April 8, 2025 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) China pledged to retaliate against Donald Trump’s latest tariff threat and stepped up efforts to support the market, raising the risk of a prolonged trade war between the world’s two largest economies.
(2) Japan looks set to get priority in US tariff talks, moving to the front of a long line of countries seeking to roll back President Donald Trump’s so-called reciprocal duties, which are scheduled to kick in on Wednesday.
(3) President Donald Trump threatened to slap China with an additional 50% import tax, while Washington and Wall Street remained engulfed in confusion about how to gain exceptions from his sweeping global tariffs.
(4) At just after 10 a.m., shouting erupted on the Siebert trading floor in downtown Manhattan. Mark Malek, the firm’s chief investment officer, rushed out of his office to hear his head trader screaming that President Donald Trump was weighing suspending the across-the-board tariff roll-out that had been sinking stock markets for days.
(5) Billionaire Ken Griffin said President Donald Trump’s latest tariffs amount to a hefty tax on families and are a “huge policy mistake” by the administration.
(6) European Union trade ministers closed ranks and signaled readiness to deploy a full spectrum of countermeasures including potential taxes on digital companies in response to US President Donald Trump’s sweeping tariffs.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg Daybreak europ podcast, available every morning
on Apple, Spotify or wherever you listen. It's Tuesday, the
eighth of April in London. I'm Stephen Carroll coming up today.
China vows to fight to the end as Trump threatens
even more trade tariffs. The US President's clashing comments keep
investors on edge after a historic stock market sell off,
(00:32):
and Ken Griffin calls Trump's latest levies a huge mistake
as Apple customers in the US dashed to buy iPhones
ahead of tomorrow's fifty four percent levees on Chinese imports.
Let's start with a roundup of our top stories. Beijing
has vowed to fight to the end after Donald Trump
threatened to slap an additional fifty percent tariff on Chinese
(00:54):
goods unless it withdraws its retaliation against his earlier levies.
Here's what the US President told reporters yesterday.
Speaker 3 (01:01):
As you know, against my statement, they put a thirty
four percent tariff on above what their ridiculous tariffs were already.
And I said, if that tariff isn't removed by tomorrow
or twelve o'clock we're putting a fifty percent teriff on
above the tariffs that we put on.
Speaker 2 (01:20):
Responding to Trump, the Chinese Commerce Ministry said the US
threat to further escalate the trade war is a mistake
on top of a mistake, as analysts worn, there's now
a risk of the world's two largest economies decoupling. Chetan
Aya is Morgan Stanley's chief Asia economist, with.
Speaker 4 (01:36):
The uncertainty causes a global trade slowdown, and so it's
not about China's exports to the US, but if China
were to be able to export to other countries by
increasing market share and selling them new products and into
these new geographies, it's possible when those economies are also
doing well. But in an environment where there's going to
be a global slowdown, their goods demand in other economies
(02:00):
will also be suffering. So China is definitely going to
have more pain to take this cycle.
Speaker 2 (02:06):
Chetenaya's warning comes as China's central bank eased its tight
grip on the yuan, weakening the currency's daily reference right
past the keenly watched seven to twenty per dollar level.
The growing tensions between China and the US come as
it shares in Asia rebounded following historic losses on Monday.
Trump's push for sweeping tariffs wiped has wiped ten trillion
(02:28):
dollars off global equities in less than a week. However,
the US president's decision to assign two members of his
cabinet to bilateral trade talks with Japan has given market
some confidence that levies could be rolled back. Bloomberg Intelligence's
chief equity strategist, Gina Martin Adams says, it's hard to
be sure that things have bottomed out.
Speaker 5 (02:46):
I would say that it's the vigorous that not only
we see tensions retchetting up with China, but also tensions
between the US and the rest of the world continuing
to wretch at higher Clearly, we're already seeing downward directionality
in terms of estimate visions reflecting the tariffs. Over the
course of just the last several weeks, analyst expectations for
first half earnings in the twenty twenty five year have
(03:09):
dropped from double digits to single digits. So we're already
starting to see downward momentum emerge for earnings. But I
do fear that it's just the beginning.
