1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,800 --> 00:00:10,240 Speaker 2: This is the. 3 00:00:10,240 --> 00:00:13,760 Speaker 3: Bloomberg dayba Q podcast, available every morning on Apple, Spotify 4 00:00:13,840 --> 00:00:16,680 Speaker 3: or wherever you listen. It's Tuesday, the twenty ninth of April. 5 00:00:16,680 --> 00:00:18,800 Speaker 3: Here in London. I'm Caroline Hepka. 6 00:00:18,680 --> 00:00:22,040 Speaker 4: And I'm Jack Sitters. Coming up today, Mark Carney's Liberals 7 00:00:22,040 --> 00:00:25,280 Speaker 4: secure and narrow victory in a Canadian election dominated by 8 00:00:25,360 --> 00:00:26,720 Speaker 4: frosty US relations. 9 00:00:27,000 --> 00:00:30,800 Speaker 3: The cause of a massive blackout across Spain and Portugal 10 00:00:30,840 --> 00:00:33,840 Speaker 3: remains a mystery. As power returns. 11 00:00:33,520 --> 00:00:37,920 Speaker 4: Plus Trump's second first one hundred days, the US President 12 00:00:37,920 --> 00:00:41,159 Speaker 4: looks to tout his successes as polling shows ebbing support 13 00:00:41,240 --> 00:00:42,479 Speaker 4: for his economic policies. 14 00:00:42,640 --> 00:00:44,720 Speaker 5: Let's start with a roundup of our top stories. 15 00:00:45,040 --> 00:00:47,640 Speaker 4: Mark Carney's Liberal Party is projected to win a fourth 16 00:00:47,680 --> 00:00:51,880 Speaker 4: consecutive election, marking a major turnaround for the party. Despite 17 00:00:51,920 --> 00:00:54,200 Speaker 4: the victory, it's likely the party will fall short of 18 00:00:54,240 --> 00:00:56,200 Speaker 4: the one hundred and seventy two seats needed for an 19 00:00:56,200 --> 00:00:59,600 Speaker 4: outright majority in the House of Commons. The narrow margin 20 00:00:59,680 --> 00:01:01,840 Speaker 4: means the former Central banker will need to work with 21 00:01:01,880 --> 00:01:05,360 Speaker 4: other parties to pass legislation as he navigates trade hostilities 22 00:01:05,360 --> 00:01:08,679 Speaker 4: with the Trump administration, and in his victory speech, Carnei 23 00:01:08,760 --> 00:01:10,280 Speaker 4: echoed his campaign comments. 24 00:01:10,600 --> 00:01:14,360 Speaker 6: Our old relationship with the United States, a relationship based 25 00:01:14,680 --> 00:01:20,840 Speaker 6: on steadily increasing integration, is over. The system of open 26 00:01:21,040 --> 00:01:24,600 Speaker 6: global trade anchored by the United States, a system that 27 00:01:24,720 --> 00:01:28,120 Speaker 6: Canada has relied on since the Second World War, a 28 00:01:28,240 --> 00:01:32,959 Speaker 6: system that will not perfect, has helped deliver prosperity for 29 00:01:33,000 --> 00:01:36,800 Speaker 6: a country for decades, is over. We are over the 30 00:01:36,840 --> 00:01:40,480 Speaker 6: shock of the American betrayal, but we should never forget 31 00:01:40,560 --> 00:01:41,120 Speaker 6: the lessons. 32 00:01:41,760 --> 00:01:45,360 Speaker 4: The former head of Canada's and Britain central banks, Mark Carney, 33 00:01:45,360 --> 00:01:48,000 Speaker 4: became Liberal leader on March ninth and called an election 34 00:01:48,200 --> 00:01:51,080 Speaker 4: just two weeks later. Campaigning is a tough opponent to 35 00:01:51,120 --> 00:01:54,280 Speaker 4: a US president who has repeatedly suggested Canada should become 36 00:01:54,320 --> 00:01:57,520 Speaker 4: a US state. After steering two G seven central banks 37 00:01:57,520 --> 00:01:59,880 Speaker 4: through the two thousand and eight financial crash and Brexit, 38 00:02:00,240 --> 00:02:02,720 Speaker 4: Carly must now prove to voters that his reputation as 39 00:02:02,720 --> 00:02:05,800 Speaker 4: a crisis manager can extend into the political arena. 40 00:02:06,040 --> 00:02:09,760 Speaker 3: Power has been almost fully restored in Spain and Portugal 41 00:02:09,840 --> 00:02:12,560 Speaker 3: after the two countries were hit by a sweeping power 42 00:02:12,560 --> 00:02:15,440 Speaker 3: cut on Monday. Millions of people were caught up in 43 00:02:15,480 --> 00:02:18,360 Speaker 3: the chaos after the mass blackout brought many areas of 44 00:02:18,400 --> 00:02:21,840 Speaker 3: life to a standstill, with trains stopping, planes grounded, internet 45 00:02:21,880 --> 00:02:25,720 Speaker 3: and mobile phone services, cut, traffic, lights and at ms down. 46 00:02:26,160 --> 00:02:27,200 Speaker 5: The cause of. 47 00:02:27,080 --> 00:02:30,200 Speaker 3: The blackout remains unknown, though, with the Spanish Prime Minister 48 00:02:30,240 --> 00:02:33,959 Speaker 3: Pedro Sanchez saying that experts have not yet been able 49 00:02:34,000 --> 00:02:35,600 Speaker 3: to determine the cause. 