>> good morning, happy thursday. these are the stories that set your agenda. markets been a low interest rates after report president trump could be just months away from naming his choice for the next chair of the federal reserve. tech stocks get a boost as nvidia is an all-time high on renews confidence that the ai

arms race is set to continue. plus donald trump says the u.s. will meet with iran next week as he celebrate success at the nato summit but threatens higher tariffs on spain. tom: let's get to the market action, it's really about the dollar story. european futures up .10% after european stocks closed lower by .7%. how it will work out is the key question. but we are counting down to the deadline, july 9, in terms of european discussions and others about the terrible regime.

the bit of a flat close for u.s. stocks yesterday. the nvidia story is front and center in terms of the ai demand. it's now the largest stock by market cap stateside. let's look cross asset, the dollar is under pressure again, the euro is that -- is up .10%. 10-year gilts coming down again in terms of yield slower, a similar move to yesterday on the benchmark, the wall street journal reporting potentially president trump could pull forward his announcement to september for the next fed chair, creating potentially a lame-duck scenario for fed chair powell. a second day of gains on brent, of .4% but keep an eye on the middle east.

gold is flat now on that safe haven. in terms of what is percolating to the asian markets, a big focus in on kong. let's crossover to minmin low for a check on that story and the broader asian market moves. >> the weakness in the dollar has been impacting the hong kong dollar as well which has been trading for a while at the higher foundry of the permitted trading range. that prompted the hong kong managing authority to bite $1.2 billion u.s. of local currency. a month ago we were at the opposite end of the range. injecting tons of liquidity into the markets here, that has driven down the interest rate. we were not far but today we saw a little bit of bump today

because of the intervention and because of the weakness here, the interest rate differentials between the hong kong and u.s. dollar led to the carry trade taking hold because we've been seeing one the most optimal carry trade's last month and that continues to put pressure on the hong kong dollar. that is the currency story, flipped the board and look at how asian markets are doing, the benchmark has been trading higher today led by the nikkei to 25. the big story is nvidia hitting a record high. things like sk hynix leading gains and lifting the taiex as well. the kospi seeing profit taking given that it's one of the best-performing indexes here in asia, up about 27% year-to-date so far. look at how chinese and hong kong stocks are doing on the chinese on shore stocks, not a whole lot of movement and

drivers here. but watch the hong kong property index at the bottom of your screen, down 1.6%. that's because of the intervention driving up interest rates and dragging down the hang seng index as well. tom: a great breakdown of what is happening across the asian markets today with a focus on the de facto core central bank. markets, coming from president trump that he has a short list of candidates in mind to succeed fed chair jerome powell. wall street journal is reporting trump could reveal the next central bank chief i september or october even though his term runs until may of 2026. some of trump's allies are pushing for scott bessent to get the job. he took another jab at him while

speaking at the nato summit yesterday. pres. trump: i know within three or four people who am going to pick. he goes out pretty soon, fortunately, because i think he is terrible. we have no inflation, we have a tremendous economy. tom: let's bring in valerie for the market response to this, talk us through how markets are thinking in terms of repricing over a more dovish fed if we get this announcement. >> hearing trump talking about the three of four names he has shortlisted, the ones that are currently in the mix in the markets are a former fed governor, he was considering for treasury secretary early in his term. the current economic council director, where the key backers of the trump economic agenda come and scott bessent we've heard about quite often to be

these are popular names in the mix, all of them seen by the market is being dovish and supportive of trump's economic agenda. that has led to dollar weakness, treasuries rally is repricing more dovish fed chair coming next year and this dollar weakness is leading currencies to have quite a fantastic session overnight. i'll talk about how we've seen the euro-dollar reach someone 17 handle, that's not something we've seen since 2021. we sell cable reach the highest it has seen since 2021. so it is igniting another round of dollar weakness. we are on quite a slide, a four day losing streak for the bloomberg dollar spot index, down over 1%. this is key because the dollar had been supported by the worries in the middle east and it is coming to a swift and this

