Trump: Evacuate Tehran, President Exits G-7 Early, US-UK Deal Finalized
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This is the Bloomberg Daybreak Europe podcast, available every morning on Apple, Spotify or wherever you listen. It's Tuesday the 17th of June in London. I'm Caroline Hepker. And I'm Stephen Carroll. Coming up today, the US president tells people to evacuate Tehran as he leaves the G7 summit early. The US and UK finalise their tariff cutting agreement as the White House finds other pacts more elusive. Plus billionaire insights. Citadel founder Ken Griffin on Trump holocaust.

Harvard, amateur investors and the sweet treat he turns to to keep his cool. Let's start with a roundup of our top stories.

US President Donald Trump has left the G7 leaders summit in Canada early, hours after he called for the evacuation of Iran's capital Tehran. Trump's change of plans was announced about an hour after he urged Iran's leadership to sign a deal to limit its nuclear program and Israel signaled strikes would continue. White House Press Secretary Caroline Levitt said Trump was leaving for Washington due to what's going on in the Middle East.

The latest news comes after the U.S. president said Iran wants to talk about de-escalating the conflict with Israel. I gave Iran 60 days and they said no. And the 61st year saw what happened. Day 61. So I'm in constant touch. And as I've been saying, I think a deal will be signed or something will happen, but a deal will be signed. And I think Iran is foolish not to sign one.

US President speaking there before he departed the G7 as the conflict shows no sign of letting up. Iran fired several waves of drones and missiles over the last 24 hours while Israel continued hitting Tehran, killing one more senior military official and setting the state television complex ablaze with a strike during a live broadcast.

Israeli officials have said their forces have taken control over much of Iranian airspace and severely damaged key facilities used in Iran's missile and nuclear programmes since the assault was launched on Friday. Israeli politician Ron Dermer, who is a member of...

of the Israeli cabinet and former ambassador to the United States says that Israel will continue its military operations against Iran's missile and nuclear programs, regardless of any potential U.S.-Iran negotiations. Dermot spoke to Bloomberg's Balance of Power podcast.

And the president told the prime minister, look, he wants to give Iran a last chance to see if we can reach a deal. But what were the outlines of that deal is that Iran was going to have to dismantle its military nuclear capability. That's what was put on the table. And the president has been very clear about this from the beginning, not just the beginning of his presidency. He's been saying this for years. Iran must never have a nuclear weapon.

Ron Dermott speaking there on Bloomberg's balance of power as the price of oil gained once again on the latest development. Brent crude advancing as much as 2.2% before easing back. The market remains focused on the Strait of Hormuz and any sign that Tehran may seek to disrupt crude flows through the waterway where about a fifth of the world's daily output passes.

The UK Prime Minister Keir Starmer and US President Donald Trump have agreed a deal to implement their tariff cutting agreement announced last month. British car exports will see American tariffs slashed to 10% later this month on an annual quota of 100,000 vehicles. There'll also be reciprocal access to 13,000 metric tonnes of beef for both US and British farmers, though the UK says any imports will need to meet its food safety standards. Here's the moment they signed off on the deal at the G7 summit.

This is a very good day for both of our countries, a real sign of strength. So thank you again, Donald. A really important day for both of us. Great people. Great people.

Aerospace and steel exemptions are also in the deal, although a quota on UK steel tariffs will be decided at a later date. Keir Starmer will sell the deal as a vindication of his diplomatic approach to the US President. Japan and the United States, though, failed to reach a trade agreement at that summit. Japan's Prime Minister Shigeru Ishiba told reporters the two sides were still

not on the same page. Both countries had been talking up the chances of a breakthrough at the summit, with cars being the focus for negotiators. The lack of an agreement leaves Japan closer to a possible recession as the pain of US tariffs hits the economy.

The Bank of Japan has held interest rates steady and revealed plans for a slower bond market withdrawal next year. The central bank's board kept its benchmark policy rate at 0.5% following a two-day meeting. Policymakers also shared intentions to ease the pace at which monthly bond purchases are trimmed to quarterly reductions of 200 billion yen from the current 400 billion. The moves are a sign of caution following heightened market volatility.

