June 5, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) President Donald Trump signed a proclamation that bans individuals from 12 countries from entering the US, reinstating one of the most controversial measures from his first term after an attack in Colorado that targeted an event supporting Israeli hostages.
(2) Elon Musk is on a mission to block President Donald Trump’s tax bill after he tried — and failed — to convince Republican lawmakers to preserve valuable tax credits for electric vehicles in the legislation, according to a person familiar with the matter.
(3) Donald Trump on Wednesday broadcast Vladimir Putin’s warning that he’ll retaliate against Ukraine for its recent stunning drone strikes deep inside Russian territory, the clearest signal yet that the US president’s peace efforts have stalled.
(4) Some of the world’s biggest banks are pushing UK regulators to accelerate plans to ease rules around deferred bonuses so the new regime can be applied to payouts for 2025, according to people familiar with the matter.
(5) The Trump administration’s attack on US diversity, equity and inclusion policies is reverberating across the Atlantic, with corporations abandoning sponsorships of Britain’s Pride festivals, threatening key funding for events this summer.
Podcast Conversation: Deliveroo Launches Drone Food Delivery Service in Dublin
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Episode Transcript
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Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Blueberg Day ba Q podcast, available every
morning on Apple, Spotify or wherever you listen. It's Thursday,
the fifth of June in London. I'm Caroline Hepcare and.
Speaker 3 (00:18):
I'm Stephen Carroll. Coming up today, Donald Trump signs a
travel band that blocks people from twelve countries from entering
the United States.
Speaker 2 (00:27):
The European Central Bank is on track to cut interest
rates for an eighth time as trade tensions weigh on
economic growth.
Speaker 3 (00:34):
Plus targeting Germany's week spat as Friedrich Martz heads to
the White House, Europe's biggest economy looks uniquely vulnerable to
US trade policy.
Speaker 4 (00:43):
Let's start with a roundup of our top stories.
Speaker 3 (00:46):
US President Donald Trump has signed a travel band targeting
twelve countries, including Afghanistan, Myanmar, and Chad. The measure also
partially restricts entry from a host of other nations, including
Cuba and Venezuela. It reinstates one of the most controversial
policies from Donald Trump's first term. In a video posted online,
the US President claimed the move was necessary for national security,
(01:08):
citing the recent attack on an event in support of
Israeli hostages.
Speaker 5 (01:13):
A recent terror attack in Boulder, Colorado has underscored the
extreme dangers posed to our country by the entry of
foreign nationals who are not properly vetted.
Speaker 6 (01:23):
We don't want them.
Speaker 3 (01:25):
Trump's comments follow earlier remarks blaming the immigration policies of
former President Joe Biden for the suspect's presence in the US. However,
Mohammed Solomon is an Egyptian national who overstayed his visa
and would not have been affected by the proposed ban.
The President separately signed a proclamation suspending visas for foreign
students seeking to participate in exchange programs at Harvard University.
Speaker 2 (01:49):
Now, Elon Musk has rashed up his offensive against President
Trump's signature tax bill. Musk took to social media to
urge Americans to contact makers to kill the legislation, citing
it two point four trillion dollar price tag. However, Blueberg
understands that the Tesla CEO only came out against the
(02:11):
bill after failing to convince Republicans to preserve tax credits
for electric vehicles. Democratic Senator Chuck Schumer says that what
the former White House advisor says matters.
Speaker 4 (02:23):
On the other side of the aisle.
Speaker 7 (02:25):
He's not my cup of tea, to put it mildly,
but Republicans are already listening to them. They're already listening
to them. You've heard some of the right wing groups
uplift Elon Musk against Donald.
Speaker 4 (02:36):
Trump Bynority Senate leader Chuck Schumer.
Speaker 2 (02:38):
They're speaking as The non partisan US Congressional Budget Office
projected that President Trump's tariffs could generate more federal revenue
than would be lost through his tax cut plan. The
CBO estimates that the tariffs could shrink the budget gap
by two point eight trillion dollars over a decade. However,
that calculation assumed tariffs remain at high levels for the
(03:02):
entire ten year period.
Speaker 3 (03:04):
Donald Trump says Russias Latimir Putin warns that he will
retaliate for a recent Ukrainian drone strike. The outcome from
a call between the two leaders is the latest sign
that US efforts to bring about peace have stalled for more.
Commanding General of the US Army in Europe, Ben Hodges
was extremely critical of Trump's social media post.
Speaker 8 (03:25):
This embarrassing truth social post confirms for anybody that still
was wondering that the Trump administration has zero interest in
doing anything to put pressure on Russia to help Ukraine
or to get to some kind of sustainable peace. I
mean it was too hard for him. Their approach was
doomed to failure from the very beginning.
Speaker 3 (03:47):
Ben Hodges, speaking there, Ukraine's President Vladimir Zelenski said yesterday
that peace talks so far have not been productive and
stressed that he's willing to speak directly with Putin.
