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

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Speaker 2: They say is the Bloomberg Daybreak Europe podcast. Good morning,

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Speaker 2: It's Friday, the fifteenth of August. I'm Stephen Carroll in London.

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Speaker 2: Coming up today, Donald Trump and Vladimir Putin head to

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Speaker 2: Alaska for face to face talks on Ukraine. As nervous

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Speaker 2: European leaders watch on tax rises, wage costs, and week

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Speaker 2: spending mean London is bearing the brunt of the UK's

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Speaker 2: jobs slow down. Plus keeping football transfers on side, Apollo

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Speaker 2: and Blackstone look to score big with private debt financed

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Speaker 2: player acquisitions in a five billion euro market. Let's start

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Speaker 2: with a roundup of our top stories. Russia's President Vladimir

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Speaker 2: Putin has sought to strengthen his relationship with Donald Trump

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Speaker 2: ahead of their summit today in Alaska. At a Kremlin

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Speaker 2: meeting with senior officials, Putin praised the US President's efforts

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Speaker 2: to broker an end to the war in Ukraine and

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Speaker 2: dangling the promise of economic cooperation. President Trump, meanwhile, has

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Speaker 2: described the talks and Anchorage as a feel out meeting.

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Speaker 2: Here's what he told reporters of the White House. President

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Speaker 2: Putin would like to see a deal.

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Speaker 3: I think if I weren't president, he would take over

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Speaker 3: all of Ukraine.

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Speaker 4: In my opinion, he would much rather take over all

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Speaker 4: of Ukraine.

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Speaker 2: But I am president and he's not going to mess.

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Speaker 3: Around with me.

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Speaker 2: Trump later suggested that some Allied countries could participate in

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Speaker 2: a second meeting, and that it may also take place

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Speaker 2: in Alaska. Will a full coverage of today's meeting between

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Speaker 2: Trump and Putin, as well as an expected joint press

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Speaker 2: conference following the summit on Bloomberg Radio. China's economy slowed

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Speaker 2: across the board in July, suggesting the disruption from tariffs

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Speaker 2: is beginning to ripple through the wider economy. Factory investment,

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Speaker 2: factory activity, investment, and retail sales all fell below forecasts,

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Speaker 2: in what one economist called an evident loss of momentum.

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Speaker 2: Speaking via translator, the chief economist at China's National Bureau,

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Speaker 2: Oft fooling Way, says both trade and extreme weather had

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Speaker 2: a serious impact on the economy in July.

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Speaker 4: The international environment was complex and grave, the impact of

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Speaker 4: trade protectionism and iniletrialism ingod Some regions in sun Chin

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Speaker 4: experienced extreme weather events such as heat waves, heavy rain,

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Speaker 4: and flooding. Causing short term effect on the economy.

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Speaker 2: Chief economists foo out of the exports to the EU

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Speaker 2: Europe by eight percent as China diversifies its trade away

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Speaker 2: from the United States. Both The slowdown has raised questions

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Speaker 2: about weather Beijing made a side on further fiscal stimulus.

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Speaker 2: Shares an Intel rose sharply after it was revealed the

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Speaker 2: Trump administration is considering taking a stake in the company.

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Speaker 2: Bloomberg has learned the plan stem from a meeting this

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Speaker 2: week between President Trump and Intel CEO Bhutan. Who's Tom Giles,

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Speaker 2: our executive editor for Tech.

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Speaker 5: This is really early days, but it would be a

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Speaker 5: pretty momentous event and development in terms of, you know,

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Speaker 5: the new ways that the Trump administration is inserting itself

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Speaker 5: into US US industries. We saw with the steel industry

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Speaker 5: previously and now with Chit.

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Speaker 2: Bloombergs Tom Giles and San Francisco. Intel didn't comment on

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Speaker 2: the report, but says it's committed to supporting President Trump's

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Speaker 2: efforts to strengthen US technology and manufacturing leadership. Shares finished

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Speaker 2: over seven percent higher on Wall Street and rows another

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Speaker 2: four percent in the after hours session. One in four

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Speaker 2: job losses in the UK have come from London since

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Speaker 2: last year's budget, Britain's capital is bearing the brunt of

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Speaker 2: the labor market slow down. Bloombergs James Wilcock has the story.

