1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:09,680 --> 00:00:12,920 Speaker 2: This is the Bloomberg DBAQ podcast. Good morning, It's Tuesday, 3 00:00:12,960 --> 00:00:16,400 Speaker 2: the twenty seventh of January. I'm Caroline Hepka in London and. 4 00:00:16,360 --> 00:00:19,520 Speaker 1: I'm Stephen Caroline Brussels. Coming up today, the UK Prime 5 00:00:19,520 --> 00:00:23,280 Speaker 1: Minister Kiir Starmer tells Bloomberg that Britain can have closer 6 00:00:23,360 --> 00:00:26,800 Speaker 1: ties to Beijing without angering the United States. 7 00:00:27,480 --> 00:00:31,640 Speaker 2: President Trump threatened South Korea with twenty five percent tariffs 8 00:00:31,800 --> 00:00:36,080 Speaker 2: in a sign more US trade deals remain subject to change. 9 00:00:36,320 --> 00:00:40,200 Speaker 1: Plus cracks in an immigration crackdown. Trump's US border Patrol 10 00:00:40,240 --> 00:00:44,400 Speaker 1: commander is leaving Minneapolis following a public and political outcry 11 00:00:44,520 --> 00:00:47,839 Speaker 1: over the killing of two American citizens by federal agents. 12 00:00:48,280 --> 00:00:50,360 Speaker 3: Let's start with the roundup of our top stories. 13 00:00:50,760 --> 00:00:53,400 Speaker 1: The British Prime Minister, Kiir Starmer has told Bloomberg the 14 00:00:53,479 --> 00:00:57,080 Speaker 1: UK doesn't have to choose between the United States and China. 15 00:00:57,520 --> 00:01:00,440 Speaker 1: The labor leader will head to Beijing later as he 16 00:01:00,480 --> 00:01:03,760 Speaker 1: seeks to course closer relations with the world's second largest 17 00:01:03,800 --> 00:01:07,040 Speaker 1: economy while not drawing the ire of the US President. 18 00:01:07,440 --> 00:01:10,440 Speaker 1: In an exclusive interview with our UK political editor Alex 19 00:01:10,440 --> 00:01:14,360 Speaker 1: wickham Stara discussed what he sees as significant opportunities for 20 00:01:14,440 --> 00:01:18,800 Speaker 1: British businesses in China with Moore. Here's Bloomberg's crispet. 21 00:01:19,080 --> 00:01:21,600 Speaker 4: Starmer's trip to China is the first by a British 22 00:01:21,600 --> 00:01:24,520 Speaker 4: Prime minister in eight years, and it comes just days 23 00:01:24,560 --> 00:01:27,960 Speaker 4: after his Canadian counterpartner Mark Carney was threatened with one 24 00:01:28,040 --> 00:01:32,000 Speaker 4: hundred percent tariffs by President Trump following his own trip 25 00:01:32,040 --> 00:01:35,960 Speaker 4: to Beijing. But Starmer insists he can meet China's President 26 00:01:36,040 --> 00:01:40,040 Speaker 4: Sijingping without angering the White House. Speaking to Bloomberg, he 27 00:01:40,080 --> 00:01:44,080 Speaker 4: said quote, I'm often invited to simply choose between countries. 28 00:01:44,480 --> 00:01:47,360 Speaker 4: I don't do that. Reflecting on a week of turbulent 29 00:01:47,400 --> 00:01:51,000 Speaker 4: diplomacy with the US, Starmer indicated that the UK will 30 00:01:51,040 --> 00:01:53,760 Speaker 4: now have to forge closer military links with the EU, 31 00:01:54,200 --> 00:01:56,720 Speaker 4: as he pointed to what he described as a mature 32 00:01:56,760 --> 00:02:00,880 Speaker 4: relationship with the US President, adding that the UK navigated 33 00:02:01,000 --> 00:02:05,400 Speaker 4: last week's challenges with pragmatism and common sense in London 34 00:02:05,520 --> 00:02:07,120 Speaker 4: Chris Pitt Bloomberg Radio. 35 00:02:08,280 --> 00:02:11,320 Speaker 2: In that interview, the Prime Minister also hit back at 36 00:02:11,360 --> 00:02:14,560 Speaker 2: talk of a challenge to his leadership, saying he has 37 00:02:14,639 --> 00:02:16,600 Speaker 2: a personal mandate for change. 38 00:02:16,760 --> 00:02:18,400 Speaker 3: Bloomberg's Un Potts has. 39 00:02:18,280 --> 00:02:21,560 Speaker 5: More Kis Thomas says he was elected in twenty twenty 40 00:02:21,560 --> 00:02:24,880 Speaker 5: four with a landslide majority to deliver change for the country. 