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

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Speaker 2: This is the Blueberg Debacurate podcast. Good morning, It's find

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Speaker 2: it the fourth of July. I'm Caroline Hepkitt in London.

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Speaker 1: And I'm Stephen Caroline Brussels. Coming up today, Donald Trump

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Speaker 1: says the US will send letters to trading partners from

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Speaker 1: today with new tarif rates as high as seventy percent

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Speaker 1: as the EU remains confident of a deal.

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Speaker 2: US Treasury Secretary Scott Bessen dismisses concerns over the dollars

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Speaker 2: reserve status in an interview with Bloomberg.

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Speaker 1: Plus chipping away at tradition. Scotland's golf industry finds itself

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Speaker 1: in the rough as elite courses eclipse local clubs.

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

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Speaker 1: US President Donald Trump says new unilateral tarifrates will range

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Speaker 1: from ten to seventy percent as his ninth of July

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Speaker 1: deadline for deals approaches. Speaking to reporters of Board Air

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Speaker 1: Force One, the President said his administration would begin sending

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Speaker 1: letters with the new rates to trading partners from today,

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Speaker 1: with the levies taking effect on the first of August.

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Speaker 3: Well, we're going to start sending letters out to various

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Speaker 3: countries starting tomorrow. Will probably have ten or twelve go

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Speaker 3: out tomorrow and over the next few days. I think

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Speaker 3: by the ninth they'll be fully covered, and they'll range

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Speaker 3: in value from maybe sixty or seventy percent tariffs to

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Speaker 3: ten and twenty percent tariffs.

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Speaker 1: However, the US President wouldn't be drawn on the rates

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Speaker 1: each country would receive or which countries would be the

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Speaker 1: first to receive letters.

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Speaker 4: Well, you're going to.

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Speaker 3: See tomorrow, rather give it tomorrow. But we have probably

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Speaker 3: twelve ten to twelve tomorrow, and then after that we'll

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Speaker 3: be sending ten or twelve a day, and as we

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Speaker 3: get along, as we get to the smaller countries, we're

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Speaker 3: pretty much going to keep the tariffs a same.

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Speaker 1: President Trump's comments aligned with his previous threat that if

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Speaker 1: countries failed to reach deals with the US before next

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Speaker 1: week's deadline, he would simply pose rates on them. So far,

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Speaker 1: the Trump administration has announced deals with the UK and Vietnam,

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Speaker 1: and agreed to a truce with China that saw the

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Speaker 1: world's two largest economies eased hit for tat tariffs.

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Speaker 2: Well, many major trading partners, such as Japan, South Korea,

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Speaker 2: and the European Union are still working to finalize tariff deals.

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Speaker 2: EU Commissioned President Osla Vondelian told reporters yesterday that the

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Speaker 2: block is aiming for an agreement in principle with the

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Speaker 2: United States by July ninth, as an agreement in detail

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Speaker 2: covering such a large trading relationship wouldn't be feasible. The

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Speaker 2: comments came as Bloomberg learned that European companies including Mercedes

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Speaker 2: Benz and LVMH are pushing for a quick trade deal

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Speaker 2: with the US to avoid tariffs and protect their interests. Meanwhile,

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Speaker 2: President Trump has expressed optimism about reaching an agreement with India,

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Speaker 2: but has spoken harshly about the prospects of an accord

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Speaker 2: with Japan.

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Speaker 1: China intends to cancel part of a two day summit

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Speaker 1: with the European Union later this month, in the latest

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Speaker 1: sign of a strain between Beijing and Brussels. The EU

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Speaker 1: Commissioned President Ursula Vonderline European Council President Antonio Costa had

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Speaker 1: planned to meet Hi Jinping in Beijing before traveling to

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Speaker 1: Central China the next day for a business summit.

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Speaker 4: The meeting will now just be one day in Beijing.

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Speaker 1: The two sides have long standing disagreements over the war

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Speaker 1: in Ukraine, Chinese industrial policy, and an unbalanced trading relationship.

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Speaker 1: China's recent export controls on rare earth magnets have come

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Speaker 1: the detriment of European industries. Bloomberg reported last month of

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Speaker 1: the two sides had also canceled the flagship EU China

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Speaker 1: High Level Economic and Trade Dialogue.

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Speaker 2: US Treasury search Scott Bessent dismissed the idea that the

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Speaker 2: dollar's recent declines raise concerns about its status as the

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Speaker 2: world's reserve currency. The greenback had its worst first half

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Speaker 2: of a year since nineteen seventy three, with the Dollar

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Speaker 2: index seeing a slide of almost eleven percent. That's led

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Speaker 2: Chinese and European policymakers to one if the global financial

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Speaker 2: system could move away from dependence on the dollar. Scott

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Speaker 2: bess End disagrees.

