1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:10,200 --> 00:00:13,400
Speaker 2: This is the Bloomberg Daybreak Here podcast. Good morning, It's Wednesday,

3
00:00:13,440 --> 00:00:16,680
Speaker 2: the twenty first of January. I'm Stephen Carolyn London coming

4
00:00:16,760 --> 00:00:20,279
Speaker 2: up today. I doubt it. The US President Donald Trump

5
00:00:20,360 --> 00:00:24,040
Speaker 2: projects the idea that his Greenland threats will torpedo the

6
00:00:24,200 --> 00:00:27,400
Speaker 2: USEU trade deal. Air Force one is forced to turn

7
00:00:27,440 --> 00:00:30,640
Speaker 2: around as an electrical issue delays the start of Trump's

8
00:00:30,720 --> 00:00:34,840
Speaker 2: Davos trip. Plus Wall Street suffers its worst session since

9
00:00:34,880 --> 00:00:39,400
Speaker 2: April's Liberation Day meltdown as the Cell America trade crushes

10
00:00:39,600 --> 00:00:43,000
Speaker 2: US docks. Let's start with a roundup of our top stories.

11
00:00:43,520 --> 00:00:46,920
Speaker 2: The US President Donald Trump has dismissed threats of retaliation

12
00:00:47,000 --> 00:00:50,640
Speaker 2: from the European Union over his desire for control of Greenland.

13
00:00:51,000 --> 00:00:53,920
Speaker 2: Over the weekend, Trump announced tariffs on goods from eight

14
00:00:54,040 --> 00:00:57,360
Speaker 2: European countries unless he secured a deal to purchase the

15
00:00:57,520 --> 00:01:00,880
Speaker 2: Arctic territory. When asked whether those vise could trigger the

16
00:01:00,920 --> 00:01:04,880
Speaker 2: EU to break US investment pledges, here's what the President responded,

17
00:01:05,280 --> 00:01:05,840
Speaker 2: I doubt it.

18
00:01:06,080 --> 00:01:09,080
Speaker 3: Look they one. They need that agreement very badly with US,

19
00:01:09,160 --> 00:01:09,720
Speaker 3: they really do.

20
00:01:09,800 --> 00:01:12,520
Speaker 4: They fought very hard to get it, so I doubt that,

21
00:01:12,600 --> 00:01:13,680
Speaker 4: but we'll see what happens.

22
00:01:13,840 --> 00:01:16,280
Speaker 3: We have a lot of meetings scheduled on Greenland.

23
00:01:17,720 --> 00:01:20,120
Speaker 2: Trump was also asked how far he was willing to

24
00:01:20,120 --> 00:01:23,400
Speaker 2: go to secure Greenland. His response quote, you'll find out.

25
00:01:23,920 --> 00:01:26,280
Speaker 2: The US President's moved to strong arm Europe into a

26
00:01:26,319 --> 00:01:28,959
Speaker 2: Greenland deal as likely to dominate his appearance at the

27
00:01:28,959 --> 00:01:32,560
Speaker 2: World Economic Forum in Davos. Later. In his address to

28
00:01:32,600 --> 00:01:35,959
Speaker 2: the event, the French President Emmanuel Macron accused Trump of

29
00:01:36,000 --> 00:01:38,080
Speaker 2: trying to subordinate the EU.

30
00:01:38,840 --> 00:01:42,759
Speaker 5: Without collective governance co operation gives way to Lance's competition,

31
00:01:43,319 --> 00:01:47,400
Speaker 5: competition from the United States of America through trade agreements

32
00:01:47,400 --> 00:01:52,280
Speaker 5: at the undermine or exports interests, demand maximum concession concisions,

33
00:01:52,920 --> 00:01:56,640
Speaker 5: and openly aim to weaken and subordinate Europe.

