Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the Blueberg Day BAQ podcast, available every morning
Speaker 2: on Apple, Spotify or wherever you listen. It's Tuesday, the
Speaker 2: tenth of June in London.
Speaker 3: I'm Caroline Hepke and I'm Stephen Carroll. Coming up today.
Speaker 3: US President Donald Trump deploys the Marines to Los Angeles
Speaker 3: in response to anti deportation protests as Democrats accuse him
Speaker 3: of inflaming tensions.
Speaker 2: Europe's IPO drought, leave Stock Exchange is battling for listings
Speaker 2: in an increasingly shallow pool.
Speaker 3: Plus focusing on core changes, Apple unveils the most sweeping
Speaker 3: software redesign in its history, as its troubled AI efforts
Speaker 3: take a back seat.
Speaker 4: Let's start with the roundup of our top stories.
Speaker 3: We begin with the unrest in Los Angeles. The Trump
Speaker 3: admitter station says it is deploying seven hundred Marines to
Speaker 3: the city as political tensions with Democrats grow. The White
Speaker 3: House says conditions in La or spiral and that federal
Speaker 3: forces are needed to support immigration agents and restore order.
Speaker 3: President Donald Trump and California's Governor Gavin Newsom have classed
Speaker 3: repeatedly over the response to the unrest, with the States
Speaker 3: suing the Trump administration for mobilizing National Guard troops in
Speaker 3: the city. Here's Los Angeles Democratic Mayor Karen Bass.
Speaker 5: They're guarding the federal building here in downtown, and they're
Speaker 5: guarding the Federal building in Westwood. That's what they're doing,
Speaker 5: So they need marines on top of it. I don't
Speaker 5: understand that. That's why I feel like we are part
Speaker 5: of an experiment that we did not ask to be
Speaker 5: a part of.
Speaker 3: Mayor Karen Bass, speaking there as the United Nations on
Speaker 3: Monday warned against a further militarization of the situation in
Speaker 3: la On Monday, largely peaceful daytime protests morphed into a
Speaker 3: fourth day of scattered clashes with police. The protests, which
Speaker 3: have been largely limited to a few small parts of
Speaker 3: the city, were sparked by a rising number of raids
Speaker 3: by immigration agents, which local officials argue have spread fear
Speaker 3: in immigrant communities.
Speaker 2: Now to the trade talks I mentioned US China trade
Speaker 2: talks will continue for a second day in London as
Speaker 2: both sides seek to ease tensions over rare earth supplies
Speaker 2: and tech exports. Blueberk understands that the US is offering
Speaker 2: to ease some tech export controls in exchange for rare
Speaker 2: earth shipments from China, which produces seventy percent of global supplies.
Speaker 2: US Treasury Sectary Scott best sent and Commo Sexuy Howard
Speaker 2: Lutnik have been leading the American delegation, with Lutnik calling
Speaker 2: the talks after the first day fruitful, a sentiment echoed
Speaker 2: by President Trump.
Speaker 5: We are doing well with China.
Speaker 6: China's not easy. I think we're doing very well. They're
Speaker 6: over there now. I'm only getting good reports.
Speaker 4: So that was President Trump.
Speaker 2: Although optimistic about the talks, President Trump gave no clear
Speaker 2: answer on lifting export restrictions, saying we'll see when he
Speaker 2: was asked.
Speaker 3: Europe stock exchanges are fighting fiercely to win the few
Speaker 3: IPOs left looming across the continent. Data compiled by Bloomberg
Speaker 3: shows Europe has made up just eight percent of global
Speaker 3: issuance so far this year. That's against the yearly average
Speaker 3: of sixteen percent or more for the last decade.
Speaker 6: James Wilcock has more.
Speaker 7: You may not have heard of Vismer or they're sure
Speaker 7: that the stock exchange in Stockholm, London, Zurich, and Amsterdam
Speaker 7: have one's a software company and the other makes alarms,
Speaker 7: but both are expected to list at valuations potentially worth
Speaker 7: more than twenty billion euros. Europe's capital markets are trying
Speaker 7: their best to charm these potential public companies after being
Speaker 7: starved of new listings. And for the exchanges you miss out,
Speaker 7: alarm bells will be ringing in London, James Wilcock, Bloomberg Radio.
Speaker 4: Now.
Speaker 2: The UK government has reversed an unpopular cut that it
Speaker 2: made to pensioners' winter few benefits. A pension is with
Speaker 2: an income of under thirty five thousand pounds per year
Speaker 2: will now be able to claim extra money to heat
Speaker 2: their homes during the winter. It is a u turn
Speaker 2: that Chancellor Rachel Reeves says she can afford because she
Speaker 2: has stabilized the UK economy.
