THAT FED PAUSING MEETING LATE IN SEPTEMBER. FOR THE INSIGHTS YOU NEED AND THE CONVERSATIONS THAT MATTER, LET'S GET STARTED. >> NEWSMAKERS AND MARKET MOVERS.
THIS IS THE PULSE WITH FRANCIE LUCK. >> LOOK TO THE POST. EUROPEAN STOCKS TRAINING HI.
JOINING US NOW IS THE INVESTOR AND PORTFOLIO SOLUTIONS. THANK YOU BOTH FOR JOINING US. WELCOME TO SEPTEMBER.
THAT HAS GONE VERY FAST. SEPTEMBER HASN'T BEEN THE BEST MONTH OVERALL FOR EQUITIES. SOME OF THE DYNAMICS HERE COULD DIFFER >> DEFINITELY.
SEPTEMBER IS BACK-TO-SCHOOL AND HISTORICALLY HASN'T BEEN ONE OF THE BEST MONTHS BUT I THINK YOU'RE RIGHT FRANCINE. WE ARE LOOKING THAT A RETURN FROM A VERY BUSY SUMMER EVERYTHING ABOUT THE END OF JULY, THE BEGINNING OF AUGUST, EVERY THING THAT HAPPENS THERE. I THINK THERE WAS A BENIGN ELEMENT OF THE EQUATION COMING BACK IN TERMS OF ETP FLOWS, THEY BEEN SCARED BY WHAT HAPPENED AND THIS IS ALL WITHIN THE RISK ON THAT HAS REMAINED AS A THEME, THERE'S BEEN A SHIFT TOWARD MORE OFFENSIVE QUALITIES.
EQUITIES HAVE STILL. I THINK IT WOULD BE WRONG TO SWEEP UNDER THE CARPET WHAT HAS HAPPENED IN THE SENSE THAT THE VELOCITY AND THE MAGNITUDE OF THE CHANGES THAT WE SAW HAVE IMPRESSED THIS INCLINES. I THINK EVERYBODY MOVES INTO THE END OF Q3, THE BEGINNING OF Q4 WITH AN EXPECTATION OR SOME FORM AROUND OTHER VOLATILITY AND HEARING MORE AND MORE THE IDEA OF POSITIONS COMING UP.
WE WILL TALK ABOUT THIS IN A SECOND BUT THERE IS THAT YOUR COVER THAT INSISTENCE OF THE HUGE SELLOFF THAT WE SAW IN AUGUST. THERE IS LITTLE BIT OF ANXIOUSNESS TO SEE COCO'S AGENDA BECAUSE OF THE DATA. >> HE HAS.
WE GOT A FEW SETS OF BAD DATA HERE. ON THE ONE HAND IT SEEMS LIKE MANUFACTURING REALLY IS TURNING AROUND KIND OF ON THE OTHER HAND, NEW HOME SALES OF A LOT OF THE BIGGEST PROPERTY DEVELOPERS ARE STILL DOWN A LOT FROM A YEAR AGO. I THINK THERE ARE A FEW CONCERNS ON THE HORIZON.
CHINA HAS BELIEVE A LOT ON DEMAND FOR ITS PRODUCT. IF WE DO HAVE A BIT OF A GROWTH SLOWED DOWN IN THE U. S.
AS WE ARE REALLY STARTING TO SEE IN EUROPE, WHAT DOES THAT MEAN FOR THAT PART OF THE CHINESE GROWTH ENGINE. AT THE SAME TIME, IT DOESN'T SEEM LIKE CHINESE CONSUMER DEMAND IS TURNING AROUND JUST YET. THAT IS VERY MUCH TIED TO THE PROPERTY MARKET.
WESTWOOD HAPPENS. IN TERMS OF THE POLICYMAKERS AND WHAT WE HAVE BEEN EXPECTING IS A BIG BAZOOKA. IS THERE A STRUCTURAL PROBLEM WITH TANNER THAT COULD LEAD TO DEPRESSION WORLDWIDE RUSSIAN MARK >> AT THINK THAT IS ONE OF THE ISSUES HERE.
FOR YEARS THEY WERE BUILDING A LOT. AND WE HAVE THE DEMOGRAPHIC TREND, DEATH -- KIND OF TURNING AGAINST THAT. THE FED WILL BE CUTTING RATES.
IT DOES GIVE CHINA TO -- SOME ROOM TO KEEP RUNNING RATES. >> WHAT YOU DO WITH ALL THESE ASSETS? DO YOU SELL THEM FOR A SPOT.
IN THAT HUGE MASSIVE SELLOFF? >> 100%. >> THAT WAS A RELIEF.
BUT YOU'RE RIGHT. IT IS AN INTERESTING EQUATION AS WE PREPARE FOR THE YEAR AND REBALANCING. I AGREE IN TERMS OF THE INTERCONNECTIONS AND THE ATTENTION TO CHINA BEING ONE OF THE MANY ELEMENTS.
I GUESS THE SECRET IS IN THIS CONCEPT OF ADAPTING TO A NEW INVESTMENT WELL THAT IS NOT THE GREAT MODERATION IS ERASING THE OPPORTUNITIES THAT WE HAVE IN AN ENVIRONMENT WHERE ONE CLEAR SENSING AREA IS GOING TO PLAY OUT AND THAT IS FROM A BEHAVIORAL PERSPECTIVE. IN TERMS OF MOVING AWAY FROM THAT IDEA THAT WE ARE GOING TO POSITION MINE, YOUR CHESSBOARD FOR A SCENARIO I HAVE BEEN -- I WOULD FIND A CLEAT OR I WILL TRY TO SEIZE A PARTICULAR MOMENT OR TRAIT. THIS IS MORE AGAIN, CHATTED HERE.
