September 24, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) President Donald Trump said NATO nations should shoot down Russian aircraft that violated their airspace and struck a more sympathetic tone on Ukraine’s chances of winning the war.
(2) Late-night host Jimmy Kimmel took a conciliatory tone in his return to TV Tuesday night, saying “it was never my intention to make light of the death of a young man.”
(3) Super Typhoon Ragasa is set to cross China’s southern coast later Wednesday after lashing Hong Kong with torrential rain and fierce winds, which toppled trees and damaged infrastructure across the city.
(4) The UK is looking to take advantage of the chaos sown by US President Donald Trump’s decision to overhaul his country’s visa program for certain college-educated foreign workers.
(5) Federal Reserve Chair Jerome Powell said the outlooks for the labor market and inflation face risks, reiterating his view that policymakers likely have a difficult road ahead as they weigh further interest-rate cuts.
(6) OpenAI plans to invest roughly $400 billion to develop five new US data center sites in partnership with Oracle Corp. and SoftBank Group Corp., marking the biggest push yet to fulfill an earlier pledge to spend a half-trillion dollars on artificial intelligence infrastructure in the country.
(7) Europe’s asset managers have long agreed they must consolidate to survive. A string of high-profile acquisitions suggests they’re finally willing to do something about it.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:10):
This is the BlueBag Day Baker at podcast. Good morning,
It's Wednesday, the twenty fourth of September. I'm Caroline Hepgar
in London. Coming up today. President Trump says that NATO
allies should shoot down Russian aircraft that enter their territory
as he backs Ukraine to win the war. Jimmy Kimmel
chokes up as he says it was never his intention
(00:31):
to make light of the murder of Charlie Kirk before
calling efforts to take his program off the air on
American plas the trillion dollar race, European money managers moved
to consolidate as they try to head off the growing
threat from Wall Street rivals. Let's start with the roundup
of our top stories. President Donald Trump is sounding a
(00:53):
new note on Ukraine's chances of winning its war against
Russia and saying that NATO itself sho take a tougher line.
He says members of the Alliance should take down Russian
planes that breach their airspace. That was after a series
of jet and drone incursions this month on NATO's eastern
(01:14):
flank which alarmed allies. Here is the exchange with reporters
when President Trump was directly pressed on his stance, Mister Prednay, do.
Speaker 3 (01:25):
You think that NATO countries should shoot down Russian aircraft
if they enter their airspace?
Speaker 2 (01:33):
Donald Trump was speaking alongside Ukraine's Vladim Zelinsky on the
sidelines of the UN General Assembly in New York. In
a subsequent social media post, Trump said he believed that
with EU backing, Ukraine was positioned to reclaim all the
territory taken by Russia since its invasion in twenty twenty two.
(01:53):
Not only to fight back, President Trump wants NATO to
step up and also put more pressure on Russia. Though
Finnish President Alexander Stubb has been speaking to Bloomberg, all.
Speaker 4 (02:07):
The conversations that I've had with my American friends and
also with President Trump lead me to believe that there's
a very strong commitment to nature and the alliance. Remember
that a year ago, if someone would have told me
in the summer, at the seventy fifth Anniversary of Nature
that we will hike up our defense expenditure from JUO
to five percent next summer, I would have said, you'd
probably going to need to go and see a doctor.
Speaker 2 (02:30):
Finished President Alexander stood there speaking to Bloomberg's Tyler Kendall.
The US President meanwhile delivered his first UN speech of
his second term, in which he severely criticized the UN
organization and repeated his call for stronger borders.
Speaker 1 (02:48):
Now.
Speaker 2 (02:49):
The US's late night host Jimmy Kimmel became notably emotional
as his show returned, and he railed against the threat
of censorship. Disney suspended Kimmel's show last week following controversial
remarks that the comedian made about the assassination of Republican
activists Charlie Kirk. At the start of his ABC show,
(03:09):
the comedian thanked both political supporters and opponents who had
backed his freedom to share his views on air, before
then offering this conciliatory message.
Speaker 5 (03:21):
You understand that it was never my intention to make
light of the murder of a young man.
Speaker 3 (03:28):
I don't.
Speaker 5 (03:32):
I don't think there's anything funny about it. I posted
a message on Instagram of the daves killed, sending love
to his family and asking him for compassion, and I
meant it and I still do. Nor was in my
intention to blame any specific group for the actions of
what it was obviously a deeply disturbed individual.
