>> traders with the impact of donald trump's incoming agenda, bitcoin surges for the first time in the dollar hits a new high.

marco rubio expected to be secretary of state. a breakthrough live at the u.n. climate conference, live pictures right now from the conference. tom: yields are up equities are down repressing across the equities market after fresh pricing, profit-taking coming through and european futures erasing the gains that came through. in wk the ftse is lower, nasdaq

futures point lower off by 1/10 of 1%. let's flip the board, traders come back to that asset class and money moving out of u.s. treasuries. euro-dollar under pressure and softness continues. parity is something we're looking at. currently down versus the dollar.record after record pushed aside. brent crude down 3/10 of 1%.

avril has a check of the asian markets where there is pressure. >> there is so much pressure, is looking real bad for the markets today. all the sectors are down. infotech down by the most since september, csi clock gains, hang sitting extending declines as you might wonder why. investors not liking the added layer of uncertainty. china hawks, what is there going to be for the region? seeing chinese tech names getting hard ahead of earnings. the hang seng is down, flip the board. i wanted to give you a sense of risk off, chinese authorities

bowling a plan to cut taxes for the megacities. putting the tax, the idea to spur appetite but despite initial gains on this bloomberg gauge in hong kong look at how it is sitting now. not enough. flip the board. take a look at how do trump trade it playing out. story of the dollar strength the currencies are getting really hot, chinese yen getting double whammy. coming through with another week fix, maybe on the monetary front and might be more tolerant,

about the trump trade. tom: weaker you want to be in the toolkit in beijing, indeed. ugly sessions so far in asia, a deep dive from avril, thank you indeed. superlatives coming thick and fast. lifting the total value above the pandemic era peak, betting on a boom under president trump, let's get more from valerie. records are being mowed down. >> you write to all for you she talks -- bitcoin up 30% and i want to compare to the meme

stock rally that we saw it in the early 2021. a lot of questions about whether this could ignite for off. let's talk about some trump trades that picked up steam stopped one of them being a record high and russell 2000 small caps seen as a beta to these trump trades. hitting the highest since 2021, the bloomberg dollar hit another high in the, uh, uh, uh, time since the election. it was like a cash holiday yesterday. yields are higher but the 10 year yield only up three basis

points. we have heard some warnings about bond vigilantes and a higher jump in yields to dent the equity market. >> who cares? market is saying your policies are unsustainable and advisors will warn him of such market impact. valerie: another jump higher could dent the rally but so far not seeing it. tom: indeed. a meme stock reemergence possibly in the offing. the new cabinet is beginning to

take shape, poised to pick two men with track records of criticizing china in his administration. marco rubio and michael waltz. let's bring in kriti gupta for the details. one name more familiar than the other, marco rubio. secretary of state is hugely important, what does it signal? >> rubio has been outspoken, but he is known as the connection to the latino vote and this is important because he hails from florida weather is a major cuban population.

he had his own run for president, when he was brought in to work with trump and they have allied in that way it was to tackle the border. now he's talking about china and since he has been sanctioned by beijing after years of harsh comments, it creates an amps up anti-china rhetoric. tom: indeed. china will have to work out a solution. see and then reporting that trump has pricked -- or picked kristi noem. kristi noem been picked as homeland secretary for the trump administration. talk us through a name that will be less familiar which is

michael waltz. >> he is tough on china. the people being picked have that stance and not just mike, it is the u.n. ambassador, a senator from new york, her name is police and it is important to keep this in mind because he's picking early supporters. the fact that he leans into his loyalty base and is tough on china is where mike walls is important because he has been very tough on china in a way that even in marco rubio has not done. remember japan, south korea,

trying to get more funding and the pacific wing of the defense department is underfunded and something no one is talking about, focus being on the middle east in ukraine. tom: very interesting indeed. beijing will be taking notice of these picks of course. thank you indeed. she is the anchor of opening trade. coming up, bond investors remain cautious on donald trump, we discuss that and more next, this is blue book -- bloomberg.

