lizzy: happy friday. this is "bloomberg daybreak europe." i'm tom mackenzie in london. another tariff.

donald causes levies on canadian and mexican goods that comply with the usmca trade deal. asian stocks slide on the uncertainty. we reviewed today's u.s. jobs data. bitcoin falls after a trump executive order for a crypto reserve disappoints investors pray the white house crypto czar saying taxpayer money will not be used to buy digital assets. bloomberg learns the u.s. was to link a minerals deal with a quick ceasefire between given moscow. ukraine's president says he will speak with u.s. officials in saudi arabia next week. ♪ tom: the tariff work saws, the tariff u-turns, what does

trump once remains of the key question for investors. european futures pointing lower after ending the session flat yesterday. we build up over the jobs data out of the u.s., after one of the surveys yesterday suggested that there was significant cutting coming through when it comes to federal workers, but also tech and retail. was he 100 futures pointing lower 0.4%, s&p futures stateside after falling 1% yesterday falling lower 0.2%, the pressure has been on the tech trade of the u.s. and you saw that theme continuing with heavy losses yesterday, the semiconductor space and mag seven now in correction territory. today though futures pointing modestly higher on that tech heavy index, up by 0.3%. let's look cross assets trade the bonds selloff we have seen this week getting something of a rep or even in the session today. the 10-year mark in the u.s.

yielding 4.24, the single currency up in the session today. we have the ecb cut as expected yesterday but there is a big question mark around the april decision. 1.08 on the single currency. bitcoin taking a hit on the executive order and disappointment within the crypto space. down 2% so far in the session. brent currently up zero point 8%. it is a bit of mixed picture, avril. avril: it is a mixed picture but you can clearly see how investors finding it difficult to position. this is finding it difficult to do business amidst this lack of long-term clarity on u.s. trade policy, that is what is sapping risk appetite in most of the region, including on the japanese nikkei that is the underperformer i should say. the losses being exacerbated by the yen strength.

we have seen dollar-yen below 148, against the backdrop of the largest labor union in the country calling for the biggest rate hikes -- or wage hikes, i should say since 1993 -- to your point about it being a mixed bag it is about the hang seng outperformance. what is driving this, no surprise, it is led by attack. if you look at hang seng tech following the crash last friday, it was shaky at the start of the week, as we waited for npc details, then we got the focus on tech and consumption, alibaba unveiling its ai model and today it is heading for a third day of gains. looking at the start of the year, the biggest seven tech names have added $40 billion in market cap as the mag sevens sink. these gains in the hang seng tech for the week a bit tepid now, comes in spite of trade

data that shows you exports that are rising less than expected in china. really not a good sign amid the external environment, tom. tom: the seven tightens and the outperformance of u.s. tech versus u.s. counterparts. we will see if that theme continues. avril hong joining us out of singapore. now to the tariff question in the details around what transpired with president from pausing tariffs on mexican and canadian goods covered by the north american trade agreement, the u.s. mca, that includes items such as autos and certain fertilizers. the duties are delayed until april 2, that is one trump is expected to unveil plans for global reciprocal duties. pres. trump: most of the tariffs go in april 2. right now we have some temporary ones and small ones, relatively small although it is a lot of

money, having to do with mexico and canada. but the predominant tariffs will be reciprocal in nature. tom: well for more, let's bring in bloomberg's east asia government editor. does this trump administration know what it is actually doing with tariffs? what items from canada, from mexico fall under this temporary reprieve? >> it's difficult to say. we have seen the whiplash going on with the tariffs on, tariffs off, markets up, markets down. we had valleys in the peso and canada's currency today. under bloomberg data, when it comes to mexico which is heavy in agriculture, about 49% of its items would be exempt under u.s. nca, under the trade agreement, and 41% are in a gray area. a u.s. official said with canada

it is maybe 60%. and the key issues for canada specifically, and also for mexico, our auto parts because the automobile industries between the three countries are so intermeshing. with canada you have the phone or lasers. how -- is one of the items that is -- potash is one of the items that is part of this. difficult to say were the smaller items fit in, but these are the bigger items under the trade agreement between the three countries, which would be able to dodge the tariffs that were said to be imposed earlier this week. tom: as you have broken down for us in such an excellent manner, this is complicated and it makes the question of how you plan on investments if you are a company that much more challenging. what happens next then? >> we are waiting for april 2,

