1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,880 --> 00:00:13,800
Speaker 2: This is the Bloomberg Dayvacate podcast, available every morning on Apple, Spotify,

3
00:00:13,920 --> 00:00:16,479
Speaker 2: or wherever you listen. It's Friday, the twenty third of

4
00:00:16,520 --> 00:00:19,919
Speaker 2: May in London. I'm Caroline Hepka. Coming up today, the

5
00:00:19,960 --> 00:00:24,639
Speaker 2: Trump administration blocks Harvard from enrolling foreign students and warns

6
00:00:24,760 --> 00:00:28,360
Speaker 2: other universities could be next. The yield on thirty year

7
00:00:28,440 --> 00:00:32,960
Speaker 2: treasuries heads back above five percent as Trump's Big Beautiful

8
00:00:33,080 --> 00:00:37,159
Speaker 2: tax bill moves to the Senate. Plus Seeing into the Future,

9
00:00:37,360 --> 00:00:40,400
Speaker 2: Apple hopes to release a set of smart glasses by

10
00:00:40,400 --> 00:00:42,680
Speaker 2: the end of next year. Let's start with the roundup

11
00:00:42,680 --> 00:00:46,400
Speaker 2: of our top stories. The Trump administration has blocked Harvard

12
00:00:46,520 --> 00:00:51,040
Speaker 2: University from enrolling international students. In a statement, the US

13
00:00:51,080 --> 00:00:55,840
Speaker 2: Department of Homeland Security accused Harvard of fostering antisemitism, while

14
00:00:55,880 --> 00:01:00,040
Speaker 2: also claiming that the institution's leadership was coordinating with the

15
00:01:00,120 --> 00:01:04,479
Speaker 2: Chinese Communist Party. Speaking on Fox News, Homeland Security Sectary

16
00:01:04,560 --> 00:01:08,880
Speaker 2: Christie Nome warned that the administration is considering blocking international

17
00:01:09,000 --> 00:01:11,280
Speaker 2: enrollment at other universities.

18
00:01:11,680 --> 00:01:14,039
Speaker 3: There should be a warning to every other university to

19
00:01:14,080 --> 00:01:16,640
Speaker 3: get your act together. Get your act together, because we

20
00:01:16,720 --> 00:01:20,200
Speaker 3: are coming to make sure that these programs that you

21
00:01:20,240 --> 00:01:23,680
Speaker 3: are facilitating an environment where students can learn, where they're safe,

22
00:01:23,760 --> 00:01:26,760
Speaker 3: and that they're not discriminated against based on their race

23
00:01:26,840 --> 00:01:30,039
Speaker 3: or their religion. Anti Semitism will not be stood for

24
00:01:30,240 --> 00:01:32,840
Speaker 3: in any participation with a country or an entity or

25
00:01:32,840 --> 00:01:36,840
Speaker 3: a terrorist group that hates America and perpetuates this kind

26
00:01:36,880 --> 00:01:38,760
Speaker 3: of violence, we will stop it.

27
00:01:39,160 --> 00:01:42,680
Speaker 2: Christi Nome appearing there on Fox News as the administration

28
00:01:42,800 --> 00:01:46,840
Speaker 2: said that existing international students must transfer or lose their

29
00:01:46,959 --> 00:01:50,600
Speaker 2: legal status in the US. The response from Harvard that

30
00:01:50,640 --> 00:01:55,000
Speaker 2: the government's latest action is unlawful. Harvard President emeritus and

31
00:01:55,080 --> 00:02:00,920
Speaker 2: former US Treasury Secretary Larry Summers blasted the Trump administer's decision,

32
00:02:01,240 --> 00:02:04,040
Speaker 2: saying that it goes against the principles of democracy.

33
00:02:04,800 --> 00:02:12,200
Speaker 4: Harvard has a clear necessity right now resist and reform.

34
00:02:12,800 --> 00:02:17,600
Speaker 4: Resist because this is the stuff of tyranny. And if

35
00:02:17,639 --> 00:02:19,480
Speaker 4: an institution like Harvard, with.

