Micron's Selloff, Bill Gates Interview | Bloomberg The Pulse 06/27/24
>> NEWSMAKERS ON MARKET MOVERS, THIS IS THE PULSE WITH FRANCINE LACQUA. TOM: GOOD MORNING AND WELCOME TO THE PULSE, I'M TOM MACKENZIE IN LONDON. HERE'S WHAT'S COMING UP ON TODAY'S PROGRAM. AFTER HOURS TRADING AS THE MEMORY CHIP GIANT FAILS TO MEET SKY HIGH EXPECTATIONS. DESPITE THE MARKET VOLATILITY, BILL GATES REMAINS BULLISH ON AI SAYING THE HYPE IS JUSTIFIED. WE HAVE MORE OF OUR INTERVIEW WITH THE MICROSOFT COFOUNDER. PLUS, U.K.
PRIME MINISTER RISHI SUNAK AND KEIR STARMER GET COMBATIVE IN THEIR FINAL TV DEBATE ONE WEEK AHEAD OF THE GENERAL ELECTION. LET'S CHECK IN ON THESE MARKETS. YES, CONCERNS IT SEEMS AS TO THE EXPECTATIONS NOT BEING MET BY THE REALITY, AT LEAST FOR SOME INVESTORS. THE EXPECTATIONS STRETCHED WHEN IT COMES TO THE STORY. THEY DID ACTUALLY BEAT IN TERMS OF THE EARNING STORY. THE OUTLOOK FOR SOME CAUSING
CONCERN, AND THAT STOCK TAKING A HIT. THE READ ACROSS TO THE ASIAN SEMICONDUCTOR MAKERS AND EUROPEAN CHAT MAKERS AS WELL IS THERE FOR US. WE KEEP AN EYE ON WHAT'S HAPPENING IN THE RETAIL SPACE OF THE LOWER END ON THE HIGHER END WITH AN UPGRADE COMING THROUGH WITH H&M MISSING ON PROFITS.
TO SEE THE MIX ACROSS THE MAP. S&P FUTURES POINTING OUT MODEST LOSSES. NASDAQ FUTURES LOWER BY 61 POINTS. MICRON WOULD BE PART OF THAT STORY ON THE CONSUMER OF THE U.S.
WE HAVE THE RETAIL STORY THERE AS WELL WITH NIKE EARNINGS OUT LATER TODAY BUT ALSO THE GDP PRINT AS WELL AS TO WHETHER OR NOT THAT GIVES US MORE COLOR AND MORE INFO AS WE LOOK AHEAD TO THAT POTENTIAL FED MOVE. WITH INFLATION COMING THROUGH ON FRIDAY. EUROPEAN STOCKS ACROSS THE BENCHMARK ARE CURRENTLY FLAT. ACROSS ASSETS WITH SELLING
PRESSURE COMING THROUGH ON TREASURIES YESTERDAY. TODAY YOU ARE FLAT ON THE BENCHMARK AT 433 AS YIELDS DID PEAK UP. 10 SIX ON EURO-DOLLAR. A LITTLE BIT OF STRENGTH COMING THROUGH ON THE SINGLE CURRENCY, UP A 10TH OF A PERCENT, DOWN FOR SOFTNESS FOR THE DOLLAR GIVEN THE GAINS THAT WE HAVE SEEN IN THE LAST FEW DAYS. OF COURSE FOR THE GREENBACK
MORE YEAR TO DATE. $85 A BARREL ON BRENT, UP 4/10 OF A PERCENT. WE CONTINUE TO MONITOR THE INVENTORY IN THE U.S. AS WE LEAD UP TO THE KEY SUMMER DRIVING SEASON. LET'S CHECK IN ON MICRON PRE-MARKETS. AGAIN, IT WAS THE OUTLOOK STORY
THAT FOR SOME DISAPPOINTED, DID NOT QUITE MEET THE MOST STRETCHED EXPECTATIONS, THEY STILL HAVE A BACKLOG OF ORDERS IN A BUILDING CAPACITY AROUND THAT. THAT'S PART OF THE STORY FROM MICRON. THIS THE CHIPMAKER AROUND THE MEMORY CHIPS THAT WORK WITH NVIDIA'S GPU'S. THE DEMAND HAS BEEN THERE, THE STOCK IS UP 65% YEAR TO DATE. PREMARKET MICRON DOWN A LITTLE OVER 6%. NVIDIA FEELING THE COLD RIPPLES OF THAT MICRON STORY AS WELL. CURRENTLY DOWN 1.6 PERCENT.