Speaker 2 (03:17):
Gina Mark Nodams. There is the nick A and topics
at Stock indexes in Tokyo rose by more than five percent,
with futures pointing higher in Europe and in the United States.
In a litany of comments about his planned duties on
worldwide trading partners, President Trump said he's not looking to
pause tariffs, while adding that some deals could be made. Yet,
(03:37):
the President offered little clarity about what he's seeking from
trading partners in exchange for lowering levy rates, or whether
he's willing to offer relief at all.
Speaker 3 (03:47):
There can be permanent derepts, and there can also be negotiations,
because there are things that we need beyond tariff.
Speaker 2 (03:53):
Trump's seeming vagueness on negotiations came as Treasury secretaries got
bess and said that he hopes tariff rates will come
down as talks get going with US trading partners.
Speaker 6 (04:03):
For countries that don't retaliate. We are at a maximum
tariff level, and it is my hope that through good negotiations,
all we will do is see levels come down, but
that's going to depend on the other countries.
Speaker 2 (04:20):
US Strategy Secretary Scott bess than speaking on Fox Business,
He went on to say that almost seventy countries have
reached out to the US to negotiate a trade deal.
It made the massive market moves. Traders are jumping on
any hint of relief from the tariffs. One social media
post about a potential pause in the levees sparked a
two point five trillion dollar rally on the SMP five hundred,
(04:43):
only for it to reverse within fifteen minutes when it
turned out not to be true. Bloomberg Exchange Wilcock has more.
It all started with this interview, will you.
Speaker 3 (04:52):
Do a ninety day pause in which you consider that?
Speaker 7 (04:54):
Or bill?
Speaker 8 (04:54):
Yet?
Speaker 6 (04:55):
You know, I think that the President is going to
decide what the President is going to decide.
Speaker 7 (04:59):
That line from the White House Economic Council Director Kevin
Hassett sparked speculation on social media that a tariff pause
was being considered. One post was picked up by CNBC
and routers, sparking a rally on the S and P
five hundred that added trillions of dollars to stocks within minutes.
That was until the White House shut down, the rumors
and the gains were wiped out. It's a coutiary tale
(05:21):
showing how volatile markets are right now, but also how
desperate some traders are for good news in London. James
Wilcock Bloomberg Radio, but you are.
Speaker 2 (05:30):
Ken Griffin has called the president's latest tariff's a huge
policy mistake, citing increased costs for the middle class. Speaking
at the University of Miami yesterday, the Citadel founder added
his voice to the growing roster of prominent finance executives
criticizing the levies. His criticism came as Federal Reserve Bank
of Chicago President Austin Goolsby discussed concerns amongst business leaders
(05:52):
facing supply disruption and inflationary pressure during an interview at CNN.
Speaker 9 (05:57):
The anxiety is if the lease tariffs are as big
as what are threatened on the US side, and if
there's massive retaliation, and then if there's counter retaliation again,
it might send us back to the kind of conditions
that we saw in twenty one and twenty two when
inflation's raging out of control, and it could send us
(06:19):
back to the supply disruptions of the format we saw
in twenty twenty beginning of covid.
Speaker 2 (06:24):
Faed's Austin Gilsby speaking there after, FED chair Jerome Power
last week signals that he and his colleagues wouldn't rush
to react to the tariff news. Inflation sort to a
four decade high in twenty twenty two, and the FED
raised borrowing costs sharply to combat the price pressures. Your opinion.
In trade ministers are ready to deploy countermeasures against US
(06:45):
tariffs if needed. Speaking after discussions between member states in
Luxembourg yesterday, EU Trade Commissioner Marraschefchevich says other means of
resolution would be pursued first well. The EU remains open
to and strongly prefers negotiations who will not weigh end
endlessly you, Trade Commissioner Marscheftovich, adding that so far efforts
(07:06):
to engage with Washington have not yielded a mutually acceptable solution. Meanwhile,
the EU has dropped a planned fifty percent retaliatory tariff
on American whiskey, instead proposing twenty five percent levees on
a selection of US goods. The move is in retaliation
for President Trump's levees on steel and aluminium imports, which
came into force last month. The Trump administration's threat of
(07:28):
new tariffs has caused a surge in Apple store customers,
who are panic buying iPhones due to concerns about price increases.
