Trump Vows 25% Tariff on Countries Doing Business With Iran | Daybreak Europe 1/13/2026

Watch on YouTube ↗ | January 13, 2026 at 08:41 | 46:37 | Bloomberg Markets

Speakers

Esther — Senior Editor, Bloomberg

Paul Dobson — Executive Editor, Bloomberg

Alice French — Japan Equities Reporter, Bloomberg

Charlie Wells — Bloomberg Reporter

Ali Vaez — Iran Project Director and Senior Adviser, International Crisis Group

Marta Lorimer — Politics Lecturer, Cardiff University

Lizzy — Anchor, Bloomberg

Summary

Bloomberg Daybreak Europe covers market reaction to the Trump administration's probe into the Federal Reserve, with Republican senators warning about Fed independence. Asian equities hit record highs after a report that Japan's Prime Minister plans a snap election, weakening the yen and pressuring Japanese government bonds. The show also discusses Trump's threatened 25% tariff on countries doing business with Iran, U.S. bank earnings and CPI, French politics, and corporate news.

Trump administration's Fed probe draws Republican backlash over Fed independence.
Asian stocks hit records; Japan snap election report boosts equities and weakens yen.
Japanese government bonds come under pressure on fiscal expansion concerns.
Trump threatens 25% tariffs on countries doing business with Iran.
G7 discusses critical mineral supply chains; U.S.-Taiwan trade deal is close.
U.S. bank earnings preview focuses on deal flow, trading revenue, and credit-card rate cap risk.
French far-right leader Marine Le Pen's appeal and succession politics discussed.
U.S. CPI and bank earnings are key risk events.

Ideas

Esther Senior Editor, Bloomberg 4:47

Fed pressure raises U.S. borrowing costs.

The DOJ probe into Powell and broader political pressure on the Fed risk undermining investor confidence in the integrity of U.S. monetary policy. If investors demand a higher return to hold U.S. assets, U.S. borrowing costs and 10-year Treasury yields should rise, working against the administration's goal of lower rates and mortgage costs. The backlash may also slow any replacement of Powell, but the market-relevant point is higher U.S. term premium and borrowing costs.

Paul Dobson Executive Editor, Bloomberg 7:06

Prefer non-U.S. equities over U.S.

Even as the S&P 500 eked out a record high, the dollar remained weaker and Asian/rest-of-world equities outperformed. Investors are looking for opportunities outside the U.S.; even without a full Sell America trade, putting all eggs in the U.S. basket looks less attractive than allocating to non-U.S. equities.

Alice French Japan Equities Reporter, Bloomberg 12:36

Japan fiscal package boosts AI, defense, quantum.

Japan's ¥21 trillion fiscal package is boosting strategic sectors from AI to defense to quantum computing, and a snap election could extend more fiscal expansion, giving continued tailwinds to these government-priority areas.

Alice French Japan Equities Reporter, Bloomberg 13:22

Fiscal worries pressure Japanese government bonds.

The snap election and Takaichi's expansionary fiscal stance are stoking worries about Japan's expanding debt burden. JGBs have come under pressure and 10-year yields are rising or steepening; if the election upsets political stability, bonds could face further selling.

Alice French Japan Equities Reporter, Bloomberg 13:37

Yen weakness extends on fiscal expansion.

The yen has weakened to its lowest since summer 2024 and is edging toward 160 per dollar as the snap-election and fiscal-expansion narrative continues. A weak yen helps exporters but excessive one-way weakness is a concern for the finance ministry and could weigh on the economy.

Alice French Japan Equities Reporter, Bloomberg 14:30

Japan equities benefit from fiscal stimulus.

Reports that PM Takaichi will call a snap election, with high approval ratings, would solidify her mandate and allow more expansionary fiscal policy for longer. Japan's ¥21 trillion fiscal package and yen weakness are tailwinds for exporters and sectors benefiting from government spending, helping push Japanese stocks to record highs.

Charlie Wells Bloomberg Reporter 41:36

Credit card rate cap pressures issuers.

Trump is talking about a 10% cap on credit card interest rates, which puts pressure on banks that issue credit cards. This policy risk makes U.S. credit-card-exposed banks less attractive.

Charlie Wells Bloomberg Reporter 42:06

Bank earnings outlook supports KBW banks.

The KBW Bank Index has been outperforming the broader market ahead of earnings. Strong deal flow, with 2025 the best year for deals since 2021, and strong trading revenue should translate into stronger reports, though expense surprises, AI commentary, M&A softness, and policy macro risks are risks.

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This Bloomberg Markets video, published January 13, 2026, features Esther, Paul Dobson, Alice French, Charlie Wells discussing TLT, Non-U.S. equities, Japanese AI-related equities, Japanese Defense Sector, Japanese quantum computing equities, Japanese government bonds, FXY, EWJ, U.S. credit card issuers, BKX. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Esther, Paul Dobson, Alice French, Charlie Wells · Tickers: TLT, Non-U.S. equities, Japanese AI-related equities, Japanese Defense Sector, Japanese quantum computing equities, Japanese government bonds, FXY, EWJ, U.S. credit card issuers, BKX