Israel, Egypt Troops Substitute Fire Come Rafah | Bloomberg Markets This day 05/28/2024

>> GOOD MORNING FROM LONDON.THIS IS BLOOMBERG MARKETS. I AM KRITI GUPTA.THE CASH TRADE JUST LESS THAN AN HOUR AWAY.HERE'S WHAT YOU NEED TO KNOW. WE GET REVIEWS FROM THE FEDERALRESERVE TO THE ECB. THEY ARE PREPARING FOR THESWITCH. THAT KICKS OFF THE DAY. THE COUNTDOWN TO THE U.K.ELECTION. WE WILL SPEAK TO THE BUSINESSSECRETARY, JONATHAN REYNOLDS ON THE SHOW.A CLASH WITH ISRAELI TROOPS OUT OF GAZA BORDER CROSSING.WE WILL BRING THE LATEST FROM.

THE MIDDLE EAST. >> A MAJORWEEK IN TERMS OF THE INFLATION STORY AND TERM OF THE EUROPEANSTOCK FUTURES GOING TO ABOUT A 10TH OF 1%.COMING BACK AFTER A THREE-DAY HOLIDAY. THE EURO-DOLLAR AT 108.GIVING A LIFT TO THE EURO. WE CONTINUE TO PASS COMMENTSFROM EUROPEAN CENTRAL BANK CONDITIONS AS WELL.MARKETS TODAY STARTS RIGHT NOW. GOOD MORNING, IT IS TUESDAY.WE HAD TO CHECK THE DATE THERE. THERE IS A LOT GOING ON.THERE IS INFLATION DATA LATER IN THE WEEK.WE HAVE A LITTLE BIT OF MARKET.

PLUMBING.WE ARE ON POLITICS WATCH AS ALWAYS IN THE U.K. AND THE EU. THERE IS A LOT TO DIGEST. YOUHAVE MICHELLE BOWMAN MAKING SOME PRETTY STRONG COMMENTS. IT IS REALLY CONSEQUENTIAL ANDREALLY SYMBOLIC THIS IS HAPPENING IN JAPAN.AS WE TALK ABOUT THE RATE DIFFERENTIAL BETWEEN THE BOJ,THE CHALLENGE FOR OFFICIALS THERE. REALLY INTERESTING AS WELL.THEY ARE SAYING THE FED TO DO A.

BETTER JOB AT COMMUNICATING. THE RUNOFF ON THE BALANCESHEET, THE QT HAS TO KEEP GOING BUT MAYBE SHE WOULD HAVE ANOPEN TO PUSHING IT BACK. THE QT QUESTION IS IN FOCUS FORTHESE OFFICIALS BUT ALSO COMMUNICATION. >> I HEAR THE OPPOSITECOMPLAINT IN HERE IN THE U.K.. THAT THE STATEMENT ARE TOOLONG, TOO NUANCED. WHEN YOU HEAR FROM CERTAIN BOEOFFICIALS. >> I LOVE THAT YOU'RE TALKINGABOUT THE QT STORY.

I THOUGHT THIS WAS INTERESTING.MICHELLE BOHN IS THE HAWK ON THE COMMITTEE. ALL THAT GETTING FOLDED INTOTHE CONVERSATION. I THINK THIS IS FASCINATING.THIS IS A NONEVENT ESSENTIALLY. THERE ARE TWO LITMUS TESTS THISWEEK. I KEEP STUMBLING ALL OVER THESEWORDS ON FRIDAY. ON WEDNESDAY YOU HAVE THATSENTIMENT. THAT IS WHERE THE INDUSTRY ISGOING TO SAY CAN WE HANDLE THIS? IS THIS OK?OUR THOUGHT OUR REPORTING WAS.

REALLY INTERESTING IN THAT WEHAD THEM COMPARING US TO THE 1920'S, THE ROARING 20'S.SAYING THAT THE MEME STOCK RAISE THAT PUSH THIS FORWARD ISJUST A REPLICATION OF WHAT WE SAW BACK IN THE GOOD OLD DAYS. WE ALSO HAD SOME INTERESTINGECB SPEAK YESTERDAY. THIS IS KIND OF WHAT WASDRIVING EUROPEAN MARKETS YESTERDAY. IT WAS CONFLICTING. THEN YOU HAD HIM SAYING MAYBEWE ARE CUT IN JULY INSTEAD OF JUNE. WHAT'S THAT IS A CLEARPUSHBACK.

>> JUST BECAUSE WE GO IN JUNEDOESN'T MEAN THAT OPENS THE DOOR FOR CONTINUING ANDREPETITIVE CUTS FROM THE ECB. WE ARE GOING TO PAUSE ANDASSESS THE DATA. WE ARE MEANT TO BE EFFECTIVELYROLLING OUT. WHY ARE YOU FILLING OUT A JULYCUT? WE DO FOLLOW MEETING BY MEETING.>> WE HAVE THEM COMING OUT AS WELL.SHE REALLY REITERATED THAT THIS IS THE CONVERSATION THEY’'REHAVING OVER IN TOKYO. SHE IS MAKING A VERY TARGETED,ABOUT QA.

SAYING IT IS NOT SUPPOSED TO BEUSED OUTSIDE OF CRISES. AND LAST 20 YEARS, HAVEN'T WEBEEN DOING JUST THAT? WE ARE TALKING ABOUT ROLLINGOFF THE BALANCE SHEET. >> 130% ESSENTIALLY OF GDP.IT IS INCREDIBLE. WE ARE STILL IN THAT LEAD UPAND JULY 4. SWITCHING FOCUS IN TERMS OFWHAT IS HAPPENING IN THE CENTRAL BANK.THERE ARE CONCERNS ABOUT THE LABOUR PARTY.GRADY YOU THINK THINGS STAND? TODAY IS A BIG DAY ON THEECONOMY.

WILL HEAR FROM RACHEL REEVES.THE WOMAN WHO THE POLLS THEY WOULD BE NUMBER 11 BY JULY THEFIFTH. SHE'S GOING TO SAY THAT LABORIS THE KEY TO STABILITY WHICH IS THE KEY TO GROWTH TO THE U.K.ECONOMY. THE BIG DEBATE IS HOW WE AREGOING TO DO THE PARTIES OF BUSINESS. CROISSANT TOP OF THAT, YOU ALSOHAVE A TWO SUNAK MAKING A LITTLE BIT OF AN APPEAL ON THEPENSION REFORM, EXPLAIN THAT TO US. WHY DOES THAT MATTER?.

>> WE WERE DISCUSSING THISEARLIER. IT SPEAKS TO THE ELECTORAL PLAYTO FEND OFF REFORM. THIS RIGHT-WING PARTY THAT ISPOTENTIALLY GOING TO STEAL VOTES FROM THE CONSERVATIVES.THEY WANT TO APPEAL TO ALL PEOPLE.THAT IS WHY OVER THE WEEKEND THEY WERE REPURPOSING NATIONALSERVICE AGAIN, HARKING BACK TO FORMER TIMES.THEY ARE ALSO GOING FOR THE JULY ELECTION SO THAT THEREFORMERS DON'T HAVE TIME TO GATHER MOMENTUM.

>> A VERY DIFFERENT TOPIC OFCOURSE. WE HAVE A REMINDER OF JUBILANTPRETENSIONS. REMARKABLE EVENTS UNFOLDING INTHE MIDDLE EAST. PARTICULARLY AROUND EGYPT ANDTHE REFUGEE CAMP. THEY ARE RATCHETING HIGH INTHAT REGION AFTER AN EGYPTIAN SOLDIER WAS KILLED IN A CLASHWITH ISRAELI FORCES AT THE ROUGH A BORDER CROSSING.IT FOLLOWS ISRAEL'S DEADLY AIRSTRIKE ON A RAVAGE A CAMPWHICH BENJAMIN NETANYAHU DESCRIBED AS A TRAGIC MISTAKE.FOR MORE, LET'S BRING IN.

BLOOMBERG'S VERIZON'S ANCHOR.WHAT HAS THE INTERNATIONAL REACTION BEEN?PLUS START WITH THAT REFUGEE CAMP.WHAT HAS THE REACTION BEEN TO THAT EVENT?LET ME START OFF BY SAYING THERE HAS BEEN AN EXTREMEATTENTIVE PATIENT OF VIOLENCE OVER THE COURSE OF THE WEEKEND.THAT IS REALLY AIRSTRIKE IS NOT TO HAVE KILLED 45 PEOPLE AND OFCOURSE THERE ARE MANY IMAGES CIRCULATED.GRAPHIC IMAGES OF PEOPLE BEING ENGULFED IN FLAMES.INITIAL RESPONSE FROM ISRAEL IS.

TO SAY THE ATTACK WAS BASED ONPRECISE INTELLIGENCE AND THE AIM WAS TO ELIMINATE TWO SENIORHAMAS OFFICIALS. THERE WAS INTERNATIONAL OUTCRYAS SOON AS THOSE IMAGES STARTED TO WORK AND AS SOON AS BECAMEAPPARENT COMING CIVILIANS HAVE BEEN KILLED THROUGHOUT THATATTACK. FIRST OUT OF THE GATE WERE SOMEOF THE ARAB STATES. QATAR SPOKE OUT. REACHING AN AGREEMENT FORIMMEDIATE AND PERMANENT CEASE-FIRE.WE ALSO CONDONATION FOR THE.

LIKES OF SAUDI ARABIA.ALSO A KEY PLAYER IN THE REGION. EVEN THE UAE PUT A RESPONSEFORWARD YESTERDAY. THAT IS INTERESTING BECAUSETHEY SIGNED A NORMALIZATION AGREEMENT WITH ISRAEL BACK INTHE ABRAHAM ACCORDS. WE ALSO HAD VERY STRONG WORDSARTICULATE A BY SOME OF THE EUROPEAN LEADERS.RESIDENT BACKGROUND BETWEEN THAT HE WAS OUTRAGED BY THEISRAELI STRIKES AND THAT THESE OPERATIONS MUST STOP.THERE ARE NO SAFE AREAS FOR PALESTINIAN CIVILIANS.

I WAS IN THE U.S.APPROACH HAS BEEN SLOWLY MORE NUANCED. THEY SAID THEY WEREDISAPPOINTED AND THAT THE SCENES WERE VERY DISHEARTENING. THE BACKDROP TO THIS IS THE ICJRULING WHICH CAME ON ON FRIDAY. ESSENTIALLY TELLING ISRAEL TOSTOP WITH ATTILA TERRY OPERATIONS IN RAFAH AND THATDIDN'T TRANSPIRE OVER THE WEEKEND.QUIET THAT IS THE INTERNATIONAL COMMUNITY RESPONSE.WHERE DOES IT LEAD TRUCE TALKS GOING FORWARD?.

>> THAT IS THE KEY HERE LIZZIE.WHAT I DIDN'T MENTION WAS WE SAW BORDER CLASHES WITH EGYPTAND THIS IS AN INTERESTING INFORMATION AS WELL.EACH OF SIGNED THEIR OWN PEACE TREATY.THESE TYPES OF HOSTILITIES ARE VERY RARE.INDEED, ONE EGYPTIAN BORDER GUARD WAS KILLED AT THE BORDERWITH ROUGHLY YESTERDAY. THIS ALSO COMPLICATES SOME OFTHESE TRUTH DEAL — TRUCE DEAL EFFORTS. CUTTER AND EGYPT ARE TEMPE TOBRING ISRAEL AND HAMAS TOGETHER.

TO GET THE SUM FORM OF A TRUCEDEAL EARLY ON. THE GUITARS INDICATED THE FACTTHAT ISRAEL IS GOING TO BEGIN COACHING RAFAH IS A BIG DEALWHEN IT COMES TO DISCUSSIONS. HAMAS ARE ASKING FOR A FULLCESSATION OF HOSTILITIES. ISRAEL SAYS THOSE TERMS ARE NOTSOMETHING THEY WOULD AGREE TO. THERE IS A LOT OF DAILY BETWEENTHE TWO SIDES. THEY JUST REPORTED WHETHER ORNOT THIS CROSSES THE REDLINE THE WHITE HOUSE PUT OUT.BLOOMBERG HORIZONS ANCHOR, WE THINK YOU SO MUCH FOR THATCRUCIAL CONTEXT AS WE ARE.

MONITORING THE GEOPOLITICSAROUND THE WORLD, WE ARE ALSO GOING TO BE KEEPING SOME OF THEKEY EVENTS. WE ALREADY HAVE SOME COMMENTSABOUT THE KIND OF ALL OF THIS COMING OUT.TALKING ABOUT COLLABORATIONS THAT YOU WILL SEE ON THEECONOMICS HERE. THE DEFENSE WORK UKRAINE WILLBE MONITORED. THERE IS 20 GOING ON ON THEDIFFERENT. THAT U.S. CONSUMER CONFIDENCE DATATENSELY MOVING THE BOND MARKETS AT SEVERAL TRADERS COME BACK TOTHEIR DEATH AFTER THAT MEMORIAL.

DAY WEEKEND.THE TWO-YEAR TREASURY IS THERE FOR THE FRONT END OF THE CURVE.JUST 90 MINUTES LATER YOU'LL GET A FIVE-YEAR TREASURY OPTIONAS WELL. WHAT I THINK IS THE BIG EVENTIS THAT PEOPLE'S ONE SETTLEMENT. THERE IS OLD BIT OF MARKETPLUMMETING HERE THAT DOES NOT LEAD TO A BROADER MACRONARRATIVE. WE WILL SEE HOW THAT FEEDS INTOTHIS. WE WILL ALSO BE HEARING FROMCATHERINE MAN OVER AT THE BOE. THERE IS 20 DID I JUST HEARWHEN IT COMES TO THIS BOND.

MARKET AND ELECTIONS AS WELL.WHAT IS SO GREAT ABOUT THIS WEEK IS IT IS WHERE THEY AREMET WITH THE MARKETS. >> IN THE U.K.CONTEXT YOU CAN KIND OF PUT THE BOE SPEAK ON THE SIDE A LITTLEBIT BECAUSE WE ARE NOT EXPECTING THE JUNE CUT GIVENTHE LOCAL SITUATION IS THE FOREFRONT HERE UNLIKE IN THEU.S.. TO WHAT A STENT I WONDER DOESTHE PCE — TWITTER STENT THAT IS PRICED BY THE MARKETS.HOW MUCH IS THERE TO ASSETS ON THAT PCE INDICATOR WHETHER ITALIGNS WITH WHAT WE'VE BEEN.

