>> this is bloomberg daybreak: europe. these are the stories that set your agenda. harris secures enough delegates to become the democratic presidential nominee. harris says it's time to unite the party and nation.

asian stocks rise as investors turn their focus toward results from tesla and alphabet. european earnings ramp-up. porsche cuts its revenue forecast. we will speak to sap's ceo in 30 minutes. the focus shifting from investors away from u.s. politics, arguably more to the economic data coming through later this week, as well as a focus on pricing around the federal reserve. still around 60 basis points by the end of this year with september praised him. inflation data and the pce gauge

friday. the earnings story also front and center. a number of big names crossing later today including the likes of lvmh and tesla and alphabet. it was a decent day for the u.s. session. making up for some of the losses of last week, the worst for u.s. stocks in about three months. european futures higher by .2%. you look at resources in the hit to iron ore. s&p futures looking at a little bit of softness. nasdaq futures also down by 57 points led by the magnificent seven. bloomberg dollar index a little softer in the session today. about .1%. the u.s. 10 year at 4.23. close to two basis points

euro-dollar at 1.08. let's cross over now to singapore. avril hong standing by for a check on the asian markets. avril: we are seeing asia equities in rebound mode, catching a break after three sessions of kleins -- of declines. it's pretty negative elsewhere in the region, including in china and japan. the nikkei has erased gains from earlier in the session of as much as .8% as the yen climbs. i wanted to take you to some of the names that last week were getting hard-hit and this was on the back of concerns about whether they would be targeted by the u.s., concerns about valuations in some sector rotation. today, we are seeing a bit of

optimism maybe trickling through, what we could see from some of the mag sevens that report later today and this week as well. this is what we're seeing in equities but we flipped flip the board again and you can see the yen climbing. it's also been gaining ground in the past two weeks against the aussie and the euro. traders seem to be bracing for a boj rate hike next week. that's despite bloomberg learning from sources that some policymakers see fit for a skip next week because of weak consumer spending. another potential driver for the yen's u.s. political uncertainty. that could prompt buying of the yen as well. tom: thank you very much indeed for a check on the asian markets. looking ahead to that key decision for the bank of japan next week. this is the wealth manager of a

private bank, julius baer naming a new ceo, naming stefan bollinger as the new ceo. he will start his new role at no -- role no later than february of 2025. up around 60%. some breaking lines from the company that is a focus of a takeover bid from bvea. sab net income coming in at 43. it's a beat for sabadell. so far, they have rejected the offer. it is a beat in terms of the second-quarter net income for that spanish lender at 483

million euros. let's get back to u.s. politics now and the latest in terms of the prospects of vice president harris, who has secured enough delegates to clinch the democratic nomination according to a survey by the associated press. harris says she intends to unite the nation and win november's election. >> in the days and weeks ahead i will do everything in my power to unite our democratic party, to unite our nation and to win this election. >> the name has changed at the top of the ticket but the mission has not changed. i intend to campaign with her. i will be working like hell as the sitting president getting legislation passed as well as campaigning. >> let's get more from vonnie

quinn, who has been covering this. where are we in terms of this nomination process? you talked to us yesterday about the road paris had toward the nomination. that seems to have been solidified. can we call her the presumptive nominee? vonnie: in fact yes we can. anything could happen before the dnc or during it. we know she won't formally accept the nomination until then, but according to the ap, she has passed the number of delegates you would need in order to get a majority at the democratic national convention, 1976. this happened in the last few hours when we saw texas, ohio and her home state of california come on board. we had others continue to endorse her throughout the day, including nancy pelosi. she will help connect harris with the donors. also governors are being vetted

by the fbi as possible running mates. we are down to business tomorrow. you heard joe biden on the telephone. this was the first time we heard from either of them in an official capacity president biden's campaign headquarters has been turned into kamala's hq and that is how she is draining her campaign. she will be conducting her first rally tomorrow in wisconsin, the key battleground state, home to the rnc this year, which was a few days ago. it's incredible to think how much has changed your deck has changed -- has changed. clearly the united front will get carried through the rest of the week it's crucial for the democrats to keep the momentum. president biden will be back at the white house tomorrow.

