tom: good morning, this is bloomberg "daybreak europe," in tom mackenzie in london. a trade war between the world's two largest economies. the u.s. imposes a 10% tariff on

chinese imports. beijing responds with levies on coal, oil, lng and more. donald trump orders a one-month pause on tariffs for canada and mexico, as both nations pledge tougher measures on migration and drug trafficking. ubs reports net income well ahead of estimates. switzerland's biggest bank promising share buybacks worth up to $3 billion. we will bring the lives earnings from bnp paribas, dassault and infineon. tom: markets whipsawed by the tariff action. we are now in a trade war between the u.s. and china. were we ever out of one? tariffs increased in terms of

imports of chinese goods into the u.s. market, and china responding swiftly with a detailed response. european futures pointing lower 0.1 percent, after losses of a little over 0.8% yesterday. mexico and canada spared at least for now. ftse 100 futures pointing to losses of 0.2%, s&p futures stateside after the losses yesterday for both s&p and nasdaq 100, though they pair those losses currently pointing lower by another 0.2%. nasdaq 100 futures looking to drop 37 points. we look ahead to the earnings story from alphabet with a focus on data centers and advertising and search. let's have a lacrosse asset for a little bit of stability across the treasury curve. the feds austan goolsbee yesterday saying it make sense for the fed to be on pause the uncertainty around trump's policies. we have further debate from fed speakers through the day including from bostic and daily. 4.26 on the two-year, that's

where you saw the selling pressure yesterday, that has pared, more stability across treasury so far in the session. 1.0 two on euro-dollar, the euro is under pressure, brent at $75 a barrel oil falling 1.2%, a change of direction of oil prices after the strength we saw yesterday and largely down to the removal of the tariff threat around canada and oil exports at least for now. gold at $2815 per troy ounce. this get the asian market reaction to what we know unfolded between beijing and washington.avril hong standing by in singapore. avril: the u.s.-china trade war as you say, has begun. that deadline from the u.s. came, went, no signs of any conciliatory tone between the presidents or reprieve on the tariff front. i'm sure you will get into the details on china's retaliatory action with minmin in just a

bit, but i wanted to highlight the point mark cranfield has been making on the blog, the chinese authorities' response has been telling in that maybe they don't see trump backing down when it comes to tariffs. amid all this, we see how major indices in the region including the nikkei, quickly pared gains from earlier in the session. dollar-china, talking about offshore ending be hitting session highs -- renminbi hitting session highs but remarkable how the hang seng retained most earlier gains, as did the hang seng tech. couple of positives that chinese stocks have going for it, the idea that coming back from the long holiday, chinese authorities now that they have a clearer picture on what they are dealing with as far as tariffs are concerned might be confident bringing out the big guns for stimulus. most of the economists we have spoken to have said 10% hit from tariffs is something china will be able to absorb more or less. for tech in particular, they

have the deepseek narrative going for them. even though we are seeing a bit of sentiment hit, it is interesting how hong kong shares have managed to retain their gains and will be closely watching how on short markets reopen tomorrow. tom: avril hong in singapore. thank you very much indeed. mainland markets reopening tomorrow, after the lunar new year, does it change the calculus as avril was suggesting? ? president trump's 10% tariffs on chinese goods are now in effect. we have just learned that china is imposing retaliatory tariffs against the u.s. also announced it is investigating google over alleged antitrust breaches. our china correspondent minmin low has been parsing all this for us. what has been announced from beijing? >> that antitrust investigation into google, as well as a series of tariffs 10 to 15% on american agricultural machines, as well

as oil, coal, lng, a couple of american companies added to this unreliable entity list and export control on tungsten-related materials, materials for solar panels, semiconductors. very precise, targeted measures although not expensive but it shows china will not back down without a fight. some editors expected maybe china will not retaliate so quickly. clearly this is a highly choreographed move given that china had waited exactly until after the tariff kicked in at 1:01 pm local beijing time before announcing these coordinated measures. this comes as trump said he plans to speak with president xi within 24 hours. that was several hours ago. he said if no deal is reached, that tariffs could be quote very substantial. 10% is just the starting point, it could go up or down from

