Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg Day Bake You podcast. Good morning,
It's Thursday, the eleventh of September. I'm Caroline hepkea in
London and.
Speaker 3 (00:16):
I'm Stephen Caroline Brussels. Coming up today. Police in Utah
are searching for the killer of Charlie Kirk, a conservative
activist and close ally of US President Donald Trump.
Speaker 2 (00:26):
I Think the World of View, Bloomberg obtains revealing and
embarrassing emails between Britain's ambassador to the US, Peter Mandelson
and Jeffrey Epstein.
Speaker 3 (00:36):
Plus seeking supporters. Poland calls on NATO allies to bolster
its air defenses after Russian drones were shot down over
its territory.
Speaker 2 (00:45):
Let's start with a roundup of our top stories. A
search is underway in the United States for the killer
of conservative activist Charlie Kirk, who was shot dead at
a university in Utah. Kirk, a close ally of the
US President, was speaking at an outdoor event when police
say a single shot was fired from a nearby building.
Donald Trump reacted to the killing on social media.
Speaker 4 (01:07):
For years, those on the radical left have compared wonderful
Americans like Charlie to Nazis and the world's worst mass
murderers and criminals. This kind of rhetoric is directly responsible
for the terrorism that we're seeing in our country today,
and it must stop right now.
Speaker 2 (01:28):
US President Donald Trump. There Kirk was one of America's
most prominent conservative figures, leading the organization Turning Point to USA.
His popularity had flourished using a brash approach to politics
and as an online champion of Trump and his MAGA movement.
The shooting is the latest, though in a spate of
US political violence. Donald Trump faced two assassination attempts on
(01:51):
the campaign trail, and in June, a gunman killed Minnesota
Legislator Melissa Hortman and her husband at their home.
Speaker 3 (02:00):
News has obtained more than one hundred previously unreported emails
between Jeffrey Epstein and Peter Mandelsson between two thousand and
five and twenty ten. The interactions between the UK's current
ambassador to the US and the late disgraced financier cast
new light on their relationship, showing that it was deeper
than previously known. Bloomberg's Chris pet Has more.
Speaker 5 (02:20):
The day before Jeffrey Epstein reported to a Florida jail
in June two thousand and eight to begin serving time
for soliciting sex from a minor. He received an outraged
message from a friend, anguished at the injustice of it all.
I think the world of view and I feel hopeless
and furious about what has happened, Peter Mandelson wrote in
an email obtained by Bloomberg News. I still can barely
(02:43):
understand it. It just could not happen in Britain. At
the time, Mandelsson was European Commissioner for Trade. Today he
is the UK's ambassador in Washington. The new revelations come
as Mandelsson already finds himself at the center of a
furora over his links to the serial sex abuser. After
the publication this week of a two thousand and three
(03:05):
birthday book in which he penned a ten page tribute
calling Epstein his best pal, Bloomberg sent Mandelson a detailed
letter outlining the emails on Monday this week. Mandelson acknowledged
receipt of Bloombo's questions, but has not responded to them. However,
in an interview with the UK newspaper The Sun on
Wednesday morning, he expressed remorse at his relationship with Epstein.
Speaker 6 (03:30):
I regret very much. Indeed, I felt it like a
like an albatross around my neck. Since his death in
two thousand and eighteen or nineteen when it was I
feel a tremendous sense of regret, not only that I
met him in the first place, but I continued the association.
Speaker 5 (03:53):
Despite those comments on the Harry Cole Saves the West podcast,
the UK's Prime Minister Keir Starmer now faces growing calls
to sack Mandelson as ambassador to the US. Conservative opposition
leader Kemmy Baiden Not called the situation a disgrace in London.
Chris Pitt Bloomberg Radio.
Speaker 2 (04:12):
In other news, Bloomberg understands Poland has asked NATO allies
for more air defense systems after shooting down Russian drones
that crossed its border yesterday. WARSAW has invoked Article four
of the alliance's treaty, triggering consultations that could lead to
coordinated action. Polish Foreign Minister Vardislaw Sikowski says they need
(04:34):
patriot missiles and new technology to protect their skies.
Speaker 1 (04:38):
We need to.
