Trump Targets China; Merz Wins Chance to Fix Germany

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.240 --> 0:00:13.440 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.440 --> 0:00:15.160 are the stories we're following today. 0:00:15.400 --> 0:00:18.000 Karen, we begin with the latest trade moves from President 0:00:18.000 --> 0:00:21.280 Trump aimed at China. In recent days, the President has 0:00:21.400 --> 0:00:25.160 ordered a key government committee to curb Chinese spending on tech, energy, 0:00:25.200 --> 0:00:28.840 and other key sectors. The administration has also proposed fees 0:00:28.920 --> 0:00:32.040 on commercial ships made in China, and it's called on 0:00:32.200 --> 0:00:36.040 Mexico to impose tariffs on Chinese imports. We get more 0:00:36.040 --> 0:00:38.440 on that from Bloomberg News Senior editor Bill Ferries. 0:00:38.800 --> 0:00:43.720 Commerce Secretary Howard Lutnik, Jamison Greer, who is the Trump's 0:00:43.720 --> 0:00:48.519 nominee to lead the US Trade Representative Office, and another 0:00:48.600 --> 0:00:50.720 top eight at the White House have all approached the 0:00:50.760 --> 0:00:54.040 Mexican government with the idea of them putting tariffs on 0:00:54.160 --> 0:00:59.520 Chinese imports, potentially as a way of avoiding US tariffs 0:00:59.520 --> 0:01:00.840 on Mexi Can imports. 0:01:00.920 --> 0:01:03.960 Bloomberg's Bill Ferries reports all these moves raise the risk 0:01:04.040 --> 0:01:07.119 of ties between the US and China getting worse. After 0:01:07.200 --> 0:01:09.679 President Trump hinted last week that a trade deal with 0:01:09.800 --> 0:01:11.000 China may be possible. 0:01:11.600 --> 0:01:15.520 Meantime, Nathan, the president continues to put government workers on notice. 0:01:15.640 --> 0:01:18.600 Over the weekend, the Trump administration told at least sixteen 0:01:18.680 --> 0:01:22.600 hundred staffers at the US Agency for International Development they 0:01:22.600 --> 0:01:25.360 were being fired. All but a fraction of the rest 0:01:25.400 --> 0:01:28.679 are placed on leave, and Elon Musk's Department of Government 0:01:28.720 --> 0:01:32.000 Efficiency sent emails to more than two million federal workers 0:01:32.040 --> 0:01:34.480 asking them to report what they did last week or 0:01:34.560 --> 0:01:38.200 risk being fired. Multiple agencies, including the Pentagon and the 0:01:38.280 --> 0:01:41.360 Justice Department, are telling their employees to ignore the email 0:01:41.400 --> 0:01:45.080 for now. Republican Congressman Mike Lawler defended the Doge move 0:01:45.160 --> 0:01:48.920 on EBC's This Week, As heard on Bloomberg Radio, a. 0:01:48.880 --> 0:01:51.920 New administration is always going to do a review and 0:01:52.040 --> 0:01:56.720 try to find efficiencies across the board. When you're staring 0:01:56.760 --> 0:02:01.360 down thirty six trillion dollars in debt and counting, you know, 0:02:01.520 --> 0:02:03.080 obviously something has. 0:02:02.920 --> 0:02:06.440 To give be Fellow Republican Senator John Curtis has some 0:02:06.520 --> 0:02:07.800 advice for Elon Musk. 0:02:08.280 --> 0:02:11.200 Please put a dose of compassion in this. These are 0:02:11.200 --> 0:02:13.880 real people, these are real lives, these are mortgages. 0:02:14.680 --> 0:02:17.360 It's a false narrative to say we have to cut 0:02:17.400 --> 0:02:18.000 and you have to. 0:02:17.960 --> 0:02:21.440 Be cruel Senator Curtis appeared on CBS's Face the Nation, 0:02:21.560 --> 0:02:24.440 which also airs each Sunday on Bloomberg Radio. 