1
00:00:00,120 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,680 --> 00:00:12,280
Speaker 2: This is the Blueberg Day BAC you at podcast. Good Morning.

3
00:00:12,320 --> 00:00:15,960
Speaker 3: It's Tuesday, the fifteenth of July. I'm Caroline Hepkat in London.

4
00:00:15,840 --> 00:00:19,560
Speaker 4: And I'm Stephen Caroline Brussels. Coming up today, the UK's Chancellor,

5
00:00:19,640 --> 00:00:22,520
Speaker 4: Rachel Reeves will face the city for her first major

6
00:00:22,560 --> 00:00:26,079
Speaker 4: speech since her tearful appearance in Parliament sparked a bond

7
00:00:26,120 --> 00:00:27,120
Speaker 4: market sell off.

8
00:00:27,880 --> 00:00:31,600
Speaker 3: Nvidia gets the green light to resume certain AI chip

9
00:00:31,680 --> 00:00:35,400
Speaker 3: sales to China after a dramatic White House reversal.

10
00:00:35,880 --> 00:00:39,479
Speaker 4: Plus targeting Boeing and Bourbon, the EU finalizes a new

11
00:00:39,520 --> 00:00:43,599
Speaker 4: Tara retaliation list hitting American goods worth eighty four billion

12
00:00:43,680 --> 00:00:46,640
Speaker 4: dollars if a trade deal can't be reached.

13
00:00:47,240 --> 00:00:49,360
Speaker 2: Let's start with a roundup of our top stories.

14
00:00:49,520 --> 00:00:52,520
Speaker 4: Britain's Chancellor, Rachel Reeves will pledge to cut red tape

15
00:00:52,520 --> 00:00:55,560
Speaker 4: in her annual speech to London's financial sector in a

16
00:00:55,600 --> 00:00:58,680
Speaker 4: bid to help drive the government's growth plans. Reeves is

17
00:00:58,720 --> 00:01:01,400
Speaker 4: expected to say that dial up risk will allow more

18
00:01:01,520 --> 00:01:05,440
Speaker 4: families access to mortgages. It'll be the Chancellor's first major

19
00:01:05,480 --> 00:01:08,520
Speaker 4: public speech since UK assets sold off less than two

20
00:01:08,560 --> 00:01:12,319
Speaker 4: weeks ago when she appeared visibly upset in Parliament, but

21
00:01:12,440 --> 00:01:15,399
Speaker 4: since then the city has grown increasingly wary of taxes.

22
00:01:15,440 --> 00:01:17,759
Speaker 4: Down the line Bloomberg James Wilcock has the.

23
00:01:17,720 --> 00:01:23,160
Speaker 5: Story Chancellor Reeves's mansion house dinner could be mistaken for tapass.

24
00:01:23,600 --> 00:01:26,080
Speaker 5: There are many small plates on offer to the financial

25
00:01:26,120 --> 00:01:30,640
Speaker 5: sector at concierge servers for international investors, reforms to the

26
00:01:30,640 --> 00:01:34,280
Speaker 5: financial lombudsman and a new captive insurance regime, and the

27
00:01:34,280 --> 00:01:36,959
Speaker 5: city has been teased with hopes for a review of

28
00:01:37,000 --> 00:01:41,000
Speaker 5: ring fencing rules and possibly an entrepreneur's visa system. But

29
00:01:41,120 --> 00:01:45,399
Speaker 5: despite these tasty morsels around deregulation and growth, many in

30
00:01:45,400 --> 00:01:48,559
Speaker 5: the world of finance see the government's fiscal worries wonder

31
00:01:48,560 --> 00:01:50,720
Speaker 5: if the bill is going to be coming later in

32
00:01:50,760 --> 00:01:54,440
Speaker 5: the autumn budget in London James Orcock Bloomberg Radio.

33
00:01:55,360 --> 00:01:58,160
Speaker 3: Well. The Chancellor's speech comes as the UK economy shows

34
00:01:58,200 --> 00:02:01,560
Speaker 3: more signs of rebounding from its recent slump. June's retail

35
00:02:01,640 --> 00:02:04,840
Speaker 3: sales figures rose by three point one percent from a

36
00:02:04,920 --> 00:02:08,400
Speaker 3: year earlier, according to data from the British Retail Consortium.

37
00:02:08,680 --> 00:02:13,040
Speaker 3: It's a positive signal after US tariffs, tax increases, and

38
00:02:13,120 --> 00:02:17,240
Speaker 3: a minimum wage hike drove back to back contractions in

39
00:02:17,240 --> 00:02:20,080
Speaker 3: retail sales in April and May, in.

