August 1, 2025 • 21 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) President Donald Trump unveiled a slew of new tariffs that boosted the average US rate on goods from across the world, forging ahead with his turbulent effort to reshape international commerce.
(2) Copper traders are rushing to book up storage space in a bet that US President Donald Trump’s shock decision not to tariff the main traded form of the metal will prompt a wave of copper into warehouses on the London Metal Exchange.
(3) The Federal Reserve’s preferred measure of underlying inflation increased in June at one of the fastest paces this year while consumer spending barely rose, underscoring the dueling forces dividing policymakers over the path of interest rates.
(4) Tom Sosnoff, co-founder of tastytrade, trades options live in front of an audience, demonstrating how understanding options can enrich retail traders.
(5) Apple reported its fastest quarterly revenue growth in more than three years, easily topping Wall Street estimates, after demand picked up for the iPhone and products in China.
(6) Amazon dropped in late trading after projecting weaker-than-expected operating income and trailing the sales growth of its cloud rivals, leaving investors searching for signs that the company’s huge investments in artificial intelligence are paying off.
Podcast Conversation: Venture Capital’s Obsession With Podcasts Transforms Tech Media (2)
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Transcript
Episode Transcript
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Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Date Bag you at podcast. Good morning,
It's Friday, the first of August. I'm Caroline Hepgitt in London.
Speaker 3 (00:15):
And I'm Stephen Carroll.
Speaker 4 (00:16):
Coming up today, Donald Trump announces new tariff rates for
every country trading with the US as his deadline for
talks passes.
Speaker 2 (00:24):
Apple reports its fastest growth in three years, but tariffs
increase the company's cost of doing business.
Speaker 4 (00:30):
Plus trading from a theater seat. How an options trader
is turning finance into entertainment.
Speaker 2 (00:36):
Let's start with the roundup of our top stories.
Speaker 4 (00:38):
US President Donald Trump is stepping up his global trade offensive,
setting a ten percent minimum global tariff and higher rates
for countries which have trade surpluses with the United States.
The President signed an executive order to enact many of
the tariff rates he first announced in April, then delayed twice.
White House spokesperson Caroline Levitt says the pause has led
(00:58):
to America's key trading partners getting better rates.
Speaker 5 (01:02):
We promised that the President would negotiate with countries all
around the world to cut tailor made trade deals depending
on those countries' challenges.
Speaker 3 (01:11):
How badly.
Speaker 5 (01:11):
They've ripped off the United States of America and our
manufacturing industry in our work force in the past, and
he has done that. Of the our eighteen major trading partners,
two thirds of those trading partners have a.
Speaker 4 (01:24):
Deal Levita, speaking ahead of the midnight deadline, which passed
without the fanfare of Trump's April tariff rollout, the changes
will come into effect in one week's time. Imports from
around forty countries will face a higher fifteen percent rate,
and roughly a dozen economies products will be hit with
even higher duties. Switzerland is one of the worst affected
by the new measures, with the country facing a thirty
(01:46):
nine percent levy on its exports to the US. Major
industrialized economies, including the European Union, Japan, and South Korea,
accepted deals involving fifteen percent duties on their products well.
Speaker 2 (01:58):
The tariff ROLO also underlined how the US president is
using trade to pressure countries politically. Some of the major
shifts from April's rates are countries facing Donald Trump's aire.
India has been hit with a twenty five percent tariff
rate after attax over its membership of the Bricks Group
and before the midnight deadline. The US President was asked
(02:21):
about his social media post saying that Canada backing statehood
for Palestine would make it very hard for them to
get a US trade deal.
Speaker 3 (02:30):
That's your opinion. I didn't like that.
Speaker 6 (02:33):
Not a deal breaker, but we haven't spoken to Canada today.
Speaker 3 (02:36):
He's called and we'll we'll see.
Speaker 2 (02:40):
President Trump later and owa thirty five percent tariff rate
for Canadian imports not covered by the USMCA the current
trade agreement. Many countries are still hoping to negotiate better
deals with the US, with Mexico managing to get a
further ninety day extension to trade talks.
Speaker 4 (02:57):
Boomberg Economics forecast the new trade regime will cut US
GDP by one point eight percent and lift core prices
by one point one percent over.
Speaker 3 (03:05):
A period of two to three years.
Speaker 4 (03:08):
They say the full details of the new levees will
increase the average US tariff right to fifteen point two
percent when they take effect next week. That's up from
thirteen point three percent currently and two point three percent
last year. But economists have warned the further possible announcements
on new sectoral account secual tariffs, notably for pharmaceuticals, and
chips could substantially change their prediction.
Speaker 2 (03:31):
Traders are bracing for an influx of copper into warehouses
for the London Metal Exchange. President Trump's decision not to
tariff the main traded form of the metal has sparked
a race for LM storage space. It comes after trade
has had for months shipped copper to the US and
built up stockpiles to capture sharply higher prices. Here is
(03:53):
Bloomberg and can remain bostic on how the market was
caught off guard by the US tariff shock.