HEARING FROM FED SPEAK OR DOESIT COME IN WITH THE SURPRISE. HOW MUCH VULNERABILITY IS THEREIN THE MARKETS? THE EXPECTATION IS IT WILL BEONLINE BUT CLEARLY THAT IS THE RISK FOR THESE MARKETS.EVEN THE MIND IS THOUGHT TO BE QUIET HAWKISH.THE IDEA THAT IT NEEDS TO BE COMING DOWN PRETTYSUBSTANTIALLY. WE NEED TO KEEP AN EYE ON THEPH.D. DEAL. I THINK THERE ARE SOMECOMMENTARY COMING OUT OF JP MORGAN SAYING THAT IN ADDITIONTO THE SOUTH AFRICAN ELECTION,.

THE IMPACT THERE ON THE REDWHICH IS THE MAJOR CURRENCY, YOU HAVE TO KEEP AN EYE ON THEMAJOR DEAL AND WHAT THAT MEANS FOR RESERVES THERE. >> WITH COPPER HIGHER IN THESESSION TODAY AND THEN THAT DEAL AND WHAT HAPPENS TO THEASSETS IN SOUTH AFRICA IS A REALLY CRUCIAL PART OF THATDEAL. IT IS RIGHT TO BRING THAT TOOUR ATTENTION AS WELL. A BIG WEEK FOR SOUTH AFRICAWITHOUT VOTE TOMORROW. COMING UP WE WILL LOOK AHEADWITH JACKIE WHO JOINS US LIVE.

FROM CAPE TOWN.DON'T MISS THAT INTERVIEW. 7:30. PLUS RICHIE SUNAK WILL PROMISEPENSIONERS TAX CUTS IF CONSERVATIVES WIN THE ELECTION. IF YOU HAVE ANY QUESTIONS OFYOUR FOR OUR GUESTS, THIS IS BLOOMBERG. COURSE IN EUROPE, YOU HAVE WEAKPRIVATE DEMAND. YOU DON'T HAVE THE SAMEINVESTMENT MOVES. YOU HAVE SCHOOL CONSOLIDATION.DEMAND IS GOING TO BE WEAKER. THAT MEANS IT IS VERY CLEARTHAT THE ECB HAS TO BE PLEASE.

WAIT. >> THAT WAS THE SENIOR FORNATIONAL ECONOMICS AND FORMERLY OF IMF AIM SPEAKING TOBLOOMBERG SIMPLY ABOUT THE FUTURE OF THE ECB AND WHAT ITLOOKS LIKE, ECHOING THAT SENTIMENT IS FRANCE LAVELLERIGHT. I AM MESSING UP THAT REALLYBADLY BUT WHAT YOU NEED TO KNOW IS WE TOLD THE GERMAN'S BEARTHAT IS YOUR RATE CUT WAS A DONE DEAL.HE ADDED THAT THE ECB SHOULD NOT EXCLUDE A SECOND RATE CUTIN JULY.

THAT SEEMS TO BE THE NARRATIVEHERE. WHAT ARE WE TALKING ABOUT INTERMS OF IF JUNE IS ALREADY SOLIDIFIED IN THE MARKETPRICING, WHERE IS THIS STRATEGY GOING FORWARD AND HOW MUCH OF ADIFFERENCE DOES IT REALLY MAKE? CHRISTIAN, GLOBAL CIO ATDEUTSCHE BANK PRIVATE BANK. LET ME PUT THAT QUESTION TO YOU.IF WE KNOW THAT A CUT IS BASICALLY A DONE DEAL IN JUNE,HOW MUCH OF A DIFFERENCE DOES IT CONSECUTIVE CUT MAKE WITHCOMES TO JULY. HOW MUCH OF A DIFFERENCE DOESTHAT REALLY MAKE?.

>> I THINK THEY HAVE BEEN VERYCLEAR TO COMMUNICATE. THAT THEY REALLY WANT TO GO FORA JUNE CUT. IN THE FUTURE MONTHS, THAT ISWHAT WE ARE GOING TO DO. THAT SHOULD LEAVE SOME FREEDOMFOR THEM TO DECIDE AND I THINK THEY KIND OF WATCH DATA.THIS INFLATION IS REALLY COMING DOWN.I THINK THEY DON'T NEED TO COME INTO THIS.THEY ARE VERY CLEAR ON JUNE. I EXPECT THAT THEY CUT TWICEAGAIN THIS YEAR. PROBABLY IN SEPTEMBER ORDECEMBER MAYBE.

I COULD PUT THE UNDERSTAND THESENTIMENT TO SAY WE ARE NOT GOING TO COMMIT FOR JULYALREADY. IT IS A LITTLE BIT OF WAIT ANDSEE ON THE DATA. >> IT IS REALLY A DIFFERENCE OFFOUR OR FIVE WEEKS. WHAT WOULD REALLY SOLIDIFY THECASE FOR JULY IN YOUR VIEW? >> IF YOU REALLY SEE THAT THEECONOMY IS DOING WORSE, MAYBE THEY COULD DO A BIT MORE ORINFLATION COMING DOWN FASTER. I THINK WHAT THEY REALLY WANTTO ACHIEVE TOGETHER, THEY WERE TO SIGNAL THAT THEY WANT TO CUTAND THAT COULD BE DIFFERENT.

FROM THE FED.THERE HAS BEEN DISCUSSION THROUGHOUT THE YEAR.I THINK YOU REALLY WANT TO SEE DATA.I THICK WE ARE ALWAYS SAYING INFLATIONS WENT STICKY.WE ALSO HAVE TO BE A BIT CAUTIOUS TO A CUT — ONE CUT TOSTART THE CUTTING CYCLE. I DON'T THINK THAT IS A LONGONE THIS TIME. THEN I WOULD SAY LET'S BEDATA-DEPENDENT. NOW EVERY MONTH SOMETHING ISHAPPENING. IF THEY DO JULY AGAIN, THEY'REPRICING AND MUCH MORE.

>> HOW DEPENDENT ON THESEEUROPEAN EQUITY MARKETS ON CUTS COMING THROUGH FROM THE ECB? >> IF YOU LOOK AT THE EQUITYMARKET, IT HAS BEEN A BIT LIKE A GOLDILOCKS SCENARIO.THE MARKET HAS BEEN PRICING IN AT THE BEGINNING OF THE YEAR. STILL, THE MARKET IS SAYING –I THINK THAT'S WHAT THE MARKET HAS BEEN PRICING IN.IF YOU LOOK AT EQUITY MARKET PERFORMANCE YOU TODAY, I JUSTSAID TO SOME, MAYBE IF THAT IS THE END OF YOUR PERFORMANCE,THAT IS VERY GOOD ONE.

THAT IS WHAT WE CALL THISSCENARIO. AND NOW I THINK WE NEED TO SEETHE CENTRAL BANK FOLLOW THROUGH WITH CUTS.I WOULD INSPECT THE ECB TO CUT AND THE FED IS ALSO ON A CUT.NOT THIS MONTH BUT PROBABLY IN THE THIRD QUARTER AND THEFOURTH ONE. THERE IS A CUTTING CYCLE FROMOUR POINT OF VIEW. I THINK THAT IS A POSITIVETHING FOR EQUITY MARKETS. >> WHAT POTENTIALLY DERAILSTHAT GOLDILOCKS ERA AS YOU CHARACTERIZE THIS MOMENT?.

>> I WOULD SAY THERE IS STILL ALOT OF FOCUS ON INFLATION AND IF IT IS ABOUT SETTLE BANKCUTS, THEY NEED TO LOOK AT INFLATION.WHAT WOULD BRING INFLATION HIGHER.OF COURSE, IF THERE ARE OIL PRICES MOVING HIGHER BECAUSE OFESCALATION OF TENSIONS, YOU HAVE SEEN OIL GOING SLOWLYHIGHER SO FAR BUT IT IS ESSENTIALLY COMING DOWN EVEN INTHE LAST WEEKS. THAT IS WHAT YOU SEE THROUGHTHE INTEREST RATES. WE HAVE BEEN SEEING THEM MOVE ABIT HIGHER.

THE MARKET STARTS TO GET A BITJITTERY AND WHAT WE LOVE IS TO COMBINE THIS AND LOOK AT REALYIELDS. THERE HAS ALWAYS BEEN A SCENARIO WHERE EQUITIES — THISHAS COME OFF BUT I THINK YIELDS AND ENERGY PRICES.THAT IS WHERE THE MARKET STARTS TO GET A BIT MORE VOLATILE FROMMY POINT OF VIEW. WHAT ABOUT THE IMPACT OFPOLITICS? IS THERE ANYWHERE YOU LOOKINGIN THE MARKET FOR AN IMPACT FROM THE EUROPEAN ELECTIONS?THERE ARE LOTS OF DISCUSSIONS. I THINK THERE HAS BEEN A LOT OFDISCUSSION.

IS THERE ANY POLICY CHANGE?HOW WAS THE PALM OF PUT TOGETHER?WHAT ARE THE CONSEQUENCES? THERE ARE A LOT OF DISCUSSIONSHERE IN GERMANY ABOUT COMBUSTION ENGINES.THAT IS SOMETHING TO WATCH IN TERMS OF SPECIFIC SECTORS.FROM MY POINT OF VIEW, IT IS A VERY IMPORTANT ELECTION.IF YOU SEE THE TENDENCY WE SEE IN EUROPE AND FROM THATPERSPECTIVE, WE DO WATCH THIS QUIT A LOT.IT MAY NOT HAVE AN IMMEDIATE IMPACT ON THE CENTRAL BANK SIDEBUT I THINK FROM THE POLITICO.

LANDSCAPE IT IS A VERYIMPORTANT ELECTION WE SEE AHEAD OF US. >> WHAT ABOUT THE U.K.?WOULD YOU BE BUYING BRITAIN ON JULY THE FIFTH? WOULD IT MATTER TO THE SIZE OFHIS MAJORITY IF HE WINS? >> WHAT YOU ALWAYS WANT IS TOHAVE A CLEAR MAJORITY. I HAVE BEEN LEARNING THAT YOUCAN ALWAYS LOOK AT PULSE IN THE ELECTION OUTCOME. IF YOU LOOK AT HISTORY, YOU SEEA DEDICATED LOOK AT MARKETS.

THEY ARE LOOKING AT THE POLICYBEING EXECUTED FROM THAT POINT OF VIEW.WE NEED TO SEE WHAT IS THE IMPACT OF THE ELECTIONS.IS IT COMING OR NOT? THEN YOU LOOK AT DIFFERENTSECTORS FROM MY POINT OF VIEW. SO FAR, THE POLLS LOOK FOR ACLEAR MAJORITY BUT LESS HE WOULD HAPPENS IN THE NEXT WEEKSAND HOW THE ELECTION OUTCOME WILL BE.THE CLEARER MAJORITY THE BETTER IF YOU WANT TO GET YOUR POLICYTHROUGH. >> IN OUR FINAL MINUTE OR TWO,TALK TO US ABOUT THE ETHICS.

STORY.LIZZIE WAS TALKING ABOUT THE WEAKNESS WE ARE SEEING ONMONETARY POLICY FRONT. A LOT OF PEOPLE ARE SAYINGCABLE AT 127 DOESN'T REALLY MAKE SENSE WHEN WE ARE TALKINGABOUT THIS BACKDROP. WHEN WAS THAT GOING TO SNAP?WHEN IS THAT GOING TO REVERT TO ITS MEAN OR JUSTIFY THEFUNDAMENTALS IN YOUR VIEW? >> IF YOU LOOK AT THE DOLLAR,YOU COULD ARGUE IF THE FED COMES IN LATER THAN EXPECTED ATTHE BEGINNING OF THE YEAR, THAT SHOULD ADVOCATE FOR A STRONGERDOLLAR.

QUICKLY IF YOU LOOK AT SURPRISEINDICATORS IN THE U.S. ECONOMY, THE U.S.ECONOMY IS DOING A BIT MORE NEGATIVELY.EUROPE IS DOING A BIT BETTER. THEY ARE STILL IN CONTRACTREWORK. I THINK THEIR INCREASING.IT IS ONLY THE SERVICE SECTOR DOING BETTER. FROM OUR POINT OF VIEW I THINKTHEY COULD CONTINUE WITH EURO-DOLLAR WOULD BE 110.MAYBE ONE YEARS TIME WHICH IS NOT A MASSIVE CHANGE YEAR OVERYEAR.

WE SHOULD NEVER FORGET IF THEREIS ANY GEOPOLITICAL FISC. THAT NORMALLY ADVOCATES FOR ASTRONGER DOLLAR. THANK YOU VERY MUCH INDEED ONTHESE MARKETS. THIS GOLDILOCKS ERA AND HOW THERATE CUTTING ENVIRONMENT TIES INTO THAT.JUST SHY OF 2/10 OF A PERCENT. THE SOUTH AFRICANS ARE ENJOYINGA RARE STREAK OF UNDER — UNINTERRUPTED ELECTRICITY.WE WILL LOOK AT WHY THIS HAS DRAWN SUSPICION AHEAD OFWEDNESDAY'S ELECTION. THAT IS NEXT. THIS IS BLOOMBERG.

SOUTH AFRICANS HAVE BEEN USEDTO THIS. DINNER BY CANDLELIGHT, PULLINGUP TO TRAFFIC LIGHTS THAT GO DARK.ALL DUE TO FREQUENT ELECTRICITY CUTS THAT HAVE DISRUPTED LIVES,IMPACTING ECONOMIC GROWTH AND PUMP TO CRITICISM FROM MININGCOMPANIES TO RETAILERS. JUST LAST YEAR, THE POWERUTILITY COMPANY HAS COME COULD ONLY KEEP THE LIGHTS ON FOR THEEQUIVALENT OF 82 DAYS. BUT WITH AN ELECTION ON THEHORIZON, SOUTH AFRICANS HAVE BEEN ENJOYING A RARE STREAK OFUNINTERRUPTED ELECTRICITY.

SUPPLY.OPPOSITION PARTIES HAVE USED THE POWER CRISIS AS FODDER INTHE RUN-UP TO THE GOAL AND NOW VOTERS HAVE BECOME SUSPICIOUSAS TO WHAT LIES BEHIND THE SUDDEN RECOVERY.REALLY TWO THIRDS OF SOUTH AFRICANS SET DATE CONSIDER NOTREALLY FOR THE AGENCY BECAUSE OF POWER BECAUSE.PERHAPS IT IS NO SURPRISE THAT THE GOVERNMENT IS TRUMPETINGTHIS WIN STREAK. BUT THE IMPROVEMENT HAVE COMEAT IT ENVIRONMENTAL COST. THE STATE HAS FOUR BUT THE AMOUNTIT SPENT ON DIESEL TO RUN.

