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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 At podcast, available

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

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Speaker 2: the fourteenth of April in London. I'm Caroline Hepkere and.

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Speaker 3: I'm Stephen Carroll. Coming up today. The dollar drops as

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Speaker 3: Donald Trump downplays his tariff pause on electronics and vow's

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Speaker 3: new levies on the sector.

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Speaker 2: Exports to the US from China surge in March as

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Speaker 2: firm scrambled to source goods before duties push up costs.

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Speaker 3: Plus forging ahead, UK officials race to secure the crucial

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Speaker 3: materials needed to keep British steals blast furnaces running.

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

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Speaker 3: President Donald Trump says a pause on tariffs for certain

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Speaker 3: electronics is only temporary, insisting in his words that nobody

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Speaker 3: is getting off the hook. On Friday, the US announced

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Speaker 3: that popular consumer electronics, including phones and apptops, would be

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Speaker 3: exempt from the planned one hundred and twenty five percent

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Speaker 3: tariff on Chinese goods and ten percent global levies, but

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Speaker 3: over the weekend it became clear that those products would

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Speaker 3: soon face separate charges. Posting on truth social On Sunday,

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Speaker 3: Trump said the exempted items were just moving to a

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Speaker 3: different tariff bucket, and that the administration would now be

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Speaker 3: focusing on semiconductors and the whole electronics supply chain. Speaking

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Speaker 3: to reporters on Air Force one, Trump gave further details

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Speaker 3: of his plan.

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Speaker 4: The tariffs will be in place in the non distant future, because,

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Speaker 4: as you know, like we did with steel, like we

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Speaker 4: did with automobiles, like we did with aluminum, which are

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Speaker 4: now fully on, we'll be doing that with semiconductors, with

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Speaker 4: chips and numerous other things. And that'll take place in

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Speaker 4: the very near.

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Speaker 2: Future, probably the semiconductor tear I'm going to.

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Speaker 4: Be announcing it over the next week.

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Speaker 3: It's not yet clear what tariff rate Trump plans to

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Speaker 3: apply to semiconductors and related products, but other sectors such

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Speaker 3: as stealing off face levees of twenty five percent. This

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Speaker 3: latest twist comes as countries and global markets continue to

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Speaker 3: be whipsored by a flurry of walk backs, carve outs,

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Speaker 3: and concessions from the administration.

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Speaker 2: The news that the technology sector is likely to get

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Speaker 2: only a temporary reprieve from tariffs has helped to drive

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Speaker 2: the green back to fresh lows. The BlueBag Dollar Spot

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Speaker 2: index slipped on Monday after tumbling two point four percent

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Speaker 2: last week amid escalating trade tensions with China and concerns

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Speaker 2: about US growth slowing down. The move lower comes as

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Speaker 2: traders pay close attention to the US treasury market following

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Speaker 2: last week's route. Bob Michael, global head of fixed income

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Speaker 2: at JP Morgan Asset Management, says the worst of the

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Speaker 2: sell off has likely now happened.

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Speaker 5: I think there's still a bit more of a washout

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Speaker 5: to go. I think there are still the investors that

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Speaker 5: are coming in overseas that have seen the downward price

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Speaker 5: moves and maybe unwinding some position. But I feel pretty

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Speaker 5: good that we're putting in a low in price and

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Speaker 5: a high end yield here.

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Speaker 2: Well, Michael speaking there. As markets continue to digest the

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Speaker 2: latest tariff news out of Washington, Equity index futures for

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Speaker 2: both the US and Europe are pointing high this morning. However,

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Speaker 2: a rise in the price of gold, which hit a

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Speaker 2: new record high, suggests investors remain cautious about what lies ahead.

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Speaker 3: The latest tariff moves from the US come as new

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Speaker 3: data shows China's exports surge till last month, exports in

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Speaker 3: dollar terms far exceeded all forecasts to rise by twelve

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Speaker 3: point four percent, with a near nine percent rise in

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Speaker 3: goods being sent to the US. The figure suggests that

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Speaker 3: many companies were front loading orders in March to get

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Speaker 3: ahead of looming tariffs. The data also reveals the Chinese

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Speaker 3: exports to Southeast Asia reached their second highest level on record,

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Speaker 3: suggesting firms are diverting shipments to countries across the region.

