>> good morning. this is bloomberg daybreak. i'm tom mckenzie in london. these are the stories that set your jeopardy. nvidia leads the magnificent 7 higher. the chip maker roars past $3 trillion in value leapfrogging apple. the poised to cut interest rates. the path beyond looks murkier. the netherlands kicks off voting in the european parliament elections. what is at stake as 27 nations decide? the 25th rod high for the s&p. driving the market to that new record. european futures looking to build on the upside as well. european futures with the catch up play coming in.

marks now almost fully priced in two cuts from the federal reserve. yields fell again yesterday on the 10-year down around four basis points. adp, the print around the jobs. in the k, the ftse 100 is pointing higher around 20 opponents. commodities getting a lift so far in the session. let's have a quick look then at the 10-year benchmark given the yield move yesterday. four basis points. we are of course continuing to assess the economic data out of the u.s. and lead up to the importance over the phenomenon farm payroll print on friday. after a fall of four basis points yesterday.

a significant historic date for the ecb cutting for the first time, expected for the first time before the fed ever on record. we'll see if that comes to pass. 108 euro dollar. bitcoin 71,000. down .2%. 71,000 on the largest cryptocurrency. >> those expectations, fed cuts, lifting the mood in the asia pacific. particularly for tech shares it was how nvidia crossed that $3 trillion mair market cap. we're seeing the c.s.i.300 in the green today despite lingering concerns about the property sector. actually sliding 20% from their may highs and this is really

reinforcing the idea after the rescue package that we saw there are not many boosts that we're seeing for the real estate sector concerns on that very important part of industry. tsmc is rallying to a record high today. morgan stanley expects it to raise fees. nvidia recently acknowledged the value of its foundry services and announced a share buyback today. we have seen a buoyant move coming through on this chip stock. we have been keeping a close watch on what's happening in india of course. after the initial shock from the election results. the dust seems to be settling a bit. the rupee is weakening still even on a day where we're seeing

a softer u.s. it is helping the rupiah which yesterday plunged to a four-year low against greenback. even though we're seeing gains today it is pairing them after a boj board member, the setting seem to be appropriate. it seems like that is causing investors to adjust the expectations of what we get out of the boj. tom: thank you very much indeed. staying on the central bank story, the ecb expected to kick off etc. rate cutting cycle today before the federal reserve for the first time ever. despite a bumpier reteat from price growth caress teen lagarde said inmedication that is under control. let's go to lizzy burden who is in frapg further. we are expecting the decision.

the cut that is fully price by these markets. the forecast around growth and inflation. what are you looking for? >> you're absolutely right, tom. no one told them in frankfurt the weather has changed. it is time to change direction and cut rates. almost unanimously expected by economists even some of the more hawkish members of the governing council, accepting that it is time to cut today. that level of condominium has raised some eyebrows in recent days because of the latest economic data. ennation sticky. wage growth rapid. and therefore the focus today very much on the path, how many cuts do we get this year? you mentioned the forecast, do we see an upward trend for enmedication that?

that suggests the bar is high for cuts. we'll be listening to the press kofns from christine lagarde. do they come quarterly or do we get a pause? you're going have to have strong signals from christine lagarde to get a sustained euro-dollar. tom: the ecb looks to break the moalt mold and go ahead of the fed for the first time ever. as to whether or not the situation that much different between the eurozone and the u.s. >> the starting points were very different. the u.s. it was that massive fiscal boost. the euro area, following the invasion of ukraine. at this upon the, parallels are being drawn because you have sticky inflation on both sides of the pond and policy easing could be cast as policy errors

alert. you have warnings off the back of that economic data from ruling ott essentially a july cut. holtzman saying he only cease two for the rest of 2024. it could be tom that we see less divergence between the federal reserve and the ecb. what it looked like in april. tom: thanks very much indeed. outside the ecb headquarters in frapg further. we will have full coverage of that ecb policy decision at 1:15 p.m. u.k. team. we will also bring you of course president christine lagarde's news conference half an hour after the decision. now to the politics of the eurozone. the nether lands is the first country to kick off four diverse voting in the european parliament elections later today. more than 370 million people across 27e.u. nations are eligible to vote.

