tom: good morning this is bloomberg daybreak: europe of tom mackenzie. the u.s. houses called for the

republicans giving the president elect control of government. inflation date or keeps them on track. dollar strengthens. plus mega pension plans, rachel reeves wants to boost economic growth, our interview. happy thursday everyone. siemens up front and center, 2025 revenue increasing 327%, at

the top end of this new range for seamen that is higher than the estimates in terms of revenue for 2025. waiting for fiscal stimulus, we look for details, fourth quarter net income is bank , bang in line, fourth quarter orders slightly above estimates. a beat for siemens. just shy of 23 billion. full year dividend per share 5.2 euros above the estimate so it looks like the beat from siemens. we will speak with the siemens

ceo, stay tuned for that. asml is having investor day, asml is keeping it outlook unchanged, it is keeping it unchanged. at 44 billion euros, that will be positive for investors holding onto the outlook despite the fact that they lowered their guidance, down 7%, 12 billion euro buyback program, top line is they are maintaining the outlook with the top view of 60 million euros, without these you

cannot make semi conductors, let's get to the markets. inflation date or bang in line with expectations that you will get the cut, 80% chance of a cut is the news. expecting to see a marginal take up with 2.2% in october, hearing from jay powell as we hear about the path ahead. futures .2 modest gains, ftse

looking flat. s&p futures are lower after a flat session and nasdaq futures we saw the front end of the two-year, 431 radel, japanese yen under pressure. listing equities. bitcoin in continuing to push through fresh records. let's get to the politics and donald trump achieved full control of the u.s. government after trump returns for the

first time since his chaotic exit, he met with joe byron in the white house and agreed to a peaceful transition. let's get more with kriti gupta on the power and leverage trump will have. >> across the government in january and spring congress has to talk about deficit and domestic policy is, a lot easier to have republicans on the same page. tom: then and women being tapped by trump, one name is matt gaetz.

>> this is a florida congressman who has been previously accused of sex trafficking a minor so he is under investigation. it was told he would not be charged for the crimes but he is still the one cabinet pick that people are raising their eyebrows on, even if he is from florida he may not have the support of other candidates from his cabinet. tom: he has denied the allegations and does not face the scrutiny, he denied the allegations. what do we know about jack smith? >> jack smith is a thorn in

donald trump's side, a special doj prosecutor. he has been prosecuting trump but is looking to take a step back according to the nyt resigned and before trump takes office. no commentary or statement from jack smith but this was one of his reasons the donald trump was thought to not be eligible, it opened a constitutional battle. the supreme court said he cannot be sued or prosecuted so that undermines the case. tom: pretty good up there thank you very much indeed.

these individuals are tapped to have roles within the administration and the trifecta falling to the republicans. trump and republicans firmly ensconced. subdued u.s. inflation cpi bang in line, neel kashkari says inflation is headed down toward the 2% target. guest: we don't know, not seeing a lot of risks. i would be concerned about 2% level, those risks existed before the election and we need to just take our time and let the data guide us. tom: ok. let's bring in valerie, talk us

through the dater on the cpi print, what is it tell us about inflation? >> bang in line print, .3 as expected year on year but if you look at the market reaction they took this as a dovish print. seems like we were gunning for a hot prints, steep rally in the two year yield closing down, 80% chance of a cut shy of 50%. fields attempted to rally but

bond vigilantes took over, the curve saw the biggest steepening this year, 12 basis points at the same time we had the budget deficit in the republican sweep of congress and presidential -- and the presidency. this is the bond market saying i'm keeping my eyes on the fiscal deficit. the fed chair speaks at 8 p.m., a late one for us in london. market will watch changing language, speaking after we get ppi later today. he will get questions on the

administration inaugurated on january 20. keep your eyes out for comments pushing back on republicans wanting to get more active. tom: indeed, we will be tuning in and listening. let's bring in avril hong. standing by patiently in singapore, not a down day. nikkei negative. how is the market shaping up? avril: it looks bad today. trump's win with the trifecta the cementing those bets. asian stocks are down but look at the way the yen is faring against the greenback. levels we have not seen since july 22. this makes a buck case for rate

hikes to go higher next you have because of inflation. what is different flipped the board compared to july's yen weakness is it is also coming against the backdrop of weakness with other asian currencies so to sum this gives us some clues why authorities have not been active, pushing back against the yen. flip the board again and take a look at what we've seen, amid macro weakness, indicators out of china, investors unwilling to take risk, erasing the gains from earlier the session so that backdrop but nikkei as you say

turned tail, part of this risk off in the markets. tom: dollar strength. avril thank you indeed. donald trump taking matt gaetz as attorney general he will have to be confirmed but it is a signal. more reaction on the appointment next. this is bloomberg.