0:02:24.639 --> 0:02:28.280 Well, Karen, Now, let's turn to politics overseas, particularly in Germany, 0:02:28.320 --> 0:02:31.880 where conservative leader Friedrich Meritz has emerged as the winner 0:02:32.080 --> 0:02:36.320 in Sunday's election. Preliminary results show Meritz's Center right CDU 0:02:36.480 --> 0:02:39.800 CSU alliance one almost twenty nine percent of the vote. 0:02:39.919 --> 0:02:42.200 Merritz says he will form a new government in less 0:02:42.240 --> 0:02:42.919 than two months. 0:02:43.800 --> 0:02:49.680 D the CDU and the CSU the Union. We have 0:02:49.800 --> 0:02:54.400 won the twenty twenty five federal election. The world out 0:02:54.440 --> 0:02:56.720 there will not wait for us, and it will not 0:02:56.880 --> 0:03:00.360 wait for lengthy coalition talks and negotiations either. 0:03:01.360 --> 0:03:03.840 I mean Friedrich Mertz now has to build that coalition, 0:03:03.880 --> 0:03:07.000 which typically takes weeks, if not months. His most likely 0:03:07.080 --> 0:03:11.120 option is the SPD party of outgoing Chancellor oll Off Schultz, 0:03:11.360 --> 0:03:14.799 which saw its worst performance since World War Two, falling 0:03:14.800 --> 0:03:15.680 to third place. 0:03:16.360 --> 0:03:16.800 Well Nathan. 0:03:16.840 --> 0:03:19.760 A dozen leaders from Europe and Canada are visiting Ukraine's 0:03:19.760 --> 0:03:23.040 capital to mark the third anniversary of Russia's invasion. The 0:03:23.080 --> 0:03:27.640 meeting to discuss security guarantees comes after President Vladimir Zelenski 0:03:27.720 --> 0:03:30.000 said he would be ready to step down if it's 0:03:30.000 --> 0:03:31.760 secured piece for his country. 0:03:32.120 --> 0:03:35.800 YESLKRENI give to achieve piece. You really need me to 0:03:35.840 --> 0:03:37.920 give up my post. I'm ready. 0:03:38.160 --> 0:03:41.040 I can trade it for NATO if there are such conditions. 0:03:41.720 --> 0:03:45.520 Ukrainian President Zelenski speaking there through an interpreter. Meanwhile, French 0:03:45.520 --> 0:03:49.600 President Emmanuel Macron and uk Prime Minister Keir Starmer will 0:03:49.600 --> 0:03:51.840 meet with President Trump this week as they try to 0:03:51.920 --> 0:03:55.440 clinch a European role in the ongoing talks between Washington 0:03:55.480 --> 0:03:59.280 and Moscow on ending Russia's war with Ukraine, and as. 0:03:59.160 --> 0:04:02.680 The war continues Karen, two of Trump's top advisors, Defense 0:04:02.720 --> 0:04:06.480 Secretary Pete Hegseth and National Security Advisor Mike Waltz, are 0:04:06.520 --> 0:04:11.040 declining to describe Russia as the aggressor. Here's Defense Secretary Hegseth. 0:04:11.440 --> 0:04:13.000 My question is does. 0:04:12.760 --> 0:04:16.360 All the finger pointing and par clutching make peace more likely? 0:04:16.520 --> 0:04:19.559 That's the enduring question. The President is asking. He wants peace, 0:04:19.720 --> 0:04:21.800 and if that's the case, you've got to stare down 0:04:21.800 --> 0:04:24.599 the Russians in Vladimir Putin and who they've chosen to 0:04:24.640 --> 0:04:30.000 negotiate and have earnest conversations about difficult things about security guarantees, 0:04:30.720 --> 0:04:34.120 about twenty fourteen borders, what those will look like about 0:04:34.200 --> 0:04:38.600 NATO member, same thing with Ukraine, constructively and productively. So 0:04:38.680 --> 0:04:41.600 standing here and saying you're good, you're bad, You're a dictator, 0:04:41.640 --> 0:04:42.520 you're not a dictator. 