WEBVTT - Liverpool Parade ‘Horror’, EU-US Accelerate Talks, NatWest’s New Era

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Bloomberg daybreakur podcast, available every morning on Apple,

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

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

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<v Speaker 2>A horrific incident, the words of Prime Minister Kiss Starmer,

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<v Speaker 2>after a car drives into crowds at Liverpool's Premier League

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<v Speaker 2>trophy parade. The US and EU agree to fast track

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<v Speaker 2>trade negotiations as President Trump pauses fifty percent tariffs on

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<v Speaker 2>the block. And seventeen years after the bailout, nat West

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<v Speaker 2>is preparing for life after government ownership with an Ion

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<v Speaker 2>acquisitions and wealth management. Let's start with a roundup of

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<v Speaker 2>our top stories. Twenty Seven people, including four children, have

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<v Speaker 2>been injured after a car drove into crowds of people

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<v Speaker 2>during Liverpool's Premier League victory parade. A fifty three year

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<v Speaker 2>old British man has been arrested. Merseyside Police Assistant Chief

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<v Speaker 2>Constable Jenny Simms says that they are not looking for

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<v Speaker 2>anyone else.

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<v Speaker 3>I know that people will understandably be concerned by what

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<v Speaker 3>has happened tonight. What I can tell you is that

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<v Speaker 3>we believe this to be an isolated incident. The incident

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<v Speaker 3>is not being treated as terrorism.

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<v Speaker 2>Merseyside Police, speaking there as the local FI service reported

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<v Speaker 2>that four people, including a child, were lifted from beneath

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<v Speaker 2>the car. In a statement, Prime Minister Keir Starmer said

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<v Speaker 2>Liverpool stands together and the whole country stands with Liverpool.

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<v Speaker 2>Liverpool Football Club says its thoughts and prayers are with

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<v Speaker 2>those injured.

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<v Speaker 4>So that our top story this morning.

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<v Speaker 2>Now, let's think about the European Union, which says that

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<v Speaker 2>it has agreed to accelerate negotiations with the US to

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<v Speaker 2>avoid a transatlantic trade war. The move to fast track

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<v Speaker 2>trade tours comes after a phone call between the EU

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<v Speaker 2>Commissioned President Slavonteline and the US President Donald Trump. Following

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<v Speaker 2>the call, President Trump also extended the deadline to impose

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<v Speaker 2>fifty percent tariffs on the EU to the ninth of

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<v Speaker 2>July to allow more time for negotiations. While the EU

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<v Speaker 2>has said that its priority is to find a negotiated

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<v Speaker 2>solution with the US, it has also been preparing to

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<v Speaker 2>retaliate with its own levees if needed. European Central Bank

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<v Speaker 2>President Christine Leaguard says that the White House's erratic policies

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<v Speaker 2>are an opportunity for the Euro. In a speech, the

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<v Speaker 2>Guard suggested that America could be undermining the dollar's role

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<v Speaker 2>as the world's reserve currency. She says that this could

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<v Speaker 2>be the moment the Euro goes global.

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<v Speaker 5>Moments of change can also be moments of opportunity. The

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<v Speaker 5>ongoing changes create the opening for a global euro moment,

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<v Speaker 5>and this is a prime opportunity for Europe to take

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

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<v Speaker 5>It is not the privilege that will be bestowed upon us.

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<v Speaker 2>The ECB president called for a closer single market and

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<v Speaker 2>more joint EU financing to make the block more financially attractive. Currently,

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<v Speaker 2>the dollar makes up roughly sixty percent of sovereign currency

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<v Speaker 2>reserves around the world, compared to the euro at twenty percent.

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<v Speaker 2>Dutch pension fund PME is issuing a blanket warning to

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<v Speaker 2>the US financial sector about caving in to pressure from

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<v Speaker 2>the Trump administration to abandon basic principles. The fund, with

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<v Speaker 2>sixty five billion dollars worth of assets under management, says

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<v Speaker 2>that if firms stay silent on Trump's policies, they could

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<v Speaker 2>lose the right to manage its money. Bloomberg's James Orcock

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<v Speaker 2>has the story.

