WEBVTT - SpaceX Spooks Investors, Secret Ukraine War Talks, Nuclear Reactors Run Dry 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.440 --> 0:00:12.440 This is the Bloomberg Dapic. Your podcast Goodborning is Wednesday, 0:00:12.440 --> 0:00:15.280 the fifth of August. I'm Caroline Hepka in London. 0:00:15.160 --> 0:00:18.520 And I'm Stephen Caroline Brussels. Coming up today. Building the 0:00:18.600 --> 0:00:23.000 Future Isn't cheap. SpaceX's AI splurge puts a dampner on 0:00:23.040 --> 0:00:25.439 its first set of earnings since going public. 0:00:25.720 --> 0:00:29.560 Bloomberg lands that former European and Russian officials have held 0:00:29.600 --> 0:00:31.880 secret talks on the war in Ukraine. 0:00:32.120 --> 0:00:35.640 Plus why nuclear plants in Romania and Hungary may need 0:00:35.680 --> 0:00:38.120 to be shut down because there's not enough water in 0:00:38.159 --> 0:00:40.120 the Danube River to cool them. 0:00:40.360 --> 0:00:42.240 Let's start with a round up of our top stories. 0:00:42.320 --> 0:00:45.640 SpaceX shares fell over seven percent and after ours, US 0:00:45.760 --> 0:00:50.280 trading has higher AI spending overshadowed better than expected quarterly results. 0:00:50.640 --> 0:00:53.760 Revenue beat estimates at seven point eight billion dollars, while 0:00:53.760 --> 0:00:57.520 the company posted eight smaller than expected loss. However, capital 0:00:57.560 --> 0:01:00.680 spending sword as Elon Musk pushes ahead with his AI 0:01:00.800 --> 0:01:04.520 and space ambitions. Bloomberg Tex' Ed Ludlow has the details. 0:01:05.520 --> 0:01:08.840 SpaceX spent a staggering eighteen point four billion dollars in 0:01:08.880 --> 0:01:11.520 the quarter and the vast majority of that eighty six 0:01:11.560 --> 0:01:15.679 percent was on AI infrastructure. But renting out compute capacity 0:01:15.760 --> 0:01:18.760 or computing power to companies like Google and Thropic is 0:01:18.800 --> 0:01:21.200 becoming a major business, and they gave lots of evidence 0:01:21.240 --> 0:01:24.880 of that. Second, like where is the growth? SpaceX said 0:01:24.920 --> 0:01:28.319 they will hit one hundred billion dollars in annual revenue 0:01:28.400 --> 0:01:29.720 run er EATE by the end of this year, and 0:01:29.800 --> 0:01:32.440 Musk even went a step further saying they have line 0:01:32.440 --> 0:01:36.280 of sight like complete confidence that SpaceX will hit one 0:01:36.400 --> 0:01:39.679 trillion dollars of real revenue in twenty thirty. 0:01:40.360 --> 0:01:43.760 Ed Ludlow says SpaceX's results kappa roller coaster rides. Since 0:01:43.760 --> 0:01:47.600 the company's records stock market debut in June, post IPO, 0:01:47.680 --> 0:01:51.440 volatility has wiped more than one trillion dollars from SpaceX's 0:01:51.480 --> 0:01:55.240 market value, ending elon Musk's brief run as the world's 0:01:55.320 --> 0:01:56.440 first trillionaire. 0:01:57.200 --> 0:02:00.800 Meanwhile, AMD shares plunged almost nine ten percent in late 0:02:00.840 --> 0:02:04.200 trading after the chip maker's sales outlook failed to match 0:02:04.240 --> 0:02:08.600 investors lofty expectations. The company says it expects third quarter 0:02:08.639 --> 0:02:13.720 revenue of about thirteen billion dollars with AI valuations so high. 0:02:13.840 --> 0:02:17.640 Our Market's reporter Anthony Stephens says that even great results 0:02:17.720 --> 0:02:18.919 are no longer good enough. 0:02:20.400 --> 0:02:22.600 Some of the stock based reaction has to be put 0:02:22.639 --> 0:02:24.959 into context with the year to date performance of that stock. 