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

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Speaker 2: This is the Blueberg DBAQ podcast. Good morning, It's Thursday,

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Speaker 2: the nineteenth of February. I'm Caroline Hipket in London and.

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Speaker 1: I'm Stephen Carroll and Brussels coming up today. New meeting

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Speaker 1: minutes show Federal Reserve policymakers wary of cutting interest rates,

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Speaker 1: setting the stage for further clashes with the White House.

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Speaker 2: Social media jalans are coming under increasing pressure in Europe,

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Speaker 2: as Mark Zuckerberg defends Meta's teen policies in a California

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Speaker 2: court case.

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Speaker 1: Plus why layoffs at Novo Nordisk are sparking fears among

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Speaker 1: the wider workforce in Denmark.

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Speaker 3: Let's start with a roundup of our top stories.

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Speaker 1: Federal Reserve officials have shown surprising caution about cutting interest rates,

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Speaker 1: which could widen the Central Bank's rift with the White House.

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Speaker 1: Minutes from January's meeting show policymakers see the US labor

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Speaker 1: market stabilizing, but inflation still stubbornly high. That puts central

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Speaker 1: bankers at odds with President Trump, who has repeatedly said

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Speaker 1: he wants the next Fed chief to deliver sharply lower

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Speaker 1: interest rates. Morgan Stanley's chief US Equities trastist and CIO

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Speaker 1: Mike Wilson says, ultimately, the FED will cooperate with the

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Speaker 1: Treasury with.

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Speaker 4: Respect to the FED independence. I mean, I've probably had

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Speaker 4: a bit different view here. I mean, as far as

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Speaker 4: I can tell. I mean, the FED independence has been

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Speaker 4: sort of fading for the better part of twenty years

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Speaker 4: really since the financial crisis. And when I say independent,

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Speaker 4: I don't mean they're under the thumb of the White House, right,

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Speaker 4: I mean is that they have to play ball in

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Speaker 4: terms of their role to help the government fund itself.

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Speaker 1: As Morgan Stani's Mike Wilson there. Meanwhile, the New York

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Speaker 1: FED came under attack from the White House's National Economic

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Speaker 1: Council Director Kevin Hassett for publishing a study showing US

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Speaker 1: companies and consumers were bearing the vast majority of the

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Speaker 1: cost of tariffs.

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Speaker 2: Open AI is close to finalizing the first phase of

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Speaker 2: a new funding round expected to bring in more than

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Speaker 2: one hundred billion dollars. Bloomberg understands that the record breaking

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Speaker 2: deal would give the startup additional capital to develop its

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Speaker 2: artificial intelligence tools. Bradsmith is Vice chair and president of Microsoft,

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Speaker 2: a key OpenAI partner. He says that the chat GPT

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Speaker 2: maker is branching out.

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Speaker 5: It's not as exclusive as it was, say a few

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Speaker 5: years ago. OpenAI uses our compute, they train models in

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Speaker 5: our data centers, but they work with other companies as well.

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Speaker 5: We critically rely on open AI's frontier models. They are

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Speaker 5: among the best, and many days they are the best

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Speaker 5: in the world.

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Speaker 3: But we have a relationship with.

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Speaker 2: Anthropic Microsoft's Brad Smith. They're speaking to Bloomberg. The first

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Speaker 2: portion of the funding ground would largely come from strategic investors,

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Speaker 2: including Amazon, SoftBank, and Nvidia, as well as Microsoft. Sourceys

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Speaker 2: tell Bloomberg that the next phase of the deal, which

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Speaker 2: will include venture capital firms and other investors, may bring

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Speaker 2: the total fundraising for open Ai substantially higher.

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Speaker 1: Metas CEO Mark Zuckerberg says Instagram's age limits are hard

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Speaker 1: to police and downplayed how much teenage users drive traffic.

