WEBVTT - Canada School Shooting, EU Chief Costa Exclusive, Poland’s $1 Trillion Flex 0:00:00.120 --> 0:00:07.040 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.440 --> 0:00:12.120 This is the Bloomberg dayba qu At podcast. Good Morning 0:00:12.200 --> 0:00:15.680 is Wednesday, the eleventh of February. I'm Caroline Hepkeitt in London. 0:00:15.560 --> 0:00:18.720 And I'm Stephen Carolin Brussels. Coming up today. At least 0:00:18.840 --> 0:00:22.560 nine victims are killed in one of Canada's deadliest school shootings, 0:00:22.800 --> 0:00:25.160 with the suspected perpetrator also dead. 0:00:25.600 --> 0:00:29.240 The European Council President tells us that European Union leaders 0:00:29.280 --> 0:00:32.400 are finally ready to fully integrate their markets. 0:00:32.800 --> 0:00:36.760 Plus a one trillion dollar flex, Polish companies expand into 0:00:36.760 --> 0:00:39.760 Western Europe with a focus on Germany. In an M 0:00:39.760 --> 0:00:40.680 and a boom. 0:00:41.080 --> 0:00:43.360 Let's start with a roundup of our top stories. 0:00:44.000 --> 0:00:46.120 A shooting at a school in the Canadian province of 0:00:46.159 --> 0:00:49.200 British Columbia has left eight people dead, including a woman 0:00:49.240 --> 0:00:52.360 who police believed to be the shooter. Authority say two 0:00:52.440 --> 0:00:55.400 more people were found dead at a nearby home. British 0:00:55.400 --> 0:00:59.080 Columbia Premier David eb told reporters that police officers reached 0:00:59.120 --> 0:01:01.840 the school within two minutes. He spoke at a press 0:01:01.840 --> 0:01:03.040 conference after the shooting. 0:01:03.720 --> 0:01:05.280 It's hard to know what to say on a night 0:01:05.400 --> 0:01:07.480 like tonight. This is the kind of thing that feels 0:01:07.480 --> 0:01:10.680 like it happens in other places and not close to 0:01:10.760 --> 0:01:13.800 home in a way that this feels for so many 0:01:13.800 --> 0:01:15.240 British Columbians and Canadians. 0:01:15.920 --> 0:01:18.080 David eb was speaking as police say they are not 0:01:18.160 --> 0:01:21.240 yet releasing the identity of the suspected attacker. In a 0:01:21.280 --> 0:01:24.520 statement on social media, Canadian Prime Minister Mark Carney said 0:01:24.520 --> 0:01:27.679 he was devastated by the mass shooting, which is Canada's 0:01:27.680 --> 0:01:31.480 deadliest since twenty twenty. Carney's office said he's suspending a 0:01:31.520 --> 0:01:34.040 planned trip to Germany for the Munich Security Conference. 0:01:35.200 --> 0:01:38.600 The European Council president has told Bloomberg that the EU 0:01:38.760 --> 0:01:43.080 must review its powerful competition rules to boost the bloc's economy. 0:01:43.280 --> 0:01:45.959 Antonio Costa was speaking ahead of a gathering of EU 0:01:46.040 --> 0:01:49.680 leaders this week, which will focus on improving competitiveness as 0:01:49.680 --> 0:01:53.640 the region faces challenges from the United States and China. 0:01:54.400 --> 0:01:55.040 We need to. 0:01:54.960 --> 0:01:58.680 Look at our competition rules because it's clear that we 0:01:58.800 --> 0:02:02.640 need to at the same time protect our consumers to 0:02:02.720 --> 0:02:06.800 ensure a vibrant competition in lawer single market, but at 0:02:06.800 --> 0:02:10.520 the same time allow companies to scale up to be 0:02:10.600 --> 0:02:13.440 competitive in the global market. 0:02:13.840 --> 0:02:16.760 The European Council president was speaking after the German and 0:02:16.880 --> 0:02:21.120 Italian government's warned you must act now on reforming its 0:02:21.200 --> 0:02:25.480 single market. In a paper circulated ahead of tomorrow's leaders meeting, 0:02:25.560 --> 0:02:28.880 they called, among other things, for the EU to loosen 0:02:29.000 --> 0:02:32.920 merger rules, allowing European companies to scale up and rival 0:02:33.000 --> 0:02:34.440 America's tech giants. 