week. tom: we are getting details around potential changes in the capital requirements for the big banks in the u.s.. to what extent they will welcome these potential adjustments around these rules. >> the federal reserve voted yesterday on this proposal that was widely leaked to the media a few weeks ago. they want to lower the slr by about one point five percentage points. there's no carveout for the treasury market. as something maybe the intermediaries did want to see. there were two dissents on the vote, those both claiming the benefits to the treasury market are not outweighed by the broader risk to the banking system by lowering tier one capital by this month -- this much. but the fdic the occ, the other two important banking regulations have released parallel proposal so it seems to be all three regulators are on

the same page on relaxing the capital rules. tom: thank you. and how the markets have been digesting the news around the potential announcement of the next head of the federal reserve. eu leaders meeting in brussels today for crucial summit. on the agenda, ukraine and the middle east and that meeting coming right after nato leaders agreed to increased defense spending to 5% of gdp in a win for u.s. president donald trump. one nation came under fire from him for holding out. pres. trump: spain is the only country -- are you from spain? congratulations. i don't know what the problem is. we are negotiating with spain on a trade deal.

we will make and pay twice as much, and i'm actually serious about that. tom: that threat from president trump put spain's imax under pressure with the stock market seeing its worst performance since april. let's go to oliver who is covering the nato summit for us. breakdown the details with the higher directed at spain -- the ire directed at spain >>. there is a sort of new paradigm of 5% of gdp that will go toward defense spending. means closer to 3.5%. still we are talking about on average more than doubling the defense budgets across europe and that will make some difficult decisions for number of governments, namely ones that really want to preserve their welfare state. that will speak to a number of

issues these countries will have across the board. that being said, we think about moments in our coverage, when it's going to be a historic moment, shifting the priorities for the narrative going forward. what we got out of the nato defense meeting is probably one of those moments. we will have to see a fundamental restructuring of how governments spend their money and how industry is situated all across europe. that begins yesterday, going forward. i spoke to the president of finland moments after the decision was reached. three years before he was not president, he had retired from politics. finland was not a member of nato. he said if you had told him, he would've told you to go in see a doctor. something a few years ago or even six months ago it was considered inconceivable.

tom: and now the action moves to the e.u. leaders meeting in brussels where you are. >> the euro is doing exceptionally well against the dollar. i think we are at the highest level, at a number we have not seen in a very long time. the european leaders will mostly be focused on trying to get resolution on these trade negotiations with the united states. things are not going terribly well and we are two weeks away from that deadline of july 9 we get 50% tariffs imposed by the u.s. on the european union in the absence of a deal. some say they are imposing unilateral demands that are not necessarily focused on trade. the e.u. leaders need to have a

conversation about how they're are going to approach this. some member states that even if you get the baseline 10% terror from the u.s. that would be enough to provoke retaliation from the e.u.. that worries other member states to say i vast, decent deal is better than no deal at all. that will be one of the big debates as they assemble in brussels. tom: ahead of that e.u. leaders meeting. oliver has been speaking to the president of finland who told him that the nato summit was a great success. he also said the u.s. president should be pleased with what he has managed to achieve. >> in my intervention around the table there, i said that had someone tell me three years ago that finland would be around the nato table and that we would be spending 5% on defense, i would've said, go see a doctor, but here we are at years later. i think this meeting was

historic for at least three reasons. we basically went back to the basics of what the alliance is all about, going back to 1949. we increased our defense expenditure to pretty much cold war types of figures. it's more balance and probably more european. i think the outcome was a great success for the whole alliance. >> maybe some of the countries are reticent, like spain is trying to find a way to delay that meeting. >> it is solid enough. you set a target and after that you review those targets through capabilities every year. in technical terms it is called ndpp. i'm convinced the alliance is secure in the military staff in general will make sure the member states do their part.

