WEBVTT - 10% US Tariff Proposal, Europe Tech Sovereignty, How To Make $76bn

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Blueberg daybaqre At podcast. Good morning, It's Wednesday,

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<v Speaker 2>the third of June. I'm Caroline Hepka in London.

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<v Speaker 3>And I'm Stephen Caroline Brussels. Coming up today, the US

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<v Speaker 3>proposers new tariffs of at least ten percent on imports

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<v Speaker 3>from the UK, the EU, China, and many others.

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<v Speaker 2>The European Union moves to reclaim its digital sovereignty as

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<v Speaker 2>Palente comes under fire from UK lawmakers.

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<v Speaker 3>The US and around resume strikes. Is The top oil

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<v Speaker 3>executive warns that everyone is asleep at the wheel.

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<v Speaker 2>Plus seeking a fifteen million percent return. How revolutes founder

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<v Speaker 2>used a half million dollar investment to create a company

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<v Speaker 2>that could now net him seventy six billion dollars. Let's

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<v Speaker 2>start with a roundup of our top stories.

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<v Speaker 3>The US is proposing tariffs of at least ten percent

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<v Speaker 3>on imports from most major trade partners following an investigation

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<v Speaker 3>into goods allegedly produced using forced labor. The probes they

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<v Speaker 3>are put one part of the administration's effort to revive

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<v Speaker 3>Trump's tariffs after the Supreme Court ruled that many of

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<v Speaker 3>them were unconstitutional. The ten percent rate would apply to

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<v Speaker 3>imports from the UK, the EU, Canada, Mexico, and Taiwan.

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<v Speaker 3>Products from other major economies, including China, India, Japan, South Korea,

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<v Speaker 3>Brazil and Switzerland would be subject to a twelve and

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<v Speaker 3>a half percent levy. Former US Secretary of State Mike

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<v Speaker 3>Pompeio gave his reaction to the announcement as the news

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<v Speaker 3>broke overnight.

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<v Speaker 4>The President has used tariffs to try and achieve rejectives.

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<v Speaker 4>That's a legitimate use of America's power to tax. Right,

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<v Speaker 4>It's a very reasonable thing when you think other nations

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<v Speaker 4>are not behaving in a way that are consistent with

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<v Speaker 4>the things that matter to your citizens, the people that

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<v Speaker 4>the president was elected to represent. Hopefully you'll set up

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<v Speaker 4>clearly this is the expectation, this is the behavior we're

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<v Speaker 4>trying to achieve. When you do that, you remove the

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<v Speaker 4>tariff and countries go compete.

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<v Speaker 5>But I have no problem with the.

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<v Speaker 4>President that states to making assistant saying now this is

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<v Speaker 4>this is the right thing to do.

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<v Speaker 5>Countries will make their.

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<v Speaker 3>Own choices, America's former chief diplomat Mike Pompeio, speaking to Bloomberg.

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<v Speaker 3>The levies will not take effect immediately under a subject

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<v Speaker 3>to a public comment and review period that begins this week.

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<v Speaker 2>The European Union will today announce plans to boost its

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<v Speaker 2>tech industry and reduce its reliance on America and other suppliers.

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<v Speaker 2>A draft of the plan seen by Bloomberg contains measures

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<v Speaker 2>on chips, cloud computing, and artificial intelligence, including driving construction

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<v Speaker 2>of European data centers. The proposal is an effort to

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<v Speaker 2>challenge US dominance of the sector from major names like

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<v Speaker 2>Amazon Web Services, Microsoft a Zoo, and Google Cloud. Former

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<v Speaker 2>Executive Vice President of the European Commission, Margareta Vestayer has

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<v Speaker 2>told Bloomberg Radio that Europe needs more alternatives.

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<v Speaker 6>I think it's really important to define technological sovereignty as

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<v Speaker 6>a question of control.

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<v Speaker 7>Can you control what is essential to you?

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<v Speaker 6>And of course not all data's equal, but some data

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<v Speaker 6>is more than other data. And I think it's really

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<v Speaker 6>important that data that you really want only to be

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<v Speaker 6>for European jurisdiction, then you make sure that you have

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<v Speaker 6>only European jurisdiction.

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<v Speaker 2>Margaret Avesta there who helped to develop the Used Digital

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<v Speaker 2>rule Book. It comes amid reports that the bloc's twenty

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<v Speaker 2>billion euro investment plan in AI data centers faces a

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<v Speaker 2>number of delays and funding issues sources Heel Bloomberg. The

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<v Speaker 2>EU's efforts to back gigafactories announced last year lack clarity

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<v Speaker 2>about demand and subsidies.

