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

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Speaker 2: This is the Blueberg DAYBAQ podcast, available every morning on Apple,

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Speaker 2: Spotify or wherever you listen. It's Wednesday, the fourteenth of

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Speaker 2: May in London. I'm Caroline Hepki.

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Speaker 3: And I'm Stephen Carroll.

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Speaker 4: Coming up today, the US prepares to unveil massive AI

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Speaker 4: chip deals with Gulf State as the Trump administration throws

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Speaker 4: out Biden era restrictions.

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Speaker 2: NATO sketches out a plan to meet President Trump's call

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Speaker 2: for five percent defense spending as the UK and EU

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Speaker 2: remain locked in talks over a common Security pact.

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Speaker 4: Plus Milan moves Italy's financial capital proves to be an

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Speaker 4: early winner in the race to attract wealthy investors after

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Speaker 4: the UK's non domb rollback.

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

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Speaker 4: The United States is clearing a path for Saudi Arabia

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Speaker 4: and the United Arab Emirates to ramp up AI spending

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Speaker 4: as the US President uses his visit to the region

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Speaker 4: to forage deeper business ties with the Gulf States. Under

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Speaker 4: agreements expected to be unveiled in the coming days, the

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Speaker 4: nations are poised to secure broader access to advanced chips

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Speaker 4: from Nvidia and AMD, which are considered the gold standard

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Speaker 4: for running AI models. Bloomberg's executive editor for Global Tech,

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Speaker 4: Peter Alstrom, says the deals should not be understated.

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Speaker 3: This is a very big deal.

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Speaker 5: I mean, at a high level, it's a sea change

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Speaker 5: really in US policy towards some of these countries and

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Speaker 5: their access to American technologies, including AI. The Biden administration

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Speaker 5: had implemented a series of curbs on what foreign countries

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Speaker 5: could buy, especially AI chips. The most advanced ones are

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Speaker 5: made by Invidio, of course, and the Biden administration had

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Speaker 5: a very complex approach a framework that they passed the

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Speaker 5: last week in office where they under this rule called

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Speaker 5: the AI diffusion Rule, there are three tiers of different

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Speaker 5: countries who get different access to different levels of chips

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Speaker 5: under that framework.

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Speaker 6: The Trump administration has now just thrown that out else

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Speaker 6: Fro'm referring there to the Trump Administration's plan to overhaul

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Speaker 6: regulations on the global export of semiconductors used in artificial intelligence.

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Speaker 4: The move would end the Biden era approach, which had

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Speaker 4: drawn strenuous objections from US allies and companies, including Nvidia

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Speaker 4: and Oracle.

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Speaker 2: In read Saudi Arabia's capital. President Trump was joined by

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Speaker 2: Crown Prince Mohammed bin Salman in hailing closer commercial relations.

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Speaker 2: The two touted plans for one trillion dollars in commercial deals.

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Speaker 2: The conference signage listed deals totaling just over three hundred

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Speaker 2: billion dollars. Earlier on Tuesday, the White House has said

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Speaker 2: the figure was six hundred billion dollars. Now, the one

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Speaker 2: trillion dollar figure roughly matches Saudi Arabia's entire gross domestic product.

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Speaker 2: Bloomberg's Nick Wadhams explains the details of these agreements will

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Speaker 2: be important.

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Speaker 7: The question here is really trying to figure out how

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Speaker 7: much of these commitments are just on paper and how

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Speaker 7: much of them are actually going to go through. That

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Speaker 7: big top line number of six hundred billion dollars that

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Speaker 7: fits with what Saudi Arabia had said it wanted to

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Speaker 7: do over the next four years and enhance trade and

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Speaker 7: investment with the US.

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Speaker 2: Blueberg's Nick Wadams in Washington, the White House says the

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Speaker 2: deals aimed to boost US industries in energy, defense, and tech,

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Speaker 2: as well as to provide access to key global resources.

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Speaker 2: Without giving full details.

