tom: good morning this is blue "daybreak: europe". happy thursday. these are the stories that set your agenda. asian shares gain after china urges insurers individual funds to buy more stocks. the latest support for markets in the face of donald trump's tariff threats. billionaire bust-up. elon musk says show me the money to companies that promised president trump billions for ai

infrastructure. openai's sam altman pushes back saying musk is wrong. in our davos exclusive conversations, blood amir zelenskyy calls for u.s. troops in a potential peacekeeping force in ukraine. argentina's president says he could leave the mercosur trade pact for a deal with the u.s. european futures are pointing lower zero point 2% but put it in this context. you have seen six straight days of gains for european stocks, up at record levels right now. a bit of profit taking, a breather arguably before we get earnings momentum next week. was he 100 futures in the u.k. pointing lower 0.3%. s&p futures off by a 10th of a

percent but the gains yesterday, after three straight days of gains, and that index as well also closing in on record highs. nasdaq 100 performing well yesterday, currently looking lower 0.2%. let's have a lacrosse asset. jobless claims out of the u.s. later today. counting down to the boj decision on friday. growing expectations that they will hike for the third time under governor ueda. the 10-year yield is yielding you 4.60, euro-dollar at 1.04, we have been hearing from ecb officials on the hawkish end, holzman suggesting there can be patience from the ecb. $78 a barrel on brent. there is a report suggesting inventory buildup is there now in the u.s., oil prices down 0.3%. and gold holding around levels we've not seen since the end of last year, down a 10th of a percent, but holding above levels as expectations build that there is further to run,

the tariff threat is building into positioning around the yellow metal on some reports. let's get more of the asian market view with interesting lines in terms of the measures coming through for the insurance sector and state owned enterprises in china to buy more domestic stocks. avril hong in singapore for the details on that story then. avril: just in the past day, you saw how sensitive chinese stocks are to any of these trump headlines. markets are focused today on this big briefing. that included the chairman of the securities regulator for measures to support equities. what we got was how they are going to be encouraging mutual funds, insurers among other measures, to invest into onshore stock markets. but beyond the impact on a shares and the short term sentiment boost, there doesn't seem to be much in the way of a

game changing measure. we saw the csi 300, the hang seng which climbed well over 1% earlier in the session, look at how those gains have evaporated. that's the china story. but elsewhere in the region we're watching south korea. today the kospi underperforming. south korea's gdp missed. the main reason we are seeing that drag on the south korean benchmark is the benchmark heavyweights sk hynix, samsung electronics, they are underwater today. this is for sk hynix despite reporting record profits, it is failing to meet this really high bar. of course, this is a key supplier for nvidia on high-bandwidth memory chips. it faces a similar affliction to its top client where it fails to meet lofty expectations. this is what you see in the share performance. profit-taking underway on south korean stocks today. tomorrow as you say is boj day.

we have ahead of the decision tomorrow, a japan inflation print, but all bets are for a 25 point increase, this would be the most in 18 years. key to watch would be the tone of convene occasion from -- communication from ueda, if he sounds dovish that could send dollar-yen higher. there is a lot of uncertainty still regarding trump's policies. keep in mind that when it comes to japan's trade surplus versus the u.s., it is much higher than during the first trump administration, so this risk could be reflected in the yen even if the boj hikes tomorrow. tom: that trade surplus could leave it vulnerable to the tariff threat from president trump, though he has yet to name japan in terms of a potential target, but there is that expectation may be in terms of the surplus that japan could be vulnerable. avril hong with the important details around china's further

intervention to prop up its equity markets. now to the tech front and a sparring match it seems between altman and elon musk. elon musk has clashed with openai's sam altman not for the first time, this time over trump's openai ventures saying they don't actually have the money, he's talking about softbank amongst others.altman hit back questioning muskets motives. this bring in opening trade anchor kriti gupta. this was broken open by musk on x, then you had sam altman replying. there is a couple layers to this. there is a big question about that ai interceptor plan. number two, is this a split now within the trump team? what does this mean in terms of relationships between musk and trump? >> a couple of things. you mentioned this is not the first time elon musk and sam have come head-to-head.there is a rivalry especially when it comes to the fact that they both created early versions of ai together

