tom: this is bloomberg daybreak year. i'm tom mackenzie in london. investors get set for a week of

earnings and u.s. economic data. bitcoin topped 71 thousand as traders ramp up bets on a donald trump come back. hsbc's $3 billion buyback, europe's biggest bank throws down the gauntlet with a pete on pretext revenues. santander beats on net income. goldman sachs ceo on concerns about conflict in the middle east. we will bring you our exclusive conversation with david solomon at the future investment initiative in saudi arabia. breaking some earnings for you now pure and massive week for the earnings story. and of artist third quarter earnings-per-share coming in with the beat. it's a beat for the swiss drug

maker. two dollars six cents in terms of earnings per share in the third quarter. that was above estimates of 194. in terms of the third quarter net sales, they came in slightly above the estimates. also beat in terms of third-quarter net sales for the 12.82 u.s. billion dollars. the estimates for for a 12.6 8 billion. they raise their outlook. analysts expect maybe this was an option for them, that is the key line novartis raising its for your outlook. we know there will be details expected in terms of a push in terms of their cancer drugs in the u.s. we will speak with the ceo of novartis in two hours time on the opening trade. that stock up around 21 percent, 22% year to date. lufthansa, the airline down 10% year to date. the focus on the restructuring plan on fair prices and on demand for this german airline. third-quarter adjusted earnings coming in above the estimates.

it's a beat. lufthansa 1.3 4 billion euros. the estimates have been for below 1.3 billion. they also confirmed their guidance, says it's the strong demand through the year end. that is a stock to watch at the open. stock down year to date around 10%. in terms of the markets, let's flip over and look broadly at what's happening because these markets are desperate for a catalyst. will the earnings story be it? up next is the focus on cloud, monetization around ai. the stock has rallied year to date. to what extent will that be a catalyst or will markets hold out for details in terms of the data story out of the u.s., may be clarity in terms of u.s. politics. european futures pointing to gains of point 10 percent. best i futures looking to add 13 points. ftse 100 trading 18,003 hundred.

let's flip the board and lacrosse asset. modest gains across the s&p and nasdaq yesterday. cross asset continued focus on the treasury market. expecting more details out of the treasury department in terms of the options on wednesday. the u.s. ten-year trading at 427. yields down one basis point euro-dollar at 108. the vp of the ecb says the disinflationary progress is definitely there, but there are risks as well. euro-dollar at 108. brent after the biggest drop in more than two years, stabilizing right now. $71 44 per baylor. above 71,000 on bitcoin and that's part of the trump trade up 2% so far in the session. cryptocurrency with the largest market cap in the world peerless cross over to singapore. avril hong standing by with a check on the markets. avril: asia looking pretty mixed. what's interesting is how for a second day, in spite of the

political uncertainty in japan, stocks in the country have closed higher for another session. today it is being boosted by the banks, the insurers, they tend to do well in a higher u.s. yield environment. if you take a look at what we are seeing in the rest of the region, it is looking pretty negative. you have big u.s. as well as asia earnings, u.s. data ahead of the fed next weekend and the u.s. election. china, south korea, taiwan among the markets are trading -- treading water today. helping the hang seng to keep its head in the positive rate -- positive territory as the likes of hsbc. big boost to the benchmark after it announced its profit beat as well as that share buyback plan. and it's urging three plus percent now. let's take a closer look at what we see in the japanese currency because that is where we see the recouping of the steep losses from one day ago, moving even further away from the 143.8 level.

some do to safe haven demand. there is an element of that ahead of the u.s. election. data showing jobs arising, suggesting a tightening labor market. that makes the case for japanese firms to hike wages. something that the boj has a requirement for it to tighten monetary policy. but keep this in mind, another element is how arguably the july rate hike was prompted by the yen weakness. given where we see the yen now, there is a sense that may be traders aren't just writing off some hawkish guidance from governor ueda later this week. flip the board again, i want to talk through what we see in japanese stocks because we are in the early stages of the earnings season. so far we have been seeing mostly downside surprises from japanese firms. but the bunch of stocks that have been faring better in that regard, aggravate surprised by 32% are the consumer discretionary stocks. if you take a look at this

