tom: this is bloomberg daybreak: europe i'm tom mackenzie in london. asian shares tick higher after the s&p's best postelection day in history.

the fed and be a we both look set to cut rates today with donald trump return clowning the outlook. kamala harris concedes the u.s. election, promising a smooth transition of power. she tells supporters to keep fighting for their ideals. >> while i concede this election, i do not concede the fight that fueled this campaign. tom: political turmoil in germany. chancellor olaf scholz calls a snap election after firing his finance minister, as his coalition collapses over government are plans -- borrowing plans. some political clarity in the

u.s. but lack of political clarity now in germany. the focus on how the politics of germany unfolds and what it means for spending. currently markets are recalibrating around president-elect donald trump. you so that massive surge in stocks yesterday with the s&p adding two point 5%, the nasdaq adding 2.7% and a huge jump for the russell 2000 small caps almost 6%. for the s&p, the best postelection day in history. european futures adding after a's off day yesterday. the ftse 100 adding 30 points, commodities are off, that will help the ftse 100 today. nasdaq futures looking to add 59 points, up 0.3%. let's look cross assets. you had a big move in terms of money out of u.s. treasuries. yields up 16 basis points on the 10-year. a little bit of calm across treasury markets.

the fed expect her to get later today and the question marks over how far and fast they can go in an environment where you have trump in the white house and expectations of a more fiscally stimulatory and armand -- environment. euro-dollar gaining 0.1% after the rally of them 1% for the dollar yesterday. the boe expected to cut 25 basis points but it is a question as to what the path forward is and how much more complicated that is. brent $75 a barrel, currently up 0.6%. vice president kamala harris publicly conceded defeat to donald trump, after the democrats' crushing loss, as republicans are on track for a clean sweep of the white house and congress with democrats' hope so flipping the u.s. house now fading. >> earlier today, i spoke with president-elect trump and

congratulated him on his victory. i also told him we will help him and his team with their transition. and we will engage in a trees fall -- peaceful transition of power. tom: the more, let's bring in vonnie quinn, who joined us from new york. what did the polls miss that allowed trump to pull off such a victory? >> brexit reminiscent, right? this is the third time donald trump has been underestimated by polls. we had been saying that they were neck-and-neck the two candidates in most states and polls. the most egregiously wrong one was the one out of iowa last weekend which showed kamala harris leading the state by three to four percentage points, when donald trump won it by 15 percentage points. there will be a lot of looking back and figuring out how the polls went so wrong.

we asked frank luntz a respected pollster why, he said it was simply a case of turnout. every trump supporter turned out to be a trump voter, that was not the case for kamala harris. not every person who talked about supporting harris did turn up at the polls. another reason is that trump made gains in almost every demographic and every geography including urban centers even in new york, chicago, houston. kamala harris, even where she performed well, didn't outperform any other previous democratic run. tom: we talked about a potential clean sweep for the republicans. they have done that of the senate, the presidency and now potentially the house although a number of seats are still being counted in california. what is the state of play for the house? >> they absolutely have not yet lost it. however as you say there are some tossup states where we have seen republicans make gains.

which maybe makes it more likely as we are speaking that republicans hold on to the house. but the california seats will be counted up to a week after the election and if there are recounts that could go further. we will not know the outcome of the house for several days possibly yet. that said, it will be crucial for democrats to retain control of the house in order for there to be some checks and balances otherwise it is a red sweep. it will be easy for donald trump and his maga supporters to get their agenda through. some people at pangea policies suggest there are some lone wolf senators that were not always vote with donald trump. if it is a red sweep, clearly the path to his agenda is much easier for him. tom: vonnie quinn in new york with the latest in terms of how we are looking at the house and how the pollsters got this one wrong, at least, many of them.

