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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: They say is the Bloomberg Daybreak Europe podcast. Good morning,

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Speaker 2: It's Friday, the second of January. I'm Stephen Carroll in London.

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Speaker 2: Coming up today. Swiss authorities continue the search for victims

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Speaker 2: after dozens are killed in a tragic New Year fire

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Speaker 2: at a ski resort bar. Christine Leguard says Bulgaria joining

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Speaker 2: the euro is a powerful symbol of what the EU

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Speaker 2: can achieve. Plus an upbeat start. Stocks begin twenty twenty

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Speaker 2: six on the up as last year's big bets on

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Speaker 2: AI and chips continue to power gains. Let's start with

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Speaker 2: a roundup of our top stories. Officials in Switzerland say

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Speaker 2: around forty people have died in a fire at a

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Speaker 2: ski resort bar where partygoers were celebrating the New Year.

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Speaker 2: They estimate that more than one hundred others have been

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Speaker 2: injured after flames ripped through the bar at the popular

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Speaker 2: alpine resort crom Montana. Eyewitnesses told friend broadcaster BFMTV that

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Speaker 2: a candle on a bottle ignited the ceiling. Swiss President

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Speaker 2: Gui Parmerlan says it's one of the worst tragedies his

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Speaker 2: country has ever experienced.

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Speaker 3: Their lives should be honored for what they were promise

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Speaker 3: energy a part of our shared future. We owe it

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Speaker 3: to them to respect them. We owe it to their

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Speaker 3: memory to make sure that such a tragedy never happens again.

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Speaker 2: Swiss President Gui Palmerlan, speaking through a translator. Investigators are

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Speaker 2: retrieving some phones and conducting interviews with witnesses to see

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Speaker 2: if the venue had the correct safety procedures and emergency exits.

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Speaker 2: European Center Bank President Christina Guilds says Bulgaria adopting the

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Speaker 2: Euro is a testament to the continent's ability to cooperate

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Speaker 2: and withstand international headwinds. In a statement, the ECB chief

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Speaker 2: said the euro is a powerful symbol of what Europe

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Speaker 2: can achieve when we work together. She offered these words

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Speaker 2: in a video message posted on social media.

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Speaker 4: We are delighted to welcome all the Bulgarians into the

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Speaker 4: euro Area using the Euro. I promise that I would

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Speaker 4: toast that moment, and of course I will raise a

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Speaker 4: glass with some good Bulgarian wine to celebrate the occasion.

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Speaker 2: What Despite the guard's warm words, Bulgaria's entry into the

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Speaker 2: euro Area comes amid ongoing criticism of the country from

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Speaker 2: the European Union over its failure to make sufficient progress

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Speaker 2: on improving the rule of law domestically. The timing is

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Speaker 2: also sensitive. The Bulgarian government has recently been forced to

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Speaker 2: resign following anti corruption demonstrations, and public opinion remains divided,

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Speaker 2: with almost half of the population said to oppose adopting

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Speaker 2: the single currency. Stocks have opened the new year with

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Speaker 2: gains once again being dominated by AI and chip makers.

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Speaker 2: Asian shares climb as Samsung touched an all time high

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Speaker 2: and bid you jumped on the news that its chip

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Speaker 2: unit has filed for an IPO. Despite a recent pullback,

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Speaker 2: global stocks posted their strongest year since twenty nineteen last year.

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Speaker 2: Battel is head of the capital allocation team at all

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Speaker 2: Spring Global Investments.

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Speaker 5: I think the same sectors that have been strong for

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Speaker 5: this year and a couple of years before are going

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Speaker 5: to continue to be strong. The other sectors that I think,

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Speaker 5: particularly for consumers, may be rather disappointing. So we still

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Speaker 5: think it'll be technology industrials relating to the electrical grid

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Speaker 5: and those will be the sectors, and aerospace defense will

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Speaker 5: continue to be the strong sectors and really all perform

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Speaker 5: those other sectors.

