1 00:00:00,120 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,680 --> 00:00:12,360 Speaker 2: This is the Bloomberg Day baker At podcast, available every 3 00:00:12,360 --> 00:00:15,400 Speaker 2: morning on Apple, Spotify or whatever you listen. It's Tuesday, 4 00:00:15,440 --> 00:00:17,799 Speaker 2: the twenty second of April. Here in London. I'm Caroline 5 00:00:17,840 --> 00:00:18,520 Speaker 2: Hipkot and. 6 00:00:18,480 --> 00:00:19,360 Speaker 3: I'm Stephen Carroll. 7 00:00:19,440 --> 00:00:22,599 Speaker 4: Coming up today, Donald Trump demands an immediate rate cut 8 00:00:22,680 --> 00:00:26,320 Speaker 4: from Fed charge Jerome Powell as investors flee US docs, 9 00:00:26,480 --> 00:00:30,400 Speaker 4: bonds and the dollar amid growing Sell America momentum a. 10 00:00:30,440 --> 00:00:34,559 Speaker 2: Two trillion dollar tariff hit. Bloomberg crunches the numbers on 11 00:00:34,680 --> 00:00:37,280 Speaker 2: the cost of the US president's global. 12 00:00:37,040 --> 00:00:39,160 Speaker 3: Levies plus the art of the deal. 13 00:00:39,360 --> 00:00:42,200 Speaker 4: Rachel Reeves vows to put the UK front and center 14 00:00:42,400 --> 00:00:45,080 Speaker 4: as she prepares for face to face talks with her 15 00:00:45,159 --> 00:00:46,720 Speaker 4: US counterpart, Scott Bessant. 16 00:00:46,880 --> 00:00:48,920 Speaker 2: Let's start with the roundup of our top stories. 17 00:00:49,440 --> 00:00:52,680 Speaker 4: US markets have sold off amid renewed attacks from President 18 00:00:52,720 --> 00:00:56,400 Speaker 4: Trump on Federal Reserve charg Jerome Powell. In his latest 19 00:00:56,400 --> 00:00:59,560 Speaker 4: broadside against the central Bank, Chief Trump warned the economy 20 00:00:59,640 --> 00:01:03,480 Speaker 4: could slow unless quote mister too late, a major loser 21 00:01:03,760 --> 00:01:05,080 Speaker 4: lower's interest rates. 22 00:01:05,240 --> 00:01:05,559 Speaker 3: Now. 23 00:01:06,200 --> 00:01:09,920 Speaker 4: Bloomberg reports that Trump has privately questioned advisors about the 24 00:01:09,959 --> 00:01:13,920 Speaker 4: possibility of removing Powell, though some administration officials have cautioned 25 00:01:14,000 --> 00:01:17,720 Speaker 4: him against such a move. Economists widely expect Trump's tariffs 26 00:01:17,760 --> 00:01:21,080 Speaker 4: to boost inflation and slow growth, even if just temporarily. 27 00:01:21,560 --> 00:01:25,360 Speaker 4: Former Federal Reserve economists Claudia Sam says markets need to 28 00:01:25,360 --> 00:01:27,960 Speaker 4: be alive to the possibility of the White House trying 29 00:01:28,000 --> 00:01:28,960 Speaker 4: to remove Powell. 30 00:01:29,319 --> 00:01:31,560 Speaker 5: I take it very seriously, and I you know, this 31 00:01:31,640 --> 00:01:35,520 Speaker 5: administration has taken steps, whether it's with the tariffs or 32 00:01:35,520 --> 00:01:37,960 Speaker 5: with downsides in the government that really were, you know, 33 00:01:38,040 --> 00:01:42,000 Speaker 5: beyond expectations. So I you know, the unthinkable is thinkable 34 00:01:42,040 --> 00:01:43,000 Speaker 5: with this administration. 35 00:01:44,480 --> 00:01:47,240 Speaker 4: Thadia Sam, speaking there after Federal Reserve Charge your own. 36 00:01:47,240 --> 00:01:49,960 Speaker 4: Powell again stressed last week that the Center Bank must 37 00:01:50,040 --> 00:01:54,800 Speaker 4: ensure tariffs don't trigger a more persistent rise in inflation. 