Xi and Putin Save Joint Briefing, Assassination Try in Slovakia | Atomize of day: Europe 05/16/2024

Good morning.This is Bloomberg Daybreak Europe. I'm Tom Mackenzie in London.These are the stories that set your agenda.Global stocks rally with the s&p 500 hitting a new record high as cooler USinflation reinforces bets on fed rate cuts.Slovakia's prime minister in hospital after an attempted assassination inbroad daylight. The shooting of Robert Fisk brutallyexposing the widening political divide in the EU nation.Plus, Russian leader Vladimir Putin is given the red carpet treatment inBeijing as he looks to Chinese President.

Xi Jinping for backing in his waragainst Ukraine. Let's check in on some of the earningstories right now as we keep an eye, of course, on the geopolitics.Siemens and the redhead coming through as we dig through the numbers, butconfirming that they will be selling part of that business, one of theirportfolio companies to the private capital group, APAC.This is Informatics, which is a maker of engine drives on the second quarter.In terms of the profit coming through for the industrial business, that is amiss for Siemens in the second quarter. That is also a redhead.Of course, you're playing by terminal.

€2.51 billion.The estimates had been for €2.76 billion.So it's a miss when it comes to the second quarter industrial businessprofit in terms of orders coming in below the estimates as well.In the second quarter, €20.45 billion of orders.The estimates had been north of 21 billion.In terms of the full year, they still see full year revenues up 4 to 8%.The estimates had been for around 4.61%. So a range of between four and 8% interms of full year revenue is what's being forecast by Siemens.Again, they will be selling their.

Animatics in a Multics business and unittapes for around three and a half billion euros.And in terms of the net income, that was a beat on net income, €2.2 billion, theestimates have been for a little under 1.7 billion.So net income it is a beat, but on orders it's a mess.And then on the industrials profits, that was also a mess for Siemens.We are going to be bringing an interview with the CEO of Siemens running Bush, ofcourse, later in the show. That's at 6:45 a.m.UK time staying in Germany. Let's bring you the numbers comingthrough from Deutsche Telekom, of.

Course, the majority owner, of course,of T-Mobile in the US. So the US business in focus for us todayand the German business as well. And when it comes to Deutsche Telekom,it is a beat on the earnings estimates and it is the German mobile growth thatseems to be behind that in terms of first quarter earnings, adjustedearnings out of the German area coming in up three and a half percent at 2.2shy, €2.6 billion. They still see full year post lease,about 18.9 billion in terms of earnings adjusted earnings per share, EPS around€1.75 per share full year in terms of the first quarter revenues comingthrough for Deutsche Telekom, 27, just.

Shy of €28 billion.The estimates had been essentially in line with that.So they are meeting estimates in terms of the first quarter revenue.Let's check in on these markets. It is where it's gone on the back ofslightly softer inflation data and the CPI from out of the US and alsoweakening retail sales as well. Dollar down yields down equities bid.European stocks looking to add just shy 2/10 of a percent.The FTSE 100 looking at 26 points, pointing higher by 3/10 of a percent.Commodities getting a lift as well. We keep an eye on the copper story andof course what's happening with iron ore.

And the linkages to the real estatesector of China. S&P futures pointing to gains of arounda 10th of a percent after busting through fresh records yesterday above5300 and looking to build on today, the Nasdaq looking for gains of 29 pointsand tech got a significant lift the likes of in video and the semiconductormakers in the US as well. That's the broad cross set.Have a look at what's happening in the yields.Of course, the US benchmark ten year yields fell about ten basis points onthe back of that data out of the US yesterday.In terms of inflation for 32, right now.

It's down a further two basis points.The Bloomberg dollar index plummeted yesterday, currently down around 2/10 ofa percent, giving a lift, of course to Asian affects as well.Copper at 10,364, a further gain of 1.4%.The short squeeze story still unfolding in the US iron ore rallying today,almost 3% on expectations that maybe there'll be some resolution in terms ofreal estate crisis in China, up 2.6%. We watched the the markets then in termsof the real estate, in terms of the miners in the UK.Let's get more now in terms of the Asian session bring in April Hong standing byin Singapore April.

Yeah.Tom, we are seeing quite the party in the Asia-Pacific.It is against the backdrop of that US CPI print the star gauge for the regionclimbing to the highest in more than two years.And on the region's benchmarks, they're getting fuel from the gains in techstocks. Australia's benchmark is outperforming.If you're wondering why, because we got a jobless rate surge now and that'sfuelling expectations of RBA rate cuts. The Hang Seng getting that lift from thetech stocks as well as Chinese lenders. Let's flip the board and dig a bitdeeper into the sectors that we are.