34
00:01:56,920 --> 00:02:00,000
Speaker 2: Macron spoke after Trump threatened France with a two hundred

35
00:02:00,080 --> 00:02:03,920
Speaker 2: percent tariff on its wines if Macron didn't join his

36
00:02:04,040 --> 00:02:08,360
Speaker 2: so called Board of Peace for Gaza. Meanwhile, Greenland's Prime

37
00:02:08,360 --> 00:02:11,760
Speaker 2: minister said the Arctic Islands population and authorities need to

38
00:02:11,800 --> 00:02:15,680
Speaker 2: start preparing for a possible military invasion, even if it

39
00:02:15,760 --> 00:02:20,360
Speaker 2: remains an unlikely scenario. The President Trump's arrival in Switzerland

40
00:02:20,360 --> 00:02:22,440
Speaker 2: has been delayed after Air Force one was forced to

41
00:02:22,480 --> 00:02:25,399
Speaker 2: turn back shortly after its departure. The White House says

42
00:02:25,440 --> 00:02:28,600
Speaker 2: the plane had encountered a minor electrical issue. It returned

43
00:02:28,639 --> 00:02:31,320
Speaker 2: to joint based Andrews in Maryland, where Trump boarded a

44
00:02:31,320 --> 00:02:33,880
Speaker 2: backup plane, which has departed in the past few hours.

45
00:02:33,960 --> 00:02:36,160
Speaker 2: He has been expected. He had been expected to arrive

46
00:02:36,200 --> 00:02:39,120
Speaker 2: in Zork at five am local time to speak in

47
00:02:39,240 --> 00:02:43,680
Speaker 2: Davos at two thirty pm, the complication ultimately delaying his

48
00:02:43,760 --> 00:02:47,119
Speaker 2: travel to the Forum in Switzerland by more than two hours.

49
00:02:48,520 --> 00:02:51,440
Speaker 2: Canada's Prime Minister Mark Karney says countries have a choice

50
00:02:51,560 --> 00:02:55,400
Speaker 2: banned together or beyond the menu. At Davos, the former

51
00:02:55,440 --> 00:02:59,760
Speaker 2: Central Banker called time on the international rules based order.

52
00:03:01,400 --> 00:03:04,960
Speaker 6: We know the old order is not coming back. We

53
00:03:05,000 --> 00:03:10,040
Speaker 6: shouldn't warn it. Nostalgia is not a strategy, but we

54
00:03:10,160 --> 00:03:14,600
Speaker 6: believe that from the fracture we can build something bigger, better, stronger,

55
00:03:14,760 --> 00:03:18,880
Speaker 6: more just. This is the task of the middle powers,

56
00:03:19,639 --> 00:03:22,040
Speaker 6: the countries that have the most to lose from a

57
00:03:22,040 --> 00:03:26,359
Speaker 6: world of fortresses and a most to gain from genuine cooperation.

58
00:03:27,639 --> 00:03:30,560
Speaker 2: Carney's speech received a standing ovation at the World Economic

59
00:03:30,600 --> 00:03:33,000
Speaker 2: Forum and was echoed in comments to Bloomberg by the

60
00:03:33,000 --> 00:03:36,640
Speaker 2: former British Prime Minister Rishie Sunak. While Carney didn't directly

61
00:03:36,680 --> 00:03:39,200
Speaker 2: mention President Trump by name, he took aim at the

62
00:03:39,280 --> 00:03:44,360
Speaker 2: US president's pressure tactics and defended Greenland. Canada is overwhelmingly

63
00:03:44,400 --> 00:03:47,560
Speaker 2: reliant on trade with the United States, but last week

64
00:03:47,680 --> 00:03:51,600
Speaker 2: signed a trade deal with China. Markets are showing signs

65
00:03:51,600 --> 00:03:55,040
Speaker 2: of stabilizing today after tensions over Greenland and are out

66
00:03:55,080 --> 00:03:58,200
Speaker 2: in Japanese bonds triggered a broad sell off on Tuesday.

67
00:03:58,480 --> 00:04:00,360
Speaker 2: The S and P five hundred fell by more than

68
00:04:00,360 --> 00:04:03,560
Speaker 2: two percent, to raising its gains for the years so far,

69
00:04:03,720 --> 00:04:07,480
Speaker 2: as it logged its worst day since October and based

70
00:04:07,480 --> 00:04:11,680
Speaker 2: on one measure tracking US stocks, treasuries, corporate bonds, and bitcoin,

71
00:04:11,960 --> 00:04:16,280
Speaker 2: Tuesday mark the worst session since April's tariff induced sell off.

72
00:04:16,560 --> 00:04:19,320
Speaker 2: Bob michael is japing Morgan Asset Management's Global had a

73
00:04:19,320 --> 00:04:20,000
Speaker 2: fixed income.

