July 15, 2025 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Chancellor of the Exchequer Rachel Reeves will highlight plans to spur homeownership by easing access to mortgages in her flagship annual address to the City of London, a key moment for Britain’s finance minister as she seeks to bounce back from a rocky period that included a market-moving tearful appearance in the House of Commons.
(2) The UK economy is showing more signs of rebounding from its recent slump, with a jump in June retail sales adding to evidence of a strong pick-up in activity seen in other leading indicators.
(3) China’s economic growth exceeded expectations in the second quarter, but strong exports to markets outside the US masked deepening pressure caused by weak consumer demand at home.
(4) Nvidia Corp. plans to resume sales of its H20 AI chip to China after securing Washington’s assurances that such shipments would get approved, a dramatic reversal from the Trump administration’s earlier stance.
(5) US President Donald Trump threatened to impose stiff financial penalties on Russia if it does not end hostilities with Ukraine even as he pledged fresh weapons supplies for Kyiv.
(6) The European Union has finalized a second list of countermeasures to target US goods worth €72 billion ($84 billion), including Boeing Co. aircraft, automobiles and bourbon if it decides to retaliate as transatlantic trade tensions intensify.
Podcast Conversation: What’s in a Fob? The Surprising Complexity of Designing Car Keys
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Episode Transcript
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Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Blueberg Day BAC you at podcast. Good Morning.
Speaker 3 (00:12):
It's Tuesday, the fifteenth of July. I'm Caroline Hepkat in London.
Speaker 4 (00:15):
And I'm Stephen Caroline Brussels. Coming up today, the UK's Chancellor,
Rachel Reeves will face the city for her first major
speech since her tearful appearance in Parliament sparked a bond
market sell off.
Speaker 3 (00:27):
Nvidia gets the green light to resume certain AI chip
sales to China after a dramatic White House reversal.
Speaker 4 (00:35):
Plus targeting Boeing and Bourbon, the EU finalizes a new
Tara retaliation list hitting American goods worth eighty four billion
dollars if a trade deal can't be reached.
Speaker 2 (00:47):
Let's start with a roundup of our top stories.
Speaker 4 (00:49):
Britain's Chancellor, Rachel Reeves will pledge to cut red tape
in her annual speech to London's financial sector in a
bid to help drive the government's growth plans. Reeves is
expected to say that dial up risk will allow more
families access to mortgages. It'll be the Chancellor's first major
public speech since UK assets sold off less than two
weeks ago when she appeared visibly upset in Parliament, but
(01:12):
since then the city has grown increasingly wary of taxes.
Down the line Bloomberg James Wilcock has the.
Speaker 5 (01:17):
Story Chancellor Reeves's mansion house dinner could be mistaken for tapass.
There are many small plates on offer to the financial
sector at concierge servers for international investors, reforms to the
financial lombudsman and a new captive insurance regime, and the
city has been teased with hopes for a review of
ring fencing rules and possibly an entrepreneur's visa system. But
(01:41):
despite these tasty morsels around deregulation and growth, many in
the world of finance see the government's fiscal worries wonder
if the bill is going to be coming later in
the autumn budget in London James Orcock Bloomberg Radio.
Speaker 3 (01:55):
Well. The Chancellor's speech comes as the UK economy shows
more signs of rebounding from its recent slump. June's retail
sales figures rose by three point one percent from a
year earlier, according to data from the British Retail Consortium.
It's a positive signal after US tariffs, tax increases, and
a minimum wage hike drove back to back contractions in
(02:17):
retail sales in April and May, in.
Speaker 4 (02:20):
Vidios preparing to resume sales of high end AI chips
to China after getting the green light from the Trump administration.
The H twenty chip was designed specifically by Nvidia to
comply with earlier US trade restrictions, but has been banned
from sale in the country since April. In a blog post,
the tech giant says that US officials have now told
(02:40):
them they will approve export licenses. Gene Monster of Deep
Water Asset Management says the move comes after weeks of
thawing relations between Beijing and Washington.
Speaker 6 (02:51):
My suspicion is that some of the semi trade truth
I'm creating luckdin' given everything that's going on to call
it that, but that we have seen between the US
and China probably laid the groundwork a few weeks ago
that this in fact was going to happen with Nvidio.
And so what does it mean. What is the Trump
administration essentially saying is that they have to give something
(03:13):
to get something.
