tom: israel and hamas agreed to a cease-fire. it will begin on sunday and last

initially for six weeks. the deal includes the release of 33 hostages while israel will withdraw from populated areas of gaza. risk on returns. u.s. inflation sparks a global rally with asian stocks tracking games on wall street and japan. bloomberg understands boj officials see a good chance of a rate hike next week. we bring you our scoop. earnings season gets underway as tsmc posts a big beat on next income. four of america's biggest banks see their second most profitable year in history. we look ahead to the numbers from morgan stanley and bank of america later today. we talked about the bank earnings story. earnings coming through from the luxury group right now.

third quarter sales at a constant fx level, up 10%. well above the estimates. this is a stock that's up around 35% over the last 12 months. the jewelry division has been relatively resilient to the slow down in luxury spend in china. china of course in focus for this company. that division has been under pressure but it's a beat in terms of the earnings that come through. the sales numbers for the third quarter. just breaking it down in terms of the topline number. then we go regionally. sales were the third quarter coming in at 6.1 5 billion. significant beat in terms of sales. the estimates had been for 5.6 billion euros of sales. in the americas, revenue up 22%. in japan, gain of 19%. in europe, 19% as well. well above the estimates in europe.

you've seen an expected increase of 6% in terms of revenue. the actual number coming in at 19% as the increase in revenue for business will be a stop to watch. jewelry and watchmaker. we expect in terms of renault sales as well. group vehicle sales for the french automaker up 1.3% versus 2023. we keep an eye on renault as well. that stock has been question. it's actually up around 40% over the last 12 months. vehicle sales up 1.3% for renault. that's a year on year number for that company. let's get to the markets right now. it is risk on, given the soft cpi print we had out of the u.s. yesterday. yields on the tenure dropped around 15 basis points. to what extent will this be a prolonged headwind or tailwind

for the equity space? european stocks taking a breather after rallying more than 1% yesterday on the more benign picture in terms of inflation out of the u.s.. futures pointing down by three tents of 1%. gains of 1/10 of 1%. s&p futures coming through yesterday. currently flat. the s&p at 120 percent. nasdaq 100 looking to lose 32 points after gaining 2.3%. the biggest rally since trump's election. let's flip the board and have a look at what's happening in asia . the handoff is there in terms of the case that have come through on the msci asia pacific. the csi 300 looking for the next catalyst there. currently flat. the nikkei in focus on the bloomberg reporting around the boj looking potentially to hike next week. the nikkei up just shy of two tons of 1%.

cross asset. let's flip the board. big move into treasuries. yesterday, yields came down. the bear market around the global bond selloff coming to an end. is this temporary reprieve in terms of government borrowing costs? the pound continues to be in focus. under pressure in the session. we did have a better picture when it comes to inflation out of the u.k.. 122 on the pound. bitcoin closing back in on 100,000 at 99 383, benefiting as well as expectations that the fed could cut fully priced now for july. the cryptocurrency down three tons of 1% in the session. let's get to geopolitics. israel and hamas have agreed to a cease-fire deal in gaza. it pauses 15 months of fighting that's killed thousands of people and caused widespread destruction. the three phased element, an agreement will take effect on sunday. it includes the release of 33

hostages held in gaza and israel's withdrawal from populated areas in the strip. >> 700 days of failure and one day of success. we've had many difficult days since hamas began this war. we've encountered roadblocks and setbacks. we haven't given up. now after more than 40 -- 100 days of struggle, success has arrived. tom: what more do we know about the deal? how confident can we be that it will actually take place on sunday? >> well, the deal is done which is a very positive step for the region after more than 14 months of conflict and many false starts. there have been several rounds of negotiations over the course of the summer. several false starts. we thought we were close to getting a cease-fire deal

towards the end of the summer last year. of course, that all massively reversed. now there's a deal that's been agreed to as announced by the u.s. and buy qatar yesterday. the qatari prime minister playing a huge role in these mitigation talks, making a statement yesterday to the effect of what the deal actually contains. it's important to note that what has actually been agreed to is phase one out of the three phase cease-fire plan. phase one is known as the humanitarian part of the cease-fire deal. it will entail the release of 33 hostages being held in captivity. some believed to be thought dead, in exchange for palestinian prisoners. it will allow for the passageway of aid into the gaza strip. much-needed with 90% of the population facing acute food poverty. it will also entail israel forces moving away from the central part of the strip towards a buffer zone and allow for the internal movements of