38 00:01:55,600 --> 00:01:59,120 Speaker 2: Trump's escalating frustration with the Fed chair has triggered a 39 00:01:59,200 --> 00:02:03,160 Speaker 2: broad fly from US stocks, bonds, and the dollar has 40 00:02:03,160 --> 00:02:07,680 Speaker 2: traders grow increasingly uneasy with the administration's policy approach. A 41 00:02:07,800 --> 00:02:10,280 Speaker 2: key gauge of the greenback is on track for a 42 00:02:10,320 --> 00:02:13,400 Speaker 2: fourth straight day of losses as sentiment on Wall Street 43 00:02:13,440 --> 00:02:16,800 Speaker 2: shifts from optimism to what some are calling a cell 44 00:02:16,919 --> 00:02:21,600 Speaker 2: America mood. Apollos Chief economist Torston Slock says the US 45 00:02:21,680 --> 00:02:25,399 Speaker 2: economy is facing an ever growing list of headwinds. 46 00:02:26,200 --> 00:02:29,720 Speaker 1: It's just not only terms and retaliation, which of course 47 00:02:29,720 --> 00:02:32,720 Speaker 1: are the most important ones. It's also corporate confidence is 48 00:02:32,800 --> 00:02:35,919 Speaker 1: very low. The Conference Board measures and also the CEO 49 00:02:36,320 --> 00:02:41,240 Speaker 1: index measure from various sources and CFO measures going lower. 50 00:02:41,440 --> 00:02:43,840 Speaker 3: KAPEX plans are also grinding lower. 51 00:02:43,639 --> 00:02:46,040 Speaker 5: Literally for the last two months, and because of course, 52 00:02:46,040 --> 00:02:48,399 Speaker 5: consumer confidence is also at the lowest level. 53 00:02:48,320 --> 00:02:49,200 Speaker 3: Literally in decades. 54 00:02:49,919 --> 00:02:53,919 Speaker 2: Apollos Chief economists Torston Slock speaking there as investors continue 55 00:02:53,960 --> 00:02:58,120 Speaker 2: to pile into gold amid increasing market uncertainty. The precious 56 00:02:58,160 --> 00:03:02,280 Speaker 2: metal has now hit yet another code, topping three four 57 00:03:02,360 --> 00:03:05,360 Speaker 2: hundred and forty four dollars an ounce following a two 58 00:03:05,400 --> 00:03:07,720 Speaker 2: point nine percent search on non day. 59 00:03:08,400 --> 00:03:10,799 Speaker 4: Donald Trump's trade tariffs and it's the beginning of April, 60 00:03:10,840 --> 00:03:13,880 Speaker 4: will shave about two trillion dollars off the global economy 61 00:03:13,880 --> 00:03:16,320 Speaker 4: by the end of twenty twenty seven, according to a 62 00:03:16,360 --> 00:03:19,440 Speaker 4: new estimate from Bloomberg Economics. The effects of the trade 63 00:03:19,480 --> 00:03:22,280 Speaker 4: war hanging over the world's economic leaders as they gather 64 00:03:22,360 --> 00:03:25,280 Speaker 4: of the IMF and World Bank Spring meetings in Washington, 65 00:03:25,720 --> 00:03:29,560 Speaker 4: Saxo Banks Chief Investments strass Charity Sanana says, the shape 66 00:03:29,560 --> 00:03:30,880 Speaker 4: of the shock is still unclear. 67 00:03:31,200 --> 00:03:32,760 Speaker 6: Will it be a growth shock, will it be an 68 00:03:32,760 --> 00:03:36,400 Speaker 6: inflation shock? So some kind of an he went driven 69 00:03:36,920 --> 00:03:39,440 Speaker 6: you know issues maybe resulting in a kind of a 70 00:03:39,600 --> 00:03:42,960 Speaker 6: cyclical issue, some kind of a recession or a saculation, whatever. 71 00:03:42,760 --> 00:03:43,240 Speaker 3: It might be. 72 00:03:44,040 --> 00:03:46,720 Speaker 6: But now we're just mophing it into a structural one, 73 00:03:46,760 --> 00:03:49,440 Speaker 6: you know, with the kind of questions that it raises 74 00:03:49,600 --> 00:03:52,800 Speaker 6: on the credibility you know of the US and usc. 75 00:03:52,600 --> 00:03:57,120 Speaker 4: ASCID Saxo Banks Chief Investment Strategies Charity Sanana, there the 76 00:03:57,160 --> 00:04:01,000 Speaker 4: tariff moves that brought into question US economic answer, security leadership, 77 00:04:01,080 --> 00:04:04,560 Speaker 4: and the multilateral rules based system symbolized by institutions like 78 00:04:04,640 --> 00:04:06,080 Speaker 4: the International Monetary Fund. 79 00:04:06,600 --> 00:04:09,960 Speaker 2: Many leaders will be using the IMF gathering as an 80 00:04:10,000 --> 00:04:13,440 Speaker 2: opportunity for trade talks with the US government. UK Chancellor 81 00:04:13,520 --> 00:04:16,200 Speaker 2: Rachel Reeves is one of the finance ministers flying to 82 00:04:16,440 --> 00:04:19,800 Speaker 2: Washington to make the case for free trade. She's expected 83 00:04:19,800 --> 00:04:22,640 Speaker 2: to meet with US Treasury Secretary Scottan Bessen for the 84 00:04:22,680 --> 00:04:23,640 Speaker 2: first time there. 