Russia turns on the Baltics. And: how insurgents are impeding Ebola rescue efforts

Summary

The Globalist – May 21, 2026

Episode Title: Russia Turns on the Baltics. And: How Insurgents are Impeding Ebola Rescue Efforts
Host: Chris Chermak
Podcast: The Globalist (Monocle)
Main Themes: Baltic insecurity amid Russia-Ukraine war spillover; political fallout in Latvia; drone incidents and electronic warfare; Ebola outbreak response hindered by armed conflict in DRC and Uganda; global business, technology, and culture news roundup.

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Episode Overview

This episode delves into the increasing tension and instability in the Baltic region as Russia’s war in Ukraine spills over into NATO territory, raising fresh security concerns and prompting political upheaval in Latvia. The discussion also turns to the devastating Ebola outbreak in the Democratic Republic of Congo and Uganda, where violence and insurgency sharply undermine rescue and containment efforts. Additional segments review major trade deals, quirky news stories, labor developments at Samsung, Asian aviation, and a retail renaissance at Chanel.

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In-Depth Breakdown

1. Russia, Ukraine, and the Baltic Security Dilemma

[01:30–13:37]

Background and Recent Incidents

• Ukrainian drones have strayed into Baltic states with increasing frequency, some shot down by NATO aircraft (notably Romanian F-16s over Estonia).
• Russia accuses Latvia of giving Ukraine launchpad access—claims that Latvia firmly denies.
• The fallout includes the Latvian PM’s resignation, triggered by questions over the government's response to drone incursions and wider public dissatisfaction.

Expert Analysis

• Uges Libertis (Latvian Institute of International Affairs):

  • The Latvian public is anxious over repeated drone incursions—two drones even damaged a fuel tank near the Russian border.
  • There was government infighting: the Defense Minister planned to resign but was fired minutes before his announcement. This led to the collapse of an already unpopular coalition government ([03:58]).
  • Efforts are underway to form a new coalition, with a vote expected soon.
  • "This all has led to quite a fast process of creating a new government." (Uges Libertis, [05:10])
  • The incidents exposed “slight problems” in crisis protocol and public communication: “Armed forces with crisis management center, they are already redoing and replanning those algorithms.” (Uges Libertis, [12:23])

• Petri Birtsov (Monocle, Helsinki):

  • NATO’s decision to shoot down a Ukrainian drone in Estonia was a historic first. The drone was heading toward a populated area.
  • Finland has experienced similar events but usually opts not to shoot down drones.
  • The explanation from Ukraine and NATO: Russian electronic warfare is likely responsible, scrambling drones' directions. “This is straight out of Russia's playbook to create this sort of fear and ambiguity. Who is behind it, you know, blaming the other part?” (Petri Birtsov, [09:00])

The Russian Playbook

• Russia’s aim is to destabilize, sow doubt, and undermine trust in governments and alliances—without direct confrontation.

• Quote: “Their idea is not to attack directly, but probably just to make an impression that you are not trusted, Ukraine is not trusted...you can’t trust your government. NATO is not a trusted organization…the European Union is not behind you.” (Uges Libertis, [11:24])

• Atmosphere on the Ground:

  • Latvians are worried about a potential escalation: “Many people I know, including my wife, have asked me…should it mean that some forceful actions might follow?” (Uges Libertis, [11:03])
  • Despite fears, recent events have led to more robust contingency planning and public awareness.

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2. Ebola Crisis Hampered by Insurgency in Africa

[13:37–21:18]

Context

• A major Ebola outbreak in the DRC and Uganda has killed more than 100 people, with the region’s ongoing conflicts creating immense challenges for healthcare workers.

Field Reporting

• Nicholas Barrio (Wall Street Journal, Kampala):
  • The worst-hit areas are divided between ISIS-linked rebels and Rwandan-backed militias (M23). Humanitarian access is perilous ([14:48]).
  • Goma, the largest city in North Kivu, is under rebel control, and its airport (a key aid hub) is closed ([15:32]).
  • Many infected villages are hard to access, complicating surveillance and response.

The Scope of the Outbreak

• The outbreak likely began in March; the alarm was raised only weeks later, after a significant and rapid rise in deaths ([16:30]).
• “By the time an official confirmation came, cases had surpassed more than 200. So it's really scary.” (Nicholas Barrio, [16:30])

Handling the Crisis

• Some rebels have allowed health teams to send samples for testing, though aid access remains patchwork ([17:36]).
• The World Health Organization is working with UN peacekeepers to airlift essential supplies and urge armed groups to allow medical interventions ([18:32]).

Borders & Regional Impact

• Rwanda has closed many border crossings, which inhibits both disease spread and humanitarian access ([19:42]).
• Uganda has deployed surveillance, although insecurity complicates every step.

Risks and Outlook

• The greatest risk remains in conflict zones: difficult access and major religious gatherings compound fears of further contagion.

• Quote: “The risks are higher inside the DRC…accessibility is very complicated because of insecurity.” (Nicholas Barrio, [20:43])

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3. Key Global Business and Culture Updates

Major News Headlines

[22:10–22:41, 33:18–35:53]

• Iran is reviewing a US proposal to end their conflict.
• The UN General Assembly reaffirmed global climate commitments.
• SpaceX files for a record-breaking $1.75 trillion IPO.
• Germany arrests alleged Chinese spies.

EU–US and UK–Gulf Trade Deals

(with Nina Dos Santos, [22:10–27:47])

• The EU edges forward on an overdue trade deal with the US—still cautious due to Trump’s unpredictability, with clauses allowing for early termination ([25:02]).
• The UK secures a post-Brexit trade deal with Gulf Cooperation Council (GCC) states—a timely PR win for both sides.

Lighter News

• The Chelsea Flower Show features a “Sexy Garden” sponsored by Love Honey, stirring up the event’s traditional reputation with “Aphrodite’s Hothouse”—“lush, fragrant, and just a little bit naughty.” (Nina Dos Santos, [28:51])
• New research shows cows can recognize human faces and even prefer to look at strangers—“It’s not all black and white, put it that way.” (Nina Dos Santos, [33:15])

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4. Samsung Strike Averted in South Korea

[35:53–41:23]

Labor and Business

• Guest: Nemo Kim (Seoul-based journalist)
• Samsung’s unions reached a last-minute deal, suspending a planned 48,000-worker strike.
• The dispute centered on performance bonuses, especially for semiconductor workers, amid massive AI-related profits ([35:53]):
  • “Their annual salary of 100 million won could potentially receive up to 600 million won or US$400,000 in performance bonuses if relevant conditions are met.” (Nemo Kim, [36:50])
• The company’s deal doesn’t guarantee equivalent bonuses across all divisions, reflecting uneven profit gains from semiconductors vs. other sectors.
• The government’s heavy involvement highlights Samsung’s economic importance: its chips underpin national and global supply chains ([38:21]).

