♪ tom: good morning. this is "bloomberg daybreak: europe i am tom mackenzie in london. these are the stories that set your agenda. a 60 day cease-fire between israel and hezbollah comes into effect, a first step towards ending a conflict that has killed thousands. the new cabinet takes shape in a

sign of his commitment to tariffs donald trump takes jamison greer as trade representative and kevin hassett for the national economic council. plus, european futures are in the red as asia drops as even after u.s. stocks roared to a 52nd record high for the year. ♪ happy wednesday. let's check in on these markets. it's a mixed picture if you compare would happen overnight in the u.s. versus the asian session. european futures point lower by 0.3%. two key factors for these markets, the geopolitics in the middle east and also the continuing detail around trump's picks for the cabinet. we will bring details for you across this hour on both of those fronts and more.

ftse 100 futures currently flat in the u.k. s&p futures also flat after that 52nd record high for u.s. stocks yesterday, back above the 6000 level. nasdaq 100 futures pointing lower. let's flip the boards and lacrosse asset. a bit of moves -- and look cross asset. a bit of moves, we do have some positions when it comes to the options market, suggesting some in the trading community are betting on higher yields in the weeks ahead. 4.23 at the front and on the two -year. we continue to watch the budget details out of france. brent, $72.89. we look ahead to opec-plus, that's a factor for the oil markets. bitcoin, 93,000, well below these highs we reached a week ago or so. let's get to the middle east and what has transpired over the last 24 hours or so. israel and lebanon's hezbollah

have started that 60 day cease-fire. it is now underway after reaching a deal following weeks of u.s. mediated talks. president biden says the deal is a major step to ending the conflict in the middle east. pres. biden: this is designed to be a permanent cessation of hostilities. what is left of hezbollah and other terrorist organizations will not be allowed, i emphasize, will not be allowed to threaten the security of israel again. over the next 60 days, the lebanese army and state security forces will deploy and take control of their own territory once again. tom: let's bring in den weems. -- dan williams. is the cease-fire holding and is it likely to be sustained, the implications of this deal? >> four hours into the cease-fire, it appears to be

holding. will it hold for the entire designated 60 days? if it does, to judge by the statements yesterday, it could prove even more protracted. so short of a peace deal, but nonetheless, a resolution of at least one front, this multi-front war between israel and iranian proxies and iran itself that has run something like 14 months now. for the time being, it appears to be holding. the 60 days set out is a framework that this deal takes us right into the trump administration, the handover from the biden administration. i think what we will see is the outgoing administration doing its best to consolidate this, parlay this into something more protracted, something that might involve the gaza front and iran itself, although israel has said one of the reasons it agreed to cease-fire in lebanon is so he can focus on other fronts, specifically gaza and iran, an allusion to the iranian nuclear

program and potential action against it. tom: given what israel has been sitting on both of those fronts, how realistic is it to expect that maybe this cease-fire deal can be used as a template for the conflict, ending that conflict when it comes to gaza? dan: that's an excellent question and i think there is some reason to be optimistic on that front. israel has said that this deal in lebanon effectively delinks hezbollah from hamas. those are two tips of the iranians be a, if you like -- iranian spear, if you like, in the region. hezbollah wa refusing to cease-fire so long as israel continued its offensive against hamas in gaza. it is now clear that that is no longer a hezbollah position and i think israel is hoping hamas will feel isolated, like it is

near to being crushed in the gaza strip and might be ready to cut a deal through which it would return some if not all of the hostages it's been holding in the gaza strip since that attack of october last year. a big question is how iran will conduct itself. it is clear iran has signed off on hezbollah ceasing fire from lebanon. the question is, will it now send signals to hamas, another proxy, that it indeed should be looking to wrap up the war there and striking some sort of deal with the israelis through mediators? tom: excellent context on this important cease-fire and implications for the broader region. dan williams with the details and context out of jerusalem. to the oil markets. the impact study so far this morning as markets way that cease-fire. let's get the details in terms of some of the factors feeding into what is moving oil at the moment and bring in anthony dipaola in dubai.

