>> good morning. i am tom mackenzie in london. these are the stories that set your agenda. stocks edge higher ahead of a flurry of global inflation reports set to actions of central banks. tensions ratcheting higher in the middle east following the killing of an egyptian soldier in a clash with israeli troops as prime minister netanyahu calls a deadly airstrike on a gaza refugee camp a tragic mistake. china stepping up support for the battered housing market, easing curbs in the shanghai market as the country also ramps up spending on ships. let's check in on these markets. modest gains coming through for global equities. futures in europe pointing modestly high. it is a major week for the data, and particularly with a lens on how inflation and that story is evolving. out of the u.s., the fed's

favorite pce indicator expects to remain in line with previous months. of course, data on inflation out of the euro zone but also australia and japan. the commodities sector is getting a lift. we will unpack that story for you today, the linkages to the chinese real estate market. ftse futures up. s&p futures pointing to gains of. nasdaq futures also pointing up. let's look across asset. we've been hearing from fed officials, the rest of messed their says she wants to see more details in terms of the communications coming from fed speak in tokyo. we also hear from michelle bowman saying it is important to continue shrinking the fed's balance sheet. we check it on the two-year, 4.93. not far away from the 5% level. not a lot of movement across the

treasury curve. euro-dollar, bit of a lift. the bloomberg dollar index is softer in the session. euro-dollar at 1.08. copper getting a lift on expectations there may be more demand coming from china. not back above that 11,000 record level a week ago. gaining 1.8% so far in the session. brent crude, $83 a barrel. opec-plus meeting on sunday will be consequential. avril hong is hanging by with a check of the asian markets. avril: we are seeing a bit of a sideways trade and most of the equity benchmarks, with an eye on friday where we will get the fed's preferred gauge on inflation. we are seeing some positive news lines in the sense of the property sector, shanghai easing the homebuying curbs. the major state banks saying they will invest in their chip

fund, account for a third of the $47 billion that are in play for some of these domestic chipmaking companies. so, it it is helping to outperform today. let's take you to what other stocks we are keeping a close eye on. it is those news lines that are the market movers. the chip making stocks in china are extending gains today, but we are seeing a bit of a diversion performance among the chinese property names. the ones that have operations in shanghai are benefiting, but the ones elsewhere not so much. it looks like more needs to be done to convince investors that these property sector woes are going to be solved somehow. let's take you to what we are seeing in japan, as we have the services ppi shooting up. that came in more than expectations as well. the sense you get about how inflation is broadening out,

making the case for the boj to hike rates yet again. we are seeing that reflected across assets. it is the value related names, your materials, banks that are firm. we are seeing the ones that benefit from cheap yen, declining today. the likes of toyota. the yield on the 10 year sitting above 1%. dollar-yen pulling full their way from 1.57. tom: avril with the asian market check. thank you very much. tensions ratcheting high once again in the middle east after an egyptian soldier was killed in a clash with israeli forces at the rafah border crossing. it follows israel's deadly airstrike on a refugee camp which the prime minister described as a tragic mistake. for more on this story, let's go to our bloomberg horizons anchor in dubai. what is the international

reaction, what has it been to the latest events in rafah? >> joumanna: the israeli as strikes in rafah sunday killed 45 palestinians. many graphic images of people being engulfed in flames. israel were quick to say the attack was based on precise intelligence and they had killed two senior officials from hamas. of course, the outcry from the international community came very quickly. we heard from qatar first, a very important country in terms of the mediation talks taking place between israel and hamas. saying the bombing will complicate these ongoing mediation efforts and hinder looking for an agreement on a cease fire. we heard commentary from saudi arabia, condemning the attacks. uae as well, they signed the abraham accords with israel a couple years ago, so technically they are ready state of normalization. beyond that, we want to look at