50 00:02:36,000 --> 00:02:40,520 Speaker 7: Dams, we still have no conclusive information about the reasons 51 00:02:40,560 --> 00:02:43,960 Speaker 7: for this outage. The power supply has already been restored 52 00:02:44,000 --> 00:02:46,120 Speaker 7: in several territories in the north and south of the 53 00:02:46,160 --> 00:02:52,760 Speaker 7: peninsula thanks to the interconnections with France and Morocco conf Mars. 54 00:02:52,880 --> 00:02:55,919 Speaker 3: The words of Pedros Sanchez that are spoken via a translator. 55 00:02:55,919 --> 00:02:58,160 Speaker 3: A blackout of this scale is rare in Europe and 56 00:02:58,240 --> 00:03:01,560 Speaker 3: highlights the fragility of the grid as the region shifts 57 00:03:01,600 --> 00:03:05,160 Speaker 3: to renewable energy. Spain may also face scrutiny, though over 58 00:03:05,240 --> 00:03:09,000 Speaker 3: plans to decommission nuclear plants, which supply twenty percent of 59 00:03:09,040 --> 00:03:12,400 Speaker 3: its power, and the closure of its last coal powered 60 00:03:12,480 --> 00:03:15,040 Speaker 3: plant this year in favor of renewables. 61 00:03:15,080 --> 00:03:16,200 Speaker 5: Backed by gas. 62 00:03:16,560 --> 00:03:19,480 Speaker 4: HSBC is to buy back another three billion dollars of 63 00:03:19,520 --> 00:03:22,960 Speaker 4: shares as profits come in well ahead of estimates. Bloomberg's 64 00:03:23,040 --> 00:03:26,200 Speaker 4: Uin Pots has more. It's a big beat for HSBC. 65 00:03:26,480 --> 00:03:29,360 Speaker 8: Europe's largest bank has apported a pre tax profit of 66 00:03:29,480 --> 00:03:32,320 Speaker 8: nine point four to eight billion dollars for the first quarter, 67 00:03:32,600 --> 00:03:35,520 Speaker 8: well ahead of estimates for seven point eight billion. The 68 00:03:35,560 --> 00:03:38,080 Speaker 8: London based lender is to buy back another three billion 69 00:03:38,120 --> 00:03:40,640 Speaker 8: dollars of shares after what it called the strong results 70 00:03:40,640 --> 00:03:42,320 Speaker 8: and momentum in earnings. 71 00:03:42,720 --> 00:03:44,640 Speaker 9: As to the outlook watch this space. 72 00:03:45,040 --> 00:03:48,680 Speaker 8: AHSBC is the largest non US clear of dollars, so 73 00:03:48,760 --> 00:03:51,400 Speaker 8: it is highly exposed to the growing rift between Washington 74 00:03:51,480 --> 00:03:52,080 Speaker 8: and Beijing. 75 00:03:52,320 --> 00:03:54,320 Speaker 9: In London. I'm Ewine Pots Bloomberg Radio. 76 00:03:54,560 --> 00:03:57,680 Speaker 3: Now let's think about other earnings. A key story from 77 00:03:57,760 --> 00:04:01,520 Speaker 3: Deutsche Bang are the German lender report profits and revenues 78 00:04:01,520 --> 00:04:03,720 Speaker 3: that beat estimates. So the first three months of this year, 79 00:04:03,760 --> 00:04:06,600 Speaker 3: pre tax profits came in at two point eight billion 80 00:04:06,600 --> 00:04:09,360 Speaker 3: euros in the first quarter. That's more than two hundred 81 00:04:09,520 --> 00:04:14,040 Speaker 3: million higher than estimates. Fixed income sales and trading revenue 82 00:04:14,040 --> 00:04:17,359 Speaker 3: at Deutsche Bank also beat at two point nine billion euros. 83 00:04:17,760 --> 00:04:20,560 Speaker 3: Deutsche Bank CFO James von Malka says the bank is 84 00:04:20,600 --> 00:04:22,960 Speaker 3: benefiting from global volatility. 85 00:04:23,720 --> 00:04:26,919 Speaker 2: The crystal ball is cloudy as we think about it though. 86 00:04:27,279 --> 00:04:30,200 Speaker 2: First of all, our company is well equipped to navigate 87 00:04:30,600 --> 00:04:34,400 Speaker 2: an environment like this, whether it's risk management or the 88 00:04:34,400 --> 00:04:37,440 Speaker 2: great client franchise we have, as well as the very 89 00:04:37,440 --> 00:04:41,480 Speaker 2: strong balance sheet. We're equipped to navigate ourselves and more importantly, 90 00:04:41,800 --> 00:04:44,720 Speaker 2: help clients through what is an unsettled environment. 91 00:04:45,600 --> 00:04:49,960 Speaker 3: Deutsche Banks CFO there speaking to Bloomberg, He added that 92 00:04:50,000 --> 00:04:52,680 Speaker 3: the bank has to look at the near term future 93 00:04:52,720 --> 00:04:56,320 Speaker 3: with some caution. It's the latest set of bank earnings 94 00:04:56,400 --> 00:04:59,320 Speaker 3: showing how traders have made big profits on the market 95 00:04:59,360 --> 00:05:02,120 Speaker 3: volatility set off by the Trump administration. 96 00:05:03,360 --> 00:05:05,719 Speaker 4: US President Donald Trump is on track to ease some 97 00:05:05,920 --> 00:05:09,799 Speaker 4: tariffs on car manufacturers. Some levees on importing foreign parts 98 00:05:09,839 --> 00:05:11,719 Speaker 4: will be lifted, and there will be a reprieve to 99 00:05:11,720 --> 00:05:15,719 Speaker 4: prevent steel and car tariffs overlapping. Two days ago, Trump 100 00:05:15,760 --> 00:05:18,000 Speaker 4: had doubled down on his trade policy, saying it would 101 00:05:18,080 --> 00:05:19,200 Speaker 4: lead to lower taxes. 