1
00:00:02,400 --> 00:00:09,799
Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg

2
00:00:09,840 --> 00:00:12,879
Speaker 1: Day Bak podcast, available every morning on Apple, Spotify or

3
00:00:12,880 --> 00:00:15,960
Speaker 1: wherever you listen. It's Tuesday, the twenty first of January

4
00:00:16,000 --> 00:00:17,920
Speaker 1: in London. I'm Caroline Hepcare and.

5
00:00:17,880 --> 00:00:21,319
Speaker 2: I'm Stephen Carroll. Coming up today. President Trump begins his

6
00:00:21,480 --> 00:00:24,400
Speaker 2: second term in office with a pledge to enact twenty

7
00:00:24,480 --> 00:00:27,640
Speaker 2: five percent tariffs on Mexico and Canada.

8
00:00:27,840 --> 00:00:32,120
Speaker 1: The newly inaugurated US leader signs a raft of executive

9
00:00:32,320 --> 00:00:37,279
Speaker 1: orders on everything from immigration and energy to overturning January

10
00:00:37,320 --> 00:00:38,519
Speaker 1: sixth convictions.

11
00:00:38,920 --> 00:00:42,400
Speaker 2: Plus getting ready for takeoff, Bloomberg learns the UK governments

12
00:00:42,440 --> 00:00:46,680
Speaker 2: preparing to approve expansions to Heathrow, Gatwick and Luton airports.

13
00:00:46,840 --> 00:00:48,839
Speaker 1: Let's start with a roundup of our top stories.

14
00:00:50,000 --> 00:00:52,800
Speaker 2: US President Donald Trump has begun his term in office

15
00:00:52,800 --> 00:00:57,000
Speaker 2: with a blizzard of policy announcements, reviews, and executive orders.

16
00:00:57,440 --> 00:01:00,160
Speaker 2: In his inaugural address, the forty fifth and now forty

17
00:01:00,200 --> 00:01:04,880
Speaker 2: seventh President vowed to prioritize America's interests and create a

18
00:01:05,000 --> 00:01:06,480
Speaker 2: golden age for the country.

19
00:01:06,720 --> 00:01:10,200
Speaker 3: From this day forward, our country will flourish and be

20
00:01:10,319 --> 00:01:13,039
Speaker 3: respected again all over the world. We will be the

21
00:01:13,160 --> 00:01:16,520
Speaker 3: envy of every nation, and we will not allow ourselves

22
00:01:16,560 --> 00:01:19,160
Speaker 3: to be taken advantage of any longer.

23
00:01:19,480 --> 00:01:22,600
Speaker 2: Speaking to reporters in the Oval Office later, President Trump

24
00:01:22,600 --> 00:01:25,760
Speaker 2: said he plans to impose tariffs on America's two closest

25
00:01:25,800 --> 00:01:27,640
Speaker 2: neighbors by the start of February.

26
00:01:27,760 --> 00:01:28,440
Speaker 4: We're thinking in.

27
00:01:28,440 --> 00:01:31,480
Speaker 5: Terms of twenty five percent on Mexico and Canada, because

28
00:01:31,480 --> 00:01:36,039
Speaker 5: they're allowing vast numbers of people. Canada is very beat abuseral,

29
00:01:36,160 --> 00:01:38,720
Speaker 5: so vast numbers of people to come in and fentanyl

30
00:01:38,800 --> 00:01:39,240
Speaker 5: to come in.

31
00:01:39,600 --> 00:01:43,080
Speaker 2: The dollar jumped against most major currencies following Trump's remarks.

32
00:01:43,200 --> 00:01:46,319
Speaker 2: If imposed, the tariffs woul affect one point eight trillion

33
00:01:46,360 --> 00:01:49,000
Speaker 2: dollars worth of goods and services trade and would likely

34
00:01:49,040 --> 00:01:53,000
Speaker 2: lead to retaliatory measures from Canada and Mexico, But to.

35
00:01:53,000 --> 00:01:57,440
Speaker 1: The new president held off on announcing tariffs on China. Instead,

36
00:01:57,520 --> 00:02:01,600
Speaker 1: Donald Trump ordered his administration to address unfair trade practices

37
00:02:01,720 --> 00:02:05,880
Speaker 1: globally and investigate whether Beijing had complied with the deal

38
00:02:06,000 --> 00:02:10,560
Speaker 1: signed during his first term. Political science professor Adam Raimi

39
00:02:10,680 --> 00:02:13,680
Speaker 1: says Trump may have longer term strategic games.

40
00:02:14,280 --> 00:02:16,240
Speaker 6: One of the things that will remain to be seen

41
00:02:16,320 --> 00:02:18,960
Speaker 6: is whether or not the talk of tariffs is a

42
00:02:19,000 --> 00:02:21,640
Speaker 6: bargaining ship or if it's an actual policy. On the

43
00:02:21,680 --> 00:02:23,640
Speaker 6: one hand, in his inauguration speech.

44
00:02:23,400 --> 00:02:24,800
Speaker 2: Trump talked a lot.

45
00:02:24,639 --> 00:02:27,720
Speaker 6: About President William McKinley in the late nineteenth century and

46
00:02:27,720 --> 00:02:31,200
Speaker 6: how tariffs helped to build American industry and were great.

47
00:02:31,280 --> 00:02:32,400
Speaker 6: But I think at the end of the day, a

48
00:02:32,480 --> 00:02:35,400
Speaker 6: lot of folks have suggested that his talk of imposing

49
00:02:35,480 --> 00:02:38,440
Speaker 6: high tariffs on America and major American trade partners is

50
00:02:38,480 --> 00:02:39,360
Speaker 6: a bargaining.

