WEBVTT - Putin Admits Problems, Burnham Sets Out Vision, Greenland’s Unusual Issue 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio news. 0:00:09.680 --> 0:00:12.680 This is the Bloomberg Debic Curate podcast. Good morning, It's Monday, 0:00:12.720 --> 0:00:15.880 the twenty ninth of June. I'm Caroline Hipkea in London. 0:00:15.960 --> 0:00:19.360 And I'm Stephen Caroline Brussels. Coming up today, the United 0:00:19.400 --> 0:00:22.480 States and Iran once again agree to stop attacking each 0:00:22.480 --> 0:00:24.599 other ahead of their latest round of talks. 0:00:25.120 --> 0:00:29.720 Vladimir Putin admits Russians are experiencing fuel supply problems as 0:00:29.800 --> 0:00:32.320 Ukrainian drones strike refineries. 0:00:33.159 --> 0:00:36.400 The US Trade chief meets his Chinese counterpart as relations 0:00:36.440 --> 0:00:38.560 between Brussels and Beijing deteriorate. 0:00:39.040 --> 0:00:43.519 Plus, the grass Isn't always Greenlander Why the European territory 0:00:43.600 --> 0:00:47.480 keeps attracting investors that it may not even want. Let's 0:00:47.479 --> 0:00:49.560 start with a roundup of our top stories. 0:00:49.920 --> 0:00:52.839 The United States and Iran have agreed to stop attacking 0:00:52.880 --> 0:00:56.560 each other before negotiations resumed this week in Doha. An 0:00:56.560 --> 0:00:59.720 American officials said technical talks are scheduled to continue on 0:00:59.760 --> 0:01:02.520 the d which was reached earlier this month. The move 0:01:02.600 --> 0:01:05.320 to cool tensions follows a series of strikes by both 0:01:05.360 --> 0:01:09.039 sides that began on Thursday and intensified over the weekend. 0:01:09.560 --> 0:01:12.479 On Sunday, Iran assisted it had the right to full 0:01:12.560 --> 0:01:15.720 control of the Straight of Hormos. Our Senior Washington editor 0:01:15.800 --> 0:01:19.560 Wendy Benjaminson says the dispute is shifting the focus of 0:01:19.600 --> 0:01:20.080 the talks. 0:01:21.000 --> 0:01:24.319 They are going to resume this week. However, the focus 0:01:24.360 --> 0:01:29.320 has changed because the Straight of Hormose is so critical 0:01:29.560 --> 0:01:33.840 to restoring pre war prices, pre war flows of oil 0:01:33.880 --> 0:01:36.160 and gas, and things like that, that the focus on 0:01:36.200 --> 0:01:38.800 the talks is not going to be technical talks about 0:01:38.880 --> 0:01:42.440 Iran's nuclear ambitions, but instead talks about the Straight of 0:01:42.440 --> 0:01:42.960 hor Moos. 0:01:43.880 --> 0:01:46.800 Wendy Benjaminson says the two sides remain at odds over 0:01:46.880 --> 0:01:50.320 key parts of the agreement. Those include whether Iran will 0:01:50.360 --> 0:01:53.680 impose tolls or other charges on ships passing through the 0:01:53.680 --> 0:01:57.640 Strait of Hormos and the fragile ceasefire between Israel and Lebanon. 0:01:58.040 --> 0:02:01.520 On Friday, Bloomberg reported that Oman had told European officials 0:02:01.600 --> 0:02:05.520 vessels may ultimately be required to pay fees to transit 0:02:05.560 --> 0:02:06.240 the waterway. 0:02:06.600 --> 0:02:09.240 Russia's President of Vladimir Putin has for the first time 0:02:09.320 --> 0:02:13.880 publicly acknowledged fuel supply problems within the country that as 0:02:14.000 --> 0:02:18.359 Ukraine ramps up at tags on Russia's energy infrastructure. Moscow 0:02:18.400 --> 0:02:21.200 is now weighing a range of measures to support its 0:02:21.200 --> 0:02:25.480 domestic fuel market, including a full ban on diesel exports 0:02:25.680 --> 0:02:30.000 after drone strikes on refineries reduce fuel production. Speaking during 0:02:30.040 --> 0:02:33.919 a televised meeting with oil executives and government officials, Putin 0:02:34.120 --> 0:02:35.480 had this to say, and. 0:02:37.520 --> 0:02:40.799 You are well aware that problems persist for both motorists 0:02:40.840 --> 0:02:45.200 and businesses. Unfortunately, there are also cues at gas stations, 0:02:45.639 --> 0:02:48.920 and finding the right grade of gasoline isn't always easy. 0:02:49.320 --> 0:02:52.919 And of course we understand the difficulties faced by agricultural 0:02:52.960 --> 0:02:55.120 producers and farming during the summer. 