102 00:05:19,920 --> 00:05:21,920 Speaker 10: They getting a lot of money from tariffs. We are 103 00:05:21,960 --> 00:05:25,400 Speaker 10: losing a lot before I got here, we're losing billions 104 00:05:25,400 --> 00:05:28,200 Speaker 10: of dollars a day. And now we're doing great and 105 00:05:28,240 --> 00:05:31,279 Speaker 10: we haven't even kicked in yet. And eventually we'll be 106 00:05:31,360 --> 00:05:34,760 Speaker 10: reducing taxes very substantially. For the people of our country, 107 00:05:35,160 --> 00:05:37,719 Speaker 10: because the money is so great coming in from tariffs 108 00:05:38,080 --> 00:05:40,960 Speaker 10: that I'll be able to reduce taxes to a very 109 00:05:41,040 --> 00:05:43,680 Speaker 10: large extent and maybe almost completely. 110 00:05:44,240 --> 00:05:46,360 Speaker 4: The US President could sign off on the shift as 111 00:05:46,360 --> 00:05:48,280 Speaker 4: soon as today, a head of a speech he's giving 112 00:05:48,320 --> 00:05:51,560 Speaker 4: in car making state to Michigan. The latest devolution of 113 00:05:51,600 --> 00:05:54,560 Speaker 4: Trump's trade policy comes as the Dallas Fed Manufacturing Index 114 00:05:54,600 --> 00:05:58,360 Speaker 4: posted its worst reading since twenty twenty, with executives using 115 00:05:58,400 --> 00:06:01,680 Speaker 4: words like chaos and in sanity to describe the fallout 116 00:06:01,720 --> 00:06:02,520 Speaker 4: of tariffs. 117 00:06:02,880 --> 00:06:07,000 Speaker 3: Meanwhile, China's top diplomat says that appeasing a bully will 118 00:06:07,000 --> 00:06:11,360 Speaker 3: only make America boulder. Foreign Minister Wang Yi urged countries 119 00:06:11,400 --> 00:06:13,760 Speaker 3: around the world to stand up to the United States, 120 00:06:13,800 --> 00:06:17,960 Speaker 3: as his office released a propaganda video saying China won't 121 00:06:18,000 --> 00:06:21,920 Speaker 3: kneel down. The EU's Economy Commission of Altis Don Broskis, 122 00:06:22,080 --> 00:06:25,279 Speaker 3: says that they are still engaging with America, but that 123 00:06:25,400 --> 00:06:28,560 Speaker 3: he had a message for China too. 124 00:06:28,680 --> 00:06:32,120 Speaker 11: That it's important also that China shows restraint, that it 125 00:06:32,240 --> 00:06:35,560 Speaker 11: does not put all this now our capacity of goods 126 00:06:36,160 --> 00:06:39,080 Speaker 11: to other markets, including EU, because then we will help 127 00:06:39,080 --> 00:06:41,960 Speaker 11: to react to or how to close our market to protect, 128 00:06:42,000 --> 00:06:45,799 Speaker 11: protect our economy, our companies, and that will lead even 129 00:06:45,880 --> 00:06:48,520 Speaker 11: to further global economic fragmentation. 130 00:06:49,320 --> 00:06:52,719 Speaker 3: The EU's veldist Don Broski, speaking to Bloomberg there Washington 131 00:06:52,800 --> 00:06:55,240 Speaker 3: has insisted that the ball is in China's court to 132 00:06:55,279 --> 00:06:58,640 Speaker 3: de escalate the trade Wilbert Beijing has demanded a cancelation 133 00:06:58,760 --> 00:07:01,799 Speaker 3: of all US tariffs before any negotiations begin. 134 00:07:02,760 --> 00:07:06,560 Speaker 4: CEOs from firms including Nvidia, Eli, Lilly, and SoftBank will 135 00:07:06,600 --> 00:07:09,479 Speaker 4: visit the White House tomorrow to highlight their US investments 136 00:07:09,720 --> 00:07:12,840 Speaker 4: as the president celebrates one hundred days in office. The 137 00:07:12,880 --> 00:07:15,400 Speaker 4: event will come after Trump attends a Michigan rally today 138 00:07:15,440 --> 00:07:18,400 Speaker 4: to mark the milestone, where he is expected to tout 139 00:07:18,400 --> 00:07:23,240 Speaker 4: his administration's estimated two trillion dollars in corporate commitments. But 140 00:07:23,560 --> 00:07:26,200 Speaker 4: amidst the White House festivities are warnings from Wall Street 141 00:07:26,280 --> 00:07:29,600 Speaker 4: leaders about price increases and fallout from a US led 142 00:07:29,640 --> 00:07:33,520 Speaker 4: trade war. Luri Calvasina, head of US equity strategy at 143 00:07:33,600 --> 00:07:36,840 Speaker 4: RBC Capital Markets, says firms are facing uncertainty. 144 00:07:37,040 --> 00:07:39,880 Speaker 12: I think it was an intellectually honest conversation we got 145 00:07:40,160 --> 00:07:42,360 Speaker 12: from companies saying, you know, look, we're not changing our 146 00:07:42,360 --> 00:07:45,240 Speaker 12: guidance because we think we can manage this too. We're 147 00:07:45,240 --> 00:07:47,080 Speaker 12: not going to do annual guidance anymore. We're going to 148 00:07:47,080 --> 00:07:50,800 Speaker 12: do quarterly guidance instead to we can't give you anything 149 00:07:50,840 --> 00:07:52,720 Speaker 12: right now. We'll give you an answer when we have one, 150 00:07:52,720 --> 00:07:54,560 Speaker 12: and we're not going to give you on until we're comfortable. 