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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg daybaq At podcast. Good morning, It's Thursday,

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Speaker 2: the fourth of December. I'm Caroline Hepga in London and.

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Speaker 3: I'm Stephen Caroline Brussels. Coming up today, Emmanuel Macran and

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Speaker 3: Shotingping meet in Beijing as the two leaders talk economic ties,

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Speaker 3: Ukraine and trade.

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Speaker 2: Meta poaches one of Apple's top designers. As Mark Zuckerberg

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Speaker 2: doubles down on his Ai hardware push.

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Speaker 3: Plus spritzing stateside, Campari pours resources into the US as

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Speaker 3: sales slow and competition rises in Europe.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 3: Francis President Emmanual Macran and Chinese leaders she Jingping have

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Speaker 3: met in Beijing at a time when relations between the

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Speaker 3: EU and China have been under strain. The two leaders

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Speaker 3: discussed issues including economic ties, trade, Taiwan, and the war

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Speaker 3: in Ukraine. She described their talks as frank, fruitful and friendly.

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Speaker 1: Thank you.

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Speaker 4: Today, the world is undergoing profound changes unseen in a

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Speaker 4: century at an accelerated pace, and humanity once again stands

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Speaker 4: at a crossroads. China and France should demonstrate their sense

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Speaker 4: of responsibility uphold the banner of multilateralism, see through the

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Speaker 4: fog of uncertainty, and firmly stand on the right side

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Speaker 4: of history.

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Speaker 3: On the issue of Ukraine, she went on to say

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Speaker 3: that China hopes a fair, binding agreement acceptable to all

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Speaker 3: parties can be reached. Those comments came as macron A

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Speaker 3: renewed his call for she to back Europe's stands on

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Speaker 3: Ukraine and warned against the disaggregation of the world order.

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Speaker 2: Meanwhile, the UK government is poised to approve China's plan

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Speaker 2: for a controversial super embassy on the edge of the

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Speaker 2: city of London. Key British ministers have signaled their satisfaction

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Speaker 2: with Beijing's fa to resolve security concerns over what's expected

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Speaker 2: to be the largest diplomatic compound in Europe. BIOM Big

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Speaker 2: under Sound's top officials from m I five and MI

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Speaker 2: six are in favor of the project going ahead. Former

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Speaker 2: chief of mi I six, Richard more Tol Bloomberg's Michelle

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Speaker 2: has Sein last month that there ought to be a

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Speaker 2: way through for the embassy.

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Speaker 5: Countries obviously have to have embassies, so there's clearly, you know,

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Speaker 5: we need one in Beijing, and it's important that we

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Speaker 5: have that for all those reasons I said to you

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Speaker 5: about having channels open and being able to communicate. So

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Speaker 5: it's right and proper that the Chinese should get their embassy.

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Speaker 5: Whether it's this one or not. It is really not

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Speaker 5: for me.

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Speaker 2: To judge former Chief of m I six Richard Moore.

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Speaker 2: There As the embassy impass has emerged as the biggest

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Speaker 2: stumbling block to improving ties between the UK and China KIS.

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Speaker 2: Some of the Prime Minister scheduled a visit to Beijing

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Speaker 2: and Shanghai at the end of January, days after the

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Speaker 2: new deadline for the embassy's approval. He'd be the first

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Speaker 2: British Prime minister to visit China in eight is.

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Speaker 3: A top institutional investor has said that even if front

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Speaker 3: runner Kevin Hassett is appointed as the next chair of

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Speaker 3: the Federal Reserve, he may not be able to deliver

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Speaker 3: the rapid pace of easing that President Trump would like.

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Speaker 3: Gregory Peters, Co, chief investment officer at PGIM Fixed Income,

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Speaker 3: Till Bloomberg that Hassett wouldn't have the power to deliver

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Speaker 3: cuts on his own.

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Speaker 6: But on one hand, you have the FED independence question,

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Speaker 6: you know, with Hassett as basically tied to the administration.

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Speaker 6: But on the other does he have the credibility within

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Speaker 6: the committee to drive consensus. I don't think he has

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Speaker 6: that credibility. I think that's what the bond market.

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Speaker 4: Is telling you.

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Speaker 6: But it's important to remember that it's a full committee

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Speaker 6: and you have to have the confidence of the committee

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Speaker 6: to drive consensus, and I don't know if he has it.

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Speaker 3: Peter's comments come as bond traders and fund managers game

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Speaker 3: out the impact of Trump's shake up of the FED

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Speaker 3: or hints of policy changes can send ripples through markets.

