September 17, 2025 • 17 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Microsoft, OpenAI and other American companies announced plans to spend tens of billions of dollars on technology infrastructure in the UK, part of a series of business deals that coincide with President Donald Trump’s visit to the nation this week.
(2) British drugmaker GSK pledged to invest $30 billion in the US over the next five years, making the announcement as President Donald Trump arrives in the UK for a highly anticipated state visit.
(3) The euro hit its strongest level in four years as traders prepared for an interest-rate cut from the Federal Reserve this week that will cement its diverging trajectory from the European Central Bank.
(4) TikTok’s US operations would be acquired by a consortium that includes Oracle, Andreessen Horowitz and private equity firm Silver Lake Management under a deal President Donald Trump is set to discuss with Chinese President Xi Jinping this week.
(5) Europe’s top business lobby in China urged Beijing to address price wars and unsustainable competition as the country readies its next five-year plan — adding to pressure from the US over the matter.
(6) The cyberattack that’s brought Jaguar Land Rover Automotive Plc factories to a standstill is affecting suppliers, with some European parts makers forced to pause or scale back their own production.
Podcast Conversation: CEOs Win Over Trump With a Trophy, Prizes and Bragging Rights
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bluemberg Daybacurate podcast. Good morning, It's Wednesday,
the seventeenth of September. I'm Caroline Hepka in London and.
Speaker 3 (00:16):
I'm Stephen Caroline Brussels. Coming up today, Microsoft, Open AI,
and Vidia and others commit to investing tens of billions
of pounds in Britain during Donald Trump's state visit.
Speaker 2 (00:27):
The US President will have an audience with the King
as the UK government shelves talks of eliminating steel tariffs.
Speaker 3 (00:34):
Plus is fifty the new twenty five Traders boost bets
on a half point interest rate cut from the Federal
Reserve by the end of the year.
Speaker 2 (00:42):
Let's start with a roundup of our top stories. Our
top stories.
Speaker 3 (00:45):
Some of the world's largest technology firms have announced tens
of billions of pounds of UK investment to coincide with
US President Donald trump state visit. Microsoft and Video and
Google are among the companies who say they will spend
billions building out Britain AI infrastructure. In a video message,
Microsoft CEO sach And Nadala compared the moment to the
Industrial revolution.
Speaker 4 (01:07):
We're doubling down on our investment in the UK.
Speaker 5 (01:10):
We will invest more than thirty billion dollars over four
years to build on the foundation we have already laid here,
our largest investment in the country ever.
Speaker 3 (01:22):
Such a nadalas joining Trump on the visit alongside several
other leading tech CEOs, including in videos Jensen Wang and
open Ai Sam Altman.
Speaker 2 (01:30):
But the visit may not achieve all of our Minsesekere
Starmer's aims. Bloomberg has learned that the UK has quietly
shelved its talks with the US on eliminating tariffs on
British steel. It's a blow to the industry, which has
been waiting for months for the removal of the twenty
five percent levy, which had been agreed in earlier talks.
The strategic decision comes even as President Trump signaled that
(01:53):
he was open to some concessions on trade as he
boarded Air Force one for the trip.
Speaker 6 (02:00):
They say winter Parsil is the ulphimate, right, so it's
going to be nice. But basically they're also on trade.
They want to seem they can refine a trade deal
a little bit. We've made a deal and it's a
great deal, and I'm into helping them our country is
doing very well.
Speaker 4 (02:15):
We've never done this well.
Speaker 6 (02:16):
We're making having brillions of dollars coming represent the tariffs.
I they'd like to seem they could get a little
bit bettery, just so we'll cop to them.
Speaker 2 (02:25):
Those comments from the US President came as sources that
told Bloomberg that negotiate US from the UK will continue
talks with their uspers to act steel tariffs over time.
Speaker 7 (02:35):
Well.
Speaker 3 (02:35):
Much of the focus of the US President's visit to
the UK is on the economic benefits for Britain. The
British drug maker maker GSK has also announced plans to
invest thirty billion dollars in America over the next five years.
The US accounts for about fifty percent of the company's revenue.
Prime Minister care Starmer has lent his support to GSK's investment,
(02:56):
highlighting it as an example of UK US collaboration. The
move follows similar announcements by other pharmaceutical companies after Trump
threatened tariffs and important drugs and complained about high prices
paid by Americans.
