May 10, 2024 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) President Joe Biden’s administration is poised to unveil a sweeping decision on China tariffs as soon as next week, one that’s expected to target key strategic sectors while rejecting the across-the-board hikes sought by Donald Trump, people familiar with the matter said.
(2) Israeli Prime Minister Benjamin Netanyahu struck a defiant tone against President Joe Biden after the US withheld a shipment of bombs as a warning to its top Middle East ally not to invade the southern Gaza city of Rafah.
(3) After months in which the Bank of England and markets have been at loggerheads over the direction of interest rates — with the US Federal Reserve more powerful in shaping expectations than words from the UK central bank — they have now fallen roughly into line.
(4) Arm Holdings Plc shares tumbled after the chip designer gave a lukewarm revenue forecast for the fiscal year, raising concerns that the tech industry’s artificial intelligence spending spree is slowing.
(5) In a small side room, roughly 40 people, including some of Wall Street’s most senior executives of color, crowded around a rectangular array of tables for an invitation-only panel and confronted hedge fund manager Bill Ackman for his attacks on diversity, equity and inclusion, or DEI, initiatives, according to five attendees.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This is the Bloomberg Day Bak you At podcast, available
every morning on Apple, Spotify or wherever you listen. It's Friday,
the tenth of May in London.
Speaker 2 (00:09):
I'm Caroline Hipkin.
Speaker 3 (00:10):
And I'm Stephen Carroll. Coming up today, the United States
is poised to announce major new tariffs targeting China's strategic sectors.
Speaker 1 (00:18):
Benjamin Netanya, who says Israel will continue its war against
Hamas despite US warnings.
Speaker 3 (00:23):
Plus to tip or not to tip? Why British pubgoers
are facing a new dilemma at the bar.
Speaker 2 (00:29):
Let's start with a roundup of our top stories.
Speaker 3 (00:31):
US President Joe Biden will unveil tariffs against China as
soon as next week, targeting key sectors including electric vehicles, batteries,
and solar equipment. Bloomberg has learned the policies, which would
mark of one of Biden's biggest moves against Chinese trade,
are scheduled to be announced next Tuesday. Bloomberg's Stephen Engel
says it's the latest sign of how Chinese subsidies are
(00:54):
causing a global backlash.
Speaker 4 (00:56):
What we're hearing from sources in this scoop is that
these new Tuo tariffs would be very targeted at the
three key green industries that Chi Jinping has essentially earmarked
as priorities for investment, the New Three, as he called
it at the National People's Congress in March, and that
is electric vehicles, batteries, and solar.
Speaker 3 (01:18):
Steven Engel adds these targeted plans are a contrast to
Donald Trump's pledge to levy a sixty percent tax on
all Chinese imports if he wins the next election. Biden's
tariff move comes after a stabilization of ties with China
amid a flurry of diplomatic engagements.
Speaker 1 (01:35):
Benjamin Netna, who says Israel will fight alone even without
US help and must continue its offensive against Hamas in Rafa.
On Wednesday, President Biden said that he would hold additional
shipments of offensive weapons to Israel if it launches a
ground invasion of the southern Gaza city. But Benjamin Netna,
who told American television personality Doctor Phil he has to
(01:58):
protect his country.
Speaker 5 (02:00):
I've said in the Holocaust memorial service that we had
the other day, I said in the Holocaust we stood alone,
but we were defenseless. And today if Israel has to
stand alone, we'll stand alone.
Speaker 1 (02:15):
The Israeli Prime minister was responding to the US withholding
a shipment of bombs as a sign of the growing
rift between the two countries. The UK has echoed America's concerns,
saying that it won't support any major Israeli operation in RAFA.
Speaker 3 (02:30):
The Bank of England and market so now roughly in
line about the prospect of a June rate cut. This
after months of divergence between investors and policymakers over when
borrowing costs will be lowered. The Bank of England held
rates steady at its meeting yesterday. Governor Andrew Bailey said
a loosening of monetary policy may come soon.