tom: welcome back to bloomberg daybreak: europe u.s. treasuries continue to face pressure this morning as investors look to rekindle the selloff spurred by donald trump's victory last week. some strategists hold tight to their neutral recommendation in the wake of the election though others see further upside to the s&p 500 after this fresh record. let's bring at this point the head of economic research at st. james's place who says 2026 might be the week that things reach a pinch point. the pressure coming through on the trump trade and yet the equity markets poke through, a mismatch it seems in terms of bond markets and equity markets. when does that reach a head? guest: equity markets will focus on the upside, um, we will see a

cut in corporate taxes so that is the bit that the equity market are focused on. cap it's clear that this is likely she how she can to be inflationary policies and that is why we are seeing bond market focus on the thing it cares most about. feels like they are reacting to different parts of the policy a gender, and what we will see if the tariffs come through if we start seeing curves on immigration also coming through those things will be inflationary and i think from 2026 onwards that is going to weigh on growth. so we changed our scenarios.

in the near term there is inflation but into 2026 the growth will be week. tom: is there naïveté to the equity mark story? guest: we think u.s. equities are quite expensive and so there may be short-term focus as i said on corporate earnings but also not clear what the policy will be, how quickly they will be implemented, the scale of tax cuts so this is speculative and

equities are still overpriced. tom: where does that take you do, where, where are you finding better value? guest: emerging markets and scope for upside versus the concentrated market of the u.s.. tom: your call is interesting given the challenges feeding into this economy. is that assuming the pain has been priced in? what assumptions are you making? guest: it's more about medium and longer-term valuations. i think the ecb cuts will

support credit conditions from the ecb, so we are likely to see temporary weakness stemming from the weakness in china, the china stimulus should stem the downside and sector composition, more balanced opportunities. tom: you are overweight equities, does strong dollar challenge that view? >> it may do a little bit, but it has underperformed for some time from the medium-term valuation perspective which is what drives the process. not so attractive. tom: so you, you, you, you like

valuations. when it comes to the increased fiscal spending, the budget may be higher, markets pricing in or phasing out any cuts this year for the bank of england and 50 basis points between now and june, does that seem rational? >> i think it is rational move to think stronger inflation should make the bank cautious. we see the stance as far as policy, no specific shop, television back to neutral.

something can to 25 basis points a quarter is appropriate so i actually think that budget and the way we've seen the reaction plate of does force our view but this should be gradual. to get to neutral whatever that may be, a gradual move rather then getting to neutral and beyond. you have got the fiscal reduced. tom: ok. thank you very much indeed, head of economic research with an overweight view, u.s. stocks looking a little richly valued. october cpi out of germany, some

color at seven a.m. and economic dater, unemployment dater out of the u.k.. later today is the monthly oil report, some details in terms of the outlook from that cartel. coming up we are joined by the ceo of a swiss software company looking to rebuild investor confidence after a damaging report and disappointing earnings coming up in a short while. stay with us, this is bloomberg.

>> until they are in a weaker position because growth has fallen as low as 3% china is dealing with structural issues. trump shock may force china to do the reforms needed to have more consumption. tom: ok. that was the ceo of red beanie associates speaking about china as it prepares for trump. some other stories, eu changes

policy to redirect euros to defense and security and the shift would apply to one third of the budget states. members will have more flexibility to support the defense industry. the u.s. military launched strikes with iranian groups in syria. central command says the strikes were response to the ability to plan future attacks. coming up, infineon is set to report earnings. our interview with sven schneider coming up next. it is risk off, futures are down

, bloodletting in the asian session in hong kong. hstech down, u.s. futures off after a 51st record high yesterday with the s&p above 6000. 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.

tom: good morning this is bloomberg daybreak: europe. these are the stories that set your agenda. asian shares fall after another record of the s&p 500 is traders way the impact of donald trump's

agenda. bitcoin surges past $89,000 for the first time the dollar hitting a one-year high. the president-elect team takes shape with four to senator marco rubio expected to be named as secretary of state. we will bring you the latest. plus, a breakthrough on a global carbon market. we are live at the u.n. climate conference in azerbaijan. let's check these markets. risk off as a challenge session, a painful session. pain traders in asia and the ripple effects as you look at european futures currently looking to wipe out more than 1% gains that came through for european stocks yesterday. currently european futures pointing lower. ftse 100 futures off by 38 points. commodities under pressure in the session today. s&p futures looking lower. that's after the s&p crossed through that 6000 level for the first time yesterday, a 51st record high. nasdaq looking to lose just shy

of 10 points at 21,002 hundred seven. a little bit of very modest pressure coming through in terms of nasdaq 100 futures. let's let the board, you do see some selling pressure coming through for treasuries. that trade is back after the holiday of yesterday. 432 is what has been yielded close to 433 on the u.s. benchmark. 10 yields up to basis points with selling pressure coming through across the curve. euro-dollar at 106. single currency down. do we get parity, euro-dollar at some point in the next few months as dollar strength continues at a one year high for the greenback varied bitcoin, yes it costs through 89,000 dollars. record after record tumbling in the face of this bitcoin bull market on expectations that the incoming trump administration will push through policies that are supportive, including putting in place regulators that are pro-crypto, even talking about a potential strategic bitcoin reserve.

