1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:10,160 --> 00:00:13,440 Speaker 2: This is the Bloomberg Day VAC podcast. Good morning, It's Tuesday, 3 00:00:13,480 --> 00:00:16,520 Speaker 2: the thirteenth of January. I'm Caroline Hepkat in London and 4 00:00:16,520 --> 00:00:20,160 Speaker 2: I'm Stephen Caroline Brussels. Coming up today, Republican senators in 5 00:00:20,200 --> 00:00:24,040 Speaker 2: the United States joined former FED policymakers in pushing back 6 00:00:24,079 --> 00:00:28,400 Speaker 2: against the criminal investigation into Jerome Powell. More Iranian protesters 7 00:00:28,440 --> 00:00:31,320 Speaker 2: are killed as Trump vows to hit the country's trading 8 00:00:31,360 --> 00:00:33,360 Speaker 2: partners with a twenty five percent. 9 00:00:33,159 --> 00:00:35,599 Speaker 3: Tariff plus an X rated reckoning. 10 00:00:35,640 --> 00:00:39,000 Speaker 4: The UK vows to enforce the law over sexualized images 11 00:00:39,080 --> 00:00:42,120 Speaker 4: generated by Elon Musk's AI chatbot Grock. 12 00:00:42,560 --> 00:00:44,680 Speaker 2: Let's start with a roundup of our top stories. 13 00:00:45,040 --> 00:00:48,200 Speaker 4: US President Donald Trump is facing growing opposition from key 14 00:00:48,240 --> 00:00:52,640 Speaker 4: Republican lawmakers and former FED officials over a criminal investigation 15 00:00:52,760 --> 00:00:56,720 Speaker 4: into Chair Jerome Powell. Senate Majority leader John Thune says 16 00:00:56,800 --> 00:00:59,320 Speaker 4: the threat of a legal battle with the Central Bank 17 00:00:59,520 --> 00:01:04,399 Speaker 4: could make confirming FED nominees challenging. Meanwhile, Bloomberg understands Trump 18 00:01:04,480 --> 00:01:08,160 Speaker 4: allies or worried the investigation could discourage Powell from leaving 19 00:01:08,200 --> 00:01:11,000 Speaker 4: the board once his term as chair ends in May. 20 00:01:11,400 --> 00:01:13,679 Speaker 4: He could stay on as a FED governor until twenty 21 00:01:13,760 --> 00:01:16,880 Speaker 4: twenty eight. Here's former FED Governor Betsy Duke. 22 00:01:17,560 --> 00:01:21,559 Speaker 5: It's hard for me to see Jpewell leaving the FED board, 23 00:01:21,640 --> 00:01:26,320 Speaker 5: leaving his seat unoccupied and started to appointment to somebody 24 00:01:26,120 --> 00:01:30,240 Speaker 5: that he may not have confidence and while particularly while 25 00:01:30,280 --> 00:01:31,640 Speaker 5: this lawsuit is going on. 26 00:01:31,840 --> 00:01:34,520 Speaker 4: Betty Duke, speaking as the US Attorney for the District 27 00:01:34,560 --> 00:01:38,000 Speaker 4: of Columbia, Janine Piro, revealed that she did not seek 28 00:01:38,080 --> 00:01:40,960 Speaker 4: sign off from her bosses at the US Justice Department 29 00:01:41,240 --> 00:01:44,320 Speaker 4: before issuing a subpoena to the FED. In a post 30 00:01:44,360 --> 00:01:47,440 Speaker 4: on x, the former Fox News host says she also 31 00:01:47,560 --> 00:01:51,360 Speaker 4: has no plans to back down from the investigation into Powell. 32 00:01:51,480 --> 00:01:54,480 Speaker 2: Now, countries doing business with Iran will face a twenty 33 00:01:54,520 --> 00:01:57,640 Speaker 2: five percent tariff on their goods, according to the US President. 