talk to us about the cease-fire impacts on the market. let's start with the cease-fire and how that is tying into the broader oil markets. anthony: yeah, good morning, tom. we see oil per much stable today so not a huge impact from that cease-fire. that should be something that is kind of a negative for the oil marketm it take out some of the risk. that risk premium has already sort of seeped out of the oil price. that's why think we are not seeing that much reaction to the downward side as that kind of negative bullish kind of impulse comes out of the market. really what's having a seemingly bit more of a stabilizing effect is that opec-plus impending decision that you mentioned. we are getting the first indications that the opec-plus members are discussing again to link the plan -- again delaying the plan to unroll some of those cuts. they have been talking about

bringing some oil back to the market in january, which was going to potentially bring prices down because we are looking at an amount of oversupply going into next year. but now, we understand from sources that the group is talking about again delaying that rollback of those cuts also for several months because they are simply seeing the writing on the wall that we do have a lot of supply coming into the market. demand growth is still sluggish. the supply that we see coming into the market from sources even outside of opec-plus already outweighs the forecasted demand growth in the market, so that does not really leave much room for opec-plus oil to come back to the market. they seem to see that writing on the wall and they are easing up on that. we saw the saudi energy minister was in iraq yesterday talking to the prime minister there. iraq is one of those countries that is overproducing over its quota so they want to try to get that in line and get opec kind of back on track, defend that

price, probably around $70 a barrel, defend that as a floor and move forward in the next year. tom: it's really interesting you bring up iraq, because that leads me to my next question, which is about the discipline or lack of discipline within opec-plus as they considered to link again putting more oil into the markets and reducing these cuts -- consider delaying again putting more oil into the markets and reducing these cuts. how much pressure is there amongst members at this point? anthony: the discipline is focused on those three members that are out front ahead of their quotas, let's say. that is iraq, because extent, the uae -- iraq, kazakhstan, uae as well as russia as certain times as well. the russian energy minister was in baghdad yesterday. the saudi's and russians had up that opec-plus committee he --ad up that opec-plus committee which looks at quotas.

discipline becomes really important because as opec-plus tries to con any kind of price decreases, they need to control the amount of oil that's in the market. if they are overproducing as a group, that makes it much more difficult for them to maintain and defend that price of about $70 as a floor. opec would like it higher than that. but we are seeing some analysts saying it could be even lower so opec is trying to limit the damage and they need that discipline to hammer that message home. tom: ok, bloomberg's anthony dipaola on these oil markets on some of the key factors playing into them right now. thank you. let's cross over to asia, singapore, avril hong standing by with a look at the markets. a little bit of a divergent picture. looks like china is performing well but soggy across the rest of the region. avril: this is something we saw yesterday as well, that

divergence, that mixed bag. asian stocks mostly lower today as traders weigh the risk of tariffs. that's kind of offsetting any. easing of middle east tensions. the stocks that are underperforming other ones in japan, south korea, taiwan for another day. china is outperforming. there is some talk about how the risk from tariffs might heighten the odds of fiscal stimulus in the country. let's flip aboard and take a look at the drags on the region's benchmark because we are seeing that coming through from the japanese automaker toyota. as the yen strengthens. but that chip stocks are down. this is what i wanted to highlight because you talk about your clinical risk. we are hearing how trump's pick for the department of government efficiency things that ships act there are a number of these cap -- chips act, there are a number of these -- take a look at how the yen is hearing. it has been quite steadily climbing this week. it's at the strongest level against the greenbacks in three weeks ago which is around the time of the u.s. election.

