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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybreak europ podcast, available every morning

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Speaker 2: on Apple, Spotify or wherever you listen. It's Tuesday, the

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Speaker 2: eighth of April in London. I'm Stephen Carroll coming up today.

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Speaker 2: China vows to fight to the end as Trump threatens

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Speaker 2: even more trade tariffs. The US President's clashing comments keep

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Speaker 2: investors on edge after a historic stock market sell off,

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Speaker 2: and Ken Griffin calls Trump's latest levies a huge mistake

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Speaker 2: as Apple customers in the US dashed to buy iPhones

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Speaker 2: ahead of tomorrow's fifty four percent levees on Chinese imports.

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Speaker 2: Let's start with a roundup of our top stories. Beijing

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Speaker 2: has vowed to fight to the end after Donald Trump

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Speaker 2: threatened to slap an additional fifty percent tariff on Chinese

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Speaker 2: goods unless it withdraws its retaliation against his earlier levies.

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Speaker 2: Here's what the US President told reporters yesterday.

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Speaker 3: As you know, against my statement, they put a thirty

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Speaker 3: four percent tariff on above what their ridiculous tariffs were already.

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Speaker 3: And I said, if that tariff isn't removed by tomorrow

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Speaker 3: or twelve o'clock we're putting a fifty percent teriff on

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Speaker 3: above the tariffs that we put on.

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Speaker 2: Responding to Trump, the Chinese Commerce Ministry said the US

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Speaker 2: threat to further escalate the trade war is a mistake

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Speaker 2: on top of a mistake, as analysts worn, there's now

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Speaker 2: a risk of the world's two largest economies decoupling. Chetan

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Speaker 2: Aya is Morgan Stanley's chief Asia economist, with.

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Speaker 4: The uncertainty causes a global trade slowdown, and so it's

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Speaker 4: not about China's exports to the US, but if China

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Speaker 4: were to be able to export to other countries by

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Speaker 4: increasing market share and selling them new products and into

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Speaker 4: these new geographies, it's possible when those economies are also

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Speaker 4: doing well. But in an environment where there's going to

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Speaker 4: be a global slowdown, their goods demand in other economies

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Speaker 4: will also be suffering. So China is definitely going to

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Speaker 4: have more pain to take this cycle.

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Speaker 2: Chetenaya's warning comes as China's central bank eased its tight

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Speaker 2: grip on the yuan, weakening the currency's daily reference right

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Speaker 2: past the keenly watched seven to twenty per dollar level.

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Speaker 2: The growing tensions between China and the US come as

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Speaker 2: it shares in Asia rebounded following historic losses on Monday.

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Speaker 2: Trump's push for sweeping tariffs wiped has wiped ten trillion

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Speaker 2: dollars off global equities in less than a week. However,

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Speaker 2: the US president's decision to assign two members of his

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Speaker 2: cabinet to bilateral trade talks with Japan has given market

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Speaker 2: some confidence that levies could be rolled back. Bloomberg Intelligence's

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Speaker 2: chief equity strategist, Gina Martin Adams says, it's hard to

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Speaker 2: be sure that things have bottomed out.

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Speaker 5: I would say that it's the vigorous that not only

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Speaker 5: we see tensions retchetting up with China, but also tensions

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Speaker 5: between the US and the rest of the world continuing

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Speaker 5: to wretch at higher Clearly, we're already seeing downward directionality

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Speaker 5: in terms of estimate visions reflecting the tariffs. Over the

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Speaker 5: course of just the last several weeks, analyst expectations for

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Speaker 5: first half earnings in the twenty twenty five year have

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Speaker 5: dropped from double digits to single digits. So we're already

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Speaker 5: starting to see downward momentum emerge for earnings. But I

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Speaker 5: do fear that it's just the beginning.

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Speaker 2: Gina Mark Nodams. There is the nick A and topics

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Speaker 2: at Stock indexes in Tokyo rose by more than five percent,

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Speaker 2: with futures pointing higher in Europe and in the United States.