Speaker 2 (03:51):
Kimmel went on to call the push to take his
show off air on American Disney reinstated kim OLL's program
after reaching an agreement with the late night host about
what he would say on air, following a public backlash
out the decision to suspend him. Now, in a social
media post, President Trump floated the prospect of unspecified future
(04:12):
legal challenges against the company's decision to bring back the show,
calling him an arm of the Democratic Party. Now. Another news,
violent wind and torrential rain super typhoon Ragasa has been
pounding Hong Kong and it is expected to hit China's
Guangdong province later today. Ragasa has killed at least fourteen
(04:34):
people in Taiwan and six in the Philippines, and is
the worst cyclone worldwide this year. The storm has led
to thousands of flights being canceled, school classes, train services,
and business activities being suspended across major cities in southern China.
Here in the UK, the government is looking at making
it easier for highly skilled workers to come to Britain
(04:56):
to take advantage of America's visa changes. The Chance of
Rachel Reeves told staff at revolutes new global headquarters that
the UK government is moving quickly to try to grab talent.
Here is Bloomberg's James Walcock with more.
Speaker 6 (05:11):
The UK government wants your tech professionals, bankers and lawyers,
but if you're coming illegally, it wants to discourage you
from coming. The mixed messaging is created by two competing priorities.
The UK government wants economic growth, but it's also terrified
of being seen not to be in control of migration
in London James Wacock, Bloomberg Radio.
Speaker 2 (05:32):
Faircha Jo and Powell says that there is no risk
free path for the US economy. The Central Bank chair
pointed to high inflation and a fragile jobs market as
pain on both sides of the monetary policy problem. Powell
says that economists are also still watching for a tariff
impact your term, risks.
Speaker 7 (05:52):
To inflation are tilted to the upside and risks to
employment are tilted to the downside, a challenging situation. Two
sided risks mean that there is no risk free path.
Speaker 2 (06:04):
Powell's comments are in stark contrast to President Trump's new
appointee to the FED Board, Stephen Myron. Myron says that
the threat to the labor market is the main priority,
and is voting for steep cuts to the interest rate.
The open divide the US Central Bank is driving big
swings in trading in options markets. Traders now expect only
(06:25):
one more twenty five basis point cut this year, and
the so called neutral raids they see as higher than
current market expectations at just below three percent. Open AI
is planning to invest roughly four hundred billion dollars to
develop five new US data centers. The project, in partnership
with Oracle and SoftBank, is the biggest push to fulfill
(06:48):
a pledge to spend a half trillion dollars on AI
infrastructure in America. J Jacobs, head of Equity ETFs at
black Rock, expects even more money to flow in to
the sector.
Speaker 8 (07:01):
Investor enthusiasm is only growing. If you look at one
of our ETFs, BAI. It's an actively managed AIETF. It's
brought in over five billion dollars this year and is
now the largest AIETF in the United States, and a
lot of the exposure that is providing to investors is
around that digital infrastructure layer. The hardware producers in the
semiconductor space, the digital infrastructure owners, some of the data
(07:22):
owners that are becoming really valuable in this explosion of
AI models, and so there's a ton of investor enthusiasm,
and I think there's a lot of expectations that revenues
will match the expenditures, if not exceed them, in the
next several years.
Speaker 2 (07:35):
Now Black Clox J Jacobs there speaking to Bloomberg. According
to the firms, the new locations will be spread across Texas,
New Mexico, and Ohio and eventually have a capacity of
seven gigawatts, which is as much as some cities. Open
AI says that the sites will also create tens of
thousands of additional jobs across the US. So those are
(07:56):
our top stories for you this morning. Looking at the
market stop future for the European market, open are quite weak,
down four tenths of one percent, but we're keeping an
eye on defense stocks, which have seen valleys in Asia
after President Trump's un address yesterday. US STOP futures are
in the green. Looking at the MSCI Asia Pacific Index
that is slightly softer. The dollar is stronger a tenth
(08:17):
of one percent. Oil prices are also higher this morning,
again on the rhetoric around Russia from President Trump, treasuries
holding their gains after your own power warned about those
risks in the labor market and inflation persisting in the US.
So those are the markets. In a moment, we are
going to bring you a bit more then on the
(08:37):
change in tone from President Trump and the United States
on Russia, and also how Europe's fragmented asset managers are
starting to consolidate in the face of big US players.
So we'll get onto that in a moment. But something
else has caught my eye today. How early do you
get up? Do you write lists, you take a walk?
