April 22, 2024 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today’s podcast:
(1) US approval of more than $60 billion in aid throws a lifeline to Ukraine’s beleaguered military, though it’s unlikely to turn the tide in the war on its own.
(2) After years of working to assure the US government that its popular social media app isn’t a threat to national security, TikTok’s loss in that fight now seems almost inevitable.
(3) The European Central Bank won’t be swayed from a first interest-rate cut in June by oil price uncertainty, Governing Council member Francois Villeroy de Galhau said.
(4) Asking prices for UK homes rose at the highest annual pace in 12 months, driven by more high-end houses coming to market, according to the online sales portal Rightmove.
(5) Tesla is consumed by chaos in shift to Musk’s robotaxi dream: the stock is sliding, a cheaper electric car is deprioritized and the CEO is riling the workforce with his biggest layoffs yet.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
Ukrainian President Vladimir Zelenski says he's grateful to US politicians
who've backed a massive foreign aid package for his country.
The sixty one billion dollar bill includes air defense missiles
and artillery shells, as well as seven billion dollars for
US military operations in the region. The legislation, passed by
the House over the weekend, will likely be signed into
(00:28):
law this week after a Senate vote in the coming days.
Speaking to NBC's Meet the Press, Zelenski said he believes
the aid package will prevent the war with Russia from expanding.
Speaker 3 (00:39):
This aid will strengthen Ukraine. We did lose the initiative
there now to have all the chance to stabilize the
situation and to or take the initiative.
Speaker 2 (00:53):
Zelenski's comment, spoken there by a translator, were echoed by
those of the UK Foreign Secretary David Cameron. Welcome to
the extra support for Ukraine, calling us a vital step forward.
Speaker 1 (01:04):
The US House of Representatives also tied legislation requiring TikTok's owner,
Bike Dance to sell its stake in the social media
firm into that Ukraine aid bill. If the Chinese parent
company refuses to divest, its platform may be banned in
the US. Sources have told Bloomberg that Bike Dance intends
(01:25):
to fight the effort in court and exhaust all legal
challenges before it considers any kind of selloff. Meanwhile, the
TikTok executive who was tasked with placating US lawmakers concerns
about the social media platform, is reportedly leaving the company.
Bloomberg's Ed Baxter has the details.
Speaker 4 (01:43):
The reports say that TikTok is letting him go, saying
he wasn't doing enough to stave off US security concerns
regarding its ties with Honor Bike Dance in China. Eric
Anderson's role had been incrementally reduced, but with a passage
of the devest bill passed by the House over the week,
and it looks now more imminent. A TikTok statement said
the reports were false, but then the publication the information
(02:07):
said Anderson has informed his legal team that he is
leaving and that it is his decision. Head Baxter Bloomberg.
Speaker 2 (02:15):
Radio Tesla has once again slashed the price of its
vehicles as it looks to defend its market share from
rivals in China and elsewhere. The aggressive move comes at
a tough time for the automaker, with its share price
down around forty percent this year. Last week, the ev
Giant announced global job cuts of more than ten percent
(02:36):
under recall of its new cyber truck. Meanwhile, Bloomberg has
learned that a number of staff have been left unsettled
by CEO Elon Musk's sudden focus on a self driving
vehicle robotaxi. Bloomberg's Global business editor Peter Verko says the
change of direction is dizzying.
Speaker 5 (02:55):
Even by Elon Musk's standards. It's been a pretty wild week.
I think what does want more than anything? Though He's
do just some clarity on the strategy. It was only
three months ago that on the earnings call, mask was
talking up progress on this twenty five thousand dollars mass
market car. Last week the whole thing seems to have
swung towards his autonomous self driving taxi or robotaxi.
Speaker 2 (03:19):
Peter Verko's comments come as markets await Tesla's latest set
of results on Tuesday. The firm is expected to report
a forty percent plunge in operating profits and its first
revenue decline in four years.
Speaker 1 (03:33):
ECB rate setter Frans wavinwood Gallo says that oil market
uncertainty won't dissuade the Central Bank from cutting rates in June.
His reasoning, even if conflict did push up oil costs,
policymakers would have to analyze whether those shots fueled underlying
prices and inflation expectations. The Bank of France governor also
(03:55):
made clear that policymakers shouldn't wait too long to lower
boring costs. A surprise. Markets curtly expect the ECB to
cut rates by zero point twenty five percent at its
next meeting on the sixth of June.
