good morning. this is bloomberg daybreak europe. i'm tom mckenzie. these are the stories that set your agenda.

tariffs in china, canada and mexico are in place. beijing targets back fighting u.s. food imports. canada also retaliates. president trump pauses all military aid to ukraine. plus sliding further, brent crude trades near a three-month low after opec plus announces a surprise increase in oil output. tom: good morning. it is tuesday. tariffs are now in place. $1.5 trillion of goods affected. 25% on canada and mexico and an additional 20% on china. retal race with from china and canada. this is trade war territory.

does it expand globally? talking of europe, you saw fresh record highs on european equities yesterday driven by the defense spaces. losses being flagged by the european stoxx 50 futures. in the u.k., ftse 100 futures pointing lower by .5%. commodities under pressure as a result. s&p futures pointing to gains of .3% after heavy sellout from wall street yesterday. close to 2% declines on wall street. crushed by trade expectation, tariff expectations and weak economic data out of the u.s a gain of .4% after yesterday. let's have a look across assets. markets pricing in three rate cuts from the federal reserve. almost three rate cuts moves

into treasuries. the bond market rally has taken place now. equities selling off since the trump inauguration. that trump trade pivot is now fro nownsed. the twos and fives are back below 4%. one and four on euro dollar unchanged. brent is $70 a barrel. opec coming through with more barrels on the market coming through china and canada announcing retaliatory measures against u.s. after the trump administration went ahead with those tariffs. 25% tariffs are enforced on all u.s. imports from canada and mexico. tariffs on chinese impoforts have doubled from 10% to 20%. president trump speaking yesterday saying he is going to be dashing hopes of any last-minute reprieve. >> is there any room for canada and mexico to make a deal before

midnight? >> no room left for mexico or canada. the tariffs are all set. they go into effect tomorrow. china also had an additional 10. so it is 10 plus 10. tom: the tariffs target the top three u.s. import sources hitting annual trade worth half a trillion dollars. the total value of goods about $1.5 trillion. brendan murray joins me now with the details. what do we know about the tariffs that have been imposed in the last 30 minutes or so? >> it was five years ago, well, the big surprise was the canada and mexico tariffs. even anticipated he would hit quhien 10%. there was a lot of skepticism in financial markets in particular that he would go through with hitting the north american trading partners with these tariffs. you know, it was only five years ago where donald trump

renegotiated the nafta agreement, called it usmca, said it was a greatest, most balanced, most powerful trading alliance in the world. this was going to help the u.s. stand up to europe, the european union, stand up to china's economic might. this three-country alliance would help do that. now he is sh redding it shreadingit. consumer electric pistonnics. food production flows back and forth. we'll see if this is some sort of gambit he thinks he can bring the three to the negotiating table in a couple of days, if this lasts for weeks or months, we're looking at auto companies shutting down trying to figure out how are they going to make a profit now that 25% tariffs are

going on the cars and the parts that move across these borders. tom: yeah, yale university putting south research suggest it could cost u.s. households an additional $2,000 per year. canada and mexico retaliating. >> they don't have as much of our products to put tariffs on as we do of theirs. so that will certainly hurt. particularly in the border states. but we haven't seen what mexico be l do yet. that will be interesting to see. they promised that they would be more deliberative, have something place to snap into effect the way the canadians and chinese did. certainly we're in the throes of a regional trade war the like of which we haven't seen in a long, long time. the u.s., the average u.s. tariff rate based on all of tho

these that have gone into e expect now the highest since the 1930's. i think we know what happened with tariffs in the 1930's, they prolonged the great depression. we'll see if this gamble pays off. but in the interim economists are predicting there is going to be a lot of economic pain associated with it. tom: tariffs at the highest rate since the 1930's. thank you very much indeed. canada retaliating. china retaliating. mexico still working out their next steps. brendan murray with the details. waking up to the realities of trump tariffs. supply chain disruption that will come about as a result of these tariffs. >> finger on the pulse of the market, doesn't seem like there is much reaction to the actual implementation of these tariffs. that midnight deadline we cross, looking at how s&p futures