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Speaker 3: Past is appointed as chair of the Central Bank. Allies

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Speaker 3: of President Trump are said to be also considering making

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Speaker 3: Treasury Secretary Scott Besson the top White House economic advisor.

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Speaker 2: Artificial intelligence will make its debut on one of the

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Speaker 2: world's largest capital markets, but critics say that the enthusiasm

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Speaker 2: surrounding the technology could be dangerous. Bloomberg's Teaba ad a

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Speaker 2: bio has more.

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Speaker 7: The London Stock Exchange Group has agreed a deal to

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Speaker 7: give chat gpt access to its licensed financial news and data.

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Speaker 7: According to a statement, the agreement with open Ai will

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Speaker 7: make LSEG content available to the chatbot's users from December eighth.

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Speaker 7: It's the latest in a series of technology partnerships signed

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Speaker 7: by the data provider, including in agreement with Microsoft to

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Speaker 7: develop AI models, But some are skeptical of the sector's

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Speaker 7: deal making rush. The CEO of research firm Anthropic says

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Speaker 7: a number of companies are being too risky with their

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Speaker 7: AI spending, committing billions of dollars despite growing uncertainty. In London,

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Speaker 7: t we're added by Bloomberg Radio, The.

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Speaker 3: Financial Times is reporting that the European Union's planning a

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Speaker 3: fresh antitrust probe against Meta over the use of artificial

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Speaker 3: intelligence features in WhatsApp. The FT says an announcement of

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Speaker 3: the investigation is possible in the coming days, and the

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Speaker 3: Commission is preparing to open the probe and the way

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Speaker 3: the US company is integrating its Meta AI system into

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Speaker 3: the popular messaging service.

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Speaker 2: Meanwhile, Apple's top designer has been poached by rival Meta

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Speaker 2: in a major coup. Bloomberg understands the Facebook pairent is

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Speaker 2: hiring Alan Dye, who has been head of Apple's user

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Speaker 2: interface design team since twenty fifteen. Our senior tech editor

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Speaker 2: Nick Turner says the move reflects Meta's plan to focus

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Speaker 2: on product design.

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Speaker 1: The big bunshot at Meta is creating an unvetted reality

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Speaker 1: glasses spectacles that would really sort of become a mainspring product,

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Speaker 1: and presumably he's going to be helping work on that.

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Speaker 1: Mostly the design for those products comes from Rayman at

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Speaker 1: the moment, and so I guess we're just still maybe

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Speaker 1: kind of a wait and see mode in terms of

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Speaker 1: figuring out how he's going to influence the way they

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Speaker 1: designed some of those products.

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Speaker 2: Bloomberg's Nick Turner speaking there. Die's departure extends a recent

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Speaker 2: talent exitus for the iPhone maker, which began with the

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Speaker 2: exit of visionary executive Johnny Ive in twenty nineteen. Apple

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Speaker 2: confirmed in a statement provided to Bloomberg News that Die

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Speaker 2: will be replaced with longtime designer Stephen LeMay.

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Speaker 3: And those are your top stories on the markets this morning.

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Speaker 3: The MSCIS Pacific Index up six tens of one percent,

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Speaker 3: being boosted mainly by Japanese shares. The Nikke is up

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Speaker 3: two point two percent. In Tokyo Euros stocks, fifty futures

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Speaker 3: are also six tens of one percent higher this morning.

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Speaker 3: The ten year treasure yield up two basis points at

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Speaker 3: four point zero eight percent.

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Speaker 2: Now, in a moment, we'll bring you the latest on

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Speaker 2: President Macrol's trip to China, what it means for the

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Speaker 2: EU's relationship with Beijing, and why the Cea of Campari

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Speaker 2: is on a mission in America. But before we get

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Speaker 2: to that, there's always another story that catches our eye,

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Speaker 2: and today it's the opinion colonist Leonel Laurent who's asking

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Speaker 2: if quality of life can be a European superpowers.

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Speaker 3: Even yeah, I mean, look, we're all used to this

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Speaker 3: narrative of the decline in Europe's and economic and regulatory heft.

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Speaker 3: It's been getting louder sin Donald Trump returned to the

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Speaker 3: White House. Remember Jamie Diamond telling European leaders earlier this year,

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Speaker 3: you're losing Leonella, suggesting that perhaps that traditional regulatory superpower

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Speaker 3: moniker is being replaced by one of a lifestyle superpower. Now,

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Speaker 3: he points to the date on this income, inequality, social mobility,

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Speaker 3: and life expectancy in the EU are all screening better

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Speaker 3: than in the US, even if GDP doesn't. And there's

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Speaker 3: little in the Europe that, he writes, that compares with

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Speaker 3: the opioid crisis. Cities are safer, Infant mortality is lower

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Speaker 3: European living standards have a far smaller gap than Americans

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Speaker 3: with then, GDP suggests, according to one piece of research

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Speaker 3: that he picked out from the think tank Europa as well,

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Speaker 3: but it's the problem of making higher living standards enough

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Speaker 3: I suppose to be considered a superpower, and also maintaining

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Speaker 3: them in a difficult economic environment.

