Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the Blue Big Day Baqut podcast. Good morning,
Speaker 2: It's Thursday, the sixth of November. I'm Caroline Hepkitt in
Speaker 2: London and.
Speaker 3: I'm Stephen Caroline Brussels. Coming up today, Markets expect the
Speaker 3: Bank of England to hold interest rates steady, as British
Speaker 3: businesses warned the Chancellor Rachel Reeves against death by a
Speaker 3: thousand taxes.
Speaker 2: Donald Trump's global tariffs face a barrage of skeptical questions
Speaker 2: from the US Supreme Court.
Speaker 3: Plus reassessing the business climate. In an exclusive interview, the
Speaker 3: EU's Economy Commissioner, Valdas Dombrovskis tells us the Block is
Speaker 3: listening to international concerns over its ESG rules.
Speaker 2: Let's start with the roundup of our top stories.
Speaker 3: The Bank of England is likely to keep interest rates
Speaker 3: unchanged today in what's expected to be a closely contested decision.
Speaker 3: Markets and economists expect the UK Central Bank to hold
Speaker 3: its benchmark rate at four percent. With this six to
Speaker 3: three split on the Monetary Policy Committee. The most common
Speaker 3: response in Bloomberg survey that would slow the once a
Speaker 3: quarter pace of cut that has maintained since August twenty
Speaker 3: twenty four. Here's our chief UK economist, Dan Hansen.
Speaker 4: I don't think they will cut, but I think it's
Speaker 4: going to be a tight decision between a cut and
Speaker 4: a hold. I think the bank will want to know
Speaker 4: what exactly is in the budget, and they don't know
Speaker 4: that yet. They can assume, as we've all been assuming
Speaker 4: for the past, coming on for six months now, what
Speaker 4: may or may not be in the budget, and they
Speaker 4: can obviously make assumptions, but they'll want to know. I
Speaker 4: also think, you know, bigger picture, inflation's nearly four percent
Speaker 4: is quite a difficult backdrop for them to cut interest rates.
Speaker 4: It doesn't feel like there's any need to.
Speaker 3: Rush Dan Hanson from Bloomberg Economics there as the BOE
Speaker 3: today also rolls out a new look monetary Policy Report
Speaker 3: and minutes that for the first time, will show each
Speaker 3: of the nine MPC policy makers setting out their views individually.
Speaker 3: We'll have the decision live here on Bloomberg Radio at
Speaker 3: twelve pm in London, followed by special coverage of the
Speaker 3: press conference led by Governor Andrew Bailey half an hour later.
Speaker 2: Well, the UK's biggest business lobby is warning against tax
Speaker 2: hikes in the upcoming budget. Instead, the group is calling
Speaker 2: for measures including improving skills and developing new technology. Bluebag's
Speaker 2: teaba Adebayo has the story.
Speaker 5: Death by a thousand taxes. That's the fate which could
Speaker 5: await UK companies if the Chancellor hikes smaller levies. According
Speaker 5: to the Confederation of British Industry CBI, proposals to boost
Speaker 5: growth include first tracking infrastructure projects, lowering energy costs and
Speaker 5: promoting exports. The caution comes after Rachel Reeves set the
Speaker 5: stage for tax hikes in a pre budget speechless week
Speaker 5: as she seeks to plug the fiscal hole. Lower productivity
Speaker 5: estimates from the Office for Budget Responsibility could mean a
Speaker 5: twenty billion pound hit to the government after the body
Speaker 5: was too optimistic about the economy in recent years. The
Speaker 5: situation could leave the Treasury needing to find as much
Speaker 5: as thirty five billion pounds just to restore the slim
Speaker 5: headroom they had last budget. But despite the downgrade, reports
Speaker 5: in the Financial Times say the Chancellor will spare British
Speaker 5: banks from bigger tax bills, making clear she wants the
Speaker 5: sector to remain competitive in London to had a buyer.
Speaker 2: Bloomberg Radio the.
