August 6, 2025 • 16 mins
On today's podcast:
(1) President Donald Trump said he’d impose increased tariffs on countries buying energy from Russia while clarifying that levies on semiconductor and pharmaceutical imports would be announced “within the next week or so.”
(2) Swiss President Karin Keller-Sutter arrived in Washington to make a last-minute bid for a deal to lower the 39% tariff imposed last week by Donald Trump.
(3) The outlook for Wall Street bonuses is improving, with payouts now set to rise across most sectors of the finance industry as the market rebounds.
(4) President Donald Trump said he would make his decision on a replacement for outgoing Federal Reserve Governor Adriana Kugler this week as he looks to make his imprint on the central bank’s monetary policy.
(5) UK Chancellor of the Exchequer Rachel Reeves is facing a £51 billion ($68 billion) shortfall to fill at the autumn budget, according to a prominent economic think tank that warned she will likely need to break Labour’s pledge not to raise major taxes.
(6) When Novo Nordisk announced it was hunting for a replacement chief executive officer to revive its fortunes, the weight-loss drug maker — whose value has dropped by about two thirds in the past year — could have parachuted in a hot-shot executive from outside.
Podcast Conversation: HelloFresh Is Investing $70 Million to Have AI Help Plan Dinner
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news. This is the Big
Big Daybaqut podcast. Good morning, It's Wenesday, the eighth of August.
I'm Caroline hepkeat in London.
Speaker 2 (00:15):
And I'm Stephen Carroll. Coming up today. Donald Trump focuses
on pharmaceuticals, semiconductors, and India as his next tariff targets.
Speaker 1 (00:23):
Open Aiyes in early talks about a chess sale for employees,
valuing the startup at five hundred billion dollars.
Speaker 2 (00:31):
Plus why more of Europe's biggest companies are picking insiders
as their new CEOs.
Speaker 1 (00:37):
Let's start with a round up of our top stories.
Speaker 2 (00:39):
With less than twenty four hours before Donald Trump's latest
tariffs come into effect, the US President says there are
more levies to come on pharmaceuticals, semiconductors, and countries that
buy Russian oil. Trump says the sector specific tariffs will
be announced within the next week or so. Speaking to CNBC,
the President singled out India for an announcement in the
coming hours.
Speaker 3 (01:00):
We do very very little business with India because their
tariffs are so high. So India has not been a
good trading partner because they do a lot of business
with US, but we don't do business with them. So
we settled on twenty five percent. But I think I'm
going to raise that very substantially over the next twenty
four hours because they're buying Russian oil, they're fueling the
war machine, and are they're going to do that, then
(01:23):
I'm not going to be happy.
Speaker 2 (01:24):
Donald Trump patter that he was close to extending a
trade truce with China, which is due to expire next Tuesday.
Speaker 1 (01:31):
Switzerland's President Currin Calusuta has arrived in Washington to make
a last minute bid for a deal to lower the
country's tariff rate of thirty nine percent. Bloomberg understands that
she flew to DC without a formal invitation from the
White House, hoping to make progress before the new rate
kicks in tomorrow. President Trump's move last week stunned the
(01:54):
Swiss after talks that they had thought looked promising her
shuttle diplomacy for an emergency government meeting where ministers agreed
to present a new offer to the US. Gold, agriculture, planes, drugs,
and energy are some of the areas that may feature
in any talks.
Speaker 2 (02:13):
The S and B five hundred is near all time
highs despite the tariff gloom and the bumper gains will
boost Wall Street bonus pools. Compensation consultant Johnson Associates says
payers are set to rise across the sector as expectations
edge higher. Bloomberg's financi repporter Catherine Dhugherty says, it's not
the usual hotspots.
Speaker 4 (02:31):
It is a good thing for the traders on Wall Street.
Equity trading has seen records in the second quarter that
is translating through to compensation. I mean right now, equity
traders are projected to get as much as a thirty
percent bump. That's the highest across any of the financial
industry that we have seen. The question becomes, does that volatility.