Speaker 2 (03:57):
Now to Europe, the European Central Bank is likely to
lower interest rates for an eighth time as its economic
outlook projections dim All and Lis surveyed by Bloomberg, predict
a quarter point cut as a central bank responds to
the shocks caused by US tariffs. Bloomberg's senior Euro Area
economist David Powell explains why there's such consensus.
Speaker 1 (04:20):
The impact of the US tariffs in the area is
going to be disinflation areas. It's going to lower inflation
pressures as cheaper goods come in from China and weaker
demand ways and the economy, so as a whole, they're
pretty much all in favor of a cut.
Speaker 2 (04:38):
Bloomberg's David Powell there, who adds that there's far more
uncertainty about where policy goes after today's meeting. ECB President
Christine Lagarde has to contend with both tariff uncertainty and
the prospect of a colossal boost in European defense spending.
Speaker 3 (04:54):
Some of the world's biggest banks are pushing British regulators
to move faster with plans to loosen rules on bonuses.
UK regulators asked for reviews on whether to shrink how
long senior bankers need to defer their bonuses from eight
years to five years. They promised new policies by the
end of twenty twenty five. Bloomberg has learned the finance
(05:14):
sector wants action much faster than that.
Speaker 6 (05:17):
James Wilcock has more.
Speaker 9 (05:19):
The post financial crisis thinking went Bonuses reward a banker
for bets that pay off, but if banks hold onto
those bonuses for longer, they can penalize the professionals who
took overly risky choices when the downsides emerge. Yet now
the UK wants to encourage more risk in its financial system,
(05:41):
and the world's banks are privately asking regulators to get
a move on with changing the rules so they can
apply them to this year's pay packets. In London, James
Wilcock Bloomberg Radio.
Speaker 2 (05:54):
Three quarters of Pride organizers in the UK have seen
a decline in partnerships this year. That says the top
administration's aversion to workplace diversity, equity and inclusion policies seemingly
reverberates across the Atlantic. Bloomberg's team Adebayo has.
Speaker 10 (06:11):
More Pride funding from corporate partners is down over fifty
percent this year. That's according to new data from the
UK Pride Organizers Network. The cuts of its smaller parades
and celebrations the hardest, even leading to several cancelations. Pullback
from American companies has been the most noticeable in the
wake of President Trump's executive orders demanding.
Speaker 4 (06:33):
The end of what he calls illegal DEI.
Speaker 10 (06:36):
Declining LGBTQ support is a trend already documented in the US,
where two in five corporate executives are scaling back Pride
engagement this year. In London Tia Adebayo Bloomberg.
Speaker 3 (06:48):
Radio, Wrexham Football Club is considering selling a stake which
will put its valuation at up to three hundred and
fifty million pounds. Bloomberg understands the Welsh team owned by
Hollywood stars Ryan Red and Rob Mchaelhaney is working with
advisors to gauge demand. The move comes four years since
the duo purchased a side for two million pounds in
(07:08):
just months after Wrexham's valuation hit one hundred million after
the Allen family bought a near fifteen percent stake. A
new valuation of around three hundred and fifty million pounds
would easily make Raxham the most expensive team in the
English Football League Championship.
Speaker 2 (07:25):
Those are our top stories for you this morning, Ryan Reynolds. Interestingly,
I heard recently that the Hollywood actor says he just
turns a deaf in now to accusations, maybe that he'll
get bored with that football club. Anyway, the valuation huge
for a football club in the UK. Let's get to
the market though. European stock futures are flat this morning.
A Germany Xetra Daxo, Yes thatd it hit a record
(07:47):
high smpfive founded EVENI futures right now also very little action.
Of course, the overhang of Friday's jobs reports slowing things down.
Speaker 4 (07:57):
It We've seen s and.
Speaker 2 (07:58):
P five hunded emanees down to tenth of one percent
Japanese docks, though are down this morning, a bonds are rallying.
That's despite demand for Japan's thirty year government bond auction
seeing the weakest demand since twenty twenty three. The bid
to cover ratio two point nine two percent versus the
average over twelve months of three point thirty nine, so
that scene maybe is ramping up pressure on the government
(08:20):
to adjust issuance. There have been concerns though overall about
rising yields globally, so that of note this morning in
the markets, and I'll just end on the dollar which
is actually firmer a tenth of one percent this morning.
Speaker 6 (08:31):
Those are the markets in a moment.
Speaker 3 (08:33):
More on Donald Trump's latest travel plan, plus why the
ECB is expected to cut rates again today and why
Germany is uniquely vulnerable to America's approach to trade policy
as the Chancellor goes to Washington to meet Donald Trump.
Speaker 6 (08:47):
But in the story that caught al right this morning,
is that a buzzing?
Speaker 3 (08:51):
Are we here in our ears or is it my
food delivery arriving a new project lunching between delivery and
a company called Mano Drones in West Dublin is going
to see three kilometer area of the city being open
to drone deliveries for the first time, so an option
being allowed there as well.
Speaker 6 (09:06):
This is something that we've heard.
Speaker 3 (09:07):
Quite a lot of being promised, but the fact that
it's actually starting is a bit of a milestone.