some of the words used by european leaders. president macron expressing outrage by these strikes, saying these operations must up. the eu also saying he was horrified about what happened. the u.s. saying they were very disappointed by these heartbreaking scenes. it is noteworthy that later in the afternoon, prime minister netanyahu said the israeli strike was a tragic mistake, that they are investigating. the backdrop is that on friday, the icj issued a ruling saying israel has to hold all military operations. they did not listen. tom: yeah, the response from french president macron was particularly noteworthy. when it comes to those talks, and you noted it, in terms of the role of qatar, if they do go forward around a potential truce between hamas and israel, to what extent does that make that evermore complicated? joumanna: yes, you have to look

at the two incidents that have happened the last 24 hours. it is not just the attacks on the rafah camp, but also it incident on the egypt border where one a gypsy and military person was killed -- one a egyptian military person was killed. this is significant because israel and egypt had calmed hostilities. the qatari prime minister, when we spoke to him back at the qatar economic forum, he said all of these talks begin put on hold and enter into rafah is a redline for those talks to continue. it seemed like a bit of progress was made the last couple of weeks. the bigger picture is that hamas officials are calling for a lasting truce and the withdrawal of israeli forces. israel says those terms are

unacceptable to them, so there's still a lot of daylight between the two sides. tom: ok, joumanna, thank you very much. with the latest out of the region. now to macro policy, central bank policy. loretta mester saying the u.s. central bank should consider ways to better communicate to the public how economic conditions will affect future policy decisions. that includes adding more detail to the fed's post meeting policy statement and to economic forecast. i am joined by mary former markets live team. also hearing from michelle bowman that the continued qe operation should continue to proceed. how should markets interpret what we've been hearing from fed officials as we try to get a clearer picture as to when they will start cutting and the role of the balance sheet? mary: yeah, there is still no clarity on when we are going to see a commencement of the easing

cycle. that has been very clear from a lot of the statements. what was interesting was how loretta mester was discussing the fact we were looking at ways to communicate better with the market because that is something probably the market is really looking for, especially at a time when the fed is just explaining they are going to be very data dependent. they will keep rates higher for longer. of course, any clearance on forward guidance, so to speak, and just clarity of where they are headed would be very much welcomed by investors. however, it is a little difficult when you have inflation as sticky as it has been and they are not progressing on their inflation target, because we still have to remember where the dual mandate stands. in the meantime, they will continue running off -- reducing the size of the balance sheet. that is still a form of tightening, which obviously will keep investors on edge. tom: we are also getting lines

from the ecb as well. most recently the last few minutes, talking about asset purchases from the european central bank, the targeted long-term refinancing operations. saying asset purchase should remain part of the talk for the ecb, but also saying central banks must be careful when the use qe outside of crises. this coming from suggestions that july should not be taken off the table in terms of rate cuts. a more hawkish member of the ecb suggesting july should be taken off. there is dispute in terms of the sequencing of cuts from the ecb. where do we stand? do we have more clarity? the sequencing question seems to be live for the ecb. mary: yeah, it is very clear from a lot of the comments from the ecb that there's a lot of discussion and there's a lot of different converging -- diverging opinions on where rates should be headed and what

is the trajectory of rates going forward. what villeroy mentioned, we could see consecutive rate cuts which would be very positive for european stocks, especially at a time when you were getting that some of the activity data is actually improving. if you get a combination of activity data improving, plus easing monetary policy, this is a really conducive environment for european stocks. however, the main thing here and especially to convince the hawkish camp within the ecb is that continued progress on inflation. that is when you will see this, around. yes, june is fully baked in but it is still unclear how the trajectory for the ecb goes in the coming months. tom: ok, mary nicola, thank you for the latest in terms of how markets might be interpreting these comments from the fed and the ecb. here's what else to be thinking about, the day ahead. the eu foreign affairs council

meeting will be concluding. we will be looking for any lines when it comes to the question of ukraine and continued support. on the central bank policy question, the ecb will be speaking alongside from the netherlands. and the fed's neel kashkari. and number of speakers from the ecb and federal reserve to tune into. today is the day we get to eplus one when it comes to trading. a major overhaul bringing a back to the 1920's in terms of when you resolve these trades. just one day. good have consequences for foreign investors in u.s. assets. we continue to bring you the details on that story. a major one for these u.s. markets. coming up, on the politics of emerging markets in south africa, citizens enjoying a rare streak of uninterrupted electricity. yes, it has been rare for citizens of south africa. we will take a look at why this has drawn suspicion ahead of

wednesday's crucial election for that country. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe.

