tom: good morning this is bloomberg "daybreak: europe", i'm tom mackenzie in london. chinese stocks rallied leading gains in asia after beijing's

leadership makes its strongest pledge in years to boost economic growth. exports from china served ahead of new tariffs from the trump administration paid police charge luigi mangione eight with murder for the fatal shooting of united health executive brian thompson. the 26-year-old arrested in pennsylvania after a five-day manhunt. the syrian rebel group that toppled president bashar al-assad is reported to be forming a transitional government. israel steps up attacks on military sites in syria. we will be live at the inaugural bloomberg women, money & power event today speaking to the most influential female voices in finance from around the world.

tom: good morning, happy tuesday, despite the positivity filtering across asian markets, european futures are pointing to losses looking to snap eight straight days of gains. u.s. markets closed lower yesterday with s&p down 0.6% and the nasdaq 100 off 0.8%. european futures pointing up 0.5%. ftse futures pointing lower 0.5% and s&p futures dropping. nasdaq futures pointing lower by 24 points. let's flip the board. building on inflation data out of the u.s. on wednesday, then you have the ecb decision on thursday, so cpi expected year on tick up to 2.7%. the 10-year yielding 4.18, market see an 18% chance that the fed will cut later this month. euro-dollar at 1.05, brand trading at 71.75 down 0.5%,

factoring in the stimulus pledges of the chinese government with the uncertainty that continues in the middle east. gold at $2,666 as china wraps up buying of the yellow metal, up 0.3% in the session. let's check how markets are faring particularly on china. some of the boldest link which we heard out of chinese leaders in years. let's bring in avril hong in singapore with those pledges. what are we seeing in terms of the equity market reaction to what we have been hearing from senior leadership in beijing? avril: this is a key shift in tone. looser monetary policy, something we haven't heard since the gfc. positive signals, optimism of stimulus and chinese stocks, bonds and currencies are gaining today. but you get the sense investors beyond a shift in tone want to see it translating into action, policymaking. the csi we hundred, the hang seng gained 3% plus plus up

earlier in the session, look where they are sitting now. what this stimulus optimism is also helping is other markets in asia like the ones in south korea, which as you know, has it seen a positive day amid the political turmoil in the country. the cost beginning two plus percent today, not quite erasing declines of the past couple sessions. want to highlight taiwan, it is an outlier, feeling the drag from tsmc which is a key supplier to nvidia which is in the crosshairs of china. we had separate data that showed tsmc sales climbing 34% on year for the month of november. optimism surrounding china stimulus is keeping markets in asia mostly positive today. tom: avril hong in singapore. let's stay on the china story. china's stocks gaining today after beijing's top leaders signaled bolder economic support next year ahead of donald trump's return to the white house read was bring in james

mayger who was on the ground for us in beijing. i certainly don't remember hearing or seeing language like this from senior leadership in china for years. this seems to be a significant pivot. what is your take in terms of what appears to be a marked tone shift from the politburo? >> this is not like the previous two years where you have seen stimulus but it has not happen until the fourth quarter. or it has been announced at the end of september and finally october, november they start to dribble out extra bond sales and spending. this is setting up for the economy next year, we will have the central conference possibly tomorrow. that will set up targets and goals for spending plans for 2025. the significant thing is yes there has been a massive tone shift in what the government is

saying about monetary and fiscal policy, but also, what is happening now. making clear that from the start of january next year which is only a couple weeks, there is going to be a real push on stimulating the rest of the economy and getting domestic demand to grow more stronger than it has. tom: forcefully lift consumption was a key line that jumped out. in terms of next steps what are you and the team watching for? >> we have the central economic work conference next few days, they will do a big announcement probably thursday afternoon about the general terms of what they decided. then we will see them monetary, or the policy targets, released in march of next year. things like how are they going to actually support consumption growth, is there going to be real change to the social security system, better pension payments for people, equalizing the gap between urban and rural

chinese and what they get from the pension and health care system. it tends to help companies pay wages faster. these are the kind of things that will be significant. you might see local governments being given more money to buy housing. that will obviously help the housing sector. what is really keeping the economy depressed at the moment is lack of confidence from households.and lack they invest, will lead to further returns in the future. more money for men peoples pockets, support for the housing market and possibly if there is a promise of social welfare over the long-term, that should encourage people to spend more and save less. tom: some reporting, the deficit target next year may be raised to 4%, my understanding would be the widest gap since around 1994.

