Good morning, this is bloomberg daybreak europe. I am tom mackenzie. Stocks in asia make china weaker despite reporting a surge in exports after the fed chair jay powell keeps the door open to Interest Rate cuts before the end of the year. We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected it would be appropriate to begin dialing back policy restraint later this year. Tom it investors look to europe with the ecb said to deliver its latest Rate Decision and new economic forecasts. Yemens houthi rubble strike a commercial ship killing three crew members an escalation of the red sea crisis. From geopolitics to the earnings story, we are looking at what is causing in terms of lufthansa, the redhead on the terminal, adjusted ebita on prior year levels, so they expect on the forecast. You will get a repeat of what came true in terms of earnings for 2024. In terms of revenue for the fourth quarter, 8. 7 seven 6 billion euros below the estimates of 9. 3 billion euros. There are details around impact of strikes we are seeing at airports across germany. First quarter adjusted ebita, losses coming in higher year on year due to those strikes. They expect eu approval for the italian flag carrier looking to buy a stake in the business. They expect to see some progress on that, so the top line is coming through from lufthansa saying earnings will not grow this year because the strikes are having an impact, so they are reiterating their view around 2024. Lets take a the markets broadly given what we saw yesterday, european stocks punching through fresh record highs, u. S. Stocks eking out gains. Nvidia a fresh record. Your infusion european futures pointing to a loss of. 24 . As i futures back below 18,000 down by. 4 of 1 , but the strength we saw yesterday powered by the tech stocks once again. Lets look cross asset, japanese yen and focus, boj governor ueda speaking. We are looking for anything that suggested two weeks time they could increase Interest Rates for the First Time Since 2007. Wage data stronger and japan, 148 on the yen. Jay powell does expect cuts to come through at some point this year but remains patient, so reiterating the message we have seen and heard from other fomc officials. 411 on the benchmark. Brent, 82 a barrel. Avril hong is standing behind singapore. What are you looking at . Avril japan first and foremost, the governor of the boj has been speaking in parliament, and what we have heard from them so far. He says the chance of reaching the target is inching higher little by little and they could start easing. They could mild easing if the boj hits the target. Lets take a look at what we are seeing our across assets in japan as that boj play is coming into focus today as we heard chatter even before we heard in parliament. We had wage growth data showing acceleration to the fastest clip since june of last year, and that feeds into the narrative we are seeing inflation that will help the boj toward its exit. We got a scoop saying government officials are supportive of boj move in march and april because they see the promising prospect of wage hikes in the country. That is playing out across assets. Bonds under pressure. Look here, you see how j apanese banks are doing. Lets take a look at other currency is faring, dollaryen the lowest in a month. This is the strengthening we are seeing against the backdrop of boj policy expectations, orchids increasing the pricing in a move later this month. Tom from japan to china, strong exports but not doing much across chinas market so far. Avril not at all. We had the exports growth jump today from the data from china, and we also had technically this should be supportive for equities, because that view the pboc government said there is room for a cut, but if youre not seeing that play out in chinese equities because geopolitics is in the mix. U. S. China tensions heating up. The Chinese Foreign minister talking about how there is a bewildering amount of trade cuts from the u. S. Taking, leveling out the comment against the u. S. As we see how it has been telling its allies to restrict chinese access to chip technology, so that is playing out in markets. We are also seeing the bond rally continuing. Lets take a look at stock market movers, because it is not just what we are seeing in chip related names but Health Care Stocks as the u. S. Senate committee is advancing a bill that could bar some Chinese Companies from federal contracts , so those are the ones we are seeing steep declines in. If you were looking for positives in the market it would be jd. Com on the back of earnings news and the Share Buyback and present it investors. Tom thank you very much. Lets switch focus to the u. S. Where wall street banks are on the cusp of his sweeping regulatory victory after Jerome Powell said officials with scaledback plans to make them hold more capital. He testified before congress yesterday. I do expect to there will be broad and material changes to the proposal. I am confident that the final product will be one that has broad support both at the fed and in the broader world. This would be a thoughtful, deliberative process. It is more important that we get this right can we do it fast. Tom there was not any surprise on the Monetary Policy