and then had this big falling out about what the future of ai looked like, to the point that sam altman pushed forward the concept of ai in everyday lives, elon musk took a step back and said this is potentially dangerous and may need to be regulated, something he does not often say. the relationship with donald trump may be more important in terms of this rivalry because we know elon musk and donald trump have a relationship, friendship for lack of a better term. when it came to the pick treasury secretary, elon musk had backed howard lutnick publicly, and the expectation was because of that support, that's work donald trump would take his cue, he did the opposite, he took scott bessent instead. it throws cold water on the idea that elon musk is not the trump whisperer. this is $100 billion that could be multiplied potentially by

five. elon musk is saying maybe this isn't enough to hit those goals i thought was interesting. tom: and there is still big questions about how they get to that point, the first hundred billion, let alone 400 or 500 billion u.s. dollars, whether this is a fracture point in that relationship between trump and musk. we have been hearing from president trump articulating views about tiktok. a reminder that he sees things much more through the prism of economics and trade deals than national security. this is what he has been saying around tiktok. pres. trump: people want to buy it. >> those that say they know, say a spying app for the communist chinese -- pres. trump: but you can say that about everything made in china. we have our telephones made in china, for the most part. so many things made in china. so why don't they mention that? you are dealing with a lot of young people. is it that important for china to be spying on young people,

young kids watching crazy videos? >> i don't want china spying on anybody. pres. trump: but they make your telephones and computers and a lot of other things. isn't that a bigger threat? tom: president trump speaking to fox news in the oval office. you follow the twists and turns of the tiktok saga in detail. >> i will start with the last one he made, they being china are spying on your conversations, that was the argument around pulling the huawei infrastructure out of the united states and a lot of western countries. that is the parallel donald trump is making. it is not the only tech company coming out of china that has that perceived impact on the rest of the world. tiktok is interesting because in addition to talking about the ban and spying ability, we are still talking about who the buyer may be, an this is the first time in recent history where an american president is talking about a national stake

in a foreign entity based in the u.s. last time you talked about this, you were going to things like the railroad in the 1800s, the development of electric grids, things that need to be put in government hands because privatizing them puts the cost out of wack. that's the game changer, he is not only brokering a deal, he's talking about the u.s. government playing a more active role, it comes at a time when the u.s. steel and nippon steel, one of the concessions was the government having veto power on the production capacity. this is a new era with donald trump as the deregulation president, yet there is still may a larger footprint in certain areas where the president may have a bigger hand in his role in the overall close -- oval office. tom: from the domestic security of the u.s. to the ukraine. we have been hearing from zelenskyy talking to the bloomberg team on the ground at the world economic forum.

he talked about the need for u.s. peacekeeping troops to join any european force after any ceasefire. the significance of this. he basically poopooed the idea that europe could do it alone. >> which is quite contrary to what emmanuel macron has said around this. there has been a tension point between france and germany, between manual micron and olaf scholz, about who is brokering that ceasefire. even volodymyr zelenskyy who is trying to become not just a nato member but e.u. membership saying the u.s. needs to be part of that equation. take a listen to what he told our very own john micklethwait. >> it can't be without united states. i will explain to you why. even if some european friends think it can be done, it will not be. first of all, nobody will risk without united states. the second, that what can divide

nato, divide e.u. and usa that is the goal and dream of putin, to divide this unity. >> volodymyr zelenskyy speaking to our editor-in-chief of the world economic forum in davos. making the point that it is the u.s. or nobody in terms of that backing. it comes at the same time donald trump allegedly told vladimir putin to make a deal on ukraine or face the costs, that includes tariffs, for their on top of the sanctions joe biden put. tom: from posting that on truth social. and to some, at least around the edges, it suggests trump will not go full bore on the russian side of this. he is weighing up and putting pressure on putin. kriti gupta, on that significant lines that are crossed around

