that's all for this edition of "dateline." i'm andrea canning. thank you for watching. ♪ welcome to "street signs" on this thursday morning. i'm silvia amaro and these are your headlines. european equities open ahead of the july 4th holiday while in asia, taiwan and beijing benchmarks hit all-time highs. and the auto parts maker says robust demand will offset

slow demand in europe. new polling with the hung parcliament in france and the fr right falling short of the absolute majority ahead of sunday's second round vote. and joe biden is torn whether to step aside. welcome to "street signs," everyone. european equities have been trading for over an hour. we have the stoxx 600 up .40%. however, we think about some of the performance this week and it has been a bit of a mixed picture. however, today is important to keep in mind that the u.s.

markets are closed and, therefore, thinner trading today. now, just for context, the stoxx 600 actually gained .7% on wednesday and we are continuing that positive momentum today. i have been telling you how many things are on the minds of investors and there is one key theme today. that is the latest data out of the united states that has propelled investors that we are on track to see at least one rate cut stateside. that is sis driving momentum to. let's look at the boards in europe as we look at the specific dynamics. looking at the cac 40, it is trading higher by .60%. yesterday, the cac 40 gained 1.2%. of course, we are approaching that key critical vote on

sunday. at this stage, polls are suggesting that the far right will not obtain absolute majority. there are questions of what a hung parliament could mean for the fiscal position for europe's second largest economy. over in germany, the dax is higher by .40%. another important theme out of germany today is the expectations that we could see a breakthrough with the budget negotiations. some reports suggest that could be concluded by the end of the week. it is important to see the spending plan for germany. this is the first fiscal rules to be applied. it is important to understand what it means for france and germany. i want to look at the corporate stories this morning. we have autos. the out performer trading 1.3%. one of the main themes when it comes to autos today is tariffs that the eu could apply to

chinese automakers. we are seeing the german auto industry asking the eu to drop the tariffs. one spokesperson told me from the european commission that the conversations with chinese authorities are ongoing. let's see whether they will come to agreement to avoid application of the tariffs. however, that is not the case for the time being. when it comes to banks, they are trading higher by 1%. i also would like to mention to you telecoms. i'll have more details for you on the show. ericcson could have implications for the broader sector. when it comes to health care, yesterday, i was telling you how there was pressure in the market because stateside, lawmakers are suggesting that companies that novo nordisk should cut the prices of the weight-loss drugs, but on top of that, we heard

from roche and we will have those details in just a moment. i want to take you to asia because it is an interesting trading day today. we are tracking a 27-month high for some of the benchmarks. i want to take you specifically to japan because the nikkei 225 ended the session higher. it actually hit an all-time high at one point. that has been propelled by the moves in the auto space and banking space and tech with investors looking at the talks and believing that the outlook for the corporate earnings is good. however, when you think about the bank of japan, also keeping in mind they are meeting at the end of the month and the ex expectation is they will have a rate hike. thinking about the u.s. close because today we don't have the session on wall street.

at this stage, when you think about what we saw yesterday, it was a relatively strong day on wall street. when you think about some of the tech names, nasdaq, for in instance, ended the session up .90%. on the week to date, we see the nasdaq ending the week up by almost 2.6%. some significant moves in terms of the tech space. yesterday, we did see tech out performing by 1.5%. i want that take you to the other developments stateside. because yesterday we had the minutes from the fed. officials are on the search for greater confidence that inflation is sustain bably headg to 2%. according to the minutes from the latest meeting. the phrase greater confidence is

mentioned four times in the ten-page document and with the recent comments from fed chair jay powell. the fmoc officials left the june rates unchanged showing one cut of 25 basis points by the end of the year. to discuss this more, we have tim from m&a global advisors. good morning. >> good morning, silvia. >> i would like your thoughts on the minutes from the fed. four mentions of greater confidence line. >> yeah. >> what else do they need to see to gain this confidence? >> probably two more inflation points that look normal-ish or soft i softish after the q1 inflation data. they need to take out the additional hike or two they had in the dots. a couple months of inflation

