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

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Speaker 2: This is the Bloomberg dayba q a podcast. Gootballing is

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Speaker 2: Finder the twenty fifth of July. On Caline, hepcat in London.

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Speaker 3: And I'm Stephen Caroline Brussels. Coming up today. Donald Trump

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Speaker 3: turns to his favorite playbook of flooding the Zone to

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Speaker 3: attack the Federal Reserve Charge your Own Powell, while simultaneously

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Speaker 3: saying he has no plans to fire him.

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Speaker 2: Bloomberg learns that City pushed its global head of short

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Speaker 2: term interest rate trading to delete a social media post

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Speaker 2: critical of Israel's actions in Gaza.

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Speaker 3: Plus Gorillas, Grapes and Gulf Billions will take you inside

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Speaker 3: the rush to invest in ultra luxury travel in Africa.

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

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Speaker 3: Federal Reserve Charge your Own Powell is coming under increasing

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Speaker 3: pressure from President Trump, who is employing what our senior

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Speaker 3: national political correspondent Nancy Cook has described as flood the

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Speaker 3: Zone strategy. Trump's approach involves personally attacking Pal, questioning the

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Speaker 3: FED spending, and discussing potential replacements, while simultaneously signaling that

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Speaker 3: he has moved away from the idea of firing the

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Speaker 3: FED chair. Speaking yesterday, Trump downplayed his clash with the

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Speaker 3: Federal Reserve chair. I think he's going to do the

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Speaker 3: right thing. Everybody knows what the right thing is.

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Speaker 4: Even people that believed in the higher rates are all

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Speaker 4: on board. They all want to see the interest rates

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Speaker 4: come down.

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Speaker 5: It's very important.

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Speaker 3: Trump's visit to the Federal Reserve was the first by

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Speaker 3: a US president in nearly two decades. It comes as

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Speaker 3: Fed officials are widely expected to hold interest rates steady

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Speaker 3: for a fifth consecutive time at their meeting next week.

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Speaker 6: Now.

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Speaker 2: Sources of spoken to Bloomberg saying that ECB policymakers pushing

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Speaker 2: for another interest rate cut face an uphill battle with

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Speaker 2: inflation at two percent and the economy in europew Withstanding

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Speaker 2: trade terps, the central Bank left interest rates unchanged on Thursday,

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Speaker 2: pausing its year long easing cycle amid ongoing trade tensions

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Speaker 2: with the US. ECB President Christine Laguard said the central

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Speaker 2: Bank is in wait and see mode, citing inflation at

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Speaker 2: target and rising global uncertainty.

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Speaker 1: We are in a good place, and we are in

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Speaker 1: a good place because inflation is at two percent, but

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Speaker 1: we're not focused on data points We're looking at all

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Speaker 1: sorts of data and our target is the medium term inflation.

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Speaker 2: Following those comments from Christine Laguard, markets paired bets on

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Speaker 2: a September rate cut from the ECB. They now put

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Speaker 2: the chance of a move at about twenty five percent

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Speaker 2: versus forty percent before Leguard spoke.

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Speaker 3: Sales the luxury giant LVMH have fallen again as demands

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Speaker 3: slumps in Japan and China. Revenue after French Group's fashion

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Speaker 3: and leather goods division dropped nine percent over the second quarter,

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Speaker 3: a worse fall than analysts expected. But Jelenka Sokolova, senior

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Speaker 3: equity analyst at morning Star, says luxury demand in Asia

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Speaker 3: depends on the strength of the region's economy.

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Speaker 4: The sentiment, I think is affected by the real estate

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Speaker 4: prices that remain in the negative territory and also by

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Speaker 4: the economic growth. Once the real estate market price is stabilized,

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Speaker 4: there could be an uplift and there could be additional

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Speaker 4: spending of all those savings that have been accumulated during

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Speaker 4: COVID years.

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Speaker 3: Morning Stars Jelenka Sokolova, speaking there, LVMH has been suffering

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Speaker 3: from reduced demand, particularly in China, traditionally a driver of growth.

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Speaker 3: Shares in the firm of dropped by thirty percent in

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Speaker 3: the past year, and in April LVMH lost its status

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Speaker 3: as France's most valuable company to birkenbag maker Ermez.