Speaker 6 (02:48):
With the progress we've made to make sure that inflation
stays around the two percent target, it's likely that we
will need to cut bank rate over the coming quarters
and make monitory policy is somewhat less restrictive over the
forecast period, possibly more so than currently priced into market.
Speaker 3 (03:04):
Roots spanker finger Governor Andrew Bailey. Following his remarks, investor
bets on a June rate cut rows to over fifty percent,
marking a significant shift away from paired back bets and
response to stronger US inflation. In terms of data. Two
sets of inflation and labor market releases are due in
the UK before the next Monetary Policy Committee vote on
(03:25):
the twentieth of June.
Speaker 1 (03:28):
Sabadel is accusing BBVA of breaking Spanish laws with its
twelve billion dollar hostile takeover bid for the bank. Tensions
are running high between the two lenders after bbva's offer,
which rivals Abadel says, introduces quote incomplete information that may
affect the market. The Spanish government is also opposed to
(03:48):
the mergers, saying that they have the final word on
approving any deal. Hostile bids are a rarity in European banking.
A spokesperson for BBVA had no comment when contacted by Berg.
Speaker 3 (04:01):
Bill Ackman was criticized for his public attacks on diversity
and inclusion policies, and a closed door panel at the
Milken Conference about forty people, including some of Wall Street's
most senior executives of color, confronted Akman for an hour. Reportedly,
even fellow panelists, which included Teacher Retirement System of Texas
(04:21):
chair Jarvis Hollingsworth and the president of Guggenheim Investments Dina
do Lorenzo, took Wachman to task at least one speaker
said his public comments reflected eight poor understanding of the
civil rights movement.
Speaker 1 (04:35):
Armshares tumbled on Thursday after a tepid revenue forecast for
the fiscal year raised concerns about a slowdown in the
tech sector's AI spending. The UK based chip designer, who's
upbeat forecast sent schares soaring only three months ago, so
that revenue in the year to March twenty twenty five
will be lower than analysts head forecasts. Arm CEO Rene
(04:56):
Hass has been speaking to Boombogs, Caroline Hyde and Ed
Ludd about why he is optimistic about their rate of growth.
Speaker 7 (05:04):
We're actually forecasting even higher growth this year and north
of twenty percent, and we also signaled to the markets
yesterday that in twenty five, twenty six, twenty seven we
see that growth continuing. So we have incredible visibility into
our business and we're very, very confident of this growth
rate going forward.
Speaker 1 (05:21):
That was I'm CEO and Aha speaking to Bloomberg there now.
In a moment, we will discuss the Biden China tariffs.
It's a Bloomberg exclusive. The expectation is that they will
be announced to Tuesday next week. And also why tipping
in pubs in the UK is becoming more common. It's
a really nice read on Friday. But first, the huge
(05:42):
backlash that we've seen this week against Apple's Crush ad.
The companies issued a rare apology.
Speaker 3 (05:49):
Yeah, I mean, if you haven't seen it, it's essentially
a giant sort of press that comes out and crushes
a variety of creative illustrations of musical instruments, pots of paints,
where seting. Yeah, there was even an angry bird in
there from the Rovio computer game as well. And Apple
says it won't air the ad on TV as planned
and said that creativity was in their DNA and Apple
(06:11):
and it was important for them design products that power
creatives all over the world. Daily our opinion Colum must
have been writing about this, describing the ad as being
tone deaf and saying he's found it hard to believe
that no one saw it coming, that this ad would
come in for such criticism for literally crushing creativity.
Speaker 1 (06:27):
Yeah, I think the Internet kind of reacted so vehemently.
I mean, it is a bit of a depressing thought.
I think it probably reflects kind of a lot of
the worries around AI and the sort of tech future
that we all face. But yes, I think a rare
misstep perhaps in Apple's advertising.
Speaker 3 (06:44):
One killer line in Dave Lee's piece, it's Apple's worst
marketing faux pas since it forced everyone to listen to
you too.
