it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> good morning, this is "bloomberg daybreak: europe" i'm

lizzy burden in london. israel's army has resumed combat in gaza after a truce with thomas ends. meanwhile, the dollar weakens fueling more bets on an end to the fed tightening cycle. an early win at cop28 accurately -- after elite 200 nations agree to how to help vulnerable countries deal with extreme weather. we will go live to dubai very let's check on your markets as we do throughout the trading day here at bloomberg. futures pointing to a lower opening stateside, but more optimism here in europe. you've got euro stoxx 50 futures up 0.4%. it is the first day of december, but we did end november yesterday. 9% higher, more than the rally for the s&p 500, the biggest jump in more than a year.

the markets are starting to price the more dovish fed. bolstered by the fed speak but also the latest data. we'll get more on the core pce numbers and the latest jobless claims data from jill disis shortly. we will hear from jay powell giving himself a chance to push back against that dovish narrative. will he take it, is the question. relatively light changes in the treasury market right now. the two-year yield unchanged at 4.68% rate in europe, the narrative very focused on rate cuts. traders fully pricing a quarter-point hike by april from the ecb. that contributed to the selling off of the euro yesterday. you have got the euro currently just hovering below that 1.10 level. finally, a word on commodities because the major geo-political news this morning is that the fighting has resumed in gaza.

that affects the oil price, but you've also had this delayed opec+ meeting. not a lot of clarity out of it. we have to wait for the individual nine members on the size of the production cuts. currently brent trading just over $80 a barrel. getting towards $81. that's the latest on your markets. let's hone in on asian markets. we will head in to avril hong in singapore. how are the markets they are starting november? >> the asia stocks and bonds are starting december slightly softer, after the rally the previous month. we are seeing the south korean won leading the declines in the asia fx i made a selloff in the kospi. i went to focus on china. let's look at the csi 300 which look to set to close at its

lowest level this year. that was the 3474 handle we were keeping. if you can pull up the next page for you. this is also the market digesting that china pmi numbers for the caixin on manufacturing. that showed an unexpected jump, though we shouldn't read too much into it. we also had home sales number showing acceleration in the decline. i would like to highlight what we're seeing in the stock of evergrande. if we can pull up that page for you. i wanted to highlight development side of the property developer. it faces a hong kong court on monday and has to convince the court it has a solid restructuring plan, otherwise it could face a liquidation order. we are hearing that a group of offshore creditors are asking for controlling stakes in place of debt. fresh develop is for one of the

companies at the center of the property crisis in china. i mentioned we are seeing csi 300 negative, but paring declines of as much as 0.9% earlier. i date deeper into -- dig deeper into the pmi numbers if i can. kriti: lizzy: let's get back of the geopolitics, because the situation is developing. the israeli army is resuming combat in gaza, after the idf said hamas violated the ceasefire by firing towards its territory. there was no announcement from qatar, the main mediator, as the deadline for the week-long truce ended. for more, we go to paul wallace in dubai. paul: the truce was due to end at 7 a.m. local time this morning, that's 5:00 a.m. u.k. there was no announcement in their run-up to it. the two sides had extended the trees a couple of times before

hand, always at the last minute, but not this time. shortly afterwards, a few minutes after the deadline, israel pronounced it had resumed combat operations and that it's jets would be striking hamas targets in the gaza strip. this is not totally unaffected. israel and prime minister netanyahu have been very consistent that the war would resume. they said the ceasefire would never be permanent. that was nothing more than a tactical pause to get more hostages held by hamas released from gaza. nonetheless, there were plenty of countries and world leaders, including the u.s., that were hoping that this truce would hold at least for a bit longer. lizzy: so this was always going to be the case, but we were getting away with ourselves with our hopes. there seems to be a shift in tone by the biden administration towards increasingly stern messages about the humanitarian toll.

