1 00:00:00,120 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,440 --> 00:00:12,120 Speaker 2: This is the Bloomberg dayba qu At podcast. Good Morning 3 00:00:12,200 --> 00:00:15,680 Speaker 2: is Wednesday, the eleventh of February. I'm Caroline Hepkeitt in London. 4 00:00:15,560 --> 00:00:18,720 Speaker 3: And I'm Stephen Carolin Brussels. Coming up today. At least 5 00:00:18,840 --> 00:00:22,560 Speaker 3: nine victims are killed in one of Canada's deadliest school shootings, 6 00:00:22,800 --> 00:00:25,160 Speaker 3: with the suspected perpetrator also dead. 7 00:00:25,600 --> 00:00:29,240 Speaker 2: The European Council President tells us that European Union leaders 8 00:00:29,280 --> 00:00:32,400 Speaker 2: are finally ready to fully integrate their markets. 9 00:00:32,800 --> 00:00:36,760 Speaker 3: Plus a one trillion dollar flex, Polish companies expand into 10 00:00:36,760 --> 00:00:39,760 Speaker 3: Western Europe with a focus on Germany. In an M 11 00:00:39,760 --> 00:00:40,680 Speaker 3: and a boom. 12 00:00:41,080 --> 00:00:43,360 Speaker 4: Let's start with a roundup of our top stories. 13 00:00:44,000 --> 00:00:46,120 Speaker 3: A shooting at a school in the Canadian province of 14 00:00:46,159 --> 00:00:49,200 Speaker 3: British Columbia has left eight people dead, including a woman 15 00:00:49,240 --> 00:00:52,360 Speaker 3: who police believed to be the shooter. Authority say two 16 00:00:52,440 --> 00:00:55,400 Speaker 3: more people were found dead at a nearby home. British 17 00:00:55,400 --> 00:00:59,080 Speaker 3: Columbia Premier David eb told reporters that police officers reached 18 00:00:59,120 --> 00:01:01,840 Speaker 3: the school within two minutes. He spoke at a press 19 00:01:01,840 --> 00:01:03,040 Speaker 3: conference after the shooting. 20 00:01:03,720 --> 00:01:05,280 Speaker 5: It's hard to know what to say on a night 21 00:01:05,400 --> 00:01:07,480 Speaker 5: like tonight. This is the kind of thing that feels 22 00:01:07,480 --> 00:01:10,680 Speaker 5: like it happens in other places and not close to 23 00:01:10,760 --> 00:01:13,800 Speaker 5: home in a way that this feels for so many 24 00:01:13,800 --> 00:01:15,240 Speaker 5: British Columbians and Canadians. 25 00:01:15,920 --> 00:01:18,080 Speaker 3: David eb was speaking as police say they are not 26 00:01:18,160 --> 00:01:21,240 Speaker 3: yet releasing the identity of the suspected attacker. In a 27 00:01:21,280 --> 00:01:24,520 Speaker 3: statement on social media, Canadian Prime Minister Mark Carney said 28 00:01:24,520 --> 00:01:27,679 Speaker 3: he was devastated by the mass shooting, which is Canada's 29 00:01:27,680 --> 00:01:31,480 Speaker 3: deadliest since twenty twenty. Carney's office said he's suspending a 30 00:01:31,520 --> 00:01:34,040 Speaker 3: planned trip to Germany for the Munich Security Conference. 31 00:01:35,200 --> 00:01:38,600 Speaker 2: The European Council president has told Bloomberg that the EU 32 00:01:38,760 --> 00:01:43,080 Speaker 2: must review its powerful competition rules to boost the bloc's economy. 33 00:01:43,280 --> 00:01:45,959 Speaker 2: Antonio Costa was speaking ahead of a gathering of EU 34 00:01:46,040 --> 00:01:49,680 Speaker 2: leaders this week, which will focus on improving competitiveness as 35 00:01:49,680 --> 00:01:53,640 Speaker 2: the region faces challenges from the United States and China. 36 00:01:54,400 --> 00:01:55,040 Speaker 6: We need to. 37 00:01:54,960 --> 00:01:58,680 Speaker 7: Look at our competition rules because it's clear that we 38 00:01:58,800 --> 00:02:02,640 Speaker 7: need to at the same time protect our consumers to 39 00:02:02,720 --> 00:02:06,800 Speaker 7: ensure a vibrant competition in lawer single market, but at 40 00:02:06,800 --> 00:02:10,520 Speaker 7: the same time allow companies to scale up to be 41 00:02:10,600 --> 00:02:13,440 Speaker 7: competitive in the global market. 42 00:02:13,840 --> 00:02:16,760 Speaker 2: The European Council president was speaking after the German and 43 00:02:16,880 --> 00:02:21,120 Speaker 2: Italian government's warned you must act now on reforming its 44 00:02:21,200 --> 00:02:25,480 Speaker 2: single market. In a paper circulated ahead of tomorrow's leaders meeting, 45 00:02:25,560 --> 00:02:28,880 Speaker 2: they called, among other things, for the EU to loosen 46 00:02:29,000 --> 00:02:32,920 Speaker 2: merger rules, allowing European companies to scale up and rival 47 00:02:33,000 --> 00:02:34,440 Speaker 2: America's tech giants. 48 00:02:35,160 --> 00:02:37,880 Speaker 3: The European Parliament is moving closer to approving the ease 49 00:02:37,960 --> 00:02:40,960 Speaker 3: trade deal with the United States. Senior lawmakers have agreed 50 00:02:41,000 --> 00:02:43,000 Speaker 3: to back the deal ahead of a vote, but they've 51 00:02:43,000 --> 00:02:45,400 Speaker 3: added a sunset clause to the pact, which was he'd 52 00:02:45,440 --> 00:02:48,240 Speaker 3: expire in March twenty twenty eight, in an effort to 53 00:02:48,280 --> 00:02:50,680 Speaker 3: force the US to lower its fifty percent tariff on 54 00:02:50,720 --> 00:02:54,280 Speaker 3: steel and aluminium products. Months have passed since both sides 55 00:02:54,280 --> 00:02:57,600 Speaker 3: agreed to dial down trade tensions, compromising on a fifteen 56 00:02:57,639 --> 00:03:00,920 Speaker 3: percent tariff on EU goods entering the United States. The 57 00:03:01,000 --> 00:03:03,200 Speaker 3: deal has faced a rocky path to approval in the 58 00:03:03,240 --> 00:03:06,120 Speaker 3: European Parliament. A vote is expected on the twenty fourth 59 00:03:06,160 --> 00:03:06,800 Speaker 3: of February. 