Trump's 50% Tariffs, Elon Musk on Tax Bill, UK Defence Spending | Bloomberg Daybreak

US Tariffs on Steel and Aluminum

• 🇺🇸 President Donald Trump has doubled steel and aluminum tariffs to 50%, citing national security as the reason.
• 🇬🇧 The UK is the sole country exempted from this tariff increase due to a framework trade deal with the US.
• 📈 Aluminum prices surged on the Comex exchange in anticipation of the tariff hike.
• 🗣️ White House press secretary stated the president is protecting domestic jobs in the steel and aluminum industries.

US-China Relations and Elon Musk's Criticism

• 🇨🇳 China's Foreign Minister Wang Yi urged the US to improve relations during a meeting with Ambassador David Perdue.
• 🇺🇸 Ambassador Perdue highlighted US priorities including trade and illegal immigration.
• 💡 Elon Musk publicly criticized President Trump's signature tax bill, calling it a "budget busting abomination."
• 🏛️ House Speaker Mike Johnson pushed back against Musk's criticism, defending the tax bill.
• 💰 The tax bill is projected to reduce federal revenue by $4 trillion and increase the deficit by $2.5 trillion over a decade.

Volkswagen Restructuring and UK Defence Industry

• 🚗 Volkswagen announced that approximately 20,000 employees will voluntarily leave by the end of the decade as part of a restructuring of German operations.
• 🇬🇧 Sources indicate the UK's Ministry of Defence is requesting an increase in military spending to 3.5% of GDP.
• 🛡️ Defense contractors emphasize that rhetoric on defense spending must be matched with action to rebuild the UK's military industrial base.
• 🏭 BAE Systems is expanding its 155mm artillery shell capacity significantly to meet anticipated global demand, including for Ukraine.
• ⚠️ Admiral Lord West described the British military's state as having a "bare cupboard" in terms of weapons and ammunition.
• 💰 The UK government is considering new infrastructure projects funded by an additional £130 billion, but some government departments may face cuts of up to 11%.

Market Updates and Taylor Swift's Catalog Deal

• 📈 Asian stocks rose for the first time in four days, with a decent US labor market report influencing markets.
• 🇪🇺 Euro area inflation eased more than expected, while European stocks edged higher.
• 🎧 Taylor Swift finalized a deal to buy back her music catalog for over $300 million, a move highlighted as a business masterclass.
• 💰 The deal's success is partly attributed to the value of Swift's fan base and her Eras Tour.