♪ >> GOOD MORNING.
THIS IS BLOOMBERG DAYBREAK EUROPE.
THESE ARE THE STORIES THAT SET YOUR AGENDA.
DONALD TRUMP IS FOUND GUILTY ON ALL 34 COUNTS BECOMING THE
FIRST FORMER U.S. PRESIDENT TO BE CONVICTED IN A
CRIMINAL CASE. CRUCIAL DATA ON BOTH SIDES OF
THE ATLANTIC. INVESTORS WATCH FOR THE TREND
FOR THEIR PREFERRED TREND. AND WE’LL PREVIEW THE NUMBERS.
BLOOMBERG REVEALS THAT U.S. OFFICIALS ARE SLOWING AMPLE I.
CHIP EXPORTS AMID A NATIONAL SECURITY REVIEW SENDING SHARES
OF N HAVE YOU HAD YEAH AND AM D-LOOR.
LET’S CHECK ON SOME OF THESE FINANCIAL ASSETS ARE TRADING. THE HAND OVER FROM THE MARKET
NOT YET EMERGED. THE CHIPMAKER SUPPLIES TO THE
MIDDLE EAST. WE SAW N HAVE YOU HAD YEAH DROP 3.5%.
TODAY, YOU CAN SEE THAT THE PICTURES ARE STILL NOT PRETTY
EUROPE STOCKS ARE SLIGHTLY UP. PHOTECHY SIMILAR BY THE NASDAQ IS STILL SEEN DRAGGING.
WE RALLY FIVE BASIS POINTS WITH THAT RISK OFF MOVE YESTERDAY IN
THE U.S. SESSION. U.N. FOCUS WE HAVE THAT C.P.I.
DATA COMING THROUGH. IT’S NOT JUST THAT NUMBER THAT
WE’RE LOOKING FOR, ALSO EUROPEAN C.P.I.
DATA THAT WE’RE WATCHING FOR AT 10:00 A.M. LONDON TIME.
GOLD BACK IN THE PICTURE COMING OFF RECORD HIGHS.
STILL UP 14% FOR THE YEAR IRKS EKING OUT SOME GAINS BY THE END
OF THIS WEEK. IT HAS BEEN A MAJOR RECIPIENT
IN TERMS OF SAFE HAVEN FLOW AND ON EXPECTATIONS OF EASIER
MONETARILY POLICY COMING OUT OF THE FEDS.
ALL EYESES ON THE ENERGY COMPLEX.
WE WILL BE TALK ABOUT THAT THROUGHOUT THE COURSE OF THIS
SHOW. FOR NOW, LET’S SEE HOW THE ASIAN MARKETS ARE FAREING. >> YEAH, JUMADA, SOMEHOW IT IS
RISK ON. THE STOCK BENCH MARK IS SESSIONS THREE-SESSION LOSING
STREAK. THE GAUGES ARE RIGHT. IT -- RISING.GOOD NEWS FOR
MARKETS. PERHAPS THE OPTIMISM THAT WE’LL
SEE MORE POLICY SUPPORT WHETHER IT’S BECAUSE OF THAT SOFTER
USDG. OR CHINA’S P.M.I. ON THE FACTORIAL TENTATIVE RUN
MISSING THE MARK. THAT MIGHT PROMPT SOME
EXPECTATION OF HOW THE STABILIZATION FOR THE PROPERTY
SECTOR MIGHT BE A BIT MORE FORCEFUL.
THIS IS WHAT SEEING AMONG STOCKS.
TODAY, WE ALSO GOT THOSE TOKYO C.P.I.
NUMBERS AND THE GAUGELE ROSE. AND THIS WAS DRIVEN MAINLY BY
THE RENEWABLE ENERGY SURCHARGE. NOT QUITE BECAUSE OF THE WAGE
GROWTH PUMPING THAT WAS THE D.O.J.
WANTS TO SEE BUT IT’S STILL IT’S RISING TRENDING IN THE
RIGHT DIRECTION THIS COULD PROMPT THE NATIONWIDE PRICE
TREND NEXT MONTH COULD ALSO REACCELERATE AND THAT SEEMS TO
BE SPURRING BETS AND THE D.O.J. CONTINUES TO HAVE THOSE RATE
HIKES. THE TREASURE IS ON THE JAPANESE
BONDS. WE’RE SEEING THE YEN MOVING
CLOSER TO 1.567 AGAINST THE DOLLAR.
BUT ALL THINGS CONSIDERED YOU’RE SEEING DOLLAR CHINA
DOLLAR YEN BEING SIDEWAYS IN ANTICIPATION OF THE CORE.
LET’S FLIP THE BOARD AND TAKE A LOOK AT WHAT WE’RE SEEING IN
CHINA ON THE MANUFACTURING PERFORM M.I.
REALLY MISSED THE MARK. THIS WAS THE BIGGEST MISS IN
MORE THAN A YEE. IT IS COMING THROUGH FROM
OUTPUT AND NEW ORDERS AN WHY THIS IS RAISING CONCERN THAT
THE ACTIVITY IS BECAUSE THIS IS A SECTOR THAT THE AUTHORITIES
HAVE BEEN RELYING ON TO DRIVE GROWTH.
AND THERE ARE SOME CONCERNS AS WE HEAD INTO THE U.S. ELECTIONS.
WE MIGHT SEE A RATCHETING UP OF TRADE TENSIONS THAT COULD PUT
PRESSURE ON MANUFACTURES. JUMANA? JUMANA:
AVREL THANK YOU SO MUCH FOR THE OVERVIEW.
OUR TOP STORY, DONALD TRUMP HAS BEEN FOUND GUILTY AND THE FIRST
FORMER U.S.’ BE CON CONVICT. IT IS A VERDICT THAT COULD
RESHAPE THE POLITICAL LANDSCAPE FIVE MONTHS BEFORE TODAY. >> THIS WAS A DISGRACE.
