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

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Speaker 2: This is the Bloomberg daybreakur podcast, available every morning on Apple,

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Speaker 2: Spotify or wherever you listen. It's Tuesday, the twenty seventh

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Speaker 2: of May. Here in London. I'm Caroline Hepka coming up today.

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Speaker 2: A horrific incident, the words of Prime Minister Kiss Starmer,

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Speaker 2: after a car drives into crowds at Liverpool's Premier League

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Speaker 2: trophy parade. The US and EU agree to fast track

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Speaker 2: trade negotiations as President Trump pauses fifty percent tariffs on

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Speaker 2: the block. And seventeen years after the bailout, nat West

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Speaker 2: is preparing for life after government ownership with an Ion

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Speaker 2: acquisitions and wealth management. Let's start with a roundup of

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Speaker 2: our top stories. Twenty Seven people, including four children, have

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Speaker 2: been injured after a car drove into crowds of people

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Speaker 2: during Liverpool's Premier League victory parade. A fifty three year

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Speaker 2: old British man has been arrested. Merseyside Police Assistant Chief

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Speaker 2: Constable Jenny Simms says that they are not looking for

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Speaker 2: anyone else.

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Speaker 3: I know that people will understandably be concerned by what

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Speaker 3: has happened tonight. What I can tell you is that

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Speaker 3: we believe this to be an isolated incident. The incident

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Speaker 3: is not being treated as terrorism.

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Speaker 2: Merseyside Police, speaking there as the local FI service reported

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Speaker 2: that four people, including a child, were lifted from beneath

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Speaker 2: the car. In a statement, Prime Minister Keir Starmer said

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Speaker 2: Liverpool stands together and the whole country stands with Liverpool.

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Speaker 2: Liverpool Football Club says its thoughts and prayers are with

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Speaker 2: those injured.

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Speaker 4: So that our top story this morning.

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Speaker 2: Now, let's think about the European Union, which says that

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Speaker 2: it has agreed to accelerate negotiations with the US to

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Speaker 2: avoid a transatlantic trade war. The move to fast track

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Speaker 2: trade tours comes after a phone call between the EU

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Speaker 2: Commissioned President Slavonteline and the US President Donald Trump. Following

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Speaker 2: the call, President Trump also extended the deadline to impose

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Speaker 2: fifty percent tariffs on the EU to the ninth of

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Speaker 2: July to allow more time for negotiations. While the EU

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Speaker 2: has said that its priority is to find a negotiated

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Speaker 2: solution with the US, it has also been preparing to

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Speaker 2: retaliate with its own levees if needed. European Central Bank

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Speaker 2: President Christine Leaguard says that the White House's erratic policies

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Speaker 2: are an opportunity for the Euro. In a speech, the

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Speaker 2: Guard suggested that America could be undermining the dollar's role

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Speaker 2: as the world's reserve currency. She says that this could

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Speaker 2: be the moment the Euro goes global.

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Speaker 5: Moments of change can also be moments of opportunity. The

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Speaker 5: ongoing changes create the opening for a global euro moment,

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Speaker 5: and this is a prime opportunity for Europe to take

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Speaker 5: greater control of its own destiny. But let's not follow ourselves.

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Speaker 5: It is not the privilege that will be bestowed upon us.

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Speaker 2: The ECB president called for a closer single market and

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Speaker 2: more joint EU financing to make the block more financially attractive. Currently,

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Speaker 2: the dollar makes up roughly sixty percent of sovereign currency

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Speaker 2: reserves around the world, compared to the euro at twenty percent.

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Speaker 2: Dutch pension fund PME is issuing a blanket warning to

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Speaker 2: the US financial sector about caving in to pressure from

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Speaker 2: the Trump administration to abandon basic principles. The fund, with

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Speaker 2: sixty five billion dollars worth of assets under management, says

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Speaker 2: that if firms stay silent on Trump's policies, they could

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Speaker 2: lose the right to manage its money. Bloomberg's James Orcock

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Speaker 2: has the story.