Speaker 3: US Supreme Court appeared skeptical of President Trump's signature global
Speaker 3: tariff regime, as Justice has questioned the use of an
Speaker 3: emergency powers law to collect tens of billions of dollars
Speaker 3: a month. The court hinted it was ready to put
Speaker 3: significant limits on tariffs for the first time since Trump
Speaker 3: took office in January. Hours after the hearing, the President
Speaker 3: gave his reaction on Fox News.
Speaker 6: I heard the court case went well today, but I
Speaker 6: just heard that a little while ago, because, as you know,
Speaker 6: it's just two hours ago that they finished up. But
Speaker 6: I will say this, it would be devastating for our
Speaker 6: country if we lost their.
Speaker 3: Devastating, President Trump, speaking there on Fox News a special
Speaker 3: report with Brett Bayer. Now, ruling isn't expected for several weeks,
Speaker 3: but a decision against Trump could force refunds and remove
Speaker 3: a major burden on US importer is blunting the effect
Speaker 3: of tariffs as a tool against trading partners well.
Speaker 2: President Trump is hosting a summit with five Central Asian
Speaker 2: countries as Washington steps up its push for influence in
Speaker 2: the mineral rich region where China and Russia have long
Speaker 2: held sway. It comes as the EU's Economy Commissioner has
Speaker 2: told Bloomberg Radio the Bloc is now offering technology and
Speaker 2: financing to other countries to develop sources of those key minerals.
Speaker 2: Valdis don Bovski says that China's twelve month suspension of
Speaker 2: rare earth export curbs by his time, but it doesn't
Speaker 2: resolve the issue.
Speaker 7: In a sense. It's address as short term concerns, but
Speaker 7: it also shows vulnerability which we are facing in terms
Speaker 7: of supplies and zerofour We also must work towards diversification.
Speaker 2: Of Also, European Economy Commissioner of Eldis don Boskis. He
Speaker 2: went on to also signal that the EU is willing
Speaker 2: to accommodate international concerns about its ESG rules as the
Speaker 2: Bloc fields threats from the US and cutter.
Speaker 3: In videos, CEO Janson Hwang has warned that Beijing is
Speaker 3: currently on track to take the lead in artificial intelligence.
Speaker 1: Bloomberg's Euan Parts has more China is going to win
Speaker 1: the AI race. Those are the start words of the
Speaker 1: boss of the world's most valuable company. Speaking to the
Speaker 1: Financial Times and Videos, Jensen Wang says that the West,
Speaker 1: including the US and UK, was being held back by
Speaker 1: what he called cynicism. He says that lower energy costs
Speaker 1: and looser regulations are adding to Beijing's advantages. Wang's remarks
Speaker 1: come after the Trump administration maintained its ban on in
Speaker 1: video selling its most advanced chips to China following the
Speaker 1: Trumps summit last week in London, i'm un pots Bloomberg
Speaker 1: Radio Now.
Speaker 2: The US plans to cut domestic flight capacity by ten
Speaker 2: percent at forty major airport across the country if the
Speaker 2: government shut down continues. The Federal Aviation Administration made the
Speaker 2: decision to ease pressure on air traffic controllers, who have
Speaker 2: been reporting staff shortages and issues with fatigue. Transportation Secutory
Speaker 2: Sean Duffy says the situation is fluid, but safety is
Speaker 2: the priority.
Speaker 8: I anticipate there will be additional disruptions, There'll be frustration.
Speaker 8: We are working with the airlines, They're going to work
Speaker 8: with passengers, but in the end, our sole role is
Speaker 8: to make sure that we keep this airspace as safe
Speaker 8: as possible.
Speaker 2: Duffy added that any further restrictions on flights will be
Speaker 2: determined by data. The FAA said that flight reductions are
Speaker 2: expected to be staggered heading into the weekend, and international
Speaker 2: routes won't be affected.
Speaker 3: Those are your top stories on the markets. We are
Speaker 3: seeing somewhat of a rebound and Asian stocks today, dip
Speaker 3: bio stepping in the mscis specific index up by one
Speaker 3: point one percent, the NICKA in Tokyo one point four
Speaker 3: percent higher, That Hangs Hangs up by one point seven percent.