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Speaker 2: Marji Betel's picking there after. The Nasdaq one hundred index

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Speaker 2: gained twenty percent last year, in a third consecutive year

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Speaker 2: of gains in other corners of the market. Gold and

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Speaker 2: silver have also advanced as trading in twenty twenty six

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Speaker 2: kicked off, building on their best annual performances since nineteen

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Speaker 2: seventy nine. China's BYD looks on tractors or pass Tesla

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Speaker 2: to become the world's biggest selling electric vehicle maker From

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Speaker 2: twenty twenty five, The ev Giant medits fullier sales target,

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Speaker 2: delivering four point six million vehicles that's almost eight percent

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Speaker 2: from twenty twenty four. Around half of those were fully

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Speaker 2: electric vehicles I mean. While Tesla is expected to report

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Speaker 2: later today that it delivered just over four hundred and

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Speaker 2: forty thousand vehicles in the fourth quarter, down eleven percent

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Speaker 2: from a year earlier. That would see annual sales come

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Speaker 2: in at around one point six million, marking the second

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Speaker 2: consecutive year of declining sales for Elon Musk's company. The

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Speaker 2: UK's Chancellor Rachel Reeves is quietly hammering workers with taxes,

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Speaker 2: according to new analysis from the Center for Policy Studies.

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Speaker 6: The report by the right.

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Speaker 2: Of Center think tank titled Who Wins Under Labor says

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Speaker 2: that under OBR forecasts, workers earning around fifty thousand pounds

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Speaker 2: today will be worse off by just over five hundred

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Speaker 2: pounds in twenty thirty even as pensioners and benefit recipients

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Speaker 2: enjoy real terms gains. The news comes after the Chancellor

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Speaker 2: extended a freeze on income tax and national insurance contributions

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Speaker 2: for in employees until twenty thirty one in a November budget,

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Speaker 2: a policy which the Treasury has defended as fair and necessary.

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Speaker 2: And Zora MM Danny has been inaugurated as mayor of

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Speaker 2: New York City, promising to lead as a democratic socialist.

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Speaker 2: The nearly two hours swearing in ceremony featured speeches from

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Speaker 2: two of the US's most liberal members of Congress, Representative

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Speaker 2: Alexandria Occasio Cortez and Senator Bernie Sanders. I'm Danny, promised

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Speaker 2: to the large crewdit City Hall to represent all of

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Speaker 2: those living in the city.

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Speaker 1: I stand alongside over one million New Yorkers who voted

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Speaker 1: for this day nearly two months ago, and I stand

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Speaker 1: just as resolutely alongside those who did not. I know

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Speaker 1: there are some who view this administration with distrust or disdain,

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Speaker 1: or who see politics as permanently broken and while only

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Speaker 1: action can change minds. I promise you this. If you

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Speaker 1: are a New Yorker, I am your mayor.

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Speaker 2: Danny is New York City's first Muslim and South Asian mayor,

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Speaker 2: as well as the youngest and more than a century

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Speaker 2: after the ceremony, Ma'm Danny announced three executive orders focused

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Speaker 2: on making housing more affordable. And those are your top

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Speaker 2: stories on the markets. The Mscish Pacific Index outside of

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Speaker 2: Japan is at one point six percent. Japanese markets are

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Speaker 2: still closed today, the Hangsang two point six percent are

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Speaker 2: Eurostock fifty Future is four tenths lower at the moment,

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Speaker 2: but we're looking at future as positive. On Wall Street,

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Speaker 2: Nazdak futures up by seven tenths of one percent. The

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Speaker 2: Bloomberg Dollars Spot indexes flats. We've got the euro at

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Speaker 2: one seventeen forty eight this morning. In a moment, we'll

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Speaker 2: look ahead some of the big themes dominating markets in

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Speaker 2: the year ahead, plus why today January twod should be

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Speaker 2: your default day. But first let's bring you more on

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Speaker 2: our top story in the devastating fire at that ski

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Speaker 2: resort in Switzerland during New Year celebrations. Our reporter two

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Speaker 2: at of Bios here with the latest tiba. What is

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Speaker 2: the latest that we know then about what happened?

