WEBVTT - BOE Set To Hold Rates, US Court Questions Tariffs, EU Rethinks ESG Rules 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, podcasts, radio news. 0:00:10.000 --> 0:00:12.440 This is the Blue Big Day Baqut podcast. Good morning, 0:00:12.440 --> 0:00:15.080 It's Thursday, the sixth of November. I'm Caroline Hepkitt in 0:00:15.080 --> 0:00:15.960 London and. 0:00:15.880 --> 0:00:19.439 I'm Stephen Caroline Brussels. Coming up today, Markets expect the 0:00:19.440 --> 0:00:22.800 Bank of England to hold interest rates steady, as British 0:00:22.880 --> 0:00:26.480 businesses warned the Chancellor Rachel Reeves against death by a 0:00:26.600 --> 0:00:27.680 thousand taxes. 0:00:28.360 --> 0:00:32.800 Donald Trump's global tariffs face a barrage of skeptical questions 0:00:32.840 --> 0:00:34.800 from the US Supreme Court. 0:00:35.000 --> 0:00:38.640 Plus reassessing the business climate. In an exclusive interview, the 0:00:38.640 --> 0:00:42.360 EU's Economy Commissioner, Valdas Dombrovskis tells us the Block is 0:00:42.440 --> 0:00:46.120 listening to international concerns over its ESG rules. 0:00:46.600 --> 0:00:48.559 Let's start with the roundup of our top stories. 0:00:49.360 --> 0:00:51.720 The Bank of England is likely to keep interest rates 0:00:51.800 --> 0:00:55.639 unchanged today in what's expected to be a closely contested decision. 0:00:56.080 --> 0:00:59.040 Markets and economists expect the UK Central Bank to hold 0:00:59.080 --> 0:01:02.040 its benchmark rate at four percent. With this six to 0:01:02.120 --> 0:01:04.960 three split on the Monetary Policy Committee. The most common 0:01:05.000 --> 0:01:08.120 response in Bloomberg survey that would slow the once a 0:01:08.240 --> 0:01:11.240 quarter pace of cut that has maintained since August twenty 0:01:11.319 --> 0:01:14.480 twenty four. Here's our chief UK economist, Dan Hansen. 0:01:15.040 --> 0:01:17.240 I don't think they will cut, but I think it's 0:01:17.280 --> 0:01:19.720 going to be a tight decision between a cut and 0:01:19.760 --> 0:01:21.720 a hold. I think the bank will want to know 0:01:22.319 --> 0:01:24.319 what exactly is in the budget, and they don't know 0:01:24.360 --> 0:01:26.600 that yet. They can assume, as we've all been assuming 0:01:26.680 --> 0:01:28.840 for the past, coming on for six months now, what 0:01:28.959 --> 0:01:30.720 may or may not be in the budget, and they 0:01:30.720 --> 0:01:33.720 can obviously make assumptions, but they'll want to know. I 0:01:33.760 --> 0:01:37.319 also think, you know, bigger picture, inflation's nearly four percent 0:01:37.600 --> 0:01:40.440 is quite a difficult backdrop for them to cut interest rates. 0:01:40.520 --> 0:01:42.560 It doesn't feel like there's any need to. 0:01:42.520 --> 0:01:45.560 Rush Dan Hanson from Bloomberg Economics there as the BOE 0:01:45.600 --> 0:01:48.840 today also rolls out a new look monetary Policy Report 0:01:49.160 --> 0:01:51.360 and minutes that for the first time, will show each 0:01:51.360 --> 0:01:55.320 of the nine MPC policy makers setting out their views individually. 0:01:55.720 --> 0:01:57.920 We'll have the decision live here on Bloomberg Radio at 0:01:57.960 --> 0:02:00.960 twelve pm in London, followed by special coverage of the 0:02:00.960 --> 0:02:04.040 press conference led by Governor Andrew Bailey half an hour later. 0:02:04.520 --> 0:02:08.080 Well, the UK's biggest business lobby is warning against tax 0:02:08.160 --> 0:02:11.560 hikes in the upcoming budget. Instead, the group is calling 0:02:11.560 --> 0:02:16.200 for measures including improving skills and developing new technology. Bluebag's 0:02:16.200 --> 0:02:18.280 teaba Adebayo has the story. 