Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloemberg
Speaker 1: Day by cur podcast. Good morning, It's Monday, the fourteenth
Speaker 1: of July. I'm Caroline Hepkeit in London.
Speaker 2: And I'm Stephen Caroline Brussels. Coming up today, the EU
Speaker 2: lines up allies and countermeasures as Trump threatens a thirty
Speaker 2: percent tariff from the first of August if no agreement
Speaker 2: can be reached.
Speaker 1: Help wanted, but not by humans. UK hiring tumbles as
Speaker 1: AI disrupts jobs and payroll costs search in another worrying
Speaker 1: sign for Starmer and Reeves.
Speaker 2: Plus why Europe's defense ramp up is creating an opportunity
Speaker 2: for Sweden's Grippen fighter jet to take off.
Speaker 1: Let's start with a roundup of our top stories.
Speaker 2: The European Union is looking to step up engagement with
Speaker 2: other countries hit by Trump's tariffs following a slew of
Speaker 2: new threats. Sources tell us that the EU has reached
Speaker 2: out to nations including Canada and Japan and raise the
Speaker 2: prospect of a coordinated response to US levies. The move
Speaker 2: comes after President Trump unleashed his latest tariff ultimatum over
Speaker 2: the weekend. The US President declared that the EU and
Speaker 2: Mexico would face a thirty percent tariff if agreements can't
Speaker 2: be reached by the first of August. European Commissioned President
Speaker 2: or Slavonderlon says she's hopeful of a deal.
Speaker 3: We prefer a negotiated solution.
Speaker 1: This remains the case and we will use the time
Speaker 1: that we have not the.
Speaker 4: First of August.
Speaker 2: Our Savanderlyn says the EU Opini Union will extend the
Speaker 2: suspension of trade countermeasures against the US until the start
Speaker 2: of next month in a bid to secure a deal.
Speaker 2: At the same time, Germany's Chancellor Friedrich Martz said thirty
Speaker 2: percent tariffs would hit exporters in Europe's largest economies to
Speaker 2: the core if a negotiated solution in the trade conflict
Speaker 2: can't be found.
Speaker 1: China's export growth has accelerated for the first time since March.
Speaker 1: Exports rose on year by are higher than expected five
Speaker 1: point eight percent in June to three hundred and twenty
Speaker 1: five billion dollars. Bluebag's mid min Low says the pickup
Speaker 1: was driven by a reduction in the US tariffs and
Speaker 1: robust demand from key overseas markets.
Speaker 5: The exports are really basted by the trade trews the
Speaker 5: front loading of shipment's economists have been telling us that
Speaker 5: we really have to prepare for a potential, you know,
Speaker 5: fall off in demand for exports in the second half
Speaker 5: of the year. And of course we are still waiting
Speaker 5: for the mid August deadline when the temporary truths will expire,
Speaker 5: and some economists believe it's still a possibility that maybe
Speaker 5: the tariff levels could still increase in the later half
Speaker 5: of this year, So there's still a lot of uncertainty there.
Speaker 1: Mid min Low speaking there, the US tariffs on Chinese
Speaker 1: goods have been cut back to around fifty five percent,
Speaker 1: down from as high as one hundred and forty five
Speaker 1: percent in early April. However, Beijing faces mounting risks from
Speaker 1: Washington's evolving trade strategy. Treasury Sexuri Scott best Center is
Speaker 1: expected to meet his Chinese counterpart in the coming weeks.
Speaker 2: Bloomberg understands that Jane Street has deposited over forty eight
Speaker 2: billion rupees the equivalent of five hundred and sixty four
Speaker 2: million dollars in an escrow account to comply with an
Speaker 2: order from India's market regulator. It comes after these Securities
Speaker 2: and Exchange Board of India temporarily banned the trading giant
Speaker 2: from accessing the local market over allegations of index manipulation.
Speaker 2: The deposit enables Jane Street to resume trading in India,
Speaker 2: but sources say the firm does not intend to return
Speaker 2: to trading in local equity options. While Jane Street has
Speaker 2: not commented on the latest development, it has previously stated
Speaker 2: that it strongly rejects the premise and substance of the
Speaker 2: regulator's order, calling it fundamentally mistaken about its trades now here.
Speaker 1: In the UK, hiring by businesses is down by the
Speaker 1: most in nearly two years, according to data from the
Speaker 1: consultancy KPMG and the Recruitment and Employment Confederation. The numbers
Speaker 1: come as employers show signs of dialing back hiring for
Speaker 1: jobs likely to be affected by artificial intelligence. Bloomberg tu
Speaker 1: Adebayo has more.
