that's all for this edition of "dateline." i'm andrea canning. thank you for watching. [music playing] >> they have regimens, routines. she loves them. welcome to "" my name is arabile gumede, and these are your headlines. european equity markets could see some upside momentum as principipals in spain, italy, a germany did suffer. now expected rate cuts from the ecb cuts tomorrow. and inditex shares pop as the retailer reports a 7% jump

in first quarter sales and looks to stand out amid fierce competition from chinese rivals she shein and temu. and prime minister narendra modi meets with allies to form a new coalition government. and cnbc learns that musk converted chips from tesla to x and is raising concerns among shareholders about musk's conflicting priorities. of course, we've been mapping out just how european data is pretty much looking ahead on that ecb decision anticipated tomorrow. a cut is ultimately anticipated for the market.

ultimately the ecb is saying they're comfortable with where inflation is on the trajectory of inflation. the question is where does the number go. these are final pmi numbers that are coming out today. so we're looking at the final composite number for the eurozone area, and that comes out at 52.2. that's slightly below the slash figure for 52.3 that we had on that composite data piece. the services pmi comele in at 53.2, slightly lower than the anticipated 53.3. business activity has expanded at the fastest rate this year. just to look at the composite numbers, as i said, 52.2 versus 52.3, and the services pmi at

53.2. the market clearly realizing that things are shifting along, a slight slhift in the euro/dollar. you can see markets ultimately taking a little bit of that in the currency's stride. like i said, we'll be headed toward that ecb rate's decision, of course. it looks like markets could be headed a little higher. half a percent on the up for the stoxx 600 so far this morning. the first rate cut since 2019. that's exactly what the ecb's expected to pull off tomorrow. it has been pretty much well telegraphed across this market spectrum then, and with a lot happening outside as well, markets will be looking out for anything that could scuffle that, and what happens post tomorrow's decision. we'll unpack all of that throughout the day. onto the european markets and the rest of the borders, some uptick across the board. not heavy, but certainly in the

positive direction, 3/4 of a percent higher in the swiss market. half a percent out of france. and 2/3 for a lot of the markets with the ftse 100, perhaps out of step of the rest of the maths. >> this is what's shifting things along when it comes to the sectors. banks are down a third of a percent. pretty much the only ones in negative territory. all the retail stocks have managed to move higher on the backs of inditex, of course, with the competition of sheen and temu affecting that. it seems like the owners are able to move significantly higher as well with their results. we'll unpack those as well throughout the how. now, we are counting down, like i said, to a couple of minutes, hours, days really to the ecb decision, but the central bank is expected to

deliver its first rate cut in almost five years as it manages easing in the coming months. the companies are split on the rate cut. they're on 60 points of easing priced in by the end of the year, according to lseg data. our next guest is joining us now to unpack this and really talk about the rate path a little bit more. i thank you so much for your time. i appreciate it. have you ever seen a more telegraphed interest rate cut ever? >> hardly every. they're very much focused on cutting rates tomorrow. >> is it surprised they're doing that? like i said, very telegraphed, very expected. but it's not as though europe is out of the woods in terms of growth. we're nought out of the woods in terms of inflation either. >> indeed. on the one hand, the ecb has said they're data dependent and

there's no precommitment to any packets. on the other hand they said very clearly they want to start cutting rates tomorrow. mon tai rateetary rates will st some time. >> we said it a couple of minutes ago. the ecb saying and really just speaking about the slovak academy. they report forward and he says inflation is on a good trajectory and believes the ecb is nearing the first interest rate cut. again, pretty much telegraphed from what we're making note of. is it because it needs a boost? >> in 2022, 2023, we had gdp

growth around zero. following that in the first quarter of this year, gdp growth has turned up. if anything, this is another argument for the ecb not to rush into a sequence of very aggressive rate cuts. >> if not a sequence, then what? what would they be doing this first cut for? what's the point of it? >> we're starting now. we think the first rate cut this week will be followed by consecutive rate cuts in september and december. it would go from 4 to 3.25. and then next year we'll continue on a quarterly path. >> if that happens, the divergence that you'll see compared to the united states, that's a bit worrying because if you have one or no cuts happening out of the united states and you have the ecb going along with three cuts, what does that do currency wise,