60 00:03:07,240 --> 00:03:10,680 Speaker 2: Emails released by the US Justice Department show Elon Musk's 61 00:03:10,720 --> 00:03:14,320 Speaker 2: brother Kimball Musk, was connected with at least two women 62 00:03:14,480 --> 00:03:18,959 Speaker 2: through Jeffrey Epstein, several years after the disgraced financier pleaded 63 00:03:18,960 --> 00:03:22,519 Speaker 2: guilty to sex crimes. The emails show that the director 64 00:03:22,560 --> 00:03:27,120 Speaker 2: at Tesla and Epstein discussed party plans, relationships, and a 65 00:03:27,160 --> 00:03:31,840 Speaker 2: possible visit to Epstein's island. Kimball Musk released a statement 66 00:03:31,919 --> 00:03:34,680 Speaker 2: saying that his only meeting with Epstein was in his 67 00:03:34,800 --> 00:03:37,120 Speaker 2: New York office during the day and that he never 68 00:03:37,440 --> 00:03:38,560 Speaker 2: went to his island. 69 00:03:39,360 --> 00:03:42,000 Speaker 3: The US Commerce Secretary Horod Lutnick has also come under 70 00:03:42,000 --> 00:03:44,760 Speaker 3: fire for his appearance in the files. Lutnick said he 71 00:03:44,840 --> 00:03:48,720 Speaker 3: did visit Epstein's private island in twenty twelve, after Epstein 72 00:03:48,800 --> 00:03:51,400 Speaker 3: was convicted as a sex offender. Here is an exchange 73 00:03:51,400 --> 00:03:54,920 Speaker 3: between Lutnick and Maryland Senator Chris van Holland, did. 74 00:03:54,760 --> 00:03:58,800 Speaker 8: You, in fact make the visit to Jeffrey Epstein's private island. 75 00:04:00,360 --> 00:04:02,920 Speaker 8: I did have lunch with him as I was on 76 00:04:02,960 --> 00:04:06,840 Speaker 8: a boat going across on a family vacation. My wife 77 00:04:07,120 --> 00:04:10,880 Speaker 8: was with me, as were my four children and nanny's 78 00:04:11,120 --> 00:04:15,320 Speaker 8: I had another couple with They were there as well 79 00:04:15,440 --> 00:04:19,520 Speaker 8: with their children, and we had lunch on the island. 80 00:04:20,440 --> 00:04:22,400 Speaker 3: That Nik has face and calls to resign over the 81 00:04:22,440 --> 00:04:25,719 Speaker 3: relationship with Epstein, since the files show his ties to 82 00:04:25,800 --> 00:04:29,640 Speaker 3: disgraced financier were more extensive than he previously revealed. The 83 00:04:29,680 --> 00:04:32,560 Speaker 3: White House said that President Trump has no plans to 84 00:04:32,600 --> 00:04:34,600 Speaker 3: remove Lutnik from his post. 85 00:04:35,400 --> 00:04:38,839 Speaker 2: Investment in the UK FinTechs plummeted by more than twenty 86 00:04:38,839 --> 00:04:41,400 Speaker 2: percent last year to the lowest level since the start 87 00:04:41,480 --> 00:04:44,840 Speaker 2: of the COVID nineteen pandemic. Bluebog's EU and Parts has 88 00:04:44,880 --> 00:04:45,440 Speaker 2: the story. 89 00:04:46,080 --> 00:04:50,120 Speaker 9: The UK's financial technology sector attracted just shy of eleven 90 00:04:50,200 --> 00:04:53,120 Speaker 9: billion dollars last year, down from about thirteen and a 91 00:04:53,160 --> 00:04:55,640 Speaker 9: half billion dollars in twenty twenty four. 92 00:04:56,160 --> 00:04:57,440 Speaker 4: The numbers come from. 93 00:04:57,240 --> 00:05:01,400 Speaker 9: A KPMG report citing pitch Book data. In total, four 94 00:05:01,480 --> 00:05:04,520 Speaker 9: hundred and eighteen fintech deals closed last year with a 95 00:05:04,560 --> 00:05:07,840 Speaker 9: blockbuster of four billion dollar fund raising by Revolute at 96 00:05:07,839 --> 00:05:11,120 Speaker 9: evaluation of seventy five billion dollars, making up a big 97 00:05:11,200 --> 00:05:14,680 Speaker 9: chunk of the total raised. The UK's fintech sector was 98 00:05:14,760 --> 00:05:17,359 Speaker 9: dwarfed by the US, which accounted for close to half 99 00:05:17,440 --> 00:05:21,040 Speaker 9: of all cash raised globally, but to unline the country's relevance, 100 00:05:21,160 --> 00:05:25,440 Speaker 9: UK fintech's attracted more funding than those in France Germany, Belgium, 101 00:05:25,440 --> 00:05:30,039 Speaker 9: the Nordics Island, China and Brazil combined In London, I'm 102 00:05:30,040 --> 00:05:31,880 Speaker 9: ewing pots Bloomberg Radio, and. 103 00:05:31,839 --> 00:05:33,960 Speaker 3: Those are your top stories on the market. Zero stocks 104 00:05:34,000 --> 00:05:36,640 Speaker 3: fifty features are flat at the moment. Forty one hundred 105 00:05:36,680 --> 00:05:38,440 Speaker 3: fatures are two tents of one percent higher. We did 106 00:05:38,520 --> 00:05:41,000 Speaker 3: see Asian equities hit a record high earlier at the 107 00:05:41,040 --> 00:05:44,480 Speaker 3: MSCIS Specific index outside of Japan by one point one percent. 108 00:05:44,520 --> 00:05:46,880 Speaker 3: The Blueberg Dollar Spot Index weeker ahead of today's US 109 00:05:46,960 --> 00:05:49,359 Speaker 3: jobs data by two tenths of one percent. The Japanese 110 00:05:49,400 --> 00:05:52,880 Speaker 3: yen is eight tenths stronger as one fifty three twenty two. 111 00:05:53,360 --> 00:05:56,120 Speaker 2: Those are the markets. Now, let's get an updates on 112 00:05:56,200 --> 00:06:00,320 Speaker 2: the mass school shooting in Canada at tumbler Ridge Secondtry 113 00:06:00,360 --> 00:06:01,680 Speaker 2: School in British Columbia. 