chart, it shows you in terms of the stock performance, they have been underperforming, the topics, with each suggests there is room for catch up. when that happens, it could be positive for the broader japanese markets as well. tom cole and avril hong in singapore. touching on the story around hsbc. shares higher in the hong kong session so far. currently up a little over 3% after the lender announced a fresh multibillion-dollar stock buyback as a reported better earnings. it comes days after the company unveiled a major restructuring of its business under its new ceo. the senior bank analysts from our bloomberg intelligence team joins us now for the analysis. what stood out to you from these hsbc earnings? >> all year long, positive results. there was new buyback shares. what is most interesting and

what is being look for is the momentum in the net rate interest income. the declining interest rate is positive news with mass momentum. tom: what did we hear and what details did we get about the ceos do restructuring plan, significant, one of the big shakeup that hsbc may be in over a decade by some estimates. did we get more details on the path forward for this bank? >> yes, this is what we are looking forward to and it's not yet disclosed. we don't know anything of the cost structure and what other details. it is going to be disclosed. it is definitely something that is a missing component. by the market, we need more details. it's a little bit short details

of what will happen. what will the new structure look like, and that's something we will be discussing today as well. tom: there's interesting comments about the wealth part of the business. how important do you expect that unit to be in the future of hsbc? to what extent could it be a further profit driver for this bank? >> what i think is most important and most positive is the momentum. this is going to be a key profit driver and will be very important for the revenue. especially that we see interest rates going down. i believe it could be pushing more for growth and better asset management.

in major growth from 2025. tom: thank you very much, senior bank analyst from our bloomberg intelligence team. made me wait for more details in terms of the restructuring plan and the fourth quarter. a beat with the shares up in hong kong currently three point 4%. staying on the banking story and it's another beat, this time from santander, top lines coming through in terms of the news beating the profit estimates, the lending income has held up. the bank posting net income of 3.2 5 billion euros. that was above the estimates gaining 8%. fee growth coming in at 5%. that's growth of 5% in terms of the fee growth. the stock is currently up around 25% year to date. net interest income coming in slightly below the estimate.

estimates have been just shy of 11.6 billion euros. in terms of net income was a beat for santon dear. the estimates had been for just below 3.2 billion euros. a beat from that big spanish lender and the third quarter. when you speak with the cfo and hours time from the opening trade, stay tuned for the interview. goldman sachs ceo david solomon remains bullish on the u.s. economy predicting a soft landing in expecting dealmaking activity to continue. spoke to us exclusively on the sideline of the saudi future initiative in riyadh. >> i think there's an awful lot of attention on short-term rates. i would be focused over time on longer-term rates and i continue to be concerned about the level of spending and deficits in the united states and i don't think that's a short-term crisis

factor. but unless we have policy change, we get are spending an hour debt under control, ultimately that has a bigger impact on long-term rates and people are anticipating today. tom: david solomon speaking to us exclusively in riyadh. plenty of u.s. economic data to look forward to as he talks about the u.s. economy starting with the jobs numbers. the job opening numbers today leading up to non-fun payrolls. drum rolls leading up to that data print on friday. let's bring in valerie tytel to tell us what markets are bracing for. more around the data and what to expect from the u.s. treasury. >> big week for u.s. data. when it comes the labor market, we are looking for hints that the recent tightening we saw is it just a blip or a start of a new trend. this is job openings for unemployed workers. bloomberg economics predicts we could see another rise again but

they don't think it will be sustained. they think the recent tightening is just a blip in will go back to seeing easing in the labor market. not only do we learn about labor market data, but it's also month and this week on thursday. flip over to my next chart. i want to talk about what goldman's warning about. they are warning we could see a funding squeeze, just like we saw the end of last month, and they point to the fact that because of the risk events on the horizon, the election and the fed meeting, the auction treasury schedule has been compressed. month end is on thursday. on that date, we will see the largest treasury auction settlement date that we've ever had. some 530 billion dollars of treasury settlements is expected to take place on that day on month end and goldman thinks we could see another funding squeeze on that date as banks and investors really scramble for cash on their balance sheet. another thing i want you to keep in mind is what we see recently in gold and bitcoin.