Speaker 2 (03:10):
Well, the King and Queen are preparing for a full
day hosting Donald and Milania Trump on their state visit
at Windsor Castle. The US President has been invited to
inspect the Guard of Honor with the King. They'll also
view a ceremonial drill that concludes with a military jet
fly past. Kim Darrek, one of the UK's former ambassadors
of the United States, says this kind of welcome means
(03:32):
a lot to the President.
Speaker 7 (03:34):
Trump does revere is fascinating by the royal family. When
it came over first state business, he brought his whole family,
which is like saying to them, look, look, I've immediate.
Speaker 2 (03:46):
But the pageantry that Derek mentions might be overshadowed by
the ongoing controversy around public figures with ties to p
file Jeffrey Epstein. Last week, his Starma fired his ambassador
to the US, Peter Mandelson, over the the issue, which
has also dogged President Trump.
Speaker 3 (04:03):
The euro hit its strongest level in four years yesterday
as traders prepare for a Federal Reserve interest rate cut.
Speaker 4 (04:09):
Today, the currency rose.
Speaker 3 (04:12):
As the Bloomberg on trading yesterday, as a Bloomberg dollar
spot index edged closer to this year's lows. Officials are
expected to lower borrowing costs for the first time in
twenty twenty five, with a quarter point reduction seen as
the most likely decision. Alicia Levine is head of Investment
Strategy and Equities at bny Mellon Wealth Management.
Speaker 8 (04:32):
If that's going to cut, it looks perhaps more justified
than it did two or three months ago when this
conversation started in earnest And look, the market's already priced
in something like one hundred and forty basis points into
the end of the next year, So it's already.
Speaker 4 (04:45):
In the market BN wise.
Speaker 3 (04:47):
Alicia Levine, speaking there as the cooling labor market in
the US leads some traders to increase their bets that
a souring economic outlook could prompt at least one half
point interest rate cut across this year's A policy meetings.
Speaker 2 (05:02):
Now two other stories, TikTok's US operations would be bought
by a consortium of US companies under a deal to
be discussed between President Trump and China's Shijingping. The framework
agreement involves a US based version of the app backed
by firms including Oracle, private actuity firms, Silver Lake and
(05:24):
Venture Capital Company Anderson. US trade representative Jameison Greer says
that the deal represents a step forward.
Speaker 1 (05:31):
The TikTok saga has gone on for a long time.
Toward the end of his first term, President Trump set
about to solve it.
Speaker 4 (05:38):
Over the course of the Biden.
Speaker 1 (05:39):
Administration, they grappled with this issue but could not solve it.
But as of yesterday, we believe that President Trump has
in fact resolved this issue.
Speaker 2 (05:48):
US Trade Representative Jamison Greer there speaking to Fox News.
Under an initial agreement by Dance's stake in TikTok would
fall below twenty percent in order to satisfy a twenty
twenty four US law that requires the Beijing based company
to divest. The deal values TikTok's US operations at about
(06:09):
thirty five to forty billion dollars.
Speaker 3 (06:12):
The cyber attack that brought Jaguar Landrovers plans to a
standstill earlier this month is forcing some European parts makers
to pause or scale back their own production. Bloomberg's Micaalcubala
has more.
Speaker 9 (06:24):
It's been over two weeks since the carmaker announced the
hack had severely disrupted its operations. That's also a meant
halting production at companies like Eberschbacher, a German exhaust maker.
It's put around thirty staff at its plant in Slovakia
on holiday or on short time work with reduced pay.
Speaker 4 (06:40):
Others have been hit too.
Speaker 9 (06:42):
The CEO of quality control firm Holland Warm nervousness is
growing among contractors exposed to Jaguar land Rover JLR says
operations won't restart until at least September twenty fourth and
as warned with some data may have been compromised in Brussels. Michaalkubala,
Bloomberg Radio and those are your top stories on the markets.
(07:02):
The Mscish Pacific Index is trading slightly higher this morning
ahead of the Federal Reserve interest rate decision.
Speaker 4 (07:08):
SMP mini futures are a little bit weaker today.
Speaker 3 (07:11):
The ten year treasury yield upper basis point at four
point zero two percent.
Speaker 4 (07:15):
The euro touch tweaker against.