I've been thinking about these habits after reading Bloomberg's CEO
(09:00):
diet Kate Krader, who actually sits only a few desks
away from me. She's been talking to a dozen also
leaders and founders about how they use their time in
the office and outside, and delighted to hear lots of
them get up really early, but many of them also
go to bed and get up at exactly the same time.
And I just thought it was really interesting conversation about productivity.
(09:22):
Glad to hear that actually a lot of these CEOs
do balance, you know, they talk about balance even though
they're high achievers. They balance their needs across the day.
Yakob Arab Anderson, who's the CEO of Carlsberg, calls it
FSN fitness, sleep, nutrition, and lots of others. I mean
one new CEO, Rose Van Geven at the investment company
(09:47):
Findlay Park Partners, says that she's completely ditched social media
platforms because it takes up so much of her time.
But look, I thought it was a very interesting list
on Yeah, I guess how to be one of those
top how to get maybe to be CEO with the
habits daily habits. It's in Bloomberg's CEO Diet, and I'm
going to put a link to it in our show
(10:08):
notes for you to have a read and maybe get
inspired today. Now, President Donald Trump says that NATO countries
should shoot down Russian aircraft that violate their airspace in
and addressed to the UN in which the US President
was more optimistic about Ukraine's ability to regain all of
its territory. Joining me now to discuss is Bloomberg's Brussels
(10:28):
Bureau chief Suzanne Lynch. Good morning, Suzanne. How significant a
shift is this by the US on support for Ukraine
against Russia's putin.
Speaker 3 (10:39):
I mean, I think there was a lot of relief
in New York among European allies about Donald Trump's comments
that really came out during the day. He struck a
very combative tone during his own address to the UN Assembly.
M It was an extremely negative speech where he sailed
allies over issues like migration and over energy. He said,
(11:02):
you know your countries are going to hell. And this
was the tone of his speech to the UN. But
then later when he started having those bilateral meetings with leaders,
when we heard from the President at those press points,
and we definitely saw a different tone in terms of
the specifics of the US policy visa v Russia and Ukraine,
(11:22):
and most importantly there as he said he did say
that he believed that NATO nations should shoot down Russian
aircrafts that violated their airspace. Earlier we'd heard and Marco
Rubio kind of moving away from that one slightly. This
followed comments by the Polish Prime Minister Donald Tusk earlier
in the week when he talked about shooting down Russian
(11:44):
aircraft that came into airspace. But a very significant shift
and tone there by Donald.
Speaker 2 (11:50):
Trump Russia seems to have been testing you also and
NATO with these airspace incursions that we've been talking about
throughout this week, sasan would the aircraft be shot down
in future? And also what is now the US position
on that?
Speaker 3 (12:07):
Yeah, it's an interesting one. Yesterday the NATO had a
meeting of the North Atlantic Council, which is their main
decision body here in Brussels. It had been called by
Estonia because of the incursions into its airspace. But while
that was happening, if you like, we were getting confirmation
from Denmark that Copenhagen Airport had been closed for several
(12:28):
hours because of drone incursions there. So Mark Ruta, the
NATO Secretary General, was asked a specific question, I mean,
what is the position vs. V and NATO and these
drone incursions? Now, he was very careful in his wording.
He said, you know, if this is intentional or not?
He said a few times he said NATO is prepared
(12:48):
to defend every inch of its territory.
Speaker 4 (12:52):
Now.
Speaker 3 (12:53):
He was asked as well about those comments O more
belligerent to be like comments by President or Prime Minister
Donald Tusker in the week, and he was keen to
kind of say there was no daylight between the two saying, Look,
Tusk is saying what I'm saying, if necessary, and NATO
will act, and you know we're not at that point,
but it is ready and that is a decision of
the Supreme Allied Commander. You know, we are ready to
(13:15):
respond if needed. So we got the sense from the
NATO Secretary General that obviously NATO, the Alliance is very
much on alert here. The meeting that was called by Estonia,
and indeed Estonia also spoke of the UN Security Council
on Monday in New York. I mean, this was quite unusual.
There's now a lot of concern about these repeated drone incursions,
(13:38):
particularly in Copenhagen. Just next week, Caroline is going to
be a big meeting of EU leaders and European leaders,
two day meeting in Copenhagen. So the timing of this
incursion that closed the airport is quite interesting.