0:04:42.720 --> 0:04:45.560 You invaded, you didn't. It's not useful, it's not productive. 0:04:45.720 --> 0:04:49.120 Defense Secretary Pete Hegseth made those comments on Fox News Sunday, 0:04:49.160 --> 0:04:51.880 which can be heard Sundays on Bloomberg Radio. 0:04:52.400 --> 0:04:55.239 Let's turn to the markets now, Nathan Futures. They're moving 0:04:55.360 --> 0:04:57.640 higher as you begin a new trading week. The biggest 0:04:57.640 --> 0:05:00.680 potential market moving event comes on way Wednesday, and that's 0:05:00.720 --> 0:05:04.560 when Ai Darling in Vidia reports earnings. Cameron Dawson, as 0:05:04.640 --> 0:05:07.640 chief investment officer at New Edge Wealth, there is. 0:05:07.640 --> 0:05:10.520 A lot of writing on in Nvidia being able to 0:05:10.680 --> 0:05:15.320 deliver upside to the earning investments, to effectively call markets 0:05:15.360 --> 0:05:18.960 to say nothing to see here. We still have very strong. 0:05:18.720 --> 0:05:20.000 Demand, which just. 0:05:20.000 --> 0:05:23.479 Means that if there's even a sliver of slight weakness 0:05:23.560 --> 0:05:26.919 or a sliver of coming in under the expectations, it 0:05:27.040 --> 0:05:31.279 certainly raises the potential for further downside volatility within Nvidia. 0:05:31.760 --> 0:05:35.640 New Edge wealthy chief investment Officer Cameron Dawson, and VIDIA 0:05:35.720 --> 0:05:38.400 has more than tripled since October twenty twenty three to 0:05:38.440 --> 0:05:41.760 become a three point three trillion dollar behemoth. The rally 0:05:41.760 --> 0:05:43.719 has turned it into the second biggest member of the 0:05:43.839 --> 0:05:45.280 S and P five hundred. 0:05:45.080 --> 0:05:45.520 Well, Karen. 0:05:45.520 --> 0:05:47.760 Over the weekend, we got earnings from another behemoth, Warren 0:05:47.760 --> 0:05:52.880 Buffett's Berkshire Hathaway. Operating earning surged seventy one percent in 0:05:52.920 --> 0:05:55.719 the fourth quarter, and Buffett's cash hoard grew for the 0:05:55.760 --> 0:05:58.240 tenth quarter in a row to a record three hundred 0:05:58.279 --> 0:06:02.080 and thirty four billion dollars. The billionaire continues to refrain 0:06:02.120 --> 0:06:05.520 from major stock transactions. In the fourth quarter, Berkshire was 0:06:05.520 --> 0:06:08.320 in that cellar of six point seven billion dollars worth 0:06:08.360 --> 0:06:08.840 of shares. 0:06:09.240 --> 0:06:11.560 Well, Nathan, We're getting the tally on how much New 0:06:11.640 --> 0:06:15.200 York City congestion pricing is taking in even as its 0:06:15.279 --> 0:06:18.000 future remains in doubt, and we get the latest with 0:06:18.040 --> 0:06:19.320 the Bloomberg's John Tucker. 0:06:19.400 --> 0:06:20.680 John, good morning, and good. 0:06:20.560 --> 0:06:24.360 Morning, Karen. The Metropolitan Transportation Authority, which manages the city's 0:06:24.400 --> 0:06:28.040 transit networks, as New York's first in the nation, congestion 0:06:28.200 --> 0:06:31.680 pricing brought in forty eight point six million dollars in 0:06:31.760 --> 0:06:36.080 its first month of operation and the ubiquitous totaling gantries. 0:06:36.120 --> 0:06:40.159 They're going to continue operating despite President Trump's announcement He's 0:06:40.200 --> 0:06:42.480 going to kill it. With that promise from Trump has 0:06:42.560 --> 0:06:45.160 left Governor Cathy Hochel spoiling for a fight. 