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>> good morning, i'm tom mackenzie. treasuries are higher, cooling labor market, that's for rate cuts. indian prime minister loses his majority in parliament forcing him to rely on allies, wiping almost $400 billion off stock values and the first tv debates of the u.k. general election with labor leaders trading barbs. modest gains for u.s. stocks, job opening data below estimates. biggest drop since 2021,

european futures up because there is a readjustment of expectations, bringing forward cuts from december to november. u.k. futures pointing to gains, s&p futures building on modest gains. let's flip the board, bitcoin is interesting and we will start with the 10 year yield, yields dropped on the back of data. 433 since the end of may. you've seen 30 basis point move lower. 433 on the u.s. ten-year. rent is $87 a barrel.

stockpiles are growing. bitcoin closing in on 73,000. further gains in the session getting one percentage point. avril is standing by with a check, what is standing up to you? avril: before i take you to indian assets after the rate sensitive sector and csi 300, we got services pmi failing to impress investors. stocks are a drag, yen is weak.

two days of appreciation in the japanese currency after soft data and the boj will mole over bond purchases. seeing a climb taking a breather after wage data real less than expected. yen hovering around 1156. keeping the focus on india after election results, raising concern about what this will mean for economic policy, yesterday we saw 380 billion dollars of market cap. a bit of a recovery in the nifty, 6% decline, yields

climbing, slight recovery. goldman seeing earnings growth, that seems intact for india. that does not seem to be reflected when we look at assets in the country today. tom: avril in india, thank you. bodie vowing to stay on as prime minister. we could not believe that. after his party lost its majority in a stunning upset. >> today's victory is the victory of the world's largest democracy, unbreakable allegiance in the constitution. in our third term, this country will see a new chapter of decisions.

tom: joining me is bloomberg's southeast correspondent haslinda across the story from the outset. we stunning blow to his policy agenda. haslinda: you are right. the people saying no to status quo, yes to change. this is how the night felt. modi's party garnered 242 seats. it has the largest number of seats, but it did not get the majority it needed. he will have to lower the party alliances in his coalition. they are kind of flip-flopping. the parties joined the alliance several weeks ago so we're

unsure if you will convince them or if opposition will peel them away so there lies the problem, how this might play out. there is certainty that he will form the government but we are not too sure if he remains the prime minister and is able to form a majority. 8% drop in markets when they opened, it dropped again. therein lies uncertainty with markets uncomfortable. tom: indeed, a dramatic route yesterday indeed and very little done in india indeed. the sensex, what does it mean in terms of policy and uncertainty going forward for this potential

government? haslinda: it all depends. we talked to investors and they expect policies to remain intact. we talked about stars aligning, fastest-growing g20 country. s&p is about to upgrade the credit rating in 24 months. we have 80% of the population below 35, a lot going for this country and growth is expected to be maintained with the plan modi has in place for more than $500 billion. the question is whether those policies like labor or land, whether they can be pushed through. these are difficult, that's why he was looking for a super majority, but in the end, people

matter. this country has 200 million -- billionaires in the world. their highest number behind only the u.s. and china. people want more, policies have not translated to wealth. that is what he needs to address. tom: bloomberg's haslinda live in new delhi with continuing analysis out of india. thank you. now to the u.k. where the prime minister clashed over taxes in the first tv debates. >> we will raise taxes, we have been clear. we've dealt with a tax break on private schools. we think the super rich should pay their taxes.

prime minister: let's have the specifics. so we raise the allowance for pensioners and ensure the pension is never taxed, that is what you will get, he has not match that pledge so for the first time in history, pensioners will pay tax. i do not think that is right. tom: let's get more with lizzy burden. who wins? lizzie: the prime minister wants to be about tax. he made it about tax. he came out at 51%. his opponent, 49% so the conservative won the debate.