Speaker 2 (13:52):
Yes, indeed, and there has been a lot going on
at the UN and also on the sidelines. I mean
Trump's speech. You mentioned how sort of aggressive it was,
and how President Trump was touting what he sees as
his big wins, ending war, wasn't doing trade deals and
ending immigration into cutting immigration into America. But that very
(14:15):
harsh criticism of Europe, also of Hamaz, also of the
UN itself. I mean, the United Nations seems to be
dealing with the worst crisis in its history.
Speaker 3 (14:25):
Really, yes, And the United States, which is the biggest
financial contributor by far to the UN, is not on
board with a lot of what the UN is doing.
It's already pulled out of some agencies and it effectively
hasn't paid its bill for the UN since last year.
So I think the UN Deecretary General has admitted that
(14:47):
the organization has a liquidity crisis, it has a crisis
of identity, and it's marking its Asian anniversary this year.
But it is interesting to Donald Trump hit on some
of those points. Even he was even critical of the UK.
Just after his visit. He talked about, you know, the
policy on wind turbine, saying that they're ruining the Scottish
(15:08):
and English countryside. He took us wipe at the London mayor,
said he can. He also talked about climate change, which
was of a big focus for the UN through its
cop system, calling it a con job. So yes, a
very belligerent and kind of isolationist speech by Donald Trump. Now,
(15:31):
I suppose the other way of looking at this is
that he did hold a series of bilateral meetings during
the day with European leaders in particular, also of course
the Argentinian leader as well, But that I suppose to
show that there was still an engagement there. He spent
the day there meeting leaders, having a reception, later having
(15:52):
serious conversations with people like Vladimir Lensky. So for all
the rhetoric brawl, the bluster in his speech, there was
a lot of diplomacy that happened, and the United States
was at the center of that yesterday in the UN.
Speaker 2 (16:05):
Yes, that's very interesting, isn't it. Suzanne, thank you so
much for your time and being with us today. That
is Bloomberg's Brussels bureau chief Suzanne lynch Worth, noting also
there was some pushback from the UK government on that criticism,
both from the Energy Secretary Ed Miliband and also from
the London mayor, Sadiq Khan. Stay with us more from
(16:25):
Bloomberg Day Bake EUOP coming up after this. Europe's money
managers have done a string of high profile deals beginning
to reshape the industry and push back against the large
US firms like black Rock and Vanguard and JP Morgan
as passive investment funds have grown in popularity and Europe's
asset managers are still very fragmented. Bloomberg's asset management reporter
(16:49):
Leo ken Scherper has penned this piece. He joins me, now,
good to see you, Leo. What is the situation facing
Europe's asset managers? And so also I guess that means
what is driving consolidation?
Speaker 9 (17:03):
Good morning, Caroline, thank you, good to see you as well. Yeah,
it's certainly not a new dynamic, but the pressure is
increasing here. First of all, you've got the flight to
passive products. You've had it for over a decade, which
means for the asset managers lower revenue margins and at
the same time you've got rising costs. And for European
(17:23):
asset managers in particular, they are also seeing coming more
under pressure from large US firms who have been winning
market share over the past decade, especially again in passive products.
And in Europe a lot of asset managers are also
controlled by banks and insurers, and these you know, big
firms now wondering you know, actually asset management only makes
(17:44):
up a very small part of our overall bottom line.
Should we double down or should we exit? So European
asset managers overall have have long agreed that they need
to merge in order to survive. And the new development
that we've seen over the last twelve months is that
we're now also seeing action. You know, b MP has
acquired acc Investment Managers that has created a one point
(18:07):
eight trillion dollar asset manager. And you also had Generally
and Natixis agree on a deal that would create Europe's
second biggest asset manager. And of course we have reported
the talks between a Mundi and Alliance Global Investors, with
which are now on hold.
Speaker 2 (18:23):
Okay, so one of the challenges then to get more
of these deals happening. I mean, what's the kind of
pipeline looking like?
Speaker 9 (18:33):
Yeah, exactly. So I've just mentioned the talks between a
Mundi and Alliance and this isn't a very europe specific problem,
but it's always a question about who gets to take control.
You know, We've had a lot of infamous co CEO
structures in corporate history, and that will always be a
curveball to big deals and asset manager and beyond. And
the second, the second curveball is, you know, national politics
(18:57):
definitely gets in the way. There's a fair amount with
doubt now that generally is deal with, that TIXIS will
go ahead, in part because the Italian government isn't too
fond of the prospect that decision makers at Generally, which
is a major buyer of Italian government bonds, will slip
further away from the Italian government's influence. And then another
(19:19):
bit quirk, slightly quirky curveball is that one of the
drivers behind BMP's acquisition of XIM has been this accounting
perk known as the Danish compromise, and that allows banks
to buy asset managers with a preferential capital treatment. Now,
the ECB has since said earlier this year, to many
(19:39):
people's surprise, well actually we don't think it's right that
banks get a better treatment for buying an asset manager.
