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

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Speaker 2: This is the Bloomberg Daybreak euro podcast. Good morning, It's Friday,

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Speaker 2: the twenty fourth of July. I'm Stephen Carroll in London.

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Speaker 2: Coming up today, tariffs are back. Trumpets more than eighty

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Speaker 2: countries with new levies of at least ten percent. Magnificent

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Speaker 2: seven stocks lose almost eight hundred billion dollars in a

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Speaker 2: single day as AI skeptics dump big tech shares. Plus

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Speaker 2: one of the trickiest balancing acts in banking, Barkley's trading

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Speaker 2: boss hunts for growth in the shadow of US rivals.

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Speaker 3: Let's start with a round up of our top stories.

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Speaker 2: The United States has announced new tariffs of at least

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Speaker 2: ten percent on imports from most major trading partners. It's

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Speaker 2: President Donald Trump's biggest move yet to rebuild his global

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Speaker 2: levies after the Supreme Court struck down his earlier charges.

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Speaker 2: The new tariffs follow a US investigation that accused more

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Speaker 2: than eighty countries of failing to prevent God's made with

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Speaker 2: forced labor from entering their supply chains. Who's the US

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Speaker 2: trade representative Jemison Greer speaking to CNN.

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Speaker 4: Finally, we have put our foot down and we have

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Speaker 4: told the countries you need to take action. You need

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Speaker 4: to prohibit the import of goods made with forced labor,

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Speaker 4: and you need to enforce these laws so we all

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Speaker 4: have a level playing field. And so we're taking action

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Speaker 4: to do that. And if countries are on the right path,

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Speaker 4: they have a certain level of tariff about ten percent,

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Speaker 4: and so not on the right path, it's a slightly

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Speaker 4: higher tariff of twelve and a half percent.

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Speaker 2: Jefferson Career speaking there to CNN. The neat tariff's take

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Speaker 2: effects today as the Trump administration replaces its temporary worldwide

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Speaker 2: import duties with the new system based on countries records

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Speaker 2: on forced labor. Those judged have stronger safeguards, including the UK,

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Speaker 2: the European Union, Canada, and India will face the lower

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Speaker 2: ten percent rate, well dozens of others will pay twelve

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Speaker 2: and a half percent. In the United States, the Max

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Speaker 2: seven technology giants sufferre their biggest one day drop since

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Speaker 2: April of last year, wiping out almost eight hundred billion

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Speaker 2: dollars in market value earnings from Alphabet and Tesla's boot traders,

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Speaker 2: and made a growing concern over big tech's massive spending

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Speaker 2: and artificial intelligence. However, Intel emerged as a beneficiary of

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Speaker 2: the boom and AI data center is delivering a revenue

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Speaker 2: forecast that shattered estimates. The chip maker now expects sales

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Speaker 2: of between fifteen point eight to sixteen point eight billion

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Speaker 2: dollars in the third quarter.

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Speaker 3: Here's Bimberg TeX's Ed Ludlow.

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Speaker 5: The market is a situation where CPU specifically is taking

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Speaker 5: off the Intel. A lot of their top line performance

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Speaker 5: is answered by that. And in the quarter gone, you know,

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Speaker 5: that unit's growing fifty nine percent, double what the rest

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Speaker 5: of the business is growing at. So they have found

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Speaker 5: their place in that market. But what they're battling to

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Speaker 5: do is improve their own operations, their own foundries, and

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Speaker 5: their own processes so they can get the CPU product

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Speaker 5: that people actually want out.

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Speaker 3: There into the real world, remembers Ed Ludlow.

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Speaker 2: They're echoing the comments of Intel CEO Lip Bhutan, who

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Speaker 2: said that demand is outpacing supply. President Trump has threatens

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Speaker 2: to intensify attacks on Iran following a thirteenth consecutive night

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Speaker 2: of US strikes. He teld Axios he's close to making

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Speaker 2: a decision on what he described as a massive attack.

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Speaker 2: In a social media post to the US President said

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Speaker 2: he would hold around responsible for any further attacks by

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Speaker 2: Huthy militants on ships in the Red Sea game as

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Speaker 2: Brent crudrose above one hundred dollars a barrel on Thursday

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Speaker 2: for the first time in almost two months, Bloomberg's at

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Speaker 2: Stewart Livingston Wallace explains why so.