85 00:04:24,200 --> 00:04:26,839 Speaker 4: The United States has announced new tariffs on solar panel 86 00:04:26,839 --> 00:04:31,159 Speaker 4: imports from Cambodia, Vietnam, Malaysia and Thailand. The levies could 87 00:04:31,200 --> 00:04:34,480 Speaker 4: be more than three thousand, five hundred percent the culmination 88 00:04:34,560 --> 00:04:37,479 Speaker 4: of a trade probe started by former President Joe Biden. 89 00:04:37,800 --> 00:04:41,080 Speaker 4: Many Chinese manufacturers had set up operations in Southeast Asia 90 00:04:41,120 --> 00:04:44,320 Speaker 4: after they were hit by similar tariffs twelve years ago. 91 00:04:44,440 --> 00:04:48,440 Speaker 4: The tariffs are likely to boost US domestic manufacturing but 92 00:04:48,520 --> 00:04:51,279 Speaker 4: increase the cost of ramping up renewable energy production. 93 00:04:52,040 --> 00:04:54,839 Speaker 2: To other news, a paper conclave is now due to 94 00:04:54,880 --> 00:04:58,080 Speaker 2: decide on Pope France's successor after he passed away on 95 00:04:58,240 --> 00:05:01,320 Speaker 2: Eastern Monday. The College of Cardinals will meet in about 96 00:05:01,320 --> 00:05:04,040 Speaker 2: two weeks time, when around one hundred and thirty five 97 00:05:04,160 --> 00:05:07,240 Speaker 2: members will cast their vote. Amongst those traveling to Rome 98 00:05:07,279 --> 00:05:10,520 Speaker 2: for the proceedings will be the Archbishop of Westminster, Cardinal 99 00:05:10,600 --> 00:05:15,960 Speaker 2: Vincent Nichols, who says that Francis will be remembered fondly his. 100 00:05:16,120 --> 00:05:19,640 Speaker 7: Commitment to the individual and to the people on the 101 00:05:20,000 --> 00:05:24,880 Speaker 7: edges of society, who is unquestioned, but he also fashioned 102 00:05:24,960 --> 00:05:28,800 Speaker 7: that in a way directed to those who hold the 103 00:05:28,839 --> 00:05:30,520 Speaker 7: power and generate the world. 104 00:05:31,640 --> 00:05:35,600 Speaker 2: The Archbishop of Westminster, speaking there, the election could threaten 105 00:05:35,680 --> 00:05:38,960 Speaker 2: what Pope France's supporters see as his legacy as a 106 00:05:39,040 --> 00:05:43,440 Speaker 2: reforming pope if a more conservative candidate is chosen and 107 00:05:43,480 --> 00:05:46,599 Speaker 2: moves the Church away from his positions on issues such 108 00:05:46,640 --> 00:05:48,640 Speaker 2: as LGBTQ rights. 109 00:05:49,640 --> 00:05:53,159 Speaker 4: American, European and Ukrainian officials are due to hold talks 110 00:05:53,200 --> 00:05:55,800 Speaker 4: in London tomorrow as the White House pushes for a 111 00:05:55,839 --> 00:05:59,440 Speaker 4: deal to hold Russia's invasion, whom We're understands. The US 112 00:05:59,480 --> 00:06:02,839 Speaker 4: ecritaristic Marco Rubio and special envoys are expected to meet 113 00:06:02,839 --> 00:06:07,200 Speaker 4: foreign ministers and advisors from France, Germany, the UK and Ukraine. 114 00:06:07,440 --> 00:06:09,720 Speaker 4: The gathering is intended as a follow up to meetings 115 00:06:09,720 --> 00:06:12,839 Speaker 4: in Paris last week, where the US shared proposals to 116 00:06:12,960 --> 00:06:17,520 Speaker 4: enable a ceasefire and peace agreement between Russia and Ukraine. 