A damning report into group-based child sexual exploitation in England and Wales has found that the ethnicity of people involved in grooming gangs has been, quote, shied away from and not recorded in two-thirds of cases. Baroness Louise Casey delivered a rapid review for the UK government, which has accepted all her recommendations and has agreed to a national inquiry. Casey spoke to a number of media organisations about her frustrations, including to the BBC.

Some of the serious case reviews, they rarely talk about the perpetrators. They certainly don't talk about the ethnicity of the perpetrators. I felt more and more frustrated and I thought, well, sod this, frankly.

Baroness Casey's report also found that for three local police forces, there was enough evidence to show a, quote, disproportionate number of men from Asian ethnic backgrounds among suspects in these types of cases. The report concludes ignorance and a fear of being seen as racist meant that organisations tasked with protecting children turned a blind eye to abuse. Casey makes a series of recommendations, particularly to improve data collection and toughen the

penalties for perpetrators. Citadel founder Ken Griffin has praised the Trump administration for pushing back against cultural dynamics he believes have divided America. In a wide-ranging interview on Bloomberg's new show Bullish, hosted by Shonali Basak, the major Republican donor shared his views on President Trump and his alma mater, Harvard University.

Look, I think what had happened at Harvard, which was the rise of wokeism, a focus away from traditional values in education, the emergence of a cancel culture, the anti-Semitism that we witnessed on campus, was part of a larger dynamic that was gripping American culture. And I think one of the great parts of the Trump administration has been the pushback

on wokeism and on some of the cultural dynamics that I think really

polarised us as a nation. Griffin's comments come as a US federal judge says Harvard is likely to prove it would suffer irreparable harm if the government is able to proceed with plans to block international students from attending the university. Regarding the Trump administration's approach to policy, the Citadel founder said that while on many fronts the president has done a spectacular job, it's still too early to grade him on economic policy.

Well, those are our top stories for you this morning. In a moment, we'll bring you more on what's been said at the G7 on the Middle East and on trade and what's happening indeed in the Iran-Israel conflict too. I want to bring you a little bit more of that conversation between Shonali Basak and Ken Griffin and a moment that perhaps some of us can identify with. Let's listen in. What does Ken Griffin look like under pressure?

Right on your toughest day. How do you let off steam and how do you navigate a tough time? A scoop of vanilla chip ice cream from Haagen-Dazs with hot fudge. Seriously? Oh, yes. Yes. No, there's a bit of a joke that you can tell how stressful it's been by how much my waistline's grown over the last few months. And one of my colleagues, his waistline goes in exactly the opposite direction. So there you go. Love the Haagen-Dazs vanilla chip with hot fudge on that stressful day.

So Ken Griffin there speaking to Shinali Basik about how he copes with stressful situations. Ken Griffin, I should remind you, according to Bloomberg's billionaires list, has a net worth of over $48 billion. And yet he still goes for the ice cream. Yeah, I thought it was really nice. It was a lovely moment that you've highlighted, Stephen, because it does. It brings to the fore, you know, how people deal with stress. They deal with stress in very different ways. Yeah, definitely.

Well, I'm glad to know there's not some magic formula that I wasn't aware of, that if you had essentially infinite money that you couldn't, there wouldn't be something else that would be much more effective. So at least it's comforting to know that there isn't an option out there that we didn't know about beforehand. But yeah, it was a great question, though, how to deal with stress on very, very busy days. You can, of course, see the extended interview. It's on our new Bullish programme at Shonali Basak.

Ken Griffin. It's on Bloomberg.com and you can also tune in to new bullish episodes on Bloomberg TV on Tuesdays at 6pm.

amid a touch of dollar weakness as well. On European stock futures, they're pointing lower, down 0.6% of 1% for Eurostoxx, 50% after the gains that we saw in those markets yesterday. And futures on Wall Street are in the red as well, down 0.4% for S&P E-minis.

this morning as Nasdaq futures are four tenths of one percent lower as well. So those are the markets. Now let's bring you up to date on the latest developments in the Middle East after President Trump warned that people should evacuate the Iranian capital. Our Middle East managing editor, Anna Ant, joins us now for more. Anna, good morning.