Speaker 3: European stock future is pretty flat at the moment. On
Speaker 3: Wall Street. They're slightly lower two tents lower for Nasdaq
Speaker 3: futures after we saw that index rebound by seven tenths
Speaker 3: of one percent yesterday. Elsewhere and markets, we're also keeping
Speaker 3: an eye on gold prices up two tents at three
Speaker 3: nine hundred and eighty six dollars at troyats.
Speaker 5: Well.
Speaker 2: In a moment, we'll look ahead to the Bank of
Speaker 2: England's rate decision and analyze what emerged from the US
Speaker 2: Supreme Court hearing over Donald Trump's tariffs. Plus, we're also
Speaker 2: going to bring you the special interview that Stephen has
Speaker 2: done with the EU Economy Commission of Aldis Dombrovskis, who's
Speaker 2: been speaking to us about Ukraine trade with China and
Speaker 2: the pressure on the EU to water down its climate rules. Stephen,
Speaker 2: I saw some nice photographs of US city, next of
Speaker 2: Eldis Dombrovskis in the Brussels studio. You're getting to know
Speaker 2: the commissioners now, Yeah, I'm.
Speaker 3: Just making my way around, you know, I have to
Speaker 3: meet them all eventually. It's a lot of handshaking to do,
Speaker 3: and you've got twenty seven of them to meet Caroline
Speaker 3: as well. Before we get into those stories as well,
Speaker 3: I wanted to mention another story that we've been reading
Speaker 3: this morning. For perhaps you know you're looking to make
Speaker 3: a new investment, and why not buy a sports team,
Speaker 3: or at least part of one. This is something our
Speaker 3: colleague Ben Stubbles has been reporting on that he covers
Speaker 3: the ultra rich, and he says that super rich clients
Speaker 3: at JP Morgan are now being increasingly attracted to invest
Speaker 3: in teams because they see it as something that can
Speaker 3: provide them with decent returns. It's not just a passion
Speaker 3: project anymore. According to their figures, twenty percent of one
Speaker 3: hundred and eleven billionaire families that were surveyed by them
Speaker 3: now and controlling stakes in sports teams. That's up from
Speaker 3: six percent three years ago as well. So an increasing
Speaker 3: number of interest institutional investors are also getting in on
Speaker 3: this as well.
Speaker 2: Yeah, I think it's really fascinating. I mean just look
Speaker 2: at in the UK, people like Jim Ratcliffe are taking
Speaker 2: that controlling stake in Majesty United only last year. I
Speaker 2: mean that was one and a half billion dollars worth
Speaker 2: to buy about. Well, yeah, it's a team that has
Speaker 2: struggled somewhat, but no, I think it's very interesting that. Yeah,
Speaker 2: forget art, you know, cars or why maybe now it's
Speaker 2: at about the sports team.
Speaker 3: I feel like this is real life ted Lassa was
Speaker 3: happening in front of us, so familiar with the TV
Speaker 3: series as anyway, let's turn to the Bank of England
Speaker 3: decision today. Now expected to hold interest rates steady. Policymakers
Speaker 3: likely to be cautious given the budget looming in three
Speaker 3: weeks time, despite assurances in the Chancellor that she won't
Speaker 3: add to inflation. Our UK correspondent Lizzie Burden is with
Speaker 3: us for more this morning. Lizzie set us up then
Speaker 3: for today's decision.
Speaker 9: Well, Stephen, as you say, the expectation is that they're
Speaker 9: going to hold rates at four percent and that would
Speaker 9: break with the quarterly cadence of rate cuts that they've
Speaker 9: been in since last August, and it would break with
Speaker 9: the Fed. But do be on for a surprise cut today.
Speaker 9: It's what Nomura, Barclays and Goldman Sachs all see. And
Speaker 9: even if they do hold rates, it could be a
Speaker 9: really tight vote split. It could hinge on the governor.
