April 24, 2025 • 17 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Confronted with fresh warnings from financial markets, business leaders and top advisers, President Donald Trump this week eased off on two of his frequent punching bags: Jerome Powell and China.He turned down his aggressive rhetoric a day after meeting with executives from Walmart Inc., Home Depot Inc. and Target Corp., who said import taxes could disrupt supply chains and raise the prices of goods, according to people familiar with the matter
(2) Citadel founder Ken Griffin said President Donald Trump’s trade war has derailed business leaders’ plans to spend the next four years focusing on growth.
Griffin had previously criticized Trump’s tariffs even though he said he agrees with the president’s assessment of the issues that the US faces.
(3) President Trump has mused that he could announce tariff rates for countries, including China, “over the next two to three weeks.” At the same time, Trump said the deadline would ultimately depend on whether China engaged.
(4) The UK isn’t in a hurry to strike a deal with the US that lowers the tariffs President Donald Trump’s administration has slapped on British imports, Chancellor of the Exchequer Rachel Reeves said, highlighting that Britian is prepared to stand by red lines on safety standards.
(5) BNP Paribas SA reported record income from equities trading as the French lender rode the global market volatility in the first quarter of this year. The French lender on Thursday reported a 42% surge in equities trading revenue to €1.19 billion ($1.35 billion) in the three months through March, beating even the most optimistic analyst estimate. It was also the highest in data compiled by Bloomberg and going back to 2007.
(6) Companies moving office in London last year leased more expansion space than they have done since 2019, just the year before the coronavirus pandemic upended white-collar working practices and sent shock waves through commercial real estate markets.
(7) Podcast conversation: Gyms Might Never Be the Same
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the.
Speaker 3 (00:10):
Bloomberg Day by Q podcast, available every morning on Apple,
Spotify or wherever you listen. It's Thursday, the twenty fourth
of April in London. I'm Caroline Hepka and.
Speaker 4 (00:19):
I'm Stephen Carroll.
Speaker 1 (00:20):
Coming up today, Hedge fund titan Ken Griffin says Donald
Trump's trade war has devolved into a nonsensical place as
the President raises the prospect of lower China tariffs in
the coming weeks.
Speaker 3 (00:32):
The UK's Chancellor Rachel Reeves says there's no rush to
strike a deal with the US to lower levies on Britain.
Speaker 4 (00:39):
Plus a major bump in the road.
Speaker 1 (00:41):
But in our Jim Ratcliffe's faray into the car business
faces its latest challenge to profitability in the form of
US auto tariffs.
Speaker 3 (00:49):
Let's start with a roundup of our top stories.
Speaker 1 (00:51):
Bloomberg understands that President Trump's decision to ease off criticism
of Federal Reserve charg Jerown Powell and China came after
a meet with executives from Walmart Home Depot and Target,
who warns that store shelves could be empty within weeks. Meanwhile,
Citadel founder Ken Griffin said the trade war had disrupted
business leader's ability to focus on long term growth. Speaking
(01:15):
at the Semaphore World Economy Summers, the Republican megadoner warned
that things are moving to haphazardly all of us.
Speaker 5 (01:22):
We're really looking forward to four years of having a
chance to really grow our businesses, and unfortunately the trade war,
which has devolved into a nonsensical place, means that we're
spending time now thinking about supply chains, thinking about strategically
how we're going to source goods around the world. And
I'll tell you what's not going to happen this. People
(01:44):
are not going to race to build manufactured in America.
Speaker 1 (01:48):
Griffith's comments came as market participants tell Bloomberg that it's
becoming increasingly difficult to predict the direction of stocks, bonds,
or the dollar. As Jay Woods, chief global strategistic Freedom
Cap Markets put it, every day is just uncertainty, uncertainty, uncertainty.
We expect one thing to happen, and then something entirely
(02:08):
different does.
Speaker 3 (02:10):
President Trump has raised the prospect of a new tariff
right for China coming in the next two to three weeks,
but that it depends on Beijing. The Wall Street Journal
reported on Wednesday that administration officials are weighing plans to
cut tariffs on Chinese imports now. Under the proposal, they say,
tariffs could be reduced to a range of fifty to
sixty five percent, or, through a tiered system, thirty five
(02:33):
percent on items deemed non critical to national security, but
then up to one hundred percent on sensitive goods that
would be gradually phased in over five years. The White
House has yet to formally begin tariff talks, though with Beijing.
President Trump told reporters that everything's active.
