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BlueBag DAYVIQRE podcast. Good morning, It's Tuesday, the thirtieth of June. I'm Caroline Hepke in London and I'm.
Stephen Caroline Brussels. Coming up today. An explosive device seriously injures three people in Monaco, as the suspected attacker flees to France.
The ECB president Christine Legard tounts the EU's growing ability to resist global economic upheaval.
Plus what's happening with the world's most popular messaging app. Why three billion people will soon be able to connect to each other without revealing their phone number.
Let's start with the roundup of our top stories.
A man hunters underway in France after three people, including a teenager, were injured in an explosion at an apartment building in Monaco. French media reporting that one of Ukraine's richest oligarchs, Vadim Ermolaev, is among the wounded. Monico's Minister of States described the incident, which took place at around nine pm local time, as a deliberate explosion. Jehaues Spinelli, mayor of the neighboring French town, Bosslet, explained more about what happened.
Visibly, an explosive device was placed in front of the entrance of a building, injuring several people. One person fled running to the town of Boslet. We have been able to follow him with a camera in the town of Boslet. We have immediately informed the French National Police, who are working in collaboration with the municipal police of Bosslet and obviously with security of the Principality of Monaco.
As Bosele is mayor. Speaking there, Monico's public prosecutor Stefan Cibo said a suspect had left a bag or package in the building's lobby before leaving.
Europe is becoming less vulnerable to external shocks, according to the European Central Bank President Christine Lagarde. Speaking at the ECB's annual retreat in Cintra, the central Bank chief said that stronger banking and fiscal regulations, as well as investments in low carbon energy, have paid off for the whole region.
The euro Area has also whether the largest US tariff increase in almost a century, as well as what the International Energy Agency has called the largest oil supply disruption in history that didn't go without a significant cost. It has been substantial, but the economy has not been derailed.
Christine Legald's comments came after the ECB raised interest rates just weeks ago in a bid to contain price pressures triggered by the Iran War. While all prices have retreated since the hike, policymakers, including Isabelle Schnabel, argue that boring costs will probably still need to rise further.
The European Union and China have set in October deadline to make progress on a series of trade disputes. As part of the effort, the two economic powers have agreed to establish a joint platform to monitor trade flows and identify any sudden surges. Speaking after meeting China's Commerce minister in Brussels, EU Trade Commissioner Maracheftovich said both sides would work together to resolve their issues.
Today's discussion were intensive, focused and constructive. My objective from the outset has been clear to begin balancing the trade relationship between the European Union and China. The gap is widening, the China's export to the EUKE rising, while our market share in China keeps shrinking.
Marschaftovich faces an uphill battle that EU is trade deaf sit with China reached three hundred and sixty billion euros last year, with every member state running a deficit.
The UK is hoping AI and drone investment will help transform its aging military. Prime Minister Kistarma is that to publish a heavily delayed defense investment plan later today. He met NATO's Secretary General Margutta yesterday and highlighted the importance of the military alliance so once.
Again into the UK, into LATO and beyond that to the more European into the boar board for the future of proser single most successful military lass as.
Well as are known.
However, Starmer's plan has been criticized for being underfunded, abow that triggered the resignation of Defense Secretary John Healey. The Labor government has vowed to raise defense bending to two point six percent of GDP next year and three and a half percent by twenty thirty five, but has not set out the path between the two targets.
Iran is dialing up its rhetoric about controlling the Strait of horror moves ahead of new talks with the United States. Bloomberg's midleast correspondent to beer Abu Omar says it's clear Tehran's greater control of the strategic waterway.
We've heard from several officials in Iran saying that once the sixty day period is over, we're going to start seeing tolls or fees starting to get charged to shipowners in the strait of her moves, and so Iron's position continues to be solidified through official seeing that whether or without the help, they will continue to bring up the topic of.
TOLLINGA birabem Our ads that Aran's stance puts more pressure on its talks with the US, later to happen in Katar later today. Countries around the world are concerned that any toll would add to already high energy prices.
WhatsApp is select the messaging services three billion global users select a username for their account. B begs You and Potts has more on the changes.
