April 29, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Canada’s Liberal Party is projected to win a fourth consecutive election, giving a mandate to former central banker Mark Carney after a campaign in which he pledged to boost economic growth and stand up to US President Donald Trump in a trade war.
(2) Spain and Portugal were returning to some semblance of normality early Tuesday, with many questions remaining about what caused one of Europe’s worst blackouts in years across the Iberian peninsula the previous day.
(3) HSBC unveiled a fresh buyback for shareholders despite an increasingly fragile geopolitical backdrop that has weighed on the global economy and markets.
(4) Deutsche Bank’s trading unit hit a record in the first quarter as the lender benefited from market volatility.
(5) President Donald Trump is on track to ease the impact of his auto tariffs, with changes sought by the industry that would lift some levies on foreign parts for cars and trucks made inside the US.
(6) China’s top diplomat warned countries against caving in to US tariff threats, as the Trump administration hints at the possible use of new trade tools to pressure Beijing.
Podcast conversation: When Spain disappeared off the grid, millions rediscovered the joys of analogue technology.
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Transcript
Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the.
Speaker 3 (00:10):
Bloomberg dayba Q podcast, available every morning on Apple, Spotify
or wherever you listen. It's Tuesday, the twenty ninth of April.
Here in London. I'm Caroline Hepka.
Speaker 4 (00:18):
And I'm Jack Sitters. Coming up today, Mark Carney's Liberals
secure and narrow victory in a Canadian election dominated by
frosty US relations.
Speaker 3 (00:27):
The cause of a massive blackout across Spain and Portugal
remains a mystery. As power returns.
Speaker 4 (00:33):
Plus Trump's second first one hundred days, the US President
looks to tout his successes as polling shows ebbing support
for his economic policies.
Speaker 5 (00:42):
Let's start with a roundup of our top stories.
Speaker 4 (00:45):
Mark Carney's Liberal Party is projected to win a fourth
consecutive election, marking a major turnaround for the party. Despite
the victory, it's likely the party will fall short of
the one hundred and seventy two seats needed for an
outright majority in the House of Commons. The narrow margin
means the former Central banker will need to work with
other parties to pass legislation as he navigates trade hostilities
(01:05):
with the Trump administration, and in his victory speech, Carnei
echoed his campaign comments.
Speaker 6 (01:10):
Our old relationship with the United States, a relationship based
on steadily increasing integration, is over. The system of open
global trade anchored by the United States, a system that
Canada has relied on since the Second World War, a
system that will not perfect, has helped deliver prosperity for
(01:33):
a country for decades, is over. We are over the
shock of the American betrayal, but we should never forget
the lessons.
Speaker 4 (01:41):
The former head of Canada's and Britain central banks, Mark Carney,
became Liberal leader on March ninth and called an election
just two weeks later. Campaigning is a tough opponent to
a US president who has repeatedly suggested Canada should become
a US state. After steering two G seven central banks
through the two thousand and eight financial crash and Brexit,
Carly must now prove to voters that his reputation as
(02:02):
a crisis manager can extend into the political arena.
Speaker 3 (02:06):
Power has been almost fully restored in Spain and Portugal
after the two countries were hit by a sweeping power
cut on Monday. Millions of people were caught up in
the chaos after the mass blackout brought many areas of
life to a standstill, with trains stopping, planes grounded, internet
and mobile phone services, cut, traffic, lights and at ms down.
Speaker 5 (02:26):
The cause of.
Speaker 3 (02:27):
The blackout remains unknown, though, with the Spanish Prime Minister
Pedro Sanchez saying that experts have not yet been able
to determine the cause.
Speaker 7 (02:36):
Dams, we still have no conclusive information about the reasons
for this outage. The power supply has already been restored
in several territories in the north and south of the
peninsula thanks to the interconnections with France and Morocco conf Mars.
Speaker 3 (02:52):
The words of Pedros Sanchez that are spoken via a translator.
A blackout of this scale is rare in Europe and
highlights the fragility of the grid as the region shifts
to renewable energy. Spain may also face scrutiny, though over
plans to decommission nuclear plants, which supply twenty percent of
its power, and the closure of its last coal powered
plant this year in favor of renewables.
Speaker 5 (03:15):
Backed by gas.
Speaker 4 (03:16):
HSBC is to buy back another three billion dollars of
shares as profits come in well ahead of estimates. Bloomberg's
Uin Pots has more. It's a big beat for HSBC.
Speaker 8 (03:26):
Europe's largest bank has apported a pre tax profit of
nine point four to eight billion dollars for the first quarter,
well ahead of estimates for seven point eight billion. The
London based lender is to buy back another three billion
dollars of shares after what it called the strong results
and momentum in earnings.
Speaker 9 (03:42):
As to the outlook watch this space.
Speaker 8 (03:45):
AHSBC is the largest non US clear of dollars, so
it is highly exposed to the growing rift between Washington
and Beijing.
Speaker 9 (03:52):
In London. I'm Ewine Pots Bloomberg Radio.
