Trump Threatens Japan; Powell Mulls July Rate Cut; Starmer Weakened | Daybreak Europe 07/02/2025

Trump Threatens Japan; Powell Mulls July Rate Cut; Starmer Weakened | Daybreak Europe 07/02/2025

TOM: IN.
THIS IS BLOOMBERG DAYBREAK EUROPE.
ONE WEEK TO GO, SHARES DOWN AND JAPAN AS PRESIDENT TRUMP WREPS
UP CRITICISM OF TOKYO AND SAYS HIS JULY 9 GLOBAL TARIFF
DEADLINE WILL NOT BE EXTENDED. POWELL’S PUSHBACK.
THE FED CHAIR SAYS RATES ARE ON HOLD BECAUSE OF U.S. TARIFFS.
HE DOESN’T RULE OUT A CUT IN JULY. STARMER WEEKEND. WELFARE LEGISLATION PASSES
PARLIAMENT BUT ONLY AFTER THE MAIN PROVISIONS WERE DROPPED,
LEAVING A POTENTIAL 5 BILLION POUND HOLE IN GOVERNMENT
FINANCES. GOOD MORNING.
THE TARIFF RHETORIC IS BACK, SO IS UNCERTAINTY AND TRUMP TRYING
TO PUSH WHEN WE MAY SEE AS HIS ADVANTAGE IN TERMS OF
NEGOTIATIONS WITH JAPAN AS WE COUNT DOWN TO THE JULY 9
DEADLINE. HE SAYS HE WILL MOVE IT.
JOBS DATA OUT FRONT WILL DROP THURSDAY.
THAT COULD BE A CATALYST FOR MARKETS AS THEY WEIGH THE
COMMENTS FROM POWELL, NOT CLOSING THE DOOR ON A POTENTIAL
CUT FOR JULY. NOT BEING PRAISED BY MARKETS,
20% ODDS BUT POWELL NOT SHUTTING THAT DOWN COMPLETELY. EUROPEAN FUTURES HIRED 0.6%
AFTER THREE STRAIGHT DAYS OF LOSSES FOR EUROPEAN STOCKS.
THE LOSSES HAVE BEEN THERE FOR THREE STRAIGHT DAYS.
FUTURES SLIGHTLY BRIGHTER TODAY WHEN IT COMES TO EUROPE.
FTSE AND THE U.K. LOOKING TO ADD 0.3%, WE HAVE A
WEAKENED PRIME MINISTER. S&P FUTURES LOOKING TO GAIN 0.2
PERCENT STATESIDE AFTER LOSSES YESTERDAY AND A ROTATION OUT OF
THE NASDAQ WHICH CLOSED 100 BY — LOWER BY 0.8%.
GAINS IN THE SMALL, MID-CAP STOCKS SO A ROTATION INTO
SMALLER CAP STOCKS STATESIDE. NASDAQ TODAY 100 HIGHER BY 3%.
RELATIVE STABILITY TODAY, 4.25 AS WE COUNT DOWN TO PAYROLL
DATA TUESDAY. EURO-DOLLAR 1.17, NEAR THE 1.18
LEVELS ON EURO STRENGTH. A LITTLE SOFTER BY 0.1%.
BRENT $67 PER BARREL AND GOLD MARGINALLY HIGHER.
LET’S GO TO ASIA. AVRIL HONG HAS THE FOCUS ON
JAPAN. AVRIL: ABSOLUTELY, ESPECIALLY AFTER
TRUMP EXPRESSED FRUSTRATION OVER STALLED TRADE TALKS,
SINGLING OUT JAPAN OVER RICE AND AUTOS.
THAT IS WHERE THE GULF REMAINS BETWEEN U.S.
AND JAPANESE NEGOTIATORS. ASIA STOCKS ARE MOSTLY IN
RETREAT, GIVEN THE REVIVAL OF THE TARIFF THREATS AND A
CAUTIOUS POWELL IS UNHELPFUL FOR EQUITIES IN THE REGION.
WE ARE SEEING THE NIKKEI DOWN FOR A SECOND DAY, PARING THE
DECLINES OF MORE THAN 1% FROM EARLIER.
THE HANG SENG IS AN OUTLIER BECAUSE OF MACAU CASINO STOCKS.
WORTH NOTING, WHEN IT COMES TO THE TRADE DEAL OPTIMISM, EVEN
IF WE SEE ONE, MOST THINK THE BASELINE 10% TARIFF RATE IS
HERE TO STAY WHICH WOULD MEAN CONTINUED HEADWINDS FOR EXPORT
RELIANT ECONOMIES IN THE REGION, NOT HELP FOR ASIA
STOCKS. ASIA CURRENCIES ON THE BACK
FOOT TODAY MOSTLY. THE YEN, THE RENMINBI, THE HONG
KONG DOLLAR, THE HONG KONG DOLLAR IS BELIEVED TO HAVE
TOUCHED THE WEEK END OF THE PERMITTED RANGE.
THE MONETARY AUTHORITY INTERVENED, BUYING UP LOCAL
CURRENCY TO DEFEND THE CURRENCY PEG. FLIP THE BOARD BECAUSE THIS
ADDS TO THE SENSE OF HONG KONG DOLLAR BEING ON A WIDE — WILD
RIDE. BACK IN MAY, THE DOLLAR SLUMPED
AND HONG KONG DOLLAR EXPERIENCED A RUSH FROM
INVESTORS. THAT LED TO THE APPRECIATION IN
THE LOCAL CURRENCY. THE RESPONSE WAS TO PUMP
LIQUIDITY INTO THE SYSTEM AND THAT LED TO A LOWERING IN
BOUGHT HER — BORROWING COSTS. THE POPULARITY TO FIND CARRY
TRADE’S AND THE WEAKNESS IN TURN OF THE HONG KONG DOLLAR.
IT IS INTERESTING TO SEE HOW THE GREENBACKS MOVE HAVE
INFLUENCED THE CENTRAL BANKS IN THE REGION AND NO DOUBT
INTENSIFIED THE DEBATE ABOUT THE SUSTAINABILITY OF THE HONG
KONG DOLLAR’S PEG AGAINST THE U.S. DOLLAR. TOM:
THE WILD RIDE, BACK IN FOCUS AROUND THE PEG.
AVRIL HONG, THANK YOU. PRESIDENT TRUMP SAYS HE IS
STICKING WITH THE JULY 9 TRADE DEAL DEADLINE WHILE RENEWING
THE THREAT TO CUT OFF TALKS AND SLAP DUTIES ON NATIONS
INCLUDING JAPAN. >> WRITING LETTERS TO A LOT OF
COUNTRIES AND I THINK YOU DON’T UNDERSTAND THE PROCESS.
WE DEALT WITH JAPAN. I’M NOT SURE WE ARE GOING TO
MAKE A DEAL. THEY ARE TOUGH. YOU WILL PAY A 35%, 30%,
WHATEVER THE NUMBER IS WE DETERMINE BECAUSE WE HAVE A BIG
TRADE DEFICIT WITH PAN — WITH JAPAN. TOM: JOINING ME IS BILL. THE PUSHBACK AGAINST JAPAN
SEEMS TO HAVE GROWN FROM TRUMP IN THE LAST FEW DAYS.
WHAT HAD — WHAT WE KNOW IN TERMS OF JAPAN’S RESPONSE?
IS TRUNK POSITIONING AHEAD OF A POTENTIAL DEAL OR IS THERE A
REAL CONCERN THAT RELATIONS IN TERMS OF TRADE TALKS COULD
BREAK DOWN? >> IT IS HARD TO KNOW.
WE ARE ONE WEEK OUT FROM THE JULY 9 DEADLINE.
IS THIS A TRUMP STRATEGY TO TIGHTEN THE SCREWS ON JAPAN TO
GET LAST-MINUTE CONCESSIONS IN THE FINAL DAYS, OR IS HE SO
FRUSTRATED WITH THE PACE OF NEGOTIATION THAT HE WANTS TO
SEND A LETTER SAYING 30%, 35 PERCENT, YOU ARE WELCOME?