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Speaker 5: The price of the dollar has nothing to do with

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Speaker 5: a strong dollar policy.

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Speaker 4: It meant many times.

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Speaker 6: Over since World War Two, the demise of the dollar

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Speaker 6: as reserve currency has been predicted.

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Speaker 4: And I think once again the skept is going to

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Speaker 4: be wrong.

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Speaker 2: Scott Bessend. They're speaking to Bloomberg. The Treasury Secretary added

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Speaker 2: that if the euro hits one twenty against the dollar,

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Speaker 2: Europeans are going to quote to be squawking that it's

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Speaker 2: too strong.

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Speaker 1: President Trump secured final passage of his signature three point

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Speaker 1: four trillion dollar tax bill following a bruising campaign to

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Speaker 1: win over Republicans in Congress. The non partisan Congressional Budget

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Speaker 1: Office projects the legislation will add three point four trillion

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Speaker 1: dollars to US deficits over the next decade with tax

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Speaker 1: cuts for wealthier Americans. It also cuts Medicaid health insurance

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Speaker 1: for the poor and disabled people by nearly one trillion dollars,

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Speaker 1: as well as food stamps and college student loan. Here's

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Speaker 1: the moment. The bill passed by just four votes in

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Speaker 1: the House. On this vote, the Yaser two eighteen the

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Speaker 1: Laser two fourteen.

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Speaker 4: The motion is adopted.

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Speaker 1: The legislation now goes to the President, who says he

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Speaker 1: plans to sign the bill in a ceremony at the

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Speaker 1: White House at four pm in Washington today. The fierce

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Speaker 1: partisan battle to shape public perceptions of the measure is

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Speaker 1: likely to intensify in the coming months.

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Speaker 2: Here In the UK, Chancellor chel Reeves stressed her commitment

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Speaker 2: to fiscal discipline after a market's sell off sparked by

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Speaker 2: fears her position was in danger. Reeves admits that she

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Speaker 2: was clearly upset in the House of Commons earlier this week,

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Speaker 2: after cameras showed her crying on the front bench. The

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Speaker 2: chancellors has insisted that it was because of an issue

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Speaker 2: in her personal life unrelated to politics.

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Speaker 6: I happened to be on the camera when I had

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Speaker 6: a tough day. But today is a new day and

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Speaker 6: I'm just getting on with the job. In the first

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Speaker 6: quarter of this year, we had the fastest growing economy

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Speaker 6: in the G seven. Wages have risen by more in

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Speaker 6: the first ten months of this Labor government than they

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Speaker 6: did in the first ten years of the Conservative government.

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Speaker 6: Is this job easy? Is it easy to turn around

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Speaker 6: the economy? No, it's not.

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Speaker 4: It is tough.

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Speaker 2: Beeves's public appearance comes as she now has to grapple

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Speaker 2: with a new fiscal hole created by her own party.

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Speaker 2: The five billion pound u turn in welfare cars means

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Speaker 2: that she will very likely have to either raise taxes

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Speaker 2: or borrow more in her autumn budget.

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Speaker 1: Contributes from the footballing world have continued for Liverpool footballer

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Speaker 1: Diogo Jotta, who died in a car crash alongside his

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Speaker 1: brother in Spain yesterday. Police are investigating the possibility that

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Speaker 1: the Lamborghini they were in left the road because of

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Speaker 1: a tire blowout while overtaking. Twenty eight year old Jota

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Speaker 1: played a key role in Liverpool's recent Premier League triumph

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Speaker 1: and portugal ze way for Nations League success. FIFA president

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Speaker 1: Jianny and Fantino says he'll be greatly missed.

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Speaker 4: Fantastic person, great son, husband, father, as well. Tragic loss

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Speaker 4: from FIFA side, my site, the whole global football family.

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Speaker 1: FIFA President Jianny and Fantino's tributes were echoed by Christiano Ronaldo,

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Speaker 1: who said he's sending his Portugal teammate Diogo Jiota's family

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Speaker 1: all the strength in the world.

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Speaker 2: And those are our top stories for you this morning.

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Speaker 2: Let's have a look at the markets in terms of equities.

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Speaker 2: We're sliding now for eurostocks. Fifty futures down four tens

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Speaker 2: of one percent, s and P five hundred emni futures

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Speaker 2: also down three tens of one percent. President Trump ramping

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Speaker 2: up tariff tensions. We've had more statements just in recent minute.