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Speaker 6: PME says there is a fundamental divide between European values

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Speaker 6: and the Trump administration. The Dutch Fund is considering changing

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Speaker 6: its ESG metrics to exclude money managers who don't stand

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Speaker 6: up for environment and diversity goals. Put their five billion

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Speaker 6: dollar mandate with black Rock under a view after the

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Speaker 6: asset manager quit a net zero coalition. More worryingly for Americans,

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Speaker 6: PME and not alone state streets have already lost mandates

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Speaker 6: in Scandinavia and the UK, and ali Anders, warning the

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Speaker 6: US may no longer offer a reliable investment runway In London.

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Speaker 7: James Wilcock Bloomberg Radio.

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Speaker 2: NATO Secretary General says that member states are moving towards

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Speaker 2: spending five percent of their GDP on defense. Speaking doing

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Speaker 2: a televised question and answer session, Mark Rutter confirmed the target,

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Speaker 2: which meets a demand by US President Donald Trump that

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Speaker 2: was originally deemed unrealistic.

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Speaker 8: I assume that indyak we will agree on a higher

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Speaker 8: defense spend target of in total five percent. Sorry I

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Speaker 8: would not mention that, but at least I did it now.

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Speaker 8: But let's say that it's five percent, but I will

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Speaker 8: not say what is the NFL or breakup, but it

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Speaker 8: will be considerably norse for three percent when it comes

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Speaker 8: to the heart spent, and it will be also a

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Speaker 8: target on defensely later spending. We need this because all

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Speaker 8: of us we can never ever ever reach the capability

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Speaker 8: targets we have to.

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Speaker 2: Reach NATO sexually. General Marco Rutter's comments his first public

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Speaker 2: endorsement of the figure as a target for the Defense Alliance.

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Speaker 2: It comes as German Chancellor Fredrik Mertz said that Ukraine

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Speaker 2: has been given permission to use weapons from its allies

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Speaker 2: to launch strikes inside Russia with no range limits. Now

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Speaker 2: to the UK, there are plans to train one hundred

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Speaker 2: and twenty thousand British builders, engineers and care workers as

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Speaker 2: the country tries to curb migration without worsening the skills shortage.

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Speaker 2: The government plans to use three billion pounds plus higher

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Speaker 2: taxes on foreign workers to fund new apprenticeships in key sectors.

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Speaker 2: The drive highlights a problem for Labor, who wants to

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Speaker 2: oversee both of boom in building whilst also cutting down

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Speaker 2: on migration, so a central issue for the ruling Labor party.

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Speaker 2: And lastly, to King Charles. He has arrived in Canada

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Speaker 2: on his first visit to the country as it's head

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Speaker 2: of state. He's in Ottawa to open a new parliament.

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Speaker 2: At the invitation of Prime Minister Mark Carney. He will

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Speaker 2: read the Throne Speech setting out his government's agenda in Canada.

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Speaker 2: Bloomberg reports it's partly a move designed to send US

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Speaker 2: President Donald Trump a message about Canada's sovereignty after he

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Speaker 2: said that he wants it to become America's fifty first state.

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Speaker 2: Prime Minister Mark Carney says that that won't happen and

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Speaker 2: he is pleased to welcome the King to Canada. I

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Speaker 2: asked the King when I visited the United Kingdom in March,

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Speaker 2: within days of my becoming Prime Minister the first time.

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Speaker 2: His Majesty was very receptive and we're honored by his visitors.

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Speaker 2: Prime Minister Mark Carney speaking there as the Monarch prepares

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Speaker 2: to read the speech to Parliament for the first time.

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Speaker 2: Sin's nineteen seventy seven, an honor that is normally reserved

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Speaker 2: for the Governor General in Canada. So those are a

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Speaker 2: few of our top stories for you this morning. Let's

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Speaker 2: have a look at the markets. So European stocks jumped

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Speaker 2: yesterday because of the delay in US tariffs. They were

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Speaker 2: up one percent of the close Automotive and industrial goods

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Speaker 2: were amongst the leading gains. Futures, though, for European stocks

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Speaker 2: are down almost two tenths of one percent this hour.