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<v Speaker 3>In the UK, members of Parliament are calling on the

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<v Speaker 3>government to break its contract with Palent, Heer branding it

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<v Speaker 3>an unacceptable point of weakness. US software companies being branded

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<v Speaker 3>a major risk by lawmakers on the Science, Innovation and

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<v Speaker 3>Technology Committee Bloomberg.

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<v Speaker 5>James Wilcock has the story.

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<v Speaker 8>Palente is the number one concern for MPs looking at

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<v Speaker 8>how the public sector manages its data. They note the

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<v Speaker 8>UK government is rely on a tiny number are very

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<v Speaker 8>powerful tech supplieres for its infrastructure, but they single out

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<v Speaker 8>the US software company for its over political positions, which

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<v Speaker 8>they call a clear mismatch with British values. Palente has

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<v Speaker 8>previously defended itself as saying the company operates like all

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<v Speaker 8>other government tech vendors, but the growing political backlash is

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<v Speaker 8>a sign of the changing attitudes towards relying on America

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<v Speaker 8>and its firms in London. James Wilcock Bloomberg Radio.

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<v Speaker 2>The fragile ceasefire in the Middle East faces its latest

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<v Speaker 2>test after US forces intercepted Iranian strikes and hit a

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<v Speaker 2>command center in the Islamic Republic. US Central Command said

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<v Speaker 2>that Iran had launched ballistic missiles and drones towards neighboring countries,

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<v Speaker 2>including Kuwait and Bahrain. His honor and are managing editor

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<v Speaker 2>for the Middle East and Africa.

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<v Speaker 9>The bottom line of what's happening, including those missile attacks

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<v Speaker 9>by Iran and the US response, is that we are

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<v Speaker 9>seeing an editation in the market.

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<v Speaker 10>People are losing.

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<v Speaker 9>Belief that the longer this process takes, the more likely

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<v Speaker 9>it is to see risks seculdly railed whole peace process,

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<v Speaker 9>if we can call it that, and the agitation is

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<v Speaker 9>expressing itself in many ways.

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<v Speaker 2>Bloomberg's Honor and there as the US military is pursuing

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<v Speaker 2>less public ways of protecting vessels in the Strait of

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<v Speaker 2>Homers with a quiet version of Project Freedom. Bloomberg understands

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<v Speaker 2>that some ships are turning off their transponders and sticking

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<v Speaker 2>close to the Omani coast to avoid Iranian minds, with

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<v Speaker 2>the US military assisting if needed.

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<v Speaker 3>Vital's top executive in the Middle East says Europe and

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<v Speaker 3>the US aren't facing up to the growing oil supply crunch.

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<v Speaker 3>Speaking at an SMP Global conference in London, Tom Baker

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<v Speaker 3>accused Western governments of being asleep at the wheel when

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<v Speaker 3>it comes to the crisis. Vital estimates global demand destruction

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<v Speaker 3>at around four million barrels a day, with countries delaying

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<v Speaker 3>purchases and the hope that a resolution to the Iran

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<v Speaker 3>war will bring down prices. Brankr morning's trading just over

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<v Speaker 3>at ninety seven dollars a barrel, up one percent.

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<v Speaker 2>SpaceX is aiming to sell shares at one hundred and

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<v Speaker 2>thirty five dollars a piece for its record breaking seventy

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<v Speaker 2>five billion dollar IPO. According to Reuters, the firm is

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<v Speaker 2>breaking the traditional listing process of announcing a price range

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<v Speaker 2>before marketing the shares and setting the price before trading begins.

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<v Speaker 2>Dan Ives, global head of Technology research at web Bush Securities,

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<v Speaker 2>says investor interest in tech is set to continue.

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<v Speaker 11>It's a tie a way of VIPs that are coming,

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<v Speaker 11>but they're all at the heart of the AI revolution,

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<v Speaker 11>and I think to some extent, when you look where

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<v Speaker 11>we are, we continue believe this AI party start in

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<v Speaker 11>nine pm.

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<v Speaker 5>It's about eleven thirty pm.