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Speaker 2: Here in the UK, corporate finance chiefs have been adopting

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Speaker 2: defensive positions even before the prospect of a global trade war.

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Speaker 2: This according to a new study showing British businesses are

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Speaker 2: playing it safe. Bloomberg's Tea Adebayo has more.

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Speaker 6: Just twelve percent of the UK's chief financial officers think

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Speaker 6: now as a good time to take more risks. That's

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Speaker 6: half the long term average. The data gathered by consulting

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Speaker 6: firm Deloitte, was collected in March this year, just before

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Speaker 6: Donald Trump's global tariff program was unleashed. The last time

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Speaker 6: risk appetite levels were this low, the country was dealing

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Speaker 6: with the onset of the COVID pandemic in early twenty twenty.

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Speaker 6: It will make sobering reading for Prime Minister Keir Starmer,

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Speaker 6: whose Labour government has pledged to speed up economic growth.

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Speaker 6: CFOs are also prioritizing cutting costs and predicting a sharp

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Speaker 6: hiring decline over the next year. In London, to your

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Speaker 6: Adebayo Bloomberg Radio.

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Speaker 3: British officials are raising to find the materials to keep

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Speaker 3: the last steelmaker in the country going after season control

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Speaker 3: of the company from its Chinese owners. An emergency session

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Speaker 3: of Parliament gave the government power to run British Steel

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Speaker 3: after talks with its parent company Jinye broke down. Business

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Speaker 3: Secretary Jonathan Reynolds says the Chinese FIRN left them with

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Speaker 3: no choice.

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Speaker 7: In this situation, with the clock being run down, Doing

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Speaker 7: nothing was not an option. We could not, will not

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Speaker 7: and never will stand idly by while he'd seeps from

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Speaker 7: the UK's remaining bus furnaces without any planning, any due process,

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Speaker 7: or any respect for the consequences.

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Speaker 3: Reynolds now faces the challenge of keeping the steel plant open.

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Speaker 3: The business loses seven hundred thousand pounds a day and

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Speaker 3: needs raw materials urgently. The saga also raises questions about

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Speaker 3: the viability of Chinese infrastructure investment in the UK, with

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Speaker 3: the government saying there is now a high trust bar

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Speaker 3: going forward.

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Speaker 2: And finally, in sports news, will Ree McElroy has completed

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Speaker 2: a career Grand Slam in golf with his win at

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Speaker 2: the US Masters Tournament. He becomes only the sixth man

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Speaker 2: to win all four major golf tournaments. It came down

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Speaker 2: to a sudden death playoff between the Northern Irishmen and

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Speaker 2: Justin Rose after McIlroy dragged his paw pot wide. Afterwards,

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Speaker 2: he reflected on what the victory meant to him and

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Speaker 2: to his family.

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Speaker 1: I want to say hello to my mom and dad.

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Speaker 1: They're back home in Northern Ireland.

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Speaker 7: And I can't wait to see them next week.

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Speaker 1: I just count wit to celebrate this with them.

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Speaker 2: Rory mcaroy there, speaking after winning the first Master's playoffs

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Speaker 2: since twenty seventeen. His win follows fourteen years of attempting

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Speaker 2: to capture the title at Augusta.

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Speaker 3: And those are your top stories on the markets today.

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Speaker 3: The Mscish Pacific Index one point seven percent higher, the

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Speaker 3: NICKA in Tokyo by almost two percent, and the Hang

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Speaker 3: Saying is two point four percent high. The Bloomberg Dollar

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Speaker 3: Spot Index is a tenth of one percent weakers. We've

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Speaker 3: got the Japanese end three tenths stronger at one forty

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Speaker 3: three eleven against the dollar, and the euro and the

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Speaker 3: pound are both slightly stronger against the green back. This morning.

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Speaker 3: The tenure treasury yield down two basis points to four

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Speaker 3: point four to seven percent. Goal gold hitting a record

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Speaker 3: high again today, slightly off the highs, but still three

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Speaker 3: two hundred and twenty dollars a troy outs as we're

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Speaker 3: looking at Wall Street futures and eurostocks fifty futures, both higher,

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Speaker 3: eurostock fifty futures up by two and a half percent.

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Speaker 2: Well in the moment, we'll bring you up to speed

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Speaker 2: on the market reaction to Present Trump's latest tariff moves

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Speaker 2: over the weekend. Plus we'll dig into the UK government's

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Speaker 2: take over of British Seal that also happened. Very busy weekend.