there, depending on how negotiations go. tom: china and beijing had a ready to make response. great, swift and targeted. oven ready response from beijing. where do we stand on those talks between china and the u.s.? >> there is an infinite number of ways negotiations could go. one thing china could do is return to that starting point of the first trade deal that was struck with president trump in his first term in office, committing to buy maybe a certain amount of american products in exchange for other things they want. for instance, more market access into the u.s. or being able to buy what they want, including advanced semiconductors for example. president trump said the reason for these tariffs include fentanyl. china producing the ingredients for that. this is perhaps an offramp that could be offered to china because that is low hanging fruit.

something beijing could easily clamp down if it so chooses. something both countries have already began working on. that is one possible thing but many of these measures are not that easy to undo. once you are on an entity list, it is not that easy to get off it, so it remains to be seen how negotiations will go. it is really a trade war that could escalate further. we will have to see what happens the next three days. tom: trump has threatened additional tariffs on china depending on how those talks unfold. china correspondent minmin low with a great breakdown of the times response to 10% tariffs from the trump administration. president trump agreeing to delay 25% tariffs on canada and mexico, at least for a month, after both countries agreed to take tougher for control measures. mexican president claudia scheinbaum promised to send 10,000 national guard officers to the border to stem the flow of migrants and fentanyl into the u.s.

>> in terms of trade, my proposal was the same one. why don't mexico's secretaries of economy and the u.s. secretary of commerce work together, so that we can also get results and learn about these issues? then he agreed, and at the end, asked me how much time i wanted to put on pause. i said let's put it on pause forever. he asked how long. i said less put it on pause for a month. and i'm sure that in that month we will be able to have results. good results for his people into good results for mexico. tom: let's get more on how markets are reacting to this latest stage of the u.s.-china trade war. mark cranfield from bloomberg's mliv team joins us with the market reaction. what does this mean, they offshore yuan under pressure, chinese assets in focus, just a fiscal response from beijing offset pressure on chinese assets? the market reaction to this

move? >> i think you have an interesting situation here. on the one hand, traders will believe there is no incentive for china to allow the yuan to get stronger. as long as it remains on a gradual weakening path, that will be where investors expected to go given the amount of uncertainty, whether the united states will retaliate more, for china will do more, the net result will be the yuan could stay on a weakening path. in the background you have a different scenario for chinese equities. there is already some differentiation going on where people are picking up on the fact that the progress china has made on a i, particularly related to deepseek, looks as though it will benefit some chinese companies regardless of what the u.s. does. you have all the publishers doing extremely well. they have results out later in the week with people will be expecting will underline the

fact that they are in a different league compared to some american competitors. already there are some signs. you can see the response of the equity market, the hang seng is up 4% on the day, even after tariffs imposed by china a couple of hours ago. something is happening here. there is also expectations china will get the big bazooka out. they will simulate the economy when they come back from the lunar new year break, so equities may diverge from the u.s. markets. at the same time, if they do keep the yuan relatively weak, that will help sectors of the economy better able to export around the american measures. this could be a win-win for china assets in that point of view. however, at any moment, investors will be expecting a response from donald trump or other parties and things are very volatile and fluid. but certainly, the net result clearly is that the dollar is very firm, traders are not going to give up on their long dollar

positions, and that would include against the yuan and other emerging market currencies. tom: mark cranfield from mliv in terms of the pressure valve of the yuan, potential stimulus and the catalytic effect of deepseek on tech-listed names as well. how chinese assets could perform as a result of the trade war and the step up we are seeing. the ceo of hapag-lloyd one of the world's largest shipping companies told bloomberg he expects u.s. tariffs to have limited effect at least in the short term. he also said trade always finds a way to overcome disruptions. he has been speaking to bloomberg's oliver crook. >> the effects on global trade will probably be somewhat limited. especially the 10% on china will not do all that much. also because we have seen recent depreciation of the u.s. dollar anyway compared to many currencies. short-term i don't expect to see a lot of effects from that but