WE DON’T KNOW YET. TRUMP’S STRATEGY IS TO TIGHTEN
THE SCREWS IN THE FINAL DAYS. I DO NOT THINK HE WILL ABOUT
EXTENDING THE JULY 9 DEADLINE FOR ANYONE UNTIL WE ARE IN THE
FINAL 24 HOURS. JAPAN HAS TAKEN A SOFT APPROACH
IN TERMS OF BEING OPTIMISTIC CAUTIOUSLY ABOUT WHERE THE
TALKS COULD GO. A MONTH OR TWO AGO WHEN THE
PROCESS STARTED, THE ADMINISTRATION SAID JAPAN WAS
ONE OF THE COUNTRIES MOST LIKELY TO MAKE A DEAL.
NOW THAT THE DEADLINE IS LOOMING, THEY SEEM TO BE
CHANGING THEIR TONE. IT IS HARD TO KNOW WHETHER THAT
IS REFLECTIVE OF HOW THEY SEE THE TALKS GOING OR IF THEY JUST
WANT A COUPLE MORE GIFT FROM JAPAN ON THINGS LIKE RICE AND
AUTOS. TOM: ON THE DOMESTIC AGENDA OF
PRESIDENT TRUMP, A WIN FOR THE PRESIDENT IN TERMS OF THE
SENATE BACKING THIS BIG BEAUTIFUL BILL WITH THE HELP OF
JD VANCE AND THE FINAL VOTE, THE TIEBREAKER.
NOW IT HEADS TO THE HOUSE. IS IT LIKELY TO GET THROUGH?
IS JULY 4 STILL A PROSPECT IN TERMS OF GETTING THE BILL ON
THE PRESIDENT’S DESK? >> IT WILL BE TIGHT.
THE PATH TO GETTING THE DEAL ON HIS DESK WILL BE ROCKY.
JULY 4, VERY MUCH IN DOUBT. THE SENATE MADE SEVERAL
SIGNIFICANT CHANGES TO HOUSE LEGISLATION.
THERE ARE MEMBERS, REPUBLICANS IN THE HOUSE LINING UP TO SAY
THEY DON’T LIKE THE DEAL, IT COSTS TOO MUCH AND MADE CHANGES
THEY DON’T FIND ACCEPTABLE. ON THE SENATE SIDE THE
REPUBLICANS CAN ONLY AFFORD TO LOSE THREE VOTES IN THE HOUSE.
SOME REPUBLICAN MEMBERS’S SAYING THEY ARE NO’S’S ON THIS.
NO TIEBREAKER VOTE ON THE HOUSE SIDE WITH JD VANCE SO WE WILL
BE ON PINS AND NEEDLES AS THE HOUSE TAKES THIS UP WEDNESDAY
MORNING. THE FRIDAY DEADLINE PRESIDENT
TRUMP SAID MAY HAVE TO SLIP INTO THE WEEKEND.
THEY MAY HAVE TO RECONFIGURE. WE WILL KNOW MORE IN THE NEXT
12-24 HOURS. TOM: BILL, WITH IMPORTANT DEADLINES
ON TRADE AND THE BILL. THE CENTRAL BANK POLICY AND
FEDERAL RESERVE CHAIR POWELL STICKING TO HIS WAIT AND SEE
MODE WHEN IT COMES TO RATE CUTS, SAYING THAT IS LARGELY
DOWN TO PRESIDENT TRUMP’S EXPANDED USE OF TARIFFS.
THIS IS WHAT HE TOLD FRANCINE AT A PANEL OF TOP CENTRAL
BANKERS IN PORTUGAL. >> WE WENT ON HOLD WHEN WE SAW THE SIZE OF THE TARIFFS AND ALL
INFLATION FORECASTS WENT UP MATERIALLY FOR THE U.S.
AS A CONSEQUENCE OF TARIFFS. WE DIDN’T OVERREACT.
WE DIDN’T REACT AT ALL. WE ARE TAKING TIME.
AS LONG AS THE U.S. ECONOMY IS IN SOLID SHAPE, WE
THINK THE PRUDENT THING TO DO IS WAIT AND LEARN MORE AND SEE
WHAT THOSE EFFECTS MIGHT BE. HAVEN’T REALLY SHOWN UP, SO FOR
NOW, WE ARE WAITING. TOM: FRANCINE JOINS US NOW.
FASCINATING COMMENTS FROM PABLO. YOU ASKED ABOUT THE PROSPECTS
OF A JULY RATE CUTS. DID HE LEAVE THE DOOR OPEN TO
THAT AS SOMETHING HE AND THE FOMC MAY CONSIDER? FRANCINE:
HE CERTAINLY DIDN’T RULE IT OUT. IT WAS INTERESTING, BEING ON A
HIGH-POWERED PANEL WITH FIVE OF THE MOST IMPORTANT CENTRAL
BANKERS IN THE WORLD AND THEY HAD SOMETHING IN COMMON,
PATIENTS, PATIENTS, PATIENTS BECAUSE THEY ARE WAITING FOR
THE EFFECTS OF TARIFFS TO UNDERSTAND BETTER WHICH IS WHY
POWELL PUSHED BACK AGAINST THE IDEA OF THAT, EVERY MEETING IS
NOT LIVE. HE SAYS IT IS MEETING BY
MEETING. LET’S SEE WHAT HAPPENS. THEY ARE VERY ALERT ON SHOCKS.
JAY POWELL IS WAITING TO SEE AS EVERYONE ELSE, THE EFFECTS OF
THE TARIFFS, WHICH ARE EXPECTED TO SHOW UP IN INFLATION DATA IN
THE U.S. IN COMING MONTHS AND WILL MAKE
DECISIONS ON A MEETING BY MEETING BASIS.
WHAT STRUCK ME WAS WHEN HE TALKED ABOUT BEING READY TO
ADJUST TO THE DOWNSIDE OR THE UPSIDE DEPENDING ON HOW THE
TARIFFS ACTUALLY PURSE THROUGH TO INFLATION.
GIVEN THE UNCERTAINTIES, WE HEARD FROM THE ECB PRESIDENT
CHRISTINE LAGARDE ABOUT SCENARIOS BECAUSE THAT WOULD
GIVE YOU A BETTER PICTURE OF WHAT THEY ARE FACING.
FIVE DIFFERENT CENTRAL BANKS, DIFFERENT ECONOMIES, BUT ALL WERE FOCUSED ON PATIENCE TO
FIGURE OUT HOW THIS UNCERTAINTY PLAYS OUT IN THE COMING MONTHS.
TOM: THE BANK OF ENGLAND HAS BEEN
PATIENT. YOU SPOKE TO BAILEY, SAYING
HIGH INTEREST RATES IN THE U.K. ARE HAVING LESS OF AN IMPACT.
WHAT DID HE MEAN BY THAT IN TERMS OF TRANSMISSION
MECHANISMS OF RATES IN THE WAY — IN THE U.K.? FRANCINE: YOU HAVE THE FED ON ONE SIDE,
AND PRESSURE FROM PRESIDENT TRUMP ON A DAILY BASIS, ON JAY
POWELL TO CUT RATES. WE HEARD FROM THE ECB PRESIDENT
ALMOST TAKING A VICTORY LAP, CLAIMING VICTORY WITH INFLATION
PRINTING AT 2% AND THEN YOU HAVE ANDREW BAILEY FROM THE
BANK OF ENGLAND IN THE MIDDLE. HE ACKNOWLEDGED THERE WAS
SOFTNESS IN U.K. WAGES AND ACTIVITY BUT REFUSED
TO PRE-COMMIT IN A CUT IN AUGUST. HE SAID THERE IS
PRODUCED RATE SENSITIVITY BECAUSE OF THE WAY SAVERS
BEHAVED POST-COVID WHICH IMPLIES MAYBE A SHALLOWER
EASING CYCLE GOING FORWARD. THIS IS WHAT HE SAID ABOUT
BASICALLY, THE IMPORTANCE BETWEEN SAVING, WHAT IT MEANS
FOR THE RATE CYCLE GOING FORWARD. >> THE LEVEL OF HOUSEHOLD AND
CORPORATE DEBT IS LOWER THAN WE EXPECTED.
