lizzy burden joins me now.ivot on nigel farage from elon musk and do we care? >> far be it for me to read the mind of elon musk but this really is a u-turn and it shows he's becoming a headache not just to keir starmer but the right wing of british parler tics as well. it was only days ago that his was apparently the party that could save britain and they recently went to mar-a-lago. you can see as well he had been touting this big donation by musk to his party but now the question is whether he will back robinson, this far right activist to be the reform u.k. leader. you had him talking about how robinson should be released from prison, he is in for contempt of court. faraj has distanced himself from robinson and we have reported several politicians in the u.k. have been in touch with people on the republican right warning them against endorsing robinson because they say his particularly your hue of anti-immigrant politics just is not supported by the mainstream right in britain. it's a big question because at

this is "bloomberg daybreak europe," dime lizzy burden in dubai. gaza ceasefire take hold is the first hot hinges are reunited with families. tiktok's short-lived u.s. suspension ends after donald trump promises to extend the deadline for a sale. this as the president elect vows to sign nearly a hundred executive orders within hours taking office today. shares in asia rise is a positive conversation between donald trump and xi jinping raises hopes of easing u.s. china tensions. a very good morning. a momentous day. the gaza ceasefire underway. donald trump said to be sworn in as america's 47th president and questions over his second term hanging over davos. we will have plenty of conversations for you from the swiss mountains. top of mind is the u.s. china relationship. we have had this call between xi and trump over the weekend and that injected confidence into asian equities this morning. more actually than the china growth numbers on friday. u.s. futures flat to the upside but equities and treasuries stateside are closed today for holiday. europ

>> lizzy burden, thank you very much indeed. that speech coming up later today detailing those aspirations around ai. our u.k. correspondent and anchor of the opening trade. we will have more in reeves paschi it visit to china later in the program and we will be joined by the chair of the british chamber of commerce in china around 6:45 a.m. london time. jeff bezos's blue origin space team are counting down to the inaugural launch of their new mission. you can see pictures here of the blue origin mission feed showing a rocket on the launchpad at cape canaveral in florida it is set to launch later this morning. the timer ticking down to around 30 minutes and 26 seconds. we will bring you that when it happens. this is blue origin's new space rocket that will be going with a testing satellite and with the aspiration of landing on a drone ship in the atlantic ocean. we will bring you that launch if and when it happens. this is bloomberg. ♪ ♪♪ ♪ three little birds ♪ ♪♪ ♪♪ ♪♪ >> welcome back to bloomberg daybreak: europe. at least two

correspondent lizzy burden joins me. rachel reeves reeves trying to assuage the markets, did it work? lizzy: the real test is today, tom, you heard her reiterating that she will meet fiscal rules at all times. another test will come in march when the office for budget responsibility assesses if she has gotten any headroom. she has signaled that if she hasn't, she will pick spending cuts over tax rises rather than breaking those fiscal rules although notably she did not say that yesterday in public. it raises the question of if she will cut spending, how will she maintain credibility? is she going to say she will do it down the line, let's say, after three years? and will that be enough for the market? we were speaking to the former chancellor george osborne's ex-advisor, and he said if she did that, it would be a stroke of the pen, changing numbers on the page not real action. this was not the only drama at the treasury yesterday. you saw the city minister quit. she had was possibility for anticorruption, ironically, it w

let's bring in lizzy burden, this is a challenge to state police least for racial reis.ing flashbacks to liz truss and to the budget. we saw the pressure on the pound, those dynamics suggesting the fed is turning sour on u.k. assets. what is rachel reeves to do? >> let me give you the big picture, the labour party really contrasted themselves with the conservatives by saying remember the specter of liz truss? rachel reed has put herself in a straitjacket, she said there will be no more tax rises, no austerity, one physical event in gear and she will stick to her fiscal rules of only borrowing to invest. she has really box herself in here. this is high risk because at the october budget she left herself a big margin for error, really relying with a hope and a prayer that the economy was going to grow. we know that growth has been in the doldrums, so then after the budget, she sat down and had the yield spike and pretty much the headroom was evaporating. now we've got the global bond rout and she is really boxed in. so what is she going to do? she tried to calm the market

i'm lizzy burden in london. asian equities at higher after a rocky start to the year for u.s. stocks. concerns about china's economy push the 10-year yield below one point 6% for the first time. south korean investigators failed to arrest impeach president yoon suk yeol after being blocked by protesters and his security team. the fbi finds no evidence seeking the attack in new orleans and the explosion of a cybertruck in vegas on new year's day, despite similarities. lizzy: very good morning. happy friday. we are looking at futures pointing lower in europe, higher in the u.s., but we had another session of disappointment in the u.s. yesterday. tesla results weighing on u.s. stocks. flipping over to the cross assets picture, we have japan still on holiday, so we await cash trade in treasuries. that shall start at the top of the hour but euro-dollar at a 1.02 handle. we saw dollar strength as u.s. initial jobs claims fell to an eight-month low in on the flipside euro weakness. we are still on parity watch as we await news about trump tariffs on europe, fears about another energy

in lizzy burden. uzs -- u.s.estigators look between a link between an attack in new orleans and december truck explosion outside the trump hotel in las vegas. asian stocks start on a sour note as we chinese data and the prospect of more u.s. tariffs heard sentiment. christine lagarde says of 2% inflation target is inside. after 50 years, russian gas to europe by a ukraine -- via ukraine stops after a transit deal expired raising concerns about energy security. welcome to the new year, 2025, and checking in on these markets, futures pointing a positive picture toward the first reading session of the year. ftse pretty flat, but wall street saw a down close at the end of 2024, but still the best two year run since 1998. if we flip over to the cross asset picture, japan is close, so cash trading in treasuries is up until 7:00 a.m. london time. euro-dollar at the 1.03 handle. christine lagarde saying that 2% target for the ecb is insight. oil edging higher after the u.s. industry report signaled crude stockpiles in th

let's bring in lizzy burden for the latest. what we could spend for u.k.ets, a reminder of the pressure on rachel reeves. talk us through what's been happening with darren jones and the labor government response. will it be enough to assuage investors? >> it fell to jones to defend what was going on. he described the moves as orderly. the pound has been at its lowest in over a year. that plus the rise in long-term borrowing costs have drawn these comparisons to liz truss so orderly is not quite the language being used on the trading floor. you have citigroup jokes swirling that it is the great british peso. wells fargo saying there's room for the pound to drop even further. to be fair, sarah bredon at the bank of england also used the word orderly. that suggests to me the bank is hesitant to wade into this but economists say the bank of england will have no choice but to slow rate cuts even if growth is weak and you see that reflected in the market pricing so they are only pricing in two quarter-point cuts this year even though andrew bailey signaled a fou