May 15, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes. On today's podcast:
(1) Russian President Vladimir Putin named a group of low-level officials to represent his government at talks with Ukraine in Turkey, and gave no indication that he planned to join the negotiations.
(2) Foreign ministers in NATO are gathering to discuss the future of European security. The diplomats meet in Turkey this morning to establish the agenda for the alliance's annual summit in June, where the US has made a higher defense spending target a priority.
(3) Burberry’s new boss is calling time on the British fashion label’s decade-long attempt to join the upper ranks of global luxury.
(4) The White House said President Donald Trump had secured deals totaling more than $243.5 billion with Qatar, laying the groundwork for a bigger $1.2 trillion economic pledge with the tiny Gulf country.
(5) The UK is drawing up plans for a special visa for foreigners who invest significant sums in Britain, as Prime Minister Keir Starmer’s government seeks to blunt the economic blow from recent tax hikes and wider curbs on work permits.
(6) Stephen Jen, a long-time market veteran who runs Eurizon SLJ Capital, has become so discouraged by the fiscal largesse he’s seen from the new administration that he’s started to wonder if the US needs a bond-market blowup akin to the one that did in UK Prime Minister Liz Truss’s government to force it to change course.
Podcast Conversation: Uber Eats Is the Newest Place to Book Prime Restaurant Tables
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 (00:10):
This is the Bloomberg Day BAQ podcast, available every morning
on Apple, Spotify or wherever you listen. It's Thursday, the
fifteenth of May in London. I'm Caroline Hepka and.
Speaker 3 (00:18):
I'm Stephen Carroll.
Speaker 1 (00:19):
Coming up today, Vladimir Putin appoints low level officials for
today's Ukraine talks, possibly dashing Zelensky's hopes for a face
to face meeting.
Speaker 2 (00:28):
Veteran US investor Stephen jen says America could require a
trust moment to force a deficit course correction.
Speaker 1 (00:36):
Plus hitting the brakes on its high end ambitions. Why
Berbery's CEO is calling time on the British fashion labels
attempt to join the upper echelons of global luxury.
Speaker 2 (00:46):
Let's start with a roundup of our top stories.
Speaker 1 (00:49):
Russia's President Vladimir Putin has named a group of low
level officials to join peace talks with Ukraine in Turkey today,
while giving no indication that he plans to attend the
negotiations him self. President Zelensky had challenged Putin to meet
him for talks in Istanbul after the Russian leader offered
to resume direct negotiations to end the conflict. US President
(01:11):
Donald Trump was asked by reporters on Air Force one
about the possibility that Putin might attend, But I don't know.
Speaker 4 (01:17):
And I know he would like me to be there,
and that's the possibility if we could hit the world,
be thinking tomorrow. We're all book the outcrust, the roster.
Speaker 5 (01:30):
But you go if he goes, you.
Speaker 4 (01:32):
Eight tomorrow, so we have over a full story. Now,
that doesn't mean I wouldn't do it to save metal
lives and come back.
Speaker 3 (01:42):
But yeah, I think they're thinking about something. I don't
know that he would be there if I'm not there.
Speaker 1 (01:47):
The US President was speaking on Air Force one as
Zelenski reiterated his willingness to hold direct talks with Putin,
even though he said he had little hope the Russian
leader would show up. The Ukrainian leader also said that
he would not attend talks unless they were held directly
with his Russian counterpart.
Speaker 2 (02:04):
Meanwhile, foreign ministers in NATO are gathering to discuss the
future of European security ahead of a pivotal summit. The
diplomats meet in Turkey this morning to establish the agenda
for NATO's annual summit in June, where the US has
made a higher defense spending target a priority. Germany's Chancellor
Friedrich Mertz says the West needs to stand together.
Speaker 6 (02:28):
It is of paramount importance that the political West, ladies
and gentlemen, does not allow itself to be divided, and
that is why I will continue to make every effort
to ensure the greatest possible unity between the European and
American partners.
Speaker 2 (02:46):
Mertz's Germany is one of the countries taking on large
amounts of debt to rearm NATO estimates that the US
currently accounts for nearly two thirds of the alliance's defense expenditure,
with Canada and Europe funding the rest.
Speaker 1 (03:00):
The UK is drawing up plans for a special visa
for foreigners who invest significant sums in Britain. Bloomberg understands
the plans would focus on getting the money for strategically
important sectors, including AI and clean energy.
Speaker 3 (03:12):
James Wilcock has more.
Speaker 7 (03:14):
Kiss Starmer may say Britain's experiment with migration is over,
but his government still seems to want foreign investors to come.
Ministers are weighing a new visa for anyone who invests
in Britain's strategic sectors. The potential move echoes US President
Donald Trump, who has promised a so called golden visa
to anyone who pays five million dollars to the US Treasury.
(03:36):
The UK proposal comes after a flurry of wealthy residents
have left the country after tax changes in London. James
Wilcock Bloomberg Radio.
Speaker 2 (03:45):
The White House has announced deals with Kuttar Totally more
than two hundred and forty three billion dollars, laying the
groundwork for a bigger one point two trillion dollar economic
pledge with the country now. The agreements include a ninety
six billion dollar plan for cut Our Airways to acquire
Boeing aircraft and a nearly two billion dollar agreement for
cut out A buy US drones. The announcement comes on
(04:09):
the second leg of President Trump's tour of the Middle East,
during which he's focused heavily on securing investment. Michael Froehman,
president of the Council on Follign Relations, says the deals
could be pivotal.
