>> good morning this is daybreak europe by lizzy burden in london and these are the stories at such agenda. south korea investigates an accident try to find the cause

of the crash that killed people. investors trim positions, japan holds its last trading day for the yeah and jimmy carter dies. january 9 has been designated a national day of mourning. well -- [music begins] ♪ >> checking in on these markets you are looking at futures lower on both sides of the pond, tech selloff in the context of gains for the mag seven as we flip you've got 10 year yield study

at the moment climbed last week of course. euro-dollar at 104, spanish cpi toward the euro area next next we. oil is steady and bitcoin is at 93 thousand dollars but flipping over you have msci down at the moment still successful, nikkei 225 is down, gains in china and

the yen study let's go to south korea with special inspections of planes after sunday's crash which killed 400 79 people, deadliest disaster in south korea, danny lee joins me now for more details, dummy tell me what is the latest on this investigation, looking into the impact of the bird strike? danny: potentially a landing gear failure to see whether all three or one or a cascade of factors had influence on the crash.

a lot going on and authorities are cautious checking all other aircraft but for anyone in asia or europe i don't believe there is systemic risk. over 4000 around the world so investigators are trying to get more but this will be slow. >> does it seem like standard guidelines were in place head? danny: it remains to be seen and as we soar across the internet of the plane without its undercarriage deployed exploding , so it remains to be seen

flying remains one of the safest forms of transport. lizzy: interesting another aircraft had a problem today, earlier this morning i saw that, have we heard from the airline? >> airline confirmed it had another aircraft this morning, authorities investigate but the focus encountering its first fatal disaster, so much focus

whether there will be another incident or otherwise there is a lot of scrutiny. lizzy: danny lee leif -- we thank you. the backdrop is the political situation in south korea or and they are getting a warrant for president yoon after he failed to appear. he can become the first to be arrested while in office. the finance minister is the interim minister after han duck-soo served. investors trim positions heading into 2025 so let's go to mark

cranfield now, good morning. i've seen assets having a tough period, what's going on? mark: political crisis is not helping but korean equities have underperformed since the middle of the year and people lose confidence that korean companies are keeping up to speed in comparison to competitors in taiwan so the index is powered by taiwan semi conductor companies, 30% gain this year while the tech equivalent is something like a 20% loss, we have not seen that in many years.

once they called the marshall law foreign investors are shook by those events. it's not just korean equities and currency, people have been withdrawing not expected to cut, you put those together and it's difficult, the best people will hope for is political situation may resolve and just be cheap compared to asia so it's not going to happen immediately and

for investors may be keen on throwing money. >> things can only get better. is it the case things could only get worse for u.s. assets? mark: other adult will have to do without the federal reserve plays out, first meeting in january after providing interest-rate cuts this year really how long they hold and what is their view we expect so that will play heavily, people talk about the u.s. assets, the

u.s. dollar performing well and bonds held up well, fluctuation in terms of economy so it's a difficult story, exceptionalism needs a lot of momentum and big companies, u.s. dollar has to stay strong and it does not look like that will continue much until trump's inauguration, same themes. once we see his policies and the response things could change so the idea that it will be tested.

lizzy: mark cranfield with a look ahead and now let's look ahead to volumes then, cpi data, one of the first countries to publish. we will get the euro area figure and then china pmi as we get manufacturing pmi on thursday and a bit of eco-data jobless claims and commentary from thomas barkin on friday but january 9 is a national day of mourning for jimmy carter who died age 100.

the one time peanut farmer leaves a legacy of promoting peace. longest living former u.s. president will receive state funeral in washington, date not yet announced. >> america and the world lost a remarkable leader but millions around the world all over the world feel they lost a friend. even though they never met him because jimmy carter lived a life measured by deeds. lizzy: let's bring in kriti gupter. where about to have a new president so what lessons can we learn? kriti: so many things are the

issues of the present day, a rundown most famously kim david accords between israel and egypt. the idea he got egypt to acknowledge israel's right to exist in exchange for areas that are crucial for the peace deal, the cease-fire, dating back to carter and panama canal during carter's control was handed back to panama.