the imposition of reciprocal tariffs, and also what will happen with canada and mexico. you will have various industry sectors who are lobbying the white house now. yesterday -- when wednesday india's foreign minister said the trade minister was in washington for talks, you are seeing a lot of collateral talks going on where countries have dispatched their trade minister to be u.s. trying to get more favorable terms for their goods leading up to the april 2 reciprocal tariffs. what exactly is going to come up, we don't know, but it is causing anxiety in governments, in trading houses and industry groups. we just have to wait and see until next month when april 2 rolls around. tom: let's see if we get more clarity or confusion come april 2. john hurts of its with a write-down of what has transpired the last 12 hours or so on the tariffs story that

continues to give us on tenterhooks. let's get the market reaction to this anxiety that jon was talking about. federal reserve governor weller repeated his assessment that the impact on prices from tariffs is likely not going to be significant, on that level of aligning with the trump administration assessments. the u.s. treasury secretary scott bessent defended president trump's trade policies. >> people say oh, tariffs are a regressive tax, well are they a regressive tax if you then use the income from tariffs to know taxes on tips, no tax on social security, no tax on overtime? making auto loans tax-deductible. those four policies which president trump put forward during the campaign all accrue to the bottom 50% wage earners and working americans. tom: for more, let's bring in bloomberg's valerie tytel.

the market reaction then just to the latest tariff news -- do they even know over to look at this point? >> the market has been all over the place this week to say the least. the most important thing from the price action yesterday is the recent delay in the tariffs. april 2 did not do a lot to lift market sentiment. we closed near the lows in the s&p 500 and on the week s&p futures down 3.5%. it has gone from a tariff delay being a good thing, to a tariff delay being a bad thing now, it prolongs the uncertainty for more weeks to come. it is also hurting the tech stocks, those high beta stocks, we have seen the nasdaq slide 10% from its highs only two weeks ago. if we look at the negatives, the start, my eye. the mag seven is now trading below its 200-day moving average for the first time in two years. the equity momentum is to the downside. the one thing that could shift

this is perhaps a good payroll print today, we have the nfp at 1:30 u.k. time, consensus is for a 150 k. the rate to stay steady at 4%, but there has been attention lately on the jobless claims from federal workers, so the skepticism here is that when will we see these public job losses lead into the private sector? some are calling that not to hit until the second quarter, maybe in the market. , not this month -- maybe in the march print. tom: valerie tytel with a review of the jobs data, average hourly earnings expected to dip month on month, so what's that number within the mix. thank you for the market breakdown and preview of jobs data. let's get to the defense spend story that continues to evolve. european officials have been told that president trump wants to link the proposed u.s.-ukraine mineral steel to demands for kyiv to commit to a

quick ceasefire with russia, as the west confirms that officials will meet with their ukrainian counterparts in saudi arabia next week. >> i think it will be a good meeting, i really believe that. hopefully that will be a good signal to the russians because they have been proactive in wanting to get something done here. i think that's who the president is, he is a peace through strength president. the best wars are the words that never have to get fought. if we can solve this and not fight anymore and save lives, that is the aim of resident trump. tom: steve wycoff saying the russians have been proactive. they have provided the trump administration new details on what exactly russia has been proactive on. the leaders have been in brussels to mobilize hundreds of billions in extra defense spending to counter the threat from russia. oliver crook is there. ollie, there may be some

movement on the ukraine mineral steel it seems. >> because there is a major difference today versus last week, which is now the united states has caused military aid to your -- ukraine, has caused military. sharing with ukraine. they are pushing zelenskyy with real differences in the calculus. that is something the president of ukraine cannot ignore and will be forced increasingly to the table for, particularly despite the fact that he was in brussels with e.u. leaders, there was nothing that came in terms of material support. there had been discussions about another 20 billion euro package. that sort of evaporated from the conclusions. we heard from mike waltz yesterday saying the move towards negotiations and confidence building measures on the table would make the president take a hard look at removing the pause on weapons and intelligence sharing, it is directly linked to ukraine's willingness to move quickly

