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

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Speaker 2: This is the Bloobeg Day baq At podcast, available every

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

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Speaker 2: the twenty fifth of April in London. I'm Caroline Hepca and.

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Speaker 1: I'm Stephen Carroll. Coming up today. British consumer gloom deepens

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Speaker 1: as the Chancellor, Rachel Reeves admits the UK has no

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Speaker 1: space to borrow more amid tariff uncertainty.

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Speaker 2: Bloomberg learns that China may exempt some US goods from tariffs.

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Speaker 2: As the tit for tat trade will realities begin to bite.

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Speaker 1: Plus buying London, UK's capital gets a taste of New

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Speaker 1: York's cutthroat real estate culture as Sotheby's gets aggressive on pay.

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

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Speaker 1: Donald Trump's tariffs, coupled with the surge and domestic bills,

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Speaker 1: have dragged UK household confidence to its lowest level since

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Speaker 1: labor came to power. GfK's Consumer Confidence index fell by

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Speaker 1: four points minus twenty three in April, the weakest reading

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Speaker 1: in nearly a year and a half and worse than

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Speaker 1: economists that expected the prospect that global economic uncertainty could

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Speaker 1: hit UK growth was reinforced by the Bank of England

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Speaker 1: Governor Andrew Bailey at this week's IMF and World Bank

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Speaker 1: Spring meetings. Here's what he told CNBC on Thursday.

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Speaker 3: I see it when I talk to people in the

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Speaker 3: UK economy a lot they are worried about, you know,

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Speaker 3: just the sheer level of uncertainty now in the world economy,

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Speaker 3: the sheer level of uncertainty in policy, and we see

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Speaker 3: it coming through. So we see it coming through in investments.

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Speaker 3: It's quite natural for firms to postpone investment decisions. We

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Speaker 3: see it also coming through with consumers, you know, they

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Speaker 3: are more uncertain.

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Speaker 1: Andrew Bailey, speaking to CNBC, is the Deputy BUE Governor

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Speaker 1: Claire Lambordelli warned the Bank must now assume a future

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Speaker 1: of persistent global shocks for the world economy, requiring greater

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Speaker 1: use of scenarios and rate decisions.

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Speaker 2: UK Charles Lla Rachel Reeves meets with the US Treasury

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Speaker 2: Secretary Scott's Bessent today to discuss trade and economics. The

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Speaker 2: UK wants to see the twenty five percent US tariff

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Speaker 2: on exports of cars, steel, and potentially pharmaceuticals cut the

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Speaker 2: bulk of goods from the UK facing a ten percent

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Speaker 2: tariff into the US. Reeves told economists at the IMF

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Speaker 2: that Britain's high levels of debt means that it can't

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Speaker 2: spend more to drive growth.

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Speaker 4: Countries that have got the space of fiscally should use it.

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Speaker 4: The UK is not one of those countries. Our debt

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Speaker 4: as a share of GDP is around one hundred percent.

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Speaker 4: We've got a set of fiscal rules that say that

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Speaker 4: we need to balance day to day spending with tax

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Speaker 4: receipts and bring debtors as a share of the economy down,

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Speaker 4: subject to that investing in things to grow our economies.

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Speaker 2: Rachel Reeves, speaking there, she also added that the US

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Speaker 2: President Donald Trump is going about fixing the global economy

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Speaker 2: and global trade the wrong way. The Chance also pointed

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Speaker 2: to Britain's relationships with the Pin Union and the Middle

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Speaker 2: East as other priorities. On top of a US trade.

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Speaker 1: Deal, China is considering suspending it's one hundred and twenty

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Speaker 1: five percent tariff on certain US imports as the economic

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Speaker 1: toll of the ongoing trade war begins to bite. Sources

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Speaker 1: tell us that authorities are weighing the removal of additional

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Speaker 1: levies on medical equipment and some industrial chemicals. The development

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Speaker 1: comes as President Trump insists his administration is in trade

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Speaker 1: talks with China, despite Beijing publicly denying any active negotiations

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Speaker 1: and reiterating its demand that the US revoke all unilateral tariffs.