Speaker 4 (03:15):
Gene Monster adds the US reversal as a significant win
for Nvidia CEO jens and huang He had previously branded
Washington's chip curbs of failure that fueled the rise of
Huawei and other Chinese AI rivals.
Speaker 2 (03:29):
Some more data now.
Speaker 3 (03:30):
China's economy grew faster than expected in the second quarter.
GDP rose by five point two percent, after again a
five point four percent in the first three months of
the year. However, strong exports to markets outside the US
mass deepening pressure from weak domestic demand within China. Despite
a raft of government subsidies, excess manufacturing capacity and weak
(03:54):
confidence in the property sector continued to suppress Chinese consumption.
Speaker 4 (04:00):
US President Donald Trump has threatened to impose severe tariffs
on Russia if it does not end the war with Ukraine.
The news comes as the US pledges fresh weapons supplies
for Kiev, which Trump says will be paid for by
NATO member states. Speaking during a meeting with NATO's Secretary
General at the White House, Trump set out a timeline
for the Russian president.
Speaker 6 (04:20):
I'm disappointed in President Putin because I thought we would
have had a deal two months ago.
Speaker 1 (04:25):
But if it doesn't seem to get there, so.
Speaker 6 (04:28):
Based on that, we're going to be doing secondary tariffs.
Speaker 1 (04:31):
If we don't have a deal on fifty days. It's
very simple, and they'll be at one hundred percent.
Speaker 4 (04:36):
President Trump, speaking during a meeting With's Mark Rutta there
Matt Whitaker, the US ambassador to NATO, says the planned
action effectively represents secondary sanctions on countries that are buying
oil from Russia. The President didn't elaborate on the powers
he would use to impose those tariffs, but said he
wasn't sure if congressional approval would be needed.
Speaker 3 (04:55):
Bloomberg understands that the European Union has finalized a second
list of US US tariff countermeasures, targeting goods worth seventy
two billion euros. The list includes Boeing aircraft and bourbon,
as well as additional duties on machinery products, chemicals and plastics,
medical devices, wines, and other agricultural goods. Our Senior White
(05:16):
House correspondent josh Win Grove says Europe is a significant
market for President Trump.
Speaker 7 (05:23):
And the question is, of course, will they land somewhere
or will Trump look at wherever they are in a
week or two and think that that's either not enough
and stick with the thirty percent, or it is enough
and go to a lower number. Remember, of course, the
baseline number right now is ten percent. He initially announced
twenty percent on Europe in the initial Liberation Day tariffs.
He's threatened as high as fifty percent on Europe and
(05:45):
is always you know, that's been kind of one of
the top of the list places that he's complained about
when he talks about unfair trade relationships.
Speaker 3 (05:52):
Bloomberg's Josh Wingrove there on Trump's EU tariff plans. EU
member states still need to give their approval before the
European list is adopted. The measures are a response to
President Trump's earlier so called reciprocal tariff of twenty percent
hitting most goods, and the additional levies on cars and
car parts of twenty five percent. The universal rate was
(06:16):
later temporarily lowered to ten percent to allow negotiations to
take place.
Speaker 4 (06:22):
France's Prime Minister with Atlanta planned today to sharply narrow
the country's budget deficit. The move by Francois Bayrus sets
the stage for a parliamentary battle at risks triggering another
government collapse. Prime Minster will present details of around forty
billion euros and spending cuts and tax increases for next year.
The proposals are aimed at shrinking the Euro Area's largest
(06:42):
budget gap, as France's fiscal difficulties continue to rattle bond markets.
Earlier this month, the country's five year bond yield surpassed
Italy's for the first time in twenty years.
Speaker 3 (06:53):
And those are our top stories for you this morning.
So let's think about markets which are really focused on
the US inflation data. There are a number of other
countries reporting CPI, but the US is the most significant,
coming out at one thirty pm. Clues on the impact
of Trump tariffs in June and the direction of course
of interest rates. In terms of the market response, at
(07:14):
the moment, the MSCI Aged Pacificate Index has been swinging
between small gains.
Speaker 2 (07:18):
And losses, so a lot of hesitation.
Speaker 3 (07:20):
Japan's ten year government bond yields are climbing to its
highest level since two thousand and eight. You've also got
corporate earning season, though really taking whole jp Morgan Chase, Wells,
Fargo City and black Rock all due to report today
subdue their expectations, so do we see some big beats there?