THIS WAS A RIGGED TRIAL BY A CONFLICT JUDGE WHO WAS CREPT.
A RIGGED TRIAL. A DISGRACE. THEY WOULD GIVE YOU VENUE TEAMS. WE HAD 5% OR 6% IN THIS DISTRICT IN THIS AREA. >> A GOOD PLACE TO START WOULD
BE FOR US TO TALK ABOUT EXACTLY WHAT PRESIDENT TRUMP HAD BEEN
CHARGED WITH. AND THEN WHAT HAPPENS NEXT? >> YES, THIS IS 34 COUNTS AS
YOU MENTIONED OF FALSIFYING BUSINESS RECORDS TO HIDE A HUSH
MONEY PAYMENT TO STORMY DANIELS. ABOUT $130,000.
THE ARGUMENT THAT THE PROSECUTION WAS DOING THIS WAS
CRUCIAL INFORMATION THAT THE VOTERS NEEDED TO DETERMINE IF
THEY WANTED SOMEONE TO BE PRESIDENT.
OF COURSE, THAT HAS BEEN NOW CONFIRMED BY ABOUT THE 12
JURORS UNANIMOUSLY IN THIS TRIAL.
WHAT HAPPENS NEXT IS A LITTLE BIT HAZY HERE.
THE NEXT STEP WILL BE THE SENTENCING.
IT’S FOUR WEEKDAYS BEFORE THE REPUBLICAN NATIONAL CONVENTION
WHERE THE G.O.P. WILL OFFICIALLY LIKELY CONFIRM
PRESIDENT TRUMP AS THE NOMINEE. HE IS THE PRESUMPTIVE NOMINEE.
IT’S A QUESTION OF WHAT DOES THAT SENTENCING LOOK LIKE?
HE IS ELIGIBLE FOR UP TO FOUR YEARS IN PRISON AT THIS MOMENT. >> IF HE IS SENTENCED TO
PRISON, THE EXPECTATIONS THAT THEY WOULD APPEAL AND THEN THE
NEXT QUESTION BECOMES HOW LONG DOES THAT APPEAL PROCESS RUN
FOR? BUT LET ME ASK YOU, HOW IS IT
LIKELY TO AFFECT TRUMP’S PRESIDENTIAL RUN INTO THIS
ROUND OF ELECTIONS? >> IF YOU LOOK AT THE POEHLING
IT’S SPLIT BECAUSE THEY HAVE CON PAIRED THE POLICY BETWEEN
TRUMP AND BIDEN. THEY’RE PRETTY SIMILAR.
THEY HAD SAID THAT A UNANIMOUS VERDICT ON THIS JURY COULD SWAY
THEIR MINDS. HOWEVER, WE HAVE SEEN
HISTORICALLY GOING INTO SOME OF HIS CRIMINAL INVESTIGATIONS
EVEN INCLUDING THE CASE AGAINST HIM THAT HE WAS A PART OF THE
CAPITAL RIOTS OR AT LEAST ENCOURAGING HIM.
THAT WOULD ELIMINATE FROM THE PRESIDENTIAL RACE EVEN IN THE
FACE OF THAT, YOU’VE SEEN THE REPUBLICANS THAT HAVE RALLIED
AROUND HIM REALLY SAY, LOOK, THIS IS MORE OF A REFLECTION OF
THE JUSTICE SYSTEM THAN ANY WRONG DOING ON HIS PAR AND
STILL LEAD IN THE POLLS THAT THE DEVELOP IS STILL PREPARED
TO MAKE HIM NOMINEE. >> TRACEY, THANK YOU SO MUCH
FOR THE OVERVIEW. SUCH A HUGE MOMENT IN U.S.
POLITICAL HISTORY. INVESTORS ARE LOOKING AHEAD FOR
THE RELEASE OF FOR MORE CLUES ON INTEREST RATES.
LOWERY LOGAN SAID RATES MAY NOT BE RESTRAINING THE ECONOMY.
BY CONTRAST, JOHN WILLIAMS SAID THERE MAY BE ENOUGH EVIDENCE
THAT IT IS WORKING ON BRING INFLATION DOWN. >> LOOKING AT THE BROADER
CONTEXT PROVIDES AMPLE EVIDENCE THAT THE MONETARILY POLICY IS
RESTRICTED IN A WAY THAT HELPS US ACHIEVE OUR GOALS.
WE’RE SEEING CLEAR AND CONSISTENT SIGNS BETWEEN THE
BALANCES OF SUPPLY AND DEMAND. WE’VE SEEN A BROAD BASE DECLINE
IN INFLATION. >> LET’SEN UP THE CONVERSATION
WITH ILLINOIS. WILLIAM SEEMS PRETTY CONVINCED
THAT THE INTEREST RATE LEVEL WHERE IT NEEDS TO BE IN ORDER
TO START BRINGING DOWN INFLATION.
THE QUESTION IS WHERE DOES HE EXPECT INFLATION TO END UP
GIVEN HOW RESTRICTIVE RATES ARE? >> WELL, NOTHING SUPER
SURPRISING. BUT HE DID SAY ULTIMATELY THAT
WE’RE LOOKING AT MAYBE 2.5% BY THE END OF THIS YEAR.
STILL OBVIOUSLY WELL OUTSIDE OF THE INFLATION TART.
I THINK WHAT THIS IS TELLING US IS THAT WE’RE SEEING FAIRLY --
AT LEAST ONE FED CUT RATE THIS YEAR THAT SEEMS TO BE SOMETHING
-- WE’VE BEEN GETTING OUT OF THIS FED.
BUT THE BEN OFFICIALS AREN’T GOING WAIT FOR IT TO FALL BACK
DOWN BEFORE THEY START MAKING THOSE CUTS.