0:06:45.800 --> 0:06:48.440 With a tweet he claims that he is the king 0:06:48.880 --> 0:06:51.240 and therefore he has the power to destroy it. 0:06:51.600 --> 0:06:54.359 Hockel was on Face the Nation heard on Bloomberg Radio. 0:06:54.480 --> 0:06:57.040 She met with the President Friday at the White House. 0:06:57.560 --> 0:07:00.719 She suggested that meeting went nowhere. The governor and the 0:07:00.800 --> 0:07:04.000 MTA are suing the Trump administration to keep congestion tolls 0:07:04.000 --> 0:07:07.520 in place. The money raised is intended for subway improvements. 0:07:07.680 --> 0:07:11.880 I'm John Tucker Bloomberg Radio. 0:07:12.520 --> 0:07:14.000 It is time now for a look at some of 0:07:14.000 --> 0:07:16.480 their stories making news in New York and around the world, 0:07:16.560 --> 0:07:19.280 and for that we're joined by Bloomberg's Michael Barr. Michael, 0:07:19.280 --> 0:07:20.120 Good Morning. 0:07:19.920 --> 0:07:23.000 Good morning, Karen. The Vatican says Pope Francis remains in 0:07:23.040 --> 0:07:27.640 critical condition and blood tests show early kidney failure. Doctors 0:07:27.680 --> 0:07:30.840 also say the Pope past chronic underlying lung conditions but 0:07:30.880 --> 0:07:33.480 the Holy See Press Office says he is alert and 0:07:33.600 --> 0:07:37.120 well oriented. He even participated in a mass at the 0:07:37.160 --> 0:07:41.840 hospital at a small chapel. Meanwhile, religious leaders, including Archbishop 0:07:41.880 --> 0:07:45.240 of New York Cardinal Timothy Dolan, offered their thoughts and 0:07:45.320 --> 0:07:49.000 prayers during the gatherings of the faithful yesterday. So our 0:07:49.040 --> 0:07:52.760 Holy Father Pope Francis is in very, very fragile health 0:07:53.440 --> 0:07:56.840 and probably close to death. Pope Francis, who is eighty eight, 0:07:56.920 --> 0:08:00.320 remains on oxygen support. New York City Police say they 0:08:00.320 --> 0:08:03.080 have recovered victims from a deadly boat accident on the 0:08:03.120 --> 0:08:06.800 outer edge of New York Harbor. Authority say the boat capsize, 0:08:06.840 --> 0:08:10.640 leaving three people dead, one missing, and two others injured. 0:08:10.960 --> 0:08:15.720 One is in critical condition. Alicia Adamas found out her father, Cecilio, 0:08:16.000 --> 0:08:16.840 did not survive. 0:08:17.160 --> 0:08:19.320 He's that man and everybody will remember him as that 0:08:19.480 --> 0:08:22.960 man because he always risks his life trying to help 0:08:23.000 --> 0:08:23.520 other people. 0:08:24.120 --> 0:08:27.360 Alicia Adamas is waiting for the Coastguard and the New 0:08:27.440 --> 0:08:29.600 York Police Department to find out what caused the boat 0:08:29.600 --> 0:08:32.800 to sink. The sister in law of Israeli hostage eight 0:08:32.920 --> 0:08:35.839 On Horn is urging the government to negotiate the release 0:08:35.880 --> 0:08:40.240 of all the remaining Hamas held captives. Dalia Kussner is 0:08:40.440 --> 0:08:43.640 Ayton is not expected to be released during the first 0:08:43.679 --> 0:08:44.920 phase of the ceasefire. 0:08:45.679 --> 0:08:50.839 We hope and need, and pray and beg to continue 0:08:50.840 --> 0:08:54.920 this dynamic of releasing more and more and more hostages. 