40
00:02:20,200 --> 00:02:23,440
Speaker 4: Vidios preparing to resume sales of high end AI chips

41
00:02:23,480 --> 00:02:26,560
Speaker 4: to China after getting the green light from the Trump administration.

42
00:02:27,080 --> 00:02:30,520
Speaker 4: The H twenty chip was designed specifically by Nvidia to

43
00:02:30,600 --> 00:02:34,359
Speaker 4: comply with earlier US trade restrictions, but has been banned

44
00:02:34,400 --> 00:02:38,120
Speaker 4: from sale in the country since April. In a blog post,

45
00:02:38,240 --> 00:02:40,880
Speaker 4: the tech giant says that US officials have now told

46
00:02:40,919 --> 00:02:44,519
Speaker 4: them they will approve export licenses. Gene Monster of Deep

47
00:02:44,520 --> 00:02:47,360
Speaker 4: Water Asset Management says the move comes after weeks of

48
00:02:47,440 --> 00:02:50,120
Speaker 4: thawing relations between Beijing and Washington.

49
00:02:51,480 --> 00:02:54,960
Speaker 6: My suspicion is that some of the semi trade truth

50
00:02:55,040 --> 00:02:57,359
Speaker 6: I'm creating luckdin' given everything that's going on to call

51
00:02:57,400 --> 00:02:59,799
Speaker 6: it that, but that we have seen between the US

52
00:02:59,840 --> 00:03:03,519
Speaker 6: and China probably laid the groundwork a few weeks ago

53
00:03:03,600 --> 00:03:06,480
Speaker 6: that this in fact was going to happen with Nvidio.

54
00:03:06,520 --> 00:03:09,160
Speaker 6: And so what does it mean. What is the Trump

55
00:03:09,280 --> 00:03:13,040
Speaker 6: administration essentially saying is that they have to give something

56
00:03:13,120 --> 00:03:13,920
Speaker 6: to get something.

57
00:03:15,040 --> 00:03:18,440
Speaker 4: Gene Monster adds the US reversal as a significant win

58
00:03:18,560 --> 00:03:22,040
Speaker 4: for Nvidia CEO jens and huang He had previously branded

59
00:03:22,160 --> 00:03:25,280
Speaker 4: Washington's chip curbs of failure that fueled the rise of

60
00:03:25,360 --> 00:03:28,079
Speaker 4: Huawei and other Chinese AI rivals.

61
00:03:29,360 --> 00:03:30,359
Speaker 2: Some more data now.

62
00:03:30,480 --> 00:03:33,640
Speaker 3: China's economy grew faster than expected in the second quarter.

63
00:03:33,840 --> 00:03:37,680
Speaker 3: GDP rose by five point two percent, after again a

64
00:03:37,800 --> 00:03:40,440
Speaker 3: five point four percent in the first three months of

65
00:03:40,480 --> 00:03:45,080
Speaker 3: the year. However, strong exports to markets outside the US

66
00:03:45,480 --> 00:03:50,440
Speaker 3: mass deepening pressure from weak domestic demand within China. Despite

67
00:03:50,440 --> 00:03:54,680
Speaker 3: a raft of government subsidies, excess manufacturing capacity and weak

68
00:03:54,720 --> 00:03:59,200
Speaker 3: confidence in the property sector continued to suppress Chinese consumption.

69
00:04:00,880 --> 00:04:04,040
Speaker 4: US President Donald Trump has threatened to impose severe tariffs

70
00:04:04,080 --> 00:04:06,880
Speaker 4: on Russia if it does not end the war with Ukraine.

71
00:04:07,240 --> 00:04:10,280
Speaker 4: The news comes as the US pledges fresh weapons supplies

72
00:04:10,320 --> 00:04:12,800
Speaker 4: for Kiev, which Trump says will be paid for by

73
00:04:12,880 --> 00:04:16,560
Speaker 4: NATO member states. Speaking during a meeting with NATO's Secretary

74
00:04:16,600 --> 00:04:19,200
Speaker 4: General at the White House, Trump set out a timeline

75
00:04:19,200 --> 00:04:20,240
Speaker 4: for the Russian president.

76
00:04:20,920 --> 00:04:24,720
Speaker 6: I'm disappointed in President Putin because I thought we would

77
00:04:24,720 --> 00:04:25,880
Speaker 6: have had a deal two months ago.

78
00:04:25,920 --> 00:04:28,640
Speaker 1: But if it doesn't seem to get there, so.

79
00:04:28,720 --> 00:04:31,080
Speaker 6: Based on that, we're going to be doing secondary tariffs.

80
00:04:31,120 --> 00:04:32,680
Speaker 1: If we don't have a deal on fifty days. It's

81
00:04:32,760 --> 00:04:35,200
Speaker 1: very simple, and they'll be at one hundred percent.

