>> brent crude slopes, u.s.

president hopes restrained responsible and the cycle. the yen weekends after the prime minister's gamble fails. the final week of the presidential campaign kicks off with trump's manhattan rally, the latest. happy monday, massive week with the magnificent seven reporting and the growth picture and payrolls.

huge week with politics to consider. european futures ending negative, negative territory, a weaker week after a six-week run in terms of positivity, in terms of futures ftse futures point lower, the pressure could be a factor. nasdaq looking to pad 108 points. let's flip the board because it is expected to be volatile week given the dater, the expectations and u.s. election outcome. 10 year as for 27.

japanese yen under pressure. brent crude is down as we said and iron ore is up so many for the u.k. that will offset pressure. let's cross to the middle east where the focus is on israel versus iran, striking military targets, delivering on netanyahu's thou to retaliate and spark a war. strikes were more restrained than expected. what does that tell us about the crisis and the thinking from

netanyahu and his team. >> there are two reasons for restraint. what is the u.s. ahead of alexion the biden administration made clear to allies that they were not interesting they urged the israelis to choose targets. direct israeli calculations, israel has not finished the job. signal to the iranians that israel is willing to confront iran but not trip up a confrontation.

tom: what have we been hearing from toronto? >> quite muted, iranians are buying their time. there have been public statements to play down the significance but we have to examine that in comparison to what they said, to have neutralized defenses including russian supplied s3 hundreds with large range, very advanced systems. essentially retarded their

ability to manufacture missiles we have a limited iran and limited means fending off a future attack using warplanes to target nuclear or oil facilities. israel has not ruled out iranian retaliation however iranians are thinking whether it is time to husband their resources and await u.s. election to see vis-à-vis israel and the wider middle east. tom: fantastic, dan. thank you. avril hong is standing by with a focus on the japanese yen.

>> absolutely, nikkei paring losses, gain 2% and mostly hold that amid backdrop of the weakness, it will affect the path to normalization and i want to highlight the gauge looking flat. we are watching for stimulus. flip the board, the yen lost 1% against the greenback and the pound and the euro, these will receive more attention. flip the board, want to highlight data, they are turning

bearish. again, flip the board and it will show they are building up the short positioning which pales in comparison to earlier in the yeah, more room to run. tom: indeed. we stay on japan because the japanese prime minister promise to restore stability after the liberal democrat coalition failed for the first time in 50 years. let's bring in yuko from tokyo. it's what led to the loss and what happens next? yuko: broadly speaking people dissatisfied with inflation is

catching up and purchasing power but voters fought that they had not done enough. placing them at the top the calculus was that might boost the popularity of ruling party and lead to victory but voters think that is not enough. the verdict is it has not done enough in cleaning up. tom: what are the policy implications and do they survive? yuko: we yet to see how long he will last. he spoke maybe an hour ago,

seemed to suggest he wants to take responsibility for now but implications for policy would be a weekend government for the foreseeable future, it could take a while to pass few parliament. we could see stalling and more populous moves from ldp as a result. tom: indeed. boj meeting later this week, not expected to change rates, but the framework evolution will be fascinating. vice president harris kicked off

the last full week of campaigning, the last full week of campaigning, wooing minority voters and trump held a rally at madison square garden where elon musk claimed he could cut 2 trillion dollars from the budget. let's bring in kriti kriti gupta , your takeaways, pretty, pretty remarkable set of events from the trump event. kriti: madison square garden, a key venue and in the u.s., major concerts, he filled it with elon musk, tucker carlson, who has been doing interviews with president trump and vladimir putin who has a massive

following, this is a key point that he is bringing up people with big volume. elon musk -- i would argue this is similar to the harris strategy of taylor swift or beyoncé, trying to garner as much of a following as you can. tom: it is a tussle between a listers. demeaning and degrading and racist language is something people have been writing about this morning. what about paris, whether she is getting traction when polls suggest trump has a lead. kriti: they are swinging by the

day, the tiniest margin is how close this race is an we might get a delay. kamala harris is trying to tackle the issues criticism -- kamala harris has been less vocal even though she is vice president under joe biden. she is trying to court the vote and that will be a key part of her strategy. tom: indeed. one full week away from the u.s. election. on tuesday at will get jobs dater, a big week in terms of the dater story as we have payrolls on friday. on wednesday at the u.k. budget,

the balancing act of rachel reeves and the prime minister, where will tax hikes land? on thursday, apple and emison reporting this week. coming up oil plunges after israel strikes against iran. we discuss what it means for diplomacy across the region. phillips cuts its sales forecast citing tepid demand, we speak with the ceo about that at 6:40 a.m. u.k. time. this is bloomberg.

