tom: nasdaq futures tumbled on concerns that a cheaper ai model

from china's deepseek could threaten u.s. big tech. asian technology stocks rally on the news. donald trump holds off slapping tariffs on colombia, after reaching a deal to send back undocumented migrants. the white house says the south american nation agreed to all of the presidents terms. ryanair reports earnings in the next three minutes. we will speak with the cfo of europe's biggest low-cost airline. tom: good monday morning. i bet you didn't see that in coming. colombia and deepseek, an and i am model from china routing these markets. that is the focus whether the thesis around the ai theme in the u.s. with a lands around the spend around nvidia has been

undone by the gains that are come through from this business based in china with one of the top-performing apps. european futures pointing lower 0.8%. set for a challenging day this monday. ftse 100 futures pointing lower 0.3%. s&p futures looking to lose 1.2% but here is the potential selecting in store for the nasdaq 100 on a week 15 out of the seven mag seven companies report come up currently pointing lower by more than 2%. let's flip the board and look cross assets. the dollar is gaining. that is a theme for the session. the 10-year at 4.58. across treasury seeing money flowing in, yields down four points on the benchmark. the fed decision comes on wednesday. will they guide along the pricing that is now in around 40 basis points for this year? euro-dollar at 1.04, down 0.3%.

brent at 77.83, sensitive to the tariff threat around colombia, whether that has been walked back by the trump administration. and profit-taking within the crypto space, bitcoin closing on that $100,000 level, down 4% so far in the session. avril hong standing by in singapore with no doubt a check on how the deepseek story is rippling through asia's markets. avril: let's dig deep into this deepseek story. we are seeing how china shares were more or less leading gains in the region today. this is all this ai fueling optimism, a bit of profit-taking underway ahead of a long lunar new year holiday, so the gauges are paring earlier gains. but if you are wondering whether this deepseek story comes from, if it is just out of left field, one of the catalysts are at this local media report that highlighted how it jumped to the

top of the app store in terms of downloads both in the u.s. and china, fueling concern that it will it clips the u.s. -- eclipse the u.s. openai or meta in terms of modeling. other shares in focus, the ones in japan under pressure. some tech names are losing their shine because of what we are seeing in china. this picture is coming despite a dismal showing on pmi's as well as concern surrounding tariffs. take a closer look at the ai related names, those linked to deepseek, one analyst put it best, saying it is remarkable how they come out with this powerful ai model at lower cost, and it demonstrates this possibility of upending the investment case for the entire supply chain. some of these names linked to deepseek double-digit climbs. i want to highlight the renminbi

because there is a reversal from last week's recovery. a lot of this after the data from china, manufacturing pmi showed contraction, the first time we are seeing it since september despite not just nonmanufacturing services slowing, underscoring the need for policy support. tom: avril hong with a check on the asian markets. further weak data out of china, in terms of manufacturing and services, that is a factor across mainland markets. the latest earnings coming through from ryanair before we bring an interview with the cfo, who is sitting on set. ryanair lowering its passenger growth target for fiscal 2026 to 206 million. the impact of boeings delivery delays a factor that has been cited. there headlines profit after tax for the full year expected to fall between 1.5 and 1.6 one billion euros, down from 1.9

2 billion last year, again the impact of deliveries from boeing. neil sorahan sitting on set with me bright and early. thanks for joining us. let's talk about boeing, that's clearly the main impact in the downgrade in passenger numbers for 2026. where are boeing in meeting those deliveries that you demand from them? are they finally catching up? neil: myself and michael were in seattle a couple of weeks ago. my third trip the last 12 months and i have seen notable improvements. things are definitely improving, the quality of the fuselages from wichita spirit much improved so i have high confidence that the additional aircraft we need this summer to get to 181 game changers and deliver those 206 million passengers will happen. but equally have a high level of

confidence that the remaining 29 aircraft in our 210 order book will be delivered ahead of next summer 2026 which enables us to catch up the growth we lost this year to get to 215 million passengers. boeing have turned the corner on the production side. they fixed their balance sheet last year. the management team are executing the plan. of course we are disappointed we will be left short aircraft again this summer. but we are operating into capacity constrained markets. the airbus operators are behind on their deliveries. they have issues with the pratt & whitney engines. i think capacity will be unusually constrained this summer, our own included, we had hoped to carry 210 passengers, now carrying 206, that will be positive for pharaohs. tom: that is the second time we have lowered the passenger growth target.