0:02:25.040 --> 0:02:27.160 That stock is up triple digits, so it's up aroun 0:02:27.120 --> 0:02:28.720 one hundred and forty percent year to date. It's on 0:02:28.800 --> 0:02:32.040 eight percent replacement. When the earnings fail to clear the 0:02:32.080 --> 0:02:34.800 best estimates is kind of understandable. 0:02:35.520 --> 0:02:39.440 Anthony Stephens on AMD's results, which come just weeks after 0:02:39.480 --> 0:02:42.560 COEO Lisa Sue unveiled a new AI chip that the 0:02:42.600 --> 0:02:45.079 company believes will outperform and videos. 0:02:46.840 --> 0:02:50.400 Recent tests on AI technology have revealed some parts carried 0:02:50.400 --> 0:02:55.000 out unsanctioned actions. According to a UK government organization. The 0:02:55.160 --> 0:02:58.239 findings have led to calls for more oversight and rigorous 0:02:58.360 --> 0:03:01.000 safety training of the technology. The Blue Work's tawa at 0:03:01.000 --> 0:03:03.000 A Bio has more AI. 0:03:02.720 --> 0:03:08.079 Models developed by OpenAI and Anthropic engaged in potentially harmful activity, 0:03:08.400 --> 0:03:13.040 including creating fake identities and writing malicious code. That's according 0:03:13.040 --> 0:03:16.440 to the UK's AI Security Institute, which shared the conclusions 0:03:16.440 --> 0:03:20.560 from its latest evaluation earlier this week. During testing, the 0:03:20.600 --> 0:03:24.560 institute intentionally allowed the model's Internet access and used them 0:03:24.600 --> 0:03:28.280 without certain safety filters to test their capabilities. In a 0:03:28.360 --> 0:03:30.760 post on social media, the body said the results are 0:03:30.760 --> 0:03:33.320 the first time they have seen the risks around autonomy 0:03:33.360 --> 0:03:37.400 and deception manifest so clearly in the real world. The 0:03:37.440 --> 0:03:40.240 news comes as Bloomberg understands the White House has told 0:03:40.280 --> 0:03:44.160 top USAI companies that Chinese open weight models won't be 0:03:44.200 --> 0:03:48.400 subject to testing under the government's new safety framework. In London, 0:03:48.440 --> 0:03:50.520 ta At a bio Bloomberg Radio. 0:03:51.280 --> 0:03:53.560 Hopes are arising that the US in Iran could be 0:03:53.640 --> 0:03:56.960 close to an interim agreement to reopen the Strait of Homer's. 0:03:57.240 --> 0:04:01.440 President Trump told reporters that talks are moving along very nicely, 0:04:01.760 --> 0:04:05.160 adding will know in forty eight hours, and speaking to 0:04:05.200 --> 0:04:09.160 Fox News in a separate interview recorded earlier on Tuesday, 0:04:09.200 --> 0:04:11.840 the US President had this to say on the talks. 0:04:12.960 --> 0:04:15.240 The strait's going to be opened very soon, or they're 0:04:15.240 --> 0:04:17.200 going to get hit very hard, and then the street's 0:04:17.240 --> 0:04:19.279 going to be open. And we were going to a 0:04:19.360 --> 0:04:22.640 tremendous attack, the biggest since World War Two. And they 0:04:22.680 --> 0:04:26.680 called me and said, very politely, please can we talk? 0:04:26.720 --> 0:04:29.960 Can we talk that in one And I said, yes, 0:04:30.000 --> 0:04:33.240 we could talk. Let's get it done. Finally, let's get 0:04:33.240 --> 0:04:33.880 it done. 0:04:35.080 --> 0:04:38.960 The US president there, speaking to Fox News as Axios 0:04:39.040 --> 0:04:42.400 reports that the US, Yron, and Oman could announce a 0:04:42.480 --> 0:04:46.400 temporary agreement as soon as today. The proposal would reopen 0:04:46.440 --> 0:04:50.080 shipping through the strategic Waterway under a sixty day arrangement, 0:04:50.600 --> 0:04:54.200 but US and Katari officials cautioned there's still no agreement 0:04:54.240 --> 0:04:58.360 despite growing optimism, and while a short term deal could 0:04:58.360 --> 0:05:01.880 help normalize commercial ship in the Strait, it might still 0:05:02.000 --> 0:05:05.080 fail to end the war or resolve President Trump's concerns 0:05:05.120 --> 0:05:07.680 about Iran's nuclear program. 