investors are positioning for a second, trump presidency with the s&p 500 having its best soar yields soaring 16 basis points yesterday. was bring in valerie tytel who has a finger on the pulse of the market reaction. talk about how markets and traders are reacting to the trump victory. >> tom, yesterday we were risk on to the max. we sought not just the s&p 500 have its best session postelection but it set a new record high pre-not just that, you had the dow, then nasdaq the mag seven index all closing at record highs yesterday. we are very positive about this u.s. exceptionalism trade. this progress the u.s. narrative helped with stocks yesterday. i want to talk about other stocks within the u.s. really jumped forward.

we had bank stocks surging more than 10%. that was regional banks as well as the big wall street investment banks. highs late last night. that dollar strength rocked the euro. it had its worst session in four years down nearly 2%, lastly, 30-year yields we're worried about the inflationary impulse from more spending from a trump regime. those yields jumped 17 basis points. the narrative in the afternoon did shift toward this progrowth narrative. there is no better way to show it then what happened with dollar-max yesterday. the peso's 3.5% weaker on worries over trump terrace in the market changed his mind and went back to flat because mexico is a leveraged growth play exposed to the u.s. economy. we decided we are not worried about tariffs, we are fine being exposed on mexico because it is

a leveraged play on the u.s. economy, we saw this in oil as well, it was down 2% but during the afternoon session in the u.s. it rallied back to unchanged because we're more positive about this u.s. growth outlook. tom: we had the fed decision later today. to what extent is the change in the political map of the u.s. change the course for the fed going forward? >> it makes it very complicated. powell will face a lot of tough questions today. not just on that change of policy but also what trump told us just a few weeks ago about wanting to be more involved in fed policy. take a listen. >> i think it is the greatest job in government. you show up to the office once a month and you say, let's see, flip a coin. everybody talks about you like you are a god. i think if you are a very good president with good sense you should be able to at least talk to them.

i don't say make the decision at all. >> not only does powell have to contend with questions over federal reserve, central bank independence, he will get a lot of questions on policy changes. you will probably push all this off saying he will not speculate on policy changes and the fed cannot react until they see it on paper but questions remain. for instance, are tariffs inflationary for they hit growth more? tax cuts, are they going to increase the deficit more and worries about her for supply growing, or boost growth? deportation of migrants, will that tighten the labor market or hit growth? energy policy. trump has said drill, baby, drill is a drop in energy prices going to be a deflationary impulse? a lot of questions powell we asked today i'm not sure if you will give specific answers but this is always on investors' minds what surprises he could

have in store for us this afternoon. tom: how the fed navigate this new political reality and how the markets play catch up. to the political reality of germany where the chancellor olaf scholz called a snap election after his fractious coalition collapsed over how to revive that country's ailing economy. scholz dismissed his finance minister saying he refused to suspend rules limiting new government borrowing. let's bring in europe executive editor chad thomas out of berlin. chad, take us through how we got to this point. >> this has been on a slow burn for several weeks and months. we all sort of thought, to be quite frank, this slow burn would continue on where there was this threat the government might collapse but they would continue on. the next election was scheduled

to be september of next year. but last night, it all blew up. scholz came out and in very pointed remarks talked about his finance minister christian lindner, who is from another party, and said his ego was so big he was not able to serve the government. he said he was firing him. then he called for a snap vote in germany. how does this move from here? in germany, he needs to have a confidence vote in parliament first. that is now scheduled for january and then a snap election in march of next year. already the opposition is saying that's way too long. they want this to happen more quickly. we will be watching closely today to see how that plays out and if this timeline it's pulled forward even further. tom: we had a debate in the newsroom this morning about what snap actually means.

