tom: good morning, this is "bloomberg daybreak: europe." i am tom and linda. asian stocks slipped as strong u.s. business to disperse about

on the fed holding interest rates until at least december. sec approves trade products tied to ether, opening the door for a spot etf, and we are live at the g7 finance meeting in italy where ukraine's allies are wrestling over a deal to use frozen russian assets to support kyiv. we will be speaking to a secretary-general later this hour. let's check in on these markets, global stocks at bonds up for weekly declines. the good news on the data front, bad news for the markets team is a back with u.s. activity data. composite pmi, services, and manufacturing strengthening the most, composite and about two years. that led to a selloff on wall street. european futures, a losses of point five of 1%.

consumer confidence picking up for a second consecutive month in the u.k. losses across the ftse 100. s&p futures looking to modest gains after losses of yesterday. nvidia was the bright spot yesterday across the u.s. equity space with gains around 9%. let's have a look cross asset. you did see a little bit of a sell of coming through at the front end, yields on the two year at 4.92. markets price of the first cut now in december, fairly priced versus november. founded focus on the back of the consumer confidence story, 1.26 on the pound, and ether in focus. 3803, getting closer to approving spot etf's, and brent trading at $81 per barrel.

let's cross over to singapore where avril hong is standing by with a deep dive on asian markets. avril: we are seeing a lot of risk aversion, it is a doubts of rate because hitting asian equities in currencies as well. the gauge of stocks headed for its first weekly decline in five weeks, the korean won among those getting hit the hardest. hang seng leading declines, nikkei not doing much better. not helping sentiment, those china-taiwan tensions. take a look at some of the movers. yesterday it was asian chip stocks getting fuel from nvidia, and for the korean won they unveiled a package for the chip sector. today these are the biggest drag on the stock gauge. samsung, high-bandwidth memory chips failed an nvidia test due

to heat issues. it is a market samsung has been trying to catch up to its arrival sk hynix in. i want to show you what we are getting out of japan, cpi numbers in line with expectations, and it was a cooling for a second straight month. as you look at the corporate -- core print, in line with expectations and higher than the boj's target, really making the case for the boj to accelerate normalization of policy. bloomberg intelligence is a rate hike in july and another in october. that has implications for bonds in japan. this week we saw the yield on the 10 year reaching the 1% level, hovering at the highest since 2012. bond bears are really up. we are seeing a level breaching

157, really hard to fight the carry trade and higher for longer narratives after the fed. tom: thank you very much indeed, bringing us the details. fascinating stories particularly in the tech semiconductor space. u.s. pmi data for may surprising to the upside, the strong print as a spur to the fed holding rates until at least december. let's bring in garfield reynolds. is this a market are being reminded of the relative resilience of this u.s. economy? >> i think we are being reminded of the relative resilience of the u.s. economy and economies around most of the globe. we have had an understandable re-rating and the potential for

rate cuts in the u.s. and pricing 1.5 cuts in it now for 2024. that looks dangerously complacent. just when you would pricing given the data, but the fed said it would do three, so unless they say otherwise it is hard to price and only one or less. you look at u.k. cpi, even pmi in europe overnight, their inflation looks under control, that was good news on the economy and inflation, it was good news on the economy, and economies around the globe did not look like they are cracking seriously under the weight of the current elevated central bank rates, and that makes it less likely that we see a rapid move to easing, which as been the base case for investors for much of the last year. tom: really interesting to put this in the global context, not

just a u.s. story in terms of implications for central banks globally. garfield reynolds, thank you very much. to italy where a two speed global economy is overshadowing this week's g7 finance minister meeting. officials confronting the prospect of less synchronized financial policy amid relatively tepid growth. let's get more with oliver crook on the ground at the event in italy. can they g7 tap into these russian assets to support the war efforts in ukraine? this is been a debate unfolding. will they be able to access of that income to an agreement? >> that is the big project for the finance ministers here is to get the architecture in place an order for g7 leaders to sign off on it in about three weeks time. how do you monetize those assets from the russian central bank

and get them to ukraine? the debate is bent between the united states and europe. the united states once to seize underlying assets, the europe is not comfortable with that. they want to frontload the money. on the top level there has been agreement on that, but have a listen to the italian finance ministers speaking to us yesterday about hiccups. >> i have to be optimistic. it is not easy. the problem is how we are able to use the future to build a facility to ukraine, but i am sure that we are able to make some progress, and perhaps for the the next political servant there will be a resolution. >> i was surprised by his tone, the tone of skepticism. this is an event and group of