these questions are crucial but keep in mind he was dealing with inflation, cost-of-living and tried to install the fed chair to hit inflation on the head and it cost him his presidency, people were suffering and he did a lot to bring down costs but in the moment very unpopular and one of the few one term president's. lizzy: do we think more about after he left office? >> he had a lot of strong feelings toward habitat for humanity which started in the u.s. where he built houses and

in addition to creating in he did a lot and when you look at his thoughts led to commentary so politically he's had a hit or meat -- miss record. >> remarkable life. coming up crucial gas deal, is it a turning point? this is bloomberg. ♪

lizzy: welcome back.

addressing the halt of gas supplies ukrainian president is set to block gas flows. henry mayor joins me now. how serious would failure be? henry: two routes, one is gas transferred to foreign ownership so this would allow ukraine to say it is not transiting gas or

they could buy from azerbaijan and russia would sell its own gas but these are hypothetical, we don't know. regarding the second part -- yes, just turning to the consequences, what you have to remember is europe imported 40% of gas which is now 8%, impact far less than prior to the war. for these countries slovakia and hungary get gas from russia. serious impact. lizzy: in terms of prospects for a ukraine cease-fire is binging

toward office, russia rejected a cease-fire how likely is that they can and they're fighting? : there will be no quick and to the biting, they are willing to start negotiating in the new year when trump takes office but tough orbiting, the first demand is ukraine must renounce ambition to join nato and agreed to limits on military size so we will see a long time of negotiations where russia will make gradual progress on the battlefield. lizzy: we thank you for the

update as we look ahead, staying with russia's relations we talked about south korea's plane crash and azerbaijan crash as well, russia accidentally shut down the plane which killed 38 people and they told state tv moscow should take responsibility. excuse me, he called vladimir putin who apologized. in other news syria's de facto leader says it could take up to four years to hold elections. he plans to dissolve his group which led insurgency.

saying it will take time for different forces to hold dialogue and rewrite the constitution. trump thrust himself into the fight over the fate of tiktok, bridging supreme court to positive law that would and it unless it is sold by its. company, trump said they should give him time to resolve the dispute since he only possesses the dealmaking, the mandate and political will to negotiate. coming up on daybreak europe, bracing for the impact of trump terrace and upheaval, the outlook in 2025, next. this is bloomberg. ♪

lizzy: britain's ruling labour party would lose nearly 200 seats if elections were held today with surging support for populist reform party weighing on the government, analysis showed labor will seed the majority, facing various challenges including backlash against their budget and vodafone's merger with three will create britain's largest operator, chief executive spoke to tom mackenzie earlier this month. >> this is not about revenues.

the rationale is to unlock investment with the combination we are able to build the biggest, best network in the u.k. reaching 99% of the population, that is what we do for a living. we want to invest to give better service and drive growth in our markets where revenues come from. the most important part for the financial set up is that all the markets including the u.k. will be growth markets with good returns. tom: 11 billion pounds, when

does that start and how will you financed it? margarita: we still have a view weeks to go with partners we will complete and as soon as we complete we will start investing. big infrastructure projects take time, our customers will see the benefit into next year of a bigger network. in terms of funding the other activity as part of reshaping is reshaping our balance sheet so we have all the funding that we need. tom: as you look for synergies

what does that do for headcount? >> this is something we will work on as soon we are allowed to complete. think about it as small impact, there will be duplication but nothing in comparison to the investment plan we have in mind. lizzy: that was vodafone chief executive margarita. plenty more coming up, do stay with us. this is bloomberg.

