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This is the Blueberg Day BAQ podcast, available every morning on Apple, Spotify or wherever you listen. It's Tuesday, the tenth of June in London.
I'm Caroline Hepke and I'm Stephen Carroll. Coming up today. US President Donald Trump deploys the Marines to Los Angeles in response to anti deportation protests as Democrats accuse him of inflaming tensions.
Europe's IPO drought, leave Stock Exchange is battling for listings in an increasingly shallow pool.
Plus focusing on core changes, Apple unveils the most sweeping software redesign in its history, as its troubled AI efforts take a back seat.
Let's start with the roundup of our top stories.
We begin with the unrest in Los Angeles. The Trump admitter station says it is deploying seven hundred Marines to the city as political tensions with Democrats grow. The White House says conditions in La or spiral and that federal forces are needed to support immigration agents and restore order.
President Donald Trump and California's Governor Gavin Newsom have classed repeatedly over the response to the unrest, with the States suing the Trump administration for mobilizing National Guard troops in the city. Here's Los Angeles Democratic Mayor Karen Bass.
They're guarding the federal building here in downtown, and they're guarding the Federal building in Westwood. That's what they're doing, So they need marines on top of it. I don't understand that. That's why I feel like we are part of an experiment that we did not ask to be a part of.
Mayor Karen Bass, speaking there as the United Nations on Monday warned against a further militarization of the situation in la On Monday, largely peaceful daytime protests morphed into a fourth day of scattered clashes with police. The protests, which have been largely limited to a few small parts of the city, were sparked by a rising number of raids by immigration agents, which local officials argue have spread fear in immigrant communities.
Now to the trade talks I mentioned US China trade talks will continue for a second day in London as both sides seek to ease tensions over rare earth supplies and tech exports. Blueberk understands that the US is offering to ease some tech export controls in exchange for rare earth shipments from China, which produces seventy percent of global supplies.
US Treasury Sectary Scott best sent and Commo Sexuy Howard Lutnik have been leading the American delegation, with Lutnik calling the talks after the first day fruitful, a sentiment echoed by President Trump.
We are doing well with China.
China's not easy. I think we're doing very well. They're over there now. I'm only getting good reports.
So that was President Trump.
Although optimistic about the talks, President Trump gave no clear answer on lifting export restrictions, saying we'll see when he was asked.
Europe stock exchanges are fighting fiercely to win the few IPOs left looming across the continent. Data compiled by Bloomberg shows Europe has made up just eight percent of global issuance so far this year. That's against the yearly average of sixteen percent or more for the last decade.
James Wilcock has more.
You may not have heard of Vismer or they're sure that the stock exchange in Stockholm, London, Zurich, and Amsterdam have one's a software company and the other makes alarms, but both are expected to list at valuations potentially worth more than twenty billion euros. Europe's capital markets are trying their best to charm these potential public companies after being
starved of new listings. And for the exchanges you miss out, alarm bells will be ringing in London, James Wilcock, Bloomberg Radio.
Now.
The UK government has reversed an unpopular cut that it made to pensioners' winter few benefits. A pension is with an income of under thirty five thousand pounds per year will now be able to claim extra money to heat their homes during the winter. It is a u turn that Chancellor Rachel Reeves says she can afford because she has stabilized the UK economy.
We did that with a number of difficult decisions. But because of those decisions, our public finances are now in a better position, which means this year we're able to play the winter fuel payment to more pensioners. Nine million we'll receive it this year.
The Chancellor earlier this year had to make last minute changes to curb disability benefits to return her fiscal headroom to just under ten billion pounds. The governing Labor Party has seen an abrupt fall from popularity since taking office last year, with most polls putting the party now second place to Reform UK.
We're staying in the UK.
The government is to invest fourteen point two billion pounds to help the build the Size wells See nuclear plant in Suffolk and Eastern England, a project that's already been on the drawing board for more than a decade remembers EU and parts has more.
