>> good morning.

this is bloomberg a regular. happy monday. these are the stories is that your agenda. agreeing to extend production costs while laying out a 12 month timeline to bring some barrels back online. this is the next generation of agrex elevator chips. the co says the world is experiencing constipation -- competition inflation. plus, coalition talks in africa. losing power for the first time -- this is a stratagem. it is a risk on across these markets. nvidia is part of the play going through here but also in terms of the asset value.

that is leading to a risk on session in asia. in the request to europe. looking to add 51 points. a consensus we will cover the first time in this cycle on thursday. u.k. futures looking to add a 10th of a percent. our concerns about the property sector in china. for the week it was down there friday you did see green on the screen for u.s. and european stocks. nasdaq futures looking to add .3%. try to set the challenge in terms of that.

this is coming in a little softer and maybe refueling that's on break cuts coming through for the pen. the eurodollar at 108. gold just off by .2%. iran is standing by. we have a fed rate cut optimism but also china data and then the to keep an eye on and on top of that, nvidia suppliers in the region, the other ones that are helping to rally, they are the biggest boost. we are seeing the hang seng leading the charge.

the csi 300 is trailing behind. who want to show you what we got out of china data. showing perspective activity that climbed by the most in about two years. this contrast is what we got out of the official bmis last friday. it seems to point to a bit of improvement. it when a pitiful picture of the chinese economy. the bonds also climbing. this is as exit polls show a landside victory for modi. there is an optimism of policy continuity as well as clarity.

we are also saying the groups rally stock today. business interests are most aligned with the policy agenda. the power unit is out almost 40%. overall in india we are seeing utility as well as energy stocks . >> the election is about to be confirmed. on oil, opec plus setting out a plan to restore some production as early as october. that is just my concerns over the demand outlook. talk is through the decision by

opec plus and where it takes us. >> by any metric for anyone following the oil market for years, it is certainly complicated in nature. merely because there are many different sets of cuts the opec plus alliance are referring to. what is necessary for the market to take away here is that the group cuts, those other ones all opec members should be bound by will be extended into the end of 2025 and then you have another set of cuts. these are the so-called voluntary cuts introduced by eight members in november of 2023 worth 2.2 million barrels per day. this is where it gets interesting. those voluntary cuts will be extended until the end of 2024. september 2024 after which they will be slowly phased out.

should the thing that market conditions are going to change. this was a bit of a source of contention. it is interesting to see that many traditional analysts are pretty divided about what this means for the market. morgan stanley said they see this as slightly neutral to possibly boast for prices. lots of different views out there.

when they're coming through for the uae. on a slightly different story which is saudi aramco's share offer and the demand that we saw for that. quick they are going to be launching the secondary sale of their stocks on sunday. that started yesterday. they are looking to raise $12 billion. in addition to a handful of -- handful of international orders that would have pre-come through. monday is a training day. a lot of the international investors are back in the market

and what we are hearing is the book building process will continue around the course of the week. we know the price range -- that is price somewhere in that range. he here for the kingdom is how much international demand. investors had a lot of -- not in the end the only job about 23% allocated to foreign investors. there is no telling how much of that ends up in the hands of the international committee versus the domestic audience. >> on the ground for us and we are but the contest around that share sale.

the details around that decision . now to the tech center, they are planning to upgrade its ai is elevated chips every year. the keynote address, nationals, university underlined how embedded he thinks ai will become. >> what do we learn and what us to relearn from the key?

this is feeding into the markets once again. she had nearly two hours to lay out his vision of where nvidia will go next. firstly there is the process that is announcing a few months back. it is something that is available for training, large language models. we will have an update to that. something that is much more powerful. and then just a few moments ago, we are going to get that new ai chip platform called ruben. that is coming in 2026. on this it is very scant details are part of the audiences at national taiwan university. it is coming in 2020 60 couple years down the track.

it is pushing ahead with a very ambitious growth target to stay ahead of the pack. >> we are also hearing as well from one of the key competitors. andy intent on closing that gap to the -- closing that gap to some extent. >> i think it is really interesting when you compare because andy is one of the companies that has made more progress than others in trying to catch up to nvidia. nvidia absolutely dominates this market. andy is making around $4 billion. they got these new details

coming up with add chips on the way. they are still seeing drunk -- a strong event for that ship as well. it is coming out of different contacts. just kicking off in taiwan this morning. >> snappily named mi 32 x. thank you very much indeed for breaking down the details. trying to step up in terms of closing all of that. let's check out what else we can figure out next weekend. this will cut interest rates for the first time in the cycle on thursday. that decision not sent but that is the view from most out there in terms of the decision from the ucb.

