April 22, 2025 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) President Donald Trump warned the US economy may slow if the Federal Reserve does not move to immediately reduce interest rates, in his latest broadside against Fed Chair Jerome Powell.
(2) Stocks and bonds fluctuated, and a gauge of the dollar headed for a fourth day of losses as little progress in tariff negotiations and growth concerns about the US prompted investors to pare bets in a volatile market.
(3) Bloomberg Economics estimates President Trump's "liberation day" tariffs will shave about $2 trillion off global output by the end of 2027, relative to a scenario where border taxes had stayed unchanged. Policy uncertainty (it's still not clear where tariffs will settle) and modelling uncertainty (the shocks have no precedent in the post World War II data) mean the error band around that forecast is wide.
(4) The US set new duties as high as 3,521% on solar imports from four Southeast Asian countries, delivering a win for domestic manufacturers while intensifying headwinds already threatening the country’s renewable power development.
(5) The College of Cardinals will meet in Conclave in about two weeks to elect Francis' successor, with about 135 cardinals having the vote. The election could threaten Francis' legacy as a reforming pope, as the church could swing away from his positions on issues such as LGBTQ rights.
(6) Podcast conversation : Building a Better Manosphere
See omnystudio.com/listener for privacy information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Day baker At podcast, available every
morning on Apple, Spotify or whatever you listen. It's Tuesday,
the twenty second of April. Here in London. I'm Caroline
Hipkot and.
Speaker 3 (00:18):
I'm Stephen Carroll.
Speaker 4 (00:19):
Coming up today, Donald Trump demands an immediate rate cut
from Fed charge Jerome Powell as investors flee US docs,
bonds and the dollar amid growing Sell America momentum a.
Speaker 2 (00:30):
Two trillion dollar tariff hit. Bloomberg crunches the numbers on
the cost of the US president's global.
Speaker 3 (00:37):
Levies plus the art of the deal.
Speaker 4 (00:39):
Rachel Reeves vows to put the UK front and center
as she prepares for face to face talks with her
US counterpart, Scott Bessant.
Speaker 2 (00:46):
Let's start with the roundup of our top stories.
Speaker 4 (00:49):
US markets have sold off amid renewed attacks from President
Trump on Federal Reserve charg Jerome Powell. In his latest
broadside against the central Bank, Chief Trump warned the economy
could slow unless quote mister too late, a major loser
lower's interest rates.
Speaker 3 (01:05):
Now.
Speaker 4 (01:06):
Bloomberg reports that Trump has privately questioned advisors about the
possibility of removing Powell, though some administration officials have cautioned
him against such a move. Economists widely expect Trump's tariffs
to boost inflation and slow growth, even if just temporarily.
Former Federal Reserve economists Claudia Sam says markets need to
be alive to the possibility of the White House trying
(01:28):
to remove Powell.
Speaker 5 (01:29):
I take it very seriously, and I you know, this
administration has taken steps, whether it's with the tariffs or
with downsides in the government that really were, you know,
beyond expectations. So I you know, the unthinkable is thinkable
with this administration.
Speaker 4 (01:44):
Thadia Sam, speaking there after Federal Reserve Charge your own.
Powell again stressed last week that the Center Bank must
ensure tariffs don't trigger a more persistent rise in inflation.
Speaker 2 (01:55):
Trump's escalating frustration with the Fed chair has triggered a
broad fly from US stocks, bonds, and the dollar has
traders grow increasingly uneasy with the administration's policy approach. A
key gauge of the greenback is on track for a
fourth straight day of losses as sentiment on Wall Street
shifts from optimism to what some are calling a cell
(02:16):
America mood. Apollos Chief economist Torston Slock says the US
economy is facing an ever growing list of headwinds.
Speaker 1 (02:26):
It's just not only terms and retaliation, which of course
are the most important ones. It's also corporate confidence is
very low. The Conference Board measures and also the CEO
index measure from various sources and CFO measures going lower.
Speaker 3 (02:41):
KAPEX plans are also grinding lower.
Speaker 5 (02:43):
Literally for the last two months, and because of course,
consumer confidence is also at the lowest level.
Speaker 3 (02:48):
Literally in decades.