we saw a big jump in bitcoin overnight. it jumped near 2%. it's 2.5% as 2.25 percent. this is in tandem with gold rising. that leads us to conclude that this is may be about a deficit worry. we heard from the ceo of goldman sachs on his worry about the climbing u.s. deficit. the expectation of a trump when being christ into bitcoin is being shelled in the price of coin as we start to worry about the climbing u.s. fiscal deficit. tom: loving the live reaction to the price around bitcoin. breaking down what to look for this week leading up to jobs at a later today and the non-fun payrolls on friday. treasury and focus on the move around the trump on bitcoin. let's focus on what else is coming through for you today. 9:30 am u.k. time. u.k. mortgage approvals. touch on the health of the housing market as the bank of england gradually, slowly purchase rates lower. 2:00 p.m. u.k. time, u.s. jobs data. job openings are important. we know the fed has an eye on

that. on the earnings front, it's a big one when you kick off mag seven earnings with alphabet crossing later today. the team will be breaking those earnings. the stock of about 22% year to date. focus on the cloud division of course at alphabet. coming up, we will switch focus because the israeli prime minister says he is open to a short truce in gaza and -- in what would be the first cease-fire deal with hamas in nearly a year. we bring you the details. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. israeli prime minister benjamin netanyahu says he is open to a short truce in the country is more with hamas that would lead to the release of a small number of hostages still held by the

iran backed militant group in gaza. does this suggest that a truce in gaza, even if it is short, is getting closer? >> in some ways, there has been progress because the gaza truth talks have been stalled. take your picks two or three months or longer depending on how you define it. they've gone absolutely nowhere in that timeframe. the fact that negotiators are backing qatar talking about how to get a deal is certainly progress of sorts. egypt is proposing a 48 hour truce initially for the release of four hostages and the release of some palestinian prisoners from israeli jails. there are 101 hostages remaining in gaza, many of those, perhaps 30 or 40 are thought to be dead.

but, there are still many obstacles to overcome in israel has said it has not actually received a formal proposal for this today truce in return for four hostages being released. there's still a lot of things to overcome. one is the negotiating start of the position of hamas at the moment. given that the leader was killed in gaza was killed. in israel and other negotiators in qatar are unclear what hamas stances, whether it has changed since the death of their leader if anyone is in charge or if there is easy contact between political members in qatar and those still on the ground in gaza. there is still lots of questions. i don't think we are going to get anything imminent, not this

week. it doesn't seem like that, anyway. tom: maybe not imminent, but we will watch to see how and to what extent those questions are answered and to whether or not their progress to dash towards the deal and if there is a short truce. israel's parliament passing a bill to restrict the main u.n. organization that supports palestinians. how big an impact will this have, we know that domestically in israel there's been a lot of opposition to this you an arm, what has the response been so far? >> i think this is definitely a significant moment. what this bill does is effectively banned the u.n. relief in a work agency in israel. he could still work in the palestinian territories in gaza and the west bank, but that's very difficult for it to do if it can't use logistics facilities, warehouses and so on in israel. it's meant to take effect within 90 days, so there is room for

negotiations before them, so i think it really underscores the divide between israel and the west -- and the rest of the world when it comes to the humanitarian situation in gaza. israel and its population are really focused on what remains of hamas military threat and the hostages themselves. the rest of the world is, to a large extent, focused on the plight of civilians there. the u.s. only recently said to israel that it needs to do more to get a into gossett to help stricken civilians by next month, and if that doesn't happen, then washington may well introduce restrictions on the military a it gives israel. this bill in the israeli parliament flies in the face of that and almost shows how

defiant israel is. israel is adamant that anwar is effectively a security threat. it said many of its members are returned with hamas and has said that some of them were involved in the october 7, 2003 attack. something anwar has admitted took place in some cases. but i think it's certainly something that is just going to lead to a lot of criticism on israel. potentially some kind of reaction -- material reaction from its allies in europe. tom: paul wallace with the details on the latest out of the middle east. turning to the invasion of ukraine, russian troops have reportedly captured the last town for a key logistics up for ukrainian forces before that city could jeopardize the defensive line and pave the way for russia to occupy the entirety of the donetsk region.