36
00:02:19,480 --> 00:02:23,040
Speaker 5: A fifty two billion dollar endowment, with the staggering of

37
00:02:23,120 --> 00:02:28,560
Speaker 5: network of alumni that we have, if it can't resist

38
00:02:28,880 --> 00:02:32,520
Speaker 5: these kinds of movements towards tyranny, I don't know what

39
00:02:32,680 --> 00:02:36,440
Speaker 5: other American institution will be able to do that.

40
00:02:37,360 --> 00:02:41,840
Speaker 2: Larry Summers speaking there to Bloomberg, the blockade on international

41
00:02:41,880 --> 00:02:46,400
Speaker 2: student enrollment will compound the financial pressures for Harvard. The

42
00:02:46,480 --> 00:02:49,800
Speaker 2: Trump administration has already frozen more than two point six

43
00:02:49,880 --> 00:02:53,119
Speaker 2: billion dollars of funding for the university and cut off

44
00:02:53,160 --> 00:02:57,399
Speaker 2: future grants over the school's handling of alleged anti Semitism

45
00:02:57,720 --> 00:03:01,680
Speaker 2: and government demands for more over site. Meanwhile, the US

46
00:03:01,760 --> 00:03:05,360
Speaker 2: Supreme Court has shielded the Federal Reserve on President Trump's

47
00:03:05,400 --> 00:03:09,960
Speaker 2: push to fire top officials at independent federal agencies. In

48
00:03:10,000 --> 00:03:13,240
Speaker 2: a ruling on Thursday that allowed the administration to oust

49
00:03:13,280 --> 00:03:18,839
Speaker 2: officials to other agencies, It called the FED a uniquely structured,

50
00:03:19,000 --> 00:03:23,520
Speaker 2: quasi private entity. The decision will likely quell concerns about

51
00:03:23,560 --> 00:03:28,040
Speaker 2: the ability of the President to fire FED chair Jerown Powell.

52
00:03:28,280 --> 00:03:33,399
Speaker 2: President Trump sent conflicting signals last month, saying that Powell's

53
00:03:33,480 --> 00:03:37,680
Speaker 2: termination cannot come fast enough, before then telling reporters he

54
00:03:37,760 --> 00:03:41,880
Speaker 2: had no intention of firing him. US House Republicans have

55
00:03:41,920 --> 00:03:45,200
Speaker 2: passed a major tax cup bill, which is increasingly giving

56
00:03:45,240 --> 00:03:49,320
Speaker 2: the bond market indigestion. The Senate is yet to weigh

57
00:03:49,440 --> 00:03:52,520
Speaker 2: in on the bill, which promises to extend tax cards

58
00:03:52,720 --> 00:03:57,360
Speaker 2: from President Trump's first term in office with added exemptions.

59
00:03:57,720 --> 00:04:01,080
Speaker 2: Principal Asset Management's chief Global strut to just Seema Shah

60
00:04:01,400 --> 00:04:04,160
Speaker 2: says the package is on a collision course with the

61
00:04:04,200 --> 00:04:05,720
Speaker 2: markets increasingly.

62
00:04:05,760 --> 00:04:08,040
Speaker 6: It feels like this administration is going to have to

63
00:04:08,040 --> 00:04:11,880
Speaker 6: confront the problems because the bond marker has lost patients

64
00:04:11,920 --> 00:04:15,040
Speaker 6: and it's really going to force the issue through to

65
00:04:15,120 --> 00:04:18,680
Speaker 6: make sure that there is some realization that continuing to

66
00:04:18,760 --> 00:04:22,279
Speaker 6: expand its deficit its debt numbers indefinitely is simply not

67
00:04:22,360 --> 00:04:23,640
Speaker 6: something which can continue.

68
00:04:23,839 --> 00:04:27,320
Speaker 2: Sima Shah adds that she already sees pressure in ecity

69
00:04:27,400 --> 00:04:30,760
Speaker 2: markets from high bond yields and warns that that may grow.