part of this recent climb is dollar related. we also see a bit of haven bid. but more importantly, the expectations of what we are going to get from the bank of japan. traders have upped their bets from a december rate hike from about 50% earlier in the week to roughly 60% now. if you look at the early signals about wage hikes next year in japan, they also look pretty positive, whether you are wearing out what we're hearing from the largest labor union or the prime minister, he is renewing pressure on companies to hike wages next year. all in, it is fueling the expectations of what the central bank in japan is going to do. that is what is causing this bullish outlook on the japanese currency. tom? tom: avril hong in singapore with a deep dive on the asian markets, thank you very much indeed. pce data expected to show a pickup in u.s. inflation in october from a year earlier. we know this is a favored gauge for the federal reserve, talking of which, minutes from the fed's

november meeting shall policymakers preferring a gradual approach to future rate cuts. let's bring in bloomberg's valerie tytel for the context. what do we expect from the data today? >> the tension on those minutes where the repetition of this word gradual. there was broad support for gradually lowering interest rates. this policy meeting took place just after they cut 50 basis points so a bit of pushback in terms of the broad sentiment at the fomc saying they don't need to necessarily repeat that steep rate cut but going for a gradual pace ahead. they also noted that downside risk to growth have eased, they have moderated. that was not necessarily a surprise. we did hear that directly from jerome powell himself in the press conference. they did mention a five basis point rate reduction when it comes to rrp. that would essentially mean that the fed has their eye on

liquidity concerns around the year ended turn. the end of september, we did see a funding squeeze happened in interest rates. this clause in them it's shows the fed maybe does -- in the minutes shows the fed may be does have concern on a year and funding squeeze and perhaps they could cut the rate on the rrp at the december decision. the decision is on a knife edge. we are still pressing a 50-50 chance of a cut from the federal reserve. we do have a big data dump today. notable a lot of this data is coming today instead of normally on thursday because of the thanksgiving day holiday on thursday. if you guys flip on, i can maybe talk about the data dump coming tomorrow. there we go. second quart of gdp we get at 1:30 u.k. time. we also get durable goods, which is a feeder into this current quarter's gdp reading. jobless claims end and finally beget the pce data. bloomberg economics warns that a risk of a hot print could tempt the market to price in a's at

that -- price in a pause at the december meeting. when it comes to the equity market, it really shrugged off the risk of tariffs and closed at another record high when it comes to the stock market. something adjusting i wanted to point out and the consumer confidence data yesterday, tom, that optimism around the stock market surged to a record high, perhaps this is the trump 2.0 effect that we are seeing, this optimism with a background of tax cuts and tax reductions possibly being extended next year. but it is notable there is a lot a bullishness around the u.s. economy and the u.s. stock market. we looked through those tariff threats yesterday and closed at all-time highs. tom: that bullishness is very interesting. valerie tytel, thank you very much indeed for a breakdown. looking ahead to pce data out of the ust.

israeli shekel higher yesterday on the back of the announcement there has been this cease-fire deal. the israeli shekel is now down about 0.2% versus the u.s. dollar. giving up just some of those gains but we will continue to monitor this for you. trading started at 6:00 a.m. u.k. time so it's been trading for about 15 minutes. let's have a look at what else should be on your agenda this wednesday. 9:30 a.m. u.k. time, we are going to get the gfk consumer confidence gauge, so a touch on the health of consumer. 1:30 p.m. u.k. time come is the gdp printer for the third quarter out of the u.s., we will bring that for you. 3:00 p.m. u.k. time, it is the core pce price gauge, year on year expected to edge up to around 2.8%, month on month around 0.3 percent. will it change the direction for the federal reserve in terms of thinking about the next steps around rates? u.s. president elected donald trump fills two key posts in his economic team as trade partners react to his tariff threats.

more details next. this is bloomberg. ♪

♪ tom: welcome back to "bloomberg daybreak: europe." donald trump has named it to key posts on his economic team. kevin hassett is set to direct the national economic council. jamison greer is tapped to be the u.s. trade representative. the announcements come a day after the u.s. president elect vowed to impose additional tariffs on canada, mexico, and china. let's get more in terms of the tariff reaction, how some of the trade partners of the u.s. are adjusting to this with bloomberg's brandon murray in just a moment but first i'm joined by katia dmitrieva on

