May 27, 2025 • 21 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) A 53-year-old man has been arrested after a car ploughed into a crowd of people during Liverpool's Premier League victory parade. Merseyside Police said the suspect was white, British and from the Liverpool area.
(2) The European Union said it agreed to accelerate negotiations with the US to avoid a transatlantic trade war, signaling a more amicable approach just days after President Donald Trump criticized the bloc for taking advantage of the US and slow-walking talks.
(3) President Donald Trump’s erratic policies offer a “prime opportunity” to strengthen the euro’s international role and allow the currency bloc to enjoy more of the privileges so far reserved for the US, European Central Bank President Christine Lagarde said.
(4) NATO Secretary General Mark Rutte confirmed the alliance will seek to adopt a new defense spending target of 5% of GDP at a June summit, meeting a demand by US President Donald Trump that had originally seemed unrealistic.
(5) Freed from the clutches of government ownership, NatWest Group Plc is getting ready to chart its own course for the first time in almost two decades.
(6) The UK government plans to train 120,000 British builders, engineers and care workers as it tries to curb migration without worsening skill shortages.
(7) King Charles III arrived in Canada to open a new parliamentary session at the invitation of Prime Minister Mark Carney, a move designed in part to send a message to US President Donald Trump about the northern country’s sovereignty.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg daybreakur podcast, available every morning on Apple,
Spotify or wherever you listen. It's Tuesday, the twenty seventh
of May. Here in London. I'm Caroline Hepka coming up today.
A horrific incident, the words of Prime Minister Kiss Starmer,
after a car drives into crowds at Liverpool's Premier League
trophy parade. The US and EU agree to fast track
(00:32):
trade negotiations as President Trump pauses fifty percent tariffs on
the block. And seventeen years after the bailout, nat West
is preparing for life after government ownership with an Ion
acquisitions and wealth management. Let's start with a roundup of
our top stories. Twenty Seven people, including four children, have
(00:52):
been injured after a car drove into crowds of people
during Liverpool's Premier League victory parade. A fifty three year
old British man has been arrested. Merseyside Police Assistant Chief
Constable Jenny Simms says that they are not looking for
anyone else.
Speaker 3 (01:09):
I know that people will understandably be concerned by what
has happened tonight. What I can tell you is that
we believe this to be an isolated incident. The incident
is not being treated as terrorism.
Speaker 2 (01:24):
Merseyside Police, speaking there as the local FI service reported
that four people, including a child, were lifted from beneath
the car. In a statement, Prime Minister Keir Starmer said
Liverpool stands together and the whole country stands with Liverpool.
Liverpool Football Club says its thoughts and prayers are with
those injured.
Speaker 4 (01:44):
So that our top story this morning.
Speaker 2 (01:46):
Now, let's think about the European Union, which says that
it has agreed to accelerate negotiations with the US to
avoid a transatlantic trade war. The move to fast track
trade tours comes after a phone call between the EU
Commissioned President Slavonteline and the US President Donald Trump. Following
the call, President Trump also extended the deadline to impose
fifty percent tariffs on the EU to the ninth of
(02:09):
July to allow more time for negotiations. While the EU
has said that its priority is to find a negotiated
solution with the US, it has also been preparing to
retaliate with its own levees if needed. European Central Bank
President Christine Leaguard says that the White House's erratic policies
are an opportunity for the Euro. In a speech, the
(02:32):
Guard suggested that America could be undermining the dollar's role
as the world's reserve currency. She says that this could
be the moment the Euro goes global.
Speaker 5 (02:42):
Moments of change can also be moments of opportunity. The
ongoing changes create the opening for a global euro moment,
and this is a prime opportunity for Europe to take
greater control of its own destiny. But let's not follow ourselves.
It is not the privilege that will be bestowed upon us.
Speaker 2 (03:05):
The ECB president called for a closer single market and
more joint EU financing to make the block more financially attractive. Currently,
the dollar makes up roughly sixty percent of sovereign currency
reserves around the world, compared to the euro at twenty percent.
Dutch pension fund PME is issuing a blanket warning to
the US financial sector about caving in to pressure from
(03:28):
the Trump administration to abandon basic principles. The fund, with
sixty five billion dollars worth of assets under management, says
that if firms stay silent on Trump's policies, they could
lose the right to manage its money. Bloomberg's James Orcock
has the story.
Speaker 6 (03:45):
PME says there is a fundamental divide between European values
and the Trump administration. The Dutch Fund is considering changing
its ESG metrics to exclude money managers who don't stand
up for environment and diversity goals. Put their five billion
dollar mandate with black Rock under a view after the
asset manager quit a net zero coalition. More worryingly for Americans,
(04:08):
PME and not alone state streets have already lost mandates
in Scandinavia and the UK, and ali Anders, warning the
US may no longer offer a reliable investment runway In London.
Speaker 7 (04:19):
James Wilcock Bloomberg Radio.
