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

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Speaker 2: This is the Bloomberg Day BEQUT podcast. Good morning, It's Friday,

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Speaker 2: the seventeenth of October. I'm Caroline Hepget in London and.

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Speaker 3: I'm Stephen Caroline Brussels. Coming up today, Donald Trump undercuts

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Speaker 3: Ukraine's push for more weapons with plans for another summit

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Speaker 3: with Vladimir Putin.

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Speaker 2: Shares in US regional banks tumble as traders sell first

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Speaker 2: and ask questions later after two lenders say they were

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Speaker 2: victims of fraud.

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Speaker 3: Plus, Bloomberg's Michell Hussein joins us to discuss her new

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Speaker 3: show and the lessons Mark Carney has learned from watching

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Speaker 3: the US President.

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

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Speaker 3: US President Donald Trump says he will hold a second

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Speaker 3: meeting with Russian President Vladimir Putin within two weeks or so,

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Speaker 3: aimed at ending the war in Ukraine. The two leaders

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Speaker 3: agreed to meet in Budapest after a two hour phone

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Speaker 3: call yesterday. Trump Plater expressed optimism that the summit could

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Speaker 3: result in a ceasefire, even though the pair's August meeting

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Speaker 3: in Alaska failed to yield a result. He told reporters

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Speaker 3: in the Oval Office. The meeting had been positive.

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Speaker 4: I thought it was a very good phone call. I

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Speaker 4: thought very productive. But I'll be meeting with President Putin

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Speaker 4: and we'll make a determination.

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Speaker 3: Tomorrow.

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Speaker 4: I'm meeting with President Zelenski and I'll be telling her

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Speaker 4: about the call.

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Speaker 5: I mean, we have a problem.

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Speaker 4: They don't get along too well, those two, and it's

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Speaker 4: sometimes tough to have meetings. So we may do something

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Speaker 4: where we're separate, but separate but equal.

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Speaker 3: Trump's comments came ahead of that meeting with President Vladmir

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Speaker 3: Zelenski in the White House. The Ukrainian leader is hoping

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Speaker 3: to persuade Trump to allow his forces to use long

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Speaker 3: range American made Tomahawk missiles.

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Speaker 2: Now, President Trump's latest attempt at brokering peace comes as

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Speaker 2: Canada's Prime Minister Mark Karney has been speaking to bloom

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Speaker 2: Begg's Michelle hussaying he tells her NATO should keep all

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Speaker 2: options open if Russia violet it's its airspace, and do

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Speaker 2: what's necessary to protect the alliance. Karne says Russia's use

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Speaker 2: of jets and drones over European members of NATO should

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Speaker 2: be viewed as a sign of weakness, not strength.

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Speaker 6: Russia's under pressure. Russia's under pressure. They're trying what they

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Speaker 6: can to shift, but they're under economic pressure, their military situation.

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Speaker 6: They were making some progress over the course of the summer.

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Speaker 6: That progress has stopped.

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Speaker 2: The conversation with Karney came as Michell Hussein also spoke

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Speaker 2: to Nigel Farage, the leader of Britain's poll topping reform

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Speaker 2: UK Party. Varaj sought to ward off criticism that his

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Speaker 2: views on Moscow could threaten his bid to become Prime

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Speaker 2: Minister in the UK. He says that President Putin is irrational,

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Speaker 2: but begs that. Michelle Hasseayn asked Nigel Parage if he

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Speaker 2: would back shooting down Russian jets that enter NATO airspace.

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Speaker 1: So if you were Prime minister and NATO jets entered

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Speaker 1: Russian jets entered NATO airspace, where do you stand on legs?

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Speaker 1: Got to shoot them down, no questions whatever that does?

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Speaker 1: How as much that inflamed tention, love you needs to

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Speaker 1: be taught to listeners.

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Speaker 7: And love you trying ever so hard. I'm the only

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Speaker 7: person in the world I think that's stood up in

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Speaker 7: the European Parliament in twenty fourteen, and do you know

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Speaker 7: what I said? There will be a war in Ukraine.

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Speaker 7: It's coming. I'm the only person that got it right.

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Speaker 2: And you can hear all of Michelle's latest interviews. Just

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Speaker 2: listen and to subscribe to The Michelle Hussein Show from

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Speaker 2: Bloomberg Weekend wherever you get your podcasts.

