WEBVTT - Bloomberg Daybreak: January 24, 2023

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<v Speaker 1>Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg

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<v Speaker 1>day Break for Tuesday January. Coming up this hour, the

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<v Speaker 1>Justice Department may sue Google as earliest. Today, we are

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<v Speaker 1>live with the latest new tensions between the US and China,

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<v Speaker 1>this time over Russia. Microsoft gets set to report earnings

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<v Speaker 1>and more job cuts come to Corporate America. Another mass

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<v Speaker 1>shooting in California Monday leaves seven dead, plus a majority

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<v Speaker 1>of New Yorkers one in battle. Republican Congressman Santos to resign.

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<v Speaker 1>I'm Michael barn Moore a hand. I'm John stash Our

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<v Speaker 1>in sports arranger went over Florida. The Islanders lost in

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<v Speaker 1>Toronto and they're playing the quarter finals at the Australian Open.

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<v Speaker 1>That's All's trended ahead on Bloomberg Daybreak on Bloomberg eleven

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<v Speaker 1>three on New York, Bloomberg one, Washington, d C, Bloomberg

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<v Speaker 1>one oh six one, Boston, Bloomberg nine sixties and Francisco

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<v Speaker 1>Sirius x M one nine team and around the world

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<v Speaker 1>on Bloomberg Radio dot Com and via The Bloomberg Business.

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<v Speaker 1>Good morning, I'm Nathan Hagar, and I'm kerin Moscow. Here

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<v Speaker 1>are the stories we're following today. We begin with a

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<v Speaker 1>looming government lawsuit against Google. We get the latest live

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<v Speaker 1>now with Bloomberg Steve Rappaport, Steve, good morning, Good morning,

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<v Speaker 1>Nathan and Karen. The Justice Department is poised to sue

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<v Speaker 1>Google for antitrust violations, alleging the tech giant unfairly dominates

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<v Speaker 1>the digital ad market. Google has argued competition and online

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<v Speaker 1>ads is quite healthy, noting its rivals include other power

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<v Speaker 1>players like Amazon, Meta and Microsoft Alphabet's. Google is number

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<v Speaker 1>one in the US digital ad market, controlling technology used

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<v Speaker 1>to buy, sell, and service online ads. The company is

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<v Speaker 1>projected to bring in nearly seventy billion dollars in US

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<v Speaker 1>online advertising revenue this year. Live in New York, I'm

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<v Speaker 1>Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. I'll

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<v Speaker 1>staying in Washington. Now. US China relations are in focus today.

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<v Speaker 1>The Biden administration has confronted Beijing with evidence sets a

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<v Speaker 1>j ties to Russia and support for Russia's war effort

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<v Speaker 1>in Ukraine. Details now from Bloomberg's Amy Morris in osroom

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<v Speaker 1>in Washington. Sources tell Bloomberg News that the U s

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<v Speaker 1>suspects some Chinese state owned companies maybe providing assistance for

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<v Speaker 1>Russia's war effort in Ukraine. The administration is reviewing the

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<v Speaker 1>evidence it's accumulated to determine its significance. No word on

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<v Speaker 1>what that evidence is. If the Biden administration finds that

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<v Speaker 1>Chinese companies are supporting the invasion and that China's government

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<v Speaker 1>knew about it or somehow involved, they would be forced

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<v Speaker 1>to decide how much to push back, and that could

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<v Speaker 1>risk opening a whole new area of dispute with China

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<v Speaker 1>in Washington. I'm Amy Morris, Bloomberg Daybreak. Thank you, Amy.

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<v Speaker 1>Let's turn back to these markets now, where we continue

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<v Speaker 1>to see a bullish start to the NASTAC one hundreds

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<v Speaker 1>coming off its best two day runs since November. It

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<v Speaker 1>gained two percent yesterday and the SMP five hundred is

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<v Speaker 1>up twelve percent from its October low. Still, Mike List,

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<v Speaker 1>senior portfolio manager at American Century invest San, says it

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<v Speaker 1>is a confusing time for investors. You've got lots of poses,

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<v Speaker 1>like like a strong job market, consumers still spending of

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<v Speaker 1>China's opening, and inflation slowing, but the negatives are race

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<v Speaker 1>may have to stay elevated for a while, housing to

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<v Speaker 1>drag miser contracting um, and you have elevated you political concerns.

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<v Speaker 1>So it is very confusing out there. Lots of cross

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<v Speaker 1>currents right now. Mike Liss with American Century Investments likes banks.