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Speaker 4: The US President says a luxury jet offered by the

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Speaker 4: Katari government will be used as a temporary air Force one,

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Speaker 4: indicating he plans to accept the gift despite the legal

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Speaker 4: and ethical concerns. On social media, Donald Trump wrote that

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Speaker 4: only a fool would not accept the aircraft, as he

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Speaker 4: criticized Boeing's delays in delivering new jets for government use.

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Speaker 4: Speaking in the US Senate, Democrat minority leader Chuck Schumer

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Speaker 4: questioned the terms of the deal.

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Speaker 8: What security modifications would be needed to ensure a foreign

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Speaker 8: sourced air Force one is safe to use? If this

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Speaker 8: is as president promise a free jet, will the guitaries

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Speaker 8: pay for those highly sensitive installations or will American taxpayers

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Speaker 8: cover the cost?

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Speaker 4: Chuck Schimmer, speaking as The move has also sparked backlash

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Speaker 4: among some of the president's supporters. Commentator Ben Shapiro asked

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Speaker 4: how Trump photers would react if a Democrat had done this,

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Speaker 4: while far right activist Laura Lumer posted on x that

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Speaker 4: the gift would be a stain on the Trump administration.

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Speaker 2: NATO allies are in talks over how to boost defense

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Speaker 2: spending in a way that might answer calls from US

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Speaker 2: President Donald Trump. Bloomberg has learned that military negotiators are

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Speaker 2: discussing how countries might reach a target of five percent

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Speaker 2: spending five percent of GDP on defense in the long term,

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Speaker 2: bloombergs James Wilcock has more.

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Speaker 9: One in four NATO allies still don't spend two percent

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Speaker 9: of their GDP on defense, so setting a target of

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Speaker 9: five percent would be a major jump. But countries want

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Speaker 9: to give President Trump a win at a major NATO

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Speaker 9: summit this June to keep the US committed to the

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Speaker 9: military alliance. That these talks now are centered on how

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Speaker 9: countries will afford it, what counts as defense spending, and

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Speaker 9: how that target might be enforced. In London, James Wilcock Bloomberg.

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Speaker 4: Radio, the UK Defense Secretary says talks with the European

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Speaker 4: Union about a common defense pactor at the hardest stage.

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Speaker 4: Britain has been putting to join a one hundred and

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Speaker 4: fifty billion euro scheme for re arming Europe. In an

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Speaker 4: exclusive interview, John Healy tel Bloomberg, he hopes for a

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Speaker 4: deal by Monday.

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Speaker 10: The security challenges we've faced in Europe require the UK

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Speaker 10: and the EU to work closer together. We've been willing

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Speaker 10: and ready to do that, and we've said from the

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Speaker 10: outset that We're ready to strike an agreement if the

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Speaker 10: EU will do so too, so I hope we'll see

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Speaker 10: on Monday what the European Union has now offered as

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Speaker 10: a security and defense partnership struck with the UK.

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Speaker 4: The UK Defense Secretary was speaking at the London Stock

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Speaker 4: Exchange or He was rallying investment for defense companies. Britain

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Speaker 4: has committed to increasing defense spending to two and a

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Speaker 4: half percent of GDP by twenty twenty seven and up

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Speaker 4: to three percent in the next decade.

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Speaker 2: Ukraine's President Zelinsky says that he stands by his plan

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Speaker 2: to hold direct talks with his Russian counterpart in Turkey

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Speaker 2: on Thursday. Speaking to reporters in Kief, he said that

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Speaker 2: he expects strong US and European sanctions on Russia's energy

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Speaker 2: and banking sectors. If President Putin fails to show up

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Speaker 2: for the meeting, it's.

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Speaker 1: When that Russia is not ready for diplomacy, no time

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Speaker 1: for playing games on the technical level, and it's win only.

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Speaker 9: One thing that we need to be more strong, unite

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Speaker 9: and tough on them.