Speaker 2 (06:52):
Yeah, okay, I like that good stuff.
Speaker 1 (06:55):
Right. Let's send our attention then to the Bloomberg exclusive story.
Very interesting, of course, dating back to twenty eighteen, the
United States has had broad sanctions against China. Now President
Biden and the administration in the US has undertaking quite
a significant review of those. The former president Donald Trump,
(07:17):
of course wants to bring back much heavier penalties against China.
But now the expectation around Joe Biden is that they'll
be quite targeted tariffs.
Speaker 3 (07:26):
And the fact that this is also don't forget an
election issue in the United States as well, because Donald
Trump has promised even more severe tariffs if he were
to be re elected in November. Joining US now to
discuss as our greater China Economy and Government editor Jenny
Marsh Jenny, great to have you with us on the program.
Just take us through the details of what we're expecting
the US to announce with these new measures.
Speaker 8 (07:49):
So President Jo Biden. He is poised unveil this big
decision next week. It's going to target these key sort
of clean tech areas that China has really thrown the
weight of his economy. So we're looking at EV's batteries
and solar cells. And this is part of a broad
review of tariffs under the sort of the Section three
(08:09):
oh one tariffs at Trump imposed during his presidency. But
these levees are going to be new tariffs that are
going to put growing pressure on three industries where Beijing
is already feeling that he internationally over issues of over capacity.
Speaker 1 (08:22):
Yeah, so, how significant then is it in terms of
escalation in the US China trade battle.
Speaker 8 (08:31):
It's sort of ramping up the rhetoric, but actually it's
not as dramatic as it first seems because China's access
to the US market has been severely detailed already because
there are these twenty seven point five percent tariffs on autos,
so evs are not really there's a very small amount
of trade. It's not like with the European Union where
they're actually shipping tons of these things out to Europe.
(08:55):
They're not to the US. So it's more preventative. You know,
China has this sort of first mover adviceanted in the US,
it's really sort of closing the door on that solar panels,
solar cells, you know, already facing tariffs, and so Chinese
companies have already sort of put many of their factories
in places like Vietnam and they export directly to the
US front there. So tariffs on Chinese exports not really
(09:19):
don't have too much of an impact. Batteries is an
area of concern where they'll probably be more impact, but
on the face of it seems very bad. When you
dig down, a lot of actually is quite symbolic.
Speaker 3 (09:30):
What about China's response to all of this, I mean,
President she has been in Europe where also there's been
criticism of Chinese subsidized exports as well. What are we
what do we should we expect from China in terms
of a response.
Speaker 8 (09:47):
China has been very sort of muted in its response
so far to sort of all of the jockeying that's
happening during the US election. You know, both Biden and
Trump have you know, they're both playing sort of the
to China card in the election because it plays really
well with voters. You know, Biden last month has sort
of pledged to twenty five percent tariffon steel and aluminium
(10:10):
to sort of win to sort of secure votes amongst
union workers in those industries. It sounds good. In reality,
China doesn't really export much of that stuff to the US.
So their reaction to that was quite mutily announced some
sort of tip for tat tariffs on a chemical that
again that the US doesn't important much of to China.
So you can expect sort of a likeful like response,
(10:32):
you know, but it's damaging the relationship and understable, you know,
it sort of destabilizes a relationship overall. They're trying to
manage these ties, but the rhetoric and the trade tensions
are ramping up.
Speaker 2 (10:45):
Yeah.
Speaker 1 (10:45):
Absolutely, and Jenny, thank you so much for being with
us this morning. Our Greater China Economy and Government editor
Jenny Marsh. Then, as we expect the US to come
out with these tariffs and next week on Tuesday, there's
also a very good piece on the terminal. In terms
of the research from the European perspective, the EU Chamber
of Commerce in China says that China is losing its
lost as the top country to invest in firms sort
(11:08):
of trying to avoid all of these geopolitical risks.