0:05:08.240 --> 0:05:12.560 Bloomberg has learned that former senior officials from Russia, the UK, France, 0:05:12.640 --> 0:05:16.200 and Germany privately met in Vienna to explore ways to 0:05:16.360 --> 0:05:19.160 end the war in Ukraine. Are reporting on The gathering 0:05:19.200 --> 0:05:21.400 comes as Europe's three biggest powers have been working on 0:05:21.480 --> 0:05:25.040 ways to establish direct contact with the Kremlin. Bloomberg Exchanmes 0:05:25.040 --> 0:05:26.120 Wilcock has more. 0:05:26.520 --> 0:05:29.680 It's not unknown for former officials to engage in informal 0:05:29.760 --> 0:05:33.520 diplomatic talks at arm's lengths from their governments. These so 0:05:33.640 --> 0:05:37.120 called Track two meetings aimed to exchange ideas that might 0:05:37.240 --> 0:05:41.680 later feedback into government channels. Now all four countries either 0:05:41.720 --> 0:05:44.479 declined to comment or told Bloomberg they were not aware 0:05:44.560 --> 0:05:47.680 of those discussions between some of their seasoned diplomats and 0:05:47.760 --> 0:05:51.240 former national security officials which happened last month in Vienna. 0:05:51.520 --> 0:05:53.920 But the news of the meeting comes as Europe tries 0:05:53.960 --> 0:05:56.480 to take a big role in discussions with Russia, which 0:05:56.520 --> 0:05:59.400 so far have been dominated by the US. In London, 0:05:59.760 --> 0:06:01.440 walk Gradient. 0:06:01.680 --> 0:06:03.520 And just one of the new story of note, the 0:06:03.600 --> 0:06:06.560 UK's Foreign Secretary at Miliban travels to Washington, d C. 0:06:06.760 --> 0:06:09.640 Today for the first time since taking office. Miliband and 0:06:09.680 --> 0:06:12.640 the US Secretary of State Marco Rubi are expected to 0:06:12.640 --> 0:06:16.480 discuss reopening the Strait of Hormuz and Ukraine. The latest 0:06:16.480 --> 0:06:19.360 polling shows at Miliband's Labor Party is riding a wave 0:06:19.400 --> 0:06:22.840 of optimism under new leader Andy Burnham. The left wing 0:06:22.880 --> 0:06:26.400 party has overtaken Niger Faraja's Reform UK for the first 0:06:26.400 --> 0:06:30.560 time in a year, according to the pollster JL Partners. 0:06:31.000 --> 0:06:34.320 And those are our top stories for you this morning. Now, 0:06:34.320 --> 0:06:37.360 in terms of the stocks that we're looking at today, 0:06:37.400 --> 0:06:40.440 Asian equities are climbing. They are now at their highest 0:06:40.480 --> 0:06:41.960 levels that we've seen in about a month. So the 0:06:42.040 --> 0:06:45.720 Cosby this morning is up by four point five percent. 0:06:45.760 --> 0:06:48.240 The MSCIAS PACIFICI Index up by two point one percent. 0:06:48.279 --> 0:06:51.800 Remember yesterday European and US stocks clothes at record high. 0:06:51.800 --> 0:06:54.560 It's the stock six hundred actually adding seven tenths of 0:06:54.640 --> 0:06:56.960 one percent of the clothes. With the mining rally and 0:06:57.320 --> 0:07:01.680 very positive earnings. The oil this morning retreating half of 0:07:01.680 --> 0:07:04.440 one percent. The seventy eight dollars ninety three now for 0:07:04.480 --> 0:07:08.000 breakthrough futures as the dollars also dropped on this optimism 0:07:08.279 --> 0:07:13.240 over an interim US deal. And then watching also bond markets, 0:07:13.480 --> 0:07:15.720 especially on the long end of the curve given recent 0:07:15.800 --> 0:07:17.800 run ups. Looking at that thirty year long bond in 0:07:17.840 --> 0:07:20.400 the US with down almost two basis points this morning 0:07:20.400 --> 0:07:23.680 at five sixteen. Those are the markets now. 0:07:23.680 --> 0:07:25.320 In a moment, we'll bring you more on what we 0:07:25.400 --> 0:07:28.320 learned from SpaceX's first quarterly results as a public company, 0:07:28.320 --> 0:07:30.520 plus how the drop on the level of the Danube 0:07:30.600 --> 0:07:33.120 River is posing a high risk to economies in central 0:07:33.440 --> 0:07:36.320 and southeastern Europe. The first a word on another story 0:07:36.320 --> 0:07:38.320 that we've been reading this morning are new ways to 0:07:38.440 --> 0:07:43.200 cool down as temperatures rise. Yue Jisebe has been writing 0:07:43.280 --> 0:07:46.440 about a new kind of innovation from Japan, a sort 0:07:46.480 --> 0:07:50.640 of fridge for humans. The dough Heimen box is about 0:07:50.640 --> 0:07:52.880 the size of a phone box if you're also remember 0:07:52.920 --> 0:07:54.840 what those are. It has a glass door and a 0:07:54.880 --> 0:07:57.760 seat inside, and it's cold, most importantly, are in fifteen 0:07:57.800 --> 0:08:01.360 degrees and blows jets of five degrees air when someone 0:08:01.400 --> 0:08:04.920 sits down inside it. Now it's designed to offer quick 0:08:04.960 --> 0:08:08.760 relief from potential heat exhaustion or heat stroke in places 0:08:08.800 --> 0:08:11.600 where our conditioning might not be available, think construction sites 0:08:11.600 --> 0:08:14.800 are particularly crowded venues. The company actually sent them to 0:08:14.840 --> 0:08:19.160 evacuation shelters after last week's earthquake in Japan. Now they 0:08:19.200 --> 0:08:21.640 sell for around nine five hundred dollars. They could be 0:08:21.640 --> 0:08:24.800 plugged in like any appliance. But this is another example 0:08:24.840 --> 0:08:27.680 of how places like Japan are dealing with hotter and 0:08:27.800 --> 0:08:31.120 more humid summers as well. I mean it's it's I 0:08:31.160 --> 0:08:33.240 don't think it's a sort of a pleasant place to 0:08:33.240 --> 0:08:35.839 spend time so much as perhaps something it's becoming a 0:08:35.840 --> 0:08:39.160 little bit more essential in these extreme temperatures. But it 0:08:39.280 --> 0:08:42.360 is a solution, if a slightly odd one to look at. 0:08:43.120 --> 0:08:44.559 It is a bit funny to look cat, mind you 0:08:44.559 --> 0:08:47.520 I've seen heat cabins like that kind of sauna. So 0:08:47.600 --> 0:08:50.920 this is like the opposite soy to cool you down. 0:08:51.840 --> 0:08:55.199 I mean, yes, I can understand why, especially as you say, 0:08:55.200 --> 0:08:59.000 in places where they might not be ac and you 0:08:59.000 --> 0:09:01.559 know a lot of con who's worried about heat related 0:09:01.640 --> 0:09:04.080 death in Japan and South Korea going through this very 0:09:04.200 --> 0:09:07.800 very hot phase. I mean, even making headlines here in 0:09:07.840 --> 0:09:10.400 Europe was the fact that in the Tokyo Zoo the 0:09:10.440 --> 0:09:13.360 heat seems to have killed three lions, and so it's 0:09:13.440 --> 0:09:18.400 humans and animals that is suffering here. And there are also, 0:09:18.520 --> 0:09:23.520 interestingly in Japan apparently tighter regulations that are coming into 0:09:23.640 --> 0:09:26.360 force to try to keep people cool. I mean that's 0:09:26.400 --> 0:09:28.600 a conversation only just beginning in Europe. 0:09:28.640 --> 0:09:28.920 Really. 