>> happy friday everyone. traders trim bets on a fed cut next month after jay powell says there's no hurry to lower rates with the u.s. economy in

remarkably good shape. president-elect donald trump takes vaccine skeptic robert f kennedy junior to lead the health department. there's no room for -- jamie dimon. asian equities gained with signs that china stimulus efforts are bearing fruit. retail sales grow at the strongest pace in eight months. ♪ let's check in on these markets. the asian second -- session broadly positive. the data when it comes to retail sales out of the second largest economy on the planet. retail sales data suggesting that maybe that economy is starting to bottom out. european futures pointing to losses of five cans of 1% after

the rally of more than 1% yesterday for european stocks. you are set at this point for a third straight week of losses for european equities. ftse 100 futures down by three tents of 1%. oil will be a drag there with prices falling once again in the session today. s&p futures pointing lower by 23 points. some modest losses yesterday. nasdaq futures pointing down by 121 points. u.s. stocks fell's extensive 1% yesterday. some of that tied to what we heard from jay powell. let's have a look cross asset with a focus on the u.s. to year. yields up phase -- eight basis points. those comments seen as relatively hawkish from jay powell. markets pricing in just two additional cuts from this by june of next year. 435 on the two-year. the pound in focus. gdp data out of the u.k.. watch for that. 126 on the pound right now.

bitcoin giving up some of its gains. a bit of rally fatigue kicking in for the cryptocurrency. currently down five tents of 1%. rent looking to end the week lower, falling 1% on concerns about a glut in oil inventory. 7180 on brent. let's get to the comments on jay powell. the recent performance of the u.s. economy has been good, giving the fed chair room to lower rates at a powerful pace. >> with labor market conditions in rough balance and inflation expectations well anchored, i expect inflation to come down towards our 2% objective on a bumpy path. we are confident that with an appropriate recalibration of our policy stance, strength in the economy and labor market can be maintained with inflation moving down to 2%. we see the risks to achieving our employment and inflation goals as being roughly in balance. we are attentive to the risks of

both sides. the economy is not sending signals that we need to be in a hurry to lower rates. the strength we are currently seeking in the economy gives us the ability to approach our decisions carefully. ultimately, the path of the policy rate will depend on how the incoming data evolves. tom: for more reaction and context, let's bring in our markets reporter. is this a slightly more hawkish jay powell? >> it certainly is. he solidly open the door to a fed pause as soon as december. he talked openly about that they are in no hurry. going slower seems like a smart thing to do. this is in the guise of the labor market holding up better than expected. inflation coming in higher-than-expected.

let's flip on to talk about trades. we have convert -- completely reverse the pope -- posey b.i. rally. we brought those doubts back again. we are looking at a 50-50 chance of that december rate cut in just a few weeks time. the equity market is not really liking these more hawkish words from pal. s&p futures, nasdaq futures, euro stocks futures in the red after these hawkish words last night. tom: the betting and trading and pricing around that december decision has been all over the shop this week. down to 50% chance of a cut by december. fed officials have tried to make the case that the incoming trump administration will impact what they do which is clearly a fallacy. what are we hearing in terms of

the fed reaction to the potential policy reaction and agenda of this incoming trump administration? >> he got asked a few questions on this. one thing that he did talk about when it comes to the fiscal spending and the tax cuts that the trump administration has to put through. he noted that it will take a year for legislation to pass. we could be waiting until 2026 or 2027. clearly they see a lag into a growth impulse from the pro fiscal spending policy from the trump administration. he also talked about tariffs, saying it's not obvious there effect on growth. his focus was squarely on growth, not on an inflation impulse from the tariffs. lastly, immigration. he said that a shrinking of the labor market from a deportation of migrants would be negative on growth. we've seen the opposite in just the last year. he commented that the labor market had more people in it

because of positive immigration. that could be undone if trump does go ahead and have a more hawkish immigration policy and deport migrants. interesting to see fed powell weighing in on these things. his first three christians -- questions were on federal reserve independence. he said that the federal reserve acts in the interest of the people, not one specific party. tom: we will continue to parse the comments from fed officials in response to what they expect from this incoming trump administration. thank you for the context. big day once again for how the markets are pricing in expectations around the next moves. in a controversial pick to say the least, the u.s. president-elect has tapped robert f. kennedy, jr., a prominent vaccine skeptic, to run the department of health and human services. let's bring in bloomberg's opening trade enter -- anchor.