data which is really important. don't forget about the labor data. it may be one inflation data report they need to see before easing. the dual mandate is now in play. >> the recent data does suggest that we are getting that cooling in the rest of the economy. not an aggressive one that should make us concerned about it, however, why is the fed not confident to advance to go on the rate cuts just yet? >> economic data, i think, in general since the pandemic is all over the place, really. market data is no exception to that. the rise in unemployment is the labor fource. people who left and came back. unemployment has risen. we want to be cautious because big spikes in unemployment are preceded by slow rises in unemployment. i think that's why they're cautious, but cognizant that

unemployment is rising because of supply side factors and demand side factors. those are hard to decide. >> how much of a problem is it, the revisions to the data? i was actually reading some commentary around specifically the adp private payroll number and how many times it actually gets revised. how can you read what's what's happening in the u.s. economy? >> i think that sis a problem. adp is a specific case because they update on a yearly basis. they look how trends may be changing within the data point, but they don't take the headline number too seriously. we tried that for many years and it has not been a great predictor of non-farm payroll. you have it take this with a degree of caution. >> what are you expecting tomorrow?

we will get non-farm payrolls. what do we get next. >> the consensus estimate of 200,000 jobs is commence rat enough to keep it steady over the last year or two. jobless claims look okay. they are slowly rising. it's the quits rate with the jolts survey and the hiring rate. those are back to pre-pandemic levels which wasn't unhealthy. it suggests this cooling. the consensus forecast, i have no real reason to quibble with that. it is not weak, but not as strong as last year. >> let's talk about the u.s. dollar. what is the outlook for the greenback at a time when you are trying to understand what is happening in the economy and you also have this uncertainty with

the u.s. politics scene? >> i think for the near term, we are constructive on the dollar against more currencies because of the higher for longer rate dynamic. it's not so much the dollar benefits from the carry perspective from other currencies, but it is expensive to sell, especially against a lot of the g10 currencies. relative economic performance. the fed will rate until september before thinking about a rate cut and other central banks have started that. the relative economic performance has further to run as well. >> ultimately with so much noise, where do you hide? where do you protect yourself at this stage? >> i think the approach with institutional investors we tracked with the bar

barbell approach with the 5% to 5.5%. you can roll with that and do well with that. you have also seen them flock to tech stocks. they offer you quality strong earnings growth. so far, they managed to live up to expectations. really barbelling those two risks has worked. you have a valuation constrained on equities. they look frothy. you could see pullback. over the long term, the companies will thrive in any growth environment you see in such of the dominance of the market share and ability to generate high quality earnings growth. >> interesting. you did not say safe haven. it is interesting to see it as one. >> it's high quality. it's not safety, not by a long shot. there is quality backing them.

they have healthy balance sheets. they're cash rich. they're earnings the yield and that is a benefit as well. they are safe companies, even if they are not safe havens. >> i want your thoughts on europe as well. you are staying with us. in the meantime, i want to just hand you back to break. coming up on the show, we are looking at the german coalition and they come under scrutiny as it looks to finalize their next budget. we'll discuss this after this break.

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welcome back to "street signs." let's look at germany. industrial orders unspexpectedl fell for the fifth tri-straight month in may. the monthly fell 1.6% compared to april. looking at some of the corporate stories this morning, continental shares are trading at the top of the stoxx 600

after the german maker said sch chinese growth will counter balance the growth. that is according to the german press with the country expected to be the main driver of growth in the second half. roche plans to hoalt a drive an after the loss of efficacy. you can see on the screen how shares are trading so far in the session. in the telecom space, ericcson will bill a $1.1 billion impairment in the second quarter amid lower than expected growth at the cloud unit. last year, the company recorded a $3 billion impairment charge in the third quarter citing a slowdown in the core markets. in the political scene, chinese president xi jinping made a call to the council president according to chinese

state media. his country is willing to deepen strategic ties and enhance trust with europe. germany's government has blocked the sale of the volkswagen gas turbine business to china citing security concerns. the economic minister said it was meant for public order. it respected the decision and would wind down the turbine developments. in the auto space, the ev commission is urged to drop the tariffs on electric vehicles imported to the eu. it said tariffs would hurt a european carmakers which could hit the german industry. just taking a quick looking at how we're trading with the auto names in europe. looking at the german automakers, volkswagen is trading higher by 1.3%.

