Bloomberg Audio Studios, podcasts, radio news. This is the Bloemberg Day by cur podcast. Good morning, It's Monday, the fourteenth of July. I'm Caroline Hepkeit in London.
And I'm Stephen Caroline Brussels. Coming up today, the EU lines up allies and countermeasures as Trump threatens a thirty percent tariff from the first of August if no agreement can be reached.
Help wanted, but not by humans. UK hiring tumbles as AI disrupts jobs and payroll costs search in another worrying sign for Starmer and Reeves.
Plus why Europe's defense ramp up is creating an opportunity for Sweden's Grippen fighter jet to take off.
Let's start with a roundup of our top stories.
The European Union is looking to step up engagement with other countries hit by Trump's tariffs following a slew of new threats. Sources tell us that the EU has reached out to nations including Canada and Japan and raise the prospect of a coordinated response to US levies. The move comes after President Trump unleashed his latest tariff ultimatum over the weekend. The US President declared that the EU and Mexico would face a thirty percent tariff if agreements can't
be reached by the first of August. European Commissioned President or Slavonderlon says she's hopeful of a deal.
We prefer a negotiated solution.
This remains the case and we will use the time that we have not the.
First of August.
Our Savanderlyn says the EU Opini Union will extend the suspension of trade countermeasures against the US until the start of next month in a bid to secure a deal. At the same time, Germany's Chancellor Friedrich Martz said thirty percent tariffs would hit exporters in Europe's largest economies to the core if a negotiated solution in the trade conflict can't be found.
China's export growth has accelerated for the first time since March. Exports rose on year by are higher than expected five point eight percent in June to three hundred and twenty five billion dollars. Bluebag's mid min Low says the pickup was driven by a reduction in the US tariffs and robust demand from key overseas markets.
The exports are really basted by the trade trews the front loading of shipment's economists have been telling us that we really have to prepare for a potential, you know, fall off in demand for exports in the second half
of the year. And of course we are still waiting for the mid August deadline when the temporary truths will expire, and some economists believe it's still a possibility that maybe the tariff levels could still increase in the later half of this year, So there's still a lot of uncertainty there.
Mid min Low speaking there, the US tariffs on Chinese goods have been cut back to around fifty five percent, down from as high as one hundred and forty five percent in early April. However, Beijing faces mounting risks from Washington's evolving trade strategy. Treasury Sexuri Scott best Center is expected to meet his Chinese counterpart in the coming weeks.
Bloomberg understands that Jane Street has deposited over forty eight billion rupees the equivalent of five hundred and sixty four million dollars in an escrow account to comply with an order from India's market regulator. It comes after these Securities and Exchange Board of India temporarily banned the trading giant from accessing the local market over allegations of index manipulation.
The deposit enables Jane Street to resume trading in India, but sources say the firm does not intend to return to trading in local equity options. While Jane Street has not commented on the latest development, it has previously stated that it strongly rejects the premise and substance of the regulator's order, calling it fundamentally mistaken about its trades now here.
In the UK, hiring by businesses is down by the most in nearly two years, according to data from the consultancy KPMG and the Recruitment and Employment Confederation. The numbers come as employers show signs of dialing back hiring for jobs likely to be affected by artificial intelligence. Bloomberg tu Adebayo has more.
Online job postings in the UK have dropped thirty one percent in the three months to May compared to twenty twenty two. According to McKinsey analysis, The decline is being felt most in sectors with the potential to be significantly altered by AI, including areas such as tech and finance. Data shows job for hostings for these sorts of roles dropped almost twice as much as others. The trend presents another drag on a job market already contending with tax
increases and stalling economic growth. In London, Tia Adebayo Bloomberg Radio Britain.
Has announced today for the state visit from US President Donald Trump. The country will host the American leader from the seventeenth of September after Prime Minister Keir Starmer invited Trump for a rare second visit. Bloombergs James Wilcock has.
More flashy can get you a long way. In Britain's case, flattery seems to have helped Keir Starmer secure a twenty percentage point lower tariff rate than that of the EU, which would be a major coup if it holds and global leaders admit to taking notes from this moment, Can.
I present a letter from m King to take it away in.
Rash oh as well, well, that is really nice.
A very special letter. I think the last state visit was a tremendous success. His Matchley King wants to make this even better than that. So this is this is truly historic, an unprecedented second visit so can Stam perform a second flourish and leave the UK's pageantry industry into real gains on trade and security.
