♪ >> good morning. this is bloomberg "daybreak." wall street has its worst day since the august meltdown as growth worries fear a flying from risk. u.s. and european futures also firmly in the red. n have you had yeah's record

route worries over a.i. and a u.s. anticipate trust probe $279 million, value is the biggest one day loss in american stark market mystery. plus, ukraine's president reinforce as call for air defense systems following one of the deadliest strikes since the beginning of russia's war. we bring you the details. ♪ >> so a flash back into the beginning of august with a selloff pronounced in the u.s. expectations of that will continue into the session today with european futures pointing by a full one percentage point. it was nvidia that felt the full force of the route yesterday in the u.s. session. nvidia closing by almost 10%. some calls from analysts but the

d.o.j. probe into the company. we will bring you the details in the show. we continue to monitor what's happening in commodities. s. & p. futures having dropped to 2% yesterday. the nasdaq the worst start to a september since 2002. nasdaq futures pointing low by 145 points. let's flip the board. there was a move into treasuries, yields drop. that has stabilized somewhat in the session today. 385. the japanese yen seeing strength again in systems of some of the outside currently at 145. officials suggesting that it will move rates higher when the conditions are met. euro dollar at $110. we're hearing from officials. september is very much in play from his point of view in terms of rates from the e.c.b.

brent # 3.36% down. back below $70. let's go over to asia. we'll have a check of the marks in terms of the semiconductors and japan. avril? avril ton chip stocks bearing the bankrupt of the second. it is widespread. the info tech sector is the one declining by the most. we are seeing echos of august in terms of size and scope of the selloff. we haven't seen a date this bad since the crash last month. and this is of course, against backdrop of those concerns triggered by the nvidia selling that this rally has gone too far, too fast some of you have on -- declining 5%.

a couple of other things i wanted to highlight even as we see these declines because remember in the depths of the august selloff part of the concern is the shot in the currency. we see it from 1.47 to 1.457. it makes you wonder and it can't be helping the any key. a bit of a double whammy. the other thing i wanted to highlight how equitys in the depths of the august selloff seeing there's so much selling to go off. also for some of these chinese equities they have been so disconnected. keep that in mind as we see the is off flip the boor and give you a sense of the extent of the selling, that's chip names the ones baring the brunt. these are the direct suppliers,

asia chip names as seeing the biggest media in august and to the lowest since the crash. let's flip the board again because i wanted to offer you this perspective as we see the decline in these chip names, something worth highlighting is the forward p.e. ratios for these stocks as they've actually trended to what's the 10-year average. so it has pointed out that hey, some of these asia chip names are not that expensive. the other idea surrounding this as we see them fall is that they have fallen much more compared to their u.s. p.s.o. this could point so signs of them potentially bottom out. tom: let's get more analysis right now because stocks suffering. what a selloff driven by a republican by nvidia. it lost $280 billion.

the biggest drop in history. on the eco front a u.s. manufacturing gauge contracted if a fifth straight month. let's unpack all of this. mark cranfield standing by. what was the key catalyst? how sensitive are these markets now to the jobs data as we look ahead to jobs openings toll today and the nonform payrolls on friday? >> yeah, all of the above. and coming back from the labor day long weekend which is traditionally a time when u.s. investors look ahead for the rest of the year. how do we feel about markets going from here? and they will be concerned particular le when they see the data you were just talking about. the federal reserve is already behind the curve. they were already not doing enough to support a rebound in the u.s. economy. and at the moment, the data is only pointing towards a 25 basis point rate cut instead of a 50,

which the market would like to see investors are not satisfied. they're not getting enough of a bullish read from the central bank and at the same time when we look back at what happened in august, they saw the way the marks rebounded but they didn't recapture the highs of the year. that's significant. we're not going to buy into this dip this time around because the last one was pretty short lived. that is something that will weigh on the market particularly as we're now in a period we're going to think a lot more about the presidential elections of the united states where the outlook looks very uncertain on why would you want to put a lot of risk to work when you don't see clearly what's happening in the next few months. tom: so buying the dip may not come to the floor for one to those reasons. one of the catalysts is nvidia. 279 billion. the stock down around three weekdays, 14%. what do you make of the moves around nvidia and what it