EMERGENCY POWER GENERATORS.STILL, THE GOVERNMENT INSISTS THE IMPROVEMENTS ARE DUE TOINCREASE IN GREEN POWER INCLUDING SOLAR THROUGHPUBLIC-PRIVATE SHIP. WHAT THEY HAVEN'T SAID IS FORHOW LONG THE LIGHTS WILL STAY ON AFTER THE ELECTION. >> THAT WAS JENNIFER REPORTINGON SOUTH AFRICA'S POWER CRISIS. JEN JOINS US LIVE FROM CAPETOWN. BUT OTHER ISSUES WILL BE TOP OFMIND FOR VOTERS WHEN THEY GO TO THE TOP OF POLLS TOMORROW? ?NUMBER OF ISSUES THAT ARE TOP.

OF MIND FOR SOUTH AFRICANS ANDWE NEED TO THINK ABOUT HOW MANY ARE REGISTERED.THERE ARE NINE MAJOR PROVINCES. SEVEN PEOPLE ARE PARTIES.WE JUST TAKE ABOUT THE ISSUES. THERE WAS A LONG LIST. IF WETHINK ABOUT THAT PACKAGE WE WERE JUST SHOWING THERE,ELECTRICITY HAS BEEN TOP OF MIND FOR A NUMBER OF PEOPLE.DAY-TO-DAY ON THAT PACKAGE. ONE TRULY DOLLARS IN LOSTACTIVITY IN 2023. VOTERS ARE SICK OF THAT.THEY ARE FRUSTRATED WITH THE FACT THAT WE HAVEN'T SEENGROWTH. ON EMPLOYMENT IS AT 33%.

THERE ARE NUMBER OF ISSUES BUTREALLY THE QUESTION IS WHICH OF THESE PARTIES, WHICH OF THESELEADERS ARE ACTUALLY CAPABLE AND READY TO ACTUALLY TURNTHINGS AROUND. THE INTERESTING PART OF THIS –I MENTIONED THERE WERE 70 PUT PARTIES. 11 INDEPENDENT PARTIES.THAT IS WHERE I WANT TO BRING IN THE GUESS THAT IS STANDINGHERE WITH ME. HE IS A FORMER MEMBER OF THEAGENCY RULING PARTY. RUNNING AS AN INDEPENDENT HEREIN THE WESTERN CAPE WHICH IS A MASER PROVINCE OF THIS ELECTION.THANK YOU FOR YOUR TIME.

FOR THE FIRST TIME, WE ARESEEING INDEPENDENT CANDIDATES ALLOWED TO CONTEST THIS LIMIT,AND THIS VOTE. WHAT SORT OF DENSE DO YOU THINKINTO BEEN A VOTERS MIGHT MAKE TOMORROW? QUESTIONABLY IT WILL MAKE AMAJOR DENT IN THE VOTE INTERNATIONALLY. MOSTLY PEOPLE THAN INFINITY. THIS HAS BECOME A MONSTROUSPARTY THAT IS BECOME CRIMINAL FRANCHISE.

I THINK PEOPLE WOULD BE VOTINGFOR STABILITY RATHER THAN VOTING FOR THE CRIMINALITY.THAT IS VERY IMPORT FOR ME. >> WOULD YOU SAY THAT THESTABILITY IS THE AGENCY PERTAINING THE MAJORITYQUESTION MARK >> NOT NECESSARILY RETAINING BUTDEFTLY BEING THE LARGEST PARTY WITH A VERY SLIM NEED FOR ACOALITION BUT ALSO POSSIBLY JUST THE SLIGHT MAJORITY. CLOSE TO 100%.THEY ARE WORKING-CLASS PEOPLE. AND OR BLACK AFRICAN TOWNSHIP.

WOMEN SUFFER IN DARKNESS. WHAT MOST PEOPLE ARE ISPATIENT, DISAPPOINTED BUT AS LONG AS THERE WOULD BE SOMEPROGRESS, PEOPLE WILL UNDERSTAND THAT THEY ARE TAKINGTIME TO FIX ALL THE PROBLEMS OF THE COUNTRY BUT THE AFRICANINTERNATIONAL CONGRESS HAS UNDERMINED CAPACITY AND THATJUST MEANS OUR ELECTRICITY TRANSPORT, INSURANCE INDUSTRYARE ALL UNDER TROUBLE. IF YOU WERE TO BE ELECTED INDEPARTMENT, COULD YOU POTENTIALLY –.

THAT IS CRITICAL TO PRESSUREBECAUSE ON SUPPLEMENT. TO BE ABLE TO ASK ANY QUESTION,GET ACCESS TO ANY DOCUMENT, MAKE THAT PUBLIC, TO SHOW WHICHOF THE — WHICH ARE THE GOOD PUB OBSERVANCE — THAT SHOULDMAKE A DIFFERENCE. I'M WILLING TO WORK WITH ANYAPPLICABLE PARTY WHO IS PRO WORKING-CLASS.THE DIFFICULTY FOR ME HAS BEEN THE INABILITY TO GET ANYPOLITICAL PARTY TO UNDERSTAND THAT WHAT WE HAVE TO DO IS FIXTHE SLATE BECAUSE OTHERWISE THE ECONOMY CANNOT GROW.

THAT IS JUST NOT RIGHT. >> IF THERE WAS A CLEARUNDERSTANDING — THAT IS THE FREIGHT RAIL.IF WE COULD FOCUS JUST FROM A FEW THINGS AND ALL THE PARTIESWHO WANT TO SEE THE COUNTRY GO FORWARD WERE TOGETHER, THENINDEED THERE IS A POSSIBILITY OF SERIOUS ECONOMIC GROWTH.A RETURN OF ECONOMIC GROWTH. >> THERE ARE SOME POSITIVESIGNS. ARE WE HEADED IN THE RIGHTDIRECTION? >> I BELIEVE WE ARE HEADED INTHE RIGHT DIRECTION BUT.

RECENTLY, THE GRID ISSTABILIZING. IT IS TWOFOLD. SOME STATIONS HAVE BEEN BROUGHTBACK ON. THE OTHER SIDE IS THAT THEPRIVATE SECTOR IS OPTING AFTER THE SYSTEM. QUESTION THIS TURBINE INTO THESYSTEM AND DEPLOY CAPITAL AFTER MAY 29? WHERE DOES IT GO? >> THE BIG MINING COMPANIES ANDSO ON HAVE MOVED OUT AND GREETED SOLAR PANELS AND SO ON. I THINK AT THIS POINT WE CANNOT– I AM A SOCIAL DEMOCRAT, I.

DON'T BELIEVE BASIC SERVICESSHOULD BE IN PRIVATE HANDS BUT AT THIS POINT, WE HAVE TO RELYON EVERYONE WHO CAN PUT CAPITAL IN AND THAT INCLUDES THEPRIVATE SECTOR. >> AS A FORMER AGENCY MEMO, YOUMENTIONED A LOT OF UNDECIDED VOTERS ARE POTENTIALLY FORMINGANSI SENTIMENT A VOTERS. IS THE PROMISE THAT AGENCYPROMISED IN 1994, DO YOU THINK IT IS A DIFFERENT PARTYALTOGETHER RIGHT NOW? DOES IT MAKE SENSE THESENTIMENT OF WHAT IS STILL THERE?.

>> THE ASK — AFRICAN, STATEEXCELLENT WORK IN THE FIRST FIVE TO SEVEN YEARS. THE DISTRACTION OF LIFE THROUGHHIV TO NIHILISM, THE ARMS DEALER AND CORRUPTION STARTEDTAKING OVER THE PARTY AND WE SAW DIFFERENT PARTY MERGING. I BELIEVE THEY DESERVE LOSINGBUT I DON'T WANT TO LOSE BY TWO ARTICLE MARGIN. >> WHO MAKES THE DECISION?WHO WILL BE THE DECIDING FACTOR? WILL IT BE THE UNDECIDED VOTER?WOMEN WHO ARE REGISTERED MORE.

THAN MEN? >> OLDER WOMEN WHO SUPPORTEDTHE ANSI WHO ARE NOW IN TWO MINDS ABOUT SUPPORTING IT.THEY WILL MAKE A DIFFERENCE. YOUNG PEOPLE WILL VOTE FOROPPOSITION PARTIES LARGELY EXCEPT THOSE AFFILIATED TODAY. I THINK WOMEN, BLACK AFRICANWORKING-CLASS WOMEN IS WHERE THE AGENCY POSSIBLE IS.THAT IS ALSO WHERE MY VOTE IS. >> IN WHAT PROVINCES THEN? >> IF YOU LOOK AT THE SIGNALPROVINCES THE AGENCY IS IN.

DANGER OF LOSING, THE MOSTIMPORTANT ONE FOR THEM TO LOSE IS THE HEART OF THE ECONOMY. THEY MAY EVEN SCRAPE IN BECAUSETHEY REALLY PUT THEIR MACHINE INTO IT. HE IS DOING IT AGAIN. THAT PROVINCE THEY ARE LIKELYTO LOSE. IT IS A DANGEROUS PROVINCE.THERE ARE THREE GROUPS OF ARMED MEN. THAT IS DIFFICULT.IF THIS IS LOSS TO THE ANSI,.

THE AGENCY LOSES NATURALLYBECAUSE THAT IS WHERE IT GETS MOST OF IT.WIFE THAT WILL BE THE DECIDING FACTOR AS WELL.THANK YOU SO MUCH FOR YOUR TIME AND INSIGHTS. QUICK THINK YOU VERY MUCHINDEED. WE WILL BE SPEAKING TO THESOUTH AFRICAN FINANCE MINISTER. CATCH THAT INTERVIEW ON THEPULSE AT NINE: 10:00 A.M. YUCATAN. >> COMING UP ON THE PROGRAM, WEWILL COVER YOUR STOCKS TO WATCH.

THE DUTCH LENDER INCREASING ITSMANAGEMENT REACH. WE ARE GOING TO GET MOREDETAILS NEXT. THIS BLOOMBERG. ♪ >> WELCOME BACK TO MARKETSTODAY. WE ARE ABOUT 60 MAN'S AWAY FROMTHE CAP EQUITIES. FUTURES ARE POINTING HI.PINOT CATCH-UP TRADE. U.K. TRADERS COME BACK FROM THATLONG WEEKEND. LET'S BRING IN OUR EDITOR FOR ALITTLE BIT OF WHAT IS ON HIS AGENDA.HE WILL JOIN US IN JUST A FEW.

MINUTES.WHAT IS REALLY CRUCIAL WHEN WE STOCK — WE TALK SPECIFICALLYABOUT THESE MARKETS — IT IS ALL ABOUT THE BOND MARKET LATERON IN THE WEEK. YOU HAVE THE TREASURY BUYBACKS.POLY OF OPTIONS. A PRETTY PRONOUNCED SELLOFF INTHE U.K. ON THE BACK OF SLOWLY HIGHERTHAN EXPECTED INFLATION DATA. TO BEGIN A FURTHER SELLOFF ONTHESE BOND MARKETS? WE MODERATE? >> INFLATION DATA FROMAUSTRALIA TO JAPAN. SEE WHAT IS ON HIS RADAR HERE.WHEN FOR US.

THERE IS PLENTY OF DATA.AFTER THAT WE SAY THAT EVERY WEEK AND THEN ON FRIDAY WE ENDUP RIGHT BACK WHERE WE WERE. WHAT MOVES THE MARKETS THISWEEK? >> IT IS A VERY RELEVANTQUESTION TODAY. WE HAVE THESE MASSIVE AUCTIONS.WE HAVE A WHOLE SLATE OF SUPPLY DO.WE HAVE PC LATER ON IN THE WEEK AND THEN WE HAVE A FED MEETINGCOMING UP IN THE NEW DOT PLOT, THE NEW PROJECTIONS.THOSE BIGGER ISSUES WILL OVERSHADOW THE SHORT-TERMDYNAMICS.

I THINK THE BACKDROP PICTUREHERE IS YIELDS CONTINUE TO SEE UPWARD PRESSURE. IF YOU LOOK WHERE WE WERE FIVEOR SIX MONTHS AGO, FROM THE DECEMBER FED WE HAD A MASSIVECHANGE. WE WERE PRESSING MORE THAN SIXCUTS. NOW WE ARE STILL INSPECTINGCUTS THIS YEAR BUT JUST ABOUT. I THINK THE ALTMAN ID WILL BETO QUESTION WHETHER THERE ARE ANY CUTS THIS YEAR OR EVEN THERISK. I AM NOT SAYING THAT HAECKELDEFINITELY COME BUT THAT.

NARRATIVE WILL COME ON THERADAR AT SOME POINT. >> TO SOME INSTEAD IT ALREADYHAS. YOU ARE SEEING IT ENTER THE BROADER MACRO NARRATIVE.WHAT IS THE CEILING ON YIELDS? WHAT IS THE FLOOR ON YIELDSRIGHT NOW? >> GREAT QUESTION. IF THERE IS A CRISIS, TO YOURYIELDS WILL SLASH QUICKLY. WE SEE THAT PRICING. TO YOUR YIELDS — WILL WE EVERSEE THIS AGAIN? I DON'T SEE ANY REASON TO RULEIT OUT BUT I THINK THE NEUTRAL.

LEVEL HAS RISEN. THE NATURALLEVEL OF RATES WILL BE HIGHER. I DON'T THINK 10-YEAR GILTS AREGOING TO GET AS LOW AS PEOPLE THINK. I DON'T SEE 10-YEAR GILTSGETTING BACK BELOW 3.5% FOR MANY YEARS TO COME.I THINK SCHOOL CONCERNS ARE TOO HIGH. I THINK EVEN IF WE GO INTO AREAL GROWTH CRISIS, I THINK WE WILL SEE THE FRONT AND COLLAPSE.WE WILL SEE AN AGGRESSIVE STEEPENING. >> THE CHART OF THE DAY ISCOPPER. BACK ON COPPER.

IT BROKE THROUGH THAT 11,000RECORD PRICING LAST WEEK. AND THEN IT SOFTENED.10,500 OR THEREABOUTS. IN THE SESSION TODAY, A BIT OFPOP IN THE PRICING. AND THEN INTERESTINGLY, THEBACKWARD DATA, THE NEAR TERM CONTRACTS VERSUS LONGER DATA,FUTURES CONTRACTS, THAT APPEARS TO HAVE BEEN WASHED OUT.THIS IS MORE ABOUT FUNDAMENTALS NOW AND SOFTER DOLLAR SEEMS TOBE PART OF THE MIX AS DOES THE DEMAND PICTURE OR AT LEAST THEEXPECTED DEMAND PICTURE AS POLICYMAKERS PUSH THROUGHFURTHER CHANGES, FURTHER EASING.