Apple's US retail stores saw higher sales over the past
weekend than in Apple's US retail stores saw higher sales
over the past weekend than in prior years in some
major markets, with employees describing the atmosphere as similar to
(07:50):
the busy holiday season. The rush is expected to continue
over the next few days, which could help to bolster
Apple's third quarter results, although the impact of tariff's won't
likely be felt until the following quarter. Those are your
top stories on the markets. We are seeing a rebound
in eight in equities today, the Nickey up five point
two percent, the Topics five point five percent higher, the
(08:10):
MSCI China Index up by one point seven percent. We
did see the equity route turn into a bond rout yesterday,
though treasuries fell, the yield on the tenure rising around
twenty basis points. Today it's slightly below that level, down
four basis points at four point one four percent. As well,
investors liquidating their profitable trades to cover equity losses. Tim
applying to gold by the way, which fell by two
(08:31):
percent yesterday. Today it's up slightly on the day just
brushing three thousand dollars a troy ounce as well. Looking
ahead to the European session, Eurostox fifty features one point
nine percent higher on Wall Street SMP Mini's just up
over one percent. Well, in a moment, we'll bring you
more on the change in direction in markets. Plus is
the room for countries to negotiate with Donald Trump. But
(08:53):
what we're trying to make sense of all the headlines
on the market reaction to the tarerff story. It might
confort you know that some people are having fun with
all of this. Jessica Carl, who writes Bloomberg Opinion's daily newsletter,
nails it again in her latest noting the rise of
tarift as gen z or gen zed slang apparently needs
her response to when someone makes a sarcastic or cutting
remark to say, I'm tariffing you, Jessica writes, this feels
(09:14):
like a return to previous trends, like calling anything a
recession indicator, and kind of makes me nostalgic for some
of the sort of jokes of great value in a
recession that we used to hear in Ireland at the
time of the Eurozone crisis as well, perhaps as a
chart of recession related slang we could be looking for
as well. Donald Trump appears to be trying to get
in on the change in lexicons used of Pannikin in
a recent social media post, which he says is a
(09:37):
new party based on weak and stupid people. But is
it a combination of panic and Republican? Is it Panglin
and Pelican? Is it the new koffee Penny? More to
read from Jessica carl in the Bloomberg Opinion newsletter, which
you can sign up for from Bloomberg dot com as well.
She suggests that perhaps we should leave the new terms
to gen Z rather than trying to come up with
our own. Let's go to the markets now, Asian Equity's
(09:58):
rebounding from yesterday's sell off, even as China has vowed
to fight to the end in response to Donald Trump's
late as tariff threats our market's life. Strategistic Mary Nicola
is with us for more. Mary, good morning. Let's talk
about what we're seeing today, then, the turnaround and sentiment.
Where is it coming from, particularly when we think about
Japanese markets.
Speaker 1 (10:15):
Yeah, I think for Japan specifically, it's more about Japan
seemingly getting a priority in trade negotiations, which we heard
from US Treasury Sectory Scott descent, which has given the
markets a substantial boost. But I would caution in terms
of it's too early to say that the tide has
really shifted in sentiment, because it does remain fragile without
(10:39):
terror relief. We saw how markets whip sawed in the
New York time zone on headlines that there may be
a delay in the tariffs. So I think for now,
this this bounce might be just a little bit more
of a reprieve than anything else.
Speaker 2 (10:52):
Okay, well, how seriously then our investors taking this threat
of escalation from China.
Speaker 1 (10:57):
I think pretty seriously. I think we've seen a bounce
in China and Chinese equities and Chinese equities, though that
balance remains a bit fragile, and it might be actually
provide a selling opportunity, especially as tensions escalate. We've heard
really strong words from both sides over the last twenty
four hours, and Beijing has signaled its willingness to fight,
(11:18):
and so it doesn't look like it's going to back down.