BASED ON PAST EXPERIENCE. SO THAT FEEDS THROUGH INTO HOW
RESTRICTIVE POLICY IS AT A GIVEN INTEREST RATE.
IT IS LESS RESTRICTIVE THAN IT WOULD HAVE BEEN HISTORICALLY.
FRANCINE: BECAUSE OF THE TRANSMISSION
MECHANISM, BECAUSE OF LEGACY, WE HAVE COME THROUGH THREE OR
FOUR YEARS OF CHANGE IN THE WAKE SAVERS BEHAVE AND
CONSUMERS BEHAVE. HE SAID HE WOULDN’T COMMIT.
I ASKED WHETHER HE SAW 3% OR 4% AT THE END OF THE EASING CYCLE
AND DIDN’T COMMIT BUT HE SAID IT COULD BE SHALLOWER THAN HE
THOUGHT A COUPLE MONTHS AGO. TOM: 4:25 IN TERMS OF MARKET
EXPECTATIONS. DOWN TO 3.66 BY THE END OF THE
YEAR. FRANCINE, THANK YOU. WE WILL HAVE LIVE COVERAGE OF
THE ECB FORUM ALL DAY INCLUDING INTERVIEWS WITH BNP PARIBAS
CHIEF ECONOMIST AND CENTRAL BANKERS FROM SEVERAL COUNTRIES.
U.S. STOCKS RALLY STALLED YESTERDAY
AFTER PRESIDENT TRUMP SAID HE ISN’T CONSIDERING A DELAY TO
THE JULY 9 DEADLINE FOR HIGHER TARIFFS.
WE HAVE MARKET REACTION. >> THERE WERE INTERESTING
THINGS GOING ON. S&P 500 BACKING OFF RECORD
HIGHS BUT ALSO A DECENT ROTATION HAPPENING OUT ATTACK
INTO SMALL CAPS — OUT OF TECH INTO SMALL CAPS.
THE BIGGEST OUTPERFORMANCE OF RUSSELL 2000 VERSUS THE NASDAQ
100 SINCE APRIL SO THIS IS NOT SOMETHING WE SEE OFTEN.
QUESTIONS ABOUT WOULD PROVE THIS, THERE WAS A THOUGHT THE
SENATE TAX BILL HELPED DOMESTIC GROWTH, LEADING DOMESTIC
EXPOSED SMALL-CAP STOCKS HIGHER. THERE WAS A PAUSE TO MOMENTUM
TRADE, TESLA DOWN 5% SO THAT INJURED TECH STOCKS — HINDERED
TECH STOCKS. THE OTHER THING THAT HINDERED
THE EQUITY RALLY WAS A SUSTAINED RISE IN TWO YEAR
YIELDS. AFTER HITTING THE LOWEST IN TWO
MONTHS, AN ABRUPT RISE IN FRONT YIELDS AFTER
BETTER-THAN-EXPECTED U.S. JOB OPENINGS DATA AND
BETTER-THAN-EXPECTED ISM MANUFACTURING INDEX IMPROVE THE
FRONT-END YIELDS HIGHER YESTERDAY, SIX BASIS POINTS IN
THE LAST TWO SESSIONS. NORMALLY, THE DOLLAR IS HELPED
BY A RISING SHORT-TERM INTEREST RATE DIFFERENTIALS AND THAT
DIDN’T HAPPEN. WE SAW CONTINUED GAINS FOR THE
EURO-DOLLAR COME UP NOW FOR NINE STRAIGHT SESSIONS.
IT’S LONGEST WINNING STREAK IN 20 YEARS AS THE DOLLAR WEAKNESS
SHOWS NO SIGNS OF STOPPING. TOM: THEY EURO STORY CONTINUES FOR
STRENGTH WITH THE SINGLE CURRENCY.
WHAT ELSE TO THINK ABOUT, 10:00 A.M.
YOU PAY TIME UNEMPLOYMENT DATA WILL DROP.
1:30 P.M., ADDITIONAL DETAILS ON THE LABOR MARKET IN THE U.S.
AND U.S. ADP EMPLOYMENT AND NONFARM
PAYROLLS IS TOMORROW. 2:00 P.M., TESLAS SECOND
QUARTER SALES AS ELON MUSK TAKES OVER COVERAGE IN TERMS OF
FOCUS ON SALES. EUROPE HAS BEEN A CHALLENGE OF
THE U.S. AS WELL. GET A ROUNDUP OF THE STORIES
YOU NEED TO KNOW ON THE TERMINAL, GO TO DEBRIS —
DAYBREAK. ON THE FRONT IS TRUMP TAKING A
SWIPE AT JAPAN. SANTANDER AGREES TO BUY TSP IN
A DEAL WORTH 7 BILLION POUNDS. THE DETAILS ARE NEXT.
LATER, I WILL SPEAK TO THE INVENTOR OF THE POTENTIALLY
GROUNDBREAKING INVENTION THAT COULD CHANGE THE WAY SURGEONS
REPAIR DAMAGED NERVES. THIS IS BLOOMBERG. ♪ TOM: WELCOME BACK TO BLOOMBERG
DAYBREAK EUROPE. SANTANDER HAS AGREED TO BUY TSB
FROM ITS SPANISH RIVAL. THE DEAL IS WORTH 2.6 5 BILLION
POUNDS AND WILL MAKE SANTANDER THE U.K.’S THIRD-LARGEST LENDER
BY SOME MEASURES. FOR MORE, WE ARE JOINED FROM
HONG KONG. START US WITH THE STORY AROUND
SANTANDER-TSB AND HOW SIGNIFICANT THIS COULD BE TO
RESHAPE THE U.K. BANKING LANDSCAPE. MANUEL: YES, A SIGNIFICANT DEAL IN
BANKING IN THE U.K., ANOTHER ONE IN THE FINANCE SPACE ACROSS
EUROPE THIS YEAR. WE HAVE SEEN A LOT OF
CONSOLIDATION OR POTENTIAL CONSOLIDATION, BANKING IN
DIFFERENT COUNTRIES AND THIS IS THE LATEST ONE.
VERY IMPORTANT 1% AND THERE BECAUSE IT EMPHASIZES THE —
FOR SANTANDER BECAUSE IT EMPHASIZES THE IMPORTANCE OF
THE GROWTH STRATEGY AND HOW THEY WANT TO GROW IN THE U.K..
THERE WERE QUESTIONS OVER THE YEARS ON HOW SIGNIFICANT, HOW
IMPORTANT THIS MARKET COULD BE FOR SANTANDER.
IT IS A VERY IMPORTANT STATEMENT FROM THE BANK, SAYING
THEY ARE IN THE U.K. TO STAY AND GROW EXPONENTIALLY
THANKS TO THESE ACQUISITIONS. INTERESTINGLY, THE SELLER, FROM
SPAIN, IS ALSO IN THE MIDDLE OF THE TAKEOVER BID FROM A BIGGER
RIVAL, BBVA, WHICH WILL BE INTERESTING TO SEE, THE IMPACT
OF THESE TRANSACTIONS ON THE BBVA POTENTIAL POSITION AND
WHAT THE NEXT MOVES COULD POTENTIALLY BE ON THAT
TRANSACTION. DEFINITELY A CLEARER STATEMENT
FROM SANTANDER AND THE GROWTH PLANS FOR THE BANK IN THE U.K..
TOM: THE STATEMENT IS THERE. A REMINDER THAT THERE IS
BANKING CONSOLIDATION HAPPENING. WE WILL SEE WHAT HAPPENS.