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Speaker 2: Australia and the UK plan to sign a twenty billion

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Speaker 2: pound treaty in the coming hours to build a fleet

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Speaker 2: of nuclear powered submarines. The British Foreign offic says that

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Speaker 2: more than twenty one thousand people in the UK will

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Speaker 2: work on the conventionally armed nuclear powered ORCUSS submarine program.

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Speaker 2: The Times reports that the deal is part of an

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Speaker 2: effort to persuade the United States that uphold the accord

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Speaker 2: that were signed by former President Biden, which the Pentagon

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Speaker 2: says is currently under review.

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Speaker 3: The British Prime Minister Kurros Starmer says the UK is

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Speaker 3: back on the world stage after sealing a trade deal

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Speaker 3: with India. The long sought after agreement was ratified on

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Speaker 3: Thursday during Indian Prime Minister Narendra Modi's visit. It's the

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Speaker 3: biggest trade deal struck by the UK since Brexit, cutting

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Speaker 3: ninety percent of tariff lines on British exports to India.

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Speaker 3: Speaking as it was confirmed. Hero Starmer emphasized the deal's

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Speaker 3: selling points.

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Speaker 7: It is a deal that will bring huge benefits to

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Speaker 7: both of our countries, boosting wages, raising living standards and

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Speaker 7: putting more money in the pockets of working people. It

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Speaker 7: is good for business and making trade cheaper, quicker and easier.

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Speaker 3: That's the Prime Minister Keir Starmer. He added the agreement

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Speaker 3: didn't mark the limit of the UK's ambition and would

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Speaker 3: provide a baseline of cooperation to build on. A separate

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Speaker 3: bilateral investment treaty is still being negotiated between the two countries.

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Speaker 2: Bloemakers learned that Citygroup has pushed a trading desk head

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Speaker 2: to delete a social media post that was critical of

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Speaker 2: Israel and sought to draw attention to the situation in Gaza.

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Speaker 2: Bloomberg's un Pots has more.

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Speaker 5: City's global head of short term interst rate trading actually

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Speaker 5: Single posted on LinkedIn that he believed Israel's actions in

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Speaker 5: Gaza were quote horrific and unacceptable and calling them, in

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Speaker 5: his words, genocide. Before the end of the day, though

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Speaker 5: we told the bank and asked the London based staff

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Speaker 5: member to remove the comments. City says the post was

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Speaker 5: inconsistent with its code of conduct, and it's reviewing the matter.

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Speaker 5: The Trader did not respond to a requests for comments.

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Speaker 5: The move is the latest reflection of corporation's reluctance to

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Speaker 5: take stances on polarizing topics. In London, I'm you in

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Speaker 5: pots Spoonberg.

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Speaker 3: Radio, and the United States and Israel have withdrawn their

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Speaker 3: negotiating teams from Gaza ceasefire talks. The Trump administration says

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Speaker 3: ha Mass is not acting in good faith. A key

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Speaker 3: disagreement has been over Hamas's demand to bring back a

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Speaker 3: UN run aid network that Israel shut down, claiming Hamas

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Speaker 3: was taking food and medicine from it. Prime Minister Kristarmer

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Speaker 3: is among world leaders who've condemned what he called a

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Speaker 3: humanitarian catastrophe in Gaza, saying it has reached new depths.

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Speaker 3: Dozens of aid groups have warned that starvation and the territory,

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Speaker 3: particularly among children, is spreading.

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Speaker 2: Those are top stories for you this morning. Let's look

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Speaker 2: at the markets. So the global rally in stocks losing steam.

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Speaker 2: In Asia this morning MSCI Asia Pacific Index is down

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Speaker 2: almost one percent. Stop futures for the USR in the green,

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Speaker 2: but for the US stox fifty futures. They're down a

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Speaker 2: tenth of one percent. We have seen the S and

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Speaker 2: P five hundred, of course, rallying twenty eight percent since

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Speaker 2: the eighth of April, so huge surge in US stocks,

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Speaker 2: and even yesterday we saw European stocks gaining about two

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Speaker 2: tenths of one percent at the close. But there's now

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Speaker 2: more uncertainty about the Fed's rate trajectory. Traders expect fewer

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Speaker 2: than two rate reductions this year after strong jobs figures yesterday,

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Speaker 2: initial claims for unemployment benefit and the ECB kept interest

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Speaker 2: rates unchanged. The Bluebig Dollar Spot index is also stronger

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Speaker 2: two tenths of one percent. Stephen.

