tom: these of the stories that set your agenda.

a surge in tesla shares drives the nasdaq. rachel reeves says she potentially may borrow more. barack obama and donald trump, we will have the latest. ♪ tom: third-quarter adjusted return, a month ago they had

challenges in the chinese market. all crook is -- oliver crook is here. >> coming in at 4.7 percent is weak, we got guidance looking

forward & spoke be lower this year than last year. the guidance for the year is between seven and 8.5, not strong. when you look at all of their other sort of metrics revenues down. net profit is down, eps is down, a group picture. tom: indeed. dropping in the third quarter, almost one third of the level in terms of profit, cost cuts is one solution, talk about

expectations, and it is not the only carmaker struggling. >> says been the story, what do you do? cut costs. foreseeing that invokes bargain -- volkswagen. talking about that number, return on sales of 4.7% in tesla delivering their margin, 17%. 17%. they blew it out of the water. we had a tesla rally, they added 153 billion d's. if you take the combined market cap of stellantis and bmw, this was more than all three of those.

tom: it is remarkable. it is just one carmaker and it gives sustenance to the view of cathie wood who bet on tesla. indeed. numbers coming through, a miss. he earnings story will be part of the calculation of investors, lackluster session, european futures lower by 4/10 of 1%. ftse 100 lower, snp futures off after some gains yesterday. nasdaq futures are flat after rallying yesterday boosted by a 22% pop.

flip the board, relief stateside continues. money moving into treasuries, 10-year below 4.2, yields down, euro-dollar at 108. naugle said the ecb should not rush to cut although he said 2% is in view. brent crude is up and gold off but still above 2700. let's cross over to singapore. avril is standing by for us. >> absolutely. asian benchmarks tracking wall street, japan is outlier and the

coalition could lose its majority, concerns about whether this slows normalization. not just about politics, governor ueda says they have time to consider their next steps. it was about december yen january and uncertainties.

the boj could think twice about rate hikes, easing for longer. helpful for japanese stocks, so we could see a dynamic that reverses, let's flip the board. i wanted to highlight implied volatility on dollar-yen because the two week is higher than the one week and one week encompasses u.s. elections. tom: yeah, u.s. election is a factor. looking ahead to the election. avril with a deep dive out of singapore, fank you. boosting government investment could allow them to borrow 70

billion pounds more over the next five years. let's bring in lizzy burden. this is still significant, gives us some headroom. why is the chancellor making this move? lizzie: she's changing to maintain the golden rule of only borrowing to invest and funding day-to-day spending with tax revenues, towing a line, not returning to austerity and not raising taxes on working people. therefore it is crucial that labor can convince the markets that borrowing will stimulate growth. she did a speech, there was a guardian story, yet, the market

wobbles. the yield falling, the spread widening because of the prospect of increased borrowing leading markets to pair bets despite major bailey saying disinflation is happening and that was a condition for aggressive cuts, so this is a fiscal story. tom: you will see how sensitive the market is. sensitivity around the key budget. lizzy burden, indeed. let's switch to geopolitics, negotiators between israel and hamas will meet to make a renewed effort to end the conflict. antony blinken is in london to

meet arab foreign ministers as the u.s. explores different options. what's go to executive editor stuart livingston wallace for the latest. the 11th visit to -- to the region, what are the chances of a cease fire? stuart: vanishingly low at this stage. strange things happen but let me set up the sonority of. not clear they have a text to negotiate around, who are you negotiating with and then number three, the appetite within israel for a cease fire does not seem very high. they have a specific set of circumstances and it does not look like the other sides would

be keen, so there is willingness to push forward but i think we are a long way off being near negotiable. tom: give us an update as to what is happening in lebanon and gaza and calculations about whether or not to -- to retaliate. >> in terms of retaliation it feels inevitable again. we are not inside the minds of the cabinet but they will have to do something. the question will be what will that look like and they have probably stepped away from nuclear facilities for oil facilities so were looking at

military targets. you get a tit for tat approach. what we sar in april, a muted response from israel under pressure, de-escalating things. that is what the international community is hoping for. mistakes are easy to make and that is the real concern. tom: stuart liviston wallace. vanishingly slim hopes, we continue to monitor. less than two weeks ago, harris is tapping into the power of

celebrities while trump is employing different tactics. this is bloomberg. ♪

tim: welcome back. naugle says the central bank should not do much to lower borrowing costs, all options are on the table in december. >> should be cautious, keep our track to really look what data is coming in. next meeting is coming.