on some levels, this is not surprising given the proximity of trump to jfk. how dangerous is this potentially for the health of americans? >> this could be very dangerous. some of the ideas rfk junior has put out with vaccines. also his recent comments on things like fluoride in drinking water. just for international audience, american water has an extra amount of fluoride in it. that helps make sure it's healthy drinking water and also helps prevent some of the dental decay. it is something that has been proven and endorsed by the government for almost 100 years when it comes to tackling some of the clean water issues in the united states. rfk junior has specifically talked about rolling those measures back. it's also crucial that he is a part of the very celebrated political dynasty of the kennedys. all of which had come out and supported the bid for joe biden

and then kamala harris and his uncle was the very celebrated jfk. his own dad ran under the democratic party. this is something that has not been endorsed by the family and is therefore a controversial pick in addition to the ideas he's pitching. tom: we get a lot of stick for our bad teeth. four years down the line, let's see if the tables are turned. the health and dental health of americans. switching focus. jamie dimon not being picked. not a huge surprise. a major figure within the world of finance and often speculated to have a role in politics. nobody picked him for the new administration. trump is not considering him. jamie dimon responded while speaking to us at the apex eeo summit in peru. take a listen. >> i wish the president well. it's a nice note.

i want to tell the president, i haven't had a boss for 25 years. i'm not about ready to start. tom: great response from jamie dimon. what do we make of this? >> jamie dimon has been very quiet and neutral on the sidelines of the campaign. his wife judy has been reported by the new york times to be knocking doors for harris on the campaign trail. in that interview, he talked about the fact that the top administration could regulate wall street. he respects jamie dimon greatly but will not be invited to be a part of the trump administration. celebrates him for his outstanding service to our country. we will see how that all plays out. tom: china economy showing signs

of stabilization. the weed by better-than-expected retail sales. let's get more from our china correspondent. break down the data for us. >> quite a mixed picture. a big beat of 1% above estimates coming in at 4.8%. industrial production slightly missing estimates, coming out of 5.3% estimate. property investment also extending declines. i want to focus on the retail sales number. in october, we have the golden week holiday. three quarters of a billion domestic trips were made. you also have the longest ever double 11 promotion. at least a week longer than the previous year. a big boost to home appliance and electronics sales because of

the governments equipment upgrading program. the question is really, does this signal an improvement in consumption sentiment? or is it a one-off boost because of the promotional time? industrial production missing estimates although bank of america saying they consider anything above 5% as pretty strong, resilient there. add to that the pmi number going into above 50% for the first time in many months. perhaps a very fragile recovery we are seeing their that could possibly also be derailed by trump's policies. that is something to continue to monitor. i think property investment, that was something that was a bit of a disappointment to me. we had that series of measures that were introduced over the past couple months including the lowering of down payment ratios, easing homebuying. that hasn't really showed up in the data. even though we got preliminary data from the top 100 developers showing that home sales did flip

from negative territory to positive territory for the first time in 16 months, that doesn't really tally with official data showing home sales still down by 22%. quite it economy there which suggests that this recovery is very lopsided. perhaps supporting some of the state developers more than others. of course, home prices down 0.5%. the slower pace of the come -- decline compared to the previous month. still very far from positive territory. people are not going to buy homes if they believe home prices are continuing to fall. tom: indeed. important wrap of what looks like a mixed picture when it comes to china's data. maybe questions still over the property sector. thank you very much indeed. to the u.k. now. the bank of england governor has used his mansion house address to warn against raising tariffs in response to u.s. led protectionism. advocating for free trade and

openness. this amid fears that president-elect donald trump will kick off a global trade war when he enters the white house. >> the picture is clouded by the impact of geopolitical shocks and broader fragmentation in the world economy. i'm an old-fashioned free-trade red heart. i think it's a british characteristic. i like to think it is. the point is this. amidst the important needs and the threats to economic and certain -- uncertainty, let's remember openness. it's an important determinants of productivity. tom: ok. the boe governor talking about the need for open trade. let's bring in this point. leo kerr chopper. what we heard from rachel reese, the chancellor. her message to the importance of the financial sector in the city of london. what were your key takeaways from the chancellor's messaging to the financial sector? >> yes.