Speaker 9: Even if most economists see a six' three. Split why
Speaker 9: is it going to be so? Tight, well they're inching
Speaker 9: towards neutral, rates the race that neither constrains nor stimulates the,
Speaker 9: economy and we just don't know where that. Is most
Speaker 9: economists think it's three. Percent but as we get closer and,
Speaker 9: closer the more carefully and slowly The Monetary Policy committee
Speaker 9: is likely to want to. Move the other elephant in
Speaker 9: the room, here of, course is the budget On november
Speaker 9: the twenty. Sixth then, yes The Chancellor Rachel reeves promised
Speaker 9: this week that it's going to be, disinflationary BUT i
Speaker 9: doubt that The Military Policy committee is going to want
Speaker 9: to vote as if it will. Be they'll want to
Speaker 9: see the policies for. Themselves and indeed it means that
Speaker 9: the updated forecast today are somewhat. Moot the expectation is
Speaker 9: that the inflation outlook's going to be downgraded for this
Speaker 9: year and next compared to The august, projection and that
Speaker 9: the growth and unemployment outlooks are going to stay the.
Speaker 9: Same but we need to take that with a pinch of.
Speaker 9: Salt and we don't know what's in the budget. Yet
Speaker 9: But i'm really interested to hear what the governor has
Speaker 9: to say about The chancellor and her. Budget remember On
Speaker 9: tuesday she had some shots to fire at THE boe
Speaker 9: for having rates at four. Percent she says it's straining business.
Speaker 9: Borrowing some have said that's a bit trum. Pesque SO
Speaker 9: i wonder What Andrew bailey has to say about.
Speaker 2: That, yeah so what will the press conference be focused?
Speaker 9: On, well we want to know when the next cut is.
Speaker 9: Coming if it isn't, today how long will this pause?
Speaker 9: Be is it next.
Speaker 2: Cut coming In? December and for.
Speaker 9: Clues about, That i'm really interested how the governor characterizes
Speaker 9: that latest inflation reading three point eight. Percent it's less
Speaker 9: than The bank Of england had, forecast it's less than
Speaker 9: consensus forecast, was but it's still nearly twice THE boees.
Speaker 9: Target how do they talk about the labor market the
Speaker 9: last time they had a, meeting there were lots of,
Speaker 9: warnings hawkish hints about food price, inflation inflation. Expectations if
Speaker 9: the communications Today carolina are very, dubbish or indeed if
Speaker 9: they cut we could see this continued out performance for
Speaker 9: guilts that we saw all Through, october and one dollar
Speaker 9: thirty really is the key level for the pound that
Speaker 9: we need to.
Speaker 3: Watch, lizzie you mentioned The chancellor's comments in terms of
Speaker 3: The bank Of england's rate where it is? Now is
Speaker 3: it a two way street from Thread Needle street To?
Speaker 3: Westminster are there signals that could come from The bank
Speaker 3: Of england that might be helpful or perhaps hindrance To
Speaker 3: Rachel reeves as we're counting down to the, Budget.
Speaker 9: Well Rachel reeves could be the biggest beneficiary from what
Speaker 9: The bank Of england. Does if the most optimistic forecasts
Speaker 9: are right and THE boe cuts rates to three percent
Speaker 9: eventually she could bank around ten billion pounds at next
Speaker 9: year's budget in lower borrowing costs when compared to the
Speaker 9: three point eight percent inter straight floor that's forecast by
Speaker 9: The office For Budget, responsibility the fiscal watchdog In, March
Speaker 9: and so she really needs The boe to cut, rates
Speaker 9: and that's WHY i reckon that her speech On, Tuesday
Speaker 9: yes was aimed a bit at, Voters, yes was aimed
Speaker 9: a bit at bond, markets but the real target audience
Speaker 9: was across the road FROM us Thread Needle, street The
Speaker 9: bank Of.
Speaker 2: England, lizzie thank you so much for being with, us
Speaker 2: so we look forward to the decision from The bank Of.
Speaker 2: England that is OUR uk, Correspondent.
