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

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Speaker 2: This is the Blueberg Day ba Q podcast, available every

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

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Speaker 2: the fifth of June in London. I'm Caroline Hepcare and.

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Speaker 3: I'm Stephen Carroll. Coming up today, Donald Trump signs a

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Speaker 3: travel band that blocks people from twelve countries from entering

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Speaker 3: the United States.

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Speaker 2: The European Central Bank is on track to cut interest

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Speaker 2: rates for an eighth time as trade tensions weigh on

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Speaker 2: economic growth.

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Speaker 3: Plus targeting Germany's week spat as Friedrich Martz heads to

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Speaker 3: the White House, Europe's biggest economy looks uniquely vulnerable to

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Speaker 3: US trade policy.

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Speaker 4: Let's start with a roundup of our top stories.

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Speaker 3: US President Donald Trump has signed a travel band targeting

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Speaker 3: twelve countries, including Afghanistan, Myanmar, and Chad. The measure also

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Speaker 3: partially restricts entry from a host of other nations, including

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Speaker 3: Cuba and Venezuela. It reinstates one of the most controversial

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Speaker 3: policies from Donald Trump's first term. In a video posted online,

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Speaker 3: the US President claimed the move was necessary for national security,

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Speaker 3: citing the recent attack on an event in support of

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Speaker 3: Israeli hostages.

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Speaker 5: A recent terror attack in Boulder, Colorado has underscored the

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Speaker 5: extreme dangers posed to our country by the entry of

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Speaker 5: foreign nationals who are not properly vetted.

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Speaker 6: We don't want them.

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Speaker 3: Trump's comments follow earlier remarks blaming the immigration policies of

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Speaker 3: former President Joe Biden for the suspect's presence in the US. However,

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Speaker 3: Mohammed Solomon is an Egyptian national who overstayed his visa

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Speaker 3: and would not have been affected by the proposed ban.

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Speaker 3: The President separately signed a proclamation suspending visas for foreign

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Speaker 3: students seeking to participate in exchange programs at Harvard University.

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Speaker 2: Now, Elon Musk has rashed up his offensive against President

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Speaker 2: Trump's signature tax bill. Musk took to social media to

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Speaker 2: urge Americans to contact makers to kill the legislation, citing

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Speaker 2: it two point four trillion dollar price tag. However, Blueberg

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Speaker 2: understands that the Tesla CEO only came out against the

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Speaker 2: bill after failing to convince Republicans to preserve tax credits

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Speaker 2: for electric vehicles. Democratic Senator Chuck Schumer says that what

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Speaker 2: the former White House advisor says matters.

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Speaker 4: On the other side of the aisle.

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Speaker 7: He's not my cup of tea, to put it mildly,

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Speaker 7: but Republicans are already listening to them. They're already listening

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Speaker 7: to them. You've heard some of the right wing groups

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Speaker 7: uplift Elon Musk against Donald.

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Speaker 4: Trump Bynority Senate leader Chuck Schumer.

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Speaker 2: They're speaking as The non partisan US Congressional Budget Office

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Speaker 2: projected that President Trump's tariffs could generate more federal revenue

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Speaker 2: than would be lost through his tax cut plan. The

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Speaker 2: CBO estimates that the tariffs could shrink the budget gap

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Speaker 2: by two point eight trillion dollars over a decade. However,

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Speaker 2: that calculation assumed tariffs remain at high levels for the

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Speaker 2: entire ten year period.

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Speaker 3: Donald Trump says Russias Latimir Putin warns that he will

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Speaker 3: retaliate for a recent Ukrainian drone strike. The outcome from

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Speaker 3: a call between the two leaders is the latest sign

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Speaker 3: that US efforts to bring about peace have stalled for more.

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Speaker 3: Commanding General of the US Army in Europe, Ben Hodges

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Speaker 3: was extremely critical of Trump's social media post.