REALLY THIS LOGIC OF ADDITIONAL TEST. BEING READY FOR WHATEVER CAN BE THROWN AT YOU. A LOT OF PEOPLE HAVE ASKED EASIER BUT THE POINT OF DIVERSIFYING FOR PLAYER WITH SEVEN WHEN THE PETITION -- WHEN THE WINTER EXCEL.
WE HAVE SPECTACULARLY SEEN. THAT IS WHERE MY VIEW AROUND COMING BACK FROM THE SUMMER FOR DELIVERING RETURNS TO END CLIENTS IS THAT CONCEPT AROUNDS THE POSITIONS. QUICKTIME THE QUESTIONS DO FEEL ON THE IN CASH?
MAYBE THERE IS A LOT OF INVESTOR APPETITE. >> DEFINITELY WAYPOINT. THEY HAVE SOMEHOW CONTINUED TO REMAIN VERY -- REMEMBER.
THAT IS A LONG-TERM WAY TO DO ALL OF THIS. THE POSITIVE WE ARE ALL OBSERVING IS THE BREATH OF THE MARKET. WE HAVE OTHER OPTIONS AGAIN.
IF I THINK ABOUT ACROSS-THE-BOARD FROM A REGIONAL PERSPECTIVE, A LOT OF THESE DISCUSSIONS AROUND JAPAN, YOU CAN TAKE DIFFERENT VIEWS BUT IT IS IN. THE REMAINS UNDER OWNED FROM A STRUCTURAL PERSPECTIVE. YOU ARE PROBABLY TOO EARLY TO MOVE TOWARDS BUT WE SEE A LOT OF INTEREST GOING BACK.
PROBABLY FROM INTERNATIONAL INVESTORS OVER THERE AND THEN SECRETORY LIES, LOOKING AT THE FLOWS IN AUGUST, TECH REMAINED OVER 7 BILLION FOR THE VAST MAJORITY. FOREIGN SIX-MONTH -- CONSECUTIVE MONTHS OF INFLOWS. AT LEAST THERE OPPORTUNITIES OUT THERE.
>> WHEN YOU LOOK AT THE U. S. , THERE'S BEEN A LOT OF FOCUS.
UNDER THIS ARE SHIFTING BECAUSE OF THE ELECTION? NOVEMBER 5. BUT THAT IS THE BIG QUESTION HERE.
THE PROBLEM WITH THAT IS YOU KIND OF BEAT THE ECONOMIC BACKGROUND TO BE RESTRUNG OR YOU MEET CERTAINTY THAT TRUMP PRESIDENCY IS GOING TO HAPPEN AND HE'S GOING TO CUT TAXES AND BRING ABOUT THAT ROTATION. I THINK THAT IF WE DO SEE A BIT MORE CONFIDENCE COMING IN WITH THE U. S.
ECONOMY OR MAYBE TRUMPS AUTHORIZING -- THERE IS A POTENTIAL FOR THAT ROTATION GOING ON BECAUSE WE SAW A LITTLE BIT OF THAT THIS SUMMER BUT GENERALLY THAT IS STILL PRETTY UNDER OWNED. >> YOU ALSO HAVE NVIDIA. 50% MARGINS ARE FAILING TO IMPRESSIVE PEOPLE.
>> IS THE EVALUATION CONCERNING MARK IS THAT WHY WE SAW THE END OF LAST WEEK, WHITE A LOT IN EUROPE. >> FOR ME, IT REALLY DEPENDS ON THE INVESTMENT THAT YOU'RE LOOKING AT FROM THE PORTFOLIO PERSPECTIVE. THAT WILL BE WHY OUR ECONOMIES.
HAVING EXPOSURE THERE. IF I THINK ABOUT OUR EUROPEAN INVESTORS, THAT TENDS TO LEAD TO ANOTHER ISSUE THERE, IT PREVENTS THE OPPORTUNITIES. I FURTHER ACKNOWLEDGE WHAT WE SAW LAST WEEK AGAIN REMINDS US OF THE NERVOUS JUST COVER THE JUMPINESS, HOW MUCH ATTENTION WE NOW HAVE NOT ONLY IN AGGRAVATION BUT ALSO FROM AN EARNINGS PERSPECTIVE.
>> WAS THERE ANYTHING ELSE YOU ARE LOOKING AT MARK THERE ARE LOADS OF THINGS WHERE WE ARE KIND OF AT BOILING POINTS. WE TALKED A LOT ABOUT CRYPTO TWO WEEKS AGO. >> YES.
SPEAKING OF POLITICS AT THE EUROPE IS ANOTHER FLASHPOINT HERE. PEOPLE WILL BE WONDERING WITH ELECTION RESULTS OVER THE WEEKEND IN GERMANY AND HE CONTINUED UNCERTAINTY IN FRANCE. I WONDER IF THAT IS AFFECTING A BIT OF THE APPETITE FOR INVESTING IN EUROPE.
THIS IS JUST THE BIG U. S. DAILY.
I THINK INVESTORS ARE INITIALLY COMFORTABLE POSITION WHERE THEY KNOW THAT RECUT IS IN SEPTEMBER. BUT THEY KIND OF NOT THAT WORRIED ABOUT THE U. S.
ECONOMY ANYMORE. IT WILL BE KIND OF INTERESTING IF THERE'S ANY DISCIPLINE DATA THAT MIGHT CHANGE THAT. >> THINK YOU BOTH FOR JOINING US.