114 00:06:02,080 --> 00:06:03,000 Speaker 4: Joining US now for more. 115 00:06:03,040 --> 00:06:06,720 Speaker 2: And this is Bloomberg's Washington Deputy Bureau Chief, Lord Davison. 116 00:06:07,160 --> 00:06:09,039 Speaker 2: Good morning, Law of what do we know so far 117 00:06:09,120 --> 00:06:12,000 Speaker 2: about this shooting and about the perpetrator? 118 00:06:12,760 --> 00:06:15,400 Speaker 1: So this shooting is is summing up to be one 119 00:06:15,440 --> 00:06:19,000 Speaker 1: of the worst in Canada's history. Ten left dead, including 120 00:06:19,040 --> 00:06:21,479 Speaker 1: the shooter, as well as twenty five or so that 121 00:06:21,520 --> 00:06:24,640 Speaker 1: have been injured in this attack. There are not a 122 00:06:24,680 --> 00:06:27,880 Speaker 1: lot of details yet about the shooter. According to a 123 00:06:27,880 --> 00:06:30,239 Speaker 1: public safety alert that went out to residence in the area, 124 00:06:30,320 --> 00:06:33,240 Speaker 1: the shooter was identified as a female with brown hair 125 00:06:33,480 --> 00:06:35,600 Speaker 1: wearing a dress, but the authorities have not given any 126 00:06:35,640 --> 00:06:38,839 Speaker 1: other names so far about who this could be age 127 00:06:39,520 --> 00:06:41,120 Speaker 1: or if they have any connection to the area. 128 00:06:42,600 --> 00:06:46,000 Speaker 3: What have we heard from the Canadian authorities? The Prime 129 00:06:46,000 --> 00:06:48,240 Speaker 3: Minister is suspending a plan trip to Germany. 130 00:06:49,040 --> 00:06:51,719 Speaker 1: Yes, there's really been an outpouring of support from leaders 131 00:06:51,760 --> 00:06:54,840 Speaker 1: at all levels, from the province level, local level, and 132 00:06:55,320 --> 00:06:57,880 Speaker 1: of course at the national level. This is a big 133 00:06:57,920 --> 00:07:00,880 Speaker 1: deal for Carney to spend this trip this, you know, 134 00:07:00,920 --> 00:07:03,400 Speaker 1: sort of as an indication of just how seriously everyone 135 00:07:03,400 --> 00:07:06,040 Speaker 1: across Canada is taking the shooting. You know, he was 136 00:07:06,080 --> 00:07:09,200 Speaker 1: scheduled to go to Germany for the Munich Security Conference 137 00:07:09,200 --> 00:07:10,880 Speaker 1: here in just a couple of days. This is really 138 00:07:10,920 --> 00:07:13,480 Speaker 1: a notable time for Carney because he you know, has 139 00:07:13,720 --> 00:07:17,160 Speaker 1: just in recent days taken a very strident approach against 140 00:07:17,160 --> 00:07:20,120 Speaker 1: the US, giving a very powerful speech at at Davos, 141 00:07:20,480 --> 00:07:23,679 Speaker 1: and you know, kind of really taking a big place 142 00:07:23,680 --> 00:07:25,440 Speaker 1: on the national stage as there's sort of the the 143 00:07:25,440 --> 00:07:29,000 Speaker 1: powers are rebalancing here between the US, Asia and and 144 00:07:29,000 --> 00:07:30,880 Speaker 1: and Europe, and so this is a big deal for 145 00:07:30,960 --> 00:07:31,800 Speaker 1: him to step back from this. 146 00:07:32,320 --> 00:07:35,920 Speaker 2: M Mass shootings do, sadly occur in the United States. 147 00:07:35,920 --> 00:07:38,120 Speaker 2: They're far less common though in Canada. 148 00:07:39,000 --> 00:07:41,880 Speaker 1: Yes, this is you know, uh, unfortunately for Canada and 149 00:07:41,960 --> 00:07:44,000 Speaker 1: unfortunately for the US, has been you know, a trend 150 00:07:44,000 --> 00:07:46,680 Speaker 1: that's been going on for some time. A lot of 151 00:07:46,720 --> 00:07:50,800 Speaker 1: experts attributed this to differences and how gun laws are 152 00:07:51,080 --> 00:07:52,280 Speaker 1: in between the two countries. 153 00:07:52,680 --> 00:07:54,320 Speaker 4: Guns are prevalent, there are lots. 154 00:07:54,120 --> 00:07:57,200 Speaker 1: Of gun owners both sides of the border here, but 155 00:07:57,280 --> 00:07:59,840 Speaker 1: in the US it's treated as a constitutional right. It's 156 00:08:00,040 --> 00:08:02,160 Speaker 1: and into the US Constitution, and that's made it very 157 00:08:02,200 --> 00:08:06,360 Speaker 1: hard for US policymakers to be able to restrict gun 158 00:08:06,400 --> 00:08:10,280 Speaker 1: ownership and put other limits on gun owners. In Canada, 159 00:08:10,320 --> 00:08:13,080 Speaker 1: for example, they have a lot more restrictions in terms 160 00:08:13,120 --> 00:08:15,200 Speaker 1: of these red flag laws that allow guns to be 161 00:08:15,240 --> 00:08:18,240 Speaker 1: taken away for people with mental health or other concerning 162 00:08:18,280 --> 00:08:22,000 Speaker 1: behavior issues. There's a national registry and there's just more 163 00:08:22,080 --> 00:08:24,920 Speaker 1: sort of protections that a lot of experts have credited 164 00:08:24,960 --> 00:08:28,160 Speaker 1: to lessening the number of unfortunate gun incidents, including mass 165 00:08:28,160 --> 00:08:29,640 Speaker 1: shootings like we've seen just recently. 