Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2: This is the Bloomberg Debic Curate podcast. Good morning, It's Monday,
Speaker 2: the twenty ninth of June. I'm Caroline Hipkea in London.
Speaker 3: And I'm Stephen Caroline Brussels. Coming up today, the United
Speaker 3: States and Iran once again agree to stop attacking each
Speaker 3: other ahead of their latest round of talks.
Speaker 2: Vladimir Putin admits Russians are experiencing fuel supply problems as
Speaker 2: Ukrainian drones strike refineries.
Speaker 3: The US Trade chief meets his Chinese counterpart as relations
Speaker 3: between Brussels and Beijing deteriorate.
Speaker 2: Plus, the grass Isn't always Greenlander Why the European territory
Speaker 2: keeps attracting investors that it may not even want. Let's
Speaker 2: start with a roundup of our top stories.
Speaker 3: The United States and Iran have agreed to stop attacking
Speaker 3: each other before negotiations resumed this week in Doha. An
Speaker 3: American officials said technical talks are scheduled to continue on
Speaker 3: the d which was reached earlier this month. The move
Speaker 3: to cool tensions follows a series of strikes by both
Speaker 3: sides that began on Thursday and intensified over the weekend.
Speaker 3: On Sunday, Iran assisted it had the right to full
Speaker 3: control of the Straight of Hormos. Our Senior Washington editor
Speaker 3: Wendy Benjaminson says the dispute is shifting the focus of
Speaker 3: the talks.
Speaker 4: They are going to resume this week. However, the focus
Speaker 4: has changed because the Straight of Hormose is so critical
Speaker 4: to restoring pre war prices, pre war flows of oil
Speaker 4: and gas, and things like that, that the focus on
Speaker 4: the talks is not going to be technical talks about
Speaker 4: Iran's nuclear ambitions, but instead talks about the Straight of
Speaker 4: hor Moos.
Speaker 3: Wendy Benjaminson says the two sides remain at odds over
Speaker 3: key parts of the agreement. Those include whether Iran will
Speaker 3: impose tolls or other charges on ships passing through the
Speaker 3: Strait of Hormos and the fragile ceasefire between Israel and Lebanon.
Speaker 3: On Friday, Bloomberg reported that Oman had told European officials
Speaker 3: vessels may ultimately be required to pay fees to transit
Speaker 3: the waterway.
Speaker 2: Russia's President of Vladimir Putin has for the first time
Speaker 2: publicly acknowledged fuel supply problems within the country that as
Speaker 2: Ukraine ramps up at tags on Russia's energy infrastructure. Moscow
Speaker 2: is now weighing a range of measures to support its
Speaker 2: domestic fuel market, including a full ban on diesel exports
Speaker 2: after drone strikes on refineries reduce fuel production. Speaking during
Speaker 2: a televised meeting with oil executives and government officials, Putin
Speaker 2: had this to say, and.
Speaker 1: You are well aware that problems persist for both motorists
Speaker 1: and businesses. Unfortunately, there are also cues at gas stations,
Speaker 1: and finding the right grade of gasoline isn't always easy.
Speaker 1: And of course we understand the difficulties faced by agricultural
Speaker 1: producers and farming during the summer.
Speaker 2: Those comments from President Putin come as Ukraine says that
Speaker 2: it has struck another major oil refinery in southern Russia.
Speaker 2: Writing on telegram, Ukrainian President Vlodomi Zelinski said the attack
Speaker 2: would reduce the resources fueling Russia's war machine and marked
Speaker 2: quote another step toward peace.
Speaker 3: Britain has abandoning plans to replace its aging warships ahead
Speaker 3: of a key NATO summit. Instead, the UK will deploy
Speaker 3: six drone enabled vessels, arguing they can deliver greater firepower
Speaker 3: with fewer sailors and at a lower cost. Former NATO
Speaker 3: Commander General John McColl says that's not enough.
Speaker 5: The armed forces are very keen to move in that
Speaker 5: direction of transformation, but this level of resource, I regret,
Speaker 5: is not sufficient to move sufficiently in that direction to
Speaker 5: deter Russia as part of the alliance, or indeed to
Speaker 5: meter obligations within the Alliance.