what is the timeline then for voting among e.u. nations? >> it really kicks off in 21 minutes in the nether lands with the first vote being cast in the european election in the nether lanes. they are going to elect the 21mep's that they get. what happens next? ireland tomorrow. saturday the big first nation, italy. sunday most of the action with germany, spain and many of the other european countries and manned you get a picture of what it looks like. what happens next? where do these parties actually seth? what broader group will they participate in? the amp fd got booted from the identity and democracy party. where will they seth? what groups can work with one another? then it gets kicked to the leaders. they have to have these back

room discussions about who they want to put forward as a president. who is going to run each of the commissions by country, by party. that thing goes to another interesting little part, the secret ballot in parliament where that person needs to get a majority of votes, 361 votes. it is a secret ballot. you can vote wherever you want. really when we they can't the time lien, kicks off today. if everything goes to plan without any snags we'll have an idea of the architecture of the european parliament by mid july. tom: there you go. secrecy. complexity. political horse training. you have injected the excitement into this election. you're in berlin. when you think about germany and the vote there and the implications for the nation that sits at the heart of europe,

what are you watching for? >> it is really interesting is that european elections are this kind of weird and interesting canvas for a lot of different kinds of political expression. people may be voting for the actual e.u. policies, we want these policies and politicses and we're going to vote for this party. for many others it is a referendum on national politics, how they feel about what is going on in their country. others i would never elect this person in my country but in theeu parliament it makes sense. we'll be watching turnout. last time you had 50% turnout. higher than i anticipated. slower than the national level. still has half of the people in europe vote for this. in germany, it questions interesting. you get that referendum on schultz and his coalition. of course we have been talking about a lot in the leadup to

theeu elections. this wave to have extreme far right that has crashed in the last couple of weeks after there have been a lot of different scandals within the afd and a number of violent political attacks within germany including yesterday where an afd local politics was stabbed. it was not cheer if that was politically motivated. all of this heightened tension. will we see this going closer to the center? all that to watch for. tom: ok. oliver crook. a great breakdown. thank you very much indeed. back to the markets now. the s&p 500 notching up its 25th record close this year. yesterday. with ai nvidia leading the wea after hitting $3 trillion in market value. they have surpassed apple as the second most valuable company in the world. let's bring in mary.

give us the view then in terms of the catalyst that drove this fresh record, the s&p, a fresh record, the 25th record for 2024. what was bean this? is this sustainable? >> you know, there is two key things here that probably drove the rally. one them is the fact that fund mentales still remain strong. if we look at nvidia, it is surpassing its rivals and going -- looking to improve every year and looking in terms of set itself apart. meanwhile demands for ai and chips remains strong. you still have that strong ai drive going through. that is one factor come through. the fundamental side. then the tail wednesdays that you're seeing from u.s. yields. we have had a decline in u.s. yields over the past few days that has given growth stocks like nvidia and other tech a

nice little boost. if you have that combination, it is likely to accelerate. what we could see is if we see nonfarm payroll coming through and showing that prices are a bit sticky and employment is cooling, that obviously can can thwart some of the rally that we have been seeing and have an impact on the like of nvidia. for nvidia as a whole, that ai story, that drive that, demand for chips is going to keep it supported. tom: ok. $3 trillion market cap. nvidia, adding $5 billion to his own personal wealth. thank you very much indeed. coming up, india prime minister modi wins crucial backing from two key allies. we look at how markets in india are reacting to that news.

plus we go live to the super return private equity conference in berlin for two exclusive interviews 6:30 london time we are joined by goldman sachs e asset manager. those conversations later this hour. stay with us. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak europe. happy thursday. south african assets were among the world's worst performers yesterday after the amc said it was considering a government comprising selve parties whether than a tie-up with a business friendly democratic alliance.