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<v Speaker 6>PME says there is a fundamental divide between European values

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<v Speaker 6>and the Trump administration. The Dutch Fund is considering changing

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<v Speaker 6>its ESG metrics to exclude money managers who don't stand

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<v Speaker 6>up for environment and diversity goals. Put their five billion

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<v Speaker 6>dollar mandate with black Rock under a view after the

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<v Speaker 6>asset manager quit a net zero coalition. More worryingly for Americans,

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<v Speaker 6>PME and not alone state streets have already lost mandates

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<v Speaker 6>in Scandinavia and the UK, and ali Anders, warning the

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<v Speaker 6>US may no longer offer a reliable investment runway In London.

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<v Speaker 7>James Wilcock Bloomberg Radio.

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<v Speaker 2>NATO Secretary General says that member states are moving towards

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<v Speaker 2>spending five percent of their GDP on defense. Speaking doing

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<v Speaker 2>a televised question and answer session, Mark Rutter confirmed the target,

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<v Speaker 2>which meets a demand by US President Donald Trump that

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<v Speaker 2>was originally deemed unrealistic.

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<v Speaker 8>I assume that indyak we will agree on a higher

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<v Speaker 8>defense spend target of in total five percent. Sorry I

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<v Speaker 8>would not mention that, but at least I did it now.

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<v Speaker 8>But let's say that it's five percent, but I will

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<v Speaker 8>not say what is the NFL or breakup, but it

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<v Speaker 8>will be considerably norse for three percent when it comes

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<v Speaker 8>to the heart spent, and it will be also a

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<v Speaker 8>target on defensely later spending. We need this because all

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<v Speaker 8>of us we can never ever ever reach the capability

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<v Speaker 8>targets we have to.

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<v Speaker 2>Reach NATO sexually. General Marco Rutter's comments his first public

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<v Speaker 2>endorsement of the figure as a target for the Defense Alliance.

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<v Speaker 2>It comes as German Chancellor Fredrik Mertz said that Ukraine

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<v Speaker 2>has been given permission to use weapons from its allies

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<v Speaker 2>to launch strikes inside Russia with no range limits. Now

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<v Speaker 2>to the UK, there are plans to train one hundred

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<v Speaker 2>and twenty thousand British builders, engineers and care workers as

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<v Speaker 2>the country tries to curb migration without worsening the skills shortage.

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<v Speaker 2>The government plans to use three billion pounds plus higher

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<v Speaker 2>taxes on foreign workers to fund new apprenticeships in key sectors.

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<v Speaker 2>The drive highlights a problem for Labor, who wants to

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<v Speaker 2>oversee both of boom in building whilst also cutting down

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<v Speaker 2>on migration, so a central issue for the ruling Labor party.

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<v Speaker 2>And lastly, to King Charles. He has arrived in Canada

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<v Speaker 2>on his first visit to the country as it's head

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<v Speaker 2>of state. He's in Ottawa to open a new parliament.

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<v Speaker 2>At the invitation of Prime Minister Mark Carney. He will

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

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<v Speaker 2>Bloomberg reports it's partly a move designed to send US

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<v Speaker 2>President Donald Trump a message about Canada's sovereignty after he

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

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<v Speaker 2>Prime Minister Mark Carney says that that won't happen and

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<v Speaker 2>he is pleased to welcome the King to Canada. I

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<v Speaker 2>asked the King when I visited the United Kingdom in March,

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<v Speaker 2>within days of my becoming Prime Minister the first time.

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

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<v Speaker 2>Prime Minister Mark Carney speaking there as the Monarch prepares

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<v Speaker 2>to read the speech to Parliament for the first time.

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<v Speaker 2>Sin's nineteen seventy seven, an honor that is normally reserved

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<v Speaker 2>for the Governor General in Canada. So those are a

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<v Speaker 2>few of our top stories for you this morning. Let's

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<v Speaker 2>have a look at the markets. So European stocks jumped

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<v Speaker 2>yesterday because of the delay in US tariffs. They were

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<v Speaker 2>up one percent of the close Automotive and industrial goods

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<v Speaker 2>were amongst the leading gains. Futures, though, for European stocks

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<v Speaker 2>are down almost two tenths of one percent this hour.

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<v Speaker 2>S and P five hundred EMNI futures are soaring up

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<v Speaker 2>by nine tenths of one percent. The green back this

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<v Speaker 2>morning down for a third day on the Bloomberg Dollar

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<v Speaker 2>Spot Index, and we're down something like more than seven

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<v Speaker 2>percent for the dollar this year, So that's a major

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<v Speaker 2>topic we'll be thinking about today. Tenny US treasury yields

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<v Speaker 2>dropping three basis points at four to forty eight, Japan's

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<v Speaker 2>long end yields declining sharply after hitting a record last week.