Speaker 2 (09:12):
I have a vision of you jumping up and down
on your doorstep trying to reach the food parcel. No
look joking aside. Yes, apparently food delivery companies have been
adding a lot and investing a lot in drone and
robot delivery technology. Basically, it makes the deliveries fast. They
go really fast, eighty kilometers an hour, so they really
whizz through the air quickly, and it means that you
(09:34):
don't have to rely on gig economy workers as much.
Speaker 4 (09:37):
So maybe does that bring down costs?
Speaker 2 (09:38):
Although I guess this company that signed this agreement in
Dublin mana drones. I don't know how expensive it is
to develop that technology.
Speaker 3 (09:48):
Yeah, indeed, I mean interesting to see some of the
reports in Irish media about this as well, talking about
local residents complaining about the test runs that we're done
for those two because of the noise involved. Apparently it
sounds like a lawnmower.
Speaker 4 (09:58):
I just think I like the joke. The drone company
is called Manna Drones. Haha, so it is a kind
of reference to what.
Speaker 6 (10:07):
You've ordered, I suppose. Yeah, exactly right. You can read
the full story. Bloomberg dot Com will put a note
a link in our show notes as well.
Speaker 3 (10:14):
Let's bring you more note out on Donald Trump banning
people from twelve countries from entering the United States and
placing restrictions on several more countries too. Our senior editor
Bill Ferries joins us for the details. Bill, the US
president reinstating this controversial measure from his first term, but
adding more countries to the list, including Afghanistan. What is
his rationale for selecting these countries?
Speaker 11 (10:36):
Hi, Well, thanks for having me. It is a little
bit of a hodgepodge of countries scattered from Venezuela all
the way to Laos in Southeast Asia, with several African
countries in the mix. The President said that he was
doing this as partly as a response to that attack
in Boulder, Colorado on protesters buy in a Egyptian man
(11:01):
who had overstayed his visa. But then none of these,
none of these new regulations apply to Egypt, and it
wouldn't have affected this the suspect in that case from
getting into the country. So he said that's the reason,
But then it wouldn't have done anything in this situation.
So if I, you know, if I look at the
list here, and it's really nineteen countries that are either
(11:24):
full bands or restrictions. Some of them are politically very unstable,
Some of them are Muslim majority, which was a target
of Trump in his first term, and some of them,
you know, I just don't know. Some of them are
not going to be major sources of immigration to begin with,
or of even visitors or tourists. So it's probably effects
in some cases very very small number of people, like Iran,
(11:46):
for instance.
Speaker 2 (11:48):
But President Trump has a sweeping immigration agenda in his
first term. And now, how significant are these shifts in
US immigration policy?
Speaker 11 (11:59):
Yeah, I think overall, we've already seen the number The
administration is coming down much harder on visa applications, even
if you're a student trying to go to Harvard, for instance.
And we know that we've seen already some of the
travel data, tourist data that those numbers are down from
a year ago as well. There is really you know,
(12:20):
it's looking like, you know, an America First policy is
about you know, people who are already in the country
and not bringing in a lot more at this point.
So it looks like they are really trying to make
the US a harder place to get into, just in general,
and in some cases, as we see today, they want
to make it impossible to get in.
Speaker 3 (12:40):
Another story that you've been watching for US Bill Elon
Musk continuing his efforts to stop President Trump's tax bill
from being passed by the Senate. This is the Congressional
Budget Office, as the version passed by the House, what
add two point four trillion dollars to the deficit?
Speaker 6 (12:53):
Is the bill in real trouble.
Speaker 11 (12:56):
It's in real trouble. It's hard to know if the
bill is going to get more affordable or not. But
even when the House, as soon as the House passed
that legislation, you had Republican senators saying, you know what
we're gonna We're probably going to have to make some changes,
whether it was they didn't like some of the cuts
to medicaid or they thought there was more room for
spending cuts for instance, or smaller tax breaks. One of
(13:18):
the big things on the House side was that state
and local tax deduction. That's so important to people in
New York New Jersey area. That's something that House the Senators,
Republican senators have said may need to be renegotiated. They
the challenge for Republicans is they can only lose three
votes in the Senate, and I think they only have
They have about the same margin in the House, so
(13:40):
they you can't. You don't have a lot of bandwidth
to make changes without losing too much support on the
other side.
Speaker 2 (13:47):
Bill, thank you so much for being with us. Our
senior editor, Bill Ferries.
Speaker 3 (13:51):
The European Center Bank is expected to cut interest rates
by a quarter point at its meeting today, bringing its
deposit rate to two percent. This as Donald Trump's jolts
to glow will trade dim the prospects for inflation and growth.
Our European Economics editor, Zoetion and devices with us for more.
Good morning, Zoe. Markets are certain that the ECB will
cut today is the real question?
Speaker 6 (14:10):
Then what are policy makers going to do next?