Speaker 8 (04:20):
I think some of the deals are likely to produce
investments here and exports very importantly to those countries over
the medium term. Some are probably more along the lines
of agreement to discuss more investment down the road. And
the other thing about these investments is that it can
take years, if not a decade or more for the
shovels to actually get put in the ground, and very
importantly for jobs to be.
Speaker 3 (04:41):
Created longer term.
Speaker 8 (04:43):
But it's very positive when we're selling more exports to
other countries, like the planes and the engines that we're
in now.
Speaker 2 (04:49):
That was Michael Foreman, the Council of Foreign Relations President
speaking there. Meanwhile, a separate US Saudi defense deal agreed
by Trump has been called into question. Critics of the
move saying that the deal lacks specifics and may include
repurposed agreements secured by previous US administrations. Experts have also
(05:09):
queried the country's ability to agree with those purchases tenure.
Speaker 1 (05:14):
US treasury yields have been moving higher this month. Are's
Investor's Way plans by Congress to cut taxes while the
government is already running a large deficits, But one veteran
investor is suggesting the United States needs a layers trust
moment that brings to you and parts has more.
Speaker 9 (05:30):
For bill currently moving through the House is set to
increase the US government's debt by at least three point
three trillion dollars by twenty thirty four. That's the official
view of the Committee for a Responsible Budget. The deficit
is already large by any normal measure, above six percent
of GDP over each of the last two years, levels
normally only seen in recessions or wars, and that's left
(05:52):
to vester and investor Stephen Jen of Eurizon SLJ Capitol
wondering if the US needs to see a repeat of
what happened to Liz Trust with US tenure yields topping
five percent, He says it's not enough to warn people
about the blooning deficit. Quote they need to be punished.
Jen adds, I'm not giving up completely, but I'm seeing
that we don't seem to be moving in the right direction,
(06:13):
and I'm fearful of what may happen in London.
Speaker 3 (06:15):
I'm you in pots of Bloomberg Radio.
Speaker 2 (06:17):
In his first interview since handing over the reins of
Berkshire Hathaway, the billionaire investor Warren Buffett says he made
the decision to step down after finally feeling his age.
Speaking to The Wall Street Journal, the ninety four year
old said that there was no magic moment when he
knew it was the right time to retire as CEO,
but he had observed how much energy his successor, greg Abel,
(06:39):
brought to every working day and how his own days
had slowed. He said that he did not feel his
age until he was about ninety. Once he did, the
process was irreversible. When asked about staying on a Berkshire
as chairman, he said, my health is fine. I get
to work with people I love, they like me pretty
well and we have a good time.
Speaker 1 (06:57):
The actress Scarlett Johansen has said the highly filmmakers are
being quote muzzled by big tech guys. In an interview
with Vanity Fair magazine, the Avengers star noted that many
of the people who funded the film industry attended US
President Donald Trump's inauguration. She also said boundaries should be
set for the use of artificial intelligence, saying she was
(07:18):
angered at how eerily similar one of the voices on
chat GPT was to hers. Last year, the Marvel star
alleged that OpenAI used her voice without her consent. The
company's CEO Sam Altman denied the claims, but did pause
the system in response.
Speaker 2 (07:33):
Those are some of our top stories for you this morning.
Let's get to the market. So the actually valley waivering.
You've got S and P five hundred even futures down
by two tents of one percent. Socks in Asia are
falling for the first time in five days. MSCI Asia
Pacific Index is down three tens of one percent. US
Treasury yields climbed yesterday thirty a year, briefly touching four
ninety eight this morning, stabilizing since then. You've got markets
(07:57):
thinking about the Trump tax bill, also receive session fears
do seem to be abating, the market continuing to price
out fed cut. So two year yields have risen over
the course of this week around thirteen basis points. Gold
has hit a one month low, falling more than one
percent this morning, Oil tumbling on Iran deal prospects, and
(08:17):
also lots to think about for the rest of today.
Walmart earnings, US retail sales, and you've also got US
UK GDP figures today.
Speaker 3 (08:25):
So those are the markets in the moment.
Speaker 1 (08:27):
We'll bring you more and what to expect from the Russia,
Ukraine talks in Turkey, plus Canberbery's cost cutting efforts finally
helped to turn around the struggling brand. Put another story
that caught our eye this morning, A big deal in
restaurant reservations. If you're one of those people who has
to set an alarm to make sure that you're going
to be able to book a table at the right time.
Uber is now getting in on the act. They're going
(08:48):
to be launching their own dine out icon where you
can reserve restaurant tables via the Uber system essentially, and
the UK is going to be one of the test
markets for us.
Speaker 2 (08:57):
Yeah, in September. Uber's offering incentives, of course, a discount
on your Uber taxi to the restaurant if you book
using Uber Eats. Also, Open Table have got their own
sort of set of incentives for their members. It's going
to launch in London and in Sydney. I mean, is
this basically the height of convenience? Uber just gets to
organized your whole night out, does it?
Speaker 3 (09:17):
Actually it's penialization.