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Speaker 2: Vladimir Lensky, speaking there as Bloomberg reported that the US

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Speaker 2: has a sanctions package ready to go should President Trump

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Speaker 2: require it. Meanwhile, Russia's deputy foreign minister said that the

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Speaker 2: Kremlin is ready for serious talks in Istanbul, without confirming

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Speaker 2: whether Putin would attend.

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Speaker 4: The UK's markets watchdog plans to relax rules on how

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Speaker 4: insurers sell policies to large companies. The Financial Conduct Authority

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Speaker 4: says the market could benefit from a simpler, more straightforward

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Speaker 4: system that reduces cost and encourages competition. The proposed changes

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Speaker 4: include reducing review frequencies, giving flexibility and appointing lead insurers,

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Speaker 4: and eliminating duplicative reporting and training requirements. According to Lloyd's

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Speaker 4: of London, the Capital's insurance market is the biggest global

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Speaker 4: hub for commercial and specialty risk sourcing, over ninety one

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Speaker 4: billion dollars in premiums annually.

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Speaker 2: And those are some of our top stories for you

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Speaker 2: this morning. Let's get to the markets. Agent tech stocks

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Speaker 2: gaining head of earningstorm alibarbar and Tencent, China's most valuable company.

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Speaker 2: Chip makers are gaining on plans form Nvidia an AMD

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Speaker 2: to invest in Saudi Arabia artificial intelligence, and in Vidia's

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Speaker 2: shares up eleven point eight percent in two sessions to

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Speaker 2: a ten week high. US benchmarket stock indexes erased their

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Speaker 2: twenty twenty five losses as of yesterday, but Europeans stop

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Speaker 2: futures this morning are in the red, down two tenths

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Speaker 2: of one percent. US everty contracts inching just a little

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Speaker 2: bit higher, treasuries little changed at four forty seven in

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Speaker 2: terms of ten year yields, and the dollar. On Monday,

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Speaker 2: we saw the move in the Bloomberg Dollar Spot Index,

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Speaker 2: the best single day rally since the election of President

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Speaker 2: Trump in November, but the dollar broadly week at this

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Speaker 2: morning down a tenth of one percent. Those are the markets.

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Speaker 3: In a moment.

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Speaker 4: We'll bring you more on Donald Trump's trip to the

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Speaker 4: Middle East, plus why Italy's planned to lower London's wealthy

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Speaker 4: non darms is paying off from Milan.

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Speaker 3: But we also usually have a book review for this

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Speaker 3: sporting I like this look.

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Speaker 2: Bloomberg Pursuits covers everything for you, and they've highlighted a

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Speaker 2: new biography that I just think is fascinating. I've got

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Speaker 2: to read it. Claire mccardal, the designer who set Women Free.

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Speaker 2: Elizabeth Evitts Dickinson, has written this biography, and she's written

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Speaker 2: about the biography for us on Bloomberg, So just to

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Speaker 2: kind of give us a taser if you don't know

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Speaker 2: this name in fashion, she is a totally fascinating woman.

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Speaker 2: She created basically casual women's clothing, the whole of American

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Speaker 2: women's fashion in the nineteen thirties and forties.

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Speaker 4: But the story also was fascinating because of the time

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Speaker 4: period that it traces back, so from pre war where

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Speaker 4: Claire McCardell came up with this idea of making fashion

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Speaker 4: essentially more functional for women, tracing it through the war period,

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Speaker 4: and how she was able to popularize this as America,

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Speaker 4: you know, became more wealthy as there was greater, for example, travel,

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Speaker 4: trying to create clothes that were functional for travel as well.

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Speaker 4: It's such an interesting doctor position with the conversations we're

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Speaker 4: having now about how people are dressing in the workplace,

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Speaker 4: you know, as people came back from the pandemic and

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Speaker 4: had to get back into struggle back into their suits.

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Speaker 3: Not that I'm speaking of press some experience.