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<v Speaker 2>There's an important debt auction on Wednesday for forty year

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

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<v Speaker 2>forget today the start of a big run of US

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<v Speaker 2>data out, including US durable goods and consumer confidence data.

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<v Speaker 4>Today.

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<v Speaker 2>Right, those are the markets, and now in a moment,

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<v Speaker 2>we are going to be a big you. More details

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<v Speaker 2>on the jubilation that turned into devastation in Liverpool over

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<v Speaker 2>the weekend, and also this warning to US asset managers

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<v Speaker 2>about what it means if they follow Trump administration policies

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<v Speaker 2>perhaps too closely, ones which clash maybe with European values.

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<v Speaker 2>So we'll get into that in just a moment. But

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<v Speaker 2>there was another story that cornhile. I don't know whether

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<v Speaker 2>you've managed to see it yet. This is Tom Cruise

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<v Speaker 2>and of course his Mission Impossible movie that was a

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<v Speaker 2>huge hit over the weekend. There's a great piece by

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<v Speaker 2>Tony Cabatchio over the weekend. Tom Cruise really did get

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

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<v Speaker 2>The US Navy and Air Force Special Operations they decided

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<v Speaker 2>to accept the mission and to help Cruise's secret agent

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<v Speaker 2>Ethan Huh and save the world, or at least to

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<v Speaker 2>make a bit of the movie about it. This is

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<v Speaker 2>the story on the blue Egg Turtle that has kind

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<v Speaker 2>of fascinated all of us the Final Reckoning. Of course,

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<v Speaker 2>Paramount reported a blowout budget for this movie four hundred

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<v Speaker 2>million dollars. Got a break though, because the carrier and

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<v Speaker 2>crew were already on schedule training missions, so they managed

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<v Speaker 2>to sort of get that assistance. Most if not all,

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<v Speaker 2>of the aircraft time was logged as official training requirements

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

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<v Speaker 2>not seen this movie yet, but I bet a lot

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

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<v Speaker 2>So one of the stories that I've been reading about

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<v Speaker 2>this morning, and the helping hand for one of America's

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

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<v Speaker 2>this morning, a car plowed into crowds of Liverpool fans

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<v Speaker 2>who were celebrating their team winning the Premier League, leaving

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<v Speaker 2>almost fifty people injured. Join me now bergs a Tia

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<v Speaker 2>at a bio. Good morning, Tia. This was really awful,

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<v Speaker 2>wasn't it. It was such a celebratory weekend, a bank

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<v Speaker 2>holiday weekend, and the open top buses and crowds were

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<v Speaker 2>out to celebrate this victory, and then it just turned

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<v Speaker 2>into devastation.

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<v Speaker 4>What do we know about what happened?

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<v Speaker 9>Yeah, Caroline, as you say, it was supposed to be

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<v Speaker 9>a day's celebration for the club and also for the city.

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<v Speaker 9>Hundreds of thousands of people had come out to celebrate the.

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<v Speaker 4>Team's Premier League victory.

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<v Speaker 9>It was a victory which had made them arguably the

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<v Speaker 9>most successful club in England, so there was this real

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<v Speaker 9>sense of jubilation, but that quickly did turn to terror

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<v Speaker 9>after the incident that happened on Water Street, which is

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

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<v Speaker 9>Just moments before the incident occurred on Water Street, the

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<v Speaker 9>Liverpool FC bus and team had actually just paraded their

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<v Speaker 9>Premier League trophy from the top of an open top

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<v Speaker 9>bus as you meant, and just to give you a

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<v Speaker 9>bit of context, Water Street is just about a mile

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<v Speaker 9>before the end of the parade's designated route, so according

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<v Speaker 9>to Merseyside Police, a car collided with a number of

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<v Speaker 9>pedestrians who were celebrating the victory. The Ambulance Service says

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<v Speaker 9>that twenty seven people were taken to hospital in the aftermath,

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<v Speaker 9>with two including one child, seriously injured, and a further

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<v Speaker 9>twenty people were treated for injuries at the scene and

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<v Speaker 9>four people including a child, were lifted from beneath the car.

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<v Speaker 9>That's according to Merseyside's Fire chief. So really tragic scenes

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<v Speaker 9>happening on what was supposed to be a day of

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<v Speaker 9>celebration for the city of Liverpool.