what is your excitation in the expansion of that deficit target as officials look to fund baby a looser and more stimulus tory set of policies? >> my reaction is finally this is what people have been calling for a long time, the imf, world bank and other people have been saying china has the capacity to run a bigger deficit and of the central bank has the capacity to spend more, borrow more cheaply and use that money to pay for things the country needs. looking at the chinese government, it is like a fiscally repressive government, like you see in germany where they have the debt brake. it is like are publicans in the u.s. who don't want to borrow and it don't want to spend and everyone is calling for the central government to spend more to bring the economy out of the doldrums it is in. if they raise the deficit, whether it is 4%, the augmented target could be as high as 10%. whatever that percentage of gdp

is, the central government needs to borrow and spend more, because the provinces and local governments don't have the capacity anymore. and companies don't want to spend because they don't see possibilities and profits down the road. the only game left in town right now is the central government beijing taking responsibility for getting the economy going. tom: james mayger, excellent, on the ground for us in beijing on this major tone shift and what to watch for in the weeks.ahead . switching focus, a suspect has been charged with the murder of unitedhealth group executive brian thompson. 26-year-old luigi mangione eight was arrested after a tipoff at a mcdonald's restaurant in pennsylvania. the governor josh shapiro says the suspect should be quote no hero to people frustrated with the american health insurance industry. >> in a civil society, we are all less safe when ideologues

engage in vigilante justice. in some dark corners, this killer is being hailed as a hero. hear me on this, he is no hero. tom: for more let's bring in bloomberg's bill faries. what is the latest then? >> we are learning a lot more as the hours go by about this chief suspect ouija manji on -- luigi mangione eight. grew up attending an elite private school in baltimore. attended the university of pennsylvania where he studied engineering and computer science. he even helped to teach a course on artificial intelligence to a group of high school students in a summer school program at stanford university. as investigators pore through his social media accounts they are learning that he at one

point seemed to praise the writings of the unabomber, who he said was rightly jailed, but had essentially made interesting points about where society was headed. on his goodreads account there were to books about dealing with lower back pain and back health medical issues it seems that has created speculation whether there may have been a medical issues in his own background that resulted in difficult exchanges with insurance companies. we don't know that much about it. he is facing charges in pennsylvania of having a host of fake ids and having a on illegally. the more serious charges just came down the last couple hours in new york where he will face a murder charge and is likely to be extradited from pennsylvania to new york at some point over the coming week or so. tom: this merger has

reverberated across the nation and beyond, quite frankly, josh shapiro the governor of pennsylvania referenced the fact that some people in "some dark corners" as he said, have celebrated the suspect, whoever that is ultimately. what do we know about why this has resonated with so many? >> yeah, governor shapiro talked about dark corners. it seems to be a lot more than that. people are being very public, at least on the internet, in terms of praising mangione. there is a lot of frustration has been for years in the united states over access to health care and then the cost of health care, even if you have insurance plans. people sometimes feel like they pay very high monthly premiums, and then still have large deductibles. there is a sector of people who look at this who say that insurance companies spend too

long debating whether to authorize coverage to doctors or medical professionals. there is a huge pent-up frustration about the health care industry in the united states. a lot of that is coming around to focus on this case and this shooting in particular. tom: bill faries on those developments. dramatic pictures out of pennsylvania. we appreciate the context, bill. you can get a roundup of stories to get your day going in today's edition of daybreak. middle subscribers can go to dayb on the terminal. traders have their eye on global central bank decisions this week with the ecb taking center stage on thursday, to kick off a bumper few days of meetings, we have heard from the reserve bank of australia which held rates at 4.35% as expected. a spring in valerie tytel to break this down for us. what was the message out of that decision from the rpa? >> the message the market took from the press conference and statement they released was it

was a dovish decision. they didn't hold rates at a 13-year high but they hinted there could be a rate cut in the near future. they mentioned downside risks to growth and stressed they are gaining confidence when it comes to trajectory of inflation. we saw the aussie the biggest mover in the fx space sinking 0.7%. a rally in the front end of the australian yield curve with that three-year yield down eight basis points. if you take a broad look at where the rba stands they have yet to begin the rate cutting cycle but perhaps it would be until february where they would begin it. the market pricing is like 70% chance we get an rba rate cut in february. the first full rate cut is not priced until may. this dovish tilt from the rba might foreshadow what we hear from other central banks who are meeting this week. we are hearing from the bank of canada tomorrow.

