August 4, 2025 • 19 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) President Donald Trump said he will announce a new Federal Reserve governor and a new jobs data statistician in the coming days, two appointments that may shape his economic agenda amid anxiety over the trajectory of global growth.
(2) US stock futures advanced as equity investors took some positives from increased expectations for Federal Reserve interest-rate cuts following Friday’s weak US payrolls data.
(3) As US President Donald Trump has ratcheted up his rhetoric against trading partners in Europe — corporates across the continent are taking notice.
(4) BMW is staging a swift rollout of 40 new or updated models, including the iX3, which will share slick software, high-performance computers, and radically different design cues.
(5) OPEC+ closed a two-year chapter in its oil strategy on Sunday with the last in a series of bumper oil production increases. But it left crude traders with a cliffhanger.
(6) Texas Democratic lawmakers said they left the state in an effort to temporarily block Republicans from redrawing its congressional maps — a redistricting initiative pushed by President Donald Trump.
Podcast Conversation: Healthy Lifestyle Choices Slow Brain Aging: Lisa Jarvis
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 (00:10):
This is the.
Speaker 3 (00:10):
Bloomberg Daybacurate Podcastketborning. It's Monday, the fourth of August. I'm
Caline Hepkea and.
Speaker 4 (00:15):
I'm Stephen Carroll. Coming up today.
Speaker 5 (00:17):
Donald Trump says he'll pick a new FED governor and
data chief within days to key positions for his economic agenda.
Speaker 3 (00:25):
The worst US labor data revision in seven years sparks
a dramatic reversal of market perceptions of the strength of
the American economy.
Speaker 5 (00:34):
Plus, can Europe still be an ev contender? A look
at BMW's plans to challenge Tesla.
Speaker 2 (00:41):
Let's start with a roundup of our top stories.
Speaker 5 (00:43):
US President Donald Trump says he will announce a new
FED governor in the coming days. One of the seven governors,
Adrianna Kugler, said on Friday that she intends to step
down early from her position. The US President has been
putting the Central Bank under unprecedented public and vocal pressure
to cut interest rates. He told reporters he would be
filling Couglar's seat soon.
Speaker 4 (01:05):
Now I have a couple of people in mind.
Speaker 6 (01:07):
I'll be announcing somebody for the filling of the person
that left. A woman left, as you know, who is
a I guess a Biden appointment, either Biden or Obama,
but I think a Biden appointment. And she left early,
and I think she left because she agreed with me
on interest rates, and yet they were on the other
side of the ballpark, right, So I'll be announcing that
(01:30):
probably over the next couple of days.
Speaker 5 (01:34):
Trump's claimed that Kugler agreed with him on the path
of interest rate doesn't chime with her past public comments
on the issue. With Cougler's departure, the President has the
opportunity to appoint a governor who more closely aligns with
his preference for lower interest rates. Any replacement is seen
as likely to take over Jerome Palell's job running the
Central Bank when his term ends in May of next year.
Speaker 3 (01:57):
Now, the changes on the Fed Board would come as
a major negative. Revision to job data has upended views
on the weakness of the US labor market. The revised
figures make the past three months the worse for job
creation in the US since the pandemic. After the report,
the White House fired the Bureau of Labor Statistics boss
(02:17):
Erica Macentarfa. The White House National Economic Advisor Kevin Hassett
told Meet the Press on Sunday the firing was because
the revision was poorly explained.
Speaker 7 (02:28):
The President wants has owned people there so that when
we see the numbers, they're more transparent and more reliable.
And if there are big changes in big revisions, we
expect more big revisions for the job data in September,
for example, then we want to know why.
Speaker 4 (02:42):
We want people to.
Speaker 3 (02:42):
Explain it to us, Kevin Hasset. They're speaking to NBC.
The Shock revision caused a rush into treasuries. The ten
year US yield dropped sixteen basis points on Friday, the
two year yield fell twenty.
Speaker 2 (02:55):
Eight basis points.
Speaker 3 (02:57):
Those moves reflected heightened anticipation of the Federal Reserve cutting
interest rates in September.
Speaker 5 (03:04):
Wall Street banks are losing ground in Europe as US
tariffs of spooked clients. According to Bloomberg Data, companies across
the continent are diversifying their banking relationships away from US
firms due to the levies. European banks are taking advantage
of the extra business. So far in twenty twenty five,
roughly half of eurobond deals from non US companies did
(03:26):
not involve any of the five biggest US banks. That's
up from five percent last year. In sterling bonds, Wall
Street banks didn't participate in almost half of the deals,
compared with sixty four percent of them this year.