the response to this tested tory tactic of labor as tax raisers was to say it is garbage to raise taxes by 2000 pounds. he did not land that rebuttal, why labor rushed out explaining in more detail. but even if he managed to get his point across in the debate, it cost him likability, this is the point, we had a pole right before they went on the set showing the biggest landslide in political history so a two percentage point lead in the postdebate polling is not notable. as you remind us, it is july 4 that really matters.

tom: arguably, there was more for -- for -- for him to gain given -- given that gap. he did not land any blows or in fact that they landed any blows on the prime minister? is there anything we can take away that might feed into the campaign? lizzie: the biggest audience was directed at the prime minister and he got the biggest laugh at his expense. this was a moment when he tried to say wages need to come down, a bit of a gaffe, the opportunity to say i thought this guy was good at math. his main message was after 14 years, we want a change. 14 years of underinvestment left them creaking and most expect

taxes to rise and polls suggest they want labor to do it. it was poignant when they were asked would you use health care if a loved one was on a waiting list? it is an easy line to cut through, most memorable for reddish people. tom: there is another one this month. thank you indeed. let's get to economic data and market moves. labor market data fueling fed rate cut bets. swaps pricing in a november move. it was december after job openings fell. let's bring in executive editor mark. we've gone from an environment where we were hearing hawkish comments from officials.

dado lining up soft for the u.s. whether consumers for manufacturing. we've seen movers, what is your take of this data? mark: it is disappointing, but the market pricing is right. one rate hike by november is fair of the fact that growth looked good until a couple of months ago and we have had softening prints. we don't know about the trajectory. growth has gone off a cliff and we could be talking about several rate or this could be a few misleading numbers. ism has not been good, negative bias and hard data has not backed it up. maybe the economy will be fine.

this friday's payrolls data will be more important than yesterday's data. we talk about this a lot, but jobs data is good for the macro and job openings drop the lowest since 2021, but they are the highest in history before 2021. the whole paradigm change started to normalize, job openings are falling behind. that is something we did not think was possible when i first looked at the numbers and it is good for the macro backdrop. still on the warm side in the economic metaphor, not the best identifying terms in the market. initial jobless claims are the best and payrolls are good for a broader number. tom: we look ahead on friday.

we have the ecb decision and they go with a cut. it is commentary and guidance, is that what investors are scrutinizing. the headline is ecb inflation looks more like the fed. does it? mark: a little bit, sticky inflation is global, so we knew services was sticky. volatile goods kill them out of the disinflationary cycle fueled by rising commodity prices so the ecb is more worried about sticky inflation even though growth is not strong. that is why a lot of people think the ecb will emphasize a dovish narrative and price in rate cuts. i am slightly worried that the ecb might take a note and

emphasize data dependence, they are open-minded and that would be disappointing to those looking for rate cuts. tom: really interesting. markets live executive editor mark with the analysis. you can get a round up to get your day going in daybreak. subscribers can go to d.a. why bigo to get the details on those stories including a story around blackrock, citadel and others. we are looking at expectations around fed pricing and details around intel selling a stake in ireland worth $11 billion. later on, we will speak to

apollo copresident scott clymer, a fascinating conversation. that is live at 6:30 a.m. u.k. time. this is bloomberg. ♪

♪ tom: hamas followed israel, both sides saying conflicting conditions most be met before they will agree to pause fighting. let's get an update with joumanna who has been following the twists and turns. what is the latest on this cease fire? >> officials pushback on friday,

in light of commentary. we are getting a response from hamas not agreeing in the sticking point is israel wants hamas out of the picture. qatar is waiting to get an is really response to highlight a proposal to be acceptable in money would like the war to continue to neutralize hamas. at the same time, there was an

interview given by president biden and he was asked whether netanyahu's political considerations drove the war. biden said there is every reason to draw the conclusion. those have been met with backlash. president biden has backtracked saying that netanyahu has to work out a very serious problem, underscoring sensitivities in addition to sensitivities between the u.s. and israel and israel's closest ally pushing forward those discussions. it appears both sides, israel and hamas are not confident. tom: joumanna, thank you indeed on the latest indeed. the leader of south africa's