mercedes up around the same levels. we saw some of the names lower in the wake of the announcement from the european commission. they have recovered somewhat. since we heard the eu and officials in china saying they will have conversations. those are taking place as we speak, really, to try to avoid these tariffs. of course, we know there is a lot of pressure from other parts of the eu, particularly in france, to go ahead with these measures. looking at the budget in germany, the government hopes to deliver a draft budget as soon as friday hoping to put an end to the political wrangling. the german government is under scrutiny following the eu elections. berlin set a new target of july 17th to sign off on the budget

hoping to sign it into law today. germany's parliament authorized 6 billion euro of the advanced equipment which is including tanks and air defense systems. let's take a look at some of the defense names and how we're trading so far in this session. rhein is up 1.6%. they did say they reached an agreement with leonardo in italy for more production. lee leonardo shares are trading higher at this point at 1.3%. we know this is an important sector as the geopolitical tensions continue. of course, we hear more european officials suggest we need more production across the bloc. we have our guest still with us. thanks for that, tim. we are talking about the u.s., but let's look at european markets, too.

>> sure. >> when you think about germany, is there a sense that markets are actually ignoring some of the risk out of germany and just, perhaps, too focused on what is happening in france at this stage? >> i don't know if i would say they are ignoring all of the risks and i think france is important with the movement that has found sufficient headway and will become part of the parliamentary system to a far stronger degree than before. that introduces risk premium. that has to be accounted for and that is the main focfocus. it is still relatively centrist or degrees of centrisity. i think it is appropriate. >> let's look at the potential ramifications for the market with the vote in france. at this moment, it suggests it is a hung parliament.

what depoes that mean for marke if we see an ungovernable france? >> there are no gray options. >> it's not good for the fiscal front. >> no, not really, but france has space. of course, they are subject to budgetary con straits. thinking about it in context of the u.s., the cohabitation by one congressional party and the leader by another party happens. i think the markets rightly sign that risk to french debt and german debt. it is worth 15 or 20 basis points. the political volatility is quite relaxed. the strongest bond blows have been into o.a.t.s. i think that risk is fading.

although there are more premiums and the budget negotiations are fraught with the leader and the parliamentary bodies, it doesn't mean that france is leaving the euro. you don't need to see that much higher risk premium other than what has already been accounted for. >> let's talk about the euro. it did rise against the u.s. dollar. however, when you think about the pair, whereis the biggest pressure coming from? you need to think about the u.s. dollar. ultimately, is the biggest part of the pressure when you think of the euro-u.s. dollar coming from europe or the united states? >> i think it is down to u.s. rates and the differential between the two. if we take a step back and lack look at the chart over the last year, it traded at 6 or 7%. that is with the rate markets moved around dwquite a lot. you have seen spreads widen here

and there. that will be dominated by u.s. rate expectations and what people think about the fed. it is not that european rates don't matter, but mostly matter in terms of effecting the currency. >> let's look at the divergence of the two central banks then. ultimately, one. que of the questions is the difference with the ecb and the fed. how much lee sway does the ecb have in this case? >> i don't think -- >> is that two cuts? >> i think one to two or two at the most this year and the rates getting back to neutral. because the rate level is lower ultimately means the easing cycle they could take is more limited than in the u.s. the distance europe has to get rates to neutral is a lot smaller. i would say 75 to 100 basis

points. if the fed has to go, which is possible as we talked about last segment with the slowdown in the labor market is a sharp slowdown in the labor market, the fed has more room to cut. that weakens the dollar. i don't think we're there yet. i think the fed has far more scope to ease if they need than the ecb does in terms of thinking about where rates get to neutral. that's maybe another 75 to 100 basis points for the ecb. it is double that for the fed. >> interesting. more maneuver for the fed. let's see where we are in terms of potentially seeing a deal in germany for the budget and throughout this week, though, when you think about france versus germany, the gap between the ten-year yield has narrowed. ult thimately ultimately, what will happen next week with the outcome of the french election? what will we see in terms of the

debt picture? >> in terms of the spread, one-third of the spread has gone away. i suspect 15 or 20 basis -- that's off. five to ten. there will be a bit more premium because the political risk. there is additional risk premium that needs to be in french debt. a hung parliament is the least bad outcome. you will see lesnar owing. >> we will see. we are all excited here. we have so many outcomes. thank you, tim. tim graf at state street global advisors. coming up on the show, the polls suggest the far right could come short of the parliamentary elections on sunday. we'll have all the latest after this break.

welcome to "street signs."

