tom: the magnificent meltdown,

u.s. and european futures stabilize after the nasdaq tumbles to its worst days since 2022. the u.s. pushes ukraine for concessions of talks with saudi arabia as what appears to be its biggest ever drone attack on moscow. plus, talks to only use hundreds of billions of euros. we will speak with the parties coleader later this hour. tom: good morning, happy to say, superlatives coming thick and fast when it comes to the selloff that walked through the wall street markets. the markets in the u.s. yesterday. the selling pressure, the s&p ending lower by 3%.

nasdaq 100 closing lower by almost 4%. you are closing into correction territory on the s&p with stocks down about 8.6% on that index since the record highs. better stabilization so far in the session, but clearly expectations and assumptions about the trump trade being unraveled and unraveled that pace. citi saying that u.s. exceptionalism is on pause at least for now. european futures pointing to games of .5% after the losses of around 1.3% on the stoxx 600. by the end of the close yesterday, ftse 100 futures pointing to modest gains, looking to add 26 point so far. in the u.k. is the ftse 100 looks open at 8:00 a.m. u.k. time. stocks and futures. s&p put into very modest gains. in the context of yesterday's losses, nowhere near pairing these losses. nasdaq 100 futures looking to add 20 points. the pressure was coming through across the mag seven as we saw the headlines, also the likes of

tesla seeing a stock drop there around 15%, but don't fret because the president says he will be buying one of those later today. foot the board and have a look across assets. yields down across the curve on the jews, the tens, the five spoke below 4%. tends yielding 418. yields down, almost three in the session. euro-dollar stabilizing out 108. a little bit of strength coming back from the single currency in the session. oil at a six month low on those growth concerns focused on the u.s., $69 right now on brent, currently stabilizing at that level but the pressure continues on the oil space and bitcoin gaining 1.2% in the session, but crypto, as an asset class, has been under pressure as well, linked to concerns about recession risks state side, a little bit of disappointment around the actions from the trump administration to support the crypto space. it at 80,000 we will do a deep dive in the crypto space, currently at 1.2% in the

session. avril hong standing by with a check on the asian markets. what is the finger on the pulse of the asian markets this tuesday? avril: it's looking quite negative, that being said we see the reason -- regions benchmark, which earlier lost two plus percent, managing to pair those declines. it gives you a sense of a bit of stabilization, the moderation of losses in the region, even though there is no outright catalysts to prompt this. i suppose the question also involves this is a buy opportunity for chinese hong kong stocks that are not faring as badly as the rest of the region today, possible, you have ai optimism, and pc stimulus hopes, and then you have the likes of citi upgrading chinese stocks as they downgraded those u.s. ones. notice well they even though the nikkei is peering earlier, declines are still underperforming. flip the board, some of this is to do with the yen strength.

we saw a downward revision for gdp, but most think this is not going to derail the boj next week in terms of the hawkers old. the yen strength is also related to the safe haven demand amid these uncertainties. also interesting, the support that the renminbi is finding, our colleagues have highlighted this kind of coincides with the chinese stock outperformance, very interesting dynamic, flip the board again. there seems to be this further denting of u.s. exceptionalism narrative, and if you compare to what we see on the hang seng china, vix surged overnight, but if you look at the gauge of all for hang seng china enterprises, it barely budge. as you compare performance with the s&p 500, so far this year their fortunes have been reversing. tom: that outperformance continues. avril hong in singapore with the check of the asian markets. u.s. markets tanking as we have

been discussion amid the trait anxiety over tariff policy at a potential recession in the world's largest economy, worth noting as well that in terms of the concentration of the selloff, the most concentrated so off we seem over two point 5% since the dot-com bubble. let's bring you bloomberg's valerie tytel for the details in terms of how the markets have been reacting. the trillion dollar question, has the market meltdown got further to run? valerie: big question for the markets to digest, was this the detox time that scott bessent was talking about, how we price it in yet or is there more to come? i was surprised to see the drawdown in the s&p 500 is now more than what we saw back in august without market shakeup in august. we have now slid more than that. s&p 500 down nearly 9% from its peak. we seen a raft of wall street's downgrading their outlook from u.s. stocks from the likes of j.p. morgan from citi, from rbc. tech also having its worst session since 2022.