>> political parties in the country. we are admitting with all parties that have came to -- ideas and how we can move our country forward for the government that it shows national -- tom: let's get more on this story. jennifer jones us live from johannesburg. how likely is this? how likely is it to take shape ultimately? >> right, tom. this was quite a development that we got yesterday. it was interesting to here that they are engaging -- hear that they are engaming with all parties. except the michigan lk party that they have not received a response. they said they are having these discussions. now it is really up to the bigger, tops brass az as we call

it to make a decision and these negotiations are starting today behind closed doors and really the reason we heard from the amc is they said this is what the south african people voted for, especially if you take a look at the percentages of support. this is the most inclusive option. it would not be the first time for this country. it was also a government of national unity in 1994 during nelson mandela's time. the question really is can these party that ares that that are different in terms of ideology come together? and form some sort got to get things done? that is perhaps why we saw the market reaction we saw on wednesday. tom: what are the concerns around market participants? the risk scenarios and the upside scenarios that market participants, investors may be they go about when it comes to

this? >> right. the biggest question is will these parties be able to actually work together? you were mentioning the democratic alliance, tom. we had the democratic alliance here earlier this week. they said they will not work in a coalition with some of the leftist parties like theeff and the mk party and we heard from south africa's communist party saying they will not work with the democratic alliance. there still are clearly a lot of roadblocks getting all of these parties on the same page. perhaps that is why we saw some of the reaction in markets. although the am scrrch describing this as inclusive, the question is will they be able to get on the same page and get some broader policy decisions decided on. that is anyone's guess. it seems like the market is not concerned that would that will happen and will have to give in to some of the more radical

policies. we heard from one of the largest asset managers in south africa that is 91. the c.e.o. saying that poem a government of national unity could be beneficial for the economy. we'll wait to see whether other business leaders get onboard but the market is not quite convinced yet. tom: the uncertainty is still there for market participants and the people of south africa as they wait for more details. thank you. from the politics of south africa to the politics of india and arguably more clarity when it comes to india. the prime minister modi has won crucial backing from two key allies in his coalition allowing him to form a government and extend his deck naid power. -- decade in power. this is still a weakened mo dinner but he has managed to cobble together this coalition. what does it mean?

>> you know, this is a prime minister, modi's first tryst with coalition politics. coalition partners are going to have some say at least. which means that you have to look at this in context of time periods, short-term, medium term and long-term. in the short-term, evaluation premium would come down. there is some policy uncertainty. especially for reforms, land and labour. now that is for the short-term. now for the medium term because coalition partners are there, you know, the backing, leaders who have been -- handed portfolios like tech or it companies. these sectors are in focus as to what would happen for them.

this means all the medium term might be a little low. that won't be -- there might be swings. lower risk -- that is medium term. for the long run, economic upcycle remains on track. earnings remains on track. tom: ok. thank you very much indeed on the long-term, medium term and short-term risks around the equity markets of india that are picking up today. seeing gains in the sensex of 1%. making up for much of the losses that have come through immediately after some of those vote counts came through earlier this week. thank you very much indeed on the latest out of the indian political story. there is plenty more come up. stay with us. this is bloomberg. this is bloomberg. ♪ i can't believe you corporate types are still at it.