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<v Speaker 2>Yeah, absolutely, it had been a day of celebration and

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<v Speaker 2>that the incident took place around six o'clock in the

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<v Speaker 2>evening and arrest made.

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<v Speaker 4>What have police said so?

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<v Speaker 9>The Merseyside Police held a press conference yesterday evening and

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<v Speaker 9>they also released a statement telling us that a fifty

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<v Speaker 9>three year old white British Man has been arrested and

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<v Speaker 9>the police do believe him to be the driver of

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<v Speaker 9>the vehicle. There are also inquiries into the exact circumstances

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<v Speaker 9>leading up to the collision that are underway and specialist

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<v Speaker 9>officers have been put in place to support the injured

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<v Speaker 9>and their families. The police did also clarify that the

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<v Speaker 9>incident is not currently being treated as terrorism and that's

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<v Speaker 9>all we have from the police at this time is

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<v Speaker 9>they continue their investigations.

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<v Speaker 2>But the response on the club from the Premier League,

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<v Speaker 2>from the Prime Minister, a lot of people have made

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<v Speaker 2>some comments already.

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<v Speaker 7>Yeah, we have.

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<v Speaker 9>Heard responses from a number of people so far. We've

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<v Speaker 9>heard from both the Prime Minister and the leader of

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<v Speaker 9>the opposition. So Kis Starma shared his thanks to the

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<v Speaker 9>police and the emergency services on x and he said

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<v Speaker 9>his thoughts were with those affected and similarly, the Conservative

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<v Speaker 9>leader Kemmy Beisenok also shared a similar sentiment on the platform.

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<v Speaker 9>Liverpool Football Club is understood to have boned the celebrations

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<v Speaker 9>for its own staff due to the incident. We often

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<v Speaker 9>forget this is not just the end of a successful

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<v Speaker 9>season for Liverpool, but it's the end of a football

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<v Speaker 9>season and all clubs really do tend to celebrate that

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<v Speaker 9>point in times, the end of a lot of hard

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<v Speaker 9>work for the staff. But those celebrations on hold for

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<v Speaker 9>the moment. They have confirmed that they're in touch with

0:13:20.600 --> 0:13:22.840
<v Speaker 9>the police as investigations continue.

0:13:22.840 --> 0:13:23.440
<v Speaker 4>They said they.

0:13:23.360 --> 0:13:27.679
<v Speaker 9>Will offer their full support and cooperation. They've also shared

0:13:27.679 --> 0:13:30.120
<v Speaker 9>thoughts for the victims in a statement, and also their

0:13:30.240 --> 0:13:34.520
<v Speaker 9>rivals Everton FC, who neighbor the club, have expressed their support.

0:13:34.559 --> 0:13:37.440
<v Speaker 9>They're putting on a united front in the face of

0:13:37.480 --> 0:13:38.160
<v Speaker 9>this incident.

0:13:38.440 --> 0:13:40.680
<v Speaker 4>Ok Ti, but thank you so much for being with me.

0:13:41.320 --> 0:13:43.880
<v Speaker 2>Yeah, we are really hoping for the swift recovery of

0:13:43.920 --> 0:13:46.800
<v Speaker 2>anybody hurt in that incident. Bluebag's h at at Abio,

0:13:46.920 --> 0:13:51.760
<v Speaker 2>thank you for your reporting. Now a US asset managers

0:13:51.800 --> 0:13:56.160
<v Speaker 2>are coming under increasing scrutiny and losing mandates with European

0:13:56.200 --> 0:14:00.520
<v Speaker 2>pension funds. Amid concerns that America's investment industry is caving

0:14:00.559 --> 0:14:04.400
<v Speaker 2>into pressure from the Trump administration on basic principles, including

0:14:04.440 --> 0:14:08.599
<v Speaker 2>climate change and on diversity, equity and inclusion. Joining me

0:14:08.679 --> 0:14:12.120
<v Speaker 2>now as Bloomberg Senior Editor for US Economics and Government,

0:14:12.160 --> 0:14:15.800
<v Speaker 2>Derek Wallbank, Derek, good morning. So there is this Dutch

0:14:15.880 --> 0:14:20.120
<v Speaker 2>pension fund huge assets under management PME, which has issued

0:14:20.280 --> 0:14:24.560
<v Speaker 2>a warning to US money managers. What are they saying exactly.

