Bloomberg Daybreak: Europe Edition

The Bank of England's growth forecast paints a bleak picture amid recession fears, yet officials push for a growth agenda. In a surprising twist, gold shipments from London to the U.S. are soaring due to premium prices. Donald Trump shares his tax priorities, signaling possible changes to private equity regulations. Meanwhile, Amazon faces potential capacity issues in its cloud division despite its massive investment plans. The podcast also tackles tensions between EU climate policies and the forestry industry's sustainable practices.

Key topics include Trump's upcoming plan for Ukraine, which is expected to be unveiled at the Munich Security Conference. A controversial suggestion about Gaza has drawn mixed reactions. On the corporate front, Google has decided to abandon its formal diversity goals, reflecting broader trends in Silicon Valley. Additionally, the Bank of England is predicted to cut interest rates, grappling with rising inflation and growth concerns. The geopolitical landscape continues to shift, influencing both economic strategies and tech industry practices.

Donald Trump's bold proposal to transform Gaza into a 'Riviera' raises eyebrows and sparks global reactions, especially from Saudi Arabia. Meanwhile, China adopts a more cautious trade strategy amid ongoing tensions, reflecting its slowing domestic economy. The diamond market faces challenges as De Beers confronts falling prices and shifting consumer preferences favoring lab-grown options. Additionally, Sweden grapples with a tragic mass shooting, posing questions about safety and security amidst an unsettling geopolitical climate.

Lizzie Burden, Bloomberg UK correspondent, shares insights from Brussels on Keir Starmer's diplomatic balancing act post-Brexit. She discusses China's swift retaliation to US tariffs and the implications for global trade. The conversation highlights Starmer's attempts to maintain strong ties with both the US and EU while managing intricate trade relationships. Furthermore, they explore the temporary delay of tariffs between the US, Canada, and Mexico and the pressure it places on Starmer to navigate defense spending amidst international expectations.

Kriti Gupta, a Bloomberg TV anchor, shares her insights on the economic ripples of Trump’s tariffs on Canada, Mexico, and China. She highlights the anticipated price hikes for everyday goods like fruits and cars, and discusses responses from world leaders, including a cautious China. The conversation delves into the U.S.-EU trade tensions and the potential impacts on European economies. Gupta emphasizes how these actions could reshape the trade landscape amid fears of a looming trade war.

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: We look ahead to the January Jobs report and preview some big tech earnings we're watching In the UK: We look ahead to the BOE rate decision  In Asia: We detail the future of China's DeepSeek AI  See omnystudio.com/listener for privacy information.

In this discussion with Derek Wallbank, Bloomberg's senior editor for U.S. economics and government, listeners gain insights into President Trump's plans for 25% tariffs on imports from Canada and Mexico, which have already rattled foreign exchange markets. They delve into the serious implications of these tariffs on trade and immigration while examining the tragic plane crash in Washington, D.C. Additionally, Wallbank highlights a concerning study revealing that women have significantly less trust in the Bank of England compared to men amidst rising cost-of-living pressures.

A devastating midair collision involving an American Airlines regional jet and a military helicopter raises questions about airspace safety. Federal Reserve Chair Jerome Powell underscores a cautious approach to interest rates. Meanwhile, Tesla announces exciting plans for robotaxi operations, hinting at substantial upcoming growth. In the tech arena, scrutiny intensifies as Meta invests heavily in AI, while Microsoft struggles to meet the surging demand for its cloud services amid infrastructure challenges.

Join Lizzie Burden, Bloomberg's UK correspondent, as she reveals Rachel Reeves' ambitious plans to stimulate the UK economy through infrastructure projects. Meanwhile, Mark Gurman, the chief technology correspondent, discusses the secret collaboration between Apple, SpaceX, and T-Mobile to integrate Starlink support in smartphones. Delve into Microsoft's investigation into data security linked to AI, and uncover how the tech sector navigates these turbulent waters while pushing for innovation.

In this discussion, Mary Nicola, a strategist at Bloomberg Markets Live, analyzes the impact of DeepSeek, a Chinese AI startup releasing a groundbreaking open-source model. She highlights how this innovation challenges major players like Nvidia, leading to significant market sell-offs. The conversation also touches on President Trump's bold tariff proposals and their potential effects on US trade. Additionally, Nicola discusses the UK's plans to utilize pension fund surpluses to stimulate economic growth, reflecting evolving market dynamics.