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

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Speaker 2: This is the Bloomberg Day ba Q, a podcast available

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

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Speaker 2: the seventeenth of June in London. I'm Caroline Hepke.

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Speaker 3: And I'm Stephen Carroll.

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Speaker 1: Coming up today, the US President tells people to evacuate

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Speaker 1: Tehran as he leaves the G seven summit early.

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Speaker 2: The US and UK finalize their tariff cutting agreement, as

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Speaker 2: the White House finds other pacts more elusive.

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Speaker 1: Plus Billionaire insights Citadel Fender, Ken Griffin on Trump, Harvard,

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Speaker 1: amateur investors, and the Sweet Treaty turns to to keep

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Speaker 1: his cool.

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

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Speaker 1: US President Donald Trump has left the G seven leader

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Speaker 1: summit in Canada early hours after he called for the

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Speaker 1: evacuation of Iran's capital, Tehran. Trump's change of plans was

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Speaker 1: announced about an hour after he urged Iran's leadership to

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Speaker 1: sign a deal to limit its nuclear program and Israel

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Speaker 1: signaled strikes would continue. White House Press Secretary Carlin Levitt

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Speaker 1: said Trump was leaving for Washington due to what's going.

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Speaker 3: On in the Middle East.

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Speaker 1: The latest news comes after the US President said Iran

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Speaker 1: wants to talk about de escalating the conflict with Israel.

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Speaker 3: I gave hern.

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Speaker 4: Sixty days and they said no. And the sixty first

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Speaker 4: year saw what happened day sixty one. So I'm in

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Speaker 4: constant touch, And as I've been saying, I think a

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Speaker 4: deal will be signed or something will happen, but a

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Speaker 4: deal will be signed, and I think Iran is foolish

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Speaker 4: not to sign.

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Speaker 1: One, the US President speaking there before he departed the

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Speaker 1: G seven. As the conflict shows no sign of letting up,

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Speaker 1: Iran fired several waves of drones and missiles over the

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Speaker 1: last twenty four hours, while Israel continued hitting Tehran, killing

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Speaker 1: one more senior military official and setting the state television

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Speaker 1: complex ablaze with a strike during a live broadcast. Israeli

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Speaker 1: officials have said their forces have taken can control over

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Speaker 1: much of Iranian airspace and severely damaged key facilities used

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Speaker 1: in Iran's missile and nuclear programs since the assault was

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Speaker 1: launched on Friday.

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Speaker 2: Israeli politician Ron Dermer, who is a member of the

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Speaker 2: Israeli cabinet and former ambassador to the United States, says

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Speaker 2: that Israel will continue its military operations against Iran's missile

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Speaker 2: and nuclear programs, regardless of any potential US Iran negotiations.

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Speaker 2: Derma spoke to Bloomberg's Balance of Power podcast.

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Speaker 5: And the President told the Prime minister, look, he wants

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Speaker 5: to give Iran a last chance to see if we

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Speaker 5: can reach a deal. But what were the outlines of

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Speaker 5: that deal is that Iran was going to have to

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Speaker 5: dismantle its military nuclear capability. That's what was put on

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Speaker 5: the table. And the President has been very clear about

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Speaker 5: this from the beginning. That's just the beginning of his presidency.

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Speaker 5: He's been saying this for years. Iran must never have

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Speaker 5: a nuclear weapon.

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Speaker 2: Ron Dermer speaking there on Bloomberg's Balance of Power, as

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Speaker 2: the price of oil gained once again on the latest

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Speaker 2: development brand crude, advancing as much as two point two

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Speaker 2: percent before easing back. The market remains focused on the

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Speaker 2: straight of Horn moves and any sign that Tehran may

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Speaker 2: seek to disrupt crude flows through the waterway, where about

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Speaker 2: a fifth of the world's daily output passes.