next year does not feel that snappy, call but maybe in the german context, it is. what does it mean for germany this political uncertainty? >> many people would say this is absolutely the wrong time to be doing this. germany is in an economic malaise. they are kind of caught between china and the u.s. you have president-elect trump coming back into the white house. germany has been in at least his previous administration was a target. that was one of the reasons people thought they would come together. but what they are now saying is they will try to move quickly with the snap vote to bring some certainty to germany, so they can move forward. by the way, the likely winner in all of this is the leader of the christian democrats. that's the center-right party, the former party of long-term chancellor merkel, their polling way ahead of everyone else at

around 30% of the electorate. it's very likely that their leader friedrich martz will be the next chancellor after this snap vote. tom: europe executive editor chad thomas on a crucial set of weeks and months it seems for the politics of germany. the team will be very busy indeed. now to the u.k., the bank of england widely expected to cut interest rates by a quarter-point today, but last week's u.k. budget and donald trump's election have cast new uncertainty over future policy using in the u.k. joining for a review is our correspondent lizzy burden. what do we expect? >> we have inflation back below the bank of england's 2% target, so it is nailed on this quarter-point cut today, so the focus is on the path ahead but you have spanners thrown into the works, rachel reeves' budget

and the gilt market, the biggest loosening to slow the pace of rate cuts in the u.k., on the other hand, donald trump's victory also prompting a repricing of beer we cuts because of the impact to growth from tariffs. goldman sachs changing their forecast for the u.k. yesterday cutting it. he saw the pound up against the euro but down against the dollar. markets think the u.k. will be less hit than the rest of europe. we had j.p. morgan asset management's karen ward weighing in saying the fiscal response from europe could be inflationary, so it will be interesting how the bank of england process is that, whether they upgrade their forecast for growth off the back of the budget. it is far too soon to be putting in the impact from the u.s. election, but maybe we will hear in the rhetoric from andrew bailey. he has been talking about more aggressive policy, in contrast

to his more cautious economist huw pill. there is a question mark over december, one in four chance less than priced for a cut, and only three cuts priced by the end of 2025 so it looks like the boe next year will be slower to ease than the ecb and fed. tom: those complexities are real for policymakers at the boe and other central banks. lizzy will be covering all of that for us and in detail today. we'll bring you the bank of england rate decision later today. viewers in the u.k. will see the special coverage of the press conference starting at 12:30 p.m. london time. below that on tv and live on the terminal. later, speaking with the u.k.'s central bank governor andrew bailey about the decision and the outlook for rates. donald trump's decisive victory has sent shockwaves across the atlantic. europe's leaders are meeting today with the president-elect's

positions on nato and of the war in ukraine high on the agenda. we are live in berlin with the reaction. this is bloomberg. ♪

tom: happy thursday. european leaders have rushed to congratulate donald trump after his election victory. concerns linger over the president-elect's desire to end the war in ukraine. leaders will meet in berlin today. oliver crook is on the ground for us in budapest. mixed feelings then amongst european leaders. alexa viktor orban on one side, the germans arguably on the other. what can we expect from the meeting today? >> we should explain where we

are, we are in the arena where eu and political community leaders will meet in hungary, this is where viktor orban decided to host this meeting. officially not on the agenda will be the trump reelection. this has seismic ramifications for europeans here, many of whom are not terribly pleased with that outcome. that will be the focus of discussions in terms of responses to what the trump administration might portend, particularly in the case of ukraine. trump said on several occasions he will end the war in ukraine within 24 hours of winning the election. if he comes with some sort of deal that requires surrendering territory, what will they say? i put that question to the estonian prime minister who i spoke to last night in budapest, have a listen. >> if you allow it russia to

change borders by force, and they say we will give half your country back, it is not acceptable. i would stigma for a long time. >> this will be one of the major questions before european leaders. volodymyr zelenskyy will be here, how will he be reassured by leaders? and can europe support rain alone -- ukraine alone? there is a lot of question about what to take seriously and what to take literally. european leaders will be parsing that seriously versus literally and the response to the trump administration. tom: i like that you are color-coded with republican red behind you and democrat blue. maybe you should be tilted toward the red side in the electoral outcome for the u.s. is it going to be a game of two halves between europe and the u.s.?