Watching very closely.In the Asia-Pacific. Hang Seng tech lifted by Tencent afterits earnings beat dragged by Alibaba after that.Ms.. But we also keeping an eye on them and Ido that report later today. But the Chinese developers, as youalluded to, really in focus today, we're seeing a gauge of them in Hong Kongjumping to the highest level since December last year after Bloombergreports that China is mulling a plan that could get local governments to buyunsold homes from distressed developers. And this could help to address some ofthe issues related to excess inventory.

As well as liquidity.So we're seeing that gauge really jumping today.But you can see the outliers that we're also focusing on the Japanese lendersand the automakers for different reasons.The Japanese automakers are down because of that strength in the yen.To date the banks is because of the expectations of the BOJ, a rate hikegetting temper. Remember, that could be a profitabilityissue if we don't get those BOJ rate hikes.That's what the board has to look at. Why?Because we got the Japanese GDP in.

Deeper contraction than expected.And this is because consumers, companies, they cut back on spending.Our economists have flagged that this might be a temporary factor as wellbecause we've got that major automaker that cut back on output, no thanks tosafety scandals, but that is still part of what markets are digesting.We're seeing the Japanese currency still climbing today below the 154 level.It's really about those low US yields, Tom.Okay, Abraham. Checking in on the Asian market,reaction to the inflation data and stories coming out of Japan and China aswell.

April, thank you very much indeed.On the details around the inflation story and of course, how it's impactingacross asset. A measure, of course, of underlying USinflation cooling in April for the first time in six months.With markets now pricing in two rate reductions by the Fed this year, the USBureau of Labor Statistics, meanwhile, conducting a probe after inadvertentlyposted the data 30 minutes early. Oops.For more, let's bring in Bloomberg's massive stretch as Mark Cranfield.Mark. Here we go then off to the races.This is risk on.

How much further does this rally have torun then? Well, if you think we were having aparty in Asia today, you're probably in for an even bigger one in Europe,because the this was the missing piece for the European Central Bank and theBank of England. If they had any doubt at all that theycould start their easing program. The Fed effectively as well.The CPI data has just given them the green light because they can be muchmore confident that the Federal Reserve will do something this year.And so now I think we can fully expect that we get rate cuts in Europe and theU.K.

Pretty soon, probably next month, andthat will just keep this bond market rally going.And don't forget, there's been a huge back up because where we were right atthe beginning of the year, there was euphoria about bond markets around theworld. We had to backtrack considerably becauseof the inflation prints in March and April.And now we're only just starting to resume that rally.So there is a long way to go on the global bond rally, particularly in theG10 space exclusion, of course, of Japan, Europe and the UK.Right at the forefront of that, you're.

Probably going to see a lot more.You're going to get tired of hearing the word Goldilocks by the end of the day.But that's what you have. You have a situation where yields arecoming down, the dollar is coming down and equity markets are loving it.So you're going to have your own party today, just like we had in Asia.Well, we're looking forward to it, Mark. And in fact, some of the producerssuggested they might send some party invites in the post out to you becausethey're keen to get their party hats on with Mark Cranfield.Thank you very much indeed for setting us up for what looks like a Goldilocksday, of course.

And I stress is Mark Cranfield with thedetails around the inflation print and the read across to these markets.The geopolitics now with Vladimir Putin has arrived in Beijing for talks withPresident Xi. As you can see, they rolled out the redcarpet in quite some fashion. Russian forces, of course, pressingahead. Meanwhile, with a new offensive inUkraine, China's leader welcomed his Russian counterpart as it began a twoday state visit. Let's bring in Bloomberg's RebeccaWilkins for the implications, the importance of this.Rebecca, what do we know about the visit.

So far?How important is this for Putin? Finally warm welcome for PresidentVladimir Putin into the great Hall of the people for those talks with XiJinping. So directly with Xi, but also so goodsort of small groups as well, according to state media.Now, Xi Jinping has come up with sort of quite a full throated support for Putin,reaffirming and saying that, you know, he's China's ready to work with Russiaas a good neighbor, friend and partner, and again, stressing that they, likethey can consolidate their friendship for generations to come.So very much sort of affirming the no.

Limits nature of the friendship thatcame. You know, that announcement came justweeks before Putin invaded Russia. But, I mean, I think there's still thissort of somewhat unspoken tension. There are certain strains going onbehind the scenes, not least these continued threats of US reprisals forwhat they perceive to be a Chinese support of Russia's war industrialmachine. Okay.Rebecca. CHEERING Wilkins, Thank you very muchindeed. Monitoring this important visit, ofcourse, by Vladimir Putin to Beijing, a.