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<v Speaker 12>Party goes to four AM turn i'ves from web Bush

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<v Speaker 12>Security speaking there, the deal involving Elon Musk's firm would

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<v Speaker 12>be the largest IPO on record, more than doubling the

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<v Speaker 12>twenty nine point four billion dollars that was raised by

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<v Speaker 12>Saudi Ramco that was back in twenty nineteen.

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<v Speaker 3>Voters in California have been casting ballots on who should

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<v Speaker 3>lead the country's most populous state. Democrat Javier Bersera and

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<v Speaker 3>Republican Steve Hilton took early leads in California's governor primary

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<v Speaker 3>to replace Democratic Governor Gavin Newsom, with about half the

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<v Speaker 3>ballots reported. They each have about twenty six percent of

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<v Speaker 3>the vote, according to decision desk KATEQ. In the Meryal

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<v Speaker 3>race in Los Angeles, early results suggest that a runoff

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<v Speaker 3>between Democratic incumbent Karen Bass and reality TV star Spencer Pratt,

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<v Speaker 3>who was a registered Republican.

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<v Speaker 2>Now Here in the UK, the police response to a

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<v Speaker 2>murder in the UK has sparked outrage across the political

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<v Speaker 2>spectrum and protests outside of police station. Henry Novak was

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<v Speaker 2>handcuffed as he lay dying last December after his killer,

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<v Speaker 2>victim Digwa, falsely accused him of racism. In bodycam footage,

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<v Speaker 2>the eighteen year old can be heard saying I've been stabbed,

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<v Speaker 2>to which an officer replies, I don't think you have. Yesterday,

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<v Speaker 2>the Prime Minister gave his reaction after viewing the footage.

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<v Speaker 10>It's harrowing and I have to say, as a father

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<v Speaker 10>of a seventeen year old boy, I felt sick watching it.

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<v Speaker 2>Kis Palmer says there are serious questions for the police

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<v Speaker 2>to answer, while Reform UK's Nigel Farage says the reaction

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<v Speaker 2>to the murder should be one of pure cold rage.

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<v Speaker 2>Those are our top stories for you this morning. Let's

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<v Speaker 2>look at the markets now. Global equities advancing to new highs,

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<v Speaker 2>the MSCI All Country World Index up a tenth of

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<v Speaker 2>one percent, but demand for AI stocks is really only intensified,

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<v Speaker 2>with the topics breaking above four thousand. China's China Eggs

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<v Speaker 2>and the Staff fifty index both also surging. US, though

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<v Speaker 2>and European stock futures are actually both in the red.

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<v Speaker 2>Usox pitty futures down by just above a tenth of

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<v Speaker 2>one percent. The yenin focus with a speech from Governor

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<v Speaker 2>Awada in Japan. In terms of bond markets, treasury yields

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<v Speaker 2>up one and a half basis points at four forty

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<v Speaker 2>six These as global diesel stockpiles have declined to fresh

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<v Speaker 2>lows and break through futures this morning, currently up one

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<v Speaker 2>point two percent, trading above ninety seven dollars.

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<v Speaker 10>About those are the markets in.

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<v Speaker 3>A moment more only You plans to reduce its reliance

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<v Speaker 3>on American technology, Plus how the founder of Revolute could

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<v Speaker 3>be in line for one of the biggest fortunes in

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<v Speaker 3>the financial industry.

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<v Speaker 5>But another story that caught a right this morning. The

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<v Speaker 5>Bank of England's going wild.

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<v Speaker 3>Perhaps not in the usual sentence we say about the

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<v Speaker 3>center of bank, but they've opened a public vote on

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<v Speaker 3>which wildlife animals they would like to replace historical figures

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<v Speaker 3>on the next series of banknotes. So instead of Winston Churchill,

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<v Speaker 3>the public can choose from a list of eighteen creatures,

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<v Speaker 3>including a barnell, an Atlantic Puffin, a Pine Martin or

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<v Speaker 3>a basking shark. The decision amounts first back in March,

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<v Speaker 3>triggered outcry among some right wing politicians, but it was

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<v Speaker 3>actually making the public said they wanted. There was a

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<v Speaker 3>consultation run by the Bank last year and sixty percent

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<v Speaker 3>of those nominated the theme of wildlife versus only thirty

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<v Speaker 3>eight percent, just so they wanted to continue with noble

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<v Speaker 3>historical figures.

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<v Speaker 2>Yeah, unlike a past a public of votes, the Bank

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<v Speaker 2>of England gets the final say for anyone who remained.

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<v Speaker 5>We have enough to do, you know.