IT'S BEEN A VOLATILE WEEK FOR THAT MAKER OF AI CHIPS. LET'S BRING IN ON THE MARKETS FOR YOU, WHAT IS HAPPENING IN THE TECH SPACE, J.P. MORGAN ASSET MANAGEMENT CHIEF MARKET STRATEGIST AT J.P. MORGAN. THANK YOU FOR JOINING US IN THE STUDIO. LET'S START WITH WHAT WE LEARN FROM WHAT'S HAPPENING IN THE TECH SPACE THIS WEEK. WE'VE HAD THE VOLATILITY AROUND NVIDIA, THAT THREE-DAY SLUM, THEN THE RALLY NOW IT'S UNDER PRESSURE, MICRON COMING IN WITH AN OUTLOOK THAT MISSED EXPECTATIONS FOR SOME. DOES IT SUGGEST ITS FRAGILITY
AROUND THE AI THEME? QUEX WHAT WE KNOW RELATIVE TO EVERYONE COMPARING TO THE TO THOUSANDS AS MANY OF THESE COMPANIES ARE DELIVERING FANTASTIC PROFITS, THE REASON NVIDIA HAS DONE WELL IS LARGELY BECAUSE OF THE PROPHETS DELIVERED RATHER THAN JUST WHAT WE WERE HOPING FOR FOR THE FUTURE. IN THAT ASPECT I DON'T THINK TECH IS BROADLY ABOVE ALL, HOWEVER, WHAT WE DID LEARN FROM THE TO THOUSANDS, AND THIS IS WHAT I THINK WE ARE STARTING TO SEE NOW, USUALLY NOT EVERYONE IS A WINNER. AND WORKING OUT WHICH OF THE SPECIFIC COMPANIES, WHICH ARE GOING TO TAKE THE MARKET SHARE, REALLY BE THE DOMINANT PLAYER, THAT'S A REALLY TRICKY PART. FOR US, IT WAS ABOUT ACKNOWLEDGING THE TECH STORY THAT IS DEFINITELY TAILWINDS TO WHERE THIS IS GOING, THE BELIEVERS IN AI BEING A POWERFUL FORCE. BUT PERHAPS BEING CAREFUL ABOUT HOW YOU ARE ACTIVELY MANAGING SOME OF THAT CONCENTRATION RISK, BUT ALSO I THINK THINKING MORE DEEPLY BECAUSE TECH VERSUS THE RISK -- REST IS THE BIG QUESTION. STEPPING BACK AND THINKING, IF AI IS GOING TO BE SO TRANSFORMATIVE, THEY NEED CONSUMERS FOR THE PRODUCT.
SO, LOOKING OUTSIDE OF THE BIG SEVEN TO THE OTHER THREE ELSEWHERE IN THE WORLD, THINKING ABOUT WHAT ARE WE HEARING ABOUT HOW OTHER COMPANIES ARE GOING TO USE AI, THAT WILL TELL US A LOT ABOUT THE FUTURE EARNINGS OF THE BIG SEVEN. FOR US IT WAS A LITTLE BIT ABOUT CAREFULLY MANAGING THE CONCENTRATION RISK, THE TAKING ADVANTAGE OF THE CONSUMERS OF AI RATHER THAN FOCUSING SQUARELY ON THE PRODUCERS, WHICH I THINK IS WHERE THE MARKET HAS BEEN SO FAR. TOM: IN TERMS OF ALLOCATION, WOULD YOU TAKE PROFIT IN THOSE BIG TECH NAMES TO ALLOCATE TO THE CONSUMER PLAY AROUND AI? >> I THINK THAT'S A GREAT THING TO BE DOING. IT ISN'T JUST ABOUT MANAGING CONCENTRATION RISK. NVIDIA IS 6% OF THE S&P. ONE OF THE THINGS THAT