Speaker 7 (04:40):
Create what ursula forman lane called today in the European
Parliament at her annual State of the Union address a
drone war. This is a threat not only to Poland,
This new technology of the mass use of drones is
a threat to all of the EU and nature and
mini to.
Speaker 8 (05:00):
Face it together.
Speaker 2 (05:01):
The Polish Foreign Minnesota was speaking as the country's Prime Minister,
Donald Tusk said on social media that Poland has received
proposals of concrete support from allies. Polish and Dutch jets
were scrambled in the early hours to shoot down Russian
drones yesterday, nineteen A space violations were registered.
Speaker 3 (05:19):
Mexico was planning to impose tariffs of up to fifty
percent on cars and other products made by China and
several Asian exporters. The levees would apply to thousands of categories,
from auto parts to steal to furniture, and would affect
most effect countries with which Mexico has no trade deal.
The Mexican Economy Minister Marcelo Erbrard described the proposed duties
(05:41):
as part of efforts to protect jobs and industry. It's
a move that would more closely align Mexico with US protectionism.
As President Claudia Scheinbeun prepares for talks over at North
America's free trade deal.
Speaker 2 (05:54):
The CEO of City Group, Jane Fraser, says she's surprised
by the resilience of the US economy mid a constantly
evolving macroeconomic landscape. Speaking to Bloomberg, she said businesses now
have more clarity on tax policy, on tariffs and deregulation.
Speaker 1 (06:10):
One is always surprised by the upside and the resiliency
of the US.
Speaker 8 (06:16):
So let's look at what's gone on.
Speaker 1 (06:18):
Is you've got to look at the collective impact of
the tax policy, what's been happening with tariffs and indeed
the increasing deregulation that we're seeing, and they work together
as a package. I think the most important piece for
a corporate clarity.
Speaker 8 (06:33):
We hate uncertainty, weight clarity.
Speaker 1 (06:37):
And our client base now is really starting to act
with more confidence.
Speaker 2 (06:42):
Jane Fraser's position, though, contasts with that of UBS's CEO
sgy Or Motty. He's told Bloomberg the impact of global
tariffs on the US economy remains unclear.
Speaker 6 (06:53):
The true show on taris will be seen on consumers
in the US.
Speaker 5 (06:57):
We will need to see exactly if there is any inflationary.
Speaker 8 (07:02):
Aspect of tarift and is.
Speaker 3 (07:04):
That still unclear at this point I think is unclear.
Speaker 2 (07:06):
So the comments from two of the world's most prominent
bank CEOs comes ahead of today's USCPI data, which is
expected to show a zero point three percent month or
month price rise. Investors have fully priced in a quarter
point rate cards at the Federal Reserves meeting next week.
Speaker 3 (07:23):
The European Central Bank, meanwhile, has expected to leave interest
rates unchanged that its decision today, as economists believe policymakers
are finished with cuts for now. Bloomberg's Micalcobala reports all.
Speaker 9 (07:34):
Fifty nine economists in Bloomberg survey predict the ECB will
hold its deposit rate at two percent today. They're also
expecting that fresh quarterly projections from the central Bank should
calm fears that inflation could sink below the banks two
percent target for too long. Most ECB officials are said
to be happy with the current monetary policy stands. Prices
(07:56):
are deemed to meet the target, and the Euro Area
economy appears Brazil even as Donald Trump's taris takehold and
France wrestles with political turmoil in Brussels.
Speaker 8 (08:06):
Michael Kobola Bloomberg Radio.
Speaker 2 (08:09):
Those are top storys for you this morning. Looking at
the market, so eupins dogs are up about a quarter
of one percent, fifty one hundred up by half of
one percent, and still futures for the US market open
s and P five hundred futures are barely about a
tenth of one percent. So it does seem that markets
are holding their breath awaiting the USCPI data.
Speaker 8 (08:28):
Also the ECB decision.
Speaker 2 (08:30):
I mean, maybe not this month, the most important month
perhaps December, when we're also expecting we are expecting a
rate cart markets, that is from the ECB. In terms
of the euro, we trade at one sixteen ninety one,
so slightly weaker for the euro against the stronger dollar.
