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

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Speaker 2: This is the Bloomberg Daybreak you at podcast. Good morning.

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Speaker 3: It's Monday, the twenty third of February. I'm Caroline Hepcitt

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Speaker 3: in London and.

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Speaker 4: I'm Stephen Caroline Brussels. Coming up today, the United States

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Speaker 4: tells trading partners they must honor their tariff agreements as

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Speaker 4: Trump's trade agenda risks unraveling.

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Speaker 3: The EU calls for clarity on White House policy following

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Speaker 3: the Supreme Court's ruling, as the UK risks being the

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Speaker 3: biggest loser.

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Speaker 4: Plus not such an asset. Why a German pension fund

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Speaker 4: spectacular implosion is putting a three hundred billion euro industry

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Speaker 4: under scrutiny.

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

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Speaker 4: Countries are beginning to reassess their US trade deals after

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Speaker 4: President Trump's signature tariffs were struck down following the Supreme

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Speaker 4: Court's decision. On Friday, Trump introduced a new ten percent levy,

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Speaker 4: which he then increased to fifteen percent on Saturday. That

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Speaker 4: rate is lower than are equivalent to the rate that

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Speaker 4: many nations had negotiated with the White House. But US

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Speaker 4: Trade Representative Jameson Greer told CBS has faced the nation

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Speaker 4: that the deals that Trump administration had signed remain in place.

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Speaker 1: The deals were not premised on whether or not the

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Speaker 1: emergency teriff litigation would rise or fall. They weren't premised

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Speaker 1: on that. So it's totally normal for these countries to

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Speaker 1: talk to each other, have meetings internally to determine this.

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Speaker 1: But rest assured. I've been speaking to these folks as well,

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Speaker 1: and I've been telling them for a year whether this case,

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Speaker 1: whether we won or lost, we were going to have teriff.

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Speaker 1: The President's policy was going to continue. That's why they

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Speaker 1: signed these deals even while the litigation was pending.

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Speaker 4: Jameson Greer says, the US will be standing by the

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Speaker 4: trade deals that signed, and they expect their partners to

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Speaker 4: stand by them as well.

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Speaker 3: Now, there are already questions over President Trump's new fifteen

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Speaker 3: percent global tariff. The new levy replaces those that the

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Speaker 3: US Supreme Courts struck down on Friday. The statute allows

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Speaker 3: US presidents to impose duties for up to one hundred

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Speaker 3: and fifty days in situations of fundamental international payments problems.

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Speaker 3: Here is the US Treasury Sectary Scott Bessett, speaking to

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Speaker 3: CNN's State of the Union.

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Speaker 5: The President, the administration remains undeterred in restoring American factories

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Speaker 5: and getting rid of these massive trade imbalances. That's the

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Speaker 5: big story here is that we are immediately going to

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Speaker 5: go to Section one twenty two tariffs, that the revenue

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Speaker 5: for the US Treasury for twenty twenty six, the projections

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Speaker 5: are unchanged.

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Speaker 2: Scott Bessent.

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Speaker 3: They're referring to Section one two two of the nineteen

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Speaker 3: seventy four Trade Act, which provides for tariffs under specific circumstances,

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Speaker 3: including large and serious balance of payments deficits. But a

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Speaker 3: host of economists and former US trade officials have told

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Speaker 3: Bloomberg that there is no evidence that the US is

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Speaker 3: unable to pay its bills or meet its OLF obligations

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Speaker 3: to international investors.

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Speaker 4: Friction between the United States and its trading partners over

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Speaker 4: the renewed tariff uncertainty is already spilling into public view.

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Speaker 4: The chair of the European Parliament's Trade Committee, Burned Langa,

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Speaker 4: says he will now propose the freezing of the ratification

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Speaker 4: of the EU tariff deal with the US until the

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Speaker 4: Trump administration clarifies its policy. Meanwhile, the European Central Bank President,

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Speaker 4: and Christian the Guard says the latest tariff moves risk

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Speaker 4: upsetting the previously negotiated equilibrium.

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Speaker 6: It's critically important that all people in the trade, both

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Speaker 6: outside of the United States but also in the United States,

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Speaker 6: have clarity about the future of the relationships because you know,

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Speaker 6: it's a bit like driving. You want to know the

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Speaker 6: rules of the road before you get in the car.

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Speaker 6: It's the same with trade.