equity-wise as well? >> i think, yes, there is some connection between the fed and europe and the ecb, but we shouldn't stretch this argument too far. it's clear if the fed were to deliver only one cut or so, i think the ecb would not be able to deliver four cuts. but if we get one or two cuts from the fed, two to three cuts from the ecb is easily possible. >> what are you looking at in terms of round effects even now in june? not just moving on in futures. but what are the effects? >> i think in the short term, the impact would be very limited. it's not all about domestic inflation, labor market developments, wage developments are super important, and these things tend to move a bit more slowly. >> i was going to talk about those as well. that's actually been a key component to where we currently sit. if that doesn't ease as much as

madam la forwagarde would want, that put pressure on her to with hold cut this year? >> absolutely. i think dependence is relevant. service weight has a price for inflation. if it does not come down, we can't meet the overall target of 2%. so if they do not show in the next couple of quarter, that could indeed slow down the ecb. >> we can't claim to -- and yet one would think you would only begin cutting if you finished the job. you haven't finished the job. >> yes, absolutely. so unflags, currently 2.6%. we're now in a period where data tends to be bumpy, so a bit up and down. over the median turn, we still go down, but the ecb wants to

make sure it's going down in a timely manner. the exact pace would be data-dependent. in this guard, the ecb cannot make a firm precommitment. >> how much does this determine future rate cuts? just in general for lay later , you see an economy that's getting better in terms of inflation but suspect at the target, but yet they're willing to cut. do you think that changes the way central bankers looked a things, the way tools function, the effectiveness as well of interest rate heights? >> i think the ecb is committed to 2%. with rates at 4%ing we're very restrictive, so even after one or two rate cuts, we're in restricted rate territory. i think it still has credibility, but indeed data dependency in this very uncertain area of labor markets means the ecb cannot precommit?

>> so central banks have maintained credibility on the back of the sfiepike of interes rates? >> most did not expect this massive spike of inflation we've seen over the last two years. now it's to regain credibility and that requires a cautious monetary stance. i think for the ecb, they have credibility. >> caution along the road. thank you so much. i appreciate it. the chief european economist at ubs to unpack that telegraph by the ecb. lit's go to the equities. bayer had a 2.25 $2.25 billion . their roundup weed killer

callsed people to get cancer, arguing the trial was marked by errors. they intend to appeal, seeking to have the initial damages reinstated. now, spanish bank bbva has reportedly asked the ecb to organize its takeover bid for smaller rivals. that's according to reuters. bbva rejected an all-share offer in bid. the new bid, if successful, would include more than a trillion in assets. inditex grew while profit came in nearly 11% higher. it also announced a logistics plan with 1.8 euros over the next two years. charlotte is joining us for this one. despite the competition from sh shein, temu, et cetera, it's

affected everyone. >> it affects people buying spring or summer outfits, but it looks okay. the demand has been slowing down, even though sales were up 7%. a bit of a slowdown. one note that was particularly reassuring is the trading for the five-week period in early may or june was 20% year on year. again, positive signaling. there may be a demand for spring outfits, but certainly the comparisons were quite tough because it was a good, good quarter last year in the same period. net profit up almost 11% at 1.3 billion euros. they reconfirm the gross margin around 58 basis points. that's something they're announcing. they're pushing on with spending

their additional capacities. that's been the trademark of inditex. they're very nimble and very fast. they have a very close supply chain, so they control extremely well from executing it to delivering the products of the stores that do that really fast and really well. that's why we see the stores trying to emulate that model, having the supply chain quite nearby so they can control it ait. they're working on the flagship stores, closing the smaller ones, and improving their customers as well. they're pushing the market into the u.s. in particular. they've idendentified a lot of opportunities for growth, pushing into all of those markets. across the board, positive noise from inditex. up more than 5% today, and that's more than 35% over the

past year. >> that's a big rise on this one, particularly over the last y year. charlotte, did we find out what live shopping is? we sat that going what in the world is live shopping? is it just for people who are big on instagram, and how big could it possibly be for the company? >> yes. livestream shopping. through social media, tiktok, for example, people can buy while the event is going on. it's huge in other parts in asia, and they're going to start launching in the uk and u.s. >> is that like infomercials where you would see an ad on tv and for now you can buy it for this much and it goes for this much right now just by calling the number? >> for the younger generation,

gen z maybe, that's their teleshopping. >> anything to get sales back up. charlotte, appreciate it. thank you so much for that. now, coming up on the show, indian prime minister narendra modi fails to secure a clear majority, but we'll have more on this and the lesmaatt rket action next. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com.