the mag seven has now erased all of its postelection gains. one of the big drivers of that yesterday was tesla, having its worst session in nearly five years. down some 15%. a lot of this being driven or driving that the in tech stocks yesterday. as i mentioned the mag seven racing those postelection gains. bad news, it doesn't stop there. we had after hours movers, a profit warning from delta. we saw that stock move double digits in after hours dropping nearly 12%. tom: suggesting the consumers becoming more cautious in terms of travel and spending on flights, etc., trump is saying he will buy a tesla to support elon musk. talking of trump, any signs that the markets are providing a guard rail for this president when it comes to his tariff policy? any signs that he starting to rethink what seems to be the catalyst for the downside on these markets?

valerie: i'm afraid not yet. we had a tweet from him just a few hours ago really doubling down on his terror threat when it comes to canada, calling canada a tariff abuser saying we don't need your cars, we don't need your lumber, we don't need your energy, we will be making america great again. so if we don't have a change of language from trump, who will we get a change of language from, possibly the fed. we've seen two-year yields extend the rally overnight, now hitting a fresh year to date low when it comes to the two-year yields, we are now pricing in over a 50% chance of a fed rate cut when it comes to that may meeting. tom: thank you very much, what does the fed do, does that language around being comfortable holding on pause start to look a little dated? the selloff we are seeing in these markets. now to geopolitics, u.s. secretary of state marco rubio downplaying the possibility of a breakthrough in today's meeting between u.s. and ukrainian official saying talks will focus

on potential concessions. this comes after ukraine launched one of its biggest drone attacks against moscow since the war began. let's bring in greg sullivan, bloomberg's russia economy and government editor. greg, what do we expect out of the meetings. there's been a lot of drum roll up to these conversations. we've heard it last week but as we've been discussing, possibly the u.s. pouring cold water, what do we expect? bikes ahead of these talks in saudi arabia we saw secretary of state marco rubio come out and say, we are not looking for a major breakthrough, the u.s. is in a position where it's listening, china sea was possible, especially in terms of concessions, he expects concessions from both sides and that could include a territorial concession from ukraine, which would be hard for them to swallow. for the ukrainian side, this is a high-stakes meeting, we saw that the white house meeting last friday was pretty bad for zelensky. there's been a ton of pressure

heaped on zelensky by the white house, and the ukrainian side will really be looking to tamp down that pressure and tone it down and remain engaged so they can hopefully stay at the table and in any kind of future cease-fire agreement, have terms that are more favorable to them. high-stakes meeting for him and it comes as ukraine has this massive attack against russia which has 74 drones against the capital and hundreds of cross other regions. definitely a signal there amidst the start of these talks. tom: we continue to watch the follow on the russian capital. the pressure from the u.s. is one-sided in terms of carving off intelligence in the rhetorical of tongue lashing that zelensky faced in the oval office. we wonder if any pressure will be put on putin. we know the president's middle east envoy, steve is expected to meet president putin in moscow at some point, what do we expect from that meeting and are the u.s. finally going to put

pressure on putin? >> we don't know many details but we do know he is expecting to go to moscow, he is, as you said, president trump's middle east envoy but he has been engaged in the u.k. test ukraine envoy. it will be interesting to see what, if any pressure u.s. puts on moscow, the pressure has been largely one-sided, we did hear from the ukrainian side from zelensky saying they would be open to a truce if that includes air bombardments and naval, but it's not clear that the russians would accept it. the russians have given no indications of any concessions they are willing to make, even though we do know they would be open to a cease-fire under certain conditions, one of them being an eventual long-term settlement. but right now that seems far off so it's hard to see what concessions russia is actually willing to make. tom: we will come back to you in the days ahead.

bloomberg's russia economy and government editor with the latest on these discussions in saudi arabia and leading up to that meeting in moscow. thank you. up next, germany's greens make a counterproposal to the flagship defense bill. this ties back to ukraine in the u.s. unwinding its trans-atlantic relationship. i will be speaking to the coleader of germany's green. that is next. plus a little later in the show we talk about how ai is driving demand for data centers. we discuss what this means for europe in terms of the view from schneider electric. how they are building into the datacenter revolution. stay with us. this is bloomberg. ♪

