1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,880 --> 00:00:13,320 Speaker 2: This is the Bloomberg Daybreak Ero podcast. Good morning, It's Thursday, 3 00:00:13,400 --> 00:00:16,400 Speaker 2: the ninth of April. I'm Stephen Carroll in London. Coming 4 00:00:16,480 --> 00:00:20,720 Speaker 2: up today. Massive Israeli strikes on Lebanon threatened to unravel 5 00:00:20,800 --> 00:00:24,800 Speaker 2: the fragile two week truce in the Iran war. US 6 00:00:24,920 --> 00:00:28,560 Speaker 2: Vice President jd Vance will lead negotiations with Tehran. As 7 00:00:28,640 --> 00:00:33,599 Speaker 2: conflicting statements so confusion, plus, they weren't there when we 8 00:00:33,680 --> 00:00:36,680 Speaker 2: needed them. Donald Trump lashes out at NATO while the 9 00:00:36,800 --> 00:00:40,199 Speaker 2: US asked for European support to secure the Strait of 10 00:00:40,240 --> 00:00:43,400 Speaker 2: Horror moves. Let's start with a roundup of our top stories. 11 00:00:43,920 --> 00:00:46,760 Speaker 2: Israel has launched its largest assault on Lebanon since the 12 00:00:46,800 --> 00:00:50,160 Speaker 2: start of its invasion, throwing a truce between the US 13 00:00:50,200 --> 00:00:53,479 Speaker 2: and Iran into jeopardy. The Israeli military says it targeted 14 00:00:53,520 --> 00:00:57,160 Speaker 2: more than one hundred Hezbola command centers and military sites 15 00:00:57,200 --> 00:01:00,920 Speaker 2: within ten minutes yesterday, including parts of sen Be route. 16 00:01:01,080 --> 00:01:04,240 Speaker 2: Iranian officials say the strikes violate the terms of the 17 00:01:04,319 --> 00:01:07,240 Speaker 2: day old ceasefire. Beka Wasser is a defense lead for 18 00:01:07,240 --> 00:01:08,280 Speaker 2: Bloomberg Economics. 19 00:01:08,959 --> 00:01:11,240 Speaker 1: Things seem to be changing by the minute, but at 20 00:01:11,240 --> 00:01:13,679 Speaker 1: this juncture in time, it appears as though it's a 21 00:01:13,720 --> 00:01:18,280 Speaker 1: ceasefire in name only. You have Israel's striking in Lebanon 22 00:01:18,480 --> 00:01:21,920 Speaker 1: saying that it's striking has Bullah, but not Iran directly. 23 00:01:22,360 --> 00:01:26,839 Speaker 1: You also see Iran continuing to launch over one hundred 24 00:01:26,880 --> 00:01:30,679 Speaker 1: and twenty projectiles at the Gulf stat today. That includes 25 00:01:30,880 --> 00:01:36,400 Speaker 1: missiles and drone attacks, including an attack on key energy infrastructure. 26 00:01:36,959 --> 00:01:39,679 Speaker 2: Becha Wasser also noted a report from the Iranian semi 27 00:01:39,680 --> 00:01:43,520 Speaker 2: official Fars news agency the passage of oil tankers through 28 00:01:43,520 --> 00:01:47,039 Speaker 2: the Strait of Hormus was halted after the Israeli actions. However, 29 00:01:47,080 --> 00:01:50,000 Speaker 2: White House Press Secretary Caroline Levitt disputed that assertion. 30 00:01:51,760 --> 00:01:53,960 Speaker 3: This is a case of what they're saying publicly is 31 00:01:53,960 --> 00:01:56,840 Speaker 3: different privately. We have seen an uptick of traffic in 32 00:01:56,880 --> 00:01:59,920 Speaker 3: the street today, and I will reiterate the President's x 33 00:02:00,000 --> 00:02:04,760 Speaker 3: expectation and demand that the Strait of Hermose is reopened immediately, 34 00:02:05,160 --> 00:02:06,360 Speaker 3: quickly and safely. 35 00:02:06,880 --> 00:02:07,880 Speaker 4: That is his expectation. 36 00:02:08,120 --> 00:02:10,600 Speaker 3: It has been relayed to him privately that that is 37 00:02:10,600 --> 00:02:13,520 Speaker 3: what's taking place in these reports publicly are false. 38 00:02:13,960 --> 00:02:16,680 Speaker 2: That's whits per Secretary Caroline Levitt and a social media 39 00:02:16,720 --> 00:02:19,200 Speaker 2: post in the past few hours. President Trump warns that 40 00:02:19,240 --> 00:02:22,760 Speaker 2: the US military will remain in place in and around 41 00:02:22,840 --> 00:02:26,519 Speaker 2: Dran until such time as the quote real agreement reached 42 00:02:26,919 --> 00:02:31,320 Speaker 2: is fully complied with, whilstporadock fighting continues in the Middle East. 43 00:02:31,320 --> 00:02:33,520 Speaker 2: The White House says the United States will hold direct 44 00:02:33,560 --> 00:02:35,560 Speaker 2: talks with Iran this weekend. 