are we done? neil: i have high confidence that those aircraft will come in. i saw a number of them in the factory. the rest are on railcar exor manufacturers, the holds in spirit in wichita. they are good to go. we can physically see those nine fuselages at this point in time. then a case of getting the remaining 29 in ahead of the summer of 2026. tom: that's the additional 29 but you get another nine? neil: 170 two game changers in a fleet of 609 aircraft at the end of december, so we get another nine aircraft ahead of peak summer. tom: what is demand looking like? neil: it is robust, people are as keen as ever to get away. we have 164 new routes all looking well. it is too early to call where the final pricing will come out, but i'm pleased with what we're seeing so far. tom: guide us on pricing and

yields. how is it likely to compared to last year? neil: it is too early to guide on prices. we are only doing our budgets at this point but we will lap the ota issue we had last year, if you recall, they boycotted us in november of 2023, it took a couple months to approve the ota partners. capacity is unusually constrained. q1 will be good because we have a full easter. there was no easter in the same quarter last year. but i would not want to call where fares may go at this point. tom: are you seeing the consumer more cautious? neil: i'm seeing a and some of that wants to get away and get more son. tom: talk about the plans to expand capacity at gatwick. would you take advantage of that? could heathrow be part of the play for your? neil: able always be lowest cost

wins and efficiency. somewhere like heathrow would be needing to turn around aircraft in 25 minutes which is a big ask. it is one of the few airports in europe we don't flying into but we are keen to see more growth, more capacity. i do feel the plan to add capacity while putting passenger taxes is contradictory. if you really want airlines to grow in the u.k., then you need to bring down the taxes on the passengers arriving and leaving from the country. i would call on the government first and foremost reduce apd then start looking at the capex. i would encourage as much competition and growth as possible. tom: you have pushed back on that tax increase previously. the u.s. government, do you think trump in power changes the flying dynamics of european flyers? more domestic flights versus to locations like orlando. does it change at all? neil: people are still traveling

across the atlantic in numbers. equally with strong dollar we will see an influx of u.s. tourists into europe this summer keen to get good value for the money. a lot of those will probably end up on ryanair flights flying around but it is too early to call what will happen with the new administration. it is not unhelpful for boeing and others with trump in the white house to move things along. tom: do you expect supply disruptions? the threat of tariffs is there, we got a reminder today with colombia, but there is a threat to aircraft parts. neil: i think there is less chance. boeing is fundamentally important to the u.s. economy. i think they will be supported equally. none of the u.s. carriers take airbus aircraft. i would be helpful we don't see airbus getting caught up in tariffs that may or may not come to play overtime. tom: neil sorahan, on the back of those earnings, ryanair with

its full year traffic target 206 million ongoing delays, seeing strong demand through easter into the summer. neil sorahan, cfo of ryanair, of course. we will discuss the latest market moves following president trump's threat of tariffs on colombia. a threat that he has now walked back. this is bloomberg. ♪

tom: happy monday. the white house says the u.s. will hold off threatened tariffs on colombia after reaching a deal over returning undocumented migrants. colombia's foreign minister says it has overcome an impasse with the u.s. after earlier refusing to let two planes of migrants land in the country. a spring in bill faries. i'm not sure this was top of mind for investors come friday that this would be an issue they would have to grapple with. walk us through what we know about the relationship between colombia and the u.s. and whether this resolution will hold. >> historically colombia has been a close ally of the u.s. particularly when it comes to the fight against drug trafficking. in this case, you have a leftist president in colombia and a more conservative leader in washington with donald trump.