displaced palestinians from the southern part of gaza back into the northern part. all of those elements have been agreed to. the more challenging part is what happens next and how you transition from phase one to phase two which is a more permanent cease-fire and the release of the rest of the hostages in exchange for even more potentially. again, very contentious topic. the release of palestinian prisoners as well. how we get there will be a big question. whether or not israel is willing to offer further concessions in terms of withdrawal and how much presence they want to maintain in the gaza strip. that will be a subject of discussion. they say by the 15th or 16th day , they need to start talks vis-a-vis phase two. we do know that phase one is going ahead. this marks the end of bloodshed but possibly not the end of the conflict. tom: president trump has taken claim for getting this deal across the line.

how big a role that he and his team actually play in this agreement? >> you could say he actually played quite a big role. back in december, you may remember that trump set this. all hell will break loose if the hostages are not returned back home before he steps into office. so it's been a big focus. he has said consistently even on the campaign trail that he wanted to see this deal done and dusted before he stepped into office on january 20. so in the past couple weeks, we have seen a bipartisan push. it hasn't just been the biden administration negotiators, the secretary of state, jake sullivan pushing discussions. also the trump middle east envoy came to the region as well. he met with qatari officials but also with the israeli prime minister netanyahu himself on the day of sabbath. he came with the strong word message to the israeli government saying, trump under

no conditions, no situation wants to see this cease-fire discussion being dragged on any further. it certainly does appear as though the trump administration did give that extra push that was needed to get it across the line. it's also relevant because if you want to think about the longevity of the deal, it's important that the u.s. continue to support what's going to happen vis-a-vis phase two and three. the fact that the trump team feels ownership towards it suggests that trump will have a vested interest in the deal being successful. tom: joumanna bercetche on this historic deal with questions that still remain as we look ahead to sunday and the first part of the deal coming into the place. on the ground for us covering all of that in detail. now to the macroeconomic policy, switching focus right now. the december reading of u.s. inflation rose by less than expected, igniting the best cpi

day for the equity market since 2023. the core consumer price index increased 0.2%, marking the first step down in six months. chicago fed president austan goolsbee says he's optimistic about taming inflation without sparking an economic downturn. >> the trend continues to be improvement in inflation. i'm still optimistic for 2025 that we can continue to grow and have a soft landing. tom: ok. let's bring in --. we are hearing about a soft landing scenario. how are expectations around the fed's next steps altered and changed in light of the inflation data we got yesterday? >> there's a lot of market optimism out there that the fed's easing cycle isn't done just yet. that cool cpi reading really

igniting this optimism that we could still see those two fed cuts during 2025. the fed's base case. there is speculation out there that that could come again as soon march. it's going to put to bed the fears that the fed would raise rates this year, at least for now. it ignited a rally in the treasury market as well. those yields coming down near double-digit basis point moving the treasury market. that bond rout is over at the moment. it did ignite a further rally in the gilt market as fears about u.k. government being put to bed for now. looking ahead at least for the treasury market, we have u.s. retail sales numbers coming in at 130. we heard the treasury secretary picking up from trump. he has his senate confirmation hearing later today. we did get his statement where he said that trump has a generational opportunity to unleash a new economical the

names for the u.s.. he warned that the u.s. should protect its critical international supply chains. he did critically back up u.s. needs to protect -- needs to ensure that the u.s. dollar remains the world's reserve currency. tom: we also have the bloomberg scoop around the boj thinking ahead of its decision next week. seeming to edge closer to another hike. >> we say leanne have two days of strong gains. now it is strongest in over a month. the bloomberg scoop on the bank of japan says that this good chance of a january hike would come if the markets are called heading into the bank of japan decision. the bank of japan's decision is next friday, five days after donald trump takes office. as long as we have call markets during the week next week, the bank of japan hike does seem likely. tom: thank you very much indeed.