Speaker 6 (02:53):
We're going to have a great deals. And by the way,
if we don't have a deal with the company or
a country, we're going to set the tariff. Just set
the terror for something that we think that will happen.
I say over the next couple of weeks. When you say,
I think so, over the next two to three weeks,
we'll be setting the number. And we're going to pick
could be for China too.
Speaker 3 (03:12):
President Trump is known for shifting positions, and a White
House official noted that the reported proposal may have been
floated as a trial balloon to draw China back to
the negotiating table, but any changes would require progress in negotiations.
Treasury Sectuary Scott Bessent echoed that caution on Wednesdays, saying
that the US is not likely to unilaterally lower tariffs
(03:36):
and then a comprehensive trade deal could take two to
three years.
Speaker 1 (03:41):
Next to Britain's Chancellor Rachel Reeves, who says the UK
isn't in a rush to do a trade deal with America,
Bloomberg was told the uncertainty over the how Trump's tariffs
might play out means London feels less time pressure to
strike a deal. Speaking to reporters, Reeves says safety standards
won't be compromised.
Speaker 4 (04:02):
We're confident that we can secure an agreement with the
United States. We're not going to rush a deal.
Speaker 7 (04:07):
We want to get the right deal in our country's
national interest.
Speaker 1 (04:13):
UK's Chancellor's tight fiscal plans are again in question as
the trade war hits economic growth around the world. She's
due to meet Treasury Secretary Scott Bassen tomorrow to discuss
tariff negotiations.
Speaker 3 (04:25):
To Breaking Earnings News This Hour, BMP Pariber has reported
record income from equities trading as the French lender rode
the global market volatility that's been seen. In the first
quarter of this year, the French lender reported a forty
two percent surge in equities trading revenue to one point
one nine billion euros, beating even the most optimistic Alyss estimate.
(04:48):
It was also the highest in day to compile by
Bloomberg and going back to two thousand and seven. However,
BNP Pariber's costs rose four percent on the previous years period,
which contributed to a deca fine in net income. According
to BNP's statement this morning.
Speaker 1 (05:05):
Donald Trump is ramping up pressure on Ukraine's President Vladimir
Zelenski to accept a peace deal with Russia. Last week,
US officials presented a new proposal to end the war
that would effectively freeze the conflict largely along existing battle lines.
The US is also willing to acknowledge Russia's occupation of
Crimea and ease sanctions on Moscow. Speaking from the Oval
(05:26):
Office yesterday, Trump said an agreement now hinges on Ukraine's acceptance.
Speaker 6 (05:32):
I will say that I think Russia is ready, and
a lot of people said Russia wanted to go for
the whole thing, and they've I think we have a
deal with Russia. We have to get a deal with Zelensky,
and I hope that Selensky I thought it might be
easier to deal with Zelensky. So far it's been harder.
Speaker 1 (05:51):
President Trump speaking there hours after criticizing Zelensky on social
media for saying this week that his country wouldn't recognize
Russian's sovereignty over Crimea, accusing him of prolonging fighting. Meanwhile,
critics of the proposed deal feel the terms where fear
of the terms will favor Moscow and sacrifice European security.
(06:11):
Early this morning, the Ukrainian cities of Kiev and Kharkiv
faced drone and missile attacks injuring at least five people,
according to a telegram post by the City Military Administration
in Kiev.
Speaker 3 (06:23):
Now to the City of London, firms are seeking bigger
office spaces for the first time since the pandemic. It's
a move that signals changing attitudes towards physical footprints for
many businesses. Bloomberg's Tiba at a Baio has more.
Speaker 2 (06:38):
In the wake of the coronavirus outbreak, business leaders envisioned
a future of shrinking office real estate and homeworking dominance.
Whilst that prophecy did initially come true. Recent figures show
the tide is turning back towards in office presence for
a number of London firms across the capital. Seventy percent
(06:58):
of the established businesses that moved office in twenty twenty
four took additional space, totaling about four point one million
square feet of expansion. That's according to data from broker
Cushman and Wakefield. Now, industry heavy hitters including JP Morgan
and Jane Street are in talks to boost their physical
(07:18):
presence in the city, with a focus on central, well
connected locations in London. Te Wadabayo, Bloomberg Radio.
Speaker 1 (07:26):
Those are your top stories on the markets. The equity
market rally was losing steam late yesterday, but the S
and P five hundred still finished by one point seven
percent higher. We saw the dollary band from year to
date lows rising near one percent in the past three sessions.
