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

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Speaker 2: This is the Bloemberg Day ba Qut podcast. Good morning,

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Speaker 2: It's Monday, the sixteenth of February, and Caroline Hepkeut in

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Speaker 2: London and.

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Speaker 1: I'm Stephen Carolin Brussels. Coming up today. The US Secretary

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Speaker 1: of State Marco Rubio delivers a double edged message to

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Speaker 1: Europe on the transatlantic relationship, while the EU's top diplomat

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Speaker 1: says the block will stand by its principles.

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Speaker 2: Warner Brothers Discovery considers reopening sale talks with paramount Skydance.

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Speaker 1: Plus Money Talk and uncertain World triggers a shift in

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Speaker 1: Sweden's thinking on joining the euro twenty three years after

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Speaker 1: the country voted against it.

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

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Speaker 1: One year after US President JD. Vance issued a warning

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Speaker 1: to Europe at the Munich Security Conference, the message from

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Speaker 1: America has been softened slightly. US Secretary of State Marco

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Speaker 1: Rubio told the same event Europe and America's destinies are

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Speaker 1: inter twined. In an interview with Bloomberg, Rubio stressed the

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Speaker 1: ties between the allies.

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Speaker 3: When we come off as urgent or even critical about

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Speaker 3: decisions that Europe has failed to make or made. It

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Speaker 3: is because we care. It is because we understand that

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Speaker 3: ultimately our own fate will be intertwined with what happens

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Speaker 3: with Europe. We want Europe to survive, We want Europe

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Speaker 3: to prosper because we're interconnected in so many different ways,

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Speaker 3: and because our alliance is so critical. But it has

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Speaker 3: to be an alliance of allies that are capable and willing.

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Speaker 1: The US Secretary of State speaking Sloomberg's editor in chief

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Speaker 1: John Micklethwaite at the men Security Conference, but Rubio also

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Speaker 1: doubled down on parts of Vance's message from a year earlier,

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Speaker 1: attacking green spending, high migration, and cultural values. Europe has

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Speaker 1: become increasingly wary of Trump's America, which has threatened to

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Speaker 1: annex Greenland and attempted to cut NATO leaders out of

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Speaker 1: talks with Russia to end the Ukraine War.

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Speaker 2: Well, the European Union's top diplomat, Kayak Kalas, rejected the

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Speaker 2: picture of the bloc's decline painted by the Trump administration.

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Speaker 2: Challas noted that press freedom is greater in the EU

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Speaker 2: than in the US, and she talked about European enlargement.

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Speaker 4: You know, It's very hard for me to believe these accusations,

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Speaker 4: you know, coming from a country that is number two

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Speaker 4: in the Press Freedom Index. Hearing criticism regarding press freedom

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Speaker 4: coming from a country that is fifty eight on this list,

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Speaker 4: it's interesting.

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Speaker 2: Callus added that the EU can work with the US

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Speaker 2: even if they don't see quote eye to eye. Callous

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Speaker 2: is among top European officials who have started talking about

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Speaker 2: a European nuclear strategy as the continent considers defense autonomy

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Speaker 2: from the United States.

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Speaker 1: The UK's Prime Minister ker Starmer says Britain is no

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Speaker 1: longer the country that voted for Braxit. Starmer effectively called

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Speaker 1: time on Britain distancing itself from the EU in his

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Speaker 1: speech at the Munix Security Conference.

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Speaker 4: Ten years on from Brexit.

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Speaker 5: We are not the Britain of the Brexit years.

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Speaker 4: We're a Britain that wants to work with the EU

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Speaker 4: even more closely.

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Speaker 1: Starmer was speaking sitting opposite the EU Commission Chief Arslavanderlyne.

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Speaker 1: He called for closer work on defense financing among European

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Speaker 1: countries and topped up nuclear cooperation plans with France. The

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Speaker 1: attempt to rebuild ties comes as Starmer talked of the

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Speaker 1: need to replace US capabilities.

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Speaker 2: Now onto deals News Warner Brothers it's considering reopening sale

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Speaker 2: talks with Paramount Skydance after receiving it's amended offer. Bloombig

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Speaker 2: understands that members of the Hollywood Studios Board are discussing

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Speaker 2: where the Paramount could offer a path to a superior deal.

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Speaker 2: It's a move that could ignite a second bidding war

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Speaker 2: with Netflix, according to those familiar with the firm's thinking.

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Speaker 2: Bloomberg's Tony Chuchka says the situation is evidence of Paramount's

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Speaker 2: confidence amidst the battle.

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Speaker 6: What it demonstrates is so certainly that Paramount thinks it

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Speaker 6: has staying power in this battle and can yet turn

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Speaker 6: the tide. Members of the Warner Brothers board said to

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Speaker 6: be considering this. The possibility now that the Paramounts guide

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Speaker 6: has offered could actually be the better one.