democratic alliance party sees rome for a coalition deal. this is bloomberg. ♪

tom: happy wednesday. let's turn to talk in south africa. opposition leader says optimism is not misplaced. let's get more with jennifer out of johannesburg. what are the obstacles to a tie up between d.a. and and see? jennifer: with a look at the two parties. they have been opposition so there are obstacles to get

through, not just on the anc, but within the d.a., they need to talk about how to move forward. time is of the essence. we talked about how important it is to get back on a high-growth trajectory. he said yes that is important for all parties and south africa, but we talk about concessions and demands john outlines what the red lines are. >> we do not believe without compensation, that is a redline. sticking in its current form would be a redline.

we believe we need to include choice. there is a conversation about how to achieve that. jennifer: john went on to talk about how the choice that we are trying to figure out what it will look like, the choice is between pro market and anti-market parties and policies, but we got insight into how important this is. we saw the economy contracting and we heard that the outcome raises risks, it is important to pay attention to negotiations and what it will mean moving forward.

tom: jennifer in johannesburg. thank you very much. stay with us for extensive coverage on friday, we will speak to the economist and political analyst in our monthly deep dive into africa's political and economic landscape. coming up, intel selling a stake to apollo for $11 billion. copresident gives us his first interview of the day. we will be talking about that next. this is bloomberg. ♪

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these are the stories that set your agenda. treasuries high up. the science of a cooling u.s. labor market. forcing him to lie on allies. plus apollo makes an $11 million bet on semiconductors, agreeing to take a 49% stake in a new intel plant in ireland. we will be speaking to apollo's copresident in just a moment. the treasuries valid. yesterday's yields down. since basis points on the tenure.

we look ahead to nonfarm payrolls on friday. european futures with expectations prevent cuts. the ftse 100 can begin 47 points. 10 points up to point of 8%. they talked about the rally in the bond markets. this is a very modest easing. 108 on the euro dollar. some seven dollars of our on rent and bitcoin just bless him to dollars per coin. the intel deal agreed to sell it for numbers in state.

a massive expansion of the factory net worth. let's get to the bloomberg re-think her. >> i do. the guests you want to talk to, the co-resident of apollo asset management. thank you for joining this morning. this is a big deal. it is something a little bit different -- how hard was this deal to do? what do take to get it over the line? >> if you take a step back, companies all over the world are facing unprecedented levels of, digitization, who lives a energy transition and they're starting to think more creatively about how they are going to fund this capital.

lots of different creative structures and the ability to scale in these types of blue-chip large-cap companies. and their ability to come up with these creative solutions in scale is really critical. i think you will see more and more of this coming. in general, just the need for this kind of capital is sensational. all these tech giants have an insane amount of capex to try to get the ai capacity up. intel is one of them. how much of this is not just apollo backing ai but apollo

backing the intern. this is just a great example of how you're going to see more of it. >> does intel need more? they are trying to take a crack at nvidia. >> intel has announced over 150 milli-thousand projects. that is just one of many different countries across lots of injuries that did the step of capital. you can probably assume. >> we are here in europe. this is europe. a plant in ireland. europe has been behind on manufacturing. is there some might this is almost the tester that is the test trial? question zooming out of the red, i think you touch on an important point which is if you compare the growth rates in

europe versus the growth rates in the u.s. it is undeniable what is happening. a big part of that is how companies have access to capital. you have a very robust capital market, securitization market, a private capital market. either those things don't exist or are very small and very fragmented, very nations. i think you need to see more and more of this and you will start to see private capital play a bigger role here in europe. >> does teampia be more regulation here. quincy mason more complicated. you're seeing european leaders center recognize that europe is limiting this. it needs deceptive capital to encourage private capital. it needs to occur securitization in order to make that happen and

i know europe has been talking about for a while. oakley this is a little bit of a wake-up call. there is a great diversion so happen. we will get the first cut of this cycle. is there easier policy here to mark >> know. i think that is more indicative of the need of the economy to get boosted by more official lowering of rates. this is what we have been saying for some time ray castillo make sense yet. they bought deals at high valuations. requested is the one of the conference here.

