kkr leads the bidding for deutsche bank's $20 billion tower arm.e will have the full roundup of that story next. this is bloomberg. ♪ tom: welcome back to the open. 23 minutes into the european trading day. gains in european markets of around .4%, building on modest upside yesterday. theu.s. is opening after the independence day holiday yesterday. the one like art in terms of the indexes is the ftse 100. basic resources and energy are both lower, two sectors in the red. francine: a consortium led by kkr is emerging as a frontrunner to buy a stake in deutsche telekom's wireless tower portfolio. a deal could value the towers at $20 billion. benny, tell us about this proposal and how likely is it to get over the line? >> it looks increasingly likely that kkr and the group it leads will make it through the gate on this deal. there is competition out there, brooklyn -- brookfield asset management and a tower operators specialist is still in the running but it looks increasingly likely according to escape from one of my colleagues in m&a yesterday. the d

kkr is known to lead in while valuations are depressed. as such, the firm raised $2 billion for a new credit -- based on as a backed financing. joining us is the cohead of private funds, daniel --daniel petrzak. let's start with the macro picture, 9% handle on inflation. talk to us about how it affects the financing. are you more hesitant to hop into new deals, projects? daniel: clearly i think the print today was no surprise on how wide it was. i think volatilities exist in the markets and i think in many ways that volatility is good for private credit. we are in the business of finding interesting opportunity if these were privately originated and negotiated loans. we intend to hold them to maturity. we intend to be the stable source of capital in environments like this. it is a worry from an underwriting perspective. i think we are trying to be cautious as it relates to how we deploy capitakl -- capital. we do take risk. kriti: when you thing about the outcomes ahead, recession, what are these doing in terms of underwriting for the futu

we might hear this week whether kkr does get this asset. manus: let's see if they win the prize from deutsche telekom. let's check on some of the key points markets will be focused on today. we had the rba raising rates by 50 basis points, the first back to back hikes in history. dani: we will also get industrial production data followed by global pmi at 8:50 a.m. we have the euro area, germany and the u.k. and then the bank of england will issue its financial stability report. manus: coming up, a rollback of u.s. tariffs, that injects a boost of risk in the market. dani: we will also be talking about natural gas rivaling oil. soaring prices for the commodity push in europe to the brink of recession, that is on bloomberg's big take later this hour. this is bloomberg. ♪ manus: it is daybreak europe. i'm manus cranny in dubai, alongside dani burger in london. owing back the tariff, one could say that is a risk on china. yields are rising, we did ratchet as much as 13 basis points on the short end of the curve. aberdeen standards say get ready

dani: it was brookfield and digital bridge beating out kkr. another company dropped out and there was a lot of back-and-forth, but finally cementing that deal with deutsche telekom a 40% stake. manus: when you see brookfield coming in, doing the big pipeline deals, this is where they tussle, it is guaranteed yield and oil and gas in the pipes. these are infrastructure deals which deliver substantial returns. deutsche telekom will keep a portion of this deal. they are 40% but kkr and global input structures are probably a little disappointed. let's take a look at the agenda for the day. 7:00 a.m., we will be long gone, we will get swedish cpi and unemployment. dani: we will also get irish cpi at 11 a.m., by that point we be having our fifth copy at the net -- coffee at the ned. jobless claims will have the table at 1:30 p.m. u.k. time. then it is bank earnings, jp morgan will be reporting today. manus: are we in a hurricane? dani: or is it clouds again? manus: is going to be important because if you think about the warning he gave, then six wee

on this point of view because you're short a lot of the highly cyclical names dupont, alcoa and even kkr and things like that, and you're still long some names that people might be surprised to hear like autozone, dollar general, costco and northrop grumman. can you dig into that a little bit? >> sure. there are two problems that the market is facing one is getting incrementally better which is inflation, but it's incrementally better and the other is getting incrementally worse, which is the odds of recession, earnings growth and the speed of the economy. so what we want to be avoiding until we see a bottom in leading economic indicators which is not until next year are stocks that are sensitive to macro data like the ism or unemployment claims or credit spreads. so the four stocks you mentioned, dupont, alcoa, kkr and active, they all have correlations of the relative performance of 70% to 80% of the ism. so if the ism will continue falling next year, which we do, you're swimming upstream from a macro perspective owning those names. in addition to that, these companies rank in the sell

