July 29, 2025 • 17 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) A gunman killed at least four people and himself at an office tower that houses Blackstone Inc., Rudin Management, the National Football League and KPMG among others, sparking hours of chaos and fear in Midtown Manhattan on Monday evening.
(2) The European Union dodged an imminent trade war with the US this week, but markets and a growing chorus of critics have dispelled early hopes that the deal will bring a sense of stability back to transatlantic relations.
(3) Commerce Secretary Howard Lutnick said a 90-day extension of a trade truce with China was a likely outcome with negotiations between the two countries underway in Stockholm.
(4) President Donald Trump said he would shorten his timeline for Russian leader Vladimir Putin to reach a truce with Ukraine or face potential economic penalties, heightening pressure on Moscow to bring the fighting to a halt.
(5) The rising price of products such as tea and meat pushed UK food inflation to its highest level in 17 months, as retailers blamed the Labour government’s first budget for driving up costs.
(6) Prime Minister Keir Starmer has been urged by a group of economists including Thomas Piketty to implement a wealth tax they claim can raise tens of billions of pounds for the UK treasury.
Podcast Conversation: Boxing, Backflipping Robots Rule at China’s Biggest AI Summit
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bluebig Day Baqut podcast. Good morning, It's Tuesday,
the twenty ninth of July. I'm Caroline hepkea in London and.
Speaker 1 (00:16):
I'm Stephen Carolin Brussels. Coming up today. At least five
people are dead, including the gunman, after a shooting at
a New York City office tower that houses firms including
Blackstone and KPMG.
Speaker 2 (00:27):
EU industries and politicians voice dissatisfaction with the fifteen percent
US tariff deal as leaders on both sides rush to
finalize the details.
Speaker 1 (00:38):
Plus dollar drift global shift, while the greenbacks waning appeal
as prompting investors to take a fresh look at emerging markets.
Speaker 2 (00:47):
Let's start with the roundup of our top stories.
Speaker 1 (00:49):
A gunman has killed at least four people and himself
at a New York City office tower that houses firms
including Blackstone and KPMG. Authorities identified the man as twenty
seven year old Jane Tomorrow from Nevada. His body was
found on the thirty third floor, which is occupied by
the real estate firm Rudin. Blackstone staff who work one
floor below pushed furniture in front of doors to barricade
(01:12):
themselves in during the attack. New York Police Commissioner Jessica
Tish says investigators are now working to understand a motive.
Speaker 3 (01:21):
According to our law enforcement partners in Las Vegas, mister
Timora has a documented mental health history. His motives are
still under investigation, and we are working to understand why
he targeted this particular location.
Speaker 1 (01:36):
Jessica Tish, speaking after the attack set off a chaotic
scene in mid ten Manhattan, with firms located nearby, including
Jeffreys and Citadel, going into lockdown.
Speaker 2 (01:46):
In trade news, a growing chorus of critics have taken
aim at the deal the EU struck with President Trump
for a fifteen percent tariff on most of its exports
to the US. Clemens Foost, president of Germany's EPO in
Institute for Economic Research, called the deal a humiliation Germany's chances.
Fredrick murd who initially welcomed the deal, warned the economy
(02:08):
would suffer significant damage from the tariffs, whilst the French
Prime Minister for Roswa Bairru went further say that the
Bloc had opted for submission. But despite the critics, the
EU's trade chief Maras Sefkevich has defended the deal.
Speaker 4 (02:25):
If I were to sum up this US agreement in
one sentence, I would say it brings renewed stability and
opens door to strategic collaboration. This is the result of
a month of genuine and relentless efforts.
Speaker 2 (02:42):
Maras Chefchevich was speaking as the EU and US are
now seeking to agree a non legally binding joint statement
by Friday that will expand on the elements negotiated over
the weekend. Once that statement is finalized, the US will
begin lowering its tariffs on specific sectors well.
Speaker 1 (03:02):
The US Commerce Secretary Howard Lutnick meanwhile, says a further
ninety day extension of a trade truce with China is
a likely outcome of talks between the two countries in Stockholm.
The current ninety day tariff cooling period between the US
and China is due to end on the twelfth of August.
In an interview with Fox News, Lutnick said it could
continue beyond that date.
Speaker 5 (03:22):
They're talking right now, but the decision maker, of course,
with President Trump. I'm sure the people with who are
speaking with China, We're going to go discuss with President Trump.