IN THE U.K. AND EUROPE IN TERMS OF
CONSOLIDATION, IT IS HAPPENING. IN THE U.S., THERE IS ANOTHER
REASON POTENTIALLY TO BE HAPPY IF YOU HAVE SHARES IN BIG WALL
STREET LENDERS. THIS IS ON THE BACK OF THE
STRESS TESTS. MANUEL: YES, AS YOU RIGHTLY SAID, WITH
THE BANKS, THE MAJOR BANKS PASSING THE STRESS TEST THIS
YEAR FROM THE FED, ALL OF THEM ARE INCREASING PAYOUTS,
DIVIDENDS INCREASING SIGNIFICANTLY AS WELL FOR THIS
YEAR. THAT SHOULD MAKE INVESTORS HAPPY FOR SURE.
IT CLEARLY SHOWS THAT THE BANKS OF THOSE BUFFERS REQUIRED —
HAVE THOSE BUFFERS REQUIRED BY THE FED IN CASE THERE IS ANY
POTENTIAL CRISIS DOWN THE LINE, SO AN IMPORTANT MILESTONE FOR
THE BIGGEST BANKS IN THE U.S. AS WELL. TOM: BEFORE WE LET YOU GO, FROM
BANKS TO FARMING, ASTRAZENECA MAYBE MOVING OUT OF THE U.K..
MANUEL: INTERESTING TO SEE THE REPORT
BY THE TIMES ABOUT ASTRAZENECA. OBVIOUSLY, A LOT OF THE
COMPANIES IN THE U.K. HAVE BEEN LOOKING FOR WAYS TO
MAXIMIZE THEIR VALUE, AND MOVING THE PRIMARY LEASING TO
THE U.S., PARTICULARLY IN SECTORS LIKE PHARMACEUTICALS.
THIS COULD MAKE SOME SENSE. WE NEED TO BEAR IN MIND THAT
THE U.S. IS TRADITIONALLY A MUCH MORE
MATURE MARKET FOR SECTORS INCLUDING PHARMACEUTICALS,
BIOTECH, AND OBVIOUSLY, COMPANIES IN EUROPE OR IN THE
U.K., LIKE ACT — ASTRAZENECA, MAY CONTINUOUSLY EXPLORE
OPTIONS TO OFFER BETTER VALUE FOR SHAREHOLDERS. THE REPORT BY THE TIMES
MENTIONED FRUSTRATION ABOUT REGULATORY APPROVALS FOR DRUGS
AND DEVELOPMENT IN THE COUNTRY, AND WHETHER BUT COULD BE ONE OF
THE TRIGGERS FOR SUCH POTENTIAL MOVES. THAT REMAINS TO BE SEEN. OBVIOUSLY, FROM A COMPANY
EXPLORING OPTIONS, TO ACTUALLY EXECUTING THAT POTENTIAL MOVE,
THERE IS A LOT OF WORK TO BE DONE, AND A LOT OF WORK BEHIND
THE SCENES. BUT DEFINITELY, IF IT WERE TO
HAPPEN, IT WOULD POTENTIALLY BE A SIGNIFICANT BLOW FOR THE
U.K., AS A CAPITAL CENTER, GIVEN THAT IT IS AN ICONIC
COMPANY. TOM: ANOTHER MAJOR WAKE-UP CALL IN
TERMS OF THOSE OVERSEEING U.K. CAPITAL MARKETS.
THANK YOU VERY MUCH, ON THE BANKS OF THE PHARMA STAGE. SANTANDER WAS CEO WILL BE ON
THE — AND THE FRENCH PRESIDENT SAYS HE AND PUTIN AGREED TO
WORK TOGETHER ON IRAN AFTER THEIR FIRST PHONE CALL SINCE
2022. THE DETAILS, COMING UP. THIS IS BLOOMBERG. >> WE ARE DETERMINED TO
CONTINUE TO BE DATA-DEPENDENT AND DECIDE MEETING BY MEETING
AND NOT COMMIT TO ANY PARTICULAR RATE CUT. >> WE ARE GOING MEETING BY
MEETING. I MENTIONED HOW I’M THINKING
ABOUT THAT BUT I WOULDN’T TAKE ANY MEETING OFF THE TABLE OR
PUT IT DIRECTLY ON THE TABLE. IT WILL DEPEND ON HOW THE DATA
INVOLVES. A MAJORITY OF US FEEL IT WOULD
BE APPROPRIATE IN THE REMAINING FOUR MEETINGS OF THE YEAR TO
REDUCE RATES AGAIN. >> THEY WILL DEPEND ON THE
RELATIVE STRENGTH OF THE THREE PARTS OF ECONOMICS AND WE NEED
MORE INFORMATION. >> WE WILL HAVE TO SEE DOES
COME THROUGH. — SEE THOSE COME THROUGH
ENTERPRISES. WE LOOK FOR THE EVIDENCE AND
PRICES AND WITHOUT CONTEXT, THAT ALLOWS ME TO SAY I THINK
THE DIRECTION CONTINUES OF INTEREST RATES CONTINUES TO BE
DOWNWARDS. >> WE CUT INTEREST RATES 100 BP
FROM LAST OCTOBER AND WILL CONTINUE TO BE IN AND EASING
CYCLE EVEN THOUGH THE GROWTH RATE, RECENTLY FINANCIAL
STABILITY RISK HAS BEEN RISING SO WE ARE KEEPING AND I ON THE
FINANCIAL STABILITY RISK AND DECIDING THE PACE AND TIMING OF
FURTHER CUTS. TOM: CENTRAL BANKERS, SPEAKING WITH
FRANCINE AT THE ECB FORUM. ABOUT THE PACE AND TIMING OF
POTENTIAL INTEREST RATE CUTS. MAKING THE NEWS, THE GERMAN
MEDICAL TECHNOLOGY COMPANY BRAIN LAB POSTPONED THE IPO,
NOT GIVING A REASON BUT THE DEAL WAS EXPECTED TO PRICE AT
THE LOW END OF THE RANGE. THE GERMAN — A GERMAN CAR
PARTS RETAILER POSTPONED ITS FRANKFURT OFFERING.
THE ATHENS STOCK EXCHANGE PURCHASE.
WE WILL KEEP ACROSS THAT STORY FOR YOU COMING UP.
KEIR STARMER AND HIS WOES. THIS IS BLOOMBERG. >> GOOD MORNING MORNING.
THIS IS BLOOMBERG DAYBREAK: EUROPE.
THESE ARE THE STORIES THAT SET YOUR AGENDA. ONE WEEK TO GO.
SHARES DOWN AND JAPAN AS PRESIDENT TRUMP RAMPS UP
CRITICISM OF TOKYO AND SAYS THIS JULY 9 GLOBAL TERROR OF
DEADLINE WILL BE EXTENDED. POWELL’S PUSHBACK.
RATES ON HOLD BECAUSE OF U.S. TARIFFS.
HE DOESN’T RULE OUT A CUT IN JULY.
PLUS, THE YOU CAVE’S WELFARE LEGISLATION PASSES PARLIAMENT
BUT ONLY AFTER ITS PROVISIONS WERE DROPPED, LEAVING A
POTENTIAL 5 BILLION POUND WHOLE IN THE GOVERNMENT FINANCES.
LET’S CHECK IN ON THE MARKETS RIGHT NOW.
EUROPEAN FUTURES POINTING HIGHER .
LOOKING TO GAIN FOR TENS OF 1%. THE NEXT CATALYST FOR THE
MARKETS COULD BE THE NONFARM PAYROLL DATA.
JOBS DATA OUT OF THE U.S. EXPECTED TO SHOW COOLING BUT
NOT A LABOR MARKET THAT’S COMPLETELY DERAILED.
FTSE 100 FUTURES POINTING TO GAINS OF THREE TONS OF 1%.
MODEST LOSSES YESTERDAY. LOOKING TO ADD TO TENSE OF 1%. ROTATION OUT OF MEGA TECH
STOCKS INTO THE RUSSELL 2000 YESTERDAY.
THAT INDEX UP OVER 1% BY THE END OF THE CLOSE.