trump has said he wants the u.s. to play an essential role to be a global superpower when it comes to crypto. 88,626. up. brent trading at 7170. to the earnings story right now. lines crossing from softbank. we know the focus is what's happening with the vision fun. some bets on ai. whatever they have to say about the next ai bet, softbank is up 50% year to date. first-half net sales beating estimates for softbank reporting half-year group results right now. in terms of net income coming in at just over ¥1 trillion in the first half. sales also beating estimates in the first half, ¥3.47 trillion. in terms of net income, a comfortable beat in the second quarter for softbank, net income coming in shy of 1.2 trillion yen. the estimates have been for around 290 ¥4 billion. a comfortable beat in terms of second-quarter net income. we have earnings crossing from the chipmaker listed in germany.

seeing first quarter revenue of about 3.2 billion euros. that is a mess from estimates of 3.7 7 billion. it's amiss when it comes to the first quarter revenue for nvidia, the preview. in terms of the fourth quarter, revenue came in at 3.9 2 billion below the estimates. but as the guidance on the first quarter that's going to get the attention of analysts and traders. we have been speaking to the cfo of that chipmaker. speaking with bloomberg's oliver crook about the latest earnings. take a listen. >> first of all, if you think of the motive, it's very different from all other semiconductor peers. why is that, it's in terms of regional footprint but also internist of the business exposure. regionally we have leading market positions in all important markets. number one in china, number one in korea number two, japan or

other markets. therefore you have diversification and we all know that certain markets are a bit slower, china, for example is developing very strongly, number one, number two, it's the contents. we are a leader in power, we are number one in automotive microcontrollers, which are used for a variety of functions. therefore everything which is centered around immobility or vehicles, autonomous driving, plays into our cars. that's why we were the only automotive supplier who could grow last year, 2% at least in a year where the number of cars was -- so these trends continue to be there, structurally there's absolutely no change, there's even a renaissance of plug-in hybrids, you also have a nice content growth. but as i said, the next quarter's will be overshadowed, over clouded by these inventory management's, but structurally

there is no change. on top of that there is new material called silicone car by where we are seeing a lot of additional demand. >> given these uncertain times in terms of inventory management, we don't know when these things change. we been waiting for the recovery of china for several years, recovery of the auto industry, it's hard to tell if there's uncertainty ahead. in these uncertain times, what can you control, will there be a larger focus on cost, this is been a focus for many german companies i have spoken superior >> it's an important point. you have to manage what you can control in this environment. it's of utmost importance. what that means to us as it needs to be a very strict cost control. you may also be aware that we have announced in may of this year, a structural margin improvement program where we are targeting a high triple digit euro savings amount in the first half of 27 where we are making

great progress. but it's also investments. we have cut our investments from 10% compared to last year 20%, compared to two years ago, and we are focusing on the strategically relevant decisions like module for her or the silicone car by extension. you need to manage that. the other thing, which is very important measure in such an uncertain environment where you're absolutely right, you do not know when the demand comes back, is the loading of the inventory management. these are elements we are managing very closely. >> what specifically do you want to see from the next government in terms of support for the chip industry or the auto industry? what does this government need to prioritize? >> this is not a very usual situation in germany. therefore we are all now waiting to see the political agenda and

making the decision when potentially new elections will be held. what we would expect this first of all the government is back in full force so they can address the geopolitical, the economic challenges, which we are all facing. we want to have certain see on the regulatory framework. i would recommend to focus on the energy topics. i would recommend to focus on international trade elements with new government somewhere else in the world and that's coming in of the defense side. i think the new government needs to take a pretty clear position in order to safeguard the situation here for all of us, not only economically. tom: the cfos speaking with bloomberg's oliver crook in the last few minutes. redheads crossing the line right now. this is an upgrade to the 40 year view.