151 00:07:55,600 --> 00:07:59,600 Speaker 4: RBC's Laurie Calvicina speaking there. Donald Trump is also facing 152 00:07:59,680 --> 00:08:02,960 Speaker 4: Sinki popularity, with a flurry of poles showing voter disapproval 153 00:08:02,960 --> 00:08:07,040 Speaker 4: of the president's economic stewardship. Gages from CNN and NBC 154 00:08:07,160 --> 00:08:09,960 Speaker 4: show just thirty nine percent of Americans agree with the 155 00:08:09,960 --> 00:08:11,680 Speaker 4: White House tariff rollout. 156 00:08:12,120 --> 00:08:14,560 Speaker 3: Those are our top stories for you this morning. Now 157 00:08:14,640 --> 00:08:19,120 Speaker 3: let's get to the markets. Asian equities hire the possibility 158 00:08:19,160 --> 00:08:22,760 Speaker 3: that President Trump may ease his auto tariffs has helped 159 00:08:22,800 --> 00:08:26,960 Speaker 3: to lift some of the automakers in Asia. Kia, Hyundai, 160 00:08:27,360 --> 00:08:31,200 Speaker 3: and Toyota all rising in trading this morning. Mci AH 161 00:08:31,280 --> 00:08:34,640 Speaker 3: Pacific Index up by three tenths of one percent. As 162 00:08:34,679 --> 00:08:38,960 Speaker 3: for stock futures, they are mixed this morning, slightly half 163 00:08:38,960 --> 00:08:42,040 Speaker 3: of the US stock swfty futures smb FI found evening 164 00:08:42,080 --> 00:08:45,320 Speaker 3: future also just about clinging on to the Green Wall 165 00:08:45,320 --> 00:08:48,200 Speaker 3: Street in the last hours of trading yesterday saw some 166 00:08:48,280 --> 00:08:50,640 Speaker 3: gains in their four to five days of gains, the 167 00:08:50,679 --> 00:08:53,800 Speaker 3: longest winning streaks since and November. Yes they also saw 168 00:08:54,120 --> 00:08:57,240 Speaker 3: US Treasury's rally across the curve two year yields falling 169 00:08:57,320 --> 00:09:00,960 Speaker 3: six basis points on that tariff for p Also just 170 00:09:00,960 --> 00:09:03,720 Speaker 3: looking at the loony this morning, weekening three tenths against 171 00:09:03,720 --> 00:09:06,400 Speaker 3: the US a lot on the Canadian election result. And 172 00:09:06,480 --> 00:09:09,520 Speaker 3: I'll mention a couple of earnings out today. BP adjusted 173 00:09:09,559 --> 00:09:13,480 Speaker 3: net income for the first quarter missus average analyst estimates. 174 00:09:13,559 --> 00:09:16,280 Speaker 3: They're planning to share buyback seven and fifty million dollars 175 00:09:16,400 --> 00:09:19,400 Speaker 3: and astra Zenica earnings per share come in as a 176 00:09:19,440 --> 00:09:23,480 Speaker 3: big beat. Two dollars forty nine for core earnings per 177 00:09:23,520 --> 00:09:24,960 Speaker 3: share from Astrazenica. 178 00:09:25,559 --> 00:09:27,960 Speaker 4: Thanks Caroline, you had lots of earnings headlines today and 179 00:09:28,000 --> 00:09:30,240 Speaker 4: in just a moment we'll talk about Trump's first one 180 00:09:30,320 --> 00:09:33,320 Speaker 4: hundred days with Amy A News director Roslyn Madison. But 181 00:09:33,360 --> 00:09:36,280 Speaker 4: before we do, another story that caught our eye this morning. 182 00:09:36,600 --> 00:09:40,000 Speaker 4: The blackout in Spain and Portugal, which remains a mystery, 183 00:09:40,440 --> 00:09:43,000 Speaker 4: was chaos for sixty million people on the Iberian Peninsula, 184 00:09:43,120 --> 00:09:46,120 Speaker 4: no internet, no lights. Trainers came to a standstill, thousands 185 00:09:46,120 --> 00:09:50,120 Speaker 4: of flights canceled, ATM stopped working, stock market operated as normal, 186 00:09:50,480 --> 00:09:51,640 Speaker 4: but backup generators. 187 00:09:52,200 --> 00:09:54,720 Speaker 3: Yes, and that's the issue that we still really don't 188 00:09:54,800 --> 00:10:00,320 Speaker 3: understand what oscillation means. That was what the read Elne Electric, 189 00:10:00,480 --> 00:10:06,520 Speaker 3: the electricity grid are blamed for this massive blackout across Portugal, Spain, 190 00:10:06,600 --> 00:10:08,840 Speaker 3: even effect to some parts of France. We had our 191 00:10:09,200 --> 00:10:13,480 Speaker 3: writers Ben Sill's colleagues in Madrid out and about. He 192 00:10:13,559 --> 00:10:16,560 Speaker 3: wrote a piece about how the students were all lying 193 00:10:16,600 --> 00:10:18,960 Speaker 3: on the grass, not or not working because all of 194 00:10:19,000 --> 00:10:22,200 Speaker 3: their books effectively are online. They don't actually have physical 195 00:10:22,240 --> 00:10:26,280 Speaker 3: books anymore. Our opinion columnists Javier Blass also posting about 196 00:10:26,280 --> 00:10:30,360 Speaker 3: this throughout the day. His father apparently was complaining that 197 00:10:30,520 --> 00:10:34,320 Speaker 3: his reclinable chair is electric and that it wouldn't work, 198 00:10:34,360 --> 00:10:37,440 Speaker 3: so it disturbed his siesta. So lots of people, you know, 199 00:10:37,559 --> 00:10:41,480 Speaker 3: were trying to enjoy the afternoon as best as they could, 200 00:10:41,480 --> 00:10:43,240 Speaker 3: but there were a lot of worries about kind of 201 00:10:43,240 --> 00:10:45,560 Speaker 3: what this means. It's very rare for there to be 202 00:10:45,640 --> 00:10:48,120 Speaker 3: such a huge blackout, so there'll be loads of questions 203 00:10:48,200 --> 00:10:48,760 Speaker 3: about it. 204 00:10:49,440 --> 00:10:51,800 Speaker 4: Now, let's get the latest on the Canadian election results. 