new projections through 2027 and more orientation but i'm not in favor to speak too much what is necessary. i believe not helpful. tom: let's bring in valerie for reaction. ecb are still debating whether they go 50 basis points. where do things stand? valerie: naugle does not want to speculate but the market is speculating after this week data from the euro zone. over january they're pricing in 70 basis points of cuts, implying one meeting will be a jumbo cut. more skepticism at the meetings

in washington. we heard from peter yesterday. peter: my colleagues are discussing cutting 50 basis points. two more readings of inflation, european economy is weaker than we thought and we had a downside surprised the 50 basis points in december is premature. valerie: the market is pricing it in. if we look at the euro, it is down nearly 3%, dollar strength with regard to elections, i want to show you the risk, implied volatility rising, the one-month

volatility on the euro-dollar pair really picked up showing skepticism about a trump win and what that could mean for the euro. on the risk of a trump win they could see a 10% decline in euro-dollar. tom: valerie breaking down expectations indeed. markets still debating a jumbo cut. let's get to u.s. politics. vice president harris enlisted bruce springsteen and barack obama to turn out the vote in georgia. former president donald trump headed west to arizona and railed illegal immigration. kriti gupta joins us for the

latest. what have we been seeing? grady: -- krit: they're both going down to texas, it's very crucial. one key voting issue is immigration, abortion, gun control, economy is number one. immigration is high on the list in terms of the content, justin trudeau putting on strict measures, certainly a hot topic. this will be crucial because harris faced criticism over being the ag and doing little to address the border issues. trump being grilled around his

border wall partially constructed, not fully construct it. just to see how effective it is, we looked at the numbers, bidens administration, migrant numbers have dropped stan truly. it is a fair point and very much on the ballot. tom: gratian, vulnerability. when she stands on stage with celebrities, she will be alongside beyonce, does that -- what does history tell us about whether that moves the dial? >> basically the -- the -- the news people need to know is this was a hot topic when she played beyonce's freedom. she has gotten that less than two weeks before the election,

it brings back the endorsement from taylor swift, how can you reach out to minorities, women, and it feels like this might be one way. this has been a key part of her strategy. we will see if it works. tom: opening trade anchor on the u.s. election and campaigns. november the fifth. indeed. now to elon musk who is playing a role with support of donald trump in regular contact with vladimir putin since 2022 according to the wall street journal. officials said they discussed tensions and personal topics, raising sensitivities given elon musk's ties with intelligence agencies. coming up, the future is nuclear

according to big tech. what is driving investments by microsoft, amazon and google. stay with us, this is bloomberg. ♪ tom: let's check in on these markets. we are not going to a break. futures lower by 4/10 of 1%, ftse futures off by five points, dax futures according to the top line, a big miss that could weigh on the dax, down or tenths of 1%. the read across the broader sector on results coming through, we continue with a macro lens to focus on the

repricing around the bed and the ecb. to what extent will central banks diverge next year? markets currently pricing in 34 basis points in terms of the cuts expected from the ecb in december. the selloff has eased. let's get back to big tech companies and nuclear power. three mile island plant will reopen its doors and amazon and google invest in modular reactors. here to tell us is the head of sustainability research. what is driving the push into nuclear power? different strategies. some are new technology, how much is about ai making sure energy needs are there to support massive tater centers?

kyle: thank you, there are three primary drivers. power demand, ai driven demand, knology companies have seen demand grow over the past couple of years so between 2018 and 23, 4 of the largest companies saw demand grow on absolute terms. year on year demand group 27%. so it now is ai driving demand but it was cloud computing so demand is one side, the second factor is the drive electrons, companies have said targets and

any time they build a data center or asset they are insuring it is met with carbon free electricity but solar and wind are intermittent which brings us the third driver, they need reliable power. nuclear and other technologies that for carbon free power can go in and fill the void. tom: is a your expectation we will see more deals focused on nuclear power? more spending? chris: it depends on what we are talking about. microsoft revived three mile island and that got a lot of attention but there is no large-scale nuclear reactor

under construction and limited opportunities to revive retired projects so at scale you are not going to see big traction from big tech again and on average these reactors can take 10 years to build when you add in permits. the x factor is the small modular reactors, those are the announcements from google and amazon, smaller projects, plug and play facilities on-site and so there are some questions we need to answer. costs are uncertain, projects are expected around 2030 but if you bring that into commercial viability it opens the door for

a slew of sectors. tom: is it just about nuclear or other sources? kyle: it's going to be all the tools in the toolbox. nuclear is zero carbon renewable energy is prominent so big companies are the biggest driver of clean electricity, so amazon, meta, microsoft, google, apple. they've signed gigawatts of agreements. tom: really fascinating. head of sustainability at bloomberg nef. coming it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local.

oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

tom: good morning. i am tom mackenzie in london. these are the stories the site your agenda. treasury yields fall as investors reassess bets on rate cuts. a 22% surge in tesla shares drives again gain for the nasdaq. government bonds slide as rachel reeves says she will change the fiscal rules, potentially allowing her to borrow an extra 70 billion pounds over the next five years. mercedes says it will step up cost cuts after fierce competition in china saw its car making margins slump well below the target. we have more earnings crossing the terminal now. the redhead crossing, cointreau, the makers of cognac, cutting their full year sales guidance by remy cointreau.

revenues coming in below estimates, 360 million euros. when it comes to organic revenues, that was a contraction of 16%. the estimate was a contraction of 15% and no doubt the mix around the exposure to china but also the u.s. will be part of the picture. u.s. sales failing to recovery for remy cointreau. more crossing this time from the energy company. adjusted ebidta lower. also the redheads from the french company, coming now, sanofi up about 13% year-to-date. we are focused on lines around the consumer part of the business and details on the guidance from. sanofi. it is a miss in terms of

third-quarter business earnings-per-share for sanofi. it's a beat, in fact. 2.8 6 billion euros. it's a beat when it comes to third-quarter business eps for sanofi. the estimate had been for 2.5 billion euros. in terms of the key blockbuster drug, net sales coming in at 3.4 8 billion for that drug, on which sanofi's gains have been reliant year-to-date, coming in above estimates, just shy of 3.5 billion euros. operating income for the third quarter also a beat, 4.6 billion euros. so it's a beat for sanofi in the third quarter. let's check in on these markets. earnings will be factored in as well as expectations around where the central banks go, the election risk energy up at telex -- risk, and the geopolitics in

the middle east. nasdaq futures just eking out some modest gains, which came through yesterday, powered by that gain in tesla. the nasdaq 100 ended the session up. let's flip the board and look cross asset. a relief coming through for u.s. treasuries. you are seeing yields down close to four basis points on the tenure, comfortably -- on the 10 year, comfortably below that level, looking at four straight weeks of gains for the dollar. 74.60 on brent, gold still above the 2700 level. u.k. bonds fell yesterday as rachel reeves opened the door to more borrowing in next week's budget. the plans to change the fiscal rules to allow for more borrowing for investment sent jitters through the market. joining me now is economist josie anderson. talk us through what your expectations are on some

analysis coming through the reporting of rachel reeves asking for this change in rules to borrow 70 billion pounds over five years. is that your expectation? of the scope she has, how much will she use? josie: we are talking about tens of billions of pounds in extra money the government can spend with these new fiscal rules. the key here i think is that they spend it on investment, which is the plan, and when we look in the context of the u.k. economy of the moment, we have seen essentially productivity growth flatlining since the global financial crisis, and a key fix here that economists talk about a lot is investments in key infrastructure and skills that could increase that productivity, because we should have seen that rise. it's increased in other countries and we have had technological advancements in that time but it has not, so if the government can succeed in investing in the right things, then we should see productivity growth rise and indeed gdp

growth rise, and so i think the key here is that the government does invest and in the right things. it attracts private investment alongside government investment and we unlock productivity growth as a result because that is the big problem with the u.k. economy that we have seen for the last 20 years, that lack of productivity growth. and we will see if the chancellor gives the details on the exact numbers. this may be a tricky question but what to the model suggest this kind of spending can do for growth in the medium to long-term. how does it change your forecast for u.k. growth. when we think about our current forecast, we are forecasting 0.9% gdp growth and for that to accelerate over the coming five years but we are not forecasting growth to reach 2% within our forecast horizon and so if this investment manages to unlock

increased productivity growth than that leads to higher gdp growth. i think the question is what will that investment look like. the government has talked about a national wealth fund to invest in things like ports and factories and so that will be incorporated into our forecast next week and next month when we get more details but that will be a longer-term impact. >> will the debt market stomach this? when we are looking at the debt to gdp ratio, is nearly 100%, so there is nervousness about the fiscal situation. public finances are a sensitive area and we have seen gilt markets move. and the chancellor will be acutely aware of that. this is why we are also likely

to see tax rises so that she can demonstrate some reliability with those finances that she is now responsible for and so it's pretty difficult to predict exactly how markets will move. we have seen movements from the announcement already that will likely be priced in so hopefully there will not be a dramatic change as well but the chancellor has a tough path to walk in a narrow path to walk. she has promised not to raise things like personal taxes but she's also got to demonstrate that responsibility with the public finances. >> and those are factored into your call for the u.k. economy by the end of this year? >> at the moment it is tricky to factor in exactly because we have not had the full announcement of things like timing and exact figures but i think the key takeaway from our forecast is that with that debt to gdp ratio there's only so