Trading just slightly weaker overnight inequity Asian trading Today in Asia,
(07:47):
we're looking at the MSCIS Specific Index three tenths lower.
The Hangsang and Hong Kong is down by one point
one percent. Treasury yields continuing to decline. The tenure yield
down another two basis points this morning to four point
three six percent. European stock flash for eurostrucks fifty at
the moment, but when the currency markets were also watching
the yen strength and four tenths of one percent against
(08:07):
the dollar trading just shy of one forty three, the
euros up two tenths at one thirteen thirty six.
Speaker 3 (08:12):
Now in a moment, we will have all the latest
tariff news for you this morning, plus why Trump's levees
are spelling trouble for British billionaire Jim Ratcliff's car business.
But before we get to those conversations, another swis caught
our eye, joggings out and apparently moving and lifting heavy
objects is in.
Speaker 1 (08:31):
As if being on social media slash existing in the
world wasn't hard enough. Apparently the things that I like
are now no longer popular and I have to I
have to take up blue things now.
Speaker 4 (08:41):
I don't want to do any new things.
Speaker 1 (08:42):
Caroline and fed up with this, but anyway, look at
Bloombero's red Riders and writing about how gym businesses are
adopting the US was uptake a interest or increased interest
in weightlifting, So they're actually getting rid of quite a
lot of their cardio machines. Crunch Fitness one of the
big chains in the US, so that they're actually in
most places reducing around four twenty percent of the machines
that have available for cardiopo because people aren't using them
(09:03):
and they're replacing them with weights.
Speaker 3 (09:05):
And that is both a kind of TikTok social media trend.
It's it's also one that you've kind of seen with celebrities,
and it's partly also the health advice that's being given
sort of to older people and especially to women as
people age, is to kind of bulk up, get you know,
keep hold of your muscles. Anyway, it's a really great
piece from a red band who goes into lots of
(09:26):
details about why, you know, weightlifting is now the thing
in the gym.
Speaker 4 (09:30):
Well, that's scat you.
Speaker 1 (09:31):
The latest on the tariff story now, Donald Trump now
says China might get a lower rate within weeks, while
US officials are said to be considering reducing the levies
on the car industry as well. Our AMA News director
Rasland Matheson is with us for more this morning.
Speaker 4 (09:45):
Rose, Let's start with China.
Speaker 1 (09:47):
Both Trump and the Treasury secretaries got best and have
indicated there's room for negotiation. Can we say this really
is a de escalation, Well, at least the language is
a de escalation.
Speaker 8 (09:57):
The question is what does it actually lead too, because
there's a lot of on the one hand, On the
other commentary coming from US officials, Donald Trump saying that
he thinks he can get a good deal with China.
They're talking with officials unnamed officials in China every single day,
and that he's confident of that. But also we're getting
(10:18):
these reports that he may reduce tariffs on China preemptively
even before there's a negotiation, and then other officials saying,
hang about no, who's not going to do anything like that.
I mean, the messaging overall seems to be they're open
to a conversation. They're indicating that they realize that perhaps
it's escalating to a point that the US doesn't want
(10:40):
it to get to. But the reality is that getting
these tariffs lowered and off is easier said than done.
And equally, he will need China to make some kind
of step towards the US. He can't just lift tariffs
on China or reduce them without something in return.
Speaker 4 (10:58):
So at least the language is softening.
Speaker 8 (11:00):
We're a bit of a way potentially before we get
to tangibles on it.
Speaker 3 (11:03):
And yet there are quite a number of sectors within
the US, executives, individual states, various companies who want who
are putting pressure on on Donald Trump over tariffs. Does
relief on the auto sector look perhaps the most likely
to happen?
Speaker 8 (11:20):
Now, Well, there's been a lot of lobbying from the
auto sector, parade of CEOs, executives, lobbies through Washington saying
this is going to be very damaging for our own
auto industry. In fact, it could lead to layoffs and
some one It's really interesting because of course Donald Trump's
going to Michigan next week, that's where he's going to
(11:41):
mark his one hundred days in office. That's the bedrock
of you know, the US auto industry. So certainly he
doesn't want to be heckled there by people saying that
he's risking jobs in the US. But what we do now,
of course, from our own reporting, is they are looking
at perhaps some easing, they're you know, avoiding the stacking
of tar tariffs for the auto sector, see not putting
(12:02):
tariffs on top of each other. Perhaps again some exemptions
if for the US Mexico Canada hit trade deal, because
of course a lot of the autoparts come through the
Americas as a whole into the US, so there might
be some selective relief that can come. There no promises
from the White House as yet, but we do know
(12:22):
from our own reporting that's being at least discussed.
