Bloomberg Daybreak: Europe Edition Merz Set To Take Power, BOE Mulls Tariff Cuts, Non-Dom Cost Warning
May 6, 2025
Roslyn Matheson, EMEA News Director, shares insights on Friedrich Merz's imminent chancellorship in Germany, highlighting his urgency to revive the economy and address migration concerns. The discussion also tackles troubling indicators for China's services sector amid rising U.S. tariffs, alongside Ford's financial outlook disrupted by global trade policies. Additionally, Matheson examines the UK’s potential tax policy changes for wealthy foreigners and their implications, stressing the risk of talent migration as government strategies shift.
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Merz's Leadership Ambitions
- Friedrich Merz aims to actively restore Germany's leadership role in Europe and push economic reforms swiftly.
- His predecessor Olaf Scholz was seen as passive in contrast, creating high expectations for Merz.
China's Services Slowdown
- China's service sector activity fell more than expected in April, showing signs of economic slowdown.
- Growth projections for Q2 now look weaker, pressured also by US tariffs.
BoE Expected Rate Cuts
- Economists largely expect the Bank of England to cut interest rates soon due to trade uncertainty and inflation pressures waning.
- If cuts come at successive meetings, it would be the first time since the 2008 financial crisis.