>> good morning, this is "bloomberg daybreak: europe." i am lizzy burden. these are the stories that set your agenda. investors cautious amid an announcement tomorrow that could unlock 2 million yuan of stimulus.

tesla's long awaited is here. elon musk unveils at an event in california. spending cuts and tax hikes on the business and the wealthy. the french budget 60 billion euro effort to tackle its colossal that pile. -- debt pile. we will bring you all the details. lizzy: good morning, and happy friday. european futures pointing higher toward the end of the week after we got the cpi print out of the u.s. yesterday harder than expected, but also a slowdown in the labor market, so we present i had a what the federal reserve as it plots its with beth i had. -- rate path ahead. peering those bets took the wind

out of the cells of the s&p yesterday after the record-breaking rally, but futures on wall street pretty flat as things stand the moment. let's flip the board over to the cross asset picture, because treasury yields digesting this pairing back of rate bets, but also the fed speak. atlanta fed president raphael bostic saying he is totally comfortable with skipping a rate cut. two year yield under the 4% level, 3.96%. one .09 on euro-dollar -- 1.09 on euro-dollar. brent $79 a barrel and gold 2645 per ounce as we close of the week. let's head over to asia. we are looking toward the announcement from the chinese finance ministry of potentially more fiscal stimulus. avril hong is in singapore. one are the markets looking

like? avril: it is bracing for disappointment. take a look at how the csi 300 is faring going into the weekend with those declines and calibrating their expectations of what realistically we can see from china's finance ministry tomorrow at 10:00 a.m. local time. we have investors expecting $283 billion of fiscal stimulus being announced, but it is not just the amount. it will be important to watch the target of its support, because that will give us a sense of where the government's priorities lie. what a have seen on chinese stocks is going against the grain of the asia-pacific where they are managing to clock gains and shrugging off more or less what we got out of the harder than expected u.s. cpi print. flip the board. if you are wintering to the

extent to which of the cooling in chinese equities have left us, take a look at the september bottom all the way to the october peak. the recent petering out of declines has taken against you 24%. keep that in mind. i want to highlight what we are seeing in the fx space, because even though equities are downed the yuan is managing gains onshore and offshore on a day when asia-pacific currencies are beginning ground except for the japanese yen. the korean won getting an added boost after a hawkish cut from the central bank which joins a global wave of easing, a cut which was as expected but to some game in hawkish especially if you consider how five out of the six members on the board think that the rate will be kept at 3.25% for the next three months. lizzy: we thank you, and it will

be a busy weekend for you. we look ahead to the market reaction on the china announcement on monday. we have said three fed officials shrugging off the higher than forecasted u.s. inflation print for september suggesting the u.s. central bank can continue to lower interest rates. let's get analysis with valerie. >> the break yesterday on cpi came in harder than expected not just on one component but all four. headline cpi year on year, month a month and the corporate year on year and month a month .10 of 1% higher than expected. if you flip the board and take a look at the jump in jobless claims grabbed the market attention more than this hot cpi print. it was the biggest jump in three years. a lot of states reporting higher jobless claims came from states affected by the hurricane, so

there is an emphasis for policymakers to look past this jump in jobless claims, but the market did not. they drop six basis points on yesterday's session. they fell six basis points yesterday, fell below the level of 4% and are down six basis points the last two sessions. lizzy: two quarter point cuts appearing to be the new status quo. valerie, we thank you for the update there. next to hollywood style productions, the tesla ceo elon musk unavailing a robotaxi without a steering wheel or petals at an event in california. a moment of truth. >> we expect to be in production with the cyber cat highly

optimized for autonomous transport. i tend to be optimistic with time frames. in 2026. lizzy: let's bring in katrina nicholas for analysis. there was a lot of hype leading up to this event. take cuts through what we know about the cybercab. will it be enough to satisfy investors? >> there was a lot of hype around this. this event was held at a movie lot at warner bros.. it was delayed by about one hour because there was a medical emergency in the crowd, but there were over one million people watching just online, and a very futuristic car drove out. the doors opened like butterfly wings, and musk stepped in and went for a ride.

this car has no steering wheels or pedals, and that is hard to engineer when it has to brake. there were 50 models driving around this movie lot people could interact with and take rides themselves. elon musk said the cyber cab should be available in 2026 or 2027 and cost below $30,000. also there was a prototype of a robo van musk said could transport 20 people at a time and also on board was tesla's humanoid robot which could do anything you want from babysit your kids to walk your dog or mow your lawn. it was behind a bar serving drinks to people. at the end of the event there were 3 million people watching this online.

