>> good morning. this is bloomberg daybreak: europe and these are the stories that set your agenda. the uss chinese state backpackers gain access to workstations and unclassified documents using a third-party provider. china denies the claims. and chinese services activity jumps but others gain -- failed

to gain traction. xi jinping will touch on deepening economic reforms in his speech. global stocks are set to notch a second year of gains power by wall street. the dollar closes in and its best year since 2015 while gold surges. good morning and happy new year's eve and what a stunning year it's been for equities. looking at futures all in the red. but a cloud of uncertainty hanging over things as we are in 2025 with donald trump said to be inaugurated on january 20. let's check in on how the dollar is doing and it's been another stellar year as well for the

dollar, fueled by trump's reelection in the fed being less dovish in its policy pivot but the bloomberg dollar spot index a touch weaker this morning, brent trading at $74 a barrel, bitcoin off the highs we saw earlier this year and gold also a touch weaker today but finally checking on asian markets, we have the chinese pmi data this morning, more to come later in the week. the asia pacific index currently .1% weaker and asian stocks set for a quarterly loss as the year end. the hang seng stronger and the yen at .156 per dollar. let's get more on this treasury hack. the u.s. treasury saying a chinese estate back tack or gained access to workstations and classified documents earlier this month and that hack happened through a third-party

provider that also does the work for the defense in justice department so of course usually concerning but china has disputed the claim so let's get more from john harney. he joins us from washington. tell us what we know about what happened here. >> we learned about this from a letter that treasury sent to lawmakers on capitol hill. it was this breach that was discovered by the vendor some time in early december and as you say it empirically involved workstations and according to the treasury, unclassified documents were accessed by these operatives apparently associated

with the chinese authorities. our colleagues report that the danger is over, that the hackers no longer have access to the treasury but many questions remain. what are these documents that were accessed, how did this happen? this company is supposed to be involved in some respects with cybersecurity and as you say also they had contacts with other government departments so just how widespread does this go? >> domestic concerns for the u.s. but i suppose the biggest question is the international one and where it leaves u.s. china relations as we inched toward the end of joe biden's presidency? >> here we have this relationship between two

superpowers, two adversaries. another problem, really and there are so many facets to it. both president xi and president biden seem to be in meetings in november of this year and last year in california eager to step back from confrontation after the impossible spy balloon episode and nancy's trip to taiwan, which led to a great deal of acrimony and questions about the south china sea in fentanyl, which figured in the presidential campaign so there was some easing of relations but this and the typhoon breach, which is separate from this treasury episode involved major

telecom companies and in that case information from ordinary americans was somehow accessed, again, by chinese operatives. >> john harney in washington, we thank you for that update and we can switch focus now to china. president xi jinping said to give his new year's speech today. it is reported he will address economic reforms in the year ahead and also to say the economy grew 5% this year. more from minmin low now. what are traders paying attention to today here? >> it's interesting that we just got the headline with president xi saying chinese has -- saying china has achieved the growth target. perhaps an injection of confidence to the economy.

we know there are still structural issues in the economy that persist and that is a potential vulnerability for the country next year and in his speech he is likely to once again deliver quite a bright report card because this is usually a time for him to speak to his domestic audience and connect with them and show he cares about the daily bread and butter issues of the chinese people. some of the innovations in science and tech, for example. he's also likely to set the tone , perhaps highlighting priorities and investors will be looking for any affirmation he gives around china's prospects for recovery in 2025. >> so we will wait for optimistic mood music later but i wonder is that and the pmi

data we got today exciting enough to stop the calls for more raising from the pboc? >> we got an expansionary reading this month but the manufacturing pmi disappointed compared to the previous month's print and granted there is this seasonal factor but it tends to soften towards the end of the year but it shows some of the weakness especially in domestic demand and you look at the nonmanufacturing pmi and it's a big lead. it is the strongest print since march so that's an encouraging sign especially because of a big source of that improvement is coming from the rebound and construction, picking up to 53.2 concerto contraction of 49 point seven the previous month so could this mean there's a little bit of recovery in the property sector or perhaps companies