51
00:02:38,960 --> 00:02:43,400
Speaker 1: Ship as a ramie who teaches that nyu abu dabi

52
00:02:43,480 --> 00:02:47,080
Speaker 1: speaking them. According to an unreleased fact sheet seen by Bloomberg,

53
00:02:47,120 --> 00:02:50,160
Speaker 1: the moves taken by Trump's administration are aimed at quote,

54
00:02:50,320 --> 00:02:55,320
Speaker 1: reversing the destructive impact of globalist america last trade policy.

55
00:02:55,840 --> 00:02:59,200
Speaker 1: Doing an impromptu press conference in the Oval Office yesterday

56
00:02:59,280 --> 00:03:03,080
Speaker 1: evening trump voyage committee to a plan for Chinese tariffs,

57
00:03:03,080 --> 00:03:06,400
Speaker 1: person Trump said he's been invited to China and that

58
00:03:06,440 --> 00:03:08,919
Speaker 1: there would be further meetings and calls with President g

59
00:03:09,440 --> 00:03:13,480
Speaker 1: potentially buying time for China to influence the US well.

60
00:03:13,520 --> 00:03:16,800
Speaker 2: Trump also temporarily halted a ban on the Chinese owned

61
00:03:16,919 --> 00:03:20,560
Speaker 2: app TikTok in the US an executive order signed by

62
00:03:20,600 --> 00:03:24,119
Speaker 2: the president grants the platform a seventy five day reprieve

63
00:03:24,200 --> 00:03:27,880
Speaker 2: from a countrywide prohibition that took effect on Sunday. He

64
00:03:27,919 --> 00:03:30,000
Speaker 2: even suggested that the US could be open to a

65
00:03:30,040 --> 00:03:31,320
Speaker 2: partnership with the company.

66
00:03:31,960 --> 00:03:34,359
Speaker 5: The US should be entitled to get half of TikTok.

67
00:03:34,960 --> 00:03:37,960
Speaker 5: But it's worthless if I don't. If the President doesn't sign,

68
00:03:38,880 --> 00:03:43,320
Speaker 5: then it's worthless. So I think like a joint venture.

69
00:03:43,360 --> 00:03:46,000
Speaker 5: I think we would have a joint venture with the

70
00:03:46,080 --> 00:03:48,000
Speaker 5: people from TikTok. We'll see what happened.

71
00:03:48,680 --> 00:03:51,800
Speaker 2: Donald Trump also said that the US arm of the platform,

72
00:03:51,920 --> 00:03:55,360
Speaker 2: estimated to be worth it around fifty billion dollars, could

73
00:03:55,440 --> 00:03:59,640
Speaker 2: hit one trillion dollars in market value under American ownership.

74
00:04:00,040 --> 00:04:03,360
Speaker 1: Donald Trump has pardoned almost all of those convicted for

75
00:04:03,560 --> 00:04:07,000
Speaker 1: participating in the January sixth, twenty twenty one attack on

76
00:04:07,040 --> 00:04:11,120
Speaker 1: the US Capitol. Charges in any pending cases relating to

77
00:04:11,160 --> 00:04:14,080
Speaker 1: the incident were also ordered to be dropped by the

78
00:04:14,120 --> 00:04:17,719
Speaker 1: newly sworn in president. The President spoke to reporters whilst

79
00:04:17,760 --> 00:04:18,800
Speaker 1: signing the orders.

80
00:04:19,240 --> 00:04:24,800
Speaker 5: So this is January sixth. These are the hostages, approximately

81
00:04:24,839 --> 00:04:28,719
Speaker 5: fifteen hundred for a pardon full part.

82
00:04:29,080 --> 00:04:31,760
Speaker 3: We hope they get them. We hope they come out tonight.

83
00:04:31,600 --> 00:04:35,680
Speaker 1: Frankly, President Donald Trump speaking. The pardons cover cases ranging

84
00:04:36,000 --> 00:04:40,799
Speaker 1: from misdemeanor trespassing to assaulting police with weapons and effect

85
00:04:40,960 --> 00:04:44,000
Speaker 1: over one thy five hundred people. Trump also commuted the

86
00:04:44,040 --> 00:04:49,000
Speaker 1: present sentences of fourteen people associated with extremist groups.

87
00:04:49,400 --> 00:04:53,080
Speaker 2: The new president has made sweeping changes to how government

88
00:04:53,279 --> 00:04:56,599
Speaker 2: works and to US policies on his first day in office,

89
00:04:56,680 --> 00:05:00,359
Speaker 2: and moves that will reshape the global energy landscape. Donald

90
00:05:00,360 --> 00:05:03,839
Speaker 2: Trump ordered the US to withdraw from the Paris Climate Agreement.

91
00:05:04,040 --> 00:05:08,839
Speaker 2: He pushed to end electric vehicle subsidies, potentially boosting average

92
00:05:08,880 --> 00:05:12,440
Speaker 2: new car prices by three thousand dollars, and the removal

93
00:05:12,440 --> 00:05:15,400
Speaker 2: of bands on offshore oil and gas drilling and a

94
00:05:15,440 --> 00:05:17,479
Speaker 2: freeze to wind power permits.