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Speaker 4: Christian the Guard there speaking to CBS has faced the

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Speaker 4: nation as European Union lawmakers get set to hold an

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Speaker 4: emergency meeting today on the matter in New Delhi. Officials

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Speaker 4: that cited similar reasons to the US as the reason

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Speaker 4: for India postponing talks in the US this week on

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Speaker 4: finalizing an interim trade deal and ahead of the US

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Speaker 4: President's trip to China. Beijing now says it is conducting

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Speaker 4: a comprehensive assessment of the implications of the Supreme Court ruling,

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Speaker 4: According to a Ministry of Commerce spokesperson.

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Speaker 3: Well after spending months talking up its special status, Britain

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Speaker 3: is at risk of becoming the biggest loser from the

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Speaker 3: US Supreme Court's ruling. The UK had agreed a tariff

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Speaker 3: rate of ten percent, but if the US imposes fifteen

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Speaker 3: percent tariffs on all countries, that will mean a high increase.

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Speaker 7: Blouembig's James Walcock has more ask anyone in the Labor

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Speaker 7: Party what our kiss. Starmer's biggest success is as Prime Minister,

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Speaker 7: and they're likely to name the UK US trade deal.

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Speaker 7: The US is Britain's largest single trading partner, and Starmer

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Speaker 7: had one praise for manager to secure a tariff rame

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Speaker 7: lower than the EU. At the time, Bloomberg Economics estimated

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Speaker 7: the marginally lower rate would improve the UK's GDP by

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Speaker 7: zero point one percent, but having to cozy up to

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Speaker 7: the US president has also cost the Prime minister deally

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Speaker 7: in political capital. If Britain's favorable deal goes up in smoke,

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Speaker 7: Westminster may wonder what it has received from its months

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Speaker 7: trying to placate to the White House in London. James Wilcock,

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Speaker 7: Bloomberg Radio.

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Speaker 4: Oil prices have fallen as traders considered the odds of

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Speaker 4: a nuclear deal between the United States and Iran. Broncrew

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Speaker 4: dipped towards seventy one dollars a barrow, with more negotiations

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Speaker 4: planned for Thursday. On Friday of last week, President Trump

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Speaker 4: said he was considering limited military strikes on Iran. Speaking

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Speaker 4: on CBS's Face the Nation, Iran's foreign minister Abbas Aragchi

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Speaker 4: said he believes in a non violent situation, if.

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Speaker 8: They want to find a resolution for Iran's peaceful nuclear program,

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Speaker 8: the only way is diplomacy. You have proved this in

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Speaker 8: the past, and I believe that still there is a

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Speaker 8: good chance to have a diplomatic solution which is based

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Speaker 8: on a win win game, and a solution.

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Speaker 2: Is at our reach.

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Speaker 4: Iran's OFAs are actually there. Speaking to CBS News, the

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Speaker 4: International Atomic Energy Agencies borders scheduled to meet in Vienna

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Speaker 4: next week, where diplomats are expected to consider a new

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Speaker 4: resolution centering around for its nuclear program and could refer

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Speaker 4: to the United Nations Security Council for further action.

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Speaker 3: Hungary is planning to block new EU sanctions on Russia

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Speaker 3: and key loans to Ukraine until oil deliveries to Hungary restart.

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Speaker 3: Speaking at the weekend, Hungarian President Victor Allbann said that

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Speaker 3: the ninety billion euros in loans to Ukraine previously agreed

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Speaker 3: by the EU won't materialize until dispatches resume. Speaking to

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Speaker 3: Bloomberg last month, the Foreign Minister Petercarto expressed his dissatisfaction

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Speaker 3: with the EU's Ukraine policy.

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Speaker 9: Very dangerous what European Union is doing are regarding the war.

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Speaker 9: It's very dangerous that they are sending and spending the

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Speaker 9: money of the European people on the war. We are

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Speaker 9: not ready to send any eurocenter of the Hungarian people

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Speaker 9: to Ukraine to operate their country and to bring more weapons.

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Speaker 3: That was Hungary, is Peter Siato speaking to Bloomberg there

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Speaker 3: in January. A vote on the EU's twentieth sanctions package

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Speaker 3: against Russia is expected today. The Drusburg pipeline system in question,

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Speaker 3: which moves Russian crew to Hungary and Slovakia through Ukraine,

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Speaker 3: was damaged in a Russian attack on the twenty seventh

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Speaker 3: of January, leading to a halt in shipments. So those

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Speaker 3: are our top stories for you this morning. Let's look

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Speaker 3: at the markets. This our tarif uncertainty is dampened appetite

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Speaker 3: for US assets, so the doll at the moment is

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Speaker 3: weaker two tenths of one percent. This also after we

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Speaker 3: saw the S and P five hundred gaining on Friday

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Speaker 3: seven tenths of one percent. Stop futures and deeply in

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Speaker 3: the red moments seven tenths this hour, yields on ten

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Speaker 3: year treasuries will begin at four sports zero eight. No

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Speaker 3: cash treasuries trading in Asia hours because Japan is closed

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Speaker 3: for holiday, but some relief in Asia because maybe this

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Speaker 3: new US global tariff is lower than some of the

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Speaker 3: previous trade deals struck. And so you've seen the hang

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Speaker 3: sing jump two point four percent this morning. MSCIA specificate

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Speaker 3: the EXLP seven tenths all prices are down one percent.