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<v Speaker 1>He says he is overweight in the sector. Well, Nathan,

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<v Speaker 1>Corporate earnings could be a determining factor to whether this

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<v Speaker 1>rally has legs. And this afternoon we hear from tech

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<v Speaker 1>heavyweight Microsoft and Bloomberg. Jeff Bellinger has a preview. Bloomberg

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<v Speaker 1>Intelligence says the software giants quarterly results could reflect continued

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<v Speaker 1>pressure on Windows and cloud products. Windows demand may have

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<v Speaker 1>softened because of weaker PC sales, and the rate of

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<v Speaker 1>growth for products from Azure two Dynamics three likely slowed.

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<v Speaker 1>But with Microsoft and other technology companies that have yet

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<v Speaker 1>to report, investors will be all ears when executives talk

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<v Speaker 1>about the outlook. Guidance from the sector could offer clues

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<v Speaker 1>to how long the pressure on earnings might last. Jeff Bullinger,

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<v Speaker 1>Bloomberg Daybreak. Okay, Jeff, thanks, We're seeing more job cuts

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<v Speaker 1>across corporate America. This morning, we get the latest on

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<v Speaker 1>that live with Bloomberg's Dan Schwartzman. Good morning, Dan, Good

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<v Speaker 1>morning Nathan and Karen. Bloomberg News learning that Gemini, the

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<v Speaker 1>firm led by the Winklevoss twins, will lay off ten

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<v Speaker 1>percent of its staff. It's the third round of job

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<v Speaker 1>cuts for the cryptocurrency exchange dating back to June. Gemini

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<v Speaker 1>Trust has been unable to pay out funds to some

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<v Speaker 1>of its account holders due to the bankruptcy of Genesis

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<v Speaker 1>Global Capital, who is set to oh around nine million

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<v Speaker 1>dollars to clients. Meantime, the auto industry also seeing job losses.

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<v Speaker 1>Ford Motor Company will be laying off workers across Europe,

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<v Speaker 1>mostly in Germany. It wants to cut cost to pour

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<v Speaker 1>more money it's electric vehicle production. Ford CEO Jim Farley

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<v Speaker 1>has pledged more than fifty billion dollars toward the development

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<v Speaker 1>of evs on Dan Schwartzman, Bloomberg Daybreak. All right, Dan,

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<v Speaker 1>thank you. Now, let's turned to Silicon Valley and the

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<v Speaker 1>trial of Elon Musk. The Tesla CEO is on the

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<v Speaker 1>witness stand for a second day in his securities fraud case,

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<v Speaker 1>defending tweets about taking the company private. Egg Baxter has

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<v Speaker 1>the latest from our Bloomberg nine sixty newsroom in San Francisco.

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<v Speaker 1>The crux of testimony centered around a deal with a

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<v Speaker 1>Saudi public investment fund. He said he'd had a handshake

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<v Speaker 1>agreement in getting help going private, but then they began

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<v Speaker 1>to back pedal on the arrangement after his go private tweet.

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<v Speaker 1>He also said he had support from Larry Ellison as

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<v Speaker 1>well as two other investment firms. Musk also noted the

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<v Speaker 1>wording of the text that he was contemplating taking the

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<v Speaker 1>company private. He's back on the stand today in San Francisco.

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<v Speaker 1>I'm at Baxter Bloomberg Daybreak, Okay, and thanks. I must

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<v Speaker 1>continues to fight that court battle over Tesla. He's facing

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<v Speaker 1>another legal challenge when it comes to Twitter. According to

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<v Speaker 1>a lawsuit there, Musk is accused of not paying grant

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<v Speaker 1>on the company san Francisco headquarters since December. The owner

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<v Speaker 1>of the building says the social media company failed to

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<v Speaker 1>pay almost seven million dollars in rent over the last

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<v Speaker 1>two months. Well, Musk is caught up in legal battles, Nathan,

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<v Speaker 1>he has seen his wealth increase thanks to a mini

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<v Speaker 1>rally and Testlas shares. According to the Bloomberg Billionaires Index,

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<v Speaker 1>Musk's fortune has swelled by more than ten billion dollars

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<v Speaker 1>since Friday to reach a total of roughly one forty

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<v Speaker 1>five billions since Friday. Musk last month became the first

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<v Speaker 1>person ever to see two hundred billion dollars erased from

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<v Speaker 1>their net worth in his thirty six degrees in Central Park.