How he wants to play it. He's got an excellent
relationship with President she and I think we'll leave that
to Donald Trump to decide how he wants to do it.
Is that a likely outcome, Sure, it seems that way,
but let's leave it to President Trump to decide.
Speaker 1 (03:45):
US Commerce Secretary Howard Lutnick speaking to Fox News as
negotiations continue on issues including duties tied to fentanyl trafficking
and Chinese purchases of sanctioned Russian and Iranian oil. Lutnik
also said a delegation from South Korea flew to Scotland
to meet Donald Trump, aiming to strike a deal while
he's on a trip there.
Speaker 2 (04:06):
Russian President of Vladimir Putin is facing further pressure to
agree a truth with Ukraine after President Trump announced a
new deadline of ten or twelve days to end the war.
During talks with UK Prime Minister Kirstarma in Scotland, Trump
told reporters there's no reason to wait, suggesting Moscow could
face potential economic consequences if it fails to bring the
(04:30):
conflict to an end.
Speaker 6 (04:32):
That are very disappointed. I'm disappointed in President of Putin,
very disappointed at him. So we're going to have to look,
and I'm going to reduce that fifty days that I
gave him to a lesser number, because I think I
already know the answer what's going to happen.
Speaker 2 (04:47):
President Trump had initially threatened a fifty day deadline for
Russia to end hostilities against Ukraine. In mid July, Vladimir
Putin stepped up missile and drone attacks on Ukrainian cities afterwards.
The Kremlin hasn't commented publicly on Trump's new deadline, though
Russia's rubles sank to its lowest level since mid May
following the announcement.
Speaker 1 (05:09):
UK food inflation has at its highest and seventeen months
due to rising prices for products like tea and meat.
According to the British Retail Consortium, food bills climbed by
four percent in July compared with a year earlier, the
fastest increase since February twenty twenty four. Retailers are blaming
the government's increase in the minimum wage and higher payroll
(05:29):
taxes for the jump, while the BRC also attributed the
changes to tighter global supplies. The data confirmed that a
period of falling prices and shops has come to an end.
Overall shop prices were up for a second month in
a row.
Speaker 2 (05:44):
A group of economists is urging the British Prime Minister
to implement a wealth tax on assets over ten million pounds.
Their calls come as the government looks for ways to
shore up the fragile public finances in the UK, but
the business and trade sector Jonathan Bernolds recently dismissed the
idea as quote daft. Bloomberg's Tea Adebayo has more.
Speaker 7 (06:06):
Chancellor Rachel Reeves is potentially facing a fiscal whole as
large as thirty billion pounds ahead of her autumn budget.
The answer to her economic woes a wealth tax, according
to thirty largely left leaning economists. The group, which includes
the likes of prominent figures including JRT. Gosh and har
(06:27):
Jun Chang, say the levy could raise enormous sums of money.
Critics of the claim say the move risks dampening entrepreneurship
and triggering in exodus of the rich. Opinion polls suggest
Brits are supportive of wealth taxes. In London. Tea at
a Bio Bloomberg.
Speaker 1 (06:45):
Radio and those are your top stories on the markets today.
The Mscish Pacific index down eight tenths of one percent.
Eurostocks fifty features are two tenths higher, but the dollar
is holding on to its strength. Yesterday trading flat on
the Bloomberg Dollar Spot Index, and the US euro was
at one point fifteen eighty five, the pound at one
thirty three forty eight against the dollar. The ten yure
(07:06):
Treasury eeal this morning dinnabases point at four point four percent,
as we are watching gold prices as well, upsightly on
the day three thy three hundred and sixteen dollars triats.
Speaker 2 (07:17):
Now, in a moment, we'll bring you our reporting on
how the dollar's waning appeal for investors is sparking a
revival in emerging markets, and will also discuss the variety
of robots at China's annual AI conference.
Speaker 1 (07:30):
First, let's bring you the latest on that shooting in
New York City where a gunman killed four people and
shot himself at an office building in mid ten Manhattan.
Our national security reporter Miles Miller was at the press
conference following the shooting. We spoke to him a little
earlier and started by asking him about how the events unfolded.
Speaker 8 (07:47):
Well, Yes, the first calls came in just after six thirty,
police say surveillance video shows the gunman, identified as Shane
to Mora of Las Vegas, stepping out of a black
BMW parked along Park Avenue near five second Street. He's
carrying a large M four style rifle and enters the
lobby of three point forty five Park Avenue, which is
(08:07):
a high rise that houses Blackstone, the NFL, and KPMG.