0:02:18.720 --> 0:02:21.760 Death by a thousand taxes. That's the fate which could 0:02:21.800 --> 0:02:25.840 await UK companies if the Chancellor hikes smaller levies. According 0:02:25.919 --> 0:02:30.200 to the Confederation of British Industry CBI, proposals to boost 0:02:30.240 --> 0:02:34.920 growth include first tracking infrastructure projects, lowering energy costs and 0:02:35.000 --> 0:02:39.200 promoting exports. The caution comes after Rachel Reeves set the 0:02:39.240 --> 0:02:42.320 stage for tax hikes in a pre budget speechless week 0:02:42.480 --> 0:02:46.600 as she seeks to plug the fiscal hole. Lower productivity 0:02:46.680 --> 0:02:50.000 estimates from the Office for Budget Responsibility could mean a 0:02:50.080 --> 0:02:53.440 twenty billion pound hit to the government after the body 0:02:53.560 --> 0:02:57.240 was too optimistic about the economy in recent years. The 0:02:57.320 --> 0:03:00.320 situation could leave the Treasury needing to find as much 0:03:00.320 --> 0:03:03.840 as thirty five billion pounds just to restore the slim 0:03:03.840 --> 0:03:07.959 headroom they had last budget. But despite the downgrade, reports 0:03:08.000 --> 0:03:11.200 in the Financial Times say the Chancellor will spare British 0:03:11.240 --> 0:03:14.519 banks from bigger tax bills, making clear she wants the 0:03:14.560 --> 0:03:18.040 sector to remain competitive in London to had a buyer. 0:03:18.160 --> 0:03:20.120 Bloomberg Radio the. 0:03:20.200 --> 0:03:24.000 US Supreme Court appeared skeptical of President Trump's signature global 0:03:24.120 --> 0:03:26.920 tariff regime, as Justice has questioned the use of an 0:03:26.919 --> 0:03:30.560 emergency powers law to collect tens of billions of dollars 0:03:30.639 --> 0:03:33.520 a month. The court hinted it was ready to put 0:03:33.560 --> 0:03:36.680 significant limits on tariffs for the first time since Trump 0:03:36.800 --> 0:03:39.840 took office in January. Hours after the hearing, the President 0:03:39.880 --> 0:03:41.520 gave his reaction on Fox News. 0:03:42.200 --> 0:03:44.080 I heard the court case went well today, but I 0:03:44.160 --> 0:03:46.240 just heard that a little while ago, because, as you know, 0:03:46.280 --> 0:03:49.720 it's just two hours ago that they finished up. But 0:03:50.080 --> 0:03:52.480 I will say this, it would be devastating for our 0:03:52.480 --> 0:03:53.720 country if we lost their. 0:03:53.760 --> 0:03:56.720 Devastating, President Trump, speaking there on Fox News a special 0:03:56.760 --> 0:03:59.960 report with Brett Bayer. Now, ruling isn't expected for several weeks, 0:04:00.000 --> 0:04:03.200 but a decision against Trump could force refunds and remove 0:04:03.280 --> 0:04:06.800 a major burden on US importer is blunting the effect 0:04:06.840 --> 0:04:10.760 of tariffs as a tool against trading partners well. 0:04:10.760 --> 0:04:14.840 President Trump is hosting a summit with five Central Asian 0:04:14.920 --> 0:04:19.360 countries as Washington steps up its push for influence in 0:04:19.520 --> 0:04:23.160 the mineral rich region where China and Russia have long 0:04:23.200 --> 0:04:26.720 held sway. It comes as the EU's Economy Commissioner has 0:04:26.760 --> 0:04:30.479 told Bloomberg Radio the Bloc is now offering technology and 0:04:30.600 --> 0:04:35.760 financing to other countries to develop sources of those key minerals. 0:04:36.000 --> 0:04:39.520 Valdis don Bovski says that China's twelve month suspension of 0:04:39.680 --> 0:04:43.680 rare earth export curbs by his time, but it doesn't 0:04:43.720 --> 0:04:45.520 resolve the issue. 0:04:45.200 --> 0:04:48.320 In a sense. It's address as short term concerns, but 0:04:48.480 --> 0:04:53.320 it also shows vulnerability which we are facing in terms 0:04:53.360 --> 0:05:00.160 of supplies and zerofour We also must work towards diversification. 0:04:59.480 --> 0:05:03.760 Of Also, European Economy Commissioner of Eldis don Boskis. He 0:05:03.839 --> 0:05:06.960 went on to also signal that the EU is willing 0:05:07.000 --> 0:05:11.919 to accommodate international concerns about its ESG rules as the 0:05:11.960 --> 0:05:15.040 Bloc fields threats from the US and cutter. 0:05:15.520 --> 0:05:18.479 In videos, CEO Janson Hwang has warned that Beijing is 0:05:18.520 --> 0:05:21.520 currently on track to take the lead in artificial intelligence. 