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Speaker 8: Yeah.

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Speaker 2: Look, I get it, like bashing the European lifestyle, you know,

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Speaker 2: we know is happening, but it is also part of

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Speaker 2: an agenda, isn't it a sort of soft power agenda

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Speaker 2: that is being waged. So I do wonder whether Europe

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Speaker 2: needs to kind of wake up to that messaging and

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Speaker 2: advocate and kind of protect for its own sort of

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Speaker 2: philosophy on life is how i'd put it, and that

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Speaker 2: has been developed over centuries, you know, you think in

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Speaker 2: the Enlightenment, social democracy, language, history, culture, food, all those things.

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Speaker 2: I mean, I think a lot of Europians you know,

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Speaker 2: like that about Europe. But I do think that it

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Speaker 2: is part of this kind of yeah, the change in

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Speaker 2: the world, maybe the different visions of what it is

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Speaker 2: to have a good life.

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Speaker 3: Well indeed, and perhaps we all need to speak up

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Speaker 3: in the prospect of there being pressure being put in

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Speaker 3: this particularly fro An economic point of view. Very interesting piece,

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Speaker 3: well worth reading. Bloomberg dot Com slash Opinion will put

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Speaker 3: a link to Leonel's article in our podcast show notes

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Speaker 3: as well.

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Speaker 2: Now, let's bring the latest on immager in Macon's trip

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Speaker 2: to China and his meeting with President Jijinping, where they've

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Speaker 2: discussed Ukraine and economic ties and really difficult tense issues.

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Speaker 2: Our chief Asia correspondent ros In Matheson joins me for more. Now,

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Speaker 2: was we've heard from both the leaders subtly quite different messaging.

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Speaker 2: What was said about Ukraine. Was there any shift in

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Speaker 2: China's position?

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Speaker 9: Well, not really at least so far when it comes

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Speaker 9: to China. As expected, Macron again urged China to support

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Speaker 9: the European position on Ukraine, which is really the Ukraine

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Speaker 9: position on Ukraine, and to possibly lean more heavily on Russia,

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Speaker 9: using its economic leverage to do so. But it got

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Speaker 9: the usual kind of comments in response really from the

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Speaker 9: Chinese President Sejing paying. He said that China hopes that

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Speaker 9: there can be a fair and binding agreement acceptable to

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Speaker 9: all parties. That's fairly much the standard line from China,

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Speaker 9: and that Beijing will play a constructive role in whatever comes.

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Speaker 9: And again that's pretty much the standard China line, because

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Speaker 9: what we've seen so far through this conflict between Russia

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Speaker 9: and Ukraine is that China hasn't really been that keen

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Speaker 9: to use its economic leverage, which is the key point

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Speaker 9: of pressure on Russia to get it to do anything

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Speaker 9: when it comes to Ukraine. I mean, China doesn't seem

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Speaker 9: particularly enamed of the fact this war is going on

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Speaker 9: and probably once it finished as well, But equally, it

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Speaker 9: doesn't want to disrupt its economic and strategic relationship with

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Speaker 9: Russia too much, so there's no sign that it's been

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Speaker 9: doing that so so far. Really, it's kind of the

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Speaker 9: standard positions that we've seen so far. Macron urging China

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Speaker 9: to bear in mind the Ukrainian point of view, and

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Speaker 9: China just saying that they hope it can be a

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Speaker 9: decency spire for all.

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Speaker 3: On the economic front. Then ras there was talk of

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Speaker 3: pragmatic cooperation, balanced development of trade ties, but how difficult

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Speaker 3: to align. As Ammanuel Macron walking here, he wants more

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Speaker 3: investment from China, as do many European countries, but the

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Speaker 3: relationship between EU and China is quite strained. Over issues

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Speaker 3: I mean ranging from dumping of products to rare earth controls.