>> good morning.

this is bloomberg daybreak: europe. these are the stories that so your agenda. south korea investigates its worst ever single air accident. officials focus on a bird strike and landing gear as they try to find the cause. analysis of the black boxes will begin today. and asian stocks snap a five day gain. japan holds its last trading day for the year. and jimmy carter dies at his home at 100. january 9 has been designated a national day of mourning. welcome to the penultimate day of trading for 2024. you have thin volumes as you might expect and futures are pointing lower on both sides of the atlantic. we had that big tech selloff friday in the context of massive

gains for the magnificent seven across 2024. you have the 10 year u.s. treasury yields were two basis points at 4.6% currently been near the highest levels since may. it will potentially weigh on shares in today's session. euro-dollar pretty steady as we await that spanish cpi reading later this morning. expected to come in at the highest since july. oil trading at $74 a barrel. the markets very much focused on the outlook for 2025 and monitoring developments in the middle east and bitcoin trading at 93 thousand dollars so much lower than the market managed to surpass earlier in the year. flipping over to asia markets, the msci index down about a third of a percent snapping the

five-day game but still heading for a successful year. the nikkei 225 is currently down nearly 1% this morning on its last day. the csi 300 is up and the yen is pretty steady trading at 157 per dollar. to european politics. we have an election in germany, political instability in france. just some of the geopolitical challenges looming for the continent in 2025. let's bring in bloomberg's oliver crook on that. you will be busy next year. i wonder how the polls are looking we think about this election in germany. >> we had this parliament dissolve. it paves the way for what we expect in terms of the timeline which is the election on february 23.

now looking at the polls we are seeing a reflection of what we've seen in the for -- in the past few weeks, with the alliance leading in the polls. in the second position you have the afd holding about 20% of the vote followed by the spd to end up in third place and trailing that is the greens. what becomes interesting is although you have an election due to instability and a coalition that could not get along, you have a situation where you will have to have another coalition governing in the country and the difficulty this time around for the mainstream parties is that the party that the entire political establishment in germany has boycotted and refused to work with now has about 20% of the vote and to make things spicier we've had elon musk who is not just content to wait into

american politics but also german politics doubling down and putting out a -- an editorial saying that even though it is described as far-right represents a political realism that resonates with many germans who feel their concerns are ignored and addresses the problems of the day without the political correctness that often obscures the truth. some context as to why this matters, it's a fraud issue for many germans. this led to the resignation of the editorial on the opinion columns because they put this out. we had the leader for his part coming out after these remarks by elon musk saying i cannot remember a comparable case of interference in the election campaign of a friendly country in the history of western democracies and when you look at them and what they are proposing there's obviously the hardline on immigration, the sort of thing that has been adopted more and more by them but they want

to withdraw germany from the eurozone and exit the european union. these are some of the ideas they are campaigning on so at a moment where you have a fractured political establishment in germany when you have about a fifth of the vote going to a party that wants to leave the euro zone it hardly bodes well for them going into 2025. >> you hint at it but immigration will clearly be a theme in european politics into 2025. what else will be on the agenda? >> i think we would be remiss. it seems everything is coming down to the budget because of course germany and france and in broader europe growth is slow and that is making difficult decisions to be made in terms of trade-offs for governments and that is leading to the collapse of the german government first and the french government repeatedly. we are seeing they cannot agree on a budget because the growth of the money is not there.

add to that the trump presidency looming on january 20. we got hints about tariffs from trump a couple years ago. he wants europeans to buy more oil and gas from the u.s. but that barest massively obviously not just on the economy but the other conflicts whether in ukraine or syria. it's a major political issue for the europeans because it prompted so much immigration over the last decade and as trump has said he does not want to be involved in that. this is another theme for the europeans to pick up to say something -- to say nothing of what we have seen, of undersea cables being cut every week. what you need is a unified and strong europe. the hope for the europeans as you get some kind of decisive outcome in germany where you have them a position coming from

strength but there are some obstacles to that. >> thank you for that look ahead to 2025. as you mentioned immigration is a huge issue for europe in 2025 but also fiscal constraints and adding to that is low productivity and that failure to invest leading to vast amounts of lost growth in the european union. france and germany and political crisis and the continent risking more stagnation. that's been the subject of our bloomberg originals documentary. >> the news for europe keeps getting worse. >> the french government collapses, plunging them into turmoil. >> france's political upheaval offered another glimpse at fractious european affairs. >> germany is under pressure and they are striking hard. >> our model is over if we follow our classical agenda.