Speaker 2 (04:21):
NATO Secretary General says that member states are moving towards
spending five percent of their GDP on defense. Speaking doing
a televised question and answer session, Mark Rutter confirmed the target,
which meets a demand by US President Donald Trump that
was originally deemed unrealistic.
Speaker 8 (04:40):
I assume that indyak we will agree on a higher
defense spend target of in total five percent. Sorry I
would not mention that, but at least I did it now.
But let's say that it's five percent, but I will
not say what is the NFL or breakup, but it
will be considerably norse for three percent when it comes
to the heart spent, and it will be also a
(05:02):
target on defensely later spending. We need this because all
of us we can never ever ever reach the capability
targets we have to.
Speaker 2 (05:10):
Reach NATO sexually. General Marco Rutter's comments his first public
endorsement of the figure as a target for the Defense Alliance.
It comes as German Chancellor Fredrik Mertz said that Ukraine
has been given permission to use weapons from its allies
to launch strikes inside Russia with no range limits. Now
(05:32):
to the UK, there are plans to train one hundred
and twenty thousand British builders, engineers and care workers as
the country tries to curb migration without worsening the skills shortage.
The government plans to use three billion pounds plus higher
taxes on foreign workers to fund new apprenticeships in key sectors.
(05:54):
The drive highlights a problem for Labor, who wants to
oversee both of boom in building whilst also cutting down
on migration, so a central issue for the ruling Labor party.
And lastly, to King Charles. He has arrived in Canada
on his first visit to the country as it's head
of state. He's in Ottawa to open a new parliament.
(06:16):
At the invitation of Prime Minister Mark Carney. He will
read the Throne Speech setting out his government's agenda in Canada.
Bloomberg reports it's partly a move designed to send US
President Donald Trump a message about Canada's sovereignty after he
said that he wants it to become America's fifty first state.
Prime Minister Mark Carney says that that won't happen and
(06:38):
he is pleased to welcome the King to Canada. I
asked the King when I visited the United Kingdom in March,
within days of my becoming Prime Minister the first time.
His Majesty was very receptive and we're honored by his visitors.
Prime Minister Mark Carney speaking there as the Monarch prepares
to read the speech to Parliament for the first time.
Sin's nineteen seventy seven, an honor that is normally reserved
(07:01):
for the Governor General in Canada. So those are a
few of our top stories for you this morning. Let's
have a look at the markets. So European stocks jumped
yesterday because of the delay in US tariffs. They were
up one percent of the close Automotive and industrial goods
were amongst the leading gains. Futures, though, for European stocks
(07:21):
are down almost two tenths of one percent this hour.
S and P five hundred EMNI futures are soaring up
by nine tenths of one percent. The green back this
morning down for a third day on the Bloomberg Dollar
Spot Index, and we're down something like more than seven
percent for the dollar this year, So that's a major
topic we'll be thinking about today. Tenny US treasury yields
(07:41):
dropping three basis points at four to forty eight, Japan's
long end yields declining sharply after hitting a record last week.
There's an important debt auction on Wednesday for forty year
notes that's going to be closely watched. And then don't
forget today the start of a big run of US
data out, including US durable goods and consumer confidence data.
Speaker 4 (08:01):
Today.
Speaker 2 (08:02):
Right, those are the markets, and now in a moment,
we are going to be a big you. More details
on the jubilation that turned into devastation in Liverpool over
the weekend, and also this warning to US asset managers
about what it means if they follow Trump administration policies
(08:23):
perhaps too closely, ones which clash maybe with European values.
So we'll get into that in just a moment. But
there was another story that cornhile. I don't know whether
you've managed to see it yet. This is Tom Cruise
and of course his Mission Impossible movie that was a
huge hit over the weekend. There's a great piece by
(08:44):
Tony Cabatchio over the weekend. Tom Cruise really did get
a US aircraft carrier for the mission. Yeah, it's completely bonkers.
The US Navy and Air Force Special Operations they decided
to accept the mission and to help Cruise's secret agent
Ethan Huh and save the world, or at least to
make a bit of the movie about it. This is
(09:04):
the story on the blue Egg Turtle that has kind
of fascinated all of us the Final Reckoning. Of course,
Paramount reported a blowout budget for this movie four hundred
million dollars. Got a break though, because the carrier and
crew were already on schedule training missions, so they managed
to sort of get that assistance. Most if not all,
(09:27):
of the aircraft time was logged as official training requirements
and therefore not reimbursable, according to the Pentagon. Sadly, I've
not seen this movie yet, but I bet a lot
of you already have. It had a massive weekend, didn't it.
So one of the stories that I've been reading about
this morning, and the helping hand for one of America's
biggest stars. Now, let's turn back to our top story
(09:51):
this morning, a car plowed into crowds of Liverpool fans
who were celebrating their team winning the Premier League, leaving
almost fifty people injured. Join me now bergs a Tia
at a bio. Good morning, Tia. This was really awful,
wasn't it. It was such a celebratory weekend, a bank
holiday weekend, and the open top buses and crowds were
(10:12):
out to celebrate this victory, and then it just turned
into devastation.