Let's let's not do that. So that perk is now gone,
and you know that is expected to at least slow
down a bit of the deal making.
Speaker 1 (19:55):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to and beyond.
Speaker 2 (20:01):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (20:07):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:13):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka.
Speaker 1 (20:22):
And I'm Stephen Carol. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Daybreak Europe
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:10):
This is the BlueBag Day Baker at podcast. Good morning,
It's Wednesday, the twenty fourth of September. I'm Caroline Hepgar
in London. Coming up today. President Trump says that NATO
allies should shoot down Russian aircraft that enter their territory
as he backs Ukraine to win the war. Jimmy Kimmel
chokes up as he says it was never his intention
(00:31):
to make light of the murder of Charlie Kirk before
calling efforts to take his program off the air on
American plas the trillion dollar race, European money managers moved
to consolidate as they try to head off the growing
threat from Wall Street rivals. Let's start with the roundup
of our top stories. President Donald Trump is sounding a
(00:53):
new note on Ukraine's chances of winning its war against
Russia and saying that NATO itself sho take a tougher line.
He says members of the Alliance should take down Russian
planes that breach their airspace. That was after a series
of jet and drone incursions this month on NATO's eastern
(01:14):
flank which alarmed allies. Here is the exchange with reporters
when President Trump was directly pressed on his stance, Mister Prednay, do.
Speaker 3 (01:25):
You think that NATO countries should shoot down Russian aircraft
if they enter their airspace?
Speaker 2 (01:33):
Donald Trump was speaking alongside Ukraine's Vladim Zelinsky on the
sidelines of the UN General Assembly in New York. In
a subsequent social media post, Trump said he believed that
with EU backing, Ukraine was positioned to reclaim all the
territory taken by Russia since its invasion in twenty twenty two.
(01:53):
Not only to fight back, President Trump wants NATO to
step up and also put more pressure on Russia. Though
Finnish President Alexander Stubb has been speaking to Bloomberg, all.
Speaker 4 (02:07):
The conversations that I've had with my American friends and
also with President Trump lead me to believe that there's
a very strong commitment to nature and the alliance. Remember
that a year ago, if someone would have told me
in the summer, at the seventy fifth Anniversary of Nature
that we will hike up our defense expenditure from JUO
to five percent next summer, I would have said, you'd
probably going to need to go and see a doctor.
Speaker 2 (02:30):
Finished President Alexander stood there speaking to Bloomberg's Tyler Kendall.
The US President meanwhile delivered his first UN speech of
his second term, in which he severely criticized the UN
organization and repeated his call for stronger borders.
Speaker 1 (02:48):
Now.
Speaker 2 (02:49):
The US's late night host Jimmy Kimmel became notably emotional
as his show returned, and he railed against the threat
of censorship. Disney suspended Kimmel's show last week following controversial
remarks that the comedian made about the assassination of Republican
activists Charlie Kirk. At the start of his ABC show,
(03:09):
the comedian thanked both political supporters and opponents who had
backed his freedom to share his views on air, before
then offering this conciliatory message.
Speaker 5 (03:21):
You understand that it was never my intention to make
light of the murder of a young man.
Speaker 3 (03:28):
I don't.
Speaker 5 (03:32):
I don't think there's anything funny about it. I posted
a message on Instagram of the daves killed, sending love
to his family and asking him for compassion, and I
meant it and I still do. Nor was in my
intention to blame any specific group for the actions of
what it was obviously a deeply disturbed individual.
Speaker 2 (03:51):
Kimmel went on to call the push to take his
show off air on American Disney reinstated kim OLL's program
after reaching an agreement with the late night host about
what he would say on air, following a public backlash
out the decision to suspend him. Now, in a social
media post, President Trump floated the prospect of unspecified future
(04:12):
legal challenges against the company's decision to bring back the show,
calling him an arm of the Democratic Party. Now. Another news,
violent wind and torrential rain super typhoon Ragasa has been
pounding Hong Kong and it is expected to hit China's
Guangdong province later today. Ragasa has killed at least fourteen
(04:34):
people in Taiwan and six in the Philippines, and is
the worst cyclone worldwide this year. The storm has led
to thousands of flights being canceled, school classes, train services,
and business activities being suspended across major cities in southern China.