117 00:06:17,920 --> 00:06:20,080 Speaker 2: Those are top stories for you this morning. Let's look 118 00:06:20,120 --> 00:06:22,839 Speaker 2: at the markets at the Bloomberg Dollar Spot index losing 119 00:06:22,839 --> 00:06:25,880 Speaker 2: ground again for a fourth day in a row. There 120 00:06:25,920 --> 00:06:28,320 Speaker 2: had been some early gains, but those seem to have evaporated. 121 00:06:28,360 --> 00:06:30,960 Speaker 2: The Bloomberg Dollar spot indexes currently down a tenth of 122 00:06:31,000 --> 00:06:33,839 Speaker 2: one percent, the yenner one hundred and forty handle, the 123 00:06:33,839 --> 00:06:36,760 Speaker 2: euro edging higher about a tenth almost two tenths of 124 00:06:36,800 --> 00:06:39,680 Speaker 2: one percent this morning US stock futures are actually in 125 00:06:39,720 --> 00:06:42,520 Speaker 2: the green after the plunge that we saw on Monday. 126 00:06:43,240 --> 00:06:47,680 Speaker 2: Asian equities and mixed Chinese tech shares drifting in Hong 127 00:06:47,800 --> 00:06:52,000 Speaker 2: Kong this as we see the Topics Index upper tenth 128 00:06:52,080 --> 00:06:57,080 Speaker 2: and the Nikky slightly lower this morning. As for oil prices, 129 00:06:57,440 --> 00:07:00,760 Speaker 2: WTI crud futures climbing one percent this on. In gold 130 00:07:01,080 --> 00:07:04,320 Speaker 2: up one point seven percent, so we're actually approaching the 131 00:07:04,680 --> 00:07:08,120 Speaker 2: thirty five hundred dollar mark four hundred and eighty two, 132 00:07:08,440 --> 00:07:10,440 Speaker 2: and looking at the bond market as tenny USC is 133 00:07:10,440 --> 00:07:12,960 Speaker 2: at four forty three, up by two basis points. Those 134 00:07:12,960 --> 00:07:13,600 Speaker 2: are the markets. 135 00:07:13,960 --> 00:07:15,560 Speaker 4: In a moment, we'll bring you more on the pressure 136 00:07:15,600 --> 00:07:18,360 Speaker 4: on Jerown Powell. Plus Rachel Reeves heads to Washington for 137 00:07:18,400 --> 00:07:21,000 Speaker 4: those IMF and World Bank meetings in the shadow of 138 00:07:21,080 --> 00:07:22,560 Speaker 4: Trump's tariffs. 139 00:07:22,600 --> 00:07:25,280 Speaker 3: But another story that we've caught our eye this morning. 140 00:07:25,480 --> 00:07:28,960 Speaker 4: The author Rachel Gisa has been writing for BusinessWeek about 141 00:07:29,040 --> 00:07:31,000 Speaker 4: a topic that she's written a book about as well. 142 00:07:31,040 --> 00:07:34,160 Speaker 3: But this is to do with the title is. 143 00:07:34,120 --> 00:07:37,600 Speaker 4: Building a Better Man of Sphere, but something that's being 144 00:07:37,600 --> 00:07:41,080 Speaker 4: reflected on as the particularly masculine approach to policy that's 145 00:07:41,120 --> 00:07:43,320 Speaker 4: been taken under the Trump administration. 146 00:07:42,880 --> 00:07:46,000 Speaker 2: Yeah, sort of hyper aggressive manhood, but not the sort 147 00:07:46,040 --> 00:07:50,400 Speaker 2: of masculine world let's say Ronald Reagan where it's kind 148 00:07:50,400 --> 00:07:54,360 Speaker 2: of tough sheriffs, that sort of part of Familia's type 149 00:07:54,600 --> 00:07:58,600 Speaker 2: of world that Rachel describes. In fact, she talks about 150 00:07:59,000 --> 00:08:01,760 Speaker 2: the men in the inner circle of Donald Trump, Elon 151 00:08:01,840 --> 00:08:04,520 Speaker 2: Musk and JD. Vance and Mark Rubio and Pete Hegser 152 00:08:04,640 --> 00:08:08,360 Speaker 2: than others not being actually in the kind of traditional 153 00:08:08,440 --> 00:08:13,200 Speaker 2: American archetypal sort of mode, but actually forming this kind 154 00:08:13,240 --> 00:08:16,800 Speaker 2: of insecure model of masculinity. She says that the manuscript 155 00:08:16,880 --> 00:08:19,760 