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Speaker 3: Shares of two regional banks in the United States tumbled

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Speaker 3: after they said they were victims of fraud on loans

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Speaker 3: to funds that invest in distressed commercial mortgages. Shares in

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Speaker 3: Zion sank thirteen percent and by eleven percent for Western Alliance.

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Speaker 3: That helped send the KBW Bank index down by the

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Speaker 3: most in six months. They selloff adds to other recent

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Speaker 3: loan blow ups such as at subprime auto lender Tricolor

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Speaker 3: Holding and auto parts maker First Brands Group. Bloomberg's Sally

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Speaker 3: Bakewell referenced JP Morgan CEO Jamie Diamond's warning that those

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Speaker 3: recent bankruptcies could signal more credit problems could emerge.

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Speaker 8: Diamond said, you know, when you see one cockroach, there

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Speaker 8: are probably more. And actually, the news that both Zions

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Speaker 8: and Western Alliance are dealing with problematic loans amid fraud

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Speaker 8: alegations shows that Diamond was probably right.

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Speaker 3: Bloomberg Sally Bakewell speaking there as, analysts say the losses

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Speaker 3: from loans are manageable for large lenders, but more troubling

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Speaker 3: for smaller banks.

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Speaker 2: Bbva's sixteen billion euro bid for Banco Sabadel has failed

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Speaker 2: after nearly three quarters of shareholders rejected the offer. Investors

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Speaker 2: offered slightly above a quarter of Sabadel's voting rights, that

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Speaker 2: was well short of the thirty percent threshold BBVA needed

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Speaker 2: to be able to move forwards, according to Spain's markets regulator.

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Speaker 2: Now the result ends a takeover saga that has been

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Speaker 2: going on for seventeen months. It's a major setback to

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Speaker 2: bbva's chairman, Carlos Torres, whose first takeover attempt of Sabadel

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Speaker 2: five years ago also fell apart. A deal would have

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Speaker 2: created a domestic banking jant to rival Santander and helped

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Speaker 2: BBVA balance out its reliance on Mexico, Latin America and Turkey.

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Speaker 3: Donald Trump's former national security advisor, John Bolton, has been

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Speaker 3: indicted over claims he mishandled classified documents. He was charged

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Speaker 3: with eighteen counts by a federal grand jury in Maryland,

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Speaker 3: and federal prosecutors secured an arrest warrant. Bolton has previously

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Speaker 3: denied mishandling classified information. Our White House correspondent Kate Sullivan

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Speaker 3: says this is the latest in a series of similar rulings.

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Speaker 9: This indictment comes, you know, just weeks after indictments against

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Speaker 9: Jim Comey and Lantitia James. After Comy was indicted, Trump

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Speaker 9: suggested that there were more people his administration were targeting,

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Speaker 9: clearly part of a retribution campaign that Trump has been

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Speaker 9: signaling for a long time now.

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Speaker 3: Ri's Kate Sullivan their Trump Child reporters on Thursday that

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Speaker 3: he hadn't reviewed the case against Bolton, but described his

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Speaker 3: former advisor as a bad person now.

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Speaker 2: The White House is also preparing to ease auto industry

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Speaker 2: tariffs after lobbying from carmakers, and expected five year extension

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Speaker 2: allowing manufacturers to reduce what they pay in levies for

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Speaker 2: imported car parts could be announced as soon as today

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Speaker 2: by the Commerce Department. The news comes as President Trump

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Speaker 2: and outs a deal with Germany's MERK to cut the

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Speaker 2: price of its fertility medicines in exchange for relief from

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Speaker 2: threatened tariffs. The discount was slash more than two thousand

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Speaker 2: dollars from the cost of that treatment. So those are

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

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Speaker 2: terms of the markets today, So the worries around lending

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Speaker 2: standards really impacting markets. The MSCI Asia Pacific Index this

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Speaker 2: morning is down by eight tenths of one percent. Financial

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Speaker 2: companies amongst the biggest losers. European stock futures are also

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Speaker 2: down significantly, selling off by nine tenths of one percent.