the event itself was pretty brief. it was over and done within about 40 minutes. lizzy: i feel like you have just taken me to the future. even though musk would have everyone believe there was a lot to be excited about, i guess to some degree the jury is still out. >> the event itself was light on details. there was this $30,000 number, but outside of that there were not a lot of facts and figures. there has been a lot of talk about this robotaxi fleet. you would be able to have it autonomously drive around the street when you are not using it, and musk said you could have a fleet of cars, but there was not much detail other than that. analysts will be skeptical about this $30,000 price point and also the timeline, because as we know musk as loan past

timelines. the separate truck did not go into production until late last year. there also was not much detail of a cheaper car. people have been expecting a tesla that would price closer to the 25 k mark, and that would perk up sluggish tv sales. it was light on detail how tesla plans to advance its full self driving technology to a point where it will not need any driver supervision. we heard some analysts after the event called this more of a controlled demonstration rather than a presentation. lizzy: katrina nicholas taking us to the future. thank you for that update on the latest robotaxi. speaking of difficult needles to thread, france is looking to

trim its colossal debt pile, the country aiming to deliver 6.7 billion euros worth of tax hikes and spending cuts. kathleen, finally we have got the details. where is the ax going to fall? >> it is a pretty big effort, 60.6 billion euros needed in the budget. 2/3 or a little more will come from spending cuts, and the ministry, the state will have the biggest effort. they will not replace some public servants. there will be less spending for nongovernment agencies, social security, pensions on inflation will be delayed by six months, so less money for pensioners.

local authorities will have to tighten their belts as much as 5 million euros. the biggest chunk will actually come from this exceptional tax on the biggest companies. we had a few more details on this. it will concern 450 companies with more than one billion euros it will be bigfor companies generatie thaillion euros. we found out on exceptional tax on maritime transport. some production tax cuts will be consoled, and there will be less incentive for companies, for stps to hire young taen or lower ie jobs, something that business has said could damage employment.

individuals will have to contribute to this et the wealthiest, 65,000 of the richest households in france, those without children, a couple earning than 500,000 euros a year, as will be taxed. electricity prices hae one down, o they think they can put back some taxes on electricity. transport finally will be taxed. new tax on plane tickets expected, and also when you die -- buy a new car which is not an electric car, not a good signal. lizzy: fears of an exodus of wealth from friends -- france, same fears you have in the u.k. ahead of the october 30 of the budget. the point was to balance the

books. i wonder how much it will squeeze the french economy and whether this is enough to comfort investors. what can we expect a response to be? >> we will see the response quickly, and tonight with fitch the credit rating agency will publish their assessment tonight. the french economy will need 300 billion euros of bonds. we will see in bonsall's reaction from investors. barnier said there will be a few objections last night. the far left, which is quite influential in parliament, as actually said this budget will be completely change, so the debate in parliament over the next couple of months will probably be heated, and michel barnier may have to use this constitutional article 49.324 is

the budget in parliament without info. that was used last year in order to pass the very controversial pension reform without a vote. that is assuming marine le pen does not support a vote of no-confidence. she has already criticized this budget, especially the delay of pensions, saying that this could a theft for pensioners. we also heard from them head of the french state auditor who actually said there are too many taxes in this budget. the social discontent of french people being fed up with taxes. lizzy: we thank you for that reporting out of paris. we will continue this conversation at a pretty time a.m. -- at 8:30 u.k. time.

interesting to think about how it fits into mario draghi's outloo r come tentativeness in europe, the slow agony he has burned out. coming up, changes at the top. stellantis replacing its cfo and kicking off the search for its top executive. we will bring you that next. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe." futures pointing higher for zero stoxx 50 futures, and let's get to a corporate shakeup. stellantis replacing its finance chief as part of a broad management overall as it tries to regain investor trust and stabilize its business. the ceo will be replaced, and we get more analysis from oliver crook. you have stellantis replacing it cfo. what is the back story? >> after they got that profit warning about two weeks ago that sent shares careening after what has already been a very bad year for the auto sector. for stellantis, they came up

with a dramatic profit warning and they had to do something. that's something after two days of board meetings in the united states is a reshuffle across the business, so we replacement up of the cfo, the coo, the north american cielo. the brand heads, and a different landscape for the auto industry in general. there are idiosyncratic issues at stellantis in terms of large volumes of inventories they have in the united states. they have had issues with the unions. so money goes straight from the board meeting to italian parliament where they are concerned about factory closings and jobs getting cut. stavaris himself, his contract is up. again he weather the storm and bring exciting new cars to the market, and that is exactly what we will speak to him about on monday. lizzy: difficult landscape for