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Speaker 6: The rent is higher, the business rates are higher, and

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Speaker 6: staff demand more money. That's Business Group UK Hospitalities view

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Speaker 6: on why London, the UK's most productive city, is shedding

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Speaker 6: jobs well above the national average rates well. The UK

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Speaker 6: GDP growth for the first half of the year is

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Speaker 6: the highest in the G seven. Economists are saying that

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Speaker 6: is being driven by public sector spending at least private

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Speaker 6: sector hubs like London taking a bigger hit as businesses

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Speaker 6: cut back in London, James Wilcock Bloomberg.

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Speaker 2: Radio, US and Canadian banks are summoning staff back to

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Speaker 2: the office at a faster rate than their European rivals.

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Speaker 2: Bloomberg analysis shows just seven of Europe's fifteen most valuable

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Speaker 2: lenders have asked some or all employees to work four

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Speaker 2: days or more from the office per week. That's compared

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Speaker 2: to eleven of the fifteen biggest North American firms who've

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Speaker 2: made the same request. The news comes amidst a widening

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Speaker 2: debate over the topics, as industry leaders such as Bill

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Speaker 2: Winters and Jamie Diamond exhibit opposing views on the future

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Speaker 2: of work, turning next to the fierce battle among Europe's

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Speaker 2: top flight of football, sparking a private debt boom. The

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Speaker 2: phenomenon has even attracted some of the sector's biggest names.

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Speaker 2: Bloomberg's Tea Atabio has the story.

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Speaker 7: With just a two weeks left of football summer transfer window,

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Speaker 7: competition for top players is heating up. Ballooning fees regularly

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Speaker 7: topping one hundred million dollars for a single player have

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Speaker 7: peaked the interest of some of Europe's biggest private lenders,

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Speaker 7: hoping to get a slice of the action. Bloomberg understands

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Speaker 7: names including Apollo and Blackstone, who declined to comment on

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Speaker 7: the matter, helping to ignite a debt market within the sport,

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Speaker 7: using transfer fees as collateral. Traditionally the preserve of specialized lenders,

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Speaker 7: this summer's five billion euro player spending bill has attracted

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Speaker 7: high value firms hoping to strike big. The changing fortunes

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Speaker 7: of clubs who face victory or relegation every season mean

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Speaker 7: traditional banks aren't very active in the football world, leaving

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Speaker 7: an open goal for private lenders to score in London,

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Speaker 7: Tima at a Baio Bloomberg Radio.

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Speaker 2: Those are your top stories on the markets. The msci

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Speaker 2: AS Pacific Index down by excuse me, up by half

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Speaker 2: of one percent. European stock futures are higher by half

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Speaker 2: of one percent as well this morning, as we're looking

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Speaker 2: at the Bloomberg Dollar spot Index a tenth week er,

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Speaker 2: the Japanese yen strengthening further against the US dollar by

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Speaker 2: four tenths of one percent, the ten year treasury yield

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Speaker 2: at four point two seven percent. In a moment, we'll

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Speaker 2: bring you more and what to expect from today's meeting

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Speaker 2: between the US and Russian presidents, plus why London has

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Speaker 2: been worst hit by the slowdown in the UK jobs market.

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Speaker 2: But another story that caught her eye this morning. Does

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Speaker 2: your accessory need its own accessory? Well, that's what luxury

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Speaker 2: firms are hoping anyway now. Mica Barkley has been writing

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Speaker 2: about this trend of bag charms, the best example of

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Speaker 2: which is perhaps the lea booboo dolls, which you may

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Speaker 2: be spotting on handbags and backpacks around where you live.