(02:54):
Does the momentum that we've seen through the first half
of the year continue through the.
Speaker 2 (02:58):
Second half to her as the debt traders are also
showing strong performances, but the positive news comes as firms
also look at how AI might help them streamline their
staff and costs and manage expenses.
Speaker 1 (03:12):
President Trump says that he will decide on a replacement
for outgoing Federal Reserve Governor Adrianna Kugler this week. The
FED announced on Friday that Kugler would resign, giving the
President an earlier opportunity to install a candidate sympathetic to
his calls for lower interest rates. Despite Trump's pressure campaign,
Andrew Sheets, global chief of Corporate Credit Research at Morgan Stanley,
(03:35):
says the Fed is still likely to hold rates in
the immediate future.
Speaker 5 (03:40):
On Morgan Stanley's economic forecast, the next couple of months
are going to see inflation tick up and growth tick down.
Growth continue to deccelerate, and we think that puts the
FED in a difficult position. As you mentioned in the
markets are pricing roughly a ninety percent chance of a
September cut. We still think it's more likely that they
do not cut in September, given that.
Speaker 1 (04:02):
Inflation path Morgan Stanley's Andrew Sheets. There, President Trump reiterated
that he is still considering four candidates for the main
posts of FED chair. Whoever is chosen for the open
governor position will also likely be in the running to
lead the bank after Chair Powell's term ends.
Speaker 2 (04:23):
We too some breaking earnings news this hour from Germany's
Commerce Bank, which has reported net interest income that beat
estimates in the second quarter two point zero six billion euros.
Also applied for an up to one billion euro share buyback,
and the commerce bank has a high bar to meet
with these earnings after its strong share performance so far
(04:43):
this year. The stock is up one hundred and six
percent year to date, which is the biggest gainer in
the stock six hundred banks index. It's been boosted by
Germany's fiscal expansion and unicredits interest in the lender.
Speaker 1 (04:56):
Now open Ai is in early talks about a potential
a whole share sale that would value the business at
five hundred billion dollars. Bloomberg understands that the stock would
be available for purchase by current and former employees and
existing investors, including Thrive Capital, who have been asked about
buying some of the employee shares. If the deal goes ahead,
(05:20):
it would elevate open Aiyes on paper price tag to
roughly two thirds its previous valuation stood at three hundred
billion dollars. The move comes following the news last week
that the startup has secured eight point three billion dollars
from a syndicate of investors in a financing round that
was oversubscribed by about five times.
Speaker 2 (05:41):
In the UK, and u assessment from a leading thing
tanks as the Chancellor of the Exchecerator, Reeves is facing
a fifty one billion pound hole to fill in her
autumn budget. The National Institute of Economic and Social Research
has warned the Chancellor may have to break Labor's pledge
not to raise taxes if she wants to make up
for the short slow growth. Higher than expected borrowing and
(06:03):
you turning on planned cuts to welfare benefits has put
Reeves on track for a large hole in the government's
spending plans. NISA is also projicting that uk GDP will
grow by one point three percent this year and one
point two percent next year, though it warns that tax
rises in the autumn would likely weaken the economy.
Speaker 1 (06:21):
Now too, Israel, which is weighing an expansion of its
armed presence in Gaza. Prime Minister Benjamin Netanya who is
considering whether to deploy the Israel Defense Forces into the
twenty five percent of the Palestinian territory not already under
its control. The deliberations come as Israel faces an international
outcry over its near two year long war. The families
(06:44):
of Israeli hostages held captive by Harmassa urging Netanyah, who
not to go through with the offensive. One relative, Nama Shurika,
says that she wants a peaceful resolution.
Speaker 6 (06:56):
We need to get rid of Hamas. That's one hundred
percent right. But I think there is one way to
get the hostages out right now, and it's making a deal. Obviously,
fighting in Gaza, it will put the hostages in danger.