looking through the market context on the back of that inflation data. valerie tytel, thank you. turning to earnings news. tsmc's profit in the december quarter topped estimates with a 57% rise. the earnings call has just kicked off. annabelle droulers is tracking all of this for us. another strong picture in terms of the numbers coming through for tsmc. it seems a lot of that is driven by the ai demand. what stands out to you in terms of the numbers that we've had from this company? >> what's really standing out as we've got the earnings call that just kicked off and we are hearing about the expectations for the first quarter and they are strong which is great news. for anyone that's invested into this ai theme. talking about the numbers themselves. first quarter sales expected to be between 25 to $25.8 billion. the estimate had been for 24.4 3 billion. gross margin better than

expected at 57 to 59%. the estimate had been for 56.9. to put it in context as well. tsmc's longer-term expectation around the gross margin is for it to be around 53%. by their own metrics, they are doing better than expected. it goes back to that growth story. when you drill down into the fourth quarter numbers as well, which came in better than expected, three quarters of the revenue is coming from seven nanometer chips and above. their most advanced technology. that does speak to continuing demand that we see that translate into the plans. 2025 has dropped as well. 38 to $42 billion. the estimate had been 35 billion. they are continuing to spend in this vein as well. lots of commentary dropping now. we have a blog underway. if you are interested, you can get more details from our

reporters and editors that are tracking this right now. stephen: -- tom: ok. zeroing in on that number and rightly so in terms of the indicator around the confidence that tsmc has going forward in terms of demand for the chips and their producers. up to $42 billion for 2025. thank you. coming up, look at earnings for the banking sector. u.s. banks reporting some superlatives around the banking earnings story. they close out the biden arrow with a surge in profits. the details, next. this. ♪

>> we've been hiring across the businesses in areas that we want to grow while we get more efficient. generally that's in client facing roles across the commercial bank, the investment bank, capital markets as well as

wealth management. >> we believe it's our responsibility to continue to press for more transparent regulatory process in order to foster a more efficient financial system that supports growth and competitiveness in the u.s. economy. tom: wells fargo cfo and goldman sachs ceo both speaking after their earnings report. four of the biggest banks in the u.s. have now ended the biden air on a high note, notching their second most profitable year on record. for more, let's bring in charlie wells is been following all the earnings story for us. what is the outlook for the rest of the year? >> i think cfo of jp morgan jeremy barnum put it best yesterday when he said animal spirits have returned to the sector. there is so much optimism. there is a hope that m&a activity will pick up on one side. there's also a hope that rates might play ball here.

they are headed down but they might be headed down in a slow and slightly more predictable pattern. that could be good on the deal side but also good for the net interest income side where you've still got some of those rates providing that revenue on the lending side. tom: really interesting. arguably a sweet spot on rates for the banks for now. you've touched on this for us yesterday. recent shakeups in terms of the management of these top u.s. firms. let's take a listen to what jamie dimon had to say about his own position at jp morgan in the near future. >> i do love what i do. i will be 59 in march. it's the rational thing to do. i've had health problems, you know. it makes a lot of sense. tom: jamie dimon has long been in the spotlight in terms of succession plans, when he steps down. he's made a joke of being five years down the line. is this jamie dimon finally putting his foot down?

>> this was one of the questions that loomed over this week. came into the spotlight before the earnings were announced. jp morgan announced that coo and president daniel pinto would be retiring at the end of the year. jen pip sacked would be named the coo position. doesn't want to be the next ceo. diamond has been at the head of the bank since before the iphone was invented. it's been a really long time. he's turned it into the country's largest bank. it's just difficult because he is such a figure in the industry. there was a joke about, five years more. he told investors in the middle of last year that that timeframe had changed. yesterday during the earnings call, he talked about how there are candidates that the media analysts may know about, there may also be one or two that they don't know about. a little bit of building suspense there and adding to some mystery.

this has been one of the biggest questions of the week. tom: this story will continue to fascinate in terms of the succession plans at jp morgan. three out of their five main units had record revenues. yet it seems they are looking at job cuts. >> they announced $20 billion in share buybacks. they are in the middle of a turnaround. they've been talking about implementing new technology and trying to be more efficient. that tends to mean layoffs. they said that they will be earmarking $600 million for severance payments. that comes with layoffs. that's lower than what they had last year when they slashed 10,000 jobs. management had said that is part of this turnaround, they want to cut 20,000. we've got 10,000 left. we know what that means. potentially layoffs. tom: potentially more layoffs. jp morgan. at the bank since before the invention of the iphone. we've got more big numbers later

today. thank you. coming up, president biden makes his farewell address. we bring you that story and around above the other news we are following. that's next. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak europe. president biden has delivered his final farewell address from the oval office, listing his achievements over the past four years while also voicing concern about the future of the u.s. the president said he worried about the consequences if wealthy americans use their influence to win tax breaks or rollback efforts to combat climate change. >> i want to warn the country of some things that have given me great concern.