they listen to what secretary of state blinken had to say in tel aviv yesterday. >> i made clear that before israel resumes military operations, it must put in place he managed terry and civilian protection plans that minimize further casualties of innocent palestinians. that means more effective steps to protect the lives of civilians, including precisely designating areas in southern and central gaza where they can be safe and out of the line of fire. lizzy: what impact will this have on israel's tactics? paul: on the face of it, there wasn't much of a changing stance from the u.s. based on blinken's comments yesterday but there was definitely a shift in town. it's clear that the u.s. is getting more frustrated at the extent of the civilian deaths in the gaza strip. the health ministry of hamas is saying more than 15,000 people have died since the war began on

october 7. interestingly, blinken alluded to israel moving troops from the north of the gaza strip where they are mostly concentrated to the south. that's something that the u.s. is concerned about, certainly based on blinken's comments yesterday. behind the scenes, the u.s. is increasing pressure on israel to rein in some of its operations, certainly to do even more to stop civilians being harmed. lizzy: thanks to bloomberg's paul wallace. you can get rolling analysis and news on this important geopolitical story on the terminal. just go to tliv for that. that's the geopolitics, but is closely tied to the oil price, which tumbled yesterday following the opec+ meeting which we had to wait for. members of the group agreed to some one million barrels a day of additional supply cuts.

but crude traders are skeptical of how far traders will follow through on those pledges. let's get some clarity hopefully from bloomberg's anthony di paola now. let's start with the geopolitics. how is the return to fighting in gaza going to affect the oil price? >> the moment we haven't seen any impact of that yet. we are seeing oil down as you mentioned based on the results of that opec-plus meeting. we haven't seen that geopolitical premium at all in the oil price since the start of hostilities. but the oil market is looking for is any kind of disruption to supplies or production. we haven't seen any kind of attacks on oil tankers or facilities in the persian gulf. we have seen some issues with shipping around yemen. that's kind of a cold, hard look but the market takes at this conflict. there is a human tragedy in gaza. we have seen comments from the secretary of state blinken to israel to limit civilian

casualties. as that conflict does stay in that area and doesn't spread, we're not going to see that concern seeping into the oil market. from an oil market point of view we are seeing the price still down and not reflecting a risk of wider conflict at the moment, lizzy. kriti: so let's talk about supply then, because we did have opec meetings yesterday. where did they leave oil? it feels like having more members is making it harder to agree, not to mention the elephant in the room, we have got cop going on and there is the shift to renewables to factor in, too. >> opec has cast this wider net, to widen the tent if you will, because they wanted more supply in. they added brazil as an associate member. brazil won't have to cut but brazil is one of those non-opec countries that has been increasing production.

they are trying to bring more production in so that opec-plus can have a broader influence. we saw the uae and saudi joining with brics nations earlier this year. that's an extension of geopolitical influence. when it comes to cop, that was an issue that we're having an opec meeting on the same day as the start of cop. opec does have a standdown at the cop site. the issue is more around electrification for opec, because electrification of vehicles will take away from gasoline demand. that's a big pull of oil demand for opec+. diesel is a big transport fuel as long distance trucking and buses gets the chance to be electrified. they are watching that, but opec+ members want to go ahead with the transmission. for them, that's a transition that includes continued use of

fossil fuel for even decades to come. we are seeing those two things come together. at the short term, we're not seeing announcements of cuts by opec having real impact on the market. it's because of that messaging, the market not knowing who is going to cut what and whether they will stick to their targets that's why we see that reaction. lizzy: bloomberg's anthony di paola, thank you. now let's get back to the fed and the latest eco-data. we had the latest numbers yesterday showing that u.s. consumer spending and inflation, and the labor market growth have all cooled in recent weeks adding to evidence that the u.s. economy is slowing. let's go to our blue bird markets live executive editor, mark cudmore, for more. what do you make of these numbers and where does it leave jay powell when he speaks later today? mark: lizzy, good morning. this is absolutely a soft landing data set. there was this still disinflationary in pulse that's alive and well. we are seeing a cooling labor market and consumer, but nothing