74
00:04:20,600 --> 00:04:24,760
Speaker 4: I think this is a message from market participants to

75
00:04:24,880 --> 00:04:29,120
Speaker 4: the administration. We can only go so far, and they've

76
00:04:29,160 --> 00:04:31,719
Speaker 4: got to figure out where the line is. I think

77
00:04:31,920 --> 00:04:36,240
Speaker 4: what Bessin forgot to include was, yeah, the market had

78
00:04:36,240 --> 00:04:39,120
Speaker 4: to fit in April, and then they backed off of

79
00:04:39,200 --> 00:04:42,880
Speaker 4: a lot of things and then calm ensued now.

80
00:04:42,920 --> 00:04:46,000
Speaker 2: Bob Michael was speaking to Bloomberg after the Danish pension

81
00:04:46,080 --> 00:04:49,039
Speaker 2: Fund Academic or Pension, which has about one hundred million

82
00:04:49,080 --> 00:04:51,720
Speaker 2: dollars in US treasury, says it's planning to sell its

83
00:04:51,760 --> 00:04:54,479
Speaker 2: holdings by the end of the month. However, the CEO

84
00:04:54,600 --> 00:04:58,240
Speaker 2: of UBS, Sergio or Maati, has warned that Europeans could

85
00:04:58,279 --> 00:04:59,479
Speaker 2: be taking a big risk.

86
00:05:00,320 --> 00:05:04,880
Speaker 7: Diversifying away from America is impossible. I think that in

87
00:05:04,960 --> 00:05:09,000
Speaker 7: any major asset allocation one could probably think about having

88
00:05:09,080 --> 00:05:13,400
Speaker 7: an overweight or underweight. About diversifying away from the US

89
00:05:14,080 --> 00:05:17,799
Speaker 7: and also from the dollar is a quite dangerous.

90
00:05:17,400 --> 00:05:21,440
Speaker 2: Met sod Ramadi was speaking as a worsening crisis over

91
00:05:21,480 --> 00:05:24,880
Speaker 2: Greenland drove gold and platinum to fresh records, with silver

92
00:05:25,000 --> 00:05:30,279
Speaker 2: also near its all time peak. Intensions between Elon Musk

93
00:05:30,320 --> 00:05:33,359
Speaker 2: and Ryanair CEO Michael O'Leary have spilled into a second

94
00:05:33,400 --> 00:05:36,640
Speaker 2: week now the world's richest man is considering buying the

95
00:05:36,680 --> 00:05:39,640
Speaker 2: Irish airline. Re works team at Abio has more.

96
00:05:40,200 --> 00:05:41,599
Speaker 3: It's an unlikely crossover.

97
00:05:42,120 --> 00:05:45,479
Speaker 8: One builds rocket, the other sells nine euro flights in

98
00:05:45,520 --> 00:05:49,480
Speaker 8: an entirely different orbit. But it seems Michael O'Leary and

99
00:05:49,560 --> 00:05:53,360
Speaker 8: elon Musk are on a collision course. The online feud

100
00:05:53,440 --> 00:05:57,279
Speaker 8: reached new altitudes after O'Leary claimed he wouldn't install the

101
00:05:57,279 --> 00:06:01,200
Speaker 8: Tesla CEO's starling technology on his feet planes last week.

102
00:06:01,960 --> 00:06:05,159
Speaker 8: Since then, the two leaders have exchanged insults on x,

103
00:06:05,560 --> 00:06:08,799
Speaker 8: culminating in a poll posted to must account on Monday

104
00:06:09,160 --> 00:06:13,599
Speaker 8: asking followers if he should buy Ryanair. The prospects spooked

105
00:06:13,640 --> 00:06:17,679
Speaker 8: investors on both sides. Ryanair sales declined in Dublin trading,

106
00:06:18,000 --> 00:06:21,960
Speaker 8: while shares in Tesla also closed lower, and any Musk

107
00:06:22,160 --> 00:06:26,599
Speaker 8: takeover would require him to work around current EU regulations

108
00:06:26,960 --> 00:06:30,839
Speaker 8: which require European airlines to be majority owned and controlled

109
00:06:30,920 --> 00:06:35,400
Speaker 8: by EU nationals. In London, tad A Bio, Bloomberg Radio.

110
00:06:35,640 --> 00:06:37,400
Speaker 2: And those are your top stories on the markets. The

111
00:06:37,480 --> 00:06:40,799
Speaker 2: MSCI as A Pacific Index seven tenths of one percent lower.