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<v Speaker 1>Cloudy skies will give way to sunshine today in a

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<v Speaker 1>high near forty five. Those clouds are gonna roll back

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<v Speaker 1>in tonight, though, ahead of a wintry mess tomorrow. Time

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<v Speaker 1>now to take a look at some of the other

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<v Speaker 1>stories making news in New York and around the world

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<v Speaker 1>with Bloomberg's Michael bar Good morning, Michael, Good morning Nathan.

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<v Speaker 1>Another mass shooting in California. Seven people were killed and

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<v Speaker 1>another severely injured in shootings that took place at two

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<v Speaker 1>separate locations in Half Moon Bay in northern California. Another

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<v Speaker 1>person was wounded and taken to a hospital in critical condition.

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<v Speaker 1>The other three bodies were discovered at a separate nursery

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<v Speaker 1>with gunshot wounds. San Mateo County Sheriff of Christina Corpus

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<v Speaker 1>calls it a horrific shooting. The motive through the shooting

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<v Speaker 1>is currently unknown through investigation. The suspect identified as Chun Lizel,

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<v Speaker 1>a sixty seven year old Half Room Bay resident. The

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<v Speaker 1>shootings occurred two days after a gunmen killed eleven people

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<v Speaker 1>at a dance club. The shootings in California led to

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<v Speaker 1>a march in New York City. It went from Union

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<v Speaker 1>Square to Chinatown to fight gun violence in the US.

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<v Speaker 1>This person was at the event. Every time something like

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<v Speaker 1>this happens, if we say, oh my god, never again,

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<v Speaker 1>but when are we really going to finally say this

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<v Speaker 1>is enough? Another marcher says gun violence is a public

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<v Speaker 1>health crisis. Attorney General Merrit Garland dismissed criticism that the

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<v Speaker 1>Justice Department is treating Donald Trump and Joe Biden differently

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<v Speaker 1>when it comes to investigating their handling of classified documents.

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<v Speaker 1>We do not have different rules for Denmark rats or Republicans,

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<v Speaker 1>different rules for the powerful and the powerless, different rules

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<v Speaker 1>for the rich for for the poor. We apply the

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<v Speaker 1>facts and the law in each case in a neutral,

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<v Speaker 1>nonpartisan manner. Uh. That is what we always do. A g.

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<v Speaker 1>Garland made the comments during a meeting of the Reproductive

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<v Speaker 1>Rights Task Force at the Justice Department. A new poll

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<v Speaker 1>shows a majority of New Yorkers want Long Island GOP

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<v Speaker 1>representative George Santos to resign. According to a Siena College

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<v Speaker 1>Research Institute pole, nearly six out of ten New York

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<v Speaker 1>voters said Santos should step down. At about half of

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<v Speaker 1>Republicans say he should leave office. Santos admitted to lying

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<v Speaker 1>about working at Goldman Sachs and other parts of his

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<v Speaker 1>resume while campaigning. The Oscar nominations will be announced this morning.

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<v Speaker 1>Some of the favorite movies include Top Gun, Maverick Avatar,

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<v Speaker 1>The Way of Water, Black Panther, Wakonda Forever, and Elvis

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<v Speaker 1>Global News twenty four hours a day on air and

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<v Speaker 1>on Bloomberg Quicktake, powered by more than seven hundred journalists

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<v Speaker 1>analysts more than countries Michael Barr, and this is Bloomberg.

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<v Speaker 1>Night's actually seen a couple of those. How about that?

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<v Speaker 1>Thank you, Michael, except for the Bloomberg Sports Update now

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<v Speaker 1>brought tier by tri State out Here. Good morning, John Stanshower,

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<v Speaker 1>Good morning anything. Despite the shell lackein they took Saturday

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<v Speaker 1>night in Philadelphia, the Giant season was arousing success. Passons

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<v Speaker 1>two thousand and eleven and Napogins. What will be an

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<v Speaker 1>interesting off season? Daniel Jones and Sa Kwan Barkley can

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<v Speaker 1>both be unrestricted free agents. John's gentlemenator Joe Shane was

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<v Speaker 1>asked about Barkley. We want to build this team and

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<v Speaker 1>allocade our resources and that's that's what it comes down

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<v Speaker 1>to you. So again, he's he's a good football player. Um,

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<v Speaker 1>he was durable for this suit this year. He played well,

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<v Speaker 1>and you know, again he's he's a guy that we

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<v Speaker 1>might have back. Shane was more definitive about the chances

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<v Speaker 1>of Jones Attorney. Giants have learned they'll have the twenty

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<v Speaker 1>fifth pick of the draft. The Jets all pick thirteen.