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Speaker 3: In a moment, we'll bring you more on Donald Trump's

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Speaker 3: pressure campaign against the Federal Reserve chair, plus how the

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Speaker 3: billionaires are pouring money into Africa's luxury travel sector. But

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Speaker 3: another story that we've been reading and sort of feeling

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Speaker 3: as well this morning. It's about the heat on the

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Speaker 3: Central Line in London, a frequent topic of conversation during

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Speaker 3: the summer, but Bloomberg's actually developed an index to track

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Speaker 3: the heat on the tube between Bank and Bond Street.

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Speaker 3: On the ten minute journey. We found that temperatures inside

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Speaker 3: the carriages are several degrees hotter than the surface, and

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Speaker 3: that weekday commuters have been faced the equivalent of non

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Speaker 3: stop heat wave conditions all summer.

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Speaker 2: I love the fact that Bloomberg has an index, but

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Speaker 2: frankly I didn't need one because I know that that's

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Speaker 2: how warm the tube is, and I don't think it's

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Speaker 2: just the Central Line either. Look, this is becoming a

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Speaker 2: major issue because of climate change and London is now

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Speaker 2: seeing these warmer temperatures for so many more days. I mean,

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Speaker 2: the warning now is that it's affecting the drive to

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Speaker 2: get work, is actually back into the office, it's affecting

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Speaker 2: people's choice of jobs and where they live. Yeah, it's

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Speaker 2: really quite grim in London. The other thing that people

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Speaker 2: forget also is that noise. Noise on the tube is

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Speaker 2: also really really loud, especially on old lines like the

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Speaker 2: Northern Line.

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Speaker 3: Yeah, like we know this obviously it's an old piece

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Speaker 3: of infrastructure, so there are problems that come along with that.

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Speaker 3: But this is also to do with the clay soil

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Speaker 3: under London too, So over time that's been absorbing the

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Speaker 3: heat from the trains, breaking an acceleration which has actually

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Speaker 3: made the tunnels hotter over time, and some of the

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Speaker 3: people that our colleagues spoke to during the story as well.

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Speaker 3: We're saying that it's affecting where people are choosing to

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Speaker 3: live if they can live near one of the very

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Speaker 3: few air conditioned lines in London as well, but also

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Speaker 3: affecting where they're willing to work, because some people just

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Speaker 3: aren't willing to take the tube every day.

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Speaker 2: No, absolutely, and Olivia Vodgard writing about this along with

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Speaker 2: other colleagues. So we'll also pin a link to that

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Speaker 2: article in our show notes if you want to read

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Speaker 2: more about the details of London's heating tube.

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Speaker 3: Well, let's go back to our top story this morning

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Speaker 3: and the pressure Donald Trump is putting on the Federal

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Speaker 3: Reserve chair to lower interest rates through multi pronged attacks.

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Speaker 3: User tour of the Central Banks building renovations in Washington

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Speaker 3: to again call for Jerome Powell to quote do the

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Speaker 3: right thing. Our market's life stratus, Mark Cranfield joins us

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Speaker 3: now for more. Mark just put this in perspectives for us,

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Speaker 3: how unusual is it to see a US president wage

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Speaker 3: a campaign like this against the Fed?

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Speaker 6: Well?

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Speaker 8: Extremely and there must be a lot of investors scratching

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Speaker 8: their heads because this morning in Asia we had yet

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Speaker 8: another record high on S and P five hundred futures,

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Speaker 8: which I think most people will probably agree is an

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Speaker 8: indication that investors are pretty happy with what's going on

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Speaker 8: in the American economy, with American companies making pretty good profits.

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Speaker 8: We've seen some really good numbers this week from Alphabet,

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Speaker 8: We've got some big ones coming up in the week ahead,

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Speaker 8: so it's a bit hit scratching. Really does America need

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Speaker 8: an interest rate cut at this stage? The markets are

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Speaker 8: certainly suggesting they don't, and yet there's been a lot

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Speaker 8: of discussion and pressure being put on your own power

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Speaker 8: all about it. And as you say, they met in

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Speaker 8: person at a building site yesterday just to emphasize the

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Speaker 8: point that America needs lower interest rates.

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Speaker 2: Yeah, And the difficulty is how to defend the institution.

