January 2, 2026 • 17 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Swiss police said about 40 people were killed and 115 injured after a fire broke out in a bar in the ski resort of Crans-Montana during New Year celebrations.
(2) European Central Bank President Christine Lagarde said Bulgaria joining the euro area on Thursday is a testament to Europe’s ability to collaborate and defy international headwinds.
(3) Stocks opened the new year with artificial intelligence and chipmaking once again dominating market moves. Precious metals — another hot corner of the market in 2025 — also advanced.
(4) BYD met its full-year sales target and likely surpassed Tesla to become the world’s largest electric-vehicle maker in 2025 — a milestone overshadowed by a challenging outlook for the Chinese auto market in the year ahead.
(5) Zohran Mamdani unapologetically promised to lead New York City as a democratic socialist during a frigid inauguration ceremony on the steps of City Hall, a warning to those who believed he might moderate his positions after taking office.
Podcast Conversation: Skip a New Year’s Resolution and Make Jan. 2 ‘Defaults Day’ Instead
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
They say is the Bloomberg Daybreak Europe podcast. Good morning,
It's Friday, the second of January. I'm Stephen Carroll in London.
Coming up today. Swiss authorities continue the search for victims
after dozens are killed in a tragic New Year fire
at a ski resort bar. Christine Leguard says Bulgaria joining
the euro is a powerful symbol of what the EU
(00:31):
can achieve. Plus an upbeat start. Stocks begin twenty twenty
six on the up as last year's big bets on
AI and chips continue to power gains. Let's start with
a roundup of our top stories. Officials in Switzerland say
around forty people have died in a fire at a
ski resort bar where partygoers were celebrating the New Year.
(00:52):
They estimate that more than one hundred others have been
injured after flames ripped through the bar at the popular
alpine resort crom Montana. Eyewitnesses told friend broadcaster BFMTV that
a candle on a bottle ignited the ceiling. Swiss President
Gui Parmerlan says it's one of the worst tragedies his
country has ever experienced.
Speaker 3 (01:11):
Their lives should be honored for what they were promise
energy a part of our shared future. We owe it
to them to respect them. We owe it to their
memory to make sure that such a tragedy never happens again.
Speaker 2 (01:27):
Swiss President Gui Palmerlan, speaking through a translator. Investigators are
retrieving some phones and conducting interviews with witnesses to see
if the venue had the correct safety procedures and emergency exits.
European Center Bank President Christina Guilds says Bulgaria adopting the
Euro is a testament to the continent's ability to cooperate
(01:48):
and withstand international headwinds. In a statement, the ECB chief
said the euro is a powerful symbol of what Europe
can achieve when we work together. She offered these words
in a video message posted on social media.
Speaker 4 (02:00):
We are delighted to welcome all the Bulgarians into the
euro Area using the Euro. I promise that I would
toast that moment, and of course I will raise a
glass with some good Bulgarian wine to celebrate the occasion.
Speaker 2 (02:15):
What Despite the guard's warm words, Bulgaria's entry into the
euro Area comes amid ongoing criticism of the country from
the European Union over its failure to make sufficient progress
on improving the rule of law domestically. The timing is
also sensitive. The Bulgarian government has recently been forced to
resign following anti corruption demonstrations, and public opinion remains divided,
(02:36):
with almost half of the population said to oppose adopting
the single currency. Stocks have opened the new year with
gains once again being dominated by AI and chip makers.
Asian shares climb as Samsung touched an all time high
and bid you jumped on the news that its chip
unit has filed for an IPO. Despite a recent pullback,
global stocks posted their strongest year since twenty nineteen last year.
(03:00):
Battel is head of the capital allocation team at all
Spring Global Investments.
Speaker 5 (03:04):
I think the same sectors that have been strong for
this year and a couple of years before are going
to continue to be strong. The other sectors that I think,
particularly for consumers, may be rather disappointing. So we still
think it'll be technology industrials relating to the electrical grid
and those will be the sectors, and aerospace defense will
(03:25):
continue to be the strong sectors and really all perform
those other sectors.