Speaker 3 (03:54):
Now let's think about other earnings. A key story from
Deutsche Bang are the German lender report profits and revenues
that beat estimates. So the first three months of this year,
pre tax profits came in at two point eight billion
euros in the first quarter. That's more than two hundred
million higher than estimates. Fixed income sales and trading revenue
at Deutsche Bank also beat at two point nine billion euros.
(04:17):
Deutsche Bank CFO James von Malka says the bank is
benefiting from global volatility.
Speaker 2 (04:23):
The crystal ball is cloudy as we think about it though.
First of all, our company is well equipped to navigate
an environment like this, whether it's risk management or the
great client franchise we have, as well as the very
strong balance sheet. We're equipped to navigate ourselves and more importantly,
help clients through what is an unsettled environment.
Speaker 3 (04:45):
Deutsche Banks CFO there speaking to Bloomberg, He added that
the bank has to look at the near term future
with some caution. It's the latest set of bank earnings
showing how traders have made big profits on the market
volatility set off by the Trump administration.
Speaker 4 (05:03):
US President Donald Trump is on track to ease some
tariffs on car manufacturers. Some levees on importing foreign parts
will be lifted, and there will be a reprieve to
prevent steel and car tariffs overlapping. Two days ago, Trump
had doubled down on his trade policy, saying it would
lead to lower taxes.
Speaker 10 (05:19):
They getting a lot of money from tariffs. We are
losing a lot before I got here, we're losing billions
of dollars a day. And now we're doing great and
we haven't even kicked in yet. And eventually we'll be
reducing taxes very substantially. For the people of our country,
because the money is so great coming in from tariffs
that I'll be able to reduce taxes to a very
(05:41):
large extent and maybe almost completely.
Speaker 4 (05:44):
The US President could sign off on the shift as
soon as today, a head of a speech he's giving
in car making state to Michigan. The latest devolution of
Trump's trade policy comes as the Dallas Fed Manufacturing Index
posted its worst reading since twenty twenty, with executives using
words like chaos and in sanity to describe the fallout
of tariffs.
Speaker 3 (06:02):
Meanwhile, China's top diplomat says that appeasing a bully will
only make America boulder. Foreign Minister Wang Yi urged countries
around the world to stand up to the United States,
as his office released a propaganda video saying China won't
kneel down. The EU's Economy Commission of Altis Don Broskis,
says that they are still engaging with America, but that
(06:25):
he had a message for China too.
Speaker 11 (06:28):
That it's important also that China shows restraint, that it
does not put all this now our capacity of goods
to other markets, including EU, because then we will help
to react to or how to close our market to protect,
protect our economy, our companies, and that will lead even
to further global economic fragmentation.
Speaker 3 (06:49):
The EU's veldist Don Broski, speaking to Bloomberg there Washington
has insisted that the ball is in China's court to
de escalate the trade Wilbert Beijing has demanded a cancelation
of all US tariffs before any negotiations begin.
Speaker 4 (07:02):
CEOs from firms including Nvidia, Eli, Lilly, and SoftBank will
visit the White House tomorrow to highlight their US investments
as the president celebrates one hundred days in office. The
event will come after Trump attends a Michigan rally today
to mark the milestone, where he is expected to tout
his administration's estimated two trillion dollars in corporate commitments. But
(07:23):
amidst the White House festivities are warnings from Wall Street
leaders about price increases and fallout from a US led
trade war. Luri Calvasina, head of US equity strategy at
RBC Capital Markets, says firms are facing uncertainty.
Speaker 12 (07:37):
I think it was an intellectually honest conversation we got
from companies saying, you know, look, we're not changing our
guidance because we think we can manage this too. We're
not going to do annual guidance anymore. We're going to
do quarterly guidance instead to we can't give you anything
right now. We'll give you an answer when we have one,
and we're not going to give you on until we're comfortable.
Speaker 4 (07:55):
RBC's Laurie Calvicina speaking there. Donald Trump is also facing
Sinki popularity, with a flurry of poles showing voter disapproval
of the president's economic stewardship. Gages from CNN and NBC
show just thirty nine percent of Americans agree with the
White House tariff rollout.
Speaker 3 (08:12):
Those are our top stories for you this morning. Now
let's get to the markets. Asian equities hire the possibility
that President Trump may ease his auto tariffs has helped
to lift some of the automakers in Asia. Kia, Hyundai,
and Toyota all rising in trading this morning. Mci AH
Pacific Index up by three tenths of one percent. As
(08:34):
for stock futures, they are mixed this morning, slightly half
of the US stock swfty futures smb FI found evening
future also just about clinging on to the Green Wall
Street in the last hours of trading yesterday saw some
gains in their four to five days of gains, the
longest winning streaks since and November. Yes they also saw
US Treasury's rally across the curve two year yields falling
(08:57):
six basis points on that tariff for p Also just
looking at the loony this morning, weekening three tenths against
the US a lot on the Canadian election result. And
I'll mention a couple of earnings out today. BP adjusted
net income for the first quarter missus average analyst estimates.
They're planning to share buyback seven and fifty million dollars
and astra Zenica earnings per share come in as a
(09:19):
big beat. Two dollars forty nine for core earnings per
share from Astrazenica.