0:02:55.480 --> 0:02:58.600 Those comments from President Putin come as Ukraine says that 0:02:58.639 --> 0:03:02.239 it has struck another major oil refinery in southern Russia. 0:03:02.320 --> 0:03:06.280 Writing on telegram, Ukrainian President Vlodomi Zelinski said the attack 0:03:06.400 --> 0:03:10.760 would reduce the resources fueling Russia's war machine and marked 0:03:10.880 --> 0:03:13.000 quote another step toward peace. 0:03:15.280 --> 0:03:18.600 Britain has abandoning plans to replace its aging warships ahead 0:03:18.600 --> 0:03:21.480 of a key NATO summit. Instead, the UK will deploy 0:03:21.600 --> 0:03:25.880 six drone enabled vessels, arguing they can deliver greater firepower 0:03:25.919 --> 0:03:29.400 with fewer sailors and at a lower cost. Former NATO 0:03:29.440 --> 0:03:32.800 Commander General John McColl says that's not enough. 0:03:33.639 --> 0:03:35.800 The armed forces are very keen to move in that 0:03:35.880 --> 0:03:39.800 direction of transformation, but this level of resource, I regret, 0:03:40.320 --> 0:03:43.960 is not sufficient to move sufficiently in that direction to 0:03:44.000 --> 0:03:47.360 deter Russia as part of the alliance, or indeed to 0:03:47.480 --> 0:03:49.440 meter obligations within the Alliance. 0:03:50.800 --> 0:03:53.760 John McCall is among a growing number of senior military 0:03:53.760 --> 0:03:56.400 figures warning that the government is failing to match its 0:03:56.400 --> 0:04:00.640 defense ambitions with adequate funding. Former Defense Secretary John Healy 0:04:00.680 --> 0:04:03.720 resigned last month after failing to secure an additional twenty 0:04:03.760 --> 0:04:06.960 eight billion pounds for defense from Prime Minister Cair Starmer. 0:04:07.400 --> 0:04:09.680 Prime Minister is due to meet at NATO Secretary General 0:04:09.760 --> 0:04:13.280 Mark Rotta later today, where Britain's defense spending plans are 0:04:13.320 --> 0:04:15.280 expected to come under close scrutiny. 0:04:16.200 --> 0:04:19.120 Well, the front runner to replace Kiss Starma as Prime Minister, 0:04:19.240 --> 0:04:23.440 will pledge to shift power away from London. Andy Burnham 0:04:23.480 --> 0:04:26.440 speaks later this morning in Manchester as both the public 0:04:26.480 --> 0:04:30.760 and investors look for details of his policy agenda. Bloombags 0:04:30.800 --> 0:04:31.920 James Walcock has more. 0:04:32.920 --> 0:04:36.719 Andy Burnham has momentum, but does the former Mayor of 0:04:36.760 --> 0:04:40.440 Manchester have better answers to Britain's woes than the past 0:04:40.520 --> 0:04:43.800 series of prime ministers. In his first major speech is 0:04:43.800 --> 0:04:46.720 Becoming an MP, Burnham's team tell us we should expect 0:04:46.800 --> 0:04:50.200 him to talk about devolution, performing public procurement in the 0:04:50.279 --> 0:04:54.520 labor market and fixing trust in politics, but critics note 0:04:54.560 --> 0:04:59.280 Burnham's ambitions don't change the UK's fiscal or economic reality. 0:05:00.000 --> 0:05:05.320 London, James Woolcock Blue Megradia, China says that can withstand 0:05:05.320 --> 0:05:08.040 to freeze and economic and trade ties with the European 0:05:08.160 --> 0:05:10.920 Union a head of scheduled talks between the two parties. 0:05:11.279 --> 0:05:14.159 That's according to a social media account associated with China 0:05:14.240 --> 0:05:18.279 Central Television, which said the EU had altered its approach 0:05:18.360 --> 0:05:22.839 to negotiations, using pressure and conditions to strengthen its position. 0:05:23.360 --> 0:05:26.160 Our chief North Asia correspondent Steven Engel says, the situation 0:05:26.279 --> 0:05:27.080 is tense. 