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Speaker 2: Those are the markets in a moment.

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Speaker 4: What next for Donald Trump's tariffs and the trade deals

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Speaker 4: with the EU and others. Plus how troubles at a

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Speaker 4: German pension fund are raising big questions about the whole

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Speaker 4: country's retirement system.

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Speaker 2: Put another story that we've been reading this morning.

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Speaker 4: Do clubbers go out to dance now or just to

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Speaker 4: film it on their phones instead? This is not how

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Speaker 4: I spent my weekend, although by the sounds of it,

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Speaker 4: I don't think I really enjoy it either. Tyfanyly Apps

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Speaker 4: been writing about how in nightclubs the shows are getting bigger,

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Speaker 4: but audiences are changing too. She writes, the club increasingly

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Speaker 4: resembles concerts, so forward facing phone and strangely static. And

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Speaker 4: she's been writing about what this means for the whole economy,

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Speaker 4: the whole lightlife economy really, and how nightclubs are essentially

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Speaker 4: ramping up the show, the screens, the light show.

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Speaker 2: Et cetera.

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Speaker 4: That's leading some to overextend themselves, causing problems the sector

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Speaker 4: as well, but also kind of bigger conversations. DJ's are

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Speaker 4: saying they're not getting longer sets anymore. It's all about shorter,

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Speaker 4: sharper It's about creating sharable moments over danceable experiences.

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Speaker 3: I love this story about the business of dance music,

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Speaker 3: but I was really sad to hear that rave culture

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Speaker 3: has kind of turned into a spectator spois, not the

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Speaker 3: kind of wild up age.

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Speaker 4: Caroline Well.

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Speaker 3: I was thinking that, but then I did listen to

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Speaker 3: some music over the weekend and I was sitting down anyway.

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Speaker 2: I love that story from Tiffany app. Yeah, we'll bring

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Speaker 2: back dancing.

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Speaker 4: We'll put a link to it in our podcast show

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Speaker 4: notes as well. So what next now for Donald Trump's

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Speaker 4: trade tara After Friday's Supreme Court decision, the US president

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Speaker 4: has promised a fifteen percent global tariff and force from

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Speaker 4: tomorrow while you and India are among those trying to

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Speaker 4: seek clarity on their trade deals, We've got our trades

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Speaker 4: are Brandon Murray with us for more on this this morning. Brendon,

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Speaker 4: What do we know now this Monday morning about what

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Speaker 4: the US plans to do in terms of reinstating the

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Speaker 4: tariffs that we're struck down on Friday?

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Speaker 10: All we heard over the weekend from the US Trade

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Speaker 10: Representative Jamis and Greer is that the administration is trying

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Speaker 10: to maintain some continuity with its overall trade policies. That

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Speaker 10: means his office, the USTR is going to undertake these

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Speaker 10: investigations called three zero one investigations, which are essentially industry

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Speaker 10: specific or country specific, and taking a look at what

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Speaker 10: the US would consider to be unfair trade practices, investigate those,

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Speaker 10: consult with those countries, and then come up with the

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Speaker 10: justification for tariffs being applied in those cases. So those

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Speaker 10: don't take days. Those can take weeks at the very least,

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Speaker 10: and usually many months. And so the administrations is saying

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Speaker 10: that this fifteen percent across the board global tariff is

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Speaker 10: the bridge to which they will get to those other

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Speaker 10: kinds of tariffs, and so that is what it can

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Speaker 10: create some uncertainty for businesses or for governments that have

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Speaker 10: these deals. What is going to be the tariff rate

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Speaker 10: that they wind up with after all this is said

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Speaker 10: and done.

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Speaker 3: Yeah, So the European Commission says that it wants clarity

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Speaker 3: and the sheriff, the Trade Committee in Parliament in Europe

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Speaker 3: wants to freeze ratification until that clarity emerges. What does

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Speaker 3: it mean then for the EU and other US trade

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Speaker 3: partners around the world.