Here in the UK, the government is looking at making
it easier for highly skilled workers to come to Britain
(04:56):
to take advantage of America's visa changes. The Chance of
Rachel Reeves told staff at revolutes new global headquarters that
the UK government is moving quickly to try to grab talent.
Here is Bloomberg's James Walcock with more.
Speaker 6 (05:11):
The UK government wants your tech professionals, bankers and lawyers,
but if you're coming illegally, it wants to discourage you
from coming. The mixed messaging is created by two competing priorities.
The UK government wants economic growth, but it's also terrified
of being seen not to be in control of migration
in London James Wacock, Bloomberg Radio.
Speaker 2 (05:32):
Faircha Jo and Powell says that there is no risk
free path for the US economy. The Central Bank chair
pointed to high inflation and a fragile jobs market as
pain on both sides of the monetary policy problem. Powell
says that economists are also still watching for a tariff
impact your term, risks.
Speaker 7 (05:52):
To inflation are tilted to the upside and risks to
employment are tilted to the downside, a challenging situation. Two
sided risks mean that there is no risk free path.
Speaker 2 (06:04):
Powell's comments are in stark contrast to President Trump's new
appointee to the FED Board, Stephen Myron. Myron says that
the threat to the labor market is the main priority,
and is voting for steep cuts to the interest rate.
The open divide the US Central Bank is driving big
swings in trading in options markets. Traders now expect only
(06:25):
one more twenty five basis point cut this year, and
the so called neutral raids they see as higher than
current market expectations at just below three percent. Open AI
is planning to invest roughly four hundred billion dollars to
develop five new US data centers. The project, in partnership
with Oracle and SoftBank, is the biggest push to fulfill
(06:48):
a pledge to spend a half trillion dollars on AI
infrastructure in America. J Jacobs, head of Equity ETFs at
black Rock, expects even more money to flow in to
the sector.
Speaker 8 (07:01):
Investor enthusiasm is only growing. If you look at one
of our ETFs, BAI. It's an actively managed AIETF. It's
brought in over five billion dollars this year and is
now the largest AIETF in the United States, and a
lot of the exposure that is providing to investors is
around that digital infrastructure layer. The hardware producers in the
semiconductor space, the digital infrastructure owners, some of the data
(07:22):
owners that are becoming really valuable in this explosion of
AI models, and so there's a ton of investor enthusiasm,
and I think there's a lot of expectations that revenues
will match the expenditures, if not exceed them, in the
next several years.
Speaker 2 (07:35):
Now Black Clox J Jacobs there speaking to Bloomberg. According
to the firms, the new locations will be spread across Texas,
New Mexico, and Ohio and eventually have a capacity of
seven gigawatts, which is as much as some cities. Open
AI says that the sites will also create tens of
thousands of additional jobs across the US. So those are
(07:56):
our top stories for you this morning. Looking at the
market stop future for the European market, open are quite weak,
down four tenths of one percent, but we're keeping an
eye on defense stocks, which have seen valleys in Asia
after President Trump's un address yesterday. US STOP futures are
in the green. Looking at the MSCI Asia Pacific Index
that is slightly softer. The dollar is stronger a tenth
(08:17):
of one percent. Oil prices are also higher this morning,
again on the rhetoric around Russia from President Trump, treasuries
holding their gains after your own power warned about those
risks in the labor market and inflation persisting in the US.
So those are the markets. In a moment, we are
going to bring you a bit more then on the
(08:37):
change in tone from President Trump and the United States
on Russia, and also how Europe's fragmented asset managers are
starting to consolidate in the face of big US players.
So we'll get onto that in a moment. But something
else has caught my eye today. How early do you
get up? Do you write lists, you take a walk?
I've been thinking about these habits after reading Bloomberg's CEO
(09:00):
diet Kate Krader, who actually sits only a few desks
away from me. She's been talking to a dozen also
leaders and founders about how they use their time in
the office and outside, and delighted to hear lots of
them get up really early, but many of them also
go to bed and get up at exactly the same time.
And I just thought it was really interesting conversation about productivity.
(09:22):
Glad to hear that actually a lot of these CEOs
do balance, you know, they talk about balance even though
they're high achievers. They balance their needs across the day.
Yakob Arab Anderson, who's the CEO of Carlsberg, calls it
FSN fitness, sleep, nutrition, and lots of others. I mean
one new CEO, Rose Van Geven at the investment company
(09:47):
Findlay Park Partners, says that she's completely ditched social media
platforms because it takes up so much of her time.
