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

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Speaker 2: This is the Bloomberg daybak At podcast. Good morning, It's Tuesday,

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Speaker 2: the sixth January. I'm Caroline Hepket in London.

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Speaker 1: And I'm Stephen Caroline Brussels. Coming up today, Venezuela swears

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Speaker 1: in a new president as the government reasserts control in Caracas,

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Speaker 1: while Nicholas Maduro declares his innocence in a New York courtroom.

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Speaker 2: The Danish Prime Minister Meta Fredrickson warns a US attack

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Speaker 2: on Greenland would mark the end of NATO.

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Speaker 1: Plus Cracks widen in the UK's three hundred and thirty

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Speaker 1: billion pound wealth management industry as family officers start scaling back.

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

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Speaker 1: As the toppling of Nicholas Maduro continues to reverberate around

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Speaker 1: the world, Venezuela's government has sworn in Delsia Rodriguez as

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Speaker 1: acting president. In Caracas, there are signs of a new

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Speaker 1: wave of repression beginning. Witnesses have told Bloomberg that military

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Speaker 1: counterintelligence of IT have been patrolling the streets of Caracas.

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Speaker 1: Several journalists are also said to have been detained. White

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Speaker 1: House Deputy Chief of Staff Stephen Miller was asked if

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Speaker 1: Delsea Rodriguez is consulting with President Trump.

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Speaker 3: Look, we have an oil in bargo in Venezuela. For

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Speaker 3: them to do any kind of commerce, they need our permission.

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Speaker 3: We have our massive fleet or a moto still President there.

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Speaker 3: This is an active and ongoing US government and military operation,

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Speaker 3: and so of course we set the terms and condition.

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Speaker 1: And also so that the US is getting complete and

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Speaker 1: total cooperation from the government of Venezuela. In an interview

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Speaker 1: with NBC, President Trump suggested the US may subsidize efforts

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Speaker 1: by energy companies to rebuild Venezuela's oil industry. His comments

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Speaker 1: underscore how the country's vast oil reserves are being seen

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Speaker 1: by the White House as central to both the Venezuela's

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Speaker 1: recovery and to US strategic interests.

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Speaker 2: Venezuela's captured President, Nicolas Maduro, has pleaded not guilty in

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Speaker 2: his first US court appearance. Entered not guilty pleas to

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Speaker 2: the four charges he faces of narco terrorism, conspiracy, cocaine importation, conspiracy,

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Speaker 2: possession of machine guns, and conspiracy to possess machine guns.

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Speaker 2: Speaking through an interpreter, Maduro told the court that he

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Speaker 2: is innocent and a decent man who has been kidnapped

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Speaker 2: from his home. Bloomberg's Miles Miller was at the hearing.

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Speaker 4: Prosecutors lay out a case in which there was a

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Speaker 4: narco terrorism conspiracy benefiting four gangs, including the Cineloa Cartel

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Speaker 4: and Trenda Agras. And they believe that starting in two

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Speaker 4: thousand and going up until about twenty twenty, that they

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Speaker 4: moved over two hundred and fifty tons of cocaine per

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Speaker 4: year through Venezuela, and that happened facilitated by Murduro and

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Speaker 4: his wife.

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Speaker 2: Bloomberg's Miles Miller reporting. Maduro's wife, Celia Flores, who was

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Speaker 2: also in court, pleaded not guilty to the three charges

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Speaker 2: she faces.

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Speaker 1: The intervention in Venezuela has fed concerns about other controversial

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Speaker 1: US foreign policy actions. Denmark's Prime Minister Meta Frederickson is

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Speaker 1: warning that NATO will collapse if the US attacks Greenland.

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Speaker 1: Here she is speaking to a Danish broadcaster for the.

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Speaker 5: First I believe that the American president should be taken

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Speaker 5: seriously when he says he wants Greenland. But I also

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Speaker 5: want to make it clear that if the United States

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Speaker 5: chooses to attack another NATO country militarily, then everything stops.

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Speaker 6: Sure.

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Speaker 1: Frederickson, speaking via translator, has begun to directly warn against

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Speaker 1: a US attack and its consequences after the raid on Venezuela.

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Speaker 1: Donald Trump has long argued that controlling Greenland is necessary

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Speaker 1: for US national security. European leaders have publicly defended Denmark's

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Speaker 1: sovereignty and NATO's principle of collective defense.

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Speaker 7: Well.