i'm silvia amaro and here are your headlines. in asia, japan antd taiwan' benchmarks hit all-time highs. and the auto parts maker says robust chinese demand will offset sluggish demand in europe. new polling predicts a hung parliament in france and the far right falling short of absolute majority following the second round vote. and nbc reports joe biden is torn over whether or not to step aside. as we approach the second round and final voting in

france, the party of marine le pen is expected to fall short of the majority in sunday's election, according to the latest polls. of course, charlotte continues to follow all of the twists and turns out of france. charlotte, do we have any more clarity as we approach the vote on sunday in terms of what we will see in the parliament in france? >> it's complicated. it's interesting because the harris poll is the first one since 200 candidates dwindled down. this is showing the far right is further away from absolute majority. reinforcing the hung parliament coming out. it looks to have 220 seats, away from the magical number of 289 you need for the absolute majority. now, again, we have to wait and see what it looks like and the carryover votes will not be automatic as we have discussed

the past couple days. the carryover votes is the socialist agreeing and the macron party is agreeing. the far right is looking more complicated and a more 50/50 against the far right. we have to wait and see what it looks like. certai certainly, in a way, the dropout of the candidates looks like the election. the far-right candidate or not the far-right candidate. emmanuel macron said this is a moment of clarity for the voters in france. as you were saying, it gives a blurry picture because it would be a hung parliament with no one having a majority. we are still hearing from the candidates on the final day of campaigning. they each had a one-hour interview live on french television. they focused on the economy and we heard from the prime minister

a minister. >> translator: what we know is if the far right get an absolute majority, they will put their economic plan into place. i remind you their plan was described by representatives of all business leaders from big companies and small and medium-sized enterprises as a an can task can task trophy to destroy jobs. >> translator: we can do things more widely. i think certain citizens pay too much tax on what they earn and others don't pay enough. our plan has been assessed precisely by nobel laureates. 300 economists believe in our pro program. >> translator: i'm telling business leaders to raise salaries staff by 10%.

this 10% would be exempt from tax contribution and that allows a long-term rise in wages. the difference between me and my opponents, i don't give money i don't have. s>> if you don't vote for us, these are the people that will lead politics going forward. that's what's at stake here in the election. here again, very difficult to project what the result would look like in the second round on su sunday. tricky picture on monday. most likely, a hung parliament. that opens a new question in france and we never had this situation. it is extraordinary to see a lot of people mentioning a grand coalition. something that is out of french tradition. out of italy or germany. interesting to see if this is a reinvention of french politics or not.

>> one way or the other, this definitely is reshaping the political scene. let's discuss this more with the analyst at ipsos. charlotte continues to join us on set. thank you for joining us. first, i would like to understand what the data available thus far can suggest and tell us this election versus previous ones. are we in the moment of a political reshaping of politics in france? >> yes, probably. the hung parliament is not a new thing since it was the outcome of the 2022 election. the problem is it proved to be unmanageable and so contrary to our political traditions that we have been, so far, to work out something to have people behave more responsibly in parliament.

the outcome next sunday would be it would be even more difficult to make the parliaments workable. for the moment, i think that's what we clearly see is voters never intended to give an outright mandate to the national rally. probably, the national rally is the most popular bloc, but still far short of the outright majority and probably never came close in spite of the operations we might have. i would say it is a bit like trump who never had majority in the u.s. and still weighs so heavily on the political system. the same applies in france. we're in the situation where the political landscape is in

turmoil and also can't really work any longer, at least, by the old rules. >> so. what would a hung parliament look like for the next election in 2027? is this paralysis or chaos in pa paris? what does it mean for marine le pen in two years? >> you are asking a really good question. is the mess benefitting or not to potential presidential candidates in 2027? one thing is certain, the french will probably completely lose patience with these political bloc blocades. the situation needs to be different two years from now. what will political parties do to make it different is still very uncertain.