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Speaker 7: Well, we know that this fire broke out in the

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Speaker 7: early hours of yesterday morning. It was at La Conste

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Speaker 7: La Chimbar in the ski resort of Consmontana during those

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Speaker 7: New Year celebrations. Police and emergency services were alerted around

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Speaker 7: one thirty am and rushed to the scene to help.

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Speaker 7: At the moment, Swiss police are saying about forty people

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Speaker 7: were killed and one hundred and fifteen injured. There are

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Speaker 7: a number of others missing as well. The injured were

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Speaker 7: taken to local hospitals after the event, as well as

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Speaker 7: some facilities in Lauserne, Geneva and Zeri so across Switzerland,

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Speaker 7: and local officials are saying the blaze was the result

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Speaker 7: of an accident. Some eyewitnesses have told French broadcasters that

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Speaker 7: it was a candle on top of a bottle which

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Speaker 7: ignited the ceiling, resulting in the fierce blaze. At the moment,

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Speaker 7: police have accordoned off the area and they are continuing

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Speaker 7: to investigate the course of the fire.

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Speaker 2: Where do we expect those investigations to be focusing on

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Speaker 2: from here.

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Speaker 7: Well, we've heard from the Swiss president that he's confident

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Speaker 7: that the investigation will be carried out in a professional manner.

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Speaker 7: At the moment, investigators are trying to deduce a cause

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Speaker 7: of the blaze. They've retrieved some phones from the scenes,

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Speaker 7: and they are conducting interviews with witnesses. One part of

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Speaker 7: their work will be to see if the venue had

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Speaker 7: the correct safety procedures and emergency exits in place, if

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Speaker 7: anything could have been prevented. But also there are still

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Speaker 7: a number of people missing, as I mentioned, and police

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Speaker 7: are trying to identify bodies and are trying to get

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Speaker 7: in touch with the relatives of the deceased. Police have

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Speaker 7: now set up a helpline for families seeking information. Officials

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Speaker 7: are warning though that it could take days or even

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Speaker 7: weeks to identify everyone that died.

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Speaker 2: This is too obviously a major tragedy in the Skimers

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Speaker 2: or Switzerland as a country as well. And how are

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Speaker 2: authorities they're reacting?

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Speaker 7: Yeah, so for Switzerland, this is a major incident and

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Speaker 7: one that they are perhaps not used to. Well, there

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Speaker 7: was a very popular tourist destination Conspontana. It's also quite

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Speaker 7: a small town, and we've seen that in some of

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Speaker 7: the reaction, some of the injured have had to be

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Speaker 7: transferred to neighboring countries, just given the strain on the

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Speaker 7: health services in Switzerland because of the scale of the tragedy.

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Speaker 7: But this was President as well saying that it's one

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Speaker 7: of the worst tragedies their country has ever known. They're

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Speaker 7: still coming to terms with the scale of the incident,

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Speaker 7: but there was a significant immediate reaction from emergency services.

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Speaker 7: There were thirteen helicopters, forty two ambulances and one hundred

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Speaker 7: and fifty emergency responders sent to the scene of the

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Speaker 7: fire shortly after that fire broke out. So at the moment,

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Speaker 7: Switzerland is still coming to terms with the scale and

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Speaker 7: the tragedy of this event.

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Speaker 2: Okay to Adabaio, thank you very much. Stay with us

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Speaker 2: more from Bloomberg Daybreak Europe coming up after this to

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Speaker 2: the markets now, and we're seeing stock markets in Asia

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Speaker 2: gaining in their first trading sessions of the year. The

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Speaker 2: prices of gold and silver also rising after volatility that

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Speaker 2: we've had over recent days. Let's bring in our markets

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Speaker 2: report of valeries. I tell for more Valerie. Good morning,

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Speaker 2: a positive start to the year. What's driving the gains

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Speaker 2: in Asia?