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Speaker 2: In a litany of comments about his planned duties on

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Speaker 2: worldwide trading partners, President Trump said he's not looking to

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Speaker 2: pause tariffs, while adding that some deals could be made. Yet,

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Speaker 2: the President offered little clarity about what he's seeking from

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Speaker 2: trading partners in exchange for lowering levy rates, or whether

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Speaker 2: he's willing to offer relief at all.

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Speaker 3: There can be permanent derepts, and there can also be negotiations,

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Speaker 3: because there are things that we need beyond tariff.

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Speaker 2: Trump's seeming vagueness on negotiations came as Treasury secretaries got

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Speaker 2: bess and said that he hopes tariff rates will come

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Speaker 2: down as talks get going with US trading partners.

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Speaker 6: For countries that don't retaliate. We are at a maximum

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Speaker 6: tariff level, and it is my hope that through good negotiations,

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Speaker 6: all we will do is see levels come down, but

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Speaker 6: that's going to depend on the other countries.

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Speaker 2: US Strategy Secretary Scott bess than speaking on Fox Business,

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Speaker 2: He went on to say that almost seventy countries have

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Speaker 2: reached out to the US to negotiate a trade deal.

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Speaker 2: It made the massive market moves. Traders are jumping on

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Speaker 2: any hint of relief from the tariffs. One social media

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Speaker 2: post about a potential pause in the levees sparked a

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Speaker 2: two point five trillion dollar rally on the SMP five hundred,

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Speaker 2: only for it to reverse within fifteen minutes when it

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Speaker 2: turned out not to be true. Bloomberg Exchange Wilcock has more.

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Speaker 2: It all started with this interview, will you.

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Speaker 3: Do a ninety day pause in which you consider that?

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Speaker 7: Or bill?

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Speaker 8: Yet?

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Speaker 6: You know, I think that the President is going to

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Speaker 6: decide what the President is going to decide.

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Speaker 7: That line from the White House Economic Council Director Kevin

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Speaker 7: Hassett sparked speculation on social media that a tariff pause

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Speaker 7: was being considered. One post was picked up by CNBC

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Speaker 7: and routers, sparking a rally on the S and P

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Speaker 7: five hundred that added trillions of dollars to stocks within minutes.

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Speaker 7: That was until the White House shut down, the rumors

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Speaker 7: and the gains were wiped out. It's a coutiary tale

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Speaker 7: showing how volatile markets are right now, but also how

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Speaker 7: desperate some traders are for good news in London. James

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Speaker 7: Wilcock Bloomberg Radio, but you are.

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Speaker 2: Ken Griffin has called the president's latest tariff's a huge

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Speaker 2: policy mistake, citing increased costs for the middle class. Speaking

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Speaker 2: at the University of Miami yesterday, the Citadel founder added

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Speaker 2: his voice to the growing roster of prominent finance executives

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Speaker 2: criticizing the levies. His criticism came as Federal Reserve Bank

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Speaker 2: of Chicago President Austin Goolsby discussed concerns amongst business leaders

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Speaker 2: facing supply disruption and inflationary pressure during an interview at CNN.

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Speaker 9: The anxiety is if the lease tariffs are as big

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Speaker 9: as what are threatened on the US side, and if

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Speaker 9: there's massive retaliation, and then if there's counter retaliation again,

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Speaker 9: it might send us back to the kind of conditions

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Speaker 9: that we saw in twenty one and twenty two when

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Speaker 9: inflation's raging out of control, and it could send us

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Speaker 9: back to the supply disruptions of the format we saw

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Speaker 9: in twenty twenty beginning of covid.

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Speaker 2: Faed's Austin Gilsby speaking there after, FED chair Jerome Power

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Speaker 2: last week signals that he and his colleagues wouldn't rush

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Speaker 2: to react to the tariff news. Inflation sort to a

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Speaker 2: four decade high in twenty twenty two, and the FED

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Speaker 2: raised borrowing costs sharply to combat the price pressures. Your opinion.

