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Bloomberg Day Make You podcast, available every morning on Apple, Spotify or wherever you listen. It's Wednesday, the seventeenth of July in London. I'm Caroline Hepkare.
And I'm Stephen Carroll. Coming up today. The US Secret Service titled Donald Trump's security after uncovering intelligence of an Iranian plot to kill him unrelated to the weekend's assassination attempt.
And trump'lomics explained. The former president tells Bloomberg Business Week about his tariff and tax.
Plans, plus Starmer pledges to take the breaks off Britain. Labour's government agenda will be laid out in the King speech.
Let's start with a roundup of our top stories.
Bloomberg understands that security around former US President Donald Trump was increased by the Secret Service after picking up intelligence in recent weeks of an Iranian plot to assassinate him. As Chris Pitt reports, the threat was separate from the attempt on his life last weekend.
Officials say there is no indication that there's any link to Thomas Matthew Crooks, who's accused of shooting Trump at a rally on Saturday. The threat instead appears to be linked to his previous administration, stemming from the US killing of Kassam Sulimani, the head of Iran's Revolutionary Guard, in twenty twenty. Sources say the White House contacted the Secret Service about the threat, which then conveyed information about the
Iranian effort to Trump's campaign. Iran said in a social media post on x that the report of its involvement in a plot against Trump are baseless. In London, Chris Pitt Bloomberg Radio Now.
Prior to the assassination attempt and shortly before his debate with President Biden, Donald Trump spoke to Bloomberg BusinessWeek about his economic plans for a second term in office. The Republican presidential nominee waived off Wall Street concerns that he would usher in heart in inflation if he wins, and said that he would allowed your own pal to serve out his term as the head of the Federal Reserve. Reported.
Nancy Cook was one of the Bloomberg journalists who conducted the ninety minute print only interview, and said that she and her colleagues asked Trump if he wanted to remove Powell from his position.
He said, there's a lot of false information out there. These were his words. And then we asked him if he would allow j. Powell to serve out the term that Biden appointed him to, which is through twenty twenty eight, and he said he would allow him to serve. He did add the caveat like, as long as I thought
he was doing things right. He said he did not think that they should cut interest rates before the election, sort of again implying that if they did, that would be like a political move to sort of help Biden. And also he sort of resisted several questions that we asked him about sort of nudging the FED or what he would do.
Nancy Cook says that Trump also told her he wants to bring the corporate tax rate to as low as fifteen percent, and that he'd even considered Jamie Diamond to head the US Treasury.
Now.
The full Bloomberg BusinessWeek interview from Bradstone and Nancy Cook is available now on the terminal well for subscribers on Bloomberg dot com.
The comments from Donald Trump about not wanting rate cuts until after the election come as Wall Street economists have weighed in with the opposite view. Prominent voices including Goldman Sachs GYP for economist Ian Hatziis, Queen's College Cambridge president Muhammad al Aarian, and Relaisance Macro Research as Neil Dutta are all warning that the FED is waiting too long to cut, but policymakers, including Governor Adrianna Kugler, appear more cautious.
If economic conditions continue to evolve in this favorable manner, with more rapid disinflation as has been evidence in the inflation data from the past three months, and if employment continues to soften but remains resilient as has been seen in the last few jobs reports, I anticipate it will be appropriate to begin easy monetary policy later this year.
Kogler is a voting member of the FOMC. Her comments match current market expectations, with investors betting on at least two cuts before the end of twenty twenty four, starting in September.
Now, the United States has told allies that it is considering using the most severe trade restrictions against companies including Tokyo Electron and ASML, if they continue to give China access to advanced semiconducted technology. Bloomberg has learned that the Biden administration is examining the use of the Foreign Direct Product Rule, which would increase controls on items that use
even the tiniest amount of American technology. It comes as ASML has reported just this morning on second quarter bookings, they came in at five point five seven billion euros. That is a beat on the estimate of four point four one billion. The Dutch chip equipment maker also announced an interim dividend of a Euro fifty two per share, and the company says that it still expects an industry recovery to continue into the second half of this year.