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Speaker 1: Speaking to reporters at the White House, Trump had this

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Speaker 1: to say.

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Speaker 5: Well, they had a meeting this morning, so I can't

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Speaker 5: tell you.

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Speaker 6: It doesn't matter who they is.

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Speaker 5: We may reveal it later, but they had meetings this morning,

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Speaker 5: and we've been meeting with China.

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Speaker 1: The statement followed. That statement followed remarks from China's Commerce Ministry,

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Speaker 1: which had dismissed speculation that any progress had been made

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Speaker 1: in bilateral communications. Meanwhile, China's Central Bank announced it would

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Speaker 1: boost liquidity through one of its policy tools and a

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Speaker 1: bit to shields the world's second largest economy from the

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Speaker 1: strain of punitive US tariffs.

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Speaker 2: US stocks and treasuries jumped yesterday after comments by a

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Speaker 2: Federal Reserve official boosted odds that the Central Bank will

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Speaker 2: cut rates in the coming months. Speaking to Bloomberg, the

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Speaker 2: Fed Governor Christopher Waller, said that firms may begin laying

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Speaker 2: off more US workers if aggressive tariff levels are reinstated

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Speaker 2: by the Trump administration. He said that he would support

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Speaker 2: rate cuts if there's a significant rise in unemployment.

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Speaker 6: See, I'm willing to look through whatever and terror price

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Speaker 6: effects there are, and I've said that, so for me,

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Speaker 6: then I'm not going to overreact to any increase in

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Speaker 6: inflation that I think is attributable to the tariffs. But

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Speaker 6: if I see a significant drop in the labor market,

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Speaker 6: then the employment side of the mandate I think is

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Speaker 6: important and we step in and we would have to start.

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Speaker 6: I said this last week in my speech. You know,

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Speaker 6: I would expect more rate council sooner once I started

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Speaker 6: seeing some serious deterioration labor market.

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Speaker 2: Christopher Waller speaking there, the Cleveland FED President Beth Hammock,

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Speaker 2: who was even stronger in her view. Speaking to CNBC,

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Speaker 2: she said that the Fed could move in June, quote

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Speaker 2: if we have clear and convincing data by then and

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Speaker 2: know which way is the right way to move at

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Speaker 2: that point in time.

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Speaker 1: Google's parent company, Alphabet has reported first quarter revenue and

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Speaker 1: profit that exceeded analyst expectations. The numbers are void by

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Speaker 1: continued strength and its search advertising business. First quarter sales

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Speaker 1: excluding partner payouts were seventy six point five billion dollars.

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Speaker 1: That's more than a billion more than what had been

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Speaker 1: expected by analysts. Man Deep, saying global had of technology

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Speaker 1: research at Bloomberg Intelligence, says new developments at the firm

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Speaker 1: haven't hindered growth.

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Speaker 5: Google Services revenue was a slight bead, but what was

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Speaker 5: really impressive was the margin bead on the Google Services.

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Speaker 5: A lot of it is because everyone told because they're

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Speaker 5: adding AI overviews, that's going to hurt the margins or search. Oh,

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Speaker 5: it didn't happen.

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Speaker 1: Man Deep, saying from Bloomberg Intelligence, there Alphabet's net income

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Speaker 1: came in at two dollars eighty one per share, eighty

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Speaker 1: cents higher than consensus estimates.

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Speaker 2: The United States will demand that Russia accept Ukraine's right

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Speaker 2: to develop its army as part of a peace agreement.

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Speaker 2: To Bloomberg, understands that the White House will push back

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Speaker 2: on the Kremlins call for Kiev's demilitarization as a condition

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Speaker 2: for peace. Russian Fie Minister Sergei Lavro said that Trump

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Speaker 2: had provided strong support to date.