Speaker 2: online doesn't have to be like that, that there could 156 00:08:19,800 --> 00:08:23,119 Speaker 2: be a kind of another another way, and she brings 157 00:08:23,120 --> 00:08:27,840 Speaker 2: out some really interesting statistics that for example, Goat, which 158 00:08:27,880 --> 00:08:30,360 Speaker 2: is a research firm, finds that young men in the 159 00:08:30,440 --> 00:08:34,040 Speaker 2: US a quarter of them follow fashion influencers, thirty percent 160 00:08:34,080 --> 00:08:36,679 Speaker 2: are into film and theater and acting. So that there 161 00:08:36,720 --> 00:08:38,800 Speaker 2: could be a kind of much broader Internet that you 162 00:08:38,840 --> 00:08:42,120 Speaker 2: could respond to young men's desires for that connection. 163 00:08:42,920 --> 00:08:45,720 Speaker 4: It's not that the Internet as bad, articles that there 164 00:08:45,720 --> 00:08:47,760 Speaker 4: are bad parts of the Internet, and perhaps what we 165 00:08:47,800 --> 00:08:51,400 Speaker 4: need to be able to do is support boys and 166 00:08:51,440 --> 00:08:54,760 Speaker 4: young men in I suppose finding the diversity that's out 167 00:08:54,760 --> 00:08:57,520 Speaker 4: there as well, rather than necessarily falling into. 168 00:08:57,640 --> 00:08:59,800 Speaker 3: Some of the murkier part of it. But it's a 169 00:08:59,800 --> 00:09:00,760 Speaker 3: really interesting reader. 170 00:09:00,760 --> 00:09:03,480 Speaker 4: You'll find it at Bloomberg dot com and on the terminal, 171 00:09:03,520 --> 00:09:05,520 Speaker 4: and if you're listening to the Bloomberg Daybreak You're a podcast, 172 00:09:05,600 --> 00:09:07,560 Speaker 4: you'll find a link to the article in our show notes. 173 00:09:08,360 --> 00:09:10,800 Speaker 2: Now to the markets we have seen world swings or 174 00:09:10,800 --> 00:09:13,680 Speaker 2: markets as traders face a new source of uncertainty? Will 175 00:09:13,720 --> 00:09:16,800 Speaker 2: Donald Trump tie to removed your own Powell as the 176 00:09:16,920 --> 00:09:18,160 Speaker 2: chair of the Federal Reserve? 177 00:09:18,400 --> 00:09:19,079 Speaker 3: Butlin a big opinion. 178 00:09:19,120 --> 00:09:22,160 Speaker 2: Columist Daniel mos Jones is now to discuss, Daniel, Good Morning, 179 00:09:22,559 --> 00:09:26,160 Speaker 2: how precarious do we think Powell's position is now? 180 00:09:27,640 --> 00:09:30,240 Speaker 8: I want to go back to a remark that Claudia 181 00:09:30,360 --> 00:09:34,320 Speaker 8: sam made on air just a few minutes ago. She says, 182 00:09:35,000 --> 00:09:38,800 Speaker 8: it's a very real possibility. I agree, it certainly is 183 00:09:38,840 --> 00:09:41,920 Speaker 8: a possibility. Now does that make it a probability? I 184 00:09:42,040 --> 00:09:45,160 Speaker 8: don't know. If you look at the way markets have 185 00:09:45,280 --> 00:09:51,880 Speaker 8: behaved since Thursday morning, US time, when Trump resumed his 186 00:09:52,040 --> 00:09:54,320 Speaker 8: threats to get rid of Powell, it's that there's been 187 00:09:54,360 --> 00:09:58,560 Speaker 8: in abeyance for a little while the reaction has been 188 00:09:58,880 --> 00:10:04,480 Speaker 8: a swift and punishing so as the folks at ISI 189 00:10:04,679 --> 00:10:08,280 Speaker 8: ever Core have asked, if you liked the market reaction 190 00:10:08,480 --> 00:10:13,000 Speaker 8: to the tariffs, get ready for something very special In 191 00:10:13,040 --> 00:10:14,719 Speaker 8: the event, Powell is dismissed. 192 00:10:16,280 --> 00:10:19,880 Speaker 4: In context of central bank independence, though, is there's a 193 00:10:19,920 --> 00:10:22,400 Speaker 4: bigger thrast than what we've seen before. It's not the 194 00:10:22,400 --> 00:10:25,240 Speaker 4: first time we've heard, but it's got crestsism of central bankers. 