Speaker 2 (02:49):
Apollos Chief economists Torston Slock speaking there as investors continue
to pile into gold amid increasing market uncertainty. The precious
metal has now hit yet another code, topping three four
hundred and forty four dollars an ounce following a two
point nine percent search on non day.
Speaker 4 (03:08):
Donald Trump's trade tariffs and it's the beginning of April,
will shave about two trillion dollars off the global economy
by the end of twenty twenty seven, according to a
new estimate from Bloomberg Economics. The effects of the trade
war hanging over the world's economic leaders as they gather
of the IMF and World Bank Spring meetings in Washington,
Saxo Banks Chief Investments strass Charity Sanana says, the shape
(03:29):
of the shock is still unclear.
Speaker 6 (03:31):
Will it be a growth shock, will it be an
inflation shock? So some kind of an he went driven
you know issues maybe resulting in a kind of a
cyclical issue, some kind of a recession or a saculation, whatever.
Speaker 3 (03:42):
It might be.
Speaker 6 (03:44):
But now we're just mophing it into a structural one,
you know, with the kind of questions that it raises
on the credibility you know of the US and usc.
Speaker 4 (03:52):
ASCID Saxo Banks Chief Investment Strategies Charity Sanana, there the
tariff moves that brought into question US economic answer, security leadership,
and the multilateral rules based system symbolized by institutions like
the International Monetary Fund.
Speaker 2 (04:06):
Many leaders will be using the IMF gathering as an
opportunity for trade talks with the US government. UK Chancellor
Rachel Reeves is one of the finance ministers flying to
Washington to make the case for free trade. She's expected
to meet with US Treasury Secretary Scottan Bessen for the
first time there.
Speaker 4 (04:24):
The United States has announced new tariffs on solar panel
imports from Cambodia, Vietnam, Malaysia and Thailand. The levies could
be more than three thousand, five hundred percent the culmination
of a trade probe started by former President Joe Biden.
Many Chinese manufacturers had set up operations in Southeast Asia
after they were hit by similar tariffs twelve years ago.
(04:44):
The tariffs are likely to boost US domestic manufacturing but
increase the cost of ramping up renewable energy production.
Speaker 2 (04:52):
To other news, a paper conclave is now due to
decide on Pope France's successor after he passed away on
Eastern Monday. The College of Cardinals will meet in about
two weeks time, when around one hundred and thirty five
members will cast their vote. Amongst those traveling to Rome
for the proceedings will be the Archbishop of Westminster, Cardinal
Vincent Nichols, who says that Francis will be remembered fondly his.
Speaker 7 (05:16):
Commitment to the individual and to the people on the
edges of society, who is unquestioned, but he also fashioned
that in a way directed to those who hold the
power and generate the world.
Speaker 2 (05:31):
The Archbishop of Westminster, speaking there, the election could threaten
what Pope France's supporters see as his legacy as a
reforming pope if a more conservative candidate is chosen and
moves the Church away from his positions on issues such
as LGBTQ rights.
Speaker 4 (05:49):
American, European and Ukrainian officials are due to hold talks
in London tomorrow as the White House pushes for a
deal to hold Russia's invasion, whom We're understands. The US
ecritaristic Marco Rubio and special envoys are expected to meet
foreign ministers and advisors from France, Germany, the UK and Ukraine.
The gathering is intended as a follow up to meetings
(06:09):
in Paris last week, where the US shared proposals to
enable a ceasefire and peace agreement between Russia and Ukraine.
Speaker 2 (06:17):
Those are top stories for you this morning. Let's look
at the markets at the Bloomberg Dollar Spot index losing
ground again for a fourth day in a row. There
had been some early gains, but those seem to have evaporated.
The Bloomberg Dollar spot indexes currently down a tenth of
one percent, the yenner one hundred and forty handle, the
euro edging higher about a tenth almost two tenths of
one percent this morning US stock futures are actually in
(06:39):
the green after the plunge that we saw on Monday.