tom: welcome back, happy thursday, welcome to bloomberg daybreak: europe. donald trump's party has full control of the government. kevin mccarthy welcome the

nominations with the exception of matt gaetz. >> world leaders have a relationship with trump and it brings greater stability, america will not be pushed around and he wants to negotiate. tom: i'm joined by josephine from northeastern. mike mccarthy he thinks that matt gaetz would not be appropriate. let's talk about the fact that they have control, can we assume the key policies will sell through congress?

josephine: there will not be much opposition because the senate is controlled by republicans. when it comes to trump's priorities will be about the border which will get support in the house and the senate so as you say controlling all three, house, senate, presidency, supreme court. he dominates across the board. tom: the first hundred days, what do they look like? josephine: very loud punchy policies around the buddha, -- the border. speculation about pardoning the

january 6 rioters, and a part of his platform, those things will take priority. tom: are there policies that will face friction or is it playing sailing now? are there areas that may be problematic? josephine: he has made inroads and support from young men, he might face pushback from welfare reform, that might be a wedge issue in congress so immigration and tax cuts will get support. tom: what do you read from these

individuals? marco rubio is more consensus and then you have controversial matt gaetz on the others as attorney general and defense secretary. josephine: we are seeing what trump second term will be a. there will be insiders pushing back on trump's agenda but he is selecting people who will push through his agenda, a smoother term so most of these people are loyalists. marco rubio was anti-trump in 2015, not sure that there will be much debate, this will be

about following trump's agenda and marching to his drum. tom: john thune will be leading the senate, elon musk wanted rick scott, it is not rick scott it is john thune who has that credibility. josephine: it depends on how much he will mobilize so we will have to see. tom: how do the democrats pick up the pieces? what is the strategy for the democratic party? josephine: they don't even know. they will have to go back to the drawing board and have to rethink how they are trying to counterweight trump. it has been about anti-trump,

that does not resonate, biden was successful, record turnout in 2020, depressed turnout this time. abortion is not mobilizing democracy. these are not the selling points they thought they were. tom: indeed. a busy day. we have lines crossing. let's give it to the earnings story. the manufacturer of iphones and ipads and ai infrastructure has net income in the first nine months of a hundred six billion taiwanese dollars. revenue coming in at 4.7

trillion taiwanese dollars so earnings-per-share 7.67, nine months of the year net income of 100 and billion taiwanese dollars, the manufacturer for iphone, ipad in infrastructure. waiting in terms of who does full-service and they booked slow sales. net income coming in as a beat. above estimates so it is a beat. a menace when it comes to operating profit.

coming up the first ritual reeves mansion house speech, how she is reforming h-shares up next. this is bloomberg.

>> if he pulls out another 95 or 96 countries, he would concede leadership to china, the thing he says we don't want to do and diminish the ability of the world to respond. tom: former secretary of state speaking with haslinda on the sidelines of the asia forum.

other stories making the news, marine le pen could be barred from the next election after prosecutors ask for a five-year ban. they're accused of diverting euros in funding to build a platform in france. she the allegations and the main omicron calls on the european union to synchronize and not move faster than competitors. the u.s. and others chose their own time frames. chinese state-sponsored hackers perpetrated cyber espionage campaign and multiple companies

were infiltrated to steal records and compromise communications. targets included trump, jd vance and members of kamala harris's campaign. a bullish bet, the maker of chipmaking machines reaffirms demand outlook on ai, the details next, that is coming up, this is bloomberg. let's go boys. the way that i approach work, post fatherhood, has really been trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families, like my own.