0:02:35.160 --> 0:02:37.880 The European Parliament is moving closer to approving the ease 0:02:37.960 --> 0:02:40.960 trade deal with the United States. Senior lawmakers have agreed 0:02:41.000 --> 0:02:43.000 to back the deal ahead of a vote, but they've 0:02:43.000 --> 0:02:45.400 added a sunset clause to the pact, which was he'd 0:02:45.440 --> 0:02:48.240 expire in March twenty twenty eight, in an effort to 0:02:48.280 --> 0:02:50.680 force the US to lower its fifty percent tariff on 0:02:50.720 --> 0:02:54.280 steel and aluminium products. Months have passed since both sides 0:02:54.280 --> 0:02:57.600 agreed to dial down trade tensions, compromising on a fifteen 0:02:57.639 --> 0:03:00.920 percent tariff on EU goods entering the United States. The 0:03:01.000 --> 0:03:03.200 deal has faced a rocky path to approval in the 0:03:03.240 --> 0:03:06.120 European Parliament. A vote is expected on the twenty fourth 0:03:06.160 --> 0:03:06.800 of February. 0:03:07.240 --> 0:03:10.680 Emails released by the US Justice Department show Elon Musk's 0:03:10.720 --> 0:03:14.320 brother Kimball Musk, was connected with at least two women 0:03:14.480 --> 0:03:18.959 through Jeffrey Epstein, several years after the disgraced financier pleaded 0:03:18.960 --> 0:03:22.519 guilty to sex crimes. The emails show that the director 0:03:22.560 --> 0:03:27.120 at Tesla and Epstein discussed party plans, relationships, and a 0:03:27.160 --> 0:03:31.840 possible visit to Epstein's island. Kimball Musk released a statement 0:03:31.919 --> 0:03:34.680 saying that his only meeting with Epstein was in his 0:03:34.800 --> 0:03:37.120 New York office during the day and that he never 0:03:37.440 --> 0:03:38.560 went to his island. 0:03:39.360 --> 0:03:42.000 The US Commerce Secretary Horod Lutnick has also come under 0:03:42.000 --> 0:03:44.760 fire for his appearance in the files. Lutnick said he 0:03:44.840 --> 0:03:48.720 did visit Epstein's private island in twenty twelve, after Epstein 0:03:48.800 --> 0:03:51.400 was convicted as a sex offender. Here is an exchange 0:03:51.400 --> 0:03:54.920 between Lutnick and Maryland Senator Chris van Holland, did. 0:03:54.760 --> 0:03:58.800 You, in fact make the visit to Jeffrey Epstein's private island. 0:04:00.360 --> 0:04:02.920 I did have lunch with him as I was on 0:04:02.960 --> 0:04:06.840 a boat going across on a family vacation. My wife 0:04:07.120 --> 0:04:10.880 was with me, as were my four children and nanny's 0:04:11.120 --> 0:04:15.320 I had another couple with They were there as well 0:04:15.440 --> 0:04:19.520 with their children, and we had lunch on the island. 0:04:20.440 --> 0:04:22.400 That Nik has face and calls to resign over the 0:04:22.440 --> 0:04:25.719 relationship with Epstein, since the files show his ties to 0:04:25.800 --> 0:04:29.640 disgraced financier were more extensive than he previously revealed. The 0:04:29.680 --> 0:04:32.560 White House said that President Trump has no plans to 0:04:32.600 --> 0:04:34.600 remove Lutnik from his post. 0:04:35.400 --> 0:04:38.839 Investment in the UK FinTechs plummeted by more than twenty 0:04:38.839 --> 0:04:41.400 percent last year to the lowest level since the start 0:04:41.480 --> 0:04:44.840 of the COVID nineteen pandemic. Bluebog's EU and Parts has 0:04:44.880 --> 0:04:45.440 the story. 0:04:46.080 --> 0:04:50.120 The UK's financial technology sector attracted just shy of eleven 0:04:50.200 --> 0:04:53.120 billion dollars last year, down from about thirteen and a 0:04:53.160 --> 0:04:55.640 half billion dollars in twenty twenty four. 0:04:56.160 --> 0:04:57.440 The numbers come from. 0:04:57.240 --> 0:05:01.400 A KPMG report citing pitch Book data. In total, four 0:05:01.480 --> 0:05:04.520 hundred and eighteen fintech deals closed last year with a 0:05:04.560 --> 0:05:07.840 blockbuster of four billion dollar fund raising by Revolute at 0:05:07.839 --> 0:05:11.120 evaluation of seventy five billion dollars, making up a big 0:05:11.200 --> 0:05:14.680 chunk of the total raised. The UK's fintech sector was 0:05:14.760 --> 0:05:17.359 dwarfed by the US, which accounted for close to half 0:05:17.440 --> 0:05:21.040 of all cash raised globally, but