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<v Speaker 2>Yeah, boat boat face was on a public vote that

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<v Speaker 2>caused controversy for the naming of a ship. But anyway, look,

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<v Speaker 2>banknotes have been reduced to symbolism in lots of rays

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<v Speaker 2>because actually so few people use them in real life.

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<v Speaker 2>But you're right, replacing Churchill, Shakespeare, Austin Turing has actually

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<v Speaker 2>been quite controversial for some beyond the kind of politicking.

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<v Speaker 2>I think there is a sort of question mark about,

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<v Speaker 2>you know, replacing nature and of these you know and

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<v Speaker 2>historical figures, about what that kind of symbolizes.

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<v Speaker 10>Are you replacing the drive kind.

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<v Speaker 2>Of industry and discovery with something pastoral that feels I

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<v Speaker 2>don't know, quite different novel and.

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<v Speaker 3>I'm not sure it's something I didn't realize. Parirly wildlife

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<v Speaker 3>also is really helpful for security in banknotes, na the

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<v Speaker 3>way that they can use it. You know, if there'll

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<v Speaker 3>be like a secret message hidden in a puffin's beak

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<v Speaker 3>that perhaps you'll be able to protect your bank note

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<v Speaker 3>from being encounterfit anyway.

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<v Speaker 5>Also, who uses cash?

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<v Speaker 3>So I think it's the question of how many of

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<v Speaker 3>these banknotes they'll actually be producing they eventually get made anyway.

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<v Speaker 5>It's the subject to provoked lots.

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<v Speaker 3>Of debate among our team this morning, but you'll find

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<v Speaker 3>a link to the story in our podcast show Notes. Well,

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<v Speaker 3>let's turn back to one of our top stories this morning.

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<v Speaker 3>The European Union will today announce the plan which aims

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<v Speaker 3>to boost its technology industry. The so called Tech Sovereignty

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<v Speaker 3>Package is an effort to confront US dominance in the sector,

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<v Speaker 3>and our eutech reporter Jhan Valpaicelli is with us in

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<v Speaker 3>studio for more this morning. First of all, what do

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<v Speaker 3>we know about what's in this package?

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<v Speaker 13>Well Son, The announcement is coming this afternoon, but we

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<v Speaker 13>already know that the packages is going to contain four

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<v Speaker 13>main pillars. The first one is going to be about

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<v Speaker 13>Cloud and the I, the so called Cloud and the

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<v Speaker 13>I Development Act KADA. The second is going to be

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<v Speaker 13>a Chips Act. That's a second Chips Act. There was

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<v Speaker 13>a Chips Act already in twenty twenty three. The third

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<v Speaker 13>document is going to be about open source, essentially encouraging

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<v Speaker 13>the take up of open source software in the year

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<v Speaker 13>and the fort is going to be about energy and THEI,

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<v Speaker 13>both in terms of sustainability of AI data centers and

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<v Speaker 13>in terms of using AI to make the most sustainable

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<v Speaker 13>How feasible.

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<v Speaker 2>Though, do you think it is to actually try to

0:12:36.880 --> 0:12:39.720
<v Speaker 2>reduce your stupendency on American tech?

0:12:39.920 --> 0:12:43.920
<v Speaker 13>Well, that's the main question about the entire endeavor, I

0:12:43.920 --> 0:12:47.120
<v Speaker 13>guess right. If you look at the cloud computing market,

0:12:47.240 --> 0:12:51.120
<v Speaker 13>for instance, there's a study by the European Parliament, another

0:12:51.160 --> 0:12:56.760
<v Speaker 13>institution in Brussels, which has realized that seventy percent of

0:12:58.160 --> 0:13:01.840
<v Speaker 13>europe persential the European cloud market is dominated by the

0:13:02.080 --> 0:13:06.120
<v Speaker 13>big three US cloud companies, so the feed is very

0:13:06.200 --> 0:13:10.200
<v Speaker 13>large when it comes to cloud. Very similar problem with Chips.

0:13:10.280 --> 0:13:13.320
<v Speaker 13>The U in twenty twenty twenty twenty three when the

0:13:13.720 --> 0:13:18.120
<v Speaker 13>first Chips actors passed was helping to double its production

0:13:19.040 --> 0:13:23.640
<v Speaker 13>or worldwide production of semiconductors from ten percent to twenty

0:13:23.640 --> 0:13:27.719
<v Speaker 13>percent by twenty thirty. That target seems very very unfeasible

0:13:27.800 --> 0:13:31.640
<v Speaker 13>right now, it's kind of been abandoned. So how is

0:13:31.679 --> 0:13:33.960
<v Speaker 13>it going to be? I think it's going to be easy.