166 00:08:30,240 --> 00:08:32,160 Speaker 3: Okay, Laura, thank you very much for bringing us up 167 00:08:32,200 --> 00:08:35,000 Speaker 3: to date on the latest. That's our Washington Deputy Bureau Chief, 168 00:08:35,080 --> 00:08:37,199 Speaker 3: Laura Davison. There now to. 169 00:08:37,920 --> 00:08:42,000 Speaker 2: A significant conversation our attention moving to Europe. Could this 170 00:08:42,280 --> 00:08:46,960 Speaker 2: be the moment that European leaders take decisive steps towards 171 00:08:46,960 --> 00:08:50,319 Speaker 2: showing up their economy. Antonio Costa, who chairs the meetings 172 00:08:50,360 --> 00:08:52,880 Speaker 2: of EU leaders, has been speaking to Bloomberg ahead of 173 00:08:52,880 --> 00:08:56,480 Speaker 2: an informal summit that's taking place tomorrow, which will focus 174 00:08:56,480 --> 00:08:59,360 Speaker 2: on trying to improve competitiveness in the face of the 175 00:08:59,480 --> 00:09:03,000 Speaker 2: US and China. Our chief correspondent Oliver Krook spoke to 176 00:09:03,040 --> 00:09:05,880 Speaker 2: the European Council President and he joins us this morning. 177 00:09:05,960 --> 00:09:08,400 Speaker 4: Hi Oli. So it's been eighteen. 178 00:09:08,080 --> 00:09:12,079 Speaker 2: Months since the DRUGI report that talked about a reform 179 00:09:12,200 --> 00:09:16,560 Speaker 2: being existential, a year since Donald Trump took office and 180 00:09:16,640 --> 00:09:20,640 Speaker 2: started threatening tariffs on the EU. Is this the big 181 00:09:20,679 --> 00:09:23,640 Speaker 2: moment for the EU to boost its own economy? 182 00:09:23,720 --> 00:09:26,439 Speaker 10: I mean, that's certainly the point that Antonio Costa is making, 183 00:09:26,440 --> 00:09:28,280 Speaker 10: and really the ambition that he is trying to lay 184 00:09:28,280 --> 00:09:30,640 Speaker 10: out as EU Council President and trying to advance a 185 00:09:30,640 --> 00:09:34,120 Speaker 10: lot of these very clunky, very complex, but very important 186 00:09:34,120 --> 00:09:37,640 Speaker 10: reforms within the European Union. He said, basically last year 187 00:09:37,720 --> 00:09:40,880 Speaker 10: was all about defense. They managed to do last year 188 00:09:41,040 --> 00:09:42,960 Speaker 10: in a couple of months what they've failed to do 189 00:09:43,040 --> 00:09:45,160 Speaker 10: in a couple of decades. What he's referring to there, 190 00:09:45,200 --> 00:09:49,520 Speaker 10: presumably is the NATO spend, for example, getting European NATO 191 00:09:49,559 --> 00:09:51,599 Speaker 10: countries to about five percent of spending three and a 192 00:09:51,640 --> 00:09:54,080 Speaker 10: half percent of that very clearly on defense, but also 193 00:09:54,120 --> 00:09:56,640 Speaker 10: on trade deals. He managed to get forward two massive 194 00:09:56,640 --> 00:09:59,280 Speaker 10: trade deals that were basically in the works for twenty years, 195 00:09:59,280 --> 00:10:01,760 Speaker 10: in India and Mercer Source, so those are going to 196 00:10:01,760 --> 00:10:04,239 Speaker 10: be the victories. Now it kind of gets more complicated 197 00:10:04,280 --> 00:10:06,959 Speaker 10: on competitiveness because that's when you get into very thorny issues, 198 00:10:07,000 --> 00:10:09,440 Speaker 10: you know, m and A, across borders, all of those 199 00:10:09,440 --> 00:10:11,319 Speaker 10: sorts of things. And he said that if last year 200 00:10:11,400 --> 00:10:14,319 Speaker 10: was about defense, this year is really about competitiveness. 201 00:10:14,320 --> 00:10:15,760 Speaker 11: Have a listened to what he had to say about that. 202 00:10:16,640 --> 00:10:20,600 Speaker 7: We need to focus this year on competitiveness with the 203 00:10:20,679 --> 00:10:24,240 Speaker 7: same energy that last year we focus on defense. And 204 00:10:24,320 --> 00:10:27,240 Speaker 7: for this we need to approve as soon as possible 205 00:10:27,600 --> 00:10:31,960 Speaker 7: a roadmap to complete and deepening the Single market that 206 00:10:32,120 --> 00:10:35,360 Speaker 7: means that we need to create a real single market 207 00:10:35,480 --> 00:10:39,360 Speaker 7: on energy, on telecoms, we need to approve the so 208 00:10:39,520 --> 00:10:44,520 Speaker 7: called twenty ACE regime to have a simple and single 209 00:10:44,880 --> 00:10:49,080 Speaker 7: company law across all the European Union. We need to 210 00:10:49,160 --> 00:10:54,640 Speaker 7: remove several internal barriers that remains in the single market. 211 00:10:54,840 --> 00:10:59,079 Speaker 7: We need to continue to cut red tape. The Commission 212 00:10:59,120 --> 00:11:04,360 Speaker 7: has already is ented ten package to remove red tape, 213 00:11:04,400 --> 00:11:07,280 Speaker 7: but we need to do more. And we need to 214 00:11:07,440 --> 00:11:13,400 Speaker 7: also to tackling our external dependencies on critical row materials, 215 00:11:13,840 --> 00:11:19,360 Speaker 7: to secrize our supply chain and of course to find 216 00:11:19,600 --> 00:11:24,959 Speaker 7: new markets to export. Because the the European Union powerouse 217 00:11:25,040 --> 00:11:30,200 Speaker 7: own trade. We are by far the largest economic block 218 00:11:30,480 --> 00:11:33,559 Speaker 7: on trade and we need to build on this to 219 00:11:33,600 --> 00:11:35,320 Speaker 7: increase our competitiveness. 