Speaker 4 (09:25):
Thanks Caroline, you had lots of earnings headlines today and
in just a moment we'll talk about Trump's first one
hundred days with Amy A News director Roslyn Madison. But
before we do, another story that caught our eye this morning.
The blackout in Spain and Portugal, which remains a mystery,
was chaos for sixty million people on the Iberian Peninsula,
no internet, no lights. Trainers came to a standstill, thousands
(09:46):
of flights canceled, ATM stopped working, stock market operated as normal,
but backup generators.
Speaker 3 (09:52):
Yes, and that's the issue that we still really don't
understand what oscillation means. That was what the read Elne Electric,
the electricity grid are blamed for this massive blackout across Portugal, Spain,
even effect to some parts of France. We had our
writers Ben Sill's colleagues in Madrid out and about. He
(10:13):
wrote a piece about how the students were all lying
on the grass, not or not working because all of
their books effectively are online. They don't actually have physical
books anymore. Our opinion columnists Javier Blass also posting about
this throughout the day. His father apparently was complaining that
his reclinable chair is electric and that it wouldn't work,
(10:34):
so it disturbed his siesta. So lots of people, you know,
were trying to enjoy the afternoon as best as they could,
but there were a lot of worries about kind of
what this means. It's very rare for there to be
such a huge blackout, so there'll be loads of questions
about it.
Speaker 4 (10:49):
Now, let's get the latest on the Canadian election results.
And a fourth consecutive term for Liberal Party, but only
a narrow margin of victory. It's one incoming Prime Minister
Mark Carney secured by doubling down on one issue, standing
up to Donald TRUMPA News director Roslyn Matheson joins US
Now for more Morning. Roslyn, so, Mark Conney referred to
America's betrayal. China have called the US a bully. Does
(11:12):
this election mark a turning point for global views towards
the US, Well, yes.
Speaker 13 (11:16):
And possibly no.
Speaker 14 (11:17):
I mean, as you say, it was actually quite a
narrow victory for Mark Carney, and there's some possibility he'll
have to end up running a minority government operating with
the party that tends to feel candidates only in Quebec,
because it was interesting to see the Conservatives make some
inroads in the Liberal heartlands in Toronto and Ontario. So
(11:39):
those are long, long, long voters for the Liberals. And
that's despite using that strong sense of grievance that you
see coming from Canadian people in general at the way
that the relationship with the US has broken down, because
of course, for many Canadians it's quite personal to see
(11:59):
the way that you know, the US administration is talking
about them and talking about making them yet another state
of the US. And in spite of all of that
and obviously Cannie, you know, he did turn things around
from the popularity of the liberals only some months ago,
but it wasn't quite the victory that perhaps he was
looking for in a convincing sense. And perhaps that means
(12:21):
that people are worried that you know, yes, they're concerned
about Donald Trump, but if you stand up to him
too much, do you bring too much economic pain back
on yourself?
Speaker 3 (12:31):
Yeah, Connie talks about it being a hinge moment in history,
that he wants to make Canada and energy superpower.
Speaker 5 (12:38):
And also to double home building.
Speaker 3 (12:40):
So he was very much also trying to talk to
the domestic audience as well as the kind of the
global back job, I mean, thinking about President Trump's policies.
As we're one hundred days in now to his second administration.
It was very interesting to read the Dallas FED survey
yesterday the views of American business leaders, manufacturers, chaos and
(13:03):
insanity the result of Trump Tariff's very strong language.
Speaker 14 (13:07):
Well, it's interesting because you know, quite a few CEOs
have welcomed the Trump administration, so they were looking forward
to it. What they're looking for is a government that's
obviously low regulation for a start, that's very much pro business.
And you know, Donald Trump is on a surface level
saying things they want to hear. He wants to bring
business back to the US. He wants to make the
(13:29):
US you know great err again, even though it was
perhaps in his first term. But it's the way he's
going about it that's causing this disruption that they're probably
referring to, which is this very very dizzying pace of
policy making, the abrupt changes of position that are coming,
so he can change his mind a couple of hours
(13:49):
after announcing something. And if you're a big company trying
to develop your structure going forward, that's a really difficult
environment to be operating in. And you know, the concerns
are that what you see sentiment effects on US consumers.
Us consumers stop spending, you know, companies stop hiring, and
so that's really what CEOs are worried about. You know,
(14:12):
many of them, as I said, do actually support the
overarching message that comes from Donald Trump. The concern though,
obviously about the way that he's doing it.
Speaker 4 (14:22):
So yeah, business leaders struggling to cope with the uncertainty.
But what about US voters after one hundred days of Trumps,
what's their verdict on you know, the president's aims to
remake the US at home and abroad.
Speaker 13 (14:34):
Well, you can see that concerns are showing up there also.
Speaker 14 (14:36):
I mean, the polling shows that Donald Trump's popularity is
taking a hit, and that's certainly something he's probably going
to be very attuned to. You can see that in
the possible reversal coming on auto tariffs to give relief
to auto companies. He's going to Michigan today to make
a big speech to mark his one hundred days.
Speaker 13 (14:56):
At a time the auto companies.
