

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Speaker 2: Friedrich Mertz says the West needs to stand together.

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Speaker 6: It is of paramount importance that the political West, ladies

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Speaker 6: and gentlemen, does not allow itself to be divided, and

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Speaker 6: that is why I will continue to make every effort

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Speaker 6: to ensure the greatest possible unity between the European and

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Speaker 6: American partners.

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Speaker 2: Mertz's Germany is one of the countries taking on large

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Speaker 2: amounts of debt to rearm NATO estimates that the US

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Speaker 2: currently accounts for nearly two thirds of the alliance's defense expenditure,

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Speaker 2: with Canada and Europe funding the rest.

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Speaker 1: The UK is drawing up plans for a special visa

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Speaker 1: for foreigners who invest significant sums in Britain. Bloomberg understands

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Speaker 1: the plans would focus on getting the money for strategically

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Speaker 1: important sectors, including AI and clean energy.

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Speaker 3: James Wilcock has more.

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Speaker 7: Kiss Starmer may say Britain's experiment with migration is over,

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Speaker 7: but his government still seems to want foreign investors to come.

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Speaker 7: Ministers are weighing a new visa for anyone who invests

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Speaker 7: in Britain's strategic sectors. The potential move echoes US President

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Speaker 7: Donald Trump, who has promised a so called golden visa

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Speaker 7: to anyone who pays five million dollars to the US Treasury.

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Speaker 7: The UK proposal comes after a flurry of wealthy residents

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Speaker 7: have left the country after tax changes in London. James

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Speaker 7: Wilcock Bloomberg Radio.

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Speaker 2: The White House has announced deals with Kuttar Totally more

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Speaker 2: than two hundred and forty three billion dollars, laying the

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Speaker 2: groundwork for a bigger one point two trillion dollar economic

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Speaker 2: pledge with the country now. The agreements include a ninety

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Speaker 2: six billion dollar plan for cut Our Airways to acquire

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Speaker 2: Boeing aircraft and a nearly two billion dollar agreement for

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Speaker 2: cut out A buy US drones. The announcement comes on

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Speaker 2: the second leg of President Trump's tour of the Middle East,

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Speaker 2: during which he's focused heavily on securing investment. Michael Froehman,

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Speaker 2: president of the Council on Follign Relations, says the deals

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Speaker 2: could be pivotal.

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Speaker 8: I think some of the deals are likely to produce

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Speaker 8: investments here and exports very importantly to those countries over

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Speaker 8: the medium term. Some are probably more along the lines

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Speaker 8: of agreement to discuss more investment down the road. And

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Speaker 8: the other thing about these investments is that it can

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Speaker 8: take years, if not a decade or more for the

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Speaker 8: shovels to actually get put in the ground, and very

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Speaker 8: importantly for jobs to be.

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Speaker 3: Created longer term.

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Speaker 8: But it's very positive when we're selling more exports to

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Speaker 8: other countries, like the planes and the engines that we're

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Speaker 8: in now.

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Speaker 2: That was Michael Foreman, the Council of Foreign Relations President

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Speaker 2: speaking there. Meanwhile, a separate US Saudi defense deal agreed

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Speaker 2: by Trump has been called into question. Critics of the

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Speaker 2: move saying that the deal lacks specifics and may include

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Speaker 2: repurposed agreements secured by previous US administrations. Experts have also

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Speaker 2: queried the country's ability to agree with those purchases tenure.

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Speaker 1: US treasury yields have been moving higher this month. Are's

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Speaker 1: Investor's Way plans by Congress to cut taxes while the

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Speaker 1: government is already running a large deficits, But one veteran

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Speaker 1: investor is suggesting the United States needs a layers trust

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Speaker 1: moment that brings to you and parts has more.

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Speaker 9: For bill currently moving through the House is set to

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Speaker 9: increase the US government's debt by at least three point

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Speaker 9: three trillion dollars by twenty thirty four. That's the official

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Speaker 9: view of the Committee for a Responsible Budget. The deficit

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Speaker 9: is already large by any normal measure, above six percent

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Speaker 9: of GDP over each of the last two years, levels

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Speaker 9: normally only seen in recessions or wars, and that's left

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Speaker 9: to vester and investor Stephen Jen of Eurizon SLJ Capitol

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Speaker 9: wondering if the US needs to see a repeat of

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Speaker 9: what happened to Liz Trust with US tenure yields topping

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Speaker 9: five percent, He says it's not enough to warn people

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Speaker 9: about the blooning deficit. Quote they need to be punished.