Speaker 3 (03:40):
Saudi Arabia and its partners will hike output by five
hundred and forty seven thousand bowels a day in a
bid to reclaim market share in the oil market. OPEC
Plus agreed to sharply increase production in September as part
of its latest effort to reverse supply cuts. It marks
the latest shift of the cartel's strategy from defending prices
(04:02):
to opening the taps. Here is the view of Vandana Harry,
founder of Vandana Insights.
Speaker 1 (04:08):
What the market looks like starting the fourth quarter of
this year and going into next year. I think that's
where right now, the expectations are for a little bit
of a swing back indoor a supply.
Speaker 3 (04:19):
Vandana Insights founder Vandana Harry, speaking there to Bloomberg As
the International Energy Agency for cast a surplus of two
million bows of all per day in the fourth quarter
due to swelling supplies across the US.
Speaker 5 (04:34):
The UK's Financial Conduct Authority is to consultant a scheme
guiding firms on how to compensate customers on missold car loans.
The news comes after a court ruling that will see
firms avoid enormous payouts over ruling a previous judgment. Bloombergs
two at a Bio has more.
Speaker 8 (04:51):
Supreme Court ruling awarded lender is a major reprieve in
the pivotal UK car finance case, but firms could still
be on the hook for at least nine billion pounds.
The FCA is set to consult on a redress scheme
to determine the payments, which they say could plausibly be
as high as eighteen billion pounds, though a lower figure
(05:11):
is more likely. The news comes after the UK's top
court handed a big boost to banks on Friday with
its judgment. Various lenders, including Lloyd's and Santander, have already
taken a hit of about two billion pounds for potential
losses relating to the loans in London. Tiwa Adabaio Bloomberg Radio.
Speaker 3 (05:32):
Democratic lawmakers in Texas say that they have left the
state in order to block Republicans from redrawing congressional maps
in an effort to thwart the redistricting initiative encouraged by
President Donald Trump. Their departure leaves Texas short of the
minimum number of lawmakers required to hold votes. They have
(05:52):
left the state for the Democrat held strongholds of Chicago,
New York, and Boston. Gene Wu, the Democratic leader in
tech Exus's lower House, has said they are quote not
walking out on our responsibilities, but walking out on a
rigged system that refuses to listen to the people we represent.
Eric Holder, chair of the National Democratic Redistricting Committee, says
(06:14):
that Republican efforts to redraw the state were authoritarian.
Speaker 9 (06:19):
We have to understand that the nature of the threat
that has been put upon the country through what they're
trying to do in Texas has really increased the danger
to our democracy, and as a result of that, we've
got to do things that perhaps in the past I
would not have supported.
Speaker 3 (06:36):
Eric Holder speaking that as the Texas Governor, Greg Abbott,
said that they may have committed felonies by departing. According
to the state's attorney general, the district court may decide
if it amounts to an abandonment or forfeiture of elected office.
Speaker 4 (06:52):
Those are your top stories on the markets.
Speaker 5 (06:54):
The mscirishpecific index up six tens of one percent put
a made weakness on stock market, or rather amid the
selloff that we had on stock markets both earlier in
trading and in the Friday session as well after the
US jobs report. Now you eurostocks fifty futures are currently
up by half of one percent, although we did see
a sharp slump on European equities on.
Speaker 4 (07:14):
Friday on the back of the jobs data as well.
Speaker 5 (07:16):
We do see a bit of a bents and yields
as well after the big move lower, and yields too,
so the ten year treasury yield up three basis points
this morning at four point two four percent. The two
year yield, sort's biggest one day drop since December of
twenty twenty three, is up two basis points this morning
at three point seven percent. The Bloomberg Dollars Spot Index
a tenth of one percent week, or the euro starting
(07:38):
the week at one fifteen eighty two.
Speaker 3 (07:40):
Now, in a moment, we'll bring you more on President
Trump naming two new key officials who could shape his
economic agenda and BMW's faster rollout of its new electric vehicles.
But another story is caught our eye this morning, and
it's quite optimistic when it comes to trying to age well.
It's from Bloomberg opinions Jarvis.