signals about the a.i. theme? >> well, the very scary thing is if you look at who nvidia beat to become the biggest one-day selloff, it was meta. if you look back at when it happened, meta was in the first quarter of 2022. that major selloff was about $250 billion i think with the mark cap. but the problem was it sparked a long down trend for that stock and for the broader mark. it went off until the fourth quarter of 2022. that was month after month for downturn for tech stock and the u.s. broader market. that takes us well through the end of this year and into the first quarter of next year. that could be a head wind for a long time. the conditions are not exactly the same. but people have to look back at these major events and think is there a lesson for me to learn? and this time around it is not a pretty picture. >> mark, one basis point low in terms of the front 384.

and there was a big day of money moves into treasuries yesterday. and corporate is taking advantage of this this lower rate environment as yields move lower. a big day in terms -- in terms of issuance. takes us through with what we saw on the corporate front taking aadvantage of these yields. >> it's not unusual. the beginning of september. we're in a peer of the year between now and the u.s. election. it's going to shorten the window for issues corporate bonds in the federal reserve cycle as we. so typically, september, october are huge months for corporate issuance and you want the get in ahead of everybody. because if you can't get yours bonds out the door in a limited time span when investors will get full of bonds very quickly, you have to get them out fast. that's not unusual to see that volume. in fact what, may happen here is that we really front load the issuance into september and it goes very quiet there after so expect a lot more of.

that also they will be worried about a federal rate. that won't help corporates who have to pay more in terms of their spread over u.s. treasure ris some of you better get your bonds out fast. >> really interesting. spreads have been relatively well-behaved. mark, thank you. to all oil now extending declines after a loss of 5%, almost 5% yesterday. the possibility of political unrest easing in libya is shifting to boost production by opec plus. jouanna is joining us. what stands out regards to the pressure coming through?

there's a number of factors playing to these oil marks? >> that's right. the full gains of the year have been wiped out for brent complex. raising a will of questions as to what is going on here. a couple of catalysts in terms of data. we tad the weaker and that expected china p.m.i. numbers raising concerns about the outlet for demands coming from china. yesterday, of course, i.s.m. manufacturing of the u.s., surprising to the down side too. to demand concerns heavily weighing on the oil complex in addition to that, you had all of the oil political regions largely brushed off. you had the steal mates in libya. yesterday it i americaned after an interview that bloomberg did after the central bank governor of libya that some sort of agreement had been reached. again, that would indicate that the 500,000 barrels are likely to come back to the market to supply pressure coming through

there. this in addition of the i.a.e., you can see a surplus of 1 million per day simply driven with how much surprise is hitting the market. from nonopec plus, drivers which has been another big driver for this market inner the down side. which means inventories are going to build up and that would cap them in these prices. in addition to all of that, tom, you have some of these momentum moves, getting involved in the move down wards so that's putting on pressure to the down side when you factor in some of the analyst calls. you have the likes of morgan stanley saying they had revised down wards. so their estimate and others as city and jump p. morgan saying that interpret could go below $60 in 2025. so all of this raise as lot of

questions as to -- raises a lot of questions as to what opec is going to do because they're slated to bring back barrel with oil trading as long lowe as it is it is questionable whether he has the desituation to do so. we spoken about their actual physical break being closer to around $100. that is the question for world marks here. >> yeah, i wonder how much tension there's going to be in the room at that p.o. meeting and you have 60 dollar barrel present in 1925. were coming flew from juomanna. thank you. further pressure as we've been talking about interpret and w.t.i. down. 73.38 on brent. i know. currently flat over the last few days.

you 1993 you can clink that to the copper in hope. 8,984. just up opinion 3 of a percent. getting a modested by in this risk off marks. just below that, $2,500 level. let's check to see what's all leveled up as we think about the data front out of the u.s. of course. 1:30 uk time. we didn't get the u.s. trade balance. that will be interest as we look at the manufacturing date that showed a big drop in terms of the export orders. 3:00 p.m. uk time. job openings. bloomberg's economics expects the ratios of vacancy to the unemployed to move down to around 1.15 and 1.2. this is keenly watched by the fed in terms of the inflationary or disinflationary labor of the mark. there's so more collar coming

through in terms of the state of that economy. coming up, ukraine's president calls for more support after a russian missile leaves over 50 dead and undreads injured. the latest on that story is next. this is bloomberg will er -- this is is bloomberg