82
00:04:36,120 --> 00:04:39,160
Speaker 4: President Trump, speaking during a meeting With's Mark Rutta there

83
00:04:39,440 --> 00:04:42,120
Speaker 4: Matt Whitaker, the US ambassador to NATO, says the planned

84
00:04:42,200 --> 00:04:46,080
Speaker 4: action effectively represents secondary sanctions on countries that are buying

85
00:04:46,080 --> 00:04:49,440
Speaker 4: oil from Russia. The President didn't elaborate on the powers

86
00:04:49,440 --> 00:04:51,919
Speaker 4: he would use to impose those tariffs, but said he

87
00:04:52,000 --> 00:04:54,520
Speaker 4: wasn't sure if congressional approval would be needed.

88
00:04:55,600 --> 00:04:59,320
Speaker 3: Bloomberg understands that the European Union has finalized a second

89
00:04:59,360 --> 00:05:03,679
Speaker 3: list of US US tariff countermeasures, targeting goods worth seventy

90
00:05:03,720 --> 00:05:08,000
Speaker 3: two billion euros. The list includes Boeing aircraft and bourbon,

91
00:05:08,120 --> 00:05:12,200
Speaker 3: as well as additional duties on machinery products, chemicals and plastics,

92
00:05:12,320 --> 00:05:16,880
Speaker 3: medical devices, wines, and other agricultural goods. Our Senior White

93
00:05:16,880 --> 00:05:21,279
Speaker 3: House correspondent josh Win Grove says Europe is a significant

94
00:05:21,320 --> 00:05:23,240
Speaker 3: market for President Trump.

95
00:05:23,520 --> 00:05:26,160
Speaker 7: And the question is, of course, will they land somewhere

96
00:05:26,279 --> 00:05:28,440
Speaker 7: or will Trump look at wherever they are in a

97
00:05:28,440 --> 00:05:31,200
Speaker 7: week or two and think that that's either not enough

98
00:05:31,200 --> 00:05:33,520
Speaker 7: and stick with the thirty percent, or it is enough

99
00:05:33,520 --> 00:05:35,320
Speaker 7: and go to a lower number. Remember, of course, the

100
00:05:35,320 --> 00:05:38,080
Speaker 7: baseline number right now is ten percent. He initially announced

101
00:05:38,120 --> 00:05:42,520
Speaker 7: twenty percent on Europe in the initial Liberation Day tariffs.

102
00:05:42,760 --> 00:05:45,680
Speaker 7: He's threatened as high as fifty percent on Europe and

103
00:05:45,800 --> 00:05:47,640
Speaker 7: is always you know, that's been kind of one of

104
00:05:47,680 --> 00:05:49,599
Speaker 7: the top of the list places that he's complained about

105
00:05:49,600 --> 00:05:51,800
Speaker 7: when he talks about unfair trade relationships.

106
00:05:52,440 --> 00:05:57,239
Speaker 3: Bloomberg's Josh Wingrove there on Trump's EU tariff plans. EU

107
00:05:57,279 --> 00:06:00,880
Speaker 3: member states still need to give their approval before the

108
00:06:01,000 --> 00:06:04,840
Speaker 3: European list is adopted. The measures are a response to

109
00:06:04,880 --> 00:06:08,640
Speaker 3: President Trump's earlier so called reciprocal tariff of twenty percent

110
00:06:08,720 --> 00:06:12,320
Speaker 3: hitting most goods, and the additional levies on cars and

111
00:06:12,440 --> 00:06:16,200
Speaker 3: car parts of twenty five percent. The universal rate was

112
00:06:16,360 --> 00:06:20,640
Speaker 3: later temporarily lowered to ten percent to allow negotiations to

113
00:06:20,680 --> 00:06:21,320
Speaker 3: take place.

114
00:06:22,400 --> 00:06:25,680
Speaker 4: France's Prime Minister with Atlanta planned today to sharply narrow

115
00:06:25,680 --> 00:06:29,080
Speaker 4: the country's budget deficit. The move by Francois Bayrus sets

116
00:06:29,080 --> 00:06:32,280
Speaker 4: the stage for a parliamentary battle at risks triggering another

117
00:06:32,360 --> 00:06:35,840
Speaker 4: government collapse. Prime Minster will present details of around forty

118
00:06:35,920 --> 00:06:39,480
Speaker 4: billion euros and spending cuts and tax increases for next year.

119
00:06:39,920 --> 00:06:42,679
Speaker 4: The proposals are aimed at shrinking the Euro Area's largest

120
00:06:42,720 --> 00:06:46,760
Speaker 4: budget gap, as France's fiscal difficulties continue to rattle bond markets.