Speaker 1 (09:18):
I think that I'm looking at it this as well,
because there's going to be essentially a new tier that
they're going to be rolling out later this idea. It'll
be able to priority book certain tables if you are,
you know.
Speaker 2 (09:28):
That just annoys me because then you know, basically does
it leave us all increasingly siloed depending on what app
system you happen to use and which tier of views
that you happen to be.
Speaker 3 (09:38):
I don't know that.
Speaker 1 (09:39):
And it's also the feature of there are certain cities
in the world, and London and New York or two
of them where it is you have to plan things
so far in advance, because getting restaurant reservations requires that
you essentially know what you're going to be doing a
Saturday night three months from now, try and get into someone.
Speaker 2 (09:54):
Maybe that's your social calendar sever count Anyway, there we are.
We will put a link in the show notes if
you want to read a bit more about what Uber
is planning. Of course, door Dash their rival, you know,
not to be outdone, they are also planning something.
Speaker 1 (10:09):
They have a partnership with seven Rooms was one of
the other big booking platforms as well, but they still
seemed to be a move that. I mean, there's a
secondary market for restaurant reservations in New York where you
can buy somebody else's restaurant reservation because there are people
who are gaming the system.
Speaker 3 (10:23):
Material extent.
Speaker 1 (10:24):
I mean, you know, I quite like there's quite a
lot of restaurants now that you have to film them,
because essentially that knocks out a whole load of people
and stops people at double or triple booking restaurants, which
you know, it's not something that I've gotten into, and
I do have friends that do it.
Speaker 10 (10:37):
Yeah.
Speaker 2 (10:38):
Absolutely, gosh, there we go, restaurant bookings and new Uber
deals coming your way. Right, let's think about the main story,
of course today Ukraine peace talks in Istanbul in Turkey.
Today are not expected to see direct negotiations between Vladimirsninski
and Vladimir Putin. No actually to involve President Trump, who
(10:59):
suggested that his schedule is too full to include another
stop on his two of the Middle East. You heard
the little clip of him just in our news roundup.
This as the NATO foreign ministers are also meeting informally
in a different city in Turkey, and Antelaia joining us
now to discuss is Bloomberg's executive editor for Economics and Government,
Flavia kraus Jackson. Very good to have you on the program. Flavia,
(11:20):
Good morning. What are we expecting from today's Russia Ukraine
talks firsty, do you think that they could yield any progress?
Speaker 5 (11:28):
I think anyone who's going out definitively and saying that
the three way Trump Zelenski cut meeting is not going
to happen and might beginning over those skates, I mean,
I think we've just been listening to mixed accounts, and
I think if you're listening to Trump's words carefully, he's
trying to essentially coach Putin out.
Speaker 3 (11:47):
So I think we shouldn't exclude the.
Speaker 5 (11:48):
Possibility that this actually may at some point come together
later in the weekend. So I wouldn't give up hope
just yet on that potentially happening. It would be a
huge coup for Trump if it did come through, because
just think about it, it's his first overseas Foray. You know,
obviously he went to the pub's funeral, but he's come
here in the Middle East. He signed what looks on
paper like you know, lots of deals worth billions, you know,
(12:11):
one brillion at one point, even though that that.
Speaker 3 (12:14):
Figure should be questioned. And if he.
Speaker 5 (12:16):
Manages to end the trip by diverting going to Turkey
and who knows, maybe even going to the pub's funeral,
what a trip.
Speaker 3 (12:22):
This would be well.
Speaker 1 (12:23):
Another conversation that Donald Trump is dominating is that meeting
of NATO Foreign minister is also taking place in Turkey
and questions about defense spending.
Speaker 3 (12:33):
Could five percent be possible?
Speaker 5 (12:36):
I mean, I think what we're looking at here is
the classic card of the deal, right, I mean, right
now it's two percent, and a lot of NATO members
are skirting the responsibilities and not doing that. Rote, who's
something of a Trump whisper and has been very good
in a way sarging the president's ego and kind of
trying to cajole people to spend more, has set the
target three point five and obviously there's that aspirational five percent.
(13:01):
So when we get to five percent, I very much
doubt it. I think it's a hard target. But I
think they're setting the scene so that NATO and the
Hague in June could be a success. And I think
to a certain degree, you know, Trump's invocation that you know,
America is no longer going to have to carry the
weight of, you know, defending Europe, and that sort of agreement,
that post war understanding of you know, the US being
(13:23):
the world's cop has ended, and so I think you know,
you can see this in Germany, with the with the
with the fact that they're obviously up there, gain there
that this is having an effect. But when these targets
will be reached as an entirely different question. Europe is
a far far away from being able to do anything
to actually defend itself, should ever be in conditions of war.
Speaker 2 (13:45):
President Trump's Middle East trip that you mentioned has all
these defense deals in it and big price tags. I
mean a billion dollar deal for Qatar to buy Raythean systems,
the first international bar to get this system. Also, it
does come with some big question marks, as you've said,
the Job administration calling this one hundred and forty two billion.
(14:07):
Don't a deal with Saudi Arabia the largest defense sales
agreement in history. What are the question marks around all
of these numbers.