♪ tom: welcome back to bloomberg daybreak europe. let's check in on the bond marks. the risk shows flows into bond marks. treasury getting a strong bid yesterday. stabilizing to some point in the session. one basis point on the front end and the two. and 384 at the two-year level. 382 on the 10 year. marks pricing at a 2 percentage points over the next 12 months. we'll see how that adjusts on the labor data. check of the bond marks as we continue to assess this risk off environment. zelensky restating a call for air defense systems after

russian missiles killed more than 50 people in within of the strikes since it began more than two and a half years ago. we're joined by tony hall britain. what's the reaction in ukraine to this attack the consequences of it in terms of lives lost and of course, the injuries to those impacted? tony: as you've said this is one of the most serious attacks on ukraine since the start of the war. there have been further missile attacks on the western city of levyv. ukraine was saying this is two challenges. first they need to it's promise deliveries of air defenses so that they can safeguard their cities and people against these attacks. and secondly there's a larger target it's all very well to

dede fend but they need be able to strike back at the source as they would put it off the attack on russian airfields deep inside russia that are used to launch missiles and to launch plains that carry out these attacks on ukrainian cities. tom: we see this push from ukraine and we've seen it consistently from this conflict. with they want the ability to strike harder at russia and then you get a correspondenting move and agreement months later from their allies and those who support them in terms of the hardware and the personnel as well. where are we in terms of giving russia or ukraine the ability to strike further into russia then? those longer range attacks. are we getting any closer in washington and europe on allowing ukraine to have that ability? >> yes, i mean, this is one of the most pressing debates on the moments. there's a media of ukraine on friday and that's bound to be on the agenda there's a clear division. some allies are nervous about

giving carte blanche to ukraine to strike inside russia they're fearful of an escalating response from russia where they could end up with some sort of nuclear response. but others are gung ho. saying the other way is is to go on the attack and strike at their ability to even launch these attacks and they will raise the pressure to vladimir putin for some kind of settlement. tommy: tony hall pin joining us with the latest. tony, sorry to cut you off there. but we appreciate the update of course on the evolving situation on the ground in ukraine. the pressure coming through from president zelensky then and members of his team for those allies of ukraine to allow ukraine to have that able to punch further into russia. we'll see how that debate, of course, evolves as ukraine wrestles with the coins consequences. china extending loans to $150

billion. but is the finance coming to an end as the economy struggles. we're reporting live. that is next. this is bloomberg c. -- this is bloomberg. thank you. during our biggest sale of the year, save 50% on the sleep number limited edition smart bed shop now at a sleep number store near you.

♪ tom: welcome back to bloomberg daybreak europe. china is one of the source for finance pouring $1 to billion through its belt and road initiative. south africa's minister of agriculture spoke to bloomberg in beijing about his hopes of expanding with china. >> we are focusing on making sure that we build stronger relationships with china and that at a technical leveling a

cultural products are able to meet the security requirements of china. but also looking to expand the bostick of goods that we are providing to the chinese market. currently we have a large citrus expor and beef export and we are wanting to add some processes to that and using the course of these next few days and expand on those opportunities. well, bloomberg's north asia's stephen engel is at that summit. more than 40 leaders in beijing. this is a different chinese economy. this is a more constrained chinese economy. how is that factors in to what you're seeing on the ground in terms of the relationship that

china now has with africa? already well, there's no doubt that the chinese economy is suffering right now. they would like to export their excess capacity two developing nations to places like the african company. countries like south africa have with china. there are so many different facets to this story because there's the whole geo political issue with the rising voice globally of the global south and africa has a big proponent of that. and what we've seen obviously as you've just mentioned china has, you know, through state policy banks like china development bank, export import bank of china issued $120 billion worth of loans to various african nations but that started to trickle off after 2016 and through the pandemic it dried to a haul to about $4.8 billion.