speeding up construction activity ahead of the lunar new year holiday and also infrastructure related spending taking hold as well but earlier he looked at the employments of index for the pmi's still well below 50 and that shows businesses are still pessimistic about hiring, which does not bode well for consumer confidence. >> minmin low in hong kong, thank you. great stuff taking us through those numbers. we will also get more pmi numbers on thursday but just to take you through sort of the other data we are looking out for today, we have at 7 a.m. u.k. time turkey's trade balance and 11:00 a.m. latest inflation data and later in the day of course it will be an mercy -- it will be an early close given it is new year's eve. i hope you are all celebrating this evening.

but as things stand we are looking at futures pointing lower for the u.s. session and pretty flat in europe with ftse 100 futures down .3% as we head towards the open. we have plenty coming up. asian markets on track for their first quarterly loss of the year with global stocks powering towards a second year of gains. the uncertainties heading into 2025 next. stay with us. this is bloomberg. ♪

>> welcome back to bloomberg daybreak: europe. we can focus on asian now, where stocks have been struggling for direction on the last day of trading in 2024, heading for their first quarterly loss this year after a weak showing on wall street. more now from paul, our executive editor in singapore.

good morning. i hope you can put your feet up later. how are things ending for asian markets? >> good morning. will you heard that before the break they were talking about some positivity in chinese data, and encouraging comments from xi jinping though not so much in the markets, struggling for traction today and that's really the kind of sentiment we have for the chinese markets. on television earlier i was talking with a u.s.-based investor saying they are not at all in china and it's a hard no on any investment and i think that's part of the problem. confidence in that market is low and we have had many disappointments and people would really need a lot to convince them to come back in. it's a case of winning over hearts and minds. while we may be having a positive year for the first time since the pandemic for chinese

stocks overall that really came in two first spend the rest of the year was pretty flaccid and if your timing was not good you may have missed out altogether. still clouds hanging over china. that spreads over a lot of the rest of asia is markets and these are pretty gloomy looking outlooks still heading into 2025. >> china stocks have outperformed or performed well compared to emerging-market peers for all the skepticism about chinese stimulus so are we being too harsh about china in 2024? >> like i said, if you are looking for positives, there is confidence coming back. we have a bunch of ipos coming up in hong kong that were confirmed today and yesterday so they gives us a little bit of confidence heading into the new year. you have some glimmers of hope in the economic data and signs of stimulus but nothing like the big bang the market is looking

for. so, you know, for all that there have been some gains, timing would have been important. currency would have weighed on that all the same and looking forward to next year there's a lot of worry as well. if we get donald trump coming in in january, already promising sanctions on china or more tariffs and all of the existing blocks to china investing in ships so there's a lot of clouds out there. you would have to be pretty optimistic to think that chinese equities had a good year, certainly when you stack them up against the u.s. market, which was a success all the way through. >> but in light of all the uncertainty you just laid out

for us coming into 2025, which assets are set to perform best and worst from what we know so far? >> good question and without wanting to make predictions i think there is still a lot of optimism around japanese equities, that economy looking brighter. india is a bit of a question at the moment. the economy has been deteriorating. some of that enthusiasm and frothiness has dissipated. people still quite excited about fixed income but the real problem for asia and a lot of the rest of the world is what will donald trump do? will we get inflationary policies and therefore a stronger dollar, higher bond yields, and what does that mean for the rest of the world. all things being equal it would

be a negative for growth and therefore an extra hurdle to surmount outside of the u.s. markets. >> paul dobson. happy 2024. happy new year when it comes. thank you very much. we did report on the death of former u.s. president jimmy carter and indeed stock markets in the u.s. will now close on january 9 to observe a national day of mourning for him. it is part of a long-standing american tradition in which financial institutions halt operations following the death of a president. carter of course died on december 29 at the age of 100. we are looking at futures currently pointing lower as we look ahead to today's session but these are of course thin volumes towards the end of the

year and similarly pointing lower in europe, but coming up, elon musk is looking for policy changes in south africa to expand his starlink satellite network. we will bring you the details next. this is bloomberg. ♪