TREASURIES RELATIVELY STABLE. JAY POWELL SAYING THAT PLANS TO
CUT HAVE BEEN DERAILED BY THE TARIFF REGIME.
NOT CLOSING THE DOOR COMPLETELY THOUGH ON JULY AS A MONTH WHEN
THEY CONNECT AGAIN. FOR 24 ON THE U.S.
BENCHMARK 10 YEAR. 118 ON EURO-DOLLAR.
BRENT UP BY 1/10. GOLD ALSO GAINING BY THREE
POINTS. TO THE U.K.. AFTERMARKET KEY IS,
DRAMATICALLY ABANDONED HIS FLAGSHIP WELFARE REFORMS TO
AVOID WHAT WOULD HAVE BEEN HIS FIRST-EVER DEFEAT IN PARLIAMENT.
AT WHAT COST TO HIS AUTHORITY AND TO THE NATION’S FINANCES?
LIZZY BURDEN JOINS US NOW FOR MORE. HOW WEEKEND IS THE U.K.
MINISTER NOW? >> KEY IS FACED AN UGLY CHOICE
BEFORE THIS VOTE. ON THE ONE HAND, HE COULD HAVE
LOST A KEY VOTE AS YOU SAY. IT’S NOT ONE HE SHOULD’VE
STRUGGLED TO PASS THEORETICALLY, GIVEN HE HAS
THIS HUGE HISTORIC MP MAJORITY. HIS OTHER CHOICE WAS TO MAKE A
U-TURN. IT WAS ON THIS BILL, THIS
WELFARE REFORM BILL. PARTICULARLY THE CONTENTIOUS
PART WAS RESTRICTING BENEFIT PAYMENTS TO SOME DISABLED
PEOPLE FROM NEXT YEAR. SOME OF THE LABOUR MP’S WERE
SAYING THAT THAT WAS DICKENSIAN. HE IS, — PS,.
THIS LAST-MINUTE CHANGE MEANS THAT HE’S GIVEN UP ALL THE
SAVINGS THAT REFORM WOULD GIVEN HIM IN THE FIRST PLACE.
THAT MEANS IT’S EVEN MORE LIKELY THAT THE CHANCELLOR IS GOING TO HAVE TO EITHER CHANGE
IN AUTUMN OR CHANGE OR FISCAL RULES. IT MEANS HER JOB IS UNDER
THREAT. HE’S WEAKER THAN EVER. THE GOVERNMENTS BILLIONS OF
POUNDS IN THE RED. TOM: AS WE KEEP AN EYE ON THE BOND
MARKETS, TALK US THROUGH WHAT PRESSURE IS ON NOW THE U.K.
CHANCELLOR ON A NUMBER OF FRONTS.
RACHEL REEVES IS FEELING THE HEAT. >> SHE IS INDEED.
THE FISCAL WATCHDOG ADMITTED YESTERDAY THAT IT’S BEEN TOO
OPTIMISTIC. MORE OPTIMISTIC THAN CONSENSUS
WHEN IT COMES TO THE MEDIUM GROWTH OUTLOOK.
MEDIUM-TERM GROWTH OUTLOOK. THAT’S IMPORTANT OF COURSE
BECAUSE WHEN IT COMES TO THAT AUTUMN BUDGET, THEY WILL HAVE
TO COME OUT WITH THEIR UPDATED FORECAST FOR GROWTH AND
PRODUCTIVITY. IF THEY GET DOWNGRADED AFTER
THEY INVESTIGATE THIS OVER THE SUMMER, IT WILL LEAVE RACHEL
REEVES EVEN LESS HEADROOM AND SHE ALREADY HAD A RAZOR THIN
MARGIN AGAINST OR FISCAL RULES THE LAST TIME SHE RAISED TAXES.
IT MAKES IT MORE LIKELY SHE’S GOING TO HAVE TO RAISE TAXES
AGAIN. THAT MEANS THERE WOULD BE LESS
GROWTH. IT LEAVES THE U.K. ECONOMY IN THIS DOOM LOOP.
IT’S A DIFFICULT POSITION TO BE IN FOR THE CHANCELLOR.
IT LEAVES A LOT OF HEAVY LIFTING TO TRADE DEALS. STARMER HAS FEW CARDS TO PLAY
AT THIS MOMENT TO BOOST GROWTH. DOES HE NEED TO COZY UP TO
BRUSSELS? HE WAS ONCE THE ARCH REMAINDER.
A BIG QUESTION THERE. TOM: A DEEP CHALLENGE FOR THE U.K.
PRIME MINISTER. THANK YOU.
TO THE FRENCH PRESIDENT RIGHT NOW.
EMMANUEL MACRON AND VLADIMIR PUTIN HAVE HELD THEIR FIRST
PHONE CALL SINCE 2022, AGREEING TO COORDINATE THEIR APPROACH ON
IRAN. THE DISCUSSION AS PART OF AN
EFFORT AMONG THE FIVE PERMANENT U.N.
SECURED COUNCILMEMBERS TO FORGE A COMMON STRATEGY ON IRAN.
LET’S BRING IN OLIVER CROOK WHO’S BEEN FOLLOWING THIS FOR
US. WHAT’S BEHIND THE MOVE THERE?
PICKING UP THE PHONE AT A TIME WHEN FRANCE CONTINUES TO
SUPPORT UKRAINE AGAINST RUSSIAN AGGRESSION. >> FAIRLY SIGNIFICANT SHIFT.
THE FIRST TIME THEY SPOKE SINCE 2022. YOU WILL REMEMBER OLAF SCHOLZ
WEEKS AFTER TRUMP WAS ELECTED PRESIDENT REACHED OUT TO
VLADIMIR PUTIN IN A SHIFT OF WHAT’S HAPPENING DIPLOMATICALLY
AND YOU POLITICALLY. THEY SPOKE FOR OVER TWO HOURS.
THERE WASN’T ANY SORT OF MASSIVE BREAKTHROUGH BUT IT IS
SIGNIFICANT THAT THEY ARE TALKING AT A TIME WHEN
EUROPEANS ARE FINDING DIFFICULTY IN WAYS TO ASSERT
THEMSELVES ON GEOPOLITICAL CONFLICTS AROUND THE WORLD, ON
IRAN AND UKRAINE. WE HAVE THE READ OUT THE
CONVERSATION. THEY TALKED FOR TWO HOURS PLUS.
THEY SAID THEY AGREED TO MAINTAIN CONTACT IN ORDER TO
CORDATE THEIR STANCES ON IRAN IF NECESSARY.
MAYBE PUTTING DOWN ON THAT. THEY ALSO TALKED ABOUT UKRAINE.
THE RUSSIAN POSITION HAS NOT CHANGED.
VLADIMIR PUTIN DOESN’T GIVE ANYTHING AWAY WHEN HE DOESN’T
NEED TO. EMMANUEL MACRON ALSO SPOKE TO
ZELENSKYY. WE JUST GOT THE NEWS FROM THE
PENTAGON THAT THEY ARE GOING TO NOT GIVE ALL OF THE MUNITIONS
THAT THEY HAVE BEEN PROMISING FROM THE BIDEN ADMINISTRATION
BECAUSE THEY SAY THEIR OWN STOCKPILES ARE LOW, AT A TIME
WHEN PUTIN HAS BEEN RAMPING UP THE ATTACKS ON DRONES AND
MISSILES IN THE WAKE OF THE ATTACKS OVER AROUND WHEN THE
REST OF THE WORLD HAS BEEN DISTRACTED.
THE UKRAINIANS WILL BE FEELING THE PRESSURE. TOM:
THOSE ADDITIONAL SANCTIONS ARE READY TO GO.