But look, I thought it was a very interesting list
on Yeah, I guess how to be one of those
top how to get maybe to be CEO with the
habits daily habits. It's in Bloomberg's CEO Diet, and I'm
going to put a link to it in our show
(10:08):
notes for you to have a read and maybe get
inspired today. Now, President Donald Trump says that NATO countries
should shoot down Russian aircraft that violate their airspace in
and addressed to the UN in which the US President
was more optimistic about Ukraine's ability to regain all of
its territory. Joining me now to discuss is Bloomberg's Brussels
(10:28):
Bureau chief Suzanne Lynch. Good morning, Suzanne. How significant a
shift is this by the US on support for Ukraine
against Russia's putin.
Speaker 3 (10:39):
I mean, I think there was a lot of relief
in New York among European allies about Donald Trump's comments
that really came out during the day. He struck a
very combative tone during his own address to the UN Assembly.
M It was an extremely negative speech where he sailed
allies over issues like migration and over energy. He said,
(11:02):
you know your countries are going to hell. And this
was the tone of his speech to the UN. But
then later when he started having those bilateral meetings with leaders,
when we heard from the President at those press points,
and we definitely saw a different tone in terms of
the specifics of the US policy visa v Russia and Ukraine,
(11:22):
and most importantly there as he said he did say
that he believed that NATO nations should shoot down Russian
aircrafts that violated their airspace. Earlier we'd heard and Marco
Rubio kind of moving away from that one slightly. This
followed comments by the Polish Prime Minister Donald Tusk earlier
in the week when he talked about shooting down Russian
(11:44):
aircraft that came into airspace. But a very significant shift
and tone there by Donald.
Speaker 2 (11:50):
Trump Russia seems to have been testing you also and
NATO with these airspace incursions that we've been talking about
throughout this week, sasan would the aircraft be shot down
in future? And also what is now the US position
on that?
Speaker 3 (12:07):
Yeah, it's an interesting one. Yesterday the NATO had a
meeting of the North Atlantic Council, which is their main
decision body here in Brussels. It had been called by
Estonia because of the incursions into its airspace. But while
that was happening, if you like, we were getting confirmation
from Denmark that Copenhagen Airport had been closed for several
(12:28):
hours because of drone incursions there. So Mark Ruta, the
NATO Secretary General, was asked a specific question, I mean,
what is the position vs. V and NATO and these
drone incursions? Now, he was very careful in his wording.
He said, you know, if this is intentional or not?
He said a few times he said NATO is prepared
(12:48):
to defend every inch of its territory.
Speaker 4 (12:52):
Now.
Speaker 3 (12:53):
He was asked as well about those comments O more
belligerent to be like comments by President or Prime Minister
Donald Tusker in the week, and he was keen to
kind of say there was no daylight between the two saying, Look,
Tusk is saying what I'm saying, if necessary, and NATO
will act, and you know we're not at that point,
but it is ready and that is a decision of
the Supreme Allied Commander. You know, we are ready to
(13:15):
respond if needed. So we got the sense from the
NATO Secretary General that obviously NATO, the Alliance is very
much on alert here. The meeting that was called by Estonia,
and indeed Estonia also spoke of the UN Security Council
on Monday in New York. I mean, this was quite unusual.
There's now a lot of concern about these repeated drone incursions,
(13:38):
particularly in Copenhagen. Just next week, Caroline is going to
be a big meeting of EU leaders and European leaders,
two day meeting in Copenhagen. So the timing of this
incursion that closed the airport is quite interesting.
Speaker 2 (13:52):
Yes, indeed, and there has been a lot going on
at the UN and also on the sidelines. I mean
Trump's speech. You mentioned how sort of aggressive it was,
and how President Trump was touting what he sees as
his big wins, ending war, wasn't doing trade deals and
ending immigration into cutting immigration into America. But that very
(14:15):
harsh criticism of Europe, also of Hamaz, also of the
UN itself. I mean, the United Nations seems to be
dealing with the worst crisis in its history.
Speaker 3 (14:25):
Really, yes, And the United States, which is the biggest
financial contributor by far to the UN, is not on
board with a lot of what the UN is doing.
It's already pulled out of some agencies and it effectively
hasn't paid its bill for the UN since last year.
So I think the UN Deecretary General has admitted that
(14:47):
the organization has a liquidity crisis, it has a crisis
of identity, and it's marking its Asian anniversary this year.