Gold is down three tens. Oil prices are steady, and
in the bond markets, ten year US treasury yields trading
(08:52):
a four.
Speaker 8 (08:52):
Spot zero five.
Speaker 2 (08:53):
Germany yields had two sixty six, up about a basis point.
Speaker 3 (08:56):
Stephen the Karlender the key market story of course, that
dry things yesterday, and I'm watching shares take higher and
pre market trading on Wall Street against today is oracle.
So the software companies results are not beat forecast. Push
shares thirty six percent hire yesterday. They're up about another
one point seven percent in pre market today. So yesterday
we saw eighty nine billion dollars being added to the
fortune of co founder and chairman Larry Allison, the biggest
(09:19):
ever one day increase records on Bloomberg's Billionaires Index. Push
Larry Elson, pastyln Mosque on the index as well, made
in the world's richest person for a short time anyway,
just a casual three hundred and eighty three billion dollars
now that Larry Allison is worth.
Speaker 2 (09:33):
Yeah, absolutely what you can read more about that on
the terminal and also really about what it means for valuations.
Bloomberg's Shirley Ren writing about this what is fair value
for a tech company? Now? She says that the question's
no longer got really good answers because os ficial intelligence
has upended so much. I mean, that's the story you're
(09:54):
always on the watch for, how artificial intelligence is rapidly
changing business and markets.
Speaker 3 (10:00):
Okay, Well, in a moment, we're going to bring you
more on our exclusive reporting regarding the emails between Peter Mandelson.
Speaker 8 (10:05):
And Jeffrey Epstein.
Speaker 3 (10:07):
Plus we'll be discussing the issues of European Security. Poland
now convening a meeting of the UN Security Council to
address the Russian encursion of drones into its territory yesterday.
But I want to turn back to our top story
this morning, first and the shooting of American political activist
Charlie Kirk in Utah. Our reporter Tiwa Adebayo has been
following this story for US this morning. Tiwa, what do
(10:29):
we know now about what happened?
Speaker 10 (10:31):
Kirk was at Utah Valley University as part of his
political advocacy group Turning Point in Usay's American comeback tours,
it's been dubbed, and he was taking part in an
event entitled Proved Me Wrong, where the audience attempts to
sort of stump the pundit. It's something he's widely known
for online. And at that event where the shooting took place,
(10:52):
there was more than three thousand people present, according to
the university police chief.
Speaker 8 (10:56):
They also had put on security.
Speaker 10 (10:58):
There were six local police officers alongside Kirk's own security detail.
But just twenty minutes after that event started, authorities say
a single shot was fired at Kirk from a building
about two hundred yards away. He had actually just begun
answering a question on the number of mass shooters in
America over the last decade, and after the shooting, he
(11:19):
was driven to a local hospital where he later died
according to police. So far we know that CCTV from
the event does show a person dressed in dark clothing,
which is believed to be the suspect, and the FBI
director Cashpitel said on social media that a person of
interest was taken into custody and then later released, so
(11:41):
that investigation is still underway in Utah.
Speaker 2 (11:44):
Tell us about Charlie Kirk and why he was so
influential and why he might have been targeted well.
Speaker 8 (11:52):
Charlie Kirk was perhaps best known for.
Speaker 10 (11:54):
His work as executive director of Turning Pount USA. He
founded that group in twenty twelve and it was funded
by powerful conservatives. But really the hallmark of his work
was youth engagement and that took him to university campuses
around the world. We mentioned earlier that trademark proved me
wrong event Those debates often went viral on social media
(12:18):
and really were a big part of his notoriety and fame.
Just in May this year, he took part in a
particularly important debates in the University of Cambridge's Union Society,
which amassed millions of views on YouTube. He was known
at times for controversial politics and statements, including criticism of
(12:40):
Martin Luther King and other heavily questioned claims, but his
work in politics started well before Turning Points Foundation. He
began the advocacy and the involvement in politics really in
high school. Notably, he wrote a now famous essay for
Breitbart News about liberal bias and economic textbooks, and that
(13:00):
in him a lot of media attention. He was a
regular on channels like Fox Business as well as taking
part in speaking engagements around the country. But that theme
of what he really regarded as exposing and correcting liberal
biases continued throughout his career. Definitely with Turning Point USA
that welcomed conservative students who themselves were eager to prove
(13:24):
these liberal biases on college campuses, the organization grew to
an enormous size. It had more than eight hundred college
chapters according to its website, and actually in twenty twenty four,
their tax filings say they grossed nearly eighty five million
dollars in revenue, but certainly in the last few years.