Speaker 3: Lizzibuden now THE Us Supreme court has hinted it's ready
Speaker 3: to put limits On President Donald trump's power to impose
Speaker 3: sweeping global. Tariffs the signals came during a three hour hearing,
Speaker 3: yesterday although ruling isn't expected for several. Weeks let's bring
Speaker 3: in Our chiefhasor Correspondent Rosalind matheson for more on this.
Speaker 3: Ross what was said then during this hearing and why
Speaker 3: is it being interpreted as potentially being bad news For Donald.
Speaker 10: Trump, well as you were saying, that the court did
Speaker 10: appear a bit skeptical really Of Donald trump's tariff agenda
Speaker 10: and his approach to imposing many of these tariffs around the,
Speaker 10: world and people were passing that for clues as to
Speaker 10: how they might issue their final ruling likely before the
Speaker 10: end of the, year and the feeling that The court
Speaker 10: is edging towards putting some limits On Donald. Trump that's
Speaker 10: because you did, have you, know across the, divide skepticism coming,
Speaker 10: in including from some of the more supportive members of the,
Speaker 10: court you would, say potentially For Donald trump's, agenda and
Speaker 10: the more conservative. Judges you had The Chief Justice Don,
Speaker 10: roberts you, know he called the tariffs an imposition taxes On.
Speaker 10: Americans you had A trump, Appointee Amy Cony. Barrett she
Speaker 10: was asking pretty probing, questions albeit of both, sides but
Speaker 10: she wasn't holding, back and she was asking how refunds
Speaker 10: would work if the tariffs were to be, invalidating saying
Speaker 10: she felt it could be quite a. Mess and so
Speaker 10: you had really some fairly hard questioning coming from both
Speaker 10: sides of the. Aisle it's not surprising to see that
Speaker 10: coming from the more liberal, judges but to see it
Speaker 10: from the conservative judges also just raising again the expectation
Speaker 10: that perhaps the, court in this, case The Supreme, court
Speaker 10: might decide to impose some limits On trump's. Agenda.
Speaker 2: Yeah, ABSOLUTELY i mean the questioning the hearing last is
Speaker 2: something like three hours if the court were to rule
Speaker 2: That trump has overstepped in terms of his authority and
Speaker 2: imposing these global, tariffs what would that actually. Mean, well
Speaker 2: that's the big.
Speaker 10: Question and, really you, know either, way you're going to
Speaker 10: see a lot of the uncertainty continue around tariffs And
Speaker 10: Donald trump's approach and the reality for companies and countries,
Speaker 10: alike because even if the court does go in the
Speaker 10: direction of imposing some, limits there are other, leavers arguably
Speaker 10: At Donald trump's, disposal that he can turn towards instead
Speaker 10: to try and keep the tariff regime. Going so there's
Speaker 10: the question of whether he uses other mechanisms to try
Speaker 10: and keep tariffs in.
Speaker 2: Place or at least a part of.
Speaker 10: It there's a question of what do you do if
Speaker 10: you've already been hit by tariff's and a company paying
Speaker 10: Those can you get? Restitution can you essentially get a?
Speaker 10: Refund and it's really not that easy for that to.
Speaker 10: HAPPEN i, mean it's basically paper checks and the government
Speaker 10: would have to be inclined to start issuing. Them you,
Speaker 10: know some of our reporters in THE us talk to
Speaker 10: some company owners who is actually, said we've written this.
Speaker 10: Off you, know this is a sunk. Cost we're not
Speaker 10: going to get this money back either, way even if
Speaker 10: the court does rule in our. Favor so the reality
Speaker 10: of whether you, know companies get refunds or others get
Speaker 10: refunds if the court rules in that direction is very very.
Speaker 10: Unclear it could be an, impact of, course on countries
Speaker 10: that are still negotiating trade deals with THE. Us did
Speaker 10: they look at this and, say, well hang, On perhaps
Speaker 10: the ball is a little bit in our court in
Speaker 10: the way that we negotiate or the kinds of things
Speaker 10: we're willing to agree on as part of. It so
Speaker 10: there's sort of three tiers potentially of impact, there depending
Speaker 10: on which way the court.
