May 14, 2025 • 19 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) The Trump administration is clearing a path for two key Persian Gulf allies to pursue their artificial intelligence ambitions — and some of the biggest US tech companies are seizing on that opening with plans to spend billions of dollars in the region.
(2) President Donald Trump and Saudi Crown Prince Mohammed bin Salman touted a pledge for $1 trillion in commercial deals in Riyadh on Tuesday, a staggering figure that doesn’t quite stand up to scrutiny.
(3) President Donald Trump said a luxury jet being offered by the government of Qatar would be used as a temporary Air Force One, indicating an intention to accept a gift that has sparked ethical and security concerns in Washington.
(4) It's only been 6 weeks since the UK's non-dom tax regime ended. It gave wealthy individuals favourable tax treatment for overseas earnings. Now Italy is proving an early winner in the race to attract wealthy investors from the UK.
(5) NATO allies have started cobbling together an agreement to significantly boost defense spending in a way that may assuage US President Donald Trump’s demand to spend 5% of economic output on the military.
(6) The UK and EU are in the toughest stage of talks to agree a common security pact, Defence Secretary John Healey said, as the government seeks to secure access to European spending programs for British firms.
Podcast conversation:The Designer Who Taught American Women How to Dress
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Blueberg DAYBAQ podcast, available every morning on Apple,
Spotify or wherever you listen. It's Wednesday, the fourteenth of
May in London. I'm Caroline Hepki.
Speaker 3 (00:18):
And I'm Stephen Carroll.
Speaker 4 (00:19):
Coming up today, the US prepares to unveil massive AI
chip deals with Gulf State as the Trump administration throws
out Biden era restrictions.
Speaker 2 (00:29):
NATO sketches out a plan to meet President Trump's call
for five percent defense spending as the UK and EU
remain locked in talks over a common Security pact.
Speaker 4 (00:39):
Plus Milan moves Italy's financial capital proves to be an
early winner in the race to attract wealthy investors after
the UK's non domb rollback.
Speaker 2 (00:49):
Let's start with a roundup of our top stories.
Speaker 4 (00:51):
The United States is clearing a path for Saudi Arabia
and the United Arab Emirates to ramp up AI spending
as the US President uses his visit to the region
to forage deeper business ties with the Gulf States. Under
agreements expected to be unveiled in the coming days, the
nations are poised to secure broader access to advanced chips
from Nvidia and AMD, which are considered the gold standard
(01:14):
for running AI models. Bloomberg's executive editor for Global Tech,
Peter Alstrom, says the deals should not be understated.
Speaker 3 (01:22):
This is a very big deal.
Speaker 5 (01:23):
I mean, at a high level, it's a sea change
really in US policy towards some of these countries and
their access to American technologies, including AI. The Biden administration
had implemented a series of curbs on what foreign countries
could buy, especially AI chips. The most advanced ones are
made by Invidio, of course, and the Biden administration had
(01:44):
a very complex approach a framework that they passed the
last week in office where they under this rule called
the AI diffusion Rule, there are three tiers of different
countries who get different access to different levels of chips
under that framework.
Speaker 6 (01:57):
The Trump administration has now just thrown that out else
Fro'm referring there to the Trump Administration's plan to overhaul
regulations on the global export of semiconductors used in artificial intelligence.
Speaker 4 (02:08):
The move would end the Biden era approach, which had
drawn strenuous objections from US allies and companies, including Nvidia
and Oracle.
Speaker 2 (02:17):
In read Saudi Arabia's capital. President Trump was joined by
Crown Prince Mohammed bin Salman in hailing closer commercial relations.
The two touted plans for one trillion dollars in commercial deals.
The conference signage listed deals totaling just over three hundred
billion dollars. Earlier on Tuesday, the White House has said
(02:37):
the figure was six hundred billion dollars. Now, the one
trillion dollar figure roughly matches Saudi Arabia's entire gross domestic product.
Bloomberg's Nick Wadhams explains the details of these agreements will
be important.
Speaker 7 (02:51):
The question here is really trying to figure out how
much of these commitments are just on paper and how
much of them are actually going to go through. That
big top line number of six hundred billion dollars that
fits with what Saudi Arabia had said it wanted to
do over the next four years and enhance trade and
investment with the US.
Speaker 2 (03:10):
Blueberg's Nick Wadams in Washington, the White House says the
deals aimed to boost US industries in energy, defense, and tech,
as well as to provide access to key global resources.
Without giving full details.
Speaker 4 (03:24):
The US President says a luxury jet offered by the
Katari government will be used as a temporary air Force one,
indicating he plans to accept the gift despite the legal
and ethical concerns. On social media, Donald Trump wrote that
only a fool would not accept the aircraft, as he
criticized Boeing's delays in delivering new jets for government use.
(03:44):
Speaking in the US Senate, Democrat minority leader Chuck Schumer
questioned the terms of the deal.