the auto industry illustrated by delivery numbers from mercedes and bmw we got from the china market. not looking good. >> we got profit warnings from those two carmakers as well and got the delivery numbers yesterday, so we got more flavor as to what was driving that. overall deliveries of bmw down 30% and a mercedes down 3%, but when you drill down into the chinese market, you think the market has turned the corner? absolutely not. mercedes sales in chinatown 13%, bmw down 30%. that is huge. i will bring you a silver lining for bmw. there is a battery electric vehicle story we are telling overnight from delivery numbers. bmw has been able to outperform the rest of the market. they manage to get 10% growth in ev's.

mercedes, down 30%. a poor picture for the auto market generally speaking. lizzy: you have to wonder if there is any hope of winning back market share from these chinese brands. oliver crook has already teased us. we have got this live reporting from the paris motor show monday. we will be speaking to the ceo of stellantis and other leading figures from europe's auto industry. the republican presidential nominee donald trump says he wants to boost the u.s. auto industry by making interest on car loans fully tax-deductible and renegotiating a trade deal with mexico and canada. she was speaking in michigan, home to the u.s. car sector. trump says he would ban chinese self vehicles from american roads. mr. trump: the autonomous

vehicles will be stopped from operating on american roads. i will close the loopholes that are allowing chinese vehicles to creep into american streets. lizzy: coming up, governments pledged bils t capture and store carbon. we will be taking a look at whether it is enough to make a difference. stay with us for that. this is bloomberg. ♪

lizzy: president joe biden says congress should return from its recess and pass emergency relief funds after hurricane milton cause widespread damage in florida. the storm left 10 people dead and more than 3 million homes and businesses without power. florida's governor says the

state appears to have escaped to have escaped the worst case scenario. give u.k., which is been at the forefront of europe's carbon capture push. the government plays money to capture greenhouse gases, but is the country on target to meet -- on track to meet its target? joining me now is allen. 22 billion is not a small amount . what impact do you think it will have on the u.k.'s carbon capture industry and emissions? >> good morning. it is a significant amount of money and a long way in showing the support the u.k. government is offering the industry. however, what we know at this point is the projects that will receive this funding will contribute 3 million tons of

annual carbon dioxide capture capacity and 80 million tons of carbon and storage capacity for carbon dioxide. the u.k. governe has set a target of getting to 20 to 30 million tons of capacity by 2030. there is a huge difference. the big challenge is this will take a long time, and it is expensive. things need to move quickly if we have to close the gap. lizzy: just very briefly how does this compare to the rest of europe stepping up funding for carbon capture projects as well? >> the eu has a more ambitious target of getting to 15 million tons of annual carbon capture and storage capacity in the bloc

by 2030, but the funding is not as big as what we have seen in the u.k. we estimate $16 billion u.s. has been allocated to carbon capture projects in europe outside of the u.k. compared to $30 million allocated in the u.k. more targets, less capacity in terms of funding, so that means there is a huge difference there. lizzy: allen, we thank you for that analysis. we will have plenty more on the program.

>> good morning, this is bloomberg daybreak: europe. i'm lizzy burden in london in

these of the stories that set your agenda. chinese shares slide investors say ahead of a government announcement tomorrow that could allot up to 2 trillion yuan of new stimulus for china's economy. tesla's long awaited robotaxi. elon musk unveils the prototype at a glitzy event in california same production may start in 2026. spending cuts and tax hikes on business and the wealthy. the french budget 60 billion euro effort to tackle the colossal debt pile. a very good morning. happy friday. who got futures flat on both sides of the pond as we end -- head towards the end of the week. u.s. inflation data coming in hotter than expected yesterday, but also a slowdown in the labor market and it's the second da print that actually seems to matter more at th ment to the market. is a difficult combination as the fed plops its path ahead. will it go from a jumbo cut to a smaller cut were no cut at all. it took the wind out of the s&p

sales yesterday after this record-breaking run peer wall street futures are flat to the downside. but if we put the boarding go cross asset. treary yields are now pretty steady. having fallen on the back of those fat cut bets. he saw a rise in the dollar. euro-dollar now 109. rent trading at $79 a barrel and go that 2644 per ounce as we head towards the end of the week. let's dive into the eco-data out of the u.s. underlying inflation rising more than forecast last month. it represents a pause in this recent progress towards moderating price pressures. core cpi, which excludes food and energy costs, increased by .3% for a second month. speaking to the global head of private capital advisory over at raymond james very good morning. i wonder how you interpret this