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Speaker 7: President Trump is probably the only leader on Earth who

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Speaker 7: recognized they need to address the root causes of this

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Speaker 7: situation when he said said that it was a huge

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Speaker 7: mistake to pull Ukraine in Tornado, and this was a

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Speaker 7: mistake by by the administration and he wants to reptify this.

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Speaker 2: That was the Russian Feign Minister Sergei Lavro speaking exclusive

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Speaker 2: to CBS's face. The nation Russia has continued to bomb

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Speaker 2: Ukrainian cities even as talks have continued, and as it

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Speaker 2: has insisted that it's prepared for peace. Moscow launched the

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Speaker 2: biggest air strike of the year this week, targeting Kiev

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Speaker 2: and killing at least twelve people.

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Speaker 1: Those are your top stories on the markets. The SMB

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Speaker 1: five hundred on Wall Street selling for its second best

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Speaker 1: week of the year after rising by two percent yesterday.

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Speaker 1: We've got futures heading another half a percent higher this morning.

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Speaker 1: Some optimism in Asian equity markets too, after that report

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Speaker 1: that China is considering lifting some of the tariffs on

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Speaker 1: US imports. The Mscish Pacific Index seven tents higher, the

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Speaker 1: hansng and Hong Kong's up by one point four percent

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Speaker 1: as well, the dollars strengthening three tenths of one percent

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Speaker 1: of mid risk on sentiment. So we're seeing the Japanese

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Speaker 1: en seven tenths week this morning at one hundred and

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Speaker 1: forty three sixty six. European stock features are pointing to

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Speaker 1: a boost at the open today as well, up half

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Speaker 1: of one percent for eurostocks fifty and the euros four

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Speaker 1: tenths week, or at one third teen forty against the dollar.

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Speaker 2: Now, in a moment, we will bring you more on

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Speaker 2: what to expect from Rachel Reeves's meeting with Scott Bessett

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Speaker 2: later today, and also how bigger pay packets are parently

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Speaker 2: sparking a talent war among London's estate agents. We'll get

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Speaker 2: to that in just a moment before we.

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Speaker 1: Get into the detailed though of what the Chancellor said.

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Speaker 1: I was struck by a question that she was asked

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Speaker 1: during an event at the IMF Spring meetings in Washington,

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Speaker 1: Perhaps a much trickier question than any of the economic ones.

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Speaker 1: So Rachel Reeves was asked what her favorite film was

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Speaker 1: and how it was emblematic of her economic policy. Take

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Speaker 1: a listen to her answer.

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Speaker 4: I've got two young children, so I only ever really

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Speaker 4: go and see children's films these days. So Paddington, Wicked,

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Speaker 4: Harry Potter movies is the sort of genre I'm not

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Speaker 4: sure it's my choice, but that is.

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Speaker 5: What I do.

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Speaker 1: So that was the Chancellor's answer. I thought that was

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Speaker 1: pretty reasonable as asking.

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Speaker 2: A really busy person who's got a massive job whether

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Speaker 2: they've got any spare time to watch films. She did

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Speaker 2: quite well.

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Speaker 1: I mean, look, I hate being putting this part of

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Speaker 1: that because like people judge you based on when you

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Speaker 1: have to pick acid perlative of what is your favorite.

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Speaker 1: Although I think had Rachel Reeves thought about it, she

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Speaker 1: probably wouldn't want to be drawing parallels to the likes

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Speaker 1: of Wicked, you know, which which does she identify with more?

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Speaker 4: Well?

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Speaker 2: The Paddington things, of course brings up that issue of,

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Speaker 2: you know, whether she's giving the Americans a hard stare

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Speaker 2: when it comes.

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Speaker 1: To the Mari late samag just for all.

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Speaker 2: Yeah, exactly.

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Speaker 1: Potentially that was one of the parts of that discussion

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Speaker 1: that stood out to us this morning. But let's get

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Speaker 1: into I suppose the meat of what Rachel Reeves was discussing.