>> what was your impression about what donald trump's feeling is about nato? >> my interpretation is that the president was very pleased, and he should be, because he has pushed a lot of the allies to increase their -- defense expenditure and find a new balance. and coming from a small country bordering russia, i am also please. the question about article five is a non-question. it is all for 1, 1 for all, and we are all committed to that. >> the situation in iran, whether the nuclear capabilities were fully obliterated. have you seen any intelligence reports that reject that at this stage? >> i think the main take away from that attack was that it then brokered a cease-fire. that is what we are focused on right now. then it is up to the iaea to

assess what the destruction level of the nuclear capacity of iran was, but this wasn't really discussed around the table apart from the big picture that the strike had been a success. tom: the president of finland speaking to bloomberg's oliver crook. nvidia it rising to a record on bullish comments. is the rally sustainable? we will dig into that. this is bloomberg. we are getting granular on ai with the ceo of foreign most valuable european startups with the big focus on ai. that conversation coming up later in the show.

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tom: welcome back to daybreak europe. nvidia shares rising as achieving theft -- ceo reassured investors the demand for artificial intelligence ships remains. what is behind the latest rally? nvidia is up 60% since april. yesterday was another propellant, it was up 4% on the session >>. >>the question is, is this sustainable? is it some sort of relief? rally the question is, can this continue? we got these bullish comments

yesterday but of course the ceo is going to expect bullish comments about the performance of the company. there is evidence of some fundamental ballots for nvidia that could keep the rally going. new look at some of the earnings reports we have been able to digest over the past couple of weeks and some of these big tech companies, those represent 40% of revenue for nvidia. what we've been seeing is the bit on ai is really strong, bolstering nvidia. we have seen price to earnings for nvidia is actually pretty attractive. it's about 31 times forward earnings for nvidia. compare that to the nasdaq 100, that is 27 times. they are close, despite expecting significant growth for nvidia, and then thinking about who owns nvidia. when you compare it to

microsoft, it's 91%. there are all these features in the market right now pointing to the fact that there could be -- we know ai is growing but is the fundamentals under the hood that are helpful here. tom: becoming most valuable stock in terms of market cap. we seem to be locked in in terms of the spin on ai. it seems like it suggesting it will continue in 2026. what is a story with micron? >> this has been wall street's favorite chipmaker, the best performer in that philadelphia semiconductor index. yesterday the share basically went for a ride. i think it will be a familiar story for any high achieving honor student, when you come home with a really great report, you beat expectations on

multiple fronts, you show the promise of growth, but it is just not good enough. that is basically what was happening with investors yesterday. but the growth prospects, especially for this high bandwidth memory that is so important for ai, they just didn't think it was good enough. tom: i like that we just got a window into your previous life as a student. not quite cheating but never quite good enough. thank on the story around nvidia and mike ryan. coming up, a sneak peek at a direct rival to teslay's model. that is next. this is bloomberg. ♪

tom: welcome back to daybreak europe. president trump tariffs are putting unprecedented levels of stress on chinese manufacturing. hout one toy factory is dealing with the on again, off again trade. >> these game sets are just some of the toys made in his factory and shipped to the united states and around the world. manufacturers are rushing to ship the goods as quickly as possible to avoid president trump's tariffs on china. >> the impact on our industry is big, especially for companies like ours where the majority of clients are based in the u.s. >> america's largest toy maker, mattel, has warned tariffs in china could lead to higher prices for consumers.

pres. trump: they said we are going to try going somewhere else. that's ok, let them go, we will put 100% tariffs on their toys and they will not sell them in the united states which is their biggest market. >> it has filed a lawsuit against president trump that he exceeded his presidential authority. some are looking to move facility student southeast asia to bypass the tariffs. >> we are establishing a new manufacturing base in vietnam which is expected to begin operations in july. >> he says for now his employees are working overtime, taking advantage of the u.s.-china peace. tom: some other stories making

the news, xiaomi is set to unveil his first electric ev today. it's a direct competitor to the tesla model y. shares have surged more than 60% this year. shares of companies linked to new york city early state fell after the shock win against andrew cuomo in the democratic primary for new york mayor. he has promised a rent freeze in the city as well as free childcare and cheaper groceries in government owned shops, much of it financed by tax rises on the rich. shell has denied a report that it is in active talks about buying rival bp, saying no discussions are taking place.

bp erased almost all the games later in the session. and the bid for the primos chips maker faces eight setback over concerns the largest packaged food deal in almost a decade could thwart competition. he couldn't priest -- increase his bargaining power. we will scrutinize how it could lead to higher prices at the checkout. there is plenty more coming up. stay with us.