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welcome back. now, indian prime minister nar narendra moe know moe modi failo secure the majority. he's on course to take 240 seats. that's well down on the 303 back in 2019. now, modi will have to rely on coalition partners to form the next government. that's after partiyies formed b the par la management was better

than expected. >> translator: on this blessed day, the democratic alliance is certain to form the third consecutive government. we're all very grateful to members of the public. the citizens show confidence. today's victory is a victory for the world's largest democracy. >> india's equity markets are staging a recovery after posting their worst one-day loss in nearly four years. yesterday, down 6%. today they're raising more than $370 billion in the market cap on tuesday. now, the benchmark 50-50 climbed as the election results started pouring in. let's head out to new delhi where our colleague tanvia joins

us live. when do these results leave the prime minister and some of these polarizing agendas? >> well, you said it, arabile. first, thanks very much for having me on the show. you said it. victorious but weakened pretty much is the position right now for prime minister modi at the helm as he looks to form the government for a third straight term. whether he's able to do that smoothly remains to be seen. arabile, right at the top -- right off the bat, i do want to get you some sound from the head of social media at the international congress who i managed to speak to just a few minutes ago and asked her whether the opposition-led alliance by the congress will challenge prime minister modi's government form nation at the

center. this is what she told me. >> i'm not how uncertain and uncomfortable people will be with mr. moe duh. like i said, possibilities are wide open for everything. the politics of india is going to be decisively different from what we've seen in the last ten years. there is no longer going to be the fantasies of one man and top-down approach. i think it's going to hifrmg on th the allied partners. i think the politics of this country is going to be decisively different from what we've seen. >> so according to her, it's not a done deal for prime minister modi and his alliance, however, if you look at the market reaction that you just pointed out for our viewers in europe, that highlights the fact that it

seems like the market is feeling a little more comfortable about the situation at the center with an important alliance member, sending out strong support to his lines at the center, and that may give them a more steady run as thaw look to form the next government. now, this issue has led to a lot of introspection in new delhi because people are asking what happened. the exit polls got it completely wrong. it's raised five important questions to my mind about the economic future. number one, why did he disappoint borders? >> part of it could have to do with border fatigue, some could have to do with anti-sentiment

and part of it could be about donations made to political partds. that hurt sentiment and hurt modi's alliance. what happened to the agenda is the second question. does the modi government double down, breaking long-pending reforms or step back and the reforms get stalled because now the allies have more leverage. the third question is will foreign investors lose confidence in india's growth story despite strong gdp numbers. you have to remember over the last 14 years. who has formed the government at the center. india's rate has been around 6% to 8%. it still looks pretty stable. the last two questions are, one, what's happening to the upcoming budget where we're expecting tax breaks given the newly formed

alliance by prime minister modi and the last is how important will the alliance members be to ensure a smooth governance over the course of the next five years? time will tell. >> time will certainly tell. one thing is for sure. these coalitions can certainly be quite difficult to put together and can be quite tenuous. thank you so much for that. i appreciate it. coming up on the show, we'll head out to berlin and the super return summit where annette has a special guest, managing director, head of originations at golub capital. joins us after the break.

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kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com. i'm arabile gumede, and these are your headlines. european equity markets seeing some upside momentum. growing at its fastest pace in a

year, with the focus now turning to an expected rate cut for the ecb. that's tomorrow. inditex shares popping as the retailer reports a 7% jump in first quarter sales looks to stand out amid fierce competition from chinese rivals shein and temu. and india's nifty fifty stages are looking. they prepare to meet with allies, all aiming to form a new coalition government. intel rises premarket. that's after selling a 49% stake in an irish venture, all in a bid to bring in funds to bring it back in fashion. he plans to outline his plans. >> the first piece is to get back to leadership. all of it is associated with

unprocessed technologies. the processed technologies aren't as good as some of the alter alternative. so while we are indeed headed toward that ecb decision on whethermadam lagarde and the ecb will cut rates or not, the anticipation being they would cut by 25 basis poimtss, the trajectory is what else happens after that. the uk is another matchup. the bank of england is looking to try and cut rates at some point this year, wanting to do so to try to alleviate any pressure that has enabled itself to get out of the recession. it has been can they do enough. does the data allow. because they've also been very d data-dependent. this is what you're seeing in the final composite figure. slightly higher than the flash figure of 52.8.