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Speaker 1: She's meeting her American counterpart, Scott bess And in Washington

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Speaker 1: later hoping for progress on trade talks that might lead

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Speaker 1: to a deal that could perhaps limit the impact of

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Speaker 1: some of those tariffs. She's already said that Donald Trump's

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Speaker 1: going about addressing trade and balances the wrong way and

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Speaker 1: warned the UK doesn't have space to borrow more. Our

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Speaker 1: UK politics supporter James Wilcock is with us for more.

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Speaker 1: James Racher Reeves has talked a lot in Washington this

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Speaker 1: week about trade. Do we have a clear idea of

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Speaker 1: what her position is going to be going into this

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Speaker 1: meeting with.

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Speaker 3: Yes, we do.

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Speaker 8: And it's quite remarkable actually, because I'm used to a

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Speaker 8: sort of diet of Oh, I couldn't possibly comment on

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Speaker 8: ongoing negotiations, but her position is free trader is good,

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Speaker 8: tariffs are bad. The UK is happy to lower its

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Speaker 8: tariffs on cars coming from the US, but it would

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Speaker 8: like global twenty five percent tariffs on cars and drugs

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Speaker 8: removed on it. In turn, it's not going to budge

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Speaker 8: on food and tech safety standards. And she's not in

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Speaker 8: a rush to do a deal now. She has said

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Speaker 8: that in multiple media outlets, in multiple places and across

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Speaker 8: the sort of breadth of US political sort of life.

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Speaker 8: The one caveat I would add is in the UK.

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Speaker 8: Polling suggests that Donald Trump is incredibly unpopular amongst sprits,

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Speaker 8: and a recent poll by Yugov suggested that only fourteen

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Speaker 8: percent of Brits would react to TARIS by seeking closer

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Speaker 8: trade deals to the US. So part of Rachel Reeves's

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Speaker 8: job is not just to be the chance who manages

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Speaker 8: the finances, but also one of the most second most

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Speaker 8: senior partition in labor government. Some of this is also

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Speaker 8: posturing about the UK not being seen to be sort

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Speaker 8: of cow towing to the US too, which is why

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Speaker 8: this meeting with Bestn't, her counterpart in the US to

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Speaker 8: Treasury Security, is so important because it's the first time

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Speaker 8: they'll have met person to person to actually talk behind

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Speaker 8: closed doors about what actually might be being compromised on.

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Speaker 2: Yes, because the other question, you know, for the UK,

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Speaker 2: the other issue for the UK is actually Rachel Reeves

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Speaker 2: admitting the very difficult fiscal picture of fiscal challenges that

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Speaker 2: the UK has. She was also quite clear about that.

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Speaker 8: I mean, I was struck by your chat about films

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Speaker 8: because I think there's no magic coming down the track.

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Speaker 8: There's no magic money tree and there's no magic from

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Speaker 8: Wicked either. There is a real awareness of how difficult

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Speaker 8: the situation is and the name that kept coming out

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Speaker 8: of rich L Reeves was Germany. Germany. Germany Germany because

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Speaker 8: Germany has a debt to GDP ratio of forty percent

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Speaker 8: versus the UK is one hundred percent and that gives

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Speaker 8: it far more fiscal space, and she's very aware of that.

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Speaker 8: There was something new though in what she was saying

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Speaker 8: in her role as sort of the Iron Chancellor. It's

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Speaker 8: quite rare to hear Rachel Reeves say that more spending

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Speaker 8: is good. And yet in the IMF meeting she said

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Speaker 8: that governments should be spending more, the implication being if

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Speaker 8: she had fiscal space, and she directly said this, she

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Speaker 8: theoretically could be spending more. However, she sees herself as

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Speaker 8: tied into the UK's very in debt situation. But I

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Speaker 8: think that gives you a bit of a hint about

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Speaker 8: what her actual ideology and instincts are, but also how

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Speaker 8: she sees herself as tied into the UK's restraints.

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Speaker 1: Okay, James Wilcock are UKA politic supporter.