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Speaker 2: She writes, if the big luxury names are keen to

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Speaker 2: get in on this trend, though, because if consumers can't

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Speaker 2: be convinced to buy a bit a new bag, which

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Speaker 2: might be a much bigger purchase, they could perhaps be

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Speaker 2: tempted into the purchase of smaller items like a branded charm.

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Speaker 2: This is coming off period we've had some of the

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Speaker 2: big luxury names like LVMH and Caring reporting underperforming fashion

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Speaker 2: and luxury goods businesses. The CEO of Coach said this

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Speaker 2: week that the brand was killing it with bag charms.

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Speaker 4: No.

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Speaker 2: Bloomberg Intelligence says that ultimately these will only make up

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Speaker 2: a very small portion of sales for these premium fashion labels,

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Speaker 2: but it could just be enough to keep consumers and

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Speaker 2: brands connected if consumers are maybe feeling a little bit

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Speaker 2: squeezed and don't have the money to splash out on

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Speaker 2: bigger items as well. Can we call this a charm?

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Speaker 2: Offensive answers on a postcard. You can read the full

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Speaker 2: story on Bloomberg dot com and on the terminal. We'll

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Speaker 2: put a link to the story in our podcast show notes.

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Speaker 2: Let's bring you more now what to expect from Donald

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Speaker 2: Trump's meeting with Vladimir Putin. Our news desk editor Jill

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Speaker 2: Desis joins us Now for more. Jill We've been reporting

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Speaker 2: on these comments from Vladimir Putin praising Donald Trump ahead

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Speaker 2: of this meeting. What should we read into those comments?

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Speaker 1: Good morning, Stephen Well. I think, as many world leaders

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Speaker 1: have really found over this period of time where Trump's

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Speaker 1: returned to office, flattered flattery does seem to get you

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Speaker 1: quite a lot of places with Donald Trump. It does

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Speaker 1: feel a bit like Putin is going into this meeting.

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Speaker 1: First of all, it's on US soil, it marks his

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Speaker 1: return to the United States for the first time in

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Speaker 1: about a decade. Does seem like he's fairly confident about

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Speaker 1: his position within the Russia's war in Ukraine. And now

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Speaker 1: this is something where it's kind of feels like Putin

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Speaker 1: is trying to broaden out the purposes of this meeting

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Speaker 1: a bit. I mean, you know, if you're Putin, you're

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Speaker 1: going into this meeting looking at the way that US

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Speaker 1: Russia relations have really evolved over the last several years,

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Speaker 1: obviously worsening significantly. Maybe this is an opportunity for a

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Speaker 1: bit of a reset. You've got, you know, the possibility

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Speaker 1: that you know, Putin could try to bring up the

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Speaker 1: potential foreign arms deal. That's something that he had tried

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Speaker 1: to press Trump on during his first term as president.

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Speaker 1: You know, maybe that's something that makes a return. You know,

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Speaker 1: we see Putin kind of highlighting this idea of or

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Speaker 1: the economic cooperation between the US and Russia. So at

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Speaker 1: least if you're Russia, if you're Putin in this particular case,

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Speaker 1: you know, it does seem like maybe there's an opportunity

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Speaker 1: here to turn this into more about a meeting that's

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Speaker 1: about the US Russia relationship, rather than focusing solely on

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Speaker 1: the idea of what's happening in Ukraine.

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Speaker 2: Meanwhile, for Donald Trump, he's been dialing back expectations about

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Speaker 2: what could come from these talks, what would success look

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Speaker 2: like for him.