Speaker 4 (10:16):
What do we know about what happened?
Speaker 9 (10:19):
Yeah, Caroline, as you say, it was supposed to be
a day's celebration for the club and also for the city.
Hundreds of thousands of people had come out to celebrate the.
Speaker 4 (10:28):
Team's Premier League victory.
Speaker 9 (10:29):
It was a victory which had made them arguably the
most successful club in England, so there was this real
sense of jubilation, but that quickly did turn to terror
after the incident that happened on Water Street, which is
in Liverpool's city center, just after six pm on parade day.
Just moments before the incident occurred on Water Street, the
(10:51):
Liverpool FC bus and team had actually just paraded their
Premier League trophy from the top of an open top
bus as you meant, and just to give you a
bit of context, Water Street is just about a mile
before the end of the parade's designated route, so according
to Merseyside Police, a car collided with a number of
(11:13):
pedestrians who were celebrating the victory. The Ambulance Service says
that twenty seven people were taken to hospital in the aftermath,
with two including one child, seriously injured, and a further
twenty people were treated for injuries at the scene and
four people including a child, were lifted from beneath the car.
That's according to Merseyside's Fire chief. So really tragic scenes
(11:36):
happening on what was supposed to be a day of
celebration for the city of Liverpool.
Speaker 2 (11:40):
Yeah, absolutely, it had been a day of celebration and
that the incident took place around six o'clock in the
evening and arrest made.
Speaker 4 (11:48):
What have police said so?
Speaker 9 (11:50):
The Merseyside Police held a press conference yesterday evening and
they also released a statement telling us that a fifty
three year old white British Man has been arrested and
the police do believe him to be the driver of
the vehicle. There are also inquiries into the exact circumstances
leading up to the collision that are underway and specialist
(12:10):
officers have been put in place to support the injured
and their families. The police did also clarify that the
incident is not currently being treated as terrorism and that's
all we have from the police at this time is
they continue their investigations.
Speaker 2 (12:26):
But the response on the club from the Premier League,
from the Prime Minister, a lot of people have made
some comments already.
Speaker 7 (12:33):
Yeah, we have.
Speaker 9 (12:34):
Heard responses from a number of people so far. We've
heard from both the Prime Minister and the leader of
the opposition. So Kis Starma shared his thanks to the
police and the emergency services on x and he said
his thoughts were with those affected and similarly, the Conservative
leader Kemmy Beisenok also shared a similar sentiment on the platform.
(12:57):
Liverpool Football Club is understood to have boned the celebrations
for its own staff due to the incident. We often
forget this is not just the end of a successful
season for Liverpool, but it's the end of a football
season and all clubs really do tend to celebrate that
point in times, the end of a lot of hard
work for the staff. But those celebrations on hold for
(13:17):
the moment. They have confirmed that they're in touch with
the police as investigations continue.
Speaker 4 (13:22):
They said they.
Speaker 9 (13:23):
Will offer their full support and cooperation. They've also shared
thoughts for the victims in a statement, and also their
rivals Everton FC, who neighbor the club, have expressed their support.
They're putting on a united front in the face of
this incident.
Speaker 4 (13:38):
Ok Ti, but thank you so much for being with me.
Speaker 2 (13:41):
Yeah, we are really hoping for the swift recovery of
anybody hurt in that incident. Bluebag's h at at Abio,
thank you for your reporting. Now a US asset managers
are coming under increasing scrutiny and losing mandates with European
pension funds. Amid concerns that America's investment industry is caving
into pressure from the Trump administration on basic principles, including
(14:04):
climate change and on diversity, equity and inclusion. Joining me
now as Bloomberg Senior Editor for US Economics and Government,
Derek Wallbank, Derek, good morning. So there is this Dutch
pension fund huge assets under management PME, which has issued
a warning to US money managers. What are they saying exactly.
Speaker 7 (14:24):
Well, thank you so much and good morning. Look.
Speaker 10 (14:26):
PME is basically saying, quite simply that US funds are
not condemning what Trump is doing, how he's operating, how
he's handling issues including climate change, the judiciary, diversity inclusion,
other things of that nature. It's really a continuation of
a split that we're seeing between Europe and the United
(14:47):
States and a number of different areas.
Speaker 7 (14:50):
Now.
Speaker 10 (14:50):
European funds have the ability to choose who they want
to manage things, you know, and to be involved in.
Speaker 7 (14:59):
What the are doing.
Speaker 10 (15:01):
To put real quite simply, they're taking a moment at
this point, many of them. PM is by far not
alone to say, hang on a second, let's just see
sort of where we are, and if you are aligned
with what we're looking at doing now. I should say
here ESG sort of goes into three buckets.
Speaker 7 (15:20):
Right.