Speaker 6 (03:59):
The mark had actually tried to call the President's bluff.
They actually thought he was going to follow through with
most of those tariffs, but he's basically we sended a
couple of those and said that they won't apply to
finished products. And that is disrupting a big trade that
we had in this market, Joe, which was a lot
of folks trying to buy a lot of copper ahead
of those tariffs. That's what got built up over the
last few weeks that now in theory is going to
(04:20):
have to be built down because what folks bought in
theory is now going to be worth a little bit less.
Speaker 2 (04:25):
Bloomberg's remain bostic. Speaking there. On Wednesday, President Trump announced
that import tariffs of fifty percent would apply only to
process forms of copper, not to the refined metal. The
news collapsed New York prices in a matter of minutes.
Speaker 4 (04:39):
A key gage of US inflation increased in June at
one of the fastest paces of the year, while consumer
spending barely rose. The core personal consumption Expenditure index rose
by zero point three percent from May and two point
eight percent on an annual basis. Meanwhile, inflation adjusted consumer
spending just edged up last month after declining in May.
Leel Brainard's former direct of the National Economic Council, says,
(05:02):
the figures are concerning.
Speaker 7 (05:04):
We've already seen substantial slowing in the second quarter in
terms of underlying private domestic final demand. Consumers look like
they are feeling a little bit cautious. We can see
that even in today's personal consumption expenditures data, which really
(05:25):
was very modest growth. So yes, I do believe there's
some risk.
Speaker 4 (05:30):
Leah Bernard, speaking there, The third kept borrowing cast unchained
for a fifth straight meeting on Wednesday, though two governors
dissented in favor of a quarter point cut.
Speaker 2 (05:40):
Apple reported its fastest quarterly revenue growth in more than
three years, surpassing Wall Street estimates after demand picked up
for its iPhones and products in China. The tech giant
reported sales up by nine point three percent to ninety
four billion dollars in the third quarter, as CEO Tim
Cook hailed a quote acceleration of growth around the world.
(06:02):
Bloomberg's Mark German says that while US tariffs have increased
Apple's business costs, they've also had a positive impact on sales.
Speaker 8 (06:11):
Revenue growth of over one thousand percent in some stores
because people were flooding the stores to buy phones because
they thought the prices.
Speaker 3 (06:18):
Were going to shoot up.
Speaker 8 (06:19):
There were these completely baseless headlines on social media, seeing
the iPhone's going to cost three thousand dollars, the US
phone's going to cost one hundred thousand dollars. All these
complete nonsense headlines.
Speaker 3 (06:31):
That helped Apple out a lot.
Speaker 8 (06:33):
We'll see what this means in the quarters to come,
but at least for this June quarter, the proof is
in the pudding.
Speaker 2 (06:39):
Bloomberg's Mark German speaking there as Apple told analysts that
it's open to further acquisitions and looks to increase investments
in artificial intelligence.
Speaker 4 (06:49):
Meanwhile, Amazon shares fell by over six percent and after
hours trading after it projected weaker than expected operating income
and trailed the sales growth of its rivals and cloud services.
Operating profits in the period ending in September will be
between fifteen and a half and twenty and a half
billion dollars, compared with the average estimate of nineteen point
(07:10):
four billion dollars. Despite records capital expenditures this quarter, investors
are searching for signs that the tech giants huge investments
in AI are paying off.
Speaker 3 (07:20):
Bloomberg's Ed Ludlow has more.
Speaker 9 (07:22):
The vast majority of revenue that Amazon books and will
book in the current period comes from Amazon dot Com.
The AWS, which is the number one player in the
cloud market, makes up the vast majority of operating income,
and following in quick succession from Microsoft to Meta's Prints
just twenty four hours before, where they showed really demonstrable
(07:43):
growth based off AI motivated CAPEX investments, Amazon just didn't
have the same thing to show.
Speaker 4 (07:49):
Bloomberg's Ed Ludlow, speaking as Amazon CEO Andy Jasse, said
it was very early days in artificial intelligence and efforts
to lower the costs of running AI applications would draw
more customers over time.
Speaker 2 (08:01):
Now to the UK, where business leaders are feeling pessimistic
about the economy, according to new data in fact that
shows that current sentiment has fallen to even lower levels
than during the pandemic. Bloomberg's teabat at a Bio has more.
Speaker 10 (08:16):
During the coronavirus pandemic, the country shut down, experiencing multiple
periods of complete lockdown, but still British executives felt more
confident about the UK's economic prospects than they do now.
A new survey from the Institute of Directors showed their
measure of economic confidence plunged to minus seventy two in July.
(08:37):
That's worse and the minus sixty nine recorded in April
twenty twenty, after the UK first went into COVID lockdown.
That survey may concern Prime Minister Keir Starmer, whose Labour
government has put economic growth at the heart of its mission.
In London, t were at a Bio Bloomberg Radio.