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Speaker 2: In terms of other markets moving the blue bag Dollar

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Speaker 2: spot indexes week are two tenths of one percent. Remember

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Speaker 2: there is no cash treasury trading today the public holiday

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Speaker 2: in the United States. Gold is also up by almost

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Speaker 2: half of one percent this morning. This as the MSCI

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Speaker 2: Asia Pacific indexes down two tenths of one percent.

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Speaker 1: In a moment, will bring you the latest on the

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Speaker 1: countdown to Donald Trump's trade deadline. Plus my life on

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Speaker 1: the fairways of Scotland's golf courses isn't all smooth. But

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Speaker 1: another story that caught her eye this morning. Carol, I

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Speaker 1: don't know if you've ever dreamed about drifting off into

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Speaker 1: the corporate sunset with a cushy job on a board somewhere,

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Speaker 1: but that dream of currently is over. Yeah, I mean

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Speaker 1: it's I would say that the thought had perhaps crossed my

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Speaker 1: mind for future stages of my life, the Act three

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Speaker 1: or four coming down the line, But Beth cod from

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Speaker 1: bloober Coquinian says give up basically on that dream. These days,

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Speaker 1: being on a board, she says, is more like a

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Speaker 1: cold shower. The era of rubber stamping and phoning it

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Speaker 1: in is over. She references a period during COVID where

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Speaker 1: board meetings turned into emergency calls several times a month,

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Speaker 1: and she says the pace hasn't slowed down since you've

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Speaker 1: got executives leaving. So you've got boards getting involved in

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Speaker 1: finding new leaders for big companies. You've got activist investors

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Speaker 1: circling in a lot of companies as well, questions over

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Speaker 1: how a company is going to approach issues around DEI

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Speaker 1: or ESG, for example. Then add the geopolitics of that

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Speaker 1: as well. So being on a board has turned out

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Speaker 1: to be a very busy job as well. Also, I

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Speaker 1: quite like this fact. There's a lot more tension apparently

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Speaker 1: on boards. To a survey by PwC found that nearly

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Speaker 1: half of directors wanted to replace at least one of

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Speaker 1: their peers on the board as well. So apparently, even

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Speaker 1: when you're in the room, not everyone as friends.

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Speaker 2: Absolutely. Yeah, She does say that it could be of

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Speaker 2: course good for corporate governance, which you know is also

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Speaker 2: a factor here, but that there should also be and

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Speaker 2: this is a kind of growing movement as well, that

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Speaker 2: there should be better on boarding, better training if you

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Speaker 2: want to be a director. I mean there's also liability,

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Speaker 2: you know, when things go wrong. Directors have a lot

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Speaker 2: of responsibilities, so maybe that that should become sort of

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Speaker 2: a more formalized structure. But yeah, it was a really

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Speaker 2: great piece. Beth Koch from Blue Big Opinion.

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Speaker 1: Well, that's bringing more in our top story. Now, just

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Speaker 1: five days to go until Donald trump tariff pause deadline.

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Speaker 1: The US Prizeman has been giving more details about what

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Speaker 1: countries should expect to happen after that. Our senior Robel

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Speaker 1: Ferries is with us now for more. Bill Donald Trump,

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Speaker 1: we've been hearing from him just in the past hour

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Speaker 1: or so talking about what will happen after July ninth.

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Speaker 1: Letters going out to countries from today. Is this better

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Speaker 1: or worse than we had expected?

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Speaker 5: Well, I think it's going to depend on what that

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Speaker 5: letter says, depending on which country you're in. I mean,

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Speaker 5: Trump landed in Washington on Air Force one and said

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Speaker 5: he'd start sending out ten or twelve letters to countries

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Speaker 5: and at the rates that the tariff rates that countries

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Speaker 5: will have to pay will be up to possibly seventy percent.

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Speaker 5: So I think that is a worst case scenario for

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Speaker 5: just about any country out there.

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Speaker 4: At this point.

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Speaker 5: Of course, there's been a lot of scrutiny of the

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Speaker 5: few details we have on this Vietnam deal. That was

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Speaker 5: reached with a twenty percent tariff for Vietnam's exports to

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Speaker 5: the US and a forty percent sent tariff for goods

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Speaker 5: that were shipped transshipped through Vietnam. So I think there's

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Speaker 5: going to be you know, a lot of countries were

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Speaker 5: hoping that maybe they could get a better deal than Vietnam,

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Speaker 5: something maybe between ten and twenty percent. I think to

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Speaker 5: hear seventy percent is going to be alarming. The other

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Speaker 5: thing that Donald Trump said when he landed in Washington

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Speaker 5: was that countries will start paying those tariffs on August first,

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Speaker 5: which does lead me to wonder whether there is a

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Speaker 5: little wiggle room between July ninth and August first for

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Speaker 5: some countries to try to work a better deal. We'll

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Speaker 5: have to see how that plays out.