fared. they barely budged. maybe we priced all of this in yesterday, that big slide in the s&p 500, the biggest drop of 2025. dropped 1.8% yesterday. unfazed in this tariff implementation. the fx, dollar cac ununfazed. we have strengthed after the headline. the same thing going on with demonstrator mex. yes, the currency weakened yesterday but on the headline of the implementation of these tariffs we have seen the mexican pes ea strengthen. they are going to be on tinder hooks to wait trump's address to congress later tonight. it could rattle the confidence in the equity market. tom: he has been consistent on that. we'll see if he doubles down on this or suggests there is room

for compromise. thank you indeed with the market reaction here to the tariffs that are now in place on canada, mexico and china. let's bring in the asian market reaction. avril? >> interesting moves across asia today. declines of almost 1%. quickly fare losses despite tariffs doubling for china and china responding with retaliatory action. it doesn't really look like what you would expect. chinese stocks actually pared earlier losses, the hang seng tech with gains. maybe also that china's retaliation was not as bad as some expected. traders may be looking ahead to the china stimulus hopes there. one market that seems to be reacting to the start of a trade war is japan leading declines.

selling exacerbated by the yen yesterday. declines in the yen, gains are also being b seen in the are you runhimbi.the stability of the ce curne spivment maybe the idea being dashed that they will allow for deep appreciation to deal with tariffs. i also want to highlight what we have seen in the g10 ape eck currencies. they are moving different directions. you look at these, they tend to move in the same direction. the other thing is the yen is seen as a beneficiary of these tariffs. some of that because of trump's comments but safe haven demand and also the closing yield

differentials given how u.s. yields have moved. tom? tom: safe haven trade when it comes to the japanese yen. china retaliating by imposing tariffs on u.s. soybeans and other farm products. let's bring in our chief kroarnt. steve, what is the late it's in terms of beijing's reaction to these u.s. tariffs? >> we have been out reporting all morning before dawn essentially expecting some sort of countermeasures as the minister of commerce in china, as the business day got started about 9:00. vowed retaliatory measures. we have gotten those measures. as avril said, the market is reading it a little bit more muted. keep in mind the united states buys more than three times more products from china than china buys from the united states so there is not going to be necessarily a like for like on

tariffs but they have added extra tariffs up to 15% on a number of u.s. goods, notably a lot of key crops so we're talking soybeans, sorgum and corn as three major crops where there'll be a 15% tariff added and beef, cotton and fruits facing a 10% tariff. also there is an entities list. we have seen another 10 u.s. firms added to that unreliablentsities list. a mostly defense related u.s. companies. citing arms sales to taiwan as a major reason. they have added an additional 15 companies, mostly defense related companies to the export control list of china. interestingly though tom, one tool that china has used, expert e controls of rare earth and

critical minerals like after the first batch or first salvo of tariffs of 10% we got at the beginning of february. they limited export of tongue ten-based minerals. we saw other key minerals restricted further in sale to the united states. as far as we can see from the readouts it doesn't appear they are using that live now but it doesn't mean they in the future. tom: you're in tiananmen square. you continue to gauge china's reaction to these tariffs. what are you watching for in the days ahead and to what extent the trade front from the u.s. is going to cast a shadow from what transpires from beijing in the days ahead? >> i don't expect the leaders that gather here for the mpc starts tomorrow and the cpcc,

which are gathering this afternoon that's why everyone is here. about to go into the great hall of the people behind me. i don't expect them to necessarily come out and talk directly about the u.s. threat and the u.s. tariffs other than to say that their external environment has become much more challenging. the moves of retaliatory countermeasures taken. but obviously this is an economy here that is struggling to gain footing at a time when the real main pillar of growth has come from exports. those are going to be you aren't threat if a key export destination like to united states is going to be levying 20% tariffs with a threat that possibly could go up to 60 as donald trump promised on the campaign trail. exports are going to be a little bit weak. they need to drive domestic