those cabinet picks so two excellent people. . do these appointments line up with trump's tariff talk? there was some expectation that may be the pick around the treasury secretary was going to be market positive but now we are reminded that trump is very much wedded to the idea and policy of tariffs. >> these two men are both veterans of trump policy and trump's white house. it is good to see brandon here is all because both of us were in d.c. previously where we covered trump 1.0 and these guys in particular so it's good to be on air to talk about. kevin hassett in particular, he was previously in trump's white house as the head of the cea and he let a lot of the tax-cut efforts. he came back as a senior advisor to trump so very much in the camp of trump and republicans. one of his first jobs in the white house was advising george h w bush, so long experienced in

d.c. and the white house. greer, we have someone who is not like lighthizer. it was expected to be robert lighthizer but it's sort of like a lighthizer light. this has long been someone who is a student of lighthizer's, seen as his protégé. we can expect a lot of the same policies. trump was not kidding. if anybody had any doubts about trump's intentions when it comes to tax cuts and tariffs, these two men have previously spearheaded these efforts and we could see a lot more to come. tom: brendan let's bring in you at this point. what reaction have we been getting from some of america's key trading partners? i saw the canadian response are reporting they have pledged to do more on the border. for some surely in the incoming trump administration, that would be grits to the mill, saying these threats work. >> the responses from canada,

mexico were quite distinct actually. justin trudeau picked up the phone and called incoming president trump and said, you know, here is what we are doing on the border. all the problems with migration are coming from mexico, the drugs are flowing through mexico. the canadian response was immediate. they put together a so-called war room to respond to trump. mexico, on the other hand, you know, sounded fairly tough, and said if you want to put tariffs on us, you are just hurting your own companies, the auto companies. you could read into both of those reactions. the range of kinds of responses that we are going to see when these threats come down in the future. some countries are going to say yeah, well, we will just retaliate against you and hurt your own companies. others will get on the phone and

say whatever you want us to do and try to calm trump's concerns. tom: that divergent and split response is really fascinating, isn't it? the most punitive tariffs at least being threatened are targeting china. would has the response been from beijing, if at all, from this? >> china will typically respond cautiously in a sort of slow, they will not immediately react with specific tariff level retaliations. it has been a more slower, deliberative response from china. they say we will take into account what president trump is saying and we will engage in discussions and try to come to a solution where both sides win, so it has been a very, you know, kind of, steady, moderate response from china so far. tom: ok. brandon murray, thank you very

much indeed, our trade czar joining us from hong kong to give us context around those pix of incoming president and implications for the u.s.'s trade partners. that story continues to evolve. we will bring you all the details as we get. reuters is reporting that trump's team is considering seeking direct talks with north korean leader kim jong-un. the discussions are set to be fluid. no final decisions have been made part trump held three meetings with kim jong-un during his first term. earlier this month, kim said in a speech that passed talks with the u.s. merely confirmed washington's quote "unchangeable hostility" towards pyongyang. more coming up. stay with us. this is bloomberg. ♪

tom: welcome back. dell and hp shares dipped. pc makers had hoped that new machines being touted for their ai capabilities would spur demand. dell's cfo says "the pc refresh cycle is pushing into next year." crowdstrike shares slumped after hours following a weaker than expected earnings forecast from the cybersecurity company. their numbers disappointed investors washing for signs the firm had recovered from a flood update that crashed computers -- flawed update that crashed computers around the world. it disrupted industries include air travel, banks, and health care. coming up, we are going to speak

to the ceo of metals and renewable energy producer norsk hydro with their latest strategy update. why they are going to be shelving part of their business around batteries and recycling and how firms in the sector, of course, are windows possible potential trump tariffs. how their adjusting to that. european futures are currently pointing lower by zero point 2%. you can join the top conversations on the energy transition by the way at bloomberg's bnf summit. energy, finance and technology converge. scan the qr code to sign up and ♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪

mackenzie london.

a 60-day cease-fire between israel and hezbollah comes into effect. it's the first step towards ending a conflict that's killed thousands. european futures in the red as asia drops even after u.s. stocks roared to a 50-second record high for the year. plus, the new cabinet takes shape and a sign of his commitments to tariffs. kevin haset for the national economic council. markets weighing up those nominations, those picks by donald trump. and the middle east tension and some easing with the cease-fire in focus. futures up after .03%. over night, stateside. we look ahead to data in terms of the p.c.e. number. we know the fed is focused on that. that's expected to increase by