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Speaker 2: Our Washington Base editor Tony Chichka, speaking after the latest

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Speaker 2: office submission, sources tell Bloeberg the board hasn't decided how

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Speaker 2: to respond and still has a binding agreement with Netflix.

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Speaker 2: Paramounts amended terms addressed several concerns, including a promise to

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Speaker 2: cover the two point eight billion dollar fee oe to

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Speaker 2: Netflix if Warner Brothers terminates their agreement as well.

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Speaker 1: The Trump Admllustration's top sanctions official, John Hurley, is said

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Speaker 1: to leave his post after friction with Treasury Secretary Scott Bessant.

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Speaker 1: Sources of told Bloombergy plans to step down after months

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Speaker 1: of tensions over the tactics and targets of US sanctions policy.

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Speaker 1: It's part of a wider Treasury shakeup that has raised

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Speaker 1: questions officials about the department's stability.

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Speaker 2: To the Winter Olympics now in Italy, where TEAMGB took

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Speaker 2: their record gold medal tally to three. Over the weekend.

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Speaker 2: Matt Western followed up his success in the men's skeleton

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Speaker 2: by taking the mixed team title alongside Tabby Stoker. Charlotte

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Speaker 2: Banks and Hugh Nitingale also combined to claim victory in

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Speaker 2: the mixed team snowboard cross. Danny Chambers is Nightingals former coach.

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Speaker 1: They're in the history books, now, aren't they.

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Speaker 4: They're there. They've made it.

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Speaker 1: As long as long as it continues and they keep

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Speaker 1: forming on, Charlotte and Charlotte will be happy as long as.

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Speaker 6: They're in the spot.

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Speaker 2: The new champion's former coach there as TEAMGB enjoyed their

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Speaker 2: first ever gold on snow.

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Speaker 1: On the markets, we're looking at European stock futures pointing

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Speaker 1: slightly higher this morning, up a tenth of one percent

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Speaker 1: for eurostocks fifty and forty one hundred futures. This morning

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Speaker 1: we do have Chinese markets are closed with in a

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Speaker 1: New Year's holiday. US markets also posed for President's Day.

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Speaker 1: The Bloomberg Dollar Spot Index up a tenth of one percent.

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Speaker 1: Goal price is down one point one percent this morning.

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Speaker 1: Four nine hundred and eighty nine dollars announce.

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Speaker 2: Well in a moment, should your appear leaders be reassured

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Speaker 2: by Marco Rubio's comments about their fates being intertwined with

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Speaker 2: the US, plus why Sweden is rethinking it stants on

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Speaker 2: joining the euro first. Another story caught I right today

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Speaker 2: on the magic returning to the world of magic tricks.

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Speaker 1: Stephen Felix Hammond's been writing about this for Bloomberg Pursuits.

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Speaker 1: It is apparently a craze in New York and I'm

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Speaker 1: sure in plenty of other places as well. Small venue

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Speaker 1: magic show, so he writes about Spanish tradition Danny Dohertes's

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Speaker 1: sellout run in the Brooklyn Magic Venue sixty nine Atlantic.

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Speaker 1: There's only twenty six seats, but because of this kind

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Speaker 1: of performance, close up magic, you need to be close,

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Speaker 1: as the name suggests to the action, and Felix says

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Speaker 1: this is part of a golden age of magic, where

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Speaker 1: sophisticated audience is willing to pay real mone to see

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Speaker 1: the great practitioners of this craft up close and in person.

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Speaker 1: He talks about the joy of being in the room

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Speaker 1: and being astonished, the gaps that people have when the

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Speaker 1: tricks are performed, and he says, when close up magic

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Speaker 1: has done well, it just makes people happy, which you

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Speaker 1: know is kind of difficult thing to quantify, but it's

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Speaker 1: also perhaps a question of something that will all. You know,

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Speaker 1: you gather to pay attention to something, you have a

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Speaker 1: shared reaction to something. It doesn't involve looking at your phone.

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Speaker 1: I mean, you can make the argument for theater as well,

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Speaker 1: but Felix also points out it's quite a lot cheaper

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Speaker 1: than going to the theater in New York.

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Speaker 2: I love that I've been to the Magic Circle here

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Speaker 2: in London, which I love has got a really wacky building,

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Speaker 2: which is fantastic. I get that the thing is magic

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Speaker 2: has to be done really well, and it's very, very

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Speaker 2: difficult to do close up, but I love this idea that, yes,

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Speaker 2: the kind of attention economy means that actually in person

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Speaker 2: events are the thing to do.