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tom: welcome back to bloomberg daybreak europe. some other stories making the news thursday. the bank of canada has become the first g-7 bank to kick off an easing seekle. they lowered the bench mark by 25 basis points to 4.75% yesterday as widely expected by midwests. they said it is reasonable to expect more cuts if price pressures continue to call. he pushed back on the questions about the bank of canada veering from the fed. the u.s. justice department and the federal trade commission have given green lielgt light to antitrust investigations into nvidia, microsoft and open ai. all major players in ai space. the wall street journal is reporting that the ftc is looking into microsoft's deal

with start up inflection. they are expected to fight the investigations. sml has become europe's second company overtaking lvmh for the first time ever. making the world's most sophisticated semiconductors at 377 billion euros. nordis remains the most valuable company. the family behind chanel, the holding company behind chanel is to receive a $5.7 bill dividend for 2023. the largest since it began publishing results in london six years ago. london met reck property will join the ftse 100 in a reshuffle that pushes out of london's blue chip index for the first time in

six years. u.k. land lord london metric joins dark trace in being promoted to the bench mark. they drop down into the ftse 250 mid cap index with wealth manager st. james' place. we return to the world's largest private equity event. we'll be speaking withman sacks asset management live. 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!

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tom: this is bloomberg daybreak: europe, i'm tom mackenzie in london, these of the stories that set your agenda. nvidia leads the magnificent seven higher driving s&p 500 and the nasdaq to fresh records. the chipmaker roars past $3 trillion in value, leapfrogging apple. diverging from the fed, the ecb is poised to start cutting interest rates from record highs today. but the patheon looks murkier. the netherlands kicks off voting in the european parliament elections later today. we discussed what is at stake as 27 nations decide. let's check in on these markets. yes, fresh records for the s&p yesterday driven partly by the story around nvidia. the 25th record high for the s&p at least in 2024, does it have further legs from here. we check in on the earnings

story. the french cognac maker in terms of the current operating coming in 304 million euros. that's on four year all current operating. organic current operating profit, for your operating profit, that was a drop of 27, almost 28%. they are coming through with a four year dividend per share above the estimates. they had been just shy of that. stuck down 27% year to date. let's get back to the markets. impulse coming through from nvidia. a very strong rally for europe yesterday. asml with the gains of 8%. we check in on the futures right now. european futures looking to build on the upside of yesterday . ftse 100 futures with a commodity rally up. s&p futures flat after that record of yesterday. nasdaq futures looking to add a 10th of a percent. that's what the board across assets. yields dropped four basis points

yesterday. private jobs data, pointing to a better calling around the late market. the benchmark 10 year at 4:29. euro-dollar on a massive day. 108, up a 10th of a percent. brent at $78 a barrel. bitcoin back below 71,000 at 70,008 hundred 70. let's go to the european central bank. ecb poised to start lowering interest rates from record highs today. confident that inflation is sufficiently contained to ease the burden on that economy. that's go to bloomberg's lizzy burden, who remains on the ground for us in frankfurt. what are we expecting? >> christine lagarde is in the building. she's arrived and she has been telegraphing this decision for a long time. we are expecting a great cat today to 3.75 percent fully priced by markets. it's almost unanimously expected by economists, but as you say, the recent economic data has muddied the waters for the path

ahead. inflation has been sticky, wage growth has been rapid. therefore we look to the cruise -- clues to the path ahead because economies have said they expect three cuts this year but traders have paired their pets and they are only fully pricing two. we look to the forecast for inflation for clues to make revised upwards for 2026. that would signal a high bar for more cuts. also listening closely to madame lagarde. does she say that we are going to have quarterly cuts from here on out, or is it a cut today, a pause, that a return to data dependence? tom: bloomberg's lizzy burden outside the ecb in frankfurt covering the story throughout the day. thank you very much. the world's largest private equity and venture capital event is taking place in berlin. central banks and monetary policy will be policies today. kriti gupta on the ground in berlin.