rhetoric but on his comments about the Banking Sector and this particular piece of regulation. What did he have to say about u. S. Lenders . Did not expect this one. I thought we would be focused on Monetary Policy, but you have got powell saying this. The backdrop here is that the fed has been working on some changes to some policies are around capital questions were banks essentially, wanting them to hold more in capital. This is stemming back to the Global Financial crisis and broader reforms around the banks, but really picked up steam last year in the wake of the collapse of svb, other concerns about banking stability. Obviously there is been a huge push back on wall street, especially the big 80 banks we do not need to hold that much. We are worried that will slow down corporate lending. I think what powell is saying today because there is been the push and pull over whether the fed will go forward with its big plan, you just heard from that soundbite derek he was saying there could be pretty broad changes to the feds plan. He is following that up so they can read something they can all agree on, but i think it does indicate there is a lot of room if the fed is listening to heavy pushback from these to banks on what exactly the roles of light, so i think well have to look at what that ultimately plays out, but these federal shape up to, but some pricing some pretty surprising comments from pal there. Tom potentially paying dividends when it comes to the change of tune from the fed chair. What did he have to say about Monetary Policy . How in consensus was the fed chair and is expectations for when the cut will come . I think he was a big on consensus there. He did not give us any idea of when we will get the first Interest Rate cut, but she did say likely something later this year. That is so markets needed to hear from powell. Look, there has been concern among traders after the hot january cpi print whether we could return to rate hikes again. I think you did a good enough job betting away some of those concerns. It is all about timing for when the first cut will come. I do not think we got any additional insight into when the timing for that is, but i think especially ahead of the fomc meeting in march he said what we have been hearing from other fed policymakers in recent weeks. There is something that is going to come this year, still a wait and see approach as to when the timing will land. Tom excellent breakdown from jill disis on Monetary Policy expectations and potential changes to the rules for the Banking Sector. Now to the ecb, the latest policy decision coming out today. Interest rates expected to be held at 4 . It investors will be looking for hints for when the first cut will be from the ecb. Our correspondent is that the ecb headquarters in frankfurt. It would be watching out for in terms of guidance . That is right, the ecb is likely to keep rates where they are. Essentially they are very worried they do not want to give the wrong signal. We have seen inflation slow. A lot of governments in Central Europe are putting pressure to lower rates, but the ecb does not want to make mistakes. They do not want to spook markets by moving too soon and having to go back on that, so what we are looking at now is data. They will be looking at forecast to see if Inflation Numbers are going in the right direction on the 2 target. What we are looking at his wages. Wages are relatively high and that is with the ecb is worried about. If there are any hands wages are starting to go down, then they will be more reassured and we are more like to get the cut, right now the market is pricing in for june. After that the question will be how much of a cut and how fast, but that is too soon for that now. They are not cutting today and we think they will start cutting in june. Tom excellent review, thank you very much. We will have full coverage of the ecb policy decision at 1 15 p. M. Followed by Christine Lagardes press conference. Stay with us. This is bloomberg. Tom welcome back to bloomberg daybreak europe. The u. S. Military says at least three people have been killed in a missile strike on a commercial strip. They are the first killed since militants started attacking commercial shipping and one of the worlds busiest sea lanes. U. S. Officials condemned the attack. They continue to launch reckless attacks with no regard for civilians transiting to the red sea, and now they have unfortunately and tragically killed innocent civilians, and so the divided states will continue to hold the houthis accountable for their attacks. Tom lets get more from dana who stands by with the details. What more do we know about this attack in terms of the details at this point . A serious event, we saw three People Killed and four others injured. Their injuries are critical. At the philippines sent out a Statement Today saying two of its nationals were killed included in the three and two others were also wounded as a result of a Houthi Attack on a missile, and this is the first confirmed casualties from the series of attacks houthis have launched in the red sea and of cause quite a lot of damage. The houthis say this is a u. S. Link ship and that is why they contacted, but the owner has sold its ownership of this