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

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Speaker 2: This is the.

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Speaker 3: Bloomberg Day by Q podcast, available every morning on Apple,

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Speaker 3: Spotify or wherever you listen. It's Thursday, the twenty fourth

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Speaker 3: of April in London. I'm Caroline Hepka and.

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Speaker 4: I'm Stephen Carroll.

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Speaker 1: Coming up today, Hedge fund titan Ken Griffin says Donald

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Speaker 1: Trump's trade war has devolved into a nonsensical place as

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Speaker 1: the President raises the prospect of lower China tariffs in

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Speaker 1: the coming weeks.

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Speaker 3: The UK's Chancellor Rachel Reeves says there's no rush to

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Speaker 3: strike a deal with the US to lower levies on Britain.

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Speaker 4: Plus a major bump in the road.

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Speaker 1: But in our Jim Ratcliffe's faray into the car business

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Speaker 1: faces its latest challenge to profitability in the form of

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Speaker 1: US auto tariffs.

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Speaker 3: Let's start with a roundup of our top stories.

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Speaker 1: Bloomberg understands that President Trump's decision to ease off criticism

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Speaker 1: of Federal Reserve charg Jerown Powell and China came after

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Speaker 1: a meet with executives from Walmart Home Depot and Target,

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Speaker 1: who warns that store shelves could be empty within weeks. Meanwhile,

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Speaker 1: Citadel founder Ken Griffin said the trade war had disrupted

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Speaker 1: business leader's ability to focus on long term growth. Speaking

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Speaker 1: at the Semaphore World Economy Summers, the Republican megadoner warned

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Speaker 1: that things are moving to haphazardly all of us.

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Speaker 5: We're really looking forward to four years of having a

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Speaker 5: chance to really grow our businesses, and unfortunately the trade war,

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Speaker 5: which has devolved into a nonsensical place, means that we're

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Speaker 5: spending time now thinking about supply chains, thinking about strategically

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Speaker 5: how we're going to source goods around the world. And

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Speaker 5: I'll tell you what's not going to happen this. People

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Speaker 5: are not going to race to build manufactured in America.

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Speaker 1: Griffith's comments came as market participants tell Bloomberg that it's

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Speaker 1: becoming increasingly difficult to predict the direction of stocks, bonds,

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Speaker 1: or the dollar. As Jay Woods, chief global strategistic Freedom

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Speaker 1: Cap Markets put it, every day is just uncertainty, uncertainty, uncertainty.

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Speaker 1: We expect one thing to happen, and then something entirely

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Speaker 1: different does.

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Speaker 3: President Trump has raised the prospect of a new tariff

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Speaker 3: right for China coming in the next two to three weeks,

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Speaker 3: but that it depends on Beijing. The Wall Street Journal

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Speaker 3: reported on Wednesday that administration officials are weighing plans to

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Speaker 3: cut tariffs on Chinese imports now. Under the proposal, they say,

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Speaker 3: tariffs could be reduced to a range of fifty to

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Speaker 3: sixty five percent, or, through a tiered system, thirty five

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Speaker 3: percent on items deemed non critical to national security, but

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Speaker 3: then up to one hundred percent on sensitive goods that

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Speaker 3: would be gradually phased in over five years. The White

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Speaker 3: House has yet to formally begin tariff talks, though with Beijing.

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Speaker 3: President Trump told reporters that everything's active.

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Speaker 6: We're going to have a great deals. And by the way,

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Speaker 6: if we don't have a deal with the company or

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Speaker 6: a country, we're going to set the tariff. Just set

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Speaker 6: the terror for something that we think that will happen.

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Speaker 6: I say over the next couple of weeks. When you say,

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Speaker 6: I think so, over the next two to three weeks,

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Speaker 6: we'll be setting the number. And we're going to pick

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Speaker 6: could be for China too.

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Speaker 3: President Trump is known for shifting positions, and a White

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Speaker 3: House official noted that the reported proposal may have been

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Speaker 3: floated as a trial balloon to draw China back to

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Speaker 3: the negotiating table, but any changes would require progress in negotiations.

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Speaker 3: Treasury Sectuary Scott Bessent echoed that caution on Wednesdays, saying

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Speaker 3: that the US is not likely to unilaterally lower tariffs

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Speaker 3: and then a comprehensive trade deal could take two to

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Speaker 3: three years.