0:13:34.080 --> 0:13:38.400
<v Speaker 13>I suppose that no one is really dreaming of replacing

0:13:38.440 --> 0:13:42.439
<v Speaker 13>the US completely. It's more about having at least a

0:13:42.640 --> 0:13:45.959
<v Speaker 13>slice of the market that might be sheltered in case

0:13:46.040 --> 0:13:50.000
<v Speaker 13>of very serious geopolitical tensions trade disruptions.

0:13:50.080 --> 0:13:51.760
<v Speaker 5>So it's really about.

0:13:53.280 --> 0:13:57.559
<v Speaker 13>Edging more, having more of it, than replacing it completely.

0:13:58.040 --> 0:14:00.600
<v Speaker 3>An illustration of the difficulty in this as well as

0:14:00.640 --> 0:14:03.560
<v Speaker 3>in your latest reporting to on the euse efforts to

0:14:03.600 --> 0:14:05.400
<v Speaker 3>invest in AI data centers.

0:14:05.440 --> 0:14:07.960
<v Speaker 5>That's run into trouble too. What's gone wrong there? That's

0:14:07.960 --> 0:14:08.480
<v Speaker 5>a bil.

0:14:09.080 --> 0:14:12.880
<v Speaker 13>Less tragic than it sounds. It's most about the U

0:14:13.120 --> 0:14:17.360
<v Speaker 13>promising too much too late, meaning that it unveiled this

0:14:17.520 --> 0:14:23.160
<v Speaker 13>project to create five to even ten now so called

0:14:23.400 --> 0:14:27.640
<v Speaker 13>giga factories AI giga factories, which is essentially data centers

0:14:27.640 --> 0:14:34.280
<v Speaker 13>with advanced American AI chips to train AI models, design,

0:14:34.440 --> 0:14:40.320
<v Speaker 13>developed and operating in the EU. That plan was unbuilt

0:14:40.400 --> 0:14:45.080
<v Speaker 13>I think late last year. But the U is getting

0:14:45.520 --> 0:14:48.160
<v Speaker 13>close to the end or its current budget cycle, so

0:14:48.200 --> 0:14:51.960
<v Speaker 13>the funding that was announced is actually not fully available

0:14:52.040 --> 0:14:54.880
<v Speaker 13>right now. Only a few of these giga factories could

0:14:54.920 --> 0:14:57.840
<v Speaker 13>be funded with the current budget, so the delays are

0:14:57.880 --> 0:15:00.240
<v Speaker 13>mostly due to the fact that the next budget one

0:15:00.240 --> 0:15:02.400
<v Speaker 13>that we will span from twenty twenty eight to twenty

0:15:02.560 --> 0:15:06.480
<v Speaker 13>thirty four is still in the negotiation. So yeah, delays

0:15:06.480 --> 0:15:10.720
<v Speaker 13>are not natural in that department. Of course, maybe there's

0:15:10.760 --> 0:15:12.960
<v Speaker 13>a pr failure there because a lot of the companies

0:15:13.040 --> 0:15:17.080
<v Speaker 13>were preparing, really raring to go already and that's not

0:15:17.240 --> 0:15:20.520
<v Speaker 13>the case for a bit. But we expect an announcement

0:15:20.600 --> 0:15:23.720
<v Speaker 13>a call for official bits to be opened in July.

0:15:23.880 --> 0:15:26.080
<v Speaker 3>So okay, John, thank you very much for joining us.

0:15:26.120 --> 0:15:28.760
<v Speaker 3>John Varpatality, there are EU Tech Reporter in the Brussels

0:15:28.760 --> 0:15:32.040
<v Speaker 3>studio this morning. Stay with us. More from Bloomberg Daybreak

0:15:32.040 --> 0:15:33.640
<v Speaker 3>Europe coming up after this.

0:15:35.600 --> 0:15:40.680
<v Speaker 2>Well founded by Nikolai Stronsky in twenty fifteen, Revolute is

0:15:40.720 --> 0:15:44.080
<v Speaker 2>aiming for a near two hundred billion dollar initial public

0:15:44.160 --> 0:15:49.320
<v Speaker 2>offering within the next two years. From startup to fintech juggernauts.