Speaker 10 (15:20):
There's offense you're trying to you're trying to gain alpha
and a differential in returns.
Speaker 7 (15:26):
There's also like defense.
Speaker 10 (15:29):
Of trying to stop having a potential regulatory issue, and
we do see some of these issues cropping up in
regulation as well. And then there's also values, right, and
this is where we're seeing the European funds speaking out.
Speaker 2 (15:44):
Yeah, on State Street has already lost some European pension
money because of this. It looks like US management managers
are basically court, aren't they between the Trump administration and
their goals and the Republican Party maybe more Republican leaning
state And then Europe and European standards.
Speaker 10 (16:03):
Yeah, well, and I mentioned the defense and regulation for
precisely this point, right, because Europe in a lot of ways,
and certainly I'm sitting in Singapore right now, and European
regulations are really a global standard. A lot of firms
have to use the European standards because they tend to
be the toughest. So if you work to the European standard,
you're sort of good throughout the way. The thing is
(16:24):
though in the United States there has been a backlash
too that certainly with some states. Texas is the big
one that have said, and hang on a second, we
don't like the way that you're doing this. We want
it done a different way, and often in polar opposition.
So it is sort of taking these firms, many of
which candidly would prefer to focus.
Speaker 7 (16:44):
On making money, and putting.
Speaker 10 (16:47):
Them a bit between a rock and a hard place
regulatory wise, between Europe and some of these conservative areas.
Speaker 4 (16:55):
Yeah.
Speaker 2 (16:55):
Absolutely, and pme that Dutch pension fund manager says that
it's reviewing and is going to make a decision sort
of shortly and maybe in the next few weeks. Derek,
thank you so much for being with me. We'll be
continuing to track this story, of course, as you say globally. Bloomberg,
Senior editor for US Economics and Government, Derek Wallbank. Now
Here in the UK, the government's expected to confirm that
(17:18):
it has fully divested its holdings in Nowwest, meaning that
the bank will chart its own course nearly twenty years
since it was bailed out in the two thousand and
eight financial crisis. Plyempic's finance reporter will Shaw has been
reporting on this. The government finally stepping back will it
has been a pretty long road though, hasn't it.
Speaker 7 (17:38):
It has.
Speaker 11 (17:39):
So this all goes back seventeen years to the financial
crisis and the collapse of what was then known as
the Royal Bank of Scotland. At the time, the bank
had a two point two trillion pound balance sheet and
around the world it employed nearly two hundred thousand staff.
And the newest that we know today is very different firm.
The balance sheet is just seven hundred and eight billion
(17:59):
pounds and the headcount is less than a third of
what it was at that time, and.
Speaker 7 (18:04):
The intervening period saw huge restructuring.
Speaker 11 (18:07):
In the first five years alone, the bank cut more
than thirty nine thousand jobs and quit over twenty countries,
and it would go on to pivot away for investment banking,
which had got it into the scrape it found itself,
and to focus on domestic commercial and retail banking instead.
Speaker 2 (18:24):
The thing is the sale of the government stake in
that west has not been without controversy. What has the
bailout actually cost UK taxpayers?
Speaker 11 (18:34):
So basically, after the crisis, Westminster made a series of
emergency cash injections that brought the its stake up to
a controlling eighty four percent, and that left UK taxpayers
shouldering a bill of nearly forty six billion pounds. Now
after the final sale, we calculate that the government will
(18:54):
be out of pocket by about ten billion pounds.
Speaker 7 (18:57):
Now if you compare that with Lloyd's Banking Group.
Speaker 11 (18:59):
By the time and that was bailed out, and by
the time it became fully private in twenty seventeen, the
Treasury had actually gained eight hundred and ninety four million pounds.
Speaker 7 (19:08):
So obviously there's a lot more money.
Speaker 11 (19:11):
A lot of money is being lost on that West.
The government would tell you it's not really the right
way of looking at it, and that without the rescue,
the UK's financial system might have collapsed.
Speaker 2 (19:22):
Yeah, okay, so then what for what about the future
of the bank. Then they've been on a bit of
an acquisition spree recently. What's the shape of NatWest, which
actually is last year UK focused bank, isn't it?
Speaker 7 (19:37):
It's very UK focused? Yeah?
Speaker 11 (19:39):
So last year they acquired the majority of banking assets
from the retailer Sainsbury's and they also around the same
time they picked up a mortgage portfolio from Metro Bank
in a two point five billion pounds deal, and more
recently it was reported that they'd shown interest in Sandander's
UK Banking tail banking business, though they were ultimately rebuffed
(20:03):
on that affront. So they are yet, like you say,
they are showing a renewed interest in acquisitions. Paul Thwaite,
who's the CEO today, said at the annual general meeting
earlier this year that if they have the ability to
add scale and add capability, they'll have a look at it.
