WEBVTT - Iran Assassination Plot Intel, Trump Talks Tariffs & Starmer's First King's Speech

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the.

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<v Speaker 3>Bloomberg Day Make You podcast, available every morning on Apple,

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<v Speaker 3>Spotify or wherever you listen. It's Wednesday, the seventeenth of

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<v Speaker 3>July in London. I'm Caroline Hepkare.

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<v Speaker 4>And I'm Stephen Carroll. Coming up today. The US Secret

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<v Speaker 4>Service titled Donald Trump's security after uncovering intelligence of an

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<v Speaker 4>Iranian plot to kill him unrelated to the weekend's assassination attempt.

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<v Speaker 3>And trump'lomics explained. The former president tells Bloomberg Business Week

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<v Speaker 3>about his tariff and tax.

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<v Speaker 4>Plans, plus Starmer pledges to take the breaks off Britain.

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<v Speaker 4>Labour's government agenda will be laid out in the King speech.

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<v Speaker 3>Let's start with a roundup of our top stories.

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<v Speaker 4>Bloomberg understands that security around former US President Donald Trump

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<v Speaker 4>was increased by the Secret Service after picking up intelligence

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<v Speaker 4>in recent weeks of an Iranian plot to assassinate him.

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<v Speaker 4>As Chris Pitt reports, the threat was separate from the

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<v Speaker 4>attempt on his life last weekend.

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<v Speaker 5>Officials say there is no indication that there's any link

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<v Speaker 5>to Thomas Matthew Crooks, who's accused of shooting Trump at

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<v Speaker 5>a rally on Saturday. The threat instead appears to be

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<v Speaker 5>linked to his previous administration, stemming from the US killing

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<v Speaker 5>of Kassam Sulimani, the head of Iran's Revolutionary Guard, in

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<v Speaker 5>twenty twenty. Sources say the White House contacted the Secret

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<v Speaker 5>Service about the threat, which then conveyed information about the

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<v Speaker 5>Iranian effort to Trump's campaign. Iran said in a social

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<v Speaker 5>media post on x that the report of its involvement

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<v Speaker 5>in a plot against Trump are baseless. In London, Chris

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<v Speaker 5>Pitt Bloomberg Radio Now.

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<v Speaker 3>Prior to the assassination attempt and shortly before his debate

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<v Speaker 3>with President Biden, Donald Trump spoke to Bloomberg BusinessWeek about

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<v Speaker 3>his economic plans for a second term in office. The

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<v Speaker 3>Republican presidential nominee waived off Wall Street concerns that he

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<v Speaker 3>would usher in heart in inflation if he wins, and

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<v Speaker 3>said that he would allowed your own pal to serve

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<v Speaker 3>out his term as the head of the Federal Reserve. Reported.

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<v Speaker 3>Nancy Cook was one of the Bloomberg journalists who conducted

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<v Speaker 3>the ninety minute print only interview, and said that she

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<v Speaker 3>and her colleagues asked Trump if he wanted to remove

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<v Speaker 3>Powell from his position.

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<v Speaker 2>He said, there's a lot of false information out there.

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<v Speaker 2>These were his words. And then we asked him if

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<v Speaker 2>he would allow j. Powell to serve out the term

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<v Speaker 2>that Biden appointed him to, which is through twenty twenty eight,

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<v Speaker 2>and he said he would allow him to serve. He

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<v Speaker 2>did add the caveat like, as long as I thought

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<v Speaker 2>he was doing things right. He said he did not

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<v Speaker 2>think that they should cut interest rates before the election,

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<v Speaker 2>sort of again implying that if they did, that would

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<v Speaker 2>be like a political move to sort of help Biden.

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<v Speaker 2>And also he sort of resisted several questions that we

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<v Speaker 2>asked him about sort of nudging the FED or what

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<v Speaker 2>he would do.

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<v Speaker 3>Nancy Cook says that Trump also told her he wants

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<v Speaker 3>to bring the corporate tax rate to as low as

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<v Speaker 3>fifteen percent, and that he'd even considered Jamie Diamond to

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<v Speaker 3>head the US Treasury.