Speaker 1 (12:25):
This is we've got the parade of financial officials moving
through Washington for the IMF and World Bank Spring meetings.
At the moment of Rachel Reeves saying that she's in
no rush to do a trade deal.
Speaker 8 (12:34):
What's interesting because you have a lot of countries saying
they're rushing to talk, but at the same time, the
narrative is that they would prefer to do a good
deal rather than a quick deal, and then a bad deal,
of course, becomes very very difficult to unwind. So if
you race to get something done, getting it unpicked later
on is very very difficult. And so even with countries
like Japan, India, others who are really at the frontline
(12:57):
of having these negotiations with US officials, you get a
message there also that they would prefer a better deal
over a quick deal, and some suggestion from the White
House even that getting a proper trade deal with the
country like China could take years, so certainly we're getting
that kind of like hurry up, but also weight messaging
coming from a bunch of countries, including the UK.
Speaker 3 (13:20):
Wels thank you so much for being with us this morning,
taking us through all the latest tariff twists. Our EMEA
News director Rosly.
Speaker 1 (13:26):
Matheson Well, the British spilding now Jim Rathcliffe is among
those fitting the pinch from Donald Trump's levies on the
auto sector. His Ineos automotive business, which had already been
facing difficulties from recalls and bankrupt suppliers, now looks even
further from turning a profit. Our UK Business editor Jamie
Nemo joins us now for more on this. Jamie, good morning.
In the automotive's main product is the Grenadier suv. Talk
(13:49):
us through what the state of the business was before
the tariffs.
Speaker 7 (13:53):
Yeah, well, they were really in startup mode and they
still are. I mean it's it's like a nine year
old business. So in startup world, that's you know, quite developments,
but in the car business, that's a long way from
really producing large sums, large volumes of cars. So yes,
they just started selling cars in twenty twenty three, really
(14:15):
trying to ramp up now. So this is a real
blow to their plans to sort of boost sales in
the US, which is its largest market.
Speaker 3 (14:22):
Ah okay, so what's changed since the auto tariffs were imposed?
Speaker 7 (14:26):
So they've raised the prices on a couple of their models.
They've got to pick Up that they've had to raise
by ten percent, and the standard Grenadier is five percent higher.
They hope that, you know, customers will keep coming to
buy the car. The problem for the pickup version is
that it already attracts the twenty five percent chicken TACs,
which has been in place for decades. So you've now
got this double tariff hit. So they're really going to
(14:48):
have to take that blow, and there's there's really not
that much they can do about it.
Speaker 1 (14:52):
What's the kind of comparison with ANYAS versus other car makers,
because of course they're all affected by the tariffs, and
AS is particularly feeling the pain.
Speaker 4 (15:01):
Yeah.
Speaker 7 (15:02):
Well, if you think about VW, for instance, it's you know,
giant company. We talk about the strain it's under, but
in reality it's still churning out huge profits and then
take Ineos. You're a startup, You're really not. You're losing
tons of money at the moment, and it's just going
to get worse. I mean, they were hoping to turn
a profit in the next few years, not exactly sure
when they haven't stated that, but we know now the
(15:24):
CEO told us that this will delay that and it
will take a lot longer. And then you've got the dilemma.
Does he keep putting money and he's having to fund
this it's not his main business. Chemicals is the main thing,
and he's got a lot of you know, a lot
of sport now as well. Man United is the big
high profile investment, so you know he'll really have to
commit or pull the plug.
Speaker 3 (15:44):
Yeah, I'm sort of going to say geomatically, he's such
a well known figure. He's quite controversial. He you know,
he does speak from time to time. So he's he's
perhaps quite well known in the UK obviously for his
wealth and the chemicals business success. What does it mean
for him then, because he's trying to repeat that success
in other sorts of businesses.
Speaker 7 (16:03):
Yeah, he's really trying to prove himself in under other
industries and it's not quite paid off yet. Sport in particular,
He's come in at different times of sports, cycling, football,
Formula one and it's not quite worked out. So this
is another area where he's really trying to prove himself.
So he probably doesn't want to pull the plug. He
really wants to show that he can make this work,
makes a success of it.
Speaker 4 (16:25):
So yeah, that's that's his real thing.
Speaker 7 (16:26):
He wants to just you know, show that he can
he can work his magic in other sectors.