Speaker 14 (14:58):
Say, we're really worried about our outlook here and whether
we can continue to employ all our workers. So you
see a lot of uncertainty coming in for the ordinary
American in terms of, you know, their job security. You
see the cuts to government entities and so on, and
he's very very attuned to that above all, and you
(15:19):
know that's why he's pushing his tax cuts to try
and get those through Congress quicker than he initially had said.
So he wants to deliver something to them pretty quickly
on the tax side, and that's obviously a high concern
for him.
Speaker 3 (15:35):
And then of course there's China and how they are
dealing with Trump and tariffs. In a meeting of bricks countries,
China was basically telling them to stand firm, that appeasement
would only embolden the bully, and they have repeatedly said,
you know, they aren't engaged in any trade talks, even
though that is what the Trump administration wants.
Speaker 14 (15:57):
Yes, it's that tomato tomato thing of are they actually
talking in some fashion? Is it a form more versus
informal thing. I mean, obviously you can see that. You know,
having Trump come quite aggressively for China is actually helpful
for segping at home.
Speaker 13 (16:12):
He's really pushing that narrative.
Speaker 14 (16:14):
You can see the administration there really leaning into that
for their own support at home. But it also reflects
these efforts by the US to try and peel countries
away from China, because right now, if you're Europe you're saying, well,
I can't put all my eggs in the US baskets.
So we're going to have to talk to China on tray.
We're going to have to talk to countries in the
(16:35):
Middle East on tray. We have to diversify, and Donald
Trump is looking at that saying, oh, I don't want
that to happen. So he's trying to now say to countries,
I don't want you getting too close to China. He
really really does not like the bricks, and of course
that's a grip that's been expanding heavily over the past
few years. He doesn't want those countries during closer to China,
and that's really where that tension is coming.
Speaker 4 (16:57):
Fascinating. Yes, it's an uncertain Jeffish environment Ross, thank you
for joining us. EMA News director Roslyn Mathson. There now
lots of earnings today and HSBC has reported pre tax
profit for the first quarter that beat the average. Analyss
essmate with CEO George L. Hendry, who took on the
top job in February, calling the numbers strong results. Joining
(17:17):
us now is Bloomberg's Charlie Wells. Morning, Charlie, So talk
us through HSBC earnings and maid the difficult backdrop of
Tariff's and US China tensions.
Speaker 1 (17:25):
Yeah, Jack soon, there have been so much concerned that
you know, this bank probably you know, in contrast to
so many of the others, both in Europe and on
Wall Street has that huge Asia exposure, and it's also
got that huge trade facilitation exposure, and so those themes
in the markets right now have been what have made
analysts and investors nervous. At least for this quarter, a
lot of those fewers have been put to rest. They
(17:47):
did have that significant profit beat. But I think maybe
even better for a lot of these investors is the
three billion dollar stock buyback that they announced. So that's
going to please a lot of people. Also, you know,
this whole earning season, whatever business we're looking at, I
think the big question has been, Okay, sure you had
a great first quarter, that's fine. What does the rest
of this year look like? And what's really striking here?
(18:07):
What is a story of strength that HSBC is able
to tell. They're keeping their guidance for the year ahead
after evaluating plausible scenarios.
Speaker 5 (18:16):
Okay, so that's on HSBC.
Speaker 3 (18:18):
Meanwhile, Deutsche Bank earnings, the CFO James von Maltke speaking
to Bloomberg as he usually does, speaking to Bloomberg TV,
saying that some of their business units slow dramatically in April.
Speaker 9 (18:30):
That's a statement, it is a statement.
Speaker 1 (18:32):
I think it's this kind of mixed picture that we're getting,
I think, on you know, the positive side for this bank,
they had fixed income trading revenue that beat estimates. But
I think they're trying to square the circle here right
where there may have been a slowdown in some areas.
Speaker 9 (18:46):
There's a lot of uncertainty.
Speaker 1 (18:47):
And I think one of the big questions is, you know,
many of these banks got boosts from volatility, and I think,
are we moving from an era where there's this kind
of good volatility that helps trading, or and are we
moving to a period where there is bad volatility where
market participants start sitting on the sidelines. I think that's
one of the kind of the real tough questions that
we'll have to keep asking.
Speaker 4 (19:07):
Good volatiotea and bad voltotea And I okay, so away
from the banks, what else are we watching this morning?
Speaker 9 (19:12):
In AMA earnings?
Speaker 1 (19:13):
Yeah, so look, we're getting some really interesting updates from
across the board. BP first quarter earnings are out, and
you know, we were just talking about buybacks. They were
able to announce a buydock on the lower end of
the guidance, So that's not going to be great. BP's
been under pressure right that oil price slide amid all
of this uncertainty and also the increase in supply that
(19:34):
we've seen in the market. That's really difficult for them,
and you know the automotive sector as well. Porsche cut
it's full year operating return. This is a company that's
really in the crosshairs of these Transatlantic tariffs because they
produce a lot of their luxury vehicles in Europe and
then export them to the United States.
Speaker 9 (19:52):
That's difficult for them.
Speaker 1 (19:54):
So yeah, more earnings on automotive coming this week as well.
