tom: this is bloomberg daybreak: europe. happy tuesday, please of the stories that set your agenda. bloomberg learns u.s. carmakers are making a last ditch effort to avoid tariffs on low value

auto parts. donald trump's reciprocal tariff plan is set to be announced tomorrow in that rose garden. >> the numbers will be lower than what they've been charging us and in some cases, may be substantially lower, but we sort of have a world obligation, perhaps, but we will be very nice, relatively speaking we will be very kind. tom: volatility ahead, asian stocks gained snapping a multi-days selloff amid uncertainty. u.s. drifting lower after closing out their worst quarter since 2022. plus, a five year ban on running for office for marine le pen. president trump expresses support for the french far-right leader calling her conviction a big deal.

good morning, after the selloff on european stocks yesterday, some modest stability, but for how long given that announcement 3:00 p.m. u.s. time of the rose garden on wednesday from trump on those reciprocal tariffs, european futures pointing the gains of .3 percent. here in the u.k. the ftse 100 looking at 33 points. s&p futures after the volatility of yesterday dropping out 1.1 7% before ending higher with gains of 0.6%. volatility in focus, the vix rallying for the last four days in terms of an expression of course of volatility. s&p futures pointing lower by .3 percent. nasdaq 100 futures pointing lower by .4%. the superlatives come thick and fast for the recent quarter. the worst start to the year for u.s. stocks versus the rest of the world since 2000. the mag seven grouping of tech

stocks falling 17% since the start of the year. let's flip the board. benchmark 10 year yield in focus for the u.s. treasury secretary, back below for 20, now for 19. relatively stable at the moment but we will see to what extent that holds as we lead up to tomorrow, euro-dollar at 108, currently resilience around the single currency. worth noting this is been the worst start to the year for the dollar since 2017. brent at $74 a barrel, close to $75. go at a record high. we see this on a daily basis. yellow metal at 3000 114 poor troy ounce. 3100 up .6% in the session so far today. let's cross over to asia where the markets are faring better today, avril hong and singapore with the breakdown. avril: it's a tuesday turn, may be markets are optimistic that trump, when he speaks at the rose garden, is going to be very nice or even lenient, but these gains to some in the asian markets look unconvincing, given

the extent of declines on monday, remember we saw the readers benchmark hitting the lowest level since early february and some of these moves, the outperformance in the south korean taiwan gauges idiosyncratic. we have the group of companies after some of these succession fears were elite, those companies are those that are outperforming in taiwan, some merge between global foundries as well as united microelectronics lifting the chip-related stocks there, keep that in mind, flip the board again, take a look at chinese stocks because they are managing to snap a bit of that decline helps by tech, tech is actually lifting the region's gauge today overall, but keep in mind that when it comes to the data, even as we see the factory activity is better than expected, echoing what we saw one day ago, our economists have flagged that there are seasonal factors at play, so maybe don't read so

much into it, then keep in mind that when it comes to the pain in the property sector, still quite pronounced. we saw slump a new home sales. let the board again, the tariff overhang continuing to wane, not just on markets, but look at reaction to the rba leaving things and change but also flagging inflation control and geopolitical uncertainties, calling it pronounced, and even the comments from the rba governor a short while ago, not quite feeding into what traders wanted to see in terms of dovishness. we see the aussie dollar extending gains in that outperformance is coming along with what we see in the japanese yen climbed today as well. tom: avril hong and singapore and the check of a central-bank action was shown on turnaround tuesday for now as we lead up to the tariffs out of the trump administration. let's get more details because president trump is set to unveil the so-called reciprocal tara

bush during an event at the white house rose garden tomorrow. so that's the aesthetic. he had snapped -- the announcement is going to feature country based tariffs. we are told no exceptions were exemptions, we will see with the reality is. trump dismissed concerns that the levees could impact relations with washington's allies. >> are you concerned this move with the tariffs this we could push some of the united states closes allies to work with china? >> no, i'm not worried about it. i'm not worried about it. i think we have a chance of doing better with tariffs, it could help them in a certain way. i think a lot of them will drop their tariffs because they have been unfairly terrifying the united states for years. tom: let's bring in bloomberg's oliver crook for the latest. there's still a lot that we do not know about what exactly is going to happen tomorrow, but we do have some details, talk to us