longer-term tariffs are never good for global trade. tom: oliver crook joins us now from hamburg. he has been speaking to those executives with an eye on trade. how is the threat of u.s. tariffs playing out in the region? we have been reminded that if you gave concessions to canada and mexico, he's prepared trump to pull the trigger on tariffs, and europe could be next. >> it really gives you the playbook. the europeans will be obviously watching this closely. we remember that this is a crucial issue for the europeans. even more so for germany. this has been the great wealth creator for the german economy the last few decades. globalization, being able to have the free flow of trade is what the germans for many decades based their entire economy on. germany was the biggest exporter in the world until 2010 when china took that mantle and began to use that model. what i think is interesting is we speak to the ceo of hapag-lloyd who says trade will

find any route, but the question is where are they going to go? for the europeans, they are locked and loaded with retaliatory measures. i think they would like to strike a deal, of course. we know around the contours that trump would like to see a on that, nato spending, buying of lng and that sort of thing. what's interesting is you have tariffs that will remain with china. that will have consequences for europe. if you have higher tariffs on lng going into china, the potentially those cargoes will be able to come to europe, and that is something europe needs. where it is bad news is for the chinese economy, a lot of capacity that was going to the united states from china can't be absorbed around the world like in europe. that is one of the biggest threats to european competitiveness is being undercut from products coming from other places and that is why the eve had to raise ev tariffs because the night is a said the same thing. it'll be interesting how this

trickles of the european economy over the next couple months. tom: how does it trickle through to the polls in germany? what is the latest on the campaign trail? >> as we saw on friday when frederick merz the head of the cdu, the party leaving the pulse right now, try to make immigration the main issue and voted with the fd meeting that's the first time the centrist party voted with a far-right party since the end of the second world war. that greeted a to might've upheaval. a lot of protests, particularly hamburg which is an spd holding point. scholz was the former mayor of hamburg. this was the concern going into the weekend. after all that the vote failed because many of the cdu did not back it, so it demonstrated that merz did not have control of his party. but we heard from him yesterday basically reassuring that he would not work with the afd. have a listen to what he had to say. >> i can assure voters in

germany very clearly of one thing. we will not work with the party that calls itself alternative for germany. not before the election. not after. never. this party stands against everything our party and our country built up in germany over the past years and decades. it stands against our western orientation. it stands against the euro. it stands against nato. >> what i think is interesting is despite what can only be described as a very poorly handled political maneuver via frederick marx, when you look at the polls, it has not changed things much. he is still holding at 30%, afd is around 20%. what's interesting is you are hearing frederick merz trying to turn the economy around. anecdotally, you talk to people in germany, i talked to many

people i know and asked to they are voting for, they say they have no idea. that is people who have been voting for a long time who are familiar with the political landscape in germany. i don't know what that tells you in terms of paul like but a lot of people don't know what to do this election. tom: bloomberg's oliver crook on the ground for us in hamburg with a finger on the pulse of trade and the reaction to tariffs a time of political uncertainty in germany. our special coverage ahead of the german election continues throughout the day on bloomberg. stay with us for interviews with the german marshall fund plus the ceo of the port of hamburg and the chief executive of the hamburg chamber of commerce. the earning story coming through from ubs, the swiss lender with a big beat, around 30 minutes ago. fourth-quarter net income well above the estimates, 770 million u.s. dollars to move estimates had been $485 million.the ubs equities trading team putting in a very good performance. rising in terms of ubs equities

trading by 44%, outperforming their u.s. peers as well. they are targeting about $100 billion of net new assets for global wealth management. they did this on that front but topline for the fourth quarter of very solid beat for ubs in terms of net income. a few to plan a buyback as well up to $3 billion for ubs. i have the next hour we will hear from the ubs ceo sergio ermotti on today's earnings from the swiss lender. we will be speaking to the ceo of dassault systems reporting fourth-quarter earnings.and we will speak exclusively to the ceo. get his response to the earning story and how that positions the company going forward. this is bloomberg. ♪

