May 23, 2025 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) The Trump Administration blocked Harvard University from enrolling international students, delivering a major blow to the school and escalating its fight with elite colleges to unprecedented levels.
(2) Former US Treasury Secretary Lawrence Summers blasted the Trump administration’s decision to block Harvard University from enrolling international students, calling on the institution to fight back.
(3) The US Supreme Court shielded the Federal Reserve from Donald Trump’s push to fire top officials at independent federal agencies, in a decision likely to quell concerns that the president might move to fire Jerome Powell.
(4) President Donald Trump cut a deal with blue-state Republicans on taxes and put down an 11th-hour rebellion by conservatives over spending to get his “one big, beautiful bill” passed by the House.
(5) European Central Bank President Christine Lagarde warned that international trade will be changed forever by the tensions over tariffs, even as the world’s leading economies edge toward some compromises.
(6) Apple is aiming to release smart glasses at the end of next year as part of a push into AI-enhanced gadgets, but it has shelved plans for a smartwatch that can analyze its surroundings with a built-in camera.
Podcast Conversation: Meet the Chefs Creating Incredible, Innovative Caribbean Food in London
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Dayvacate podcast, available every morning on Apple, Spotify,
or wherever you listen. It's Friday, the twenty third of
May in London. I'm Caroline Hepka. Coming up today, the
Trump administration blocks Harvard from enrolling foreign students and warns
other universities could be next. The yield on thirty year
treasuries heads back above five percent as Trump's Big Beautiful
(00:33):
tax bill moves to the Senate. Plus Seeing into the Future,
Apple hopes to release a set of smart glasses by
the end of next year. Let's start with the roundup
of our top stories. The Trump administration has blocked Harvard
University from enrolling international students. In a statement, the US
Department of Homeland Security accused Harvard of fostering antisemitism, while
(00:55):
also claiming that the institution's leadership was coordinating with the
Chinese Communist Party. Speaking on Fox News, Homeland Security Sectary
Christie Nome warned that the administration is considering blocking international
enrollment at other universities.
Speaker 3 (01:11):
There should be a warning to every other university to
get your act together. Get your act together, because we
are coming to make sure that these programs that you
are facilitating an environment where students can learn, where they're safe,
and that they're not discriminated against based on their race
or their religion. Anti Semitism will not be stood for
in any participation with a country or an entity or
(01:32):
a terrorist group that hates America and perpetuates this kind
of violence, we will stop it.
Speaker 2 (01:39):
Christi Nome appearing there on Fox News as the administration
said that existing international students must transfer or lose their
legal status in the US. The response from Harvard that
the government's latest action is unlawful. Harvard President emeritus and
former US Treasury Secretary Larry Summers blasted the Trump administer's decision,
(02:01):
saying that it goes against the principles of democracy.
Speaker 4 (02:04):
Harvard has a clear necessity right now resist and reform.
Resist because this is the stuff of tyranny. And if
an institution like Harvard, with.
Speaker 5 (02:19):
A fifty two billion dollar endowment, with the staggering of
network of alumni that we have, if it can't resist
these kinds of movements towards tyranny, I don't know what
other American institution will be able to do that.
Speaker 2 (02:37):
Larry Summers speaking there to Bloomberg, the blockade on international
student enrollment will compound the financial pressures for Harvard. The
Trump administration has already frozen more than two point six
billion dollars of funding for the university and cut off
future grants over the school's handling of alleged anti Semitism
(02:57):
and government demands for more over site. Meanwhile, the US
Supreme Court has shielded the Federal Reserve on President Trump's
push to fire top officials at independent federal agencies. In
a ruling on Thursday that allowed the administration to oust
officials to other agencies, It called the FED a uniquely structured,
(03:19):
quasi private entity. The decision will likely quell concerns about
the ability of the President to fire FED chair Jerown Powell.
President Trump sent conflicting signals last month, saying that Powell's
termination cannot come fast enough, before then telling reporters he
had no intention of firing him. US House Republicans have
(03:41):
passed a major tax cup bill, which is increasingly giving
the bond market indigestion. The Senate is yet to weigh
in on the bill, which promises to extend tax cards
from President Trump's first term in office with added exemptions.