And Bitcoin, we saw a surge above one hundred and
twenty thousand dollars on Monday. We are below that one
(07:41):
hundred and seventeen thousand this morning, so pretty incredible run
though for bitcoin over the course of this year is
something like twenty seven percent.
Speaker 2 (07:50):
Those are the markets.
Speaker 4 (07:52):
In a moment, we'll look ahead to tonight's imagine how
speech and the Chancellor. I'm bringing you the latest on
the UUs trade dispute with the story we've been reading
this morning now, Carla, it's been a long time since
I owned a car. Whatever to my rent one. I
am sort of mystified by the block of plastic that
I could handle the counter because keys are out, fobs
are in. Everyone else knows this except me like you,
(08:13):
who drives regularly. But apparently this is something that now
has become a key design feature of high end cars
as well.
Speaker 3 (08:20):
I love how this is described in Hannah Elliott's piece.
Speaker 2 (08:23):
It's like the handshake.
Speaker 3 (08:24):
You know, it gives you a little taste of what
the car design is all about. You know, get it
wrong and you can be severely punished by by drivers
as you say yes, I think if you see even
as the ultimate car free European city dweller.
Speaker 4 (08:39):
While Shelton's love cars, so you know, maybe maybe things
will change now that I'm in Brussels, you know, maybe
I'll be finally tempted back onto the roads. But I
like some of the designs in this piece of the
kind of the fancy fobs are incredible, Like there's a
Bentley one there, there's the Lotus pebble which is sort
of a triangle. You know, there's a lot of effort
now being put into designing what these things look like.
(09:00):
They're meant to be a reflected to the vehicle. They
don't always get it right. Hannah Elliott points at points
out as well and that there was a recent Cadillac
model that kind of didn't go down very well because
it was essentially just a plastic piece in a little
leather wallet. People didn't feel reflected the luxury of the car.
Speaker 3 (09:14):
And that probably the price tag as well. I mean, look,
even the keyfob though, might be going extinct because actually
loads of the high end cars just have apps.
Speaker 4 (09:22):
Now open it with your mind, Caroline, that's the next step.
I think you can read Hanna's piece on Blueberg Dot
comment on the terminal. We'll put a link to the
article in our show notes as well. But the Chancellor
rach To Reevees makes her annual speech to London's financial
industry later at Mansion House, a key moment for the
sector but also for the Chancellor for herself after the
recent market jitters over her future. Our financial porter Leo
(09:44):
kenscherper joins us now for more Leo, good morning. What
are the key announcements then we're expecting from the Chancellor?
Speaker 8 (09:50):
Good morning, Stephen.
Speaker 6 (09:51):
Yes.
Speaker 8 (09:52):
So ahead of Rachel reeves annual mention, how speech in
the city, the Chancellor will actually be in Leeds first
first off and reveal measures to increase home ownership, and
she will reveal I think you said earlier as well
a permanent mortgage guarantee scheme and also more home loans
for people on lower incomes. And then when she's in
the city tonight she is going to announce a, among
(10:15):
various other things, a concierge service for international investors who
want to put money into the UK, and that service
will sort of help them navigate issues around visas and regulation.
Another key measure that's hotly anticipated by many in the
city is cutting the burden of the senior managers and
certification regime, basically making it easier for financial institutions to
(10:39):
appoint senior managers and shortening the regulatory review from three
to two months. Those are some of the measures that
I expected tonight.
Speaker 3 (10:48):
Yeah, okay, so what are we expecting then? And might
we get any announcements on tax because that's the other
big worry.
Speaker 8 (10:58):
Yes, exactly, that's the big one. So our understanding is
to not expect any announcements on text, but any signaling
around wealth taxes non norm Texas. Potential backtracking here would
most likely be the biggest story out of the Dimensional
House speech. You know, when I was talking to people
in the city asking them what they expect tonight, they
(11:21):
they would always ask ask the question back, you know,
well what are you hearing about wealth Texas? You know,
that's definitely a big thorn in the side for many
people in the city. The Lord Mayor Alistair King, who
is hosting a dinner tonight, told us a few weeks
ago that the government really needs to stop the non
dom exodus and many expect the Treasury to act eventually,
but probably not today.