0:09:29.360 --> 0:09:31.400 Yeah, indeed, and perhaps theres some lessons to be learned 0:09:31.400 --> 0:09:34.160 as well as to how countries like Japan are dealing 0:09:34.160 --> 0:09:37.480 with the changing climate. There to really interesting read about 0:09:37.480 --> 0:09:39.600 this particular innovation, will but link to it in our 0:09:39.640 --> 0:09:43.560 podcast show notes. Well, that's bringing more details now on 0:09:43.600 --> 0:09:45.880 the results from SpaceX. One of the key stories on 0:09:45.960 --> 0:09:49.400 markets shares tumbling over seven percent and after ours trading, 0:09:49.480 --> 0:09:52.679 our aerospace reporter Lina Rashdan joins us now from Mora Lean. 0:09:52.760 --> 0:09:57.440 Good morning, investors, focusing on the AI capital expenditure numbers 0:09:57.440 --> 0:09:59.200 from SpaceX. What didn't they like? 0:10:00.320 --> 0:10:03.960 The stock is already under pressure, it's fallen below its 0:10:04.040 --> 0:10:07.199 IPO price, and that always kind of bursts the bubble 0:10:07.240 --> 0:10:10.840 that bankers and the company has built around, you know, 0:10:10.880 --> 0:10:13.760 the appetite for the shares. We also have about one 0:10:13.840 --> 0:10:18.520 hundred billion ensures that are about to be eligible to sell, 0:10:18.960 --> 0:10:22.680 so you can see where like investors were looking to 0:10:22.760 --> 0:10:26.280 the earnings, and a main focus was the expenses around 0:10:26.280 --> 0:10:29.160 the business, because that's a huge part of the company 0:10:29.440 --> 0:10:34.400 and because of how capital intensive that division is. So 0:10:34.679 --> 0:10:38.000 it almost doubled the figure to the figure for those 0:10:38.000 --> 0:10:42.560 expenses doubled to fifteen point eight billion, and that's a 0:10:42.559 --> 0:10:46.400 few billion more than analysts expected. And the company also 0:10:46.480 --> 0:10:49.080 said that these expenses will continue in the third and 0:10:49.120 --> 0:10:53.120 fourth quarter. So investors didn't react well to those figures. 0:10:53.360 --> 0:10:57.120 Okay, So then in terms of the underlying business performance, 0:10:57.120 --> 0:10:59.600 because this is the other unusual thing about SpaceX, I mean, 0:10:59.600 --> 0:11:02.640 these huge lofty ambitions based on things that are yet 0:11:02.679 --> 0:11:05.640 to come in the future. And then actually the nuts 0:11:05.640 --> 0:11:07.600 and bolts of what is making money? 0:11:08.040 --> 0:11:13.240 They accompanied it. Overall, well, the Bea revenue estimates, the 0:11:13.400 --> 0:11:16.240 loss per share came in at nine unless had expected 0:11:16.280 --> 0:11:20.960 twenty four, So overall those numbers were good. Then we 0:11:21.040 --> 0:11:24.920 have the Startling subscriptions, which fell slightly below endless estimates, 0:11:24.920 --> 0:11:27.960 and that's the only profitable part of the business. But 0:11:28.520 --> 0:11:30.520 on the other hand, we have some of the executives 0:11:30.559 --> 0:11:33.680 that kind of touted the new market that the company 0:11:33.720 --> 0:11:37.920 Startling could enter, and that's for mobile services. So they 0:11:37.960 --> 0:11:40.800 said they could compete with AT and T and Verizon 0:11:41.040 --> 0:11:43.880 and they could unlock revenue that could be hundreds of 0:11:43.880 --> 0:11:48.600 billions a year. So that kind of gave investors more hope. 0:11:48.600 --> 0:11:51.520 That kind of cleared a path for that business for 0:11:52.320 --> 0:11:54.880 consumer Wife to be a consumer wireless operator, which we 0:11:54.920 --> 0:11:55.960 didn't really have before. 0:11:56.920 --> 0:11:58.360 We also heard, of course, may a lot of mosk 0:11:58.440 --> 0:12:01.679 on the earnings call as well. Stood out from his comments. 