45 00:02:36,080 --> 00:02:37,399 Speaker 4: US Vice President JD. 46 00:02:37,520 --> 00:02:41,520 Speaker 2: Vance will lead the American delegation to Islamabad as negotiator's 47 00:02:41,560 --> 00:02:44,720 Speaker 2: face a difficult task in trying to bridge deep divisions 48 00:02:44,760 --> 00:02:45,960 Speaker 2: between the two sides. 49 00:02:46,400 --> 00:02:48,000 Speaker 4: Speaking in Hungary, he told. 50 00:02:47,800 --> 00:02:51,000 Speaker 2: Reporters Israeli action and Lebanon was never part of the 51 00:02:51,000 --> 00:02:52,320 Speaker 2: two week US ceasefire. 52 00:02:53,160 --> 00:02:56,680 Speaker 5: If Iran wants the lead this negotiation fall apart in 53 00:02:56,720 --> 00:03:00,480 Speaker 5: a conflict where they were getting hammered over Lebanon, which 54 00:03:00,520 --> 00:03:03,160 Speaker 5: has nothing to do with them, and which the United 55 00:03:03,200 --> 00:03:06,000 Speaker 5: States never once said was part of the ceasefire, that's 56 00:03:06,080 --> 00:03:08,560 Speaker 5: ultimately their choice. We think that would be dumb, but 57 00:03:08,639 --> 00:03:09,520 Speaker 5: that's their choice. 58 00:03:10,160 --> 00:03:12,320 Speaker 2: The Vice president out of that Israel had agreed to 59 00:03:12,400 --> 00:03:15,200 Speaker 2: check themselves a little bit in Lebanon in support of 60 00:03:15,240 --> 00:03:19,639 Speaker 2: the negotiations. He also warned Iran against resuming any hostilities. 61 00:03:21,360 --> 00:03:24,040 Speaker 5: The president of the United States is saying that unless 62 00:03:24,080 --> 00:03:26,440 Speaker 5: the Iranians do the right thing, he is going to 63 00:03:26,480 --> 00:03:29,079 Speaker 5: have some serious consequences for the regime. We obviously don't 64 00:03:29,120 --> 00:03:31,920 Speaker 5: want the people of Iran to suffer, but we have 65 00:03:32,080 --> 00:03:34,679 Speaker 5: a lot of leverage the President of United States could use, 66 00:03:34,880 --> 00:03:36,400 Speaker 5: and it's why I think it's so important for the 67 00:03:36,400 --> 00:03:39,040 Speaker 5: Iranians to be negotiators in good faith. 68 00:03:39,720 --> 00:03:42,560 Speaker 2: Jeddie Vance was speaking as Donald Trump added to confusion 69 00:03:42,600 --> 00:03:45,720 Speaker 2: around the talks, shifting his stance over what issues the 70 00:03:45,840 --> 00:03:50,160 Speaker 2: US and Iran will negotiate. Trump described a fifteen point 71 00:03:50,280 --> 00:03:53,400 Speaker 2: US proposal as the basis for talks, rather than Tehran's 72 00:03:53,480 --> 00:03:56,280 Speaker 2: ten point list, which both countries had referenced as a 73 00:03:56,280 --> 00:04:00,520 Speaker 2: starting point the night before. The Iranian proposal includes such 74 00:04:00,520 --> 00:04:03,240 Speaker 2: as control over the Strait of Hormus and the right 75 00:04:03,400 --> 00:04:07,880 Speaker 2: to a uranium enrichment, both considered clear red lines for Washington. 76 00:04:09,040 --> 00:04:12,160 Speaker 2: The United States is pressing European countries to present concrete 77 00:04:12,200 --> 00:04:15,520 Speaker 2: plans to secure transit through the Strait of Hormus within days, 78 00:04:15,880 --> 00:04:19,400 Speaker 2: a senior NATO official told Bloomberg. The request was presented 79 00:04:19,480 --> 00:04:22,719 Speaker 2: during a meeting between President Trump and NATO Secretary General 80 00:04:22,760 --> 00:04:26,840 Speaker 2: Mark Rutta yesterday. Former US State Department official Barber Leef 81 00:04:27,040 --> 00:04:29,440 Speaker 2: says the us IS treated members of the Alliance poorly 82 00:04:29,560 --> 00:04:30,480 Speaker 2: during the conflict. 