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Speaker 3: I mean, I think a couple of things.

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Speaker 6: Number one is, there have been multiple reports of more

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Speaker 6: US forces coming into the region, or at least coming

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Speaker 6: into areas that look like they might potentially support the region.

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Speaker 6: And of course that interview that Trump gave yesterday saying

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Speaker 6: that you know he was at least considering plans for

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Speaker 6: a major escalation, you know, there seems to be at

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Speaker 6: least some concern around that. But I think more importantly

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Speaker 6: what happened in the Red Sea yesterday with attacks on

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Speaker 6: at least one Saturdi tank and potentially too, that in

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Speaker 6: itself is making the Old Market I think very nervous

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Speaker 6: about supplies coming in and.

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Speaker 3: Out of the region.

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Speaker 2: That was Boomberg's at Seward Livingston Wallace. Trumpada that any

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Speaker 2: damage to shipping and cargo would be paid for by

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Speaker 2: frozen Iranian funds. European Central Bank officials are preparing to

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Speaker 2: raise borrowing costs in September. Bloomberg understands officials see the

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Speaker 2: fallout from the Middle East conflict driving up prices and

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Speaker 2: forcing a hike. Central Bank's President Christian Laguard says the

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Speaker 2: topic came up in this week's right decision.

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Speaker 1: There were some governors who asked themselves whether we should

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Speaker 1: not consider a hike, in other words, raising the three

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Speaker 1: interest rates on the occasion of that meeting. And we

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Speaker 1: had really a good thorough look at the data at

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Speaker 1: the current development, and we all unanimously decided that we

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Speaker 1: were positioned adequately.

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Speaker 3: To wait.

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Speaker 2: Thecs Christian Laguard, speaking after this bank held rates yesterday,

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Speaker 2: she also hinted that she may leave her job early,

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Speaker 2: saying she was committed to staying at the bank for

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Speaker 2: the rest of this year. The UK's new Prime Minister,

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Speaker 2: Andy Burnham, is opening a new branch of Number ten

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Speaker 2: Downing Street in Manchester. The so called Number ten North

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Speaker 2: office is intended to symbolize the new leader's commitment to

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Speaker 2: drive in growth outside of London. JP Morgan Asset Management's

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Speaker 2: International fixed income CIO Ian Steely, says Burnham's first week

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Speaker 2: hasn't rattles the bond market.

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Speaker 7: Now, what we've heard over the last few days is

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Speaker 7: of very small, incremental policies that will probably use a

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Speaker 7: friendly but ultimately won't make a big, a big dent

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Speaker 7: in that. I think it's going to be more interesting

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Speaker 7: over the next.

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Speaker 3: Few weeks or so.

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Speaker 7: What do we do on defense, What do we do

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Speaker 7: on tax? What are the policies going to be there?

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Speaker 7: I actually think guilt look attractive, but there is going

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Speaker 7: to be political volatility, I think until we get a

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Speaker 7: greater sense of exactly what the new government want to do.

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Speaker 2: I see in Steely, adding that the market is already

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Speaker 2: expecting some amount of badness. News opposition parties of cold

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Speaker 2: Urnham's devolution push a gimmick, but recent polls are showing

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Speaker 2: the new leader improving the Labor Party's popularity. And when

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Speaker 2: the Trump administration shut down, USAID officials rejected warnings that

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Speaker 2: ending the agency's work would put lives at risk. Now

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Speaker 2: Bloomberg investigation is linked an unfinished US funded irrigation project

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Speaker 2: in Kenya to the worst flooding one village has experienced

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Speaker 2: at least a decade. Using interviews, satellite imagery, and government records.

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Speaker 2: Bloomberg found the abandoned project altered the flow of water,

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Speaker 2: destroying crops and fueling outbreaks of disease. Bloomberg's Simon Marx

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Speaker 2: worked on the investigation.