0:08:55.160 --> 0:08:57.720 Talks on the second phase have yet to begin and 0:08:57.800 --> 0:09:02.000 are likely to be harder. The Papal Thriller Conclave won 0:09:02.120 --> 0:09:05.800 Best Ensemble at last night Screen Actors Guild Awards. Ray 0:09:05.840 --> 0:09:08.960 Fines accepted the award on behalf. It made a lighthearted 0:09:08.960 --> 0:09:11.000 moment referencing the plot of the film. 0:09:11.320 --> 0:09:15.560 I've not been elected to speak, I've been designated to 0:09:15.679 --> 0:09:18.960 speak on behalf of our Conclave. 0:09:19.520 --> 0:09:22.760 The drama is up for eight Academy Awards. The Oscar 0:09:23.000 --> 0:09:26.319 is set to be handed out next Sunday. Timothy Charalamaye 0:09:26.360 --> 0:09:29.679 won Best Male Actor. To Me Moore won Best Actress. 0:09:29.840 --> 0:09:32.160 Global News twenty four Hours a Day and Whenever you 0:09:32.200 --> 0:09:34.320 want it with the Bloomberg News Now, I'm Michael Barne. 0:09:34.360 --> 0:09:35.440 This is Bloomberg Caroen. 0:09:35.640 --> 0:09:42.760 Sorry, Michael barr thank you time now for the Bloombergy 0:09:42.800 --> 0:09:45.400 Sports update, brought to you by tri State OUTI here's 0:09:45.480 --> 0:09:47.359 John Stash hour, John, Good morning. 0:09:47.160 --> 0:09:49.079 Good morning. Hereing three best teams in the NBA, in 0:09:49.160 --> 0:09:52.720 no particular order. Cleveland, Oklahoma City and Boston Nicks have 0:09:52.760 --> 0:09:55.680 played seven games against those teams that are all one seven, 0:09:55.720 --> 0:09:57.800 all but one of the losses by double digits. If 0:09:57.800 --> 0:10:00.840 they're getting blown out by the calv of the Celtics 0:10:01.040 --> 0:10:03.200 one eighteen, one oh five, they are now nineteen in 0:10:03.240 --> 0:10:05.760 the first quarter, later filled by twenty seven did cut 0:10:05.760 --> 0:10:06.520 the deficit to six. 0:10:06.559 --> 0:10:07.480 We got no closer. 0:10:07.720 --> 0:10:10.440 Jason Tatum led the self twenty five points and assists, 0:10:10.440 --> 0:10:12.040 shy of a triple double for the k Next, Coly 0:10:12.080 --> 0:10:16.199 Anthony Towns twenty four points, eighteen rebounds. Cavs and Thunder 0:10:16.280 --> 0:10:19.160 both won. Cleveland leads the East at forty seven and 0:10:19.240 --> 0:10:22.160 ten and Okay Seeley's the West had forty six and ten. 0:10:22.200 --> 0:10:24.080 The Rangers came out of the break with that eight 0:10:24.120 --> 0:10:26.880 to two loss in Buffalo. They went to Pittsburgh got 0:10:26.880 --> 0:10:29.400 a much needed five to three win. Adam Fox snapped 0:10:29.440 --> 0:10:31.480 a tie with eight and half minutes to go. Devils 0:10:31.520 --> 0:10:34.480 won five nothing at Nashville. Islanders lost to Dallas four 0:10:34.520 --> 0:10:37.440 to three. In Washington's seven to three rounf over Edmonton, 0:10:37.520 --> 0:10:40.560 the hat trick for Alex Ovechka. Now eight hundred and 0:10:40.640 --> 0:10:44.000 eighty two career goals, he needs thirteen more to break 0:10:44.040 --> 0:10:47.480 Wayne Gretzky's record. This story book season for Saint John's 0:10:47.520 --> 0:10:50.960 continues a second victory over a two time defending Nashville 0:10:51.040 --> 0:10:54.559 champion in Yukon and eighteen point halftime lead in eighty 0:10:54.640 --> 0:10:57.160 nine seventy five win at the Garden. All five Saint 0:10:57.240 --> 0:10:58.760 john starters were in double figures. 0:10:59.240 --> 0:11:00.000 R Kochrik for two. 0:11:00.040 --> 0:11:02.840 You know, tobally delighted, great Garden crowd. 