83 00:04:31,320 --> 00:04:34,080 Speaker 6: They were not consulted at the front end of this 84 00:04:34,240 --> 00:04:37,560 Speaker 6: before the war, and then they were simply pushed to 85 00:04:37,720 --> 00:04:43,760 Speaker 6: join or to support in some fashion ill defined join 86 00:04:43,839 --> 00:04:47,560 Speaker 6: in operation for which they too had no understanding what the. 87 00:04:49,160 --> 00:04:50,040 Speaker 4: End goals were. 88 00:04:50,200 --> 00:04:52,719 Speaker 6: Those end goals still are not well defined. 89 00:04:53,880 --> 00:04:57,040 Speaker 2: Former US Assistant Secretary of State Barbara Leef was speaking 90 00:04:57,080 --> 00:05:00,240 Speaker 2: as oil prices arising today following the biggest drop since 91 00:05:00,279 --> 00:05:03,560 Speaker 2: twenty twenty yesterday as investor's wait for shipping traffic to 92 00:05:03,600 --> 00:05:07,000 Speaker 2: resume through the Strait of Hormuz. A UK led coalition 93 00:05:07,120 --> 00:05:09,880 Speaker 2: of over forty countries has vowed to help reopen the 94 00:05:09,920 --> 00:05:14,640 Speaker 2: waterway after its closure sent global energy prices soaring now. 95 00:05:14,680 --> 00:05:16,920 Speaker 2: Donald Trump has lashed out at NATO's stance in the 96 00:05:17,000 --> 00:05:19,000 Speaker 2: Iran war following a meeting at the White House with 97 00:05:19,120 --> 00:05:23,320 Speaker 2: the Alliance's Secretary General Mark Ruta. In a truth social post, 98 00:05:23,360 --> 00:05:26,400 Speaker 2: he said NATO wasn't there when we needed them, and 99 00:05:26,440 --> 00:05:29,200 Speaker 2: they won't be there if we need them again. He 100 00:05:29,279 --> 00:05:32,200 Speaker 2: also revived his grievance over the block's refusal to hand 101 00:05:32,240 --> 00:05:35,840 Speaker 2: over Greenland, which he referred to as that big, poorly 102 00:05:35,960 --> 00:05:39,360 Speaker 2: run piece of ice. Mark Rutte gave his thoughts on 103 00:05:39,360 --> 00:05:41,560 Speaker 2: the two hour meeting in an interview at CNN. 104 00:05:42,160 --> 00:05:45,560 Speaker 7: Well, let me be absolutely clear, he is clearly disappointed 105 00:05:46,080 --> 00:05:50,080 Speaker 7: and with many Nature allies, and I can see his point. 106 00:05:50,960 --> 00:05:53,479 Speaker 7: But at the same time I was also able to 107 00:05:53,640 --> 00:05:57,640 Speaker 7: point into the fact that the large majority of European 108 00:05:57,720 --> 00:06:05,240 Speaker 7: nations has been helpful with logistics, with overflights, with making 109 00:06:05,279 --> 00:06:07,640 Speaker 7: sure that they lift up to the commitments. 110 00:06:09,120 --> 00:06:11,440 Speaker 2: NATO's Mark Rota there who had been on a mission 111 00:06:11,480 --> 00:06:15,920 Speaker 2: to the US to temper the president's displeasure towards the alliance. 112 00:06:17,600 --> 00:06:20,920 Speaker 2: Iran's president Massudpozeskian is calling on Europe to hold the 113 00:06:21,040 --> 00:06:24,520 Speaker 2: US and Israel accountable. In a call with France's President 114 00:06:24,560 --> 00:06:28,320 Speaker 2: Emmanuel Macron, the Uranian leader asked European countries to ensure 115 00:06:28,360 --> 00:06:32,120 Speaker 2: the ceasefire was enforced. After the call, Macron condemned the 116 00:06:32,160 --> 00:06:35,080 Speaker 2: strikes carried out by Israel and Lebanon. The British Prime 117 00:06:35,080 --> 00:06:38,239 Speaker 2: Minister cair Starmers and the Gulf this morning, also calling 118 00:06:38,279 --> 00:06:39,640 Speaker 2: for diplomatic solutions. 119 00:06:40,480 --> 00:06:43,159 Speaker 8: We're not getting drawn into this war. We've always acted 120 00:06:43,200 --> 00:06:46,240 Speaker 8: in collective self defense. But my job is to protect 121 00:06:46,839 --> 00:06:49,000 Speaker 8: the UK lives, of course, which is what we've been 122 00:06:49,040 --> 00:06:53,520 Speaker 8: doing here from this space, but also to collect our interests, 123 00:06:53,520 --> 00:06:56,039 Speaker 8: and it's in our interests, our national interest, to. 124 00:06:56,000 --> 00:06:57,000 Speaker 4: Get the straight upward moves. 