70
00:04:31,279 --> 00:04:34,800
Speaker 2: The thirty year treasury bond touched five point one five

71
00:04:34,920 --> 00:04:39,080
Speaker 2: percent yesterday before pairing back to five spots zero nine.

72
00:04:39,720 --> 00:04:42,720
Speaker 2: US President Donald Trump initiated a phone call with Japan's

73
00:04:42,720 --> 00:04:46,760
Speaker 2: Prime Minister Shagero Issuba and discussed tariffs for the first

74
00:04:46,800 --> 00:04:50,440
Speaker 2: time since April. The conversation between the two leaders comes

75
00:04:50,480 --> 00:04:54,040
Speaker 2: as Tokyo's top negotiator travels to the US for another

76
00:04:54,160 --> 00:04:57,920
Speaker 2: round of trade talks. According to Ishaba, President Trump avoided

77
00:04:57,920 --> 00:05:01,520
Speaker 2: saying anything specific about tariffs, whilst he for his part,

78
00:05:01,640 --> 00:05:06,440
Speaker 2: reiterated Japan's existing stance on levees. The two agreed that

79
00:05:06,440 --> 00:05:08,840
Speaker 2: they're looking forward to meeting in person at a Group

80
00:05:08,880 --> 00:05:13,800
Speaker 2: of Seven leaders gathering in June in Canada. According to Ishiba,

81
00:05:13,880 --> 00:05:17,200
Speaker 2: Christine Lagarde has warned international trade will never be the

82
00:05:17,279 --> 00:05:20,679
Speaker 2: same after US tariff tensions. This was during an interview

83
00:05:20,720 --> 00:05:24,360
Speaker 2: with the Canadian Broadcasting Corporation, speaking on the sidelines of

84
00:05:24,400 --> 00:05:28,760
Speaker 2: the G seven finance officials meeting. The ECB president did

85
00:05:28,800 --> 00:05:32,720
Speaker 2: note that she expects further negotiations over international levees. In

86
00:05:32,760 --> 00:05:36,560
Speaker 2: a separate interview, Legard said that the impact of tariff's

87
00:05:36,560 --> 00:05:40,400
Speaker 2: on inflation is hard to gauge for European policy makers,

88
00:05:40,720 --> 00:05:45,080
Speaker 2: making it a quote delicate situation. ECB officials are widely

89
00:05:45,160 --> 00:05:48,680
Speaker 2: expected to lower boring costs in two weeks time, with

90
00:05:48,800 --> 00:05:52,760
Speaker 2: inflation heading towards the two percent goal in Europe and

91
00:05:53,080 --> 00:05:57,840
Speaker 2: US tariffs also weighing on the European economy now here.

92
00:05:57,880 --> 00:06:00,880
Speaker 2: In the UK, consumer confidence rebounded slow lightly in May

93
00:06:01,040 --> 00:06:04,200
Speaker 2: on the back of trade deals and an interest rate cut.

94
00:06:04,320 --> 00:06:10,279
Speaker 2: GfK's sentiment gauge surprise upraas rising three points from April

95
00:06:10,320 --> 00:06:13,480
Speaker 2: two minus twenty. Bloomberg's James Walcock.

96
00:06:13,120 --> 00:06:17,480
Speaker 7: Has the story rising bills, fears around growth and global

97
00:06:17,520 --> 00:06:21,760
Speaker 7: economic uncertainty. You'd expect a healthy dose of negativity, but

98
00:06:21,880 --> 00:06:24,760
Speaker 7: consumers seem to be looking on the bright side of life.

99
00:06:25,080 --> 00:06:28,919
Speaker 7: The latest GfK survey's upward surprise suggests the Labor government's

100
00:06:29,000 --> 00:06:33,520
Speaker 7: series of deals is shifting the public mood marginally upwards.

101
00:06:33,960 --> 00:06:38,120
Speaker 7: But will the sentiment feed through into reality, particularly GDP

102
00:06:38,320 --> 00:06:41,240
Speaker 7: and spending metrics. That is what the government will be

103
00:06:41,279 --> 00:06:44,400
Speaker 7: hoping in London James Walcock, Bloomberg Radio.