Asian equities and mixed Chinese tech shares drifting in Hong
Kong this as we see the Topics Index upper tenth
and the Nikky slightly lower this morning. As for oil prices,
WTI crud futures climbing one percent this on. In gold
(07:01):
up one point seven percent, so we're actually approaching the
thirty five hundred dollar mark four hundred and eighty two,
and looking at the bond market as tenny USC is
at four forty three, up by two basis points. Those
are the markets.
Speaker 4 (07:13):
In a moment, we'll bring you more on the pressure
on Jerown Powell. Plus Rachel Reeves heads to Washington for
those IMF and World Bank meetings in the shadow of
Trump's tariffs.
Speaker 3 (07:22):
But another story that we've caught our eye this morning.
Speaker 4 (07:25):
The author Rachel Gisa has been writing for BusinessWeek about
a topic that she's written a book about as well.
Speaker 3 (07:31):
But this is to do with the title is.
Speaker 4 (07:34):
Building a Better Man of Sphere, but something that's being
reflected on as the particularly masculine approach to policy that's
been taken under the Trump administration.
Speaker 2 (07:42):
Yeah, sort of hyper aggressive manhood, but not the sort
of masculine world let's say Ronald Reagan where it's kind
of tough sheriffs, that sort of part of Familia's type
of world that Rachel describes. In fact, she talks about
the men in the inner circle of Donald Trump, Elon
Musk and JD. Vance and Mark Rubio and Pete Hegser
(08:04):
than others not being actually in the kind of traditional
American archetypal sort of mode, but actually forming this kind
of insecure model of masculinity. She says that the manuscript
online doesn't have to be like that, that there could
be a kind of another another way, and she brings
out some really interesting statistics that for example, Goat, which
(08:27):
is a research firm, finds that young men in the
US a quarter of them follow fashion influencers, thirty percent
are into film and theater and acting. So that there
could be a kind of much broader Internet that you
could respond to young men's desires for that connection.
Speaker 4 (08:42):
It's not that the Internet as bad, articles that there
are bad parts of the Internet, and perhaps what we
need to be able to do is support boys and
young men in I suppose finding the diversity that's out
there as well, rather than necessarily falling into.
Speaker 3 (08:57):
Some of the murkier part of it. But it's a
really interesting reader.
Speaker 4 (09:00):
You'll find it at Bloomberg dot com and on the terminal,
and if you're listening to the Bloomberg Daybreak You're a podcast,
you'll find a link to the article in our show notes.
Speaker 2 (09:08):
Now to the markets we have seen world swings or
markets as traders face a new source of uncertainty? Will
Donald Trump tie to removed your own Powell as the
chair of the Federal Reserve?
Speaker 3 (09:18):
Butlin a big opinion.
Speaker 2 (09:19):
Columist Daniel mos Jones is now to discuss, Daniel, Good Morning,
how precarious do we think Powell's position is now?
Speaker 8 (09:27):
I want to go back to a remark that Claudia
sam made on air just a few minutes ago. She says,
it's a very real possibility. I agree, it certainly is
a possibility. Now does that make it a probability? I
don't know. If you look at the way markets have
behaved since Thursday morning, US time, when Trump resumed his
(09:52):
threats to get rid of Powell, it's that there's been
in abeyance for a little while the reaction has been
a swift and punishing so as the folks at ISI
ever Core have asked, if you liked the market reaction
to the tariffs, get ready for something very special In
(10:13):
the event, Powell is dismissed.
Speaker 4 (10:16):
In context of central bank independence, though, is there's a
bigger thrast than what we've seen before. It's not the
first time we've heard, but it's got crestsism of central bankers.
Speaker 8 (10:27):
Trump has been the first president in some decades to
openly take on the FED. What we tend to forget
is prior to the Clinton administration this was very widespread.
One of the things that Bob Ruben imposed on the
Clinton white House was we don't criticize the FED the
(10:48):
otherwise we believe in a strong ballot or so much
for that one. You know, Look, central banking history is
full of anecdotes about pressure that people like Richard Nixon,
like Lyndon Johnson, like others brought to bear. There was
a wartime monetary policy that existed under FDR and Harry Truman.
(11:10):
In Asia, central bank independence is slightly less tootemic, but
it is questioned. Nonetheless, serious questions have arisen about independence
in Indonesia, in Thailand, and in New Zealand, which rolled
out the model of a modern central bank in nineteen ninety.