125 00:06:57,000 --> 00:07:00,520 Speaker 2: Open Starmer's visit comes as he tries to build support 126 00:07:00,560 --> 00:07:04,040 Speaker 2: for an international coalition to police the Strait. Europe's leaders 127 00:07:04,080 --> 00:07:06,680 Speaker 2: are increasingly taking the initiative on setting out their own 128 00:07:06,760 --> 00:07:11,640 Speaker 2: approaches to ending the conflict in the Middle East, and 129 00:07:11,720 --> 00:07:14,200 Speaker 2: Meta has unveiled its latest AI model as it tries 130 00:07:14,240 --> 00:07:16,840 Speaker 2: to catch up to more well known players in the sector. 131 00:07:17,120 --> 00:07:20,600 Speaker 2: Mark Zuckerberg's companies invested billions of dollars in poaching talent 132 00:07:20,640 --> 00:07:24,760 Speaker 2: from the likes of Open Ai, Anthropic and Google. Bloomberg's 133 00:07:24,800 --> 00:07:27,840 Speaker 2: tech editor Mark Anderson says Meta's new mewse model is 134 00:07:27,880 --> 00:07:29,520 Speaker 2: a sign of the CEO's ambition. 135 00:07:30,360 --> 00:07:33,440 Speaker 9: This news Spark model is the first in a series 136 00:07:33,480 --> 00:07:35,560 Speaker 9: of models that it will be releasing. So I think 137 00:07:35,600 --> 00:07:37,360 Speaker 9: it's an acknowledgment that has a long way to go 138 00:07:37,400 --> 00:07:40,520 Speaker 9: to catch up with one anthropic chat GPT, which has 139 00:07:40,520 --> 00:07:43,680 Speaker 9: about a billion weekly users. Right, So the bar is really, 140 00:07:43,680 --> 00:07:45,720 Speaker 9: really high has a long way to go to catch 141 00:07:45,760 --> 00:07:46,600 Speaker 9: up with those rivals. 142 00:07:47,400 --> 00:07:50,400 Speaker 2: Mark Anderson adds the model's code won't be made public, 143 00:07:50,440 --> 00:07:53,560 Speaker 2: in a shift from Meta's old open source policy. The 144 00:07:53,600 --> 00:07:56,760 Speaker 2: social media giant hopes the model will improve its fleet 145 00:07:56,800 --> 00:08:01,200 Speaker 2: of apps, from Instagram to Facebook to whatp and those 146 00:08:01,200 --> 00:08:03,320 Speaker 2: are our top stories on the markets this morning. Oil 147 00:08:03,360 --> 00:08:05,840 Speaker 2: price is rising two point nine percent for Brent Crewe 148 00:08:05,880 --> 00:08:08,840 Speaker 2: this morning ninety seven dollars and forty six cents, so 149 00:08:08,880 --> 00:08:11,760 Speaker 2: still holding on too much of yesterday's losses, but ching 150 00:08:11,840 --> 00:08:14,800 Speaker 2: up towards one hundred dollars a barrel again as uncertainty 151 00:08:14,800 --> 00:08:18,400 Speaker 2: continues over the Straight of Horror moves in Asia, Equity 152 00:08:18,400 --> 00:08:20,200 Speaker 2: markets are in the red then one percent now for 153 00:08:20,240 --> 00:08:23,040 Speaker 2: the MSCI Asia Pacific Index. European stock futures are two 154 00:08:23,120 --> 00:08:26,720 Speaker 2: tenths of one percent lower. This morning, in a moment, 155 00:08:26,760 --> 00:08:28,720 Speaker 2: will bring you the latest on how the fragile Middlely 156 00:08:28,760 --> 00:08:31,400 Speaker 2: ceasefire is still preventing ships from traveling through the Straight 157 00:08:31,440 --> 00:08:33,600 Speaker 2: of Horror moves, Plus more on our reporting on what 158 00:08:33,640 --> 00:08:36,800 Speaker 2: the US wants from its European allies when it comes 159 00:08:36,880 --> 00:08:40,439 Speaker 2: to securing the waterway. Just to mention another story that 160 00:08:40,480 --> 00:08:43,559 Speaker 2: I've been reading this morning about whether talking up AI's 161 00:08:43,760 --> 00:08:47,160 Speaker 2: dangers is working as a sales pitch for the technology. 