Speaker 1 (07:10):
Nama Schuik speaking there, whose cousin is being held hostage
by Hamas. Several international governments have soaken out against the
spiraling humanitarian toll on Gaza's two million plus population.
Speaker 2 (07:24):
Those are your top stories on the markets this morning.
The MSCI Asia Pacific indexes down is obscuse me, two
tenths of one percent. Eurostocks fifty futures are three tenths
higher this morning. The ten year treasury yield is upper
basis points at four point two two percent, and the
euro just slightly stronger against the dollar in trading today
at one fifteen seventy nine.
Speaker 1 (07:43):
Now, in a moment, we'll bring you more on the
tariff pressure on India and Switzerland ahead of new levies
coming into force tomorrow. Plus also why European companies like Nova,
Nordisk and Reno are picking inside a CEOs to handle
economic turmoil.
Speaker 2 (07:59):
That story been reading this morning from our food editor
Kate Krater about using AI to plan dinner, which is
apparently now also big business as well as something that
I think quite a lot of us might admit to
if we were asked.
Speaker 1 (08:11):
H Yes, I think that meal plan is one of
those jobs that you always need a bit of help with.
But Hello Fresh is apparently spending seventy million dollars on
expanding its menu for subscribers with the help of AI.
So the boss in North America's talked about how it's
going to deliver more restaurant quality ingredients, global flavors, so
higher quality ingredients, bigger portions, but more choice over the
(08:35):
meals and the menus that you can choose over the
course of a week.
Speaker 2 (08:37):
So I sent you the way the AI comes into
this is that the more that you order from this company,
the more they're going to give you Netflix style prompts
of what you might want to cook next. You know,
you enjoyed this lemon chicken, have you tried this other
chicken dish or whatever. But part of it is also
the filtering is based on how essentially how labor intensive
your the recipes that you pick are. So if you're
(08:59):
always picking ones that take five minutes to make, the
AI will guide you towards those.
Speaker 1 (09:05):
Is there any recipe that takes five minutes to make
that counts as cooking sandwich?
Speaker 7 (09:10):
Maybe?
Speaker 2 (09:11):
I think that's probably as close as you might get.
But an inst agreed from Kate Grader, and we'll put
a link to it in our podcast show notes.
Speaker 1 (09:19):
Now, let's bring you up to date on the latest
trade tariff news. This morning, Donald Trump says that he
will raise tariffs on India within twenty four hours over
its Russian gas purchases, while the Swiss president is in Washington,
apparently without an appointment to see the US president. Our
EMEA News director was Lim Matheson joins us this morning
for more Good morning, was So, we've been reporting on
(09:40):
the pressure that is ramping up on India from the
White House. Does Narendra Modi look likely to give in?
Speaker 8 (09:47):
Well, that's going to be the interesting question, because, of course,
it's such a tourn of events between these two leaders
who until recently, you know, very warm, very warm relationship,
almost effusive praise for each other, and suddenly Donald Trump
is really singling out India in all of this particularly
over its purchases of Russian energy, which have continued since
(10:09):
Russia's invasion of Ukraine. He's not really going for China
on this, but he definitely is singling out India and
indicating that he's going to increase penalties on India over that.
And that's on top of the existing tariffs that are
going to be coming onto India and possibly also on
pharmaceutical the pharmaceutical sector also, which would be potentially very
(10:31):
damaging for India. And the question is how does India
respond to this. This suggestion at this point is that
India won't retaliate to it, but equally that they're not
going to give in.
Speaker 7 (10:41):
They're going to hold the ground.
Speaker 8 (10:42):
Perhaps they can make some concessions elsewhere, like many other countries,
look for something to give Donald Trump. But are they
going to back down from purchases of Russian energy? So
far it doesn't seem so. And so the question is
can they find some other thing to give Donald Trump
to make this all go away? And at some point
is that the personal relationship again between Narendra Mody and
(11:05):
Donald Trump, that has to find a way through.
Speaker 5 (11:08):
Well.