Speaker 12 (14:14):
The cut today is going to happen, There's really no
question about that. The next step is now the July
rate meeting will actually be a hold, and then there
should be another cut in September. That may then be
the final cut in this cycle, but we'll have to see.
Speaker 2 (14:30):
In terms of the changes in US trade policy, how
is that affecting the area and the economy.
Speaker 12 (14:37):
So far so one unexpected element of the trade policy
has been that the euro really has strengthened overall. One
has expected that all this America first stuff would push
the dollar up, but as we all know, the euro
has instead strengthened. That then has had an effect on inflation.
Would have thought that if the euro weekends that that
would have had an impact on inflation. But now how
(15:00):
inflation is actually cooled down just as we had kind
of hoped. So inflation now is under that two percent
that had been anticipated. The economy is a different story.
We're getting data today for factory orders from Germany. Those
are likely to be down. Overall, we know that this
Trump trade policy is a hit to growth, and that
is one of those questions if the ECB actually does
(15:21):
have to do maybe a July cut just because the
economy is in such trouble.
Speaker 3 (15:26):
Watching the press conference later on, Zoe will also be
looking to see if Christina Guard might face some questions
about her own future and her job at the European
Central Bank.
Speaker 12 (15:35):
Yeah, she's almost certain to face questions on that. Bloomberg
and other media have reported that the WEF have been
wooing her. The World Economic Firm has been wooing her
quite actively to become the chair of that organization. As
we know, they organize the big power in divorce every January.
Generally a big, high profile job. But then one does
(15:56):
have to ask, if you're the world's number two most
important cent banker after Joe Powell, do you really want
to leave to run the conference?
Speaker 2 (16:05):
Interesting because the head of the conference leaving early, leaving
the job early effectively, so that put that role up
in the air. Zoi, thank you so much for being
with us. Our European Economics editor is Zoi schne Vice.
Speaker 6 (16:18):
What's staying with Germany?
Speaker 3 (16:19):
The Chancellor Frederick Mertz heading to Washington today for his
first meeting with Donald Trump, but comes at a time
that Europe's largest economies facing its own challenges despite the
bulish sentiment from investors. Our reporter Marilyn Martin joins us
from Frankford for more. Marilynd, good morning. What position is
Mertz in then? When he's meeting Donald Trump?
Speaker 6 (16:37):
Today.
Speaker 13 (16:38):
Yeah, it won't be easy meeting for him, as the
stakes are very high. Germany is particularly vulnerable to Trump's
trade policies because the post war growth model of Germany
relied heavily on exports and the US and China are
the key markets here for German firms. But now taking China,
it has turned increasingly from a consumer of German goods
to competitor. So the trade deficit with China has roughly
(17:01):
has increased immensely, from nine billion euros in two thousand
to eighty six billion euros in twenty twenty two. So
this just goes to show that the US market has
become increasingly important for Germany's firms, and by now it's
the country's largest export market. Now with TIFFs, the country's
firms are uniquely exposed. Trump has repeatedly called out what
(17:24):
he says are unfair trade practices, and that's abouts trouble
for Germany and it's new Chancellor Mayries, who actually promise
to reinvigorate growth. Companies have already withdrawn their profit forecasts
due to the trade uncertainty, and now they see how
they can adapt, for example by moving production to the US.
Mercidis has already announced, for example, moving another model to
(17:47):
Alabama production sites.
Speaker 2 (17:50):
Okay, so today could be pretty delicate. Then in terms
of German companies in the German economy, how prepared are
they to deal with deterioration, any deterioration in relations with
the US.
Speaker 13 (18:05):
Yeah, it actually comes out a very bad timing because
the industry, which is the backbone of the economy, is
already in decline, so that the production levels have been
on a downward path since the end of twenty seventeen
and they've never really recovered from the pandemic, and more
and more companies are announcing job cuts. One economist we've
talked to has said that the German industry is losing
(18:26):
around ten thousand posts in a month and the general
economic sentiment is very pessimistic. The economy has shrunk for
the past two years since the energy crisis due to
Russia's roy so there is an increasing pressure on the
economic model, and the new German government has recognized this
challenge and it already cleared the way for higher defense
(18:49):
spendings and a five hundred billion euro infrastructure fund that's
roughly five hundred and seventy billion dollars, but the key
question is how this money will be spent and whether
it will translate into putting the economy on a long
term sustainable footing.
Speaker 3 (19:02):
And of course Marlon Friders is only in the job
a very short period of time after the elections in February.
What does this shift in policy and these challenges mean
for the political situation in Germany.
Speaker 13 (19:15):
It's true he's only been elected in February, and while
his party came first, he's increasingly under pressure because the
second party or the second party that came after his party,
is the far right extremist party, the AfD. And now
like after the elections, his party has actually fell fallen
in pulse and once so we even showed the AfD
ahead of them. So there's a lot of pressure on.