Speaker 8 (03:49):
What security modifications would be needed to ensure a foreign
sourced air Force one is safe to use? If this
is as president promise a free jet, will the guitaries
pay for those highly sensitive installations or will American taxpayers
cover the cost?
Speaker 4 (04:09):
Chuck Schimmer, speaking as The move has also sparked backlash
among some of the president's supporters. Commentator Ben Shapiro asked
how Trump photers would react if a Democrat had done this,
while far right activist Laura Lumer posted on x that
the gift would be a stain on the Trump administration.
Speaker 2 (04:24):
NATO allies are in talks over how to boost defense
spending in a way that might answer calls from US
President Donald Trump. Bloomberg has learned that military negotiators are
discussing how countries might reach a target of five percent
spending five percent of GDP on defense in the long term,
bloombergs James Wilcock has more.
Speaker 9 (04:44):
One in four NATO allies still don't spend two percent
of their GDP on defense, so setting a target of
five percent would be a major jump. But countries want
to give President Trump a win at a major NATO
summit this June to keep the US committed to the
military alliance. That these talks now are centered on how
countries will afford it, what counts as defense spending, and
(05:06):
how that target might be enforced. In London, James Wilcock Bloomberg.
Speaker 4 (05:10):
Radio, the UK Defense Secretary says talks with the European
Union about a common defense pactor at the hardest stage.
Britain has been putting to join a one hundred and
fifty billion euro scheme for re arming Europe. In an
exclusive interview, John Healy tel Bloomberg, he hopes for a
deal by Monday.
Speaker 10 (05:26):
The security challenges we've faced in Europe require the UK
and the EU to work closer together. We've been willing
and ready to do that, and we've said from the
outset that We're ready to strike an agreement if the
EU will do so too, so I hope we'll see
on Monday what the European Union has now offered as
(05:46):
a security and defense partnership struck with the UK.
Speaker 4 (05:49):
The UK Defense Secretary was speaking at the London Stock
Exchange or He was rallying investment for defense companies. Britain
has committed to increasing defense spending to two and a
half percent of GDP by twenty twenty seven and up
to three percent in the next decade.
Speaker 2 (06:04):
Ukraine's President Zelinsky says that he stands by his plan
to hold direct talks with his Russian counterpart in Turkey
on Thursday. Speaking to reporters in Kief, he said that
he expects strong US and European sanctions on Russia's energy
and banking sectors. If President Putin fails to show up
for the meeting, it's.
Speaker 1 (06:24):
When that Russia is not ready for diplomacy, no time
for playing games on the technical level, and it's win only.
Speaker 9 (06:32):
One thing that we need to be more strong, unite
and tough on them.
Speaker 2 (06:37):
Vladimir Lensky, speaking there as Bloomberg reported that the US
has a sanctions package ready to go should President Trump
require it. Meanwhile, Russia's deputy foreign minister said that the
Kremlin is ready for serious talks in Istanbul, without confirming
whether Putin would attend.
Speaker 4 (06:54):
The UK's markets watchdog plans to relax rules on how
insurers sell policies to large companies. The Financial Conduct Authority
says the market could benefit from a simpler, more straightforward
system that reduces cost and encourages competition. The proposed changes
include reducing review frequencies, giving flexibility and appointing lead insurers,
(07:16):
and eliminating duplicative reporting and training requirements. According to Lloyd's
of London, the Capital's insurance market is the biggest global
hub for commercial and specialty risk sourcing, over ninety one
billion dollars in premiums annually.
Speaker 2 (07:33):
And those are some of our top stories for you
this morning. Let's get to the markets. Agent tech stocks
gaining head of earningstorm alibarbar and Tencent, China's most valuable company.
Chip makers are gaining on plans form Nvidia an AMD
to invest in Saudi Arabia artificial intelligence, and in Vidia's
shares up eleven point eight percent in two sessions to
a ten week high. US benchmarket stock indexes erased their
(07:57):
twenty twenty five losses as of yesterday, but Europeans stop
futures this morning are in the red, down two tenths
of one percent. US everty contracts inching just a little
bit higher, treasuries little changed at four forty seven in
terms of ten year yields, and the dollar. On Monday,
we saw the move in the Bloomberg Dollar Spot Index,
the best single day rally since the election of President
(08:19):
Trump in November, but the dollar broadly week at this
morning down a tenth of one percent. Those are the markets.
Speaker 3 (08:25):
In a moment.
Speaker 4 (08:25):
We'll bring you more on Donald Trump's trip to the
Middle East, plus why Italy's planned to lower London's wealthy
non darms is paying off from Milan.
Speaker 3 (08:32):
But we also usually have a book review for this
sporting I like this look.
Speaker 2 (08:37):
Bloomberg Pursuits covers everything for you, and they've highlighted a
new biography that I just think is fascinating. I've got
to read it. Claire mccardal, the designer who set Women Free.