>> they are now fighting for survival and struggling to keep pace with the u.s. and china. >> pad the european economy grown as fast as the american economy over the past couple decades we would be generating 3 trillion euros of extra income every year. >> that's roughly the equivalent to the total gdp of france being routinely added into the economy put >> we need a digital era economy. >> without that, the region is at risk of being unable to afford to protect itself in a world where security is no longer guaranteed. >> this is a very tense moment for the world and europe is at the center. >> you can watch the full documentary on youtube and on our website. the ceo of lucid motors has told

bloomberg that the company's new electric vehicle has a range of 450 miles, higher than initial estimates. tom mackenzie spoke to peter rowlandson on his plan for a mass-market launch and how they are addressing supply chain challenges. >> we are not here just to make high-end luxury calls. we are here to advance technology that will benefit all mankind and we are doing that by addressing the big-ticket item of building an electric car for a family and that's a function of how big the battery is because the technology enables us to go further with fewer batteries and that means we can do a competitive range with much less than the competition and that will drive costs down and that is our commercial and technological advantage that leads to a profound commercial advantage so it's always been the plan to do air and gravity first and then comes the big

one, midsize, which is scheduled for production in 2026. we already have a factory and we will put that both into saudi and arizona. >> do you think you can get it out before they come through? >> yes. i am not sure what their timeline looks like. let's see. >> given the slow in adoption we are seeing in europe and the u.s., would you consider a hybrid the any point? >> not for us. we are committed that battery electric is the best solution. we think hybrid is the worst of all worlds. >> would you consider a partner in this auto market to share costs and intellectual property? would you discuss that? >> i

would welcome that. we are supplying aston martin for that with our sapphire technology and we are at -- in talks at the moment for such things and it would be lovely if we could supply technology to a traditional card company to help them on their way to sustainability and perhaps we could leverage economies of scale and other aspects of the business. >> any conversations along those lines? >> yes. >> that was the lucid motors ceo. turning to the tech sector. the japanese supplier of chip package substrates used in semiconductors made by nvidia has said it may need to increase production capacity to keep up with demand. their ceo told us exclusively that sales are robust as his

company builds a new can factory -- a new factory in central japan. >> we are receiving more orders and we have capacity for and have not been able to cover all of them. we are planning on starting a new factory next year but it's likely it will only be able to contribute for the second half of the year. since demand is expected to increase more the major issue has to support the increased demand during these nine months. we are currently making preparations for this at our existing plans. we have a long relationship with intel and we have been doing business with them for about 30 years now sir -- so there's no doubt it's one of our important customers. we will continue to support their recovery. >> and other events coming up this week we are going to have the dallas fed manufacturing activity and pending home sales numbers.

tomorrow it is new year's eve and we will have pmi readings out of china. and it is the new year's holiday wednesday with most major stock markets closed. thursday, the manufacturing pmi data from china and the u.s. and friday thomas barkin gives the keynote address so there's a lot of going on. we will have more coming up so stay with us. this is bloomberg. ♪

>> in a dramatic political comeback, donald trump will return to the white house. and if he is going to share the credit for his victory with anyone it is this guy. >> where is he?