Principal Asset Management's chief Global strut to just Seema Shah
says the package is on a collision course with the
(04:04):
markets increasingly.
Speaker 6 (04:05):
It feels like this administration is going to have to
confront the problems because the bond marker has lost patients
and it's really going to force the issue through to
make sure that there is some realization that continuing to
expand its deficit its debt numbers indefinitely is simply not
something which can continue.
Speaker 2 (04:23):
Sima Shah adds that she already sees pressure in ecity
markets from high bond yields and warns that that may grow.
The thirty year treasury bond touched five point one five
percent yesterday before pairing back to five spots zero nine.
US President Donald Trump initiated a phone call with Japan's
Prime Minister Shagero Issuba and discussed tariffs for the first
(04:46):
time since April. The conversation between the two leaders comes
as Tokyo's top negotiator travels to the US for another
round of trade talks. According to Ishaba, President Trump avoided
saying anything specific about tariffs, whilst he for his part,
reiterated Japan's existing stance on levees. The two agreed that
they're looking forward to meeting in person at a Group
(05:08):
of Seven leaders gathering in June in Canada. According to Ishiba,
Christine Lagarde has warned international trade will never be the
same after US tariff tensions. This was during an interview
with the Canadian Broadcasting Corporation, speaking on the sidelines of
the G seven finance officials meeting. The ECB president did
note that she expects further negotiations over international levees. In
(05:32):
a separate interview, Legard said that the impact of tariff's
on inflation is hard to gauge for European policy makers,
making it a quote delicate situation. ECB officials are widely
expected to lower boring costs in two weeks time, with
inflation heading towards the two percent goal in Europe and
(05:53):
US tariffs also weighing on the European economy now here.
In the UK, consumer confidence rebounded slow lightly in May
on the back of trade deals and an interest rate cut.
GfK's sentiment gauge surprise upraas rising three points from April
two minus twenty. Bloomberg's James Walcock.
Speaker 7 (06:13):
Has the story rising bills, fears around growth and global
economic uncertainty. You'd expect a healthy dose of negativity, but
consumers seem to be looking on the bright side of life.
The latest GfK survey's upward surprise suggests the Labor government's
series of deals is shifting the public mood marginally upwards.
(06:33):
But will the sentiment feed through into reality, particularly GDP
and spending metrics. That is what the government will be
hoping in London James Walcock, Bloomberg Radio.
Speaker 2 (06:44):
And lastly, Apple is aiming to release new smart glasses
at the end of next year as part of its
push into AI enhanced gadgets. Exclusive reporting by Bloomberg reveals
engineers that the company are ramping up work on the product,
with prototypes expected by the air of this year. The
glasses would have cameras, microphones, and speakers to take Siri
(07:05):
requests and analyze the world around the user. The tech
chunt is looking to challenge competition from rivals including Meta,
known for their AI ray bands. And those are our
top stories for you this morning. So in terms of
the market, saying Asian shares are rebounding, THEMSCR Asia Pacific
index is actually up half of one percent, and you've
got gains across Asia this morning. Thinking about stock futures,
(07:29):
then for the US, we're pretty range bound. Actually, the
sm P five hundred emini is not going anywhere. Your
SOX fifty futures are up by a tenth of one percent.