they are expected to go for back-to-back 50 basis point rate cut after an unaffected rise in their unemployment rate friday. thursday in europe we hear from the snb in switzerland and from the ecb. the risk to both his they intend to send a dovish message pretty wasn't too long ago we heard from an snb governor that negative rates are still in their toolbox. with the ecb we get their updated growth and inflation forecast alongside their rate decision. the risk is they tend to make a overstatement with both. tom: the doves in the ascendancy as we look ahead to the bank of canada and ecb on thursday and the fed later this month, we will see if the tune changes for the federal reserve, we get the inflation data out of the u.s. tomorrow. our markets reporter with the details, thank you. the rebel group that toppled bashar al-assad looks set to form a transitional government in syria. we will bring you the latest on that story as it continues to

unfold. and stay with us for live coverage of bloomberg's women, money & power event convening the most influential voices in finance from around the world to discuss consequential themes facing the future of business. this is bloomberg. ♪

tom: welcome back. syrian television reporting the rebel group that toppled president bashar al-assad has begun forming a transitional government. it is led by mohammed al bashir ahead of a because i government set up in idlib set up in 2017 by the islamist group hts.

let's get more from middle east anchor joumanna bercetche. what does this signal about the plans of this rebel group in terms of their control going forward of syria? joumanna: i would say it is the first case or incident of government formation they are trying to achieve out of syria here. the importance of mohammed al-bashir tells you they are trying to avoid a situation of complete chaos given the big vacuum the fall of bashar assad is leaving in syria. we know al bashir is a member of the major rebel group that made all these gains and were responsible for the fall of the assad regime in damascus. he previously headed up the government that had been set up in 2017 in idlib, that was a quasi-government not internationally recognized, it speaks to the little government extremes he has, he is an engineer by training. the syrian state media reporting

this conversation took place between mohammed bashir and the existing prime minister that they are trying to eep best transition of power as peaceful as possible. the question remains as to whether other rebel groups in syria can coalesce around this new government given their competing backgrounds and how they have competed for different provinces and areas within syria. the other question still stands which is that hts is designated a terrorist organization by the u.s. and other countries around the world. the leader mohammed al-jolani tried to downplay the more radical tendencies and is trying to present a moderate force that can govern and preserve minorities' interests but we will see in coming days what effective government looks like. the big question is whether the

broader syrian public will have faith in these new institutions. tom: that is the domestic focus. the domestic focus is rippling across the region. neighbors of syria still reacting and adjusting to the development on the ground. how is israel adjusting to what they are seeing in syria? joumanna: several actual major developments in the last couple of days. the first, as we were reporting yesterday, israel moved into this demilitarized buffer zone in the goal and hikes. typically that was a no man's land were neither that syrian nor israeli army could operate. they started moving into that part of the territory. overnight, there had been several massive airstrikes on military facilities dotted around syria, 250 airstrikes, in fact israeli army radio are saying this is one of the biggest airstrikes the israeli army have ever conducted. they are trying to neutralize these chemical weapons

warehouses, others surface to air missile launchers, airports, any military facilities they think the new leadership could get their hands on. because according to the words of the israeli defense minister, he sees this hts group as a radical extremist group, therefore, they don't want to see those key strategic infrastructure within syria fall into the wrong hands. i should say this prompted a sharp review from nations in the middle east. saudi arabia put out comment saying the actions of syria are impeding on international law. egypt as well sending out harsh words this morning, saying this is an occupation of syrian land and a severe breach of the 1974 our mistakes deal which took care of that goal and hikes buffer zone. many players in the region are watching to see what happens from here.