Speaker 2 (03:30):
Marji Betel's picking there after. The Nasdaq one hundred index
gained twenty percent last year, in a third consecutive year
of gains in other corners of the market. Gold and
silver have also advanced as trading in twenty twenty six
kicked off, building on their best annual performances since nineteen
seventy nine. China's BYD looks on tractors or pass Tesla
(03:52):
to become the world's biggest selling electric vehicle maker From
twenty twenty five, The ev Giant medits fullier sales target,
delivering four point six million vehicles that's almost eight percent
from twenty twenty four. Around half of those were fully
electric vehicles I mean. While Tesla is expected to report
later today that it delivered just over four hundred and
forty thousand vehicles in the fourth quarter, down eleven percent
(04:14):
from a year earlier. That would see annual sales come
in at around one point six million, marking the second
consecutive year of declining sales for Elon Musk's company. The
UK's Chancellor Rachel Reeves is quietly hammering workers with taxes,
according to new analysis from the Center for Policy Studies.
Speaker 6 (04:35):
The report by the right.
Speaker 2 (04:36):
Of Center think tank titled Who Wins Under Labor says
that under OBR forecasts, workers earning around fifty thousand pounds
today will be worse off by just over five hundred
pounds in twenty thirty even as pensioners and benefit recipients
enjoy real terms gains. The news comes after the Chancellor
extended a freeze on income tax and national insurance contributions
(04:59):
for in employees until twenty thirty one in a November budget,
a policy which the Treasury has defended as fair and necessary.
And Zora MM Danny has been inaugurated as mayor of
New York City, promising to lead as a democratic socialist.
The nearly two hours swearing in ceremony featured speeches from
two of the US's most liberal members of Congress, Representative
(05:22):
Alexandria Occasio Cortez and Senator Bernie Sanders. I'm Danny, promised
to the large crewdit City Hall to represent all of
those living in the city.
Speaker 1 (05:31):
I stand alongside over one million New Yorkers who voted
for this day nearly two months ago, and I stand
just as resolutely alongside those who did not. I know
there are some who view this administration with distrust or disdain,
or who see politics as permanently broken and while only
(05:51):
action can change minds. I promise you this. If you
are a New Yorker, I am your mayor.
Speaker 2 (06:00):
Danny is New York City's first Muslim and South Asian mayor,
as well as the youngest and more than a century
after the ceremony, Ma'm Danny announced three executive orders focused
on making housing more affordable. And those are your top
stories on the markets. The Mscish Pacific Index outside of
Japan is at one point six percent. Japanese markets are
still closed today, the Hangsang two point six percent are
(06:21):
Eurostock fifty Future is four tenths lower at the moment,
but we're looking at future as positive. On Wall Street,
Nazdak futures up by seven tenths of one percent. The
Bloomberg Dollars Spot indexes flats. We've got the euro at
one seventeen forty eight this morning. In a moment, we'll
look ahead some of the big themes dominating markets in
the year ahead, plus why today January twod should be
(06:42):
your default day. But first let's bring you more on
our top story in the devastating fire at that ski
resort in Switzerland during New Year celebrations. Our reporter two
at of Bios here with the latest tiba. What is
the latest that we know then about what happened?
Speaker 7 (06:56):
Well, we know that this fire broke out in the
early hours of yesterday morning. It was at La Conste
La Chimbar in the ski resort of Consmontana during those
New Year celebrations. Police and emergency services were alerted around
one thirty am and rushed to the scene to help.
At the moment, Swiss police are saying about forty people
were killed and one hundred and fifteen injured. There are
(07:18):
a number of others missing as well. The injured were
taken to local hospitals after the event, as well as
some facilities in Lauserne, Geneva and Zeri so across Switzerland,
and local officials are saying the blaze was the result
of an accident. Some eyewitnesses have told French broadcasters that
(07:39):
it was a candle on top of a bottle which
ignited the ceiling, resulting in the fierce blaze. At the moment,
police have accordoned off the area and they are continuing
to investigate the course of the fire.
Speaker 2 (07:52):
Where do we expect those investigations to be focusing on
from here.