really interesting to see to what extent there is a shift to the right. the health of the u.s. economy after some data on friday suggested consumers are starting to fall back. coming up, agency against talks with rivals to form a government after his worst electoral performance since 1994. we are live in johannesburg. plus we're also going to be lives in motives and his election for the third time around in the session this morning. this is bloomberg. ♪

>> welcome back. not to india's election. narendra modi's party is sent to win a decisive majority for the third time in a row. the expected win would -- not less cross over to mumbai. they are likely to beat the 2019 number and exceeded by at least

10 to 20 seats on average. that is extraordinary for a government that has been in power for 10 years now and not just extraordinary but prime minister modi seems to be expanding his footprint hold across india. in these examples, they indicate he is expanding his footprint to know places -- there seems to be a capitulation and then the south where the bgp seems to be making new inroads. this size depending his strong position in the north. if the exit polls turn out to be true, they have also found a way to extend his charisma for the next five years. >> if the -- if these examples

are confirmed, what are the keys for these refreshed government? where's we are all seen what a skull policy continually. we have seen an equity bond rally in india. this example news if confirmed comes on the back of a slew of positive news. he made his outlook upgrade. that gives the government more money to spend and a solid forecast which is critical to the economy. but policy is not going to cut it i'd suggest. the government needs to think of more ways to add jobs which has not been a success area for the last 10 years. a boost to consumption which has been on the decline for the last two to three years. bring more foreign investment.

fbi has not been very buoyant over the last two to three years. continuity is not going to be enough. stability is not going to be enough. this government is to find ways to do all these things i identify. foreign investors will be looking at one point mr. modi's government if he were to come back to power will do to boost manufacturing, will do with the ghost of the unfinished agenda on digital and privacy laws and will do to factor market reform. feminist modi said in an op-ed -- op-ed piece we need to dream and dream in india. that seems to be his agenda. >> thank you very much indeed. we will look for those confirmed results. to south africa and the elections there. getting for the first time in four days. just up around 20%.

the african national congress the reseller since 1994. they have begun talks with rivals to form a government after his first election performance since the end of apartheid. take a listen. >> what this election has made clear is the people of south africa expect their leaders to work together to meet their needs. they have voted to find common ground. to overcome their differences to act and work together for the good of everyone. >> joined me now is jennifer. how significant of a blow was this for the ruling anc? >> they are still the main party here in south africa which we should remember but if we think

about just the decline from 2019 to today, it was believed was if it is for this main party. you mentioned they got 40% before, they were north of 57%. this is clearly the voters are a signal to the ruling national congress that they can potentially be leaders here in government but they do want them to be working alongside another party and that is really going to be the big question here. who are they going to work alongside potentially to form the staff government fresco let's see if we can take a look at these results here. that is the third level there on the screen and just how well it did. largely at the expense of the amc. this means going forward is a big question and what do voters

want to see in this new government is what we are going to be very -- be paying very close attention to. >> the next steps are for the ansi top brass to decide who they are going to work with. i know you mentioned to the ran up for the first time in four days. those are somewhat optimistic after they talked about the fact that they have to work together with other parties further that of south africa. the number of them is that they are from other parties in particular from the mk party suggesting, demanding that they step down in order to form a coalition is not something that the anc is going to consider. potentially they start talking about working with the pro-market friendly democratic alliance. there are some in the anc who say their ideologies are so far apart so how's that going to happen question the next steps

are just in the next few days who their partner in government is going to be and making sure that in the next two weeks under the constitution they need to form what this government is going to look like. question, take you very much indeed. much more coming up. that is coming up , this is bloo.