tom: from israel to iran then, another major player with different intentions and aspirations in this region. how is iran reacting to one of their key allies falling so quickly? is there an iranian response we should be watching? joumanna: the iranian response has been timid. they have said they are watching the developments very closely. and like other countries around the middle east are hoping for a smooth transition. that is the rhetoric of course but in reality we see forces being withdrawn. reports of many iranian militia type operatives withdrawing back from syria towards iraq and eventually back to iran again. the fact that the assad regime fell so quickly is representative of the fact that iran is on the backfoot. not just iran the government itself but it's proxies in the

region, the so-called axis of resistance, syria operated as a corridor for the passageway of arms from iran all the way to hezbollah out which is operating in lebanon. one of the key objectives now from the international community is to ensure that passage of arms doesn't continue now that there is this intentional vacuum in syria. a lot of discussions are going on behind the scenes to ensure there will be a functioning government, to ensure there is no chaos and that gap does not get filled by extremist groups who ultimately continue the passageway of that iranian axis of resistance. one final thing is the ceasefire between israel and hezbollah is still holding. it is perhaps no coincidence that the rebel forces begun their offensive into damascus the same day that ceasefire was signed. tom: bloomberg's joumanna bercetche drawing the linkages for us across this region as that area continues, the middle

east continues to adjust to what is happening in syria. we watch the development in terms of their interim government in damascus. later in the program, rebuilding trust. why the u.k.'s chancellor is pushing for stronger eu ties with talks set to start next year. more on that story next. this is bloomberg. ♪

tom: now to some other stories making the news. a south korean newspaper says the ruling people power party will unveil a roadmap for the quote orderly exit of the president. yoon suk yeol has been banned from traveling overseas while being investigated for his chaotic declaration of martial law. the opposition says the

parliament intends to pass a new budget today to help clear uncertainty. china opened a limit investigation into nvidia over suspicions the u.s. chipmaker broke anti-monopoly laws around the 2020 deal. beijing had given approval four years ago on the condition nvidia did not discriminate against chinese companies. the move is seen as beijing's latest response to escalating u.s. tech curbs. abu dhabi has been called the capital of private capital. we are live on the ground to discuss the emirates' allure for global firms. that 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 need to charge you for three people.

tom: good morning, this is "bloomberg daybreak europe," i'm tom mackenzie in london. chinese stocks rally, leading gains in asia after beijing's leadership makes its strongest pledge in years to boost economic growth. exports from china surge ahead of new iteris from the trump administration. police charge luigi mangione with murder for the fatal shooting of united health executive brian thompson. the 26-year-old arrested in pennsylvania after a five-day manhunt. the syrian rebel group that toppled president bashar al-assad reportedly forming a transitional government. israel stepping up attacks on military sites in syria. we will be live at the inaugural bloomberg women, money & power event today speaking to the most influential voices in finance from around the world.

right now european futures softer looking to snap eight straight days of gains. the china story is in focus, the verbiage from the leadership in beijing, some of the most robust in terms of their determination to support that economy that we have seen in years. the gains for chinese markets having slightly -- ebbing slightly, maybe on hold until you see more details about they plan to implement those policies. european figures pointing lower 0.4%, ftse 100 futures lower 34 points, s&p futures essentially flat, nasdaq futures lower about 19 point, about a 10th of a percent, after the nasdaq fell 0.8% yesterday. let's look across asset, you have money going into treasury markets, yields are down on the benchmark 10-year by one basis point. euro-dollar at 1.05, the currency down 0.1%. we look ahead to the ecb's decision on thursday. 7182 on brent, and gold gaining

on the news that it has been snapped up by the chinese central bank. currently up 0.3%. we are live on day 2 of the abu dhabi finance week where the emirate is looking to position itself as an emerging hub for global investment. joining me is horizons middle east & africa anchor joumanna bercetche you with a guest. joumanna: thank you, tom, so many fascinating conversations on the sidelines of abu dhabi finance week. happy to say that joining me right now is andrea bonomi, chairman of investindustrial. you are opening your abu dhabi offices today. why is it predominantly a european-based private equity firm in the middle east? andrea: the main market for our companies is the main growth market is middle eastern asia. a lot is shifting this way. joumanna: one are the