Two day state visit.Now it is the final day of the Qatar Economic Forum, powered, of course, byBloomberg Horizon's Middle East and Africa anchor Jomana.But she is there on the ground for us, Been interviewing a number of key CEOs,of course, be involved, a number of panels at QE.F Jomana, what stood out to you from this event?What are some of the kind of key takeaways that you gleaned?Yeah. TOM Well, I mean, there have been somany different types of conversations going on here.I would say geopolitics, of course, has.

Dominated this year for obvious reasons.Yesterday, Bloomberg editor in chief John Micklethwait had a conversationwith General Petraeus. And one of the things that stood outfrom that conversation is that in his view, there needs to be a plan forpost-war Gaza. And he doesn't think that the Israeligovernment have gone far enough in thinking about what happens next.So that was the comment that stood out just from a geopolitical perspective.But of course, we are here talking about the opportunities of the region.We've had a lot of conversations about the economies of the JCC, their push fordiversification.

And example, yesterday I had a panelwith some of the tourism ministers from the region, Saudi tourism minister.Right now, four and a half percent of their GDP comes from tourism.They aim to get it to 10% by 2030. What are the steps in place that they'retrying to do to get to that number? The CEO of Accor, you had yesterday onyour own show, he was saying this is the region to be because of that tourismdrive and because of the number of people that are coming to the region, tolots of other panels. Tom, about the business of sports,that's always interesting to people from the region, outside the region and whatthe region is doing to attract some of.

Those mega sporting events.And then today is actually going to be a day that's a lot more tech focused.So we're going to be having conversations about air to air hubslooking to be set up here. I'm going to be having a one on one withthe Ministry of Communications over here in Qatar about some of the opportunitiesthey're looking at. Of course, a big theme for UAE as well.In addition to all that, we see funds, private equity funds coming out here,seeing what the opportunities are and whether or not their their investmentslandscape can actually lend itself to a portfolio of portfolio buildingopportunity out here in the region, too.

So plenty of discussions.And I would say it's a combination of geopolitics, economics and as ever, dealmaking. Okay.Arises Middle East and Africa on a perception, of course, at the QatarEconomic Forum in Doha with a great wrap of some of the conversations comingthrough at that event. There's plenty more guests coming upfrom day three, by the way, of AEF in Doha, including exclusive interviewswith the Africa regional director of the UN Development Program and the CEO of eCommerce company, JAMAIL. Also today, Bloomberg will be at Jpmorgan's Global Markets Conference in.

Paris.We're going to be speaking to CEO Jamie Dimon, plus the lender's chief economistand the head of global commodities strategy.What a day to be talking commodities. There's plenty more coming up.This is Bloomberg. Welcome back to Bloomberg DaybreakEurope now. Slovakia's Prime Minister Robert Feetremains in a serious condition after an assassination attempt.The country's interior minister says the shooting was politically motivated.Let's get more on this story. We're playing by Sandra Dudek in Prague.Andrea, what more do we know then about.

The prime minister's condition at thispoint? At this point.We know that he may be out of life threatening condition and is recoveringafter surgery. What we are awaiting this morning isconfirmation from a wider group of his allies, his colleagues and the medicalstaff that his condition is indeed improving.What kind of this gave us an idea of what kind of politician fatso is.He has a long history, of course, in that country, Slovakia.What do we know about him as a politician?He has a long history in Slovakia and.

Also in Europe.He is one of the longest serving leaders in the EU itself.He's a very popular politician experience.Over the years, though, he has turned into a populist, a fierce critic ofEuropean values. In Slovakia, he has sort of become theanti voice of everything critical of vaccines, immigrants, LGBTQ community,liberal media, NGOs, and even supporting Ukraine by sending more weapons to thecountry. And in many aspects, the ideas andactions he has taken near the house of his ally and friend, Viktor Orban, theprime minister of Hungary.

And so this is a this is a deeplydivided country, a polarized country is the way that some have characterized it.Talk to us about some of those divisions and how the country's changed under hisleadership. The biggest change seems to have takenplace when he came to power for the first time last year.His stance on not being willing to help Ukraine by sending military aid hasreally split the nation and supported the pro-Russian moods in the country.He has also cracked down on state media and other media outlets.He has really escalated the standoff with the opposition and the outgoingpresident.

All of these things have reallypolarized the nation. It's a divided House.And and the shooting that happened yesterday is an indication of thedivisions of the moves that have taken over the country.Okay. Bloomberg's Andrea Dudek joining us withthe latest, of course, on that attempted assassination of the prime minister ofSlovakia. Andrea, thank you very much indeed.Now to the Netherlands, where election when a glut of elders has sealed atentative deal to form a right wing coalition after months of talks.According to the agreement, the.

