question of the stories that set your agenda.

under pressure, joe biden faces first calls to step aside from chuck schumer and nancy pelosi telling the president he cannot beat donald trump. the global caps off continues. and watching and waiting with you see the expected to hold rates today, investors look for hints from present christine lagarde. we are live in frankfurt. abb coming through with earnings that are top lines -- orders

coming in a little softer than estimates in the second quarter for this industrial giant. with a focus on robotics coming in. just slightly below the estimates of 8.64 billion but in terms of all that for the second quarter, 1.5 6 billion u.s. dollars. the estimates up 1.5 5 billion, the margin also improving and confirming its outlook in terms of the full year of revenue of about 5%. the abb seen a full year increase in terms of revenue of around 5%. in terms of the topline, the drugmaker, second quarter, earnings beating estimates. we know there is a focus on some of the key drugs and demands for those net sales in the second quarter coming in above the estimates. 12.5 one billion dollars in terms of the estimates, that was

for 12.3 billion. a pretty decent beat for nevada. just shy of two dollars. i'll be coming through. volvo cars with a focus on demand for electric vehicles and focus and question marks as well about the tariff regime being imposed by the eu but also in terms of the study -- story out of the u.s. as well with those tariffs being imposed by the biden administration. this company is a gauge of that. they expect retail sales to grow by 12-50% in 2024. let's get the profit line coming through. here is a line on tariffs. this would affect the key suv which is the x 30. for now it is produced and manufactured in northern china.

coming in about the estimates, volvo cars just shy. 6 billion in terms of the margin for this automaker. the estimates have been for 6.6% in terms of the margin. this is a redhead right now. that is a redhead for the earnings. there are a lot of numbers to digest throughout today. we will be speaking to the volvo cast for more on those results. 6:10 a.m. london time. 6:30 a.m. local time as well. london time. unpacking the results and implications of the potentially increased tariffs and further instructions to these global supply chains. let's check in on the global

markets. the operation into china also continuing to factor in the politics of the u.s. and what we have been hearing from the fed officials, chris wilde on his views around when you get comfortable with this. the ftse 100 futures pointed to gains of .5%. european futures pointing lower by .1%. stateside, looking to modest gains after losses of 1% yesterday. the nasdaq and the lower by 3%. the worst day since 2022. futures for the nasdaq pointing higher budget site of 3%. we are going to be zeroing in on the commerce from christine lagarde, whether she looks in

september for cuts. u.s. tenure at 445. yields around two basis points i call it factoring in. the rotella at 109. just getting .4%. gold at 2467 per trade. several top democrats met with the resident this week. chuck schumer and nancy pelosi are among those that are reported to have spoken to him about his candidacy. the president has got covered. the symptoms are said to be mild. let's bring in kriti gupta. what a tough moment for president biden. he just can't catch a break at this point. >> there's a lot going on. the bigger ones are coming out of of the three biggest policymakers from the democratic party. really pushing against president

binder take a step down. these are three people who haven't really probably spoken about his health or even some of these calls really rallying around his party. they are reporting that members like nancy pelosi, chuck schumer, hakeem jeffries, the former speaker of the house, the senate majority leader and the senate -- house majority leader are trying to get rid of some of the u.s. politics jargon. three of the biggest players that have not been vocal about his needs to step down. see him winning the election against president trump. they are now rallying around that very case. this is something president biden has turned around in terms of some of his own rhetoric. he said that if a medical condition were to rise, he could see himself being a transitional president and ending the baton off vice president harris.

those are pretty strong words coming from a president who said he was going to take his deals -- take his heels into the race. >> now between the two parties. we have heard from j.d. vance. >> a lot of what we hear from j.d. vance is something they also here from president trump. we are hearing things about free trade agreements. things going against china, europe as well. we are talking about pulling back on the manufacturing sector, how biden has been on a spending spree since he is -- has been in office and also in his 40 year career going to the presidency as well. the direct quote was making

america weaker and poorer. this is a lot of jargon. what needs to be kept in check here is j.d. vance is appealing to the mega -- make america great again crowd. that is not representative of the trump agenda. that is largely a campaign tactic to rally that part of the campaign at a time when president trump is pushing back against some of the more extreme right policies that his party -- parts of his party is really vying for. >> in flurry of political headlines as we passed that speech by j.d. vance, the vice presidential nominee. keep an eye on the fortunes of president biden and the pressure

>> absolutely. the chips are down. we are seeing tsmc getting the double whammy from both biden and trump. it is down. they see the nikkei in negative territory further from the first piece there. we saw it hit earlier in the month. this might be something we see going forward continuing.