consumption. there needs to be end markets, viable markets for the products that have been you know, described as industrial overcapacity here. where did they go? they need to go into the local market. you're going to see a lot of policies trying stimulate domestic demand. raising the budget deficit target much higher than 3%, what it is now to upwarsd of 4% possibly. that would be the highest in three decades. they are going to stimulate. the markets have been waiting. you know that every meeting that we have had over the last several months, whether it was the third plenum, the markets didn't get the kind of fiscal stimulus. show me the money. they didn't get it. we'll probably get it tomorrow in the work report in the great hall of the people. tom: reporting from steven engel on the ground for us. retaliating on those u.s.

tariffs. thank you. when you talk about china, you think about the oil markets. the oil markets today under pressure for different reasons obviously. opec plus going to be putting more oil on the markets. oils coming through, a key part of that metric when it comes to opec plus, the top line coming through. currently coming through, full-year operating profit. 774 billion ridge als. slightly below the estimates. it is announcing, has announced it expects to pay a total dividend of $85 billion u.s. dollars in 2025. of course a biggening chunk of that will be going to saudi arabia and the state government itself of course. state lines coming, it is a story we'll bring you more details in the hours ahead. details and lines crossing on the earnings story on a major

defense contractor. this is one of the companies has performed strong year to dates if stock is up about 60% year to date. beating estimates full-year earnings coming in at $2.42 billion above the estimates of $2.3 billion. fourth quarter sales beating and they see 2025 sales up 21.7 billion euros to 21.9 billion euros. that is a beat on the estimate. relatively strong numbers coming through from a defense contractor that has seen a strong runup year to date. on expectations of spending coming through from europe coming up, donald trump halting deliveries of military aid to ukraine following the oval office fallout with volodymyr

zelenskyy. we look for that decision on the war next. this is bloomberg. ♪

tom: donald trump has paused all u.s. military aid to ukraine just days after his oval office bust-up with zelenskyy. it won't be resumed until the u.s. president determines that ukraine's leaders demonstrating a good faith commitment to peace. let's get more details from oliver crook. what does that mean for ukraine and its military operating on the ground. >> from what we understand, there was already a freeze to some of the financing part of usaid. and the delivery of hardware that could be coming and stuff

that is in the air and stuff waiting on the border with poland. all of that stuff is going to be frozen and there is still about $4 billion worth aid that trump inherited from the biden administration and that appears also to be on pause. this is turning the screws, the consequence of what we saw from that press conference that went catastropheically from trump and zelenskyy. we have not heard from trump officially on number we expect to hear from him later when he is going to speak on this about 1:00 u.k. time. it is very hard to know. zelenskyy said he would sign something. trump said he still like the deal. the risk over all of this is for the ukrainians. how do you get an end to the war and trump does not seem willing to give the security guarantees ukraine and the europeans would like. you need to come to a

commonality who is the aggressor and the victim. that does not seem to be clear from the trump side of things. tom: russia was aggressor and invaded ukraine and one is not based on fact. this is another decision by the trump administration that will be cheered in moscow. >> and has been cheered. tom: talk to us about whether or not europe can fill the gap when it comes to military hardware? r >> no. for a short period of time. this is the very beginning, the europeans have given a lot more in terms of monetary volume. they are trying to build up their defense industry as we have been reporting on. we talk about building a new plant for these tanks, these are years in the making. we know there is a lot partnerships going on with some of these defense companies but they don't have the volumes and ability to match what the united states has been filling and further to that, if the united states wants to further turn the

screws, it is not about delivering hardware, it is about withdrawing surveillance cover, withdrawing kind of information. it is withdrawing the maybe updates and the operating of some of this kit you need to have the american know how to basically operate if the field. these are all parts of the equation. they want to turn the screws. they are absolutely able to do that. tom: thank you very much indeed. the story continues to evolve. we'll bring you all the details when we get that and the impact of fighting forces in ukraine as they continue to engage in that conflict and defend their nation. coming up, aramco has cut dividends. we're going to go to dubai for the details on that story. that is next. this is bloomberg. ♪