people who should be at consensus to move forward on this. if there is not resilience and will at the g7 to do it, that will be a problem for ukraine. the debate seems to be centering around what happens if the war ends in five years and you committed those russian assets, who will be on the hook for that ? in a critical moment for them to show unity in the face of this aggression by russia. tom: maybe it is a question of unity and lack of unity, the question around china, particularly when it comes to the question of trade. how is that the them likely to filter through these meetings? >> it is an interesting question. it is not technically on the agenda, but it is something janet yellen said yesterday, this is one of our priorities. we need the g7 to have a unified

front over chinese overcapacity. they are producing a huge volume of this inventory and dumping it on the market. the united states is the right of trade barriers on ev's and other things. the interesting thing is when the united states moves on this stuff it moves quickly on tariffs. where does the overcapacity go? a lot of it comes into your. this is a forum for the g7 to discuss and navigate what could be -- and this is a questionable up for ministers -- are we headed toward another trade war, and that looms large over this whole discussion here. tom: particularly with the chinese threatening their own retaliation. beautiful setting at the g7. thank you. later in the show we will go back live in italy and speak

with the secretary-general of the oecd. that interview at 645 time an -- 6:45 an the sec has opened funds for training directly in either -- ether. our senior crypto editor standing by for us. how significant is this move meeting -- paving the way to these potential ether spot etf's? >> nothing has been approved yet, but there is considerable optimism they will be approved in the u.s. soon, and that is abrupt pivot from authorities in the u.s. why is it significant? there is a first mover advantage for the issuers of these products, >> blackrock, fidelity

. let's not forget spot bitcoin etf's amassed $50 billion in assets since january and that coincided with the bitcoin rally that's all record highs in march. there is potential policy implications here, so in the debate around whether or not ether is considered a security. the sec has been ambiguous on whether he considers ether to be considered a security. some experts believe an approval for spot ether has would mean the sct -- sec cited -- a lot of cost of noncompliance. tom: that security versus commodity debate or decision will be consequential.

talk to us about the differences regionally between spot ether etf's in a jurisdiction like hong kong and those being proposed in the u.s. >> a lot of the optimism around the approval of ether uts begin on monday this week when some of the big issuers of these products remove plans to include staking in their proposed product plans, and that was seemingly to appease u.s. regulators. what is happening in on-call where etf's are already live our they are in discussion with local regulators about adding staking services to the products that they already have out on the market. that is seen as a potential way to increase demand for these products, which in hong kong have had a fairly luke warm reception so far. tom: ryan weeks on the significance of this step, an

important step by the sec into what could be total and final approvals of spot ether into gas. let's get you up to speed, 7:00 a.m. u.k. time, we will get u.k. retail sales. we will get a gauge of the strength of the u.k. consumer. 1:30 p.m. u.k. time, u.s. durable goods orders after the composite emi out of the u.s. came in much stronger than many expected yesterday. the highest in two years in fact, and at 3:00 p.m. u.k. time the university of michigan sentiment survey will come through as well to build out the picture in terms of the views on the u.s. economy. as south africa gears up for a pivotal election we will discuss it investor sentiment and why it is turning more positive.

that is next. we will also be discussing the ai led stock rally with the head of equity research at state street. how she is adjusting her portfolio in light of the gains around ai. stay with us. this is bloomberg. ♪

tom: "bloomberg daybreak: europe

-- welcome back to "bloomberg daybreak: europe." let's get to the latest around south africa, a big year for elections globally, u.k., india, the u.s., europe, but also importantly in the em space. as south africa markets are brimming with optimism as a voters get ready to cast their ballots next week. bloomberg's latest survey says people believe the recent rally has room to run. let's bring in jennifer zabasajja. how are it investor themselves heading into the selection -- this election? >> it was a different story than what we were seeing hitting up to may 29. you mentioned the survey. we are hearing a lot of investors more optimistic than they have been and saying they are overweight or neutral on

south african assets and more likely to invest in south africa than some of the other big powerhouses on the continent, kenya, nigeria, and egypt, and a lot of this is largely due to new pulling suggesting the ruling party, there is been talk about the anc losing the majority, but now some polls suggesting they still will be able to form a coalition with some of the more market friendly, business friendly parties and potentially, policy continuity, and the government can focus on some of the more structural reforms in the economy. it is interesting that many investors are telling us they see green shoots into the future. it was not the story a few months ago. tom: it seems to be quite the about-face, but you are unpacking the rationale. what are the different political