Speaker 4 (11:43):
How significant is this moment for Rachel Reeves after we
had that recent Guild market sellaff.
Speaker 8 (11:50):
Yeah, it's a good question. So it definitely is a
big moment for her. I'd say not necessarily for the
guild market, because they are on no physical mat just expected.
I was talking to Guild market participants and they're not
necessarily waiting with bated breath for what Rees is going
to say. But I think it's key for her to
(12:10):
maintain her support from people in the city, from executives.
She was off to a good start, you know, praised
by CEOs of asset managers for instance, for her growth agenda,
but the Nondum exodus and also relatively slow movement around
issues such as the reform of ISAs the individual savings
accounts that has definitely irritated some of her early supporters
(12:32):
in the city.
Speaker 2 (12:33):
Interesting.
Speaker 3 (12:34):
Yeah, So Rachel Vee is speaking tonight at the Mansion
House dinner, but also the Bank of Engan Governor Andrew
Bailey will be delivering his annual speech at that event too. Lea,
thank you so much for looking ahead to what's happening today,
our finance supporter, Leo kensherper.
Speaker 4 (12:48):
Now, the European Union has finalized a second list of
countermeasures targeting American goods worth seventy two billion euros if
it decides to retaliate as transatlantic trade tensions intensified. Still
hopeful the negotiate a deal to avoid the thirty percent
levy threatened by Donald Trump. Let's bring in our EMAIS
director Rosaland Matheson for more on this as well. First, Rods,
(13:10):
just on what we've been hearing from Donald Trump. He's
indicated he's open to more talks with the EU, but
is there any sign of actually any progress.
Speaker 9 (13:19):
Well, it does make it a bit harder when Donald
Trump says that his letters laying out tariffrets are actual deals,
because they're not.
Speaker 1 (13:26):
It's the US imposing a tariffrate.
Speaker 9 (13:28):
So that's the climate in which a lot of countries
are trying to negotiate or work out how to negotiate
with the US and the path forward. There's been lots
of rounds of talks between the EU and the US
there and more to come. Are The EU trade negotiator
Mara Tetkovich was due to talk last night with the
US Commerce Secretary how Latnik, so we'll see how that went.
(13:50):
He's also warned that while they have to prepare for
all outcomes, that this proposed duty, he's said, is quite
effectively prohibitive.
Speaker 1 (13:58):
For transatlantic trade. The preference is still for a deal.
I mean, it's wrangling between the EU.
Speaker 9 (14:03):
Some of the bigger states are saying, should we do
a deal for the sake of it? Should we insist
it have to be a good one no matter what.
But the general feeling is they want a deal, they
want to avoid tipping into it even bigger trade conflict.
Speaker 1 (14:16):
And that's very much also the view that they're getting
from business in the EU.
Speaker 3 (14:20):
Yeah, let's see, of course how long maybe that lasts,
because the EU has been very careful not to antagonize
President Trump with retaliation so far. But let's see if
that is a strategy that continues or not. I also
want a quick word though, on what is going on
with Russia.
Speaker 2 (14:36):
The US president.
Speaker 3 (14:36):
Has threatened big tariffs on Russia up to one hundred
percent if it doesn't end hostilities with Ukraine. Now, will
that tactic work with Vladimir Putin.
Speaker 1 (14:46):
Was well, that is the question. Obviously.
Speaker 9 (14:49):
It's a signal of just how frustrated Donald Trump is
that there's no movement towards the sesfar in Ukraine, and
now very much training his sites.
Speaker 1 (14:56):
On Putin In.
Speaker 9 (14:57):
All of that, but the Russian economy is already very
heavily sanctioned, including by the US. It seems like it
was a bit unclear what Donald Trump was saying last night,
but it suggests that he's talking about perhaps further tariffs
on Russia goods and Russia doesn't export a lot to
the US, but primarily talking about secondary sanctions which would
panelize countries like.
Speaker 1 (15:18):
China and India for buying Russian energy.
Speaker 9 (15:21):
Of course, that they bought quite a lot in recent years,
and that's helped fund the war in Ukraine, and that
would be a design to squeeze the Russian economy further.