121
00:06:47,000 --> 00:06:50,039
Speaker 4: Earlier this month, the country's five year bond yield surpassed

122
00:06:50,080 --> 00:06:52,640
Speaker 4: Italy's for the first time in twenty years.

123
00:06:53,520 --> 00:06:55,840
Speaker 3: And those are our top stories for you this morning.

124
00:06:56,000 --> 00:06:58,520
Speaker 3: So let's think about markets which are really focused on

125
00:06:58,560 --> 00:07:01,160
Speaker 3: the US inflation data. There are a number of other

126
00:07:01,240 --> 00:07:04,160
Speaker 3: countries reporting CPI, but the US is the most significant,

127
00:07:04,160 --> 00:07:06,679
Speaker 3: coming out at one thirty pm. Clues on the impact

128
00:07:06,680 --> 00:07:11,440
Speaker 3: of Trump tariffs in June and the direction of course

129
00:07:11,480 --> 00:07:14,840
Speaker 3: of interest rates. In terms of the market response, at

130
00:07:14,840 --> 00:07:17,280
Speaker 3: the moment, the MSCI Aged Pacificate Index has been swinging

131
00:07:17,320 --> 00:07:18,480
Speaker 3: between small gains.

132
00:07:18,200 --> 00:07:19,880
Speaker 2: And losses, so a lot of hesitation.

133
00:07:20,280 --> 00:07:22,800
Speaker 3: Japan's ten year government bond yields are climbing to its

134
00:07:22,840 --> 00:07:25,880
Speaker 3: highest level since two thousand and eight. You've also got

135
00:07:25,960 --> 00:07:29,680
Speaker 3: corporate earning season, though really taking whole jp Morgan Chase, Wells,

136
00:07:29,720 --> 00:07:32,680
Speaker 3: Fargo City and black Rock all due to report today

137
00:07:32,760 --> 00:07:36,040
Speaker 3: subdue their expectations, so do we see some big beats there?

138
00:07:36,400 --> 00:07:38,360
Speaker 3: And Bitcoin, we saw a surge above one hundred and

139
00:07:38,400 --> 00:07:41,760
Speaker 3: twenty thousand dollars on Monday. We are below that one

140
00:07:41,840 --> 00:07:45,640
Speaker 3: hundred and seventeen thousand this morning, so pretty incredible run

141
00:07:45,680 --> 00:07:48,120
Speaker 3: though for bitcoin over the course of this year is

142
00:07:48,200 --> 00:07:50,400
Speaker 3: something like twenty seven percent.

143
00:07:50,640 --> 00:07:51,680
Speaker 2: Those are the markets.

144
00:07:52,000 --> 00:07:54,480
Speaker 4: In a moment, we'll look ahead to tonight's imagine how

145
00:07:54,520 --> 00:07:56,240
Speaker 4: speech and the Chancellor. I'm bringing you the latest on

146
00:07:56,280 --> 00:07:59,280
Speaker 4: the UUs trade dispute with the story we've been reading

147
00:07:59,400 --> 00:08:01,440
Speaker 4: this morning now, Carla, it's been a long time since

148
00:08:01,520 --> 00:08:03,800
Speaker 4: I owned a car. Whatever to my rent one. I

149
00:08:03,800 --> 00:08:07,080
Speaker 4: am sort of mystified by the block of plastic that

150
00:08:07,120 --> 00:08:10,600
Speaker 4: I could handle the counter because keys are out, fobs

151
00:08:10,600 --> 00:08:13,160
Speaker 4: are in. Everyone else knows this except me like you,

152
00:08:13,200 --> 00:08:15,960
Speaker 4: who drives regularly. But apparently this is something that now

153
00:08:15,960 --> 00:08:19,400
Speaker 4: has become a key design feature of high end cars

154
00:08:19,400 --> 00:08:19,800
Speaker 4: as well.

155
00:08:20,160 --> 00:08:23,280
Speaker 3: I love how this is described in Hannah Elliott's piece.

156
00:08:23,400 --> 00:08:24,520
Speaker 2: It's like the handshake.

157
00:08:24,840 --> 00:08:27,080
Speaker 3: You know, it gives you a little taste of what

158
00:08:27,120 --> 00:08:29,760
Speaker 3: the car design is all about. You know, get it

159
00:08:29,800 --> 00:08:33,280
Speaker 3: wrong and you can be severely punished by by drivers

160
00:08:33,320 --> 00:08:35,319
Speaker 3: as you say yes, I think if you see even

161
00:08:35,360 --> 00:08:38,640
Speaker 3: as the ultimate car free European city dweller.