0:15:49.360 --> 0:15:52.800
<v Speaker 2>In today's Bloomberg Big Take, Aisha Ghani has done a

0:15:52.840 --> 0:15:55.600
<v Speaker 2>deep dive into the business and she joins us now.

0:15:55.920 --> 0:16:01.000
<v Speaker 2>Nick Schronsky, he is massively ambitious, He's been huge successful.

0:16:01.520 --> 0:16:02.800
<v Speaker 10>How close is he.

0:16:03.160 --> 0:16:06.560
<v Speaker 2>To building, as he puts it, the first global bank?

0:16:06.960 --> 0:16:07.800
<v Speaker 7>Yes, that's right.

0:16:08.200 --> 0:16:13.240
<v Speaker 1>Revelue already has seventy five million customers around the world,

0:16:13.720 --> 0:16:17.760
<v Speaker 1>from the UK to Mexico. They're already picking up bank

0:16:17.840 --> 0:16:23.040
<v Speaker 1>licenses around the globe. However, there is a huge, huge,

0:16:23.200 --> 0:16:28.720
<v Speaker 1>untapped market still for Storronsky to access and they have

0:16:28.760 --> 0:16:32.840
<v Speaker 1>a way to go, and their peal of Revolute is

0:16:32.960 --> 0:16:36.800
<v Speaker 1>the Stronsky factor. He is hugely ambitious. They want to

0:16:36.840 --> 0:16:40.720
<v Speaker 1>get to one hundred million customers. They recently said they

0:16:41.080 --> 0:16:45.240
<v Speaker 1>hope to achieve that by this time next year, so

0:16:46.040 --> 0:16:49.760
<v Speaker 1>there's a long way to go. However, they're already disrupting

0:16:49.800 --> 0:16:52.800
<v Speaker 1>the banking space, and I think that's a huge part

0:16:52.840 --> 0:16:53.680
<v Speaker 1>of this story.

0:16:54.000 --> 0:16:55.480
<v Speaker 7>As they go around.

0:16:55.200 --> 0:16:58.840
<v Speaker 1>The world and as they pick up these licenses, they're

0:16:58.960 --> 0:17:04.040
<v Speaker 1>arriving with their product, whether it's their FX product to

0:17:04.520 --> 0:17:05.639
<v Speaker 1>their business banking.

0:17:06.160 --> 0:17:08.920
<v Speaker 3>So how much does he stand to make them from

0:17:08.960 --> 0:17:10.600
<v Speaker 3>an IPO part of.

0:17:10.560 --> 0:17:15.679
<v Speaker 1>This ambition is that Staunsky's own wealth is tied to

0:17:15.760 --> 0:17:19.400
<v Speaker 1>the success of this company that he's built. He had

0:17:19.440 --> 0:17:24.080
<v Speaker 1>initially put in half a million of his own funds

0:17:24.400 --> 0:17:25.840
<v Speaker 1>when you started up the company.

0:17:26.320 --> 0:17:27.640
<v Speaker 7>The company is now worth.

0:17:27.440 --> 0:17:31.960
<v Speaker 1>Seventy five billion, and we have found that that puts

0:17:32.040 --> 0:17:36.159
<v Speaker 1>him at twenty point four billion dollars in terms of

0:17:36.200 --> 0:17:40.760
<v Speaker 1>his own wealth, which makes him the UK's richest man. Now,

0:17:40.840 --> 0:17:45.359
<v Speaker 1>when it comes to IPO, he has revealed that he's

0:17:45.640 --> 0:17:50.640
<v Speaker 1>eyeing a listing within two years. And according to internal

0:17:50.720 --> 0:17:55.160
<v Speaker 1>documents that I've obtained, we see that his incentives and

0:17:55.200 --> 0:18:00.120
<v Speaker 1>his compensation increases with revolutes valuation and according to this

0:18:00.200 --> 0:18:04.359
<v Speaker 1>document that ends at just under two hundred billion, and

0:18:04.400 --> 0:18:08.159
<v Speaker 1>at two hundred billion valuation and revolue, he could be

0:18:08.200 --> 0:18:11.320
<v Speaker 1>worth seventy six billion dollars.

0:18:11.119 --> 0:18:12.679
<v Speaker 7>Which is absolutely huge.

0:18:12.920 --> 0:18:16.720
<v Speaker 1>And we're talking about a wealth that exceeds Ken Griffin

0:18:17.000 --> 0:18:18.080
<v Speaker 1>or Steve Schwartzman.