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Speaker 2: Yeah, I mean, so father are only three framework deals

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Speaker 2: that have been announce so we're told that there are

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Speaker 2: more coming. So who are the likely countries to get

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Speaker 2: across the line? I mean seems to be a bit

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Speaker 2: of a guessing game.

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Speaker 4: It really is.

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Speaker 5: I mean, you know, if we took this process back

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Speaker 5: a month or two, we heard repeatedly that Japan was

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Speaker 5: near the front of the front of the queue. In

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Speaker 5: terms of getting some kind of an agreement, and things

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Speaker 5: seem to be going well. It's just been in the

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Speaker 5: bat last ten days or so, we've heard the President

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Speaker 5: really critical of Japan and their their rice and autos policy,

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Speaker 5: so they perhaps they've fallen back. Maybe they'll just get

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Speaker 5: a letter. India, we know that their negotiators have stayed

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Speaker 5: in Washington longer to work on a deal that's a

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Speaker 5: very complicated pact. It's another country that might get more

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Speaker 5: of a framework and an agreement to continue on. But

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Speaker 5: then there's a lot of countries that fall kind of

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Speaker 5: below that radar and might be thinking, you know, maybe

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Speaker 5: what Vietnam got is the same thing that we're going

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Speaker 5: to get if we're in Southeast Asia. So those are

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Speaker 5: the kind of the countries we're looking for. I'd say

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Speaker 5: South Korea is on that list as well. And the EU,

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Speaker 5: of course, there's been some more positive signals between the

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Speaker 5: US and the EU and the past week.

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Speaker 4: Yeah, well, let's talk a little bit about that.

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Speaker 1: I mean, e's Levanderlin talking about she expects there to

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Speaker 1: be an agreement in principle by the deadline. Marshaftovitch was

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Speaker 1: in Washington yesterday. What is the latest that we're hearing

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Speaker 1: about those negotiations.

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Speaker 5: Well, you know, the EU was at one point facing

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Speaker 5: a flat fifty percent tariff. There's been a lot more

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Speaker 5: talk about perhaps like a different levels for different products

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Speaker 5: type of things, so much more nuanced agreement. That's one

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Speaker 5: of those ones that I think is also, like India,

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Speaker 5: very complex. There's obviously it's the biggest US trading relationship

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Speaker 5: there is, so I think there's talk about, you know,

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Speaker 5: perhaps some goods like Bourbon might be taken off the

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Speaker 5: EU's retaliatory list if they get perhaps a better deal

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Speaker 5: from the US. But the framework you're talking about, that's

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Speaker 5: what we saw with the UK. It's generally what we

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Speaker 5: saw with China. I would expect it would fall the

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Speaker 5: EU deal would fall in there where we get some outlines,

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Speaker 5: but perhaps talks continue after next week.

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Speaker 2: Meanwhile, President Trump is due to sign his tax bill

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Speaker 2: into law later today. How big a win is it

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Speaker 2: and what does that actually mean for the US economy.

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Speaker 5: It's a big police victory for Donald Trump. This has

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Speaker 5: basically been his only signature piece of legislation that he's

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Speaker 5: talked about since taking office. It includes, I mean some

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Speaker 5: huge priorities. It includes an extension of his twenty seventeen

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Speaker 5: tax cuts. It includes an increase in the debt ceialing

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Speaker 5: limit that the US was set to hit in August,

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Speaker 5: so that basically takes that off the table for markets.

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Speaker 5: But it also includes a lot of things like increased

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Speaker 5: money for border protection and then cuts to Medicaid and

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Speaker 5: who qualifies for that health insurance program. So it really

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Speaker 5: is going to be a big overhaul of the US

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Speaker 5: economy and the way business has been done. In terms

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Speaker 5: of what comes next, He's gotten a lot of his

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Speaker 5: legislative priorities. There's still a budget that will have to

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Speaker 5: come later this year.

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Speaker 1: Okay, both fairies, our senior editor, thank you very much

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Speaker 1: for joining us.

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Speaker 2: Well, now I want to talk about golf in Scotland.

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Speaker 2: The game is traditionally more accessible than in the US

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Speaker 2: or in England, but for dozens of small clubs away

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Speaker 2: from the glitz of maybe Royalty or President Trump's own

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Speaker 2: two resorts, the ones that aren't on the golf tourism routes,

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Speaker 2: rising costs and less visibility are making life tough. Bloomberg's

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Speaker 2: James Ludden joins US now from Edinburgh for more on

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Speaker 2: this really interesting story. James the business of sports. Scotland

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Speaker 2: is the home of golf, where it is a game

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Speaker 2: for the masses. How big an industry is it in Scotland.

