October 27, 2025 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) The Chinese Communist Party’s official mouthpiece called on the world’s biggest economies to “jointly safeguard hard-won achievements” from their latest trade talks, ahead of a high-stakes meeting between Donald Trump and Xi Jinping.
(2) Top trade negotiators for the US and China said they came to terms on a range of contentious points, setting the table for leaders Donald Trump and Xi Jinping to finalize a deal and ease trade tensions that have rattled global markets.
(3) HSBC will set aside $1.1 billion to cover litigation by investors who lost money in Bernard Madoff’s fraud, the latest global bank to face a significant hit from cases dating back years.
(4) President Javier Milei’s party won Argentina’s midterm vote Sunday, a result that will give the libertarian leader a strong foothold in Congress to continue pursuing aggressive free-market policies that have won praise and a financial lifeline from Donald Trump.
(5) Former Bank of England Governor Mervyn King says the Labour government lacks a coherent economic strategy.
(6) Trading houses, hedge funds and banks are on a hiring spree for specialist gold traders as interest in the metal soars, creating a battle for talent that is driving up pay packages in what has historically been a niche market.
Podcast Conversation: Housekeeper Salaries Top $100,000 as Luxury Furniture Booms
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg
Daybreak Europe podcast. Good morning, It's Monday, the twenty seventh
of October. I'm Stephen Carroll in London. Coming up today,
Top trade negotiators for the US and China tea up
a sweeping trade deal ahead of a meeting between Trump
(00:24):
and she a one point one billion dollar hit. HSBC
joins other lenders and tallying the ballooning costs tied to
Bernie Madoff's Ponzi scheme. Plus why golds bumper returns are
delivering glittering pay packets for specialist traders amid a growing
talent war. Let's start with a roundup of our top stories.
(00:47):
Trade negotiators from China and the United States have reached
a series of agreements covering tariffs, shipping fees, fentanyl, and
export controls. The deals, concluded after two days of talks
in Malaysia, represent a significant easing of tensions following US
threats to impose one hundred percent tariffs on Chinese export
controls on rare earth minerals. US Treasury Secretary Scott Besson
(01:10):
told NBC's Meet the Press that Trump's tariff threats had
been key to securing the terms.
Speaker 2 (01:16):
President Trump gave me a great deal of negotiating leverage
with the threat of the one hundred percent tariffs on
November first, and I believe we've reached some very substantial
framework that will avoid that and allow us to discuss
many other things with the Chinese.
Speaker 1 (01:35):
Scott Beson's speaking to NBC's Meet the Press with President.
She and Trump now expected to sign off on the
agreements later this week when they meet in South Korea.
It will be the first in person meeting between the
two leaders since Donald Trump returned to the White House,
and Donald Trump's been speaking in the past few minutes
aboard Air Force One, saying that nothing has been agreed
(01:56):
yet on China, but feel good is how the President
is describing his sentiment as he approaches that meeting later
in the week toward the news Now, HSBC is setting
aside more than a billion dollars to cover legal costs
related to fraud claims dating back to two thousand and nine.
The bank joins other global firms which have been unexpectedly
(02:17):
hit recently with ballooning costs over decades old litigation. Bloomberg's
Tea out of Bio as More.
Speaker 3 (02:24):
When financier Bernie Madoff's infamous Ponzi scheme fell apart in
two thousand and nine, customer statements reflected about sixty five
billion dollars in non existent investments. To this day, multiple
banks are still defending against litigation related to the case,
including HSBC. The firm has announced it will set aside
one point one billion dollars to cover litigation by investors
(02:47):
who lost money in the fraud. According to a statement
from the lender, the amount will have an impact on
the firm's capital reserves. In London t Bloomberg.
Speaker 1 (02:57):
Radio, the UK's Deputy Prime Minister, David lamb Me says
a convicted sex offender who came into the country illegally
will be deported this week. The asylum seeker Hadouj Kabatu,
was accidentally released from prison on Friday, sparking a manhunt.
He was re arrested on Sunday, but David Lammy says
there will be lessons learned.
Speaker 4 (03:17):
We need to get to the bottom of how this
happened and why it happened. Of course, on behalf of
the public, I want to be reassured that it won't
continue to happen, and that the systems that we put
in place, the checks and balances, are there to reassure
the public.
Speaker 1 (03:33):
Lammie will speak in Parliament later today on the issue.