come on up here, elon. >> elon musk became one of the biggest political donors in american history. >> this is like a mutually beneficial business arrangement. trump got money and got elected, musk gets sway over the federal government. x this arrangement includes a new role for musk and raises a host of potential conflicts. >> department of government efficiency. >> he wants the federal government to mostly get out of his way. tesla is an electric car company and very much would like the federal government to improve its business in robotaxis and driverless car's. >> he also stands to gain billions. >> he owns a major defense contractor called spacex. the u.s. government is the most

important client. he would like as many more contracts as possible and would like a president who would create a new mars program and hire him to send the rockets up. >> mrs. trump 2.0. > the old rules of conflict of interests may be out of the window here. >> mark goldman on the enormous power elon musk could wield over u.s. policy is donald trump returns to the white house. and you can catch that full documentary on bloomberg.com and on the bloomberg originals youtube channel. returning to one of our top stories, jimmy carter has died at the average of 100 at his home in plains, georgia. his term in the white house was marked by achievements including brokering a peace accord between israel and egypt and economic turmoil at home. david westin takes a look back at his life. >> president carter came to office in the wake of watergate

and vietnam with a commitment to right the ship of state. >> carter brought back to government honesty, integrity and faith in government. he ran as a candidate on a government as good as its people and he truly delivered that. >> i think carter in many ways was ahead of his time in terms of his emphasis, for example, on human rights, in terms of his thinking about alternative energy come in terms of his role in the middle east peace agreements that he put together, and we all know that his ex presidency, which has been a long one, has been graced by remarkable contributions to humanity. i think right now he is seen very favorably. i'm happy to see that because he's a special man. >> one of president carter's

biggest challenges was energy in the face of the second arab oil embargo. >> when he was president during a challenging time, as you recall, there was the oil embargo that drove oil prices up dramatically. that became a catalyst for the highest inflation that we had had really since the war and probably even before that. and so he had to take some very tough fiscal measures. he appointed paul volcker, who by very much tightening monetary policy, caused a recession, which certainly was not an easy thing for president carter to run through. >> he was the first person to talk about energy and how we had to start looking at renewable energy plans and how our country could invest in incentivize in that area and i don't know if you remember but he had a solar panel on the white house, which,

when he left, president reagan took down. he also had fuel mileage standards and really realized way before anybody else that we had to start thinking about climate and what it was doing to our planet. >> as influential as carter was as president, he will be remembered every bit as much for what he did after he left office. >> the thing that is most notable about president carter is we can all debate the relative merits of any individual president's term but i think it's an arguable that carter is the single most impressive, successful and most to be admired ex-president in the history of our nation. this is a man who took the responsibilities of being a visible public figure incredibly seriously and was a role model

to all of us.

>> iphones, the kindle, nintendo switch, even ring doorbells. foxconn is making these and more, assembling the devices mostly in china has allowed them to build an enormous bill this -- in norma's business -- the market for many electronics is maturing. foxconn wants to move up the value chain. ai servers is one area where it's making progress. sales has risen.

semiconductors is another field where the focus now is mostly on older less sophisticated chips. at present these mostly go to in-house needs including electric vehicles. this is additional space for the taiwanese company wants to compete with a value proposition similar to want it once called apple. >> goldman sachs says outsourcing could be worth more than $140 million by the end of the decade but its grandest auto ambitions are yet to be realized. >> that was annabelle droulers

behind the wheel on the ambitions for the company best known for assembling apple. let's look back at the year that was for 2024 when it comes to the dollar. it's been a stellar one for the greenback, it's best to nearly a decade. the spot index up 7.4% so far year to date winning against all the g10 currencies but this kind of strength pretty normal for this period between a u.s. election and the inauguration so the question is whether that will last. of course also feeding into that is the question of what the fed does in 2025 so if we look ahead for mutual central banks outlook for next year you can see that the fed is at the lower end of cuts and when you think about who is the most dovish it's actually the ecb and the rba but

feeding into that will be the inflation picture and we will even get more of a read on that and if we flip over again you can see maybe that work -- that will herald a risk for inflation in europe with cpi re-accelerating. you can access these charts and others throughout the show on your terminal. next, the opening trade with anna edwards and kriti gupta. that doesn't for bloomberg daybreak: europe. stay with us. this is bloomberg. ♪

anna: good morning from london. i am anna edwards alongside kriti gupta. european future said for a weaker open