they have upgraded that view. they now see 10.4 billion euros to 10.7 billion euros. the estimates have been for 10.3 5 billion. in terms of the full year view, coming in a higher, potentially and specifically at the top end of that range versus the estimates. third quarter sales missed estimates in the third quarter came in slightly below the estimates. it came in higher than the estimates for buyer. that stock is down around 27% year to date. let's get back to the software space because swiss software provided is presenting outcome of a business review in the capital markets day today. after damaging report by shortselling hindenburg research in february. third quarter earnings also

falling short of expectations. he was appointed ceo in late april following activist pressure is joining you now. on a busy day, we appreciate you coming in -- >> is a say, it's an important day for the company, i might have to check my pants pockets of the drawers -- tom: specifically, what will you outline to get this company back for the hindenburg research report dropping before you took over, partly your role is to restructure the business and reassure investors. and it looks like investors still need to be reassured. >> as you may know, the

investigation just to respond to the allegations so we are starting from the clean slate from this perspective and the goal is to reinsure the investor on the growing strategy. basically on the position of the company, and i found a solid foundation of the company, so it's not a turnaround, it's basically a transition to something, which is, to our position will allow us to go above the market share. tom: the hindenburg report alleged major accounting irregularities in the practice was an open secret. the independent review suggested that that is not true and that do not hold water, just for context for our viewers. what is the biggest challenge for you in the business right now? >> today we articulated our growth strategy to expand what we are good at, which is to provide a solution to banks, and

also 1000 banks across the world. so we are the market leader of the banking industry as well. what we like to do is to expand in geography and the u.s. and western europe. what we like to expand where we are good at. tom: there has been a bit of delay and we have seen some evidence of delay decision-making partly as a result of the hindenburg report. is that an issuer being resolved? gc that decision-making being slow from some your clients? >> it was the case in 2024 as we lost to the cycle that has some impact of the third quarter. but in a way, as i mentioned -- tom: is it continuing? >> we are starting new. that's behind us. tom: the part is behind you? what about in terms of that

cloud delivery, is that gaining traction among the smaller lenders? smaller lenders you seem to be doing well, larger lenders, is a gaining traction when it comes to cloud delivery? >> all these banks are struggling with operation on issues and to be more compliant with regulation, as well as to take full advantage of the new technologies of cloud engineering ai as well. it's moving to cloud strategy and to cloud architecture -- tom: are you locking in clients with the larger banks are out there? >> is a good question because it's us -- because it's a strategy. the larger bank, they would like to deploy on their own cloud and i was in london to visit the ceo of a very large bank and i told him i like your software but i would prefer to do that in our

cloud. small tears, small banks they like being on this as well as software service and to take this's operation. tom: what's happening with on premise licensing. it makes up 30% of sales, it's been challenged post-covid, are you seeing a turnaround? >> according to the market of which we are connected, it is 67% of the market today in 2028 on the range of 59 from geography as well. we continue to be to our customer, it's a choice of deployment. tom: there has been a gap between your pre-cash flow targets and goals and the consensus amongst market analysts. you've come out with goals today. you're targeting free cash flow until 2028 and you are targeting

over one point $3 billion in annual recurring revenue until 2028. how confident are you that you will meet those goals? >> we have connected about our market opportunities that in order to be confident we would go above market and free cash flow where we are not issuing the company. our issue is to go more than the market and basically this company can form significant business changes. to have more recurring revenue. it's behind us. we are doing 80% today of recurring revenue. it's a company which is good at generating a free cash flow. but the investor would like to see is a strategy and it's what we would like to do. tom: jean pierre, thank you so much. the ceo, really appreciate your time this morning. a busy day for you.

coming up, climate negotiators secure a breakthrough on day one of the cop 29 summit. we are live on the ground with the details. that is next. this is bloomberg. ♪

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when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card from chase for business. make more of what's yours. >> demand is at record high with the oil and gasoline. demand is out there, the industry has been effective at supplying the demand. that's what you are seeing and fortunately for us with the turmoils in the middle east the available supply has kept the markets fairly stable. so it's less of a demand issue with a lot of supply. tom: the ceo of exxon mobil speaking to joumanna bercetche about oil demand. let's bring in joumanna, who is

standing by for us. horizons middle east & africa inc. are speaking to a number of guests they are taking the temperature as it were. joumanna: that's a good one, tom. good to see you. the corpsman, great to see you. i'm going to start on a less positive note. your own assessment. they are actually stole in the last couple of years. this year, and many agencies are warning that this is going to be the case. it's going to be one of the warmest years on record. what he think these policy efforts have stalled so much and how do we bring momentum back? >> it's true that we need to step up in the world needs to step up. we need to meet our shared objective.