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Speaker 9: Jen adds, I'm not giving up completely, but I'm seeing

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Speaker 9: that we don't seem to be moving in the right direction,

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Speaker 9: and I'm fearful of what may happen in London.

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Speaker 3: I'm you in pots of Bloomberg Radio.

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Speaker 2: In his first interview since handing over the reins of

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Speaker 2: Berkshire Hathaway, the billionaire investor Warren Buffett says he made

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Speaker 2: the decision to step down after finally feeling his age.

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Speaker 2: Speaking to The Wall Street Journal, the ninety four year

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Speaker 2: old said that there was no magic moment when he

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Speaker 2: knew it was the right time to retire as CEO,

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Speaker 2: but he had observed how much energy his successor, greg Abel,

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Speaker 2: brought to every working day and how his own days

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Speaker 2: had slowed. He said that he did not feel his

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Speaker 2: age until he was about ninety. Once he did, the

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Speaker 2: process was irreversible. When asked about staying on a Berkshire

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Speaker 2: as chairman, he said, my health is fine. I get

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Speaker 2: to work with people I love, they like me pretty

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Speaker 2: well and we have a good time.

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Speaker 1: The actress Scarlett Johansen has said the highly filmmakers are

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Speaker 1: being quote muzzled by big tech guys. In an interview

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Speaker 1: with Vanity Fair magazine, the Avengers star noted that many

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Speaker 1: of the people who funded the film industry attended US

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Speaker 1: President Donald Trump's inauguration. She also said boundaries should be

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Speaker 1: set for the use of artificial intelligence, saying she was

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Speaker 1: angered at how eerily similar one of the voices on

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Speaker 1: chat GPT was to hers. Last year, the Marvel star

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Speaker 1: alleged that OpenAI used her voice without her consent. The

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Speaker 1: company's CEO Sam Altman denied the claims, but did pause

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Speaker 1: the system in response.

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Speaker 2: Those are some of our top stories for you this morning.

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Speaker 2: Let's get to the market. So the actually valley waivering.

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Speaker 2: You've got S and P five hundred even futures down

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Speaker 2: by two tents of one percent. Socks in Asia are

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Speaker 2: falling for the first time in five days. MSCI Asia

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Speaker 2: Pacific Index is down three tens of one percent. US

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Speaker 2: Treasury yields climbed yesterday thirty a year, briefly touching four

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Speaker 2: ninety eight this morning, stabilizing since then. You've got markets

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Speaker 2: thinking about the Trump tax bill, also receive session fears

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Speaker 2: do seem to be abating, the market continuing to price

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Speaker 2: out fed cut. So two year yields have risen over

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Speaker 2: the course of this week around thirteen basis points. Gold

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Speaker 2: has hit a one month low, falling more than one

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Speaker 2: percent this morning, Oil tumbling on Iran deal prospects, and

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Speaker 2: also lots to think about for the rest of today.

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Speaker 2: Walmart earnings, US retail sales, and you've also got US

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Speaker 2: UK GDP figures today.

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Speaker 3: So those are the markets in the moment.

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Speaker 1: We'll bring you more and what to expect from the Russia,

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Speaker 1: Ukraine talks in Turkey, plus Canberbery's cost cutting efforts finally

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Speaker 1: helped to turn around the struggling brand. Put another story

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Speaker 1: that caught our eye this morning, A big deal in

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Speaker 1: restaurant reservations. If you're one of those people who has

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Speaker 1: to set an alarm to make sure that you're going

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Speaker 1: to be able to book a table at the right time.

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Speaker 1: Uber is now getting in on the act. They're going

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Speaker 1: to be launching their own dine out icon where you

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Speaker 1: can reserve restaurant tables via the Uber system essentially, and

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Speaker 1: the UK is going to be one of the test

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Speaker 1: markets for us.

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Speaker 2: Yeah, in September. Uber's offering incentives, of course, a discount

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Speaker 2: on your Uber taxi to the restaurant if you book

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Speaker 2: using Uber Eats. Also, Open Table have got their own

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Speaker 2: sort of set of incentives for their members. It's going

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Speaker 2: to launch in London and in Sydney. I mean, is

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Speaker 2: this basically the height of convenience? Uber just gets to

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Speaker 2: organized your whole night out, does it?

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Speaker 3: Actually it's penialization.

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Speaker 1: I think that I'm looking at it this as well,

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Speaker 1: because there's going to be essentially a new tier that

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Speaker 1: they're going to be rolling out later this idea. It'll

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Speaker 1: be able to priority book certain tables if you are,

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Speaker 1: you know.