good morning. the key message was the chancellor singing, the crackdown on u.k. banks after the financial crisis has gone too far. this has been part of the sentiment in the city over the past couple years. obviously you have the government nearing its exit from the former royal bank of. you also have the bonus cap being abandoned. now the announcement, the key take away yesterday was the chancellor singing she plans to tweak the managers and certification regime which holds executives to account for misconduct that happens under their watch. he wants to treat -- tweak the rules to make them less costly. that was quite a key announcement actually. she also wants to modernize the so-called force. it doesn't sound exciting but it's actually key ahead of the investigation by the sca. you ask if u.s. investors are

concerned. another key announcement there. she said the government might publish a competitive strategy as early as next year. that might lead to a broader shakeup of regulators. definitely something to watch year. tom: thank you very much indeed on the language, this gentleman -- sentiment in the offing. an important time when we look at that auto financing story that seems to be expanding in terms of its scope. thank you very much. u.s. stocks taking a breather. what's next for the s&p and what risks lie ahead? we get the view from the head of investment strategy at robinhood financial. a new 150 million euro share buyback program. we speak with the ceo of the dutch life insurance company later in the program. this is bloomberg. ♪

tom: u.s. stocks have surged since donald trump's victory with the s&p 500 briefly topping 6000. our next guest thinks there's a 20% chance of it hitting between 6006 on the -- 6000 and 6100. we are now in that territory. i'm joined by the head of investment strategy at robinhood financial. thank you for joining us in the studio. the bull market in u.s. stocks is taking a breather in the last few days. the next steps for this s&p 500? do you upgrade your targets as you push into 2025? >> we are knocking on the door. i thought there was a 20% chance. i thought the election could be

the thing that pushes it higher depending on what the outcomes were. i think we could get to 6300 and the next three to six months. that being said, i'm a bit more positive on the mid-cap space for example. tom: what takes you to mid-caps? what are the catalysts? why are you not yet seeing enough evidence to want to push further into small caps? >> it's a couple of things. mid-caps right now have a better valuation than large caps. a little higher quality than small caps. small caps, i had a call on it back on june. it has rally quite a bit post election. if i think about some of the other policies that may be coming, they could be inflationary. that's not necessarily a good thing for small caps. small caps tend to have 20% more leverage on average than large cap names. if you are in a higher for longer interest rate environment that's more guaranteed, that

doesn't bode well for a higher amount of leverage. tom: does the bond market selloff derail that thesis? what level of yields would be a challenge? >> for the whole market, if we start moving materially above 5% , maybe 5.5% or higher which is possible. if the bond vigilantes come out. tom: is 2025 the year of the bond vigilante? can they afford all this issuance? >> if you look back in history,, that's where we actually are as the -- as of the end of the year. the deficit has been a growing issue in a post-covid world. we are at 1.8 trillion. is very hard to see where we can make those cuts.

some of the policies that are being talked about like tariffs, if you look at the last time tariffs were put into place, i looked at how much we made in 2023, it was $80 billion. small compared to a $1.8 trillion deficit. i think there has to be some real hard look at our own budgets to really think about the long-term. tom: it doesn't seem like either party will be taking that issue seriously for now. bond vigilantes will have to force the issue. how does area -- erupted into your portfolio? >> we did like some of the larger cap tech names that are in europe. generally speaking, we have been staying away from it because we look for u.s. investors. the dollar has been so strong that it's been hard to be super positive on europe. tom: where are you finding margin at this point? margin resilience. >> there's been margin

resilience in the tech space. and actually, that's not true. what i was going to say is that we haven't seen a lot of margin resilience. that's why we are in the poor soft landing since 1960. if margin compression is allowed, you have a lot of research and development. that fuels long-term growth. no matter what happens with policies, that's a place that you seen capex house grown at a greater amount than sales growth for the last couple years. tom: thank you very much indeed for joining us bright and early around the set. a call there on mid-caps in the u.s.. a cautionary note around the potential take up in yields stateside as we look into 2025. coming up, one week down when it comes to the cop 29 summit. we look at how much progress is actually being made if any of the climate conference. that's next. this is bloomberg.