But it is interesting to Donald Trump hit on some
of those points. Even he was even critical of the UK.
Just after his visit. He talked about, you know, the
policy on wind turbine, saying that they're ruining the Scottish
(15:08):
and English countryside. He took us wipe at the London mayor,
said he can. He also talked about climate change, which
was of a big focus for the UN through its
cop system, calling it a con job. So yes, a
very belligerent and kind of isolationist speech by Donald Trump. Now,
(15:31):
I suppose the other way of looking at this is
that he did hold a series of bilateral meetings during
the day with European leaders in particular, also of course
the Argentinian leader as well, But that I suppose to
show that there was still an engagement there. He spent
the day there meeting leaders, having a reception, later having
(15:52):
serious conversations with people like Vladimir Lensky. So for all
the rhetoric brawl, the bluster in his speech, there was
a lot of diplomacy that happened, and the United States
was at the center of that yesterday in the UN.
Speaker 2 (16:05):
Yes, that's very interesting, isn't it. Suzanne, thank you so
much for your time and being with us today. That
is Bloomberg's Brussels bureau chief Suzanne lynch Worth, noting also
there was some pushback from the UK government on that criticism,
both from the Energy Secretary Ed Miliband and also from
the London mayor, Sadiq Khan. Stay with us more from
(16:25):
Bloomberg Day Bake EUOP coming up after this. Europe's money
managers have done a string of high profile deals beginning
to reshape the industry and push back against the large
US firms like black Rock and Vanguard and JP Morgan
as passive investment funds have grown in popularity and Europe's
asset managers are still very fragmented. Bloomberg's asset management reporter
(16:49):
Leo ken Scherper has penned this piece. He joins me, now,
good to see you, Leo. What is the situation facing
Europe's asset managers? And so also I guess that means
what is driving consolidation?
Speaker 9 (17:03):
Good morning, Caroline, thank you, good to see you as well. Yeah,
it's certainly not a new dynamic, but the pressure is
increasing here. First of all, you've got the flight to
passive products. You've had it for over a decade, which
means for the asset managers lower revenue margins and at
the same time you've got rising costs. And for European
(17:23):
asset managers in particular, they are also seeing coming more
under pressure from large US firms who have been winning
market share over the past decade, especially again in passive products.
And in Europe a lot of asset managers are also
controlled by banks and insurers, and these you know, big
firms now wondering you know, actually asset management only makes
(17:44):
up a very small part of our overall bottom line.
Should we double down or should we exit? So European
asset managers overall have have long agreed that they need
to merge in order to survive. And the new development
that we've seen over the last twelve months is that
we're now also seeing action. You know, b MP has
acquired acc Investment Managers that has created a one point
(18:07):
eight trillion dollar asset manager. And you also had Generally
and Natixis agree on a deal that would create Europe's
second biggest asset manager. And of course we have reported
the talks between a Mundi and Alliance Global Investors, with
which are now on hold.
Speaker 2 (18:23):
Okay, so one of the challenges then to get more
of these deals happening. I mean, what's the kind of
pipeline looking like?
Speaker 9 (18:33):
Yeah, exactly. So I've just mentioned the talks between a
Mundi and Alliance and this isn't a very europe specific problem,
but it's always a question about who gets to take control.
You know, We've had a lot of infamous co CEO
structures in corporate history, and that will always be a
curveball to big deals and asset manager and beyond. And
the second, the second curveball is, you know, national politics
(18:57):
definitely gets in the way. There's a fair amount with
doubt now that generally is deal with, that TIXIS will
go ahead, in part because the Italian government isn't too
fond of the prospect that decision makers at Generally, which
is a major buyer of Italian government bonds, will slip
further away from the Italian government's influence. And then another
(19:19):
bit quirk, slightly quirky curveball is that one of the
drivers behind BMP's acquisition of XIM has been this accounting
perk known as the Danish compromise, and that allows banks
to buy asset managers with a preferential capital treatment. Now,
the ECB has since said earlier this year, to many
(19:39):
people's surprise, well actually we don't think it's right that
banks get a better treatment for buying an asset manager.
Let's let's not do that. So that perk is now gone,
and you know that is expected to at least slow
down a bit of the deal making.
Speaker 1 (19:55):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to and beyond.
Speaker 2 (20:01):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (20:07):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:13):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka.
Speaker 1 (20:22):
And I'm Stephen Carol. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Daybreak Europe
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