CONCERNED ME WAS WHEN I LOOK AT THE EARNINGS EXPECTATIONS FOR A COMPANY LIKE THAT AT THE END OF NEXT YEAR HAD THESE ARE PEOPLE WHOSE SOLE JOB IS TO ANALYZE THE COMPANY AND CONSIDER WHERE IT'S GOING. IT'S NOT MY JOB, I'M A MACRO STRATEGIST. THE RANGE OF THE EARNINGS IS SO WIDE. GIVEN THAT, I DON'T RISK, IN ONE SINGLE STOCK. FOR US, IT HAS BEEN ABOUT ACTIVELY MANAGING AND STARTING TO MAY BE SHUFFLED TOWARDS THE BENEFICIARIES RATHER THAN THE PRODUCERS. TOM: ON THE CONCENTRATION RISK AND THE LACK OF BREATH IN THE MARKET PRONOUNCED AROUND THE S&P, IS THERE A CHANGE IN NARRATIVE WHEN THE FED FINALLY DOES CUT? IS THAT THE CATALYST FOR BROADENING OUT OF THIS MARKET? >> I DON'T THINK IT IS, I THINK MONETARY POLICY, ONE OF THE BIG THINGS WE HAVE LEARNED IS THAT MONETARY POLICY IS NOT AS IMPERATIVE, THEREFORE RATE HIKES DID NOT HURT AS MUCH AS WE THOUGHT, SIMILARLY, I DON'T THINK RATE CUTS ARE GOING TO BE THE BIG STORY. FISCAL POLICY IS FAR MORE POTENT, THE MONETARY POLICY, I BELIEVE, AND WE STILL HAVE FISCAL TAILWINDS. THE TEXT -- CHECKBOOK IS STILL
PRETTY MUCH OPEN IN THE U.S. THE IRA, THE JOBS ACT, THE CHIPS ACT, ALL THESE MULTIYEAR PROGRAMS ARE STILL A HUGE STIMULUS THROUGH THAT ECONOMY. THAT, I THINK, IS STILL GOING TO BE THE SIGNIFICANT TAILWIND. I THINK IT'S MORE ABOUT HOW THE
STORY BROADENS OUT FROM THE UNDERLYING FUNDAMENTALS. THE FED COULD HELP THE NARRATIVE. PEOPLE IN SMALL CAPS ARE WAITING FOR THE FED AS AN INDICATOR TO MOVE THEIR, BUT I THINK WE PLACE TOO MUCH WEIGHT ON INTEREST RATES. TOM: THAT'S VERY INTERESTING. I THINK FOR A LOT OF PEOPLE WHO THINK ABOUT FISCAL STIMULUS, YOU THINK ABOUT THE STIMULUS CHECKS THAT CAME THROUGH FOR CONSUMERS AND HOUSEHOLDS AND WE KNOW THE DATA SHOWS A DRYING UP. YOU REMIND US OF THE FACT WE HAVE LONG-TERM PROGRAMS BACKED BY THE SPENDING THAT WILL NOT BE DERAILED IN THE SHORT-TERM.
YOU SEE THAT IS BEING SUPPORTED FOR THE MARKETS, THE MARKETS ON AN INDEX -- INDEX LEVEL TO HAVE MOMENTUM. >> THE U.S. IS STILL RALLYING A 6% DEFICIT, THE U.S. EXCEPTIONALISM DISCUSSION, THE ONE THING I DO IS REMIND PEOPLE THE U.S. IS RUNNING A 6% DEFICIT, A TERM OF RECORD LOW UNEMPLOYMENT, THAT IS SLIGHTLY HELPING WITH HOW THE U.S. ECONOMY IS PRETTY RESILIENT, HOW EARNINGS HAVE PROVED RESILIENT, AND NEITHER CANADA ARE TALKING ABOUT RAINING THAT IN. TOM: YOU SEE A CONVERGENCE BETWEEN
THE U.S. AND EUROPE, WHAT IS THE APPROXIMATE TIMEFRAME FOR HOW YOU HAVE THAT IN VIEW AND HOW SHOULD PORTFOLIOS ADJUST AROUND THAT? >> BEFORE THE FRENCH ELECTION IT WAS ABOUT THE MACRO. I THINK, IN EUROPE, WE REALLY HAVEN'T YET HAD OUR POST-PANDEMIC BALANCE. WE CAME OUT OF THE PANDEMIC INTO RUSSIA INVADING UKRAINE AND AN EXTRAORDINARY COST OF LIVING CRISIS. WE STILL HAVE THOSE PENT-UP SAVINGS. OUR CONSUMER HAS BEEN ROCKED,