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Speaker 1: The UK Prime Minister Kiir Starmer and US President Donald

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Speaker 1: Trump have agreed a deal to implement their tariff cutting

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Speaker 1: agreement announced last month. British car exports WI see American

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Speaker 1: tariff slash to ten percent later this month on an

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Speaker 1: annual quota of one hundred thousand vehicles. That'll also be

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Speaker 1: reciprocal access to thirteen thousand metric tons of beef for

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Speaker 1: both US and British farmers, though the UK says any

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Speaker 1: imports will need to meet its food safety standards. Here's

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Speaker 1: the moment they signed off on the deal at the

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Speaker 1: G seven summit.

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Speaker 4: This is a very good day for both of our

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Speaker 4: country as a real signum strength.

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Speaker 6: So thank you again, Donald.

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Speaker 3: A really important day for both.

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Speaker 4: Of us, great people, great people.

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Speaker 5: Thanks.

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Speaker 1: Aerospace and steel exemptions are also in the deal, although

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Speaker 1: a quota on UK steel tariffs will be decided at

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Speaker 1: a later date. Kirs Starmer will sell the deal as

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Speaker 1: a vindication of his diplomatic approach to the US President.

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Speaker 2: Japan and the United States, though failed to reach a

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Speaker 2: trade agreement at that summit. Japan's Prime Minister should go issue,

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Speaker 2: but hold reporters the two sides were still not on

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Speaker 2: the same page. Both countries had been talking up the

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Speaker 2: chances of a breakthrough at the summit, with Karrs being

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Speaker 2: the focus for negotiators The lack of an agreement leaves

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Speaker 2: Japan closer to a possible recession as the pain of

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Speaker 2: US tariffs hits the economy.

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Speaker 1: The Bank of Japan has held interest rates steady and

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Speaker 1: revealed plans for a slower bond market withdrawal next year.

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Speaker 1: The Center Bank's board kept its benchmark policy rate at

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Speaker 1: zero point five percent following a two day meeting. Policymakers

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Speaker 1: also shared intentions to ease the pace at which monthly

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Speaker 1: bond purchases are trenmed to quarterly reductions of two hundred

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Speaker 1: billion yen from the current four hundred billion. The moves

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Speaker 1: are a sign of caution following heightened market volatility.

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Speaker 2: A damning report into group based child sexual exploitation in

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Speaker 2: England and Wales has found that the ethnicity of people

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Speaker 2: involved in grooming gangs has been quote shied away from

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Speaker 2: and not recorded in two thirds of cases. Baroness Louise

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Speaker 2: Casey delivered a rapid review for the UK government, which

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Speaker 2: has accepted all her recommendations and has agreed to a

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Speaker 2: national inquiry. Casey spoke to a number of media organizations

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Speaker 2: about her frustrations, including to the BBC. Some of the

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Speaker 2: serious case reviews they rarely talk about the perpetrators. They

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Speaker 2: certainly don't talk about the ethnicity of the perpetration. Yeah,

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Speaker 2: you felt more and more frustrated, and I thought, well, sod.

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Speaker 6: This, frankly, baroness.

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Speaker 2: Casey's report also found that for three local police forces,

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Speaker 2: there was enough evidence to show a quote disproportionate number

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Speaker 2: of men from Asian ethnic backgrounds among suspects. In these

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Speaker 2: types of cases, The report concludes ignorance and a fear

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Speaker 2: of being seen as racist meant that organization's tasked with

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Speaker 2: protecting children turned up blind eye to abuse. Casey makes

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Speaker 2: a series of recommendations, particularly to improve data collection and

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Speaker 2: toughen the penalties for perpetrators.

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Speaker 1: Citadel founder Ken Griffin has praised the Trump administration for

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Speaker 1: pushing back against cultural dynamics he believes have divided America.

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Speaker 1: In a wide ranging interview on Bloomberg's new show Bullish,

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Speaker 1: hosted by Shanali Bassak, the major Republican donor shared his

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Speaker 1: views on President Trump and his alma mater, Harvard's university.

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Speaker 3: Look.

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Speaker 7: I think what had happened at Harvard, which was the

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Speaker 7: rise of Wokism, a focus away from traditional values in education.