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Speaker 2: European leaders and US officials are attempting to finalize a

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Speaker 2: deal on security guarantees for Ukraine. Sources tell Bloomberg that

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Speaker 2: talks in Paris today we'll discuss the possibility of US

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Speaker 2: troops on the as allies attempt to coordinate their armed forces.

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Speaker 2: Getting Western military backing has been a key red line

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Speaker 2: for Ukraine, which fears Russia will undermine any peace settlement.

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Speaker 2: Former US president of the German Marshal Fund, Heather Connolly

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Speaker 2: says progress towards any cease far is so far one sided.

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Speaker 8: I'm seeing the positives on the Ukrainian and the European side.

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Speaker 8: Russia absolutely nothing. In fact, you see Vladimir Putin wanting

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Speaker 8: to expand this war, not taking any of these signals.

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Speaker 8: So progress on the Ukrainian European side, nothing on the.

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Speaker 2: Russian side right now, Heather Connolly, speaking there. Ukraine's Vladimir

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Speaker 2: Zelinski has said that he hopes to set up a

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Speaker 2: meeting in the US at the leader's level. By the

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Speaker 2: end of January.

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Speaker 1: Italy is expected to reverse course and back the Mercosur

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Speaker 1: Free Trade Agreement, paving the way for the EU to

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Speaker 1: approve the deal. Plombergoder stands the vote on the ninth

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Speaker 1: of January will probably be the last you're hurdle in

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Speaker 1: sealing an agreement with this South American block of countries,

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Speaker 1: which has been in the works for twenty five years.

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Speaker 1: News of Italy's change of heart comes after the country

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Speaker 1: campaign to delay the treaty last month, alongside France, arguing

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Speaker 1: it still lacked appropriate agricultural protections. A spokesperson for the

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Speaker 1: Italian government declined to comment.

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Speaker 2: British finance chiefs are warming to the idea that AI

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Speaker 2: could supercharge their profits. Thus, according to new research which

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Speaker 2: shows a sharp optic in positive attitudes towards the technology

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Speaker 2: among business leaders, Blueberg's Tia at Bayo has the.

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Speaker 7: Story optimism is something in short supply amongst the UK's

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Speaker 7: Business Leader's accountancy firm Deloitte's latest positivity mesure came in

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Speaker 7: at minus thirteen, whilst the Institute of Director's Economic Confidence

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Speaker 7: Index sits at minus sixty six. But when it comes

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Speaker 7: to artificial intelligence, it seems that the opposite is true.

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Speaker 7: Deloitte's recent survey shows more than half the country's chief

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Speaker 7: financial officers expect a growth boost from the technology and

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Speaker 7: over ninety five percent prediction rising investment in the space

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Speaker 7: by UK firms in the next five years. While concerns

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Speaker 7: linger over whether AI will trigger job losses, it's also

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Speaker 7: hailed as a potential game changer for the weak economic

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Speaker 7: growth rates that have played the country for years. According

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Speaker 7: to Central Bank Governor Andrew Bailey, the software could usher

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Speaker 7: in this sort of growth last seen by computers and

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Speaker 7: the internet.

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Speaker 6: In London. To you added Bio Bloomberg Radio.

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Speaker 2: And those are our top stories for you this morning.

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Speaker 2: On the markets, Asian equities climbing to a record high.

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Speaker 2: MASCIAS Pacific index are by one point one percent. You

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Speaker 2: also had gains for US stocks on Monday now, so

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Speaker 2: that was up by almost one percent, eight tens of

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Speaker 2: one percent. Half futures are up for Europe and for

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Speaker 2: the US today, oil prices are more muted. Today they're

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Speaker 2: down three tens of one percent, sixty one dollars fifty six.

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Speaker 2: The bow looking at the Blueberg dollar spot index at

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Speaker 2: slightly weaker this morning. And when it comes to teny

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Speaker 2: treasury yields ahead of the labor market data that we

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Speaker 2: get out of the US this week, we are up

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Speaker 2: to basis points are four eighteen on teny of treasury yields.

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Speaker 2: Those are the markets.

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Speaker 1: In a moment, we'll bring you the latest on what's

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Speaker 1: been happening in Venezuela, plus why some family officers in

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Speaker 1: the UK are starting to scale back their operations. Put

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Speaker 1: another story that we've been reading this morning. Are you

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Speaker 1: a betting person? Would you consider, you know, going out

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Speaker 1: there and getting into the prediction markets game? This new area,

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Speaker 1: of course a big question around us whether it does

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Speaker 1: count as gambling or as a financial product.