kriti: one of the conversations in the capital markets and credit markets will be that translation of this higher for longer narrative, then the policy diversion that lizzie was just talking about on both sides of the atlantic. i have the perfect as to talk about it and expand to how that translates into the pe world. joining me for an exclusive conversation is global cohead of private equity over at goldman sachs alternatives. pleasure to have you on the program. connect the dots for us as we talk about higher for longer, longer than expected, we just heard lizzie talking about the fact that rates are now getting pushback. rate cuts are getting pushed back further and further. what does that mean for the private capital markets that aren't as reactive as the public ones are? >> thank you for having me this morning. you are certainly seeing a slow recovery in private markets as great -- rates adjust. that recovery is fueled by two things. on one hand we see a recovery

because of financing conditions becoming better. i would say that yes, rate cuts have been slower, than we probably originally anticipate it but the direction of travel from our perspective is clear and we think financing costs will come down over time, may be within a base rate reduction today. that's definitely helping activity. on the other hand, we see the need for assisting private equity owned assets to transact is becoming more and time bound. there's a large community of lps who need what we call a epi, i.e., a return of capital. those are driving a slow but steady recovery. kriti: people are more optimistic about private capital. they are more concerned about when the party actually stops. what does that mean for valuations? green on the screen in the capital market, does that just mean things are overvalued?

where do you stand on that? >> what we see in the private markets is that valuations have come down over the last 12 months and i think that's because of this slight imbalance because of how much capital was deployed and then the need for that capital to be returned. we see the gap between buyer and seller has narrowed over the last 12 months and that's very supportive for more and activity. when you introduce the fact that base rates are probably coming down on the credit spreads things to the reopening of the syndicated loan market are narrowing those two factors, then it helps generate more. kriti: the mismatch is leading to a buyout. you have seen hedge funds very vocal about it. the idea that so many institutions and endowments funding some of these pe deals, the money is wrapped up that they cannot deploy it in other ways and are hurting the smart money active in the public

markets. when do you see -- he talked about the narrowing spread between buyers and sellers, when might that narrow even more to the point that it becomes more popular? >> i think we see steady progress. i think one of the things that is helping is we are starting to see the first ipos. when base rates come down, usually that's helpful for ipo markets. whether that's 3, 9 or 15 months away, it's still hard to tell, but we do see that the ipo market is getting into gear slowly. the fact that the ipo market is more conducive to the fact of credit markets, all of that should lead to more deal activity. but i will say, first and foremost, it's worth saying at this point in time on what does a good deal look like. i think a lot of people see the playbook focusing much more today on operational excellence through activating your network, making sure you line yourself

with secular growth trends. making sure what you buy fits into a strategic context because there's an assumption sometimes in the market that you could just sell the asset onto the next financial buyer or seller to them ipo. in this case we will interact. but one and it be better if we sold our assets to strategic buyers with synergies, and those seem to be less effective if you look at corporate m&a away from private equity activity, you would see there is very healthy corporate m&a market. for those creating companies that fit into the corporate context, you are seeing pretty healthy exits at this moment. kriti: it's interesting that you use the word healthy. brace yourself, jamie dimon at jp morgan made a comment that took a lot of capital markets by surprise saying that private credit may have some similarities to the mortgage market in the gfc. obviously traumatizing everyone in the financial space. he's making it a point that even though this is a thriving

market, some of the deals may be too complex and they may not be worth the ratings they have been getting by credit agencies. where are the warning signs in this market, especially as these deal structures get more complicated. >> first of all, when you construct a private equity, you shouldn't rely too much on private credit. i think it's important that the vast majority of it comes from operational initiatives and by scaling the country through operations and the growth in new geographies and new sectors, etc.. and you should not rely on just trying to create an economic equation that on paper works just because you have access. i think some fuel construction has been made with that and that's probably less healthy or long-term valuation. i do not think at this point in time we have a systemic problem. we are seeing new entries come into the private credit market and they need to figure out why

the good assets have not just taken the marginal assets and the less well performing assets. kriti: do you feel there is a trend under middle-market activity to do the bigger deals, to do the juice deals? >> i think where we and our platform play, we have seen an ability to really drive the value creation through operations and through the power of the network that we activate. and we will therefore continue to stay. it's very tempting to constantly try to go up in size from warrant a um and by doing even bigger deals. we need to look at what other returns that have been generated, and we certainly see the market has very healthy returns that are really helping these companies scale. it's fascinating when you look at the amount of resources, with all the resources we deploy into an operative market investment,