>> welcome back. happy june the third. we have some other stories making the rounds this monday. israel pushing back on the cease-fire proposal laid out by joe biden. officials saying the plan they agreed to did not include a permanent halt to hostilities. by just three phase plan that he had said was israel's includes a six week truce involving hostage

present exchanges. a focus on a permanent cease-fire removing israeli forces from gaza and reconstruction. gloomy zelensky has accused china of working with pressure to undermine a summit to discuss his countries peace blueprint. in a surprise appearance on the sidelines of the shambala dialogue in singapore, they reported that moscow is doing everything to disrupt the event by using chinese influence and his diplomats. zelensky is trying to secure support among four leaders for the mid-june summit. claudia schierbaum is set to become mexico's first female president. in a landslide victory. three is projected former mayor of the nation's capital and candidate for the ruling marina party one between 55 and 63% of the votes. the coalition of opposition parties that had ruled the country for nearly 90 years is seen when he between a quarter and a third of votes cast.

coming up, we will do a deep dive on the preview of the european elections. oliver will be on the ground giving us an update on what to expect around you elections. macro as well facing a significant challenge within his own country around the debt load up in france. there is plenty more coming up. stay with us. this is bloomberg. he's got

quick this is bloomberg daybreak

era. i am tom mckenzie in london. these are the stories that tell your agenda. they are extending production costs while laying out the 12 month timeline to bring some girls back online. nvidia announcing its next generation of ais elevator ships valuing annual upgrades to its technology. the css world is experiencing commutation inflation and narendra modi is poised to secure a third term as india's prime minister. the stock market surges to a record. there were a number of catalysts feeding into the upside across is markets but also the futures as well. looking forward to a very solid session in europe if the story holds. the nvidia catalyst, through with that upgrade cycle. the indian election details set to be confirmed on tuesday.

the exit poll suggests the bjp and the mentor -- narendra modi are set by the third term and then a slightly softer consumer adding to bets that the fed will come through with at least one cut this year. european stocks looking to add a fourth percentage point at this point. back about 5000. u.s. u.k. futures looking at 68 points. yes futures -- nasdaq futures looking to 56 points, up .3%. yields down currently one basis point after a bit of money moved into the treasury curve by the end of the session on friday on the details coming through from personal consumption expenditures. the rebel at 103. a big week for that currency as we look sort the decision on the european central bank and that inspected rate cut. that is the expectation. $80 a barrel.

gold trading down. the politics of europe now where the far right parties are aiming to make big gains in this week's elections to european parliament, voted across the eu opens on thursday with some 370 million people choosing 720 lawmakers. we have a preview. what is at stake here? why should we care? >> i know you have been tense with anticipation for the last five years for you elections which begin this thursday with the netherlands. until sunday when you have everybody voting on big countries like france, germany. this is to set up at five your turn to get the sort of priorities for the people in terms of what they are going to focus on. are a lot of people come up with the actual importance is not entirely clear. we spoke to a number of the politicians running to illustrate exactly what is at stake here. >> i think a lot is at stake.

quest this is the most important election since 1979. >> i think there are a lot of other issues like migration, the green deal, i think ukraine will be the defining issue. >> i think every nationalist party is going to score. >> what we are facing right now if there is a surge in the far right, though european project is going to be put in question. quest with the eu needs to do here is basically set up that legislative agenda but clinically, the budget. that is one of its strongest instruments. depending on what the outcome is of the election, you will see that money go to different places. then the central left also. we will see a lot of emotion and this is significant. a huge loss of support that we've seen over the last few months for the green party in favor of the right end of the far right. the right being malone's party

and the id3 which has historically held afd over in germany. could you see money moving away from the european renewable projects? and toward other things like say immigration where the far right as certainly made it a much more policy priority where you will see consensus. this is as important as anything else is for defense spending. the nationalist party still believe in defense spending. particularly with the people election coming around the corner where they don't necessarily align is almost always in the same breath as support ukraine. that may not be an ironclad link. these are the important distinctions we have to make. >> oliver on the ground for us. setting aside very nicely for that vote.

thank you very much indeed. s&p global ratings downgrading the nation's sovereign debt from aa to aa minus. as it because the french government has missed its goal to remain in the budget deficit which is sent to remain above 3% of gdp in 2027. president macron has been campaigning on his economic record in the election. the far right leader described as a catastrophic management of public finances. now the main drivers behind the remarkably resilient american consumer are losing steam. at the same time it seems the saving rate now stands at a 16 month low. all as households have mostly exhausted the extra cash they squirreled away during the pandemic. let's bring in mary nicola for a take on the data that has been coming out of the u.s.. thank you for joining us. what is the take?