OUR CONSUMER HAS BEEN LACKING CONFIDENCE FOR THE LAST TWO YEARS, UNDERSTANDABLY, BUT WE ARE COMING OUT OF THAT NOW. I THINK MUCH OF THE GROWTH, THE CONSUMER GROWTH THAT THE U.S. HAS EXPERIENCED LAST YEAR, I THINK IN EUROPE WE ARE ABOUT TO SEE SOME OF THAT COME THROUGH. SO I DO SEE A CONSUMER UPTICK
COMING THROUGH. AT THE MOMENT, THE MARKET HAS TAKEN A STEP BACK FROM THAT OPTIMISM, OR AT LEAST THE GREEN SHOOTS OF THE OPTIMISM. TOM: IS THAT BUYING OPPORTUNITY? >> I THINK IT IS FEARED IN A COUPLE OF MONTHS WE WILL TALK ABOUT FRENCH POLITICS AT ALL. PARTICULARLY WHEN INTERNATIONAL
INVESTORS I DON'T THINK HAVE QUITE YET UNDERSTOOD ENTIRELY IS, THIS IS NOT 2011-2012, NONE OF THESE MORE POPULOUS PARTIES ARE ADVOCATING LEAVING THE EURO OR ADVOCATING LEAVING THE EU, THIS IS ABOUT MIGRATION, WHICH IS A THREAD WE ARE SEEING IN POLITICS ACROSS THE WEST, AND IT'S ALSO, IN MANY PARTS, ABOUT A MORE BUSINESS FRIENDLY REGULATORY SYSTEM. SO, I THINK THAT IS TO ME, AND I THINK ALSO THAT THE NEED FOR A DEGREE OF FISCAL PRUDENCE FOLLOWING THE EXPERIENCE, PERHAPS THE U.K. GAVE A GOOD EXAMPLE OF HOW GOVERNMENTS CANNOT PUSH THE ENVELOPE 18 MONTHS AGO, OF COURSE WITH THE EVENTS THAT HAPPENED IN THE MINI BUDGET CRISIS, THAT'S BROUGHT A DEGREE OF REALITY TO THE FISCAL DISCUSSION. MOST OF THEM ARE TALKING A FIT
-- A PRETTY FISCAL GAIN. WHATEVER HAPPENS AS A RESULT OF THE FRENCH ELECTION, THE COHABITATION AT THE MOMENT, WITH WHERE IT WILL BE WITH THE RIOT. TOM: FRENCH BANKS ARE DOWN ABOUT 10% SINCE THAT ANNOUNCEMENT BY PRESIDENT MACRON COULD BE AN OPPORTUNITY.
I WANT TO DRAW ON YOUR EXPERIENCE WITH THE BANK OF ENGLAND AS AN ADVISOR TO THE NPC AT THE BANK OF ENGLAND. WHAT IS YOUR VIEW IN TERMS OF HOW THE GREAT CYCLE UNFOLDS? IS AUGUST LOCKED IN FOR YOU AT J.P. MORGAN WITH THE BOE GOING, AND HOW DO YOU SEE THAT CYCLE OF CUTS GOING FOR THE CENTRAL BANK. >> THE BANK DOESN'T REALLY SEEM TO WANT TO CUT. I THINK THEY ARE CONCERNED THAT
THESE POLICY RATES ARE RESTRICTIVE, AND THIS IS JUST LONG AND VARIABLE LAGS. SO THEREFORE, I THINK THEY WOULD PERCENT AS, THIS IS AN EASING, THIS IS US TAKING SLIGHTLY OFF THE BREAK. SO THEY NEED THE DATA, HOWEVER, TO CONFIRM THAT THAT'S THE RIGHT THING TO DO, AND THE DATA HASN'T GONE THEIR WAY. WE DO NEED TO SEE THAT