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Speaker 1: Next to Britain's Chancellor Rachel Reeves, who says the UK

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Speaker 1: isn't in a rush to do a trade deal with America,

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Speaker 1: Bloomberg was told the uncertainty over the how Trump's tariffs

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Speaker 1: might play out means London feels less time pressure to

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Speaker 1: strike a deal. Speaking to reporters, Reeves says safety standards

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Speaker 1: won't be compromised.

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Speaker 4: We're confident that we can secure an agreement with the

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Speaker 4: United States. We're not going to rush a deal.

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Speaker 7: We want to get the right deal in our country's

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Speaker 7: national interest.

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Speaker 1: UK's Chancellor's tight fiscal plans are again in question as

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Speaker 1: the trade war hits economic growth around the world. She's

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Speaker 1: due to meet Treasury Secretary Scott Bassen tomorrow to discuss

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Speaker 1: tariff negotiations.

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Speaker 3: To Breaking Earnings News This Hour, BMP Pariber has reported

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Speaker 3: record income from equities trading as the French lender rode

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Speaker 3: the global market volatility that's been seen. In the first

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Speaker 3: quarter of this year, the French lender reported a forty

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Speaker 3: two percent surge in equities trading revenue to one point

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Speaker 3: one nine billion euros, beating even the most optimistic Alyss estimate.

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Speaker 3: It was also the highest in day to compile by

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Speaker 3: Bloomberg and going back to two thousand and seven. However,

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Speaker 3: BNP Pariber's costs rose four percent on the previous years period,

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Speaker 3: which contributed to a deca fine in net income. According

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Speaker 3: to BNP's statement this morning.

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Speaker 1: Donald Trump is ramping up pressure on Ukraine's President Vladimir

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Speaker 1: Zelenski to accept a peace deal with Russia. Last week,

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Speaker 1: US officials presented a new proposal to end the war

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Speaker 1: that would effectively freeze the conflict largely along existing battle lines.

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Speaker 1: The US is also willing to acknowledge Russia's occupation of

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Speaker 1: Crimea and ease sanctions on Moscow. Speaking from the Oval

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Speaker 1: Office yesterday, Trump said an agreement now hinges on Ukraine's acceptance.

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Speaker 6: I will say that I think Russia is ready, and

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Speaker 6: a lot of people said Russia wanted to go for

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Speaker 6: the whole thing, and they've I think we have a

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Speaker 6: deal with Russia. We have to get a deal with Zelensky,

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Speaker 6: and I hope that Selensky I thought it might be

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Speaker 6: easier to deal with Zelensky. So far it's been harder.

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Speaker 1: President Trump speaking there hours after criticizing Zelensky on social

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Speaker 1: media for saying this week that his country wouldn't recognize

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Speaker 1: Russian's sovereignty over Crimea, accusing him of prolonging fighting. Meanwhile,

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Speaker 1: critics of the proposed deal feel the terms where fear

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Speaker 1: of the terms will favor Moscow and sacrifice European security.

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Speaker 1: Early this morning, the Ukrainian cities of Kiev and Kharkiv

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Speaker 1: faced drone and missile attacks injuring at least five people,

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Speaker 1: according to a telegram post by the City Military Administration

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Speaker 1: in Kiev.

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Speaker 3: Now to the City of London, firms are seeking bigger

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Speaker 3: office spaces for the first time since the pandemic. It's

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Speaker 3: a move that signals changing attitudes towards physical footprints for

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Speaker 3: many businesses. Bloomberg's Tiba at a Baio has more.

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Speaker 2: In the wake of the coronavirus outbreak, business leaders envisioned

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Speaker 2: a future of shrinking office real estate and homeworking dominance.

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Speaker 2: Whilst that prophecy did initially come true. Recent figures show

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Speaker 2: the tide is turning back towards in office presence for

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Speaker 2: a number of London firms across the capital. Seventy percent

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Speaker 2: of the established businesses that moved office in twenty twenty

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Speaker 2: four took additional space, totaling about four point one million

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Speaker 2: square feet of expansion. That's according to data from broker

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Speaker 2: Cushman and Wakefield. Now, industry heavy hitters including JP Morgan

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Speaker 2: and Jane Street are in talks to boost their physical

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Speaker 2: presence in the city, with a focus on central, well

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Speaker 2: connected locations in London. Te Wadabayo, Bloomberg Radio.