162 00:08:47,200 --> 00:08:50,080 Speaker 2: Bloomber companion columnst parme Olsen has been writing about this, 163 00:08:50,280 --> 00:08:53,480 Speaker 2: pointing to comments like those from open Aiyes Sam Altman 164 00:08:53,559 --> 00:08:56,559 Speaker 2: back in twenty twenty three talking about existential risk from 165 00:08:56,559 --> 00:08:59,680 Speaker 2: the technology that's been downgraded in a conversation, now to 166 00:09:00,080 --> 00:09:03,520 Speaker 2: talking about AI as a job killer. The latest version 167 00:09:03,520 --> 00:09:06,160 Speaker 2: of this comes from Anthropic CEO, warning that its upcoming 168 00:09:06,200 --> 00:09:09,120 Speaker 2: mythos model can find flaws and software programs and it's 169 00:09:09,160 --> 00:09:12,959 Speaker 2: thus too dangerous to disseminate except to selected companies. 170 00:09:13,360 --> 00:09:13,480 Speaker 5: Now. 171 00:09:13,520 --> 00:09:16,839 Speaker 2: Parmei writes that all of this seemingly brutal honesty about 172 00:09:16,880 --> 00:09:20,440 Speaker 2: AI comes the strong whiff of a marketing strategy, and 173 00:09:20,480 --> 00:09:22,600 Speaker 2: she points to studies that go back as far as 174 00:09:22,600 --> 00:09:25,120 Speaker 2: the nineteen forties showing that you can make an argument 175 00:09:25,200 --> 00:09:29,200 Speaker 2: more persuasive if you also acknowledge its weaknesses, especially with 176 00:09:29,679 --> 00:09:32,880 Speaker 2: educated or skeptical audiences. And she says that well, there's 177 00:09:33,000 --> 00:09:36,720 Speaker 2: no evidence yet of the alleged white collar job bloodbath 178 00:09:36,760 --> 00:09:40,520 Speaker 2: being called by AI, it doesn't perhaps stop some executives 179 00:09:40,559 --> 00:09:42,800 Speaker 2: using AI as an excuse to lay people off, and 180 00:09:42,840 --> 00:09:47,080 Speaker 2: perhaps the AI washing that's taking place might show that 181 00:09:47,120 --> 00:09:50,040 Speaker 2: many people are leaning into this idea of talking about 182 00:09:50,040 --> 00:09:53,280 Speaker 2: the dangers of AI for their own advantages. Really interesting 183 00:09:53,280 --> 00:09:56,920 Speaker 2: piece you can read at Bloomberg dot com Forward Slash Opinion. Well, 184 00:09:57,000 --> 00:09:59,400 Speaker 2: let's return to the situation in the Middle East. Questions 185 00:09:59,400 --> 00:10:01,840 Speaker 2: over this to b of the ceasefire. Their oil price 186 00:10:01,920 --> 00:10:05,120 Speaker 2: is ticking up today after yesterday's massive job are Managing 187 00:10:05,240 --> 00:10:07,720 Speaker 2: editor for Energy and Commodities in Asia, Clara Ferra Marquez 188 00:10:07,800 --> 00:10:08,320 Speaker 2: joins us. 189 00:10:08,200 --> 00:10:10,679 Speaker 4: Now from More Clara, good to talk to you. 190 00:10:11,040 --> 00:10:14,040 Speaker 2: What do today's price moves oil moving higher tell us 191 00:10:14,080 --> 00:10:17,960 Speaker 2: about the market perceptions of the stability of this ceasefire. 192 00:10:19,160 --> 00:10:20,760 Speaker 10: I think it tells you a little bit about the 193 00:10:20,920 --> 00:10:23,920 Speaker 10: caution in the market. I think people are waiting at 194 00:10:23,920 --> 00:10:26,680 Speaker 10: this point, and there's a huge amount of skepticism for 195 00:10:26,760 --> 00:10:30,679 Speaker 10: all the reasons that E've outlined earlier when you were 196 00:10:30,679 --> 00:10:32,640 Speaker 10: going through the news. I mean, we have two very 197 00:10:32,679 --> 00:10:37,360 Speaker 10: different views of of what this ceasefire actually includes, and 198 00:10:37,440 --> 00:10:40,360 Speaker 10: we haven't seen a huge amount of traffic going through, 199 00:10:40,400 --> 00:10:43,400 Speaker 10: in fact lower than we've seen in recent days. So 200 00:10:43,480 --> 00:10:45,240 Speaker 10: all of that is pushing people to be a little 201 00:10:45,240 --> 00:10:47,360 Speaker 10: bit more cautious and pushing the price up. They do 202 00:10:47,440 --> 00:10:49,560 Speaker 10: not think it is completely dead, however, because we're not 203 00:10:49,559 --> 00:10:53,920 Speaker 10: seeing a full reversal even of yesterday's yesterday's moves, which 204 00:10:54,000 --> 00:10:56,120 Speaker 10: of course we would see if they thought this was 205 00:10:56,440 --> 00:10:59,120 Speaker 10: a return to the status quo ante or something worse. 