Speaker 7 (07:56):
Well, we've heard from the Swiss president that he's confident
that the investigation will be carried out in a professional manner.
At the moment, investigators are trying to deduce a cause
of the blaze. They've retrieved some phones from the scenes,
and they are conducting interviews with witnesses. One part of
(08:17):
their work will be to see if the venue had
the correct safety procedures and emergency exits in place, if
anything could have been prevented. But also there are still
a number of people missing, as I mentioned, and police
are trying to identify bodies and are trying to get
in touch with the relatives of the deceased. Police have
(08:37):
now set up a helpline for families seeking information. Officials
are warning though that it could take days or even
weeks to identify everyone that died.
Speaker 2 (08:47):
This is too obviously a major tragedy in the Skimers
or Switzerland as a country as well. And how are
authorities they're reacting?
Speaker 7 (08:55):
Yeah, so for Switzerland, this is a major incident and
one that they are perhaps not used to. Well, there
was a very popular tourist destination Conspontana. It's also quite
a small town, and we've seen that in some of
the reaction, some of the injured have had to be
transferred to neighboring countries, just given the strain on the
(09:16):
health services in Switzerland because of the scale of the tragedy.
But this was President as well saying that it's one
of the worst tragedies their country has ever known. They're
still coming to terms with the scale of the incident,
but there was a significant immediate reaction from emergency services.
There were thirteen helicopters, forty two ambulances and one hundred
(09:41):
and fifty emergency responders sent to the scene of the
fire shortly after that fire broke out. So at the moment,
Switzerland is still coming to terms with the scale and
the tragedy of this event.
Speaker 2 (09:53):
Okay to Adabaio, thank you very much. Stay with us
more from Bloomberg Daybreak Europe coming up after this to
the markets now, and we're seeing stock markets in Asia
gaining in their first trading sessions of the year. The
prices of gold and silver also rising after volatility that
we've had over recent days. Let's bring in our markets
report of valeries. I tell for more Valerie. Good morning,
(10:16):
a positive start to the year. What's driving the gains
in Asia?
Speaker 8 (10:19):
Look, it's the positive start to the year, and it's
all down to again the theme of chips and ai
leading Asia stocks higher. We have the Hang Saying hire
by two point seven percent, the costby Index in South
Korea hire by two point three percent, and that's already
after the costb in South Korea was one of the
best performing stock markets of twenty twenty five. What's really
(10:41):
leading it is a few interesting things about chip IPOs
by Do announcing its AI chip unit has filed for
an IPO. That was one of the best performing stocks
in the Hang Saying this morning, and it's kicking off
what is expected to be a busy year for listenings.
Backing China's tech ambition, we actually had an IPO this
(11:02):
morning from a Byron. This is another Chinese ship maker.
It surged as much as one hundred and nineteen percent
in the first day of trading in Hong Kong. Pretty
impressive first session trading debuts, and follows a string of
some Chinese chip makers coming to the market.
Speaker 6 (11:18):
In December.
Speaker 8 (11:18):
We had the likes of more Threads and Meta x
some of those surging triple digits on their first day
of trading. The market is starting to coin these companies.
Speaker 6 (11:29):
Grouped together, the four Little Dragons.
Speaker 8 (11:31):
It's all about China's ambitions in the chip space as
Nvidia retreats from the China market.
Speaker 6 (11:37):
So a good positive session for Asia.
Speaker 8 (11:40):
Again, as you mentioned, we are seeing precious metals rebound
after a volatile December. We're seeing gold up one point
three percent, in silver up three percent, and it comes
after a pretty rough trading session for the last trading
session of the year, after the CME hyped margin requirements
for precious metals.
Speaker 6 (11:57):
But they're starting off the year on a positive footing.
Speaker 2 (12:00):
Well, let's think then, Valarus was about how this fits
into some of the bigger themes we're expecting on markets
in twenty twenty six. Of course, as you mentioned, AI
absolutely huge and driving gains in last year. Are there
going to be continuing questions about a bubble in AI?
Is there continuing source of bullishness from this area as
we look into the air as.
