EU-US Tariff Deal, Starmer & Trump Trade Talks, Cult Bond Trade | Bloomberg Daybreak Europe

EU-US Tariff Deal Reached

• 🇪🇺 The United States and the European Union have agreed on a deal to set 15% tariffs on most EU imports into the US, averting a trade war.
• 🤝 While announced as a "big deal" by European Commission President Ursula von der Leyen, many key details remain to be ironed out, with no official text yet released.
• 🚗 Discrepancies emerged regarding specific sectors, with differing statements on whether pharmaceuticals were included in the 15% rate and details on steel and aluminum duties and energy product commitments were scant.
• 🇫🇷 France's Europe Minister described the agreement as unbalanced, despite providing temporary stability.

UK-US Trade and Diplomacy

• 🇬🇧 UK Prime Minister Keir Starmer is meeting US President Donald Trump in Turnberry, Scotland, to finalize their trade deal and discuss a ceasefire in Gaza.
• 🛡️ A key point of discussion is the potential removal of US tariffs on a quota of UK steel imports and securing a carve-out from potential pharmaceutical tariffs.

Gaza Aid and Corporate Deals

• 🕊️ Israel has increased aid distribution to Gaza amidst international outcry over hunger, with the UN warning of crisis levels of food insecurity.
• 💡 Samsung Electronics will produce AI semiconductors for Tesla in a new $16.5 billion pact, a significant win for Samsung's foundry division.

UK Bond Market and Rome Aquarium

• 📉 A long-dated UK bond maturing in 2061, once popular for its potential returns and tax benefits, is now a "cult trade" for yield-chasing investors, but has plunged in value.
• 🏗️ The Aquarium of Rome, under construction for over two decades and costing over 100 million euros, faces financial distress and requires at least another 20 million euros to open, symbolizing the difficulty of delivering large building projects.

Sports and Market Wrap

• ⚽ The England women's football team has retained their European Cup title, beating Spain in a penalty shootout, marking a historic victory on foreign soil.
• 📈 European stock futures are pointing higher following the EU-US deal news, with modest movements in currency and Treasury markets.