tom: [indiscernible] president emmanuel macron

searches for a prime minister and bitcoin surges as trump picks paul atkins plus south korea's defense minister is replaced. martial law. ♪ tom: bitcoin is the address that -- asset of choice.

french stocks are up, looking post political uncertainty. bit of a reader footing lower. snp futures punch through a record high, gains from nvidia and others, futures are flat and nasdaq futures are down. flip da board. 102,000, historic for cryptocurrency pushing fruit the key marker on the pick by doing all trump.

linked to politics the currency is shy of 2/10 of 1%. politicians work through proposals against the president, the benchmark is down so far and we focus on the 10 year, jay powell says u.s. economy is remarkably good in officials can be cautious. emmanuel macron is looking for a prime minister. the french president needs a premier to pass the budget through a divided parliament.

>> i'm saying there will come a time that the pressure will get more intense but he will have last word. tom: let's get more firm -- from kriti gupter. what is next? where does he go? kriti: i've never learned war that i have in the last 24 hours. there is a way out and as you heard they are not calling for the resolution but the left is.

the gods pressure to find a caretaker to hold on. it was a playbook he used before to hold until he figures out his next step. whoever the prime minister may be it is likely that government will use a special law and the first couple of months you could see more austerity given constraints called months after the budget including defense and taxes, affecting fresh citizens. tom: there is sutton lee and

irony, more austerity year. who is on the list? kriti: france has a tradition of bringing back figures from the path to retake the role, bernard is a key name, that name was floated when michelle was considered, current minister of armed forces and jean a former pm and centrist, several candidates but micron is trying to show they done the job and that's why names are being

circulated. tom: equities seem resilient. kriti: yeah. the storm is beneath the surface. french market closed higher with reading on the screen. equities around the world rally but french stocks underperformed. if you look at the french bonds in the corporate debt you're seeing underperformance. an index shows the pressure, french banks took a major hit showing up in the corporate debt

from socgen, bmp top of mind. euro underperforming on the german side, premium not closing, those are signs of stress but what i'm hearing in paris is this beast love and last so the pain could be located. tom: slow steady payment for french -- or france. kriti cooper with the latest. let's do a deep dive on french assets with euro-dollar, bit of a gain reflecting dollar softness and that could be tied to jay powell on the future of

this is a well performing economy. euro-dollar at 105, futures picture posted gains, context is underperformance, french versus europe since june. year to date french stocks are down, higher in the session today. in terms of sovereign debt not a lot of movement but the spread remains in focus.

10 year just shy of 290 versus german spreads. some suggest you can get above 100 and but week ago the yields topped the yield in greece so keeping our eyes on assets and michel barnier will be the shortest serving prime minister ahead of a vote telling laure makers it had been an honor to serve france. michelle: i'm proud to build, i listen to those who said they were willing to work for good, honorable members i cannot

accept destabilization uniting a majority. tom: outgoing premier in france speaking yesterday. let's bring in dougie eights from paris. thanks for your time. momentous in france, the ball is in emmanuel macron's court, what are the next steps? douglas: very difficult to think , difficult to know whether he is a super genius or making a series of errors and isolated in the palace so i will go with the first option, he is a genius.

he's counting on the french constitution powers to enable him to continue to lead marine le pen powerless in parliament. tom: that's pretty fascinating. would this be a play to land this at the door? he can lay it at the feet of the socialists, maybe they will pay a price, is that the gambit? douglas: if he is a genius and not an idiot he is playing a long game, marine le pen

promised next election they will win and she has clear ambitions so if he's playing the long game it could be in his interest to have the right and left get in bed together because politics makes strange bedfellows and this required cooperation of bitter enemies, a marriage of convenience of left and right, it cannot hold up as they get closer they will disassociate. in the meantime he counts on his ability to carry on, no big ambitions, now that the olympics

are over, cathedral has been restored, no real portfolio ambitions, playing on the fifth republic constitution he can do his job. tom: think he sees out his term? >> absolutely. left will ask him to resign, he will ignore. de gaulle resigned and french presidents learned you play right to the line, he does not have to resign. he sees the power as autonomous.