tiktok, ai and the competition between musk and sam altman. meanwhile, trump links to everything. argentine ef president javier milei is willing to leave the markets or trade pact if necessary to cement a free-trade deal with the u.s., adding he hopes that is not needed. he spoke to our editor-in-chief john micklethwait at bloomberg house in davis. >> if the extreme condition where that, yes. however there are mechanisms that can be used even being within mercosur. so we think that it can be done without necessarily having to leave mercosur. tom: we have a great lineup of guests, possibly with less good

sideburns, from the world economic forum. david velez founder of nuba nk. those exclusive conversations coming up. stay with us. this is bloomberg. ♪

tom: brazilian fintech nubank now has reached 10 million users in mexico and plans to expand its product portfolio. the bank is considering moving his legal base here to britain, which could be a major win for the u.k.'s efforts to attract tech companies. joumanna bercetche is at the world economic forum in davos. joumanna: we will talk about some of nubank's expansion

efforts but before that want to welcome ceo david velez. you are the talk of the town is the return of the trump administration. i want to start off asking you how you are thinking about it as brazil's largest fintech company and the largest financial services company in latin america. the relationship between lula and trump has not been so warm over the years. are you worried this will have ramifications on business? david: ultimately, brazil is very aligned geopolitically to the u.s. brazil has a lot of commodities. a lot of energy for data centers, a lot of water, big population. geopolitically it is important for the u.s. and latin america to be close. for brazil and the u.s. to be close irrespective of political party. joumanna: how are your customers feeling about high levels of

inflation and interest rates in the brazilian economy right now? david: i think the micro has deteriorated over the past couple months, but the reality is this is one more cycle. we as a company have been around 11 years. we have seen the up-and-down of interest rates and inflation five to six times, inflation going back down and up. people are used to to it. it is part of the game of operating in a country like brazil. i think businesses understand how to caution their business model to make sure they can sustain and operate within that environment. joumanna: you have 60% market share in brazil. more than one in two people using nubank. are you at saturation point? david: at some point we will run out of brazilians. but we have been saying that for about four years. even now we see over a million brazilian customers coming in the door every month.

i think we will continue to grow the number of customers, but when you look at the penetration we have in different products, we are early days. we have 15% market share credit card, 8% personal loans, 2% investments, so there is a huge opportunity to grow the base of customers to increase the revenue per customer. joumanna: what about outside brazil? mexico, colombia, argentina would you consider expanding there? david: mexico is our number one priority this year. it is a very big market. over 120 million people. there is 12% credit card penetration. over 60% of mexican consumers are still outside the banking system, so there is an opportunity to provide banking services to people that haven't been able to access the banks. the right way to do it is digitally. we just passed one million customers, becoming one of the

largest financial institutions in mexico. it is beating all the metrics we have in brazil. colombia is also following the same path. argentina, we were about to launch in 2019, and we had to pull the brakes because things changed quickly. we are looking curiously at what is happening right now with president millet. if there is continuity in the metrics, we will consider launching in argentina. joumanna: what about u.s.? u.s. is a mature market but would you ever consider expanding into the u.s. at some point? david: i think it is possible. to be very frank, if you asked me six months ago i would've said probably not. suddenly, things changed from a regulatory environment and there is a since it might be good to deregulate these different banking regulations. from the outside it felt unfriendly for fintechs and new entrants, now it feels friendly.