205 00:10:51,800 --> 00:10:54,840 Speaker 4: And a fourth consecutive term for Liberal Party, but only 206 00:10:54,880 --> 00:10:58,360 Speaker 4: a narrow margin of victory. It's one incoming Prime Minister 207 00:10:58,440 --> 00:11:01,520 Speaker 4: Mark Carney secured by doubling down on one issue, standing 208 00:11:01,600 --> 00:11:05,560 Speaker 4: up to Donald TRUMPA News director Roslyn Matheson joins US 209 00:11:05,600 --> 00:11:08,360 Speaker 4: Now for more Morning. Roslyn, so, Mark Conney referred to 210 00:11:08,559 --> 00:11:12,080 Speaker 4: America's betrayal. China have called the US a bully. Does 211 00:11:12,080 --> 00:11:14,600 Speaker 4: this election mark a turning point for global views towards 212 00:11:14,600 --> 00:11:16,319 Speaker 4: the US, Well, yes. 213 00:11:16,200 --> 00:11:17,400 Speaker 13: And possibly no. 214 00:11:17,800 --> 00:11:19,960 Speaker 14: I mean, as you say, it was actually quite a 215 00:11:20,080 --> 00:11:23,320 Speaker 14: narrow victory for Mark Carney, and there's some possibility he'll 216 00:11:23,360 --> 00:11:27,320 Speaker 14: have to end up running a minority government operating with 217 00:11:27,440 --> 00:11:30,840 Speaker 14: the party that tends to feel candidates only in Quebec, 218 00:11:30,840 --> 00:11:34,040 Speaker 14: because it was interesting to see the Conservatives make some 219 00:11:34,240 --> 00:11:38,840 Speaker 14: inroads in the Liberal heartlands in Toronto and Ontario. So 220 00:11:39,360 --> 00:11:44,520 Speaker 14: those are long, long, long voters for the Liberals. And 221 00:11:44,600 --> 00:11:48,520 Speaker 14: that's despite using that strong sense of grievance that you 222 00:11:48,600 --> 00:11:52,720 Speaker 14: see coming from Canadian people in general at the way 223 00:11:52,760 --> 00:11:55,880 Speaker 14: that the relationship with the US has broken down, because 224 00:11:55,880 --> 00:11:59,680 Speaker 14: of course, for many Canadians it's quite personal to see 225 00:11:59,679 --> 00:12:02,160 Speaker 14: the way that you know, the US administration is talking 226 00:12:02,160 --> 00:12:04,400 Speaker 14: about them and talking about making them yet another state 227 00:12:04,960 --> 00:12:07,679 Speaker 14: of the US. And in spite of all of that 228 00:12:07,880 --> 00:12:10,559 Speaker 14: and obviously Cannie, you know, he did turn things around 229 00:12:11,000 --> 00:12:14,319 Speaker 14: from the popularity of the liberals only some months ago, 230 00:12:14,559 --> 00:12:17,320 Speaker 14: but it wasn't quite the victory that perhaps he was 231 00:12:17,360 --> 00:12:21,040 Speaker 14: looking for in a convincing sense. And perhaps that means 232 00:12:21,080 --> 00:12:24,800 Speaker 14: that people are worried that you know, yes, they're concerned 233 00:12:24,840 --> 00:12:27,000 Speaker 14: about Donald Trump, but if you stand up to him 234 00:12:27,040 --> 00:12:30,120 Speaker 14: too much, do you bring too much economic pain back 235 00:12:30,160 --> 00:12:30,760 Speaker 14: on yourself? 236 00:12:31,000 --> 00:12:34,439 Speaker 3: Yeah, Connie talks about it being a hinge moment in history, 237 00:12:34,520 --> 00:12:37,760 Speaker 3: that he wants to make Canada and energy superpower. 238 00:12:38,600 --> 00:12:40,360 Speaker 5: And also to double home building. 239 00:12:40,440 --> 00:12:42,800 Speaker 3: So he was very much also trying to talk to 240 00:12:42,840 --> 00:12:45,200 Speaker 3: the domestic audience as well as the kind of the 241 00:12:45,240 --> 00:12:49,880 Speaker 3: global back job, I mean, thinking about President Trump's policies. 242 00:12:49,960 --> 00:12:53,640 Speaker 3: As we're one hundred days in now to his second administration. 243 00:12:54,320 --> 00:12:57,079 Speaker 3: It was very interesting to read the Dallas FED survey 244 00:12:57,240 --> 00:13:02,960 Speaker 3: yesterday the views of American business leaders, manufacturers, chaos and 245 00:13:03,000 --> 00:13:07,080 Speaker 3: insanity the result of Trump Tariff's very strong language. 