From this week. WhatsApp users can reserve a unique username. It's a change designed to increase privacy by letting people connect without having to share their phone number. The feature resembles similar ID systems offered by rival messaging apps, including Signal, With the usernames becoming operational later this year. To avoid impersonation and scams, Whatsapple set aside existing Facebook and Instagram
usernames for their owners during the reservation period. In London, I'm Unepots, Bloomberg Radio.
Two more European teams are out of the World Cup after losing in the round of thirty two on penalties. Germany fell to Paraguay, who've declared today a national holiday after pulling off the tournament's biggest upset so far, eliminating the four time champions in a shootout. Here's the moment Fans in the South American country celebrated. The result was reaction from Paraguay's capital ascension there. Earlier this morning, Morocco defeated the Netherlands after their match went to spot kicks,
eventually tryumphing three to two. The team is now set to face Canada in the round of sixteen.
Okay, good stuff of football. All right, let's think about the markets this morning? Well, I mean, we as excited about global equities, maybe on trap for their best quarter in almost six years. Asian stocks have seen a second quarter boom. Just look at the COSPI up seventy one percent this quarter. MSCI Asia Pacific index this morning continues
to rally up by one point four percent. You see gains for the CSI three hundred and the tie EGGX These Xetra tacts in Germany, though underperforming the stock six hundred this month, which is one a notable point in terms of European stock futures. This morning, we're currently up by six almost seven tenths of one percent. There was also a tech rally in the US on War Street yesterday. The Japanese yet hits a four decade low. That's got
a lot of speculation about further intervention. Rencrewed futures down one percent ahead of these expected possible US Iran talks. Tenure treasury years not doing much this morning four point three seven percent, and gold prices so gold slipping just below four thousand dollars down seven tens of one percent this morning. Remember we do have French, German, Italian CPI, so inflation data all to come later and nine point fifteen pm UK time tonight it will be earnings out
from Nike. Those are the markets.
Well, in a moment, we'll bring you more on that explosion in Monaco, plus what to expect from the ucv's forum in Centro and Portugal. But first of the story that has caught her eye this morning, and the etiquette
of using AI note takers during video calls. Isilapawsko been writing about this for Bloomberg Business Week, and those little blank squares that can appear in zoom calls, the note taking bots that are lurking plenty of legal issues around who's listening to meetings and who has access to that material afterwards, He's actually focusing on the interpersonal dilemmas that they can create between those who are very pro AI
and those who are perhaps more skeptical. She describes it as a new layer of fisient and a times outrage in workplace interactions. So people complain that people are skipping meetings and sending note takers AI note takers in their place. But there's also this problem that the note takers pick up the small talk, the casual gossip, perhaps the jokes that fill down time and meetings. Do we want this to be recorded? I don't think so.
I have an image of Rita Skeita, you know, watching over me scribbling everything down. I don't love that idea, but mind you, on the other hand, we got used to CCTV. People were kind of worried about the privacy implications of that, But this does feel different in terms of scale, doesn't it. The other thing that I think about with this issue is ideas, you know, giving your ideas away to all of those note takers, and what is done with all of those notes afterwards, where do
they go and how are they interpreted? I think that's very very difficult issue that's going to have to be tackled.
I just think there's the question of tone. I mean, the things that you would never down in an email, that you might casually say, which are part of you know, regular human interaction at work. Not necessarily sure, I want to have those that are taken to by anoetaker anyway, very interesting people put a link to us in our podcast show notes. Well, let's bring you more details now
of that explosion in Monaco which injured three people. French media reporting the victims, where the Ukrainian oligarch the dem ermaelev and his family are reported to at Bio has more on this story too of what do we know about what happened?
Well, there are limited details so far, but we do know that three people, including a teenager were wounded on Monday in an explosion at a residential building in Monaco that took place around nine pm local time. Authorities have described it as a deliberate attack at this point, and we've heard from the mayor of the neighboring French town, which is Bosolet. He's explained that there was an explosive device placed in front of the entrance of the building
and that's what injured several people. He's also said that one person fled the scene and actually ran to Bosaly. We've also heard from Monaco Minister of State who's confirmed that the suspect crossed the border into France on foot and then was able to be identified via video surveillance in Monaco and also in Bosolet. So now currently the investigation is ongoing. We know that the French National Police are working in collaboration with both the municipal police of
Bosolet and also security of the Principality of Monaco. In terms of the victim, as you mentioned, French media are reporting that one of Ukraine's richest oligarchs, which is Verdim I Ermalayev, is among the wounded. And it's worth mentioning as well that Ukrainian media outlet Ukraine's Skapravda have said that he was targeted by Ukrainian sanctions in twenty twenty three for ties to Russia. That's really all we know in terms of specific details so far.