0:14:24.560 --> 0:14:26.520
<v Speaker 7>Well, thank you so much and good morning. Look.

0:14:26.880 --> 0:14:31.400
<v Speaker 10>PME is basically saying, quite simply that US funds are

0:14:31.480 --> 0:14:34.200
<v Speaker 10>not condemning what Trump is doing, how he's operating, how

0:14:34.240 --> 0:14:40.680
<v Speaker 10>he's handling issues including climate change, the judiciary, diversity inclusion,

0:14:40.760 --> 0:14:44.160
<v Speaker 10>other things of that nature. It's really a continuation of

0:14:44.200 --> 0:14:47.640
<v Speaker 10>a split that we're seeing between Europe and the United

0:14:47.680 --> 0:14:50.280
<v Speaker 10>States and a number of different areas.

0:14:50.320 --> 0:14:50.520
<v Speaker 7>Now.

0:14:50.720 --> 0:14:54.600
<v Speaker 10>European funds have the ability to choose who they want

0:14:54.640 --> 0:14:57.560
<v Speaker 10>to manage things, you know, and to be involved in.

0:14:59.560 --> 0:15:00.560
<v Speaker 7>What the are doing.

0:15:01.640 --> 0:15:04.720
<v Speaker 10>To put real quite simply, they're taking a moment at

0:15:04.720 --> 0:15:08.240
<v Speaker 10>this point, many of them. PM is by far not

0:15:08.400 --> 0:15:11.400
<v Speaker 10>alone to say, hang on a second, let's just see

0:15:11.440 --> 0:15:14.160
<v Speaker 10>sort of where we are, and if you are aligned

0:15:14.160 --> 0:15:17.760
<v Speaker 10>with what we're looking at doing now. I should say

0:15:17.800 --> 0:15:20.520
<v Speaker 10>here ESG sort of goes into three buckets.

0:15:20.560 --> 0:15:20.720
<v Speaker 7>Right.

0:15:20.720 --> 0:15:24.080
<v Speaker 10>There's offense you're trying to you're trying to gain alpha

0:15:24.840 --> 0:15:27.120
<v Speaker 10>and a differential in returns.

0:15:26.840 --> 0:15:29.480
<v Speaker 7>There's also like defense.

0:15:29.480 --> 0:15:34.080
<v Speaker 10>Of trying to stop having a potential regulatory issue, and

0:15:34.120 --> 0:15:36.920
<v Speaker 10>we do see some of these issues cropping up in

0:15:36.960 --> 0:15:40.480
<v Speaker 10>regulation as well. And then there's also values, right, and

0:15:40.960 --> 0:15:44.000
<v Speaker 10>this is where we're seeing the European funds speaking out.

0:15:44.360 --> 0:15:47.680
<v Speaker 2>Yeah, on State Street has already lost some European pension

0:15:47.720 --> 0:15:51.240
<v Speaker 2>money because of this. It looks like US management managers

0:15:51.240 --> 0:15:54.600
<v Speaker 2>are basically court, aren't they between the Trump administration and

0:15:54.640 --> 0:15:59.680
<v Speaker 2>their goals and the Republican Party maybe more Republican leaning

0:15:59.720 --> 0:16:03.280
<v Speaker 2>state And then Europe and European standards.

0:16:03.880 --> 0:16:06.160
<v Speaker 10>Yeah, well, and I mentioned the defense and regulation for

0:16:06.240 --> 0:16:10.240
<v Speaker 10>precisely this point, right, because Europe in a lot of ways,

0:16:10.240 --> 0:16:12.760
<v Speaker 10>and certainly I'm sitting in Singapore right now, and European

0:16:12.840 --> 0:16:15.760
<v Speaker 10>regulations are really a global standard. A lot of firms

0:16:15.880 --> 0:16:18.560
<v Speaker 10>have to use the European standards because they tend to

0:16:18.560 --> 0:16:21.040
<v Speaker 10>be the toughest. So if you work to the European standard,

0:16:21.240 --> 0:16:24.000
<v Speaker 10>you're sort of good throughout the way. The thing is

0:16:24.040 --> 0:16:27.200
<v Speaker 10>though in the United States there has been a backlash

0:16:27.240 --> 0:16:30.440
<v Speaker 10>too that certainly with some states. Texas is the big

0:16:30.480 --> 0:16:33.360
<v Speaker 10>one that have said, and hang on a second, we

0:16:33.400 --> 0:16:35.880
<v Speaker 10>don't like the way that you're doing this. We want

0:16:35.880 --> 0:16:39.160
<v Speaker 10>it done a different way, and often in polar opposition.