246 00:13:07,600 --> 00:13:10,439 Speaker 14: Well, it's interesting because you know, quite a few CEOs 247 00:13:10,480 --> 00:13:13,760 Speaker 14: have welcomed the Trump administration, so they were looking forward 248 00:13:13,760 --> 00:13:16,360 Speaker 14: to it. What they're looking for is a government that's 249 00:13:16,360 --> 00:13:20,920 Speaker 14: obviously low regulation for a start, that's very much pro business. 250 00:13:21,200 --> 00:13:24,360 Speaker 14: And you know, Donald Trump is on a surface level 251 00:13:24,400 --> 00:13:26,560 Speaker 14: saying things they want to hear. He wants to bring 252 00:13:26,640 --> 00:13:29,240 Speaker 14: business back to the US. He wants to make the 253 00:13:29,360 --> 00:13:32,440 Speaker 14: US you know great err again, even though it was 254 00:13:32,720 --> 00:13:35,480 Speaker 14: perhaps in his first term. But it's the way he's 255 00:13:35,520 --> 00:13:39,160 Speaker 14: going about it that's causing this disruption that they're probably 256 00:13:39,200 --> 00:13:43,160 Speaker 14: referring to, which is this very very dizzying pace of 257 00:13:43,200 --> 00:13:47,680 Speaker 14: policy making, the abrupt changes of position that are coming, 258 00:13:47,760 --> 00:13:49,720 Speaker 14: so he can change his mind a couple of hours 259 00:13:49,760 --> 00:13:53,160 Speaker 14: after announcing something. And if you're a big company trying 260 00:13:53,200 --> 00:13:57,600 Speaker 14: to develop your structure going forward, that's a really difficult 261 00:13:57,960 --> 00:14:01,600 Speaker 14: environment to be operating in. And you know, the concerns 262 00:14:01,600 --> 00:14:04,800 Speaker 14: are that what you see sentiment effects on US consumers. 263 00:14:05,320 --> 00:14:09,240 Speaker 14: Us consumers stop spending, you know, companies stop hiring, and 264 00:14:09,280 --> 00:14:12,440 Speaker 14: so that's really what CEOs are worried about. You know, 265 00:14:12,520 --> 00:14:15,480 Speaker 14: many of them, as I said, do actually support the 266 00:14:15,600 --> 00:14:20,080 Speaker 14: overarching message that comes from Donald Trump. The concern though, 267 00:14:20,080 --> 00:14:21,760 Speaker 14: obviously about the way that he's doing it. 268 00:14:22,120 --> 00:14:25,160 Speaker 4: So yeah, business leaders struggling to cope with the uncertainty. 269 00:14:25,160 --> 00:14:29,400 Speaker 4: But what about US voters after one hundred days of Trumps, 270 00:14:29,480 --> 00:14:32,000 Speaker 4: what's their verdict on you know, the president's aims to 271 00:14:32,160 --> 00:14:34,000 Speaker 4: remake the US at home and abroad. 272 00:14:34,280 --> 00:14:36,560 Speaker 13: Well, you can see that concerns are showing up there also. 273 00:14:36,640 --> 00:14:40,040 Speaker 14: I mean, the polling shows that Donald Trump's popularity is 274 00:14:40,120 --> 00:14:42,640 Speaker 14: taking a hit, and that's certainly something he's probably going 275 00:14:42,680 --> 00:14:45,600 Speaker 14: to be very attuned to. You can see that in 276 00:14:45,640 --> 00:14:50,480 Speaker 14: the possible reversal coming on auto tariffs to give relief 277 00:14:50,520 --> 00:14:53,840 Speaker 14: to auto companies. He's going to Michigan today to make 278 00:14:53,880 --> 00:14:56,280 Speaker 14: a big speech to mark his one hundred days. 279 00:14:56,600 --> 00:14:58,560 Speaker 13: At a time the auto companies. 280 00:14:58,120 --> 00:15:00,880 Speaker 14: Say, we're really worried about our outlook here and whether 281 00:15:00,920 --> 00:15:04,560 Speaker 14: we can continue to employ all our workers. So you 282 00:15:04,640 --> 00:15:07,880 Speaker 14: see a lot of uncertainty coming in for the ordinary 283 00:15:08,280 --> 00:15:11,480 Speaker 14: American in terms of, you know, their job security. You 284 00:15:11,520 --> 00:15:15,560 Speaker 14: see the cuts to government entities and so on, and 285 00:15:15,600 --> 00:15:19,720 Speaker 14: he's very very attuned to that above all, and you 286 00:15:19,760 --> 00:15:22,800 Speaker 14: know that's why he's pushing his tax cuts to try 287 00:15:22,800 --> 00:15:27,280 Speaker 14: and get those through Congress quicker than he initially had said. 288 00:15:27,440 --> 00:15:30,680 Speaker 14: So he wants to deliver something to them pretty quickly 289 00:15:30,760 --> 00:15:33,800 Speaker 14: on the tax side, and that's obviously a high concern 290 00:15:33,880 --> 00:15:35,080 Speaker 14: for him. 291 00:15:35,440 --> 00:15:38,640 Speaker 3: And then of course there's China and how they are 292 00:15:38,680 --> 00:15:42,760 Speaker 3: dealing with Trump and tariffs. In a meeting of bricks countries, 293 00:15:42,880 --> 00:15:46,640 Speaker 3: China was basically telling them to stand firm, that appeasement 294 00:15:46,680 --> 00:15:51,200 Speaker 3: would only embolden the bully, and they have repeatedly said, 295 00:15:51,240 --> 00:15:54,360 Speaker 3: you know, they aren't engaged in any trade talks, even 296 00:15:54,360 --> 00:15:56,600 Speaker 3: though that is what the Trump administration wants. 