Speaker 15 (19:58):
This is Bloomberg day Break Europe, your morning brief on
the stories making news from London to Wall Street and beyond.
Speaker 3 (20:05):
Look for us on your podcast feed every morning, on Apple, Spotify,
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Speaker 15 (20:11):
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Speaker 3 (20:16):
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Speaker 5 (20:24):
I'm Caroline Hepka and.
Speaker 9 (20:25):
I'm Stephen Carroll.
Speaker 15 (20:26):
Join us again tomorrow morning for all the news you
need to start your day Right here on Bloomberg day
Break Europe.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the.
Speaker 3 (00:10):
Bloomberg dayba Q podcast, available every morning on Apple, Spotify
or wherever you listen. It's Tuesday, the twenty ninth of April.
Here in London. I'm Caroline Hepka.
Speaker 4 (00:18):
And I'm Jack Sitters. Coming up today, Mark Carney's Liberals
secure and narrow victory in a Canadian election dominated by
frosty US relations.
Speaker 3 (00:27):
The cause of a massive blackout across Spain and Portugal
remains a mystery. As power returns.
Speaker 4 (00:33):
Plus Trump's second first one hundred days, the US President
looks to tout his successes as polling shows ebbing support
for his economic policies.
Speaker 5 (00:42):
Let's start with a roundup of our top stories.
Speaker 4 (00:45):
Mark Carney's Liberal Party is projected to win a fourth
consecutive election, marking a major turnaround for the party. Despite
the victory, it's likely the party will fall short of
the one hundred and seventy two seats needed for an
outright majority in the House of Commons. The narrow margin
means the former Central banker will need to work with
other parties to pass legislation as he navigates trade hostilities
(01:05):
with the Trump administration, and in his victory speech, Carnei
echoed his campaign comments.
Speaker 6 (01:10):
Our old relationship with the United States, a relationship based
on steadily increasing integration, is over. The system of open
global trade anchored by the United States, a system that
Canada has relied on since the Second World War, a
system that will not perfect, has helped deliver prosperity for
(01:33):
a country for decades, is over. We are over the
shock of the American betrayal, but we should never forget
the lessons.
Speaker 4 (01:41):
The former head of Canada's and Britain central banks, Mark Carney,
became Liberal leader on March ninth and called an election
just two weeks later. Campaigning is a tough opponent to
a US president who has repeatedly suggested Canada should become
a US state. After steering two G seven central banks
through the two thousand and eight financial crash and Brexit,
Carly must now prove to voters that his reputation as
(02:02):
a crisis manager can extend into the political arena.
Speaker 3 (02:06):
Power has been almost fully restored in Spain and Portugal
after the two countries were hit by a sweeping power
cut on Monday. Millions of people were caught up in
the chaos after the mass blackout brought many areas of
life to a standstill, with trains stopping, planes grounded, internet
and mobile phone services, cut, traffic, lights and at ms down.
Speaker 5 (02:26):
The cause of.
Speaker 3 (02:27):
The blackout remains unknown, though, with the Spanish Prime Minister
Pedro Sanchez saying that experts have not yet been able
to determine the cause.
Speaker 7 (02:36):
Dams, we still have no conclusive information about the reasons
for this outage. The power supply has already been restored
in several territories in the north and south of the
peninsula thanks to the interconnections with France and Morocco conf Mars.
Speaker 3 (02:52):
The words of Pedros Sanchez that are spoken via a translator.
A blackout of this scale is rare in Europe and
highlights the fragility of the grid as the region shifts
to renewable energy. Spain may also face scrutiny, though over
plans to decommission nuclear plants, which supply twenty percent of
its power, and the closure of its last coal powered
plant this year in favor of renewables.
Speaker 5 (03:15):
Backed by gas.
Speaker 4 (03:16):
HSBC is to buy back another three billion dollars of
shares as profits come in well ahead of estimates. Bloomberg's
Uin Pots has more. It's a big beat for HSBC.
Speaker 8 (03:26):
Europe's largest bank has apported a pre tax profit of
nine point four to eight billion dollars for the first quarter,
well ahead of estimates for seven point eight billion. The
London based lender is to buy back another three billion
dollars of shares after what it called the strong results
and momentum in earnings.
Speaker 9 (03:42):
As to the outlook watch this space.
Speaker 8 (03:45):
AHSBC is the largest non US clear of dollars, so
it is highly exposed to the growing rift between Washington
and Beijing.
Speaker 9 (03:52):
In London. I'm Ewine Pots Bloomberg Radio.
Speaker 3 (03:54):
Now let's think about other earnings. A key story from
Deutsche Bang are the German lender report profits and revenues
that beat estimates. So the first three months of this year,
pre tax profits came in at two point eight billion
euros in the first quarter. That's more than two hundred
million higher than estimates. Fixed income sales and trading revenue
at Deutsche Bank also beat at two point nine billion euros.
(04:17):
Deutsche Bank CFO James von Malka says the bank is
benefiting from global volatility.
Speaker 2 (04:23):
The crystal ball is cloudy as we think about it though.