162
00:08:39,120 --> 00:08:42,680
Speaker 4: While Shelton's love cars, so you know, maybe maybe things

163
00:08:42,720 --> 00:08:44,680
Speaker 4: will change now that I'm in Brussels, you know, maybe

164
00:08:44,679 --> 00:08:47,079
Speaker 4: I'll be finally tempted back onto the roads. But I

165
00:08:47,280 --> 00:08:49,280
Speaker 4: like some of the designs in this piece of the

166
00:08:49,920 --> 00:08:52,880
Speaker 4: kind of the fancy fobs are incredible, Like there's a

167
00:08:52,920 --> 00:08:55,200
Speaker 4: Bentley one there, there's the Lotus pebble which is sort

168
00:08:55,200 --> 00:08:57,640
Speaker 4: of a triangle. You know, there's a lot of effort

169
00:08:57,640 --> 00:09:00,240
Speaker 4: now being put into designing what these things look like.

170
00:09:00,280 --> 00:09:01,720
Speaker 4: They're meant to be a reflected to the vehicle. They

171
00:09:01,760 --> 00:09:04,040
Speaker 4: don't always get it right. Hannah Elliott points at points

172
00:09:04,040 --> 00:09:06,240
Speaker 4: out as well and that there was a recent Cadillac

173
00:09:06,280 --> 00:09:07,960
Speaker 4: model that kind of didn't go down very well because

174
00:09:07,960 --> 00:09:10,040
Speaker 4: it was essentially just a plastic piece in a little

175
00:09:10,080 --> 00:09:14,640
Speaker 4: leather wallet. People didn't feel reflected the luxury of the car.

176
00:09:14,600 --> 00:09:17,080
Speaker 3: And that probably the price tag as well. I mean, look,

177
00:09:17,120 --> 00:09:20,280
Speaker 3: even the keyfob though, might be going extinct because actually

178
00:09:20,360 --> 00:09:22,800
Speaker 3: loads of the high end cars just have apps.

179
00:09:22,880 --> 00:09:26,320
Speaker 4: Now open it with your mind, Caroline, that's the next step.

180
00:09:26,559 --> 00:09:28,720
Speaker 4: I think you can read Hanna's piece on Blueberg Dot

181
00:09:28,760 --> 00:09:30,240
Speaker 4: comment on the terminal. We'll put a link to the

182
00:09:30,360 --> 00:09:33,320
Speaker 4: article in our show notes as well. But the Chancellor

183
00:09:33,400 --> 00:09:36,199
Speaker 4: rach To Reevees makes her annual speech to London's financial

184
00:09:36,200 --> 00:09:38,680
Speaker 4: industry later at Mansion House, a key moment for the

185
00:09:38,720 --> 00:09:40,920
Speaker 4: sector but also for the Chancellor for herself after the

186
00:09:40,920 --> 00:09:44,319
Speaker 4: recent market jitters over her future. Our financial porter Leo

187
00:09:44,360 --> 00:09:46,880
Speaker 4: kenscherper joins us now for more Leo, good morning. What

188
00:09:46,960 --> 00:09:49,640
Speaker 4: are the key announcements then we're expecting from the Chancellor?

189
00:09:50,440 --> 00:09:51,439
Speaker 8: Good morning, Stephen.

190
00:09:51,880 --> 00:09:52,080
Speaker 6: Yes.

191
00:09:52,120 --> 00:09:55,560
Speaker 8: So ahead of Rachel reeves annual mention, how speech in

192
00:09:55,600 --> 00:09:58,520
Speaker 8: the city, the Chancellor will actually be in Leeds first

193
00:09:58,640 --> 00:10:02,599
Speaker 8: first off and reveal measures to increase home ownership, and

194
00:10:02,080 --> 00:10:04,960
Speaker 8: she will reveal I think you said earlier as well

195
00:10:05,240 --> 00:10:08,760
Speaker 8: a permanent mortgage guarantee scheme and also more home loans

196
00:10:08,760 --> 00:10:11,360
Speaker 8: for people on lower incomes. And then when she's in

197
00:10:11,360 --> 00:10:14,880
Speaker 8: the city tonight she is going to announce a, among

198
00:10:15,040 --> 00:10:18,839
Speaker 8: various other things, a concierge service for international investors who

199
00:10:18,840 --> 00:10:22,160
Speaker 8: want to put money into the UK, and that service

200
00:10:22,200 --> 00:10:26,360
Speaker 8: will sort of help them navigate issues around visas and regulation.

