>> good morning, this is "bloomberg daybreak: europe." i am lizzy burden and these are the stories that that your agenda. asian stocks gain as president

trump and president putin agree to talks to end the war in ukraine. european officials were not warned about the phone call. jay powell warns congress there is still more work to do to bring tenuous inflation after core consumer prices saw the biggest monthly increase since march. we will get jobs in ppi data later today. japanese media report honda and nissan are two scrap talks as both carmakers reported results. we will bring you earnings from europe. lizzy: welcome to the program. breaking earnings from siemens. first quarter of the profit coming in it to .5 2 billion euros -- 2.52 billion euros.

we can go straight to an interview with the ceo. >> we had a strong, promising start in q1. growth was up 3% driven by health, smart for and mobility. on the other side, we saw an order intake growth by 6% and our automation business was up 6%. that is promising that we get more momentum. net cash flow and income was up 50%. we keep our guidance for the full fiscal year, so we are quite happy.

it is not only data centers, it is the whole sector still growing, and for automation we see signs of recovery. we had a high stock that we are building down. we were coming from 14 weeks and now we are down to 9.5%. momentum is coming. we see an increase in the demand for semiconductors, electronics, aerospace, also chemicals picking up, which is a leading indicator, so we are quite positive. we have to look for another quarter for a clearer sign, but moving at the right direction. lizzy: that was the siemens ceo, and we can see in germany, because we have more earnings out of commerzbank crossing the terminal as well. really needing to pull out all the stops to fend off

unicredit's unwelcome takeover bid. they are an optical complain to substantially let profitability over the coming years and say this year preparatory to decline to 2.4 billion euros. european banks having to contend with the pressure of ecb read god's, but you are looking at -- rate cuts, but you are looking at the latest profit. we will be speaking to the ceo joining opening trade after 7:00 a.m. london time. we also have earnings out of nestle, a coffee and cocoa because and nestle saying it sees 2025 underlying trading operating marginat least 16%.

1.5% growth more than the estimate. all the debt secured 300 million friends of savings and organic revenue of 2.2% growth up from an estimate of 2.04%, so i be there. there are some of the first earnings we are getting in this hour, but we can check in on the broader market, as it is a busy day for earnings and geopolitics. earnings pointing higher on both sides of the atlantic. u.s. and russia talking and the talk spurring expectations were an end to the war. traders focusing on the prospect of peace end as well the momentum in china tech, to the msci asia pacific index up 1.3%.

the dollar has been on a roller coaster ride in the past 24 hours jumping up the cpi print out on these bets have higher rates for longer and powell think the fed needs to do more to tame inflation but the dollar paring gains. 1.04 handle boosted by the prospect of peace. 10-year treasury yield said 4.6%, and brent at $74 dollars per barrel. down because of the trump-boudin -- putin talks. we are not sure if get we can dive into the one of them. president trump sankey agreed in a phone call with the russian president vladimir putin to start negotiating an end to the work. it reverses four years of policy on the complex with european

officials getting the wood events warning. mr. trump: meetings with the russian president are being planned. pres. trump: i will be dealing with president putin largely on the phone, and we largely expect to meet. we expect people come here, and i will go there, and we will meet will be in saudi arabia at the first time and see if we can get something done. we want to end that war. that war is a disaster. lizzy: let's get more from henry meyer. give us more of a readout of the skull between the two readers, because a bit of a divergence. >> this is a key moment in trump's efforts to end the war in ukraine. this was one of his main campaign promises that he made in advance of his election, and we know that there has been contact between putin and trump

prior to this call, but this is obviously going to be the official start of negotiations. trump and boudin -- putin avoided senior conversations. one of them on the american side is a close ally of trump who flew to russia on tuesday to secure the freedom of a u.s. citizen who was held in russia. that is an important conclusion. i think this is somebody who has shown in the middle east at a boy in russia. he will be involved in to end the war, and the next step we was a guess president trump mentioned as they are trying to put a meaning together in saudi arabia, which would be a summit between u.s. and russia. they have a lot of groundwork to cover before then to reach an agreement. lizzy: this is fundamental that