Speaker 3 (07:16):
The dollar after hitting that four year high yesterday, but
still above one eighteen at one eighteen fifty eight. As
we're looking at European stock futures pointing a little higher,
up three tenths for eurostocks fifty futures.
Speaker 2 (07:27):
Well, in a moment, we're going to bring you more
on how kiss Starma and the UK government are going
to try to play Donald Trump's state visit to the UK,
and we'll also look ahead to what markets are expecting
from the Federal Reserve decision. Also later today. Another story
that's caught urri though, of course, is about the strategies
the tactics that big CEOs have been using to charm
(07:50):
Donald Trump and maybe something of a lesson for the
Prime Minister Kiss Starmer.
Speaker 4 (07:55):
Yeah. Indeed, so.
Speaker 3 (07:55):
Bloomberg's West Coast Silver has been writing about the meetings
that Donald Trump has had with some big CEOs and
how it's unusual that, of course, we get so much
of an insight into what a president is thinking because
Donald Trump uses social media so much, but also has
so many interactions with journalists where he makes quite i
suppose heartfelt comments. It appears about how he feels about
(08:17):
certain subjects. So this gives people who are trying to
i suppose win over Donald Trump plenty of material to
work with. We know that he loves prizes, for example,
so we had Apple CEO Tim Cook making a special
trophy for Trump when he came to the White House
for talks over chip tariffs, so that helped his company
potentially escape damaging levies as well. Alongside the announcement of
(08:39):
a lot of money for US manufacturing too. Now, as
West points out, there's nothing inherently wrong with the government
deciding to back certain industries or companies, think about France
and nuclear power. But he does speak to the Harvard
Business School professor Rebecca Henderson, who says these deals are
often made in haste. She doesn't believe they'll yield significant
benefits to the US economy. And for company bosses, there
(09:01):
are cautionary tales in here as well. Just because you've
won over Donald Trump once doesn't mean you're going to
stay in his favor over the long term. Look at
Hyundai investing billions of dollars in US manufacturers, but Trump's
immigration force has still raided a Hyundai LG electric vehicle
battery plant under construction in Georgia, arresting hundreds of foreign
engineers working there as well.
Speaker 4 (09:21):
Yeah.
Speaker 2 (09:22):
No, I get your point about the stream of consciousness
that we get from the US president, and that does
give people lots of insights. And of obviously the gold
plated iPhone that Tim Cook handed over in this kind
of great show in the Oval Office. I mean, I'm
just wondering what is the UK going to do? I mean,
all of the pageantry. You're going to see it all
(09:42):
at Windsor Castle at also even at Checkers. I suspect
which is the country residence of the Prime Minister where
the kind of political bit of this visit is going
to take place. I mean, what do you think the
gifts are going to be again kind of is it
going to be tartan something along Scottish lines? Sure, spread biscuits, yeah,
but I mean maybe girld plated ones.
Speaker 4 (10:03):
I don't know.
Speaker 2 (10:03):
I mean, look, some flattery has clearly worked for the UK,
but you know, what does it mean in terms of
economic growth and the other things written?
Speaker 4 (10:10):
Really once?
Speaker 2 (10:11):
I mean, it's very tricky, it hugely important relationship.
Speaker 3 (10:15):
Well, indeed, let's bring in bloom your opinion columist Rosa
Prince for more on this as well, or as you'll
be watching all the details of this very closely too.
I wonder if we think about it in the context
of we're starting this trip with the raft of announcements
of really big amounts of money talked about being invested
in the UK as well. From Kiris Charmer's point of view,
is this setting him up for a very successful trip
(10:37):
with Donald Trump?
Speaker 10 (10:38):
Well, he's definitely hoping. So we did see some really
big announcements coming over in the last few days, as
you say, about thirty billion pounds of investment, and particularly
in the tech space. Some talk that investment in AI
could boost the British economy by as much as ten percent. Now,
that would be really great for a Prime minister who
(11:00):
has found the country and something of an economic doom
loop and has said quite a few times that he's
hoping to grow our way out of this trouble.
Speaker 4 (11:09):
So all good news on that front.
Speaker 2 (11:11):
Yeah, But then early on the idea of getting steel
tariffs wound back or lowered, that that has been put aside.
I mean, the steel industry is not that significant for
the UK. Is that important or is it just a
signal that there are a lot of difficult issues still
on the table.