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Speaker 10: Yeah, exactly, the EU and the UK are still exposed

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Speaker 10: to the car and the aluminum and steel tariffs. Those

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Speaker 10: are on under separate authorities, so those could be raised

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Speaker 10: if the Europeans, you know, thought that they could back

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Speaker 10: out of this deal to the deals that they have

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Speaker 10: with the Trump administration. So the Trump administration is telling

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Speaker 10: trading partners just relax a bude by the deal that

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Speaker 10: you that you've signed and everything will be fine. But

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Speaker 10: if you're sitting on the receiving end of that, you

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Speaker 10: don't really know that what you're going to wind up

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Speaker 10: with at the end is something that you agree to

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Speaker 10: in these particular agreements. So it's creating a layer of confusion.

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Speaker 10: There are a lot of other issues that need clarity,

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Speaker 10: including the refunds from tariffs, which are you know, one

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Speaker 10: hundred and seventy billion dollars worth of revenue that the

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Speaker 10: governor has collected from American importers. And you know that's

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Speaker 10: going to cause a lot of blowback domestically for President

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Speaker 10: Trump too, if they can't figure out a way to

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Speaker 10: do that in orderly fashion.

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Speaker 4: Okay, Brandon, thanks so much for bringing us up to

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Speaker 4: date this Monday morning. That's our trades are, Brandon Murray.

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Speaker 4: Stay with us. More from Bloomberg Daybreak Europe coming up

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Speaker 4: after this Now.

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Speaker 3: A German pension fund's loss of half its assets is

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Speaker 3: raising questions about the management and regulation of a key

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Speaker 3: pillar of the country's retirement system. Our European finance reporter

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Speaker 3: Nicholas Comfort joins us now for more on this story. Nicholas, So,

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Speaker 3: the fund, known as VZB is a pension fund for

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Speaker 3: dentists in Berlin.

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Speaker 2: What exactly happened to it?

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Speaker 11: They had leadership which thought they could walk on water.

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Speaker 11: As one other investor put it to us, they invested

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Speaker 11: in all kinds of businesses that, first of all, that

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Speaker 11: they weren't probably allowed to invest in. They're supposed to

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Speaker 11: be investing on based on very conservative principles in terms

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Speaker 11: of the liquidity and the safety of the investments that

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Speaker 11: they make. But they thought, no, no, we know better,

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Speaker 11: and they plowed money into a California recycling company at

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Speaker 11: Northern German shrimp farm and as as one investor put

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Speaker 11: it to us, they basically behaved more like a family

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Speaker 11: office than they did a conservative pension fund. And last year,

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Speaker 11: late last year it was it was confirmed that they

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Speaker 11: expected size of the losses amount to half the two

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Speaker 11: point two billion euros of assets that they have. And

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Speaker 11: so it's it's the Berlin dentists that they probably will

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Speaker 11: see their their pensions reduced by this.

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Speaker 4: So howe authorities reacted to this.

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Speaker 11: So the Berlin prosecutors have said on the record that

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Speaker 11: they are looking into this, and they haven't said it's

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Speaker 11: exactly whom they who they are probing, but but it's

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Speaker 11: it's probably the people who took the investment decisions are

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Speaker 11: relevant actors for the prosecutors.

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Speaker 1: On that.

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Speaker 11: We also know that the the the Berlin ministry that's

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Speaker 11: supposed to oversee them. We have heard from other pension

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Speaker 11: funds that they they have become more active as you

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Speaker 11: would hope and expect after an event like this. But

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Speaker 11: it's also kicked off at debate in Germany buzz of

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Speaker 11: are these these special hyper pension funds who are overseen

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Speaker 11: largely by local ministries? Does that make sense the system?

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Speaker 11: Or should they be put under baffin the Germany Wide

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Speaker 11: Financial Markets regulator. That's a political decision, but the regulator

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Speaker 11: itself Baffin has said.

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Speaker 2: That yeah, we can't help.

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Speaker 11: But notice that there are a cluster of losses, of

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Speaker 11: unpleasant losses at this type of fund.

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Speaker 3: Yeah, it's a huge year, isn't it. So then do

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Speaker 3: you think it might lead to bigger change?

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Speaker 2: Very briefly so, I think it's possible.

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Speaker 11: Yes, friedish MERT's our chancelator in Germany is kicking off

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Speaker 11: a wider overhaul the pension system. It's possible that there'll

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Speaker 11: be some kind of structural change, but also that maybe

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Speaker 11: they'll be in terms of the supervision these funds, that

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Speaker 11: they'll see that the system isn't fit for purpose as

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Speaker 11: it stands.

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Speaker 3: Now.

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Speaker 4: This is Bloomberg Daybreak Europe, your morning brief on the

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