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Speaker 8: This embarrassing truth social post confirms for anybody that still

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Speaker 8: was wondering that the Trump administration has zero interest in

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Speaker 8: doing anything to put pressure on Russia to help Ukraine

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Speaker 8: or to get to some kind of sustainable peace. I

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Speaker 8: mean it was too hard for him. Their approach was

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Speaker 8: doomed to failure from the very beginning.

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Speaker 3: Ben Hodges, speaking there, Ukraine's President Vladimir Zelenski said yesterday

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Speaker 3: that peace talks so far have not been productive and

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Speaker 3: stressed that he's willing to speak directly with Putin.

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Speaker 2: Now to Europe, the European Central Bank is likely to

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Speaker 2: lower interest rates for an eighth time as its economic

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Speaker 2: outlook projections dim All and Lis surveyed by Bloomberg, predict

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Speaker 2: a quarter point cut as a central bank responds to

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Speaker 2: the shocks caused by US tariffs. Bloomberg's senior Euro Area

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Speaker 2: economist David Powell explains why there's such consensus.

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Speaker 1: The impact of the US tariffs in the area is

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Speaker 1: going to be disinflation areas. It's going to lower inflation

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Speaker 1: pressures as cheaper goods come in from China and weaker

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Speaker 1: demand ways and the economy, so as a whole, they're

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Speaker 1: pretty much all in favor of a cut.

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Speaker 2: Bloomberg's David Powell there, who adds that there's far more

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Speaker 2: uncertainty about where policy goes after today's meeting. ECB President

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Speaker 2: Christine Lagarde has to contend with both tariff uncertainty and

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Speaker 2: the prospect of a colossal boost in European defense spending.

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Speaker 3: Some of the world's biggest banks are pushing British regulators

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Speaker 3: to move faster with plans to loosen rules on bonuses.

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Speaker 3: UK regulators asked for reviews on whether to shrink how

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Speaker 3: long senior bankers need to defer their bonuses from eight

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Speaker 3: years to five years. They promised new policies by the

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Speaker 3: end of twenty twenty five. Bloomberg has learned the finance

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Speaker 3: sector wants action much faster than that.

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Speaker 6: James Wilcock has more.

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Speaker 9: The post financial crisis thinking went Bonuses reward a banker

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Speaker 9: for bets that pay off, but if banks hold onto

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Speaker 9: those bonuses for longer, they can penalize the professionals who

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Speaker 9: took overly risky choices when the downsides emerge. Yet now

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Speaker 9: the UK wants to encourage more risk in its financial system,

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Speaker 9: and the world's banks are privately asking regulators to get

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Speaker 9: a move on with changing the rules so they can

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Speaker 9: apply them to this year's pay packets. In London, James

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Speaker 9: Wilcock Bloomberg Radio.

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Speaker 2: Three quarters of Pride organizers in the UK have seen

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Speaker 2: a decline in partnerships this year. That says the top

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Speaker 2: administration's aversion to workplace diversity, equity and inclusion policies seemingly

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Speaker 2: reverberates across the Atlantic. Bloomberg's team Adebayo has.

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Speaker 10: More Pride funding from corporate partners is down over fifty

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Speaker 10: percent this year. That's according to new data from the

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Speaker 10: UK Pride Organizers Network. The cuts of its smaller parades

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Speaker 10: and celebrations the hardest, even leading to several cancelations. Pullback

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Speaker 10: from American companies has been the most noticeable in the

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Speaker 10: wake of President Trump's executive orders demanding.

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Speaker 4: The end of what he calls illegal DEI.

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Speaker 10: Declining LGBTQ support is a trend already documented in the US,

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Speaker 10: where two in five corporate executives are scaling back Pride

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Speaker 10: engagement this year. In London Tia Adebayo Bloomberg.

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Speaker 3: Radio, Wrexham Football Club is considering selling a stake which

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Speaker 3: will put its valuation at up to three hundred and

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Speaker 3: fifty million pounds. Bloomberg understands the Welsh team owned by

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Speaker 3: Hollywood stars Ryan Red and Rob Mchaelhaney is working with

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Speaker 3: advisors to gauge demand. The move comes four years since

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Speaker 3: the duo purchased a side for two million pounds in

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Speaker 3: just months after Wrexham's valuation hit one hundred million after

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Speaker 3: the Allen family bought a near fifteen percent stake. A

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Speaker 3: new valuation of around three hundred and fifty million pounds

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Speaker 3: would easily make Raxham the most expensive team in the

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Speaker 3: English Football League Championship.