Speaker 8 (12:18):
Look, no doubt the source of excitement about twenty twenty
six does come a lot down to AI and this technology.
Fideli International calling it the defining theme for equity markets
in twenty twenty six, Blackrock thinking that it could keep
worries about tariffs and traditional macro drivers the back in
the back in the rear view mirror.
Speaker 6 (12:40):
If we continue to see this positivity about AI.
Speaker 8 (12:42):
Nat West calling it the powerful engine of economic expansion,
But you did mention bubble concerns, and I do think
there is still going to be a narrative of how
does this infrastructure build out, how do we build out
these data centers if we're still tight on funding. Private
credit has been playing a big part in funding some
of these data centers.
Speaker 6 (13:02):
We know that private.
Speaker 8 (13:03):
Credit has had some issues before with the lack of
transparency in some of their deals. But also you have
to bring into the fact how growth and inflation is
going to help or perhaps hinder funding for AI. If
we do have supportive fiscal policies around the world continuing,
which we're expecting to either from Germany, Japan, or the US,
(13:25):
probably would need to be matched by lower interest rates
in order to help fund out fund this tech buildout.
And for that to happen, we need to continue to
see the US labor market. We can slightly inflation return
back to track, and that would open up the door
for potential of FED easing for twenty twenty six.
Speaker 6 (13:44):
And off the back of that, lower interest rates meanings.
Speaker 8 (13:46):
That funding this debt surge to help this AI build
out could be more a bit easier than the market expects.
Speaker 2 (13:54):
Barerik tariffs and geopolitics were also big players for investors
in the past year. Do things look at a little
camera from an investor point of view going into twenty
twenty six.
Speaker 6 (14:05):
Well, given how.
Speaker 8 (14:06):
Big this technology AI driver is, I think the main worry,
at least in the geopolitical space is continued tensions between
the US and China over the tech race.
Speaker 6 (14:16):
You know, I mentioned it just at the beginning of this.
Speaker 8 (14:20):
Discussion about how Chinese tech companies are starting to pose
some competition to the likes of Nvidia, to likes of
US big tech and their dominance around the world. So,
how the US and China continue to have a strong
or maybe fractured relationship about AI and the tech ambitions
(14:41):
behind it could be something that's quite key for the
equity market next year.
Speaker 2 (14:46):
Briefly valuing the question of private credit, you mentioned it's
importance there in the tech space. Is there any sign
of the appetite for private credits abasing.
Speaker 8 (14:56):
Well, look, if we continue to have supportive FED policies
and lower interest it's hard to see credit having an
issue next year. But yes, it is going to be
such a key role in the AI buildout that of
course people are going to be concerned when they start
to see some of these numbers that the likes of
(15:16):
some of these data centers infrastructure buildouts are going to
be posing to to how much debt is already out there. Steve,
and I know we talk so much about the debt
already out there, at least on.
Speaker 6 (15:27):
The government balance sheet.
Speaker 8 (15:29):
Next year could really be about a debt surge at
least in the private sphere around this AI build out.
Speaker 2 (15:34):
Okay, Battery Taitel, a market supporter, thank you very much.
Just wanted to mention one of the story that we've
been reading this morning, an idea perhaps if your bored
or preemply disillusioned with New Year's resolutions. The behavioral economists
Ray Fisman and Michael Luca have a great piece on
Bloomberg about how today, the second of January, should be
your defaults day. That means that you should find some
time today to examine all of the decisions that are
(15:56):
made by default in your life, whether it's how much
you put into your pension or checking those subscriptions to
see if there are any that you're not using. They
delve into the science of this and quite defaults aren't
all bad, but they can leave some room for manipulation,
perhaps those continuing subscriptions that you don't check and allow,
I suppose money going out of your bank account for
no reason. Another suggestion from them, look at the apps
(16:18):
on your home screen on your phone. Are they the
ones you use the most? You could be saving yourself
time over the years too. They have some helpful suggestions
as well, things like perhaps just not just joining the gym,
but allocating appointments in your calendar to make sure that
you actually go. Carving out a time might actually help you.
Speaker 6 (16:34):
To do it.