Speaker 3: John McCall is among a growing number of senior military
Speaker 3: figures warning that the government is failing to match its
Speaker 3: defense ambitions with adequate funding. Former Defense Secretary John Healy
Speaker 3: resigned last month after failing to secure an additional twenty
Speaker 3: eight billion pounds for defense from Prime Minister Cair Starmer.
Speaker 3: Prime Minister is due to meet at NATO Secretary General
Speaker 3: Mark Rotta later today, where Britain's defense spending plans are
Speaker 3: expected to come under close scrutiny.
Speaker 2: Well, the front runner to replace Kiss Starma as Prime Minister,
Speaker 2: will pledge to shift power away from London. Andy Burnham
Speaker 2: speaks later this morning in Manchester as both the public
Speaker 2: and investors look for details of his policy agenda. Bloombags
Speaker 2: James Walcock has more.
Speaker 6: Andy Burnham has momentum, but does the former Mayor of
Speaker 6: Manchester have better answers to Britain's woes than the past
Speaker 6: series of prime ministers. In his first major speech is
Speaker 6: Becoming an MP, Burnham's team tell us we should expect
Speaker 6: him to talk about devolution, performing public procurement in the
Speaker 6: labor market and fixing trust in politics, but critics note
Speaker 6: Burnham's ambitions don't change the UK's fiscal or economic reality.
Speaker 3: London, James Woolcock Blue Megradia, China says that can withstand
Speaker 3: to freeze and economic and trade ties with the European
Speaker 3: Union a head of scheduled talks between the two parties.
Speaker 3: That's according to a social media account associated with China
Speaker 3: Central Television, which said the EU had altered its approach
Speaker 3: to negotiations, using pressure and conditions to strengthen its position.
Speaker 3: Our chief North Asia correspondent Steven Engel says, the situation
Speaker 3: is tense.
Speaker 7: China, you know, basically communicating through state media. We had
Speaker 7: Global Times, we had CCTV online account talking about they're
Speaker 7: ready to go full tilt against the European Union, even
Speaker 7: if that means freezing commercial ties and freezing relations right now. Essentially,
Speaker 7: the Chinese point of view is that the Europeans have
Speaker 7: been concentrating almost all of their efforts on securing chips
Speaker 7: and rare earths, where China wants more clarity on market
Speaker 7: access to Europe.
Speaker 3: Bloomberg Steven Engel, speaking earlier this morning, you tried commission
Speaker 3: marrow chef it as scheduled to meet China's Commerce Minister
Speaker 3: Wang Wan Tao in Brussels today. The Block is pressing
Speaker 3: Beijing to address a widening trade imbalance that reached about
Speaker 3: three hundred and sixty billion euros last year and has
Speaker 3: continued to expand this year.
Speaker 2: US banks are giving up on betts for a stronger
Speaker 2: Euro this year. That's as markets predict that the US
Speaker 2: will outpace Europe in terms of raising borrowing costs. Bag
Speaker 2: C but Adebayo has more.
Speaker 8: Wall Street lenders, including JP Morgan and Morgan Stanley, are
Speaker 8: predicting a slide in the euro. Estimates see the currency
Speaker 8: dropping over three percent over the next twelve months, as
Speaker 8: trade is factor in a rate increase from the Federal
Speaker 8: Reserve in twenty twenty six, and no longer expect one
Speaker 8: in Europe. The new outlook is a turnaround from earlier
Speaker 8: this year, when policymakers in Europe, worried the euro was
Speaker 8: too strong after it hit its highest rate in five years.
Speaker 8: There are still some who hold a more benign view
Speaker 8: on the euro, believing the Fed will also hold off
Speaker 8: from a hike and remaining negative on the dollar next year. Still,
Speaker 8: those expecting a euro rally aren't disappearing fast in London,
Speaker 8: do you?
Speaker 9: Added by Bloomberg Radio.