even if his gamble was mistaken as long as he can get relief, he can run government without a majority. tom: douglas yates, micron survives in benefits potentially. pain around austerity directed at opponents. will see. thank you. coming up bitcoin tops $100,000 as trump makes his pick to lead the securities exchange commission. this is bloomberg. ♪

>> people use bitcoin like gold, not as a form of payment. tom: that was jerome powell at the summit on bitcoin, breaking through 100,000, just shy of

$102,000 per coin. joining me is mark cudmore. the naysayers have been sidelined. what undoes the story? mark: i don't see any reason to be bearish or extra bullish. i think it's hard to have a short-term call. pro bitcoin projects will encourage more institutions to get involved, this does not have

stable equilibrium, it is constructed to swing. it might go to 150, then fall back and then rebound again. the way it is constructed it cannot have equilibrium so the gambling incentive encourages whales to cash out. phone: constructed for swings, we will look to see if the whales cash out. on the bed more to do with sec pick, we heard from jay powell

say officials can be cautious. we've seen for 50 two 418, moving in to the 10 year, what is your take? mark: i think the rally makes sense, unless the economy crumbles yields will go higher. recession changes the game, as long as the government is pumping money it is hard to have a recession, what you've got to look at, a proper banking crisis

or entrenchment which might come with government efficiency cutting back on spending or general slowdown, hard to come in isolation. tom: ok, yields probably higher. mark cudmore, indeed. let's cross to averell in singapore. averell: yeah, mixed bag, taiwan stocks pairing gains, powell spoke about the bullish outlook,

china and south korea underperformed, what i want to talk about is dollar-yen, rising amid reports muddying the waters on a rate hike, back in the game because a board member has said he does not object, it depends on the data, so december move is back on the table. tom: volatility on rounds a hike. we will keep our eyes on the equity and stop story where the

kospi is down, another down day on the back of uncertainty. some lines breaking as well on south korea and european futures are lower. this is bloomberg. ♪

tom: president yoon is set to face impeachment vote after the fallout from his martial law debacle. what is the latest? >> exclusive interview, the leader of the main opposition saying it will be difficult to

impeach president you. they filed a motion to have him impeached but that is where we saw the kospi's slide so it's a numbers game, they need to hundred of 300 numbers to vote in favor, some of his own party might vote in favor but the leader of that already said we are going against the motion, not interested in voting our leader out. the big question is how will they vote because they need eight members of his party to vote for impeachment and we have comments to calm down the markets.

tom: thank you. we have been speaking to the opposition leader. the kospi benchmark is down 9/10 of 1%. french government plunges into crisis, how markets are reacting to the turmoil in france. this is bloomberg. ♪ it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local.

oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

tom: good morning. this is bloomberg daybreak: europe. these are the stories that that your agenda. emmanuel macron starts the search for a new prime minister as the french government collapses, plunging the eu's second largest economy into turmoil. bitcoin surges past $100,000 for the first time as president-elect donald trump predicts -- alexa paul atkins for the u.s. securities and exchange commission. south korea's defense minister is replaced as the opposition ramps up pressure on the president over this week's chaotic imposition of martial law. european futures pointing lower after five straight days of gains. european stocks largely looking through the political challenges of france. european futures by two tons of 1% though maybe some profit taking after five straight days

of gains. 8:00 u.k. time. futures pointing lower by two tons of 1%. s&p futures flat after a 56 record game for the s&p yesterday, driven by the story about mega tech. nasdaq 100 futures pointing lower by 1/10 of 1% after rallying around a 1% for the nasdaq 100 by the end of the close yesterday. let's have a lacrosse assets. korean equities still in focus for us, as is bitcoin. a historic moment as bitcoin breaks through $100,000 per coin level. you've had $1.3 trillion of market cap expansion for the crypto market just since november 5 and the election of donald trump. bitcoin up 4% so far in the session. euro-dollar at 105. dollar softness. we keep an eye on the euro, linking that to french politics.

