Speaker 1: News when you want it with Bloomberg News Now, I'm
Speaker 1: Tom McKenzie.
Speaker 2: And I'm Karoline Hepkere.
Speaker 1: The Bank of England has proposed giving investment banks until
Speaker 1: the start of twenty twenty eight to implement global capital
Speaker 1: rules on their trading businesses. The move is part of
Speaker 1: a range of measures to boost British lenders competitiveness that
Speaker 1: have been outlined by the BoA's regulatory arm, the Prudential
Speaker 1: Regulation Authority. The PRA also announced measures to easy liquidity
Speaker 1: requirements for small and mid sized lenders and proposed exempting
Speaker 1: more of them from the full rigors of the UK's
Speaker 1: resolution regime. Chancellor Rachel Reeves will pledge to cut red
Speaker 1: tape in her annual speech to London's financial sector in
Speaker 1: a bid to help drive the government's growth plans. Reeves
Speaker 1: is expected to say that dialing up risk will allow
Speaker 1: more families access to mortgages. It will be the Chancellor's
Speaker 1: first major public speech since UK assets sold off less
Speaker 1: than two weeks ago, when she appeared visibly upset in Parliament,
Speaker 1: but since then, the city has grown increasingly wary of
Speaker 1: taxes down the line. Bloomberg's James Walcock has the story.
Speaker 3: Chancellor Reeves's mansion house dinner could be mistaken for tapass.
Speaker 3: There are many small plates on offer to the financial sector,
Speaker 3: a concierge servers for international investors, reforms to the financial
Speaker 3: Lombardsman and a new captive insurance regime. And the city
Speaker 3: has been teased with hopes for a review of ring
Speaker 3: fencing rules and possibly an entrepreneur's visa system. But despite
Speaker 3: these tasty morsels around deregulation and growth, many in the
Speaker 3: world of finance see the government's fiscal worries wonder if
Speaker 3: the bill is going to be coming later in the
Speaker 3: autumn budget in London James Haorcock Bloomberg Radio.
Speaker 2: In terms of data, the Chance's speech comes as the
Speaker 2: UK economy shows more signs of rebounding from its recent slump.
Speaker 2: June's retail sales figures rose by three point one percent
Speaker 2: from a year earlier, according to data from the British
Speaker 2: Retail Consortium. It's a positive signal after US tariffs, tax
Speaker 2: increases and a minimum wage hike drove back to back
Speaker 2: retail sales contractions in the UK in April and May.
Speaker 1: In Vidia is preparing to resume sales of high end
Speaker 1: AI chips to China after getting the green light from
Speaker 1: the Trump administration. The H twenty chip was designed specifically
Speaker 1: by in Vidia to comply with earlier US trade restrictions,
Speaker 1: but has been banned from sale in the country since April,
Speaker 1: but in a blog post, the tech giant says that
Speaker 1: US officials have now told them that they will approve
Speaker 1: export licenses. Gene Munster of Deep Water Asset Management says
Speaker 1: the move comes after weeks of thoring relations between Washington
Speaker 1: and Beijing.
Speaker 4: My suspicion is that some of this semi trade truths.
Speaker 4: I'm luctant to give it everything that's going on to
Speaker 4: call it that, but that we have seen between the
Speaker 4: US and China probably laid the groundwork a few weeks
Speaker 4: ago that this in fact was going to happen with Nvidia.
Speaker 4: And so what does it mean. What is the Trump
Speaker 4: administration essentially saying is that they have to give something
Speaker 4: to get something.
Speaker 1: Gene Munster and the US reversal is a significant win
Speaker 1: for Nvidia CEO Jensen Huang. He has previously branded Washington
Speaker 1: chip curbs a failure that fueled the rise of Huawei
Speaker 1: and other Chinese AI rivals.
Speaker 2: Well China's economy grew faster than expected in the second quarter.
Speaker 2: GDP rows by five point two percent after a gain
Speaker 2: of five point four percent in the first three months
Speaker 2: of the year. However, strong exports to markets outside the
Speaker 2: US masked deepening pressure from weak domestic demand. Despite a
Speaker 2: raft of government subsidies, excess manufacturing capacity and weak confidence
Speaker 2: in the property sector continue to suppress Chinese consumption.
