tom: these are the stories the site your agenda. bloomberg has learned the justice department is looking to force google to sell off its

chrome browser and what would be a historic crackdown on one of the world's biggest tech companies. and donald trump's team will consider pairing kevin walsh in the treasury role alongside scott best and at the national economic council. and 45 democracy activists in hong kong are imprisoned for up to 10 years under a china imposed security law the u.s. because the trial -- security law. the u.s. calls it politically motivated. you can sense a semblance of modest relief in these markets with a softer dollar and yields that fell around three basis points yesterday, giving some breathing room to equities.

it's been a solid session in asia broadly with european futures pointing to gains of .3% after flatlining yesterday. you saw some gains coming through overnight. the nasdaq was propelled by the likes of tesla. ftse 100 futures pointing to gains of .4%. s&p munis in positive territory and nasdaq futures looking to build on the gains yesterday by just shy of .2%. let's flip the board and lacrosse asset because part of the relief is what's happening with the trading market with some money moving yesterday. 4.4% on the 10-year yield. you crossed 4.5% on friday. 4.4% now so some more comfort in the markets. euro-dollar at 1.05. bitcoin in focus, near record highs again, tying into some of

the machinations around the incoming trump administration. brent crude $73 a barrel, currently up .2% and we keep an eye on that given -- given the tensions within the middle east. let's cross over to singapore. avril hong standing by with a check on the asian markets. avril: stocks higher today, catching that u.s. tailwind thanks to lower yields and the greenback softness and we are seeing it actually outperforming but note that overall it was coming off a bad week. those steep losses just a week ago. what's underperforming for another session are the meme stocks declining for the fourth session and it's those concerns about domestic growth and whether chinese authorities will frontload enough stimulus next year to buffer from trump's

tariffs and they don't seem terribly confident. and we have some of these brokerage chiefs talking about the need for greater transparency and the easier movement of capital to restore investor confidence because some of those rules applied to when you are looking at the trading drivers for the currency and today we are seeing the renminbis looking soft on the day where most of asian currencies are climbing against the greenback and traders seem to be ok with hanging on to their short positions. and today the yen is reversing some weakness from a day ago, getting a boost from the japanese finance chief, who spoke about how they don't want to see these sharp moves. just a day ago, ueda was no help to the yen. take a closer look at this chart, which will show you how on dollar yen there seems to be a clear path towards .160 for

aggressive traders at least. they are seeing the climb higher potentially. you think about how in japan the domestic political backdrop is tricky for the boj in terms of future rate hikes but also think about the path of the greenback and how it's in an environment where it's difficult to see the dollar not climbing next year given what's expected from the fed and also concerns surrounding the deficit and treasury supply. >> thank you very much. 1.6% possibly the path higher. and some other calls suggesting the yen could go higher so the debate remains in the bank of japan will be part of that. nestlé's stock is down 15% year to date. they say medium-term organic growth at point -- at 4% growth. medium-term organic growth at .4% plus.

the maker of the kit kat bar and coffee capsules a central touch point on the health of the consumer. and underlying operation profits of 17% plus. back to u.s. politics and how that's playing out because bloomberg understands donald trump's team is considering pairing former fed governor kevin walsh in the treasury secretary wall with scott besson as the director of the white house national economic council. let's bring in valerie. what do we know as we continue to wait with bated breath as to the potential appointment of the next treasury secretary? sources are telling bloomberg let nick is out of the race and what we have heard more recently is kevin walsh is favored for the position and he will be moved over to the national economic council. and it is still an influential seat, maybe not as much as the

treasury secretary currently. that position was taken by lael brainard. they left ahead -- the fed to work with the biden administration but walsh is a former fed governor and was also rumored to be picked for the fed chair in 2017 but trump was swayed to go for powell instead, a move he has said he regrets and perhaps he could be warmed up to being powell's replacement in 2006 but what we have heard recently is he's been critical of the fed's cut in december, saying they might have declared victory on inflation too early but questions remain on how tough you will be on tariffs. in 2011 he wrote an op-ed with jeb bush in the wall street journal warning against protectionism measures so