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Speaker 2: US DOC futures also in the red. Investors seeking the

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Speaker 2: safe haven of government bonds. Ten year US treasury yields

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Speaker 2: are now below four percent. Gold, though is it another

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Speaker 2: record high, along with other precious metals, and a gauge

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Speaker 2: of the dollar set for its worst week since late July,

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Speaker 2: so the Boom Big Dollar Spot index is down a

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Speaker 2: tenth of one percent this morning.

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Speaker 3: In a moment, we'll bring you more on Donald Trump's

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Speaker 3: plan to meet Vladimir Putin in Hungary, while we'll also

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Speaker 3: be speaking to Michelle Hussein to discuss her interviews with

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Speaker 3: Night with Mark Karney and Nigel Farage. But another story

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Speaker 3: that we've been reading this morning, a bit of Friday

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Speaker 3: morning nostalgia from our UK Pursuedes correspondent Sarah Rappaporsch. She's

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Speaker 3: been writing about how the love of the nineties is

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Speaker 3: apparently everywhere now, not just Oasis doing a reunion tour,

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Speaker 3: but it's turning up in art, it's turning up in

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Speaker 3: fashion as well, and it's something that is, you know,

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Speaker 3: seems to be catching a bit of attention.

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Speaker 1: Yeah.

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Speaker 2: Absolutely, look visiting all things nineties, Sarah talking about authors

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Speaker 2: and commentators pinpointing the nineties as being special because it

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Speaker 2: was the end of the analog age, basically before the

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Speaker 2: Internet took cold. So I really like that thought. I mean,

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Speaker 2: only a few months ago I went to see the

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Speaker 2: retrospective of the Face magazine. Do you remember that one?

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Speaker 2: It was at the National Portrait Gallery that was in Spring.

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Speaker 2: I did think it was amazing. I took away from

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Speaker 2: it though, that they rather recast the magazine's legacy with

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Speaker 2: a big focus on kind of what is happening today, diversity,

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Speaker 2: outing inclusion, championing women in diversity, which I think is

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Speaker 2: also comes with a bit of a warning you're seeing

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Speaker 2: the nineties through today's lens.

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Speaker 3: Well, of course, while you were at a highbrow art exhibition,

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Speaker 3: I went to see the Corps and Natalie and Brulia

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Speaker 3: in my nineties really in tour, and I was also

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Speaker 3: very pleased by that, I have to say, But I mean,

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Speaker 3: one of the things that Sarah picks up from our

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Speaker 3: interviews for this article as well is the trend of

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Speaker 3: parents installing landlines for their teenagers rather than having access

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Speaker 3: to smartphones. Have you did anyone doing this?

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Speaker 2: No, I've heard of brick phones, but no, no, no.

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Speaker 2: Landlines are definitely not coming back. But yeah, nice try.

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Speaker 4: Yeah, all right.

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Speaker 3: You can read Serious Peace on Bloomberg dot com. I'll

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Speaker 3: put a link to it in our podcast show notes

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Speaker 3: as well.

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Speaker 2: Now let's bring you more on our top story, Donald

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Speaker 2: Trump announcing another meeting with Vlasimir Putin, this time in

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Speaker 2: bit of pest, aims at ending the war in Ukraine.

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Speaker 2: Tony Halpin, who leads Bimberg's team covering Russia, joins us

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Speaker 2: now for more. Tony, good morning. What do we know

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Speaker 2: about the plan for this meeting? It looks like a

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Speaker 2: growing rapushma, a willingness to talk again and again to Putin.

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Speaker 2: What could it achieve?

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Speaker 5: Yes, good morning. Well, so far we know that Trump

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Speaker 5: says he plans to meet with Putin in a couple

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Speaker 5: of weeks or so, and that they'll have preparatory talks

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Speaker 5: involving high level officials next week. As you note, Trump

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Speaker 5: and Putin are increasingly talking to each other. They met

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Speaker 5: in August in Alaska. They've had, according to the Kremlin,

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Speaker 5: eight phone calls so far, but it hasn't really produced

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Speaker 5: very much in terms of pressure on Russia to end

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Speaker 5: its war, and in fact, you could say that it's

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Speaker 5: part of a Russian strategy really to engage with Trump

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Speaker 5: at moments where they see that there may be a

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Speaker 5: prospect of increased US pressure in terms of sanctions or

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Speaker 5: willingness to send weapons to Ukraine, and that seems to

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Speaker 5: be the case this time as well.

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Speaker 3: But has anything's changed since the leaders last met in Alaska.

