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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: Day Bake podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Thursday, the fourteenth of March in London.

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Speaker 1: I'm Caroline Hepki.

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Speaker 2: And I'm Stephen Carroll. Coming up today. Ukraine strikes Russian

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Speaker 2: oil refineries, the EU backs more weapons for Kiev, and

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Speaker 2: Putin says he's ready for nuclear war.

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Speaker 1: UK ministers say that they will stop foreign states from

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Speaker 1: controlling or influencing British newspapers.

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Speaker 2: Plus playing top trumps, the presumptive Republican presidential nominee floats

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Speaker 2: Hedge Fund titaned John Paulson as a potential Treasury secretary.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: Ukrainian drones have attacked three oil refineries deep within Russian territory.

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Speaker 2: The three facilities account for about twelve percent of Russia's

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Speaker 2: oil processing capacity and have been halted. President Putin says

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Speaker 2: the strikes are aimed at disrupt in his presidential election.

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Speaker 2: Later this week, speaking during a meeting with the US

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Speaker 2: Secretary of State, the European Union's foreign policy chief, Joseph

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Speaker 2: Borel made it clear that Ukraine needs more supports.

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Speaker 3: Ukraine is our biggest and immediate worry for US Europeans

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Speaker 3: and for you too, for our common security, and Russia

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Speaker 3: aggressor will not stop. We have to stop it. You

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Speaker 3: are doing a lot, We are doing a lot. Boats

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Speaker 3: I think we can do still more in order to

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Speaker 3: support Ukrainians in this very challenging time.

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Speaker 2: Josepha has come as EU Ambassador's agreed in principle to

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Speaker 2: provide five billion euros and military support for Ukraine. A

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Speaker 2: much larger sixty billion dollar usaid package remains in political

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Speaker 2: limbo now.

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Speaker 1: Dutch election winner Hurt Fielders has dropped his bid to

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Speaker 1: come prime minister after months of coalition talks. His decision

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Speaker 1: adds to the questions over the political direction of Europe's

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Speaker 1: fifth largest economy. This is nearly four months after his

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Speaker 1: election victory. The far right lawmaker pulled off a surprize

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Speaker 1: victory in the Dutch election last November, with his anti

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Speaker 1: European Union party securing around twenty five percent of parliamentary seats.

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Speaker 2: The UK government says it will ban foreign states from

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Speaker 2: controlling or influencing UK newspapers and news magazines. The proposal

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Speaker 2: from Ministers appears to rule out a UA linked takeover

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Speaker 2: of the Telegraph. The move comes amid growing disquiet and

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Speaker 2: Parliament about the takeover of the nearly one hundred and

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Speaker 2: seventy year old newspaper.

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Speaker 1: After reaching the threshold to secure the Republican nomination in

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Speaker 1: the US presidential race, Donald Trump is now turning his

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Speaker 1: attention to selecting potential cabinet members. On his list is

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Speaker 1: financier John Paulson. Ploomberg's Ed Baxter has the details.

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Speaker 4: These are described as informal talks. So familiar name has

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Speaker 4: come up on the financial sector hedge fund type. John

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Speaker 4: Paulson is Treasury secretary. Now Trump has talked about Paulson, saying,

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Speaker 4: this is a quote John Paulson, the great John Paulson

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Speaker 4: made plenty of money in Nevada. Doesn't live there, makes

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Speaker 4: a hell of a lot of money. He makes money

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Speaker 4: everywhere he goes. Actually, so money machine. Maybe we'll put

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Speaker 4: you know what him at Treasury. You want to make

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Speaker 4: a little money. Nothing, of course, is set in stone,

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Speaker 4: and mister Trump has been known to change his mind.

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Speaker 4: Ed Baxter Bloomberg Radio.

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Speaker 2: The US Treasury Secretary Janet Yellen says market interest rates

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Speaker 2: are unlikely to return to pre pandemic levels. Ten year

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Speaker 2: US treasury yields averaged two point thirty nine percent in

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Speaker 2: the twenty tens, which was low by historical standards. Analysts

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Speaker 2: are split on if they will return to that level

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Speaker 2: after inflation comes down, or if the economy has fundamentally

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Speaker 2: changed post COVID. The debate has major implications for US

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Speaker 2: government spending, with past low rates enabling borrowing spreeze.

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Speaker 1: The fate of an app used by a h hundred

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Speaker 1: and seventy million Americans now lies in the hands of

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Speaker 1: one hundred senators. That's after the US House voted to

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Speaker 1: ban TikTok unless it's Chinese owner, Byte Dance, divests. The

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Speaker 1: proposal now faces numerous concerns and potential revisions that could

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Speaker 1: slow or kill it in the US Senate. TikTok CEO

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Speaker 1: says that the company will fight the decision.