You'd have to say that with all this pressure that's
gone on, and Donald Trump's saying that he's talking with
Vladimir Putin all the time and Vladimir Putin wants a deal,
there's no great sign that Vladimir Putin wants a deal
on Ukraine, that he doesn't want to keep pressing on
(15:43):
with his war aims there regardless, and that's despite many
years of economic squeeze. With this change his course in Ukraine,
it's very hard to say would it hurt the Russian
economy further? Absolutely, but Vladimir Putin seems to be quite
willing to wear a lot of economic pain to further
his goals in Ukraine.
Speaker 4 (16:03):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 3 (16:09):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 4 (16:15):
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Speaker 3 (16:21):
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Speaker 2 (16:28):
I'm Caroline Hepka and.
Speaker 4 (16:30):
I'm Stephen Carroll. 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 (00:09):
This is the Blueberg Day BAC you at podcast. Good Morning.
Speaker 3 (00:12):
It's Tuesday, the fifteenth of July. I'm Caroline Hepkat in London.
Speaker 4 (00:15):
And I'm Stephen Caroline Brussels. Coming up today, the UK's Chancellor,
Rachel Reeves will face the city for her first major
speech since her tearful appearance in Parliament sparked a bond
market sell off.
Speaker 3 (00:27):
Nvidia gets the green light to resume certain AI chip
sales to China after a dramatic White House reversal.
Speaker 4 (00:35):
Plus targeting Boeing and Bourbon, the EU finalizes a new
Tara retaliation list hitting American goods worth eighty four billion
dollars if a trade deal can't be reached.
Speaker 2 (00:47):
Let's start with a roundup of our top stories.
Speaker 4 (00:49):
Britain's Chancellor, Rachel Reeves will pledge to cut red tape
in her annual speech to London's financial sector in a
bid to help drive the government's growth plans. Reeves is
expected to say that dial up risk will allow more
families access to mortgages. It'll be the Chancellor's first major
public speech since UK assets sold off less than two
weeks ago when she appeared visibly upset in Parliament, but
(01:12):
since then the city has grown increasingly wary of taxes.
Down the line Bloomberg James Wilcock has the.
Speaker 5 (01:17):
Story Chancellor Reeves's mansion house dinner could be mistaken for tapass.
There are many small plates on offer to the financial
sector at concierge servers for international investors, reforms to the
financial lombudsman and a new captive insurance regime, and the
city has been teased with hopes for a review of
ring fencing rules and possibly an entrepreneur's visa system. But
(01:41):
despite these tasty morsels around deregulation and growth, many in
the world of finance see the government's fiscal worries wonder
if the bill is going to be coming later in
the autumn budget in London James Orcock Bloomberg Radio.
Speaker 3 (01:55):
Well. The Chancellor's speech comes as the UK economy shows
more signs of rebounding from its recent slump. June's retail
sales figures rose by three point one percent from a
year earlier, according to data from the British Retail Consortium.
It's a positive signal after US tariffs, tax increases, and
a minimum wage hike drove back to back contractions in
(02:17):
retail sales in April and May, in.
Speaker 4 (02:20):
Vidios preparing to resume sales of high end AI chips
to China after getting the green light from the Trump administration.
The H twenty chip was designed specifically by Nvidia to
comply with earlier US trade restrictions, but has been banned
from sale in the country since April. In a blog post,
the tech giant says that US officials have now told
(02:40):
them they will approve export licenses. Gene Monster of Deep
Water Asset Management says the move comes after weeks of
thawing relations between Beijing and Washington.
Speaker 6 (02:51):
My suspicion is that some of the semi trade truth
I'm creating luckdin' given everything that's going on to call
it that, but that we have seen between the US
and China probably laid the groundwork a few weeks ago
that this in fact was going to happen with Nvidio.
And so what does it mean. What is the Trump
administration essentially saying is that they have to give something
(03:13):
to get something.
Speaker 4 (03:15):
Gene Monster adds the US reversal as a significant win
for Nvidia CEO jens and huang He had previously branded
Washington's chip curbs of failure that fueled the rise of
Huawei and other Chinese AI rivals.
Speaker 2 (03:29):
Some more data now.
Speaker 3 (03:30):
China's economy grew faster than expected in the second quarter.
GDP rose by five point two percent, after again a
five point four percent in the first three months of
the year. However, strong exports to markets outside the US
mass deepening pressure from weak domestic demand within China. Despite
a raft of government subsidies, excess manufacturing capacity and weak
(03:54):
confidence in the property sector continued to suppress Chinese consumption.