>> i think it's perfectly normal in a situation like this that there is concerns and demands, but it's also perfectly normal them to talk about those

concerns and i am optimistic that the two goals of these measures that we have to strengthen our defense effort, as the european pillar of nato and to increase infrastructure will be points where green will be found at the end. tom: your cookie sounding hopeful on the prospects of greater defense spending coming out of europe's largest economy. germany's green and demanding tougher rules for defense spending and talks of unleashing hundreds of billions of euros for the country's perspective ruling coalition. they have made a counter offer that would tighten restrictions before it debt limits would apply. the support of the greens is needed that requires changes to germany's constitution. very pleased to say we are joined by the coleader of the german green party. francisco, thank you for your time, what is your expectation, what is the likelihood that a

defense deal will be done that loosens restrictions on spending in the current parliament? >> good morning from germany, we are ready to take on responsibility, but of course in a way that makes sense for germany, for ukraine. and the defense was created and very ambitious. it only has 1% for defense spending in a general budget, and also it is a very narrow defense, it doesn't even include intelligent services, etc. it's paramount that we have support for ukraine also in a big defense package. these are our conditions that we pin on the table, he needs to include ukraine, we need to be ambitious on defense spending and have finance security larger. so we put out our proposal last night, and of course, we are ready to negotiate. but i really want to make sure that we really serve security

and there's a second large bill put on the table where we are not sure at all if spending will go into german infrastructure, if it will serve our security and interest of our country or just some nice gifts by the parties that they have promised during the election campaign. tom: for the context, the green party has long pushed for more defense spending, so you met with the cdu, you met with them last night and of course the social democrats, what was the atmosphere like, was a constructive, the meeting? >> i was not part of the leaders -- meaning, it's our group leaders in parliament. i heard these are not so easy talks, but we stayed constructive, serious and are ready to do what it takes for our country. we are not ready to just give a blank check for just government

spending without any structural reform, without any ambition, that's not what we are therefore. tom: but it's clear you are ready to negotiate? let's of course, we have been ready to negotiate since the night of elections. there has been nobody really engaging with us seriously, even though it has been obvious that we are needed for majority, but we have been signaling that we are ready to negotiate. tom: at this point, do you think it's possible, given what you heard from your counterparts and colleagues in the discussions yesterday, do you think it's likely we could get a deal by the end of this week? >> i really hope so. the situation is dire in ukraine. we really need your up to speed up its own defense spending, but we also need to realize that cybersecurity, we need to be in the modern face of security, and

we need to make sure that we have all we need for our own country in terms of infrastructure. in germany we have crumbling bridges, there's a lot to be done. and we need to do this now. it's unfortunate to see that the new coalition is not ready to tackle the challenges, but just a pour over more money without tacking the good causes. tom: you are ready to negotiate, you are clearly involved in these conversations. what are the red lines for the green party at this point on this spending? >> i just told you some of the things that are important to us on the defense bill -- defense bill. be ambitious, it's really difficult to envision a bill where you see only 1% of our budget goals for defense spending. we are supposed to be 2%. we were arguably more. but 1% is really, really little

and no inclusion of ukraine. at the same time, we see that the government is planning big gifts to some part of the electorate. it's really going to give more money to the wrist each in our country instead of spending it on on our defense. that is not acceptable. we have a fair burden sharing at a real push for our inclusive security. tom: the eyes of europe are on the green party right now, so the focus is there, whether investors are lawmakers because the euro zone, the eyes are very much on what you are proposing in your negotiations. is it fair to assume that if the deal doesn't get done in the current parliament, that it won't get done at all because of the seats taken by the afd in the far left? is that a fair assumption, the deal does not get done if it moves to the next one?

>> if there is no agreement at all in the next one will be more difficult, may be impossible on that topic, that's why we have introduced our own defense bill and where we say in the worst case of the proposal by the government or the next government is not finding agreement, and we have a proposal, which is clear for security, security communities in germany, europe is behind it, and they can vote in favor of it. that's why we said last night we introduce our own bill. we just want to make sure the defense package gets through, if we cannot agree on the rest, it might be much easier to find a maturity in the next parliament, also security budget is much more likely, we introduce our defense builds and make sure we have an agreement on defense and make sure we have constructive negotiations.