104
00:06:44,440 --> 00:06:47,960
Speaker 2: And lastly, Apple is aiming to release new smart glasses

105
00:06:48,000 --> 00:06:49,960
Speaker 2: at the end of next year as part of its

106
00:06:49,960 --> 00:06:54,719
Speaker 2: push into AI enhanced gadgets. Exclusive reporting by Bloomberg reveals

107
00:06:54,839 --> 00:06:57,560
Speaker 2: engineers that the company are ramping up work on the product,

108
00:06:57,839 --> 00:07:01,440
Speaker 2: with prototypes expected by the air of this year. The

109
00:07:01,480 --> 00:07:05,719
Speaker 2: glasses would have cameras, microphones, and speakers to take Siri

110
00:07:05,839 --> 00:07:09,120
Speaker 2: requests and analyze the world around the user. The tech

111
00:07:09,200 --> 00:07:13,080
Speaker 2: chunt is looking to challenge competition from rivals including Meta,

112
00:07:13,680 --> 00:07:16,920
Speaker 2: known for their AI ray bands. And those are our

113
00:07:16,920 --> 00:07:19,920
Speaker 2: top stories for you this morning. So in terms of

114
00:07:19,920 --> 00:07:23,000
Speaker 2: the market, saying Asian shares are rebounding, THEMSCR Asia Pacific

115
00:07:23,000 --> 00:07:25,520
Speaker 2: index is actually up half of one percent, and you've

116
00:07:25,560 --> 00:07:29,080
Speaker 2: got gains across Asia this morning. Thinking about stock futures,

117
00:07:29,080 --> 00:07:32,200
Speaker 2: then for the US, we're pretty range bound. Actually, the

118
00:07:32,320 --> 00:07:34,600
Speaker 2: sm P five hundred emini is not going anywhere. Your

119
00:07:34,600 --> 00:07:37,640
Speaker 2: SOX fifty futures are up by a tenth of one percent.

120
00:07:37,800 --> 00:07:41,600
Speaker 2: Bonds and the dollar gained on Thursday. You've got, though

121
00:07:41,640 --> 00:07:44,400
Speaker 2: the dollar resuming weakness this morning, down by three tenths

122
00:07:44,400 --> 00:07:47,600
Speaker 2: of one percent. And of course we've been closely watching

123
00:07:47,960 --> 00:07:52,760
Speaker 2: long term borrowing costs, the thirty year yesterday, which remains

124
00:07:52,800 --> 00:07:55,960
Speaker 2: above a five percent this morning, looking at the ten

125
00:07:56,000 --> 00:07:59,720
Speaker 2: year US yields we trade now for fifty three, Bitcoin

126
00:08:00,080 --> 00:08:04,000
Speaker 2: has drifted and oil prices are down. Gold though higher

127
00:08:04,040 --> 00:08:06,120
Speaker 2: six tenths of one percent. So that's a look at

128
00:08:06,160 --> 00:08:08,720
Speaker 2: the markets now. In a moment, we're going to bring

129
00:08:08,720 --> 00:08:12,160
Speaker 2: you more on today's top story, the Trump administrations fight

130
00:08:12,320 --> 00:08:16,320
Speaker 2: with Harvard and the growing unease in bond markets about

131
00:08:16,360 --> 00:08:19,520
Speaker 2: President Trump's tax and spending bill, which squeaked through a

132
00:08:19,600 --> 00:08:23,840
Speaker 2: vote in Congress on Thursday. But before we get to those,

133
00:08:23,880 --> 00:08:26,600
Speaker 2: another story that caught my eye today. I know, you

134
00:08:26,680 --> 00:08:29,520
Speaker 2: know we're obsessed with food, but This story did catch

135
00:08:29,560 --> 00:08:32,440
Speaker 2: my eye because now I have some great FOODI recommendations

136
00:08:32,440 --> 00:08:35,680
Speaker 2: for London from the wonderful Aileen Bagbo who's been writing

137
00:08:35,720 --> 00:08:41,760
Speaker 2: about chefs creating incredible, innovative Caribbean food in London and