Speaker 2: And those are our top stories. So looking at the
Speaker 2: markets this morning as we come to quarter end and
Speaker 2: the end of the first half of this year. Brent
Speaker 2: CREWDE futures trading on a seventy two handle up about
Speaker 2: half of one percent this morning. Seventy two dollars, thirty
Speaker 2: four SMP and nasdac EMAINI futures are in the green,
Speaker 2: up about half of one percent. Your SOX fifty futures
Speaker 2: also are gaining a little bit, but only up about
Speaker 2: tenth of one percent.
Speaker 3: Dollar range bound.
Speaker 2: The cospy this morning, dropping by two point well by
Speaker 2: one point nine percent right now. We've seen extreme volatility
Speaker 2: there and bonds look vulnerable. US benchmark treasuries are declining.
Speaker 2: Tenure yield up a basis point now trading at four
Speaker 2: thirty eight this morning, And to watch this week. Of course,
Speaker 2: the European inflation readings CPI across a number of European countries.
Speaker 2: US jobs report for June comes out, of course, on
Speaker 2: Thursday is a major holiday in the US. On Friday,
Speaker 2: those are the markets.
Speaker 3: In a moment, we'll bring you more on what's at
Speaker 3: stake in the EU China trade meetings today, plus why
Speaker 3: investors drawn to Greenland are wondering if the island is
Speaker 3: really open for business. But another story that caught a
Speaker 3: rye this morning on India's rush to protect its traditional products.
Speaker 3: A Conscious Thing has been reporting on how a Prada
Speaker 3: fashion show last year sparked a debate in India and
Speaker 3: around the world. A sandal that was featured by the
Speaker 3: Italian brand closely resembled an Indian kolhapuri, which is a
Speaker 3: traditional sandle named after Kolhapur. It's out in Maharashta. It
Speaker 3: sparked a backlash online, and Prada went on to acknowledge
Speaker 3: eventually the design's Indian origins, but it's become part of
Speaker 3: a wider legal and cultural debate about how products that
Speaker 3: have roots to a specific place can be protected. India's
Speaker 3: on a drive to issue ten thousand geographical indications as
Speaker 3: they're non for this kind of legal protection by twenty thirty.
Speaker 3: But it's complicated to put a legal stamp on products
Speaker 3: or traditions that have migrated across borders that may be
Speaker 3: attached to a place now, but in fact may also
Speaker 3: be claimed by other places as well, and it gets
Speaker 3: a bit complicated. You've got the champagne example, which has
Speaker 3: been around for a very long time, and that's, as
Speaker 3: the country points out and speaking to experts, that's been
Speaker 3: effectively protected because of not only their EU legal heft
Speaker 3: that comes behind it, but also a litigious group of
Speaker 3: producers who have been very careful to protect it against
Speaker 3: any impostors, shall we say that might be calling them
Speaker 3: a champagne. But it's not quite that easy when you
Speaker 3: spread across many of these products, which you know have
Speaker 3: very interesting cultural histories.
Speaker 6: Yeah.
Speaker 2: Absolutely, And it's about how you protect the wages, I suppose,
Speaker 2: and the living of the people who are practicing, you know,
Speaker 2: these traditional methods. I mean, it was interesting with this
Speaker 2: particular standal, which actually I hadn't realized until I saw
Speaker 2: the photographs in the piece, you know how recognizable it is.
Speaker 2: But they're made with particular materials, but even those local
Speaker 2: artisans have complained that actually these gi these geographical indications,
Speaker 2: they haven't protected their business. So it's also about how
Speaker 2: you can make what the French have used incredibly effectively,
Speaker 2: and Italians, lots of other European countries have used effectively
Speaker 2: as a kind of tool for safeguarding certain industries. You
Speaker 2: know how you can translate that also for India to
Speaker 2: actually mean that those products then are increased in value
Speaker 2: of the livelihoods of those people making them, maybe are sustained.
Speaker 3: I mean global trade drills have been in a huge
Speaker 3: data flox for the past year and a half as well.