is trump going to drive divisions within europe or is he going to unite europe and they come closer together to contend tariffs? >> the key question here. by the venue where this meeting is being held brings that question into relief. viktor orban and the hungarian presidency of the eu council is rotating right now, the slogan they adopted is make your upgrade again, hard to misinterpret what or bond means by that. the leaders are trying to skew this saying donald trump is an opportunity to finally put its competitiveness in the center stage. mario draghi will be here. this is the first summit in which they discuss their competitiveness policy. i spoke to the estonian prime minister about this saying this is a wake-up call. >> maybe it is not the best one, but usually when a person gets older and gains a little bit in

kilograms, a wake-up call comes suddenly. after that, you will work out and get fit, and so on. the estonian prime minister likening europe to someone who has gained weight, gotten old and basically donald trump will inspire them back into shape which is potentially an apt metaphor given where we are standing here. if we carry that metaphor to its absolute limit, the strongest players on team europe are germany and france, one last time donald trump was in presidency you had emmanuel macron's mandate in france, and in germany angela merkel who was a strong figure, we had basically the collapse of the german government so it is a very different story for europe today. tom: love this morning and allergies, does europe slumped back onto the sofa and continue watching the sport on tv or get match fit for this contest?

we will be speaking to the ceo of commerzbank. we have been speaking about the possible integration with italy's unicredit. banking mergers part of the agenda for european leaders. that conversation coming up next. this is bloomberg. ♪

tom: commerzbank has raised its full-year outlook and plans another share buyback as it seeks to fend off an unsolicited approach by rival unicredit. the ceo said unicredit's approach so far has been quote interesting. >> whatever comes on our table, we will definitely look at it but at the moment, i do not have anything to judge. there has been no reach out on that. >> i you had any conversation

with andrea orcel the last month or so? >> we had a short interaction right after the first purchase. then a longer very professional investor meeting. there will most likely be an investor meeting after q3 to discuss results but nothing more. >> he says he sees value for the business, for the sector for europe from this kind of tied up, do you see value in a tie up? >> when you look on integrations, you have costs and synergies, you can achieve when you achieve domestic integrations, cross-border synergies are difficult to achieve as we all know because there is one missing piece of the puzzle and that is the banking union which is not completed. which you need to really see cross-border synergies, which make a lot of sense, but we don't have that yet. when we talk about benefits, it

is about domestic benefits. it is very clear and we always said that when there is something, we will look at that in the interest of all our stakeholders which is not only the shareholders but also the clients. >> we do have some of the banking union elements in place, but not all the elements of the deposit scheme. is that the missing piece? tom: the ceo of commerzbank bettina orlopp speaking to anna edwards. donald trump's comeback rolls on with a republican clean sweep in sight. p and futures pointing higher. 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!

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tom: good morning, this is "bloomberg daybreak europe," chaim tom mackenzie in london. asian shares tick higher after the s&p's best postelection day in history. the head and boe both look set to cut rates today with donald trump's return clouding the outlook. kamala harris concedes the u.s. election promising a smooth transition of power. she tells supporters to keep fighting for their ideals. >> while i concede this election, i do not concede the fight that fueled this campaign. tom: plus, political turmoil in germany. chancellor olaf scholz calling for a snap election after firing his finance minister, as his coalition collapses over government borrowing plans. germany reflecting on the political uncertainty in that

nation, but the trump trade is still front and center, the riproaring gains that came through for u.s. equities yesterday with the best performers from the s&p in history postelection, gains of 2.5%. european futures pointing up 0.4% after losses yesterday. ftse 100 looking to add 31 points, commodities giving a lift to that index pre-open. nasdaq 100 futures looking to gain 63 points, it ended up 2.7% yesterday. the selloff in u.s. treasuries yesterday moderated. he saw a 16 basis point pop in the yield on the benchmark 10-revealed yesterday. today flat, 4.42. the fed expected to cut 25 basis points but the commentary from jay powell on the path ahead will be scrutinized. euro-dollar getting a lift on slightly suffered dollar today

