WEBVTT -  Monaco Explosion Manhunt, WhatsApp’s Big Change, Germany Exits World Cup

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

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<v Speaker 2>This is the.

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<v Speaker 3>BlueBag DAYVIQRE podcast. Good morning, It's Tuesday, the thirtieth of June.

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<v Speaker 3>I'm Caroline Hepke in London and I'm.

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<v Speaker 4>Stephen Caroline Brussels. Coming up today. An explosive device seriously

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<v Speaker 4>injures three people in Monaco, as the suspected attacker flees

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<v Speaker 4>to France.

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<v Speaker 3>The ECB president Christine Legard tounts the EU's growing ability

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<v Speaker 3>to resist global economic upheaval.

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<v Speaker 4>Plus what's happening with the world's most popular messaging app.

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<v Speaker 4>Why three billion people will soon be able to connect

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<v Speaker 4>to each other without revealing their phone number.

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<v Speaker 3>Let's start with the roundup of our top stories.

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<v Speaker 4>A man hunters underway in France after three people, including

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<v Speaker 4>a teenager, were injured in an explosion at an apartment

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<v Speaker 4>building in Monaco. French media reporting that one of Ukraine's

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<v Speaker 4>richest oligarchs, Vadim Ermolaev, is among the wounded. Monico's Minister

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<v Speaker 4>of States described the incident, which took place at around

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<v Speaker 4>nine pm local time, as a deliberate explosion. Jehaues Spinelli,

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<v Speaker 4>mayor of the neighboring French town, Bosslet, explained more about

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<v Speaker 4>what happened.

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<v Speaker 5>Visibly, an explosive device was placed in front of the

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<v Speaker 5>entrance of a building, injuring several people. One person fled

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<v Speaker 5>running to the town of Boslet. We have been able

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<v Speaker 5>to follow him with a camera in the town of Boslet.

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<v Speaker 5>We have immediately informed the French National Police, who are

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<v Speaker 5>working in collaboration with the municipal police of Bosslet and

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<v Speaker 5>obviously with security of the Principality of Monaco.

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<v Speaker 4>As Bosele is mayor. Speaking there, Monico's public prosecutor Stefan

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<v Speaker 4>Cibo said a suspect had left a bag or package

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<v Speaker 4>in the building's lobby before leaving.

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<v Speaker 3>Europe is becoming less vulnerable to external shocks, according to

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<v Speaker 3>the European Central Bank President Christine Lagarde. Speaking at the

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<v Speaker 3>ECB's annual retreat in Cintra, the central Bank chief said

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<v Speaker 3>that stronger banking and fiscal regulations, as well as investments

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<v Speaker 3>in low carbon energy, have paid off for the whole region.

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<v Speaker 1>The euro Area has also whether the largest US tariff

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<v Speaker 1>increase in almost a century, as well as what the

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<v Speaker 1>International Energy Agency has called the largest oil supply disruption

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<v Speaker 1>in history that didn't go without a significant cost. It

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<v Speaker 1>has been substantial, but the economy has not been derailed.

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<v Speaker 3>Christine Legald's comments came after the ECB raised interest rates

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<v Speaker 3>just weeks ago in a bid to contain price pressures

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<v Speaker 3>triggered by the Iran War. While all prices have retreated

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<v Speaker 3>since the hike, policymakers, including Isabelle Schnabel, argue that boring

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<v Speaker 3>costs will probably still need to rise further.

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<v Speaker 4>The European Union and China have set in October deadline

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<v Speaker 4>to make progress on a series of trade disputes. As

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<v Speaker 4>part of the effort, the two economic powers have agreed

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<v Speaker 4>to establish a joint platform to monitor trade flows and

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<v Speaker 4>identify any sudden surges. Speaking after meeting China's Commerce minister

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<v Speaker 4>in Brussels, EU Trade Commissioner Maracheftovich said both sides would

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<v Speaker 4>work together to resolve their issues.

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<v Speaker 6>Today's discussion were intensive, focused and constructive. My objective from

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<v Speaker 6>the outset has been clear to begin balancing the trade

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<v Speaker 6>relationship between the European Union and China. The gap is widening,

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<v Speaker 6>the China's export to the EUKE rising, while our market

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<v Speaker 6>share in China keeps shrinking.

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<v Speaker 4>Marschaftovich faces an uphill battle that EU is trade deaf

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<v Speaker 4>sit with China reached three hundred and sixty billion euros

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<v Speaker 4>last year, with every member state running a deficit.