>> welcome back. we go to south korea now, where the markets are closed but the politics are raging. lawyers for that person says the warrant issued for his arrest is a legal. he's under a criminal probe for insurrection allegations and if executed he would be the first

sitting president and south korea history to be arrested. let's get more with bill. it's unclear whether investigators will be able to even take the president into custody, so i'm wondering what the next steps are in this political crisis. >> right. the lawyers are saying this is an illegal warrant. the opposition of course says the government should get in line, that yoon and his team should get in line and cooperate with the investigation. we have two big steps here. one will be whether investigators are able to or try to enforce this warrant and take yoon in. they have up to a week typically to enforce a warrant. it's not clear what the timeline is in this case, but if that happens, they could be the next showdown. the other big issue is the constitutional court, which has up to six months to review this

impeachment by the parliament, but their next hearing is scheduled for friday, january 3, so that will be the next legal step if there's no attempt to arrest yoon before then. >> as the political turmoil deepens the country is also dealing with the aftermath of a airplane crash sunday that killed all but two of the people on board. we were not talking about korean politics for a moment and/or again now but what is the latest with the investigation? >> well, investigators are looking at a couple things. one of the black boxes recovered from the wreckage, there appeared to be technical issues accessing the data, so they have people working on that. there's also a look at the reasons for that concrete enforce wall at the end of the runway and whether that really

may be should have been there and may have made the situation worse. there is a little bit of a truce in the political sparring right now from both sides as they try to deal with the tragedy and deal with a period of mourning in the aftermath of that accident, but i expect that will disappear in the coming days as this court hearing friday and years and the showdown between the president and opposition over this arrest warrant heats up again. >> bill faries, thank you for the update. bill joining us from singapore. elon musk's starlink satellite network is expanding globally and many governments have been removing obstacles now that musk has taken on this more prominent role at donald trump's side. bloomberg has learned musk has been in talks with the south african president to discuss starlink's internet to operate

legally there. let's get more now. it seems every day we are discussing elon musk. now he wants this deal with cyril ramaphosa. what concessions do you think you will make in exchange for that axis fish you think hewill make -- you think you will make in exchange for that access? >> we know president cyril ramaphosa and musk are having conversations to change laws in south africa to allow starlink to operate legally in the country. it's been growing so much that there's been unauthorized use to an extent that the telecom regulator has issued a warning of up to $270,000 in fines for those liable. the concern is the ownership that should go to historically disadvantaged individuals. elon musk does not want to do that because he things it will dilute the control of starlink.

what is happening now is relevant ministries in south africa are having conversations with regulators so that foreign companies can have access to the local market in exchange for equity. south africa also wants to draw more of musk's businesses. we are seeing the ground softening because, like you mentioned, musk now has a close proximity to donald trump and that's increased his appeal and the appeal of his businesses. >> if donald trump had not won the election and elon musk did not have that relationship with donald trump, how would his businesses have fared in africa? talk us through the expansion of starlink in africa previously in the hurdles it had faced. >> he would have fared just fine. if we take a look at a country like kenya, expansion has been rapid, particularly in counties outside nairobi.

starlink has been strategic. the distribution is countrywide. kenyans can shop while they are shopping for groceries and hypermarkets. you will be told it is easier to install and cheaper than local internet and offers 10 times more speed, so the would have done fine -- so they would have done just fine. operators saying of starlink is to operate in markets like kenya than they have to play by the same rules of local providers. >> i wonder whether we are going to see more resistance to starlink crumbling worldwide after donald trump is inaugurated. what we know about their expansion into ukraine? >> yes. what we know so far is that they will be offering con nectivity and text messaging using starlink in the fourth quarter of 2025, and later we will see data follow.