41 00:02:25,480 --> 00:02:28,160 Speaker 5: Speaking in our Downing Street interview, the Prime Minister may 42 00:02:28,200 --> 00:02:31,840 Speaker 5: clear he has a personal five year mandate despite some 43 00:02:31,919 --> 00:02:34,919 Speaker 5: recent polls putting Labour behind the Conservatives as well as 44 00:02:34,919 --> 00:02:37,680 Speaker 5: reform UK. Starmer told us he'll be judged at the 45 00:02:37,720 --> 00:02:39,920 Speaker 5: end of that period on the issues that matter to 46 00:02:40,040 --> 00:02:43,360 Speaker 5: working people. The Prime Minister's comments to Bloomberg come as 47 00:02:43,440 --> 00:02:46,960 Speaker 5: the BBC reports around fifty Labour mpiece of signed a 48 00:02:47,040 --> 00:02:50,720 Speaker 5: letter objecting to the decision blocking Manchester Mayor Andy Burnham 49 00:02:50,840 --> 00:02:54,480 Speaker 5: for standing for Parliament in London. I'm youwing pots, Bloomberg Radio. 50 00:02:55,560 --> 00:02:58,040 Speaker 1: He US president has threatened to raise tariffs on South 51 00:02:58,120 --> 00:03:01,000 Speaker 1: Korean goods to twenty five priscon and in a social 52 00:03:01,000 --> 00:03:03,840 Speaker 1: media post, Donald Trump said the country's lawmakers had not 53 00:03:04,000 --> 00:03:06,320 Speaker 1: lived up to the deal they agreed to and the 54 00:03:06,360 --> 00:03:09,760 Speaker 1: new rate would apply to auto's, lumber, pharmaceutical and other 55 00:03:09,800 --> 00:03:13,480 Speaker 1: products with more haris Bomberg's White House correspondent Josh we Grove. 56 00:03:13,639 --> 00:03:15,760 Speaker 6: He's essentially ripping up or at least for now, the 57 00:03:15,840 --> 00:03:18,640 Speaker 6: deal and saying that's because the Koreans are still walking in. 58 00:03:18,680 --> 00:03:20,520 Speaker 6: I should note that there were a lot of question marks, 59 00:03:20,560 --> 00:03:23,560 Speaker 6: including from what the American position was about this deal, 60 00:03:23,720 --> 00:03:26,520 Speaker 6: and so this is another case for countries that are 61 00:03:26,520 --> 00:03:28,760 Speaker 6: looking at this, including the EU and the UK that 62 00:03:28,800 --> 00:03:31,160 Speaker 6: had their deals in that then saw the Greenland tarraff 63 00:03:31,240 --> 00:03:35,000 Speaker 6: threat come in. The Trump's deals aren't necessarily locked in. 64 00:03:36,120 --> 00:03:39,120 Speaker 1: Bloomberg's Josh Wein Grove speaking there as South Korea's government 65 00:03:39,160 --> 00:03:43,000 Speaker 1: said it hasn't yet received any formal notification or detailed 66 00:03:43,040 --> 00:03:47,480 Speaker 1: explanation from the US regarding Trump's post untruth social. 67 00:03:48,280 --> 00:03:51,840 Speaker 2: The European Union and India are expected to announce an 68 00:03:51,880 --> 00:03:56,680 Speaker 2: agreement on a long awaited trade deal today after concluding talks. 69 00:03:57,080 --> 00:04:01,600 Speaker 2: Tariff's on most consumer and industrial goods between the regions 70 00:04:01,640 --> 00:04:05,040 Speaker 2: will be lowered onto the agreement. The announcement comes just 71 00:04:05,120 --> 00:04:08,000 Speaker 2: days after the EU signed a separate trade deal with 72 00:04:08,120 --> 00:04:11,960 Speaker 2: the Mercosur Blanc of South American countries as it seeks 73 00:04:11,960 --> 00:04:15,200 Speaker 2: to pivot away from the US and China. The pact 74 00:04:15,320 --> 00:04:18,600 Speaker 2: is expected to be formally signed after legal vetting and 75 00:04:18,800 --> 00:04:21,080 Speaker 2: European parliamentary ratification. 76 00:04:23,240 --> 00:04:26,320 Speaker 1: Gold Is Holding above five thousand dollars announce as a week, 77 00:04:26,400 --> 00:04:29,400 Speaker 1: US dollar helps to extend a blistering rally for the 78 00:04:29,440 --> 00:04:33,640 Speaker 1: precious metal, fueled by geopolitical risks and investor flight from 79 00:04:33,680 --> 00:04:37,520 Speaker 1: sovereign bonds and currencies. Bullying jumped again today to record 80 00:04:37,520 --> 00:04:40,320 Speaker 1: its seventh straight day of gains, is a key measure 81 00:04:40,360 --> 00:04:43,479 Speaker 1: of the dollars sank amid speculation the US may help 82 00:04:43,560 --> 00:04:48,280 Speaker 1: Japan to support the yen. Meanwhile, America's increasing isolation from 83 00:04:48,320 --> 00:04:51,680 Speaker 1: other nations is convincing many investors to cut holdings of 84 00:04:51,760 --> 00:04:54,840 Speaker 1: dollar assets and switch to gold. That's according to Europe's 85 00:04:54,880 --> 00:04:56,600 Speaker 1: largest money manager, Amundi. 