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Speaker 2: Yes, look, if you are getting ready in your separates,

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Speaker 2: in your trousers or your skirt, your top and your

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Speaker 2: jacket to get into the office. Well, of course Claire

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Speaker 2: mccardal was the person who created that for women have

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Speaker 2: a read about it. We'll put a link in our

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Speaker 2: show notes to that story.

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Speaker 4: Well, President Trump's trip to the Middle East paved the

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Speaker 4: way for the AI future for Saudi Arabia and the

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Speaker 4: unitedarob Emirates with chip deals for US tech companies Nvidia,

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Speaker 4: AMD and many others joining us. Now for more from

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Speaker 4: riad is Boomberg TV's Horizons Middle Eastern Africa anchor Jamana Barsaccia.

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Speaker 4: So we've had day one of the trip already and

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Speaker 4: a huge neede of artificial intelligence and other deals.

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Speaker 1: So many deals announced. I've got to say I was

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Speaker 1: in the room yesterday when both the Crown Prince muhamm't

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Speaker 1: Binsentman and President Trump were speaking, and the feeling was

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Speaker 1: quite electric. Both certainly know how to play to the crowd,

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Speaker 1: and as we had anticipated, lots of deals, plenty of

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Speaker 1: agreements and MOUs signed between the two countries. At the

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Speaker 1: headline figure that the White House released ahead of that

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Speaker 1: speech was six hundred billion dollars in investment pledges had

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Speaker 1: been agreed to between the both sides, though later on

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Speaker 1: the Crown Prince said that they are looking to increase

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Speaker 1: that number to one trillion dollars. There's some question marks

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Speaker 1: as to how we're going to get there with the

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Speaker 1: state of Saudi finances. But in terms of other deals,

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Speaker 1: three hundred billion dollars worth of commercial agreements were were

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Speaker 1: well agreed to, essentially at this Saudi US business farm

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Speaker 1: that was taking place in parallel to President Trump's meetings yesterday,

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Speaker 1: and some of them include AI. As you mentioned, a

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Speaker 1: massive deal between Nvidia AMD and the Saudi AI investment

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Speaker 1: firm HUMANE which was announced this week, and they're going

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Speaker 1: to be providing some high end chips to power the

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Speaker 1: AI centers in the Middle East and within specifically Saudi Arabia.

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Speaker 1: On this point, but on the back of that, you

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Speaker 1: did see a big rally and makers on that news.

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Speaker 1: It came as a bit of a surprise, especially because

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Speaker 1: it means that the Trump administration is watering down some

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Speaker 1: of those chip export controls. We also had a massive

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Speaker 1: defense deal announcement. The White House said it was the

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Speaker 1: largest in history, one hundred and forty two billion dollars worth,

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Speaker 1: as Saudi Arabia pledging to buy more arms and weapons

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Speaker 1: from the US. We had an MoU and the energy space.

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Speaker 1: We also had an announcement from an aviation leasing company owned

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Speaker 1: by Discumern Weal Funds. They're looking to buy about thirty

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Speaker 1: Boeing seven three seven jets, so plenty on the commercial front,

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Speaker 1: and of course many industry leaders were there as well, including.

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Speaker 2: The likes of Elon Musk Gosh, it must have been

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Speaker 2: fascinating to be in that room and to see it Jumana.

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Speaker 2: But yes, as you say, disagreement about exactly how much

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Speaker 2: money this is really going to equate to. There's also

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Speaker 2: another issue though, that I want to touch on, what

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Speaker 2: is the view in the Gulf nations amongst all of

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Speaker 2: those people that perhaps you were talking to when it

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Speaker 2: comes to the gift of a Katari luxury jet to

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Speaker 2: serve as a new presidential plane.

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Speaker 1: Now, I will tell you almost everyone I've spoken to

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Speaker 1: is slightly frustrated that this news came out because it

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Speaker 1: took a lot of attention away from some of the

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Speaker 1: other big deals that they were planning on announcing this week.