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Speaker 1: I've got a link to Felix Felix's piece on our

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Speaker 1: podcast shown Now. Well, let's discuss more now of what

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Speaker 1: we heard from the Innexecurity Conference over the weekend, the

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Speaker 1: US Secretary of State Marco Rubio offering a different tone

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Speaker 1: from last year's speech by JD. Vance, but remaining critical

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Speaker 1: of America's European allies, as I had of Rubio's meeting

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Speaker 1: with the Hungarian Prime Minister Victor Or Band later today,

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Speaker 1: our chief ASA correspondent Roslind Mathson is with us for

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Speaker 1: more on this story. This morning, was the chair of

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Speaker 1: the conference called Marco Rubio's speech a message of reassurance.

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Speaker 1: Was there much in his comments though, both in his

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Speaker 1: speech and his interview with Bloomberg that should reassure European

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Speaker 1: leaders well, As you.

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Speaker 7: Was saying, it was essentially a politer version of what

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Speaker 7: they heard previously from Vice President J. D. Vince, who

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Speaker 7: really tore into Europe over a bunch of things. And

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Speaker 7: Rubio did talk about a common fate, you know, shared

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Speaker 7: civilization between Europe and the US, something that binds them

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Speaker 7: together when they can be proud of even a few

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Speaker 7: jokes about cultural ties, including the Beatles. But he also

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Speaker 7: accused Europe of drifting away from those shared values, and

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Speaker 7: Europe was to blame in essence for a variety of

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Speaker 7: things that wasn't tackling very well, migration, criticizing its limits

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Speaker 7: on free speech, its policies on dealing with climate change,

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Speaker 7: and he said the alliance has to change. So perhaps

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Speaker 7: peddling a slightly softer note on that, but certainly delivering

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Speaker 7: a similar message to Europe that you've been getting from

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Speaker 7: a variety of leaders in the US under the Trump administration.

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Speaker 7: And the risk, of course is Europe still doesn't hear it.

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Speaker 7: Do they want to latch onto anything at all to

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Speaker 7: feel reassured the relationship is solid. As you were saying

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Speaker 7: the Chairman of Munich talking about a cyh of relief

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Speaker 7: that went through the hall over Rebos speech, that they

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Speaker 7: want a sense that everything is okay. Perhaps the midterm

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Speaker 7: elections will deliver the Democrats back into Congress and will

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Speaker 7: be all something of a bad fever dream, but clearly

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Speaker 7: there are underlying structural issues here, and every US official

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Speaker 7: is pointing that out, even if they're using slightly nicer

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Speaker 7: words to do so.

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Speaker 2: Now. That seemed to be the message also from the

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Speaker 2: California Governor Gavin Newsome, who was also at the Mini

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Speaker 2: Security conference, that you know it was going to be

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Speaker 2: short lived to Trump administration, what do you think that

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Speaker 2: all of this means? Though, when it comes to the

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Speaker 2: future of Ukraine.

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Speaker 7: Will Ribio made it clear in his comments that the

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Speaker 7: war will end with negotiation, not because someone wins or

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Speaker 7: loses on the battlefield. It's not on an outcome where

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Speaker 7: someone simply beats the other, you know. And he's repeated

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Speaker 7: that line again that if Donald Trump had been president,

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Speaker 7: this war would never have happened to begin with. He

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Speaker 7: acknowledged the US doesn't know if Russia is serious about

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Speaker 7: ending its war with Ukraine. Again, he's talking about trying to,

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Speaker 7: you know, have a role for the US as a

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Speaker 7: key negotiator, perhaps the only mediator that can bring this

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Speaker 7: war to a close, according to Ribio, but they don't

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Speaker 7: really know what's going on in Russia's thinking, and they

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Speaker 7: don't know how serious Russia is and something there's every

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Speaker 7: evidence that President Vladimir Putin has been dragging the chain

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Speaker 7: for as long as possible getting to a negotiated settlement,

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Speaker 7: and it does suggest that Russia continues to hold some

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Speaker 7: cards there. You know, does Russia need to sign off

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Speaker 7: on all the terms for Ukraine, including Ukraine's own future

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Speaker 7: security arrangements with Europe? For example, this talk of a

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Speaker 7: reassurance force in Ukraine? Does Russia get to veto veto that?

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Speaker 7: And the interest of getting to a deal? Is the

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Speaker 7: US going to be okay with Ukraine seeding territory? So

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Speaker 7: even though the US talks about, you know, this is

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Speaker 7: a horrific war and they want it to end in

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Speaker 7: their eagerness to have that do so, is there a

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Speaker 7: risk again that they allow Russia to come away with

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Speaker 7: something that really benefits Russia.

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Speaker 1: Ros Looking at all of this from your advantage point

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Speaker 1: in Asia as well, You've seen a host of European

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Speaker 1: leaders travel to China in recent weeks trying to build ties.

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Speaker 1: There is this an opportunity for China to take advantage

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Speaker 1: of the weakness in the Transatlantic relationship.