OF RESTRICTIONS IN THE CRUCIALFINANCING. A COUPLE OF FACTORS COMING TOPLAY FOR COPPER. AT LEAST THE RISK AND YOU PUTIT OUT THERE, THE RISK THAT MAYBE THE FED EVEN ASKED TOCONSIDER THE HIKE AT SOME POINT. TO WHAT EXTENT IS A TICK UP ARESURGENCE IN INFLATION ON THE BACK OF WHAT WE ARE SEEING ONTHE COMMODITY SECTOR? >> I THINK IT IS THE STICKINESSOF INFLATION. I THINK THE MARKET IS STILLCLINGING TO A VERY OPTIMISTIC DISINFLATION NARRATIVE THAT ISPOSSIBLE BUT IT IS LOOKING.

INCREASINGLY UNLIKELY.THE MOST OBVIOUS COMPONENT WE'VE KNOWN FOR A LONG TIME ISTHE STICKINESS IN THE SERVICES SECTOR. BECAUSE OF WHAT IS HAPPENING INCOMMODITIES — BECAUSE OF WHAT IS HAPPENING IN SHIPPING, WEARE NOW SEEING THE GOOD SIDE IS ALSO BACKING INTO AINFLATIONARY DYNAMIC. IT IS WEIRD THAT WE ARE STILLSO CONVINCED RATE CUTS CAN COME. THERE IS NO REASON FORINFLATION TO COME MUCH LOWER WITHOUT A SEVERE GROWTHSLOWDOWN.

I THINK PEOPLE WHO CLING TO ANARRATIVE THAT GROWTH WILL HOLD UP AND IT WILL GET RECUT, ITHINK THAT IS JUST A BONKERS VIEW.GROWTH IS GOING TO BE FUN AND WE ARE NOT GOING TO GETREQUESTS OR GROWTH WILL SLOW DOWN AND THEN WE WILL GET RATECUTS. IT IS THAT MYTHICAL SOFTNARRATIVE. BOTH EMPIRICALLY AND THEORY.WHEN YOU LOSE CONTROL OF INFLATION LIKE THIS, YOU DO NOTCONTROL IT WITHOUT OVER SESSION. CHRISTINE LAGARDE HAS ASKED THEQUESTION ABOUT YOUR WEAKNESS,.

INFLATION, IF THERE IS A GAPWITH THE FED BETWEEN THE ECB AND THE FED.MOST OF OUR TRADE IS WITH THE EURO AREA BUT THEN YOU HAVE TOFACTOR IN COMMODITIES BEING TRADED IN DOLLARS.WE LOOK AT THE POUND AND THE IMPACT ON U.K. INFLATION. >> IT IS STUCK BETWEEN BOTHWORLDS. A HAWKISH FED AND A DOVISH ECB.I THINK THAT ULTIMATELY THE BIG ECONOMIC HERE IS THE CITY WILLCUT MUCH LESS THEN A COUPLE OF MONTHS AGO.WILL THEY GET AWAY WITH MORE.

CUTS THIS YEAR?MAYBE A BIT MORE. I'M NOT SURE IF THEY WILL EVENDO THAT. THE BANK OF ENGLAND WILLPROBABLY NOT TO TOO MUCH EITHER. >> BLOOMBERG MARKETS LIVEEDITOR. NIKKI FOR THAT. YOU CAN GET UP-TO-DATE ANALYSISAND INSIGHT BY GOING TO THE MLIV LOG ON YOUR TERMINAL. I THINK TRULY, CHRISTIANNOLTING ON HIS ENTHUSIASM FOR THE EURO.HE IS KIND OF SAYING THE EURO ISN'T WHITE POST — POISED TOBREAK OUT OF THIS YEAR'S PAGE.

ANYTIME SOON.LET'S GET TO OUR STOCKS TO WATCH.OR EQUITIES TEAM IS ON STANDBY. WHAT ARE YOU WATCHING? >> STARTING IN THE BANKINGSPACE. WE HAVE A BIT OF M&A TODAY. THEY ARE DOING THE DEAL FORGERMANY. THAT IS WITH POTENTIALLY SIX OFTHE 72. THEY SEE WEALTH MANAGEMENT AS AWAY TO OFFSET DECLINING NET INTEREST INCOME AS INTERESTRATES COME DOWN IN TERMS OF.

THEIR SHARES, IT HAS BEEN A BITOF AN UNDERPERFORMER GIVEN DISAPPOINTED THAT HAD NOTRECENTLY RAISED. THERE ARE PLENTY OF ANALYSTSBEARISH ON THE STOCK. WE MIGHT SEE A BIT OF A RELIEF. WE HAVE SOME POTENTIAL M&A. THIS IS A REPORT FROM SKY NEWSOVER THE WEEKEND. IT COULD BE AS WORTH — WITH ASMUCH AS A BILLION POUNDS. THIS IS OWNED BY LEGAL ANDGENERAL. WE MIGHT SEE A BIT AHEAD OF THEDEADLINE FOR NEXT WEEK.

IT COULD POTENTIALLY BE AT ADECENT DISCOUNT. AROUND 17% ACCORDING TO ANANALYST FROM MORGAN STANLEY TODAY SEEING THAT AS APOTENTIAL GOOD PRICE. HERE IS THE MOVE ON ONE YEAR.WE'VE SEEN A BIT OF A REBOUND GIVEN THE INTEREST RATES.POTENTIALLY STARTED TO COME DOWN IN TERMS OF THE ASPECTACTIONS. WE'VE ALREADY SEEN ADULT INTHIS SPACE. THIS LOOKS LIKE COMPANY SEEINGSOME VALUE AND SEEING SOME OPPORTUNITIES.THEN WE WILL HAVE A LOOK AT THE.

STOCK.IT IS OVER IN SWITZERLAND. THERE WITH ME.THIS IS A CHEMICALS COMPANY THAT SUPPLIES INTO THEPHARMACEUTICAL SPACE. A PIPE HAS BURST AT ONE OF ITSFACTORIES. THE REASON IT STOOD OUT TO BEIS BECAUSE THERE IS A GREAT QUOTE ON THEIR SAYING THEYDON'T KNOW IF IT IS LIKELY TO CAUSE DELAYS TO THE FACTORY BUTWE EXPECT SHARES TO REACT NEGATIVELY GIVEN IT IS CRITICALFOR DRIVING GROWTH IN 2024 AND BEYOND. WE ARE EXPECTING TO SEEWEAKNESS FOLLOWING THIS.

THE CHEMICALS FIRMS DO TEND TOBE PRETTY TECHNICAL AS WE CAN SEE FROM THE SCREEN THERE.HAVE A BIT OF A REBOUND FROM THE LOWS OVER IN JANUARY.STILL BOUND BY PERCENT OVER THE PAST YEAR. PRETTY INTERESTING GIVEN THATISSUE AT THE FACTORY IN SWITZERLAND. >> THAT WAS JOE EASTON.WE THINK YOU SO MUCH FOR THAT. WE'LL TALK ABOUT WHAT IS SEENTHE BIGGEST VOLATILITY. IF FEELS LIKE TODAY IS GOING TOBE A BIT OF A MACRO DAY.

AT THE END OF THE DAY, PERHAPSA LITTLE BIT OF WEIGHT AND SEE INTO THE BACK HALF.BLOOMBERG ECONOMIC SAYING THE U.S. CONSUMER IS NOW STARTING TOCRACK. COMING UP, IT IS THE MARKETSOPEN THIS TUESDAY. STAY WITH US. THIS IS BLOOMBERG. >> CASH EQUITY TRADING COMINGBACK FROM THE U.K.. ASIA IS TRADING THIS WHOLETIME, A LITTLE BIT ON THE BACK FOR IT. NOT A MAJOR MOVE DOWN.EVEN THOUGH FUTURES ARE GETTING HIGHER, WHAT DO EUROPEANTRADERS TAKE THEIR CUE FROM?.

DO THEY HAPPEN TO THE MARKETAFTER THE LONG WEEKEND? >> ANY EXCUSE FOR A HOLIDAY INEUROPE AND GUIDED BY THE ECB SPEAK, THE CONFLICTING MESSAGESIN THE AFTERNOON. >> I NEED ALL THE HELP I CANGET ON THE PRONOUNS. >> THERE IS A BIT OFPOSITIVITY, EUROPEAN STOCKS ENDED IN THE GREEN ONEXPECTATIONS. MAYBE JULY, JUNE AND THEN JULY.THAT'S A GUIDANCE COMING THROUGH PUSHING BACK AGAINSTTHE HAWKISH COMMENTARY. ASIA WAS POSITIVE TO TURNCLOSING AND NEGATIVE TERRITORY.

ACROSS THE BENCHMARK.THAT'S INTERESTING ON THE IRON ORE STORY IS NOW DOWN.WE SEE HOW THAT REFLECTS ACROSS THE MINORS. >> WE WILL GET A CHECK ON KAIFAMOUS SENSATIONAL SIX. 24 HOURS AGO, ONE OF THE KEYREAD ACROSS THAT WE SAW WAS BROADLY HIGHER BUT THEN YOU SAWTHE LVMH, THE FERRARI, CHINA LUXURY READ THROUGH.WE WILL HAVE TO SEE SOME OF THE HEAVYWEIGHTS GUIDE THE MARKETSLOWER TODAY. I FEEL LIKE IT'S ALWAYS A HOPBACK INTO A MARKET DYNAMIC.

AFTER A LONG WEEKEND AND YOUSEE THAT ON BOTH SIDES OF THE EVENT — ON THE BOTH SIDES.IT IS VERY MUCH A MACRO WEEK. WE ARE NOW OFFICIALLY MARKINGTHE OPEN OF THE EUROPEAN MARKETS.THE FTSE 100 SLIGHT INDICATION. WE WILL WAIT FOR TRADES TOSHAKE OUT AS WE SEE WHAT'S MOVING THE BENCHMARK. TOM:FTSE 100 IS FLAT AFTER THE THREE-DAY HOLIDAY HERE IN THEU.K. 1003 20, KEEP AN EYE ON THE MINING SPACE, UP IN THISSESSION. THE DAX UP 24 POINT SO FAR INJUST THE FIRST FEW SECONDS.

ACROSS THE SECTORS WE STAYACROSS THE TOP OF THE LIST. AUTOS ARE UP.VERY EARLY DAYS AS WE CONTINUE TO LOOK AT PRINCE COMINGTHROUGH OVER IN ITALY. FTSE MADE UP 3/10 OF A PERCENT.OVER IN SPAIN, GAINS OF 20 POINTS. EMMANUEL MACRON STILL INGERMANY THAT THREE-DAY VISIT STILL CONTINUES. COLLECTIONS KEEPING AN EYE ONTHE STOCKS THAT JOE WAS MENTIONING.DESPITE THAT M&A MOVE OR SOME OF IT THAT SKY NEWS PERCENT –POINTED OUT OVER THE WEEKEND,.

DOWN 1.4% THIS MORNING, REALESTATE IN THE MIDDLE OF THE BASKET.IN THE MIDDLE OF THE STOXX 600 SECTOR. >> WE SHOULD MENTION THELEADERSHIP. ON THE UPSIDE YOU SEE COMMODITYMOVERS. ON THE MACRO FRONT YOU SEE ATURNAROUND IN THE LAST HOUR OR SO. YOU SEE OIL FLAT ON THE DAY.YOU SEE A TURNAROUND WITH COPPER. GOLD TURNING NEGATIVE.HOW DOES THAT TRANSLATE INTO THE EQUITY PICTURE.YOU HAVE TOU THAO ENERGY.

HIGHER, BP HIGHER, SHALL HIGHER.FROM AN IMAGE, THOSE ARE THE BIG MOVERS.A DISCONNECT FROM THE MACRO AND MICRO. TOM:SOMETHING INTERESTING COMING OUT OF CHINA.THEY CONTINUE IN THEIR EFFORTS TO SUPPORT THE REAL ESTATEMARKET WHERE PRICES FELL THE MOST IN THREE DECADES.THE AUTHORITIES IN SHANGHAI MAKING IT EASIER TO MAKE A HOMEPURCHASE. REDUCING THE DOWN PAYMENT YOUHAVE TO PUT DOWN AND REDUCING MORTGAGE RATES.GIVING OFFICIALS THE ABILITY TO.

REDUCE MORTGAGE RATES.EVERY TIME THESE POLICIES COME THROUGH THERE'S MOVEMENT INIRON ORE AND COPPER. YOU SEE SOME REFLECTION IN THEMINING STOCKS IN THE U.K.. THAT IS THE STORY WE CONTINUETO MONITOR. >> WHEN WE DO SPEAK TO THISBUSINESS SECRETARY LATER, WE HAVE TO ASK HOW THEY WILLAPPROACH CHINA AND HOW PROTECTIONIST STICK WE WILL BECOMPARED TO THE EU AND THE U.S. BIKES ULTIMATELY THOSE POLICIESARE SOMETIMES POPULAR WITH THE VOTER DEMOGRAPHIC ON BOTH SIDESOF THE ATLANTIC AREN'T ALWAYS.

ECONOMICALLY FEASIBLE AS WE SAY.ANOTHER POINT YOU BRING UP ON THE CHINA SITUATION, WE DID NOTHAVE A READ THROUGH YESTERDAY. YOU SEE A FIXING.THAT COMING INTO ASSIGNMENT BETWEEN CHINA, JAPAN AND SOUTHKOREA. ALL THREE FIGHT WHEN IT COMESTO THE WEAKENING OF THE CURRENCY AND DEMAND FOR THATEXPORT BUSINESS INTO THE STATE'S. TOM:THERE SOME CROSSOVER, PARTICULARLY IN TERMS OF THEMANUFACTURING ON THE EXPERT — EXPORT FOR THE MARKET STORY.CHINA WITH THOSE COMPETING.

TENSIONS DON'T WANT TO SEE THATMASSIVE OUTFLOW IF THEY SOFTEN THE CURRENCY TOO MUCH BUTCLEARLY THEY FEEL THE PRESSURE FROM HIGHER RATES IN THE U.S. >> WE WILL WATCH THEGEOPOLITICS ON THE DATA AS WELL. THE OTHER PIECES OF DATA I HAVEMY ION HAS MORE TO DO WITH THE BOND MARKET THAN THE STOCKMARKET. THERE'S A DIFFERENCE WHEN ITCOMES TO THE ASSET CLASS. THE TREASURY KICKS OFF BUYBACKS.REFUNDING'S COMING OUT INTO THE REST OF THE WEEK.CORE PCE DATA ON FRIDAY.