The incident has embarrassed the government as it tries to
show it can control migration with tougher border policies. A
former Bank of England governor says the Labor government lacks
a coherent economic strategy. Reverend King was asked by Sky
News if he could identify a Labor's economic plan.
Speaker 5 (03:53):
No, I can't, and that's what worries me. And this
is true across a wide range of government policies. What
happens is the be our producers just before the budget
a number one number, and then they look round for
you know what, ideas almost written on the back of
a fat packet about how you can raise an extra
few billionaire or a few billion there. That is not
(04:14):
coherent tax strategy and you could do a great deal
by thinking it through first.
Speaker 1 (04:19):
Mervin King was Governor of the UK Central Bank from
two thousand and three to twenty thirteen. He also took
aim at decades of what he described as tinkering with
the tax system. This as the Chancellor is preparing her
November budget, with businesses and the wealthy bracing for higher taxes.
In Argentina, President Hamlay's party is one mid term elections
(04:40):
and a major comeback for the libertarian leader. With more
than ninety percent of ballots counted, La Libertada Vansa has
over forty percent of the vote, well ahead of the
main opposition party. The victory follows a landslide defeat in
last month's local elections in Buenos Aires. That loss had
sparked concerns over Malay's political strength, triggering a sell off
in the peso and leading the United States to extend
(05:02):
a twenty billion dollar swap line to support the currency.
Addressing supporters, Malay said voters have now rejected what he
called the model of failure.
Speaker 6 (05:13):
Argentinians showed that they don't want to return to the
model of failure, to the model of inflation, to the
model of monetary issuance, to the model of the useless state,
to the model of insecurity. Argentinians told populism to stop
populism never again.
Speaker 1 (05:31):
President have Emla there speaking via a translator, and in
the midterm results secure enough seats for him to preserve
his veto power and advance plans for sweeping economic reforms.
French authorities have arrested several people over the heist at
the Louver Museum in Paris. The city's prosecutor says one
of those detained was planning to free the country. According
(05:53):
to local media reports, two of the suspects are experienced
burglars and they have been acting on orders. Police van
hunt for four people who broke into the Louver in
broad daylight just over a week ago. They stole eight
pieces of jewelry, including necklaces, trs and earrings. It remains
unclear if the stolen jewels have been recovered. And those
are our top stories on the markets. The MSCIASA Pacific
(06:14):
Index up by one and a half percent. Eurostocks fifty
features are six tents higher this morning. The tenure treasury
yield up three and a half basis points now to
four point zero four percent. Gold prices are sliding seven
tents this morning four eighty three dollars a barrel. Copper
futures though by one point eight percent, and oil prices
have been rising as well on the back of those
(06:34):
latest US China headlines. Just looking at the latest that
we're hearing from the US President talking about he's going
to have a great talk with she saying he thinks
they'll have a successful transaction with the Chinese president and
we might sign a final deal on TikTok on Thursday.
Those are some of the latest comments we've had out
of the US President. Now, in a moment, we'll bring
(06:57):
you up to date on the US China trade, plus
tell you how the recent spike in the price of
gold is also driving a hiring spree for traders in
the precious metal. But another story we've been reading this
morning about how housekeeper salaries in the US are now
topping one hundred thousand dollars as luxury furniture booms. So
James Army from Bloomberg Pursuits have been writing about this
(07:19):
and speaking to some of these top tier people and
what it takes to get to their level. One of
them Gina, telling him that you need to know at
art and design because some of the items that you're
cleaning could be irreplaceable. So she says the value of
the pieces has increased greatly, even if it's not the
most well known artists, and that high end houses have
crazy prices and almost everything, So it's not just the
(07:40):
complexity of the materials themselves. It could be mixes of
metals or woods or glass, or a variety of synthetics,
and she says she has to research everything before she
touches it as well. This is also meaning that some
of the specialist companies in this area are also finding
their services in high demand. James spoke to Charles McPherson
in Toronto, who trains in places staff in households around
(08:01):
the world. He offers a five week training course on
everything from communication to security. This, of course, of the
value of some of these precious furniture items have risen
as well, so the salaries of the people employed to maintain
them are going up to It's a great insight into
this industry. You can read the piece on Bloomberg dot
com and we'll put a link to it in our
poscast show notes as well.
Speaker 4 (08:22):
Well.