Speaker 14 (19:38):
Him now to act, and the Trump team is not
really helping him and making the situation any easier, just
because looking at Vice President Varnes who met with Alis Widel,
the AFT candidate, just before the election, and on another
more recent occasion, the German Domestic Intelligence Agency has labeled
the AfD as a right wing extreme This organization in Marcurrubio,
(20:02):
the Secretary of State, and then as response to that
is posted on x that this is quote unquote tyranny
in disguise, so you'll see this will be a very
delicate meeting for chance of the night.
Speaker 3 (20:15):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:21):
Look for us on your podcast feed every morning on Apple, Spotify,
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Speaker 3 (20:27):
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Speaker 2 (20:33):
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Speaker 4 (20:41):
I'm Caroline Hitka and.
Speaker 6 (20:42):
I'm Stephen Carroll.
Speaker 3 (20:43):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
Break Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Blueberg Day ba Q podcast, available every
morning on Apple, Spotify or wherever you listen. It's Thursday,
the fifth of June in London. I'm Caroline Hepcare and.
Speaker 3 (00:18):
I'm Stephen Carroll. Coming up today, Donald Trump signs a
travel band that blocks people from twelve countries from entering
the United States.
Speaker 2 (00:27):
The European Central Bank is on track to cut interest
rates for an eighth time as trade tensions weigh on
economic growth.
Speaker 3 (00:34):
Plus targeting Germany's week spat as Friedrich Martz heads to
the White House, Europe's biggest economy looks uniquely vulnerable to
US trade policy.
Speaker 4 (00:43):
Let's start with a roundup of our top stories.
Speaker 3 (00:46):
US President Donald Trump has signed a travel band targeting
twelve countries, including Afghanistan, Myanmar, and Chad. The measure also
partially restricts entry from a host of other nations, including
Cuba and Venezuela. It reinstates one of the most controversial
policies from Donald Trump's first term. In a video posted online,
the US President claimed the move was necessary for national security,
(01:08):
citing the recent attack on an event in support of
Israeli hostages.
Speaker 5 (01:13):
A recent terror attack in Boulder, Colorado has underscored the
extreme dangers posed to our country by the entry of
foreign nationals who are not properly vetted.
Speaker 6 (01:23):
We don't want them.
Speaker 3 (01:25):
Trump's comments follow earlier remarks blaming the immigration policies of
former President Joe Biden for the suspect's presence in the US. However,
Mohammed Solomon is an Egyptian national who overstayed his visa
and would not have been affected by the proposed ban.
The President separately signed a proclamation suspending visas for foreign
students seeking to participate in exchange programs at Harvard University.
Speaker 2 (01:49):
Now, Elon Musk has rashed up his offensive against President
Trump's signature tax bill. Musk took to social media to
urge Americans to contact makers to kill the legislation, citing
it two point four trillion dollar price tag. However, Blueberg
understands that the Tesla CEO only came out against the
(02:11):
bill after failing to convince Republicans to preserve tax credits
for electric vehicles. Democratic Senator Chuck Schumer says that what
the former White House advisor says matters.
Speaker 4 (02:23):
On the other side of the aisle.
Speaker 7 (02:25):
He's not my cup of tea, to put it mildly,
but Republicans are already listening to them. They're already listening
to them. You've heard some of the right wing groups
uplift Elon Musk against Donald.
Speaker 4 (02:36):
Trump Bynority Senate leader Chuck Schumer.
Speaker 2 (02:38):
They're speaking as The non partisan US Congressional Budget Office
projected that President Trump's tariffs could generate more federal revenue
than would be lost through his tax cut plan. The
CBO estimates that the tariffs could shrink the budget gap
by two point eight trillion dollars over a decade. However,
that calculation assumed tariffs remain at high levels for the
(03:02):
entire ten year period.
Speaker 3 (03:04):
Donald Trump says Russias Latimir Putin warns that he will
retaliate for a recent Ukrainian drone strike. The outcome from
a call between the two leaders is the latest sign
that US efforts to bring about peace have stalled for more.
Commanding General of the US Army in Europe, Ben Hodges
was extremely critical of Trump's social media post.
Speaker 8 (03:25):
This embarrassing truth social post confirms for anybody that still
was wondering that the Trump administration has zero interest in
doing anything to put pressure on Russia to help Ukraine
or to get to some kind of sustainable peace. I
mean it was too hard for him. Their approach was
doomed to failure from the very beginning.
Speaker 3 (03:47):
Ben Hodges, speaking there, Ukraine's President Vladimir Zelenski said yesterday
that peace talks so far have not been productive and
stressed that he's willing to speak directly with Putin.
Speaker 2 (03:57):
Now to Europe, the European Central Bank is likely to
lower interest rates for an eighth time as its economic
outlook projections dim All and Lis surveyed by Bloomberg, predict
a quarter point cut as a central bank responds to
the shocks caused by US tariffs. Bloomberg's senior Euro Area
economist David Powell explains why there's such consensus.
Speaker 1 (04:20):
The impact of the US tariffs in the area is
going to be disinflation areas. It's going to lower inflation
pressures as cheaper goods come in from China and weaker
demand ways and the economy, so as a whole, they're
pretty much all in favor of a cut.