297 00:15:57,320 --> 00:15:59,720 Speaker 14: Yes, it's that tomato tomato thing of are they actually 298 00:15:59,760 --> 00:16:02,360 Speaker 14: talking in some fashion? Is it a form more versus 299 00:16:02,400 --> 00:16:06,080 Speaker 14: informal thing. I mean, obviously you can see that. You know, 300 00:16:06,280 --> 00:16:10,880 Speaker 14: having Trump come quite aggressively for China is actually helpful 301 00:16:10,920 --> 00:16:12,600 Speaker 14: for segping at home. 302 00:16:12,680 --> 00:16:14,360 Speaker 13: He's really pushing that narrative. 303 00:16:14,480 --> 00:16:18,560 Speaker 14: You can see the administration there really leaning into that 304 00:16:19,040 --> 00:16:22,600 Speaker 14: for their own support at home. But it also reflects 305 00:16:22,680 --> 00:16:25,600 Speaker 14: these efforts by the US to try and peel countries 306 00:16:25,680 --> 00:16:29,640 Speaker 14: away from China, because right now, if you're Europe you're saying, well, 307 00:16:29,680 --> 00:16:32,080 Speaker 14: I can't put all my eggs in the US baskets. 308 00:16:32,120 --> 00:16:33,800 Speaker 14: So we're going to have to talk to China on tray. 309 00:16:33,840 --> 00:16:35,760 Speaker 14: We're going to have to talk to countries in the 310 00:16:35,760 --> 00:16:38,000 Speaker 14: Middle East on tray. We have to diversify, and Donald 311 00:16:38,040 --> 00:16:40,200 Speaker 14: Trump is looking at that saying, oh, I don't want 312 00:16:40,200 --> 00:16:43,080 Speaker 14: that to happen. So he's trying to now say to countries, 313 00:16:43,160 --> 00:16:45,120 Speaker 14: I don't want you getting too close to China. He 314 00:16:45,200 --> 00:16:47,200 Speaker 14: really really does not like the bricks, and of course 315 00:16:47,240 --> 00:16:51,160 Speaker 14: that's a grip that's been expanding heavily over the past 316 00:16:51,160 --> 00:16:54,200 Speaker 14: few years. He doesn't want those countries during closer to China, 317 00:16:54,280 --> 00:16:56,560 Speaker 14: and that's really where that tension is coming. 318 00:16:57,440 --> 00:17:01,840 Speaker 4: Fascinating. Yes, it's an uncertain Jeffish environment Ross, thank you 319 00:17:01,880 --> 00:17:05,399 Speaker 4: for joining us. EMA News director Roslyn Mathson. There now 320 00:17:05,640 --> 00:17:08,640 Speaker 4: lots of earnings today and HSBC has reported pre tax 321 00:17:08,640 --> 00:17:11,160 Speaker 4: profit for the first quarter that beat the average. Analyss 322 00:17:11,200 --> 00:17:14,159 Speaker 4: essmate with CEO George L. Hendry, who took on the 323 00:17:14,160 --> 00:17:17,720 Speaker 4: top job in February, calling the numbers strong results. Joining 324 00:17:17,760 --> 00:17:20,600 Speaker 4: us now is Bloomberg's Charlie Wells. Morning, Charlie, So talk 325 00:17:20,680 --> 00:17:23,600 Speaker 4: us through HSBC earnings and maid the difficult backdrop of 326 00:17:23,680 --> 00:17:25,399 Speaker 4: Tariff's and US China tensions. 327 00:17:25,520 --> 00:17:27,480 Speaker 1: Yeah, Jack soon, there have been so much concerned that 328 00:17:27,520 --> 00:17:30,119 Speaker 1: you know, this bank probably you know, in contrast to 329 00:17:30,160 --> 00:17:32,000 Speaker 1: so many of the others, both in Europe and on 330 00:17:32,040 --> 00:17:35,720 Speaker 1: Wall Street has that huge Asia exposure, and it's also 331 00:17:35,760 --> 00:17:39,680 Speaker 1: got that huge trade facilitation exposure, and so those themes 332 00:17:39,720 --> 00:17:41,920 Speaker 1: in the markets right now have been what have made 333 00:17:41,960 --> 00:17:44,840 Speaker 1: analysts and investors nervous. At least for this quarter, a 334 00:17:44,840 --> 00:17:47,200 Speaker 1: lot of those fewers have been put to rest. They 335 00:17:47,200 --> 00:17:49,760 Speaker 1: did have that significant profit beat. But I think maybe 336 00:17:49,800 --> 00:17:52,399 Speaker 1: even better for a lot of these investors is the 337 00:17:52,520 --> 00:17:56,000 Speaker 1: three billion dollar stock buyback that they announced. So that's 338 00:17:56,000 --> 00:17:58,800 Speaker 1: going to please a lot of people. Also, you know, 339 00:17:59,000 --> 00:18:01,399 Speaker 1: this whole earning season, whatever business we're looking at, I 340 00:18:01,400 --> 00:18:03,600 Speaker 1: think the big question has been, Okay, sure you had 341 00:18:03,600 --> 00:18:05,680 Speaker 1: a great first quarter, that's fine. What does the rest 342 00:18:05,680 --> 00:18:07,960 Speaker 1: of this year look like? And what's really striking here? 343 00:18:07,960 --> 00:18:10,880 Speaker 1: What is a story of strength that HSBC is able 344 00:18:10,880 --> 00:18:13,840 Speaker 1: to tell. They're keeping their guidance for the year ahead 345 00:18:13,920 --> 00:18:16,119 Speaker 1: after evaluating plausible scenarios. 