Speaker 6: Online job postings in the UK have dropped thirty one
Speaker 6: percent in the three months to May compared to twenty
Speaker 6: twenty two. According to McKinsey analysis, The decline is being
Speaker 6: felt most in sectors with the potential to be significantly
Speaker 6: altered by AI, including areas such as tech and finance.
Speaker 6: Data shows job for hostings for these sorts of roles
Speaker 6: dropped almost twice as much as others. The trend presents
Speaker 6: another drag on a job market already contending with tax
Speaker 6: increases and stalling economic growth. In London, Tia Adebayo Bloomberg
Speaker 6: Radio Britain.
Speaker 2: Has announced today for the state visit from US President
Speaker 2: Donald Trump. The country will host the American leader from
Speaker 2: the seventeenth of September after Prime Minister Keir Starmer invited
Speaker 2: Trump for a rare second visit. Bloombergs James Wilcock has.
Speaker 7: More flashy can get you a long way. In Britain's case,
Speaker 7: flattery seems to have helped Keir Starmer secure a twenty
Speaker 7: percentage point lower tariff rate than that of the EU,
Speaker 7: which would be a major coup if it holds and
Speaker 7: global leaders admit to taking notes from this moment, Can.
Speaker 8: I present a letter from m King to take it
Speaker 8: away in.
Speaker 9: Rash oh as well, well, that is really nice.
Speaker 8: A very special letter. I think the last state visit
Speaker 8: was a tremendous success. His Matchley King wants to make
Speaker 8: this even better than that. So this is this is
Speaker 8: truly historic, an unprecedented second visit so can Stam perform
Speaker 8: a second flourish and leave the UK's pageantry industry into
Speaker 8: real gains on trade and security.
Speaker 7: From the US leader in London, James Wilcock, Bloomberg Radio.
Speaker 1: President Donald Chomp says that the US will send more
Speaker 1: Patriot air defense batteries to Ukraine as long as Europe pays.
Speaker 1: The move is a change of heart for the US leader,
Speaker 1: who had argued that sending more arms would delay any
Speaker 1: peace deal. Ukraine had been receiving US weapons, but only
Speaker 1: with money remaining from Joe Biden's time in office. President
Speaker 1: Trump says that he won't be footing the bill for
Speaker 1: the new deliveries.
Speaker 9: I haven't agreed on the number yet, but they're gonna
Speaker 9: have some because they do need protection. But the European
Speaker 9: Union is paying for it. We're not paying any big port,
Speaker 9: but we will send it. It'll be business for US,
Speaker 9: and we will send them patriots, which they desperately need.
Speaker 1: The President added that he is very disappointed with Russian
Speaker 1: President Vladimir Putin. NATO Chief Mark Russa is scheduled to
Speaker 1: meet with Trump later today, as Axios reports that Trump
Speaker 1: will announce a new plan for Ukraine that also includes
Speaker 1: offensive weapons.
Speaker 2: And the Sports and Asianic Center is captured as first
Speaker 2: Wimbledon title after defeating the defending champion, Carlos Alcaraz in
Speaker 2: four sets. Speaking after the match, the Italian world number
Speaker 2: one acknowledge the challenges he's faced this year.
Speaker 10: I'm very emotional now if I don't cry, but it
Speaker 10: feels feels emotional because only me and the people who
Speaker 10: are close to me know exactly what we have been
Speaker 10: through on and off the court, and it has been
Speaker 10: everything except easier.
Speaker 2: Alex Centner, who also served a three month doping ban
Speaker 2: earlier in the year. Speaking there, that's where chelseacuins the
Speaker 2: Football Club World Cup title, beating Paris anger Man three
Speaker 2: nil in the final. The London side were presented with
Speaker 2: the trophy by US President Donald Trump at the MetLife
Speaker 2: Stadium in New Jersey.
Speaker 1: Those are top stories for you this morning. Let's have
Speaker 1: a look at markets where stop futures are tumbling right
Speaker 1: now for Europe down by half of one percent for
Speaker 1: the U of stocks, fifty futures, real concerns around President
Speaker 1: Trump's tariff threat of thirty percent against europe s and
Speaker 1: P five founded evening futures also annursing some declines, down
Speaker 1: four tenths this morning, looking at the Euro marginally lower
Speaker 1: against the dollar, down about a tenth of one percent
Speaker 1: for the Euro one sixteen seventy five. The Mexican pay
Speaker 1: so is also down two terms against the dollar because
Speaker 1: it's another country in the sites of President Trump with tariff's.
Speaker 1: Asian eggities are mixed. You've got the topics up at
Speaker 1: the costpit also seeing some gains, but we've had some declines,
Speaker 1: for example for the Taiwanese stock market looking at treasure
Speaker 1: yields hovering about four forty one. The only other really
Speaker 1: big notable move again is in bitcoin one hundred and
Speaker 1: twenty one thousand dollars, so it's breaking has broken through
Speaker 1: another record high for bitcoin. Those are the market.