on the minerals deal with explicitly a path towards ceasefire. ukrainians have been reluctant to do this without the security guarantee is provided by the united states. the u.s. says if ukrainian vested interests, that is a u.s. security guarantee. that ignores the fact that if russia were to re-invade ukraine, they could still honor the precious metals and those sorts of contracts, which if that is the only thing it comes down to would not be sufficient in giving the ukrainians certainty and the kind of safety they are anticipating, but this is the reality of turning the screws on the ukrainians. zelenskyy we understand will meet with mohammad bin salman the crown prince of saudi arabia on monday and his people hang back a few days to discuss with the u.s. administration. tom: in brussels you were at the summit following the discussions. the e.u. agreeing to reform those fiscal rules to boost defense spending, where are we

in this process? >> let's look at what we got materially. we expected another 20 billion euros in affect events packet for ukraine. that did not happen. we were discussions about putting forward one representative to help negotiate on europe's behalf. this is been talked about the last few years. that did not happen. what did happen was moving forward this idea of the fiscal rules. the e.u. says this could unlock 650 billion euros over four years. with these fiscal rules, a lot of these rules are not necessarily follow by many countries to begin with. they often run afoul of them. because you give the extra headroom to give spending at the national level allowing countries to acquire, debt doesn't mean they will do it. there is other limits, for example, the bond market, fiscal strain within the nation, so the 650 billion euros is not direct money, there is also this 150 billion euro loan the e.u. is talking about, they say they

will examine it as a matter of great urgency. in terms of the real new money going towards defense, the main event this week was out of germany, it was out of friedrich merz, and was about that trying to release the debt brake and get hundreds if not close to a trillion euros of spending towards infrastructure and defense, and that will be setting the drumbeat. there is the question that they put out a statement with only 26 member states signing it, hungary being notably absent throughout the process in terms of endorsing ukraine and military aid. tom: as you say, the small matter of the bond market that has asserted itself aggressively into this conversation this week. oliver crook in brussels with the latest on how europe is trying to build up its defense capabilities. it is 7:30 a.m. u.k. time. ollie will be speaking exclusively with the european commissioner for defense and space amdrois kubilius.

the chinese foreign minister wang he says beijing will act as a force for stability as president donald trump's tariffs shake up their global economy. we are live in beijing next. this is bloomberg. ♪

tom: chinese foreign minister wang he is presenting the country as a force for stability in a changing and turbulent world amid growing u.s.-china tensions, after president trump doubled tariffs on beijing to

20% this week. wang yi vowed to defend global fairness and world peace. >> new china stands firm on the side of international justice. and resolutely opposes our politics. -- power politics. history should move forward, not backward. a big country should honor its international obligations and fulfill its due responsibilities. it should not put selfish interests before principles. tom: that's crossover to bloomberg's chief north asia correspondent stephen engle standing by in beijing. wang yi is one of the more seasoned leaders in china, one of the more seasoned diplomats. what for you were the key takeaways from his speech? >> you know his character, tom, when you were the beijing

correspondent area wang yi among all the major ministers in china is perhaps the most sharp tongued and he did not disappoint today. there was not a lot of new material to chew on except the fact that this was the first time we have heard from him since the trump administration up those tariffs in relation to what they perceived to be a very bashing action on the functional issue earlier this week. much of the press conference which was about an hour and a half which i attended with wang yi, he took issue with the trump administration. he referred to it as abiding by the law of the jungle. he mentioned that twice. he also said china opposes double standards, trickery bullying and on the fentanyl issue he went off even more. he says china always resolutely battles against drug trafficking, one of the toughest against drug trafficking in the world. he slammed america's stance on

this blaming china as being two-faced, and says fentanyl in the u.s. is a problem that needs to be addressed by the u.s. itself, and vowed beijing will continue countermeasures against tariffs if the trump administration levies further moves, they will continue to do those countermeasures against what he called arbitrary actions from the united states. it was a wide-ranging press conference that talked about taiwan. nothing new there, china reaffirming their stance that taiwan is an unalienable part of china and cannot be fractured from the motherland. he also talked about the ukraine war. he said beijing will continue to seek peace in ukraine, but when asked by bloomberg news whether in that process if there is a peace process, whether the parties involved in the united states, russia, ukraine and china whether china would send peacekeeping troops to help keep

the peace, he did not touch that one at all. not too surprising though. tom: fantastic wrap up. bloomberg's north asia correspondent stephen engle on the comments from china's foreign minister. sharp words from wayne d.a.. -- wang yi. as friedrich merz tries to form government in germany, could political changes cause shifts in the country's energy policy? we discuss next. this is bloomberg. ♪

tom: germany's politics swung to the right at last month's elections. the new government could change how the country powers its economy. joining me is an analyst with bloomberg nef's regional energy transition team.