0:05:21.520 --> 0:05:24.839 Bloomberg's Euan Parts has more China is going to win 0:05:24.920 --> 0:05:27.520 the AI race. Those are the start words of the 0:05:27.520 --> 0:05:30.400 boss of the world's most valuable company. Speaking to the 0:05:30.440 --> 0:05:33.560 Financial Times and Videos, Jensen Wang says that the West, 0:05:33.640 --> 0:05:36.040 including the US and UK, was being held back by 0:05:36.080 --> 0:05:39.719 what he called cynicism. He says that lower energy costs 0:05:39.760 --> 0:05:44.040 and looser regulations are adding to Beijing's advantages. Wang's remarks 0:05:44.040 --> 0:05:46.560 come after the Trump administration maintained its ban on in 0:05:46.640 --> 0:05:49.839 video selling its most advanced chips to China following the 0:05:49.839 --> 0:05:53.279 Trumps summit last week in London, i'm un pots Bloomberg 0:05:53.360 --> 0:05:54.200 Radio Now. 0:05:54.240 --> 0:05:57.640 The US plans to cut domestic flight capacity by ten 0:05:57.720 --> 0:06:01.919 percent at forty major airport across the country if the 0:06:02.000 --> 0:06:06.320 government shut down continues. The Federal Aviation Administration made the 0:06:06.360 --> 0:06:09.599 decision to ease pressure on air traffic controllers, who have 0:06:09.640 --> 0:06:14.760 been reporting staff shortages and issues with fatigue. Transportation Secutory 0:06:14.800 --> 0:06:18.120 Sean Duffy says the situation is fluid, but safety is 0:06:18.120 --> 0:06:18.800 the priority. 0:06:19.880 --> 0:06:23.480 I anticipate there will be additional disruptions, There'll be frustration. 0:06:24.160 --> 0:06:26.880 We are working with the airlines, They're going to work 0:06:26.880 --> 0:06:30.599 with passengers, but in the end, our sole role is 0:06:30.640 --> 0:06:33.359 to make sure that we keep this airspace as safe 0:06:33.360 --> 0:06:34.040 as possible. 0:06:34.960 --> 0:06:38.080 Duffy added that any further restrictions on flights will be 0:06:38.120 --> 0:06:42.440 determined by data. The FAA said that flight reductions are 0:06:42.480 --> 0:06:47.920 expected to be staggered heading into the weekend, and international 0:06:48.000 --> 0:06:49.600 routes won't be affected. 0:06:50.440 --> 0:06:52.520 Those are your top stories on the markets. We are 0:06:52.560 --> 0:06:55.039 seeing somewhat of a rebound and Asian stocks today, dip 0:06:55.080 --> 0:06:57.960 bio stepping in the mscis specific index up by one 0:06:58.040 --> 0:07:00.279 point one percent, the NICKA in Tokyo one point four 0:07:00.320 --> 0:07:02.880 percent higher, That Hangs Hangs up by one point seven percent. 0:07:03.120 --> 0:07:05.480 European stock future is pretty flat at the moment. On 0:07:05.520 --> 0:07:07.800 Wall Street. They're slightly lower two tents lower for Nasdaq 0:07:07.880 --> 0:07:11.000 futures after we saw that index rebound by seven tenths 0:07:11.000 --> 0:07:14.240 of one percent yesterday. Elsewhere and markets, we're also keeping 0:07:14.240 --> 0:07:16.720 an eye on gold prices up two tents at three 0:07:17.160 --> 0:07:19.240 nine hundred and eighty six dollars at troyats. 0:07:20.280 --> 0:07:20.440 Well. 0:07:20.480 --> 0:07:22.160 In a moment, we'll look ahead to the Bank of 0:07:22.200 --> 0:07:25.760 England's rate decision and analyze what emerged from the US 0:07:25.880 --> 0:07:29.080 Supreme Court hearing over Donald Trump's tariffs. Plus, we're also 0:07:29.120 --> 0:07:32.160 going to bring you the special interview that Stephen has 0:07:32.200 --> 0:07:35.360 done with the EU Economy Commission of Aldis Dombrovskis, who's 0:07:35.400 --> 0:07:39.080 been speaking to us about Ukraine trade with China and 0:07:39.120 --> 0:07:43.440 the pressure on the EU to water down its climate rules. Stephen, 0:07:43.600 --> 0:07:45.840 I saw some nice photographs of US city, next of 0:07:45.920 --> 0:07:48.760 Eldis Dombrovskis in the Brussels studio. You're getting to know 0:07:48.800 --> 0:07:50.680 the commissioners now, Yeah, I'm. 0:07:50.600 --> 0:07:52.120 Just making my way around, you know, I have to 0:07:52.160 --> 0:07:54.040 meet them all eventually. It's a lot of handshaking to do, 0:07:54.080 --> 0:07:56.640 and you've got twenty seven of them to meet Caroline 0:07:56.640 --> 0:07:58.200 as well. Before we get into those