COMING UP, GERMANY'S FAR-RIGHT PARTY BIXBY EANES IN REGIONAL ELECTIONS BUT IS IT ENOUGH TO TAKE POWER? THAT IS THE QUESTION WILL ANSWER. THIS IS BLOOMBERG.
HIS >> WELCOME BACK EVERYONE. THE ALTERNATIVE FROM PURITY HAS BEEN BLOCKED FROM POWER DESPITE WINNING SUNDAY'S VISION ELECTION. THE SKIMMER WITH ALL OF YOUR WORK.
GOOD MORNING. BRING US UP TO SPEED WITH EXACTLY WHAT'S HAPPENED. >> YOU HAD TWO-PUTTS OVER THE WEEKEND.
IN BOTH OF THESE ELECTIONS WE HAD A GOOD SHOWING FROM THE FAR-RIGHT BUT ALSO THE FAR LEFT. THESE ARE REGIONS THAT USED TO BE UNDER THE GDR, INITIAL AND TENDED A BIT MORE FOR THE POLITICAL EXTREMES THAT'. THIS IS BECAUSE IT IS THE FIRST ON THE AFD HAS COME FIRST IN SUCH AN ELECTION.
IT IS THE FIRST TIME A FAR-RIGHT PARTY HAS HAD THAT KIND OF SHOWING SINCE THE SECOND WORLD WAR. IN A PLACE THAT HAS BEEN SORT OF SYNTHETIC. IT WAS ONE OF THE REASONS THAT VOTED FOR THE NAZIS VERY EARLY ON AND IT'S LEADER, THE DIFFERENT CHAPTERS OF AFD BOTH IN SAXONY AND TO FIGURE DESIGNATED EXTREMIST POLITICAL ORGANIZATIONS BY GERMAN INTELLIGENCE.
THE LEADER HAS BEEN FINED TWICE AND ALLUDING TO A NAZI SALUTE. THESE SORTS OF THINGS HAVE A LOT OF PEOPLE IN GERMANY ON THE POLITICAL MAINSTREAM. A LOT OF PEOPLE GOING TO EITHER END.
THIS IS ABOUT THE SPORT FOR THE COALITION GOVERNMENT. >> THINK YOU SO MUCH. LET'S GET ONE FROM OUR GUEST.
IT IS UNCLEAR FIRST OF ALL. WE CAN'T REALLY TALK POLITICS BUT WHEN YOU LOOK AT IF IT IS ECONOMY OR IMMIGRATION, THAT WILL CHANGE POLICIES SO WE WILL BE LEFT WITH ECONOMIES THAT COULD LOOK RADICALLY DIFFERENT TO WHAT WE HAVE RIGHT NOW. >> I THINK THERE IS A THEME THERE IN 2024.
WE'VE SEEN A NUMBER OF ELECTION SPIKE BRACING FOR LATER IN THE YEAR FOR THE BIG ONE, THE U. S. .
I AGREE WITH YOU. THIS IS A BIT OF A UNDERWEAR. IN TERMS OF FACTORS SUCH AS THE POLITICAL BALANCE AND THEREFORE DECISIONS ON TRADE, IMMIGRATION, TARIFFS REALLY SHAKE COME IN A MANNER THAT ACTUALLY DID IS TO BE THE CASE THROUGHOUT THE GREAT MODERATION.
THERE IS CERTAINLY A THEME AND THAT IS WHAT RINGS -- THAT'S WHAT SPARKS TO MIND WHAT WE SAW OVER THE WEEKEND IN TERMS OF GOING BACK TO THINKING ABOUT THAT ELEMENT OF WHAT WOULD HAPPEN IF WHEREBY THE LIKELIHOOD OF ONE SPECIFIC SCENARIO HAS THIS IDEA OF MULTIPLICITY THAT WE NEED TO PAIR FOR. NOT AN EASY JOB FOR AN INVESTOR. THE FLIPSIDE OF THE SILVER LINING IS THAT WE CONTINUE TO SEE BREATH COMING THROUGH INTO THE MARKETS.
I FOUND THE U. S. RESULTS EXTREMELY FASCINATING.
WE HAVE SEEN AN EXCELLENT EPS GROWTH RATE BUT AGAIN, IT ISN'T TECH THAT IS DRIVING ANYWHERE. HEALTH CARE WAS ACTUALLY THE BEST AT 17%. YOU START TO SEE THAT ELEMENT.
ONLY ONE SECTOR OUT OF ALL OF THEM DIDN'T DELIVER POSITIVE RESULTS. THE SITUATION IS A LITTLE BIT MORE NUANCED. WE STILL HAVE HALF OF THE SEQUITURS -- THE SECTORS IN NEGATIVE TERRITORY.
>> TOWARDS THIS RANGE OF OUTCOMES AND GREAT PROBABILITY OF VOLATILITY AS WE SAW THROUGHOUT THE SUMMER, I THINK THERE IS A LOT OF POSITIVE ELEMENTS TO EMBRACE IN TERMS OF THAT OPPORTUNITY FOR DIVERSIFICATION. >> THAT DOESN'T MEAN YOU STAY AWAY FROM SOVEREIGN BONDS. THAT MEANS YOU FOCUS ON SOME OF THE INDUSTRIES OR A BREAKDOWN SUCH AS DEFENSE.
IS THERE A WAY TO DO THIS? >> ETIQUETTE WOULD BE DIFFICULT TO IGNORE THE POLITICS THAN WHAT IT WAS BEFORE. AND ALTHOUGH IT WOULD BE NUANCED AS WELL.