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Speaker 2: That just annoys me because then you know, basically does

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Speaker 2: it leave us all increasingly siloed depending on what app

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Speaker 2: system you happen to use and which tier of views

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Speaker 2: that you happen to be.

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Speaker 3: I don't know that.

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Speaker 1: And it's also the feature of there are certain cities

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Speaker 1: in the world, and London and New York or two

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Speaker 1: of them where it is you have to plan things

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Speaker 1: so far in advance, because getting restaurant reservations requires that

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Speaker 1: you essentially know what you're going to be doing a

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Speaker 1: Saturday night three months from now, try and get into someone.

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Speaker 2: Maybe that's your social calendar sever count Anyway, there we are.

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Speaker 2: We will put a link in the show notes if

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Speaker 2: you want to read a bit more about what Uber

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Speaker 2: is planning. Of course, door Dash their rival, you know,

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Speaker 2: not to be outdone, they are also planning something.

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Speaker 1: They have a partnership with seven Rooms was one of

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Speaker 1: the other big booking platforms as well, but they still

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Speaker 1: seemed to be a move that. I mean, there's a

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Speaker 1: secondary market for restaurant reservations in New York where you

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Speaker 1: can buy somebody else's restaurant reservation because there are people

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Speaker 1: who are gaming the system.

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Speaker 3: Material extent.

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Speaker 1: I mean, you know, I quite like there's quite a

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Speaker 1: lot of restaurants now that you have to film them,

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Speaker 1: because essentially that knocks out a whole load of people

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Speaker 1: and stops people at double or triple booking restaurants, which

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Speaker 1: you know, it's not something that I've gotten into, and

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Speaker 1: I do have friends that do it.

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Speaker 10: Yeah.

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Speaker 2: Absolutely, gosh, there we go, restaurant bookings and new Uber

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Speaker 2: deals coming your way. Right, let's think about the main story,

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Speaker 2: of course today Ukraine peace talks in Istanbul in Turkey.

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Speaker 2: Today are not expected to see direct negotiations between Vladimirsninski

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Speaker 2: and Vladimir Putin. No actually to involve President Trump, who

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Speaker 2: suggested that his schedule is too full to include another

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Speaker 2: stop on his two of the Middle East. You heard

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Speaker 2: the little clip of him just in our news roundup.

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Speaker 2: This as the NATO foreign ministers are also meeting informally

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Speaker 2: in a different city in Turkey, and Antelaia joining us

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Speaker 2: now to discuss is Bloomberg's executive editor for Economics and Government,

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Speaker 2: Flavia kraus Jackson. Very good to have you on the program. Flavia,

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Speaker 2: Good morning. What are we expecting from today's Russia Ukraine

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Speaker 2: talks firsty, do you think that they could yield any progress?

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Speaker 5: I think anyone who's going out definitively and saying that

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Speaker 5: the three way Trump Zelenski cut meeting is not going

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Speaker 5: to happen and might beginning over those skates, I mean,

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Speaker 5: I think we've just been listening to mixed accounts, and

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Speaker 5: I think if you're listening to Trump's words carefully, he's

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Speaker 5: trying to essentially coach Putin out.

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Speaker 3: So I think we shouldn't exclude the.

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Speaker 5: Possibility that this actually may at some point come together

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Speaker 5: later in the weekend. So I wouldn't give up hope

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Speaker 5: just yet on that potentially happening. It would be a

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Speaker 5: huge coup for Trump if it did come through, because

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Speaker 5: just think about it, it's his first overseas Foray. You know,

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Speaker 5: obviously he went to the pub's funeral, but he's come

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Speaker 5: here in the Middle East. He signed what looks on

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Speaker 5: paper like you know, lots of deals worth billions, you know,

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Speaker 5: one brillion at one point, even though that that.

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Speaker 3: Figure should be questioned. And if he.

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Speaker 5: Manages to end the trip by diverting going to Turkey

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Speaker 5: and who knows, maybe even going to the pub's funeral,

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Speaker 5: what a trip.

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Speaker 3: This would be well.

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Speaker 1: Another conversation that Donald Trump is dominating is that meeting

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Speaker 1: of NATO Foreign minister is also taking place in Turkey

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Speaker 1: and questions about defense spending.

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Speaker 3: Could five percent be possible?