opportunities you see specifically? andrea: for luxury, luxury has already been here a number of years. whether it is furniture, tom brown, tom ford, ducati, etc. luxury with the first one we are now food, machinery, [indiscernible] , it is becoming a real large market. joumanna: one of the companies i am interested in personally because i like their products is eataly. you have been responsible for their expansion around the region. what is the vision? andrea: the biggest market is the united states but the biggest growth market is here. there are nine eataly's, we just opened in abu dhabi. there are four in south korea, four in japan. we are about to open in china. it is going to be a major

market. the middle east and asia is no longer a market for fundraising, it is a market for investing. joumanna: that is the comment i keep hearing from investors coming here like you looking for opportunities to invest capital not just fundraising. more broadly speaking, it has been a challenging environment for exits. are you getting pressure from your lp's to monetize investments? andrea: the property industry is a cyclical industry and there is pressure for monetization. in our case we are fortunate that we are capital rich, in the sense that the timing was very good for us. so we are in the deployment phase and it is a good time for deployment. exits in 2024 are not strong in the industry, but 2025 and 2026 will be strong. joumanna: why do you think they will be strong? andrea: always the pressure from

investors and liquidity of the market is a cycle. it has happened time and time again, it happened 2000, 2008, all the time. it eliminates unfortunately about 20 to 30% of the private equity houses. and the leaders become stronger. it is important to keep the momentum, the fundraising and the deployment momentum. joumanna: i speak to many american executives and they are excited about capital markets activity picking up next year to my dealmaking, more ipo's exits, how is that going to travel to the broader ecosystem? andrea: it brings liquidity, the big advantage of private equity, the big contribution of private equity brought to the economy is liquidity. liquidity for companies and firms that are very active. it is key. joumanna: one other company in your portfolio is a luxury name

you brought to the market a couple years ago when spacs were a thing, is there potential for spacs to come back again? andrea: spacs will remain much more a niche than before. done by professional groups. our spac was the biggest in europe and it has been successful. it was within private equity so it wasn't a one-off, it was targeting exactly that type of companies. they are very happy. i will talk about it later over here. they are very happy in new york. joumanna: i will watch out for that panel. we spoke about the middle east market potential, the u.s. obviously but i need to ask about your home market. europe feels like it is in the doldrums growth-wise. everyone you speak to the sentiment is really negative. growth outlook numbers are subdued, how is that trickling down to europe and the

opportunities you see right now? andrea: europe is getting what italy used to be. where you wanted to invest in italians and not in italy. now europe is probably the best place, more stable, the most logical, etc. when you invest in europe, you want investment opportunity. when things are slow, you can buy well but you need to concentrate on companies that have a lot of white space. joumanna: do you see those exciting japanese coming up with new innovation out of europe right now? andrea: there is a lot of excitement at the company level. but i wouldn't say at the government level. if you look at the whole of europe, you don't want to invest in europe, you want to invest in specific european companies and that works very well. joumanna: is it overregulated? andrea: it is overregulated in europe. if you look at other countries, the regulation is now a trend, and we need to bring this to europe.

it is very important otherwise we will have re-localization of companies because there is a lot of capabilities in europe. joumanna: i want to ask about china because you and i were speaking off air about your expansion plans there. tell us what you see is the opportunity in china? andrea: exactly, we are a little contrarian on china. all the companies keep investing in china. it is going to remain a part of the turnover of leading companies. you cannot move away from china, you cannot give up on china. obviously, it is not the china it was a few years ago but these things are cyclical. all the firms are india, india, india. this pendulum swings too much one side and the other side all the time. joumanna: sometimes it pays to be moderate. thank you so much. andrea bonomi chairman of

investindustrial speaking to us. tom: really interesting interview, interesting lines on europe, on a six and on china. joumanna bercetche cheap in abu dhabi on the ground for us. with a focus on what is happening with the eu and growth prospects there because the u.k. and european union are set to start formal talks on a restart of their relationship year. the chancellor of the exchequer rachel reeves said she wanted to deepen economic ties with the bloc to boost growth. >> i did not come here today to start a negotiation or to lay down a set of demands. those conversations about the reset and those negotiations will begin in the new year. what i was aiming to do today was begin to rebuild those bonds of trust that have been fractured. tom: ok, let's get more with bloomberg's oliver crook who has