combinations that would be most favorable for seen as most favorable by investors and for the south african economy? jennifer: the real concern was some of the more populist left-leaning parties would get more of the majority and the ruling anc would have to form some sort of coalition and have to concede to some demands from some of these parties, but potentially now the polling is looking like the anc forming a coalition with the democratic alliance or even the ifp, which is a more business friendly, market friendly party, and potentially that means the anc can continue with policy continuity. investors in the survey said a lot of these fiscal reforms gives them optimism, and potentially that means we will see a lot of local assets over

performing. we have seen the rand and local stocks and bonds performing quite well, but the one caveat is that investors are saying these more favorable coalitions would be beneficial to the economy, but that is contingent on the government stepping in and instituting new reforms moving forward. it will be short-lived they told us if there are not some changes made especially to the economy. tom: jennifer zabasajja in johannesburg on the market positioning around this important vote that kicks off next week. jennifer will be reporting. it did not miss special coverage of the south african elections on bloomberg tv, online, and on the terminal. coming up, is net zero by 2050 still possible? we will hear from bloomberg and

ft on the real cost of climate goals. that is next. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." a new bloomberg report shows global climate goals are becoming harder to achieve the longer the world remains addicted to fossil fuels. companies will need to spend an extra$34 trillion on the clean energy transition between now and 2050 two reach net zero emissions. that's bring in our correspondent. considering these numbers, a key question is is net zero by 2050

still within reach? >> yes, we think so, but it will be challenging. last year emissions increase globally, but we think we may know reach a turning point thanks to china, which is the largest emitter but the biggest investor in renewables. the country built almost 300 gigawatts of renewables, almost as much as the entire world combined, and europe and the united states are continuing to reduce their emissions, so if other countries join these countries we think it is possible, it is challenging, and we need to do a lot to get on track. tom: you talk about the fact that this is a critical decade, so before we get to 2050 we have to make real progress by 2030. what needs to be done by governments and companies around

the world by 2030 to get us on the right track then? >> there are two main things. the first are renewables and the second our electrification. those are technologies available today and they are in many cases even cheaper than continuing to invest in fossil fuels. we need to triple renewables by 2030 and need another tripling to 2050, and it is cheaper to do that then build coal and gas plants. the same is true of the road sector. we need to ramp up the production of electric vehicles, and by 2034 we need to phase out the sale of gasoline and diesel cars. think of infrastructure, buildings, there are a lot of things we can do in this decade and it makes sense economically. tom: a lot of those policies being debated at elections around the world. talk to us about the cost, the

ticket price, a staggering $34 trillion. >> the $34 trillion are in addition to the base case. in comparison, that is quite a bit more, but in total it is $21 5 trillion, just under 5% of world gdp. that is a lot, but compared to what we need to do, what is the challenge ahead we think it is necessary. a lot of this goes into the power sector. we need a monitor bridge that can handle renewables. we need to invest in industry to produce clean steel, but we also need consumers to switch from natural - -petrol cars to electric vehicles, so there is a big task i had four households

and businesses to switch to clean energy. tom: really fascinating, head of energy and economics at what needs to be done to get to those crucial goals are around renewables. and removing carbon from our ecosystem. if you would like to hear more, download the switched on broadcast on apple or wherever you get your podcast. when people come, they say they've tried

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tom: good morning, this is bloomberg daybreak: europe. these are the stories that set your agenda. asian stocks have strong u.s.

business data spurs bets on the fed holding until at least december. a rocketing price tag for spacex. bloomberg sources say elon musk company is looking to sell existing shares valuing spacex at 200 billion dollars. we are live at the g7 finance ministers meeting in italy where ukraine's allies are wrestling over a deal to use frozen russian assets to support kyiv. we will speak to the secretary-general later this hour. let's check on these markets then, set for losses on global stocks and bonds this week. yes, the optimism coming through for nvidia, lifting that stock price yesterday but not more broadly the u.s. equity space, which ended in the red on concerns about stronger data coming through. further resilience for the u.s. economy. european futures looking at losses. the ftse 100 pointing down by 71 points, off by 9/10 of a

percent. setting itself up for a big hit. s&p futures are pointing to modest gains after the losses of yesterday. they are back below that 5003 hundred level on the s&p. nasdaq futures pointing to modest gains. currently flagged a 18,700 40. let's flip the board and look across assets in the treasury space. you did see yields up on the back of that improving data picture around the u.s.. expectations now, the fed may not cut until december. 492 on the u.s. two-year, getting close to the 5% level. the pound at 126 closing in on 127. u.k. consumer confidence picking up here in the u.k. for a second consecutive month. politics is now firmly in focus as we count down to that july the fourth election. either getting a lift up. some important moves coming through from the sec. the regulators in the u.s. who could get closer to approving spot ether ets.