Elizabeth Evitts Dickinson, has written this biography, and she's written
about the biography for us on Bloomberg, So just to
kind of give us a taser if you don't know
this name in fashion, she is a totally fascinating woman.
(08:59):
She created basically casual women's clothing, the whole of American
women's fashion in the nineteen thirties and forties.
Speaker 4 (09:07):
But the story also was fascinating because of the time
period that it traces back, so from pre war where
Claire McCardell came up with this idea of making fashion
essentially more functional for women, tracing it through the war period,
and how she was able to popularize this as America,
you know, became more wealthy as there was greater, for example, travel,
(09:27):
trying to create clothes that were functional for travel as well.
It's such an interesting doctor position with the conversations we're
having now about how people are dressing in the workplace,
you know, as people came back from the pandemic and
had to get back into struggle back into their suits.
Speaker 3 (09:40):
Not that I'm speaking of press some experience.
Speaker 2 (09:42):
Yes, look, if you are getting ready in your separates,
in your trousers or your skirt, your top and your
jacket to get into the office. Well, of course Claire
mccardal was the person who created that for women have
a read about it. We'll put a link in our
show notes to that story.
Speaker 4 (09:57):
Well, President Trump's trip to the Middle East paved the
way for the AI future for Saudi Arabia and the
unitedarob Emirates with chip deals for US tech companies Nvidia,
AMD and many others joining us. Now for more from
riad is Boomberg TV's Horizons Middle Eastern Africa anchor Jamana Barsaccia.
So we've had day one of the trip already and
a huge neede of artificial intelligence and other deals.
Speaker 1 (10:18):
So many deals announced. I've got to say I was
in the room yesterday when both the Crown Prince muhamm't
Binsentman and President Trump were speaking, and the feeling was
quite electric. Both certainly know how to play to the crowd,
and as we had anticipated, lots of deals, plenty of
agreements and MOUs signed between the two countries. At the
headline figure that the White House released ahead of that
(10:40):
speech was six hundred billion dollars in investment pledges had
been agreed to between the both sides, though later on
the Crown Prince said that they are looking to increase
that number to one trillion dollars. There's some question marks
as to how we're going to get there with the
state of Saudi finances. But in terms of other deals,
three hundred billion dollars worth of commercial agreements were were
(11:01):
well agreed to, essentially at this Saudi US business farm
that was taking place in parallel to President Trump's meetings yesterday,
and some of them include AI. As you mentioned, a
massive deal between Nvidia AMD and the Saudi AI investment
firm HUMANE which was announced this week, and they're going
to be providing some high end chips to power the
(11:23):
AI centers in the Middle East and within specifically Saudi Arabia.
On this point, but on the back of that, you
did see a big rally and makers on that news.
It came as a bit of a surprise, especially because
it means that the Trump administration is watering down some
of those chip export controls. We also had a massive
defense deal announcement. The White House said it was the
largest in history, one hundred and forty two billion dollars worth,
(11:45):
as Saudi Arabia pledging to buy more arms and weapons
from the US. We had an MoU and the energy space.
We also had an announcement from an aviation leasing company owned
by Discumern Weal Funds. They're looking to buy about thirty
Boeing seven three seven jets, so plenty on the commercial front,
and of course many industry leaders were there as well, including.
Speaker 2 (12:06):
The likes of Elon Musk Gosh, it must have been
fascinating to be in that room and to see it Jumana.
But yes, as you say, disagreement about exactly how much
money this is really going to equate to. There's also
another issue though, that I want to touch on, what
is the view in the Gulf nations amongst all of
those people that perhaps you were talking to when it
comes to the gift of a Katari luxury jet to
(12:27):
serve as a new presidential plane.
Speaker 1 (12:29):
Now, I will tell you almost everyone I've spoken to
is slightly frustrated that this news came out because it
took a lot of attention away from some of the
other big deals that they were planning on announcing this week.
I think there's been a lot of controversy about the
story that came out over the weekend. It raises a
lot of legal and ethical questions as to whether or
(12:50):
not the US president can actually accept a gift of
this monetary value from a foreign government, and technically under
the constitution they're not allowed to accept a gift without
congressional approval, so definitely raises some legal questions. President Trump
has confirmed that the Kataris have made this jet as
a gift offer, but also as one of a temporary nature.
(13:12):
The Kataris have said that it's still in discussion phase
and if they were to offer it, it would just
be a loan as opposed to an outright gift. And
then the Trump administration has said that ultimately it would
end up being a part of the Presidential Library or
gifted to the Defense Ministry. So still all of that
is going on in the background. Of course, President Trump
will be making his way to Doha later this afternoon
(13:34):
and over there expect more deals as well, and perhaps
a little bit more focused as well on the regional
security front, because today in Riots he's going to be
presiding over a GCC leader's summit. Unclear exactly which leaders
will be present, but we can expect more headlines today
about the geopolitical focus of the Trump administration as opposed
to pure deals coming out of riod Okay.