the talent we can source into our platform and inject into the oil companies, we see great results. that's why we think it's a great place for us. kriti: i love that you called it a resource raise. there's a question where we are talking about what role the banks play in the private markets, where as private capital, private equity, private credit fills a void that a lot of major banks like yourself, took a step back. what does that partnership look like? are you partnering with bigger pe firms? are you looking to do deals on your own? >> we are open minded. sometimes we go controlling shareholder. i'm sure multiple platforms come with multiple benefits. in terms of the banks versus the private credit markets, we are seeing a reopening of the syndicated loan market and that's led by the markets. we think it's healthy for markets that we don't just rely on for private credit but we can

have a balance between syndicated low markets and private credit. but we have seen is that has altered the cost of capital down and that has been helpful. especially when you are doing deals where you are relying on some leverage in the beginning, but also ongoing access to leverage because one of the best ways in our mind to build value is to buy a platform and then to acquisitions and in some of those who would do by injecting more equity and some he would do by taking more leverage. for those deals to have a very functioning that market posts and in the private credit. kriti: it's going to see an additional leverage. global head of private equity at goldman sachs alternatives. back to you. tom: bloomberg markets today. kriti gupta on the ground in berlin with that exclusive interview from super return. we will head back to berlin where she will speak to the

senior managing director at vista equity partners. a firm with $100 billion of assets under management. that exclusive interview is next. this is bloomberg. ♪

tom: it is the world's largest private equity event and it's in full swing. kriti group is on the ground for us at super return with another fantastic guest. kriti: one of the bait conversations in the market, you are no stranger to this, is what's going on in the big tech space. we talk about this all the time in the public markets, nvidia, salesforce. when the party keeps going, what makes a crack? they see the concerns in the public market, does it then dragged down the rest of the market. that's from the heavy hitters.

it does have a translation into how investors around the world, even in the private markets are looking at that software enterprise story, looking at the ai story and changing not only the valuation but even the funding story. we have the perfect as. joining me now for an exclusive interview, senior managing director at vista equity partners. about $102 billion of assets under management. pleasure to have you and see you in berlin. lovely to have you. walk us through that story, that translation between some of the worries we see in a public market about reaction we see on the upside on the downside. how does that show up in private financing for software? >> what's interesting and important to keep in mind is that with over 100 thousand enterprise software companies globally, 97% of them are private. but i think we are seeing in the public market is still an assessment of the long-term impact of generative ai, which is still digested and determined. private markets just aren't as

concerned about the issue. i think as we are earning innings with generative ai, we really see an incredible amount of opportunity on the horizon, and the resiliency of the software business model means that we remain really bullish about the future. kriti: how bullish and is bullish too bullish? when you see someone screen on the screen, when everyone wants to get in on the trade, there seems to be some lack of clarity around when that return actually comes. how bullish is to bullish? what signs are you looking for that perhaps evaluations are looking to toffee? >> it's a great question. what's important to keep in mind is that some of these trends will take years to play out. we are looking at how the operating model shift from generative ai, the technology application and also what these products can do for every sector globally will take, in some cases 3, 5, 10, 15 years to come to fruition.

for us it's less about what is the quarterly impact, but how do you think about the strategy of these businesses and generative ai from a long-haul perspective. when i think about all the green on the page in terms of valuation, i think there's a lot of valuation. we've come off difficult years from a deal volume perspective. you see folks really rebound with excitement. at the same time, these trends will take a good amount of time. kriti: does that create a premium on the actual valuation when it comes to tech? from an equity perspective it's always -- already extreme valuation. is there a built-in premium to that story and how does that affect the lack of buyout? >> we are enterprise software investors from private market standpoint solely. i cannot comment on the public market valuations and where we will see them go. but i can tell you is that the enterprise software business model has been one of the most resilient and productive we have seen since the industrial revolution.