to unline the country's relevance, 0:05:21.160 --> 0:05:25.440 UK fintech's attracted more funding than those in France Germany, Belgium, 0:05:25.440 --> 0:05:30.039 the Nordics Island, China and Brazil combined In London, I'm 0:05:30.040 --> 0:05:31.880 ewing pots Bloomberg Radio, and. 0:05:31.839 --> 0:05:33.960 Those are your top stories on the market. Zero stocks 0:05:34.000 --> 0:05:36.640 fifty features are flat at the moment. Forty one hundred 0:05:36.680 --> 0:05:38.440 fatures are two tents of one percent higher. We did 0:05:38.520 --> 0:05:41.000 see Asian equities hit a record high earlier at the 0:05:41.040 --> 0:05:44.480 MSCIS Specific index outside of Japan by one point one percent. 0:05:44.520 --> 0:05:46.880 The Blueberg Dollar Spot Index weeker ahead of today's US 0:05:46.960 --> 0:05:49.359 jobs data by two tenths of one percent. The Japanese 0:05:49.400 --> 0:05:52.880 yen is eight tenths stronger as one fifty three twenty two. 0:05:53.360 --> 0:05:56.120 Those are the markets. Now, let's get an updates on 0:05:56.200 --> 0:06:00.320 the mass school shooting in Canada at tumbler Ridge Secondtry 0:06:00.360 --> 0:06:01.680 School in British Columbia. 0:06:02.080 --> 0:06:03.000 Joining US now for more. 0:06:03.040 --> 0:06:06.720 And this is Bloomberg's Washington Deputy Bureau Chief, Lord Davison. 0:06:07.160 --> 0:06:09.039 Good morning, Law of what do we know so far 0:06:09.120 --> 0:06:12.000 about this shooting and about the perpetrator? 0:06:12.760 --> 0:06:15.400 So this shooting is is summing up to be one 0:06:15.440 --> 0:06:19.000 of the worst in Canada's history. Ten left dead, including 0:06:19.040 --> 0:06:21.479 the shooter, as well as twenty five or so that 0:06:21.520 --> 0:06:24.640 have been injured in this attack. There are not a 0:06:24.680 --> 0:06:27.880 lot of details yet about the shooter. According to a 0:06:27.880 --> 0:06:30.239 public safety alert that went out to residence in the area, 0:06:30.320 --> 0:06:33.240 the shooter was identified as a female with brown hair 0:06:33.480 --> 0:06:35.600 wearing a dress, but the authorities have not given any 0:06:35.640 --> 0:06:38.839 other names so far about who this could be age 0:06:39.520 --> 0:06:41.120 or if they have any connection to the area. 0:06:42.600 --> 0:06:46.000 What have we heard from the Canadian authorities? The Prime 0:06:46.000 --> 0:06:48.240 Minister is suspending a plan trip to Germany. 0:06:49.040 --> 0:06:51.719 Yes, there's really been an outpouring of support from leaders 0:06:51.760 --> 0:06:54.840 at all levels, from the province level, local level, and 0:06:55.320 --> 0:06:57.880 of course at the national level. This is a big 0:06:57.920 --> 0:07:00.880 deal for Carney to spend this trip this, you know, 0:07:00.920 --> 0:07:03.400 sort of as an indication of just how seriously everyone 0:07:03.400 --> 0:07:06.040 across Canada is taking the shooting. You know, he was 0:07:06.080 --> 0:07:09.200 scheduled to go to Germany for the Munich Security Conference 0:07:09.200 --> 0:07:10.880 here in just a couple of days. This is really 0:07:10.920 --> 0:07:13.480 a notable time for Carney because he you know, has 0:07:13.720 --> 0:07:17.160 just in recent days taken a very strident approach against 0:07:17.160 --> 0:07:20.120 the US, giving a very powerful speech at at Davos, 0:07:20.480 --> 0:07:23.679 and you know, kind of really taking a big place 0:07:23.680 --> 0:07:25.440 on the national stage as there's sort of the the 0:07:25.440 --> 0:07:29.000 powers are rebalancing here between the US, Asia and and 0:07:29.000 --> 0:07:30.880 and Europe, and so this is a big deal for 0:07:30.960 --> 0:07:31.800 him to step back from this. 0:07:32.320 --> 0:07:35.920 M Mass shootings do, sadly occur in the United States. 0:07:35.920 --> 0:07:38.120 They're far less common though in Canada. 0:07:39.000 --> 0:07:41.880 Yes, this is you know, uh, unfortunately for Canada and 0:07:41.960 --> 0:07:44.000 unfortunately for the US, has been you know, a trend 0:07:44.000 --> 0:07:46.680 that's been going on for some time. A lot of 0:07:46.720 --> 0:07:50.800 experts attributed this to differences and how gun laws are 0:07:51.080 --> 0:07:52.280 in between the two countries. 