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<v Speaker 1>Now.

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<v Speaker 3>The full Bloomberg BusinessWeek interview from Bradstone and Nancy Cook

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<v Speaker 3>is available now on the terminal well for subscribers on

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<v Speaker 3>Bloomberg dot com.

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<v Speaker 4>The comments from Donald Trump about not wanting rate cuts

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<v Speaker 4>until after the election come as Wall Street economists have

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<v Speaker 4>weighed in with the opposite view. Prominent voices including Goldman

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<v Speaker 4>Sachs GYP for economist Ian Hatziis, Queen's College Cambridge president

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<v Speaker 4>Muhammad al Aarian, and Relaisance Macro Research as Neil Dutta

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<v Speaker 4>are all warning that the FED is waiting too long

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<v Speaker 4>to cut, but policymakers, including Governor Adrianna Kugler, appear more cautious.

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<v Speaker 6>If economic conditions continue to evolve in this favorable manner,

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<v Speaker 6>with more rapid disinflation as has been evidence in the

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<v Speaker 6>inflation data from the past three months, and if employment

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<v Speaker 6>continues to soften but remains resilient as has been seen

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<v Speaker 6>in the last few jobs reports, I anticipate it will

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<v Speaker 6>be appropriate to begin easy monetary policy later this year.

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<v Speaker 4>Kogler is a voting member of the FOMC. Her comments

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<v Speaker 4>match current market expectations, with investors betting on at least

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<v Speaker 4>two cuts before the end of twenty twenty four, starting

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<v Speaker 4>in September.

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<v Speaker 3>Now, the United States has told allies that it is

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<v Speaker 3>considering using the most severe trade restrictions against companies including

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<v Speaker 3>Tokyo Electron and ASML, if they continue to give China

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<v Speaker 3>access to advanced semiconducted technology. Bloomberg has learned that the

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<v Speaker 3>Biden administration is examining the use of the Foreign Direct

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<v Speaker 3>Product Rule, which would increase controls on items that use

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<v Speaker 3>even the tiniest amount of American technology. It comes as

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<v Speaker 3>ASML has reported just this morning on second quarter bookings,

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<v Speaker 3>they came in at five point five seven billion euros.

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<v Speaker 3>That is a beat on the estimate of four point

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<v Speaker 3>four one billion. The Dutch chip equipment maker also announced

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<v Speaker 3>an interim dividend of a Euro fifty two per share,

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<v Speaker 3>and the company says that it still expects an industry

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<v Speaker 3>recovery to continue into the second half of this year.

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<v Speaker 4>HSBC is appointed George L. Hedrie as its new CEO.

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<v Speaker 4>He's been with the bank for nearly two decades and

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<v Speaker 4>is currently Chief Financial Officer. Al Hendri will take over

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<v Speaker 4>in the role from the second of September. Current CEO

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<v Speaker 4>nol Quinn announced his retirement from the top job in April.

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<v Speaker 3>The UK's new Prime Minister, Kis Starmer says that it's

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<v Speaker 3>time to take the breaks off Britain. It comes as

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<v Speaker 3>he prepares to lay out his government's agenda in the

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<v Speaker 3>King's Speech later today. Bluebooks tiva Adebayo has the details.

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<v Speaker 7>It's a century's old tradition. King Charles the Third will

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<v Speaker 7>outline a list of bills the new Labour government plans

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<v Speaker 7>to deliver. Kiss Starmer says the laws will lay the

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<v Speaker 7>foundations for the reform he thinks the country needs and

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<v Speaker 7>make people better off. The speech includes manifesto pledgers like

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<v Speaker 7>the creation of a state owned energy company and measures

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<v Speaker 7>on workers' rights, immigration, and the nationalization of the railways.

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<v Speaker 7>Sources say of the previous Conservative administration. Will also feature

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<v Speaker 7>such as a progressive smoking ban and boosting renters' rights

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<v Speaker 7>in London, do You Added by Bloomberg.