donald trump promised in the campaign that he would start deporting migrants in the country without documentation immediately. when the colombian president learned there were two flights on the way on military planes, he objected to that and said did not give them permission to land in his country. trump struck back very quickly, saying he was immediately going to put 25% tariffs on colombia, and those would go to 50% within a week if the colombian government did not back down. they essentially did back down several hours later. we don't know the details but the colombian president reposted a statement from the white house saying that they colombia had agreed to all of president trump's terms in this dispute. perhaps one of the fastest, shortest-lived trade disputes in recent history but it is a shot against the bow -- across the

bow against countries who think they will push back strongly against this administration. tom: quite a warning shot as you say for other countries looking to that trading relationship with the u.s. talking of demands, or at least suggestions, to the middle east. we hear comments from president trump around egypt, maybe jordan taking more palestinian refugees, as the ceasefire between israel and hamas remains under pressure. what is the latest from the middle east and the suggestion that jordan and egypt need to do more to assist palestinians? >> president trump taking a number of steps on the middle east over the weekend. he said he was going to release a hold on the delivery of 2000 pound bombs to israel defense forces. he made comments following calls with king abdul of jordan and it ships in president el-sisi, he says he wants both countries

to take in more palestinians, he thanked the jordanian king for taking palestinians for decades, but said they need to do more. he used a phrase about wanting to clean up gaza after this conflict. both countries rejecting those entreaties and pushing back on the white house. not sure where that leaves the u.s. and president trump's demands but certainly trying to make an impact quickly in what his still his first week back in the job. tom: when one week feels like six months. bill faries with the updates in terms of the standoff with colombia and of course the tensions that continue within the middle east and trump's suggestions to egypt and jordan. the u.s. dollar strengthened, then pared gains, as donald trump rescinded tariff threats on colombia. the dollar index is currently up 0.3%. for more, let's bring in editor for asian markets paul dobson.

walk us through the market reaction to this standoff between colombia and the white house. it seems sidelined for now. we are still seeing pricing to the upside when it comes to the greenback. >> good morning, tom, as bill was saying that mini trade tif between colombia and the west may have blown over quickly but it still left an indelible mark on markets. last week we had gotten so comfortable with the idea that we were having a nicer, kinder, softer approach to tariffs from the u.s. president. this week we have got a reminder that tariffs are a tool he is willing to deploy at the drop of a hat, and people need to be on their toes and watch for that. with that sword of damocles hanging over markets, you have a higher risk premium coming back to the market, that is why you see the mexican peso and south african rand still lower despite

the swift resolution of the colombia crisis. tom: we know it is uncertainty about tariffs that is factoring into fed decision-making. we have the fed decision on wednesday. are we expected to hear anything from jay powell and co. around how they are factoring in the threat of tariffs? >> it will be unavoidable for them to take some questions on it. i think this will be key for the outlook for the fed and u.s. markets over the course of the year. at the moment, the market is expecting the fed to continue to ease interest rates this year, albeit at a much slower pace than we have seen at the start of the cutting cycle. if there is an intimation that the u.s. will be on hold, or the fed will be on hold longer as it waits and sees, or if there is any suggestion that if we get inflationary policies, they may need to hike again, the market will not like that much given

the run-up in bond yields we saw in the lead up to trump taking over control in the u.s. that's the risk factor people will be watching carefully during the fed meeting this week. tom: executive editor for asian markets paul dobson on what to watch for from the fed at that meeting later this week, wednesday of course. coming up, the outlook for the global ev market against the backdrop of president trump's rolling back of u.s. electric vehicle targets. how is that roiling the sector? we will get the analysis and details coming up. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak europe." nissan may slow a planned wrap up of u.s.-made electric vehicles on uncertainty around trump's energy policies. production plans in mississippi will depend on whether the 75 hundred dollars tax credit for ev's is scrapped as threatened. a japanese media report over the weekend said nissan is planning to thousand job cuts in the u.s. this year. 2025 is looking for another record here for global sales of electric vehicles. the pace of sales will differ

around the globe, as europe rolls out new policies and the trump administration changes as we were mentioning u.s. government policy, particularly that support for the ev sector. ryan fisher from bloomberg's clean transport team is here to explain the year ahead. thanks for joining us. give us an update in the main changes happening within the ev markets and how much is coming from the trump administration. >> we do a 10 things to watch each year. the ev market is a big one. we think it will keep rising, about 22 million ev sales. all the headlines around ev sales going down have been growing. we think europe is a good place to start. about 33% growth this year because the fuel economy standards are getting stricter. tom: this that? cars and trucks? ? >> 33%. anything with a plug.