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Speaker 5: I mean, I think what we're looking at here is

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Speaker 5: the classic card of the deal, right, I mean, right

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Speaker 5: now it's two percent, and a lot of NATO members

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Speaker 5: are skirting the responsibilities and not doing that. Rote, who's

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Speaker 5: something of a Trump whisper and has been very good

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Speaker 5: in a way sarging the president's ego and kind of

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Speaker 5: trying to cajole people to spend more, has set the

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Speaker 5: target three point five and obviously there's that aspirational five percent.

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Speaker 5: So when we get to five percent, I very much

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Speaker 5: doubt it. I think it's a hard target. But I

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Speaker 5: think they're setting the scene so that NATO and the

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Speaker 5: Hague in June could be a success. And I think

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Speaker 5: to a certain degree, you know, Trump's invocation that you know,

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Speaker 5: America is no longer going to have to carry the

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Speaker 5: weight of, you know, defending Europe, and that sort of agreement,

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Speaker 5: that post war understanding of you know, the US being

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Speaker 5: the world's cop has ended, and so I think you know,

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Speaker 5: you can see this in Germany, with the with the

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Speaker 5: with the fact that they're obviously up there, gain there

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Speaker 5: that this is having an effect. But when these targets

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Speaker 5: will be reached as an entirely different question. Europe is

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Speaker 5: a far far away from being able to do anything

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Speaker 5: to actually defend itself, should ever be in conditions of war.

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Speaker 2: President Trump's Middle East trip that you mentioned has all

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Speaker 2: these defense deals in it and big price tags. I

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Speaker 2: mean a billion dollar deal for Qatar to buy Raythean systems,

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Speaker 2: the first international bar to get this system. Also, it

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Speaker 2: does come with some big question marks, as you've said,

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Speaker 2: the Job administration calling this one hundred and forty two billion.

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Speaker 2: Don't a deal with Saudi Arabia the largest defense sales

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Speaker 2: agreement in history. What are the question marks around all

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Speaker 2: of these numbers.

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Speaker 5: I think a lot of people are privately chuckling at

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Speaker 5: the ostentatiousness of these numbers. You know, all that glitters

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Speaker 5: is in gold, and I think you know, once you

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Speaker 5: kick the tires on all of this, you see very

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Speaker 5: much that all is not what it seems right. So

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Speaker 5: even look at the economic deals, we had one trillion

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Speaker 5: that actually the White House said six hundred billion, and

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Speaker 5: then once you start looking a little bit under the bonnet,

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Speaker 5: it looks more like three hundred billion. And it's a

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Speaker 5: very similar case, I think, frankly, with this one hundred

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Speaker 5: and forty two billion defense deal. I think Bruce Rydell

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Speaker 5: put it very well in one of the stories that

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Speaker 5: you know, if you compare that to what the Saundi

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Speaker 5: budget actually is, these numbers just simply don't stack up.

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Speaker 5: But I think what we're really missing here is the

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Speaker 5: symbolic value of all this. I mean, it was a

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Speaker 5: proper love right. I mean NBS was grinning from ear

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Speaker 5: to ear. Trump looked little bit tight at the beginning

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Speaker 5: of the trip, but you know, this is the kind

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Speaker 5: of trip he loves. It's sort of about the money,

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Speaker 5: the deal, the camaraderie and on on. You know, even

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Speaker 5: though the glitter of the billion dollar deals isn't quite

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Speaker 5: what it seems, the actual sort of partnership is very

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Speaker 5: very important. And I think, you know, even if you

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Speaker 5: just look at how Israel's Netanyahu is feeling a little bit,

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Speaker 5: you know, a silent spectator looking in, I think those

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Speaker 5: kind of optics tell the more important story.

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Speaker 1: Okay, Flavia christ Jackson our executive Edger for Economics the Government.

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Speaker 1: Thank you very much for joining us.

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Speaker 2: Now, Barbary results yesterday added to the decade of troubles

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Speaker 2: at the British fashion icon. Now it's out with elevating

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Speaker 2: the brand and in with cost cutting. Bloomberg's Tiva Adebaya

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Speaker 2: joins us with more on this story. Good morning, what's

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Speaker 2: been going wrong at Birbury? I think this feels a

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Speaker 2: bit like a moment, the realization of how difficult it's been.

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Speaker 3: Yeah, Krolyn.