vessel a week or so ago, and now it is owned under a different person, but the confusion and the different information do not matter. What matters is no one is safe traveling through the red sea. We saw another ship yesterday sinking into the waters. The original attack on that ship causing damage, and not to mention this ship that was seized at the onset of these attacks. Tom is the inevitable response to step up in terms of u. S. And u. K. Attacks on those houthi positions, militants . The u. S. And allies response to these attacks have been calibrated to a certain point. It seems that the u. S. And those trying to defend travel in the red sea do not want to flareup or be the cause of a flareup in the region or in yemen as a whole. The houthis have become this wildcard in this conflict and they are backed by iran, and observers say they themselves have been surprised by the impact they were able to cause, so many potential cause of a flareup in the region might actually be even more damaging to shipping. The houthis have drones and saudi and uae exiting in countries being attacked as well. It is calibrated, and i think it will stay that way. Tom dana with the latest on the attack and the red sea. Now to some other top stories we are following, egypt and the imf have agreed to more than doubled the countrys rescue program to 80 billion after egypt undertook a series of Economic Reforms demanded by the iaf imf. The central bank height Interest Rates by a record 600 basis points. Senegals postpone president ial elections will be held later this month with the first round expected to take place on march 24 after the government backed the new date that will see voters go to the polls before the president is due to step down. We will explore the growing ties between u. S. And india coming up in our weekly dive into the state of globalization, terms of trade. That is next. This is bloomberg. Tom welcome back, lets get to our weekly deep dive into the state of globalization. We are zooming in on u. S. India relations. I have been speaking to the Council President about the two nations, and i began by asking him about the trading relationship and where it is heading. I think we are only just beginning to break out into a very smooth period of growth. It has taken a 75 years to get to 200 billion dollars. We need to hit 500 begin dollars. I think our governments are finally getting to the mind space where they can achieve that. Tom you expect those close to pick up from where they are. We have seen a lot of activity. A lot of it seems to be hedging from the downside coming from china. What do you expect to see in terms of flows Going Forward between the u. S. And india . Trade between the u. S. And india is not diversified. Services, agriculture products, food, aviation. We need to see that try to expand, and the u. S. And india are the giant pillars of free world prosperity. I think we should look at things like energy where there is enormous scope particularly on american oil and gas, but there are so many other areas, machine goods, capital, equipment especially as india becomes more of a manufacturing superpower. Tom we have seen ceos, tech executives spending time in india trying to court the talent when it comes to Artificial Intelligence, but also spending money on investing in infrastructure and manufacturing. I am thinking of apple Opening Stores in the country. How important is the Technology Story and how do you see that evolving . It is very important. India is deeply respectful of what the American Technology brings. There has been a lot of detail negotiation between the two governments on Defense Technology in particular. The g114 engines and drones, so i think technology is at the core of the relationship. Look at emerging technologies lunch with both governments and National Security advisors at the u. S. Chamber. Deep tech and future tech, quantum computing, Artificial Intelligence will have to be done in countries that trust one another. The u. S. And india trust one another. We have some of the largest Innovation Ecosystems on the planet. Tom is there a Political Risk when it comes to india . They have been buying russian oil and have not condemned russias attack in ukraine and critics have accused the Modi Government of a crackdown on muslims. Indian people are freethinking people. They have grown up in a vastly diverse democratic polity and leave fundamentally in democracy. 900 Million People will vote in the upcoming election. I serve as ambassador. India has given food, medicine, vaccines, fuel whenever these neighbors needed help. India has been a great developing partner in africa where i grew up, central asia where i spent time as a child. India has been viewed as an enabling partner for these countries, and if you look at it from the perspective of the u. S. Navy, the u. S. Navy and indian navy telegraph the same values of freedom of navigation and commerce, peaceful resolution, etc. I am not worried about the rise of india in world affairs. The world needs giant, diverse democracies full of free people, and they will sort things out as they go. Tom do you think anything changes if we get a President Trump after the elections in the u. S. . Would a Trump Administration treat