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Speaker 2: S and P five hundred EMNI futures are soaring up

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Speaker 2: by nine tenths of one percent. The green back this

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Speaker 2: morning down for a third day on the Bloomberg Dollar

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Speaker 2: Spot Index, and we're down something like more than seven

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Speaker 2: percent for the dollar this year, So that's a major

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Speaker 2: topic we'll be thinking about today. Tenny US treasury yields

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Speaker 2: dropping three basis points at four to forty eight, Japan's

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Speaker 2: long end yields declining sharply after hitting a record last week.

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Speaker 2: There's an important debt auction on Wednesday for forty year

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Speaker 2: notes that's going to be closely watched. And then don't

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Speaker 2: forget today the start of a big run of US

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Speaker 2: data out, including US durable goods and consumer confidence data.

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Speaker 4: Today.

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Speaker 2: Right, those are the markets, and now in a moment,

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Speaker 2: we are going to be a big you. More details

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Speaker 2: on the jubilation that turned into devastation in Liverpool over

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Speaker 2: the weekend, and also this warning to US asset managers

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Speaker 2: about what it means if they follow Trump administration policies

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Speaker 2: perhaps too closely, ones which clash maybe with European values.

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Speaker 2: So we'll get into that in just a moment. But

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Speaker 2: there was another story that cornhile. I don't know whether

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Speaker 2: you've managed to see it yet. This is Tom Cruise

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Speaker 2: and of course his Mission Impossible movie that was a

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Speaker 2: huge hit over the weekend. There's a great piece by

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Speaker 2: Tony Cabatchio over the weekend. Tom Cruise really did get

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Speaker 2: a US aircraft carrier for the mission. Yeah, it's completely bonkers.

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Speaker 2: The US Navy and Air Force Special Operations they decided

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Speaker 2: to accept the mission and to help Cruise's secret agent

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Speaker 2: Ethan Huh and save the world, or at least to

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Speaker 2: make a bit of the movie about it. This is

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Speaker 2: the story on the blue Egg Turtle that has kind

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Speaker 2: of fascinated all of us the Final Reckoning. Of course,

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Speaker 2: Paramount reported a blowout budget for this movie four hundred

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Speaker 2: million dollars. Got a break though, because the carrier and

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Speaker 2: crew were already on schedule training missions, so they managed

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Speaker 2: to sort of get that assistance. Most if not all,

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Speaker 2: of the aircraft time was logged as official training requirements

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Speaker 2: and therefore not reimbursable, according to the Pentagon. Sadly, I've

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Speaker 2: not seen this movie yet, but I bet a lot

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Speaker 2: of you already have. It had a massive weekend, didn't it.

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Speaker 2: So one of the stories that I've been reading about

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Speaker 2: this morning, and the helping hand for one of America's

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Speaker 2: biggest stars. Now, let's turn back to our top story

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Speaker 2: this morning, a car plowed into crowds of Liverpool fans

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Speaker 2: who were celebrating their team winning the Premier League, leaving

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Speaker 2: almost fifty people injured. Join me now bergs a Tia

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Speaker 2: at a bio. Good morning, Tia. This was really awful,

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Speaker 2: wasn't it. It was such a celebratory weekend, a bank

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Speaker 2: holiday weekend, and the open top buses and crowds were

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Speaker 2: out to celebrate this victory, and then it just turned

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Speaker 2: into devastation.

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Speaker 4: What do we know about what happened?

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Speaker 9: Yeah, Caroline, as you say, it was supposed to be

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Speaker 9: a day's celebration for the club and also for the city.

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Speaker 9: Hundreds of thousands of people had come out to celebrate the.

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Speaker 4: Team's Premier League victory.