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>> good morning. this is bloomberg daybreak europe. these are the stories that set your agenda. the trump trifecta. u.s. house is called for the republicans. giving the president-elect control across all three elected branches of government. fed officials debate the path of u.s. rates as inflation data keeps them on track for another cut. an equity slide with the dollar strengthening to its highest in two years. as ml reaffirms its bullish learning -- long-term outlook. bets on an ai driven boom in demand. let's check in on these markets. european futures pointing higher after two days of losses. we see to what extent the earnings stories play into that. futures up 1/10 of 1%. flat across the u.s. equity market yesterday. seemingly looking for the next

catalyst. will that come with producer prices later today? consumer prices coming back in line with the estimates. ftse for losers -- futures flat. modest losses. nasdaq futures looking to lose about 44 points so far. let's look across asset. yields down five basis points on the back of an inflation print that came in in line. ramping up bets around a cut from the federal reserve. now about an 80% price of that -- chance of that. 430 right now. yields up in the session by two basis points. 155 on the yen. you are still at the two-year highs for the dollar and that's proving problematic for asian currencies and stocks as well. the japanese yen down three tens of 1%. bitcoin crossed above 80,000. up one for -- 1.5% so far in the session.

7192 on brent. down 5/10 of 1%. the world's biggest makers of advanced chipmaking machines, extreme ultraviolet machines, reaffirms its outlook on ai strength. they said global chip sales will exceed $1 trillion by the end of the decade. let's get the detailed from sarah jacob who has been pouring over the numbers and the details that came through just about 30 minutes ago. asml it's 2030 sales outlook. we knew that would be key. give us the details. sarah: good morning. yes. asml will be holding its investor day today. they confirmed the forecast for revenue between 44 billion and 60 billion in 2030. leveraging artificial intelligence opportunity which allow its to dig never --

deliver revenue. ai is the next big driver of productivity across the side he. the company also said it expects to return significant amounts of cash to shareholders through a combination of share buybacks and growing dividends. tom: what does it say then about the long-term strategy for asml? many in the markets work on off their settings essentially when they cut their outlook for 2025. you saw that massive drop in the share price early this year. talk us through the longer-term strategy and what we've learned about asml's prospects then. sarah: yes. like you mentioned, the ordering take missed estimates. surprising. they got his outlook for next year and basically said that 2025 would be more gradual than expected. that sparked a selloff in its own shares as well.

what we are seeing now, this shows that the outlook for next year is more of a short-term blip. asml is still bullish allowed the -- about the long-term opportunity. ai is the big driver of this. it's even saying that it expects the annual semiconductor market growth to be iterated about 9% between 2025 and 2030. going down toward 2030, it certainly looks very promising for asml. tom: sarah jacob on more positive fortunes for asml. thank you very much indeed. the details of this semiconductor industry and sector. back to the earnings story. full year a bit of between 4.2 billion to 4.6 billion at the top end of the range and euros.

slightly above the estimates of just shy of 4.2 billion. slightly brighter prospects at that shipping company. tariffs will be interesting. we will speak to the ceo of that company at 7:30 london time. to the u.k. were rachel reeves says the u.k. will legislate to paul 1.3 trillion pounds of pension savings into a series of mega funds to boost private investment and economic growth. the chancellor spoke to bloomberg's lizzy burden ahead of her mansion house address tonight. >> i think it would be wrong to speculate what an incoming u.s. administration would do. but we benefit and so does the united states from trade worth more than 300 billion pounds a year. that trade is growing. it's important for the prosperity of both the united kingdom and the united states

and we will continue to make representations for free and open trade that benefits our nations. >> when it comes to harnessing pension money to boost growth, what will you offer in terms of reform that your conservative predecessors didn't? >> what we don't have is mega pension funds. that's why the interim report that we are publishing looks at having a minimum size of 25 or 50 billion pounds, similar to what you have in canada and the united states. those sorts of mega funds will have the expertise to make those investments both in start up businesses and british infrastructure. >> lets different to what jeremy hunt did? he just finish this scheme. it made these exact points. do you really need a consultation? >> the difference between what we are doing and what the previous government did is we are going to legislate. the previous government haven't had a pensions bill for about five years.

we have a slot for a pensions bill in this session of parliament. we will be introducing legislation in the spring so we don't just talk about consolidation and the pension industry. anyone can do that. we actually make sure that it happens. that's the difference between this government and the previous government. we are getting on and doing the job. tom: u.k. chancellor speaking to our u.k. correspondent lizzy burden. it's plainly -- where were you? >> we were at a bio tag -- biofarma lab which was funded by pension capital. >> how significant does this announcement? >> the idea is to pull pension capital so that you can get past that critical mass. look at australia or canada. you can drive economic growth.