after the dollar gained 1% yesterday. the pound also in focus, the bank of england specter to cut rates, 1.29 in the pound. brent also gaining 0.5% and 75.26. traders are taking stock, as donald trump and the republican party bask in a decisive election win. they may get a clean sweep with the house still in contention. u.s. futures pointing to gains, after the s&p had its best postelection day in history. let's bring in mliv strategist mark cranfield. art, how much further can this trump trade run? >> probably some distance if you think back to 2016, these similar themes, strong u.s. dollar, steepening u.s. curve, higher yields and a buoyant u.s. stock market. that ran all the way through to inauguration day from donald

trump because soon afterwards, we started to see the clearer policies he was ready to enact. we can expect something similar this time. their momentum will be very good. you wouldn't expect too much information in terms of what specific policies are going to come after january. because they will probably want to keep a lid on some of those two have the element of surprise. markets will probably think they have a relatively clear run all the way through to year-end. i was background, they are getting help from the fact that the federal reserve is going to lower interest rates again today, and around the world we generally are in a trend of the major central banks pushing rates lower, which fuels into what is already quite a strong situation for global markets and the china npc this week where more big numbers are inspected in stimulus to hit the economy soon as well. tom: that decision from the national people's congress will

be an important element. talk about the central banks because things have changed since the election of donald trump. yes, we expect cuts from the fed and boe today, but to what extent do we see central banks diverging next year? how are markets are pricing around the ecb and the boe? >> if there was a surprise to anybody in the major markets yesterday especially, it was the weakness of the euro. i think people were taken back, they expected the gun and you want to be relatively weak, but maybe not the euro. people think there is a risk that potential new tariffs on europe, in relative terms, could be more severe than they are in china in the sense that they do not exist and europe is not so well prepared for it. so that is a shock in that point of view. that means, in turn, the european central bank will probably have to do more heavy lifting. because of the federal reserve

next year will slow down rate cuts, possibly take a long pause, that means the european central bank who work cutting on the fed cutting to her basis points next year. that alex very unlikely so the european central bank will be thinking if there is a risk to our economies and the fed doing less, that means even more from the ecb. that is what markets are pricing into the euro. as you announced at the beginning of the show, we have the risk of a german early election, as if the euro didn't have enough problems it may be dealing with a snap poll. look what happened last time france had a snap poll, it was not enjoyed by the euro currency. tom: that challenge for the euro in germany with all the question marks but what a trump presidency will mean for the euro zone. mliv strategist mark cranfield. talking of which, kamala harris conceded yesterday in a speech, the 2024 election

officially to donald trump whose victory saw him flip key swing states and the gop retake control of the u.s. senate. the fate of the house yet to be determined but democratic hopes of retaking the chambers seem to be fading. for more analysis, thomas gift, director of the center on u.s. politics at university college london. thanks for joining us in the studio this morning. let's start with the question about the house. is it your expectation republicans will get a clean sweep? thomas: i think it will be close but ultimately, they will get it. we can see that the huge red wave yesterday was enormous. i think this is a general trend against democrats in favor of republicans. trump, the senate, the house makes sense. a clean sweep will make it easier for trump to get through his legislative agenda. tom: talk about the power dynamics where you have control of the senate, the presidency

and house and a supreme court that has given you a certain degree of immunity in office. what kind of leverage will this president have in the context of presidents going back for the u.s., how will this be for president trump to enact that policy agenda? >> this will be trump unbridled by the prospect of a new election. there are still constraints. republicans will not have 60 votes in the senate which would allow it to override -- allow bills to go through -- so, there are some challenges but generally it is great for republicans. tom: what are you watching the first 100 days of this presidency that starts in january? >> one is what kind of tone trump sets. he spoke relatively conciliatory at his announcement yesterday but will he go on this retribution tour that he