He was instrumental in the MAGA movement and really a
(13:47):
very valuable ally to President Trump. We saw the extent
of that valued relationship in a really lengthy video posted
by the President eulogizing him on social media. But in
terms of the reasons for perhaps the targeting, we don't
really know anything about the motivations behind this specific crime,
(14:07):
but we've had from the Utah Governor Spencer Cox, who
has described it as a political assassination, and others are
coming to the same conclusion on social media today.
Speaker 3 (14:19):
Okay, t, thank you very much. That's our reporter too,
had a bio there and we heard a little bit
of President Trump's reaction to that killing earlier, and there's
also been condemnation of the killing from the likes of
Joe Biden and Barack Obama as well have offered their
condolences to Charlie Kirk's family. Stay with us. More from
Bloomberg Daybreak Europe coming up after this.
Speaker 8 (14:40):
Now to politics, who are in the UK.
Speaker 2 (14:42):
The emails between Peter Mandelson, the British ambassador to the
United States, and the disgraced financier Jeffrey Epstein that have
been seen by Bloomberg News interactions between twenty five and
twenty twen, which reveal new details about their relationship. Our
fun As reporter Harry Wilson joins us Now for more.
It's interesting because Lord Manderson Peter Manderson a referenced the
(15:05):
fact in recent TV interviews and commentaries that maybe more
might emerge. What do we know about what has been
said in these emails and what it reveals about their relationship?
Speaker 11 (15:16):
Well, the emails are really an extraordinary insights into the
relationship between Peter Manderson and Jeffrey Epstein. I think what
you see is just the depth of their friendship. The
fact that Manderson was so supportive seemingly to Epstein throughout
what is now obviously an incredibly controversial period in time.
And I think it shows that Manderson it wasn't just supportive,
(15:38):
he was an active, I guess, sort of helper in
some ways of Epstein.
Speaker 3 (15:42):
These emails days from fifteen years ago. What do their
publication now mean for Peter Mandelson and his current role.
Speaker 11 (15:49):
It remains to be seen. He's obviously under an enormous
amount of pressure. The Prime Minister kissed Arma is under
enormous pressure to react to this. There's countless cause now
for Manderlsson to be removed from his post. I can't
believe obviously that these emails will do anything to improve
his situation. And I think there must be a clock
ticking now on when the government reacts to it.
Speaker 2 (16:09):
And it's the question around judgment, isn't it. And Mandelson
is obviously a well known political figure in the UK,
instrumental in Tony Blair's government, but now we have a
labor government in power and he is US ambassador all
the more important. I mean he's a hugely well known figure.
What has he said about this? In response?
Speaker 11 (16:32):
He's kept up a line which he's had actually really
for many years, which is that he very much regrets
his association with Epstein. He says, you know, this is
association with him went on far too long. And frankly,
this use of this word association is really quite ridiculous.
I mean, it was a friendship that they had, It
wasn't an association. That's just some mediam mouth words that
he chooses to use. What we're seeing here is I
(16:52):
think a slow I'm picking of a story that he
has told about a friendship which he regrets, but which
we see now was incredibly deep.
Speaker 2 (17:00):
And I suppose what does it mean for government? That's
the other issue. How important is it when Mandelsohn is
meant to be representing the UK in the US. This
is a very difficult position for the Prime Minister, surely
Kistarma to be. So what do you think is going
to be the balance and the discussions that are being
had maybe behind closed doors in government on this point.
Speaker 11 (17:21):
I think this is probably epically bad timing for the government.
Next week we have Trump flying into the UK for
his state visit and to have the ambassador to Washington
embroiled in a Epstein scandal, which is obviously for the
Trump administration a major sort of exposed nerve. So it's
(17:41):
really hard to think of a worse situation for them
at the time, and this must be hugely unwelcome.