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Speaker 1: The world's fifth richest person told the court in Los

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Speaker 1: Angeles the company had gotten to the right place on

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Speaker 1: the issue of young people facing social media addiction. Tech

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Speaker 1: companies are facing a global backlash stemming from the impact

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Speaker 1: of their platforms and how they're policed. French President Emmanuel

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Speaker 1: Macron criticize the tech giants' claims that they're defending free speech.

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Speaker 6: Having just no clue about how the algorism is made,

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Speaker 6: how it is tested, how it is trained, and where

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Speaker 6: it would guide you, I mean democratic. The democratic consequences

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Speaker 6: of this bias could be huge. Some of them claim

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Speaker 6: to be favle of free speech. Okay, we aren't favule

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Speaker 6: of free algorithm.

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Speaker 1: Macron's forceful credit as been echoed by other countries, including Australia,

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Speaker 1: India and the UK, but action against these mostly American

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Speaker 1: companies may put countries on a collision course with the

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Speaker 1: White House, which has lashed out at attempts to regulate

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Speaker 1: US tech giants.

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Speaker 2: Oil has studied, after recording its biggest daily jump since October,

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Speaker 2: has concerns of a military action against Iran grow. The

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Speaker 2: moves come after a report from Axios that American military

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Speaker 2: intervention could come sooner than expected. It quoted unnamed sources

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Speaker 2: saying that a US operation would likely be a week's

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Speaker 2: long campaign. US Representative Rajah Krishna Morti says he's worried

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Speaker 2: about the situation escalating further.

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Speaker 7: I'm concerned that we're going to potentially end up in

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Speaker 7: another war in the Middle East. We don't want that.

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Speaker 7: The American people don't want that, and that's something that

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Speaker 7: comes out loud and clear. All that being said, Iran

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Speaker 7: should not have a nuclear weapon. It cannot have a

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Speaker 7: nuclear weapon. And I'm glad that there's negotiations also with

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Speaker 7: regard to ending their ballistic missile program. But let's do

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Speaker 7: it diplomatically.

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Speaker 2: Illinois Representative Raja Chrisnamurti. They're voicing his frustration with US

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Speaker 2: President Trump's foreign policy bent held above seventy dollars a

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Speaker 2: bowl after adding four point three percent yesterday, with Sex's

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Speaker 2: intermediate trading above sixty five dollars a bowel. Talks between

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Speaker 2: the US and Iran in Switzerland have so far been inconclusive,

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Speaker 2: with the US official saying that Iranian negotiators would return

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Speaker 2: to Geneva with a new proposal in two weeks.

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Speaker 1: Airbos says the lack of reliable engine supplies for its

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Speaker 1: best selling A three twenty jets as holding back aircraft

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Speaker 1: deliveries and its results. The company says it plans to

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Speaker 1: deliver around eight hundred and seventy jets to customers this year,

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Speaker 1: lower than estimates. With a monthly production of A three twenties,

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Speaker 1: reaching seventy to seventy five by the end of next year.

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Speaker 1: Airbos has suffered from what CEO Gionfori called a significant

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Speaker 1: shortage of engine provided by Pratt and Whitney, extending the

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Speaker 1: planemaker's struggles to meet record demand for its best selling model.

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Speaker 2: US President Donald Trump has said that the UK is

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Speaker 2: making a big mistake with its deal to hand over

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Speaker 2: control of the chag Ors Islands to Mauritius. In a

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Speaker 2: social media post, the President described the agreement as a

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Speaker 2: quote blight on our great ally his White House.

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Speaker 3: Per sected Caroline Levitt, the.

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Speaker 8: Post should be taken as the policy of the Trump administration.

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Speaker 8: It's coming straight from the horse's mouth. When you see

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Speaker 8: it on truth social you know it's directly from President Trump.

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Speaker 8: That's the beauty of this president in his transparency.

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Speaker 3: Caroline Levitt.

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Speaker 2: There after, President Trump had just weeks ago described the

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Speaker 2: deal as the best arrangement that Kirs Starmer could make.