95
00:05:18,000 --> 00:05:20,880
Speaker 1: Trump also signed off on major actions that he had

96
00:05:20,920 --> 00:05:23,960
Speaker 1: promise on the campaign trail. He declared a national emergency

97
00:05:24,000 --> 00:05:26,719
Speaker 1: at the border with Mexico and is seeking to prevent

98
00:05:26,839 --> 00:05:31,880
Speaker 1: babies born by two illegal migrants from being granted citizenship.

99
00:05:31,960 --> 00:05:36,120
Speaker 1: The president also directed that the US would withdraw from

100
00:05:36,160 --> 00:05:39,640
Speaker 1: the World Health Organization. He rescinded all transparency in safety

101
00:05:39,680 --> 00:05:44,960
Speaker 1: requirements for artificial intelligence developers. He acts diversity programs at

102
00:05:45,000 --> 00:05:48,719
Speaker 1: federal agencies. It is expected that many of the orders

103
00:05:48,720 --> 00:05:51,600
Speaker 1: that Trump signed on Monday will be challenged in court.

104
00:05:51,920 --> 00:05:55,040
Speaker 2: Another news, the UK government is preparing to back building

105
00:05:55,120 --> 00:05:58,279
Speaker 2: a third runway at Heathrow Airport in a bid for

106
00:05:58,440 --> 00:06:01,560
Speaker 2: economic growth. Bloomberg has learned that Labor will back the

107
00:06:01,600 --> 00:06:05,479
Speaker 2: controversial expansions to airports. James Wilcock has the details.

108
00:06:06,040 --> 00:06:09,320
Speaker 7: A third runway at Heathrow was first proposed in two

109
00:06:09,400 --> 00:06:13,200
Speaker 7: thousand and three. What followed was a twenty year wrangling

110
00:06:13,240 --> 00:06:19,920
Speaker 7: as UK politicians wavered between economic growth, environmental credentials and popularity. Now,

111
00:06:20,080 --> 00:06:22,839
Speaker 7: sources tell Bloomberg the government is giving the plans a

112
00:06:22,920 --> 00:06:26,400
Speaker 7: green light. They want to signal their pro growth credentials

113
00:06:26,400 --> 00:06:29,720
Speaker 7: by approving a number of infrastructure projects. But if they

114
00:06:29,800 --> 00:06:33,480
Speaker 7: do go ahead, Labor may find themselves accused of sacrificing

115
00:06:33,480 --> 00:06:37,080
Speaker 7: the environment for growth, a charge they themselves made against

116
00:06:37,080 --> 00:06:41,840
Speaker 7: the previous Conservative governments in London. James Wilcock, Bloomberg Radio, and.

117
00:06:41,800 --> 00:06:44,200
Speaker 1: Those are our top stories for you this morning on

118
00:06:44,279 --> 00:06:48,080
Speaker 1: the markets. After initial a relief over tariff action saw

119
00:06:48,080 --> 00:06:51,239
Speaker 1: the dollar weakening by the most in fourteen months, as

120
00:06:51,320 --> 00:06:54,560
Speaker 1: the White House executive order headlines started to roll in,

121
00:06:55,000 --> 00:06:57,320
Speaker 1: we were on a huge roller coaster ride in terms

122
00:06:57,400 --> 00:07:00,880
Speaker 1: of the FX space. The dollar has strengthened this morning,

123
00:07:00,920 --> 00:07:04,239
Speaker 1: the Canadian dollar falling now point eight percent, the Mexican

124
00:07:04,279 --> 00:07:08,240
Speaker 1: PAYESO dropping one point one percent against the dollar. Cash

125
00:07:08,279 --> 00:07:11,600
Speaker 1: treasuries also reopening today after a holiday. They show some

126
00:07:11,760 --> 00:07:14,880
Speaker 1: relief on the lack of big tariff news or at

127
00:07:14,960 --> 00:07:18,360
Speaker 1: least a real timeline. Ten year yields lower by eight

128
00:07:18,360 --> 00:07:21,720
Speaker 1: basis points this morning, and those are our top stories

129
00:07:21,720 --> 00:07:24,560
Speaker 1: for you this morning on the markets. After initial a

130
00:07:24,640 --> 00:07:27,560
Speaker 1: relief over tariff actions saw the dollar weakening by the

131
00:07:27,600 --> 00:07:31,400
Speaker 1: most in fourteen months. As the White House Executive order

132
00:07:31,440 --> 00:07:34,360
Speaker 1: headlines started to roll in, we were on a huge

133
00:07:34,440 --> 00:07:37,240
Speaker 1: roller coaster ride in terms of the FX space. The

134
00:07:37,280 --> 00:07:41,200
Speaker 1: dollar has strengthened this morning, the Canadian dollar falling now

135
00:07:41,280 --> 00:07:44,760
Speaker 1: point eight percent, the Mexican payso dropping one point one

136
00:07:44,800 --> 00:07:48,960
Speaker 1: percent against the dollar. Cash treasuries also reopening today after

137
00:07:49,000 --> 00:07:51,560
Speaker 1: a holiday. They show some relief on the lack of

138
00:07:51,720 --> 00:07:55,440
Speaker 1: big tariff news or at least a real timeline. Ten

139
00:07:55,560 --> 00:07:57,960
Speaker 1: year yields lower by eight basis points this morning.

140
00:07:58,640 --> 00:08:01,400
Speaker 2: Hello moment, we will have more on what Donald Trump

141
00:08:01,400 --> 00:08:03,320
Speaker 2: announced on his first day in office and how that

142
00:08:03,400 --> 00:08:06,320
Speaker 2: might affect the rest of the world. But it was

143
00:08:06,560 --> 00:08:07,760
Speaker 2: quite a day in Washington.