tom: happy tuesday. to the earning story with a focus on the software conglomerate that is dassault systemes, based in france, reporting fourth-quarter earnings. topline in terms of fourth-quarter revenue coming in slightly below estimates, 1.7 5 billion euros, the estimates had been 1.7 6 billion in the fourth quarter. the outlook for 2025 basie revenues, sfx impacts up between 6% to 8%, and on margins for 2025 these the operating margins of between 32.6% to 32.9%, some top lines coming through from dassault systemes. we will be speaking now to the ceo of that company. please you say that pascal daloz joins us live from paris. let's start with your assessment of how these armies position the company for growth in 2025. pascal: we are pleased with the q4 results. not only because we see an

acceleration of the top lines. you can see it with the 9% growth for the software revenue. but also because we had a lot of success with -- from a commercial standpoint free this morning maybe you have seen it. we just announced a significant partnership with volkswagen group. not only volkswagen, it is all brands, audi, bentley, lamborghini, i will not name all of them and they decided to embrace not only for the design, but also, the manufacturing as well. why i am saying this? because this will show obviously the growth through the future. tom: it is interesting to talk about that partnership with volkswagen. we had seen delays within the auto sector. it is an important unit for you and the team. do you see those delays being extended? what you see from customers when it comes to autos given the pressure they are under? pascal: at the same time, they need to transform themselves.

it is striving for us the adoption of our platform. if you remember the sequence of events this year, we started by bmw, then we announced volvo, we had also reneault, volkswagen is the next one. there is a domino effect for us. beyond electrifications, there is also cost-effectiveness which is at stake and our solutions are helping them to innovate, but also, to be much more effective. one of the key take is this industry needs to reduce significantly the cycle time probably by half. this is where our solutions are sure mental -- instrumental for that. tom: the industrial innovation unit brings 49 to 50% of your sales overall. do you see cautiousness generally amongst manufacturers in terms of their ability to spend?

pascal: there is some but at the end the question is always the same, are you critical or not of them? we suffer a little bit in the middle of last year when we start to see some slowdown in investments. most of our customers make their mind and they have put the priority of investments. what we do is on the top of the list. again, i have some confidence about 2025 about spending, even if as you say they are much more careful in the way they are investing. tom: is boeing holding back on orders right now? pascal: no. we signed with boeing this long-term partnership a few years ago with a yearly ramp-up. we continue to deploy our solution within boeing. and we are helping them accelerate transformations. tom: talk about your reaction to the planned increase in corporation taxes from the

french government. what impact could that have on your business? pascal: it is around 20 million, maybe 25 million for 2025. the most important for us is the fact that we continue to put some tax benefits for the company investing in research and development. this is really the core of what we do. the spending, the specific program for the ip box, when you license your software for your ip to other entities, this is important for us to keep it because the competitiveness of europe, and france particularly, is at stake if we are touching this. tom: thank you very much indeed. pascal daloz, ceo of dassault systemes, on the back of those earnings and how those numbers position the company going forward. the partnership deepening with vw and the automaker space. there is plenty more coming up. stay with us. this is bloomberg. ♪

tom: the lines from bnp paribas are over in france planning a one point $1 billion buyback trading proving pretty strong for this business, fourth-quarter net income coming in about the estimates with a beat in the fourth quarter for bnp paribas with a net income of 3.2 billion euros. the estimates had been for 2.2 9

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tom: good tuesday morning, this is bloomberg daybreak: europe. i'm tom mackenzie in london. these of the stories that set your agenda. a trade war between the world's two biggest economies, the u.s. imposes a 10% tariffs on chinese imports, beijing response with levies on coal, oil, lng and more. donald trump orders a one-month pause on tariffs for canada and mexico as both nations pledged tougher measures on migration and drug trafficking. plus, ubs reports net income well i have it -- well ahead of estimates. switzerland promise share buybacks worth of up to $3 billion. we will bring you the latest earnings from bnp paribas out. let's check in on the markets whipsawed by the tariff details, a reprieve for now for canada and mexico. the main story is tariffs have been imposed on china and china has come through with its own playbook retaliating swiftly with the direct set of measures