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Speaker 1: Those are your top stories on the markets. The equity

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Speaker 1: market rally was losing steam late yesterday, but the S

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Speaker 1: and P five hundred still finished by one point seven

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Speaker 1: percent higher. We saw the dollary band from year to

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Speaker 1: date lows rising near one percent in the past three sessions.

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Speaker 1: Trading just slightly weaker overnight inequity Asian trading Today in Asia,

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Speaker 1: we're looking at the MSCIS Specific Index three tenths lower.

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Speaker 1: The Hangsang and Hong Kong is down by one point

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Speaker 1: one percent. Treasury yields continuing to decline. The tenure yield

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Speaker 1: down another two basis points this morning to four point

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Speaker 1: three six percent. European stock flash for eurostrucks fifty at

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Speaker 1: the moment, but when the currency markets were also watching

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Speaker 1: the yen strength and four tenths of one percent against

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Speaker 1: the dollar trading just shy of one forty three, the

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Speaker 1: euros up two tenths at one thirteen thirty six.

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Speaker 3: Now in a moment, we will have all the latest

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Speaker 3: tariff news for you this morning, plus why Trump's levees

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Speaker 3: are spelling trouble for British billionaire Jim Ratcliff's car business.

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Speaker 3: But before we get to those conversations, another swis caught

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Speaker 3: our eye, joggings out and apparently moving and lifting heavy

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Speaker 3: objects is in.

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Speaker 1: As if being on social media slash existing in the

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Speaker 1: world wasn't hard enough. Apparently the things that I like

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Speaker 1: are now no longer popular and I have to I

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Speaker 1: have to take up blue things now.

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Speaker 4: I don't want to do any new things.

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Speaker 1: Caroline and fed up with this, but anyway, look at

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Speaker 1: Bloombero's red Riders and writing about how gym businesses are

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Speaker 1: adopting the US was uptake a interest or increased interest

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Speaker 1: in weightlifting, So they're actually getting rid of quite a

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Speaker 1: lot of their cardio machines. Crunch Fitness one of the

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Speaker 1: big chains in the US, so that they're actually in

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Speaker 1: most places reducing around four twenty percent of the machines

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Speaker 1: that have available for cardiopo because people aren't using them

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Speaker 1: and they're replacing them with weights.

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Speaker 3: And that is both a kind of TikTok social media trend.

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Speaker 3: It's it's also one that you've kind of seen with celebrities,

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Speaker 3: and it's partly also the health advice that's being given

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Speaker 3: sort of to older people and especially to women as

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Speaker 3: people age, is to kind of bulk up, get you know,

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Speaker 3: keep hold of your muscles. Anyway, it's a really great

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Speaker 3: piece from a red band who goes into lots of

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Speaker 3: details about why, you know, weightlifting is now the thing

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Speaker 3: in the gym.

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Speaker 4: Well, that's scat you.

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Speaker 1: The latest on the tariff story now, Donald Trump now

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Speaker 1: says China might get a lower rate within weeks, while

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Speaker 1: US officials are said to be considering reducing the levies

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Speaker 1: on the car industry as well. Our AMA News director

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Speaker 1: Rasland Matheson is with us for more this morning.

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Speaker 4: Rose, Let's start with China.

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Speaker 1: Both Trump and the Treasury secretaries got best and have

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Speaker 1: indicated there's room for negotiation. Can we say this really

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Speaker 1: is a de escalation, Well, at least the language is

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Speaker 1: a de escalation.

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Speaker 8: The question is what does it actually lead too, because

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Speaker 8: there's a lot of on the one hand, On the

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Speaker 8: other commentary coming from US officials, Donald Trump saying that

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Speaker 8: he thinks he can get a good deal with China.

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Speaker 8: They're talking with officials unnamed officials in China every single day,

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Speaker 8: and that he's confident of that. But also we're getting

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Speaker 8: these reports that he may reduce tariffs on China preemptively

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Speaker 8: even before there's a negotiation, and then other officials saying,

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Speaker 8: hang about no, who's not going to do anything like that.