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5. PPJ: Franco-Brazilian Musical Fusion

[41:23–47:18]

• Featured Artists: Paola and Pavoa, the duo PPJ
• Their new EP “Joker” blends bossa nova, samba, baile funk, and electronic dance, drawing on personal histories and Franco-Brazilian musical exchange.
• Notable moment: Paola describes reconnecting with her Brazilian roots and infusing those experiences into their multilingual club sound:
  • “I started to play music with a producer in Lille telling all about my searches about this story and I put all my little poems on electronic music because I grew up in north of France…” (Paola, [42:09])

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6. Asian Aviation Update

[48:09–56:17]
With Matt Driscoll (Asian Aviation Magazine)

Singapore Airlines and Industry Trends

• Singapore Airlines is expanding certain routes, but the sector at large is rationalizing due to global instability.
• Singapore Airlines remains invested in Air India but major challenges persist for India’s national carrier.
• Chinese orders for Boeing aircraft are subject to geopolitical optics, with COMAC still reliant on Western components.

Notable Analysis

• On China’s Boeing order:
  • “...it’s very easy. It doesn’t cost any money to say, sure, we’ll order 200 planes and then six months from now say, well, actually Airbus has given us a better deal…” (Matt Driscoll, [53:15])

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7. “Blasy Mania” Fuels Chanel’s Comeback

[56:17–61:15]
With Natalie Theodosi (Monocle Fashion Director)

• Chanel returns to growth in 2025 (up 1.8% to €19.3bn in revenue), after a dip the previous year.
• The surge is partially attributed to new creative director Mathieu Blazy, whose colorful, distinct designs have energized consumers and prompted genuine excitement in boutiques.
• Further growth is expected in 2026 as Blazy’s first collections reach stores and Chanel ramps up investment in retail, notably in the Americas and China.
• Quote: “There was always that one word, joy, around his collections because they’re colorful, they're quite distinct designs.” (Natalie Theodosi, [59:31])

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Notable Quotes & Timestamps

• “The idea of Russia…is not to attack directly, but probably just to make an impression that you are not trusted…you have weak spots. You can’t trust your government.”
  — Uges Libertis, [11:24]

• “This is straight out of Russia’s playbook to create this sort of fear and ambiguity. Who is behind it, you know, blaming the other part?”
  — Petri Birtsov, [09:00]

• “By the time an official confirmation came, cases had surpassed more than 200. So it's really scary.”
  — Nicholas Barrio, [16:30]

• “The AI boom will create labor conflicts as well as corporate profits.”
  — Nemo Kim, [40:14]

• “There was always that one word, joy, around his collections because they’re colorful, they're quite distinct designs.”
  — Natalie Theodosi, [59:31]

• “It’s not all black and white, put it that way.”
  — Nina Dos Santos (on cow studies), [33:15]

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Key Timestamps for Segments

• 01:30 — Discussion of Baltic drone incidents and government collapses
• 03:58 — Uges Libertis on Latvian political turmoil
• 07:25 — Petri Birtsov on drone interceptions in Estonia and Finnish-Baltic contrasts
• 13:37 — Ebola outbreak in DRC/Uganda, with Nicholas Barrio
• 22:10 — Global headlines and newspaper roundup
• 35:53 — Samsung strike averted, detailed by Nemo Kim
• 41:23 — PPJ duo musical interview
• 48:09 — Asian aviation news with Matt Driscoll
• 56:17 — “Blasy Mania” and Chanel’s growth with Natalie Theodosi

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Tone & Style

• Analytical, calm, but urgent—particularly on the security and public health crises.
• Conversational in the newspaper review and cultural segments.
• Culturally broad: mixing hard news, quirky science, and global trends.

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Summary

This multifaceted episode of The Globalist provides crucial updates on European security and political turbulence caused by Russian and Ukrainian tensions spilling into the Baltics. Ground-level perspectives clarify how cyber-war tactics and misinformation fuel instability. In Africa, listeners get a snapshot of the daunting challenges public health workers face amid Ebola’s spread in war-ravaged zones. Rounded out with business, aviation, culture, and even whimsical scientific news, the episode offers a panoramic view of global affairs in one succinct package.

Transcript

[UBS Narrator]

Craft matters in small ways like how a coffee is brewed, and in not so small ways like how your money is cared for. Which is why for 160 years, UBS has elevated banking to a craft, tailoring unique strategies that combine human expertise with the latest technologies, all happening across 24 time zones and and 12 key financial hubs. With you at the heart of it all, UBS advice is our craft.

[Chris Chermack]

You're listening to the Globalist, first broadcast on 21 May 2026 on Monocle Radio. The Globalist in association with U. Live from London, this is the Globalist. I'm Chris Chermak. Coming up, we'll look at the Ebola outbreak in the Democratic Republic of Congo and Uganda. Health authorities being hampered by a long running conflict in the region. Could this allow warring parties to see some sense after that? Romanian F16s downed a drone over Estonia. This was a Ukrainian drone, but it

[Uges Libertis]

wouldn't have been there but for Russia's aggression.

[Chris Chermack]

NATO Secretary General Mark Rutte there detailing something that has happened with increasing frequency in recent weeks. Ukrainian drones in Baltic territory. We'll explain why. We've also got the newspapers and we'll explore how a strike at the South Korean tech giant Samsung has been called off at the 11th hour.

[Paolo or Pavoa (PPJ Duo Member)]

And then with PPJ, we can mix together the Brazilian softness and beauty of Paolo's voice with the club music. It goes really well together.

[Chris Chermack]

The Franco Brazilian duo PPJ there. We'll also get aviation news out of Asia. And finally we'll check in with our fashion director Natalie Theodosi about why Chanel is benefiting from what's being called Blazy Mania. That's all up ahead on the Globelist. Live from London. First, a look at what else is happening in the news. Iran says it is reviewing a new US Proposal it received to end the war between the two countries. The United Nations General assembly has reaffirmed countries responsibility to confront climate change. And SpaceX has filed for an initial public offering targeting a record valuation of $1.75 trillion. Stay tuned to Monaco Radio throughout the day for more on those stories. Now if there was to be an attack by Russia on a NATO country, it would almost certainly be on one of the Baltic nations among NATO's newest members. And those countries most conscious of the threat posed by Russia based on their own histories. Well, this week that threat has felt a little bit closer with fears that the Baltic nations could be drawn further into Russia's war with Ukraine. Stray drones from Ukraine have been shot down over Estonia, forced leaders in Lithuania to take cover while Latvia's prime minister last week resigned over the issue. And Moscow has accused Latvia of planning to allow Ukraine to send drones into Russia from its territory, a charge that Latvia denies. I'm joined for more on all of this from Riga by Uges Libertis, associate researcher at Latvian Institute of International affairs and a journalist at Latvian Radio, and by Monocle's Helsinki correspondent, Petri Birtsov. Uges, I wanted to start with you if you could take us back to last week. Tell us about some of the drone incidents Latvia has faced and why it prompted the prime Minister to resign.