PLENTY TO DIGEST. JOINING USNOW, THE COHEAD OF PUBLIC MARKETS AND PORTFOLIO MANAGER.WE THANK YOU SO MUCH FOR JOINING US THIS MORNING, LET'SDIVE INTO THIS BOND MARKET BECAUSE I REALLY DO BELIEVETHIS BOND MARKET HAS RICKEL — RIPPLE EFFECTS INTO THE BONDMARKET AND FX MARKET. HOW MUCH VOLATILITY CAN WEEXPECT IN THE PUBLIC DEBT MARKET WHEN IT COMES TO THEDATA WE WILL GET THIS WEEK? >> GOOD MORNING.FOR THE DATA OVER THE NEXT FEW MONTHS, WHAT WE ARE THINKING ISTHAT THE MARKET HAS ANTICIPATED.

A SLOWDOWN IN INFLATION, WHICHWE ARE SEEING. IT MAY NOT COME DOWN AS RAPIDLYTO THE 2% TARGET THAT POLICYMAKERS ARE HOPING, BUTIT'S GOING IN THE RIGHT DIRECTION.SO THAT IS ALREADY ANTICIPATED ABOUT THE MARKET IN THE LONGEREND. BUT NONETHELESS, THE MARKET THINKS THERE SHOULD BE A RALLYWHEN WE GET THE RATE CUTS. WHEN WE HAVE PRICED IN TWO ANDA HALF RATE CUTS IN EUROPE, ONE AND A HALF IN THE U.S.AND THE U.K., WHICH PROBABLY SOUNDS GREAT GIVEN WHERE THEECONOMY IS GOING.

WE ARE ACTUALLY CAUTIOUS ONRATES. NEAR TERM WE THINK THEY AREFLUCTUATING, BUT WHEN YOU LOOK AT IT, IT DOESN'T MAKE SENSEFOR THE LONG END TO TRADE WHERE IT IS, IF WE THINK IT'S ONLY COMING DOWN SLIGHTLY, AND WETHINK A LOWERING OF INTEREST RATES MAY PROVE THE OUTLOOK.GENERALLY, WE ARE CAUTIOUS. QUAKES IT'S INTERESTING THATYOU SAY THAT, LOWERING INTEREST RATES MAY IMPROVE THE ECONOMICOUTLOOK. BUT WHEN WE SEE THE PIT INTOTHE FRONT END OF THE CURB,.

WHICH WE AREN'T SEEING AT THEMOMENT, WHICH WE DO GOING INTO ELECTION SEASON IN THE STATES,HOW MUCH HAS AN IMPACT ON THE REAL ECONOMY, I.E., ARE THEMARKETS PRICING A LITTLE MORE IN CONTROL ON THE EFFECTS OFREAL ECONOMY INSTEAD OF WAITING FOR THE LAG THAT MAY OR MAY NOTCOME FROM THE FEDERAL RESERVE? QUICKTAKE THINK THE EXPECTATIONIS THAT WHOEVER WINS, THERE WILL BE CONTINUED STIMULUS FORTHE U.S. ECONOMY AND PROBABLY MOREINFLATIONARY STIMULUS AND OTHER POLICY MEASURES LIKE CONTINUEDIMPORT TARIFFS.

BUT ALSO STIMULUS WOULD ALSO BEINFLATIONARY, GENERALLY, I THINK WE BUT ALSO THE MARKET ISBROADLY EXPECTING IS AFTER THE MARKET IS OUT OF THE WAY THEREWILL BE POLICY MEASURES AND THEY ARE NOT GOING TO BEPOSTERITY MEASURES, THEY WILL BE FISCAL STIMULUS MEASURES. WHEN WE ALREADY SEE THEOUTSTANDING AMOUNT OF DEBT HAS INCREASED IN THE U.S., AND WESEE FURTHER STIMULUS MEASURES, FIX CUTS UNDER TRUMP THAT ISEXPECTED, THEN WE WOULD SEE CONTINUED FEWER TAX RECEIPTSAND WE WOULD HAVE TO SEE IF.

THEY ECONOMY CAN GROW ENOUGH TOUPSET IT AND CLEARLY THE INFLATION REDUCTION ACT WASALSO A STIMULUS THAT WAS MOSTLY DRIVEN BY TAX INCENTIVES.SO, YES, IT HAS CAUSED A BIG BOOST IN GROWTH BUT FOR ANINCREASE IN TAX RECEIPTS THERE HAS BEEN LESS THEN A GROWTHTHAT COULD COME WITHOUT THE STIMULUS PROBLEM. TOM:WHEN YOU THINK ABOUT THE STIMULUS, WHAT COULD BE COMINGTHROUGH THE PIPE, PLUS A VIEW FROM THE FED CUTTING ANDEXPECTATIONS, EVEN IF IT'S MODERATED FROM SIX TO FEWERTHAN TWO, DOES THAT GIVE YOU.

THE APPETITE OR THE PROPENSITYTO WANT TO PUSH FURTHER ALONG THE RISK SPECTRUM WHEN IT COMESTO CREDIT? IS HIGH-YIELD LOOKING MORE ATTRACTIVE IN THAT ENVIRONMENT?QUAKES WHEN YOU LOOK AT THE FUNDAMENTAL PERSPECTIVE, THEECONOMY GOES WELL, THAT WOULD BE A GOOD TIME TO INCREASE RISKAND PUTTING YOU TO GO INTO THE LOWER END OF THE LEVEL OFFINANCE SPACE. WHAT WE SEE IS THAT, GIVEN THEINITIAL YIELDS THAT YOU ARE GETTING, IT'S ACTUALLY THEINCREMENTAL VALUE IS NOW.

DIMINISHING, SO YES, YOU GET ANADDITIONAL HEARING. BUT WHEN YOU LOOK AT HIGH-YIELDTHAN LOAN MARKET AND YOU DIVIDED UP WHERE THE DEVIL BEMARKET IS ALWAYS THE ONE THAT SUFFERS LESS DEFAULT RATES INLESS RESTRUCTURING, THAT IS ABOUT 150 OVER THE TRIPLE BE,SO IT'S NOT EVEN 150 OVER, BUT SORT OF THE 150 SPREAD, WHICHIS NOT SIGNIFICANTLY MORE THAN THE TRIPLE BE MARKET, BUTSOMETHING FAIR. SORRY? TOM: I THINK WE HAVE CONNECTIONISSUES. SOMETIMES THIS HAPPENS, LIVE TV.CONTINUE, PLEASE.

QUAKES YES, SORRY, SOMEBODY ISINTERRUPTING ME FROM BLOOMBERG. TOM:YOU ARE ESSENTIALLY SAYING YOU ARE NOT BEING REWARDED AT THISPOINT FOR TAKING ON MORE RISK? COULD ACCESS THE THING, WE ARENOT REALLY REWARDED PARTICULARLY WELL AND I THINKWHAT I WANTED TO SAY IS WHEN WE GO INTO THE SINGLE E MARKET,I'M GOING BACK A LITTLE BIT, THIS IS STILL A LEGACY OF THEVERY LOW INTEREST RATE ENVIRONMENT.AND WITH THIS LOW INTEREST RATE ENVIRONMENT WE ARE SEEING IT'SVERY LOW AND THE CASH PRICES OF.

THE BONDS ARE STILLSIGNIFICANTLY BELOW 100, SO THERE IS THIS NEW MOVEMENT OR ATREND WHERE MARKET PARTICIPANTS ARE LOOKING TO SAY THIS MAY BESUFFERING FROM FINANCING RATES BECAUSE IT HAS A SIGNIFICANTAMOUNT OF DEBT OUTSTANDING WHAT I HAVE TO REFINANCE AND AHIGHER COUPON, IT MAY BE STRUGGLING A LITTLE BIT ANDWHAT DON'T WE TAKE ADVANTAGE OF THE LOW CASH PRICE TO SEE WEDON'T HAVE TO REPAY AT 100, WE CAN ACTUALLY EXTEND MATURITYAND WE ARE USING THIS LOWER CASH PRICE SO, THERE AREDEFINITE RESTRUCTURING WHERE IT.

IS TAKING PLACE, SO WE NEED TOBE CAREFUL NOT TO TAKE TOO MUCH RISK BECAUSE THAT COULD LENDTHE LAYERING WHERE NEW MONEY IS COMING IN AT A GETS BOOSTED INA PRIORITY IN THE EXISTING LENDER WILL PUSH DOWN IN THECAPITAL STRUCTURE AND THAT IS SOMETHING WHERE AN INVESTORCOULD LOSE SIGNIFICANT DEMAND AND WE ARE MORE CAUTIOUS ONTHAT BECAUSE IT COULD UPSET THE YIELDS.SO WE ARE VERY CAUTIOUS ON THE LOWER END OF THE HIGH-YIELDMARKET AND THE LOAN MARKET BECAUSE OF THOSE RESTRUCTURINGMECHANICS.

>> LET ME JUST FINALLY ASK YOU,HOW LONG CAN THE PRIVATE CREDIT LAST WHEN HAVE RATES COMINGDOWN, AND HOW COULD THERE NOT BE A SPIKE IN DELINQUENCIES IFTHE BOOM JUST GOES ON, AND ON, AND ON? >> ONE IS WHAT IS THEWILLINGNESS AND THE ABILITY FOR ADDITIONAL MONEY AS I JUSTBRIEFLY INDICATED. THERE ARE WAYS AROUND IT TOEXTEND IT BECAUSE USUALLY YOU RAN OUT OF LIQUIDITY.IF THE DEBT BURDEN IS BECOMING TOO HEAVY BECAUSE THE DEBTLEVEL IS SO HIGH ON WHATEVER.

INTEREST THEY NEED TO PAY ISEATING INTO THE FREE CASH FLOW TOO MUCH, THAT IS ONE AND YOUCOULD DO IT WITH A HIGHER EQUITY CONTRIBUTION, OR YOU CANCURATE WHERE THEY SAY, I WILL WRITE OFF 20% OF THE DEBTBECAUSE RATHER THAN REFINANCING AT 100 OR 80, YOU EFFECTIVELYWRITE THE DEBT OFF. IT MAY NOT BE REFLECTED IN THEDEFAULT RATE, BUT CLEARLY WHOEVER IS INVESTED IN THEDEBT, THEY COULD TAKE SOME SORT OF CUT.I THINK THERE IS MORE GOING ON BEHIND THE SCENES THAN WHATMEETS THE EYE.

>> CERTAINLY SOMETHING WE WILLKEEP A CLOSE EYE ON IT A CLOSE TOPIC OF THE EU AND U.K.AND ALL AROUND THE WORLD. COHEAD OF PUBLIC MARKETS ANDPORTFOLIO MANAGER. WE THANK YOU SO MUCH.A QUICK CHECK ON'S — ON SOME OF THE SENSATIONAL STOCKS.YOU ARE SEEING THEM BROADLY LOWER THIS MORNING.ASML THE BIG MOVER THIS MORNING, I SHOULD SAY IN TERMSOF INDEX CONTRIBUTIONS, SCHNEIDER ELECTRIC DOWN ALMOST1%. IT IS A STOCK GOING EX-DIVIDENDNET-NET.

A LITTLE BIT OF A MAD TRADEOUTSIDE OF ASML AND SCHNEIDER ELECTRIC.A LITTLE MORE EXCITED ON INDIVIDUAL STOCKS.JOE EASTON HAS THOSE FOR US THIS MORNING. JOE:IT DOES HAVE SOME EXCITEMENT, WE DON'T LOOK AT THIS ONE TOOMUCH, BUT IT IS A BIOTECH STOCK AND IT'S UP AROUND 78% TODAY,SO THEY GOTTA TAKE OF THE BID. THIS IS THE JAPANESE INDUSTRIALFIRM THAT'S MAKING A BID AT ALMOST 100% PREMIUM FOR THATFIRM. A BIG GAME TODAY. WE'VE GOT THE NEWS FROM SKYNEWS OVER THE WEEKEND, THEY.

COULD POTENTIALLY BE LOOKING ATA DEAL AT AROUND A BILLION POUNDS.ALSO SPECTATING AS A POTENTIAL BIDDER, BUT IT DOES LOOK LIKEIT IS THE FAVORITE. AND THEY ARE EDGING UP 7/10 OF1% AFTER NEWS OF THEM BUYING H AND A BANK, THE WEALTH MANAGEROVER IN GERMANY, A LOT GOING ON IN THE DEAL SPACE TODAY.BUT THE BIG GAINERS UP 78%. THIS MORNING, A COUPLE OF OTHEREARNINGS TO BRING YOU THE PUBLISH OF THE RESULTS OF THECLOSE OF TRADING ON FRIDAY. THEY LOOKED SLIGHTLY WEAK.POTENTIALLY ALREADY PRICED IN.

THERE IS A TAKEOVER SITUATIONON THAT STOCK AT THE MOMENT. IN TERMS OF FINANCIAL EARNINGS,WE GOT INTERMEDIATE CAPITAL IN THE U.K.AND EFG BOTH IN THE WEALTH MANAGEMENT IN ICG IN THEPRIVATE EQUITY SPACE. ICG GAINING 1.3%.NOT TOO MUCH MOVEMENT IN THE EFG OVER IN SWITZERLAND. THIS IS IN REAL ESTATE, HAD ARECENT DEBT RESTRUCTURING AND NUMBERS LOOKING TO REASSURE HERTHAT SECTOR THAT HAS BEEN HAMMERED RECENTLY.WE SEE IT COMING UP AROUND 6%.

THIS MORNING.WE WILL GO OVER TO SPAIN BECAUSE THERE IS A REPORT INSPANISH MEDIA THAT THE GOVERNMENT IS LOOKING TOPOTENTIALLY EASE A — AND POTENTIALLY REMOVE IT FROM THEENERGY SECTOR. THAT WAS ANNOUNCED BY PEDROSANCHEZ LESS THAN TWO YEARS AGO. IT IS BOOSTING SOME OF THOSESTOCKS. REPS ARE GAINING 1.3%. ALL OF THOSE STOCKS GETTING ABIT OF A BOOST THIS MORNING. IN TERMS OF YOUR MORNING CALLS,IT'S A COUPLE OF OUR FAVORITE SECTORS, FIRSTLY, GIN ANDTONIC, SURPRISINGLY THIS HAS.