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Speaker 9: Well, that's right, So it's a very tricky relationship and

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Speaker 9: a tricky trip for Macron a bit as a result,

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Speaker 9: as you're saying he wants more investment from China into France,

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Speaker 9: he called for that today. We also know he wants

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Speaker 9: to ward China off from putting tariffs on French dairy

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Speaker 9: and pork, and they did sign some corporation agreements today

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Speaker 9: covering areas like natural resources, also cooperation on sort of

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Speaker 9: aviation and biofarma. But at the same time, Macron's been

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Speaker 9: a key one calling out sort of global trade imbalances,

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Speaker 9: and he was one of the taking more of the

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Speaker 9: heart of you on China, urging those tariffs that we

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Speaker 9: saw come on China evs last year, for example. And

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Speaker 9: so balancing all of that out is quite difficult because Macron,

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Speaker 9: like others, recognizes the need to have a diversification of

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Speaker 9: your trade relationships, particularly with what's been happening with the US,

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Speaker 9: so you do need to engage China. But equally he's

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Speaker 9: been quite concerned about imbalances in the relationship and just

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Speaker 9: sort of the idea of unfettered investment potentially from China.

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Speaker 9: So it's a very very difficult line that he's having

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Speaker 9: to walk here during this trip.

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Speaker 2: Yeah, indeed, Wills, thank you so much for being with us.

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Speaker 2: A macro not the only European leader of course going

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Speaker 2: to China. Thanks for being with us, Our chief Asia

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Speaker 2: correspondent Roslyn Mufferson, stay with us. More from Bloomberg Dbacube

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Speaker 2: coming up after this.

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Speaker 3: Now, then e CEO of drinks maker Campari has big

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Speaker 3: ambition for apparel sprits. Simon Hunt wants to make it

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Speaker 3: the drink as much of a mainstay in Texas as

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Speaker 3: it is in Milan or Berlin. It's a key part

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Speaker 3: of his plan to turn around the drinks maker, whose

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Speaker 3: shares have dropped about forty percent in the last two years.

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Speaker 3: Our reporter Antonio so joins us from Milan for more. Antonio,

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Speaker 3: good morning. First of all, tell us about the challenges

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Speaker 3: that Campari has been facing.

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Speaker 8: So good morning, or actually I should say on journo

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Speaker 8: in Italian. So yes, Simon Hunt has been appointed in January,

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Speaker 8: and it's kind of pursuing a strategy to focus on

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Speaker 8: He calls them fewer, bigger bets in the sense, the

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Speaker 8: company has more than seventy brands. Some of them are profitable,

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Speaker 8: others not so much, and so he's focusing on what

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Speaker 8: it calls the champions. And among those, of course, the

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Speaker 8: first one is Aperol, which is, you know, the orange drink.

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Speaker 8: They claim it that it brings the sun into into

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Speaker 8: a glass. The orange color is contagious. And Apperol sales actually,

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Speaker 8: the weight of Apperol sales for for a comparing group

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Speaker 8: rose massively over the last few years. Now it accounts

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Speaker 8: for about twenty five percent. But obviously there are quite

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Speaker 8: a lot of headwinds in the sense that in general

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Speaker 8: drinks industry is facing the wer consumption, and there are

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Speaker 8: structural headwinds like inflation for example. And one element that

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Speaker 8: I would like also to mention is the weather. So

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Speaker 8: if obviously you have a rare any summer, you were

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Speaker 8: not so keen to go out and have an appartibo,

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Speaker 8: and this obviously has an impact on the sales of

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Speaker 8: of the beverage companies in general.

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Speaker 2: Yeah, and Simon Hunt, who became the CEO in January,

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Speaker 2: has also been speaking to Bloomberg's Italian language podcast and

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Speaker 2: Antonio this is where I wish I had learned some Italian.

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Speaker 2: You're going to have to tell me the Italian name

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Speaker 2: the title of the podcast so that our listeners, perhaps

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Speaker 2: are Italian speakers, will be able to download it.

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Speaker 8: Yes, so it's quite locy solo, which literally means money

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Speaker 8: is not telling us. So yeah, So the US, obviously

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Speaker 8: it's a big opportunity for the company because Role is

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Speaker 8: not so popular yet in the country the U s

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Speaker 8: it's typically a beer drinking country. And what what they

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Speaker 8: what they what they're doing is that they're pursuing a

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Speaker 8: strategy where they focus on eleven cities which are the largest,

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Speaker 8: especially in the states of California and New York, Texas

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Speaker 8: and Florida, which are key strategic states for them, and

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Speaker 8: the idea is to kind of erode the market share

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Speaker 8: of of of beer. Then obviously that's not that's not

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Speaker 8: easy because because of the structural headwinds that that we

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Speaker 8: that we mentioned that we mentioned before. So it's basically, uh,

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Speaker 8: you know, putting loads of marketing efforts and advertising effort

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Speaker 8: to to raise kind of awareness over over this brand

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Speaker 8: which is not so popular.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 2: I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all

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