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that i -- tom: good thursday morning, i'm tom mackenzie in london, these are the stories it's at your agenda. markets bet on lower u.s. interest rates after report president trump could be just

months away from naming his choice for the next chair of the federal reserve. chips back on top, nvidia reclaims its place as the world's most valuable listed company. already in confidence the ai boom has further to run. donald trump says the u.s. will meet with iran next week as he celebrates success at the nato summit but threatens higher tariffs on spain. european markets closed lower by 7/10 -- .7%. spanish stocks taking a hit on those comments from president trump. european 50 futures are pointing modestly higher by .10%. ftse 100 futures pointing to losses of .2. we will hear from andrew bailey later today attending the commerce summit meeting later in the day. s&p future stateside looking to add .10%. despite the activity around nvidia back on top is the most valuable company by market cap stateside. nasdaq 100 looking down 38

points. the focus on dollar weakness yields down on the reporting around trump in this potential announcements. potentially as early as september for the next fed chair. you are seeing markets repricing. expectations around the fed on the back of this news. now more than 60 basis points priced in by the end of this year. close to 25% chance of a cup for july according to market prices. u.s. benchmark 10 year is yielding 426 down to basis points. euro getting a lift up .2% for the single currency. brent stronger for the second day of .3% and go largely unchanged. president trump said the u.s. will meet with iran next week while casting doubt on the need for a diplomatic agreement on tehran's nuclear program. trump continues to insist that last week's u.s. strikes on iranian nuclear facilities have obliterated them. he says that means a diplomatic agreement may not be necessary, even though iran has signaled its ready -- its readiness to

resume talks. >> now this incredible exercise of a merck -- american strength has paved the way for peace with with a historic cease-fire agreement late monday, we call it the 12 day war. spoke to a few people, i guess that just sounded like the right name, it was a 12 day war. and we think it's over, i don't think they're going to be going back at each other, i don't think so. tom: joining us now is joumanna bercetche. what are the u.s. next steps for diplomacy with iran? what could we expect if they hold these talks next week. -- next week? joumanna: president trump spent a little bit of time at the nato press conference talking about iran and giving an update on the situation. he did mention that the u.s. -- he said we will have talks with iran as soon as next week.

as soon as -- as to who those we are is unclear. it appears to be the case that the u.s. and iran will hold direct discussions. in the run-up to this work, five rounds of discussions have taken place mediated by oman, by qatar in order to progress with the nuclear deal. the six round was supposed to take place a couple of days after the war began but of course the 12 day war that ensued, putting back all of those discussions, now the u.s. are expressing optimism that the two sides can find some form of an agreement yesterday. the special envoy steve witkoff said in an interview said we are hopeful for a comprehensive peace agreement, the signs are there. i should copy out that in that same press conference president trump said we may sign an agreement, but i don't know, timmy, idle tickets necessary, and that i don't think is necessary is important to pick up on because it does suggest that the u.s. do feel that they have eliminated the deterrence and iran's ability to have any

leverage in these discussions, i.e. doubling down on the claims that they have fully obliterated nuclear sites. that is an ongoing discussion as we spoke about yesterday. multiple conflicting pieces of evidence suggesting that there had been a setback to the nuclear ambitions, but not a full obliteration, which is how president trump is characterized it. it looks like we are entering into a crucial week in the biggest take away is that there is a window for diplomacy. what are the types of concessions that iran will offer this time around are unknown at this point. tom: that debate about the intelligence around the nuclear sites continues with many suggesting that the iea needs to be on the ground to assess. meanwhile, joumanna, president trump also touching on because i'm talking about progress there. what is the latest in terms of discussions around a potential cease-fire in gaza and the horrendous humanitarian situation? joumanna: it's important to know