Coalition intends to cancel a 15% tax onshare buybacks and limit the inflow of asylum seekers.Though this far right Freedom Party comfortably captured the most seats inthe election almost six months ago, but the controversial politician hasstruggled to assemble an administration. Coming up, Roaring Kitty goes quiet.The main stock rally fizzles with GameStop shares taking a tumble.That story is next. This is Bloomberg. Welcome back to Bloomberg DaybreakEurope. Happy Thursday.Now the main stock rally has faltered.

With a chunk of the game, stoking AMCEntertainment's $11 billion gains wiped out yesterday.The stock's more than doubled after the return of social media posts by KeithGill, better known, of course, as Roaring Kitty.Let's get more then with Bloomberg's Charlie Wells.He's been across this story for us. Charlie, so we'll take it step back.This has been the week of the meme stock, once again, a revival of thosekind of 2021 heady days of retail investor enthusiasm for some of theseheavily shorted stocks. What drove the rally and what kind ofled to the pop the mini pop that we saw.

Yesterday?Yes, I mean, Monday morning, I think everyone was ready for this kind of memestock mania to kind of potentially grip markets for weeks.And I mean, it really started with that cryptic tweet, that roaring kitty KeithGill sent out, which was basically a picture of a man kind of sitting on achair and looking like he was leaning forward.And so traders have kind of interpreted this to mean, you know, that maybe hewas back, that maybe he was going to play a big role in GameStop.And of course, we saw GameStop surge, we saw AMC surge.But this was, I would say at least so.

Far, kind of like a Rice Krispie rallywhere we basically saw a kind of snap and then a little bit of a crack andthen kind of a pop where we're seeing the shares kind of dip down.And so I think, you know, you could explain this by, you know, it's bullishsentiment. We've seen, you know, the S&P up over10% this year. So maybe this is traders wanting to kindof get in. You know, there was the tweet, ofcourse, but as well, you know, Wall Street has kind of wised up to WallStreet bets. And so, you know, they've been seeingsome options activity on some of these.

Shares pick up.They know when to get in. But I think importantly, they know whento get out. And I think they know that, you know,short squeezes or something that Wall Street bats likes and they've beenlimiting their exposure to that sort of is that is the Rice Krispie rally?Is that Charlie? Well, special.I just thought that up. Yeah.That's amazing. Breakfast time.Fantastic. We're going to run with that, Charlie.I love that.

Yeah.The way that Wall Street pros have kind of adjusted.This is really interesting, isn't it? Talk to us about the potential.What does it mean in terms of the consumer that the consumer read acrossfrom some of this meme stock activity? I mean, it's interesting, right, becausethese are retail favorites. Retail investors are consumers.And I think there's one story you could tell that, you know, the consumer isconfident enough here. You know, we've been seeing a lot ofstrong consumer sentiment across the economies.And maybe you could read into this that.

The consumer is not just spending.They're also speculating there. They know that GameStop and AMC arespeculative bets and they've got the spare cash to go in here.But, I mean, you know, there also is another world where this is more of aninstitutional play that Wall Street, as we've been talking about, has wised upto this. And there's some indication that insteadof what we saw in 2021, where a lot of retail dollars were buying in actuallyon some of these trading platforms, you saw retail selling.And so that could be an indication that some of these retail investors arethinking, all right, you know, I'm.

Actually down from peaks that we saw in2021. Prices have finally hit a place where Ican take some profits. So that could have been happening.It's a very different vibe in 2021. You've been across some of the socialmedia platforms, the likes of Reddit as well.Wall Street Bets. What is your sense when you go throughthose forums, when you speak to people engaging in this as to whether or notthey were done with this now or whether this could this could rise again?Yeah. So I've been down in the trenchestalking to a lot of these Redditors and.

The sentiment is different because backin 2021 there was this kind of us versus than this is a new world order type ofsituation. And instead some of the traders thatI've been talking to, they've got in, they've got out.They saw this as an opportunity to make some money and they're fine with it.And I think what this says about the future is that, you know, this rally, Imean, it could continue. It's looking like it won't, but thatthese sorts of spurts will be back because structurally social mediainvesting is something that is here to stay.You know, it won't create necessarily.

What we saw in 2021, but these burstsare likely to be around for the future. Okay.Really interesting in terms of how that has evolved.Charlie Wells, thank you very much on all things, of course, will weigh in,Kitty, and the implications of that, that's there.More stories making news this Thursday. Warren Buffett's Berkshire Hathaway hasunveiled a 6.7 billion stake in insurer Chubb, ending months of suspense overits mystery position in a financial firm.Regulators previously allowed the stake to remain concealed.Berkshire disclosed the holding in a.