WHAT WE NEED TO LOOK FOR IS AS A LOT OF THESE OFFICIALS HAVE
BEEN SAYING OVER THE PAST SEVERAL WEEKS IS THIS IDEA OF
SEVERAL SUSTAINED MONTHS THAT ACTUALLY SHOWS THAT THEY’RE
MAKING SOME PROGRESS, THAT THEY’RE ACTUALLY TRENDING
TOWARDS THE TARGET. WE’LL SEE WHAT THE LATEST PLAN
WILL TELL US LATER TODAY. THAT’S REALLY THE FEDS’ FLAVOR.
WE’RE ACTUALLY GOING TO SEE THE SLOWEST MONTHLY INCREASE THERE
AND IT’S ALL HERE. THAT WOULD INDICATE THAT THERE
HAS BEEN SOME LEVEL OF PROGRESS THAT WE’RE GOING TO CONTINUE TO
MAKE. A LOT OF THE OFFICIALS HAVE
BEEN OUT. THEY REALLY WANT TO SEE THAT
SUSTAINED COOLING IN THAT INFLATION GAUGE OVER THE NEXT
SEVERAL MONTHS AS THEY FINE TUNE EXACTLY WHEN THEY MAY BE
MAKING THAT FIRST CUT. >> YEAH, THE SKEPTIC IN ME IS
SAYING THEY’RE STILL AT 3:00%. LET THAT WAS BLOOMBERG’S GIA. >> THE RULING A. N. C.
FALLS WELL SHORT OF A MAJORITY LEAVING IT TO SEEK A COALITION
TO RETAIN POWER. JENNIFER IS AT THE NATIONAL
RESULT AND MID RUNS. AND JENNIFER, IT SEEMS THAT
JUST OVER 51% OF THE YET ARE GOING TO BE COUNT.
IT DOESN’T LOOK GOOD AT A.N.C. AT THIS POINT. >> THAT’S REALLY THE
SEPTEMBERMENT THAT WE ARE FEELING THAT POINT IN TIME AND
REALLY THE DISCUSSION RIGHT NOW AND NOT JUST THAT, IT’S
SURPRISING HOW WEED SO THAT THEY CAN PREDICTED.
BUT REALLY THE OTHER STORY HERE TOO IS REALLY THE VOTES THAT
WERE TAKEN FROM THE A.N.C. TO JACOB ZUMAS PARTY.
IT IS TRACKING TO BE THIRD BIGGEST PARTY WITH SUPPORT IN
TERMS OF THE SUPPORT AND RULE AREAS. SURPRISINGLY WELL. AND THAT WAS SCENE SEEN AS
AQUATION NAIR AREA. POTENTIALLY DANGEROUS AREA.
THEY WERE CONCERNED ABOUT THIS GOING INTO THIS SELECTION.
AND SO THE QUESTION IS, DOES THIS CONTINUE TO HOLD OUT AS WE
GET MORE VOTES IN? AND WE SHOULD CAVEAT THIS BY
SAYING AND YOU MENTIONED THIS IN THE INTRO, JUST OVER 51% OF
THE VOTES COUNTED. THE ELECTION COMMISSION HERE IS
ANTICIPATE THAT THEY’LL BE ABLE TO FINISH.
WE COULD SEE THE RULING PARTY GET BACK SUPPORT IN PARTICULAR
HERE, WHICH IS ONE OF THE MOST POPULAR PROGRESSES. >> THIS SEEMS TO BE A
REFERENDUM FROM A LOT OF THE RURAL VOTERS HERE IN SOUTH
CAROLINA. CONCERNED WITH THE DIRECTION OF
THE COMPANY AND WHAT RULING PARTY HAS SAID OVER THE PAST
FEW YEARS. WHICH PARER IN IF THEY ARE TO
START AT WHAT IS LIKELY TO BE A NEW ERA OF COALITION
GOVERNMENT,. WHICH OF THESE WILL THEY TEAM
UP WITH? >> YES, AND THAT IS THE BIG
QUESTION. CERTAINRY IT SEEMS TO BE --
THANK YOU. ALSO COMING UP, ON THE SHORE,
U.S. OFFICIALS FLOW THE EXPORTS SIGHTING NATIONAL SECURITY
CONVERSATION AND M HAVE YOU HAD YEAH SET TO BE AFFECTED. >> PLUS, CATCH OUR EXCLUSIVE
INTERVIEW AT THE SHAGRILAV DIALOGUE. ♪ >> WELCOME BACK TO BLOOMBERG
DAYBREAK EUROPE. BLOOMBERG UNDERSTANDS THAT U.S.
OFFICIALS HAVE SLOWED THE ISSUING OF LICENSES TO SHIP MAKERS LIKE NVIDIA AND IAMD.
THE MOVES COMES AS OFFICIALS CONDUCT A NATIONAL SECURITY
REVIEW OF A.I. DEVELOPMENTS IN THE REGION. LET’S GET MORE FROM PETER
ELMSTROM. MAYBE TELL US A LITTLE BIT MORE
ABOUT WHY THE U.S. ARE APPARENTLY SLOWING DOWN
THESE EXPORT LICENSES GRANDING OF THESE EXPORT LICENSES.
WHAT IS THE REASONING FOR THIS MOVE? >> SURE.
IT’S IMPORTANT TO DISTINGUISH WHAT THE U.S.
IS DOING HERE AND WHAT IT’S NOT DOING. IT IS NOT STOPPING THE
SHIPMENTS. IT’S SLOWING THEM DOWN.
THEY WANT TO DO A NATIONAL SECURITY REVIEW OF EXACTLY
WHERE THEY’RE GOING, WHAT THEY’RE BEING USED IF, WHAT
KIND OF APPLICATIONS ARE BEING DEVELOPED BY SOME OF THESE
MIDDLE EASTERN COUNTRIES. A.I. ACCELERATORS COME FROM NVIDIA
CORPORATION WHICH HAS BECOME A DOMINANT PLAYER IN A.I. CHIPS.
THEY’RE USED TO TRAIN THE A.I. MODELS. THEY’RE A PLAYER HERE.