Speaker 2 (04:09):
The Conservative MP Mark Menzies is quitting the party and
won't stand at the next election after being accused of misconduct.
The MP for if for filed in Lancashire reportedly telephoned
an elderly local activist at three am one morning asking
her to give him five thousand pounds Bloomber Exchanmes Wilcock
as more.
Speaker 6 (04:29):
With Menzies, there are now sixty four Conservative MPs who
won't try and keep their seats in the next election.
That's eighteen percent of the party. The now x Tory
MP's exit spares the Prime Minister another by election and
more days of lurid headlines. Richie Sinak will be hoping
to rally his party around immigration with a vote on
(04:49):
his flagship Rwanda bill coming later today, but it doesn't
change the difficult narrative forming around the government around sleees
and electoral doom. In London, James Wilcock, Bloomberg Radio.
Speaker 1 (05:02):
And Staying in the UK asking prices for homes here
are rising at their highest rate in a year. The
increase is largely being driven by figures at the top
end of the market. Bluebag's Tea ad Bayer has the details.
Speaker 7 (05:15):
Buying a house in the UK will now cost you
just over three hundred and seventy two thousand pounds on average,
according to data from right Move. That's up one point
seven percent from last year and only five hundred and
seventy pounds below the all time record for UK home
prices seen in May twenty twenty three. The price gains
are being driven by larger four and five bed homes,
(05:38):
a corner of the market that has seen the strongest
start of the year, as the number of new sellers
rose eighteen percent from twenty twenty three, says the online salesportal,
But those looking to purchase their first homes are struggling
to keep up the highest interest rates in sixteen years,
combined with surging inflation, have drained consumer finances, factors which
(06:00):
i'd limit further house price growth. In twenty twenty four,
in London, tee you. We're at a Bayo Bloomberg Radio.
Speaker 2 (06:06):
Those are your top stories on the markets. The MSCIO
specific index is up eight tenths of one percent, eurostocks,
fifty futures are three tenths of one percent higher, and
the ten yure treasury yield up three and a half
basis points to four point six six percent.
Speaker 1 (06:20):
Now in a moment, we'll bring you more on the
US A bill now on a fast track to grant
aid to Ukraine, Israel and Gaza, plus force the Chinese
owners of TikTok to sell its steak or face a
ban in the United States. But before we get to that,
another story called our I this morning, how a craze
for bubble tea has created at least half a dozen
(06:44):
billionaires in China.
Speaker 2 (06:46):
I feel like I have to preface by saying that
I don't get bubble tea, regular tea, fine bubble tea.
Speaker 1 (06:51):
Now I'm afraid I have a hole in my wallet
due to bubble tea.
Speaker 2 (06:54):
And what is this you are you buying for members
of your family?
Speaker 1 (06:58):
For members of the family, I will put it that way.
The craze has hit London probably did about a couple
of years ago. Everywhere it's very expensive. Quite shagree, but yes,
I think this read on the Boomberg terminal though about
the money behind it is totally fascinating.
Speaker 2 (07:11):
Yeah, and it comes ahead of the China's number three
bubble tea chain is listing in Hong Kong tomorrow Buy
to Buydow and it's expected to raise more than three
hundred million US dollars and it sort of speaks to
the craze around it. But what's interesting is is the
competition in the market in China is so fierce. And
what's distinguished this company is they charge less than their rivals.
(07:32):
They've managed to build market share grow their sales because
they're charging around two dollars for their half liter tea,
which is around half of what the industry standard was
when it comes to the prices they're charging in China.
But there's a question too. Of course, Chinese economy is slowing,
customers are reigning in their spending. Maybe this is something
that might actually impact this market as much as everything else.
(07:54):
Also comes at a very interesting time for IBOs in
Hong Kong as well. So there's a whole number of
strands to the story billionaires, bubble tea, stock market listings.
It's got a t all.
Speaker 1 (08:01):
Yeah, absolutely, and it's in Bloomberg BusinessWeek of course, so
all the bees. Let's bring you that now, though, back
to our top story, shall we. The US Senate is
expected to approve more than ninety five billion dollars in
foreign aid, including funding for Ukraine, Israel, and Taiwan on Tuesday.