HSBC is appointed George L. Hedrie as its new CEO. He's been with the bank for nearly two decades and is currently Chief Financial Officer. Al Hendri will take over in the role from the second of September. Current CEO nol Quinn announced his retirement from the top job in April.
The UK's new Prime Minister, Kis Starmer says that it's time to take the breaks off Britain. It comes as he prepares to lay out his government's agenda in the King's Speech later today. Bluebooks tiva Adebayo has the details.
It's a century's old tradition. King Charles the Third will outline a list of bills the new Labour government plans to deliver. Kiss Starmer says the laws will lay the foundations for the reform he thinks the country needs and make people better off. The speech includes manifesto pledgers like the creation of a state owned energy company and measures on workers' rights, immigration, and the nationalization of the railways.
Sources say of the previous Conservative administration. Will also feature such as a progressive smoking ban and boosting renters' rights in London, do You Added by Bloomberg.
Radio, Nigel Musk says the headquarters for X and SpaceX will both relocate to Texas. More from Bloomberg's Charlie Pallace.
The Billionaire Site's frustration over laws in California, where both companies are currently based. Musk made the announcement on his ex social media site. He cited a new law in California which became the first state to ban school districts from requiring teachers to notify parents about changes to a student sexual orientation and gender identity. SpaceX's headquarters are currently
located in Hawthorne, California. But the company has been building out a large facility in South Texas dubbed Starbase over the last few years.
In New York, Charlie Pellett Bloomberg Radio, we in a moment, we'll bring you more on the threate to Donald Trump, pluses into the Bloomberg Business Week and look ahead towards to expect from the King's speech here in the UK as well.
But first, twenty four billion dollars, that's how much has been wiped off the fortunes of the ultra rich whose wealth comes from luxury products.
Just this year.
Our colleague Tarpatal in Paris has been crunching the numbers on this. Of course, we've seen demand for luxury goods weaken in some places. That's been a feature of some of the earning supports we've already had out from this sector. But some of the biggest names, the likes of belna Alnau, who built LVMH. He was knocked off the top spot
of the Bloomberg Billionaire's Index. The heiress of Lariel Francois betten Cormeyer's also lost her crown earlier this month, briefly as the world's wealthiest woman and the Caring founder France. Poipino has also seen his fortune have over the last three years to twenty eight billion dollars.
It's a lovely bit of reporting, but I would just add, hang on, they had a great run in the pandemic, right you saw the price tag increases on luxury items were immense, sometimes in the kind of double digits. The issue now does seem to be out of those initial kind of earnings reports China, the weakness in China, the hesitancy of consumers there. So yeah, they had a good run in the pandemics, what I'd.
Say true, and there is still growth in some parts of the world as well. But there's another factor of this as well, and that's the election in France which hit equities there too, and those three French companies in particular being hit as part of that as well. So more details on how the ultra rich and the luxury sector have been affected by that in that report by Tarapatalio finders on Bloomberg dot Command on the terminal.
Okay, let's get more now on our top story, the intelligence suggesting an Iranian threat against Donald Trump, as he's been speaking to Bloomberg about his plans for the US economy. Bloomberg's senior editor Bill Ferries joins US Now for more. Good morning, Bill. What do we know exactly about this intelligence about an Iranian plot against Trump?
Right? Thanks for having me. Yes, we're still trying to get some of the details on this, but it seems like in the week's proceeding this last weekend's attempt on Donald Trump's life, that the US intelligence agencies in the White House learned of an Iranian plot against the former president. It was not linked to the shooter involved in this last weeknd's pot, but apparently the Secret Service had already boosted some of its measures around Donald Trump to help
prevent that kind of an attack. And it's something we've seen a threat against a number of former Trump administration officials. A lot of that tied to the administration's killing of the top Iranian general, case of Solimani in early twenty twenty. We know that officials like former Secretary of State Mike Pompeo, former National Security Advisor John Bolton, those men all have added security, which is unusual for a former official because
of those threats. But this is the first time we've learned about a direct threat against Donald Trump himself.
Okay, and of course this unrelated to happened over the weekend, and actually before that assassination attempt, Bloomberg has been speaking to Donald Trump about his plans, particularly for the US economy. But what did we learn about his plans on economic policy?