trump called putin before zelenskyy. how fast will this move? >> the trump administration is set an ambitious goal of finding a solution within the first 100 days of the new administration. he clearly is in a hurry. trump is threatening to impose sanctions on russia if putin does not come to a deal soon, but there are thorny issues. the hardest one of the security guarantees that will have to be offered to ukraine if it is going to sign up to a deal, which we expect will involve surrendering control of territory. it will want to have some fairly strong guarantees that if russia attacks again that it will be protected. lizzy: henry meyer with the

latest on those stocks. we thank you. meanwhile in ukraine u.s. secretary of treasury scott bessent presented something to president zelenskyy to ensure continuous support. we have had treasury secretary scott bessent presenting this agreement, but what is actually in it and what is been the ukrainian response? >> this is coming at the backdrop of years of age and military aid, from the dosimeter ration the joe biden to the name people in war effort against russia. this is also inclusive of loan forgiveness that joe biden had tried to push their when his last days in office as well. these are all things that the trump administration it is very much against, and this is where the academic partnership is very crucial here, because not only do they want to end the war to release up the extra aid in funding that is coming from u.s.

taxpayers to ukraine, they also went to get in on some of the critical minerals. trump is a transactional leader asking about working to get resources to build a manufacturing growth. ukraine does add value there, especially when it comes to the likes of critical minerals, and that is the kind of partnership scott bessent is eyeing. other pieces include some kind of an investment scheme. at the reconstruction narrative showing up in exchange for trade. lizzy: the eu trade chief talking to trump's team about finding some sort of solution when it comes to tariffs. >> it is interesting, because we know the eu has been raising for what comes next from donald trump. the issue that you start to seek is what can they offer in return ? lng was of a piece of that. we will hold off on the steel tariffs and buy more natural

gas. not only does europe need those commodities, but the u.s. is willing to export them, as this ex libris are crucial. tech related vision -- regulation has predicable. how can less regulation playoff that carried carriage versus stick approach in the united states? those conversations arrive pick up as needed defense finding a started to get hold of the site as well, so these are all the kind of things they have been talking about and turned the european response to the u.s. . lizzy: we will be back with you in these stories, but i went to check in on the currency reaction to these trump-putin talks. euro and yuan jumping on the talks. china offering to play peacemaker role. in the case of the yuan they

says the knee-jerk reaction that can unravel fundamentally. the hot u.s. cpi print points the chance of more than one fed cut is in doubt. coming in on the terminal, we have the news that alibaba shares have extended their gains to 9.1 percent in hong kong, the highest since 2022. this surge boosted by this frenzy over chinese ai, with a turning alibaba into an investor favorite again and injecting new life into the e-commerce giant when it had sunk into obscurity, so in a exciting moment for alibaba in hong kong now up 8.8%, so keep an eye on those shares.

let's leave you with what else we have coming up. at the top of the hour we will get you kate gdp numbers from the office of financial statistics. a drop, so not with gentle array to raise with my given that her top nation's economic growth. at 1:30 london time we would get more data on the u.s., jobless claims data expected to hover around historically low levels. 5:00 p.m. london time, europe's turn, ecb speaker nagel in the context of the ecb debate unaware they should settle, is for and determine election. lots coming up, and you can get a roundup of the stories and all you need to know by going to the daybreak newsletter, da why bigo on the terminal -- dayb go. we will have more on the hot

u.s. cpi report and chairman jay powell's testimony before congress coming up. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe." u.s. micro, inflation picking up

bradley for the render coating chances of multiple predicates this year. fed chair jay powell says the central bank has made substantial progress toward deming inflation, but there is still more work to do. >> we are close but that they on inflation. we have made great progress toward 2%. last year inflation was 2.6%. we are not quite there yet, so we went to key policy restrictive for now. research over many years in many jurisdictions show some degree of independence is important in keeping inflation under control. hindsight suggested it would have been good if we are tightened earlier. since he would no longer be borrowing on the credit of the united states, fannie and freddie would be privately funded. there were not be any federal agency that can examine banks above $10 million. lizzy: that was jerome powell on