Speaker 8: We did that with a number of difficult decisions. But
Speaker 8: because of those decisions, our public finances are now in
Speaker 8: a better position, which means this year we're able to
Speaker 8: play the winter fuel payment to more pensioners. Nine million
Speaker 8: we'll receive it this year.
Speaker 2: The Chancellor earlier this year had to make last minute
Speaker 2: changes to curb disability benefits to return her fiscal headroom
Speaker 2: to just under ten billion pounds. The governing Labor Party
Speaker 2: has seen an abrupt fall from popularity since taking office
Speaker 2: last year, with most polls putting the party now second
Speaker 2: place to Reform UK.
Speaker 6: We're staying in the UK.
Speaker 3: The government is to invest fourteen point two billion pounds
Speaker 3: to help the build the Size wells See nuclear plant
Speaker 3: in Suffolk and Eastern England, a project that's already been
Speaker 3: on the drawing board for more than a decade remembers
Speaker 3: EU and parts has more.
Speaker 1: When completed, the three point two gigawatts Size or See
Speaker 1: nuclear plant will generate enough power for six million homes,
Speaker 1: which the government hopes will usher in a quote golden
Speaker 1: age of abundant clean energy. The total price tag for
Speaker 1: this clean energy, though, is likely to surpass forty billion pounds.
Speaker 1: Today's announcement, ahead of tomorrow's spending review, brings the government's
Speaker 1: total commitment to Size well See to just shy of
Speaker 1: eighteen billion pounds, meaning there's plenty to do in raising
Speaker 1: funds from the private sector. In London, I'm un pots
Speaker 1: Bloomberg Radio.
Speaker 2: To some corporate news now, Berklays is preparing to acts
Speaker 2: more than two hundred investment bank jobs in a bid
Speaker 2: to cut costs. The move is part of CEO CSVN
Speaker 2: Kunta Krishnan's plan to boost the profitability of the division.
Speaker 2: Bloomberg understands that managing directors will be the most senior
Speaker 2: employees affected by the changes, which are expected to reduce
Speaker 2: the lender's head count by around three percent. A Berkeley
Speaker 2: spokesperson said that the cuts are part of regular talent
Speaker 2: pool reviews to ensure continued investment in priority areas.
Speaker 3: Apple has introduced a host of new artificial intelligence features
Speaker 3: in a bid to match its companty. The announcements made
Speaker 3: during the firm's Worldwide Developers Conference yesterday include an expanded
Speaker 3: relationship with chat GPT maker open Ai. For Bloomberg's Ed
Speaker 3: Ludlow says the news was marred by concerns about the
Speaker 3: firms Siri software.
Speaker 9: The stock did drop sharply, literally in the opening minutes
Speaker 9: of the keynote presentation, and a part of that was
Speaker 9: senior Apple executives basically saying, we have nothing to say
Speaker 9: about Siri right now, the kind of core of Apple intelligence,
Speaker 9: and we won't hear more about that later in the year.
Speaker 9: Even though expectations around what Apple would or would not
Speaker 9: say around AI were pretty low going into this. The
Speaker 9: concern coming out today was, well, did we hear enough
Speaker 9: that we understand the roadmap forward when it comes to
Speaker 9: Apple and AI?
Speaker 3: That's Benber Technology correspondent Ed Ludlow speaking there. The new
Speaker 3: capabilities will help Apple's iOS operating system start to match
Speaker 3: some of the features being offered by Samsung and Google's
Speaker 3: Android devices.
Speaker 2: And those are a few of our top stories for
Speaker 2: you this morning. Well think you about Apple. The share
Speaker 2: price fell by one point two percent at the close
Speaker 2: on Monday after that keynote speech at the Worldwide Developers Conference.
Speaker 2: In terms of more broadly though, what we're thinking about,
Speaker 2: it's day two of these US China trade talks. Asian
Speaker 2: traders seem to have been shrugging off for any tariff fears,
Speaker 2: even though the effective tariff rate at the moment for
Speaker 2: imports into the US is about seven spots zero seven percent.
Speaker 2: But as I say, US officials have been quite optimistic.