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<v Speaker 3>The UK is hoping AI and drone investment will help

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<v Speaker 3>transform its aging military. Prime Minister Kistarma is that to

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<v Speaker 3>publish a heavily delayed defense investment plan later today. He

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<v Speaker 3>met NATO's Secretary General Margutta yesterday and highlighted the importance

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<v Speaker 3>of the military alliance so once.

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<v Speaker 7>Again into the UK, into LATO and beyond that to

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<v Speaker 7>the more European into the boar board for the future

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<v Speaker 7>of proser single most successful military lass as.

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<v Speaker 8>Well as are known.

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<v Speaker 3>However, Starmer's plan has been criticized for being underfunded, abow

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<v Speaker 3>that triggered the resignation of Defense Secretary John Healey. The

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<v Speaker 3>Labor government has vowed to raise defense bending to two

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<v Speaker 3>point six percent of GDP next year and three and

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<v Speaker 3>a half percent by twenty thirty five, but has not

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<v Speaker 3>set out the path between the two targets.

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<v Speaker 4>Iran is dialing up its rhetoric about controlling the Strait

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<v Speaker 4>of horror moves ahead of new talks with the United States.

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<v Speaker 4>Bloomberg's midleast correspondent to beer Abu Omar says it's clear

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<v Speaker 4>Tehran's greater control of the strategic waterway.

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<v Speaker 2>We've heard from several officials in Iran saying that once

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<v Speaker 2>the sixty day period is over, we're going to start

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<v Speaker 2>seeing tolls or fees starting to get charged to shipowners

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<v Speaker 2>in the strait of her moves, and so Iron's position

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<v Speaker 2>continues to be solidified through official seeing that whether or

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<v Speaker 2>without the help, they will continue to bring up the

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<v Speaker 2>topic of.

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<v Speaker 4>TOLLINGA birabem Our ads that Aran's stance puts more pressure

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<v Speaker 4>on its talks with the US, later to happen in

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<v Speaker 4>Katar later today. Countries around the world are concerned that

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<v Speaker 4>any toll would add to already high energy prices.

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<v Speaker 3>WhatsApp is select the messaging services three billion global users

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<v Speaker 3>select a username for their account. B begs You and

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<v Speaker 3>Potts has more on the changes.

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<v Speaker 9>From this week. WhatsApp users can reserve a unique username.

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<v Speaker 9>It's a change designed to increase privacy by letting people

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<v Speaker 9>connect without having to share their phone number. The feature

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<v Speaker 9>resembles similar ID systems offered by rival messaging apps, including Signal,

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<v Speaker 9>With the usernames becoming operational later this year. To avoid

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<v Speaker 9>impersonation and scams, Whatsapple set aside existing Facebook and Instagram

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<v Speaker 9>usernames for their owners during the reservation period. In London,

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<v Speaker 9>I'm Unepots, Bloomberg Radio.

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<v Speaker 4>Two more European teams are out of the World Cup

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<v Speaker 4>after losing in the round of thirty two on penalties.

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<v Speaker 4>Germany fell to Paraguay, who've declared today a national holiday

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<v Speaker 4>after pulling off the tournament's biggest upset so far, eliminating

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<v Speaker 4>the four time champions in a shootout. Here's the moment

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<v Speaker 4>Fans in the South American country celebrated. The result was

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<v Speaker 4>reaction from Paraguay's capital ascension there. Earlier this morning, Morocco

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<v Speaker 4>defeated the Netherlands after their match went to spot kicks,

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<v Speaker 4>eventually tryumphing three to two. The team is now set

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<v Speaker 4>to face Canada in the round of sixteen.

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<v Speaker 3>Okay, good stuff of football. All right, let's think about

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<v Speaker 3>the markets this morning? Well, I mean, we as excited

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<v Speaker 3>about global equities, maybe on trap for their best quarter

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<v Speaker 3>in almost six years. Asian stocks have seen a second

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<v Speaker 3>quarter boom. Just look at the COSPI up seventy one

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<v Speaker 3>percent this quarter. MSCI Asia Pacific index this morning continues

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<v Speaker 3>to rally up by one point four percent. You see

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<v Speaker 3>gains for the CSI three hundred and the tie EGGX

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<v Speaker 3>These Xetra tacts in Germany, though underperforming the stock six

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<v Speaker 3>hundred this month, which is one a notable point in

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<v Speaker 3>terms of European stock futures. This morning, we're currently up

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<v Speaker 3>by six almost seven tenths of one percent. There was

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<v Speaker 3>also a tech rally in the US on War Street yesterday.

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<v Speaker 3>The Japanese yet hits a four decade low. That's got

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<v Speaker 3>a lot of speculation about further intervention. Rencrewed futures down

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<v Speaker 3>one percent ahead of these expected possible US Iran talks.