about what to expect as we understand it so far. >> let's get through what we know and what we don't know. we have the official timing for the press conference at of the rose garden where we will get all of the details i have been tees for months from the trump administration. these massive tariffs with a so called liberation day where he will try to write the trade balance as he sees as a great injustice. trump has talked about this and has been one of the main crusades us -- of his political career. what we get tomorrow, we understand the thing priced in, 25% tariffs on auto tears. we expect to get it from the pharmaceutical industry. but we are looking for a detail on this the concept of reciprocal tariff, is it just getting basically to a state where you match the same levees we see from other countries or just the trump administration take a much more expansive view on this? is it something they could use as a tool to try to write in balances they see in terms of value-added tax, potential digital taxes, all of these

things will be front and center for the eu policy makers who are still waiting to basically have their own response to what the trump administration has done. they are holding back because they don't know what to expect, they try to go to washington last week to have negotiations, the trumpet -- the trump administration said they were an interesting -- interested. they are going to start to be collecting many of those on april 3. then you can get a new set of tariffs beginning on may 3, this is another conversation going on with the trump administration. tomorrow will be a crucial day, and being watched closely by eu policymakers, but also by the markets taking this -- that have been rattled by the action on the reality of the trump administration tariffs coming into play. tom: in terms of the particularities and specifics of one sector that you know well, is the auto sector, and we are hearing that there are last-minute lobbying going on from the key u.s. automakers, largely u.s. players, what is

this, is it too little, too late? what are they calling for? all of with the trump administration there have been concessions made in the past to the u.s. auto sector, there has not been a huge amount of tolerance for international automakers and what they want but the u.s. automakers got an extension from the canada tariffs in mexico tariffs, what they would like to see is less valuable parts of the car, components of a car, not engine blocks, but we are talking about this rubber wrapping around wires in these sorts of things, this is what they would like to see exempt because all of the import cost speak to the complexity of the car. they would like to see those excluded from the tariffs while still getting to the point where you are getting basically the general goal. this comes in the context of the average price of a new car in the u.s. reaching close to $50,000. it's of 21% over the last five

years and its front and center for auto manufacturers struggling to be competitive with the likes of international companies with the labor cost. this is the trump administration's big push to try to write that balance, but again, the industry wants to have that balance righted with out destroying their market and that's the concern they are trying to address. tom: the average cost of a new car in the u.s. is 50 grand. while. -- wow. 50 grand. it's going to get there quickly. thank you for the latest in terms of one particular lobbying effort coming through in the quarter picture when it comes to what to expect from the rose garden tomorrow. it was a quarter to forget for u.s. stocks. here to break down some of the highlights or low lights, depending on where you sat, is bloomberg's valerie tytel. talk us through how radically the market shift has unwound the initial trump optimism. valerie: it has been a bruising

quarter for u.s. stocks. worse performance for the s&p 500 for a few years, but thankfully, maybe some good news is that we are bouncing -- balancing flows in its positive. the s&p 500, after opening down nearly 2%, ended up in the red up .5%. helping boost risk sentiment and snapping three days of losses for the broader index. but first quarter scorecard for the equity market was not very nice. u.s. equities, if you compare them to the rest of the world, have their worst performance since the global financial crisis, this outperformance of the rest of the world versus u.s. stocks is not something we see very often. also outperformance of the quarter being euro stoxx 50, the defense rally really lifting equities across europe, and last, we gotta mention the hang seng, deepseek rally of q1 boosting asian stairs.

hang seng in u.s. dollars surging more than 15%. i have to add one more to this and this is gold continually hitting new record highs day after day. on the quarter it rose 19%. it's it's best quarter since the 1980's. we continue to hit a fresh record overnight, yellow metal up .6% to trade very close to 3150. tom: our team on m lloyd writing that there is further to go for the yellow metal. no reason why it can't continue to add to the continued records that we've seen. bloomberg valerie tytel with the breakdown of the markets last quarter and where the gains have come through in terms of that safe haven. to the politics of france, what a decision and what an outcome because french far-right leader marine le pen has lashed out at the decision to bar her from running for elected office for five years. she and her national rally party were found guilty of embezzling more than 4 million euros of eu public funds to finance party operations in france.