this is a dangerous contradiction of power. in the hands of a very few ultra-wealthy people. the dangerous consequences if their abuse of power is left unchecked. today, an oligarchy is taking place in america of extreme wealth, power, influence. it threatens our entire democracy, our basic rights and freedoms. tom: bloomberg has learned that canada has drawn up a list of 105 billion u.s. dollars worth of american goods that it would hit with tariffs if donald trump imposes levies on its northern neighbor. our source says the list will only come into play if trump moves first and may be expanded later depending on what the u.s. does. hindenburg research founder nate anderson says he is shutting his shortselling firm, famous for targeting billionaires got some

adani, jack dorsey, and carl icam. anderson says there is no specific threat, health, or personal issue behind the decision. he says he now views hindenburg is a chapter in his life, not the central thing that defines him. let's check in on the asian markets right now. getting a lift from the risk on sentiment we saw towards the end of the wall street session when the nasdaq 100 gained more than 2%. the s&p rallying as well. up 1.8%. that handoff has been felt in the asian markets but also the earnings come through from tsmc, giving a lift to the chip companies enter providers. some within the ecosystem benefiting, given the very solid numbers coming through from tsmc in taiwan. the msci asia pacific, the broad bench mark across the region. gains of nine tens of 1%. csi 300 is now up to tens of percent. in japan, than ak k gaining

5/10. some of its chipmakers, equipment makers benefiting on the back of the blowout numbers coming from tsmc. that index up five cans of 1%. the bloomberg scoop around boj officials now edging closer to another hike next week after that monetary policy decision for the boj and the yen gaining two point -- to tens of 1%. coming up, traders are back to fully pricing in a fed rate reduction by july following the u.s. inflation report of yesterday. we speak to raymond james about how to think about a more

tom: good morning this is bloomberg daybreak: europe. i'm tom mackenzie in london. these other stories is that your agenda. israel and hamas agree a cease-fire will begin on monday and last initially for six weeks. the deal includes a release of 33 hostages while israel will withdraw from populated areas of gaza. risk on returns calling u.s. inflation sparks a global rally with asian stocks tracking gains on wall street. in japan boj official see a good chance of a rate hike next week. we bring you our scoop. a holiday surprise. sales jumped 10% with the u.s. driving earnings at the -- the earning story in focus, but it's still in the adjustment of these markets around a softer inflation print out of the u.s. with yields falling by 15 basis points on the 10 year. european futures turning

positive pointing to gains after a solid session for european stocks yesterday. part of the upside will come through on the back of the numbers from the likes of the tech space. the semiconductor foundry owner tsmc meeting and looking low in terms of the demand outlook for 2020 five. ftse 100 pointing to gains. s&p futures after a rally in one .8% yesterday. the best days since the election, the reelection of donald you're looking to gain. nasdaq 100 futures rallied more than 2% looking at their dew point spirit let's have a look at the treasury story in the yen on the back of the boj report. you have seen significant moves into treasuries. today is stabilizing at 465 on the tenure. 122 on the pound. sterling under pressure again down .2%. print trading up. and bitcoin closing in on $100,000 once again up .1%.

returning to our top story, israel and hamas have agreed to a cease-fire deal in gaza that will take effect on sunday. it pauses 15 months of fighting that has killed thousands of people and caused widespread destruction. but it is a fragile reprieve. the conflict has left israel's enemies across the middle east reeling. let's get more with bloomberg's horizons anchor joumanna bercetche was in dubai and has been following the story for the last 15 months in detail. what do we know about the deal and how likely it is to lead to a permanent cease-fire? joumanna: tom, this is a moment that many in the region have been waiting for. the conflict going on for more than 14 months, 15 months of conflict in several attempts to get one of these cease-fire deals across the line as we saw at the course of the summer with many false starts. this time around the cease-fire deal has been agreed to as per a