195 00:10:27,760 --> 00:10:31,960 Speaker 8: Trump has been the first president in some decades to 196 00:10:32,840 --> 00:10:36,680 Speaker 8: openly take on the FED. What we tend to forget 197 00:10:36,800 --> 00:10:41,840 Speaker 8: is prior to the Clinton administration this was very widespread. 198 00:10:42,360 --> 00:10:44,960 Speaker 8: One of the things that Bob Ruben imposed on the 199 00:10:44,960 --> 00:10:48,000 Speaker 8: Clinton white House was we don't criticize the FED the 200 00:10:48,040 --> 00:10:50,360 Speaker 8: otherwise we believe in a strong ballot or so much 201 00:10:50,400 --> 00:10:56,560 Speaker 8: for that one. You know, Look, central banking history is 202 00:10:56,679 --> 00:11:01,000 Speaker 8: full of anecdotes about pressure that people like Richard Nixon, 203 00:11:01,120 --> 00:11:04,400 Speaker 8: like Lyndon Johnson, like others brought to bear. There was 204 00:11:04,440 --> 00:11:08,760 Speaker 8: a wartime monetary policy that existed under FDR and Harry Truman. 205 00:11:10,320 --> 00:11:17,960 Speaker 8: In Asia, central bank independence is slightly less tootemic, but 206 00:11:18,040 --> 00:11:23,520 Speaker 8: it is questioned. Nonetheless, serious questions have arisen about independence 207 00:11:23,880 --> 00:11:28,040 Speaker 8: in Indonesia, in Thailand, and in New Zealand, which rolled 208 00:11:28,040 --> 00:11:31,720 Speaker 8: out the model of a modern central bank in nineteen ninety. 209 00:11:32,280 --> 00:11:36,280 Speaker 8: The government has really done some things to bring the 210 00:11:36,320 --> 00:11:40,520 Speaker 8: bank to heal. So look, this is not God given. Okay. 211 00:11:40,520 --> 00:11:42,800 Speaker 8: If you look at the US Constitution actually says nothing 212 00:11:42,800 --> 00:11:47,320 Speaker 8: about the Federal Reserve. Congress has delegated the power to 213 00:11:47,320 --> 00:11:51,360 Speaker 8: set monetary policy to the Federal Reserve. And I'll just 214 00:11:51,679 --> 00:11:56,280 Speaker 8: one other thing. I'm not defending Trump. Political pressure on 215 00:11:56,360 --> 00:12:02,240 Speaker 8: the FED has historically been misunderstood. Certainly the decade I 216 00:12:02,320 --> 00:12:05,280 Speaker 8: spint in Washington, the thing the FED worried about the 217 00:12:05,320 --> 00:12:09,840 Speaker 8: most was political approsure from the Congress and changes to 218 00:12:09,880 --> 00:12:11,520 Speaker 8: the Federal Reserve Act. 219 00:12:12,160 --> 00:12:14,480 Speaker 2: Okay, Daniel, thank you so much for being with us 220 00:12:14,520 --> 00:12:18,000 Speaker 2: this morning, Blueberg opinion columnist Daniel Moss. And yet, of 221 00:12:18,040 --> 00:12:20,960 Speaker 2: course the markets are concerned about this. A lot of 222 00:12:20,960 --> 00:12:24,199 Speaker 2: our opinion writers, including Daniel, have got pieces on the 223 00:12:24,240 --> 00:12:27,959 Speaker 2: Blueberg terminal for you, including John Authors about the worries 224 00:12:28,000 --> 00:12:30,920 Speaker 2: of what it would do immediately to markets werepal. 225 00:12:30,960 --> 00:12:31,880 Speaker 3: To be dismissed. 226 00:12:32,760 --> 00:12:35,520 Speaker 4: Well, the UK's chancer Rachel Reeves is in Washington this 227 00:12:35,559 --> 00:12:39,160 Speaker 4: week for the International Monetary Fund and World Bank Spring meetings. 228 00:12:39,400 --> 00:12:41,960 Speaker 4: She'll be meeting with the US Treasury secretaries, got best 229 00:12:41,960 --> 00:12:45,520 Speaker 4: and to push for a UK US trade deal. Our 230 00:12:45,600 --> 00:12:48,120 Speaker 4: UK correspondent Lizzie Burden is here with us to help 231 00:12:48,240 --> 00:12:51,240 Speaker 4: us look ahead to that. Lizzie, the world is staring 232 00:12:51,280 --> 00:12:54,000 Speaker 4: into a trade war, abyss. The IMF will release its 233 00:12:54,000 --> 00:12:55,680 Speaker 4: new economic forecasts today. 