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Speaker 2: But something else caught our rye this morning. This is

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Speaker 2: a bit lighter. Maybe the craze for cavia. Apparently cavia

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Speaker 2: as a luxury item I worth shelling out for has

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Speaker 2: remained pretty resilient over about a century Russian caviat is

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Speaker 2: under Western sanctions, but today most caviar imported into the

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Speaker 2: US is actually farmed in China. It's always been kind

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Speaker 2: of a little bit outrageous, but actually the price of

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Speaker 2: cavia has been coming.

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Speaker 3: Down, yeah, dramatically so because of the increased production out

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Speaker 3: of China as well. Our colleague Madison Divershire has been

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Speaker 3: writing about how it's become sort of a staple now

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Speaker 3: almost of menus in Manhattan certainly US now being asked

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Speaker 3: about what did Chinese tariffs after production essentially moved to

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Speaker 3: China mean for this item on the menu that gives

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Speaker 3: a sense of luxury but has been now almost used everywhere.

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Speaker 3: I mean, it's quite funny to get some of the

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Speaker 3: commentary from chefs at this piece as well. One of

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Speaker 3: them describes it as at the end of the day,

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Speaker 3: it's salt. If you everyone see an idea of the

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Speaker 3: downgrading of caviar in people's minds, just salt.

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Speaker 2: Now, yeah, absolutely, Well, I suppose the big question is

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Speaker 2: whether or not maybe some of that cave I will

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Speaker 2: end up in the EU will be diverted anyway, we

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Speaker 2: shall see. It's one of those kind of big tariff questions,

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Speaker 2: isn't it. Well, let's get into that and the impact

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Speaker 2: on markets next.

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Speaker 3: The dollar declining at the start of this week as

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Speaker 3: investors look past the weekend reprieve on tariffs on popular

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Speaker 3: consumer electronics and prepare for what could be another wild

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Speaker 3: week in markets. Our Markets Live executive editor is trapped

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Speaker 3: in and ready for mark code more. Good morning, good

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Speaker 3: to talk to you. Let's talk about the tariff tech

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Speaker 3: pause first, though, Trump promising more levies on this sector.

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Speaker 3: How significant is this prefer markets.

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Speaker 1: I mean, obviously tarifs are the biggest story, and they're

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Speaker 1: going to remain the biggest story. They're not going away.

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Speaker 1: I think you got to every kind of question marks them.

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Speaker 1: We need to look atw different timespans, so on the

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Speaker 1: longer term time span, taras are going to be imposed

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Speaker 1: by the US to a level not seen probably in

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Speaker 1: about one hundred years, Whether some get removed, some get

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Speaker 1: negotiated away, that they will be imposed because he and

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Speaker 1: most of the Circle's administration deeply believe in them. Trumpet

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Speaker 1: particular has long deeply believed in tarifs and always been

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Speaker 1: very clear about this that he thinks this is what's

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Speaker 1: needed to kind of restructure US economy. So they're going

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Speaker 1: to remain in place. What hasn't worked out, is which

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Speaker 1: ones exactly, and that kind of ebb and flower trading

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Speaker 1: in the short term. Look, I know that Trump has

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Speaker 1: kind of gone, hey, we're going to impose some conductor

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Speaker 1: tariffs again, and that's kind of bad news, and simple

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Speaker 1: are wondering, hey, why are stocks higher? Well, the fact

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Speaker 1: is the exemption in the short term, even though it's

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Speaker 1: a temporary of you know, the electronics goods from China,

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Speaker 1: that's such a massive amount of the China trade that

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Speaker 1: you've suddenly kind of taken like a quarter or more

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Speaker 1: of the risk off of that kind of China US

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Speaker 1: trade where the most important part. So I think that

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Speaker 1: is a bigger relief in the short term, even though

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Speaker 1: people know more taraffs are coming, and they also are

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Speaker 1: worried that there's going to probably be more positive headlines

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Speaker 1: than the short term. We have the best at meeting

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Speaker 1: in Tokyo later this week. People expect there'll be some

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Speaker 1: kind of deal with Japan trade. There will announce some

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Speaker 1: kind of headline short term win, and that might provide

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Speaker 1: some release. So I think longer term, this story is

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Speaker 1: going to stay with us. It's going to stay extremely negative.

