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

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Speaker 2: This is the BlueBag Day, Baqut podcast. Good morning, It's Tuesday,

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Speaker 2: the twenty fourth of February. I'm Caroline Hepcot in London and.

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Speaker 1: I'm Stephen Caroline Brussels. Coming up today, Trump's new ten

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Speaker 1: percent global trade tariff comes into force with a height

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Speaker 1: to fifteen percent still in the works.

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Speaker 2: Artificial intelligence real fear the AI scare trade erupts again

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Speaker 2: following a report warning of mass white collar layoffs.

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Speaker 1: Plus putting each other in the shade Meta and essel

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Speaker 1: or Luxotacus spar over the pricing of smart glasses.

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

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Speaker 1: Donald Trump's new ten percent global tariffs are now in effect.

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Speaker 1: The US President signed an executive order last Friday authorizing

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Speaker 1: the ten percent levy after the Supreme Court struck down

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Speaker 1: his original sweeping duties. Trump subsequently threatened to raise the

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Speaker 1: rate to fifteen percent, is not yet officially issued a

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Speaker 1: directive to increase it. Eugene Soroca, executive director of the

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Speaker 1: Port of Los Angeles, It says firms have spent recent

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Speaker 1: days scrambling to understand how the levies will affect them.

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Speaker 4: Many companies were working on their ledgers and trying to

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Speaker 4: calculate what their new effective teriff rates would be. Now,

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Speaker 4: these tariffs under Section one twenty two of the Trade

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Speaker 4: Act are a lot more prescriptive, had many more exclusions,

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Speaker 4: and are temporary, which means there will be more debate,

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Speaker 4: more capitulation going downline, and more uncertainty.

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Speaker 1: Eugene Soroca is speaking as the White House says it's

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Speaker 1: working on a formal order to lift the global rate

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Speaker 1: to fifteen percent, although no timeline for that move has

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Speaker 1: been finalized.

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Speaker 2: Well. An assessment by the European Union has found that

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Speaker 2: President Trump's planned fifteen percent increase means that levees on

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Speaker 2: some goods would be above the fifteen percent ceiling agreed

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Speaker 2: in the EUUs trade deal. Monday, the European Parliament suspended

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Speaker 2: legislative work on approving that agreement, requesting clarity on Trump's

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Speaker 2: new trade policy. Josh Winingrove is Bloomberg's White House reporter.

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Speaker 5: Even by the standards of this administration, which is not

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Speaker 5: exactly like priding itself on meticulous long term planning and

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Speaker 5: sticking to it, this has been chaotic, and so some

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Speaker 5: of the follow we're seeing is from the lack of specificity.

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Speaker 5: The story of the Europeans complaining that some of their

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Speaker 5: terrorists have effectively risen. That's because they've sort of papered

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Speaker 5: over quickly these terrafts without exclusions that sort of, you know,

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Speaker 5: nip and tuck around some of the deals that were

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Speaker 5: painstakingly negotiated, in particular how they stack on top of

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Speaker 5: each other.

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Speaker 2: Josh Win Grove, speaking there after, President Trump said on

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Speaker 2: social media on Monday that he'll put much higher tariffs

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Speaker 2: on countries that quote play games with the Supreme Court ruling.

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Speaker 1: Stocks fell and another AI scare trade after a research

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Speaker 1: report outlined the sweeping potential impact of artificial intelligence on jobs, sectors,

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Speaker 1: and economy. He's like the US little known research company

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Speaker 1: Citrini imagined a world where consumers used AI agents to

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Speaker 1: avoid credit card fees and delivery apps. In response, stocks

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Speaker 1: including American Express, Blackstone, and door Dash fell by at

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Speaker 1: least six percent, something which surprised the report's co author Alapsha.

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Speaker 3: I thought there was going to be a small reaction.

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Speaker 6: It was definitely larger than we expected, but I think

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Speaker 6: it's not that surprising when you take a step back

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Speaker 6: and consider kind of where the markets are in the US.

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Speaker 6: You know, the AI trade has been going on for

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Speaker 6: three and a half years. It's been more or less

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Speaker 6: a straight line up, and essentially like everyone is max

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Speaker 6: long today and so there really aren't many incremental buyers left,

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Speaker 6: and so it on the one hand, you know, spookspeople

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Speaker 6: when when you do consider what is negative about this?

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Speaker 6: But I think specifically the market right now is trying

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Speaker 6: to digest this idea that AI has gotten a lot

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Speaker 6: more powerful in the last six months.