Speaker 1 (16:31):
Is there any cars for optimism from the company in
this as well? How are they thinking about I suppose
that the path away from their current difficulties.
Speaker 4 (16:38):
Yeah, I think so.
Speaker 7 (16:39):
They hope that as they get more mature, they can
you know, strengthen their supply chain. You know, they had
a situation last year where a seat supply went bust
and they had no alternatives than to shut down the factory.
I think they hope that as as it gets older,
they can they'll have they'll have fallbacks in different scenarios,
and also as they as customed, as the brand gets
you know better better in the US in particular, that
(17:02):
they won't have to completely sort of throw huge sums
at marketing to sell the vehicles and it would be
a bit more self sufficient.
Speaker 1 (17:12):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 3 (17:18):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (17:24):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 3 (17:30):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 4 (17:39):
I'm Stephen Carroll.
Speaker 1 (17:39):
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 (00:10):
This is the.
Speaker 3 (00:10):
Bloomberg Day by Q podcast, available every morning on Apple,
Spotify or wherever you listen. It's Thursday, the twenty fourth
of April in London. I'm Caroline Hepka and.
Speaker 4 (00:19):
I'm Stephen Carroll.
Speaker 1 (00:20):
Coming up today, Hedge fund titan Ken Griffin says Donald
Trump's trade war has devolved into a nonsensical place as
the President raises the prospect of lower China tariffs in
the coming weeks.
Speaker 3 (00:32):
The UK's Chancellor Rachel Reeves says there's no rush to
strike a deal with the US to lower levies on Britain.
Speaker 4 (00:39):
Plus a major bump in the road.
Speaker 1 (00:41):
But in our Jim Ratcliffe's faray into the car business
faces its latest challenge to profitability in the form of
US auto tariffs.
Speaker 3 (00:49):
Let's start with a roundup of our top stories.
Speaker 1 (00:51):
Bloomberg understands that President Trump's decision to ease off criticism
of Federal Reserve charg Jerown Powell and China came after
a meet with executives from Walmart Home Depot and Target,
who warns that store shelves could be empty within weeks. Meanwhile,
Citadel founder Ken Griffin said the trade war had disrupted
business leader's ability to focus on long term growth. Speaking
(01:15):
at the Semaphore World Economy Summers, the Republican megadoner warned
that things are moving to haphazardly all of us.
Speaker 5 (01:22):
We're really looking forward to four years of having a
chance to really grow our businesses, and unfortunately the trade war,
which has devolved into a nonsensical place, means that we're
spending time now thinking about supply chains, thinking about strategically
how we're going to source goods around the world. And
I'll tell you what's not going to happen this. People
(01:44):
are not going to race to build manufactured in America.
Speaker 1 (01:48):
Griffith's comments came as market participants tell Bloomberg that it's
becoming increasingly difficult to predict the direction of stocks, bonds,
or the dollar. As Jay Woods, chief global strategistic Freedom
Cap Markets put it, every day is just uncertainty, uncertainty, uncertainty.
We expect one thing to happen, and then something entirely
(02:08):
different does.
Speaker 3 (02:10):
President Trump has raised the prospect of a new tariff
right for China coming in the next two to three weeks,
but that it depends on Beijing. The Wall Street Journal
reported on Wednesday that administration officials are weighing plans to
cut tariffs on Chinese imports now. Under the proposal, they say,
tariffs could be reduced to a range of fifty to
sixty five percent, or, through a tiered system, thirty five
(02:33):
percent on items deemed non critical to national security, but
then up to one hundred percent on sensitive goods that
would be gradually phased in over five years. The White
House has yet to formally begin tariff talks, though with Beijing.
President Trump told reporters that everything's active.
Speaker 6 (02:53):
We're going to have a great deals. And by the way,
if we don't have a deal with the company or
a country, we're going to set the tariff. Just set
the terror for something that we think that will happen.
I say over the next couple of weeks. When you say,
I think so, over the next two to three weeks,
we'll be setting the number. And we're going to pick
could be for China too.
Speaker 3 (03:12):
President Trump is known for shifting positions, and a White
House official noted that the reported proposal may have been
floated as a trial balloon to draw China back to
the negotiating table, but any changes would require progress in negotiations.
Treasury Sectuary Scott Bessent echoed that caution on Wednesdays, saying
that the US is not likely to unilaterally lower tariffs
(03:36):
and then a comprehensive trade deal could take two to
three years.