kospi in korea dropping now, 910's of 1%. down almost 1% after the pressure that's come through for korean equities in the last few days. the u.s. 10 year at 418. jay powell says the u.s. economy is in remarkably good health. officials can be conscious in the next steps. france right now. emmanuel macron is looking for a new prime minister after the far right and left united in france to push through a new confidence motion against the government. let's get more from kriti gupta on the ground for us in paris. where does this leave the french budget? kriti: in a very precarious position. emmanuel macron will have to pass a special law that brings over the 2024 budget into the first couple months of 2025. that sounds simple.

what that actually means in practice is that french pit -- citizens may have to have higher tax burdens. they may have contributions linked to 2024 inflation. some of the constraints are some of the extra perks or cushions built into the 2024 budget based on economic data say 12 months ago would fold over into 2025. we are no stranger to the fact that inflation has largely changed in the last 12 months. the yield story has changed as has affordability. that will affect things like taxes, drug reimbursements. at the end of the day, how much people are able to access when it comes to their pension accounts. that's a key sticking point in french politics. tom: the prospects of a budget being passed seems pretty slim in the near term in paris. thank you. joining us on the grounds in paris. let's bring in more expertise now with the lens on the markets

of france and europe. thanks for coming to the studio this thursday morning. let's start with france then. french equities have underperformed their european counterparts. gains the last five days but in the last six months, the underperformance has been pretty pronounced when it comes to french stocks. does that underperformance continue into next year? >> yes. what we've seen this year is actually one of the only global indexes that is down. it's also the biggest underperformance since the 1990's. really massive underperformance. since the end of november, there's been a bit of change in sentiment. in europe. we've seen europe starting to rally. we think there's more room to come for a rally in european stocks. into year-end and also into next year. the question for the french is a question of improvement on the

region but also it's a bit of a mixed bag, what's happening in france. yes, you have lack of the -- visibility into next year. what will happen in terms of the budget. it also means a tax increase we were discussing just a few days ago, it means a bit more breathing space. quite a mixed bag with a big underperformance that leaves room for some upside for france. tom: that's really interesting. is that a key reason why french equities have actually been performing relatively well in the last five days? >> it is part of that. at some point, there's too much pessimism in the region as a whole. we've seen underperformance on the back of geopolitical moods, the trump election, a number of catalysts that have not been a tailwind for europe. at some point, there's just too much pessimism. if you look at the spread, you see really big discounts at

europe. at some point, the european region becomes a big bite. tom: too much pessimism has been priced in. you say there has been a sentiment shift when it comes to european stocks. how confident are you that that will be sustained into 2025? >> there's a few things coming up for 2025. first of all, ahead of the inauguration of trump, there's a rally in u.s. equity and also the rest of the world. european equity doesn't perform well. we haven't seen that after the u.s. election. there's more room to come on the back of that. for 2025, we have a lot of negativity already in terms of tariffs. we've seen the headlines and underperformance on the back of that. also underperformance on the back of geopolitical risk. if that was to fade or decrease, that would be a potential positive catalyst. also the chairman election. if we have a center-right

coalition, that could be positive for stocks. finally, central-bank diversions. the ecb is set to cut rates. that should provide more tailwinds for the european economy, especially given the fact that the euro is sensitive to rates. this should provide more support for the eurozone than other regions. tom: this is the case for europe which is a little counterintuitive, given what we are seeing in terms of the politics. you lay out the rationale for why you should see further gains for european stocks. the relative value of european stocks is a factor along with the ecb. talk to us about germany. there's an election coming up in february. what is the thinking around an opportunity linked to the german election? why could that be a catalyst? >> there's a vacuum in terms of political leadership in europe. if you get the results of the election, center-right, where they have more deregulation and they don't increase taxes, could

release a bit on the tax -- on the debt. more fiscal spending. that could be positive and signal strong positive change in the euro zone. that could lead to an outperformance and a chain of sentiment in europe that's really been lagging. that could change into 2025. tom: to what extent will europe be relying on a comeback back from china in 2025 as a driver? >> that's menacing where we would've expected some tailwind to come out of china. this has not happened at the moment. the first market reaction faded quickly. now we need to wait for china's consumer to see increasing in their own balance sheets, helping more in terms of consumer spending. confidence in the chinese consumer increases. tom: what is your sector preference? you're making the case for europe next year. where does that lead you in terms of sector preference or regional preference in terms of