That just signals a potentially prolonged trade war, which obviously
raises the risks on global growth.
Speaker 2 (11:28):
So should we then be braced for more volatility. You
mentioned that story yesterday that circulated around potential polls and towers,
which turned out not to be true, but giving us
an example of how jittery things are on markets.
Speaker 1 (11:41):
Yeah, I think essentially the one thing that is almost
guaranteed in this market is volatility. We've seen a massive
whip saws over the last few over the last week,
and I think that's likely to continue because we don't
have anything resolute in terms of what we're getting on
terror relief, and that's going to continue to weigh on markets,
(12:04):
especially when we're getting more convincing evidence or concern that
there could be and rising concerns about a global recession.
So in addition to that is that we're not seeing
any fiscal or monetary policy come to the rescue, which
also aggravates and exacerbates the selloff. So that means the
(12:25):
risk the risks are rising, and essentially we're going to
see much much more volatility in the coming weeks.
Speaker 2 (12:32):
Okay, we are warned, Mary, Thank you very much for
joining us, Mary Nicola, our Markets Live strategist. Well, the
next phase of Donald Trump's tariffs come into force tomorrow
higher rates applied to countries, including members of the EU.
Speaking on Monday, the US President did not offer much
clarity about what he wants from trading partners and any negotiations.
Our EMEA news director Rosalind Matheson is with us Now
(12:52):
for more ross. What did we learn from Donald Trump
on Monday?
Speaker 10 (12:58):
Well, as you say, after a pretty well day on markets,
we didn't get a lot of clarity either from the
US President about what he's intending here, although there were
two things he did seem to make clear. He doesn't
want to put a blanket pause on the higher tariffs
that are set to take effect on Wednesday. He also
wouldn't be drawn on whether he would agree to lower
(13:18):
any tariffs below his baseline rate, which is ten percent,
But he did say he's willing to talk to people.
It's just unclear exactly what he wants in any of
those conversations, because not only is he talking about pure
what he calls pure tariff barriers, but he also talks
about non tariff barriers, and in the world of Donald Trump,
(13:39):
that can mean a lot of different things. And so
for countries to work out what is it that they
need to do here to perhaps, you know, encourage a
lower tariff rate. In the suite of options for them,
it's very unclear what they need to do, like what
exactly does he want them to give him in return,
and so they're kind of floundering around a little bit.
Speaker 6 (14:00):
We know.
Speaker 10 (14:01):
Also, I mean, given this is so many leaders and
officials and companies and lobby groups trying to get the
attention of the Trump administration, either Donald Trump himself or
those in his inner circle, those they see as decision makers,
that it's very hard to reach anybody. We know from
our own reporting they're getting inundated with that. And so
(14:23):
you know, not only we're not getting public clarity from
Donald Trump and his administration, but behind the scenes, it
seems that, you know, companies and countries alike are struggling
to work it out.
Speaker 5 (14:33):
Yeah.
Speaker 2 (14:33):
Indeed, we're seeing different approaches being taken by countries in
different parts of the world. We did have any meeting
yesterday of trade ministers in Luxembourg. They said they're ready
to deploy countermeasures, including the potential for digital taxes, in
response to blanket tariffs, but they too are still leaving
room open for talks. Well, that's right.
Speaker 10 (14:54):
It seems everybody, perhaps aside from China, is leaving room
open for talks. As you say, the EU is proposing
twenty five percent tariffs on an array of US goods
that seem to emit American whiskey or bourbon, which is
actually a targeted move because bourbon's a key thing for
(15:14):
a number of US states where there are quite senior
Republican senators, and so they've dropped the plan to put
a fifty percent retaliatory tariff on that, But they do
have a list of other items including motorcycles, boats, I mean,
a lot of stuff is what has already been in
the crosshairs before, but also tobacco, poultry, even playing cards.