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Speaker 2: Yeah, having a flutter perhaps. The prediction platforms I think

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Speaker 2: have just become such a huge deal over the last year,

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Speaker 2: particularly because you can battle so many different things, or

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Speaker 2: at least you can you can yeah, place money on

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Speaker 2: so many real world events, I mean sports and politics.

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Speaker 2: The price of Bitcoin, Polymarket and Calshi are the pioneers

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Speaker 2: in this area. They are each now as businesses worth

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Speaker 2: more than ten billion dollars themselves. A lot of traditional

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Speaker 2: financial firms have also brought into this predictions industry. Steven

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Speaker 2: the promoters basically talk about it as the ability to

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Speaker 2: churn out intelligence on all sorts of things, harnessing and

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Speaker 2: continuously updating the idea of the wisdom of the crowd.

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Speaker 2: That's the kind of argument for the issue is though

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Speaker 2: that is emerging, is that markets on these platforms often

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Speaker 2: very thin. Maybe a single trader can move prices. There

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Speaker 2: are concerns about insider information and how that's handled, whether

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Speaker 2: there's really a system to kind of route.

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Speaker 6: Out bad actors.

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Speaker 2: And then that also really came to the fore over

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Speaker 2: the weekend because of a big bet around Venezuela this weekend.

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Speaker 1: Yeah, that's right, a trader and poly Market made nearly

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Speaker 1: four hundred thousand dollars after betting on the capture of

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Speaker 1: Nicholas Maduro, the biggest trades being placed just before President

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Speaker 1: Donald Trump announced the military operation as well. So this

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Speaker 1: is something that has led a growing number of state

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Speaker 1: regulators in the US to talk about prediction markets needed

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Speaker 1: to be treating as gambling. The big gambling firms already

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Speaker 1: treat them as competitors.

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Speaker 2: Now.

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Speaker 1: The difference, of course with these prediction markets is that

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Speaker 1: people are betting against each other. There's no house setting odds.

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Speaker 1: It's based on who has bet essentially the yes or

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Speaker 1: no outcome against it.

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Speaker 9: But it's a very interesting one to watch.

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Speaker 1: Lots of questions about how this can be regulated to

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Speaker 1: CFTC of course still missing several commissioners, so an understaffed

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Speaker 1: agency as well. This is going to be a very

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Speaker 1: interesting one to watch. It's a great read. This morning

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Speaker 1: bets on Maduro and Jesus showed promise as risks of

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Speaker 1: prediction boom.

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Speaker 2: Now let's bring you the latest on Venezuela. After Nicholas

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Speaker 2: Maduro's court appearance in New York. We have been speaking

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Speaker 2: to our senior US government edis a Derek Wallbank, and

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Speaker 2: we started by asking him what we learned from Nicholas

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Speaker 2: Maduro's court appearance.

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Speaker 9: It was a remarkable appearance.

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Speaker 10: Here you're talking about somebody who carries the title of

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Speaker 10: president of a sovereign state, Venezuela, looking every bit like

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Speaker 10: an ordinary defendant. Now Nicholas Maduro is in no way ordinary.

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Speaker 10: You know, he's he's a six foot three guy. You know,

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Speaker 10: he literally head taller than all of the security people

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Speaker 10: who were guarding him today. But other than that, he

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Speaker 10: would have been anybody in that courtroom.

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Speaker 9: He entered a plea of not guilty. He said he

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Speaker 9: was a decent man.

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Speaker 10: He said he had been quote kidnapped from his from

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Speaker 10: his hometown in Caracas, and that was the start of

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Speaker 10: what will be an involved process. The United States has,

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Speaker 10: you know, certainly a bar to clear in a legal proceeding,

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Speaker 10: and the Trump administration, though it has said for a

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Speaker 10: very long time that it has a nailed down case

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Speaker 10: against Maduro over drug trafficking and similar you know, this

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Speaker 10: is an administration that has sometimes struggled in the legal department,

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Speaker 10: and so this will have to be an air tight

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Speaker 10: case going forward.

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Speaker 2: Which could take some time, as you say. Meanwhile, in Venezuela,

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Speaker 2: DLCI Rodriguez was sworn in as acting president and the

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Speaker 2: government there has also been reasserting itself. So is there

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Speaker 2: any sign of broader change in Caracas?

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Speaker 10: Well, I think there's change in that one person is gone.

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Speaker 10: But I think the question that you have about whether

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Speaker 10: numbers too through infinity beyond stepping up a notch count

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Speaker 10: as a change is one that's echoed by a lot

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Speaker 10: of American lawmakers right now on both sides of the aisle.

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Speaker 9: You know, certainly.