HE COULD PULL THE TRIGGER ON THOSE. YET THE PRESIDENT SEEMS
RELUCTANT TO DO THAT. TO ANOTHER PART OF THE MIDDLE
EAST THEN. THAT’S THE FOCUS ON AROUND BY
MICRON AND THE RUSSIANS. WHEN IT COMES TO GAZA, WHAT’S
THE UPDATE THERE? WHAT HAVE WE BEEN HEARING FROM
THE U.S. SIDE ON THE BRUTAL SITUATION IN
GAZA? OLIVER: WE HAD A TRUE SOCIAL FROM THE
PRESIDENT YESTERDAY. HE SAID THAT ISRAEL HAS AGREED
TO THE CONDITIONS FOR A 60 DAY CEASE FIRE.
NOW THAT TIME WOULD BE DEVOTED TO ENDING THE WAR FULLY WITHIN
GAZA, EGYPT AND QATAR WILL DELIVER THIS REMARK TO HAMAS.
HE SAYS HE WOULD LIKE A MOSQUE TO SAY YES.
IF THEY DON’T, THINGS WILL SAY — GET WORSE.
IT’S HARD TO SAY WHAT HAS CHANGED FROM A MONTH AGO.
YOU HAD THE SAME SITUATION. HAMAS SAID, OUR CONDITION IS
THAT YOU NEED TO GUARANTEE THE EXIT OF ISRAELI TROOPS FROM
GAZA AND THAT WAS REJECTED. THAT WAS DROPPED RIGHT THEN AND
THERE. WHAT HAS REALLY CHANGED THEIR
FROM THE HAMAS PERSPECTIVE? OBVIOUSLY THERE’S BEEN A HUGE
AMOUNT OF DISTRACTION FROM WHAT’S GOING ON.
NOT SO MUCH FOCUSED ON GAZA. A HUGE AMOUNT OF CHAOS AROUND
THIS A DISTRIBUTION OVER THE PAST COUPLE WEEKS.
THE PRESSURE MOUNTING THERE. THE NEXT THING TO WATCH FOR IS
WHAT HAMAS RESPONSE. WE ARE EXPENSING BENJAMIN
NETANYAHU TO MEET WITH PRESIDENT TRUMP JULY 7.
THAT’S THE NEXT THING TO WATCH FOR. TOM:
WE LOOK AHEAD TO THAT MEETING. OLIVER CROOK, THANK YOU VERY
MUCH. WE WILL SEE IF THERE’S ANY SUBSTANCE TO THIS CEASE FIRE
OPPORTUNITY THAT PRESIDENT TRUMP SEEMS TO BE PUSHING FOR.
THE U.S. HAS STOPPED THE LIVERIES OF
ARTILLERY ROUNDS UKRAINE AFTER REVIEW OF MISSION — MUNITION
STOCKPILES. THE WHITE HOUSE AS IT FOLLOWS
CONCERNS THAT U.S. WEAPON STOCKS HAVE FALLEN TO
LOWER. UKRAINE STRUGGLES TO REPEL
RECORD MISSILE AND DRONE STRIKES BY RUSSIA WHICH HAVE
INTENSIFIED IN RECENT WEEKS. ELON MUSK MOVES TO SHORE UP
TESLA. POLITICS IS BACK AT THE FOUR.
IN PARTICULAR HIS RELATIONSHIP WITH PRESIDENT DONALD TRUMP. TRUMP SUGGESTED THAT DOGE COULD
BE UNLEASHED ON THE SUBSIDIES FOR THE BILLIONAIRES BUSINESSES.
>> WE MIGHT HAVE TO PUT DOGE ON ELON. YOU KNOW?
THE MONSTER THAT MIGHT HAVE TO GO BACK AND EAT EAT ON.
WAS GOING TO HAPPEN IS THAT DOG IS GOING TO LOOK AT MOSQUE.
IF IT DOES, WE WILL SAVE A FORTUNE.
THINK YOU VERY MUCH EVERYBODY. I DON’T THINK YOU SHOULD BE
PLAYING THAT GAME WITH ME. TOM: OK. DANNY LEE JOINS US FROM HONG
KONG. JUST AT HIS — AS IT APPEARS
THEY REACH A DETENTE, THERE’S A NEW WORLD WORDS.
WHAT’S GOING ON? >> AFTER ELON MUSK AMPED UP HIS
CRITICISM OF THIS BIG TAX AND SPENDING BILL GOING THROUGH
WASHINGTON, PRESIDENT DONALD TRUMP FIRED BACK ONCE AGAIN,
TAKING AIM AT THE BILLIONS OF SUBSIDIES THAT TESLA BENEFITS
FROM YEAR AFTER YEAR. ALSO THEN GOING FURTHER AND
PUTTING MORE PRESSURE ON MOSQUE. QUESTIONING HIS IMMIGRATION
STATUS. MUSK, BEING SOUTH AFRICAN BORN,
HAS U.S. CITIZENSHIP. THE KIND OF TOPLINE FROM ALL OF
THIS IS THAT IT LEADS MORE HEAT ON TESLA POLITICALLY, AT A TIME
IT IS STRUGGLING TO REVIVE SALES , AS IT’S TRYING TO TRY
TO HIM MUDDLE ITS WAY THROUGH A WHOLE LIST OF EXECUTIVE
DEPARTURES. THIS IS NOT WHAT MUSK WANTS
FRANKLY. PARTICULARLY AS TWO OF THE
WORLD’S MOST POWERFUL PEOPLE ONCE AGAIN. TOM:
YOU TOUCH ON THE CHANGES AND CHALLENGES THAT TESLA.
ONE OF THOSE CHANGES IS MUSK TAKING CONTROL OF SALES IN
EUROPE AND THE U.S.. WHAT IS THE SIGNIFICANCE OF
THIS? DANNY: ELON MUSK IS REALLY PUTTING HIS
WEIGHT WHERE HIS MOUTH IS. AFTER STEPPING BACK INTO TAKING
GREATER REIGN OF TESLA AFTER LEAVING DOGE HIMSELF, INVESTORS
WANTED TO SEE WHAT MORE ELON MUSK COULD DO TO PUT MAGIC BACK
INTO TESLA AND TO REVISE SALES ONCE AGAIN.
I TAKING CONTROL OF SALES IN NORTH AMERICA AND EUROPE, LET’S
SEE WHAT HE CAN DO. PARTICULARLY AFTER — LEFT THE
COMPANY. HAS LEFT A SHANK UP IN ITS
RANKS. GOING TO KEEP OVERSEEING
CHINESE SALES AND ASIA SALES. ALSO OVERSEE GLOBAL
MANUFACTURING. THESE CHANGES, HOPEFULLY
ENSURING THAT THERE’S ENOUGH BANDWIDTH FOR MOSQUE TO
CONTINUE TWEETING BUT ALSO TO MAKE SURE HE CAN REVIVE TESLA
SALES, MORE IMPORTANTLY. TOM: WE GET MORE DATA ON THE SALES
PICTURE LATER TODAY. THIS IS SECOND QUARTER SALES
FIGURES. WHAT ARE YOU LOOKING FOR? >> WE EXPECT SALES NUMBERS AT
390,000 FOR THE SECOND QUARTER. THAT WOULD REPRESENT 10 TO 12%
DECLINE YEAR ON YEAR. IT DEPENDS ON WHERE THE NUMBERS
LAND EITHER SIDE OF THAT PARTICULAR EXPECTATION FROM THE
MARKETS AREA — MARKETS. WE SAW A DROP IN THE SHARES OF
AROUND 5.3% ON THE CLOSE ON WALL STREET YESTERDAY.
JUST HOW MUCH MORE WHETHER TESLA SALES WILL BE OR MISS.
THIS WILL BE CLOSELY WATCHED AND COULD PUT THE SHARES BACK
UNDER PRESSURE ONCE AGAIN. TOM:
DANNY LEE, THANK YOU VERY MUCH INDEED.
THE FOCUS ONCE AGAIN ON MOSQUE AND TESLA AND WHETHER THOSE
NUMBERS CAN SURE OF CONFIDENCE IN THE BRAND. THANK YOU.
WE WILL BE JOINED BY THE INVENTOR OF A SYSTEM THAT COULD
IMPROVE OUTCOMES FOR PEOPLE WITH NERVE DAMAGE.