perhaps maybe not as tough on tariffs or at least he was not back in 2011 but maybe he will be swayed now under trump's administration. >> that if he takes more of the trump view. give us the market interpretation on what's unfolding? how much of a focus is this for markets? it is a focus for the market moving forward. we have been driven by some different elements when it comes to the price action in the treasury market and we are again seeing strong dip-buying. yesterday we had the 30 year yield had the highest it's been since the end of may and aggressively rally and saw some big blocks traded in the futures market showing again the second day in a row we have seen some big dip-buying. we have also seen that in gold and this is a thing to note because the dollar rally has taken off with some steam and has allowed gold to bounce from

the recent lows of nearly 2.5%. gold since the election has slid near 8%, a lot of that to do with the dollar strength and yields didn't in gold's all-time highs. and we also saw a reversal in the equity market yesterday. nasdaq specifically ended its losing streak and has now taken that in the last two sessions off the table. and we have heard big equity calls from mike wilson and from goldman sachs talking about upside for the equity market when it comes to dignity -- comes to 2025 and both have their price target on the s&p at 65,000 for 2025. tom: thank you very much indeed. now a major corporate story unfolding around alphabet. shares lower after hours after bloomberg reported the doj will push google to sell its chrome browser to break up its search monopoly. let's bring in kriti gupta >> we

know this could be one of history's biggest antitrust cases. what's crucial is the justice department has decided to ask the judge who earlier this year had ruled that google illegally monopolized the search market with some strong evidence to begin with but what's changing is how do you remedy it and that is where the issue comes up that they may be able to peel off. here's why this is important when it comes to google and alphabet broadly. chrome is the largest internet browser in the world. 61% of traffic goes to chrome and is competing with the likes of safari and firefox but this is the main way google is able to not only detect who is searching what but also collected data and give them targeted access.

that's the crux of the case. the concern is what this may do in terms of raking out google given so much of their revenue comes as a function of this platform. we will see if that comes through. right now it is just a recommendation when it comes to actually pulling back on data licensing. it is just a recommendation. but some pretty strong words coming from the vice president. take a listen to what she had to say. the doj is continuing to push a radical agenda that goes far beyond the legal issues in this case. the government putting its thumb on the scale in ways that would harm consumers of it -- an american technological leadership at precisely the moment -- it is needed. being tough on tech has been a bipartisan issue for democrats and republicans and we will see if that eases under a new up ministries and.

initiated under trump and he's coming back so we will see whether this progresses and he's looking at april and in august in terms of when this wraps up. kriti gupta, thank you very much indeed on the importance of the alphabet and google story in the last few hours. 10:00 a.m. u.k. time, euro area cpi so inflation data out of the euro area and to what extent it ties into expectations around the ecb expected by market participant's to continue and expectations you get back below 2% by around the second half of next year. and at 12 p.m. u.k. time the u.s. consumer and we will break earnings as well given the size and scope of that business and the touch point across the consumer and we will get canadian cpi as well so the inflation trajectory out of the u.s.'s northern neighbor. a roundup of the stories you

need to know to get your day going on daybreak. terminal subscribers can go to d.a. why bigo for those stories been we are leading on that google and alphabet story. we will be joined by rick mcconnell, ceo of dyna trace and we will be talking ai, automation and more at 6:30 a.m. u.k. time. hong kong has sentenced 45 pro-democracy protesters to jail time, including a 10 year term for a prominent activist. more details next. this is bloomberg. ♪ just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models.

oh, that's so rock roll. it is, right. he gets it. yeah.

♪♪ ♪♪ ♪♪ ♪♪ the black friday sale is now on. visit sandals.com or call 1-800-sandals >> i am very pleased that my foreign secretary and foreign minister met recently and discussed respective concerns,

including human rights and parliamentary sanctions, taiwan, the south china see, and our shared interest in hong kong, and we are upset by reports of his health deteriorating in prison. tom: keir starmer confronting the chinese president on human rights issues with a reference to jail hong kong pro-democracy activist jimmy li. a hong kong court has sentenced a former democracy advocate to 10 years and parens, the longest sentence ever meted out -- years in prison, the longest sentence ever meted out under the chinese security law. minmin low joins us outside the magistrate court. give us the details of the sentences. minmin: it's a rainy, dreary day but not deterring supporters coming out early,