Speaker 2 (11:08):
Pharmaceuticals also in focus for Switzerland, but they're facing a
more looming problem, which is the thirty nine percent tariff
due to come in to force tomorrow. The Swiss President's
gone to Washington without an invitation from the White Ayes.
But is she likely to make any progress when it
comes to talks with the US president?
Speaker 8 (11:25):
Well, speaking of personal relationship, she doesn't really seem to
have one with Donald Trump, and that possibly is a
real issue. They had a folk call recently which didn't
appear to go particularly well. He said that he felt
that she came to the conversation with nothing to offer him,
and was she really prepared for that conversation, And so
she doesn't really have the leverage of a long runny
(11:46):
relationship with him, and turning up in Washington added out
also in a way seek here seeking a bet, potentially
seeking a bet with him. And the question is will
he be willing to see her or is it one
of those horrible moments where she turns up in Washington
and doesn't get the meeting it needs to leave again.
(12:06):
And the question of leverage there what can Switzerland offer
Donald Trump? I mean like Chinda has got the advantage
of having rare they've got leverage. Again, what does Switzerland
have in terms of leverage, what can they give him
again to make this all go away? And can they
do something else along the lines of perhaps other sectors
than pharmaceutic course, perhaps agriculture, gold or something.
Speaker 1 (12:29):
Yeah, absolutely, I'm Swiss perhaps also have maybe a unique
issue with the relationship because their presidents are only in
office for one year. It rotates amongst all the cabinet members.
So yeah, really interesting. Wells, Thank you so much for
being with us this morning thinking about what's happening with
the White House. Our EMEA news director Wilson Matheson no Voon.
Speaker 2 (12:49):
Just reports it's latest results today after the weight class
drugs maker has seen it's finally dropped by two thirds
in share price in the last year. It's also one
of a growing number of European companies that have picked
a new CEO and within their own ranks. Reno, Nasley
and Unilever are among the firms that have chosen insiders
for the top job in recent months. Our reporter at
sabah Meddings has been looking into this trend and she
(13:09):
joins us now for more. It's about what are the
common threads among these companies.
Speaker 8 (13:13):
Then I think you've kind.
Speaker 7 (13:15):
Of summed up quite a lot of it there with
your talk on tariffs and also Novo. With the tumbling
share price, it's you know, it's particularly exposing time to
be a chief executive, you know, with headhunters that we
spoke to telling us that this is a period of
unprecedented challenge and a lot of companies that really they're
grappling with consumers under pressure. Perhaps at the start of
(13:38):
the year, you know, they were sort of trying to
get used to the new normal, and now it seems
that things are changing all the time. Boards are now
willing to more willing to pull the trigger. So then
we have seen this this bate of these changes on
the top ranks, and companies need quick change. They are
sort of looking to people, you know, from within their
front benches perhaps to take over. Investors are wondering what
(14:02):
the plan is, and so all of these companies that
you've sort of mentioned there, they've sort of they really
need to get their house in order, and they look
to make a change at the top.
Speaker 1 (14:11):
Yeah, so boards are choosing them from within their own
ranks rather than recruiting outsiders. I mean, you've talked a
little bit there about why there might be advantages to that.
I mean, are companies missing out on an opportunity if
they don't look externally at all? What's the thinking there is?
Speaker 7 (14:29):
There is that risk there and certainly, you know, perhaps
an insider some experts that we spoke to said they
may be a little bit too entrenched in the culture
to make real change. But if you're you know, over
the last five years there's been much more pressure from
investors for boards to really have a known succession plan,
like what does happen if the CEO needs to move suddenly?
If you're recruiting internally, they say that they're a non entity.
(14:52):
You can understand their trek record. They're much more sophisticated
now with kind of tests to make sure they're really
aware of how people react under press share and also,
you know, if you look at you Lever and some
of the other companies, they have brought in quite dramatic
cuts within the company, big reorganizations, and the suggestion is
that someone who already knows the staff known to the
(15:14):
company really well can kind of get get the troops
on board with quite dramatic change and perhaps has that
rapport and has sort of a bit more loyalty within
the company to make those tough decisions and kind of
get people on side with them. You know from Fernando
Fernandez that you leave it.