138
00:08:41,800 --> 00:08:44,400
Speaker 2: they're on a mission, she says, to bring recognition and

139
00:08:44,440 --> 00:08:47,679
Speaker 2: a Michelin star to their cuisine. So she's been talking

140
00:08:47,720 --> 00:08:50,600
Speaker 2: to people like Dominic Taylor, who has a new restaurant

141
00:08:50,640 --> 00:08:53,480
Speaker 2: in ladbut Grove in London if you're a resident in

142
00:08:53,520 --> 00:08:57,120
Speaker 2: the city after his standout residency at the Palm Court

143
00:08:57,120 --> 00:09:00,439
Speaker 2: at the Langham Hotel. His dishes including rum raised in

144
00:09:00,520 --> 00:09:04,600
Speaker 2: pork belly, crispy spice, banana blossoms. Yes, maybe I'm hungry,

145
00:09:04,600 --> 00:09:07,000
Speaker 2: it's Friday morning. But she's also spoken to a lot

146
00:09:07,040 --> 00:09:11,280
Speaker 2: of other chefs, including Jason Howard, and she lists a

147
00:09:11,280 --> 00:09:14,120
Speaker 2: lot of different restaurants in London like Soul Mamma in

148
00:09:14,160 --> 00:09:17,880
Speaker 2: Stratford and Jam Delish in Islington. Anyway, gave me inspiration

149
00:09:17,960 --> 00:09:20,240
Speaker 2: from my weekend. I hope it's inspired you to go

150
00:09:20,280 --> 00:09:23,560
Speaker 2: out and eat something delicious in London. I'll put a

151
00:09:23,640 --> 00:09:27,120
Speaker 2: note actually in our show. Notes to the story by

152
00:09:27,200 --> 00:09:30,080
Speaker 2: Eileen of Bagbert at Bloomberg so that you can get

153
00:09:30,080 --> 00:09:32,920
Speaker 2: all the details. Now, the Trump administration has blocked Harvard

154
00:09:33,000 --> 00:09:36,840
Speaker 2: University film enrolling international students, citing the university's failure to

155
00:09:36,880 --> 00:09:41,480
Speaker 2: condemn anti semitism. It is a major escalation of a

156
00:09:41,520 --> 00:09:44,480
Speaker 2: fight with elite US universities. You only me now has

157
00:09:44,480 --> 00:09:47,720
Speaker 2: been both EMA News director ross In matheson Morning Ross.

158
00:09:48,160 --> 00:09:51,120
Speaker 2: How does the Trump administration justify this? What does it

159
00:09:51,160 --> 00:09:55,600
Speaker 2: say about revoking Harvard's student and exchange visitor program, which

160
00:09:55,640 --> 00:09:56,560
Speaker 2: is the official name.

161
00:09:57,320 --> 00:09:59,400
Speaker 8: Well, that's right, as you say they're threatening to do this,

162
00:09:59,440 --> 00:10:02,839
Speaker 8: the actually get and Harvard seventy two hours to come good.

163
00:10:02,920 --> 00:10:04,480
Speaker 8: And what they say is they've been trying to get

164
00:10:04,480 --> 00:10:08,160
Speaker 8: Harvard to turn over a lot of information on their students,

165
00:10:08,200 --> 00:10:11,600
Speaker 8: so some of the student records, their own internal records

166
00:10:11,600 --> 00:10:14,920
Speaker 8: for disciplinary action if any video footage and so on.