Speaker 3 (11:11):
And looking at alternatives instead. Let's turn to a completely
different story. Now it's Friday. Perhaps you're already looking forward
to your after work drink in.
Speaker 2 (11:21):
A pub, perhaps Sunshine Beckett here in the UK.
Speaker 3 (11:24):
But do you tip the bar staff? Tipping used to
be entirely optional in London pubs and limited to the
change from paying for drinks, but that's changing, and as
transactions have gone cashless, card readers at pubs are nudging
customers to tip. It's creating some awkward scenes and leaving
British pub goers with the sense pub cultures becoming Americanized.
Tony Palatso, a senior editor for Global Business at Bloomberg,
(11:46):
joins us now at more details on this story. Tony,
First of all, what's the background to this? How did
you get onto this story and what did you find?
Speaker 9 (11:55):
This was a pretty fun story.
Speaker 10 (11:57):
It started when I walked into my neighborhod pub and
I ordered a couple of drinks with some food, and
when the bartender put the card reader in front of me,
I tried to tap it as I normally do, and
it wouldn't work.
Speaker 9 (12:11):
And then I looked.
Speaker 10 (12:12):
And I saw that it was asking me first to
choose a tip, and I think it was like five
percent or ten percent, And being a polite American who's
lived in New York and Los Angeles, I complied and
I tapped my card and I went back to my
seat with my two pints. But I was a little
shell shocked, and this had never happened to me before.
(12:35):
I lived in London for eight years, and in fact,
when I first came here, I tried to tip a
bartender on a card and he just looked at me
like I was crazy, And so I hadn't even tried
since then. So I mentioned this to some friends and colleagues,
and some of them had had the same experiences, and
(12:56):
so I thought, okay, well, let's look into this and
if it's happening more and more and in a way
that we can quantify, maybe we'll have a story.
Speaker 1 (13:05):
Yeah, it's a great story. I've noticed the same thing. Although,
of course, you know, the pandemic has been very rough
on hospitality.
Speaker 2 (13:13):
So is it that? Is it the americanization? What do
the numbers tell you?
Speaker 9 (13:20):
Well?
Speaker 10 (13:21):
We we well, first of all, we reached out to
the payment networks.
Speaker 9 (13:25):
We talked to Dojo, and we talked to some up.
Speaker 10 (13:28):
And they confirmed for us that yes, in fact, it
is happening. Uh More merchants are reaching are asking people
to pay a tip, and more and more people are tipping.
And in fact, there's more tipping going on now in
pubs than in taxi cabs or in hairdressers for example.
(13:50):
So uh so, yeah, there's I mean, there's a there's
a few things that are driving the change.
Speaker 9 (13:58):
First of all, societ is going cashless.
Speaker 10 (14:01):
So one big thing that's been happening is in the past,
you'd walk into the pub, especially for a small transaction
like a pinter or two, you'd pay with cash and
then you'd get you receive some coins back as change,
and the customers might put it in their pocket or
they might leave it as a tip for the bar man.
Speaker 9 (14:22):
But it was a small amount.
Speaker 10 (14:25):
And what's happening, what's happened, you know, in recent years,
is virtually everything is being done with the tap. I
don't even walk around with cash money anymore, and so
the technology has been updated.
Speaker 9 (14:39):
And then you know, to your question, how did the
pandemic affect this?
Speaker 10 (14:47):
Well, ordering ordering if you remember when people came back
from the lockouts. From the lockdowns, people were being asked
to order over q R codes and use their phone,
and that made it easier for restaurants and pubs to
ask people for a tip, and people were feeling generous.
(15:10):
They felt bad for the wait staff and the bartenders
who had been out of work for so long, and
so they started they started doing it. More recently, the
pubs are starting to see this as a way to
attract workers and give and give workers a perk that
(15:31):
will help the pubs compete with restaurants and hotels for talent.
Speaker 9 (15:36):
And this at a time when.