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<v Speaker 4>Radio, Nigel Musk says the headquarters for X and SpaceX

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<v Speaker 4>will both relocate to Texas. More from Bloomberg's Charlie Pallace.

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<v Speaker 8>The Billionaire Site's frustration over laws in California, where both

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<v Speaker 8>companies are currently based. Musk made the announcement on his

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<v Speaker 8>ex social media site. He cited a new law in

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<v Speaker 8>California which became the first state to ban school districts

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<v Speaker 8>from requiring teachers to notify parents about changes to a

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<v Speaker 8>student sexual orientation and gender identity. SpaceX's headquarters are currently

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<v Speaker 8>located in Hawthorne, California. But the company has been building

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<v Speaker 8>out a large facility in South Texas dubbed Starbase over

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<v Speaker 8>the last few years.

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<v Speaker 1>In New York, Charlie Pellett Bloomberg Radio, we in a moment,

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<v Speaker 1>we'll bring you more on the threate to Donald Trump,

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<v Speaker 1>pluses into the Bloomberg Business Week and look ahead towards

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<v Speaker 1>to expect from the King's speech here in the UK

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<v Speaker 1>as well.

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<v Speaker 4>But first, twenty four billion dollars, that's how much has

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<v Speaker 4>been wiped off the fortunes of the ultra rich whose

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<v Speaker 4>wealth comes from luxury products.

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<v Speaker 1>Just this year.

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<v Speaker 4>Our colleague Tarpatal in Paris has been crunching the numbers

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<v Speaker 4>on this. Of course, we've seen demand for luxury goods

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<v Speaker 4>weaken in some places. That's been a feature of some

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<v Speaker 4>of the earning supports we've already had out from this sector.

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<v Speaker 4>But some of the biggest names, the likes of belna Alnau,

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<v Speaker 4>who built LVMH. He was knocked off the top spot

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<v Speaker 4>of the Bloomberg Billionaire's Index. The heiress of Lariel Francois

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<v Speaker 4>betten Cormeyer's also lost her crown earlier this month, briefly

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<v Speaker 4>as the world's wealthiest woman and the Caring founder France.

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<v Speaker 4>Poipino has also seen his fortune have over the last

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<v Speaker 4>three years to twenty eight billion dollars.

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<v Speaker 3>It's a lovely bit of reporting, but I would just add,

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<v Speaker 3>hang on, they had a great run in the pandemic,

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<v Speaker 3>right you saw the price tag increases on luxury items

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<v Speaker 3>were immense, sometimes in the kind of double digits. The

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<v Speaker 3>issue now does seem to be out of those initial

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<v Speaker 3>kind of earnings reports China, the weakness in China, the

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<v Speaker 3>hesitancy of consumers there. So yeah, they had a good

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<v Speaker 3>run in the pandemics, what I'd.

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<v Speaker 4>Say true, and there is still growth in some parts

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<v Speaker 4>of the world as well. But there's another factor of

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<v Speaker 4>this as well, and that's the election in France which

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<v Speaker 4>hit equities there too, and those three French companies in

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<v Speaker 4>particular being hit as part of that as well. So

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<v Speaker 4>more details on how the ultra rich and the luxury

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<v Speaker 4>sector have been affected by that in that report by

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<v Speaker 4>Tarapatalio finders on Bloomberg dot Command on the terminal.

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<v Speaker 3>Okay, let's get more now on our top story, the

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<v Speaker 3>intelligence suggesting an Iranian threat against Donald Trump, as he's

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<v Speaker 3>been speaking to Bloomberg about his plans for the US economy.

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<v Speaker 3>Bloomberg's senior editor Bill Ferries joins US Now for more.

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<v Speaker 3>Good morning, Bill. What do we know exactly about this

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<v Speaker 3>intelligence about an Iranian plot against Trump?

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<v Speaker 9>Right? Thanks for having me. Yes, we're still trying to

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<v Speaker 9>get some of the details on this, but it seems

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<v Speaker 9>like in the week's proceeding this last weekend's attempt on

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<v Speaker 9>Donald Trump's life, that the US intelligence agencies in the

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<v Speaker 9>White House learned of an Iranian plot against the former president.

