Crypto News: 5 things to start your day: Europe

Good morning. UK growth data is coming up, China falls out of favor with European firms and UBS reportedly weighs bonuses for wealth client referrals. Here's what people are talking about.

So just how healthy is Britain's economy seeing as the Bank of England is getting ready to cut interest rates? Gross domestic product data may show the UK exited a shallow recession in the first quarter. Governor Andrew Bailey said Thursday a quarter point reduction in the benchmark lending rate to 5% "is neither ruled out nor a fait accompli," adding reductions are likely "over the coming quarters." Bloomberg Economics says the BOE is expected to commence easing in June with a cut at each meeting through 2024.

Geopolitical tensions around China are brewing, again. The Biden administration is poised to impose tariffs on China as soon as next week, people familiar with the matter said. The new tariffs will focus on industries including electric vehicles, batteries and solar cells, with existing levies largely being maintained. Over in Europe, China is already losing its luster as a top investment destination, with a survey showing EU firms' appetite sinking to a record low. While in the UK, Rishi Sunak's government faces pressure from banks including HSBC and Standard Chartered, as well as other major companies, to tone down proposed restrictions on doing business with China.

UBS is considering introducing a reward system for investment bankers who refer clients to the firm's wealth management business, say people with knowledge of the matter. Some bankers would likely be in line for payouts in Asia and Europe when they successfully attract new money to the lender's private banking unit. Elsewhere in the world of finance, Goldman Sachs led major investment banks posting higher profits in Japan as bond trading boomed. And Citadel Securities is running at "record pace" as it benefits from its expansion into new products and geographies, said Chief Executive Officer Peng Zhao.

At this week's premier business conference in Beverly Hills, a passionate debate over diversity was taking place behind closed doors. In a small side room, roughly 40 people, including some of Wall Street's most senior executives of color, confronted hedge fund manager Bill Ackman for his attacks on diversity, equity and inclusion, or DEI, initiatives, according to five attendees. For about an hour, Ackman was criticized for his public denunciation of DEI and for expressing views that participants said were detrimental to the progress of women and people of color in America.

Apple issued a rare apology for an advertisement touting its latest iPad Pro that upset many creatives and other customers. The company also said it won't air the ad on television as planned. In the meantime, Apple will deliver some of its upcoming artificial intelligence features this year via data centers equipped with its own in-house processors. The move is part of its push into generative AI — the technology behind ChatGPT and other popular tools, as the company is playing catch-up with Big Tech rivals in the area.

Apart from the GDP data, the UK will also release industrial and manufacturing production readings along with trade balance. Also on today's event docket are the European Central Bank minutes and the Polish central bank governor's news conference. Over in the US, the Fed's Bowman, Logan and Kashkari speak later in the day.

This is what's caught our eye over the past 24 hours.

Netanyahu vows Israel will fight alone even without US help
Companies can't issue debt fast enough with 88 deals in 72 hours
Goldman sees delayed Trump-Biden election call as a trading risk
Pentagon teams up with SpaceX to block Russia from using Starlink
Stormy Daniels grilled at Trump trial
The dangerous and lucrative business of space clean-up
American-style tipping is now testing pub culture in Britain

With Thursday's Bank of England decision, Governor Andrew Bailey has markets right where he wants them.

As the bank continued its dovish journey, he sent a clear signal that rate cuts are coming -- perhaps more quickly than traders are expecting -- and that a change as soon as the bank's meeting on June 20 "is neither ruled out nor a fait accompli."

Traders moved to price in an almost exactly 50% chance of a move next month -- a rare case of the markets and the BOE being bang in line with each other. Of course, by the time June rolls around, it's very unlikely that pricing will hold, but that's probably OK with Bailey too.

We've got two inflation prints between now and then and how they turn out will determine whether a June cut is seen as a shoo-in (if we get a benign outcome) or a distant hope (if we have some nasty surprises).

Either way, the newfound synchronicity between the BOE and traders will be welcomed by officials. The BOE has a pretty chequered history with markets, so it should definitely enjoy it while it lasts.

Dave Goodman is an editor for Bloomberg Markets Today. Follow him on X at @_Davidgoodman