tom: [indiscernible] these are the stories that set your agenda. nvidia fails to meet

expectations as it rules out an anticipated chip. trump gives conflicting answers in the chancellor says britain can boost trade with the u.s.. ukraine's president arrives on friday, we preview those meetings. so yes we have more trump tariff confusion and a catalyst did beat earnings and sales also

higher so we work through that story for you as well, reaction to trump tariff impact as well. we will be hearing from the chancellor, nasdaq futures looking up. treasuries yesterday, yields were lower. still below 430 on the 10 year, euro-dollar softer, brent crude

up at 72.76. the yellow metal is steady. avril is standing by with the asian market deep dive. >> stocks declining after hang seng rallied at one point and then joined the declines, with the tariff confusion we will watch out next week, something that could help the momentum is china's meeting of top leaders, and and a news, what these declines tell you is that decoupling narrative may be

taking a hit. you are looking at the blue bug asian pacific, it's been down all of this week. >> sk hynix makes high-bandwidth chips alongside nvidia gpu's. avril hong with the reaction, we will do a deep dive now, the ai darling delivered good but not great numbers. the company's mixed outlook

comes amid concerns about ai. >> blackwell will be incredible. tom: let's bring in matt from bloomberg intelligence. this is another example of expectations set too high. >> they -- they -- they -- they

beat and we are used to big beats, it was in line so expectations were more muted because of deepseek, you know what i mean? still seeing people looking for where the surprise is going to come from. the gross margin did not come through, talking about low 70's or mid 70's, out of line with consensus. tom: they're -- they're -- there

is the spend, strong demand for the blackwell chip and it's hard to point to one sector. >> 29 times earnings, so not above the average. there is a huge investment in genai creating incremental revenue. the jury is out, lots of questions this year, you will

start to see the peak. tom: maybe we finally get an answer to -- to -- to -- to -- to -- to that question. that, thank you on the crucial story. answers about a cabinet meeting about enacting tariffs, president trump said he will impose 25% tariffs quote very soon and he took aim at the block. trump: we will be announcing it soon and it will be the 25% generally speaking and it will be on cars and all of the things. the european union is different, they do not accept our cars,

they use all sorts of reasons why not and we have a deficit with the countries of europe, pretty directly the countries of europe -- all the countries are all different, but the european union was formed to screw the united states. the european union was formed to screw the united states, that is the purpose. tom: there you go. for more let's bring in kriti gupter on how we think about tariffs and mixed messages, all

sorts of plans about the size, the scale. kriti : they are competing with ford and gm so there is incentive from a political point of view despite americans not buying european cars, tariffs are another one that has been frozen for two years or so so aluminum and steel tariffs can be renegotiated because the steel and aluminum is struggling so

tariffs could help create business. those are some references he is making. novo nordisk for example gets a good chunk of revenue. tom: i like that you were clear about autos in steel. comments around my eu to paraphrase trump, it was structured to screw the united states.

he is taking his anger out on the european union. guest: they are treading with an abundance of caution is the lessons. claudia sheinbaum or justin trudeau said the eu will react to barriers to free trade that are unjustified. previous rhetoric from trump he talked about levees, vat as well so that is another way this could go. tom: cutting through the smoke and mirrors, thank you. let's bring in valerie tytel,

talk to us about market reaction. valerie: equities posted declines in the new round of strong language for the european union and we saw euro stocks futures drop 1% and traded softly in asia and there was softness, euro-dollar declined but not as pronounced, faring down half a percent but we fail to sustain 105, really failed to sustain above that -- that level. bloomberg analyzed blanket tariffs for the eu, it could be

1.5 percent with germany affected but they see 70% decline in exports with autos and industrials, pharmaceuticals and meds affected. tom: bloomberg's valerie, indeed. coming up financial sector and axis ceo thomas after the french company announced a share buyback. stock is about, that conversation is next. this is bloomberg.

tom: welcome back, french insurer abating on its story, 8 million euros above estimates,

the company announcing buybacks and raising its dividend. the ceo thomas burble, let's get your reactions. what was driving the upside? thomas: these are record earnings, never seen such a record profit. when you look underneath geographies performed well in this is the fruit of the world over the last 10 years, auto sectors have the highest demand in the grow the most.

tom: a share buyback in total of 3.8 billion euros. about 5 billion in -- in total buybacks, could -- could -- could investors expect more going forward? buberl: so these two buybacks are from two different sources, we have a payback of 75%. then you have the 3.8 billion which you mentioned, most likely toward the summer of this year, these numbers are what investors should expect.