there is the opportunity for the u.s. to bring competition. there are a lot of banks in the u.s., you look at the prime segment, or the hispanic population in the u.s., there is a lot of lack of access to financial services and high interest rates, so we will consider it. joumanna: there are reports that you are thinking of moving your domicile to britain. you seem to be going against the grain. most businesses seem to be wanting to leave the u.k. as a domicile. david: we have not formally announced anything. what we are preparing is for the next 10 years of growth, growth next 10 years will be about solidifying what we have built in latin america, and expanding this banking model globally. we think this digital banking model is the future of consumer retail banking in the world. it is a model that serves more people, makes them happier,

generates more profits for investors. as we think forward, we want to make sure we choose a jurisdiction that might help us from a business perspective, tax perspective and financial regulatory perspective to execute that plan. joumanna: i'm sure u.k. prime minister keir starmer would be happy to hear that. positive affirmation of some of their lands. david velez, the founder and ceo of nubank. tom: thank you very much indeed. interesting lines on the u.s. and u.k. joumanna bercetche you on the ground at the world economic forum. the dutch prime minister tells us he expects the u.s. will continue pressing them to restrict asml's exports of chipmaking machines to china. we bring some of that exclusive interview next. this is bloomberg. ♪

tom: dutch prime minister dick schoof has told bloomberg that it is important that the security of europe be quote top of mind for president trump, as well as for europeans, and that the two sides maintain an open trading relationship. he spoke exclusively to chad thomas at the world economic forum in davos. >> it is very important that the security of europe is top of our minds and the top of mind of the u.s. president, in relationship to ukraine, to make sure that peace. and economically it is important that the open relationship, the trade relationship is still in place. we are looking very carefully at import tariffs and what that could mean for our trade and our companies. >> do you expect a united europe

if there becomes a tariff war? obviously, that is not what anyone wants but is there a worry that it is every man or woman for himself, if countries in europe don't stick together? >> there is always a. worry. the european council has the idea that we should do it together. whether it is on the positive side making sure europe is competitive. you might say on the negative side, if we have to react to what the americans can do. >> are there discussions already taking place within the european council how you would potentially react? >> we had discussions. one of the most important things is we should react from a strong position. europe has a stronger economy. as a strong competitiveness

already. and a strong consumer base. it gives us a strong position, so you can see how you can work out all kind of deals. >> you have a strategically important company based in the netherlands, asml, what do you expect from the trump administration? >> i think in relation to the china policy of the united states, when you look at the netherlands, we are aligned more or less. when it comes to asml, on a weekly basis we have discussions, and we want to make sure asml which is a very important tech company, very important for the dutch economy and for the development of high-tech in europe, and in the netherlands, we want to make sure that position is in place, therefore we made arrangements with asml, the local government

and a technical university to make sure asml can thrive but also the whole community around eindhoven can thrive. tom: the dutch prime minister speaking to bloomberg at the world economic forum. conversations at davos continue this hour. we will discuss president trump's energy demands on europe with the ceo of french utilities company engie. this is bloomberg. ♪ the way i approach work post fatherhood,

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tom: good morning this is bloomberg daybreak: europe. i'm tom mackenzie in london. happy thursday. asian shares mixed after china urges insurance and mutual funds to buy more stocks.

the latest support for markets in the face of donald trump's tariff threats. billionaire elon musk says, show me the money to companies that promised president trump billions for ai infrastructure. openai sam altman pushes back saying plus is wrong. plus, in our davos exclusive conversations, volodymyr zelenskyy calls for u.s. troops in a potential peacekeeping force in ukraine. argentina's president said he could leave the trade pack in return for a deal with the u.s. european futures seemingly searching for a catalyst this morning after six straight days of gains punching through record highs by the end of the close yesterday adding around 0.4%. by the close yesterday on the stoxx 600 pointing lower. in the context of a run-up of six days of strength for european equities. the ftse 100 futures are pointing lower. s&p future state side pointing

lower by .1% after three gains -- days of gains and near record highs for the s&p 500. nasdaq pointing to losses of .2% after adding more than 1%. a strong day for that tech index. let's have a look across asset. jobless claims out of the u.s. later today should give us more color in terms of the health of the labor market. you are still seeing pricing of a little over one cut through the rest of the year for the federal reserve. about 36 basis points by year end. 460 on the benchmark u.s. 10 year. not much moving across the treasury curve. euro-dollar up 104. brent a little softer. some report suggesting that there is an inventory buildup in the u.s. in terms of the stockpiles and go at 2754 and the yellow metal is just down .1%. talking energy, european natural gas for delivery this summer has become even more expensive. this after continued supply tightness and as germany