Speaker 4 (04:00):
US President Donald Trump has threatened to impose severe tariffs
on Russia if it does not end the war with Ukraine.
The news comes as the US pledges fresh weapons supplies
for Kiev, which Trump says will be paid for by
NATO member states. Speaking during a meeting with NATO's Secretary
General at the White House, Trump set out a timeline
for the Russian president.
Speaker 6 (04:20):
I'm disappointed in President Putin because I thought we would
have had a deal two months ago.
Speaker 1 (04:25):
But if it doesn't seem to get there, so.
Speaker 6 (04:28):
Based on that, we're going to be doing secondary tariffs.
Speaker 1 (04:31):
If we don't have a deal on fifty days. It's
very simple, and they'll be at one hundred percent.
Speaker 4 (04:36):
President Trump, speaking during a meeting With's Mark Rutta there
Matt Whitaker, the US ambassador to NATO, says the planned
action effectively represents secondary sanctions on countries that are buying
oil from Russia. The President didn't elaborate on the powers
he would use to impose those tariffs, but said he
wasn't sure if congressional approval would be needed.
Speaker 3 (04:55):
Bloomberg understands that the European Union has finalized a second
list of US US tariff countermeasures, targeting goods worth seventy
two billion euros. The list includes Boeing aircraft and bourbon,
as well as additional duties on machinery products, chemicals and plastics,
medical devices, wines, and other agricultural goods. Our Senior White
(05:16):
House correspondent josh Win Grove says Europe is a significant
market for President Trump.
Speaker 7 (05:23):
And the question is, of course, will they land somewhere
or will Trump look at wherever they are in a
week or two and think that that's either not enough
and stick with the thirty percent, or it is enough
and go to a lower number. Remember, of course, the
baseline number right now is ten percent. He initially announced
twenty percent on Europe in the initial Liberation Day tariffs.
He's threatened as high as fifty percent on Europe and
(05:45):
is always you know, that's been kind of one of
the top of the list places that he's complained about
when he talks about unfair trade relationships.
Speaker 3 (05:52):
Bloomberg's Josh Wingrove there on Trump's EU tariff plans. EU
member states still need to give their approval before the
European list is adopted. The measures are a response to
President Trump's earlier so called reciprocal tariff of twenty percent
hitting most goods, and the additional levies on cars and
car parts of twenty five percent. The universal rate was
(06:16):
later temporarily lowered to ten percent to allow negotiations to
take place.
Speaker 4 (06:22):
France's Prime Minister with Atlanta planned today to sharply narrow
the country's budget deficit. The move by Francois Bayrus sets
the stage for a parliamentary battle at risks triggering another
government collapse. Prime Minster will present details of around forty
billion euros and spending cuts and tax increases for next year.
The proposals are aimed at shrinking the Euro Area's largest
(06:42):
budget gap, as France's fiscal difficulties continue to rattle bond markets.
Earlier this month, the country's five year bond yield surpassed
Italy's for the first time in twenty years.
Speaker 3 (06:53):
And those are our top stories for you this morning.
So let's think about markets which are really focused on
the US inflation data. There are a number of other
countries reporting CPI, but the US is the most significant,
coming out at one thirty pm. Clues on the impact
of Trump tariffs in June and the direction of course
of interest rates. In terms of the market response, at
(07:14):
the moment, the MSCI Aged Pacificate Index has been swinging
between small gains.
Speaker 2 (07:18):
And losses, so a lot of hesitation.
Speaker 3 (07:20):
Japan's ten year government bond yields are climbing to its
highest level since two thousand and eight. You've also got
corporate earning season, though really taking whole jp Morgan Chase, Wells,
Fargo City and black Rock all due to report today
subdue their expectations, so do we see some big beats there?
And Bitcoin, we saw a surge above one hundred and
twenty thousand dollars on Monday. We are below that one
(07:41):
hundred and seventeen thousand this morning, so pretty incredible run
though for bitcoin over the course of this year is
something like twenty seven percent.
Speaker 2 (07:50):
Those are the markets.