34 00:01:57,760 --> 00:02:00,520 Speaker 2: Writing on social media, Trump said that the new duty 35 00:02:00,760 --> 00:02:05,600 Speaker 2: would be effective immediately. Iran's largest trading partners include China, India, 36 00:02:05,600 --> 00:02:08,440 Speaker 2: and Turkey. However, it's not yet clear if the US 37 00:02:08,560 --> 00:02:12,000 Speaker 2: levees would be in addition to current charges. The US 38 00:02:12,040 --> 00:02:14,800 Speaker 2: has already imposed levies as high as fifty percent on 39 00:02:14,960 --> 00:02:18,680 Speaker 2: Indian goods tied to their purchase of Russian oil. Meanwhile, 40 00:02:18,680 --> 00:02:22,440 Speaker 2: an additional twenty five percent tarif on China misks, upsetting 41 00:02:22,480 --> 00:02:27,000 Speaker 2: the trade truth that Trump negotiated with Jijingping last year. 42 00:02:27,840 --> 00:02:30,960 Speaker 4: The threat of new American tariffs come as activists say 43 00:02:31,040 --> 00:02:33,720 Speaker 4: more than six hundred and forty people have so far 44 00:02:33,800 --> 00:02:37,600 Speaker 4: been killed in a crackdown on Iranian protesters. A White 45 00:02:37,639 --> 00:02:40,760 Speaker 4: House official told Bloomberg over the weekend that President Trump 46 00:02:40,800 --> 00:02:43,800 Speaker 4: had been briefed on a range of options from military 47 00:02:43,840 --> 00:02:48,160 Speaker 4: strikes in Iran, including non military sites. According to the official, 48 00:02:48,200 --> 00:02:53,240 Speaker 4: the president is seriously considering authorizing an attack. Speaking yesterday, 49 00:02:53,280 --> 00:02:55,840 Speaker 4: White House Press Secretary Carolyn Levitt, so the use of 50 00:02:55,919 --> 00:02:58,480 Speaker 4: military power in Iran remains an option. 51 00:02:58,880 --> 00:03:01,639 Speaker 6: One being President Trump is very good at is always 52 00:03:01,680 --> 00:03:03,600 Speaker 6: keeping all of his options on the table, and air 53 00:03:03,680 --> 00:03:06,120 Speaker 6: stripes would be one of the many, many options that 54 00:03:06,160 --> 00:03:08,720 Speaker 6: are on the table. Diplomacy is always the first option 55 00:03:08,800 --> 00:03:11,639 Speaker 6: for the president. What you're hearing publicly from the Iranian 56 00:03:11,680 --> 00:03:15,919 Speaker 6: regimes quite differently from the messages the administration is receiving privately. 57 00:03:16,360 --> 00:03:19,240 Speaker 4: Karl I Lovett also confirmed that an Iranian government official 58 00:03:19,240 --> 00:03:22,280 Speaker 4: at contact with the President's Middle East end voice, Steve Whitkoff, 59 00:03:22,680 --> 00:03:25,800 Speaker 4: those comments come after Iran's foreign minister said on Monday 60 00:03:26,000 --> 00:03:29,760 Speaker 4: that security forces have full control of the country following 61 00:03:29,800 --> 00:03:31,120 Speaker 4: weeks of violent unrest. 62 00:03:31,960 --> 00:03:36,160 Speaker 2: Japan's Prime Minister Sana takh is reportedly planning to call 63 00:03:36,280 --> 00:03:39,520 Speaker 2: a snap election. The Japanese yen has dropped to its 64 00:03:39,560 --> 00:03:42,160 Speaker 2: weakest level against the dollar in more than a year. 65 00:03:42,240 --> 00:03:46,600 Speaker 2: On the story reported by Kyodo News, Bloomberg's Bryan Fowlers 66 00:03:46,640 --> 00:03:49,000 Speaker 2: says it would be a high stakes gamble. 67 00:03:49,640 --> 00:03:53,560 Speaker 1: He's got stronger support than I think I've ever seen 68 00:03:53,600 --> 00:03:56,480 Speaker 1: in my lifetime for a Japanese prime minister, so that's 69 00:03:56,520 --> 00:03:59,040 Speaker 1: looking good. On the other hand, the oldp as A 70 00:03:59,080 --> 00:04:02,400 Speaker 1: party has not quite as well in surveys. People are 71 00:04:02,440 --> 00:04:06,120 Speaker 1: feel a little bit unforgiving towards pass scandals in the party, 72 00:04:06,680 --> 00:04:09,960 Speaker 1: and more importantly, or at least as important, the ruling 73 00:04:09,960 --> 00:04:13,400 Speaker 1: coalition now is different from it what it was in 74 00:04:13,520 --> 00:04:14,400 Speaker 1: past elections. 