He immediately opens fire, targeting an officer who was off
duty but working what's called a paid detail, so in
uniform doing security at this building. Then he shoots at
a woman hiding behind a pillar, and continues firing at
civilians as he moves towards an elevator bank. Once he's
(08:30):
at that elevator bank, he strucks and strikes another man,
and then when a woman is coming out of the elevator,
he does not shoot her, but rides the elevator up
to the thirty third floor, which is the headquarters of
a large real estate company here in New York, and
walks the hallway firing rounds, shooting and killing another victim
(08:52):
before turning the gun on himself.
Speaker 1 (08:54):
We've heard from both the Mayor of New York City
and also the NYPD commissioner to what do we know
about the gunman's intentions?
Speaker 8 (09:03):
Yeah, that's what's being investigated right now. What we know
is that this suspect who turned the gun on himself
had a concealed carry permit from Las Vegas, from Nevada,
and we also know that he had a history of
mental health issues. Now we don't know if he had
previously been arrested in any of those other jurisdictions, but
(09:24):
we knew he drove across country to carry this out.
Started off in Nevada, made his way through Colorado, Nebraska,
and ultimately New Jersey before ending up right here in
New York. We know that his motive is at this
point not clear, but this is a building that housed
some really important businesses. You're talking about Blackstone, You're talking
(09:48):
about KPMG, We're talking about the NFL. So you know,
his motive is going to be very important to police
officials and they're going to be looking into that later today.
Speaker 1 (10:00):
Castigations continuing. As you mentioned, you mentioned some of the
businesses in this office building in Manhattan. What do we
know about what happened inside those offices while these events
were unfolding?
Speaker 8 (10:11):
The images we saw this evening were striking. You're talking
about people who are working for you know, obviously one
of the biggest firms you know in finance, Blackstone, barricading themselves,
pushing couches up against walls, against windows, against doors, because
they did not know if they would be targeted by this.
(10:36):
This is something that was on the minds of everybody
who had heard the gunfire, who saw looked at the
window and saw people running. But as you know, Park
Avenue in New York is not just home to these
groups that are in this building, but you've got Citadel
down the street, You've got bn Y there as well.
Of course JP Morgan building their new building in their
(10:57):
headquarters still there. So this was something that was going
across WhatsApp groups and text threads, people trying to figure
out if their loved ones, if their friends were injured.
And luckily, as of this time right now, we know
that many at the firms were not hurt, but we
know that people who worked in that building were in
(11:18):
fact injured and some of them killed.
Speaker 1 (11:20):
That's our senior national security reporter Miles Miller, speaking to
me a little earlier from New York.
Speaker 2 (11:26):
Now, the global market tam will provoked by US President
to Donald Trump's tariff announcements in April sparked a stampede
out of the US dollar. Now, much of that money
flowed into other developed economies, but billions have washed up
in emerging countries, reviving markets that had fallen out of
investor favor. Our emerging markets reporter cel To Gokuluk has
(11:51):
been writing about this, and he joins us now for
more Good morning, Good to have you on the radio program.
How big has the movement then been into what had
been quite unloved emerging markets.
Speaker 9 (12:05):
Yes, I mean, as you said, most of the money
that is leaving the United States actually went to so far,
I mean to Europe or Japan and some other developed markets.
But emerging markets are also benefiting. If you look at
the stock markets, at least data shows, I mean the
reported in terms of reported data, we have seen thirteen
(12:28):
billion dollars in stocks equity funds and more than thirty
billion dollars coming to emerging market bond funds.
Speaker 1 (12:39):
So what kind of assets then in these markets are
attracted our investors being attracted to.
Speaker 9 (12:46):
I mean, one clear actually winner is the local currency bonds.
Because as you can imagine as a dollar of weekends.
That means assests in other currencies actually naturally gain. In
addition to that, in addition to the currency gains, you
have the high yields offered by local currency bonds. So
(13:08):
emerging market actually, in general, emerging market local current sybonds
have handed investors more than ten percent and at the
same time, I mean stock markets in general. In Eastern Europe,
for example, Poland, Slovenia, Romania, all these markets returned to
almost forty percent in dollar terms yere to date, which
(13:29):
is you know, historic gains.