where you would lead? >> obvious overall positive sentiment on europe for next year. some of the sectors we like is the tech sector. we have seen a d rating in that sector. so still we see structural positive tailwinds for that sector. another one that we still like is the travel measure which is really, we have seen good performance but still more to come. that sector tends to perform well after the fed rate cuts when you look at past cycle. some tailwind coming from those sectors. overall, sentiment should be positive. tom: i want to listen into what christine lagarde has been sinking recently. we can listen in now to the head of the ecb commenting on the health and the challenges of the zeros on economy. let's take a listen and then i will get your reaction. >> the base data suggest that growth will be weaker on the back of slowing growth in the services sector and a continued

contraction in manufacturing. further ahead, the euro area's economy recovery should start to gather some steam. consumer spending is expected to pick up as real incomes rise and investment is expected to recover as the impact of past monetary policy begins fading. tom: so i think those comments from christine lagarde align with the theory that you are setting out for europe next year. what assumptions are you making about how far the ecb goes in terms of rate cuts? >> we think the story is different from europe. we think the rate cut story in the u.s. is one where we are approaching terrains where there is room for the ecb to cut and that should provide more tilman's. coming back to the comments that she made.

yes, it's already partially in the price. we've seen massive underperformance this year of around 20%, 30% if you take the case of the cac. too much pessimism is priced into the equity markets. tom: thank you very much indeed. great to have you in the studio on the case for europe. equity and derivatives strategist at bnp paribas markets 360. now some other stories making the news this thursday. brian thompson, the ceo of unitedhealth group, has been fatally shot in midtown manhattan and what authorities described as a targeted attack, igniting a manhunt across the city for the gunmen. early reports suggest the attacker was waiting for thompson upon his arrival at a the's investor day. the attacker shot him multiple times before his gun

malfunction. the oxford at decatur with term. when it comes to the tech sector. control of allianz global investors could get dealmaking heats up in europe's asset management industry. sources tell bloomberg he has been holding on and off talks with the german insurance giant for several months. coming up, the adoption of nuclear energy. we speak to the ceo on the work of his company and what they are doing at the forefront of this crucial change. that's coming up. this is bloomberg. ♪

tom: welcome back. amazon, microsoft, meta rushing to invest in nuclear power products to meet the energy demands of data centers, surging due to the rapid growth of artificial intelligence. x energy has announced a $500 million financing round led by amazon. ken griffin and aries management, the advanced nuclear reactor the -- company is looking to bring five gigawatts online by 2039. i'm joined by the ceo of x energy, joining me on set. thanks for joining us. we will talk about why you are in the u.k.. let's start with the demand you are seeing. what kind of forecast, modeling are you and the team doing about the energy demand into the future, coming from data centers and ai? clay: we've engaged with the top

data center operators in the united states for the past several years. each of them are protecting tends intensive gigawatts of additional power demand just for their requirements in the decades to come. so it's going to really transform the way we think about power needs in the united states and around the world. tom: intensive gigawatts. you are looking along with amazon to provide more than five ? gigawatts online? by 2030 nine. how confident are you that you meet that target can you push above five gigawatts? >> that's only half of what we protect to sell over the next 15 years. so we have an extraordinary opportunity to scale with amazon. tom: the partnership with amazon is consequential for you and the wider industry. you are seeing some of those hyper scalars leaning into this. are you seeing more private capital above and beyond mag -- mega cap tech?

historically, there had been caution around the technology that some had seen as largely untested. is that private capital being pulled into the sector? clay: we are seeing it in the investment in our company x energy. we are also seeing it into investment into actual projects. amazon led this round for us where we raised over $500 million. more importantly, they committed to invest capital in actual projects to build these machines and get them going. in the past, big data said, we want to buy nuclear power if someone else builds it. amazon said something very differently. we are going to invest in that energy and we are also going to invest in actual projects, facilitate the capital to get these caught -- projects built in the united states. tom: do you see that as a model going forward? clay: i do. tom: how about your relationship amazon -- with amazon? clay: they have taken a strong