much that our forecast can change because there's only so much the government can do. >> below 4% next year? >> we are forecasting a rate cut in november and then three over the next year, so 4% the end of the year, so that should unlock more spending in terms of it is slightly cheaper for businesses to invest. markets betting on sub 4% by may of next year so you are looking at a less dovish reaction next year. fantastic to have your insights. josie anderson on this economy. european vc funding has been slowing down. one fund has managed to raise a sizable chunk of capital. we will speak to the managing

director about their latest funding announcement next. this is bloomberg.

>> e.u. has teamed up with venture capital firms from the region to boost investment in tech innovation across the region. founders have backed calls for a pan-european entity to promote startups and innovation as you're's tech sector seeks to compete with the u.s. and china and a vc firm has raised $8 billion in new capital and the managing director joints me now for an exclusive conversation. it's a big raise, $8 billion. what does it signal about

appetite for investing in tech globally and also the pivot to europe. >> i think it signals that we have confidence in this next wave of technology. we are very much focused on applied ai with two sectors relevant to europe and i think we have confidence in us through littering great returns after having backed companies like striped in the previous cycle and we are now doing the same thing. >> i'm thinking of helsing which is a key part of your portfolio. talk to us. when i talk to venture capital firms and partners, they have talked about a challenging fundraising environment. have you faced the same challenges? is that environment starting to ease and are they starting to put more money into play. >> we have not seen that ourselves.

but i feel like it's a general industry trend. we have been successful at raising capital and we feel like it comes down to a long time trust and support and that shows that we are differentiated as a company so we don't think about ourselves as a pure play venture firm but a global investment firm that also has transformational capabilities and focuses on the early stage. that's a differentiated approach that lps are endorsing. >> when it comes to early-stage and late stage, to what extent -- how will you divide up this 8 billion? we know europe is challenged with the growth stage in terms of funding. are you looking to address that piece? >> 4.5 billion earmarked for core venture. that's early-stage and growth for us. there's an incentive to double down on seed founders. we are working with early-stage

talent and making sure we are behind them and we also are starting companies with them so we have a unique approach in the sense that we are creating companies alongside industry partners and we are doubling down on global resilience. housing is a great example. a defense company going after ai in the sector, which is a really interesting and important sector to double down and build and, and we are aiming to do -- build in, and we are aiming to do similar things in building a manufacturing, large sectors that are fun and great, you know, sectors to go after from a venture-capital perspective. tom: i don't want to sound hyperbolic but when you mention helsing i think some of the other defense firms, some of the threats to their executives, do you worry at all about retaliation from russia? have you put in any security measures as a result of this investment? jeannette: absolutely. i think companies have to be

more careful. there are certainly security measures that have been put in place, but i do think if you think about the opportunity and the strength of entrepreneurs, they are unwavering in their ambition and commitment to the sector. >> the other key segment in your portfolio, a potentially -- potential european champion. they have become an m&a target. would you half -- have them consider selling? do you think macron would be ok with that? jeannette: jeannette: they are market rumors i cannot confirm. they are doing well on a standalone basis. it's a unique category leader coming out of europe that has the potential to own open source infrastructure, which if you think about the evolution of applied ai and the sector as a

whole, it's a very much-needed component to make this technology succeed in the next cycle. i don't think companies don't want to be dependent on two companies endorsed and owned by hyper scalers, so i think they have a strong opportunity to own that sector and double down from a global category leadership perspective. tom: what is your investment in that -- what does your investment in that tell us about where you want to be situated in that ai stack? where you see the opportunity going forward in the ai stack and europe's role in that? jeannette: the real opportunity we are seeing is what we like to call applied ai. that comes down to the fact that we want to make sure we actually build applications and work with industry partners to shape what will be the use cases that come with ai, so if you think about the past, and we have really been very much focused on off shoring, a lot of the service industry, if you think about call centers, accounting, all the services have been offshore in the past, and i feel like ai

is what we like to call a workforce transformation, so the real opportunity we have now is to nearshore some of the productivity, bring it back to europe, and really scale them up with capital and make sure we can regain some of the productivity and bring it back to europe. when you think of the opportunity at that sits behind that, i feel like we have the opportunity to play catch up against the u.s. and china. we have the opportunity to build. it sounds like a bold ambition but we are bold and we are ambitious in the way we want to back and think about technology in this next decade of venture funding. tom: yeah, ok. three out of the 10 largest tech companies out of europe. it sounds like you may have been having conversations with mario draghi because it seems to align with his report. a european entity to support startups, is that something you and general catalyst with support? does that silica sensible idea? would it be effective?