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Speaker 1: Yes, he really has, and it does seem like, you know,

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Speaker 1: it's really Trump going into this meeting. You know, that

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Speaker 1: carries a little bit more of a risk. He's describing

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Speaker 1: this as really a feeling out meeting. He said that

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Speaker 1: he foresaw a twenty five percent chance that this would

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Speaker 1: not be successful. So yes, you really do see Trump

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Speaker 1: kind of dialing back expectations here. I mean, if you're

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Speaker 1: Donald Trump, you know, you just came out of talks

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Speaker 1: with the you and with Ukraine. You know where they're

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Speaker 1: you know, really really pushing for no kind of you know,

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Speaker 1: territorial concessions or anything like that to be agreed to

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Speaker 1: or anything like that in this type call. I mean,

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Speaker 1: I think, you know, for the United States pushing this

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Speaker 1: further in terms of you know, coming out of this

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Speaker 1: kind of controlling the narrative furthering you know, another meeting

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Speaker 1: maybe between Trump, Zelenski and Putin might look like a

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Speaker 1: victory there, but it is it is a bit of

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Speaker 1: a risky time here.

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Speaker 2: Ukraine meanwhile, of course not represented at this meeting. How

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Speaker 2: much of a concern is that for Kiev and European

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Speaker 2: leaders who are watching on from a distance.

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Speaker 1: Well, I think, Stevehn, just the fact that you did

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Speaker 1: have you know, this pre meeting between Trump and then

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Speaker 1: those European leaders and Zelenski, you know, just sort of

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Speaker 1: setting this up, I think, does kind of show that

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Speaker 1: clearly there's there's quite a bit of concern about what

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Speaker 1: may be said or not during this meeting. I mean, again,

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Speaker 1: you know, Zelensky has made very clear he does not

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Speaker 1: want to see the eastern DNBIS region to Russia as

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Speaker 1: part of any cease fire deal. But again, you know,

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Speaker 1: Putin obviously going into its meeting kind of feeling, you know,

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Speaker 1: like Russia's is perhaps winning the war in Ukraine at

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Speaker 1: this point. I mean, yes, I think, you know, any

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Speaker 1: concerns that Trump may you know, bring up anything like that,

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Speaker 1: I think you know, would be of concern with Zelensky

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Speaker 1: because he's not actually physically in the room, you know,

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Speaker 1: with these two leaders. But you know, again, we'll have

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Speaker 1: to see what ultimately, you know, Trump and Putin kind

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Speaker 1: of come out of with this meeting and how exactly

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Speaker 1: you know that could potentially pave the way for further

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Speaker 1: meetings ahead.

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Speaker 2: Chris's meeting is taking place just outside of Anchorage in

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Speaker 2: a military base there, and we've done some great reporting

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Speaker 2: about how this influx of the Secret Service into this

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Speaker 2: city has really upended how things are running there. Just

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Speaker 2: talk us through how this meeting is playing out in

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Speaker 2: the preparations for it in the city.

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Speaker 1: Yes, this is super fascinating because you know, Anchorage otherwise

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Speaker 1: obviously you know, a fairly you know, medium sized town

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Speaker 1: as far as or city as far as United States

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Speaker 1: cities go. But I mean, this is obviously such a

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Speaker 1: massive event because you you have to imagine there are

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Speaker 1: hundreds of reinforcements coming into the sound, you know, the

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Speaker 1: idea of people we spoke to saying it's basically body

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Speaker 1: for body, gun for gun. When it comes to the

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Speaker 1: Americans versus the Russians in terms of how they're actually

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Speaker 1: setting up, we spoke to you know, some uh, you know,

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Speaker 1: people who are running short term rentals at this time

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Speaker 1: of year. It's normally tourists that they would be housing

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Speaker 1: at this point. You know, who are you want to

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Speaker 1: go see glaciers or maybe there's business travelers. Now you know,

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Speaker 1: those same you know sort of hotels and such are

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Speaker 1: fielding calls from secret service agents. They're fielding calls from

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Speaker 1: the Russian consulate trying to get you know, as many

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Speaker 1: people as possible. And and you also have to imagine that,

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Speaker 1: you know, there's a limit in terms of how many

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Speaker 1: you know, say, you know, cars you can actually bring in.

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Speaker 1: I mean, you know, we've been reporting that in terms

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Speaker 1: of motor cade. You know, the US is actually flying

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Speaker 1: up motorcades from the lower forty eight states in order

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Speaker 1: to make this happen. So it's clearly a massive undertaking

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Speaker 1: that you know, on both the side of the US

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Speaker 1: and on on Russia to try to bring everybody together

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Speaker 1: and ultimately make this meeting happen.