Speaker 5 (08:01):
So this was another twist on the idea of if
you just live a healthier lifestyle in general, it will
you'll live better longer. But it's particularly focusing on brain
aging and the risk of dementia and all of the
things that you can do to try and lower that.
And this is based on a new study that has
looked at two thousand participants in their sixties and seventies,
all of whom were at risk of dementia, split them
(08:22):
into two groups, ones at their own priorities, where the
others were given a highly structured program that involved regular exercise,
specific diet at computer based brain games, and lots of
social activities in particular. Now, both groups did see significant
improvements in their cognitive health, but the group that had
the intervention were able to set back their aging clock
(08:44):
by much more. Really interesting to see. Particularly the community
alative element of this has been particularly important that was
seen as having the most benefit for the group that
did get involved in it. The question, of course, is
how much an intensive program that would cost are the
results over the long term sustainable enough that merit the
(09:05):
cost of an invest in a program like this. But
it's something that the American and Alzheimer's Association has been
looking at providing that sort of community support in inten
cities across the US to try and see what sort
of effects that can have over the longer term.
Speaker 2 (09:17):
I think it is so interesting, is it.
Speaker 3 (09:19):
I mean, you said right at the beginning, if you
just do I mean, we know, don't we a lot
of the things that are good for us that we
must you know, eat a healthy done and you know,
get out of That's the thing. Lifestyle changes are so tough.
I really think that this study is so important to
understand what tools you need to do it to put
people around you, puts you in touch with people who
(09:41):
help you on that kind of healthier journey.
Speaker 2 (09:43):
Anyway, I thought it was a really interesting piece.
Speaker 4 (09:46):
We'll put a link to it on our podcast show
notes as well.
Speaker 3 (09:49):
Well.
Speaker 5 (09:49):
Let's bring you more now on those two key appointments
Donald Trump says he'll make in the coming days his
choices for the FED governor position vacated by Adrana Kugler
and the head of the Bureau of labor statistics may
shape his economic agenda. Our senior editor Bill Ferries joins
us Now for more Bill Donald Trump fired the beer
of libor Cystics chief Erica meccinto fire last week's after
(10:10):
last week's week job jobs report and the revisions to
the data as well. And the head of the BLS
is not normally a politicized role, but is this a
sign that that could be changing.
Speaker 10 (10:20):
Yeah, I mean, I think anything is possible. But listen,
the BLS is not one of the you know, really
more high profile agencies. It is, let's just be honest,
it's somewhat of a nerdy place. It is full of
people who have you know, degrees and statistics, economics, and
they're really kind of hardcore math and data folks. So
(10:42):
it's I think there would be some serious questions in
the markets if someone who is really there for or
seen as being there for a political purpose is put
in place the US. The BLS data has long been
kind of a gold standard even internationally, so I think
any damage to that will probably rebound and perhaps hurt
(11:04):
the administration more than it would help.
Speaker 3 (11:07):
Yeah, in terms of the FED, then there's also major
change potentially there because there is now an open governor seat,
and that person could well be the next FED chair.
Speaker 10 (11:21):
Yeah, absolutely. I mean Adriana Kugler's resignation kind of accelerates
the thinking that was taking place at the White House.
She was due to leave in January, so that was
already on the radar, and I think the expectation is that, yes,
someone who will come in and is more sympathetic to
Donald Trump's focus on lowering rates is likely to get
(11:44):
that job and could become the next FED chair. So
you have to think about people like Kevin Hassett, who's
a National Economic Council director. You have to think about
people a former FED governor Kevin Walsh, who might only
want to go back to the job if he knows
that he's going to become the FED share. So those
would be two key names coming up, and I do
(12:05):
think that's between those two jobs that's going to be
the priority one for the administration to focus on.
Speaker 5 (12:12):
This, of course, is coming at a time when the
job's date on Friday gave a bit of a wake
up call, certainly to market. It's about the outlook for
the US economy and how it's adapting to Donald Trump's
policies on the data. These were very stark revisions in particular.
What did we learn from them?
Speaker 10 (12:32):
Yeah, I mean the number the change was huge. So
if you look at May, it was revised down by
one hundred and twenty five thousand jobs. So you had
initially reported one hundred and forty four thousand increase. At
the end it was just an increase of nineteen thousand.