Speaker 4 (13:56):
Jimini Versacchi House of Boomberg TV's Horizons Middle Eastern Africa.
Speaker 3 (14:00):
Thank you for joining us from read now.
Speaker 2 (14:02):
It's only been six weeks since the UK's non dom
tax regime ended. It gave wealthy individuals favorable tax treatment
for overseas earnings. Now Italy is proving an early winner
in the race to attract all those wealthy investors from
the UK, and Bloomberg's Ultra a Wealth reporter Benz Supers
joins us now to discuss this. You've been reporting on
(14:22):
this Good Morning, Ben. The Italians have a name for
the plan. I'm not going to attempt it because of
my Italian's rubbish and what are they offering people who
move there?
Speaker 3 (14:30):
I'll haven we go, Caroline.
Speaker 11 (14:32):
It's Fort Londra, which translates into English as Empty London.
Speaker 3 (14:36):
That's I guess.
Speaker 11 (14:37):
It's not the official name, but it's certainly known in
private wealth circles there, and crucially it's actually almost a
copy and paste of what Britain offered to Italy has
offered this. It's not brand new, they've offered it since
twenty seventeen, but at the time it was very much
sort of a deliberate attempt to copy what Britain has
offered for more than two centuries, which is tax breaks
(15:00):
on local earnings and income, tax breaks on overseas earning
and income. And now that's really attractive if you're a
global elite earning millions and millions of whatever currents you're
earning from a global portfolio, and you can be based
in an attractive jurisdiction. So that's the irony here that
Italy is actually attracting a lot of individuals based on
(15:22):
copying very much what Britain has offered, and England and
Britain getting rid of it last month has turbo charged
that program for Milan and Italy more broadly.
Speaker 4 (15:33):
So how well is this working? Who's moving to Milan, Stephen?
Speaker 11 (15:37):
We've got everyone from former CEOs of EMI Music to
billionaire entrepreneurs like the likes of v Nasev Sawiris, Egypt's
richest person, a co owner of the Premier League football
team aston Villa, and in between that there are members
of dynastic fortunes moving as well. So what we're seeing
here is a whole spe spectrum of what we would
(15:57):
call London's billionaire economy. Me relocating upping sticks from London
typically to Milan typically, and you can imagine of course
that they're also bringing with them their families. These are
all individuals in their typically in their fifties sixties, they're
at that stage of life when they've got kids normally,
and you can imagine that sort of the ripple effects
(16:18):
of this are going to spread across the UK, the
fact that they're not here anymore.
Speaker 2 (16:22):
Yes, so is Milan booming? Then what does it mean
for the Italian economy? Maybe overall? It's probably it's not
just Milan, as you say, maybe Rome too, But what
does it mean for Italy overalls?
Speaker 11 (16:32):
What's really interesting here is that it's not just the
individuals now moving on the back of that. We're seeing there,
for example, private members clubs opening up in Milan. We're
seeing luxury hotels thinking oh, you know what, maybe we
should boost our presence there as well. And some of
the top city of London law firms like Charles Russell Speechley,
as we report today in our piece Thereso, they've also
recently opened up offices there in Milan. So what we're
(16:55):
seeing here is the whole ecosystem that London has curated
really carefully. I would say, certainly, over the last century
we've created that ecosystem, the private wealth ecosystem across Mayfair, Chelsea, Knightsbridge,
you name it, and now that whole space is seeing
a similar opportunity in Milan. It will be interesting to
(17:15):
see how the local population increasingly understands and responds to this.
Is it going to increase local housing prices? For example,
as the housing market turns red hot that's often been
a criticism in London, and non dorms have pushed up
housing prices. So I think in some ways this is
really good for Milan. But it'll be very interesting to
see how this develops as an increasing number of typically
(17:40):
previously UK residents end up living in Milano.
Speaker 4 (17:44):
Yeah, perhaps a boom also for Italian lessons for a
lot of these people as well. I mean, where is
Milan competing with ben You've reported on this story extensively.
Where else are they choosing when it comes to locations
outside the UK?
Speaker 11 (17:57):
Yeah, it all depends on the individual. But yeah, you're right, Stephen.
There are some other sort of European wealth hubs within Europe.
Speaker 3 (18:05):
We've got Greece.
Speaker 11 (18:05):
They've actually they've actually taken a similar route to Italy
and created a similar regime to what the UK has
offered for the last two centuries, and another fifteen year regime,
another fifty year regime that allows tax breaks on your
overseas earnings and income. But more broadly, we've got we've
got Monaco, that's sort of I would say that the
long the long held tax haven in Europe. That sort
(18:28):
of that's that's always been known as that. But more
broadly as well, you know, going further than Europe, we've
got the Middle East that's really making a concerted effort
to court some of the world's rich. That's Abidabi Dubai.
