>> good. this is bloomberg daybreak: europe and these are the stories that set your agenda. futures point to the global selloff continuing after president trump's tariff

announcement wipes close to $2.5 trillion from the stock market, the biggest decline since 2020. oil extends a sharp drop after opec-plus unexpectedly increases supply. president trump says he is open to reducing tariffs if other nations offer something "phenomenal" in negotiations. french president emmanuel macron urges companies to pause investments in the u.s. germany pushing for a more robust european response to trump's tariffs. happy friday. trading day two of this new global order as trump forces a reworking of our world economy. european futures pointing to further losses after dropping

2.6% yesterday, currently lower by .8%. the markets adjusting views around the central bank action to support these global economies with the ecb in the mix in terms of rates being pulled forward. ftse 100 futures down .3%. s&p futures after the rout yesterday closing lower. the nasdaq down by 6%. the russell 2000 dropping 6.6% by the end of the close and looking to build on that today. u.s. futures down .8%. nasdaq 100 futures dropping 186 points, lower by a full 1% after the rout yesterday of 6%. the money moves into treasuries continues across the curve. you're seeing below 4%. it is only in the 30 year where you are seeing above that. yields down on treasuries. bloomberg dollar index currently down .3% after dropping to its

lowest level yesterday on an intraday basis since 2005. brent $69 a barrel, down 1.1%. further losses after that surprise decision to put more oil on the market in the face of the risks around recession, gold at $3100, softer by .5%. money being taken out of the metal. let's cross over to asia. avril hong standing by in singapore and another brutal day for japan. avril: absolutely. that is the market that is underperforming. i wanted to talk you about how asia's stock market is not fearing as badly as wall street, but i cannot say that is the case because japan is extending those declines and to give you a sense of the de-risking, repositioning underway in this part of the world, look at the gauge of the nikkei and how these losses are the steepest we have seen since late september.

it is the drag you are seeing from the japanese lenders, another clue as to the amount of traders taking risk off the table into the weekend. the singapore stock benchmark. this is something not mentioned often but it's seen as a safe haven in the region. this gauge slipping by the most since the yen carry trade unwind. amid this investors are assessing the damage from the tariff shock for china. today, china, hong kong, taiwan markets are shut, so for that assessment let's look to the renimbi. not so long ago, dollar-china, after the tariff announcement, we saw the spike. let's see how it is at the moment. this is a head scratcher given how they downgraded china to a. this is something china has rejected. we had the likes of jeffries saying china could devalue the renimbi as much as 30% given the tariff risk.

so a bit of a head scratcher amid this why the chinese currency is climbing. we have the likes of mark cranfield saying that may be because of the spike a day ago in dollar-china, may short-term positioning. they were caught out. so this is the reaction in markets today, maybe also to do with the slide in the dollar and how that's being helpful for other currencies in the region, including the vietnamese currency, today moving sideways. there's a sense that even though asian central banks are likely to ease more aggressively there are some out performances, including the likes of the philippine peso. tom: avril hong in singapore with the market check as we see those adjustments continuing. risk off across the session. european futures in the red as investors brace for more pain after wall street suffered its worst day in five years. the u.s. president, though, says he is not word.

>> i think it is going well. the markets going to boom. the country is going to boom and the world once to see is there any way they can make a deal? they have taken advantage of us for many, many years. for many years, we have been on the wrong side of the ball, and i will tell you what. it's going to be unbelievable. tom: let's bring in bloomberg's valerie tytel with a focus on the markets and what a historic day for the readjustments we saw yesterday. give us the breadth and scale of some of the moves we saw yesterday. valerie: historic day for the u.s. equity market. the s&p 500 sliding near 5%, now joins the board of some of the worst days for the u.s. equity market in the last century, comparable to one of the worst days of the dot-com bubble, to the worst days of the gse, even -- the gfc, even comparable to

when the u.s. was downgraded in 2011. the mag seven now down 24% since its peak only back in december. also the russell 2000 index has entered a bear market, now down over 20% since its peak in january. now, sectors that have been on the move, there were two that had some pretty brutal declines, one of them being the banking sector. the kbw banking index had its worst day since the banking crisis in march diggity three. worsened by the widening of the value. a growth index having one of its worst days since march 2020, down as well. this widening of credit spreads was not just in the u.s. but global as well. >> and we have nonfarm payrolls