(11:32):
The government has really done some things to bring the
bank to heal. So look, this is not God given. Okay.
If you look at the US Constitution actually says nothing
about the Federal Reserve. Congress has delegated the power to
set monetary policy to the Federal Reserve. And I'll just
one other thing. I'm not defending Trump. Political pressure on
(11:56):
the FED has historically been misunderstood. Certainly the decade I
spint in Washington, the thing the FED worried about the
most was political approsure from the Congress and changes to
the Federal Reserve Act.
Speaker 2 (12:12):
Okay, Daniel, thank you so much for being with us
this morning, Blueberg opinion columnist Daniel Moss. And yet, of
course the markets are concerned about this. A lot of
our opinion writers, including Daniel, have got pieces on the
Blueberg terminal for you, including John Authors about the worries
of what it would do immediately to markets werepal.
Speaker 3 (12:30):
To be dismissed.
Speaker 4 (12:32):
Well, the UK's chancer Rachel Reeves is in Washington this
week for the International Monetary Fund and World Bank Spring meetings.
She'll be meeting with the US Treasury secretaries, got best
and to push for a UK US trade deal. Our
UK correspondent Lizzie Burden is here with us to help
us look ahead to that. Lizzie, the world is staring
into a trade war, abyss. The IMF will release its
(12:54):
new economic forecasts today.
Speaker 3 (12:55):
What should we.
Speaker 1 (12:56):
Expect, Well, it's set to lower its outlook for growth today.
And remember but the IMF's projections actually later on tend
to have proved optimistic about crises when you look back.
So whatever they say today, the is going to be
the impact of tariffs. The reality is likely to be
a lot worse. But this, of course is going on
just a few blocks from the White House, and this
(13:17):
is the first gathering of all of these ministers in
the US capital since Donald Trump's inauguration as US President
in January, so that adds another edge to these discussions.
Speaker 2 (13:29):
What's Reeve's hoping to get from the trip though, in particular,
there is also the trade deal and the UK's relationship
with China. Reeves was talking only a few days ago
about cutting ties with China would be foolish.
Speaker 1 (13:41):
Yeah, if I can thread all those things together. So
she's going to be lobbying the US Trade Secretary, Treasury
Secretary Scott best Sent for a trade deal. You had
Donald Trump and Keir Starmer speaking on Friday. Officials though
trying to temper expectations about what Reeves can get out
of best Sent this week. It's really about improving the
mood music for now. But this is her first time
(14:01):
meeting him in person. Now he's seen here in London
as one of the less hard line voices in the
Trump administration and the focus of ministers and the UK
ambassador to Washington, Peter Mandelson, Lord Mandelson, is very much
to persuade Donald Trump to try and cut his twenty
five percent global tariff on car and steel imports, and
(14:22):
as you say, also to get a trade deal. Now,
Reeves's team of stress that the UK is not just
going to give away anything to get that trade deal
over the line. They might be prepared to cut the
Digital services tax, which of course hits US tech companies.
They may cut tariffs on some US meat and seafood exports,
but Kirstarmer, the Prime Minister, has ruled out relaxing food
(14:43):
safety standards because of course there are huge fears about
chlorinated chicken and hormone hormone fed beef here in the UK.
It would send the UK newspapers absolutely mad if those
things gone over the line, and it could jeopardize closer
ties with the EU. And remember Kirstarmer on May the
nineteen is hosting this UK EU summit to reset trade
(15:03):
and security ties post Brexit. Then there's the China element,
and as you say, Rachel Reeve's telling the Telegraph newspaper
over the weekend that it'd be foolish to buckle to
Donald Trump's pressure to limit the UK's dealings with China.
So a lot of plates to spin for the team
in Washington this week.
Speaker 4 (15:21):
But perhaps also a chance for Rachel Reeves to get
away from some of the big fiscal questions that are
persisting at home. Already speculation over what she might do
in the next budget.