we are awaiting the coalition, friedrich merz is expected to be the chancellor, and it is likely his cdu will partner with the spd. what's that mean for changes around the energy policy for this german economy? >> under friedrich merz, the aim to decarbonize the economy by 2045 remains as well as the 2038 target. what changes is the overall approach to the transition which becomes more pragmatic and cost focused. we expect support for renewables like solar and wind to continue. we also might see a push in regulations for carbon capture and storage sector. on the other hand, the party's more technologically neutral stance could be that targeted support for specific technologies such as heat pumps or ev's or hydrogen could see more friction. tom: germany's industry pays energy costs that are three times that of the united states, double that of china, what is

the energy mix likely to be to address that cost? >> germany's electricity market is in a really tight spot. because it's firm capacities shrunk by a quarter in the past 10 years because they shut down all nuclear in 2023 and coal is also phasing down, so while solar and wind is increasing to replace this, germany needs dispatch a power to ramp up when the sun isn't shining into the wind isn't blowing. germany could start building new grass plants -- gas plants. this isn't new, the previous government wanted to build gas plants but wanted them hydrogen ready so they could contribute to a cleaner grid. instead merz is also supportive of new gas plants but doesn't want to force them to be hydrogen ready and would rather let the economics drive which technologies are actually installed. tom: top line, do energy prices in germany come down? >> not really, and actually

german households pay 60% more for their electricity. whilst the great investment could help, actually two days ago merz announced a 500 billion euro plan for investment in infrastructure which could include the grid, this could try to tackle reductions in electricity costs but also taxes are important. tom: excellent analysis, thank you for coming right in early. sophia from bloomberg nef's regional energy transitions. wall street ended in the red yesterday as investors turned risk-averse over today's tariffs. we get the market positioning calls from marija veitmane of state street. watch golf from the best seat in the house with xfinity. from the tee to the green, catch every pivotal moment of the players championship in crystal clear enhanced 4k. find tee times, tour your favorite holes and see live leaderboards and scorecards.

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tom: good morning, this is "bloomberg daybreak europe," i'm tom mackenzie in london. another day, another tariff row back. donald trump pauses tariffs on canadian and mexican goods that comply with the usmca trade deal. asian stocks slide on the uncertainty. we will preview today's u.s. jobs data. bitcoin falls after a trump executive order for a crypto reserve disappointments investors. the white house czar on proposing taxpayer money will not be used to buy digital assets. the u.s. wants to link a minerals deal with a quick ceasefire between kyiv and moscow. ukraine's president will speak with u.s. officials in saudi arabia next week. european futures pointing sharply lower after a flat close yesterday on the flip-flopping on the tariff front from the

trump administration. european futures pointing lower 1%. ftse 100 futures in the u.k. pointing lower 45 points. s&p futures after selling off yesterday pointing modestly higher. that after a shellacking yesterday down 2.8%. let's have a look cross asset. the bond selloff, bit of reprieve so far, 4.24 on the benchmark 10-year. the euro continues to strengthen , 1.08 on the single currency. bitcoin under pressure on an executive order that disappointed. brent trading below $70 a barrel, just up zero point 1% in the session 69.61. german bonds making history this week. experienced their worst rout since 1990. the selloff reverberating through global debt markets. valerie tytel has had her finger on the pulse of the bond market rout this week. bit of reprieve today. walk us through how the bond

