Bloomberg Daybreak: Europe Edition Fed’s Cook Vs Trump, Bond Surge Pressures France & UK, Data Crisis Deepens
Aug 27, 2025
Mary Nicola, Bloomberg's markets life strategist, dives into the tensions between Donald Trump and Federal Reserve Governor Lisa Cook as Trump seeks her ouster. She discusses the alarming surge in bond yields affecting France and the UK, amidst the risk of skyrocketing borrowing costs. Nicola highlights the tech triumph of SpaceX’s Starship rocket launch while linking it to broader economic trends. She also touches on the implications of a potential governance shake-up at the Bank of England, shedding light on how political and economic factors collide.
AI Snips
Chapters
Transcript
Episode notes
Fed Independence Under Political Strain
- Political pressure on the Fed threatens its institutional independence and could raise long-term borrowing costs.
- Markets may penalize the dollar and US assets if the White House succeeds in reshaping Fed policy.
US Tariffs Risk Straining India Ties
- The US imposed a 50% tariff on some Indian goods to punish purchases of Russian oil, risking diplomatic strain with New Delhi.
- India and Russia responded by pledging increased bilateral trade, limiting US leverage.
France Could Face Crisis-Level Bond Spreads
- A French government collapse could widen French-German yield spreads to crisis-era levels and increase borrowing costs.
- Political instability before the September confidence vote amplifies investor angst and pressure on French assets.