kkr is emerging as frontrunner. the business could be valued at around $20 billion in my deal. telecom would pick a winner this week the u.k. will curve disinformation. if they don't, they face fines as much as 10% of global sales the crackdown is the fourth coming online safety bill. and the price of -- metal is considered a bellwether it is trading below $8,000 a ton as the group metal just posted their worst in the 2008 financial crisis. and that is your latest business flash. kriti: thank you. let's get a check on the american markets here because the sell-off is $6. the s&p 500 down about 2%. hovering near the session low. so what isn't is the nasdac. the media dropped at the open and that's the outperformers. down about 1%. but take a look at this the dollar is where all the action is. that strength in the greenback is up eating back to stock story and crude story. crude at about $100 a barrel on this side of the ocean. guy: crude is having a massive impact the football power index today. they are down by 3% right now. ftse 100 right now european markets are videoing a ve

kkr's proposal is more attractive.are expected to make a decision this week and they have been valued at $20 billion in any deal. coin bank crypto lender vauld is exploring restructuring. it is suspending traded three weeks after saying it was processing withdraws as usual and will continue to do so. rivals said they will finance and they are resorting to last ditch measures to survive the market rout. david: hopefully the route, most of it hopefully is behind us. who knows really what the future brings, but certainly this week or so, gains on monday. u.s. markets were shot. sick will be getting more gains this tuesday. -- looks like we'll be getting gains this tuesday. half of 1% to the upside though. cash markets are shot. new zealand up 1%. let's put the boards and have a look at where we are in u.s. futures i believe here. so we came out of bed and sort of meandered around for about an hour or so. picked up momentum as you can see here on your screens. this is dollar-yen, but indicative of risk appetite if you will

bloomberg has learned a led by kkr is the front runner for estate in the wireless tower unit.rces say the package is more attractive than the rival's proposal. deutsche telekom is expected to make a decision on this this week and it may be valued at $20 billion. coinbase backed crypto lender vauld nad -- has hired advisors to explore a restructuring and it is a restructuring and it is suspending trading and deposits less than three weeks after saying it was processing as usual and would continue to do so. the company joins rivals in resorting to last-ditch measures to survive the market rout. haidi: let's take a look at the day ahead for australia and new zealand. and of course there is one major thing on the agenda. economists expect in rba to raise rates for a third straight month later today, signaling more big hikes to come as it tackles escalating inflation. they intend to use 4200 kilometers of high-voltage undersea cable to export power from a giant solar and battery complex in northern australia. we are also watching these floods in and around sydney. more evacuation o

emily: kkr says ipo's are a year away, how far away do you think they are? phil: i think you have companies preparing everything if the economy turns around more quickly. you have finance teams at pre-ipo companies, we speak to them a lot and they are gearing up to be ready when the window becomes available. maybe there is an opportunity for the strongest names, but other than that i tend to agree it probably won't be until 2023. emily: the closed ipo window is creating some tension between employers and employees. you have all of these employees working at startups who thought maybe they would get an exit and soon. that is not happening. what are you seeing below the surface? phil: we have a good lens into the feelings and sentiment of employees that hold shares. a lot of conversations the employees had with employers, we last year, was that everything is great, we are raising money and will go public soon and will get liquidity and that is not the case. it is exacerbated by the recent news coming up from some companies where insiders, executives or founder

an upcoming recession and it created with a much longer term it's in the music space like apollo and kkr spnt a large amount of money in music can the logs in recent years. there is good headline growth coming up where there are opportunities that tend to be more infused in the industry and they're trying to stay away from the volatility >> what do you make of the market action this week? we've got a hotter than expected cpi number we've got banks building up loan loss reserves and yet on the s&p we're ending after the divot and that seems to me to show a lot of optimism on the market and i'm not sure that's a great sign >> jon, i think there's too much optimism in the market and the reason i say that is i look overseas and we see the data and expectation out of china that the gdp is coming down significantly. and the expression of the eu which is a soggy earnings season is factually the right one so i find the optimism that we're seeing in the market today is perplexing. i'm definitely more pessimistic than what we're shaking out this friday >> how would you read the consumer which is s

. >> a lot of people are reading a judgment calmed the cake deal, for lack of a better term, kkr deal in fact, the same chancellor, mccormick, who's likely getsing this case, said, no, no, no, your financing cannot back out because you were the reason they were worried about it in the first place. they go together you have to do the deal. they did don't look to the financing here as a way he can get out of it. >> he can't get out of it. >> so much yet to come on twitter. >> they need an email from ed siegle that says let's send him all the phony numbers, and that email does not exist >> by the way, we've been making this up all along. the bot accounts would have to be significantly higher. it would have to cause a material adverse effect under the merger >> there is always some email somewhere. what a jackass that guy is >> waiting to hear from musk and his legal team in response to the complaint that was filed >> are they taking his passport away >> no. >> david said the other day -- >> please don't do it. >> the public finally forgot >> don't do it >> a quick reminder -- >> i know.