that the fighting in gaza never stops. actually, more -- more palestinians died in the last 12 days of the war, over 1000 palestinians have died then the number of iranians that were killed in the 12 day war. around 600 there. so, the fighting still rages on. as you say, there's still a deep humanitarian crisis, but president trump did seem to think that this cease-fire in iran, with iran could yield some positive results as far as the gaza cease-fire discussions are going. you may recall that the first phase of the first cease-fire elapse back in march, that means several attempts since then to make a breakthrough. but one of the key stumbling blocks is the fact that hamas officials and israel -- there's one intractable point, which is the hamas officials would like to see a cease-fire leading to a full end to the war. from the israeli perspective, they see it as a temporary cease-fire that would enable the release of what is expected to be the last 20 hostages still

alive in exchange for prisoners without fully committing to a long-standing cease-fire. so, this is where things are right now. but again, steve witkoff, none other, the same individual who has been leading his expressing optimism. the wall street journal reporting that some of those discussions could resume in egypt in the next couple weeks. tom: bloomberg's joumanna bercetche with an important update in terms of the situation on the ground in gaza in conversations about a potential cease-fire there and looking ahead to the talks between the u.s. and iran next week. switching focus, china's one point $3 trillion wealth fund spent years as one of the world's most sought after investors, owning massive stakes in blackstone and morgan stanley, but now, china investment corp. or cac is in full retreat from the u.s. that is the focus of today's big take and bloomberg's greater china senior executive editor joins us with more.

fantastic to get you on the show to talk through this big take. what is behind the pivot away from the u.s. by cic? >> predominantly is the fact that the united states and china, the relationship between the world's foremost powers is not one defined by competition and rivalry, and in that sort of environment, cic is a victim, and also a metaphor of what we see today in that there is this fear of decoupling, not only in trade and in economics, but often in financial markets when it comes to wall street and banking and investing. tom: so what is the longer term impact of this on china as those flows are decoupled and cic readjust question mark the impacts on china, the impacts on the u.s.? >> i think globally, the main thing at stake now is, will the

united states and china now become separate regimes, are you going to have separate technologies in each country, and other nations around the world are going to have to pick which technologies they use, which country they are friends with, which countries they trade with. in this, financially, that decoupling speeds up, that could amplify the decoupling in the technology space and the diplomatic space. this is why csc's fate is so important because it tells us how quickly that is happening. if it will happen and to what degree. tom: to some extent the canary in the coal mine on the story. cic on the fate of that. bloomberg senior executive editor for greater china with the details as you get more, well worth your time in terms of marie. the big take on bloomberg.com and of course on the terminal. now to some other stories making the news this thursday. the chief executive world line has blamed and orchestrated

media campaign for the firm's precipitous share decline in an effort to take the company out of its current prices. on a call with analysts he set the french payments processor had been attacked by the media. a series of articles had accused them of covering up fraud by some customers, which the company denies. u.s. authorities have accused a british man of conspiring with a group of hackers to steal data from dozens of companies and offer it for sale online. 25-year-old kai west been charged with four counts, including conspiracy to commit computer intrusions. it's alleged's actions caused more than $25 million in damage to victims around the world. the u.s. is seeking his extradition. coming up, but co.'s ceo of one of bloomberg's 25 european tech startups to watch joins us from the ai powered planning and business forecasting platform pigment will be here to talk tech. that is next.