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Speaker 7: The emergence of a cancel culture. The anti Semitism that

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Speaker 7: we witness a campus was part of a larger dynamic

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Speaker 7: that was gripping America culture. And I think one of

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Speaker 7: the great parts of the Trump administration has been the

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Speaker 7: pushback on Wokism, on some of the culture dynamics I

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Speaker 7: think really poorized as US as a nation.

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Speaker 1: Griffin's comments come as a US federal judge says Harvard

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Speaker 1: is likely to prove it would suffer a reparable harm

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Speaker 1: if the government is able to proceed with plans to

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Speaker 1: block international students from attending the university. Regarding the Trump

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Speaker 1: administration's approach to policy, the Citadel founders said that while

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Speaker 1: on many fronts the President has done a spectacular job,

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Speaker 1: it's still too early to grade him on economic policy.

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Speaker 2: Well, those are our top stories for you this morning.

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Speaker 2: In a moment, we'll bring you more on what's been

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Speaker 2: said at the G seven on the Middle East and

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Speaker 2: on trade and what's happening indeed in the Iran is

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Speaker 2: Well conflict too.

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Speaker 1: Well, I wanted to bring you a little bit more

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Speaker 1: of that conversation between Shnali bask and Ken Griffin, and

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Speaker 1: a moment that perhaps some of us can identify with let's.

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Speaker 6: Listen in what does Ken Griffin look like under pressure?

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Speaker 3: Right on your toughest day?

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Speaker 8: How do you let off steam and how do you

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Speaker 8: navigate a tough time.

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Speaker 7: A scroup of anil chip ice cream from Hagenda's with

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Speaker 7: hot fudge.

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Speaker 3: Seriously?

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Speaker 7: Oh yes, yes, no, there's a bit of a joke

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Speaker 7: that you can tell how stress al spent by how

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Speaker 7: much my waistlines grown over the last few months. And

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Speaker 7: one of my colleagues his waistline goes in exactly the

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Speaker 7: opposite direction. So there you go, love the hagen DAW's

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Speaker 7: vinold ship with hot fudge on that stressful day.

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Speaker 1: So Ken Griffin there speaking to Shnali bask about how

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Speaker 1: he copes with stressful situations. Ken Griffin, I should remind you,

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Speaker 1: according to Boomberg's Billionaire's List, has a networth of over

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Speaker 1: forty eight billion dollars. Wow, and yet he still goes

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Speaker 1: for the ice cream.

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Speaker 5: Yeah.

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Speaker 2: Look, I thought it was really nice. It was a

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Speaker 2: lovely moment that you've highlighted, Stephen, because it does. It

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Speaker 2: brings to the full You know how people deal with stress,

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Speaker 2: They deal with stress in very different ways.

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Speaker 6: Yeah, there's not.

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Speaker 1: Some magic formula that I wasn't aware of that if

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Speaker 1: you had essentially infinite money that you couldn't there wouldn't

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Speaker 1: be something else that would be much much more effective.

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Speaker 1: So at least it's comforting to know that there isn't

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Speaker 1: an option out there that we didn't know about beforehand.

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Speaker 2: But yeah, it was a great question though to how

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Speaker 2: to deal with stress on very very busy days. You can,

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Speaker 2: of course see the extended interview. It's on our New

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Speaker 2: Bullish program at Shanali Bassek interviewing Ken Griffin. It's on

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Speaker 2: Bloomberg dot com, and you can also tune in to

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Speaker 2: New Bullish episodes on Bloomberg TV on Tuesdays at six pm.

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Speaker 1: On the markets, this morning, the Mscish Pacific Index is

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Speaker 1: up by a tenth of one percent. We're looking at

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Speaker 1: the Japanese yen a tenth of one percent weeker this

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Speaker 1: morning after the Bank of Japan decisions. One hundred and

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Speaker 1: forty four to fifty six is where that's trading amid

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Speaker 1: a touch of dollar weakness as well. On European stock futures,

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Speaker 1: they're pointing lower down six tenths of one percent for

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Speaker 1: eurostocks fifty after the games that we saw in those

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Speaker 1: markets yesterday, and futures on Wall Street are in the

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Speaker 1: red as well, down four tenths for smp EM and

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Speaker 1: E's this morning, as Nasdak futures are four tenths of

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Speaker 1: one percent lower as well.