he will get back to the business of legislating and campaigning for harris. she will get on the campaign trail to try and make the electorate see who she is, somebody who is not just vice president but could be a potential president. >> there are vulnerabilities here. certainly those will be exploited by the trump campaign or they will hope to exploit some of those vulnerabilities. what do we know about how the trump campaign is adjusting to this new opponent. >> they are casting about a little bit. some of the attacks have fallen flat but there are general vulnerabilities with the democratic position for some voters. immigration will be a problem for harris. also the fact that she is not tested. she does not have policies yet.

that is something to trample -- the trump campaign will try to exploit. they will attack her record on economic policy and inflation because the campaign has not really managed to put it out to the american people that inflation has been coming down on biden's watch, that the economic policies have been working. people still feel it in their pocketbooks and that is going to be something that the trump campaign will exploit. don't forget she has a lot of strengths. she is 22 years the former president's junior. she has been out on the campaign trail with president biden and her policies are assumed to be similar or the same as president biden. there's a lot we will learn in the next several months. if she becomes president, she

would be the first black asian female to become president. there are many segments of the population democrats need to bring with them that will be happy to see that. >> vonnie quinn with the latest. let's stay on this topic and get some more insight. let's get someone who has worked with hillary clinton and condoleezza rice. thank you for joining us. is it your assessment that the democrats are better positioned going into november? >> they are definitely better positioned in a week ago. we have seen rallying of the party around harris, incredible amounts of money raised your debt raised. harris now has enough delegates to be the nominee. the party has come together to support harris and they are

excited by the aspect there's a lot to go between now and november 5 so it will not be easy but it's been an incredible start to this campaign for harris and she could not have asked for a smoother and better and more enthusiastic kickoff to her campaign in the last 24 hours >> the republicans have criticized the way this process has played out. they have suggested it is undemocratic. is there a risk there? is there a risk when it comes to the way voters think about this new candidate? >> i don't think so. the outpouring of support indicates to me that the base and voters want harris. and are on board. 80% of democrats are enthusiastic about the decision of biden.

i think the party has been careful those delegates represent the voters so that's not the party elite making that decision and i think it's been a combination of support for the party leadership and a groundswell of support for democratic voters, which is important. tom: who is your money on when it comes to the vp pick for harris? >> probably on mark kelly, the democratic senator from arizona. he has a great personal history as a former pilot and astronaut. well-liked and respected in the senate. he would hopefully bring the state on for the democrats. it's one of the six swing states in play and where the election will be decided.

the governor of pennsylvania is another strong democratic governor who would hopefully put pennsylvania into play and put that stayed in their column so there are a couple of good choices but i think she will pick a white male conservative or moderate democrat who can appeal to some of the -- she has a great appeal to young voters, women voters, african-american voters. there are still certain people who will want to connect with the ticket. >> i want to draw on your experience when it comes to foreign policy and foreign affairs. you have represented the u.s. all over the world. talk to us about the foreign policy adjustments harris may make when it comes to things like ukraine and nato.

there's concern as to a lack of clarity and where she stands on these key issues. >> i think it's clear. she will continue joe biden's policies she has been at the president's side for the last four years. she has worked with him on key policy issues and has been involved in decision-making and in my believe she will continue his policies, especially his approach to working with allies and working in partnership with allies around the world to solve some of the challenges we face so i don't see a divergence anyway what we have now with joe biden as president. >> really smart take on what we will be seeing out of the u.s.