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Speaker 2: Jail JSAs our news desk Gduer thank you very much

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Speaker 2: for talking us through all of the operations for that meeting,

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Speaker 2: and of course full coverage on Bloomberg as it happens now.

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Speaker 2: London is bearing the brunt of the UK's jobs slowed down,

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Speaker 2: as a combination of tax rises, higher wage costs and

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Speaker 2: weak consumer spending forced the city's businesses to cut payrolls

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Speaker 2: faster than in the rest of the country. That's according

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Speaker 2: to the latest economic data published this week and our

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Speaker 2: UK Economy Reporter Arena and gel joins me now for

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Speaker 2: more are in a good morning, how many jobs then

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Speaker 2: have been lost in London and which sectors are worst affected?

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Speaker 3: Morning Stephen, So, London has lost almost forty five thousand

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Speaker 3: jobs since the October budget and that's of course when

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Speaker 3: Labor announced the twenty six billion increase in employers' National

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Speaker 3: insurance and the new hire minimum wage. To put things

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Speaker 3: into perspective, this means that one in four of all

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Speaker 3: job losses across the country over that period happened in

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Speaker 3: the capital and the losses are really concentrated in four sectors,

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Speaker 3: all of which have a large share of their stuff

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Speaker 3: in London. So first we have retail and hospitality. Remember

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Speaker 3: these ones employ a lot of workers and a lot

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Speaker 3: of low paid workers, so they were the most affected

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Speaker 3: by labor changes. But also we had white collar parts

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Speaker 3: of the economy like it and communications and the professional,

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Speaker 3: technical and scientific sector.

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Speaker 2: So why is it that London's being worse affected than

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Speaker 2: other parts of the country Because it's disproportionate the lasses

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Speaker 2: versus London's impact as whereas London's proportion to the population

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Speaker 2: of the UK.

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Speaker 3: That's right, it's actually three reasons. So first, employing people

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Speaker 3: in London is very expensive. If you're an employer trying

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Speaker 3: to trim expenses after being hit with higher taxes, London

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Speaker 3: is the obvious place to cut costs from. Then, Secondly,

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Speaker 3: retail's hospitality businesses face higher costs across the board in London,

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Speaker 3: so it's not just wages but also rents, business rates,

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Speaker 3: et cetera. And that's at the same time as households

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Speaker 3: remain cautious to spend in bars and restaurants, so there's

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Speaker 3: just not money, not enough money coming in to pay

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Speaker 3: for these higher costs in the capital. And finally, London

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Speaker 3: is a hot spot for it tea, management consultancies or

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Speaker 3: communications companies. And while these sectors are less affected by

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Speaker 3: the NI increase, they're facing very strong global headwinds. So

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Speaker 3: you know, some are still freezing recruitment after they overexpanded

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Speaker 3: after COVID and also as they face a more uncertain world.

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Speaker 3: And for others, actually AI is also impacting hiring. We

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Speaker 3: see the first sigence that the technology is replacing some

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Speaker 3: jobs in finance, marketing and management consulting, and oftentimes these

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Speaker 3: are jobs in London.

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Speaker 2: And just briefly in from here are things that to

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Speaker 2: get better or worse.

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Speaker 3: Well, it's not looking good, Steven Retailers told me there's

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Speaker 3: more job losses to come. We have the new autumn

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Speaker 3: budget coming up with new speculation of tax rises and

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Speaker 3: that's further hitting consumer spending. It's a repeat of last year.

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Speaker 3: And on a more micro level, we know now that

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Speaker 3: the economy is basically being propped up by the government

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Speaker 3: by government spending and this could be benefiting areas of

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Speaker 3: the country. They rely more on the public sector than

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Speaker 3: London does, so it could end up seeing away jobs

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Speaker 3: from London even more.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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