Bonds and the dollar gained on Thursday. You've got, though
the dollar resuming weakness this morning, down by three tenths
of one percent. And of course we've been closely watching
long term borrowing costs, the thirty year yesterday, which remains
(07:52):
above a five percent this morning, looking at the ten
year US yields we trade now for fifty three, Bitcoin
has drifted and oil prices are down. Gold though higher
six tenths of one percent. So that's a look at
the markets now. In a moment, we're going to bring
you more on today's top story, the Trump administrations fight
with Harvard and the growing unease in bond markets about
(08:16):
President Trump's tax and spending bill, which squeaked through a
vote in Congress on Thursday. But before we get to those,
another story that caught my eye today. I know, you
know we're obsessed with food, but This story did catch
my eye because now I have some great FOODI recommendations
for London from the wonderful Aileen Bagbo who's been writing
about chefs creating incredible, innovative Caribbean food in London and
(08:41):
they're on a mission, she says, to bring recognition and
a Michelin star to their cuisine. So she's been talking
to people like Dominic Taylor, who has a new restaurant
in ladbut Grove in London if you're a resident in
the city after his standout residency at the Palm Court
at the Langham Hotel. His dishes including rum raised in
pork belly, crispy spice, banana blossoms. Yes, maybe I'm hungry,
(09:04):
it's Friday morning. But she's also spoken to a lot
of other chefs, including Jason Howard, and she lists a
lot of different restaurants in London like Soul Mamma in
Stratford and Jam Delish in Islington. Anyway, gave me inspiration
from my weekend. I hope it's inspired you to go
out and eat something delicious in London. I'll put a
note actually in our show. Notes to the story by
(09:27):
Eileen of Bagbert at Bloomberg so that you can get
all the details. Now, the Trump administration has blocked Harvard
University film enrolling international students, citing the university's failure to
condemn anti semitism. It is a major escalation of a
fight with elite US universities. You only me now has
been both EMA News director ross In matheson Morning Ross.
(09:48):
How does the Trump administration justify this? What does it
say about revoking Harvard's student and exchange visitor program, which
is the official name.
Speaker 8 (09:57):
Well, that's right, as you say they're threatening to do this,
the actually get and Harvard seventy two hours to come good.
And what they say is they've been trying to get
Harvard to turn over a lot of information on their students,
so some of the student records, their own internal records
for disciplinary action if any video footage and so on.
Because the broader allegation, of course, is that Harvard has
(10:18):
fostered a climate of antisemitism in its student body and
on campus as a whole, and that Harvard has actually
apologized for that already saying that yes, there was some
antisemitism related to protests over Israel's war in Gaza, but
equally it's been declining to turn this information over, and
(10:39):
so now we see the escalation, which is, if you
don't turn this over in seventy two hours, we're going
to make it impossible for you to have international students,
which would be a massive, massive escalation for Harvard and
really call into questions the university. It's been around for
hundreds of years, but if you thirty percent of your
student body come from abroad, the question is what does
(11:02):
it do to Harvard's ability to keep going?
Speaker 2 (11:04):
So what's the university saying and doing about this?
Speaker 8 (11:07):
So Harvard says that they defend the right to have
international students, that they welcome international students, they're working to
be able to preserve this, and that they have students
from one hundred and forty countries around the world. And
they point out it doesn't just enrich Harvard, the university,
but obviously the greater area because Harvard students come and
(11:27):
pay tuition, but they also come and eat, live, spend
and so on, and so you're talking about quite a
big part of the economy as well for the US.
And so they haven't said what they're going to do,
if anything legally, of course, there's other legal action going
on with Harvard over some of the funding that's been
(11:48):
frozen or lost two point six billion dollars of it.
And so do they go down the route do they
argue that due process was not followed here? If they're
going to do legal action, you'd imagine that have to
announce that pretty quickly.
Speaker 2 (11:59):
Yeah, it's a huge part of America's soft power, isn't it.
Larry Sommers was sort of talking about that that these
students coming from on Board, they create businesses, they invent things.
You know, they're the best and the brightest, you know,
according to him. Anyway, Homeland Security Secutary Christy Nome though,
was clear, wasn't she that in terms of the warning
to other universities that they need to get their act together,
(12:21):
what do you think is going to mean for higher
education in the US?
Speaker 8 (12:25):
Well, we can also see potential warnings against Columbia University.
So it's not just Harvard that seems to be targeted
here potentially, and as you say, the broader message around
international students, but not just students but academics. This goes
to the heart really of the ability of the US
to bring in smart people to do science, to do research,
(12:49):
to innovate and to contribute to the US economy through that.
And do those people rather than going into the US
start to look to go elsewhere. So you can see,
we get all those questions around brain drain that come up.
Do academics to students up to go elsewhere? And so
do you see the US Bitberg bit slowly lose out?