SOME INNOVATION IN THE PHARMA SPACE AND SOME BACKING FROM THE
FDA. THE REGULATORS STATESIDE. WE WILL TALK ABOUT ALL OF THAT
NEXT. THIS IS BLOOMBERG. ♪ TOM: WELCOME BACK TO BLOOMBERG
DAYBREAK: EUROPE YOUR GET SOMETHING
DIFFERENT NOW BUT POTENTIALLY WITH BROAD CONSEQUENCES FOR THE
MEDICAL SPACE. THE U.S. FDA HAS GIVEN AUTHORIZATION TO
MARKET A SYSTEM DEVELOPED TO REPAIR DAMAGED NERVES WITHOUT
STITCHES. THE TECHNOLOGY HOLDS THE
DAMAGED NERVE TOGETHER WITH THE BIOPOLYMER WHICH CAN BE
PROGRAMMED TO MATCH THE SURROUNDING TISSUE.
WE ARE JOINED NOW BY THE COFOUNDER AND CHIEF INNOVATION
OFFICER OF THE FRENCH MED TECH COMPANY WHICH HAS RAISED 200
MILLION EUROS AS WELL. GOOD MORNING AND THANK YOU FOR
JOINING US. WHAT IS A PROGRAMMABLE POLYMER?
WHAT IS THE SIGNIFICANCE OF THIS TECHNOLOGY? >> GOOD MORNING.
SO IT’S A MEDICAL DEVICE COMPANY DEVELOPING A NEW CLASS
OF MATERIALS THAT CAN BE USED FOR TISSUE REPAIR. OUR GOAL IS TO DEPLOY THESE
MATERIAL SOLUTIONS TO REPAIR DAMAGED TISSUES AND RESTORE
FORM AND FUNCTION. SO WE ARE CURRENTLY DEVELOPING
A PIPELINE OF SOLUTIONS. REALLY, THE GOAL IS TO LEVERAGE
THESE MATERIALS TO REPLACE SOME OF THE EXISTING TECHNOLOGY FOR
TISSUE REPAIRS, SUCH AS SUTURES AND STAPLES OR TAGS.
THAT EFFECTIVE TECHNOLOGY STILL CAN DAMAGE THE TISSUE.
THERE ARE CERTAIN TISSUES THAT ARE VERY FRAGILE WHERE THEY
CANNOT BE EFFECTIVE. SO DEVELOPING THESE BIOPOLYMERS
WITH THE GOAL OF PROMOTING A DRAMATIC AND SUTURE LIST TISSUE
PREPARE. IT’S OUR FIRST PRODUCT ON OUR
PIPELINE THAT WE ARE DEPLOYING STARTING WITH THE U.S. MARKET. OLIVER: — TOM:
YOU CAME UP WITH THE PAULA MORE. — POLYMER.
WHAT DOES IT MEAN THAT YOU CAN DO THAT YOU COULDN’T OTHERWISE
DO? >> YEAH.
THE AUTHORIZATION BASICALLY ALLOWS US TO DO THE COMMERCIAL
LAUNCH OF THIS FIRST SOLUTION LEVERAGING THIS POLYMER
TECHNOLOGY INTO THE U.S. MARKET. AS A COMPANY, WE HAVE GLOBAL
AND FOR — AMBITIONS. THE U.S. REMAINS A KEY MARKET FOR US AND
WE ARE VERY EXCITED TO BE ABLE TO BRING THIS TECHNOLOGY AND
THE SOLUTION TO SURGEONS AND PATIENTS WHERE IT WILL HAVE ITS
IMPACT. WE ARE DEVELOPING A PIPELINE OF
OTHER PRODUCTS LEVERAGING DESIGN TECHNOLOGIES ACROSS
DIFFERENT FIELDS, GREAT DEMONSTRATIONS AS TO THE
POTENTIAL OF THE TECHNOLOGY. THE SAME TECHNOLOGY AGAINST
DIFFERENT DOMAINS WITH THE GOAL OF PROMOTING A DRAMATIC TISSUE
REPAIR. TOM: WHAT IS THE TIMELINE FOR
COMMERCIALIZATION? HOW QUICKLY CAN YOU
COMMERCIALIZE THIS PRODUCT? WHAT IS THE POTENTIAL MARKET
SIZE OF THIS INNOVATION? >> YEAH.
SO WE HAVE BEEN WORKING, IN ADDITION OF WORKING ON THE FDA
APPROVAL, ON HAVING THIS FIRST SOLUTION, WE HAVE BEEN QUITE
PROACTIVE WORKING ON OUR SUPPLY CHAIN, COMMERCIAL OPERATIONS.
WE HAVE ALREADY A STRONG PRESENCE IN U.S.
WITH OUR CLINICAL, REGULATORY, COMMERCIAL TEAMS. THE LAUNCH OF
THE PRODUCT IN U.S. IS GOING TO TAKE PLACE IN THE
COMING MONTHS. THE MARKET AS A WHOLE IS AROUND
2 BILLION. TOM: A 2 BILLION-DOLLAR MARKET.
YOU MENTIONED OTHER PRODUCTS IN THE PIPELINE.
GIVE US AN IDEA OF WHAT YOU WERE WORKING ON BE ON THIS ONE. >> YES.
IN ADDITION TO THIS PRODUCT, WE ALSO HAVE A SOLUTION FOR REPAIR
TO BASICALLY FIX MEASURES IN THE ABDOMINAL CABINET — CAVITY
WITHOUT USING SUTURES. THAT’S CURRENTLY IN CLINICAL
STAGE. WE CURRENTLY HAVE AN ONGOING
CLINICAL TRIAL IN EUROPE AND WORKING VERY CLOSELY WITH THE
FDA TO BRING THIS TECHNOLOGY TO THE MARKET AS EFFECTIVELY AS
POSSIBLE. WE ALSO HAVE DEVELOPED A
CARDIOVASCULAR SEALANT. WE HAVE SOME EARLY TESTING IN
EUROPE FOR THE EARLY VERSION OF THE POLYMER IN EUROPE.
ALSO WORKING VERY CLOSELY WITH REGULATORS IN THE U.S.
TO BRING THIS TECHNOLOGY TO THE MARKET. REALLY EXCITED ABOUT OUR
PIPELINE AND HOW WE CAN CREATE A NEW STANDARD FOR TISSUE
FIXATION. THAT’S OUR GOAL. TOM: YOU HAVE TALKED ABOUT BRINGING
A NEW PRODUCT TO MARKET EVERY YEAR WHICH SEEMS AMBITIOUS.
YOU’VE RAISED 200 MILLION EUROS. ARGUE FUNDRAISING AGAIN?
DO YOU EXPECT TO FUND RAISE AGAIN THIS YEAR?
WHAT ARE YOUR IPO PLANS? >> WE ALWAYS HAVE A VERY
PROACTIVE APPROACH TO FUNDRAISING.
WE CONTINUE TO WORK WITH EXISTING INVESTORS AND NEW
INVESTORS TO REALLY CONTINUE TO FUND OUR OPERATIONS.
MAKE SURE THAT WE CAN FULLY LEVERAGE THE POTENTIAL OF THE
TECHNOLOGY ACROSS THESE DIFFERENT SPACES.
WE ARE VERY PROACTIVE ON THE APPROACH AND CONTINUE TO WORK
CLOSELY WITH INVESTORS. TOM: AN IPO IS SOMETHING YOU ARE
CONSIDERING? >> TIME WILL TELL. I THINK RIGHT NOW WE ARE A
PRIVATE COMPANY AND WE WILL ADVANCE AS NEEDED TO MAKE SURE
WE CAN SUCCESSFULLY BE THE STANDARD FOR TISSUE REPAIR. TOM:
THANK YOU. THERE’S A LOT MORE COMING UP.
A BREAKDOWN OF WHAT TO EXPECT IN THE NONFARM PAYROLLS DATA.