0:05:27.320 --> 0:05:30.359 China, you know, basically communicating through state media. We had 0:05:30.400 --> 0:05:34.200 Global Times, we had CCTV online account talking about they're 0:05:34.240 --> 0:05:37.560 ready to go full tilt against the European Union, even 0:05:37.600 --> 0:05:43.120 if that means freezing commercial ties and freezing relations right now. Essentially, 0:05:43.440 --> 0:05:46.359 the Chinese point of view is that the Europeans have 0:05:46.400 --> 0:05:50.840 been concentrating almost all of their efforts on securing chips 0:05:50.920 --> 0:05:54.320 and rare earths, where China wants more clarity on market 0:05:54.400 --> 0:05:55.359 access to Europe. 0:05:56.120 --> 0:05:59.520 Bloomberg Steven Engel, speaking earlier this morning, you tried commission 0:05:59.520 --> 0:06:02.720 marrow chef it as scheduled to meet China's Commerce Minister 0:06:03.000 --> 0:06:06.400 Wang Wan Tao in Brussels today. The Block is pressing 0:06:06.400 --> 0:06:09.640 Beijing to address a widening trade imbalance that reached about 0:06:09.640 --> 0:06:12.440 three hundred and sixty billion euros last year and has 0:06:12.440 --> 0:06:14.080 continued to expand this year. 0:06:15.480 --> 0:06:18.760 US banks are giving up on betts for a stronger 0:06:18.800 --> 0:06:21.960 Euro this year. That's as markets predict that the US 0:06:22.000 --> 0:06:26.239 will outpace Europe in terms of raising borrowing costs. Bag 0:06:26.320 --> 0:06:27.640 C but Adebayo has more. 0:06:28.320 --> 0:06:31.840 Wall Street lenders, including JP Morgan and Morgan Stanley, are 0:06:31.880 --> 0:06:35.480 predicting a slide in the euro. Estimates see the currency 0:06:35.560 --> 0:06:39.000 dropping over three percent over the next twelve months, as 0:06:39.040 --> 0:06:41.440 trade is factor in a rate increase from the Federal 0:06:41.480 --> 0:06:44.680 Reserve in twenty twenty six, and no longer expect one 0:06:44.720 --> 0:06:47.720 in Europe. The new outlook is a turnaround from earlier 0:06:47.760 --> 0:06:50.720 this year, when policymakers in Europe, worried the euro was 0:06:50.760 --> 0:06:54.480 too strong after it hit its highest rate in five years. 0:06:55.160 --> 0:06:57.760 There are still some who hold a more benign view 0:06:57.839 --> 0:07:00.640 on the euro, believing the Fed will also hold off 0:07:00.640 --> 0:07:04.960 from a hike and remaining negative on the dollar next year. Still, 0:07:05.200 --> 0:07:09.400 those expecting a euro rally aren't disappearing fast in London, 0:07:09.440 --> 0:07:09.640 do you? 0:07:09.680 --> 0:07:11.560 Added by Bloomberg Radio. 0:07:11.840 --> 0:07:14.640 And those are our top stories. So looking at the 0:07:14.680 --> 0:07:17.320 markets this morning as we come to quarter end and 0:07:17.480 --> 0:07:19.600 the end of the first half of this year. Brent 0:07:19.720 --> 0:07:22.960 CREWDE futures trading on a seventy two handle up about 0:07:23.000 --> 0:07:25.680 half of one percent this morning. Seventy two dollars, thirty 0:07:25.680 --> 0:07:29.480 four SMP and nasdac EMAINI futures are in the green, 0:07:29.600 --> 0:07:31.880 up about half of one percent. Your SOX fifty futures 0:07:31.920 --> 0:07:34.640 also are gaining a little bit, but only up about 0:07:34.680 --> 0:07:35.720 tenth of one percent. 0:07:35.960 --> 0:07:36.920 Dollar range bound. 0:07:37.000 --> 0:07:41.040 The cospy this morning, dropping by two point well by 0:07:41.080 --> 0:07:44.240 one point nine percent right now. We've seen extreme volatility 0:07:44.280 --> 0:07:48.560 there and bonds look vulnerable. US benchmark treasuries are declining. 0:07:48.600 --> 0:07:51.320 Tenure yield up a basis point now trading at four 0:07:52.000 --> 0:07:54.880 thirty eight this morning, And to watch this week. Of course, 0:07:54.920 --> 0:08:00.560 the European inflation readings CPI across a number of European countries. 0:08:00.800 --> 0:08:04.760 US jobs report for June comes out, of course, on 0:08:04.920 --> 0:08:07.520 Thursday is a major holiday in the US. On Friday, 0:08:07.560 --> 0:08:08.400 those are the markets. 0:08:09.440 --> 0:08:11.680 In a moment, we'll bring you more on what's at 0:08:11.680 --> 0:08:14.520 stake in the EU China trade meetings today, plus why 0:08:14.600 --> 0:08:18.160 investors drawn to Greenland are wondering if the island is 0:08:18.240 --> 0:08:21.800 really open for business. But another story that caught a 0:08:21.880 --> 0:08:25.640 rye this morning on India's rush to protect its traditional products. 