112
00:06:40,800 --> 00:06:43,400
Speaker 2: Eurostocks fifty futures are down by a tenth of one percent,

113
00:06:43,520 --> 00:06:45,520
Speaker 2: although some signs of a recovery on the way. On

114
00:06:45,560 --> 00:06:48,840
Speaker 2: Wall Street, SMPE mine's up by three tenths after yesterday's

115
00:06:48,880 --> 00:06:51,880
Speaker 2: sell off. We are watching Japanese bonds this morning. Yields

116
00:06:51,920 --> 00:06:55,560
Speaker 2: are coming down after yesterday's dramatics selloff not a full recovery,

117
00:06:55,839 --> 00:06:59,320
Speaker 2: but the thirty year yield is fourteen basis points lower,

118
00:06:59,320 --> 00:07:03,359
Speaker 2: and the four forty year yield is then seventeen basis points.

119
00:07:03,640 --> 00:07:07,000
Speaker 2: This morning, in a moment, we'll bring you more and

120
00:07:07,040 --> 00:07:09,800
Speaker 2: what to expect from Donald Trump's Davos appearance, plus the

121
00:07:09,840 --> 00:07:12,600
Speaker 2: latest on the markets after yesterday's sell off. But another

122
00:07:12,640 --> 00:07:15,520
Speaker 2: story that Ruth been reading this morning, put your suit

123
00:07:15,560 --> 00:07:18,720
Speaker 2: back on. The rush towards dressing down at work is over.

124
00:07:18,880 --> 00:07:22,000
Speaker 2: That's the warning from Blomberg opinion columnst Andrea Felsted has

125
00:07:22,000 --> 00:07:25,960
Speaker 2: been looking at the evidence from catwalks, social media, retailers

126
00:07:26,120 --> 00:07:30,480
Speaker 2: and sales and which shows that we are wearing more

127
00:07:30,520 --> 00:07:34,280
Speaker 2: sophisticated clothing and shoes again in the US, the Clamber

128
00:07:34,320 --> 00:07:36,720
Speaker 2: for women's loafers, for example, I mean their medium prices

129
00:07:36,720 --> 00:07:40,040
Speaker 2: have risen by forty percent. Men are moving to wider

130
00:07:40,160 --> 00:07:42,800
Speaker 2: legged trousers and more relaxed jackets. Marks and Spencer so

131
00:07:42,840 --> 00:07:46,000
Speaker 2: has seen a fifteen percent jump in suit sales. So

132
00:07:46,120 --> 00:07:49,920
Speaker 2: is this something that tells us more about our working habits? Well, firstly,

133
00:07:49,960 --> 00:07:51,960
Speaker 2: we're going back to the office more, but also the

134
00:07:52,000 --> 00:07:54,520
Speaker 2: labor market is getting tighter. So Andrea writes, that we

135
00:07:54,600 --> 00:07:57,800
Speaker 2: want to not only show up, but smarten up as well. Now,

136
00:07:57,800 --> 00:07:59,600
Speaker 2: she writes that some of this is seasonal, but the

137
00:07:59,640 --> 00:08:02,600
Speaker 2: item that stand out, including the return of Blazers, have

138
00:08:02,680 --> 00:08:05,720
Speaker 2: seen a spike in mentions by social media influencers as well.

139
00:08:05,720 --> 00:08:08,880
Speaker 2: As Andrea puts it were past peak slob. There's more

140
00:08:09,000 --> 00:08:11,280
Speaker 2: dressing up to be done. To'll find the piece at

141
00:08:11,280 --> 00:08:13,080
Speaker 2: Bloomberg dot com for his lash opinion. We'll put a

142
00:08:13,120 --> 00:08:14,880
Speaker 2: link to it on our podcast show Notes.

143
00:08:15,280 --> 00:08:15,400
Speaker 9: Now.

144
00:08:15,440 --> 00:08:19,080
Speaker 2: The US President is expected in Davos today, despite the

145
00:08:19,120 --> 00:08:21,600
Speaker 2: issues with his plane on the journey. He'll be arriving

146
00:08:21,680 --> 00:08:23,920
Speaker 2: to an event full of business and political leaders who

147
00:08:23,920 --> 00:08:26,640
Speaker 2: want to know how far he'll go and his latest

148
00:08:26,680 --> 00:08:31,000
Speaker 2: campaign against European countries over Greenland. Our chief europe correspondent

149
00:08:31,000 --> 00:08:32,760
Speaker 2: to Oliver Crook, is back with us this morning for

150
00:08:32,800 --> 00:08:34,800
Speaker 2: the latest on this story. Oliver, we talked to you

151
00:08:34,920 --> 00:08:37,400
Speaker 2: yesterday about this as well. But we're counting down now

152
00:08:37,440 --> 00:08:41,240
Speaker 2: to Donald Trump's appearance in Davos. What sort of reception

153
00:08:41,400 --> 00:08:43,440
Speaker 2: is he likely to get given what we heard from

154
00:08:43,480 --> 00:08:46,200
Speaker 2: Emmanuel Macron on from urceulav underline there yesterday.