Speaker 4: Stephen.
Speaker 2: In a moment, we'll bring you the latest on the
Speaker 2: US EU trade moves, plus why Sweden's fighter jet industry
Speaker 2: could be poised for takeoff. But another story we've been
Speaker 2: reading this morning from our opinion Columnst. Howard Troy One
Speaker 2: who has been writing about getting healthy again. While a
Speaker 2: little bit older at sixty six, I decided to get
Speaker 2: healthy again. As the essay that he's written for Bloomberg's
Speaker 2: weekend edition with some interesting I mean, we've like to
Speaker 2: feature Horod's writing a lot, because, yes, he writes beautifully
Speaker 2: and in a very sort of relatable way about some
Speaker 2: of the kind of challenges he's had, like taking up
Speaker 2: running in his sixties. Again he gave it up earlier
Speaker 2: because of an injury as well, and he's kind of
Speaker 2: talking about the challenges of trying to be as active
Speaker 2: as possible, yes, while also not compromising entirely on the
Speaker 2: things that he enjoys in life, like eating out.
Speaker 4: Yeah.
Speaker 1: Absolutely, he's a Bob Vivarce. He just is such a
Speaker 1: great writer also that he often goes back to, you know,
Speaker 1: ancient texts, which I just love. You know, he brings
Speaker 1: up lots of kind of Roman writers and he's got
Speaker 1: all sorts of interesting quotes that he includes in kind
Speaker 1: of philosophical thinking. But it was based on science because
Speaker 1: he was looking at this recent scientific study that anybody
Speaker 1: who might be a little bit older have probably spotted,
Speaker 1: which is that apparently we age at certain points. It
Speaker 1: doesn't sort of happen gradually, but around the age of
Speaker 1: forty four and around the age of sixty, you can
Speaker 1: kind of age quite rapidly, so he was trying to
Speaker 1: reverse that target and just.
Speaker 2: Like that effect, you know, and just like that, you're
Speaker 2: feeling much older than perhaps you were last week or
Speaker 2: the week before. There's great advice in there though from
Speaker 2: Horod too, and essentially, I mean a lot of it
Speaker 2: just comes down to don't give up and doing a
Speaker 2: little is better than doing nothing at all. And you
Speaker 2: will put a link to the piece in our show notes.
Speaker 2: It's a great read this morning.
Speaker 1: Now let's bring you more on our top story. So
Speaker 1: the EU is preparing to step up contacts with the
Speaker 1: likes of Canada and Japan after Donald Trump threatened to
Speaker 1: impose tariffs of thirty percent on its exports. EU Trade
Speaker 1: Minister is a meeting in Bussels today to discuss the
Speaker 1: latest our Bussels Bureau chief Suzanne Lynch is joining us
Speaker 1: now for more. Susan, good morning. What do we know
Speaker 1: about the latest steps that the EU is planning. Is
Speaker 1: this about trying to form alliances against the US?
Speaker 3: Well, we reported late last night that the EU is
Speaker 3: preparing to step up engagement with other countries that are
Speaker 3: hit by the Trump tariffs. Mainly, it seemed after this
Speaker 3: week of Donald Trump digging down on his trade rhetoric,
Speaker 3: sending those letters to various trading partners, and then at
Speaker 3: the weekend announcing or threatening the European Union and Mexico
Speaker 3: with new tariffs. So we know that there is plan
Speaker 3: out coordinate a lot better on this. But at the
Speaker 3: same time, we've got the EU at the other hand,
Speaker 3: signally quite strongly by Ursula vonderlyon on Sunday that they
Speaker 3: don't want to escalate at the moment, and that they're
Speaker 3: holding back implementing any more countermeasures until they try and
Speaker 3: get some kind of a deal before this new August
Speaker 3: first deadline.
Speaker 2: Suzan, talk to us about the strategy that the EU
Speaker 2: is taking here, Because the decision not to retaliate is
Speaker 2: a choice, does it indicate that they are hopeful that
Speaker 2: progress can be made between now and the first of August.
Speaker 3: Well, it's interesting timing because today, as you mentioned, EU
Speaker 3: trade ministers are meeting here in Brussels, but today is
Speaker 3: also the deadline by which as suspended tariffs on stealing
Speaker 3: aluminum expire. So the EU had a choice today as
Speaker 3: it happens, whether to extend that suspension or to enact
Speaker 3: that suspension again. And those tariffs again. So we've heard
Speaker 3: very strongly from vonder lyon that at the moment today
Speaker 3: the EU won't do that that it will allow that
Speaker 3: suspension to continue. So it did have that option if
Speaker 3: you like, and they have chosen not to do that. Now,
Speaker 3: what it's interesting is that we you know, we're hearing that,
Speaker 3: for example, from President Macron. If you look at the
Speaker 3: language he used on Saturday when he responded to this
Speaker 3: kind of shock move by Trump. He talked about the
Speaker 3: fact that the Commission has to protect European interests. He
Speaker 3: talked about preparing series of countermeasures, including this trade tool
Speaker 3: called the anti coercion instruments that could you know, allow
Speaker 3: the EU to hit back even stronger. He mentioned those things. Now,
Speaker 3: the EU hasn't gone there yet, and I say it
Speaker 3: is at this moment deciding not to go any further.