Speaker 1 (03:41):
Next to Britain's Chancellor Rachel Reeves, who says the UK
isn't in a rush to do a trade deal with America,
Bloomberg was told the uncertainty over the how Trump's tariffs
might play out means London feels less time pressure to
strike a deal. Speaking to reporters, Reeves says safety standards
won't be compromised.
Speaker 4 (04:02):
We're confident that we can secure an agreement with the
United States. We're not going to rush a deal.
Speaker 7 (04:07):
We want to get the right deal in our country's
national interest.
Speaker 1 (04:13):
UK's Chancellor's tight fiscal plans are again in question as
the trade war hits economic growth around the world. She's
due to meet Treasury Secretary Scott Bassen tomorrow to discuss
tariff negotiations.
Speaker 3 (04:25):
To Breaking Earnings News This Hour, BMP Pariber has reported
record income from equities trading as the French lender rode
the global market volatility that's been seen. In the first
quarter of this year, the French lender reported a forty
two percent surge in equities trading revenue to one point
one nine billion euros, beating even the most optimistic Alyss estimate.
(04:48):
It was also the highest in day to compile by
Bloomberg and going back to two thousand and seven. However,
BNP Pariber's costs rose four percent on the previous years period,
which contributed to a deca fine in net income. According
to BNP's statement this morning.
Speaker 1 (05:05):
Donald Trump is ramping up pressure on Ukraine's President Vladimir
Zelenski to accept a peace deal with Russia. Last week,
US officials presented a new proposal to end the war
that would effectively freeze the conflict largely along existing battle lines.
The US is also willing to acknowledge Russia's occupation of
Crimea and ease sanctions on Moscow. Speaking from the Oval
(05:26):
Office yesterday, Trump said an agreement now hinges on Ukraine's acceptance.
Speaker 6 (05:32):
I will say that I think Russia is ready, and
a lot of people said Russia wanted to go for
the whole thing, and they've I think we have a
deal with Russia. We have to get a deal with Zelensky,
and I hope that Selensky I thought it might be
easier to deal with Zelensky. So far it's been harder.
Speaker 1 (05:51):
President Trump speaking there hours after criticizing Zelensky on social
media for saying this week that his country wouldn't recognize
Russian's sovereignty over Crimea, accusing him of prolonging fighting. Meanwhile,
critics of the proposed deal feel the terms where fear
of the terms will favor Moscow and sacrifice European security.
(06:11):
Early this morning, the Ukrainian cities of Kiev and Kharkiv
faced drone and missile attacks injuring at least five people,
according to a telegram post by the City Military Administration
in Kiev.
Speaker 3 (06:23):
Now to the City of London, firms are seeking bigger
office spaces for the first time since the pandemic. It's
a move that signals changing attitudes towards physical footprints for
many businesses. Bloomberg's Tiba at a Baio has more.
Speaker 2 (06:38):
In the wake of the coronavirus outbreak, business leaders envisioned
a future of shrinking office real estate and homeworking dominance.
Whilst that prophecy did initially come true. Recent figures show
the tide is turning back towards in office presence for
a number of London firms across the capital. Seventy percent
(06:58):
of the established businesses that moved office in twenty twenty
four took additional space, totaling about four point one million
square feet of expansion. That's according to data from broker
Cushman and Wakefield. Now, industry heavy hitters including JP Morgan
and Jane Street are in talks to boost their physical
(07:18):
presence in the city, with a focus on central, well
connected locations in London. Te Wadabayo, Bloomberg Radio.
Speaker 1 (07:26):
Those are your top stories on the markets. The equity
market rally was losing steam late yesterday, but the S
and P five hundred still finished by one point seven
percent higher. We saw the dollary band from year to
date lows rising near one percent in the past three sessions.
Trading just slightly weaker overnight inequity Asian trading Today in Asia,
(07:47):
we're looking at the MSCIS Specific Index three tenths lower.
The Hangsang and Hong Kong is down by one point
one percent. Treasury yields continuing to decline. The tenure yield
down another two basis points this morning to four point
three six percent. European stock flash for eurostrucks fifty at
the moment, but when the currency markets were also watching
the yen strength and four tenths of one percent against
(08:07):
the dollar trading just shy of one forty three, the
euros up two tenths at one thirteen thirty six.
Speaker 3 (08:12):
Now in a moment, we will have all the latest
tariff news for you this morning, plus why Trump's levees
are spelling trouble for British billionaire Jim Ratcliff's car business.
But before we get to those conversations, another swis caught
our eye, joggings out and apparently moving and lifting heavy
objects is in.