0:16:39.240 --> 0:16:42.160
<v Speaker 10>So it is sort of taking these firms, many of

0:16:42.200 --> 0:16:45.320
<v Speaker 10>which candidly would prefer to focus.

0:16:44.960 --> 0:16:47.960
<v Speaker 7>On making money, and putting.

0:16:47.680 --> 0:16:50.000
<v Speaker 10>Them a bit between a rock and a hard place

0:16:50.120 --> 0:16:54.680
<v Speaker 10>regulatory wise, between Europe and some of these conservative areas.

0:16:55.360 --> 0:16:55.680
<v Speaker 4>Yeah.

0:16:55.720 --> 0:16:59.680
<v Speaker 2>Absolutely, and pme that Dutch pension fund manager says that

0:16:59.720 --> 0:17:02.520
<v Speaker 2>it's reviewing and is going to make a decision sort

0:17:02.520 --> 0:17:05.040
<v Speaker 2>of shortly and maybe in the next few weeks. Derek,

0:17:05.080 --> 0:17:07.199
<v Speaker 2>thank you so much for being with me. We'll be

0:17:07.320 --> 0:17:11.240
<v Speaker 2>continuing to track this story, of course, as you say globally. Bloomberg,

0:17:11.320 --> 0:17:15.600
<v Speaker 2>Senior editor for US Economics and Government, Derek Wallbank. Now

0:17:15.600 --> 0:17:18.040
<v Speaker 2>Here in the UK, the government's expected to confirm that

0:17:18.119 --> 0:17:21.000
<v Speaker 2>it has fully divested its holdings in Nowwest, meaning that

0:17:21.040 --> 0:17:24.639
<v Speaker 2>the bank will chart its own course nearly twenty years

0:17:24.680 --> 0:17:26.800
<v Speaker 2>since it was bailed out in the two thousand and

0:17:26.880 --> 0:17:30.280
<v Speaker 2>eight financial crisis. Plyempic's finance reporter will Shaw has been

0:17:31.440 --> 0:17:35.040
<v Speaker 2>reporting on this. The government finally stepping back will it

0:17:35.080 --> 0:17:38.080
<v Speaker 2>has been a pretty long road though, hasn't it.

0:17:38.080 --> 0:17:38.480
<v Speaker 7>It has.

0:17:39.040 --> 0:17:41.720
<v Speaker 11>So this all goes back seventeen years to the financial

0:17:41.760 --> 0:17:44.239
<v Speaker 11>crisis and the collapse of what was then known as

0:17:44.280 --> 0:17:47.400
<v Speaker 11>the Royal Bank of Scotland. At the time, the bank

0:17:47.440 --> 0:17:50.440
<v Speaker 11>had a two point two trillion pound balance sheet and

0:17:50.520 --> 0:17:53.760
<v Speaker 11>around the world it employed nearly two hundred thousand staff.

0:17:54.080 --> 0:17:56.720
<v Speaker 11>And the newest that we know today is very different firm.

0:17:56.880 --> 0:17:59.479
<v Speaker 11>The balance sheet is just seven hundred and eight billion

0:17:59.520 --> 0:18:02.439
<v Speaker 11>pounds and the headcount is less than a third of

0:18:02.480 --> 0:18:04.560
<v Speaker 11>what it was at that time, and.

0:18:04.560 --> 0:18:07.040
<v Speaker 7>The intervening period saw huge restructuring.

0:18:07.520 --> 0:18:09.760
<v Speaker 11>In the first five years alone, the bank cut more

0:18:09.800 --> 0:18:13.520
<v Speaker 11>than thirty nine thousand jobs and quit over twenty countries,

0:18:13.640 --> 0:18:16.280
<v Speaker 11>and it would go on to pivot away for investment banking,

0:18:16.480 --> 0:18:18.920
<v Speaker 11>which had got it into the scrape it found itself,

0:18:19.280 --> 0:18:22.960
<v Speaker 11>and to focus on domestic commercial and retail banking instead.

0:18:24.200 --> 0:18:27.320
<v Speaker 2>The thing is the sale of the government stake in

0:18:27.359 --> 0:18:30.880
<v Speaker 2>that west has not been without controversy. What has the

0:18:30.880 --> 0:18:33.600
<v Speaker 2>bailout actually cost UK taxpayers?