(15:36):
Most of them would get a twenty five percent tariff
under this someone get ten percent. But it seems to
be a bit of a calibrated response from the EU,
as you say, to allow roomfall negotiation and no official
talk at now the EU level. It seems about the
possibility of doing things like putting in an EU wide
digital tax on US big tech.
Speaker 2 (15:58):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 8 (16:04):
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and anywhere else you get your podcasts.
Speaker 2 (16:10):
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Speaker 8 (16:16):
Our flagship New York station, is also available on your
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Speaker 2 (16:24):
I'm Caroline Hepka and I'm Stephen Carroll. Join us again
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your day right here on Bloomberg Daybreak Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg Daybreak europ podcast, available every morning
on Apple, Spotify or wherever you listen. It's Tuesday, the
eighth of April in London. I'm Stephen Carroll coming up today.
China vows to fight to the end as Trump threatens
even more trade tariffs. The US President's clashing comments keep
investors on edge after a historic stock market sell off,
(00:32):
and Ken Griffin calls Trump's latest levies a huge mistake
as Apple customers in the US dashed to buy iPhones
ahead of tomorrow's fifty four percent levees on Chinese imports.
Let's start with a roundup of our top stories. Beijing
has vowed to fight to the end after Donald Trump
threatened to slap an additional fifty percent tariff on Chinese
(00:54):
goods unless it withdraws its retaliation against his earlier levies.
Here's what the US President told reporters yesterday.
Speaker 3 (01:01):
As you know, against my statement, they put a thirty
four percent tariff on above what their ridiculous tariffs were already.
And I said, if that tariff isn't removed by tomorrow
or twelve o'clock we're putting a fifty percent teriff on
above the tariffs that we put on.
Speaker 2 (01:20):
Responding to Trump, the Chinese Commerce Ministry said the US
threat to further escalate the trade war is a mistake
on top of a mistake, as analysts worn, there's now
a risk of the world's two largest economies decoupling. Chetan
Aya is Morgan Stanley's chief Asia economist, with.
Speaker 4 (01:36):
The uncertainty causes a global trade slowdown, and so it's
not about China's exports to the US, but if China
were to be able to export to other countries by
increasing market share and selling them new products and into
these new geographies, it's possible when those economies are also
doing well. But in an environment where there's going to
be a global slowdown, their goods demand in other economies
(02:00):
will also be suffering. So China is definitely going to
have more pain to take this cycle.
Speaker 2 (02:06):
Chetenaya's warning comes as China's central bank eased its tight
grip on the yuan, weakening the currency's daily reference right
past the keenly watched seven to twenty per dollar level.
The growing tensions between China and the US come as
it shares in Asia rebounded following historic losses on Monday.
Trump's push for sweeping tariffs wiped has wiped ten trillion
(02:28):
dollars off global equities in less than a week. However,
the US president's decision to assign two members of his
cabinet to bilateral trade talks with Japan has given market
some confidence that levies could be rolled back. Bloomberg Intelligence's
chief equity strategist, Gina Martin Adams says, it's hard to
be sure that things have bottomed out.
Speaker 5 (02:46):
I would say that it's the vigorous that not only
we see tensions retchetting up with China, but also tensions
between the US and the rest of the world continuing
to wretch at higher Clearly, we're already seeing downward directionality
in terms of estimate visions reflecting the tariffs. Over the
course of just the last several weeks, analyst expectations for
first half earnings in the twenty twenty five year have
(03:09):
dropped from double digits to single digits. So we're already
starting to see downward momentum emerge for earnings. But I
do fear that it's just the beginning.
Speaker 2 (03:17):
Gina Mark Nodams. There is the nick A and topics
at Stock indexes in Tokyo rose by more than five percent,
with futures pointing higher in Europe and in the United States.
In a litany of comments about his planned duties on
worldwide trading partners, President Trump said he's not looking to
pause tariffs, while adding that some deals could be made. Yet,
(03:37):
the President offered little clarity about what he's seeking from
trading partners in exchange for lowering levy rates, or whether
he's willing to offer relief at all.