Speaker 3: But it will be interesting to see, you know, if
Speaker 3: there is some pushback now today when EU trade ministers
Speaker 3: meeting that some countries perhaps believe, look, the EU needs
Speaker 3: to be stronger on this because you know, as we've
Speaker 3: discussed before, the EU does have these other measures that
Speaker 3: can take It has other sanctions that it can implement
Speaker 3: if it chooses to do so.
Speaker 1: Okay, well, let's watch that closely. Suzanne, thank you so
Speaker 1: much for being with us this morning. That is Bloomberg's
Speaker 1: Brussels pier A chief, Suzanne Lynch.
Speaker 2: The move to ramp up defense spending in Europe is
Speaker 2: presenting an opportunity for the gripp and Jet, made by
Speaker 2: Sweden's SAAB. The company hasn't secured an export order since
Speaker 2: twenty fourteen, but that might be about to change. Our
Speaker 2: reporter Christopher Youngstadt joins us now for more from Stockholm. Christopher,
Speaker 2: good morning. Is this the moment then for the Grip
Speaker 2: and fighter jet?
Speaker 4: It should does look like it's a moment definitely. As
Speaker 4: you mentioned, it's been over a decade since saw one
Speaker 4: a major export order for it. It's grouping chats, but
Speaker 4: in the past year both Thailand and Columbia have decided
Speaker 4: that they do want to place orders and these are
Speaker 4: now being negotiated with SAB targeting deals being finalized this
Speaker 4: year and the next in line could be ordered from
Speaker 4: Peru and the Philippines, with Brazil potentially also boosting its
Speaker 4: existing contract for thirty six jets by twenty five percent.
Speaker 4: And as SAB CEO Michael Johansson said in his typical
Speaker 4: understated fashion, it's been a while since the company was
Speaker 4: in such an intensive period on the glip in front.
Speaker 1: Well, lot Keith Martin's F thirty five fighter jets of
Speaker 1: course of dominated order books in Europe, but here too,
Speaker 1: countries sort of looking for alternatives.
Speaker 4: Right, Yeah, Thirteen European countries are our current F thirty
Speaker 4: five customers, and that's including Sweden's neighbors Norway, Denmark and Finland,
Speaker 4: while SAB in its turn, has just leased griepin jet
Speaker 4: to the Czech Republic and Hungary. The fact that Sweden
Speaker 4: hasn't been a NATO member has historically been one of
Speaker 4: their competitor's main arguments for not buying the Glippen, but
Speaker 4: with Sweden now a member, that's of course gone from
Speaker 4: their playbooks. What's potentially an even bigger change, however, is
Speaker 4: the foreign policy shift of the Trumpet administration, pulling back
Speaker 4: support as we all know, for Ukraine and raising doubts
Speaker 4: about US commitment to Europe's defense, which is quite frankly
Speaker 4: uncharted territory for European leaders.
Speaker 2: So what's the hope then, in terms of new orders
Speaker 2: for the GREEP and JATA and for SAB that makes
Speaker 2: it well.
Speaker 4: SAW executives have long emphasized that the procurement of a
Speaker 4: fighter jet is as much a political process as it
Speaker 4: is a purely technical one. Buying weapons and military gear
Speaker 4: from the US has long been viewed as a fool
Speaker 4: proof method to reach guaranteed friendship and support, but that
Speaker 4: is now, of course no longer the case, with some
Speaker 4: security analysts believing that trust in the US will never
Speaker 4: go back to pre Trump levels. Consequently, European countries are
Speaker 4: now trying to tow the line between lessening their dependence
Speaker 4: on the US and maintaining a healthy relationship as allies.
Speaker 4: Some are starting to consider jewel fleets, that is, mixing
Speaker 4: European made fighters with their thirty fives and this to
Speaker 4: make up for a potentially lower level of US air
Speaker 4: support in the reas, and some analysts expect European countries
Speaker 4: to spend a far smaller portion of its defense spending
Speaker 4: on US equipment over time, as such supplies more of
Speaker 4: a song fighter aircarecraft.
Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the
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Speaker 1: I'm Caroline Hepka and.
Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all
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Speaker 2: on Bloomberg Daybreak Europe