Speaker 2 (08:56):
And those are our top stories for you this morning.
Looking at the markets, we see a global stock sell
off extend into a sixth day. You've got the MSCI
Asia Pacific Index down seven tenths of one percent, big
declines for South Korea, the Cospy down by three point
six percent this morning. You also have the Swiss frank
lower two tenths of one percent against the US dollar
(09:18):
around this thirty nine percent tariff rate that's still being
questioned by Switzerland itself. And then thinking about stock futures
for Europe again, we see a significant decline for European expectations.
So we're down by half of one percent. Tenure treasury
yields at four thirty eight flat ahead of the all
important monthly job data that we'll get out later today.
(09:39):
Those are the markets.
Speaker 4 (09:40):
In a moment, we'll bring you more on the latest
trade announcements from Donald Trump. Plus, we have a great
story about the live shows selling complex investment strategies to
retail traders. No story that we've been reading this morning
about venture capitalists and therefore into podcasts, which has become
sort of its own media industry.
Speaker 2 (09:59):
Yeah, has become something of a mini empire. Actually, Blimbergs
and vander May has been writing about this. A media
ecosystem that serves the tech world. It's podcasts, it's also newsletters,
streaming shows, so twenty VC Sorcery tb PN, the Dwarkish podcast.
They kind of sprang up during the pandemic, of course.
(10:22):
But now you know some of those podcasts apparently according
to I haven't listened to all of them, but and
clearly has says that some of them are genuinely illuminating,
others are pretty boring and sycophantic. But this has actually
become a real source of information for the tech sector.
Speaker 1 (10:39):
Yeah.
Speaker 4 (10:39):
I mean, look, it's an ecosystem that is developing in
some places but has attracted particularly large audiences in the
tech sector as well. They're very long as well. I
mean the TTM is three hours a day, wow done live.
The development of this, of course is interesting because there
is does appear to be the philosophy that a tech
gets more powerful the insider gasp. As what's attracting people
(11:01):
to these industries as well. I mean, obviously, you know
the number of my friends that love to joke that
I'm just another man with a podcast sort of sort
of plays into the trope that this is a lot
of very male dominated conversations as well in this space too.
But it's a very interesting deep dive into I suppose
how this is evolving and undattracting audience.
Speaker 2 (11:22):
Yeah, it absolutely is attracting audiences. But of course it
doesn't and and points this out too, it doesn't have
kind of in depth reporting. These are chats and conversations,
so as you say, it's kind of inside a gossip.
But yes, they do seem to be really taking off
people who are investing in them too. Within the tech world.
They've sort of become their own tech businesses. So yeah,
quite interesting.
Speaker 4 (11:42):
You can read moreph Man vander Maray on that. We'll
put the link to the article in our podcast show notes.
Let's bring you more though on the trade news this morning,
Donald Trump announcing his reciprocal tariff rates which start at
ten percent, but of some unpleasant surprises for the likes
of Switzerland and Canada. Our trades are brand and Murray
is with us for more so, Brandon. It is the
first of August, the date that Donald Trump had promised
(12:04):
us was the end of trade talks, and these announcements
coinciding with that ten percent baseline. More for some what
are the big changes in this announcement?
Speaker 3 (12:14):
Yeah, so this is.
Speaker 11 (12:15):
Really the beginning of the end of the global trading system,
as we've known it for the past couple of decades.
The President Trade Representative Jamison Greer said that this is
going to accomplish what the World Trade Organization hasn't been
able to accomplish for thirty years, and that is to
expand access to markets for US exporters, to increased tariffs,
(12:37):
to defend critical American industries, and to create manufacturing jobs
through investments that these countries, some of them already have
made in American businesses. So what we're there's a lot
of moving pieces here. There are some negotiations that are
still going to play out. You mentioned Switzerland. Switzerland thought
(13:00):
it had a deal on the President's table UH and
and and they obviously didn't get that over the over
the line by today. So they're gonna they're gonna they're
gonna face this, this thirty nine percent tariff. I they
can't figure something out between now and the time they
take effect on August seventh, So UH and Taiwan, I
(13:20):
believe also thought it had a deal and and and
wasn't able to and it's and it's getting handed its
tariff rate UH in this directive from the President as well.
So there there are lots of talks This isn't the
end of this, This is sort of the beginning in
many ways. There are lots of talks that still need
to play out. Even for those countries that think they
they signed a deal, there are details still to be
(13:40):
worked out. Uh, And this is gonna be a tumultuous
time for the global economy. Can you imagine being uh,
you know, in the back office of a of a
major importer right now trying to figure out the paperwork
for all this. It's gonna it's gonna cause a lot
of a lot of headaches and a lot of extra costs.
Speaker 2 (13:58):
Yeah, I'm still quite a lot of this belief. Is
this the US abandoning kind of open trade for good
or not? And there are still lots of details that
we don't know, like the rate for China isn't on
the list, and there are also the sectoral tariffs. What
do you think is the most important thing to watch
out for next in terms of detail as we try
(14:18):
to absorb all of this.