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Speaker 5: No, very little. I mean, I think people came away

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Speaker 5: from the Alaska summit with the view that Putin had

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Speaker 5: got a win because he traveled to US soil and

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Speaker 5: had his first summit meeting with Trump of the US

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Speaker 5: president's second term. But there was nothing really concrete that

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Speaker 5: came out to bring an end to the violence, and

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Speaker 5: in fact, Russia stepped up its bombardment of Ukraine after

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Speaker 5: that summit meeting. So it's a big question really whether

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Speaker 5: Budapest will produce something different.

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Speaker 2: What do you think the development means for Ukraine? We

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Speaker 2: have of coused President Zelenski, who's meeting President Trump today.

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Speaker 5: Yes, and this I think is is part of the

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Speaker 5: timing of the call from the Kremlin's point of view.

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Speaker 5: And Zelenski has come to Washington with a shopping list

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Speaker 5: of asks really in terms of weapons, air defense weapons

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Speaker 5: in particular, an offer to cooperate with the US on

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Speaker 5: things like drone production. But also there was a lot

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Speaker 5: of talk about the US supplying Tomahawk missiles to Ukraine,

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Speaker 5: and that was an issue that came up in yesterday's

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Speaker 5: talks between Trump and Putin, and Trump made clear that

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Speaker 5: Putin didn't like the idea, and he himself began to

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Speaker 5: sort of row back from it, saying that the US

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Speaker 5: also needed its supplies of tomahawks. So in that respect,

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Speaker 5: I think the Kremlin was very focus on putting some

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Speaker 5: doubt in the US minds about the willingness and wisdom

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Speaker 5: of giving tomahawks to Ukraine.

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Speaker 3: Tony, what's the significance of Budapest as the location for

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Speaker 3: this meeting.

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Speaker 5: Yes, it's a very interesting one. Let's not forget that

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Speaker 5: the Hungarian leader Victor Auburn has been the most Kremlin

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Speaker 5: friendly of leaders in the European Union. But from a

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Speaker 5: Russian perspective, you know, Hungary is in the EU, it's

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Speaker 5: also in NATO. Putin is very concerned for his security

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Speaker 5: and has been quite reluctant to engage with what Russians

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Speaker 5: considered to be enemy territory. And there's a simple practical

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Speaker 5: difficulty that the EU has closed its airspace to Russian

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Speaker 5: aircraft and Russian leaders since the start of the war.

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Speaker 5: So that immediately makes it somewhat difficult for Brussels because

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Speaker 5: they're going to have to comply with the request to

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Speaker 5: open up the airspace and Putin's going to land in

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Speaker 5: Europe while the war is still going on. That from

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Speaker 5: the Brussels point of view doesn't look very good. From

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Speaker 5: Victor Auburn's point of view, it's a win because he's

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Speaker 5: very often at odds with the majority of his fellow

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Speaker 5: members in the EU about policy towards Russian and he'll

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Speaker 5: be able to say, well, look here i am hosting

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Speaker 5: Trump and puting for peace talks.

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Speaker 2: Yeah, absolutely, Tony, thank you so much for being with

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Speaker 2: us and updating us. Tony Halpin, who leads Bloomberg's team

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Speaker 2: covering Russia. Thank you, stay with us. More from Bloomberg

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Speaker 2: Dabaqube coming up after this.

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Speaker 3: There a former UK leader Nigel Faraj, has criticized Vladimir

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Speaker 3: Putin as irrational and back to shooting down Russian jets

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Speaker 3: that enter NATO airspace. He's been speaking to Bloomberg for

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Speaker 3: the Michelle Hussein show and shall joins us now from More. Michelle,

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Speaker 3: good morning, great to have you with us. You were

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Speaker 3: speaking to Nigel Farag at this key time given the

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Speaker 3: news of the Trump Putin meeting put in context for

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Speaker 3: us how big a change is this in Nigel Faraj's

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Speaker 3: position towards Russia.

