Episode summary
NATO Leaders Tout Defense Spending; US Knocked Out of World Cup | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
NATO leaders used the summit in Turkey to showcase new defense commitments and signal to President Trump that allies are moving toward his demand for 5% of GDP in military spending. The alliance is highlighting billions of dollars in procurement, including radar-detection systems and counter-drone capabilities, while officials argue that Europe and Canada have already increased spending by more than $200 billion in recent years.
The discussion also focused on whether Trump can keep the alliance aligned on Ukraine and Turkey. One guest said the summit is partly about making sure the U.S. stays engaged, while also acknowledging that some members, including Spain, remain resistant to higher spending. Turkey’s role was described as unusually central, with the president expected to meet with Recep Tayyip Erdogan and potentially discuss progress on Turkey’s long-stalled return to the F-35 program.
Elsewhere, the broadcast covered the end of Team USA’s World Cup run after a 4-1 loss to Belgium, the continuing fallout over Graham Platner’s Senate campaign in Maine, and a sharp selloff in tech stocks after strong year-to-date gains. The show also noted flood damage in New Jersey, heat-related deaths in New York, and the rising death toll from Venezuela’s earthquakes.
Key takeaways
- NATO allies are presenting new defense deals as proof they are moving toward 5% of GDP in military spending, according to the host and a guest.
- A guest said European allies and Canada have already ramped up defense spending by more than $200 billion in the last couple of years.
- Turkey is being cast as a bridge between the U.S. and Europe, with the president’s meeting with Erdogan carrying possible F-35 implications.
- Team USA’s World Cup ended with a 4-1 loss to Belgium, and the loss marked another exit before the quarterfinals.
- Tech stocks fell sharply despite strong runs this year, as one analyst said the market may have already priced in much of the optimism.
Notable quotes
“They committed to invest 5% of GDP in defense by 2035. And now just one year later, we already already see transformational progress here in Ankara”
“I think so. I think one of the main goals that we have we are seeing at the summit is that making sure the US stays engaged”
“European allies and Canada are ramping up their spending by more than $200 billion in the last couple of years”
“The quarterfinals didn't happen. Belgium won decisively 4 to1 to move on to the quarterfinals”
How the episode opens
Bloomberg Audio Studios podcasts radio news. — Good morning. I'm Karen Moscow and I'm Alexis Christopherus. Here are the stories we're following today. — Alexis, thank you. Well, President Trump and NATO leaders are meeting in Turkey for a summit focused on the alliance's future. The two-day gathering is an anchor at Turkey, and that's where Bloomberg's chief Europe correspondent Oliver Crook brings us up to speed on the very latest.
Now, this is seen as a sort of follow-up meeting to the really historic NATO meeting last year in the Netherlands, the one in which all NATO members effectively pledged to pay 5% of their GDP through military and defense spending. And that was really seen as a real unmititigated success of Trump foreign policy. It's something that really nobody in Europe has really fought back against too much.
There have been a couple instances for Spain for example, but again this was sort of one of the things that you could really notch down in the win column for President Trump. In the 12 months that have ensued since then there have been some foreign policy actions which you know are not so undisputably a success namely the war in Iran. Obviously that has caused a great wedge with a number of uh uh European allies.
And Bloomberg's Oliver Crook says NATO will showcase new military projects worth billions in an effort to convince President Trump that allies are boosting defense spending. And Karen, the NATO summit comes as tensions are rising in the Middle East. A laden liqufied natural gas carrier was hit by a projectile near the Omani coast as it exited the straight of Hormuz.
Bloomberg managing editor Paul Wallace has more from the Middle East. Iran has said frequently is essentially said that it doesn't want ships going on that route that it wants them to take its own approved route uh you know further to the north and closer to its own coast and that no ships must go through without its permission.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- nato defense spending
- counter-drone capabilities
- us senate candidate allegations
- world cup exit belgium
- fifa player eligibility ban
Companies and tickers mentioned
- BA
- Boeing
- Saab AB
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Daybreak: US Edition
-
Nvidia Faces Post-Huang Reckoning, Microsoft Races to Fix Outage | Bloomberg Daybreak: US Edition -
Daybreak Weekend: Nvidia Earnings, UK Labour Market, APEC Summit | Bloomberg Daybreak: US Edition -
Nvidia Weighs Succession Plans; Congress Preparing to Subpoena Jensen Huang | Bloomberg... -
GOP Thwarts Hegseth Impeachment; CoreWeave Quiets Doubts | Bloomberg Daybreak: US Edition -
FBI Investigates Nvidia CEO, Anthropic IPO Snafu | Bloomberg Daybreak: US Edition -
Nvidia CEO Affair Sparks Probe, Trump Admits Policy Mistake | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