Speaker 1 (15:29):
Yeah, it has been a theme for this labor government
to focus on the perhaps easier, could you believe it,
international picture than what's going on at home. We know
that she's so fiscally strained, but she has pledged that
she is not interested in a wealth tax at the
upcoming autumn budget. She says that the capital gains tax
changes that they made last autumn are pretty much where
(15:51):
they need to be. But of course we know that
she only left the same amount of headroom as she
did last autumn nine point nine billion pounds, so there's
lots of splation about tax rises and she's ruled out
breaking her fiscal rules, so it only leaves spending cuts
off that her cream vanishes again.
Speaker 4 (16:09):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:15):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 4 (16:21):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:27):
Our flagship New York station is also available on your
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Speaker 3 (16:34):
I'm Caroline Hepka and I'm Stephen Carroll.
Speaker 4 (16:36):
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 Day baker At podcast, available every
morning on Apple, Spotify or whatever you listen. It's Tuesday,
the twenty second of April. Here in London. I'm Caroline
Hipkot and.
Speaker 3 (00:18):
I'm Stephen Carroll.
Speaker 4 (00:19):
Coming up today, Donald Trump demands an immediate rate cut
from Fed charge Jerome Powell as investors flee US docs,
bonds and the dollar amid growing Sell America momentum a.
Speaker 2 (00:30):
Two trillion dollar tariff hit. Bloomberg crunches the numbers on
the cost of the US president's global.
Speaker 3 (00:37):
Levies plus the art of the deal.
Speaker 4 (00:39):
Rachel Reeves vows to put the UK front and center
as she prepares for face to face talks with her
US counterpart, Scott Bessant.
Speaker 2 (00:46):
Let's start with the roundup of our top stories.
Speaker 4 (00:49):
US markets have sold off amid renewed attacks from President
Trump on Federal Reserve charg Jerome Powell. In his latest
broadside against the central Bank, Chief Trump warned the economy
could slow unless quote mister too late, a major loser
lower's interest rates.
Speaker 3 (01:05):
Now.
Speaker 4 (01:06):
Bloomberg reports that Trump has privately questioned advisors about the
possibility of removing Powell, though some administration officials have cautioned
him against such a move. Economists widely expect Trump's tariffs
to boost inflation and slow growth, even if just temporarily.
Former Federal Reserve economists Claudia Sam says markets need to
be alive to the possibility of the White House trying
(01:28):
to remove Powell.
Speaker 5 (01:29):
I take it very seriously, and I you know, this
administration has taken steps, whether it's with the tariffs or
with downsides in the government that really were, you know,
beyond expectations. So I you know, the unthinkable is thinkable
with this administration.
Speaker 4 (01:44):
Thadia Sam, speaking there after Federal Reserve Charge your own.
Powell again stressed last week that the Center Bank must
ensure tariffs don't trigger a more persistent rise in inflation.
Speaker 2 (01:55):
Trump's escalating frustration with the Fed chair has triggered a
broad fly from US stocks, bonds, and the dollar has
traders grow increasingly uneasy with the administration's policy approach. A
key gauge of the greenback is on track for a
fourth straight day of losses as sentiment on Wall Street
shifts from optimism to what some are calling a cell
(02:16):
America mood. Apollos Chief economist Torston Slock says the US
economy is facing an ever growing list of headwinds.
Speaker 1 (02:26):
It's just not only terms and retaliation, which of course
are the most important ones. It's also corporate confidence is
very low. The Conference Board measures and also the CEO
index measure from various sources and CFO measures going lower.
Speaker 3 (02:41):
KAPEX plans are also grinding lower.
Speaker 5 (02:43):
Literally for the last two months, and because of course,
consumer confidence is also at the lowest level.
Speaker 3 (02:48):
Literally in decades.
Speaker 2 (02:49):
Apollos Chief economists Torston Slock speaking there as investors continue
to pile into gold amid increasing market uncertainty. The precious
metal has now hit yet another code, topping three four
hundred and forty four dollars an ounce following a two
point nine percent search on non day.
Speaker 4 (03:08):
Donald Trump's trade tariffs and it's the beginning of April,
will shave about two trillion dollars off the global economy
by the end of twenty twenty seven, according to a
new estimate from Bloomberg Economics. The effects of the trade
war hanging over the world's economic leaders as they gather
of the IMF and World Bank Spring meetings in Washington,
Saxo Banks Chief Investments strass Charity Sanana says, the shape
(03:29):
of the shock is still unclear.