Speaker 2 (04:38):
Bloomberg's David Powell there, who adds that there's far more
uncertainty about where policy goes after today's meeting. ECB President
Christine Lagarde has to contend with both tariff uncertainty and
the prospect of a colossal boost in European defense spending.
Speaker 3 (04:54):
Some of the world's biggest banks are pushing British regulators
to move faster with plans to loosen rules on bonuses.
UK regulators asked for reviews on whether to shrink how
long senior bankers need to defer their bonuses from eight
years to five years. They promised new policies by the
end of twenty twenty five. Bloomberg has learned the finance
(05:14):
sector wants action much faster than that.
Speaker 6 (05:17):
James Wilcock has more.
Speaker 9 (05:19):
The post financial crisis thinking went Bonuses reward a banker
for bets that pay off, but if banks hold onto
those bonuses for longer, they can penalize the professionals who
took overly risky choices when the downsides emerge. Yet now
the UK wants to encourage more risk in its financial system,
(05:41):
and the world's banks are privately asking regulators to get
a move on with changing the rules so they can
apply them to this year's pay packets. In London, James
Wilcock Bloomberg Radio.
Speaker 2 (05:54):
Three quarters of Pride organizers in the UK have seen
a decline in partnerships this year. That says the top
administration's aversion to workplace diversity, equity and inclusion policies seemingly
reverberates across the Atlantic. Bloomberg's team Adebayo has.
Speaker 10 (06:11):
More Pride funding from corporate partners is down over fifty
percent this year. That's according to new data from the
UK Pride Organizers Network. The cuts of its smaller parades
and celebrations the hardest, even leading to several cancelations. Pullback
from American companies has been the most noticeable in the
wake of President Trump's executive orders demanding.
Speaker 4 (06:33):
The end of what he calls illegal DEI.
Speaker 10 (06:36):
Declining LGBTQ support is a trend already documented in the US,
where two in five corporate executives are scaling back Pride
engagement this year. In London Tia Adebayo Bloomberg.
Speaker 3 (06:48):
Radio, Wrexham Football Club is considering selling a stake which
will put its valuation at up to three hundred and
fifty million pounds. Bloomberg understands the Welsh team owned by
Hollywood stars Ryan Red and Rob Mchaelhaney is working with
advisors to gauge demand. The move comes four years since
the duo purchased a side for two million pounds in
(07:08):
just months after Wrexham's valuation hit one hundred million after
the Allen family bought a near fifteen percent stake. A
new valuation of around three hundred and fifty million pounds
would easily make Raxham the most expensive team in the
English Football League Championship.
Speaker 2 (07:25):
Those are our top stories for you this morning, Ryan Reynolds. Interestingly,
I heard recently that the Hollywood actor says he just
turns a deaf in now to accusations, maybe that he'll
get bored with that football club. Anyway, the valuation huge
for a football club in the UK. Let's get to
the market though. European stock futures are flat this morning.
A Germany Xetra Daxo, Yes thatd it hit a record
(07:47):
high smpfive founded EVENI futures right now also very little action.
Of course, the overhang of Friday's jobs reports slowing things down.
Speaker 4 (07:57):
It We've seen s and.
Speaker 2 (07:58):
P five hunded emanees down to tenth of one percent
Japanese docks, though are down this morning, a bonds are rallying.
That's despite demand for Japan's thirty year government bond auction
seeing the weakest demand since twenty twenty three. The bid
to cover ratio two point nine two percent versus the
average over twelve months of three point thirty nine, so
that scene maybe is ramping up pressure on the government
(08:20):
to adjust issuance. There have been concerns though overall about
rising yields globally, so that of note this morning in
the markets, and I'll just end on the dollar which
is actually firmer a tenth of one percent this morning.
Speaker 6 (08:31):
Those are the markets in a moment.
Speaker 3 (08:33):
More on Donald Trump's latest travel plan, plus why the
ECB is expected to cut rates again today and why
Germany is uniquely vulnerable to America's approach to trade policy
as the Chancellor goes to Washington to meet Donald Trump.
Speaker 6 (08:47):
But in the story that caught al right this morning,
is that a buzzing?
Speaker 3 (08:51):
Are we here in our ears or is it my
food delivery arriving a new project lunching between delivery and
a company called Mano Drones in West Dublin is going
to see three kilometer area of the city being open
to drone deliveries for the first time, so an option
being allowed there as well.
Speaker 6 (09:06):
This is something that we've heard.
Speaker 3 (09:07):
Quite a lot of being promised, but the fact that
it's actually starting is a bit of a milestone.
Speaker 2 (09:12):
I have a vision of you jumping up and down
on your doorstep trying to reach the food parcel. No
look joking aside. Yes, apparently food delivery companies have been
adding a lot and investing a lot in drone and
robot delivery technology. Basically, it makes the deliveries fast. They
go really fast, eighty kilometers an hour, so they really
whizz through the air quickly, and it means that you
(09:34):
don't have to rely on gig economy workers as much.
Speaker 4 (09:37):
So maybe does that bring down costs?