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Speaker 1: It's extremely negative for US assets. On the short term,

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Speaker 1: I think we're going to get bounce around. I wouldn't

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Speaker 1: want to trade that very negative, aggressively negative and narrative

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Speaker 1: in the very short term.

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Speaker 2: Okay, we're talking about negative the dollar dropping to a

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Speaker 2: new twenty twenty five low. Where next as really the

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Speaker 2: currency universe has also seen this just massive reset.

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Speaker 1: Yeah, unfortunately, it's going to be a similar type answer.

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Speaker 1: And that's because I think we're all traded in the

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Speaker 1: same story at the tarffs. But look, the world is

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Speaker 1: overexposed to the US dollar still. We've talked to a

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Speaker 1: lot about this in this program over the last kind

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Speaker 1: of three or four months, and ultimately, the US policies

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Speaker 1: are very damaging to holding US assets. For the last

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Speaker 1: fifteen or so years, we traded Tina, there is no

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Speaker 1: alternative to US megacap tech stocks, and so you know

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Speaker 1: of the marginal dollar generated around the world ninety five

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Speaker 1: percent which is pouring into kind of US equities, And

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Speaker 1: now suddenly people don't want to have exposed US assets

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Speaker 1: because they don't know how the rules are going to change,

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Speaker 1: and US businesses have an increased cost of business. Again,

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Speaker 1: they don't know exactly which cost of business is going

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Speaker 1: to increase and how much, but they know it's going

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Speaker 1: to get much more expensive to do business. So we're

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Speaker 1: eroding the advantage structurally, evrod in the advantage that US

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Speaker 1: companies have held, and it's a structural advantage that was

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Speaker 1: so deeply embedded that people thought it would never be removed.

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Speaker 1: That's the narrative we traded the last fifteen years that

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Speaker 1: there was no point playing m there's no point playing

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Speaker 1: a China recovery, Europe was never going to kind of

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Speaker 1: grow again. All those things have all been shifted. Now

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Speaker 1: it's suddenly no, wait a sec. We got way too

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Speaker 1: carried away in the US story, so we have to

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Speaker 1: get out of the US story. And suddenly people are

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Speaker 1: getting more excited about the other options again on a

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Speaker 1: structural basis, and that means that over the next couple

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Speaker 1: of years, the dollar will continue to decline, but very

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Speaker 1: short term, I'm pretty wary about how much it's fallen.

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Speaker 1: In the short term. You know, whether it's higher or

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Speaker 1: lower in a week, I have no idea. But over

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Speaker 1: the next couple of years, it's definitely weakening.

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Speaker 3: Okay, this isn't a week as well. We're looking ahead

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Speaker 3: to some Central Bank decisions. But I do wonder Mark,

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Speaker 3: before we let you go, perhaps are you more excited

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Speaker 3: by what we saw from Rory McElroy over the weekend?

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Speaker 1: Absolutely, the masters is the big news today. Markets are

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Speaker 1: last quiet compared to the last week or so, I

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Speaker 1: might actually, Funnily enough, I woke this morning and my

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Speaker 1: trader What's up charts had all blown up and I

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Speaker 1: welcome about five am Hong Kong time, and I thought,

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Speaker 1: oh my god, something's nuclear has happened in FX markets.

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Speaker 1: It must have gone crazy. And I clicked through every

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Speaker 1: chart and every single one was just talking about the golf.

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Speaker 2: Oh, it was an amazing moment, wasn't it. That walk,

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Speaker 2: you know, back to getting the cup was amazing? Good self, Mark,

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Speaker 2: thank you so much for being with us this morning.

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Speaker 2: I'm sure we'll be speaking to you much more over

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Speaker 2: the course of this week. Our Market's Live executive editor

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Speaker 2: Mark Cudmore or.

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Speaker 3: The UK government trying an emergency session of Parliament to

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Speaker 3: take control of British Steel this weekend. The company has

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Speaker 3: been effectively nationalized after talks with its Chinese owner Jinye

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Speaker 3: broke down. Our UK politok supporter of James Wilcock is

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Speaker 3: with us now for more Jesus reminded us of the

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Speaker 3: background to what got us here.