Speaker 3: Goes we're very interested to see when we do get that,
Speaker 3: ruling which way the justices do decide to. Lean another
Speaker 3: strand of this trade, story, though we've been talking about
Speaker 3: the rare earth curves From china and that has meant
Speaker 3: for supplies of these critical. Minerals Donald trump's meeting representatives
Speaker 3: from Five Central asian countries as a global race for natural?
Speaker 3: Resources hearts up what should we be expecting from this?
Speaker 3: Meeting AND i suppose how does it fit into efforts
Speaker 3: that others are making to try and woo mineral rich
Speaker 3: countries to secure.
Speaker 2: Supplies, well that's.
Speaker 10: Right everybody's racing for us these, days including THE, us
Speaker 10: and Certainly Donald trump has made it a key part
Speaker 10: of a lot of his negotiations with countries around the,
Speaker 10: world including his trade. Negotiations what are you willing to
Speaker 10: give us in terms of rare? Earth and he's hosting this,
Speaker 10: summit as you, say of these five, countries it'll be
Speaker 10: interesting to see it happen at The White. House it
Speaker 10: gives it that extra level of prestige potentially for these
Speaker 10: countries and these. Leaders but arguably he's doing so also
Speaker 10: because he's wanting to hear from them what the relationship
Speaker 10: with THE us is going to be and whether THE
Speaker 10: us can get access to some of the rare earths
Speaker 10: or the critical minerals that are residing in these. Countries
Speaker 10: but as you, say he's got some competition there because
Speaker 10: this is an area that has long been the, domain
Speaker 10: arguably Of china And russia and rivalry Between china And
Speaker 10: russia in that, region and some of the countries have
Speaker 10: been concerned Since russia's invasion Of ukraine of being sides
Speaker 10: wiped by.
Speaker 2: Sanctions so they're.
Speaker 10: Not necessarily all In russia's corner at the, moment But
Speaker 10: china is a very big presence there, also and even
Speaker 10: THE eu is looking to diversify and open conversations. There
Speaker 10: so there's quite a bit of competition in this region
Speaker 10: between all those powers for access to rare. Earth and
Speaker 10: perhaps that's some leverage for these countries in terms of
Speaker 10: whom or to whom they decide to ship these things.
Speaker 2: Too, yeah absolutely is huge, question isn't it? Rare thank
Speaker 2: you so Much rolis for being with. Us that Is
Speaker 2: bloomberg's Chief asia correspondent was in, matheson thank you stay with.
Speaker 2: Us more From Bloomberg daybaqube coming up after.
Speaker 5: This.
Speaker 3: Well that global race for raw materials are particularly rare earth,
Speaker 3: minerals is a key part of the Conversation i've been
Speaker 3: having with the E's Economy, Commissioner Valdostan. Brovskis he joined
Speaker 3: me in Our brussels studio to talk about wide range of,
Speaker 3: issues including the push from THE us And katar for
Speaker 3: THE eu to water down some of its climate. Rules
Speaker 3: my conversation With Valdestan brovskis began With ukraine and The
Speaker 3: European commission's progress on a plan to use Frozen russian
Speaker 3: assets to Support.
Speaker 7: Kiev So European consul tasks The commission now to work
Speaker 7: on a funding, Options so that's why we're currently. Preparing
Speaker 7: but also we held made clear that we see this
Speaker 7: reparation loan still as a main and most feasible, options
Speaker 7: so we continue also the technical work on preparation on
Speaker 7: reparations a, loan also engagement With belgium authorities concerning the
Speaker 7: guarantees which they need in a sense to agree to
Speaker 7: this reparation. Loan but in a sense this is a
Speaker 7: proposal which addresses many. Issues first of, all they are
Speaker 7: very sizeable funding Needs ukraine is, facing SO imf is
Speaker 7: putting it at sixty billion dollars for the next two,
Speaker 7: years and that's without military, support which comes in a
Speaker 7: similar order of. Magnitude and also A memphi is concerned
Speaker 7: about depth sustainability In, ukraine so we cannot just continue
Speaker 7: with giving. Loans obviously grants is an, option but a
Speaker 7: question Whether member states would agree to provide grants on
Speaker 7: that scale for this reparation, loan Which ukraine would only
Speaker 7: need to repay Once russia pays reparation is a good
Speaker 7: option because it Addresses ukraine's funding, needs it does not
Speaker 7: create problems with depth sustainability In, ukraine and it falls
Speaker 7: short of confiscation Of russian, assets which as we know
Speaker 7: is says a step too far for a number of member.