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Speaker 2: Those are our top stories for you this morning, Ryan Reynolds. Interestingly,

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Speaker 2: I heard recently that the Hollywood actor says he just

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Speaker 2: turns a deaf in now to accusations, maybe that he'll

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Speaker 2: get bored with that football club. Anyway, the valuation huge

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Speaker 2: for a football club in the UK. Let's get to

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Speaker 2: the market though. European stock futures are flat this morning.

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Speaker 2: A Germany Xetra Daxo, Yes thatd it hit a record

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Speaker 2: high smpfive founded EVENI futures right now also very little action.

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Speaker 2: Of course, the overhang of Friday's jobs reports slowing things down.

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Speaker 4: It We've seen s and.

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Speaker 2: P five hunded emanees down to tenth of one percent

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Speaker 2: Japanese docks, though are down this morning, a bonds are rallying.

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Speaker 2: That's despite demand for Japan's thirty year government bond auction

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Speaker 2: seeing the weakest demand since twenty twenty three. The bid

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Speaker 2: to cover ratio two point nine two percent versus the

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Speaker 2: average over twelve months of three point thirty nine, so

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Speaker 2: that scene maybe is ramping up pressure on the government

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Speaker 2: to adjust issuance. There have been concerns though overall about

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Speaker 2: rising yields globally, so that of note this morning in

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Speaker 2: the markets, and I'll just end on the dollar which

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Speaker 2: is actually firmer a tenth of one percent this morning.

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Speaker 6: Those are the markets in a moment.

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Speaker 3: More on Donald Trump's latest travel plan, plus why the

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Speaker 3: ECB is expected to cut rates again today and why

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Speaker 3: Germany is uniquely vulnerable to America's approach to trade policy

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Speaker 3: as the Chancellor goes to Washington to meet Donald Trump.

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Speaker 6: But in the story that caught al right this morning,

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Speaker 6: is that a buzzing?

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Speaker 3: Are we here in our ears or is it my

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Speaker 3: food delivery arriving a new project lunching between delivery and

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Speaker 3: a company called Mano Drones in West Dublin is going

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Speaker 3: to see three kilometer area of the city being open

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Speaker 3: to drone deliveries for the first time, so an option

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Speaker 3: being allowed there as well.

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Speaker 6: This is something that we've heard.

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Speaker 3: Quite a lot of being promised, but the fact that

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Speaker 3: it's actually starting is a bit of a milestone.

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Speaker 2: I have a vision of you jumping up and down

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Speaker 2: on your doorstep trying to reach the food parcel. No

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Speaker 2: look joking aside. Yes, apparently food delivery companies have been

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Speaker 2: adding a lot and investing a lot in drone and

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Speaker 2: robot delivery technology. Basically, it makes the deliveries fast. They

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Speaker 2: go really fast, eighty kilometers an hour, so they really

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Speaker 2: whizz through the air quickly, and it means that you

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Speaker 2: don't have to rely on gig economy workers as much.

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Speaker 4: So maybe does that bring down costs?

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Speaker 2: Although I guess this company that signed this agreement in

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Speaker 2: Dublin mana drones. I don't know how expensive it is

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Speaker 2: to develop that technology.

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Speaker 3: Yeah, indeed, I mean interesting to see some of the

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Speaker 3: reports in Irish media about this as well, talking about

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Speaker 3: local residents complaining about the test runs that we're done

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Speaker 3: for those two because of the noise involved. Apparently it

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Speaker 3: sounds like a lawnmower.

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Speaker 4: I just think I like the joke. The drone company

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Speaker 4: is called Manna Drones. Haha, so it is a kind

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Speaker 4: of reference to what.