economic data and where it leaves the fed and therefore equities. i wonder is it actually good news that the fed may be doesn't have to cut as aggressively as we thought. >> i think the question is now the fed is focused on this dual mandate. it was all about inflation for the last two years, as it should be. now that they are focused on the condition of the labor market, where did they go from here because it's all in the balance in terms of what the labor market data says and what the inflation data says. >> are they too focused o the labor market? >> i don't think they are to focus because they haven't been focused on t. the u.s. economy is doing well nothing is wrong, so what are they trying to fix? rates are restrictive, they need to bring them into balance for the so-called recalibration as the fed calls it. but what is that neutral rate? every sms to have their own opini summer around 3.5% seems to be where consensus lies. so there is some easing to do ut t what pace? it'allabout pace of cuts and

the messaging behind it to the market. and i thh's where there is going t be some confusio last thing i will add is there will be noise in the data given to hurricanes, given the strike of last week, there will be noise in the data coming through for the fed. lizzie: i'm thinking as well about the election and what lies further out in terms of the fed. lots of people talk about their inflationary effects, potentially of trump. do think we could see hikes from the fed in 2025? >> the fed is often criticized for being too backward looking data-dependt. so by the time you see the inflationary impacs in the fed willing to take action, we might be at the end of next year or beyond it into 2026. right now the path for rate cuts into the 3, 3 5% range into 2025, tt seems like the glide path. it depends on how much trump does and how quickly to impact the fed's direction. >> while we talk about donald

trump, i think you said he would be positive for m&a. but when you think about jd vance signing onto legislation that eliminates tax breaks for mega mergers, do you think this combination would be better for m&a? >> it depends on whether it's policy the trump administration implements or not. in the last trump administration we do know because we experienced a big t regulatory movement, especially when it comes to merger approval. that slowed down meaningfully under this regime under biden and lina khan. if trump wins, that will certainly loosen up the wheels when it comes to getting m&a executed. that would be good for the m&a banking business models around the world. lizzie -- >> if we could bring you to the u.k., it's one of the

leading private wealth advisors. are your clients packing their bags, are they out the door as we look ahead to the october 30 budget? >> there's a lot of noise around that budget. not a day goes by without us hearing about another constituent that may be impacted. the messaging around the busted -- budget needs revisitation. if you make the u.k. less competitive in a meaningful way, capital is mobile, capital will leave. we have seen indications that the carry taxation rules in this budget for private equity may not be as what was first intricate -- indicated by rachel reeves. that's good news when it comes to keeping the large pockets of wealth and their decision-makers in the country. lizzy: i wonder if you could see the same out of france? >> you have seen it when it comes to big pools of private equity out of france. france has a private equity community but it's relatively small compared to that of the u.k. same with u.k. public equities. regulation and lack of

competitiveness means the uk's public markets are smaller than canada's. that's not a good signal for our markets here and they require support. so i think that's what we are looking for. how much is the anti-competitiveness movement impact u.k. versus others. lizzy: you also say private wealth is increasingly interested in private equity, why do you think that is? >> because of diversification. you have a very interesting time in the market for the last year, year-and-a-half, fixed income was a great place to be. now you may want to dial into equities but equity valuations still remain punchy. private equity means diversification to wealth portfolios around the world. and it means you are able to enter certain sectors, certain geographies and good sensible pricings between eight to 16 times depending on the sector. that's a good entry point compared to publix. lizzy: what are you focused on this season?

>> looking for earnings normalization and looking for where guidance comes out in 2025. because of where inflation is, it has come down a lot. you cap passed through margin expansion through the customer, so where will their earnings growth come from, those drivers will be interesting. lizzy: always good to have a around the table, we thank you very much. i mentioned earnings. it's kicking off today. we've got u.s. bank earnings getting underwa. jp morgan's top line seen as robust on higher trading revenue. over at wells fargo, the growth in deposit related businesses probably won't be enough to offset shrinking net income -- net interest income. let's get analysis in a preview from bloomberg's charlie wells. good morning. we have seen bank stocks rebounding since tumbling off that jp morgan warning last month. do you think there's enough concern about net interest