that's the idea. it has support from the ipp our think tank saying that this will list the you -- lift the u.k. off the bottom of investment. tom: she's not going to compel pension funds to invest in u.k. assets. something that has proven controversial. has she completely rolled that out? lizzy: there are two issues here. first of all, you've got to get this money into u.k. companies. what are you going to do about that? will you give them tax breaks? will you mandated? the other problem is, how are you going to get money into the pension pot in the first place? you've got businesses really stretch by this budget. the tax heights, the national insurance contributions going up , minimum wage going up. it looks like interest rates are going to be higher for longer. she didn't have those answers. apart from making legislation here, how is this going to be different from the conservatives? tom: this interview taking place ahead of the mansion house

speech. the first one is chancellor. what are we expecting to hear in this speech? how consequential is this for a chancellor who has faced some pushback? lizzy: it's been quite uphill. she's going to make her first big pitch to the city here at this address. she needs to give a plan for how the financial services sector in particular can feed into her growth vision. apart from the pensions reforms, we are expecting her to cut red tape. some announcements on the regulators as well. she will tighten her grip on them. interesting to see how sock -- how far she will go. keir starmer said he would march through the regulators. do we see a revival of the powers? the we see the government making the regulators use competitiveness as a primary objective? we will be listening out for both of those things. the other thing was talking about the importance of free

trade. under pressure to undermine donald trump's protectionism. she didn't rule out retaliatory tariffs. free-trade will be a big theme of the speech. tom: thank you very much indeed. speaking to the u.k. chancellor ahead of that mansion house speech later this evening. thank you. german politics. conservative leader freedom or has launched his election bid with a stinging attack on chancellor olaf scholz. the csu leader called the incumbent a lightweight and accused him of being responsible for polarization in the country. for more, let's bring in oliver correct in berlin who knows all the acronyms. what are we seeing from the campaigning in germany? oliver: the spd, the incumbent really taking his opportunity in the parliament to talk about what he wants to care about and

what he thinks germany should put into focus. what he is saying is that they should never be a trade-off in germany. investing in security for the country and securing pensions. these should never be trade-offs. that's the big distinction. frederick mertz is more willing to cut parts of the social welfare state. the other point that olaf scholz made, one of the points he's trying to run on, is that he's been a non-escalator in the war with ukraine and russia. he has forbidden the delivery of long-range missiles. he thinks this will be a winning argument. frederick marks took a different tack. take a listen to him. >> you are dividing the country. mr. chancellor, you are the one responsible for this controversy and for this division in germany. this is simply no way to govern the country.

oliver: saying that he will not be supporting a lot of legislation. we will get a paralysis as far as things getting done by government over the next few months. what could be another few last months in an economy that needs some action. tom: they need to release the brake. the debt break. that seems to be at the heart of this. oliver: 100%. that's why the government collapsed. schulz has been talking about this for some time. the economy minister likens it to boxing with your hands tied behind your back. not just because of the difficulty but because of other countries that financing their issues. germany is in a strong fiscal position. the german constitution, article 115. it's in the constitution that you can't borrow over 0.35% of gdp. but we got yesterday, beginning to talk about the ability to change the debt break and the openness to do it. yesterday, he said it can be reformed.

why and for what purpose? is there not a sort of irony that we had a sort of left-leaning socialist government run by olaf scholz that fell apart over the debt break only to elect the right-leaning conservative government that may reform it? tom: we love the irony. i love the constitution. it is much smaller than i expected. tiny and compact. oliver: i never leave home without it. [laughter] tom: i would expect not. thank you very much indeed. how this campaign is shaping up in germany. as you head towards those elections in february. let's recap a major german corporate then. siemens with the threads globally when it comes to industrial companies. a positive set of numbers on the top line for siemens. 2025 comparable revenue increasing between 3% and 7% at the top end. the estimates have been that the 2025 comparable revenue.

at the top end of that. net income came in in line with the estimates at 1.9% -- 1.9 billion euros. in terms of orders in the fourth quarter. 22.9 billion euros. the estimates have been 22.38 billion euros. oliver kruk caught up with the ceo of siemens and talk to him about the number of issues facing this company. really interesting in terms of exposure to china as well. whether the ceo sees an impact of some of that fiscal stimulus that's been put into the system by chinese officials. take a listen to the siemens yell. >> our revenue from the united states contributes to 24%. from china, it's at the 13% level. however, if you take the global

industrial gdp, 30% comes from china. there's no way around when it comes to industrial markets. we have to look into china. we have a very strong footprint there. we have a very strong position there. it is of utmost importance for us that the chinese market is picking up. we do know that the government is looking into high-tech manufacturing. once the market is getting more momentum, they want to invest in automation and is a list nation. we are there to pick up the momentum. still what holds this market back is the contraction in the real estate sector. this was addressed by the government. a lot of that sits on dax and provinces and how they address it. they want to get a refreshing of this market which is very good. the other one is that the private consumption is not really picking up. we have extremely high savings rates. this reflects the confidence of the people in the future.