coming up, volkswagen avails radical plans to cut costs. we will bring you the details and the challenges facing germany's biggest automaker. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. after a profit warning and years of concerns, volkswagen's management is presenting radical cuts at its namesake brand to remain competitive. at least that's the hope from executives. let's bring in bloomberg's oliver crook as he follows all of this through us for -- all of this for us. take us through what we learned yesterday. oliver: this is the shot that dropped across employees. they got this news for the very

first time. remember, this is for the vw brand. this is the brand competing with the chinese auto makers increasingly making their presence felt on the european continent. the question of profitability and margins comes to the floor. what management wants to do is close three factories within germany to cut 10% across-the-board wages for employers -- employees. we are talking about 140 thousand within germany half of the workforce. germany potentially with factory closures would come job cuts. this is now hanging over the entire industry, and we should say that it bears mentioning again. volkswagen and its 90 year history has never before closed a factory. it's talking about closing three in germany, one potentially in belgium and this is the moment where we talk about what is the effect of two years of pmi manufacturing contraction. goes from charts into the reality and this is what's facing a number of workers potentially hundreds of thousands with just the pay cuts across germany and the real

economic impact there. tom: presumably the unions wouldn't take this lying down. what is the reaction, what is the risk -- expected reaction of unions to this news? oliver: this is what we will track. this is the opening gambit for management and what we will get will be the responses for the unions. their negotiations resumed tomorrow. this is when all these discussions will come out to the fore. the real concern is that this will result in basically strikes because they are very far apart on a number of issues here. so the question is, where can they collectively get. what is more interesting is not just a volkswagen story but as a test case. the question is, how powerful is the union in germany in the year 2024? i was just looking it up in the break that still in germany, 24% of all employment is in manufacturing. you have to wonder how many of those jobs are being preserved

by union agreements, and if something falls at volkswagen, could there be larger ramifications across the german industry? tom: potentially a ripple effect. 24% of people employed in the manufacturing industry in germany. bloomberg's oliver crook with a finger on the pulse of what's happening at vw and the broader ramifications that prevail of the automaker and how the unions could respond. the prospects potentially of strikes, which could make the situation in terms of the top line for vw even more challenging. coming up later, a budget that will define u.k. politics for the rest of the decade. i'm going to preview the labour party's statement on wednesday, expected to include tax hikes and extra borrowing. stay with us 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.

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tom: this is bloomberg daybreak: europe. i'm tom mackenzie in london. these are the stories that set your agenda. investors get set for a bump of week of earnings and u.s. economic data. bitcoin topping 70 $1000 as traders ramp up bets on a donald trump come back. hsbc's $3 billion buyback. europe's biggest bank throws down the gauntlet with a beat on pretax profits and revenues. santa and dare beats on net income. plus, goldman sachs ceo on his concerns about conflict in the middle east in the u.s. deficit. we will bring you our exclusive conversation with david solomon at the future investment initiative in saudi arabia. lines breaking right now from the footwear maker based in germany, a daily -- adidas stock is up 16%, 17%. in terms of topline. third-quarter gross profits

meets estimates, revenue coming in at 6.4 billion euros. operating profit just shy of 600 million euros in the third quarter. and a gross margin in the third quarter of 51.3%. adidas confirming its guidance as reported on october the 15th. of course a touch point on the consumer. the inventory story as well in the margin story. again, gross margin, 53 -- 51.3%. operating profit around 600 million euros, meeting the estimates in terms of third-quarter for adidas. the stock up around 17% year to date. let's check in more broadly on these markets. they are earning story, maybe some of these will prove something of a catalyst for a market that has been lackluster, very modest gains across the u.s. session. you had bits from hsbc from

santander and those could prove some upside. european futures pointing to the game with a slightly brighter picture. i will put my picture on the positive earning story. ftse 100 looking to gain. s&p futures currently flat. and futures looking to add with a focus on alphabet earnings and particularly on the cloud division. those dropping later today. 4.26. your 10 years elite -- is yielding. the long end on the 10-year. euro-dollar at 108. ecb suggesting the moves are there but there are risks potentially on the horizon rent after a drop of around 6% yesterday, biggest drop in more than two years. 7130. stability. bitcoin, above 70 -- 71 thousand dollars part of the trump trade basket of 2% in the session. let's get to the ceo of goldman sachs.