[Uges Libertis]

Yes. Well, at first I would say that for last already two weeks, we are experiencing drone overflights or kind of drone overflights over our territory. And the question has always been how does it come that those drones are being able to travel quite far inside our territory without being shot down. So the discussion was of course about should the armed forces shoot down any kind of drones using most probably quite expensive technologies and ammunition, or should we just inform society about the potential threat. When two of the drones fell down and they hit one of the fuel tanks in one of the towns near the close to the Russian border. That was, I would say, one of the reasons why discussions about the stability of government started. And that was a tricky situation because minister of Defense wanted kind of to resign himself. Just 10 minutes before his announcements, the prime minister announced that she's firing him. So at the end, after different discussions, the government fell. I wouldn't say that this security issue is the only reason why this government fell. It was, I would say, quite unpopular for many years already. It was, it's a coalition partner. When the where the Minister of Defense was coming from, the progressives, they were very unpopular, I would say, outside Riga. And Minister of Defense was widely blamed for inability of Latvian armed forces to defend our country. So this all has led to quite big, quite fast process of creating of new governments. We are now in the process of agreeing of new coalition which will consist of two political parties from the previous government and two political parties from the opposition. Just this morning I got the news that most probably the vote for the new government will be already next Thursday. And well, yeah, this is the kind of very interesting development currently that we

[Chris Chermack]

are experiencing lots of things taking place politically in Latvia and Petri to bring you in on this. I mean, interesting that Uges was describing this dilemma that Latvia has had about how to respond to the drone incursions. Meanwhile, in Estonia, drones have actually been shot down for the first time to Ukrainian drones by Russia, by Romanian rather, F16s.

[Petri Birtsov]

So, yes, that's correct. These were basically Romanian F16s that were stationed in Lithuania and they were scrambled to intercept this drone. The Estonian officials stated that it was basically just the fastest way. I mean, obviously they have NATO aircraft also stationed in Estonia in the Amuri airbase, but they stated it was faster to use the ones from Lithuania. And quite a. Consequential, quite a historic moment in the sense that, that this is the first time that NATO actually shoots down drones in its territory, that it conceives as a threat. And the reason this was given by the Estonian authorities, the reason for shooting down this particular drone was because it was headed into a populated area. Mind you, this is in central Estonia. It was not headed to Tallinn, but it still fell just a few hundred meters from a nearest house. It didn't cause any harm. And it was quite interesting watching Estonian and Finnish tv, you know, they sent journalists to the site and they were able to pick up pieces of this drone that was shot down. But yeah, interesting, interesting reaction by Estonia because we've seen similar developments happen in Finland as well in the past weeks, weeks and months, and Finland has opted not to shoot the drones down.

[Chris Chermack]

So there is this dilemma in Finland as well. And Petri, just to stay with you on this, I mean, Ukraine has said that these drones entering Baltic airspace, striking the Baltic nations is the result of Russian electronic warfare. We heard that a bit from NATO Secretary General Mark Rutte at the top of the show as well. What are the Baltics saying about that?

[Petri Birtsov]

Yeah, this is, this is basically what all the military officials, security officials, politicians from all the Baltic countries and also from Prinoler are saying, because, you know, we are used to, I'm based in Helsinki, we are, you know, we are used to Russian electronic signal interference that affects civilian aircraft, civilian vessels in the Baltic Sea. So it's very likely that that Russian interference, electronic interference is also behind these stray drones. Because let's remember these are, you know, these are very far from Ukraine. They are not sort of, there's not some guy sitting in a bunker and remote controlling them. These are autonomous drones and susceptible to this kind of interference. And, you know, while I cannot state it as a fact, these are just claims made by the authorities. We just have to bear in mind that this is straight out of Russia's playbook to create this sort of fear and ambiguity. Who is behind it, you know, blaming the other part? Because in my opinion, in my, of course, subjective opinion, you know, what would Ukraine stand to benefit from its drones forming a threat to some of its staunchest allies, which are the Baltic countries. So it's the least. It's very likely that Russian interference is

[Chris Chermack]

behind would appear to be in the Russian playbook. And UGIS to bring you in on this, because there's another aspect of the Russian playbook playing out right now, which is these accusations that Latvia was will actually allow Ukrainian drones to strike Russia from within its territory. Latvia has of course, denied this, but just tell us what that feels like for Latvians. Are there fears that this is Russia maybe even laying the groundwork for an attack?

[Uges Libertis]

I have to admit that many people I know, including my wife as well, has asked me about what does it mean? What does it mean that this rhetoric is increasing and should it mean that some forceful actions might follow? I will definitely agree with Petrie that this is one of the playbook elements. And the idea of Russia, they don't need necessarily to make a direct attack. And if you will follow the different incidents around the world where Russia has been involved in, their idea is not to attack directly, but probably just to make an impression that you are not trusted, Ukraine is not trusted. It should not be supported. You have weak spots. You can't trust your government. Your government is unstable. NATO is not trusted organization, European Union is not behind you. So you start to doubt about everything. And that means that in this case you are not capable of doing things. And also this governmental crisis in this case, we have nobody to kind of keep responsible for everything what happens right now. So we are in a big turmoil ourselves. So Russia is using those weak spots and provoking this uncertainty and, and, and everything around it. So it's like we basically do the harm to ourselves, not they are doing to us. And we kind of know this trend for years, but well, the people are human beings and they just really fear for their own security and for safety of their children. And that's only natural that we are, we are, we are afraid at some point. But all these incidents have also showed that we need to be more prepared, that we have to rethink our algorithms of actions, how we warn the society, how we inform them. And we have already discovered that there are some slight problems that has to be changed. And armed forces with crisis management center, they are already redoing and replanning those algorithms. So I think that all these things, they still make us a little bit stronger and more resistant to any further provocations.

[Chris Chermack]

Uges Libertas journalist at Latvia's Radio and Monaco's Helsinki Correspondent Petri Birtsoff, thank you both for joining us very much. This is the Globalist. Now an outbreak of Ebola has been spreading across the Democratic Republic of Congo in the past week, killing more than 100 people, prompting the World Health Organization to declare a global emergency. Now if that weren't bad enough, the outbreak is in a conflict region both in the Congo and in Uganda, where the virus has spread and where Ugandan forces have been battling ISIS militants. So how is the conflict hampering efforts to contain the outbreak? Well, I'm joined now from the Ugandan capital, Kampala by Nicholas Barrio, reporter for the Wall Street Journal's Africa bureau covering East Africa and the Great Lakes region. Nicholas, great to have you on the show. Perhaps we could start with some of the background here because this was such a dangerous part of the world with conflict before Ebola even arrived on the scene.

[Nicholas Barrio]

Yeah, thanks so much for having me over. Yeah, that's really correct because the outbreak is in a very, very rare honor. In one area, the province of Ituri is rebel infested, still under government control, but with a lot of armed groups, including ISIS affiliated fighters. In the other corner, North Kiva and South Kivu are under the control, largely under the control of Rwandan backed militia called M23. So it's really difficult.

[Chris Chermack]

And tell us how then that what you're describing there, the conflict, the different regions controlled by different groups, how has that hampered efforts to contain the outbreak of Ebola?