statement put out by the qatari prime minister yesterday. he gave a press conference alongside statements from the u.s. both president biden president-elect trump should be noted. in terms of the deal itself, what we know about it is it is very similar to the initial by an proposal put forward in may of last year involving three phases. phase one is known as the humanitarian phase that would allow for the release of 33 is really hostages. some of them thought to be dead -- thought to have died in captivity, but those will be elderly children and women in exchange for palestinian prisoners. and it will also entail the huge upsurge in humanitarian assistance in a that's necessary in the gaza strip with nine out of 10 living in this state of acute poverty. it also entails idf joined away from inside of the gaza strip. also allow for the return of

many of the displaced civilians from the sun and of gaza strip. all of that was agreed to. but it should be noted that the second phase of the deal likely to prove to be hairier because of the nature of what is to happen. at first israel has said that it would not fully withdraw from the gaza strip and there's a full release of hostages. hamas would like to retain authority and governance in the gaza strip, but this is a point that israel will not agree to and neither is the international community, the u.s. and arab states are not inclined to want to see hamas govern the gaza strip in the future. the third phase of the deal, if we get there, is the reconstruction phase of gaza. again, that question about future governance. again, a lot to get to. what we do know, phase one has been agreed to. it puts an end to the bloodshed. but questions still remain about the longevity of the deal and

whether it could lead to a permanent cessation of hostilities. tom: what is the expectation that netanyahu can get this through the israeli government? we talk about these right wing members. there's right wing and then there's right-wing. they are extreme right wing. they have come out and scuffed the previous deals. they have had a role in it. joumanna: the israeli government will be voting on the deal. the expectation is that it will pass but with vocal opposition from the likes of the national security minister, who just mentioned, who not so long ago told everybody that he was responsible for the initial attempts of getting a cease-fire deal over the course of the summer. he does not want to see israel and hamas come to a cease-fire deal. there was also equal amounts of resistance coming through from the finance minister but in the end it seems as though there is

going to be a enough support from even opposition lawmakers within the israeli government to get this deal across the line. there's a lot of public pressure. many of the families of the hostages have been waiting for months now to see the release of their family members and there have been many demonstrations calling for an end to the war. the public pressure is there, but then you have to take into consideration the american pressure that has it applied not least coming from the trump administration and a lot of the credit is being given towards trump and his team, his middle east envoy. steve was there trying to push to get this across the line. given that he steps into office on january the 20th, you would want to think that going forward it is going to be important for the longevity of this deal that the u.s. itself has thrown its support behind it and therefore the support of trump and the

fact he feels ownership towards it will be crucial in the coming months. tom: that pressure has not been insignificant coming through from the incoming trump administration. bloomberg horizons anchor joumanna bercetche, thank you. the december reading of u.s. inflation, switching focus, rose by less than expected igniting the best cpi day for the equity markets since 2023. the core consumer price increase increased 0.2% marking the first step down in six months. let's get more of the market reaction and pushing out into the rest of the year. i am joined by the global head of private capital advisory at raymond james. thank you so much for joining us in the studio. we have seen a reversal in terms of the mood in the sentiment across these markets. even european futures are pointing to gains after a solid day yesterday. inflation bump is out of the way. at least for now. on some metrics nearing story, a look at the banks or luxury space.

was the last few weeks, the start of the year the wobble we have seen in these markets on high yields, is that now in the background? >> i don't think it's in the background, i don't think we are out of the danger zone when we look at the rest of 2025, i think it's a reprieve for how long the earnings season is off to a good start, so if it holds up, we have the equity markets having more rallies. however, there is much downside is there is upside, given where u.s. equities are today. the volatility story continues, do we have a reprieve, yes, for how long, to be decided, there is risk that the fed is on pause. there's also risk the fed might hike in 2025 of the picture remains volatile on the cpi story. great print yesterday remains to be seen. tom: you haven't taken that off in terms of potential outcome, you haven't remove the idea that the fed could hike this year despite the more demonic --