jeannette: absolutely. we launched something called the general catalyst institute, an innovation framework for policymakers to work with them on an innovation friendly policy framework around the next decade of ai. i think there's a big opportunity for us if you think about the draghi report that addresses these challenges we have from a technological sovereignty perspective to double down and really sort of, you know, embrace the problems more whole way than others are doing. so we are bringing together the established industry, policymakers and the talent base we have. we are confident we can catch up in the next decade. tom: appreciate your time, jeannette zu furstenberg, managing director of general catalyst, on that $8 billion raise for that venture-capital firm. staying on technology with a lens on what's happening in the city of cambridge.

the city has been billed by some as the next silicon valley due to its fast-growing tech and life sciences industry. tiffany joints me for more. you have done a deep dive on this and thank you for joining me in the studio. there are challenges. what are those challenges, what did you find? tiffany: absolutely. that's why a lot of residents in cambridge have kind of been, like, hold your horses. maybe we shouldn't see san francisco as a goal to emulate. the two places are very different but what is not so different is that inequality is rife and both of them and cambridge is getting worse. you have a situation where there's a massively growing population but now the infrastructure and average salary to meet that population, so they have seen prices grow by 78 percent for housing and pay only grow by 3%. it is the second most

unaffordable place to live in the u.k., just behind london, and it has some of the worst inequality in the u.k., so despite having its world-renowned university, educational attainment inequality is some of the worst. the gap between high and low earners is one of the highest in the u.k.. you have a situation where high income and low income neighborhoods are right next to each other and someone living down one street cannot be expected to live on the next. it is facing these core problems now, things like water scarcity, a housing shortage, traffic congestion due to a lack of transport lanes. it's lower rapid growth -- rapid growth. tom: it feels like on some measures cambridge is a litmus test for this government. if they cannot get cambridge to work as a kind of silicon valley-like city all that potential, then the u.k. is just not going to be as positioned as many would hope. what is the government doing? tiffany: there is reason to be

optimistic. the labour government's pledge to get building and revive growth suggests this will be a priority of theirs. it's been a little bit slow going because of the recent change in government, but what i have to say is it's not just about making sure that growth is inclusive. it's also that the exact ambitions they have for the city just won't be fulfilled if we don't have the corresponding infrastructure, so if we don't have the office space, the lab space, the transport lanes for people to commute, the homes from which they commute, then it's not going to be a hub of any kind. i think the ministers wrote a letter to local leaders but it will be a long road ahead and i think it will take a lot of money and time and it's not clear when we will find that. tom: thank you, tiffany tsoi. you can find that on bloomberg.com and on the

terminal, the challenges for cambridge. plenty more coming up. the is bloomberg. ♪

>> the u.s. economy is one of the strongest among the major economies. and when you compare the u.s. to the other g20 economies, it's the only economy whose gdp is higher now than we projected before the pandemic, so it's a very strong economy, a lot of confidence in it. tom: the imf first deputy managing director there on the strength of the u.s. economy, which you cannot talk about without talking about its tech titans, and what a day for tesla yesterday on the back of those blowout quarterly earnings. the biggest profit increase they have seen in over a year in that quarter and the reaction to the

markets, the market reaction to that incredible in terms of the superlatives. the market cap of tesla increase by $153 billion, the biggest jump, 22% increase in the session yesterday for tesla, the biggest increase we have seen and more than 11 years in more than 11 years, elon musk's wealth increasing by $34 billion. he projected out sales and deliveries growth around 30% next year and that was part of the positive for investors and tesla. we will see however forms later. a look at where investors are putting their money into the extent the dry powder of cash in money markets could be put into use in the equity markets in the u.s. despite the fact that we are near record highs in terms of u.s. stocks, you have $6.5 trillion now, a record amount, sitting in money market funds in the u.s., investors still trying to get exposure to that high

yield even as the fed cuts rates. money markets are slower to pass on those cuts and you are still getting a much more higher yield than you would in a bank deposit. justice your -- just this year alone, $500 billion in these money market funds. that could be another catalyst and leg higher for equity markets if and when investors start to move out of them and put that play in the stock market. 3:45 p.m. london time later today, we will be speaking with the ceo of deutsche bank. that will be fascinating. on the back of their earnings. monday, speaking with the openai cfo, sarah frier. don't miss that conversation at 3:45 p.m. u.k. time. the opening trade is next. the is bloomberg. ♪

it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> i am