[Nicholas Barrio]

For starters, in North Tivu province, the largest city which is called Goma, is under the control of rebels. And the main airport is closed. So no aid deliveries can be delivered via Goma airport, which has over there has been a hub for humanitarian deliveries. And in the other part of Ituri, because of the insecurity, aid officials have to think about how to navigate Arab infested highways and dirt roads to enter affected villages. So it's really they're difficult in terms of access for the people who are responding and trying to contain this outbreak.

[Chris Chermack]

It is very difficult. As you describe, are you able to say at this point just how bad the outbreak is and also what we understand now about how it started and where

[Nicholas Barrio]

this is really bad because by the time health officials think that this actually started saturating around March and the alarm was raised around April when the death toll picked up so much, but then the confirmation came in May. So there is a lot of gap between when the infection started saturating and when this was confirmed. So that poses rather a big challenge. In previous outbreaks the cases would be detected when they are still in their dozens this time. By the time an official confirmation came, cases had surpassed more than 200. So it's really scary.

[Chris Chermack]

That is obviously very scary. And is the fact that now this outbreak is spreading, I mean, is that recognized at all by government forces, by the rebels? Because at the end of the day, surely they also have some interest in allowing access to health authorities, granting them access to where needed.

[Nicholas Barrio]

Yeah, that is actually surprisingly, that has happened because in Goma, for instance, the airport is still closed, but the rebel forces are allowing health officials to pick these samples and sending them to a government controlled lab. So that is the small positive of it. But in other areas, because these rebels are so many, the groups are multiple and they are not under a central command. So it's hard to know whether one side has accepted this or this. And so that's the challenge. The groups are multiple and not under one command.

[Chris Chermack]

Well, and what has the World Health Organization said about this? What needs to happen in order to contain the virus? Is there something that the international community can do to try and improve the situation on the ground?

[Nicholas Barrio]

Yeah. Yes. At the moment, the World Health Organization has been relying on peacekeepers, United nations peacekeepers, who are deployed in eastern Congo to airdrop some of these deliveries or actually transport some of things like emergency tents, beds and construction of field hospitals from hubs in Kinshasa, some from Nairobi. So at the moment, the United nations peacekeepers have stepped in and they've also been calling upon these armed groups toned down. So the conflict, in a way, is not at its peak. But the place remains insecure.

[Chris Chermack]

You mentioned there, Kinshasa, Nairobi, involved with hospitals as well. Just tell us about how the neighbors of Uganda and the Democratic Republic of Congo are responding. Are they helping in this situation? But there will also no doubt be worry from the neighbors about the spread of this virus. Is there a prospect of, you know, closing borders? Is that even possible?

[Nicholas Barrio]

Yes. So for the case of Nairobi and the Chinshasa, I think that's where the WHO has staged facilities to bring in this surprise. And then for the neighbors, we have a situation with Rwanda. Rwanda has closed most of the border crossings along its border with Congo to try and prevent movement. But then that also causes another problem whereby it's hard for humanitarian workers to move in and out. And that Congolese officials say will inevitably slow down response. And for the part of the border with Uganda, they've deployed a lot of surveillance teams, health teams, but they also have to be guarded by troops because of the insecurity.

[Chris Chermack]

Just finally then, Nicholas, I mean what does all this mean for where you are and how quickly Ebola could spread? I mean where can it be stopped if not easily in these conflict regions?

[Nicholas Barrio]

I think the biggest risk here is in the conflict stricken areas of eastern Congo because of what I mentioned earlier. Accessibility is very complicated because of insecurity.

[Matt Driscoll]

Yes.

[Nicholas Barrio]

There is also a lot of cross border movements between Uganda and Congo. This hasn't been restricted yet, although some functions. There was a very large impending religious brigade ceremony in Uganda. This has been put on hold. So the risks are there, but I think the risks are higher.

[Chris Chermack]

Inside the drsc, Nicolas Barrio, Kampala based reporter for the Wall Street Journal's Africa Bureau. Thank you very much for joining us today. This is the globalist.

[UBS Narrator]

Craft is a matter of perspective, a unique outlook, an obsessive attention to detail. With UBS's Chief Investment Office Houseview, we're focused on identifying the latest investment opportunities and market risks to help you achieve your financial goals. So you get the big picture broken down into thought provoking insights delivered daily and curated by over 200 globally connected locally active analysts. UBS banking is our craft.

[Chris Chermack]

Well, let's continue with today's newspapers now. Joining me for that right here in the studio is Nina Dos Santos, international broadcast correspondent, former CNN Europe editor. Nina, good to have you.

[Nina Dos Santos]

Good morning. Hi.

[Chris Chermack]

Good morning. The sun is arriving in London. Are we feeling good? The weekend is looking good here.

[Nina Dos Santos]

I'm afraid I don't have an update on that because it was still cloudy five minutes ago when I walked through the door. But it promises to be sunny later on this afternoon. So you know, as long as it's in the double digits, I'm fine with that. Sun or no sun. At least there's no rain.

[Chris Chermack]

At least there's no rain at the moment. That is a positive after the spring we've had. Nina, we have a couple of trade stories to start us off with different trade stories. We'll start with the United States and the European Union. This has been an ongoing spat but there has been movement.

[Nina Dos Santos]

Yeah, I was talking about the weather one takes less more victories. Let's start out with the big victory at this point from the EU has finally agreed among itself to press ahead with its trade deal that you remember Ursula von der Leyen struck with Donald Trump when she had to shock horror venture outside of the EU's borders because of course the UK has now brexited and visit him in his private Gulf resort in Turnberry in Scotland. They struck that deal after the US Imposed really punitive sanctions. Trading punitive, not sanctions, but trading sanctions, let's say tariffs on EU goods. This is one of the most significant trading relationships in the world, worth about 1.8 trillion. And so each side had a lot to lose. Despite the fact that the US Supreme Court actually ruled that Donald Trump's imposition of those tariffs was illegal, the EU is still extremely nervous about missing a deadline on July 4, by which time Donald Trump said that this trade deal should be ratified. Otherwise these kind of tariffs could come back on the table. Well, among the eu, what they've done is they've sort of pressed ahead with this, and that means that members of the European Parliament have now agreed that they will probably vote it through on about the 16th to 17th of June when they come up for this. But, you know, one big sigh of relief probably for the EU as top honchos at the European Commission, because these European Parliamentarians had twice kicked this back. Because of course, Donald Trump has made all those threats about seizing Greenland, which is, you know, part of European territory, because it's part of a sort of semi autonomous part of Denmark.

[Chris Chermack]

Well, he's talked about seizing Greenland, which prompted the EU lawmakers to get involved. But also, of course, just the sort of lack of reliability from Donald Trump. He changes his threats on tariffs. And even just the principle of this has been quite controversial, hasn't it, being a trade deal that essentially reduces tariffs from the European Union to the US but keeps a certain amount of tariffs in place from the US To Europe.