For Ukraine, the assistance is expected to reach the military
(08:22):
pretty swiftly, but it's also seen as unlikely to turn
the tide of the war on its own. Joining us
now to discuss is Bloomberg's EMEA news director Roslyn Matheson,
good morning. Was good to see you in person. The
aid package was long delayed. It'd been broken down into
pieces for it to be passed by the legislators. What
(08:43):
is actually part of this huge package.
Speaker 8 (08:46):
Well, it's a whole lot of different stuff, that's part
of it. Really, most of it is to allow the
US to buy more weapons to send to these places,
particularly Ukraine, but also Israel, which has used a lot
of kit It's Iron Dome military defense system of late
defending against missile and other attacks on Israel. So it's
(09:07):
to allow them to replenish their stock. Some of it's
quite specific. It's in the case of Taiwan, to support
some development around submarines, for example. In Ukraine's case, it's
also about economic aid loans to Ukraine to help keep
literally the lights on for the government and the administration.
So it's a conglomertive stuff, as you say, broken down
(09:28):
into pieces to allow it to get through it or
come together again in one place to get to the Senate,
of course, where it will pass, as you say, likely
on Tuesday. But the idea is simply to really allow
the faster flow of weaponry into various places, most of
all Ukraine.
Speaker 2 (09:44):
Will it be enough though, to make a difference to
Ukraine's fight against Russia.
Speaker 8 (09:49):
Well, it sounds as though the US has been preparing
for this. So there is quite a lot of equipment
piled up near the border with Poland that can move
pretty quickly, but either way, we're still looking at least
a matter of wa for that to happen, and certainly
for some of the longer range missile stuff that they're
talking about as part of this bill, that's going to
take longer, and that's what Ukraine says it really needs.
(10:10):
And at this point, you know, any aid obviously is
better than none, but aid of this magnitude six months
ago probably would have been more beneficial on the battle
for Ukraine than coming now. And the question is, has
momentum really turned in favor of Russia. We can see
they're making gains on the ground, we can see the
(10:31):
progress there. Getting those weapons to the front line, including
things like artillery and ammunition, will take time, and is
it really too late to stem that tide. That is
the question, especially, you know, as they're gearing up for
fresh offensive. So while the aid is no doubt very
welcomed by Ukraine, you can see the comments from the government,
(10:52):
especially Presidents Lynski yesterday, he's also still a bit cautious,
like he knows momentum is against them and this aid
may not really do that much to change the equation
on the ground.
Speaker 1 (11:04):
Also included in this bill, as you say, quite sprawling,
and it touches on many issues. The Iranian sanctions, US
sanctions against Iran, Will those make a difference to the
oil price?
Speaker 8 (11:18):
Well, that's the thing. Actually last week we had a
Twitter space with some of our experts in house and
we debated Iran sections on quite an existential level, because
a bit like Russia and other parts of the world,
there's pretty much nothing in the Iran that's not sanctioned
at this point, and has that really deterred Iran? Not arguably,
because the main thing the US would need to do
is really seek to take around out of the global
(11:39):
oil market and stop it supplying oil anywhere, and an
election year with one eye inflation in the economy, it's
unlikely that the US administration is going to want to
do that. And so you're still allowing around to supply
the market different parts of the market with oil, and
that's important for Iran's economy and therefore for its war machinery.
So unless you actually change the supply dynamic, you're not
(12:02):
going to change Irun's behavior. And you can see the
high caution about anything that might cause actual proper disruption
to the aill market and so the aill price has
gone up a bit as we've seen some of these
strikes back and forth. You've seen a premium come into
oil on the idea of geopolitical risk, but so far
we've not seen any sign that supply will properly be
(12:22):
disrupted when it comes to a run.
Speaker 2 (12:24):
Just a word on what this means in domestic US
politics as well, because the Speaker ignored demands to add
US border legislation into this package as well. What's the
dynamic around that and what does that mean for his position?
Speaker 8 (12:38):
Well, his position is probably a little bit precarious as
a result. I mean, you have some members of his
party saying they're going to have a vote to oust him.
You know that's not going to happen immediately with the
House on recess, but he's obviously taken a call that
he wants to throw his lot in with the Hawks
and the Republican Party. So you've got two camps essentially
at this point. You've got the Hawks who say the
US needs to be out in the world militarily defend
(13:01):
standing up for what it believes, and you've got those
who are more isolationist foreign policies, saying the EU I
shouldn't be spending its time on other people's conflicts overseas.
