Bloomberg Daybreak: Europe Edition

In this special episode of the Bloomberg Daybreak Europe podcast, we break down the fresh selloff sweeping global bond markets. UK 30-year gilt yields have hit 6% for the first time since 1998, while the US 10-year Treasury yield has climbed to its highest since 2002. Bloomberg Managing Editor Rachel Evans, Bloomberg TV host Guy Johnson and Bloomberg Director of Global Economics Jamie Rushjoin Caroline Hepker and Nathan Hager to explain what's driving the moves and what they mean for markets and the global economy.

10 Reasons Investors Are Driving Government Bond Yields Higher
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Your morning briefing. All the news you need to start your day.

On today's podcast:

(1) A pilot of a jet carrying more than 170 passengers to Tel Aviv stabbed his colleague and tried to crash the plane in what Israeli Prime Minister Benjamin Netanyahu branded a serious security incident.

(2) The UK’s domestic security service MI5 accused a Chinese academic institute of spying on Britain’s artificial intelligence research.

(3) France’s government is set to unveil plans to narrow the budget deficit sharply, kicking off a debate that risks toppling the prime minister and stoking investor concern over the country’s debts.

(4) Italian Prime Minister Giorgia Meloni said she plans to ask the European Union for greater fiscal flexibility after the region’s top economies showed a surge in inflation caused by high energy prices.

(5) Britain’s Labour government is falling behind on its ambition to borrow more money from regular savers, potentially raising the amount it needs to raise from gilt markets.

(6) Swiss glaciers lost over 5% of their ice volume following a hot summer and at least two disappeared altogether, an acceleration of melting that threatens the tourism lifeblood of Alpine communities.

Podcast Conversation: Elite $30,000 Sheepdogs Are Putting Tiny UK Town on Global Map
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Your morning briefing. All the news you need to start your day.

On today's podcast:

(1) Andy Burnham set out a radical vision to change the country in a keynote speech to the Labour Party's annual conference, taking on controversial issues such as reversing Brexit and changing Britain's electoral system.

(2) The latest official figures showed there were 45,000 more 16-24 year-olds leaving than arriving in the UK in 2025, with many young people looking abroad for opportunities due to a challenging labor market.

(3) Crude oil flows from the Middle East are returning toward pre-war levels despite continued risks to shipping, according to separate estimates from JPMorgan and Goldman Sachs

(4) President Donald Trump endorsed using outside auditors to assess the safety of artificial intelligence systems through an accord with Silicon Valley leaders that seeks to sidestep new government rules in addressing a groundswell of concern over AI risks.

(5) Jordan Bardella, the head of the far-right National Rally, said he’s asked his lawyer to lodge a lawsuit after a French online news site published an article alleging he made a series of antisemitic comments over a decade ago.

(6) The Premier League said Manchester City artificially boosted its financial results by more than £900 million ($1.2 billion), with the club guilty of all charges related to serious breaches of financial rules.

Podcast Conversation: The AI Writing Controversy Doesn’t Extend to Many Workplaces
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Your morning briefing. All the news you need to start your day.

On today's podcast:

(1) The selloff in the US bond market deepened on Monday after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, threatening to prolong the war’s energy shock.

John Authers: What’s Going to Break in the Bondpocalypse? A negative surprise in upcoming US data might be the only thing to arrest bonds’ slide.

(2) The UK government is privately lobbying the Trump administration for an exemption from any potential US diesel export ban.

(3) Andy Burnham will set out his pitch for honest political debate as the antidote to populism as he reveals his plans for taking on thorny issues, from Britain’s expensive social care system to its creaking water infrastructure.

(4) Rising bond yields will curb economic expansion and limit the transfer of elevated energy costs to inflation, European Central Bank President Christine Lagarde said.

(5) The global AI industry needs to earn $6 trillion in annual revenue by 2031 to justify the capital being deployed to build data centers around the world, Bain & Co. said.

(6) Europe's gas storage sites are at their lowest ever level for this time of year due to the loss of Russian pipeline gas and fears about a tight LNG market.

Podcast Conversation: At an Angry Time, the Business of Rage Retreats Is Booming
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Your morning briefing. All the news you need to start your day.

On today's podcast:

(1) UK police were investigating a potential terrorism incident after five men were arrested near an air base used in US strikes on Iran, with President Donald Trump saying the suspects were “looking to do big damage” to the facility.

(2) As Britain’s governing Labour Party gathers in Liverpool for its annual conference, one notable figure is trying to maintain a low profile: Chancellor of the Exchequer John Healey.

(3) Iran stuck to its seven-day proposal for reopening the crucial Strait of Hormuz, saying it won’t soften its conditions, while President Donald Trump sent mixed signals about his willingness to reach a deal.

(4) The bond market is on the brink of signaling that a series of Federal Reserve interest-rate hikes will start shifting the narrative toward the risk that the US economy stalls out.

(5) One in six companies in western Europe is under financial strain as rising leverage leaves businesses more vulnerable to shocks, according to Boston Consulting Group.

(6) If artificial intelligence becomes too powerful for its creators to control, is it possible to just flip a switch and turn it off? That question has taken on new urgency after a burst of stark warnings in recent weeks from inside the AI industry about the existential threat posed by advanced models.

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