Speaker 2 (16:35):
Perhaps some good ideas the inspiration to start the year.
We'll put a link to that piece on Bloomberg dot
com in our show notes. This is Bloomberg Daybreak Europe,
your morning brief on the stories making news from London
to Wall Street and beyond.
Speaker 9 (16:48):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 2 (16:54):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 9 (17:00):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 2 (17:09):
I'm Stephen Carol. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg day Break Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
They say is the Bloomberg Daybreak Europe podcast. Good morning,
It's Friday, the second of January. I'm Stephen Carroll in London.
Coming up today. Swiss authorities continue the search for victims
after dozens are killed in a tragic New Year fire
at a ski resort bar. Christine Leguard says Bulgaria joining
the euro is a powerful symbol of what the EU
(00:31):
can achieve. Plus an upbeat start. Stocks begin twenty twenty
six on the up as last year's big bets on
AI and chips continue to power gains. Let's start with
a roundup of our top stories. Officials in Switzerland say
around forty people have died in a fire at a
ski resort bar where partygoers were celebrating the New Year.
(00:52):
They estimate that more than one hundred others have been
injured after flames ripped through the bar at the popular
alpine resort crom Montana. Eyewitnesses told friend broadcaster BFMTV that
a candle on a bottle ignited the ceiling. Swiss President
Gui Parmerlan says it's one of the worst tragedies his
country has ever experienced.
Speaker 3 (01:11):
Their lives should be honored for what they were promise
energy a part of our shared future. We owe it
to them to respect them. We owe it to their
memory to make sure that such a tragedy never happens again.
Speaker 2 (01:27):
Swiss President Gui Palmerlan, speaking through a translator. Investigators are
retrieving some phones and conducting interviews with witnesses to see
if the venue had the correct safety procedures and emergency exits.
European Center Bank President Christina Guilds says Bulgaria adopting the
Euro is a testament to the continent's ability to cooperate
(01:48):
and withstand international headwinds. In a statement, the ECB chief
said the euro is a powerful symbol of what Europe
can achieve when we work together. She offered these words
in a video message posted on social media.
Speaker 4 (02:00):
We are delighted to welcome all the Bulgarians into the
euro Area using the Euro. I promise that I would
toast that moment, and of course I will raise a
glass with some good Bulgarian wine to celebrate the occasion.
Speaker 2 (02:15):
What Despite the guard's warm words, Bulgaria's entry into the
euro Area comes amid ongoing criticism of the country from
the European Union over its failure to make sufficient progress
on improving the rule of law domestically. The timing is
also sensitive. The Bulgarian government has recently been forced to
resign following anti corruption demonstrations, and public opinion remains divided,
(02:36):
with almost half of the population said to oppose adopting
the single currency. Stocks have opened the new year with
gains once again being dominated by AI and chip makers.
Asian shares climb as Samsung touched an all time high
and bid you jumped on the news that its chip
unit has filed for an IPO. Despite a recent pullback,
global stocks posted their strongest year since twenty nineteen last year.
(03:00):
Battel is head of the capital allocation team at all
Spring Global Investments.
Speaker 5 (03:04):
I think the same sectors that have been strong for
this year and a couple of years before are going
to continue to be strong. The other sectors that I think,
particularly for consumers, may be rather disappointing. So we still
think it'll be technology industrials relating to the electrical grid
and those will be the sectors, and aerospace defense will
(03:25):
continue to be the strong sectors and really all perform
those other sectors.
Speaker 2 (03:30):
Marji Betel's picking there after. The Nasdaq one hundred index
gained twenty percent last year, in a third consecutive year
of gains in other corners of the market. Gold and
silver have also advanced as trading in twenty twenty six
kicked off, building on their best annual performances since nineteen
seventy nine. China's BYD looks on tractors or pass Tesla
(03:52):
to become the world's biggest selling electric vehicle maker From
twenty twenty five, The ev Giant medits fullier sales target,
delivering four point six million vehicles that's almost eight percent
from twenty twenty four. Around half of those were fully
electric vehicles I mean. While Tesla is expected to report
later today that it delivered just over four hundred and
forty thousand vehicles in the fourth quarter, down eleven percent
(04:14):
from a year earlier. That would see annual sales come
in at around one point six million, marking the second
consecutive year of declining sales for Elon Musk's company. The
UK's Chancellor Rachel Reeves is quietly hammering workers with taxes,
according to new analysis from the Center for Policy Studies.