201
00:10:26,920 --> 00:10:30,600
Speaker 8: Another key measure that's hotly anticipated by many in the

202
00:10:30,600 --> 00:10:34,360
Speaker 8: city is cutting the burden of the senior managers and

203
00:10:34,400 --> 00:10:39,559
Speaker 8: certification regime, basically making it easier for financial institutions to

204
00:10:39,600 --> 00:10:44,240
Speaker 8: appoint senior managers and shortening the regulatory review from three

205
00:10:44,320 --> 00:10:46,600
Speaker 8: to two months. Those are some of the measures that

206
00:10:46,640 --> 00:10:47,720
Speaker 8: I expected tonight.

207
00:10:48,200 --> 00:10:52,120
Speaker 3: Yeah, okay, so what are we expecting then? And might

208
00:10:52,280 --> 00:10:56,360
Speaker 3: we get any announcements on tax because that's the other

209
00:10:56,559 --> 00:10:57,679
Speaker 3: big worry.

210
00:10:58,080 --> 00:11:02,160
Speaker 8: Yes, exactly, that's the big one. So our understanding is

211
00:11:02,360 --> 00:11:06,280
Speaker 8: to not expect any announcements on text, but any signaling

212
00:11:06,800 --> 00:11:12,280
Speaker 8: around wealth taxes non norm Texas. Potential backtracking here would

213
00:11:12,360 --> 00:11:15,120
Speaker 8: most likely be the biggest story out of the Dimensional

214
00:11:15,120 --> 00:11:17,079
Speaker 8: House speech. You know, when I was talking to people

215
00:11:17,080 --> 00:11:21,040
Speaker 8: in the city asking them what they expect tonight, they

216
00:11:21,040 --> 00:11:23,520
Speaker 8: they would always ask ask the question back, you know,

217
00:11:23,559 --> 00:11:26,240
Speaker 8: well what are you hearing about wealth Texas? You know,

218
00:11:26,280 --> 00:11:29,040
Speaker 8: that's definitely a big thorn in the side for many

219
00:11:29,040 --> 00:11:31,760
Speaker 8: people in the city. The Lord Mayor Alistair King, who

220
00:11:31,840 --> 00:11:34,280
Speaker 8: is hosting a dinner tonight, told us a few weeks

221
00:11:34,280 --> 00:11:37,040
Speaker 8: ago that the government really needs to stop the non

222
00:11:37,080 --> 00:11:40,679
Speaker 8: dom exodus and many expect the Treasury to act eventually,

223
00:11:41,000 --> 00:11:42,240
Speaker 8: but probably not today.

224
00:11:43,520 --> 00:11:47,240
Speaker 4: How significant is this moment for Rachel Reeves after we

225
00:11:47,320 --> 00:11:49,120
Speaker 4: had that recent Guild market sellaff.

226
00:11:50,000 --> 00:11:54,240
Speaker 8: Yeah, it's a good question. So it definitely is a

227
00:11:54,280 --> 00:11:57,240
Speaker 8: big moment for her. I'd say not necessarily for the

228
00:11:57,280 --> 00:12:00,840
Speaker 8: guild market, because they are on no physical mat just expected.

229
00:12:01,679 --> 00:12:03,960
Speaker 8: I was talking to Guild market participants and they're not

230
00:12:04,000 --> 00:12:06,959
Speaker 8: necessarily waiting with bated breath for what Rees is going

231
00:12:07,000 --> 00:12:10,000
Speaker 8: to say. But I think it's key for her to

232
00:12:10,040 --> 00:12:14,400
Speaker 8: maintain her support from people in the city, from executives.

233
00:12:14,440 --> 00:12:16,280
Speaker 8: She was off to a good start, you know, praised

234
00:12:16,280 --> 00:12:20,160
Speaker 8: by CEOs of asset managers for instance, for her growth agenda,

235
00:12:20,600 --> 00:12:24,800
Speaker 8: but the Nondum exodus and also relatively slow movement around

236
00:12:24,840 --> 00:12:28,600
Speaker 8: issues such as the reform of ISAs the individual savings

237
00:12:28,600 --> 00:12:32,319
Speaker 8: accounts that has definitely irritated some of her early supporters

238
00:12:32,320 --> 00:12:32,840
Speaker 8: in the city.

239
00:12:33,440 --> 00:12:34,000
Speaker 2: Interesting.

240
00:12:34,120 --> 00:12:37,000
Speaker 3: Yeah, So Rachel Vee is speaking tonight at the Mansion

241
00:12:37,040 --> 00:12:39,560
Speaker 3: House dinner, but also the Bank of Engan Governor Andrew

242
00:12:39,559 --> 00:12:43,080
Speaker 3: Bailey will be delivering his annual speech at that event too. Lea,

243
00:12:43,160 --> 00:12:45,760
Speaker 3: thank you so much for looking ahead to what's happening today,

244
00:12:45,760 --> 00:12:47,920
Speaker 3: our finance supporter, Leo kensherper.