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Speaker 2: In trade ministers are ready to deploy countermeasures against US

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Speaker 2: tariffs if needed. Speaking after discussions between member states in

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Speaker 2: Luxembourg yesterday, EU Trade Commissioner Marraschefchevich says other means of

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Speaker 2: resolution would be pursued first well. The EU remains open

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Speaker 2: to and strongly prefers negotiations who will not weigh end

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Speaker 2: endlessly you, Trade Commissioner Marscheftovich, adding that so far efforts

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Speaker 2: to engage with Washington have not yielded a mutually acceptable solution. Meanwhile,

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Speaker 2: the EU has dropped a planned fifty percent retaliatory tariff

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Speaker 2: on American whiskey, instead proposing twenty five percent levees on

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Speaker 2: a selection of US goods. The move is in retaliation

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Speaker 2: for President Trump's levees on steel and aluminium imports, which

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Speaker 2: came into force last month. The Trump administration's threat of

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Speaker 2: new tariffs has caused a surge in Apple store customers,

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Speaker 2: who are panic buying iPhones due to concerns about price increases.

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Speaker 2: Apple's US retail stores saw higher sales over the past

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Speaker 2: weekend than in Apple's US retail stores saw higher sales

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Speaker 2: over the past weekend than in prior years in some

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Speaker 2: major markets, with employees describing the atmosphere as similar to

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Speaker 2: the busy holiday season. The rush is expected to continue

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Speaker 2: over the next few days, which could help to bolster

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Speaker 2: Apple's third quarter results, although the impact of tariff's won't

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Speaker 2: likely be felt until the following quarter. Those are your

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Speaker 2: top stories on the markets. We are seeing a rebound

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Speaker 2: in eight in equities today, the Nickey up five point

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Speaker 2: two percent, the Topics five point five percent higher, the

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Speaker 2: MSCI China Index up by one point seven percent. We

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Speaker 2: did see the equity route turn into a bond rout yesterday,

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Speaker 2: though treasuries fell, the yield on the tenure rising around

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Speaker 2: twenty basis points. Today it's slightly below that level, down

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Speaker 2: four basis points at four point one four percent. As well,

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Speaker 2: investors liquidating their profitable trades to cover equity losses. Tim

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Speaker 2: applying to gold by the way, which fell by two

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Speaker 2: percent yesterday. Today it's up slightly on the day just

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Speaker 2: brushing three thousand dollars a troy ounce as well. Looking

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Speaker 2: ahead to the European session, Eurostox fifty features one point

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Speaker 2: nine percent higher on Wall Street SMP Mini's just up

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Speaker 2: over one percent. Well, in a moment, we'll bring you

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Speaker 2: more on the change in direction in markets. Plus is

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Speaker 2: the room for countries to negotiate with Donald Trump. But

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Speaker 2: what we're trying to make sense of all the headlines

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Speaker 2: on the market reaction to the tarerff story. It might

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Speaker 2: confort you know that some people are having fun with

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Speaker 2: all of this. Jessica Carl, who writes Bloomberg Opinion's daily newsletter,

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Speaker 2: nails it again in her latest noting the rise of

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Speaker 2: tarift as gen z or gen zed slang apparently needs

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Speaker 2: her response to when someone makes a sarcastic or cutting

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Speaker 2: remark to say, I'm tariffing you, Jessica writes, this feels

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Speaker 2: like a return to previous trends, like calling anything a

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Speaker 2: recession indicator, and kind of makes me nostalgic for some

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Speaker 2: of the sort of jokes of great value in a

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Speaker 2: recession that we used to hear in Ireland at the

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Speaker 2: time of the Eurozone crisis as well, perhaps as a

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Speaker 2: chart of recession related slang we could be looking for

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Speaker 2: as well. Donald Trump appears to be trying to get

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Speaker 2: in on the change in lexicons used of Pannikin in

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Speaker 2: a recent social media post, which he says is a

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Speaker 2: new party based on weak and stupid people. But is

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Speaker 2: it a combination of panic and Republican? Is it Panglin

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Speaker 2: and Pelican? Is it the new koffee Penny? More to

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Speaker 2: read from Jessica carl in the Bloomberg Opinion newsletter, which

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Speaker 2: you can sign up for from Bloomberg dot com as well.