CUT TO SELL AT GOLDMAN SACHS.TAKE A LOOK AT THE DAMAGE. IT'S DOWN SEVEN PERCENT.GOLDMAN RECOMMENDING YOU SELL. WEAKNESS IN U.K.COCKTAIL BARS IF YOU CAN BELIEVE THAT LOOKING AT THEWEEKEND. FINALLY, THE LUXURY SPACE, ANDMS. — TERM AS GETS AN UPGRADE. — HERMES IS MORE DEFENSIVE ANDA HAS A PRICE POINT THAT WILL KEEP GROWING THROUGHOUT THERECESSION. THAT IS GAINING .5 PERCENT.BIRKIN BAGS AND GIN AND TONIC SITTING ON YOUR MORNING CALL.TOM:.

I COULD SEE YOU HAVING A BROKENBAG. I CAN SEE IT OVER THE SHOULDER,ONE OF THE MODEST ONES. >> THAT'S NOT HOW YOU HOLD ABIRKIN. TOM: PLENTY MORE COMING UP INCLUDINGEU ELECTIONS, WE ARE TALKING TO AN MEP ON THE VIEW AS THERE ISA BIT OF A SHIFT TO THE RIGHT AND WE WILL SEE IF THATCONTINUES. WE WILL GET THE VIEW FROM ANMEP. STAY WITH US. THIS IS BLOOMBERG. ♪ >> THIS IS MARKETS TODAY, 90MINUTES INTO THE EUROPEAN.

TRADING SESSION.TRADERS WAKING UP AFTER THE LONG WEEKEND IN THE U.K.IN THE U.S.. STOCKS IN GERMANY HIGHER.IN FRANCE, THEY ARE LOWER. WE COULD TAKE A DEEPER DIVEINTO THE POLITICS OF EUROPE NOW. THE EU PARLIAMENTARY ELECTIONSKICKING OFF NEXT WEEK, NEARLY 400 MILLION VOTERS ELIGIBLE TOCHOOSE 720 MEP'S, RENEW EUROPE IS THE THIRD LARGEST GROUP INTHE EUROPEAN PARLIAMENT, BUT DIVISIONS THREATENED TO SPLITTHAT CENTRIST GROUPING. JOINING US NOW IS THE VICEPRESIDENT AN MEP WHO IT IS IN.

BUDAPEST. LOVELY GREENBUDAPEST, IT HAS TO BE SAID. LOVELY TO HAVE YOU WITH US ONTHE PROGRAM. LET ME START BY ASKING THEQUESTION THAT WILL UP AND ON THE MINDS OF EMMANUEL MACRONAND OLAF SCHOLZ THIS WEEK WHEN THEY MET.IS THIS ELECTION GOING TO BE DOMINATED BY THE FAR RIGHT? >> FIRST OF ALL, THANKS FORHAVING ME AND I CERTAINLY HOPE THIS ELECTION WOULDN'T BEDOMINATED BY THE FAR RIGHT, BUT BY THE PRO-EUROPEAN DEMOCRATICFORCES WHO HAVE BEEN IN THE.

MAJORITY OF THE EUROPEANPARLIAMENT FOR THE PAST FIVE YEARS AND WHO DELIVERED REALLYGROUNDBREAKING RESULTS WHEN IT COMES TO THE RECOVERY FUND ANDTHE SWIFT RESPONSE WITH RUSSIA'S BRUTAL INVASION OFUKRAINE HAPPENED OR WHEN WE MOBILIZE JOINTLY TO PROTECT THEPOPULATION DURING COVID. I HOPE THERE WILL BE A PUSHAGAINST THE RISE OF THE FAR RIGHT AND WE WILL CONTINUE TOGROW AS A STRONGER DEMOCRATIC EUROPEAN COMMUNITY. TOM:WHAT SHOULD THE POLICY PUSHBACK BE TO ADDRESS THAT SHIFT TO THERIGHT? WHETHER IT'S THE AFD IN.

GERMANY, WHETHER IT'S ALEADERSHIP YOU SEE NOW IN ITALY, IN THE NETHERLANDS, ANDOF COURSE MARINE LE PEN OVER IN FRANCE TAPPING INTO A WELLSTREAM OF DISCONTENT AND POLLING STRONGLY WHEN IT COMESTO MARINE LE PEN IN FRANCE, WHICH SHOULD YOU SEE THATSHOULD BE PUT IN PLACE IN A EUROPEAN LEVEL? >> I CERTAINLY THINK THAT THEFAR RIGHT IS STRONG BECAUSE THEY ARE SELLING SNAKE OIL,THEY ARE PROMISING SWIFT RESULTS IN MIRACLE SOLUTIONS,PROBLEMS WHICH ARE ALREADY.

COMPLICATED.I THINK IT'S VERY IMPORTANT TO SAY THAT SOLUTIONS AND DELIVERYHAS NEVER COME FROM THE EXTREMES, ONLY THE CENTER ANDPRO-EUROPEAN MATURITY CAN DELIVER ON STRONG ISSUES LIKETHE GREEN TRANSITION AND ON THE PROTECTION OF EUROPE WIN A WARIS IN OUR NEIGHBORHOOD, OR WHEN IT COMES TO STRENGTHENING OURDEMOCRACY, WHICH IS ALSO ON THE BALLOT IN MEMBER — MANY OF OURMEMBER STATES, INCLUDING HUNGARY.I THINK WE HAVE TO FOCUS ON OUR RESULTS AND ALSO ON HOW WE PLANTO CONTINUE THIS FIGHT FOR.

MAKING EUROPE MORE PROSPEROUSAND HOW WE CAN DELIVER MORE FOR OUR BUSINESSES AND OUR PEOPLEWHO ARE CERTAINLY ASKING FOR SOME EXTRA HELP. >> WOULD YOU BE WILLING, INSERVICE OF THAT GOAL TO WORK WITH MEMBERS OF THE ECR? >> I THINK THE RENEWED GROUP HASMADE IT VERY CLEAR, THE LIBERAL GROUP IS NOT OPEN TO COALITIONSWITH THE ECR GROUP OR WITH THE ID GROUP.WE ARE AIMING TO CONTINUE WITH THE CENTRIST MAJORITY BUT WEHAD IN THE PARLIAMENT FOR THE.

PAST FIVE YEARS.I CERTAINLY THINK THAT IN THE TIME OF PERIL, WHEN MANY MEMBERSTATES EXPERIENCE DEMOCRATIC BACKSLIDING, I HOPE THAT ALSODPP IS ON BOARD WITH KEEPING EUROPE ON THE CENTRIST PATH, ON THE PRO-EUROPEAN PATH AND JOINCOMMITMENT TO PROTECT OUR PEOPLE FROM WAR AND FROM THEECONOMIC CRISIS THAT WE HAVE TO STEP UP AGAINST. >> ARE THEEU'S CLIMATE GOALS AT RISK AND HOW MUCH HAS THE CLIMATE AGENDACHANGED SINCE THE 2019 ELECTIONS?.

>> I THINK THIS PARLIAMENTDELIVERED MAJOR BREAKTHROUGHS WHEN IT COMES TO THE FIGHTAGAINST CLIMATE CHANGE. WE HAD THE GREEN DEAL WHERE WEARE LEADERS AS THE EU AND THIS IS A COMMITMENT WE HAVE TOCONTINUE TO DELIVER ON FOR FUTURE GENERATIONS BUT ALSO FORTHOSE STRUGGLING FROM THE EFFECTS OF CLIMATE CHANGE.RIGHT NOW, FROM THE CROSS, FROM THE FLOODS WE HAVE SEEN ALLAROUND EUROPE, AND I'M VERY WORRIED THAT THIS AGENDA CAN BEIN PERIL AND ALSO IF THE EPP CONTINUES ITS COURSE WITHLOOKING AWAY FROM THE JOINT.

COMMITMENTS WE MADE AT THEBEGINNING OF THE MANDATES. FOR US IT'S CLEAR WE HAVE TOPROTECT THE GREEN AGENDA AND CONTINUE WITH THE COALITIONTHAT KEEPS DELIVERING FOR THE SAKE OF THE CLIMATE. TOM:YOU SIT ON THE EU'S FOREIGN AFFAIRS COMMITTEE, YOU HAVEBEEN A MEMBER OF THE DELEGATION IN TERMS OF RELATIONS WITH THEU.S., WHAT WOULD A TRUMP PRESIDENCY MEAN FOR THE EU? >> A TRUMP PRESIDENCY WOULDCERTAINLY MEAN THAT WE HAVE TO PLAY A STRONGER ROLE, BUT IT'SCLEAR THAT IT'S ALSO THE CASE.

IF JOE BIDEN GETS REELECTED.WE HAVE BEEN A LITTLE ROUGH — A LITTLE BROTHER OF THE U.S.FOR FAR TOO LONG, WE HAVE TO BE OPTIMISTIC IN THE WAY WE CANPROTECT OURSELVES IN THE ECONOMY, I THINK THIS STRATEGICSOVEREIGNTY PATH IN MANY EUROPEAN LEADERS HAVE BEENCHAMPIONING IS THE RIGHT WAY, AND STRONG EUROPE NEEDS ASTRONGER TRANSATLANTIC RELATIONS SO BECAUSE OF THERELATIONS OF BOTH SIDES AND BOTH PARTNERS, IT CANNOT BERELIED UPON ON WHAT HAPPENS WITH THE ELECTIONS.WE HAVE TO RELY ON OURSELVES.

WITH EUROPE. >> AT THE CORE OF THATCONSENSUS, LET'S LOOK IN WORDS. HE TALKED A LOT ABOUT THEDEFENSE STORY IN THE FOREIGN AFFAIRS STORY, DOES IT CONCERNYOU THAT HUNGARY IS AT ODDS WHEN IT COMES TO A TOWARDSUKRAINE? >> IT IS EXTREMELY CONCERNINGBUT NOT ONLY CONCERNING, IT'S SHAMEFUL WHEN I SEE THEHUNGARIAN GOVERNMENT CONSTANTLY VETOING KEY ACTIONS IN THEEUROPEAN COUNCIL, THE VETO DOES NOT SERVE THE INTEREST OFEUROPE, THEY DO NOT SERVE THE.

INTEREST OF UNCARING PEOPLE,THEY ONLY SERVE THE INTEREST OF VLADIMIR PUTIN, I THINK IT'SIMPORTANT TO SHOW THAT WE HAVE A VERY STRONG OPPOSITIONSTANDING OF UKRAINE AND WHO IS NOT IN FAVOR OF SELLING OUT OURCOUNTRY FOR RUSSIA AND CHINA. THAT IS WHAT WE EXPERIENCED >>VICE PRESIDENT OF THE RENEW EUROPE GROUP, THANK YOU FORJOINING US AS WE LOOK AHEAD TO THE EUROPEAN ELECTIONS.GREAT TO HAVE YOU ON THE PROGRAM.WE WILL CONTINUE TALKING ABOUT POLITICS NEXT.LABOR IN THE U CAPE PLEDGING TO.

BRING GROWTH BACK IF IT WINSTHE JULY ELECTION. WE WILL SPEAK TO THE SECRETARYOF STATE LABORS JONATHAN REYNOLDS. THAT'S COMING UP NEXT.STAY WITH US. THIS IS BLOOMBERG. >> THIS IS MARKETS TODAY, 30MINUTES INTO THE EUROPEAN TRADE. WE ARE SEEING SOME INDIVIDUALMOVERS. BUT IT KINDA FEELS LIKE WE AREKNEE-DEEP IN ELECTION CHATTER. BETWEEN THE U.K., EU, SOUTHAFRICA WITH THE U.S. IN THE BACKGROUND WITH A SIXMONTH DOWN THE ROAD PROBLEM AND IT FEELS LIKE THE MARKETS ARESTARTING TO WAKE UP, STARTING.

TO LOOK AT THE NITTY-GRITTY INPOLICY BOTH IN THE EU AND THE U.K. >> WE DON'T TALK TO MANIFESTOESIN THE U.K., BUT WE EXPECT THE LEAKS WILL COME OUT IN THE NEXTFEW DAYS. MARKET MOVING WILL BE GIVING.WE KNEW THAT THE POLL SUGGESTS IT WILL BE ELATED — THE LABORMAJORITY. WE WERE SPEAKING TO MICHAEL WHOSAID MARKETS ARE EXTREMELY RELAXED ABOUT A LABORGOVERNMENT. TOM: INVESTORS ARE RELAXED.

IF THAT OR IT COMES TO THE FOURON JULY THE FIFTH, BUT IT DOES RAISE THE QUESTION A MASSIVEYEAR FOR ELECTIONS WHETHER SOUTH AFRICA, U.K., U.S., ANDIN INDIA HOW YOU PRICING THAT POLITICAL RISK.QUAKES LABOR IN THE U.K. WANTS TO FIGHT THE SELECTION.THIS SHADOW CHANCELLOR IS EXPECTED TO SAY IF HE CAN BRINGBUSINESS BACK TO LABOR, YOU CAN BRING IT BACK TO BRITAIN.IT PALES IN COMPARISON TO THE U.S. GROWTH, BUT U.K.IS SHARED BY EUROPE, SO I WOULD ASK, ISN'T IT FAIR — IS ITFAIR TO PUT ALL THE BLAME ON.

THE GOVERNMENT?WE CAN DISCUSS THAT WITH THE MAN WHO POLL SUGGESTS WILL BEBRITAIN'S NEXT BRITISH SECRETARY.MORNING, GOOD TO HAVE YOU ON THE PROGRAM.YOU'VE BEEN SPEAKING TO VARIOUS BUSINESS LEADERS ABOUT WHATTHEY WANT FROM YOU IF YOU WIN. WE SPOKE TO MARTIN WHO SAID,THE WORK ITS RIGHTS REFORMS PROPOSED BY YOUR DEPUTY LEADERANGELA ARE YOUR ACHILLES' HEEL, THE THING THAT WORRIES HIM BIGTIME. IT IS A BIG U.K. BUSINESS, WHY IS MARTIN WRONG?.

>> IT IS A SIGNIFICANT DAY INWE WANT TO FIGHT IT ON WE THINK THE PERFORMANCE OF THE BRITISHECONOMY AND THAT'S WHAT MADE LIVING STANDARDS AND TAXATIONIN THE U.K. IS ONE THAT COULD BE ROUTABLEAND THAT'S IN THE HEART OF THE LABOR PLANS AND WHAT RACHEL WASSAYING IS IT'S GREAT TO HAVE THIS ENDORSEMENT BY THE MOSTSIGNIFICANT BUSINESS FIGURES. I WOULD PUSH BACK ON THE PLANTO MAKE WHAT WE SEE THE U.K. IS OBVIOUSLY A SET OF DATAAROUND GROWTH IN AND PRODUCTIVITY IN INVESTMENT THATNEEDS TO BE IMPROVED BUT WE.