Speaker 5 (14:16):
I think a lot of people are privately chuckling at
the ostentatiousness of these numbers. You know, all that glitters
is in gold, and I think you know, once you
kick the tires on all of this, you see very
much that all is not what it seems right. So
even look at the economic deals, we had one trillion
that actually the White House said six hundred billion, and
then once you start looking a little bit under the bonnet,
(14:37):
it looks more like three hundred billion. And it's a
very similar case, I think, frankly, with this one hundred
and forty two billion defense deal. I think Bruce Rydell
put it very well in one of the stories that
you know, if you compare that to what the Saundi
budget actually is, these numbers just simply don't stack up.
But I think what we're really missing here is the
symbolic value of all this. I mean, it was a
(14:59):
proper love right. I mean NBS was grinning from ear
to ear. Trump looked little bit tight at the beginning
of the trip, but you know, this is the kind
of trip he loves. It's sort of about the money,
the deal, the camaraderie and on on. You know, even
though the glitter of the billion dollar deals isn't quite
what it seems, the actual sort of partnership is very
(15:21):
very important. And I think, you know, even if you
just look at how Israel's Netanyahu is feeling a little bit,
you know, a silent spectator looking in, I think those
kind of optics tell the more important story.
Speaker 1 (15:34):
Okay, Flavia christ Jackson our executive Edger for Economics the Government.
Thank you very much for joining us.
Speaker 2 (15:39):
Now, Barbary results yesterday added to the decade of troubles
at the British fashion icon. Now it's out with elevating
the brand and in with cost cutting. Bloomberg's Tiva Adebaya
joins us with more on this story. Good morning, what's
been going wrong at Birbury? I think this feels a
bit like a moment, the realization of how difficult it's been.
Speaker 3 (16:01):
Yeah, Krolyn.
Speaker 10 (16:01):
It does seem that there comes a time in the
life of most luxury fashion houses when they face this
sort of tug of war really between creativity and economics,
and that seems to be the key issue I think
that's plaguing Berbery at the moment. Yes, the luxury sector
is facing a downturn, but it seems like Burbery's problems
are a bit worse. Their shares have massively underperformed the
(16:22):
S and P Global Luxury Index, for example, and the
brand does look like it's facing a bit of an
identity crisis that has been punctuated by faltering shares, and
that all came to a head yesterday when the CEO
Joshua Shulman announced that the firm is making historic job cuts.
They're getting rid of a fifth of their entire workforce,
and to his mind, Burbery is struggling really because it's
(16:45):
strayed too far from its traditional roots, and that's really
the internal tension that's been gripping the house for the
last few years. There was an attempt by the previous
creative director, Ricardo Tishy. He wanted to pivot the brand
into and also appeal more to Asian markets. You might
have seen the firm ditch its signature logo in favor
(17:06):
of this sort of double B monogram, playing into the
logo mania craze a bit, and they featured some designs
that were more akin to street war than heritage, so
not what you typically see from Birbary. But then they
switched back again and they brought in the new designer,
Daniel Lee from Botaga Vnetta. He's the current creator director.
He was really known at Botaga Fort spearheading viral It handbags,
(17:30):
a big focus on accessories. Under his leadership of Berbery,
we've definitely seen the brand come back further to its roots.
It said that he's bringing Britishness back and we saw
actually a couple of seasons ago they had a really
eye catching fashion Week campaign. It featured the takeover of
a traditional English cafe and also renaming Bond Street station
(17:52):
to Berberry Street. So there was a clear attempt to
really align the brand back with the idea of Britishness,
call Britannia. And now, actually, if you've been at Heathrow
Terminal five recently, you can see their spearhead campaign for
this year, which features a number of British icons. There's
Naomi Campbell in there, and they have also very closely
(18:14):
integrated the imagery of the Night, which is the traditional
Burbary logo and that's blazoned across the arrival section of
the Throat Airport. So it seems that this new CEO
is trying to sort of finally unlock the answers to
pleasing the burwary audience. That seems to be the key
issue they've been facing, falling out of touch with their
(18:35):
core consumer.
Speaker 1 (18:37):
So the CEO's plan now seems to involve a lot
of cost cutting.
Speaker 10 (18:42):
Yeah, it does seem like Shuman really wants to strip
things back to basis. On more than one level. He
looks like he's targeting a more mid market consumer and
that definitely tracks with his previous experience. He's led brands
like Coach and Michael Kre's really speak to that upper
mid elevated basics market. On the business side, he's also
planning to majorly pull back on spending, so perhaps an
(19:04):
end to those costly viral Fashion Week campaigns like naming
the Tube station for example. But essentially he thinks that
for too long Birbary has been trying to compete in
the sort of upper echelons of the fashion conture world.
They've been trying to compete with the likes of Patagua Vinnetta,
for example, bringing Daniel Lee and Jacques Mouse, and.
Speaker 3 (19:22):
It's not working.
Speaker 10 (19:24):
He says that there's been too much of an emphasis
on designing popular, expensive handbags and intricate designs, and now
he wants the brand to go back to doing what
it knows best, so that means more outerwear and crucially,
more of the traditional Berbery check print. Now, so far,
it looks like analysts like what he has to say.
Burbery shares were up seventeen percent at the close yesterday
(19:47):
following his results update.
Speaker 3 (19:49):
And it should be noted that they.
Speaker 10 (19:51):
Did actually outperform expectations in their most recent round of results.