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Speaker 6: You've ordered, I suppose. Yeah, exactly right. You can read

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Speaker 6: the full story. Bloomberg dot Com will put a note

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Speaker 6: a link in our show notes as well.

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Speaker 3: Let's bring you more note out on Donald Trump banning

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Speaker 3: people from twelve countries from entering the United States and

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Speaker 3: placing restrictions on several more countries too. Our senior editor

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Speaker 3: Bill Ferries joins us for the details. Bill, the US

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Speaker 3: president reinstating this controversial measure from his first term, but

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Speaker 3: adding more countries to the list, including Afghanistan. What is

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Speaker 3: his rationale for selecting these countries?

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Speaker 11: Hi, Well, thanks for having me. It is a little

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Speaker 11: bit of a hodgepodge of countries scattered from Venezuela all

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Speaker 11: the way to Laos in Southeast Asia, with several African

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Speaker 11: countries in the mix. The President said that he was

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Speaker 11: doing this as partly as a response to that attack

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Speaker 11: in Boulder, Colorado on protesters buy in a Egyptian man

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Speaker 11: who had overstayed his visa. But then none of these,

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Speaker 11: none of these new regulations apply to Egypt, and it

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Speaker 11: wouldn't have affected this the suspect in that case from

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Speaker 11: getting into the country. So he said that's the reason,

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Speaker 11: But then it wouldn't have done anything in this situation.

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Speaker 11: So if I, you know, if I look at the

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Speaker 11: list here, and it's really nineteen countries that are either

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Speaker 11: full bands or restrictions. Some of them are politically very unstable,

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Speaker 11: Some of them are Muslim majority, which was a target

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Speaker 11: of Trump in his first term, and some of them,

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Speaker 11: you know, I just don't know. Some of them are

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Speaker 11: not going to be major sources of immigration to begin with,

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Speaker 11: or of even visitors or tourists. So it's probably effects

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Speaker 11: in some cases very very small number of people, like Iran,

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Speaker 11: for instance.

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Speaker 2: But President Trump has a sweeping immigration agenda in his

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Speaker 2: first term. And now, how significant are these shifts in

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Speaker 2: US immigration policy?

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Speaker 11: Yeah, I think overall, we've already seen the number The

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Speaker 11: administration is coming down much harder on visa applications, even

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Speaker 11: if you're a student trying to go to Harvard, for instance.

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Speaker 11: And we know that we've seen already some of the

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Speaker 11: travel data, tourist data that those numbers are down from

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Speaker 11: a year ago as well. There is really you know,

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Speaker 11: it's looking like, you know, an America First policy is

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Speaker 11: about you know, people who are already in the country

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Speaker 11: and not bringing in a lot more at this point.

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Speaker 11: So it looks like they are really trying to make

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Speaker 11: the US a harder place to get into, just in general,

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Speaker 11: and in some cases, as we see today, they want

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Speaker 11: to make it impossible to get in.

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Speaker 3: Another story that you've been watching for US Bill Elon

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Speaker 3: Musk continuing his efforts to stop President Trump's tax bill

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Speaker 3: from being passed by the Senate. This is the Congressional

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Speaker 3: Budget Office, as the version passed by the House, what

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Speaker 3: add two point four trillion dollars to the deficit?

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Speaker 6: Is the bill in real trouble.

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Speaker 11: It's in real trouble. It's hard to know if the

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Speaker 11: bill is going to get more affordable or not. But

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Speaker 11: even when the House, as soon as the House passed

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Speaker 11: that legislation, you had Republican senators saying, you know what

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Speaker 11: we're gonna We're probably going to have to make some changes,

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Speaker 11: whether it was they didn't like some of the cuts

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Speaker 11: to medicaid or they thought there was more room for

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Speaker 11: spending cuts for instance, or smaller tax breaks. One of

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Speaker 11: the big things on the House side was that state

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Speaker 11: and local tax deduction. That's so important to people in

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Speaker 11: New York New Jersey area. That's something that House the Senators,

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Speaker 11: Republican senators have said may need to be renegotiated. They

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Speaker 11: the challenge for Republicans is they can only lose three

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Speaker 11: votes in the Senate, and I think they only have

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Speaker 11: They have about the same margin in the House, so

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Speaker 11: they you can't. You don't have a lot of bandwidth

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Speaker 11: to make changes without losing too much support on the

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Speaker 11: other side.