Speaker 10 (11:31):
It's not that big in terms of how of its
kind of economic clout, but it's quite a sort of
totemic industry for Britain, particularly because the government has invested
and really sort of taken over some of Britain steels.
Now we're told that the sort of reduction to zero
tariffs that Britain had hoped for that had been talked
(11:53):
about a few months ago isn't going to happen. And
the main reason for that was that it didn't take
into account that the kind of quota system that was
involved in this, so it would have been it would
have meant that some companies were spared tariffs while others
were going to get the full fifty percent whack. So
(12:15):
the deal is now that Britain's going to get twenty
five percent a relief, which is better than most of
the world, so a small win. I think Britain had
hoped for more. One good thing about Donald Trump is,
as you've been saying, you know, he's really unpredictable. He's
really mercurial. As he got on the plane last night,
he actually brought up tariffs, which I think the negotiators
(12:36):
hadn't expected. He said, oh, maybe we can get them
a better deal. So I think Britain will be hoping
perhaps they can reopen something that they had been told
by their counterparts in the States wasn't going to happen.
Speaker 3 (12:46):
Okay, Rosa Prince, Bloomberg opinion columnist, thank you very much
for joining us. You can read more from Rosa by
the way at Bloomberg Dot Calm slash Opinion.
Speaker 4 (12:55):
Stay with us.
Speaker 3 (12:56):
More from Bloomberg Daybreak Europe coming up after this.
Speaker 2 (13:00):
Okay, so that's one major even that's preoccupying people in Britain.
But of course today's Federal Reserve decision is expected to
dominate markets, and we'll likely see the first interest rate
cut of the year, as recent data has highlighted a
weakening labor market in America. Joining us now our executive
editor for Asian Markets, Paul Dobson, Paul, Good morning, Marcus
(13:23):
fully pricing in twenty five basis points cut the likelihood
of a surprise from Powell today? What's your view on
the fifty basis point debate?
Speaker 11 (13:31):
My view and the market's view and the economist view
is that that's unlikely to happen. Not many people would
expect it given what we've heard from the Fed policymakers.
We will have Myron joining the meeting, and he's lately
to push for something more aggressive, and a couple of
those other committee members made dissent in an express a
desire to get fifty. But the lightlihood of the majority
(13:54):
being persuaded that that's what's needed right now seems pretty
low given the data that we've seen y calling of
the labor market. But yes, there's also still those concerns
about sticky inflation, so the Fed won't want to act
too fast, probably, you know, move in a more moderate
way if it possibly can.
Speaker 3 (14:11):
We'll talk about the economic projections next, Paul, What will
markets be watching out for in the dots?
Speaker 4 (14:17):
Perhaps the looming question?
Speaker 11 (14:18):
Mark, Yeah, I think there's there's a few things to
pick through there. In terms of the economic projections themselves,
it seems it looks, based on the analysis from Bloomberg Economics,
that they'd be likely to leave both the outlook for
inflation and for growth more or less where it was
the last meeting, So not a great deal of change
in that, but there is going to be that shift
(14:39):
towards a signal of more cuts. Most likely people would
be paying attention to the dots to see whether there's
an indication that there would be just one more cut
this year or a second cut starting to come into
some of the forecasts. Likewise, how many will we see
for next year and how soon could there be some
more into the first quarter, to see sort of how
(15:01):
aggressive the Fed is likely to be in that path
based on the views of the current members which is
a little bit in flux. Of course, some of the
members will be dropping off over the next year. And
the other thing that I thought was really interesting the
Bloomberg Economics is talking about is the possibility that a
couple of the dots may even come in higher for
the rest of this year than where the FED target
(15:21):
will be after lightly cut. I was sort of silent
dissent against that idea that the FED should be cutting
right now.
Speaker 2 (15:27):
Interesting, how do you think that markets are going to react?
I mean the position at the moment, the euro hitting
a four year high, weakening of the dollar, gold also
close to another record.
Speaker 11 (15:37):
It's been records, records, records, if you look at the
equities market, if you look at gold, if you look
at incredibly tight credit spreads as well. So there's a
lot baked in, you know, the optimism that the FED
is going to be beginning a cutting cycle. It's likely
probably the FED chair Power will in his press conference
moderate that somewhat. I think he will probably mention the
(16:00):
risks on the inflation side as well as the slowing
labor data and try to tread that line quite carefully.