Well, lots of interesting information coming out of that interview. One was not a big surprise. He considered Trump was long considered his twenty seventeen Tax Cuts and Jobs Act that lowered corporate it and some individual taxes to be like one of the hallmarks of his administration that is set to expire at the end of twenty twenty five. He says he would expand that he would extend it. He'd also like to see corporate tax rates come down
at least a percentage point or two. But some of his most interesting comments may have been on the Federal Reserve. As you guys know, the markets have been pricing in a couple of cuts this year based on the latest information. Donald Trump warned the Fed. He said the Fed should
not be making any cuts before the election. He would, you know, I think the interpretation is that he would see that as a political benefit to current president Joe Biden, but he also said that he wouldn't plan to try to oust fed share J. Powell before the end of his term unless he did something unusual. But you know, Trump appointed Powell, he soured on him eventually, but he said he would keep him in place at least for the time being.
Okay, Briefly, he also did discuss foreign policy in conversation with Bloomberg. His views on tariffs, China, and Taiwan.
He's still a big fan of tariffs. He's talked about raising tariffs on all imported goods ten percent or more, raising tariffs even more on China and on Taiwan. He came out and he said Taiwan had stolen the chip industry from the US. He didn't commit to defending the island if it's attacked, if it's attacked by China, and that would be a very explicit change in US foreign policy,
particularly from the Biden administration. So I think policy makers in Asia will have a lot to think about if Trump goes ahead and continues his lead and this campaign and wins election in November.
Okay, Bill Ferries, I've seen your Editorde thanks very much for joining us.
Now to the UK the Labor Government sets out it's agenda, with some thirty five bills expected in the King's Speech later today. Economic growth will be the main focus of plans for legislation and workers' rights, re forming planning regulations, setting up a publicly owned energy company and a board of security bill. Joining us now, as Blueberg's UK correspondent Lizzie Burden, to take us through all the different things
that we're expecting in this King's speech. Good morning, Lizzie, Morning Caroline.
Yeah, So it sets the narrative for the Starma government. This it's really a moment of theater. I look forward to all the pageantry in UK politics, but it marks the start of the parliamentary year. You'll have the King in the House of Lords delivering the speech and policy wise, as you say, the focus will be on economic growth.
National renewal will be the framing for these thirty five bills that departments will introduce and so for example, there'll be a bill to strengthen the Office for Budget Responsibility, the fiscal watchdog. You remember Liz Truss as Prime Minister sidelined the OBR in twenty twenty two to the dismay of the market. So this bill is expected to make
sure that that never can happen legally again. There's also going to be a launch of the National Wealth Fund to drive inbound investment that's been outlined by the Chancellor Rachel Reeves already and Great British Energy, this publicly owned clean power company. And then there'll be sort of the unfinished business from the Sunac government, the Progressive smoking Band renting reforms, so as I say, sets the tone for the new government.
But there are likely to be some mini rebellions.
Labor MPs laying amendments to the speech which for example, calling for the two child benefit cap to be lifted.
They argue that it fuels child poverty.
The government says there isn't the fiscal room to change the policy yet, and the government would say that this sort of rebellion isn't going to have much impact given the scale of Labour's majority.
Okay and Lizzie, we also get the gin inflation of data this morning. Could they tempt the Bank of England to an August cut?
Well, economists they're expecting a drop from two percent in May to one point nine percent in June, so below the Bank of England's two percent target and this print, you're right, is going to be really closely monitored by the Bank of England and August rate cut is already on a knife edge in terms of traders bets right now, so dubvish data would give the bank cover for an August cut, which would be a boon, of course, a
care starmer. Interestingly, yesterday you saw the two year yield falling below four percent for guilts for the first time this year on the expectation that cuts are coming soon. But you'll remember you did have this unexpected strength in the April and May readings, even if inflation is now back at target. And if you look at the recent Bank of England speak from Chief economist Hugh pill he's hinted that he's going to be looking past looking through
individual data points at the underlying longer term trends. So that suggests that August really is far from a done deal and you still could see some volatility in the market office reading.
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