Speaker 3 (17:47):
Harry, This series of emails has a lot of prosess
a lot of questions as well, with a lot of
factors unknown in them as well. Where do you see
this story going from here? Are there further questions that
are going to have to be answered about the content
of There.
Speaker 11 (18:00):
Are going to be firm questions. I think it's people
will want to know exactly what level of support was
Mandelson providing to Epstein during his investigation and later incarceration
for procuring sex from a minor. I mean, these were
exceedingly serious charges and to say, now, well he was
lied to and this sort of thing. But he's you know,
he's a grown man, he's an educated man. I mean
(18:22):
he should have known better.
Speaker 8 (18:23):
Harry, thank you so much for being with us.
Speaker 2 (18:25):
The details of this story are in a long read
and I would say to our listeners to have a
look at it. UKM Bassat told Epstein, I think the
World of View emails reveal. So this is a number
of Blimberg reporters, including Harry Wilson, that you just heard
there on these important revelations really around the emails and
the content of the correspondence between Mandelson and Jeffrey Epstein
(18:48):
are dating back to the two thousand. So thanks to
our finance reporter Harry Wilson, what to.
Speaker 3 (18:53):
Worth and he is now. Poland's Foreign ministry says that
UN Security Council will hold a meeting to discuss the
encouragement by Russian Joe into its airspace yesterday. The country's
already saw consultations with NATO allies, which could lead to
a joint response. Bloomberg Opinion columnist Mark Champion joins us.
Now for more, Mark, you've been writing about this drone
encouraging for Bloomberg Opinion. What are the I suppose, key
(19:15):
things that we should be focusing on when thinking about
the significance of.
Speaker 8 (19:18):
This, Yes, well, I think.
Speaker 12 (19:22):
Less perhaps what is done at the UN Security Council,
which will be you know, given that Russia sits there
has a veto, it will be you know, interesting theater.
There will be plenty of fireworks and you know, diplomatically,
you know, there'll be a lot of focus on it.
But ultimately, this was a military operation and despite all
(19:47):
you know Russian not denials but obfiscations, it's clearly a
deliberate attempt from Russia at a time when they are
conducting military exercises in Bulorus right over the border with
Poland to test NATO air defenses. And that is really
where the focus should be. And you know, what we
(20:10):
know so far is that NATA really struggled. These were
very very cheap drones. They're decoy drones as far as
we know, you know, none of them were armed, and
they're made of polystyrene and plywood. They cost about ten
thousand dollars a piece to make from Chinese kits. And
(20:32):
you know what they're getting shot down with by the
F sixteens and F thirty fives that were scrambled. You know,
the air to air missiles that those things use, they
cost anywhere from about four hundred thousand to two million
dollars a piece. And if they you know, apparently the
Poles are also mobilized patriots, those missiles cost about four
million dollars a piece. So they shot down maybe four
(20:55):
of the twenty or so. We don't know all the
details yet, and you know, whether they just couldn't shoot
the rest down or they realized that they were decoys
and that they were wasting huge sums of money bringing
them down, we don't know. But Putin will have learned
a good deal. And the important thing to watch, I think,
is that you know, what does NATO learn, And it's
(21:18):
going to need to learn a lot from the Ukrainians
about how they are dealing with this threat, which is
very difficult for them too. The question is how do
you when a country can throw hundreds or up to a.
Speaker 8 (21:32):
Thousand drones at you in a wave.
Speaker 5 (21:35):
How do you deal with that?
Speaker 2 (21:36):
Okay, alarm bells on the basis of what you say,
must be ringing loudly across Europe. And I just contrast
that with what the first Sea lot here in Britain
said this week about the DSi event. So this major
gathering of the defense industry, basically the arms industry in London,
(21:57):
and he's talking about my mission is to move the
Rule Navy to war fighting readiness over the next four years.
I mean, surely those sorts of statements that we're hearing about,
you know, the length of time, that's the worry. How
is Poland responding then to this? If they weren't able,
as you say, to shoot everything down, what's the Polish response?