It was roughly similar for June. There's been a problem
with declining participation in some of these surveys, and so
(12:54):
when there's a lot of change going on in the economy,
the data keeps rolling in after that initial report, and
you know, we don't know much more from the BLS
other than they said this was larger than normal. But
it is a big warning shot across the bow of
the Trump economy. Now he's been in office for over
six months, he's got tariffs in place. He just put
(13:16):
a whole new set of tariffs in place. Well, he
announced them last week. They come into effect this week.
That's going to affect the economy. So I think it
is a warning shot about what may lie ahead.
Speaker 3 (13:27):
Yeah, very interesting. Thank you so much Bill for being
with us. I've seen it. Editor Bill Ferries. Do you
think it's worth noting though, that the former BLS head
William Beach, was very critical, saying that it was damaging
to the viewer of labor statistics to have this situation
where the head was far and that he didn't think
that there was any grounds at all for the firing
in his words. But another layer to this story around
(13:51):
the statistics and the job stata in the US.
Speaker 5 (13:54):
Well to BMW now, which is unveiling a range of
new electric vehicles which its CEO says will be the
benchmar of the industry, to big bet by the German
carmaker in a sector that's been dominated by Tesla and
Chinese brands. Bloomberg's Stephanicola, who leads our team covering the
European auto industry, joins us now for more.
Speaker 4 (14:11):
Stephan, good morning.
Speaker 5 (14:12):
Tell us then about the IX three and why is
it such a big deal for BMW?
Speaker 11 (14:18):
Yeah, good morning. So, yeah, it is indeed a really
big deal for BMW, and that's because it's the first
of a new range of electric cars that are really
meant to sort of change the conversation in the competition
against Tesla, but also these Chinese brands that are coming
up byd Shaomi, and it's an SUV that has been
(14:42):
developed for the past few years and it has technology
that you know, within two years is supposed to be
in all of BMW's models.
Speaker 2 (14:52):
So this is really the.
Speaker 11 (14:53):
First of a wave of new electric cars that are
really trying to change the competitive conversation in Europe, in
the US, but also in China.
Speaker 6 (15:05):
Yeah.
Speaker 3 (15:05):
So so as the big question is whether BMW can
compete with Tesla and all the big Chinese brands. I
mean in terms of not just what it looks like
and the kind of computing power inside the car, the price,
I mean, lots of things to think about when it
comes to whether BMW can compete.
Speaker 11 (15:22):
Absolutely, yes, the benchmark the CEO did tell us in
an interview. We went to Munich and we looked at
a camouflaged car and we talked to the BMWC all
of us sipsy. He did say, this is going to
be the benchmark. The car has a range of eight
hundred kilometers with a single charge. That's more than Tesla's
(15:46):
longest range model Y and it also charges faster. So
on that side, you know, they have some good arguments.
The key question will be you know, will the customer
be convinced? Will it have the kind of sexiness that
you have to have with new cars. You know, you
(16:07):
have to have the best software, you have to have
really slick, slick interior, slick design, and of course, you know,
the BMW CEO says that it has all that, but
in the end, it depends if the customer agrees.
Speaker 5 (16:24):
Stephan is not a terrible time to be launching a
new car and and making such a big bet into
electric vehicles given the trade tensions with the US and
with China as well.
Speaker 11 (16:36):
Yes, and no, absolutely, trade tensions are a drag on
most major car makers. BMW has a factory in the US,
it also has a factory in China, or several factories
in China. These factors don't just produce for the local market,
but they also export, so Terras is hitting BMW. However,
(17:03):
it's also kind of an interesting time because Tesla is
weaker than it's been in a while. You know, Elon's
Elon Musk's politics have sort of turned away a lot
of customers in Europe, and you know they haven't Tesla
hasn't issued a new car in quite a while, So yeah,
(17:23):
it's it's also kind of an interesting moment and maybe
there are some some customers up for grabs here that
maybe weren't two years ago.
Speaker 3 (17:33):
What do you think is going to be the biggest
test then for the car? I mean it's going to
be unveiled and everything to the public.
Speaker 11 (17:39):
Yeah, BMW is going to unveil this in September at
the Munich Auto Show. The biggest one of the biggest tests,
if not the biggest test, will be whether this car
can also convince people in China. You know, China the
world's biggest auto market, and the German luxury brands used
(18:00):
to dominate there and combustion engine cars. Now the local
brands dominate on evs. So the biggest test is, you know,
can this car change the conversation that the Western brands
are behind on batteries and software and can compete also
on price, right because you know Tesla, but also the
Chinese local brands are offering their electric cars at really
(18:23):
cutthroat prices, and you know BMW does still want to
make margins and make profits. So it's it's going to
be an interesting conversation and interesting effect to see how
much that car will cost and will be able to
convince Chinese buyers.