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Speaker 8: Look, it's the positive start to the year, and it's

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Speaker 8: all down to again the theme of chips and ai

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Speaker 8: leading Asia stocks higher. We have the Hang Saying hire

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Speaker 8: by two point seven percent, the costby Index in South

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Speaker 8: Korea hire by two point three percent, and that's already

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Speaker 8: after the costb in South Korea was one of the

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Speaker 8: best performing stock markets of twenty twenty five. What's really

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Speaker 8: leading it is a few interesting things about chip IPOs

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Speaker 8: by Do announcing its AI chip unit has filed for

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Speaker 8: an IPO. That was one of the best performing stocks

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Speaker 8: in the Hang Saying this morning, and it's kicking off

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Speaker 8: what is expected to be a busy year for listenings.

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Speaker 8: Backing China's tech ambition, we actually had an IPO this

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Speaker 8: morning from a Byron. This is another Chinese ship maker.

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Speaker 8: It surged as much as one hundred and nineteen percent

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Speaker 8: in the first day of trading in Hong Kong. Pretty

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Speaker 8: impressive first session trading debuts, and follows a string of

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Speaker 8: some Chinese chip makers coming to the market.

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Speaker 6: In December.

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Speaker 8: We had the likes of more Threads and Meta x

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Speaker 8: some of those surging triple digits on their first day

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Speaker 8: of trading. The market is starting to coin these companies.

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Speaker 6: Grouped together, the four Little Dragons.

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Speaker 8: It's all about China's ambitions in the chip space as

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Speaker 8: Nvidia retreats from the China market.

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Speaker 6: So a good positive session for Asia.

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Speaker 8: Again, as you mentioned, we are seeing precious metals rebound

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Speaker 8: after a volatile December. We're seeing gold up one point

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Speaker 8: three percent, in silver up three percent, and it comes

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Speaker 8: after a pretty rough trading session for the last trading

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Speaker 8: session of the year, after the CME hyped margin requirements

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Speaker 8: for precious metals.

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Speaker 6: But they're starting off the year on a positive footing.

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Speaker 2: Well, let's think then, Valarus was about how this fits

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Speaker 2: into some of the bigger themes we're expecting on markets

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Speaker 2: in twenty twenty six. Of course, as you mentioned, AI

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Speaker 2: absolutely huge and driving gains in last year. Are there

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Speaker 2: going to be continuing questions about a bubble in AI?

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Speaker 2: Is there continuing source of bullishness from this area as

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Speaker 2: we look into the air as.

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Speaker 8: Look, no doubt the source of excitement about twenty twenty

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Speaker 8: six does come a lot down to AI and this technology.

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Speaker 8: Fideli International calling it the defining theme for equity markets

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Speaker 8: in twenty twenty six, Blackrock thinking that it could keep

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Speaker 8: worries about tariffs and traditional macro drivers the back in

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Speaker 8: the back in the rear view mirror.

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Speaker 6: If we continue to see this positivity about AI.

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Speaker 8: Nat West calling it the powerful engine of economic expansion,

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Speaker 8: But you did mention bubble concerns, and I do think

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Speaker 8: there is still going to be a narrative of how

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Speaker 8: does this infrastructure build out, how do we build out

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Speaker 8: these data centers if we're still tight on funding. Private

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Speaker 8: credit has been playing a big part in funding some

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Speaker 8: of these data centers.

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Speaker 6: We know that private.

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Speaker 8: Credit has had some issues before with the lack of

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Speaker 8: transparency in some of their deals. But also you have

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Speaker 8: to bring into the fact how growth and inflation is

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Speaker 8: going to help or perhaps hinder funding for AI. If

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Speaker 8: we do have supportive fiscal policies around the world continuing,

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Speaker 8: which we're expecting to either from Germany, Japan, or the US,

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Speaker 8: probably would need to be matched by lower interest rates

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Speaker 8: in order to help fund out fund this tech buildout.

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Speaker 8: And for that to happen, we need to continue to

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Speaker 8: see the US labor market. We can slightly inflation return

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Speaker 8: back to track, and that would open up the door

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Speaker 8: for potential of FED easing for twenty twenty six.