income baked in? >> all eyes will be on net interest. it's the largest source of revenue for these big banks. daniel pinto of jp morgan last month had to warn that may be analyst expectations were too positive in a high rate environment, that metric had come in so strong, it had come in at record levels for banks. management really wanted to set lower expectations there. the question here is, is this a management tactic to set lower expectations then exceed them, later today we will figure it out. it's a real concern for the banks because it's a huge source of revenue for them. lizzy: is this the season that we finally get to see robust dealmaking? charlie: we've heard about this for years and bankers love to say that we were just a few seconds away from this deal pipeline starting to flow and flow. often around this table. i remember last year sitting here talking about the instacart

ipo and how there would be a huge wave of ipo's that would come. it seemed to look more like a bit of a ripple. but if you look at the expections for jp moran there equity underwriting has bn particularly strong. so, if they are able to bring in the fees, not just from this quarter but going ahead, that could offset some of the hit they take on the interest income. lizzy: where do you see bank stocks up significantly this year, what will investors need to see the positive momentum? charlie: jp morgan share price up. the s&p 500 is up 21 percent. even wells fargo reporting later today up 17%. this is really going to hinge on whether or not they can successfully pivot to the slower rate environment. if they can take the hit from that interest income with making less on loans that may be to get more loans coming to the door.

maybe they get more fees from investment banking. maybe the consumer is stronger so credit risk goes down. that will help keep these talks going forward. what could make them go backward, what could make them decline as if we see a gap. if we see a hit in the interest income, but not a speedy pivot to the lower interest rate environment. we don't see that pick up and off -- in activity. lizzy: charlie wells setting us up for a bank earnings that are coming out later today. but we have plenty else on the docket for you. 20 minutes time we will get the latest u.k. gdp numbers. crucial for ke tarmer, the new u.k. prime minister heading towards his fis100 days in office this weekend. the expectation is for a slower growth pace this quarter. we keep an eye on that. at 1:30 p.m. london time we look at the u.s. ppi reading. that they give us comfort to balance out that cpi print

yesterday. then around noon time in london we get jp morgan, ells fargo as well kicking off those bank earnings. plenty on the docket. coming up right here on bloomberg daybrea: europe, we will explain, exore how ai is coming to the legal world. we will ek to elinor lightbody, who ceo of luminance, a company in the u.k. who is bringing artificial intelligence to that sector. that interview next. this is bloomberg. ♪

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lizzy: welcome back to bloomberg daybreak: europe. a&e suffered its biggest stock decline in more than a month after it unveiled new ar chips at an event in san francisco. investors had also been hoping for new information on customers and financial performance. the stocks remain up 11% this year. amd has emerged as the biggest contender to nvidia in the lucrative market for ai processes. the amd ceo and president lisa tried to reassure investors saying that she's optimistic about the man for the industry. lisa: this is an incredibly fast growing market. i mean, if you think about what we've done just over the last 12 months or so, we seen my 300

demand increase from when we started the year two in our most recent earnings we actually said we would be over $4.5 million in this important ai accelerator market. lizzy: there is in a sector that ar isn't -- ai's and touching and that includes the law. artificial intelligence is a legal minefield, so it will create a whole load of new work, but on the other hand there are fears it will do a lot of the work that they once did themselves. it will spare them a lot of drudgery. luminance is one of the companies offering that service. it has developed a legal large language model, and i'm pleased now to be joined by the ceo, eleanor lightbody. great to have you with me in the ceo. what i usually hear from text ceos is that ai isn't going to fill jobs, it will just let humans get on with more creative and analytical tasks. for all the petrified paralegals out there, what can luminance do

that a lawyer could -- could it? eleanor: what luminance is, those repetitive tasks that are high-volume in nature. that quite frankly paralegals don't have time to get through. think about ndaa's and how they are viewed on a daily basis. so it's really there to augment their work. what ai can't do his thing for them at the moment. so it's there to really accelerate and help them be more efficient, but there is still lots that they can keep busy with. lizzy: surely your tech will replace lower-level jobs because why would a company pay for humans and ai if they could pick ai to save money? eleanor: if you think about it today, when i speak to lawyers, they are all faced with similar problems. overflowing in boxes, regulations changing at rapid rates. too much repetitive tasks that

they don't have the time to get through. plus the fact that they have a lot of information standing in their contracts that they don't have time to really mine and look at. quite frankly at the moment it's all about driving efficiencies. it's all about augmenting their work on a daily basis. and everyone is really happy with that. lizzy: how does the legal industry look in five years, 10 years from now? eleanor: in five years time i think what you will see is ai being at the center of very high volume task but low volume task. i think you might see ai on either side of that. that would allow for the lawyers to have time to think about things more creatively, to be valued and to add value to the business on top of what they are doing today. lizzy: you are the only company in this phase. in europe, it's pretty fragmented compared to the u.s. you've got your prominent hear