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Speaker 8: By pulling out overnight, they were really leaving a project

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Speaker 8: halfway through. So they had conducted a bunch of work

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Speaker 8: to this project, but they had also destroyed a lot

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Speaker 8: of the infrastructure in the area in the hope of

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Speaker 8: renovating it and bringing it back to life later. And

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Speaker 8: that in this case really brought about huge appheaval to

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Speaker 8: the local community because it changed what water was doing

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Speaker 8: within the irrigation scheme.

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Speaker 2: Bloomers Simon Marx there internal emails from former East Africa

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Speaker 2: USAID Director Amanda robertson warrant unfinished irrigation systems could flood villages.

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Speaker 2: Speaking to Bloomberg, she says that staff ordered to abandon

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Speaker 2: unfinished projects almost immediately after the Trump administration took office.

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Speaker 9: A week into the administration is when the stock work

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Speaker 9: order went into place, which was a shock for all

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Speaker 9: of us, and that meant that we really could not

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Speaker 9: do anything else, which really meant, you know, in the

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Speaker 9: most blunt of terms, shovels down, drop what you're doing,

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Speaker 9: walk away, and it doesn't really matter what condition it's in.

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Speaker 9: And then about a month later, a little over a

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Speaker 9: month later, our projects received cancelation notices.

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Speaker 2: Former East Africa USAID Director Amanda Robertson speaking there. The

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Speaker 2: US State Department did not answer detailed questions from Bloomberg

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Speaker 2: about the Kenya project, but says US Foreign Assistance is

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Speaker 2: now more agile, quicker to respond, and more accountable to taxpayers.

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Speaker 2: It says its global water strategies being revised to align

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Speaker 2: with the administration's America First priorities, while decisions on water

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Speaker 2: and sanitation programs for twenty twenty six.

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Speaker 3: Remain under review.

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Speaker 2: You can hear more from Bloomberg's investigation on the latest

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Speaker 2: episode of The Next Africa podcast, available now wherever you

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Speaker 2: get your podcasts. And those are our top stories on

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Speaker 2: the markets this morning, the mscis Specific Index two point

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Speaker 2: three percent, lower tech shares again weighing on markets in Asia,

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Speaker 2: the cospy and sold down by.

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Speaker 3: Four point seven percent.

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Speaker 2: Your stocks fifty futures are actually pointing two tenths of

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Speaker 2: one percent. Horribly watching the reaction to shares in SAP

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Speaker 2: after they reported cloud revenue growing at a faster pace

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Speaker 2: than unlyst that expected. Oil prices still over one hundred

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Speaker 2: dollars a borrow for Brent crude, although down by four

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Speaker 2: tenths of one percent on the day today. Well, in

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Speaker 2: a moment, we'll bring you more on that latest US

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Speaker 2: tariff announcement, plus tell you about the Barkley's executive as

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Speaker 2: one of the trickiest jobs in the industry. But another

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Speaker 2: story that caught her Rye this morning, especially as I'm

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Speaker 2: in the studio without Caroline today, about solo dining, or

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Speaker 2: rather the economy of doing things by yourself Bloomberg opinions.

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Speaker 2: Howard Hyuan has been writing about this, and he points

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Speaker 2: to the little figures from Open Table, the restaurant booking

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Speaker 2: websites that solo dining in American restaurants has written by

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Speaker 2: twenty three percent between last year and this year.

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Speaker 1: Now.

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Speaker 2: Howard is a pro at solo dining. He's written about

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Speaker 2: on several occasions, although I have to say I've actually

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Speaker 2: met Howard with groups of friends laughing uproariously in various

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Speaker 2: London restaurants over the years. He points to a demographic

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Speaker 2: rise of single person families in many parts of the

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Speaker 2: world and how the economy in places like.

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Speaker 3: Japan is adapting. He's dubbing this me economics.

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Speaker 2: He says that Japanese businesses have re engineered to accommodate

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Speaker 2: and develop this market in dining, in spas, and even

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Speaker 2: in karaoke, and while the rest of the world catches up.

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Speaker 2: He's got a couple of tips, including if restaurant dishes

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Speaker 2: are made to share, just bring a upper with you

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Speaker 2: take it home.

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Speaker 3: Why not.

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Speaker 2: It's a great read, as always from Howard yu One.