dramatic. we even got a massive uptick in the chicago pmi. that was due to the end of the auto workers' strike in detroit. that wasn't surprising, we might see upside risk from the ism today. even though all this data says soft landing, if you asked what i make of it, i am still in the hard landing camp. i think we are going there imminently. remember that the wonderful, pleasant meadows of a soft landing are just the path to a hard landing. we have to go through that path in the way. we stop here? i don't think so. the problem is we have had such an extraordinary easing of financial condition. you ask, powell where he must sound hawkish even though he is seeing slowing data, because if not, he is basically approving of the easing of financial conditions which reignited an inflationary wave. either you have a choice of going away, the growth is really bad which might confirm recession, or he has got to sound hawkish and pushback on

the easing of initial conditions. lizzy: we will have full coverage of that speech later today. bloomberg markets live executive editor mark cudmore, good to see you. you can get a roundup of stories to now to get your day going in today's edition of daybreak. today they lead on the situation in gaza. they have the latest aged data as we were discussing with avril hong. and a couple of big corporate stories around a firm forced to shell its shares in a silicon valley startup backed by sam altman. and tiger global's biggest hedge fund racking up an 18% paper loss at the end of september. ouch. terminal subscribers can go to dayb . coming up, at cop, we will speak to the ceo of sweden's ingka group that controls most of the ikea stores. that is next from the climate

summit in dubai. this is bloomberg. ♪

lizzy: cop28 scored an early win yesterday as climate negotiations got underway in dubai. nearly 200 nations agreed on how to run a fund to help vulnerable countries deal with extreme weather. rich nations pledged at least $260 million to kickstart that program. meanwhile, ikea's largest retailer ingka group is planning to spend an additional one billion euros on renewable energy investment. yousef gamal el-din joins us from cop and has a special guest. >> let's get straight into it because we have been hearing

from several important voices that this rounds up the different views. jesper brodin, the ceo of ingka group joins us now. going into this event, you have been calling for more ambitious efforts to battle climate change, what you doing? jesper: in ikea, we are one of the companies in the frontline not only of combating climate change, but we are proving it is good business to be a good business. we are down in absolute terms by 40%. and on the way to get to 50% reduction by 2030. we are doing our part, investing away from the carbon economy. >> what about the materials you are using? furniture has been a bit of a sticking point. just in terms of being able to

make it more sustainable. jesper: the material in equation is about 50% of our total footprint from the forest all the way to the customers. we are addressing all materials, wood, plastic, and someone. glues are one of the areas where there is a lot of innovation. the important thing is you can look at singular topic's, but the important thing is the combined effort of the company moving towards the paris agreement. >> i want to talk about business more broadly. tell us about how the fiscal year started off. jesper: the last years have been satisfying for all of us through the pandemic. inflation, now recently deflation. we have a strange the war in several of our regions. -- we have extremist war -- cap experienced war in some of our regions. >> how would you describe

consumer demand today? where are you seeing pockets of strength because we had the beige book from the fed showing that consumers are beginning to pull back on the margin. jesper: definitely we see that there is a sentiment of worry out there. there is signs of less consumption. typically, in those times, ikea with aggressive low-price we take more market share. >> what does that leave you for 2024 in terms of what you can do with growth? jesper: i'm very humble about predictions of the future. we work with scenarios today. the bandwidth is wider. we have learned that through the pandemic. it is about how to act swiftly on the short-term, but how do you place yourself in the long term issues like here with organizations calling for phasing out fossil fuel. that is the most important question. >> on a personal note, i'm always in awe at the complex of

the of ikea's supply chains around the world. if anybody has a good view, is going to be you guys. describe to me the health of that. whether we are to a relative normal at this point. jesper: it is both a challenge and opportunity. we are diverse, many materials in many places. but we are hopeful. we experience still the aftermath of the pandemic. the important thing is how we transform. it is not about incremental change, but transformation in energy where we are investing into renewables and so forth. >> what about cutting prices? i think it was a couple of months ago you were making the point that that was the goal. is that a reality because last time i went to an ikea store prices were not down that much. jesper: you have to go again. i promise you, wherever you go, you will see prices going down.