because the fuel economy legislations are getting stricter. these automakers face multi-billions of fines which means they have to put more ev's on the road. the other thing they can look at doing is selling less internal combustion vehicles or putting the hev's out there. we have seen polestar come out recently and say hundreds of millions they can make in revenue from selling the credits. full trigon looking like it has one of the hardest tracks tire tread to beat this target. less pressure on the u.s. automakers because trump is revealing this fuel economy legislation. very important for is going on there. tom: do we have clarity on how much that will impact sales and productions of vps in the u.s.? we are trying to get to grips with what is exactly going to be implemented. >> do you have nissan saying about jobs about the ev tax credit. tom: that is what trump wants to see. >> so much as talk and how much

will be put into action? there is two sides to what is coming out. the 7500, even if he does get rid of that, i would expect a bump in sales this year because often consumers realize the tax credit will go and they start buying vehicles read also, with the manufacturing tax credits, people saying i will put billions of dollars into manufacturing facilities largely in republican states. how this will rollout will be an interesting year. tom: you may get republican lawmakers pushing back given that a lot of spend is in their states. talk about the charging infrastructure. china is leading on a number of different fronts when it comes to the ev sector. where does china stand in terms of charging infrastructure? >> china is about 25% of ev sales last year. tom: global sales 25%? neil: in the market, yeah. a real big growth still expected

this year. they have a scrappedpage scheme and that means you need a lot of charges. the fast charges in 15 to half an hour, they have a million of these, the oil and gas majors are significantly behind so you will see them going from 70% of fuel sales in the market for companies like petrochina and they will this year have to be more aggressive on their charging infrastructure rollout. if you put into perspective china versus the world, similar trends whether oil and gas majors talk a good game, the biggest targets are rolling out charging infrastructure however they are behind. tom: smart analysis and very timely. ryan fisher, analyst in bloomberg clean transport

tom: good morning, this is "bloomberg daybreak europe," time tom mackenzie in london. nasdaq futures tumbled on concerns that a cheaper ai model from china's deepseek could threaten u.s. big tech. asian technology stocks rallied on the news. donald trump holds off slapping tariffs on colombia after reaching a deal to send back undocumented migrants. the white house says the south american nation agreed to all of the president's term. plus, qatar reported to confirm a deal to release an israeli hostage and allow palestinians to return to northern gaza. president trump calls for egypt and jordan to take in one and a half million people displaced from gaza. let's check on the markets and the focal point of investor angst is an ai model out of china, deepseek, one of the best-performing apps on the apple store, an open source

model causing anxiety for investors questioning the thesis that the spend, the capex spend on companies for nvidia gpus, will hold up as a thesis around the support for this ai revolution. european stocks taking a hammering in terms of futures at least, looking to lose a full percentage point. ftse 100 futures in the u.k. pointing to losses of 0.5%. s&p futures looking to lose around 79 points. nasdaq futures with that tech heavy focus, currently pointing to losses eye-watering of around 500 points, lower 2.3% on a big week for tech earnings with the big members of the mag seven, five of the seven reporting this week including meta, who caused concerns friday. talking about that capex spend themselves. let's focus on dollar strength. yields coming down across the treasury curve leading up to the fed meeting wednesday.

4.58 on the 10-year. euro-dollar at 1.04. the single currency down 0.2%. brent taking a knock linked to the terror threats against colombia, down 0.8%, and bitcoin back below $100,000, there you go profit taking the cryptocurrency down four point 5% in today's session. let's get to the deepseek story. chinese ai startup deepseek rocked global technology startups, raising questions over america's tech dominance. buzz group over the weekend about the latest ai model being cost-effective while running on reduced capability chips. that is essential in the story. let's get analysis with robert lea from bloomberg intelligence. you have been doing research well before all this buzz kicked off. you know this business inside and out. talk to us about who deepseek are and how the firm has managed to rock the tech world at least for the moment.