she has told french television the decision effectively eliminates her from the 2027 presidential race. >> i think the judges got it wrong, i think they chose to ignore all of the explanations that were given because in the very first hours of this trial, i had understood that the court was biased against us. i did not think that the magistrates would go this far against our democratic process and interfere this much with the choice of the french. let's be clear, i have been silenced, but it's the voice of millions of french people that have been silenced as we speak tonight. tom: let's get the latest with bloomberg's caroling in paris who has been following all of these dramatic events for us on the ground. what else has the leader of the national rally, marine le pen been saying on the results i have come through from the courts in france? >> you saw these pictures from earlier in the day yesterday

when she was leaving the courtroom early before the verdict was pronounced. she looked exasperated at the judges ruling and when she came last night, the sound bite that you just heard, she looked very competitive. she had the look of someone who's not going to give up, even though for many out here, it also means denial. she said she was very far from leaving the political scene, that it was a disastrous day for french democracy. she repeated that the court ruling was a political decision. you have the world biased. she said the judge clearly wanted her from the beginning to pan her from running in 2027. when the case, in marine le pen's view, is just some sort of

administrative disagreement without any personal enrichment. and asked whether their current president of the national rally was a plan b, marine le pen said he was a great asset for the party, but they didn't want to use this asset to early, too soon. meaning that at this stage, she wasn't seeing him as a replacement for the next presidential elections. her very thin hope, a very thin chance of running is that of course she is going to appeal, usually an appeal in france takes 18 months i've been two years. the presidential election should happen in april, 2027. so in just two years from now, and she couldn't register as a candidate up to one and a half months before the first round. she still hopes there is a chinese chance that the appeal could possibly take place before

the elections. tom: what other reactions have we been hearing domestically and internationally, this verdict? caroline: if there was a sense of sitter ration across the political spectrum in her camp, but also outside her camp here in france, even some politicians from the center right saying they didn't really understand why she wouldn't be able to run. of course macron was very much we followed the judges decisions, we have to respect the justice citizens, we have international reactions from abroad and from donald trump who can have compared himself to marine le pen, who saying it was a big deal and it kind of reminded him of his country because there is a little bit of trump of vacation of french politics at the moment. she's playing the victim and

remember donald trump still managed to get a second term even with a flurry of criminal cases against him. we had a lot of international reaction from the far-right leaders across europe. we heard from the dutch far-right leaders saying he was shocked, and in hungary, the hungarian prime minister posted quickly on printer -- posted quickly on twitter. tom: coming up, as traders try to position ahead of trump so-called liberation day, we are going to discuss tariffs, market positioning and get some analysis. stay with us. this is bloomberg. ♪ (♪♪) ♪ three little birds ♪ ♪ (steel drums playing lightly) ♪

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tom: the trump administration

mix messaging on what new tariffs will be unveiled and how they will be announced has traders struggling to position ahead of one of the biggest unknowns in recent months. for a gauge in terms of how to position amid all of this insurgency, let's bring ahead of investment strategy at rbc wealth management. good morning, thank you for joining us, what assumptions are you in the team at rbc making about the tariff plan of wednesday, whether or not this will be a clearing event or just adding to the insurgency. >> it might be a bit of both, we do expect some fairly large tariffs to be imposed on april 2 or shortly afterwards with the hope that they will be scaled back within six months after successful negotiations. on the messaging around the tariffs is going to be very important to dictate the reaction of the market if,

surrounding tariffs are benign, we could very well see a relief rally given that so much of the bad news is discounted in prices, however, if the threats are more menacing and suggest there is more to come, there could be a further let down in markets, if a particular reciprocal tariff includes an element of vat tax, that would be really the worst case scenario and we could see the market reaction against that. tom: there is a possibility for a relief rally given how much it has been adjusted around the terror threat. what would give the markets the ability to sustain or at least return to a rally that is sustained? what ingredients we need to see for that? >> to ingredients, basically one is the scaling back of tariff,

and the other one is something the market cannot discount yet but it's closer to the midterm elections because all this orchestrated insurgency is fine at the moment early in president trump's term. however, as we approach midterm elections, we do need to have the economy back on track, we do need to have a quieter time, so the market which is after go through this time of insurgency and hope it's not too negative. tom: are you finding assets that are being mispriced, are you finding opportunities that are rising as the tide goes out on some of the most popular trades? >> we think it's very important to be agile and look for market dislocations. one area, which is of particular interest to us as japan, clearly the momentum has gone out of trade, but we see valuations are