245
00:12:48,800 --> 00:12:51,320
Speaker 4: Now, the European Union has finalized a second list of

246
00:12:51,360 --> 00:12:55,600
Speaker 4: countermeasures targeting American goods worth seventy two billion euros if

247
00:12:55,679 --> 00:13:00,480
Speaker 4: it decides to retaliate as transatlantic trade tensions intensified. Still

248
00:13:00,480 --> 00:13:03,480
Speaker 4: hopeful the negotiate a deal to avoid the thirty percent

249
00:13:03,559 --> 00:13:06,719
Speaker 4: levy threatened by Donald Trump. Let's bring in our EMAIS

250
00:13:06,760 --> 00:13:10,360
Speaker 4: director Rosaland Matheson for more on this as well. First, Rods,

251
00:13:10,440 --> 00:13:12,679
Speaker 4: just on what we've been hearing from Donald Trump. He's

252
00:13:12,720 --> 00:13:15,320
Speaker 4: indicated he's open to more talks with the EU, but

253
00:13:15,400 --> 00:13:17,680
Speaker 4: is there any sign of actually any progress.

254
00:13:19,120 --> 00:13:21,000
Speaker 9: Well, it does make it a bit harder when Donald

255
00:13:21,040 --> 00:13:25,320
Speaker 9: Trump says that his letters laying out tariffrets are actual deals,

256
00:13:25,440 --> 00:13:26,160
Speaker 9: because they're not.

257
00:13:26,320 --> 00:13:28,800
Speaker 1: It's the US imposing a tariffrate.

258
00:13:28,880 --> 00:13:30,840
Speaker 9: So that's the climate in which a lot of countries

259
00:13:31,200 --> 00:13:34,199
Speaker 9: are trying to negotiate or work out how to negotiate

260
00:13:34,240 --> 00:13:36,839
Speaker 9: with the US and the path forward. There's been lots

261
00:13:36,880 --> 00:13:39,640
Speaker 9: of rounds of talks between the EU and the US

262
00:13:39,679 --> 00:13:43,000
Speaker 9: there and more to come. Are The EU trade negotiator

263
00:13:43,600 --> 00:13:46,679
Speaker 9: Mara Tetkovich was due to talk last night with the

264
00:13:46,760 --> 00:13:50,760
Speaker 9: US Commerce Secretary how Latnik, so we'll see how that went.

265
00:13:50,840 --> 00:13:52,960
Speaker 9: He's also warned that while they have to prepare for

266
00:13:53,000 --> 00:13:56,280
Speaker 9: all outcomes, that this proposed duty, he's said, is quite

267
00:13:56,320 --> 00:13:57,720
Speaker 9: effectively prohibitive.

268
00:13:58,200 --> 00:14:01,600
Speaker 1: For transatlantic trade. The preference is still for a deal.

269
00:14:02,000 --> 00:14:03,720
Speaker 1: I mean, it's wrangling between the EU.

270
00:14:03,880 --> 00:14:05,960
Speaker 9: Some of the bigger states are saying, should we do

271
00:14:06,000 --> 00:14:07,839
Speaker 9: a deal for the sake of it? Should we insist

272
00:14:07,880 --> 00:14:10,080
Speaker 9: it have to be a good one no matter what.

273
00:14:10,200 --> 00:14:12,160
Speaker 9: But the general feeling is they want a deal, they

274
00:14:12,240 --> 00:14:16,040
Speaker 9: want to avoid tipping into it even bigger trade conflict.

275
00:14:16,080 --> 00:14:18,400
Speaker 1: And that's very much also the view that they're getting

276
00:14:18,400 --> 00:14:19,720
Speaker 1: from business in the EU.

277
00:14:20,720 --> 00:14:23,920
Speaker 3: Yeah, let's see, of course how long maybe that lasts,

278
00:14:24,000 --> 00:14:26,760
Speaker 3: because the EU has been very careful not to antagonize

279
00:14:26,880 --> 00:14:30,680
Speaker 3: President Trump with retaliation so far. But let's see if

280
00:14:30,680 --> 00:14:33,760
Speaker 3: that is a strategy that continues or not. I also

281
00:14:33,760 --> 00:14:35,600
Speaker 3: want a quick word though, on what is going on

282
00:14:35,640 --> 00:14:36,120
Speaker 3: with Russia.

283
00:14:36,160 --> 00:14:37,080
Speaker 2: The US president.

284
00:14:36,880 --> 00:14:40,280
Speaker 3: Has threatened big tariffs on Russia up to one hundred

285
00:14:40,280 --> 00:14:43,800
Speaker 3: percent if it doesn't end hostilities with Ukraine. Now, will

286
00:14:43,840 --> 00:14:46,400
Speaker 3: that tactic work with Vladimir Putin.