this is an interesting past week. leaning into u.s. data. the so-called trump trade. it will be really interesting to see where we go from here. >> every home in singapore. the yen catching something of a break at least for now. let's check in on the chopra. mark, help me understand this. this should come as no surprise to people investing in semiconductor companies that the direction of travel from the biden administration from the

u.s. is for the restrictions in terms of the sales into china. why did this come as a surprise? i am trying to understand why semi sold off about 7%. this should not be a surprise for investors. >> it was. japan mentioned investors were taken aback. the united states is apparently going after what they thought was a key ally. japan would have been off-limits for most investors. that is the one country the united states would not mess with. apparently not. if this report is direct, they're going to go after a very important company. don't forget that this is one of the best stocks in japan. a very large company. since that report it the wires yesterday, about 24 hours ago, the stock at some stage was down about 16%. as a present, $15 billion

whacked out in a heartbeat. that is enough a lot of money. some very unhappy investors clearly caught up -- called out. investors do not like things coming out of left field. also, the timing is dreadful. it is the beginning of the earnings season in the united states. we still have all the big tech companies to cut. nvidia is still a few weeks away. another is the key one in terms of ai related which is partly been driving tokyo electron's early this year. it really puts a big cloud over what comes ahead for the next few weeks. people may have been a bit cautious going into the earnings season. now they will be very much on the defensive because they will be wondering if there are any more shocks to come. the bar was already in the eye. the earnings have to be extremely good to sacrifice what is building up in the market this year. now the bar is even higher. it will be very nervous.

if you get any more details, we could be in for a very bumpy ride until nvidia reports in a few weeks. >> edgy investors again around the semiconductor space. we will break that down for your live on the show. meanwhile, to the macro and the policymaking of the u.s., the fed government saying we are getting closer. let's listen in, we are getting closer to be able to cut rates but we are not quiet there yet. let's listen to what the fed governor had to say. >> the current data is consistent with achieving a soft landing. i'll be looking for data over the next couple of months to buttress that view. so while i don't believe we've reached our final destination, i do believe we are getting closer to the time when a cut in the policy rate is warranted. ? , a couple things jumped out to

me from that. a soft landing is still the central scenario for chris waller and number two, we are getting closer to being able to cut. the timeframe was not be no doubt by the fed governor. >> what traders are hearing is something they haven't heard all year. that is the fomc is getting very close to a consensus. at the beginning of the year, jerome was a bit of a low voice. sounding more dovish than the rest of his members but clearly, they are all coming toward the same point, more and more that are saying they are ready to do something about it. september looks like issuing. one that the market is pricing in. there is no chance they going to get together for july unless there is a shock in the data between now and the fed meeting and a couple weeks. they're not going to do everything -- do anything there but they will tee up a move. if we get a series of soft data

between the next meeting in the september meeting, the market will stop pricing, thinking the fed will want to kickstart and try to avoid the election as well. even though it looks like the rate pricing is done, it probably isn't. we can easily be looking at a much more aggressive profile for early rate cuts before we get to the election. trump of course already politicizing the fed, saying they should not cut before the election. thank you indeed mark. as we were through the earnings story, we will have those interviews with the ceos and executives but first up in terms of the political agenda over in france, today is the day when the new national assembly meets. after this parliamentary --

shock parliamentary elections and the fact that the national rally came third with the leftist group incoming first. emmanuel macron coming second. that restart of the problem in france happen say. it is the ecb rate decision. inspected to hold unanimously. essential unanimously. it is the press conference with christine lagarde that is going to be the focal point of the interest today. u.s. jobless claims will be coming out, crossing the wires and giving us a bit more clarity in terms of what is now a slightly cooling labor market in the u.s.. coming up, a second quarter incoming income beat. we will speak to the ceo, jim rowen. that is next. this is bloomberg. ♪

>> it focused on the earnings story and in this case, the auto sector with volvo cars coming in with a beat in terms of second-quarter operating income margins also coming in higher and of course, in terms of the revenue, that was slightly below the estimates. the margin was beat, the operating income was beat. and a couple of lines in terms of tariffs.

in the market using a bit of a slowdown in terms of growth. let's bring in the ceo of this company. jim rohn for a take on the earnings picture for this business and a broader look at the sector. we have the be coming in for you and the company. what does that tell you in an environment where you have seen slowing demands. is the overall market started to turn now? >> at the end of the day, it's always about product and about engagement with the customers. we are happy with estimates. repeat the estimates. we grew the business by 15%, we grew the gross margin and that resulted in better margins that expected as well. but it comes down to the product. i think what we are finding now is we have great technology in our cars but we have that heritage of safety is to -- safety and sustainability. although that's coming together now and it's helping us attract new customers.

the latest small suv is attracting so many new customers for the company as well. that is now three months in the market. we are pleased by that of course. >> is the broader market turning around, jim? >> there is a lot of turbulence in the market. if you look at the peaks of the total cars sold, it still down from those peaks. in some places it is coming back. in other places not so much so it is very much a mixed bag. that's why we need to have a global product offering. >> there was a line there around the turn of risk. you are impacted by the tariffs being proposed by the eu. what is your take on what the eu is suggesting? >> we won't know the final outcome of that until later.