attractive, earnings are coming through and incorporate were firms are also a earnings. for us in equities, it is our main overweight, we prefer to have neutral positions elsewhere because that gives us a time of great uncertainty and flexibility to take advantage of these dislocations. i would point out that there are other ways to get performance, one of which is too diversify to reach out for asset classes, which are not linked to the business cycle, such as longshot commodity strategies were many commodities are driven by the weather, agricultural commodities in particular, or an emerging-market fixed income unconstrained strategies to really take advantage of idiosyncratic opportunities as they arise. tom: so those are some of the ways to diversify the portfolio given the risk that we are seeing in the broader markets.

how are you thinking about europe, that divergent story has been there, in recent days it started to wane in terms of the divergence between european stocks versus their u.s. counterparts, how are you thinking about playing the tariff risk versus the fiscal impulse of a rearmed europe? >> at the moment we still think that the fiscal insult -- impulse will outweigh tariff worries, but of course unbridled enthusiasm has really given way to some skepticism with respect to the implementation of these very ambitious plans, and with good reasons. because these very large spending programs often run the risk of running behind her delays and perhaps misallocation of funds. however, having said that, we think that the overall direction that europe has decided to take is very promising, and while the

lack of investment -- and the lack of growth used to really grow back -- go investor interest, we think the fiscal impulse has really changed the story. so, we will not look at where the index may be, but we would really focus on stockpicking for that region in particular being selective is very important and we look for global leaders who happened to be listed in europe, technology and health care in particular. tom: technology and health care, head of investment strategy at rbc wealth management with some analysis and foods on how to position given the volatility we see across global markets, thank you for the insights. bloomberg learns howard lutnick signals he may withhold grants promised to chipmakers to push them to invest more in the u.s. we bring you the details. this is bloomberg. ♪

tom: bloomberg learned the u.s. commerce secretary could withhold chips and grants as he pushes companies to expand projects in the country. the goal is to generate tens of billions of dollars in additional investment without increasing the size of federal grants. he wants other chipmakers to follow tsmc, which recently announced a new $100 billion investment in the u.s. coming up, as trouble stocks light in part due to a creek and u.s. consumer, wil

the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives.

it brings people together in meaningful ways.

tom: good morning, this is bloomberg daybreak: europe, i'm tom mackenzie in london, these are the stories that set your agenda, bloomberg learns u.s. carmakers are making a last-ditch effort to avoid tariffs on low value auto parts, dollar trump so-called reciprocal tariff's plan said to be announced tomorrow in the white house rose garden. >> and numbers will be lower than what they have been charging us, and in some cases, may be substantially lower, but we sort of have a world obligation, perhaps, but we will be very nice, relatively speaking we will be very kind. tom: turnaround tuesday, asian shares gained bouncing back from a multi-day set off, but a u.s. futures drift lower after closing out their worst quarter since 2022. plus, a five year ban on running for office for marine le pen, president trump expresses support for the far right calling her conviction a big

deal. european futures set for a slightly more positive session it seems, flagging gains of .4% after losses of 1.5% on monday for european stocks. volatility and uncertainty around the tariff regime is still there. ftse 100 futures pointing to gains of 36 points higher by .4 percent. s&p futures after the choppy session of yesterday pointing lower by .2%. nasdaq 100 lower by .2%. u.s. stocks having their worst quarter compared to the rest the world since 2009, flip the board and have a look across asset as we lean up to those reciprocal tariff stateside, focus on the yield curve as well, benchmark 10 year below for 20 of 419, relatively stable in the session. euro-dollar at 108. the dollar having its were start to the year since 2017. brent is close to 75 dollars per barrel, up .2%. gold that are fresh record gaining some .10%.

