Bloomberg Daybreak: Europe Edition India & Pakistan Strikes, UK-US Trade Talks, Merz’s Chaotic First Day
May 7, 2025
Tensions escalate as India conducts targeted military strikes against Pakistan, leading to retaliatory responses. A significant trade deal between India and the UK is on the table, aimed at slashing tariffs on key goods. Meanwhile, US-UK negotiations are heating up to address tariff impacts amid shifting global trade dynamics. China's efforts to stimulate its economy are evident with policy rate reductions. In Germany, Friedrich Merz aims to revitalize the economy amid political chaos following his rise to power.
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India-Pakistan Military Escalation
- India conducted targeted military strikes against Pakistan, citing known terror camps as targets.
- Pakistan retaliated, claiming to have shot down five Indian jets, escalating tensions between the nuclear neighbors.
UK-India Trade Deal Milestone
- The UK and India concluded a landmark trade deal cutting tariffs on significant goods like cosmetics and vehicles.
- This deal is the UK's biggest since Brexit and India's most ambitious, expected to boost UK economy and jobs.
UK-US Trade Talk Developments
- UK and US officials are in intense talks aiming to reduce tariff impacts, focusing on steel, cars, and pharmaceuticals.
- Although optimistic, officials admit a final agreement is unlikely this week.