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hand over the air guitar. i've got another one. tom: let's check in on employee will down 4.3% as he can see.

israel retaliating against iran and prices are down because markets priced in risk that israel would target facilities, that is not what happened. risk off is coming through. iran downplaying the results of the strikes suggesting it may not respond. let's bring in jane from the european leadership network. does this de-risk the conflict that has evolved? jane: well, it's all well active. what happened has been well measured and certainly it does

not seem israel had grand ambitions. one key concern is this is the second time this has happened this year inside iran after two occasions when iran struck israel and we are seeing this gradual escalation even at each side is trying to avoid war, it is ticking up words. we will see key uncertainties and we have a u.s. administration that has been keen to assure israel's response was measured. tom: how do you expect iran to

respond? jane: iran is in a bind and quite activated internally has is israel. most likely they will not have a response soon, trying to say it was unsuccessful and leaders have been saying that they don't want to be dragged into regional or, netanyahu's agenda is to drag them into war so they are showing restraint by not responding. this is underpinned by the fact that the military is conventionally inferior to israel and iran has said it soldiers were killed, that is

the army, not the guard. so that means there are hawkish voices saying they should respond, but the options are limited. longer term it increases the risk that iran might make a decision to weaponize because it is losing deterrence so then israel will try to scare iran away from doing that. they have options to attack the nuclear program if there are any signs that that is moving toward a weapons program which has not been the case. tom: moving toward nucular

weapons. tell us what the implications would be of a trump presidency, given that he shows little sympathy to the suffering in gaza, but he was the architect of the abraham accords and a close relationship with saudi arabia. jane: trump is unpredictable because he has instincts in different directions. one is he does not want to get stuck in a war where he would have to have u.s. money and troops caught up overseas in the middle east. he wants to focus at home and has been hawkish and last time he was president he appointed

key hawks including john bolton, people who talk about regime change. jared kushner talked about opportunity for israel to forge a new middle east by military action against iran's allies and it could go either way. still opportunity for diplomacy and likely that iran will try to express interest in that, whether it is harris or trump. they might de-escalate, that might appeal to trump's sense of himself, he considers himself to be a dealmaker. tom: jane killed her mom, thank you very much indeed.

what that could mean for the u.s. and the strike on the wrong. coming up, volkswagen plating a universal pay cut. we bring you the details next. this is bloomberg.

tom: volkswagen has targeted cost savings 4 billion euros. the proposals include a pay cut for workers. let's bring in all the critical with the details. ollie: this is the brand, not, the cars. important bread -- brand that

has been struggling. they are talk about saving 4 billion euros, 10% pay cut. imagine what that would feel like. wage freeze into a year after and possibility of factory closures. volkswagen has never close the factory before and is now talking about several. tom: this is a remarkable moment. when i think about pay cuts i think about the unions. what are you watching for? oliver: we will get an update

and wage negotiations but i want to paint for you, across 11 factories all the workers are going to walk how to receive an update about negotiations. that could be something we see more of. strikes, warning strikes across the board. the other point, employees, 11 manufacturing site, every worker that will walk out will be concerned about their job and the economy so in germany this is the moment where we talk about the real impact, huge consequences and political consequences.

car companies do not expect things to turn around. tom: indeed. another moment in the auto industry of germany, what it could mean for the labor force. at 7:15 a.m. we will speak with the ceo of bosch with exposure to the auto market, worth tuning in for. troubling times for german aircraft. what 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.