144
00:08:08,040 --> 00:08:11,560
Speaker 1: Yeah, we got two major speeches from President Donald Trump,

145
00:08:11,600 --> 00:08:15,480
Speaker 1: the inaugural address, then a sort of more relaxed second speech.

146
00:08:16,080 --> 00:08:19,520
Speaker 1: It has been, you have to say, the most extraordinary

147
00:08:19,640 --> 00:08:23,080
Speaker 1: political comeback. Yesterday perhaps was the pinnacle of that. We

148
00:08:23,160 --> 00:08:25,680
Speaker 1: often think that we're greater pomp and circumstance here in

149
00:08:25,680 --> 00:08:28,520
Speaker 1: the UK, Well, it was absolutely incredible. In the US.

150
00:08:28,920 --> 00:08:32,320
Speaker 1: Trump has promised this golden age for America. I was

151
00:08:32,360 --> 00:08:37,679
Speaker 1: struck by President Trump's assertion that his victory was divinely ordained.

152
00:08:37,679 --> 00:08:40,760
Speaker 1: This is what he said. I felt then the assassination

153
00:08:40,840 --> 00:08:43,920
Speaker 1: attempts against his life, and believe even more so now

154
00:08:43,920 --> 00:08:46,000
Speaker 1: that my life was saved for a reason. I was

155
00:08:46,040 --> 00:08:50,680
Speaker 1: saved by God to make America great again. I think,

156
00:08:50,880 --> 00:08:54,160
Speaker 1: actually abroad, the issue is going to be much more

157
00:08:54,240 --> 00:08:58,760
Speaker 1: about the more aggressive foreign policy stance that this Trump

158
00:08:58,800 --> 00:09:01,920
Speaker 1: administration could take. He talked a lot about the Panama

159
00:09:01,960 --> 00:09:04,280
Speaker 1: can alum and another number of other countries.

160
00:09:04,440 --> 00:09:06,960
Speaker 2: Yeah, indeed, I mean, if you just read one piece

161
00:09:07,120 --> 00:09:09,880
Speaker 2: from the full covers of course, across Bloomberg's platforms, this

162
00:09:09,920 --> 00:09:13,319
Speaker 2: Morning Bloomberg opinions John Author's saying get used to the

163
00:09:13,400 --> 00:09:18,000
Speaker 2: roller coaster. He's back, include several a's in the headline.

164
00:09:18,480 --> 00:09:20,880
Speaker 2: Just one view, of course, on the market reaction, the

165
00:09:20,960 --> 00:09:23,840
Speaker 2: raft of policy measures so much to dig into, and

166
00:09:23,880 --> 00:09:27,360
Speaker 2: plenty of reporting of course from across Bloomberg. Yeah, Donald

167
00:09:27,400 --> 00:09:31,559
Speaker 2: Trump has acted swiftly, signing executive orders to begin implementing

168
00:09:31,600 --> 00:09:37,200
Speaker 2: his campaign pledges on deporting migrants, increasing energy production, exiting

169
00:09:37,240 --> 00:09:40,760
Speaker 2: the Paris Climate Accord and the World Health Organization, freezing

170
00:09:40,800 --> 00:09:44,520
Speaker 2: new regulations, and ending DEI policies for the military and

171
00:09:44,600 --> 00:09:48,240
Speaker 2: federal workforces. Joining us now to discuss, Bloomberg's senior editor

172
00:09:48,320 --> 00:09:52,000
Speaker 2: Bill ferries, Bill, let's start with some of the trade action.

173
00:09:52,520 --> 00:09:55,480
Speaker 2: Is this the start of a trade war with Mexico

174
00:09:55,640 --> 00:09:56,440
Speaker 2: and Canada?

175
00:09:56,679 --> 00:09:59,520
Speaker 8: Well, it's certainly a shot across the bow, because you know,

176
00:09:59,559 --> 00:10:02,000
Speaker 8: we didn't hear a lot about China. Looks like they're

177
00:10:02,040 --> 00:10:05,720
Speaker 8: still kind of reviewing their approach towards China. But Trump

178
00:10:05,760 --> 00:10:08,720
Speaker 8: did come out and say he plans to enact tariffs

179
00:10:08,480 --> 00:10:11,480
Speaker 8: of as much as twenty five percent on Mexico and

180
00:10:11,559 --> 00:10:15,200
Speaker 8: Canada by February first. Now February first, that gives him.

181
00:10:15,280 --> 00:10:19,480
Speaker 8: You know my by my check, about ten days or so. Uh,

182
00:10:19,520 --> 00:10:22,640
Speaker 8: there's definitely time in Trump in the Trump world to

183
00:10:23,080 --> 00:10:26,240
Speaker 8: negotiate some sort of a pause on that, uh, for

184
00:10:26,360 --> 00:10:29,840
Speaker 8: him to have talks with the leaders of Canada and Mexico, Uh,

185
00:10:29,960 --> 00:10:32,920
Speaker 8: to stave that off and be able to claim success

186
00:10:32,960 --> 00:10:35,960
Speaker 8: saying that you know, we've entered negotiations, so I'll give

187
00:10:36,080 --> 00:10:40,480
Speaker 8: I'll give Mexican, Mexico and Canada another month. But it

188
00:10:40,559 --> 00:10:42,400
Speaker 8: is it is a shot across the bow. I think

189
00:10:42,440 --> 00:10:45,360
Speaker 8: after the campaign in which he talked about tariff so much,

190
00:10:46,520 --> 00:10:49,080
Speaker 8: I think he there was a political need for him

191
00:10:49,120 --> 00:10:52,480
Speaker 8: to do something today on day one, because, as you've said,

192
00:10:52,559 --> 00:10:56,839
Speaker 8: he's got this slew of emergency order executive orders that

193
00:10:56,880 --> 00:10:59,200
Speaker 8: are that you know, he wants teriffs to be a

194
00:10:59,200 --> 00:11:01,800
Speaker 8: part of that. But we'll see. I think in the

195
00:11:01,840 --> 00:11:04,840
Speaker 8: Trump universe, ten eleven days is still time to negotiate.