So he's got some backing from the hawks in the
Republican camp. And most interestingly, he did meet with the
Republican nominee or the presumptive Republican nominee, Donald Trump a
couple of weeks ago. They had a meeting and a
(13:22):
long chat. We don't quite know what happened in that conversation,
but one would imagine that this came up, and possibly
if he thinks that he's managed to convince Donald Trump
and he's got his support, that may have been a
factor and his decision to move forward. And of course
Donald Trump is now very influential on what happens within
Congress itself when it comes to the Republicans.
Speaker 1 (13:43):
Yeah. Absolutely, wells, thank you so much for your time.
Bluebag's EMEA news director Roslind Matheson.
Speaker 2 (13:49):
We want to dig into another aspect of that aid package,
which is part of that legislation would force the Chinese
controlled bitdowns to divest itself from the social media app
TikTok or face a Ba.
Speaker 4 (14:00):
In the US, Our.
Speaker 2 (14:01):
Asia Government of Politics correspondent Rebecca Chung Wilkins is with
US for more, Rebecca has spent years trying to convince
the US that it's not a national security Throughout that
effort seemed to have failed.
Speaker 9 (14:12):
Now, yes, I mean in the short answer is yes,
I mean various US actors have tried to figure out
some way to curb or restrict or outright ban TikTok
in multiple other bills in Congress and so on in
other ways, including for example, also former President Trump. It
does seem that this sort of particular framework, this divestor ban,
(14:33):
manages to have threaded that noodle worth saying, though, I
think that behind the scenes, you know, both the company
and Chinese embassy workers, for example, reportedly still meeting with
congressional staff, still trying to lobby against the bill and
trying to work work magic behind the scenes. Also, of course,
(14:53):
you've seen on the app itself TikTok encouraging users to
call their senators and impose this, sorry, oppose this, Excuse me.
But it does seem like we are moving from that
sort of discussion influence phase to litigation phase, and TikTok
has said it's going to exhaust all the possible legal
avenues it can to try and prevent any kind of divestment,
(15:14):
and Beijing potentially has the means to block any such
divestment as well.
Speaker 2 (15:20):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (15:26):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 2 (15:32):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (15:38):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (15:46):
I'm Caroline Hipka and I'm Stephen Carroll. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg day Break Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
Ukrainian President Vladimir Zelenski says he's grateful to US politicians
who've backed a massive foreign aid package for his country.
The sixty one billion dollar bill includes air defense missiles
and artillery shells, as well as seven billion dollars for
US military operations in the region. The legislation, passed by
the House over the weekend, will likely be signed into
(00:28):
law this week after a Senate vote in the coming days.
Speaking to NBC's Meet the Press, Zelenski said he believes
the aid package will prevent the war with Russia from expanding.
Speaker 3 (00:39):
This aid will strengthen Ukraine. We did lose the initiative
there now to have all the chance to stabilize the
situation and to or take the initiative.
Speaker 2 (00:53):
Zelenski's comment, spoken there by a translator, were echoed by
those of the UK Foreign Secretary David Cameron. Welcome to
the extra support for Ukraine, calling us a vital step forward.
Speaker 1 (01:04):
The US House of Representatives also tied legislation requiring TikTok's owner,
Bike Dance to sell its stake in the social media
firm into that Ukraine aid bill. If the Chinese parent
company refuses to divest, its platform may be banned in
the US. Sources have told Bloomberg that Bike Dance intends
(01:25):
to fight the effort in court and exhaust all legal
challenges before it considers any kind of selloff. Meanwhile, the
TikTok executive who was tasked with placating US lawmakers concerns
about the social media platform, is reportedly leaving the company.
Bloomberg's Ed Baxter has the details.
Speaker 4 (01:43):
The reports say that TikTok is letting him go, saying
he wasn't doing enough to stave off US security concerns
regarding its ties with Honor Bike Dance in China. Eric
Anderson's role had been incrementally reduced, but with a passage
of the devest bill passed by the House over the week,
and it looks now more imminent. A TikTok statement said
the reports were false, but then the publication the information
(02:07):
said Anderson has informed his legal team that he is
leaving and that it is his decision. Head Baxter Bloomberg.