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Speaker 7: Well, it's a key part of tourism, which is in

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Speaker 7: turn key for the Scottish economy. It was tourism alone

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Speaker 7: is worth about eleven billion pounds to the Scottish economy.

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Speaker 7: But when it comes to golf, numbers are kind of

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Speaker 7: hard to pin down. But there was one study very

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Speaker 7: recently that looked into the town of Saint Andrews, which

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Speaker 7: some of your listeners might know, is the symbolic home

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Speaker 7: of golf. Just that one little corner of southeast Scotland

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Speaker 7: that is worth three hundred and seventeen million pounds to

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Speaker 7: the economy. So if you extrapolate that across the broader country, yeah,

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Speaker 7: it's worth an awful lot more than that. But there's

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Speaker 7: also key that is it's a part of the national culture.

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Speaker 7: That's why it is such a big deal.

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Speaker 1: So what's happening then for the smaller clubs versus the

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Speaker 1: perhaps very well known courses you mentioned.

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Speaker 7: Yeah, so the smaller clubs, you know, the problem they've got,

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Speaker 7: like most most businesses, really is to do with cost.

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Speaker 7: If you think you are a relatively smaller club, you've

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Speaker 7: got to think you have payroll taxes going up, You've

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Speaker 7: got fertilizer costs going up. You know, how many times

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Speaker 7: do you send out your lawmowner to go and cut

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Speaker 7: the greens? Is it once a day? Is it twice

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Speaker 7: a week? Every time you send out a person to

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Speaker 7: cut the fairways or cut the greens, that's going to

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Speaker 7: cost money. So you've got to work out those of costs.

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Speaker 7: They do add up. And then at the top end

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Speaker 7: of the equation, if you're not going to compete act

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Speaker 7: you know with the big boys like Saint Andrews or

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Speaker 7: you know, more relevantly possibly with the Trump courses at

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Speaker 7: Turnbury and on the East coast also by Aberdeen, if

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Speaker 7: you're not going to compete with them directly on price,

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Speaker 7: you've got to think we've got to play pretty canny

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Speaker 7: to make sure that well our business is sustainable. And

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Speaker 7: that's really where the issue is. There is what five

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Speaker 7: hundred and fifty also courses dotted around the country, and yeah,

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Speaker 7: that's a lot of golf acreage and playing numbers, but

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Speaker 7: two hundred thousand here in Scotland and of those two

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Speaker 7: hundred thousand, only a small proportion is going to prepare

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Speaker 7: to pay what three hundred quid plus to play at

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Speaker 7: Trump or what have you. And you know, if let's say,

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Speaker 7: so let's say, if you decide on the fly, you

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Speaker 7: know what, I want to go and play at Trump

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Speaker 7: Turnbury today on the West coast, if you haven't got

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Speaker 7: a package of like a combination or some sort of deal,

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Speaker 7: you are going to be forking out something like one

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Speaker 7: thousand pounds just to knock a very small white ball

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Speaker 7: around the Scottish links, which for the historically fairly frugal

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Speaker 7: Scott's person is not really an option.

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Speaker 2: Yes, that's a yeah, one thousand pounds to play would

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Speaker 2: be yeah, perhaps expensive. I wondered, James, this is such

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Speaker 2: an interesting story. I did not know that there were

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Speaker 2: so many golf courses frankly in Scotland. Do you play?

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Speaker 2: Why did you write about this? And also is golf

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Speaker 2: increasingly a skill needed for business? I just wonder that, obviously,

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Speaker 2: because you've mentioned President Trump's courses, is golf you know

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Speaker 2: a huge deal in business?

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Speaker 7: Still it can be. I mean, I think about ten

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Speaker 7: to fifteen years ago, is very much the thing. It's

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Speaker 7: maybe not quite so much as it was. But having

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Speaker 7: said that, the forgive if I get is wrong the

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Speaker 7: president or Prime Minister of Finland. He spent time playing

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Speaker 7: golf with Trump at a recent visit, because he played

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Speaker 7: in his youth and he was able to compete with

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Speaker 7: Trump if you're like on a level playing field. So

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Speaker 7: it does have its upside. Certainly, Yes, I do play.

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Speaker 7: I don't play it particularly well. I find it immensely frustrating,

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Speaker 7: but also great fun and a lot of it is

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Speaker 7: also about the nineteenth hold, of course, which is equally important.

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