287
00:14:46,320 --> 00:14:49,160
Speaker 1: Was well, that is the question. Obviously.

288
00:14:49,160 --> 00:14:51,680
Speaker 9: It's a signal of just how frustrated Donald Trump is

289
00:14:51,680 --> 00:14:54,720
Speaker 9: that there's no movement towards the sesfar in Ukraine, and

290
00:14:54,800 --> 00:14:56,640
Speaker 9: now very much training his sites.

291
00:14:56,320 --> 00:14:57,480
Speaker 1: On Putin In.

292
00:14:57,560 --> 00:14:59,920
Speaker 9: All of that, but the Russian economy is already very

293
00:15:00,000 --> 00:15:03,640
Speaker 9: heavily sanctioned, including by the US. It seems like it

294
00:15:03,640 --> 00:15:05,720
Speaker 9: was a bit unclear what Donald Trump was saying last night,

295
00:15:05,720 --> 00:15:09,240
Speaker 9: but it suggests that he's talking about perhaps further tariffs

296
00:15:09,280 --> 00:15:12,600
Speaker 9: on Russia goods and Russia doesn't export a lot to

297
00:15:12,600 --> 00:15:17,240
Speaker 9: the US, but primarily talking about secondary sanctions which would

298
00:15:17,320 --> 00:15:18,520
Speaker 9: panelize countries like.

299
00:15:18,560 --> 00:15:21,240
Speaker 1: China and India for buying Russian energy.

300
00:15:21,280 --> 00:15:24,040
Speaker 9: Of course, that they bought quite a lot in recent years,

301
00:15:24,080 --> 00:15:26,520
Speaker 9: and that's helped fund the war in Ukraine, and that

302
00:15:26,600 --> 00:15:29,960
Speaker 9: would be a design to squeeze the Russian economy further.

303
00:15:30,400 --> 00:15:32,480
Speaker 9: You'd have to say that with all this pressure that's

304
00:15:32,520 --> 00:15:34,560
Speaker 9: gone on, and Donald Trump's saying that he's talking with

305
00:15:34,640 --> 00:15:37,280
Speaker 9: Vladimir Putin all the time and Vladimir Putin wants a deal,

306
00:15:37,560 --> 00:15:39,960
Speaker 9: there's no great sign that Vladimir Putin wants a deal

307
00:15:40,360 --> 00:15:43,000
Speaker 9: on Ukraine, that he doesn't want to keep pressing on

308
00:15:43,440 --> 00:15:47,760
Speaker 9: with his war aims there regardless, and that's despite many

309
00:15:47,840 --> 00:15:51,880
Speaker 9: years of economic squeeze. With this change his course in Ukraine,

310
00:15:51,920 --> 00:15:54,320
Speaker 9: it's very hard to say would it hurt the Russian

311
00:15:54,360 --> 00:15:57,720
Speaker 9: economy further? Absolutely, but Vladimir Putin seems to be quite

312
00:15:57,720 --> 00:16:00,880
Speaker 9: willing to wear a lot of economic pain to further

313
00:16:00,960 --> 00:16:02,440
Speaker 9: his goals in Ukraine.

314
00:16:03,080 --> 00:16:05,800
Speaker 4: This is Bloomberg Daybreak Europe, your morning brief on the

315
00:16:05,880 --> 00:16:08,920
Speaker 4: stories making news from London to Wall Street and beyond.

316
00:16:09,200 --> 00:16:13,200
Speaker 3: Look for us on your podcast feed every morning, on Apple, Spotify,

317
00:16:13,280 --> 00:16:15,160
Speaker 3: and anywhere else you get your podcasts.

318
00:16:15,280 --> 00:16:18,320
Speaker 4: You can also listen live each morning on London Dab Radio,

319
00:16:18,360 --> 00:16:21,040
Speaker 4: the Bloomberg Business app, and Bloomberg dot Com.

320
00:16:21,080 --> 00:16:23,840
Speaker 3: Our flagship New York station, is also available on your

321
00:16:23,880 --> 00:16:28,600
Speaker 3: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

322
00:16:28,840 --> 00:16:30,120
Speaker 2: I'm Caroline Hepka and.

323
00:16:30,080 --> 00:16:32,720
Speaker 4: I'm Stephen Carroll. Join us again tomorrow morning for all

324
00:16:32,760 --> 00:16:35,160
Speaker 4: the news you need to start your day right here

325
00:16:35,240 --> 00:16:38,760
Speaker 4: on Bloomberg Daybreak Europe