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Speaker 9: It was a victory which had made them arguably the

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Speaker 9: most successful club in England, so there was this real

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Speaker 9: sense of jubilation, but that quickly did turn to terror

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Speaker 9: after the incident that happened on Water Street, which is

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Speaker 9: in Liverpool's city center, just after six pm on parade day.

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Speaker 9: Just moments before the incident occurred on Water Street, the

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Speaker 9: Liverpool FC bus and team had actually just paraded their

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Speaker 9: Premier League trophy from the top of an open top

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Speaker 9: bus as you meant, and just to give you a

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Speaker 9: bit of context, Water Street is just about a mile

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Speaker 9: before the end of the parade's designated route, so according

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Speaker 9: to Merseyside Police, a car collided with a number of

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Speaker 9: pedestrians who were celebrating the victory. The Ambulance Service says

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Speaker 9: that twenty seven people were taken to hospital in the aftermath,

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Speaker 9: with two including one child, seriously injured, and a further

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Speaker 9: twenty people were treated for injuries at the scene and

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Speaker 9: four people including a child, were lifted from beneath the car.

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Speaker 9: That's according to Merseyside's Fire chief. So really tragic scenes

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Speaker 9: happening on what was supposed to be a day of

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Speaker 9: celebration for the city of Liverpool.

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Speaker 2: Yeah, absolutely, it had been a day of celebration and

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Speaker 2: that the incident took place around six o'clock in the

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Speaker 2: evening and arrest made.

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Speaker 4: What have police said so?

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Speaker 9: The Merseyside Police held a press conference yesterday evening and

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Speaker 9: they also released a statement telling us that a fifty

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Speaker 9: three year old white British Man has been arrested and

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Speaker 9: the police do believe him to be the driver of

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Speaker 9: the vehicle. There are also inquiries into the exact circumstances

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Speaker 9: leading up to the collision that are underway and specialist

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Speaker 9: officers have been put in place to support the injured

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Speaker 9: and their families. The police did also clarify that the

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Speaker 9: incident is not currently being treated as terrorism and that's

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Speaker 9: all we have from the police at this time is

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Speaker 9: they continue their investigations.

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Speaker 2: But the response on the club from the Premier League,

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Speaker 2: from the Prime Minister, a lot of people have made

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Speaker 2: some comments already.

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Speaker 7: Yeah, we have.

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Speaker 9: Heard responses from a number of people so far. We've

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Speaker 9: heard from both the Prime Minister and the leader of

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Speaker 9: the opposition. So Kis Starma shared his thanks to the

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Speaker 9: police and the emergency services on x and he said

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Speaker 9: his thoughts were with those affected and similarly, the Conservative

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Speaker 9: leader Kemmy Beisenok also shared a similar sentiment on the platform.

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Speaker 9: Liverpool Football Club is understood to have boned the celebrations

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Speaker 9: for its own staff due to the incident. We often

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Speaker 9: forget this is not just the end of a successful

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Speaker 9: season for Liverpool, but it's the end of a football

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Speaker 9: season and all clubs really do tend to celebrate that

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Speaker 9: point in times, the end of a lot of hard

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Speaker 9: work for the staff. But those celebrations on hold for

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Speaker 9: the moment. They have confirmed that they're in touch with

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Speaker 9: the police as investigations continue.

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Speaker 4: They said they.

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Speaker 9: Will offer their full support and cooperation. They've also shared

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Speaker 9: thoughts for the victims in a statement, and also their

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Speaker 9: rivals Everton FC, who neighbor the club, have expressed their support.

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Speaker 9: They're putting on a united front in the face of

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Speaker 9: this incident.

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Speaker 4: Ok Ti, but thank you so much for being with me.