data later today. what are you going to be looking at when it comes to that data and comments from jay powell, separate from the data. does the fed ride to the rescue? i don't think traders even know what their pnl is from yesterday and we are heading into catalysts today. an exacerbated labor market weakening may be sooner than expected by the estimates are for unemployment to hold steady at 4.1%. nonfarm payrolls headline number 140,000. we hear from jay powell speaking if you actors after this release as the market is pricing in more cuts from the fed. it was back in january where we were cutting two cuts this year and now four. will powell echo this pessimism around the economy or repeat his lines from the press conference about how the u.s. economy is resilient?

>> president trump says he's open to negotiations, contradicting his top aides, who suggest the tariffs are not a bargaining tactic. >> if somebody said we will give you something that is so phenomenal as long as we give you something good, tiktok an example that we have, where china will probably approve a deal, we will get something on the tariff. tom: the latest now with bloomberg's rosalind matheson. some investors will say if we just get some clarity on the tariffs even if they are coming, just some clarity and an end to the mixed messages, that would be in some way helpful. we are both -- we are getting both the tariffs and the mixed messages. rosanlind: that is right.

you might have some clarity on mcdonald item, where there is nothing but penguins. they were on the list for tariffs and now they are off. territories around the world now seem to have a reprieve but there's still confusion about what exactly these tariffs are. there were some adjustments overnight because there were differences between what was announced and what exists. we have leaders lining up to try and call donald trump, to get him on the phone to get some clarity about whether they can have any kind of reprieve. as you were saying, the message yesterday through the inner circle was donald trump standing firm on this. this is resolute territory. we had donald himself say, well, if it's phenomenal, in his words, we will look into it. so leaders will try to use this window to try to get him on the phone and pitch their case for some kind of reprieve. the question is, does anybody get below 10%? it seems like 10% really is

likely to be the floor, especially for countries currently sitting around 30%, 40%, so they won't go to nothing necessarily but they might get a little bit of negotiating ground. the big one is china. you can see from that indications from donald trump -- you can see indications from donald trump that if china approves a sale of tiktok, that may be enough. tom: we have the china piece. where do we stand on the sectorial tariffs? i spoke to the trade minister in ireland who said there had not been sectoral tariffs on the pharmaceutical industry. do we assume that is now coming down the pike at some point or is that now off in terms of how the trump administration is thinking? rosanlind: it is certainly still on the table. what donald trump was saying was that he was going to do sectoral tariffs separately to reciprocal tariffs. he announced auto tariffs before

he did reciprocal tariffs. he has always said there are others on the table and that is not jazz pharmaceuticals but semiconductors, for example, as well, so he has a lot of other sectors in his sites. whether he pushes ahead and does that it is hard to say because he likes to keep these things in his back pocket. he likes to have these negotiating tools in his pocket, so maybe he uses them or maybe he doesn't. it's hard to know in this environment with the administration because, as you say, donald trump can say one thing one day and another the next and very much change his mind, but it is one sector that stands to have a significant impact if he were to go ahead and announce sectoral tariffs on pharma. tom: bloomberg's emea news director ros mathieson, thank you. 1:30 p.m. on the date upfront, u.s. -- on the data front, u.s. nonfarm payrolls, expected to be

softer. then arguably more important on a day like today given what's transpired over the last 48 hours is from the fed's jay powell, speaking at 4:30 p.m. u.k. time. how will he frame what we have seen in terms of the restructuring of this global economy and the implications for u.s. recession risks and inflation? and the nato meeting concludes. we will be hearing from nato members as they attempt to firm up their position as the u.s. looks to lean more heavily towards asia. we continue to keep across that story you can get around up of the stories you need to know in today's edition of daybreak. subscribers can go to dayb go. is a u.s. recession now the base case? we get the reaction and how to think about positioning given the ruptures we have seen across these global markets. that is coming up. this is bloomberg. ♪