Speaker 2 (15:29):
For one example, this is Bloomberg Daybreak Europe. You're morning
brief on the stories making news from London to Wall
Street and beyond.
Speaker 1 (15:37):
Look for us on your podcast feed every morning on Apple,
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Speaker 2 (15:43):
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Speaker 1 (15:48):
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Speaker 2 (15:56):
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your day right here on Bloomberg Daybreak Europe
Bloomberg Audio Studios, podcasts, radio news. This is the Big
Big Daybaqut podcast. Good morning, It's Wenesday, the eighth of August.
I'm Caroline hepkeat in London.
Speaker 2 (00:15):
And I'm Stephen Carroll. Coming up today. Donald Trump focuses
on pharmaceuticals, semiconductors, and India as his next tariff targets.
Speaker 1 (00:23):
Open Aiyes in early talks about a chess sale for employees,
valuing the startup at five hundred billion dollars.
Speaker 2 (00:31):
Plus why more of Europe's biggest companies are picking insiders
as their new CEOs.
Speaker 1 (00:37):
Let's start with a round up of our top stories.
Speaker 2 (00:39):
With less than twenty four hours before Donald Trump's latest
tariffs come into effect, the US President says there are
more levies to come on pharmaceuticals, semiconductors, and countries that
buy Russian oil. Trump says the sector specific tariffs will
be announced within the next week or so. Speaking to CNBC,
the President singled out India for an announcement in the
coming hours.
Speaker 3 (01:00):
We do very very little business with India because their
tariffs are so high. So India has not been a
good trading partner because they do a lot of business
with US, but we don't do business with them. So
we settled on twenty five percent. But I think I'm
going to raise that very substantially over the next twenty
four hours because they're buying Russian oil, they're fueling the
war machine, and are they're going to do that, then
(01:23):
I'm not going to be happy.
Speaker 2 (01:24):
Donald Trump patter that he was close to extending a
trade truce with China, which is due to expire next Tuesday.
Speaker 1 (01:31):
Switzerland's President Currin Calusuta has arrived in Washington to make
a last minute bid for a deal to lower the
country's tariff rate of thirty nine percent. Bloomberg understands that
she flew to DC without a formal invitation from the
White House, hoping to make progress before the new rate
kicks in tomorrow. President Trump's move last week stunned the
(01:54):
Swiss after talks that they had thought looked promising her
shuttle diplomacy for an emergency government meeting where ministers agreed
to present a new offer to the US. Gold, agriculture, planes, drugs,
and energy are some of the areas that may feature
in any talks.
Speaker 2 (02:13):
The S and B five hundred is near all time
highs despite the tariff gloom and the bumper gains will
boost Wall Street bonus pools. Compensation consultant Johnson Associates says
payers are set to rise across the sector as expectations
edge higher. Bloomberg's financi repporter Catherine Dhugherty says, it's not
the usual hotspots.
Speaker 4 (02:31):
It is a good thing for the traders on Wall Street.
Equity trading has seen records in the second quarter that
is translating through to compensation. I mean right now, equity
traders are projected to get as much as a thirty
percent bump. That's the highest across any of the financial
industry that we have seen. The question becomes, does that volatility.
(02:54):
Does the momentum that we've seen through the first half
of the year continue through the.
Speaker 2 (02:58):
Second half to her as the debt traders are also
showing strong performances, but the positive news comes as firms
also look at how AI might help them streamline their
staff and costs and manage expenses.
Speaker 1 (03:12):
President Trump says that he will decide on a replacement
for outgoing Federal Reserve Governor Adrianna Kugler this week. The
FED announced on Friday that Kugler would resign, giving the
President an earlier opportunity to install a candidate sympathetic to
his calls for lower interest rates. Despite Trump's pressure campaign,
Andrew Sheets, global chief of Corporate Credit Research at Morgan Stanley,
(03:35):
says the Fed is still likely to hold rates in
the immediate future.