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Speaker 10: It does seem that there comes a time in the

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Speaker 10: life of most luxury fashion houses when they face this

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Speaker 10: sort of tug of war really between creativity and economics,

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Speaker 10: and that seems to be the key issue I think

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Speaker 10: that's plaguing Berbery at the moment. Yes, the luxury sector

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Speaker 10: is facing a downturn, but it seems like Burbery's problems

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Speaker 10: are a bit worse. Their shares have massively underperformed the

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Speaker 10: S and P Global Luxury Index, for example, and the

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Speaker 10: brand does look like it's facing a bit of an

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Speaker 10: identity crisis that has been punctuated by faltering shares, and

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Speaker 10: that all came to a head yesterday when the CEO

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Speaker 10: Joshua Shulman announced that the firm is making historic job cuts.

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Speaker 10: They're getting rid of a fifth of their entire workforce,

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Speaker 10: and to his mind, Burbery is struggling really because it's

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Speaker 10: strayed too far from its traditional roots, and that's really

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Speaker 10: the internal tension that's been gripping the house for the

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Speaker 10: last few years. There was an attempt by the previous

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Speaker 10: creative director, Ricardo Tishy. He wanted to pivot the brand

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Speaker 10: into and also appeal more to Asian markets. You might

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Speaker 10: have seen the firm ditch its signature logo in favor

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Speaker 10: of this sort of double B monogram, playing into the

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Speaker 10: logo mania craze a bit, and they featured some designs

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Speaker 10: that were more akin to street war than heritage, so

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Speaker 10: not what you typically see from Birbary. But then they

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Speaker 10: switched back again and they brought in the new designer,

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Speaker 10: Daniel Lee from Botaga Vnetta. He's the current creator director.

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Speaker 10: He was really known at Botaga Fort spearheading viral It handbags,

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Speaker 10: a big focus on accessories. Under his leadership of Berbery,

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Speaker 10: we've definitely seen the brand come back further to its roots.

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Speaker 10: It said that he's bringing Britishness back and we saw

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Speaker 10: actually a couple of seasons ago they had a really

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Speaker 10: eye catching fashion Week campaign. It featured the takeover of

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Speaker 10: a traditional English cafe and also renaming Bond Street station

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Speaker 10: to Berberry Street. So there was a clear attempt to

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Speaker 10: really align the brand back with the idea of Britishness,

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Speaker 10: call Britannia. And now, actually, if you've been at Heathrow

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Speaker 10: Terminal five recently, you can see their spearhead campaign for

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Speaker 10: this year, which features a number of British icons. There's

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Speaker 10: Naomi Campbell in there, and they have also very closely

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Speaker 10: integrated the imagery of the Night, which is the traditional

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Speaker 10: Burbary logo and that's blazoned across the arrival section of

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Speaker 10: the Throat Airport. So it seems that this new CEO

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Speaker 10: is trying to sort of finally unlock the answers to

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Speaker 10: pleasing the burwary audience. That seems to be the key

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Speaker 10: issue they've been facing, falling out of touch with their

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Speaker 10: core consumer.

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Speaker 1: So the CEO's plan now seems to involve a lot

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Speaker 1: of cost cutting.

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Speaker 10: Yeah, it does seem like Shuman really wants to strip

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Speaker 10: things back to basis. On more than one level. He

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Speaker 10: looks like he's targeting a more mid market consumer and

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Speaker 10: that definitely tracks with his previous experience. He's led brands

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Speaker 10: like Coach and Michael Kre's really speak to that upper

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Speaker 10: mid elevated basics market. On the business side, he's also

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Speaker 10: planning to majorly pull back on spending, so perhaps an

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Speaker 10: end to those costly viral Fashion Week campaigns like naming

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Speaker 10: the Tube station for example. But essentially he thinks that

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Speaker 10: for too long Birbary has been trying to compete in

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Speaker 10: the sort of upper echelons of the fashion conture world.

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Speaker 10: They've been trying to compete with the likes of Patagua Vinnetta,

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Speaker 10: for example, bringing Daniel Lee and Jacques Mouse, and.

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Speaker 3: It's not working.

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Speaker 10: He says that there's been too much of an emphasis

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Speaker 10: on designing popular, expensive handbags and intricate designs, and now

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Speaker 10: he wants the brand to go back to doing what

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Speaker 10: it knows best, so that means more outerwear and crucially,

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Speaker 10: more of the traditional Berbery check print. Now, so far,

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Speaker 10: it looks like analysts like what he has to say.

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Speaker 10: Burbery shares were up seventeen percent at the close yesterday

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Speaker 10: following his results update.

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Speaker 3: And it should be noted that they.

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Speaker 10: Did actually outperform expectations in their most recent round of results.

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Speaker 10: So maybe he'll finally be the CEO who does manage

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Speaker 10: to marry up that echo nomic and creative side of Birbury.

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