BUT A MUCH, MUCH SMALLER PLAYER. WHAT WE SAW IN 2022 IS THAT THE
U.S. PUT EXPORT CONTROLS ON THE EXPORT OF THESE CHIPS IN CHINA.
AFTER THIS, WE SAW A HUGE DEVELOPMENT IN PARTICULAR. U.S.
IS GETTING A LOT OF THIS MONEY. CHINA AND THE U.S.
ARE THE PRIMARY DEVELOPMENT AND NUBS THE PAST. BUT WE’VE SEEN
AN INCREASE IN THE AM OF INVESTMENTS IN THE MIDDLE EAST.
THE COMPLEXITY IS THAT IT’S NOT CLEAR HOW THE A.I.
APPLICATIONS ARE GOING TO BE USED AND WHO THEY’RE GOING TO
BE USED FOR IN THE MIDDLE EAST, THEY WILL BE WORKING WITH
CHINESE COMPANIES OR OTHER ASIAN COMPANIES AS WELL.
THEY’RE TRYING TO SEE HOW THEY’RE BEING USED ESPECIALLY
THE HIGH VOLUME SHEMENTS. WHERE ARE THEY GOING TO GO
BEFORE THEY GRANT MORE LICENSES TO THE LIKES OF NVIDIA AND M.D.?
>> WE WERIER WE WERE TALK TALKING ABOUT THE YESO A AND
NVIDIA HAD TO SELL OFF. WHAT DOES IT MEAN FOR THE
COMPANIES INVOLVED? >> NVIDIA HAS BEEN A ROCKET
RIDE. IT’S A 2.7 INVESTORS.
JASON WING SAID THEY CAN SELL AS THIS POINT.
THE BIGGEST OR CUSTOMERS ARE ALL THE BIG AMERICAN TECH
GIANTS LED BY MICROSOFT AND GOOGLE UNTIL PARTICULAR.
IT’S ALSO SELLING IT TO OTHER REGIONS.
SO THEIR SALES ARE NOT ISN’T IT PART OF THEIR SELLS THAT POINT
AND THEY CERTAINLY RESPECT AINGE TO GET ALTERNATIVE FIRST
HIM. THERE’S SOME OTHERS INTEL THAT
ARE TRYING TO GET INTO THIS GROUND.
BUT FOR THEM, IT COULD MEAN A LITTLE BIT TO A SLOWDOWN IN
SALES. THEY EX-- EXTEND THE SEEM -- >>
, YEAH SUCH AN INTERESTING STORY.
WE’RE GOING TO KEEP MONITORING. WE PUT OUT AS A CLOTHES THERE
FOR NVIDIA, MORE THAN 3.8%. THAT WAS BLOOMBERG’S PETER
ELMSSTROM. YOUR GRID NEEDS A $640 BILLION
UPGRADE. WE’LL LOOK AT THE CHALLENGE TO
ACHIEVE NET ZERO BY 50. ♪ >> OPEC HAVE TOLD US THE GROUP
IS MOVING CLOSER TO AN AGREEMENT THAT MAY STRETCH INTO
2025. LET’S GET MORE ON THIS STORY
AHEAD OF SUNDAY’S MEETING WITH MARKETS REPORTER ANTHONY WITH
ME HERE IN CUBISM INTERESTING STORY FROM OUR BLOOMBERG TEAM
THAT THEY’RE CONSIDERING THE EXTENSIONS ALL THE WAY INTO
2025. DOES THAT TELL US IF THEY GO GO
AHEAD. IT IS A REFLECTION OF HOW WEEK
THEY SEE THE GLOBAL ECONOMY. >> WE’RE SEEING SIGNS THAT THE
MARKET IS GOING TO LOOK WASHINGTON NEXT YEAR -- WEAKER
NEXT YEAR. AND PRICES WILL BE LOWER THAN
AVERAGE. THERE ARE CONCERNS ABOUT THE
STRENGTH OF DEMAND, GROWTH. WE ARE EXPECTING DEMAND TO
START GROWING. WE’VE SEEN RECORDS BRINGING IN.
THAT’S EXPECTED TO TO KEEP GOING.
HOW MUCH CAPACITY IS COMING ONLINE BECAUSE WE HAVE A STRONG
GROWTH IN THE U.S. WE’VE HAD GROWTH IN BRAZIL,
GIANA. SOME OF THE OPEC PEOPLE WANT TO
PRODUCE. SO SOME OF THOSE DONE ARE
PRODUCING MORE THAN THEY HAVE PLEDGED TO.
WE’LL SEE WHAT HAPPENS. THESE ARE SOME OF THE EFFORT.
LET’S TALK MORE ABOUT THE DEMAND PICTURE.
WE HAD SOME WEAKER FACTORY DATAS.
AND THE SIGNAL IS COMING OUT OF CHINA HAS NOT BEEN SO POSITIVE.
HOW IS THAT LIKELY TO IMPACTING THE OUTLOOK FOR AL? >> THERE’S SOME -- OUTLOOK FOR
THE OIL? >> THERE’S A MAJOR IMPACTING.
SO WHEN THE PRODUCTS MARKETS GO DOWN. AND THE REFINERS NEED TO PRODUCELESS, THEY’RE GOING TO
ASK FORLESS CRUDE OIL. THAT WILL DEMAND THAT DAY.
WE ARE SEEING A LOTS OF OIL ON THE QUARTER.
AND SO THAT SUPPLY COMING IN IS GOING DECREASE.
SOME OF IF -- SOME OF THE DEMAND THERE. >> WE DO SEE LOT OF DEMAND FOR
OIL BUR BURNING IN THAT POWER STATIONS BEFORE IT TARPS OFF.