Speaker 11 (14:20):
Well, definitely, the China truce that expires on August twelfth
is something that is hanging out there. Will that be extended?
The President was supposed to be briefed by his Treasury
Secretary and Trade representative this week. We don't think that
that briefing has taken place. President was supposed to make
(14:40):
a decision on whether to extend that and all indications
are that he will, but he hasn't yet. So it's
just another uncertainty hanging over the global economy. And of course,
you know US and China are huge trading partners and
there's a lot of there's a lot of state for
that to remain a stable situation late back to where
(15:00):
they were just a couple of months ago with one
hundred and forty five US tariffs on Chinese imports. So
the other big thing to look out for here is
whether countries will retaliate in any sort of way, whether
directly or indirectly. It's it's it's it's quite interesting that
these tariffs are being handed down and countries don't hit
(15:24):
back in any way. But there are other ways to
do it other than just direct directly put tit for
tat tariffs on the US. There they can try to
diversify their own trading it flows to outside the US
market if that's possible, And it's it's we're in for
some interesting times here for in the global trading system.
Speaker 4 (15:45):
Yeah, we certainly are Brendon and just looking at the
latest reactions from the Swiss government saying the thirty nine
percent tariffs differ significantly from a draft and they're still
seeking a negotiated solution with the US on trade. Taiwan
meanwhile calling the twenty percent tariff that they've been handled
temporary and saying they're striving for a more reasonable rate
in the future as well, So perhaps some more space
(16:07):
for talks before those new tariffs come into for us
in a week's time. For now, our trades are Brandan Murray,
thank you.
Speaker 2 (16:13):
Well, it's finance as entertainment. Maybe that's a theme of
the podcast this morning. Sixty hate year old Tom Sozanov,
the founder of Think or Swim and Tasty Trade, packed
out a London theater recently to teach complex trading strategies
that were once reserved for Wall Street pros to retail investors.
Joining us now to discuss This is Bloomberg's Markets reporter
(16:35):
Justina Lee. Justina, good morning, So financial entertainment. What is
Soznov's teaching? I mean you were at the theater show.
What was it like?
Speaker 1 (16:43):
It's a bit like a stand up comedy, but maybe
with fewer jokes and a lot more you know, discussion
about all these complicated option strategies. And I think what's
kind of really interesting about this company that he co
found did, Tasty Trade, which is retail brokerage and also
a financial entertainment network, is that they're not just about
(17:07):
kind of buying options.
Speaker 3 (17:09):
I think we're used to that.
Speaker 1 (17:10):
They're mostly about selling options, and they're about these complicated strategies,
you know, short iron corn door, short strangles, which are
usually like selling options and maybe buying some at the
same time, selling two options at the same time, and
they're all about how kind of if you do this steadily,
you'll kind of make kind of these premiums from selling options,
(17:34):
a bit like if you're selling insurance, and then you
kind of.
Speaker 3 (17:37):
Get rich this way.
Speaker 1 (17:38):
And so it's kind of interesting because it's a combination
of entertainment and also really dry technical language. And that
is exactly how Tomsaustuff kind of envisioned his company to be.
Speaker 4 (17:52):
Why is he attracting such audiences at this moment?
Speaker 3 (17:56):
Why are this Why is this kind of trading I
suppose becoming so popular now?
Speaker 1 (18:02):
Yeah, I think he kind of really captures this moment
in the retail options trading boom, I mean US options
trading volume. And it's also interesting because this was in London,
but everyone was trading US options there. I mean, the
volumes have really reached a record and I think it's
interesting because we used to think, okay, people were trading
(18:22):
options during COVID when they were bored, but actually the
volume has picked up even further since COVID, and it's
just hitting new records every year, and I think, you know,
they're not even among the biggest, biggest options trading brokerage.
And even then, he attracted this big crowd in London
and a lot of people there actually flew in here
(18:44):
just to see him, and it kind of when I
spoke to them, I think a lot of them like
that he seems to be teaching something that's a little
bit cleverer than what I don't know, they might learn
from Robinhood or something. And there's definitely kind of aspirations
for kind of being to do this full time and
kind of quit their jobs and kind of just just
(19:04):
make a living from trading options.
Speaker 2 (19:07):
Okay, but what are the risks And some of the
criticism around this. I mean, there is a difference between
I suppose, you know, Wall Streets and big banks and
trading their versus trying to do it in your basement.
Speaker 3 (19:21):
Yeah, for sure.
Speaker 1 (19:22):
And I think you know, we have all heard that
as a retail investor, you know, including us, we should
all just hold a buy and hold index funds. And
that is something that Tom Saw's not definitely does not
agree with. He thinks, actually his company recently had an
article that called this anti intellectual. And I think even
(19:42):
you know, a lot of Wall Street pros would say
selling options is something that is quite dangerous. It's a
strategy that has kind of burned a lot of pros.