from an economic reporting, we hear a lot about inflation which is one part of the truth today in particular in the consumer markets. but we have massive deflation upstream which is the logical response from the post-pandemic. we are making it more possible for people to forward their dreams. >> if you have to break it down geographically in terms of where are the biggest promises, you have invested heavily in china. what is your read their? these signals appear mixed in terms of momentum. jesper: china was one of the later markets for us coming out of the pandemic. right now it is one of the fastest growing markets for ikea. we are deeply in touch with our partners in china. how do we build momentum for growth? we are optimistic we will be able to pick up the speed in china. right now we are doing quite well. >> you don't need to pass on

additional costs from the transition to more sustainable materials? somebody has got to put a bill. you are delivering cost savings, how are you becoming more sustainable? jesper: it is a massive myth that sustainability what cost to start with. if it did, only rich people would afford it. the transmission and our responsibility is to make this affordable. then we could debate areas that are more challenging. but renewable energy comes at a lower cost than fossil energy. recycling materials comes at a lower cost than virgin rome material. plant-based food is much cheaper than meat and so forth. by addressing waste and becoming climate smart, it is one of the things we are betting will make ikea more affordable in the future, not the opposite. >> thank you for offering perspective on what the ingka group is up to. he is the group ceo there. lizzy: thanks, youssef.

what an insight into the impact of inflation on consumers, but also what ikea is doing on the climate. thanks to yousef gamal el-din live from cop28 in dubai. still ahead from the u.n. climate conference, we're speaking to a designer and climate activist stella mccartney. she will join us live at 6:30 a.m. u.k. time. don't miss that conversation. so much more to come, this is bloomberg. ♪

>> we have seen prices come down in the electric segment much quicker than we expected. the reason for that is we are moving out of the early adopters.

we are willing to pay for higher prices. early majority customers are not willing to pay that premium, so we see those come down and we inspect them to equalize with gas prices, so it will be about cost and capital efficiency, etc. lizzy: that was the cfo of fort speaking on bloomberg surveillance. also in electric vehicle news, tesla delivered its first batch of cybertruck's to customers after two years of delays and production snags. the vehicle comes in three configurations, including rearwheel drive, all and the so-called cyber beast. the cheapest version will cost close to 61 thousand dollars, 50% over the price must bam floated when he announced of vehicle in 2019. sticking with u.s. corporate news, disney shares rose in extended trading after the company declared a dividend up $.30 a share. the payment to shareholders will be made on january 10.

disney had pledged to restore the payout which was halted during the pandemic. the company is also under pressure to improve performance as activist investor nelson peltz seeks board seats. it is a busy day at cop28, we will speak shortly to the fashion designer stella mccartney live from the summit in dubai. don't miss that next. this is bloomberg. ♪

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i'm lizzy burden in london. israel's army says it has resumed combating gaza after a truce with hamas ends. asian shares slipped after november's rally, while the dollar weakens as a major measure of inflation eases, fueling bets on an end to the fed tightening cycle. an early win at cop28 after nearly 200 nations agree on how to run a fund to help vulnerable countries deal with extreme weather. we will go live to dubai. this get a check in your markets as we do throughout the trading day. u.s. futures pointing to a lower opening, but more optimism in europe. euro stoxx 50 futures currently higher, just about one third of a percent. you have ended november at a 9% rally for been the s&p 500, the biggest jump in more than a year, as the market is starting to price a more dovish fed. we have heard from our team

around the world about the latest u.s. data. and you have seen on the treasury market relatively light changes. if you look at the two-year yield, it is pretty steady. currently flat at 4.68%. in europe, too, the narrative dominated by the expectation of rate cuts. markets now fully pricing a quarter-point hike from the ecb by april. therefore, you have seen softer than expected eurozone inflation that was driving euro selling yesterday. euro-dollar currently below the 1.10 level. the commodity space in focus this morning because we have had developments in gaza. the fighting resuming. but also, the opec-plus meeting delayed a it was to -- as it was to yesterday, the outcome inconclusive.