pretty much wrapping around this building as we awaited sentencing, and it was an emotional day for some of them. one of them, the principal organizer of this unofficial primary election that the court deemed as an attempt to undermine the government, is sentenced to 10 years in prison, the longest handed out so far, but it is at the lower end of sentencing guidelines, because the maximum penalty is life in prison for someone deemed a principal offender. another name you might recognize is joshua wong, the face of the 2014 umbrella movement, a former student leader. he was sentenced to 4.6 years in -- to four to six years in jail. the median sentence for these activists is 59 months and it includes the time they have already served while being denied bail because many of them had already been in prison for

about 1000 days by this time. it's being closely watched by citizens of hong kong and the international community. not only were the defenders denied bail but denied a jury trial. they were denied that they were tried by three judges handpicked -- they were tried by three judges who were handpicked. some have questioned the impartiality of the judges. tom: my understanding is they have been picked by beijing backed executives and leaders in hong kong. what does this tell us about hong kong, china, and how the u.s. may respond? minmin: well, beijing has for a long time been saying that the national security law is essential to mean -- to mean -- maintain stability and has urged other countries not to meddle in its internal affairs.

we know the british prime minister raised the issue of china's human rights record. he was barely able to register his concern before the british press were abruptly moved out of the room. that just underscores how sensitive this issue is to china. we know the u.s., for example, has previously said that these trials are politically motivated. i have been calling for the defendants to be released and so it's being closely watched also by the business community because the rule of law, the openness of the city, the independence of the judiciary, these are factors that have been important in -- pillars that have underpinned hong kong status as a global financial hub at a time when they are trying to attract more foreign investment into the city as well. tom: minmin low, thank you very much indeed on that important story in hong kong. plenty more. the ceo of standard chartered and his views on the investability of china coming out.

tom: welcome back to bloomberg daybreak: europe. happy tuesday. the standard chartered ceo says chinese markets are bidding -- beginning to improve. he spoke with bloomberg exclusively at the global investment summit. bill: last year was i would say the reestablishment of hong kong as a real business destination and hub. this year, we are slightly celebratory because hong kong is doing well. the chinese market is beginning to improve. we have seen significant improvement in equity markets. sentiment shifting far from done. we know that. now i would say it is really about getting back to business and growth in hong kong and china. david: the first panel of the day, a who's who effectively there, do you think you have

managed to put a floor underneath both the market, the economy and sentiment? bill: we have made good progress on all fronts. the monetary stimulus stimulated the economy and also put a floor under the property price disaster. there's been a bad recession and property prices and we have not recovered yet. there are some recent signs of recovery. i think they put a floor under it and it was a clear statement that we will not let this get out of control. the recent local government debt swap took another issue off the table, which is that local government finances, and we know a lot of those governments work financed by something they have run close to something that's zero in the property market. that takes a big question off the table as well. there are suggestions there will be further stimulus to get the economy going. we know confidence is still quite low. consumer confidence is low,

international investment confidence is low. there's also some geopolitical stuff going on there. but local and entrepreneur and business confidence for investment is low as well. you would probably need one further jolt to get that engine going. david: what would that be? bill: it could be fiscal stimulus, monetary, social financing, things like that. we will see those kind of programs. we know china is full of animal spirits. we have to get those going again. i'm beginning to feel that in hong kong. china is obviously a superior thing, a tougher ship to turn. david: i can tell the energy is different this time around. this lineup and the location is different as well.

put your banking hat on for me. do you think it's a good idea to bring all that debt back onto the formal balance sheets, whether that's the banking system or the central government? bill: yeah, i do. i think there was a big overhand for two reasons. one, it was unsustainable at the local level. the alternative was some kind of default and forced restructuring, which never builds confidence. second, it was not very transparent. we did not know exactly how much there was. i think this takes one big question off the table. of course, there are lessons to be learned about financing a local operation through property sales or transactions, but this also frees up the local currency, the local balance sheets, for the kind of stimulus program that could be next. a lot of the implementation of any stimulus will happen locally. it will not come from the central government. now they are freed up to get the economy going again. david: there's the since you are getting too that officials have

