Bloomberg Daybreak: Europe Edition

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.

Friedrich Merz, the newly elected Conservative opposition leader in Germany, discusses his plans for coalition formation following a pivotal election. He highlights the far-right Alternative for Germany's unexpected rise to second place, raising questions about Germany's political landscape. Merz also tackles the shifting fiscal policies expected after the election, hinting at increased spending. Additionally, insights are shared on the financial strains UK families face with private school fees amidst changing economic dynamics.

Jenny Marsh, a Team leader for Greater China EcoGov, shares her insights on the complex landscape of U.S.-China relations and the impact of U.S. tariffs on China's economy. They discuss the evolving dynamics in trade tensions, the optimism within China's tech sector, and the significance of the upcoming G20 summit. Jenny highlights how tariffs and trade policies shape international relations and consumer markets, emphasizing the pivotal role these elements play in global economic strategies.

In this discussion, guest Nick Leeson, the former rogue trader behind the Barings Bank collapse, shares his insights on current financial ethics and the increasing calls for deregulation. He reflects on the lessons from his past, emphasizing the importance of compliance and risk management today. Rosalind Matheson, Bloomberg’s EMEA News Director, analyzes the shifting dynamics of US-Russian relations amidst sanctions and the war in Ukraine, adding context to recent geopolitical tensions involving Israel and Hamas.

US President Trump hints at a possible trade deal with China, aiming to ease tensions. The EU is also considering cutting tariffs on imports to prevent a trade war with the US. In political news, UK leader Keir Starmer backs Zelenskiy amid rising global tensions, while South African President Ramaphosa calls for reform of global institutions skewed towards the West. Meanwhile, concern grows in the UK as households face economic uncertainty under a new Labour government, with rising costs affecting consumer confidence.

Bill Ferry, Bloomberg's senior editor, dives into the implications of President Trump's proposed 25% tariffs on various imports, potentially escalating the trade war. He discusses the future of US sanctions on Russia amid ongoing negotiations and the broader geopolitical landscape, particularly regarding Ukraine. HSBC's significant restructuring plans and $1.8 billion costs are also highlighted, reflecting changes in the banking sector. The conversation offers a compelling look at the intersection of economics and global politics.