Speaker 3: This is part of that story too. It's to be
Speaker 3: interesting to see how much the international organizations that have
Speaker 3: particularly protected or protected these kinds of products will stand
Speaker 3: up to scrutiny as more places want to. I suppose
Speaker 3: put a stamp on those pieces really interesting read and
Speaker 3: we'll put a link to it on our podcast notes. Well,
Speaker 3: let's bring you more now on the EU China trade
Speaker 3: talks happening in Brussels today. Our Brussels spirity Suzan lynches
Speaker 3: with us for more. Suzan, the East Trade Commissioner Marschefovitch
Speaker 3: is going to meet China's Commerce Minister Wang went Tao
Speaker 3: at a sensitive time for trade relations. What do the
Speaker 3: Europeans want from these meetings?
Speaker 10: Yeah, I think the context here is this recent debate
Speaker 10: that the European leaders had just a couple of weeks
Speaker 10: ago here in Brussels, where they have this substantial discussion
Speaker 10: on China, and it was really an indication of the
Speaker 10: hardening of Stanta, a kind of a willingness by European
Speaker 10: leaders across the board to adopt more confrontation approach when
Speaker 10: it comes to Beijing. Now in saying that they did
Speaker 10: refrain from mandating the European Commission from doing anything radical
Speaker 10: anything at the time soon. But what we do know
Speaker 10: is that Earthen Underline at that meeting presented a very
Speaker 10: clear eyed position and perspective on where she sees EU
Speaker 10: trade relations with China, sitting making lots of warnings there
Speaker 10: about the de penalty of the EU and China, and
Speaker 10: we were told at the time no leaders disagreed. Even
Speaker 10: those countries that do so much trade with China realize
Speaker 10: that the Europeans have a China problem. There's an issue
Speaker 10: of overcapacity there's an issue of this huge trade imbalance
Speaker 10: that's growing, and then something needs to be done. Now,
Speaker 10: what we do know is that probably around autumn fall
Speaker 10: time September at the European Commission will come forward with something.
Speaker 10: But whether it's about kind of strengthening existing defense trade
Speaker 10: defense instruments, or perhaps going that bit further remains.
Speaker 9: To be seen.
Speaker 10: So that's kind of the background for this discussion today.
Speaker 3: That's interesting.
Speaker 2: A China problem. Well, we've had some signals from China,
Speaker 2: so ahead of these meetings, there's been this social media
Speaker 2: account that's associated with State TV reporting that Beijing can
Speaker 2: endure a deterioration of ties with the EU. It's quite
Speaker 2: sort of forceful language. How will those messages go down
Speaker 2: in Brussels.
Speaker 9: Yeah.
Speaker 10: I think the issue, of course for the European Union
Speaker 10: is that it is so aware of its vulnerability here
Speaker 10: is that China continues to have so much leverage, and
Speaker 10: I think a very good example was a few weeks
Speaker 10: ago we reported a Chinese semiconductor maker was temporarily taking
Speaker 10: off taken off an EU sanctions list because automakers in
Speaker 10: Europe and Germany had complained to the Commission that they
Speaker 10: needed the parts that they couldn't they couldn't do their
Speaker 10: work without these, So it kind of captured this conundrum
Speaker 10: facing Europe. At the same time, I think there's a
Speaker 10: winningness now, as I said, say, for the Europeans to
Speaker 10: use some of their own levels their own China still
Speaker 10: wants to do business obviously in the European market for example,
Speaker 10: but I do think that this threat of retaliation in
Speaker 10: some way, and significantly the in prior instance, we've seen
Speaker 10: that China would be prepared to target individual countries. You know,
Speaker 10: it's even in the last couple of months men should
Speaker 10: and as some products which obviously are produced by certain
Speaker 10: countries France for example, when it comes to food and
Speaker 10: drink for example. So yes, I think that's weighing on mind.
Speaker 10: But at the end of the day, as Europe looks
Speaker 10: of this whole broader competitiveness problem, this issue of Chinese
Speaker 10: over capacity, of excessive of anti dumping, and of excessive
Speaker 10: aid by the Chinese at a time when of course
Speaker 10: domestic demand is going down in China, that is becoming
Speaker 10: a serious concern now for the Europeans.