Speaker 2: So if you look at the Asian session, you got
Speaker 2: the Msciaged Specific Index up by six tens of one percent,
Speaker 2: the Nike is up nine tenths of one percent, the
Speaker 2: hang saying up three tens of one percent, you get
Speaker 2: the picture. In terms of stop futures for the US
Speaker 2: also positive, The S and P five founded up four
Speaker 2: tenths of one percent, so climbing.
Speaker 4: To a three month high.
Speaker 2: The dollar strengthening against most FX pairing, so up by
Speaker 2: almost two tenths of one percent on the bloomberg A
Speaker 2: Dollar Spot Index. The euros in retreat, so too is
Speaker 2: the Japanese yen, and the pound is down a tenth
Speaker 2: of one percent. Looking at the bottom markets then, ahead
Speaker 2: of the inflation data that we get from the US
Speaker 2: on Wednesday, tenure US yields little changed at four forty eight.
Speaker 2: Bitcoin though is heading towards another record high, and we're
Speaker 2: hovering around one hundred and nine thousand, five hundred dollars
Speaker 2: just below that level. So those are the markets.
Speaker 3: In a moment, we'll bring you the latest on events
Speaker 3: in Los Angeles, plus where we are in the US
Speaker 3: China trade talks which continue today in London. But an
Speaker 3: other words on a story that we've been reading this
Speaker 3: morning hungrily early this morning, and this is the National
Speaker 3: Restaurant Awards rankings here in the UK, so list of
Speaker 3: the one hundred best restaurants and fine dining is the
Speaker 3: big winner, according to our food editor Kate crater As
Speaker 3: coming out on top of the list was the restaurant
Speaker 3: in the Ritz.
Speaker 6: It's classical dining room.
Speaker 3: So this is sort of an interesting shift around the
Speaker 3: kind of restaurants that are coming out on top of
Speaker 3: these things.
Speaker 6: It's back to the classics.
Speaker 2: Absolutely, it's that kind of you know, white gloves service.
Speaker 2: It's the Ritz, It's the swankiest hotel in London. It's
Speaker 2: not quite the priciest. Maybe they do at least have
Speaker 2: a menu at tasting many for five courses at one
Speaker 2: hundred and ninety nine pounds, so I suppose that's not
Speaker 2: not too much of a nosebleed moment. Chef John Williams
Speaker 2: has got this kind of classic fine dining restaurant has
Speaker 2: one out.
Speaker 3: I mean, I hope everyone else will enjoy. Also the
Speaker 3: activity that I've been to this morning, which is trying
Speaker 3: to count many of the top one hundred I've been to.
Speaker 3: The full list is in k Craters piece. I think
Speaker 3: I got to around ten, which I'm pretty happy about.
Speaker 4: It too taken me to one.
Speaker 3: We were discussing that earlier we have been to one
Speaker 3: of them together. That's true, but there is I mean
Speaker 3: plenty of options that it's also a nod to some
Speaker 3: restaurants no longer with us as it were Lisles and
Speaker 3: London came in at twenty one and that closed recently
Speaker 3: ensured it here in London. But we'll put a link
Speaker 3: to the article on our podcast show Notes. You can
Speaker 3: read the full list for yourself.
Speaker 2: Now let's get to our top story today. The Trump
Speaker 2: administration is sending around seven hundred hours active duty marines
Speaker 2: to respond to protests in Los Angeles. The California Governor,
Speaker 2: Garret vin Newsom has called the decision unlawful and has
Speaker 2: requested the White House revoke the order. Joining us now,
Speaker 2: as our senior editor, Bill Ferries, Good morning, Bill, there
Speaker 2: have been some images actually emerging we think of these
Speaker 2: marines deploying active duty military within the US. It is
Speaker 2: highly unusual. How has the president justified this?
Speaker 8: Hi?
Speaker 10: Yeah, thanks for having me.
Speaker 6: You're right.
Speaker 10: We have seen some images coming from the LA Times
Speaker 10: of soldiers looking like they're leaving the twenty nine Palms
Speaker 10: base and heading to Los Angeles, and a big caravan
Speaker 10: of buses. So far, it is, as you mentioned, highly unusual.
Speaker 10: It's highly unusual for the president to deploy National Guard
Speaker 10: without a request from the state governor or from a
Speaker 10: local mayor. That hasn't happened since the nineteen sixties. It's
Speaker 10: even more unusual to be putting active duty troops, and
Speaker 10: there's a lot of legal restrictions about how you do that.
Speaker 6: The president.