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Speaker 2: Bill, thank you so much for being with us. Our

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Speaker 2: senior editor, Bill Ferries.

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Speaker 3: The European Center Bank is expected to cut interest rates

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Speaker 3: by a quarter point at its meeting today, bringing its

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Speaker 3: deposit rate to two percent. This as Donald Trump's jolts

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Speaker 3: to glow will trade dim the prospects for inflation and growth.

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Speaker 3: Our European Economics editor, Zoetion and devices with us for more.

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Speaker 3: Good morning, Zoe. Markets are certain that the ECB will

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Speaker 3: cut today is the real question?

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Speaker 6: Then what are policy makers going to do next?

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Speaker 12: The cut today is going to happen, There's really no

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Speaker 12: question about that. The next step is now the July

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Speaker 12: rate meeting will actually be a hold, and then there

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Speaker 12: should be another cut in September. That may then be

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Speaker 12: the final cut in this cycle, but we'll have to see.

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Speaker 2: In terms of the changes in US trade policy, how

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Speaker 2: is that affecting the area and the economy.

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Speaker 12: So far so one unexpected element of the trade policy

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Speaker 12: has been that the euro really has strengthened overall. One

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Speaker 12: has expected that all this America first stuff would push

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Speaker 12: the dollar up, but as we all know, the euro

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Speaker 12: has instead strengthened. That then has had an effect on inflation.

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Speaker 12: Would have thought that if the euro weekends that that

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Speaker 12: would have had an impact on inflation. But now how

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Speaker 12: inflation is actually cooled down just as we had kind

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Speaker 12: of hoped. So inflation now is under that two percent

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Speaker 12: that had been anticipated. The economy is a different story.

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Speaker 12: We're getting data today for factory orders from Germany. Those

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Speaker 12: are likely to be down. Overall, we know that this

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Speaker 12: Trump trade policy is a hit to growth, and that

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Speaker 12: is one of those questions if the ECB actually does

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Speaker 12: have to do maybe a July cut just because the

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Speaker 12: economy is in such trouble.

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Speaker 3: Watching the press conference later on, Zoe will also be

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Speaker 3: looking to see if Christina Guard might face some questions

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Speaker 3: about her own future and her job at the European

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Speaker 3: Central Bank.

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Speaker 12: Yeah, she's almost certain to face questions on that. Bloomberg

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Speaker 12: and other media have reported that the WEF have been

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Speaker 12: wooing her. The World Economic Firm has been wooing her

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Speaker 12: quite actively to become the chair of that organization. As

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Speaker 12: we know, they organize the big power in divorce every January.

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Speaker 12: Generally a big, high profile job. But then one does

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Speaker 12: have to ask, if you're the world's number two most

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Speaker 12: important cent banker after Joe Powell, do you really want

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Speaker 12: to leave to run the conference?

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Speaker 2: Interesting because the head of the conference leaving early, leaving

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Speaker 2: the job early effectively, so that put that role up

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Speaker 2: in the air. Zoi, thank you so much for being

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Speaker 2: with us. Our European Economics editor is Zoi schne Vice.

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Speaker 6: What's staying with Germany?

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Speaker 3: The Chancellor Frederick Mertz heading to Washington today for his

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Speaker 3: first meeting with Donald Trump, but comes at a time

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Speaker 3: that Europe's largest economies facing its own challenges despite the

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Speaker 3: bulish sentiment from investors. Our reporter Marilyn Martin joins us

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Speaker 3: from Frankford for more. Marilynd, good morning. What position is

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Speaker 3: Mertz in then? When he's meeting Donald Trump?

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Speaker 6: Today.