And to kind of teach this these complicated tactics to
retail pros, sorry to retail investors, I think a lot
of people would say, it's not really just about them.
(20:03):
It's kind of about generating commissions for the brokerage, because
the more complicated these trades are kind of the more
activity you get. And of course for each trade, you know,
tasty trade does earn a commission, and then they also
sell the flows to market makers. And so I think
a lot of cynics would say that this is really
just a commission maximization strategy.
Speaker 4 (20:25):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:31):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 4 (20:37):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (20:43):
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Speaker 3 (20:51):
I'm Caroline Hitka and I'm Stephen Carroll.
Speaker 4 (20:53):
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 (00:09):
This is the Bloomberg Date Bag you at podcast. Good morning,
It's Friday, the first of August. I'm Caroline Hepgitt in London.
Speaker 3 (00:15):
And I'm Stephen Carroll.
Speaker 4 (00:16):
Coming up today, Donald Trump announces new tariff rates for
every country trading with the US as his deadline for
talks passes.
Speaker 2 (00:24):
Apple reports its fastest growth in three years, but tariffs
increase the company's cost of doing business.
Speaker 4 (00:30):
Plus trading from a theater seat. How an options trader
is turning finance into entertainment.
Speaker 2 (00:36):
Let's start with the roundup of our top stories.
Speaker 4 (00:38):
US President Donald Trump is stepping up his global trade offensive,
setting a ten percent minimum global tariff and higher rates
for countries which have trade surpluses with the United States.
The President signed an executive order to enact many of
the tariff rates he first announced in April, then delayed twice.
White House spokesperson Caroline Levitt says the pause has led
(00:58):
to America's key trading partners getting better rates.
Speaker 5 (01:02):
We promised that the President would negotiate with countries all
around the world to cut tailor made trade deals depending
on those countries' challenges.
Speaker 3 (01:11):
How badly.
Speaker 5 (01:11):
They've ripped off the United States of America and our
manufacturing industry in our work force in the past, and
he has done that. Of the our eighteen major trading partners,
two thirds of those trading partners have a.
Speaker 4 (01:24):
Deal Levita, speaking ahead of the midnight deadline, which passed
without the fanfare of Trump's April tariff rollout, the changes
will come into effect in one week's time. Imports from
around forty countries will face a higher fifteen percent rate,
and roughly a dozen economies products will be hit with
even higher duties. Switzerland is one of the worst affected
by the new measures, with the country facing a thirty
(01:46):
nine percent levy on its exports to the US. Major
industrialized economies, including the European Union, Japan, and South Korea,
accepted deals involving fifteen percent duties on their products well.
Speaker 2 (01:58):
The tariff ROLO also underlined how the US president is
using trade to pressure countries politically. Some of the major
shifts from April's rates are countries facing Donald Trump's aire.
India has been hit with a twenty five percent tariff
rate after attax over its membership of the Bricks Group
and before the midnight deadline. The US President was asked
(02:21):
about his social media post saying that Canada backing statehood
for Palestine would make it very hard for them to
get a US trade deal.
Speaker 3 (02:30):
That's your opinion. I didn't like that.
Speaker 6 (02:33):
Not a deal breaker, but we haven't spoken to Canada today.
Speaker 3 (02:36):
He's called and we'll we'll see.
Speaker 2 (02:40):
President Trump later and owa thirty five percent tariff rate
for Canadian imports not covered by the USMCA the current
trade agreement. Many countries are still hoping to negotiate better
deals with the US, with Mexico managing to get a
further ninety day extension to trade talks.
Speaker 4 (02:57):
Boomberg Economics forecast the new trade regime will cut US
GDP by one point eight percent and lift core prices
by one point one percent over.
Speaker 3 (03:05):
A period of two to three years.
Speaker 4 (03:08):
They say the full details of the new levees will
increase the average US tariff right to fifteen point two
percent when they take effect next week. That's up from
thirteen point three percent currently and two point three percent
last year. But economists have warned the further possible announcements
on new sectoral account secual tariffs, notably for pharmaceuticals, and
chips could substantially change their prediction.
Speaker 2 (03:31):
Traders are bracing for an influx of copper into warehouses
for the London Metal Exchange. President Trump's decision not to
tariff the main traded form of the metal has sparked
a race for LM storage space. It comes after trade
has had for months shipped copper to the US and
built up stockpiles to capture sharply higher prices. Here is
(03:53):
Bloomberg and can remain bostic on how the market was
caught off guard by the US tariff shock.
Speaker 6 (03:59):
The mark had actually tried to call the President's bluff.
They actually thought he was going to follow through with
most of those tariffs, but he's basically we sended a
couple of those and said that they won't apply to
finished products. And that is disrupting a big trade that
we had in this market, Joe, which was a lot
of folks trying to buy a lot of copper ahead
of those tariffs. That's what got built up over the
last few weeks that now in theory is going to
(04:20):
have to be built down because what folks bought in
theory is now going to be worth a little bit less.