0:07:52.680 --> 0:07:54.320 Guns are prevalent, there are lots. 0:07:54.120 --> 0:07:57.200 Of gun owners both sides of the border here, but 0:07:57.280 --> 0:07:59.840 in the US it's treated as a constitutional right. It's 0:08:00.040 --> 0:08:02.160 and into the US Constitution, and that's made it very 0:08:02.200 --> 0:08:06.360 hard for US policymakers to be able to restrict gun 0:08:06.400 --> 0:08:10.280 ownership and put other limits on gun owners. In Canada, 0:08:10.320 --> 0:08:13.080 for example, they have a lot more restrictions in terms 0:08:13.120 --> 0:08:15.200 of these red flag laws that allow guns to be 0:08:15.240 --> 0:08:18.240 taken away for people with mental health or other concerning 0:08:18.280 --> 0:08:22.000 behavior issues. There's a national registry and there's just more 0:08:22.080 --> 0:08:24.920 sort of protections that a lot of experts have credited 0:08:24.960 --> 0:08:28.160 to lessening the number of unfortunate gun incidents, including mass 0:08:28.160 --> 0:08:29.640 shootings like we've seen just recently. 0:08:30.240 --> 0:08:32.160 Okay, Laura, thank you very much for bringing us up 0:08:32.200 --> 0:08:35.000 to date on the latest. That's our Washington Deputy Bureau Chief, 0:08:35.080 --> 0:08:37.199 Laura Davison. There now to. 0:08:37.920 --> 0:08:42.000 A significant conversation our attention moving to Europe. Could this 0:08:42.280 --> 0:08:46.960 be the moment that European leaders take decisive steps towards 0:08:46.960 --> 0:08:50.319 showing up their economy. Antonio Costa, who chairs the meetings 0:08:50.360 --> 0:08:52.880 of EU leaders, has been speaking to Bloomberg ahead of 0:08:52.880 --> 0:08:56.480 an informal summit that's taking place tomorrow, which will focus 0:08:56.480 --> 0:08:59.360 on trying to improve competitiveness in the face of the 0:08:59.480 --> 0:09:03.000 US and China. Our chief correspondent Oliver Krook spoke to 0:09:03.040 --> 0:09:05.880 the European Council President and he joins us this morning. 0:09:05.960 --> 0:09:08.400 Hi Oli. So it's been eighteen. 0:09:08.080 --> 0:09:12.079 Months since the DRUGI report that talked about a reform 0:09:12.200 --> 0:09:16.560 being existential, a year since Donald Trump took office and 0:09:16.640 --> 0:09:20.640 started threatening tariffs on the EU. Is this the big 0:09:20.679 --> 0:09:23.640 moment for the EU to boost its own economy? 0:09:23.720 --> 0:09:26.439 I mean, that's certainly the point that Antonio Costa is making, 0:09:26.440 --> 0:09:28.280 and really the ambition that he is trying to lay 0:09:28.280 --> 0:09:30.640 out as EU Council President and trying to advance a 0:09:30.640 --> 0:09:34.120 lot of these very clunky, very complex, but very important 0:09:34.120 --> 0:09:37.640 reforms within the European Union. He said, basically last year 0:09:37.720 --> 0:09:40.880 was all about defense. They managed to do last year 0:09:41.040 --> 0:09:42.960 in a couple of months what they've failed to do 0:09:43.040 --> 0:09:45.160 in a couple of decades. What he's referring to there, 0:09:45.200 --> 0:09:49.520 presumably is the NATO spend, for example, getting European NATO 0:09:49.559 --> 0:09:51.599 countries to about five percent of spending three and a 0:09:51.640 --> 0:09:54.080 half percent of that very clearly on defense, but also 0:09:54.120 --> 0:09:56.640 on trade deals. He managed to get forward two massive 0:09:56.640 --> 0:09:59.280 trade deals that were basically in the works for twenty years, 0:09:59.280 --> 0:10:01.760 in India and Mercer Source, so those are going to 0:10:01.760 --> 0:10:04.239 be the victories. Now it kind of gets more complicated 0:10:04.280 --> 0:10:06.959 on competitiveness because that's when you get into very thorny issues, 0:10:07.000 --> 0:10:09.440 you know, m and A, across borders, all of those 0:10:09.440 --> 0:10:11.319 sorts of things. And he said that if last year 0:10:11.400 --> 0:10:14.319 was about defense, this year is really about competitiveness. 