I THINK IF YOU LOOK AT HOW INVESTORS HAVE WITH THEIR FEET, THAT THEME OF DEFENSIVENESS POTENTIALLY BEING TRANSLATED INTO FIXED INCOME WHERE WAS OUR RATES BEING THE LEADING FORCE AND INVESTMENT GRADE AS A RESULT. VERY SUBDUED AND ACTIONS AND ACTIVITY IN TERMS OF EMERGING MARKET DEBT AND HIGH YIELD. CERTAINLY RATES ARE COMING AND WE ARE PREPPING FOR NEXT WEEKEND WHEN WE WILL SEE ACTION BUT AT THE SAME TIME, THOSE ARE GENTLE.
I WILL NOT BRING THAT BACK. WE HAVE BEEN INVESTING INTO IT FOR THE GREAT MODERATION. THE IDEA OF LOCKING IN YIELD IS STILL VERY POWERFUL FOR YOU.
QUICK THANK YOU SO MUCH. WE DID NICE TO BE 60 VIEW. DO YOU HIS PRIVATE EQUITY INDUSTRY WAYS IT ON THE GOVERNMENT'S TAX PLANS.
THIS IS BLOOMBERG. THE UK'S PRIVATE EQUITY AND STREET HAS OFFERED TO SUPPORT SOME OF THE GOVERNMENT'S PROPOSED PLANS TO REMOVE A TAX BREAK. YOU CAN'T FINANCE TEAM LEADER NOW JOINS US.
WHAT DOES THE GOVERNMENT -- FOR THE EXIT TALKING ABOUT DOING AND WHY ARE PRIVATE EQUITY FIRM SO WORRIED ABOUT IT SHOULD MARK >> A LOT OF DIFFERENT OPTIONS ON THE TABLE BUT I THINK THE ONE THAT THE INDUSTRY'S MOST WORRIED ABOUT IS THE IDEA THAT THE GOVERNMENT IS PLANNING TO REMOVE A DECADES OLD TAX BREAK THAT THEY OFFERED TO DIFFERENT DEALMAKERS. UNLESS THE CHART TO INVEST IN FUNDS THEMSELVES. YOU CAN SEE THAT CAUSE A LOT OF ANGST AND OVER THE WEEKEND WE HEARD FROM THE INDUSTRY IN RESPONSE TO THIS AND THEY FINALLY KIND OF HEARD FROM THEM.
TAKING A DEEP DIVE INTO WHAT THE GOVERNMENT IS PROPOSING HERE. I THINK WHAT WAS SURPRISING ABOUT WHAT WE HEARD OVER THE BEACON WAS THAT THE INDUSTRIES -- AS LONG AS IT DOESN'T APPLY BUT DIRECTLY, IT ONLY APPLIES TO FUNDS THAT WE CREATE GOING FORWARD, THIS CONNECTS THE WORK. THERE ARE LOTS OF QUALIFIERS, ITS ABILITY TO FULLY SUPPORT ANY MEASURES BUT IT SOUNDS LIKE THEY'RE KIND OF WARMING UP TO THE IDEA THAT THIS IS IN THE WORKS AND TRYING TO FIGURE OUT A WAY TO WORK.
CRAFTY THING PRIVATE EQUITY FIRMS HAVE JUST GOT IS TO GET IDEA OR THEY'RE TRYING TO HELP THE GOVERNMENT TO HELP THE GASKET THAT BEST POSSIBLE OUTCOME? >> OBIT ABOUT. WE HAVE HEARD FROM LABOR THAT THEY ARE PLANNING TO ROLLBACK SOME DIFFERENT TAX RATES GREAT THE BIGGEST BURDEN WILL FALL OTHERS WITH THE WIDER SHOULDERS.
SO I THINK THEY KNOW SOMETHING IS COMING ANOTHER TACTIC HAS BEEN WITHIN THAT UNDERSTANDING, HOW CAN WE MAKE THIS WORK FOR US ESTIMATE I THINK ONE OF THE THINGS THEY RAISE A LOT IS LONDON'S ATTRACTIVENESS AS A FINANCIAL CENTER. IT IS A WISE MOVE BECAUSE I THINK YOU HEAR SOMETHING FROM LABOR. THAT IS ONE OF THE PRIMARY CONCERNS.
WE SEE THEN USING THAT AS ALMOST A TACTIC TO TRY TO GET THE GOVERNMENT LISTEN TO WHAT THEY'RE TRYING TO SAY. >> ETIQUETTE IS THAT TOO EARLY TO TELL HOW LIKELY OR BALLISTIC THAT PLAY IS. BUT IT IS DIFFERENT AND SOMETHING THEY HAVE ONE WILL HAPPEN.
I THINK AS THESE PROPOSALS BECOME LAW AND FLOW-THROUGH THE SYSTEM, YOU WILL SEE PEOPLE DECIDE IF THIS WAS A BIG ENOUGH BREAK TO MAKE IT WORTH STAYING IN LONDON OR WILL HE GO TO CHEAPER PASTORS AS IT WORK? QUESTION, THANK YOU SO MUCH. COMING UP, NATIONWIDE STRIKES ACROSS ISRAEL WITH THOUSANDS EXPECTED TO TAKE THE STREETS TODAY, TO BE GOVERNMENT DOES MORE TO BRING HOSTAGES BACK HOME.
THIS IS BLOOMBERG. ♪ >> GOOD MORNING EVERYONE. THESE ARE YOUR TOP STORIES.
GLOBAL EQUITIES BEGIN SEPTEMBER ON THE BACK FOOT. WITH WEAK MANUFACTURING DID OUT OF CHINA. THE HANDLING OF THE HOSTAGE CRISIS AND A POSSIBLE CEASE-FIRE DEAL WITH THOMAS.