Speaker 2 (09:38):
Although I guess this company that signed this agreement in
Dublin mana drones. I don't know how expensive it is
to develop that technology.
Speaker 3 (09:48):
Yeah, indeed, I mean interesting to see some of the
reports in Irish media about this as well, talking about
local residents complaining about the test runs that we're done
for those two because of the noise involved. Apparently it
sounds like a lawnmower.
Speaker 4 (09:58):
I just think I like the joke. The drone company
is called Manna Drones. Haha, so it is a kind
of reference to what.
Speaker 6 (10:07):
You've ordered, I suppose. Yeah, exactly right. You can read
the full story. Bloomberg dot Com will put a note
a link in our show notes as well.
Speaker 3 (10:14):
Let's bring you more note out on Donald Trump banning
people from twelve countries from entering the United States and
placing restrictions on several more countries too. Our senior editor
Bill Ferries joins us for the details. Bill, the US
president reinstating this controversial measure from his first term, but
adding more countries to the list, including Afghanistan. What is
his rationale for selecting these countries?
Speaker 11 (10:36):
Hi, Well, thanks for having me. It is a little
bit of a hodgepodge of countries scattered from Venezuela all
the way to Laos in Southeast Asia, with several African
countries in the mix. The President said that he was
doing this as partly as a response to that attack
in Boulder, Colorado on protesters buy in a Egyptian man
(11:01):
who had overstayed his visa. But then none of these,
none of these new regulations apply to Egypt, and it
wouldn't have affected this the suspect in that case from
getting into the country. So he said that's the reason,
But then it wouldn't have done anything in this situation.
So if I, you know, if I look at the
list here, and it's really nineteen countries that are either
(11:24):
full bands or restrictions. Some of them are politically very unstable,
Some of them are Muslim majority, which was a target
of Trump in his first term, and some of them,
you know, I just don't know. Some of them are
not going to be major sources of immigration to begin with,
or of even visitors or tourists. So it's probably effects
in some cases very very small number of people, like Iran,
(11:46):
for instance.
Speaker 2 (11:48):
But President Trump has a sweeping immigration agenda in his
first term. And now, how significant are these shifts in
US immigration policy?
Speaker 11 (11:59):
Yeah, I think overall, we've already seen the number The
administration is coming down much harder on visa applications, even
if you're a student trying to go to Harvard, for instance.
And we know that we've seen already some of the
travel data, tourist data that those numbers are down from
a year ago as well. There is really you know,
(12:20):
it's looking like, you know, an America First policy is
about you know, people who are already in the country
and not bringing in a lot more at this point.
So it looks like they are really trying to make
the US a harder place to get into, just in general,
and in some cases, as we see today, they want
to make it impossible to get in.
Speaker 3 (12:40):
Another story that you've been watching for US Bill Elon
Musk continuing his efforts to stop President Trump's tax bill
from being passed by the Senate. This is the Congressional
Budget Office, as the version passed by the House, what
add two point four trillion dollars to the deficit?
Speaker 6 (12:53):
Is the bill in real trouble.
Speaker 11 (12:56):
It's in real trouble. It's hard to know if the
bill is going to get more affordable or not. But
even when the House, as soon as the House passed
that legislation, you had Republican senators saying, you know what
we're gonna We're probably going to have to make some changes,
whether it was they didn't like some of the cuts
to medicaid or they thought there was more room for
spending cuts for instance, or smaller tax breaks. One of
(13:18):
the big things on the House side was that state
and local tax deduction. That's so important to people in
New York New Jersey area. That's something that House the Senators,
Republican senators have said may need to be renegotiated. They
the challenge for Republicans is they can only lose three
votes in the Senate, and I think they only have
They have about the same margin in the House, so
(13:40):
they you can't. You don't have a lot of bandwidth
to make changes without losing too much support on the
other side.
Speaker 2 (13:47):
Bill, thank you so much for being with us. Our
senior editor, Bill Ferries.
Speaker 3 (13:51):
The European Center Bank is expected to cut interest rates
by a quarter point at its meeting today, bringing its
deposit rate to two percent. This as Donald Trump's jolts
to glow will trade dim the prospects for inflation and growth.
Our European Economics editor, Zoetion and devices with us for more.
Good morning, Zoe. Markets are certain that the ECB will
cut today is the real question?
Speaker 6 (14:10):
Then what are policy makers going to do next?
Speaker 12 (14:14):
The cut today is going to happen, There's really no
question about that. The next step is now the July
rate meeting will actually be a hold, and then there
should be another cut in September. That may then be
the final cut in this cycle, but we'll have to see.
Speaker 2 (14:30):
In terms of the changes in US trade policy, how
is that affecting the area and the economy.
Speaker 12 (14:37):
So far so one unexpected element of the trade policy
has been that the euro really has strengthened overall. One
has expected that all this America first stuff would push
the dollar up, but as we all know, the euro
has instead strengthened. That then has had an effect on inflation.