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Speaker 1: What we've released is a little preview out of what

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Speaker 1: Nigel Farrar says me for a forthcoming episode of the podcast,

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Speaker 1: And essentially this is a significant change of tone. It's

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Speaker 1: a hardening of tone. He is someone who's leading in

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Speaker 1: the polls and therefore if there was an election today

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Speaker 1: he would be likely to become prime minister. He's always

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Speaker 1: been dogged by these questions of once having said that

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Speaker 1: he admires Putin. He said he was only speaking about

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Speaker 1: that in very narrow terms. But he's also said previously

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Speaker 1: that he thinks that Putin was provoked to the war

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Speaker 1: in Ukraine. So now the fact that he is talking

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Speaker 1: about shooting down Russian jets if they're in NATO air space,

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Speaker 1: and the fact that he thinks Putin is a very

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Speaker 1: bad dude, this is significant. And it's interesting that he

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Speaker 1: also said to me he does believe that Donald Trump

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Speaker 1: is going to start supplying Tomahawk missiles to Ukraine in

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Speaker 1: the coming months. That's, as you said, something that Trump

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Speaker 1: says he's still thinking about but deliberating on.

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Speaker 2: Yeah. I think it's a really interesting line that you

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Speaker 2: got from Nigel Farage, and I suppose to say, as

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Speaker 2: it goes to these questions about the type of strong

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Speaker 2: man politics that we're seeing really in so many places.

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Speaker 2: So I think that is fascinating in terms of the

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Speaker 2: conversation then that you had with a Canadian Prime minister,

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Speaker 2: and Mark Carney obviously we know him well here in

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Speaker 2: the UK. He's really turned around the fortunes of Canada's

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Speaker 2: Liberal Party in order to win that general election that

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Speaker 2: surprised so many people at the time. He has had

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Speaker 2: to deal with Donald Trump, perhaps even to thank him

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Speaker 2: for that win. How does he feel about the UN

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Speaker 2: isn't that well?

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Speaker 1: I asked him exactly that, and he's very clear about

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Speaker 1: you know, he saw a gap in leadership, he stepped

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Speaker 1: in and Canada chose him, rather than he's got anything

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Speaker 1: to thank President Trump for. I think the link between

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Speaker 1: the two conversations is that when you talk to people

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Speaker 1: at length, these are forty minute conversations, you can hear

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Speaker 1: the whole of the Mark Carney one, and if you

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Speaker 1: subscribe you'll get the Nigel Farash one as soon as

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Speaker 1: it's released. But because you have that kind of time,

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Speaker 1: you can get into the personal side of it as

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Speaker 1: well as the political and the issue side of it.

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Speaker 1: And let's be clear, Mark Carney is dealing with having

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Speaker 1: to transform Canada's economy. Three quarters of its exports currently

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Speaker 1: currently go to its southern neighbor. He wants to export

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Speaker 1: more east and west. He wants to make supply chains

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Speaker 1: much more self sufficient. So there's a big economic transformation

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Speaker 1: that is beginning. But on the personal side, I did

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Speaker 1: ask him whether he had learned anything from President Trump,

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Speaker 1: and this is what he said.

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Speaker 6: We always learned things from people. I've learned that the

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Speaker 6: value I don't fully subscrib to this, but I see

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Speaker 6: the effectiveness. The value of the term they would use

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Speaker 6: is flooding the zone, of doing multiple things at the

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Speaker 6: same time, and the effectiveness that can have. I think

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Speaker 6: that he has a very effective way in his own

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Speaker 6: almost unique manner of framing issues and of dominating the agenda.

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Speaker 6: If I can put that away as well.

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Speaker 1: So there you have it. Trump has communicated Trump as

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Speaker 1: I mean, Cantie use the term flooding the zone. So

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Speaker 1: I think I think that's the kind of scope there

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Speaker 1: is in this conversation that we do pivot from the

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Speaker 1: personal to the much tougher aspects of this. But of

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Speaker 1: course even the personal is quite tricky because leaders like

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Speaker 1: Carnie have to be a little careful in what they

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Speaker 1: say about what they might have learned from someone like

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Speaker 1: Donald Trump.

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Speaker 3: Well, speaking of one of the bigger issues that you

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Speaker 3: got into in that conversation with Mark Carney, climates. Mark

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Speaker 3: Karney a former UN Climate envoid now running a country

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Speaker 3: that's the major fossil fuel producer. How does he balance

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Speaker 3: those two things?