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Speaker 2: Earlier this week, the US State Department had issued a

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Speaker 2: statement which supported the deal. In response to President Trump's post,

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Speaker 2: the UK Foreign Office said the agreement we have reached

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Speaker 2: is the only way to guarantee the long term future

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Speaker 2: of this vital military base. And those are our top

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Speaker 2: stories for you this morning. So thinking about the markets

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Speaker 2: this hour, the COSBI in Asia surging up by three

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Speaker 2: point one percent this morning, Samsung hitting a fresh record high.

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Speaker 2: Strong AI chip pricing was the thing that propelled Samsung

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Speaker 2: high stop futures, though for Europe are currently in the red.

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Speaker 2: Brenfrud futures on the worries around a clash between the

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Speaker 2: US and Iran seventy dollars forty six, with Brenfreud futures

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Speaker 2: up a tenth of one percent. The dollar is still

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Speaker 2: firm after those Fed minutes showed a surprisingly hawkish turn,

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Speaker 2: and tenure treasury yields this our four spot zero nights

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Speaker 2: are up a basis point. There.

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Speaker 3: Those are the markets in.

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Speaker 1: A moment our, Donald Trump's hopes for interest rate cuts

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Speaker 1: in trouble, plus why people in Denmark are getting worried

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Speaker 1: about the jobs market.

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Speaker 2: There.

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Speaker 1: But another story that Kajurai this morning is the traders

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Speaker 1: sparking a revival for Murder Mystery Holidays. So the popularity

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Speaker 1: of that series, along with the likes of the Knives

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Speaker 1: Out films and the White Lotus is creating a new

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Speaker 1: fan base for real life trips where people get to

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Speaker 1: act out their own who done it. Lauren Meschling has

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Speaker 1: been writing about this and the luxury twist on this

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Speaker 1: trend as well. There are weekends hosted by Neil Patrick

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Speaker 1: Harris in the US for high spending credit card customers.

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Speaker 1: For some, it's a new twist on escape games, but

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Speaker 1: it also speaks to other trends social events without alcohol

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Speaker 1: being obligatory, or a desire from twenty somethings to spend

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Speaker 1: more money on experiences. This is something that's not just

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Speaker 1: happening in the us Burg Island Hotel and Devon. Agatha

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Speaker 1: Christie was a regular visitor there. They have eleven murder

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Speaker 1: mystery weekends on their calendar this year. It's also a

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Speaker 1: trend in China known as dubensha or script murder.

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Speaker 3: It sounds like a lot of fun.

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Speaker 2: To be honest, Yeah, I really like that. Burr Island,

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Speaker 2: especially Devon sounds wonderful, long drive but good fun. I

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Speaker 2: wonder though, if I could be cheeky and say maybe

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Speaker 2: I prefer to go to a party with real people

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Speaker 2: who are actually characters.

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Speaker 3: But hey, ho.

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Speaker 1: Is this a fantasy dinner party conversation you're having instead

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Speaker 1: it is.

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Speaker 2: Yeah, but look, I mean maybe just acting it out

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Speaker 2: is also really good. It also does feel like an

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Speaker 2: extension of immersive theater to my mind, a bit like

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Speaker 2: sleep No More something like that. But then yeah, you

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Speaker 2: have to kind of it's like DIY act out the

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Speaker 2: event yourself.

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Speaker 1: Yeah, I have to said, they sound like a lot

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Speaker 1: of fun. One of the pieces that are one of

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Speaker 1: the weekends that Lauren reports on, and this says that

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Speaker 1: my boyfriend was not very good at guessing or forming

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Speaker 1: an opinion, but I teamed up with an eleven year

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Speaker 1: old who got it right, which I think speaks to

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Speaker 1: the cross generational appeal of these sorts of events. Well,

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Speaker 1: no need for a murder mystery at least yet. Anyway,

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Speaker 1: when it comes to the next steps for the Federal Reserve,

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Speaker 1: we have the minutes of the latest meeting to delve into,

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Speaker 1: showing a potential challenge that it presents for the next

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Speaker 1: FED chair are very undetective. Our executive edger for Asian Markets,

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Speaker 1: Paul Dobson, is with us for more on this go

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Speaker 1: on then, Paul, who done it? Who has said that

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Speaker 1: they should be thinking about potentially even raising interest rates

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Speaker 1: rather than cutting them.