196
00:11:06,080 --> 00:11:12,280
Speaker 1: Yes. Meanwhile, a lot of his pronouncements were focused domestically,

197
00:11:12,360 --> 00:11:16,440
Speaker 1: a crackdown on immigration and the border, major changes coming

198
00:11:16,559 --> 00:11:18,480
Speaker 1: to the workforce, ander citizens.

199
00:11:19,400 --> 00:11:21,400
Speaker 8: Yeah. I think that, you know, if there was one

200
00:11:21,520 --> 00:11:24,680
Speaker 8: overarching theme or one issue he hit the hardest on,

201
00:11:24,920 --> 00:11:28,319
Speaker 8: I think it really was declaring this emergency at the

202
00:11:28,360 --> 00:11:35,360
Speaker 8: southern border. They immediately canceled this app that migrants people

203
00:11:35,840 --> 00:11:38,040
Speaker 8: immigrants company to the United States would use to get

204
00:11:38,120 --> 00:11:43,240
Speaker 8: appointments with Customs and Border officials. This CBP app. There

205
00:11:43,240 --> 00:11:46,440
Speaker 8: were people at the southern border waiting to go into

206
00:11:46,480 --> 00:11:49,320
Speaker 8: their meetings based off the app, and the app just

207
00:11:49,360 --> 00:11:52,320
Speaker 8: shut down and they've put a pause on that. So

208
00:11:52,760 --> 00:11:55,800
Speaker 8: I think you are likely to see some sort of

209
00:11:55,840 --> 00:11:59,640
Speaker 8: increased troop presence at the US southern border in the

210
00:11:59,679 --> 00:12:04,800
Speaker 8: coming days. It might be national it might be reserve forces,

211
00:12:05,559 --> 00:12:07,440
Speaker 8: it may not be active military, but I think there's

212
00:12:07,440 --> 00:12:09,720
Speaker 8: going to be an armed more of an arm presence

213
00:12:09,760 --> 00:12:12,640
Speaker 8: at the border. That was really the core of Trump's

214
00:12:12,679 --> 00:12:15,600
Speaker 8: campaign in twenty sixteen and again in twenty twenty four.

215
00:12:15,720 --> 00:12:18,880
Speaker 8: So I think employers are going to be looking very

216
00:12:18,880 --> 00:12:21,720
Speaker 8: carefully about whether people who they expected to be coming

217
00:12:21,720 --> 00:12:23,959
Speaker 8: in and working on some of these short term visas

218
00:12:24,000 --> 00:12:25,600
Speaker 8: are going to be there or not. And then of

219
00:12:25,600 --> 00:12:28,679
Speaker 8: course all the people overseas who've been waiting at embassies

220
00:12:28,920 --> 00:12:33,360
Speaker 8: to come in, either as immigrants or even as visitors,

221
00:12:33,400 --> 00:12:35,520
Speaker 8: I think they're going to be wondering whether that's still

222
00:12:35,520 --> 00:12:36,439
Speaker 8: going to go through.

223
00:12:37,800 --> 00:12:42,199
Speaker 2: Bill another set of policy announcements which have global impact

224
00:12:42,559 --> 00:12:46,240
Speaker 2: energy opening up, pushing US oil opening up, drilling and

225
00:12:46,280 --> 00:12:49,000
Speaker 2: pushing US oil and gas exports, rowing back on EVSE

226
00:12:49,080 --> 00:12:52,359
Speaker 2: and wind farms. I mean, how significant are these measures.

227
00:12:53,000 --> 00:12:56,320
Speaker 8: It's hard to know. I mean, the US was already

228
00:12:56,720 --> 00:13:01,160
Speaker 8: basically producing a record amount of oil during the Biden administration,

229
00:13:02,160 --> 00:13:07,600
Speaker 8: So how much were restrictions really holding holding production back.

230
00:13:07,640 --> 00:13:09,400
Speaker 8: It's not really clear to me. I mean, some of

231
00:13:09,400 --> 00:13:11,640
Speaker 8: that is going to just be supply and demand in

232
00:13:11,679 --> 00:13:15,800
Speaker 8: the market. But I think the signal here, the bigger

233
00:13:15,840 --> 00:13:20,320
Speaker 8: picture signal, is is trying to cut red tape and regulations,

234
00:13:20,440 --> 00:13:24,440
Speaker 8: so regulations that may have prevented oil companies from drilling

235
00:13:24,520 --> 00:13:27,719
Speaker 8: in certain parts of the Gulf of Mexico, which he's

236
00:13:27,760 --> 00:13:31,120
Speaker 8: trying to rename the Gulf of America, or off the

237
00:13:31,120 --> 00:13:34,319
Speaker 8: eastern coast of the US. I think the message going

238
00:13:34,360 --> 00:13:38,280
Speaker 8: out is, hey, the federal regulations are getting rolled back there.