how should markets be interpreting the relative softness that we appear to be seen when it comes to the u.s. consumer? >> the gdp data, the personal income data is showing signs that the consumer is slowing down but it shouldn't come as a surprise, especially given how resilient the consumer has been frequent sometime. so yes, they are softening and activity data is pointing to some more signs of softening their. at the end of the day, they are still holding up and showing signs of relative stability so we are not seeing anything that is to concerning as of yet. i think the key concern will be how we are seeing with the labor market and if the labor market is starting to show some >> you will see more of that trickle through into the consumer data as well. >> a big week for the ecb, mary. what is your take on what the market should be looking for? it seems they come through with

the cuts for the first time in the cycle. what else do you expect investors to be scrutinizing from this decision? >> it will all be about how the easy meet lee's things out in terms of where the cuts are going from here. where are they taking it? there are a lot of the messages coming from east officials that are not clear on what the trajectory is of the right path and that is one of the reasons why you are a doll has been holding up. we don't have a clear idea of where rates are going after this june cut. so if we get more clarity in that direction you could see a bit more negativity on the euro and the dollar euro following from here. at the same time it will be about if the ecb can signal the cuts thereafter. the key thing here is last week's inflation data showed it is still not a clear trajectory on inflation which could put the ecb in line with many of his

peers say they are going to remain data dependent which is not something the market will want to hear. quest mary, thank you very much indeed with the context there. after the airlines base. supply chain issues that have held up the delivery of new aircraft around the world could stretch into 2026. >> in the past we used to have to deal with if you must, maybe two months. i think this has not been factored in. airline ambitions in terms of growth have been tampered with as a result of the uncertainty of supply. quest kai johnson joins us now from divide. you got that line out of him in terms of timeframe. 2026 potentially. airlines clearly still

struggling in terms of supply chains. what is your take? what are you hearing in terms of what it could mean in terms of the industries longer-term profitability? >> you were just talking to mary about what is happening with the consumer. the consumer according to the airline bosses certainly continues to be strong. that is the message they are delivering. they are complaining about the lack of aircraft to service those consumers right now. we of the problems with boeing. we know about what is happening there. but if you take a step back, this is an industry that is growing really fast right now and trying to put a lot of capacity into the market. in some ways, the fact that these carriers are being throttled back could actually mean more capital discipline. it could mean we don't see a big boom and then bust. it could keep the industry on track for longer. some airlines certainly are being impacted by this in a negative way but for others, the

picture might be one that prevents them putting too much capacity in. it is a really finely balanced decision about whether or not this is a good or bad thing for this industry. can we come for the key question about how long this is going to last. he was talking about this being the last year. he things the worst is still to come to comes to the store. tim clark is the president of the emirates. in particular about what is happening with boeing. this is what he had to say about how long it will take boeing to get back on track. because if you have to become of this will be a five year hayride -- five year hiatus. i think we will recapture their production lines. this is a challenge given the pressures. i think one step at a time. >> hearing from executives within the industry about supply chain challenges. in particular, boeing.

a lot of headlines around the london to singapore flight back in may. it is not a topic of discussion? to what extent are ceos taking this seriously and making changes? >> we are maybe starting to see climate change beginning to have an impact on this industry and a fairly meaningful way. we see aussie headlines be made around that singapore flight. it is not an isolated incident. we are seeing a significant pickup it seems that what is the airline ceos i am talking to. we are not at the state will they will start to change their protocols but i was talking to the ceo of korea and he was talking about the idea that maybe we are going to see a significant gap and we are as a result may be going to have to make some changes further down the road in terms of the protocols.

these airlines -- >> kai johnson of course on the ground in dubai. plenty more from guide throughout blessed be ours. do not miss our conversations. kai johnson will be speaking to the ceos of air france, klm, virgin atlantic, pegasus and many more. a deep dive of the important sector plus we are going to get the latest in terms of the india story. stocks, bonds and the rupee are surging as narenda modi looks set to win a decisive majority in india for the third time. this is bloomberg. ♪

>> welcome back to bloomberg daybreak europe. in the s stocks have surged to a record with rupee and southern bonds -- sovereign bonds climate. join aminah for investment, time for the head of the uae business and strategy. the rally is coming through today. we are expecting these results to be confirmed on tuesday.