tom: saudi aramco has the world's biggest dividend in a blow under saudi arabia's widening budget deficit. this is to ease pressure on its own finances. this of course following the decision by opec plus to put more oil on the market. talk to us about the earnings the interlink between these two stories. >> yeah, clearly there is a strong interlink here. what we did get out of these numbers is the profits lift 11% year on year. that points back down to the facts that oil prices are lower. of course saudi arabia are producing less than their full capacity. the key takeaway from the aramco earnings is the guidance on the dividend payments. they have announced they expect the total payout for this year to be about $85 billion. compared to $124 billion last

year. they are reducing the total payout for the dividend. why do i say total payout? the dividend itself is coming prized of a base dividend payment in addition to a performance-linked dividend. that is linked to extra free cash flow. you will remember they had a massive influx of revenues after the 2022 energy crises when oil prices spiked up. on that the back of that they decided to pay out more of this performance-based dividend. now that oil prices are under pressure, they have guided to a lower dividend payout overall for the year which may have effects on the saudi government given that they constitute the largest shareholder of aramco. to tie it back into the broader picture, this comes on the heels of the opec plus announcement yesterday that they are going to start putting more barrels back to the market as they planned from april 1 around 160,000

barrels per day. this came at the surprise of the market. many analysts felt they would once again postpone the decision. they have already postponed it three times. this time around they plan to go ahead with those increase plans, output gradually restoring 2.2 million barrels per day back to the market. the reaction on oil prices has been pretty negative. it comes back to tie it back to what aramco's c.e.o. said. he is saying they expect to see record oil demand this year. and interplay of all of these dynamics. tom: con tration with the iea. an important update on these oil markets and saudi aramco our xfinity network is built for streaming all the stuff people love. how can it get any better? -i'm just spitballin' here, but, what if we offer people apple tv+, netflix and peacock? for one low monthly price. -yes. so, people could stream the shows they love. and we could call it... xfinity streamsaver! mmmmm. what about something like: streamsaver?

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tom: good morning, this is

"bloomberg daybreak europe," i'm tom mackenzie in london. the global trade war escalates. the u.s. introduces tariffs on canada and mexico and doubles them on china, hitting the country's three biggest trade partners. canada and china immediately retaliate with levies. donald trump pauses all military aid to ukraine, turning up the heat on zelenskyy after that testy oval office meeting. brent crude trades near a three happen month low after opec+ announces a surprise increase in oil output. trade firmly in focus for these markets then as we adjust to the reality of an escalating trade war. goods worth about one and a half trillion dollars impacted by 25% tariffs on canada, mexico, and additional 20% tariffs on goods

from china. the retaliation from china and from ottawa. european futures lower 0.8 percent after notching a fresh record high yesterday on the defense trade, ftse 100 futures pointing to losses of 44 points. s&p futures turning more positive after a rout yesterday of 1.7%. the russell 2000 small caps were crushed, the nasdaq 100 tech names took a beating yesterday particularly the likes of nvidia. currently nasdaq 100 futures pointing to gains of 97 points, we will see if that holds as we build to the open in the u.s. markets now pricing close to three cuts from the federal reserve. the data from the u.s. is looking fragile. is u.s. exceptionalism coming to an end? and what will the impact of tariffs be in terms of growth and inflation? brent under pressure on the opec+ decision to put more oil

into this market, down 0.7%. and bitcoin falling again, down 1.4% at 84,000 dollars. china will follow lawsuit at the wto against additional u.s. tariffs. president trump doubling levies on chinese goods. canada retaliating with tariffs which will eventually hit 107 billion dollars of u.s. products. >> we know that this is an existential threat to us. there are thousands of jobs in canada at stake. we have done the work. we are ready should the u.s. decide to launch their trade war. we will be ready. we are not seeking this. tom: canada's foreign minister speaking.