david solomon expressed concern about the widening middle east conflict citing its potential impact on security, safety and economic growth. he spoke to us exclusively on the sidelines of the saudi future investment initiative in riyadh. >> is not good for security, safety or economic growth and i'm hopeful that leaders in the region and around the world that important governments around the world will be able to find a path to settle down as we move forward. but anytime you have geopolitical uncertainty it's not good for economic growth and prosperity. i spent time with people on the ground, people want to find a path to a secure prosperous, economically vibrant middle east. it's interesting, people are obviously concerned and very focused, but it has not had a significant impact on activity up to this point in this part of the region.

>> let's talk more broadly, your earnings came out very strong. the stock is at a very good run this year. you must be feeling good. let me ask how you are feeling about the outlook in general. >> i feel good about the outlook. i think if you took a tour around the world, the u.s. economy is doing quite well. it has been very resilient. i'm a little bit more concerned about european growth and also the economic situation in china. overall the engine in the u.s. has been powerful. our business is correlated to u.s. growth. i can give you a list of things to worry about but i can tell you also a list of things that i'm optimistic about. the progress around technology in a the opportunities to increase productivity is real. it's extraordinary and the impact that they will have. there are a lot of reasons to be optimistic about the growth trajectory of economies around the world. but, there is also fragility and

things could go wrong. >> it's been difficult to track the narrative around the u.s. economy. we've gone from a hard landing to soft landing in talk about no landing. i will talk about the u.s. economy but where are some areas of concern you are seeing right now? >> the base case in the u.s. is for a soft landing. that doesn't mean that there can't be some sort of a slowdown in economic growth. but the u.s. economy is proving to be incredibly resilient. we do have an election in the u.s. and there will be policy decisions that come out in that election. certainly those will have an impact of the trajectory in 2025 and 2026. with respect to european growth, european growth is more sluggish at the moment and i'm concerned about the same things many people are talking to at this event. geopolitics, u.s.-china relationship, the situation with ukraine, the situation in the

middle east. also concerned broadly about inflation in the world. concerned about energy policy, which is a significant issue. concerned about immigration and migration, which is different parts of the world. these issues require leadership and policy direction. i'm hopeful as we get past the election in the u.s. and move forward, we will see a clear direction travel on significant policy issues. tom: that was goldman sachs chairman and ceo speaking exclusively to joumanna bercetche who joins us. bloomberg's middle east and africa anchor joining us in the ground in riyadh speaking to executives and david solomon. what else stood out to you from this conversation with the head of goldman sachs, fermi it's on the differentiation between u.s. growth in europe. we had a not to geopolitics, what was the key take away from this interview? joumanna: we actually ended up

having a 15-20 minute conversation and it was really interesting to get his perspective on a broad array of topics. beyond what we listened to now, it's interesting to know his major concerns from the perspective was the european economy. he said the u.s. economy seems to be fine. he listed a bunch of issues that he is concerned about, with the fragmentations, tariffs, immigration, the u.s. election is a short-term risk that he cited. but when it comes to growth -- growth prospects he's worried about the european growth, which tells you something about the potential for future dealmaking. but over here in the region, we also had exclusive news that came out earlier today goldman sachs announced that they will be one of the first wall street banks to open up an office in the new financial district within riyadh. they were also one of the first wall street banks to apply for the so-called our hq license within saudi arabia.