brent, $81 a barrel, softer by attempt of a percent but it's been a challenging week for the oil space. on the back of an inventory buildup on the u.s.. now to the data in the market reaction. buoyant u.s. business activity in a tight labor market have sparked traders to push back the timing of fed cuts until the end of this year. not fully priced by these markets until december. it was just november yesterday. just one day we move from november to december in the fed with the first cut coming through in terms of market expectations. let's bring in maria, head of equity research at state street. maria, good morning, thank you for joining us. how difficult is it now to put a pin in the fed and its first cut ? how much confidence or lack of confidence do you have in terms of this question? >> good morning, tom, good morning, everyone. i think that's a really good question. when the fed can cut depends on how strong u.s. data is in u.s.

data is to two years. monday we get strong data, one day we get weak data. i think that very much kind of reflects a very different experience many companies and consumers have from tighter financial conditions. if you are small, midsize, corporate, if you are lower income consumer, medium income consumer, higher interest rate really squeezes you. if you are a large corporate with huge power -- pile of cash for the balance sheet or wealthy consumer with lots of savings, higher interest rates are benefiting you and that's what we're seeing right now on the economy. part of the economy is doing well, part of the economy is doing poorly. so we have this data ping-pong. monday is stronger, one day it's weaker. and that's a real problem. tom: i'm going to have to lift that line from you. data ping-pong is very apt. and i like the way you flame it

-- frame it. two-tier economic story evolving in the u.s.. where does that story lead you in terms of your views, and this is your view that ultimately you get an economic crash in the u.s., that's your take. how do you go from two-tier economic story to a crash in the u.s. and what is the time frame they've got around that? >> the way i'm thinking about the economy as if it's difficult for central banks to cut policies, if they are having this higher for longer. they're part of the economy that's under stress already said that they get even more stress. if you're thinking about a lower end consumer, lower income consumer, those people are financing themselves by credit cards at 20 plus percent interest rates. for them, delaying interest rate cuts is really, really painful. for smaller corporate setting to refinance. delay of interest cuts is really painful.

that's why every month you push it back it's having real economic impact. tom: are we underestimating, are the markets underestimating the inflationary impacts of stepped up spending, particularly around infrastructure? >> it's really, really fascinating topic because i think up until maybe six months ago, maybe three months ago, we thought about ai is really exciting technology, lots of potential, and are we saw was an equity market with multiple expansion. now we are beginning to see a real economic impact. now we are beginning to see companies making profit -- profits. semiconductor, absolutely. we see softer companies making money. we see energy companies making money. so becoming real economic powers. so that's already becoming super interesting for equity.

it's not just about multiples, it's about where profits are getting stronger and stronger. to me, that has really underlined the strength. tom: where within the space, where within that ai stacked you have a preference? where are the outsized opportunities, is it on the infrastructure play, utilities play, targeting the models in the companies behind it, where you focus? >> for now, our general preferences large-cap tech. that's the sector i've liked for many years and it has proven itself, reinventing itself playing new ways to make money. so i was incredibly happy to see software companies already making money from ai. so that's a really interesting story for me. in terms of infrastructure.

i do worry about utilities. of course i have this huge boost in demand, but that requires a lot of investments and that has not happened yet. tech space, software space, hardware space, this investment has happened in companies reaping benefits. electricity has huge demand requiring extra. that needs to happen. tom: talk to us about your preference, u.s. versus europe. arguably the economic recovery is coming through here in europe. you have a cut coming through in june, there has been letty -- little pushback from ecb officials and some of the metrics are starting to look a little bit more favorable. i prefer u.s. over europe with the valuation story? >> this is a really important question. a lot of people ask us about this preference. as we discussed for us, a recession is coming, potentially. if that's true, earnings are

contracting, and you really want to stick with companies in regions where profitability could be a little bit better, where you could defend your profits, defend your margins and that's not europe, europe is really cyclical, recessions are coming and it's problematic. europe is improving, but for much lower rates. it's really level versus change. european companies are low class profitable's. indeed, if we go into recession, it's not variations that will matter, its earning stability and earning quality and that is 100% real. tom: thank you very much for your take on these markets and how to position, head of equity research at state street. switching focus, bloomberg's sub -- bloomberg says spacex has initiated talks about selling existing shares that could price