stories as well, 0:07:58.240 --> 0:08:01.280 I wanted to mention another story that we've been reading 0:08:01.320 --> 0:08:03.760 this morning. For perhaps you know you're looking to make 0:08:03.800 --> 0:08:06.640 a new investment, and why not buy a sports team, 0:08:06.800 --> 0:08:08.720 or at least part of one. This is something our 0:08:08.760 --> 0:08:11.040 colleague Ben Stubbles has been reporting on that he covers 0:08:11.080 --> 0:08:13.600 the ultra rich, and he says that super rich clients 0:08:13.600 --> 0:08:16.840 at JP Morgan are now being increasingly attracted to invest 0:08:16.880 --> 0:08:20.520 in teams because they see it as something that can 0:08:20.600 --> 0:08:23.440 provide them with decent returns. It's not just a passion 0:08:23.520 --> 0:08:28.160 project anymore. According to their figures, twenty percent of one 0:08:28.240 --> 0:08:31.800 hundred and eleven billionaire families that were surveyed by them 0:08:31.920 --> 0:08:34.760 now and controlling stakes in sports teams. That's up from 0:08:35.000 --> 0:08:38.000 six percent three years ago as well. So an increasing 0:08:38.160 --> 0:08:40.480 number of interest institutional investors are also getting in on 0:08:40.520 --> 0:08:41.079 this as well. 0:08:41.559 --> 0:08:43.400 Yeah, I think it's really fascinating. I mean just look 0:08:43.440 --> 0:08:46.360 at in the UK, people like Jim Ratcliffe are taking 0:08:46.400 --> 0:08:50.280 that controlling stake in Majesty United only last year. I 0:08:50.320 --> 0:08:52.839 mean that was one and a half billion dollars worth 0:08:52.880 --> 0:08:55.679 to buy about. Well, yeah, it's a team that has 0:08:55.679 --> 0:08:58.760 struggled somewhat, but no, I think it's very interesting that. Yeah, 0:08:58.800 --> 0:09:03.280 forget art, you know, cars or why maybe now it's 0:09:03.280 --> 0:09:04.600 at about the sports team. 0:09:04.840 --> 0:09:06.880 I feel like this is real life ted Lassa was 0:09:06.920 --> 0:09:09.280 happening in front of us, so familiar with the TV 0:09:09.360 --> 0:09:13.640 series as anyway, let's turn to the Bank of England 0:09:13.679 --> 0:09:17.800 decision today. Now expected to hold interest rates steady. Policymakers 0:09:17.960 --> 0:09:20.079 likely to be cautious given the budget looming in three 0:09:20.120 --> 0:09:22.480 weeks time, despite assurances in the Chancellor that she won't 0:09:22.520 --> 0:09:25.320 add to inflation. Our UK correspondent Lizzie Burden is with 0:09:25.400 --> 0:09:27.800 us for more this morning. Lizzie set us up then 0:09:27.840 --> 0:09:28.800 for today's decision. 0:09:29.320 --> 0:09:31.360 Well, Stephen, as you say, the expectation is that they're 0:09:31.400 --> 0:09:34.360 going to hold rates at four percent and that would 0:09:34.360 --> 0:09:36.840 break with the quarterly cadence of rate cuts that they've 0:09:36.880 --> 0:09:39.520 been in since last August, and it would break with 0:09:39.640 --> 0:09:43.400 the Fed. But do be on for a surprise cut today. 0:09:43.440 --> 0:09:47.560 It's what Nomura, Barclays and Goldman Sachs all see. And 0:09:47.640 --> 0:09:49.679 even if they do hold rates, it could be a 0:09:49.720 --> 0:09:52.160 really tight vote split. It could hinge on the governor. 0:09:52.400 --> 0:09:55.680 Even if most economists see a six' three. Split why 0:09:56.160 --> 0:09:58.240 is it going to be so? Tight, well they're inching 0:09:58.320 --> 0:10:02.920 towards neutral, rates the race that neither constrains nor stimulates the, 0:10:02.960 --> 0:10:05.400 economy and we just don't know where that. Is most 0:10:05.440 --> 0:10:08.720 economists think it's three. Percent but as we get closer and, 0:10:08.800 --> 0:10:12.559 closer the more carefully and slowly The Monetary Policy committee 0:10:12.600 --> 0:10:15.280 is likely to want to. Move the other elephant in 0:10:15.320 --> 0:10:17.800 the room, here of, course is the budget On november 0:10:17.840 --> 0:10:21.640 the twenty. Sixth then, yes The Chancellor Rachel reeves promised 0:10:21.640 --> 0:10:23.840 this week that it's going to be, disinflationary BUT i 0:10:23.880 --> 0:10:25.880 doubt that The Military Policy committee is going to want 0:10:25.880 --> 0:10:27.600 to vote as if it will. Be they'll want to 0:10:27.600 --> 0:10:31.120 see the policies for. Themselves and indeed it means that 0:10:31.160 --> 0:10:34.920 the updated forecast today are somewhat. Moot the expectation is 0:10:34.960 --> 0:10:38.240 that the inflation outlook's going to be downgraded for this 0:10:38.320 --> 0:10:41.240 year and next compared to The august, projection and that 0:10:41.280 --> 0:10:44.680 the growth and unemployment outlooks are going to stay the. 0:10:44.720 --> 0:10:46.560 Same but we need to take that with a pinch of. 0:10:46.600 --> 0:10:49.000 Salt and we don't know what's in the budget. Yet 0:10:49.280 --> 0:10:51.520 But i'm really interested to hear what the governor has 0:10:51.559 --> 0:10:55.080 to say about The chancellor and her. Budget remember On 0:10:55.120 --> 0:10:57.800 tuesday she had some shots to fire at THE boe 0:10:57.920 --> 0:11:01.040 for having rates at four. Percent she says it's straining business. 0:11:01.120 --> 0:11:03.640 Borrowing some have said that's a bit trum. Pesque SO 0:11:03.679 --> 0:11:05.559 i wonder What Andrew bailey has to say about. 0:11:05.559 --> 0:11:08.520 That, yeah so what will the press conference be focused? 0:11:08.520 --> 0:11:11.080 On, well we want to know when the next cut is. 0:11:11.080 --> 0:11:14.080 Coming if it isn't, today how long will this pause? 0:11:14.160 --> 0:11:15.559 Be is it next. 0:11:15.559 --> 0:11:17.520 Cut coming In? December and for. 0:11:17.559 --> 0:11:20.920 Clues about, That i'm really interested how the governor characterizes 0:11:21.000 --> 0:11:25.120 that latest inflation reading three point eight. Percent it's less 0:11:25.120 --> 0:11:27.520 than The bank Of england had, forecast it's less than 0:11:27.920 --> 0:11:31.360 consensus forecast, was but it's still nearly twice THE boees. 0:11:31.440 --> 0:11:34.360 Target how do they talk about the labor market the 0:11:34.440 --> 0:11:37.040 last time they had a, meeting there were lots of, 0:11:37.120 --> 0:11:42.520 warnings hawkish hints about food price, inflation inflation. Expectations if 0:11:42.559 --> 0:11:45.600 the communications Today carolina are very, dubbish or indeed if 0:11:45.600 --> 0:11:48.640 they cut we could see this continued out performance for 0:11:48.640 --> 0:11:51.520 guilts that we saw all Through, october and one dollar 0:11:51.559 --> 0:11:54.000 thirty really is the key level for the pound that 0:11:54.000 --> 0:11:54.440 we need to. 0:11:54.440 --> 0:11:59.640 Watch, lizzie you mentioned The chancellor's comments in terms of 0:11:59.679 --> 0:12:02.160 The bank Of england's rate where it is? Now is 0:12:02.200 --> 0:12:04.679 it a two way street from Thread Needle street To? 0:12:04.720 --> 0:12:07.440 Westminster are there signals that could come from The bank 0:12:07.480 --> 0:12:10.719 Of england that might be helpful or perhaps hindrance To 0:12:10.800 --> 0:12:13.120 Rachel reeves as we're counting down to the, Budget. 0:12:13.000 --> 0:12:16.000 Well Rachel reeves could be the biggest beneficiary from what 0:12:16.080 --> 0:12:19.320 The bank Of england. Does if the most optimistic forecasts 0:12:19.360 --> 0:12:21.520 are right and THE boe cuts rates to three percent 0:12:21.600 --> 0:12:25.520 eventually she could bank around ten billion pounds at next 0:12:25.559 --> 0:12:28.840 year's budget in lower borrowing costs when compared to the 0:12:28.840 --> 0:12:32.040 three point eight percent inter straight floor that's forecast by 0:12:32.040 --> 0:12:35.480 The office For Budget, responsibility the fiscal watchdog In, March 0:12:35.880 --> 0:12:39.440 and so she really needs The boe to cut, rates 0:12:39.440 --> 0:12:42.040 and that's WHY i reckon that her speech On, Tuesday 0:12:42.360 --> 0:12:44.800 yes was aimed a bit at, Voters, yes was aimed 0:12:44.800 --> 0:12:47.840 a bit at bond, markets but the real target audience 0:12:48.080 --> 0:12:50.120 was across the road FROM us Thread Needle, street The 0:12:50.120 --> 0:12:50.360 bank Of. 0:12:50.360 --> 0:12:53.079 England, lizzie thank you so much for being with, us 0:12:53.080 --> 0:12:55.320 so we look forward to the decision from The bank Of. 0:12:55.360 --> 0:12:56.880 England that is OUR uk, Correspondent. 