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Speaker 6: And off the back of that, lower interest rates meanings.

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Speaker 8: That funding this debt surge to help this AI build

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Speaker 8: out could be more a bit easier than the market expects.

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Speaker 2: Barerik tariffs and geopolitics were also big players for investors

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Speaker 2: in the past year. Do things look at a little

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Speaker 2: camera from an investor point of view going into twenty

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Speaker 2: twenty six.

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Speaker 6: Well, given how.

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Speaker 8: Big this technology AI driver is, I think the main worry,

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Speaker 8: at least in the geopolitical space is continued tensions between

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Speaker 8: the US and China over the tech race.

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Speaker 6: You know, I mentioned it just at the beginning of this.

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Speaker 8: Discussion about how Chinese tech companies are starting to pose

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Speaker 8: some competition to the likes of Nvidia, to likes of

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Speaker 8: US big tech and their dominance around the world. So,

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Speaker 8: how the US and China continue to have a strong

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Speaker 8: or maybe fractured relationship about AI and the tech ambitions

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Speaker 8: behind it could be something that's quite key for the

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Speaker 8: equity market next year.

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Speaker 2: Briefly valuing the question of private credit, you mentioned it's

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Speaker 2: importance there in the tech space. Is there any sign

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Speaker 2: of the appetite for private credits abasing.

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Speaker 8: Well, look, if we continue to have supportive FED policies

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Speaker 8: and lower interest it's hard to see credit having an

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Speaker 8: issue next year. But yes, it is going to be

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Speaker 8: such a key role in the AI buildout that of

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Speaker 8: course people are going to be concerned when they start

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Speaker 8: to see some of these numbers that the likes of

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Speaker 8: some of these data centers infrastructure buildouts are going to

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Speaker 8: be posing to to how much debt is already out there. Steve,

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Speaker 8: and I know we talk so much about the debt

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Speaker 8: already out there, at least on.

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Speaker 6: The government balance sheet.

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Speaker 8: Next year could really be about a debt surge at

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Speaker 8: least in the private sphere around this AI build out.

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Speaker 2: Okay, Battery Taitel, a market supporter, thank you very much.

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Speaker 2: Just wanted to mention one of the story that we've

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Speaker 2: been reading this morning, an idea perhaps if your bored

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Speaker 2: or preemply disillusioned with New Year's resolutions. The behavioral economists

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Speaker 2: Ray Fisman and Michael Luca have a great piece on

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Speaker 2: Bloomberg about how today, the second of January, should be

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Speaker 2: your defaults day. That means that you should find some

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Speaker 2: time today to examine all of the decisions that are

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Speaker 2: made by default in your life, whether it's how much

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Speaker 2: you put into your pension or checking those subscriptions to

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Speaker 2: see if there are any that you're not using. They

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Speaker 2: delve into the science of this and quite defaults aren't

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Speaker 2: all bad, but they can leave some room for manipulation,

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Speaker 2: perhaps those continuing subscriptions that you don't check and allow,

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Speaker 2: I suppose money going out of your bank account for

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Speaker 2: no reason. Another suggestion from them, look at the apps

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Speaker 2: on your home screen on your phone. Are they the

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Speaker 2: ones you use the most? You could be saving yourself

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Speaker 2: time over the years too. They have some helpful suggestions

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Speaker 2: as well, things like perhaps just not just joining the gym,

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Speaker 2: but allocating appointments in your calendar to make sure that

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Speaker 2: you actually go. Carving out a time might actually help you.

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Speaker 6: To do it.

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Speaker 2: Perhaps some good ideas the inspiration to start the year.

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Speaker 2: We'll put a link to that piece on Bloomberg dot

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Speaker 2: com in our show notes. This is Bloomberg Daybreak Europe,

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Speaker 2: your morning brief on the stories making news from London

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Speaker 2: to Wall Street and beyond.

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Speaker 9: I'm Caroline Hepka and.

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