tom: 1% is what's being proposed by the cdu and the spd, you are pushing for 1.5%, is there flexibility on that, what is your expectation that they will commit to 1.5% on defense? >> we know that they put the bar low at 1%. everything beyond 1% can be financed by debt. but let's be real, we cannot just finance our defense budget continuously by debt, it's not serious. and it's not fair to the next generations. so we really also hope that there is an agreement from their side to be ambitious, may be also to see that it's unfair for next generations, but we also hear that they need the flexibility in the budget now to finance the other projects they have agreed on when it comes to retirement and pension plans, lowering the taxes for the rich, so they need that space in the

budget. but we think it's a priority for security and not for letting some off the hook and making a more unfair analysis. tom: before we let you go, one last one, i will push you on this, you suggested there is the possibility of a deal this week. what would you say the odds are at right now the deal getting done? more than 50-50? >> these are difficult negotiations, it's been difficult for the negotiators -- for the conservatives which have been saying the opposite to what they are doing now, to agree on anything. but we really urge them to give up on their ideology. tom: thank you very much, co-of germany's greens. appreciate your time. we continue to monitor those negotiations.

greenland's parliamentary elections take on a new significant -- after president trump said he wanted to make it part of the united states. we will have more on what to look out for next. that's coming up. this is bloomberg. ♪

tom: parliamentary elections in greenland are well under the radar outside of greenland and and maybe denmark as well. but the u.s. president's ambition to make the danish territory part of the united states means more people are paying attention this time around. let's get more from bloomberg scope in harrow bureau chief. what is at stake ultimately for greenland in the united states? >> this is essentially about greenland's future. i guess you could say that about

any general election, but this time it's really about independence. trumps interest of really been a wake-up call and now they feel seen and heard and feel like they are special and may be someone wants to invest in them and they see they have a value. coming off of about 300 years of being a part of denmark, greenland is at an inflection point where they feel like they have to have their own voice and have their own culture. but at the same time, it's not just an easy break away from denmark, and this is where it really becomes interesting because all the parties i sent you are pro-independence and if you go back to general election for the last many decades, it's always been on the ticket. independence has been a big part of it. but this time it's really at a point where now they can't go back. they have to follow through with some of these independent wishes. but they don't agree. they agree but when the split. but the how and the wind is completely open. so what i'm really going to be looking at when we get the results later tonight, maybe tomorrow morning is the one

party -- look for this one party. it's pro-independence, nationalistic, some would call it a populist party and if they get a really strong showing in maybe if the leader becomes prime minister, we could see things really shake up in greenland. when it comes to trump, it's obvious and independent greenland, if they break away from denmark, it would be easier for him to gain influence of to invest in. greenland does not really want to be american. tom: really excellent set up, bloomberg's copenhagen chief on the elections in greenland. we will be watching closely, thank you. coming up, we discuss crypto's wild ride since president trump returns with deutsche bank's research with senior

tom: good morning, this is bloomberg daybreak: europe. i'm tom mackenzie in london. these are the stories that that your agenda. the magnificent meltdown. u.s. and european future stabilize after the nasdaq tumbles to its worst days since 2022. the u.s. pushes ukraine for concessions at talks in saudi arabia as kyiv launches what appears to be its biggest ever drone attack on moscow. plus, germany's greens demand tougher rules of defense spending in talks aimed of unleashing hundreds of billions of euros. the parties coleader tells us she's hopeful of a deal by this week. breaking lines crossing right now from the german automakers staying on the story of germany. volkswagen the redhead vw seeing 2025 operating return on sales up between 5% to six by 5% at the high-end. so the high-end of that range is

above the estimates of six point 2%. volkswagen full-year operating profit coming in above the estimates, so that i over 19 bin euros. the estimates had been for 17.9 billion euros. about a billion euros of beat coming through for full year operating profit. in terms of net cash flow for 2025, they see that number at around 2-5 billion euros. full-year revenues coming in also above the estimates. a beat there in terms of full-year revenues. 324 billion euros. the estimates have been for 320 one billion euros. share coming in at six euros 30. volkswagen sees 2025 revenue up to 5% in terms of the increase. so they are looking at potentially an increase of revenue of around 5%. of course the stock has essentially been largely flat, about one point 5% is they gain

we have seen for a vw in the last 12 months focused on the cost-cutting plans, new models, anything about the tariff impact, the chinese market. they spring in bloomberg's oliver crook that has followed the story of granular detail. joining us where volkswagen is headquartered. your take from these numbers. elder: we are here in wolfsburg just behind us where we will have the annual press conference and we will hear from all of the different executives in the cfo. overall, what we got from the full-year is basically a revenue that was flat, operating result that a beat estimates down 15% in the operating margin coming in at five nay -- 5%. this of full-year for last year for what we got in 2023. five .9% last year. the year before that it was 7% and now we are guiding potentially lower. a range of five point 5% to 6.5