First of all, our company is well equipped to navigate
an environment like this, whether it's risk management or the
great client franchise we have, as well as the very
strong balance sheet. We're equipped to navigate ourselves and more importantly,
help clients through what is an unsettled environment.
Speaker 3 (04:45):
Deutsche Banks CFO there speaking to Bloomberg, He added that
the bank has to look at the near term future
with some caution. It's the latest set of bank earnings
showing how traders have made big profits on the market
volatility set off by the Trump administration.
Speaker 4 (05:03):
US President Donald Trump is on track to ease some
tariffs on car manufacturers. Some levees on importing foreign parts
will be lifted, and there will be a reprieve to
prevent steel and car tariffs overlapping. Two days ago, Trump
had doubled down on his trade policy, saying it would
lead to lower taxes.
Speaker 10 (05:19):
They getting a lot of money from tariffs. We are
losing a lot before I got here, we're losing billions
of dollars a day. And now we're doing great and
we haven't even kicked in yet. And eventually we'll be
reducing taxes very substantially. For the people of our country,
because the money is so great coming in from tariffs
that I'll be able to reduce taxes to a very
(05:41):
large extent and maybe almost completely.
Speaker 4 (05:44):
The US President could sign off on the shift as
soon as today, a head of a speech he's giving
in car making state to Michigan. The latest devolution of
Trump's trade policy comes as the Dallas Fed Manufacturing Index
posted its worst reading since twenty twenty, with executives using
words like chaos and in sanity to describe the fallout
of tariffs.
Speaker 3 (06:02):
Meanwhile, China's top diplomat says that appeasing a bully will
only make America boulder. Foreign Minister Wang Yi urged countries
around the world to stand up to the United States,
as his office released a propaganda video saying China won't
kneel down. The EU's Economy Commission of Altis Don Broskis,
says that they are still engaging with America, but that
(06:25):
he had a message for China too.
Speaker 11 (06:28):
That it's important also that China shows restraint, that it
does not put all this now our capacity of goods
to other markets, including EU, because then we will help
to react to or how to close our market to protect,
protect our economy, our companies, and that will lead even
to further global economic fragmentation.
Speaker 3 (06:49):
The EU's veldist Don Broski, speaking to Bloomberg there Washington
has insisted that the ball is in China's court to
de escalate the trade Wilbert Beijing has demanded a cancelation
of all US tariffs before any negotiations begin.
Speaker 4 (07:02):
CEOs from firms including Nvidia, Eli, Lilly, and SoftBank will
visit the White House tomorrow to highlight their US investments
as the president celebrates one hundred days in office. The
event will come after Trump attends a Michigan rally today
to mark the milestone, where he is expected to tout
his administration's estimated two trillion dollars in corporate commitments. But
(07:23):
amidst the White House festivities are warnings from Wall Street
leaders about price increases and fallout from a US led
trade war. Luri Calvasina, head of US equity strategy at
RBC Capital Markets, says firms are facing uncertainty.
Speaker 12 (07:37):
I think it was an intellectually honest conversation we got
from companies saying, you know, look, we're not changing our
guidance because we think we can manage this too. We're
not going to do annual guidance anymore. We're going to
do quarterly guidance instead to we can't give you anything
right now. We'll give you an answer when we have one,
and we're not going to give you on until we're comfortable.
Speaker 4 (07:55):
RBC's Laurie Calvicina speaking there. Donald Trump is also facing
Sinki popularity, with a flurry of poles showing voter disapproval
of the president's economic stewardship. Gages from CNN and NBC
show just thirty nine percent of Americans agree with the
White House tariff rollout.
Speaker 3 (08:12):
Those are our top stories for you this morning. Now
let's get to the markets. Asian equities hire the possibility
that President Trump may ease his auto tariffs has helped
to lift some of the automakers in Asia. Kia, Hyundai,
and Toyota all rising in trading this morning. Mci AH
Pacific Index up by three tenths of one percent. As
(08:34):
for stock futures, they are mixed this morning, slightly half
of the US stock swfty futures smb FI found evening
future also just about clinging on to the Green Wall
Street in the last hours of trading yesterday saw some
gains in their four to five days of gains, the
longest winning streaks since and November. Yes they also saw
US Treasury's rally across the curve two year yields falling
(08:57):
six basis points on that tariff for p Also just
looking at the loony this morning, weekening three tenths against
the US a lot on the Canadian election result. And
I'll mention a couple of earnings out today. BP adjusted
net income for the first quarter missus average analyst estimates.
They're planning to share buyback seven and fifty million dollars
and astra Zenica earnings per share come in as a
(09:19):
big beat. Two dollars forty nine for core earnings per
share from Astrazenica.
Speaker 4 (09:25):
Thanks Caroline, you had lots of earnings headlines today and
in just a moment we'll talk about Trump's first one
hundred days with Amy A News director Roslyn Madison. But
before we do, another story that caught our eye this morning.
The blackout in Spain and Portugal, which remains a mystery,
was chaos for sixty million people on the Iberian Peninsula,
no internet, no lights. Trainers came to a standstill, thousands
(09:46):
of flights canceled, ATM stopped working, stock market operated as normal,
but backup generators.