taken into bigger consideration the private sector and how the market feels about what they are doing. bill: the representation at this form today and similar fora i have been to in china this year, the government is all in in the most fundamental way. it takes time, these confidence rebuilding things, but we have been through it, whether it's europe or the u.s. or japan, we have been through these transitions many times. unfortunately for me, in my life, many times. in almost every case it takes longer to get going and it happens faster than you thought but i think we are in the get going phase right now. tom: bill winters, ceo at standard chartered, talking to david ingalls in hong kong. financial leaders have gathered in hong kong for the global financial leaders investment summit. china's vice premier and the central bank's deputy governor welcomed delegates to the city. >> we are happy to see the hong

kong has made new achievements in economic and social development. in the first three quarters of this year, hong kong has scored an economic growth of 2.6% year on year and positive growth over seven quarters. prices remained stable and employment rate is high. people in hong kong are happy. society is harmonious and prosperous. hong kong is proceeding steadily toward stability and prosperity. >> so many investors here, financial leaders -- with so many investors here, financial leaders, you are welcome to visit the mainland. talk to us. we stand ready to provide easier access so that you can achieve greater returns in the mainland. tom: ok. that event happening of course

as the far from independent judiciary in hong kong hands down lengthy sentences to 45 individuals involved in running elections unofficial -- elections, unofficial elections, and calling for greater democracy in that city as a result of the national security law. those sentences being handed out. let's check in on the markets. optimism across asian markets. across the msci specifically, gains of almost 1%. csi 300, the mainland index scanning .4%. in hong kong, the main index of .6%, and japanese stock scanning .4%. in taiwan, stocks are up 1.3%. drop everything and get some magic of your own during the xfinity black friday sale. xfinity internet customers, our best deals of the year are back! switch to xfinity mobile and get your choice of a free 5g phone,

plus your next unlimited line free for a year. get amazing savings and connect to wifi speeds up to a gig on the go with xfinity mobile. fly don't walk to get our best deals of the year. connect to the world of wicked this holiday, only in theaters november 22nd.

tom: good morning this is bloomberg daybreak: europe. i'm tom mackenzie in london. these are the stories that set your agenda. bloomberg's u.s. justice department is looking to force google to settle its chrome browser and what would be a historic crack down on one of the world's biggest tech companies. donald trump team is said to consider pairing former fed official kevin wash in the treasury secretary role alongside hedge fund manager of scott besson at the national economic council. 40 five democracy activists in hong kong are imprisoned for up to 10 years under a china imposed security law. the u.s. calls the trial politically motivated. let's check in on the markets right now. asia stocks putting in a decent session. they hand off coming through from the u.s. with the nasdaq 100 up by the end of the close. the s&p closing higher by .4 percent.

european futures higher by .3% of a percent after essentially flatlining yesterday. ftse 100 futures getting a lift from commodity prices up. pointing the gains. s&p futures looking to build on the upside of yesterday. just up a 10th of a percent. nasdaq future pointing higher. that's what the board cross asset. u.s. yields can focus. 10-year yields lower. down three basis points, that gave some relief to some of the markets. for 40 is what's been yielded. euro-dollar at 105. bitcoin closing into the record levels, nearly at 92,000 right now. brent, $73 a barrel, more common the oil markets after pop in prices yesterday. up .2%. german chancellor olaf scholz has defended his decision not to give ukraine long range missiles, even as the u.s. has decided to authorize keep to use its weapons to strike inside russia. let's get more from bloomberg's oliver crook standing by with the details.

they are on the global stage but also on the campaign trail heading towards those early 2025 elections. how is he positioning himself at the g20 and how does the ukraine story tie in to his positioning? >> i think the ukraine story is sitting at the center of a number of things, joe biden is in legacy mode. olaf scholz is there in campaign mode and at the center of these things you find ukraine. in the case of biden, you know it has come in the concessions striking the region within russia. this was seen as a step forward for ukrainians. it's something they've been talking about for a long time. a fall short of this blanket permissions to strike within russia that they had liked. for many people who had been watching this and watching what had happened throughout the entire war, which is what happens, biden will concede something and schulz will follow, this is not the case with the missiles. olaf scholz said he will not consent to this, the tourist missiles are further ranged in a lot of the military gear that there is from the americans.