Speaker 3 (03:47):
There can be permanent derepts, and there can also be negotiations,
because there are things that we need beyond tariff.
Speaker 2 (03:53):
Trump's seeming vagueness on negotiations came as Treasury secretaries got
bess and said that he hopes tariff rates will come
down as talks get going with US trading partners.
Speaker 6 (04:03):
For countries that don't retaliate. We are at a maximum
tariff level, and it is my hope that through good negotiations,
all we will do is see levels come down, but
that's going to depend on the other countries.
Speaker 2 (04:20):
US Strategy Secretary Scott bess than speaking on Fox Business,
He went on to say that almost seventy countries have
reached out to the US to negotiate a trade deal.
It made the massive market moves. Traders are jumping on
any hint of relief from the tariffs. One social media
post about a potential pause in the levees sparked a
two point five trillion dollar rally on the SMP five hundred,
(04:43):
only for it to reverse within fifteen minutes when it
turned out not to be true. Bloomberg Exchange Wilcock has more.
It all started with this interview, will you.
Speaker 3 (04:52):
Do a ninety day pause in which you consider that?
Speaker 7 (04:54):
Or bill?
Speaker 8 (04:54):
Yet?
Speaker 6 (04:55):
You know, I think that the President is going to
decide what the President is going to decide.
Speaker 7 (04:59):
That line from the White House Economic Council Director Kevin
Hassett sparked speculation on social media that a tariff pause
was being considered. One post was picked up by CNBC
and routers, sparking a rally on the S and P
five hundred that added trillions of dollars to stocks within minutes.
That was until the White House shut down, the rumors
and the gains were wiped out. It's a coutiary tale
(05:21):
showing how volatile markets are right now, but also how
desperate some traders are for good news in London. James
Wilcock Bloomberg Radio, but you are.
Speaker 2 (05:30):
Ken Griffin has called the president's latest tariff's a huge
policy mistake, citing increased costs for the middle class. Speaking
at the University of Miami yesterday, the Citadel founder added
his voice to the growing roster of prominent finance executives
criticizing the levies. His criticism came as Federal Reserve Bank
of Chicago President Austin Goolsby discussed concerns amongst business leaders
(05:52):
facing supply disruption and inflationary pressure during an interview at CNN.
Speaker 9 (05:57):
The anxiety is if the lease tariffs are as big
as what are threatened on the US side, and if
there's massive retaliation, and then if there's counter retaliation again,
it might send us back to the kind of conditions
that we saw in twenty one and twenty two when
inflation's raging out of control, and it could send us
(06:19):
back to the supply disruptions of the format we saw
in twenty twenty beginning of covid.
Speaker 2 (06:24):
Faed's Austin Gilsby speaking there after, FED chair Jerome Power
last week signals that he and his colleagues wouldn't rush
to react to the tariff news. Inflation sort to a
four decade high in twenty twenty two, and the FED
raised borrowing costs sharply to combat the price pressures. Your opinion.
In trade ministers are ready to deploy countermeasures against US
(06:45):
tariffs if needed. Speaking after discussions between member states in
Luxembourg yesterday, EU Trade Commissioner Marraschefchevich says other means of
resolution would be pursued first well. The EU remains open
to and strongly prefers negotiations who will not weigh end
endlessly you, Trade Commissioner Marscheftovich, adding that so far efforts
(07:06):
to engage with Washington have not yielded a mutually acceptable solution. Meanwhile,
the EU has dropped a planned fifty percent retaliatory tariff
on American whiskey, instead proposing twenty five percent levees on
a selection of US goods. The move is in retaliation
for President Trump's levees on steel and aluminium imports, which
came into force last month. The Trump administration's threat of
(07:28):
new tariffs has caused a surge in Apple store customers,
who are panic buying iPhones due to concerns about price increases.