86 00:04:57,880 --> 00:04:58,760 Speaker 3: President Tromps. 87 00:04:58,839 --> 00:05:03,520 Speaker 2: US border Patrol commander is expected to leave Minneapolis following 88 00:05:03,520 --> 00:05:07,000 Speaker 2: a public outcry over the killing of two US citizens 89 00:05:07,240 --> 00:05:11,360 Speaker 2: by federal agents in recent weeks. Gregory Bavino has been 90 00:05:11,400 --> 00:05:15,200 Speaker 2: the face of a sweeping US immigration crackdown. White House 91 00:05:15,200 --> 00:05:19,080 Speaker 2: Press Secretary Caroline Levitt says the administration is sending Bordozare 92 00:05:19,240 --> 00:05:22,440 Speaker 2: Tom Hoeman to the city to ease tensions. 93 00:05:23,120 --> 00:05:25,600 Speaker 7: Mister Holman is doing an exceptional job, and he has 94 00:05:25,640 --> 00:05:28,120 Speaker 7: been working with Secretary Noome and President Trump over the 95 00:05:28,200 --> 00:05:30,920 Speaker 7: course of the last year. A Secretary Nome still has 96 00:05:30,960 --> 00:05:33,200 Speaker 7: the utmost confidence and trust of the President of the 97 00:05:33,279 --> 00:05:36,799 Speaker 7: United States, and she's continuing to oversee the entire Department 98 00:05:36,839 --> 00:05:39,920 Speaker 7: of Homeland Security in all of the immigration enforcement that's 99 00:05:39,920 --> 00:05:42,279 Speaker 7: taking place across the whole entire country. 100 00:05:43,279 --> 00:05:46,560 Speaker 2: Caroline Levitt there praising Homan, who is set to meet 101 00:05:46,640 --> 00:05:50,640 Speaker 2: with the Minneapolis mayor, Jacob Pray today to discuss coordination 102 00:05:50,760 --> 00:05:55,200 Speaker 2: between federal and local law enforcement. Meanwhile, Senate Democrats are 103 00:05:55,279 --> 00:05:59,839 Speaker 2: resisting approving funding for the Department for Homeland Security without 104 00:06:00,120 --> 00:06:04,719 Speaker 2: new safeguards, increasing the likelihood of another US government shut 105 00:06:04,760 --> 00:06:10,160 Speaker 2: down as the thirtieth of January deadline looms. And those 106 00:06:10,240 --> 00:06:12,720 Speaker 2: are our top stories for you this morning. Looking at 107 00:06:12,720 --> 00:06:16,520 Speaker 2: the market, so stocks are extending their rally. You have 108 00:06:16,560 --> 00:06:19,200 Speaker 2: the masci Asia Pacific Index up by eight tens of 109 00:06:19,200 --> 00:06:22,080 Speaker 2: one percent this morning, the Your Country World Index just 110 00:06:22,160 --> 00:06:25,120 Speaker 2: short of a record high. The yen is week after 111 00:06:25,160 --> 00:06:28,760 Speaker 2: two days of gains. Gold is still above five thousand dollars, 112 00:06:28,760 --> 00:06:30,520 Speaker 2: so a second day in a row. We're up something 113 00:06:30,560 --> 00:06:34,840 Speaker 2: like seventeen percent for bullion year to date, and you 114 00:06:34,880 --> 00:06:37,960 Speaker 2: also have a silver trading close to a record high. 115 00:06:38,120 --> 00:06:41,000 Speaker 2: Four of the MAGS seven megacaps report this week. The 116 00:06:41,120 --> 00:06:43,480 Speaker 2: Cosby is up two and a half percent, the one 117 00:06:43,680 --> 00:06:46,680 Speaker 2: weakening half of one percent, and Treasury is very small 118 00:06:46,680 --> 00:06:49,480 Speaker 2: sell off four point two two percent, so yields up 119 00:06:49,520 --> 00:06:51,360 Speaker 2: a basis point. Those are the markets. 120 00:06:51,920 --> 00:06:53,400 Speaker 1: In a moment, we'll bring you more on what Keir 121 00:06:53,440 --> 00:06:56,040 Speaker 1: Starmer has been telling Bloomberg ahead of his trip to China, 122 00:06:56,120 --> 00:06:59,520 Speaker 1: plus the latest on the farlight from the US immigration crackdown, 123 00:07:00,240 --> 00:07:03,000 Speaker 1: the story that we've been reading this morning. The documentary 124 00:07:03,040 --> 00:07:07,799 Speaker 1: about Milania Trump struggling to fill cinemas projections from box 125 00:07:07,800 --> 00:07:10,080 Speaker 1: office dot COM's JAST that'll take in one to two 126 00:07:10,120 --> 00:07:14,000 Speaker 1: million dollars in its first weekend, ticketing websites showing plenty 127 00:07:14,040 --> 00:07:17,720 Speaker 1: of seats available for its debut on the thirtieth of January. 