happy tuesday. south africa is enjoying a rare streak of an interrupted electricity before wednesday's general election. the ruling anc has been successful in keeping the lights on for more than 50 days with this is drawing more suspicion then praise. jennifer reports from cape town. jennifer: south africans have been used to this. dinner by candlelight, pulling up to traffic lights that go dark all due to frequent electricity cuts that have disrupted lives, impacting economic growth and prompting criticism from mining companies to retailers. just last year, the power utility company could only keep the lights on for the equivalent of 82 days. but with an election on the horizon, south africans have been enjoying a rare streak of uninterrupted electricity supply. opposition parties have used the power crisis as fodder in the run-up to the poll, and voters have become suspicious as to

what lies behind the sudden recovery. nearly two thirds of south african said they would consider not voting for the ruling anc because of power cuts. perhaps it is no surprise that the government is trumpeting this winning streak. but, the improvements have come at an environmental cost. the state has quadrupled the amount it spends on diesel to run emergency power generators. still though, the government insists the improvements are due to increased in green power, including solar through public-private partnership. what i haven't said it for how long the lights will stay on after the election. tom: jennifer reporting there. we have plenty more coming up, including keeping across these markets. a big week in terms of the inflation data and the focus of commodities. more supportive measures from china on the property sector. stay with us. this is bloomberg. ♪

tom: welcome back. the philippines first major storm of the year has reportedly left left. the philippine daily inquirer said an infant and two others died after they were hit by falling trees. the typhoon who is expected to lose philippine waters on thursday before moving to the south of japan. much of south and southeast asia have been sweltering under a severe heat wave, one that has caused power outages and death across the region. it is a problem aggravated by a changing climate and poor urban design. paul allen has more.

paul: for two weeks now, the 15 million residents have been baking in a heat wave. temperatures in parts of pakistan have been nudging 50 degrees celsius, 122 degrees fahrenheit. surrounded by concrete which radiates heat, it has become a giant oven. >> basically, we have turned karachi into a concrete jungle. green cover is hardly 5%. paul: hospitals have been treating patients for heatstroke, keeping them cool made more difficult by frequent power outages. it is a crisis that ignores borders and neighbor india, rivers are dry, wells are running on empty, and farmland is parched. the only point in pumping this well is to illustrate how nothing comes out of it. a typical farmworker here earns about four dollars per day. at the moment, all they can do is helplessly watch as crops

die. >> i will not allow my children to join this profession because i believe farming cannot be enough for our survival. paul: the brutal conditions are being felt and must've southeast asia as well. rice planting in vietnam and thailand usually starts in may but water storage is are selling that and part of a long-term trend. >> the temperature will be increased around one to two degrees celsius, the rice production drops up to 13%. thailand will be exporting less amount of food for the market. that will have the implication to the global security. paul: india, pakistan, thailand and vietnam are the world's top four rice exporters. the part of this world dodging the heatwave now may not dodge the consequences of it. paul allen, bloomberg.

tom: let's check in on the commodities markets. part down to the softer u.s. dollar, part is down to idiosyncratic stories around the demand picture. we start with brent crude. 83.26, up .2%. last week was the worst week in terms of oil prices. oils down last week the most in about four weeks. opec-plus meeting is on sunday, likely to be consequential. the summer driving season driving up. in terms of the dement out of the u.s. remains important, and we look at the inventory buildup. crude up .2% so far in the session. softer dollars also a factor. the focus switching to more measures coming out of china. it seems to happen on a daily, if not weekly basis. support coming throughout of shanghai and that in itself is lifting demand for the likes of

iron ore, expected demand, and copper prices getting a boost. up almost 2% on copper, having crossed 11,000, the record high we saw two weeks ago. getting a lift in the session of close to 2%. we will be watching the miners. the ftse 100 here. check that on the commodities space, getting a lift so far. softer dollar but the demand picture evolving and taking shape. these are the stories making news in the day this tuesday. agreeing to buy german lender hauck and aufhauser for 672 million euros, expending the dutch company's reach and wealth management. abn amro's private banking arm will add 26 billion euros in assets under management and 2 billion euros in loans after the acquisition. that will bring combined assets to around 70 billion euros.