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Speaker 1: Speaking to Bloomberg Show, out of that he thinks governments

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Speaker 1: should start taxing AI to prepare for the effects of

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Speaker 1: coming mass unemployment. He expects AI could cut white collar

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Speaker 1: employment by five percent over the next eighteen months.

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Speaker 2: Jamie diamond says that he sees parallels to the two

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Speaker 2: thousand and eight global financial crisis, when a rush to

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Speaker 2: make loans ended disastrously. Speaking to investors yesterday, the JP

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Speaker 2: Morgan CEO suggested that some lenders are making riskier decisions

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Speaker 2: in a bid to boost net interest income. According to Diamonds,

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Speaker 2: some of those decisions are related to artificial intelligence.

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Speaker 6: You've moved.

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Speaker 7: Credit cycle is normal, so you have a recession of

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Speaker 7: a rise in credit losses. The surprise has often been

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Speaker 7: latch industry, you didn't expect newspapers in two thousand or more,

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Speaker 7: and buffer businesses you didn't expect utilities and phone companies

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Speaker 7: in eight nine. And this time around it might be

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Speaker 7: software because of.

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Speaker 2: The IA JP Morgan CEO Jmie Diarmond that is speaking

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Speaker 2: at an investor event on Monday. The news comes as

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Speaker 2: the financial industry, like many others, has suffered declines in

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Speaker 2: recent weeks due to AI concerns. Diamond added that he

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Speaker 2: expects the credit cycle will eventually sarah again, though he's

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Speaker 2: not sure when.

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Speaker 1: Standard Chartered has announced for fresh share by backworth one

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Speaker 1: and a half billion dollars. That's as the bank reported

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Speaker 1: weaker than expected fourth quarter earnings, with adjusted pre tax

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Speaker 1: profits of one point two four billion dollars, profits that

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Speaker 1: were hit by a two hundred and thirty three million

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Speaker 1: dollar charge from the bank's Fit for Growth efficiency program.

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Speaker 1: Standard charter It says that expects income growth this year

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Speaker 1: to be around the bottom end of its five to

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Speaker 1: seven percent range.

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Speaker 2: UK police have arrested former British Ambassador to the US,

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Speaker 2: Peter Mandelson on suspicion of misconduct in public office. This

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Speaker 2: comes after the US Department of Justice released emails allegedly

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Speaker 2: showing him forwarding government information to Jeffrey Epstein. Mandalson was

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Speaker 2: released on bail early this morning, but is still under investigation.

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Speaker 2: He has not been charged and his lawyer has declined

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Speaker 2: to comment. Bloomberg's James Walcock has more.

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Speaker 8: Peter Manlson's arrest deepens the crisis engulfing Prime Minister Kirs Starmer.

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Speaker 8: The UK leader picked the Labor grandee to be his

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Speaker 8: US ambassador despite Manilsson's known links to Jeffrey Epstein. In

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Speaker 8: the wake of the fresh revelations, stepping from emails released

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Speaker 8: by the Department of Justice, Starmer's chief of staff, communications chief,

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Speaker 8: and cabinet secretary all quit their posts, and Conservative leader

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Speaker 8: Kerry Baidnock has further criticized the Prime Minister's choice, saying

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Speaker 8: Manuson's arrest was quote the defining moment of Sirkir's premiership

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Speaker 8: in London. James Walcock, Bloomberg Radio.

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Speaker 1: It's been four years since Russia began its full scale

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Speaker 1: invasion of Ukraine and US President Donald Trump's efforts to

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Speaker 1: end the war or Starling. Peace talks have already blown

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Speaker 1: through several deadlines, and even some American officials admit privately

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Speaker 1: that they see no signs Putent is willing to budge

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Speaker 1: Vitali Klitko as the mayor of Kiev.

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Speaker 9: War can stop easily one person who beginnings the war,

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Speaker 9: I talking about presidents of Russia.

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Speaker 3: Would you let's go out of that?

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Speaker 1: Any peace steal cannot be a capitulation from Ukraine. One

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Speaker 1: concern among Kiev's allies is that Putin may agree to

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Speaker 1: a ceasefire that would allow Trump to claim success while

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Speaker 1: Russia continues a campaign of sabotage, hybrid warfare or election interference.

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Speaker 2: Progress towards gender equality at the top of British businesses

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Speaker 2: is a kingly slow. That's according to the CEO of

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Speaker 2: the foot Sea Women Leaders Review, which has released its

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Speaker 2: latest report, Bluebig C.

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Speaker 3: What Adebayo has more.