239
00:13:38,320 --> 00:13:41,880
Speaker 8: So if that's what's been holding you back, start, you know,

240
00:13:42,320 --> 00:13:44,480
Speaker 8: start telling us where you want to explore and where

241
00:13:44,520 --> 00:13:47,599
Speaker 8: you might be able to produce. If environmental regulations in

242
00:13:47,640 --> 00:13:51,800
Speaker 8: the American West have been stopping your fracking efforts, those

243
00:13:51,960 --> 00:13:56,080
Speaker 8: are likely going to be coming down. So I don't

244
00:13:56,120 --> 00:13:58,320
Speaker 8: know that. I don't know that we're going to suddenly

245
00:13:58,360 --> 00:14:02,040
Speaker 8: see America producing an extra million barrels of oil a day.

246
00:14:02,320 --> 00:14:04,400
Speaker 8: But I think the opportunity is going to be there

247
00:14:04,440 --> 00:14:07,959
Speaker 8: for companies that want to do more exploration to do it.

248
00:14:07,960 --> 00:14:10,400
Speaker 1: It is amazing that everyone is trying to assess the

249
00:14:10,440 --> 00:14:15,840
Speaker 1: size and sweep of the measures that Donald Trump has

250
00:14:15,880 --> 00:14:20,360
Speaker 1: signed in or agreed to. Day one, Trump talked about

251
00:14:20,720 --> 00:14:23,480
Speaker 1: tariffs are going to make us rich as hell. In

252
00:14:23,560 --> 00:14:26,920
Speaker 1: his words, a lot of people might the economists might

253
00:14:27,320 --> 00:14:32,280
Speaker 1: disagree with that. How overwhelmed slash on certain are people

254
00:14:32,320 --> 00:14:36,120
Speaker 1: about these policies? How do you assess the size and scope?

255
00:14:37,240 --> 00:14:40,040
Speaker 8: Well, there's some symbolism in all this, right, I mean

256
00:14:40,160 --> 00:14:44,240
Speaker 8: every incoming administration, for instance, puts a freeze on all

257
00:14:44,280 --> 00:14:48,160
Speaker 8: the new regulations that hadn't been implemented yet. That's just

258
00:14:48,200 --> 00:14:51,760
Speaker 8: like a standard operating procedure. Some of this is or

259
00:14:51,840 --> 00:14:54,880
Speaker 8: much of this might get challenged by the courts, will

260
00:14:54,920 --> 00:14:57,840
Speaker 8: get tied up in litigation. Some of it is more

261
00:14:57,880 --> 00:15:03,200
Speaker 8: symbolism than anything. So you got to remember the president.

262
00:15:03,200 --> 00:15:06,360
Speaker 8: I think he got his first cabinet secretary, Marco Rubio

263
00:15:06,760 --> 00:15:10,200
Speaker 8: was approved today. Most of his team is not approved.

264
00:15:10,200 --> 00:15:13,400
Speaker 8: Most of his team doesn't even have necessarily hearing scheduled.

265
00:15:13,520 --> 00:15:15,800
Speaker 8: I do think we're going to get the Treasury secretary

266
00:15:16,480 --> 00:15:19,360
Speaker 8: perhaps confirmed by the end of the week, but he

267
00:15:19,440 --> 00:15:24,880
Speaker 8: doesn't have his top cabinet leaders in office. Some of

268
00:15:24,920 --> 00:15:27,800
Speaker 8: that will take weeks, and so some of these policies

269
00:15:27,800 --> 00:15:30,360
Speaker 8: are really going to in terms of the flushing out

270
00:15:30,720 --> 00:15:33,080
Speaker 8: they are. That's going to take a little bit a while,

271
00:15:33,280 --> 00:15:37,520
Speaker 8: and you will see legal pushback. You already have seen

272
00:15:37,600 --> 00:15:40,040
Speaker 8: some legal pushback on these executive orders, but I think

273
00:15:40,080 --> 00:15:41,400
Speaker 8: there's going to be a lot more of that in

274
00:15:41,440 --> 00:15:42,200
Speaker 8: the days to come.

275
00:15:43,280 --> 00:15:45,920
Speaker 2: Okay, both airies, our senior editor, thank you very much.

276
00:15:46,200 --> 00:15:49,600
Speaker 1: Well, let's dig into the plans announced by Donald Trump.

277
00:15:49,680 --> 00:15:53,520
Speaker 1: They're being watched closely around the world. One notable emission

278
00:15:53,560 --> 00:15:56,760
Speaker 1: from his actions on trade he avoided committing to a

279
00:15:56,800 --> 00:16:00,440
Speaker 1: tariff plan on China joining US now is Blombergs Jenny Marsh,

280
00:16:00,480 --> 00:16:03,600
Speaker 1: who leads our coverage of the economy and government in China.

281
00:16:03,680 --> 00:16:06,560
Speaker 1: Good morning, Jenny. Why do you think that there was

282
00:16:06,640 --> 00:16:10,600
Speaker 1: no announcement immediately targeting China.

283
00:16:11,880 --> 00:16:14,040
Speaker 4: It's a very good question, and I guess one can

284
00:16:14,120 --> 00:16:18,000
Speaker 4: only speculate, but it did seem like Trump was really

285
00:16:18,040 --> 00:16:21,040
Speaker 4: sort of exerting some caution when it came to handling

286
00:16:21,040 --> 00:16:24,280
Speaker 4: the China relationship, particularly when you contrasted it with the

287
00:16:24,320 --> 00:16:28,000
Speaker 4: announcement on Mexico and Canada, and he sort of follows

288
00:16:28,080 --> 00:16:31,560
Speaker 4: through on the tariff threats there that he'd made during

289
00:16:31,560 --> 00:16:33,880
Speaker 4: the campaign trail, and you know, I think that just

290
00:16:33,920 --> 00:16:37,320
Speaker 4: goes to show what an important relationship it is with China.