canada has indeed retaliated. let's bring in katya for the latest. a lot of tariffs being announced, what is the latest when it comes to beijing's response? >> beijing's response was very prompt. we got news very shortly after we passed the deadline for when those u.s. tariffs came in. and we know a number of moves they have taken, up to 15% tariffs on agricultural goods. that includes beef, chicken, some fruits. additionally, there will be 10 u.s. entities placed on a special blacklist, china has this blacklist of companies. illumina a major u.s.-based company in the scope of dna genome sequencing has been banned from selling its products in china. there is a range of responses but you will note that china's

response is not at the same level as the u.s. when you compare tony 5% tariffs on chinese goods to up to 15%, as well as the scope of items, we know that all chinese goods coming into the u.s. will be tariffed, but it is not the other way around, so you will see a bit of that which is exactly what happened the first round of 10% tariffs, we saw a more muted response from china. tom: eventually china runs out of goods to actually put tariffs on. what about canada and mexico, their response so far? >> we already knew canada was going to respond. trudeau had said that unless tariffs are pulled back, that they will impose these two trenches, the bigger ones come later in three weeks time. right now 20 billion in goods are being targeted, u.s. goods coming into canada. in mexico we are expecting a press conference with the

president at 7 a.m. local time, so we will get more details about what their strategy is. mexico also said it is looking to protect its industries and will come up with proposals, we just don't know specifics yet. tom: katia on this escalating trade war and the response from canada, mexico and china to these trump tariffs. let's bring in hetal mehta, head of economics research at st. james's place. good morning, thank you for joining us. what does this trade war mean for the global economy? what kind of impact already modeling in terms of the growth impact this year? hetal: we have seen the retaliation, it is clear, it is lose-lose, even before the tariffs have kicked in we saw that trade policy uncertainty skyrocketed.

previously had not breached 100 until donald trump became president his first term is now around 300. huge increase in uncertainty already starting to bear down on sentiment and confidence. in terms of near-term impact, these tariffs, taking the canadian and mexican tariffs, he has taken the effective rate up to above 10%, and the chinese tariffs on top. we're looking at a it to inflation, as in an increase, and that will curb the purchasing power of consumers. you get that effect on the u.s. and then there is the spillover, the retaliation will also mean it is a drag on growth globally. we are looking at a slowdown. i thought the impact of the tariffs would take a while to build. we are starting to see some evidence of the slowdown

already. so this is going to be a long process i think. but there is still a lot of uncertainty though. tom: there is a lot to unpack in terms of impact on inflation and growth. i want to play some sound from the fed officials on the fomc talking about that inflation story in the u.s. and the consumer. let's listen and i will get your reaction. >> deterioration of the labor market alongside higher inflation could present difficult choices. with inflation about 2% and full employment labor market, the states are potentially higher than they would be if inflation were at or below target, and of consumers or businesses had not recently experienced high inflation raising their sensitivity to it. tom: masalem of the fed speaking there. markets now pricing potentially

close to three additional 25 basis point cuts from this federal reserve. does the fed put the emphasis on the growth impact or on the inflation impact? this is a challenging set of decisions for this fed. hetal: stagflation is the nightmare scenario for any central bank. we have got this slowdown in growth, but the inflation numbers are clearly present. i don't think we will see cuts from the fed coming through very quickly. unless there is a further leg down in growth, because for them as we just heard, there is this inflation memory because inflation has been high. it doesn't take much to take expectations of further. wage growth is still relatively robust. so there is that concern of second round effects.