Speaker 4 (07:52):
In a moment, we'll look ahead to tonight's imagine how
speech and the Chancellor. I'm bringing you the latest on
the UUs trade dispute with the story we've been reading
this morning now, Carla, it's been a long time since
I owned a car. Whatever to my rent one. I
am sort of mystified by the block of plastic that
I could handle the counter because keys are out, fobs
are in. Everyone else knows this except me like you,
(08:13):
who drives regularly. But apparently this is something that now
has become a key design feature of high end cars
as well.
Speaker 3 (08:20):
I love how this is described in Hannah Elliott's piece.
Speaker 2 (08:23):
It's like the handshake.
Speaker 3 (08:24):
You know, it gives you a little taste of what
the car design is all about. You know, get it
wrong and you can be severely punished by by drivers
as you say yes, I think if you see even
as the ultimate car free European city dweller.
Speaker 4 (08:39):
While Shelton's love cars, so you know, maybe maybe things
will change now that I'm in Brussels, you know, maybe
I'll be finally tempted back onto the roads. But I
like some of the designs in this piece of the
kind of the fancy fobs are incredible, Like there's a
Bentley one there, there's the Lotus pebble which is sort
of a triangle. You know, there's a lot of effort
now being put into designing what these things look like.
(09:00):
They're meant to be a reflected to the vehicle. They
don't always get it right. Hannah Elliott points at points
out as well and that there was a recent Cadillac
model that kind of didn't go down very well because
it was essentially just a plastic piece in a little
leather wallet. People didn't feel reflected the luxury of the car.
Speaker 3 (09:14):
And that probably the price tag as well. I mean, look,
even the keyfob though, might be going extinct because actually
loads of the high end cars just have apps.
Speaker 4 (09:22):
Now open it with your mind, Caroline, that's the next step.
I think you can read Hanna's piece on Blueberg Dot
comment on the terminal. We'll put a link to the
article in our show notes as well. But the Chancellor
rach To Reevees makes her annual speech to London's financial
industry later at Mansion House, a key moment for the
sector but also for the Chancellor for herself after the
recent market jitters over her future. Our financial porter Leo
(09:44):
kenscherper joins us now for more Leo, good morning. What
are the key announcements then we're expecting from the Chancellor?
Speaker 8 (09:50):
Good morning, Stephen.
Speaker 6 (09:51):
Yes.
Speaker 8 (09:52):
So ahead of Rachel reeves annual mention, how speech in
the city, the Chancellor will actually be in Leeds first
first off and reveal measures to increase home ownership, and
she will reveal I think you said earlier as well
a permanent mortgage guarantee scheme and also more home loans
for people on lower incomes. And then when she's in
the city tonight she is going to announce a, among
(10:15):
various other things, a concierge service for international investors who
want to put money into the UK, and that service
will sort of help them navigate issues around visas and regulation.
Another key measure that's hotly anticipated by many in the
city is cutting the burden of the senior managers and
certification regime, basically making it easier for financial institutions to
(10:39):
appoint senior managers and shortening the regulatory review from three
to two months. Those are some of the measures that
I expected tonight.
Speaker 3 (10:48):
Yeah, okay, so what are we expecting then? And might
we get any announcements on tax because that's the other
big worry.
Speaker 8 (10:58):
Yes, exactly, that's the big one. So our understanding is
to not expect any announcements on text, but any signaling
around wealth taxes non norm Texas. Potential backtracking here would
most likely be the biggest story out of the Dimensional
House speech. You know, when I was talking to people
in the city asking them what they expect tonight, they
(11:21):
they would always ask ask the question back, you know,
well what are you hearing about wealth Texas? You know,
that's definitely a big thorn in the side for many
people in the city. The Lord Mayor Alistair King, who
is hosting a dinner tonight, told us a few weeks
ago that the government really needs to stop the non
dom exodus and many expect the Treasury to act eventually,
but probably not today.
Speaker 4 (11:43):
How significant is this moment for Rachel Reeves after we
had that recent Guild market sellaff.
Speaker 8 (11:50):
Yeah, it's a good question. So it definitely is a
big moment for her. I'd say not necessarily for the
guild market, because they are on no physical mat just expected.
I was talking to Guild market participants and they're not
necessarily waiting with bated breath for what Rees is going
to say. But I think it's key for her to
(12:10):
maintain her support from people in the city, from executives.
She was off to a good start, you know, praised
by CEOs of asset managers for instance, for her growth agenda,
but the Nondum exodus and also relatively slow movement around
issues such as the reform of ISAs the individual savings
accounts that has definitely irritated some of her early supporters
(12:32):
in the city.