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<v Speaker 9>It was not linked to the shooter involved in this

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<v Speaker 9>last weeknd's pot, but apparently the Secret Service had already

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<v Speaker 9>boosted some of its measures around Donald Trump to help

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<v Speaker 9>prevent that kind of an attack. And it's something we've

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<v Speaker 9>seen a threat against a number of former Trump administration officials.

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<v Speaker 9>A lot of that tied to the administration's killing of

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<v Speaker 9>the top Iranian general, case of Solimani in early twenty twenty.

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<v Speaker 9>We know that officials like former Secretary of State Mike Pompeo,

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<v Speaker 9>former National Security Advisor John Bolton, those men all have

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<v Speaker 9>added security, which is unusual for a former official because

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<v Speaker 9>of those threats. But this is the first time we've

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<v Speaker 9>learned about a direct threat against Donald Trump himself.

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<v Speaker 4>Okay, and of course this unrelated to happened over the weekend,

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<v Speaker 4>and actually before that assassination attempt, Bloomberg has been speaking

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<v Speaker 4>to Donald Trump about his plans, particularly for the US economy.

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<v Speaker 4>But what did we learn about his plans on economic policy?

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<v Speaker 9>Well, lots of interesting information coming out of that interview.

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<v Speaker 9>One was not a big surprise. He considered Trump was

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<v Speaker 9>long considered his twenty seventeen Tax Cuts and Jobs Act

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<v Speaker 9>that lowered corporate it and some individual taxes to be

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<v Speaker 9>like one of the hallmarks of his administration that is

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<v Speaker 9>set to expire at the end of twenty twenty five.

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<v Speaker 9>He says he would expand that he would extend it.

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<v Speaker 9>He'd also like to see corporate tax rates come down

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<v Speaker 9>at least a percentage point or two. But some of

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<v Speaker 9>his most interesting comments may have been on the Federal Reserve.

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<v Speaker 9>As you guys know, the markets have been pricing in

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<v Speaker 9>a couple of cuts this year based on the latest information.

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<v Speaker 9>Donald Trump warned the Fed. He said the Fed should

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<v Speaker 9>not be making any cuts before the election. He would,

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<v Speaker 9>you know, I think the interpretation is that he would

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<v Speaker 9>see that as a political benefit to current president Joe Biden,

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<v Speaker 9>but he also said that he wouldn't plan to try

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<v Speaker 9>to oust fed share J. Powell before the end of

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<v Speaker 9>his term unless he did something unusual. But you know,

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<v Speaker 9>Trump appointed Powell, he soured on him eventually, but he

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<v Speaker 9>said he would keep him in place at least for

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<v Speaker 9>the time being.

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<v Speaker 3>Okay, Briefly, he also did discuss foreign policy in conversation

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<v Speaker 3>with Bloomberg. His views on tariffs, China, and Taiwan.

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<v Speaker 9>He's still a big fan of tariffs. He's talked about

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<v Speaker 9>raising tariffs on all imported goods ten percent or more,

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<v Speaker 9>raising tariffs even more on China and on Taiwan. He

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<v Speaker 9>came out and he said Taiwan had stolen the chip

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<v Speaker 9>industry from the US. He didn't commit to defending the

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<v Speaker 9>island if it's attacked, if it's attacked by China, and

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<v Speaker 9>that would be a very explicit change in US foreign policy,

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<v Speaker 9>particularly from the Biden administration. So I think policy makers

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<v Speaker 9>in Asia will have a lot to think about if

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<v Speaker 9>Trump goes ahead and continues his lead and this campaign

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<v Speaker 9>and wins election in November.

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<v Speaker 4>Okay, Bill Ferries, I've seen your Editorde thanks very much

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<v Speaker 4>for joining us.