AND JIM IS FILLED COALITION IS PUNISHED. THE I HAVE THE ON COURSE TO BECOME A GERMAN STATE BALLOT FOR THE FIRST -- TO ONTO HIS BILLS LARGEST GROUP. DESPITE THE ISRAELI GOVERNMENT ASKING FOR KIMBERLY INJUNCTION AGAINST.
ANOTHER TRAIT WILL BE THE FRONT WAS FORMED YET. THIS AFTER LARGE PROTESTS OVER THE WEEKEND FOLLOWING THE DISCOVERY OF THE BODIES OF SIX HOSTAGES IN IT IN THE STREET. THIS IS ANOTHER BLOW FOR NET YOU HEARD WESLEY HAVE SEEN FIGHTS DISRUPTING FOR SOME HOURS THIS MORNING.
GOVERNMENT OFFICES CLOSING. WE ARE STARTING TO SEE THE BEGINNINGS OF THIS INDUSTRIAL ACTION. DOES IT CONTINUE TO BE NATIONWIDE FOR DAYS, WEEKS, WHATEVER?
BUT GIVEN THE PROTESTS WE SAW YESTERDAY AND AGAIN TODAY, KIND OF REMINISCENT OF THOSE ANTI-NETANYAHU -- THERE IS OBVIOUSLY A DEEP WELL OF DISQUIET AT HIS LEADERSHIP. WHEN THE ATTACKS HAPPENED, THERE IS FRUSTRATION THAT THERE CANNOT BE A CEASE-FIRE BECAUSE THIS WAS OBVIOUSLY DEVASTATING FOR GAZA. THERE HAS BEEN NO GREAT PROGRESS .
WHAT IT MEANS IN TERMS OF FORCING HIS HAND IS HARD TO SAY. HE SEEMS QUICK TO CONTINUE ON THE PATH HE IS ON. HOLDING FAST TO HIS -- HOLDING FAST TO HIS DEMANDS.
BUT HE BREAK ON THIS? IT IS A BIT UNLIKELY. >> THEY ALSO REMAIN UNLIKELY BECAUSE THEY STUCK OTHER VARIOUS STICKING POINTS ABOUT IT.
HE IS ADAMANT THAT HE HAS HAD CONTROL MILITARILY. AND THEN POSSIBLY TO USE THAT AS A LAUNCHPAD AGAINST ISRAEL. IS IT THE PATHWAY TO THE END OF THE WAR?
IS IT JUST A CAUSE THE FIGHTING? A LOT OF STICKING POINTS. HANDS IN THE AIR, SAYING WE CAN'T GET ANYWHERE.
WE'RE RUNNING ON OUR OWN ELECTION CYCLE IT DOESN'T SEEM HE HAS THE IMPETUS TO FORCE AN AGREEMENT. >> TO SEE STAY IN POWER OR IS THIS A QUESTION FROM 2025 AND BEYOND TO MARK >>'S ONLY PUSH THAT FURTHER INTO THE FUTURE WITH THIS WAR THAT HAS BEEN GOING ON. QUESTIONS ABOUT HIS LEADERSHIP BEFORE THE WAR HAPPENED.
OBVIOUSLY THERE IS NO MORNING LEO CASES AGAINST HIM. POPULAR PROTESTS HAVE FIT TO DISLODGE THEM SO FAR. PRETTY SIZABLE.
DO THEY NOW GET TRACTION? ONCE THIS THE START TO SLOW DOWN , IT WILL DEFTLY COME BACK TO THE FRONT OF THE CONVERSATION >> A COUPLE OF HEADLINES. IS THERE A DEEP FEAR OF ESCALATION MARK >> THAT IS THE CONCERN FAMILIES.
THAT STRIKE -- THIS SEEMS TO BE SPREADING FURTHER INTO THE WEST BANK. IS THIS SPREADING? IS IT GOING TO ESCALATE?
EVEN IF IT DOESN'T TURN INTO A FULL REGIONAL WAR, IT IS JUST TAKING UP A LOT OF TIME AND ENERGY RESOURCES, MANPOWER. PEOPLE INSIDE ISRAEL FILLING WITH THEIR LIVING ALL THE TIME WITH THE THREAT OF SOME KIND OF MAJOR ACTION. IT DOESN'T HAVE TO SPIRAL INTO A FULL REGIONAL WAR.
WHERE IS ISRAEL DOWN? >> THANK YOU SO, ROSS MATHESON. SWITCHING FOCUS TO FRANCE.
PRESIDENT MAY KNOW MACRON IS SUCH A HOLD TALKS WITH SENIOR PARTICLE FIGURES. HE WILL BE SPEAKING WITH THE FORMER SOCIALISTS. HE PLANTS DISCUSSIONS TODAY.
HERE IS THE PROFESSOR OF ECONOMICS. YOU HELPED US UNDERSTAND MULTIPLE ACTIONS OVER MANY MANY YEARS. WHY IS THIS A SHIPPING DELAY?
ACTUALLY NAMING THE PRIME MINISTER. >> A THINK THAT IS THE QUESTION MANY FRENCHMEN AND FRENCH WOMEN ARE ASKING THEMSELVES TODAY TO BE HONEST. I THINK THEY WERE THREE OVERARCHING OBJECTIONS THAT WERE INVENTIVELY HARD TO FILL.