ever since russia invaded ukraine into could be to, they have been deliberate -- in 2022, they have been deliberate. russia has also been trying and ramping up efforts jamming satellite links and that's broken down communication between the satellites and the ground terminal, so what these terminals are going to do is boost and bolster ukraine's war efforts, streamlined munication within the military and also within the civilian population. >> ok. we thank you for that update on how elon musk's businesses are faring, confident that he would have done well with or without donald trump. let's check in now on assets across the board as we had in -- as we head into this last session of the year. the dollar spot index a touch weaker as things stand but it's been a phenomenal 2024. we have brent trading at $74 a barrel, bitcoin at 92,000, way

off the highs of the year, and gold pretty steady, but if we zoom in to gold briefly, it's up 26% in 2024, it's best year since. 2010 coming up, companies are in the world are scrambling to get ahead of donald trump threatened tariffs on the u.s.'s biggest trading partners in 2025. a look at the trade outlook next. this is bloomberg. ♪

>> good morning, this is bloomberg daybreak: europe. i'm lizzy burden in london. treasury hacked. the u.s. says chinese state backpackers gained access to

unclassified documents using a third-party provider. china denies the claims. china services activity jumps, but manufacturing struggles to gain traction. president xi jingping is set to touch on deepening economic reforms in his new year's speech. and global stocks are set to notch a second year of gains powered by wall street. the dollar closes in on its best year since 2015 while gold surges. a very good morning, happy new year's eve, these are thin volumes and this time, but we are looking at futures pointing a touch lower on both sides of the pond. you have this cloud of uncertainty hanging over the turn of the year as we await the inauguration of donald trump. but if we flip over to the cross asset picture, the dollar has been having a roaring end of the year. the best since 2015 ruled by trump's reelection in the fed's less dovish policy pivot as well. you looking at euro-dollar, a

touch weaker. two year treasury yield of 4.24 percent. japanese markets closed today. print trading at $74 a barrel and bitcoin at $92,000. so, weaker than we had been seeing earlier in the year off the back of donald trump's election as well. but we will see how it fares into 2025. as i mentioned, uncertainty really is the theme as the year turns, especially for global trade headed for a transformation as leaders across the world scrambled to respond to trump's proposed tariffs. we can dive deeper into the economic impact of that potential u.s. protectionism now with bloomberg news editor jill disis. jill, i wonder how businesses are preparing for the prospect of higher expenses, potential disruptions we just don't know whether the second trump administration is going to be a blueprint of the first.

jill: that's right, uncertainty is really the key word here and something we are seeing from a lot of businesses worldwide. we've talked to everyone from german winemakers who are worried that trump could potentially bring back 2019 era tariffs. that's something that they are trying to get ahead of, may be front load orders for her. seeing a lot of concerns over what additional tariffs on chinese goods could look like even though trump signaled his campaign that he wanted to raise levees on china by as much as 16% depending on the goods, lots of uncertainty, especially when you see the trickle over into threats that trump is making not towards adversaries, but allies as well. you just have to look at the comments he made about potential tariffs on canada, it still has president-elect because of his concerns about the fentanyl crisis in border control. this is really petering out into a lot of different impacts where

these businesses are trying to frontload orders, maybe they are trying to find new suppliers, maybe they won't be impacted and they try to renegotiate terms with other suppliers, so it really does just come down to a lot of mess as these businesses just figure out what they can do to prepare for the next four years. lizzy: in terms of mass, are you seeing businesses scramble to get goods through particular so that they deal with this preparation for january 20? jill: there are already signs that we are seeing higher carry through and some of these ports, shanghai, the world's busiest is seeing something like a 30% uptick in activity. you are also seeing ports along the u.s. western coast that are