So maybe he'll finally be the CEO who does manage
to marry up that echo nomic and creative side of Birbury.
Speaker 1 (20:05):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:11):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (20:17):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:23):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 3 (20:31):
I'm Caroline Hepka and I'm Stephen Carroll.
Speaker 1 (20:33):
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 Day BAQ podcast, available every morning
on Apple, Spotify or wherever you listen. It's Thursday, the
fifteenth of May in London. I'm Caroline Hepka and.
Speaker 3 (00:18):
I'm Stephen Carroll.
Speaker 1 (00:19):
Coming up today, Vladimir Putin appoints low level officials for
today's Ukraine talks, possibly dashing Zelensky's hopes for a face
to face meeting.
Speaker 2 (00:28):
Veteran US investor Stephen jen says America could require a
trust moment to force a deficit course correction.
Speaker 1 (00:36):
Plus hitting the brakes on its high end ambitions. Why
Berbery's CEO is calling time on the British fashion labels
attempt to join the upper echelons of global luxury.
Speaker 2 (00:46):
Let's start with a roundup of our top stories.
Speaker 1 (00:49):
Russia's President Vladimir Putin has named a group of low
level officials to join peace talks with Ukraine in Turkey today,
while giving no indication that he plans to attend the
negotiations him self. President Zelensky had challenged Putin to meet
him for talks in Istanbul after the Russian leader offered
to resume direct negotiations to end the conflict. US President
(01:11):
Donald Trump was asked by reporters on Air Force one
about the possibility that Putin might attend, But I don't know.
Speaker 4 (01:17):
And I know he would like me to be there,
and that's the possibility if we could hit the world,
be thinking tomorrow. We're all book the outcrust, the roster.
Speaker 5 (01:30):
But you go if he goes, you.
Speaker 4 (01:32):
Eight tomorrow, so we have over a full story. Now,
that doesn't mean I wouldn't do it to save metal
lives and come back.
Speaker 3 (01:42):
But yeah, I think they're thinking about something. I don't
know that he would be there if I'm not there.
Speaker 1 (01:47):
The US President was speaking on Air Force one as
Zelenski reiterated his willingness to hold direct talks with Putin,
even though he said he had little hope the Russian
leader would show up. The Ukrainian leader also said that
he would not attend talks unless they were held directly
with his Russian counterpart.
Speaker 2 (02:04):
Meanwhile, foreign ministers in NATO are gathering to discuss the
future of European security ahead of a pivotal summit. The
diplomats meet in Turkey this morning to establish the agenda
for NATO's annual summit in June, where the US has
made a higher defense spending target a priority. Germany's Chancellor
Friedrich Mertz says the West needs to stand together.
Speaker 6 (02:28):
It is of paramount importance that the political West, ladies
and gentlemen, does not allow itself to be divided, and
that is why I will continue to make every effort
to ensure the greatest possible unity between the European and
American partners.
Speaker 2 (02:46):
Mertz's Germany is one of the countries taking on large
amounts of debt to rearm NATO estimates that the US
currently accounts for nearly two thirds of the alliance's defense expenditure,
with Canada and Europe funding the rest.
Speaker 1 (03:00):
The UK is drawing up plans for a special visa
for foreigners who invest significant sums in Britain. Bloomberg understands
the plans would focus on getting the money for strategically
important sectors, including AI and clean energy.
Speaker 3 (03:12):
James Wilcock has more.
Speaker 7 (03:14):
Kiss Starmer may say Britain's experiment with migration is over,
but his government still seems to want foreign investors to come.
Ministers are weighing a new visa for anyone who invests
in Britain's strategic sectors. The potential move echoes US President
Donald Trump, who has promised a so called golden visa
to anyone who pays five million dollars to the US Treasury.
(03:36):
The UK proposal comes after a flurry of wealthy residents
have left the country after tax changes in London. James
Wilcock Bloomberg Radio.
Speaker 2 (03:45):
The White House has announced deals with Kuttar Totally more
than two hundred and forty three billion dollars, laying the
groundwork for a bigger one point two trillion dollar economic
pledge with the country now. The agreements include a ninety
six billion dollar plan for cut Our Airways to acquire
Boeing aircraft and a nearly two billion dollar agreement for
cut out A buy US drones. The announcement comes on
(04:09):
the second leg of President Trump's tour of the Middle East,
during which he's focused heavily on securing investment. Michael Froehman,
president of the Council on Follign Relations, says the deals
could be pivotal.
Speaker 8 (04:20):
I think some of the deals are likely to produce
investments here and exports very importantly to those countries over
the medium term. Some are probably more along the lines
of agreement to discuss more investment down the road. And
the other thing about these investments is that it can
take years, if not a decade or more for the
shovels to actually get put in the ground, and very
importantly for jobs to be.
Speaker 3 (04:41):
Created longer term.
Speaker 8 (04:43):
But it's very positive when we're selling more exports to
other countries, like the planes and the engines that we're
in now.
Speaker 2 (04:49):
That was Michael Foreman, the Council of Foreign Relations President
speaking there. Meanwhile, a separate US Saudi defense deal agreed
by Trump has been called into question. Critics of the
move saying that the deal lacks specifics and may include
repurposed agreements secured by previous US administrations. Experts have also
(05:09):
queried the country's ability to agree with those purchases tenure.