Speaker 1 (08:22):
Let's bring you some more now in those latest to
US China trade talks, after negotiators reached agreements on a
range of issues ahead of the meetings of President Trump
and She later this week. A little earlier, I spoke
to Bloomberg' Jenny marsh who leads our team covering China's
economy and government, and I started by asking her for
the details of what was agreed over the weekend. So
the details of.
Speaker 7 (08:42):
The moment are very vague. What we do know is
that both sides they had these two days of talks
in Malaysia actually sort of much shorter in length and
mostne and other rounds, so they seem to have come
to the conclusions quite quickly. But they came out say
that they come to terms basically on a range of
contentious points, and so this covered export controls, fentanel, shipping levees,
(09:03):
and they also talked about sort of agricultural purgators as well,
and said that the final details of the TikTok deal
had also been sort of on the negotiating table, so
it was a very wide ranging sort of group of topics.
They didn't give as many sort of specifics other than
scot Percent did say after the talks rapped that the
(09:24):
Chinese said on their latest rare earth curbs, which have
been so controversial, they had pledged to defer those by
one year. So that's a fairly big concession there from
the Chinese, as revealed by the US side, We don't
have confirmation from Beijing.
Speaker 1 (09:41):
How does this set us up then for the meeting
between Presidents Trump and She is the conciliatory tone being
matched on both sides.
Speaker 7 (09:50):
It is it is. I think this sets us up
very well for the meeting between the two leaders. We
now sort of know what they're going to be talking about.
They're kind of just going to be signing off on
these areas, you know. And even the People's Daily, which
is the Communist Party's mouthpiece, had a commentary this morning
which was very dubbish in tone and really sort of
talking about how successful it is when the two sides
(10:12):
come together to use this sort of trade talks mechanism
they've set up, and calling on the US to sort
of jointly safeguard these hard won achievements and saying they
should be cherished. The context there, of course, is that
after previous roundst of trade talks, you know, they've both
gone back to their respective countries feeling like everything was
sorted out, and then the US Commerce Department has sort
(10:33):
of announced export controls and that's really angered the Chinese
over the last few months because that these sort of
extra controls have been outside the scope of these talks,
and what China really wants is for everything they are
talking about in terms of trade now to run through
this mechanism and to be able to manage it that
way so they're not caught by surprise by sort of
(10:55):
additional measures.
Speaker 1 (10:58):
So where do we watch for the key air is
now that where further developments could happen as we count
down to that meeting. Are there subjects which could derail
the progress that has been made over the weekend?
Speaker 7 (11:10):
I mean, never say never, right And you've got Trump,
percent and Marco Rubio all in the region right now
for Asian and APEC meetings, so they're all going to
be talking to the press and briefing, and I think,
you know, if any of them come out and say
anything particularly offensive towards the Chinese, that would be bad.
I think if if US Commerce Department this week, you know,
(11:31):
if Lutnick, Sydney and Washington decides to sort of Recabot
by rolling out some more sort of curves on Huawei
or something, that would be very very bad. That potentially
has even derailed the meeting between Trump and She. I
think at this point that isn't going to happen. And
everyone sort of worked very hard to get to where
they are now, and it looks like we're sort of
going to be reasonably smooth saling going into that meeting
(11:53):
on Thursday that Spinberks.
Speaker 1 (11:55):
Jennie marshallely is our team covering China's economy and government.
Stay with us. More from Bloomberg Daybreak Europe coming up
after this. Now, trading houses, hedge funds, and banks are
on a hiring spree for specialist gold traders as interest
in the metal source. It's creating a battle for talents
that's driving up pay packages and what has traditionally been
(12:16):
a niche market our metals and mining reporters. Sobella grows
joins us now for more. It's great to talk to you.
Is this surgeon hiring them all down to the surge
in gold prices.
Speaker 8 (12:27):
Partly, it's been an unprecedent year in gold and all
of the other precious metals really, and I've been speaking
to traders and they've been telling me they've been seeing
unprecedented demand from clients new clients have never really dealt
with before, including large corporations and multiple family offices. And
he said, just the level event one of the traders
I spoke with the other day, so it's just far
(12:49):
from normal. But on the other hand, what the trading
houses and hedge funds are really looking to exploit I
think in the current market is the fact that we've
seen huge priced dislocations on several occasions this year between
key trading hubs, which opens up very lucrative arbitrage opportunities. Obviously,
(13:10):
the beginning of the year, traders were very worried that
precious metals would be hit with US tariffs. Some of
those fears are still in the market for silver, platinum, palladium.