the inflation status. get more from valerie. >> he said some interesting comments want to come to the functioning of the treasury market, backing loser banking capital rules in order that with the editing of the treasury market, saying we need to work on the treasury market structure . a part of that could be producing a supplemental leverage ratio. that would help banks hold more treasuries on the balance sheet without being punished and their leverage ratios for that. we saw a jump in swap spreads on this, meaning there is more demand for cash treasuries as banks will be able to hold more of them on the balance sheet. however, a lot of the treasury market reaction yesterday was due to the hot cpi print. if you take a look at the court to be on month on the figure, that is the hardest meeting we have had in his reading since march of last year. the first 0.4 we have gotten. at best is sent to the market to present expectations for a fed rate cut all the way until

december, so we could have a set on hold for much of this year. now, bloomberg economics has noted that this jump in inflation has been due to other things, seasonal factors, for instance. this is been the third january in a row that we have had a hot cpi print, but there was a lot of pain in the treasury market. there was a near nine basis point rise in the 10 year yield as a expects now that the fed will be on pause until december. lizzy: valerie with the choppy session opposed, the cpi print. we have plenty more coming up. this is bloomberg. ♪ (♪♪) ♪ three little birds ♪ ♪ (steel drums playing lightly) ♪ (♪♪) (♪♪) (♪♪)

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lizzy: welcome back to "bloomberg daybreak: europe."

it is a busy running for earnings. we've had siemens results, revenue rising on demand for electrification products, pressing higher profit and backing their outlook. oliver crook has been sitting down with the ceo roland busch. >> use of this growth also in the last quarter, the last year. this is growth driven by smart infrastructure. smart of the structure has a strong foothold in the united states. building technology, any kind of equipment, services, but also electrification. we invested in our capacity in the united states for electrification. also, any kind of products that go into data centers, safety, automation, so we see a strong folder. software, the business in the united states is growing through again strongly by 15%, so

therefore we have a strong software business. we had invested $70 billion into alter. this is a growth momentum that comes in at the right time with a strong footprint on what he thousand -- 40,000 in the united states. that should give us momentum of the years to come. >> i would like to give you best get a reaction from the terror affection. obviously aluminum and steel and this could expand to other divisions. what impact will be on siemens and how is it affecting your strategy and how you were looking at this year? >> so i think the biggest impact is any kind of trade restrictions. they ultimately result in a higher inflation first and foremost. for siemens, we are a local

company with a global footprint. i talked about the united states. i cannot say the same for india and china. we have 30,000 people there and local manufacturing and all places. we would see an impact but not that strong. it is more about how it is impacting the market in total. what happens is since customers see higher tariffs, they reallocate their value added, so we believe that could be a tailwind for siemens, because if you want to build a new plant and you do not want to build it in a point where you have high cost labor, you want to automate and digitize this plant as much as you can, and if you look at an answer to that, come to siemens. we are leading in industrial software, but also industrial ai. we get a ramp-up fully automated. very good examples with our

industrial copilot. we are reshaping the way you automate, so it is a lot of technology that can help you. >> i would like to get your insight in what you were seeing in the chinese market. we have been talking about waiting for this recovery in china. do you think this will be more stagnation for this year, 2025? >> so we do see a sign there. we see electronics semiconductors, medical industry -- chemical industry, which is a leading industry that shows promise. in particular, automotive industry where other places are not. the government is taking actions. they want to bring the confidence of the people back and of trichet action in order to get life into the construction sector. and i believe the story about

deepseek is putting self-confidence in people's minds, so therefore demand will come back. the government is taking actions. it is not a kickstart, but to see the economy is picking up meant to him and particular in the space we are, which is the investment space. lizzy: that was the zeman ceo's -- siemens ceo speaking to oliver crook. meanwhile, at 7:00 london time, the latest u.k. gdp numbers. economists expecting a 0.1% drop after a stagnant third quarter, because it could put the u.k. back on recession this is crucial. you can see that you care. i reporters got a hands on the copy for the office of budget responsibility first draft of

its updated growth outlook. another downgrade there, all of which is bad news for rachel reeves, because she has just announced a raft of measures to boost growth. they will not materialize for decades. growth, the government's top priority. part of what weighed on growth was her gloomy messaging after the election last year and most importantly weak growth impacts are headroom, and if she runs out of that she will have to cut spending given that she has ruled out more tax rises and breaking her fiscal rules. we will get back to geopolitics, trump setting his sights on stopping the war in ukraine.