Speaker 1 (05:14):
US treasury yields have been moving higher this month. Are's
Investor's Way plans by Congress to cut taxes while the
government is already running a large deficits, But one veteran
investor is suggesting the United States needs a layers trust
moment that brings to you and parts has more.
Speaker 9 (05:30):
For bill currently moving through the House is set to
increase the US government's debt by at least three point
three trillion dollars by twenty thirty four. That's the official
view of the Committee for a Responsible Budget. The deficit
is already large by any normal measure, above six percent
of GDP over each of the last two years, levels
normally only seen in recessions or wars, and that's left
(05:52):
to vester and investor Stephen Jen of Eurizon SLJ Capitol
wondering if the US needs to see a repeat of
what happened to Liz Trust with US tenure yields topping
five percent, He says it's not enough to warn people
about the blooning deficit. Quote they need to be punished.
Jen adds, I'm not giving up completely, but I'm seeing
that we don't seem to be moving in the right direction,
(06:13):
and I'm fearful of what may happen in London.
Speaker 3 (06:15):
I'm you in pots of Bloomberg Radio.
Speaker 2 (06:17):
In his first interview since handing over the reins of
Berkshire Hathaway, the billionaire investor Warren Buffett says he made
the decision to step down after finally feeling his age.
Speaking to The Wall Street Journal, the ninety four year
old said that there was no magic moment when he
knew it was the right time to retire as CEO,
but he had observed how much energy his successor, greg Abel,
(06:39):
brought to every working day and how his own days
had slowed. He said that he did not feel his
age until he was about ninety. Once he did, the
process was irreversible. When asked about staying on a Berkshire
as chairman, he said, my health is fine. I get
to work with people I love, they like me pretty
well and we have a good time.
Speaker 1 (06:57):
The actress Scarlett Johansen has said the highly filmmakers are
being quote muzzled by big tech guys. In an interview
with Vanity Fair magazine, the Avengers star noted that many
of the people who funded the film industry attended US
President Donald Trump's inauguration. She also said boundaries should be
set for the use of artificial intelligence, saying she was
(07:18):
angered at how eerily similar one of the voices on
chat GPT was to hers. Last year, the Marvel star
alleged that OpenAI used her voice without her consent. The
company's CEO Sam Altman denied the claims, but did pause
the system in response.
Speaker 2 (07:33):
Those are some of our top stories for you this morning.
Let's get to the market. So the actually valley waivering.
You've got S and P five hundred even futures down
by two tents of one percent. Socks in Asia are
falling for the first time in five days. MSCI Asia
Pacific Index is down three tens of one percent. US
Treasury yields climbed yesterday thirty a year, briefly touching four
ninety eight this morning, stabilizing since then. You've got markets
(07:57):
thinking about the Trump tax bill, also receive session fears
do seem to be abating, the market continuing to price
out fed cut. So two year yields have risen over
the course of this week around thirteen basis points. Gold
has hit a one month low, falling more than one
percent this morning, Oil tumbling on Iran deal prospects, and
(08:17):
also lots to think about for the rest of today.
Walmart earnings, US retail sales, and you've also got US
UK GDP figures today.
Speaker 3 (08:25):
So those are the markets in the moment.
Speaker 1 (08:27):
We'll bring you more and what to expect from the Russia,
Ukraine talks in Turkey, plus Canberbery's cost cutting efforts finally
helped to turn around the struggling brand. Put another story
that caught our eye this morning, A big deal in
restaurant reservations. If you're one of those people who has
to set an alarm to make sure that you're going
to be able to book a table at the right time.
Uber is now getting in on the act. They're going
(08:48):
to be launching their own dine out icon where you
can reserve restaurant tables via the Uber system essentially, and
the UK is going to be one of the test
markets for us.
Speaker 2 (08:57):
Yeah, in September. Uber's offering incentives, of course, a discount
on your Uber taxi to the restaurant if you book
using Uber Eats. Also, Open Table have got their own
sort of set of incentives for their members. It's going
to launch in London and in Sydney. I mean, is
this basically the height of convenience? Uber just gets to
organized your whole night out, does it?
Speaker 3 (09:17):
Actually it's penialization.
Speaker 1 (09:18):
I think that I'm looking at it this as well,
because there's going to be essentially a new tier that
they're going to be rolling out later this idea. It'll
be able to priority book certain tables if you are,
you know.
Speaker 2 (09:28):
That just annoys me because then you know, basically does
it leave us all increasingly siloed depending on what app
system you happen to use and which tier of views
that you happen to be.
Speaker 3 (09:38):
I don't know that.
Speaker 1 (09:39):
And it's also the feature of there are certain cities
in the world, and London and New York or two
of them where it is you have to plan things
so far in advance, because getting restaurant reservations requires that
you essentially know what you're going to be doing a
Saturday night three months from now, try and get into someone.
Speaker 2 (09:54):
Maybe that's your social calendar sever count Anyway, there we are.
We will put a link in the show notes if
you want to read a bit more about what Uber
is planning. Of course, door Dash their rival, you know,
not to be outdone, they are also planning something.
Speaker 1 (10:09):
They have a partnership with seven Rooms was one of
the other big booking platforms as well, but they still
seemed to be a move that. I mean, there's a
secondary market for restaurant reservations in New York where you
can buy somebody else's restaurant reservation because there are people
who are gaming the system.