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>> we really need to change the way trade works around the world. it is tariffs but don't get confused that these nontariff

trade barriers, they are the monster that needs to be slayed. tom: u.s. commerce secretary howard lutnick speaking to bloomberg surveillance after the tariffs were imposed. donald trump's rollout was supposed to reduce uncertainty for businesses, but economists say it did the opposite. some 92% of forecasters who responded to a bloomberg survey says the announcement raises risk of a u.s. economic downturn over the next 12 months. let's get a view in terms of how the markets are positioning and how to think about the weeks and quarters ahead. joan hardy -- john hardy joins us. how much further downside pressure do you expect to see for these markets given the rout we saw yesterday and the positioning today? john: that's a tough question. i think it is on everybody's mind, but if we are moving towards crystallization of these risks in the months ahead, we have some risk further on.

let's take a look at where the markets got themselves in this u.s. exceptionalism trade over the last cycle. i think there's plenty of risk that we see so far, deleveraging and outside the markets if these risks are realized, and it looks like they will be in the coming months. tom: what comes to the rescue here? i am struggling to see who or what catalysts puts a floor under these markets. the federal reserve, there's a debate there in terms of how far they can go given the inflation risks. the fiscal stimulus, you might get tax cuts, but they are very domestically focused. the rest of the world is constrained apart from maybe germany. it will be bleak given the supply chain ruptures. i'm struggling to see where the light at the end of the tunnel is at this point. john: i think we have to separate where we are now and what we are looking at in coming weeks and months and maybe quarters into what the

upward trajectory could be in the wake of that, and that is, you know, quite significant potential in the u.s. we have inbound investment, deregulation. the republicans are circulating plans of a 40% tax on earnings over $1 million so it's interesting. so i think this is just part of where we are in the cycle and i think it's down before it is up. the other side of this could be quite interesting in the u.s. i think people are very excited about the european upswing. opening up the fiscal taps. but i think maybe the markets are getting a bit ahead of him -- of themselves with these disruptions to trade the trump administration will cause, all the uncertainty there, and i think it's further down the road, so i put a question mark around some of the enthusiasm around european assets, although i appreciate with this fiscal stimulus and reallocation of

portfolios will do for the european single currency itself, which is significantly stronger as we look months and quarters ahead. tom: so it sounds like you are conservative in the near to medium term but longer-term, towards the back end of this year, it seems like you're view some of the catalysts come through for the u.s. -- like your view is some of the catalysts come through for the u.s. and maybe other parts of the world as well. john: yes. tom: where do you land on the federal reserve? we have two contrasting views from ubs versus morgan stanley, which does not see cuts at all this year. john: i think the market's assessment is fair here and we have not fully priced in what the fed could potentially do. we had that circulating that perhaps infamous term "transitory" on the impact of tariffs. i think with the fed does will be established by what the labor market in the u.s. does if we see pain in the labor market we will see cuts.

we could easily take another 25 basis points out of the current rate by the year end. we have about 100 basis priced and now. that's a base case assuming moderate -- let's say moderate stress in the u.s. labor market. severe stress, we could go even further. tom: on the inflation part, then, there's an argument that the inflation story in terms of higher prices will be more of a u.s. story than a european, u.k. or possibly asia story as well. do the central banks of europe and the u.k. have more clarity in terms of their ability to cut with lower pricing pressure? john: i think we are hitting a speed bump here in the economic outlook for the u.k. and europe. i think you are seeing the adjustment there in the short end of the yield curve in both the u.k. and europe, so i think those cuts will be realized and we have more to price and for the bank of england -- in for

the bank of england and potentially the ecb, so cuts across the board here on what the world is facing, which is the risk of not only a u.s. recession but a global recession. tom: does that mean you lean into the bond rally? there's further to go there? where do you want to be sitting? what are your favorite kind of havens at this point? john: favorite havens, when you talk about yields going lower, is always going to be the japanese yen. i have a currency background so i have both eyes on the japanese yen here. we have seen a tremendous move lower in japanese bond yields. that is not negative for the yen but a reflection of the drop in yields globally. the two year yield, talking about fixed income, the risk is further out that there is stress at the longer end of the curve. the short end of the curve for safe havens is cash, if you will, but in the currency markets, the japanese yen. if we see some panic deleveraging, it -- i