seeing busier traffic. a lot of this does indicate that there are businesses that are trying to get ahead of any potential tariffs. by doing a lot of that frontloading, that kinda leaves them with a lot of inventory that they are going to have to deal with as a figure out how to navigate all of this. because, as we've been talking about, a lot of these terror threats are very uncertain. it's stuff that we will have to see how much of it actually come through once trump takes office in january. lizzy: bloomberg news desk editor jill disis, thank you for their preview of global trade in the coming year. now to one of our top interviews, blackrock ceo larry fink remains bliss about the strength of the u.s. economy. he said he doesn't like hard or soft landings or talking about them. he was talking to francine laqua at the berlin global dialogue back in october and he explained why that is. larry: the economy is going to continue to grow at two plus 3%.

lending means it goes to zero. i know we use those words, really fun to talk about. francine: it's not going to crash? larry: we are not going to have a hard landing but i don't want to see a soft landing. we will continue to move and navigate it. despite all that, there are segments of the economy that are struggling. segments of the economy are doing really well. we spend so much time focusing on the segments that are doing poorly, i'm not trying to success that's not the right thing to do, but other parts of the economy are doing really, really well. look at earnings for corporate's, they have been very strong and i think they continue to be very strong. we do have segments of the economy that are very strong and i think that's why -- i don't know why we talk about a harder sell lending, we continuing at 2% or 3%. francine: where do the smart money stay away from? are some things price to perfection or it's too risky or

we talk about commercial real estate? larry: you mention commercial real estate purity see too much money moving into one area then it runs away from it. i think that's what markets do. we checked the outer boundaries of pricing and it becomes may be a level that we don't find. then money moves to another destination. i think that's the natural movement. i'm not worried about one area versus another. one other thing that i think everybody asks me is, the market is so pricey yet all these geopolitical issues. i would argue today, because of the expansion of the global capital markets, we are diffusing more risk than ever. there is less systemic risk than ever before. you mention private credit, it's matching a liability in an asset together. it's not leveraging 8-1 light in

banking. that's a good example of diffusing some systemic risk. but as more and more capital is broadening out how they invest, where they invest, that reduces less concentration in one area. of course we've seen, especially in cities, a decline in commercial real estate. that's a natural process. but there's nothing systemic about it. you may lose money on one building, but you are moving into other destinations like data centers. you are moving into different cities with rising population growth. you can't fight demographics. some cities are shrinking. commercial real estate will be declining with the declining population. francine: what's your play private credit? how much do you want this? larry: we have large aspirations that we continue building at a private credit area and there's more to come. we are very excited out -- about our position. just specific about the role of

infrastructure debt. rating $30 billion of equity, we will have 100 to $120 billion of debt associated. so i actually believe as we move out and build up more and more infrastructure investing, you will see more infrastructure or private credit associated with that, so that will represent a great opportunity for you have a hyper scare like meta, microsoft, amazon where you have their credit and you can leverage it up and provide returns. stable returns over 15, 20 years. that's what those leases will be in these data centers. you have a great opportunity for long-term investment. lizzy: blackrock ceo larry fink speaking to bloomberg in october. just to recap the other stories making moves. u.s. president donald trump has endorsed speaker mike johnson to

avoid a crippling leadership fight in the house. elon musk has become a close advisor to trump. the house is set to hold its vote for speaker on january 3. both russia and ukraine have said they exchanged 300 per leaders -- prisoners and it's one of the biggest deal since the start of the war. next up on the program, we will talk about the cold snap facing europe in january. it looks like it will be sold in edinburgh. this is bloomberg. ♪ ♪♪ ♪ three little birds ♪ ♪♪ ♪♪ ♪♪