Speaker 6 (03:31):
Will it be a growth shock, will it be an
inflation shock? So some kind of an he went driven
you know issues maybe resulting in a kind of a
cyclical issue, some kind of a recession or a saculation, whatever.
Speaker 3 (03:42):
It might be.
Speaker 6 (03:44):
But now we're just mophing it into a structural one,
you know, with the kind of questions that it raises
on the credibility you know of the US and usc.
Speaker 4 (03:52):
ASCID Saxo Banks Chief Investment Strategies Charity Sanana, there the
tariff moves that brought into question US economic answer, security leadership,
and the multilateral rules based system symbolized by institutions like
the International Monetary Fund.
Speaker 2 (04:06):
Many leaders will be using the IMF gathering as an
opportunity for trade talks with the US government. UK Chancellor
Rachel Reeves is one of the finance ministers flying to
Washington to make the case for free trade. She's expected
to meet with US Treasury Secretary Scottan Bessen for the
first time there.
Speaker 4 (04:24):
The United States has announced new tariffs on solar panel
imports from Cambodia, Vietnam, Malaysia and Thailand. The levies could
be more than three thousand, five hundred percent the culmination
of a trade probe started by former President Joe Biden.
Many Chinese manufacturers had set up operations in Southeast Asia
after they were hit by similar tariffs twelve years ago.
(04:44):
The tariffs are likely to boost US domestic manufacturing but
increase the cost of ramping up renewable energy production.
Speaker 2 (04:52):
To other news, a paper conclave is now due to
decide on Pope France's successor after he passed away on
Eastern Monday. The College of Cardinals will meet in about
two weeks time, when around one hundred and thirty five
members will cast their vote. Amongst those traveling to Rome
for the proceedings will be the Archbishop of Westminster, Cardinal
Vincent Nichols, who says that Francis will be remembered fondly his.
Speaker 7 (05:16):
Commitment to the individual and to the people on the
edges of society, who is unquestioned, but he also fashioned
that in a way directed to those who hold the
power and generate the world.
Speaker 2 (05:31):
The Archbishop of Westminster, speaking there, the election could threaten
what Pope France's supporters see as his legacy as a
reforming pope if a more conservative candidate is chosen and
moves the Church away from his positions on issues such
as LGBTQ rights.
Speaker 4 (05:49):
American, European and Ukrainian officials are due to hold talks
in London tomorrow as the White House pushes for a
deal to hold Russia's invasion, whom We're understands. The US
ecritaristic Marco Rubio and special envoys are expected to meet
foreign ministers and advisors from France, Germany, the UK and Ukraine.
The gathering is intended as a follow up to meetings
(06:09):
in Paris last week, where the US shared proposals to
enable a ceasefire and peace agreement between Russia and Ukraine.
Speaker 2 (06:17):
Those are top stories for you this morning. Let's look
at the markets at the Bloomberg Dollar Spot index losing
ground again for a fourth day in a row. There
had been some early gains, but those seem to have evaporated.
The Bloomberg Dollar spot indexes currently down a tenth of
one percent, the yenner one hundred and forty handle, the
euro edging higher about a tenth almost two tenths of
one percent this morning US stock futures are actually in
(06:39):
the green after the plunge that we saw on Monday.
Asian equities and mixed Chinese tech shares drifting in Hong
Kong this as we see the Topics Index upper tenth
and the Nikky slightly lower this morning. As for oil prices,
WTI crud futures climbing one percent this on. In gold
(07:01):
up one point seven percent, so we're actually approaching the
thirty five hundred dollar mark four hundred and eighty two,
and looking at the bond market as tenny USC is
at four forty three, up by two basis points. Those
are the markets.
Speaker 4 (07:13):
In a moment, we'll bring you more on the pressure
on Jerown Powell. Plus Rachel Reeves heads to Washington for
those IMF and World Bank meetings in the shadow of
Trump's tariffs.
Speaker 3 (07:22):
But another story that we've caught our eye this morning.
Speaker 4 (07:25):
The author Rachel Gisa has been writing for BusinessWeek about
a topic that she's written a book about as well.