wouldn't want to call that, but if we do, i'm curious to see if we see the dollar fall back in places. not seeing that right now but i think that is quite interesting but i just put a question mark around whether there is some potential there. tom: interesting. and the dollar has not played that safe haven role at least in the near term, in recent days, given the drop we saw yesterday. what are your current assessments in terms of recession risks for the u.s.? john: you never see -- never say 100% but the markets have high odds of a u.s. recession this year and i think that's a fair assessment. we need to see that start to crystallize in the data. i'm not sure we will see that in the jobs report. it may take two or three more months of that to see that in the lagging data, but pretty secure in saying that is what we are set up for. the question is how deep and how quickly we can get to the uplift on the other side of this of

course, but i think we are headed towards at least at least -- at least a mild u.s. recession later this year. tom: john hardy, global head of macro strategy at saxo bank, thank you for your time. looking at potentially a mild recession in the u.s. more down for these markets before things turn around. south korea takes a step closer to ending a power vacuum caused by the president's ill-fated decision to declare martial law last year. that story and more next. this is bloomberg. ♪

tom: to some other stories making news. a south korean court has removed the president of korea from office, paving the way for an election within the next 60 days

, which he will be barred from contesting. it marks a potential conclusion to one of the most turbulent potential chapter -- recent chapters in south korean political history. the new leader will face challenges including a more emboldened north korea. and canada plans to impose 25% tariffs on u.s. mead vehicles. they will apply to the non-canadian content vehicles assembled in the u.s. and not on the shipment of auto parts. carney called the tariffs unjustified and misguided. >> three different sets of u.s. tariffs remain in place and will continue to pose significant threats to sses. and while they have been imposed under different premises some things are consistent. they are all unjustified,

unwarranted and in our judgment misguided. and bloomberg has learned u.s. officials have told their counterparts they will discuss plans to reduce tariffs but warned president trump may decide that number is his permanent baseline for all countries. conversations about an economic partnership are expected to continue in the weeks ahead. in investors and economists say the threat of a global trade war will tip the balance at the bank of england towards more cuts. france's president gives

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>> good morning and happy friday. i am tom mackenzie in london. and these are the stories that set your agenda. futures point to the global selloff continuing after president trump's tariff announcement wipes close to 2.5 trillion dollars from the u.s. stock market, the biggest decline since 2020. oil extends a drop after opec-plus unexpectedly increases supply. and president trump says he's open to reducing tariffs if other nations offer something phenomenal in negotiations and the french president urges companies to pause investments in the u.s. and germany also pushing for a more robust european response to the tariffs. investors continuing to wake up to a fundamental restructuring of the global economy. and european futures moderating some of the earlier losses that

had been flagged but this coming on the back of a drop of 2.6 by the end of the close yesterday for european markets. and a far worse picture for the u.s.. and the nasdaq 100 was down 6%. today, u.s. futures pointed to further losses. and nasdaq 100 futures looking to lose 101 points. the ftse 100 under pressure, down .2%. commodities feeling the pain again. let's have a lacrosse asset. the moves into treasuries have been aggressive and you see that continuing today. every part of the yield curve to the 30 year is now below for 40%. yields down again. euro-dollar was at 1.1 one, currently up .4%. the dollar index dropped, the

biggest drop we have seen since 2005. brent under pressure given the expectation that they will put more oil on the market, dropping again and gold currently at 3100. and let's get to the european response to this changed regime. emmanuel macron urging european companies to stop investing in the u.s. in response to trump's tariffs. >> what is important is that we pause future investments, those announced in recent weeks until we have clarified things with the u.s.. otherwise, what message would be sent if we had major european players investing in the american economy at a time when they are hitting us? so we need collective solidarity. >> and they are predictably a major talking point at the nato foreign minister's meeting in brussels.