and the harris nomination when we get that and where it will lead in terms of foreign policy and the prospects of democrats leading up to that. coming out, the so-called trump trade as their focus turns back. isabel joins me in a few minutes to discuss that. and i will be speaking to the chief executives about their latest results and the overlay of ai. that is coming up. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. bond traders are reassessing the so-called trump trades as vice president harris gathers support. they are also weighing the

political shakeup. it's a big week in terms of u.s. data. looking ahead at the fed's key gauge in terms of inflation. let's bring in isabel. how have your clients been reassessing the u.s. political landscape? what is your advice to people looking to either hedge or position around the changing political environment? >> more uncertainty has emerged in the last couple days. we saw the trump trade begin to gather more momentum. the events over the weekend mean we are seeing better odds, movement in terms of people's expectations, so between now and august 19, when we have a convention, that's a period when we will have more certainty on what the strategy is for the

democrats, and i think it's going to be -- you know, a much more open rates than a couple weeks ago. tom: tom: so it makes sense to fade that trump trade at least at the margins? >> it's worth assessing the risks and thinking about the whole package. i think on the geopolitics side, on the trade, there is certainly much less of a gap between those policy stances than we saw in previous elections, so thinking about china, it's not controversial to be hawkish on china. we have seen a lot in terms of tariffs and restrictions for access even under the biden government, so i think we would expect things like that to continue. the questions we need to think about is what's going to be the path of fiscal policy? are we going to see more borrowing? secondly, immigration, the fact that we have seen higher immigration, that has helped take some of the heat out of the labor market, so out of those impact inflation?

tom: do you think investors are still underwriting the risk of a fiscal expansion under a potential trump presidency and the inflationary risks linked to that? >> given trump has been pulling very strongly going into this election, we can reasonably assume that is appreciated by the market. you just need to look at the previous term and record on borrowing. so i don't think that's so much of an underappreciated risk but it certainly will become more front and center in the minds of investors and the fed. >> expectations that it is almost locked in for the fed. the markets are betting on a cut in september. does that align with your thinking in terms of the sequencing of how the fed goes from here. how does that play out into next year? >> everything that's happened,

you know, if you think about recent months, we have seen the softening of data come through and corresponding with that more of a dovish note in fed guidance. we had the june minutes. that kind of raised more concern than you might have gotten from the meeting itself. we have had testimony from powell. certainly, once the data is in place, then there is a willingness to do that, especially because by the fed's own admission, you have got space to cut without that, so that gives them a bit of cover. so i think it remains data-dependent. we have to see how the data evolves. into 2025, it could become more of a nuanced situation, especially with fiscal policy. tom: there has been some within

our own team of strategists suggesting 50 basis points, they could go for a jumbo cut in september to not have to act again before the november election. with that seem a step too far or would that be appropriate at this point? >> the issue is you are giving yourself a breather but you are also taking away optionality and in the last year we have seen how much central bankers value that optionality. >> on the bank of england, what is your view in terms of russians about the sustained nature of the downturn in inflation here? >> we have seen inflation heading steadily lower, but for the rest of the year, we are expected to see a bit of a revival in inflation. i don't think that should worry the bank of england unduly, but i think the re-acceleration we are seeing in some of the data

should give them reason to hang on longer so i think august is a key meeting. we get a monetary policy report, an update on the forecast. is cpi going to be up? we will get an update on guidance. i'll be looking for whether we see a change. we got a lot of nuance within the whole contingent. so expecting a september move but keeping an eye on what the report says. >> thank you very much. also the view of how politics is being overlaid across your strategy and the uncertainty that continues. coming s&p cloud revenue rises 25% as ai demand boosts the german software firm's growth. cei christian klein gives us his

first interview since the results came out. this is bloomberg. ♪

tom: welcome back to other stories making the news. a u.s. house committee has called on the ceo of crowdstrike to testify on a defective software update that caused widespread global outages. congressional committees have the power to compel testimony with subpoenas but usually first ask witnesses to appear voluntarily. delta airlines expects to cancel more flights this week as it tries to recover from a crippling tech outage. delta counseled more than 800 tech ops yesterday, bringing its total since friday's meltdown to to more than 4600.