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Speaker 1: I think there's been a lot of controversy about the

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Speaker 1: story that came out over the weekend. It raises a

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Speaker 1: lot of legal and ethical questions as to whether or

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Speaker 1: not the US president can actually accept a gift of

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Speaker 1: this monetary value from a foreign government, and technically under

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Speaker 1: the constitution they're not allowed to accept a gift without

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Speaker 1: congressional approval, so definitely raises some legal questions. President Trump

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Speaker 1: has confirmed that the Kataris have made this jet as

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Speaker 1: a gift offer, but also as one of a temporary nature.

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Speaker 1: The Kataris have said that it's still in discussion phase

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Speaker 1: and if they were to offer it, it would just

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Speaker 1: be a loan as opposed to an outright gift. And

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Speaker 1: then the Trump administration has said that ultimately it would

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Speaker 1: end up being a part of the Presidential Library or

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Speaker 1: gifted to the Defense Ministry. So still all of that

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Speaker 1: is going on in the background. Of course, President Trump

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Speaker 1: will be making his way to Doha later this afternoon

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Speaker 1: and over there expect more deals as well, and perhaps

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Speaker 1: a little bit more focused as well on the regional

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Speaker 1: security front, because today in Riots he's going to be

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Speaker 1: presiding over a GCC leader's summit. Unclear exactly which leaders

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Speaker 1: will be present, but we can expect more headlines today

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Speaker 1: about the geopolitical focus of the Trump administration as opposed

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Speaker 1: to pure deals coming out of riod Okay.

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Speaker 4: Jimini Versacchi House of Boomberg TV's Horizons Middle Eastern Africa.

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Speaker 3: Thank you for joining us from read now.

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Speaker 2: It's only been six weeks since the UK's non dom

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Speaker 2: tax regime ended. It gave wealthy individuals favorable tax treatment

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Speaker 2: for overseas earnings. Now Italy is proving an early winner

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Speaker 2: in the race to attract all those wealthy investors from

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Speaker 2: the UK, and Bloomberg's Ultra a Wealth reporter Benz Supers

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Speaker 2: joins us now to discuss this. You've been reporting on

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Speaker 2: this Good Morning, Ben. The Italians have a name for

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Speaker 2: the plan. I'm not going to attempt it because of

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Speaker 2: my Italian's rubbish and what are they offering people who

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Speaker 2: move there?

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Speaker 3: I'll haven we go, Caroline.

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Speaker 11: It's Fort Londra, which translates into English as Empty London.

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Speaker 3: That's I guess.

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Speaker 11: It's not the official name, but it's certainly known in

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Speaker 11: private wealth circles there, and crucially it's actually almost a

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Speaker 11: copy and paste of what Britain offered to Italy has

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Speaker 11: offered this. It's not brand new, they've offered it since

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Speaker 11: twenty seventeen, but at the time it was very much

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Speaker 11: sort of a deliberate attempt to copy what Britain has

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Speaker 11: offered for more than two centuries, which is tax breaks

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Speaker 11: on local earnings and income, tax breaks on overseas earning

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Speaker 11: and income. And now that's really attractive if you're a

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Speaker 11: global elite earning millions and millions of whatever currents you're

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Speaker 11: earning from a global portfolio, and you can be based

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Speaker 11: in an attractive jurisdiction. So that's the irony here that

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Speaker 11: Italy is actually attracting a lot of individuals based on

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Speaker 11: copying very much what Britain has offered, and England and

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Speaker 11: Britain getting rid of it last month has turbo charged

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Speaker 11: that program for Milan and Italy more broadly.

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Speaker 4: So how well is this working? Who's moving to Milan, Stephen?