But the market is probably on the lookout for that
already and what it really cares about is are there
more cuts coming? And the answer seems to be yes,
and in which case you know you might get it
by the ruma cell effect, it's kind of a move.
But the project trajectory, I think what you identified their
(16:22):
caroline with the dollar weakening against the euro weakening right
across the board is the one thing that seems most
certain the traders are focusing on through the rest of
this year.
Speaker 3 (16:34):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:40):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (16:47):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (16:52):
Our flagship New York station is also available on your
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I'm Caroline Hepka and.
Speaker 3 (17:01):
I'm Stephen Carol. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bluemberg Daybacurate podcast. Good morning, It's Wednesday,
the seventeenth of September. I'm Caroline Hepka in London and.
Speaker 3 (00:16):
I'm Stephen Caroline Brussels. Coming up today, Microsoft, Open AI,
and Vidia and others commit to investing tens of billions
of pounds in Britain during Donald Trump's state visit.
Speaker 2 (00:27):
The US President will have an audience with the King
as the UK government shelves talks of eliminating steel tariffs.
Speaker 3 (00:34):
Plus is fifty the new twenty five Traders boost bets
on a half point interest rate cut from the Federal
Reserve by the end of the year.
Speaker 2 (00:42):
Let's start with a roundup of our top stories. Our
top stories.
Speaker 3 (00:45):
Some of the world's largest technology firms have announced tens
of billions of pounds of UK investment to coincide with
US President Donald trump state visit. Microsoft and Video and
Google are among the companies who say they will spend
billions building out Britain AI infrastructure. In a video message,
Microsoft CEO sach And Nadala compared the moment to the
Industrial revolution.
Speaker 4 (01:07):
We're doubling down on our investment in the UK.
Speaker 5 (01:10):
We will invest more than thirty billion dollars over four
years to build on the foundation we have already laid here,
our largest investment in the country ever.
Speaker 3 (01:22):
Such a nadalas joining Trump on the visit alongside several
other leading tech CEOs, including in videos Jensen Wang and
open Ai Sam Altman.
Speaker 2 (01:30):
But the visit may not achieve all of our Minsesekere
Starmer's aims. Bloomberg has learned that the UK has quietly
shelved its talks with the US on eliminating tariffs on
British steel. It's a blow to the industry, which has
been waiting for months for the removal of the twenty
five percent levy, which had been agreed in earlier talks.
The strategic decision comes even as President Trump signaled that
(01:53):
he was open to some concessions on trade as he
boarded Air Force one for the trip.
Speaker 6 (02:00):
They say winter Parsil is the ulphimate, right, so it's
going to be nice. But basically they're also on trade.
They want to seem they can refine a trade deal
a little bit. We've made a deal and it's a
great deal, and I'm into helping them our country is
doing very well.
Speaker 4 (02:15):
We've never done this well.
Speaker 6 (02:16):
We're making having brillions of dollars coming represent the tariffs.
I they'd like to seem they could get a little
bit bettery, just so we'll cop to them.
Speaker 2 (02:25):
Those comments from the US President came as sources that
told Bloomberg that negotiate US from the UK will continue
talks with their uspers to act steel tariffs over time.
Speaker 7 (02:35):
Well.
Speaker 3 (02:35):
Much of the focus of the US President's visit to
the UK is on the economic benefits for Britain. The
British drug maker maker GSK has also announced plans to
invest thirty billion dollars in America over the next five years.
The US accounts for about fifty percent of the company's revenue.
Prime Minister care Starmer has lent his support to GSK's investment,
(02:56):
highlighting it as an example of UK US collaboration. The
move follows similar announcements by other pharmaceutical companies after Trump
threatened tariffs and important drugs and complained about high prices
paid by Americans.
Speaker 2 (03:10):
Well, the King and Queen are preparing for a full
day hosting Donald and Milania Trump on their state visit
at Windsor Castle. The US President has been invited to
inspect the Guard of Honor with the King. They'll also
view a ceremonial drill that concludes with a military jet
fly past. Kim Darrek, one of the UK's former ambassadors
of the United States, says this kind of welcome means
(03:32):
a lot to the President.
Speaker 7 (03:34):
Trump does revere is fascinating by the royal family. When
it came over first state business, he brought his whole family,
which is like saying to them, look, look, I've immediate.