we might get hikes, the bar is high for that, but keeping the talk quite tough is going to be key in the near term. tom: does it kill the u.s. exceptionalism theme? hetal: i'm not sure how much we really bought into the theme anyway. it is obvious the u.s. will have some advantage. it has reserve currency status, it can run big deficits for some time, but i don't think what we are seeing certainly now is a dramatic change for our view. the exceptionalism for me is down to can that fiscal side in any way cushion the impact of tariffs? i think the answer is probably no. u.s. is already running a big deficit, and as the effective

rate goes up, it is not clear it will generate that much extra tariff revenue and the hope was to recycle that in terms of tax cuts. if that does not come through, that will keep that slowdown in train. tom: when it comes to europe, this has to be a warning for leaders that tariffs are likely to be coming down the pipeline. we know to what extent there is animosity when it comes to trump. can ecb cuts provide a cushion for the european economy? hetal: i think in the near term, the cuts from the ecb can help a little bit. but the defense spending i think will take time. these things take time not only to agree but to take effect. the supply chain is quite long in terms of defense spending. that will help eventually.

the other thing about defense spending where a lot of money is coming from alternative vehicles, the idea of in the u.k. money that was going to go towards infrastructure may now go towards defense. this is economically less productive in terms of boosting the output potential, though in years to come it might be hard to quantify near-term, but years to come we may talk about this productivity puzzle. spending money on something that is necessary but will come at the expense of capacity, that infrastructure investment. i think it will help but the second round effects of growth of that stimulus will be more muted. tom: look at the second round effects of that stimulus. hetal mehta, head of it, research at st. james's place, in terms of how the global economy will adjust to this trade war. thank you. breaking numbers when it comes to defense stocks called higher

in trade before the market open. tradegate i should say as we lead up to the u.k. open at 8:00 a.m. hensoldt getting 15% on tradegate versus the xetra close yesterday, bae systems called higher 8.6%, a reminder that defense stocks, that trade continues to have legs after the strong performance of that sector yesterday. further upside on the news that the u.s. administration is halting military aid to ukraine, undoubtedly, an expectation that european defense names will have even greater demand. coming up, our exclusive interview with a global leader in generative ai. we will discuss the challenges facing startups trying to scale the technology and what trends to watch in 2025. that is next. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak europe." they i start up anthropic completed its latest funding make around, raising 3.5 million dollars, that values the openai arrival at 61.5 billion dollars, cementing its place as one of the largest startups in the world. staying on the ai space with a focus on data analytics, i'm pleased to say we can bring in someone focused on the challenges of embedding ai, and making use of enterprise data. naveen rao, vice president at that ai antedated company databricks, recently announcing a $50 billion around in financing and valued at a little over $60 billion u.s. you are in barcelona for the mobile world congress. talk to us about the databricks

proposition. how much appetite there is in europe for the solutions you are offering at this time? naveen: databricks provides an entire modern foundation for your data. we are seeing a shift going from siloed data from different saas sources and applications into one unified foundation, kind of a single source of truth across all applications. that allows you to contextualize and estimize ai for the enterprise, which is where we believe the value is. tom: do you have a framework in terms of the expected enterprise value across sectors or regions? what kind of value could be unlocked as a result of these applications? hetal: we believe most of the enterprise value will come from leveraging ones own data, that becomes the moat, the advantage of the company has in their competitive arena.

having access to general models from anthropic, openai other providers is great and it moves everybody up, but the competitive differentiation will come from using your data specifically for an advantage. we call this concept data intelligence as opposed to general intelligence where we can derive specific intelligence from your data. tom: can you give us examples of use cases that are providing real return on investment for enterprise customers? naveen: understanding how your customers are viewing a new product. even in real time, during a support call, whether a customer actually wants a different product or wants to be up sold or down sold, basically operational efficiencies around understanding your business better. that is on the operational side. we're seeing transformations like understanding your code bases and making the engineering processes of developing new

products faster, iterating quicker, improving quality at a faster rate. these are all the things that we see here, really a jet pack strapped onto the development process of the engineering endeavor. tom: there is a number of equity analysts who are pointing the lens at the earnings story when it comes to corporates and suggesting we are not seeing real impact on roi. what is the kind of timeframe? when do we see this having positive impact on the earnings story? naveen: like any major transition, like the industrial revolution, it takes many years read this will be measured in decades, they will not happen overnight. there is lots of systems that need to adopt these new capabilities. when we saw that security governance were quite important to ruling out an enterprise application. you can't build a new app unless you understand how you can secure it and prevent leakage of information.