SOFTENING IN THE DOMESTIC INFLATION RATES, WE NEED TO SEE WROTE -- WAGE GROWTH COMING OFF MORE BROADLY ACROSS INDICATORS, WE NEED TO SEE SERVICE SECTOR. I THINK WE WILL GET SOME OF THAT, I THINK AUGUST IS THE MOST LIKELY GIVEN THEY SEEM TO REALLY WANT TO CUT. MAYBE IT GETS PUSHED OUT TO NOVEMBER, BUT EITHER WAY, I THINK THAT THE NEXT MOVE IN THE U.K. IS DOWN. TOM: THE MSCI CHINA INDEX FALLING INTO CORRECTION TERRITORY DOWN 10% FROM ITS HIGHS IN MAY. CAN BROADER EM PERFORM WITHOUT THE CHINA EQUITY IMPULSE COMING THROUGH? >> IS THE QUESTION I THINK I MESSED A LOT AT THE MOMENT. I WOULD SAY IN THE SHORT-TERM, IT'S A LITTLE BIT MORE CHALLENGING, THE ROUTES IN WHICH CHINA SUPPORTS THE BROADER COMPLEX, COMMODITY DIP -- COMMODITY DEMAND, TOURISM FLOWS MAKE THE OUTLOOK AND ITS NEIGHBORS A LITTLE BIT MORE CHALLENGING. HOWEVER, MEDIA, AND WE ARE ONLY
TALKING 3, 4, FIVE YEARS, SOME OF CHINA'S WOES ARE REAL BENEFITS TO ELSEWHERE IN THE REGION, I HAVE BEEN SURPRISED HOW QUICKLY WE SEE TRADE ROUTES RESHUFFLE, HOW THE FRIEND-SHORING NARRATIVE IS PLAYING OUT. THEREFORE YOU ARE SEEING LOW VALUE ADDED MANUFACTURING MOVE SOUTH ASIA, HOW -- HIGH VALUE-ADDED MANUFACTURING MOVE NORTH, MOVEMENTS TO MEXICO, I DO THINK THAT SOME OF CHINA'S WEAKNESS IN PARTICULAR AND HOW EASY TRADING RELATIONS CHANGE IS GOING TO REALLY BENEFIT OTHER PARTS. TOM: THANK YOU VERY MUCH, CHIEF MARKET STRATEGIST FOR A MERE AT J.P. MORGAN ASSET MANAGEMENT WITH A
VIEW THERE ON EM ADJUSTING SUPPLY CHAINS, MAYBE HOW TO INVEST AROUND THAT AND THE BOE PROBABLY GOES IN AUGUST ON THE TECH RALLY HAS FURTHER TO RUN BUT YOU NEED TO DISTINGUISH BETWEEN THOSE MAJOR AI NAMES. BILL GATES TELLS BLOOMBERG'S THAT THE GREEN BENEFITS OF AI WILL OUTWEIGH ITS OMISSIONS. WE WILL HAVE MORE WITH THE BILLIONAIRE CLIMATE TECH INVESTOR OF MICROSOFT COFOUNDER. THAT IS NEXT. >> INNOVATION HAS TO HAPPEN. WE HAVE REALLY THOUGHT ABOUT HOW WE WOULD PARTNER WITH PEOPLE TO BRING IN INNOVATION THEORY TO DIFFERENT PARTS OF THE WORLD. HOW CAN WE PARTICIPATE AND HELP? WE ARE GRATEFUL WE HAVE A NEW PROGRAM YOU MIGHT'VE HEARD ABOUT WITH SINGAPORE WHERE WE ARE PARTNERING TO DO SOME EXPANSION OF OUR FELLOWS PROGRAM FOR THE REGION REALLY TO SPUR INNOVATION THERE, DRAW AND ENTREPRENEURS, DO WHAT WE DO AND ALL THE PARTS OF OUR WORK IS TRY TO HELP INNOVATORS SUCCEED. TOM:
THAT WAS THE EXECUTIVE DIRECTOR BREAKTHROUGH ENERGY, THE CLEANTECH INVESTMENT FIRM FOUNDED BY BILL GATES. MICHAEL BLOOMBERG THE FOUNDER AND MAJORITY OWNER OF BLOOMBERG LP IS AN INVESTOR IN BREAKTHROUGH ENERGY VENTURES. CLIMATE TECH INVESTOR BILL GATES HAS TOLD BLOOMBERG THAT ARTIFICIAL INTELLIGENCE WILL PAY FOR ITSELF WHEN IT COMES TO ITS ASSOCIATED GREENHOUSE GAS EMISSIONS. THE TECHNOLOGY WILL HELP PUSH FORWARD THE ENERGY TRANSITION.