Speaker 3 (07:31):
But this is to do with the title is.
Speaker 4 (07:34):
Building a Better Man of Sphere, but something that's being
reflected on as the particularly masculine approach to policy that's
been taken under the Trump administration.
Speaker 2 (07:42):
Yeah, sort of hyper aggressive manhood, but not the sort
of masculine world let's say Ronald Reagan where it's kind
of tough sheriffs, that sort of part of Familia's type
of world that Rachel describes. In fact, she talks about
the men in the inner circle of Donald Trump, Elon
Musk and JD. Vance and Mark Rubio and Pete Hegser
(08:04):
than others not being actually in the kind of traditional
American archetypal sort of mode, but actually forming this kind
of insecure model of masculinity. She says that the manuscript
online doesn't have to be like that, that there could
be a kind of another another way, and she brings
out some really interesting statistics that for example, Goat, which
(08:27):
is a research firm, finds that young men in the
US a quarter of them follow fashion influencers, thirty percent
are into film and theater and acting. So that there
could be a kind of much broader Internet that you
could respond to young men's desires for that connection.
Speaker 4 (08:42):
It's not that the Internet as bad, articles that there
are bad parts of the Internet, and perhaps what we
need to be able to do is support boys and
young men in I suppose finding the diversity that's out
there as well, rather than necessarily falling into.
Speaker 3 (08:57):
Some of the murkier part of it. But it's a
really interesting reader.
Speaker 4 (09:00):
You'll find it at Bloomberg dot com and on the terminal,
and if you're listening to the Bloomberg Daybreak You're a podcast,
you'll find a link to the article in our show notes.
Speaker 2 (09:08):
Now to the markets we have seen world swings or
markets as traders face a new source of uncertainty? Will
Donald Trump tie to removed your own Powell as the
chair of the Federal Reserve?
Speaker 3 (09:18):
Butlin a big opinion.
Speaker 2 (09:19):
Columist Daniel mos Jones is now to discuss, Daniel, Good Morning,
how precarious do we think Powell's position is now?
Speaker 8 (09:27):
I want to go back to a remark that Claudia
sam made on air just a few minutes ago. She says,
it's a very real possibility. I agree, it certainly is
a possibility. Now does that make it a probability? I
don't know. If you look at the way markets have
behaved since Thursday morning, US time, when Trump resumed his
(09:52):
threats to get rid of Powell, it's that there's been
in abeyance for a little while the reaction has been
a swift and punishing so as the folks at ISI
ever Core have asked, if you liked the market reaction
to the tariffs, get ready for something very special In
(10:13):
the event, Powell is dismissed.
Speaker 4 (10:16):
In context of central bank independence, though, is there's a
bigger thrast than what we've seen before. It's not the
first time we've heard, but it's got crestsism of central bankers.
Speaker 8 (10:27):
Trump has been the first president in some decades to
openly take on the FED. What we tend to forget
is prior to the Clinton administration this was very widespread.
One of the things that Bob Ruben imposed on the
Clinton white House was we don't criticize the FED the
(10:48):
otherwise we believe in a strong ballot or so much
for that one. You know, Look, central banking history is
full of anecdotes about pressure that people like Richard Nixon,
like Lyndon Johnson, like others brought to bear. There was
a wartime monetary policy that existed under FDR and Harry Truman.
(11:10):
In Asia, central bank independence is slightly less tootemic, but
it is questioned. Nonetheless, serious questions have arisen about independence
in Indonesia, in Thailand, and in New Zealand, which rolled
out the model of a modern central bank in nineteen ninety.
(11:32):
The government has really done some things to bring the
bank to heal. So look, this is not God given. Okay.
If you look at the US Constitution actually says nothing
about the Federal Reserve. Congress has delegated the power to
set monetary policy to the Federal Reserve. And I'll just
one other thing. I'm not defending Trump. Political pressure on
(11:56):
the FED has historically been misunderstood. Certainly the decade I
spint in Washington, the thing the FED worried about the
most was political approsure from the Congress and changes to
the Federal Reserve Act.