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Speaker 10: The average number of female foot C one hundred CEOs

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Speaker 10: didn't move at all last year. Findings from a government

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Speaker 10: backed review revealed the number of women at the helm

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Speaker 10: of UK companies peaked in twenty twenty three, when ten

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Speaker 10: out of the one hundred bosses were women. That is,

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Speaker 10: the foot C three point fifty, which includes mid sized

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Speaker 10: business is missed a voluntary target of forty percent of

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Speaker 10: women in top executive roles by twenty twenty five. However,

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Speaker 10: board representation amongst the group exceeded the same goal, hitting

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Speaker 10: forty three percent. Findings also showed that female representation was

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Speaker 10: notably stronger amongst non executive directors in London. Tee we

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Speaker 10: at a buyot Bloomberg Radio.

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Speaker 2: And those are our top stories for you this morning.

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Speaker 2: Investors seem pretty jumpy today and yesterday about the impact

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Speaker 2: of AI and the trade tariff uncertainty. IBM shares plunged

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Speaker 2: thirteen percent on a new anthropic tool, the worst day

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Speaker 2: more than twenty five years for IBM. But US and

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Speaker 2: European stop futures this morning are actually up at least

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Speaker 2: two tenths of one percent. Some Asian equities also shrugging

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Speaker 2: off the US sell off. Just look at the Cosby

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Speaker 2: up by two percent and Taiwan's taie X also up

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Speaker 2: by two point seven percent this morning. The yen is

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Speaker 2: down more tensions between China and Japan. European car sales

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Speaker 2: also for January job three and a half percent. So

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Speaker 2: of those are the markets and what could move.

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Speaker 1: Then in a moment, we'll bring you the latest on

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Speaker 1: Donald Trump's new global tariffs, plus why Meta and It's

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Speaker 1: smart glasses partner Essel or Luxotaka might not be seeing

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Speaker 1: eye to eye. But another story that's caught a rye

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Speaker 1: this morning on why maybe you should be thinking about

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Speaker 1: a trip to Greenland this summer.

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Speaker 2: Now.

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Speaker 1: The geopolitical headlines, of course, has had us all talking

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Speaker 1: about Greenland for months, but Jackie Cardanio has been writing

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Speaker 1: about how really that island is gearing up for another

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Speaker 1: bumper tourist season. In their own way, they did have

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Speaker 1: a big jump in tourists last year. The first direct

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Speaker 1: flights from the US started from Newark Airport, and their

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Speaker 1: new flights from Copenhagen as well. They are new airports

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Speaker 1: opening this year as well. The experience, though, is what

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Speaker 1: Jackie has really been writing about the cop my eye.

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Speaker 1: There may be similarities, she says, with Iceland, but it's

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Speaker 1: a completely different scenario. Eighty percent of Greenland is essentially

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Speaker 1: a sheet of ice, getting around in fives, usually a

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Speaker 1: boat or a helicopter. Nothing is impervious, she underlines on

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Speaker 1: several occasion, to the whims of weather and you might

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Speaker 1: be going there looking for a luxury experience, but some

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Speaker 1: of the people she spoke to. One of them, I thought,

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Speaker 1: rather diplomatically, said we've had some private jetlines that didn't

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Speaker 1: really fit in ch I think is the suggestion that

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Speaker 1: while there's lots of great fresh food, fresh fish to

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Speaker 1: be had, you know, there was apparently somebody decided they

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Speaker 1: wanted a birthday cake. It had to be brought by

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Speaker 1: boat for two hours and barely survived. So you know,

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Speaker 1: if you're doing travel around Greenland, you must be prepared.

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Speaker 1: It's a lot of glamping, and the prices are steep

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Speaker 1: to go with it, I can tell you. But it

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Speaker 1: does sound like an incredible experience if you're prepared, and

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Speaker 1: I think resilient might be an operative word if you're

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Speaker 1: panning a trip.

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Speaker 2: Yeah, listen, the season is also about three barely four

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Speaker 2: months even to visit, to be honest, and there are

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Speaker 2: very many roads, so you really do have to be prepared.

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Speaker 2: I mean it does sound amazing. But yes, I love

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Speaker 2: the fact that in the piece they say there is

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Speaker 2: no Amazon Prime here, so yes, you have to be

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Speaker 2: ideal to be honest.