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Speaker 2: We'll put a linked in our podcast show Notes. Let's

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Speaker 2: bring you more though on the latest tariff announcement from

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Speaker 2: President Trump. He's using a provision over alleged failures to

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Speaker 2: prevent forced labor to impose levies of up to twelve

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Speaker 2: and a half percent, part of his efforts to rebuild

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Speaker 2: the tariffs struck down by the Supreme Court. Our chief

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Speaker 2: phaser correspondent Rosalind Mathieson joins us now for more. Ros

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Speaker 2: what is the basis end for these new tariffs and

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Speaker 2: how different are they from the so called reciprocal tariffs

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Speaker 2: that were struck down before.

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Speaker 10: Well, the difference is the effort to make this a

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Speaker 10: much more durable framework for the US, so previously relying

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Speaker 10: quite a lot on executive orders and emergency powers and

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Speaker 10: now relying on the tried and true investigations done under

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Speaker 10: that nineteen seventies Trade Act, this one around allegations of

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Speaker 10: use of forced labor, but there are other investigations underway,

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Speaker 10: including around excess capacity and therefore embidding it much more

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Speaker 10: in that process and making it more durable and sticky

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Speaker 10: as a result. I mean, there's a lot of headache

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Speaker 10: obviously in this either way for companies and importers and

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Speaker 10: potentially an impact on American consumers. It's a very complex

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Speaker 10: new framework which includes a lot of exemptions around things

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Speaker 10: like food or fertilizer or fuel. Obviously, if you're under

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Speaker 10: a sectoral tariff already, it may not impact to you,

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Speaker 10: including for autos for example. And it's got a knit

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Speaker 10: in with those existing bilateral trade agreements that have been

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Speaker 10: struck or those that are in negotiations.

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Speaker 3: So there's a lot of.

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Speaker 10: Complexities there, and the question is, you know, durability is

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Speaker 10: one thing, but also impact is another. At a time

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Speaker 10: that the American consumer is under pressure globally, of course,

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Speaker 10: there are those questions around prices from the war in

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Speaker 10: the Middle East, which has really impacted supply and prices

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Speaker 10: of things like energy, commodities and food and so on,

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Speaker 10: And so does this have an economic impact down the

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Speaker 10: lane line? Obviously, Donald Trump has got a very keen

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Speaker 10: eye on the midterm elections and is very interested in

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Speaker 10: trying to bring prices down. This may have the opposite

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Speaker 10: effect in a way, but any impact would probably be

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Speaker 10: felt mostly after the midterm elections.

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Speaker 2: Yeah, indeed, any point to the complexity because, as you say,

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Speaker 2: many of these tarists are applying to places like the

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Speaker 2: European Union that have a trade deal with the US already.

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Speaker 2: What sort of reaction have we heard from the countries

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Speaker 2: being affected by these new tariffs.

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Speaker 10: I've mostly heard from the Asian country so far. And

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Speaker 10: obviously there's the predictable comments around calling them things like

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Speaker 10: baseless and unjustified. Certainly a denial from allies of the

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Speaker 10: US that there is any force labor in their supply chain,

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Speaker 10: saying that there's no evidence of that or they have

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Speaker 10: taken steps over the years to weed that out. So

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Speaker 10: objections coming thick and fast, no sign though of intent

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Speaker 10: to retaliate, and where trade experts aren't really expecting to

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Speaker 10: see a lot of retaliation. These moves were expected in

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Speaker 10: a way. The overall impact is less clear again because

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Speaker 10: of all those exemptions and the rules around existing bilateral

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Speaker 10: trade deals. But more fundamentally, in the long term, it

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Speaker 10: does again chip away at those relationships between these countries

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Speaker 10: and blocks like the EU and the US and seeing

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Speaker 10: these places look to diversify their trade.

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Speaker 3: Relationships in the long term.

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Speaker 10: So most trade expects don't expect retaliation, but they do

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Speaker 10: expect this to be one of those factors that leads

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Speaker 10: to a long term shift away from the US when

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Speaker 10: it comes to trade.

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Speaker 2: Yeah, indeed, and it just adds to the complexity of

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Speaker 2: the changing relationships under the Trump administration as well. Ras

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Speaker 2: thank you very much for joining us. Our chief Asia

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Speaker 2: correspondent Rosalind Matheson stay with us. More from Bloomberg Daybreak

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Speaker 2: Europe coming up after this.