as your analyst says we are in a situation so far from our traditions and habits, that it is very difficult to adapt to the new situation for every stake holder. marine le pen said she didn't want to participate in any government. she clearly wants to preserve her chances for the presidential election, but if the situation is so complicated that urgent action is taken, it's not absolutely certain it would be the wisest strategy because it's ei either/or. whoever he or she is to take charge of taking us out of this mess could, of course, take credit for that. >> sure. so, we've seen the vote grow over the past few elections and

getting bigger and bigger. it feels it was a rejection of institutions and globalization. it looks like they mademassive wins around young voters and women, in particular. can you give us a picture of who votes for the national rally? >> everyone. it is definitely now a stronger party with the least educated part of the electorate. they have always been more successful with people without college degree, but, once again, it is not specific to populous in france, but specific to populous around the world. but they made considerable inroads with young people and women and more educated people. it used to be a party of the shop keepers and blue-collar

workers and they made inroads of white collar workers as well. >> i would like your opinion because it hit the highest since 1 1996. are we likely to see similar turnout? >> it is difficult to say. it depends on the political offering in over constituency. i would say there are configurations which probably would lead to higher turnouts and others that might conversely lead to lower turn youts. it all depends on the popularity of the candidates who withdrew and the discipline of the voters who would have voted for the withdrawn candidate. typically, we can expect some discipline on the part of the left-wing voters because they are very -- they are still very

keen on preventing the national rally from rhaving a majority. i'm not sure it is ascertain as far as more moderate and more right-wing voters. they might have more -- they might hate it a lot more before choosing what they still perceive as two evils. >> we will see what happens not long from now. that is the analyst at ipsos and our own charlotte reed. l the leader of the german coalition has ruled out the election next year. the current leader is leading in the polls and he would not move a millimeter on the issue and was surprised that the conservative party was considering a similar deal in

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welcome back to "street signs." let's look at the united states where the group of governors are following joe biden after the shaky debate. biden met with some to calm fears calling from two lawmakers to step down from the november's presidential ticket. nbc news sources say biden is standing with his family and al allies. alice barr filed this report. >> reporter: facing pressure over his future in the race, president biden and vice president harris meeting with democratic governors. >> we know we have work to do. we know as we are standing here

we are behind. >> we pledged our support to him because the stakes could not be higher. >> reporter: that after the president rallied campaign staff in the all-hands call telling them, quote, i am running and nobody is pushing me out. the white house press secretary r reaffirming that. >> he is moving forward as being president and moving forward with his campaign. >> reporter: he is reassuring as an effort to ease anxiety and tamp down calls to end his re-election bid after the di disasterous debate. >> he has to show the american people he can do this job. he can't be wrapped in bubble right now. >> reporter: the number of democratic lawmakers publicly calling to replace mr. dbiden o

the ticket is increasing. >> it may do a great deal to restore confidence. >> reporter: a new cnn poll shows vice president harris polling better than biden, but the difference is within the margin of error. >> joe biden is our nominee. we beat trump once and we'll beat him again. period. >> reporter: seeking to steady the ship. the new new york times college poll is adding fuel to the fire finding president biden trailing former president trump by nine percentage points among voters. the poll was conducted after the debate and shows mr. trump widening his lead compared to a times poll from before the debate. in washington, alice barr, nbc

news. >> let's just breakdown what we heard from the latest numbers. the new york sometimes sienna college voters show trump with a healthy lead over joe biden. the gap was slimmer with biden on 43% to trump's 49%. a separate poll from wall street journal continued the trend of biden trailing the former president 42% to 48%. also outside the margin of error. a brief look at the markets yesterday. today, they are closed for july 4th holiday. yesterday, however, was a strong session where we saw major indices ending the session higher with the s&p and nasdaq posting fresh all-time highs and a lot of interest on those tech stocks. we are looking ahead to tomorrow's all important

non-farm payroll report as well where economists expect employers to have added around 200,000 jobs in june. the unemployment rate is steady at 4% and hourly wage growth is expected to ease slightly. to discuss what is happening on the economic front and political front, mike gallagher, the director of research joins us. mike, let's look at the politics. what is the potential implication here for markets if joe biden decides to step aside? >> i think the markets would actually look at who the likely alternative was and whether they would actually make up the shortfall versus donald trump. at the moment, the opinion polls have pushed somewhat in trump's favor. those have been the calculations that will be made. the markets also know that a new candidate, most likely, would

not be chosen until the august democratic conference. so, we have a period of uncertainty surrounding the democrats if we were to see that. so, i think that's the first thing. the second thing is the market has leaned in a little bit to the idea that donald trump could be president. so, one of the things we have seen since thursday's debate is the ten-year yield is higher relative to the two-year yield. the yield curve is steepening. that is because trump is more inflationary than biden because he wants to increase immigration and reduce tariffs. that combined with the prospect that the fed will start cutting in the autumn is producing that kind of movement in the market. >> what does that mean for u.s. equity? late last year, i saw these remarks suggesting we are going to see a rally in the summertime as the markets were digesting

