Bloomberg Daybreak: Europe Edition

James Walcock, Bloomberg's UK politics reporter, discusses Chancellor Rachel Reeves' controversial billion-pound spending cuts as she faces backlash from her party. Laura Noonan, Bloomberg's senior finance reporter, dives into the growing tension between UBS and Switzerland's financial regulator over stricter capital requirements post-Credit Suisse acquisition. The podcast also touches on the fragile ceasefire between Russia and Ukraine in the Black Sea, highlighting the complexities of global economic and political landscapes.

Derek Warbank, a senior editor at Bloomberg, sheds light on a major security breach in the Trump administration where sensitive military discussions were leaked via a group chat involving top officials. He dives into Trump's impending tariffs on automobile imports, teasing potential breaks for certain nations. The conversation also touches on the strain in U.S.-Russia relations concerning Ukraine, alongside the urgent need for technological advancements in the UK economy. A fascinating blend of political intrigue and economic insight awaits!

Emerging signs of a more measured approach to tariffs by Trump boosted US and European stock futures. The UK government is considering changes to its digital services tax amid trade concerns. In Turkey, the arrest of Erdogan's main rival is stirring up market instability. Mark Carney raises alarms about US intentions towards Canada. Meanwhile, US and Ukrainian officials are in discussions to halt Russia's invasion, with global markets watching cautiously.

Stuart Paul, a U.S. economist at Bloomberg Economics, shares insights on U.S. inflation and economic growth, focusing on the impact of tariffs on the housing market. Danny Lee, Bloomberg's Asia transport reporter, analyzes BYD's upcoming earnings, revealing projections of $100 billion in revenue and innovations in EV technology. Together, they discuss the delicate balance of economic policies in the U.S. and the implications of BYD's growth strategies amidst global markets.

Laura Alves, a Bloomberg reporter, dives into the urgent issue of a gunpowder shortage affecting Europe's defense capabilities. She discusses how this shortage complicates the continent's efforts to ramp up military support for Ukraine amid ongoing conflict. The conversation also touches on the chaotic impact of a fire at Heathrow Airport, disrupting travel plans for thousands. Alves highlights the challenges faced by munitions manufacturers and the larger implications for European security and supply chain resilience.

Your morning briefing, the business news you need in just 15 minutes. On today's podcast: (1) For weeks the US economic picture has been darkening. If Wednesday was an opportunity for Federal Reserve Chair Jerome Powell to raise the alarm, he took a hard pass. (2) President Donald Trump said the Federal Reserve should cut interest rates, splitting with the US central bank as officials weigh the economic cost of his tariff push.  (3) Research by Bloomberg Economics shows that China has roughly managed to maintain its share of global exports despite a big drop in its share of total US imports since Trump’s first term. Emerging markets are facing a so-called 'China shock', as cheap goods arrive in developing countries. (4) The Bank of England is likely to turn less dovish on Thursday as officials start to fret about the fallout from Donald Trump’s tariff wars and a renewed bout of domestic inflation. (5) Ukrainian President Volodymyr Zelenskiy agreed to a proposal for a mutual halt to strikes on energy assets as an initial step in President Donald Trump’s effort to end the war that began with Russia’s full-scale invasion three years ago.  (6) Major changes to UK inheritance tax by the Labour government means means wealthy Britons are embracing creative tactics to protect and pass on wealth, espcially businesses, farmland and pensions.See omnystudio.com/listener for privacy information.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast: (1) President Vladimir Putin refused to give Donald Trump the 30-day ceasefire in Ukraine he and his team had demanded on the path toward ending the three-year conflict. It was still good enough for the US president.(2) Morgan Stanley is planning to cut about 2,000 employees later this month in the first major workforce reduction under Chief Executive Officer Ted Pick.(3)  German lawmakers passed a landmark spending package, taking a major step toward unlocking hundreds of billions of euros in debt financing for defense and infrastructure and heralding the end of decades of budget austerity. (4) The Bank of Japan signaled growing unease over the potential impact on the global economy from escalating trade tensions, while keeping its key policy rate unchanged.(5) UK Prime Minister Keir Starmer’s move to cut disability benefits sets the scene for a showdown with the left of his governing Labour party as he seeks to prioritize fiscal prudence over social policy.(6) Two NASA astronauts stuck in orbit for nine months finally returned to Earth in a SpaceX craft, capping a saga that captured international attention and deepened America’s reliance on the Elon Musk-led company.(7) In France, rising taxes and political turmoil are having a chilling effect on the financial sector. Since last summer, international banks in Paris have quietly shelved expansion plans, after years of building its role as Europe's post-Brexit financial center.See omnystudio.com/listener for privacy information.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast: (1) Rachel Reeves has defended her fiscal rules and pledged to bring down government borrowing, as the UK Chancellor of the Exchequer faces dissent from Labour party colleagues opposed to cuts to welfare payments and government spending. (2) Israel launched a series of military strikes across Gaza, shattering a nearly two-month ceasefire, in response to Hamas's refusal to release hostages and rejection of proposals from the US and mediators. The escalation is the latest sign of renewed conflict in the Middle East. (3) President Donald Trump said the US and Russia are already talking about dividing “assets” as part of a push to end the fighting in Ukraine, the latest sign that he may be preparing to sacrifice Kyiv’s interests when he speaks with Vladimir Putin on Tuesday. (4) German lawmakers will vote on a bill today that would unlock hundreds of billions of euros in debt-financed defense and infrastructure spending and herald a pivot toward a substantially more expansive fiscal policy in Europe’s biggest economy. (5)  Two NASA astronauts stuck in orbit for nine months finally departed the International Space Station aboard a SpaceX capsule on Tuesday, kicking off their long-awaited voyage home. Butch Wilmore and Suni Williams, seated inside a Dragon capsule with two other crew members, undocked from the ISS at 1:05 a.m. New York time on Tuesday.  The capsule is expected to travel through space, plunge through the atmosphere and ultimately fall to Earth under parachutes before splashing down off the Florida coast around 6 p.m. New York time. See omnystudio.com/listener for privacy information.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast:(1) President Donald Trump said he’ll speak with Russian President Vladimir Putin on Tuesday, as the US continues to push for an end to fighting in Russia’s war in Ukraine.(2) Treasury Secretary Scott Bessent, a former hedge fund manager, said he’s not worried about the recent downturn that’s wiped trillions of dollars from the equities market as the US seeks to reshape its economic policies.(3) Consumption and industrial production in China grew faster to start the year, in an upswing that exceeded forecasts as Donald Trump’s tariffs threaten exporters in the world’s largest trading nation.(4) US President Donald Trump’s policies are causing more uncertainty for the economy than there was during Covid, European Central Bank Vice President Luis de Guindos told the Sunday Times.(5) The UK government will abolish more business regulators and scale back welfare spending to drive stagnant economic growth.See omnystudio.com/listener for privacy information.

Bloomberg Daybreak Weekend with Tom Busby takes a look at some of the stories we'll be tracking in the coming week. In the US – a preview of next week’s Fed decision and earnings from FedEx. In the UK – a preview of Morgan Stanley’s European Financials Conference. In Asia – a preview of Tencent earnings and the next BOJ decision.  See omnystudio.com/listener for privacy information.