220 00:11:35,600 --> 00:11:38,240 Speaker 3: So whatever the prescription is clear, what needs to be 221 00:11:38,320 --> 00:11:41,080 Speaker 3: done UNTILIO cost laying some of the priorities there. But 222 00:11:41,320 --> 00:11:43,440 Speaker 3: is there the political will to do it? 223 00:11:43,760 --> 00:11:45,240 Speaker 10: Yeah, and I think we used to sort of hasten 224 00:11:45,320 --> 00:11:47,320 Speaker 10: to add that on many of that very long laundry 225 00:11:47,360 --> 00:11:49,560 Speaker 10: list that he sort of enumerated there, whether it's everything 226 00:11:49,600 --> 00:11:52,720 Speaker 10: from sort of telecoms between the European countries the capital 227 00:11:52,760 --> 00:11:55,440 Speaker 10: markets Union, very little progress has been made, and I 228 00:11:55,440 --> 00:11:57,480 Speaker 10: think something like the Capital Markets Union. 229 00:11:57,520 --> 00:11:59,320 Speaker 11: You know, I asked them at the end of the interview. 230 00:11:59,080 --> 00:12:01,480 Speaker 10: Twelve months from now, let's be concrete, if you sit 231 00:12:01,520 --> 00:12:03,920 Speaker 10: down here, what will you achieved. He sort of was 232 00:12:03,920 --> 00:12:05,480 Speaker 10: hedged himself a little bit because of course he doesn't 233 00:12:05,480 --> 00:12:07,040 Speaker 10: want to front run a lot of these world leaders, 234 00:12:07,040 --> 00:12:09,079 Speaker 10: but it seems that really his priority is going to 235 00:12:09,120 --> 00:12:11,920 Speaker 10: be on cutting this red tape and also potentially moving 236 00:12:11,920 --> 00:12:13,960 Speaker 10: forward on the capital market. So that's going to be 237 00:12:13,960 --> 00:12:16,480 Speaker 10: the big thing. What I think Macohn and many others 238 00:12:16,480 --> 00:12:18,280 Speaker 10: and many and macohonn coming out over the last couple 239 00:12:18,320 --> 00:12:20,560 Speaker 10: of days calling this the Greenland moment, and he's saying 240 00:12:20,559 --> 00:12:24,040 Speaker 10: that this Greenland moment pushing Europeans together, should encourage them 241 00:12:24,080 --> 00:12:26,520 Speaker 10: to basically get joint debt together to really get these 242 00:12:26,520 --> 00:12:28,800 Speaker 10: programs off the ground. As you know, Stephen, this is 243 00:12:28,800 --> 00:12:31,679 Speaker 10: always a very sort of spirited debate at the EU level. 244 00:12:31,800 --> 00:12:32,480 Speaker 11: But what I thought was. 245 00:12:32,480 --> 00:12:35,320 Speaker 10: Also very interesting talking to Antonio Costa, because we had 246 00:12:35,320 --> 00:12:38,040 Speaker 10: that speech from Markarney at Davos where he's talking about 247 00:12:38,160 --> 00:12:41,160 Speaker 10: basically rousing the Middle Powers, bringing them together, and that 248 00:12:41,280 --> 00:12:45,800 Speaker 10: basically bringing a new multilateralism into being. Antonio Costa's job 249 00:12:45,960 --> 00:12:48,880 Speaker 10: is to rally Middle Powers twenty seven member states for 250 00:12:48,960 --> 00:12:51,719 Speaker 10: collective action. He knows how difficult that is that is 251 00:12:51,760 --> 00:12:53,640 Speaker 10: going to be, and so I asked him basically, when 252 00:12:53,679 --> 00:12:55,960 Speaker 10: you hear these sort of theories and these ideas as 253 00:12:56,000 --> 00:12:59,760 Speaker 10: described by Mark Karney pragmatically, what does that look like? 254 00:13:00,240 --> 00:13:02,119 Speaker 11: The way you had to say about that, Well. 255 00:13:01,920 --> 00:13:07,120 Speaker 7: I'm also pessimistic as McCarney has been, and I don't 256 00:13:07,160 --> 00:13:10,760 Speaker 7: say that the rules based order is diet and we 257 00:13:10,880 --> 00:13:14,080 Speaker 7: need and we need a new one of course is 258 00:13:14,120 --> 00:13:17,480 Speaker 7: in the threat, but I think we are strong enough 259 00:13:17,720 --> 00:13:21,680 Speaker 7: to protect the rules based order because we don't have 260 00:13:21,760 --> 00:13:24,000 Speaker 7: a real alternative to the rules based order. 261 00:13:24,120 --> 00:13:25,559 Speaker 6: The alternative is the chaos. 262 00:13:26,240 --> 00:13:30,439 Speaker 7: And that's why like manded patterns like the European Union, 263 00:13:30,920 --> 00:13:37,959 Speaker 7: United Kingdom, Canada, Japan and other countries are very strong 264 00:13:38,320 --> 00:13:41,280 Speaker 7: upholding the international rules based order. 265 00:13:41,520 --> 00:13:43,360 Speaker 6: One of the reasons because. 266 00:13:43,080 --> 00:13:46,200 Speaker 7: You are investing a lot in these trade agreements is 267 00:13:46,240 --> 00:13:51,760 Speaker 7: because we need a rules trade order to ensure predictability 268 00:13:52,400 --> 00:13:57,200 Speaker 7: to the economic agents. It's impossible to have a strong 269 00:13:57,400 --> 00:14:02,439 Speaker 7: economic growth in with certain and we need to provide certainty. 270 00:14:02,600 --> 00:14:06,320 Speaker 7: And the best way to provide certainty is to protect 271 00:14:06,440 --> 00:14:09,880 Speaker 7: these international rules based order also in Traue. 272 00:14:10,160 --> 00:14:14,120 Speaker 2: So no rules based order means chaos in Costa's view, 273 00:14:14,640 --> 00:14:17,920 Speaker 2: but an illustration of the complexities of the decision making 274 00:14:17,960 --> 00:14:18,720 Speaker 2: that you pointed to. 275 00:14:18,720 --> 00:14:19,000 Speaker 4: Oli. 276 00:14:19,040 --> 00:14:21,720 Speaker 2: The European Parliament has moved ahead with its process to 277 00:14:21,760 --> 00:14:25,480 Speaker 2: approve a trade deal with the US, but with some 278 00:14:25,680 --> 00:14:26,960 Speaker 2: additional conditions. 