128 00:07:17,760 --> 00:07:20,920 Speaker 1: Now it faces obstacles, as all documentaries do, and the 129 00:07:20,960 --> 00:07:24,040 Speaker 1: streaming era, more people want to skip cinema releases watch 130 00:07:24,080 --> 00:07:25,920 Speaker 1: it at home. But of course it's also being released 131 00:07:25,960 --> 00:07:28,520 Speaker 1: at a time when President Trump's approval ratings are at 132 00:07:28,520 --> 00:07:30,960 Speaker 1: the lowest since he returned to office, and of course 133 00:07:31,040 --> 00:07:33,800 Speaker 1: the killing of those two American citizen by federal agents 134 00:07:33,800 --> 00:07:37,840 Speaker 1: at Minnesota also adding to the controversy around the president 135 00:07:37,920 --> 00:07:38,800 Speaker 1: and the United States. 136 00:07:39,280 --> 00:07:39,440 Speaker 6: Yeah. 137 00:07:39,440 --> 00:07:43,000 Speaker 2: Absolutely, I watched the trailer, I must say, quite eagerly, 138 00:07:43,360 --> 00:07:43,640 Speaker 2: with a. 139 00:07:43,560 --> 00:07:44,320 Speaker 3: Lot of interest. 140 00:07:44,400 --> 00:07:48,600 Speaker 2: You know, the stilettos, the dresses. Millenia speaks in the trailer, 141 00:07:48,680 --> 00:07:52,440 Speaker 2: and she does so very rarely in public, so I 142 00:07:52,440 --> 00:07:55,080 Speaker 2: think there was a lot of fascination maybe that this 143 00:07:55,280 --> 00:07:58,520 Speaker 2: was the first lady a huge kind of symbolic role. 144 00:07:58,800 --> 00:08:00,760 Speaker 2: You have to say it in the US and globally, 145 00:08:01,080 --> 00:08:03,480 Speaker 2: that maybe this was her carving out a bigger role. 146 00:08:04,360 --> 00:08:07,240 Speaker 2: Will we end up knowing more about Milania Trump from 147 00:08:07,280 --> 00:08:09,880 Speaker 2: watching this movie or not? That's the question, even though 148 00:08:10,120 --> 00:08:11,920 Speaker 2: actually we don't know how many people are going to 149 00:08:11,960 --> 00:08:12,440 Speaker 2: watch it. 150 00:08:12,440 --> 00:08:15,280 Speaker 3: It's certainly lavish promotional. 151 00:08:15,840 --> 00:08:18,200 Speaker 2: I wonder whether it means a kind of bigger role 152 00:08:18,240 --> 00:08:19,640 Speaker 2: for her in public life. 153 00:08:19,920 --> 00:08:20,440 Speaker 3: Yeah, indeed. 154 00:08:20,520 --> 00:08:22,040 Speaker 1: And in the meantime, you know, there's a lot of 155 00:08:22,040 --> 00:08:24,120 Speaker 1: money being put behind it, some questions being asked about 156 00:08:24,120 --> 00:08:27,480 Speaker 1: what motivating the big marketing budgets. You know, thirty five 157 00:08:27,520 --> 00:08:30,560 Speaker 1: million dollars as well as Amazon and MGM are are 158 00:08:30,600 --> 00:08:32,559 Speaker 1: paying for marketing, and this in addition to the forty 159 00:08:32,600 --> 00:08:34,880 Speaker 1: million they paid for rights as well. So lots of 160 00:08:35,280 --> 00:08:37,840 Speaker 1: questions over the interaction between business and politics on this 161 00:08:37,880 --> 00:08:41,400 Speaker 1: front as well. But you can read our colleague Anni 162 00:08:41,600 --> 00:08:44,160 Speaker 1: Massa's piece on this on Bloomberg dot Com or put 163 00:08:44,200 --> 00:08:45,640 Speaker 1: linked it in our podcast show Notes. 164 00:08:47,040 --> 00:08:49,400 Speaker 2: Well, let's bring you more now on the UK Prime 165 00:08:49,400 --> 00:08:52,560 Speaker 2: Minister's trip to China. Kiss Darma has told Bloomberg that 166 00:08:52,600 --> 00:08:56,559 Speaker 2: the UK doesn't have to choose between the US and China. 167 00:08:56,840 --> 00:08:59,520 Speaker 2: Our chief Asia correspondent was in Mathison joins us now 168 00:08:59,559 --> 00:09:01,959 Speaker 2: for more. Well, morning, Roz, how difficult do you think 169 00:09:01,960 --> 00:09:04,040 Speaker 2: it's going to be them for Kis Starmer to strike 170 00:09:04,080 --> 00:09:06,200 Speaker 2: a balance on this trip. I mean, he's trying to 171 00:09:06,240 --> 00:09:11,120 Speaker 2: build ties with China without drawing the ire of President Trump. 