75 00:04:14,920 --> 00:04:19,920 Speaker 2: Bloomberg's editor for Northeast Asia Government's Brian Fowler speaking their 76 00:04:20,000 --> 00:04:24,719 Speaker 2: Techichi recently and currently benefits to form a seventy percent 77 00:04:24,880 --> 00:04:29,120 Speaker 2: approval rating, so many expect a vote could increase her 78 00:04:29,480 --> 00:04:30,240 Speaker 2: her mandates. 79 00:04:31,120 --> 00:04:34,920 Speaker 4: The CEO of UBS, Sergio or Marty, says banking reforms 80 00:04:34,960 --> 00:04:38,520 Speaker 4: in Switzerland are going too far and have become politicized. 81 00:04:38,839 --> 00:04:41,359 Speaker 4: The Swiss government wants to impose as much as twenty 82 00:04:41,400 --> 00:04:45,240 Speaker 4: six billion dollars of new capital requirements on UBS or. 83 00:04:45,279 --> 00:04:48,080 Speaker 4: Marty's Bank has said the planned reforms are a threat 84 00:04:48,080 --> 00:04:52,239 Speaker 4: to Switzerland's economy and its own business model. We fully 85 00:04:52,320 --> 00:04:56,159 Speaker 4: understand the necessity of taking the lessons learn right what 86 00:04:56,240 --> 00:04:59,080 Speaker 4: happened at Pretty Swiss, but we believe that the current 87 00:04:59,080 --> 00:05:03,280 Speaker 4: proposal are not really reflecting what happened, refer issues and 88 00:05:03,800 --> 00:05:08,440 Speaker 4: are going to farm and therefore we are contributing in end. 89 00:05:08,320 --> 00:05:11,360 Speaker 3: The debate with our views on the matter. But this 90 00:05:11,440 --> 00:05:12,960 Speaker 3: is in our political process. 91 00:05:13,160 --> 00:05:16,520 Speaker 4: UBS CEO Sogio Ramati, speaking to Bloomberg there in Shanghai. 92 00:05:16,680 --> 00:05:19,760 Speaker 4: The Financial Times meanwhile as reporting that Aramati is planning 93 00:05:19,839 --> 00:05:24,039 Speaker 4: to step down in April twenty twenty seven, citing unnamed people. 94 00:05:24,480 --> 00:05:27,880 Speaker 4: The CEO led ubs as it became a finance behemoth 95 00:05:28,040 --> 00:05:32,200 Speaker 4: after absorbing its national rival Credit Suisse in twenty twenty three, 96 00:05:32,680 --> 00:05:35,440 Speaker 4: but Credit Swiss has collapsed and ubs as size has 97 00:05:35,520 --> 00:05:39,120 Speaker 4: led to Swiss lawmakers concerned about the financial risk the 98 00:05:39,160 --> 00:05:40,120 Speaker 4: bank could pose. 99 00:05:40,600 --> 00:05:43,760 Speaker 2: A court in Paris will begin in hearing today Marine 100 00:05:43,880 --> 00:05:48,520 Speaker 2: le Pen's appeal over her embezzlement conviction, which may prevent 101 00:05:48,560 --> 00:05:53,120 Speaker 2: her from running in next year's French presidential election. Last March, 102 00:05:53,279 --> 00:05:55,599 Speaker 2: the far right leader and other members of her National 103 00:05:55,680 --> 00:05:58,520 Speaker 2: Rally party were found to have misused over four million 104 00:05:58,600 --> 00:06:02,360 Speaker 2: euros of EU five. Leapen was handed down a two 105 00:06:02,400 --> 00:06:05,800 Speaker 2: year suspended prison sentence andday five year ban on running 106 00:06:05,800 --> 00:06:09,760 Speaker 2: for public office, which came into effect immediately. A decision 107 00:06:09,800 --> 00:06:12,760 Speaker 2: from the Paris Court of Appeal is expected by this summer. 108 00:06:12,839 --> 00:06:16,039 Speaker 2: If she wins, she would then be eligible to run 109 00:06:16,080 --> 00:06:19,240 Speaker 2: in next year's election. If she loses, the National Rally 110 00:06:19,279 --> 00:06:22,640 Speaker 2: is expected to field thirty year old Jordan Bardella as 111 00:06:22,720 --> 00:06:25,280 Speaker 2: its presidential candidate, and the. 112 00:06:25,240 --> 00:06:29,239 Speaker 4: BBC has signaled some of its defenses against President Donald 113 00:06:29,279 --> 00:06:32,560 Speaker 4: Trump's ten billion dollar defamation last leader at a court 114 00:06:33,000 --> 00:06:36,080 Speaker 4: in Florida. Bloomberg's Ewan Parts has the details. 