0:10:14.320 --> 0:10:15.760 Have a listened to what he had to say about that. 0:10:16.640 --> 0:10:20.600 We need to focus this year on competitiveness with the 0:10:20.679 --> 0:10:24.240 same energy that last year we focus on defense. And 0:10:24.320 --> 0:10:27.240 for this we need to approve as soon as possible 0:10:27.600 --> 0:10:31.960 a roadmap to complete and deepening the Single market that 0:10:32.120 --> 0:10:35.360 means that we need to create a real single market 0:10:35.480 --> 0:10:39.360 on energy, on telecoms, we need to approve the so 0:10:39.520 --> 0:10:44.520 called twenty ACE regime to have a simple and single 0:10:44.880 --> 0:10:49.080 company law across all the European Union. We need to 0:10:49.160 --> 0:10:54.640 remove several internal barriers that remains in the single market. 0:10:54.840 --> 0:10:59.079 We need to continue to cut red tape. The Commission 0:10:59.120 --> 0:11:04.360 has already is ented ten package to remove red tape, 0:11:04.400 --> 0:11:07.280 but we need to do more. And we need to 0:11:07.440 --> 0:11:13.400 also to tackling our external dependencies on critical row materials, 0:11:13.840 --> 0:11:19.360 to secrize our supply chain and of course to find 0:11:19.600 --> 0:11:24.959 new markets to export. Because the the European Union powerouse 0:11:25.040 --> 0:11:30.200 own trade. We are by far the largest economic block 0:11:30.480 --> 0:11:33.559 on trade and we need to build on this to 0:11:33.600 --> 0:11:35.320 increase our competitiveness. 0:11:35.600 --> 0:11:38.240 So whatever the prescription is clear, what needs to be 0:11:38.320 --> 0:11:41.080 done UNTILIO cost laying some of the priorities there. But 0:11:41.320 --> 0:11:43.440 is there the political will to do it? 0:11:43.760 --> 0:11:45.240 Yeah, and I think we used to sort of hasten 0:11:45.320 --> 0:11:47.320 to add that on many of that very long laundry 0:11:47.360 --> 0:11:49.560 list that he sort of enumerated there, whether it's everything 0:11:49.600 --> 0:11:52.720 from sort of telecoms between the European countries the capital 0:11:52.760 --> 0:11:55.440 markets Union, very little progress has been made, and I 0:11:55.440 --> 0:11:57.480 think something like the Capital Markets Union. 0:11:57.520 --> 0:11:59.320 You know, I asked them at the end of the interview. 0:11:59.080 --> 0:12:01.480 Twelve months from now, let's be concrete, if you sit 0:12:01.520 --> 0:12:03.920 down here, what will you achieved. He sort of was 0:12:03.920 --> 0:12:05.480 hedged himself a little bit because of course he doesn't 0:12:05.480 --> 0:12:07.040 want to front run a lot of these world leaders, 0:12:07.040 --> 0:12:09.079 but it seems that really his priority is going to 0:12:09.120 --> 0:12:11.920 be on cutting this red tape and also potentially moving 0:12:11.920 --> 0:12:13.960 forward on the capital market. So that's going to be 0:12:13.960 --> 0:12:16.480 the big thing. What I think Macohn and many others 0:12:16.480 --> 0:12:18.280 and many and macohonn coming out over the last couple 0:12:18.320 --> 0:12:20.560 of days calling this the Greenland moment, and he's saying 0:12:20.559 --> 0:12:24.040 that this Greenland moment pushing Europeans together, should encourage them 0:12:24.080 --> 0:12:26.520 to basically get joint debt together to really get these 0:12:26.520 --> 0:12:28.800 programs off the ground. As you know, Stephen, this is 0:12:28.800 --> 0:12:31.679 always a very sort of spirited debate at the EU level. 