When completed, the three point two gigawatts Size or See nuclear plant will generate enough power for six million homes, which the government hopes will usher in a quote golden age of abundant clean energy. The total price tag for this clean energy, though, is likely to surpass forty billion pounds. Today's announcement, ahead of tomorrow's spending review, brings the government's total commitment to Size well See to just shy of eighteen billion pounds, meaning there's plenty to do in raising
funds from the private sector. In London, I'm un pots Bloomberg Radio.
To some corporate news now, Berklays is preparing to acts more than two hundred investment bank jobs in a bid to cut costs. The move is part of CEO CSVN Kunta Krishnan's plan to boost the profitability of the division. Bloomberg understands that managing directors will be the most senior employees affected by the changes, which are expected to reduce
the lender's head count by around three percent. A Berkeley spokesperson said that the cuts are part of regular talent pool reviews to ensure continued investment in priority areas.
Apple has introduced a host of new artificial intelligence features in a bid to match its companty. The announcements made during the firm's Worldwide Developers Conference yesterday include an expanded relationship with chat GPT maker open Ai. For Bloomberg's Ed Ludlow says the news was marred by concerns about the firms Siri software.
The stock did drop sharply, literally in the opening minutes of the keynote presentation, and a part of that was senior Apple executives basically saying, we have nothing to say about Siri right now, the kind of core of Apple intelligence, and we won't hear more about that later in the year. Even though expectations around what Apple would or would not
say around AI were pretty low going into this. The concern coming out today was, well, did we hear enough that we understand the roadmap forward when it comes to Apple and AI?
That's Benber Technology correspondent Ed Ludlow speaking there. The new capabilities will help Apple's iOS operating system start to match some of the features being offered by Samsung and Google's Android devices.
And those are a few of our top stories for you this morning. Well think you about Apple. The share price fell by one point two percent at the close on Monday after that keynote speech at the Worldwide Developers Conference. In terms of more broadly though, what we're thinking about,
it's day two of these US China trade talks. Asian traders seem to have been shrugging off for any tariff fears, even though the effective tariff rate at the moment for imports into the US is about seven spots zero seven percent. But as I say, US officials have been quite optimistic. So if you look at the Asian session, you got the Msciaged Specific Index up by six tens of one percent, the Nike is up nine tenths of one percent, the hang saying up three tens of one percent, you get
the picture. In terms of stop futures for the US also positive, The S and P five founded up four tenths of one percent, so climbing.
To a three month high.
The dollar strengthening against most FX pairing, so up by almost two tenths of one percent on the bloomberg A Dollar Spot Index. The euros in retreat, so too is the Japanese yen, and the pound is down a tenth of one percent. Looking at the bottom markets then, ahead of the inflation data that we get from the US on Wednesday, tenure US yields little changed at four forty eight.
Bitcoin though is heading towards another record high, and we're hovering around one hundred and nine thousand, five hundred dollars just below that level. So those are the markets.
In a moment, we'll bring you the latest on events in Los Angeles, plus where we are in the US China trade talks which continue today in London. But an other words on a story that we've been reading this morning hungrily early this morning, and this is the National Restaurant Awards rankings here in the UK, so list of the one hundred best restaurants and fine dining is the big winner, according to our food editor Kate crater As coming out on top of the list was the restaurant in the Ritz.
It's classical dining room.
So this is sort of an interesting shift around the kind of restaurants that are coming out on top of these things.
It's back to the classics.
Absolutely, it's that kind of you know, white gloves service. It's the Ritz, It's the swankiest hotel in London. It's not quite the priciest. Maybe they do at least have a menu at tasting many for five courses at one hundred and ninety nine pounds, so I suppose that's not not too much of a nosebleed moment. Chef John Williams has got this kind of classic fine dining restaurant has one out.
I mean, I hope everyone else will enjoy. Also the activity that I've been to this morning, which is trying to count many of the top one hundred I've been to. The full list is in k Craters piece. I think I got to around ten, which I'm pretty happy about.
It too taken me to one.
We were discussing that earlier we have been to one of them together. That's true, but there is I mean plenty of options that it's also a nod to some restaurants no longer with us as it were Lisles and London came in at twenty one and that closed recently ensured it here in London. But we'll put a link to the article on our podcast show Notes. You can read the full list for yourself.