115 00:06:36,440 --> 00:06:38,839 Speaker 7: The BBC is sold a federal judge in Miami that 116 00:06:38,920 --> 00:06:42,560 Speaker 7: the Panorama documentary at the center of Trump's defamation case 117 00:06:42,880 --> 00:06:46,599 Speaker 7: was fair, despite a misleading edit of one segment. The 118 00:06:46,640 --> 00:06:49,640 Speaker 7: broadcaster asked the judge to pause the exchange of evidence 119 00:06:49,720 --> 00:06:52,680 Speaker 7: until the rulings issued on the BBC's motion to dismiss 120 00:06:52,720 --> 00:06:55,719 Speaker 7: the case that's due in March. The BBC also said 121 00:06:55,720 --> 00:06:58,119 Speaker 7: he wants to move the case to New York because 122 00:06:58,120 --> 00:07:00,320 Speaker 7: the claim relates to a documentary that it who just 123 00:07:00,360 --> 00:07:03,200 Speaker 7: did not create in Florida, produce in Florida or air 124 00:07:03,279 --> 00:07:06,239 Speaker 7: in Florida In London, I'm youune pots to Bloomberg Radio. 125 00:07:06,440 --> 00:07:08,640 Speaker 2: Those are our top stories for you this morning. Let's 126 00:07:08,680 --> 00:07:11,400 Speaker 2: look at the markets. Are big gains in Asian equities. 127 00:07:11,440 --> 00:07:14,920 Speaker 2: We see the Japanese yen weakening to the lowest level 128 00:07:15,000 --> 00:07:17,840 Speaker 2: since July twenty twenty four on this idea of a 129 00:07:17,960 --> 00:07:23,320 Speaker 2: snap poll. No more details from Prime Minister Takeichi speaking 130 00:07:23,400 --> 00:07:27,360 Speaker 2: in Nara. Currently, the NIK two two five is by 131 00:07:27,360 --> 00:07:30,840 Speaker 2: three point one percent. US stop futures this morning are 132 00:07:30,960 --> 00:07:34,960 Speaker 2: nudging lower after reaching a record on Monday. Treasuries not 133 00:07:35,040 --> 00:07:39,520 Speaker 2: much positive reaction despite the pushback to the DOJ's approach 134 00:07:39,560 --> 00:07:43,080 Speaker 2: and pursuit of the Federal reserve. The dollar at the 135 00:07:43,120 --> 00:07:46,640 Speaker 2: moment slightly firmer. European stock futures are up three tens 136 00:07:46,680 --> 00:07:49,880 Speaker 2: of one percent on the euro stocks fifty futures, and 137 00:07:49,960 --> 00:07:51,800 Speaker 2: we get the USCPI data later. 138 00:07:51,880 --> 00:07:53,240 Speaker 3: Those are the markets well. 139 00:07:53,240 --> 00:07:55,600 Speaker 4: In the moment, we'll bring you more on the opposition 140 00:07:55,680 --> 00:07:58,000 Speaker 4: to the latest pressure on the Federal Reserve, plus how 141 00:07:58,040 --> 00:08:00,760 Speaker 4: the UK plans to respond to the controversy over images 142 00:08:00,840 --> 00:08:05,560 Speaker 4: generated by Elon Musk's AI chatbot. Grock put another story 143 00:08:05,560 --> 00:08:08,600 Speaker 4: that we've been reading this morning about the question of 144 00:08:08,720 --> 00:08:13,040 Speaker 4: not just living longer, but living better. Alista Robson writing 145 00:08:13,040 --> 00:08:15,320 Speaker 4: about this for Bloomberg Pursuits. She went to Sardinia, which 146 00:08:15,360 --> 00:08:17,360 Speaker 4: is one of those so called blue zones fame for 147 00:08:17,440 --> 00:08:21,080 Speaker 4: people living longer and healthier, for a retreat which focuses 148 00:08:21,080 --> 00:08:25,760 Speaker 4: on slowing down, meeting local artisans, and focusing on community. 149 00:08:25,760 --> 00:08:28,040 Speaker 3: It's not quite the wellness retreats. 