the country differently . I worked as a Services Officer during the chinese invasion, and i can assure you that the u. S. Government has a very bipartisan view of india, and indians have a very bipartisan view of the United States. It is his been a project of strategic and economical convergence for over 25 years, and i am very confident that it will continue regardless of the elections in india and the United States this year. There is a strategic compulsion the drugs are two countries together, and it is increasingly an economic technological compulsion, and nations have their best relations when they are based on mutual need and respect, and the u. S. And india have that mutual need, because these are extremely turbulent geopolitical times, and we have learned to trust one another, we have built a record of achievement and there is no limit to what the u. S. And india can achieve. Tom the u. S. India business Council President speaking to me earlier on the relationship between device and india, and how that is evolving particularly on the trade front. Lets check back in from of the governor of the boj and focus on the currency, arguably as we see strength coming in from that japanese yen that 148. 53, i speculation increases if it is not march it could be april. The chance ueda saying the chance of reaching the target is getting higher little by little. Also saying they will keep buying Government Debt even if the easing framework is reviewed. Strengthen the japanese japanese yen, the Banking Sector rally at equities softer on the back of the strength in the japanese yen. Coming up, lufthansa warns of widening losses as industrial action takes its toll. We are live at the Frankfurt Airport for details on that story. Stay with us. This is bloomberg. Welcome to ameriprise. Im sam morrison. My brother max recommended you. So, my best friend sophie says youve been a huge help. At ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. Our neighbors, the garcias, love working with you. Because the advice we give is personalized, hey, john reese, jr. Hows your father doing . To help reach your goals with confidence. My sisters told me so much about you. Thats why its more than advice worth listening to. Its advice worth talking about. Ameriprise financial. Tom good morning, this is bloomberg daybreak europe, these other stories that set your agenda. Stocks in asia lower with china despite reporting a surge in exports after fed chair jay powell says he still expects u. S. Interest rates to fall this year. Investors look to europe with the ecb set to deliver its latest Rate Decision and new economic forecasts. Plus, Yemens Houthi rebels strike a commercial ship in the red sea killing at least three crewmembers. From geopolitics we break the line coming through from continent. The supplier to the auto sector listed in germany. The redhead is the four year adjusted earnings margin of between 6 to 7 , the top end of that is slightly higher than the previous estimates of around 6. 7 . Edging up in terms of the band when it comes to the Margin Expansion that could come through for 2024 from continental. We know theres a focus on the restructuring story and what they are doing to offset higher cost. They do see those margins rising after savings they have managed to carve out, particularly in the autos build business. For your sales up 41 point 4 billion euros, essentially in line with the estimates. Top lines coming through. We are looking in the luxury space. Those lines have not yet crossed. We will speak to the chief executive of continental to bloomberg. 9 30 am u. K. Time to discuss those earnings. Stay tuned for that interview in a couple of hours time. Lets check in on the markets after european stocks reach fresh records yesterday, we look ahead to the ecb decision day the up the update in terms of forecast. Across u. S. Stocks you see gains and it was checked back in terms of the driver of that rally. European futures now flat. Ftse 100 futures pointing to modest gains. S p holding above that 5001 hundred level, down. Nasdaq futures looking to lose after gaining 0. 7 percent or so yesterday with nvidia upgraded by moodys and a fresh record for that stock. 17,991 of the nasdaq 100 futures. Thats have a look across asset. Focusing on the currency space when it comes to whats happening with japan and the eurodollar. Before we get to that, lets look to the 10 year. After yields came in they drop with the back of the comments of fed chair jay powell, sticking to the script. No rush to cut but a cut is likely. For 10 on the benchmark then. U. S. , japan, 148, strength coming through for the japanese currency up on a monthly high on stronger wage data with expectations, we are getting closer to that point where they raise Interest Rates. Eurodollar flat on the session. Bran 8298. We watch the geopolitical ramifications as the red sea challenges remain in there is some detail around the demand picture for gasoline in the u. S. 80 to 98 on brent. Stocks mixed in asia after fed chair jay powell said he still expects u. S. Interest rates to fall this year. Lets bring in former bloombergs mliv team. What will the takeaway be from the fed meeting later this month, what did you take from what we heard from