why? many nations in africa are in debt crisis or on the verge of a debt crisis. three makes thes have defaulted. zambia, gappa and ethiopia. so they're reassessing how far they've been overextended with these loans from china. and china with the slowing economy is reassessing what they can get out of these investments better going forward. better returns on their investment. you see a number of different stories all across the african continue tent whether it's in kenya with a rail line that ends in nigeria's capital. you also have a light rail that looks uncomplete or not even being used. these are mega projects that china has helped finance but these african nations are so indebted they haven't been able to service their loans by rising interest rates through the

pandemic and the king dollar. there are so many things that these africa leaders are coming here to discuss. and not necessarily falling to what some have called a debt trap. tom: we're going to have more on this month's edition of "africa amplified." but up next we'll talk to the cry of of

ryan t. writes, "moving is stressful. can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet. this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff. i'm amanda and i've struggled my whole life with my weight. i had some health issues which affected my hormones and my metabolism literally just crashed on me. i've tried everything and starving myself just didn't work. what appealed to me about golo was that it focused on losing fat weight and maintaining my muscle. the golo plan and release has given me back my metabolism. golo has shown me how to lose the weight and keep it off. i will never gain the weight back again thanks to golo.

♪ >> good morning. this is bloomberg daybreak. these are the stories that set your agenda wall street has its worst day since the august meldown.

japan's nikkei slides more than 4% with european futures firmly in the red. nvidia's record route worries over a.i. and a u.s. ante trust probe. almost $280 billion from the chipmakers' value. the biggest one-day loss in america stock market history. goldman sachs says u.s. g.d.p. face as there 0 .5% hit in the second half of next year that's if donald trump win it is presidency. a kamala harris victory would see a very slight boost to growth. let's check in on these marks. flash backs to the start of august 5. when you saw that selling and you're seeing similar features. european futures looking to build around 1%. for the context around the nasdaq the worst start to a september since 2002 for the

nasdaq. the smp dropped for than 1%. we'll unpack the story with more details. futs, low by 73 points. and oil remains under water and under pressure. s&p looking at further losses. .5 of a percent. nasdaq futures looking to opponent low by 134 points contracting for a fifth straight month out of the u.s. raising their concerns about a slowdown in the world's largest economy. let's have a look across assets. you see a by of stable. yields down one basis point on the front end. on the two-year, 38. 145 on the japanese yen. strength for the japanese currency. that's weighing on the japaneseser quities.

the yen, 1.10. the latvian central bank said he would be down with a further cut. brent $73 a barrel after falling 5% on over supply. w.t.i. back below $70 a bar legal. let's return to nvidia story. suffered a single day route. $279 billion wiped off its market value. $280 million. during yesterday's trading session with the drop continuing afterhours. analysts are concerned about how long the selloff may continue. take a listen. >> high expectation which means the market taking a higher level of a disappointment. moving forward how far the nvidia or the a.i. could potentially take a step backwards. i think that will be something that i will keep my eye on.

>> i think in this type of market you have skittishness. if the demand is still there on a.i. prospect first investors to come back. >> we still predict that the g.p.u. market is going to grow by 29.9% over the next five years to a market worth $103 billion. still lots of growth and upside on this market. by 2030, it's going to be close to $1 trillion. 50% of the growth is coming from a.i. so the a.i. is really fueling the growth big-time. >> reaction there to the route that we saw from nvidia. we have calls coming through in the session from black rock and others. analysts call a little bit of concern and the impact on nvidia. we have the news on this d.o.j. probe, something that we've been working on in terms of getting

the details. leading to further pressure afterhours. anchor of the opening trade and the details of this d.o.j., what do we know at this point, kriti? kriti: the department of justice has been reaching out to customers and asking, what has the process been like with nvidia? they are bearish in terms of other players trying to get involved. i have to say this is the downside of being a big tech company. the pros being that your stock is railing, you make a bunch of money if you are invested in it, you can borrow in the credit markets at almost government level rates. t are high expectations and you are kind of running with the same playbook. the expansion is driven by tinier acquisitions, whether it comes to ai investments,