150 00:08:27,600 --> 00:08:29,840 Speaker 4: That you might read about for other places where there's 151 00:08:29,920 --> 00:08:34,800 Speaker 4: extreme fitness regimes or extreme beauty treatments involved. The activities 152 00:08:34,840 --> 00:08:38,560 Speaker 4: there included things like baking bread or pressing grapes. But 153 00:08:38,640 --> 00:08:43,000 Speaker 4: the wider theme of the piece is that the importance 154 00:08:43,000 --> 00:08:45,840 Speaker 4: of community is really the key to these Blue zones. 155 00:08:45,880 --> 00:08:48,760 Speaker 4: People live closer to their family, they have more interconnected 156 00:08:48,800 --> 00:08:50,800 Speaker 4: relationships with them as well, and she goes into some 157 00:08:50,800 --> 00:08:52,880 Speaker 4: of the scientific research behind that, and you know, we 158 00:08:52,920 --> 00:08:56,080 Speaker 4: all know that loneliness is very damaging in older years 159 00:08:56,160 --> 00:08:59,040 Speaker 4: as well, but it's perhaps a different approach to how 160 00:08:59,080 --> 00:09:01,280 Speaker 4: you reset that place some importance on it. 161 00:09:01,760 --> 00:09:04,760 Speaker 2: Yeah, I absolutely I love this story. I mean I 162 00:09:04,800 --> 00:09:08,000 Speaker 2: actually think that the Sardinia lifestyle that she describes in 163 00:09:08,040 --> 00:09:10,800 Speaker 2: some way extends to lots of parts of the Mediterranean. 164 00:09:11,000 --> 00:09:13,000 Speaker 2: And yes, it is about a kind of plant rich 165 00:09:13,120 --> 00:09:17,199 Speaker 2: diet and natural movement and those strong community ties. I mean, 166 00:09:17,200 --> 00:09:22,040 Speaker 2: it doesn't hurt that there's a good dollop of wonderful sunshine, light, 167 00:09:22,679 --> 00:09:25,840 Speaker 2: sea trees and as you say, that kind of even 168 00:09:25,920 --> 00:09:29,920 Speaker 2: communal exercise together. It's also a place and lots of 169 00:09:29,960 --> 00:09:32,920 Speaker 2: places along the med famous for kind of artists and 170 00:09:32,920 --> 00:09:34,320 Speaker 2: that kind of artist lifestyle. 171 00:09:34,440 --> 00:09:35,200 Speaker 3: So I get it. 172 00:09:35,240 --> 00:09:37,840 Speaker 2: But it's and she also talks a little bit about 173 00:09:37,880 --> 00:09:40,520 Speaker 2: the translation of how actually a lot of CEOs and 174 00:09:40,559 --> 00:09:43,719 Speaker 2: our business leaders are looking at this as a kind 175 00:09:43,720 --> 00:09:46,760 Speaker 2: of example for how they should should lead their lives 176 00:09:46,800 --> 00:09:48,040 Speaker 2: about quality of life. 177 00:09:47,840 --> 00:09:48,760 Speaker 3: Isn't it? Yeah? 178 00:09:48,800 --> 00:09:50,640 Speaker 4: Indeed, But as the question is, is how much kind 179 00:09:50,640 --> 00:09:52,280 Speaker 4: of retreat it actually make you change your habits and 180 00:09:52,320 --> 00:09:53,760 Speaker 4: you go back to your real life, which she does 181 00:09:53,800 --> 00:09:55,560 Speaker 4: tour talent on the piece as well well, worth the reader. 182 00:09:55,559 --> 00:09:57,400 Speaker 4: We'll put a link to it in our podcast show notes. 183 00:09:57,840 --> 00:10:00,120 Speaker 2: Now, let's bring you more on the pressure on the 184 00:10:00,240 --> 00:10:04,400 Speaker 2: Federal Reserve and opposition from key Republicans to the grand 185 00:10:04,440 --> 00:10:08,240 Speaker 2: jury investigation into the Central Bank. Our senior editor Alisa 186 00:10:08,320 --> 00:10:11,280 Speaker 2: bill Johns just now for more. Alistair good to speak 187 00:10:11,320 --> 00:10:14,559 Speaker 2: to you. How significant is the opposition that is emerging 188 00:10:15,000 --> 00:10:18,120 Speaker 2: from Republicans to the investigation into the FED. 189 00:10:19,559 --> 00:10:22,359 Speaker 3: Good morning, Thanks for having me on. It's critical. 