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tom: welcome back. this year's cop 29 summit has been overshadowed by donald trump reelection in the u.s.. here with more about what to expect from the negotiations and that petro state is an associate in the bloomberg nes energy economics team. well-placed to give us the context. has there been any achievement whatsoever? anything of significance? >> our expectations are published on a scorecard where we rate different categories, how successful do we think each meeting can be. we do this for different cops. this year, nine different areas that we think are key if we to -- were to align. where we actually see some progress can be done is defining some targets for power grids for energy storage. creating a carbon market where

nations can trade carbon credits. of course, we need to consider the context in which the summit is taking place. so we have european countries and other developed economies which have concerns because they have constrained budgets. also we have the u.s.. with the trains and administration next year, that brings different risks. next year, the u.s. might leave the climate stage as they did the first time. also, influencing other nations. argentina representatives leaving the cop. this is the kind of things we are looking at now. tom: climate finance, always a thorny subject. where do things stand? >> it is a hot topic this year. the idea is about nations that were responsible for polluting in the past will support the nations less responsible. this has led to pointing fingers into his response but to bring this financing. if we look back, omissions have been coming most from developed economies.

if we look at china, at the u.s., at the u.k., countries from the european union. they are responsible for 58% of emissions since 1950. if we look at china or india, they have increased in the last five decades substantially. bringing the question of, who actually needs to finance emerging economies. tom: excellent context. really appreciate that. really smart analysis from the team throughout cop 29. european leaders on donald trump impacts on their economies. the potential economic hit. this i 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. connectivity is a big part of my boys' lives.

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tom: this is bloomberg daybreak. these are the stories that set your agenda. traders trim bets after jay powell says there is no hurry with the u.s. in remarkably good shape. president elect donald trump pix affecting stash vaccine skeptic robert f. kennedy, jr. to lead the health department. but there's no room for jamie dimon. asian equities gain our bearing fruit. retail sales have grown at the strongest pastes. none of that boosting european futures. reporting lower as things stand. your brace for losses after gains of more than 1% for european stocks yesterday. you are set for a third straight week of losses across the european equity space. ftse 100 down by 36 points, off in the selloff in oil may be pressuring the picture for the

ftse 100 and the oil majors misted. s&p lower after a drop yesterday. nasdaq 100 futures falling 168 points, pointing lower. let's look cross asset, two-year yields crossing on the back of those comments from jay powell up one point. four 34 right now on the u.s. to your yield. in markets pricing and two additional cuts from the fed by june of next year. december is a 50-50 tossup according to market expectations. we wait for gdp data out at 7:00 a.m. u.k. time. bitcoin taking a bit of a breather in terms of the run-up, looking for more detail in terms of what the trumpet ministration might do to support the crypto space. down. brent taking a hit down 1%. set for another week of losses for oil on concerns about a glut in that market, now to the macroeconomic picture with a focus on europe and the impacts of potential tariffs coming from

the u.s.. new forecast from germany say the economy will grow by 0.4% in the next year do to underline problems and cyclical weakness. donald trump threatened tariffs could derail germany's recovery even though germany was looking at a recovery. let's discuss this with senior europe economist at pantheon macroeconomics. thank you for joining us. we have that around a potential 1% of gdp out of germany on tariffs out of the u.s.. has yet to know what those tariffs will look like but a 10% tariff from the u.s. on european imports into the market, what is your modeling suggesting about the potential for economic hits of trump tariffs? >> trump tariffs would raise prices for european goods. the likelihood is that export will go down.