THE FIRST WAS GETTING A PRIME MINISTER THAT IS CENSORED, ONE THAT WOULD CREATE SOMETHING FORM OF CONSENSUS ARE BASICALLY ALLOWED MAJORITY OF MEMBERS OF THE NATIONAL ASSEMBLY NOT TO CENSURE THE GOVERNMENT. THAT HAS PROVEN HARD. I THINK THE GHOSTS OF LIZ TRUSS ARE ALL AROUND PARIS RIGHT NOW.
MICRO DID NOT WANT TO GO WITH A DANGEROUS PICK IT WOULD BE A LOT OF TENSION ON THE MARKET. IT SEEMS THAT THIS IS A RISK THAT IS IN THE MIND OF THE FRENCH PRESIDENT AND IN THE MIND OF THE OF HIS ADVISORS AND THE THIRD OBJECTIVE IS TRYING TO GET A PIC THAT WILL SHAPE THE MACRO LEGACY AND ONE THAT WILL NOT COMPLETELY UNDERMINE. IT SEEMS THAT FINDING THE RIGHT CANDIDATE FOR THESE THREE OBJECTIVES, FINDLING THESE THREE OBJECTIVES IS A VERY CHALLENGING TASK INDEED.
>> IS THERE A DANGER THAT THEY'LL HAVE A NO-CONFIDENCE VOTE? >> ABSOLUTELY. BEING ABLE TO GO BEYOND THAT NO-CONFIDENCE VOTE IS PROVEN TO BE FAR MORE DIFFICULT THAN IT WAS IN THE PAST.
IT WAS CRYSTAL CLEAR THAT FOR INSTANCE IF THE GOVERNMENT WOULD HAVE INCLUDED MINISTERS FROM THE FAR LEFT CHUCK OF THAT SOCIALIST COALITION. A LOT OF OTHER HIPPIES, MEMBERS OF NATIONAL ASSEMBLY WOULD HAVE VOTED FOR THE CENTER. IT IS ALSO CLEAR AT INTO PRESIDENT MACRON THAT THIS WAS A NONSTARTER AND THAT HE DIDN'T WANT TO HEAR IT.
FINDING A CONSENSUS IS INCREDIBLY HARD. THIS IS A SITUATION OF A FRAGMENT PROBLEM. IT IS NOT REALLY WHAT THE FRENCH HAVE BEEN USED TO.
THE FIRST POLITICAL CLASS HAS BEEN USED TO IN THE PAST. THIS IS LEARNING BY DOING. NOW IT IS REALLY A CHALLENGE OF GETTING THE THINGS DONE.
>> IS THE BIGGEST CONCERN SOCIAL STRIFE TO MARK ISN'T THE BUDGET COMING UP? >> YES. A LITTLE BIT OF BOTH.
I THINK YOU HAVE TO UNDERSTAND FRENCH SIDING AS BEING AT A POINT WHERE IT IS NOT CRYSTAL CLEAR WHAT THE SOLUTIONS ARE AND I THINK THIS REQUIRES A LOT OF PEDAGOGY AND COMMUNICATION. AND YES, THE SOCIAL PART OF THIS IS VERY IMPORTANT. I THINK THE EXPERIENCE OF PAST EUROPEAN COUNTRIES, THE U.
K. BEING ONE IS ONE THAT MACRON WANTS TO AVOID ALL COSTS. A NEW PRINT COALITION THAT WILL PRESERVE HIS LEGACY BUT ALSO BE MEANINGFUL GOING DOWN THE LINE.
THIS IS NOT GOING TO BE AN EASY TASK BECAUSE YOU'RE GOING TO HAVE TO COMMENCE A WIDE RANGE OF STICKERS RANGING FROM THE FRENCH POPULATION, THE LABOR UNIONS AND THE FRENCH WORKERS IN GENERAL TO FINANCIAL MARKETS TO THE BROADER POLITICAL CLASS TRANSISTOR THIS COUNTRY TOWARD REFORM AND TOWARDS A VERY HOSPITABLE BUSINESS ENVIRONMENT THAT I THINK IS A COURT THAT MY PHONE AND A WIDE RANGE OF POLITICAL ACTORS HAVE TODAY. WEST GIVEN OTHERS CONTEST, HOW DIFFICULT WILL IT BE TO BE SERVICES THAT THEY WILL BE ON THE PATH FOR FISCAL -- THAT THEY WILL REMAIN ON THE PHYSICAL PATH? >> THIS IS A STRIKING QUESTION, YES.
TO BE HONEST, IT HASN'T BEEN PART OF THE PUBLIC DEBATE IN FRANCE RIGHT NOW. THIS IS AN ONGOING MECHANISM HAPPENING IN BRUSSELS RIGHT NOW. THE FACT OF THE MATTER IS REAL DEBATE IS A VERY POLITICAL ONE RIGHT NOW.
I THINK THAT WHAT PHONE PROBABLY HAS TODAY IS THAT HE IS ABLE TO GIVE NEW MOMENTUM TO THIS POLITICAL LIFE IN FRANCE WITH THE NEW GOVERNMENT. HE MAY WANT TO WISH AWAY. AT LEAST BY HIMSELF SOMETIME.
MY FRANCE SOMETIME. TRYING TO CONVINCE A WIDE RANGE OF STAKEHOLDERS. THIS IS GOING TO BE A CONFIDENCE BUILDING MEASURE OVER TIME.
WE ARE REALLY GOING THROUGH UNPRECEDENTED TIMES. MORE ON THAT NEXT. THIS IS BLOOMBERG.
>> SHARES OF RIGHT MOVERS SURGING AS RUPERT MURDOCH'S GROUP IS CONSIDERING A 5 BILLION-DOLLAR TAKEOVER OF THE PROPERTY PORTAL. NO VERB IT HAD BEEN MADE SO FAR. THAT'S BRING IN -- LET'S BRING IN THE LATEST.