0:11:04.240 --> 0:11:06.320 Hopefully we'll sell out on a seat in the hall. 0:11:06.720 --> 0:11:09.679 We got three games left. We want this Big East. 0:11:09.520 --> 0:11:13.160 Crowd badly, not only for the players but for the 0:11:13.240 --> 0:11:16.720 fans who came back like I never expected. 0:11:16.760 --> 0:11:18.800 So we're very excited about being in the hunt that. 0:11:18.840 --> 0:11:21.920 Big East crown first in almost forty years, nearly assured. 0:11:21.920 --> 0:11:24.160 Now Saint John's has fifteen Big East wins. No one 0:11:24.160 --> 0:11:26.480 else has more than twelve. Rutgers gets to five hundred 0:11:26.800 --> 0:11:29.640 ninety five eighty five over usc The freshman Dylan Harper 0:11:29.679 --> 0:11:33.880 twenty five points, nine assists, sixteals in Florida, Alex Bregman's 0:11:33.880 --> 0:11:35.679 first time wearing a red Sox uniform. 0:11:35.679 --> 0:11:36.600 He had three hits in blue. 0:11:36.600 --> 0:11:39.359 The two on Homer John Stashawa, Bloomberg Sports. 0:11:39.160 --> 0:11:39.840 Can maybe. 0:11:42.360 --> 0:11:46.480 Coast to coast on Bloomberg Radio nationwide on Serious Exam 0:11:46.640 --> 0:11:49.480 and around the world on Bloomberg dot Com and the 0:11:49.520 --> 0:11:52.600 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:52.760 --> 0:11:55.120 Good morning. I'm Nathan Hagrin. It is a new morning 0:11:55.240 --> 0:11:56.000 in Germany. 0:11:56.080 --> 0:11:59.560 Conservative leader Friedrich Meritz has emerged the winner in this 0:11:59.600 --> 0:12:03.240 week's national elections, handing all off Schultz and his center 0:12:03.360 --> 0:12:07.360 left Social Democrats their worst defeat since World War Two, 0:12:07.520 --> 0:12:10.680 and now Meritz is promising to move quickly to form 0:12:10.720 --> 0:12:11.480 a new government. 0:12:12.040 --> 0:12:14.480 The world out there will not wait for us, and 0:12:14.480 --> 0:12:18.560 it will not wait for lengthy coalition talks and negotiations either. 0:12:18.840 --> 0:12:22.080 Conservative Friedrich Merritt spoke through an interpreter following the election 0:12:22.280 --> 0:12:25.200 win for more. We are joined from Berlin by Bloomberg 0:12:25.240 --> 0:12:28.960 Daybreak Europe anchor Stephen Carroll. Stephen, good morning. What is 0:12:29.040 --> 0:12:32.880 the difficulty ahead for Friedrich Mehertz to form this coalition? 0:12:33.040 --> 0:12:36.840 How significant a shift is this from the Social Democrats 0:12:37.080 --> 0:12:38.600 to this conservative block? 0:12:38.679 --> 0:12:40.160 Good morning, good morning. 0:12:40.240 --> 0:12:42.560 Yeah, perhaps not a shift that far as it's likely 0:12:42.600 --> 0:12:45.080 to be the Social Democrats that Friedrich Martz ends up 0:12:45.120 --> 0:12:48.040 going into government with. But it is a shift from 0:12:48.200 --> 0:12:51.800 the outgoing government, which were largely rejected by voters. The 0:12:51.840 --> 0:12:54.360 three parties combined that made up the outgoing government in 0:12:54.400 --> 0:12:57.640 Germany one just a third of the vote. The leaders 0:12:57.640 --> 0:13:00.200 of all of those parties, it now seems we'll be 0:13:00.280 --> 0:13:03.040 leaving frontline politics. We've just had an announcement from the 0:13:03.040 --> 0:13:05.760 Green Party leader Robert Habok that he doesn't see himself 0:13:05.880 --> 0:13:08.319 holding a role in the future leadership of that party. 