in the auto space, porsche is in talks with chinese dealers to smooth out relations. that comes as weaker electric vehicle sales force the auto industry to rethink the transition away from combustion engine cars. chinese media reporting that some dealers in china are now asking for compensation for selling ev's at a loss, and have also objected to this year's sales targets. stellantis has proposed building two more hybrid vehicles in italy. it is part of the carmakers efforts to appease local politicians as the company moves some production to lower-cost countries. the manufacturing assembles hybrid versions of a jeep model in southern italy and the fiat 500 at another plant. to thinking, -- banking, ubs says most of the job cuts in asia are over as it nears its historic merger with credit

suisse. the asia-pacific president told us the takeover is due to officially close this week. he spoke with us exclusively at the ubs asian investment conference in hong kong. take a listen. >> we have optimized most of the positions, both in terms of business and the geography itself. the cyclical trends, lines of business as well as the geography. for all of that, we are in 13 locations. tom: that was ubs' asia pacific president speaking to us. back to the china property story. it is one of the threads tying into the commodities level so far in the session. further measures coming through for the city of shanghai, the financial hub of china. a reduction in the downpayments that citizens and residents of shanghai now have to put down if

they are buying a property. 20% is the down payment for first-time buyers, 30% for second home purchases. it is a reminder of these measures that continue to come through from officials being implement it to try to put some support after property prices fell there most in over a decade in the most recent print. we continue to give across that story. rishi sunak's promise to pensioners as he tries to shore up those votes ahead of the general election july 4. more on that next. this is bloomberg. ♪

tom: good morning. this is "bloomberg daybreak europe," i'm tom mackenzie in london. stocks bridging higher ahead of a flurry of global inflation reports set to shape the actions of central banks. tensions ratcheting higher in the middle east following the killing of an egyptian soldier in a clash with israeli troops. that as prime minister benjamin netanyahu calls the deadly airstrike on a gaza refugee camp a tragic mistake. china stepping up support for the battered housing market. easing curbs in the key shanghai market. as the country also ramps up spending on semiconductors. let's check on these markets then. a big week when it comes to details around inflation with the pce index out friday in the u.s. but also inflation data out of the euro zone, japan and australia. european stocks pointing to gains of 0.2% after a modest

lift yesterday, the u.k. and u.s. back after an extended weekend. the ftse 100 looking to add nine points. commodities getting a lift. s&p futures pointing to gains of just over 0.1%. and nasdaq futures looking to add 45 points. we have been hearing from loretta mester of the fed saying we need more clarity in its communications. we will look at cross assets. the u.s. two year at 4.93, euro dollar getting a lift and brent 83.20 seven as we look ahead to the opec+ meeting on sunday. let's cross over to singapore. avril hong is standing by with a check on the asian markets. avril: we are looking at an asian market performance pretty volatile. just at the top of the hour showing you how the hang seng and hang seng tech were leading the charge. those games seem to have evaporated.