>> they are an innovative chinese startup whose history goes back 18 months. they have been on our radar at least the last seven months. from an investor perspective in asia, they are a well-known company, although the flurry of new stories the last three or four days has brought them more prominence with european and u.s. investors. the fundamental reason they are doing relatively well is the earlier chip exports. like any barrier or potential challenge in life particularly from an engineering perspective, you need ways around it, so that spurred chinese companies to focus on innovation and that is what deepseek has done. they have been at the forehead of developing a very novel architecture, something referred to as a mixture of experts, which is more computationally efficient, therefore, significantly cheaper to develop

and train these models. it is a wake-up call particularly to our colleagues in the u.s., or i should say investors in the u.s., that this is a bit of a two horse race between the u.s. and china. and that china has inherent strengths in software development. heard me say in previous interviews we have done the technical barriers to entry in software are significantly lower compare and contrast with semiconductors. not to trivialize the challenge ahead of the chinese companies, but they have traded on their inherent strengths and are increasingly breathing down the next of big u.s. tech titans. tom: in terms of the competitive threat, does it derail the ai thesis that it held up until this weekend? where is the pain point, is it nvidia with the gpu chips given deepseek created this model with

the lower end, or openai and partners like microsoft? where's the pain point and to what extent does the usc it's competitively the eroded -- lead the eroded? >> many times when stocks are priced to protection -- perfection on punchy multiples they are sensitive to negative headlines like this, that explained the market reaction we have initially seen. whether that is a more sustained issue, both in terms of markets for the real businesses of u.s. tech platforms remains to be seen. but tech never stands still, companies are always innovating and the chinese, this hammers home the point that chinese companies in software are highly innovative and rapidly narrowing the gap on the software side. whether that leads to change in strategy from the u.s. we will have to wait and see but in

terms of hardware and semiconductor supply, there is no one else to challenge nvidia. i would imagine the longer-term impact on sentiment towards nvidia is unlikely to change because if you don't take supply from nvidia, who else are you going to get chips from? this is a bit of a wake-up call, we can say that at least. there is complacency in this market particularly with the valuations stocks have been trading on. tom: a wake-up call for markets, for anyone who is not reading rob lea's analysis. he has been writing about this company for seven months. thank you for the context. let's get you the set up in the earnings story in europe. that is a massive week for the earnings of europe in terms of banks, tech, pharma, luxury in focus. lvmh, asml and sap among the companies reporting for let's bring in emea earning specialist

maggie for a review. the luxury story seems to be turning around. his lvmh going to build that picture of a more positive backdrop for luxury? >> is starting to look that way. it recently regained its crown as europe's most valuable company again.we have seen investor sentiment improve off the back of better-than-expected earnings, notably from richemont, burberry and the has upped the ante for tomorrow's report from lvmh. we are expecting organic revenue declined to slow in the key fashion and leather goods segment, with the man starting to come through from the u.s. this year most growth is expected to come from the u.s. while we expect china to remain weak going further into the air. given lvmh is one of the most exposed to north america, it is well-positioned to benefit from the rebound in that region. tom: u.s. bank earnings

performed topline very well. how much is there a mirror effect in european bank earnings? deutsche bank reporting this week, nordea, seb. >> 2025 is gearing up to be a pivotal year for european banks. we have seen the share rally of over 75% the past two and a half years. that is defied monetary easing but going forward we see more estimate cost of the year ahead which is threatening to derail that progress. having said that, some top results from u.s. bank so far suggest positive momentum particularly for deutsche bank this week. we have seen morgan stanley and goldman sachs see positive gains in fixed revenue trading and in the fourth quarter we're expecting deutsche bank to see a 70% increase which compared to peers is at the top end of that. when it comes to the nordic banks this week, the swedish contingent is expected to come under the most pressure given rate cuts and how those will