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Speaker 1: Yeah, we'll bet link to that story in our podcast

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Speaker 1: show notes. Let's bring you more now though, on the

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Speaker 1: newest round of American tariffs. Donald Trump's new ten percent

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Speaker 1: global levy come into force early this morning after Friday's

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Speaker 1: Supreme Court decision. Our chief Haser correspondent Rosalind Matheson is

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Speaker 1: with us for more z. What has changed then for

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Speaker 1: US trading partners with this new tariff.

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Speaker 11: Wow, the landscape is changing pretty quickly because some countries

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Speaker 11: had arrangements that may be now are less favorable for them.

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Speaker 11: Some actually find themselves in in a better position potentially

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Speaker 11: with this ten percent. But a big question mark obviously,

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Speaker 11: because the administration is saying officials are telling us they

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Speaker 11: are looking it away to get that to the fifteen

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Speaker 11: percent very quickly that Donald Trump did threaten, so that

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Speaker 11: could move and change again itself quite quickly. But beyond that,

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Speaker 11: there's sort of a lot of uncertainty for trading partners

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Speaker 11: about the status of their trade deals and how does

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Speaker 11: this affect the terms that they may already have agreed to.

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Speaker 11: And that's why you're seeing some places tap the brakes

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Speaker 11: a bit, including India and obviously the European Union freezing

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Speaker 11: the ratification process of the trade deal through the European Parliament,

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Speaker 11: which is to pause and say, hang on, we need

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Speaker 11: to actually take stock and make sure in all of

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Speaker 11: this fine print that we're not going to be worse

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Speaker 11: off on specific products for example, or sectors for example,

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Speaker 11: and also anticipating that the administration of the US is

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Speaker 11: now going to launch all these investigations, broader investigations under

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Speaker 11: the parameters of national security or anti discrimination. And that's

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Speaker 11: a whole lot of different sectors. You know, that includes

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Speaker 11: batteries for example, metals, other things. And so the question

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Speaker 11: is how does that affect, you know, potentially the existing

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Speaker 11: arrangements that you've got, And so for a lot of

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Speaker 11: companies and countries, the trick is to look through the

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Speaker 11: one hundred and fifty days of this ten percent or

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Speaker 11: fifteen percent and anticipate what it might come after that

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Speaker 11: and how that affects your existing arrangements or your trade

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Speaker 11: deal and whether that needs to be reconsidered.

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Speaker 2: Yeah, well, the European Union is warning that the new

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Speaker 2: tariffs break their trade deal with the US. You know,

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Speaker 2: the obviously a US ally maybe seeing high tariffs, you know,

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Speaker 2: how's them pausing for thought? How significant is this European

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Speaker 2: Union warning?

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Speaker 11: Well, it is significant, and it'd be interesting to see

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Speaker 11: how Donald Trump does react to that, as some of

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Speaker 11: his warnings that he's been issuing about, you know, punishing

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Speaker 11: certain countries. Is that a shot across about the EU

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Speaker 11: to get this done, because of course they froze the

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Speaker 11: ratification process previously, just briefly over the dispute over Greenland.

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Speaker 11: Now they've frozen it again and around reporting as she

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Speaker 11: was saying, shows that initial investigations show that it actually

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Speaker 11: can break the terms of the trade deal higher levees

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Speaker 11: on some products like cheese, butta plastics, textiles, for example.

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Speaker 11: So they're quite rightly probably saying we need to pause here.

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Speaker 11: It was interesting because pointing shows there was this meeting

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Speaker 11: obviously of lawmakers and ambassadors, and many trade ambassadors in

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Speaker 11: the EU said they did want to keep the deal.

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Speaker 3: They want to work out how to keep the deal.

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Speaker 11: They just don't know at this stage how they can

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Speaker 11: or how quickly they can. And so that again is

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Speaker 11: sort of the point that EU finds itself at, but

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Speaker 11: it does risk putting itself back into the crossheads very

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Speaker 11: much with Donald Trump as a result.

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Speaker 1: Okay Ras, thanks very much for joining US Chief Asia

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Speaker 1: correspondent razaland Matheson there. Stay with us more from Bloomberg

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Speaker 1: Daybreak Europe coming up after this.

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Speaker 2: Now Meta and Essilor Luxottoka have taken the lead in

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Speaker 2: smart glasses with more than seven million frames sold last year,

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Speaker 2: but now the partners are navigating tensions over pricing and

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Speaker 2: other strategic differences as rivals prepared to challenge their position.

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Speaker 2: Our Italy Bureau chief Kira Alberanesi joins us now for

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Speaker 2: more on this. Good morning, Kiara, this has been This

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Speaker 2: has been a six year collaboration, hasn't it between Meta

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Speaker 2: and Loxotica so far? What successes they had with it.