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<v Speaker 1>Chiefs coach Andy Reid says he expects Patrick Mahomes to

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<v Speaker 1>play in Sunday's ANFC championship game but Sincinnat despite a

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<v Speaker 1>high ankle sprain, it did not prevent the Homes from

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<v Speaker 1>playing second half Last Saturday at the Garden Rangers Bead

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<v Speaker 1>Florida six to two, para goals for Mekas Abantage had

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<v Speaker 1>three assists for Timmy Panerain. Islanders lost in Toronto five

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<v Speaker 1>to two. In the Isles have now lost five in

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<v Speaker 1>a row nine of the last ten. Next tonight try

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<v Speaker 1>to end a four game losing streak. They host Cleveland

0:10:18.280 --> 0:10:21.640
<v Speaker 1>College Hoops. Kansas defending national champs was sixteen and one

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<v Speaker 1>lost at Baylor. Jayhawks have lost their last three. Duke

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<v Speaker 1>is just five and four in the a c C

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<v Speaker 1>after a loss in Virginia Tech a couple of Russians

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<v Speaker 1>and in the semifinals of the Australian Open, krinkatching off

0:10:31.920 --> 0:10:35.360
<v Speaker 1>took out the American Sebastian Quarter Atlanta Rabkina coming off

0:10:35.400 --> 0:10:38.040
<v Speaker 1>an upset of top seed Eka Schwech one again third

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<v Speaker 1>seed in Jessica Pagoula has just lost her quarterfinal match

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<v Speaker 1>with Victoria Azarenka six four or six one. We'll find

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<v Speaker 1>out today who if anyone gets into the Baseball Hall

0:10:46.840 --> 0:10:48.480
<v Speaker 1>of Fame. The philling is it could be a shutout,

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<v Speaker 1>but if anyone has a chance, it might be Scott Rowland,

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<v Speaker 1>John Stash and went Bloomberg Sports Live from coast to coast,

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<v Speaker 1>from New York to San Francisco, Boston to Washington, d C.

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<v Speaker 1>Nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg

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<v Speaker 1>dot Com. This is Bloomberg Daybreak. Good morning up, Nathan Hagar.

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<v Speaker 1>We're following a couple of significant developments when it comes

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<v Speaker 1>to the war in Ukraine. Sources are telling Bloomberg News

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<v Speaker 1>that the Biden administrations confronting China with evidence that state

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<v Speaker 1>owned businesses maybe providing assistance to the Russian war effort.

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<v Speaker 1>And now we have confirmation from Poland that it is

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<v Speaker 1>asking the German government to allow it to send Leopard

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<v Speaker 1>two tanks into Ukraine to support their war effort. From

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<v Speaker 1>more on. All these stories were joined live by Bloomberg

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<v Speaker 1>News Executive editor for International Government, Rosalind Mathison. Ros Good morning,

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<v Speaker 1>thanks for being with us. I want to start with

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<v Speaker 1>this a US China situation. What is the evidence that

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<v Speaker 1>the US is talking about? What kind of assistance could

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<v Speaker 1>a state owned enterprises be providing Russia. Well, there wasn't

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<v Speaker 1>a lot of detail about that, but what we know

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<v Speaker 1>is that there is a rising level of concern in

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<v Speaker 1>the US administration about just how much economic activity is

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<v Speaker 1>going on between China and Russia and how much that

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<v Speaker 1>might be becoming deliberate in order to support of the

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<v Speaker 1>Russian economy to facilitate its war in Ukraine. It seems

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<v Speaker 1>to be focused around several things. One is just the

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<v Speaker 1>activities of state owned enterprises doing business in China. The

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<v Speaker 1>other is perhaps the provision of non lethal military assistance,

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<v Speaker 1>which is sort of spare parts, goggles, that kind of

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<v Speaker 1>thing that might be just, you know, what Russia actually

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<v Speaker 1>needs right now, given its struggles in Ukraine, and certainly

0:12:30.720 --> 0:12:34.080
<v Speaker 1>a trajectory that the US administration is seeing where some

0:12:34.160 --> 0:12:36.480
<v Speaker 1>of that activity is picking up. Of course, it's not

0:12:36.960 --> 0:12:40.120
<v Speaker 1>in violation of sanctions that are placed on Russia for now.