countries like germany who export quite a lot to the u.s. and the u.s. is the most important trade partner for the euro zone as a whole will see a hit to their export market. it will probably affect business sentiment across the board. tom: the business impact sentiment will be there. does the responsibility fall inevitably to the ecb, and will there be some fiscal response from europe to shore up this economy. >> it is likely that the trump administration pushing ahead with tariffs will bring in some response from the european union as a whole. could be the european union retaliates and raises its own tariffs. but is likely that there will be a fiscal response for most european economies because undeniably, donald trump will go and reassert the need for european countries to raise their defense spending and if countries like germany want to remain competitive in the industry, which we know german

industry is in a rut, then it's likely that it will have to spend more on china boosting the industry so fiscal spend will go up. tom: fiscal spend will go up. let's take a listen to mohammed of pimco, now a bloomberg opinion columnists. this us to what he had to say about the challenges of europe. let's take a listen. >> if you look at the good, bad and the ugly of the global economy, europe is in the ugly. cyclically that challenge, secularly that challenge. there is no definitive leadership in the two countries where you need it most, germany and france. tom: europe is in the ugly. he has a point. when it comes to the elections in germany, do you get a less ugly german government response in terms of that economy. >> at this point there's a grand

coalition between it spd, cdu or -- is the most likely outcome from the election on february 20 third. because the government is unlikely to include the fdp end lender which we know is the reason why the coalition has fallen off the rails. it does look like there is an open door to more fiscal support in germany. assuming that the cdu and csu come on board to spend more, which we think that they will do because of the likelihood that the u.s. election will boost for that and because they want more votes, more fiscal spending gets you more votes. the response will likely be more favorable towards more fiscal spending. tom: more fiscal spending is your message is the politics in europe adjust. is that accompanied by greater monetary policy easing from the ecb? markets are pricing and 140 basis points of cuts between now

and october of next year, does the ecb go that far, does it need to go further and faster to support the economy? >> we do not think they will go as far as market suggests. because inflation undershot in september, the ecb is likely to push down the forecast come december and this downgrade will likely push them to cut rates by 25 basis points this year, taking it possibly to 3% by year end. but then we only look for two more cuts next year and the reason is because we expect inflation to be biased towards or above the ecb's 2% target, especially in the coming months towards 2026 particularly. that will mean they will go cautiously and will probably hold back. the neutral rate is probably higher than markets expect. tom: that debate is very live. it is a slightly less dovish fed, is that a constraint on how far the ecb can go?

>> the ecb will be unfazed by lower rate cuts across the atlantic. president christine lagarde has made it clear in the past. she said the ecb is data dependent and not fed dependent. tom: and you believe that? >> we do. the way the data is coming and it's unlikely because we already expected less cuts than markets. it's probably like what has happened in the past and across the atlantic probably supports it more so. tom: i wonder if you have a view on the euro. 105 right now. some you get to parity with the dollar in the near term. given that you expect a relatively more constrained ecb, more constrained than the markets are expecting, where you see euro-dollar next year? >> we see the euro-dollar ending the year around the current level. the way it has fallen so far means that markets are pricing in the likelihood the trump administration will push through with higher tariffs. a small amount of tariffs, so

probably 10% to 20%, nothing more major. the ones tariffs to hit, we think that there will be more pressure on the euro so it will probably go down .1, .102 by the first quarter. tom: close to parity is where euro gets of tariffs come from the trump administration? >> expectations of more fiscal stimulus and the ecb not going as far as the markets are expecting. thank you very much for joining us in the studio this friday. scenery euro economist. from german politics and the board of eurozone to what's happening in france. france prime minister said he may have to trigger a clause in the constitution and bypass a vote in parliament to get the budget approved. they made the comments in a newspaper interview. lawmakers rejected the budget on tuesday, sending the debate on reducing france's ballooning deficit to the senate. jp morgan ceo jamie dimon says