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Speaker 9: Yeah, morning morning, Stephen. Well, I'm sure that Donald Trump

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Speaker 9: will identify those characters as potential traitors if they do

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Speaker 9: indeed get their way at some point in the future.

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Speaker 9: I think it's really interesting. So the Fed minutes showing

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Speaker 9: that some of the FOMC even floated the idea that

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Speaker 9: should inflation remain as sticky as it has been recently,

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Speaker 9: that the next move that they might need to be

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Speaker 9: would be to raise interest rates. Some of course, we

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Speaker 9: know also the idea that interest rates should be much lower,

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Speaker 9: and when it came to the vote of the last

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Speaker 9: FMC meeting, there were two votes for a cut and

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Speaker 9: no votes for a hike. So it's sort of you know,

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Speaker 9: it speaks to the idea of this split in the

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Speaker 9: FOMC that's going to make it extremely challenging for the

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Speaker 9: new FED chair Wash assuming that he's approved to steer

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Speaker 9: that committee to do further interest rate cuts this year.

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Speaker 9: The market reaction so far, I think was quite unflapped.

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Speaker 9: Though we didn't see a great deal of movement in

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Speaker 9: the Treasury's market or an intro stroke. Expectations were still

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Speaker 9: pricing in around about two and a bit cuts for

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Speaker 9: this year. The two year yield did rise, but it

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Speaker 9: was very close to the bottom of this year's range

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Speaker 9: until the last couple of days, So something to keep

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Speaker 9: in the back of your mind. I think that the

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Speaker 9: debate around what the Fed does do is going to

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Speaker 9: be something that would be very careful the watch this year.

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Speaker 2: Yeah, absolutely, policymakers did seem to be a little more

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Speaker 2: concerned maybe about inflation stickiness rather than the jobs picture

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Speaker 2: in the US. There was also something else that was interesting,

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Speaker 2: though yesterday it wasn't just the FMC minutes. It was

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Speaker 2: also this idea that foreign buyers have actually increased their

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Speaker 2: holdings of US assets and that maybe this sell America

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Speaker 2: trade was more talk than reality.

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Speaker 3: It's true.

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Speaker 9: So looking at the TICK data for the entirety of

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Speaker 9: last year, which talks about the flows into and out

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Speaker 9: of US markets, it shows that there was still a

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Speaker 9: large flow into the US overall one point six trillion dollars.

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Speaker 9: I think are there about spit about sixty to forty

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Speaker 9: between equities and bonds. So what you can conclude from

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Speaker 9: that is definitely that there's no wholesale flight away from

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Speaker 9: the US markets. But I do think that that requires

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Speaker 9: a little bit of qualification as well, because this idea

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Speaker 9: that we're in this era of the end of US

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Speaker 9: exceptionalism doesn't have to mean that people turn their back

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Speaker 9: completely on US markets. It just suggests the idea that

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Speaker 9: maybe more of those flows will go into other parts

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Speaker 9: of the world. I think that's what we're seeing, and

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Speaker 9: you can see it reflects it in two things, not

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Speaker 9: just the weakening of the US dollar relative to currencies

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Speaker 9: all around the world, but also the underperformance of US markets,

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Speaker 9: particularly equities, if you think about it over the period

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Speaker 9: of the entire US presidency. Now, if you look at

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Speaker 9: an MSCI World Index x US and compare it with

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Speaker 9: the one that includes the US, the one that includes

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Speaker 9: the US is now trading by more than ten percentage points.