we will have to wait for each of the nine members to tell us about each of the production cuts to expect. so brent crude is currently pushing towards $81 a barrel. back to cop. this is the big event of the day. the u.n. says 2023 is the hottest year on record. according to its weather agency, the world meteorological organization, global temperatures were around 1.4 degrees above the pre-industrial from january to october. that puts 2023 on track to be the hottest year ever. even with a month to. u.n. secretary general antonio guterres has warned the world is living through the climate collapse in real time. the first global stock take will be published at cop28 publishing an update on progress toward the paris agreement. ahead of that report, there is an early breakthrough. 200 countries agreed on how to run a funds to help vulnerable countries deal with more extreme weather. rich countries have pledged at

least $260 million to start the program. ahead of cop, jennifer zabasajja spoke to south africa's environment minister and co-lead of the global stock take, barbara creecy. >> our knowledge is best on the technical report that we have obviously seen. the technical report tells us that yes, the paris agreement has helped. but we are not on track as a world to meet the global average temperature increase of 1.5. which assigns tells us is necessary if we want to avoid the worst affects of climate change. beasley, even in a 1.5 degree world, there will be severe effects and implications of climate change. >> what have your conversations been over the past few months given this role you are in?

>> what we have to do is formulate what will be the political report. there is broad agreement amongst countries that the report must be backward looking. how far have we come? it must be forward-looking. how will it help to guide future indices. >> at the end of cop28, the report? >> yes, 2024 is when countries will be affected to submit revised indices to the the u.n. what is also broadly agreed is that the report has to reflect on the best available science. it has to reflect issues of equity. outside of that, there would be still fairly big gaps between what countries believe we should be looking at as to why

historical targets have not been met. and how much granular detail you would want to go into for your advice on the future nature of nationally determined contributions. that is really where the conversation is at the moment. lizzy: that was south africa's environment minister, co-lead of the u.n. climate change conference, barbara creecy speaking to jennifer ahead of cop28. some stock news in the u.k., we have lost a few greats this week, but it was a particular shock to learn of the death of former u.k. chancellor alistair darling at the age of 70 yesterday. the role he will be remembered for is as chancellor during the financial crisis, that he was also one of only three cabinet ministers to serve through the entirety of labour's last 13-year stint in government. the tributes overnight show he

was respected by colleagues from both main parties, a rarity in politics, in tony blair's words. to look back on his life is tom metcalf. tom, thanks for being with me. darling is best for member for his role not on budgets, but saving the british banking system to put it frankly. >> you will be remembered as one of the great postwar chancellor's. he came in just before the financial crisis hit. as he was taking that job, he said, think it will be quite relaxing. within a matter of weeks he realized this is going a certain route. you had northern rock, rbs. that was a frantic few years working alongside gordon brown. the jury is out on where the decisions right across the globe. he smoothly avoided a were situation. lizzy: you mentioned his steadiness, that has come out in

lots of the tributes prayed gordon brown is a rather mercurial character. he was when he was prime minister. you think the financial crisis's impact in the u.k. would've been worse had it not been for alistair darling? >> happy accident that those two work together. they balanced each other out. as to darling, he was always keen to be clear with the public and basically say, we are in a tough moment. that really helped because that was not gordon brown's initial instinct. they made a good team. the tributes coming in not just from the labor side but across the aisle show he was unique in that he was really respected and seen as a person of integrity on both sides. lizzy: what he had in common with gordon brown was they were both from scotland. he played a huge role in bringing scotland in the united kingdom. >> again, speaks to how widely respected he was on both sides. effectively, the spokesperson or

moving force against the independence of scotland. that past, having huge impact on the u.k. going forward. he said after the fact that that was the thing he was most proud of. it has had such an impact going forward on this country. lizzy: managing editor for mef finance and financing. i have been going through my old texts with all the stair darling, always sweet and polite. at 3 p.m. u.k. time an update on the u.s. ism manufacturing. the print is expected to show the sector remaining in contraction for november. at 7 p.m. u.k. time, the fed chair jay powell and governor lisa cook take part in a university roundtable on tech innovation and entrepreneurship. will he push back on the dovish narrative? finally, day two of cop28 under by. we will bring your conversations today including with the greek prime minister mitsotakis and

the astrazeneca ceo. much more to come. stay with us for all these conversations. this is bloomberg. ♪