PLUS, THE U.S. DRIVING SEASON. A LOT. THOSE THINGS ARE BOTTOM. THEY’RE TRYING TO LOOK --
WEAKER MONTHS GOING FORWARD. >> UP WITH THING TO KEEP IN
MIND IS I’VE BEEN READING ABOUT CHINA BUILDING THEIR OWN STOCK
MILES. SOMETHING TO FEED THAT TOO. >> LET’S TALK TO ANTHONY. >> TIME NOW FOR THEIR DEEP --
ON THE GREEN ENERGY TRANSITION. ONE OF YOUR BIGGEST CHALLENGES
ON THE ROAD IS BUILDING MORE POWER LINES AND THE VAST IN
FACTMENT THAT IS NEEDED. SOLE’ MUST START OFF BY ASKING
YOU, HOW MUCH EUROPE IS GOING TO HAVE TO SPEND ON THESE GRITS >> WELL, LAST YEAR, EUROPE
SPENT ABOUT. IT IS PRODUCE TO WHERE IT’S
CONSUMED. IT’S BEEN TRENDING UP. OUT TO THE END OF T THE DECADE
SPEND $440 BILLION AND DOUBLED TO $100 BILLION.
IF YOU LOOK FURTHER OUT HAS A SECOND CYCLE OF SPIN.
IT HAPPENS AFTER 2035. YOU END UP WITH THESE TWO
DISCRETE CYCLES OF INVESTMENT THAT IS NEED TO BUILD OUT THIS
NET POWER SYSTEM. >> AND IS IT A CASE OF JUST
EXPANDING THE GRID TO ACCOMMODATE NEW RENEWABLES?
HOW ABOUT MORE E.V.’S NEEDING TO BE CHARGED. >> IT’S A BIT OF BOTH.
REKNUBLE AND E.V.’S. I THINK WHEN YOU LOOK AT THE
FIRST SPIN CYCLE, RENEWABLES REALLY TAKE THE FIRST FRONT
SEAT. THEY’RE ABOUT 40% OF THE CAPITAL EXPEND CURE TO -- AFTER
2025 YOU END UP WITH E.V.’S. ELECTRIFICATION OF INDUSTRY.
GENERAL LOAD GROWTH. WHEN YOU ZOOM BACK, YOU END UP
WITH A DOUBLE SPIN PROFILE. THE ONE IS DECARBONIZING
DEGENERATION AND THE FIRST IS TO GET INTO THAT ELECTRIFIED 10
ENERGY. HOW IS ALL OF THIS GOING TO GET
FINANCED? >> THE FINANCING QUESTION IS
ONE OF ON TOP OF MIND. I THINK ONE INTERESTING WAY OF
LOOKING AT THIS DATA IS BY NORMALIZING IT.
BE BY THE AMOUNT OF CONSUMPTION. WHEN YOU SEE THAT -- GREAT
PRESSURE IS REALLY HIGHEST THIS DECADE. AND THEN IT FALLS.
OUT TO 2050 BECAUSE THERE’S MORE CONSUMPTION TO PAY FOR
THAT. THEY’RE TRYING TO LOOK FOR.
NOT IN THIS TYPE OFFICIAL OR OTHERS.
WHAT THAT MEANS IS LONG-TERM ABILITY TO BE ABLE TO MOVE SOME
OF THAT INVESTMENT. IT’S GOING TO BE NEEDED THIS
DECADE INTO THE LATER HALF OF THE -- THE TRANSITION THE 2015
IS GOING TO BE AN IMPORTANT PART OF FINANCING THAT’S
INVESTMENT. >> SO INTERESTING.
THANK YOU SO MUCH FOR JOINING US TODAY.
DOWNLOAD THE SWITCHED ON PODCAST ON APPLE, SPOTIFY OR
WHATEVER YOU. DONALD TRUMP FOUND GUILTY ON
ALL 24 COUNTS IN HIS HUSH MONEY TRIAL, A VERDICT THAT COULD
HELP AHEAD OF THE ELECTION? ♪ >> THESE ARE THE STORIES THAT
SET YOUR AGENDA. TLTRO IS FOUND GUILTY, BECOMING
THE FIRST U.S. PRESIDENT TO BE CONVICTED IN A
CRIMINAL CASE. INVESTORS WATCH FOR THE
PREFERRED INFLATION PRINT. IT WE PREVIEW THE NUMBERS.
OPEC-PLUS IS MOVING CLOSER TO AN AGREEMENT.
WE LOOK AHEAD TO THE MEETING. WHAT'S GET YOU CAUGHT UP ON
MARKETS. RISK OFF TRANSPIRED YESTERDAY,
WALL STREET TAKING A TURN SOUTH. NASDAQ LOWERING SUGGESTING THE
U.S. IS SLOWING DOWN LICENSES FOR
CHIPMAKER SALES. THE BIG STORY OVERNIGHT. THE NASDAQ IS OPENING DOWN 3/10
OF 1%. S&P FUTURES ARE WEAKER. IN TERMS OF OTHER ASSETS, 10 YEAR YIELD IS ABOVE 4.5%, RISK OFF BECAME THE THEME.
EURO SIDEWAYS, GOLD COMING OFF RECORD HIGHS, GREENER TODAY AND
BRENT IS $81, SHY OF $82 WITH A BIG MEETING THIS SUNDAY. DONALD TRUMP HAS BEEN FOUND
GUILTY IN THE FIRST CRIMINAL TRIAL OF A FORMER U.S.
PRESIDENT IN HISTORY. A JURY CONVICTED HIM ON 34
COUNTS AND DISTRICT ATTORNEY ALVIN BRAGG WHO BROUGHT THE
CASE SPOKE AFTER THE VERDICT. ALTON:
WHILE THIS DEFENDANT MAY BE UNLIKE ANY OTHER, WE ARRIVED AT
THIS TRIAL AND THIS VERDICT IN THE SAME MANNER AS EVERY OTHER
CASE. FOLLOWING THE FACTS AND THE LAW
AND DOING SO WITHOUT FEAR OR FAVOR. JOUMANNA: MAJOR STORY. LET'S GET MORE. WE HAVE ALL BEEN WATCHING THIS
COURT CASE PLAYING OUT. MANY PAID ATTENTION TO WHAT
MICHAEL COHEN HAD TO SAY, FORMER TRUMP ALLY.