Speaker 3: Yeah. Indeed, and perhaps an indication of other trade relations
Speaker 3: that might have been improving a big event here in
Speaker 3: Brussels last night, certainly a massive fireworks display which anyone
Speaker 3: who went to bed early was woken up promptly by.
Speaker 3: This was the celebration of two hundred and fifty years
Speaker 3: of the United States taking over parks San Cantonaera in
Speaker 3: Brussels as well, and that was something that a lot
Speaker 3: of European officials, including Marschefcvic, was that as well. You
Speaker 3: were there too, Sosan. I mean, is this a demonstration
Speaker 3: of perhaps improved relations with the US.
Speaker 9: Yeah, it was quite interesting.
Speaker 10: Sepkovich, the EU Trade Commissioner, was like a celebrity there
Speaker 10: meeting and greeting at the Greater to go to the
Speaker 10: VIP section that was there. And yeah, I mean, I
Speaker 10: think last night you had some senior European Union figures.
Speaker 10: You had Roberta Metzlat, the head of the European Parliament.
Speaker 10: You also had Mark Ruta, the Nation Secretary General, who
Speaker 10: was very prominent there in the front row with the
Speaker 10: three US ambassadors because you have an ambassador to NATO,
Speaker 10: to the EU and to Belgium, also the Belgian Prime
Speaker 10: Minister Barta Weavor and I think again Rusta was for example,
Speaker 10: Hales is the best, the greatest Secretary General of NATO ever,
Speaker 10: So there was a lot of bun on me. And
Speaker 10: I think we know that Ruster's strategy is to keep
Speaker 10: the Americans on board, particularly when it comes to defense.
Speaker 10: But no, look, I think it does go to show
Speaker 10: the power of the relationship between.
Speaker 9: The United States and the EU. Despite all the problems.
Speaker 10: This event had been controversial for some Americans living in
Speaker 10: the city. It was their big celebration of two hundred
Speaker 10: and fifty years of independence. Some were worried about, you know,
Speaker 10: it's politicized nature celebrating Donald Trump, for example. But I
Speaker 10: think there was been eight thousand people at this including
Speaker 10: some senior officials. So it does goes to show that,
Speaker 10: of course the United States still have heft here and
Speaker 10: of course the trade and actually Stephen I have a
Speaker 10: huge amount of corporates as well. At one point the
Speaker 10: ambassador to Belgium declared revealed that the event cost over
Speaker 10: five million and thankful the corporate sponsors who made that happen.
Speaker 10: So there was your usual list of American companies, everybody
Speaker 10: from Harry Davidson to the more the newer companies like
Speaker 10: Measure and Google, so there was a kind of an
Speaker 10: insight into the state of the US presence here in
Speaker 10: Europe corporate level as well.
Speaker 3: So Zan and land shar Russels Piurity, thank you very
Speaker 3: much for joining us. Stay with us. More from Bloomberg
Speaker 3: Daybreak Europe coming up after this.
Speaker 2: So fascinating insight. Then, So what goes on well in
Speaker 2: the business day and afterwards of course in the evening
Speaker 2: with all of those liberation Susie Lynch, thanks for your time.
Speaker 10: Well.
Speaker 2: Donald Trump's fixation on Greenland has thrust it into an uncomfortable,
Speaker 2: if potentially lucrative position by drawing investor interests. The question
Speaker 2: now is whether the territorally actually wants outside investment in
Speaker 2: our Copenhagen beer chief. Sarah Scholein joins us now for
Speaker 2: more on this. Sarah, good to speak to you. What
Speaker 2: kind of investors have been drawn then to Greenland?
Speaker 9: Good morning.
Speaker 11: Yeah, we've definitely seen a big search and interest from
Speaker 11: all sorts of international investors. Of course, many Americans, Danish,
Speaker 11: European they're still looking to get in on some of
Speaker 11: the seeming the endless opportunities that Greenland offers in minerals, energy, tourism,
Speaker 11: infrastructure and defense, but so far it's just incredibly difficult
Speaker 11: to make any money out there, especially in minerals. That
Speaker 11: has been described at grace lengths. The locals, officials and
Speaker 11: business leaders that are putting a very processor's spin the
Speaker 11: interest from international investors because they also know that they
Speaker 11: need this kind of investment if they want to eventually
Speaker 11: they want to get independence, they want to get out
Speaker 11: of control from Denmark.