percent. when we look at the volumes and number of cars sold last year, they were down slightly. 9 million cars down 3.5 percent. but this is the transition for volkswagen. this is not been a secret. last year was tough labor negotiations. in all the cost negotiations that had to go. this is a very capital intensive time for the industry but for volkswagen in general. i think that going into this meeting there is a shorter's -- sort of strategy from the c street -- c-suite that says they've laid out their strategies and many problems volkswagen is facing, many fewer volkswagen specific, they are industry specific. we are talking about u.s. tariffs. we've got an outlook. i don't know how anybody in the car industry could given outlook in march of 2025 given the uncertainty we see from the united states. that will be a major issue. just to recap what we saw in terms of volumes, western europe was basically flat in terms of the number of cars sold in the fourth quarter last year. north america was a bright spot,

up 4%. china, the recovery in china is not happening from the high end, from the low end. chinese volumes down 8%. i don't know we will see anything in terms of meaningful recovery, especially in the luxury recession that we seen in china. that's enduring for the higher in vehicles that volkswagen cells. tom: we know porsche has been impacted. what will u.s. the ceo? was the first question you put to him on the back of these numbers, will be china, europe, the u.s., the tariff question, what is top of mine for the executive team right now? oliver: it's funny you should as that. for me, the main question is, in a time of radical uncertainty on so many friends, whether it's the growth forecast, whether a question of tariffs, your job is to allocate capital and try to be competitive going into next year. but going into the next decade they are laying out their strategy but what is a certain pet you can do. what are other places you can place money that you know are

going to provide structural basis for growth for this company just given the volume of uncertainty? one of the things we were joking about last night was one of the decisions they made, they built battery factories over in canada in order to access the u.s. market for ev's. that is now coming into question. the fact that they want to go pulled the golf, the famous volkswagen in at mexico to get to the united states. we joked about it. it's now the gulf of america. this is the new reality for these auto industry that is trying to figure out where they are trying to build these cars and the reality of the situation is nobody will make these huge decisions about where you will base factories to roll out of these vehicles that have seven-year timelines with this uncertainty with your day today you are getting a different message from the trump administration. there will be a wait-and-see to see what happens with these tariffs. tom: we will have that ceo interview. oliver will speak to the volkswagen group cfo and you will be able to catch a

interview at 8:30 a.m. london time. so tune in for oliver's interview with the cfo of volkswagen later this morning. let's get back to these markets right now because we have seen a remarkable 24 hours in terms of the fading of the trump trade. yes, the futures picture is looking slightly more positive, but you saw a selloff of around 1.3%. european stocks by the end of the close. the pronounced downside coming through for the nasdaq 100 closing almost 4% lower. s&p almost 3% lower yesterday. the pressure on mag seven, that grouping dropping 5%. tesla tumbling 15%. president trump says he will buy one of the vehicles today as a sign of support for elon musk. european futures pointing to gains of .6%. ftse 100 up by 23 points. s&p looking to add .2%, nowhere near making up the losses of yesterday as citi has said that u.s. exceptionalism is on pause. at least for now.

nasdaq 100 futures after the raft of yesterday pointing to them if modest upside of point 10%. the trump put has crumbled in the face of this pressure and so far, no rhetoric from the u.s. president to assuage some of these concerns. the u.s. ten-year has been pit. 419, yields down two basis points. lots of money moving into treasuries as a haven bid. euro-dollar at 108. single currency up .3%. some of that down from what we've heard from green parties suggesting that a deal could be done on defense spending, possibly as soon as this week. brent at six months low below $70 a barrel. crypto has also come under pressure. bitcoin is up in the session today. cryptocurrencies among the trump trade's that have fallen since his return to office despite his announcement of plans for digital asset reserves and pledges to make america the

world's crypto capital. let's check in on bitcoin and the pricing. we look at gains today, but this since january and the downside is there. the crypto check right now is intraday. you are seeing a little bit of money moving back into crypto, but you are looking at bitcoin. down about 25% since january. let's talk about the factors at play and bring in deutsche bank's research senior strategist for at the details on the analysis. thank you for joining us. the thesis of bitcoin, that crypto could be a safe haven in a time of geopolitical angst, when did that thesis die? quick thank you very much for having me, at some point we used to think bitcoin was a bit ahead and as you mentioned it felt 25% into the peak. it was around $80,000.