[Nina Dos Santos]

Yes. And what they've also done to reflect that is that they've kept a couple of clauses in there, like a sunset clause, which means that if the EU feels that the US Isn't holding, upholding its side of the relationship, they can end this deal by 2028. And that they can also reimpose their own tariffs on some emotive products, like, for instance, motorbikes from the United States. So they have kept a couple of little get out of jail free clauses inside there. But the reality is that this is one of the biggest trading relationships in the world. Everybody's suffering economically as a result of the Iran war. And that's probably focused minds quite a lot, not least the fact that the United States has also had a big visit with China recently.

[Chris Chermack]

Well, of course, and we've been talking about that on this show. But sticking with, in a way, the Iran war, or somewhat related to that, because there's been a Gulf trade deal between Gulf states and the U.K. yes, that's right.

[Nina Dos Santos]

This is a bit of a win actually for Sir Keir Starmer's government on the foreign policy and economic side at a time when, boy, does he need it domestically. It means that this is the first trade deal that has been struck by a G7 country and the GCC states. So the UK has struck this trade deal with a Group of Six Gulf states. The UK says it's going to be worth about 3.7 billion pounds to the UK economy, which isn't small. But change at a time like this, when one really needs, will particularly benefit the UK services industry. And also it's to a certain extent a big win for Gulf states at a time when obviously these are countries that have really suffered, particularly their diversification. Economic diversification plans have suffered recently as a result of, you know, lots of expats who had gone there, moved there sometimes for tax reasons or just bigger opportunities from the UK and are now sort of concerned that the security dynamic might not be to their lik. This is a big win for both sides in terms of sort of the PR optics as well, I think.

[Chris Chermack]

A big win for both sides. How much credit do we expect UK Prime Minister Keir Starmer to get for this?

[Nina Dos Santos]

Probably not a huge amount on the streets of Makerfield, which is where the next by election is coming from. And obviously the person from the Labour Party could challenge him for the Premiership, Andy Burnham, if he wins. You know, that's a problem for Keir Starmer. But at the same time Keir Starmer also has to show face in the sense of saying, well, I want the Labour Party to win this and not the challenges from the right of reform. And you can bet that these big types of trade deals are exactly the type of thing that don't necessarily go down, don't always are not always in the forefront of voters minds and local by elections. Let's just put it that way.

[Chris Chermack]

Let's put it that way for now. We'll certainly have more on that in the coming weeks. But let's turn to the Chelsea Flower Show. This is a crazy story, interesting from the New York Times because there is what they're calling in their headline, a Sexy Garden at the Chelsea Flower Show.

[Nina Dos Santos]

Yes, that's right. Now, if you're getting hot under the collar about the fact that for a second year in a row I think gnomes have not been banned in the confines of the Chelsea Flower show, which I think was actually the story at the start of the week when the Royals paid their inaugural visit to this annual flower show, which is such an institution in the uk. It also takes place for those listeners we have out there who aren't Londoners. I'm born bred Londoner and they don't know London. What you should probably know about London is that Chelsea is probably the stuffiest, richest, oldest part of the capital. And as a result, it's quite socially conservative. Yeah, but a company called Love Honey, which makes, let's just call them, intimate toys,

[Chris Chermack]

we're treading lightly for our conservative choices.

[Nina Dos Santos]

Just wait, I haven't got to the floral arrangements yet. Chris. It has decided to sponsor what it calls Aphrodite's Hothouse. So it's inspired by Aphrodite and Eros, the gods of love and passion. And I've got to read you part of its press release. Because this has been so successfully marketed, it ended up not just, as you said in the New York Times, but also in the Times of London, which is, I thought, well, gonna have to cover it even on Monaco Radio, even if it's quite early in the morning. Here's part of the press release. The studio conceived as the ultimate pleasure garden, this boundary pushing hot house is lush, fragrant, and just a little bit naughty. Visitors are invited to step inside and wander through the tunnel of love, which is dripping with sultry orchids, glistening anthurium, pendulous nepenthes, wandering vines that coil and entwine with knowing intent. Now take that, the fine, fine, fine folks in their leather suits. Not leather, linen suits. Probably some of them will be in leather suits. I'm wearing a leather jacket, actually. I think that's what's inspiring me. But I suppose it's just, you know, it speaks of the typical sort of no sex, please wear British sort of attitude, and they've taken a really funny twist on it. And I suppose the more serious point I'm trying to make here is that the Chelsea Flowers show has become this sort of big cultural and economic juggernaut.

[Chris Chermack]

Absolutely.

[Nina Dos Santos]

And it wasn't in my time when I was young, it was you know, considered sort of, you know, the preserve of daytime tv, dare I say with older people who garden and were passionate about it, but now they're passionate for other reasons.

[Chris Chermack]

Well, with these changes, we might have to send our own Fernando Augusto Pacheco down there. I'm sure he'd love.

[Nina Dos Santos]

Oh, his Instagram feed would deliver endless dividends, I'm sure.

[Chris Chermack]

One final story that I'm also interested in because I have a personal relation to this final one, Nina. But tell us, first of all is

[Nina Dos Santos]

we can't Leave that sentence hanging.

[Chris Chermack]

After what we cows can recognize the faces of people they know. I can. I can. I am a testament to this. As a six year old, I had two cows that I would visit on my way back home. And they'd always come straight to the fences as soon as I arrived with my parents.

[Nina Dos Santos]

Where was that?

[Chris Chermack]

This was in Brussels, actually. Yes.

[Nina Dos Santos]

There were cows in Brussels.

[Chris Chermack]

There were cows in Brussels. There were just two in a field and they would always show up every time. They would just come running to the fence. So clearly they recognized me.

[Nina Dos Santos]

A conversation with you about the common agricultural.

[Chris Chermack]

I don't think so, but tell us, tell us what this study has found.

[Nina Dos Santos]

Well, first of all, the Times full credit for their headline writer on this one, Deja Moo. They found that cows can recognize the faces of people they know well. To you, that's no surprise.

[Chris Chermack]

That's no news. Exactly.

[Nina Dos Santos]

I'm a biologist by degree, actually, so to be honest with you, this seems like, you know, the sort of standard thing you'd learn in animal behavior. But it hadn't actually been proven to this extent by scientists before. So scientists took some Holstein cows and what they did was. And it's. If you look at the pictures of this article, it's quite funny because you've got this rather stoic, enormous Holstein cow staring at pictures on a. On a projector screen with different faces, a bit like a sort of identikit, like a lineup that you'd find in sort of police stations. And that what they found was that cows looked at faces of people they didn't recognize for longer than faces that they'd seen before. And then if you amplified that by adding the sound of a new person, they'd be even more interested. I do remember over the years that there were, there's been all sorts of, you know, quirky studies about cows. About 10 years ago, I remember that British cows were found to understand regional accents differently. It was the Brummie accent near Birmingham, which actually, if anybody knows, the UK will know, is actually quite strong, that solicited the strongest response in British cows about 10 years ago. And just last year, we found that a Swiss cow called Veronica was seen to use a broom to scratch parts of her hindquarters that she couldn't reach before. And that was viewed as, you know, the first time that a cow had been observed using tools. So, you know, deja vu. There you go.