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Speaker 2: She suggests that perhaps we should leave the new terms

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Speaker 2: to gen Z rather than trying to come up with

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Speaker 2: our own. Let's go to the markets now, Asian Equity's

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Speaker 2: rebounding from yesterday's sell off, even as China has vowed

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Speaker 2: to fight to the end in response to Donald Trump's

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Speaker 2: late as tariff threats our market's life. Strategistic Mary Nicola

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Speaker 2: is with us for more. Mary, good morning. Let's talk

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Speaker 2: about what we're seeing today, then, the turnaround and sentiment.

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Speaker 2: Where is it coming from, particularly when we think about

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Speaker 2: Japanese markets.

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Speaker 1: Yeah, I think for Japan specifically, it's more about Japan

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Speaker 1: seemingly getting a priority in trade negotiations, which we heard

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Speaker 1: from US Treasury Sectory Scott descent, which has given the

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Speaker 1: markets a substantial boost. But I would caution in terms

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Speaker 1: of it's too early to say that the tide has

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Speaker 1: really shifted in sentiment, because it does remain fragile without

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Speaker 1: terror relief. We saw how markets whip sawed in the

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Speaker 1: New York time zone on headlines that there may be

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Speaker 1: a delay in the tariffs. So I think for now,

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Speaker 1: this this bounce might be just a little bit more

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Speaker 1: of a reprieve than anything else.

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Speaker 2: Okay, well, how seriously then our investors taking this threat

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Speaker 2: of escalation from China.

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Speaker 1: I think pretty seriously. I think we've seen a bounce

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Speaker 1: in China and Chinese equities and Chinese equities, though that

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Speaker 1: balance remains a bit fragile, and it might be actually

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Speaker 1: provide a selling opportunity, especially as tensions escalate. We've heard

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Speaker 1: really strong words from both sides over the last twenty

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Speaker 1: four hours, and Beijing has signaled its willingness to fight,

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Speaker 1: and so it doesn't look like it's going to back down.

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Speaker 1: That just signals a potentially prolonged trade war, which obviously

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Speaker 1: raises the risks on global growth.

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Speaker 2: So should we then be braced for more volatility. You

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Speaker 2: mentioned that story yesterday that circulated around potential polls and towers,

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Speaker 2: which turned out not to be true, but giving us

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Speaker 2: an example of how jittery things are on markets.

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Speaker 1: Yeah, I think essentially the one thing that is almost

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Speaker 1: guaranteed in this market is volatility. We've seen a massive

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Speaker 1: whip saws over the last few over the last week,

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Speaker 1: and I think that's likely to continue because we don't

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Speaker 1: have anything resolute in terms of what we're getting on

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Speaker 1: terror relief, and that's going to continue to weigh on markets,

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Speaker 1: especially when we're getting more convincing evidence or concern that

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Speaker 1: there could be and rising concerns about a global recession.

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Speaker 1: So in addition to that is that we're not seeing

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Speaker 1: any fiscal or monetary policy come to the rescue, which

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Speaker 1: also aggravates and exacerbates the selloff. So that means the

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Speaker 1: risk the risks are rising, and essentially we're going to

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Speaker 1: see much much more volatility in the coming weeks.

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Speaker 2: Okay, we are warned, Mary, Thank you very much for

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Speaker 2: joining us, Mary Nicola, our Markets Live strategist. Well, the

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Speaker 2: next phase of Donald Trump's tariffs come into force tomorrow

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Speaker 2: higher rates applied to countries, including members of the EU.