Violent incidents like this are very rare in Monaco. What's been the reaction from authorities.
That's true, Caroline, Monaco is a tiny area. It's actually less than one square mile of land. They do have very low crime rates, a very high degree of CCTV usage as well. But it is worth considering that Monaco is on the Financial Action Task Force and the EU Gray List in terms of areas that are deemed insufficiently vigilant about dirty money, so it's at high risk when it comes to anti money laundering and counter terrorist financing efforts.
We've seen the Principality Titan laws around this, trying to show that, trying to show authorities that it can take meaningful enforcement action when it comes to that. But nevertheless, this is very unusual for Monaco, and we've already heard from the leader, Prince Albert the Second. He's called this an odious act and said that all the country's services are mobilized to ensure security. So at the moment the
investigation is ongoing. It's selectly. We might have more details in the coming hours.
Okay to out a bio. Thank you very much, Stay with us. Were from Bloomberg Daybreak. Europe coming up after this.
Now, the ECB president says that Europe is becoming less vulnerable to outside shocks thanks to stronger regulation and more investment into renewable energy. Christine Leagard was speaking at the opening of the European Central Banks Annual Retreat in Portugal, and our editor at large Francis Lackward joins us now from CenTra for more. Good to speak to you, Francine. Christine Leguard was quite good morning. She was quite hopeful
in her opening address. What did you think? There are plenty of challenges that central bankers are going to be discussing there, So what did you take away from what she said?
So it was an interesting speech, and as always, it's really nice being in CenTra because you have central banks from really around the world trying to get to know each other. If you're new or eleven new central bankers you know worldwide that are here in CenTra. Also, Kevin wats So the speech yesterday was really maybe a little bit more hopeful than if it was in a press conference.
But Christine Leguard did not really shy away from also really framing the big questions, which is they've decided not to do forward guidance or not looking at forward guidance because of the big uncertainty. So it's the energy shock that really changed the trajectory for all these central banks in the last seven to eight months, and she really laid it out as we're not one hundred percent sure what will come and because of the uncertainty, we don't
want to give forward guidance. But it's also very clear that she really focused on the strength of the European economy. She talked about financial stability and the fact that Europe is getting more resilience to economic shocks, but that was less interest rates and more on financial stability. So it
was an interesting speech. And then halfway through you had Kevin Warris, who's really kind of the star of the show this week because it's the first time since he was appointed by President Trump that he gets to mingle with other cent bankers and it's his first really big trip abroad.
Now, Frian, you're going to be speaking to all the key people there at center. Tell us about some of the conversations that you're looking forward to.
Well, I'm looking forward to students speaking to the Chief e Congress of the VCB, Philip Plane. I think it will be an interview. We're all try and understand where he sees the next hike. If you look at markets, they are expecting the ECB to hike one more at one more time this year. And you know, it'd be great if he gave us a clue. I don't know if you will, but it'd be great if he gave us a clue on whether this would be in July
or September. Now, if you think about the problematic at hand, so you're close to you know there there's not a piece deal between the US and Iran. You're close to a resolution, which means that you could see oil prices fall even further. But at the same time, because the energy prices went through such volatility in the last three
four months, you also see second round effect. So it'd be really interesting to see how he places it, whether it means that they really have to preempt Madame Legand said something in her speech which then got a lot of central bankers talking is that the hike they did in June was not an insurance policy. Right then, she looked at the data with her committee and they decided
that it was best to hike there. And so she really pushed back against this idea that it's an insurance hike, you know, if something were to happen more for oil prices going higher. So I'll try and push them on that as well.
Thanks for listening to Bloomberg Daybreak Europe.
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