HAVE TO DO THAT IN A WAY THATBENEFITS EVERY PART OF THE U.K. AND WHICH WILL ALSO MAKE SURETHAT PEOPLE HAVE THE KIND OF SECURE JOBS A STRONGER ECONOMYIS BUILT AROUND. WE BUILT THAT PROGRAM WITHINPUT FROM TRADE UNIONS AND BUSINESS FIGURES.IT'S A PART OF OUR PROGRAM AT THE SAME TIME, HAS ASIGNIFICANT BUSINESS ENDORSEMENT FROM THE OVERALLPOSITION. WHEN IT COMES TO THINGS LIKE FIRE AND REHIRE, BUSINESS IS ATTIMES NEED TO RESTRUCTURE, BUT.

WE NEED TO DO THINGS THATAREN'T — LET'S BE CLEAR, THE MAJORITY OF BUSINESS LEADERS INTHE U.K. VALUE THEIR WORKFORCE, THEYWANT TO INVEST IN WORKFORCE. THEY RECOGNIZE TALENT IS THEIRMAJOR ASSET AND THEY WANTED TO DO THE RIGHT THING.WORKING BUSINESSES AT THE HEART OF WHAT U.K.NEEDS GOING FORWARD INTO THE NEXT GOVERNMENT.QUITE SO YOU'VE GOT A DIFFICULT BALANCE BETWEEN WORKERS RIGHTSAND WHAT BUSINESS WANTS. ANOTHER DIFFICULT DECISION ISON FISCAL POLICY.

THE INSTITUTE FOR FISCAL POLICYSAYING YOU CANNOT JUST CROSS YOUR FINGERS AND HOPE GROWTHWILL SPARE YOU TOUGH CHOICES. SO SPECIFICALLY, WHICHDEPARTMENTS ARE GOING TO HAVE THEIR BUDGETS CUT? >> I UNDERSTAND BECAUSE OF THECONSERVATIVE PARTY'S SPENDING PLANS IN THE 1% RISE IN REALTERMS SPENDING AND WHAT THAT MEANS FOR THE APARTMENTS.PEOPLE ASKED THAT QUESTION BUT AT THE HEART OF LABORS PLANS ITHINK WE HAVE VERY STRONG REASONS TO SAY WHY THAT IS THECASE AND THE REASON PEOPLE ARE.

PAYING IN THE U.K.,HISTORICALLY HIGH TAX BURDEN FOR QUITE POOR PUBLIC SERVANTS.IF YOU LOOK AT THE SPECIFICS, LOOK AT OUR PLANS FOR BETTERRELATIONSHIP WITH THE EUROPEAN UNION. SPECIFICS LIKE AN SPSAGREEMENT. MUTUAL RECOGNITIONQUALIFICATION , LABOR ABILITY, THESE ARE PRACTICAL THINGS THATWILL IMPROVE THE COMPETITIVENESS AND MAKE GROWTHMORE STRONG. WE'VE GIVEN BUSINESSES THECHANCE TO GO BACK AND INVEST IN THEIR WORKFORCE.LOOK AT PLANS FOR STABILITY AND.

INDUSTRIAL STRATEGY.THESE ARE PRACTICAL, MEASURABLE THINGS THAT WILL IMPROVEPERFORMANCE OF THE U.K. ECONOMY. STRONGER ECONOMY GOING FORWARDTHAT WE THINK IS THE SAME TO THE MESSAGE WE WANT TO CONVEYAND WHAT WE WANT PEOPLE TO SUPPORT WHEN IT COMES TO THEIRCHOICES ON THE FOURTH OF JULY. TOM:WHEN YOU TALK ABOUT THAT WITH THE EU, IF WE GET A SECONDTURN, LABOR GOVERNMENT, IF WE HAD A SECOND TERM LABORGOVERNMENT, WHICH HE WARNED THAT A UNION GIVEN THAT ON SOMEBASIS YOUR VERY OWN TEAM OF.

BLOOMBERG ECONOMICS YOU COULDADD 4% OF GDP WITH A CUSTOM — UNION AGREEMENT? >> IS A BIG HURDLE FOR LABOR TOGET YOU TO BE THE CONSERVATIVE PARTY BASED ON WHERE WE WERE IN2019. BUT THE REASON WE HAVEN'T GOTTHAT FORWARD AND ARE NOT LOOKING AT THAT, AND IUNDERSTAND HOW DIFFICULT RATES HAVE BEEN FOR MANY BUSINESSES,WE RECOGNIZE ONE OF THE PRINCIPAL COURSES OF HOW THEU.K. IS VIEWED AROUND THE WORLD BYINTERNATIONAL INVESTORS.

IS THE POLITICAL INSTABILITYWHERE WE HAVE SEEN THREE BRITISH PRIME MINISTERS.IT'S EMBARRASSING THAT HAS A REAL ECONOMIC EFFECT.WE FEEL IF WE WERE TO RELITIGATE, RELIVE SOME OFTHOSE BATTERS AROUND THE CONSTITUTIONAL STRUCTURESPOST-BREXIT, WE SIMPLY COULD NOT PROVIDE THE POLITICALSTABILITY, WHICH PEOPLE NEED MORE THAN ANYTHING ELSE WHEN ITCOMES TO DOING BUSINESS IN THE U.K. WHAT WE PUT FORWARD AREPRACTICAL TRADE BASED IMPROVEMENTS.WE SHOULD ALWAYS BE LOOKING TO.

HAVE BETTER TRADINGRELATIONSHIPS WITH EVERY JURISDICTION AROUND THE WORLD.THERE IS A GENUINE BETTER WAY FORWARD.IT'S NOT ABOUT POLITICS, IT'S ABOUT HOW TO GIVE PEOPLECONFIDENCE THAT THE POLITICAL INSTABILITY OF THE U.K.WOULD TURN A CORNER OF THE LABOUR GOVERNMENT IS ELECTED.IT IS NOTEWORTHY THAT MAY BE FOR THE FIRST TIME I'M AWAREOF, WE CAN MAKE A CASE TO BUSINESSES IN THE U.K.AND SAY THE POLITICAL RISKS IN THIS ELECTION IS THECONTINUATION OF A CONSERVATIVE.

GOVERNMENT WHICH IS GOING ONEWAY OR THE OTHER, REALLY QUITE AN UNUSUAL ANNOUNCEMENT ON THEELECTION CAMPAIGN. THAT THE REAL STABILITY WOULDCOME FROM A CHANGING GOVERNMENT TO A LABOR ADMINISTRATION.IT IS SIGNIFICANT BUT WE RECOGNIZE WIFE FOR THE LAST FEWYEARS OF POLITICAL LIFE IN THE U.K.. >> TALK ABOUT HOW YOU AREADJUSTING THE BIGGER COMPANIES, WHO HAVE BEEN INVESTED IN THEU.K. FOR DECADES TO COME AND ARE LOOKING AT PARIS, FRANKFURT ANDARE RESPONSIBLE FOR HIRING IN.

THE U.K., WHAT CAN A LABORGOVERNMENT DO TO APPEAL TO THE BIG CORPORATE SPACED HERE INLONDON? GREXIT THE CONVERSATION I HAVEFOUND MYSELF HAVING ON SEVERAL OCCASIONS, EVEN IN SECTORSWHERE I THINK THE U.K. HAS A HISTORICAL ANDCOMPETITIVE ADVANTAGE OVER COMPETITOR LIKE FRANCE, I'MTALKING ABOUT LIFE SCIENCES AND EVEN IN AREAS OF FINTECH.BUT THOSE BUSINESSES WILL SAY IS , YOU HAVE TO BE IN A MORESTABLE PLACE, THAT HAS TO BE THE HEART OF YOUR PITCH,WHETHER THAT'S YOUR FISCAL.

RULES ARE YOUR COMMITMENT TOTHE PROCESSES WE DIDN'T SEE WITH THE U.K.HAD THAT GOVERNMENT UNDER LIZ TRUSS.THEY WANT CONFIDENCE THAT THE PLANTS THE GOVERNMENT HAS ARENOT GOING TO CHANGE DAY TODAY. PETROL AND DIESEL ENGINE FORNEW BUILD VEHICLES IN THE U.K. THEY WANT TO SET OF ACTIONSWHERE THEY ARE SPOOKED BY THE GOVERNMENT'S AROUND INSTABILITYAT THE HEART OF EACH ONE OF THE PLANS. IT'S NOT UNREASONABLE.QUAKES THEY WANT STABILITY, LET ME ASK YOU ABOUT CHINA AND YOURPOSITION COMPARED TO THE EU –.

U.S. AND EU, THE LEVEL OFPROTECTIONISM BECAUSE IT'S A CHOICE ON EV'S BETWEENPROTECTIONISM AND GIVING POOR BRITS THE ACCESS TO THOSEELECTRIC VEHICLES. >> IT IS ONE OF THE BUSINESSTRADE QUESTIONS FACING A COUNTRY LIKE THE U.K..I ALWAYS WANT A CAVEAT BY SAYING EVEN IN THE U.S.WHERE YOU HAVE US CONSERVATIVE SET OF TRADE MEASURES, YOU SEEBILATERAL TRADE AT RECORD LEVELS.IT'S A MORE COMPLEX PICTURE THAN DESCRIBED IN CERTAIN PARTSOF THE MEDIA.

I AM CONCERNED ABOUT ANREASONABLY UNFAIR COMPETITION IN CHINA WHEN IT COMES TOTHINGS LIKE EV'S. I WANT TO SEE COOPERATION WITHCHINA WHERE WE CAN DO THAT, BUT I HAVE TO TAKE A VIEW THAT MAKESURE INTERNATIONAL COMPETITION IN THE TRADING SYSTEM IS A FAIRONE, I AM WAITING TO SEE HOW THE CURRENT GOVERNMENT MAYREACT TO WHAT WE SEE IN TERMS OF WHAT THE EU MIGHT DO.I ALSO RECOGNIZE WITH THE EU AND U.S.WILL DO IT HAS AN IMPACT OF TRADE DIVERSION WHEN IT COMESFROM THE U.K.

I'M VERY WORRIED ABOUTCOMPETITION, BUT I WANT TO MAKE THAT AND ACTIVATE THAT IN A WAYTHAT TRIES TO MAKE THAT TRADING RELATIONSHIP ONE WHERE WE CANDO THAT, BUT IT HAS TO BE FAIR COMPETITION. >> U.K.SHADOW SECRETARY OF STATE FOR BUSINESS AND TRADE.WE WILL LET YOU GET BACK TO THE CAMPAIGN TRAIL.THANK YOU FOR MAKING TIME FOR US THIS MORNING.THE FRENCH PRESIDENT RENEWS CALLS TO BUY EUROPEAN.MORE ON EMMANUEL MACRON'S VISIT.

TO GERMANY, COMING UP.THIS IS BLOOMBERG. ♪ >> THIS IS MARKETS TODAY, 43MINUTES INTO THE EUROPEAN TRADING DAY.SEEING A LITTLE MORE OF A SESSION WHEN YOU LOOK AT THESTOXX 600, CATCH OF TRADE COMING BACK FROM A LONGWEEKEND, BUT ALSO PERHAPS LOOKING FOR MACRO DATA IN THEWEEK, WE ARE GETTING LINES COMING FROM THE FED'S KASHKARI.HE'S NOT A VOTING MEMBER AT THE MOMENT.NOT REALLY DEVIATING FROM HIS MESSAGE.HE'S KNOWN AS A HAWK FROM THE.

FOMC COMMITTEE OR WHEN HE WAS AVOTING MEMBER. THEY ARE IN A GOOD POSITION OFTHE STRONG LABOR MARKET ULTIMATELY SAYING THERE IS NONEED TO RUSH AND CUT RATES AND THEY NEED TO GET MORECONFIDENCE IF THE PRICE TO THIS IS WHAT YOU HEAR FROM FOLKS ATTHE FOMC TALKING ABOUT. THIS IDEA THAT MAYBE WE DON'TNEED TO CUT RATES, MAYBE EVEN HIKING GETTING BACK ONTO THENARRATIVE. TOM: THEY ARE RELATIVELY HAWKISHGIVEN THAT SOME ARE WEREN'T ROLLING OUT.WE HAVE THE PCE INDEX ON FRIDAY.

CURRENTLY ACROSS THE TWO-YEARIN THE TWO-YEAR 492, JUST DOWN, CLOSER TO BASIS POINTS.TENURE AT 445, CURRENTLY DOWN ONE BASIS POINT IS THE MOVE.FOR 45 ON THE 10 YEAR, 492 ON THE TWO.CLERKS ARE SET I LOVE YOU ON AIR. KRITI: I'LL TAKE IT. TOM: NOW WE'VE HAD IT CAN –OFFICIALLY CONFIRMED. >> I DO MEAN THAT, I KNOW YOULOVE TO QUOTE HER. BUT I JUST THOUGHT ABOUT THATLABOR MARKET THAT KASHKARI IS MAKING.ANNA WONG ASKING WHETHER THE.

FED IS SO DOVISH, SO KEEN TOCUT RATES THAT ARE TOO QUICK TO CONCLUDE THAT WHEN IMMIGRATIONINCREASES, IT'S DISINFLATIONARY AND PUTS ALL THE EVIDENCE ASIDE.SO TYING INTO THAT LABOR MARKET. TOM: THAT'S INTERESTING FROM THETEAM AT BLOOMBERG ECONOMICS. THERE IS THIS BIASED TO CUTTINGIS THE VIEW FROM BLOOMBERG ECONOMICS. THEY THINK THE MOVES AROUNDIMMIGRATION, PRODUCTIVITY WILL BE POSITIVE IN TERMS OFTRAJECTORY INFLATION, BUT THEY ARE MORE LIKELY TO GO FOR A CUTIF THEY SEE TROUBLE IN THE U.S.

ECONOMY.THIS IS SOMETHING THAT MARK CUDMORE FROM THE MLIV TEAMSAID, MAY BE THE FOCUS WILL BE ON SERVICES AND HOW IT HAS BEENRELATIVELY STICKY, BUT PART OF THAT DOWN TO WHAT WE SEE INTERMS OF INDUSTRIAL GOODS AND PRICES AROUND THE INPUT PRICESOF THOSE METALS. ALSO, MAYBE THE SHIPPINGINDUSTRY. GLOBAL GOODS SHOWING SIGNS OFACCELERATING AFTER LAST YEAR SLUMP, THAT'S GIVING SOMESUPPLY CHAIN MANAGERS FLASHBACKS OF THE DEMAND SPIKETHAT DISRUPTED INTERNATIONAL.