Speaker 9 (13:10):
Yeah?
Speaker 2 (13:11):
Okay, Well, thank you so much for being with us
this morning. Certainly caught the attention of our readers. They
are the most well read stories at the moment. Two
or three of the top red stories on the Bloomberg
terminal around Harvard. That was Bloomberg's EMEA News director Roslyn Matheson. Now,
President Trump has passed his tax bill in the House.
Now the signature legislative package goes to the Senate. But
(13:32):
the bond markets showing the unease of investors. Thirty US
treasury yields reached a peak of five point one five
percent in the US this week. Our Bloomberg Markets Live trashes.
Mary Nicola joins me this morning, Hi, Mary, how much
are the bond markets? Good morning? How much are the
bond markets dislike even hate this Trump tax cut bill?
Speaker 9 (13:52):
Yeah, it's very clear that the pressure is going to
remain on the bond markets because it's the overall tax
bill has been more about tax cuts than spending cuts,
and that is obviously not sitting well with bond markets,
with bond investors. And of course, now that it's past
the House, it's going to go to the Senate, and
(14:12):
of course that's going to be a drawn out process
as well. So tensions aren't going anywhere in the bond markets,
and I think if you look at the longer end,
I think they're likely to stay elevated for quite some
time as the focus shifts and fot on physical sustainability
and how much can this actually hold up?
Speaker 6 (14:35):
Yeah?
Speaker 2 (14:35):
Absolutely, It passed two hundred and fifteen to two hundred
and fourteen votes in the House, so it really was closed.
The job administration argues the bill will boost and increase
business sentiment, unlock spending and investment. It's promising growth effectively.
Is that not enough?
Speaker 9 (14:52):
Especially with what's happening on the terariff side, And there's
still a lot of uncertainty. So if we look at
what we saw from corporate earnings in corporate outlooks, the
main thing, Yes, corporate earnings were fine, but it was
the outlooks. The outlooks were concerning. There was a lot
of murkiness surrounding the outlook for a lot of companies,
with even some questioning you know how things would unfold,
(15:16):
especially with retailers and Walmart even raising concerns about increasing
price prices over the next few months. So if you
still have that policy uncertainty, it may not be enough
to so with the terriff uncertainty, it may not be
enough to overshadow some of the benefits that can come
(15:38):
through from the tax bill, and of course the fact
that you don't have fiscal sustainability as well, that's going
to keep markets nervous.
Speaker 1 (15:48):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (15:55):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 1 (16:01):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:06):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 1 (16:14):
I'm Caroline Hepka and I'm Stephen Carroll. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak.
Speaker 8 (16:22):
Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Dayvacate podcast, available every morning on Apple, Spotify,
or wherever you listen. It's Friday, the twenty third of
May in London. I'm Caroline Hepka. Coming up today, the
Trump administration blocks Harvard from enrolling foreign students and warns
other universities could be next. The yield on thirty year
treasuries heads back above five percent as Trump's Big Beautiful
(00:33):
tax bill moves to the Senate. Plus Seeing into the Future,
Apple hopes to release a set of smart glasses by
the end of next year. Let's start with the roundup
of our top stories. The Trump administration has blocked Harvard
University from enrolling international students. In a statement, the US
Department of Homeland Security accused Harvard of fostering antisemitism, while
(00:55):
also claiming that the institution's leadership was coordinating with the
Chinese Communist Party. Speaking on Fox News, Homeland Security Sectary
Christie Nome warned that the administration is considering blocking international
enrollment at other universities.
Speaker 3 (01:11):
There should be a warning to every other university to
get your act together. Get your act together, because we
are coming to make sure that these programs that you
are facilitating an environment where students can learn, where they're safe,
and that they're not discriminated against based on their race
or their religion. Anti Semitism will not be stood for
in any participation with a country or an entity or
(01:32):
a terrorist group that hates America and perpetuates this kind
of violence, we will stop it.
Speaker 2 (01:39):
Christi Nome appearing there on Fox News as the administration
said that existing international students must transfer or lose their
legal status in the US. The response from Harvard that
the government's latest action is unlawful. Harvard President emeritus and
former US Treasury Secretary Larry Summers blasted the Trump administer's decision,
(02:01):
saying that it goes against the principles of democracy.
