>> welcome to bloomberg markets. u.s. markets are watching for more details out of the white house after president trump said he would introduce new tariffs on steel and aluminum. let's get a quick check on those markets because that is not stopping them rallying. the nasdaq 100 up 1.1%. plenty of stocks higher today. rockwell automation after an earnings beat and some steel stocks.

the 10 year yield, 4.4846, unchanged from last week. the euro trading at 1.0312. the u.s. dollar strengthens and of course as there is a lot of chatter about the ecb neutral rate and also the risks inherent in the u.s. trade posture. and with that now, let's go to europe because this comes as an ai summit is being held in paris. the french president just spoke. for more on this we turn to tom mackenzie at that summit and with the new french finance minister, eric lema. tom: the minister of finance standing by for this conversation and we will start with that announcement from the prince president -- from the french president, around 109 billion euros of additional investment nce to build out ai data centers and

infrastructure, to better position france. is this the french response to stargate in the u.s.? eric: we had started that a long time ago. it was always our policy to build nuclear power plants to provide clean energy and independent energy in france, stable and cheap. this plan is to finance more than 100 billion euros in data centers and around that, research teams with developers and scientists and we will increase our investments and --

tom: you are confident that this funding will be delivered and it will be enough? eric: there is no reason to stop here. [inaudible] the airline industry is booming in france and we want [inaudible] tom: we've had news today from

president trump on tariffs in steel and aluminum. what should the european response be to these tariff threats? eric: president trump is a dealmaker, so europe will answer as strongly from a position as the united states and either we will have our own tariffs or we will negotiate. tom: europe already has reciprocal tariffs in place of u.s. steel from the previous trade conflict. they are now frozen. they could be unfrozen in march. is that an easy response for europe to go to? eric: i will not give the answer before we have the official answer from europe. tom: how much pain is europe prepared to inflict on the u.s.?

eric: we are prepared to do whatever is necessary to be balanced. we have the same tools and the same weapons and we will use them. tom: and we can assume the european commission has a list of targets that they would enact tariffs on. eric: we are ready because we knew that was coming. tom: ok. president trump has asked for a probe into taxes, globally. the digital tax that france has overwhelmingly impacts u.s. companies here. would you and france consider dropping that digital tax in order to avoid a trade war? eric: we have put together a tax of digital companies that we are maintaining and -- comes into

another type of country with the united states. tax is a question of sovereignty and every country has its own tax system. tom: but would you consider putting the digital tax on the table as a negotiating chip? eric: it is not a negotiating tool. we have it already in place. tom: so the digital tax is not changing. eric: not changing. tom: there was some debate last year that you might raise it to 5%. do you put that debate on hold? eric: we will have the negotiation and the discussion with the u.s. administration. tom: investors are looking at france around questions of political stability. the prime minister has pushed through his budget. how certain can investors be of political stability towards the end of this year, or is another snap election the most obvious

outcome? eric: we have projected and we are working on the next project and our goal with the prime minister is to -- that will take place in 2027. the policy we are putting in place, we have stability in the medium-term. tom: so we can rule out snap elections later this year in france? eric: at this stage, the parliament is supporting our policy and our president. tom: and when you speak to business executives globally, who are looking potentially to invest or to pause investments, do you have a sense that the french brand has been damaged as a result of political uncertainty? eric: i don't think it has for

two reasons. we had more than 100 billion of commitment in france and if you look at the price of the french 10 year debt, it was higher than -- a few weeks ago. hopefully the policymakers -- tom: 5.4% is the target. eric: we will stick to that and we will target 3% in 2029. tom: is that realistic? eric: it is a commitment of france and my european colleagues. tom: i want to loop back to eu ai regulation. that is being implemented in europe this year at a time when president trump is slashing ai regulations in the u.s. to what extent does that hamper europe? eric: you are right.