291
00:16:37,680 --> 00:16:40,480
Speaker 4: It is the most important bilateral relationship in the world.

292
00:16:41,080 --> 00:16:43,320
Speaker 4: And I think, you know, Trump has fully established his

293
00:16:43,400 --> 00:16:46,600
Speaker 4: bargaining power on the campaign trail, and now you know,

294
00:16:46,640 --> 00:16:49,040
Speaker 4: he's signaled very clearly that he wants to have meetings

295
00:16:49,520 --> 00:16:52,840
Speaker 4: calls the President. She and he even talked about being

296
00:16:52,880 --> 00:16:55,760
Speaker 4: invited to Beijing for a trip, although he didn't say

297
00:16:55,760 --> 00:16:59,200
Speaker 4: whether or not he plans to accept that invitation. But

298
00:16:59,240 --> 00:17:02,080
Speaker 4: what he basically did was, you know, he offered a

299
00:17:02,080 --> 00:17:04,080
Speaker 4: bit of an olive branch and holding off from any

300
00:17:04,080 --> 00:17:07,239
Speaker 4: immediate action, but also set the stage for sort of

301
00:17:07,560 --> 00:17:10,359
Speaker 4: a long round of trade talks, which is something, of course,

302
00:17:11,119 --> 00:17:13,880
Speaker 4: Poltages on both sides of the relationship are very familiar

303
00:17:13,880 --> 00:17:15,160
Speaker 4: with from the first trade War.

304
00:17:16,720 --> 00:17:21,360
Speaker 2: So Donald Trump ordered a study into unfair trade practices

305
00:17:21,400 --> 00:17:24,879
Speaker 2: and how China has complied with existing deals. What do

306
00:17:24,960 --> 00:17:26,600
Speaker 2: we know about what that will involve.

307
00:17:28,119 --> 00:17:31,320
Speaker 4: They're basically gonna look back now to the Phase one

308
00:17:31,400 --> 00:17:34,120
Speaker 4: Trade deal, which is something that was sort of struck

309
00:17:34,640 --> 00:17:37,399
Speaker 4: during his first presidency, and when China pledged to buy,

310
00:17:38,520 --> 00:17:43,000
Speaker 4: you know, so many goods from the US and only

311
00:17:43,040 --> 00:17:46,359
Speaker 4: ever actually pledge, only actually follows through rather on sixty

312
00:17:46,400 --> 00:17:49,280
Speaker 4: three percent of the goods that it promised to buy.

313
00:17:49,800 --> 00:17:51,960
Speaker 4: The deal was struck, like right on the eve of

314
00:17:51,960 --> 00:17:55,200
Speaker 4: the pandemic. So Beijing said, you know that the shocks

315
00:17:55,200 --> 00:17:58,320
Speaker 4: from COVID sort of upended the conditions for it buying

316
00:17:58,400 --> 00:18:01,040
Speaker 4: those goods. But of course for Trump, you know, he

317
00:18:01,119 --> 00:18:03,760
Speaker 4: feels he's going to feel kind of wronged that Beijing

318
00:18:03,800 --> 00:18:06,200
Speaker 4: never went through on it. It's part of that deal.

319
00:18:06,320 --> 00:18:09,400
Speaker 4: So that's just sort of one part of it. They're

320
00:18:09,400 --> 00:18:11,560
Speaker 4: also going to look at the relationship more broadly. There

321
00:18:11,560 --> 00:18:17,360
Speaker 4: are bills going through Congress right now that are proposing

322
00:18:17,680 --> 00:18:20,600
Speaker 4: to revoke China's permanent normal trade relations with the US.

323
00:18:21,080 --> 00:18:23,800
Speaker 4: This something quite technical, but economists say that actually they

324
00:18:23,800 --> 00:18:27,320
Speaker 4: did revoke that status. That could be as impactful as

325
00:18:27,359 --> 00:18:30,920
Speaker 4: a sixty percent blanket tariff on China. Something to watch

326
00:18:31,040 --> 00:18:32,400
Speaker 4: very closely there as well.

327
00:18:33,200 --> 00:18:38,640
Speaker 1: Okay, so then in terms of specifics, Trump also did

328
00:18:38,680 --> 00:18:42,400
Speaker 1: seem to come out in favor of TikTok again sort

329
00:18:42,400 --> 00:18:43,120
Speaker 1: of more firmly.