Speaker 1 (08:31):
As if being on social media slash existing in the
world wasn't hard enough. Apparently the things that I like
are now no longer popular and I have to I
have to take up blue things now.
Speaker 4 (08:41):
I don't want to do any new things.
Speaker 1 (08:42):
Caroline and fed up with this, but anyway, look at
Bloombero's red Riders and writing about how gym businesses are
adopting the US was uptake a interest or increased interest
in weightlifting, So they're actually getting rid of quite a
lot of their cardio machines. Crunch Fitness one of the
big chains in the US, so that they're actually in
most places reducing around four twenty percent of the machines
that have available for cardiopo because people aren't using them
(09:03):
and they're replacing them with weights.
Speaker 3 (09:05):
And that is both a kind of TikTok social media trend.
It's it's also one that you've kind of seen with celebrities,
and it's partly also the health advice that's being given
sort of to older people and especially to women as
people age, is to kind of bulk up, get you know,
keep hold of your muscles. Anyway, it's a really great
piece from a red band who goes into lots of
(09:26):
details about why, you know, weightlifting is now the thing
in the gym.
Speaker 4 (09:30):
Well, that's scat you.
Speaker 1 (09:31):
The latest on the tariff story now, Donald Trump now
says China might get a lower rate within weeks, while
US officials are said to be considering reducing the levies
on the car industry as well. Our AMA News director
Rasland Matheson is with us for more this morning.
Speaker 4 (09:45):
Rose, Let's start with China.
Speaker 1 (09:47):
Both Trump and the Treasury secretaries got best and have
indicated there's room for negotiation. Can we say this really
is a de escalation, Well, at least the language is
a de escalation.
Speaker 8 (09:57):
The question is what does it actually lead too, because
there's a lot of on the one hand, On the
other commentary coming from US officials, Donald Trump saying that
he thinks he can get a good deal with China.
They're talking with officials unnamed officials in China every single day,
and that he's confident of that. But also we're getting
(10:18):
these reports that he may reduce tariffs on China preemptively
even before there's a negotiation, and then other officials saying,
hang about no, who's not going to do anything like that.
I mean, the messaging overall seems to be they're open
to a conversation. They're indicating that they realize that perhaps
it's escalating to a point that the US doesn't want
(10:40):
it to get to. But the reality is that getting
these tariffs lowered and off is easier said than done.
And equally, he will need China to make some kind
of step towards the US. He can't just lift tariffs
on China or reduce them without something in return.
Speaker 4 (10:58):
So at least the language is softening.
Speaker 8 (11:00):
We're a bit of a way potentially before we get
to tangibles on it.
Speaker 3 (11:03):
And yet there are quite a number of sectors within
the US, executives, individual states, various companies who want who
are putting pressure on on Donald Trump over tariffs. Does
relief on the auto sector look perhaps the most likely
to happen?
Speaker 8 (11:20):
Now, Well, there's been a lot of lobbying from the
auto sector, parade of CEOs, executives, lobbies through Washington saying
this is going to be very damaging for our own
auto industry. In fact, it could lead to layoffs and
some one It's really interesting because of course Donald Trump's
going to Michigan next week, that's where he's going to
(11:41):
mark his one hundred days in office. That's the bedrock
of you know, the US auto industry. So certainly he
doesn't want to be heckled there by people saying that
he's risking jobs in the US. But what we do now,
of course, from our own reporting, is they are looking
at perhaps some easing, they're you know, avoiding the stacking
of tar tariffs for the auto sector, see not putting
(12:02):
tariffs on top of each other. Perhaps again some exemptions
if for the US Mexico Canada hit trade deal, because
of course a lot of the autoparts come through the
Americas as a whole into the US, so there might
be some selective relief that can come. There no promises
from the White House as yet, but we do know
(12:22):
from our own reporting that's being at least discussed.
Speaker 1 (12:25):
This is we've got the parade of financial officials moving
through Washington for the IMF and World Bank Spring meetings.
At the moment of Rachel Reeves saying that she's in
no rush to do a trade deal.
Speaker 8 (12:34):
What's interesting because you have a lot of countries saying
they're rushing to talk, but at the same time, the
narrative is that they would prefer to do a good
deal rather than a quick deal, and then a bad deal,
of course, becomes very very difficult to unwind. So if
you race to get something done, getting it unpicked later
on is very very difficult. And so even with countries
like Japan, India, others who are really at the frontline
(12:57):
of having these negotiations with US officials, you get a
message there also that they would prefer a better deal
over a quick deal, and some suggestion from the White
House even that getting a proper trade deal with the
country like China could take years, so certainly we're getting
that kind of like hurry up, but also weight messaging
coming from a bunch of countries, including the UK.