0:08:25.640 --> 0:08:27.640 A Conscious Thing has been reporting on how a Prada 0:08:27.680 --> 0:08:31.080 fashion show last year sparked a debate in India and 0:08:31.280 --> 0:08:34.120 around the world. A sandal that was featured by the 0:08:34.160 --> 0:08:37.920 Italian brand closely resembled an Indian kolhapuri, which is a 0:08:37.920 --> 0:08:42.000 traditional sandle named after Kolhapur. It's out in Maharashta. It 0:08:42.080 --> 0:08:44.680 sparked a backlash online, and Prada went on to acknowledge 0:08:44.720 --> 0:08:48.320 eventually the design's Indian origins, but it's become part of 0:08:48.360 --> 0:08:51.640 a wider legal and cultural debate about how products that 0:08:51.679 --> 0:08:55.280 have roots to a specific place can be protected. India's 0:08:55.280 --> 0:08:59.640 on a drive to issue ten thousand geographical indications as 0:08:59.640 --> 0:09:02.920 they're non for this kind of legal protection by twenty thirty. 0:09:03.200 --> 0:09:07.880 But it's complicated to put a legal stamp on products 0:09:08.040 --> 0:09:11.959 or traditions that have migrated across borders that may be 0:09:12.040 --> 0:09:14.560 attached to a place now, but in fact may also 0:09:14.600 --> 0:09:16.920 be claimed by other places as well, and it gets 0:09:16.920 --> 0:09:19.760 a bit complicated. You've got the champagne example, which has 0:09:19.760 --> 0:09:21.920 been around for a very long time, and that's, as 0:09:21.920 --> 0:09:23.960 the country points out and speaking to experts, that's been 0:09:23.960 --> 0:09:27.720 effectively protected because of not only their EU legal heft 0:09:27.760 --> 0:09:30.600 that comes behind it, but also a litigious group of 0:09:30.600 --> 0:09:34.079 producers who have been very careful to protect it against 0:09:34.120 --> 0:09:37.200 any impostors, shall we say that might be calling them 0:09:37.200 --> 0:09:39.880 a champagne. But it's not quite that easy when you 0:09:39.920 --> 0:09:44.080 spread across many of these products, which you know have 0:09:44.280 --> 0:09:45.760 very interesting cultural histories. 0:09:46.120 --> 0:09:46.280 Yeah. 0:09:46.320 --> 0:09:51.000 Absolutely, And it's about how you protect the wages, I suppose, 0:09:51.240 --> 0:09:54.880 and the living of the people who are practicing, you know, 0:09:54.960 --> 0:09:57.840 these traditional methods. I mean, it was interesting with this 0:09:57.880 --> 0:10:01.240 particular standal, which actually I hadn't realized until I saw 0:10:01.240 --> 0:10:05.360 the photographs in the piece, you know how recognizable it is. 0:10:05.360 --> 0:10:09.760 But they're made with particular materials, but even those local 0:10:09.840 --> 0:10:14.800 artisans have complained that actually these gi these geographical indications, 0:10:15.000 --> 0:10:18.280 they haven't protected their business. So it's also about how 0:10:18.720 --> 0:10:21.720 you can make what the French have used incredibly effectively, 0:10:21.760 --> 0:10:25.480 and Italians, lots of other European countries have used effectively 0:10:25.520 --> 0:10:28.840 as a kind of tool for safeguarding certain industries. You 0:10:28.840 --> 0:10:31.080 know how you can translate that also for India to 0:10:31.160 --> 0:10:35.319 actually mean that those products then are increased in value 0:10:35.360 --> 0:10:38.360 of the livelihoods of those people making them, maybe are sustained. 