Filing, reflecting its positions at theend of the first quarter. The conglomerate has been building thestake in Chubb since 2023. Shares in the insurer jumped in afterhours trading. Bloomberg analysis of other 13 filingsshow hedge funds continue to lean into focused tech companies.Institutional investors lifted exposure to in video with the AI Darling havingthe biggest increase by market value for a single stock in the three monthsending March that if. First.They also increased exposure to air leaders, Amazon matter and Microsoft.And Bloomberg has learned that Ken.

Griffin's Citadel Securities generated$2.3 billion of net trading revenue in the first three months of 2024, settingthe market making firm up for a potentially record year.The first quarter result was up 68% from the prior year.The results offer a rare glimpse into the privately held firm, which hassteadily expanded its market making capabilities, most recently in corporatebonds. There is plenty more coming up,particularly from the Qatar Economic Forum, including in conversation withRaj Ganguly, the co-founder and co-CEO of B Capital.That exclusive interview is next.

From Doha, this is Bloomberg. Good morning.This is Bloomberg Daybreak Europe. I'm Tom Mackenzie in London.These are the stories that set your agenda.Global stocks rally with the s&p 500 hitting a record high.As cooler US inflation reinforces bets on fed rate cuts.Slovakia's prime minister in hospital after an attempted assassination inbroad daylight. The shooting of Robert Fisk so brutallyexposing the widening political divide in the EU nation.Plus, Russian leader Vladimir Putin is.

Given the red carpet treatment inBeijing as he looks to Chinese President Xi Jinping for backing in his waragainst Ukraine. Let's check in on these markets then.A risk on fueled by the softness of the inflation data out of the US and theweakness around retail sales. European futures looking to build on thegains, then up 2/10 of a percent. Footsie 100 futures pointing higher by29 points. The S&P back above 5000 for the firsttime. Of course, that's a record.And looking to add to that by about a 10th of a percent.Nasdaq futures looking to gain 35 points.

After the tech led rally of yesterday,pointing higher by 2/10 of a percent. Let's flip the board and look acrossasset then. Ten year benchmark yields falling tenbasis points yesterday on the back of the CPI print.Currently at 431 on the ten year yields are down a further two basis points.The Bloomberg dollar index softness, of course, the dollar dropped on the backof that data. Currently down another 10th of apercent. Copper in focus for us still gaining1.4% so far on the session. Iron ore also getting a lift with thelinkages of course to the China story.

Currently at 117, up more than 3% rightnow. Let's get back to Hugh.If, though, the economic forum in Doha, of course, powered by BloombergBloomberg's Haslinda Amin is there for us with the guest house.Hey, Tom, we're talking about funding that funding winter that forced 35,000startups in India to go bust and we saw investment in Africa drop about 30%.Let's get insights perspective. Raj Ganguly, co-founder and co-CEO ofBeat Capital. Good to have you with us.Thanks for having me. This funding winter, is it ending?You know, I, I think the funding winter.

Is going to take at least another yearbefore it ends. But in many ways, it's a good thing.We need consolidation in the industry. There are too many start ups.There were probably too many venture funds and there's a flight and a move toquality right now, which I think over the long run is going to be good for theindustry. But one of the signs that make youupbeat that we're seeing probably close to the end of this funding, I thinkthere's a few signs. One is you're starting to see a littlebit of IPO activity. It's still early, but you're starting tosee a lot of corporate M&A activity.

A lot of corporates that have cash aregetting off the sidelines. They're interested in AI and they'restarting to be acquisitive with all of that cash that they have, and thatshould put liquidity back into the ecosystem and eventually get us pastthis funding winter and venture. Therein lies the problem.I not a day passes by when you don't talk about AI.Some are suggesting perhaps that AI winter is coming and perhaps year roundis also what we're looking at. I think it's it's hard to predict if ifyou know when this air bubble might burst.We're definitely in a bubble.

But I have to say that we at the capitalwhere we really believe that air is going to have a profound impact.Our partners at BCG are forecasting that 5 to 10% of IT corporate spend is movingtowards A.I.. That's rapidly moving up.Interest in this space is is really red hot.And you know, it it is still very early days in terms of adoption of thetechnology, but the valuations have gotten a little ahead of themselves.So too soon to talk about an AI winter, perhaps 25, 26.You know, is there a gauge? I'd love to say that we know when whenthat bubble burst, but the prices are.

Undoubtedly high.But some of these technologies are really transformative that we'restarting to see. We starting with really just theco-pilot technologies in terms of helping programmers code better andfaster. I think it really changes that wholedynamics of everyone looking for those ten next coders.Now hopefully you could take a1x or two x coder, a really good coder and makethem at ten x coder through A.I. technology.And that's, that's a huge impact. Roger Higher for one guy.Nobody expected rates to be this high.