So that is why I would say other sort of
the main rivals right now. And Switzerland is always sort
of known as Switzerland's always in the pack. It isn't,
(18:48):
it doesn't almost doesn't. It doesn't have to market itself
these days, it's just known as a great global wealththab.
Speaker 4 (18:55):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:01):
Look for us on your podcast feed every morning, on Apple,
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Speaker 4 (19:07):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (19:13):
Our flagship New York station, is also available on your
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I'm Caroline Hepka and.
Speaker 3 (19:22):
I'm Stephen Carroll.
Speaker 4 (19:23):
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 (00:10):
This is the Blueberg DAYBAQ podcast, available every morning on Apple,
Spotify or wherever you listen. It's Wednesday, the fourteenth of
May in London. I'm Caroline Hepki.
Speaker 3 (00:18):
And I'm Stephen Carroll.
Speaker 4 (00:19):
Coming up today, the US prepares to unveil massive AI
chip deals with Gulf State as the Trump administration throws
out Biden era restrictions.
Speaker 2 (00:29):
NATO sketches out a plan to meet President Trump's call
for five percent defense spending as the UK and EU
remain locked in talks over a common Security pact.
Speaker 4 (00:39):
Plus Milan moves Italy's financial capital proves to be an
early winner in the race to attract wealthy investors after
the UK's non domb rollback.
Speaker 2 (00:49):
Let's start with a roundup of our top stories.
Speaker 4 (00:51):
The United States is clearing a path for Saudi Arabia
and the United Arab Emirates to ramp up AI spending
as the US President uses his visit to the region
to forage deeper business ties with the Gulf States. Under
agreements expected to be unveiled in the coming days, the
nations are poised to secure broader access to advanced chips
from Nvidia and AMD, which are considered the gold standard
(01:14):
for running AI models. Bloomberg's executive editor for Global Tech,
Peter Alstrom, says the deals should not be understated.
Speaker 3 (01:22):
This is a very big deal.
Speaker 5 (01:23):
I mean, at a high level, it's a sea change
really in US policy towards some of these countries and
their access to American technologies, including AI. The Biden administration
had implemented a series of curbs on what foreign countries
could buy, especially AI chips. The most advanced ones are
made by Invidio, of course, and the Biden administration had
(01:44):
a very complex approach a framework that they passed the
last week in office where they under this rule called
the AI diffusion Rule, there are three tiers of different
countries who get different access to different levels of chips
under that framework.
Speaker 6 (01:57):
The Trump administration has now just thrown that out else
Fro'm referring there to the Trump Administration's plan to overhaul
regulations on the global export of semiconductors used in artificial intelligence.
Speaker 4 (02:08):
The move would end the Biden era approach, which had
drawn strenuous objections from US allies and companies, including Nvidia
and Oracle.
Speaker 2 (02:17):
In read Saudi Arabia's capital. President Trump was joined by
Crown Prince Mohammed bin Salman in hailing closer commercial relations.
The two touted plans for one trillion dollars in commercial deals.
The conference signage listed deals totaling just over three hundred
billion dollars. Earlier on Tuesday, the White House has said
(02:37):
the figure was six hundred billion dollars. Now, the one
trillion dollar figure roughly matches Saudi Arabia's entire gross domestic product.
Bloomberg's Nick Wadhams explains the details of these agreements will
be important.
Speaker 7 (02:51):
The question here is really trying to figure out how
much of these commitments are just on paper and how
much of them are actually going to go through. That
big top line number of six hundred billion dollars that
fits with what Saudi Arabia had said it wanted to
do over the next four years and enhance trade and
investment with the US.
Speaker 2 (03:10):
Blueberg's Nick Wadams in Washington, the White House says the
deals aimed to boost US industries in energy, defense, and tech,
as well as to provide access to key global resources.
Without giving full details.
Speaker 4 (03:24):
The US President says a luxury jet offered by the
Katari government will be used as a temporary air Force one,
indicating he plans to accept the gift despite the legal
and ethical concerns. On social media, Donald Trump wrote that
only a fool would not accept the aircraft, as he
criticized Boeing's delays in delivering new jets for government use.
(03:44):
Speaking in the US Senate, Democrat minority leader Chuck Schumer
questioned the terms of the deal.
Speaker 8 (03:49):
What security modifications would be needed to ensure a foreign
sourced air Force one is safe to use? If this
is as president promise a free jet, will the guitaries
pay for those highly sensitive installations or will American taxpayers
cover the cost?
Speaker 4 (04:09):
Chuck Schimmer, speaking as The move has also sparked backlash
among some of the president's supporters. Commentator Ben Shapiro asked
how Trump photers would react if a Democrat had done this,
while far right activist Laura Lumer posted on x that
the gift would be a stain on the Trump administration.