Speaker 2 (04:25):
Bloomberg's remain bostic. Speaking there. On Wednesday, President Trump announced
that import tariffs of fifty percent would apply only to
process forms of copper, not to the refined metal. The
news collapsed New York prices in a matter of minutes.
Speaker 4 (04:39):
A key gage of US inflation increased in June at
one of the fastest paces of the year, while consumer
spending barely rose. The core personal consumption Expenditure index rose
by zero point three percent from May and two point
eight percent on an annual basis. Meanwhile, inflation adjusted consumer
spending just edged up last month after declining in May.
Leel Brainard's former direct of the National Economic Council, says,
(05:02):
the figures are concerning.
Speaker 7 (05:04):
We've already seen substantial slowing in the second quarter in
terms of underlying private domestic final demand. Consumers look like
they are feeling a little bit cautious. We can see
that even in today's personal consumption expenditures data, which really
(05:25):
was very modest growth. So yes, I do believe there's
some risk.
Speaker 4 (05:30):
Leah Bernard, speaking there, The third kept borrowing cast unchained
for a fifth straight meeting on Wednesday, though two governors
dissented in favor of a quarter point cut.
Speaker 2 (05:40):
Apple reported its fastest quarterly revenue growth in more than
three years, surpassing Wall Street estimates after demand picked up
for its iPhones and products in China. The tech giant
reported sales up by nine point three percent to ninety
four billion dollars in the third quarter, as CEO Tim
Cook hailed a quote acceleration of growth around the world.
(06:02):
Bloomberg's Mark German says that while US tariffs have increased
Apple's business costs, they've also had a positive impact on sales.
Speaker 8 (06:11):
Revenue growth of over one thousand percent in some stores
because people were flooding the stores to buy phones because
they thought the prices.
Speaker 3 (06:18):
Were going to shoot up.
Speaker 8 (06:19):
There were these completely baseless headlines on social media, seeing
the iPhone's going to cost three thousand dollars, the US
phone's going to cost one hundred thousand dollars. All these
complete nonsense headlines.
Speaker 3 (06:31):
That helped Apple out a lot.
Speaker 8 (06:33):
We'll see what this means in the quarters to come,
but at least for this June quarter, the proof is
in the pudding.
Speaker 2 (06:39):
Bloomberg's Mark German speaking there as Apple told analysts that
it's open to further acquisitions and looks to increase investments
in artificial intelligence.
Speaker 4 (06:49):
Meanwhile, Amazon shares fell by over six percent and after
hours trading after it projected weaker than expected operating income
and trailed the sales growth of its rivals and cloud services.
Operating profits in the period ending in September will be
between fifteen and a half and twenty and a half
billion dollars, compared with the average estimate of nineteen point
(07:10):
four billion dollars. Despite records capital expenditures this quarter, investors
are searching for signs that the tech giants huge investments
in AI are paying off.
Speaker 3 (07:20):
Bloomberg's Ed Ludlow has more.
Speaker 9 (07:22):
The vast majority of revenue that Amazon books and will
book in the current period comes from Amazon dot Com.
The AWS, which is the number one player in the
cloud market, makes up the vast majority of operating income,
and following in quick succession from Microsoft to Meta's Prints
just twenty four hours before, where they showed really demonstrable
(07:43):
growth based off AI motivated CAPEX investments, Amazon just didn't
have the same thing to show.
Speaker 4 (07:49):
Bloomberg's Ed Ludlow, speaking as Amazon CEO Andy Jasse, said
it was very early days in artificial intelligence and efforts
to lower the costs of running AI applications would draw
more customers over time.
Speaker 2 (08:01):
Now to the UK, where business leaders are feeling pessimistic
about the economy, according to new data in fact that
shows that current sentiment has fallen to even lower levels
than during the pandemic. Bloomberg's teabat at a Bio has more.
Speaker 10 (08:16):
During the coronavirus pandemic, the country shut down, experiencing multiple
periods of complete lockdown, but still British executives felt more
confident about the UK's economic prospects than they do now.
A new survey from the Institute of Directors showed their
measure of economic confidence plunged to minus seventy two in July.
(08:37):
That's worse and the minus sixty nine recorded in April
twenty twenty, after the UK first went into COVID lockdown.
That survey may concern Prime Minister Keir Starmer, whose Labour
government has put economic growth at the heart of its mission.
In London, t were at a Bio Bloomberg Radio.
Speaker 2 (08:56):
And those are our top stories for you this morning.
Looking at the markets, we see a global stock sell
off extend into a sixth day. You've got the MSCI
Asia Pacific Index down seven tenths of one percent, big
declines for South Korea, the Cospy down by three point
six percent this morning. You also have the Swiss frank
lower two tenths of one percent against the US dollar
(09:18):
around this thirty nine percent tariff rate that's still being
questioned by Switzerland itself. And then thinking about stock futures
for Europe again, we see a significant decline for European expectations.
So we're down by half of one percent. Tenure treasury
yields at four thirty eight flat ahead of the all
important monthly job data that we'll get out later today.