the u.k., you have the nordics. what's your strategy to dominate ? what do you offer that your competitors don't? >> the first thing is that we built a proprietary large language model that has been trained and exposed to hundreds of millions of new contracts. that's really important in this phase because trust and accuracy are key. so a lot of other people are using general models, which is great. it's great for rewriting and email for you. but trying to give you an answer at cost. when you work with lawyers you want to make sure the ai knows when to hand it back to the human. he wanted to tell you i'm not sure about this answer. that's how we've trained our ai. second to that, there's a lot of point solutions, so there's interesting technologies out there that are solving a piece of the problem, whereas at luminance we do it end to end. our ai helps across the board for the creation of contrasts and then finding things within contracts.

lizzy: are you worry about things from the u.s.? eleanor: our product is grown by 220%. we have more organic demand at our customers include amd your coke industries. and it's a really exciting time for us. lizzy: what about regulation is it help or hindrance here in the u.k.? eleanor: what we want to see is when regulation comes, that it's agile and flexible enough in a fast moving environment that we need to make sure we think about that. lizzy: have you found the new administration easier to work within the sunak administration? eleanor: i haven't spent much time working with either administration. lizzy: that speaks for itself. what you want from labor? eleanor: i think it's important to have a share of voices around the table. at the moment, it's great. you've got big tech and you've got academics. some of the best ai companies

are coming out of two-man teams. making sure they are included in the conversation is important. lizzy: it's kind of important that this started in cambridge around a whiteboard when genai was an even talked about. wasn't cool. but as you say, it was founded by two men, and tech remains very male-dominated. i've been to lots of tech conferences this year surrounded by men. as a female tech boss, do you think more needs to be done about this, what should be done about this? >> are always think more can be done, but i think we see a change in the last five years. so, i think it's up to myself and other females and tech to really just celebrate what we are doing, explain what we are doing and thanks -- and encourage people to come and mentor them. lizzy: eleanor lightbody, ceo of luminance, great to have you with me around the table this morning looking at those developments in the legal tech

industry. really exciting company there. as we say, in the u.k., it's a really crucial moment for keir starmer. we've got this investment summit coming up on monday. he's just announcdis new investment minister which was telling his old boss. at this 100 days moment it sems the prime minister is already rehng for the reset button. e's told this tale of dooman gloom over the summer. emphasizing the 22 billion pound hole in the public finances, but kind of failing to acknowledge that the economic picture has brightened. you've got inflation back to the boe target. you've got growth as you can see picking up in the u we get the latest numbers at 7:00 a.m. as he suggests the past hundred day of government, there's this fear of tax hikes on october 30. it seems that the international

landscape has been easier for him to navigate. you've got the polls showing one that half of voters don't approve of his performance. plenty more to come up on bloomberg daybreak: europe. do stay with us. this is bloomberg. ♪

lizzy: it's been a busy week when it comes to the fed's rate path ahead and digesting the fed minutes, the cpi print yesterday. we look ahead to ppi today, but what seems to affect traders the most is when the u.s. jobless claims surged. we have this against the hotter than expected inflation print. actually a slowdown in the labor market. you can he jobless claims the biggest jump in three years and if we flip the board, over 12 k

of that rise was in the areas where hurricane helene hit, so florida and north carolina. and if you take a look at the latest fed pricing, flip the board again, traders have been pulling back on their fed rate cut. traders went from pricing in at 170 basis points of cuts next year to now 110 basis points of cuts, which really leaves all eyes on that pc number on october the 30th as we look ahead to the fed meeting. but this really is quite a turnaround if you think we had that jumbo cut from the fed, now the debate turns to whether we will have a smaller cut or no cut it all at the next meeting. two quarter-point cuts if we look here is actually seeming to be the new status quote. so all of these fabulous charts, just go to gtv and they will take you to all of these. stay with us on bloomberg tv, we

have plenty more on all your top stories of the day. coming up on the opening trade we will speak exclusively to the french minister delegate for european affairs -- european affairs. that's about the new budget at 8:30 am u.k. time. on monday we will be going live from the paris motor show where we will speak with the ceo of stellantis on the host of other leading figures from the european auto industry. the opening tradeis coming up next. anna and guy be taking you to the market opens. stay wis. this is bloomberg. ♪

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>> good morning from london. an hour away from the opening trade. here's what you need to know. spending cuts and tax