Speaker 5 (18:40):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 3 (18:46):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 5 (18:52):
You can also listen live each morning on London Dab Radio,
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Speaker 3 (18:58):
Our flagship New York station is also available on your
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Speaker 2 (19:06):
I'm Caroline Hepka and.
Speaker 4 (19:07):
I'm Stephen Carol.
Speaker 5 (19:08):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the.
Speaker 3 (00:10):
Bloomberg Daybacurate Podcastketborning. It's Monday, the fourth of August. I'm
Caline Hepkea and.
Speaker 4 (00:15):
I'm Stephen Carroll. Coming up today.
Speaker 5 (00:17):
Donald Trump says he'll pick a new FED governor and
data chief within days to key positions for his economic agenda.
Speaker 3 (00:25):
The worst US labor data revision in seven years sparks
a dramatic reversal of market perceptions of the strength of
the American economy.
Speaker 5 (00:34):
Plus, can Europe still be an ev contender? A look
at BMW's plans to challenge Tesla.
Speaker 2 (00:41):
Let's start with a roundup of our top stories.
Speaker 5 (00:43):
US President Donald Trump says he will announce a new
FED governor in the coming days. One of the seven governors,
Adrianna Kugler, said on Friday that she intends to step
down early from her position. The US President has been
putting the Central Bank under unprecedented public and vocal pressure
to cut interest rates. He told reporters he would be
filling Couglar's seat soon.
Speaker 4 (01:05):
Now I have a couple of people in mind.
Speaker 6 (01:07):
I'll be announcing somebody for the filling of the person
that left. A woman left, as you know, who is
a I guess a Biden appointment, either Biden or Obama,
but I think a Biden appointment. And she left early,
and I think she left because she agreed with me
on interest rates, and yet they were on the other
side of the ballpark, right, So I'll be announcing that
(01:30):
probably over the next couple of days.
Speaker 5 (01:34):
Trump's claimed that Kugler agreed with him on the path
of interest rate doesn't chime with her past public comments
on the issue. With Cougler's departure, the President has the
opportunity to appoint a governor who more closely aligns with
his preference for lower interest rates. Any replacement is seen
as likely to take over Jerome Palell's job running the
Central Bank when his term ends in May of next year.
Speaker 3 (01:57):
Now, the changes on the Fed Board would come as
a major negative. Revision to job data has upended views
on the weakness of the US labor market. The revised
figures make the past three months the worse for job
creation in the US since the pandemic. After the report,
the White House fired the Bureau of Labor Statistics boss
(02:17):
Erica Macentarfa. The White House National Economic Advisor Kevin Hassett
told Meet the Press on Sunday the firing was because
the revision was poorly explained.
Speaker 7 (02:28):
The President wants has owned people there so that when
we see the numbers, they're more transparent and more reliable.
And if there are big changes in big revisions, we
expect more big revisions for the job data in September,
for example, then we want to know why.
Speaker 4 (02:42):
We want people to.
Speaker 3 (02:42):
Explain it to us, Kevin Hasset. They're speaking to NBC.
The Shock revision caused a rush into treasuries. The ten
year US yield dropped sixteen basis points on Friday, the
two year yield fell twenty.
Speaker 2 (02:55):
Eight basis points.
Speaker 3 (02:57):
Those moves reflected heightened anticipation of the Federal Reserve cutting
interest rates in September.
Speaker 5 (03:04):
Wall Street banks are losing ground in Europe as US
tariffs of spooked clients. According to Bloomberg Data, companies across
the continent are diversifying their banking relationships away from US
firms due to the levies. European banks are taking advantage
of the extra business. So far in twenty twenty five,
roughly half of eurobond deals from non US companies did
(03:26):
not involve any of the five biggest US banks. That's
up from five percent last year. In sterling bonds, Wall
Street banks didn't participate in almost half of the deals,
compared with sixty four percent of them this year.
Speaker 3 (03:40):
Saudi Arabia and its partners will hike output by five
hundred and forty seven thousand bowels a day in a
bid to reclaim market share in the oil market. OPEC
Plus agreed to sharply increase production in September as part
of its latest effort to reverse supply cuts. It marks
the latest shift of the cartel's strategy from defending prices
(04:02):
to opening the taps. Here is the view of Vandana Harry,
founder of Vandana Insights.