But he was keen to stress, as he always does,
that any deals aren't likely to transform thatwere sob all
(20:26):
direction and that the firm will remain disciplined, which is
essentially it was undisciplined acquisitions that brought it to the
verge of disaster back in two thousand and eight.
Speaker 1 (20:39):
This is Bloomberg Daybreak Europe. You're a morning brief on
the stories making news from London to Wall Streets and beyond.
Speaker 2 (20:45):
Look for us on your podcast feed every morning on Apple,
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Speaker 1 (20:51):
You can also listen live each morning on London Dab Radio,
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Speaker 2 (20:57):
Com Our flagship New York station is also available on
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Speaker 1 (21:05):
I'm Caroline Hepka and I'm Stephen Carol. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg daybreakur podcast, available every morning on Apple,
Spotify or wherever you listen. It's Tuesday, the twenty seventh
of May. Here in London. I'm Caroline Hepka coming up today.
A horrific incident, the words of Prime Minister Kiss Starmer,
after a car drives into crowds at Liverpool's Premier League
trophy parade. The US and EU agree to fast track
(00:32):
trade negotiations as President Trump pauses fifty percent tariffs on
the block. And seventeen years after the bailout, nat West
is preparing for life after government ownership with an Ion
acquisitions and wealth management. Let's start with a roundup of
our top stories. Twenty Seven people, including four children, have
(00:52):
been injured after a car drove into crowds of people
during Liverpool's Premier League victory parade. A fifty three year
old British man has been arrested. Merseyside Police Assistant Chief
Constable Jenny Simms says that they are not looking for
anyone else.
Speaker 3 (01:09):
I know that people will understandably be concerned by what
has happened tonight. What I can tell you is that
we believe this to be an isolated incident. The incident
is not being treated as terrorism.
Speaker 2 (01:24):
Merseyside Police, speaking there as the local FI service reported
that four people, including a child, were lifted from beneath
the car. In a statement, Prime Minister Keir Starmer said
Liverpool stands together and the whole country stands with Liverpool.
Liverpool Football Club says its thoughts and prayers are with
those injured.
Speaker 4 (01:44):
So that our top story this morning.
Speaker 2 (01:46):
Now, let's think about the European Union, which says that
it has agreed to accelerate negotiations with the US to
avoid a transatlantic trade war. The move to fast track
trade tours comes after a phone call between the EU
Commissioned President Slavonteline and the US President Donald Trump. Following
the call, President Trump also extended the deadline to impose
fifty percent tariffs on the EU to the ninth of
(02:09):
July to allow more time for negotiations. While the EU
has said that its priority is to find a negotiated
solution with the US, it has also been preparing to
retaliate with its own levees if needed. European Central Bank
President Christine Leaguard says that the White House's erratic policies
are an opportunity for the Euro. In a speech, the
(02:32):
Guard suggested that America could be undermining the dollar's role
as the world's reserve currency. She says that this could
be the moment the Euro goes global.
Speaker 5 (02:42):
Moments of change can also be moments of opportunity. The
ongoing changes create the opening for a global euro moment,
and this is a prime opportunity for Europe to take
greater control of its own destiny. But let's not follow ourselves.
It is not the privilege that will be bestowed upon us.
Speaker 2 (03:05):
The ECB president called for a closer single market and
more joint EU financing to make the block more financially attractive. Currently,
the dollar makes up roughly sixty percent of sovereign currency
reserves around the world, compared to the euro at twenty percent.
Dutch pension fund PME is issuing a blanket warning to
the US financial sector about caving in to pressure from
(03:28):
the Trump administration to abandon basic principles. The fund, with
sixty five billion dollars worth of assets under management, says
that if firms stay silent on Trump's policies, they could
lose the right to manage its money. Bloomberg's James Orcock
has the story.
Speaker 6 (03:45):
PME says there is a fundamental divide between European values
and the Trump administration. The Dutch Fund is considering changing
its ESG metrics to exclude money managers who don't stand
up for environment and diversity goals. Put their five billion
dollar mandate with black Rock under a view after the
asset manager quit a net zero coalition. More worryingly for Americans,
(04:08):
PME and not alone state streets have already lost mandates
in Scandinavia and the UK, and ali Anders, warning the
US may no longer offer a reliable investment runway In London.
Speaker 7 (04:19):
James Wilcock Bloomberg Radio.
Speaker 2 (04:21):
NATO Secretary General says that member states are moving towards
spending five percent of their GDP on defense. Speaking doing
a televised question and answer session, Mark Rutter confirmed the target,
which meets a demand by US President Donald Trump that
was originally deemed unrealistic.
Speaker 8 (04:40):
I assume that indyak we will agree on a higher
defense spend target of in total five percent. Sorry I
would not mention that, but at least I did it now.
But let's say that it's five percent, but I will
not say what is the NFL or breakup, but it
will be considerably norse for three percent when it comes
to the heart spent, and it will be also a
(05:02):
target on defensely later spending. We need this because all
of us we can never ever ever reach the capability
targets we have to.