GIVE US DETAILS ABOUT HOW THIS CAME TO BE AND HOW THE JURY
CAME TO THIS CONVICTION? REPORTER:
A CONVICTION OF 34 COUNTS OF FALSIFYING BUSINESS RECORDS TO
STORMY DANIELS DELIVERED BY MICHAEL COHEN, TO THE VALUE OF
$130,000. HE IS THE STAR WITNESS SAYING I
DELIVERED AND I CAN PROVE IT IS TRUE. THE CONCERN WAS THIS WAS VITAL
INFO NEEDED AHEAD OF THE 2016 ELECTION. IT HID THE FACT OF DONALD
TRUMP'S CHARACTER. WHEN IT COMES TO STAR
WITNESSES, MICHAEL COLEMAN WAS A GAME CHANGER AND ALVIN BRAGG
IS THE LEAD PROSECUTOR AND NEW YORK STATE ATTORNEY.
THIS IS CRUCIAL IN TERMS OF THE BIAS THAT TRUMP ALLEGES EXISTS
WITHIN THE JUDGE. MERCHANT HAS BEEN A JUDGE OF
OTHER CASES AROUND TRUMP, SO THERE HAD BEEN MOVED BY THE
DEFENSE TO REMOVE HIM FROM THE CASE PROVING TO NOT COME TRUE.
JOUMANNA: MMM. THE SENTENCING DATE IS JULY 11.
WHAT HAPPENS IF TRUMP IS SENTENCED TO JAIL? KRITI:
THE SENTENCE COULD BE FOUR YEARS IN PRISON.
LIKELIHOOD IS LOW. ONE FACTOR IS THE LACK OF
PRECEDENT WHEN WE TALK ABOUT A CANDIDATE AND FORMER PRESIDENT.
THERE ARE SECURITY CONCERNS THAT THE JUDGE INDICATED WILL
BE PART OF HIS THINKING AND HIS AGE WILL BE A BIG ONE AND
IMPACT ON THE WIDER VOTER RHETORIC. THIS IS THE SAME CASE AROUND
THE FEDERAL RESERVE NOT MAKING DECISIONS BECAUSE OF HOW IT
CHANGES THE VOTER DEMOGRAPHIC. JULY 11 IS FOUR DAYS BEFORE THE
GOP CONVENTION, CRUCIAL WHEN IT COMES TO THE TIMING AND WHETHER
THEY DECIDED AN APPEAL WOULD BE VALID. JOUMANNA: MMM. LET'S REMIND VIEWERS THIS IS
NOT THE ONLY CASE ONGOING VERSUS THE FORMER RESIDENT.
THREE OTHER CRIMINAL CHARGES STILL BEING BROUGHT SO WHAT IS
THE STATUS OF THE OTHER THREE AND WHAT ARE WE WATCHING OUT
FOR? KRITI: THIS CASE IS BROUGHT BY
VIOLATIONS OF STATE LAW SO EVEN WITH THIS CONVICTION HE IS A
LEGIBLE TO RUN FOR PRESIDENT. WE ARE TALKING ABOUT CASES IN
WASHINGTON, GEORGIA, FLORIDA. IN THE CONSTITUTION THEY SAY IF
YOU ARE CONVICTED OF TREASON YOU CANNOT RUN FOR PRESIDENT, WHETHER HE INSTIGATED IT
THOSE ARE THE CASES WE ARE WAITING TO HEAR FROM.
YOU CAN SEE THE REPUBLICAN BASE HAS ONLY GOTTEN BIGGER DESPITE
ALLOCATIONS. JOUMANNA: THANK YOU VERY MUCH FOR THE
EXTENSIVE OVERVIEW. TURNING BACK TO MARKETS, THE
DOLLAR IS STEADY. CORE PCE INDICATOR SO LET'S
BRING IN MARK CUDMORE. GOOD TO HAVE YOU WITH US. LET'S TALK ABOUT THE
EXPECTATION THAT IT WILL SEE HOW, WERE LOOKING AT 2.7%,
COMFORTABLY ABOVE 2%. MARK:
WE HAVE STICKY INFLATION FOR A WHILE BECAUSE THE SERVICE
COMPONENT IS STICKY BUT COMMODITY PRICES ARE HIGH,
SHIPPING PRICES ARE GOING UP. IF IT IS A SOFT PRINT WE WILL
GET A BIG DIP. IF IT IS HOT THE RISE IN YIELDS
WILL CREATE DEMAND. THE DIP WILL BE BOUGHT BECAUSE
WE HAVE REBALANCING AND A BUNCH OF FLOWS REGARDLESS THOUGH THE
BIGGER BACKDROP IS UPWARD PRESSURE. THERE IS DEMAND TO BUY
TREASURIES. JOUMANNA: MMM. WE'VE GOT THE ECB ON THURSDAY
AND THEY MAY START THEIR RATE CUTTING CYCLE, BUT IT FEELS
MANY DIALED DOWN EXPECTATIONS OF SUBSEQUENT RATE CUTS, WHAT
IS ON THEIR MINDS? MARK: I AM -- TIME -- I AM WITH THE
CONSENSUS THAT THERE NEEDS TO BE RATE CUTS.
WE WILL PRICE IN MORE FROM THE ECB. THEY WANT MORE CUTS, A DOVISH
COMPONENT IN THE REACTION IS DOVISH. THE FACT IS GERMAN GROWTH AND
EUROPEAN GROWTH IS NOT POSITIVE. LESS PESSIMISTIC AND INFLATION
IS NOT GOING AWAY. GLOBAL ISSUES AND STICKY
INFLATION SO I DON'T THINK THE ECB WILL DELIVER CUPS SO THE
THEME OF PRESSURE IS GLOBAL. NOT JUST A FED STORY.