Speaker 1 (04:08):
What the market looks like starting the fourth quarter of
this year and going into next year. I think that's
where right now, the expectations are for a little bit
of a swing back indoor a supply.
Speaker 3 (04:19):
Vandana Insights founder Vandana Harry, speaking there to Bloomberg As
the International Energy Agency for cast a surplus of two
million bows of all per day in the fourth quarter
due to swelling supplies across the US.
Speaker 5 (04:34):
The UK's Financial Conduct Authority is to consultant a scheme
guiding firms on how to compensate customers on missold car loans.
The news comes after a court ruling that will see
firms avoid enormous payouts over ruling a previous judgment. Bloombergs
two at a Bio has more.
Speaker 8 (04:51):
Supreme Court ruling awarded lender is a major reprieve in
the pivotal UK car finance case, but firms could still
be on the hook for at least nine billion pounds.
The FCA is set to consult on a redress scheme
to determine the payments, which they say could plausibly be
as high as eighteen billion pounds, though a lower figure
(05:11):
is more likely. The news comes after the UK's top
court handed a big boost to banks on Friday with
its judgment. Various lenders, including Lloyd's and Santander, have already
taken a hit of about two billion pounds for potential
losses relating to the loans in London. Tiwa Adabaio Bloomberg Radio.
Speaker 3 (05:32):
Democratic lawmakers in Texas say that they have left the
state in order to block Republicans from redrawing congressional maps
in an effort to thwart the redistricting initiative encouraged by
President Donald Trump. Their departure leaves Texas short of the
minimum number of lawmakers required to hold votes. They have
(05:52):
left the state for the Democrat held strongholds of Chicago,
New York, and Boston. Gene Wu, the Democratic leader in
tech Exus's lower House, has said they are quote not
walking out on our responsibilities, but walking out on a
rigged system that refuses to listen to the people we represent.
Eric Holder, chair of the National Democratic Redistricting Committee, says
(06:14):
that Republican efforts to redraw the state were authoritarian.
Speaker 9 (06:19):
We have to understand that the nature of the threat
that has been put upon the country through what they're
trying to do in Texas has really increased the danger
to our democracy, and as a result of that, we've
got to do things that perhaps in the past I
would not have supported.
Speaker 3 (06:36):
Eric Holder speaking that as the Texas Governor, Greg Abbott,
said that they may have committed felonies by departing. According
to the state's attorney general, the district court may decide
if it amounts to an abandonment or forfeiture of elected office.
Speaker 4 (06:52):
Those are your top stories on the markets.
Speaker 5 (06:54):
The mscirishpecific index up six tens of one percent put
a made weakness on stock market, or rather amid the
selloff that we had on stock markets both earlier in
trading and in the Friday session as well after the
US jobs report. Now you eurostocks fifty futures are currently
up by half of one percent, although we did see
a sharp slump on European equities on.
Speaker 4 (07:14):
Friday on the back of the jobs data as well.
Speaker 5 (07:16):
We do see a bit of a bents and yields
as well after the big move lower, and yields too,
so the ten year treasury yield up three basis points
this morning at four point two four percent. The two
year yield, sort's biggest one day drop since December of
twenty twenty three, is up two basis points this morning
at three point seven percent. The Bloomberg Dollars Spot Index
a tenth of one percent week, or the euro starting
(07:38):
the week at one fifteen eighty two.
Speaker 3 (07:40):
Now, in a moment, we'll bring you more on President
Trump naming two new key officials who could shape his
economic agenda and BMW's faster rollout of its new electric vehicles.
But another story is caught our eye this morning, and
it's quite optimistic when it comes to trying to age well.
It's from Bloomberg opinions Jarvis.
Speaker 5 (08:01):
So this was another twist on the idea of if
you just live a healthier lifestyle in general, it will
you'll live better longer. But it's particularly focusing on brain
aging and the risk of dementia and all of the
things that you can do to try and lower that.