0:10:38.520 --> 0:10:40.880 I mean global trade drills have been in a huge 0:10:40.960 --> 0:10:43.000 data flox for the past year and a half as well. 0:10:43.080 --> 0:10:45.440 This is part of that story too. It's to be 0:10:45.440 --> 0:10:48.280 interesting to see how much the international organizations that have 0:10:48.280 --> 0:10:51.840 particularly protected or protected these kinds of products will stand 0:10:51.920 --> 0:10:54.840 up to scrutiny as more places want to. I suppose 0:10:55.000 --> 0:10:58.600 put a stamp on those pieces really interesting read and 0:10:58.640 --> 0:11:01.679 we'll put a link to it on our podcast notes. Well, 0:11:01.760 --> 0:11:04.160 let's bring you more now on the EU China trade 0:11:04.200 --> 0:11:07.080 talks happening in Brussels today. Our Brussels spirity Suzan lynches 0:11:07.120 --> 0:11:10.839 with us for more. Suzan, the East Trade Commissioner Marschefovitch 0:11:10.920 --> 0:11:14.079 is going to meet China's Commerce Minister Wang went Tao 0:11:14.160 --> 0:11:17.199 at a sensitive time for trade relations. What do the 0:11:17.240 --> 0:11:18.800 Europeans want from these meetings? 0:11:19.840 --> 0:11:23.600 Yeah, I think the context here is this recent debate 0:11:23.720 --> 0:11:25.680 that the European leaders had just a couple of weeks 0:11:25.679 --> 0:11:29.280 ago here in Brussels, where they have this substantial discussion 0:11:29.320 --> 0:11:32.520 on China, and it was really an indication of the 0:11:32.720 --> 0:11:36.800 hardening of Stanta, a kind of a willingness by European 0:11:36.960 --> 0:11:40.720 leaders across the board to adopt more confrontation approach when 0:11:40.720 --> 0:11:44.440 it comes to Beijing. Now in saying that they did 0:11:44.559 --> 0:11:48.840 refrain from mandating the European Commission from doing anything radical 0:11:48.920 --> 0:11:51.440 anything at the time soon. But what we do know 0:11:51.559 --> 0:11:54.400 is that Earthen Underline at that meeting presented a very 0:11:55.400 --> 0:11:59.520 clear eyed position and perspective on where she sees EU 0:11:59.600 --> 0:12:03.920 trade relations with China, sitting making lots of warnings there 0:12:04.080 --> 0:12:06.320 about the de penalty of the EU and China, and 0:12:06.360 --> 0:12:08.960 we were told at the time no leaders disagreed. Even 0:12:09.000 --> 0:12:12.080 those countries that do so much trade with China realize 0:12:12.080 --> 0:12:14.959 that the Europeans have a China problem. There's an issue 0:12:14.960 --> 0:12:19.199 of overcapacity there's an issue of this huge trade imbalance 0:12:19.240 --> 0:12:22.240 that's growing, and then something needs to be done. Now, 0:12:22.720 --> 0:12:25.720 what we do know is that probably around autumn fall 0:12:25.760 --> 0:12:28.920 time September at the European Commission will come forward with something. 0:12:28.920 --> 0:12:32.680 But whether it's about kind of strengthening existing defense trade 0:12:32.679 --> 0:12:36.440 defense instruments, or perhaps going that bit further remains. 0:12:36.080 --> 0:12:36.520 To be seen. 0:12:36.600 --> 0:12:40.440 So that's kind of the background for this discussion today. 0:12:41.640 --> 0:12:42.360 That's interesting. 0:12:42.480 --> 0:12:45.640 A China problem. Well, we've had some signals from China, 0:12:45.800 --> 0:12:48.520 so ahead of these meetings, there's been this social media 0:12:48.559 --> 0:12:53.320 account that's associated with State TV reporting that Beijing can 0:12:53.840 --> 0:12:57.319 endure a deterioration of ties with the EU. It's quite 0:12:57.400 --> 0:13:00.440 sort of forceful language. How will those messages go down 0:13:00.440 --> 0:13:01.199 in Brussels. 0:13:02.120 --> 0:13:02.320 Yeah. 0:13:02.360 --> 0:13:05.440 I think the issue, of course for the European Union 0:13:05.679 --> 0:13:08.760 is that it is so aware of its vulnerability here 0:13:08.840 --> 0:13:11.520 is that China continues to have so much leverage, and 0:13:11.559 --> 0:13:14.320 I think a very good example was a few weeks 0:13:14.360 --> 0:13:19.160 ago we reported a Chinese semiconductor maker was temporarily taking 0:13:19.160 --> 0:13:24.079 off taken off an EU sanctions list because automakers in 0:13:24.440 --> 0:13:26.839 Europe and Germany had complained to the Commission that they 0:13:26.920 --> 0:13:29.800 needed the parts that they couldn't they couldn't do their 0:13:29.880 --> 0:13:33.920 work without these, So it kind of captured this conundrum 0:13:34.200 --> 0:13:36.959 facing Europe. At the same time, I think there's a 0:13:37.040 --> 0:13:40.319 winningness now, as I