0.3%. will it change the directory? december a toss-up for the fed according to the markets. will that be adjusted? your futures up by .03%. and a smidge .01 of a percent. stateside the u.s. currently yielding 4.23. euro dollar at $1.04. $72 a barrel on brent. that could be consequential as well. bit coin edging hire. currently 93,000 up 1.7%. let's get to the middle east right now. a 60-day cease-fire between israel and lebanon is now in effect. iran welcomed the deal and reiterated its support for

hezbollah. meanwhile benjamin netanyahu, said the deal would allow them to focus on the iranian threat. >> i am determined to do whatever it takes to prevent iran from obtaining nuclear weapons. i have said many times that a good agreement is an agreement that is enforced and we will enforce it. >> for more, let's bring in joumanna. give us the details in terms of the's fire. is it holding? do we expect it to be sustained and could this lead to a broader easing of tensions in your region? >> well, tom, lots of valid questions. this cease-fire has only been in effect for four hours. so far it is holding. but it a major step towards de-escalation of the conflict's intentions in the region.

the -- the heads of state from both the u.s. and france, biden and macron put up joint statements saying that it paves the way for "a last calm in the region" in terms of what it includes, we know that it is temporary in nature. it's a 60-day truce with the possibilities of being extended so long as the conditions hold. now what are the conditions? number one, israeli troops are to withdraw gradually from the south over a phased period. hezbollah fighter are required to move 30 kilometers away from the border. thousands of lebanese troops be deployed to the area to keep the situation under control alongside unifil and peace-keeping troops. an international panel headed by the united states will continue to monitor compliance. there's an important caveat here. the israeli prime minister

benjamin natan yahoo! when he was speaking about the cease-fire yesterday, added that if hezbollah breaks the agreement and try to rearm, we will attack. this is a part of the cease-fire that is separate to the terms of the deal that it seems as though israel were insisting on it wanted to accept the terms because if there were a breach, you could see a re-escalation of tension. so something to bear in mind in terms of the longevity of this truce, the monitor willing be key and key also is that hezbollah doesn't use this as an opportunity to re-establish a presence in the southern part of the border and lots of people are talking about the possibility of rearming through other parts of the country so the northern bored is also in focus because's been a key entry point enter into lebanon. lots of potential flash points. leaders are saying thats that

very positive step for the region. tom: one glimmer of home out of that region and the first one from quite some time. horizon's middle east, joumann. percete. norsk sets out the decarbonation efforts and plans to grow reknuble palat energy. joining me is the c.e.o. ivan kalavek on a big day for you and the team, of course. this strategy has been underway in a year. one thing that stood out from the press release that you sent over to us was the phasing out of the battery materials and green hydrogen businesses. you are doubling down on

recycling. talk to us about why that is is? >> for me it's about making choice an keeping focus. we have a very good position when it comes to recycling and growing in renewable energy. it's how you allocate the capital. and then we will look at the time line, the risk and the need for developing hydrogen batteries. that is something that we will select the way. no question on that. but it's what we know and how to to do. >> would be the core areas is battery recycling. you had a joint venture with norfolk. they have their own financial problems. you're looking to raise some long-term financing for that j.v. how much do you expect it to raise? >> so this is a joint venture. we have the majority. this is very close to the recycling business that we do.