0:18:34.119 --> 0:18:37.520
<v Speaker 11>So basically, after the crisis, Westminster made a series of

0:18:37.520 --> 0:18:42.760
<v Speaker 11>emergency cash injections that brought the its stake up to

0:18:42.880 --> 0:18:46.800
<v Speaker 11>a controlling eighty four percent, and that left UK taxpayers

0:18:46.840 --> 0:18:51.160
<v Speaker 11>shouldering a bill of nearly forty six billion pounds. Now

0:18:51.200 --> 0:18:54.160
<v Speaker 11>after the final sale, we calculate that the government will

0:18:54.160 --> 0:18:56.680
<v Speaker 11>be out of pocket by about ten billion pounds.

0:18:57.080 --> 0:18:59.240
<v Speaker 7>Now if you compare that with Lloyd's Banking Group.

0:18:59.560 --> 0:19:01.439
<v Speaker 11>By the time and that was bailed out, and by

0:19:01.480 --> 0:19:04.320
<v Speaker 11>the time it became fully private in twenty seventeen, the

0:19:04.359 --> 0:19:08.359
<v Speaker 11>Treasury had actually gained eight hundred and ninety four million pounds.

0:19:08.760 --> 0:19:11.240
<v Speaker 7>So obviously there's a lot more money.

0:19:11.280 --> 0:19:13.399
<v Speaker 11>A lot of money is being lost on that West.

0:19:14.000 --> 0:19:16.120
<v Speaker 11>The government would tell you it's not really the right

0:19:16.160 --> 0:19:19.000
<v Speaker 11>way of looking at it, and that without the rescue,

0:19:19.160 --> 0:19:21.879
<v Speaker 11>the UK's financial system might have collapsed.

0:19:22.800 --> 0:19:27.000
<v Speaker 2>Yeah, okay, so then what for what about the future

0:19:27.040 --> 0:19:29.280
<v Speaker 2>of the bank. Then they've been on a bit of

0:19:29.359 --> 0:19:34.280
<v Speaker 2>an acquisition spree recently. What's the shape of NatWest, which

0:19:34.320 --> 0:19:37.640
<v Speaker 2>actually is last year UK focused bank, isn't it?

0:19:37.640 --> 0:19:39.359
<v Speaker 7>It's very UK focused? Yeah?

0:19:39.680 --> 0:19:43.160
<v Speaker 11>So last year they acquired the majority of banking assets

0:19:43.200 --> 0:19:47.000
<v Speaker 11>from the retailer Sainsbury's and they also around the same

0:19:47.000 --> 0:19:50.080
<v Speaker 11>time they picked up a mortgage portfolio from Metro Bank

0:19:51.160 --> 0:19:53.920
<v Speaker 11>in a two point five billion pounds deal, and more

0:19:53.960 --> 0:19:58.480
<v Speaker 11>recently it was reported that they'd shown interest in Sandander's

0:19:58.640 --> 0:20:03.240
<v Speaker 11>UK Banking tail banking business, though they were ultimately rebuffed

0:20:03.280 --> 0:20:05.920
<v Speaker 11>on that affront. So they are yet, like you say,

0:20:05.960 --> 0:20:09.439
<v Speaker 11>they are showing a renewed interest in acquisitions. Paul Thwaite,

0:20:09.480 --> 0:20:13.160
<v Speaker 11>who's the CEO today, said at the annual general meeting

0:20:13.160 --> 0:20:15.679
<v Speaker 11>earlier this year that if they have the ability to

0:20:15.720 --> 0:20:18.960
<v Speaker 11>add scale and add capability, they'll have a look at it.

0:20:19.920 --> 0:20:22.280
<v Speaker 11>But he was keen to stress, as he always does,

0:20:22.359 --> 0:20:26.800
<v Speaker 11>that any deals aren't likely to transform thatwere sob all

0:20:26.800 --> 0:20:30.399
<v Speaker 11>direction and that the firm will remain disciplined, which is

0:20:30.480 --> 0:20:35.199
<v Speaker 11>essentially it was undisciplined acquisitions that brought it to the

0:20:35.320 --> 0:20:37.840
<v Speaker 11>verge of disaster back in two thousand and eight.

0:20:39.720 --> 0:20:42.280
<v Speaker 1>This is Bloomberg Daybreak Europe. You're a morning brief on

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