on top of the agenda, we have an agenda of -- the summits in europe are really geared toward that goal and we are working on it. ai regulation is not the biggest problem for the investors. we have other regulations that we will/. tom: so that should be the focus, should the au ai act -- should the eu ai act be reformed or rethought in light of the changes around regulation in the u.s.? eric: -- what they tell me is the way ai's emblem as it may be a problem for other countries. not the ai itself stop so we will adapt to cope with the demand. tom: on the investment front,

i've been speaking to executives and one ceo said to me, funding infrastructure in europe is the wrong solution. we ought to be funding value creation. is there a risk of funding around data centers and chips that ends up being misplaced? eric: there is a plan for infrastructure. so i am quite confident that we will have both at the same time. tom: does europe have the fiscal room to spend on both the infrastructure and value creation? eric: it is not fiscal. investment is coming from private investors. we don't need tax support for that. tom: what are the productivity

gains that could come? what are you projecting in terms of the potential upside? eric: i'm sure you have read the report. we have to increase productivity in france. that goes for investing and trading and we do both. tom: thank you very much. eric lombard, the finance minister of france on that ai investment and the response to those threatened to trump tariffs. vonnie: a very revealing interview from the french finance minister. thank you tom mackenzie in paris. coming up, some major biotech and pharma companies will report earnings this week. vertex after the bell. you can see vertex outperforming over the last year. this is bloomberg. ♪

i can't believe you corporate types are still at it.

just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

vonnie: this is bloomberg markets. let's highlight a couple individual equity movers. isabel lee joins us. isabel: lyft said they will launch driverless vehicles as soon 2026. the company plans to scale valve -- thousands of vehicles and said they are in advanced planning to finalize the autonomous vehicle platform. lyft is playing catch-up to rivals like uber in bringing autonomous rides in the u.s.. hyatt hotel announced they will buy playa hotel resorts for $13.15 per share, or about $2.6

billion. this expands their reach into the all-inclusive resort market. hyatt began investing in 2013. you can see hyatt shares edging lower. lastly we are looking at eli lilly. the company is -- to help finance its purchase of a cancer drug from scorpion therapeutics. shares edging slightly lower. the company is looking to sell bonds and as many as six parts according to a person familiar with the matter. this comes after a few weeks that you live mitt -- eli lilly said they would pay to acquire a cancer drug scorpion is testing. vonnie: thank you isabel lee. that brings us to our stock of the hour. vertex find more -- vertex pharmaceuticals fourth-quarter will be out after the bell. the company expect revenue growth on newer treatments, including treatments for cystic fibrosis. for more we are joined by the

u.s. biotechnology lead analyst at goldman sachs. there is a buy rating on vertex with a price target more than 20% higher than where we are trading today. let's get to this new non-opioid treatment we have in the works. what color are we going to learn on the conference call about that part of the pipeline? >> thank you for having me. we are really looking to understand the cadence of launch dynamics as they look to transition patients who exist right now and are taking drugs on existing franchise in addition to 6000 patients who are known but have actually discontinued drug in the past as well as the naive population. just an idea of how quickly they can go after a new group of patients in addition to having the transition over. vonnie: what about the price point?

we are getting the idea it's going to be around $15.50 per pill. is that doable? does that mean there will be large take up? salveen: for this drug in particular, the price point came in at almost twice where the branded opioids are, and what we will be looking to understand is the work they did to set pricing in the context of competitive dynamics. they have cited over 80 million individuals in the united states taking acute pain drugs and $16 billion in health care costs attributable opioid pandemic. i think they will put that in context. in addition, what we are trying to understand is how they've been working with retail pharmacies as well as the institutional aspect here, and the ability of the no pain act to provide a tailwind.

vonnie: let's move on to some of the companies reporting later in the week, specifically biogen which is down 41% year-over-year. health care in general has not been doing well but what is the market getting wrong about this particular company since you seem to think that the correct valuation should be at least twice that price? salveen: i think the market has looked at this company and is trying to understand where growth is coming from in the near term, so the drug they are focused on is approved for alzheimer's disease and wanting to see a better inflection of growth. they will be looking at the sales outlook in the context of the overall business but then also the ability of them and the willingness they have to go out and purchase assets to be able to accelerate growth here. vonnie: the health care segment of the s&p 500 is only up 1.2% year-over-year.