windows operating system was affected. wiz has turned down a takeover bid from alphabet. they said they will stick to their planned ipo. they are cloud storage providers. coming up, investors will be watching for a robot taxi update from tesla as it reports today. porsche has a parts supply problem. our autos roundup is next. this is bloomberg. ♪ the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm.

it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

♪ >> good morning i'm tom mackenzie and these are the stories that set your agenda.

kamala harris becomes the democratic nominee and harris says it is time to unite the party and nation. investors turn toward tesla and european earnings up. s.a.p. gets a boost from ai let's check in on markets, gains coming through, a bit of profit taking. nasdaq futures are off by the tenths of 1%. futures taking a hit.

european futures .2 modest gains , let's look cross asset. yields are lower, down one basis point. euro-dollar at 108, brent is flat. s.a.p. reporting cloud revenue. demand pushes more clients to subscribe and i'm joined by the po. -- ceo. what do these earnings tell us about the shift to cloud?

>> good morning, s.a.p. is expanding, cloud momentum is strong backed by valley strong result -- very strong result. in q2 20% of deals were paid directly and it influenced every deal. because of our transformation program we could increase our profits. tom: fascinating. salesforce and workday faced a more challenging environment, what are you -- what are you -- what are you getting right? christian: we are not only

focusing on moving customers to the cloud. when you talk about sick people -- s.a.p. it is all about how you can grow your business. moving toward renewable energy, resiliency of supply chains, we connect your supply chain with the operations of thousands of suppliers and that is why we are so well woven. tom: what is the strategy? christian: rai copilot sits on top automating, doing analytics. we are making sure they are a copilot screening millions of contracts. second if you want supply chain

procurement you can in bed generative ai closing the books or hiring the best talents. we are not the with going side-by-side, we are embedding it in that was in eights. tom: it is that the kind of growth, can you sustain that in the quarters ahead? christian: we delivered a strong year one, pipeline looks healthy and now let's execute. what we promise we deliver, and we remain confident. tom: he talked about ai and products but in terms of

implementing just quantify that. can you put a number on the cost savings? >> triple digit million number and we do digital marketing to understand customers. we prepare about the next step and we have a copilot tool for developers. we can boost productivity and we are screening contracts. that is increasing our vision and gives us credibility because

s.a.p. wants s.a.p.. tom: in terms of what that means you are pushing through a restructuring. to what extent is ai replacing jobs? >> yes indeed, we have a voluntary program, people accept this program and he uses junk profiles. we are rehiring and that helps us to sustain in the years to come. tom: 28% backlog of client orders sustaining growth, to

what extent will you work through that? >> i'm sleeping better knowing we have a backlog. this is committed was a new -- revenue. that gives you high predictability, a lot of resiliency and we are confident we can sustain growth, so we are confident to meet expectations. tom: christian climate s.a.p. ceo, indeed. thank you very much indeed. to another update switching focus to the auto sector toyota

set to announce a buyback of shares from japanese banks as part of a repurchase plan. unwinding strategic shareholdings according to people connected with the details. toyota is up 33% and then in india the first budget led by modi so he focus on addressing demands to spend heavily versus pressure from corporate ratings agencies who want to make sure india's deficit is under control.

that is the finance minister presenting the budget. modi is there. offsetting may be needed and we will keep across that. alphabet is expecting a sales boost from cloud units in a recovery. investors will look for signs of progress as the company competes against rivals including microsoft. they have faced challenges. tesla reporting results today as they juggle a number of projects. let's bring in danny with the details out of hong kong.

tesla's second quarter sales were lower. sales have been falling. what are you looking for today? danny: second-quarter revenue and adjusted eps of $.60 per share in the backdrop is the sales number, second-quarter year on year basis so not much color. we knew this would be a tough year for tesla, downbeat growth so what can it do to stimulate growth? will they hear more about an affordable electric vehicle?