ECB WILL PRICE MORE RATE CUTS. OVERPRICED AT THE MOMENT.
JOUMANNA: MMM. MMM. AND LET'S NOT FORGET ABOUT
JGB'S. THANK YOU FOR JOINING US ON THE
SHOW. THAT WAS MARK CUDMORE. COMING UP, WE TALKED TO
LITHUANIA'S PRIME MINISTER ON DEFENSE IN SINGAPORE NEXT.
THIS IS BLOOMBERG. ♪ >> DISINFLATION HAS TAKEN PLACE.
WE SEE PRESSURES ON THE U.S.. MODERATING IN THE SECOND HALF
OF THE YEAR. JOUMANNA: THAT WAS JOHN WILLIAMS ABOUT
THE IMPACT ON INFLATION OF RATES. WE HAVE A PCE PRINT, LET ME
SHOW YOU A CHART BECAUSE THE EXPECTATION WAS IT WILL BE DROPPING AND MODERATING AROUND
0.25% WHICH KEEPS THE RATE AT 2.7% AND THIS IS WHAT CORE PCE
LOOKS LIKE OVER THE LAST SIX MONTHS.
THE TREND IS DOWNWARDS ALTHOUGH STICKIER THAN SOME HOPED.
THE OTHER CHART THIS BOIL. THIS IS POSITIONING FUTURES,
I.E. SPECULATORS POSITIONING FOR LOWER PRICES HAS REACHED THE
HIGHEST LEVEL SINCE 2020, QUITE EXTREME. THERE COULD BE A SQUEEZE IF
THERE IS A SURPRISE THIS WEEKEND. PLENTY MORE COMING UP, THIS IS
BLOOMBERG. ♪ JOUMANNA: U.S.
PRESIDENT JOE BIDEN SAYS UKRAINE CAN LAUNCH MUNITIONS
AGAINST RUSSIA AFTER MOUNTING PRESSURE FROM ALLIES. RUSSIAN GAINS ARE FEELING FEARS
IN THE BALTIC REGIONS. THERE IS AN ANNUAL GATHERING OF
DEFENSE OFFICIALS AND HASLINDA IS THERE WITH A GUEST. REPORTER:
IT IS CRUCIAL UKRAINE WINS THE WAR.
WITH ME IS THE LITHUANIAN PRIME MINISTER.
IT IS IMPORTANT UKRAINE WINS AND THE QUESTION IS HOW? >> WE ALL KNOW WHAT WE HAVE TO
DO TO HELP UKRAINE BECAUSE WE SEE DETERMINATION IN THE
COUNTRY FLAT BY FAMILY INTEGRITY IS THERE DESPITE
DOUBTS AND PROBLEMS. WITH WEAPONS AND SUPPORT IN CONGRESS
FOR UKRAINE ADOPTED WE KNOW THIS IS THERE.
WE NEED TO PROVIDE UKRAINE WITH HELP AND ON THE OTHER SIDE WE
NEED TO REDUCE CAPACITIES OF RUSSIA WITH SANCTIONS,
RESTRICTIONS TO GAIN MONEY TO FINANCE THE WAR. HASLINDA:
YOU TALK ABOUT ASSISTANCE. WHO SHOULD IT COME FROM?
WHAT THE U.S. CAN DO? GUEST:
LEVEL OF SUPPORT DIFFERENTIATES ACROSS COUNTRIES.
FOR LITHUANIA THIS IS A NUMBER THAT IS 1% OF GDP BUT WE ARE A SMALL COUNTRY SO 1% IS NOT HUGE
IN TERMS OF ACTUAL NOMINAL VALUE OF SUPPORT.
WHEN WE COMPARE WHAT COUNTRIES ARE DOING IN TERMS OF CAPACITY
FOR GDP, IT IS LOWER, DIFFERENT CALCULATION SAYING EVERYONE
PROVIDING AT LEAST .5% OF GDP IN THE AQUATIC WORLD, BIG
DIFFERENCE TO WHAT IS THERE. LOOKS LIKE SMALLER COUNTRIES
TEND, IT IS A RATIO CALCULATED BASED ON VALUE OF WEAPONS TO THE COUNTRY GDP IN TERMS OF THE
VOLUMES OF COURSE U.S. AND GERMANY PROVIDING BIG
AMOUNTS OF -- OF -- OF SUPPORT, BUT EACH COUNTRY CAN DO MORE
AND LOOK AT WHAT IS DOING WELL. HASLINDA:
LITHUANIA HAS TROOPS ON THE GROUND.
IS IT SOMETHING UKRAINE ASKED FOR? >> THIS IS LONG-STANDING
EXERCISE WHERE WE TRAIN UKRAINIAN SOLDIERS BEFORE
INVASION. LONG-LASTING COOPERATION
BETWEEN MILITARY FORCES IN UKRAINE, WE TRAIN THEM IN THE
COUNTRIES. WE WOULD TRAIN THEM IN UKRAINE
IN PARTNERSHIP WITH OTHER COUNTRIES WILLING TO DO SO.
HASLINDA: HOW ARE YOU ASSESSING A WIN FOR
UKRAINE? GUEST: IT DEPENDS ON US, BECAUSE ALONG
THE WAY WE ARE IN THE THIRD YEAR AND THERE WERE EPISODES OF
HESITATION ABOUT WHETHER UKRAINE CAN WITHSTAND, WE WERE
ALWAYS CERTAIN THEY WOULD FIGHT BACK AND WE NEED TO PROVIDE
SUPPORT. CAPABILITIES OF SMALLER COUNTRIES ARE SMALLER THAN
BIGGER COUNTRIES AND IT TOOK A WHILE FOR COUNTRIES TO SAY CAN
WE PROVIDE VEHICLES, THIS, THAT, WILL UKRAINE BE ABLE TO
DEFEND AND WE SEE IT IS STABLE IN THE THIRD YEAR, STILL
STANDING AND HOLDING THE LINE SO IT IS OUR DUTY TO DO WHAT WE
CAN. HASLINDA:
LITHUANIA SAYS NATO IS KEEPING ITS SAFE.