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Speaker 2: Yeah, we are really hoping for the swift recovery of

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Speaker 2: anybody hurt in that incident. Bluebag's h at at Abio,

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Speaker 2: thank you for your reporting. Now a US asset managers

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Speaker 2: are coming under increasing scrutiny and losing mandates with European

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Speaker 2: pension funds. Amid concerns that America's investment industry is caving

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Speaker 2: into pressure from the Trump administration on basic principles, including

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Speaker 2: climate change and on diversity, equity and inclusion. Joining me

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Speaker 2: now as Bloomberg Senior Editor for US Economics and Government,

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Speaker 2: Derek Wallbank, Derek, good morning. So there is this Dutch

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Speaker 2: pension fund huge assets under management PME, which has issued

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Speaker 2: a warning to US money managers. What are they saying exactly.

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Speaker 7: Well, thank you so much and good morning. Look.

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Speaker 10: PME is basically saying, quite simply that US funds are

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Speaker 10: not condemning what Trump is doing, how he's operating, how

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Speaker 10: he's handling issues including climate change, the judiciary, diversity inclusion,

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Speaker 10: other things of that nature. It's really a continuation of

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Speaker 10: a split that we're seeing between Europe and the United

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Speaker 10: States and a number of different areas.

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Speaker 7: Now.

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Speaker 10: European funds have the ability to choose who they want

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Speaker 10: to manage things, you know, and to be involved in.

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Speaker 7: What the are doing.

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Speaker 10: To put real quite simply, they're taking a moment at

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Speaker 10: this point, many of them. PM is by far not

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Speaker 10: alone to say, hang on a second, let's just see

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Speaker 10: sort of where we are, and if you are aligned

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Speaker 10: with what we're looking at doing now. I should say

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Speaker 10: here ESG sort of goes into three buckets.

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Speaker 7: Right.

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Speaker 10: There's offense you're trying to you're trying to gain alpha

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Speaker 10: and a differential in returns.

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Speaker 7: There's also like defense.

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Speaker 10: Of trying to stop having a potential regulatory issue, and

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Speaker 10: we do see some of these issues cropping up in

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Speaker 10: regulation as well. And then there's also values, right, and

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Speaker 10: this is where we're seeing the European funds speaking out.

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Speaker 2: Yeah, on State Street has already lost some European pension

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Speaker 2: money because of this. It looks like US management managers

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Speaker 2: are basically court, aren't they between the Trump administration and

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Speaker 2: their goals and the Republican Party maybe more Republican leaning

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Speaker 2: state And then Europe and European standards.

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Speaker 10: Yeah, well, and I mentioned the defense and regulation for

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Speaker 10: precisely this point, right, because Europe in a lot of ways,

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Speaker 10: and certainly I'm sitting in Singapore right now, and European

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Speaker 10: regulations are really a global standard. A lot of firms

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Speaker 10: have to use the European standards because they tend to

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Speaker 10: be the toughest. So if you work to the European standard,

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Speaker 10: you're sort of good throughout the way. The thing is

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Speaker 10: though in the United States there has been a backlash

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Speaker 10: too that certainly with some states. Texas is the big

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Speaker 10: one that have said, and hang on a second, we

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Speaker 10: don't like the way that you're doing this. We want

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Speaker 10: it done a different way, and often in polar opposition.

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Speaker 10: So it is sort of taking these firms, many of

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Speaker 10: which candidly would prefer to focus.

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Speaker 7: On making money, and putting.

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Speaker 10: Them a bit between a rock and a hard place

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Speaker 10: regulatory wise, between Europe and some of these conservative areas.

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Speaker 4: Yeah.

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Speaker 2: Absolutely, and pme that Dutch pension fund manager says that

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Speaker 2: it's reviewing and is going to make a decision sort

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Speaker 2: of shortly and maybe in the next few weeks. Derek,

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Speaker 2: thank you so much for being with me. We'll be

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Speaker 2: continuing to track this story, of course, as you say globally. Bloomberg,

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Speaker 2: Senior editor for US Economics and Government, Derek Wallbank. Now

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Speaker 2: Here in the UK, the government's expected to confirm that

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Speaker 2: it has fully divested its holdings in Nowwest, meaning that

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Speaker 2: the bank will chart its own course nearly twenty years

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Speaker 2: since it was bailed out in the two thousand and

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Speaker 2: eight financial crisis. Plyempic's finance reporter will Shaw has been

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Speaker 2: reporting on this. The government finally stepping back will it

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Speaker 2: has been a pretty long road though, hasn't it.