whatever it may be and nvidia has made a string of them in their claim to the top about concerning the doj. tom: it's not just the hardware's, the gpu's, and ai. they have an ecosystem and want to lock customers into that ecosystem. what is nvidia saying in response to this probe and is there a wider read across in the markets? kriti: they are cooperating with the probe, of course. i think they would push back on some of the allegations, no surprise there. this is something that boj often does with big tech companies. even though we saw a 9.5% drop in the stock yesterday, some would argue this is not reflective or a reaction to the probe simply because historically we have the ftc, doj, name your regulatory kind of supervisory authority, and that tries to probe big tech, it usually does not affect the stock. there's a president that goes back to the 1990's when microsoft out with one of the very first antitrust cases

against big tech back in the 90's and the stock would drop at every single legal kind of standpoint and legal hurdle. investors would kind of trade it around but then see right through it because legal proceedings would last anywhere from three years or more and three was on the low side for microsoft. the criticism was about at the end of the day, fundamentals matter, microsoft ended up winning the case because they were adding more to the american economy, the ecosystem and since then, every time a regularory authority has tried to probe a big tech stuck, it has not affected, maybe until now. tom: the consequences for nvidia and the broader semi conductor space as concerns amount amongst regulators around monopoly risks within generative ai. from generative ai to the telecom space, bringing you a red headline crossing the terminal. the telecoms company telia aiming to reduce headcount by 3000 positions in 2024.

this is reporting that has just crossed coming through. this is likely to impact all units across the telecoms company, that of course is focused on scandinavia largely, and eastern europe as well. telia looking to save around 2.6 billion in terms of swedish krona. the stock year to date up around 30% so it's had a relatively strong performance but looking for further cost savings and this could lead to a cut in headcount of around 3000 positions. we will keep across that story and watch how it moves at the open. some other stories making the news. spain will reportedly name jose luis -- and -- as the new governor of the bank of spain. this ends nearly three months of speculation about who will fill the vacancy. the german government plans to cut its stake in commerzbank as

it seizes on a recent stock rally to speed its exit from the lender it rescued over a decade ago. the country's finance agency, which manages the stake of about 17%, did not disclose how much it would sell or when. the government is holding, currently holding the worth that -- the stake is currently worth some 2.5 billion euros. starlink has backed down and said it will follow in order by brazil's top court to block access to x. intruding. it comes to intriguing. it comes -- intriguing. it comes amid you on musk's bitter standoff that elon musk's better standoff. let's talk fintech with the ceo of zilch, which launched in 2020 and has already over 4 million customers. the company plans to list within the next two years and is eyeing either new york or london for its ipo. that is something that is

closely watched by these markets. i am very pleased to say i am joined now by the ceo and cofounder of zilch technology, philip belamant. you have some updates coming this week in terms of profitability, revenues. where does that leave the business standing as you project out to 2025? philip: it's a big milestone for us. we turned our first profit. for a business like ours, we did this in just four years, so we are excited about that. i'm so proud of the team to get to where we are. if you go back to years, the mood music in the market have just completely changed, capital had dried up and it was an allocation of capital issue. what do we do? do we cut our way to profit or grow our way to probe? we chose at zilch to grow our way there. let's go grow our way to profit. but of course, this is always a risk. this is a strategy decision and i'm so pleased we are here talking about this today. we are seeing utilization of the

scale by customers opening the app every single day, we've grown revenue 100% year-over-year and gp 50% year-over-year. tom: do you see that revenue growth, is that sustainable, that level of revenue growth as we look into 20 35? philip: we think we can accelerate on that -- 2025? philip: we think we can accelerate on that. if you cut your way to profit, i think that's a problem, it's not sustainable. how do you actually grow moving forward? if you have growing your way there, we think we've gone through really the darkest two years, it's been really tough, and we can now accelerate off of this, we think we can accelerate that growth rate. tom: the environment around the capital markets and around the deep freeze that we see around vesey'at -- v and fundingc and funding has eased. are you seeing any sensitivity to your consumers, to your users? are you seeing any changes in