0:13:08.559 --> 0:13:10.720 So it falls too if you look at the parliamentary 0:13:10.760 --> 0:13:15.199 arithmetic to the SPD and the CDUCSU alliance that will 0:13:15.320 --> 0:13:20.240 form that government as well. Voters opting to support Frederick 0:13:20.280 --> 0:13:23.760 Mertz's harder line on immigration, for example, we had that 0:13:24.080 --> 0:13:26.520 moment during the election campaign where he put forward a 0:13:26.559 --> 0:13:31.800 motion to Parliament to titan some border controls and controversially 0:13:31.840 --> 0:13:34.280 secure the support of the far right AfD to get 0:13:34.280 --> 0:13:38.400 that motion passed in one instance in parliament. This is 0:13:38.600 --> 0:13:42.120 going to be a shift towards conservative politics in Germany. 0:13:42.160 --> 0:13:44.480 But these are two parties that have done business in 0:13:44.520 --> 0:13:47.280 the past. They've been in coalition before. We know that 0:13:47.320 --> 0:13:50.040 they can work together. They have difference as opinion on 0:13:50.120 --> 0:13:53.840 things like tax and spending, but on issues like, for example, 0:13:53.920 --> 0:13:57.360 support for Ukraine, they are largely aligned. This is a 0:13:57.480 --> 0:14:01.120 victory for the center, although with some notably large votes, 0:14:01.160 --> 0:14:02.400 particularly for the far right. 0:14:02.760 --> 0:14:05.680 Well, let's talk about that vote for the far right. 0:14:05.760 --> 0:14:09.560 Now in second place the Alternative for Germany Party, a 0:14:09.600 --> 0:14:12.880 party that Vice President jd Vance had met with just 0:14:12.960 --> 0:14:14.080 before this election. 0:14:14.200 --> 0:14:17.280 Where does this position the far right now in Germany? 0:14:17.640 --> 0:14:20.160 Well, if you listen to their chancellor candidate Alice Fidel, 0:14:20.480 --> 0:14:23.760 she says it positions them to overtake the CDU at 0:14:23.760 --> 0:14:27.840 the next election. This is a massive shift, a watershed 0:14:27.880 --> 0:14:30.800 moment in German politics, that a far right party could 0:14:30.840 --> 0:14:35.120 score one in five votes, and that's on. Don't forget 0:14:35.280 --> 0:14:39.240 at the turnout. That's the highest since nineteen ninety. Eighty 0:14:39.320 --> 0:14:43.080 four percent of eligible voters turned out in Western democracy, 0:14:43.120 --> 0:14:46.360 I think almost anywhere, that's an extremely high number. So 0:14:46.640 --> 0:14:49.800 the idea of getting a very mobilized electorate and that 0:14:50.000 --> 0:14:52.360 chair of the vote tells you the space that the 0:14:52.400 --> 0:14:55.520 AfD have created for themselves in German politics. I was 0:14:55.560 --> 0:14:58.720 at their election night event here in Berlin last night. 0:14:59.000 --> 0:15:01.520 There was sparkle wine and beer. On arrival there was 0:15:01.560 --> 0:15:04.360 a barbecue running outside. It was a party. Long before 0:15:04.440 --> 0:15:06.760 the exit polls had been announced, the poles running up 0:15:06.800 --> 0:15:09.680 to this election, which largely proved correct, had predicted they 0:15:09.680 --> 0:15:13.840 would see this significant increase in their support. They already 0:15:13.840 --> 0:15:16.480 have had an influence on the campaign. They're part of 0:15:16.480 --> 0:15:19.480 the reason that we saw Frederick Martz from the Conservative 0:15:19.480 --> 0:15:24.600 Alliance talking more about migration. Alice Videl hopes to continue 0:15:24.600 --> 0:15:28.080 that influence in a leading party in opposition. Notable that 0:15:28.120 --> 0:15:30.880 the firewall, as it's known in German politics that keeps 0:15:30.880 --> 0:15:33.320 the far out out of power, has held. No party 0:15:33.360 --> 0:15:35.960 has said they will work with the AfD, but it 0:15:36.000 --> 0:15:39.680 will leave them with this leading opposition position in Parliament. 