0:12:31.800 --> 0:12:32.480 But what I thought was. 0:12:32.480 --> 0:12:35.320 Also very interesting talking to Antonio Costa, because we had 0:12:35.320 --> 0:12:38.040 that speech from Markarney at Davos where he's talking about 0:12:38.160 --> 0:12:41.160 basically rousing the Middle Powers, bringing them together, and that 0:12:41.280 --> 0:12:45.800 basically bringing a new multilateralism into being. Antonio Costa's job 0:12:45.960 --> 0:12:48.880 is to rally Middle Powers twenty seven member states for 0:12:48.960 --> 0:12:51.719 collective action. He knows how difficult that is that is 0:12:51.760 --> 0:12:53.640 going to be, and so I asked him basically, when 0:12:53.679 --> 0:12:55.960 you hear these sort of theories and these ideas as 0:12:56.000 --> 0:12:59.760 described by Mark Karney pragmatically, what does that look like? 0:13:00.240 --> 0:13:02.119 The way you had to say about that, Well. 0:13:01.920 --> 0:13:07.120 I'm also pessimistic as McCarney has been, and I don't 0:13:07.160 --> 0:13:10.760 say that the rules based order is diet and we 0:13:10.880 --> 0:13:14.080 need and we need a new one of course is 0:13:14.120 --> 0:13:17.480 in the threat, but I think we are strong enough 0:13:17.720 --> 0:13:21.680 to protect the rules based order because we don't have 0:13:21.760 --> 0:13:24.000 a real alternative to the rules based order. 0:13:24.120 --> 0:13:25.559 The alternative is the chaos. 0:13:26.240 --> 0:13:30.439 And that's why like manded patterns like the European Union, 0:13:30.920 --> 0:13:37.959 United Kingdom, Canada, Japan and other countries are very strong 0:13:38.320 --> 0:13:41.280 upholding the international rules based order. 0:13:41.520 --> 0:13:43.360 One of the reasons because. 0:13:43.080 --> 0:13:46.200 You are investing a lot in these trade agreements is 0:13:46.240 --> 0:13:51.760 because we need a rules trade order to ensure predictability 0:13:52.400 --> 0:13:57.200 to the economic agents. It's impossible to have a strong 0:13:57.400 --> 0:14:02.439 economic growth in with certain and we need to provide certainty. 0:14:02.600 --> 0:14:06.320 And the best way to provide certainty is to protect 0:14:06.440 --> 0:14:09.880 these international rules based order also in Traue. 0:14:10.160 --> 0:14:14.120 So no rules based order means chaos in Costa's view, 0:14:14.640 --> 0:14:17.920 but an illustration of the complexities of the decision making 0:14:17.960 --> 0:14:18.720 that you pointed to. 0:14:18.720 --> 0:14:19.000 Oli. 0:14:19.040 --> 0:14:21.720 The European Parliament has moved ahead with its process to 0:14:21.760 --> 0:14:25.480 approve a trade deal with the US, but with some 0:14:25.680 --> 0:14:26.960 additional conditions. 0:14:27.200 --> 0:14:28.880 Yeah, that's right, I mean, and again just sort of 0:14:28.880 --> 0:14:30.680 doing a sort of fast forward of the last year, 0:14:30.680 --> 0:14:32.920 because this all happened in the last twelve months. Liberation 0:14:33.040 --> 0:14:35.560 Day on in April, that's when the negotiations began. The 0:14:35.600 --> 0:14:37.720 deal was struck in July, a turn beret between the 0:14:37.760 --> 0:14:39.480 EU and the United States. It was supposed to be 0:14:39.600 --> 0:14:42.280 ratified at the beginning of this year, and then we've 0:14:42.320 --> 0:14:44.720 got what I guess we can call the Greenland detour, 0:14:44.760 --> 0:14:47.360 where basically everything was put on hold because you can't 0:14:47.360 --> 0:14:49.760 really agree to a trade deal while you're having more 0:14:49.840 --> 0:14:51.000 tariff threats. 0:14:50.600 --> 0:14:51.160 On the EU. 0:14:51.520 --> 0:14:53.520 We have now at the level where the Parliament has 0:14:53.520 --> 0:14:55.480 agreed to move forward on this, to vote on this. 0:14:55.560 --> 0:14:56.680 There was actually some doubt. 0:14:56.680 --> 0:14:58.880 There was some debate at the Parliament whether or not 0:14:58.920 --> 0:15:01.400 to do it, but they overcome those and have agreed 0:15:01.440 --> 0:15:03.920 to move forward, and basically what they're now looking at 0:15:04.000 --> 0:15:06.840 is trying to create an escape clause to this trade 0:15:06.880 --> 0:15:09.640 agreement in order for the Europeans to be able to 0:15:09.720 --> 0:15:13.320 renegotiate it in the future in basically March of twenty 0:15:13.360 --> 0:15:15.720 twenty eight. Now what they are trying to achieve now 0:15:15.720 --> 0:15:18.360 there's sort of top priority on trades to also reduce 0:15:18.400 --> 