closing into 3100 50. as canadian travelers shunned the u.s. in favor of east asian destination like japan, china and south korea amid the trade tensions with america, what will the impact be on the tourism industry as president trump's tariffs take hold. for that conversation, let's bring in oliver crook is standing by with a guess for us with insight on that sector. oliver: it seems that everybody is affected by the trump administration and we are gearing up for the summer season, which is the high season for europe in terms of travel destinations for hotels and airlines. joining me is the ceo. thank you for joining us here in berlin today. as we face the summer season, we start to get a taste of it these last few days, the sunshine, what is the picture for consumer and demand amid all of the huge

uncertainty we see across the world, is a positive for the tourism sector? >> it is positive. the last 90 days it's a pure replica of the strength of the last quarter in 2024. we've been up for percent-5%, which was unexpected stronger than we felt, and we have this same beginning for the first few months of the year. so it looks pretty good, very solid despite geopolitical decisions. what we thought we were looking for the summer is strong at 3-5% but we see a pretty strong deceleration across atlantic. so the forward booking from europe is modest 25%. oliver: in the first quarter? let's know, for the summer. oliver: what do you attribute that to? what is it that is? sebastian: probably people trying to go to canada instead

of america. it's probably anxiety to go in an unknown territory even though i want to welcome all the americans, please come to paris, come to euro, you will be more welcome than others, and i'm sure the europeans will be welcome in america. oliver: we've had high-profile reports in the united states were tourists are detained at the border for up to 2-3 weeks sometimes. sebastian: probably 1020 people. we don't need any of that today. oliver: in terms of the currency exchange rate, it has been unstable. year to date it's almost five percent versus the dollar. how is that affecting demand in europe? sebastian: when we have the strong dollar, a lot of americans went to paris. the furor between the 105-1 10, you won't have any noticeable effect. probably between the canadian dollars on the u.s. dollars.

i never think about currency. this is one of the worse, i don't have any control over it so i will adapt to currency. oliver: you have such a global business in a global footprint, what is the absolute strongest market, where you see the greatest euphoria across the world? sebastian: everything is solid across the world because we have emerging middle class rising. it will be sustainable for the next 10-20 years. some are now, the boom is southeast asia, laos, vietnam, indonesia, malaysia, middle east, egypt, so this is where we see a very strong double digit growth, in some cases, above 20%. oliver: another part of the world being affected is the corporate world. we understand by donald trump we get letters out from the u.s. embassy from paris and french companies imposing upon them,

dissolving d.e.i. initiative, that sort of thing. how do you as a ceo of a major company that needs to operate globally deal with those pressures? i doubt you have got a letter? sebastian: whether i expect to have it, we will know soon enough. you know when you run european headquartered in paris company, you just have to lead by who you are, your bylaws and your purpose. a lot of people, culture, diversity is part of it. so we shall not be budging, this is part of who we are and we are proud of going that way. and it's not discriminatory at all. oliver: i would like to talk about the luxury traders. increases lead space for tourism. today is the maiden voyage of one of the orient express. talk to me about how it is moving from the hotel industry into the train industry in

launching this extremely high luxury -- >> the more you travel, the more you want to have, you want a feeling of sentiment and to go back. it's all about what you will be discovering and people want to 360 experience. they want to be out of the world of the hotel. rich people forgot about. just don't kidnap that guy because he will stay with you, he's going to go elsewhere. so the train, the hotel is the same customer will probably do a 10 day journey will go on a train to rome and spent two days in a hotel and then he will go to croatia and you are going to remember that for the rest of your life. oliver: two questions, how different is it running the train and hotel business and what have you learned about those things? sebastian: it is a super complex industry. train, probably more so. because there's a lot of expertise being built and still

existing in shipyards. train, you deal with european all rights, they don't like each other. you need a certification. it's different in terms of logistics and the routes in time. we are going to succeed. oliver: how much is it going to cost me to spend 2 -- 10 days on the orient express? sebastian: it's not expensive, it's a lot of money. it's probably $8,000 a night. if you go on the ute, it's $10,000 in i. -- $10,000 a night. oliver: so -- thank you for your time. chairman of luxury train. i'm still in full effect but the trump administration and the various impacts of having for business across the world. tom: the line that stood out as well as you booking the next holiday, was a 25% drop for european travelers to the u.s.

oliver crook with the interview from the ceo. great stuff. some lines crossing right now when it comes to the carmaker. they pushed into cars in recent years. xiaomi. that start dropping 4% in the session. this on reports that the police are investigating a crash involving a xiaomi su seven vehicle encountering a serious traffic accident on the expressway and the shares dropping on the back of that. some of the higher end su seven cars produced by xiaomi do have an autonomous driving function. no doubt the authorities will be investigating that as well, if that was initiated. that detail still not clear yet, but it does have the ability. shares in that company dropping on that. food inflation, switching focus. food inflation in the u.k. hit a nine month by as the government faces pressure over living costs. they say food classes climbed