the tariffs at the moment are obviously going to have an impact on profitability to some extent. for us, it is a short-term problem. that's the only car we bring from china. that's going to go into a belgian facility. we publicly announced that a while ago. the short term will be hit by the tariff. at least not for us. that will be something which will be affixed at the industry in general. >> until that production comes online, in belgium, do you absorb the costs as a company? do you pass some of that on to customers? >> that's what we're working through right now. we have good price position in the markets, a strong brand. we are getting a look at all those, all the opportunities around that.

european union has not decided what those tariffs will be. those are the deliberations. we don't know the final until november. the majority owned by a major chinese company. d pushback on those tariffs? course in general terms, i believe in free trade. the company is bringing the best product to the market compared to the prices and given those opportunities to customers. personally, i would much prefer to see free trade. i think commerce has proven that that drives value. so the fact that i had the choice, i would like to see free trade. is normally whether it's about china or europe or china verse the u.s.. that's not my concern. my concern is that markets

compete, the companies compete on the strengths of our products and services. >> you postponed the sale of the x 30 inch the u.s. market after the biden administration put in tariffs of around 100%. what do you do with the u.s. market at this point customer >> if you look at those tariffs five or six years ago, that was 2.5% and then the increase to 27.5%, now 102.5%. that means we want to get the manufacture of that product interrupt so we can start supplying that to the uso we delayed the launch of that specifically. we have some great cars in the u.s. anyway. that will affect our sales. the 40's, the 60's, the 90 range. those will help us make sure we can have sales numbers in the u.s.. as a short-term problem -- question rohn, really appreciate your time. on the beach, coming through.

much more coming up. stay with us. this is bloomberg.

♪ >> welcome back. xi jinping unveiling his vision for china's economy. communist party will publish plans around technology driven growth and chinese style modernization.

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♪

tom: i am tom mackenzie, these are the stories that site your agenda. joe biden bases calls to step aside. chuck schumer and nancy pelosi saying he cannot donald trump. fears of tight restrictions on semi conductor sales to china and novartis raises its profit forecast for the second time and volvo reported better-than-expected operating profit. staying on earnings, tsmc, asia's biggest company coming out with its latest numbers and it's a beat in terms of margins. gross margin coming in, that

income beating for the maker of nvidia. 247.8 billion. estimates i been for $235. a solid for the foundry. no doubt ai will be a key driver of the story. let's get analysis and cross to someone who follows in grainy will detail. tim culpan what stands out? tim: good top and bottom line numbers.

margins are crucial. margin is helped by the fact that the taiwan dollar has been sliding. when the taiwan dollar falls there margin goes up. good numbers. 30 minutes from now we will have an investor conference. they will be told what the company sees for revenue. if they raise revenue outlook is expected to bring growth of 2425 percent with hopes they will announce of growth estimate and that would show nvidia and apple are doing well. ai has been a huge driver and we're looking out to see if they

raise the estimate. they estimate 28-32 billion u.s. dollars, but they may spend more. tom: how are you thinking about geopolitics? news around restrictions and comments suggests taiwan may not be a priority should they win. tim: it's bipartisan going on here. it's possible biden will tighten the rules on what equipment can be sent to china even -- even if it is not american equipment. asml and tokyo electron who sell to the chinese may be curved so

that has hurt the industry. on the others, former president trump spoke with bloomberg and said here is the issue with taiwan as they took our to business. taiwan has been a big player at the expense of the u.s.. there could be implications in terms of ramping up chip production in. tom: tim culpan on these crucial earnings. thank you. switzerland's abb recorded a 19% margin tying into offsetting declines. i'm joined by the ceo.

thanks for joining us. you pushed through some positive changes, talk about demand for the data center story, do you see demand continuing? guest: it has been strong driven by ai and all the data needed in the world so we expect this to grow but it's not only data centers, it is electrification of the world at the core. tom: is that a story that evolves to the upside? bjorn: data centers is coming from electrification business

and we had 23.2% on margins. it's a big beat so we believe that short and long cycle will grow strongly. tom: our input costs coming down? bjorn: margin improvement is driven by the gross margin, the value we are being paid for. it is also operation driving productivity and making sure the costs are low. tom: how is china looking? bjorn: china is negative and we

saw stronger electrification business in china. our view in china remains the same so if we look here from last quarter demand is the same. tom: do you want to expand in china? bjorn: we believe in china, think china will be important. if you look at the important green technologies, solar, wind, batteries, you tv carts, 80% come from china and we do believe china will play a role in the future and china has been