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<v Speaker 3>Now to the UK the Labor Government sets out it's agenda,

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<v Speaker 3>with some thirty five bills expected in the King's Speech

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<v Speaker 3>later today. Economic growth will be the main focus of

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<v Speaker 3>plans for legislation and workers' rights, re forming planning regulations,

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<v Speaker 3>setting up a publicly owned energy company and a board

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<v Speaker 3>of security bill. Joining us now, as Blueberg's UK correspondent

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<v Speaker 3>Lizzie Burden, to take us through all the different things

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<v Speaker 3>that we're expecting in this King's speech. Good morning, Lizzie,

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<v Speaker 3>Morning Caroline.

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<v Speaker 10>Yeah, So it sets the narrative for the Starma government.

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<v Speaker 10>This it's really a moment of theater. I look forward

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<v Speaker 10>to all the pageantry in UK politics, but it marks

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<v Speaker 10>the start of the parliamentary year. You'll have the King

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<v Speaker 10>in the House of Lords delivering the speech and policy wise,

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<v Speaker 10>as you say, the focus will be on economic growth.

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<v Speaker 10>National renewal will be the framing for these thirty five

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<v Speaker 10>bills that departments will introduce and so for example, there'll

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<v Speaker 10>be a bill to strengthen the Office for Budget Responsibility,

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<v Speaker 10>the fiscal watchdog. You remember Liz Truss as Prime Minister

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<v Speaker 10>sidelined the OBR in twenty twenty two to the dismay

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<v Speaker 10>of the market. So this bill is expected to make

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<v Speaker 10>sure that that never can happen legally again. There's also

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<v Speaker 10>going to be a launch of the National Wealth Fund

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<v Speaker 10>to drive inbound investment that's been outlined by the Chancellor

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<v Speaker 10>Rachel Reeves already and Great British Energy, this publicly owned

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<v Speaker 10>clean power company. And then there'll be sort of the

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<v Speaker 10>unfinished business from the Sunac government, the Progressive smoking Band

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<v Speaker 10>renting reforms, so as I say, sets the tone for

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<v Speaker 10>the new government.

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<v Speaker 4>But there are likely to be some mini rebellions.

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<v Speaker 10>Labor MPs laying amendments to the speech which for example,

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<v Speaker 10>calling for the two child benefit cap to be lifted.

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<v Speaker 4>They argue that it fuels child poverty.

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<v Speaker 10>The government says there isn't the fiscal room to change

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<v Speaker 10>the policy yet, and the government would say that this

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<v Speaker 10>sort of rebellion isn't going to have much impact given

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<v Speaker 10>the scale of Labour's majority.

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<v Speaker 4>Okay and Lizzie, we also get the gin inflation of

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<v Speaker 4>data this morning. Could they tempt the Bank of England

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<v Speaker 4>to an August cut?

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<v Speaker 10>Well, economists they're expecting a drop from two percent in

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<v Speaker 10>May to one point nine percent in June, so below

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<v Speaker 10>the Bank of England's two percent target and this print,

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<v Speaker 10>you're right, is going to be really closely monitored by

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<v Speaker 10>the Bank of England and August rate cut is already

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<v Speaker 10>on a knife edge in terms of traders bets right now,

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<v Speaker 10>so dubvish data would give the bank cover for an

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<v Speaker 10>August cut, which would be a boon, of course, a

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<v Speaker 10>care starmer. Interestingly, yesterday you saw the two year yield

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<v Speaker 10>falling below four percent for guilts for the first time

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<v Speaker 10>this year on the expectation that cuts are coming soon.

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<v Speaker 10>But you'll remember you did have this unexpected strength in

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<v Speaker 10>the April and May readings, even if inflation is now

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<v Speaker 10>back at target. And if you look at the recent

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<v Speaker 10>Bank of England speak from Chief economist Hugh pill he's

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<v Speaker 10>hinted that he's going to be looking past looking through

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<v Speaker 10>individual data points at the underlying longer term trends. So

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<v Speaker 10>that suggests that August really is far from a done

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<v Speaker 10>deal and you still could see some volatility in the

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<v Speaker 10>market office reading.

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<v Speaker 4>This is Bloomberg Daybreak Europe, your morning brief on the

0:15:28.960 --> 0:15:32.040
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0:15:32.280 --> 0:15:35.480
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0:15:54.600 --> 0:15:57.200
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