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Speaker 2: Thank you now to the London property market and a

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Speaker 2: shakeup among the city's estate agency. Southerby's is using new

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Speaker 2: pay tactics to attract top talent from rivals. Our residential

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Speaker 2: real estate reporter Damian Shepherd joins us now for more. Damian,

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Speaker 2: good morning. What is Southerbe's doing differently to London's traditional

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Speaker 2: property agents, I mean people like Knight, Frank and Saviles.

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Speaker 3: Yeah.

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Speaker 9: One of the things that really surprised me when I

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Speaker 9: started immersing myself in this world is that London's traditional

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Speaker 9: property agents, when one of their sales agents works on

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Speaker 9: an eighty million pound ninety million pound deal, they don't

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Speaker 9: actually give them commission on that sale. So the traditional

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Speaker 9: model has been to earn a salary and a bonus

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Speaker 9: at the end of the year that reflects your performance

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Speaker 9: and the team's performance. So income. Southerby's a couple of

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Speaker 9: years ago with their New York eat what you Kill

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Speaker 9: style brokerage model, and they are making a serious mark.

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Speaker 9: They have no geographical restrictions on where their brokers can

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Speaker 9: do business, so they're kind of rubbing shoulders in London's

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Speaker 9: exclusive districts, almost battling against each other to try and

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Speaker 9: secure these deals. And we've seen a massive amount of

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Speaker 9: poaching going on. A fifth of the breakers they've employed,

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Speaker 9: the fifty three breakers they've employed since so inception a

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Speaker 9: couple of years ago have come from Night Frank. So

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Speaker 9: we're seeing a real shift in how things are done

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Speaker 9: at the top end of the London market.

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Speaker 1: How much has market conditions got to do with this though?

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Speaker 1: This poaching of talent by Sotherby's oh big time.

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Speaker 9: I mean, I've come on here several times, Stephen and

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Speaker 9: spoken about how the market has been weak over the

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Speaker 9: past few years. Transactions are down, there's massive discounts needed

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Speaker 9: to secure deals at the top end of the market.

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Speaker 9: That's all down to tax changes, interest rates being higher.

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Speaker 9: And if we put ourselves in the shoes of an

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Speaker 9: agent at these traditional breakers at night Frank and saviles,

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Speaker 9: who've typically relied on the overall performance of the team

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Speaker 9: at time when transactions are down, a lot of them

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Speaker 9: have been tempted to move over to Southby's, where they're

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Speaker 9: offering the massive minimum pay guarantees of up to one

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Speaker 9: pounds for their first year at the company, and it's

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Speaker 9: just giving them an incentive to move across and know that,

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Speaker 9: you know, if they're working to the point where they're

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Speaker 9: getting a few deals, they're going to have a direct

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Speaker 9: flow of commission to their bank accounts from that. So yeah,

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Speaker 9: that's what we're seeing a massive shift in how things

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Speaker 9: are running.

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Speaker 2: Who from tempted to whistle at a million pound possible paypacket.

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Speaker 7: Wow.

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Speaker 2: In terms of the old school agents, then what are

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Speaker 2: they doing to try to protect themselves I suppose? And

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Speaker 2: what does it also mean for people who are buying

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Speaker 2: and selling homes in London?

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Speaker 6: Yes?

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Speaker 9: So, I mean the newest angle in our story is

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Speaker 9: that Knight frank has actually started offering the option of

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Speaker 9: commission to their sales agents and that's breaking centuries long

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Speaker 9: sort of pay methods from these traditional agents. Now that

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Speaker 9: you know, my sources telling me that is in direct

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Speaker 9: response to what Southerbees are doing. But ultimately these traditional

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Speaker 9: brokers will just be hoping for the market to bounce back.

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Speaker 9: You know, there's lots of positive talk about what Southerbees

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Speaker 9: have done, but the true test will be when these

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Speaker 9: transactions start booming again, when the values start rising again.

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Speaker 9: Will these brokers that have made the move to Southeby's

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Speaker 9: start knocking on their old manager's doors and want to

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Speaker 9: go back to these more established breakers who have a

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Speaker 9: bit more of a reputation in the industry.

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