Speaker 2 (13:32):
You're and your colleagues spoke to some really interesting long
time emerging markets investors, you know, who've been quite surprised
by just the number and the volume of phone calls
that they've been getting from investors, you know, to try
to get into this trade. What have they been talking
about in terms of what it means for the countries
(13:53):
where this money is flowing.
Speaker 9 (13:56):
I mean, it's a very well welcome development because many
emerging market because actually have huge spending needs. Again in
Eastern Europe, for example, they have large budget deficits in
Poland Romania because of you know, defense spending and because
of immigration from Ukraine. And at the same time, many
(14:18):
emergen markets have large current account deficits, like for example Turkey,
they need foreign capital as well foreign investments. And at
the same time, even current accounts shop plus countries like
Saudi Arabia, they are trying to modernize deger economies and
that's why they need international investment as well. This is
(14:39):
that's why these flows are very welcome.
Speaker 1 (14:42):
Does it look like a lasting trend at this moment.
Speaker 9 (14:46):
It really depends on, of course, what's going to happen
with I mean US policies. But at the same time,
I mean one thing is that Federal Reserve is expected
to reduce interust rates, which usually supports risk asses include
being emerging markets. And at the same time, I mean
you keep seeing new trade deals agreements, and this removes
(15:08):
one very important uncertainty from the market, and I mean
less uncertain times Smiths again supporting risk asses, including emerging markets.
Speaker 2 (15:19):
Okay, it's a really interesting story, Selchuk, thank you so
much for bringing it to Celtchuk. Gooku Luk there who's
been writing about how the stampede out of the dollars
actually meant a flow into emerging market assets and all
of the traders who've been involved in that in the
past few months.
Speaker 1 (15:36):
Thanks.
Speaker 9 (15:37):
Well.
Speaker 1 (15:37):
Just another story that we have been reading this morning
that I wanted to mention to do with some of
the robots on show as the AI conference in Shanghai
and an idea of what robots can do well and
badly passing backflipping half marathons. Reassuringly, some of them also
fall down. Yeah they do.
Speaker 2 (15:57):
Look, this is a really great Sorry not just reading
about I had to go obviously to look at some
of the videos, and the most striking one, of course,
is the Byte Dance video of this kind of a
big black robot with massive arms, doing up a shirt
and managing to kind of wipe tables and move things
off of tables. So they are you know, a little
insight into maybe what humanoid robots might be able to
(16:19):
do for us. It's still a long way off though,
something like ten years. But China, I know that's not
that long. But China is really at the forefront of
this and showcasing this this week.
Speaker 1 (16:32):
This is Bloomberg Daybreak Europe. You're morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:38):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:44):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (16:50):
Our flagship New York station, is also available on your
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I'm Caroline Hepka
Speaker 1 (16:58):
And I'm Stephen Carroll is 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 Bluebig Day Baqut podcast. Good morning, It's Tuesday,
the twenty ninth of July. I'm Caroline hepkea in London and.
Speaker 1 (00:16):
I'm Stephen Carolin Brussels. Coming up today. At least five
people are dead, including the gunman, after a shooting at
a New York City office tower that houses firms including
Blackstone and KPMG.
Speaker 2 (00:27):
EU industries and politicians voice dissatisfaction with the fifteen percent
US tariff deal as leaders on both sides rush to
finalize the details.
Speaker 1 (00:38):
Plus dollar drift global shift, while the greenbacks waning appeal
as prompting investors to take a fresh look at emerging markets.
Speaker 2 (00:47):
Let's start with the roundup of our top stories.
Speaker 1 (00:49):
A gunman has killed at least four people and himself
at a New York City office tower that houses firms
including Blackstone and KPMG. Authorities identified the man as twenty
seven year old Jane Tomorrow from Nevada. His body was
found on the thirty third floor, which is occupied by
the real estate firm Rudin. Blackstone staff who work one
floor below pushed furniture in front of doors to barricade
(01:12):
themselves in during the attack. New York Police Commissioner Jessica
Tish says investigators are now working to understand a motive.
Speaker 3 (01:21):
According to our law enforcement partners in Las Vegas, mister
Timora has a documented mental health history. His motives are
still under investigation, and we are working to understand why
he targeted this particular location.
Speaker 1 (01:36):
Jessica Tish, speaking after the attack set off a chaotic
scene in mid ten Manhattan, with firms located nearby, including
Jeffreys and Citadel, going into lockdown.
