Bloomberg Daybreak: Europe Edition Starmer’s Costly U-Turn, Astra's UK Listing Risk, Trump Bill Rebellion Brews
Jul 2, 2025
Jill Deesis, News Desk editor at Bloomberg, dives into the political turmoil surrounding Keir Starmer's retreat on welfare reforms and its impact on the UK government. She discusses Trump’s decision to halt arms transfers to Ukraine amidst the ongoing crisis and his involvement in seeking a ceasefire in Gaza. Deesis also highlights AstraZeneca's potential shift in its stock listing to the US, reflecting the UK’s waning global appeal. The conversation explores the banking sector's recent acquisitions and the market implications tied to these developments.
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Starmer's Welfare Reform U-Turn
- Keir Starmer's abandonment of welfare reforms leaves the UK government with a £5 billion budget gap.
- This reversal highlights vulnerability in his leadership and complicates fiscal planning.
UK Debt Levels Soften Rate Impact
- UK's low debt levels reduce the impact of high interest rates on inflation control.
- Bank of England takes cautious approach as policy is less restrictive historically.
Santander Expands UK Lender Status
- Santander’s £2.65 billion acquisition of TSB will make it the UK's third largest lender by current accounts.
- The combined bank will have 28 million customers and significant cost savings.