coleman has had a presence in the region but we started off the interview talking about their commitment to the region and what david solomon was saying was there's a lot of dealmaking going on, a lot of activity, and one of the other -- pif, almost a $1 trillion sovereign wealth fund has committed and mobilized a lot of capital to asset managers. but recently in the last 6-12 months, they have been asking to see where asset managers are investing funds domestically. they are asking some of those partners to be more involved in the saudi arabia market and i put that question to david solomon who said it's a matter of a maturing economy and it was a matter of time before the pif also wanted to see some of it go back into the saudi arabian economy. a really broad discussion, and the take away i got is the bank is doing really well. he feels good about the outlet, some concerns about the economy

and reaffirming of commitment to saudi arabia. tom: what is the mood light in riyadh? what are the key topics of conversations that are percolating through the holes of that huge room you're in? joumanna: i wish i could show you, but there are accused extending hundreds and hundreds of meters for people waiting to get in, which is just starting now. the main speech has just begun. the pif governor is just delivering a speech now and a few major panels coming up with some of the biggest names in the industry going to be on stage with the likes of jane frazier, larry fink. we talked about some of the other bank ceos, david solomon will be there. berkeley ceo, alongside some of the other big vc names. to that point, this year the major theme actually is going to be one around tech and ai.

at 5:00 p.m. this afternoon there will be a special conversation. there's a lot of mysteries surrounding who he will be speaking with. we don't actually know, but it seems like it could be somebody big from the tech industry. we will stay tuned for that but it ties into an announcement that was made earlier that they are looking to set up a $40 billion fund to invest in artificial intelligence, so we are looking for more details on that and possibly whoever the supplies mystery guest will be. it is also some chatter that mohammed bin salman will be attending the conference. it explains some of the noise you are hearing behind me tom: great work on the ground for us in riyadh. hopefully could skip the qs with a special pass. thank you very much for the latest. now we have plenty more from the future investment initiative

annual conference with saudi arabia's investment minister, so stay tuned for that conversation. the biden administration has finalized restrictions on u.s. investments into advanced technologies in china. the rules banned some investors into semiconductors, quantum computing and ai. the u.s. government must be notified about deals and other industries. the policy aim to prevent u.s. capitol from helping china to develop critical technologies that could give beijing a military edge. in blowback has learned that apple exported nearly $6 billion of iphones made in india, in an increase of about one third from a year earlier. the tech giant is expanding its network in india as part of an effort to lessen its reliance on china. keir starmer's a big budget, we preview tomorrow's business statements from the u.k. government. that is next. this is bloomberg. ♪

tom: u.k. prime minister keir starmer says the government will embrace the harsh lights of fiscal reality is chancellor rachel reeves prepares to unveil a package of tax hikes and extra borrowing in tomorrow's long-awaited budget. joining me as managing partner at connection capital. good morning, thank you for joining us. welcome the private equity space. you connected my net worth individuals and family businesses in terms of family wealth units with the world of private equity. enterprises need that funding. what are the people you have a touch point on saying about their concerns or maybe their expectations about this budget? >> if you look at the importance

of smes to the u.k. economy, they represent over 90% of corporate in the u.k.. they employ over 60% of employment, and also they provide and generate 25% of u.k. gdp. very important part of the economy. those under manage businesses often have a dilemma and they can reinvest the profits that they make in their business or take on dead or raise equity to grow capital value in those business, increase tax receipts and increase employment. but the value fell within those businesses is taxed at a certain rate. if what the chancellor is going to do is to increase cgt, then those other managed businesses have a choice and many are saying, why take risks, why not just sit and just carry on

trading as we are at the moment, not grow, not take on new employees, but actually just pay ourselves dividends out of the company rather than grow. tom: to be clear, for our non- u.k. audience, cgt capital gains tax and expectation that that will be reformed. do you can see the capital gains tax structure in the u.k. does need to be reformed? >> no, i don't for the specific area i'm talking about. it's very important to keep that economic stimulus and that motivation for entrepreneurs and wealth creators going. there may be an argument for the asset and sitting on it and grows in value in the market for really creating anything, but there are lots of things that can be done with the cgt rate and regime to help address that. but i hope the chancellor doesn't do this just a

wide-ranging reform or it's just throwing the baby out with the bathwater. tom: what is the level of concern? you outlined what could come about if there is an increase in the capital gains tax for some of your clients. what is the level of concern right now when you're are speaking to them? >> its uncertainty. uncertainty in the run-up to the budget. there's been a huge run up far too long and created uncertainty within the business community, and no one knows what to do and are holding off making longer-term decisions. but certainly, if there is an equalization with an income tax rates, investments will fall off in the sme part of the marketplace. we also represent investors investing in private companies. again, their concern is, if i'm going to take the risk and something that is in a liquid investment, then i the