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Speaker 13: Yeah, it won't be easy meeting for him, as the

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Speaker 13: stakes are very high. Germany is particularly vulnerable to Trump's

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Speaker 13: trade policies because the post war growth model of Germany

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Speaker 13: relied heavily on exports and the US and China are

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Speaker 13: the key markets here for German firms. But now taking China,

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Speaker 13: it has turned increasingly from a consumer of German goods

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Speaker 13: to competitor. So the trade deficit with China has roughly

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Speaker 13: has increased immensely, from nine billion euros in two thousand

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Speaker 13: to eighty six billion euros in twenty twenty two. So

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Speaker 13: this just goes to show that the US market has

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Speaker 13: become increasingly important for Germany's firms, and by now it's

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Speaker 13: the country's largest export market. Now with TIFFs, the country's

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Speaker 13: firms are uniquely exposed. Trump has repeatedly called out what

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Speaker 13: he says are unfair trade practices, and that's abouts trouble

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Speaker 13: for Germany and it's new Chancellor Mayries, who actually promise

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Speaker 13: to reinvigorate growth. Companies have already withdrawn their profit forecasts

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Speaker 13: due to the trade uncertainty, and now they see how

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Speaker 13: they can adapt, for example by moving production to the US.

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Speaker 13: Mercidis has already announced, for example, moving another model to

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Speaker 13: Alabama production sites.

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Speaker 2: Okay, so today could be pretty delicate. Then in terms

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Speaker 2: of German companies in the German economy, how prepared are

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Speaker 2: they to deal with deterioration, any deterioration in relations with

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Speaker 2: the US.

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Speaker 13: Yeah, it actually comes out a very bad timing because

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Speaker 13: the industry, which is the backbone of the economy, is

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Speaker 13: already in decline, so that the production levels have been

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Speaker 13: on a downward path since the end of twenty seventeen

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Speaker 13: and they've never really recovered from the pandemic, and more

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Speaker 13: and more companies are announcing job cuts. One economist we've

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Speaker 13: talked to has said that the German industry is losing

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Speaker 13: around ten thousand posts in a month and the general

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Speaker 13: economic sentiment is very pessimistic. The economy has shrunk for

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Speaker 13: the past two years since the energy crisis due to

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Speaker 13: Russia's roy so there is an increasing pressure on the

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Speaker 13: economic model, and the new German government has recognized this

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Speaker 13: challenge and it already cleared the way for higher defense

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Speaker 13: spendings and a five hundred billion euro infrastructure fund that's

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Speaker 13: roughly five hundred and seventy billion dollars, but the key

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Speaker 13: question is how this money will be spent and whether

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Speaker 13: it will translate into putting the economy on a long

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Speaker 13: term sustainable footing.

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Speaker 3: And of course Marlon Friders is only in the job

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Speaker 3: a very short period of time after the elections in February.

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Speaker 3: What does this shift in policy and these challenges mean

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Speaker 3: for the political situation in Germany.

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Speaker 13: It's true he's only been elected in February, and while

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Speaker 13: his party came first, he's increasingly under pressure because the

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Speaker 13: second party or the second party that came after his party,

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Speaker 13: is the far right extremist party, the AfD. And now

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Speaker 13: like after the elections, his party has actually fell fallen

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Speaker 13: in pulse and once so we even showed the AfD

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Speaker 13: ahead of them. So there's a lot of pressure on.

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Speaker 14: Him now to act, and the Trump team is not

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Speaker 14: really helping him and making the situation any easier, just

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Speaker 14: because looking at Vice President Varnes who met with Alis Widel,

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Speaker 14: the AFT candidate, just before the election, and on another

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Speaker 14: more recent occasion, the German Domestic Intelligence Agency has labeled

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Speaker 14: the AfD as a right wing extreme This organization in Marcurrubio,

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Speaker 14: the Secretary of State, and then as response to that

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Speaker 14: is posted on x that this is quote unquote tyranny

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Speaker 14: in disguise, so you'll see this will be a very

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Speaker 14: delicate meeting for chance of the night.

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

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Speaker 3: Join us again tomorrow morning for all the news you

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Speaker 3: Break Europe