a lot of health care investors out there are pulling their hair out a little bit. do you see any improvement in the next year or two under the trump of administration for the sector? salveen: i think right now there are a couple of dynamics that need to be figured out. we are at kind of peak health care policy uncertainty, so we need to have a better understanding. i think many of these larger companies are facing loe's and understanding the sustainability of these models in the context of their own r&d pipeline as well as the ability to do bd is important as well as seeing those earnings numbers after over a three plus year revision cycle start to drop and inflect. for the larger names, that is where the focus is. there is always a relative basis for other groups out there, but i think we need to see strong earnings, we need to see growth and then we need to get some clarity on health care policy.

vonnie: and what are your thoughts on what if anything these companies reported would say about ai? are they obliged to say something about ai? salveen: they've been talking about ai where they need to. we've had competition a biology for a while now. the understanding of how companies are bringing this into their infrastructure, some companies might mention it like moderna has talked about it in the context of manufacturing. others are more quiet on it. i would not say they feel obliged but they are all watching it and bringing it into their processes in some way. vonnie: thank you so much for joining us, salveen richter, u.s. biotech technology leader at goldman sachs. coming up, steel stocks open up higher after president trump announced tariffs targeting foreign imports within the sector. we will tell you what we know and how this compares to a similar move trump made in 2018.

this is bloomberg. ♪

vonnie: this is bloomberg markets. more stocks moving today. nucor, steel dynamics, all trading much higher after president trump said he plans to impose 25% tariffs on all u.s. imports of steel and aluminum. for more we are joined by jojo who covers steel for bloomberg news. why is this a good thing for the united states? joe: it is a good thing for u.s. steelmakers who got off of their worst year since 2018. they were getting crushed by lower demand, largely construction because interest rates were so high. now they will get a nice boost. you are talking about a pretty low bottom for the stocks we have seen for the prices of steel as well, and by bringing

in these tariffs it will add at least $150 per ton to price which is good for profitability for the steelmakers. as for the u.s. as a whole, this will be more costly for consumers. vonnie: for sure. futures contracts already pricing in these tariffs. might there be exemptions? i know south korea is looking for one and australia is looking for one. joe: it's going to be a conversation. donald trump said on air force one that he is going to implement this tariff on all imports of steel and aluminum. but we saw the last time around was after he implemented them in march of 2018, he ended up doing these bilateral negotiations with canada, mexico, the eu, and others in which he gave certain exemptions or tariff rate quotas. there is a sense that on some level he will do something similar. vonnie: if they are enacted, how long before we see flows around the world shift? joe: it is a great question but

i think it is unclear because we don't know exactly when he is going to implement these tariffs. last week when he said he was going to do on mexico and canada, actual suppliers in the markets that we don't know if this is going to hit our imports until tuesday never came because he pulled back. i think right now there is far too much uncertainty in the market, especially how the president is coming out and making these announcements and then pulling back on them. vonnie: put it into context for us, if you look at futures contracts on aluminum and company stock prices, are we around where we are in 2018? joe: in terms of premium on aluminum, we are getting closer to those numbers. in terms of price of the stocks, i would have to go back and look at them. you have a lot more new mills that these companies have brought in that are more efficient. vonnie: thank you so much.

the expert on everything steel, aluminum and more. i am vonnie quinn. that does it for bloomberg markets. balance of power is next. this is bloomberg. ♪ feeling under the weather after the big game? you need a dose of comedy. or a feel-good movie. maybe some reality tv. at xfinity we know what we need for sick monday. extra-strength wifi built for streaming, so you can make the most of your “sick” monday. stream all day with xfinity streamsaver. get netflix, apple tv+, and peacock for just $15 a month. and learn how xfinity rewards members can get a food delivery gift card when they add streamsaver. bring on the good stuff.

>> from the world of politics to the world of business, this is "balance of power."

live from washington, d.c. >> it's tariff time again. welcome to the fastest show in politics, assist president trump moves to add 25 percent percent levies on all imports of steel and aluminum. he's about to sign some e.o.'s in the oval office. we still have a lot of questions. markets don't seem to be too bothered, because we still have to fill in a lot of blanks. kailey: when the tariffs were going to go into effect, then pulledback, last week with had a threat of levies. those were delayed for a month. so will the steel and aluminum tariffs actually have to come to fruition? it's also not clear how wide in scope this i