lizzy: all back to "bloomberg daybreak: europe." i'm lizzy burden in london. it's just gone 6:41 a.m. in london. let's bring you some stories we are watching today. u.s. treasury secretary janet yellen reiterated the need for the u.s. to reduce its reliance on china in supply chains. the over-dependence makes america more vulnerable to risks. she touted the recent strength in economic data which suggests the fed could be on track to end its tightening cycle. same with the u.s., but turning

to corporate news, texas attorney general ken paxton suing pfizer for allegedly misrepresenting the effectiveness of the company's covid vaccine. the lawsuit accuses the company of seeking to intimidate anyone who questioned the product. paxton has been a vocal opponent of covid safety mandate since the onset of the pandemic. throughout the day, we will bring you interviews from cop in dubai. let's stick with the climate theme. australia is bracing for another potential destructive bushfire season as summer starts. the first el niño event since 2019 is set to increase that risk. as paul allen reports, this time, fire fighters will have some new tools including ai. >> it went down in history as australia's black summer, the 19-week. period in early 2020 when 4

million hectares of the country burned. that is an area half the size of california, or the entire united kingdom. the smoke circle the globe. the stage is set for a possible repeat. this map showing large areas of australia facing increased fire risk. bloomberg economics is forecasting property and casualty insurance cost plan must really to the year ending june 2024 to be well above the 10-year average of $3 billion. >> we have seen significant drying out of the landscape following three years of above average rainfall. that has promoted grass growth, and obviously, increasing fuel. and then we have started to see really dry spring, winter into spring, so elevated risk. >> to combat that risk, the fire service commissioned athena, a world first firefighting ai.

athena analyzes data from wind forecast to rein structures, populated areas and even social media feeds to predict the fire's next move. >> it takes a map of those fires and protect what they will do over two hours, four hours, 12 hours. it will also tell us what structures or assets will come into threat. we can have more than 100 fires burning at any time, this stops us making mistakes, or missing something. >> the athena's modeling is supported by a bushfire simulator built by a government research body. fire services added australia's largest firefighting helicopter for the coming summer, hoping history doesn't repeat but really, in case it does. paul allen, bloomberg sydney. lizzy: we will continue to bring you plenty more of live action from cop28, including some key exclusive interviews. we will have conversations with the executive director of the

green climate fund. that is at 7:30 a.m. u.k. time. then the engie ceo. plus, the astrazeneca ceo. finally, the prime minister of sri lanka at 9:30 a.m. u.k. time . plenty of important insight from our exclusive guests throughout the morning. this is bloomberg. ♪ troducing the limited edition disney collection from blendjet. nine exciting designs your whole family will adore blendjet 2 is portable,

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lizzy: come back to "bloomberg daybreak: europe." you have got assets pretty much calm despite israel's army saying the fighting has resumed

in gaza read we will keep but we go back to cops now because sustainability and the carbon footprint of the clothing industry is driving consumer choices more than ever. our very own francine lacqua is live at cop28 rejoining her as a special guest. francine: i'm so excited because i've been waiting to talk about sustainability for quite some time. she is kind of a star. she started a lot of the sustainability progress in fashion years ago. stella, thanks for joining us. we are at cop28. you have this beautiful new clothes that are at the forefront of the technology that can be used to make clothes more sustainable. fashion is 8% of carbon emissions, what are you here to achieve? stella: i'm here to resent one of the most harmful industries on the planet. there is very few fashion houses that can be here, so i feel honored. i'm trying to sign a light on how harmful the industry is to the environment.

to the people that work in it sometimes hurried certainly, the animals that are killed for it. we are here to provide solutions. i'm always trying to look at the positive. as a brand, we don't kill any animals, use for or leathers, or use any pvc's. i'm here to talk about the industry to provide a sustainable solution, and also to encourage the leaders in the room to wake up and help us change policy and bring in legislation. francine: there is all these amazing textiles that look like leather that are not leather. some are seaweed or kelp, the latest one is a collaboration using grape skins. stella: we have been exploring this area over 25 years at a stella mccartney, so a lot has changed. here at cop, we are showing the young innovators and new businesses that are swapping out bad for good. we have been using mushroom leathers and all different kinds of leathers.