Speaker 5 (03:40):
On Morgan Stanley's economic forecast, the next couple of months
are going to see inflation tick up and growth tick down.
Growth continue to deccelerate, and we think that puts the
FED in a difficult position. As you mentioned in the
markets are pricing roughly a ninety percent chance of a
September cut. We still think it's more likely that they
do not cut in September, given that.
Speaker 1 (04:02):
Inflation path Morgan Stanley's Andrew Sheets. There, President Trump reiterated
that he is still considering four candidates for the main
posts of FED chair. Whoever is chosen for the open
governor position will also likely be in the running to
lead the bank after Chair Powell's term ends.
Speaker 2 (04:23):
We too some breaking earnings news this hour from Germany's
Commerce Bank, which has reported net interest income that beat
estimates in the second quarter two point zero six billion euros.
Also applied for an up to one billion euro share buyback,
and the commerce bank has a high bar to meet
with these earnings after its strong share performance so far
(04:43):
this year. The stock is up one hundred and six
percent year to date, which is the biggest gainer in
the stock six hundred banks index. It's been boosted by
Germany's fiscal expansion and unicredits interest in the lender.
Speaker 1 (04:56):
Now open Ai is in early talks about a potential
a whole share sale that would value the business at
five hundred billion dollars. Bloomberg understands that the stock would
be available for purchase by current and former employees and
existing investors, including Thrive Capital, who have been asked about
buying some of the employee shares. If the deal goes ahead,
(05:20):
it would elevate open Aiyes on paper price tag to
roughly two thirds its previous valuation stood at three hundred
billion dollars. The move comes following the news last week
that the startup has secured eight point three billion dollars
from a syndicate of investors in a financing round that
was oversubscribed by about five times.
Speaker 2 (05:41):
In the UK, and u assessment from a leading thing
tanks as the Chancellor of the Exchecerator, Reeves is facing
a fifty one billion pound hole to fill in her
autumn budget. The National Institute of Economic and Social Research
has warned the Chancellor may have to break Labor's pledge
not to raise taxes if she wants to make up
for the short slow growth. Higher than expected borrowing and
(06:03):
you turning on planned cuts to welfare benefits has put
Reeves on track for a large hole in the government's
spending plans. NISA is also projicting that uk GDP will
grow by one point three percent this year and one
point two percent next year, though it warns that tax
rises in the autumn would likely weaken the economy.
Speaker 1 (06:21):
Now too, Israel, which is weighing an expansion of its
armed presence in Gaza. Prime Minister Benjamin Netanya who is
considering whether to deploy the Israel Defense Forces into the
twenty five percent of the Palestinian territory not already under
its control. The deliberations come as Israel faces an international
outcry over its near two year long war. The families
(06:44):
of Israeli hostages held captive by Harmassa urging Netanyah, who
not to go through with the offensive. One relative, Nama Shurika,
says that she wants a peaceful resolution.
Speaker 6 (06:56):
We need to get rid of Hamas. That's one hundred
percent right. But I think there is one way to
get the hostages out right now, and it's making a deal. Obviously,
fighting in Gaza, it will put the hostages in danger.
Speaker 1 (07:10):
Nama Schuik speaking there, whose cousin is being held hostage
by Hamas. Several international governments have soaken out against the
spiraling humanitarian toll on Gaza's two million plus population.
Speaker 2 (07:24):
Those are your top stories on the markets this morning.
The MSCI Asia Pacific indexes down is obscuse me, two
tenths of one percent. Eurostocks fifty futures are three tenths
higher this morning. The ten year treasury yield is upper
basis points at four point two two percent, and the
euro just slightly stronger against the dollar in trading today
at one fifteen seventy nine.