you're seeing the number come in at 53. slight improvement on that front. they're continuing help in terms of data front, to help the bank of england to say, well, the economy is faring a little bit better. maybe we can begin that cutting cycle. final services, pmi, in line with that flash figure then. you're seeing sterling come out at 127.70, pretty much in a range in particular for the sterling/dollar. that's been one we have been looking at too. you do have an election coming through out of the united kingdom july 4th then. so just about a month to go pretty much up until that happens. what happens to the markets overall? it's going to be really interesting to see whether the greenback pushes back on with rate cuts. still anticipated this year, albeit one, maybe a half. this is what you're getting out of the market then across europe

today. we have seen a slight uptick in things. even out of the united states, you saw a muted but winning day across the board and that's helped to propel markets out of asia and a few markets particularly out of europe. it is only just in the green then pretty much for the ftse 100. 0.7 out of switzerland. 7% out of the dax as well. that's pretty much what you'll be getting. contact 30 will be higher, 5% to the good, in fact. and that will be one we'll be looking at. seeing that sales growth go up 7% despite a slowdown. they're still managing to get sales higher and investing in sales. here's your fx market. we've seen the sterling/dollar come out at 127.70 then, in and

around that range. mostly flat. the euro/dollar seeing a slight bit of weakness following the eurozone number. also expansion in retail, enough to give clarity and a full steam road ahead for the ecb to be able to cut rates tomorrow as is anticipated. we've just heard out of the slovak economy, ecb slovak minister speaking about how you can get that cut and it seems as though inflation is headed in the right direction. so that's why they're pretty comfortable with that. 156 is where you're seeing the dollar skbenagainst the yen the. perhaps some strength coming through for the japanese yen. here's your european yields and treasury picture as well. just out of europe as we head toward these cuts anticipated out of the ecb, you're seeing the 2.54 1% mark dipping for a

seventh consecutive day. you did have some of that. germany's jobless rate came out a little more than expected. you had italy's pmi numbers contracting at the steepest pace this year. you did see a slight drawdown in the 10-year. 3.56 is where you're seeing the italian 10-year right now. out of the uk, 4.21. out of the states then, taking a look at treasuries, the stage, the longest winning streak in just over three months. 4.79 is where we're at there. just remember that we were nearly at 5% at some stage over the last week or so. 4.95, 4.96 is where you would see things there while on the 10-year, 4.34. on to the u.s. futures, in terms of the data, we had the jobs figure come out. that reading was pretty much the lowest jobs reading in over

three years. 8 million there is the mack you see there. what's next? markets will be digesting the lowest, that data, plus the payroll numbers. they're out later today, and ahead of the jobs report, that's set for friday. a bit of green out of the united states a little bit later on. now, a change in rate expectations have increased the focus particularly on the global deal-making space as the sector looks to rebound somewhat. now, annette does join us from the world's largest private equity conference super return. it's happening in berlin with a special guest. annette, i'll hand it over to you. >> reporter: thank you so much. that event is called private equity gathering. in general it's like private capital. it's growing tremendously over the last years. that's exactly what we're going

to talk about with the managing director and head of european operations. thank you very much for joining us. >> my pleasure. >> we're saying private equity has become such a hot topic and lots of money is pouring into that space. how does it compare to the environment? >> it's competitive for sure. there's a lot of money coming into the space, but it's an attractive asset class. yields are attractive, especially where they are today. a lot of money is coming in because it's a pretty good risk return proposal for our investors. >> if you say attractive yield levels, what yield levels are you targeting? we know from the equity side of things it's roughly 20%. what is your target? >> we target more in the low teens and mid teen levels. >> look at the industries.

currently lending two or so, but do you see a trend here evolving? >> absolutely. if you look at the private equity industry, there's about 2 trillion dry powder that we're sitting on right now. the private industry has been mirroring that expansion. as we evolve over the next five years, private industry will continue to grow. our approach is we're looking to lend senior secured loans to companies backed by private equity sponsors, so, in fact, mirroring that ecosystem. >> creativity is also probably the main drive of your business, and that's been slow over the last year or years i should say. is that expected to pick up soon? >> i think there's a lot of tailwinds that point to it picking up soon. whether that is quarter three, quarter four, quarter one next year, but if you think about the level of capital that needs to be deployed by private equity,

there is actually a case made for fund-raising, must distribute much back to lps needed to acquire to sell to companies, so once the bid narrows between buying and selling companies and people are at a point where they can see deals flow, we'll see that. we're statin i ing to see that already. >> do you think like other uncertainties are also weighing on like sentiment when it comes to daring to do acquisitions? >> you know, to some extent. but when you think about how we un underwrite a credit, we underwrite a credit with a variety of scenarios in play. what could go wrong. we like to play for the longer game where we want to understand to the best that we can all