for example, using grape skins from a veuve clicquot collaboration trade these are two harmful industries, leather and wine. it's a beatable bag and it is basically solving the issues and hopefully still being sexy and desirable at the same time. francine: is this scalable, are you seeing more adoption of these fake leather? stella: we call it faux leather. there are some that are really scalable. we have one at cop we are showcasing which is a plastic-free non-leather. it's absolutely the same as a real leather to touch and to look. it goes through the same rigorous testing, but it is plastic free, natural and it is absolutely incredible. it is scalable and that is one of the most important questions. we have so many other

innovations. behind me, we have knitwear made out of algae. we have incredible completely 360 breakdown able polyesters. we have a mixer here. francine: is there interest from fashion companies to collaborate so it becomes more widely adopted? do customers want it? stella: we try to inform people. we are trying to create beautiful, desirable products shoulder to shoulder with our industry to show that you don't have to be harmful to the planet and can still create beautiful, desirable things. we have the solutions. other people are trying to adopt it. but we really need to consumers to have the information. they need to know that a truck load of fast fashion is burned every second or buried. over a billion animals are killed every year. the chemicals used to tan

leathers can be cancerous to the people working with them. if you have that information, hopefully, you will consume in a more conscious way. francine: do leaders need to regulate it? you spend a lot of time at cop speaking to world leaders and executives, are we going to have something concrete, or is it not one of their priorities? stella: it is lower down the priority list, but that is honestly why i am here. i am kind of in the face of people. it is my job as a sustainable fashion designer to highlight that we need policy change. as an industry, we are one of the most harmful, the second-most harmful in the world. we need to have limitations put on us like all the other industries that are less harmful. we need to work together to achieve this, but also we need to be incentivized. the future brands of fashion, the next generation need incentives. i can get taxed up to 30% more on a nonleather good going into

america, which is crazy. i take that on my margin and i am penalized for working in a more sustainable way. definitely, we need laws passed that will help my industry be a better, cleaner industry. francine: the product is more expensive to start with because of the technology that goes into it. stella: we develop a lot at stella mccartney. we work close with our suppliers. we have regenerative cotton here, i'm wearing that right now and that took us years to work with a family-run company in turkey. they started with five hectares that they gave for our pilot, now they are at 200. unless we start working on in this way, we will not see suppliers incentivized to do it either. francine: what conversations are you having with lvmh, they have a minority stake, do they want to do better on sustainability? stella: it gives a huge signal to the fashion world. bernard arneault is my business

partner. i am his cheap sustainable advisor. these are the conversations i am having with him. he knows this is the future. to infiltrate from within is kind of what i do. that's what my relationship with the fashion industry is, to show that there is another way. we are working hard at trying to make change. francine: some say we should just consume less. how do you marry the two? stella: we should consume less and consume better. we should invest better. it is hard because this comes with a price point, working in a more sustainable way, be inclined to the -- being kind to the planet, to the people that work on the supply and farming. it costs more, that is a sad reality. it at the end of the day, it is the planet and for the industry. out of $500 billion worth of

waste from fast fashion every year, there is business opportunity. we have incredible examples, protein evolution is taking waste and breaking it down in an enzyme way and is circular. we are creating a new thread product that you can see. waste can be a business opportunity. vintage fashion, i'm a big advocate of thrift stores and renting fashion. these are business models that can be the future and hopefully, gives everyone access to the conversation. francine: you are seeing that more and more. stella mccartney, thank you for goni us. we will have more interviews throughout the day. we are speaking to three world leaders today. lizzy: no rest for the wicked. it will be a busy one at cop28. thank you to bloomberg's francine lacqua. we will continue to bring you plenty more, including some key exclusive interviews. just to set you up for the day,

if we look at a couple of charts, we were discussing earlier the latest u.s. pc data following to its lowest since march. feeling the rate cut bets. but you can see personal spending exceeded pce growth in october, which shows the consumer is still resilient. we will hear from jay powell later. does he push back on the dovish narrative? they will take you through all of that and more, it's markets today next. this is bloomberg. ♪

♪ >> this is bloomberg markets today i'm anna edwards live in london. mark our executive