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Speaker 7: It has.

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Speaker 11: So this all goes back seventeen years to the financial

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Speaker 11: crisis and the collapse of what was then known as

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Speaker 11: the Royal Bank of Scotland. At the time, the bank

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Speaker 11: had a two point two trillion pound balance sheet and

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Speaker 11: around the world it employed nearly two hundred thousand staff.

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Speaker 11: And the newest that we know today is very different firm.

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Speaker 11: The balance sheet is just seven hundred and eight billion

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Speaker 11: pounds and the headcount is less than a third of

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Speaker 11: what it was at that time, and.

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Speaker 7: The intervening period saw huge restructuring.

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Speaker 11: In the first five years alone, the bank cut more

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Speaker 11: than thirty nine thousand jobs and quit over twenty countries,

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Speaker 11: and it would go on to pivot away for investment banking,

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Speaker 11: which had got it into the scrape it found itself,

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Speaker 11: and to focus on domestic commercial and retail banking instead.

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Speaker 2: The thing is the sale of the government stake in

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Speaker 2: that west has not been without controversy. What has the

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Speaker 2: bailout actually cost UK taxpayers?

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Speaker 11: So basically, after the crisis, Westminster made a series of

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Speaker 11: emergency cash injections that brought the its stake up to

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Speaker 11: a controlling eighty four percent, and that left UK taxpayers

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Speaker 11: shouldering a bill of nearly forty six billion pounds. Now

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Speaker 11: after the final sale, we calculate that the government will

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Speaker 11: be out of pocket by about ten billion pounds.

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Speaker 7: Now if you compare that with Lloyd's Banking Group.

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Speaker 11: By the time and that was bailed out, and by

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Speaker 11: the time it became fully private in twenty seventeen, the

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Speaker 11: Treasury had actually gained eight hundred and ninety four million pounds.

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Speaker 7: So obviously there's a lot more money.

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Speaker 11: A lot of money is being lost on that West.

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Speaker 11: The government would tell you it's not really the right

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Speaker 11: way of looking at it, and that without the rescue,

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Speaker 11: the UK's financial system might have collapsed.

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Speaker 2: Yeah, okay, so then what for what about the future

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Speaker 2: of the bank. Then they've been on a bit of

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Speaker 2: an acquisition spree recently. What's the shape of NatWest, which

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Speaker 2: actually is last year UK focused bank, isn't it?

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Speaker 7: It's very UK focused? Yeah?

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Speaker 11: So last year they acquired the majority of banking assets

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Speaker 11: from the retailer Sainsbury's and they also around the same

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Speaker 11: time they picked up a mortgage portfolio from Metro Bank

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Speaker 11: in a two point five billion pounds deal, and more

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Speaker 11: recently it was reported that they'd shown interest in Sandander's

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Speaker 11: UK Banking tail banking business, though they were ultimately rebuffed

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Speaker 11: on that affront. So they are yet, like you say,

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Speaker 11: they are showing a renewed interest in acquisitions. Paul Thwaite,

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Speaker 11: who's the CEO today, said at the annual general meeting

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Speaker 11: earlier this year that if they have the ability to

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Speaker 11: add scale and add capability, they'll have a look at it.

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Speaker 11: But he was keen to stress, as he always does,

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Speaker 11: that any deals aren't likely to transform thatwere sob all

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Speaker 11: direction and that the firm will remain disciplined, which is

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Speaker 11: essentially it was undisciplined acquisitions that brought it to the

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Speaker 11: verge of disaster back in two thousand and eight.

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