234 00:12:55,720 --> 00:12:56,280 Speaker 3: What should we. 235 00:12:56,240 --> 00:12:59,280 Speaker 1: Expect, Well, it's set to lower its outlook for growth today. 236 00:12:59,360 --> 00:13:03,720 Speaker 1: And remember but the IMF's projections actually later on tend 237 00:13:03,760 --> 00:13:07,080 Speaker 1: to have proved optimistic about crises when you look back. 238 00:13:07,160 --> 00:13:09,839 Speaker 1: So whatever they say today, the is going to be 239 00:13:09,920 --> 00:13:11,960 Speaker 1: the impact of tariffs. The reality is likely to be 240 00:13:12,000 --> 00:13:14,600 Speaker 1: a lot worse. But this, of course is going on 241 00:13:14,760 --> 00:13:17,280 Speaker 1: just a few blocks from the White House, and this 242 00:13:17,440 --> 00:13:21,200 Speaker 1: is the first gathering of all of these ministers in 243 00:13:21,240 --> 00:13:25,520 Speaker 1: the US capital since Donald Trump's inauguration as US President 244 00:13:25,559 --> 00:13:28,640 Speaker 1: in January, so that adds another edge to these discussions. 245 00:13:29,120 --> 00:13:32,320 Speaker 2: What's Reeve's hoping to get from the trip though, in particular, 246 00:13:33,080 --> 00:13:36,360 Speaker 2: there is also the trade deal and the UK's relationship 247 00:13:36,400 --> 00:13:38,760 Speaker 2: with China. Reeves was talking only a few days ago 248 00:13:38,840 --> 00:13:41,280 Speaker 2: about cutting ties with China would be foolish. 249 00:13:41,360 --> 00:13:43,360 Speaker 1: Yeah, if I can thread all those things together. So 250 00:13:43,400 --> 00:13:45,920 Speaker 1: she's going to be lobbying the US Trade Secretary, Treasury 251 00:13:45,920 --> 00:13:48,720 Speaker 1: Secretary Scott best Sent for a trade deal. You had 252 00:13:48,880 --> 00:13:53,000 Speaker 1: Donald Trump and Keir Starmer speaking on Friday. Officials though 253 00:13:53,000 --> 00:13:56,640 Speaker 1: trying to temper expectations about what Reeves can get out 254 00:13:56,640 --> 00:13:58,840 Speaker 1: of best Sent this week. It's really about improving the 255 00:13:58,840 --> 00:14:01,400 Speaker 1: mood music for now. But this is her first time 256 00:14:01,440 --> 00:14:04,760 Speaker 1: meeting him in person. Now he's seen here in London 257 00:14:04,800 --> 00:14:07,000 Speaker 1: as one of the less hard line voices in the 258 00:14:07,000 --> 00:14:11,840 Speaker 1: Trump administration and the focus of ministers and the UK 259 00:14:11,920 --> 00:14:15,960 Speaker 1: ambassador to Washington, Peter Mandelson, Lord Mandelson, is very much 260 00:14:16,000 --> 00:14:18,959 Speaker 1: to persuade Donald Trump to try and cut his twenty 261 00:14:19,000 --> 00:14:22,080 Speaker 1: five percent global tariff on car and steel imports, and 262 00:14:22,120 --> 00:14:25,680 Speaker 1: as you say, also to get a trade deal. Now, 263 00:14:25,800 --> 00:14:28,040 Speaker 1: Reeves's team of stress that the UK is not just 264 00:14:28,080 --> 00:14:30,040 Speaker 1: going to give away anything to get that trade deal 265 00:14:30,080 --> 00:14:31,880 Speaker 1: over the line. They might be prepared to cut the 266 00:14:31,880 --> 00:14:34,880 Speaker 1: Digital services tax, which of course hits US tech companies. 