promised to use the federal government and apparatuses of the executive to go after political adversaries. on policy i expect a slew of executive orders pushing for tax cuts, diminishing them to 15%, and tariffs are the big issue. trump has been ideologically consistent on tariffs. tom: when it comes to the democrats, there will be a lot of soul-searching, as there always is on the back of a political loss of this scale. what does it mean for that party? thomas: the democrats have to be honest with themselves. what they are doing is not resonating with the american public. that much is clear. there will be questions about how procedurally the primary process worked. joe biden waited a long time before he stepped down. kamala harris was only the

nominee for 100 days. that did present challenges for her. she got a huge boost in positive media coverage. add kind of this honeymoon period but there was not a clear message about what she would do her first 100 days in office. tom: on some analysis, biden has been one of the most successful presidents pushing through policy including the inflation russian act, the chips act and infrastructure act. thomas: i couldn't agree more, i am surprised by how low biden's approvals are simply by how much he has achieved. often times with opposition from within congress. ultimately, it is about outcomes. joe biden may not be responsible for inflation, but when you look at prices of food and groceries pre-pandemic on till now it is up 25%, that was the big issue. i think kamala harris made a strategic error by making this

election a referendum on democracy, saying democracy is at stake. if you look at pulling data, only 3% of americans said that was the number one issue in this election. upwards of 20% said it was the economy. tom: given everything he said on the campaign trail, are we looking four years down the line at this moment as the start, the beginning or the end of democracy for the u.s.? thomas: i am relatively sanguine about the future state of democracy. what we saw in 2020 was that democratic held. it did require individuals to make good decisions of the right time. we saw many january 26 rioters many are in jail. challenges to the electoral results wind into through the courts where most cases were summarily and correctly dismissed but there was worry.

tom: he is and charge of the doj and has a vice president who says -- thomas: i agree, he is untethered. tom: domestic politics in the u.s. is your focus. u.k. relations, we have a labour party, tensions in that relationship, how does the u.k. navigate this? thomas: during donald trump's first term in office, he had a close personal rapport with boris johnson. i think that was why the united states and u.k. worked well together during that period. that will not be the case with the labour government and keir starmer in particular. i think there are certainly worries about what these tensions will portend for the special relationship. tom: appreciate you coming to the studio bright and early to give analysis around the shifting sands of u.s. politics. thomas gift, director of the center on u.s. politics at

university college london. coming up, our exclusive interview with hensoldt's ceo. we will be talking about the trump impact on the european defense sector and the political uncertainty in germany. this is bloomberg. ♪

tom: happy thursday. we will do a deep dive on the defense space. earnings crossing from the key defense manufacturer rheinmetall confirming his forecast and full-year sales of 10 billion euros, marginally above the estimates. full-year operating margin expected to come in at 15%, the

higher end of the previous range and sales above the estimates of 2.4 5 billion euros in the third quarter. speaking of which, german defense electronics firm hensoldt reported revenue growth of more than 20% in the first nine months of this year amid strong demand for its radar systems. orders for its air defense detection technology are rising as the war in ukraine continues to age. very pleased to say we are joined by the ceo of hensoldt, oliver dorre joining me from berlin, there is a lot of politics domestically and internationally. talk about your reaction to the collapse of the german government. what it means for your company and the sector. oliver: indeed the situation at that moment is still very dynamic. i think it is too early for a

final assessment of the consequences and impact for the defense sector. however yesterday in the statements of chancellor scholz and of vice chancellor habeck i heard a very clear commitment from both for spending on german defense, as well as for supporting ukraine. i think this commitment is for the defense sector, especially for hensoldt, reassuring in a time of turbulence. tom: you could be looking arguably at a more defense support of in the months ahead. oliver: the chancellor, that is an important thing. what we heard is they at least tried to close 2024 without any turmoil. he is calling for the confidence