From the US leader in London, James Wilcock, Bloomberg Radio.
President Donald Chomp says that the US will send more Patriot air defense batteries to Ukraine as long as Europe pays. The move is a change of heart for the US leader, who had argued that sending more arms would delay any peace deal. Ukraine had been receiving US weapons, but only with money remaining from Joe Biden's time in office. President Trump says that he won't be footing the bill for the new deliveries.
I haven't agreed on the number yet, but they're gonna have some because they do need protection. But the European Union is paying for it. We're not paying any big port, but we will send it. It'll be business for US, and we will send them patriots, which they desperately need.
The President added that he is very disappointed with Russian President Vladimir Putin. NATO Chief Mark Russa is scheduled to meet with Trump later today, as Axios reports that Trump will announce a new plan for Ukraine that also includes offensive weapons.
And the Sports and Asianic Center is captured as first Wimbledon title after defeating the defending champion, Carlos Alcaraz in four sets. Speaking after the match, the Italian world number one acknowledge the challenges he's faced this year.
I'm very emotional now if I don't cry, but it feels feels emotional because only me and the people who are close to me know exactly what we have been through on and off the court, and it has been everything except easier.
Alex Centner, who also served a three month doping ban earlier in the year. Speaking there, that's where chelseacuins the Football Club World Cup title, beating Paris anger Man three nil in the final. The London side were presented with the trophy by US President Donald Trump at the MetLife Stadium in New Jersey.
Those are top stories for you this morning. Let's have a look at markets where stop futures are tumbling right now for Europe down by half of one percent for the U of stocks, fifty futures, real concerns around President Trump's tariff threat of thirty percent against europe s and P five founded evening futures also annursing some declines, down four tenths this morning, looking at the Euro marginally lower against the dollar, down about a tenth of one percent
for the Euro one sixteen seventy five. The Mexican pay so is also down two terms against the dollar because it's another country in the sites of President Trump with tariff's. Asian eggities are mixed. You've got the topics up at the costpit also seeing some gains, but we've had some declines, for example for the Taiwanese stock market looking at treasure
yields hovering about four forty one. The only other really big notable move again is in bitcoin one hundred and twenty one thousand dollars, so it's breaking has broken through another record high for bitcoin. Those are the market.
Stephen.
In a moment, we'll bring you the latest on the US EU trade moves, plus why Sweden's fighter jet industry could be poised for takeoff. But another story we've been reading this morning from our opinion Columnst. Howard Troy One who has been writing about getting healthy again. While a little bit older at sixty six, I decided to get
healthy again. As the essay that he's written for Bloomberg's weekend edition with some interesting I mean, we've like to feature Horod's writing a lot, because, yes, he writes beautifully and in a very sort of relatable way about some of the kind of challenges he's had, like taking up
running in his sixties. Again he gave it up earlier because of an injury as well, and he's kind of talking about the challenges of trying to be as active as possible, yes, while also not compromising entirely on the things that he enjoys in life, like eating out.
Yeah.
Absolutely, he's a Bob Vivarce. He just is such a great writer also that he often goes back to, you know, ancient texts, which I just love. You know, he brings up lots of kind of Roman writers and he's got all sorts of interesting quotes that he includes in kind of philosophical thinking. But it was based on science because he was looking at this recent scientific study that anybody who might be a little bit older have probably spotted,
which is that apparently we age at certain points. It doesn't sort of happen gradually, but around the age of forty four and around the age of sixty, you can kind of age quite rapidly, so he was trying to reverse that target and just.
Like that effect, you know, and just like that, you're feeling much older than perhaps you were last week or the week before. There's great advice in there though from Horod too, and essentially, I mean a lot of it just comes down to don't give up and doing a little is better than doing nothing at all. And you will put a link to the piece in our show notes. It's a great read this morning.
Now let's bring you more on our top story. So the EU is preparing to step up contacts with the likes of Canada and Japan after Donald Trump threatened to impose tariffs of thirty percent on its exports. EU Trade Minister is a meeting in Bussels today to discuss the latest our Bussels Bureau chief Suzanne Lynch is joining us now for more. Susan, good morning. What do we know about the latest steps that the EU is planning. Is this about trying to form alliances against the US?