Speaker 2 (05:10):
Reach NATO sexually. General Marco Rutter's comments his first public
endorsement of the figure as a target for the Defense Alliance.
It comes as German Chancellor Fredrik Mertz said that Ukraine
has been given permission to use weapons from its allies
to launch strikes inside Russia with no range limits. Now
(05:32):
to the UK, there are plans to train one hundred
and twenty thousand British builders, engineers and care workers as
the country tries to curb migration without worsening the skills shortage.
The government plans to use three billion pounds plus higher
taxes on foreign workers to fund new apprenticeships in key sectors.
(05:54):
The drive highlights a problem for Labor, who wants to
oversee both of boom in building whilst also cutting down
on migration, so a central issue for the ruling Labor party.
And lastly, to King Charles. He has arrived in Canada
on his first visit to the country as it's head
of state. He's in Ottawa to open a new parliament.
(06:16):
At the invitation of Prime Minister Mark Carney. He will
read the Throne Speech setting out his government's agenda in Canada.
Bloomberg reports it's partly a move designed to send US
President Donald Trump a message about Canada's sovereignty after he
said that he wants it to become America's fifty first state.
Prime Minister Mark Carney says that that won't happen and
(06:38):
he is pleased to welcome the King to Canada. I
asked the King when I visited the United Kingdom in March,
within days of my becoming Prime Minister the first time.
His Majesty was very receptive and we're honored by his visitors.
Prime Minister Mark Carney speaking there as the Monarch prepares
to read the speech to Parliament for the first time.
Sin's nineteen seventy seven, an honor that is normally reserved
(07:01):
for the Governor General in Canada. So those are a
few of our top stories for you this morning. Let's
have a look at the markets. So European stocks jumped
yesterday because of the delay in US tariffs. They were
up one percent of the close Automotive and industrial goods
were amongst the leading gains. Futures, though, for European stocks
(07:21):
are down almost two tenths of one percent this hour.
S and P five hundred EMNI futures are soaring up
by nine tenths of one percent. The green back this
morning down for a third day on the Bloomberg Dollar
Spot Index, and we're down something like more than seven
percent for the dollar this year, So that's a major
topic we'll be thinking about today. Tenny US treasury yields
(07:41):
dropping three basis points at four to forty eight, Japan's
long end yields declining sharply after hitting a record last week.
There's an important debt auction on Wednesday for forty year
notes that's going to be closely watched. And then don't
forget today the start of a big run of US
data out, including US durable goods and consumer confidence data.
Speaker 4 (08:01):
Today.
Speaker 2 (08:02):
Right, those are the markets, and now in a moment,
we are going to be a big you. More details
on the jubilation that turned into devastation in Liverpool over
the weekend, and also this warning to US asset managers
about what it means if they follow Trump administration policies
(08:23):
perhaps too closely, ones which clash maybe with European values.
So we'll get into that in just a moment. But
there was another story that cornhile. I don't know whether
you've managed to see it yet. This is Tom Cruise
and of course his Mission Impossible movie that was a
huge hit over the weekend. There's a great piece by
(08:44):
Tony Cabatchio over the weekend. Tom Cruise really did get
a US aircraft carrier for the mission. Yeah, it's completely bonkers.
The US Navy and Air Force Special Operations they decided
to accept the mission and to help Cruise's secret agent
Ethan Huh and save the world, or at least to
make a bit of the movie about it. This is
(09:04):
the story on the blue Egg Turtle that has kind
of fascinated all of us the Final Reckoning. Of course,
Paramount reported a blowout budget for this movie four hundred
million dollars. Got a break though, because the carrier and
crew were already on schedule training missions, so they managed
to sort of get that assistance. Most if not all,
(09:27):
of the aircraft time was logged as official training requirements
and therefore not reimbursable, according to the Pentagon. Sadly, I've
not seen this movie yet, but I bet a lot
of you already have. It had a massive weekend, didn't it.
So one of the stories that I've been reading about
this morning, and the helping hand for one of America's
biggest stars. Now, let's turn back to our top story
(09:51):
this morning, a car plowed into crowds of Liverpool fans
who were celebrating their team winning the Premier League, leaving
almost fifty people injured. Join me now bergs a Tia
at a bio. Good morning, Tia. This was really awful,
wasn't it. It was such a celebratory weekend, a bank
holiday weekend, and the open top buses and crowds were
(10:12):
out to celebrate this victory, and then it just turned
into devastation.
Speaker 4 (10:16):
What do we know about what happened?
Speaker 9 (10:19):
Yeah, Caroline, as you say, it was supposed to be
a day's celebration for the club and also for the city.
Hundreds of thousands of people had come out to celebrate the.
Speaker 4 (10:28):
Team's Premier League victory.
Speaker 9 (10:29):
It was a victory which had made them arguably the
most successful club in England, so there was this real
sense of jubilation, but that quickly did turn to terror
after the incident that happened on Water Street, which is
in Liverpool's city center, just after six pm on parade day.