we are just getting to that point. databricks is providing those tools. the next site's user interface. building the correct interfaces to consume intelligence when and where you needed to the user that needs it, is quite important, and this has not been cracked. a chatbot was the first version of this but it is a general interface that will not apply to all applications. cody interfaces have taken up because they supply the right insight at the right time. this is where we will see a lot of innovation and is the subject of my keynote in just a few minutes. tom: what are the main headwinds when it comes to regulations? is it risk aversion, what are the headwinds to adoption? naveen: we don't see that yet. there are regulatory hurdles. whether it be in the u.s. or asia or europe, we try to conform to all these local rules. we don't see wrigley tories as a

huge impediment. people conforming to the gdr rules to customize these models and making for they are safe is quite important. what we see is do they have reassurances that there will not be hallucinations, if the performance at a bar that adds value, is my data secure and safe? these are outside of regulation and much more about the technology stack is not quite there yet and is emerging right now. tom: i want to ask about geopolitics and the interlink with technology because we are getting a reminder today. there are some in europe questioning whether the transatlantic alliance is fracturing. i wonder whether you get a sense from europe clients whether there is any caution partnering with americans entities? naveen: we conform to all the rules in the local geo where we sell. we see a lot of demand for this modern-day architecture in europe, it is one of the big growth areas, a lot of

industries are transforming their way of doing business and operating. we don't see anything like this. it is early days and hard to predict these things of course but so far, companies are rational, they want to buy the best solution and databricks has one of the best solutions for this modernization capability. it is not something that has hit us recently. we are very much in this hyper growth phase. tom: recently partnering with s.a.p., the german software provider. the databricks vice president of ai, if you are in barcelona tune into that speech. some other stories making news this tuesday. tsmc, the world's top producer of ai chips, says it will invest an additional $100 billion in u.s. plans, supporting trump's goal of increasing domestic manufacturing. the chief executive of taiwan semiconductor joint trump at the white house to unveil the plan. the investment will bring tsmc's

american presence to a half dozen place for advanced wafer fabrication and two more for advanced packaging. the u.k. financial ombudsman services has complaints from financial services customers climbed more than 40% in the final 3 months of last year. motor finance was the biggest category with a pile of cases stuck in legal limbo. the u.k. supreme court is hearing several cases about this old motor finance with a decision expected later this year. moody's have said car loan missed selling could cost the finance industry 30 billion pounds. this is bloomberg. ♪

>> the fed will be more likely to look at the whole puzzle, not just one action. i think the fed, at least in

this upcoming meeting, is most likely to do nothing and they will take it one meeting at a time and try to assess these changes. tom: but goldman sachs vice chair and former president the reserve bank of dallas robert kaplan speaking. let's get to the impacts of the tariffs and the trade war we have now entered into. relatively muted, there is downside for the mexican peso, the yuan stronger by 0.2%, support coming through in terms of the fixing and beijing is not in a rush to weaken that currency to offset the tariff impact. the bloomberg index also largely on pain -- unchanged. we look ahead to president trump's address to congress later today. it's have a look at the equities story because the trump trade has faded when it comes to the equities story. since trump came into power, the gains that came through for the s&p have now been erased rate

received money moving into treasuries and yields falling. the two sectors facing the biggest pain, technology and energy, despite the members of that cabinet who are aligned with trump on those issues but the second most impacted energy and tech, the s&p has a race to the gain since he has taken office. markets now pricing almost three cuts from this federal reserve as they adjust to weaker data out of the u.s. we will talk to the ceo at 7:30 a.m. london time. francine lacqua will be joined by the ceo of continental as the company sees limited improvement to profitability this year at 9:30 a.m. london time. before that, continued focus on the trade war with the opening trade. this is bloomberg. ♪

anna: i am anner edwards.