discusses subsidies for refilling storage sites, maintaining sizable fuel inventories has become crucial for europe's energy security since it lost most of russian pipeline flows. let's crossover right now to the world economic forum in davos with francine laqua standing by with a guest who can talk to this issue. francine: joining us as a chief executive of the french utility company. thank you so much for joining us. there is a lot going on here in davos for the last three days as a chief executive tries to understand what the trump policies mean for their and their business. engaging with chief executives. what do you want to hear from him? >> i think i would be very interested to hear about energy policy for the united states, for united states businesses and how energy can enable trumps agenda on growth in business thriving in the united states.

i hope it continues to play a major role. turn to market following it is exceptional. given the close demand that we are expecting on energy in the united states, i would expect renewables are going to continue to play a big role, which is important for this company. we are present in the united states and we would like to continue to be part of this growth story. francine: when you look at the ira and the fact that donald trump may be wants to take back the money that has been spent on ira, do you think that's money that will go into renewables in europe? collateral benefits of some of the trump policies? >> on the ira we will have to see exactly what happens. renewables are very competitive as an energy production mean. so, whether tax credits will continue or not, i don't think it will pose a major problem for renewables and it was such a demand. turning to europe, it is very important part of the european

mix, almost half of the electricity produced in europe last year came from renewables. so, renewables are already a reality. i think not only bringing solution to climate change, decarbonizing an energy mix, for sure, they are also bringing this better serenity. whatever is installed in europe is producing regardless of other partners, willingness to import or export to your. i think the sovereignty that renewables spring should be an additional argument for european to continue and don't lose the conviction to derail the renewables powers. francine: how much do renewables depend on the price of energy? the lower the price of energy of fossil fuels go down, does it push back actually the adoption of renewables? >> i really don't think so. in most cases you would see renewables are actually very

competitive. of course they don't suffice alone. you need to complement them with energy storage. batteries are going to be very important. you also need to look at upgrades. so all these elements are going to be very important. then we talk a lot about electrification. there is also the molecules. we cannot electrify everything, so there will be work to be done on greening the gas. fencing: talk to me about how there are a lot of tensions in question marks with what happened with ukraine. we are talking about the transit deal being put to an end. what are you expecting for energy and prices in europe to be like? more elevated or less elevated? >> nothing like during the height of the crisis. so the prices have come down and we are expecting volatility to continue to be strong because the volumes that were exported from russia to europe have

disappeared from the global markets and have not been replaced by new capacity. so in terms of situation, we are not alarmed, even though the storage in europe is lower than last year, but nothing completely abnormal so we expect security of supply to be a good level. it is expecting to be quite high until roughly 2026, the end of 2026 where new volume should come. again, this volatility renewables and energy transition is very important. because the more you can have local production and the more immune you are from external factors. energy transition is good for sovereignty for your. francine: should european users expect their gas prices are gas bills to go up? >> there is a number of factors. i would say watch the

volatility, that's important and let's keep at it on the energy transition front. francine: are you expecting to reduce the headcount because of the uncertainties in the u.s., or will you stay steady? >> on the renewables side we have a member of a project that we have in our pipeline and depending on the situation we could go from one geographic to another. we like to have good flexibility but we have good projects ongoing in the new u.s. we look forward to delivering those projects. i was discussing yesterday with some customers in the united states and expecting it to continue to deliver and be very committed. they also say it's good for them, it's good for their customers themselves. from that standpoint this determination to continue to do cover nice power and to bring power rapidly to our customers,

including in the u.s., at this stage we believe is still very much on our screen. francine: just a trump administration slow the process down instead of derailing it? >> i would say it uncertainty is not good. that's maybe one point we should ask the president this evening is, the more certainty on the less noise we have to do business that's important, it's true everywhere in the world. that's really the message that will help. it's a question on the offshore and what we believe it's an important part of the future mix and it has to take a pause, lead and let them be fine. it's a shame, but we can live with it. francine: i know you have not been inquisitive in 2024, what can we expect for this year? >> and most of our portfolio we