around roughly $200 billion. let's bring in our bloomberg anchor with the details. what's the numbers on spacex? >> 200 billion dollars is not chump change, but it is a march different from that 180 billion dollar valuation just six months ago. elon musk, spacex do these tender offers every six months or so, they call it liquidity rounds, for investors and employees, that's really how you get some of the shares of spacex. you have to be an employee. elon musk says this is not a capital raise, but what it does show is that this company is only getting bigger and bigger as shown by these low liquidity rounds. tom: they are able to do things other companies are unable to do. we will see how deep that motor is going forward. his being an employee the easiest way. i have to get a job at spacex to get some equity? i'm out the door, give me half an hour. how did you get that stake in a company like spacex? kriti: it's very tightly held.

these tender offers are 108 to $110. that's affordable for a lot of folks who are looking at buying just a single share. that being said, you have to have a earned income over 200,000 for two consecutive years or net worth of a million dollars. already at the beginning the standard is quite high. if you do make that threshold, you have to be vetted by the company. space x can still say no. there's a background check. or, you could find an individual who holds that and sell it on private market, there was a joke on the terminal you could do it via linkedin, put out your bids, fine individual investors and begged them to sell their shares. space x cannot say no. they're careful about who they want. the easiest way to do it would be through a specialized vehicle. a fund, space fund, mutual fund, there's a couple that actively invest in companies like openai or space x, that would be the easiest way to go if you don't want to get a job. tom: that maps out the game

plan. we need to talk you about your 10% stake at some point. markets today anchor on the story around space x and that valuation. talking of elon musk, wearing his tesla ceo hat. he has multiple hats. what say if he still committed to a low cost ev. he was pressed on the issue during a conference in paris telling one reporter it was difficult to answer such questions. he later said he did not think the subject would be of interest to the audience. he also says he doesn't want either tariffs or tax incentives for ev's. china has carried out its most expensive military drills and a real -- in a year around taiwan. ramping up pressure just days after he took over as president. the news agency reporting that the drills were intended to punish separatist acts. beijing has sharply criticized the inaugural address he said in

a dangerous signal of seeking independence. coming up we will speak with the secretary general of the oecd. that interview up next live from italy where g7's finance chief and central bankers are gathered for that annual meeting. we are live on the ground at that interview. stay with us. this is bloomberg. ♪

>> the g7 is collectively recognize the need to protect our workers and businesses from unfair practices and overcapacity threatens the viability of firms around the world, including emerging markets. i believe it also poses the challenge to china's growth. tom: that of course with u.s.

treasury secretary janet yellen speaking at the g7 on unfair trade practices, alleged, and challenges to china's growth. oliver crook is also on the ground and stresses italy where the meeting of course is taking place. not only will he cover the story for us throughout the day. standing by with any special guest for us, kick things off. oliver: as you said, we just are janet yellen. one of her priorities to stress and speak in the g7 is this priority of china and unfair trade practices and something she wants to build unity around within the group. we are very pleased to be kicking off the coverage with the secretary general of the oecd and joins us here in italy. the big overtone, quiet message is the potential of are we walking towards a trade war? we see in the biden administration put up the ev tariffs, we expect the same from the european union, how high do

you rate that is a risk for the global economy right now? >> for the global economy one of our objectors should be to reinvigorate global trade. and yes we need to ensure that we can have open markets, fair trade, free trade and we need to ensure that we can have resilient supply chains that we address some of the social and environmental challenges associated with current policy settings. but what we should be doing is improving their way globalization is working on delivering for people in the way open markets and free trade is operating. we have to be careful not to throw the baby out with the bathwater. oliver: an up -- among population you have this waning belief in the globalization, even within politicians who historically have been more globalization have put up more protection. how do you make that argument? >> the protection is a fragmentation decoupling will make us all poor. there's no question. we need to lower growth, lower

incomes and drive up costs. consumers will pay more in businesses will earn less. we just have to make sure that we calibrate any policy measures in the space carefully. that we do you risk our supply chains, that we ensure we have supply chains, but that we continue to benefit them all at the upside of open markets and free trade can help deliver to people all around the world. oliver: if we fail to do so, what are the implications for growth at inflation? legs as i mentioned earlier, if we enter a new area of protectionism and enter fragmentation and decoupling, it will lead to lower incomes around the world, and it will lead to higher costs for consumers and higher input costs for business all around the world. >> one of the places there is a key function is discussion around taxation. we talked about taxing the tech giants. do you think we will get a