and oliver crook has been following that summit for us. france and germany than pushing for a strong response to the tariffs. what is the latest? >> everyone is scrambling to figure out how to respond to these tariffs, that bevy we got from the rose garden. with the european union being hit by 20%, on the higher end of what had been anticipated. they got that 20% figure and we are already beginning to hear different things from different leaders in terms of how to approach the negotiation with donald trump. we had the retaliation from canada and will speak with the canadian foreign minister soon. we heard from emmanuel macron telling french companies to basically pause investment in the u.s.. he does not have quite the same amount of sway as donald trump does. will he be able to affect that given how much pressure he has been exerting?

and you heard from the german economy minister speaking and powerful terms, referring to the tariffs imposed by donald trump over the rest of the world in the same sort of scale in terms of the impact as russia's invasion of ukraine and i think what we will get for the european leaders is trade ministers meeting monday and brussels in order to thrash out how they will respond to this. and the other question everybody is trying to grapple with is how do you quantify these trade barriers the trump administration keeps talking about and come to the negotiation to get those tariffs done? there is no equivalent between them. this is part of the equation when all these leaders will figure out how to respond to this. we will speak to the canadian foreign minister on their approach on this and could you see more cooperation between canada and the european union in trying to respond to the u.s.? could you have a sort of g7

minus one? tom: that's why tuning into the interview with the foreign minister of canada will be important as well, to hear the answers. u.s. secretary of state marco rubio is trying to reassure european allies of the u.s.'s commitment to nato. how challenging is that given that he and his ministry should has just hit many of them with tariffs of between -- and his administration has just hit many of them with tariffs of between 10% and 30%? oliver: what you heard from marco rubio is exactly what the europeans wanted to hear he said despite all the rhetoric and reports in the media that he was being critical of, he says donald trump in the u.s. are committed to nato, but committed to a nato that takes their own defense more seriously and is willing to spend more money on their defense, and reiterated that figure. you're not sure if these are actual convictions and policy proposals or something that will pass.

this 5% gdp spend on defense seems like something the trump administration is hanging onto. he went further yesterday and said the u.s. itself will commit to 5% of its gdp on defense. i spoke to the latvian foreign minister on what he thought and the european commitment to getting to that figure. have a listen to what she had to say. >> we cannot throw europeans in the same batch and say they are not spending. this year, already commitments for 750 million. in 2024 and this year even more with the germans, germany's historical decisions, so we are actually understanding the threat, the need to respond and hearing the message. oliver: so if the new figure is 5%, the perennial question arises of how you pay for it. that will be the more complicated thing for europe. marco rubio had a few suggestions to -- on how to

pay for it. he said you have been able to build these magnificent welfare states. you may have to sacrifice them. tom: ok, all right, ok. this is one area where trump has managed to draw consensus around a view that was a bit of an outlier to start with in terms of nato members needing to spend more. that is now consensus and now many would agree he's right. we will see how that story adjusts. all crook on the ground ahead of that interview with canada's foreign minister in about half an hour. ollie will be speaking exclusively with the canadian foreign minister on the opening trade. opec-plus making a decision to increase output faster than previously announced. the timing, wow. for more, i am joined by stephen in singapore. we watched the tumble of oil prices yesterday. the two events, tariffs and then

this amazing decision to put more oil on the market. >> this is now at the market was expecting. the market was expecting a -- so this seems to be by design. they decided to triple the amount of oil they were adding to the market in may because there were some member countries that were not adhering. they were producing more than their quotas were set at. that also includes russia as well so this was clearly a shock and awe sort of event that led prices lower but it was by design to sort of say you need to stick to your quotas or you will have more pain in your future. that comes at the same time as the tariffs from the united

states, which also led to fears of a wider trade war, retaliation from the eu, but also potentially china, adding to a global trade war that would potentially reduce economic growth, and if you reduce economic growth, you use less oil and gasoline, demand drops, and that's led to the bearish environment. so that one-two punch led to oil prices falling, but if you look at the bloomberg commodities index, you are seeing across the board a lot of commodities falling, even gold. i was on the program yesterday speaking about how gold has this record-breaking run as a safe haven asset, especially with the unpredictability of the trump administration, but that was even swept up in the commodity selloff yesterday. you had copper falling, soybeans, cotton, and it doesn't seem quite done yet. it all depends on what happens over the next few days and weeks as countries respond, but clearly traders are getting rid