eventualities. we want to be weather-proof if you will. so it's a case of, you know, the base rate being high, does that put you off, putting debt into a business you're acquiring. well, no, they're floating rate loans. we understand they will reduce over the next however months, quarters, years. it's a case of when they will reduce in terms of serviceability. i think people are very aware. they're very aware of how those economic factors will feature into the underwriting of the businessies from a loan perspective and others as they make their upside. >> rate environmental is a big topic here on the ground as well. so how is it affecting your business? >> it's two-fold for us. from the investor side, we're delivering very nice returning for our investors given that it's a floating rate product. on the other side of things, we have to be cautious.

can we support this level of debt we're putting in and can they service interest payments? they're spending a lot of time to make sure the robustness and resiliency of the businesses is something very real and something we can stand behind because we're not distributing the stuff. we're holding it for a long term. >> is that why the industries is a preferred part of the business, where you put your money into play? >> absolutely. you think about you always prefer to lend to a business that doesn't start at zero every january. so if you look at a software business, one of the biggest things we look at is the churn of the customer base and where that starts on day 1. if you have a pretty decent level of revenue on day one of january, it gives you that comfort when you're underwriting a loan that the dead can be service and that there's a solid sticky nature to that business

and a reason to live. >> do you have a preference for a region in europe? >> no, we don't. so we work across western europe primarily. we open the doors in dollar capital in europe in 2020, so relatively new expansion for us. so we're still very much, you know, figuring out, you know, the expansion, i guess strategy for the firm over here. what we've done very, very successfully in the u.s., we're starting to speculate. we're taking our time. >> terrific. thattic you very much. and good luck. >> my pleasure. thank you very much r back over to you. that wraps up our live coverage from the super return at least for today. >> thank you so much, annette, for all of that interesting note as well. indeed, the deal flow certainly beginning to pick up. how sustainable will that be? we'll unpack that for you.

coming up, we'll be line on the f the ground at 2020. we'll be joined by the president of ripple. that's a first on cnbc conversation after this. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at

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welcome back. now, intel has agreed to sell a 49% stake in a venture that controls a chip fabrication plot in ireland. that's to the firm polo for $11 billion. it's in a bid to regain market share. the company launches its next generation server processors. it says its new ai chips will be priced below rival offerings. emily caught up with the ceo of intel at the come pew tech summit in taiwan. >> it's the biggest ever in

terms of scale and attendees with many of the top executives taking part. and it's all about chipmakers launching their ai chips to power the next generation of computers. intel comes up with its announcement. pat gelsinger expects 80% of pcs will be ai by 2028, adding that intel is positioned to service the ai continuum. competition is fierce, and i got a chance to sit down with the intel ceo and ask him about how he is defending his market share. >> the first piece is to get back to leadership because a lot of it is associated with having process technologies, where some are not as good as some of the alternatives. >> he took a swipe in his keynote address at the weekend saying even at the best of

times, moore's law cannot compete with nvidia chips. he implied the chips are not powerful enough and they need to move on. pat fired back regarding jensen's remarks, and i asked him about that. >> jensen has made statements moore's law is dead. intel, founded by the guy who first drived the moore's law, we believe it's alive in well, and in that, you know, we believe that the technologies and as i like to say until the periodic table is exhausted, we're not finished. >> one thing in kmep with all the chip bosses is their acknowledgement of the central role they play. intel will mark 40 years in taiwan next year and pat is already planning to come back for the party. reporting live at computex in

taipei, i'm emily. elon musk told nvidia to divert ai chip orders from tesla to x. he also exaggerated the ev maker's procurement of ai processes to shareholders. according to emails. one said musk's social media posts about $10 billion conflicted with his actually booking. elon musk himself said in a social media post the chips would have sat in a warehouse as tesla had nowhere to send them. so here's the big question then. if you're invested in tesla, if you're investinged in elon musk's businesses in any way, do you see tesla then being pryor titled ultimately as a business from elon musk?