we were expecting a robotaxi and we will hereby october. stock is flat, better than it was months ago. tom: flat year to date, pretty marked in terms of the need for a catalyst so we will see if that comes through. porsche cutting revenue for the year, what is going on? danny: there is a string of bad news but it is blaming an act of god and will take a hit to revenue. that is down and the

consequences we may see fall in revenue since 2010 for the first time so not a good sign as it faces challenges and it abandoned its targets having 82% of sales being dvds. a big problem is the china market dispensed of its ceo so a lot of challenges on the transition. tom: danny lee on travails for porsche and outlook for tesla. really big day, indeed.

first half ahead of estimates, speaking to the ceo next and a view of french turmoil coming up. this is bloomberg. ♪

tom: emmanuel macron called for a political truce during the summer olympics. he dissolved the house of parliament leaving no path to a new government. he could wait until after the games to appoint a prime minister. a paris-based company reported earnings.

for more on results i'm joined by the ceo and we will get a few on politics. we will start on the earnings before we get to politics. in terms of numbers how does this set up the quarters ahead? >> very confident because the strategy bears fruit so if you look at the nobel's -- numbers you multiply all the numbers by two and you have our lending so it's been a good ride. when you look at the drivers there are a lot of tailwinds.

we are the every day companion for people at work and improve purchasing power of the workers and develop some corporate payment solutions. so stronger results and we are very confident. tom: i want your views on the geography, which proved most promising? >> we are in 45 countries and if you look at asia the labor market is very good and more

willingness for business leaders to go after solutions and latin america, especially mexico, brazil and argentina the situation is getting better knowing that we move revenue, those are countries of growth and then if you look at europe in fact southern europe does well. the northern part is doing well yourself -- more so, so you have room for growth. tom: on the -- on the -- on the politics of growth, the political impact, have you felt it? >> the month of june and july

are not good month because people are waiting for the new gouverneur and this is not good for the business. we are doing 60% of business in france and everyone in france would like to see more visibility on the future of the government. tom: do you have a gauge as to when you are bracing for political uncertainty? >> no, but the president asked for a truce during the olympics so new government will be formed after olympic games and it means

the current government is in charge and stability is the best so after that there will be a new government. tom: a lot of handwringing around this coalition but they would boost purchasing power of workers, which you benefit? guest: everyone agrees that giving purchasing power to the workers is a good thing so there is no political issue and we are use to working with the left or the right knowing everyone agrees for the working people. tom: you have been active,

pulled the trigger this year are there more that you are willing to add? >> we are engaged into the electrical vehicle revolution. you have access to 600,000 charging points in europe and we went further and faster by making the acquisition with a leading digital platform for the management of charging point because if you put yourselves in the shoes of managers we have to manage the fleet and charging point and make consolidation of data. we decided to make this acquisition to accelerate deployment in europe.

tom: ok. >> we signed a deal to be a software manager around europe. tom: ok. before we let you go, olympics kicking off on friday. are there perks employers will issue? guest: first of all as you know the founder of the modern the big games one century after 1924 the nation's welcome to the entire world and showcase our ability to manage these offense and for the workers, we saw perks to ensure the french nation has enough free benefit from worldwide events.

the other thing is sports is super important, the only asset you have is your health and health is food and also well-being and finally physical activity. tom: ok. >> i hope france will lead to incentive for fresh people to do more physical activities. tom: ok. ok. ceo in paris, thank you indeed. plenty more coming up indeed. this is bloomberg. ♪

♪ >> welcome back. investors sense that the white house race is closer, that is

playing out in terms of gainers, it sold off last week and did do in the session. look for details around the cloud and course search and how they are integrating ai. robotaxi, will musk give us details? coming up in the opening trade, the ceo of airbus at 8:30 a.m.. this is bloomberg. ♪

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

>> good morning from london, i'm anna edwards. here's what you need to know. kamala harris looks to unite the democratic party on the securing did enough -- enough delegates to become the democratic