Speaker 2 (01:46):
In trade news, a growing chorus of critics have taken
aim at the deal the EU struck with President Trump
for a fifteen percent tariff on most of its exports
to the US. Clemens Foost, president of Germany's EPO in
Institute for Economic Research, called the deal a humiliation Germany's chances.
Fredrick murd who initially welcomed the deal, warned the economy
(02:08):
would suffer significant damage from the tariffs, whilst the French
Prime Minister for Roswa Bairru went further say that the
Bloc had opted for submission. But despite the critics, the
EU's trade chief Maras Sefkevich has defended the deal.
Speaker 4 (02:25):
If I were to sum up this US agreement in
one sentence, I would say it brings renewed stability and
opens door to strategic collaboration. This is the result of
a month of genuine and relentless efforts.
Speaker 2 (02:42):
Maras Chefchevich was speaking as the EU and US are
now seeking to agree a non legally binding joint statement
by Friday that will expand on the elements negotiated over
the weekend. Once that statement is finalized, the US will
begin lowering its tariffs on specific sectors well.
Speaker 1 (03:02):
The US Commerce Secretary Howard Lutnick meanwhile, says a further
ninety day extension of a trade truce with China is
a likely outcome of talks between the two countries in Stockholm.
The current ninety day tariff cooling period between the US
and China is due to end on the twelfth of August.
In an interview with Fox News, Lutnick said it could
continue beyond that date.
Speaker 5 (03:22):
They're talking right now, but the decision maker, of course,
with President Trump. I'm sure the people with who are
speaking with China, We're going to go discuss with President Trump.
How he wants to play it. He's got an excellent
relationship with President she and I think we'll leave that
to Donald Trump to decide how he wants to do it.
Is that a likely outcome, Sure, it seems that way,
but let's leave it to President Trump to decide.
Speaker 1 (03:45):
US Commerce Secretary Howard Lutnick speaking to Fox News as
negotiations continue on issues including duties tied to fentanyl trafficking
and Chinese purchases of sanctioned Russian and Iranian oil. Lutnik
also said a delegation from South Korea flew to Scotland
to meet Donald Trump, aiming to strike a deal while
he's on a trip there.
Speaker 2 (04:06):
Russian President of Vladimir Putin is facing further pressure to
agree a truth with Ukraine after President Trump announced a
new deadline of ten or twelve days to end the war.
During talks with UK Prime Minister Kirstarma in Scotland, Trump
told reporters there's no reason to wait, suggesting Moscow could
face potential economic consequences if it fails to bring the
(04:30):
conflict to an end.
Speaker 6 (04:32):
That are very disappointed. I'm disappointed in President of Putin,
very disappointed at him. So we're going to have to look,
and I'm going to reduce that fifty days that I
gave him to a lesser number, because I think I
already know the answer what's going to happen.
Speaker 2 (04:47):
President Trump had initially threatened a fifty day deadline for
Russia to end hostilities against Ukraine. In mid July, Vladimir
Putin stepped up missile and drone attacks on Ukrainian cities afterwards.
The Kremlin hasn't commented publicly on Trump's new deadline, though
Russia's rubles sank to its lowest level since mid May
following the announcement.
Speaker 1 (05:09):
UK food inflation has at its highest and seventeen months
due to rising prices for products like tea and meat.
According to the British Retail Consortium, food bills climbed by
four percent in July compared with a year earlier, the
fastest increase since February twenty twenty four. Retailers are blaming
the government's increase in the minimum wage and higher payroll
(05:29):
taxes for the jump, while the BRC also attributed the
changes to tighter global supplies. The data confirmed that a
period of falling prices and shops has come to an end.
Overall shop prices were up for a second month in
a row.
Speaker 2 (05:44):
A group of economists is urging the British Prime Minister
to implement a wealth tax on assets over ten million pounds.
Their calls come as the government looks for ways to
shore up the fragile public finances in the UK, but
the business and trade sector Jonathan Bernolds recently dismissed the
idea as quote daft. Bloomberg's Tea Adebayo has more.
Speaker 7 (06:06):
Chancellor Rachel Reeves is potentially facing a fiscal whole as
large as thirty billion pounds ahead of her autumn budget.
The answer to her economic woes a wealth tax, according
to thirty largely left leaning economists. The group, which includes
the likes of prominent figures including JRT. Gosh and har
(06:27):
Jun Chang, say the levy could raise enormous sums of money.