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Speaker 7: Well, China does like to take advantage of all of that.

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Speaker 7: They like to play countries off against each other, so

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Speaker 7: they take advantage of disputes, for example, the tension that

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Speaker 7: we've been seeing between the US and Europe over trade.

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Speaker 7: Can it make the most of all of that, But

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Speaker 7: it is a reflection of what everyone is seeing, and

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Speaker 7: that's the need to diversify your partners for trade and investment,

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Speaker 7: not have all your eggs in the US basket. And

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Speaker 7: even China sees that for itself. So possibly a mutual

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Speaker 7: opportunity here for China to crack open a bit more

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Speaker 7: access to the European market. Of course, the Europeans and

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Speaker 7: a response WI want to crack open more of the

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Speaker 7: China market, and their visits to China are all about

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Speaker 7: achieving that as well, and they are getting some deals

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Speaker 7: out of this. A few signs that China is willing

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Speaker 7: to do that, but only to a point. And certainly

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Speaker 7: there are lots of industries in China that in Europe

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Speaker 7: you'd say would be protected species as a result, and

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Speaker 7: so does this end up being a bit lopsided and

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Speaker 7: do you keep all those other tensions out of the relationship,

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Speaker 7: because there are still concerns about China companies dumping in Europe,

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Speaker 7: national security concerns, control of technology, So a lot of

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Speaker 7: suspicion in that relationship at the same time. So it's

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Speaker 7: a balancing act. But clearly there's a recognition that you

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Speaker 7: have to diversify and for Europe and the UK, China

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Speaker 7: is clearly a part of that.

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Speaker 2: Okay, Rolls, thank you so much for being with us.

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Speaker 2: That is our chief Asia corresp what it was in

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Speaker 2: Matheson talking through well the events of the weekend at

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Speaker 2: the Munich Security Conference. Stay with us. More from Bloomberg

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Speaker 2: dayba Cube coming up after this.

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Speaker 1: A Swedish voter has rejected the idea of joining the

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Speaker 1: euro in a referendum twenty three years ago, but Donald

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Speaker 1: Trump's America First foreign policy has triggered a shift in

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Speaker 1: Sweden's views on adopting the single currency. Our Stockholm reporter

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Speaker 1: Charlie Droxsbury joins us now for more on this story. Charlie,

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Speaker 1: why is this debate being reopened now?

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Speaker 5: I think the new element here is the geopolitics of

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Speaker 5: it all. I mean, you've got lawmakers in Sweden looking

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Speaker 5: at the rise of China, looking at nearby Russia, but

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Speaker 5: most recently and probably most significantly, the US claims on Greenland,

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Speaker 5: and they're thinking this might be a good time to

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Speaker 5: kind of bind themselves more closely to a big economic

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Speaker 5: block in the form of the Euro Area.

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Speaker 2: And so one of the key arguments then for and

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Speaker 2: against joining the era.

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Speaker 5: Now I think there's a sort of live debate about

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Speaker 5: the economic arguments boring against. I mean, when Sweden rejected

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Speaker 5: the Euro, it did so because I think people here

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Speaker 5: felt that having their own currency, having their own monetary

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Speaker 5: policy was well suited for an export dependent economy like Sweden.

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Speaker 5: And I think now as a very interesting new report

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Speaker 5: came out in December that sort of relooked at these

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Speaker 5: issues and found that the advantages of being inside the

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Speaker 5: EU Area were actually greater for those states that had

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Speaker 5: joined than expected, and also sort of looking ahead, maybe

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Speaker 5: the advantages of having its own currency and monetary policy

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Speaker 5: for Sweden were probably not as marked looking ahead as

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Speaker 5: previously thought. So you know, you've got an interesting economic

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Speaker 5: debate there.

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Speaker 1: So, I mean, the key thing is is that if

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Speaker 1: this were to be come up as a question, there

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Speaker 1: would be another referendum, and that's what we've heard from politicians.

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Speaker 1: Can this we just public be convinced to support a change.

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Speaker 5: Yeah, that will absolutely be key. There is still a

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Speaker 5: lot of caution when you speak to people here about

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Speaker 5: the Europeople are still hesitant, fresh in the memory of

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Speaker 5: the euro'sone crisis, where worries about the public the sort

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Speaker 5: of state debts of places like Greece where high on

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Speaker 5: the agenda here. And the big challenge for law makecers

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Speaker 5: if they decide to go ahead with a currency shift,

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Speaker 5: and they decide to back it, will be convincing voters

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Speaker 5: that it's not twenty ten anymore and that things are

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Speaker 5: different and the Eurozone is a more stable place than

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Speaker 5: it was then.

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Speaker 1: This is Bloomberg Daybreak Europe. You're morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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