For this long.How is it impacting the funding environment?I think you know there was a little bit of good news in the last 24 hours on theinflation side, what they said at the beginning of the year.I fully agree. And you know, fundamentally, I think inin venture we don't worry that much about where the rates are.We are focused on fundamental innovation.Technology is rapidly innovating. You look at the return of the biotechindustry, which in the last quarter it's really been researching.That's an industry which for three years.

Was really quiet, but there was afundamental innovation happening and you can invest to better prices.And we all know that some of the best venture capital investments duringhappen during these kind of funding winter times.In the end it is about valuations and we talk.But how the era of elevated valuation is over.What are you making valuations right now?Are they looking attractive? I think valuations are a lot moreattractive than they were two or three years ago.On the venture early stage venture side,.

I think there it's just continued to bea lot of activity. It tends to be a side that's fairly farfrom the capital market, so it's less impacted where you've really seen theimpact has been in the growth market, where valuations have come down anywherefrom 20 to 50% and some really great assets in companies that are profitableand that have been able to keep growing their revenue.So we continue to be an active investor and B capital across both the ventureand the growth stage globally. And of course, you raised $730 millionrecently for late stage startups. Why?I mean, you're looking at companies.

Already in your portfolio.Are you suggesting there's no other attractive studies out there and thatyou'd rather just focus on what you have already?I think it's a little bit of a mix. We will continue to back some of thebest companies in our portfolio. We think that those are companies thateven through the last two or three years where the markets have been slow, thatthey've just really continued to perform.But what makes them select investments in new companies, which we know reallywell, which are later stage companies that are frankly have struggled toattract capital in this current.

Environment.What's looking attractive and where can you find them?People talk about India, but India's had a a torrid time, you know, long term,still bullish on India. I think sector wise, as I mentioned,biotechs come back. I think cybersecurity in an uncertainworld continues to be an area that we look at fundamentally, I think in A.I.there is the AI infrastructure layer, which is very still early in itsdevelopment, but we're starting to see the AI application layer, and that'sreally exciting. And it's not just going to be the U.S.We think that countries like India will.

Be a big player in the air applicationlayer, both in terms of horizontal applications, but also in areas likefintech and supply chain. They're going to be really impacted byAI over the next few years. Let's pick up on India.We've seen some force come off the market.What is that suggesting to you? I think, you know, I think a lot ofpeople got very excited about some of the fundamental changes that arehappening in the Indian market. One of the most important ones is thatthere's just more ability for companies in India to IPO in India.But we have to see how that goes.

I think over the second half of thisyear, you'll see a few companies that do IPO in India.In the past you had to go to the US, you had to go to either the Nasdaq or theNew York Stock Exchange. If India can develop its own liquiditymarket. I think that will have a big impact onthe venture market in India. We're here in the Middle East.I'm just wondering what your thoughts are about the space here.I think the Middle East is, for us as a global venture capital investor, hasalways really been an interesting market.But over the last few years, you're.

Really seeing signs that the market isis reaching that tipping point. You're starting to see more companiescoming out in the air space, in the health care space, and especially inclimate technology. We think that the MENA region will be aleader in climate and energy transition technology, and that's an area thatwe're really interested in at big capital.You talked about how you're not too concerned about this higher rateenvironment. So what are the risks out there for you?I think that the biggest risk for us is to make sure that the best companies inour portfolio don't run out of funding.

I think we all learn from 28, 2010, 2024that even really great companies, if they don't manage their cash veryclosely, that sometimes growth and growth, you know, coming a little toofast can really be a drain on cash. That's our biggest focus, working withour companies, making sure that they are managing their cash flows, that they'regrowing at a reasonable rate and they're growing profitably.All right, Raj, thank you so much for that.Raj Ganguly, co-founder and CEO of Be Capital, of course.Tell him we're coming to you live, the Qatar Economic Forum.Well, a busy day ahead.

That's great stuff.Thank you very much indeed. Bloomberg's Haslinda Amin, of course,with Raj Ganguly, co-founder and co-CEO of B Capsule at the Qatar Economic Forumin Doha. Plenty more exclusive guests.So as Linda was saying, coming up on the third and final day of QE in Doha.Plus, Simmons sees factory orders drop as China weakness continues.We bring you a breakdown of the numbers and we're going to hear from a CEOrunning Bush. That is next.This is Bloomberg. Welcome back to Bloomberg DaybreakEurope.

Other stories making the top stories thetop news today. The owner of Britain's Royal Mail ispoised to accept a two and a half billion dollar pounds, three and a halfbillion pound non-binding bid from Czech billionaire Daniel Krasinski amidstruggles to modernize the beleaguered Postal Service parent companyInternational Distribution Services Idea says the board has indicated that itwould probably recommend an offer at the 370 pence per share.Proposed ideas have strongly rejected the previous offer.Italy is selling a €1.4 billion stake in oil giant any as the government looks toreduce its mammoth debt.