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Speaker 5: Over the last few years, we have invested to keep

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Speaker 5: your data safe and our platform free from outside manipulation.

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Speaker 5: We have committed that we will continue to do so.

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Speaker 5: We will continue to do all we can, including exercising

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Speaker 5: our legal rights, to protect this amazing platform that we

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Speaker 5: have built with you.

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Speaker 1: Shoo Cho, CEO of TikTok, speaking via the app there.

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Speaker 1: So far, the Senate Majority Leader Chuck Schumer has committed

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Speaker 1: only to reviewing the TikTok legislation when it comes to

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Speaker 1: the House.

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Speaker 2: The UK's housing market picked up in February with an

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Speaker 2: increase in buyer inquiries and proper for sale. This is

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Speaker 2: according to the latest data from the Royal Institution for

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Speaker 2: Chartered Surveyors, saying the markets that are three year high

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Speaker 2: for properties on sale. That's as the number of buyer

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Speaker 2: inquiries rose for a second consecutive month. The findings confirm

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Speaker 2: the report from the Nationwide Building Society and Halifax showing

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Speaker 2: that house prices are now a little changed from their

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Speaker 2: peak in twenty twenty two.

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Speaker 1: And those are our top stories for you this morning.

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Speaker 1: On the markets, the MSCI Asia Pacific Index is currently flat,

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Speaker 1: us SOOX at fifty futures this morning, tilting slightly negative.

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Speaker 1: Tenure treasure yields at four point two percent, up a

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Speaker 1: basis point. Those are the markets.

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Speaker 2: In a moment, we'll get more on the latest developments

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Speaker 2: in the Russia Ukraine war and bring you details of

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Speaker 2: the UK government's efforts to limit foreign control of news organizations.

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Speaker 2: Another story that caught our eye this morning about a

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Speaker 2: company that's moving out of Canary Wharf. Another one, Yeah,

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Speaker 2: this is Moody's. Now this is something that we report

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Speaker 2: it back in July that they were looking for somewhere

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Speaker 2: new to move to when they're lead ends at the

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Speaker 2: one Canada Square building, so the pyramid top skyscraper at

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Speaker 2: the center of the Canary Wharf estate. They've now found

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Speaker 2: somewhere on Gresham Street, just behind some poles here in

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Speaker 2: the city, and they're planning to move in twenty twenty six.

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Speaker 2: It's a smaller office. They're looking for somewhere a better third,

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Speaker 2: smaller than their current imprint.

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Speaker 6: Yeah.

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Speaker 1: Absolutely. I mean, you know the nineteen nineties haydiv Canary Wholf.

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Speaker 1: Is that coming to an end or is it simply

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Speaker 1: changing because HSBC going from Canary Wolf also, But is

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Speaker 1: actually that whole area in East London just going to

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Speaker 1: be a new type of retail housing area, even with

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Speaker 1: diagnostics and sort of healthcare type facilities their life sciences also,

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Speaker 1: does actually that whole part of East London have to change?

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Speaker 2: Yeah, exactly. And that's an interesting trend to watch and

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Speaker 2: something that we've seen the owners of the estates where

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Speaker 2: they try to pivot some of the buildings there into

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Speaker 2: new uses. But Mood East the latest to be set

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Speaker 2: to be moving out of their in twenty twenty six.

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Speaker 1: Now that's and our attention to our top story and

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Speaker 1: get the latest on the boar in Ukraine and those

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Speaker 1: drone strikes on three Russian oil refineries Blue makes Tony

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Speaker 1: Halpin joins us now for more. Good morning, Tony. What

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Speaker 1: is the significance then of these strikes and how much

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Speaker 1: will they affect a Russia's war machine? They have had

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Speaker 1: an impact, yes, good morning.

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Speaker 7: It's part of a campaign that Ukraine's been waging the

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Speaker 7: targets infrastructure and industrial facilities with two clear goals. Really,

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Speaker 7: one is to damage Russia's ability to earn money to

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Speaker 7: pay for its war and also its ability to produce material,

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Speaker 7: ore and fuel supplies to support the army on the

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Speaker 7: front lines.

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Speaker 6: Just those three strikes that you mentioned alone.

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Speaker 7: The refineries have a capacity or something like twelve percent

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Speaker 7: of Russia's total capacity. We don't really know how much

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Speaker 7: of that was damaged yesterday, but clearly from a morale

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Speaker 7: point of view, to boost for Ukraine and damaging for.

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Speaker 2: Russia, Tony, as we've heard from Vladimir Putin threatening to

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Speaker 2: use nuclear weapons in case of a threat to Russia's

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Speaker 2: sovereignty or independence. How seriously should we take those threats?