Speaker 3: States what sort of engagements have you had With belgium
Speaker 3: SINCE fas meeting and have you had any indication that
Speaker 3: they are being reassured by the proposals that The commission is.
Speaker 7: Developing we continue working on this in a, sense it's
Speaker 7: clear understunderstanding is there also On commission side that we
Speaker 7: need to be serious about those concerns and we need
Speaker 7: to find a good way to.
Speaker 3: Otherism let's turned to some of the other major challenges
Speaker 3: facing THE eu economy as. Well The e's been negotiating
Speaker 3: With china over access to. Rarer it's after deal that
Speaker 3: we saw signed between THE us And beijing to export.
Speaker 3: Curves you said you've seen positive signals From china coming
Speaker 3: on those. Measures what more can you tell us about those?
Speaker 7: Signals, Well china basically agreed now to suspend those expert
Speaker 7: controls or postpone those xpont controls by one, year so
Speaker 7: that obviously give us more time for engagement and addressing
Speaker 7: this issue in a forward looking. Way so there is
Speaker 7: in sense positive short term. Developments but obviously we must
Speaker 7: keep in mind that we need to work on diversification
Speaker 7: of our supply chains because, currently as Concerns rarere's critical,
Speaker 7: minerals many of those supply chains are eighty ninety more
Speaker 7: than ninety percent dominated By. China, therefore we must work
Speaker 7: on diversification because that's how we achieve resilience of. Supplies
Speaker 7: that why we're accelerating work on our own materials. Strategy
Speaker 7: so that's Why i'm engaging in raw materials partnership with
Speaker 7: a number of countries around the, world and also coordinating
Speaker 7: this approach with like minded, partners including in a framework
Speaker 7: OF g.
Speaker 3: Seven so are you satisfied that the supply chain for
Speaker 3: now is stable while that exemption has been. Granted i'm
Speaker 3: just wondering about the broader risk to The european economics from.
Speaker 3: This we've had warnings and the likes Of, volkswagen for,
Speaker 3: example about the IMPACT i could have on their supplies upcoming.
Speaker 7: Too in a, sense it addresses short term, concerns but
Speaker 7: it also shows vulnerability which we are facing in terms
Speaker 7: of the supplies and therefore we also must work towards
Speaker 7: diversification of those.
Speaker 3: Supplies where do you look for?
Speaker 7: That, well, actually ALL i would say to put simple
Speaker 7: around the. World we have already engaged in raw material
Speaker 7: partnerships with various countries as diverse From canada To bakistan
Speaker 7: and then many many. Others but the issue right now
Speaker 7: is also to get more practical and more tangible to
Speaker 7: start actually developing actual projects on the. Ground Where as
Speaker 7: a model of partnership we are offering resurfage countries is
Speaker 7: that THE eu is ready to provide, technology know, how
Speaker 7: financing and also help those countries to increase value added
Speaker 7: they are getting from their raw. Materials so it's not
Speaker 7: only about extraction but also also developing processing capacities in those.
Speaker 7: Countries so looking for mutually beneficial.
Speaker 3: Solutions on the question of the Corporate Due diligence regulations
Speaker 3: that C S, triplt which is something there debate on
Speaker 3: going about with The European, parliament there's been a warning
Speaker 3: From katar's energy minister that If europe doesn't look at
Speaker 3: how they can water down or cancel this, regulation they'll
Speaker 3: stop delivering LER g To. Europe how worried are you
Speaker 3: about risks like that and the pressure that's being put
Speaker 3: on these sort of regulations.