habits, buying patterns? because you have that data in terms of how your consumers, how your users are buying and interacting with your merchant partners. how is that evolving? philip: it's a great point. our model is unique in the sense that we go direct to consumer and we own the relationship directly with the customer. we live in your pocket. we can see everything our customer is doing with the product. we have seen a flight of spend from nondiscretionary to discretionary. and that was earlier, about two, three years ago. that's completely changed around from discretionary to nondiscretionary over the last six to nine months. what we've also seen as more of a flight to deb. we perk -- debit. customers are spending 25% on zilch on debit and that's obviously grown. performance and underlying credit performance look strong. we've turned the book really quickly. we underwrite customers each and

every time they use the product. tom: are you seeing a pickup in default" is? philip: we are see -- in default and delinquencies? philip: we are actually seeing a drop. i think it's this combination of debit/credit and the ability to use our product, suit certain loans -- snooze certain loans and use cash flow. tom: is there more you looking to do to move rates lower? philip: i think to be clear, and this is an important point that you raised, if you are a regulator, the regulator requires that you show an apr, whether that's a true representative apr. this is why some companies do not show apr, because their unregulated. you take your product and say should a fee ever be levied on any of these products? was that average fee divided into that line and shut the as a representative apr? a lot of our customers, 75 plus,

do not pay a single fee at all, there is no apr. we list and half of the price of the market average. that's kind of how we think about the product. tom: talk to us about the ipo. give us some news. what are the conversations around new york, around london? what is the update and time? next year it's going to happen, right? philip: we've always said we want to list of the business, that has not changed. tom: is next year a rational, does that seem a reasonable timeframe? philip: i would love to say that's good to because. we think 18 to 24 months is a very reasonable timeframe. we are taking all the appropriate steps in that direction. tom: is lender seriously in the make -- london seriously in the mix for you? philip: i would say absolutely. we built the company here, we would love to list the business here. we've just appointed mark wilson to the board. tom: do you need the lse to do more to win you over? philip: we have publicly said we chair the unicorn counsel, we

publicly put forward a brush of things that we think on the policy side need to be tweaked and changed to incentivize companies to stay and list here. however, this is only one of the criteria we will consider when we compare the u.s. and u.k. and a lot of change. we are going to stash a lot is changing -- and a lot is changing. we have the election coming up in the u.s. our company is growing 100% year-over-year, it's completely changing. we think u.k., u.s. for us are both options and we are going to make the best decision at the time. tom: thank you very much for bringing us the update from social. philip belamant, ceo and cofounder zilch. looming ricketts, talking of interest -- looming rate cuts, talking of interest rates and u.s. policy, but cryptocurrency under pressure. we will have a look at the founder and managing partner of stillmark capital firm. this is bloomberg.

♪

♪ tom: welcome back. goldman sachs is warning of a half a percent hit to u.s. gdp if donald trump wins november's presidential election. the bank's economists blame potential higher tariffs and tighter migration policies under the republican candidate. goldman sachs says it gdp will grow slightly if kamala harris wins and the democrats secure both chambers of congress, a big if. surgeon poor rates for kamala harris and -- surging poll rates for kamala harris and -- have dealt a double blow to the trump campaign. alyse, you on the organization investing across the space with particular focus on bitcoin. what do you see as the catalyst for the biggest crypto out there

in terms of the weeks and months ahead? is it the fed, or other factors at play in the ecosystem? >> in the short-term we are seeing the impact of politics and uncertainty in the november election. we have seen august to be a month of consolidation after significant price changes earlier in the year. and that's typical of bitcoin in this part of the cycle. now, what's ahead for us is much more important. and that is that bitcoin is, of course, gaining an adoption and acceptance as a store of value. it has also matured and gained market share as a means of exchange. and finally, we've seen crypto activities that became popular and saw a sustainable audience. in the crypto sphere, begin to move to bitcoin technologies as they mature, that will all be