the action and outcomes. joumanna: people are calling this the financing copy because there's focus on financing needed for developing countries. we have one major announcement out this morning. on the financing front, what do you think we need to see in order for this cop to be successful? >> firstly having this resolved on an agreement for the credit quality standard which will be in operation in the global car market. if we could get it to the next level it will help facilitate the establishment of the global carbon market which will show additional financial -- into the developing market because the investment will go where the highest level is valuable. beyond that, this copy the

objective is to define a new collective quantifying goal. and there is no doubt we need to be successful. and we need to be successful in leveraging significantly additional private sector investment. and we have 10 more to go. so let's hope that we will get to the outcomes we need. joumanna: there's one figure whose presence is moving large, even though he's not here in person. that is president elect donald trump. let me ask about climate policy. how much of a death glow would it be for climate policy, climate efforts if the u.s. were once again to withdraw from the u.s. agreement? >> the american people have democratically chosen their president. and this is the trump administration. they will represent the u.s. and

global conversations of climate change. we hope that we will remain on track for securing carbon neutrality in global net zero. it is the founding member of the oecd. and it's the coming administration as we engage with all elected governments across our membership at across our climate countries. joumanna: are you bracing yourself or rocky relations are more difficult discussion? >> our job is to work with the democratically elected governments. and of course with a clear vision to provide global leadership when it comes to tackling climate change effectively. joumanna: back in september the oecd said the global economy is turning the corner, but you did cite risks, geopolitical trade risks and of course those risks have come to the fore with the return of president trump. he's talking about tariffs,

universal tariffs, broad-based tariffs, what does that due to the global outlook? >> we have seen the global economy turned the corner. 3.2% on the back of robust growth. and with inflation continuing to come down and countries around the world, moving forward we would like to see continued strong growth. it is always better for countries to talk to each other and to tackle any challenges in any issues through dialogue rather than in any other way. joumanna: has the oecd prepared or is it looking to do any work on the economic impact these tariffs could have should they be applied? >> we will work with all of our memory country -- member countries in partner countries, and we will provide our advice on this device to member countries. and that will include providing our best advice to the incoming trump administration.

joumanna: so one other element of his election is he was supported by the tech community, some big tech ceo's. i just wonder if you see that is having any direct ramifications on the global tax reform that they have been putting forward and whether you see any room for further discussions around digital taxes, and the fact that president-elect was so supported by them torpedoing those? >> i would suggest having certainty and stability is unequivocally in the best interest of international priority and u.s. businesses and u.s. tech businesses. they deal that has been negotiated by more than 140 companies, we believe is in the best interest of multinational enterprises in the united states. of course we would like to see the final step taken as soon as

possible. global minimum tax is now a reality. there's more to be done. what is the alternative. the alternative is we will see -- which will not be in the best interest of u.s. companies. joumanna: thank you so much, i will throw back to you, that was the oecd secretary-general. tom: joumanna bercetche at cop 29, thank you very much. there's a lot more coming up. stay with us. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. happy monday. reminding you superlatives when it comes to the asset class of the moment. yes, it's bitcoin, record after

record falling for the cryptocurrency. talking about having a strategic reserve for bitcoin. but in class regulators. making the u.s. the center of the crypto industry and again just keep coming through. that bullish way for crypto and bitcoin up by 30%, six november the fifth. coins like dogecoin up even more. 60% for dogecoin. now, let's let the board and have a look at tesla, another beneficiary. elon musk, we see with the role is for the ceo of tesla but expectations that whatever role he has in the incoming trump administration will be positive for the electric vehicle maker and maybe the other businesses as well. currently up 40% since november the fifth. we will see if that can be sustained. let's put the board and look at what's happening with gold because there's a lot of pressure as money has moved into things like bitcoin and u.s. equities. your today it is now just dipped slightly below the gains. it has crossed above the 6000

level and gold is now underperforming year to date versus the s&p 500. deutsche bank saying that is still the case longer term exposure to the other metal on the central bank buying in the haven demand. bloomberg will bring your exclusive interviews from the annual ubs european conference taking place over the next two days. later this morning we will be speaking to the bank of finland governor as well as ubs investment bank chief strategist. the opening trade is up next. this is bloomberg. ♪

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anna: good morning from london i'm anna edwards alongside guy johnson and kriti gupta. an hour away from the opening trade. infineon lowers its outlook for the first quarter of 2025. a midweek car chip demand. we will break the latest earnings from the u.k. farm in giant astrazeneca. risk off in asia as share slump in shanghai. they weigh rp