279 00:14:27,200 --> 00:14:28,880 Speaker 10: Yeah, that's right, I mean, and again just sort of 280 00:14:28,880 --> 00:14:30,680 Speaker 10: doing a sort of fast forward of the last year, 281 00:14:30,680 --> 00:14:32,920 Speaker 10: because this all happened in the last twelve months. Liberation 282 00:14:33,040 --> 00:14:35,560 Speaker 10: Day on in April, that's when the negotiations began. The 283 00:14:35,600 --> 00:14:37,720 Speaker 10: deal was struck in July, a turn beret between the 284 00:14:37,760 --> 00:14:39,480 Speaker 10: EU and the United States. It was supposed to be 285 00:14:39,600 --> 00:14:42,280 Speaker 10: ratified at the beginning of this year, and then we've 286 00:14:42,320 --> 00:14:44,720 Speaker 10: got what I guess we can call the Greenland detour, 287 00:14:44,760 --> 00:14:47,360 Speaker 10: where basically everything was put on hold because you can't 288 00:14:47,360 --> 00:14:49,760 Speaker 10: really agree to a trade deal while you're having more 289 00:14:49,840 --> 00:14:51,000 Speaker 10: tariff threats. 290 00:14:50,600 --> 00:14:51,160 Speaker 11: On the EU. 291 00:14:51,520 --> 00:14:53,520 Speaker 10: We have now at the level where the Parliament has 292 00:14:53,520 --> 00:14:55,480 Speaker 10: agreed to move forward on this, to vote on this. 293 00:14:55,560 --> 00:14:56,680 Speaker 11: There was actually some doubt. 294 00:14:56,680 --> 00:14:58,880 Speaker 10: There was some debate at the Parliament whether or not 295 00:14:58,920 --> 00:15:01,400 Speaker 10: to do it, but they overcome those and have agreed 296 00:15:01,440 --> 00:15:03,920 Speaker 10: to move forward, and basically what they're now looking at 297 00:15:04,000 --> 00:15:06,840 Speaker 10: is trying to create an escape clause to this trade 298 00:15:06,880 --> 00:15:09,640 Speaker 10: agreement in order for the Europeans to be able to 299 00:15:09,720 --> 00:15:13,320 Speaker 10: renegotiate it in the future in basically March of twenty 300 00:15:13,360 --> 00:15:15,720 Speaker 10: twenty eight. Now what they are trying to achieve now 301 00:15:15,720 --> 00:15:18,360 Speaker 10: there's sort of top priority on trades to also reduce 302 00:15:18,400 --> 00:15:21,160 Speaker 10: the steal and aluminum tariffs because those are not covered 303 00:15:21,200 --> 00:15:23,880 Speaker 10: by the current agreement. So the current agreement basically puts 304 00:15:23,880 --> 00:15:26,520 Speaker 10: fifteen percent tariffs across the board, you still have fifty 305 00:15:26,520 --> 00:15:29,480 Speaker 10: percent tariffs on steal and aluminum, which the Europeans are 306 00:15:29,600 --> 00:15:31,680 Speaker 10: very unhappy about. So they want to continue to try 307 00:15:31,680 --> 00:15:34,120 Speaker 10: to negotiate on that, and if they basically can't get 308 00:15:34,120 --> 00:15:35,920 Speaker 10: an agreement, they want to be able to say, hey, 309 00:15:36,080 --> 00:15:38,480 Speaker 10: we're going to renegotiate this over in March of twenty 310 00:15:38,520 --> 00:15:38,880 Speaker 10: twenty eight. 311 00:15:38,960 --> 00:15:41,240 Speaker 11: Now there's some issues with that because that's two years. 312 00:15:41,000 --> 00:15:43,080 Speaker 10: Away, so I don't know how sort of how much 313 00:15:43,120 --> 00:15:44,720 Speaker 10: teeth that has in it, and basically saying that we 314 00:15:44,800 --> 00:15:46,160 Speaker 10: know we can threaten you in two years that is 315 00:15:46,200 --> 00:15:48,680 Speaker 10: also an election year in the United States, that'll be 316 00:15:48,840 --> 00:15:51,800 Speaker 10: basically full election mode. Maybe not the best timing to 317 00:15:51,840 --> 00:15:54,240 Speaker 10: sort of raise tariffs for a number of different reasons. 318 00:15:54,240 --> 00:15:56,040 Speaker 10: A because Trump might not be there, or you know, 319 00:15:56,080 --> 00:15:59,080 Speaker 10: his predecessor or whoever comes next may not be there. 320 00:15:59,200 --> 00:16:00,600 Speaker 10: But also you don't want to sort of be seen 321 00:16:00,640 --> 00:16:02,720 Speaker 10: as meddling with an election anyway. That is sort of 322 00:16:02,720 --> 00:16:04,880 Speaker 10: the hurdle that has been cleared. That being said, the 323 00:16:04,880 --> 00:16:07,040 Speaker 10: Europeans would like to capitalize on what has been a 324 00:16:07,080 --> 00:16:09,240 Speaker 10: good year for trade deals. We've talked about Mircos or 325 00:16:09,320 --> 00:16:12,120 Speaker 10: Latin America, we talked about India, and now potentially in 326 00:16:12,120 --> 00:16:14,600 Speaker 10: the final stretches of a trade deal with the Australians 327 00:16:14,640 --> 00:16:17,640 Speaker 10: as the Australian minister comes to Brussels tomorrow to have 328 00:16:17,640 --> 00:16:18,400 Speaker 10: those discussions. 