these are just examples. expectation is they will be confirmed on tuesday. what you make of the market reaction and whether or not it can be sustained from here? quick thank you for having me. i think the example -- you are already anticipating the markets. the second the markets opened, this is on the backs of the expectation that the government is not only expecting the cross but it is also itching to test the 400 number. looking back at the election in 2019, the government kind of touch to the 352 number. markets are anticipating the same thing to happen as well. this is on the back of the

government coming into place. quick so is this a bed on stability in india or is this a bet on a reform agenda that is yet to be fully completed? >> a bet on stability. it is also looking at the growth sectors. whether it is manufacturers, industry, automated, all of these sectors on the board level. on friday, the gdp numbers that came in came way above expectations. we are also projecting a fiscal your number. all of these factors are based on the fact that the government is looking at a long-term average with regards to understanding --

we are his back broader level sector -- your banking sectors, that boost on the backs of the reforms of the current government that they are providing. quick foreign investors sought about 3.3 billion equivalent of integers in the month of may. does this bring foreign investors back or does the valuation concern remain? >> i do agree that the indian markets are barely over with emerging market peers. but on a broader level, the markets do seem a bit very valued as well because this is a long -- long-term projection. we are so much in line with the average and this is also emerging markets based.

there is a level of expectation happening on the backs of your emerging market movement from the indian economy to china's economy on a broad level. we do expect them to stay stable to continue the inflow that is causing what they are monthly. there is an attraction with regards to exits. we do believe the long-term reforms of the government currently in place will is term the long-term stickiness of flows. >> interesting. you touched on this. the importance of scrutinizing the fiscal story in india. what is the fiscal impulse likely to look like in the months and quarters ahead for india and how do you position around that story? >> we are looking at private

investments. we are looking at the manufacturing sector. about 11.61%. the private investment and government spending is expected to be at an all-time high with the government ready -- already focusing on private investments. emerging markets are also looking to have an increased allocation into new energy. your domestic demands have seen an all-time high. we are looking at market inflows. also because of increased participation. on a broader level, we are extremely positive. we saw that in terms of market cap. we are looking at this broader

level. positive on the confidence in terms of the economic prospect. >> this is the take in terms of what we are seeing on election results in india. as a result showing -- and let those results expected to be confirmed on tuesday. thank you very much indeed as we look at the nifty 50. up almost 3%. there is one more coming up. stay with us. is bloomberg. ♪

>> what puzzled me is why japan is so worried about the following in. it is not as if -- yes that does her consumer prices some but

japan as we said has been a country that has long had a problem with convincingly exiting deflation and a week again giving it a bit of a lag, that is actually positive for japanese goods and services. the thing i find puzzling is why the weaker yen is showing as much panic as they used to. >> empathy was much room in the japanese economy for significant interest rate hikes. considering that decline against the dollar, they compelled to the doj to height by october at the latest. >> another hike by october. not much room for the doj to height. paul krugman saying he is not so sure why they are so concerned about the end. they are concerned and this has all been happening since the end of april through to may. $62 billion have been spent to proper the currency. that is the most in terms of the

interventions that have come through. the yen is a 34 year low versus the u.s. dollar. has been successful? to some a stent it has been. that seems to be a little bit of a line in the sample to the doj. the pressure is expected to continue given the rate differentials. 0.1% for the b versus 5% for the federal reserve and that gap continues to be wide. it is not inspected to close anytime soon. we continue to watch whether the fed cuts and what the b.j. does in response. in terms of closing that differential. pressure will remain for the japanese yen. let's look the board and have a look at the pce and how this forms the fed. it came in top line in line with expectations. month on month, softening to 0.2% in terms of the personal consumption expenditures index.

it is interesting, the consumer impulse was softening out of the u.s. and wage demands as well weakening. that all plays into the favor of the fed. here is another story to have on your agenda. you remember mid-may there was a big run up in terms of gamestop shares. the stock is down 50%. now they are showing what seems to be a $116 million position in gamestop. this is keith gill of rome. we watch that stock. the meme stocks ramsey -- frenzy seems to be back. this is bloomberg. ♪

>>, this is "bloomberg markets today." here is what you need to know. nvidia plans to upgrade aix elevators every