Apple's US retail stores saw higher sales over the past
weekend than in Apple's US retail stores saw higher sales
over the past weekend than in prior years in some
major markets, with employees describing the atmosphere as similar to
(07:50):
the busy holiday season. The rush is expected to continue
over the next few days, which could help to bolster
Apple's third quarter results, although the impact of tariff's won't
likely be felt until the following quarter. Those are your
top stories on the markets. We are seeing a rebound
in eight in equities today, the Nickey up five point
two percent, the Topics five point five percent higher, the
(08:10):
MSCI China Index up by one point seven percent. We
did see the equity route turn into a bond rout yesterday,
though treasuries fell, the yield on the tenure rising around
twenty basis points. Today it's slightly below that level, down
four basis points at four point one four percent. As well,
investors liquidating their profitable trades to cover equity losses. Tim
applying to gold by the way, which fell by two
(08:31):
percent yesterday. Today it's up slightly on the day just
brushing three thousand dollars a troy ounce as well. Looking
ahead to the European session, Eurostox fifty features one point
nine percent higher on Wall Street SMP Mini's just up
over one percent. Well, in a moment, we'll bring you
more on the change in direction in markets. Plus is
the room for countries to negotiate with Donald Trump. But
(08:53):
what we're trying to make sense of all the headlines
on the market reaction to the tarerff story. It might
confort you know that some people are having fun with
all of this. Jessica Carl, who writes Bloomberg Opinion's daily newsletter,
nails it again in her latest noting the rise of
tarift as gen z or gen zed slang apparently needs
her response to when someone makes a sarcastic or cutting
remark to say, I'm tariffing you, Jessica writes, this feels
(09:14):
like a return to previous trends, like calling anything a
recession indicator, and kind of makes me nostalgic for some
of the sort of jokes of great value in a
recession that we used to hear in Ireland at the
time of the Eurozone crisis as well, perhaps as a
chart of recession related slang we could be looking for
as well. Donald Trump appears to be trying to get
in on the change in lexicons used of Pannikin in
a recent social media post, which he says is a
(09:37):
new party based on weak and stupid people. But is
it a combination of panic and Republican? Is it Panglin
and Pelican? Is it the new koffee Penny? More to
read from Jessica carl in the Bloomberg Opinion newsletter, which
you can sign up for from Bloomberg dot com as well.
She suggests that perhaps we should leave the new terms
to gen Z rather than trying to come up with
our own. Let's go to the markets now, Asian Equity's
(09:58):
rebounding from yesterday's sell off, even as China has vowed
to fight to the end in response to Donald Trump's
late as tariff threats our market's life. Strategistic Mary Nicola
is with us for more. Mary, good morning. Let's talk
about what we're seeing today, then, the turnaround and sentiment.
Where is it coming from, particularly when we think about
Japanese markets.
Speaker 1 (10:15):
Yeah, I think for Japan specifically, it's more about Japan
seemingly getting a priority in trade negotiations, which we heard
from US Treasury Sectory Scott descent, which has given the
markets a substantial boost. But I would caution in terms
of it's too early to say that the tide has
really shifted in sentiment, because it does remain fragile without
(10:39):
terror relief. We saw how markets whip sawed in the
New York time zone on headlines that there may be
a delay in the tariffs. So I think for now,
this this bounce might be just a little bit more
of a reprieve than anything else.
Speaker 2 (10:52):
Okay, well, how seriously then our investors taking this threat
of escalation from China.
Speaker 1 (10:57):
I think pretty seriously. I think we've seen a bounce
in China and Chinese equities and Chinese equities, though that
balance remains a bit fragile, and it might be actually
provide a selling opportunity, especially as tensions escalate. We've heard
really strong words from both sides over the last twenty
four hours, and Beijing has signaled its willingness to fight,
(11:18):
and so it doesn't look like it's going to back down.
That just signals a potentially prolonged trade war, which obviously
raises the risks on global growth.
Speaker 2 (11:28):
So should we then be braced for more volatility. You
mentioned that story yesterday that circulated around potential polls and towers,
which turned out not to be true, but giving us
an example of how jittery things are on markets.