if that starts moving, then you will see the market picking up quickly area tom: we have our own political crisis in germany which obviously has been dominating the attention within not just the political space but also industry. what do you need to see from this next government in order to bring back this economy? if you were the chancellor, what would be your number one course of action to bring the economy back? >> so, ok. there's a lot of work to do. number one, i believe we need investment in infrastructure. our mobility infrastructure is outdated. we need to invest there. we have to manage our energy transition quickly because we can't afford high energy prices going forward. that would be the second point. the investment in the grid, distribution grid will be part of a very high cost. i would rethink about how much expense you really need in order

to carry forward. we need to really reduce our energy prices going forward. our education system, this is our future. germany lives from innovation. the next one would be immigration. we do need a proper, good immigration. we need to bring people into work. i would do the same as what i would do with other companies. yes, we have to invest. at the same time, we need to look where we can save money. that's not free. therefore, the balance of looking and where we can spend last -- less, that is something we have to do. bring people into work. oliver: yeah. on that point, you were talking about, companies take on debt.

do you think it's time for the german government to think about taking on debt and looking at reforming the debt break? oliver: whether you in -- >> whether you increase your debt or leverage private money, that's an answer the government has to give. i believe that there's no way around. there's no way around but to invest. i didn't talk about the defense investment needed. there's a lot of things we need to do. at the same time, we have a high inflow from tax and we have to spend our money wisely. at the end of the day, if we pay people for not working, that's not a good idea either. there has to be a movement there in order to go forward. because we do need growth. if you think about a half of a percentage more growth which we need in germany, that would solve the budget problem easily because of the tax inflow. tom: ok.

the ceo of siemens speaking to oliver crick. there's plenty more coming up. stay with us. this is bloomberg. ♪

tom: welcome back. banko bpm will be among the buyers of -- that is being sold by italy's government. the italian state said it is set up -- selling a 7% in the lender , the latest app in an exhaustive restructuring drive. there's a lot more coming up. did you -- disney earnings. what's happening in bitcoin. stay with us. this is bloomberg. ♪

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guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one. tom: welcome back to bloomberg daybreak: europe.

prices out of the u.s. today. let's focus on what happened with consumer prices. top line as they match the estimates. for those looking for inflation concerns, on a three-month basis annualized, you are looking at a print for the highest level since april out of the u.s.. 3.6%. that's a reminder of the complexities of the next steps with the federal reserve. officials talking about their lack of certainty. jay powell will be speaking later today. the uncertainty is there. will jay powell give clarity? markets have increased bets that you will get another cut in december. the odds around 80% the last time i checked. the projected forward look on inflation looks a little murkier from here. let's have a look at bitcoin. ties into yields as well. for the moment, expectations around trump. cross above $90,000. $100,000 target is to be laughed off. now it doesn't look that far the

way -- have -- that far away. bitcoin can illustrate the overboard nature of cryptocurrency right now. it's at those kind of levels you saw in february. the sec confirmed and gave the green light to some of those spot etf's. you can find that on the terminal. a question for those who are reaching for further gains for the cryptocurrency. big earnings story coming out of the entertainment space. disney is premarket later today. expected deceit decent numbers. studios expected deceit decent games. parts could be a disappointment but they have flagged that anyway. that's part of the mix. streaming, you could get a stricken's -- second straight quarter. there's also a question about eo succession planning. bob iger because comeback as the

head of disney. that will be important to gauge the health of the u.s. consumer and also those in china as well. this is worth noting. the hstech index in hong kong, home to many of those big chinese tech firms. off 20% since the highs of october. part of that is down to strong dollar. part of that is down to concerns about what an incoming trump administration will do in terms of further restrictions. part of it is down to a lack of enthusiasm around the stimulus that's come through. the piecemeal nature of it out of chinese authorities. later today, the jp morgan ceo joins lisa abramowicz for a fireside chat. up next, the opening tr this is bloomberg. ♪

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>> good morning from london. here's what you need to know. republicans win