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Speaker 2: So those are the markets. Now, let's bring you up

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Speaker 2: to date on the latest developments in the Middle East

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Speaker 2: after President Trump warned that people should evacuate the Iranian capital.

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Speaker 2: Middle East Managing editor Honor And joins us Now for

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Speaker 2: more on a good morning in terms of the latest

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Speaker 2: from Israel and Iran this morning, what do we know

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Speaker 2: about the conflict now?

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Speaker 9: The conflict is now in its fifth day and both

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Speaker 9: parties continue to exchange fire, with the Iranian side relying

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Speaker 9: on long range missile Barajas like it has since the

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Speaker 9: beginning of the conflict last Friday, whereas Israel seems to

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Speaker 9: have focused at least some of its firepower in the

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Speaker 9: Iranian capital Tehran. In the meantime, we have also seen

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Speaker 9: that US President Donald Trump way in on the conflict

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Speaker 9: more heavily than he has over the weekend. He was

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Speaker 9: in Canadian Rockies at the G seven meeting, where he

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Speaker 9: first said that he would have to leave, and he

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Speaker 9: did hastily so, saying that he would have to attend

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Speaker 9: to the Middle East matter, saying that he would like

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Speaker 9: to see a peace, but he still kept vague stands

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Speaker 9: on what is next for the US in terms of

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Speaker 9: this latest war in our region.

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Speaker 1: We've paid a lot of attention to this comment where

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Speaker 1: President Trump, in his social media.

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Speaker 3: Post called for people to leave Tehran.

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Speaker 1: Was that thought to be a warning about something in

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Speaker 1: particular from the US president?

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Speaker 9: It was thought to be so, but obviously we don't

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Speaker 9: actually know whether or not he was in particular aware

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Speaker 9: of any upcoming attack on Tehran. Having said that, that

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Speaker 9: tweet alone or those social media posts alone, had a

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Speaker 9: huge impact. We have seen videos of traffic jams in

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Speaker 9: Tehran as people tried to leave now. To be fair, though,

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Speaker 9: there were similar warnings from various Israeli officials throughout the

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Speaker 9: day before Trump's social media posts, so it is possible

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Speaker 9: that both those and Trump's comments themselves may have affected

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Speaker 9: people's thoughts, and some of them obviously felt obliged to

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Speaker 9: leave the capital as soon as possible.

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Speaker 2: The G seven state and talks about Iran is the

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Speaker 2: principal source of regional instability. And terror, while also reiterating

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Speaker 2: support for the security of Israel. Are there any hopes

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Speaker 2: for talks or any hopes for de escalation in this fight?

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Speaker 9: This is really the most tricky part. Since the conflict

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Speaker 9: began last week, we have seen Trump immediately dangle two

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Speaker 9: different outcomes for the administration in Iran. On the one hand,

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Speaker 9: he has been pushing them to reach a quick nuclear

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Speaker 9: deal to curb Iran's nuclear activities on the one hand,

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Speaker 9: but on the other he kept this vague stance on

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Speaker 9: whether or not he will support Israel in this offensive

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Speaker 9: against Iran and what exactly might happen to Iran itself.

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Speaker 9: He made comments suggesting really crippling Israeli military action targeting

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Speaker 9: nuclear and military sites in Tehran. So he's been trying

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Speaker 9: to show to Iran that a, on the one hand,

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Speaker 9: the US is open to a diplomatic solution, and b

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Speaker 9: on the other hand, if that doesn't work out, something

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Speaker 9: terrible will happen in Iran. And his most recent comments

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Speaker 9: while he was still in Canada on Monday, suggests that

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Speaker 9: there is there are efforts on the way to bring

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Speaker 9: is Iranian and American officials together, possibly the reign and

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Speaker 9: foreign Minister Arakchi and US Special Envoy to the Region

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Speaker 9: Witkov later this week, according to a report by Axios

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Speaker 9: earlier this morning. But all of this is highly uncertain,

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Speaker 9: and it looks though that missus Trump is keeping both

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Speaker 9: avenues open. On the one hand, yes, he is pushing

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Speaker 9: for a diplomatic solution. On the other hand, the US

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Speaker 9: is moving an aircraft carrier group to the region, which

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Speaker 9: is never a good sign. And basically, yeah, the US

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Speaker 9: is keeping it vague whether or not it will intervene.