Well, we reported late last night that the EU is preparing to step up engagement with other countries that are hit by the Trump tariffs. Mainly, it seemed after this week of Donald Trump digging down on his trade rhetoric, sending those letters to various trading partners, and then at the weekend announcing or threatening the European Union and Mexico with new tariffs. So we know that there is plan
out coordinate a lot better on this. But at the same time, we've got the EU at the other hand, signally quite strongly by Ursula vonderlyon on Sunday that they don't want to escalate at the moment, and that they're holding back implementing any more countermeasures until they try and get some kind of a deal before this new August first deadline.
Suzan, talk to us about the strategy that the EU is taking here, Because the decision not to retaliate is a choice, does it indicate that they are hopeful that progress can be made between now and the first of August.
Well, it's interesting timing because today, as you mentioned, EU trade ministers are meeting here in Brussels, but today is also the deadline by which as suspended tariffs on stealing aluminum expire. So the EU had a choice today as it happens, whether to extend that suspension or to enact that suspension again. And those tariffs again. So we've heard very strongly from vonder lyon that at the moment today the EU won't do that that it will allow that
suspension to continue. So it did have that option if you like, and they have chosen not to do that. Now, what it's interesting is that we you know, we're hearing that, for example, from President Macron. If you look at the language he used on Saturday when he responded to this kind of shock move by Trump. He talked about the
fact that the Commission has to protect European interests. He talked about preparing series of countermeasures, including this trade tool called the anti coercion instruments that could you know, allow the EU to hit back even stronger. He mentioned those things. Now, the EU hasn't gone there yet, and I say it is at this moment deciding not to go any further.
But it will be interesting to see, you know, if there is some pushback now today when EU trade ministers meeting that some countries perhaps believe, look, the EU needs to be stronger on this because you know, as we've discussed before, the EU does have these other measures that can take It has other sanctions that it can implement if it chooses to do so.
Okay, well, let's watch that closely. Suzanne, thank you so much for being with us this morning. That is Bloomberg's Brussels pier A chief, Suzanne Lynch.
The move to ramp up defense spending in Europe is presenting an opportunity for the gripp and Jet, made by Sweden's SAAB. The company hasn't secured an export order since twenty fourteen, but that might be about to change. Our reporter Christopher Youngstadt joins us now for more from Stockholm. Christopher, good morning. Is this the moment then for the Grip and fighter jet?
It should does look like it's a moment definitely. As you mentioned, it's been over a decade since saw one
a major export order for it. It's grouping chats, but in the past year both Thailand and Columbia have decided that they do want to place orders and these are now being negotiated with SAB targeting deals being finalized this year and the next in line could be ordered from Peru and the Philippines, with Brazil potentially also boosting its existing contract for thirty six jets by twenty five percent.
And as SAB CEO Michael Johansson said in his typical understated fashion, it's been a while since the company was in such an intensive period on the glip in front.
Well, lot Keith Martin's F thirty five fighter jets of course of dominated order books in Europe, but here too, countries sort of looking for alternatives.
Right, Yeah, Thirteen European countries are our current F thirty five customers, and that's including Sweden's neighbors Norway, Denmark and Finland, while SAB in its turn, has just leased griepin jet to the Czech Republic and Hungary. The fact that Sweden hasn't been a NATO member has historically been one of their competitor's main arguments for not buying the Glippen, but with Sweden now a member, that's of course gone from
their playbooks. What's potentially an even bigger change, however, is the foreign policy shift of the Trumpet administration, pulling back support as we all know, for Ukraine and raising doubts about US commitment to Europe's defense, which is quite frankly uncharted territory for European leaders.
So what's the hope then, in terms of new orders for the GREEP and JATA and for SAB that makes it well.
SAW executives have long emphasized that the procurement of a fighter jet is as much a political process as it is a purely technical one. Buying weapons and military gear from the US has long been viewed as a fool proof method to reach guaranteed friendship and support, but that is now, of course no longer the case, with some security analysts believing that trust in the US will never
go back to pre Trump levels. Consequently, European countries are now trying to tow the line between lessening their dependence on the US and maintaining a healthy relationship as allies.
Some are starting to consider jewel fleets, that is, mixing European made fighters with their thirty fives and this to make up for a potentially lower level of US air support in the reas, and some analysts expect European countries to spend a far smaller portion of its defense spending on US equipment over time, as such supplies more of a song fighter aircarecraft.
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