190 00:10:24,240 --> 00:10:26,360 Speaker 8: First of all, I think needs to be said that 191 00:10:26,360 --> 00:10:29,400 Speaker 8: it's quite unusual to get any pushback against the president 192 00:10:29,440 --> 00:10:33,040 Speaker 8: from his Republican colleagues in the Senate, but I mean 193 00:10:33,080 --> 00:10:36,800 Speaker 8: there's been a little bit more of that recently, and. 194 00:10:38,800 --> 00:10:39,880 Speaker 3: On Sunday night. 195 00:10:40,280 --> 00:10:45,240 Speaker 8: What's most significant is Republican Tom Tillis came out and 196 00:10:45,320 --> 00:10:48,800 Speaker 8: said until this legal cloud is cleared up, he will 197 00:10:48,840 --> 00:10:52,360 Speaker 8: block any nomination for the FED to come from the 198 00:10:52,360 --> 00:10:58,640 Speaker 8: Trump administration, and that effectively prevents the President from appointing 199 00:10:59,000 --> 00:11:03,439 Speaker 8: a chair top Jerome Powell, whose current terms chair expires 200 00:11:03,480 --> 00:11:03,920 Speaker 8: in May. 201 00:11:04,320 --> 00:11:04,960 Speaker 3: And Tillis is. 202 00:11:04,960 --> 00:11:07,319 Speaker 8: Able to do that because the Senate Banking Committee is 203 00:11:07,320 --> 00:11:11,079 Speaker 8: split between thirteen Republicans and eleven Democrats. If he crosses 204 00:11:11,120 --> 00:11:15,400 Speaker 8: the art of Democrats he deadlocks it. And any presidential 205 00:11:15,400 --> 00:11:18,320 Speaker 8: nomination for the FED has to be confirmed by the Senate, 206 00:11:18,760 --> 00:11:21,080 Speaker 8: and it starts with the Senate Banking and if they 207 00:11:21,160 --> 00:11:24,360 Speaker 8: won't advance that nomination to the floor of a Senate, 208 00:11:24,640 --> 00:11:25,600 Speaker 8: it won't get a vote. 209 00:11:25,679 --> 00:11:26,920 Speaker 3: So it just stops there. 210 00:11:27,280 --> 00:11:29,920 Speaker 8: That's what makes it very important. And furthermore, you've heard 211 00:11:30,280 --> 00:11:33,240 Speaker 8: other complaints from other Republicans. They may not have gone 212 00:11:33,240 --> 00:11:35,280 Speaker 8: as far as Tillis, or they may not sit on 213 00:11:35,280 --> 00:11:37,600 Speaker 8: the Bank on the Banking Committee and be in a 214 00:11:37,640 --> 00:11:41,920 Speaker 8: position to directly interfere with this process, but it's clear 215 00:11:41,960 --> 00:11:45,679 Speaker 8: that they're very uncomfortable with the revelation. The DOJ has 216 00:11:45,720 --> 00:11:47,320 Speaker 8: sensor bean Is to the Federal Reserve. 217 00:11:48,240 --> 00:11:51,359 Speaker 4: But will this have any effect on the Trump administration's 218 00:11:51,440 --> 00:11:52,880 Speaker 4: campaign against the Fed? 219 00:11:54,679 --> 00:11:58,000 Speaker 8: Yeah, I absolutely think it will. If you if you 220 00:11:58,000 --> 00:12:00,360 Speaker 8: look at this morning's press. I don't know how much 221 00:12:00,360 --> 00:12:02,920 Speaker 8: the president reads, but we do. Nobody reads the New 222 00:12:03,000 --> 00:12:05,720 Speaker 8: York Post. New York Posts as an editorial saying this 223 00:12:05,880 --> 00:12:08,160 Speaker 8: was a bad play. This is going to backfire, This 224 00:12:08,240 --> 00:12:09,880 Speaker 8: is not going to do what you want it to do. 225 00:12:10,280 --> 00:12:14,600 Speaker 8: I mean, step back. The Trump administration is trying to 226 00:12:14,679 --> 00:12:17,520 Speaker 8: push down borrowing costs because They hope that that will 227 00:12:17,920 --> 00:12:21,480 Speaker 8: help them win the argument with American voters later this 228 00:12:21,559 --> 00:12:25,360 Speaker 8: year that they've made America more affordable. It may not 229 00:12:25,400 --> 00:12:31,319 Speaker 8: work that way, but undermining market confidence in the integrity 230 00:12:31,320 --> 00:12:34,480 Speaker 8: of US monetary polity definitely doesn't help them do that. 231 00:12:35,040 --> 00:12:37,959 Speaker 8: Since this story broke on Sunday night, you've seen ten 232 00:12:38,000 --> 00:12:40,240 Speaker 8: year treasury yels push up. They haven't pushed up by 233 00:12:40,280 --> 00:12:42,520 Speaker 8: a bunch, but they're definitely not lower. They're sort of 234 00:12:42,559 --> 00:12:45,600 Speaker 8: holding around four point two percent. And that matters because 235 00:12:46,480 --> 00:12:50,400 Speaker 8: US Treasury tenure treasuries are what are used price mortgages, 236 00:12:50,800 --> 00:12:53,320 Speaker 8: and this is all about mortgage affordability, which is a 237 00:12:53,440 --> 00:12:55,199 Speaker 8: key concern of the Trump administration. 238 00:12:55,640 --> 00:12:57,240 Speaker 3: House prices are very high. 239 00:12:57,840 --> 00:13:01,720 Speaker 8: Housing affordability is a major concer, and they know from 240 00:13:01,760 --> 00:13:06,880 Speaker 8: polling that voters are not happy. So this push is 241 00:13:07,559 --> 00:13:08,640 Speaker 8: blowing back in their face. 242 00:13:08,679 --> 00:13:12,880 Speaker 2: Basically, yes, and we'll continue to watch the market reaction. 243 00:13:13,160 --> 00:13:15,199 Speaker 2: Alistair Bill, thank you so much for being with us, 244 00:13:15,240 --> 00:13:18,800 Speaker 2: our senior editor talking about the FED. Stay with us. 245 00:13:19,000 --> 00:13:21,520 Speaker 2: More from Bloomberg dayba Cube coming up after this. 246 00:13:22,760 --> 00:13:26,160 Speaker 4: Now, the growing backlash against Elon Musk's artificial intelligence tool 247 00:13:26,240 --> 00:13:30,559 Speaker 4: GROC creating sexually suggestive images of people without their consent. 248 00:13:30,960 --> 00:13:33,280 Speaker 4: In the UK, regulators have opened to probe and the 249 00:13:33,280 --> 00:13:36,600 Speaker 4: Prime Minister has vowed to enforce existing laws and create 250 00:13:36,679 --> 00:13:39,480 Speaker 4: new ones. Are reported to at BIO is with us 251 00:13:39,520 --> 00:13:42,400 Speaker 4: for the latest TIBA. What has the UK government then 252 00:13:42,480 --> 00:13:43,720 Speaker 4: said on the issue of GROG. 253 00:13:44,840 --> 00:13:48,439 Speaker 9: So the Prime Minister has come out quite strongly against 254 00:13:48,440 --> 00:13:52,680 Speaker 9: this content that GROC is creating. He's called it disgusting 255 00:13:52,800 --> 00:13:56,400 Speaker 9: and shameful, and as you mentioned, he's vowing to enforce 256 00:13:56,480 --> 00:13:59,760 Speaker 9: a law banning the sexualization of people's images without their 257 00:13:59,760 --> 00:14:03,080 Speaker 9: can He's really the latest leader though to hit out 258 00:14:03,120 --> 00:14:07,679 Speaker 9: against Elon Musk's X for the generation of those thousands 259 00:14:07,679 --> 00:14:11,000 Speaker 9: of sexualized images, particularly of women and children that we've 260 00:14:11,000 --> 00:14:13,600 Speaker 9: seen in recent weeks, and that's through its AI assistant 261 00:14:13,679 --> 00:14:16,679 Speaker 9: GROC and for the UK at least, I do think 262 00:14:16,720 --> 00:14:22,200 Speaker 9: this latest condemnation does represent something of an escalation here. Essentially, 263 00:14:22,440 --> 00:14:24,960 Speaker 9: what is going to happen, according to the Prime Minister 264 00:14:25,080 --> 00:14:27,680 Speaker 9: is that from this week the government is going to 265 00:14:27,800 --> 00:14:31,240 Speaker 9: enforce an offense that was established in last year's Data 266 00:14:31,320 --> 00:14:36,000 Speaker 9: Act that made the creation of non consensual intimate images illegal. 