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Chapter 1: What is the main topic discussed in this episode?
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over Ā£10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth.
News when you want it with Bloomberg News Now. I'm Caroline Hepker.
And I'm Stephen Carroll.
The US President Donald Trump has made a strident defence of his economic record during the State of the Union address. In a record one hour and 47 minute speech, the President said that inflation was, quote, plummeting and the economy was strong.
The president used the speech to draw stark contrast between his administration and that of his predecessor, as well as overstating the inflation rate he inherited. President Trump repeatedly blamed opponents and the establishment for his political troubles. The U.S.
president also attacked the Supreme Court's decision to strike down his global tariffs as half of the justices who ruled against him were sitting watching.
Just four days ago, an unfortunate ruling from the United States Supreme Court. It just came down. It came down. Very unfortunate ruling. But the good news is that almost all countries and corporations want to keep the deal that they already made. Right, Scott? Knowing that the legal power that I as president have to make a new deal could be far worse for them.
President Trump's veiled threat comes after both the EU and India paused their US trade deals following the Supreme Court's decision. Trump also suggested that his new tariffs would not require approval from Congress. That's despite the newly enacted 10% and potentially 15% global levy having a 150-day limit before congressional approval is required to keep it in place.
President Trump also used his speech to claim that Iran is working to reconstitute its nuclear programme. The accusation comes after a US military strike last June that the President had previously said resulted in the obliteration of Iran's key nuclear sites.
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Chapter 2: What economic achievements does Trump highlight in his State of the Union address?
Iran has long argued that its nuclear programme is for peaceful purposes. Trump's comments now set the stage for a high-stakes meeting in Geneva tomorrow between representatives of the US and Iranian officials aimed at securing a nuclear deal.
In earnings news, HSBC has reported better than expected earnings for 2025. The lender posted pre-tax profits of $29.9 billion for the year. That's as HSBC's market value topped $270 billion for the first time. CEO George L. Hedry says the bank will continue to evolve.
We are transforming with precision, with discipline, and we're doing it at pace and we expect to be able to conclude a number of the actions we set out to do earlier than initially planned.
That was HSBC's George L. Hedry there speaking to Bloomberg this morning. His radical restructuring has won praise from investors and driven the bank's shares up almost 90% since he took the helm. It means also that the bonus pool at Europe's largest bank is up by 10% to $3.93 billion, the highest in at least a decade.
A growing number of industry voices are warning of risks in the private credit market. Money manager Danny Moses, featured in The Big Short, says private markets push into retail products as reminiscent of the years before the global financial crisis.
Meanwhile, strategists at UBS have upped their forecast for defaults in the sector to 15%, two percentage points higher than forecast less than a month ago. The bank's head of public and private credit strategy, Matthew Mish, says technological progress could also present a challenge for the industry.
We are more concerned with AI disruption and the impact on the loan market in the near to medium term than we are on oversupply from the hyperscalers and potential for supply indigestion. That, in my view, is a medium to longer term concern or no concern at all, to be candid.
UBS's Matthew Mish speaking to Bloomberg yesterday. His remarks come as activist investor Boaz Weinstein also warned of deeper cracks in private credit funds. Fears surrounding the sector have been building in recent days after asset manager Blue Owl Capital blocked investors from making withdrawals from one of its private credit funds, raising anxiety about the loans issued by direct lenders.
Now we've got some breaking earnings news from Diageo. First half organic net sales came in below estimates, down by 2.8%. First half net sales came in at $10.46 billion, so below the estimated $10.59 billion. Diageo also has updated its full-year guidance. It now sees full-year organic net sales down 2% to 3% because of more weakness in the United States.
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Chapter 3: How does Trump respond to the Supreme Court's ruling on global tariffs?
This word cannot be broken. So we will deliver on the loan, one way or the other. Let me be very clear, we have different options and we will use them.
European Commission President's words come as Ukraine is set to run out of funds in a matter of weeks. This is US brokered peace talks with Russia have stalled. And those are your top stories. On the markets, Eurostox 50 futures up by a tenth of 1%. The FTSE 100 futures are up by four tenths of 1% this morning. After the State of the Union, the Bloomberg Dollar Spot Index down two tenths of 1%.
The euro is trading at 118.07 against the dollar. And the 10-year Treasury yield is up two basis points to 4.05%.
That's news when you want it with Bloomberg News Now. I'm Caroline Hepker.
I'm Stephen Carroll. And this is Bloomberg.
As a place to do business, the UK stands apart. Not because of a single advantage, but a uniquely powerful combination of many. As one of the world's leading financial centres, the UK puts over Ā£10 trillion to work every day, fuelling innovation across every sector. Home to four of the world's top universities, it provides exceptional talent and breakthrough research.
This sits alongside a clear 10-year industrial strategy, unlocking smarter regulation and making it faster and easier to operate. Stability with dynamism. Global connectivity with local depth. It all adds up to greater growth. Visit business.gov.uk slash growth.
Donald Trump is rewriting the Washington rulebook and reshaping the global economy. If you're trying to connect the dots behind the headlines, Bloomberg's Trumponomics podcast is here to help. I'm Stephanie Flanders, head of government and economics at Bloomberg. Every week I'll bring you a smart, focused conversation with reporters and experts from Washington, Wall Street and beyond.
Listen to new episodes every Wednesday and follow Trumponomics wherever you listen.
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