Speaker 2 (02:15):
Radio Tesla has once again slashed the price of its
vehicles as it looks to defend its market share from
rivals in China and elsewhere. The aggressive move comes at
a tough time for the automaker, with its share price
down around forty percent this year. Last week, the ev
Giant announced global job cuts of more than ten percent
(02:36):
under recall of its new cyber truck. Meanwhile, Bloomberg has
learned that a number of staff have been left unsettled
by CEO Elon Musk's sudden focus on a self driving
vehicle robotaxi. Bloomberg's Global business editor Peter Verko says the
change of direction is dizzying.
Speaker 5 (02:55):
Even by Elon Musk's standards. It's been a pretty wild week.
I think what does want more than anything? Though He's
do just some clarity on the strategy. It was only
three months ago that on the earnings call, mask was
talking up progress on this twenty five thousand dollars mass
market car. Last week the whole thing seems to have
swung towards his autonomous self driving taxi or robotaxi.
Speaker 2 (03:19):
Peter Verko's comments come as markets await Tesla's latest set
of results on Tuesday. The firm is expected to report
a forty percent plunge in operating profits and its first
revenue decline in four years.
Speaker 1 (03:33):
ECB rate setter Frans wavinwood Gallo says that oil market
uncertainty won't dissuade the Central Bank from cutting rates in June.
His reasoning, even if conflict did push up oil costs,
policymakers would have to analyze whether those shots fueled underlying
prices and inflation expectations. The Bank of France governor also
(03:55):
made clear that policymakers shouldn't wait too long to lower
boring costs. A surprise. Markets curtly expect the ECB to
cut rates by zero point twenty five percent at its
next meeting on the sixth of June.
Speaker 2 (04:09):
The Conservative MP Mark Menzies is quitting the party and
won't stand at the next election after being accused of misconduct.
The MP for if for filed in Lancashire reportedly telephoned
an elderly local activist at three am one morning asking
her to give him five thousand pounds Bloomber Exchanmes Wilcock
as more.
Speaker 6 (04:29):
With Menzies, there are now sixty four Conservative MPs who
won't try and keep their seats in the next election.
That's eighteen percent of the party. The now x Tory
MP's exit spares the Prime Minister another by election and
more days of lurid headlines. Richie Sinak will be hoping
to rally his party around immigration with a vote on
(04:49):
his flagship Rwanda bill coming later today, but it doesn't
change the difficult narrative forming around the government around sleees
and electoral doom. In London, James Wilcock, Bloomberg Radio.
Speaker 1 (05:02):
And Staying in the UK asking prices for homes here
are rising at their highest rate in a year. The
increase is largely being driven by figures at the top
end of the market. Bluebag's Tea ad Bayer has the details.
Speaker 7 (05:15):
Buying a house in the UK will now cost you
just over three hundred and seventy two thousand pounds on average,
according to data from right Move. That's up one point
seven percent from last year and only five hundred and
seventy pounds below the all time record for UK home
prices seen in May twenty twenty three. The price gains
are being driven by larger four and five bed homes,
(05:38):
a corner of the market that has seen the strongest
start of the year, as the number of new sellers
rose eighteen percent from twenty twenty three, says the online salesportal,
But those looking to purchase their first homes are struggling
to keep up the highest interest rates in sixteen years,
combined with surging inflation, have drained consumer finances, factors which
(06:00):
i'd limit further house price growth. In twenty twenty four,
in London, tee you. We're at a Bayo Bloomberg Radio.
Speaker 2 (06:06):
Those are your top stories on the markets. The MSCIO
specific index is up eight tenths of one percent, eurostocks,
fifty futures are three tenths of one percent higher, and
the ten yure treasury yield up three and a half
basis points to four point six six percent.
Speaker 1 (06:20):
Now in a moment, we'll bring you more on the
US A bill now on a fast track to grant
aid to Ukraine, Israel and Gaza, plus force the Chinese
owners of TikTok to sell its steak or face a
ban in the United States. But before we get to that,
another story called our I this morning, how a craze
for bubble tea has created at least half a dozen
(06:44):
billionaires in China.
Speaker 2 (06:46):
I feel like I have to preface by saying that
I don't get bubble tea, regular tea, fine bubble tea.