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Speaker 7: I think probably not as much as Putin would like

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Speaker 7: us to take them seriously. It's part of his saber rattling,

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Speaker 7: which he does occasionally to threaten the West and create

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Speaker 7: space for him and his military to.

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Speaker 6: Continue their war in Ukraine.

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Speaker 7: It's a standard Russian position that nuclear weapons would be

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Speaker 7: used if there was a threat to Russia's existence and sovereignty.

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Speaker 6: That's killing no such threat because Putin sits in the Kremlin.

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Speaker 7: But more importantly, Putin did say yesterday that he never

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Speaker 7: thought of using tactical nuclear weapons in Ukraine, which was

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Speaker 7: a much bigger threat and had the West and Native

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Speaker 7: in particular ary concept.

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Speaker 1: We've also had EU ambassadors agreeing to another five billion

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Speaker 1: euros in military support for Ukraine. How far will that

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Speaker 1: go to meeting the need that Kiev's talked about so frequently.

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Speaker 6: Yes, I mean.

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Speaker 7: They're having real trouble supplying their military on the front

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Speaker 7: lines with sufficient munitions because of delays in aid from

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Speaker 7: Europe and the US. So this money is going towards

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Speaker 7: Kiov's urgent needs and things like artillery, munitions, drones and

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Speaker 7: air defense, and it will certainly be a help. But

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Speaker 7: what Ukraine is really waiting on is more than sixty

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Speaker 7: billion dollars of US military aid, which has been stuck

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Speaker 7: in Congress for months, and there's no sign that that's

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Speaker 7: going to be released anytime soon.

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Speaker 2: Tony. It feels like we've been talking so much in

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Speaker 2: recent times about the military needs of Ukraine in this conflict. Meanwhile,

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Speaker 2: is there any hope of the conflict moving towards an end?

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Speaker 2: Is there any sign of progress in that direction?

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Speaker 6: Very, frankly, not much.

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Speaker 7: Put In gave an interview to State television yesterday ahead

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Speaker 7: of his election campaign this weekend, basically said that Russia

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Speaker 7: was open to discussions, but ones that took account of

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Speaker 7: realities on the ground, and that's just simply Russian code

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Speaker 7: for saying we want to keep what we've invaded and

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Speaker 7: have managed to hold on to. That's a position that's

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Speaker 7: unacceptable to Ukraine and to Ukraine's allies. And there's no

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Speaker 7: sign really of any talks that we'll be leading to

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Speaker 7: some kind of negotiations and a deal.

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Speaker 6: To win the fight.

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Speaker 1: Okay, Tony Halpin, thank you so much for being with

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Speaker 1: us this morning. Then taking us through the latest on

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Speaker 1: Ukraine and the war with Russia. Bloomberg's Tony Halpin.

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Speaker 2: Back here in the UK, the government is planning to

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Speaker 2: ban foreign states from owning or controlling British newspapers and

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Speaker 2: news magazines. The Culture Minister, Stephen Parkinson confirmed reports the

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Speaker 2: government would Titan Competition legislation currently passing through Parliament, and

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Speaker 2: this would appear to rule out the takeover of the

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Speaker 2: Daily Telegraph newspaper and Spectator magazine by the UA backed

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Speaker 2: Redbird IMI. Joining us now to discuss as our UK

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Speaker 2: politics supporter James Willcock. James, what are the proposed changes

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Speaker 2: then to the Digital Markets Act that would be relevant

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Speaker 2: to this area?

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Speaker 8: So they're not actually on paper, Steven, which we'll get

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Speaker 8: to a few regularities that we'll see. But what they

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Speaker 8: announced in the House of Lords, this is a Culture Secretary,

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Speaker 8: Lord Parker, was that any influence or controlling stake by

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Speaker 8: a foreign state, crucially state not company I sort of

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Speaker 8: Rupert Murdoch's News Corp would be fine. Is would be

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Speaker 8: blocked by the government and that would just be a

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Speaker 8: thing that would happen in future. If a foreign state

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Speaker 8: were to make a bid for a UK newspaper, there

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Speaker 8: would be an investigation by CMA or off GEM or

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Speaker 8: off Common sorry into that outlet and if it was

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Speaker 8: a foreign state, and if it were the Minister would

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Speaker 8: be compelled to unwind it. It would just simply be blocked.

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Speaker 8: The bit that we don't know is how much is

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Speaker 8: a foreign state this is a controlling interest? Is it

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Speaker 8: twenty five percent? Is it fifty percent? Certainly though it

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Speaker 8: would spell doom for the current planned acquisition of Redbird

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Speaker 8: of the Telegraph Media Group.