Speaker 3 (09:52):
Yes, and that's the issue that we still really don't
understand what oscillation means. That was what the read Elne Electric,
the electricity grid are blamed for this massive blackout across Portugal, Spain,
even effect to some parts of France. We had our
writers Ben Sill's colleagues in Madrid out and about. He
(10:13):
wrote a piece about how the students were all lying
on the grass, not or not working because all of
their books effectively are online. They don't actually have physical
books anymore. Our opinion columnists Javier Blass also posting about
this throughout the day. His father apparently was complaining that
his reclinable chair is electric and that it wouldn't work,
(10:34):
so it disturbed his siesta. So lots of people, you know,
were trying to enjoy the afternoon as best as they could,
but there were a lot of worries about kind of
what this means. It's very rare for there to be
such a huge blackout, so there'll be loads of questions
about it.
Speaker 4 (10:49):
Now, let's get the latest on the Canadian election results.
And a fourth consecutive term for Liberal Party, but only
a narrow margin of victory. It's one incoming Prime Minister
Mark Carney secured by doubling down on one issue, standing
up to Donald TRUMPA News director Roslyn Matheson joins US
Now for more Morning. Roslyn, so, Mark Conney referred to
America's betrayal. China have called the US a bully. Does
(11:12):
this election mark a turning point for global views towards
the US, Well, yes.
Speaker 13 (11:16):
And possibly no.
Speaker 14 (11:17):
I mean, as you say, it was actually quite a
narrow victory for Mark Carney, and there's some possibility he'll
have to end up running a minority government operating with
the party that tends to feel candidates only in Quebec,
because it was interesting to see the Conservatives make some
inroads in the Liberal heartlands in Toronto and Ontario. So
(11:39):
those are long, long, long voters for the Liberals. And
that's despite using that strong sense of grievance that you
see coming from Canadian people in general at the way
that the relationship with the US has broken down, because
of course, for many Canadians it's quite personal to see
(11:59):
the way that you know, the US administration is talking
about them and talking about making them yet another state
of the US. And in spite of all of that
and obviously Cannie, you know, he did turn things around
from the popularity of the liberals only some months ago,
but it wasn't quite the victory that perhaps he was
looking for in a convincing sense. And perhaps that means
(12:21):
that people are worried that you know, yes, they're concerned
about Donald Trump, but if you stand up to him
too much, do you bring too much economic pain back
on yourself?
Speaker 3 (12:31):
Yeah, Connie talks about it being a hinge moment in history,
that he wants to make Canada and energy superpower.
Speaker 5 (12:38):
And also to double home building.
Speaker 3 (12:40):
So he was very much also trying to talk to
the domestic audience as well as the kind of the
global back job, I mean, thinking about President Trump's policies.
As we're one hundred days in now to his second administration.
It was very interesting to read the Dallas FED survey
yesterday the views of American business leaders, manufacturers, chaos and
(13:03):
insanity the result of Trump Tariff's very strong language.
Speaker 14 (13:07):
Well, it's interesting because you know, quite a few CEOs
have welcomed the Trump administration, so they were looking forward
to it. What they're looking for is a government that's
obviously low regulation for a start, that's very much pro business.
And you know, Donald Trump is on a surface level
saying things they want to hear. He wants to bring
business back to the US. He wants to make the
(13:29):
US you know great err again, even though it was
perhaps in his first term. But it's the way he's
going about it that's causing this disruption that they're probably
referring to, which is this very very dizzying pace of
policy making, the abrupt changes of position that are coming,
so he can change his mind a couple of hours
(13:49):
after announcing something. And if you're a big company trying
to develop your structure going forward, that's a really difficult
environment to be operating in. And you know, the concerns
are that what you see sentiment effects on US consumers.
Us consumers stop spending, you know, companies stop hiring, and
so that's really what CEOs are worried about. You know,
(14:12):
many of them, as I said, do actually support the
overarching message that comes from Donald Trump. The concern though,
obviously about the way that he's doing it.
Speaker 4 (14:22):
So yeah, business leaders struggling to cope with the uncertainty.
But what about US voters after one hundred days of Trumps,
what's their verdict on you know, the president's aims to
remake the US at home and abroad.
Speaker 13 (14:34):
Well, you can see that concerns are showing up there also.
Speaker 14 (14:36):
I mean, the polling shows that Donald Trump's popularity is
taking a hit, and that's certainly something he's probably going
to be very attuned to. You can see that in
the possible reversal coming on auto tariffs to give relief
to auto companies. He's going to Michigan today to make
a big speech to mark his one hundred days.
Speaker 13 (14:56):
At a time the auto companies.
Speaker 14 (14:58):
Say, we're really worried about our outlook here and whether
we can continue to employ all our workers. So you
see a lot of uncertainty coming in for the ordinary
American in terms of, you know, their job security. You
see the cuts to government entities and so on, and
he's very very attuned to that above all, and you
(15:19):
know that's why he's pushing his tax cuts to try
and get those through Congress quicker than he initially had said.
So he wants to deliver something to them pretty quickly
on the tax side, and that's obviously a high concern
for him.