But basically what we're seeing is huge arbitrage opportunities open up,
and that's why all of these big physical trading houses
and the hedgephones want to come in and exploit those opportunities.
Speaker 1 (13:31):
So how easy or difficult is it then to hire
gold traders?
Speaker 8 (13:35):
I guess historically the market's been really dominated by a
small handful of banks. Probably the two most well known
ones are JP Morgan and HSBC. I think in previous years.
You know, I've been talking to traders who've been in
the market a long time, and they've kind of expressed
sort of sentiments along the lines of banks have sort
(13:58):
of stepped away from the market underinvested in their team,
so effectively, what we're looking at today is a lot
of these banks have been operating with quite lean teams
and that's left us with a not very deep pool
of talent. Now that prices have saw this year, as
you rightly pointed out at the beginning, you know, new
participates want to take opportunities to break into the sector,
(14:20):
but there aren't that many people to draw upon. So
to give you a sense of how much the backup
really has changed, my colleague Jack Ryan wrote in a
story earlier this month, you know, an average of nearly
six hundred billion dollars worth of spot gold has been
traded each week in London in recent months. That's more
than a threefold increase since twenty twenty one. The other
(14:43):
point I would just make is, you know what the
physical trading houses and hedge funds really want people who
understand the macro force, its forces that really steer what's
happening in precious metals prices, but also just the practicalities
of moving the metal around, because that's really where the
probably the biggest opportunity is, like exploiting those charge windows.
Speaker 1 (15:07):
So for those people who are already in this area
and skilled, are they rubbing their hands with glee? What
does it mean in terms of the sort of incentives
that they can attract in this area.
Speaker 8 (15:19):
Yeah, that's a great question. A lot of the traders
I've spoken to have been saying, you know, they're being
hit up on a weekly or you know, monthly basis,
even from other participants in the market who are keen
to poach them. So I guess, you know, the world's
their oyster. They've they've got a lot of opportunities. I
guess the most obvious incentive here is, you know, bonuses.
(15:42):
Trading houses and hedgepunts are more willing to pay more.
One of my colleagues spoke with a commodities hedge headhunter,
and you know he mentioned that basically physical trading houses
can get bonuses that are two to three higher times
higher than banks. So you're seeing a huge amount of
turnover at all sorts of levels, and I guess traders
(16:05):
can move around if they don't feel like they're being
properly incentivized.
Speaker 1 (16:09):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London. To Wall Street and beyond.
Speaker 9 (16:15):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:21):
You can also listen live each morning on London Dab Radio,
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Speaker 9 (16:27):
Our flagship New York station, is also available on your
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I'm Caroline Hipka and.
Speaker 1 (16:36):
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
Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg
Daybreak Europe podcast. Good morning, It's Monday, the twenty seventh
of October. I'm Stephen Carroll in London. Coming up today,
Top trade negotiators for the US and China tea up
a sweeping trade deal ahead of a meeting between Trump
(00:24):
and she a one point one billion dollar hit. HSBC
joins other lenders and tallying the ballooning costs tied to
Bernie Madoff's Ponzi scheme. Plus why golds bumper returns are
delivering glittering pay packets for specialist traders amid a growing
talent war. Let's start with a roundup of our top stories.
(00:47):
Trade negotiators from China and the United States have reached
a series of agreements covering tariffs, shipping fees, fentanyl, and
export controls. The deals, concluded after two days of talks
in Malaysia, represent a significant easing of tensions following US
threats to impose one hundred percent tariffs on Chinese export
controls on rare earth minerals. US Treasury Secretary Scott Besson
(01:10):
told NBC's Meet the Press that Trump's tariff threats had
been key to securing the terms.
Speaker 2 (01:16):
President Trump gave me a great deal of negotiating leverage
with the threat of the one hundred percent tariffs on
November first, and I believe we've reached some very substantial
framework that will avoid that and allow us to discuss
many other things with the Chinese.
Speaker 1 (01:35):
Scott Beson's speaking to NBC's Meet the Press with President.
She and Trump now expected to sign off on the
agreements later this week when they meet in South Korea.