330
00:18:44,680 --> 00:18:46,560
Speaker 4: Yeah, so there was sort of another kind of win

331
00:18:46,800 --> 00:18:49,239
Speaker 4: for she, if you like. But I don't know if

332
00:18:49,280 --> 00:18:51,760
Speaker 4: that was because Trump was trying to sort of be

333
00:18:51,880 --> 00:18:54,680
Speaker 4: more moderate with Beijing. He was talking a lot when

334
00:18:54,720 --> 00:18:57,359
Speaker 4: he was at the Oval Office, sort of fielding questions

335
00:18:57,359 --> 00:19:00,959
Speaker 4: from reporters about how can I with young people on

336
00:19:01,000 --> 00:19:04,360
Speaker 4: TikTok had helped him win the election, and how Republicans

337
00:19:04,359 --> 00:19:06,520
Speaker 4: can't normally sort of engage with that audience, but he

338
00:19:06,560 --> 00:19:09,400
Speaker 4: had managed you because of this platform. And that's really

339
00:19:09,400 --> 00:19:11,760
Speaker 4: what's changed his mind on TikTok, because obviously it was

340
00:19:11,800 --> 00:19:15,520
Speaker 4: Trump in his first presidency that suggested that TikTok should

341
00:19:15,520 --> 00:19:18,320
Speaker 4: be banned in the US. Now he's done a one eighty,

342
00:19:18,640 --> 00:19:21,439
Speaker 4: and he was talking about how he thinks it's a

343
00:19:21,440 --> 00:19:24,360
Speaker 4: great deal for China if they can go in this

344
00:19:24,480 --> 00:19:29,199
Speaker 4: joint venture, and he said that if China was to

345
00:19:29,240 --> 00:19:32,320
Speaker 4: reject that deal, he would consider it an actor facility.

346
00:19:32,359 --> 00:19:34,280
Speaker 4: And then he talked about tariffs as high as one

347
00:19:34,359 --> 00:19:38,639
Speaker 4: hundred percent on Beijing if they did reject this proposal

348
00:19:38,720 --> 00:19:40,440
Speaker 4: to split the ownership of TikTok.

349
00:19:42,080 --> 00:19:44,760
Speaker 2: What's been the reaction in China so far to the

350
00:19:44,800 --> 00:19:46,719
Speaker 2: measures announced by Donald Trump?

351
00:19:47,960 --> 00:19:52,679
Speaker 4: Pretty quiet, you know, I think going into this election,

352
00:19:52,840 --> 00:19:57,240
Speaker 4: the Chinese have been very cautious. You know, during the

353
00:19:57,280 --> 00:20:00,160
Speaker 4: first Trump era there was the wolf warrior approach, which

354
00:20:00,160 --> 00:20:03,720
Speaker 4: they realized now that was not helpful, and they've tried

355
00:20:03,880 --> 00:20:07,200
Speaker 4: very carefully trying not to escalate things. State media today

356
00:20:07,240 --> 00:20:09,800
Speaker 4: has been pretty quiet. They've got some sort of straight stories,

357
00:20:10,200 --> 00:20:13,240
Speaker 4: and any commentary has focused on Trump's sort of more

358
00:20:13,280 --> 00:20:16,240
Speaker 4: isolationist action, so trying to take the US out of

359
00:20:16,280 --> 00:20:19,280
Speaker 4: the Paris Accord and the World Health Organization, but not

360
00:20:19,359 --> 00:20:22,640
Speaker 4: really focusing on the fact they haven't been hit with tariffs.

361
00:20:23,280 --> 00:20:26,280
Speaker 4: Of course, the Foreign Ministry in Beijing or brief at

362
00:20:26,280 --> 00:20:28,679
Speaker 4: three pm to day it's always does, so we might

363
00:20:28,720 --> 00:20:31,399
Speaker 4: get some sort of official reaction to some of Trump's

364
00:20:31,440 --> 00:20:36,000
Speaker 4: moves today there, but also obviously Davos is happening at

365
00:20:36,000 --> 00:20:38,000
Speaker 4: the moment as well, and I think it's kind of

366
00:20:38,000 --> 00:20:41,200
Speaker 4: interesting that, you know, China has chosen to send Vice

367
00:20:41,240 --> 00:20:44,520
Speaker 4: premier ding Space Young to that, whereas in other years

368
00:20:44,600 --> 00:20:46,960
Speaker 4: she himself has attended. Last year it was Lee Chang.

369
00:20:47,320 --> 00:20:50,320
Speaker 4: They've chosen to put someone a little bit less high profile,

370
00:20:50,600 --> 00:20:52,040
Speaker 4: and they haven't put up one of their sort of

371
00:20:52,080 --> 00:20:55,440
Speaker 4: top leaders on a stage in front of executives one

372
00:20:55,520 --> 00:20:57,280
Speaker 4: day after Trump took office, and I think that kind

373
00:20:57,320 --> 00:20:59,680
Speaker 4: of signals they do want to sort of tamp down

374
00:21:00,600 --> 00:21:04,680
Speaker 4: attentions and sort of tread softly basically on this while

375
00:21:04,720 --> 00:21:05,120
Speaker 4: they can.

376
00:21:05,840 --> 00:21:08,560
Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

377
00:21:08,640 --> 00:21:11,680
Speaker 2: stories making news from London to Wall Street and beyond.

378
00:21:11,960 --> 00:21:15,920
Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,

379
00:21:16,040 --> 00:21:17,959
Speaker 1: and anywhere else you get your podcasts.

380
00:21:18,040 --> 00:21:21,040
Speaker 2: You can also listen live each morning on London DAB Radio,

381
00:21:21,080 --> 00:21:24,840
Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

382
00:21:24,880 --> 00:21:27,639
Speaker 1: Our flagship New York station is also available on your

383
00:21:27,680 --> 00:21:32,399
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

384
00:21:32,640 --> 00:21:35,280
Speaker 2: I'm Caroline Hipka and I'm Stephen Carroll. Join us again

385
00:21:35,320 --> 00:21:37,919
Speaker 2: tomorrow morning for all the news you need to start

386
00:21:37,960 --> 00:21:43,520
Speaker 2: your day right here on Bloomberg Daybreak Europe.