Speaker 1 (07:43):
Now, in a moment, we'll bring you more on the
tariff pressure on India and Switzerland ahead of new levies
coming into force tomorrow. Plus also why European companies like Nova,
Nordisk and Reno are picking inside a CEOs to handle
economic turmoil.
Speaker 2 (07:59):
That story been reading this morning from our food editor
Kate Krater about using AI to plan dinner, which is
apparently now also big business as well as something that
I think quite a lot of us might admit to
if we were asked.
Speaker 1 (08:11):
H Yes, I think that meal plan is one of
those jobs that you always need a bit of help with.
But Hello Fresh is apparently spending seventy million dollars on
expanding its menu for subscribers with the help of AI.
So the boss in North America's talked about how it's
going to deliver more restaurant quality ingredients, global flavors, so
higher quality ingredients, bigger portions, but more choice over the
(08:35):
meals and the menus that you can choose over the
course of a week.
Speaker 2 (08:37):
So I sent you the way the AI comes into
this is that the more that you order from this company,
the more they're going to give you Netflix style prompts
of what you might want to cook next. You know,
you enjoyed this lemon chicken, have you tried this other
chicken dish or whatever. But part of it is also
the filtering is based on how essentially how labor intensive
your the recipes that you pick are. So if you're
(08:59):
always picking ones that take five minutes to make, the
AI will guide you towards those.
Speaker 1 (09:05):
Is there any recipe that takes five minutes to make
that counts as cooking sandwich?
Speaker 7 (09:10):
Maybe?
Speaker 2 (09:11):
I think that's probably as close as you might get.
But an inst agreed from Kate Grader, and we'll put
a link to it in our podcast show notes.
Speaker 1 (09:19):
Now, let's bring you up to date on the latest
trade tariff news. This morning, Donald Trump says that he
will raise tariffs on India within twenty four hours over
its Russian gas purchases, while the Swiss president is in Washington,
apparently without an appointment to see the US president. Our
EMEA News director was Lim Matheson joins us this morning
for more Good morning, was So, we've been reporting on
(09:40):
the pressure that is ramping up on India from the
White House. Does Narendra Modi look likely to give in?
Speaker 8 (09:47):
Well, that's going to be the interesting question, because, of course,
it's such a tourn of events between these two leaders
who until recently, you know, very warm, very warm relationship,
almost effusive praise for each other, and suddenly Donald Trump
is really singling out India in all of this particularly
over its purchases of Russian energy, which have continued since
(10:09):
Russia's invasion of Ukraine. He's not really going for China
on this, but he definitely is singling out India and
indicating that he's going to increase penalties on India over that.
And that's on top of the existing tariffs that are
going to be coming onto India and possibly also on
pharmaceutical the pharmaceutical sector also, which would be potentially very
(10:31):
damaging for India. And the question is how does India
respond to this. This suggestion at this point is that
India won't retaliate to it, but equally that they're not
going to give in.
Speaker 7 (10:41):
They're going to hold the ground.
Speaker 8 (10:42):
Perhaps they can make some concessions elsewhere, like many other countries,
look for something to give Donald Trump. But are they
going to back down from purchases of Russian energy? So
far it doesn't seem so. And so the question is
can they find some other thing to give Donald Trump
to make this all go away? And at some point
is that the personal relationship again between Narendra Mody and
(11:05):
Donald Trump, that has to find a way through.
Speaker 5 (11:08):
Well.
Speaker 2 (11:08):
Pharmaceuticals also in focus for Switzerland, but they're facing a
more looming problem, which is the thirty nine percent tariff
due to come in to force tomorrow. The Swiss President's
gone to Washington without an invitation from the White Ayes.
But is she likely to make any progress when it
comes to talks with the US president?