jay powell . Good morning. I think that the fed unleashed a lot of spirits on the markets. When they did a dovish dot plot indicating three rate cuts in 2024. Since then, the incoming data has shown the economy is doing well with the cumulative great heights rate hikes we have seen. The labor market is still going strong. The disinflationary narrative that we saw has stalled for now. So there is hardly any incentive for the fed to greenlight those three rate cuts that they signaled again when they meet in march. I think that they will take back one of the rate cuts that they had penciled in. That will leave us with two great cuts. That ties into what the cash carrier has said recently. I do think there is a hawkish out that we should expect from the fed this month. Tom thats really interesting. Kashkari said he forecasted there would be to cuts. He sticking to that but he could reduce it to one depending on the data. The markets have caught up with the fed expectations. Where is the gap still in terms of Market Pricing . Where is the miss price across these markets . I think the markets are perfectly price for this scenario three rate cuts if you look at the twoyear treasuries, if you look at the dollar and longer data treasuries. I think where the biggest surprises going to be is in the front end because markets are price for three rate cuts. If we do get only to rate cuts from the feds dot plot later this month, i think that the twoyear treasuries will correct and i see those yields going up by some 25 to 30 paces points from here. At the morning at the moment we are doing 456. In the decimate destination depending on what the fed indicates later this month. Tom for 75 to 480 currently at 455. In line with three, but if they moved to to the repricing needs to happen at the front end. Ecb is expected to hold at 4 . Whats interesting about today . What will you be looking at . The markets we are expecting today, whether they prepare the ground for a rate cut in june, i think that the ecb has got one more meeting to go before the june meeting in april, the question is whether they will prepare the ground for that rate cut. I think it behooves them to prepare the ground sooner rather than later. We should probably expect a tweet in the language, they should probably indicate that rates shouldnt be as restrictive as they have been Going Forward, but they will predicate that based on the evolution of wage inflation. Of course we will also get revised macroeconomic forecast. I think they will cut back on the inflation forecast where they were expecting two point 7 inflation for 2024. They may cut it to 2. 6 or 2. 5. That was in the rally in german bonds that we have seen this week. Tom always billion on the analysis around the central banks. We look ahead of the ecb decision. Thank you. Lets switch focus to the u. K. Now where jeremy hunt cut National Insurance by another two Percentage Points in the budget yesterday, the selection aiming to revise conservative party fortunes ahead of this years looming election. The policies i announced today mean more investment, more jobs, Better Public Services and lower taxes and a budget for longterm growth. Tom lets bring in bloombergs joe mays with a focus on the energy putting you into yesterday, as the dust settles on this budget and the obra analysis, where do you think this leaves this conservative party . It leaves me in a very interesting position, they had a key vote in the two percentage point cut, but they did not have much more. On one side you have the party expressing disappointment, but we didnt have a real rabbit out of the hat moment. That didnt happen. On the others what did welcome this package from jeremy hunt was the fact that he didnt speak financial markets. That was a key concern for the chancellor. Thats why the measures trailed in advance. It made markets think inflation is coming back in the u. K. They didnt want Interest Rates to be disturbed i the budget. Its really a mixed picture for them. But certainly a consensus is that this was in a game changer but it also isnt a budget that will win the next election. Will we see another budget later this year and increasingly, people feel like this means the election will come it will happen in may because it did not have a big Game Changing measure in its. Tom thats interesting. I wanted to ask you about that speculation. Give us more detail on what potential policies could come through in that event if that happens. Also labors response, the opposition party. The conservative party sees a path to win the election. Interest rates do come down. Inflation comes down more. When you get to the auto, they could have another fiscal event where it improves conditions. They might be able to afford more giveaway ahead of an election and that could take the form of the income tax cut. The conservative party wants to abolish it at some point into the future. Theres that. In terms of labor. I think labor can see that the tories set various drops in this budget. And also a tactic for oil and gas companies. Labels were already using it to spend on their own program. Now they come with new ways to fund those measures. And they say we interrupt this tax and we will cut the spending movement. They are saying