172 00:09:12,480 --> 00:09:14,240 Speaker 8: Well, the good news in a way for Kis Darmer 173 00:09:14,280 --> 00:09:16,400 Speaker 8: perhaps is that he's not the only one trying to 174 00:09:16,440 --> 00:09:20,480 Speaker 8: do this. So perhaps there's some safety in numbers leaders 175 00:09:20,520 --> 00:09:23,200 Speaker 8: who are trying to build ties with China, as you say, 176 00:09:23,240 --> 00:09:28,559 Speaker 8: without drawing the ire of Donald Trump, so diversifying their relationships, 177 00:09:28,600 --> 00:09:30,600 Speaker 8: a lot of leaders are beating a path to siege 178 00:09:30,600 --> 00:09:34,000 Speaker 8: in Ping's drawing. Kis Starmer is just the latest one there. 179 00:09:34,160 --> 00:09:37,440 Speaker 8: As I was saying, the idea of diversifying your trade 180 00:09:37,480 --> 00:09:41,400 Speaker 8: relationships not all in the US basket. So maybe he's 181 00:09:41,440 --> 00:09:44,400 Speaker 8: got the cover of other leaders who are doing them same, 182 00:09:44,800 --> 00:09:48,040 Speaker 8: including Donald Trump, who's looking potentially to himself to meet 183 00:09:48,120 --> 00:09:51,040 Speaker 8: up with Sieging Ping in a few months. I mean, 184 00:09:51,080 --> 00:09:53,559 Speaker 8: obviously you want to avoid getting too much in Donald 185 00:09:53,559 --> 00:09:57,679 Speaker 8: Trump's cross hairs. And Kis Dahmer found that out firsthand 186 00:09:57,679 --> 00:10:00,880 Speaker 8: at Dubo So the Greenland when he was singled out. 187 00:10:00,960 --> 00:10:03,840 Speaker 8: And Trump has taken aim at the Canadian Prime Minister 188 00:10:03,920 --> 00:10:08,120 Speaker 8: Mark Kni in particular, threatening one hundred percent tariff on 189 00:10:08,280 --> 00:10:10,880 Speaker 8: Canadian goods if they become what he calls a drop 190 00:10:10,920 --> 00:10:14,680 Speaker 8: off point port quote for Chinese exports. So there is 191 00:10:15,480 --> 00:10:18,120 Speaker 8: you know, it's not an easy visit. It will be 192 00:10:18,160 --> 00:10:21,960 Speaker 8: a very delicate one for Starma to balance, as he says, 193 00:10:22,080 --> 00:10:23,760 Speaker 8: you know, like a lot of lease he's talking about. 194 00:10:23,760 --> 00:10:25,320 Speaker 3: We're not trying to take a side here. 195 00:10:25,840 --> 00:10:29,160 Speaker 8: He'll keep talking about the importance of the US relationship, 196 00:10:29,559 --> 00:10:32,000 Speaker 8: but equally he want to come away from this China 197 00:10:32,080 --> 00:10:35,120 Speaker 8: visit with some proper deals in the bag and to 198 00:10:35,160 --> 00:10:36,440 Speaker 8: show it's not just rhetoric. 199 00:10:37,559 --> 00:10:39,680 Speaker 1: What sort of reception can the Prime Minister hope for 200 00:10:39,840 --> 00:10:42,360 Speaker 1: then when he goes to Beijing, And I suppose what 201 00:10:42,400 --> 00:10:43,920 Speaker 1: does China want from this trip? 202 00:10:45,400 --> 00:10:47,920 Speaker 8: Well, China's already gone a win in a way in 203 00:10:48,000 --> 00:10:50,440 Speaker 8: advance of this trip with the news of the approval 204 00:10:50,480 --> 00:10:53,320 Speaker 8: of the new Mega MBC site in London, so that's 205 00:10:53,360 --> 00:10:56,920 Speaker 8: paved the way quite a bit. And China, you would imagine, 206 00:10:56,920 --> 00:11:00,600 Speaker 8: we'll want to see business investment, trade arrange. It's coming 207 00:11:00,640 --> 00:11:04,160 Speaker 8: from this and that seems to fit with STARMA prioritized 208 00:11:04,200 --> 00:11:08,240 Speaker 8: in the economic side, perhaps dialing down criticism a little 209 00:11:08,280 --> 00:11:11,640 Speaker 8: bit on things like human rights. Starmer says he'll manage, 210 00:11:11,679 --> 00:11:15,000 Speaker 8: He'll raise those issues, but it's likely to be on. 211 00:11:15,000 --> 00:11:16,079 Speaker 3: A bit of a lower bore. 212 00:11:16,600 --> 00:11:18,600 Speaker 8: So China will want to see that, and they're pretty 213 00:11:18,640 --> 00:11:20,720 Speaker 8: good at rolling out the red carpet with lots of 214 00:11:20,800 --> 00:11:24,800 Speaker 8: pomp and lots of ceremony, and Sigmpin will want to 215 00:11:24,840 --> 00:11:27,760 Speaker 8: show its business as usual despite a very big purge 216 00:11:27,800 --> 00:11:31,280 Speaker 8: that's just gone on of his most senior general, so 217 00:11:31,320 --> 00:11:34,480 Speaker 8: he'll want to avoid Starma potentially weighing in on that. 218 00:11:34,679 --> 00:11:38,640 Speaker 8: So as long as it stays really much focused on business, trade, investment, 219 00:11:39,160 --> 00:11:40,839 Speaker 8: both sides will probably see that as a win. 220 00:11:42,280 --> 00:11:45,160 Speaker 2: In terms of this visits, it comes at a time 221 00:11:45,320 --> 00:11:49,440 Speaker 2: when Trump is ramping up tariff threats again against South Korea. 