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<v Speaker 3>Tenure treasury years not doing much this morning four point

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<v Speaker 3>three seven percent, and gold prices so gold slipping just

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<v Speaker 3>below four thousand dollars down seven tens of one percent

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<v Speaker 3>this morning. Remember we do have French, German, Italian CPI,

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<v Speaker 3>so inflation data all to come later and nine point

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<v Speaker 3>fifteen pm UK time tonight it will be earnings out

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<v Speaker 3>from Nike. Those are the markets.

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<v Speaker 4>Well, in a moment, we'll bring you more on that

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<v Speaker 4>explosion in Monaco, plus what to expect from the ucv's

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<v Speaker 4>forum in Centro and Portugal. But first of the story

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<v Speaker 4>that has caught her eye this morning, and the etiquette

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<v Speaker 4>of using AI note takers during video calls. Isilapawsko been

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<v Speaker 4>writing about this for Bloomberg Business Week, and those little

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<v Speaker 4>blank squares that can appear in zoom calls, the note

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<v Speaker 4>taking bots that are lurking plenty of legal issues around

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<v Speaker 4>who's listening to meetings and who has access to that

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<v Speaker 4>material afterwards, He's actually focusing on the interpersonal dilemmas that

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<v Speaker 4>they can create between those who are very pro AI

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<v Speaker 4>and those who are perhaps more skeptical. She describes it

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<v Speaker 4>as a new layer of fisient and a times outrage

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<v Speaker 4>in workplace interactions. So people complain that people are skipping

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<v Speaker 4>meetings and sending note takers AI note takers in their place.

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<v Speaker 4>But there's also this problem that the note takers pick

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<v Speaker 4>up the small talk, the casual gossip, perhaps the jokes

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<v Speaker 4>that fill down time and meetings. Do we want this

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<v Speaker 4>to be recorded? I don't think so.

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<v Speaker 3>I have an image of Rita Skeita, you know, watching

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<v Speaker 3>over me scribbling everything down. I don't love that idea,

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<v Speaker 3>but mind you, on the other hand, we got used

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<v Speaker 3>to CCTV. People were kind of worried about the privacy

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<v Speaker 3>implications of that, But this does feel different in terms

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<v Speaker 3>of scale, doesn't it. The other thing that I think

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<v Speaker 3>about with this issue is ideas, you know, giving your

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<v Speaker 3>ideas away to all of those note takers, and what

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<v Speaker 3>is done with all of those notes afterwards, where do

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<v Speaker 3>they go and how are they interpreted? I think that's

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<v Speaker 3>very very difficult issue that's going to have to be tackled.

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<v Speaker 4>I just think there's the question of tone. I mean,

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<v Speaker 4>the things that you would never down in an email,

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<v Speaker 4>that you might casually say, which are part of you know,

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<v Speaker 4>regular human interaction at work. Not necessarily sure, I want

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<v Speaker 4>to have those that are taken to by anoetaker anyway,

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<v Speaker 4>very interesting people put a link to us in our

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<v Speaker 4>podcast show notes. Well, let's bring you more details now

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<v Speaker 4>of that explosion in Monaco which injured three people. French

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<v Speaker 4>media reporting the victims, where the Ukrainian oligarch the dem

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<v Speaker 4>ermaelev and his family are reported to at Bio has

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<v Speaker 4>more on this story too of what do we know

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<v Speaker 4>about what happened?

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<v Speaker 8>Well, there are limited details so far, but we do

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<v Speaker 8>know that three people, including a teenager were wounded on

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<v Speaker 8>Monday in an explosion at a residential building in Monaco

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<v Speaker 8>that took place around nine pm local time. Authorities have

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<v Speaker 8>described it as a deliberate attack at this point, and

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<v Speaker 8>we've heard from the mayor of the neighboring French town,

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<v Speaker 8>which is Bosolet. He's explained that there was an explosive

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<v Speaker 8>device placed in front of the entrance of the building

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<v Speaker 8>and that's what injured several people. He's also said that

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<v Speaker 8>one person fled the scene and actually ran to Bosaly.

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<v Speaker 8>We've also heard from Monaco Minister of State who's confirmed

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<v Speaker 8>that the suspect crossed the border into France on foot

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<v Speaker 8>and then was able to be identified via video surveillance

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<v Speaker 8>in Monaco and also in Bosolet. So now currently the

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<v Speaker 8>investigation is ongoing. We know that the French National Police

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<v Speaker 8>are working in collaboration with both the municipal police of

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<v Speaker 8>Bosolet and also security of the Principality of Monaco. In

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<v Speaker 8>terms of the victim, as you mentioned, French media are

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<v Speaker 8>reporting that one of Ukraine's richest oligarchs, which is Verdim

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<v Speaker 8>I Ermalayev, is among the wounded. And it's worth mentioning

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<v Speaker 8>as well that Ukrainian media outlet Ukraine's Skapravda have said

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<v Speaker 8>that he was targeted by Ukrainian sanctions in twenty twenty

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<v Speaker 8>three for ties to Russia. That's really all we know

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<v Speaker 8>in terms of specific details so far.