0:12:40.800 --> 0:12:43.120
<v Speaker 1>Chinese companies have been pretty careful to stay in their

0:12:43.160 --> 0:12:45.880
<v Speaker 1>lane on that, even though China never signed up to

0:12:45.920 --> 0:12:48.679
<v Speaker 1>these sanctions to begin with. But what they're seeing as

0:12:48.679 --> 0:12:50.640
<v Speaker 1>signs that some of that activity is on the rise,

0:12:50.679 --> 0:12:53.280
<v Speaker 1>and therefore the warnings are coming to Beijing to watch it.

0:12:53.679 --> 0:12:58.240
<v Speaker 1>What's the possibility rise that the Chinese government wouldn't potentially

0:12:58.280 --> 0:13:00.720
<v Speaker 1>know about this kind of activity coming from its own

0:13:00.800 --> 0:13:04.400
<v Speaker 1>Steino on enterprises, It's possible it is also through the

0:13:04.440 --> 0:13:06.360
<v Speaker 1>private sector, and you've just got sort of the natural

0:13:06.440 --> 0:13:09.280
<v Speaker 1>order of business. I mean, China is not just the

0:13:09.280 --> 0:13:12.960
<v Speaker 1>only country who's really seeing business somewhat as usual with

0:13:13.040 --> 0:13:16.400
<v Speaker 1>Russia despite its actions in Ukraine. India, countries in the

0:13:16.400 --> 0:13:19.679
<v Speaker 1>Middle East, Africa and so on similarly have been continuing

0:13:19.679 --> 0:13:24.280
<v Speaker 1>to trade and invest with Russia with certain enterprises, generally,

0:13:24.559 --> 0:13:26.720
<v Speaker 1>they tend not to act without at least a sense

0:13:26.720 --> 0:13:29.200
<v Speaker 1>of the mood in Beijing. It might not be an

0:13:29.240 --> 0:13:32.600
<v Speaker 1>avert instruction from Beijing, but at least sort of knowing

0:13:32.600 --> 0:13:35.360
<v Speaker 1>where the wind is with the leadership there in terms

0:13:35.360 --> 0:13:37.760
<v Speaker 1>of things like their view on Russia and its actions

0:13:38.240 --> 0:13:41.880
<v Speaker 1>in Ukraine. So they wouldn't be acting really without sort

0:13:41.880 --> 0:13:43.560
<v Speaker 1>of a sense of that, even if it's not an

0:13:43.600 --> 0:13:46.800
<v Speaker 1>overt instruction. Um So you can read from that that

0:13:46.960 --> 0:13:49.760
<v Speaker 1>probably there is a sense of other mood shift in

0:13:49.800 --> 0:13:53.040
<v Speaker 1>Beijing in the leadership about Russia on this and what's

0:13:53.080 --> 0:13:57.640
<v Speaker 1>the potential of the mood shift affecting US China relations.

0:13:57.679 --> 0:13:59.760
<v Speaker 1>We've had over the last couple of months at least

0:13:59.760 --> 0:14:03.319
<v Speaker 1>an effort to try to stabilize, if not further improve

0:14:03.559 --> 0:14:07.080
<v Speaker 1>Chinese relations after that meeting between the presidents of the

0:14:07.200 --> 0:14:09.960
<v Speaker 1>U S and China. Well, certainly that is the balancing

0:14:10.160 --> 0:14:12.360
<v Speaker 1>that we're seeing going on. As you've noted, there's been

0:14:12.400 --> 0:14:14.840
<v Speaker 1>sort of a shift between China and the US at

0:14:14.880 --> 0:14:17.160
<v Speaker 1>least an effort to put that relationship on a more

0:14:17.240 --> 0:14:20.560
<v Speaker 1>even keel. And we're expecting the Secretary of State Anthony

0:14:20.600 --> 0:14:23.880
<v Speaker 1>Lincoln to visit China before too long, and that would

0:14:23.880 --> 0:14:26.280
<v Speaker 1>be sort of putting that on that further trajectory. So

0:14:26.280 --> 0:14:28.720
<v Speaker 1>there will be probably an anxiety at least in Washington

0:14:28.800 --> 0:14:31.840
<v Speaker 1>to make sure that these issues remain somewhat separate. Yeah,

0:14:31.840 --> 0:14:35.280
<v Speaker 1>you continue to press China over Russia, over Ukraine, but

0:14:35.360 --> 0:14:37.920
<v Speaker 1>equally you're trying to put sort of trade and investment