Speaker 3 (10:23):
Material extent.
Speaker 1 (10:24):
I mean, you know, I quite like there's quite a
lot of restaurants now that you have to film them,
because essentially that knocks out a whole load of people
and stops people at double or triple booking restaurants, which
you know, it's not something that I've gotten into, and
I do have friends that do it.
Speaker 10 (10:37):
Yeah.
Speaker 2 (10:38):
Absolutely, gosh, there we go, restaurant bookings and new Uber
deals coming your way. Right, let's think about the main story,
of course today Ukraine peace talks in Istanbul in Turkey.
Today are not expected to see direct negotiations between Vladimirsninski
and Vladimir Putin. No actually to involve President Trump, who
(10:59):
suggested that his schedule is too full to include another
stop on his two of the Middle East. You heard
the little clip of him just in our news roundup.
This as the NATO foreign ministers are also meeting informally
in a different city in Turkey, and Antelaia joining us
now to discuss is Bloomberg's executive editor for Economics and Government,
Flavia kraus Jackson. Very good to have you on the program. Flavia,
(11:20):
Good morning. What are we expecting from today's Russia Ukraine
talks firsty, do you think that they could yield any progress?
Speaker 5 (11:28):
I think anyone who's going out definitively and saying that
the three way Trump Zelenski cut meeting is not going
to happen and might beginning over those skates, I mean,
I think we've just been listening to mixed accounts, and
I think if you're listening to Trump's words carefully, he's
trying to essentially coach Putin out.
Speaker 3 (11:47):
So I think we shouldn't exclude the.
Speaker 5 (11:48):
Possibility that this actually may at some point come together
later in the weekend. So I wouldn't give up hope
just yet on that potentially happening. It would be a
huge coup for Trump if it did come through, because
just think about it, it's his first overseas Foray. You know,
obviously he went to the pub's funeral, but he's come
here in the Middle East. He signed what looks on
paper like you know, lots of deals worth billions, you know,
(12:11):
one brillion at one point, even though that that.
Speaker 3 (12:14):
Figure should be questioned. And if he.
Speaker 5 (12:16):
Manages to end the trip by diverting going to Turkey
and who knows, maybe even going to the pub's funeral,
what a trip.
Speaker 3 (12:22):
This would be well.
Speaker 1 (12:23):
Another conversation that Donald Trump is dominating is that meeting
of NATO Foreign minister is also taking place in Turkey
and questions about defense spending.
Speaker 3 (12:33):
Could five percent be possible?
Speaker 5 (12:36):
I mean, I think what we're looking at here is
the classic card of the deal, right, I mean, right
now it's two percent, and a lot of NATO members
are skirting the responsibilities and not doing that. Rote, who's
something of a Trump whisper and has been very good
in a way sarging the president's ego and kind of
trying to cajole people to spend more, has set the
target three point five and obviously there's that aspirational five percent.
(13:01):
So when we get to five percent, I very much
doubt it. I think it's a hard target. But I
think they're setting the scene so that NATO and the
Hague in June could be a success. And I think
to a certain degree, you know, Trump's invocation that you know,
America is no longer going to have to carry the
weight of, you know, defending Europe, and that sort of agreement,
that post war understanding of you know, the US being
(13:23):
the world's cop has ended, and so I think you know,
you can see this in Germany, with the with the
with the fact that they're obviously up there, gain there
that this is having an effect. But when these targets
will be reached as an entirely different question. Europe is
a far far away from being able to do anything
to actually defend itself, should ever be in conditions of war.
Speaker 2 (13:45):
President Trump's Middle East trip that you mentioned has all
these defense deals in it and big price tags. I
mean a billion dollar deal for Qatar to buy Raythean systems,
the first international bar to get this system. Also, it
does come with some big question marks, as you've said,
the Job administration calling this one hundred and forty two billion.
(14:07):
Don't a deal with Saudi Arabia the largest defense sales
agreement in history. What are the question marks around all
of these numbers.
Speaker 5 (14:16):
I think a lot of people are privately chuckling at
the ostentatiousness of these numbers. You know, all that glitters
is in gold, and I think you know, once you
kick the tires on all of this, you see very
much that all is not what it seems right. So
even look at the economic deals, we had one trillion
that actually the White House said six hundred billion, and
then once you start looking a little bit under the bonnet,
(14:37):
it looks more like three hundred billion. And it's a
very similar case, I think, frankly, with this one hundred
and forty two billion defense deal. I think Bruce Rydell
put it very well in one of the stories that
you know, if you compare that to what the Saundi
budget actually is, these numbers just simply don't stack up.
But I think what we're really missing here is the
symbolic value of all this. I mean, it was a
(14:59):
proper love right. I mean NBS was grinning from ear
to ear. Trump looked little bit tight at the beginning
of the trip, but you know, this is the kind
of trip he loves. It's sort of about the money,
the deal, the camaraderie and on on. You know, even
though the glitter of the billion dollar deals isn't quite
what it seems, the actual sort of partnership is very
(15:21):
very important. And I think, you know, even if you
just look at how Israel's Netanyahu is feeling a little bit,
you know, a silent spectator looking in, I think those
kind of optics tell the more important story.