>> good morning, i'm tom

mackenzie. brent crude slumping. u.s. president hopes this will end the cycle of escalation. japanese prime minister does alexion gamble -- alexion gamble. the final week of the presidential campaign kicks off with harris trying to woo minorities while donald trump holds a rally. count down to the u.s. election and earnings story, five of the big seven and important date or out of the u.s. payrolls.

european futures up, ftse down, s&p looking toward gains after six-week winning streak. u.s. stocks ended in negative territory. looking to add 6/10 of 1%, the selloff in'twas ruiz continues. you have the treasury issuing debt issuance and then the dater front. japanese yen under pressure. brent crude the pressure so we watch the miners in the energy stocks. let's get the details, israel

delivering on a valve to retaliate that fanned fears of sparking a war. toronto is downplaying the impact. let's bring in ross madison. what does this tell us about the role of the u.s.? it has been unsuccessful, maybe this was a success, how are you thinking about the wohl of the u.s.? >> there was a lot of conversation and we know the u.s. was pushing israel to avoid hitting those sites and focus on military targets.

this is a win for the u.s.. but was it really? we know very much mr. yahoo! does not want an all-out war, he wants to focus inside lebanon where israel has been degrading the abilities of hezbollah. they seem to have momentum against hezbollah and israeli military is stretched. do you want a big front with iran. 100 fighter jets hit these targets and take out air defense so what message are you sending?

perhaps the next round would be military sites. right now no escalation. they are leaving options open. tom: a question about nato for donald trump and jd vance, suggesting they would be open to remaining in -- in -- in nato. not necessarily full throated support from jd vance. >> jd vance weighing in is in line with donald trump, he indicated he would not pull the u.s. out of nato, he wants other

countries to pay more. germany needs to increase its spending. if all countries are not pulling their weight maybe we would not support them. it destroys the idea of collective defense and calling gluten a competitor versus an enemy, saying you need to perhaps deal with vladimir putin, bring him in to send -- and the war. thinking about the balkans where they've been trying to bulk up defenses, is that something do little trump?

tom: indeed. news director on what is evolving in the middle each east -- middle east under a trump presidency. some other stories, keir starmer says him government will embrace harsh reality as rachel reeves prepares to reveal extra burrowing in the budget statement. france's credit rating is negative, the third in the space of two weeks amid deterioration of finances and challenges containing the budget deficit reflecting increasing risk that france's government will not implement measures to prevent deterioration. boeing planning to raise more

than $15 billion of capital today, including shares of debt converted into equity to maintain investment grade rating and pay for recovery from a crippling strike that continues. subsidiaries within days, they saw the share price tank 63% after the government denied the company a guarantee on a loan, my next guest says this highlights the core issue for tech. week commercialization. dario is managing partner at vc world fund. thanks for joining us.

we've had a number of failures and challenges in tech, in europe. now in germany, but does it tell abroad have story? >> good morning. very good question. i think the situation is a disaster and it shows that we as europe fail to support innovative companies through the growth phase and this is something we really have to be louder about. you just mentioned, electric elevation craft startup being founded in 2015 here in munich

and so far they have only raised 1.5 billion without support from states, so for 18 months they've been in the due diligence process, three days before the official guarantee which would unlock more cap you tell, announced they would not get it. they announced their going to go to try to go into insolvency, which could sick now that the company will focus on core business. as a company that is very hard to survive in europe. tom: yeah. >> why support a one-off

company? no such thing as a growth market in europe or germany. tom: yeah. what -- what -- what -- what -- no -- i wonder what lessons europe can learn from the u.s. on this front? >> it is comparable to tesla raising 30 billion before they were cash flow positive. and there was 460 $5 million credit line guaranteed to tesla which was instrumental in survival so 50 million guarantee, tom: set to compare.

you raised 300 billion euros, how much -- how much of that will be put toward funding if -- if any at all and what opportunities do you see given the challenges? guest: we raised 300 million, we focus on multistage fund so we would like to invest more cap a towel in early growth and this is a part of our strategy. we believe corporatization of industries is the core engine of the future and aviation is a core in what we believe. we have invested in suppliers on

the battery side and we believe we did lose the run for the ev space but as europe we can become the leader in aviation. tom: managing partner at world fund on challenges facing tech and opportunities, appreciate your insights. phillips cuts sales forecast for the year citing tepid demand in china, we speak with the ceo roy jacobs next. this is bloomberg.