Speaker 1 (06:51):
Now I'm afraid I have a hole in my wallet
due to bubble tea.
Speaker 2 (06:54):
And what is this you are you buying for members
of your family?
Speaker 1 (06:58):
For members of the family, I will put it that way.
The craze has hit London probably did about a couple
of years ago. Everywhere it's very expensive. Quite shagree, but yes,
I think this read on the Boomberg terminal though about
the money behind it is totally fascinating.
Speaker 2 (07:11):
Yeah, and it comes ahead of the China's number three
bubble tea chain is listing in Hong Kong tomorrow Buy
to Buydow and it's expected to raise more than three
hundred million US dollars and it sort of speaks to
the craze around it. But what's interesting is is the
competition in the market in China is so fierce. And
what's distinguished this company is they charge less than their rivals.
(07:32):
They've managed to build market share grow their sales because
they're charging around two dollars for their half liter tea,
which is around half of what the industry standard was
when it comes to the prices they're charging in China.
But there's a question too. Of course, Chinese economy is slowing,
customers are reigning in their spending. Maybe this is something
that might actually impact this market as much as everything else.
(07:54):
Also comes at a very interesting time for IBOs in
Hong Kong as well. So there's a whole number of
strands to the story billionaires, bubble tea, stock market listings.
It's got a t all.
Speaker 1 (08:01):
Yeah, absolutely, and it's in Bloomberg BusinessWeek of course, so
all the bees. Let's bring you that now, though, back
to our top story, shall we. The US Senate is
expected to approve more than ninety five billion dollars in
foreign aid, including funding for Ukraine, Israel, and Taiwan on Tuesday.
For Ukraine, the assistance is expected to reach the military
(08:22):
pretty swiftly, but it's also seen as unlikely to turn
the tide of the war on its own. Joining us
now to discuss is Bloomberg's EMEA news director Roslyn Matheson,
good morning. Was good to see you in person. The
aid package was long delayed. It'd been broken down into
pieces for it to be passed by the legislators. What
(08:43):
is actually part of this huge package.
Speaker 8 (08:46):
Well, it's a whole lot of different stuff, that's part
of it. Really, most of it is to allow the
US to buy more weapons to send to these places,
particularly Ukraine, but also Israel, which has used a lot
of kit It's Iron Dome military defense system of late
defending against missile and other attacks on Israel. So it's
(09:07):
to allow them to replenish their stock. Some of it's
quite specific. It's in the case of Taiwan, to support
some development around submarines, for example. In Ukraine's case, it's
also about economic aid loans to Ukraine to help keep
literally the lights on for the government and the administration.
So it's a conglomertive stuff, as you say, broken down
(09:28):
into pieces to allow it to get through it or
come together again in one place to get to the Senate,
of course, where it will pass, as you say, likely
on Tuesday. But the idea is simply to really allow
the faster flow of weaponry into various places, most of
all Ukraine.
Speaker 2 (09:44):
Will it be enough though, to make a difference to
Ukraine's fight against Russia.
Speaker 8 (09:49):
Well, it sounds as though the US has been preparing
for this. So there is quite a lot of equipment
piled up near the border with Poland that can move
pretty quickly, but either way, we're still looking at least
a matter of wa for that to happen, and certainly
for some of the longer range missile stuff that they're
talking about as part of this bill, that's going to
take longer, and that's what Ukraine says it really needs.
(10:10):
And at this point, you know, any aid obviously is
better than none, but aid of this magnitude six months
ago probably would have been more beneficial on the battle
for Ukraine than coming now. And the question is, has
momentum really turned in favor of Russia. We can see
they're making gains on the ground, we can see the
(10:31):
progress there. Getting those weapons to the front line, including
things like artillery and ammunition, will take time, and is
it really too late to stem that tide. That is
the question, especially, you know, as they're gearing up for
fresh offensive. So while the aid is no doubt very
welcomed by Ukraine, you can see the comments from the government,
(10:52):
especially Presidents Lynski yesterday, he's also still a bit cautious,
like he knows momentum is against them and this aid
may not really do that much to change the equation
on the ground.
Speaker 1 (11:04):
Also included in this bill, as you say, quite sprawling,
and it touches on many issues. The Iranian sanctions, US
sanctions against Iran, Will those make a difference to the
oil price?