been following this for us. getting strange on one level, the u.k. chancellor of the exchequer saying we want stronger ties with the eu, but when quizzed what that might look like saying that is not a conversation for today. what did you make of this attempt for the eu and u.k. maybe to forge closer ties? >> you hit the nail on the head and expressed the sentiment many of us sitting in that room trying to ask her questions about what this relationship would ultimately look like really felt yesterday. we should say there is significant on the signal. this is the first time a u.k. chancellor of the exchequer attended these meetings since brexit. a point she made fairly often. the question is concretely what does this relationship look like going forward? she wanted to boost trade relationships, trade is the number one priority for the united kingdom, perhaps not shockingly, but seeing progress that could be made on defense accords, and the broader question of competitiveness

within europe. what is interesting listening to talk from my time spent in the u.k. covering brexit, you hear so clearly how guarded her language is around not wanting to give fodder to the right, the tories within the united kingdom. so every thing comes with a footnote and this that and the other, yes we want closer ties, but not our sovereignty. that is the issue, to take something from the eu, you need to give something back and most of the european ministers were positive about the u.k. being present. some of them i could detect a note of being unwilling to budge a whole lot. the devil will be in the details but the details will not emerge apparently until next year. tom: symbolism can only get you so far. talk to us about the dealmaking, a major mercosur deal it has been years in making, they will finally settle that deal with latin america. what do we know about the

contours of that deal whether anything can stand in its way? >> this is one of these huge stories that has been in the background for 25 years, the capital markets union in europe we are told it is the most important thing. we don't expect anything to happen and suddenly friday this deal signed between ursula von der leyen and mercosur countries, argentina, paraguay and uruguay. this huge trading deal would cover 780 million people. the biggest trading deal the eu and those countries have ever signed. this could have very large economic ramifications. there are many countries within the eu that are happy to have this happen, particularly the germans. i sat down with the german finance minister on friday and he told me this about the deal. >> it is part of this strategy of de-risking from china and diversifying, so from a geopolitical perspective, it would be hugely important to send this signal of cooperation

to the merck & co. sewer -- mercosur countries. >> opening up geopolitical trade relations with germany very focused because of the deterioration but donald trump coming into office if they slap tariffs, you have a greater number of countries you can trade with, that insulates you to a certain degree, there is a lot of concern around the agricultural sector, the french objected to this, this deal is still blockable, all you need is four eu countries that account for 35% of the eu population trade france will vote against it trade this will stand or fall by italy. where italy goes on this, i will speak later to the polish and dutch finance ministers.both countries have stood against this to see if there is anything to do to make guarantees to not make the european market flooded with cheaper agriculture from south america which is the main concern for the objectors. tom: we watch for the views more closely of italy as we look at the potential prospects for this crucial deal, at least someone

characterize it as crucial. oliver crook with the details on both those fronts. coming up, we will head to bloomberg's women, money & power event in london. next our exclusive interview with citigroup's jane fraser on her five-euro turnaround plan. this is bloomberg. ♪

tom: citigroup ceo jane fraser is entering the final stages of her efforts to symbol phi and streamlined the american bank. investors remain tepid with the stock lagging behind peers and analysts predict and she will miss her 20 26 profitability goal. fraser spoke exclusively to bloomberg's sonali basak.