same source of -- of battery materials that we use to buy aluminum scrap. and we have it tied to the o.e.m.'s. so there are synergies that we want to develop. we want to continue to develop going forward. >> are you getting closer to raising that capital and how much are you looking to raise? >> we haven't come up with the number. the company is well-funded and there's not significant capital needed for that growth. >> you invested about $9 billion. have you written down that stake. >> so we took it down in the results. >> talk to us about the capacity then. you're boosting it at a time when margins have fallen to and all-time low. when do you see that story turning around? >> this comes together with the economic activity. scrap is generate when people

buy new cars. people refurbish homes, take out the windows and so on. economic activity in the u.s. is not great. that will come back as we see interest rates lower. also on the price side because when people buy less aluminum the price goes down. >> do you see recovery in margins for the business next year? >> we do expect to see some pickup in 2025. how much and at what which point during 2025 is the million driver's license hard question. >> on the flip side, aluminum prices -- prizes are up. there's not enough supply meeting demand that demand is still there. is that a story that continues since 2025 to keep a floor under those prices? >> the way we see this, the supply and demand will be healthy as we go into 2025. and i love the demand driven in china is from the green position as they keep on building up renewable power.

it's quite a significant amount of aluminum. >> on china they announced they're going to be taxing an export. are you seeing consumers wanting to lock in more deals as a result of maybe a reduction in products coming out of china? >> we will see. this one, you will see more healthy demand for summits or exclusions of world products but you'll see aluminum prices go up which will go up $100 immediately after that announcement. >> it kicks in in december. have you seen a pickup in orders? >> on the metal price we've seen it already. and we will see it as soon as we pass december 1st on how this is going to work out. >> talk us to about the trade. what do you think the impacting will be?

10% has been threatened. much higher on china and potentially much higher that in china and mexico what do you expect the impacting will be in tariffs? they are likely to come in some shape or form. >> he's announced the first -- the one you referred to of course and now we'll compare the comps after january 20 and afterwards. you will see a change in trade flows so the canadian medal that will usually do pro-the u.s. will go somewhere else and then the u.s. needs to attract metal from other places that will lift what we call the midwest premium and in the u.s. our business is very much local business. we buy our raw materials in the u.s. and we sell our products from the u.s. we're insulated from the tariff discussion. >> are you putting any mitigation efforts? are you adjusting anything in

expectation of tariffs? >> we are prepared but it's too early to conclude what the outcome of the tariffs are going be >> part of the rationale that it's going to force them to earn more in the u.s. will you be investing in the u.s. if these tariffs come into place? >> we've been investing quite heavily in the u.s., again, local consumption, local production in sales in the u.s. the thing with aluminum smelters which they're exposed to this takes time to build. it will take four to five to six years. that would be the result but you wouldn't see the impact before further down the road. >> you supply a lot of materials on the auto sector. it's large lay global story. what is your expectation in terms of when we see a turnaround in terms of this auto state? how are you adjusting to that? >> so we are exposed in every

part of the business that we do. we are more exposed to the e.v.s and the larger producers and they are less impacted than the small intermediate size car which are more exposed to to the chinese part. it's hard to say which quarter, which month? but the interest rates will come down as people need to replenish or get new cars. we will see that at some point. it's impossible to pin a specific date. >> of course. but it brings us back to the interest rate conversation and the need for this global demand for lower the demand. calvin, the c.e.o. on the 2030

plan and the opportunities in the months and years ahead and have to adjust to the potential trade headwinds emanating in the u.s. join the energy conversation at bloomberg summit where energy and technology converge. signup. kicks off on december the 3rd. coming up markets are nervous about beniers to pass a budget and announce spending cuts. we're going to take a look at surging bond risk levels next. getting back to levels we have not seen since the euro's own debt crisis, a focus on france is coming up. this is bloomberg.

♪

tom: welcome back to bloomberg daybreak europe. hiyan schumaker says it left there and the growing complications of doing business in russia. and he discussed the plan with courtroom company ben & injuries. >> i found that in my last one and a half years it was arguably the most significant decision to make but i made it soon because i wanted to create optionality to exit that market. so it took us more than 12 to 14 months to come to that point that we were able to exit. and i felt i had that optionality on the table.

but i made the decision to go not because of the war that's going on right now, but because i felt like the control on our business was coming down. i feel that ultimately if you're a global company you need to have control of your operations. we need to be able to review results. we need to be able to get the cash out in the country ultimately. we need to live up to potentially international sanctions. we need to be able to control our brands and where our brands travel. and that was something that i felt wasn't enough and i didn't see the window into the near future where we would regain that control and that drove the decision to exit. >> talking about ben & jerries. the way it was set up is to have an independent board. will that be the case going forward giving actually a lot of the questions that you you've just been telling me about? >> yeah. ben & jerry has an independent board.