return, which will be different than just taking income. tom: how big a hold is the private equity industry when it comes to need for funding sme's in the u.k. right now? >> we got one of the most sophisticatein within the u.k., in terms of our private equity industry. private equity b u.k., so it's a huge part and it's an industry that should be encouraged and nurtured. tom: how are your clients probably thinking about u.k. assets? this evaluation opportunities someone draw a line under when it comes the u.k. assets. we've seen buyouts picking up on that front. what is the appetite for u.k. assets more broadly? >> in the right circumstances

there is a great appetite for u.k. assets. certainly at the moment, we will see after tomorrow, but a business friendly environment. the government's regime is good. lots of innovation. we have great tech. there's a lot to like about the u.k. industry. i hope we don't send out signals tomorrow that we are not open for business. tom: when it comes to the interest rate environment, higher rates, the bank of england is moving the rates lower. how much distress do you see across your portfolio? are you starting to see some of your business is that you invest in struggling on the funding front and the pressure of these higher rates starting to take a toll? >> we operate at the lower end of the market, so actually, we don't put a lot of gear and tower businesses. i would say in the medium and larger market, private equity

has some stress. lots of lenders, whether traditional banks are private credit funds have worked in partnership with their businesses and private equity backers within those businesses to help them through a bumpy time. so everyone is going to be relieved when rates start to come down. it does mean that the dealmaking and m&a starts to come back. i think everyone will begin to see that happen including business owners that have some debt. tom: thank you very much, managing partner at connection capital on a view around capital gains tax and the likely changes when it comes through. with the budget that we are going to be reporting in detail for you tomorrow, our special coverage of the u.k. budget tomorrow from 12:30 p.m. london time. a huge moment for the u.k. in any investor with exposure to

this country. checking hsbc, new lines crossing from the relatively newly appointed ceo. he be in terms of their earnings. $3 billion buyback as well. george henry, the ceo talking about plans or at least some speculation, he is pushing back against that. the hsbc ceo saying there is no plan to split up hsbc. is that it will lead to net cost savings. on a media conference call on the back of the beat that came through from hsbc's earnings. back to that panel taking place in riyadh, big-name speaking at the summit and the saudi capital including larry fink, this panel

is taking place around the table in react at that future investment summit the saudi capital. i think we will listen in for a minute or so. let's dip into this conversation. >> big investors in new sectors that will not in existence in saudi arabia. so, we've been investing for the past eight or nine years, and now most of our projects are operational and commercial. people are seeing the difference between what's their perception of saudi arabia back in 2015 and before that and what it is right now. the saudi economy is one of the fastest growing economies in the world.

i think in 2022. >> -- ♪

>> if we get a suite, either the democrats and republicans, the bond market will conclude that nothing will stop either party from spending a lot, may be cutting taxes a lot for some folks, not for others, all in all, continuing to widen the deficit and the debt. interest rates continue to accumulate and we will probably hit $1 trillion. tom: wall street veteran and on expectations of that deficit in the u.s. continues to expand. here's a look at the interest payments right now for the u.s. government on that debt pile. approaching 900 billion u.s. dollars. you are not fall off from -- far off from a trillion dollars. just interest rate payments. to be clear, whoever's in the

white house come january 2025, whether harris or trump, the expectation is that expansion will continue in terms of the debt load with a view that trump's expansionary policy, the policies he has outlined and talked about, we'll push up the debt load even more. the both candidates you see a tick up in the debt load. just worth bearing in mind. let's look at a different story. alphabet reporting later today, will this be the catalyst for the market. you will see a growth in revenue and profits. a focus on the cloud unit, any commentary in terms of a i spend and monetization story. the stock is up 20% year to date. the opening trade is up next. this is bloomberg. ♪ ♪♪ ♪♪

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>> good morning from london, anna edwards alongside kriti gupta and lizzy burden. we are an hour from the opening trade. hsbc announces a three billion-dollar buybacks, while santander beats profit es