COMMERCE THREE YEARS AGO.LET'S GET MORE FROM BLOOMBERG TRADES ARE.WHAT HAS CAUSED THIS LATEST SPIKE IN TERMS OF SHIPPINGRIGHTS, HOW WORRIED SHOULD WE BE? >> CENTRAL BANKERS ARE LOOKINGFOR A PLACE WHERE IT WILL EASE AND THEY WON'T FIND IT IN THEGLOBAL TRADING SYSTEM RIGHT NOW. AT THE MOMENT, THE SHIPPINGINDUSTRY WILL GET FROM BOTH THE DEMAND SIDE AND THE SUPPLY SIDE.SUPPLY SIDE BEING THE ATTACKS IN THE RED SEA, CONSTRICTINGTHE AMOUNT OF CAPACITY THAT.

SHIPS HAVE TO CARRY CARGO.THEY HAVE TO GO THE LONG WAY AROUND AFRICA, THAT CUTS THECAPACITY BY 20%. YOU ADD TO THIS THE UPCOMINGPEAK SEASON FOR SHIPPING WHEN RETAILERS AND OTHERS RESTOCKTHEIR SHELVES OR MAKE SURE THEY HAVE ENOUGH INVENTORY ON HAND,HOW DO YOU GET INTO THIS HOLIDAY SEASON AND YOU HAVE ASUPPLY AND DEMAND SEASON THAT'S PUSHING SHIPPING RATES UP AT ARATE WE HAVEN'T SEEN SINCE THE BIG CRUNCH DURING THE PANDEMIC.KRITI: HOW LONG DOES IT LAST? I'M THINKING IT'S BACK TOSCHOOL SEASON IN THE STATES,.

THAT REQUIRES BIG FRONTLOADINGOVER THE SUMMER IN TERMS OF SHIPPING GOODS TO THOSERETAILERS, GIVE US A TIMELINE. >> AT THE MOMENT IT LOOKS LIKEIT'S FEEDING ON ITSELF, THE DRIVE UP AND SHIPPING RATES ISENCOURAGING MORE DEMAND SO YOU ARE NOT CAUGHT SHORT IN ACOUPLE OF MONTHS. BUT THE LONGER TERM PICTURESTHAT THERE'S A LOT OF SHIPPING CAPACITY COMING ONLINE OVER THENEXT 6-12 MONTHS, THAT THE BIG CARRIERS PARTNERSHIPS WITH ABIG WINDFALL PROFITS THEY MADE DURING THE PAN DATA — DURINGTHE PANDEMIC AND THOSE WILL.

COME BACK ONLINE AND MOSTANALYSTS WILL SAY THAT WILL PUT DOWNWARD PRESSURE ON SHIPPINGRATES. >> HOW DO YOU MODEL THE IMPACTOF INFLATION IF AFTER EVERY SUPPLY SQUEEZE YOU GET THESEADJUSTMENTS AND EXPANSION OF CAPACITY? >> THERE IS A BIG DEBATE DURINGTHE PANDEMIC ABOUT WHAT THE PERCENTAGE AS A SHARE OFOVERALL INFLATION AND MOST ECONOMISTS WOULD SAY IT'SPRETTY MINIMAL. YOU CAN PUT A LOT OF TV'S IN ACONTAINER IN THE PER UNIT COST.

IS PRETTY LOW.THERE SHOULDN'T BE A HUGE INFLATIONARY IMPACT, BUT THEREWON'T BE MUCH OF A DEFLATIONARY IMPACT EITHER. TOM:REALLY INTERESTING DEEP DIVE AND WHAT IT MEANS FORPOTENTIALLY A SLIGHT PICKUP IN INFLATION, HIGHER PRICES AS WELOOK AT THAT SQUEEZE IN TO WHAT EXTENT THAT COULD BE ABATED INTHE WEEKS AND MONTHS AHEAD. IF VERY MUCH. NOW LET'S GET A CROSS OVER TOGERMANY WHERE FRENCH PRESIDENT EMMANUEL MACRON SAID THE EUMUST STOP BEING NAIVE IN THE.

FACE OF GROWING COMPETITIONFROM CHINA BUT ALSO THE U.S.. DURING A VISIT TO GERMANY HEREPEATED CALLS FOR A BUY EUROPEAN STRATEGY IN KEYSECTORS LIKE DEFENSE. IT'S LEFT THE PLAYBOOK OF JOEBIDEN. LET'S BRING IN OLIVER CROOK.TO WHAT EXTENT ARE THEY ON THE SAME PAGE ON SOME OF THESEISSUES? OLIVER: IT'S THE FIRST STATE VISIT IN24 YEARS AND THEY WANT TO MAKE A SHOW OF THE FACT THAT THEYARE GETTING ALONG, WHICH WE KNOW IT AS AN IN DISPUTE.THIS IS BEEN A TENSE.

RELATIONSHIP FOR THE PASTCOUPLE OF YEARS. THEY HAVE COME OUT WITH A OP-EDIN THE FINANCIAL TIMES REALLY OUTLINE WHAT THE PRE-ELECTIONPITCH FOR THE NEXT PARLIAMENTARY PART IN THE EUPARLIAMENT IS REALLY SAYING, WE NEED TO BUY EUROPEAN AND WECANNOT RELY ON THE THINGS WE'VE RELIED ON IN THE PAST. THEIRAMBITIONS ARE GREAT. THEY WANT TO STILLDECARBONIZING GET FORWARD ON DEFENSE BUT ALSO ON AI ANDQUANTUM COMPUTING. THE QUESTION IS, WHAT IS THEFORMULA TO HOW WE DO THIS.

THEY ALSO NEED TO ATTRACT HUGEVOLUMES OF INVESTMENTS. THAT IS WHERE THE CAPITALMARKETS UNION COMES IN. THAT'S WITH THE TWO WILL BEDISCUSSING TODAY. CAPITAL MARKETS UNION AND MANYPOLITICIANS STARTED THE SILVER BULLET TO SOLVE PROBLEMS TOATTRACT HUGE VOLUMES OF INVESTMENTS THAT UNLEASHAMERICAN-STYLE CAPITAL MARKETS AND HAS AN ADDED ADVANTAGE OFNOT HAVING THE THORN IN CONVERSATION AROUND JOINT DEBT.IT SORT OF FREE. THE DISADVANTAGE OF THE CAPITALMARKETS UNION IS IT IS.

INTENSELY BORING AS A TOPIC, ITIS ALSO CONVOLUTED. WHERE YOU DON’'T PAY FOR ANDEUROS, YOU PAY FOR AND POLITICAL WILLS, WHICH IS WHYTHERE HAS BEEN NO MEANINGFUL PROGRESS IN THE LAST 10 YEARSAND THAT THIS IS JUST BEEN CIRCULATING AS AN IDEA. KRITI: IN ADDITION TO THECONVERSATION, VOLODYMYR ZELENSKYY IS IN WESTERN EUROPE.THEY HAD TERMINAL WITH SECURITY ARRANGEMENTS WITH BELGIUM.WHAT ELSE IS HE HOPING TO LEAVE WITH?QUICK SEASON BELGIUM AND IS.

EXPECTED TO GO TO PORTUGAL NEXT.HE WAS IN SPAIN BEFORE THAT. HE LEFT SPAIN WITH A BILLIONEUROS WORTH OF COMMITMENTS AND MILITARY HARDWARE.THEY SAID THEY WOULD GIVE THEM PATRIOT MISSILES AS WELL ASAMMUNITION AND KEY AT 19 LEOPARD TANKS.ALL OF THIS STUFF WILL BE DELIVERED BY THE END OF JUNE,WHICH IS A PRETTY QUICK TURNAROUND.THIS IS SUPER RELEVANT RIGHT NOW BECAUSE YOU HAVE ANOTHERPROBLEM. BILATERAL AGREEMENTS BETWEENUKRAINE AND EUROPEAN NATIONS.

ARE IMPORTANT BECAUSE HUNGARYIS BLOCKING 6.5 BILLION EURO FUND THAT THEY HAVE SET UP.THEY ARE BLOCKING IT SO IT BECOMES IMPORTANT TO GET THOSEINDIVIDUAL DISBURSEMENTS AND THAT'S WITH ZELENSKY IS HOPINGTO GET PEERED OVER THE WEEKEND WE TALKED ABOUT THE G7 AND HOWTHEY ARE TRY TO GET THE FINANCING FOR UKRAINE ON FIRMFUNDING FOR THE YEARS TO COME WITH THOSE FROZEN RUSSIANASSETS IN PART TO TRUMP PROOF THESE PAYMENTS UKRAINE.IT LOOKS LIKE EUROPE NEEDS TO OR BOMBPROOF THEM AS WELL.

>> OLIVER CROOK, WE THANK YOUFOR YOUR COVERAGE AT THAT G7 MEETING OVER THE WEEKEND.LET'S LOOK AT THE OTHER EVENTS WE ARE FOLLOWING.DAY THREE OF PRESIDENT'S VISIT TO GERMANY HEALING THERELATIONSHIP WITH OLAF SCHOLZ THERE. 3:00 P.M. LONDON TIME WE HAVE U.S.CONSUMER CONFIDENCE EXPECTED TO DETERIORATE IN MAY.REFLECTING PESSIMISM ABOUT JOBS, INCOME AND FUTUREBUSINESS. THIS IS THE LABOR MARKET COOLSAND PRICES STAY ELEVATED.

4:30 P.M.LONDON TIME WE HAVE THE TWO-YEAR TREASURY AUCTION AT6:00 P.M. THE 55-YEAR TREASURY AUCTION.STARTING TODAY, IT IS T PLUS ONE. LOTS OF PLUMBING ISSUES,POTENTIALLY, AS U.S. EQUITIES CHANGE THE TIMING OFHOW LONG THEY HAVE TO SET UP. WE HAVE A LOT OF CENTRAL BANKSSPEAKS LESS THAN LAST WEEK. FROM THE BANK OF ENGLAND'SCATHERINE AND DISCUSSING THE FED'S KASHKARI. KRITI: I COULD NOT HELP YOU WITH THEREST. THIS IS A REALLY.

IMPORTANT STORY, T PLUS MONTHSETTLEMENT, I LOOKED AT BLOOMBERG REPORTING AND THEYCOMPARED IT TO THE 1920'S. THE ROARING 20'S WHEN THESETTLEMENT WAS FIVE DAYS. IF ANYONE HAS READ REMINISCENCEOF A STOCK TRADER. I'M GETTING REALLY NERDY. TOM: I WENT BACK TO THE 1920'S ANDTHERE WERE SO MUCH ACTIVITY. KRITI: IT'S BECAUSE YOUR BIGINSTITUTIONAL INVESTORS OF THE DAY WERE GETTING WASHED OUT BYRETAIL INVESTORS. BUCKET TRADERS.A SIMILAR STORY THAT PROMPTED.

THIS IN 2020 ONE WITH MEMESTOCK FRIENDLY WHICH IS REARING ITS HEAD. GAMESTOP, RK DEAL.THIS IS REALLY INTERESTING TO ME BECAUSE THIS FEELS LIKE ANO-BRAINER. WHY NOT MAKE THE MARKETS ALITTLE BIT MORE EFFICIENT. LOOK AT THE WAY THE BANKS AREPREPPING. $3 BILLION QUESTION. CITIGROUP TALKING ABOUT MOVINGSTAFF TO KUALA LUMPUR. THERE IS SOME CONCERNS ABOUTPLUMBING. >> THE SEC SAYING THETRANSITION MAY LEAD TO SETTLEMENT FAILS ANDTRANSITIONS TO A SMALL SEGMENT.

YOU HAVE TO WONDER IF THEY HADTIME TO PREPARE OR RELOCATE THE STAFF.THE QUESTION BEING, IS EVERYONE EQUALLY READY TO KEEP UP. TOM:INVESTORS NEED THE DOLLARS TO CLEAR THESE TRADES IN THAT TIME.SO MAY BE FOREIGN INVESTORS ARE MOST AT RISK IN TERMS OF ANYIMPACT. BUT YES, THE SEC HAS BEENRELATIVELY RELAXED. MANY MARKET SAY THIS COULDCAUSE TENSIONS WITHIN THE SYSTEM, SO WE HAVE TO SEE HOWIT UNFOLDS. KRITI: IF YOU LOOK AT POSITIONING INTHE FX MARKET, EVERYONE IS LONG.

DOLLAR.THE CONCERN THAT THE FX MARKET WORKS AT T PLUS TO DELAY MAYNOT BE AS RELEVANT. PEOPLE HAVE BEEN PREPARING FORTHIS, BUT IT'S CURIOUS TO SEE HOW MUCH IT WILL AFFECT THE FXSTORY. THIS IS A U.S. SETTLEMENT STORY WHEN IT COMESTO THE U.K.. INTERNATIONAL INVESTORS WHOWANT TO GET INTO THE U.K. MARKETS ARE LOOKING TO STAY NOLATER THAN 2027, WHICH FEELS LIKE A LIFETIME. TOM:WE TAKE OUR TIME OVER HERE. IT'S A BIT OF A NONCLASS MARKETDAY. LEADING INTO THE OPEN THIS.

TUESDAY.BUT ACROSS THE BENCHMARK YOU ARE FLAT AND DOWN ON THE FTSE100. STARTED IN THE GREEN. YOU ARE DOWN IN THE CAT CO.IN FRANCE DOWN 2/10 OF PERCENT. OVER IN SPAIN, THE IBEX JUSTADDING 13 POINTS. U.S. FUTURES POINTING UP. KRITI: SPAIN IS DENYING ITS PLAN TOSCRAP THE ENERGY. THAT IS SOMETHING JOE EASTONMENTIONED AND I WAS DRIVING UP HIGHER.YOU SEE A LITTLE GAINS ON THE IBEX PAIRED OFF OF THOSE.WE WILL KEEP YOU AWARE OF THOSE.

COMMENTS.THE EFFECT STORY IS FASCINATING AS WE TALK ABOUT ELECTIONS ANDFACTORING IN THE U.K. AND EU. IT'S ELECTIONS UNTIL THEN.ALL EYES ON SOUTH AFRICA GOING INTO TOMORROW.WE DIDN'T EVEN MENTION THE ANGLE OF THE DEAL, WE WILLBRING YOU TO LIVE ON BLOOMBERG TV.

Sharing is caring!