what is happening in the monetary policy front. ulti ultimately, do we have more room to grow with the u.s. equities given all this noise? >> i think it comes to the politics and there's a sense -- although there's a lot of noise with the politics and if there is a trump presidency, it is good for banks and energy stocks and it is because of his bias to cut taxes, it may be good for the equity market. i think the rally will be different for 2025. for now, it will not move the u.s. equity market. what is more important is the incoming economic numbers we get starting with the payroll data tomorrow and then subsequently. if it is a soft landing, the market is overvalued and can go sidewise and be choppy.

we could see a good correction in the u.s. equity market. >> let's look at the data. we have non-farm payrolls tomorrow. the numbers suggest we are seeing a coming in the u.s. economy. will the data we get tomorrow continue to prove that? >> i think the numbers the market is looking at and ourselves fit in with this idea of a soft landing. namely, we are slowing, but not dramatically. that's actually good because it then gives the ability for the fed to come in september and say the economy is a bit below trend, but not too bad. inflation is moving toward target, so we can start cutting interest rates in september. then the focus becomes how much will the fed cut for the remainder of the year and 2025. i think that's what we'll see out of the data. we need to look at the data closely, so we're not just

looking at the non-farm payroll figure, but the unemployment rate and the average hourly earnings. if you come in broadly in line with the consensus, the market will stick with the soft landing narrative. if there's a surprise on the downside, then the market would get a bit more worried that the jobs market is slowing a bit too quickly and that would prompt a reset in terms of expectexpecta. >> ultimately, what is the fed doing to stay too cautious? they are not confident enough to cut rates yet. there is a lag here. we look at the data. we are already seeing a slowdown in the labor market. is the fed too cautious? are they too late? >> they are a bit cautious. they're probably not too late because once they start cutting, then they could ultimately cut every meeting if they want. we actually think they will cut

september, november and december and a core pace next year. although it looks they should be cutting now and they might be a bit late, but that perception could easily change as we get into fed actions arriving. so, we tend to favor the curve. we think the yield curve can go positive and that trend can continue particularly in the first half of next year. the one thing that is certain is you will see fiscal stress in the u.s. if a democrat president is elected, the republicans will fight on the debt ceiling. if we get trump elected, then he is likely to push through his tax cuts and that's going to upset the rating agencies. >> i'm interested in your thoughts around three rate cuts. that's quite a bold call in terms of what market

expectations at this stage. why are you confident we could see the fed cutting three times and the fed is saying max two. >> i think there are two big things going on in the u.s. economy. first, the lag effect of the previous tightiening is biting. the second reason is the americans have exhausted their post-pandemic savings. all of the checks posted by the government have been used up. now, particularly for low-income households, we are getting a bit of stress occurring. that's causing an underlining slowdown. that, we think, will come through and we'll be clear once we get to the fall and by that time, the fed, combined with the underlining trend of the slowdown in inflation will be comfortable in cutting at that pace. >> and what do you think of the pressure from the fiscal front? is that the event that could

lead the u.s. markets to correction? >> it could if it gets particularly ugly, but i don't think we're talking a uk-style liz truss debacle. we are talking a crisis. we see a 30 or 40 basis point increase in the yield which will hurt a correction. it's a correction rather than a deeper selloff. >> let's see what happens. that was mike gallagher at continuum economics. polls are open in fruk. do not miss our spiaecl coverage of the results tomorrow from westminster and across london.

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join the millions of people taking back their privacy ♪♪ >> narrator: in this episode of "american greed"... ray nagin rises to power as mayor of new orleans on big promises of reform. >> the winds of change are blowing, and they are fanning the flames of a renaissance in our great city. >> when he first came into office, he was a rock star. i mean, this is a guy who had crossover support -- black, white, rich, poor. i mean, he was the guy that came into office that was supposed to change new orleans, fix new orleans, clean up new orleans. >> narrator: until one of the most catastrophic storms in history changes everything. >> katrina strikes a heavy blow to the louisiana coast as a category-4 storm. >> everybody was devastated. we had no electricity.