they can go up to more than 500 kilometers, saying he is firmly convinced that many citizens in germany are worried about the security and peace in europe. it has been his conviction not wanting to escalate things in russia, but you can ignore the political dimension at home for olaf scholz where he has on the right, the cdu saying we should be delivering these things, but also fending off the afd on the far left, who have both wanted to withdraw support from ukraine, potentially knotting to that, we should say olaf scholz has said he will be supporting ukraine until the very end and has given more support financially than any nation within europe. you can see the politics playing out may be just a little bit. tom: is this approach by schulz paying off? all of i think that for many of these politicians, over the last couple of weeks there hasn't been a huge amount that has cut through dynamically. i have not seen that happening for schulz. what you see when you look at the polls. we have the bloomberg poll of polls, which we will keep

updated for this long campaign. but if you look at what we see from last week, broadly speaking, the trends are in line. the cd remains at the top at 32%. afd gaining ground, almost 20%. when you see the shifts from what we see from last week to do this week, nothing dramatic. you see your's percentages shift away from the main parties, away from the cdu, away from the greens and towards in the far left. but i think it's interesting, here for schulz at the g20, what he is going to try to get is this long elusive trade deal with latin america. the deal that is very non-popular for one of the neighbors, france, where you have had farmers on the streets. germany is in desperate need of more export markets with the difficulties it's been having in china. a trump presidency potentially endangering the u.s. market is something schulz can deliver but it seems fairly unlikely at this point. tom: we will watch as france grits its teeth and imposes. bloomberg's oliver crook with

the details on olaf scholz positioning ahead of the election and how ukraine ties into it. thank you on the ground for us in berlin. now to the tech space, particularly in europe. funding for european ai startups, while still less than a quarter of the u.s. total, hit a record high this year things to investments building chatbots and self driving cars, including companies like wave based in london. according to report from venture capital firm, ai firms in europe raised $10.7 billion in the year to the end of september, driven by a large financing rounds for france mistrial, and as i mentioned, wave technologies. and as the world becomes increasingly reliant on some of these software applications, performance issues and outages are having far reaching global impacts. they continue to be a risk. join us now is the ceo of a software intelligence company specializing in ai driven all in

one monitoring solution. that's the picture. thank you for joining us. i believe from hawaii. what's the outlook for your business? what other growth drivers as you look into 202025? >> ai is a huge growth driver in it of itself, but the biggest driver is simply the complexity of software. we all need software to execute our lives and businesses need software to run their businesses and it is getting more complicated to run and execute that software effectively than it has been in the past. this is accelerated by the cloud, by ai, and by other trends. and here we focus on enabling these organizations to deliver software that works consistently, perfectly, and we utilize multiple ai techniques to deliver the ai capability. tom: it we had some examples, prominent examples this year, including the likes of the crowdstrike outage that we saw,

snowflake, the data breaches there. to what extent do those stories lead customers to you? are they a catalyst amongst corporations that are concerned about some of these risks? does it drive customer flow to your business? >> it does. since the because the cost of these outages is extraordinary. and, organizations all the way up to the board of directors, two executive teams, they need to be managing these outages proactively to make sure that these outages don't occur wherever they can avoid them, and where they do, that they minimize impact. and we facilitate during that by using ai capabilities and techniques. to process billions of interconnected data points in a logical way in an automated way. it's simply impossible to do this it manually in a cloud-based world. it is this notion of automation

and ai techniques put together that enables us to complete the operations we complete for our customers. tom: as we think about the incoming trump administration and potential new friction points or additional friction points geopolitically between the u.s. and some of its partners, how are you thinking about the resilience of u.s. corporate's to some of these cyber risks? what is the gap that needs to be closed at this point? >> there's always going to be cyber risk especially with nationstates attacking organizations across the globe for monetary gain or strategic gain. and, observability data as we use it, logs, traces, metrics, real user data are essentially the building blocks for us to deliver the capabilities that we do to be able to manage the combination of observability as well as application security techniques. it is those two together that

delivers such a powerful solution for our organization on behalf of our customers. tom: in terms of the global growth picture, growth is slowing, it's pretty decent in the u.s. flatlining in europe, sluggish in the u.k. are you seeing clients cutting back on spend? >> we haven't seen that. observability is mandatory. we do see it is critical. in the past you would use the network operations center, lot -- lots of manual labor to manage outages and resilience. in essentially look for the needle in a haystack that when something goes wrong you need to find it as quickly as you can and processing all of this data with enormous complexity manually is really difficult. what you can do to essentially mitigate that is put in place the automated systems to enable you to replace that manual