329 00:16:19,040 --> 00:16:21,640 Speaker 3: Okay, Oliver Crokarchief, you're a correspondent. Thank you very much 330 00:16:21,680 --> 00:16:24,080 Speaker 3: for bringing us details of your interview with the European 331 00:16:24,080 --> 00:16:27,000 Speaker 3: Council President Antonio Casta, as well as those latest headlines 332 00:16:27,040 --> 00:16:30,320 Speaker 3: on trade. Stay with us. More from Bloomberg Daybreak Europe 333 00:16:30,360 --> 00:16:31,600 Speaker 3: coming up after this. 334 00:16:32,920 --> 00:16:34,600 Speaker 4: Well, let's stay with Europe, shall we. 335 00:16:34,800 --> 00:16:39,200 Speaker 2: Poland's one trillion dollar economy is beginning to flex its 336 00:16:39,320 --> 00:16:43,320 Speaker 2: muscles with acquisitions across Western Europe, having emerged from the 337 00:16:43,360 --> 00:16:46,800 Speaker 2: shadows of communism into the European Union in two thousand 338 00:16:46,840 --> 00:16:51,320 Speaker 2: and four and now approaching developed nation status. Joining us 339 00:16:51,320 --> 00:16:56,320 Speaker 2: this morning is Bloomberg's Equities report in Poland. Conrad Krazuski, Conrad, 340 00:16:56,400 --> 00:16:59,920 Speaker 2: good morning. Tell us about the acquisitions s brief. 341 00:17:00,080 --> 00:17:05,919 Speaker 12: First of all, good morning, So basically, we faced the 342 00:17:05,920 --> 00:17:09,160 Speaker 12: paradoxy with Polish economy for a long time because we 343 00:17:10,119 --> 00:17:13,119 Speaker 12: recognized economic success in Europe, already the fastest growing, the 344 00:17:13,520 --> 00:17:17,959 Speaker 12: larger economy for many, many years. But we lack some 345 00:17:19,080 --> 00:17:22,600 Speaker 12: exports orientity know, face the of this you know success, so. 346 00:17:22,560 --> 00:17:25,240 Speaker 6: We lack the foreign acquisitions. 347 00:17:25,880 --> 00:17:28,919 Speaker 12: And one of the reasons for that it could be 348 00:17:28,960 --> 00:17:32,960 Speaker 12: the man of the local market is really quite large, 349 00:17:33,000 --> 00:17:35,919 Speaker 12: you know, compared to the other Eastern European nations. So 350 00:17:36,680 --> 00:17:40,360 Speaker 12: the posts can thinking maybe it's enough to be here 351 00:17:40,480 --> 00:17:43,440 Speaker 12: in Poland and to grow the business, grow the customer 352 00:17:43,560 --> 00:17:46,720 Speaker 12: here in Poland. But over the course of the last year, 353 00:17:46,800 --> 00:17:51,239 Speaker 12: we witnessed some anacdotical, you know, evidence that something may 354 00:17:51,280 --> 00:17:55,879 Speaker 12: be changing, because we saw several acquisitions in Germany. We 355 00:17:56,000 --> 00:18:00,880 Speaker 12: saw the acquisition large acquisition entirety, and when we made 356 00:18:00,920 --> 00:18:05,639 Speaker 12: the efforts to calculate to see from the database that 357 00:18:07,200 --> 00:18:11,520 Speaker 12: how many of these transactions had been in the place 358 00:18:11,640 --> 00:18:17,919 Speaker 12: already will we saw that we had twenty two acquisitions. 359 00:18:18,800 --> 00:18:19,560 Speaker 6: Only in Europe. 360 00:18:20,000 --> 00:18:24,520 Speaker 12: It's most everts and it saw that showed us that 361 00:18:24,880 --> 00:18:28,960 Speaker 12: maybe we are changing the the more moment and the 362 00:18:29,040 --> 00:18:32,480 Speaker 12: more economic model to more like developed nation status that 363 00:18:32,640 --> 00:18:36,000 Speaker 12: you know, we're not attracting the FDI suponland, but we 364 00:18:36,119 --> 00:18:40,880 Speaker 12: are already big enough to start thinking about the other markets. 365 00:18:41,000 --> 00:18:44,359 Speaker 6: And of course it's it's just the beginning, but. 366 00:18:46,520 --> 00:18:49,680 Speaker 12: Coming from the regional powerhouse when the companies were expanding 367 00:18:49,760 --> 00:18:54,520 Speaker 12: only to the Zecher public, Romania and these kind of 368 00:18:54,600 --> 00:18:58,520 Speaker 12: you know, foreign communist nations too, now they are moving 369 00:18:58,600 --> 00:18:59,240 Speaker 12: into Germany. 370 00:18:59,280 --> 00:19:01,600 Speaker 6: It's something is striking for us at this moment. 371 00:19:02,280 --> 00:19:05,399 Speaker 3: What's the overall trajectory then for the Polish economy, you 372 00:19:05,480 --> 00:19:08,320 Speaker 3: know the comparisons being made with Germany. Is Poland on 373 00:19:08,440 --> 00:19:10,960 Speaker 3: track to overtake your up largest economy. 374 00:19:13,880 --> 00:19:14,560 Speaker 6: For Germany. 375 00:19:14,760 --> 00:19:16,960 Speaker 12: We always look at the German as and I have 376 00:19:17,119 --> 00:19:21,720 Speaker 12: something unrevolved because of the say sizes of this in 377 00:19:21,960 --> 00:19:24,840 Speaker 12: nable and you know the strength of the especially in 378 00:19:24,880 --> 00:19:31,800 Speaker 12: the industry there. But having said so that when we 379 00:19:31,920 --> 00:19:34,760 Speaker 12: talk to some entrepreneurs in not trying to get these 380 00:19:34,880 --> 00:19:38,840 Speaker 12: markets to the market. We have some strengths because we 381 00:19:38,960 --> 00:19:42,000 Speaker 12: are late camera to different you know industries, We are 382 00:19:42,119 --> 00:19:46,919 Speaker 12: late comeras to different you know customer in a related business, 383 00:19:46,960 --> 00:19:50,000 Speaker 12: so we can do things differently. I mean Germany is 384 00:19:50,480 --> 00:19:53,320 Speaker 12: lagging behind with the technology, We're lagging behind with the 385 00:19:53,400 --> 00:19:58,680 Speaker 12: kind of sin tech approach. So entrepreneurs, we talked to 386 00:19:59,400 --> 00:20:02,160 Speaker 12: such a huge on a Postco that but the different 387 00:20:02,440 --> 00:20:07,880 Speaker 12: big travel company in Germany and some IT businesses said, 388 00:20:08,080 --> 00:20:10,960 Speaker 12: you know, we have some advantages. That doesn't mean that 389 00:20:11,720 --> 00:20:15,160 Speaker 12: we're going to overtake Germany in the next couple of years, 390 00:20:15,240 --> 00:20:19,359 Speaker 12: but definitely they say that we have something to be 391 00:20:19,440 --> 00:20:21,920 Speaker 12: added to their businesses, like, you know, the way we 392 00:20:22,119 --> 00:20:27,040 Speaker 12: manage the ITV sphere, maybe the way we manage the 393 00:20:27,119 --> 00:20:29,879 Speaker 12: customer approach with the ecommers, the way we use the 394 00:20:30,520 --> 00:20:35,400 Speaker 12: financial you know technology to to just make things more efficient. 