Speaker 10 (15:37):
Profits are tight, wage inflation is on the rise, food
inflation is on the rise, and workers are hard to find.
Speaker 3 (15:48):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (15:55):
Look for us on your podcast feed every morning on Apple,
Spotify and anywhere else get your podcasts.
Speaker 3 (16:01):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (16:06):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (16:14):
I'm Caroline Hepka, and I'm Stephen.
Speaker 3 (16:16):
Carol join us again tomorrow morning for all the news
you need to start your day right here on Bloomberg Daybreak.
Speaker 9 (16:22):
Europe
This is the Bloomberg Day Bak you At podcast, available
every morning on Apple, Spotify or wherever you listen. It's Friday,
the tenth of May in London.
Speaker 2 (00:09):
I'm Caroline Hipkin.
Speaker 3 (00:10):
And I'm Stephen Carroll. Coming up today, the United States
is poised to announce major new tariffs targeting China's strategic sectors.
Speaker 1 (00:18):
Benjamin Netanya, who says Israel will continue its war against
Hamas despite US warnings.
Speaker 3 (00:23):
Plus to tip or not to tip? Why British pubgoers
are facing a new dilemma at the bar.
Speaker 2 (00:29):
Let's start with a roundup of our top stories.
Speaker 3 (00:31):
US President Joe Biden will unveil tariffs against China as
soon as next week, targeting key sectors including electric vehicles, batteries,
and solar equipment. Bloomberg has learned the policies, which would
mark of one of Biden's biggest moves against Chinese trade,
are scheduled to be announced next Tuesday. Bloomberg's Stephen Engel
says it's the latest sign of how Chinese subsidies are
(00:54):
causing a global backlash.
Speaker 4 (00:56):
What we're hearing from sources in this scoop is that
these new Tuo tariffs would be very targeted at the
three key green industries that Chi Jinping has essentially earmarked
as priorities for investment, the New Three, as he called
it at the National People's Congress in March, and that
is electric vehicles, batteries, and solar.
Speaker 3 (01:18):
Steven Engel adds these targeted plans are a contrast to
Donald Trump's pledge to levy a sixty percent tax on
all Chinese imports if he wins the next election. Biden's
tariff move comes after a stabilization of ties with China
amid a flurry of diplomatic engagements.
Speaker 1 (01:35):
Benjamin Netna, who says Israel will fight alone even without
US help and must continue its offensive against Hamas in Rafa.
On Wednesday, President Biden said that he would hold additional
shipments of offensive weapons to Israel if it launches a
ground invasion of the southern Gaza city. But Benjamin Netna,
who told American television personality Doctor Phil he has to
(01:58):
protect his country.
Speaker 5 (02:00):
I've said in the Holocaust memorial service that we had
the other day, I said in the Holocaust we stood alone,
but we were defenseless. And today if Israel has to
stand alone, we'll stand alone.
Speaker 1 (02:15):
The Israeli Prime minister was responding to the US withholding
a shipment of bombs as a sign of the growing
rift between the two countries. The UK has echoed America's concerns,
saying that it won't support any major Israeli operation in RAFA.
Speaker 3 (02:30):
The Bank of England and market so now roughly in
line about the prospect of a June rate cut. This
after months of divergence between investors and policymakers over when
borrowing costs will be lowered. The Bank of England held
rates steady at its meeting yesterday. Governor Andrew Bailey said
a loosening of monetary policy may come soon.
Speaker 6 (02:48):
With the progress we've made to make sure that inflation
stays around the two percent target, it's likely that we
will need to cut bank rate over the coming quarters
and make monitory policy is somewhat less restrictive over the
forecast period, possibly more so than currently priced into market.
Speaker 3 (03:04):
Roots spanker finger Governor Andrew Bailey. Following his remarks, investor
bets on a June rate cut rows to over fifty percent,
marking a significant shift away from paired back bets and
response to stronger US inflation. In terms of data. Two
sets of inflation and labor market releases are due in
the UK before the next Monetary Policy Committee vote on
(03:25):
the twentieth of June.