0:12:56.920 --> 0:13:00.000 Lizzibuden now THE Us Supreme court has hinted it's ready 0:13:00.040 --> 0:13:02.920 to put limits On President Donald trump's power to impose 0:13:03.040 --> 0:13:06.720 sweeping global. Tariffs the signals came during a three hour hearing, 0:13:06.800 --> 0:13:10.360 yesterday although ruling isn't expected for several. Weeks let's bring 0:13:10.360 --> 0:13:13.440 in Our chiefhasor Correspondent Rosalind matheson for more on this. 0:13:13.760 --> 0:13:16.520 Ross what was said then during this hearing and why 0:13:16.600 --> 0:13:20.000 is it being interpreted as potentially being bad news For Donald. 0:13:20.040 --> 0:13:23.280 Trump, well as you were saying, that the court did 0:13:23.280 --> 0:13:27.200 appear a bit skeptical really Of Donald trump's tariff agenda 0:13:27.240 --> 0:13:31.040 and his approach to imposing many of these tariffs around the, 0:13:31.080 --> 0:13:34.000 world and people were passing that for clues as to 0:13:34.080 --> 0:13:37.560 how they might issue their final ruling likely before the 0:13:37.640 --> 0:13:39.320 end of the, year and the feeling that The court 0:13:39.400 --> 0:13:42.600 is edging towards putting some limits On Donald. Trump that's 0:13:42.640 --> 0:13:47.319 because you did, have you, know across the, divide skepticism coming, 0:13:47.320 --> 0:13:51.440 in including from some of the more supportive members of the, 0:13:51.480 --> 0:13:54.520 court you would, say potentially For Donald trump's, agenda and 0:13:54.520 --> 0:13:57.520 the more conservative. Judges you had The Chief Justice Don, 0:13:57.600 --> 0:14:00.680 roberts you, know he called the tariffs an imposition taxes On. 0:14:00.760 --> 0:14:05.720 Americans you had A trump, Appointee Amy Cony. Barrett she 0:14:05.760 --> 0:14:09.600 was asking pretty probing, questions albeit of both, sides but 0:14:09.679 --> 0:14:12.840 she wasn't holding, back and she was asking how refunds 0:14:12.880 --> 0:14:16.800 would work if the tariffs were to be, invalidating saying 0:14:16.800 --> 0:14:19.040 she felt it could be quite a. Mess and so 0:14:19.160 --> 0:14:22.800 you had really some fairly hard questioning coming from both 0:14:22.840 --> 0:14:25.240 sides of the. Aisle it's not surprising to see that 0:14:25.280 --> 0:14:27.480 coming from the more liberal, judges but to see it 0:14:27.520 --> 0:14:31.640 from the conservative judges also just raising again the expectation 0:14:31.800 --> 0:14:34.640 that perhaps the, court in this, case The Supreme, court 0:14:34.760 --> 0:14:38.480 might decide to impose some limits On trump's. Agenda. 0:14:39.000 --> 0:14:41.920 Yeah, ABSOLUTELY i mean the questioning the hearing last is 0:14:41.920 --> 0:14:44.960 something like three hours if the court were to rule 0:14:45.280 --> 0:14:48.480 That trump has overstepped in terms of his authority and 0:14:48.560 --> 0:14:52.560 imposing these global, tariffs what would that actually. Mean, well 0:14:52.560 --> 0:14:53.040 that's the big. 0:14:53.120 --> 0:14:55.880 Question and, really you, know either, way you're going to 0:14:55.880 --> 0:14:59.360 see a lot of the uncertainty continue around tariffs And 0:14:59.400 --> 0:15:03.400 Donald trump's approach and the reality for companies and countries, 0:15:03.720 --> 0:15:06.040 alike because even if the court does go in the 0:15:06.040 --> 0:15:09.120 direction of imposing some, limits there are other, leavers arguably 0:15:09.160 --> 0:15:12.560 At Donald trump's, disposal that he can turn towards instead 0:15:13.000 --> 0:15:15.960 to try and keep the tariff regime. Going so there's 0:15:15.960 --> 0:15:19.240 the question of whether he uses other mechanisms to try 0:15:19.240 --> 0:15:20.400 and keep tariffs in. 0:15:20.360 --> 0:15:22.120 Place or at least a part of. 0:15:22.160 --> 0:15:23.800 It there's a question of what do you do if 0:15:23.800 --> 0:15:26.720 you've already been hit by tariff's and a company paying 0:15:26.760 --> 0:15:30.440 Those can you get? Restitution can you essentially get a? 0:15:30.520 --> 0:15:33.040 Refund and it's really not that easy for that to. 0:15:33.120 --> 0:15:36.480 HAPPEN i, mean it's basically paper checks and the government 0:15:36.480 --> 0:15:39.320 would have to be inclined to start issuing. Them you, 0:15:39.320 --> 0:15:42.160 know some of our reporters in THE us talk to 0:15:42.240 --> 0:15:45.000 some company owners who is actually, said we've written this. 0:15:45.080 --> 0:15:46.760 Off you, know this is a sunk. Cost we're not 0:15:46.800 --> 0:15:49.600 going to get this money back either, way even if 0:15:49.600 --> 0:15:53.200 the court does rule in our. Favor so the reality 0:15:53.240 --> 0:15:56.720 of whether you, know companies get refunds or others get 0:15:56.760 --> 0:15:59.520 refunds if the court rules in that direction is very very. 0:15:59.640 --> 0:16:02.680 Unclear it could be an, impact of, course on countries 0:16:02.680 --> 0:16:05.280 that are still negotiating trade deals with THE. Us did 0:16:05.320 --> 0:16:07.520 they look at this and, say, well hang, On perhaps 0:16:07.520 --> 0:16:09.240 the ball is a little bit in our court in 0:16:09.240 --> 0:16:11.760 the way that we negotiate or the kinds of things 0:16:11.760 --> 0:16:14.080 we're willing to agree on as part of. It so 0:16:14.120 --> 0:16:17.320 there's sort of three tiers potentially of impact, there depending 0:16:17.320 --> 0:16:18.040 on which way the court. 0:16:18.080 --> 0:16:20.560 Goes we're very interested to see when we do get that, 0:16:20.680 --> 0:16:23.800 ruling which way the justices do decide to. Lean another 0:16:24.000 --> 0:16:26.640 strand of this trade, story, though we've been talking about 0:16:26.640 --> 0:16:30.240 the rare earth curves From china and that has meant 0:16:30.280 --> 0:16:33.920 for supplies of these critical. Minerals Donald trump's meeting representatives 0:16:33.880 --> 0:16:37.680 from Five Central asian countries as a global race for natural? 0:16:37.720 --> 0:16:40.400 Resources hearts up what should we be expecting from this? 0:16:40.560 --> 0:16:42.600 Meeting AND i suppose how does it fit into efforts 0:16:42.640 --> 0:16:45.320 that others are making to try and woo mineral rich 0:16:45.360 --> 0:16:46.280 countries to secure. 0:16:46.320 --> 0:16:47.960 Supplies, well that's. 0:16:48.040 --> 0:16:51.480 Right everybody's racing for us these, days including THE, us 0:16:51.520 --> 0:16:53.480 and Certainly Donald trump has made it a key part 0:16:53.520 --> 0:16:57.080 of a lot of his negotiations with countries around the, 0:16:57.120 --> 0:16:59.760 world including his trade. Negotiations what are you willing to 0:16:59.760 --> 0:17:02.800 give us in terms of rare? Earth and he's hosting this, 0:17:02.920 --> 0:17:06.919 summit as you, say of these five, countries it'll be 0:17:06.960 --> 0:17:08.919 interesting to see it happen at The White. House it 0:17:08.960 --> 0:17:12.400 gives it that extra level of prestige potentially for these 0:17:12.400 --> 0:17:16.000 countries and these. Leaders but arguably he's doing so also 0:17:16.119 --> 0:17:19.240 because he's wanting to hear from them what the relationship 0:17:19.280 --> 0:17:21.159 with THE us is going to be and whether THE 0:17:21.280 --> 0:17:24.280 us can get access to some of the rare earths 0:17:24.359 --> 0:17:27.720 or the critical minerals that are residing in these. Countries 0:17:27.720 --> 0:17:30.080 but as you, say he's got some competition there because 0:17:30.080 --> 0:17:32.000 this is an area that has long been the, domain 0:17:32.480 --> 0:17:35.679 arguably Of china And russia and rivalry Between china And 0:17:35.720 --> 0:17:38.480 russia in that, region and some of the countries have 0:17:38.560 --> 0:17:41.399 been concerned Since russia's invasion Of ukraine of being sides 0:17:41.400 --> 0:17:41.800 wiped by. 0:17:41.880 --> 0:17:43.280 Sanctions so they're. 0:17:43.160 --> 0:17:45.919 Not necessarily all In russia's corner at the, moment But 0:17:46.040 --> 0:17:48.880 china is a very big presence there, also and even 0:17:48.880 --> 0:17:52.680 THE eu is looking to diversify and open conversations. There 0:17:52.720 --> 0:17:56.000 so there's quite a bit of competition in this region 0:17:56.400 --> 0:18:00.480 between all those powers for access to rare. Earth and 0:18:00.520 --> 0:18:03.160 perhaps that's some leverage for these countries in terms of 0:18:03.480 --> 0:18:06.040 whom or to whom they decide to ship these things. 