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Speaker 9: It's been a very interesting collaboration, not only because it's

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Speaker 9: been six years, but because they have been really the

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Speaker 9: two companies at the forefront of this revolution that is

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Speaker 9: the one of AA glasses. Now they are coming under

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Speaker 9: the strain of more competition coming into the market. The

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Speaker 9: successes has been like to really launch and bring to

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Speaker 9: us mass consumers that idea, and they solved millions of

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Speaker 9: glasses and they expect to do so in this year

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Speaker 9: as well.

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Speaker 1: But our reporting this morning looks at some of the

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Speaker 1: challenges now in this partnership. What's gone wrong at.

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Speaker 9: The moment, Like, the main challenge is to find balance

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Speaker 9: between two companies that have very different routes. One is

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Speaker 9: a domestic Italian company that was created by a single

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Speaker 9: entrepreneur as a small factory and then has become global,

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Speaker 9: and the other one is Meta, the tech giant, So

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Speaker 9: they have different priority is in terms of pricing and volumes,

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Speaker 9: and they're working together to find a compromise.

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Speaker 2: M So what does the future then like for the

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Speaker 2: smart glasses market? Can Meta and Lookxotica sort of stay

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Speaker 2: as the key players as you say, selling kind of

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Speaker 2: millions of units, that's.

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Speaker 3: A one billion question they That is.

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Speaker 9: Going to depend a lot on the competition and what

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Speaker 9: other companies are also going to come to the poor.

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Speaker 9: But I think they're going to find a solution and

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Speaker 9: strike a balance and mostly focus on the US market

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Speaker 9: where we should expect most most growth coming up.

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Speaker 1: With more I suppose competition in this market though as well?

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Speaker 1: What about questions about things like pricing? How is exactly

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Speaker 1: that going to play out in this partnership.

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Speaker 9: The Lion's sharing this partnership is definitely matter for their

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Speaker 9: their size and also because they have a stake in

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Speaker 9: esclar So at the end of the day, I would

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Speaker 9: expect they to have a stronger sain in terms of

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Speaker 9: where things are going to go and shape up. We're

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Speaker 9: going to see andalot will depend also on what our

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Speaker 9: companies and whether the products are going to come to

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Speaker 9: the market challenging those processes. Clearly, if they're going to

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Speaker 9: set a price but the main competitor is going to

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Speaker 9: set it for half, they're going to have to refrain

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Speaker 9: their strategy.

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Speaker 2: Yeah, okay, so that's going to be an interesting point.

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Speaker 2: Isn't it a hugely competitive field for wearable technology? Where

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Speaker 2: it goes next? Our Italy buiachfqre Alberezi, thank you so

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Speaker 2: much for joining us. Look, I think this is such

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Speaker 2: a fascinating conversation. What is the use case for these

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Speaker 2: high spec glasses, for these high tech glasses? Not sure

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Speaker 2: that it's been fully made. The businesses say that this

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Speaker 2: could replace your smartphone. You can give it voice commands,

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Speaker 2: you can take photographs, you can take video. I wonder

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Speaker 2: seven is it antiquated to ask about what this means

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Speaker 2: about privacy? Clearly the glasses aren't going to be banned

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Speaker 2: or prevented on those grounds, but there's a whole debate

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Speaker 2: about facial recognition recording and so on.

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Speaker 1: Yeah, I mean I wonder too. This feels a bit

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Speaker 1: like when smart devices first emerged as well, and people

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Speaker 1: are getting their smart watches, and you could have thought like,

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Speaker 1: you don't really need a smart watch.

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Speaker 3: You've already got a phone.

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Speaker 1: Why And then we've seen over time, but it's been

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Speaker 1: a fairly slow burn for a lot of those devices

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Speaker 1: as well. I mean, if you look at the numbers involved,

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Speaker 1: so IDC experts in this area say that smart glasses

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Speaker 1: are expected to reach around thirty million units by twenty

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Speaker 1: twenty nine. By comparison, you've got about a billion smartphones

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Speaker 1: a year ship, So it might be quite a slow

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Speaker 1: burn in terms of the build up of these things

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Speaker 1: as well. But whereas I might sort of think, well, no,

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Speaker 1: I'd never really want that, I do wonder. I still

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Speaker 1: don't hold a smart watch, but I do really feel

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Speaker 1: like the questions around the utility of these things can

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Speaker 1: be developed over time. This is Bloomberg Daybreak Europe, your

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