hang seng turning tail. this is coming on a day where markets are also digesting that positive news flow for the property sector, but also, for chips. you talked about investment earlier, so let's take deeper and take a look at how tech names are faring in china. it is the ai chip-related stocks we're missing on, after the state lender said they will be investing $47.5 billion in that fund that was unveiled yesterday, largest ever, this will be state banks accounting for a third of the fund. we saw yesterday that search in the stock of smic of 7% committed today not faring as well, but still green on other chipmaking stocks. let's take you to the property side of things. shanghai, tier one city, using homebuying restrictions. it sends a signal that perhaps authorities are waking up to the

importance of the real estate sector in the chinese economic recovery. it comes just after the central government relaxations allowing the cities to dictate the mortgage right. what we're seeing from shanghai is significant in that sense. if you look at what we're seeing in the stock market performance on some chinese property names, it is not quite showing up in positive sentiment. only the ones operating in shanghai that are really benefiting from this latest bit of news, tom. tom: avril hong in singapore with a check on the asian markets. more of that china story coming through for the commodities market rather than individual real estate companies, at least for now. let's get to jennifer zabasajja on the details around a major week when it comes to the vote. the general election in south africa happens tomorrow and is

expected to be the closest run election since 1994. since the end of apartheid. jen is in capetown covering all of this for us. what issues are top of mind for voters across south africa when it comes to that decision when -- wednesday? jen: it is a long list of issues. if we think about who is voting tomorrow, 28 million south africans are registered, there are 70 political parties and nine provinces brave the issues are mounting. when we think about top issues, we talk a lot about power outages, it has cost the economy more than a trillion dollars in 2023. there is also crime and corruption. we have a dilapidated port and rail infrastructure. a number of south africans are going to the polls tomorrow to deal with what has become a declining economy. not growing, there is not enough

jobs, so there is a number of issues they are going to the polls with, the question is which of these parties and leaders will be able to fulfill the long list of issues that they have in south africa? i want to bring in the guest is standing by with me. her name is amanda, she is a professor in capetown where i am, and she teaches blue science. tom was asking me about the number of issues facing south africans today. when you think about tomorrow and people going to the polls, what are they going to go for? what is the top issue? amanda: the issues around gender-based violence and reproductive rights for women for example are very important. there are 3 million more women registered voters than men. women have the power to sway an election if they vote strategically.

many of these parties don't even talk about gender-based violence which is a serious problem in south africa. jen: talk about the parties, i mentioned 70 political parties, when we think about gender-related issues, where to the parties stand? amanda: one has to look at their manifestoes and i have done that but they are gender blind. some of them vendor -- mention gender-based violence, the decriminalization, some have small sections on lgbtq rights. but the interesting thing is that the economic freedom fighters, a populist party, has the best section on gender. it talks about gender violence and reproductive rights, women's economic and tower meant -- empowerment, daycare for women and all kinds of issues that are really important. but the interesting thing is that this party, it's rhetoric,

just more than a month ago one of the mp's did not turn up at parliament because she had to care for a four month old baby and she was forced to do a public apology on a public platform. the question is what is the commitment versus what is in the manifestoes? jen: what does that mean for tomorrow potentially if we see the anc continuing to be the majority in government? amanda: if you look at the anc manifesto, it wants to implement a national strategic plan on gender-based violence and femicide. they have had time since 2018 to do that, so why is it not implemented? the anc is the only party with a 50% quota. we have 46% women in parliament. but there is very little influence in policy and lawmaking from those women representatives.

if the anc gets about 50%, we will have more of the same. jen: what is the hope? you are mentioning the millions more women who are registered to vote. could they potentially come out for been these issues they are talking about. amanda: they need to think strategically. women in the past voted on party loyalty, the majority of them, but this is an election where party loyalty is being challenged, so women have to think about issues and which party can deliver on these issues. they have to keep the political leaders accountable. you say 70 parties, only three have women leaders, so why are there so few women in leadership positions? it is time for women voters to keep parties accountable. so vote for a party that can deliver on some of these promises they make. jen: how do we see in climate numbers with men versus women turnaround?

what policies need to be implemented? amanda: we have over 30% on climate right, and the majority -- unemployment rate, and the majority you are unemployed are women, specifically also young women. so we need economic empowerment but that will go with economic growth which is low at the moment. the anc provides social grants and that helps, especially the child support grant, but we cannot indefinitely continue that. it is making people dependent on the state, so what we need is a way of empowering women economically, specifically in the rural areas. women are the visas for since -- are the subsistence farmers, so how are they supported? we have to have a wider think about what it is to empower women politically. jen: this universal health care which was passed a week ago, does that get us closer in south africa?