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Speaker 10: We've heard reports about people being arrested in Venezuela. It

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Speaker 10: you know, looks for all the world that even though

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Speaker 10: Delcia Rodriguez is now making somewhat you might say the

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Speaker 10: word conciliatory, it doesn't quite feel right, but less bellicose

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Speaker 10: states today than yesterday. You know, the the Trump administration

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Speaker 10: would signaled that that's progress. They've put Marco Rubio, the

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Speaker 10: Secretary of State, who used to be a Florida senator

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Speaker 10: and has been involved in Latin American issues for a

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Speaker 10: very very long time, as a point person here. But

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Speaker 10: certainly I think there are a number of questions, not

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Speaker 10: least of which what of the Venezuelan opposition recalled that

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Speaker 10: Donald Trump got beaten for the Nobel Peace Prize by

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Speaker 10: an opposition leader, and she went on Sean Hannity, one

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Speaker 10: of the President's favorite TV shows on Fox News, and

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Speaker 10: she told Sean Hannity, a close Trump ally, that she

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Speaker 10: hasn't spoken to the president since October.

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Speaker 9: So what should we.

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Speaker 1: Be expecting from the opposition in terms of all of

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Speaker 1: this those comments, as you say, we heard from Maria

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Speaker 1: Corina Machado, But should we be expecting more from them?

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Speaker 10: I think the question at this point is twofold. One

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Speaker 10: can the opposition demonstrate an ability to actually do the

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Speaker 10: mechanics of governance?

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Speaker 9: And two? What is the Trump administration's priority going to be? Now?

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Speaker 9: I think they have been very very clear.

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Speaker 10: Certainly the president has that his goal here is stability

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Speaker 10: and rebound, and that rebound is going to take the

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Speaker 10: form of infrastructure. It's going to take the form of

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Speaker 10: attempts to switch back on the fullness.

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Speaker 9: Of resource extraction, particularly oil in Venezuela.

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Speaker 10: He has no secret that Venezuela has gone down by

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Speaker 10: most you know, by most metrics in the last many years.

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Speaker 9: What is there to take over? What are you taking over? What?

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Speaker 4: You know?

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Speaker 10: What does that look like? Who's going to want to

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Speaker 10: go in? Knowing that Venezuela has a history of assets

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Speaker 10: seizures from Western companies. President Donald Trump has said that

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Speaker 10: he thinks that oil majors, American oil majors think Exon Mobile,

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Speaker 10: think Connico, Phillips. Chevron already has a presence related to

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Speaker 10: then as well. You know, so what are those things

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Speaker 10: going to look like? That's a real that's a real

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Speaker 10: open question. The Energy Secretary is supposed to meet with

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Speaker 10: some oil companies later this week to sort of talk

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Speaker 10: through some of this. But how what that looks like

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Speaker 10: and even who's involved is something I think that is

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Speaker 10: very much up.

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Speaker 1: In the air, so as our seeing in the US

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Speaker 1: government out of Derek Worldbank there stay with us. More

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Speaker 1: from Bloomberg Daybreak Europe coming up after this.

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Speaker 2: Now, let's go to a story here in the UK.

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Speaker 2: Family offices catering to the fortunes of wealthy clans had

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Speaker 2: proven a resilient part of the UK's wealth management industry

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Speaker 2: even after recent tax changes, but that now seems to

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Speaker 2: be changing. Joining us is our ultra wealth reporter Ben Stupples,

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Speaker 2: who has more on this story. Ben. I read your

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Speaker 2: piece with great interest. You found that these firms are

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Speaker 2: starting to scale back operations in the UK.

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Speaker 6: How are they doing that? Good Born in Caroline.

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Speaker 11: They are doing that by moving from I would say

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Speaker 11: some of the nicest offices that we could put money

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Speaker 11: can buy in London and going to maybe more downmarket,

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Speaker 11: still nice places to work, but actually you know, for example,

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Speaker 11: going from a really prime location in the middle of

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Speaker 11: Chelsea to one actually down the road from our London office.

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Speaker 11: Still a good place to be, but not as nice

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Speaker 11: as before. Now why are they doing this? Obviously, you know,

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Speaker 11: family offices are very secretive. None are really telling us

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Speaker 11: on the record what's going on. But us we're trying

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Speaker 11: to read between the lines here, and what's happening often

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Speaker 11: is the billionaires that these firms serve, the billionaires behind

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Speaker 11: them are often.

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Speaker 6: Relocating because of the tax changes.