395 00:20:35,560 --> 00:20:38,680 Speaker 12: So there's a hope that maybe this kind of German 396 00:20:38,760 --> 00:20:43,800 Speaker 12: economic which has some problems at this moment, that it's 397 00:20:43,960 --> 00:20:47,520 Speaker 12: just lagging withto some kind of all technology. So also 398 00:20:47,520 --> 00:20:53,560 Speaker 12: the industry or issues connected to something polished spirit of 399 00:20:53,680 --> 00:20:58,240 Speaker 12: the entrepreneurial spirit can maybe this equation can add some 400 00:20:58,480 --> 00:20:59,359 Speaker 12: value at this moment. 401 00:21:00,520 --> 00:21:03,640 Speaker 3: Okay, Conrad, thanks so much for joining us. Connor Kozerski, 402 00:21:03,720 --> 00:21:06,520 Speaker 3: there are equity supporter in Poland bringing this detail of 403 00:21:06,640 --> 00:21:10,280 Speaker 3: that acquisition spree that Polish companies have been on. 404 00:21:11,960 --> 00:21:13,560 Speaker 2: Well, there is just one other story that caught my 405 00:21:13,600 --> 00:21:18,960 Speaker 2: attention this morning. Classic cars apparently hitting blistering highs at auction. 406 00:21:19,119 --> 00:21:22,439 Speaker 2: The value of classic cars sold at the three major 407 00:21:22,480 --> 00:21:25,440 Speaker 2: auction events that we've seen in January, apparently they jumped 408 00:21:25,520 --> 00:21:29,359 Speaker 2: eighty percent according to classic dot Com. I was just thinking, 409 00:21:30,680 --> 00:21:33,840 Speaker 2: this is all being driven by younger collectors, throw back 410 00:21:33,880 --> 00:21:34,440 Speaker 2: to their youth. 411 00:21:34,720 --> 00:21:35,840 Speaker 4: Apparently, Calin. 412 00:21:35,880 --> 00:21:38,080 Speaker 3: I was wondering, if you've been shopping for classic cars 413 00:21:38,080 --> 00:21:40,760 Speaker 3: on the weekend, thinking about you know, I could see 414 00:21:40,800 --> 00:21:42,840 Speaker 3: you zipping around North London, all of those you know, 415 00:21:43,000 --> 00:21:44,200 Speaker 3: stylish convertibles. 416 00:21:44,760 --> 00:21:45,200 Speaker 4: I love it. 417 00:21:45,640 --> 00:21:49,040 Speaker 2: There is actually a pizza joint in North London where 418 00:21:49,200 --> 00:21:53,399 Speaker 2: it is also a classic car showroom. Amazing Kleizer, amazing cars. 419 00:21:53,600 --> 00:21:54,240 Speaker 4: It's good good. 420 00:21:54,320 --> 00:21:57,280 Speaker 3: There's to be overlapping interests. Is that if you like pizza, 421 00:21:57,359 --> 00:21:59,440 Speaker 3: you're thus going to be interested in classic cars. 422 00:21:59,560 --> 00:22:03,040 Speaker 2: We can't put any greasy fingers on the the vehicles 423 00:22:03,080 --> 00:22:06,600 Speaker 2: on display. Yeah, I love this story though about just 424 00:22:06,760 --> 00:22:10,240 Speaker 2: the enormous cost the value of classic car market in 425 00:22:10,400 --> 00:22:14,159 Speaker 2: the US twenty five billion dollars. And yeah, the buyers 426 00:22:14,160 --> 00:22:17,720 Speaker 2: are younger. Gto was the big one that was sold 427 00:22:17,880 --> 00:22:20,840 Speaker 2: in January, a white one, the only one. Anyway, one 428 00:22:20,880 --> 00:22:23,320 Speaker 2: story that we were thinking about this morning. Might put 429 00:22:23,359 --> 00:22:24,879 Speaker 2: a link to it in our show notes, just in 430 00:22:25,000 --> 00:22:27,679 Speaker 2: case you happen to have the few billion, few million 431 00:22:27,720 --> 00:22:28,679 Speaker 2: that you need to buy one. 432 00:22:30,359 --> 00:22:33,080 Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the 433 00:22:33,160 --> 00:22:36,159 Speaker 3: stories making news from London to Wall Street and beyond. 434 00:22:36,560 --> 00:22:39,720 Speaker 2: Look for us on your podcast feed every morning, on Apple, 435 00:22:39,880 --> 00:22:42,480 Speaker 2: Spotify and anywhere else you get your podcasts. 436 00:22:42,720 --> 00:22:45,760 Speaker 3: You can also listen live each morning on London DAB Radio, 437 00:22:45,800 --> 00:22:48,120 Speaker 3: the Bloomberg Business app, and Bloomberg dot Com. 438 00:22:48,560 --> 00:22:51,280 Speaker 2: Our flagship New York station is also available on your 439 00:22:51,320 --> 00:22:52,800 Speaker 2: Amazon Alexa devices. 440 00:22:53,240 --> 00:22:57,520 Speaker 4: Just say Alexa play Bloomberg eleven thirty. I'm Caroline Hepka and. 441 00:22:57,520 --> 00:23:00,199 Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all 442 00:23:00,240 --> 00:23:02,560 Speaker 3: the news you need to start your day right here 443 00:23:02,680 --> 00:23:04,040 Speaker 3: on Bloomberg Daybreak Europe.