market has readjusted this week, val. >> what a monumental week for european government bonds. the old adage never go short bunds was proven wrong, with yields flying 42 basis points higher in the last session, it lifted yields across the eurozone. and this is important, tom, because these other countries are more indebted, their fiscal headroom is eroded even her with this lift to brent yields. the euro on the week up more than 4%. it has just flown at the gates. we're now talking about levels like 1.10, one .20 not far ahead. it was only a few weeks ago we were talking about parity. that narrative has been put to bedford now. if we look at how the euro has performed this week on a historical basis, it is the sixth best week since the inception of the euro, we have really just flown off the gates. all the short positions on wound as we are now bullish on the european currency. tom: the sixth best week since

its inception, while. -- wow. what is happening in u.s. tech? the real seemed to be coming off. >> coming up quickly, tom, the nasdaq hit all-time highs two weeks ago, it has lived 9% in a quicker fashion. -- slid 9% in a quick fashion. the broader s&p 500 testing is 200 day moving average. the magnificent seven testing its 200 day moving average as well. the one thing i want to point out is the difference between u.s. tech and china tech. on the one side, u.s. tech really taking a pummeling this year. compare that to what is going on in asia, hstech of 35% year to date, this upper performance of other world equities given the rally in european shares and asian tech shares as well taking the shine off u.s. assets at the moment. tom: that divergence is pronounced in terms of china versus the u.s. on the tech

story, deepseek, alibaba and tencent all having a role to play. as get more analysis and bring in verio vitamin, equity research head at state street global markets. good morning, you have been consistently and for quite some time now bullish on u.s. tech. do you check that enthusiasm? marija: thank you. for a long time it was a really good call. now market is questioning this idea. what is interesting is market has been very long tech for, i mean, beginning of the year and valerie was talking about couple of weeks we made all-time high. market really bought into the story, so positioning in tech stocks has been very extended and now we are hit with all the uncertainty. all the kind of news around the alternative growth prospects in other parts of the market. and that is forcing investors to readjust those positions. it would be interesting to see

whether investors, whether it is really position adjusting or they are going to new sources of returns in the market. tom: let me try and pin you down on this. do you sell u.s. tech right now? or do you use this as a window to add? marija: we would be more constructive. we wouldn't be selling tech. we see lots of good quality plays. for us what is important is that uncertainty is huge. what do you want to have in the portfolio when uncertainty is huge? you want to have quality bets. where are the best earnings, the lowest leverage, the highest return on equity? all roads lead to tech. we need to wait for the end of this rout, for volatility to come down. what we saw a lot last year is that after the rout, investors came back to tech, so we expect

something similar. tom: china tech trading at 18 times forward earnings, that is a 40% versus u.s. counterparts, are you adding china tech at this point? marija: we don't have specific holdings in china tech, but what we see in overall exposure to china and hong kong, investors have massive underway positions. that chimes with the story we are thinking about in the market. investors are squaring up those positions. in china, they are still big underweight, there is still more to add, so that trend continues for some time. but as i said, we are very skeptical of a reversal of big trends. tom: as trump killed u.s. exceptionalism? marija: very good question. what is really interesting and we are watching it every day. we have this idea of market

narratives and one of them is trade war and international cooperation. what we are watching is that is of the most talked about topics in the market right now understandably, but if we measure the correlation with market moves, it has d iminished significantly. with policy by tweet, the market is getting position for that, and then moving on. profitability, interestingly, u.s. consumer spending coming up a lot. if the u.s. consumer continues to spend despite all this uncertainty, u.s. economy will be strong and corporate earnings will continue, then we go back to the old narrative where is the strongest earnings and that's u.s. tom: we will switch focus to europe. the ecb cutting rates as expected yesterday.

this listen to what christine lagarde had to say. >> monetary policy is becoming meaningfully less restrictive. as our interest rate cuts are making new borrowing less expensive for firms and households. and loan growth is picking up. at the same time, a headwind to the easing of finance conditions comes from past interest-rate hikes. and lending remains subdued overall. tom: what assumptions are you making about how supportive the ecb will be for this eurozone economy for the rest of the year? marija: the thing i was thinking about when listening to christine lagarde yesterday, and again today, is less restrictive. it is still restrictive, just less restrictive.