companies will be more aggressive in pursuing acquisitions after donald trump's victory. he spoke to bloomberg at the apex ceo summit about how regulations have previously stifled deal activity. >> because they have the senate, the house on the presidency, they have more ability to do things like that. last time around president trump said regulation wanted to ow and i said one in five out. i think he could do that again. the banking industry, whether you voted for trump or joe biden, a lot of bankers were dancing in the street because they've had success of years and years of regulations. a lot of which stymied credit. you could have kept the banks equally safe but had them to more credit. just to give you an example, the average bank in america, the number used to have 100,000 deposits of 100,000 in loans and now at $65 of loans. if that's what you want, if for

some reason they think they're geniuses and that's the best way to run the banking, then so be it. a lot of things ended in that answer but they didn't know that would be the outcome. you could talk to any industry and they will give you examples of regulation that could be reduced to make it easier for them to do business while keeping the country safe, while keeping the air clean, making sure there is the job done, etc. >> do you think if there is less regulation that there will be an even steeper competition with banks getting business from private investment firms? jamie: yeah, i'm not against private credit and it has pros and cons. i'm always in favor of competition. but part of the reason they are dancing the street, which they said publicly, these to get mad at me, at half the capital, no social requirements, no aml, no

bsa, no fiduciary, no reporting to the government, no insurance, no liquidity. it's a huge disadvantage, so i think it will make banks get back some of the business. i think it would be more important to regional banks and jp morgan. >> there's also a question of whether it's banking mergers and acquisitions or more broadly of whether there will be a more amenable administration to tieups. are you seeing from conversations in the past seven days with companies that they are looking to expand their m&a pipeline to start putting that together? jamie: absolutely, a lot of m&a was stymied by the fact that sometimes you can't get through the courts, but it takes two years. it takes three years. we have seen this happen in one of these deals took three years. it takes three years to get it done. you've done a deal, it's binding, you have enclosed a but now you will run the company. you can't get synergies, you

will lose people. you want to work with, technology. a lot of companies are looking much more aggressively acquisitions and deployment of capital and they should. tom: jp morgan ceo jamie dimon speaking with lisa at the apex ceo summit. coming up we speak with the ceo of a garden on the life insurance companies latest earnings as they announce a new 150 million euros share buyback program. this is bloomberg. ♪

tom: this is the dutch pensions

and the insurance company reported lower adjusted operating capital generation for the third quarter. aegon ceo joins me now. thanks for joining me, talk to us about the bible black -- buyback plans. 150 million euros, what is it signal? is the more you can do to return more cash to shareholders? >> good morning, tom. what it signals is capital strength. if i look at the update of the markets today, we are coming in with an operating capital general 336 million euro, which is strong. as a result we've upgraded our guidance for the full year to 1.2 billion of operating capital generation. they've also been transforming the company over the last years and as a result, the businesses operating much better. there's profitable growth and we are managing the capital of closed blocks of business very tightly. as a result, our ability to

generate capital has increased quite a bit. we've also put together a dutch business with another listed company last year, asr, then we started the buyback program of one point 5 billion, which we have completed at the course of this year, because the company had a lot of capital strength, we launched 200 million buyback. now today another 150 million. and that's all the proof testaments to the fact that we are able to profitably grow the business tom: investors can expect more to shareholders as that capital increases? >> we aim to grow. we aim to grow profitably so if we can use the cash capital we are creating and we could use that for accelerating a growth profile and good returns in the business, or if we can find value opportunities, we will

surely look at that as well, but if we have cash in excess of what we need, we regularly review that and we cannot invest it at good returns in the business or other value creating opportunities, that we have a clear strategy to bring it back to stockholders over time. tom: what's the outlook for the business looking like as you look into 2025, which parts of the business do you think outperforming? >> we have seen continued strength, for instance, the asset management business on third-party flows. we've seen it for third quarters in a row in this quarter was no exception. we are growing our sales force in the u.s. quite substantially with 19% year on year to 82,000 agents and on the back of that we aim to grow the volume of our business in the u.s.. a retirement business in the u.k. is doing very well, showing a lot of strength and is now the top three of the winning new business in retirement.

