♪ >> good morning, i am tom

mackenzie. global stocks set for a record high has investors await data. jerome powell reiterates interest rates will be higher for longer. china is considering buying homes as it shores up earnings. a focus on big banks. including alley yachts. it is today beats for the insurance company with pimco in the mix. profit is above estimates. essentially 4 billion euros. estimates had been 3.86, total

revenues are shy of 50 billion euros. a beat when it comes to operating profit. 4 billion euros, estimates had been for 3.6. i will be speaking to the cfo, that interview at 6:30. 15% year to date up. german lender coming out with earnings. beating estimates at commerce bank, above estimates in the interest, estimates were for above 2 billion. net income above estimates comfortably. net income in the first quarter,

estimates i been millions. 2.7 5 billion in revenues. above estimates of 2.7 4 billion. in terms of the outlook for income, 8.1 billion euros for the full year. estimates where 8 billion. above estimations for commerce bank. i will speak to the cfo along with the markets today team after 7:00 a.m.. the netherlands three sets of beats coming through for the financial services sector.

in terms of profit, well above estimates of 526 million. a solid beat in terms of operating income, two point 2 billion euros and estimates were just over 2.1. net interest is a focal point and investors coming in with a beat. just shy of 1.6 billion euros. estimates were for 1.56. relatively comfortable beat. i will speak to the cfo later, that interview at 6:45. another company were looking at, earnings coming through, a different picture when it comes to the giant facing up to input

costs, cutting their output with a net loss. net loss, they lower their targets, keeping their earnings goal. sales came in below estimates, adjusted earnings slightly above in the second quarter but a key line is lowering the outlook and forecasting a loss. energy has been a challenge for this giant. let's check in on broader markets, the picture remains positive. producer prices, mixed picture. headline is higher and you lift the lid and it looks more benign. we lead up to cpi out of the u.s. later today, edging lower. european stocks looking at gains

of 2/10 of 1% after fresh records. the ftse adding 4/10 of 1%. futures are flat above 5200. nasdaq after a rally including tesla, 18,000 flat. looking for a reaction around the treasury curve. positioning 482 on the two-year. the 10 year is sensitive. moving up and copper, fresh records. up 3/10 of 1%. checking in with paul dobson, the bottom line seems to be stocks at a two-year high, grounding -- grinding higher. paul: fascinating daytrading.

lots of input. we had a rally in the u.s. markets, tech in the driving seat, a key theme pushing markets higher led by tsmc and the taiwanese chipmaker, we had earnings overnight. tencent good, alibaba not so good. we will not learn the full impact until tomorrow's trading. when we are trying to discern what the impact of those sanctions announced by the u.s. yesterday will be for asian markets. we seen some of that showing up on a chinese manufacturing company, not huge moves and the sentiment seems to be while these numbers, the impact is

small, midmorning we had news on the property, the idea local governments could buy back inventory, adding support as we headed into lunchtime, giving markets a lift. they had been lower, weighing on the complex. signs of coming back into the afternoon. everything else was positive. a two-year high feeding into the record. tom: bloomberg's editor for asian markets on key factors driving the region. thank you indeed. we look ahead indeed to inflation data indeed. jerome powell speaking in europe saying the central bank must wait for evidence inflation is cooling before cutting rates ahead of the cpi data later today. >> i do not think it is likely

based on the data that we have that the next move would be a rate hike. it is more likely we will hold the rate where it is. >> let's bring in mark cranfield. how significant do expect this report to be, when it comes to the question of the fed forecast? mark: yeah, it is significant because the rate cuts in the dot plots are hanging by a thread and it may be too late, they will have to be changed. if there is any chance of preserving rate cuts it would mean a soft report. if we don't get that, traders will give up on the idea. one or two cuts is the most, likely to get confirmation. maybe back to one rate cut.

do not forget, the past two inflation reports, both exceeded expectations. it has driven yields higher and the dollar higher. big impact and either market has are covered so yields may come to have but they are higher than they were. the dollar is near the high so you can see how significant it is. equity markets would like it close to expectations. focusing on ai and tech and earnings, pretty decent. so bonds and currencies we are looking at, things like dollar-yen, the last cpi report was the final thing to trigger it toward 160, the high for this year. currencies, yen, aussie, chinese

currency, all eyes on the cpi. tom: cranfield on inflation data thank you indeed. antony blinken has reassured ukraine of washington's support as russia continues a large-scale offensive. he met with full a mere zelinski in kharkiv. >> i have come with the message. you are not alone. the united states has been by your side since day one, we are with you today. and we will stay by your side until ukraine's security, sovereignty, ability to choose its own path is guaranteed. >> let's get more on the story with our reporter. how significant is this visit and why is it happening now? reporter: indeed. it is the first visit by the

senior u.s. official since congress approved 61 billion dollar military aid package for ukraine. that came late, it took six months to approve and that left ukraine outgunned on the battlefield and that happened as russia sensed an opportunity and opened. they are attacking toward the northeast of the country and pounding the country with bombs and which obviously what happened was the president was pleading for the u.s. to deliver patriot batteries which would provide air cover. what we're hearing is u.s. is considering sending another battery. they want to batteries.