are trying to add value by mostly organic development. we could do small m&a. i think on the infrastructure side we have been quite open to say we have a strong presence in france on the gas side and we look forward to having a rebalance on the power networks because it is such a macro trend that would like to be part of that on the regulated asset base. we will be looking at the latin american power networks, potentially m&a. it is important to us, so we will stick to that. francine: it is very cold but not as cold as yesterday. big conversation with the chief executive. plenty more from davos throughout the day. i will hand it back to you in london. tom: another great conversation out of davos. francine laqua on the ground for a period continue those interviews through the day. plenty more from davos today and going through to the end of tomorrow. the french foreign minister,

foreign trade minister, the nato secretary-general, the eip president, nadia. morgan stanley ceo, that will be a good one. the saudi finance minister, mohammed and iraqi president. so, all of those interviews coming up. do tuning for those. swedish prime minister orloff christiansen has told bloomberg that the suspected sabotage attempts of undersea cables in the baltic sea linked to russia's shadow fleet is "unacceptable." he spoke with bloomberg's executive editor, chad thomas, on the sidelines of the world economic forum in davos. >> regardless of whether this is intentional or unintentional, it simply is unacceptable. we cannot accept the important fiber or electricity cables put

at risk. ? and what actions do you think need to be taken in the baltic sea to make sure that this doesn't continue to happen? >> the immediate action is what we're doing. we have much more surveillance. we combined civilian in the military resource in an effective way. we have an ongoing nato mission going on right now, so we also combine different countries, different resources to have a better surveillance basically and to ping-pong those vessels that we think could be part of the shadow fleet, for example, or acting in a way that raises our attention. in the long term we need to prove to countries that we don't accept bad intentions going on in the baltic sea.

tom: sweden's prime minister talking to bloomberg. interesting in the context of the u.k. and is navy challenging a russian ship and british coastal whoppers -- waters. more financial penalties on russia over the war in ukraine. trump set on his treat social network that vladimir putin should make a deal soon or face more taxes, tariffs or sanctions on russian goods. ukraine's president says any effective peacekeeping force in ukraine must include u.s. troops to support european allies. volodymyr zelenskyy spoke exclusively with bloomberg's editor-in-chief, john micklethwait, in davos. >> it's great if we have troops. but we have to understand troops will not be in the center of the capital. they will not have relaxed time. it's very important because i heard that some allies said, it's ok, we can be in the

center. no, no, we don't need such contingencies. yes, with our people, of course, because this means security and that's it. but it can't be. it can't be without the united states. i will explain to you why. even if some european friends think that it can be, know it will not be. first of all, nobody will risk without united states. the second that what can divide nato, divide e.u. in usa, that is a goal and dream of putin to divide this unity. john: you mentioned china, how important it isn't -- is china in these negotiations? china is the backer of russia. they seem to have an impact on things like putin not using nuclear weapons, those sort of

things. can china push putin and do you have contact with the chinese? >> i had some contact with xi jingping. yes, he can push putin. i think only president trump is as strong as xi jingping. i think there are no other allies who can really do it because his economy -- it depends very much on china. john: you would like donald trump and xi jingping of china to work together. >> yes, but not without us. it's important. tom: president volodymyr zelenskyy speaking exclusively at davos with bloomberg's editor-in-chief john micklethwait. argentina's half years that his

government would leave the block if necessary to get a free trade deal with the u.s. that exclusive interview is also coming up. stay with us. this is bloomberg. ♪

>> we are working very hard on the possibility of entering into a free-trade agreement. in fact, when i recently took over as pro tempore president, i pointed out that it should move forward on three fronts. one related to the fight against terrorism, drug trafficking and that is also easy to move forward on, bringing down the common extent of tariff, but

also being able to make progress independently. in other words, each of our country should have independence to be able to work on trade agreements because clearly argentina has decided to become integrated into the rest of the world, it wants to go back to its golden era in history. for that, we need to move forward on free trade agreements. we need to open the economy and it can't become an obstacle to that. therefore, while we work with the u.s. government to move towards a free-trade trade agreement, we also work indoors. so that it won't be an off circle to move towards free trade. so we are working very hard on that. >> would you leave to do a free-trade trade agreement with america?