important for abb, 15% of revenue. tom: how do tariffs impact the business? bjorn: the whole world is localizing so if the chinese want to be successful they need to manufacture locally and that is the same as europe and u.s. are doing in china. all foreign cars in china today is produced locally. tom: on -- on -- on the ev business, give us an update. our capital markets looking more favorable? bjorn: no, that is the most

challenging part at the moment, market demand has softened and we have a big transformation from an old product to a new product which we launched, we think it will be a challenging year for the world and we should see improvement beginning next year. tom: ok, sounds like next year. ceo bjorn, indeed, indeed. stock is up 40% indeed. u.k. prime minister keir starmer is hosting 58 european leaders at his international summit. russia will dominate the agenda with a focus on what a second donald trump presidency could

mean for ukraine. a reset of relations. bloomberg's oliver kirk joins us where the summit is taking place. this is the kind of location he deserves to be at. how important is this meeting? oliver: this is crucial. this was the brainchild of emmanuel macron after the invasion of ukraine to bring different countries to discuss issues like russia. 50 countries are here. turkey, norway and the u.k.. this is a place to host so you can imagine how valuable this is, this would take months or years to get these meetings and

he does it in one blow. he has to redefine the relationship with europe. it's his chance to strike out what this looks like. have attitudes changed since brexit? the other thing that looms large, this is where theresa may hosted donald trump and trump is a huge figure. we heard from j.d. vance. they will make their allies pay, no free rides on security guarantees is what they're trying to get. a meaningful pact between the u.k. and eu. tom: you can almost hear

champagne corks popping in moscow. the echoes in terms of history given that is the birthplace of winston churchill and what that tells us. oliver crook, thank you. plenty more, we will speak on the ecb decision later today. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak europe. ecb likely to hold rates but investors will look to christine lagarde. i'm joined by the director of

rates and trading. thank you for joining us. what are you listening out for? do we expect a locking in for the next cut? >> thank you for having me. good to be here. today is not one of the quarterly meetings. we are seeing weaker momentum globally. we expect chinese data and in the u.s. inflation prints have been lower than expected. the market is pricing in probability of a september cut and this is important because if

data surprises on the upside and we expect cuts in december that could also point to a slower pace for the ecb and global data has eased off. we are seeing data in line with expectations. the ecb story show demand following and we are seeing double-digit levels. increases are backdated and wage negotiations are settling at 2%. tom: ok. ok. economists -- economists see further cuts. there was the may cut or the

june cut i should say. how do you push into 2025 given weakness you underscored? >> yes, ecb would not comment but we got clear signals they intended to cut in june so it is likely that they plan to continue at that pace. there was strong pushback so we know rate cuts are not likely and going forward our outlook is dovish and we expect cuts in september and december. central banks will be more forward-looking and we see a

chance of more dovish outcomes. tom: is that suggesting you are challenging the view that inflation is around 2.5% and it will be a challenge to get down? >> we believe inflation is still catching up with the inflation increase of the past and we still obviously will have challenges now that the eu is leaning more on infrastructure and green energy and defense. that could have implications going forward for inflation. that remains to be seen. we heard they will initiate a

deficit procedure and asking governments to reduce deficits and spending so we need to see if risks will materialize. tom: that takes us to france. we will see if lagarde addresses that. director of rates and cmf trading at scotia bank. two or three cuts this year from the ecb. the inflation story continues to evolve. we will bring you live coverage throughout our program and european futures point lower, u.s. futures higher by 2/10 after a selloff within the chip space. plenty more coming up, this is bloomberg.

♪

tom: welcome back to daybreak europe. here are some other stories. wto accused china of lacking transparency.

chinese notifications do not provide information on spending including ev's, solar and chips. united airlines expects third-quarter profit to fall short of expectations as carriers cut ticket prices. united echoed delta and warning price cuts are weighing on the industry. alaska is forecasting third-quarter and fourth-quarter profits below estimates. let's check in on semi conductors, that sector has been crushed. reporting that the biden administration is considering restrictions on the sale into china and you saw a selloff

yesterday. biggest drop in over four years. nvidia lost $200 billion, close to half one trillion knocked off. i'm baffled because this was where the wind was blowing in terms of restrictions of the sale of technology but it took investors by surprised. let's flip the board because the premium in terms of buying in is above the index level. nvidia trading at a multiple of 37.2. amd at 34.9. there is the premium they are demanding versus the premium you

will pay if you invest. that is the chip story and then there is the ecb. we are not expecting surprises like a cut but it's what we hear from christine lagarde that will be important in terms of how we build to september. they came through with a cut that they locked into in june. today solidified that september is next? the rate previously act iv has been above the inflation level in the cpi level for 10 months. that is the concern that there is stickiness in the euro zone linking to services that poses a challenge.

that ties into that story but that is the context in the inflation story. there is plenty more coming up. analysis, geopolitics, central banking and guests on the opening trade, up next. this is bloomberg. ♪

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>> good morning in london. here's what you need to