impact net interest income. having said that, we sought results from swedbank last week which were better-than-expected, which suggests the fall will be less than anticipated and we can expect more resilience than previously thought. tom: what about chipmakers in europe, asml, st micro? >> the outlook is looking slightly up on in the air. numbers-wise, asml not looking too bad. it's shares took a knock last week on potential of u.s. export curves grade there is uncertainty over the spending plans of its key partners particularly intel and samsung. on the plus side, we did see bullish capital expenditure guidance from its main client tsmc which near-term is expected to be a real upside and may make up for we elsewhere. consensus is pointing to a 25% surge in sales and order

bookings in the fourth quarter expected to rise sequentially compared to a weak third-quarter is positive. moving to st micro which reports on thursday, not as rosy there. the recovery as expected could be delayed even further, as we expect to see weakness in the industrial and automotive segment sprayed we have had in my mind favorable outlook, microchip and texas instruments, making that recovery look more questionable. tom: the capex spend from tsmc could provide support for asml and its lithography machines. thank you, maggie, for a fantastic set up for the earnings story for europe this week. four weeks before germany's snap election. the political temperature is rising. 10's of thousands of people marched in german cities over the weekend in protest against the far right afd party.

elon musk has been a vocal supporter of the afd made a surprise virtual appearance at the party's launch on saturday. let's get the details with oliver crook who is in berlin for us. what did musk say at the rally? his support has been there for the afd. now he appears at the rally virtually. is it changing the momentum for this far-right grouping? >> it is an interesting question whether it is changing momentum. interesting that he is waiting in at all. this took everybody from surprise in december when he began to wade into german politics but this has been his consistent rallying cry. he did that interview with alice wiedel and appearing before the crowds. when he has these conversations, it begins on a basic economic policy level. let's listen to where he began the conversation. >> i think you want more self-determination for germany and countries in europe and less

from brussels. that is my opinion. i think there is too much bureaucracy from brussels. too much to be much more libertarian, much more sort of cutting back regulations. and that is something obviously, elon musk is very much in favor of. but then the conversation sort of progresses and it becomes clear it's not just that, right? it's against this idea that multiculturalism is diluting societies. i'm saying that basically the afd is going to sort he went on to say that he thinks there is too much focus on past guilt and that children should not be guilty for the sins of

their parents, i.e. their great-grandparents, that is in the context of what we saw in the second world war. when you talk about the afd, this party has within its ranks people that are designated i the government as extremists who are suspected to have nazi sympathies. when you have that weird digression in that conversation with alice wiedel and elon musk when they talk about how hitler's was from the far left, and it shocks the german establishment, at the brandenburg gate you saw the tens of thousands of people protesting. today olaf scholz in poland with donald tusk to note the liberation of auschwitz. again these leaders talking about how concerning this is. the polls are more or less unchanged. the cdu is deleting with 30% but it is an interesting development for the german political establishment and one that the establishment is not know what to do with. tom: and his comments about too much control from the global

elite, coming from elon musk, talk to us about the political firewall traditionally blocking the afd from actually gaining willpower. -- real power. is that firewall holding up? >> what is interesting is in the lead up to this election, not the last few months but the last couple years seeming to test the waters saying maybe the cdu could team up with the afd on some local policy issues, and you have got a huge backlash from the political establishment in germany, and there seems to be a door opening on this issue for immigration that the cdu wants to put forward that would impose border controls more permanently in germany, that would expedite deportations, he was saying we just want to get this done. massive backlash, he has changed the legislation to put language that would make it hard for the afd to support.

but this does not resolve the issue. this is something you see everywhere in germany, sorry, in europe whether france or the united kingdom, the political establishment not understanding how to deal with this approach. this is something alice wiedel said a couple weeks ago when i spoke to her. the germans feel they don't have a choice on the conservative right because in any government there will be a coalition between the right and the left. tom: thank you very much indeed. oliver crook on the ground for us in berlin with the latest on musk's support for the afd and the spd chancellor olaf scholz's concerns being voiced around the cdu and how it is thinking potentially on some issues working with the afd. we are joined by the ceo of global carbon ratings agency bezero carbon, as it seeks to expand coverage after a successful funding round. this is bloomberg. ♪