Speaker 1 (15:34):
Okay, Flavia christ Jackson our executive Edger for Economics the Government.
Thank you very much for joining us.
Speaker 2 (15:39):
Now, Barbary results yesterday added to the decade of troubles
at the British fashion icon. Now it's out with elevating
the brand and in with cost cutting. Bloomberg's Tiva Adebaya
joins us with more on this story. Good morning, what's
been going wrong at Birbury? I think this feels a
bit like a moment, the realization of how difficult it's been.
Speaker 3 (16:01):
Yeah, Krolyn.
Speaker 10 (16:01):
It does seem that there comes a time in the
life of most luxury fashion houses when they face this
sort of tug of war really between creativity and economics,
and that seems to be the key issue I think
that's plaguing Berbery at the moment. Yes, the luxury sector
is facing a downturn, but it seems like Burbery's problems
are a bit worse. Their shares have massively underperformed the
(16:22):
S and P Global Luxury Index, for example, and the
brand does look like it's facing a bit of an
identity crisis that has been punctuated by faltering shares, and
that all came to a head yesterday when the CEO
Joshua Shulman announced that the firm is making historic job cuts.
They're getting rid of a fifth of their entire workforce,
and to his mind, Burbery is struggling really because it's
(16:45):
strayed too far from its traditional roots, and that's really
the internal tension that's been gripping the house for the
last few years. There was an attempt by the previous
creative director, Ricardo Tishy. He wanted to pivot the brand
into and also appeal more to Asian markets. You might
have seen the firm ditch its signature logo in favor
(17:06):
of this sort of double B monogram, playing into the
logo mania craze a bit, and they featured some designs
that were more akin to street war than heritage, so
not what you typically see from Birbary. But then they
switched back again and they brought in the new designer,
Daniel Lee from Botaga Vnetta. He's the current creator director.
He was really known at Botaga Fort spearheading viral It handbags,
(17:30):
a big focus on accessories. Under his leadership of Berbery,
we've definitely seen the brand come back further to its roots.
It said that he's bringing Britishness back and we saw
actually a couple of seasons ago they had a really
eye catching fashion Week campaign. It featured the takeover of
a traditional English cafe and also renaming Bond Street station
(17:52):
to Berberry Street. So there was a clear attempt to
really align the brand back with the idea of Britishness,
call Britannia. And now, actually, if you've been at Heathrow
Terminal five recently, you can see their spearhead campaign for
this year, which features a number of British icons. There's
Naomi Campbell in there, and they have also very closely
(18:14):
integrated the imagery of the Night, which is the traditional
Burbary logo and that's blazoned across the arrival section of
the Throat Airport. So it seems that this new CEO
is trying to sort of finally unlock the answers to
pleasing the burwary audience. That seems to be the key
issue they've been facing, falling out of touch with their
(18:35):
core consumer.
Speaker 1 (18:37):
So the CEO's plan now seems to involve a lot
of cost cutting.
Speaker 10 (18:42):
Yeah, it does seem like Shuman really wants to strip
things back to basis. On more than one level. He
looks like he's targeting a more mid market consumer and
that definitely tracks with his previous experience. He's led brands
like Coach and Michael Kre's really speak to that upper
mid elevated basics market. On the business side, he's also
planning to majorly pull back on spending, so perhaps an
(19:04):
end to those costly viral Fashion Week campaigns like naming
the Tube station for example. But essentially he thinks that
for too long Birbary has been trying to compete in
the sort of upper echelons of the fashion conture world.
They've been trying to compete with the likes of Patagua Vinnetta,
for example, bringing Daniel Lee and Jacques Mouse, and.
Speaker 3 (19:22):
It's not working.
Speaker 10 (19:24):
He says that there's been too much of an emphasis
on designing popular, expensive handbags and intricate designs, and now
he wants the brand to go back to doing what
it knows best, so that means more outerwear and crucially,
more of the traditional Berbery check print. Now, so far,
it looks like analysts like what he has to say.
Burbery shares were up seventeen percent at the close yesterday
(19:47):
following his results update.
Speaker 3 (19:49):
And it should be noted that they.
Speaker 10 (19:51):
Did actually outperform expectations in their most recent round of results.
So maybe he'll finally be the CEO who does manage
to marry up that echo nomic and creative side of Birbury.
Speaker 1 (20:05):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:11):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (20:17):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:23):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 3 (20:31):
I'm Caroline Hepka and I'm Stephen Carroll.
Speaker 1 (20:33):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
Europe
Popular Podcasts
Are You A Charlotte?
In 1997, actress Kristin Davis’ life was forever changed when she took on the role of Charlotte York in Sex and the City. As we watched Carrie, Samantha, Miranda and Charlotte navigate relationships in NYC, the show helped push once unacceptable conversation topics out of the shadows and altered the narrative around women and sex. We all saw ourselves in them as they searched for fulfillment in life, sex and friendships. Now, Kristin Davis wants to connect with you, the fans, and share untold stories and all the behind the scenes. Together, with Kristin and special guests, what will begin with Sex and the City will evolve into talks about themes that are still so relevant today. "Are you a Charlotte?" is much more than just rewatching this beloved show, it brings the past and the present together as we talk with heart, humor and of course some optimism.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
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