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Speaker 1: Yeah. There is also an interesting addition angle to this

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Speaker 1: that it is newspapers and news magazines, but it is

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Speaker 1: not online. It's not not any digital assets for example.

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Speaker 1: I mean what does it mean for the Telegraph? What

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Speaker 1: does it mean for the media landscape?

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Speaker 8: I mean the way I take that, Caroline is when

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Speaker 8: we look at kind of the balance of the UK's

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Speaker 8: national security legislation how it looks at foreign takeover companies,

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Speaker 8: that this move has been extremely ad hoc in nature,

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Speaker 8: and this is a targeted move that is almost effectively

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Speaker 8: designed like a guided missile to take on the Telegraph

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Speaker 8: and no other company at all, now other broadcaster, it

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Speaker 8: doesn't affect them. It is specifically for the Telegraph as

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Speaker 8: a law. And in that sense it speaks not to

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Speaker 8: the UK's big strategic thinking on foreign ownership, but the

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Speaker 8: chaos and the Conservative Party and Prime Minister Richard's inability

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Speaker 8: to kind of set the political weather in this debate.

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Speaker 8: He has been led by his MPs and what they

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Speaker 8: want and so that is why they're It's it's almost

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Speaker 8: difficult to comment on what it says about the UK's

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Speaker 8: foreign ownership rules. It's more about what it says about

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Speaker 8: the Conservative Party.

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Speaker 2: Is the UK then trying to strike a balance here

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Speaker 2: and in given that the UAE doesn't have a free

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Speaker 2: press and isn't isn't a place where you know that

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Speaker 2: the media is supported in that way? Is this a

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Speaker 2: question of getting a balance right?

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Speaker 8: I mean, just to generally push back on this. Even

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Speaker 8: this is almost not a debate for the UK government.

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Speaker 8: It's a debate for UK Conservative MPs. And what happened

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Speaker 8: here is this a member was announced in the Lords

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Speaker 8: after the former Tory Lord is of the head of

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Speaker 8: the Lord's Baroness Stowell brought an amendment to bring this

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Speaker 8: about the Conservative backbenches and lords forced this issue onto

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Speaker 8: the agenda by bringing this amendment and then there were

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Speaker 8: enough MPs in the Commons that would back this. They

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Speaker 8: reckon about one hundre conserved MPs that the UK Government

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Speaker 8: felt it would lose any vote on this amendment. So

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Speaker 8: to sort of I know, we're very deep in the

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Speaker 8: Westminster weeds here, but what has happened is concern richly

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Speaker 8: seen that government have had to bring in this law

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Speaker 8: to fend off and move from behind from their own

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Speaker 8: MPs to dump this and stop the telegraph happening. So

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Speaker 8: it is it's strange to comment on what this says

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Speaker 8: about the future of UK a foreign ownership, when really

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Speaker 8: we should be looking at what this says about the

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Speaker 8: state of the Conservative Party.

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Speaker 1: And that in and of itself is part of the

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Speaker 1: criticism and the concern that it probably is not great

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Speaker 1: policy and great law, you know, to make a piece

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Speaker 1: of legislation in reaction quite kneeje reaction to one event

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Speaker 1: or one thing that is happening. What does it mean then,

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Speaker 1: overall for what happens to the telegraph and the spectator

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Speaker 1: if it is so specifically about this one particular deal so.

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Speaker 8: There are a few options on the table, right. There's

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Speaker 8: the one that Bloomberg report earlier this week that maybe,

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Speaker 8: depending on what this legislation says, a lower stake would

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Speaker 8: be amenable. And then if there were some kind of

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Speaker 8: talks or tie up between some of the other bidders

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Speaker 8: looking at Daily Mail, General Trust or looking at maybe

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Speaker 8: sort of News Corp, possibly even the Poor Marshall group,

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Speaker 8: though that wasn't part of the talks that we've reported,

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Speaker 8: that might be amenable to the ministers. Lucy Fraser the

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Speaker 8: culture is set to ruin this steal anyway, because she

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Speaker 8: has the power to block it or defer it regardless already,

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Speaker 8: just whether she chooses to exercise said power or maybe

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Speaker 8: Redbird and their UA linked bid will just get a

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Speaker 8: bit frankly upset with the amounts of sort of red

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Speaker 8: tape they've been tied up in and sort of disdain

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Speaker 8: that they've been shown for any willingness to bid to

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Speaker 8: this and abandon the bid entirely. All this means that

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Speaker 8: if you're working at the Telegraph or trying to run

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Speaker 8: a business strategy for Telegraph in the meantime, you're left

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Speaker 8: in limbo and certain about the group's future and ownership structure.

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