0:12:02.200 --> 0:12:04.320 Well, we couldn't really predict what Mosco was going to 0:12:04.360 --> 0:12:06.319 be saying going into this, but we knew he'd make 0:12:06.360 --> 0:12:12.400 some bold predictions. He said that he expected annual run 0:12:12.520 --> 0:12:16.240 rate revenue to reach one hundred billion by year end. 0:12:17.080 --> 0:12:22.160 Bloomberg Analystslice pulled by Bloomberg expected thirty eight point six billions, 0:12:22.160 --> 0:12:24.440 so you can see that kind of huge divide, but 0:12:24.480 --> 0:12:27.520 he seemed very confident of the number. He said that 0:12:27.520 --> 0:12:29.600 that was in a question mark that they were going 0:12:29.640 --> 0:12:32.120 to achieve that number. They basically, he said, they basically 0:12:32.240 --> 0:12:35.240 could do nothing and reach that figure. He also pulled 0:12:35.280 --> 0:12:40.640 forward the figure for reaching one trillion in revenue by 0:12:40.720 --> 0:12:42.760 twenty thirty, that's a year ahead of schedule. He even 0:12:42.800 --> 0:12:46.000 said they could achieve it by twenty twenty nine. Anless 0:12:46.040 --> 0:12:50.520 asked him about Starship, which kind of encapsulates Musque's big 0:12:50.559 --> 0:12:54.160 plans for space, for sending people, for also startling to 0:12:54.200 --> 0:12:58.120 be able to get more satellites up there, and he 0:12:58.200 --> 0:13:02.199 said the decadence of flights would increase rapidly. He said 0:13:02.400 --> 0:13:04.959 the heat shield, which was a concern for some investors 0:13:05.040 --> 0:13:08.400 on the rocket, that it's looking very robust. So that 0:13:08.520 --> 0:13:13.119 also kind of is some concerns. Is confidence in Starship 0:13:13.240 --> 0:13:17.920 and in reaching that revenue. He also touted this the 0:13:18.040 --> 0:13:21.680 larger V three satellites that could be a huge revenue 0:13:21.720 --> 0:13:26.080 generator for Starlink, and he said that that should be 0:13:26.080 --> 0:13:26.920 coming very soon. 0:13:27.559 --> 0:13:30.280 Okay, pretty interesting, Lene, Thank you so much then for 0:13:30.280 --> 0:13:34.360 giving us the assessment then from investment perspective, from the 0:13:34.400 --> 0:13:36.800 analysis of what Mosque had to say. That is our 0:13:36.880 --> 0:13:39.120 aerospace report at lean al lush Dan. 0:13:39.240 --> 0:13:39.640 Thank you. 0:13:41.360 --> 0:13:44.800 Stay with us. More from Bloomberg Daybacube coming up after this. 0:13:48.320 --> 0:13:51.600 The record low levels and the Danube River disrupting shipping 0:13:51.640 --> 0:13:54.920 and crucial power generation along its route in central and 0:13:54.960 --> 0:13:58.320 southeastern Europe. In Romania works a rounder way to increase 0:13:58.320 --> 0:14:01.360 the water level by a few cents meters to maintain 0:14:01.440 --> 0:14:04.800 electricity supplies. Our prigrilor chief Andreade it joins us now 0:14:04.800 --> 0:14:07.640 for more on this story. Andre You've been reporting with 0:14:07.679 --> 0:14:12.359 colleagues from across the region on how this is affecting economies. 0:14:12.520 --> 0:14:15.600 How widespread is the disruption from this hot weather which 0:14:15.640 --> 0:14:18.839 is pushed water levels in the Danube to such lows. 0:14:19.680 --> 0:14:23.000 The situation is quite dire and widespread and expected to 0:14:23.040 --> 0:14:28.480 get worse in the coming days. It's impacting trade, disrupting 0:14:28.480 --> 0:14:31.480 tourist cruises and also power generation, which is key in 0:14:31.560 --> 0:14:35.200 countries such as Romania and Hungary where the Danube River 0:14:36.280 --> 0:14:39.720 is used to cool off the country's nuclear power plants, 0:14:39.800 --> 0:14:41.840 and some of the units have to be shut down, 0:14:41.920 --> 0:14:45.240 and authorities are trying to do everything to avoid a 0:14:45.240 --> 0:14:48.440 full shutdown because these nuclear power plants are key for 0:14:48.840 --> 0:14:50.320 power generation in these countries. 