Speaker 7: Well as REGARDS c STRIPLE. D, indeed there are many
Speaker 7: businesses boss in THE eu voicing serious, concerns but also
Speaker 7: many partners outside THE, eu And qatari is just one.
Speaker 7: Example we have heard from many other countries and businesses
Speaker 7: on those countries on the. Concerns but that's, Why but
Speaker 7: that's why A C s TRIPLE d was part of
Speaker 7: our first, omnibus where we are actually simplifying it quite
Speaker 7: substantially in including the question on reducing the scope so
Speaker 7: which companies will be covered BY c STRIPLE, d making
Speaker 7: requirements more, proportionate like obligation to follow only direct business,
Speaker 7: partners not all the value change up and, down obligation
Speaker 7: to do it once per five, years not every, year
Speaker 7: and and and so. On so there are many tangible
Speaker 7: improvements and. Simplifications what would be now important that the
Speaker 7: legislative process moves forward and so simplifications actually become a.
Speaker 3: Reality but is it a worry that you, KNOW l
Speaker 3: AND g supplies could be affected by these?
Speaker 7: Changes in a, sense there are two, Elements so one
Speaker 7: obviously As European. Union we retain our regulatory autonomy and
Speaker 7: our regular businesses which are doing business and are active In.
Speaker 7: Europe on other, hand of, course we also need to
Speaker 7: listen and acknowledge concerns which various partners around the world
Speaker 7: are having and reflect on the. Implications so that was.
Speaker 3: Wilder stan bravsk is THE Eases commissioner For economy And
Speaker 3: productivity and also in charge of, simplification which is part
Speaker 3: of that effort that we're seeing changes being made some
Speaker 3: KEY eu rules as, well speaking to me IN Oar
Speaker 3: brussels studio as. Well, look it's interesting to reflect on
Speaker 3: that debate that's playing out OVER eu climate rules as.
Speaker 3: Well the, criticism of, course and this is particularly coming
Speaker 3: from parliamentarians in The European, parliament is that the only
Speaker 3: signs of simplification that people are seeing is in weakening
Speaker 3: of some of the climate. Rules you've had a pushback
Speaker 3: of the implementation, date for example on the anti deforestation,
Speaker 3: rules debate over the changing of the thresholds of what
Speaker 3: size of companies would have to report under some of
Speaker 3: these due diligence regulations as. Well so interesting to hear
Speaker 3: From valdestanbrovskis that they are listening and acknowledging the concerns
Speaker 3: coming from outside of THE eu as, well and in
Speaker 3: particular the comments that we've had from THE us and From.
Speaker 2: KATAR i thought what was the most interesting was the
Speaker 2: Rare earth elements that you discussed with Dom. POVSKISS i,
Speaker 2: Mean i'm totally fascinated by. This china has become so
Speaker 2: dominant in this. Area there are no Rare earth minds
Speaker 2: anywhere In. Europe it's very difficult to mine these. ELEMENTS
Speaker 2: i mean we call them Rare, earth so actually not
Speaker 2: that rare that they're really difficult to. Mine there are
Speaker 2: seventeen of, them And china's imposed these. Controls, obviously in
Speaker 2: recent weeks they've agreed this one year pause with THE.
Speaker 2: Us but it is notable that THE Us Treasury Secretary
Speaker 2: Scott besson's been talking about how THE us is going
Speaker 2: to go at warp speed over the next one or
Speaker 2: two years And i'll just try to Break china's hold
Speaker 2: over THE us in this particular. Area but you, Know
Speaker 2: europe has still and THE, Uk i'll include THE uk as,
Speaker 2: well has got this massive challenge because these rare earths
Speaker 2: are just used in so many things in. iPhones they're
Speaker 2: using cancer, treatments they're using. Semiconductors SO i, thought you,
Speaker 2: know the fact that you talk To Valdus Don groskis
Speaker 2: about rare earth is just another one of these massive
Speaker 2: challenges That europe.
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