[Chris Chermack]

Who knew there were so many studies about cows?

[Nina Dos Santos]

It's not all black and white, put it that way.

[Chris Chermack]

Nina Dos Santos. Thank you very much for joining us here in the studio. You're with the Globalist on Monocle Radio. And still to come in the program, those notifications from Samsung will continue uninterrupted as the South Korean government has helped avert a strike at the company. We'll have the latest. Now here's what else we're keeping an eye on today. Iran says it is reviewing a new US Proposal it received to end the war between the two countries. US President Donald Trump says he's willing to wait a few days for the right answers from Tehran. The United Nations General assembly has reaffirmed countries responsibility to confront climate change, backing a ruling by the International Court of Justice last year that found it was unlawful for countries to neglect their climate commitments. Eight countries opposed the measure, including the United States. SpaceX has filed for an initial public offering or IPO targeting a record valuation of 1.75 trillion doll. The filing shows that SpaceX is not currently profitable due to massive investments in AI to secure it for the future. And Germany has arrested a married couple it alleges acted as Chinese spies. The couple worked for car companies and ingratiated themselves to technical schools and universities, even inviting professors to give talks in China that will have been attended by military officials. This is the Globalist. Stay tuned. Well, it is 1531 in Seoul, 831 in Zurich. Now today was meant to be the day that some 48,000 workers across South Korea went on strike. But at the last minute, it does appear a deal has been reached between unions and the South Korean tech giant Samsung Electronics. The company has seen profits surge amid booming demand for AI semiconductors and workers have been demanding a piece of the action. Samsung Group accounts for an incredible 1/5 of South Korea's economic output and it plays a massive role in global semiconductor supply chains, which does explain why the South Korean government was involved in brokering the deal. Well, I'm joined now by Nemo Kim, journalist in Seoul specializing in Asian issues. Nemo, it's great to have you on the show. This strike, as we understand, was about bonuses because Samsung has become so incredibly profitable. So tell us how that's come about.

[Nemo Kim]

Right. The Samsung union wanted a more stable and generous performance bonus system, especially as the AI chip market drives demand at the moment. And the tentative deal fixes more than 10% of business performance as bonus funding, creating this possibility of very large payouts for semiconductor workers if the division performs strongly. And under this tentative agreement, As I mentioned, 10% of business performance. So for employees in the Device Solutions or DS Division this creates basis for very large bonuses. Their annual salary of 10 sorry, of 100 million won could potentially receive up to 600 million won or US$400,000 in performance bonuses if the relevant performance conditions are met.

[Chris Chermack]

Well, that is a large number, but again shows just how profitable Samsung has become. I understand the sticking point or part of the sticking point in this conversation with unions around bonuses was whether to give bonuses also to those divisions that are not doing as well in Samsung.

[Nemo Kim]

That's right. And the AI boom is not lifting every Samsung workers in the same way. So it has been creating divisions because the biggest gains are concentrated, as you can imagine, in Samsung's semiconductor business. As I mentioned, the DS division, the device solutions division, basically the semiconductor chip business area, covering areas such as memory chips, system semiconductors and advanced packaging. So workers in that part of the company are much closer to the profits generated by AI demand, whereas employees in other divisions may not benefit in the same way.

[Chris Chermack]

So there won't be a benefit all the way across the company. But just tell us about the impact you expect this might have. I mean, shares in Samsung, I understand, rose nearly 8% as this strike was averted. As early as yesterday, we still expected the strike to go forward, but are there any concerns now that a deal has been reached? How might this affect Samsung's future? Profitability, viability, that kind of thing?

[Nemo Kim]

Right. Well, if the strike had gone ahead, and as I mentioned, the strike has just been, the more precise wording I meant would be that the strike was suspended, not permanently called off. So Samsung Electronics and the unions reached a very dramatic tentative agreement. And if it had gone ahead, there would have been massive impact all across the board on the entirety of South Korean economy as well as global semiconductor supply chains. It would not have been just a Samsung issue. Samsung is central of course, to South Korea's economy and to the global memory chip supply chain. And the impact could have been very significant. Samsung is one of the country's most important companies as well as a key global supplier of memory chips. And a major strike there would not only have affected the company, it would have disrupted South Korea's export economy and added a lot of pressure to global semiconductor supply chains, especially at a time when demand for AI related chips is extremely high and which is why the government stepped in so actively before the strike began. And the planned strike was not treated merely as an ordinary company dispute. It was seen as a possible national economic risk because Samsung's chips are tied to so many things. Smartphones, servers, AI data centers as well as global technology production.

[Chris Chermack]

Well, absolutely. And then tell us Nemo, what that means for kind of the future of labor relations in South Korea, particularly this idea, as you say, that the government felt it had to get involved.

[Nemo Kim]

Right. So more broadly, this dispute I feel tells us that the AI boom will create labor conflicts as well as corporate profits. So workers making the chips that power AI want basically a bigger and clearer share of the gains. And I think this current dispute also shows how much Samsung itself has changed. It's a company once known for keeping unions very weak. Samsung has been known also known for its very strongly anti union culture and that company has now reached a last minute deal, albeit a very last minute one with organized labor to avoid a major strike. And also the semiconductor industry may be very high tech, but this situation tells us that its future still depends on very old questions such as wages, fairness at the workplace, bargaining power of unions, and who actually gets to benefit when a boom arrives.

[Chris Chermack]

Brand new technologies age old questions around salaries. Nemo Kim, journalist specializing in Asian issues in Seoul. Thank you very much for joining us here with Monocle Radio. Now if you're looking for some sound of summer tracks to add to your playlist, well our own musical curator Fernando Augusto Pacheco suggests you try the Franco Brazilian duo PP formed by Paola and Povoa. They just released a new EP called Joker. It's an eclectic mix of bailiff, funk, techno and electro. While in Paris, Fernando caught up with the duo. Here's some of his interview I was

[Paolo (PPJ Duo Member)]

born in Brazil, but I grew up in the north of France and I was adopted when I was young by a French family. When I was 1819 years old I started started to do some research about my country. So I first traveled there to search my parents origin and stuff when I was 20 and since then I started to play music with a producer in Lille telling all about my searches about this story and I put all my little poems on electronic music because I grew up in north of France like border with Belgium where I first first had my clubbing experience and then I mixed my two worlds and for me it was so important to stay connected with Brazil because of that crazy story me reconnected with my country and since this first travel I have never stopped about digging, searching, connecting with people, connecting with my biological family. So yeah this is a big mix and big influences on the PPG music.

[Interviewer with PPJ Duo]

I think that's very beautiful and and you know I always have this theory. Paul, I don't know if Povo you would agree with me that I Genuinely think Brazil and France, they have a very strong music admiration for each other. Because every time I come to Paris, I listen to a lot of Brazilian music. A lot of Brazilian artists come here, much more than in London, I would say. What was your relationship with Brazilian music before you start ppj, before you met Paula?