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Speaker 8: Yeah, it's a very good question, Stephen, because here is

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Speaker 8: quite special. We've been talking about this government and how

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Speaker 8: it might need to step in on a range of

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Speaker 8: industries like Thames Water. Instead it's gonnaur size rail. But

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Speaker 8: to happen over an emergency sitting a Parliament hasn't been

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Speaker 8: recorded on the Saturday since nineteen eighty two, the Falklands War.

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Speaker 8: And then to now be in possession of the last

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Speaker 8: British steel company in the country, it's incredible And so

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Speaker 8: you know how we got here though? Is Chinese fum

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Speaker 8: Jinga acquired British steel back in March ninth, twenty twenty,

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Speaker 8: and being that specific because obviously that is pre COVID

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Speaker 8: by a matter of days, it pledged to invest one

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Speaker 8: point two billion into the company to make it new

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Speaker 8: and green. And a lot has changed since then, the pandemic, inflation, tariffs,

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Speaker 8: and so last month it announced a consultation on shutting

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Speaker 8: the steel works and it being cheaper to just import

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Speaker 8: the steel from China. That is obviously anathema to a

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Speaker 8: UK government that has made its industrial strategy all about

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Speaker 8: keeping steel alive. The UK government offered to pay for

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Speaker 8: the raw materials. We gather they were crisis talks. We

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Speaker 8: gathered that it was an offers to finish off the

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Speaker 8: one point two billion investment with a further half a

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Speaker 8: billion from the government. However, talks broke down, and the

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Speaker 8: most striking thing to me coming in on this Monday

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Speaker 8: is the government over the weekend effectively saying that Jingye

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Speaker 8: weren't serious and.

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Speaker 1: That the was.

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Speaker 8: They were saying JINGI apparently wanted one billion pounds to

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Speaker 8: keep this steal what's going and with no guarantee that

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Speaker 8: the billion pounds would stay for investment in the UK,

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Speaker 8: which made the government concern the assets would potentially be

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Speaker 8: leaving the country, and so the government took the step

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Speaker 8: to say they were going to nationalize it.

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Speaker 2: What is Jingye's argument here, Well, if.

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Speaker 8: You look at British Ste's accounts, the argument's pretty clear, Caroline.

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Speaker 8: In twenty twenty two, British Steel made a turnover one

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Speaker 8: point seven billion, but it made a loss of four

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Speaker 8: hundred million. It made a lost twenty twenty three of

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Speaker 8: two hundred and thirty one million pounds pre tax. This

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Speaker 8: is a company British Steel that loses seven hundred thousand

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Speaker 8: pounds a day. It is just not viable to keep

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Speaker 8: it going and the business safety chance and acknowledge that

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Speaker 8: over the weekend where he said the market value of

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Speaker 8: this firm is zero. So if you're Jinie, what are

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Speaker 8: you getting out of owning British Steel?

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Speaker 3: What does this say, James about the Labor Government's approach

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Speaker 3: to its business and industrial strategy.

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Speaker 8: All around the world, Stephen, people are asking the question

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Speaker 8: of is globalization working? What does my country need to

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Speaker 8: be done here? And the UK government has been extremely

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Speaker 8: clear about its path to gross it needs private investment.

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Speaker 8: So what this story is so interesting is it's the

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Speaker 8: first time we're seeing it all tied together. This is

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Speaker 8: national security, this is the green debate. Both things need steal.

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Speaker 8: This is also a world which the UK needs to

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Speaker 8: be able to function, with some of its sectors being

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Speaker 8: far less productive and competitive, especially the industrial manufacturing ones

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Speaker 8: than some of its global rivals. If it had lost

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Speaker 8: British Steel, the UK would have been the only G

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Speaker 8: seven country without a capacity to produce version steel. So

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Speaker 8: the stakes are quite clear. What we can now say

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Speaker 8: is this is a UK government willing to put the

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Speaker 8: state funding on the line to back these industries, and

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Speaker 8: that's through it sees for some of these kind of crises.

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Speaker 8: The question we don't yet know, though, is what the

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Speaker 8: physical trade off will be. We know this is a

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Speaker 8: company that loses two hundred and thirty one million pounds

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Speaker 8: in a year. Where is that money going to come from?

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 3: stories making news from London to Wall Streets and beyond.

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Speaker 3: You can also listen live each morning on London Dab Radio,

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Speaker 2: I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all

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Speaker 3: on Bloomberg Daybreak Europe.