Speaker 4 (02:04):
Harvard has a clear necessity right now resist and reform.
Resist because this is the stuff of tyranny. And if
an institution like Harvard, with.
Speaker 5 (02:19):
A fifty two billion dollar endowment, with the staggering of
network of alumni that we have, if it can't resist
these kinds of movements towards tyranny, I don't know what
other American institution will be able to do that.
Speaker 2 (02:37):
Larry Summers speaking there to Bloomberg, the blockade on international
student enrollment will compound the financial pressures for Harvard. The
Trump administration has already frozen more than two point six
billion dollars of funding for the university and cut off
future grants over the school's handling of alleged anti Semitism
(02:57):
and government demands for more over site. Meanwhile, the US
Supreme Court has shielded the Federal Reserve on President Trump's
push to fire top officials at independent federal agencies. In
a ruling on Thursday that allowed the administration to oust
officials to other agencies, It called the FED a uniquely structured,
(03:19):
quasi private entity. The decision will likely quell concerns about
the ability of the President to fire FED chair Jerown Powell.
President Trump sent conflicting signals last month, saying that Powell's
termination cannot come fast enough, before then telling reporters he
had no intention of firing him. US House Republicans have
(03:41):
passed a major tax cup bill, which is increasingly giving
the bond market indigestion. The Senate is yet to weigh
in on the bill, which promises to extend tax cards
from President Trump's first term in office with added exemptions.
Principal Asset Management's chief Global strut to just Seema Shah
says the package is on a collision course with the
(04:04):
markets increasingly.
Speaker 6 (04:05):
It feels like this administration is going to have to
confront the problems because the bond marker has lost patients
and it's really going to force the issue through to
make sure that there is some realization that continuing to
expand its deficit its debt numbers indefinitely is simply not
something which can continue.
Speaker 2 (04:23):
Sima Shah adds that she already sees pressure in ecity
markets from high bond yields and warns that that may grow.
The thirty year treasury bond touched five point one five
percent yesterday before pairing back to five spots zero nine.
US President Donald Trump initiated a phone call with Japan's
Prime Minister Shagero Issuba and discussed tariffs for the first
(04:46):
time since April. The conversation between the two leaders comes
as Tokyo's top negotiator travels to the US for another
round of trade talks. According to Ishaba, President Trump avoided
saying anything specific about tariffs, whilst he for his part,
reiterated Japan's existing stance on levees. The two agreed that
they're looking forward to meeting in person at a Group
(05:08):
of Seven leaders gathering in June in Canada. According to Ishiba,
Christine Lagarde has warned international trade will never be the
same after US tariff tensions. This was during an interview
with the Canadian Broadcasting Corporation, speaking on the sidelines of
the G seven finance officials meeting. The ECB president did
note that she expects further negotiations over international levees. In
(05:32):
a separate interview, Legard said that the impact of tariff's
on inflation is hard to gauge for European policy makers,
making it a quote delicate situation. ECB officials are widely
expected to lower boring costs in two weeks time, with
inflation heading towards the two percent goal in Europe and
(05:53):
US tariffs also weighing on the European economy now here.
In the UK, consumer confidence rebounded slow lightly in May
on the back of trade deals and an interest rate cut.
GfK's sentiment gauge surprise upraas rising three points from April
two minus twenty. Bloomberg's James Walcock.
Speaker 7 (06:13):
Has the story rising bills, fears around growth and global
economic uncertainty. You'd expect a healthy dose of negativity, but
consumers seem to be looking on the bright side of life.
The latest GfK survey's upward surprise suggests the Labor government's
series of deals is shifting the public mood marginally upwards.
(06:33):
But will the sentiment feed through into reality, particularly GDP
and spending metrics. That is what the government will be
hoping in London James Walcock, Bloomberg Radio.