222 00:11:49,520 --> 00:11:52,440 Speaker 2: This time, does the risk of trade escalation from the 223 00:11:52,559 --> 00:11:56,679 Speaker 2: US just hang over all of this over diplomatic efforts. 224 00:11:57,800 --> 00:12:00,520 Speaker 8: Yeah, he does like to threaten a tariff, doesn't. I mean, 225 00:12:00,559 --> 00:12:03,720 Speaker 8: he's been threatening tariffs again lately on countries doing business 226 00:12:03,720 --> 00:12:07,720 Speaker 8: with Iran, and he hasn't seemingly followed through on that. 227 00:12:07,880 --> 00:12:11,800 Speaker 8: He threatened taris over Greenland against European allies, he didn't 228 00:12:11,840 --> 00:12:15,440 Speaker 8: follow through on that, and of course the threat against Canada. Now, 229 00:12:15,760 --> 00:12:18,320 Speaker 8: so the question for South Korea probably is how serious 230 00:12:18,480 --> 00:12:22,280 Speaker 8: is he, as you say, looking to hike tariff's there 231 00:12:22,480 --> 00:12:26,440 Speaker 8: to twenty five percent because the Parliament's not codified their 232 00:12:26,480 --> 00:12:30,360 Speaker 8: trade deal. But with Trump, there's just that endless risk 233 00:12:30,400 --> 00:12:33,880 Speaker 8: of a whiplash. He changes his mind, he says something 234 00:12:33,920 --> 00:12:37,480 Speaker 8: will happen, and then it doesn't necessarily or it partially happens. 235 00:12:37,480 --> 00:12:40,120 Speaker 8: And of course the court may rule, the Supreme Court 236 00:12:40,160 --> 00:12:42,679 Speaker 8: may rule against his tariff regime or a large chunk 237 00:12:42,679 --> 00:12:46,040 Speaker 8: of it fairly soon either way. But it does add 238 00:12:46,080 --> 00:12:49,080 Speaker 8: that element of risk, you know, to planning for companies 239 00:12:49,600 --> 00:12:52,120 Speaker 8: as well as countries. How do you do long term 240 00:12:52,160 --> 00:12:54,920 Speaker 8: business planning? Do you look through all of these threats? 241 00:12:55,400 --> 00:12:57,240 Speaker 8: You know, you don't want to be particularly in Donald 242 00:12:57,280 --> 00:13:01,360 Speaker 8: Trump's cross hairs. So how do you stay out of 243 00:13:01,400 --> 00:13:04,960 Speaker 8: the way without, you know, completely feeling like you're trying 244 00:13:05,000 --> 00:13:07,040 Speaker 8: to avoid any kind of fight with him whatsoever? 245 00:13:08,080 --> 00:13:11,800 Speaker 1: Okay, Ras, thanks so much, our chief Asia correspondents Rosalad Mathison. 246 00:13:11,840 --> 00:13:17,320 Speaker 1: There stay with us. More from Bloomberg Daybreak Europe coming 247 00:13:17,400 --> 00:13:18,319 Speaker 1: up after this. 248 00:13:20,920 --> 00:13:21,199 Speaker 3: Well. 249 00:13:21,280 --> 00:13:25,760 Speaker 2: Meanwhile, President Trump has signaled some change to his deportation 250 00:13:25,960 --> 00:13:30,280 Speaker 2: crackdown in Minnesota after a growing public outcry over the 251 00:13:30,360 --> 00:13:33,839 Speaker 2: killing of two US citizens, Alex Pretty and Renee Good 252 00:13:34,120 --> 00:13:37,520 Speaker 2: by federal agents. We've been discussing this with our senior 253 00:13:37,679 --> 00:13:41,480 Speaker 2: US Government editor, Derrek Wallbank, and started by asking him 254 00:13:41,720 --> 00:13:44,880 Speaker 2: what changes are being made in Minnesota. 