Speaker 12 (22:19):
Well, you know, in fairness to the polls, they are
the one native country that has responded, you know, with
urgency to the war in Ukraine. So they have massively
increased their defense spending and now are you know, probably
the second largest European military force after Turkey and Nata,
(22:43):
and so you know they have responded the UK. In
fairness to the UK also, it has a contract that
they're just rolling out as it happens to mass produce
interceptor drones with the Ukrainians.
Speaker 8 (22:59):
These are the.
Speaker 12 (22:59):
Things that you Ranians are turning to, you know, other small,
other cheap drones that are a bit faster than these
gerberas or the Ghiran drones, the shah heads, and they
chase them and fight and shoot them down. The thing
about this is that any solution is produced has to
(23:20):
be dynamic, because as soon as you produce something, the
Russians produce a counter and you then have to upgrade
what you have.
Speaker 8 (23:28):
The Ukrainians are.
Speaker 12 (23:29):
Doing this all the time, every day in the field.
They have direct lines of communication between the front lines
and the people who are making the drones, the counter
drones that ew, the electronic warfare equipment and so on,
always feeding back. And this is the kind of thing
that NATA is going to have to learn to do.
And I think what they will be, you know, are
(23:49):
beginning to understand is the only way that they can
actually prepare a defense for themselves is to get more
involved with the Ukrainians in in how they are manufacturing
what they are manufacturing, which is what the UK has
begun to do, which I think is a good sign.
Speaker 3 (24:08):
We heard Orislov underline yesterday in her Stage of the
Union speech talk about the need for a wall of
drones on the EU's eastern flank. I mean it's something
like that realistic given what you're saying.
Speaker 12 (24:18):
Well, it is. I mean, it's what the Ukrainians are doing.
The Ukrainians are producing millions of drones a year at
this point, and it's what the rest of NATO has to,
you know, think again about doing.
Speaker 8 (24:31):
If you think about what the Cold War looked.
Speaker 12 (24:34):
Like with tens of thousands of battle tanks, you know,
lined up on either side, I think the way we
need to think about this is, you know, these are
in what is a new you know, cold War style
conflict is developing. You know, the drones are the new
(24:54):
battle tanks and we're going to have to mass produce them.
They are the things that are going to protect us
because the warfare now it can be done. It doesn't
have to be conducted on lat end. The Russians have
demonstrated that it's possible to conduct or at a long
range level and it doesn't matter if you're the UK
(25:18):
or if you're Poland, you can be hit.
Speaker 8 (25:20):
Yeah.
Speaker 2 (25:21):
Absolutely, So, you know I' imagining some of those lines
of Jones. As you say, in terms of the US,
surely the US response around NATO, maybe even the US
president's response around this incursion into Poland is actually the
thing that everybody is waiting for him. And there were
some statements out of the US military about NATO, but
(25:45):
is that what people are waiting for.
Speaker 12 (25:47):
Absolutely what Trump does in the next few days is critical.
The initial response that he had on true social is
very worrying. Essentially what he said was, you know, what's
what's this with you know, Poland? Russia sending drones at Poland?
Speaker 8 (26:06):
Here we go.
Speaker 12 (26:07):
It's like, you know, he's a spectator in the stands
of an ice hockey game or something, and that is what,
you know, the rest of NATA will be very concerned about.
It's what Russia and China will be watching for. And
in fact, you know, not so long ago, Sky News
put together a very interesting wargame where in order to test,
(26:30):
you know, what what would happen if Russia was to
attack the UK and the kind of core element in
that wargame it became clear immediately was the first action
of the Prime Minister was to get on the phone
to Washington make sure that Washington took the UK side
and supported it fully. What actually happens in the wargame
(26:51):
is that you know, Washington doesn't. It's kind of a
bit of a spectator and it's just both sidei ism
and that leads to a recognition that the UK really
can't compete with Russia because he doesn't have US support.
This is the sort of thing that all of NATO
will be worrying about.
Speaker 3 (27:10):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (27:16):
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Speaker 8 (27:36):
I'm Caroline Hepka and I'm Stephen.
Speaker 3 (27:38):
Carol. Join us again tomorrow morning for all the news
you need to start your day right here on Bloomberg
day Break Europe.