Speaker 2 (06:44):
And lastly, Apple is aiming to release new smart glasses
at the end of next year as part of its
push into AI enhanced gadgets. Exclusive reporting by Bloomberg reveals
engineers that the company are ramping up work on the product,
with prototypes expected by the air of this year. The
glasses would have cameras, microphones, and speakers to take Siri
(07:05):
requests and analyze the world around the user. The tech
chunt is looking to challenge competition from rivals including Meta,
known for their AI ray bands. And those are our
top stories for you this morning. So in terms of
the market, saying Asian shares are rebounding, THEMSCR Asia Pacific
index is actually up half of one percent, and you've
got gains across Asia this morning. Thinking about stock futures,
(07:29):
then for the US, we're pretty range bound. Actually, the
sm P five hundred emini is not going anywhere. Your
SOX fifty futures are up by a tenth of one percent.
Bonds and the dollar gained on Thursday. You've got, though
the dollar resuming weakness this morning, down by three tenths
of one percent. And of course we've been closely watching
long term borrowing costs, the thirty year yesterday, which remains
(07:52):
above a five percent this morning, looking at the ten
year US yields we trade now for fifty three, Bitcoin
has drifted and oil prices are down. Gold though higher
six tenths of one percent. So that's a look at
the markets now. In a moment, we're going to bring
you more on today's top story, the Trump administrations fight
with Harvard and the growing unease in bond markets about
(08:16):
President Trump's tax and spending bill, which squeaked through a
vote in Congress on Thursday. But before we get to those,
another story that caught my eye today. I know, you
know we're obsessed with food, but This story did catch
my eye because now I have some great FOODI recommendations
for London from the wonderful Aileen Bagbo who's been writing
about chefs creating incredible, innovative Caribbean food in London and
(08:41):
they're on a mission, she says, to bring recognition and
a Michelin star to their cuisine. So she's been talking
to people like Dominic Taylor, who has a new restaurant
in ladbut Grove in London if you're a resident in
the city after his standout residency at the Palm Court
at the Langham Hotel. His dishes including rum raised in
pork belly, crispy spice, banana blossoms. Yes, maybe I'm hungry,
(09:04):
it's Friday morning. But she's also spoken to a lot
of other chefs, including Jason Howard, and she lists a
lot of different restaurants in London like Soul Mamma in
Stratford and Jam Delish in Islington. Anyway, gave me inspiration
from my weekend. I hope it's inspired you to go
out and eat something delicious in London. I'll put a
note actually in our show. Notes to the story by
(09:27):
Eileen of Bagbert at Bloomberg so that you can get
all the details. Now, the Trump administration has blocked Harvard
University film enrolling international students, citing the university's failure to
condemn anti semitism. It is a major escalation of a
fight with elite US universities. You only me now has
been both EMA News director ross In matheson Morning Ross.
(09:48):
How does the Trump administration justify this? What does it
say about revoking Harvard's student and exchange visitor program, which
is the official name.
Speaker 8 (09:57):
Well, that's right, as you say they're threatening to do this,
the actually get and Harvard seventy two hours to come good.
And what they say is they've been trying to get
Harvard to turn over a lot of information on their students,
so some of the student records, their own internal records
for disciplinary action if any video footage and so on.
Because the broader allegation, of course, is that Harvard has
(10:18):
fostered a climate of antisemitism in its student body and
on campus as a whole, and that Harvard has actually
apologized for that already saying that yes, there was some
antisemitism related to protests over Israel's war in Gaza, but
equally it's been declining to turn this information over, and
(10:39):
so now we see the escalation, which is, if you
don't turn this over in seventy two hours, we're going
to make it impossible for you to have international students,
which would be a massive, massive escalation for Harvard and
really call into questions the university. It's been around for
hundreds of years, but if you thirty percent of your
student body come from abroad, the question is what does
(11:02):
it do to Harvard's ability to keep going?
Speaker 2 (11:04):
So what's the university saying and doing about this?
Speaker 8 (11:07):
So Harvard says that they defend the right to have
international students, that they welcome international students, they're working to
be able to preserve this, and that they have students
from one hundred and forty countries around the world. And
they point out it doesn't just enrich Harvard, the university,
but obviously the greater area because Harvard students come and
(11:27):
pay tuition, but they also come and eat, live, spend
and so on, and so you're talking about quite a
big part of the economy as well for the US.