Speaker 1 (11:41):
Yeah, I think essentially the one thing that is almost
guaranteed in this market is volatility. We've seen a massive
whip saws over the last few over the last week,
and I think that's likely to continue because we don't
have anything resolute in terms of what we're getting on
terror relief, and that's going to continue to weigh on markets,
(12:04):
especially when we're getting more convincing evidence or concern that
there could be and rising concerns about a global recession.
So in addition to that is that we're not seeing
any fiscal or monetary policy come to the rescue, which
also aggravates and exacerbates the selloff. So that means the
(12:25):
risk the risks are rising, and essentially we're going to
see much much more volatility in the coming weeks.
Speaker 2 (12:32):
Okay, we are warned, Mary, Thank you very much for
joining us, Mary Nicola, our Markets Live strategist. Well, the
next phase of Donald Trump's tariffs come into force tomorrow
higher rates applied to countries, including members of the EU.
Speaking on Monday, the US President did not offer much
clarity about what he wants from trading partners and any negotiations.
Our EMEA news director Rosalind Matheson is with us Now
(12:52):
for more ross. What did we learn from Donald Trump
on Monday?
Speaker 10 (12:58):
Well, as you say, after a pretty well day on markets,
we didn't get a lot of clarity either from the
US President about what he's intending here, although there were
two things he did seem to make clear. He doesn't
want to put a blanket pause on the higher tariffs
that are set to take effect on Wednesday. He also
wouldn't be drawn on whether he would agree to lower
(13:18):
any tariffs below his baseline rate, which is ten percent,
But he did say he's willing to talk to people.
It's just unclear exactly what he wants in any of
those conversations, because not only is he talking about pure
what he calls pure tariff barriers, but he also talks
about non tariff barriers, and in the world of Donald Trump,
(13:39):
that can mean a lot of different things. And so
for countries to work out what is it that they
need to do here to perhaps, you know, encourage a
lower tariff rate. In the suite of options for them,
it's very unclear what they need to do, like what
exactly does he want them to give him in return,
and so they're kind of floundering around a little bit.
Speaker 6 (14:00):
We know.
Speaker 10 (14:01):
Also, I mean, given this is so many leaders and
officials and companies and lobby groups trying to get the
attention of the Trump administration, either Donald Trump himself or
those in his inner circle, those they see as decision makers,
that it's very hard to reach anybody. We know from
our own reporting they're getting inundated with that. And so
(14:23):
you know, not only we're not getting public clarity from
Donald Trump and his administration, but behind the scenes, it
seems that, you know, companies and countries alike are struggling
to work it out.
Speaker 5 (14:33):
Yeah.
Speaker 2 (14:33):
Indeed, we're seeing different approaches being taken by countries in
different parts of the world. We did have any meeting
yesterday of trade ministers in Luxembourg. They said they're ready
to deploy countermeasures, including the potential for digital taxes, in
response to blanket tariffs, but they too are still leaving
room open for talks. Well, that's right.
Speaker 10 (14:54):
It seems everybody, perhaps aside from China, is leaving room
open for talks. As you say, the EU is proposing
twenty five percent tariffs on an array of US goods
that seem to emit American whiskey or bourbon, which is
actually a targeted move because bourbon's a key thing for
(15:14):
a number of US states where there are quite senior
Republican senators, and so they've dropped the plan to put
a fifty percent retaliatory tariff on that, But they do
have a list of other items including motorcycles, boats, I mean,
a lot of stuff is what has already been in
the crosshairs before, but also tobacco, poultry, even playing cards.
(15:36):
Most of them would get a twenty five percent tariff
under this someone get ten percent. But it seems to
be a bit of a calibrated response from the EU,
as you say, to allow roomfall negotiation and no official
talk at now the EU level. It seems about the
possibility of doing things like putting in an EU wide
digital tax on US big tech.
Speaker 2 (15:58):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 8 (16:04):
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and anywhere else you get your podcasts.
Speaker 2 (16:10):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 8 (16:16):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
Speaker 2 (16:24):
I'm Caroline Hepka and I'm Stephen Carroll. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak Europe
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