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Speaker 1: I was really interested in this, Stephen, because the last

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Speaker 1: time that I spoke on air to Mark Carney was

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Speaker 1: at the Glasgow Climate Conference and he was a UN

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Speaker 1: envoy on climate action and now he is leading a

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Speaker 1: major oil and gas producing economy. So I asked him

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Speaker 1: about the fact that he canceled a consumer carbon tax

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Speaker 1: on day one of being in office. And there's also

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Speaker 1: a big debate in Canada about the future of the

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Speaker 1: oil and gas industry and about an emissions cap that

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Speaker 1: was planned and whether it's still going to come in.

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Speaker 1: And essentially he acknowledges in a way that you do

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Speaker 1: see things in a slightly different way from these two

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Speaker 1: vantage points, but he emphasizes the words he uses is

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Speaker 1: I'm still that guy, because we play him in the

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Speaker 1: podcast a bit of how he has spoken before about

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Speaker 1: the tragedy of the horizon, how short term thinking is

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Speaker 1: is what affects action on climate change. So there is

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Speaker 1: an interesting contrast. And I think as the podcast goes

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Speaker 1: on and we speak to people who have had different

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Speaker 1: roles in their times, this is probably a theme we'll

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Speaker 1: come back to. How does the world? How do things

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Speaker 1: look different?

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Speaker 2: And I love that, you know, going to that point,

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Speaker 2: you're written pieces. Your interviews have that lovely clever trick

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Speaker 2: where you get to add and annotate what the interview

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Speaker 2: has to say and refer back to things. If you

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Speaker 2: read Michelle Hussein's you know, as I say, the long

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Speaker 2: form essays that you put out for the weekend.

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Speaker 1: For Bloomberg subscribers and often actually Caroline also you'll see

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Speaker 1: what I was thinking. Sometimes I'm saying this is why

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Speaker 1: I asked this question, or this is how I felt

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Speaker 1: when they answered the question in this way, or we

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Speaker 1: were coming at this from two very different advantage points.

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Speaker 1: So it is, yes, if you look at the tech

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Speaker 1: side of the Q and A, then you will get

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Speaker 1: you will get a different kind of insight.

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Speaker 2: But now we're not getting a little technical and of

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Speaker 2: course because it's in the podcast, what else are we

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Speaker 2: going to be hearing about then in future episodes? I mean,

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Speaker 2: if it teased us beautifully with a larger Farage already interview.

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Speaker 1: Well, what I would say is that while these first

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Speaker 1: two mark Carney and next week this time next week,

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Speaker 1: the Nigel Farah episode will be released in full on

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Speaker 1: the Michelle Who's Saying show, These two people are newspakers,

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Speaker 1: they're political figures. But this podcast is absolutely going to

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Speaker 1: be a place for ideas and culture. So we have

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Speaker 1: got writers coming up We've got thinkers coming up, and

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Speaker 1: I do feel that in this very tricky world in

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Speaker 1: so many ways where we have an overload of information.

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Speaker 1: Because this is a weekend listen, I hope that this

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Speaker 1: is going to be a place where people can step

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Speaker 1: back and make sense of the week or an issue

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Speaker 1: more widely and be a bit more reflective. Yeah, but

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Speaker 1: I think that sounds lovely. I'm getting ready. It's a

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Speaker 1: perfect compliment to Europe day Break.

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Speaker 2: Oh, Michelle lovely. It's so nice to see you and

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Speaker 2: really great to hear all of these conversations. How to

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Speaker 2: speak to you in person. Thank you so much for

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Speaker 2: coming in.

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Speaker 1: Well.

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Speaker 2: Of course you can listen to the full conversations between

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Speaker 2: Michelle has Saying and the Canadian Prime Minister and Mark Carney.

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Speaker 2: Just search the Michelle hasseayin show wherever you get your podcasts,

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Speaker 2: and we will put a link to it in our

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Speaker 2: show notes.

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Speaker 3: This is Bloomberg Daybreak Europe. You're Morning Brief the stories

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Speaker 3: making news from London to Wall Street and beyond.

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Speaker 2: Spotify and anywhere else you get your podcasts.

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Speaker 3: You can also listen live each morning on London DAB Radio,

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Speaker 3: the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 2: Our flagship New York station, is also available on your

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Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

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Speaker 2: I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carol. Join us again tomorrow morning for all

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Speaker 3: the news you need to start your day right here

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Speaker 3: on Bloomberg Daybreak Europe