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Speaker 9: It might intervene this war on the side of this release.

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Speaker 3: Okay, all around our metalleas managing editor.

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Speaker 2: Well, the statement from the G seven was agreed after

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Speaker 2: President Trump announced that he'd be leaving the meeting in

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Speaker 2: Canada early to return to Washington. That means that some

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Speaker 2: leaders hoping for a chance to talk about trade were

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Speaker 2: left disappointed, but President Trump announced progress on implementing the

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Speaker 2: tariff deal with the UK. Our correspondent Oliver Crook has

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Speaker 2: been monitoring developments for US and he joins US now.

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Speaker 2: Good morning, Oliver. So the UK was the first country

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Speaker 2: to get a deal with the Trump White House so

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Speaker 2: lower tariffs last month. What did Trump and Kis Starmer

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Speaker 2: agree to in Canada.

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Speaker 6: Yeah, good morning, Caroline.

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Speaker 8: This is broadly sort of an implementation of the framework

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Speaker 8: that we had announced a little while ago between the

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Speaker 8: UK and the United States, and as you say, the

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Speaker 8: first of what we've been promised of many many, many

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Speaker 8: trade deals that are supposed to be coming over the

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Speaker 8: next couple of weeks, but one that has taken, you know,

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Speaker 8: a little bit of time to actually get over the line.

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Speaker 8: You know, they had this, they showed this sort of

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Speaker 8: folder and they showed them kind of this agreement that

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Speaker 8: they put together, and it basically includes measures on many

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Speaker 8: of the things we've talked about throughout this sort of

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Speaker 8: tariff war about cars, agriculture, excuse me, agricultural products, and

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Speaker 8: you know, for one of the things, it's interesting because

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Speaker 8: the United you know, the UK, and it's auto exports

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Speaker 8: for example. Though, so that tariff came down from about

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Speaker 8: thirty percent twenty seven and a half percent down to

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Speaker 8: ten percent. They're also going to be adding quotas of

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Speaker 8: about one hundred thousand vehicles to export into the United States.

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Speaker 8: There were also some things struck on aluminum and steel.

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Speaker 8: It's a little bit less clear what was struck there

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Speaker 8: because it's a little bit more complicated. They want the

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Speaker 8: US to implement some guarantees in terms of securing the

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Speaker 8: supply chain because of course the US government, the UK

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Speaker 8: government controls are British steal but its legal.

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Speaker 6: Owner is Chinese.

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Speaker 8: We should say that this is at a time when

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Speaker 8: the Trump administration itself just to prove the acquisition of

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Speaker 8: US steal by a Japanese group, albeit with some sort

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Speaker 8: of caveats and important things there. But I think that

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Speaker 8: really the big puiketure here when you take a step back, remember,

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Speaker 8: the UK is arguably one of the countries that poses

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Speaker 8: the sort of small all his trade threat.

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Speaker 6: To the United States.

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Speaker 8: It was one of the only nations that had a

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Speaker 8: deficit with the United States. So it's maybe not that

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Speaker 8: impressive that this is the deal that got signed while

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Speaker 8: all the others are still sort of waiting, when by

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Speaker 8: sort of Trump standards, you know, the United States is

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Speaker 8: already taking advantage of the United Kingdom. If you basically,

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Speaker 8: you know, accept the Trump logic, the trade surplus means

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Speaker 8: you're taking advantage of the other This is the lowest

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Speaker 8: hanging fruit, and it's taken a little while to get

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Speaker 8: over the line.