267 00:14:36,320 --> 00:14:39,400 Speaker 9: And Starmer has been speaking to Parliament yesterday. He said basically, 268 00:14:39,480 --> 00:14:43,040 Speaker 9: if X can't control GROC, the government will, and it 269 00:14:43,080 --> 00:14:46,400 Speaker 9: seems like he's planning to do that using the force 270 00:14:46,480 --> 00:14:49,800 Speaker 9: of the law. He's also leveled some quite direct accusations 271 00:14:50,120 --> 00:14:54,400 Speaker 9: at X. He's accused them of protecting the abusive users 272 00:14:54,440 --> 00:14:57,920 Speaker 9: in this situation as opposed to the victims. And this 273 00:14:58,000 --> 00:15:02,320 Speaker 9: also comes as the UK's Commune Nications regulated Offcom has 274 00:15:02,400 --> 00:15:06,280 Speaker 9: launched a form more investigation into X and whether it's 275 00:15:06,360 --> 00:15:10,200 Speaker 9: breached British laws in allowing that content to be generated 276 00:15:10,240 --> 00:15:12,960 Speaker 9: and shared on its platform, and if they find that 277 00:15:12,960 --> 00:15:15,560 Speaker 9: that's the case, we could see a fine or other 278 00:15:15,600 --> 00:15:17,720 Speaker 9: restrictions for the X platform. 279 00:15:18,040 --> 00:15:18,200 Speaker 8: Yeah. 280 00:15:18,240 --> 00:15:20,520 Speaker 2: I suppose the criticism of the UK government though, was 281 00:15:20,560 --> 00:15:23,120 Speaker 2: that it was lots of strong words but really holding 282 00:15:23,160 --> 00:15:25,360 Speaker 2: back in terms of the action. What are other countries 283 00:15:25,440 --> 00:15:29,000 Speaker 2: doing and the US Congress doesn't seem to be acting. 284 00:15:29,720 --> 00:15:30,720 Speaker 3: Yeah, you're right, Caroline. 285 00:15:30,720 --> 00:15:35,840 Speaker 9: We've definitely perhaps seen stronger actions in other countries like 286 00:15:36,080 --> 00:15:41,200 Speaker 9: Malaysia and Indonesia. They've already placed heavy usage restrictions on 287 00:15:41,560 --> 00:15:46,440 Speaker 9: X as a result of this situation. Remember, indecent images 288 00:15:46,480 --> 00:15:50,680 Speaker 9: are particularly a sensitive issue in socially conservative regions like Malaysia, 289 00:15:50,800 --> 00:15:55,880 Speaker 9: Like Indonesia, Malaysia temporarily blocking the program until it says 290 00:15:56,840 --> 00:16:01,320 Speaker 9: it sees effective safeguards implemented, and in Indonesia also and 291 00:16:01,360 --> 00:16:05,720 Speaker 9: stated a temporary ban. We've also seen India's government voicing 292 00:16:05,800 --> 00:16:10,320 Speaker 9: concern over grow a similar situation in France as well. 293 00:16:10,400 --> 00:16:13,400 Speaker 9: I mean, there's definitely a growing quorum of a discontent 294 00:16:13,960 --> 00:16:17,440 Speaker 9: with X and with MASK that seems to be bubbling 295 00:16:17,520 --> 00:16:18,200 Speaker 9: around the world. 296 00:16:20,280 --> 00:16:23,000 Speaker 4: This is Bloomberg Daybreak Europe, your morning brief on the 297 00:16:23,080 --> 00:16:26,120 Speaker 4: stories making news from London to Wall Street and beyond. 298 00:16:26,440 --> 00:16:30,440 Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify, 299 00:16:30,520 --> 00:16:32,560 Speaker 2: and anywhere else you get your podcasts. 300 00:16:32,600 --> 00:16:35,680 Speaker 4: You can also listen live each morning on London DAB Radio, 301 00:16:35,720 --> 00:16:38,400 Speaker 4: the Bloomberg Business app, and Bloomberg dot Com. 302 00:16:38,440 --> 00:16:41,200 Speaker 2: Our flagship New York station is also available on your 303 00:16:41,240 --> 00:16:45,960 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 304 00:16:46,200 --> 00:16:48,240 Speaker 3: I'm Caroline Hipka and I'm Stephen Carol. 305 00:16:48,320 --> 00:16:50,640 Speaker 4: Join us again tomorrow morning for all the news you 306 00:16:50,720 --> 00:16:53,360 Speaker 4: need to start your day right here on Bloomberg day 307 00:16:53,400 --> 00:16:57,800 Speaker 4: Break Europe.