US-Iran Deal Takes Effect, UK Jobs Slowdown Eases, More

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Bloomberg News Now 7 min 6 speakers 3 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Ashley Roberts 0:00
The Big Take podcast from Bloomberg News keeps you on top of the biggest stories of the day.
Donald Trump 0:05
My fellow Americans, this is Liberation Day.
Ashley Roberts 0:08
Stories that move markets.
Chair Powell opened the door to this first interest rate cut.
Ashley Roberts 0:14
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James Woolcock 0:32
News when you want it with Bloomberg News Now. I'm James Woolcock.
Caroline Hepker 0:36
And I'm Caroline Hepker.
James Woolcock 0:38
President Trump has signed an interim deal to end the war with Iran and reopen the Strait of Hormuz. According to a US official, the so-called Memorandum of Understanding is now in effect. However, it is unclear if Iran has begun taking steps to fully reopen the waterway. Explaining his decision to agree to an interim peace deal, Trump repeated his insistence that the country would never obtain a nuclear weapon. Yet the president went on to suggest that Iran should have the right to enrich uranium for electricity and be allowed to develop ballistic missiles.
Donald Trump 1:10
If other countries have them, it's a little bit unfair for them not to have some. A ballistic missile is not the same thing as what we're talking about when we talk nuclear. But if Saudi Arabia and Qatar and they all have some, I would say in relative proportion, I think it's OK.
James Woolcock 1:28
President Trump also defended the $300 billion development program for Iran in the deal, while saying he's ready to release billions of dollars in frozen Iranian assets.
Donald Trump 1:38
We have their money. We have taken their money. It's not our money. It's their money. And we froze it at a certain point in time. I guess we're going to have to give it back. You know, if we didn't give it back, nobody would ever invest in the dollar again.
James Woolcock 1:53
The details of Trump's deal have prompted unusually strident criticism from Iran hawks who say it amounts to a victory for Tehran. Speaking to Bloomberg government, Trump's first term vice president, Mike Pence, argued that the agreement makes no mention of verifiably dismantling the country's nuclear weapons program.
Caroline Hepker 2:11
Now to the UK. The jobs market is holding up better than expected, according to the latest official data. The number of employees on payrolls rose by 2,000 in May, while unemployment slipped to 4.9% in the three months to April. The labour market data follows a weaker-than-expected inflation reading yesterday. It comes ahead of today's Bank of England policy decision. Policymakers are widely expected to leave interest rates unchanged at 3.75%.
James Woolcock 2:36
Now, that jobs data comes as the Bank of England is expected to leave interest rates unchanged today after UK inflation came in steadier than expected. Both traders and economists believe rates will be held at 3.75%, even with the recent energy shock.

What is the significance of the US-Iran deal signed by President Trump?

James Woolcock 2:51
Hugh Gimber is global market strategist at JPMorgan Asset Management.
Hugh Gimber 2:55
We see no reason for central banks here to be hiking rates, not only because oil prices are coming down, but particularly given the softness in labor markets and wages especially. We have that for the Bank of England. Both the Fed and the bank can be on hold through the course of this year, waiting to see how the Middle East pans out, but importantly, offered that time by just a very different labor market backdrop to where they were a few years ago.
James Woolcock 3:19
JP Morgan's Hugh Gimber there, as economists surveyed by Bloomberg, see the Monetary Policy Committee splitting 7-2 split in favour of a hold.
Caroline Hepker 3:27
Now, UK voters in the constituency of Makerfield go to the polls later today. The race is one of three parliamentary special elections taking place in the UK. The other two by-elections are in the Scottish seats of Aberdeen South and Arbroath and Broshy Ferry. You can find a full list of candidates for all three of those by-elections by checking the Electoral Commission's website.
James Woolcock 3:51
In sports news, England manager Thomas Tuchel has praised his team's second-half performance after they beat Croatia 4-2 in their opening Group L game of the World Cup.

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