amanda: then we are all dependent on the public health system which is very broken at the moment. hospitals are not functioning up suddenly -- functioning optimally. so, south africans have access to public health but it needs to be repaired. the image at this point is not a solution because it will break private medicine, and we will still have problems with a public system that is broken. jen: amanda gouw, professor at stellenbosch university, thank you for your insights is morning. tom: jen zabasajja on the ground for us in capetown. a major week in terms of the election and the vote for south africa, which starts on wednesday. tomorrow more coverage from south ever coming up. we will speak to a former anc member running as an independent in the western cape. us at 7:30 u.k. time and at 9:10

we're joined by south africa's finance minister. that interview coming up as we continue to keep across this vote in south africa. in afflicted to shore up the core vote for his party, switching from south africa to the u.k., prime minister rishi sunak will promise pensioners a tax cut if the conservatives defy the odds to win the general election set for july the fourth. let's get more from u.k. correspondent lizzy burden. once again, pensioners in play for the conservative party, not the first time. what are the details around this policy? lizzy: classic for the conservative party but there is something new about why they are doing at this time. the threat for reform. this right-wing party started by nigel farage, the brexit campaigner, that is posing a threat to conservatives in this election. it is part of the reason rishi sunak has gone for july, surprising nearly everybody in

westminster. part of why over the weekend we heard calls for national service to be brought back in the u.k. to go for this older vote. this announcement is that the tax-free personal allowance for pensioners will rise with the so-called triple-lock. that is the guarantee that the state pension rises by the highest of earnings, wages and inflation, in other words, pensioners would get this tax break from a tax that conservatives hiked and labour has not yet said it won't, so it is making this appeal to the older vote because of the risk from reform. which sunak is reportedly trying to fend off in the first few weeks of the campaign, then he hopes to turn his attention to labour close down their momentum. tom: from right to left as they attempt to stop the bleed in poll numbers. when it comes to the business

community, a bit of a boost for labour. a number of name signing a letter saying they would support a labour government. lizzy: dozens of leaders in this letter in the times of london this morning. we have been speaking to them on bloomberg about what they want from a labour government, which the polls say we are about to get. keir starmer the opposition leader has been on the smoked salmon's grandma legs offensive wooing the city, just like tony blair did in the run-up, it was called the prawn cocktail offensive back then. it is significant because not only to business leaders usually try to be neutral in elections, some of these names used to back the conservatives, and switched to labour. the chancellor jeremy hunt and his advisers are known to be warning businesses about what they say is a move to french-style workers' rights policies from labour and that will come under question. we will speak to jonathan reynolds, the shadows secretary of state for business and trade,

the man who would be the business secretary of the polls are right from july the fifth, it will be interesting to ask him how they are planning to balance workers' rights and the interests of business in their pursuit to grow the economy. the shadow chancellor rachel reeves expects to give a speech today on how a labour government would be the path to growth. tom: how were prawn cocktails ever a thing? lizzy: at this time in the morning, i don't want to think about prawn cocktail. tom: our u.k. correspondent who will speak with that u.k. shadow secretary of state for trade, so do tonight and for that interview. there is looking more coming up including that conversation. we continue to preview the inflation data out of the u.s. a big one in terms of how that could change and shape the views of the federal reserve. stay with us. this is bloomberg. ♪

it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

tom: welcome back to "bloomberg daybreak europe." happy tuesday. let's check in, we will give you a preview of the pce indicator. the index is coming out later this week. we know it is the fed's preferred gauge, their favorite model in terms of how they think about the evolution of inflation in the u.s. momentum expected to stay well above that 2% handle my year on year expected to come in at 2.7 percent, this is the personal consumption expenditures index. month on month for the month of april is expected to come in tick up by 0.3%, effectively unchanged as a forecast, month on month and year on year, but that will be taken as a mother

j -- modest positive for the fed who have seen they want more progress to get towards that 2% target. that is giving you an indication of how this has evolved. but did you come in unchanged one that crosses on friday. the fed's response to that will be important. when it comes to that fed response, it is the yield differential that continues to put pressure on the japanese yen, even as japan talks about having the space, and we heard this from the boj over the weekend, to gradually increase interest rates currently at 0% in japan. the boj has that space to gradually increase interest rates, but you can see that differential, the widening differential is now the yellow line in terms of the rate differential between japan and the u.s., and until the u.s. was significantly lower on rates, this is the argument from many, you would inspect the pressure on the yen will continue.