Speaker 1 (03:28):
Sabadel is accusing BBVA of breaking Spanish laws with its
twelve billion dollar hostile takeover bid for the bank. Tensions
are running high between the two lenders after bbva's offer,
which rivals Abadel says, introduces quote incomplete information that may
affect the market. The Spanish government is also opposed to
(03:48):
the mergers, saying that they have the final word on
approving any deal. Hostile bids are a rarity in European banking.
A spokesperson for BBVA had no comment when contacted by Berg.
Speaker 3 (04:01):
Bill Ackman was criticized for his public attacks on diversity
and inclusion policies, and a closed door panel at the
Milken Conference about forty people, including some of Wall Street's
most senior executives of color, confronted Akman for an hour. Reportedly,
even fellow panelists, which included Teacher Retirement System of Texas
(04:21):
chair Jarvis Hollingsworth and the president of Guggenheim Investments Dina
do Lorenzo, took Wachman to task at least one speaker
said his public comments reflected eight poor understanding of the
civil rights movement.
Speaker 1 (04:35):
Armshares tumbled on Thursday after a tepid revenue forecast for
the fiscal year raised concerns about a slowdown in the
tech sector's AI spending. The UK based chip designer, who's
upbeat forecast sent schares soaring only three months ago, so
that revenue in the year to March twenty twenty five
will be lower than analysts head forecasts. Arm CEO Rene
(04:56):
Hass has been speaking to Boombogs, Caroline Hyde and Ed
Ludd about why he is optimistic about their rate of growth.
Speaker 7 (05:04):
We're actually forecasting even higher growth this year and north
of twenty percent, and we also signaled to the markets
yesterday that in twenty five, twenty six, twenty seven we
see that growth continuing. So we have incredible visibility into
our business and we're very, very confident of this growth
rate going forward.
Speaker 1 (05:21):
That was I'm CEO and Aha speaking to Bloomberg there now.
In a moment, we will discuss the Biden China tariffs.
It's a Bloomberg exclusive. The expectation is that they will
be announced to Tuesday next week. And also why tipping
in pubs in the UK is becoming more common. It's
a really nice read on Friday. But first, the huge
(05:42):
backlash that we've seen this week against Apple's Crush ad.
The companies issued a rare apology.
Speaker 3 (05:49):
Yeah, I mean, if you haven't seen it, it's essentially
a giant sort of press that comes out and crushes
a variety of creative illustrations of musical instruments, pots of paints,
where seting. Yeah, there was even an angry bird in
there from the Rovio computer game as well. And Apple
says it won't air the ad on TV as planned
and said that creativity was in their DNA and Apple
(06:11):
and it was important for them design products that power
creatives all over the world. Daily our opinion Colum must
have been writing about this, describing the ad as being
tone deaf and saying he's found it hard to believe
that no one saw it coming, that this ad would
come in for such criticism for literally crushing creativity.
Speaker 1 (06:27):
Yeah, I think the Internet kind of reacted so vehemently.
I mean, it is a bit of a depressing thought.
I think it probably reflects kind of a lot of
the worries around AI and the sort of tech future
that we all face. But yes, I think a rare
misstep perhaps in Apple's advertising.
Speaker 3 (06:44):
One killer line in Dave Lee's piece, it's Apple's worst
marketing faux pas since it forced everyone to listen to
you too.
Speaker 2 (06:52):
Yeah, okay, I like that good stuff.
Speaker 1 (06:55):
Right. Let's send our attention then to the Bloomberg exclusive story.
Very interesting, of course, dating back to twenty eighteen, the
United States has had broad sanctions against China. Now President
Biden and the administration in the US has undertaking quite
a significant review of those. The former president Donald Trump,
(07:17):
of course wants to bring back much heavier penalties against China.
But now the expectation around Joe Biden is that they'll
be quite targeted tariffs.