that second to largest in ukraine has been suffering. there is more aid from europe considering sending another battery. at this point, the visit was important. trying to show the u.s. is going to be there for the long haul, but ukraine is definitely on the back foot because of delays and it is now crucial to come to the front and be delivered onto the front line so that actually ukraine can fight back. tom: thank you very much indeed on lincoln's visit to ukraine indeed. coming up, we will go live today number two of the qatar economic forum with big interviews today including the ceo of a hospitality company. that is next, this is bloomberg. ♪

♪ tom: welcome back to bloomberg. it is day number two of the forum. horizons middle east and africa anchor is there with a guest. reporter: toryism is a big theme and i will be hosting a panel with tourism ministers from saudi arabia and qatar. i'm happy to say the ceo joins me now. exciting time and lots of conversations about tourism and hospitality. talk about plans for the region. >> this is the best region, we

have 300 hotels. most coming from saudi arabia, but it is the country in which we have had the greatest growth, 25% better numbers. this is the place to be, the place to act. you will probably have to do it different ways. joumanna: that is something i wanted to pick on. how are the trends different? >> if you go to saudi you want to discover something. there are lots of wonderful sites. if you go to qatar, they did something extraordinary, great museums.

if you go to the uae, you probably have different fund. you go to food and beverage, entertainment. the best is to do the three, you go 10 days, three days. they have one thing in common, vision, ambition, backbone and leadership. anchor: you talked about the luxury part of the market and i wonder if that agency you will because it is a region that tends to be john to luxury. >> we were nowhere in luxury 20 years ago, now we are number two. thank god we did because the growth is luxury. the hotel has quite a few but that was 25 years ago and no further growth so when it comes to the firm, here you are.

this is what customers want is to show them the best time other -- ever and they could afford it. this is a segment. host: we had a conversation during peak covid we spoke about outlook for business travel because now everyone is back to zoom. where are we in terms of the numbers? are we where we were? guest: it depends on geography. north asia, much less. in america we are at 219. europe is 3% better. 25% better in this region, fast recovery has been uae.

most has to do with demand and travelers. and financial resources in investments from saudi arabia to people, this is where the financial needs are. business travel is back. before it was international corporate affairs. fly from seattle to paris. much more small or medium-size because with people working, you have small groups meeting in hotels. a group of 10 or 20. and we have vacations, people work remotely from a hotel. host: olympics are coming up, how has the activity been?

what are you seeing? >> there are a lot of works being done in paris. it will be better than what you think of. the scenery, the city. we are anxious to host 15 million people. we have to take care of security. we will be managing athlete village, and we will be hosting 25,000 people so we had better be good in terms of shaking in the kitchen and housekeeping. that is my job and for the rest you will see sports. my biggest really dream is the olympics. paralympics, anyone watching, it is far stronger in terms of emotions. joumanna: really exciting time. can i ask you given you were talking about decisioning, how

is that panning out as far as the olympics is concerned? >> we are 85% booked in paris. we have 700 hotels in france so we are in between 78 and 85 and we will be 100% by the time of the olympics. crisis did not go through the roof. we expected the worst and everyone said do not increase pricing so the pricing will be similar to an air show. joumanna: you strike me as a glass half-full person and you said to me -- do not estimate hospitality so i'm going to ask you, what is your biggest concern? >> geopolitics, anything that is

a conflict zone and dangerous. i am stunned because the end of november i was thinking egypt would have toryism and so forth. it was packed and that was a couple hundred kilometers. so i need to be very humbled and navigate through troubled waters. but people want to meet in the best thing is for people to interact and discover cultures so let's travel, understand and listen and be humble. host: that is a nice way to be. that was the ceo. tom, back to you. tom: thank you indeed. bloomberg anchor with the ceo at the qatar economic forum. plenty more big interviews throughout the day including conversations with the ceo of tou thao and group ceo of qatar

airways. stay with us, this is bloomberg. ♪

♪ >> i do not think you can differentiate ain geopolitics, they are intertwined. ai is an important part of weapons, health care, car technology, so they go together and it is a new thing. microchips is an important part of geopolitics. all these things are more complicated. host: you are tantalized by this change. many are worried. guest: the world has never been

more exciting. ai is leading to change. huge progress. for instance in the way we do research and r&d, it is improving weather, improving a lot of things. tremendous increase in compute power. so it is positive. tom: you can see the interview on leaders with lock what goes green tonight in the u.s. and six: 30 p.m. london time on thursday. other stories, openai's chief scientist is leaving the company planning to work on an undisclosed project. one of several who moved to fire ceo sam altman. openai's trajectory has been nothing short of miraculous.