Speaker 2 (12:33):
Interesting.
Speaker 3 (12:34):
Yeah, So Rachel Vee is speaking tonight at the Mansion
House dinner, but also the Bank of Engan Governor Andrew
Bailey will be delivering his annual speech at that event too. Lea,
thank you so much for looking ahead to what's happening today,
our finance supporter, Leo kensherper.
Speaker 4 (12:48):
Now, the European Union has finalized a second list of
countermeasures targeting American goods worth seventy two billion euros if
it decides to retaliate as transatlantic trade tensions intensified. Still
hopeful the negotiate a deal to avoid the thirty percent
levy threatened by Donald Trump. Let's bring in our EMAIS
director Rosaland Matheson for more on this as well. First, Rods,
(13:10):
just on what we've been hearing from Donald Trump. He's
indicated he's open to more talks with the EU, but
is there any sign of actually any progress.
Speaker 9 (13:19):
Well, it does make it a bit harder when Donald
Trump says that his letters laying out tariffrets are actual deals,
because they're not.
Speaker 1 (13:26):
It's the US imposing a tariffrate.
Speaker 9 (13:28):
So that's the climate in which a lot of countries
are trying to negotiate or work out how to negotiate
with the US and the path forward. There's been lots
of rounds of talks between the EU and the US
there and more to come. Are The EU trade negotiator
Mara Tetkovich was due to talk last night with the
US Commerce Secretary how Latnik, so we'll see how that went.
(13:50):
He's also warned that while they have to prepare for
all outcomes, that this proposed duty, he's said, is quite
effectively prohibitive.
Speaker 1 (13:58):
For transatlantic trade. The preference is still for a deal.
I mean, it's wrangling between the EU.
Speaker 9 (14:03):
Some of the bigger states are saying, should we do
a deal for the sake of it? Should we insist
it have to be a good one no matter what.
But the general feeling is they want a deal, they
want to avoid tipping into it even bigger trade conflict.
Speaker 1 (14:16):
And that's very much also the view that they're getting
from business in the EU.
Speaker 3 (14:20):
Yeah, let's see, of course how long maybe that lasts,
because the EU has been very careful not to antagonize
President Trump with retaliation so far. But let's see if
that is a strategy that continues or not. I also
want a quick word though, on what is going on
with Russia.
Speaker 2 (14:36):
The US president.
Speaker 3 (14:36):
Has threatened big tariffs on Russia up to one hundred
percent if it doesn't end hostilities with Ukraine. Now, will
that tactic work with Vladimir Putin.
Speaker 1 (14:46):
Was well, that is the question. Obviously.
Speaker 9 (14:49):
It's a signal of just how frustrated Donald Trump is
that there's no movement towards the sesfar in Ukraine, and
now very much training his sites.
Speaker 1 (14:56):
On Putin In.
Speaker 9 (14:57):
All of that, but the Russian economy is already very
heavily sanctioned, including by the US. It seems like it
was a bit unclear what Donald Trump was saying last night,
but it suggests that he's talking about perhaps further tariffs
on Russia goods and Russia doesn't export a lot to
the US, but primarily talking about secondary sanctions which would
panelize countries like.
Speaker 1 (15:18):
China and India for buying Russian energy.
Speaker 9 (15:21):
Of course, that they bought quite a lot in recent years,
and that's helped fund the war in Ukraine, and that
would be a design to squeeze the Russian economy further.
You'd have to say that with all this pressure that's
gone on, and Donald Trump's saying that he's talking with
Vladimir Putin all the time and Vladimir Putin wants a deal,
there's no great sign that Vladimir Putin wants a deal
on Ukraine, that he doesn't want to keep pressing on
(15:43):
with his war aims there regardless, and that's despite many
years of economic squeeze. With this change his course in Ukraine,
it's very hard to say would it hurt the Russian
economy further? Absolutely, but Vladimir Putin seems to be quite
willing to wear a lot of economic pain to further
his goals in Ukraine.
Speaker 4 (16:03):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 3 (16:09):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 4 (16:15):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 3 (16:21):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (16:28):
I'm Caroline Hepka and.
Speaker 4 (16:30):
I'm Stephen Carroll. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg Daybreak Europe
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