346 00:18:16,400 --> 00:18:17,880 Speaker 5: Okay, so that's on HSBC. 347 00:18:18,040 --> 00:18:22,359 Speaker 3: Meanwhile, Deutsche Bank earnings, the CFO James von Maltke speaking 348 00:18:22,359 --> 00:18:25,960 Speaker 3: to Bloomberg as he usually does, speaking to Bloomberg TV, 349 00:18:26,480 --> 00:18:30,840 Speaker 3: saying that some of their business units slow dramatically in April. 350 00:18:30,880 --> 00:18:32,439 Speaker 9: That's a statement, it is a statement. 351 00:18:32,480 --> 00:18:34,879 Speaker 1: I think it's this kind of mixed picture that we're getting, 352 00:18:34,920 --> 00:18:37,640 Speaker 1: I think, on you know, the positive side for this bank, 353 00:18:37,640 --> 00:18:40,480 Speaker 1: they had fixed income trading revenue that beat estimates. But 354 00:18:40,520 --> 00:18:43,200 Speaker 1: I think they're trying to square the circle here right 355 00:18:43,280 --> 00:18:46,080 Speaker 1: where there may have been a slowdown in some areas. 356 00:18:46,119 --> 00:18:47,480 Speaker 9: There's a lot of uncertainty. 357 00:18:47,640 --> 00:18:49,439 Speaker 1: And I think one of the big questions is, you know, 358 00:18:49,720 --> 00:18:53,520 Speaker 1: many of these banks got boosts from volatility, and I think, 359 00:18:53,800 --> 00:18:55,920 Speaker 1: are we moving from an era where there's this kind 360 00:18:55,920 --> 00:18:58,719 Speaker 1: of good volatility that helps trading, or and are we 361 00:18:58,760 --> 00:19:01,640 Speaker 1: moving to a period where there is bad volatility where 362 00:19:01,640 --> 00:19:04,159 Speaker 1: market participants start sitting on the sidelines. I think that's 363 00:19:04,200 --> 00:19:06,240 Speaker 1: one of the kind of the real tough questions that 364 00:19:06,240 --> 00:19:07,520 Speaker 1: we'll have to keep asking. 365 00:19:07,320 --> 00:19:10,040 Speaker 4: Good volatiotea and bad voltotea And I okay, so away 366 00:19:10,040 --> 00:19:12,359 Speaker 4: from the banks, what else are we watching this morning? 367 00:19:12,359 --> 00:19:13,520 Speaker 9: In AMA earnings? 368 00:19:13,640 --> 00:19:16,080 Speaker 1: Yeah, so look, we're getting some really interesting updates from 369 00:19:16,119 --> 00:19:19,440 Speaker 1: across the board. BP first quarter earnings are out, and 370 00:19:19,520 --> 00:19:22,520 Speaker 1: you know, we were just talking about buybacks. They were 371 00:19:22,520 --> 00:19:24,800 Speaker 1: able to announce a buydock on the lower end of 372 00:19:24,800 --> 00:19:27,400 Speaker 1: the guidance, So that's not going to be great. BP's 373 00:19:27,400 --> 00:19:30,880 Speaker 1: been under pressure right that oil price slide amid all 374 00:19:30,920 --> 00:19:34,240 Speaker 1: of this uncertainty and also the increase in supply that 375 00:19:34,280 --> 00:19:36,960 Speaker 1: we've seen in the market. That's really difficult for them, 376 00:19:37,200 --> 00:19:40,320 Speaker 1: and you know the automotive sector as well. Porsche cut 377 00:19:40,359 --> 00:19:43,880 Speaker 1: it's full year operating return. This is a company that's 378 00:19:43,880 --> 00:19:48,080 Speaker 1: really in the crosshairs of these Transatlantic tariffs because they 379 00:19:48,119 --> 00:19:50,720 Speaker 1: produce a lot of their luxury vehicles in Europe and 380 00:19:50,760 --> 00:19:52,440 Speaker 1: then export them to the United States. 381 00:19:52,720 --> 00:19:53,760 Speaker 9: That's difficult for them. 382 00:19:54,160 --> 00:19:58,480 Speaker 1: So yeah, more earnings on automotive coming this week as well. 383 00:19:58,960 --> 00:20:01,520 Speaker 15: This is Bloomberg day Break Europe, your morning brief on 384 00:20:01,600 --> 00:20:04,800 Speaker 15: the stories making news from London to Wall Street and beyond. 385 00:20:05,080 --> 00:20:09,040 Speaker 3: Look for us on your podcast feed every morning, on Apple, Spotify, 386 00:20:09,160 --> 00:20:11,080 Speaker 3: and anywhere else you get your podcasts. 387 00:20:11,160 --> 00:20:14,160 Speaker 15: You can also listen live each morning on London DAB Radio, 388 00:20:14,200 --> 00:20:16,919 Speaker 15: the Bloomberg Business app, and Bloomberg dot Com. 389 00:20:16,960 --> 00:20:19,679 Speaker 3: Our flagship New York station, is also available on your 390 00:20:19,760 --> 00:20:24,479 Speaker 3: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 391 00:20:24,720 --> 00:20:26,000 Speaker 5: I'm Caroline Hepka and. 392 00:20:25,960 --> 00:20:26,760 Speaker 9: I'm Stephen Carroll. 393 00:20:26,800 --> 00:20:29,159 Speaker 15: Join us again tomorrow morning for all the news you 394 00:20:29,240 --> 00:20:31,879 Speaker 15: need to start your day Right here on Bloomberg day 395 00:20:31,920 --> 00:20:36,600 Speaker 15: Break Europe.