155
00:08:46,520 --> 00:08:48,160
Speaker 10: Yeah, I mean, I think he really loves to build

156
00:08:48,160 --> 00:08:50,440
Speaker 10: the tension ahead of these kinds of meetings within Europe,

157
00:08:50,440 --> 00:08:52,880
Speaker 10: and of course doing so in part by sharing personal

158
00:08:52,920 --> 00:08:56,120
Speaker 10: text messages from both Mark Routta, the Secretary General of

159
00:08:56,240 --> 00:08:59,920
Speaker 10: NATO before he set off to Europe, and also Ammanuel Macon,

160
00:09:00,240 --> 00:09:02,960
Speaker 10: which gave you some insight into sort of the European

161
00:09:03,000 --> 00:09:05,520
Speaker 10: approach to dealing with Donald Trump. But just to sort

162
00:09:05,520 --> 00:09:08,480
Speaker 10: of recap what we heard from Mersula Vonderline yesterday saying

163
00:09:08,480 --> 00:09:10,800
Speaker 10: that basically a deal is a deal with the United States,

164
00:09:10,840 --> 00:09:13,959
Speaker 10: and that the Europeans will respond in kind if these

165
00:09:13,960 --> 00:09:17,400
Speaker 10: tariffs do go to an effect. On February the first,

166
00:09:17,520 --> 00:09:21,079
Speaker 10: we heard something similar from Emmanuel Macran, who's saying that basically,

167
00:09:21,200 --> 00:09:23,720
Speaker 10: you know, the United States, I mean, is basically a

168
00:09:23,800 --> 00:09:27,240
Speaker 10: neo sort of colonial power at this point, putting pressure

169
00:09:27,320 --> 00:09:30,440
Speaker 10: on Europeans to become vassals of American power, and again

170
00:09:30,559 --> 00:09:33,280
Speaker 10: once again strongly advocating the use of that very strong

171
00:09:33,679 --> 00:09:37,720
Speaker 10: European trade instrument, the anti coercion instrument, which he sort

172
00:09:37,720 --> 00:09:40,280
Speaker 10: of brought up again at Davos yesterday. But as ever,

173
00:09:40,360 --> 00:09:43,000
Speaker 10: I think that the sort of approach for the European

174
00:09:43,080 --> 00:09:45,439
Speaker 10: leaders when it comes to Donald Trump is to not

175
00:09:45,480 --> 00:09:49,199
Speaker 10: be excessively confrontational. You do see a different tone being

176
00:09:49,240 --> 00:09:51,640
Speaker 10: adopted by these leaders in this issue of Greenland, a

177
00:09:51,679 --> 00:09:54,720
Speaker 10: much stronger tone. But again, I think the ambition for

178
00:09:54,760 --> 00:09:56,600
Speaker 10: everybody in the room that will be trying to get

179
00:09:56,600 --> 00:09:58,079
Speaker 10: in front of Donald Trump and try to have these

180
00:09:58,120 --> 00:10:01,040
Speaker 10: conversations will be to try to find diplomatic through a

181
00:10:01,160 --> 00:10:03,480
Speaker 10: try to sort of talk down the situation and try

182
00:10:03,520 --> 00:10:06,080
Speaker 10: to find a way to sort of cut through what

183
00:10:06,160 --> 00:10:09,240
Speaker 10: we've all those very powerful rhetoric we've been hearing over

184
00:10:09,240 --> 00:10:10,079
Speaker 10: the last couple of days.

185
00:10:10,120 --> 00:10:11,440
Speaker 3: I think that's going to be the approach.