(09:39):
Those are the markets.
Speaker 4 (09:40):
In a moment, we'll bring you more on the latest
trade announcements from Donald Trump. Plus, we have a great
story about the live shows selling complex investment strategies to
retail traders. No story that we've been reading this morning
about venture capitalists and therefore into podcasts, which has become
sort of its own media industry.
Speaker 2 (09:59):
Yeah, has become something of a mini empire. Actually, Blimbergs
and vander May has been writing about this. A media
ecosystem that serves the tech world. It's podcasts, it's also newsletters,
streaming shows, so twenty VC Sorcery tb PN, the Dwarkish podcast.
They kind of sprang up during the pandemic, of course.
(10:22):
But now you know some of those podcasts apparently according
to I haven't listened to all of them, but and
clearly has says that some of them are genuinely illuminating,
others are pretty boring and sycophantic. But this has actually
become a real source of information for the tech sector.
Speaker 1 (10:39):
Yeah.
Speaker 4 (10:39):
I mean, look, it's an ecosystem that is developing in
some places but has attracted particularly large audiences in the
tech sector as well. They're very long as well. I
mean the TTM is three hours a day, wow done live.
The development of this, of course is interesting because there
is does appear to be the philosophy that a tech
gets more powerful the insider gasp. As what's attracting people
(11:01):
to these industries as well. I mean, obviously, you know
the number of my friends that love to joke that
I'm just another man with a podcast sort of sort
of plays into the trope that this is a lot
of very male dominated conversations as well in this space too.
But it's a very interesting deep dive into I suppose
how this is evolving and undattracting audience.
Speaker 2 (11:22):
Yeah, it absolutely is attracting audiences. But of course it
doesn't and and points this out too, it doesn't have
kind of in depth reporting. These are chats and conversations,
so as you say, it's kind of inside a gossip.
But yes, they do seem to be really taking off
people who are investing in them too. Within the tech world.
They've sort of become their own tech businesses. So yeah,
quite interesting.
Speaker 4 (11:42):
You can read moreph Man vander Maray on that. We'll
put the link to the article in our podcast show notes.
Let's bring you more though on the trade news this morning,
Donald Trump announcing his reciprocal tariff rates which start at
ten percent, but of some unpleasant surprises for the likes
of Switzerland and Canada. Our trades are brand and Murray
is with us for more so, Brandon. It is the
first of August, the date that Donald Trump had promised
(12:04):
us was the end of trade talks, and these announcements
coinciding with that ten percent baseline. More for some what
are the big changes in this announcement?
Speaker 3 (12:14):
Yeah, so this is.
Speaker 11 (12:15):
Really the beginning of the end of the global trading system,
as we've known it for the past couple of decades.
The President Trade Representative Jamison Greer said that this is
going to accomplish what the World Trade Organization hasn't been
able to accomplish for thirty years, and that is to
expand access to markets for US exporters, to increased tariffs,
(12:37):
to defend critical American industries, and to create manufacturing jobs
through investments that these countries, some of them already have
made in American businesses. So what we're there's a lot
of moving pieces here. There are some negotiations that are
still going to play out. You mentioned Switzerland. Switzerland thought
(13:00):
it had a deal on the President's table UH and
and and they obviously didn't get that over the over
the line by today. So they're gonna they're gonna they're
gonna face this, this thirty nine percent tariff. I they
can't figure something out between now and the time they
take effect on August seventh, So UH and Taiwan, I
(13:20):
believe also thought it had a deal and and and
wasn't able to and it's and it's getting handed its
tariff rate UH in this directive from the President as well.
So there there are lots of talks This isn't the
end of this, This is sort of the beginning in
many ways. There are lots of talks that still need
to play out. Even for those countries that think they
they signed a deal, there are details still to be
(13:40):
worked out. Uh, And this is gonna be a tumultuous
time for the global economy. Can you imagine being uh,
you know, in the back office of a of a
major importer right now trying to figure out the paperwork
for all this. It's gonna it's gonna cause a lot
of a lot of headaches and a lot of extra costs.
Speaker 2 (13:58):
Yeah, I'm still quite a lot of this belief. Is
this the US abandoning kind of open trade for good
or not? And there are still lots of details that
we don't know, like the rate for China isn't on
the list, and there are also the sectoral tariffs. What
do you think is the most important thing to watch
out for next in terms of detail as we try
(14:18):
to absorb all of this.
Speaker 11 (14:20):
Well, definitely, the China truce that expires on August twelfth
is something that is hanging out there. Will that be extended?