Just moments before the incident occurred on Water Street, the
(10:51):
Liverpool FC bus and team had actually just paraded their
Premier League trophy from the top of an open top
bus as you meant, and just to give you a
bit of context, Water Street is just about a mile
before the end of the parade's designated route, so according
to Merseyside Police, a car collided with a number of
(11:13):
pedestrians who were celebrating the victory. The Ambulance Service says
that twenty seven people were taken to hospital in the aftermath,
with two including one child, seriously injured, and a further
twenty people were treated for injuries at the scene and
four people including a child, were lifted from beneath the car.
That's according to Merseyside's Fire chief. So really tragic scenes
(11:36):
happening on what was supposed to be a day of
celebration for the city of Liverpool.
Speaker 2 (11:40):
Yeah, absolutely, it had been a day of celebration and
that the incident took place around six o'clock in the
evening and arrest made.
Speaker 4 (11:48):
What have police said so?
Speaker 9 (11:50):
The Merseyside Police held a press conference yesterday evening and
they also released a statement telling us that a fifty
three year old white British Man has been arrested and
the police do believe him to be the driver of
the vehicle. There are also inquiries into the exact circumstances
leading up to the collision that are underway and specialist
(12:10):
officers have been put in place to support the injured
and their families. The police did also clarify that the
incident is not currently being treated as terrorism and that's
all we have from the police at this time is
they continue their investigations.
Speaker 2 (12:26):
But the response on the club from the Premier League,
from the Prime Minister, a lot of people have made
some comments already.
Speaker 7 (12:33):
Yeah, we have.
Speaker 9 (12:34):
Heard responses from a number of people so far. We've
heard from both the Prime Minister and the leader of
the opposition. So Kis Starma shared his thanks to the
police and the emergency services on x and he said
his thoughts were with those affected and similarly, the Conservative
leader Kemmy Beisenok also shared a similar sentiment on the platform.
(12:57):
Liverpool Football Club is understood to have boned the celebrations
for its own staff due to the incident. We often
forget this is not just the end of a successful
season for Liverpool, but it's the end of a football
season and all clubs really do tend to celebrate that
point in times, the end of a lot of hard
work for the staff. But those celebrations on hold for
(13:17):
the moment. They have confirmed that they're in touch with
the police as investigations continue.
Speaker 4 (13:22):
They said they.
Speaker 9 (13:23):
Will offer their full support and cooperation. They've also shared
thoughts for the victims in a statement, and also their
rivals Everton FC, who neighbor the club, have expressed their support.
They're putting on a united front in the face of
this incident.
Speaker 4 (13:38):
Ok Ti, but thank you so much for being with me.
Speaker 2 (13:41):
Yeah, we are really hoping for the swift recovery of
anybody hurt in that incident. Bluebag's h at at Abio,
thank you for your reporting. Now a US asset managers
are coming under increasing scrutiny and losing mandates with European
pension funds. Amid concerns that America's investment industry is caving
into pressure from the Trump administration on basic principles, including
(14:04):
climate change and on diversity, equity and inclusion. Joining me
now as Bloomberg Senior Editor for US Economics and Government,
Derek Wallbank, Derek, good morning. So there is this Dutch
pension fund huge assets under management PME, which has issued
a warning to US money managers. What are they saying exactly.
Speaker 7 (14:24):
Well, thank you so much and good morning. Look.
Speaker 10 (14:26):
PME is basically saying, quite simply that US funds are
not condemning what Trump is doing, how he's operating, how
he's handling issues including climate change, the judiciary, diversity inclusion,
other things of that nature. It's really a continuation of
a split that we're seeing between Europe and the United
(14:47):
States and a number of different areas.
Speaker 7 (14:50):
Now.
Speaker 10 (14:50):
European funds have the ability to choose who they want
to manage things, you know, and to be involved in.
Speaker 7 (14:59):
What the are doing.
Speaker 10 (15:01):
To put real quite simply, they're taking a moment at
this point, many of them. PM is by far not
alone to say, hang on a second, let's just see
sort of where we are, and if you are aligned
with what we're looking at doing now. I should say
here ESG sort of goes into three buckets.
Speaker 7 (15:20):
Right.
Speaker 10 (15:20):
There's offense you're trying to you're trying to gain alpha
and a differential in returns.
Speaker 7 (15:26):
There's also like defense.
Speaker 10 (15:29):
Of trying to stop having a potential regulatory issue, and
we do see some of these issues cropping up in
regulation as well. And then there's also values, right, and
this is where we're seeing the European funds speaking out.
Speaker 2 (15:44):
Yeah, on State Street has already lost some European pension
money because of this. It looks like US management managers
are basically court, aren't they between the Trump administration and
their goals and the Republican Party maybe more Republican leaning
state And then Europe and European standards.