186
00:10:11,480 --> 00:10:14,040
Speaker 10: Of course, my con in that text message also suggested

187
00:10:14,160 --> 00:10:17,839
Speaker 10: arranging a G seven meeting in Paris on Thursday after

188
00:10:18,000 --> 00:10:19,960
Speaker 10: the sort of meetings in Davos, So we'll see if

189
00:10:20,000 --> 00:10:22,160
Speaker 10: that sort of cuts through it all. I would say

190
00:10:22,200 --> 00:10:24,319
Speaker 10: that if Emmanu and Macon wanted to cut through in

191
00:10:24,400 --> 00:10:26,080
Speaker 10: his speech, it seems the way that he managed to

192
00:10:26,080 --> 00:10:29,400
Speaker 10: do so the best was with those massive reflective aviators

193
00:10:29,400 --> 00:10:31,000
Speaker 10: he was wearing, because that is what I woke up

194
00:10:31,040 --> 00:10:33,320
Speaker 10: to from everybody from the United States, where the images

195
00:10:33,320 --> 00:10:35,200
Speaker 10: of it Manu and Micon speaking at Davos.

196
00:10:35,760 --> 00:10:35,920
Speaker 3: Yeah.

197
00:10:35,960 --> 00:10:38,000
Speaker 2: Indeed, and of course he'd explained in his speech earlier

198
00:10:38,080 --> 00:10:39,280
Speaker 2: this week, which was the context that a lot of

199
00:10:39,280 --> 00:10:40,959
Speaker 2: people were missing that he had an eye in faction,

200
00:10:41,000 --> 00:10:42,719
Speaker 2: which is why he was wearing the sunglasses.

201
00:10:43,240 --> 00:10:45,760
Speaker 10: And this sort of surveilled this of all this conversation

202
00:10:45,800 --> 00:10:48,199
Speaker 10: we're having about Greenland, to see the images of Immanu

203
00:10:48,240 --> 00:10:50,079
Speaker 10: and my con it's just very interesting.

204
00:10:50,160 --> 00:10:53,080
Speaker 2: Yeah, it's it's quite stark, isn't it. The President seems

205
00:10:53,120 --> 00:10:55,640
Speaker 2: sure before he left that he wasn't going to retaliate

206
00:10:55,679 --> 00:10:58,280
Speaker 2: about this, but thinking and looking ahead to the meeting

207
00:10:58,280 --> 00:11:01,040
Speaker 2: of European leaders as well, how does it look now

208
00:11:01,120 --> 00:11:04,679
Speaker 2: that you won't choose to take the more dramatic option.

209
00:11:05,559 --> 00:11:07,960
Speaker 10: I think that at this point they cannot. They have

210
00:11:08,040 --> 00:11:09,520
Speaker 10: to take some sort of draw the line in the

211
00:11:09,520 --> 00:11:11,480
Speaker 10: sand somewhere. I think it's interesting. We've been hearing a

212
00:11:11,520 --> 00:11:13,680
Speaker 10: lot from the Trump team, whether it was Scott Bess

213
00:11:13,720 --> 00:11:16,520
Speaker 10: and yesterday speaking in Davos, basically again, you know, sort

214
00:11:16,520 --> 00:11:18,319
Speaker 10: of doing the thing that he does quite a bit,

215
00:11:18,360 --> 00:11:20,480
Speaker 10: which is, you know, I think the Europeans interpret as

216
00:11:20,480 --> 00:11:22,640
Speaker 10: a bit of gas lighting, which is basically, why is

217
00:11:22,640 --> 00:11:25,360
Speaker 10: everyone so hysterical and crazy about these tariff threats?

218
00:11:25,360 --> 00:11:27,319
Speaker 3: You know, everybody just relaxed. It'll be fine.

219
00:11:27,600 --> 00:11:29,400
Speaker 10: You know, the only reason it was fine last time

220
00:11:29,720 --> 00:11:31,800
Speaker 10: was because a the United States back down.

221
00:11:31,600 --> 00:11:32,600
Speaker 3: On certain measures.

222
00:11:32,800 --> 00:11:36,160
Speaker 10: But be everybody else except for China and a couple others,

223
00:11:36,200 --> 00:11:39,520
Speaker 10: basically rolled over and conceded to what the United States wanted.

224
00:11:39,559 --> 00:11:41,679
Speaker 10: We also heard from you know, Howard Lutnik writing in

225
00:11:41,720 --> 00:11:44,000
Speaker 10: the pages of the Financial Times saying, you know, there's

226
00:11:44,040 --> 00:11:46,400
Speaker 10: going to be a sort of reasonable outcome to all

227
00:11:46,400 --> 00:11:48,839
Speaker 10: of this. We don't need to worry about this too much.

228
00:11:48,880 --> 00:11:51,000
Speaker 10: But I think for the Europeans, the question is not

229
00:11:51,040 --> 00:11:53,120
Speaker 10: whether or not to retaliate, but is the nature of

230
00:11:53,160 --> 00:11:53,840
Speaker 10: that retaliation.