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tom: welcome back to bloomberg daybreak: europe. bloomberg's highlighting 25 european startups to watch this year. the list includes household names as well as companies that are just emerging. breaking ground in fields

including generative ai, space, autonomous vehicles and video games. we are joined from paris by the cofounder and co-ceo of one of them french ai powered planning and business forecasting platform in one of the hardest startups. thank you for taking the time to join us out of the paris studio. we talk to a couple of times about the tremendous growth that you and pigment are seeing for your customers. i just wonder as we think about the macro economic uncertainty, concerns about supply chain constraints, tariffs, these are issues that your services help to assist with. what kind of demand are you seeing right now given this more uncertain environment we are operating in? >> absolutely the world is accelerating. we see it with the macroeconomic context. we see it with ai, now companies are coming to us. the problem for business today is that they have to make faster decisions.

they cannot wait months for this macroeconomic context. so they need ai to help them solve their problems. they cannot relay their legacy platform on excel spreadsheets to the business planning and that to the world, so they come to us because all -- because it's becoming a business partner to make it quickly on what's happening to them. tom: they're coming to you for these services, what is it mean for revenues in terms of a rr an annual recurring revenue, what are you projecting as you look out towards the end of 2025? >> we are projecting to keep growing at two x rate, so we are doing really well at 120% which means our customers are expanding, we signed new customers. we are making a big bet into

high-tech so we keep going in that direction. tom: a number of investors have talked about this year being the year of ai agents in the last time you and i talked you released its own ai agent, what is the response been to that and what are your customers doing with it? click since we launched the first one when it came to last time, we've got an extraordinary setback from our customers, incredible things which are the analysts. which is for sale and finance seems to have them automate analysts. to give you an example, a finance team needs to do a budget analysis. you can now do that completely automatically which means some very cumbersome walk-throughs can be fully automated on the platform. not only it helps teams save times but it allows them to ask a better question and get smarter answer ends -- on things

we perhaps have not thought about. i think you know what will make a big change for them is that they are not going to only be able to make faster decisions but they will be able to act quickly on that whether it's when the revenue is changing, the margin is increasing, decreasing, they will act very fast on these things. tom: a key question obviously as we see the embed of ai what it does to the labor market, is the adoption of your products by your clients allowing them to cap pet counsel reduce headcounts, are you seeing that? >> i would say what we see is that we are trying to empower our users to do more things. what they are trying to do with us is not necessarily to replace jobs. it's to empower humans to do more. to help them find an answer that perhaps they would not have found. it can help them detect something they wouldn't have found and run thousands of scenarios and parallels to find a solution to react to the

macroeconomic environment or to be proactive about investments. for us, that's what we see today and this is the power of the platform. tom: what is your longer-term ambition for the business. you compete with microsoft xl with workday. some of your clients include siemens, for example. publicist, snowflake. what is your ambitions and 5, 10 years time. are you looking to push financial planning? >> absolutely. we have a big ambition. we want to have a large impact on the world and have the largest company in the world that could impact as many business leaders as possible. so we are studying with planning but we are going to expand beyond and we want to push the boundaries of the erp and what we want to do is be able to move from decision to action. so helping our customers create a revolution with ai helping them take automated decisions, helping them reduce the amounts with the data and really have

them focus on the smart actions and help them tackle automated action at the end. so having automated workflow, i think we can create a complete revolution in the way people think about planning, but not only thinking about running a company in general. tom: what are your biggest constraints or headwinds at this point? >> i think our biggest constraints are always the fact that we want to innovate as fast as possible, and we want to keep pushing in that direction. in order to do that, we need to be able to hire fast and we also need to be able to innovate. so to give you an example, something that i am spending time on is making sure that we work with the european union and tech regulations so that we can keep innovating very, very fast from an ai standpoint because this is going to be the game changing revolution for all the game changers we are starting today. tom: so you are working with the eu, what specifically does

europe need to do to have tech companies that can actually scale globally? >> i'm going to give you an anecdote. i was lucky to be with jensen huang from nvidia two weeks ago in paris that delivered the speech at a tech event, and he was saying that europe needs to ship faster. they need to make decisions faster. and we cannot do like what we do with our wine, which is making it aging and waiting for it to be better. we need to reach faster. that means that today we have incredible tariff in europe. what we need is to be able to shift -- ship fast and infrastructure that helps women ai standpoint. obviously that regulation doesn't work inside that we have the regulation with us to be able to innovate at the speed to which we need to go. finally, i think we need to work very closely with the u.s. we need to work as one global world and we need to do that really, really well.