>> in a very good morning this is daybreak europe and i'm lizzy burden in london and these are the stories that set your agenda. trump and putin agree to end the war in ukraine. jay powell warns congress there is more work to bring down inflation. consumer prices saw the biggest increase since march. ppi data later today and honder and nissan report results. earnings from europe. welcome to an extremely busy thursday in the and geopolitics. futures are higher on the

expectations of the war of ukraine ending, asian markets looking past the hotter print on the prospect of peace, cross asset picture, the dollar is on a roller coaster ride because of higher rates, we pared gains and now euro-dollar is of half of 1% because of the prospect of peace. looking ahead to u.k. gdp at the top of the hour, treasury geertz -- yields and oil are down, down 8/10 of 1% because the prospect of peace could ease concerns so no shortage of catalysts this morning, let's get into alibaba removes.

individual stock currently higher six point 9% pairing earlier gains it was up 9.1 percent at its highest since 2022 but in context but is up but still down from the peak, so the frenzy over chinese ai, putting a bit of life into e-commerce. soaking -- sunken into obscurity in a reversal of fortunes for alibaba. we also in asia have a earnings from honda and the board

approved ending merger talks, we have the news of their earnings at 397 .3 billion yen, estimate was four hundred 6.9 billion so they missed operating income, expecting the briefing on that, it has been put off the table for now officially, nissan calling off talks to combine but continuing talks on strategic partnership facing the trump tariff thread. shares are down 8.5% year to date. president trump agreed with

vladimir putin to negotiate the ending of the war in ukraine reversing three years of u.s. policy with european officials getting no advance warning. meetings with the russian president are planned. trump: i'll be dealing with president putin and we expect to meet, we expect he will come here and i will go there and also in saudi arabia to see if we can get something done but the war is a disaster. lizzie: let's bring in all of her crook, seems like a fundamental moment but what do we know? oliver: president trump is

moving fast, there is a call with putin of russia breaking with the last several years from u.s. policy in european policy and getting things moving, we knew this would be a more pragmatic approach at the same time is pete hegseth is in europe and scott bessent is in ukraine to discuss economic cooperation. for scott what trump does is leave the door open to support ukraine or ramp it up. they want to get paid back so how? mineral deposits and economic ties. from defense in brussels pete hegseth spoke, we don't have trump's plan but we got contours

from the defense secretary. pete: the united states does not believe nato membership is realistic for a settlement. any guarantee must be backed by european and non-european troops as part of any guarantee there will not be u.s. troops deployed to ukraine. oliver: there you get no u.s. troops as a defense force, wanting the burden to shift to europeans but kept saying realistic. this is moving away from principles into pragmatics of getting it done. tom: how is it being seen in

europe? capitulation to putin? >> that is one concern that we keep hearing. no decision about ukraine without ukraine has been the conversation and trump sees this as between himself and vladimir putin but no decision without ukraine perhaps but it seems like there will be without europeans, they are not briefed on the calls for in the room so munich security conference is where we will have high-level meetings. jd vance is here, marco rubio, keith kellogg.