It will be the first in person meeting between the
two leaders since Donald Trump returned to the White House,
and Donald Trump's been speaking in the past few minutes
aboard Air Force One, saying that nothing has been agreed
(01:56):
yet on China, but feel good is how the President
is describing his sentiment as he approaches that meeting later
in the week toward the news Now, HSBC is setting
aside more than a billion dollars to cover legal costs
related to fraud claims dating back to two thousand and nine.
The bank joins other global firms which have been unexpectedly
(02:17):
hit recently with ballooning costs over decades old litigation. Bloomberg's
Tea out of Bio as More.
Speaker 3 (02:24):
When financier Bernie Madoff's infamous Ponzi scheme fell apart in
two thousand and nine, customer statements reflected about sixty five
billion dollars in non existent investments. To this day, multiple
banks are still defending against litigation related to the case,
including HSBC. The firm has announced it will set aside
one point one billion dollars to cover litigation by investors
(02:47):
who lost money in the fraud. According to a statement
from the lender, the amount will have an impact on
the firm's capital reserves. In London t Bloomberg.
Speaker 1 (02:57):
Radio, the UK's Deputy Prime Minister, David lamb Me says
a convicted sex offender who came into the country illegally
will be deported this week. The asylum seeker Hadouj Kabatu,
was accidentally released from prison on Friday, sparking a manhunt.
He was re arrested on Sunday, but David Lammy says
there will be lessons learned.
Speaker 4 (03:17):
We need to get to the bottom of how this
happened and why it happened. Of course, on behalf of
the public, I want to be reassured that it won't
continue to happen, and that the systems that we put
in place, the checks and balances, are there to reassure
the public.
Speaker 1 (03:33):
Lammie will speak in Parliament later today on the issue.
The incident has embarrassed the government as it tries to
show it can control migration with tougher border policies. A
former Bank of England governor says the Labor government lacks
a coherent economic strategy. Reverend King was asked by Sky
News if he could identify a Labor's economic plan.
Speaker 5 (03:53):
No, I can't, and that's what worries me. And this
is true across a wide range of government policies. What
happens is the be our producers just before the budget
a number one number, and then they look round for
you know what, ideas almost written on the back of
a fat packet about how you can raise an extra
few billionaire or a few billion there. That is not
(04:14):
coherent tax strategy and you could do a great deal
by thinking it through first.
Speaker 1 (04:19):
Mervin King was Governor of the UK Central Bank from
two thousand and three to twenty thirteen. He also took
aim at decades of what he described as tinkering with
the tax system. This as the Chancellor is preparing her
November budget, with businesses and the wealthy bracing for higher taxes.
In Argentina, President Hamlay's party is one mid term elections
(04:40):
and a major comeback for the libertarian leader. With more
than ninety percent of ballots counted, La Libertada Vansa has
over forty percent of the vote, well ahead of the
main opposition party. The victory follows a landslide defeat in
last month's local elections in Buenos Aires. That loss had
sparked concerns over Malay's political strength, triggering a sell off
in the peso and leading the United States to extend
(05:02):
a twenty billion dollar swap line to support the currency.
Addressing supporters, Malay said voters have now rejected what he
called the model of failure.
Speaker 6 (05:13):
Argentinians showed that they don't want to return to the
model of failure, to the model of inflation, to the
model of monetary issuance, to the model of the useless state,
to the model of insecurity. Argentinians told populism to stop
populism never again.
Speaker 1 (05:31):
President have Emla there speaking via a translator, and in
the midterm results secure enough seats for him to preserve
his veto power and advance plans for sweeping economic reforms.
French authorities have arrested several people over the heist at
the Louver Museum in Paris. The city's prosecutor says one
of those detained was planning to free the country. According
(05:53):
to local media reports, two of the suspects are experienced
burglars and they have been acting on orders. Police van
hunt for four people who broke into the Louver in
broad daylight just over a week ago. They stole eight
pieces of jewelry, including necklaces, trs and earrings. It remains
unclear if the stolen jewels have been recovered. And those
are our top stories on the markets. The MSCIASA Pacific
(06:14):
Index up by one and a half percent. Eurostocks fifty
features are six tents higher this morning. The tenure treasury
yield up three and a half basis points now to
four point zero four percent. Gold prices are sliding seven
tents this morning four eighty three dollars a barrel. Copper
futures though by one point eight percent, and oil prices
have been rising as well on the back of those
(06:34):
latest US China headlines. Just looking at the latest that
we're hearing from the US President talking about he's going
to have a great talk with she saying he thinks
they'll have a successful transaction with the Chinese president and
we might sign a final deal on TikTok on Thursday.
