Bloomberg Daybreak: Europe Edition

Tensions soar as China's diplomat slams Trump's tariff policies, accusing him of hypocrisy. The U.S. exempts Canadian and Mexican goods from hefty tariffs, but Wall Street is still reeling from sharp market swings. Hedge funds like Millennium Management struggle with poor returns amid this volatility. Meanwhile, the EU moves towards reforming fiscal rules to bolster defense spending, driven by security concerns. Central bankers prepare for tough decisions about interest rates that could further impact financial markets.

Your morning briefing, the business news you need in just 15 minutes. On today's podcast: (1) Japan’s government bond yields reached their highest levels in more than a decade and yields in Australia and New Zealand also surged as the rout in German bunds reverberated through global debt markets. (2) The European Central Bank is about to lower interest rates for the sixth time since June, though a volatile economic backdrop is sowing divisions over where to take borrowing costs from here. (3) President Emmanuel Macron said he’ll enter into talks on using France’s nuclear capabilities to defend European allies. (4) Financial markets are signaling that the risk of a recession is growing as tariff-related uncertainty and indicators of economic weakness spread fear across Wall Street.  (5) Bank of England Governor Andrew Bailey says US President Donald Trump’s tariff war poses a large risk to the world economy and will not fix the trade imbalances he hopes to address. (6) President Donald Trump is exempting automakers from newly imposed tariffs on Mexico and Canada for one month, the White House said Wednesday, as a temporary reprieve following pleas from industry leaders.See omnystudio.com/listener for privacy information.

President Trump addresses concerns about the US economy, hinting at tough times ahead. He defends his tariff policies and suggests possible relief for goods from Mexico and Canada. Meanwhile, Germany unveils plans for significant defense and infrastructure spending, shifting its fiscal strategy. Across the globe, China sets an ambitious 5% growth target for 2025, indicating potential stimulus measures as it navigates the ongoing trade war. Economic developments and political maneuverings intertwine in a dynamic landscape.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast:(1) President Donald Trump delivered on his threat to hit Canada and Mexico with sweeping import levies, imposing one of the largest increases in US tariffs since the 1930s in a dramatic escalation of a trade war that stands to upend ties with major economic partners.(2) China imposed tariffs as high as 15% on US goods and banned exports to some defense companies in retaliation for the Trump administration’s new levy, escalating a trade war between the world’s two largest economies.(3) President Donald Trump said the US would impose tariffs on “external” agricultural products starting on April 2, adding another layer of threats to impose trade barriers on imported goods.(4) Equities fluctuated as President Donald Trump’s tariffs on Canada, Mexico and China went into effect. Oil extended losses.(5) President Donald Trump ordered a pause to all military aid to Ukraine, turning up the heat on Volodymyr Zelenskiy days after an Oval Office blowup with the Ukrainian president left support from his country’s most important ally in doubt.See omnystudio.com/listener for privacy information.

European leaders rally for Ukraine's support while President Zelensky seeks a new dialogue with Trump. The looming tariffs on Canada, Mexico, and China could reshape economic ties and provoke inflation. As tensions rise, China's economic resilience faces a crucial test with potential fallout from U.S. decisions. Legal troubles for Jes Staley bring high-profile names into the spotlight. Finally, the Oscars shine a light on Zoe Saldaña's stellar performance, marking a memorable night for cinema lovers.

Mary Ross Gilbert, a Senior Equity Analyst at Bloomberg Intelligence, shares insights on Macy's and Gap's Q4 results, highlighting shifts in consumer spending and branding strategies. Swati Pandey, an Asia EcoGov reporter, discusses Australia's economic landscape, revealing the implications of the recent RBA rate cut amidst a resilient labor market. They also touch on the upcoming February jobs report and the ripple effects it could have on Federal Reserve policy, making for a captivating analysis on global economic trends.

Global stock markets are feeling the heat as President Trump’s new tariffs trigger a selloff, sparking fears of escalating trade tensions with China. UK Prime Minister Starmer makes strides in talks with Trump for a new trade deal, even as he faces challenges over Ukraine's security concerns. Meanwhile, the chocolate industry braces for turbulence due to rising cocoa prices, forcing chocolatiers to make tough choices. From geopolitics to sweet treats, today's briefing covers it all in a succinct morning recap.

Nvidia's latest earnings have investors feeling underwhelmed, as the chipmaker struggles to meet high expectations despite the AI boom. Trade tensions rise as President Trump’s tariff proposals on Canada, Mexico, and the EU create uncertainty. Meanwhile, UK PM Keir Starmer seeks to strengthen alliances and support Ukraine in talks with Trump. In a twist, central banks are turning to social media to better connect with Gen Z, aiming to build trust and improve communication about economic policies.

Ukraine and the US are joining forces to develop valuable mineral resources, a major step for both nations. President Trump is pushing for potential copper tariffs that could shake up global supply chains. Meanwhile, a controversial program offering residency for $5 million aims to attract wealthy investors. In the UK, troubling allegations of misconduct and a toxic culture at Foxtons are on the rise, sparking demands for accountability. The podcast dives into the overlaps of geopolitics, economics, and corporate responsibility.

Trump's recent shift in foreign policy raises eyebrows as he aligns more with Russia on the Ukraine conflict. Meanwhile, talks in Germany hint at a robust defense spending plan. In tech news, the U.S. tightens semiconductor controls, putting pressure on China. On a cultural note, musicians like Kate Bush release a silent album to protest AI copyright laws, igniting conversations about artist rights and the future of music. The global financial landscape also feels the tremors from these geopolitical tensions.