Critics of the claim say the move risks dampening entrepreneurship
and triggering in exodus of the rich. Opinion polls suggest
Brits are supportive of wealth taxes. In London. Tea at
a Bio Bloomberg.
Speaker 1 (06:45):
Radio and those are your top stories on the markets today.
The Mscish Pacific index down eight tenths of one percent.
Eurostocks fifty features are two tenths higher, but the dollar
is holding on to its strength. Yesterday trading flat on
the Bloomberg Dollar Spot Index, and the US euro was
at one point fifteen eighty five, the pound at one
thirty three forty eight against the dollar. The ten yure
(07:06):
Treasury eeal this morning dinnabases point at four point four percent,
as we are watching gold prices as well, upsightly on
the day three thy three hundred and sixteen dollars triats.
Speaker 2 (07:17):
Now, in a moment, we'll bring you our reporting on
how the dollar's waning appeal for investors is sparking a
revival in emerging markets, and will also discuss the variety
of robots at China's annual AI conference.
Speaker 1 (07:30):
First, let's bring you the latest on that shooting in
New York City where a gunman killed four people and
shot himself at an office building in mid ten Manhattan.
Our national security reporter Miles Miller was at the press
conference following the shooting. We spoke to him a little
earlier and started by asking him about how the events unfolded.
Speaker 8 (07:47):
Well, Yes, the first calls came in just after six thirty,
police say surveillance video shows the gunman, identified as Shane
to Mora of Las Vegas, stepping out of a black
BMW parked along Park Avenue near five second Street. He's
carrying a large M four style rifle and enters the
lobby of three point forty five Park Avenue, which is
(08:07):
a high rise that houses Blackstone, the NFL, and KPMG.
He immediately opens fire, targeting an officer who was off
duty but working what's called a paid detail, so in
uniform doing security at this building. Then he shoots at
a woman hiding behind a pillar, and continues firing at
civilians as he moves towards an elevator bank. Once he's
(08:30):
at that elevator bank, he strucks and strikes another man,
and then when a woman is coming out of the elevator,
he does not shoot her, but rides the elevator up
to the thirty third floor, which is the headquarters of
a large real estate company here in New York, and
walks the hallway firing rounds, shooting and killing another victim
(08:52):
before turning the gun on himself.
Speaker 1 (08:54):
We've heard from both the Mayor of New York City
and also the NYPD commissioner to what do we know
about the gunman's intentions?
Speaker 8 (09:03):
Yeah, that's what's being investigated right now. What we know
is that this suspect who turned the gun on himself
had a concealed carry permit from Las Vegas, from Nevada,
and we also know that he had a history of
mental health issues. Now we don't know if he had
previously been arrested in any of those other jurisdictions, but
(09:24):
we knew he drove across country to carry this out.
Started off in Nevada, made his way through Colorado, Nebraska,
and ultimately New Jersey before ending up right here in
New York. We know that his motive is at this
point not clear, but this is a building that housed
some really important businesses. You're talking about Blackstone, You're talking
(09:48):
about KPMG, We're talking about the NFL. So you know,
his motive is going to be very important to police
officials and they're going to be looking into that later today.
Speaker 1 (10:00):
Castigations continuing. As you mentioned, you mentioned some of the
businesses in this office building in Manhattan. What do we
know about what happened inside those offices while these events
were unfolding?
Speaker 8 (10:11):
The images we saw this evening were striking. You're talking
about people who are working for you know, obviously one
of the biggest firms you know in finance, Blackstone, barricading themselves,
pushing couches up against walls, against windows, against doors, because
they did not know if they would be targeted by this.
(10:36):
This is something that was on the minds of everybody
who had heard the gunfire, who saw looked at the
window and saw people running. But as you know, Park
Avenue in New York is not just home to these
groups that are in this building, but you've got Citadel
down the street, You've got bn Y there as well.
Of course JP Morgan building their new building in their
(10:57):
headquarters still there. So this was something that was going
across WhatsApp groups and text threads, people trying to figure
out if their loved ones, if their friends were injured.
And luckily, as of this time right now, we know
that many at the firms were not hurt, but we
know that people who worked in that building were in
(11:18):
fact injured and some of them killed.
Speaker 1 (11:20):
That's our senior national security reporter Miles Miller, speaking to
me a little earlier from New York.