And this is based on a new study that has
looked at two thousand participants in their sixties and seventies,
all of whom were at risk of dementia, split them
(08:22):
into two groups, ones at their own priorities, where the
others were given a highly structured program that involved regular exercise,
specific diet at computer based brain games, and lots of
social activities in particular. Now, both groups did see significant
improvements in their cognitive health, but the group that had
the intervention were able to set back their aging clock
(08:44):
by much more. Really interesting to see. Particularly the community
alative element of this has been particularly important that was
seen as having the most benefit for the group that
did get involved in it. The question, of course, is
how much an intensive program that would cost are the
results over the long term sustainable enough that merit the
(09:05):
cost of an invest in a program like this. But
it's something that the American and Alzheimer's Association has been
looking at providing that sort of community support in inten
cities across the US to try and see what sort
of effects that can have over the longer term.
Speaker 2 (09:17):
I think it is so interesting, is it.
Speaker 3 (09:19):
I mean, you said right at the beginning, if you
just do I mean, we know, don't we a lot
of the things that are good for us that we
must you know, eat a healthy done and you know,
get out of That's the thing. Lifestyle changes are so tough.
I really think that this study is so important to
understand what tools you need to do it to put
people around you, puts you in touch with people who
(09:41):
help you on that kind of healthier journey.
Speaker 2 (09:43):
Anyway, I thought it was a really interesting piece.
Speaker 4 (09:46):
We'll put a link to it on our podcast show
notes as well.
Speaker 3 (09:49):
Well.
Speaker 5 (09:49):
Let's bring you more now on those two key appointments
Donald Trump says he'll make in the coming days his
choices for the FED governor position vacated by Adrana Kugler
and the head of the Bureau of labor statistics may
shape his economic agenda. Our senior editor Bill Ferries joins
us Now for more Bill Donald Trump fired the beer
of libor Cystics chief Erica meccinto fire last week's after
(10:10):
last week's week job jobs report and the revisions to
the data as well. And the head of the BLS
is not normally a politicized role, but is this a
sign that that could be changing.
Speaker 10 (10:20):
Yeah, I mean, I think anything is possible. But listen,
the BLS is not one of the you know, really
more high profile agencies. It is, let's just be honest,
it's somewhat of a nerdy place. It is full of
people who have you know, degrees and statistics, economics, and
they're really kind of hardcore math and data folks. So
(10:42):
it's I think there would be some serious questions in
the markets if someone who is really there for or
seen as being there for a political purpose is put
in place the US. The BLS data has long been
kind of a gold standard even internationally, so I think
any damage to that will probably rebound and perhaps hurt
(11:04):
the administration more than it would help.
Speaker 3 (11:07):
Yeah, in terms of the FED, then there's also major
change potentially there because there is now an open governor seat,
and that person could well be the next FED chair.
Speaker 10 (11:21):
Yeah, absolutely. I mean Adriana Kugler's resignation kind of accelerates
the thinking that was taking place at the White House.
She was due to leave in January, so that was
already on the radar, and I think the expectation is that, yes,
someone who will come in and is more sympathetic to
Donald Trump's focus on lowering rates is likely to get
(11:44):
that job and could become the next FED chair. So
you have to think about people like Kevin Hassett, who's
a National Economic Council director. You have to think about
people a former FED governor Kevin Walsh, who might only
want to go back to the job if he knows
that he's going to become the FED share. So those
would be two key names coming up, and I do
(12:05):
think that's between those two jobs that's going to be
the priority one for the administration to focus on.
Speaker 5 (12:12):
This, of course, is coming at a time when the
job's date on Friday gave a bit of a wake
up call, certainly to market. It's about the outlook for
the US economy and how it's adapting to Donald Trump's
policies on the data. These were very stark revisions in particular.
What did we learn from them?
Speaker 10 (12:32):
Yeah, I mean the number the change was huge. So
if you look at May, it was revised down by
one hundred and twenty five thousand jobs. So you had
initially reported one hundred and forty four thousand increase. At
the end it was just an increase of nineteen thousand.
It was roughly similar for June. There's been a problem
with declining participation in some of these surveys, and so
(12:54):
when there's a lot of change going on in the economy,
the data keeps rolling in after that initial report, and
you know, we don't know much more from the BLS
other than they said this was larger than normal. But
it is a big warning shot across the bow of
the Trump economy. Now he's been in office for over
six months, he's got tariffs in place. He just put
(13:16):
a whole new set of tariffs in place. Well, he
announced them last week. They come into effect this week.
That's going to affect the economy. So I think it
is a warning shot about what may lie ahead.