tom: 100 million euros of losses expected, why are you confident that is the final number? buberl: when we estimate we work with satellite imaging maybe even on the high side. for us this is low compared to competitors which shows we have a selective way of picking our risk exposure and being diversified. tom: given the climate crisis are there more parts of the weld -- world that are becoming uninsurable? buberl: what we see is frequency

is increasing fires, droughts, floods, smaller local events that we have not seen before hand, yes, this will continue to rise. will it be uninsurable? no. if you take hurricane katrina, versus irma, they have the same trajectory. costs have doubled. so if you ensure there are less claims it means the government and individuals need to contribute. tom: premiums will -- will rise? buberl: is risks rise in

occurrences rise, premiums will rise. how do you dampen the rise of the cost? we have proved it works. tom: what is your ex -- expectation around -- around pricing in additional cuts this year? buberl: look, our business is -- is driven by technical results, we are one of the largest insurers worldwide. we focus on technical risks. higher and lower interest rates,

since we are a long-term investor i don't think they have a big impact on our results. tom: ok. still in the market for acquisitions? buberl: look, 2024 has been a record year. this has been done in an organic way. we don't need to look at acquisitions urgently. if opportunities present themselves we will look at them, but we're not spending the day looking at them. tom: ok. thomas, really appreciate the time, thomas burble, thank you. u.k.'s special relationship with the u.s. is in focus as the prime minister heads to washington. the details later, this is bloomberg.

>> welcome back, we have breaking news and energy on oil, eni signing up for a joint venture with petronas in india and malaysia, 3 billion barrels of oil and reserves. jv set up between enis and petronas, so we will watch that at the open. eni in italy.

trump plans to revoke chevron's license in venezuela, torpedoing slow economic recovery. he referred to an agreement from 2022. despite sanctions, chevron would have a six month time to wind down in the country. nissan is drawing plans to replace their chief executive following dismal earnings. they are gauging interest in candidates to succeed the ceo. the founders of ben and jerry's expressed interest in buying back their brand from unilever. they have held discussions to partner with socially minded

investors and are on track to separate the ice cream business. president trump threatens tariffs, we are live in cape town speaking to the spanish economy minister. his reaction is coming up. this is bloomberg. the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives.

it brings people together in meaningful ways.

>> good morning, this is

bloomberg, i'm tom mackenzie and these are the stories that site your agenda. toyota stocks fall, nvidia fails to meet expectations as it rolls out black weld chips. trump gives conflicting answers about levees but u.k. chancellor says england can boost trade with the u.s. as leaders make their way to the white house. ukraine's president expected on friday. talking about earnings from the defense company in germany, stock is up 47%.

you are looking at soft margins in 2025. revenue is slightly below the estimates, softer outlook on margins as well. strong run-up year to date up a little over 4%, we are also watching defense companies as nations commit to defense spending. broader market check, trumps

tariff confusion as sk hynix in asia takes ahead on an earnings story that was not good enough. questions about how sustained demand for blackwell will be and european futures lower, ftse futures off by one tenant. nasdaq looking to add 101 points despite disappointment around nvidia. big moves in treasuries, yields are up below 430, euro-dollar at 104, brent crude getting a lift and gold below 2900 per ounce on the yellow metal. down in the session.

lies from eni and petronas, we have earnings and breaking news is adjusted net came in below estimates, a miss, estimates had been just shy of one billion euros, aop above estimates. in terms of operating profit it was a mess. that is a stock to watch. central bankers steered the

economy through market meltdowns, recessions and a pandemic ponder how to deal with trump's tariffs. jennifer zabasajja is standing by. jennifer: i'm standing by with carlos, it is great to have you. before we get into that defense money is the topic for europe, do you think you will achieve funding? >> discussions have evolved and in europe we have to strengthen capabilities to the defense

industry and have a two leg approach. there has to be a joint approach so there needs to be a common approach and we are making direction -- making progress. jennifer: have you spoke with your counterparts during these talks? carlos: we had a meeting on these issues, a pivotal moment and we will face the funding cap and there are efforts on the domestic front.

jennifer: we will see that within the next few months, an agreement? >> i expect we can rally and have a positive conclusion. jennifer: tariffs are a concern, when you think about spain in the eu how concerned are you about this getting in the way of growth? >> on tariffs we have to be prudent, constructive but not naïve. that is a quick summary and let's see how different announcements materialize and in the weeks we have we need to negotiate to get to a beneficial

agreement. we do not engage in protectionist measures, we have the greatest relationship so that is what we should maintain, but europe if there is unfair tariffs imposed we need to be ready. we have instruments and europe has to be constructive. jennifer: our reciprocal tariffs off the table? >> we need to wait and negotiate. as we have said we need to promote strengthening of the relationship. goods and services is the

greatest relationship and we want to engage constructively. we should put all of our efforts and we have the ability to respond. jennifer: have you spoken to your u.s. counterpart? carlos: we are ready to talk with him in the next few months and we engage with the u.s. authorities so that is the way forward and we have homework to do to integrate ourselves, in terms of goods trade this is the equivalent of reducing tariffs and services would be reduced so we need to do our homework in