it is a big gap. it will be having a tougher for private equity firms to see the types of returns they are looking for. ? because that dam to break? >> i don't know that it is so much a dam. i think the reality is private equity loaded up at the top of the market using very innocent of debt. the valuation environment is fundamental he and as a result, private equity responses are just going to have to hold company is all there, they will have to go into those capital structures, they will need to take on equity to get to refinancings done. it is just math that returns are going to be lower over the next few years. quick they have been clamoring

to get their cash back. so how do they do both at the same time was to mark >> they generally don't. i think you would see sponsors looking for creative ways to return capital whether that is through structured equity investments or other things into these portfolio companies but eventually, sponsors are just going to have to except the valuation environment is lower and start selling companies. are you getting ready to buy some deals? are you hiring to ash that question mark >> we have several hundred people already here right in europe and refill feel like we have a different footprint. course you are ready for the deals. what kind of valuation discounts are we talking about question mark >> i don't think it is so much discounts as it is just repriced. when deals are purchased at is your present rate, at a 5% rate,

that valuation environment is lower and whether marks were like that are not, tbd but the reality is it is coming. one of the venue for exiting historically is ipos. it is kind of counterintuitive because stocks are at an all-time high. you would think the appeal market would not be back. if it isn't back now, as of fun? what the equity markets have fundamentally changed. because of the massive increase in indexation and passive market participants, the market doesn't care about the three billy dollar ipl were five milling dollar ipl. that is forcing sponsors to take about how you exit. unless you are prepared to just exit at a mediocre valuation, you're going to need a different path exit.

i think that trend is only continuing. look at the u.s. equity market. 10 stocks represent a third of the s&p. that is just indexation network. more and more dollars floating into the biggest stocks and that is tough for small companies. >> you sound a little bit like david einhorn. he has also set fund mental compass can't get a break. take me out five or 10 years from now where the ipo market -- we decided this is no longer an option except for a few slick companies. what are people doing instead question mark >> it is that very disconnect that actually makes public to privates very interesting right now. the s&p looks like it is hitting all-time highs. the stock is down here today. that is just not reported on, that is not what people fundamentally know but there is a lot of interesting companies at reasonable valuations out

there. to answer your question, where do you go with this? this isn't -- this is all the more reason that this matters. you can still go public. you just may not get that super premium valuation you thought or you are selling to a strategic or another sponsor, recapping, there are lots of ways to do it but it can't be dependent on i'm just going to get out at a premium perfect valuation. it is a whole new world. thank you for joining. really appreciate your time. everything for you there from ai to ipos. courthouse fantastic. thank you denny, lots more picketers joining us throughout the day. david hirschman, the cohead of premier credit morgan stanley's david miller and scott sperling,

co-ceo of thl. do stay tuned for all of those conversations. some earnings crossing from india text. it is a beat in terms of first-quarter earnings, coming at 1.64 billion euros of the smith at 1.61 billion euros interesting as well. that is a the terms of some calls. other braking lines coming through from softbank as well. they are rebuilding a stake and soften, pushing for a buyback. that copy listed in tokyo. the stock price jumping on the back of this report coming up 5%

on the back of this. the state is worth more than 2 billion u.s. dollars according to reporting from the financial times and they are again pushing the activist investor for a buyback worth as much as 15 billion u.s. dollars. accordant to reporting from the financial times, the stock railing over in tokyo on the back of that news. we'll get were details on that in the hours ahead. european parliament actions are getting more tomorrow. we will have a look on the war in ukraine and how the threat of russia is playing a part in the boat, that is next. this is bloomberg.