we will take our own time and make our own decisions, drawing electoral devices ahead of the election for this year. Tom thank you very much, breaking down the details as we assess the implications of the budget that came through yesterday for the u. K. Chancellor and for the conservative party. We will speak to shadow chancellor just after 8 30 am u. K. Time, getting her response to the budget. Definitely listening to that one. Back to corporate space and in germany, lufthansa reporting fourthquarter earnings, missing estimates and warning that earnings will not grow this year because of ongoing strikes in that country. Germans flagship has been by overpay including strikes taking place as we speak. Boom burks oliver crook is at Frankfurt Airport for us. Youre getting a sense of industrial action and its starting to take its toll. Oliver very much. We werent actually supposed to be here. We were supposed to be at a building down the road where ceos and executive staff would be presenting their earnings and talking about the outlook. It eclipsed entirely by the industrial action happening here at Frankfurt Airport, lufthansas biggest hub for the biggest carrier in europe. Nothing is moving. All of the fights are virtually canceled. Even those that are not canceled, the ones that are still supposed to be going, theres announcements going all morning that basically the security lines cannot be staffed. Even if your flight is scheduled to go, talk to your carrier. There are a lot of unhappy people here, i have spoken to a number of them. For lufthansa, they have a muted outlook. You have near record profits. This is all good for the shareholder delivering there, that is not being felt by the ground crews were now 200,000 passengers are being affected. They want 12. 5 raises. They want a bonus to deal with inflation. This all needs to be resolved. The operating margin has come down. But this needs to be resolved before the key season of the summer where we cannot have a repeat of what we had two years ago. Tom give us a little bit more detail in terms of lufthansas challenged outlook, given the industrial strife we have seen on the ground. Oliver it was a little bit more bearish than the earnings had been anticipating in the outlook. I will go through the numbers. Theres a question we saw from air france. This question about peak travel, are we done with revenge spending of travel, postcovid, none of these airlines have hit their 100 capacity of prepandemic levels of 2019. Lufthansa is talking about bringing their margin. They were aiming for 8 and it will come in at 7. 6 . They were hoping to get to 95 of the 2019 prepandemic level. They have brought that down to 94 . Of course, cargo, which was a big story postpandemic, is coming back down. A very muted outlook looking forward. Trying to get capacity and numbers back up to say nothing of the business traveler, which has decidedly not bounced back. Tom birds oliver crook on the ground at Frankfurt Airport. We appreciate the details. Plenty more coming up. This is bloomberg. Tom welcome back, happy thursday. Our top stories we are following, u. S. Crash investigators accuse boeing of failing to cooperate in the inquiry into a mid air blowout aboard a 737 match jet. The chair regulator and csp told a Senate Committee its absurd boeing has not provided all the information sought by investigators. Boeing hit back at the unusual rebuke saying its doing everything it can to assist the inquiry into the Alaska Airlines incident. Shares of new York Community bancorp close higher after bloomberg revealed the struggling lender is getting an Equity Investment of over one billion dollars. N. Y. C. Be confirmed rid injection was as the company of former treasury secretary steven mnuchin. He will join the companys board along with the former comptroller of the currency who is being named the new ceo. On the head of the u. S. Securities and gary gensler says banks need to be truthful with the public and investors. We asked about the troubles facing commercial real estate lender new York Community bancorp and whether he sees wider risks. I think your viewers would understand that i am not going to comment on anyone register on our filer, but many banks are public companies. Those banks need to make sure that they make full, fair and truthful disclosures to the public so that the public can make their Investment Decisions. I know we are going to talk about climate, but it turns out its connected. They need to make those disclosures that investors take Investment Decisions on, and make sure they have proper decisions to make those proper disclosures. But i dont have anything more on this one bank. Just broadly, you are not concerned about systemic risks that might emanate from commercial real estate . Again, i wont comment on one bank and so forth. Broadly speaking. Broadly, at the sec, we are always monitoring markets for systemic risks. The reason is because investors get harmed when one bank or one nonbank, it could be a bank, it could be a hedge fund that fails and spills out into the market. This aint my first rodeo, i was in the Clinton Administration when longterm Capital Management failed. I was in the Obama Administration when we were cleaning up after