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Speaker 8: I mean, the messaging overall seems to be they're open

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Speaker 8: to a conversation. They're indicating that they realize that perhaps

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Speaker 8: it's escalating to a point that the US doesn't want

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Speaker 8: it to get to. But the reality is that getting

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Speaker 8: these tariffs lowered and off is easier said than done.

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Speaker 8: And equally, he will need China to make some kind

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Speaker 8: of step towards the US. He can't just lift tariffs

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Speaker 8: on China or reduce them without something in return.

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Speaker 4: So at least the language is softening.

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Speaker 8: We're a bit of a way potentially before we get

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Speaker 8: to tangibles on it.

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Speaker 3: And yet there are quite a number of sectors within

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Speaker 3: the US, executives, individual states, various companies who want who

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Speaker 3: are putting pressure on on Donald Trump over tariffs. Does

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Speaker 3: relief on the auto sector look perhaps the most likely

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Speaker 3: to happen?

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Speaker 8: Now, Well, there's been a lot of lobbying from the

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Speaker 8: auto sector, parade of CEOs, executives, lobbies through Washington saying

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Speaker 8: this is going to be very damaging for our own

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Speaker 8: auto industry. In fact, it could lead to layoffs and

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Speaker 8: some one It's really interesting because of course Donald Trump's

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Speaker 8: going to Michigan next week, that's where he's going to

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Speaker 8: mark his one hundred days in office. That's the bedrock

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Speaker 8: of you know, the US auto industry. So certainly he

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Speaker 8: doesn't want to be heckled there by people saying that

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Speaker 8: he's risking jobs in the US. But what we do now,

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Speaker 8: of course, from our own reporting, is they are looking

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Speaker 8: at perhaps some easing, they're you know, avoiding the stacking

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Speaker 8: of tar tariffs for the auto sector, see not putting

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Speaker 8: tariffs on top of each other. Perhaps again some exemptions

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Speaker 8: if for the US Mexico Canada hit trade deal, because

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Speaker 8: of course a lot of the autoparts come through the

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Speaker 8: Americas as a whole into the US, so there might

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Speaker 8: be some selective relief that can come. There no promises

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Speaker 8: from the White House as yet, but we do know

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Speaker 8: from our own reporting that's being at least discussed.

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Speaker 1: This is we've got the parade of financial officials moving

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Speaker 1: through Washington for the IMF and World Bank Spring meetings.

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Speaker 1: At the moment of Rachel Reeves saying that she's in

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Speaker 1: no rush to do a trade deal.

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Speaker 8: What's interesting because you have a lot of countries saying

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Speaker 8: they're rushing to talk, but at the same time, the

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Speaker 8: narrative is that they would prefer to do a good

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Speaker 8: deal rather than a quick deal, and then a bad deal,

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Speaker 8: of course, becomes very very difficult to unwind. So if

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Speaker 8: you race to get something done, getting it unpicked later

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Speaker 8: on is very very difficult. And so even with countries

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Speaker 8: like Japan, India, others who are really at the frontline

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Speaker 8: of having these negotiations with US officials, you get a

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Speaker 8: message there also that they would prefer a better deal

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Speaker 8: over a quick deal, and some suggestion from the White

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Speaker 8: House even that getting a proper trade deal with the

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Speaker 8: country like China could take years, so certainly we're getting

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Speaker 8: that kind of like hurry up, but also weight messaging

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Speaker 8: coming from a bunch of countries, including the UK.

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Speaker 3: Wels thank you so much for being with us this morning,

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Speaker 3: taking us through all the latest tariff twists. Our EMEA

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Speaker 3: News director Rosly.

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Speaker 1: Matheson Well, the British spilding now Jim Rathcliffe is among

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Speaker 1: those fitting the pinch from Donald Trump's levies on the

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Speaker 1: auto sector. His Ineos automotive business, which had already been

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Speaker 1: facing difficulties from recalls and bankrupt suppliers, now looks even

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Speaker 1: further from turning a profit. Our UK Business editor Jamie

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Speaker 1: Nemo joins us now for more on this. Jamie, good morning.

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Speaker 1: In the automotive's main product is the Grenadier suv. Talk

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Speaker 1: us through what the state of the business was before

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Speaker 1: the tariffs.