Speaker 2 (04:24):
NATO allies are in talks over how to boost defense
spending in a way that might answer calls from US
President Donald Trump. Bloomberg has learned that military negotiators are
discussing how countries might reach a target of five percent
spending five percent of GDP on defense in the long term,
bloombergs James Wilcock has more.
Speaker 9 (04:44):
One in four NATO allies still don't spend two percent
of their GDP on defense, so setting a target of
five percent would be a major jump. But countries want
to give President Trump a win at a major NATO
summit this June to keep the US committed to the
military alliance. That these talks now are centered on how
countries will afford it, what counts as defense spending, and
(05:06):
how that target might be enforced. In London, James Wilcock Bloomberg.
Speaker 4 (05:10):
Radio, the UK Defense Secretary says talks with the European
Union about a common defense pactor at the hardest stage.
Britain has been putting to join a one hundred and
fifty billion euro scheme for re arming Europe. In an
exclusive interview, John Healy tel Bloomberg, he hopes for a
deal by Monday.
Speaker 10 (05:26):
The security challenges we've faced in Europe require the UK
and the EU to work closer together. We've been willing
and ready to do that, and we've said from the
outset that We're ready to strike an agreement if the
EU will do so too, so I hope we'll see
on Monday what the European Union has now offered as
(05:46):
a security and defense partnership struck with the UK.
Speaker 4 (05:49):
The UK Defense Secretary was speaking at the London Stock
Exchange or He was rallying investment for defense companies. Britain
has committed to increasing defense spending to two and a
half percent of GDP by twenty twenty seven and up
to three percent in the next decade.
Speaker 2 (06:04):
Ukraine's President Zelinsky says that he stands by his plan
to hold direct talks with his Russian counterpart in Turkey
on Thursday. Speaking to reporters in Kief, he said that
he expects strong US and European sanctions on Russia's energy
and banking sectors. If President Putin fails to show up
for the meeting, it's.
Speaker 1 (06:24):
When that Russia is not ready for diplomacy, no time
for playing games on the technical level, and it's win only.
Speaker 9 (06:32):
One thing that we need to be more strong, unite
and tough on them.
Speaker 2 (06:37):
Vladimir Lensky, speaking there as Bloomberg reported that the US
has a sanctions package ready to go should President Trump
require it. Meanwhile, Russia's deputy foreign minister said that the
Kremlin is ready for serious talks in Istanbul, without confirming
whether Putin would attend.
Speaker 4 (06:54):
The UK's markets watchdog plans to relax rules on how
insurers sell policies to large companies. The Financial Conduct Authority
says the market could benefit from a simpler, more straightforward
system that reduces cost and encourages competition. The proposed changes
include reducing review frequencies, giving flexibility and appointing lead insurers,
(07:16):
and eliminating duplicative reporting and training requirements. According to Lloyd's
of London, the Capital's insurance market is the biggest global
hub for commercial and specialty risk sourcing, over ninety one
billion dollars in premiums annually.
Speaker 2 (07:33):
And those are some of our top stories for you
this morning. Let's get to the markets. Agent tech stocks
gaining head of earningstorm alibarbar and Tencent, China's most valuable company.
Chip makers are gaining on plans form Nvidia an AMD
to invest in Saudi Arabia artificial intelligence, and in Vidia's
shares up eleven point eight percent in two sessions to
a ten week high. US benchmarket stock indexes erased their
(07:57):
twenty twenty five losses as of yesterday, but Europeans stop
futures this morning are in the red, down two tenths
of one percent. US everty contracts inching just a little
bit higher, treasuries little changed at four forty seven in
terms of ten year yields, and the dollar. On Monday,
we saw the move in the Bloomberg Dollar Spot Index,
the best single day rally since the election of President
(08:19):
Trump in November, but the dollar broadly week at this
morning down a tenth of one percent. Those are the markets.
Speaker 3 (08:25):
In a moment.
Speaker 4 (08:25):
We'll bring you more on Donald Trump's trip to the
Middle East, plus why Italy's planned to lower London's wealthy
non darms is paying off from Milan.
Speaker 3 (08:32):
But we also usually have a book review for this
sporting I like this look.
Speaker 2 (08:37):
Bloomberg Pursuits covers everything for you, and they've highlighted a
new biography that I just think is fascinating. I've got
to read it. Claire mccardal, the designer who set Women Free.
Elizabeth Evitts Dickinson, has written this biography, and she's written
about the biography for us on Bloomberg, So just to
kind of give us a taser if you don't know
this name in fashion, she is a totally fascinating woman.
(08:59):
She created basically casual women's clothing, the whole of American
women's fashion in the nineteen thirties and forties.