2.4% in the year to march faster than the 2.1% increase in the year previously driven by rising prices of stored covered staples and alcoholic drinks. this is the households higher costs for energy, water and local taxes with energy price cap being lifted from today. institutional shareholder services iss is urging investors to reject goldman's $80 million retention bonuses for its top two leaders at an annual meeting. the proxy advisor criticize the incentives for ceo david solomon and president john waldron, accusing the board of poor practice adding new incentives before prior program is finished. u.s. president donald trump expects russia's vladimir putin to follow through on striking a cease-fire agreement will accusing ukraine of attempting to negotiate an economic deal with the u.s., renegotiate an economic deal with the u.s. that's after the leader

threatened to impose secondary tariffs on russian oil. >> you said over the weekend and sensed frustration with them, how serious are you about imposing oil sanctions? >> i want to see him make a deal so we can stop russian soldiers, ukrainian soldiers, and other people from being killed but mostly it's russian and ukrainian soldiers. i want to make sure that he follows through, i think he will. i don't want to go secondary tariffs on his oil. it's something i would do if i thought he wasn't doing the job. tom: let's bring in bloomberg's and news director ross matheson. we were talking about the pressure that trump seems to be putting on putin for the first time in that kind of manner. now it seems that the pressure is back on ukrainian leader, what is the understanding of how the dynamic is playing out? >> just wait 24 hours in the tune changes again. he is now being criticized in

the ukrainian -- volodymyr zelensky says he is dragging the chain on this investment deal. the draft of the deal seated a lot of effect over ukraine's economy and investment future into the u.s. ukrainians are looking at the draft deal, sending it back with their own requests, including that the u.s. put in more investment itself. because right now it doesn't seem to involve any u.s. investment. that negotiation is going on and that is going quite slowly because of the massive deal to sign for the future of your country and its economy. now donald trump is turning his attention there. but, it's the same thing we talked about before, that sense of frustration. i want to get to a full cease-fire here and i want to do it fast. i've got ukraine argued over the adverse bit deal and vladimir putin going so on conversation so we don't have any

negotiations about a full cease-fire on the ground of ukraine. it's a start of april and there's nothing that much to show for it. it's about donald trump being frustrated at the pace of things in urging russia and ukraine the speed up. tom: we get details from president trump about his potential first foreign visit in his new presidency, his second term. what we know about that visit? >> is going to saudi arabia possibly next month but also floating that he might tack on the uae and qatar pooled it's interesting he chose that region for a number of reasons. one is that saudi arabia, the uae and others have been very quick to promise to send a lot of money in terms of investment into the u.s. i read the room very carefully and quickly on that. they are promising substantial investments into the u.s. perhaps a chance to pin that down, but also to say thank you to those countries, but it may,

for the saudi arabia visit is that out of the realm we could see a summit between donald trump and vladimir putin, saudi arabia has been talked about as a possible host for that summit and that's where the russia-u.s. in the u.s.-ukraine talks have been going on. so it's not out of bounds that may be of things do progress that they are at the point that donald trump was the sit-down directly with vladimir putin and that could serve a double duty. one is to spend time with saudi arabia, the uae and qatar and particularly the saudi de facto leader, mohammed bin salman, who is a key player strategically in the region. but also sit down with vladimir putin. tom: and alina is playing that neutral broker role, that may be how they characterize it in riyadh. thank you for the details on what could be the first foreign visit by president trump in his second term in the latest when it comes to his views on both ukraine and russia as he continues to push for that cease-fire.

coming up, switching focus to artificial intelligence rapidly advancing in continuing the innovations on almost a daily basis. regulators are struggling to keep up with the pace of the innovation. we will bring in the ceo of jitter bit, bill connor. an integration platform with something of a global reach. that conversation coming up. this is bloomberg. ♪

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tom: as a models like deepseek and manus emerge from china, there is growing concern over securing national interests. this is ai models bringing broader security risks. for more on this in the demand for how ai is being adopted across the enterprise space, let's bring in bill connors, ceo of judah bit.