Speaker 2 (03:46):
But the pageantry that Derek mentions might be overshadowed by
the ongoing controversy around public figures with ties to p
file Jeffrey Epstein. Last week, his Starma fired his ambassador
to the US, Peter Mandelson, over the the issue, which
has also dogged President Trump.
Speaker 3 (04:03):
The euro hit its strongest level in four years yesterday
as traders prepare for a Federal Reserve interest rate cut.
Speaker 4 (04:09):
Today, the currency rose.
Speaker 3 (04:12):
As the Bloomberg on trading yesterday, as a Bloomberg dollar
spot index edged closer to this year's lows. Officials are
expected to lower borrowing costs for the first time in
twenty twenty five, with a quarter point reduction seen as
the most likely decision. Alicia Levine is head of Investment
Strategy and Equities at bny Mellon Wealth Management.
Speaker 8 (04:32):
If that's going to cut, it looks perhaps more justified
than it did two or three months ago when this
conversation started in earnest And look, the market's already priced
in something like one hundred and forty basis points into
the end of the next year, So it's already.
Speaker 4 (04:45):
In the market BN wise.
Speaker 3 (04:47):
Alicia Levine, speaking there as the cooling labor market in
the US leads some traders to increase their bets that
a souring economic outlook could prompt at least one half
point interest rate cut across this year's A policy meetings.
Speaker 2 (05:02):
Now two other stories, TikTok's US operations would be bought
by a consortium of US companies under a deal to
be discussed between President Trump and China's Shijingping. The framework
agreement involves a US based version of the app backed
by firms including Oracle, private actuity firms, Silver Lake and
(05:24):
Venture Capital Company Anderson. US trade representative Jameison Greer says
that the deal represents a step forward.
Speaker 1 (05:31):
The TikTok saga has gone on for a long time.
Toward the end of his first term, President Trump set
about to solve it.
Speaker 4 (05:38):
Over the course of the Biden.
Speaker 1 (05:39):
Administration, they grappled with this issue but could not solve it.
But as of yesterday, we believe that President Trump has
in fact resolved this issue.
Speaker 2 (05:48):
US Trade Representative Jamison Greer there speaking to Fox News.
Under an initial agreement by Dance's stake in TikTok would
fall below twenty percent in order to satisfy a twenty
twenty four US law that requires the Beijing based company
to divest. The deal values TikTok's US operations at about
(06:09):
thirty five to forty billion dollars.
Speaker 3 (06:12):
The cyber attack that brought Jaguar Landrovers plans to a
standstill earlier this month is forcing some European parts makers
to pause or scale back their own production. Bloomberg's Micaalcubala
has more.
Speaker 9 (06:24):
It's been over two weeks since the carmaker announced the
hack had severely disrupted its operations. That's also a meant
halting production at companies like Eberschbacher, a German exhaust maker.
It's put around thirty staff at its plant in Slovakia
on holiday or on short time work with reduced pay.
Speaker 4 (06:40):
Others have been hit too.
Speaker 9 (06:42):
The CEO of quality control firm Holland Warm nervousness is
growing among contractors exposed to Jaguar land Rover JLR says
operations won't restart until at least September twenty fourth and
as warned with some data may have been compromised in Brussels. Michaalkubala,
Bloomberg Radio and those are your top stories on the markets.
(07:02):
The Mscish Pacific Index is trading slightly higher this morning
ahead of the Federal Reserve interest rate decision.
Speaker 4 (07:08):
SMP mini futures are a little bit weaker today.
Speaker 3 (07:11):
The ten year treasury yield upper basis point at four
point zero two percent.
Speaker 4 (07:15):
The euro touch tweaker against.
Speaker 3 (07:16):
The dollar after hitting that four year high yesterday, but
still above one eighteen at one eighteen fifty eight. As
we're looking at European stock futures pointing a little higher,
up three tenths for eurostocks fifty futures.
Speaker 2 (07:27):
Well, in a moment, we're going to bring you more
on how kiss Starma and the UK government are going
to try to play Donald Trump's state visit to the UK,
and we'll also look ahead to what markets are expecting
from the Federal Reserve decision. Also later today. Another story
that's caught urri though, of course, is about the strategies
the tactics that big CEOs have been using to charm
(07:50):
Donald Trump and maybe something of a lesson for the
Prime Minister Kiss Starmer.