benign picture we've had on inflation? >> it's hard to think about a zero hike situation. is it a low probability, yes, can you put zero on it, no. fiscal term stimulus from tax cuts and of the new administration, whether inventory levels and whether it's tariffs. all of those have to be juxtaposed to productivity gains at the u.s. markets incredibly productive. the labor markets are very resilient. these are all in the balance. depends on which way we fall. it's hard to take anything off the table. tom: is it as good as it gets for the u.s. dollar? >> it's as good as it gets with some upside in the downside. he strong dollar create lots of issues around the world. i think we will see the effects of those in some emerging market countries. however, we are at the peak picture unless we take about a hike further down the line. tom: how are you thinking about

the yield story, is 5% and above on the u.s. ten-year a cap on the earnings story or the equity story in terms of the rally that we've seen? is that a natural camp given the risk premium, or do you see buyers coming in and giving pressure relief on that front? how concerned are you about five plus percent on yields? >> five plus percent on yields is a bearish picture. some would say you don't know why yields are going higher, it could be going higher because of productivity gains. putting that to one side because that is the great unknown will put a bearish pressure on equity prices. seeing a repeat rule has been welcome news for the equity markets. i think what we are seeing with the volatility is not just about the mag seven's anymore. 493 has to perform as well, so does the ftse, sodas euro stocks. unless the earnings good news

comes through it's hard to see how you don't have a volatile picture around equity. tom: do you think earnings expectations are looking stretched? >> in terms of guidance for this quarter, people feel like it's good news. more good news coming online that will ease up the markets. how does a paint the picture of the back half of the year, that's an unwritten story depending on tariffs and inflationary pictures. tom: what do you say to your clients when they ask you about the u.k.? you advise getting any exposure to u.k. assets? >> two sides of a coin, on a relative basis, u.k., perhaps italy looking like the most stable political stories we compared to germany, france, at least we know what the future from a macro stability perspective looks like, you could price that, on the flipside, as i'm sure we've all

discussed, it's looking tough for the fiscal side. this budget has been a very disastrous one when it comes to businesses, bond yields and thinking about confidence in the u.k. economy, stagflation risk with cpi print has been put off the table for now, will it come back, there's a risk for that. you seen things yield. a risk pops back up. tom: our economist sees a hundred basis points of cut from the bank of england, does that seem a stretch or is there a kabbalistic effect for u.k. equities? >> could we get up to 100 basis points, absolutely. you can derail that when we see inflationary breakthrough coming through on the budget. no one knows where the trump tariffs pressures will be on this economy. tom: what is the trump tariffs play at this point, trump tariffs hedge or trump tariff opportunity?

>> all the signal so far that it will be a gradual leg into it, they won't go full steam ahead, day one, depending on how much and in what country, that's how you might want to think about the equity story of that market, thinking about globally diversified stocks, stocks are interest rate resilient will stand you in good stead. tom: always appreciate getting your analysis and few in terms of how to think about the weeks and quarters ahead, global head of private capital advisory, not taking off a hike from the fed off the table, still a probability, small but still a chance and equity estimates in terms of the earnings story looking a little rich. other stories making the news. the institution of chartered surveyors is warning the u.k. housing market is facing a significant headwind due to elevated government bond yields

which took a move lower yesterday, which could impact home sales. the number of market appraisals fell to its lowest in one year and property surveyors have scaled back expectations of home sales and supply. bloomberg has learned that hong kong is said to be exploring options to raise taxes on top earners for a second ear. officials are looking at increasing the 16% rate for people earning more than 5 million hong kong dollars or lowering the threshold for the highest tax brackets. sales jumped by double digits as consumers splurge on the swiss luxury firms cartier products. details are next. this is bloomberg. ♪

tom: welcome back, its earnings season, let's bring you details around luxury space. sales unexpectedly jumped by double digits during the holiday shopping season as consumers splurge on the swiss luxury conglomerate cartier products. bloomberg's angelina may have been one of them and has the details. thank you for joining us. top line very good numbers coming through defying those who are wringing their hands about pressure on the luxury space. strong results, what numbers stood out to you? >> overall, the numbers were very positive, sales were up 10% on the quarter, the most impressive performance was probably from the jewelry. they were up 14%, the market was expecting a gain of 4%, so that was outperforming.