And so they haven't said what they're going to do,
if anything legally, of course, there's other legal action going
on with Harvard over some of the funding that's been
(11:48):
frozen or lost two point six billion dollars of it.
And so do they go down the route do they
argue that due process was not followed here? If they're
going to do legal action, you'd imagine that have to
announce that pretty quickly.
Speaker 2 (11:59):
Yeah, it's a huge part of America's soft power, isn't it.
Larry Sommers was sort of talking about that that these
students coming from on Board, they create businesses, they invent things.
You know, they're the best and the brightest, you know,
according to him. Anyway, Homeland Security Secutary Christy Nome though,
was clear, wasn't she that in terms of the warning
to other universities that they need to get their act together,
(12:21):
what do you think is going to mean for higher
education in the US?
Speaker 8 (12:25):
Well, we can also see potential warnings against Columbia University.
So it's not just Harvard that seems to be targeted
here potentially, and as you say, the broader message around
international students, but not just students but academics. This goes
to the heart really of the ability of the US
to bring in smart people to do science, to do research,
(12:49):
to innovate and to contribute to the US economy through that.
And do those people rather than going into the US
start to look to go elsewhere. So you can see,
we get all those questions around brain drain that come up.
Do academics to students up to go elsewhere? And so
do you see the US Bitberg bit slowly lose out?
Speaker 9 (13:10):
Yeah?
Speaker 2 (13:11):
Okay, Well, thank you so much for being with us
this morning. Certainly caught the attention of our readers. They
are the most well read stories at the moment. Two
or three of the top red stories on the Bloomberg
terminal around Harvard. That was Bloomberg's EMEA News director Roslyn Matheson. Now,
President Trump has passed his tax bill in the House.
Now the signature legislative package goes to the Senate. But
(13:32):
the bond markets showing the unease of investors. Thirty US
treasury yields reached a peak of five point one five
percent in the US this week. Our Bloomberg Markets Live trashes.
Mary Nicola joins me this morning, Hi, Mary, how much
are the bond markets? Good morning? How much are the
bond markets dislike even hate this Trump tax cut bill?
Speaker 9 (13:52):
Yeah, it's very clear that the pressure is going to
remain on the bond markets because it's the overall tax
bill has been more about tax cuts than spending cuts,
and that is obviously not sitting well with bond markets,
with bond investors. And of course, now that it's past
the House, it's going to go to the Senate, and
(14:12):
of course that's going to be a drawn out process
as well. So tensions aren't going anywhere in the bond markets,
and I think if you look at the longer end,
I think they're likely to stay elevated for quite some
time as the focus shifts and fot on physical sustainability
and how much can this actually hold up?
Speaker 6 (14:35):
Yeah?
Speaker 2 (14:35):
Absolutely, It passed two hundred and fifteen to two hundred
and fourteen votes in the House, so it really was closed.
The job administration argues the bill will boost and increase
business sentiment, unlock spending and investment. It's promising growth effectively.
Is that not enough?
Speaker 9 (14:52):
Especially with what's happening on the terariff side, And there's
still a lot of uncertainty. So if we look at
what we saw from corporate earnings in corporate outlooks, the
main thing, Yes, corporate earnings were fine, but it was
the outlooks. The outlooks were concerning. There was a lot
of murkiness surrounding the outlook for a lot of companies,
with even some questioning you know how things would unfold,
(15:16):
especially with retailers and Walmart even raising concerns about increasing
price prices over the next few months. So if you
still have that policy uncertainty, it may not be enough
to so with the terriff uncertainty, it may not be
enough to overshadow some of the benefits that can come
(15:38):
through from the tax bill, and of course the fact
that you don't have fiscal sustainability as well, that's going
to keep markets nervous.
Speaker 1 (15:48):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (15:55):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 1 (16:01):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:06):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 1 (16:14):
I'm Caroline Hepka and I'm Stephen Carroll. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak.
Speaker 8 (16:22):
Europe
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.