Speaker 1: US President Donald Trump says he is disappointed but not
Speaker 1: done with Vladimir Putin after he threatened to impose severe
Speaker 1: tariffs on Russia if it does not end the war
Speaker 1: with Ukraine. The comments, made in an interview with the BBC,
Speaker 1: come as the US pledges fresh weapons supplies for Kiev,
Speaker 1: which Trump says will be paid for by NATO member states.
Speaker 1: Speaking during a meeting with NATO's Secutary General at the
Speaker 1: White House, Trump set out a timeline for the Russian president.
Speaker 4: I'm disappointed in President Important because I thought we would
Speaker 4: have had a deal two months ago, but it doesn't
Speaker 4: seem to get there.
Speaker 5: So based on that, we're going to be doing secondary
Speaker 5: tariffs if we don't have a deal on fifty days.
Speaker 1: It's very simple, and they'll be at one hundred percent.
Speaker 1: President Trump, speaking during a meeting with NATO's and Mark Rutter. There,
Speaker 1: Matt Whittaker, the US ambassador to NATO, so as the
Speaker 1: planned action effectively represents secondary tariffs or sanctions on countries
Speaker 1: that are buying oil from rush Up. The President did
Speaker 1: not elaborate on the powers he would use to impose
Speaker 1: those tariffs, but said he wasn't sure if congressional approval
Speaker 1: would be needed.
Speaker 2: Bloomberg understands that the European Union has finalized a second
Speaker 2: list of US tariff countermeasures, targeting goods worth seventy two
Speaker 2: billion euros. The list includes Boeing aircraft and bourbon, as
Speaker 2: well as additional duties on machinery put out, chemicals and plastics,
Speaker 2: medical devices, wines, and other agricultural goods. Our Senior White
Speaker 2: House correspondent josh Win Grove says Europe is a significant
Speaker 2: market for President Trump, and the.
Speaker 5: Question is, of course, will they land somewhere or will
Speaker 5: Trump look at wherever they are in a week or
Speaker 5: two and think that that's either not enough and stick
Speaker 5: with the thirty percent, or it is enough and go
Speaker 5: to a lower number. Remember, of course, the baseline number
Speaker 5: right now is ten percent. He initially announced twenty percent
Speaker 5: on Europe in the initial Liberation Day tariffs. He's threatened
Speaker 5: as high as fifty percent on Europe and is always,
Speaker 5: you know, that's been kind of one of the top
Speaker 5: of the list places that he's complained about when he
Speaker 5: talks about unfair trade relationships.
Speaker 2: Bloomberg's Josh wind Grove there on Trump's EU tariff's journey.
Speaker 2: EU member states still need to give their approval though,
Speaker 2: before the list that could be adopted. The measures are
Speaker 2: a response to President Trump's earlier so called reciprocal tariff
Speaker 2: of twenty percent hitting most goods, and the additional levees
Speaker 2: on cars and car parts of twenty five percent, and
Speaker 2: the universal rate was later temporarily lowered to ten percent
Speaker 2: to allow for negotiations to take place. France's Prime minister
Speaker 2: will outline a plan today to sharply narrow the country's
Speaker 2: budget deficit. The move by Francois Beirut sets the stage
Speaker 2: for a parliamentary battle that risks triggering another government collapse.
Speaker 2: The prime minister will present details of around forty billion
Speaker 2: euros and spending cuts and tax increases for next year.
Speaker 2: The proposals are aimed at shrinking the euro Area's largest
Speaker 2: budget gap, as France's fiscal difficulties continue to rattle bond markets.
Speaker 2: Earlier this month, the country's five year bond yield to
Speaker 2: pass Italy's for the first time in twenty years.
Speaker 1: OK, those are your top stories on the markets. The
Speaker 1: European stock six under the benchmark is up a tenth
Speaker 1: of a percent. In the UK, the fort one hundred
Speaker 1: is currently flat at eighty nine hundred and ninety seven,
Speaker 1: just below that nine thousand level. And on Wall Street
Speaker 1: smp E meaning so US futures for the S and
Speaker 1: P five hundred pointing two gains of three tenths of
Speaker 1: eight percent. Now's that one hundred futures up five tenths
Speaker 1: and part of that is down to optimism around the
Speaker 1: chip space on the back of these easing of export
Speaker 1: controls for Nvidia.
Speaker 2: That's news when you want it. With Bloomberg News. Now,
Speaker 2: I'm Caroline Hepcare
Speaker 1: And I'm Tom McKenzie, and this is Bloomberg