0:14:51.520 --> 0:14:54.560 So what is being done then in response to the situation. 0:14:56.120 --> 0:14:59.080 Well, in some countries, authorities are just waiting for rain 0:14:59.160 --> 0:15:01.840 to come and there's and we're inside. But a lot 0:15:01.880 --> 0:15:07.280 of activity has been happening in Romania. On Monday, authorities 0:15:07.360 --> 0:15:11.880 there used four hundred pounds of explosives to blast a 0:15:12.000 --> 0:15:15.280 rock formation in the river to divert some of the 0:15:15.400 --> 0:15:20.720 river flow towards towards the nuclear plant. Yesterday, dozens of 0:15:20.800 --> 0:15:24.520 workers we're using heavy machinery machinery to break up these 0:15:24.640 --> 0:15:28.000 rocks and load them onto barges that are expected to 0:15:28.040 --> 0:15:31.400 be sunk into the river today to divert more water 0:15:31.480 --> 0:15:34.840 toward the water toward the nuclear plant to avoid a 0:15:34.880 --> 0:15:39.480 full shutdown. All of this is happening at extreme temperatures. 0:15:39.680 --> 0:15:43.280 Yesterday in the area of Romania, temperatures reached around forty 0:15:43.280 --> 0:15:47.600 one degree celsius, so really difficult conditions and there's no 0:15:47.760 --> 0:15:51.000 relief insight of rain coming in for the rest of 0:15:51.040 --> 0:15:51.360 the week. 0:15:52.800 --> 0:15:57.400 What sort of broader economic damage is this causing? Andrea, 0:15:57.480 --> 0:16:00.600 Because we're talking about a river that are course serves 0:16:00.640 --> 0:16:04.120 a multitude of functions for shipping. But you know, this 0:16:04.440 --> 0:16:07.040 effect on power supply is something that has a really 0:16:07.080 --> 0:16:09.920 significant effect, right. 0:16:09.960 --> 0:16:13.640 I mean, it's the second longest river in Europe that 0:16:14.160 --> 0:16:17.760 flows through ten countries. So, and this situation has been 0:16:18.240 --> 0:16:20.800 lasting for days now, so it's very hard to estimate 0:16:20.920 --> 0:16:26.920 economic impact. By what we've seen so far. Authorities in Romania, Hungary, 0:16:27.000 --> 0:16:32.479 Slovakia are actually asking citizens to lower power consumption, companies 0:16:32.520 --> 0:16:36.080 to voluntary decrease their power consumption, so some of them 0:16:36.120 --> 0:16:40.480 have already done so. Carmakers in Romania and Hungary have 0:16:41.520 --> 0:16:44.480 cut down on production or shut down some production. So 0:16:44.640 --> 0:16:47.440 we're seeing is and this is happening. It's sort of 0:16:47.440 --> 0:16:51.680 a worse time, especially for Romania, which has been dealing 0:16:51.720 --> 0:16:56.720 with high deficits and inflation and has an interium government 0:16:56.760 --> 0:17:01.200 in place after months of political instability. So it's to 0:17:01.320 --> 0:17:03.440 be seen that this is not a good time for 0:17:03.640 --> 0:17:08.520 some of these economies to be dealing with such natural problems. 0:17:09.680 --> 0:17:12.080 Thanks for listening to Bloomberg Daybreak Europe. 0:17:12.200 --> 0:17:14.760 If you're enjoying the podcast, give us a follow, leave 0:17:14.800 --> 0:17:17.000 a rating or review, and maybe send it to that 0:17:17.119 --> 0:17:19.960 one friend or colleague who's always trying to keep up 0:17:19.960 --> 0:17:20.600 with the news. 0:17:20.960 --> 0:17:23.159 And if one podcast today isn't enough for you, you 0:17:23.200 --> 0:17:26.000 can also listen to us live every weekday from six 0:17:26.040 --> 0:17:29.119 am in London on DAB Radio, on tune in and 0:17:29.280 --> 0:17:30.879 on the Bloomberg Business app 0:17:31.280 --> 0:17:33.600 Or if you've got a smart speaker nearby, just say 0:17:33.760 --> 0:17:35.040 play Bloomberg Radio.