there is this big rally in european assets, it is not about ecb, it is about fiscal and that is really important. that is really the factor that changed what is happening in europe. tom: do you lean into that trade? marija: partly, but we are seeing in investor holdings is that investors were quick to close underweight european stocks. that position has been closed and we are watching whether they are adding. where they have not closed positions is euro is still underweight, that to us is a better opportunity. the other interesting operation from -- observation from investor holdings is that bunds were at the end of the month, but it was the biggest position institutional investors had in developed market sovereign bonds, so don't go for bunds,

that is exactly what investors had, so investors were caught wrongheaded in europe and in bunds, that is potentially were the trade is not european stocks. tom: bunds and the euro. marija veitmane continuing to say that all roads still lead to u.s. tech in terms of the fundamentals. some other stories making the news this friday. chancellor of the exchequer rachel reeves says she will reform the u.k.'s welfare system as part of a government drive to find savings to plug the hole in the public finances break speaking on a sky news podcast she said the system is letting down taxpayers because it is costing too much. president trump says he will probably extend the deadline for the sale of tiktok if ideal is not reached by april 5. trump had offered the app's chinese parent company bytedance a 75 day reprieve from the

bipartisan law that set a deadline in january to sell its u.s. business, however it is not clear if the president could legally offer a significant extension without a deal. broadcom soared 30% in late trading following upbeat sales forecast on and demand. the apple chip supplier said sales will be 14.9 to the three-month period to make, beating analysts with the chief executive cited a high spending is a key driver in the first quarter. spacex has lost its second starship rocket in less than two months. the projectile spun out of control before appearing to break apart during its eighth test flight. the rocket split apart as, planned but the spacecraft began tumbling and lost contact with mission control around 8 minutes into flight. ceo elon musk posted on x, culling the mishap a miner setback, saying the next it will be ready in 4-6 weeks. coming up, europe's defense in

the spotlight as the continent deals with the u.s. prospects of less support, the prospects of less support, we will bring the details in today's big take. this is bloomberg. ♪

>> given the threat and whatever happens in ukraine, we need to increase our defense capabilities, and we need to build in the next few years autonomous defense capabilities for europeans. tom: french president emmanuel macron speaking yesterday as e.u. leaders met to discuss boosting defense spending. let's bring in andrea who has cowritten a bloomberg big take on europe's defense capabilities

and how the continent would fare against russian aggression without u.s. support. it is your must read of the day. what is your current assessment? you have been looking at the details. what is your assessment of europe's abilities to defend itself if the u.s. were to pull back today? >> the issue is that europe simply hasn't been and envisaging the possibility of having to go to war without the u.s. in the past decades.what we see today is that it fully relies on the u.s. for a number of things that it's emily does not have the capacity to do today on its own. those are the strategic enablers, as they are called, which are strategic communications, intelligence, space communications but also air and missile defense. there are a number of things for which europe would need several years, sources tell us at least five years, to hold their own without the u.s. tom: that is the timeframe, at

least five years, can you flesh that out for us? how does that apply across different military capabilities in europe? five years before europe can really defend itself against russian aggression. >> defending a continent is so complex there are many layers of things europe would need. think in terms of what happens if europe is attacked? today what defense officials are telling us is that for a number of things as simple as ammunition, europe would probably falter within days or weeks, so there are very simple things europe needs right now which are infinite amounts of ammunition. that is what our sources tell us. ammunition can be ramped up fairly quickly. then there are more complicated things like logistics.

how do you get tanks to the frontline? how do you airlift them? how do you develop sufficient intelligence capabilities, space intelligence? those are things that need a lot more time. one of the biggest issues europe has right now are air defense capabilities. the problem with air defense is that it is extremely costly and sophisticated. for those things we are thinking in terms of years and hundreds of billions of dollars or euros. tom: what is the current level of dependency europe has on the u.s. when it comes to military capabilities? and is europe thinking about continuing to purchase hardware from the u.s. in the long term, or are they trying to build supply chains to have full capabilities in europe ex-u.s.? >> if you think in terms of the full defense of the continent, there is one thing europe is