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Speaker 9: So it shows that they're out before Warmans as people

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Speaker 9: lived to the rest of the world for greater, great

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Speaker 9: and higher returns.

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Speaker 1: Okay, Paul, thanks so much for joining us, our executive

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Speaker 1: editor for Asian Markets, Pull dubs and there stay with us.

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Speaker 1: More from Bloomberg Daybreak Europe coming up after this.

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Speaker 3: Now.

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Speaker 2: Denmark's economy looks strong on paper, with solid growth and

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Speaker 2: employment at a record high, but mass layoffs at Nova,

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Speaker 2: Nordisk and other companies have forced Danes to reckon with

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Speaker 2: the threat of more cuts to come. Our Copenhagen reporter

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Speaker 2: son of vas joins us this morning for more on

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Speaker 2: this sauna. How significant, then, have these layoffs been.

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Speaker 10: It was fairly significant move when Normal last year announced

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Speaker 10: that it would cut five thousand jobs in Denmark alone.

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Speaker 10: Normal Artist is Denmark's crown ju'll at Denmark is a

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Speaker 10: small country, it's a small labor market, and this was

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Speaker 10: one of the biggest corporate cutbacks in the country's history. Now,

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Speaker 10: economists haven't been so worried so far. They say that

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Speaker 10: in isolation these job cuts can be absorbed by Denmark's

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Speaker 10: strong labor market. The problem is that for the Danish economy,

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Speaker 10: and especially also for those individuals that are affected, is

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Speaker 10: that these job cuts aren't happening in isolation.

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Speaker 3: It seems.

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Speaker 10: In fact, Normal appears to be just beginning of a

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Speaker 10: wave of layoffs amongst Denmark's biggest companies that are now

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Speaker 10: undergoing large cuts too. So just earlier this month MRSK

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Speaker 10: announced a big layoff round Usted and several other big names,

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Speaker 10: and it's of course raising the question could these set

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Speaker 10: off a chain reaction where these corporate cutbacks they ripple

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Speaker 10: through the broader labor market and in a worst case

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Speaker 10: scenario could lead to rising and employment and a possible downturn.

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Speaker 1: The headline economics figures in Denmark are still strong, though,

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Speaker 1: so where are we seeing signs of these concerns? And

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Speaker 1: I suppose what does it tell us about Denmark's reliance

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Speaker 1: on those big companies like Nova Noord.

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Speaker 10: Yeah, I mean the normals troubles they have really made

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Speaker 10: an already pessimistic Danish consumer more pessimistic. The consumer confidence

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Speaker 10: in the cator here has been negative for a long time, but.

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Speaker 3: It hit a two year low last year.

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Speaker 10: And economists they talk about the normal effect and layoffs

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Speaker 10: and a massive share price declined last year. It really

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Speaker 10: impacted consumer mood and so there is as you also mentioned,

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Speaker 10: headline economic figures are still strong.

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Speaker 6: So there is this.

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Speaker 10: Huge disconnect between how the economy is performing and how

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Speaker 10: people think that the economy is performing because of especially

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Speaker 10: when they see these big companies carry out big layoff rounds.

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Speaker 10: And the problem is for the economy is that people

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Speaker 10: they save up most of the money because they're worried

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Speaker 10: and the government is trying hard to get people to

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Speaker 10: spend more, like giving tax breaks and other measures, but

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Speaker 10: it just risks that those won't have any effect because

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Speaker 10: people are too worried to spend their money.

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Speaker 3: And it's a problem for the economy.

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Speaker 10: But it could also be a problem, a political problem

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Speaker 10: because Denmark is in an election year and if people

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Speaker 10: believe that the economy isn't doing well, that could impact

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Speaker 10: how people vote. It often costs the government vote support,

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Speaker 10: so the timing of easilayoffs they're really politically sensitive.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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