it shows you the strength of these brands, the desirability that they have and also, what was very interesting is that the segment that had been struggling for a while was still in negative, but much less than expected. tom: we are showing some of the watch us right now, iwc is one of their businesses, i can't get enough of these watch pictures. what about the geographic picture, we know china's under pressure, what about the rest of the world? >> china continues to be a drag down 18% on the quarter, but overall, asia-pacific was down less than expected. the impressive results were driven by the americas and europe up by more than 15%, both of them. in the americas we can suspect this is their last quarter of the year, this is the holiday shopping season when people splurge for christmas gifts.

it was interesting because it came after the u.s. elections and typically that's what people have said. generally in luxury people are waiting for the results of the election and what's the elections are out in the uncertainty is out of the way, they start spending again. in any case, remarkable performance overall. tom: you cover the broader luxury space, is it a tell about what's happening more broadly in lecturers as a company specific story? >> it's a very resilient company and activity in times of uncertainty, hard luxury, so jewelry tends to do better because the items are more time this and less trendy. so i don't think we can apply this for the rest of the sector. at the end of january we will have the results of lvmh.

lvmh is more exposed to self luxury, that's handbags. they do own tiffany and bulger he liked shirt -- like tiffany watches, but overall, we will see how louis vuitton has performed. we got there ready to wear this week but really high and ready to wear, they sell you bomber jacket set sell you 17,000 euros because they are made with cashmere. that one also showed that it's really resilient. tom: 17,000 dollars, $17,000 for a cashmere jacket. thank you very much. on the blowout numbers and what it tells us about the broader demand for luxury. to the mining space, rio tinto, the world's top iron ore says shipments looked in the fourth quarter. demand from china remaining lackluster and lower production

at some of its mines. copper production surged 26% as real mind higher quality in its operation and chile and continue to ramp up outlook -- output from mongolia. president joe biden's administration is exploring ways to keep tiktok available in the u.s. if the ban takes effect. the app is set to go dark in the u.s. on sunday unless sold by chinese owner bytedance. meanwhile, according to the washington post, president elect donald trump is considering an executive order suspending the looming u.s. ban. the post cites unnamed sources saying a trump order could suspend enforcements of the law for up to 90 days. there is plenty more coming up. we will give you a preview of u.s. retail sales and u.k. gdp as concerns continue around the health of this economy. stay with us. this is bloomberg. ♪

>> overall this is a nominal inflation protocol. the economy is just chugging along steady growth, low 2% growth, unemployment steady and inflation coming down. the economy itself looks pretty good. >> we are not going back to 0% normal rates but rather low single digits, is a 2% or 3.5% is someplace in there. >> if you look of the last 3, 4 months we are running at around 2.5%, which is where the fed things you will be at the end of this year for the core pc. by the fed's own admission, inflation is stuck around 2.5% and also on top of that, the labor market seems to have stabilized. that was the primary reason they were cutting. so we don't see any reason for them to cut going forward.

tom: some of our guests weighing in on the latest cpi data at its implication for fed policy, course epa came in below the estimates and markets are now fully pricing in the next cut from the fed in july of this year, with some betting that maybe they go as soon as march. talking about a healthy u.s. economy, u.s. retail sales data later today. bloomberg economics expects a strong picture. they expect the number of 0.9%. the overall estimate is that retail sales will increase 0.6% with the holiday season. a couple of factors bloomberg economics as pointed to. in terms of the u.s. retail sales, holiday shopping season, stronger car sales. concerns about tariffs in a stabilizing jobs market. another gauge in terms of the health of the consumer in the u.s. and what it tells us about the outlook for that economy, talking of the economy let's look the board and have a look at what it means, all of this in terms of the u.k.

great scrutiny in terms of where the u.k. will find that growth that so far has avoided us, we will see if any growth comes through with the latest numbers that job. we get the gdp print, the expectation is for the november print you see an increase of zero point 2% after the contraction in the previous month. this is a government looking for the fastest month. we are long way from that. let's see what the data tells us 7:00 a.m. u.k. time, inflation looking more benign yesterday. we saw that move into gilts on the back of that. we are watching a potential launch of a blue origin spacecraft. it's waiting in florida, the trade is next. this is next. this is bloomberg. -- this is bloomberg. ♪

let's go boys. the way that i approach work, post fatherhood, has really been trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families, like my own. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. ♪ ♪

i: i'm alongside tom mackenzie. one hour away from the opening trade. what you need to know this thur