0:18:06.040 --> 0:18:10.080 Too, yeah absolutely is huge, question isn't it? Rare thank 0:18:10.119 --> 0:18:12.000 you so Much rolis for being with. Us that Is 0:18:12.000 --> 0:18:17.760 bloomberg's Chief asia correspondent was in, matheson thank you stay with. 0:18:17.840 --> 0:18:20.560 Us more From Bloomberg daybaqube coming up after. 0:18:20.600 --> 0:18:20.760 This. 0:18:22.000 --> 0:18:24.840 Well that global race for raw materials are particularly rare earth, 0:18:24.920 --> 0:18:27.199 minerals is a key part of the Conversation i've been 0:18:27.240 --> 0:18:30.600 having with the E's Economy, Commissioner Valdostan. Brovskis he joined 0:18:30.640 --> 0:18:33.000 me in Our brussels studio to talk about wide range of, 0:18:33.040 --> 0:18:35.800 issues including the push from THE us And katar for 0:18:35.840 --> 0:18:38.439 THE eu to water down some of its climate. Rules 0:18:38.680 --> 0:18:41.960 my conversation With Valdestan brovskis began With ukraine and The 0:18:41.960 --> 0:18:45.880 European commission's progress on a plan to use Frozen russian 0:18:45.920 --> 0:18:47.080 assets to Support. 0:18:47.160 --> 0:18:50.920 Kiev So European consul tasks The commission now to work 0:18:51.000 --> 0:18:54.600 on a funding, Options so that's why we're currently. Preparing 0:18:54.720 --> 0:18:58.359 but also we held made clear that we see this 0:18:58.800 --> 0:19:04.800 reparation loan still as a main and most feasible, options 0:19:04.800 --> 0:19:09.000 so we continue also the technical work on preparation on 0:19:09.560 --> 0:19:14.679 reparations a, loan also engagement With belgium authorities concerning the 0:19:15.640 --> 0:19:19.959 guarantees which they need in a sense to agree to 0:19:20.000 --> 0:19:24.679 this reparation. Loan but in a sense this is a 0:19:24.720 --> 0:19:29.280 proposal which addresses many. Issues first of, all they are 0:19:29.359 --> 0:19:33.920 very sizeable funding Needs ukraine is, facing SO imf is 0:19:33.960 --> 0:19:37.760 putting it at sixty billion dollars for the next two, 0:19:37.800 --> 0:19:40.720 years and that's without military, support which comes in a 0:19:40.800 --> 0:19:45.680 similar order of. Magnitude and also A memphi is concerned 0:19:45.800 --> 0:19:49.639 about depth sustainability In, ukraine so we cannot just continue 0:19:49.680 --> 0:19:55.320 with giving. Loans obviously grants is an, option but a 0:19:55.480 --> 0:19:58.040 question Whether member states would agree to provide grants on 0:19:58.080 --> 0:20:02.840 that scale for this reparation, loan Which ukraine would only 0:20:02.880 --> 0:20:07.200 need to repay Once russia pays reparation is a good 0:20:07.440 --> 0:20:12.000 option because it Addresses ukraine's funding, needs it does not 0:20:12.440 --> 0:20:16.680 create problems with depth sustainability In, ukraine and it falls 0:20:16.840 --> 0:20:20.320 short of confiscation Of russian, assets which as we know 0:20:20.680 --> 0:20:25.440 is says a step too far for a number of member. 0:20:25.480 --> 0:20:28.120 States what sort of engagements have you had With belgium 0:20:28.119 --> 0:20:31.040 SINCE fas meeting and have you had any indication that 0:20:31.080 --> 0:20:33.920 they are being reassured by the proposals that The commission is. 0:20:33.960 --> 0:20:38.920 Developing we continue working on this in a, sense it's 0:20:39.160 --> 0:20:42.800 clear understunderstanding is there also On commission side that we 0:20:43.280 --> 0:20:46.320 need to be serious about those concerns and we need 0:20:46.359 --> 0:20:47.639 to find a good way to. 0:20:48.320 --> 0:20:52.160