The President was supposed to be briefed by his Treasury
Secretary and Trade representative this week. We don't think that
that briefing has taken place. President was supposed to make
(14:40):
a decision on whether to extend that and all indications
are that he will, but he hasn't yet. So it's
just another uncertainty hanging over the global economy. And of course,
you know US and China are huge trading partners and
there's a lot of there's a lot of state for
that to remain a stable situation late back to where
(15:00):
they were just a couple of months ago with one
hundred and forty five US tariffs on Chinese imports. So
the other big thing to look out for here is
whether countries will retaliate in any sort of way, whether
directly or indirectly. It's it's it's it's quite interesting that
these tariffs are being handed down and countries don't hit
(15:24):
back in any way. But there are other ways to
do it other than just direct directly put tit for
tat tariffs on the US. There they can try to
diversify their own trading it flows to outside the US
market if that's possible, And it's it's we're in for
some interesting times here for in the global trading system.
Speaker 4 (15:45):
Yeah, we certainly are Brendon and just looking at the
latest reactions from the Swiss government saying the thirty nine
percent tariffs differ significantly from a draft and they're still
seeking a negotiated solution with the US on trade. Taiwan
meanwhile calling the twenty percent tariff that they've been handled
temporary and saying they're striving for a more reasonable rate
in the future as well, So perhaps some more space
(16:07):
for talks before those new tariffs come into for us
in a week's time. For now, our trades are Brandan Murray,
thank you.
Speaker 2 (16:13):
Well, it's finance as entertainment. Maybe that's a theme of
the podcast this morning. Sixty hate year old Tom Sozanov,
the founder of Think or Swim and Tasty Trade, packed
out a London theater recently to teach complex trading strategies
that were once reserved for Wall Street pros to retail investors.
Joining us now to discuss This is Bloomberg's Markets reporter
(16:35):
Justina Lee. Justina, good morning, So financial entertainment. What is
Soznov's teaching? I mean you were at the theater show.
What was it like?
Speaker 1 (16:43):
It's a bit like a stand up comedy, but maybe
with fewer jokes and a lot more you know, discussion
about all these complicated option strategies. And I think what's
kind of really interesting about this company that he co
found did, Tasty Trade, which is retail brokerage and also
a financial entertainment network, is that they're not just about
(17:07):
kind of buying options.
Speaker 3 (17:09):
I think we're used to that.
Speaker 1 (17:10):
They're mostly about selling options, and they're about these complicated strategies,
you know, short iron corn door, short strangles, which are
usually like selling options and maybe buying some at the
same time, selling two options at the same time, and
they're all about how kind of if you do this steadily,
you'll kind of make kind of these premiums from selling options,
(17:34):
a bit like if you're selling insurance, and then you
kind of.
Speaker 3 (17:37):
Get rich this way.
Speaker 1 (17:38):
And so it's kind of interesting because it's a combination
of entertainment and also really dry technical language. And that
is exactly how Tomsaustuff kind of envisioned his company to be.
Speaker 4 (17:52):
Why is he attracting such audiences at this moment?
Speaker 3 (17:56):
Why are this Why is this kind of trading I
suppose becoming so popular now?
Speaker 1 (18:02):
Yeah, I think he kind of really captures this moment
in the retail options trading boom, I mean US options
trading volume. And it's also interesting because this was in London,
but everyone was trading US options there. I mean, the
volumes have really reached a record and I think it's
interesting because we used to think, okay, people were trading
(18:22):
options during COVID when they were bored, but actually the
volume has picked up even further since COVID, and it's
just hitting new records every year, and I think, you know,
they're not even among the biggest, biggest options trading brokerage.
And even then, he attracted this big crowd in London
and a lot of people there actually flew in here
(18:44):
just to see him, and it kind of when I
spoke to them, I think a lot of them like
that he seems to be teaching something that's a little
bit cleverer than what I don't know, they might learn
from Robinhood or something. And there's definitely kind of aspirations
for kind of being to do this full time and
kind of quit their jobs and kind of just just
(19:04):
make a living from trading options.
Speaker 2 (19:07):
Okay, but what are the risks And some of the
criticism around this. I mean, there is a difference between
I suppose, you know, Wall Streets and big banks and
trading their versus trying to do it in your basement.
Speaker 3 (19:21):
Yeah, for sure.
Speaker 1 (19:22):
And I think you know, we have all heard that
as a retail investor, you know, including us, we should
all just hold a buy and hold index funds. And
that is something that Tom Saw's not definitely does not
agree with. He thinks, actually his company recently had an
article that called this anti intellectual. And I think even
(19:42):
you know, a lot of Wall Street pros would say
selling options is something that is quite dangerous. It's a
strategy that has kind of burned a lot of pros.
And to kind of teach this these complicated tactics to
retail pros, sorry to retail investors, I think a lot
of people would say, it's not really just about them.
(20:03):
It's kind of about generating commissions for the brokerage, because
the more complicated these trades are kind of the more
activity you get. And of course for each trade, you know,
tasty trade does earn a commission, and then they also
sell the flows to market makers. And so I think
a lot of cynics would say that this is really
just a commission maximization strategy.
Speaker 4 (20:25):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:31):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 4 (20:37):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:43):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 3 (20:51):
I'm Caroline Hitka and I'm Stephen Carroll.
Speaker 4 (20:53):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
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