Speaker 2 (11:26):
Now, the global market tam will provoked by US President
to Donald Trump's tariff announcements in April sparked a stampede
out of the US dollar. Now, much of that money
flowed into other developed economies, but billions have washed up
in emerging countries, reviving markets that had fallen out of
investor favor. Our emerging markets reporter cel To Gokuluk has
(11:51):
been writing about this, and he joins us now for
more Good morning, Good to have you on the radio program.
How big has the movement then been into what had
been quite unloved emerging markets.
Speaker 9 (12:05):
Yes, I mean, as you said, most of the money
that is leaving the United States actually went to so far,
I mean to Europe or Japan and some other developed markets.
But emerging markets are also benefiting. If you look at
the stock markets, at least data shows, I mean the
reported in terms of reported data, we have seen thirteen
(12:28):
billion dollars in stocks equity funds and more than thirty
billion dollars coming to emerging market bond funds.
Speaker 1 (12:39):
So what kind of assets then in these markets are
attracted our investors being attracted to.
Speaker 9 (12:46):
I mean, one clear actually winner is the local currency bonds.
Because as you can imagine as a dollar of weekends.
That means assests in other currencies actually naturally gain. In
addition to that, in addition to the currency gains, you
have the high yields offered by local currency bonds. So
(13:08):
emerging market actually, in general, emerging market local current sybonds
have handed investors more than ten percent and at the
same time, I mean stock markets in general. In Eastern Europe,
for example, Poland, Slovenia, Romania, all these markets returned to
almost forty percent in dollar terms yere to date, which
(13:29):
is you know, historic gains.
Speaker 2 (13:32):
You're and your colleagues spoke to some really interesting long
time emerging markets investors, you know, who've been quite surprised
by just the number and the volume of phone calls
that they've been getting from investors, you know, to try
to get into this trade. What have they been talking
about in terms of what it means for the countries
(13:53):
where this money is flowing.
Speaker 9 (13:56):
I mean, it's a very well welcome development because many
emerging market because actually have huge spending needs. Again in
Eastern Europe, for example, they have large budget deficits in
Poland Romania because of you know, defense spending and because
of immigration from Ukraine. And at the same time, many
(14:18):
emergen markets have large current account deficits, like for example Turkey,
they need foreign capital as well foreign investments. And at
the same time, even current accounts shop plus countries like
Saudi Arabia, they are trying to modernize deger economies and
that's why they need international investment as well. This is
(14:39):
that's why these flows are very welcome.
Speaker 1 (14:42):
Does it look like a lasting trend at this moment.
Speaker 9 (14:46):
It really depends on, of course, what's going to happen
with I mean US policies. But at the same time,
I mean one thing is that Federal Reserve is expected
to reduce interust rates, which usually supports risk asses include
being emerging markets. And at the same time, I mean
you keep seeing new trade deals agreements, and this removes
(15:08):
one very important uncertainty from the market, and I mean
less uncertain times Smiths again supporting risk asses, including emerging markets.
Speaker 2 (15:19):
Okay, it's a really interesting story, Selchuk, thank you so
much for bringing it to Celtchuk. Gooku Luk there who's
been writing about how the stampede out of the dollars
actually meant a flow into emerging market assets and all
of the traders who've been involved in that in the
past few months.
Speaker 1 (15:36):
Thanks.
Speaker 9 (15:37):
Well.
Speaker 1 (15:37):
Just another story that we have been reading this morning
that I wanted to mention to do with some of
the robots on show as the AI conference in Shanghai
and an idea of what robots can do well and
badly passing backflipping half marathons. Reassuringly, some of them also
fall down. Yeah they do.
Speaker 2 (15:57):
Look, this is a really great Sorry not just reading
about I had to go obviously to look at some
of the videos, and the most striking one, of course,
is the Byte Dance video of this kind of a
big black robot with massive arms, doing up a shirt
and managing to kind of wipe tables and move things
off of tables. So they are you know, a little
insight into maybe what humanoid robots might be able to
(16:19):
do for us. It's still a long way off though,
something like ten years. But China, I know that's not
that long. But China is really at the forefront of
this and showcasing this this week.
Speaker 1 (16:32):
This is Bloomberg Daybreak Europe. You're morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:38):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:44):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:50):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka
Speaker 1 (16:58):
And I'm Stephen Carroll is again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe
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