GATES ALSO WEIGHED IN ON THE VALUATIONS OF BIG TECH COMPANIES DRIVEN BY THE AI BOOM. BILL: THE BIG BREAKTHROUGHS COME WHEN AI TEACHES YOU ABOUT MATERIAL SCIENCE, LIKE, OK, I CAN MAKE SOLAR CELL WITHOUT USING SOLAR CUT. OR, I CAN GROW FOOD VERY EFFICIENTLY IN A LABORATORY. FUNGI OR SOME OTHER APPROACH. SO AI GETS INTO THE BASIC SCIENCE THINK THAT IT GOES BEYOND JUST KIND OF A SUPERSMART TUNING WHERE YOU SEE 10% HERE, 15% THERE TO HELPING YOU WITH THAT FUNDAMENTAL DESIGN OF THE PRODUCT.
>> HOW CONCERNED SHOULD WE BE ABOUT YOU'RE TALKING ABOUT ENERGY, THE EXTRA ENERGY DEMAND THAT'S GOING TO COME FROM CLIMATE AI BOOM? IS IT WORTH THE EXTRA EMISSIONS JUST FOR THE INTELLECTUAL POWER THAT AI WILL BRING TO BEAR ON THIS? BILL: THE ADDITIONAL ELECTRIC DEMAND FROM ELECTRIC CARS, SO WE TURNED THAT OVER OR STILL MANUFACTURING, ALL OF THOSE DWARF EVEN THIS AMAZING DEMAND FOR DATA CENTERS, THERE'S LOTS OF WAYS WE ARE TRYING TO MAKE THE AI COMPUTATIONS MORE EFFICIENT, WE ARE NOT USING AS MUCH ENERGY. THE EXACT PATH THAT ENDS UP BEING 3% OF ELECTRIC USE OR 6% OF ELECTRIC USE, IT'S NOT GOING TO GO ABOVE 10%, SO, YEAH, IT HAS TO FIT IN, IT HAS TO PAY THE PRICE, THOSE COMPANIES ARE PROBABLY SENSITIVE TO WANT TO USE GREEN ENERGY FOR ANY ELECTRICAL CUSTOMERS IN THE COUNTRY, SO THEY WILL HELP PUSH THE GREEN TECHNOLOGIES FORWARD. THEY ARE WILLING TO PAY SOMEWHAT OF A PREMIUM TO SAY THAT IT'S ALL DONE WITHOUT GREENHOUSE GAS EMISSION. WHEN IT COMES TO ADMISSIONS, DO YOU THINK AI WILL PAY FOR ITSELF? BILL: ABSOLUTELY. >> SPEAKING OF AI, YOU HAVE BEEN IN THE INDUSTRY FOR A LONG TIME, YOU HAVE SEEN LOTS OF UPS AND DOWNS IN THE TECH SPACE. RIGHT NOW WE ARE SEEING A TIDAL WAVE OF MONEY GOING TO AI, NVIDIA RECENTLY BECAME THE WORLD'S MOST VALUABLE COMPANY, ALTHOUGH BRIEFLY, WHEN YOU LOOK AT MARKET CAPS LIKE THIS, DO YOU WORRY THAT WE ARE SEEING BUBBLE EVALUATION? BILL: I'M NOT A BUYER AND SELLER OF TECH STOCKS LIKE ON A DAILY BASIS OR ANYTHING, THESE MULTIPLES AREN'T AS HIGH AS THEY WERE, SAY DURING THE INTERNET BUBBLE, AND THE GROWTH IS REAL.
AI IS NOT PETS.COM, THIS IS SOMETHING VERY FUNDAMENTAL. DON'T TAKE MY VIEW ON ANY PARTICULAR STOCK, BUT THE GROWTH POTENTIAL, THERE WILL BE SOME FAKE WINNERS IN THIS AI SPACE, WHICH IS WHY YOU SEE ALL OF THE TECH COMPANIES, INCLUDING MICROSOFT, PUTTING TENS OF BILLIONS OF DOLLARS INTO NOT JUST THE BACK END CAPACITY, BUT WITH REENGINEERING THEIR APPLICATION SO THEY ARE FAR MORE PRODUCTIVE. TOM: BILLIONAIRE CLIMATE TECH INVESTOR IN MICROSOFT COFOUNDER BILL GATES SPEAKING TO BLOOMBERG. COMING UP, EU LEADERS GATHER WITH THE HOPES OF FINALIZING THE BLOCKS NEW LEADERS. MORE ON THOSE CHANGING POWER DYNAMICS NEXT.