said, say, for the Europeans to 0:13:40.480 --> 0:13:43.160 use some of their own levels their own China still 0:13:43.200 --> 0:13:46.240 wants to do business obviously in the European market for example, 0:13:46.280 --> 0:13:48.960 but I do think that this threat of retaliation in 0:13:48.960 --> 0:13:53.240 some way, and significantly the in prior instance, we've seen 0:13:53.280 --> 0:13:57.360 that China would be prepared to target individual countries. You know, 0:13:57.400 --> 0:14:00.000 it's even in the last couple of months men should 0:14:00.000 --> 0:14:03.920 and as some products which obviously are produced by certain 0:14:03.920 --> 0:14:06.199 countries France for example, when it comes to food and 0:14:06.240 --> 0:14:09.680 drink for example. So yes, I think that's weighing on mind. 0:14:09.760 --> 0:14:11.880 But at the end of the day, as Europe looks 0:14:11.880 --> 0:14:16.720 of this whole broader competitiveness problem, this issue of Chinese 0:14:16.800 --> 0:14:21.120 over capacity, of excessive of anti dumping, and of excessive 0:14:21.400 --> 0:14:23.360 aid by the Chinese at a time when of course 0:14:23.400 --> 0:14:27.000 domestic demand is going down in China, that is becoming 0:14:27.000 --> 0:14:29.240 a serious concern now for the Europeans. 0:14:30.000 --> 0:14:33.520 Yeah. Indeed, and perhaps an indication of other trade relations 0:14:33.520 --> 0:14:36.520 that might have been improving a big event here in 0:14:36.520 --> 0:14:40.200 Brussels last night, certainly a massive fireworks display which anyone 0:14:40.240 --> 0:14:42.360 who went to bed early was woken up promptly by. 0:14:42.760 --> 0:14:45.080 This was the celebration of two hundred and fifty years 0:14:45.080 --> 0:14:48.080 of the United States taking over parks San Cantonaera in 0:14:48.120 --> 0:14:50.080 Brussels as well, and that was something that a lot 0:14:50.080 --> 0:14:53.240 of European officials, including Marschefcvic, was that as well. You 0:14:53.280 --> 0:14:55.680 were there too, Sosan. I mean, is this a demonstration 0:14:55.760 --> 0:14:58.160 of perhaps improved relations with the US. 0:14:59.000 --> 0:15:00.000 Yeah, it was quite interesting. 0:15:00.000 --> 0:15:02.880 Sepkovich, the EU Trade Commissioner, was like a celebrity there 0:15:03.680 --> 0:15:06.920 meeting and greeting at the Greater to go to the 0:15:07.000 --> 0:15:09.560 VIP section that was there. And yeah, I mean, I 0:15:09.560 --> 0:15:12.240 think last night you had some senior European Union figures. 0:15:12.240 --> 0:15:14.880 You had Roberta Metzlat, the head of the European Parliament. 0:15:14.960 --> 0:15:17.480 You also had Mark Ruta, the Nation Secretary General, who 0:15:17.520 --> 0:15:21.320 was very prominent there in the front row with the 0:15:21.800 --> 0:15:24.640 three US ambassadors because you have an ambassador to NATO, 0:15:24.800 --> 0:15:27.680 to the EU and to Belgium, also the Belgian Prime 0:15:27.720 --> 0:15:32.480 Minister Barta Weavor and I think again Rusta was for example, 0:15:32.680 --> 0:15:36.000 Hales is the best, the greatest Secretary General of NATO ever, 0:15:36.320 --> 0:15:38.080 So there was a lot of bun on me. And 0:15:38.160 --> 0:15:41.040 I think we know that Ruster's strategy is to keep 0:15:41.040 --> 0:15:43.440 the Americans on board, particularly when it comes to defense. 0:15:44.120 --> 0:15:46.600 But no, look, I think it does go to show 0:15:46.920 --> 0:15:48.960 the power of the relationship between. 0:15:48.760 --> 0:15:51.680 The United States and the EU. Despite all the problems. 0:15:51.720 --> 0:15:54.920 This event had been controversial for some Americans living in 0:15:54.920 --> 0:15:58.080 the city. It was their big celebration of two hundred 0:15:58.080 --> 0:16:01.960 and fifty years of independence. Some were worried about, you know, 0:16:02.200 --> 0:16:07.200 it's politicized nature celebrating Donald Trump, for example. But I 0:16:07.240 --> 0:16:09.720 think there was been eight thousand people at this including 0:16:09.720 --> 0:16:13.080 some senior officials. So it does goes to show that, 0:16:13.160 --> 0:16:16.000 of course the United States still have heft here and 0:16:16.080 --> 0:16:18.320 of course the trade and actually Stephen I have a 0:16:18.400 --> 0:16:20.400 huge amount of corporates as well. At one point the 0:16:20.440 --> 0:16:24.400 ambassador to Belgium declared revealed that the event cost over 0:16:24.480 --> 0:16:27.000 five million and thankful the corporate sponsors who made that happen. 