it provides a platform for integration and app development automation for enterprise clients and scott that global reach. thank you for coming to the studio. good morning. what are you seeing in terms of demand for jitter bit products in an environment where growth is slowing and we see those geopolitical overhangs. bill: enterprises are looking at ai two ways. one for productivity gains, but also to make a difference in the business. about 99% of the companies added ai project. 85% of those didn't have a great outcome. and it's interesting when you start looking at it, 50% are concerned with security. your opening,. a third are looking to the future like a gen x, where ai is next-generation. tom: is there a mismatch between expectations and being able to deliver on the bottom line? bill: i think people look at ai

is a silver bullet, technologically, and want to deploy it. we see businesses think through what they want to use it for and how to use it to change their business, that's where it's being successful. tom: i want to get to the cybersecurity piece, but what are the priorities for you and your leadership role as ceo in terms of growth of this business? bill: it was important for our customers to have an evolution. we are a low code software platform meaning it's not the old code, it's halfway between it. ai gives an opportunity for now, not just highly technical people, but line of business or business experts to use ai to do what they can't do because they are not coders. so our whole focus has been infusing ai into our code so a customer can go either way. tom: what industries are proving the biggest upside in terms of growth potential? bill: every industry has unique

opportunity to take advantage. she is different if you are in trouble, which our last person was, or if you are in manufacturing or retail. and i think that's the point. if you try to apply ai just as a tool, you are going to have failure, usually. if you try to apply it for where you need the business change in process improvement or less skill, that's where you will be successful. tom: you have to be valuable in terms of how you apply it. just given your background and cybersecurity, what are the hackers doing with ai tools and does cyber and defenses, who wins the race is in terms of the catch up in terms of security systems? bill: it is a cyber arms race. both for good and for bad. the bad guys now can use it to look for exploits that are a lot easier to find with ai tools than they were before. the good news is, the good guys are using it to help protect

against those holes that they might not have seen before. tom: what do you see in terms of the jobs intact, do you see, internally, will you see a reduced headcount as you push out as you integrate ai into your own company? bill: you will see reduction of people in certain areas but you will see productivity in a different resource that you could take advantage of. ai will take over rudimentary things, but it will allow all of us to be more productive with our day job. tom: thank you for coming to the studio as you visit the team in london. bill connors, ceo of gender bit with a focus on ai integration in trying to close that gap in terms of mismatch. terms of expectations for what it means were bottom. southbank is sinking -- seeking a loan is much as's 60 point $5 billion to help ai investments. talks with banks are in early stages for a bridge loan with a

tenor of 12 months. we are told the money may help softbank lead a $40 billion funding round for openai. that company valued at $300 billion. plenty more coming up. stay with us. this is bloomberg. ♪

>> everybody is looking for a final piece here, this is going to take time. not unlike a lot of the other policies that have come out this year. this is what we signed up for. i don't think so far with the president has done has really been surprising. all of the policy changes so far have been growth negative. tom: morgan sailing chief u.s. equity strategist mike wilson speaking with a focus on tariffs as we lead up to the decision tomorrow from the white house

and the rose garden. here's the view in terms of where we could end up. tariffs right now, broadly across the u.s. on goods coming into the nation currently at around 10 point 75%. that's where we are at now. already at the highs we see now. you have to go back to world war ii to see these levels of tariffs in place. where you get to depending on the different scenarios but this is the calculation from bloomberg economics, potentially is a tariff of 35% on average across imports into the u.s. night -- u.s. even on that tariff act, and that would be unprecedented if that scenario comes to bear from bloomberg economics. let's have a lookout how this is all impacting news on the u.s. stock market given that challenge that we have just seen. you seen david with goldman sachs reducing his target for the s&p by the end of the year. he did it twice in march. now to 5000 500, flagging recession risk, flagging the tariff risks as well. city suggesting -- rbc capital

markets suggesting if you get below 5000, you could get a 20% reduction for the s&p 500. let's have another look in terms of how things are shaping out in the earnings front because what a different story we look out in terms of earnings expectation. the yellow line is your. early expectations of european stocks outstripping those of the u.s. we will see if we get the details on that when earnings season kicks off down expectations. that's fiscal stimulus from nations like germany will prove supportive. plenty more coming up. the opening trade is up next. stay with us. this is bloomberg. ♪

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>> good morning, i'm anna edwards alongside creepy goober -- kriti gupta.