Speaker 10 (16:03):
Yeah, well, and I mentioned the defense and regulation for
precisely this point, right, because Europe in a lot of ways,
and certainly I'm sitting in Singapore right now, and European
regulations are really a global standard. A lot of firms
have to use the European standards because they tend to
be the toughest. So if you work to the European standard,
you're sort of good throughout the way. The thing is
(16:24):
though in the United States there has been a backlash
too that certainly with some states. Texas is the big
one that have said, and hang on a second, we
don't like the way that you're doing this. We want
it done a different way, and often in polar opposition.
So it is sort of taking these firms, many of
which candidly would prefer to focus.
Speaker 7 (16:44):
On making money, and putting.
Speaker 10 (16:47):
Them a bit between a rock and a hard place
regulatory wise, between Europe and some of these conservative areas.
Speaker 4 (16:55):
Yeah.
Speaker 2 (16:55):
Absolutely, and pme that Dutch pension fund manager says that
it's reviewing and is going to make a decision sort
of shortly and maybe in the next few weeks. Derek,
thank you so much for being with me. We'll be
continuing to track this story, of course, as you say globally. Bloomberg,
Senior editor for US Economics and Government, Derek Wallbank. Now
Here in the UK, the government's expected to confirm that
(17:18):
it has fully divested its holdings in Nowwest, meaning that
the bank will chart its own course nearly twenty years
since it was bailed out in the two thousand and
eight financial crisis. Plyempic's finance reporter will Shaw has been
reporting on this. The government finally stepping back will it
has been a pretty long road though, hasn't it.
Speaker 7 (17:38):
It has.
Speaker 11 (17:39):
So this all goes back seventeen years to the financial
crisis and the collapse of what was then known as
the Royal Bank of Scotland. At the time, the bank
had a two point two trillion pound balance sheet and
around the world it employed nearly two hundred thousand staff.
And the newest that we know today is very different firm.
The balance sheet is just seven hundred and eight billion
(17:59):
pounds and the headcount is less than a third of
what it was at that time, and.
Speaker 7 (18:04):
The intervening period saw huge restructuring.
Speaker 11 (18:07):
In the first five years alone, the bank cut more
than thirty nine thousand jobs and quit over twenty countries,
and it would go on to pivot away for investment banking,
which had got it into the scrape it found itself,
and to focus on domestic commercial and retail banking instead.
Speaker 2 (18:24):
The thing is the sale of the government stake in
that west has not been without controversy. What has the
bailout actually cost UK taxpayers?
Speaker 11 (18:34):
So basically, after the crisis, Westminster made a series of
emergency cash injections that brought the its stake up to
a controlling eighty four percent, and that left UK taxpayers
shouldering a bill of nearly forty six billion pounds. Now
after the final sale, we calculate that the government will
(18:54):
be out of pocket by about ten billion pounds.
Speaker 7 (18:57):
Now if you compare that with Lloyd's Banking Group.
Speaker 11 (18:59):
By the time and that was bailed out, and by
the time it became fully private in twenty seventeen, the
Treasury had actually gained eight hundred and ninety four million pounds.
Speaker 7 (19:08):
So obviously there's a lot more money.
Speaker 11 (19:11):
A lot of money is being lost on that West.
The government would tell you it's not really the right
way of looking at it, and that without the rescue,
the UK's financial system might have collapsed.
Speaker 2 (19:22):
Yeah, okay, so then what for what about the future
of the bank. Then they've been on a bit of
an acquisition spree recently. What's the shape of NatWest, which
actually is last year UK focused bank, isn't it?
Speaker 7 (19:37):
It's very UK focused? Yeah?
Speaker 11 (19:39):
So last year they acquired the majority of banking assets
from the retailer Sainsbury's and they also around the same
time they picked up a mortgage portfolio from Metro Bank
in a two point five billion pounds deal, and more
recently it was reported that they'd shown interest in Sandander's
UK Banking tail banking business, though they were ultimately rebuffed
(20:03):
on that affront. So they are yet, like you say,
they are showing a renewed interest in acquisitions. Paul Thwaite,
who's the CEO today, said at the annual general meeting
earlier this year that if they have the ability to
add scale and add capability, they'll have a look at it.
But he was keen to stress, as he always does,
that any deals aren't likely to transform thatwere sob all
(20:26):
direction and that the firm will remain disciplined, which is
essentially it was undisciplined acquisitions that brought it to the
verge of disaster back in two thousand and eight.
Speaker 1 (20:39):
This is Bloomberg Daybreak Europe. You're a morning brief on
the stories making news from London to Wall Streets and beyond.
Speaker 2 (20:45):
Look for us on your podcast feed every morning on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 1 (20:51):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app and Bloomberg Dot.
Speaker 2 (20:57):
Com Our flagship New York station is also available on
your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
Speaker 1 (21:05):
I'm Caroline Hepka and I'm Stephen Carol. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak Europe
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