Prime Minister Julia Maloney'sadministration launched the placing through an accelerated book building.The government is working on a plan to sell around €20 billion in state heldstakes by 2026. And Deutsche Bank says a second sharebuyback this year is now less likely. The German lender had pledged to carryout another buyback just a day before it made a surprise announcement on €1.3billion in new legal provisions. The remarks to Deutsche its investorsare the starkest acknowledgment yet that parts of its payout plans have beenthrown into disarray. At one of the big earnings storiescoming through from Siemens,.

Disappointment, particularly when itcomes to the China part of its business, which seems still to be call ordersdropping revenue stagnating. Then in the fiscal second quarter,again, the factory automated demand out of China remains weak, continues to lagon Siemens. It kept its overall outlook for theunchanged, but it has lowered guidance for its key digital industries unit.We know that analysts were scrutinising that.It said that revenue within the digital industries unit could decline as much as8% this year, just running through some of the key lines that came through interms of earnings, second quarter.

Industrial business profit for Siemenscoming in below the estimates, €2.51 billion.The estimates had been for €2.76 billion.It was a mess as well in terms of the industrial business margin that came inat just 14%. The estimates had been for 15.2% andthey're setting a guidance in terms of full year comparative revenue of betweenfour and 8% in terms of the growth. Now, Bloomberg's Oliver Crook has beenspeaking, Siemens CEO running bullish about the company's performance and theeconomic outlook in China. Take a listen.Elements, which seems that it takes a.

Little bit longer to recover and let mego through them. Number one is the private consumption isnot picking up. Consumers are sitting on a record highsavings level of confidence missing, number one.Number two, the construction sector, which was really driving momentum, isreally going down now. This is by design.It was just overheated. Then we have a lower direct investmentsgoing into China. Reason is companies are also starting toincrease their resilience, investing in other areas.And this was just another element.

And so this this package, this alltogether is somehow still holding China back.China, they are issuing some measures, for example, subsidizing the replacementof white goods with an energy efficient one that will come.But again, it takes some time to go slowly.I may add another list to that list of the things that might be slowing Chinadown, which is that we've got the next couple of weeks.The EU is going to give the sort of outlook on what they're going to do forChinese EVs. Just this week, we got more tariffs fromthe Biden administration on many of the.

Products in the Chinese economy.Do you think that will delay the Chinese recovery substantially?Well, I mean this indeed f one point. The export is also not that strong forthe global economy is not pulling product so much it's used to be.Because China you know, China's an export market and the tariffs don'thelp. I mean, tariffs in principle they are asthey are, they are triggering then counter tariffs, which is not good ingeneral. This increases the price for consumers,which we don't believe is a good idea. At the same time, if it's if theargument is about overcapacity in the.

Automotive industry, for example, therealways has been overcapacity. So what's what's the level?Does it really impact too much? I didn't expect really that the Chinesemarket was really substantial flooding the American market, we see EVs.I don't believe that this is such a strong demand.The same for Europe.So therefore, I do not believe that this has huge impacts.But I mean, this tariff and counter-terrorist is maybe not what wewant to see in a market which is start to picking up in growth in China.Yeah.

And I'd like to get your kind of yourperspective on that question of overcapacity, because if you ask a lotof the European countries and politicians who want to see a greentransition, kind of what you need is overcapacity in certain things like,say, solar panels and these sorts of things.But what do you make of this argument that China is exporting all of thisovercapacity to the world? I mean, the argument goes back that theysay there's an over subsidizing of certain or other support, subsidizing ofcertain sectors which causes overcapacity, and they are offloading itto the market.

I don't believe that too much.I mean, take this solar industry, solar panels.I mean, most of them are coming anyhow from China.So it's maybe a good idea if you want to drive the energy transition that you getthrough panels from China in order to really drive the energy transition.That's what we want. We want to increase our photovoltaic.So therefore, I do believe this is a this is an argument which we have tolook a little bit deeper. We do not believe in increasing oftariffs. Free trade is good with and low cost ofgoods which are striving, in particular.

Our agendas.And one of them is reducing carbon footprint.So therefore, I hope that this is not the start of a tariff race.And then I went through it from China to Germany and, you know, the home markethere. Do you feel that sentiment is beginningto pick up in Germany? Do you see a recovery in the economy?Well, not yet. I mean, you saw the latest news on theGDP expectations. Germany on the lower end, the lot ofthings, structural things which we have to do.We have to work on our infrastructure.

Investment.We are still talking about our Sweden.So putting a brake on our on our depth in our capital, the government.So at the same time, we need to know the debt brake needs a reform in defense ofinvestors. You have to.Pardon me. Do you think the debt brake needsreform? We have we have to.Well, I do believe that selectively. It makes sense to do that.I'm pro a really a tight hand on budgets.We should really be tight on our money.