Speaker 4 (07:55):
Yeah. Indeed, so.
Speaker 3 (07:55):
Bloomberg's West Coast Silver has been writing about the meetings
that Donald Trump has had with some big CEOs and
how it's unusual that, of course, we get so much
of an insight into what a president is thinking because
Donald Trump uses social media so much, but also has
so many interactions with journalists where he makes quite i
suppose heartfelt comments. It appears about how he feels about
(08:17):
certain subjects. So this gives people who are trying to
i suppose win over Donald Trump plenty of material to
work with. We know that he loves prizes, for example,
so we had Apple CEO Tim Cook making a special
trophy for Trump when he came to the White House
for talks over chip tariffs, so that helped his company
potentially escape damaging levies as well. Alongside the announcement of
(08:39):
a lot of money for US manufacturing too. Now, as
West points out, there's nothing inherently wrong with the government
deciding to back certain industries or companies, think about France
and nuclear power. But he does speak to the Harvard
Business School professor Rebecca Henderson, who says these deals are
often made in haste. She doesn't believe they'll yield significant
benefits to the US economy. And for company bosses, there
(09:01):
are cautionary tales in here as well. Just because you've
won over Donald Trump once doesn't mean you're going to
stay in his favor over the long term. Look at
Hyundai investing billions of dollars in US manufacturers, but Trump's
immigration force has still raided a Hyundai LG electric vehicle
battery plant under construction in Georgia, arresting hundreds of foreign
engineers working there as well.
Speaker 4 (09:21):
Yeah.
Speaker 2 (09:22):
No, I get your point about the stream of consciousness
that we get from the US president, and that does
give people lots of insights. And of obviously the gold
plated iPhone that Tim Cook handed over in this kind
of great show in the Oval Office. I mean, I'm
just wondering what is the UK going to do? I mean,
all of the pageantry. You're going to see it all
(09:42):
at Windsor Castle at also even at Checkers. I suspect
which is the country residence of the Prime Minister where
the kind of political bit of this visit is going
to take place. I mean, what do you think the
gifts are going to be again kind of is it
going to be tartan something along Scottish lines? Sure, spread biscuits, yeah,
but I mean maybe girld plated ones.
Speaker 4 (10:03):
I don't know.
Speaker 2 (10:03):
I mean, look, some flattery has clearly worked for the UK,
but you know, what does it mean in terms of
economic growth and the other things written?
Speaker 4 (10:10):
Really once?
Speaker 2 (10:11):
I mean, it's very tricky, it hugely important relationship.
Speaker 3 (10:15):
Well, indeed, let's bring in bloom your opinion columist Rosa
Prince for more on this as well, or as you'll
be watching all the details of this very closely too.
I wonder if we think about it in the context
of we're starting this trip with the raft of announcements
of really big amounts of money talked about being invested
in the UK as well. From Kiris Charmer's point of view,
is this setting him up for a very successful trip
(10:37):
with Donald Trump?
Speaker 10 (10:38):
Well, he's definitely hoping. So we did see some really
big announcements coming over in the last few days, as
you say, about thirty billion pounds of investment, and particularly
in the tech space. Some talk that investment in AI
could boost the British economy by as much as ten percent. Now,
that would be really great for a Prime minister who
(11:00):
has found the country and something of an economic doom
loop and has said quite a few times that he's
hoping to grow our way out of this trouble.
Speaker 4 (11:09):
So all good news on that front.
Speaker 2 (11:11):
Yeah, But then early on the idea of getting steel
tariffs wound back or lowered, that that has been put aside.
I mean, the steel industry is not that significant for
the UK. Is that important or is it just a
signal that there are a lot of difficult issues still
on the table.
Speaker 10 (11:31):
It's not that big in terms of how of its
kind of economic clout, but it's quite a sort of
totemic industry for Britain, particularly because the government has invested
and really sort of taken over some of Britain steels.