167
00:10:15,000 --> 00:10:18,320
Speaker 8: Because the broader allegation, of course, is that Harvard has

168
00:10:18,520 --> 00:10:22,800
Speaker 8: fostered a climate of antisemitism in its student body and

169
00:10:22,840 --> 00:10:26,319
Speaker 8: on campus as a whole, and that Harvard has actually

170
00:10:26,360 --> 00:10:30,200
Speaker 8: apologized for that already saying that yes, there was some

171
00:10:30,280 --> 00:10:35,960
Speaker 8: antisemitism related to protests over Israel's war in Gaza, but

172
00:10:36,040 --> 00:10:39,080
Speaker 8: equally it's been declining to turn this information over, and

173
00:10:39,120 --> 00:10:41,720
Speaker 8: so now we see the escalation, which is, if you

174
00:10:41,760 --> 00:10:44,720
Speaker 8: don't turn this over in seventy two hours, we're going

175
00:10:44,760 --> 00:10:47,800
Speaker 8: to make it impossible for you to have international students,

176
00:10:47,840 --> 00:10:51,760
Speaker 8: which would be a massive, massive escalation for Harvard and

177
00:10:51,800 --> 00:10:54,960
Speaker 8: really call into questions the university. It's been around for

178
00:10:55,120 --> 00:10:58,240
Speaker 8: hundreds of years, but if you thirty percent of your

179
00:10:58,280 --> 00:11:02,000
Speaker 8: student body come from abroad, the question is what does

180
00:11:02,040 --> 00:11:03,960
Speaker 8: it do to Harvard's ability to keep going?

181
00:11:04,360 --> 00:11:06,440
Speaker 2: So what's the university saying and doing about this?

182
00:11:07,280 --> 00:11:10,560
Speaker 8: So Harvard says that they defend the right to have

183
00:11:10,640 --> 00:11:14,640
Speaker 8: international students, that they welcome international students, they're working to

184
00:11:14,679 --> 00:11:18,120
Speaker 8: be able to preserve this, and that they have students

185
00:11:18,120 --> 00:11:20,160
Speaker 8: from one hundred and forty countries around the world. And

186
00:11:20,200 --> 00:11:23,600
Speaker 8: they point out it doesn't just enrich Harvard, the university,

187
00:11:23,640 --> 00:11:27,840
Speaker 8: but obviously the greater area because Harvard students come and

188
00:11:27,880 --> 00:11:32,160
Speaker 8: pay tuition, but they also come and eat, live, spend

189
00:11:32,240 --> 00:11:34,320
Speaker 8: and so on, and so you're talking about quite a

190
00:11:34,360 --> 00:11:38,640
Speaker 8: big part of the economy as well for the US.

191
00:11:38,720 --> 00:11:41,440
Speaker 8: And so they haven't said what they're going to do,

192
00:11:41,480 --> 00:11:44,240
Speaker 8: if anything legally, of course, there's other legal action going

193
00:11:44,320 --> 00:11:47,959
Speaker 8: on with Harvard over some of the funding that's been

194
00:11:48,000 --> 00:11:51,120
Speaker 8: frozen or lost two point six billion dollars of it.

195
00:11:51,240 --> 00:11:52,880
Speaker 8: And so do they go down the route do they

196
00:11:53,000 --> 00:11:56,040
Speaker 8: argue that due process was not followed here? If they're

197
00:11:56,040 --> 00:11:57,800
Speaker 8: going to do legal action, you'd imagine that have to

198
00:11:57,800 --> 00:11:58,960
Speaker 8: announce that pretty quickly.

199
00:11:59,120 --> 00:12:01,520
Speaker 2: Yeah, it's a huge part of America's soft power, isn't it.

200
00:12:01,600 --> 00:12:04,600
Speaker 2: Larry Sommers was sort of talking about that that these

201
00:12:04,600 --> 00:12:08,199
Speaker 2: students coming from on Board, they create businesses, they invent things.

202
00:12:08,679 --> 00:12:10,800
Speaker 2: You know, they're the best and the brightest, you know,

203
00:12:11,160 --> 00:12:15,520
Speaker 2: according to him. Anyway, Homeland Security Secutary Christy Nome though,

204
00:12:15,760 --> 00:12:18,960
Speaker 2: was clear, wasn't she that in terms of the warning

205
00:12:19,000 --> 00:12:21,760
Speaker 2: to other universities that they need to get their act together,

206
00:12:21,840 --> 00:12:23,520
Speaker 2: what do you think is going to mean for higher

207
00:12:23,640 --> 00:12:24,800
Speaker 2: education in the US?