In terms of the latest from Israel and Iran this morning, what do we know about the conflict now? The conflict is now in its fifth day and both parties continue to exchange fire with the Iranian side relying on long-range missile barrages like it has.

since the beginning of the conflict last Friday, whereas Israel seems to have focused at least some of its firepower in the Iranian capital, Tehran. In the meantime, we have also seen that U.S. President Donald Trump weighed in on the conflict more heavily than he has over the weekend. He was in Canadian Rockies

at the G7 meeting where he first said that he would have to leave and he did hastily so saying that he would have to attend to the Middle East matter, saying that he would like to see a peace, but he still kept a vague stance on what is next for the US in terms of this latest war in our region. We paid a lot of attention to this comment where President

President Trump in his social media post called for people to leave Tehran. Was that thought to be a warning about something in particular from the U.S. president? It was thought to be so, but obviously we don't actually know whether or not he was in particular aware of any upcoming attack on Tehran. Having said that, that

tweet alone or those social media posts alone had a huge impact. We have seen videos of traffic jams in Tehran as people tried to leave. Now, to be fair, though, there were similar warnings from various Israeli officials throughout the day before Trump's social media posts

So it is possible that both those and Trump's comments themselves may have affected people's thoughts. And some of them obviously felt obliged to leave the Capitol as soon as possible.

The G7 statement talks about Iran is the principal source of regional instability and terror, while also reiterating support for the security of Israel. Are there any hopes for talks or any hopes for de-escalation in this fight? This is really the most tricky part. Since the conflict began last week, we have seen Trump immediately dangle two departments

different outcomes for the administration in Iran. On the one hand, he has been pushing them to reach a quick nuclear deal to curb Iran's nuclear activities on the one hand. But on the other, he kept this vague stance on whether or not he will support Israel in this offensive against Iran.

and what exactly might happen to Iran itself. He made comments suggesting really crippling Israeli military action targeting nuclear and military sites in Tehran. So he's been trying to show to Iran that, A,

on the one hand, the U.S. is open to a diplomatic solution and B, on the other hand, if that doesn't work out, something terrible will happen in Iran. And his most recent comments while he was still in Canada on Monday suggests

that there are efforts on the way to bring Iranian and American officials together, possibly the Iranian foreign minister, Arakci, and U.S. special envoy to the region, Witkoff, later this week, according to a report by Axios earlier this morning. But all of this is highly uncertain, and it looks, though, that Iran

Mr. Trump is keeping both avenues open. On the one hand, yes, he is pushing for a diplomatic solution. On the other hand, the U.S. is moving an aircraft carrier group to the region, which is never a good sign. And basically, yeah, the U.S. is keeping it vague whether or not it will intervene, it might intervene in this war on the side of the Israelis. OK, Anurad, our Middle East managing editor. How can you grow your business from idea to industry leader?

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Starting price for 25 megabits per second LTE internet plan with smartphone plan savings, plus taxes, fees and economic adjustment charge. Terms apply. For J.D. Power 2024 award information, visit jdpower.com slash awards. Well, the statement from the G7 was agreed after President Trump announced that he'd be leaving the meeting in Canada early to return to Washington. That means that some leaders hoping for a chance to talk about trade

were left disappointed. But President Trump announced progress on implementing the tariff deal with the UK. Our correspondent Oliver Crook has been monitoring developments for us and he joins us now. Good morning, Oliver. So the UK was the first country to get a deal with the Trump White House to lower tariffs last month. What did Trump and

Keir Starmer agreed to in Canada. Yeah, good morning, Caroline. This is broadly sort of an implementation of the framework that we had announced a little while ago between the UK and the United States. And as you say, the first of what we've been promised of many, many, many trade deals that are supposed to be coming over the next couple of weeks.

But one that has taken a little bit of time to actually get over the line. They showed this sort of folder and they showed kind of this agreement that they put together. And it basically includes measures on many of the things we've talked about throughout this sort of tariff war about cars, agricultural products.