Speaker 2 (12:12):
Okay, Daniel, thank you so much for being with us
this morning, Blueberg opinion columnist Daniel Moss. And yet, of
course the markets are concerned about this. A lot of
our opinion writers, including Daniel, have got pieces on the
Blueberg terminal for you, including John Authors about the worries
of what it would do immediately to markets werepal.
Speaker 3 (12:30):
To be dismissed.
Speaker 4 (12:32):
Well, the UK's chancer Rachel Reeves is in Washington this
week for the International Monetary Fund and World Bank Spring meetings.
She'll be meeting with the US Treasury secretaries, got best
and to push for a UK US trade deal. Our
UK correspondent Lizzie Burden is here with us to help
us look ahead to that. Lizzie, the world is staring
into a trade war, abyss. The IMF will release its
(12:54):
new economic forecasts today.
Speaker 3 (12:55):
What should we.
Speaker 1 (12:56):
Expect, Well, it's set to lower its outlook for growth today.
And remember but the IMF's projections actually later on tend
to have proved optimistic about crises when you look back.
So whatever they say today, the is going to be
the impact of tariffs. The reality is likely to be
a lot worse. But this, of course is going on
just a few blocks from the White House, and this
(13:17):
is the first gathering of all of these ministers in
the US capital since Donald Trump's inauguration as US President
in January, so that adds another edge to these discussions.
Speaker 2 (13:29):
What's Reeve's hoping to get from the trip though, in particular,
there is also the trade deal and the UK's relationship
with China. Reeves was talking only a few days ago
about cutting ties with China would be foolish.
Speaker 1 (13:41):
Yeah, if I can thread all those things together. So
she's going to be lobbying the US Trade Secretary, Treasury
Secretary Scott best Sent for a trade deal. You had
Donald Trump and Keir Starmer speaking on Friday. Officials though
trying to temper expectations about what Reeves can get out
of best Sent this week. It's really about improving the
mood music for now. But this is her first time
(14:01):
meeting him in person. Now he's seen here in London
as one of the less hard line voices in the
Trump administration and the focus of ministers and the UK
ambassador to Washington, Peter Mandelson, Lord Mandelson, is very much
to persuade Donald Trump to try and cut his twenty
five percent global tariff on car and steel imports, and
(14:22):
as you say, also to get a trade deal. Now,
Reeves's team of stress that the UK is not just
going to give away anything to get that trade deal
over the line. They might be prepared to cut the
Digital services tax, which of course hits US tech companies.
They may cut tariffs on some US meat and seafood exports,
but Kirstarmer, the Prime Minister, has ruled out relaxing food
(14:43):
safety standards because of course there are huge fears about
chlorinated chicken and hormone hormone fed beef here in the UK.
It would send the UK newspapers absolutely mad if those
things gone over the line, and it could jeopardize closer
ties with the EU. And remember Kirstarmer on May the
nineteen is hosting this UK EU summit to reset trade
(15:03):
and security ties post Brexit. Then there's the China element,
and as you say, Rachel Reeve's telling the Telegraph newspaper
over the weekend that it'd be foolish to buckle to
Donald Trump's pressure to limit the UK's dealings with China.
So a lot of plates to spin for the team
in Washington this week.
Speaker 4 (15:21):
But perhaps also a chance for Rachel Reeves to get
away from some of the big fiscal questions that are
persisting at home. Already speculation over what she might do
in the next budget.
Speaker 1 (15:29):
Yeah, it has been a theme for this labor government
to focus on the perhaps easier, could you believe it,
international picture than what's going on at home. We know
that she's so fiscally strained, but she has pledged that
she is not interested in a wealth tax at the
upcoming autumn budget. She says that the capital gains tax
changes that they made last autumn are pretty much where
(15:51):
they need to be. But of course we know that
she only left the same amount of headroom as she
did last autumn nine point nine billion pounds, so there's
lots of splation about tax rises and she's ruled out
breaking her fiscal rules, so it only leaves spending cuts
off that her cream vanishes again.
Speaker 4 (16:09):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (16:15):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 4 (16:21):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (16:27):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 3 (16:34):
I'm Caroline Hepka and I'm Stephen Carroll.
Speaker 4 (16:36):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
Break Europe.
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