Speaker 8 (11:25):
Well, speaking of personal relationship, she doesn't really seem to
have one with Donald Trump, and that possibly is a
real issue. They had a folk call recently which didn't
appear to go particularly well. He said that he felt
that she came to the conversation with nothing to offer him,
and was she really prepared for that conversation, And so
she doesn't really have the leverage of a long runny
(11:46):
relationship with him, and turning up in Washington added out
also in a way seek here seeking a bet, potentially
seeking a bet with him. And the question is will
he be willing to see her or is it one
of those horrible moments where she turns up in Washington
and doesn't get the meeting it needs to leave again.
(12:06):
And the question of leverage there what can Switzerland offer
Donald Trump? I mean like Chinda has got the advantage
of having rare they've got leverage. Again, what does Switzerland
have in terms of leverage, what can they give him
again to make this all go away? And can they
do something else along the lines of perhaps other sectors
than pharmaceutic course, perhaps agriculture, gold or something.
Speaker 1 (12:29):
Yeah, absolutely, I'm Swiss perhaps also have maybe a unique
issue with the relationship because their presidents are only in
office for one year. It rotates amongst all the cabinet members.
So yeah, really interesting. Wells, Thank you so much for
being with us this morning thinking about what's happening with
the White House. Our EMEA news director Wilson Matheson no Voon.
Speaker 2 (12:49):
Just reports it's latest results today after the weight class
drugs maker has seen it's finally dropped by two thirds
in share price in the last year. It's also one
of a growing number of European companies that have picked
a new CEO and within their own ranks. Reno, Nasley
and Unilever are among the firms that have chosen insiders
for the top job in recent months. Our reporter at
sabah Meddings has been looking into this trend and she
(13:09):
joins us now for more. It's about what are the
common threads among these companies.
Speaker 8 (13:13):
Then I think you've kind.
Speaker 7 (13:15):
Of summed up quite a lot of it there with
your talk on tariffs and also Novo. With the tumbling
share price, it's you know, it's particularly exposing time to
be a chief executive, you know, with headhunters that we
spoke to telling us that this is a period of
unprecedented challenge and a lot of companies that really they're
grappling with consumers under pressure. Perhaps at the start of
(13:38):
the year, you know, they were sort of trying to
get used to the new normal, and now it seems
that things are changing all the time. Boards are now
willing to more willing to pull the trigger. So then
we have seen this this bate of these changes on
the top ranks, and companies need quick change. They are
sort of looking to people, you know, from within their
front benches perhaps to take over. Investors are wondering what
(14:02):
the plan is, and so all of these companies that
you've sort of mentioned there, they've sort of they really
need to get their house in order, and they look
to make a change at the top.
Speaker 1 (14:11):
Yeah, so boards are choosing them from within their own
ranks rather than recruiting outsiders. I mean, you've talked a
little bit there about why there might be advantages to that.
I mean, are companies missing out on an opportunity if
they don't look externally at all? What's the thinking there is?
Speaker 7 (14:29):
There is that risk there and certainly, you know, perhaps
an insider some experts that we spoke to said they
may be a little bit too entrenched in the culture
to make real change. But if you're you know, over
the last five years there's been much more pressure from
investors for boards to really have a known succession plan,
like what does happen if the CEO needs to move suddenly?
If you're recruiting internally, they say that they're a non entity.
(14:52):
You can understand their trek record. They're much more sophisticated
now with kind of tests to make sure they're really
aware of how people react under press share and also,
you know, if you look at you Lever and some
of the other companies, they have brought in quite dramatic
cuts within the company, big reorganizations, and the suggestion is
that someone who already knows the staff known to the
(15:14):
company really well can kind of get get the troops
on board with quite dramatic change and perhaps has that
rapport and has sort of a bit more loyalty within
the company to make those tough decisions and kind of
get people on side with them. You know from Fernando
Fernandez that you leave it.
Speaker 2 (15:29):
For one example, this is Bloomberg Daybreak Europe. You're morning
brief on the stories making news from London to Wall
Street and beyond.
Speaker 1 (15:37):
Look for us on your podcast feed every morning on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 2 (15:43):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (15:48):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (15:56):
I'm Caroline Hepka and I'm Stephen Carroll. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak Europe
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