Now we're told that the sort of reduction to zero
tariffs that Britain had hoped for that had been talked
(11:53):
about a few months ago isn't going to happen. And
the main reason for that was that it didn't take
into account that the kind of quota system that was
involved in this, so it would have been it would
have meant that some companies were spared tariffs while others
were going to get the full fifty percent whack. So
(12:15):
the deal is now that Britain's going to get twenty
five percent a relief, which is better than most of
the world, so a small win. I think Britain had
hoped for more. One good thing about Donald Trump is,
as you've been saying, you know, he's really unpredictable. He's
really mercurial. As he got on the plane last night,
he actually brought up tariffs, which I think the negotiators
(12:36):
hadn't expected. He said, oh, maybe we can get them
a better deal. So I think Britain will be hoping
perhaps they can reopen something that they had been told
by their counterparts in the States wasn't going to happen.
Speaker 3 (12:46):
Okay, Rosa Prince, Bloomberg opinion columnist, thank you very much
for joining us. You can read more from Rosa by
the way at Bloomberg Dot Calm slash Opinion.
Speaker 4 (12:55):
Stay with us.
Speaker 3 (12:56):
More from Bloomberg Daybreak Europe coming up after this.
Speaker 2 (13:00):
Okay, so that's one major even that's preoccupying people in Britain.
But of course today's Federal Reserve decision is expected to
dominate markets, and we'll likely see the first interest rate
cut of the year, as recent data has highlighted a
weakening labor market in America. Joining us now our executive
editor for Asian Markets, Paul Dobson, Paul, Good morning, Marcus
(13:23):
fully pricing in twenty five basis points cut the likelihood
of a surprise from Powell today? What's your view on
the fifty basis point debate?
Speaker 11 (13:31):
My view and the market's view and the economist view
is that that's unlikely to happen. Not many people would
expect it given what we've heard from the Fed policymakers.
We will have Myron joining the meeting, and he's lately
to push for something more aggressive, and a couple of
those other committee members made dissent in an express a
desire to get fifty. But the lightlihood of the majority
(13:54):
being persuaded that that's what's needed right now seems pretty
low given the data that we've seen y calling of
the labor market. But yes, there's also still those concerns
about sticky inflation, so the Fed won't want to act
too fast, probably, you know, move in a more moderate
way if it possibly can.
Speaker 3 (14:11):
We'll talk about the economic projections next, Paul, What will
markets be watching out for in the dots?
Speaker 4 (14:17):
Perhaps the looming question?
Speaker 11 (14:18):
Mark, Yeah, I think there's there's a few things to
pick through there. In terms of the economic projections themselves,
it seems it looks, based on the analysis from Bloomberg Economics,
that they'd be likely to leave both the outlook for
inflation and for growth more or less where it was
the last meeting, So not a great deal of change
in that, but there is going to be that shift
(14:39):
towards a signal of more cuts. Most likely people would
be paying attention to the dots to see whether there's
an indication that there would be just one more cut
this year or a second cut starting to come into
some of the forecasts. Likewise, how many will we see
for next year and how soon could there be some
more into the first quarter, to see sort of how
(15:01):
aggressive the Fed is likely to be in that path
based on the views of the current members which is
a little bit in flux. Of course, some of the
members will be dropping off over the next year. And
the other thing that I thought was really interesting the
Bloomberg Economics is talking about is the possibility that a
couple of the dots may even come in higher for
the rest of this year than where the FED target
(15:21):
will be after lightly cut. I was sort of silent
dissent against that idea that the FED should be cutting
right now.
Speaker 2 (15:27):
Interesting, how do you think that markets are going to react?
I mean the position at the moment, the euro hitting
a four year high, weakening of the dollar, gold also
close to another record.
Speaker 11 (15:37):
It's been records, records, records, if you look at the
equities market, if you look at gold, if you look
at incredibly tight credit spreads as well. So there's a
lot baked in, you know, the optimism that the FED
is going to be beginning a cutting cycle. It's likely
probably the FED chair Power will in his press conference
moderate that somewhat. I think he will probably mention the
(16:00):
risks on the inflation side as well as the slowing
labor data and try to tread that line quite carefully.
But the market is probably on the lookout for that
already and what it really cares about is are there
more cuts coming? And the answer seems to be yes,
and in which case you know you might get it
by the ruma cell effect, it's kind of a move.
But the project trajectory, I think what you identified their
(16:22):
caroline with the dollar weakening against the euro weakening right
across the board is the one thing that seems most
certain the traders are focusing on through the rest of
this year.
Speaker 3 (16:34):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:40):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (16:47):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:52):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleventh thirty.
I'm Caroline Hepka and.
Speaker 3 (17:01):
I'm Stephen Carol. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe.
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