208
00:12:25,360 --> 00:12:29,600
Speaker 8: Well, we can also see potential warnings against Columbia University.

209
00:12:29,720 --> 00:12:32,760
Speaker 8: So it's not just Harvard that seems to be targeted

210
00:12:32,840 --> 00:12:36,480
Speaker 8: here potentially, and as you say, the broader message around

211
00:12:37,360 --> 00:12:41,640
Speaker 8: international students, but not just students but academics. This goes

212
00:12:42,040 --> 00:12:44,240
Speaker 8: to the heart really of the ability of the US

213
00:12:44,400 --> 00:12:49,480
Speaker 8: to bring in smart people to do science, to do research,

214
00:12:49,600 --> 00:12:53,920
Speaker 8: to innovate and to contribute to the US economy through that.

215
00:12:54,040 --> 00:12:57,280
Speaker 8: And do those people rather than going into the US

216
00:12:57,720 --> 00:12:59,960
Speaker 8: start to look to go elsewhere. So you can see,

217
00:13:00,120 --> 00:13:03,360
Speaker 8: we get all those questions around brain drain that come up.

218
00:13:03,880 --> 00:13:07,040
Speaker 8: Do academics to students up to go elsewhere? And so

219
00:13:07,200 --> 00:13:10,640
Speaker 8: do you see the US Bitberg bit slowly lose out?

220
00:13:10,880 --> 00:13:11,120
Speaker 9: Yeah?

221
00:13:11,200 --> 00:13:13,200
Speaker 2: Okay, Well, thank you so much for being with us

222
00:13:13,280 --> 00:13:16,480
Speaker 2: this morning. Certainly caught the attention of our readers. They

223
00:13:16,520 --> 00:13:18,719
Speaker 2: are the most well read stories at the moment. Two

224
00:13:18,800 --> 00:13:21,000
Speaker 2: or three of the top red stories on the Bloomberg

225
00:13:21,080 --> 00:13:26,040
Speaker 2: terminal around Harvard. That was Bloomberg's EMEA News director Roslyn Matheson. Now,

226
00:13:26,040 --> 00:13:28,920
Speaker 2: President Trump has passed his tax bill in the House.

227
00:13:28,960 --> 00:13:32,160
Speaker 2: Now the signature legislative package goes to the Senate. But

228
00:13:32,200 --> 00:13:35,880
Speaker 2: the bond markets showing the unease of investors. Thirty US

229
00:13:35,920 --> 00:13:38,400
Speaker 2: treasury yields reached a peak of five point one five

230
00:13:38,400 --> 00:13:42,000
Speaker 2: percent in the US this week. Our Bloomberg Markets Live trashes.

231
00:13:42,040 --> 00:13:45,040
Speaker 2: Mary Nicola joins me this morning, Hi, Mary, how much

232
00:13:45,080 --> 00:13:47,040
Speaker 2: are the bond markets? Good morning? How much are the

233
00:13:47,080 --> 00:13:51,400
Speaker 2: bond markets dislike even hate this Trump tax cut bill?

234
00:13:52,160 --> 00:13:54,080
Speaker 9: Yeah, it's very clear that the pressure is going to

235
00:13:54,120 --> 00:13:58,360
Speaker 9: remain on the bond markets because it's the overall tax

236
00:13:58,440 --> 00:14:02,760
Speaker 9: bill has been more about tax cuts than spending cuts,

237
00:14:02,840 --> 00:14:06,600
Speaker 9: and that is obviously not sitting well with bond markets,

238
00:14:06,600 --> 00:14:10,040
Speaker 9: with bond investors. And of course, now that it's past

239
00:14:10,600 --> 00:14:12,560
Speaker 9: the House, it's going to go to the Senate, and

240
00:14:12,600 --> 00:14:14,960
Speaker 9: of course that's going to be a drawn out process

241
00:14:15,000 --> 00:14:19,720
Speaker 9: as well. So tensions aren't going anywhere in the bond markets,

242
00:14:19,800 --> 00:14:22,760
Speaker 9: and I think if you look at the longer end,

243
00:14:22,880 --> 00:14:25,320
Speaker 9: I think they're likely to stay elevated for quite some

244
00:14:25,520 --> 00:14:31,320
Speaker 9: time as the focus shifts and fot on physical sustainability

245
00:14:31,480 --> 00:14:34,640
Speaker 9: and how much can this actually hold up?