oversight. and the result of that is that ai driven observability is moving to become more manageable. tom: how are you implementing ai into your own business and creating efficiencies? what does it mean for headcount longer-term. >> it's very interesting but it was founded on the premise that observability should be automated. as i mentioned earlier, we use multiple different ai techniques, generative ai. all of this together facilitate the answers that we create from all this data so, ai has been embedded in the fabric. really back to the beginning for well more than a decade. we continue to use it for the state to deliver our business operations. tom: thank you for taking the time and talking about the opportunities around ai and how we are implementing it.

some other stories making the news this tuesday. british airway passengers suffered delays following a systems outage at the airline's main operation system in heathrow. preventing communication across the region. no immediate data available in terms of the number of delayed flights. british airway flight was also down during the incident. the european union's market regulator is recommending shortening the time it takes to settle securities transactions from two days to widen. the change to the t plus one is proposed for 2027. a move that would put the region back in step with the u.s. the u.s., canada and others made the switch earlier this year. ecb president christine lagarde urged europe to pull its resources for short -- shared priorities like defense in the green transition. she says acting as a union can help raise productivity, call for greater integration comes as policymakers prepare for a

donald trump returned the white house. as markets position for donald trump's return to the white house, we will talk markets. her views on how to position. stay with us, that's next. this is bloomberg. ♪

tom: welcome back, stocks have climbed. 10 year yields near 4.5%. traders are keeping a close eye on news around president elect donald trump's administration. primarily the incoming treasury secretary, who that will be. i'm joined by market analysis had at rbc. thank you for joining us. how important is that treasury period for you and the team in terms of how you think about the policy agenda of this incoming trump administration? janet: hi, tom, good morning.

i think the pickup and the treasury yield suggest to investors are nervous about the inflationary impacts from trump's policy. i think the rate of outcome suggests that it's more likely that we will get some sort of inflation. although it is not certain. but i think we are a bit more cautious. we prefer a equities at this stage in we not only prefer u.s. equities, we are actually up u.s. equity waiting because it was said in a very decisive victory. you think about the outcome. it's more likely that we will get better growth in the u.s. because of these policies and the rest of the world we are more cautious and we reduce our weight in u.k. equities because of the fact that it has already been suffering from weak growth and there will be more headwinds. tom: what assumptions are you making about yields in the u.s.

around that bullish call on u.s. equities? is there a point at which high yields derail that risk on fewer u.s. stocks? >> i think we understand the credit spreads are currently very tight at the moment. but equally, we have to understand the u.s. economic situation heading into 2025 is still very much a very resilient. i think with this good backdrop and the fact that we are still under a great cutting cycle, although less than expected, and with these aggressively high convictions of progrowth measures likely, because we have a red sweep. we think that equities likely perform better and there is not too much risk in the credit market at the moment, even though we understand that the spreads are pretty tight. as long as the economy does ok, we think that the credit side of things looks ok, then there shouldn't be too much of a

concern for equity markets. tom: what was the key factor that led you to cut your exposure to europe? janet: first of all, we know that there is u.s. economic exceptionalism that has been there for a long time. but this side of policy, progrowth policy and deregulation likely exacerbated it further. the fact is we have already seen the european manufacturing pmi's have been contraction for a long time. with trade tariffs likely under backdrops, because the trade surplus from the euro area versus the u.s. is 200 million. that's likely to be a prime target. so against the backdrop, i think european equities are likely to suffer. of course there is another headwind coming from china. so they are very exposed to china via trade. please have a double whammy that we are more cautious of. i didn't way u.s. versus u.k.,

we much prefer the u.s. for equities. tom: a potential double whammy. we are pressed for time but we really appreciated. thank you very much. our market analysis at rbc bruin with the market of use there. do another important corporate story in the european space, nestle lowering its medium-term profitability target. lowering that medium-term profitability target and saying that it will become a stand-alone company. let's bring in bloomberg's -- who is in switzerland at the nestle headquarters. perfect timing, perfect location. what else have we learned? quakes today the nestle chief executive is going to be announcing 2.5 billion swiss francs and annual cost cuts. that's on top of previous one billion swiss francs that had been announced. as you mentioned, profitability and the medium-term is expected to be lower. but it might be hardened by the fact that the company expects