vote in january, which will lead to elections i think end of march. that is what they announced. still some time ahead but anyway i think the sentiment in germany even now at the backdrop of the u.s. elections is that they confirm strong spending on defense and that was the discussion in the budget already. tom: is the election of donald trump good news ultimately for the european defense space? oliver: you saw the sentiment on the market yesterday where we saw at least growth for the defense sector. hensoldt releasing our earnings results. we had quite bumpy, finally close to 2% growth, so very clearly, this is a call for

action for germany and europe to take responsibility in defense spending. while we are struggling with 2% gdp spending defense budget, at the backdrop of this vote, we should be aiming for three to 5% of gdp. tom: a call for action. you talked about earnings. there was a small upgrade to the outlook part of that down to momentum around the orders. oliver: very clearly, we had a couple of shifts also to next year. for sure, we will see the continuation of air defense orders floating in for the european sky shield initiative. we have the first four orders out of a total of 23 nations that have joined.

i think that will be a strong element. it is of the is this year as we reported we see quite a breath in our orders which is important for the resilience of our growth model. from esg the company we acquired we have a major contract coming in on logistics, almost 100 million. in the air traffic management segment, we signed orders for air surveillance radars with the australian space center. we have also signed a contract with the german dfs on bringing our passive radar, qualifying it for possible air surveillance. in that breadth, i am confident about continued growth in 2025. tom: you talked about the integration of esg and that was

a positive in recent earnings. does that give you the appetite -- you have integrated the business largely now -- does that give you the appetite for more aqua's issues? -- acquisitions? oliver: i have to say we are really proud. largely integrating esg with 1400 people and roughly 300 plus million of revenues doing that in only 200 days i think is quite an achievement and shows that hensoldt has the capacity to grow in organically with acquisitions. by the end of the year at our capital market day, release our northstar vision 2030, and in organic growth will be part of that strategy looking at internationalization on one hand and technology on the other hand

to catalyze our digital initiatives. tom: which markets are you targeting within europe and overseas outside of europe in terms of that growth push? oliver: i have set an ambition that as we go forward, we will have 50% continue dependence which is our anchor on the german market. europe is growing. that is what we see as orders come in. then we look at 20% global markets. i did quite some travel recently. i joined chancellor scholz in his mission in the -- india. i met a couple companies. that is also in line with the german g2g foreign policy. we looked at aipac, i visited japan, singapore. let's see middle east how that

continues and u.s., i visited the ausa, we are partnered with the abrams tanks. that is the focal point as we go forward. tom: global ambitions clearly. hensoldt's ceo oliver dorre. a modest upgrade to the earnings with a touch on the politics of germany and europe. plenty more coming up. this is bloomberg. ♪

>> this is the emergence of a new power structure in the united states. >> we have a new investment regime most likely the next four years until the next midterm elections. >> you can't actually commit to some of those trades. >> the knee-jerk reactions we

are seeing may get reevaluated. >> it could be small caps that end up correcting. >> it may benefit more of the equity investor versus current investors. >> i listen more to the credit investors and think what does this mean for the places i want to be in equity markets, that's why you go to small caps. that's why you put together a basket of stocks that has a high percentage of domestic revenue. tom: just reacting to donald trump's resounding victory in the u.s. election yesterday. small caps rallied 6% by the end of the close. the best rally for the s&p on record. u.s. futures pointing up by 0.2%. after the 2.5% gain yesterday. the dollar index offer today but it rallied 1% yesterday. pain across the trades around the mexican peso.

euro taking a big hit. the 10-year yield jumping 16 basis points yesterday. a breather across treasuries and bitcoin soared yesterday above 75,000. let's have a look at what to expect from the bank of england. trump's victory makes things more challenging for the central banks. the markets pricing a cut today but december is a tossup, just a 40% chance the boe will cut in december after today. we will listen to the bank of england governor. citigroup saying the budget will make it more difficult for the boe to cut as aggressively as many expected. plenty more coverage, stay with us. this 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.

; good morning from london i'm anna edwards alongside guy johnson and kriti gupta. an hour away from the opening