of their assets, either taking a profit or getting out as the future is unclear to see what it holds. >> that pressure on the commodity markets continues today with copper under pressure, gold down .3%. stephen stapczymski on the shock and all decision of opec-plus and the one-two punch. thank you for giving us the details and analysis on that story roiling the markets. brent and wti under pressure. some other stories making the news. it has been reporter that the director of the nsa, the national security agency, was fired yesterday, according to the washington post. general timothy hall was dismissed along with his civilian deputy at the nsa. the paper says the firings were advocated for by far-right activist lauren loom her during a meeting with president trump

earlier this week -- laura loomer during a meeting with president trump earlier this week. a recommendation of a bracket taxing people making $1 million or more considered by republicans. it has included a new top rate around 39% to 40%, bringing it back to where it was under president obama. bloomberg has learned elon musk's stent leading the department of government efficiency is slated to end on may 30. the white house counsel's office is in charge of determining when mosque has worked his 100 -- when musk has worked his 130 days. he is expected to remain a trump confident even after his departure. economic headwinds appear to cloud the outlook but booking site omio sees brightpoint

ahead. we will speak with the ceo coming up with a gauge on the health of the traveler globally. stay with us. this is bloomberg. ♪

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>> the deadline for tiktok to find a buyer or get shut down in the u.s. is less than 24 hours away. president trump yesterday said a deal is close but significant hurdles remain. charlie wells joins us. so the clock ticking down once again. >> absolutely. there have been a lot of potential suitors from tiktok that range from amazon to youtube influencers but bloomberg has learned that the deal has potentially -- that is potentially being taken most seriously by the trump administration involved oracle and blackstone.

and bloomberg has learned the dynamics would involve new investors owning about 50% of a spun out tiktok u.s., old investors owning about 30%. now something interesting here as well is the fact that bytedance under the terms of this potential deal would retain control of those all-important algorithms and that is a potential sticking point because the national security law from 2024 past in the u.s. bars china or bytedance from controlling those algal is him -- those algorithms. they would be licensed but still controlled. other sticking points include the fact that tiktok is expensive. there have been a lot of suitors but not just anyone can pick up the tab. and bytedance and china would need to blast this deal. we heard trump talking about how he might use tariffs as leverage but we know this is not the sort

of precedent china wants to set. they don't want the u.s. cherry picking some of their most valuable companies and using tariffs as leverage so the deadline is tomorrow. trump has signaled publicly he could expend -- extend the deadline. >> so those are the geopolitical and technical challenges. charlie, thank you very much indeed as we count down to that latest deadline around tiktok. let's get back to some of the impacts around this economy because it is not known what effect these will have on travel this summer. this is one sector we will focus on. they have told bloomberg that bookings from europe to the u.s. are so far down 25% and the increased risk of a downturn is boosting uncertainty for the tourism sector. someone with a finger on their pulse of this sector is naren shaam, ceo of the travel company

omio. what is this doing? naren: omio provides transportation across 45 countries. the u.s. is a smaller portion of our business, still less than 10% for us, but we see a 17% drop from europeans traveling into the u.s.. we are still growing about 40% plus of americans coming to europe so it is something we are tracking closely. tom: that's interesting. what do you put that 17% drop down to? naren: it's multiple factors. uncertainty. it's hard to predict. we need to understand much more on where it is coming from, what are the factors, but it's hard to predict. tom: what does the tariff regime that was announced this week from the trump administration mean for your expansion plans as a business? naren: we think long-term. we are not investing short-term. we are expanding -- currently we operate in 45 countries, europe,