BY HAD TO LOOK TWO OR THREE TIMES. WHAT BINS THIS SO ATTRACTIVE? >> IT DOES HAVE 80% MARKET SHARE IN THE U.
K. PROPERTY LISTINGS AND THE U. K.
PROPERTY MARKET IS SHOWING SAM'S -- SIGNS OF WARMING UP. WITH ANOTHER BECCA BALINT RECUT IN PROBABLY NOVEMBER -- THINGS ARE EXPECTED TO KEEP MOVING AND IT'S ALSO JUST SOMETHING THE AUSTRALIAN COMPANY WANT TO DO, THEY WANT TO SPEND THEREFORE WILL -- EXPAND THEIR GLOBAL FOOTPRINT. QUESTION REACTION IS PRETTY STRIKING WHEN YOU LOOK AT SHAREHOLDERS.
IS THIS TO UNLOCK AND DO A KIND OF GLOBAL PLATFORM? WHAT DOES IT LOOK LIKE? >> IT IS NOT GOING DOWN TO WELL IN AUSTRALIA.
SHARES WERE DOWN BECAUSE THEY SAW YOU HAVE TO OFFER SOMETHING WHITE SUBSTANTIAL THAT REQUIRES AN EQUITY RAISE IN ORDER TO BE ABLE TO MAKE IT A DEAL. THE QUESTION IS HOW THOSE PREMIUMS WILL BE. YOU HAVE OTHER ANALYSTS SAY IT IS WORTH A BIT MORE THAN THAT.
IF THE SHARES HAVE BEEN A BIT DISCOUNTED OR DEPRESSED, THINGS ARE HOUSING UP. THIS IS MORE ATTRACTIVE. SHAREHOLDERS ARE PRETTY HAPPY WITH IT.
CONSISTENT, STEADY SHARE PRICE. YOU'LL HAVE TO TAKE THAT. >> THANK YOU SO MUCH.
THAT WAS THE LATEST ON RIGHT MOVE. PAINFUL MEASURES TO FIX BRITAIN'S PUBLIC FINANCES. SOME SENIOR LABOR PARTIES SHOULD HAVE TOLD US THEY ARE TURNED ABOUT THE GOVERNMENT'S MESSAGING.
WE WERE JUST TALKING ABOUT THIS. GOOD MORNING. IT DOES SEEM LIKE THEY'RE GOING OUT OF THEIR WAY TO SAY HOW DIFFICULT WILL THIS BUDGET ACTUALLY BE?
>> IT LOOKS LIKE IT IS SHAPING UP TO BE A PRETTY NASTY BUDGET. BUT THE ECONOMY HAS OVER PERFORMED. YOU'D EXPECT MORE REVENUES TO BE RAISED.
THERE IS A DISCONNECT THERE. OBVIOUSLY LABOR WANTS TO KITCHEN SINCE SOME OF THE PROBLEMS AT THE START AT EVERY NEW GOVERNMENT DOES. THEN IT IS ABOUT BLAME SHIFTING.
IF THEY CAN MOVE THE BLAME ONTO THE TERRIBLE INHERITANCE AS THEY CLAIM THEY'VE GOT, THEY CAN REST THE PROBLEM WITH THE FORMER CONTEMPT OF GOVERNMENT. THE MORE TAXES YOU RAISE EARLY ON, THE MORE IF THINGS DO RECOVER, THEY IMPROVE LATER DOWN THE TRACK, TO THE ELECTION, THEY CAN START CUTTING THOSE TAXES. THEY START TO LOOK LIKE THEY BOTH REPAIR THE PUBLIC FINANCES AND ECONOMY IS DOING BETTER AND THEY'RE ABLE TO GIVE THE MONEY BACK.
>> WE SEEM TO HAVE A PRETTY CLEAR IDEA WHAT'S IN THE BUDGET. THE INHERITANCE TAX. IT LOOKS LIKE A LOT OF FINANCE.
DO YOU HAVE A CLEAR IDEA OF WHAT IS COMING UP? >> THERE IS THE PRIVATE EQUITY CARRIED INTEREST. THOSE ARE IN THE MANIFESTO.
THE ONLY THING IS WE HAVE NO PLANS TO RAISE TAXES HERE AND THERE IS WHAT WE SAY. WHAT THEY DID SAY. IT LOOKS LIKE THE LIKELY ONES ARE GOING TO BE SOME REFORM OF CAPITAL GAINS TAX.
THEY ARE TINKERING AROUND INHERITANCE TAX. GOING AFTER POCKETS OF WEALTH. INCOME HAS SEEMED QUIET HAPPY INCREASES IN THE TAX RATE IN PARTICULAR.
ALSO, THE HIGHEST 45. . YOU CAN SEE THEY WOULD LET HER TARGET WEALTH RATHER THAN INCOME.
>> WILL THEY BE VERY MINDFUL AND MAKE SURE PEOPLE DON'T LEAVE THE COUNTRY SO IT IS NOT YOU PUNISHING SO PRIVATE EQUITIES DON'T RELOCATE? >> THAT IS THE BIG ISSUE. THE DISCONNECT IS WHERE THEY TALK ABOUT WANTED TO BE SUPPORTIVE OF THE WEALTH CREATORS BUT AT THE SAME TIME THEIR ACTIONS ARE SOME -- THEIR ACTIONS ARE SUGGESTING THEY ARE NOT.