i would say much of the price action was rebound by speculation which is the campaign. we've also seen the announcement, which caused -- on speculation of government buying crypto in bitcoin and the wishful thinking did not last and it raised sharply. having said that because you mentioned the announcement, i would say it depends on regulatory clarity, institutional investment and market sentiment, and what we have always seen is the fact that the prices are always impacted and thinking about fed interest rates, economic growth and geopolitical factors. and also mobile dial-up that has

correlated is that at the s&p. it will probably be very risky to remain high given the uncertainty in tariffs. tom: we look for clarity on the regulatory front, we look for some clarity on the macro front as well, maybe the chair of story as part of that. do you think broadly, the pendulum has swung too far in the other direction right now? as a selloff gone too far and too fast? >> if you look at the big picture, bitcoin has doubled last year, which is clearly a significant increase. so now it's reverting even that. this big search was driven by what i could think of us this effect on this wishful thinking. now if i look at president trump and what he is trying to do, we have this semi-last friday, he's

also trying to bring some clarity, and there was clear and straightforward regulation. so it is a bill and he mentioned before the august month this year, i believe the regulatory landscape will impact the future because if we have a clear regulatory framework that is going to drive more investment, higher liquidity, lower volatility, overall regulation is that a positive. tom: we've seen change of the top of the sec and may be benign leadership when it comes to the securities and exchange commission. we know the crypto industry would wrangle the former leadership under president biden. that has changed. it was specifically on the regulatory front would you be looking for in the weeks and months ahead that could be a

catalyst. >> there are a couple of regulatory issues, again, last friday it was in compliance and facilitating safe integration institutions. all of this has been mentioned. and also may be one big note that we have last week is an issue that the executive order is establishing pull strategy reserves, which is going to own 200,000 -- sorry 207,000 bitcoin , which has been signed by the government and entered as a long-term stock. in the administration is also going to have it stopped by. which is going to consist of

sophisticated -- tom: really important analysis and i like the light about the tinkerbell moment for crypto. senior strategist from deutsche bank on what to watch for particularly on the reglet tory front when it comes to the crypto space given that bitcoin is down about 25% year to date after those incredible gains that we saw in 2024. coming up, powering the ai boom, we discuss the ever-growing demand for data centers and what this means for europe. we will be speaking to a leader from schneider electric. europe's operations executive vice president, that exclusive interview is coming up next. this is bloomberg. ♪

tom: bloomberg has learned their

core we've has agreed a five year contract with openai. sources say the cloud computing company cell the pack with close to $2 billion to provide services to the air pioneer. he gives openai a stake in core we've worth about $350 million. it's closely watch potential ipo could value nvidia backed company out more than 35 billion dollars. meanwhile this estimated hundreds of billions of dollars are needed to build out the infrastructure to power ai demand. meda says it's planningmuch a 6n dollars on a projects just this year. microsoft looking to spend 80 billion on data centers alone this year. let's discuss the outlook and potentially the picture in europe with schneider electric's executive vice president for europe operations joining me in the studio. thank you for joining me in taking the time. let's talk about the european peace. there's talk about with the hyper scalars are doing to build out data centers, are we lagging in europe, how many data centers will we be building this year

and what role will we be playing in that? >> just to give a sense of what's happening, we see a global demand that could reach triple by 2030 in terms of data centers. it's going very fast, it's not happening only in the u.s., as happening in europe. i could tell you across the board in different geographies across europe, we see a large demand. it's coming from big players but also -- on the question is how to scale it. the wave of projects we are seeing in europe is so massive, so that we need to think about the wall end value chain from powering these data centers. it's a lot of energy and at the same time making sure that we collect the data at the right way the relation is enforcing it and encouraging datacenter development in europe. so yes, it's happening, it's a very strong trajectory, and the question for us at schneider electric is to company that with the right technology and we are

talking different types of divestitures. a debtor center for ai together, so we need to bring the right technology for these data centers to tech in europe, but second, we need to make sure that we power these data centers with green energy. it's really important to have an energy transition. and that has a role to play in that sense. that's why sustainability and technology the score for this. tom: can you just give us ballpark numbers in terms of how many data centers you expect, shovels and the ground projects you expect this year in which countries are leaving? >> i think we have never seen such a pipeline of projects. the realization of pipeline is something that is in a discussion because of course we don't know yet if it will be hybrid data centers from data, from cloud or from ai or combination on the ai, etc. all that is being designed in europe. but the question is, we are