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Speaker 3: Oliver.

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Speaker 1: We had been discussing Donald Trump's early departure from the

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Speaker 1: g SAVNA and a post on social media now saying

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Speaker 1: that he has, I suppose added to some of the

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Speaker 1: commentary that's come both from the White House but other

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Speaker 1: world leaders as well, that perhaps he was returning to

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Speaker 1: Washington to make progress on efforts in the Middle East,

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Speaker 1: and his post on social media says that that's wrong.

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Speaker 1: He says that he's not going back to work on

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Speaker 1: a ceasefire in Washington. He says it's much bigger than that,

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Speaker 1: and he's taken a bit of a job at Emmanuel

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Speaker 1: Macro and the French president for suggesting that the departure

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Speaker 1: was to do with working on a ceasefire in the

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Speaker 1: Middle East. So that's perhaps some more information for those

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Speaker 1: leaders who were left disappointed by the fact that they

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Speaker 1: didn't get a chance to meet Donald Trump at this event,

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Speaker 1: because many had been hoping to talk to him about trade.

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Speaker 8: Yeah, I mean, I think that if we've learned anything

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Speaker 8: about Donald Trump, it's probably better not to speak for him,

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Speaker 8: otherwise you will get corrected and maybe you know a

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Speaker 8: lot worse. But as you say, you know, I mean,

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Speaker 8: these G seven formats theoretically are a sort of form

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Speaker 8: for collective action by like minded Western developed nations in

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Speaker 8: order to try to bring economic, military, social political stability

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Speaker 8: across the globe. And this is not a moment in

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Speaker 8: which a year is any sort of collective action that

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Speaker 8: is being led by the United States, because this is

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Speaker 8: a system in which that you know, the Trump administration

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Speaker 8: fundamentally does not believe in. And it is a time

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Speaker 8: when you went into the meeting with a highly tense

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Speaker 8: situation in Iran, in Iran.

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Speaker 6: In Israel, and you leave with an even more explosive one.

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Speaker 8: So all of those, I would say, are kind of

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Speaker 8: failures to the architecture of the G seven. What it

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Speaker 8: did provide theoretically was an opportunity for a lot of

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Speaker 8: bilateral meetings with the Trump administration. With Donald Trump himself,

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Speaker 8: we understand he met with Emmanuel Macon, Keir Starmer, We

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Speaker 8: saw Ursua, Lavanderline, Georgia Maloney.

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Speaker 6: He had been scheduled to meet with Frederick Mertz.

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Speaker 8: But at this point, you know, there was not a

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Speaker 8: great deal of progress, it seems, made on any of

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Speaker 8: the other sort of trade fronts, certainly with the European Union.

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Speaker 8: I think that it has sort of been accepted by

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Speaker 8: the Trump administration and maybe the Europeans that they're kind

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Speaker 8: of last in line in terms of getting a negotiation.

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Speaker 8: You know, we heard from Howard Lutnik last week saying

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Speaker 8: that he's optimistic that a deal could get there, but

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Speaker 8: basically that the Europeans will be the very the very last,

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Speaker 8: because of course, this is an enormous trading relationship worth

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Speaker 8: more than a trillion dollars, So for the Europeans and

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Speaker 8: the United States, it's both fundamentally important that they get

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Speaker 8: it right. That being said, we are counting down to

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Speaker 8: that deadline for the European Union to strike some kind

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Speaker 8: of deal July the ninth, at which point, basically the

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Speaker 8: United States would put up fifty percent tariffs on the EU.

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Speaker 8: The EU has said that they're committed to hitting that target,

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Speaker 8: but you know, from our reporting, we may not get

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Speaker 8: kind of final deal there. We may see the same

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Speaker 8: structure that we start from the UK, a broad framework

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Speaker 8: that basically buys from more time because this is going

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Speaker 8: to be a complex negotiation.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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Speaker 3: I'm Caroline Hepka and I'm Stephen Carroll.

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Speaker 1: Join us again tomorrow morning for all the news you

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Speaker 1: Break Europe