Speaker 3 (07:26):
And the fact that this is also don't forget an
election issue in the United States as well, because Donald
Trump has promised even more severe tariffs if he were
to be re elected in November. Joining US now to
discuss as our greater China Economy and Government editor Jenny
Marsh Jenny, great to have you with us on the program.
Just take us through the details of what we're expecting
the US to announce with these new measures.
Speaker 8 (07:49):
So President Jo Biden. He is poised unveil this big
decision next week. It's going to target these key sort
of clean tech areas that China has really thrown the
weight of his economy. So we're looking at EV's batteries
and solar cells. And this is part of a broad
review of tariffs under the sort of the Section three
(08:09):
oh one tariffs at Trump imposed during his presidency. But
these levees are going to be new tariffs that are
going to put growing pressure on three industries where Beijing
is already feeling that he internationally over issues of over capacity.
Speaker 1 (08:22):
Yeah, so, how significant then is it in terms of
escalation in the US China trade battle.
Speaker 8 (08:31):
It's sort of ramping up the rhetoric, but actually it's
not as dramatic as it first seems because China's access
to the US market has been severely detailed already because
there are these twenty seven point five percent tariffs on autos,
so evs are not really there's a very small amount
of trade. It's not like with the European Union where
they're actually shipping tons of these things out to Europe.
(08:55):
They're not to the US. So it's more preventative. You know,
China has this sort of first mover adviceanted in the US,
it's really sort of closing the door on that solar panels,
solar cells, you know, already facing tariffs, and so Chinese
companies have already sort of put many of their factories
in places like Vietnam and they export directly to the
US front there. So tariffs on Chinese exports not really
(09:19):
don't have too much of an impact. Batteries is an
area of concern where they'll probably be more impact, but
on the face of it seems very bad. When you
dig down, a lot of actually is quite symbolic.
Speaker 3 (09:30):
What about China's response to all of this, I mean,
President she has been in Europe where also there's been
criticism of Chinese subsidized exports as well. What are we
what do we should we expect from China in terms
of a response.
Speaker 8 (09:47):
China has been very sort of muted in its response
so far to sort of all of the jockeying that's
happening during the US election. You know, both Biden and
Trump have you know, they're both playing sort of the
to China card in the election because it plays really
well with voters. You know, Biden last month has sort
of pledged to twenty five percent tariffon steel and aluminium
(10:10):
to sort of win to sort of secure votes amongst
union workers in those industries. It sounds good. In reality,
China doesn't really export much of that stuff to the US.
So their reaction to that was quite mutily announced some
sort of tip for tat tariffs on a chemical that
again that the US doesn't important much of to China.
So you can expect sort of a likeful like response,
(10:32):
you know, but it's damaging the relationship and understable, you know,
it sort of destabilizes a relationship overall. They're trying to
manage these ties, but the rhetoric and the trade tensions
are ramping up.
Speaker 2 (10:45):
Yeah.
Speaker 1 (10:45):
Absolutely, and Jenny, thank you so much for being with
us this morning. Our Greater China Economy and Government editor
Jenny Marsh. Then, as we expect the US to come
out with these tariffs and next week on Tuesday, there's
also a very good piece on the terminal. In terms
of the research from the European perspective, the EU Chamber
of Commerce in China says that China is losing its
lost as the top country to invest in firms sort
(11:08):
of trying to avoid all of these geopolitical risks.
Speaker 3 (11:11):
And looking at alternatives instead. Let's turn to a completely
different story. Now it's Friday. Perhaps you're already looking forward
to your after work drink in.
Speaker 2 (11:21):
A pub, perhaps Sunshine Beckett here in the UK.
Speaker 3 (11:24):
But do you tip the bar staff? Tipping used to
be entirely optional in London pubs and limited to the
change from paying for drinks, but that's changing, and as
transactions have gone cashless, card readers at pubs are nudging
customers to tip. It's creating some awkward scenes and leaving
British pub goers with the sense pub cultures becoming Americanized.