multilateral agreement next month? >> the first part is the global minimum tax for international tax reform agenda is now reality. by the end of the year we will have 90% of in scope businesses around the world that will be subject to the tax debt. that is a very important step forward for ensuring we can have a global level playing field for internationally operating businesses. we are the location of taxing rights and we will continue to work of achieving of agreement of the tax and signing before that multilateral convention by the end of june. oliver: one of the conversations that has been promoted here by some of the members and rejected by others is that global billionaire tax. do you think the oecd might be an appropriate place to have that discussion in terms of possible framework to push that conversation forward? >> we focus on incrementing and successfully landing the tubular tax or foreign that was reached some two years ago. and of course in relation to the

proposal by the brazilian presidency in relation to this international wealth tax are continuing and we will continue to be a part of that conversation. oliver: there is geopolitical diversion. we are also seeing great divergence between the united states and many other parts of the united states, which is having large applications for a number of currencies and other factors. how do you rate that risk to the markets with that diversion between the fed and others? quakes all around the world across all major economies, inflation is heading down. of course, there are divergences across different economies, which means t there will be a different monetary policy. but overall, overwhelmingly, the monetary policy settings are restrictive for some time. it doesn't mean there won't be some adjustments in some jurisdictions. but we will see restrictive monetary policy all around for some time to come. oliver: within the g7 but more broadly, you have warned about

the wall of maturities that is approaching. how do you rate the risk of debt and how do you see it playing out in markets? >> that is one of the big risks over the next two or three years. the debt issuance has to be refinanced. we refinanced -- we refinance it higher and the challenges here. we have been warning that there is a real need to rebuild fiscal resilience and to have credible medium-term strategies in place to address the debt challenge. oliver: when you look at the risk of lists around the road, inflation, growth, geopolitical, what worries you the most? >> there is a risk of inflation that proves to be more sticky than anticipated. but conversely, there is a risk that monetary policy measures will overshoot and that we end up with having to harden impact, and that is something that remains challenging moving forward.

but then the geopolitical risk is a very significant risk, it's very hard to see how you can take effective action depending on where you are in the world. you are in the receiving end and very significant implications. depending on what happens in the middle east, we could see another supply -- surprise shock closing in and for -- causing an inflationary increase. there are things that are not immediately under the direct control of countries and other parts of the world. oliver: the secretary general of the ocd kicking off our coverage here in italy for the g7 finance minister central bankers talking about globalization, can we reinvigorate that conversation and put forward the benefits, which is what their priority is, to lower prices and higher growth rate for a global economy. tom: oliver crook on the ground for us in italy there with the oecd secretary-general at that

g7 meeting in italy. there will be plenty more interviews that oliver crook will bring to us from that g7 today, including the european economy commissioner. that will be an interesting one. plus, this will be crucial, and exclusive conversation with the president and ecb governing council member. really fascinating as we expect that cut from ecb in june. stay with us. this is bloomberg. ♪

tom: welcome back, happy friday. here's the good news and bad news for the markets. we focus on the pmi, trump is it data came out. manufacturing and service out of the u.s. for the month of may. on one line, this is good story. it's reminding us of the strength of the u.s. economy. the white line is compass a and

you could see a edging higher. services that is really showing the strength. manufacturing got a pick up. this is the biggest jump for compass it we've seen in about two years. the yellow line is services. really important, input prices and prices charge, both edging up, 54 point four on compass it, well into expansionary territory. raising questions, reinforcing the view we got from the fed minutes that they do need to be higher for longer because it will take that much more time to get to the 2% target given the strength coming through on some of these economic data points out of the u.s.. i think this is a relevant question as to whether or not the spending around ai and nvidia will be stimulative and add more inflationary pressure for the u.s. economy. here some size and scope around the size of this company now in terms of market cap. 2.5 children, it rallied yesterday, up 100 -- 100% year-to-date. up 70% over the last 12 months. you've got microsoft, apple and

nvidia in terms of market cap. this is bigger then the entire stock exchanges of australia, south korea and yes, germany. let's flip the board and see what this means. he founded the company in 1993, 91 billion u.s. dollars, 17th on the bloomberg billion dollar index. he's got more wealth than individual members of the walton family. he has a 3.5% stake in this company and he is sitting pretty right now. a lot more coming up, markets today, stay with us. this is bloomberg. ♪

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anna: good morning, i am anner edwards. strong u.s. data and bets on the fed holding interest rates. as the u.k. election campaign kicks off, consumer confidence