Those are some of the latest comments we've had out
of the US President. Now, in a moment, we'll bring
(06:57):
you up to date on the US China trade, plus
tell you how the recent spike in the price of
gold is also driving a hiring spree for traders in
the precious metal. But another story we've been reading this
morning about how housekeeper salaries in the US are now
topping one hundred thousand dollars as luxury furniture booms. So
James Army from Bloomberg Pursuits have been writing about this
(07:19):
and speaking to some of these top tier people and
what it takes to get to their level. One of
them Gina, telling him that you need to know at
art and design because some of the items that you're
cleaning could be irreplaceable. So she says the value of
the pieces has increased greatly, even if it's not the
most well known artists, and that high end houses have
crazy prices and almost everything, So it's not just the
(07:40):
complexity of the materials themselves. It could be mixes of
metals or woods or glass, or a variety of synthetics,
and she says she has to research everything before she
touches it as well. This is also meaning that some
of the specialist companies in this area are also finding
their services in high demand. James spoke to Charles McPherson
in Toronto, who trains in places staff in households around
(08:01):
the world. He offers a five week training course on
everything from communication to security. This, of course, of the
value of some of these precious furniture items have risen
as well, so the salaries of the people employed to maintain
them are going up to It's a great insight into
this industry. You can read the piece on Bloomberg dot
com and we'll put a link to it in our
poscast show notes as well.
Speaker 4 (08:22):
Well.
Speaker 1 (08:22):
Let's bring you some more now in those latest to
US China trade talks, after negotiators reached agreements on a
range of issues ahead of the meetings of President Trump
and She later this week. A little earlier, I spoke
to Bloomberg' Jenny marsh who leads our team covering China's
economy and government, and I started by asking her for
the details of what was agreed over the weekend. So
the details of.
Speaker 7 (08:42):
The moment are very vague. What we do know is
that both sides they had these two days of talks
in Malaysia actually sort of much shorter in length and
mostne and other rounds, so they seem to have come
to the conclusions quite quickly. But they came out say
that they come to terms basically on a range of
contentious points, and so this covered export controls, fentanel, shipping levees,
(09:03):
and they also talked about sort of agricultural purgators as well,
and said that the final details of the TikTok deal
had also been sort of on the negotiating table, so
it was a very wide ranging sort of group of topics.
They didn't give as many sort of specifics other than
scot Percent did say after the talks rapped that the
(09:24):
Chinese said on their latest rare earth curbs, which have
been so controversial, they had pledged to defer those by
one year. So that's a fairly big concession there from
the Chinese, as revealed by the US side, We don't
have confirmation from Beijing.
Speaker 1 (09:41):
How does this set us up then for the meeting
between Presidents Trump and She is the conciliatory tone being
matched on both sides.
Speaker 7 (09:50):
It is it is. I think this sets us up
very well for the meeting between the two leaders. We
now sort of know what they're going to be talking about.
They're kind of just going to be signing off on
these areas, you know. And even the People's Daily, which
is the Communist Party's mouthpiece, had a commentary this morning
which was very dubbish in tone and really sort of
talking about how successful it is when the two sides
(10:12):
come together to use this sort of trade talks mechanism
they've set up, and calling on the US to sort
of jointly safeguard these hard won achievements and saying they
should be cherished. The context there, of course, is that
after previous roundst of trade talks, you know, they've both
gone back to their respective countries feeling like everything was
sorted out, and then the US Commerce Department has sort
(10:33):
of announced export controls and that's really angered the Chinese
over the last few months because that these sort of
extra controls have been outside the scope of these talks,
and what China really wants is for everything they are
talking about in terms of trade now to run through
this mechanism and to be able to manage it that
way so they're not caught by surprise by sort of
(10:55):
additional measures.
Speaker 1 (10:58):
So where do we watch for the key air is
now that where further developments could happen as we count
down to that meeting. Are there subjects which could derail
the progress that has been made over the weekend?
Speaker 7 (11:10):
I mean, never say never, right And you've got Trump,
percent and Marco Rubio all in the region right now
for Asian and APEC meetings, so they're all going to
be talking to the press and briefing, and I think,
you know, if any of them come out and say
anything particularly offensive towards the Chinese, that would be bad.