206 00:11:00,240 --> 00:11:02,440 Speaker 4: What is the state of traffic through the strait of 207 00:11:02,440 --> 00:11:03,320 Speaker 4: horror moves? Today? 208 00:11:03,360 --> 00:11:05,720 Speaker 2: The White House has again said that it expects the 209 00:11:05,720 --> 00:11:07,520 Speaker 2: waterway to be reopened immediately. 210 00:11:09,320 --> 00:11:11,600 Speaker 10: Yes, I think that important thing is to say how 211 00:11:11,679 --> 00:11:14,280 Speaker 10: much that contrast a with reality on the ground and 212 00:11:14,360 --> 00:11:16,840 Speaker 10: be with what the Iranians are saying. So in terms 213 00:11:16,880 --> 00:11:18,680 Speaker 10: of reality on the ground, we are seeing a number 214 00:11:18,679 --> 00:11:20,640 Speaker 10: of vessels sort of hovering around the entrance to the 215 00:11:20,679 --> 00:11:24,160 Speaker 10: strait on the Persian Gulf side. None of them are 216 00:11:24,240 --> 00:11:26,520 Speaker 10: yet making their way through. So the only traffic that 217 00:11:26,520 --> 00:11:29,840 Speaker 10: we're seeing is not only limited, but still very closely 218 00:11:29,840 --> 00:11:32,360 Speaker 10: linked to Iran. So there's no real change. And what 219 00:11:32,400 --> 00:11:34,800 Speaker 10: we would expect to see if indeed the ceasefire holds, 220 00:11:34,840 --> 00:11:38,280 Speaker 10: is that you would see say, Saudi vessels, Katari vessels, 221 00:11:38,320 --> 00:11:42,400 Speaker 10: any vessels linked to the US or to friendly countries 222 00:11:42,480 --> 00:11:45,400 Speaker 10: or countries friendly to the US, rather than continuing very 223 00:11:45,480 --> 00:11:47,679 Speaker 10: much on Iranian terms, we have not seen that. For 224 00:11:47,720 --> 00:11:49,640 Speaker 10: the moment, what we have is just a parking lot 225 00:11:50,320 --> 00:11:52,439 Speaker 10: building up. And of course this is in line with 226 00:11:52,480 --> 00:11:55,559 Speaker 10: what the Iranians have said in their own commentary that 227 00:11:55,600 --> 00:12:00,880 Speaker 10: they expect to control traffic and that the strait remains 228 00:12:00,880 --> 00:12:01,800 Speaker 10: effectively closed. 229 00:12:02,320 --> 00:12:04,320 Speaker 2: Of course, the decision to whether or not to sail 230 00:12:04,400 --> 00:12:07,640 Speaker 2: through this waterway comes down to the shipowners and the insurers. 231 00:12:08,000 --> 00:12:10,000 Speaker 2: What have we heard from them about the sort of 232 00:12:10,040 --> 00:12:13,719 Speaker 2: assurances they need to start transiting this waterway again. 233 00:12:14,559 --> 00:12:17,240 Speaker 10: People are suddenly interested. So when we talk to shipowners, 234 00:12:17,240 --> 00:12:19,720 Speaker 10: what we're hearing is they're looking into the fine print, 235 00:12:20,120 --> 00:12:22,920 Speaker 10: but as you can imagine, they would want some clarity. 236 00:12:23,280 --> 00:12:25,120 Speaker 10: Whereas that on the one hand you have the US 237 00:12:25,200 --> 00:12:27,240 Speaker 10: telling us the strait is not only open, but there's 238 00:12:27,280 --> 00:12:29,200 Speaker 10: been an increase in traffic, and on the other hand 239 00:12:29,240 --> 00:12:32,960 Speaker 10: you have the Iranians saying that they demand for control still. 240 00:12:33,559 --> 00:12:35,240 Speaker 10: And then you have this sort of odd comment that 241 00:12:35,559 --> 00:12:38,120 Speaker 10: Donald Trump may yesterday about the US hanging out in 242 00:12:38,280 --> 00:12:40,480 Speaker 10: the Strait of Hormuds to make sure everything's going well, 243 00:12:40,480 --> 00:12:42,720 Speaker 10: which you can imagine does not go down very well 244 00:12:42,760 --> 00:12:45,400 Speaker 10: on the Iranian side. So I think what shipowners are 245 00:12:45,400 --> 00:12:47,440 Speaker 10: doing is just treating this with some degree of caution, 246 00:12:47,800 --> 00:12:50,679 Speaker 10: trying to find out a bit more. They are contacting insurers, 247 00:12:50,720 --> 00:12:53,080 Speaker 10: they are sort of in some cases even mobilizing, but 248 00:12:53,800 --> 00:12:56,680 Speaker 10: nobody is actually yet trying to speed through the strait. 