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Speaker 11: We've got everyone from former CEOs of EMI Music to

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Speaker 11: billionaire entrepreneurs like the likes of v Nasev Sawiris, Egypt's

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Speaker 11: richest person, a co owner of the Premier League football

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Speaker 11: team aston Villa, and in between that there are members

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Speaker 11: of dynastic fortunes moving as well. So what we're seeing

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Speaker 11: here is a whole spe spectrum of what we would

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Speaker 11: call London's billionaire economy. Me relocating upping sticks from London

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Speaker 11: typically to Milan typically, and you can imagine of course

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Speaker 11: that they're also bringing with them their families. These are

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Speaker 11: all individuals in their typically in their fifties sixties, they're

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Speaker 11: at that stage of life when they've got kids normally,

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Speaker 11: and you can imagine that sort of the ripple effects

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Speaker 11: of this are going to spread across the UK, the

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Speaker 11: fact that they're not here anymore.

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Speaker 2: Yes, so is Milan booming? Then what does it mean

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Speaker 2: for the Italian economy? Maybe overall? It's probably it's not

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Speaker 2: just Milan, as you say, maybe Rome too, But what

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Speaker 2: does it mean for Italy overalls?

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Speaker 11: What's really interesting here is that it's not just the

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Speaker 11: individuals now moving on the back of that. We're seeing there,

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Speaker 11: for example, private members clubs opening up in Milan. We're

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Speaker 11: seeing luxury hotels thinking oh, you know what, maybe we

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Speaker 11: should boost our presence there as well. And some of

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Speaker 11: the top city of London law firms like Charles Russell Speechley,

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Speaker 11: as we report today in our piece Thereso, they've also

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Speaker 11: recently opened up offices there in Milan. So what we're

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Speaker 11: seeing here is the whole ecosystem that London has curated

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Speaker 11: really carefully. I would say, certainly, over the last century

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Speaker 11: we've created that ecosystem, the private wealth ecosystem across Mayfair, Chelsea, Knightsbridge,

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Speaker 11: you name it, and now that whole space is seeing

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Speaker 11: a similar opportunity in Milan. It will be interesting to

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Speaker 11: see how the local population increasingly understands and responds to this.

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Speaker 11: Is it going to increase local housing prices? For example,

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Speaker 11: as the housing market turns red hot that's often been

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Speaker 11: a criticism in London, and non dorms have pushed up

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Speaker 11: housing prices. So I think in some ways this is

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Speaker 11: really good for Milan. But it'll be very interesting to

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Speaker 11: see how this develops as an increasing number of typically

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Speaker 11: previously UK residents end up living in Milano.

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Speaker 4: Yeah, perhaps a boom also for Italian lessons for a

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Speaker 4: lot of these people as well. I mean, where is

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Speaker 4: Milan competing with ben You've reported on this story extensively.

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Speaker 4: Where else are they choosing when it comes to locations

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Speaker 4: outside the UK?

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Speaker 11: Yeah, it all depends on the individual. But yeah, you're right, Stephen.

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Speaker 11: There are some other sort of European wealth hubs within Europe.

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Speaker 3: We've got Greece.

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Speaker 11: They've actually they've actually taken a similar route to Italy

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Speaker 11: and created a similar regime to what the UK has

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Speaker 11: offered for the last two centuries, and another fifteen year regime,

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Speaker 11: another fifty year regime that allows tax breaks on your

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Speaker 11: overseas earnings and income. But more broadly, we've got we've

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Speaker 11: got Monaco, that's sort of I would say that the

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Speaker 11: long the long held tax haven in Europe. That sort

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Speaker 11: of that's that's always been known as that. But more

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Speaker 11: broadly as well, you know, going further than Europe, we've

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Speaker 11: got the Middle East that's really making a concerted effort

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Speaker 11: to court some of the world's rich. That's Abidabi Dubai.

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Speaker 11: So that is why I would say other sort of

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Speaker 11: the main rivals right now. And Switzerland is always sort

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Speaker 11: of known as Switzerland's always in the pack. It isn't,

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Speaker 11: it doesn't almost doesn't. It doesn't have to market itself

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Speaker 11: these days, it's just known as a great global wealththab.

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

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Speaker 3: I'm Stephen Carroll.

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Speaker 4: Break Europe