IT IS AMONG THE COUNTRIES THAT IS VULNERABLE TO RUSSIA'S GOALS.
HOW ARE YOU LOOKING AT HOW MAY TO TOKEN PREVENT SUCH THINGS
FROM HAPPENING? GUEST: IT IS TWO-WAY STREET, NOT ONLY
NATO, BUT EACH MEMBER OF NATO AND I THINK WE WERE AMONG THE
FIRST TO SORT OF LEARNED THE LESSON FROM 2014, INCREASED OUR
DEFENSE SPENDING NOW CLOSE TO THREE AND THIS WILL CONTINUE FOR A LONG TIME BECAUSE ARTICLE
THREE COMES BEFORE ARTICLE FIVE, HE MINDFUL AND THEN RELY
ON PARTNERS. THE MINDSET OF OUR PARTNERS WHO
WERE RELUCTANT TO INCREASE DEFENSE SPENDING IS CHANGING AND WHAT WE SEE NOW, COUNTRY BY
COUNTRY PLANNING TO INCREASE OR INCREASING DEFENSE, COMMITMENT
OF GERMAN GOVERNMENT TO WITH THE LANEY AND OTHERS.
THIS IS WHAT IT'S ABOUT BECAUSE THE EASTERN FLANK DUE TO ITS
PROXIMITY TO COUNTRIES THAT CANNOT LIVE WITH THE IDEA THAT
COUNTRIES CAN DECIDE FOR THEMSELVES, THIS IS A THREAT.
WE NEED TO ADAPT ACTIONS. WE HAD TWO MEMBERS OF NATO
RECENTLY JOINING, SOMETHING NOT IN DEBATE FIVE YEARS AGO AND
NOW IT IS A FACT THE WHOLE SITUATION AND SECURITY IS
CHANGED FOR GOOD. >> TRUMP WAS CONVICTED OF ALL
34 COUNTS BUT IT DOES NOT STOP HIM FROM BEING THE NEXT
PRESIDENT AND NOW WE KNOW HE SAID HE MAY BE LESS COMMITTED
TOMATO. HOW ARE WE ASSESSING POSSIBILITY? GUEST: YOU HEAR QUITE A LOT OF
RHETORIC THAT YOU ARE NOT SURE WHAT PART YOU NEED TO TAKE INTO
ACCOUNT. AND WHAT IS THE REAL THINKING
SO IT HAPPENS AND I REMEMBER THE DEBATE ABOUT NATO DURING
THE TERM OF PRESIDENT TRUMP AND THAT WAS THE VERY REMARK FOR
EUROPEANS THAT YOU HAVE TO BE MINDFUL THAT RUSSIA IS IN
EUROPE AND THIS IS THE CLOSEST PROXIMITY SO TAKE COMMITMENT
SERIOUSLY, NOT RELY ON U.S. GUARANTEES AND NOT ALL
COUNTRIES HEARD THE MESSAGE. WE MADE THIS DECISION OURSELVES
BECAUSE RUSSIA INVADED AND ANNEXED CRIMEA -- CRIMEA.
THE POLITICIANS IN THE BALTIC STATES AGREED TO, BUT NOT ALL
COUNTRIES AND NOW WE ARE IN THE THIRD YEAR OF INVASION AND THIS
CHANGE THE MINDSET OF MOST, MOST EUROPEAN COUNTRIES.
DEFENSE SPENDING INCREASING, SORT OF COMMITMENT FOR
COLLECTIVE SECURITY BECOMING STRONGER. HASLINDA: YOU HAVE THE EUROPEAN ELECTION
COMING UP, HOW MUCH IS AT STAKE? PRIME MINISTER:
LOTS IS AT STAKE BECAUSE UKRAINE REALIZED SUPPORT OF
ALLIES LIKE U.S. 4 -- FOUR DASHBOARD PARTICULAR
COUNTRIES PROVIDE SIGNIFICANT AMOUNT OF WEAPONS AND FINANCIAL
SUPPORT, WHERE EUROPEAN UNION IS VERY IMPORTANT BECAUSE WE
PROVIDE SIGNIFICANT CHUNK OF MONEY FOR UKRAINE TO MEET DAILY
NEEDS BECAUSE IT IS IMPORTANT. STATE NEED TO BE RUN AND
TENSIONS NEED TO BE PAID. EUROPEAN UNION IS VERY
IMPORTANT PART, WE CANNOT THINK WE'VE NOTHING TO DO WITH IT SO
THE LEADERSHIP, THE PRESIDENT OF COMMISSIONERS SHOULD STAY
THERE. HASLINDA: WE HAVE TO LEAVE IT THERE.
PRIME MINISTER OF LITHUANIA GIVING HER ASSESSMENT ON THE
OUTLOOK WHEN IT COMES TO UKRAINE. HEADING BACK TO YOU.
JOUMANNA: THANKS FOR THAT INTERVIEW.
ONE LINE STOOD OUT IN THE FACT THAT SHE SAID SECURITY HAS
CHANGED. IN RESPONSE TO THE QUESTION
ABOUT NATO AND THE NEED FOR THE ARTICLE FIVE TO BE BEEFED UP BY
EUROPEAN NATIONS. INTERESTING COMMENTARY.
HELP ME TO COME NOT JUST FOR UKRAINE BUT APPLYING SANCTIONS.
THAT IS IT BUT LATER ON BLOOMBERG TELEVISION DO NOT
MISS OUR INTERVIEW WITH ED FROM DUBAI AND GUY JOHNSON.
UP NEXT IS MARKETS TODAY, THIS IS BLOOMBERG.