the u.s. and southeast asia, six markets in southeast asia. last year, we did a billion plus dollars in sales. we are free cash flow positive so we are more investing in the long-term. i think in the 5, 10 years out, i hope this is not a huge impact. we are tracking it but we are not stopping our investment. global transport is still to hear -- transport is here to stay. that is what we are here to do. tom: so you see changes but you not bracing as a business and as a ceo for a marked pullback in spending on travel in a slower economy. naren: we are tracking it in that if you take a step back, during covid, which was only five years ago, we lost 98% of our revenue and had about three weeks of cash left, so we are coming out of something much stronger. we have the muscle of resilience that we have trained the muscle of resilience a lot -- have

trained the muscle of resilience a lot more. dollar weakening will have an impact on tourism to the u.s., to europe. oil prices will have an impact on the travel industry. so we are tracking that but we are very resilient. we are only making short-term changes to how we are investing in growth and expansion and everything. tom: you have a global expansion plan. what is your priority market at this point? naren: just a step back, omio provides the most seamless, easier -- easy to use product around travel around the world. if you think of travel, you have probably experienced this yourself. buying flights separately from trains, you as a consumer need to piece it together. we put all this in a single product, unified, where you can compare and by quite easily. we are quite large in europe now. we expanded into the u.s. and now we are launching southeast

asia in two more regions within the end of the year, but our goal is to be in 70 countries in five continents within the next three years. tom: what does ai do to your business model? some venture capitalists have told me this is the year of agentic ai. i could have an ai agent that does my travel booking for me. does that disrupt your industry, your business? naren: it is favorable for us because we built the plumbing into all these transport countries. we have 2500 partners, suppliers, we plug into. ai will accelerate how fast we grow. agentic ai is probably the most central innovation coming into tech in general but it is not just travel but every industry. we collect data and we are storing that. we are building products on top of that data. for us, i think we are looking at how it is going to accelerate. i have a goal that 80% of the whole organization needs to use ai for something by the end of

this year. it will make internal processes and consumer products better with ai. tom: you have raised $120 million in terms of debt facility. what will you be spending that on? acquisitions? if acquisitions, what are you looking to add? naren: it is something we can drawdown if we choose. looking at m&a, in the next three or four years, we want to be global. if you look at an industry like music streaming or search or alternate accommodation, a brand comes to your mind. if you think of transport globally, hopefully you think of omio. that is what we are solving for. m&a is an accelerator for us but given how disciplined we were during covid, that muscle is still there so we will go about it in a structured manner but we will look to make acquisitions. tom: thank you, naren shaam, ceo of omio. they're funny more coming up. stay with us. this is bloomberg. ♪

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>> taxes and deregulation were the three legged stool and right now the focus is on tariffs. >> as things stand now, we are headed to recession and its very clear that this is a tax on businesses and households. >> the stuff we create, it is bad for small companies. >> in the next couple months, the labor market still stays ok. >> the u.s. is going to have a slowdown, than other regions are probably going to be worse. tom: guests on bloomberg television discussing their outlook for the months ahead after president donald trump imposed the steepest american tariffs in a century. we saw 2.5 trillion dollars of market cap wiped off the u.s. markets yesterday. here's how it broke down on an

individual company basis with tech feeling a lot of the pain but banks were not immune as well. the likes of jp morgan, bank of america also being hit in terms of the market cap valuation squeeze on those tariffs. apple was the biggest pain trade yesterday on a corporate basis, the market cap produced by $274 billion, down 19% year-to-date. tesla also saw pain, that stock down about 30 percent year-to-date and saw its market cap produced by about $50 billion in yesterday's trade. let's have a look at one area where u.s. exceptionalism remains, inflation expectations. that is the white line. you are looking at u.s. two year inflation swaps. you can see the divergence in terms of expectations for the u.s. versus their counterparts in the rest of the world to that debt -- the rest of the world. let's have a look at the nonfarm

payrolls because that is later today and then you have jay powell, are giggly more important, in terms of what -- arguably more important, in terms of what he has to say. nonfarm payrolls expected to come in at 140,000. bloomberg expects it will reflect some but not all of the ruptures in the federal work force. and then you have jay powell in his comments. the opening trade will walk you through all of this, the market rout, the readjustments, how to position. the opening trade is up next. this is bloomberg. ♪

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>> good morning, i'm guy johnson. we are an hour away from the opening trade, what do you need to know?