Speaker 4 (09:07):
But the story also was fascinating because of the time
period that it traces back, so from pre war where
Claire McCardell came up with this idea of making fashion
essentially more functional for women, tracing it through the war period,
and how she was able to popularize this as America,
you know, became more wealthy as there was greater, for example, travel,
(09:27):
trying to create clothes that were functional for travel as well.
It's such an interesting doctor position with the conversations we're
having now about how people are dressing in the workplace,
you know, as people came back from the pandemic and
had to get back into struggle back into their suits.
Speaker 3 (09:40):
Not that I'm speaking of press some experience.
Speaker 2 (09:42):
Yes, look, if you are getting ready in your separates,
in your trousers or your skirt, your top and your
jacket to get into the office. Well, of course Claire
mccardal was the person who created that for women have
a read about it. We'll put a link in our
show notes to that story.
Speaker 4 (09:57):
Well, President Trump's trip to the Middle East paved the
way for the AI future for Saudi Arabia and the
unitedarob Emirates with chip deals for US tech companies Nvidia,
AMD and many others joining us. Now for more from
riad is Boomberg TV's Horizons Middle Eastern Africa anchor Jamana Barsaccia.
So we've had day one of the trip already and
a huge neede of artificial intelligence and other deals.
Speaker 1 (10:18):
So many deals announced. I've got to say I was
in the room yesterday when both the Crown Prince muhamm't
Binsentman and President Trump were speaking, and the feeling was
quite electric. Both certainly know how to play to the crowd,
and as we had anticipated, lots of deals, plenty of
agreements and MOUs signed between the two countries. At the
headline figure that the White House released ahead of that
(10:40):
speech was six hundred billion dollars in investment pledges had
been agreed to between the both sides, though later on
the Crown Prince said that they are looking to increase
that number to one trillion dollars. There's some question marks
as to how we're going to get there with the
state of Saudi finances. But in terms of other deals,
three hundred billion dollars worth of commercial agreements were were
(11:01):
well agreed to, essentially at this Saudi US business farm
that was taking place in parallel to President Trump's meetings yesterday,
and some of them include AI. As you mentioned, a
massive deal between Nvidia AMD and the Saudi AI investment
firm HUMANE which was announced this week, and they're going
to be providing some high end chips to power the
(11:23):
AI centers in the Middle East and within specifically Saudi Arabia.
On this point, but on the back of that, you
did see a big rally and makers on that news.
It came as a bit of a surprise, especially because
it means that the Trump administration is watering down some
of those chip export controls. We also had a massive
defense deal announcement. The White House said it was the
largest in history, one hundred and forty two billion dollars worth,
(11:45):
as Saudi Arabia pledging to buy more arms and weapons
from the US. We had an MoU and the energy space.
We also had an announcement from an aviation leasing company owned
by Discumern Weal Funds. They're looking to buy about thirty
Boeing seven three seven jets, so plenty on the commercial front,
and of course many industry leaders were there as well, including.
Speaker 2 (12:06):
The likes of Elon Musk Gosh, it must have been
fascinating to be in that room and to see it Jumana.
But yes, as you say, disagreement about exactly how much
money this is really going to equate to. There's also
another issue though, that I want to touch on, what
is the view in the Gulf nations amongst all of
those people that perhaps you were talking to when it
comes to the gift of a Katari luxury jet to
(12:27):
serve as a new presidential plane.
Speaker 1 (12:29):
Now, I will tell you almost everyone I've spoken to
is slightly frustrated that this news came out because it
took a lot of attention away from some of the
other big deals that they were planning on announcing this week.
I think there's been a lot of controversy about the
story that came out over the weekend. It raises a
lot of legal and ethical questions as to whether or
(12:50):
not the US president can actually accept a gift of
this monetary value from a foreign government, and technically under
the constitution they're not allowed to accept a gift without
congressional approval, so definitely raises some legal questions. President Trump
has confirmed that the Kataris have made this jet as
a gift offer, but also as one of a temporary nature.
(13:12):
The Kataris have said that it's still in discussion phase
and if they were to offer it, it would just
be a loan as opposed to an outright gift. And
then the Trump administration has said that ultimately it would
end up being a part of the Presidential Library or
gifted to the Defense Ministry. So still all of that
is going on in the background. Of course, President Trump
will be making his way to Doha later this afternoon
(13:34):
and over there expect more deals as well, and perhaps
a little bit more focused as well on the regional
security front, because today in Riots he's going to be
presiding over a GCC leader's summit. Unclear exactly which leaders
will be present, but we can expect more headlines today
about the geopolitical focus of the Trump administration as opposed
to pure deals coming out of riod Okay.
Speaker 4 (13:56):
Jimini Versacchi House of Boomberg TV's Horizons Middle Eastern Africa.
Speaker 3 (14:00):
Thank you for joining us from read now.