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<v Speaker 3>Violent incidents like this are very rare in Monaco. What's

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<v Speaker 3>been the reaction from authorities.

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<v Speaker 8>That's true, Caroline, Monaco is a tiny area. It's actually

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<v Speaker 8>less than one square mile of land. They do have

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<v Speaker 8>very low crime rates, a very high degree of CCTV

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<v Speaker 8>usage as well. But it is worth considering that Monaco

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<v Speaker 8>is on the Financial Action Task Force and the EU

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<v Speaker 8>Gray List in terms of areas that are deemed insufficiently

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<v Speaker 8>vigilant about dirty money, so it's at high risk when

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<v Speaker 8>it comes to anti money laundering and counter terrorist financing efforts.

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<v Speaker 8>We've seen the Principality Titan laws around this, trying to

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<v Speaker 8>show that, trying to show authorities that it can take

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<v Speaker 8>meaningful enforcement action when it comes to that. But nevertheless,

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<v Speaker 8>this is very unusual for Monaco, and we've already heard

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<v Speaker 8>from the leader, Prince Albert the Second. He's called this

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<v Speaker 8>an odious act and said that all the country's services

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<v Speaker 8>are mobilized to ensure security. So at the moment the

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<v Speaker 8>investigation is ongoing. It's selectly. We might have more details

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<v Speaker 8>in the coming hours.

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<v Speaker 4>Okay to out a bio. Thank you very much, Stay

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<v Speaker 4>with us. Were from Bloomberg Daybreak. Europe coming up after this.

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<v Speaker 3>Now, the ECB president says that Europe is becoming less

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<v Speaker 3>vulnerable to outside shocks thanks to stronger regulation and more

0:13:18.800 --> 0:13:22.360
<v Speaker 3>investment into renewable energy. Christine Leagard was speaking at the

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<v Speaker 3>opening of the European Central Banks Annual Retreat in Portugal,

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<v Speaker 3>and our editor at large Francis Lackward joins us now

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<v Speaker 3>from CenTra for more. Good to speak to you, Francine.

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<v Speaker 3>Christine Leguard was quite good morning. She was quite hopeful

0:13:35.360 --> 0:13:37.800
<v Speaker 3>in her opening address. What did you think? There are

0:13:37.920 --> 0:13:40.920
<v Speaker 3>plenty of challenges that central bankers are going to be

0:13:40.920 --> 0:13:43.400
<v Speaker 3>discussing there, So what did you take away from what

0:13:43.440 --> 0:13:43.880
<v Speaker 3>she said?

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<v Speaker 10>So it was an interesting speech, and as always, it's

0:13:47.840 --> 0:13:50.240
<v Speaker 10>really nice being in CenTra because you have central banks

0:13:50.240 --> 0:13:52.360
<v Speaker 10>from really around the world trying to get to know

0:13:52.440 --> 0:13:55.760
<v Speaker 10>each other. If you're new or eleven new central bankers

0:13:56.000 --> 0:13:59.640
<v Speaker 10>you know worldwide that are here in CenTra. Also, Kevin

0:13:59.679 --> 0:14:03.040
<v Speaker 10>wats So the speech yesterday was really maybe a little

0:14:03.080 --> 0:14:06.000
<v Speaker 10>bit more hopeful than if it was in a press conference.

0:14:06.120 --> 0:14:08.480
<v Speaker 10>But Christine Leguard did not really shy away from also

0:14:09.200 --> 0:14:12.240
<v Speaker 10>really framing the big questions, which is they've decided not

0:14:12.320 --> 0:14:15.080
<v Speaker 10>to do forward guidance or not looking at forward guidance

0:14:15.280 --> 0:14:18.240
<v Speaker 10>because of the big uncertainty. So it's the energy shock

0:14:18.320 --> 0:14:21.160
<v Speaker 10>that really changed the trajectory for all these central banks

0:14:21.400 --> 0:14:25.000
<v Speaker 10>in the last seven to eight months, and she really

0:14:25.080 --> 0:14:27.880
<v Speaker 10>laid it out as we're not one hundred percent sure

0:14:28.000 --> 0:14:30.600
<v Speaker 10>what will come and because of the uncertainty, we don't

0:14:30.600 --> 0:14:33.480
<v Speaker 10>want to give forward guidance. But it's also very clear

0:14:33.520 --> 0:14:36.960
<v Speaker 10>that she really focused on the strength of the European economy.