Speaker 10: The president is using this provision of US law that
Speaker 10: allows the domestic deployment of troops in the case of
Speaker 10: invasion by a foreign nation, a rebellion, or the danger
Speaker 10: of a rebellion, and that's one of the things California
Speaker 10: officials are immediately taking taking putting a question to saying
Speaker 10: that there really is there's no there's no invasion, and
Speaker 10: there's no rebellion. These are are legal protests, they're saying.
Speaker 10: We did see on Monday that things seem to have,
Speaker 10: i want to say, calmed down a little bit from
Speaker 10: the weekend when you saw those waymo cars getting burned
Speaker 10: and more people having disputes or being fighting back and
Speaker 10: forth with authorities. So it was a relatively calm more
Speaker 10: day compared to the weekend. But as you said, these
Speaker 10: troops are look like they're heading for Los Angeles, and
Speaker 10: you still have several hundred National Guard forces on the streets.
Speaker 6: Now.
Speaker 3: Yeah, indeed, because this has been part of the debate,
Speaker 3: is that while the Trump administration claims the situation is
Speaker 3: bad enough to warrant having marines in there, what is
Speaker 3: happening on the ground appears to be much more limited
Speaker 3: and certainly scattered being the word that our colleagues in
Speaker 3: Los Angeles have used to describe the protests that have
Speaker 3: happened in the past twenty four hours. Took us through
Speaker 3: what the Californian officials, Governor Gavin Newsom and the mayor
Speaker 3: of La Karen Bass, have been saying about this.
Speaker 10: Well, they're saying that it's the federal response that has
Speaker 10: actually made the situation worse. It's helped provoke some of
Speaker 10: the people who are out on the streets at this point,
Speaker 10: and even local officials La the LA Sheriff saying that,
Speaker 10: you know, things weren't looking great, but officials, local authorities
Speaker 10: had it under control and they're you know, they've sued
Speaker 10: local the California officials have now sued the federal government
Speaker 10: over its response. It's not clear how long that will
Speaker 10: take to play out in the court, but as we've seen,
Speaker 10: you know, I don't think the White House and the
Speaker 10: Trump administration has really been deterred by the threat of
Speaker 10: lawsuits so far. So I think, you know, California officials
Speaker 10: are hoping they can get this de escalated and prevent
Speaker 10: any more violence before these marines arrive, before there's any
Speaker 10: kind of more and more of a deployment on the
Speaker 10: streets of Los Angeles.
Speaker 2: And yet again it seems to be a major decision
Speaker 2: that may come down to a judge in terms of
Speaker 2: the kind of legal action.
Speaker 10: Yeah. Absolutely, I mean, it's definitely it's definitely the style
Speaker 10: of the Trump administration to sort of push up against
Speaker 10: legal boundaries and then fight to see if what they've
Speaker 10: done can be accepted by the courts. We've seen that
Speaker 10: throughout this battle over immigration. We've seen it when it
Speaker 10: comes to foreign students in the US studying in American colleges.
Speaker 10: We've seen it in the fight with the universities like
Speaker 10: Harvard and Columbia. It is, you know, this is a
Speaker 10: maximalist presidency, and the White House does focus on seeing,
Speaker 10: you know, where exactly the boundaries to their authorities and
Speaker 10: powers are.
Speaker 3: But another story that even monitoring for us this morning
Speaker 3: has been the US China trade talks happening here in
Speaker 3: London heading into a second day today, Are there any
Speaker 3: signs of progress?
Speaker 10: Well, the fact that I think there's a second day
Speaker 10: of talks is probably some sign of progress. You had
Speaker 10: I think six hours of discussions yesterday. It went till
Speaker 10: about eight pm London time there restarting today. President Trump
Speaker 10: was out earlier saying he thinks the US is doing
Speaker 10: well with China, but he said China's not easy. It's
Speaker 10: the second time in the last couple of weeks he's
Speaker 10: talked about the difficulties of negotiating with China, but talks
Speaker 10: expected to continue today. There is some reporting from our
Speaker 10: side that China may ease those restrictions on rare earth shipments,
Speaker 10: and in turn, the Trump administration would look at easing
Speaker 10: some of the measures they've put in, most recently that
Speaker 10: targeted chip design software sales to China, as well as
Speaker 10: the sale of jet engine parts that China really needs.
Speaker 10: So both sides seeming to potentially give up something here
Speaker 10: to get trade talks back on a better track.
Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the
Speaker 3: stories making news from London to Wall Streets and beyond.
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Speaker 6: I'm Caroline Hepka and I'm Stephen Carroll.
Speaker 3: Join us again tomorrow morning for all the news you
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Speaker 3: Break Europe