we have seen it continue to be high from a contribution standpoint for profitability and durability despite economic cycles. so when i think about the valuation on the private side, especially for the small-cap market, which is the fun that i run, it really is an opportunity for us to not be attached for those public market comps, instead, think about the long-term durability of these businesses, and they really have proven out over the last few years to be that resilient. we have seen valuations come down about 50% since the height of 2021 and early 2022. that is now being normalized in a way that i think it's been healthy and expected. kriti: is that normalization the same as resilience? if you put that in the context of the economic cycle, there is a question of this unprecedented economic resilience you see in the american economy, arguably the european economy. what does a red flag look like for you in terms of, maybe there

may be cracks emerging. >> we only invest in mission-critical software companies powering business in every sector around the globe. these are products that when the pandemic hit, companies chose to pay their software at renewal bills instead of paying rent. we think about the companies that have that durability, they are the ones that have high roi. they have the consistent value creation and deliver what they provide to those customers and they are the companies that don't get turned off. i think that mission criticality is part of the safeguard that i would consider. i think in terms of some of the red flags, i would be looking at companies that are nice to have versus mission-critical where there a lot of unknowns. kriti: i would be remiss to not talk about one of the major deals that they have done. it is in conversation and super return right now. it's been in the news, bloomberg has reported about how that story has been written down from

vista partners. there's a lot of confusion, perhaps you can clarify for the audience, why the write-down existed, 50 million dollar payment, why not inject that liquidity into the company, why do it the way it panned out? >> unfortunately i'm not able to comment on any investment performance. what i can say is that this is a business that has very specific company based issues in light of a very difficult external macro want -- macro environment. i would encourage you not to over think some of what's being said because i think it's a very fluid situation. kriti: it feels like there could be concerns about deal structure and what the nitty-gritty looks like. there are questions around financing, synthetic payments. there is a lot of jargon for international audience. do you feel like these deals are getting more and more complicated? how do you think about deal structure? >> in the small cap space, we don't see as much of this heavy structuring taking place.

we continue to see a focus on core fundamentals. we don't use leverage and small-cap space. by small-cap i mean companies with under 30 million. these are businesses that we acknowledge can barely pair the rate of heavy interest rate expense. that hasn't been as much of an issue for us in the small caps space. kriti: last question to you, it's ecb day, we are a week away from fed day, talk to us about this interest rate environment, what kind of christian does it create in the private capital markets only talk about the keyword used, resilience. >> we don't bet on interest rates when we think about the deals we structure and the deals we bring to investment committee. while we are interested to see how this plays out, it hasn't been impactful on our strategy currently. but because we have a private credit platform here at vista we are bullish on the opportunity ahead and proud of the results that our team will build. kriti: senior managing director

of vista equity. tom, back to you. tom: bloomberg markets today anchor kriti gupta with our exclusive interview. there is plenty more coming up. this is bloomberg. ♪

tom: it is the corporate story of the week. nvidia above $3 trillion in terms of market cap for the first time, overtaking apple. buffer size and scope, let's put this in context. if you can buy nvidia, apple, and microsoft in their market caps, you are looking at a market cap combined with these three companies that is greater, larger than the entire market cap of mainland china. by the way, mainland china is not -- it's the second largest market in the world. but it has combined microsoft,

apple, nvidia with more than $9 trillion of market cap. just for nvidia the stock is up 150% year to date. it has added 1.8 trillion dollars in market cap just this year alone. the ceo of that company added 5 billion to his perfect -- personal wealth. nvidia's fortunes are linked to asm, which is now the second largest company in terms of market cap here in europe. lvmh, the shares pop 8% yesterday. shares up 40% year to date. this is the crucial company making the kits that enables you to turn out these semiconductors. there's plenty more on these stories in a deep dive of the ecb. markets today next. this is bloomberg. ♪

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>> good morning from london. this is "markets today." kriti is in berlin.