0:16:27.080 --> 0:16:30.400 So there was your usual list of American companies, everybody 0:16:30.400 --> 0:16:33.760 from Harry Davidson to the more the newer companies like 0:16:33.840 --> 0:16:36.680 Measure and Google, so there was a kind of an 0:16:36.760 --> 0:16:41.000 insight into the state of the US presence here in 0:16:41.120 --> 0:16:42.720 Europe corporate level as well. 0:16:43.280 --> 0:16:45.320 So Zan and land shar Russels Piurity, thank you very 0:16:45.400 --> 0:16:50.120 much for joining us. Stay with us. More from Bloomberg 0:16:50.200 --> 0:16:52.320 Daybreak Europe coming up after this. 0:16:54.000 --> 0:16:56.720 So fascinating insight. Then, So what goes on well in 0:16:56.760 --> 0:16:59.320 the business day and afterwards of course in the evening 0:16:59.360 --> 0:17:02.240 with all of those liberation Susie Lynch, thanks for your time. 0:17:02.640 --> 0:17:02.800 Well. 0:17:02.840 --> 0:17:07.600 Donald Trump's fixation on Greenland has thrust it into an uncomfortable, 0:17:07.640 --> 0:17:12.520 if potentially lucrative position by drawing investor interests. The question 0:17:12.640 --> 0:17:16.280 now is whether the territorally actually wants outside investment in 0:17:16.320 --> 0:17:20.000 our Copenhagen beer chief. Sarah Scholein joins us now for 0:17:20.119 --> 0:17:22.480 more on this. Sarah, good to speak to you. What 0:17:22.560 --> 0:17:25.560 kind of investors have been drawn then to Greenland? 0:17:26.720 --> 0:17:27.359 Good morning. 0:17:27.640 --> 0:17:31.360 Yeah, we've definitely seen a big search and interest from 0:17:31.400 --> 0:17:35.760 all sorts of international investors. Of course, many Americans, Danish, 0:17:35.840 --> 0:17:40.040 European they're still looking to get in on some of 0:17:40.080 --> 0:17:45.000 the seeming the endless opportunities that Greenland offers in minerals, energy, tourism, 0:17:45.200 --> 0:17:50.360 infrastructure and defense, but so far it's just incredibly difficult 0:17:50.440 --> 0:17:53.280 to make any money out there, especially in minerals. That 0:17:53.320 --> 0:17:57.119 has been described at grace lengths. The locals, officials and 0:17:57.160 --> 0:18:00.199 business leaders that are putting a very processor's spin the 0:18:00.280 --> 0:18:05.560 interest from international investors because they also know that they 0:18:05.600 --> 0:18:08.680 need this kind of investment if they want to eventually 0:18:08.720 --> 0:18:12.720 they want to get independence, they want to get out 0:18:12.760 --> 0:18:14.440 of control from Denmark. 0:18:14.800 --> 0:18:16.600 So it's just a lot of things. 0:18:16.320 --> 0:18:18.880 Going on and that they know that they really need 0:18:18.880 --> 0:18:21.000 to welcome these investors. 0:18:22.000 --> 0:18:25.560 Yeah, it's an interesting piece of reporting of the conversations 0:18:25.560 --> 0:18:29.359 of what the experience of some of those investors have 0:18:29.560 --> 0:18:33.800 been though, and some of them privately questioning whether Greenland 0:18:33.800 --> 0:18:35.360 really wants the investment at all. 0:18:36.560 --> 0:18:39.199 Yeah, it's the deception they have been given, and we 0:18:39.280 --> 0:18:40.719 hear it's been very mixed. 0:18:41.400 --> 0:18:42.600 Greenland is very open. 0:18:42.680 --> 0:18:45.119 They also say they said that many times Greenland is 0:18:45.160 --> 0:18:47.359 open for business, but when it really comes down to 0:18:47.920 --> 0:18:52.640 actually setting up business, many people find regulatory hurdles, legal uncertainty, 0:18:53.119 --> 0:18:57.040 lots of disputes, and then the things are moving very slowly. 