sales in the medium-term to still grow 4% plus, assuming normal conditions. on top of that, the business is going to be headed by the head of the european waters business now. and it doesn't seem like a sale could be on the cards because the company is also exploring partnerships. tom: talk to us about that water business, what the sale means and what it tells about the longer-term strategy of executives at nestle. >> the water business represents less than 4% of total revenue. but it has been plagued by problems like contamination, and it is a much lower margin business then nestle as a whole. so i guess it tells us that the new chief executive is not afraid to sell stuff off or look at selling stuff off when it's not working. i think it's noteworthy that other potential businesses that

may be were performing so well, such as the frozen foods business, are coming out of their chopping block, or the ice cream unit that is already a joint venture with pai. that also appears to be safe. tom: thank you very much. wondering what's coming out of nestle on the ground for us as the company trims its profitability goal and wraps up spending on some of its brands with the water business and focus in terms of potential sale. putting more coming up, stay with us. this is bloomberg. ♪

o coming in.. big orders!s starting a business is never easy, but starting it eight months pregnant.. that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs. the chase ink card made it easy. 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. >> if it was mean, i think they can make one more room here in december, that would put them at

four and three, and then there will be a debate about where neutral is. but if you thought the median of the committee thinks neutral is maybe 3%, then you have to have maybe 100 basis points on top of that or 125 because inflation is in all the way back down to target. normally we would take the inflation difference and then multiply that by 1.25 or one of five or something like that and that's what they would do. that will put you around 4%. so they would actually be pretty close to where they'd want to be. did have another move to make. maybe in the first quarter or second quarter. then after that it would be inflation for 2025. pretty in shape for the december meeting. >> may be december. i haven't heard a lot about this

in a long time. basically there's this feeling that if markets are flying and we have this feeling that businesses are doing just fine, that everything can chug along at these interest rates and we could see a higher neutral rate. just how much have you heard a change in tone from fed officials over the past couple of weeks? >> they made 75 basis points of cuts already, so they are not at the same situation that they were in june or july. and i think the growth scare that occurred in the july and august timeframe has dissipated, now you've got gdp now in the atlanta fed at 2.5 and the last two quarters have been pretty strong above potential growth rate for the u.s. economy. so i think they don't have to go too much further to be at the right rate for this level of inflation in an economy that's

moving along pretty well. tom: james bullard speaking on expectations around the fed's next steps with the view that they could go again in december. to a major corporate story ram bloomberg's reporting on the focus of google and alphabet and the department of justice urging a judge in that case and then detail will come through in april of next year, to compel and for school go to spin off its chrome browser. really important in terms of the growth of the business, the driver of revenues for google. this is a potential fracturing of the google ecosystem. it's not the worst case scenario. they won't compel them to sell off. the android operating system but it is a pretty significant step if the judge heeds this recommendation from the doj. we will see how that company performs, lower by 1% on the back of that detail. let's flip the board. when it comes to walmart, which will be reporting before the markets. and of course, the biggest

supermarket chain because it's a real touch point engage on the health of the u.s. consumer. seemingly set to benefit from a move to groceries by the u.s. consumer and we will see if that continues estimates of growth in terms of sales, 3.8 percent. slightly below what you saw on the second quarter and certainly compared to the third quarter of the previous year, down from the 4.7 percent. 3.8 percent in an environment of our interest rates. relative resilience is the expectation. we will get that number with those markets dropping before the markets open stateside. we will speak with the cbl of president north american equities. don't miss that conversation 8:30 am u.k. time. the opening trade is next. this is bloomberg. ♪

♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪

(ominous music) (bubbles rising) (diver exhaling) (music intensifies) (diver yells) (shark roars) - whoa. (driver gasps) (car tires screech) (pedestrian gasps) (both panting) (gentle breeze) - [announcer] eyes forward. don't drive distracted.

anna: good morning from london. we are an hour away from the opening trade, here's what you need to know. donald trump's team is said to consider pa