0:15:39.960 --> 0:15:43.360 They will be the main voice criticizing the government and 0:15:43.400 --> 0:15:47.360 they will be particularly targeting the CDU Conservative Alliance to 0:15:47.400 --> 0:15:49.440 see if they can win over some of their voters 0:15:49.440 --> 0:15:52.960 by putting extra pressure on issues like migration, which polling 0:15:53.000 --> 0:15:55.000 tells us was one of the most important issues for 0:15:55.080 --> 0:15:56.360 voters running into this election. 0:15:56.560 --> 0:15:57.960 We have just thirty seconds left. 0:15:57.960 --> 0:16:00.600 Stephen, what does this election result mean for support for 0:16:00.760 --> 0:16:03.280 Ukraine now with the war entering its fourth year. 0:16:03.800 --> 0:16:06.480 These are two parties who do support Ukraine. This is 0:16:06.520 --> 0:16:09.040 going to bolster that position from the party. The question, though, 0:16:09.080 --> 0:16:11.200 will come down to money. Where are they going to 0:16:11.200 --> 0:16:13.680 find the money for increased defense spending as we now 0:16:13.720 --> 0:16:15.720 know they need to make up what the US is 0:16:15.760 --> 0:16:19.560 planning to remove. The parties do support this, although not 0:16:19.640 --> 0:16:21.760 strictly on the same grounds. There will be a key 0:16:21.800 --> 0:16:24.480 matter to be negotiated through that as well. Whether or 0:16:24.520 --> 0:16:27.200 not they'll go as far as supporting joint defense spending 0:16:27.240 --> 0:16:30.520 in the EU not clear at this point. Questions about 0:16:30.520 --> 0:16:33.160 Germany loosening the part string still very central in those 0:16:33.200 --> 0:16:34.440 coalition negotiations. 0:16:34.720 --> 0:16:38.160 This is Bloomberg Daybreak, your morning podcast on the stories 0:16:38.240 --> 0:16:41.280 making news from Wall Street to Washington and beyond. 0:16:41.520 --> 0:16:43.920 Look for us on your podcast feed by six am 0:16:43.960 --> 0:16:47.360 Eastern each morning, on Apple, Spotify, or manywhere else you listen. 0:16:47.560 --> 0:16:50.400 You can also listen live each morning starting at five 0:16:50.440 --> 0:16:53.160 am Wall Street Time on Bloomberg eleven three to zero 0:16:53.160 --> 0:16:56.080 in New York, Bloomberg in ninety nine to one in Washington, 0:16:56.120 --> 0:16:59.960 Bloomberg ninety two nine in Boston, and nationwide on Sirius 0:17:00.280 --> 0:17:02.040 XM Channel one twenty one. 0:17:02.240 --> 0:17:04.960 Plus Listen coast to coast on the Bloomberg Business App 0:17:05.000 --> 0:17:07.760 now with Apple CarPlay and Android auto interfaces. 0:17:08.040 --> 0:17:10.760 And don't forget to subscribe to Bloomberg News Now. 0:17:10.920 --> 0:17:11.920 It's the latest. 0:17:11.560 --> 0:17:14.359 News whenever you want it in five minutes or less. 0:17:14.600 --> 0:17:17.680 Search Bloomberg News Now on your favorite podcast platform to 0:17:17.720 --> 0:17:21.240 stay informed all day long. I'm Karen Moscow. 0:17:21.000 --> 0:17:22.000 And I'm Nathan Hager. 0:17:22.119 --> 0:17:24.199 Join us again tomorrow morning for all the news you 0:17:24.240 --> 0:17:26.800 need to start your day right here on Bloomberg Day. 0:17:26.840 --> 0:17:28.720 Ray