tailwind for bitcoin and should be reflected in the price. tom: on the political line, we know that trump and his team have kinda of been leaning into the crypto space, making a play to win over that sector. and as they would describe it, turn the u.s. into the crypto hub of the world. to what extent would that be a catalyst if trump were to win in november? what are you hearing from some of the companies that you invest in, some of the players in the space in terms of the anticipation on the front? alyse: from our perspective, this is less about crypto specifically and more about the new administration's sentiment towards innovation. and so, what we want to see as bitcoin investors is an administration that is really thoughtful around regulation and preserving the value that bitcoin technologies can provide to the end-user. and so to that end, what we hope to see is a thoughtful approach to both how bitcoin is regarded

as a store of value and also as a means of change. what that means practically is -- means of exchange. what that means practically is that the value propositions be maintained and that regulators regard those and do not try to overstep. and so, for example, bitcoin as a store of value self custody is quite important, is a native part of bitcoin's value proposition and that should be maintained. when it comes to payments, what is important is how money transmitters are defined and regulated. and we would push for that or hope to see that from either administration. tom: what are you seeing in terms of your lp appetite for exposure to crypto? are you sing at -- seeing any hesitation that you want to be allocating those funds toward generative ai? bitcoin up 30% year-to-date versus the gains of nvidia, which far outstripped that

year-to-date, even despite the selloff the last couple days. are using any caution in terms of the fund flows from lp's from crypto into gen ai? >> bitcoin technologies are relevant to generative ai and other large trends that injure asset allocators are seeking his poser to. bitcoin payments are applicable to generative ai. generative ai will need a payment real that can accommodate micro transactions at scale and bitcoin's payment network, the likely network, is ready to do that -- lightning network. lightning can process multiple thousands, if not more, transactions per second, as low as six thousandths of a cent. what that means is it can be an effective partner to ai scale transactions online. bitcoin is also applicable to other nationally relevant and globally significant investment trends, like the energy transition towards renewables,

where we have seen bitcoin mining be able to fill the troughs that exist between peak supply and low demand periods, which means that new energy generation projects have an opportunity to monetize in a more stable way and investors can of course see a quicker return of capital. tom: energy partners at stillmark on some of the factors feeding into the moves of crypto, with a particular lens on bitcoin. plenty more coming up. we will break down the data out of the u.s. and look ahead to the jobs numbers later today. stay with us. this is bloomberg. ♪ ♪♪ ♪♪

♪♪ sandals jamaica sale is now on, visit sandals.com or call 1-800-sandals

♪ tom: welcome back to "bloomberg daybreak: europe." some updates coming through. there is a big reshuffle

happening right now in the government of ukraine. this by the way after but not necessarily linked to a very significant attack that led to the deaths of around 51 people in the country, a russian attack. not the two necessarily linked but there is a significant reshuffle happening. one of the big names to resign is dimitrov kuleba, former foreign minister and deputy pm until 2020 of ukraine and took on the role of foreign minister and has been traveling to countries like china recently to rally support for ukraine. he has handed in his resignation. a significant reshuffle in the government of ukraine. let's get back to the data story. use the manufacturing data out of u.s. again raising concerns about a slowdown -- you saw the manufacturing data out of the u.s. again raising concerns about a slowdown in that economy. a slowdown in orders, export orders as well. that leading to concerns about the softness in the manufacturing sector.

we have the jobs data crossing later today stateside with the bloomberg economics expecting the ratio which we know the fed scrutinizes will shrink again to 1.5 in terms of the ratio between vacancies and job hunters. that has consequences potentially for wage demands and inflation, which is why it is scrutinized by the fed. a look ahead to the jobs data later today. we will break your analysis on that front and the market selloff we are seeing, up next. stay with us. this is bloomberg. ♪ not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

with so much entertainment out there wouldn't it be great... ...if you could find what you want, all in one place? show me paris. xfinity internet customers can enjoy the ultimate entertainment experience and save on some of the biggest names in streaming, all for just $15 a month. get the fastest connection to paris with xfinity.

anna: good morning from london. i am anna edwards alongside guy johnson and kriti gupta. stock selloff. wall street has its worst day since the august meltdown as a growth worries fuel a flight from risk area u.s. and european futures lower. nvidia's record or ruptured worries over ai white $279 billion from the