he has his hands in many pies, so to speak. and this tesla pie, which is usually seen as pretty much the crown jewel within his portfolio is the one he would like to have more ownership in so he could spend more on. you have the pay package that they're getting a vote on. all of that, if you wanted investors to actually vote positively on that, well, they certainly won't do it if you're taking away the same iowa chips can and the same ai advancement and now you're putting it away elsewhere. so is elon musk robbing peter to pay paul? i want to get arjun's thoughts on this one. he's at the 2020 conference. before we get to your guest, just your thoughts perhaps on

this one. i reckon he might be robbing peter to pay paul on this one, and it may not necessarily bode too well for tesla, which has been struggling. >> good morning, arabile. there's two things to say, there's a lot to say, but two things to say. one this speaks to elon musk being distracted with all of these different companies he's running and not putting enough effort on tesla, something the shareholders have leveraged on elon musk. the second is many were bullish. actually tesla will be the leader in autonomous driving and cars, in robo taxes and everything else to do with autonomy, and that relies on the critical nvidia chips. if they're not getting there, what does that say with the efforts around ai training? that's the big question mark for this story. back to money 2020, we're here talking about crypto.

crypto is back this conference given the fact that bitcoin is hovering around the $70,000 mark again. it's been an interesting one. it had been an all-time hit and it seemed like they dragged forward some of that demand. have we reached the peek for this cycle in the crypto markets? >> i think that there will be, you know, more influx of institutional interest into the space. blackrock has been the 800-pound gorilla and trained with the bitcoin etf and now with the etf cleared in the u.s., i think we can see more understand substitutional interest in this space. >> it seemed like sort of a seminole moment and there was a lot of talk about investments. cog in to krupp toe.

are you seeing more traditional players wanting to enter the market via the etfs? >> absolutely as well as the organization of real-world assets. that's something we're seeing from major banks like companies. >> how significant do you think that will be? will it be as significant? it's the second largest, but a second market cap and perhaps not under as well. >> i think the market awareness and education of what's happening in crypto is increasing and expanding. i think that we can see more stories and narratives around the ecosystem of activity that's being developed on tom of ethereum. we can wait and see what happens. >> i want to move on to ripple.

you made the big announcement earlier this year around the ripple stablecoin. why. >> so u.s. dollar stablecoins are a ma u superior market. stablecoins overall are $160 billion in market cap. you see projections of this market reaching about $3 trillion in the next four to five years. one is to hold u.s. dollars in various parts of the world. two, for payments, which has been the core of our business for many years. so the reason we're entering this market is we see demand from our customers, financial institutions of various types, who want to use blockchain for more efficient global payments. i want to do it using the u.s. dollar staple. we have a ten--plus-year legacy of being a trusted compliant player. i think we're a great candidate to bring a trusted u.s. dollar

stable to market. >> a lot of people wanted me to ask this question. when did you want to launch it? >> we're working on it right now. >> is it likely going to launch this year? >> likely. >> have you begun buying assets to back that up as well? >> we're working on all of the things we need to do in order to bring the product to market. so everything from the banking relationships to the distribution relationships to compliance p that's number one for us, making sure we're abiding by the rules and regulars for the jurisdiction. >> and just the relationship between the point in terms of the cross border. if you've got the stablecoin, is there a need for xrp in this mix? >> absolutely. we use a mix of assets to serve our payments customers, so including stablecoins as well as xrp. the use case for xrp in particular is as it was envisioned by the original

creators of the creator and xrp. that's for the long tail of currency pairs. we're talking about globalization of other assets. in the future, when you have new types of assets, having an efficient visionary asset to make any -- any paraliquid is important. >> do you expect any xrp etfs to pop up? >> i think it would make a lot of sense. only xrp and bitcoin have clarity and status in the u.s. it's been a top ten asset by market cap and top five if you look at daily traded volume. and so that would make a lot of sense. >> narng you so much. that was monica long, president of ripple. back to you. >> thank you so much. we have been following news

out of india, just to give you a quick note here. indian prime minister narendra modi has submitted his resignation. that's the cabinet recommended the dissolution of parliament's lower house. let's note that narendra kmodi will be sworn in saturday. question marks will be around. how will his agenda be set forward? we'll cover that for you and a whole lot more including markets. don't forget we have the private payroll numbers out later today. for this show, my name is arabile gumede. "worldwide exchange" is coming up next.

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it is 5:00 a.m. at cnbc headquarters. i'm frank holland. here's your "five@5." private sector payrolls today possibly giving more insight into what appears to be a cooling labor market. and could we be seeing a software rebound. hp reopening. will the move be enough to catch up in the ai trading frenzy? lululemon with its results in the second qute