hitting a number of different imports into the chinese market from the u.s. european futures after dropping yesterday, further losses set for today. down .10 percent. ftse 100 futures pointing lower by 22 points down .3%. energy is a sector will be a drag as oil prices fall. s&p futures currently pointing to further losses after a drop of around 0.8 percent yesterday. flagged lower by .3% as china response. nasdaq 100 futures also lower by 63 points, flagged down .3%. alphabet earnings later. the focus will be on the search business in the data centers and to what extent the story of growth and expansion on both of those two lines continue for alphabet. any executive say about deepseek and innovations out of china will be in focus. let's look across asset. stabilization across the treasury markets. yields are up around one basis point across the length of the

curve. a lot of selling pressure on the tariff risk. now the tariff story is moderated. 426 on the two-year. euro remains under pressure. the bloomberg dollar index is largely unmoved right now, but the euro has dropped point 5%. you continue to raise questions about whether or not we get to parity for euro-dollar. one or two right now. brent falling sharply. wti even more so. china putting in place some tariff restrictions in terms of the imports of oil into the chinese market. brent down 1%. gold just down a 10th of a percent, the yellow metal. we will check in on asian assets on -- in light of what we see in terms of the beijing response to those 10% tariffs coming through across the board from the trump administration, relative resilience, mainland markets come back tomorrow and they are closed today for the lunar new year holiday. we will see with the responses tomorrow.

a bit of a catalytic aspect that deepseek will prove a catalyst again for the innovation sector. may be beijing comes through with more fiscal response because right now the markets in hong kong are showing gains. you could see that across the hang seng up 2.3%. the tech story remains robust in terms of that listing and exposure in hong kong with a hstech index that 4.5%. the chinese yuan is down. that's the offshore pricing. china has announced a probe into google and new tariffs on u.s. products as donald trump's 10% tariffs on beijing took effect. some of the other measures include a 50% tariff on cold -- coal and lng an export on tungsten related materials. u.s. stock futures are raised earlier gains. chinese markets reopen tomorrow and tariffs on mexico and canada, trump has delayed those for a month. negotiations between canada, the u.s. and mexico will continue.

i'm going to bring you lines from the chipmaker that is infineon in terms of alliance crossing. second quarter for infineon. back to the earnings story. come through with revenues at the second quarter of three point -- they expect to see revenues. they expect to see revenues in the second quarter of 3.6 billion euros. that is slightly above the estimates of 3.4 2 billion. in terms of the outlook, a brighter picture than had been expected. the third quarter numbers coming in with a beat in the first quarter with infineon revenues at 3.42. the estimates for three point two one billion euros. we know there's a focus on the inventories for the chipmaker. we have been speaking, anna edwards, to the cfo of that company. let's take a listen to that conversation reaction to the earnings. >> we call it gradual or modest recovery it is the

electrification of cars in the third and china in the first six months are heavily impacted by the inventory correction of many of our customers be it on the automotive for the industrial side. we expect that inventory correction to phase out in the next month, and that is the core assumption for our yearly forecast. anna: we are talking now just moments -- tariffs would go on to china from the united states and china has retaliated with its own tariffs. you do business in china. we are thinking about the possibility of tariffs from the u.s. into europe. how concerned are you about the tariff impact on your business? >> to be very clear, a major

escalation of the tariffs is not included in our guidance. because we still are not giving up and advocating for free trade . we do not see it as positive for the industry's own escalation of tariffs and counter tariffs would be negative. but, i also can explain that if you look at infineon, when you think about the sales footprint but also in terms of the manufacturing footprint, we are globally diversified. we work with these situations but the speed and the intensity of when i woke up i learned that canada and mexico seemed to be pushed out by at least a month. they are watching very closely in order to analyze the implications and then to draw the right conclusions. anna: you are diversified and lots of ways but the business is still reliant on the car sector

and that could be an industry that faces more tariffs. are you making any-based assumptions about tariffs? and it's included in your numbers, have you made any adjustments on that front? >> it's very relevant. but to my point it is a global market but it's also a regional footprint in terms of manufacturing sales. we have manufacturing in asia and manufacturing in north america, and this will help us to mitigate certain effects so smaller tariffs are included. but as i said, no major escalations. anna: smaller tariffs are included but not any major escalation. can i ask about european competitiveness?