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Speaker 11: Now.

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Speaker 2: Barkley's head of Markets is steering the division through one

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Speaker 2: of the trickiest balancing acts in banking. Deal can is

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Speaker 2: trying to deliver growth within the confines of the capital

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Speaker 2: limits imposed by the lenders and of course, in the

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Speaker 2: shadow of the performance of Wall Street banks as well.

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Speaker 3: Our finance reporter Willshaw joins us now from More.

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Speaker 2: Will firstly tell us a bit more about a Deal

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Speaker 2: Canon and why he's such a key figure at Barclays.

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Speaker 11: Well, he runs the global markets business at Barkleys, which

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Speaker 11: is really the biggest trading business after the five big

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Speaker 11: US Wall Street giants, and it's essentially the UK's investment bank.

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Speaker 11: When the firm's Q two earnings come in on Tuesday,

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Speaker 11: his traders are expected to bring in about two point

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Speaker 11: five billion pounds, so not massive amounts compared to Wall Street,

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Speaker 11: but obviously by UK standards a lot of money involved,

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Speaker 11: and his fans inside and outside Barkleys hope that he

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Speaker 11: may one day become the CEO whenever the current head,

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Speaker 11: known as Venka, decides to step down.

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Speaker 3: So you didn't get to speak to him for this piece.

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Speaker 3: He doesn't do media interviews.

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Speaker 2: But what did you learn about a deal Can on

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Speaker 2: a personal level within the bank and what people think

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Speaker 2: of him, Well, he's charming.

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Speaker 11: He's obsessed with detail, he valued his personal loyalty, and

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Speaker 11: I think it's fair to say he can sometimes be

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Speaker 11: slightly scary. Every few months he holds very rigorous business

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Speaker 11: reviews with his top traders and salespeople. These are quite

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Speaker 11: notorious inside the bank. He cross examines them in a

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Speaker 11: way that speaks both to his dedication to high standards

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Speaker 11: and his tendency I think to be quite a formidable presence,

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Speaker 11: and Venkat, his boss, has essentially leaned into him and

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Speaker 11: tasks him with achieving change fast in what is sometimes

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Speaker 11: quite a slow moving bank.

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Speaker 2: So talk to us then about adel Khan's background, how

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Speaker 2: did he rise to the position that he's in now.

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Speaker 11: And when he was born in Pakistan. He joined Barkie's

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Speaker 11: in two thousand and eight, at around the time that

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Speaker 11: the bank was buying the American business of Lehman Brothers.

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Speaker 11: His star rose a couple of years later in the

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Speaker 11: Eurozone debt crisis, where he was making the bank one

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Speaker 11: hundred million on some years via credit default swaps. He

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Speaker 11: would socialize intensely after work. He'd sometimes hosts colleagues his

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Speaker 11: mother in law's apartment in Monaco to watch the Grand Prix.

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Speaker 11: It is a very highly personalized style that all helps

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Speaker 11: to cement loyalty, which I think is key to his approach.

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Speaker 11: By twenty twelve, he was head of European Credit. Two

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Speaker 11: years later he was head of Global credit, and by

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Speaker 11: twenty twenty four he was sole head of Global markets.

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Speaker 2: So what does he want to do next and one

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Speaker 2: of the biggest challenges facing him within Barclays.

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Speaker 11: What people close to him say is extremely ambitious and

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Speaker 11: likely has got further still to rise. The issue for

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Speaker 11: him really is that the bank has imposed these cattle

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Speaker 11: limits on the investment bank, which means that it's harder

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Speaker 11: for the market's business to grow, and instead Barkley's prioritizing

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Speaker 11: growth in areas like retail banking and wealth. He has

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Speaker 11: been in talks to potentially get into new asset classes

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Speaker 11: and jurisdictions, but he hasn't made any major moves at

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Speaker 11: this stage. The challenge will be working within those limits

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Speaker 11: and keeping on the right side of Barclay's investors, who

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Speaker 11: are keen to see a very disciplined approach to capital allocation.

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Speaker 3: Thanks for listening to Bloomberg Daybreak Europe.

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