and that independent board that -- that looks after the social mission of ben & jerry's only. that's what we do. but it looks after the social mission that's there. that was acquired theired at the time that uniliver required it. and we respect the merger agreement. and we will respect that merger agreement. >> the c.e.o. of uni event there. french bottom risks rising more than last seen. the euro debt crisis of 2012. this as politicians standoff over the budget's country. here to give us the details in terms of what is unfolding on this front. scripty talk to us about the budget being formed by french leaders. what are the chances that this will get across the line?

what's going on with the budget? >> we're coming at it from the fact that france has to bring down their debt to g.d.p. ratio. it's gone way up than what it should be. it's gone to a point where it's hard to recover from. and that's what michelle is trying to put it back. he's trying to make some severe cuts to things like pension reform. increase taxs in the meantime. france has one of the highest corporate tax rates in all of europe. you want to keep an eye on that as well. he's trying to push that harder at the same time while trying to innovate and really increase growth within the country as well. the problem is the politics of it all. because of course, he's gotten that delay or the extra cushion, the extra wiggle room from the e.u. commission and the budget room there saying give us time. but marie la pen is calling the shots. even if michelle barnier is able to pass this budget through parliament using a loophole, it

could cost him the job with a no-confidence job coming from la pen do you pass the budget but then lose the man who is supposed to be bringing stability to the market? tom: you have a focus on the planning of these markets. what is it telling you about -- about the risks being prized in to french french assets. >> you that chart that showed about the spread spread. 86 basis points. italian debt trades to germman -- german debt. we thought that would slow down. we know the periphery had the summer with tourism. the fact that from a blooming perspective, french bombs make more of the december supply.

it's one of the biggest bond market. that's where we start to see the systemicness. but they might be coming down the road. >> there was a great quote from an asset buyer who bought french debt. we're looking at spain in italy right now. just to underscore what you've been telling us emanating out of the country, a story we continue to cross and monitor for you, the importance of that for these markets. gupta in the opening trade. they will close a van factory in louton blaming the u.k. government electric vehicle mandate. it's going to shift production of electric vehicles, lemic fans. and there are other places that are livable. and they plan to be zero emission as the target enters

and described as strip jet >> come to jun is being investigate into part of a larger prone. in the people's liberation army. the paper does not say what kind of corporation allegations they're facing. these are third consecutive serving. they will be investigated for alleged corruption. more coming up. stay with us. live pictures of shanghai. this is bloomberg.

♪ >> i think he can explain very clear think consequence of not having a good set of policies in terms of what that means for the budget deficit pass and the consequences for interest rates and if they go up the consequences for interest rates for the stock market. i think he can be the voice of

reason to make sure that the policy mix is intelligent and that the fiscal capacity, the u.s. has put on a more sustainable one. tom: former new york fed president phil dudley talking to bloomberg tv right there, of course. let's bring you a look at how the option markets are starting to price in higher yields in the weeks ahead in terms of some of the positions of some of these calls coming in. back above the year to date high of 474. it suggests that markets are not complacent about the risk of an inflationary president-elect, of course, donald trump. we have jobs data out of the u.s. next week and then we have the fed decision on december the 18th so all of those factors could tie into what's happening right now.

you've got money moving into treasure ris today but in terms of the marketing that some are bracing for a selaup off in u.s. treasure police the week ahead. let's see what we can expect from the data. 2. #%. bloomberg economic says you will expect to see core p.c.e. inflation increasing this year and that underscores the view from some that they have to be cautious on these additional rate cuts. more coming up including the c.e.o. of easy jet. ♪♪ ♪♪

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>> good morning from london. i'm anna edwards. we're an hour away from the opening trade. a cease-fire from israel and he is bella comes into effect action first step towards ending a conflict that's killed 3,000 people and displaced more than a million.

donald