0:15:21.160 the steal and aluminum tariffs because those are not covered 0:15:21.200 --> 0:15:23.880 by the current agreement. So the current agreement basically puts 0:15:23.880 --> 0:15:26.520 fifteen percent tariffs across the board, you still have fifty 0:15:26.520 --> 0:15:29.480 percent tariffs on steal and aluminum, which the Europeans are 0:15:29.600 --> 0:15:31.680 very unhappy about. So they want to continue to try 0:15:31.680 --> 0:15:34.120 to negotiate on that, and if they basically can't get 0:15:34.120 --> 0:15:35.920 an agreement, they want to be able to say, hey, 0:15:36.080 --> 0:15:38.480 we're going to renegotiate this over in March of twenty 0:15:38.520 --> 0:15:38.880 twenty eight. 0:15:38.960 --> 0:15:41.240 Now there's some issues with that because that's two years. 0:15:41.000 --> 0:15:43.080 Away, so I don't know how sort of how much 0:15:43.120 --> 0:15:44.720 teeth that has in it, and basically saying that we 0:15:44.800 --> 0:15:46.160 know we can threaten you in two years that is 0:15:46.200 --> 0:15:48.680 also an election year in the United States, that'll be 0:15:48.840 --> 0:15:51.800 basically full election mode. Maybe not the best timing to 0:15:51.840 --> 0:15:54.240 sort of raise tariffs for a number of different reasons. 0:15:54.240 --> 0:15:56.040 A because Trump might not be there, or you know, 0:15:56.080 --> 0:15:59.080 his predecessor or whoever comes next may not be there. 0:15:59.200 --> 0:16:00.600 But also you don't want to sort of be seen 0:16:00.640 --> 0:16:02.720 as meddling with an election anyway. That is sort of 0:16:02.720 --> 0:16:04.880 the hurdle that has been cleared. That being said, the 0:16:04.880 --> 0:16:07.040 Europeans would like to capitalize on what has been a 0:16:07.080 --> 0:16:09.240 good year for trade deals. We've talked about Mircos or 0:16:09.320 --> 0:16:12.120 Latin America, we talked about India, and now potentially in 0:16:12.120 --> 0:16:14.600 the final stretches of a trade deal with the Australians 0:16:14.640 --> 0:16:17.640 as the Australian minister comes to Brussels tomorrow to have 0:16:17.640 --> 0:16:18.400 those discussions. 0:16:19.040 --> 0:16:21.640 Okay, Oliver Crokarchief, you're a correspondent. Thank you very much 0:16:21.680 --> 0:16:24.080 for bringing us details of your interview with the European 0:16:24.080 --> 0:16:27.000 Council President Antonio Casta, as well as those latest headlines 0:16:27.040 --> 0:16:30.320 on trade. Stay with us. More from Bloomberg Daybreak Europe 0:16:30.360 --> 0:16:31.600 coming up after this. 0:16:32.920 --> 0:16:34.600 Well, let's stay with Europe, shall we. 0:16:34.800 --> 0:16:39.200 Poland's one trillion dollar economy is beginning to flex its 0:16:39.320 --> 0:16:43.320 muscles with acquisitions across Western Europe, having emerged from the 0:16:43.360 --> 0:16:46.800 shadows of communism into the European Union in two thousand 0:16:46.840 --> 0:16:51.320 and four and now approaching developed nation status. Joining us 0:16:51.320 --> 0:16:56.320 this morning is Bloomberg's Equities report in Poland. Conrad Krazuski, Conrad, 0:16:56.400 --> 0:16:59.920 good morning. Tell us about the acquisitions s brief. 0:17:00.080 --> 0:17:05.919 First of all, good morning, So basically, we faced the 0:17:05.920 --> 0:17:09.160 paradoxy with Polish economy for a long time because we 0:17:10.119 --> 0:17:13.119 recognized economic success in Europe, already the fastest growing, the 0:17:13.520 --> 0:17:17.959 larger economy for many, many years. But we lack some 0:17:19.080 --> 0:17:22.600 exports orientity know, face the of this you know success, so. 0:17:22.560 --> 0:17:25.240 We lack the foreign acquisitions. 