Speaker 9: So it's just a lot of things.
Speaker 11: Going on and that they know that they really need
Speaker 11: to welcome these investors.
Speaker 3: Yeah, it's an interesting piece of reporting of the conversations
Speaker 3: of what the experience of some of those investors have
Speaker 3: been though, and some of them privately questioning whether Greenland
Speaker 3: really wants the investment at all.
Speaker 11: Yeah, it's the deception they have been given, and we
Speaker 11: hear it's been very mixed.
Speaker 9: Greenland is very open.
Speaker 11: They also say they said that many times Greenland is
Speaker 11: open for business, but when it really comes down to
Speaker 11: actually setting up business, many people find regulatory hurdles, legal uncertainty,
Speaker 11: lots of disputes, and then the things are moving very slowly.
Speaker 11: There have been a case of some examples in recent
Speaker 11: years where companies that have really gotten burned, and I
Speaker 11: think one of the most famous.
Speaker 9: One is in the Quinifel.
Speaker 11: It's one of the world's largest undeveloped earth deposits, where
Speaker 11: there's Australian mining company Energy Transition Miniermals. They spent nearly
Speaker 11: fifteen years their in development getting the mind ready and
Speaker 11: then uranium, which also mined this site, became the defining
Speaker 11: issue in one of the elections and then all of
Speaker 11: a sudden, Greenland banned uranium mining and this Australian company
Speaker 11: had to give up all an investment, and I think
Speaker 11: that really become a prominent example of how easily the
Speaker 11: Greenlandic Greenlanders can take these projects hostage. So local politics
Speaker 11: really take up a lot of space in Greenland. And
Speaker 11: for international investors that are used to maybe invest in
Speaker 11: Europe in the US there is a different environment. So
Speaker 11: it's it's just a very complicated situation because the Greenland
Speaker 11: is also just essentially trying to protect your NATI. Sure,
Speaker 11: they were trying to protect the population and they've seen
Speaker 11: what can happen in other places if they give up
Speaker 11: too much control. Iceland is often referred to an example
Speaker 11: in the tourism industry.
Speaker 9: Great tourism in Iceland.
Speaker 11: The problem for a lot of Iceland, and there's a
Speaker 11: lot of money actually ends up in foreign hands because
Speaker 11: it's international companies that have come in.
Speaker 2: Yeah, and of course you've got to remember it's still
Speaker 2: very very sparsely populated. Isn't there only fifty seven thousand
Speaker 2: Greenlanders in all? I mean, do you think the situation
Speaker 2: is likely to change?
Speaker 9: Well, it has to.
Speaker 11: Greenland has a goal where it wants to diversify its economy.
Speaker 11: They also want to lessen reliance on the Danish subsidies.
Speaker 11: They get around seven hundred billion dollars from the Danish
Speaker 11: government every year, and they have a goal of advancing
Speaker 11: towards independence. To get that, they do need foreign investments
Speaker 11: and they need an economy that is less reliant right
Speaker 11: now on fishing, and they need more tours and they
Speaker 11: need more minerals. So it's still in this it's a
Speaker 11: really tough dilemma for them because they really want the investment,
Speaker 11: but they're also very afraid to give up the control.
Speaker 3: Thanks for listening to Bloomberg Daybreak Europe.
Speaker 2: If you're enjoying the podcast, give us a follow, leave
Speaker 2: a rating or review, and maybe send it to that
Speaker 2: one friend or colleague who's always trying to keep up
Speaker 2: with the news.
Speaker 3: And if one podcast today isn't enough for you, you
Speaker 3: can also listen to us live every weekday from six
Speaker 3: am in London on DAB Radio, on tune in and
Speaker 3: on the Bloomberg Business app.
Speaker 2: Oh if you've got a smart speaker nearby, just say
Speaker 2: play Bloomberg Radio.