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Speaker 2: I think there's a bit of a struggle going on

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Speaker 2: about how to understand that Trump saying that it's not

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Speaker 2: necessary to fire. How are markets then viewing the prospect

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Speaker 2: of the Federal Reserve chair maybe being removed.

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Speaker 8: Basically it will be taken out in terms of what

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Speaker 8: happens to American assets. There will be a discount applied

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Speaker 8: to anything related to America. Because of this uncertainty about

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Speaker 8: the direction of the Central Bank and the way in

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Speaker 8: which it's being undermined, the most obvious place for that

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Speaker 8: would be the US dollar. If this gets serious, if

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Speaker 8: there's no letter in the attacks against er own power,

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Speaker 8: then the US dollar will just have to go lower

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Speaker 8: because the investors will feel that it needs to be

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Speaker 8: cheaper than other major currencies to reflect the fact that

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Speaker 8: there is inconsiderable uncertainty, be a what's happening to the

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Speaker 8: central bank that it's no longer as independent as it

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Speaker 8: used to be. Any central bank which has a degree

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Speaker 8: of strength behind it will have a higher premium in

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Speaker 8: its currency, and that will have to be taken away

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Speaker 8: from the dollar because of the Federal Reserve. It's early stages,

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Speaker 8: but if they don't dial back from this continued approach,

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Speaker 8: then investors will do it for them. They will show

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Speaker 8: President Trump what they think about what it's doing to

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Speaker 8: the credibility of all American institutions.

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Speaker 3: Okay, Mark Cranfield, our market's live strastis thank you very

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Speaker 3: much for joining us as we're looking at markets pricing.

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Speaker 3: As we said, the FED to hold interest rates at

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Speaker 3: its meeting next week.

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Speaker 2: Now, there's been a surge in global investor interest in

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Speaker 2: luxury travel destinations across African countries, from Gorilla, Trekking to

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Speaker 2: vineyard days. Capital is pouring into the sector from billionaires,

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Speaker 2: tech moguls and Middle East investors who are stepping in

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Speaker 2: to fill a funding gap left by banks. Our reporter

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Speaker 2: Prunesha and i Do has been writing about this and

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Speaker 2: she joins us now for more good morning. Good to

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Speaker 2: have you with us. Who are these investors and where

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Speaker 2: are they putting their money?

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Speaker 3: Exactly?

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Speaker 6: Remarkedly, these investors are some of the most high profile

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Speaker 6: individuals in the world. Our story this morning spotlights an

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Speaker 6: investment by the Dubai ruler who has invested in a

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Speaker 6: private island of the coast of Tanzania. We also have

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Speaker 6: investors like Sir Richard Branson who's picked up his second

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Speaker 6: luxury Safari lodge on the continent or in Kenya rather

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Speaker 6: last year. And there's even investor interest from Asia, with

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Speaker 6: a unit of Nepal's only multi billion dollar company looking

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Speaker 6: to invest on the continent as well.

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Speaker 3: So why are they seeing such an opportunity then in

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Speaker 3: African destinations?

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Speaker 6: I think a lot of it has to do with

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Speaker 6: a change in the way people started to travel after

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Speaker 6: the pandemic. People are very much more interested in wellness, travel, eCos,

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Speaker 6: retreats and reconnecting with nature, and Africa offers that in

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Speaker 6: leaps and bounds. That's really driving a lot of interest

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Speaker 6: in the high end of the market. At the same time,

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Speaker 6: many of the world's top hoteliers and global chains see

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Speaker 6: Africa as the last underpenetrated market for travel and tourism,

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Speaker 6: so they're also rushing in.

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Speaker 2: What are the risks then, potentially though for for investors,

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Speaker 2: I mean, we always have to think about the risks

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Speaker 2: and the benefits.

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Speaker 6: So our reporting shows that and why we talked a

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Speaker 6: little bit about the funding gap being left by banks.

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Speaker 6: They typically only fund about fifty five percent of hotel

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Speaker 6: projects on the continent, and that's because there are some

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Speaker 6: difficulties in forecasting bookings and revenue streams in Africa. There

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Speaker 6: is a unique issue where there are too few hotels

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Speaker 6: in certain markets that report performance bench marketing data times.

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Speaker 6: That affects the outlook for investments and the confidence with

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Speaker 6: which some investors get in. There are also risks related

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Speaker 6: to conflict changes in political regimes and how that could

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Speaker 6: influence the overall business environment.

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

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