249 00:12:57,800 --> 00:13:00,440 Speaker 2: Okay, Clara for Er Marquez, our managing editor for Energy 250 00:13:00,440 --> 00:13:02,880 Speaker 2: and Commodities in Asia, thank you very much for joining us. 251 00:13:05,080 --> 00:13:05,760 Speaker 4: Stay with us. 252 00:13:05,840 --> 00:13:10,240 Speaker 2: More from Bloomberg Daybreak Europe coming up after this. Bloomberg 253 00:13:10,280 --> 00:13:13,679 Speaker 2: has learned the US wants specific commitments from its European 254 00:13:13,679 --> 00:13:16,920 Speaker 2: allies on their pledge to help secure the Strait of hormones. 255 00:13:16,960 --> 00:13:20,120 Speaker 2: That's after the US President again lashed out at NATO 256 00:13:20,280 --> 00:13:22,559 Speaker 2: after his meeting with the alliance's chief Mark Rota and 257 00:13:22,600 --> 00:13:25,680 Speaker 2: the White House. Our NATO reporter Andrea Palashano joins us 258 00:13:25,679 --> 00:13:26,760 Speaker 2: now from Washington for more. 259 00:13:26,800 --> 00:13:28,320 Speaker 4: Andrea, good morning, good to talk to you. 260 00:13:28,679 --> 00:13:30,760 Speaker 2: What more can you tell us about what the US 261 00:13:30,920 --> 00:13:33,280 Speaker 2: wants from Europe on the Strait of hormus and are 262 00:13:33,320 --> 00:13:34,719 Speaker 2: they likely to agree? 263 00:13:35,760 --> 00:13:39,280 Speaker 11: So what's new now, Stephen, is that Europe finally has 264 00:13:39,400 --> 00:13:42,760 Speaker 11: a specific concrete ask of the US, which they didn't 265 00:13:42,760 --> 00:13:46,400 Speaker 11: really have before. And what the US is asking is 266 00:13:46,440 --> 00:13:50,640 Speaker 11: that Europeans and beyond Europeans also countries like Canada and 267 00:13:50,760 --> 00:13:54,000 Speaker 11: Japan who have signed onto this coalition of the willing, 268 00:13:54,480 --> 00:13:56,520 Speaker 11: is that they put their money where their mouth is 269 00:13:56,559 --> 00:13:59,559 Speaker 11: and actually deliver on this promise that they have made 270 00:13:59,840 --> 00:14:03,280 Speaker 11: to help secure freedom of navigation true to straightha Vermus. 271 00:14:03,880 --> 00:14:05,079 Speaker 4: What could be. 272 00:14:05,120 --> 00:14:09,160 Speaker 11: Worrying for allies now is that the US has demanded 273 00:14:09,440 --> 00:14:12,960 Speaker 11: an extremely quick turnaround. They want to see plans, specific 274 00:14:13,040 --> 00:14:14,040 Speaker 11: plans within days. 275 00:14:15,320 --> 00:14:15,520 Speaker 4: Yeah. 276 00:14:15,520 --> 00:14:17,240 Speaker 2: And of course how that plies out from here very 277 00:14:17,320 --> 00:14:19,960 Speaker 2: much of interest when we're thinking about the oil price 278 00:14:20,080 --> 00:14:24,240 Speaker 2: moves too. This all happened as we had Mark Grutta 279 00:14:24,440 --> 00:14:27,760 Speaker 2: in Washington for this meeting, which you're there to report 280 00:14:27,840 --> 00:14:32,160 Speaker 2: on US to porting US four. What did Donald Trump 281 00:14:32,200 --> 00:14:35,920 Speaker 2: then say about NATO after this meeting? How serious does 282 00:14:36,000 --> 00:14:40,320 Speaker 2: his threat previously stated and repeated it seems to pull 283 00:14:40,400 --> 00:14:41,120 Speaker 2: out of NATO. 284 00:14:41,320 --> 00:14:42,680 Speaker 4: How serious does that look now? 285 00:14:43,960 --> 00:14:46,160 Speaker 11: Well, what we've seen from Donald Trump is actually a 286 00:14:46,200 --> 00:14:49,600 Speaker 11: fairly for his standards, fairly muted reaction. He is only 287 00:14:50,480 --> 00:14:55,080 Speaker 11: published one truth social post after the meeting, simply repeating 288 00:14:55,120 --> 00:14:58,320 Speaker 11: the grievance that NATO allies have not helped him, making 289 00:14:58,320 --> 00:15:03,600 Speaker 11: another claim on Greenland but essentially he has not repeated 290 00:15:03,600 --> 00:15:05,920 Speaker 11: the most worrisome which is the claim that he was 291 00:15:05,960 --> 00:15:09,680 Speaker 11: going to leave NATO. And there was also no massive blowout. 