WE WILL GIVE YOU AN OUTLINE AS WELL OF THE TESLA DELIVERIES
SECOND-QUARTER, COMING THROUGH LATER TODAY. WHAT TO ZERO IN ON.
STAY WITH US. THIS IS BLOOMBERG. >> CLEARLY AN IMPORTANT YEAR.
THERE’S A LOT GOING ON. WITH TRAINED.
I’M HOPEFUL THAT WE WILL LOOK BACK ON IT AS A YEAR THAT WE
SEE THAT SIGNIFICANT, SUCCESSFUL CHALLENGE OF
SIGNIFICANT ECONOMIC CHANGES. OUR JOB IS TO MAKE SURE THAT
THAT IS THE CASE. >> YOU GET ATTACKED BY THE
PRESIDENT A LOT ON A PERSONAL BASIS.
DOES IT MAKE YOUR JOB HARDER? >> I’M VERY FOCUSED ON JUST
DOING MY JOB. THE THINGS THAT MATTER ARE
USING OUR TOOLS TO ACHIEVE THE GOALS THAT CONGRESS HAS GIVEN
US. MAXIMUM EMPLOYMENT. PRICE STABILITY.
THAT’S WHAT WE FOCUS ON 100%. [APPLAUSE] >> IF YOU ARE IN THE SAME
POSITION AS CHAIR POWELL, WOULD YOU DO ANYTHING DIFFERENTLY? >> I THINK I SPEAK FOR MYSELF
BUT I SPEAK FOR ALL COLLEAGUES ON THE PANEL.
WE WOULD DO THE EXACT SAME THING AS OUR COLLEAGUE JAY
POWELL DOES. THE SAME THING. RIGHT? >> YES. [LAUGHTER] TOM:
CENTRAL BANK GOVERNORS SHOWING SOLIDARITY WITH JAY POWELL.
HE’S COME UNDER ATTACK FROM PRESIDENT TRUMP ON A FAIRLY
REGULAR BASIS, AS FRANCINE LACQUA WAS POINTING OUT.
THE NEXT BIG CATALYST COULD BE THE NONFARM PAYROLL DATA.
MARKETS NOW PRICING IN ABOUT 60 BASIS POINTS OF CUTS BUT NOT
COMPLETELY ROLLING OUT JAY POWELL. A POTENTIAL CUT IN JULY.
HE DID SAY HE WANTS TO SEE DATA THAT COMES THROUGH.
HE EXPECTS THE INFLATION COME THROUGH TOWARDS THE END OF THE
SUMMER. IT SUGGESTS THAT JULY IS UNLIKELY. 60 BASIS POINTS.
NONFARM PAYROLL DATA COULD CHANGE THAT EQUATION.
IT DROPS TOMORROW BECAUSE OF THE HOLIDAY ON FRIDAY.
THE ESTIMATES, THE SURVEY IS LOOKING AT 110,000.
UNEMPLOYMENT LEVEL EXPECTED TO TICK UP. WE DID HAVE THE JOB OPENINGS,
JOBS DATA THAT CAME THROUGH YESTERDAY.
A SURPRISE IN TERMS OF THE NUMBER OF OPENINGS.
WATCH FOR THE NONFARM PAYROLLS WITHIN THE CONTEXT, DROPPING
TOMORROW. LET’S HAVE A LOOK AT A DIFFERENT STORY WHICH IS AROUND
TESLA. WE HAVE SEEN THIS BAT BREAK OUT
INTO THE OPEN ONCE AGAIN. BEFORE WE GET TO THAT,
SECOND-QUARTER SALES DROP LATER TODAY. YOU ARE EXPECTED TO SEE A
SLIGHTLY MODEST IMPROVEMENT FROM THE PREVIOUS QUARTER BUT
NONETHELESS, STILL A SLOWING DOWN IN TERMS OF YEAR ON YEAR
IN TERMS OF THOSE SALES NUMBERS AND DELIVERIES. 389,000.
WE’VE SEEN THE WEAKNESS IN EUROPE IN THE MONTH OF MAY.
EUROPEAN REGISTRATIONS OF TESLA DROPPED BY ABOUT 30%.
DOUBLE-DIGIT DROPS IN COUNTRIES LIKE FRANCE, GERMANY, EVEN HERE
IN THE U.K. AS WELL. LET’S HAVE A LOOK IN TERMS OF
HOW THE BROADER PICTURE IS SHAPING UP, GIVEN THE TENSION
WITH PRESIDENT TRUMP WHO SUGGESTED THAT DOGE SHOULD
START LOOKING AT ELON MUSK. THE CRITICISM IS IMPORTANT.
THERE’S BEEN ANALYSIS IN TERMS OF THE REGULATORY CHANGES
COMING FROM JP MORGAN, SUGGESTING THAT 40% OF TESLA’S
PROFITS COULD BE WIPED OUT DEPENDING ON HOW THE REGULATORY
LANDSCAPE SHIFTS. SQUARELY IN FOCUS ARE THOSE
CREDITS WHICH MAKE UP ABOUT 2.8 BILLION IN TERMS OF REVENUE FOR
THIS BUSINESS. OPENING TRADE IS UP NEXT.
STAY WITH US. THIS IS BLOOMBERG.

Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from London, we set the agenda for your day, catching you up with overnight markets news from the US and Asia. And we’ll tell you what matters for investors in Europe, giving you insight before trading begins.

On today’s show, stocks in Tokyo fall after Donald Trump threatens 35% tariffs on Japan in a dispute over rice exports. The US President also says there won’t be an extension to the July 9th deadline for higher tariffs.

Jerome Powell says the Fed would have cut interest rates by now were it not for the trade war, but he hasn’t ruled out a cut in July.

Plus the UK Prime Minister Keir Starmer is weakened after a battle with Labour Party rebels. His welfare reform bill passed parliament, but with all of the savings removed, leaving a potential £5 billion hole in the government finances.

Today’s guest: Maria Pereira, TISSIUM, Co-Founder & Chief Innovation Officer

Chapters:
00:00:00 – Daybreak: Europe
00:02:32 – Asian Shares Dip as Trump Revives Tariff Threat
00:03:50 – Hong Kong Steps Up Defense of FX Peg as Fixed Range Tested Again
00:05:33 – Trump Sticks With July 9 Tariff Deadline While Criticizing Japan
00:06:58 – Trump Tax Bill Hits Republican Resistance in House
00:08:38 – Powell Cautious on Fed Rate Cuts
00:11:20 – Lagarde: We Are Facing a Lot of Uncertainty
00:12:10 – Bailey: Household Debt Is Lower Than Expected
00:13:18 – US Equity Rally Stalls, Small Caps Outperform Tech
00:14:34 – EUR-USD Rises For 9 Straight Sessions
00:16:54 – Santander Agrees to Buy Sabadell’s TSB Unit for £2.7B
00:19:11 – Biggest US Banks Boost Payouts After Lighter Fed Stress Test
00:19:57 – AstraZeneca CEO Wants to Move Listing to US: Times
00:22:13 – Central Bankers on Rate Cut Pace at Sintra
00:26:03 – Starmer Guts Welfare Reform to Avoid Commons Defeat
00:27:52 – UK Prime Minister Forced Into $4B U-Turn
00:28:59 – Macron Opens Iran Talks with Putin
00:30:29 – Macron Seeks to Burnish Credentials as Global Player
00:31:27 – Gaza Ceasefire Deal to be Presented to Hamas
00:32:25 – US Halts Key Weapons Deliveries to Ukraine
00:32:46 – Trump, Musk Feud Again After Tax Bill Criticism
00:34:37 – Trump Says He ‘Will Take a Look’ At Deporting Musk
00:35:55 – Tesla Sales Report Expected to be Downbeat
00:37:24 – Maria Pereira, TISSIUM Co-Founder & Chief Innovation Officer
00:43:29 – Powell: Hope Can Look Back at 2025 as a Success
——–
More on Bloomberg Television and Markets

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