0:18:57.720 --> 0:18:59.960 There have been a case of some examples in recent 0:19:00.200 --> 0:19:02.639 years where companies that have really gotten burned, and I 0:19:02.640 --> 0:19:04.320 think one of the most famous. 0:19:03.960 --> 0:19:05.560 One is in the Quinifel. 0:19:05.760 --> 0:19:10.400 It's one of the world's largest undeveloped earth deposits, where 0:19:10.400 --> 0:19:14.359 there's Australian mining company Energy Transition Miniermals. They spent nearly 0:19:14.400 --> 0:19:18.239 fifteen years their in development getting the mind ready and 0:19:18.280 --> 0:19:22.520 then uranium, which also mined this site, became the defining 0:19:22.560 --> 0:19:24.800 issue in one of the elections and then all of 0:19:24.800 --> 0:19:29.080 a sudden, Greenland banned uranium mining and this Australian company 0:19:29.320 --> 0:19:31.720 had to give up all an investment, and I think 0:19:31.960 --> 0:19:35.679 that really become a prominent example of how easily the 0:19:35.760 --> 0:19:41.359 Greenlandic Greenlanders can take these projects hostage. So local politics 0:19:41.400 --> 0:19:44.320 really take up a lot of space in Greenland. And 0:19:44.359 --> 0:19:48.560 for international investors that are used to maybe invest in 0:19:48.640 --> 0:19:52.120 Europe in the US there is a different environment. So 0:19:52.480 --> 0:19:57.160 it's it's just a very complicated situation because the Greenland 0:19:57.200 --> 0:20:00.200 is also just essentially trying to protect your NATI. Sure, 0:20:00.200 --> 0:20:05.000 they were trying to protect the population and they've seen 0:20:05.040 --> 0:20:07.760 what can happen in other places if they give up 0:20:07.800 --> 0:20:11.520 too much control. Iceland is often referred to an example 0:20:11.520 --> 0:20:12.800 in the tourism industry. 0:20:14.800 --> 0:20:16.240 Great tourism in Iceland. 0:20:16.280 --> 0:20:17.960 The problem for a lot of Iceland, and there's a 0:20:17.960 --> 0:20:20.320 lot of money actually ends up in foreign hands because 0:20:20.320 --> 0:20:22.200 it's international companies that have come in. 0:20:23.080 --> 0:20:24.880 Yeah, and of course you've got to remember it's still 0:20:25.240 --> 0:20:28.520 very very sparsely populated. Isn't there only fifty seven thousand 0:20:28.560 --> 0:20:32.000 Greenlanders in all? I mean, do you think the situation 0:20:32.560 --> 0:20:34.879 is likely to change? 0:20:35.440 --> 0:20:36.800 Well, it has to. 0:20:36.960 --> 0:20:40.520 Greenland has a goal where it wants to diversify its economy. 0:20:41.000 --> 0:20:43.560 They also want to lessen reliance on the Danish subsidies. 0:20:43.560 --> 0:20:46.520 They get around seven hundred billion dollars from the Danish 0:20:46.560 --> 0:20:49.679 government every year, and they have a goal of advancing 0:20:49.720 --> 0:20:54.960 towards independence. To get that, they do need foreign investments 0:20:55.280 --> 0:20:58.120 and they need an economy that is less reliant right 0:20:58.160 --> 0:21:01.680 now on fishing, and they need more tours and they 0:21:01.720 --> 0:21:04.480 need more minerals. So it's still in this it's a 0:21:04.520 --> 0:21:09.160 really tough dilemma for them because they really want the investment, 0:21:09.240 --> 0:21:11.760 but they're also very afraid to give up the control. 0:21:12.480 --> 0:21:14.840 Thanks for listening to Bloomberg Daybreak Europe. 0:21:15.000 --> 0:21:17.560 If you're enjoying the podcast, give us a follow, leave 0:21:17.600 --> 0:21:19.800 a rating or review, and maybe send it to that 0:21:19.960 --> 0:21:22.760 one friend or colleague who's always trying to keep up 0:21:22.800 --> 0:21:23.399 with the news. 0:21:23.800 --> 0:21:26.000 And if one podcast today isn't enough for you, you 0:21:26.000 --> 0:21:28.800 can also listen to us live every weekday from six 0:21:28.840 --> 0:21:31.919 am in London on DAB Radio, on tune in and 0:21:32.080 --> 0:21:33.680 on the Bloomberg Business app. 0:21:33.960 --> 0:21:36.400 Oh if you've got a smart speaker nearby, just say 0:21:36.560 --> 0:21:37.879 play Bloomberg Radio.