0:14:38.000 --> 0:14:41.480
<v Speaker 1>and other other issues, including the need to tackle climate

0:14:41.520 --> 0:14:44.800
<v Speaker 1>change collectively, for example, on a different track between the

0:14:44.880 --> 0:14:47.600
<v Speaker 1>US and China relationship. So you'd imagine that there's a

0:14:47.640 --> 0:14:49.560
<v Speaker 1>strong design not to have it in fect that broader

0:14:49.600 --> 0:14:52.680
<v Speaker 1>trajectory too much. And I want to turn rise finally

0:14:52.680 --> 0:14:55.680
<v Speaker 1>to this new development that just crossed the Bloomberg terminal

0:14:55.760 --> 0:14:59.120
<v Speaker 1>moment ago, that Poland is now formally asking Germany for

0:14:59.160 --> 0:15:01.480
<v Speaker 1>permission to send in Leopard two tanks. I guess this

0:15:01.520 --> 0:15:03.800
<v Speaker 1>isn't too big a surprise here, but this does seem

0:15:03.840 --> 0:15:08.080
<v Speaker 1>to have become something of a fracture in the Needle alliance.

0:15:08.240 --> 0:15:10.280
<v Speaker 1>What more can you tell us about that? Well, that's

0:15:10.360 --> 0:15:12.520
<v Speaker 1>right to some sense. It's a it's a formality because

0:15:12.560 --> 0:15:14.960
<v Speaker 1>Poland has been asking for weeks and weeks or weeks

0:15:14.960 --> 0:15:18.120
<v Speaker 1>for Germany to agree to this. Almost a daily commentary

0:15:18.160 --> 0:15:21.400
<v Speaker 1>from someone in Poland saying Germany needs to now allow this.

0:15:21.520 --> 0:15:23.960
<v Speaker 1>So it's just putting more pressure on on Berlin to

0:15:23.960 --> 0:15:26.840
<v Speaker 1>to agree that other countries can send in their own

0:15:26.840 --> 0:15:30.200
<v Speaker 1>German made heavy tanks, the Leopard tanks in particular. We

0:15:30.280 --> 0:15:32.560
<v Speaker 1>are expecting that Germany will will sort of get over

0:15:32.560 --> 0:15:34.560
<v Speaker 1>the line on this at some point, whether it's days

0:15:35.000 --> 0:15:38.320
<v Speaker 1>or potentially still weeks, but the pressure is intense, and

0:15:38.400 --> 0:15:41.520
<v Speaker 1>really even Germany is agreeing that Ukraine needs more heavy

0:15:41.560 --> 0:15:44.280
<v Speaker 1>weapons if it's going to be able to push back

0:15:44.320 --> 0:15:47.160
<v Speaker 1>against a possible Russian offensive that may come in the

0:15:47.200 --> 0:15:49.480
<v Speaker 1>next couple of weeks or a couple of months. But

0:15:49.560 --> 0:15:52.120
<v Speaker 1>it's really just sort of keeping that public pressure from

0:15:52.160 --> 0:15:55.400
<v Speaker 1>Poland on Germany to agree just thirty seconds left her rise.

0:15:55.440 --> 0:15:58.400
<v Speaker 1>But what's been holding Germany back up to this point, well,

0:15:58.400 --> 0:16:00.920
<v Speaker 1>a bunch of things. One is obviously concern and Germany

0:16:01.000 --> 0:16:03.840
<v Speaker 1>is not the only one saying this, is that the warriors,

0:16:04.200 --> 0:16:06.560
<v Speaker 1>the more heavy kit you sent into Ukraine, the more

0:16:06.600 --> 0:16:09.880
<v Speaker 1>at some point you possibly provoked Russia into a reaction.

0:16:09.960 --> 0:16:13.040
<v Speaker 1>Although Vladimir Putin has threatened that before and not followed through.

0:16:13.280 --> 0:16:15.680
<v Speaker 1>So that's really a fundamental concern. And also Germany is

0:16:15.720 --> 0:16:19.240
<v Speaker 1>just very cautious about its weaponry going into other hands.

0:16:19.280 --> 0:16:21.840
<v Speaker 1>That's been its position since the end of World War

0:16:21.880 --> 0:16:24.200
<v Speaker 1>Two and something that it still holds very closely. So

0:16:24.200 --> 0:16:26.280
<v Speaker 1>those are probably the two main drivers in that regard.

0:16:27.600 --> 0:16:30.680
<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

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