[Paolo or Pavoa (PPJ Duo Member)]

Yeah, it's a whole. It's a whole world with its own music. It's his own thing. It's very specific and it's. It's really, really fascinating. So I've always been curious about it, but Paola really enriched my knowledge about it.

[Interviewer with PPJ Duo]

You brought the.

[Paolo or Pavoa (PPJ Duo Member)]

The.

[Interviewer with PPJ Duo]

The electronic like, because you, you know, you had your stuff. You also kind of. You're not just in ppj, you also do some stuff solo as a producer.

[Paolo or Pavoa (PPJ Duo Member)]

So, yeah, I'm really into club music, I would say, in all its forms. But yeah, with ppj, we can mix together the Brazilian softness and beauty of Paolo's voice and all her culture around it with the club music, because we like to celebrate in the club. So it goes really well together, you know, with the strange of the club music and the softness of that part.

[Interviewer with PPJ Duo]

And the new ep, it's a celebration. It's very carnivalesque. I mean, it's called Joker, right?

[Paolo or Pavoa (PPJ Duo Member)]

Yeah.

[Interviewer with PPJ Duo]

Maybe Paolo, you can tell us a bit, some of the songs. I mean, I wonder if we can start maybe with Korra. It's a bit boss, it's a bit mpb, but then you go to the dance floor, you know, so it's quite innovative in that sense.

[Paolo (PPJ Duo Member)]

I love to listen to this music. It's so perfect for this new season. Very sunny. We want to dance. I don't know. For me, it's like the summer tune. It can be dance in Brazil, it can be dance here in France, it can be dance in London, Everywhere, all around the world. So yeah, it's. We can imagine. Rhoda December. For my part, Pouvoy is saying he started like, wanted the bossa nova, but the only thing I can hear, it's like Roda decombal. A lot of musicians around the table with guitar cavaquinho, quicker, but there's no quicker on it. But I can imagine the happiness. A lot of people around the table drinking caipirinha or very fresh frozen beer and dancing, being happy, wearing only a little soft dress for women. And with the electronic music, it's such a great vibe. It's unexpected. We're starting with this guitar riff and then it come from this amazing electronic beat in the middle. So it's kind Of Perfect. And it was a collaboration with Chloe Cahier. We did it in the studio. It was really, really fun to do it. Really positive.

[Paolo or Pavoa (PPJ Duo Member)]

I was very inspired by this track I had learned on the guitar when I played the chord. Remember we played it together a few times. Yeah. See, it's a bosa, right?

[Interviewer with PPJ Duo]

Beautiful.

[Nicholas Barrio]

Yes.

[Interviewer with PPJ Duo]

Sochi had their bosa. A little bit of samba as well.

[Paolo or Pavoa (PPJ Duo Member)]

Yeah, yeah.

[Interviewer with PPJ Duo]

And I love, for example, I'm a. I was huge. It was my first move. Electronic movement was electro clash. I was quite young when he came out. There's even a little bit of that. The Joker, right?

[Paolo or Pavoa (PPJ Duo Member)]

Yeah.

[Interviewer with PPJ Duo]

Do you also liked kind of that period?

[Paolo or Pavoa (PPJ Duo Member)]

Yeah, yeah, for sure, for sure. But it's not that much on pop though.

[Paolo (PPJ Duo Member)]

That would say people are saying we are electro Clash. I knew this period when I was a young adult with Sexy Sushi, this kind of bell. But yeah, it wasn't on purpose.

[Chris Chermack]

With ppj, the duo Paola and Pavoa of PPJ there, their latest ep, Joker is out now. This is the globalist on Monocle Radio,

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iq, EQ and AI. Three components key to the craft of innovation at ubs. Because to stay ahead in a rapidly evolving age, you need a partner with decades of experience, endless passion for the work, and a finger on the pulse of leading technologies. Bridging human expertise with artificial intelligence. All to elevate you. Ubs banking is our craft.

[Chris Chermack]

It's coming up on 7:45 here in London and it's time now for a roundup of aviation news. For that, we're joined from Phnom Penh in Cambodia by Matt Driscoll, editor of Asian Aviation Magazine. Matt, great to have you on the show and particularly because looking through your story list, you know, this is a tough time for a lot of airlines around the world. You bring us some good news, starting with Singapore Airlines.

[Matt Driscoll]

Well, it's good news and it's bad news. I mean, there's never. In this world today, there's, you know, it's always a good news, bad news story. Yes, Singapore Airlines is adding some new routes, but they're also trimming routes in other places. I think Barcelona was one that I saw the other day. If we're going to be be focusing on Europe a little bit, they're adding flights for Britain, as the story was talking about, but every airline around the world, not just in Asia, not just in Europe, but around the world, every airline is. And I, I hate the business jargon, but they're rationalizing all of their flights. So if they can add a Plane here where they're picking up capacity, which you're seeing a lot of from Europe to Asia. A lot of times people would transit through the Middle East. I've got a son that's to school university in France. Normally we would fly him through Dubai or Abu Dhabi to come back to Cambodia for vacations and things, but we said, no, we're going to put him on Singapore Airlines. It cost a little bit more, but all the airline tickets are up a little bit more. So, yes, Singapore Airlines is expanding, they're adding flights, they're filling planes. But it's a, it's not quite the good news story that we would all like to see at this time.

[Chris Chermack]

Well, absolutely, because a lot of airlines are struggling and rationalizing, as you say, and linked to this. I found it interesting, Matt, this is also about kind of Singapore Airlines. Air India is one of these airlines that has struggled massively because of everything happening in the Gulf. But Singapore Airlines still has some room to back them.

[Matt Driscoll]

Yes. And I mean, if you've got a partner like Singapore Airlines, that's great. It's one of the, it is always ranked either the number one or the number two airline. The problem is, and I've been to India many, many times. I started traveling to India in the 1990s. Since I've been editor of the magazine, I've been there in the last 10 years. I've probably been there five or six times. And I have flown Air India. And it is not an airline that I would like to fly. I didn't like it back then. I wouldn't fly it now. I would fly Singapore Airlines. Air India is a tough nut to crack, as we say. They've got a lot of things that they need to work on. They've had some safety issues. They've got a lot of other issues, leadership issues, things like that. But Singapore Air, I was talking to the director general of the association of Asia Pacific Airlines this morning and you know, Singapore Airlines, who he worked for at one point, you know, they are going to stick with their airy India investment. And again, as I said at the beginning, if you want to partner, Singapore Airlines is a good partner. But Singapore is not India and India is not Singapore. So that, that's a story that bears a lot of watching.