Tony Palatso, a senior editor for Global Business at Bloomberg,
(11:46):
joins us now at more details on this story. Tony,
First of all, what's the background to this? How did
you get onto this story and what did you find?
Speaker 9 (11:55):
This was a pretty fun story.
Speaker 10 (11:57):
It started when I walked into my neighborhod pub and
I ordered a couple of drinks with some food, and
when the bartender put the card reader in front of me,
I tried to tap it as I normally do, and
it wouldn't work.
Speaker 9 (12:11):
And then I looked.
Speaker 10 (12:12):
And I saw that it was asking me first to
choose a tip, and I think it was like five
percent or ten percent, And being a polite American who's
lived in New York and Los Angeles, I complied and
I tapped my card and I went back to my
seat with my two pints. But I was a little
shell shocked, and this had never happened to me before.
(12:35):
I lived in London for eight years, and in fact,
when I first came here, I tried to tip a
bartender on a card and he just looked at me
like I was crazy, And so I hadn't even tried
since then. So I mentioned this to some friends and colleagues,
and some of them had had the same experiences, and
(12:56):
so I thought, okay, well, let's look into this and
if it's happening more and more and in a way
that we can quantify, maybe we'll have a story.
Speaker 1 (13:05):
Yeah, it's a great story. I've noticed the same thing. Although,
of course, you know, the pandemic has been very rough
on hospitality.
Speaker 2 (13:13):
So is it that? Is it the americanization? What do
the numbers tell you?
Speaker 9 (13:20):
Well?
Speaker 10 (13:21):
We we well, first of all, we reached out to
the payment networks.
Speaker 9 (13:25):
We talked to Dojo, and we talked to some up.
Speaker 10 (13:28):
And they confirmed for us that yes, in fact, it
is happening. Uh More merchants are reaching are asking people
to pay a tip, and more and more people are tipping.
And in fact, there's more tipping going on now in
pubs than in taxi cabs or in hairdressers for example.
(13:50):
So uh so, yeah, there's I mean, there's a there's
a few things that are driving the change.
Speaker 9 (13:58):
First of all, societ is going cashless.
Speaker 10 (14:01):
So one big thing that's been happening is in the past,
you'd walk into the pub, especially for a small transaction
like a pinter or two, you'd pay with cash and
then you'd get you receive some coins back as change,
and the customers might put it in their pocket or
they might leave it as a tip for the bar man.
Speaker 9 (14:22):
But it was a small amount.
Speaker 10 (14:25):
And what's happening, what's happened, you know, in recent years,
is virtually everything is being done with the tap. I
don't even walk around with cash money anymore, and so
the technology has been updated.
Speaker 9 (14:39):
And then you know, to your question, how did the
pandemic affect this?
Speaker 10 (14:47):
Well, ordering ordering if you remember when people came back
from the lockouts. From the lockdowns, people were being asked
to order over q R codes and use their phone,
and that made it easier for restaurants and pubs to
ask people for a tip, and people were feeling generous.
(15:10):
They felt bad for the wait staff and the bartenders
who had been out of work for so long, and
so they started they started doing it. More recently, the
pubs are starting to see this as a way to
attract workers and give and give workers a perk that
(15:31):
will help the pubs compete with restaurants and hotels for talent.
Speaker 9 (15:36):
And this at a time when.
Speaker 10 (15:37):
Profits are tight, wage inflation is on the rise, food
inflation is on the rise, and workers are hard to find.
Speaker 3 (15:48):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 1 (15:55):
Look for us on your podcast feed every morning on Apple,
Spotify and anywhere else get your podcasts.
Speaker 3 (16:01):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (16:06):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (16:14):
I'm Caroline Hepka, and I'm Stephen.
Speaker 3 (16:16):
Carol join us again tomorrow morning for all the news
you need to start your day right here on Bloomberg Daybreak.
Speaker 9 (16:22):
Europe
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