Speaker 3 (13:27):
Yeah, very interesting. Thank you so much Bill for being
with us. I've seen it. Editor Bill Ferries. Do you
think it's worth noting though, that the former BLS head
William Beach, was very critical, saying that it was damaging
to the viewer of labor statistics to have this situation
where the head was far and that he didn't think
that there was any grounds at all for the firing
in his words. But another layer to this story around
(13:51):
the statistics and the job stata in the US.
Speaker 5 (13:54):
Well to BMW now, which is unveiling a range of
new electric vehicles which its CEO says will be the
benchmar of the industry, to big bet by the German
carmaker in a sector that's been dominated by Tesla and
Chinese brands. Bloomberg's Stephanicola, who leads our team covering the
European auto industry, joins us now for more.
Speaker 4 (14:11):
Stephan, good morning.
Speaker 5 (14:12):
Tell us then about the IX three and why is
it such a big deal for BMW?
Speaker 11 (14:18):
Yeah, good morning. So, yeah, it is indeed a really
big deal for BMW, and that's because it's the first
of a new range of electric cars that are really
meant to sort of change the conversation in the competition
against Tesla, but also these Chinese brands that are coming
up byd Shaomi, and it's an SUV that has been
(14:42):
developed for the past few years and it has technology
that you know, within two years is supposed to be
in all of BMW's models.
Speaker 2 (14:52):
So this is really the.
Speaker 11 (14:53):
First of a wave of new electric cars that are
really trying to change the competitive conversation in Europe, in
the US, but also in China.
Speaker 6 (15:05):
Yeah.
Speaker 3 (15:05):
So so as the big question is whether BMW can
compete with Tesla and all the big Chinese brands. I
mean in terms of not just what it looks like
and the kind of computing power inside the car, the price,
I mean, lots of things to think about when it
comes to whether BMW can compete.
Speaker 11 (15:22):
Absolutely, yes, the benchmark the CEO did tell us in
an interview. We went to Munich and we looked at
a camouflaged car and we talked to the BMWC all
of us sipsy. He did say, this is going to
be the benchmark. The car has a range of eight
hundred kilometers with a single charge. That's more than Tesla's
(15:46):
longest range model Y and it also charges faster. So
on that side, you know, they have some good arguments.
The key question will be you know, will the customer
be convinced? Will it have the kind of sexiness that
you have to have with new cars. You know, you
(16:07):
have to have the best software, you have to have
really slick, slick interior, slick design, and of course, you know,
the BMW CEO says that it has all that, but
in the end, it depends if the customer agrees.
Speaker 5 (16:24):
Stephan is not a terrible time to be launching a
new car and and making such a big bet into
electric vehicles given the trade tensions with the US and
with China as well.
Speaker 11 (16:36):
Yes, and no, absolutely, trade tensions are a drag on
most major car makers. BMW has a factory in the US,
it also has a factory in China, or several factories
in China. These factors don't just produce for the local market,
but they also export, so Terras is hitting BMW. However,
(17:03):
it's also kind of an interesting time because Tesla is
weaker than it's been in a while. You know, Elon's
Elon Musk's politics have sort of turned away a lot
of customers in Europe, and you know they haven't Tesla
hasn't issued a new car in quite a while, So yeah,
(17:23):
it's it's also kind of an interesting moment and maybe
there are some some customers up for grabs here that
maybe weren't two years ago.
Speaker 3 (17:33):
What do you think is going to be the biggest
test then for the car? I mean it's going to
be unveiled and everything to the public.
Speaker 11 (17:39):
Yeah, BMW is going to unveil this in September at
the Munich Auto Show. The biggest one of the biggest tests,
if not the biggest test, will be whether this car
can also convince people in China. You know, China the
world's biggest auto market, and the German luxury brands used
(18:00):
to dominate there and combustion engine cars. Now the local
brands dominate on evs. So the biggest test is, you know,
can this car change the conversation that the Western brands
are behind on batteries and software and can compete also
on price, right because you know Tesla, but also the
Chinese local brands are offering their electric cars at really
(18:23):
cutthroat prices, and you know BMW does still want to
make margins and make profits. So it's it's going to
be an interesting conversation and interesting effect to see how
much that car will cost and will be able to
convince Chinese buyers.
Speaker 5 (18:40):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 3 (18:46):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 5 (18:52):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 3 (18:58):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (19:06):
I'm Caroline Hepka and.
Speaker 4 (19:07):
I'm Stephen Carol.
Speaker 5 (19:08):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
Europe
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