Speaker 3 (15:35):
And then of course there's China and how they are
dealing with Trump and tariffs. In a meeting of bricks countries,
China was basically telling them to stand firm, that appeasement
would only embolden the bully, and they have repeatedly said,
you know, they aren't engaged in any trade talks, even
though that is what the Trump administration wants.
Speaker 14 (15:57):
Yes, it's that tomato tomato thing of are they actually
talking in some fashion? Is it a form more versus
informal thing. I mean, obviously you can see that. You know,
having Trump come quite aggressively for China is actually helpful
for segping at home.
Speaker 13 (16:12):
He's really pushing that narrative.
Speaker 14 (16:14):
You can see the administration there really leaning into that
for their own support at home. But it also reflects
these efforts by the US to try and peel countries
away from China, because right now, if you're Europe you're saying, well,
I can't put all my eggs in the US baskets.
So we're going to have to talk to China on tray.
We're going to have to talk to countries in the
(16:35):
Middle East on tray. We have to diversify, and Donald
Trump is looking at that saying, oh, I don't want
that to happen. So he's trying to now say to countries,
I don't want you getting too close to China. He
really really does not like the bricks, and of course
that's a grip that's been expanding heavily over the past
few years. He doesn't want those countries during closer to China,
and that's really where that tension is coming.
Speaker 4 (16:57):
Fascinating. Yes, it's an uncertain Jeffish environment Ross, thank you
for joining us. EMA News director Roslyn Mathson. There now
lots of earnings today and HSBC has reported pre tax
profit for the first quarter that beat the average. Analyss
essmate with CEO George L. Hendry, who took on the
top job in February, calling the numbers strong results. Joining
(17:17):
us now is Bloomberg's Charlie Wells. Morning, Charlie, So talk
us through HSBC earnings and maid the difficult backdrop of
Tariff's and US China tensions.
Speaker 1 (17:25):
Yeah, Jack soon, there have been so much concerned that
you know, this bank probably you know, in contrast to
so many of the others, both in Europe and on
Wall Street has that huge Asia exposure, and it's also
got that huge trade facilitation exposure, and so those themes
in the markets right now have been what have made
analysts and investors nervous. At least for this quarter, a
lot of those fewers have been put to rest. They
(17:47):
did have that significant profit beat. But I think maybe
even better for a lot of these investors is the
three billion dollar stock buyback that they announced. So that's
going to please a lot of people. Also, you know,
this whole earning season, whatever business we're looking at, I
think the big question has been, Okay, sure you had
a great first quarter, that's fine. What does the rest
of this year look like? And what's really striking here?
(18:07):
What is a story of strength that HSBC is able
to tell. They're keeping their guidance for the year ahead
after evaluating plausible scenarios.
Speaker 5 (18:16):
Okay, so that's on HSBC.
Speaker 3 (18:18):
Meanwhile, Deutsche Bank earnings, the CFO James von Maltke speaking
to Bloomberg as he usually does, speaking to Bloomberg TV,
saying that some of their business units slow dramatically in April.
Speaker 9 (18:30):
That's a statement, it is a statement.
Speaker 1 (18:32):
I think it's this kind of mixed picture that we're getting,
I think, on you know, the positive side for this bank,
they had fixed income trading revenue that beat estimates. But
I think they're trying to square the circle here right
where there may have been a slowdown in some areas.
Speaker 9 (18:46):
There's a lot of uncertainty.
Speaker 1 (18:47):
And I think one of the big questions is, you know,
many of these banks got boosts from volatility, and I think,
are we moving from an era where there's this kind
of good volatility that helps trading, or and are we
moving to a period where there is bad volatility where
market participants start sitting on the sidelines. I think that's
one of the kind of the real tough questions that
we'll have to keep asking.
Speaker 4 (19:07):
Good volatiotea and bad voltotea And I okay, so away
from the banks, what else are we watching this morning?
Speaker 9 (19:12):
In AMA earnings?
Speaker 1 (19:13):
Yeah, so look, we're getting some really interesting updates from
across the board. BP first quarter earnings are out, and
you know, we were just talking about buybacks. They were
able to announce a buydock on the lower end of
the guidance, So that's not going to be great. BP's
been under pressure right that oil price slide amid all
of this uncertainty and also the increase in supply that
(19:34):
we've seen in the market. That's really difficult for them,
and you know the automotive sector as well. Porsche cut
it's full year operating return. This is a company that's
really in the crosshairs of these Transatlantic tariffs because they
produce a lot of their luxury vehicles in Europe and
then export them to the United States.
Speaker 9 (19:52):
That's difficult for them.
Speaker 1 (19:54):
So yeah, more earnings on automotive coming this week as well.
Speaker 15 (19:58):
This is Bloomberg day Break Europe, your morning brief on
the stories making news from London to Wall Street and beyond.
Speaker 3 (20:05):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 15 (20:11):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 3 (20:16):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 5 (20:24):
I'm Caroline Hepka and.
Speaker 9 (20:25):
I'm Stephen Carroll.
Speaker 15 (20:26):
Join us again tomorrow morning for all the news you
need to start your day Right here on Bloomberg day
Break Europe.
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