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Speaker 7: Yeah, well, they were really in startup mode and they

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Speaker 7: still are. I mean it's it's like a nine year

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Speaker 7: old business. So in startup world, that's you know, quite developments,

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Speaker 7: but in the car business, that's a long way from

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Speaker 7: really producing large sums, large volumes of cars. So yes,

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Speaker 7: they just started selling cars in twenty twenty three, really

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Speaker 7: trying to ramp up now. So this is a real

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Speaker 7: blow to their plans to sort of boost sales in

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Speaker 7: the US, which is its largest market.

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Speaker 3: Ah okay, so what's changed since the auto tariffs were imposed?

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Speaker 7: So they've raised the prices on a couple of their models.

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Speaker 7: They've got to pick Up that they've had to raise

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Speaker 7: by ten percent, and the standard Grenadier is five percent higher.

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Speaker 7: They hope that, you know, customers will keep coming to

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Speaker 7: buy the car. The problem for the pickup version is

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Speaker 7: that it already attracts the twenty five percent chicken TACs,

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Speaker 7: which has been in place for decades. So you've now

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Speaker 7: got this double tariff hit. So they're really going to

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Speaker 7: have to take that blow, and there's there's really not

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Speaker 7: that much they can do about it.

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Speaker 1: What's the kind of comparison with ANYAS versus other car makers,

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Speaker 1: because of course they're all affected by the tariffs, and

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Speaker 1: AS is particularly feeling the pain.

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Speaker 4: Yeah.

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Speaker 7: Well, if you think about VW, for instance, it's you know,

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Speaker 7: giant company. We talk about the strain it's under, but

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Speaker 7: in reality it's still churning out huge profits and then

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Speaker 7: take Ineos. You're a startup, You're really not. You're losing

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Speaker 7: tons of money at the moment, and it's just going

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Speaker 7: to get worse. I mean, they were hoping to turn

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Speaker 7: a profit in the next few years, not exactly sure

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Speaker 7: when they haven't stated that, but we know now the

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Speaker 7: CEO told us that this will delay that and it

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Speaker 7: will take a lot longer. And then you've got the dilemma.

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Speaker 7: Does he keep putting money and he's having to fund

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Speaker 7: this it's not his main business. Chemicals is the main thing,

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Speaker 7: and he's got a lot of you know, a lot

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Speaker 7: of sport now as well. Man United is the big

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Speaker 7: high profile investment, so you know he'll really have to

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Speaker 7: commit or pull the plug.

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Speaker 3: Yeah, I'm sort of going to say geomatically, he's such

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Speaker 3: a well known figure. He's quite controversial. He you know,

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Speaker 3: he does speak from time to time. So he's he's

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Speaker 3: perhaps quite well known in the UK obviously for his

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Speaker 3: wealth and the chemicals business success. What does it mean

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Speaker 3: for him then, because he's trying to repeat that success

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Speaker 3: in other sorts of businesses.

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Speaker 7: Yeah, he's really trying to prove himself in under other

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Speaker 7: industries and it's not quite paid off yet. Sport in particular,

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Speaker 7: He's come in at different times of sports, cycling, football,

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Speaker 7: Formula one and it's not quite worked out. So this

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Speaker 7: is another area where he's really trying to prove himself.

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Speaker 7: So he probably doesn't want to pull the plug. He

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Speaker 7: really wants to show that he can make this work,

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Speaker 7: makes a success of it.

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Speaker 4: So yeah, that's that's his real thing.

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Speaker 7: He wants to just you know, show that he can

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Speaker 7: he can work his magic in other sectors.

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Speaker 1: Is there any cars for optimism from the company in

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Speaker 1: this as well? How are they thinking about I suppose

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Speaker 1: that the path away from their current difficulties.

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Speaker 4: Yeah, I think so.

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Speaker 7: They hope that as they get more mature, they can

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Speaker 7: you know, strengthen their supply chain. You know, they had

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Speaker 7: a situation last year where a seat supply went bust

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Speaker 7: and they had no alternatives than to shut down the factory.

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Speaker 7: I think they hope that as as it gets older,

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Speaker 7: they can they'll have they'll have fallbacks in different scenarios,

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Speaker 7: and also as they as customed, as the brand gets

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Speaker 7: you know better better in the US in particular, that

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Speaker 7: they won't have to completely sort of throw huge sums

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Speaker 7: at marketing to sell the vehicles and it would be

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Speaker 7: a bit more self sufficient.

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

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