>> welcome back. phillips cuts sales growth forecast as tepid demand weighs

on its board book. that is down from a previous forecast. with us is roy jacobs. stock is up, you resolved some issues, investors rewarded view but now comes the challenge of china. roy: first quarterly we saw two trends. small margin delivery on the back of flat growth and growth was impacted by china and when we seem solid growth at 3-5% that causes us to adjust our outlook including china and we reiterated margins and cash

guidance. tom: ok, that remains even in china. i'm trying to understand china markets, they've sent chills across the sector. what is the biggest headwind? roy: if you look at china it is important to look at two different drivers causing impact. one is on the consumer side in china and we've seen low confidence translating into lower sellout and leading to november 11 in china, the sale is expected to be low. that is consumer side. on the health care side you see anticorruption campaign continuing to impact growth in

china and feasibility is low. that causes about what we see solid growth in the rest of the world. very confident with momentum growing and across 2024, we've seen different growth speeds and we need to rally around where it is happening. tom: just -- just -- just -- just go back to china. the weakness across the health care part of the story, does that persist into 2025? roy: the feasibility in q3, visibility is low. uncertainty will remain for we believe the next few quarters, so it is hard to exactly.

so we stay vigilant in china, focused on what we can do. we need to go to indonesia where they need health care solutions and we are dialing up support for that country. really making sure we can help them because they don't have enough doctors but i was in the u.s. discussing with chicago hospital systems how we can support them because they're looking for innovations with ai to serve more patients so really looking at health care in crisis how we can support and in china there is a new reality. important to stress that we believe china remains important.

there are many patients and consumers. while the china economy transforms, it will come back to growth and we are ready. tom: that is the longer term view. are you seeing that stimulus? anything in terms of stimulus that is leading to green shoots? roy: it shows in the numbers, we do not see the impact, visibility is low so we need to be proven on our china outlook and we are focusing on margins and the rest of the world so we have been driving up our plan today and results from cash.

further resolving some risk as a result of challenges, making progress. we are ahead of the parameters based on a very strong start and now we need to take the growth into account. we are ahead and focus on execution which we have made progress on. tom: is the latest on the doj investigation into phillips? are you leaving provisions aside? roy: no further update because they need to collaborate. we have seen them contribute,

growth coming back, strong profitability and margins doubled from last quarter. so respiratory care is becoming a key focus, how we can serve patients with exciting innovations. tom: you talk about working through some of these issues, partners raising their stake, a vote of confidence in you. do you expect them to increase fervor? roy: they have shown interest in the plan, the execution and long-term prospects we have been showcasing, limiting

intervention and monitoring, also margin trajectory improvement is something we have worked on but need to continue. confidence is growing, momentum is building and if you see what we did to address some of it, we have been localizing but also america out of america so that we are prepared, you need to respond every day. simplification was a big one. on the back of reductions we did take up so we keep driving

strong control. tom: we will see if the resilience is needed. thank you, indeed. plenty more coming up. stay with us, this is bloomberg. stay with us, this is bloomberg.

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tom: welcome back. one big focus for markets this week, five out of seven of the magnificent seven reporting this week read the context is a picture of slowing earnings growth. it is slowing and that trajectory will push into 2025 according to analysts. the earnings collectively at the mag seven expected to increase 19% versus four .3% for the s&p. that sounds magnificent but it will be the softest increase in

earnings in about six quarters for the mag seven. since their peak in july of this year, mag seven is trending the lowest across sectors. very lackluster gain since that peak in july. we will focus on the capex spend, the hyper scalers around ai, this could be consequential this week. coming up, we will get to keep across what is happening in riyadh. we will bring an exclusive interview with goldman sachs ceo david solomon from 5:00 a.m. tomorrow morning. we will you some pictures.

kriti: good morning from london, critic up to alongside tom mackenzie and lizzy burden. we are an hour