how much input will europeans get or will they be told what trump is thinking. it is awkward, the u.s. is expecting a lot in terms of paying for security and peacekeeping after a cease-fire deal very difficult to sell. i spoke in germany and they are reluctant to commit. lizzie: oliver crook bringing the threads together. we thank you and let's get back to the earnings story. difficult conditions for the entire market will continue

after europe's tire manufacturer imports sales volume down. i can speak to michelin's ceo from paris. take us through the results. guests: thank you for having me. very robust results show that overall revenue went down but we are stabilizing our margin and recorded the second largest cash flow to billion euro. given the market it is a it --

it is a -- it is a remarkable performance. >> how are trump's tariffs affecting you? >> for the time being there is no tariff. michelin employed 20,000 employees in the u.s. with 35 factories. in roughly 70% that we are selling in usa are produced in usa. we have factories in the u.s. producing tires that are exported canada, there in the

u.s.. >> he talked about investing more in the u.s. to counter tariffs. can you -- can you give us more detail? >> oh, uh, i wish you did not say it would be at the expense of european investments. energy cost, labor cost, plus it is difficult to export from europe and in u.s. we have very large operations. investing to maneuver our tools in north america maybe we will

prioritize some project in the u.s., mexico or canada but not at the expense of europe. lizzie: so difficult to export from europe but within europe what is the demand for electric vehicles? >> the market, the market last year was stable in europe, overall passenger car market grew by 7% in we have been experimenting in europe, segments were down at the expense of electric vehicles because of the cost as well as

what kind of vehicle they should buy. it triggers difficulties. lizzie: ok. mmm. really good to talk to, eve chapeau, we thank you. wall street banks plan to expand crypto offerings, the managing partner from venture capital firm still mark, stay with us for that. this is bloomberg.

>> steele: it would benefit from a framework addressing risk. it should allow banks to issue stablecoins and consider regulation. lizzie: christopher waller speaking and big banks are ramping up involvement as banks

bet trump's crypto policy will lead to sales. we talk with a from still mark. you heard the comments there, stablecoins maintain and expand the role of the doll, what do you make of it? guest: that is correct. significant announcements for stablecoin in crypto, tether plan to launch via the lightning labs portfolio and the protocol

was made possible within up upgrade. lizzie: we've seen an about on ukraine, also trump is embracing crypto in a way biden did not. what would you like to see? guest: clarity is overdue in the bitcoin field and integrity is important, stability benefits startups correlated with bitcoin price. as i said bitcoin has momentum

and several forces behind that, transition of tether and soon bitcoin in the bitcoin lightning network is significant, four hundred million users worldwide used tether for transactions. for new users accessing stablecoins they will benefit with instant settlement time and low fees.

fees can be over $10 but hire based on activity. with lightning instant settlement costs one fraction of one sent. lizzie: if i can -- i just wanted to say given uncertainty we are seeing a lackluster run, not at the hundred thousand dollar mark, what will get it passed that again? guest: that reflects the importance of the broader economy, stability, general stability and regulatory bodies,

that translates and affects bitcoin of course. the price is up even though we have seen stability bitcoin has been strong and the ramifications of clarity are not just important for bitcoin but also for adoption. we've seen that in enterprise adoption. lizzie: yeah, yeah. always good to talk to you, we thank you. do stay with us, this is

bloomberg.

>> the -- the -- the even with fine tuning so we -- we -- we -- we are in the final stages of round three, so pretty -- pretty soon. i think the evidence is there, openai has at least a -- sort of -- nonprofit role. and -- and -- and -- and uh, it

seems to be going too far. lizzie: that was elon musk discussing openai. joumanna joins us now, what else could elon musk have to say? joumanna: conversation between elon musk virtually in the summit and the ai minister. they spoke about doge and reduction of the size of u.s. agencies and he said we need to delete entire agencies and many of them. some comments about openai about the bid they put in, what he said was openai shifted away

from its origins, moved away from that and we like to see a return to what it was. tom mackenzie spoke to sam altman and they rejected the bid from elon musk. interesting to hear from muska. lizzie: yeah, yeah, yeah. the opening trade is next. this is bloomberg. a sleep number® smart bed is perfect for couples the climate360® smart bed is the only bed that cools and warms on each side and all our smart beds adjust the firmness for each of you. and now, save 50% on the new sleep number® limited edition smart bed. shop a sleep number® store near you.

anna: good morning, i'm anna edwards alongside guy johnson. here's what you need to know