Speaker 8 (11:18):
Well, that's the thing. Actually last week we had a
Twitter space with some of our experts in house and
we debated Iran sections on quite an existential level, because
a bit like Russia and other parts of the world,
there's pretty much nothing in the Iran that's not sanctioned
at this point, and has that really deterred Iran? Not arguably,
because the main thing the US would need to do
is really seek to take around out of the global
(11:39):
oil market and stop it supplying oil anywhere, and an
election year with one eye inflation in the economy, it's
unlikely that the US administration is going to want to
do that. And so you're still allowing around to supply
the market different parts of the market with oil, and
that's important for Iran's economy and therefore for its war machinery.
So unless you actually change the supply dynamic, you're not
(12:02):
going to change Irun's behavior. And you can see the
high caution about anything that might cause actual proper disruption
to the aill market and so the aill price has
gone up a bit as we've seen some of these
strikes back and forth. You've seen a premium come into
oil on the idea of geopolitical risk, but so far
we've not seen any sign that supply will properly be
(12:22):
disrupted when it comes to a run.
Speaker 2 (12:24):
Just a word on what this means in domestic US
politics as well, because the Speaker ignored demands to add
US border legislation into this package as well. What's the
dynamic around that and what does that mean for his position?
Speaker 8 (12:38):
Well, his position is probably a little bit precarious as
a result. I mean, you have some members of his
party saying they're going to have a vote to oust him.
You know that's not going to happen immediately with the
House on recess, but he's obviously taken a call that
he wants to throw his lot in with the Hawks
and the Republican Party. So you've got two camps essentially
at this point. You've got the Hawks who say the
US needs to be out in the world militarily defend
(13:01):
standing up for what it believes, and you've got those
who are more isolationist foreign policies, saying the EU I
shouldn't be spending its time on other people's conflicts overseas.
So he's got some backing from the hawks in the
Republican camp. And most interestingly, he did meet with the
Republican nominee or the presumptive Republican nominee, Donald Trump a
couple of weeks ago. They had a meeting and a
(13:22):
long chat. We don't quite know what happened in that conversation,
but one would imagine that this came up, and possibly
if he thinks that he's managed to convince Donald Trump
and he's got his support, that may have been a
factor and his decision to move forward. And of course
Donald Trump is now very influential on what happens within
Congress itself when it comes to the Republicans.
Speaker 1 (13:43):
Yeah. Absolutely, wells, thank you so much for your time.
Bluebag's EMEA news director Roslind Matheson.
Speaker 2 (13:49):
We want to dig into another aspect of that aid package,
which is part of that legislation would force the Chinese
controlled bitdowns to divest itself from the social media app
TikTok or face a Ba.
Speaker 4 (14:00):
In the US, Our.
Speaker 2 (14:01):
Asia Government of Politics correspondent Rebecca Chung Wilkins is with
US for more, Rebecca has spent years trying to convince
the US that it's not a national security Throughout that
effort seemed to have failed.
Speaker 9 (14:12):
Now, yes, I mean in the short answer is yes,
I mean various US actors have tried to figure out
some way to curb or restrict or outright ban TikTok
in multiple other bills in Congress and so on in
other ways, including for example, also former President Trump. It
does seem that this sort of particular framework, this divestor ban,
(14:33):
manages to have threaded that noodle worth saying, though, I
think that behind the scenes, you know, both the company
and Chinese embassy workers, for example, reportedly still meeting with
congressional staff, still trying to lobby against the bill and
trying to work work magic behind the scenes. Also, of course,
(14:53):
you've seen on the app itself TikTok encouraging users to
call their senators and impose this, sorry, oppose this, Excuse me.
But it does seem like we are moving from that
sort of discussion influence phase to litigation phase, and TikTok
has said it's going to exhaust all the possible legal
avenues it can to try and prevent any kind of divestment,
(15:14):
and Beijing potentially has the means to block any such
divestment as well.
Speaker 2 (15:20):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (15:26):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 2 (15:32):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (15:38):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (15:46):
I'm Caroline Hipka and I'm Stephen Carroll. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg day Break Europe
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations.
The Nikki Glaser Podcast
Every week comedian and infamous roaster Nikki Glaser provides a fun, fast-paced, and brutally honest look into current pop-culture and her own personal life.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.