fully dependent on the u.s. for, and that is the nuclear ambra left. the whole continent of europe is protected by the u.s. nuclear umbrella. we have seen overtures by president emmanuel macron, who is thinking of offering the french nuclear umbrella to more countries in europe. but even if the u.k. and france have nuclear capabilities, it is no match for the u.s. nuclear arsenal. and then, obviously, it is a whole debate right now in europe whether to buy european or continue buying from third countries. the truth is even if europe will try to focus on its own industry in the next few years, there are certain things it is too dependent on the u.s. for right now and air defense is one of these things. tom: andrea in brussels. the big take is worth your attention this friday morning to

get a deeper understanding of where the gaps line and how europe can make up for that dependency on the u.s. i am half an hour's time, at 7:30 a.m., we will speak to the european commissioner for defense and space. we get insights from andrius kubilius. oliver crook bringing us that interview later in the show. 730 time on the opening trade. tune in for that conversation as well. some breaking lines from the prime minister of hungary, viktor orban saying that hungary will work to slow ukraine's e.u. accession process. viktor orban speaking on state radio. he has been talking about ukraine. the top line from this interview so far saying that hungary will work to slow ukraine's e.u. accession process. that is something volodymyr zelenskyy of ukraine has pushed for of course. let's listen to what viktor

orban had to say at the meeting of e.u. leaders in brussels yesterday, as they debated how to adjust europe's rules to ramp up spending on defense. >> the european union isolated itself from the united states now. isolated himself from china because of the trade war. and isolated himself from russia because of the sanction policy. if somebody is isolated here, it is the european union as such. hungary has good relation to all three directions, so we are not isolated at all. tom: viktor orban, prime minister of hungary saying it is not hungary that is isolated but europe itself that is isolated from trump, the u.s. and from china. of course, hungary could be a key bloc against additional spending on defense that we know european leaders are looking at workarounds to that conundrum. stay with us. this is bloomberg. ♪

>> the market put three cuts in after some of the data. in the market has been all over the place in a sense because over the last 90 to 120 days we've had five cuts, zero cuts back to three cuts. our team believes the fed is done cutting rates until inflation gets under control. they believe -- and i'd say, as they are thinking about that, given if these tariffs go in, they thought they would have impact on growth in the u.s. and that may cause them to think about that. but right now you have a real rate structure, employment pretty stable and loosened a lot over the last year, so maybe their you is there will be no cuts. we will see what happens. >> inflation is getting under control or there are upside risks? >> our team economists always

thought it would take three years to get inflation under control. they project it to get down near that target towards the end of 2026. everybody says why doesn't it happen faster? it takes a while to work through the system. tom: the bank of america ceo brian moynihan. jobs data, nonfarm payrolls dropping later today. there is great interest in the markets always around this data print, but the expectations are building because the risks are that you are seeing a softening labor market. we had a challenger survey showing a big pickup in the number of job cuts announced. at the federal level, we have seen dojo doing their work but also in tech and retail. the nonfarm payrolls bring today with the focus on earnings when it comes to questions about inflation. because there is a risk for some at least that you have a scenario where the u.s. edges into stagflationary territory. we are not there yet but that is a risk that some in the markets are weighing up.

expecting a print of 160,000. that is the expectation for february. that is above the previous month of 143,000, the on employment rate expected to stay at 4%. for me the interest will be when it comes to how you think about inflation, the average hourly earnings expected to drop from 0.5%. that is the preview of the jobs data as we lead up to that later today. let's flip the board and have a look at the euro. what a week for the single currency. but it is best weekly performance in, the sixth best weekly performances the euros inception. additional defense spending, hundreds of additional euros, what that mean for the ecb they cut yesterday yes, but we now also know from officials that they are finally split on what to do in april. the market has been dating expectations around additional ecb cuts. so the spending impulse if you are cuts from the ecb has strengthened the euro.

hedge funds are piling divisions around 1.10. let's look at the diverse of when it comes to the china tech story. we have to rewrite so many narratives and one of them is u.s. tech performance. that has flipped on its head, chinese tech performance in the white line, that is hstech massively up affirming u.s. tech here today. you are in correction territory with the mag seven. closing in on correction territory with the nasdaq 100. china tech though is soaring. bloomberg technology will speak with the white house ai crypto czar on the u.s. government's new bitcoin reserve. coming up it is the pulse with francine lacqua, but before that, it is "the opening trade." this is bloomberg. ♪

>> i'm anna edwards, here's what you need to know.