0:14:37.600 --> 0:14:41.800
<v Speaker 10>She talked about financial stability and the fact that Europe

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<v Speaker 10>is getting more resilience to economic shocks, but that was

0:14:44.600 --> 0:14:47.600
<v Speaker 10>less interest rates and more on financial stability. So it

0:14:47.640 --> 0:14:50.680
<v Speaker 10>was an interesting speech. And then halfway through you had

0:14:50.720 --> 0:14:52.840
<v Speaker 10>Kevin Warris, who's really kind of the star of the

0:14:52.880 --> 0:14:55.960
<v Speaker 10>show this week because it's the first time since he

0:14:56.040 --> 0:14:59.440
<v Speaker 10>was appointed by President Trump that he gets to mingle

0:14:59.440 --> 0:15:02.480
<v Speaker 10>with other cent bankers and it's his first really big

0:15:02.520 --> 0:15:03.120
<v Speaker 10>trip abroad.

0:15:04.240 --> 0:15:05.480
<v Speaker 4>Now, Frian, you're going to be speaking to all the

0:15:05.520 --> 0:15:07.880
<v Speaker 4>key people there at center. Tell us about some of

0:15:07.880 --> 0:15:09.480
<v Speaker 4>the conversations that you're looking forward to.

0:15:11.120 --> 0:15:13.520
<v Speaker 10>Well, I'm looking forward to students speaking to the Chief

0:15:13.560 --> 0:15:16.400
<v Speaker 10>e Congress of the VCB, Philip Plane. I think it

0:15:16.480 --> 0:15:19.240
<v Speaker 10>will be an interview. We're all try and understand where

0:15:19.280 --> 0:15:21.560
<v Speaker 10>he sees the next hike. If you look at markets,

0:15:21.600 --> 0:15:24.440
<v Speaker 10>they are expecting the ECB to hike one more at

0:15:24.480 --> 0:15:27.800
<v Speaker 10>one more time this year. And you know, it'd be

0:15:27.880 --> 0:15:29.360
<v Speaker 10>great if he gave us a clue. I don't know

0:15:29.400 --> 0:15:30.720
<v Speaker 10>if you will, but it'd be great if he gave

0:15:30.760 --> 0:15:32.440
<v Speaker 10>us a clue on whether this would be in July

0:15:33.000 --> 0:15:36.480
<v Speaker 10>or September. Now, if you think about the problematic at hand,

0:15:37.320 --> 0:15:40.080
<v Speaker 10>so you're close to you know there there's not a

0:15:40.120 --> 0:15:42.920
<v Speaker 10>piece deal between the US and Iran. You're close to

0:15:42.960 --> 0:15:45.800
<v Speaker 10>a resolution, which means that you could see oil prices

0:15:45.960 --> 0:15:49.200
<v Speaker 10>fall even further. But at the same time, because the

0:15:49.320 --> 0:15:52.920
<v Speaker 10>energy prices went through such volatility in the last three

0:15:53.040 --> 0:15:56.000
<v Speaker 10>four months, you also see second round effect. So it'd

0:15:56.000 --> 0:15:59.320
<v Speaker 10>be really interesting to see how he places it, whether

0:15:59.360 --> 0:16:03.640
<v Speaker 10>it means that they really have to preempt Madame Legand

0:16:03.640 --> 0:16:05.640
<v Speaker 10>said something in her speech which then got a lot

0:16:05.640 --> 0:16:08.440
<v Speaker 10>of central bankers talking is that the hike they did

0:16:08.440 --> 0:16:10.920
<v Speaker 10>in June was not an insurance policy. Right then, she

0:16:11.000 --> 0:16:13.640
<v Speaker 10>looked at the data with her committee and they decided

0:16:13.680 --> 0:16:15.680
<v Speaker 10>that it was best to hike there. And so she

0:16:15.800 --> 0:16:18.600
<v Speaker 10>really pushed back against this idea that it's an insurance hike,

0:16:19.560 --> 0:16:22.600
<v Speaker 10>you know, if something were to happen more for oil

0:16:22.600 --> 0:16:24.800
<v Speaker 10>prices going higher. So I'll try and push them on

0:16:24.840 --> 0:16:26.360
<v Speaker 10>that as well.

0:16:26.400 --> 0:16:28.800
<v Speaker 4>Thanks for listening to Bloomberg Daybreak Europe.

0:16:28.920 --> 0:16:31.480
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