Bloomberg Daybreak: Europe Edition Trump 'Testing Markets' On Powell's Job , €2T EU Budget Rejected, Failing UK Water Industry
Jul 17, 2025
President Trump's remarks once again shake global markets, raising questions about the Federal Reserve's future. Germany's rejection of a €2 trillion EU budget proposal signals tough negotiations ahead. The UK's water industry faces dire challenges, with a newly proposed reform plan amid excessive debts. Meanwhile, JPMorgan Chase thrives, outpacing its competitors in market value, prompting optimism for a trading boom amidst the political landscape. The episode also hints at emerging trends in CEO sleep habits affecting productivity.
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Trump Tests Market With Fed Threat
- President Trump suggested firing Federal Reserve Chair Jerome Powell but denied immediate plans to do so.
- Market reactions showed volatility, implying Trump's testing of market tolerance for such a move.
Firing Fed Chair Risks Economy
- Bloomberg Economics modeled firing the Fed chair could reduce US GDP by 0.6 percentage points by mid-next year.
- Unemployment might rise near 5% and inflation around 3% under these scenarios.
Germany Rejects EU Budget Hike
- Germany rejected the European Commission's proposed €2 trillion EU budget increase.
- The budget faces tough negotiations amid pressures to repay Covid loans starting 2028.