the 08 crisis. Its always the american crisis, both investors and issuers that get hurt. We do monitor for systemic risk, and then we work with secretary yellen and chair powell, and share our thoughts. To return to the question of disclosures and gets to the news out of the sec, you have adopted Climate Disclosure rules that have been watered down from what was initially disposed. Scope three has been removed for scope one and two, companies will have to decide whether these Climate Risks are material to them. Its a pretty significant change. Why not reap oppose it by just adopting it rather than opening it up for,. Have you opened them up to potentially more litigation . Lets just step back for your viewers. What we have here is, today, literally hundreds, maybe a thousand Companies Already today , are making information about Climate Risks available to their investors. They are often doing it on the internet, their sustainability reports, and so forth. What we did today as we adopted a rule, we hadnt had a rule previously, and we said these disclosures need to be in your filings in your annual reports in your registration statements. Tom u. S. Securities and Exchange Commission chair, gary gensler speaking with bloombergs kailey leinz. Planning more coming up. European futures are pointing lower. This is bloomberg. There are so many ways of thinking about trust. It is something i think about all the time. Its the Number One Company value at salesforce. When it comes to ai, i think weve all heard the stories of chatgpt and the various equivalents out there just making things up or spewing out toxic outputs or bias outputs. Consumer chatbots are trained on the data on the internet. Theres a lot of incorrect, biased information out there. I think thats the difference between consumer ai and business ai. In business ai its unacceptable to make up an answer to what your Sales Forecast is responding to a Customer Service request. Thats why our team, my team has spent so much time building out what we call our einstein trust layer. Everything from data masking to citations, to zero retention prompts, there is no data leakage, to keeping a trail to make it really trusted for companies. What about the developers who are going out and talking on a day like today . Where have they seen worries about what they look like, the bias within what they are producing or are you seeing a diverse cast of characters building, particularly making ai easier with copilots. Particularly we wont be all coders let alone engineers. I think there is an amazing democratization moment frappe developers. Salesforce, one of the secret sauce of salesforce was its no code and low code platform, which means that business analysts can build apps without knowing how to code. Even Pro Code Developers who are really good at coding, they are able to use our tools to code faster. Ai is just an incredible accelerant and amplifier of both of these. Today we had a series of really exciting announcements called the einstein one studio that really makes it turnkey for any no code developer, as well as pro code developer to use ai to build faster. Do you think that the ai systems we are building right now are as diverse as the use cases we are having or are you worried about the bias thats in there inevitably because of what it is ingesting . More broadly we should all be very concerned about the Ai Model Development and the regulation of ai not being diverse enough. Thats so important for us to have rooms like this and dialogues like this to really ensure that a diverse set of objectives are going into creating the ai itself, as well as creating the governance and the policies and the regulation around responsible ai, and then finally, ai is going to create tremendous wealth and value, for shareholders, for stakeholders, for employees at these companies, for the people and businesses that utilize ai. We cannot leave behind women and minorities in this Value Creation moment. Tom ceo of salesforce ai speaking to bloombergs caroline hyde. Talking of ai, talking of tech. Yesterday, nasdaq futures pointing lower the last time i checked. Nvidia powering the gains of yesterday. The broader picture is, take a step back, do an aggregate count of the nasdaq composite, now 27. 5 trillion u. S. Dollars. That is larger than the totality of the u. S. Economy. For some, that will prove an argument around the stretch valuations, arguably the stretch valuations of big tech names. Just in terms of the size and scale, that is what you saw. We saw it again, 2021 in terms of the growth data in totality. The nasdaq composite 27. 5 trillion. Lets flip the board and have a look. We have live pictures from tokyo. We are listening again, governor ojeda has been giving comments. The last time i checked around 140 eight. Expectations that if they dont go in april, they could go in march. They are readjusting to the markets because wage data has been stronger, inflation, they said they will continue to buy a jgbs. He said we are gradually slowly getting closer to that point. There is putting more coming up. Look ahead to the policy decision followed by Christine Lagardes press conference. Up next, markets today. This is bloomberg. Anna this is Bloomberg Markets today