Speaker 2 (14:02):
It's only been six weeks since the UK's non dom
tax regime ended. It gave wealthy individuals favorable tax treatment
for overseas earnings. Now Italy is proving an early winner
in the race to attract all those wealthy investors from
the UK, and Bloomberg's Ultra a Wealth reporter Benz Supers
joins us now to discuss this. You've been reporting on
(14:22):
this Good Morning, Ben. The Italians have a name for
the plan. I'm not going to attempt it because of
my Italian's rubbish and what are they offering people who
move there?
Speaker 3 (14:30):
I'll haven we go, Caroline.
Speaker 11 (14:32):
It's Fort Londra, which translates into English as Empty London.
Speaker 3 (14:36):
That's I guess.
Speaker 11 (14:37):
It's not the official name, but it's certainly known in
private wealth circles there, and crucially it's actually almost a
copy and paste of what Britain offered to Italy has
offered this. It's not brand new, they've offered it since
twenty seventeen, but at the time it was very much
sort of a deliberate attempt to copy what Britain has
offered for more than two centuries, which is tax breaks
(15:00):
on local earnings and income, tax breaks on overseas earning
and income. And now that's really attractive if you're a
global elite earning millions and millions of whatever currents you're
earning from a global portfolio, and you can be based
in an attractive jurisdiction. So that's the irony here that
Italy is actually attracting a lot of individuals based on
(15:22):
copying very much what Britain has offered, and England and
Britain getting rid of it last month has turbo charged
that program for Milan and Italy more broadly.
Speaker 4 (15:33):
So how well is this working? Who's moving to Milan, Stephen?
Speaker 11 (15:37):
We've got everyone from former CEOs of EMI Music to
billionaire entrepreneurs like the likes of v Nasev Sawiris, Egypt's
richest person, a co owner of the Premier League football
team aston Villa, and in between that there are members
of dynastic fortunes moving as well. So what we're seeing
here is a whole spe spectrum of what we would
(15:57):
call London's billionaire economy. Me relocating upping sticks from London
typically to Milan typically, and you can imagine of course
that they're also bringing with them their families. These are
all individuals in their typically in their fifties sixties, they're
at that stage of life when they've got kids normally,
and you can imagine that sort of the ripple effects
(16:18):
of this are going to spread across the UK, the
fact that they're not here anymore.
Speaker 2 (16:22):
Yes, so is Milan booming? Then what does it mean
for the Italian economy? Maybe overall? It's probably it's not
just Milan, as you say, maybe Rome too, But what
does it mean for Italy overalls?
Speaker 11 (16:32):
What's really interesting here is that it's not just the
individuals now moving on the back of that. We're seeing there,
for example, private members clubs opening up in Milan. We're
seeing luxury hotels thinking oh, you know what, maybe we
should boost our presence there as well. And some of
the top city of London law firms like Charles Russell Speechley,
as we report today in our piece Thereso, they've also
recently opened up offices there in Milan. So what we're
(16:55):
seeing here is the whole ecosystem that London has curated
really carefully. I would say, certainly, over the last century
we've created that ecosystem, the private wealth ecosystem across Mayfair, Chelsea, Knightsbridge,
you name it, and now that whole space is seeing
a similar opportunity in Milan. It will be interesting to
(17:15):
see how the local population increasingly understands and responds to this.
Is it going to increase local housing prices? For example,
as the housing market turns red hot that's often been
a criticism in London, and non dorms have pushed up
housing prices. So I think in some ways this is
really good for Milan. But it'll be very interesting to
see how this develops as an increasing number of typically
(17:40):
previously UK residents end up living in Milano.
Speaker 4 (17:44):
Yeah, perhaps a boom also for Italian lessons for a
lot of these people as well. I mean, where is
Milan competing with ben You've reported on this story extensively.
Where else are they choosing when it comes to locations
outside the UK?
Speaker 11 (17:57):
Yeah, it all depends on the individual. But yeah, you're right, Stephen.
There are some other sort of European wealth hubs within Europe.
Speaker 3 (18:05):
We've got Greece.
Speaker 11 (18:05):
They've actually they've actually taken a similar route to Italy
and created a similar regime to what the UK has
offered for the last two centuries, and another fifteen year regime,
another fifty year regime that allows tax breaks on your
overseas earnings and income. But more broadly, we've got we've
got Monaco, that's sort of I would say that the
long the long held tax haven in Europe. That sort
(18:28):
of that's that's always been known as that. But more
broadly as well, you know, going further than Europe, we've
got the Middle East that's really making a concerted effort
to court some of the world's rich. That's Abidabi Dubai.
So that is why I would say other sort of
the main rivals right now. And Switzerland is always sort
of known as Switzerland's always in the pack. It isn't,
(18:48):
it doesn't almost doesn't. It doesn't have to market itself
these days, it's just known as a great global wealththab.
Speaker 4 (18:55):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:01):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 4 (19:07):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (19:13):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 3 (19:22):
I'm Stephen Carroll.
Speaker 4 (19:23):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
Break Europe
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