Would have thought that if the euro weekends that that
would have had an impact on inflation. But now how
(15:00):
inflation is actually cooled down just as we had kind
of hoped. So inflation now is under that two percent
that had been anticipated. The economy is a different story.
We're getting data today for factory orders from Germany. Those
are likely to be down. Overall, we know that this
Trump trade policy is a hit to growth, and that
is one of those questions if the ECB actually does
(15:21):
have to do maybe a July cut just because the
economy is in such trouble.
Speaker 3 (15:26):
Watching the press conference later on, Zoe will also be
looking to see if Christina Guard might face some questions
about her own future and her job at the European
Central Bank.
Speaker 12 (15:35):
Yeah, she's almost certain to face questions on that. Bloomberg
and other media have reported that the WEF have been
wooing her. The World Economic Firm has been wooing her
quite actively to become the chair of that organization. As
we know, they organize the big power in divorce every January.
Generally a big, high profile job. But then one does
(15:56):
have to ask, if you're the world's number two most
important cent banker after Joe Powell, do you really want
to leave to run the conference?
Speaker 2 (16:05):
Interesting because the head of the conference leaving early, leaving
the job early effectively, so that put that role up
in the air. Zoi, thank you so much for being
with us. Our European Economics editor is Zoi schne Vice.
Speaker 6 (16:18):
What's staying with Germany?
Speaker 3 (16:19):
The Chancellor Frederick Mertz heading to Washington today for his
first meeting with Donald Trump, but comes at a time
that Europe's largest economies facing its own challenges despite the
bulish sentiment from investors. Our reporter Marilyn Martin joins us
from Frankford for more. Marilynd, good morning. What position is
Mertz in then? When he's meeting Donald Trump?
Speaker 6 (16:37):
Today.
Speaker 13 (16:38):
Yeah, it won't be easy meeting for him, as the
stakes are very high. Germany is particularly vulnerable to Trump's
trade policies because the post war growth model of Germany
relied heavily on exports and the US and China are
the key markets here for German firms. But now taking China,
it has turned increasingly from a consumer of German goods
to competitor. So the trade deficit with China has roughly
(17:01):
has increased immensely, from nine billion euros in two thousand
to eighty six billion euros in twenty twenty two. So
this just goes to show that the US market has
become increasingly important for Germany's firms, and by now it's
the country's largest export market. Now with TIFFs, the country's
firms are uniquely exposed. Trump has repeatedly called out what
(17:24):
he says are unfair trade practices, and that's abouts trouble
for Germany and it's new Chancellor Mayries, who actually promise
to reinvigorate growth. Companies have already withdrawn their profit forecasts
due to the trade uncertainty, and now they see how
they can adapt, for example by moving production to the US.
Mercidis has already announced, for example, moving another model to
(17:47):
Alabama production sites.
Speaker 2 (17:50):
Okay, so today could be pretty delicate. Then in terms
of German companies in the German economy, how prepared are
they to deal with deterioration, any deterioration in relations with
the US.
Speaker 13 (18:05):
Yeah, it actually comes out a very bad timing because
the industry, which is the backbone of the economy, is
already in decline, so that the production levels have been
on a downward path since the end of twenty seventeen
and they've never really recovered from the pandemic, and more
and more companies are announcing job cuts. One economist we've
talked to has said that the German industry is losing
(18:26):
around ten thousand posts in a month and the general
economic sentiment is very pessimistic. The economy has shrunk for
the past two years since the energy crisis due to
Russia's roy so there is an increasing pressure on the
economic model, and the new German government has recognized this
challenge and it already cleared the way for higher defense
(18:49):
spendings and a five hundred billion euro infrastructure fund that's
roughly five hundred and seventy billion dollars, but the key
question is how this money will be spent and whether
it will translate into putting the economy on a long
term sustainable footing.
Speaker 3 (19:02):
And of course Marlon Friders is only in the job
a very short period of time after the elections in February.
What does this shift in policy and these challenges mean
for the political situation in Germany.
Speaker 13 (19:15):
It's true he's only been elected in February, and while
his party came first, he's increasingly under pressure because the
second party or the second party that came after his party,
is the far right extremist party, the AfD. And now
like after the elections, his party has actually fell fallen
in pulse and once so we even showed the AfD
ahead of them. So there's a lot of pressure on.
Speaker 14 (19:38):
Him now to act, and the Trump team is not
really helping him and making the situation any easier, just
because looking at Vice President Varnes who met with Alis Widel,
the AFT candidate, just before the election, and on another
more recent occasion, the German Domestic Intelligence Agency has labeled
the AfD as a right wing extreme This organization in Marcurrubio,
(20:02):
the Secretary of State, and then as response to that
is posted on x that this is quote unquote tyranny
in disguise, so you'll see this will be a very
delicate meeting for chance of the night.
Speaker 3 (20:15):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (20:21):
Look for us on your podcast feed every morning on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 3 (20:27):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:33):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 4 (20:41):
I'm Caroline Hitka and.
Speaker 6 (20:42):
I'm Stephen Carroll.
Speaker 3 (20:43):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
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