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>> aging reactors, energy prices, disasters. nuclear power has been falling out of favor in the u.s. for decades, but the conversation is changing. the intensifying threat of global warming and the explosion of ai is boosting the outlook of

nuclear energy. this is an inflection point. more than 100 nations have set lofty nets zero targets, forcing the world to weigh the inherent risks and high costs of atomic power, which has no carbon emissions, that includes the united states. >> the climate change moment is upon us now and we need to meet that moment today and decarbonizing our grid. >> nuclear plays a significant role in fighting climate change. it is already the largest source of clean electricity. >> experts say the upswing in nuclear power plant construction needs to continue, to both meet net zero emission goals by 2050 and to help smooth the world's transition to renewable energy. >> so it's been an extraordinary change from when i grew up in small-town illinois to seeing this renaissance. >> especially for someone who's been in the industry for a while. we went through this time where

the nuclear renaissance phrase got thrown around a lot and it didn't come to fruition. i will say i'm very optimistic. lizzy: that was our bloomberg originals team looking out why nuclear energy is making such a come back in the u.s. and across the world. staying with energy, parts of europe could be set for a colder than usual january, boosting demand for natural gas just as the continent confronts the end of a russia-ukraine pipeline transit agreement this week. we could speak to bloomberg's priscilla about this now. cold snap looks to be on the way. how close is that going to take us to the brink in europe in terms of gas reserves? priscilla: good morning, the situation this year is looking quite sensitive. we are seeing reserves being depleted compared to previous years.

we are now at 73 percent only compared to 86% at the same point last year. and why do we care about it? for the past two years, since europe's energy crisis, we have relied heavily on gas reserves to keep on navigating the cold snaps that the regents eventually faced. when russia cut most of the supplies to germany. lizzy: and by the end of today we should know whether, when it comes to the halts of russian natural gas to ukraine, whether there will be no deal, no gas flows, no deal, some gas flows or a deal reached on gas flows continuing. what's looking likely? priscilla: if previous times are any guidance, we won't know until the very last minute. what is different this time around is that we are going to the third war -- the third year of russia's invasion of ukraine. so the situation is a little bit different. strategists in wall street, goldman sachs, morgan stanley,

j.p. morgan, they all have christ in a no transit deal heading into next year. but we won't really know, anything could change. the first indications we will get, it's around 5:00 p.m. london today, which the nominations are in order. which shows us if clients in europe have gas from russia. this is the first tangible sign that we won't know until tomorrow morning if gas actually came to europe. lizzy: in terms of how that feeds back into the war, president zelenskyy has said repeatedly he won't let russian gas, which funds the gremlins war machine, transit through ukraine after this deal ends. so then is it inevitable that the gas pipeline is going to be -- become a target if it stops? priscilla: we have seen throughout the war that there is see infrastructure but the

pipeline has been scared the whole time. it has been almost three years since a full-scale invasion in this pipeline. we can say for sure what's going to happen next, we still don't know if those will continue or not. but this pipeline no longer carries russian molecules through the continent it will inevitably become a target. >> we thank you for that as we look ahead to that potential deal. in other news, billions of dollars are being invested in artificial intelligence, including five big tech despite concern about a lack of return on investment. co-founder of faculty describes this as the ai paradox and has been speaking to our very own tom mackenzie about the unprecedented surge of interest in ai. >> despite billions being poured into ai, the value for enterprise remains low, and we are changing that as europe's

leading specialists, we provide ai systems that helps organizations makes better and faster decisions. and over the past decade, we have delivered some of the most nationally and internationally impactful ai solutions. for a decade of thought leadership in ai and ai safety, including being the first to introduce president biden to deepfakes where the reason that theresa may, the prime minister made the company take down their terrorist propaganda within two hours and with the company that has helped save thousands of lives during covid. tom: that's quite a pitch. you did have that government contractor on covid. so there may be some efficacy there that came through in terms of the distribution for the covert health requirements that were needed. is it a complicated environment if you are the cfo of an enterprise and you are looking

at how you spend and integrate ai? there is multiple different models you can choose from and applications you can choose from. how do you work with enterprises to navigate that, and how much integration are you seeing right now? >> what's really important is not thinking about what's the model, but rather, what's the business problem. in first, with the business problem, then, what's the technology and what is the processes and the decisions that drive that business kpis. from there you can figure out the technologies, than the data, but everything flows from what's the business problem. lizzy: that was angie, founder of faculty ai speaking to bloomberg's tom mackenzie earlier this month. now to a u.k. tradition, the new year's honest list. former hsbc ceo noel quinn was in the list this year.