ellie also believe that after some weaker times that our business can continue to grow and that also the business and the other markets in our international business in spain and portugal and also china will continue to grow as well. we believe that we have a number of areas and product lines where we believe we are well-positioned to continue profitable growth path. in other product lines that we have close to do business, we aim to do it well. tom: in the first half of the year you recorded that charge higher than the expected charge on a pickup of mortality. essentially, fright -- quite frankly, more people died after covid. are you still seeing elevated mortality as a consequence of covid, does that continue? >> we have adjusted our assumptions at the second half of the year because we noticed that in older age cohorts

post-covid, unfortunately we saw more coming through. since we have adjusted it, we have been able -- we had to take a charge, but we also gave immediate guidance that we expect that the operating result to increase moving forward from that charge that we took. indeed it's one of the elements you can see in our operating capital generation which this quarter came in quite strong. tom: how do you expect the trump administration impact your business, is that a positive or a challenge? lexus we do what? investigate the capital back into the business? tom: no, what you thought about the impacts of the trump administration on that important u.s. business for you, will that be a catalyst for more growth or a challenge for the business? >> i think it's too early to

tell. we are weak out of the election results, president trump has not been inaugurated yet. he is now constituting his administration and having his nominees ready. it's really too early to tell. but in the u.s. we have a business transamerica, which has been around since 1909. we have worked with democratic administrations, republican administrations, so we aim to work very constructively with the trump administration, but too early to tell. tom: from the u.s. to the u.k., we heard from the chancellor. rachel reeves speaking about regulators being overburdening the financial sector. i want to take a listen to rachel reeves and get a response. rachel: it was right that successive governments made regulatory changes at the the global financial crisis. to ensure that regulation cap pace with the global economy of the time. but it is important that we learn the lesson of the past. these changes have resulted in a

system which sought to eliminate risk-taking. that has gone too far. and in places it has had unintended consequences that we must now address. tom: do you expect to have a more friendly regulatory regime and do you welcome the changes around mega funds and pensions year? >> first of all, i agree with the chancellor that it's very important that we remain very balanced with effective and good regulation that keeps the system safe and operates in the interest of clients. i think regulators in the industry are aligned. i do also agree with her that the regulations of gone too far and as a result, not fully utilized the full strength that the industry can bring for instance, long-term savings and allowing customers to do proper savings and being able to spread

their investor risking and investor portfolios. therefore, i agree with the chancellor. she also said yesterday evening that she launched the british growth partnership and an egg on has announced that we are going to be a cornerstone investor in that effort. tom: thank you very much for your time today on the back of the earnings in the announcement of 150 billion buyback. plenty more coming up. stay with us. this is bloomberg. ♪

>> we could probably trade 6100. we are right there. could we get higher than that in the near term, it will be hard, but we are marching higher, finally after two years we are finally start to see a broadening out in the broader

economy and that translates into better stock performance for the average stocks. tom: morgan stanley chief u.s. equity strategist mike wilson talking about the strength of the u.s. economy. that was something reiterated by jay powell yesterday. he drew a line under that and that for some in the markets was a bit of a whole case -- talk with 80% chance of a december cut yesterday before those comments now or at a toss up. 50% chance. this is how the markets and those trading bets have adjusted from those fed officials, no rush on the need to cut further. in fact, markets are pricing in just two additional cuts from the federal reserve between now and june and not seeing step 4% on the great until about september over next year. let's put the board and have a look at what's happening over the preview of u.s. retail services. the strength of the u.s. consumer has been there and that will be a factor in how the fed decides about its next steps. we have retail sales out later today.

expected the economist estimates are that you will see a calling to 0.3%. bloomberg economics says it will be a decent number and they expect car sales discounts as well to drive and continue to put strength under the retail sales. that data dropping 1:30 p.m. u.k. time and we will see if that moves the needle on pricing around the fed. be sure to catch up on bloomberg's new weekend edition. we will give you a collection of ideas, essays, stories to explore the fascinating places where finance life and culture meet -- finance, life, and culture meet. the opening trade is next. 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 dad: to charge yohey boss. you okay?

son: i said i'm fine. ♪ dad: you can talk to me. son: it's been really, really hard for me.

anna: we are an hour away from the opening trade. here's what you need to know. traders trimmed bets on a december's perfect cut