0:17:25.880 --> 0:17:28.919 And one of the reasons for that it could be 0:17:28.960 --> 0:17:32.960 the man of the local market is really quite large, 0:17:33.000 --> 0:17:35.919 you know, compared to the other Eastern European nations. So 0:17:36.680 --> 0:17:40.360 the posts can thinking maybe it's enough to be here 0:17:40.480 --> 0:17:43.440 in Poland and to grow the business, grow the customer 0:17:43.560 --> 0:17:46.720 here in Poland. But over the course of the last year, 0:17:46.800 --> 0:17:51.239 we witnessed some anacdotical, you know, evidence that something may 0:17:51.280 --> 0:17:55.879 be changing, because we saw several acquisitions in Germany. We 0:17:56.000 --> 0:18:00.880 saw the acquisition large acquisition entirety, and when we made 0:18:00.920 --> 0:18:05.639 the efforts to calculate to see from the database that 0:18:07.200 --> 0:18:11.520 how many of these transactions had been in the place 0:18:11.640 --> 0:18:17.919 already will we saw that we had twenty two acquisitions. 0:18:18.800 --> 0:18:19.560 Only in Europe. 0:18:20.000 --> 0:18:24.520 It's most everts and it saw that showed us that 0:18:24.880 --> 0:18:28.960 maybe we are changing the the more moment and the 0:18:29.040 --> 0:18:32.480 more economic model to more like developed nation status that 0:18:32.640 --> 0:18:36.000 you know, we're not attracting the FDI suponland, but we 0:18:36.119 --> 0:18:40.880 are already big enough to start thinking about the other markets. 0:18:41.000 --> 0:18:44.359 And of course it's it's just the beginning, but. 0:18:46.520 --> 0:18:49.680 Coming from the regional powerhouse when the companies were expanding 0:18:49.760 --> 0:18:54.520 only to the Zecher public, Romania and these kind of 0:18:54.600 --> 0:18:58.520 you know, foreign communist nations too, now they are moving 0:18:58.600 --> 0:18:59.240 into Germany. 0:18:59.280 --> 0:19:01.600 It's something is striking for us at this moment. 0:19:02.280 --> 0:19:05.399 What's the overall trajectory then for the Polish economy, you 0:19:05.480 --> 0:19:08.320 know the comparisons being made with Germany. Is Poland on 0:19:08.440 --> 0:19:10.960 track to overtake your up largest economy. 0:19:13.880 --> 0:19:14.560 For Germany. 0:19:14.760 --> 0:19:16.960 We always look at the German as and I have 0:19:17.119 --> 0:19:21.720 something unrevolved because of the say sizes of this in 0:19:21.960 --> 0:19:24.840 nable and you know the strength of the especially in 0:19:24.880 --> 0:19:31.800 the industry there. But having said so that when we 0:19:31.920 --> 0:19:34.760 talk to some entrepreneurs in not trying to get these 0:19:34.880 --> 0:19:38.840 markets to the market. We have some strengths because we 0:19:38.960 --> 0:19:42.000 are late camera to different you know industries, We are 0:19:42.119 --> 0:19:46.919 late comeras to different you know customer in a related business, 0:19:46.960 --> 0:19:50.000 so we can do things differently. I mean Germany is 0:19:50.480 --> 0:19:53.320 lagging behind with the technology, We're lagging behind with the 0:19:53.400 --> 0:19:58.680 kind of sin tech approach. So entrepreneurs, we talked to 0:19:59.400 --> 0:20:02.160 such a huge on a Postco that but the different 0:20:02.440 --> 0:20:07.880 big travel company in Germany and some IT businesses said, 0:20:08.080 --> 0:20:10.960 you know, we have some advantages. That doesn't mean that 0:20:11.720 --> 0:20:15.160 we're going to overtake Germany in the next couple of years, 0:20:15.240 --> 0:20:19.359 but definitely they say that we have something to be 0:20:19.440 --> 0:20:21.920 added to their businesses, like, you know, the way we 0:20:22.119 --> 0:20:27.040 manage the ITV sphere, maybe the way we manage the 0:20:27.119 --> 0:20:29.879 customer approach with the ecommers, the way we use the 0:20:30.520 --> 0:20:35.400 financial you know technology to to just make things more efficient. 0:20:35.560 --> 0:20:38.680 So there's a hope that maybe this kind of German 0:20:38.760 --> 0:20:43.800 economic which has some problems at this moment, that it's 0:20:43.960 --> 0:20:47.520 just lagging withto some kind of all technology. So also 0:20:47.520 --> 0:20:53.560 the industry or issues connected to something polished spirit of 0:20:53.680 --> 0:20:58.240 the entrepreneurial spirit can maybe this equation can add some 0:20:58.480 --> 0:20:59.359 value at this moment. 0:21:00.520 --> 0:21:03.640