And for one of the things, it's interesting because the UK and its auto exports, for example, so that tariff came down from about 30%, 27.5%, down to 10%. They're also going to be adding quotas of about 100,000 vehicles to export into the United States. There were also some things struck on aluminum and steel. It's a little bit less clear what was struck there because it's a little bit more complicated. They want the U.S. to implement...

some guarantees in terms of securing the supply chain because of course the U.S. government, the U.K. government controls British Steel but its legal owner is Chinese. We should say that this is at a time when the Trump administration itself just approved the acquisition of U.S. Steel by a Japanese group, albeit with some sort of caveats and important things there. But I think that really the big picture here when you take a step back, remember the U.K. is arguably one of the countries that poses the sort of smallest trade threat to the United States.

It was one of the only nations that had a deficit with the United States. So it's maybe not that impressive that this is the deal that got signed while all the others are still sort of waiting, when by sort of Trump standards, you know, the United States is already taking advantage of the United Kingdom. If you basically, you know, accept the Trump logic, the trade surplus means you're taking advantage of the other. This is the lowest hanging fruit, and it's taken a little while to get over the line.

Now, Oliver, we have been discussing Donald Trump's early departure from the G7 in a post on social media now saying that he has, I suppose...

Added to some of the commentary that's come both from the White House but other world leaders as well, that perhaps he was returning to Washington to make progress on efforts in the Middle East. And his post on social media says that that's wrong. He says that he's not going back to work on a ceasefire in Washington. He says it's much bigger than that. And he's taken a bit of a jab at Emmanuel Macron, the French president, for suggesting that the departure was to do with working on a ceasefire in Washington.

in the Middle East. So that's perhaps some more information for those leaders who were left disappointed by the fact that they didn't get a chance to meet Donald Trump at this event because many had been hoping to talk to him about trade. Yeah, I mean, I think that if we've learned anything about Donald Trump, it's probably better not to speak for him. Otherwise, you will get corrected and maybe, you know, a lot worse.

But as you say, these G7 formats theoretically are a sort of forum for collective action by like-minded Western developed nations in order to try to bring economic, military, social, political stability across the globe. And this is not a moment in which, A, there is any sort of collective action that is being led by the United States because this is a system in which

that the Trump administration fundamentally does not believe in. And it is a time when you went into the meeting with a highly tense situation in Iran and Israel, and you leave with an even more explosive one. So all of those, I would say, are kind of failures to the architecture of the G7. What it did provide, theoretically, was an opportunity for a lot of bilateral meetings with the Trump administration, with Donald Trump himself.

We understand he met with Emmanuel Macron, Keir Starmer. We saw Ursula von der Leyen, Giorgio Maloney. He had been scheduled to meet with Friedrich Merz. But at this point, you know, there was not a great deal of progress, it seems, made on any of the other sort of trade fronts, certainly with the European Union.

I think that it has sort of been accepted by the Trump administration and maybe the Europeans that they're kind of last in line in terms of getting at a negotiation. You know, we heard from Howard Letnick last week saying that he's optimistic that a deal could get there, but basically that the Europeans will be the very last.

the very last, because of course this is an enormous trading relationship worth more than a trillion dollars. So for the Europeans and the United States, it's both fundamentally important that they get it right. That being said, we are counting down to that deadline for the European Union to strike some kind of deal July the 9th, at which point basically the United States would probably

put up 50% tariffs on the EU. The EU has said that they're committed to hitting that target. But from our reporting, we may not get a kind of final deal there. We may see the same structure that we saw from the UK, a broad framework that basically buys for more time because this is going to be a complex negotiation.

This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Street and beyond. Look for us on your podcast feed every morning on Apple, Spotify and anywhere else you get your podcasts. You can also listen live each morning on London DAB Radio, the Bloomberg Business App and Bloomberg.com. Our flagship New York station is also available on your Amazon Alexa devices.

Just say Alexa, play Bloomberg 11.30. I'm Caroline Hipker. And I'm Stephen Carroll. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak Europe.

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