his five year tenure as head of europe's biggest bank came to an end in september. in other notables recipient includes england's men's football team manager garrett south gate who guided the team to the european championship this year. well, looking at the cross asset picture, you have got the bloomberg dollar spot index pretty steady as we head towards the end of the year. it has been a good one in 2024. we have plenty more coming up for you on the program. this is bloomberg. ♪

lizzy: welcome back to bloomberg daybreak: europe. investment management firm new century advisors is warning traders in the fed can't take the labor market resilience for granted. chief economist claudia told us more about potential blind spots of the economy in 2025.

>> if we can keep it as it is now coca-cola it could be a great year. we have been surprised how well the past years have been. especially if you think about growth and how consumers have held up. that doesn't have to keep going. what we really want people to focus on are the blind spots. what could go wrong, where, who is in getting enough attention? i think one area, if i had to appoint some fed officials to the blind spot, they showed a lot of complacency in their last summary of economic projections on how well the labor market would continue to hold out. what we saw them write down, the typical official, was something that basically has unemployment rate sticking where it is right now for the next three years. it's a pretty remarkable and frankly, not -- very unusual path and labor market. and yet, there are all kinds of

concerns around inflation and the uncertainty around inflation. i'm still concerned there are things in the labor market. , while good, don't quite look sustainable. that's where the problems can come in. >> that's when you think -- if i ask, which is a bigger risk, weaker labor market or stubborn inflation you're going with the former rather than the latter? >> inflation is fine right now, we are not far from 2% in we are getting to this last mile on inflation. the labor market -- >> that's before we support millions of workers, that's before donald trump comes into office. things could change drastically after january 20. >> absolutely, they could change drastically. i think it's appropriate that we have had a very deep conversation about the policies that have been put on the table. there have been a lot of policies put on the table and it's important to have this conversation and talk about the

potential pitfalls and maybe we won't see all of them put into place, that probably would be a good thing for the economy. yet, kind of taking for granted the good stuff that we've got going in the economy that's a little more nuts and bolts, like the labor market functioning and just saying, that will just keep going. that's all fine. that could be a real mistake. the labor market, in particular, is always and has been the past few years, such a linchpin to this amazing time of disinflation, growth has stayed strong and unemployment has stayed relatively low. and that's something that we want to keep going. lizzy: inflation is fine, you heard it there from new century advisors chief economist speaking to our colleague matt miller. let's see them in 2025. these last few moments of 2024.

let's take a look back at stocks for france through this year. of course it's been a year of political turmoil for them to battle through. as you can see here, it has underperformed the european benchmark, the most since 2010, which looks even more and -- if we flip the board and look at the u.s. picture this year. you can see u.s. stocks are set sat have the biggest outperformance compared trest o. but if we flip again and look at 2025, maybe you will find a bit of opportunity here in the u.k. we are in the bargain basement. we do not have the big tech offer, perhaps on the ftse. but we do have cheap equities, and that is both absolutely and relatively as you can see in this chart. all of these charts are available to bloomberg terminal users on the terminal. you can also find the others used throughout the show by going to gtv .

anna edwards and kriti gupta are here for the next hour, the next couple of hours of bloomberg tv with the opening trade, that's it for bloomberg daybreak: europe. i wish you a happy new year. this is bloomberg. ♪ i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

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>> >> anna >>: good morning from london i'm anna edwards alongside kriti gupta. one hour away >> from the opening trade. >>china's chief said the country's gdp grew around 5% in 2024, signaling the world's second-largest economy is on track to meet its official target. the u.s. treasury said it experienced a major cybersecurity incident. the agency