Speaker 3 (13:20):
Wels thank you so much for being with us this morning,
taking us through all the latest tariff twists. Our EMEA
News director Rosly.
Speaker 1 (13:26):
Matheson Well, the British spilding now Jim Rathcliffe is among
those fitting the pinch from Donald Trump's levies on the
auto sector. His Ineos automotive business, which had already been
facing difficulties from recalls and bankrupt suppliers, now looks even
further from turning a profit. Our UK Business editor Jamie
Nemo joins us now for more on this. Jamie, good morning.
In the automotive's main product is the Grenadier suv. Talk
(13:49):
us through what the state of the business was before
the tariffs.
Speaker 7 (13:53):
Yeah, well, they were really in startup mode and they
still are. I mean it's it's like a nine year
old business. So in startup world, that's you know, quite developments,
but in the car business, that's a long way from
really producing large sums, large volumes of cars. So yes,
they just started selling cars in twenty twenty three, really
(14:15):
trying to ramp up now. So this is a real
blow to their plans to sort of boost sales in
the US, which is its largest market.
Speaker 3 (14:22):
Ah okay, so what's changed since the auto tariffs were imposed?
Speaker 7 (14:26):
So they've raised the prices on a couple of their models.
They've got to pick Up that they've had to raise
by ten percent, and the standard Grenadier is five percent higher.
They hope that, you know, customers will keep coming to
buy the car. The problem for the pickup version is
that it already attracts the twenty five percent chicken TACs,
which has been in place for decades. So you've now
got this double tariff hit. So they're really going to
(14:48):
have to take that blow, and there's there's really not
that much they can do about it.
Speaker 1 (14:52):
What's the kind of comparison with ANYAS versus other car makers,
because of course they're all affected by the tariffs, and
AS is particularly feeling the pain.
Speaker 4 (15:01):
Yeah.
Speaker 7 (15:02):
Well, if you think about VW, for instance, it's you know,
giant company. We talk about the strain it's under, but
in reality it's still churning out huge profits and then
take Ineos. You're a startup, You're really not. You're losing
tons of money at the moment, and it's just going
to get worse. I mean, they were hoping to turn
a profit in the next few years, not exactly sure
when they haven't stated that, but we know now the
(15:24):
CEO told us that this will delay that and it
will take a lot longer. And then you've got the dilemma.
Does he keep putting money and he's having to fund
this it's not his main business. Chemicals is the main thing,
and he's got a lot of you know, a lot
of sport now as well. Man United is the big
high profile investment, so you know he'll really have to
commit or pull the plug.
Speaker 3 (15:44):
Yeah, I'm sort of going to say geomatically, he's such
a well known figure. He's quite controversial. He you know,
he does speak from time to time. So he's he's
perhaps quite well known in the UK obviously for his
wealth and the chemicals business success. What does it mean
for him then, because he's trying to repeat that success
in other sorts of businesses.
Speaker 7 (16:03):
Yeah, he's really trying to prove himself in under other
industries and it's not quite paid off yet. Sport in particular,
He's come in at different times of sports, cycling, football,
Formula one and it's not quite worked out. So this
is another area where he's really trying to prove himself.
So he probably doesn't want to pull the plug. He
really wants to show that he can make this work,
makes a success of it.
Speaker 4 (16:25):
So yeah, that's that's his real thing.
Speaker 7 (16:26):
He wants to just you know, show that he can
he can work his magic in other sectors.
Speaker 1 (16:31):
Is there any cars for optimism from the company in
this as well? How are they thinking about I suppose
that the path away from their current difficulties.
Speaker 4 (16:38):
Yeah, I think so.
Speaker 7 (16:39):
They hope that as they get more mature, they can
you know, strengthen their supply chain. You know, they had
a situation last year where a seat supply went bust
and they had no alternatives than to shut down the factory.
I think they hope that as as it gets older,
they can they'll have they'll have fallbacks in different scenarios,
and also as they as customed, as the brand gets
you know better better in the US in particular, that
(17:02):
they won't have to completely sort of throw huge sums
at marketing to sell the vehicles and it would be
a bit more self sufficient.
Speaker 1 (17:12):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 3 (17:18):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (17:24):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 3 (17:30):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 4 (17:39):
I'm Stephen Carroll.
Speaker 1 (17:39):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
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