Bloomberg Daybreak: Europe Edition

UK markets are facing further turmoil as gilt yields have hit multi-decade highs, the pound has been pummeled and equities have slumped. Concerns over stubborn inflation, a ballooning government debt pile and tepid growth have hit a nerve in recent days, with traders heaping pressure on the embattled Labour government. In a special bonus episode of the Bloomberg Daybreak Europe podcast, Bloomberg Opinion columnist Daniel Moss shares his assessment of the situation with Caroline Hepker and Stephen Carroll. See omnystudio.com/listener for privacy information.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast:(1) Plunging UK markets are serving a fresh warning about the British economy and heaping pressure on Keir Starmer’s embattled Labour government.(2) Britain’s latest bond turmoil has drawn comparisons with the Liz Truss mini-budget debacle of 2022 but a parallel with the debt crisis of the 1970s might be more apt. (3) The 92 global banks in Bloomberg Intelligence's coverage may see a 12-17% ($120-$180 billion) lift to 2027 pretax profit as artificial intelligence powers productivity gains, based on our survey of chief information and technology officers. Job cuts could reach 200,000 in 3-5 years, applying the 3% average expected cut cited in the anonymous survey to the group.(4) The selloffs that keep flaring in the world’s bond markets are pushing yields toward key thresholds amid escalating worries about elevated inflation, tempestuous politics and swelling government debts.(5) Los Angeles plunged into its worst natural disaster in decades as wildfires driven by hurricane-strength wind gusts tore through prosperous neighborhoods, killed at least five people and forced more than 100,000 residents to flee.See omnystudio.com/listener for privacy information.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast: (1) In the space of an hour, President-elect Donald Trump called for absorbing Canada, declined to rule out using military force to seize the Panama Canal and Greenland, demanded NATO allies spend 5% of GDP on defense and vowed “all hell would break loose” in the Middle East if Hamas doesn’t release Israeli hostages before he takes office. (2) President-elect Donald Trump said NATO nations should spend the equivalent of 5% of their economic output on defense, escalating his demands on European allies to more than double the current target. (3) The sister of Sam Altman accused the OpenAI chief executive officer of sexually abusing her for almost a decade, in a lawsuit filed in federal court. (4) Borrowers are flooding global debt markets at an unprecedented pace as they take advantage of demand from credit-hungry managers flush with cash. (5) A British politician said he had “almost zero confidence” in the integrity of Shein’s supply chain following a heated exchange with a representative of the fast-fashion retailer in London. (6) JPMorgan Chase is preparing to tell all its employees to return to the office five days a week, ending a hybrid-work option for thousands of staff and returning to the attendance policy that was in place before the pandemic.See omnystudio.com/listener for privacy information.

Your morning briefing, the business news you need in just 15 minutes.On today's podcast: (1) Mark Carney, the former governor of the Bank of Canada and Bank of England, said he’s considering entering the race to replace Justin Trudeau as Canada’s prime minister. (2) Senior politicians in three of Britain’s biggest parties have privately urged Donald Trump’s allies to reconsider his relationship with Elon Musk, after the billionaire Tesla boss made a series of increasingly inflammatory remarks about UK politics, including endorsing a figure on the far right. (3) The UK’s long-term borrowing costs have come close to their highest level in more than a quarter of a century, ramping up pressure on Chancellor of the Exchequer Rachel Reeves to keep the market on side ahead of a raft of bond sales this week. (4) The US has blacklisted Tencent and Contemporary Amperex Technology Ltd. for alleged links to the Chinese military, targeting the world’s biggest gaming publisher and top electric-vehicle battery maker in a surprise move weeks before Donald Trump takes office. (5) Bridgewater Associates dismissed 7% of its workforce Monday as the world’s biggest hedge fund seeks to remain lean and maintain the flexibility to hire top talent, according to a person familiar with the matter. (6) Germany's plan to become a semiconductor superpower is struggling after Intel halted a €30 billion investment in Magdeburg.See omnystudio.com/listener for privacy information.