>> president joe biden is planning to meetings with

ukraine's little ms. less he in the coming weeks. the u.s. leader is seeking to telegraph solidarity with kyiv in the war against russia. the president will meet zelensky this week in france on the sideline to the 80th anniversary of d-day in more cash in normandy. a second meeting is planned for the following week at the g7 summit in italy. voting getting underway tomorrow in the elections to the european parliament and the continent ceased with the threat of russia was at hand, security has played a central role in the campaign, including of course in poland. to bijan's biggest economy. how central able is the security question playing in this election? particularly for eastern european countries across the eu? >> indeed that is the central question for countries in the

eu. we are talking about the countries of the baltic states. in poland especially, security has been the main topic they have picked up on. he sort of cast himself as this gatekeeper appear. he has warned against the threat of sabotage from russia and others. there is a pickup in the number of migrants who are trying to force their way through the border with belarus. they are being flown in from middle east. the centerpiece has been that he is going to build what he called this on the board.

he has been portrayed as weak on defense by the opposition. it is the third election over the last eight month. there is a sense of fatigue. he basically said if you don't want to go to her that, go vote and that message is there and is trying to say this is a very crucial election for poland and europe. if we look to pull his borders and hungry, toilet stent is the

hold of of funds -- toilet stent is that a risk for investors and how is the politics, how is the election likely to play into the role that hungry place? particularly when it comes to eight for ukraine? >> in hungry, the election is quit interesting in that sense because it is both the european palm and local election but the first time in a long time that we are seeing the prime minister facing a challenger. suddenly if humans ago he turned against them and became something of a whistleblower for the administration. he went after or bond. he kept talking about the corruption and the weakness of the economy and suddenly the sky was catapulted into a mean challenger for the leader for

five terms right now. so for the first time in a very long while, he is having a challenger, he is obviously in conflict with the eu. there is money being blocked and they have been pointing out that obviously something has to change. he's not going to win this election for sure. the party that he is leading right now is probably going to receive about six seats in european parliament reelections. as a matter of fact, he is facing a challenger for the first time but he is still trying to portray himself as the one who's making sure there is peace. he is the only government in the eu that is making sure it the humans and going to war with

russia. because he doesn't support aiding ukraine. that is causing a lot of concern among the leaders in the eu. it is holding up aid. a lot of them in the baltics are raising concerns. they are worried about this. >> thank you very much. thank you. over in spain, a judge has some of the wife of pedro sanchez to testify as the target of a criminal investigation. gomez will have the opportunity service but the questions next month into influence peddling. the spanish government says the foundations are unfounded and part of a broad right-wing attack. they have booming demand for their blockbuster diabetes and obesity drugs.

the cl spoke to bloomberg at the cost of his medicines and the difficult questions the company has faced from various governments. >> most products are priced according to the venue and idle really good about the venue and what they bring to the individual patient but also the value to the health care system and we have health-care systems around the world who are specifically designed for acute care. but finally percent of the cost is linked to chronic care and we have product really addressing some of the chronic diseases of our day and age. >> you can see that will interview on leaders would like. on thursday, there is 20 more coming up. stay with us.

this is bloomberg. his

let's look at the flood of money into the treasury markets. this is the opening stages of a pronounced fund rally or is this a vacant terms of expectations around where the fed goes? you are seeing goes down about 30 basis points since the end of may until this point now. your at 434 on the u.s. tenure. this is a line that is closely watched. if you break through that you can be looking at a range of or and 4.2%. this being built on expectations the data has been softer for the u.s.. yesterday, the jobs opening data

following the most -- falling the most in three years. expectations being pulled forward from december to november. your seen the effects in terms of money flows into u.s. treasuries. this is the level to watch on the u.s. tenure. there's 20 more coming up. we will have dealmaking with guests joining us throughout the day. a strong list of beginners including david hirschman, head of from your credit. david miller and scott sperling, pledge more coming up on markets today including some of those conversations. this is bloomberg. he's a

good morning from london. this is bloomberg markets today.