TOM: EUROPEAN UNION MEETINGS -- LEADERS ARE MEETING AS THEY FAIL TO REACH AN AGREEMENT LAST WEEK. LET'S GET MORE FROM BLOOMBERG'S OLIVER CROOK WHO HAS BEEN FOLLOWING ALL THE INTRICACIES AROUND THIS. FIRST UP, THE EU COUNCIL MEETING, SINCE THE ELECTION THE FIRST ONE, WHAT DO LEADERS NEED TO GET DONE AT THIS MEETING? OLIVER: OBVIOUSLY WHAT THEY NEED TO GET DONE, THE REAL DELIVERABLE IS NAMING THOSE THREE TOP JOBS LIKELY TO BE FILLED BY URSULA VON DER LEYEN, THE EU COUNTER PRESIDENCY LED BY ANTONIO AND THE FOREIGN AFFAIRS POLICY FILLED BY THE ESTONIAN PRIME MINISTER. THOSE ARE THE THREE MAIN JOBS YOU REALLY NEED TO HAMMER DOWN THOSE THREE MAIN JOBS ARE FOR YOU GET ANYTHING ELSE DONE WITHIN THE 8 -- WITHIN THE EU BECAUSE EVERYTHING TRICKLES DOWN FROM THOSE THREE ANCHOR JOBS.
BUT THEY ALSO NEED TO DO IS PUT OUT THEIR STRATEGIC AGENDA WHICH IS A DOCUMENT THAT ALL THESE NEW LEADERS NEED TO AGREE ON THAT SETS UP THE POLICY PRIORITIES FOR THE EU OVER THE NEXT FIVE YEARS. IN THERE HE WILL FIND FAMILIAR TOPICS FROM UKRAINE DEFENSE, SECURITY, OF COURSE THE QUESTION OF COMPETITION, ALSO WE HAVE ZELENSKY IN TOWN TODAY WHO WILL BE MEETING WITH THE LEADERS ON THE WEEK THAT THE EU AND UKRAINE HAVE BEGAN THE ACCESSION TALKS. THAT IS THE FORMAL NEGOTIATIONS FOR UKRAINE JOINING THE EU. THIS IS A VERY LONG PROCESS BUT SIGNIFICANT ONE TO BEGIN FORMALLY. TOM: ALL OF THIS ON THE DOCKET FOR EU LEADERS AT A TIME WHEN THIS POWER DYNAMICS ARE SHIFTING, HOW IS THAT IMPACTING AND HOW IS THAT ADJUSTING THE INSTITUTIONAL NATURE OF THIS EU? OLIVER: I THINK IT'S INTERESTING TO THINK ABOUT HOW MACRON'S WEAKNESS IN FRANCE AND THE STRENGTH IN ITALY HAS TRANSLATED TO A KIND OF REAL POWER WITHIN THE EU.
FROM MALONEY SHE WAS IN THE ITALIAN PARLIAMENT RAILING AGAINST THE EU AND THEIR APPOINTMENT PROCESS SAYING SHE HAD BEEN SHUT OUT OF THE TOP JOB NEGOTIATION. SHE DOESN'T TECHNICALLY HAVE A SEAT THERE BECAUSE IT'S THE COALITION OF THE BIG THREE THAT HAVE COME TOGETHER TO NAME THOSE TOP JOBS. BUT SHE CAN MAKE A LOT OF TROUBLE FROM THE SIDELINES. MIKE ROSE PRIORITIES WILL BE
FALLING DOWN THE AGENDA, JOINT DEBT WAS SOMETHING HE WAS CONCERNED WITH. ON THE QUESTION OF WHETHER A RIGHT OR LEFT GOVERNMENT COMES IN FRANCE, NEITHER OF THOSE ARE GREAT FOR THE EU. TOM: OLIVER CROOK ON THE GROUND FOR US IN BRUSSELS WITH THE CHECK OF THE POLITICAL DYNAMICS IN THE EU. THANK YOU VERY MUCH. NOW, A WEEK INTO THE U.K.
ALEXION, WE ARE GOING TO LOOK AHEAD TO HOW THAT VOTE IN THAT
2024-07-04 06:48