talk about europe's competitiveness. you benefited most recently from a drop in the euro, that helps a little bit. europe thinks about itself to be more competitive, whatever their suggestions which you have? >> i would not count on the currency because that could always going to different directions. here's what we are expecting the most in this is a broad consensus of the topic is that we have more political regulatory stability. we have the recent announcements from the eu. we need to look it over boarding overarching regulation that has been announced in the past and bring it down to scale it down to levels which are adequate and for investors.

tom: speaking about the back of those earnings. they reach a deal with the government of botswana to extend diamond mining licenses. we will speak to the ceo next. this is bloomberg. ♪

tom: the government of botswana and debeers have reached a deal on extending the diamond mining licenses for the joint venture. the talks were reopened after the election of the president in october. he had criticized the previous government's handling of the negotiations, the ceo of their parent company anglo american has welcomed the deal. >> i think the partnership agreement stands as an excellent testimony to how these

negotiations can work when both parties engage with a deep understanding of not only what is at stake, but the opportunities that these have to offer. tom: the anglo-american ceo was speaking in cape town. bloomberg's jennifer zabasajja is there and joins us on the ground with another ceo within that business. jen? ok, we are hoping to get the ceo was a jens of his nausea. we have technical issues -- jennifer zabasajja. as we were saying, they have signed that new agreement with botswana. we know the history of them in the economic prospects that have come through for that country that go back decades. so they have re-signed at that agreement and of course that is essential for the economic prosperity and the stability of

botswana, which of course stands out on a number of those metrics within the continent of africa. jennifer zabasajja, we have reestablished the line, she's in cape town for us with the ceo. jennifer: i am here without cook, the ceo. great to have you here. we were just listening to the anglo-american ceo saying that this is welcome news, this agreement, how would you characterize this for the broader diamond industry, this agreement between them? >> i think this is an important agreement, it is taken six years to negotiate but it will take us out to 2054. like diamonds, it was worth the wait. the agreement is important, this is the greatest public partnership in history, not just in diamonds, but globally on the opportunity to work together between debeers and botswana is a terrific one for the industry. jennifer: we don't know details about this, we know there's a

marketing cooperation agreement, talk to us about what that entails. quakes it's really important. instead of working in different ways, for the first time the government of botswana and debeers, we will bring our marketing together and funding together and markets together. there's a fantastic opportunity because we can tell the story of diamonds from botswana. for the first time in human history we can chase the diamonds that we produced so we can tell someone this diamond came from botswana, this time and came from south africa and that means we could tell the story of botswana in a new way that really tells all the good that natural diamonds do. jennifer: how's that different than what's happening in the past? what type of funding will go from both parties? >> in the past we have done a lot of marketing for diamonds. it was very much a diamond is forever. now we could tell people about where their diamonds are from, the sustainability story. above all, a people story of where the diamonds are from.

the lives they've touched on the fact that it has taken a billion years to bring this time and out of the ground but it has created good above the ground. jennifer: a new set both parties coming to the table with funding, what is that look like? >> we bring funding in proportion to the diamonds that we sell and that will mature over time. we will pull our funding together and work together to tell the natural diamonds story. jennifer: is there an initial number you put on the table to get this off the ground? >> not for the marketing, we will work together on that one but there is a big number in terms of the number we will be putting into diamonds for development fund, which will be supporting the sustainability and development of the botswana economy going forward and that starts with about 75 million dollars. that's the fund that is going to be creating the sustainable development that we can then talk about and build on in our marketing. jennifer: you talk about the story but the demand picture, if you look at the markets, not

necessarily there. is the story enough to change the demand in the markets? >> we saw good signs and demand before christmas. in november and december we saw demand for diamond jewelry up around 8% year on year. there are encouraging signals. you are right. demand in the united states has been reduced by lab grown diamonds. we have to take that on and tell the story of natural diamonds far better than we have. lab grown diamonds are there thing but it's a little bit like buying a poster in the mona lisa and putting it up an art gallery and telling people it's a real thing. a natural diamond is created over a billion years under the surface of the earth. a lab grown is created in a microwave and china in three weeks. jennifer: how much capital will it take to offset -- how much weight lab grown diamonds are carrying in the market. >> i think it's about how we spend the capital. we have a marketing budget and we now have a combined marketing budget with the government of botswana.