ALL OF THE POLICIES ARE IN THE MANIFESTO. THEY HAVE ALL THAT. IT IS DISCOURAGING FOR DEALMAKERS.
PEOPLE IN THE CITY, PRIVATE EQUITY PEOPLE WHO MAKE A LOT OF MONEY. IT LOOKS LIKE THERE WILL BE SOME KIND OF CARVEOUT. IF YOU PUT YOUR OWN CAPITAL AT RISK, YOU MAY GET SOME REDEMPTION.
THE VAST MAJORITY OF THE PEOPLE IN THE WORLD DON'T HAVE THE CAPITAL RISK. QUICK THERE IS THIS TALK ABOUT THEM DOWNPLAYING OR MAKING A DIFFICULT BUDGET. IS THERE A DANGER THAT THE OPR COMES UP AND SAYS WILL HAVE TO FIND MORE MONEY THING YOU THINK?
CHRISTOPHER'S INTIMATION OF THAT FORECAST WHICH IS PRIVATELY LOOK TO THE GOVERNMENT, WE CONSTRUCT TO SEE THINGS COMING OUT ON JEREMY HUNT. THOSE LEAKS WERE VERY LEAKY. IT WAS A TOTAL COLANDER, WHAT WE HEARD FROM THE FORMER CHANCELLOR.
THAT SEEMS TO BE SHIPPED IN THE NARRATIVE. IF THE NARRATIVE GETS EVEN MORE BLEAK YOU CAN BASICALLY INTERPRET FROM THAT THAT THE OPR HAS SAID THERE IS LESS MONEY THAN YOU EVEN THOUGHT AVAILABLE. SO YOU WILL HAVE TO DO MORE PAINFUL THINGS.
BUT THERE ARE TRICKS THEY CAN DO. THEY CAN CHANGE THE DEBT FOR WITHIN THE PUBLIC SECTOR, DEBT FOR SCOVEL, THERE IS ALSO FIDDLING AROUND WITH BANK OF ENGLAND INTEREST ON RESERVES. THERE ARE SOME VERY TECHNICAL THINGS THEY COULD DO.
NOBODY WOULD REALLY UNDERSTAND THAT. THERE ARE WAYS TO CLAW BACK SOME MONEY >> WE WILL HAVE PLENTY MORE THROUGHOUT THE LAST COUPLE OF WEEKS. COMING UP, IT IS SEPTEMBER.
SEPTEMBER 2 TO BE PRECISE. A TREATISE POSITIONING FOR EVENTUALLY VOLATILE MONTH WE WILL PREVIEW WHAT TO EXPECT. THAT IS NEXT AND THIS IS BLOOMBERG.
♪ >> TRADERS ARE STARTING THE NEW MONTH. WAITING FOR SOME DATA THAT COULD FOR MONETARY POLICIES FOR A GLOBAL CENTRAL BANK. GOOD MORNING.
HOW ARE THE MARKETS ACTUALLY POSITIONED AHEAD OF THE JOBS DATA MARK? FRANCINE. I THINK THAT THEY ARE POSITIONED FAIRLY BALLISTIC THIS WEEK'S DATA.
IF YOU LOOK AT THE OS POCKETS, THE MARKETS ARE THINKING THERE WILL BE FOR A CUTS NOW AND THE END OF THE YEAR AND AS MANY AS NINE RECUT BY THE END OF NEXT YEAR SO THAT'S A LOT OF THE MARKETS ARE PRICING IN. FOR THE MARKETS TO BE PROVEN RIGHT AT THINK THE EMPLOYMENT IT WILL BE CRUCIAL AND IF THE JEALOUS RATE NUMBER -- IF IT PUSHES ABOUT 4. 3%, THERE IS A GOOD CHANCE THE FED MAY WANT TO PUSH IN BIGGER BREAKOUTS IN LINE WITH WHAT THE MARKETS ARE EXPECTING.
IF THAT NUMBER SHOWS THE MODERATION I HATE THE FEDERAL WANT TO TAKE IT IN A MEASURED SEQUENCE. THERE IS ROOM FOR CORRECTION IN THE FED FUNDS RATE WITH THE MARKETS ARE POSITIONING. IT IS A VERY BULLISH MARKET.
THERE IS ROOM FOR CONNECTION IF THE DATA PROVES TO BE -- SHOWS THAT THE ECONOMY IS STILL HOLDING A PRETTY DECENT SHAPE. >>, U. S.
EQUITY MARKETS CONTINUE TO KEEP SEARCHING? >> IT IS A FAIRLY BULLISH SCENARIO FOR THAT TO HAPPEN, FRANCINE. IF YOU LOOK AT THE MARKETS, IF YOU LOOK AT THE SMART MONEY INVESTORS LIKE WARREN BUFFETT, THEY HAVE BEEN TAKING MONEY OFF THE TABLE AND THESE ARE STOCKS THEY HAVE BEEN FLOCKED INTO FOR YEARS.
APPLE, BANK OF AMERICA, IS NOT AS THOUGH WARREN BUFFETT HAS HAD THIS MOMENT THINKING THESE JOBS ARE NO LONGER FIT, IS ABOUT VALUATIONS AND THOSE VALUATIONS ARE STRESSED. THE YIELD CURVE IS ABOUT TO WORK. AND THAT TYPICALLY HAPPENS WHEN THE ECONOMY IS ALREADY TO BE INTO A RECESSION.
ETHIC INVESTORS NEED TO BE CAUTIOUS HERE. QUICK THINKING SO MUCH FOR YOUR TERRIFIC INSIGHT. NOW BLOOMBERG MARKETS, THAT IS AHEAD AND THIS IS BLOOMBERG.
