Bloomberg Daybreak Europe: Putin-Zelensky Meeting Unlikely, Fed Rate Cut Prospects, Reform UK's Business Appeal

Ukraine Conflict and International Relations

• ❌ German Chancellor Friedrich Merz stated that a meeting between Ukrainian President Zelensky and Russia's Vladimir Putin is highly unlikely, despite previous suggestions.
• 💥 Devastating Russian air strikes on Kyiv killed over 20 people, damaging EU and British Council buildings, which the EU Commission President described as an attempt to terrorize Ukraine.
• 🇺🇸 The US has approved Ukraine's request to purchase thousands of long-range missiles, marking the first formal use of a new mechanism for US military support.
• 🇪🇺 European powers have referred Iran to the UN over its nuclear program, triggering a snapback process for international sanctions after non-compliance.

US Federal Reserve and Economic Outlook

• 📉 Federal Reserve Governor Christopher Waller expressed support for a quarter-percentage point rate cut in September, with potential for further reductions.
• 📈 US stocks reached a new all-time high, driven by solid economic readings, though traders awaited inflation data for clues on future Federal Reserve rate cuts.
• 🏛️ Governor Waller's comments come amidst controversy over President Trump's attempt to remove Fed Governor Lisa Cook, raising concerns about Fed independence.
• 📊 US GDP growth was revised upwards to a 3.3% pace in the second quarter, underscoring the resilience of consumer spending.

UK Politics and Business Engagement

• 📈 Lobbyists are increasingly attending Reform UK's annual conference, signaling that corporate Britain is taking Nigel Farage's party more seriously as an electoral force.
• 📊 Polling indicates a significant rise in interest from public affairs executives towards Reform UK, with 20% planning to attend their conference, a substantial increase from previous years.
• 🏦 A think tank report suggests the UK Chancellor should consider a windfall tax on commercial lenders to raise billions in revenue.
• 💼 Businesses are showing growing curiosity about Reform UK, with significant company spending on their conference, suggesting a risk in not engaging with the party.