Now let's get to our top story today. The Trump administration is sending around seven hundred hours active duty marines to respond to protests in Los Angeles. The California Governor, Garret vin Newsom has called the decision unlawful and has requested the White House revoke the order. Joining us now, as our senior editor, Bill Ferries, Good morning, Bill, there have been some images actually emerging we think of these marines deploying active duty military within the US. It is
highly unusual. How has the president justified this?
Hi?
Yeah, thanks for having me.
You're right.
We have seen some images coming from the LA Times of soldiers looking like they're leaving the twenty nine Palms base and heading to Los Angeles, and a big caravan of buses. So far, it is, as you mentioned, highly unusual. It's highly unusual for the president to deploy National Guard without a request from the state governor or from a
local mayor. That hasn't happened since the nineteen sixties. It's even more unusual to be putting active duty troops, and there's a lot of legal restrictions about how you do that.
The president.
The president is using this provision of US law that allows the domestic deployment of troops in the case of invasion by a foreign nation, a rebellion, or the danger of a rebellion, and that's one of the things California officials are immediately taking taking putting a question to saying that there really is there's no there's no invasion, and there's no rebellion. These are are legal protests, they're saying.
We did see on Monday that things seem to have, i want to say, calmed down a little bit from the weekend when you saw those waymo cars getting burned and more people having disputes or being fighting back and forth with authorities. So it was a relatively calm more day compared to the weekend. But as you said, these troops are look like they're heading for Los Angeles, and you still have several hundred National Guard forces on the streets.
Now.
Yeah, indeed, because this has been part of the debate, is that while the Trump administration claims the situation is bad enough to warrant having marines in there, what is happening on the ground appears to be much more limited and certainly scattered being the word that our colleagues in Los Angeles have used to describe the protests that have
happened in the past twenty four hours. Took us through what the Californian officials, Governor Gavin Newsom and the mayor of La Karen Bass, have been saying about this.
Well, they're saying that it's the federal response that has actually made the situation worse. It's helped provoke some of the people who are out on the streets at this point, and even local officials La the LA Sheriff saying that, you know, things weren't looking great, but officials, local authorities had it under control and they're you know, they've sued local the California officials have now sued the federal government
over its response. It's not clear how long that will take to play out in the court, but as we've seen, you know, I don't think the White House and the Trump administration has really been deterred by the threat of lawsuits so far. So I think, you know, California officials are hoping they can get this de escalated and prevent any more violence before these marines arrive, before there's any kind of more and more of a deployment on the streets of Los Angeles.
And yet again it seems to be a major decision that may come down to a judge in terms of the kind of legal action.
Yeah. Absolutely, I mean, it's definitely it's definitely the style of the Trump administration to sort of push up against legal boundaries and then fight to see if what they've done can be accepted by the courts. We've seen that throughout this battle over immigration. We've seen it when it comes to foreign students in the US studying in American colleges. We've seen it in the fight with the universities like
Harvard and Columbia. It is, you know, this is a maximalist presidency, and the White House does focus on seeing, you know, where exactly the boundaries to their authorities and powers are.
But another story that even monitoring for us this morning has been the US China trade talks happening here in London heading into a second day today, Are there any signs of progress?
Well, the fact that I think there's a second day of talks is probably some sign of progress. You had I think six hours of discussions yesterday. It went till about eight pm London time there restarting today. President Trump was out earlier saying he thinks the US is doing well with China, but he said China's not easy. It's the second time in the last couple of weeks he's talked about the difficulties of negotiating with China, but talks
expected to continue today. There is some reporting from our side that China may ease those restrictions on rare earth shipments, and in turn, the Trump administration would look at easing some of the measures they've put in, most recently that targeted chip design software sales to China, as well as the sale of jet engine parts that China really needs. So both sides seeming to potentially give up something here to get trade talks back on a better track.
This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Streets and beyond.
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I'm Caroline Hepka and I'm Stephen Carroll.
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