0:18:19.080 --> 0:18:22.639
<v Speaker 2>Yeah, which is extraordinary, isn't it. There are some hurdles though,

0:18:22.680 --> 0:18:24.640
<v Speaker 2>and you've highlighted them in your reporting.

0:18:24.720 --> 0:18:26.000
<v Speaker 10>Some hurdles for Revolute.

0:18:26.359 --> 0:18:29.000
<v Speaker 2>I mean, it's aiming for one hundred million customers in

0:18:29.040 --> 0:18:34.399
<v Speaker 2>one hundred countries and this lofty valuation. You know, there

0:18:34.720 --> 0:18:37.600
<v Speaker 2>are plenty of issues though for this app to deal with.

0:18:38.359 --> 0:18:41.080
<v Speaker 1>Yeah, of course, and just tink it quickly back to

0:18:41.119 --> 0:18:41.840
<v Speaker 1>the IPO.

0:18:41.920 --> 0:18:45.240
<v Speaker 7>I mean, Stornsky has said that part of the reason.

0:18:44.960 --> 0:18:48.760
<v Speaker 1>Why he wants to go public is for gaining that trust.

0:18:49.080 --> 0:18:50.600
<v Speaker 1>You know, you have a lot of trust as a

0:18:50.600 --> 0:18:54.840
<v Speaker 1>public company, So as a company gets bigger, it also

0:18:54.960 --> 0:18:57.639
<v Speaker 1>means that you get a lot more scrutiny from watchdogs

0:18:57.680 --> 0:19:01.520
<v Speaker 1>around the world. You have to continuously pre to regulators

0:19:01.920 --> 0:19:03.440
<v Speaker 1>around your governance structure.

0:19:04.080 --> 0:19:06.960
<v Speaker 7>It means that the very nimble digital.

0:19:06.720 --> 0:19:10.040
<v Speaker 1>Lending company will have to handle the red tape that

0:19:10.560 --> 0:19:14.000
<v Speaker 1>banks have to deal with day in, day out, and

0:19:14.080 --> 0:19:16.679
<v Speaker 1>so that's a challenge to the kind of model that

0:19:16.720 --> 0:19:19.600
<v Speaker 1>investors are so used to seeing. As we delve into

0:19:19.640 --> 0:19:23.040
<v Speaker 1>the financial accounts of Revolute right now, they look like

0:19:23.080 --> 0:19:24.920
<v Speaker 1>a very conservative payments firm.

0:19:25.480 --> 0:19:29.480
<v Speaker 7>They make most of their money from fees, and so we.

0:19:29.400 --> 0:19:32.120
<v Speaker 1>Ask the question what that will look like as they

0:19:32.160 --> 0:19:34.800
<v Speaker 1>add more lending to their books, and they have to

0:19:34.880 --> 0:19:37.199
<v Speaker 1>also keep up with their profit margins, which have been

0:19:37.240 --> 0:19:40.200
<v Speaker 1>absolutely staggering. So those are some of the risks that

0:19:40.359 --> 0:19:43.119
<v Speaker 1>we outline in this story. I'm here in Amsterdam for

0:19:43.200 --> 0:19:45.280
<v Speaker 1>Money twenty twenty, where a lot of the execs will

0:19:45.280 --> 0:19:48.560
<v Speaker 1>be speaking on stage, and there's a lot of buzz

0:19:48.760 --> 0:19:52.800
<v Speaker 1>around this firm, especially when you look at the sector

0:19:52.840 --> 0:19:56.760
<v Speaker 1>as a whole. So they've got these huge ambitions. For

0:19:57.040 --> 0:19:59.600
<v Speaker 1>so far they've been checking off and they've been investing

0:19:59.600 --> 0:20:03.440
<v Speaker 1>in these locations as well. Just this week revenue, announce

0:20:03.600 --> 0:20:08.040
<v Speaker 1>additional investment into France. Much is the delight of Macron

0:20:08.240 --> 0:20:11.440
<v Speaker 1>even with the ukend banking license. It took over five

0:20:11.520 --> 0:20:15.200
<v Speaker 1>years to achieve that, so we'll see what happened.

0:20:17.520 --> 0:20:19.920
<v Speaker 5>Thanks for listening to Bloomberg Daybreak Europe.

0:20:20.040 --> 0:20:22.600
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0:20:22.640 --> 0:20:24.840
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