the eu. jennifer: people wonder whether the retreat of the u.s. opens up opportunity for other players so do you see the european union the gap that fills the gap -- or do you see other players stepping in? carlos: the eu has a drive toward multilateralism and we will continue actually hanging on to this and helping out if there is need to fill any gap. jennifer: does that mean investment? carlos: we are looking at different ways to do it, looking at debt, half of the countries are in distress or in danger of it so we need to engage and look

at further financing. we in spain will have financing for development in june to foster debt relief and financing. jennifer: engagements have started. we have to leave it there. that was carlos the spanish economy minister at the g20. tom? tom: another timely interview indeed. more guests indeed from the g20 today. at 8:15 a.m. we speak with one of the biggest investment managers ceos. u.k. chancellor called on

countries to defend against russia and's they can boost trade even in the face of terrorist threats with the u.s.. >> a fully funded plan to take defense spending to 2.5% gdp and improve security to make us stronger. >> you increased defense spending, do we hope for anything in return? >> with increased defense spending to improve security the prime minister will meet president trump but is important that we increase defense spending.

to play our part and keep europe safe against russian aggression. in terms of future trade last time president trump was in the white house trade increased and that could happen again and i know the prime minister looks forward to talking with donald trump. tom: ok. rachel reeves speaking on the ground that the g20 in cape town. keir starmer will meet with trump to die -- today. this is a crucial meeting, how do you expect it to play out? >> the relationship depends on the meeting, the most important

since world war ii, that is how keir starmer is framing it. to donald trump he will be talking about why trump needs europe to be the winner so if he was going to put boots on the ground he will need the u.s. to provide air support and intelligence to back that oop -- up. to lay the groundwork, keir starmer said a timeline, 3% defense spending coming out of the aid budget, quite a trumpian move. there has not been much reaction and i am wondering whether

donald will say that's not enough. we heard from pete hegseth on x, saying this is a good step. will trump say we need more steps? tom: this is one reason this will be pivotal. indeed, a preview of the meeting. coming up, a german start of the claims to have designed the first integrated commercial nuclear fusion power plant concept with huge implications. stay with us. this is bloomberg.

(♪♪) you go to beaches so your kids will be entertained... mom, look! ...by the caribbean. (♪♪) tom: ursula vendor lien met with

leaders to boost competitiveness in up greek overhaul as a german start up claims to have designed the first concept for a commercial fusion power plant providing limitless energy. francesco joins me, talk to me about this breakthrough and the implications? >> we announced the world's first conceptual design for a fusion power plant at record time. we have a path, the way to fusion is clear and we have to

demonstrate the technology and built on the experiments. tom: you -- you -- you -- you -- you claim this is a breakthrough no one else has achieved? francesco: if you look at the publication it is the integration of physics and engineering, not just the best that one thing, putting the pieces together. tom: what is the potential of nuclear fusion long-term? >> it operates in a stable way, to substitute natural resources moving toward a society where power is associated with

resources, to where technology leads the way to enable human ambition. tom: what is the timeframe? >> this is the concept for the power plant. the target is within 2031 and we need to finish a full-scale, very complicated piece so these are the key dates. in the 20 30's we can get fusion. tom: has increased demand from aai led to excitement, is -- is -- is it underscoring the need for technology? >> absolutely, there is a series

of technology breakthroughs from magnets to computation. that allows us to integrate the design. tom: hey i assisted you? >> that's right. to create training sets and bring this to engineers in one room, ai is part of that to transform this complicated set of magnets. tom: you are a spin out in germany, how well-positioned is europe for you -- nuclear future? >> where we are operating europe is at the forefront, i was able to appreciate the scale of what

we have done. max planck society is a leader in the planet. tom: this is one cutting edge technology where europe is leading? >> yes. there was a clear void of entrepreneurial spirit. saying we can bring these tailwinds together. tom: yep. >> into one team that operates together. tom: you are six years away from getting into the ground, how

much funding do you need? >> this is an ambitious kind of company, we are always looking for partners and we are focused on the full-scale demonstration magnet in 2027. the whole project is targeted in 2031, a one billion scale projects. so all eyes are on technology where europe leads the way, we have to get our act together as a continent on one mission. tom: indeed. what nuclear fusion could mean in terms of energy. cofounder and ceo, plenty more coming up. this is bloomberg.

tom: markets adjusting to nvidia results, not great. they be modestly. a little higher than mid range but you're not getting to the top so mixed -- missed expectations. 39 billion, operating income above estimates. we expectmagin but as a result of the rollout they were weaker than expected. let's flip the board and look at

blackwell, strong demand, that is the chip to watch. it is how much demand there is for blackwell, 11 billion u.s. dollars. revenues doubled and you put just the dater center unit together and that generates more revenues then and tell and amd combined. a little softer on asian results after hours. we watch the impact on nvidia. the opening trade is next. this is bloomberg. ♪

anna: i'm anna edwards alongside guy johnson and kriti gupta. where in hour away from the opening trade. good but not good enough. nvidia fails to meet