I think if if US Commerce Department this week, you know,
(11:31):
if Lutnick, Sydney and Washington decides to sort of Recabot
by rolling out some more sort of curves on Huawei
or something, that would be very very bad. That potentially
has even derailed the meeting between Trump and She. I
think at this point that isn't going to happen. And
everyone sort of worked very hard to get to where
they are now, and it looks like we're sort of
going to be reasonably smooth saling going into that meeting
(11:53):
on Thursday that Spinberks.
Speaker 1 (11:55):
Jennie marshallely is our team covering China's economy and government.
Stay with us. More from Bloomberg Daybreak Europe coming up
after this. Now, trading houses, hedge funds, and banks are
on a hiring spree for specialist gold traders as interest
in the metal source. It's creating a battle for talents
that's driving up pay packages and what has traditionally been
(12:16):
a niche market our metals and mining reporters. Sobella grows
joins us now for more. It's great to talk to you.
Is this surgeon hiring them all down to the surge
in gold prices.
Speaker 8 (12:27):
Partly, it's been an unprecedent year in gold and all
of the other precious metals really, and I've been speaking
to traders and they've been telling me they've been seeing
unprecedented demand from clients new clients have never really dealt
with before, including large corporations and multiple family offices. And
he said, just the level event one of the traders
I spoke with the other day, so it's just far
(12:49):
from normal. But on the other hand, what the trading
houses and hedge funds are really looking to exploit I
think in the current market is the fact that we've
seen huge priced dislocations on several occasions this year between
key trading hubs, which opens up very lucrative arbitrage opportunities. Obviously,
(13:10):
the beginning of the year, traders were very worried that
precious metals would be hit with US tariffs. Some of
those fears are still in the market for silver, platinum, palladium.
But basically what we're seeing is huge arbitrage opportunities open up,
and that's why all of these big physical trading houses
and the hedgephones want to come in and exploit those opportunities.
Speaker 1 (13:31):
So how easy or difficult is it then to hire
gold traders?
Speaker 8 (13:35):
I guess historically the market's been really dominated by a
small handful of banks. Probably the two most well known
ones are JP Morgan and HSBC. I think in previous years.
You know, I've been talking to traders who've been in
the market a long time, and they've kind of expressed
sort of sentiments along the lines of banks have sort
(13:58):
of stepped away from the market underinvested in their team,
so effectively, what we're looking at today is a lot
of these banks have been operating with quite lean teams
and that's left us with a not very deep pool
of talent. Now that prices have saw this year, as
you rightly pointed out at the beginning, you know, new
participates want to take opportunities to break into the sector,
(14:20):
but there aren't that many people to draw upon. So
to give you a sense of how much the backup
really has changed, my colleague Jack Ryan wrote in a
story earlier this month, you know, an average of nearly
six hundred billion dollars worth of spot gold has been
traded each week in London in recent months. That's more
than a threefold increase since twenty twenty one. The other
(14:43):
point I would just make is, you know what the
physical trading houses and hedge funds really want people who
understand the macro force, its forces that really steer what's
happening in precious metals prices, but also just the practicalities
of moving the metal around, because that's really where the
probably the biggest opportunity is, like exploiting those charge windows.
Speaker 1 (15:07):
So for those people who are already in this area
and skilled, are they rubbing their hands with glee? What
does it mean in terms of the sort of incentives
that they can attract in this area.
Speaker 8 (15:19):
Yeah, that's a great question. A lot of the traders
I've spoken to have been saying, you know, they're being
hit up on a weekly or you know, monthly basis,
even from other participants in the market who are keen
to poach them. So I guess, you know, the world's
their oyster. They've they've got a lot of opportunities. I
guess the most obvious incentive here is, you know, bonuses.
(15:42):
Trading houses and hedgepunts are more willing to pay more.
One of my colleagues spoke with a commodities hedge headhunter,
and you know he mentioned that basically physical trading houses
can get bonuses that are two to three higher times
higher than banks. So you're seeing a huge amount of
turnover at all sorts of levels, and I guess traders
(16:05):
can move around if they don't feel like they're being
properly incentivized.
Speaker 1 (16:09):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London. To Wall Street and beyond.
Speaker 9 (16:15):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:21):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 9 (16:27):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hipka and.
Speaker 1 (16:36):
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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