we will get tokyo cpi later this week. inflation out of the japanese catalyst that could be important in terms of forming a view on the boj. the governor and other officials suggested they have made significant progress on that 2% target around japan. that did print worth -- did print worth scrutinizing. stay with us. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak europe." french president emmanuel macron says the eu must stop being naive in the face of growing competition from the u.s. and china. during a visit to germany, he repeated calls for a bi-european strategy in key sectors like

defense. joining me now is oliver crook. scholz and macron, to what extent are they on the same page? >> this is the big question before the two leaders of the biggest economies within europe. the first state visit in 24 years is meant to promote. it is the pre-election campaign by scholz and macron saying what they want to set up in the next five years of the eu term. the focus is on the strategic economy of europe paying for its own defense systems. and it is really not short on ambition. they are covering things from quantum computing to ai to defense, the green transition, so not short on ambition the question is how do you get there? they want to cut bureaucracy, boost the single market and this topic of the capital markets union keeps coming up, this is what they are pushing right now. they hope this could unleash huge volumes of investment and great american style capital market spray the best thing, tom, is that it is free.

you don't have to raise joint debt. the main issue is that it is intensely boring and convoluted. for a lot of people, it is hard to get their heads around it and make progress and the real price it costs is political will. the last 10 years this is been a topic, they have not been able to achieve it. tom: you comprehensively failed to make that forming. i am engaged. zelenskyy is on the ground, clearly pushing for further aid, what is he hoping to leave with? >> he was in spain. he will be in belgium and portugal today. what he has walked away from with the spanish visit was a pledge of a billion euros of military hardware, everything from patriot missiles to ammunition. also 19 leopard tanks, some of those tanks and ammunition could be delivered by the end of june, and these bilateral within europe and ukraine agreements where they are giving money

directly to ukraine are key because the $6.5 billion fund that is supposed to come from the eu to ukraine is being blocked by hungary. we talk about russian assets and the ambition of the g7 to trump proof that aid, increasingly, you have to orban proof money from europe. tom: anger are on role hungary is playing. we go back to discussions around defense. is there anything around air defense coming out? >> according to people familiar, we have had reporting that they want to put forward a new air defense strategy. there is the one that exists right now. they are not as keen on it, the french, because it has components from the israeli hardware and the american hardware. this is all about strategic economy for europe and making its own defense and buying its

own defensive gear within europe. that is key for them, so that is something that will push forward in the coming weeks. the question is will they be able to get along? this shortly on the question of defense, france has been big on the lofty, poetic rhetoric, scholz has been saying put your money where your mouth is. can they get on the same page is the key question. tom: oliver crook on the ground in frankfurt. we will speak with the u.k. shadow secretary of state for business and trade, jonathan reynolds, that's at 30 a.m. u.k. time on "markets today." we will get the view on how labour is continuing to position ahead of that july the fourth vote. and what we have barely hearing from the conservative party. plus, lots more coverage from south africa coming up. we have jennifer zabasajja on the ground right now in cape town. we will speak to the former anc member running as an independent in the western cape at 7:30 u.k.

time, nine 10:00 a.m. we will be joined by south africa's finance minister, ahead of that crucial vote which takes place on wednesday. but before that, "markets today" with lizzy burden, gertie gupta and myself coming up in the next couple of minutes. this is bloomberg. ♪

her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

>> good morning from london. this is bloomberg markets. i am kriti gupta. the cash trade just less than