Speaker 6 (04:35):
The report by the right.
Speaker 2 (04:36):
Of Center think tank titled Who Wins Under Labor says
that under OBR forecasts, workers earning around fifty thousand pounds
today will be worse off by just over five hundred
pounds in twenty thirty even as pensioners and benefit recipients
enjoy real terms gains. The news comes after the Chancellor
extended a freeze on income tax and national insurance contributions
(04:59):
for in employees until twenty thirty one in a November budget,
a policy which the Treasury has defended as fair and necessary.
And Zora MM Danny has been inaugurated as mayor of
New York City, promising to lead as a democratic socialist.
The nearly two hours swearing in ceremony featured speeches from
two of the US's most liberal members of Congress, Representative
(05:22):
Alexandria Occasio Cortez and Senator Bernie Sanders. I'm Danny, promised
to the large crewdit City Hall to represent all of
those living in the city.
Speaker 1 (05:31):
I stand alongside over one million New Yorkers who voted
for this day nearly two months ago, and I stand
just as resolutely alongside those who did not. I know
there are some who view this administration with distrust or disdain,
or who see politics as permanently broken and while only
(05:51):
action can change minds. I promise you this. If you
are a New Yorker, I am your mayor.
Speaker 2 (06:00):
Danny is New York City's first Muslim and South Asian mayor,
as well as the youngest and more than a century
after the ceremony, Ma'm Danny announced three executive orders focused
on making housing more affordable. And those are your top
stories on the markets. The Mscish Pacific Index outside of
Japan is at one point six percent. Japanese markets are
still closed today, the Hangsang two point six percent are
(06:21):
Eurostock fifty Future is four tenths lower at the moment,
but we're looking at future as positive. On Wall Street,
Nazdak futures up by seven tenths of one percent. The
Bloomberg Dollars Spot indexes flats. We've got the euro at
one seventeen forty eight this morning. In a moment, we'll
look ahead some of the big themes dominating markets in
the year ahead, plus why today January twod should be
(06:42):
your default day. But first let's bring you more on
our top story in the devastating fire at that ski
resort in Switzerland during New Year celebrations. Our reporter two
at of Bios here with the latest tiba. What is
the latest that we know then about what happened?
Speaker 7 (06:56):
Well, we know that this fire broke out in the
early hours of yesterday morning. It was at La Conste
La Chimbar in the ski resort of Consmontana during those
New Year celebrations. Police and emergency services were alerted around
one thirty am and rushed to the scene to help.
At the moment, Swiss police are saying about forty people
were killed and one hundred and fifteen injured. There are
(07:18):
a number of others missing as well. The injured were
taken to local hospitals after the event, as well as
some facilities in Lauserne, Geneva and Zeri so across Switzerland,
and local officials are saying the blaze was the result
of an accident. Some eyewitnesses have told French broadcasters that
(07:39):
it was a candle on top of a bottle which
ignited the ceiling, resulting in the fierce blaze. At the moment,
police have accordoned off the area and they are continuing
to investigate the course of the fire.
Speaker 2 (07:52):
Where do we expect those investigations to be focusing on
from here.
Speaker 7 (07:56):
Well, we've heard from the Swiss president that he's confident
that the investigation will be carried out in a professional manner.
At the moment, investigators are trying to deduce a cause
of the blaze. They've retrieved some phones from the scenes,
and they are conducting interviews with witnesses. One part of
(08:17):
their work will be to see if the venue had
the correct safety procedures and emergency exits in place, if
anything could have been prevented. But also there are still
a number of people missing, as I mentioned, and police
are trying to identify bodies and are trying to get
in touch with the relatives of the deceased. Police have
(08:37):
now set up a helpline for families seeking information. Officials
are warning though that it could take days or even
weeks to identify everyone that died.