246
00:14:35,040 --> 00:14:35,240
Speaker 6: Yeah?

247
00:14:35,280 --> 00:14:38,000
Speaker 2: Absolutely, It passed two hundred and fifteen to two hundred

248
00:14:38,040 --> 00:14:41,320
Speaker 2: and fourteen votes in the House, so it really was closed.

249
00:14:41,640 --> 00:14:45,240
Speaker 2: The job administration argues the bill will boost and increase

250
00:14:45,320 --> 00:14:50,239
Speaker 2: business sentiment, unlock spending and investment. It's promising growth effectively.

251
00:14:50,680 --> 00:14:51,560
Speaker 2: Is that not enough?

252
00:14:52,960 --> 00:14:55,520
Speaker 9: Especially with what's happening on the terariff side, And there's

253
00:14:55,520 --> 00:14:58,400
Speaker 9: still a lot of uncertainty. So if we look at

254
00:14:58,440 --> 00:15:01,160
Speaker 9: what we saw from corporate earnings in corporate outlooks, the

255
00:15:01,200 --> 00:15:04,680
Speaker 9: main thing, Yes, corporate earnings were fine, but it was

256
00:15:04,720 --> 00:15:08,080
Speaker 9: the outlooks. The outlooks were concerning. There was a lot

257
00:15:08,120 --> 00:15:11,920
Speaker 9: of murkiness surrounding the outlook for a lot of companies,

258
00:15:12,040 --> 00:15:16,480
Speaker 9: with even some questioning you know how things would unfold,

259
00:15:16,680 --> 00:15:23,320
Speaker 9: especially with retailers and Walmart even raising concerns about increasing

260
00:15:23,400 --> 00:15:26,920
Speaker 9: price prices over the next few months. So if you

261
00:15:27,040 --> 00:15:30,240
Speaker 9: still have that policy uncertainty, it may not be enough

262
00:15:32,360 --> 00:15:35,320
Speaker 9: to so with the terriff uncertainty, it may not be

263
00:15:35,440 --> 00:15:38,360
Speaker 9: enough to overshadow some of the benefits that can come

264
00:15:38,400 --> 00:15:41,280
Speaker 9: through from the tax bill, and of course the fact

265
00:15:41,320 --> 00:15:45,320
Speaker 9: that you don't have fiscal sustainability as well, that's going

266
00:15:45,400 --> 00:15:46,640
Speaker 9: to keep markets nervous.

267
00:15:48,960 --> 00:15:51,680
Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

268
00:15:51,760 --> 00:15:54,800
Speaker 1: stories making news from London to Wall Street and beyond.

269
00:15:55,080 --> 00:15:58,280
Speaker 2: Look for us on your podcast feed every morning, on Apple,

270
00:15:58,400 --> 00:16:01,080
Speaker 2: Spotify and anywhere else you get your podcasts.

271
00:16:01,160 --> 00:16:04,160
Speaker 1: You can also listen live each morning on London DAB Radio,

272
00:16:04,200 --> 00:16:06,920
Speaker 1: the Bloomberg Business app, and Bloomberg dot Com.

273
00:16:06,960 --> 00:16:09,720
Speaker 2: Our flagship New York station, is also available on your

274
00:16:09,760 --> 00:16:14,480
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

275
00:16:14,680 --> 00:16:17,360
Speaker 1: I'm Caroline Hepka and I'm Stephen Carroll. Join us again

276
00:16:17,400 --> 00:16:19,960
Speaker 1: tomorrow morning for all the news you need to start

277
00:16:20,000 --> 00:16:22,120
Speaker 1: your day right here on Bloomberg Daybreak.

278
00:16:22,120 --> 00:16:26,600
Speaker 8: Europe