267 00:14:35,160 --> 00:14:39,120 Speaker 1: They may cut tariffs on some US meat and seafood exports, 268 00:14:39,160 --> 00:14:42,960 Speaker 1: but Kirstarmer, the Prime Minister, has ruled out relaxing food 269 00:14:43,000 --> 00:14:45,880 Speaker 1: safety standards because of course there are huge fears about 270 00:14:45,960 --> 00:14:50,000 Speaker 1: chlorinated chicken and hormone hormone fed beef here in the UK. 271 00:14:50,160 --> 00:14:53,400 Speaker 1: It would send the UK newspapers absolutely mad if those 272 00:14:53,440 --> 00:14:57,080 Speaker 1: things gone over the line, and it could jeopardize closer 273 00:14:57,120 --> 00:14:59,600 Speaker 1: ties with the EU. And remember Kirstarmer on May the 274 00:14:59,680 --> 00:15:03,840 Speaker 1: nineteen is hosting this UK EU summit to reset trade 275 00:15:03,840 --> 00:15:07,800 Speaker 1: and security ties post Brexit. Then there's the China element, 276 00:15:07,880 --> 00:15:10,640 Speaker 1: and as you say, Rachel Reeve's telling the Telegraph newspaper 277 00:15:10,640 --> 00:15:13,320 Speaker 1: over the weekend that it'd be foolish to buckle to 278 00:15:13,400 --> 00:15:17,240 Speaker 1: Donald Trump's pressure to limit the UK's dealings with China. 279 00:15:17,400 --> 00:15:20,160 Speaker 1: So a lot of plates to spin for the team 280 00:15:20,200 --> 00:15:21,479 Speaker 1: in Washington this week. 281 00:15:21,560 --> 00:15:23,520 Speaker 4: But perhaps also a chance for Rachel Reeves to get 282 00:15:23,560 --> 00:15:25,400 Speaker 4: away from some of the big fiscal questions that are 283 00:15:25,440 --> 00:15:28,320 Speaker 4: persisting at home. Already speculation over what she might do 284 00:15:28,360 --> 00:15:29,160 Speaker 4: in the next budget. 285 00:15:29,280 --> 00:15:31,160 Speaker 1: Yeah, it has been a theme for this labor government 286 00:15:31,240 --> 00:15:34,400 Speaker 1: to focus on the perhaps easier, could you believe it, 287 00:15:34,520 --> 00:15:36,920 Speaker 1: international picture than what's going on at home. We know 288 00:15:37,000 --> 00:15:41,120 Speaker 1: that she's so fiscally strained, but she has pledged that 289 00:15:41,160 --> 00:15:43,880 Speaker 1: she is not interested in a wealth tax at the 290 00:15:44,080 --> 00:15:48,160 Speaker 1: upcoming autumn budget. She says that the capital gains tax 291 00:15:48,240 --> 00:15:51,040 Speaker 1: changes that they made last autumn are pretty much where 292 00:15:51,080 --> 00:15:53,720 Speaker 1: they need to be. But of course we know that 293 00:15:53,760 --> 00:15:55,960 Speaker 1: she only left the same amount of headroom as she 294 00:15:56,000 --> 00:15:59,360 Speaker 1: did last autumn nine point nine billion pounds, so there's 295 00:15:59,480 --> 00:16:03,520 Speaker 1: lots of splation about tax rises and she's ruled out 296 00:16:03,640 --> 00:16:06,640 Speaker 1: breaking her fiscal rules, so it only leaves spending cuts 297 00:16:06,640 --> 00:16:08,040 Speaker 1: off that her cream vanishes again. 298 00:16:09,120 --> 00:16:11,840 Speaker 4: This is Bloomberg Daybreak Europe, your morning brief on the 299 00:16:11,920 --> 00:16:14,960 Speaker 4: stories making news from London to Wall Street and beyond. 300 00:16:15,240 --> 00:16:19,200 Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify, 301 00:16:19,320 --> 00:16:21,240 Speaker 2: and anywhere else you get your podcasts. 302 00:16:21,320 --> 00:16:24,320 Speaker 4: You can also listen live each morning on London Dab Radio, 303 00:16:24,360 --> 00:16:27,080 Speaker 4: the Bloomberg Business app, and Bloomberg dot Com. 304 00:16:27,120 --> 00:16:29,880 Speaker 2: Our flagship New York station is also available on your 305 00:16:29,920 --> 00:16:34,640 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 306 00:16:34,880 --> 00:16:36,920 Speaker 3: I'm Caroline Hepka and I'm Stephen Carroll. 307 00:16:36,960 --> 00:16:39,320 Speaker 4: Join us again tomorrow morning for all the news you 308 00:16:39,400 --> 00:16:42,040 Speaker 4: need to start your day right here on Bloomberg day 309 00:16:42,080 --> 00:16:46,760 Speaker 4: Break Europe.