>> my ambition is to be a high returning, high quality earnings, modern, simpler institution that continues to play a shaping role in the global financial system. we are truly privileged to be in as many locations as we are with a talent base with such a global mindset. and an ambition about it. we have got the right strategy and vision. we are executing with the right organization. making sure we have the right talent and culture in the firm. we are simpler and a well-controlled modern organization. >> if you could give yourself a grade behind the research ring plan, what would you give yourself? >> we aren't done yet. i have always had this is a multi-your journey. we are disciplined about making

sure we don't take shortcuts. the problem with grading yourself along the way is it becomes too tempting to do a quarter by quarter grade as opposed to focused and accountable for delivering what the end product looks like. >> you set out a goal to bring returns on tangible common equity to 11%. >> in the medium-term and beyond after. >> liver consensus this year has citigroup's return on tangible common equity at 6.8%, what do you say to could ask that feel you are not getting there fast enough? >> that we have undertaken a multi-year major transformation of an institution. we are working with ambition, with accountability and with urgency. we have already divested all but one of our international consumer franchises and wound down those that we credit. we have undertaken a massive reorganization of a company of

240,000 employees in six months. such that 50,000 people have a different manager then had six months ago. it's been a major change. we are being bold, we are ambitious. we are holding ourselves very much to account to deliver on the outcomes we should do. i say look at the proof. we're delivering and we're determined to keep on doing so. tom: our interview with citigroup ceo jane fraser have bloomberg's women, money & power event today in london. kriti gupta up is at the event for us. let's start on citi, jane fraser's transformation of that business. walk us through what we have seen across citi since that restructuring started? >> you have seen the most evidence in the price to book ratio. this was where citi was really lacking. this was the task jane fraser

had to take on. this idea she had to take this bank and have it catch up to american peers, not to mention international ones, that is the transformation sonali referenced in that interview matters. citi becoming a more international presence and having bigger presence than american peers in international markets. that has been one of their achilles heels. not to mention their wealth management story. if you need a metric of success, the price to book ratio is the first place to go because that is where you saw citi's lag is most apparent, now that catching up has a little ways to go but has improved when it comes to citi's information and jane fraser of course at the helm of that. tom: focus more broadly through the transformation in terms of private markets and relationship with banks. something that you scrutinize pretty closely. >> it is a completely different

world where private markets are a much bigger part of the conversation than they were 10 years ago. a lot of this has to do with the roles the banks play, the likes of jane fraser and her peers, in terms of how these deals are made. post-gfc, a lot of these banks did financing, now in 24 likely the next couple of years, it is your bigger private equity players where banks have a bigger role in private financing but this comes on the heels of headlines a couple days ago that the likes of apollo for exam large running the s&p 500. those were directly exposed to the public markets will now have six butter to private markets. in europe the infrastructure story is the juiciest part where most people get returns when they are trying to navigate a fairly geopolitical world. i will connect this to the event we are at today, women, money & power event bloomberg's very first where we will speak to the women making this decision-making. jane fraser was a taste of the all-star lineup at this event. panelists include the likes of robin over at man group, ana

boutin at santander. these are the women powering the charge in terms of that transformation i am talking about. in the next hour, "opening trade" is anchoring live from here at women, money and power. we have our own taste of the top players in the private capital markets. we are excited to bring those conversations. . tom: a fantastic event. we will bring those key interviews. bloomberg's kriti gupta on the ground at that event. we will stay tuned for those key interviews across programming today. putting more coming up. this is bloomberg. ♪

tom: let's check in on the equity performance in china. some gains have been pared, some

profit-taking maybe, expectation from investors that they want to see this new policy implemented. make no doubt, the language from the politburo is the most substantial we have seen, in terms of the shift in language and emphasis for years arguably since the 2008-2009 great financial crisis. the big question is if they match that rhetoric shift with concrete policy and implement next year? if they do, it will be significant. do they expand the deficit, the debt to gdp target from 3% that has been set all the way back to the 1990's to 4%? that could be consequential. economists think that will happen next year. the focus on moderately loose strategy for monetary policy, proactive fiscal and here is what is important, forcefully lifting consumption. just moderate and focused in on

that. as those gains in the chinese market moderate, the shift is pivotal, will it be pared with action next year? let's look at expectations around inflation. we will get to that. but the inflation data out of the u.s. on wednesday is a data point to scrutinize given markets expect a more than 80% chance the fed will go again, headline number the fed will tick up to 2% but on an annualized rate, three months and six months on an annualized basis looking at inflation starting to tick up, so does that challenge the narrative the fed has base to go again? there is 20 more coming including those inaugural interviews from the women, money & power event. this is bloomberg. ♪

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

>> good morning from london. i'm anna edwards alongside guy johnson and krityi gupta.

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