one of the things we do on marketing is partnering with leading retailers, leading diamond and truly retailers in different countries around the world an equal partnership on marketing. that increases the scope and the scale of the budget. in the united states we partnered 50-50 with signature, that has been successful. we had a campaign called worth the wait going around the united states before christmas. we double up like that but i think it's a quality of the story is much as the quantity of the spend. jennifer: anglo has said they want to cut costs for debeers. how are you doing both things simultaneously? >> we need to make debeers more efficient. it needs to be a more efficient organization and we have taken 100 million dollars out of our overheads for 2025. that's important. we've done that already, we will declare that done. that enables us to spend more money on things that make a difference, which is what we do and places like boats want to and how we spend our money on marketing and create desire for natural diamonds going forward. they work together.

jennifer calling talk about the u.s. demand showing encouraging signs, what about the markets in china? >> across the luxury sector in china demand has declined as chinese economic growth has faltered. we see that is a rather longer-term issue. so the first thing we see a stabilization of chinese demand which is coming through at the moment, that's an important factor to build on. but we see the growth, the regrowth of chinese demand being a longer-term story. the good news is that india has taken over where china was in india is now the second largest market in the world for diamonds and that is growing at double-digit rates. jennifer: that's more important than china? >> it has. the amounts of diamonds purchased is no greater. jennifer: thus the ceo joining us at the africa mining conference off the back of that agreement with the beers botswana. tom: great conversation. the line about ready-made

diamonds, fabricated diamonds and microwaves in china versus the real thing dug up from the ground. our chief africa correspondent jennifer zabasajja also with the question in terms of debeers and diamond demand. other stories making the moves this tuesday. the french government is facing a no-confidence vote after the prime minister bypassed the lower house of parliament to force the adoption of its budget. the far left is said it will file a no-confidence motion in a vote is expected on wednesday, but the government could survive of mps follow guidance not to support the motion. the u.k. treasury has told government departments to prepare for their budgets to be frozen in cash terms ahead of a major spending review in june. the ruling labour party has pledged to avoid the return to austerity. public finances are under pressure from high borrowing costs and stagnant growth. unprotected areas like justice,

culture and local government are most at risk of being squeezed. plenty more coming up, stay with us. this is bloomberg. ♪

tom: trumps 10% tariffs on china are in place. china response. they have a playbook. more symbolic than substantial could be the argument given that for example, a probe into google is pretty insubstantial given that business has very little exposure to the chinese markets. yet they pull in a bit a bit of natural gas and lng from the u.s. market. 10%, 15% on coal. they get most from china and australia and produce a lot domestically as well. but the list is there, it's targeted and clearly designed as a response as they gear up potentially for negotiations over that relationship.

that's what the board and have a look at the market reaction. pretty benign. may then markets come back tomorrow. hong kong listed chinese stocks holding up as an expectation that beijing comes through for more fiscal support, then they're still the expectation that tech companies can do quite well. given the innovation from deepseek. up 4.5 percent. talking of tech, let's put the board in terms of what to expect in terms of alphabet. today the focus on data centers and focus on search. there's been a split, in interesting divergence in terms of communications where the gains continue in tech is a grouping with nvidia and apple and negative territory dragging that one down, look at that divergence and will aft -- alphabet build on that. the opening trade is up next. ♪

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>> good morning, here's what you need to know. trade war after a tariff.

president trump orders a pours. share buybacks after net income well ahead of estimates, our ceo with surgery or -- sergio. guy: european futures are flat and s&p soft, where we are seeing action is airline trade and gold.

the countdown starts now. good morning. trade war started and it's back on again, china going toe to toe with the u.s., what could be a sticky story. anna: tariff on high-profile exports. the streets ability -- we

thought canada and mexico would be the story but china are. guy: ai trade is part of the narrative, we don't have mainland trade yet, yet to return from holiday. volatility is fascinating. why, why is trump not delivering? the market was right, it's the art of the deal. anna: voices said this is not a trade war, it's a drugs war.