[Chris Chermack]

Well, it does bear watching, but interesting nonetheless that Singapore Airlines is involved. If, as you say, Air India is an airline that is struggling, I mean, what does that say in general? Does a company like Singapore Airlines have an interest in the entire kind of Asian aviation sector staying afloat

[Matt Driscoll]

yes, it does. I mean, when. And it's amazing to me, when I started editing the magazine 10 years ago, the one thing that struck me was the, yes, the airlines compete. Yes, airports compete and they, they work really hard at putting out the best product that they can against their competitors. But when things happen, like Covid or the war in Iran, you know, from the US And Israel, when things like this happen, it's amazing how airlines will really come together, especially on things like maintenance, over repair, overhaul, and, you know, someone is missing a tool from their shop, then they can borrow it and they take it back. You know, it's amazing. They, they do cooperate a lot. And having a partner like Singapore Air should give investors, should give other people confidence that Air India will get to where it needs to be. But I think it's going to be a long road ahead.

[Chris Chermack]

Well, finally, one more story from you, Matt. And this is related to the summit that we were talking about quite a lot on this show between President, President Trump and Xi Jinping in Beijing last week. China has now finally confirmed a new Boeing order.

[Matt Driscoll]

Finally, yes. And I feel like for me, I mean, I am obviously, my accent, I'm American, but I'm no fan of, you know, who in the White House. But they, I think the Chinese. And I lived in Hong Kong for a while. I've dealt with China for a long time. I think the Chinese felt that they had to throw Trump a bone, you know, that he traveled all the way to China and went through, you know, state dinner and all of that. They had to kind of throw him a bone. But it took days for China to confirm the order. And we still haven't heard anything from Boeing. So, yeah, it's very easy. It doesn't cost any money to say, sure, we'll order 200 planes and then six months from now say, well, actually Airbus has given us a better deal or we're going to invest in COMAC or Chinese airplane and those kinds of things. So what strikes me is the, the complete lack of details. What kind of planes, when are they going to be delivered, you know, things like that. None of that is out in public right now and Boeing hasn't even commented. So is it a real order or is China kind of dangling it out there to keep Trump from doing something on Taiwan or something else?

[Chris Chermack]

Well, definitely, we have just maybe another minute, Matt, but tell us about COMAC then. I mean, is this, is, how does that fit into this? Is the idea that China might want to support its own airline planemaker instead of Boeing

[Matt Driscoll]

is, you Know, it is what it is. It's a Chinese airline, it's a Chinese aircraft, but it's made with probably 75 to 80% of Western components. And I thought the one line from the, the ministry, the Chinese Ministry of Commerce that was very interesting when they, when they confirmed the statement that China was going to buy 200 Boeing planes, they said, and the US has made, you know, explicit guarantees for engines and components. Those are the biggest. That's, which is basically 90% of the aircraft. So China can build a fuselage, China can build the wings, but the landing gear, the engines, the avionics, the, you know, things like that that make up the 90% of the airplane that's not a fuselage. China said that the US has made explicit guarantees that those parts, those components, those engines will be supplied because that's where China is weak. They can develop some of their own engine technology. They have some of their own avionic technology, especially in the military sphere, but not so much in the commercial sphere. So that was interesting to me. But the other lack of details is, is also interesting because, you know, they could cancel it. I didn't see any papers signed and nothing is final until you sign on the dotted line.

[Chris Chermack]

Well, absolutely. Matt Driscoll, editor of Asian Aviation magazine in Cambodia, thank you very much for joining us. This is the Globalist on Monocle Radio. Well, finally on today's show, to the world of fashion where Blaseymania appears to have taken over. This being Mathieu Blaisy, the new creative director of Chanel, who's created something of a craze that appears to be driving shoppers into stores. There are some new numbers to back this trend up, sort of because Chanel returned to growth in 2025 after seeing a dip in sales and profits the year before. I'm joined now by Natalie Theodosi, Monaco's fashion director. Natalie, great to have you on the show. Let's get into these growth numbers. First of all, to what extent do we think that these were actually driven by Blasi himself?

[Natalie Theodosi]

Thanks for having me, Chris. Yes, I think it's a combination of factors and overall it's extremely positive for Chanel and also for the luxury industry, which has had an overall slowdown or at least a correction in the last few years after explosive growth post Covid. So after a small dip of 4.3% in 2024, the Chanel House announced that there was 1.8 of revenue increase in 2025 and their revenues are now 19.3 billion. I would say that the momentum Around Mathieu Blasi's appointment, he showed his first collection in September of 2025. Definitely did contribute to this. And their CEO Lina Nair, speaking in various interviews, did kind of think that this is the case. But there's also a much bigger strategy, I would say there where there was so much investment in retail, in specialist fragrance and beauty stores, specialist high jewelry stores, there was investment all across their category, a lot of also investment in their supply chains and in craft. So it's 360 approach and clearly it's working for the house of Chanel.

[Chris Chermack]

Well, it is working for them. And what do you expect then coming into this year? Because if 2025 was only partly based on Blasi, given that his products were not actually in stores, they are this year. So could 2026, I mean, could that momentum continue to grow?

[Natalie Theodosi]

Absolutely. I read one business journalist, right, that it's not a question of growth in 2026, it's a question of how crazy the growth is going to be, which is great for the industry. And just looking at, like you said, the Blasimania and that phenomenon that we observed in boutiques around the world when the product launched, it's unlike anything else that we've seen in years, I think. I think there's been such a saturated market product that has been quite generic over the last few years with that quiet luxury phenomenon. While not now shoppers were really just lining up the boutiques, making requests, texting their friends what they're buying and just really enjoying shopping again. And there was always that one word, joy around his collections because they're colorful, they're quite distinct designs. So definitely I think we're going to see even bigger growth. And aside from Blasee's refresh of the brand again, there's even further development and investment in retail, especially across the Americans, which are driving the growth. So definitely I would say 2026 will be even more positive.

[Chris Chermack]

Well, Natalie, we just have another 30 seconds or a minute or so, but aside from the Americas, Chanel is now also even talking about opening more stores in China. Just a word on that. Does Blasey's reach extend that far?

[Natalie Theodosi]

China has been a tricky market for the luxury industry the last few years and in their 2025 results, it just looks about like it's stabilizing and that growth and interest is coming back. Definitely. I think Blasey's collection has kind of caught the attention of the market and I think that's the moment probably, especially with the right retail investment and client experiences that we could see Recovery Blazi

[Chris Chermack]

Mania around the world. Natalie Theodosi, Monaco's fashion director, thank you very much for joining us. That is all the time we have for today's program. Thanks to our producers, Angelica Jobson, Laura Kramer and Desiree Bandly in Zurich, our researcher Josefina Gomez, Ryuma Takahashi in Tokyo, as well our studio manager, Elliot Greenfield, with editing assistance by Jack Jewers. After the headlines. There is more music on the way. The briefing is live at midday here in London. I'll be your host for that. The Globalist returns at the same time tomorrow. Emma Nelson, back for that one. I'm Chris Chermack. Thanks for listening, Sam.

[UBS Narrator]

With ubs, you have a truly global partner incorporating new technologies, innovative approaches and unexpected opportunities, leading you to insights that help answer the questions that matter. Delivered with passion, care and unmatched expertise. Because it's about rising with the dawn each day, knowing that we can do even better. That's what banking is to us. Not just world work, but a craft. UBS advice is our craft.