Speaker 2 (08:47):
This is too obviously a major tragedy in the Skimers
or Switzerland as a country as well. And how are
authorities they're reacting?
Speaker 7 (08:55):
Yeah, so for Switzerland, this is a major incident and
one that they are perhaps not used to. Well, there
was a very popular tourist destination Conspontana. It's also quite
a small town, and we've seen that in some of
the reaction, some of the injured have had to be
transferred to neighboring countries, just given the strain on the
(09:16):
health services in Switzerland because of the scale of the tragedy.
But this was President as well saying that it's one
of the worst tragedies their country has ever known. They're
still coming to terms with the scale of the incident,
but there was a significant immediate reaction from emergency services.
There were thirteen helicopters, forty two ambulances and one hundred
(09:41):
and fifty emergency responders sent to the scene of the
fire shortly after that fire broke out. So at the moment,
Switzerland is still coming to terms with the scale and
the tragedy of this event.
Speaker 2 (09:53):
Okay to Adabaio, thank you very much. Stay with us
more from Bloomberg Daybreak Europe coming up after this to
the markets now, and we're seeing stock markets in Asia
gaining in their first trading sessions of the year. The
prices of gold and silver also rising after volatility that
we've had over recent days. Let's bring in our markets
report of valeries. I tell for more Valerie. Good morning,
(10:16):
a positive start to the year. What's driving the gains
in Asia?
Speaker 8 (10:19):
Look, it's the positive start to the year, and it's
all down to again the theme of chips and ai
leading Asia stocks higher. We have the Hang Saying hire
by two point seven percent, the costby Index in South
Korea hire by two point three percent, and that's already
after the costb in South Korea was one of the
best performing stock markets of twenty twenty five. What's really
(10:41):
leading it is a few interesting things about chip IPOs
by Do announcing its AI chip unit has filed for
an IPO. That was one of the best performing stocks
in the Hang Saying this morning, and it's kicking off
what is expected to be a busy year for listenings.
Backing China's tech ambition, we actually had an IPO this
(11:02):
morning from a Byron. This is another Chinese ship maker.
It surged as much as one hundred and nineteen percent
in the first day of trading in Hong Kong. Pretty
impressive first session trading debuts, and follows a string of
some Chinese chip makers coming to the market.
Speaker 6 (11:18):
In December.
Speaker 8 (11:18):
We had the likes of more Threads and Meta x
some of those surging triple digits on their first day
of trading. The market is starting to coin these companies.
Speaker 6 (11:29):
Grouped together, the four Little Dragons.
Speaker 8 (11:31):
It's all about China's ambitions in the chip space as
Nvidia retreats from the China market.
Speaker 6 (11:37):
So a good positive session for Asia.
Speaker 8 (11:40):
Again, as you mentioned, we are seeing precious metals rebound
after a volatile December. We're seeing gold up one point
three percent, in silver up three percent, and it comes
after a pretty rough trading session for the last trading
session of the year, after the CME hyped margin requirements
for precious metals.
Speaker 6 (11:57):
But they're starting off the year on a positive footing.
Speaker 2 (12:00):
Well, let's think then, Valarus was about how this fits
into some of the bigger themes we're expecting on markets
in twenty twenty six. Of course, as you mentioned, AI
absolutely huge and driving gains in last year. Are there
going to be continuing questions about a bubble in AI?
Is there continuing source of bullishness from this area as
we look into the air as.
Speaker 8 (12:18):
Look, no doubt the source of excitement about twenty twenty
six does come a lot down to AI and this technology.
Fideli International calling it the defining theme for equity markets
in twenty twenty six, Blackrock thinking that it could keep
worries about tariffs and traditional macro drivers the back in
the back in the rear view mirror.
Speaker 6 (12:40):
If we continue to see this positivity about AI.
Speaker 8 (12:42):
Nat West calling it the powerful engine of economic expansion,
But you did mention bubble concerns, and I do think
there is still going to be a narrative of how
does this infrastructure build out, how do we build out
these data centers if we're still tight on funding. Private
credit has been playing a big part in funding some
of these data centers.