292 00:15:10,000 --> 00:15:15,720 Speaker 11: There was no long press conference, there were no long pronouncements, 293 00:15:15,720 --> 00:15:18,400 Speaker 11: no ranting about NATO. So in a way, if you 294 00:15:18,600 --> 00:15:21,760 Speaker 11: observe Donald Trump's behavior, this was a rather muted reaction. 295 00:15:22,360 --> 00:15:27,200 Speaker 11: And sources tell us that actually the meetings were quite 296 00:15:27,200 --> 00:15:29,800 Speaker 11: cordial and the two men really like each other, the 297 00:15:29,840 --> 00:15:33,000 Speaker 11: bond and drs and so it does seem like even 298 00:15:33,040 --> 00:15:37,400 Speaker 11: though he didn't deliver a miraculous outcome, Mark Rutter has 299 00:15:37,440 --> 00:15:40,800 Speaker 11: managed yet again to take some steam off off of 300 00:15:40,840 --> 00:15:41,440 Speaker 11: the situation. 301 00:15:42,160 --> 00:15:45,080 Speaker 2: That's really interesting because we marcros spoke to CNN and 302 00:15:45,080 --> 00:15:47,600 Speaker 2: we heard a little bit of that interview earlier after 303 00:15:48,080 --> 00:15:51,160 Speaker 2: the meeting, and he's someone who's in the past succeeded 304 00:15:51,200 --> 00:15:55,040 Speaker 2: to talk I suppose the US president out of particularly 305 00:15:55,080 --> 00:15:57,080 Speaker 2: down from some of his threats over Greenland in the 306 00:15:57,080 --> 00:16:00,240 Speaker 2: past as well. I mean, is there a sense that 307 00:16:00,240 --> 00:16:02,720 Speaker 2: that Mark Route is going to be able to help 308 00:16:02,800 --> 00:16:06,040 Speaker 2: repair the alliance, which still seems quite fragile in a 309 00:16:06,120 --> 00:16:06,960 Speaker 2: lot of ways. 310 00:16:08,280 --> 00:16:12,960 Speaker 11: Well, there is something that not even a politician as 311 00:16:13,000 --> 00:16:15,800 Speaker 11: skilled as as Markrute can do, which is undo the 312 00:16:15,880 --> 00:16:20,040 Speaker 11: damage that all these crisis in rapid succession have done 313 00:16:20,120 --> 00:16:23,440 Speaker 11: on the alliance. NATO is an alliance that relies on 314 00:16:23,600 --> 00:16:27,360 Speaker 11: trust and on the belief. It's an act of faith right. 315 00:16:27,680 --> 00:16:31,040 Speaker 11: It relies on the belief that if one ally is attacked, 316 00:16:32,640 --> 00:16:35,320 Speaker 11: others and especially the US, will come to the rescue. 317 00:16:35,360 --> 00:16:36,800 Speaker 4: And if there is any. 318 00:16:36,560 --> 00:16:40,400 Speaker 11: Doubt that that will happen, then NATO is already in 319 00:16:40,440 --> 00:16:41,560 Speaker 11: a sense damaged. 320 00:16:43,200 --> 00:16:45,920 Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the 321 00:16:46,000 --> 00:16:49,040 Speaker 2: stories making news from London to Wall Street and beyond. 322 00:16:49,360 --> 00:16:53,360 Speaker 12: Look for us on your podcast feed every morning, on Apple, Spotify, 323 00:16:53,440 --> 00:16:55,520 Speaker 12: and anywhere else you get your podcasts. 324 00:16:55,560 --> 00:16:58,600 Speaker 2: You can also listen live each morning on London DAB Radio, 325 00:16:58,640 --> 00:17:01,359 Speaker 2: the Bloomberg Business app on Bloomberg dot com. 326 00:17:01,360 --> 00:17:04,160 Speaker 12: Our flagship New York station, is also available on your 327 00:17:04,160 --> 00:17:08,879 Speaker 12: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 328 00:17:09,119 --> 00:17:10,440 Speaker 12: I'm Caroline Hepka and. 329 00:17:10,359 --> 00:17:11,160 Speaker 4: I'm Stephen Carol. 330 00:17:11,240 --> 00:17:13,600 Speaker 2: Join us again tomorrow morning for all the news you 331 00:17:13,640 --> 00:17:18,720 Speaker 2: need to start your day right here on Bloomberg Daybreak Europe.