231
00:11:53,880 --> 00:11:55,679
Speaker 3: This is a debate that you know, we had in the.

232
00:11:55,640 --> 00:11:58,000
Speaker 10: Office yesterday when we were talking about you know, is

233
00:11:58,040 --> 00:12:01,880
Speaker 10: it about inflicting the maximum image onto the United States

234
00:12:01,920 --> 00:12:04,680
Speaker 10: through targeting tech companies and that sort of thing, which

235
00:12:04,679 --> 00:12:08,160
Speaker 10: would obviously escalate things substantially, or for the Europeans, is

236
00:12:08,200 --> 00:12:10,120
Speaker 10: a more just about drawing a line in the sand,

237
00:12:10,280 --> 00:12:12,680
Speaker 10: not appeasing the Trump administration, saying that there is a

238
00:12:12,720 --> 00:12:14,840
Speaker 10: limit to where we can go, but not trying to

239
00:12:14,880 --> 00:12:17,920
Speaker 10: amplify and make things too much worse again. Un Ursula

240
00:12:17,960 --> 00:12:20,640
Speaker 10: vonnerline says that there would be an unflinching response, but

241
00:12:20,679 --> 00:12:23,280
Speaker 10: again a proportional response. So I think that a calibration

242
00:12:23,400 --> 00:12:24,839
Speaker 10: of that response is really what's going to be the

243
00:12:24,840 --> 00:12:26,080
Speaker 10: focus for the European leaders.

244
00:12:26,720 --> 00:12:29,319
Speaker 2: Okay Oi a crow Cartif you're a correspondent, thank you.

245
00:12:29,920 --> 00:12:32,800
Speaker 2: Stay with us. More from Bloomberg Daybreak Europe coming up

246
00:12:33,080 --> 00:12:36,600
Speaker 2: after this. The Trump's tower of threats over Greenland rattled

247
00:12:36,720 --> 00:12:39,840
Speaker 2: markets too. The volatility does seem to be easing today.

248
00:12:39,920 --> 00:12:43,680
Speaker 2: Japanese government bonds are also rebounding after yesterday's dramatics sell off.

249
00:12:43,720 --> 00:12:46,440
Speaker 2: There Garfield Reinalds, who leads our Market's life team in Asia,

250
00:12:46,520 --> 00:12:49,160
Speaker 2: joins us now for more. Garfield, in terms of the

251
00:12:49,200 --> 00:12:52,520
Speaker 2: broad market sentiment, what is the picture today after the

252
00:12:52,520 --> 00:12:53,720
Speaker 2: big sale off yesterday?

253
00:12:55,000 --> 00:12:58,240
Speaker 1: Well, I think today the markets are very much warning

254
00:12:58,320 --> 00:13:02,200
Speaker 1: to see whether there will be that easing down in

255
00:13:02,480 --> 00:13:05,640
Speaker 1: the tone of things between Donald Trump on the one

256
00:13:05,640 --> 00:13:10,000
Speaker 1: head and Europe on the other. Maybe at least some

257
00:13:10,160 --> 00:13:14,320
Speaker 1: investors were heartened by Trump in amongst everything else, that

258
00:13:14,360 --> 00:13:18,080
Speaker 1: he was saying that he didn't think that the trip

259
00:13:18,120 --> 00:13:20,800
Speaker 1: would go badly, and he didn't think that the European

260
00:13:20,840 --> 00:13:27,000
Speaker 1: trade deal would be in trouble, so that by his

261
00:13:27,080 --> 00:13:30,320
Speaker 1: standards may be seen as somewhat conciliatory or at least

262
00:13:30,320 --> 00:13:33,640
Speaker 1: open to the idea that Europe will be somewhat conciliatory.

263
00:13:34,080 --> 00:13:39,040
Speaker 1: So that's allowed investors to at least you hold off

264
00:13:39,040 --> 00:13:43,400
Speaker 1: on things. We've seen Japanese government bond yields come down.