seeing those developments happening in geographies that will not use these data centers. a lot of that hasn't just happen historically, but also in germany, france, now we are seeing that scaling across year. for example, i can tell you that half of the growth is coming from data centers, renewable energy and hydrogen for our own development, just showcasing that we see a lot of development in new geographies, why, energy is available, energy and ship and energy is renewable. tom: that's not across the board. france has nuclear power. germany, industrial energy cost three times higher than in the u.s.. to what extent is energy piece holding these countries back and how do you solve that? >> we see that because at the end of the day it's also availability of land. is not only power, it's availability of land. hit recovery is one aspect, it's also to recover water.

so it's a lot of water. that's why sustainability should be the enabler of the scale of data centers. i'm not talking about spain and italy, but i can tell you these are massive development. maybe to give you magnitude, working with this in france and spain and we are decarbonizing these data centers through ppa's, renewable energy, power purchase agreement with renewable engine. tom: is red tape getting in the way, what needs to be cut at this point? >> you are on the right spot, we have to be careful. historically europe has been over regulating and we need to make sure it is the enabler and to stay cold to those developments. we want europe to really embrace the development of data centers happening because we need that for digital transformation of europe, to the carbonized europe we need more energy efficiency, to have energy efficiency we

need digital because we need sensors, we need to collect the data, we need to have hedge and then we need to have intelligence. that's why digital transformation of europe will only happen if we have data centers, if we have these developments. that's why we cannot over regulate, and that's something that needs to be really fine tuned. tom: have any of your customers or clients suggested they will be spending less given the developments we have seen from deepseek on efficiencies? >> on the contrary, it showcase it would become efficient. we need more efficiency and all that. that's why optimization of the design of the data center is something we have been working on, but optimization of the technologies inside, at the end of the day it's positive, it's positive for the planet and we need to consume more data. all that is going in the right direction. tom: thank you for coming into the studio to talk about the opportunities around data centers on the challenges. schneider's electric executive

vice president for europe operations on the push around data centers in europe, the energy piece and regulations as well. plenty more coming up. stay with us. this is bloomberg. ♪

>> we have been ready to negotiate since the night of the elections. we have been surprised that there has been nobody really engaging with us. tom: do you think it's likely we could get a deal by the end of this week? >> i really hope so. this situation is dire in ukraine. we really need your up to speed up its own defense. the coleader of the german green party speaking to me earlier, had comments about potentially reaching a deal as soon as this week on defense spending out of germany, lifting the euro, and

putting pressure back on bond futures after the rally that we saw yesterday after the greens came in and said, we are not ready to support this deal. that language seems to be moderating. they have have the conversations a deal could happen this week. european futures up .5% after losses of more than 1% yesterday. the euro single currency gaining .2% in bond currencies under pressure. expectations you might see another move up higher in yields on the defenseman impulse coming through. let's look at stateside, selloff at the end of the trump trade, u.s. exceptionalism on pause is what citi says, the s&p 500 closing into correction territory, sniffing at the heels of that level down 8.6% from its state record high. down 8.6% from that level, you are looking up the biggest drawdown since august of 2024 when it comes to the s&p 500, let's look at what's happened with the mag seven. that's a pain point. this has been a narrow and a narrowly defined selloff we've seen a lot of it is concentrated in technology.

mag seven down into correction territory, wiping out the gains postelection. you see losses for the likes of tesla of 15%. that's yesterday. that's putting pressure on the wealth of elon musk and co.. let's look at the wealth drawdown. you even have the president trump suggesting he will buy a tesla in support of elon musk today because he so concerned about the wealth squeeze on must. he's lost about 180 5 billion, he's fine, don't worry. what a remarkable turnaround since the picture of all those tech ceos lined up alongside the president at the inauguration. we continue to watch the squeeze on the tech stocks through today as well. the opening trade will be discussing and analyzing that later. fantastic interviews including the cfo of volkswagen. stay with us for trade. this is bloomberg. ♪

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>> good morning from london. i'm anna edwards with guy johnson and kriti gupta. u.s. and e