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Speaker 2: Speaking on Monday, the US President did not offer much

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Speaker 2: clarity about what he wants from trading partners and any negotiations.

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Speaker 2: Our EMEA news director Rosalind Matheson is with us Now

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Speaker 2: for more ross. What did we learn from Donald Trump

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Speaker 2: on Monday?

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Speaker 10: Well, as you say, after a pretty well day on markets,

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Speaker 10: we didn't get a lot of clarity either from the

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Speaker 10: US President about what he's intending here, although there were

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Speaker 10: two things he did seem to make clear. He doesn't

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Speaker 10: want to put a blanket pause on the higher tariffs

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Speaker 10: that are set to take effect on Wednesday. He also

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Speaker 10: wouldn't be drawn on whether he would agree to lower

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Speaker 10: any tariffs below his baseline rate, which is ten percent,

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Speaker 10: But he did say he's willing to talk to people.

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Speaker 10: It's just unclear exactly what he wants in any of

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Speaker 10: those conversations, because not only is he talking about pure

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Speaker 10: what he calls pure tariff barriers, but he also talks

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Speaker 10: about non tariff barriers, and in the world of Donald Trump,

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Speaker 10: that can mean a lot of different things. And so

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Speaker 10: for countries to work out what is it that they

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Speaker 10: need to do here to perhaps, you know, encourage a

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Speaker 10: lower tariff rate. In the suite of options for them,

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Speaker 10: it's very unclear what they need to do, like what

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Speaker 10: exactly does he want them to give him in return,

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Speaker 10: and so they're kind of floundering around a little bit.

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Speaker 6: We know.

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Speaker 10: Also, I mean, given this is so many leaders and

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Speaker 10: officials and companies and lobby groups trying to get the

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Speaker 10: attention of the Trump administration, either Donald Trump himself or

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Speaker 10: those in his inner circle, those they see as decision makers,

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Speaker 10: that it's very hard to reach anybody. We know from

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Speaker 10: our own reporting they're getting inundated with that. And so

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Speaker 10: you know, not only we're not getting public clarity from

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Speaker 10: Donald Trump and his administration, but behind the scenes, it

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Speaker 10: seems that, you know, companies and countries alike are struggling

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Speaker 10: to work it out.

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Speaker 5: Yeah.

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Speaker 2: Indeed, we're seeing different approaches being taken by countries in

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Speaker 2: different parts of the world. We did have any meeting

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Speaker 2: yesterday of trade ministers in Luxembourg. They said they're ready

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Speaker 2: to deploy countermeasures, including the potential for digital taxes, in

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Speaker 2: response to blanket tariffs, but they too are still leaving

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Speaker 2: room open for talks. Well, that's right.

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Speaker 10: It seems everybody, perhaps aside from China, is leaving room

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Speaker 10: open for talks. As you say, the EU is proposing

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Speaker 10: twenty five percent tariffs on an array of US goods

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Speaker 10: that seem to emit American whiskey or bourbon, which is

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Speaker 10: actually a targeted move because bourbon's a key thing for

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Speaker 10: a number of US states where there are quite senior

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Speaker 10: Republican senators, and so they've dropped the plan to put

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Speaker 10: a fifty percent retaliatory tariff on that, But they do

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Speaker 10: have a list of other items including motorcycles, boats, I mean,

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Speaker 10: a lot of stuff is what has already been in

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Speaker 10: the crosshairs before, but also tobacco, poultry, even playing cards.

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Speaker 10: Most of them would get a twenty five percent tariff

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Speaker 10: under this someone get ten percent. But it seems to

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Speaker 10: be a bit of a calibrated response from the EU,

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Speaker 10: as you say, to allow roomfall negotiation and no official

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Speaker 10: talk at now the EU level. It seems about the

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Speaker 10: possibility of doing things like putting in an EU wide

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Speaker 10: digital tax on US big tech.

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