265
00:13:43,640 --> 00:13:47,520
Speaker 1: The only thing that's really been moving to underscore that

266
00:13:47,559 --> 00:13:52,240
Speaker 1: there remains plenty of nervousness is the huge surge in

267
00:13:52,280 --> 00:13:56,240
Speaker 1: gold today. Yes, that's got something to do with Poland

268
00:13:56,800 --> 00:13:59,280
Speaker 1: saying it's going to go on buying gold, but that

269
00:13:59,440 --> 00:14:01,520
Speaker 1: was mostly known in a lot of ways. It's just

270
00:14:01,559 --> 00:14:05,480
Speaker 1: the scope of it. So that elevated level for gold

271
00:14:06,600 --> 00:14:10,240
Speaker 1: is a reminder that markets are still on edge. They're

272
00:14:10,280 --> 00:14:12,600
Speaker 1: just not so on edge as they were yesterday.

273
00:14:13,320 --> 00:14:16,319
Speaker 2: And thinking about Japan then you know a massive sell

274
00:14:16,320 --> 00:14:19,160
Speaker 2: off and government bonds there yesterday, the Finance minister appealing

275
00:14:19,240 --> 00:14:20,840
Speaker 2: for cam our markets listening.

276
00:14:22,520 --> 00:14:25,720
Speaker 1: It's a little bit too early to tell, really. Yes,

277
00:14:26,600 --> 00:14:29,640
Speaker 1: bond yields have come down in some ways, they've come

278
00:14:29,680 --> 00:14:33,240
Speaker 1: down almost too rapidly. Yeah, the forty year yield was

279
00:14:33,280 --> 00:14:35,760
Speaker 1: down at one stage by about twenty basis points. That's

280
00:14:35,800 --> 00:14:40,760
Speaker 1: after it jumped thirty two basis points yesterday, So that's

281
00:14:40,800 --> 00:14:45,840
Speaker 1: a lot of volatility, which in general speaks to your

282
00:14:45,880 --> 00:14:50,600
Speaker 1: plenty of ongoing unease. After all, the sort of you know,

283
00:14:50,640 --> 00:14:54,600
Speaker 1: investors who buy and what to hold longer end Japanese

284
00:14:54,680 --> 00:14:57,720
Speaker 1: government bonds don't want to see them jumping around either

285
00:14:57,760 --> 00:15:01,040
Speaker 1: way by twenty basis points or more in a single day.

286
00:15:01,320 --> 00:15:04,600
Speaker 1: So that's going to go on being some monies, and

287
00:15:04,760 --> 00:15:06,320
Speaker 1: I think that's going to lin you through at least

288
00:15:06,360 --> 00:15:09,240
Speaker 1: until we have a forty year auction that's coming up

289
00:15:09,280 --> 00:15:12,720
Speaker 1: next week in Japan. That's going to be another your

290
00:15:12,840 --> 00:15:16,080
Speaker 1: day that were we being marked in the calendars for

291
00:15:16,160 --> 00:15:18,920
Speaker 1: not just Tokyo traders, but for the rest of the

292
00:15:18,960 --> 00:15:23,400
Speaker 1: world because the issue of how high Japanese government bond

293
00:15:23,480 --> 00:15:26,960
Speaker 1: yields can go and how rapidly is going to haunt

294
00:15:27,000 --> 00:15:29,280
Speaker 1: global markets for most of this year.

295
00:15:29,360 --> 00:15:34,520
Speaker 2: Really, this is Bloomberg Daybreak Europe, your morning brief on

296
00:15:34,600 --> 00:15:37,080
Speaker 2: this story is making news from London to Wall Streets

297
00:15:37,200 --> 00:15:37,760
Speaker 2: and beyond.

298
00:15:38,080 --> 00:15:41,280
Speaker 9: Look for us on your podcast feed every morning on Apple,

299
00:15:41,440 --> 00:15:44,240
Speaker 9: Spotify and anywhere else you get your podcasts.

300
00:15:44,280 --> 00:15:47,320
Speaker 2: You can also listen live each morning on London DAB Radio.

301
00:15:47,360 --> 00:15:50,000
Speaker 2: The Bloomberg Business App and Bloomberg dot Com.

302
00:15:50,080 --> 00:15:52,880
Speaker 9: Our flagship New York station is also available on your

303
00:15:52,880 --> 00:15:57,600
Speaker 9: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

304
00:15:57,840 --> 00:15:59,160
Speaker 9: I'm Caroline Hepka and.

305
00:15:59,080 --> 00:16:01,760
Speaker 2: I'm Stephen Carroll. On us again tomorrow morning for all

306
00:16:01,760 --> 00:16:04,200
Speaker 2: the news you need to start your day right here

307
00:16:04,240 --> 00:16:07,440
Speaker 2: on Bloomberg Daybreak Europe