Speaker 6 (13:02):
We know that private.
Speaker 8 (13:03):
Credit has had some issues before with the lack of
transparency in some of their deals. But also you have
to bring into the fact how growth and inflation is
going to help or perhaps hinder funding for AI. If
we do have supportive fiscal policies around the world continuing,
which we're expecting to either from Germany, Japan, or the US,
(13:25):
probably would need to be matched by lower interest rates
in order to help fund out fund this tech buildout.
And for that to happen, we need to continue to
see the US labor market. We can slightly inflation return
back to track, and that would open up the door
for potential of FED easing for twenty twenty six.
Speaker 6 (13:44):
And off the back of that, lower interest rates meanings.
Speaker 8 (13:46):
That funding this debt surge to help this AI build
out could be more a bit easier than the market expects.
Speaker 2 (13:54):
Barerik tariffs and geopolitics were also big players for investors
in the past year. Do things look at a little
camera from an investor point of view going into twenty
twenty six.
Speaker 6 (14:05):
Well, given how.
Speaker 8 (14:06):
Big this technology AI driver is, I think the main worry,
at least in the geopolitical space is continued tensions between
the US and China over the tech race.
Speaker 6 (14:16):
You know, I mentioned it just at the beginning of this.
Speaker 8 (14:20):
Discussion about how Chinese tech companies are starting to pose
some competition to the likes of Nvidia, to likes of
US big tech and their dominance around the world. So,
how the US and China continue to have a strong
or maybe fractured relationship about AI and the tech ambitions
(14:41):
behind it could be something that's quite key for the
equity market next year.
Speaker 2 (14:46):
Briefly valuing the question of private credit, you mentioned it's
importance there in the tech space. Is there any sign
of the appetite for private credits abasing.
Speaker 8 (14:56):
Well, look, if we continue to have supportive FED policies
and lower interest it's hard to see credit having an
issue next year. But yes, it is going to be
such a key role in the AI buildout that of
course people are going to be concerned when they start
to see some of these numbers that the likes of
(15:16):
some of these data centers infrastructure buildouts are going to
be posing to to how much debt is already out there. Steve,
and I know we talk so much about the debt
already out there, at least on.
Speaker 6 (15:27):
The government balance sheet.
Speaker 8 (15:29):
Next year could really be about a debt surge at
least in the private sphere around this AI build out.
Speaker 2 (15:34):
Okay, Battery Taitel, a market supporter, thank you very much.
Just wanted to mention one of the story that we've
been reading this morning, an idea perhaps if your bored
or preemply disillusioned with New Year's resolutions. The behavioral economists
Ray Fisman and Michael Luca have a great piece on
Bloomberg about how today, the second of January, should be
your defaults day. That means that you should find some
time today to examine all of the decisions that are
(15:56):
made by default in your life, whether it's how much
you put into your pension or checking those subscriptions to
see if there are any that you're not using. They
delve into the science of this and quite defaults aren't
all bad, but they can leave some room for manipulation,
perhaps those continuing subscriptions that you don't check and allow,
I suppose money going out of your bank account for
no reason. Another suggestion from them, look at the apps
(16:18):
on your home screen on your phone. Are they the
ones you use the most? You could be saving yourself
time over the years too. They have some helpful suggestions
as well, things like perhaps just not just joining the gym,
but allocating appointments in your calendar to make sure that
you actually go. Carving out a time might actually help you.
Speaker 6 (16:34):
To do it.
Speaker 2 (16:35):
Perhaps some good ideas the inspiration to start the year.
We'll put a link to that piece on Bloomberg dot
com in our show notes. This is Bloomberg Daybreak Europe,
your morning brief on the stories making news from London
to Wall Street and beyond.
Speaker 9 (16:48):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 2 (16:54):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 9 (17:00):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 2 (17:09):
I'm Stephen Carol. Join us again tomorrow morning for all
the news you need to start your day right here
on Bloomberg day Break Europe
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Bobby Bones Show
Listen to 'The Bobby Bones Show' by downloading the daily full replay.