255 00:13:45,320 --> 00:13:50,480 Speaker 9: It's been a really, really consequential day in Washington. We 256 00:13:50,559 --> 00:13:54,280 Speaker 9: started getting some signals early in the day that sounded 257 00:13:54,320 --> 00:13:58,480 Speaker 9: like the Trump administration was having a rethink about its 258 00:13:58,840 --> 00:14:03,760 Speaker 9: very aggressive immigration enforcement policies that are really right now 259 00:14:03,920 --> 00:14:09,400 Speaker 9: centered on Minneapolis, not exclusively, but kind of centered on Minneapolis, 260 00:14:09,760 --> 00:14:13,800 Speaker 9: that have resulted in the two high profile deaths that 261 00:14:13,880 --> 00:14:14,600 Speaker 9: you mentioned. 262 00:14:14,720 --> 00:14:15,439 Speaker 3: And as the. 263 00:14:15,480 --> 00:14:20,080 Speaker 9: Day came on, it became clearer that yes, there was 264 00:14:20,200 --> 00:14:25,120 Speaker 9: the starting of a pretty substantial rethink here, you know, 265 00:14:25,240 --> 00:14:29,640 Speaker 9: and you would say that in Washington, personnel is policy. 266 00:14:30,200 --> 00:14:32,200 Speaker 9: And by the end of the day there were multiple 267 00:14:32,240 --> 00:14:37,640 Speaker 9: reports that the border patrol commander, who had been sort 268 00:14:37,640 --> 00:14:40,640 Speaker 9: of the face of the effort, was going to be 269 00:14:40,720 --> 00:14:48,400 Speaker 9: removed from Minneapolis, potentially as soon as tomorrow. And Donald 270 00:14:48,440 --> 00:14:52,040 Speaker 9: Trump is bringing in Tom Homan, who is you know, 271 00:14:52,160 --> 00:14:56,240 Speaker 9: his borders are somebody that he has a lot of 272 00:14:56,280 --> 00:14:58,960 Speaker 9: faith in, but is a different face. Had not really 273 00:14:59,000 --> 00:15:02,240 Speaker 9: been involved in the situation in Minnesota at all. 274 00:15:02,360 --> 00:15:04,160 Speaker 3: And Homan, among other. 275 00:15:04,000 --> 00:15:07,280 Speaker 9: Things, he's very much an immigration hardliner, but he's very 276 00:15:07,320 --> 00:15:13,320 Speaker 9: much known for focusing on people who have removal orders, 277 00:15:13,480 --> 00:15:17,640 Speaker 9: who are in the United States without correct paperwork and 278 00:15:17,680 --> 00:15:21,120 Speaker 9: things like that, rather than what has been seen by 279 00:15:21,200 --> 00:15:24,600 Speaker 9: many to be a more indiscriminate effort that is currently 280 00:15:24,640 --> 00:15:26,520 Speaker 9: ongoing in Minnesota. 281 00:15:26,680 --> 00:15:28,720 Speaker 1: Derek, can you give us a sense of how this 282 00:15:28,800 --> 00:15:31,600 Speaker 1: issue is playing out in the US and how big 283 00:15:31,640 --> 00:15:35,160 Speaker 1: a political issue it is now for the Trump administration. 284 00:15:36,840 --> 00:15:39,480 Speaker 9: I think it's a very large political issue for the 285 00:15:39,480 --> 00:15:43,280 Speaker 9: Trump administration. You know, bear in mind that this year 286 00:15:43,400 --> 00:15:45,920 Speaker 9: walking in everyone sort of thought that the big issue 287 00:15:45,920 --> 00:15:48,480 Speaker 9: in the elections that are upcoming in November was going 288 00:15:48,520 --> 00:15:51,960 Speaker 9: to be the issue of affordability, and that probably is 289 00:15:52,000 --> 00:15:54,920 Speaker 9: still the case, but this is one of those things 290 00:15:54,920 --> 00:15:58,800 Speaker 9: that is breaking through in a very large way for 291 00:15:58,960 --> 00:16:02,920 Speaker 9: people who don't really follow politics an awful lot. And 292 00:16:03,160 --> 00:16:06,120 Speaker 9: that's sort of a distinction I have to make here. Right, 293 00:16:06,560 --> 00:16:08,920 Speaker 9: you have in the US a lot of a left 294 00:16:09,000 --> 00:16:11,320 Speaker 9: right divide about a lot of things that might be 295 00:16:11,400 --> 00:16:14,160 Speaker 9: going on. But when you start getting a lot of 296 00:16:14,240 --> 00:16:18,480 Speaker 9: independence in there who really have other things going on 297 00:16:18,560 --> 00:16:21,160 Speaker 9: in their lives, have day jobs that are very involved, 298 00:16:21,160 --> 00:16:23,960 Speaker 9: and they don't really talk about politics a lot, but 299 00:16:24,120 --> 00:16:27,400 Speaker 9: this becomes the big thing that everyone's talking about. It 300 00:16:27,480 --> 00:16:30,640 Speaker 9: has broken through in a substantial way, and you've already 301 00:16:30,680 --> 00:16:33,120 Speaker 9: walking to this moment seen opinion polls sort of go 302 00:16:33,240 --> 00:16:39,000 Speaker 9: against the White House among independents, and this is sort 303 00:16:39,000 --> 00:16:39,920 Speaker 9: of another thing. 