♪♪ ♪ three little birds ♪ ♪♪ ♪♪ ♪♪

tom: welcome back. global carbon ratings agency bezero carbon raised $32 million in a series c funding round. the london company will use the fund to expand ratings coverage and boost international present sprayed with me i'm pleased to say is bezero's co-founder tommy ricketts. we touched on the raise and how you will deploy that capital. $32 million, maybe i will get a question to you on valuation later, but it is not insignificant. what does it signal at a time when we are seeing a trump administration and some others walking back on attempts to get to net zero? >> did was a difficult climate

for the funding. the content might not be huge and certainly items software it is more than hardware but it is a good incentive to say we care about climate change. from singapore they are saying that is a national active to make singapore the home of carbon markets in asia. tom: they are one of your key investors. do you worry about the cold winds that are coming through as governments, not just in the u.s. reassess the commitment around esg, the commitment around the transition, how much of a headwind for that be for your business? tommy: we are seeing a lot of governments taking carbon markets more seriously. looking at market-based solutions for how to pay for their climate solutions. if you remove the u.s. from the equation, although corporate america is active, you have a number of countries looking to use article six markets which is the u.n. mechanism to embrace

this trend. tom: how are you putting the funding into play? tommy: have an office in singapore and the west but looking to be more active in asia. another is to embrace a imc nd see how it can change our business. the key thing is corporates. large corporates are buying for the long term, so they are looking through any short-term politics. tom: what is revenue growth looking like? what is a valuation you might be looking like? tommy: double, double, double is the stage the first two years. valuation depends, but we got an up around which is good for a series c at this stage. tom: plenty being forced to do down around spray not the case for you guys. is the u.k. government doing enough? how would you rate this u.k. government support for the tech

sector and the work you are doing? tommy: in the narrow definition, we want from the u.k. government is to be active on defining the use of net zero strategies. saying to the economy, you can buy high quality wants and that would be a huge demand signal. on the broader scale, what do you want from a tech founder? good tax regime, good employment, good immigration rules. and good skilled labor. definitely getting good skilled labor. the uk's home to science and finance hubs. tom: and you want to see regulation? tommy: regulation is important for us because we are like a financial service but unregulated. a lot of customers are banks, big commodity players, they want ratings as a risk instrument and if we are unregulated it is difficult to say to her an investment to pandy i trust this

third party. that is important for us in terms of ability. tom: i want to fall two questions into one. the treasury listening to that and what is the potential market value of the sector? >> treasury are listening to it. our call would be carbon and esg are cousins. they are not necessarily the same thing. hopefully they are listening. it is about grasping the broader impact. we did an analysis that said science-based aligned targets, scope three emissions about 6 billion times 15% of global emissions, if everyone paid $16, $100 billion market overnight. potentially with the u.k. as a hub for that, you can have huge impact on jobs and growth. tom: thank you for coming. tommy ricketts, the ceo and cofounder of bezero, on the back of that $32 million raise. lots more coming up, stay with

us. this is bloomberg. ♪ pes are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

tom: happy monday. big week in terms of earnings. we have big earnings from europe. we had ryanair earlier and the banks and luxury space in europe. the focus stateside will be on the four out of seven mag seven companies reporting, including apple, meta and microsoft. the question continuing around valuations and whether the data from these companies can justify the stretched valuations, because when you have that competitive threat out of china with deepseek. this is the view 12-month forward profit margin estimates for the mag seven companies. you see the crocodile-mouth shape versus the equal weighted forward 12 month margin

estimates from the s&p 500. that gap is there and that leads to questions at least for some. let's have a look at the deepseek story. this was founded by a hedge fund owner in china. a scrappy start up. they managed to create a model open source interestingly that is creating efficiencies with older more legacy gpus. that is raising question marks whether the competitive challenge will be facing the u.s. companies and whether that thesis will hold up. here is how people are looking into this company. volatility is getting across the bond and equity space. the fed decision on wednesday. does jay powell keep in play 43 basis points traders are expecting in terms of rate cuts this year? the open of trade is next. this is bloomberg. ♪ world that actively cools and effortlessly adjusts to both of you. sleep up to 15 degrees cooler on each side. it actively cools by drawing warm air away from your body,

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>> good morning from london, i am anna edwards alongside guy johnson and kriti gupta.