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Speaker 11: In this We've got examples of al jehin not Worth's

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Speaker 11: moving from the UK to Switzerland, trying to establish teams

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Speaker 11: for their family offices elsewhere.

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Speaker 6: This is a really significant move because amid all the UK.

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Speaker 11: Welsh term orl that we've been talking about over the

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Speaker 11: last eighteen months, because of the non domicile changes, a

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Speaker 11: lot of people in the private wealth industry have gone

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Speaker 11: I will be fine. London is fine because the family

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Speaker 11: offices are all still here.

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Speaker 6: Yes, they are still here.

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Speaker 11: But what we're seeing here is the first cracks really

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Speaker 11: starting to show, and that is a significant development.

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Speaker 1: So talk to us about then the places that these

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Speaker 1: family officers are going to instead, where is the biggest

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Speaker 1: draw for them?

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Speaker 6: And why this is really.

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Speaker 11: Interesting, Stephen, because actually they're going everywhere, I mean all

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Speaker 11: the other rival wealth hubs that traditionally that we have

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Speaker 11: so from Monaco, I mentioned Switzerland, the United Arab Emirates

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Speaker 11: is rising increasingly as a big competitor for London. And

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Speaker 11: this is the change here. Twenty years ago, if you

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Speaker 11: were creating a family office, you would go, Okay, London,

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Speaker 11: New York, maybe Hong Kong. And now that you've got

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Speaker 11: a whole menu of places where you can where you

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Speaker 11: can basically set up the main entity if you're our

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Speaker 11: family office, and traditionally you maybe we'ld have one place,

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Speaker 11: but actually now you can have of multiple branches because

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Speaker 11: family offices are growing in number but also growing in

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Speaker 11: scale and sophistication. So what we're seeing here is London's

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Speaker 11: tax changes driving a global shift in the fact that

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Speaker 11: family offices are operating in more than one location. And

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Speaker 11: that is a big change from how this industry a

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Speaker 11: very secretive industry but very influential because these firms serve

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Speaker 11: billions of dollars typically each a real shift in how

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Speaker 11: things are operating today.

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Speaker 2: Yeah, and I mean not to put the case I

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Speaker 2: suppose for these amazingly wealthy individuals, but I was really

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Speaker 2: fascinated by the point that you made in your story,

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Speaker 2: which is here in the UK, those family offices have

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Speaker 2: been funding a lot of startup businesses, which I thought

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Speaker 2: was really very noteworthy. You know, those businesses that may

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Speaker 2: be high growth or trying new things benefit from having

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Speaker 2: those backuts which are That was fascinated. So what do

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Speaker 2: you think might be the broader effect then on the

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Speaker 2: city of London.

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Speaker 11: Yeah, the ripple effects are starting to show, as you say, Caroline.

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Speaker 11: You know, family officers in the UK have accounted for

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Speaker 11: about three quarters in previous years for investing into the

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Speaker 11: venture capital ecosystem. Other ripple effects are the prime property

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Speaker 11: sales and prime Central London and non Don hot spot

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Speaker 11: ul Jahworth hotspot. They're flatlining. In the meantime, you know,

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Speaker 11: rental activity in that area is going up. Why because

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Speaker 11: al john Worths are going You know, I don't think

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Speaker 11: I want to live in London forever, maybe so won't

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Speaker 11: buy a place, but maybe I'll just rent a place

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Speaker 11: for a few years. And we've even had Ferrari, you know,

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Speaker 11: coming and saying we're actually not We're actually not going

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Speaker 11: to have as many Ferraris in London right now because

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Speaker 11: the market there are as many ol johnah Worths there.

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Speaker 6: So we're seeing the ripple effects.

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Speaker 11: It's hard to point to point your finger and go ha,

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Speaker 11: here's the definitive.

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Speaker 6: Effect of the text changes.

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Speaker 11: But what we're reporting here is here's another sign of

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Speaker 11: the spillover of the fallout from the UK basically evolving

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Speaker 11: in a world that's increasingly competitive for tracting our Johigh

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Speaker 11: networth individuals. I'm sure there will be more coming forward,

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Speaker 11: and I'll do my best to point them out for

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Speaker 11: our for our audience, this.

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Speaker 1: Is Bloomberg Daybreak Europe, your morning brief on the stories

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Speaker 1: making news from London to Wall Street and beyond.

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Speaker 1: You can also listen live each morning on London Dab Radio,

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Speaker 2: I'm Caroline Hepka and.

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Speaker 1: I'm Stephen Carroll. Join us again tomorrow morning for all

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Speaker 1: on Bloomberg day Break. Europe