304 00:16:40,040 --> 00:16:40,440 Speaker 6: I think. 305 00:16:41,920 --> 00:16:45,120 Speaker 9: One of the things that we've noticed here is that 306 00:16:45,680 --> 00:16:48,680 Speaker 9: a lot of this has been recorded. There has been 307 00:16:48,720 --> 00:16:55,760 Speaker 9: a lot made, I think quite understandably so that several 308 00:16:55,800 --> 00:17:00,840 Speaker 9: of the initial comments made by officials administration official, particularly 309 00:17:01,480 --> 00:17:03,600 Speaker 9: with the Department of Homeland Security as well as that 310 00:17:05,760 --> 00:17:10,240 Speaker 9: border patrol lee that I mentioned earlier, have seemed to 311 00:17:10,280 --> 00:17:13,399 Speaker 9: not quite match with what people then saw on video 312 00:17:13,480 --> 00:17:16,520 Speaker 9: with their own eyes, and that's been something that I 313 00:17:16,520 --> 00:17:20,000 Speaker 9: think has been quite disconcerting. There's reporting now that people 314 00:17:20,040 --> 00:17:22,959 Speaker 9: have gone to the President and basically said, look, you know, 315 00:17:23,040 --> 00:17:26,480 Speaker 9: the images that are coming out of Minnesota are not 316 00:17:26,680 --> 00:17:28,679 Speaker 9: the ones that you want to be looking at. And 317 00:17:28,760 --> 00:17:33,360 Speaker 9: Donald Trump is nothing if not a very astute person 318 00:17:33,440 --> 00:17:37,960 Speaker 9: who grew up politically in the form of television, right 319 00:17:38,040 --> 00:17:40,879 Speaker 9: Remember he was the star of The Apprentice for a 320 00:17:41,000 --> 00:17:45,520 Speaker 9: very long time on NBC TV. Is how he comes up. 321 00:17:45,840 --> 00:17:49,840 Speaker 9: He consumes an awful lot of media himself, and so 322 00:17:50,000 --> 00:17:53,520 Speaker 9: he will have been very aware of the images that 323 00:17:53,560 --> 00:17:57,280 Speaker 9: were going out, the things that were being broadcast, and frankly, 324 00:17:57,359 --> 00:18:01,960 Speaker 9: some of the disconnect between what was getting said initially 325 00:18:02,600 --> 00:18:06,800 Speaker 9: versus where some of the videos came out. And that's 326 00:18:06,840 --> 00:18:09,119 Speaker 9: where you see, as I say today, it was a 327 00:18:09,400 --> 00:18:14,720 Speaker 9: very clear moment early on when Donald Trump himself took 328 00:18:14,760 --> 00:18:19,840 Speaker 9: to social media and started talking about calls with the 329 00:18:19,880 --> 00:18:23,400 Speaker 9: Minnesota governor, who his administration has said they were going 330 00:18:23,440 --> 00:18:27,240 Speaker 9: to investigate. I hasten to add and to start talking 331 00:18:27,280 --> 00:18:32,240 Speaker 9: in these sort of conciliatory ways, trying to find a 332 00:18:32,400 --> 00:18:37,400 Speaker 9: way to sort of declare victory and change change the policy, 333 00:18:37,600 --> 00:18:42,680 Speaker 9: maybe shift emphasis and find a way to change the subject. 334 00:18:43,640 --> 00:18:46,399 Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the 335 00:18:46,480 --> 00:18:49,520 Speaker 1: stories making news from London to Wall Streets and beyond. 336 00:18:49,840 --> 00:18:53,800 Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify, 337 00:18:53,920 --> 00:18:56,000 Speaker 2: and anywhere else you get your podcasts. 338 00:18:56,040 --> 00:18:59,080 Speaker 1: You can also listen live each morning on London Dab Radio, 339 00:18:59,080 --> 00:19:01,800 Speaker 1: the Bloomberg Business app, and Bloomberg dot Com. 340 00:19:01,840 --> 00:19:04,600 Speaker 2: Our flagship New York station, is also available on your 341 00:19:04,640 --> 00:19:09,359 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 342 00:19:09,600 --> 00:19:11,000 Speaker 3: I'm Caroline Hepka. 343 00:19:10,760 --> 00:19:13,159 Speaker 1: And I'm Stephen Carol. Join us again tomorrow morning for 344 00:19:13,320 --> 00:19:15,680 Speaker 1: all the news you need to start your day right 345 00:19:15,720 --> 00:19:20,879 Speaker 1: here on Bloomberg Daybreak Europe.