i'm not seeing only european first. tom: we have to work with the u.s., even as there are concerns about the adoption of u.s. technology on the question about sovereignty. that is your view. the u.s. is in increasingly strong market for you on the team. 60% of revenues, ultimately, you will be ip owing in the u.s., aren't you? >> probably, i think the ipo will be on a path at some point. i think being private is amazing for innovation. it helps us on if we need to go public, it would probably be in the u.s. tom: what are your ambitions in terms of the scale and size of the u.s. market as a segment of your revenue stream? >> i think the u.s. market will remain probably forever our largest market. it's a market that is really incredible to adopt technology, we will keep pushing everywhere else in the world. but obviously the u.s. has been

an amazing stream for us and i think it's really a market where you need to be in areas of ai, the largest companies creating ai today, our partners in the u.s., so we want to keep working on innovating with them to have solutions to our customers. tom: cofounder and co-ceo of pigment on the need to ship products in europe and the need to collaborate with the u.s. when it comes to this key technology. thank you very much, joining us out of our paris studio. plenty more coming up. we break down moves around the dollar, rates expectations. stay with us. this is bloomberg. ♪ this is bloomberg. ♪ the first day back from maternity leave is so weird... we get it. find a caregiver who does too.

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tom: well is going to contact -- >> were always going to consider the economic data, the outlet, the balance of risk. it really doesn't affect our job

in the way we do it. tom: fed chair jerome powell speaking in may about the impact of political pressure on the u.s. central bank and that political pressure continues with the reporting from the wall street journal that president trump is looking potentially to announce the next fed chair now money as soon as possible to her. so you could have a lame-duck fed chair. his term ends in may 2026. that is one of the factors that is leading to pressure on the dollar. you are seeing that again today. here's the historical context. the dollar is down more than 8% so far in 2025, compare that to other years were using pressure on the greenback. we have not seen a move like this for some time. we are taking you all the way back to 2019. you have the example of 2006, a drop of three .6%. so far in 2025 a drop of 8.4%. good news on the inflation front for countries like europe, european union and countries like the u.k. less good if they are exporting relative strength in those

currencies. what is the big beautiful deal due to the dollar story as well? have a look at the treasury story, we have this year seen a bit of a divergence in terms of the play out between high yields and softer dollar. that is starting to reverse, to some extent, yields up and coming in lower is a dollar has started to drop. more traditional relationship. 4:29 on the u.s. benchmark -- 429 on the u.s. benchmark. you have bets in the markets on 4% on the 10 year. the moves around what happens with this fiscal stimulus and the bills, the tax cuts in this band out of the u.s. will be consequential. the adjustments are that of the geopolitical risk fades with the safe haven move into the dollar comes off as a story willing of your attention. looks look at what's happening in nvidia. taking the crown for microsoft in terms of the most valuable company by my period cap. 3.7 $7 trillion. in 1.5 trillion dollars since april, gains of 60%. jensen huang of nvidia speaking yesterday saying the demand for

their gp use and accelerators continues. some have been more excited that it would come through 2025 and then fade in 2026, the narrative seems to be, at least for jensen huang and team in spending, 2026 is still a story in terms of the spend on those ai chips. bloomberg terminal users can access these charts throughout the show at gtv on the bloomberg terminal. live coverage of the eu leaders summit through the day, including the executive vice president, the opening trade is up next. this is bloomberg. ♪

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anna: good morning from london, i'm anna edwards alongside guy johnson and kriti gupta. an hour away from the opening trade, here's where you need to know. markets bet on lower u.s. interest rates after a report president trump could be just months away from naming his choice. the dollar dips as the euro edges closer to 117. meanwhile, the fed releases plans to roll