And again, there's a lot of inflow oftaxes. But the other side, we have kind of anunderinvestment, for example, in infrastructure over so many years.It's a under-invested distribution grid and transmission grid.So to catch up that at the same time put a brake on spendings is something werejust contradictory. So my point is we should have maybepicked up the point in saying we have to invest over, let's say, outdatedinfrastructure. This goes also into schools,universities, so the education system and the like and then start putting outa brake on it.

So there might be a selective selectiverelease would be a good idea. We need Germany to do some basichomeworks. Again, this is the infrastructure.It's education. But also others like we have to manageour immigration better. We need an inflow of immigrants.And this is the reason why we are voting now for openness, tolerance and respectfor people. I seem to see our own Bush, of course.Speaking to Bloomberg's Oliver Crook on the back of those earnings.There's plenty more coming up in a deep dive on that CPI data and where it'sleft positioning in terms of.

Expectations for the Fed.This is Bloomberg. Inflation is taking its sweet timecoming down, but we still think it's a downward trend.The big picture on a core basis is that the rate of inflation has come down alot. Really great set of data, I think, forthe Fed, especially on the inflation front.This to me is a chair who wants to cut. I think that and you can easily see oneand I think I think if he has the opening, I think he'll do too.And I think data like this, if it persists, I think that that that willgive him that opening.

I don't think July, but I do thinkSeptember is possible. Need to see more weakening in the data,especially on shelter inflation for the Fed to begin to gain confidence and getcomfortable in terms of beginning to ease rates.The truth is, I don't think the we're heading into a you know, a higher forlonger environment. I think we're heading into a normal,longer environment. Some of our guests on Bloomberg TV reactto you because of the latest US inflation print disinflation taking itssweet time. And why is it taking its sweet time?Because the moves have been there.

Of course you did get that expecteddatapoint that came through slightly softer.That of course fueled the rally that we're seeing.Core remains at 3.6, the headline remains at 3.4 is coming at 3.4.So the weakness is coming through a little bit of softness.Disinflation narrative is going to be back certainly for the markets.You're seeing that cross asset, but the stickiness is within services still.There's been work done on foods has been done on energy rents.A little bit of stickiness that's come off a little bit in the most recentdata, but that is a concern.

Services, though, is key because thewage component within services and you can see that that's the white bar thatreflects what's happening with services in contraction is cool goods.So that move has been significant from the pandemic era goods, core goods,manufactured goods, prices. Actually, contracting services remains achallenge for the Fed. Let's split the board and have a look interms of the Fed pricing them, because some of our guests commenting on that.Of course, you've seen where we started the year, of course, where five, sixcosts were priced it well, it's all the way back down again.Now you're back up to markets pricing,.

Too.Interestingly, Bloomberg Economics says July is a live meeting.There's not consensus yet, but Bloomberg Economics Anna Wong saying that July isa live meeting for the Fed. September, though, is priced at about60% in terms of the chance of a 25 basis point cuts in September.Let's split the board and have a look in terms of the repricing as well acrossthe dollar and treasuries, because you take you back to the time in March when,of course, you had that third straight print of higher inflation, higher CPI,and you've got that significant move, higher up in yields and a significantmove high up, of course, in the.

Bloomberg dollar index.This is the two year yield. It is back down.It's pared essentially all of the gains, all of the upside that came through inyears since that shocker of an inflation print in March and the Bloomberg dollarindex as well. The strength in the dollar hasessentially all but paired the strength that's come through for the Bloombergdollar. And you're seeing the gains, of course,across Asian affects today on the back of that, particularly the yen.Now, there is plenty more coming up, of course, on the show bringing back,including, of course, interviews.

The stand out will be Jp morgan CEO, ofcourse, Jamie Dimon, because we're going to be at the global markets conferenceback in Paris. The CEO, of course, Jamie Dimon, theCEOs, Jp morgan, Jamie Dimon is going to be speaking to us.We're also going to be speaking to the lender's chief economist.So views that, no doubt on that CPI, print and Fed expectations, the viewsthere from Jp morgan about that disinflationary trend, how muchconviction they have in that view. And interestingly as well, the head ofglobal commodity strategy, no doubt a conversation about what's happening withcopper, with the short squeeze that.

Continues in the US and whether or notthat copper story has further momentum. Jeff Carr, of course, telling usyesterday that he sees 15,000 on copper iron ore is also getting a lift in thesession today as well. What was going to get interviews withCEOs continuing through markets, they show the CEO of easyJet is coming up onmarkets today. That's at 745 a London time.Markets today coming up next. This is Bloomberg.

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