>> if the extreme condition with that, yes. however, there are mechanisms that can be used even being within it. so we think that it can be done without necessarily having to leave as such. it's also worth noting this, because often when comments on the negative -- references made to the automotive industry. but the automotive industry has an agreement outside, so that is a false argument. so we are exploring ways for argentina to be able to open up to international trade. and why, because the division of latest -- labor brings prosperity. adam smith says so. 250 years later, that holds true. adam smith is great.

tom: the argentinian president speaking exclusively with bloomberg editor-in-chief john micklethwait. at the world economic forum, he expects donald trump's second term to bring a few surprises. >> president trump -- president donald trump is a specific president because for the first part of his professional life he was not a politician, but he was a representative of a big business, he was a tycoon in a hugely successful one. he entered the world of politics and after his business experience, that is why his way of action is surprising for many politicians, and he always thinks out of the box. tom: the eu has proposed allowing london to continue

clearing until 2028, a departure from its previous bow that the arrangement would end this summer. the commission will consult with member states on extending the transition for another three years. efforts by brussels to move clearing from london have been met with skepticism from the financial industry, which believes europe does not have the infrastructure to handle the trades. meanwhile, u.k.'s prime minister plans to present legal challenges from causing delays for major infrastructure projects in the u.k. in the latest efforts to convince them the government is serious about local growth, campaign groups will only be able to make one legal attempt to block projects, speaking a bloomberg at davos, chancellor rachel reeves said when it comes to planning, the answer can't always be known. plenty more coming up, stay with us. this is bloomberg. ♪

>> i personally think you will have to raise the revenue because the fiscal outlook is pretty bleak. and donald trump believes in tariffs. he keeps talking about mckinley. i don't think he talks about mckinley unless you are serious about raising tariffs. tom: that was bloomberg opinion columnist bill dudley says he believes the fiscal outlook for the u.s. is bleak. commenting on the prospect of tariffs as well and the animating factor when it comes to tariffs for trump is the trade deficit that the u.s. has with some of its trading partners. top of the list is china in these data points go to 2023. they are the freshest ones in terms of the overall year when it comes to the trade deficit. the trade deficit is 2023, 280 billion u.s. dollars.

this year the most recent number, china has a trade surplus globally of close to one trillion dollars. that is a factor driving trumps considerations around tariffs. we'll see what comes into play but the other list of contenders includes japan and germany and that is centered to his animosity arguably around the european union, which he describes his treating the u.s. is very unfair. let's look at what's happening for the stock rally stateside. a bit of a pause in terms of the picture on the futures front. we had three straight days of gains. you have seen a broadening out of the equity markets stateside. the top five performing sectors so far this month have not included technology. we will see if that changes on the earning story but in terms of the equal weighted s&p index, that's outperformed the s&p over the start of the air in january. the broadening out story, the breath is starting to play out and we will see if that happens. more countries trading above their 200 day moving average.

let's look at what's happening in china because a number of significant measures are coming through in terms of china compelling, the insurance industry and state backed companies to lean into the equity markets there. that could provide some ballasts this those tariffs come into play. that is a story worth unpacking free today as well. here are some of the others he need to look out for it. the french foreign minister will speak to us. nato secretary-general. the opening trade is next. this is bloomberg. ♪

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anna: i am anna edwards alongside guy johnson and kriti gupta. we are in our way from the opening trade. asia shares mixed after china urges insurers of mutual funds to buy more stocks. the latest support for markets in the face of donald trump's terror threats. elon musk bars with openai sam altman over president trump's 100