position in our company. they have joined our board. we are really collaborating with them on how we scale our business to build tens and tens of gigawatts in the next couple decades. tom: you have not yet revealed what steak they have taken in the business. clay: i won't make news on that today. tom: you have a long-term partnership and that could deepen going forward. clay: tom: absolutely. tom:the questions seems to be whether the grid is match fit for this additional surge of energy. what investment is needed in the grid? how ready is the u.s. grid to take on this additional need? clay: is one of the most attractive things about our nuclear technology. it facilitates being cited alongside data centers. in the past when you are powering debtors -- data centers with wind and solar, that has to come from disparate parts of the country. it requires a massive build out of the grid, new transition lines. our technology is extra narrowly

safe. operates on a very small footprint so we can be colocated next to industrial facilities, dramatically reducing the impact on the grid. tom: that's a big change with this technology. a report came out. they said that smr small module or -- modular reactors are too extensive, slow, risky. what are they getting wrong? clay: the first ones will be difficult. the first project of any type is always more challenging. the key difference here is companies like amazon and companies who are supporting our projects are looking beyond the first project. small modular reactors by definition are a technology that can be built in a factory environment, at scale, at volume where you achieve the economies of volume. the first projects will be more expensive than people want. they are looking forward to the 20th, 30th, 40 is project.

what the economics look like at scale. that will transform the way the world thinks about clean, carbon free power. tom: what about the technique that this technology is drawing funds away from proven renewables? clay: renewables are attractive. amazon has invested in tens and tens of gigawatts of renewables. renewables will continue to be an important part of the mix going forward. but they are not on 24 hours a day, seven days a week. industry requires firm 24/7 power. renewables are great but they don't give you anything that you need. tom: is the trump administration a catalyst for this industry or an impediment? clay: they will be a strong supporter. they were a very strong supporter of this industry and our company in the previous term. president trump will be a strong supporter going forward,

particularly in the regulatory reform area. tom: thank you very much indeed for coming into the studio. talking about the energy needs, data centers, and ai. ceo of x energy. thank you. plenty more coming up. stay with us. this is bloomberg. ♪ ♪♪ ♪♪

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>> ultimately, politics is done by the people. even if the results of the vote may go against the will of the people in the current situation, the vote result may change next time if individual members of the parliament are pressured heavily by public opinion. that's what i think. tom: that was south korea's opposition leader speaking with

bloomberg just a short time ago. we've seen south korea assets, equities under pressure once again. here is what is happening with the currency. we continue to monitor the u.s. dollar as the uncertainty persists for the governments of south korea. let's get you do some further uncertainty around the politics of france. the government has collapsed. michel barnier is just a caretaker prime minister. here's what happened. marine le pen teaming up with the far left to vote in that no-confidence motion and bring down the government. michel barnier no longer the acting prime minister, a caretaker role for now. the ball is in macron's court in terms of picking a new premier. what that means for the budget, key questions going forward. let's have a look at a different story when it comes to a reminder of the outperformance of the mag seven. strength coming through from tech yesterday. year to date, up 63%.

nvidia had another strong day yesterday. nvidia is up around 190% year to date. meta-as well, just as one example. up seven tons of 1%. in terms of the cash pile. $100 billion free cash flow just from apple alone. minting that in the last four quarters. as a collective, if you strip out apple, an additional 218 billion u.s. dollars in free cash flow. that's one key reason why it's very hard to stand in the way of the freight train that is the mag seven and the performance that you've seen year to date. expectations for many that that could continue into 2025. let's flip the board and get onto bitcoin. breaking through that $100,000 mark for the first time on record. up 4% in the session today at 100 performance year to date, 130% year to date for bitcoin. you've seen the market cap of

all crypto increasing more than 1.3 trillion u.s. dollars just since november 5, since the election of president trump the sec pick pro crypto, that has been the latest catalyst. money moving into those etf's. expectations that maybe you can get a sovereign reserve of bitcoin. the pro crypto stance of this incoming administration being reinforced by this acc pick. now above 100,000 for the first time. 7:30 a.m. u.k. time. we will be speaking exclusively with the eu's new competition commissioner. do not miss that interview. the opening trade is up next. stay with us. this is bloomberg. ♪

it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> good morning from london. we are an hour away from the