they were described as one of the greatest minds of our generation. coming up, elian's reports better than expected operating profit and inflows. pimco part of that business. speaking to the company cfo in the next couple of minutes that is next, this is bloomberg. ♪

>> this is bloomberg daybreak:

europe. i am tom mackenzie in london. these are the stories that set your agenda. little stocks are set for a fresh record high as investors away today's key u.s. inflation data. interest rates will likely be higher for longer. china is considering buying millions of unsold homes in shoring up its debt ridden property markets. plus earnings have been in focus, rising profit with clients adding 32 billion euros. the commerce bank upgrades its outlook for lending income this year after seeing its best orderly profit in more than a decade. let's check in on these markets very briefly with fresh records across global stocks. s&p futures currently looking at

about a 10th of 1%. a big day in terms of inflation data, cpi. that is the date of one of the week. the euro-dollar at weight. burn closing in on $83 per barrel. copper at 10,171, reaching record highs in terms of that industrial metal. this get to the earnings story. reporting operating profit for the first quarter. the german insurance giant also affirmed its full-year forecast. i am joined from munich by the cfo. thank you very much for joining us on the back of these earnings. talk us through what they tell us about the orders ahead. you are reaffirming your guidance for the full year. you haven't changed that despite his better-than-expected results. is there an upside potential to that forecast?

>> thank you very much for welcoming me today, tom. i know it has been a very good start to 2024. we have our operating profit up, our net income up. sorry i need to change something technically is not working here. >> ok. let's see if we can get that technical fixed. this happen sometimes. live tv. sometimes we have technical issues. just talk me through was been going on with elliott's as we wait for that to be addressed. really interesting as well. if we establish that line, hopefully we will hold on income. inflows have come through. 34 billion euros for this

business. the asset manager with a focus on fixed income. they've seen a number of quarters of outflows but that narrative has changed. the interesting question will be to what extent that is going to be sustained. they've also had claims in terms of t insurance. i believe we fix this -- we have fixed this technical issue. i started with the question on the forecast. the four year forecast. the forecast has been maintained for the full year. i wonder what the question would be for some investors out there. that is looking less than ambitious. i respected to be that full-year forecast question mark >> we had a super good start into 20 34. operating profit, net income. this is a very good indicator of

how learnings are. what is really good is there contribute in very well and the balance is also very good for the year going forward. my kick apis in terms of growth and profitability being ahead of my staycation, i think we did very well to confirm the operating profit outlook. this feels very early. we are in the insurance business. at this point in time, the outlook is the right one. i am very confident as we move ahead into the air. >> a top range of --

quest that is positive clearly given the outlook of the story in the past. our using inflows in pimco to be sustained russian mark >> pimco had a very nice first quarter. 32 billion of net inflows. really exceptionally high performances as well, the operating profit. that is instrument nice. clearly this is a volatile environment. this is a great space for income.

>> ok. how to talk about the u.s. market. where is aldean's on this journey? is there more to come on the front? >> first of all, in the u.s., elian's is a very big player in the u.s.. we are committed to the u.s. market. that is a very big player on the left side. when it comes to our specialty plate, we are very committed to the u.s. market. we have decided to do this divestment in the u.s. where we are quiet small to ensure that we can focus on what we are, really good.

there is this operation that is really small when you look at the size, it is much for the fact that we are extremely diligent and looking at what makes sense in terms of capital deployment. that is definitely the logic of this divestment as well. >> what is your comfort level? what is your expectation about the ability for al jones to return >> you may remember last time -- this one billion share buyback -- i think it is a bit too early to discuss it. we do not leave everything on the table when it comes to regrading value for this.

quick thank you for sticking with us on those technical issues. we appreciate it. they have seen strong revenue growth in the first quarter. we will discuss that and the defense spending push with the company's ceo. some spotlight on the defense industry. that is next. this is bloomberg. ♪

>> welcome back to bloomberg daybreak. confirmed guidance from a pure let's crossover to numbers oliver quick. an interesting interview on it. europe is scrambling to build up its bond elected military

capabilities. defense is a historically low volume industry. at the very center of the ecosystem you will find germany's rank was builds engines, suspensions, transmissions for them across the world's militaries. rather in the united states. we are very pleased to be joined by the sierra. thank you so much for joining us this morning. i just want to begin on the numbers. what did you see on the first quarter broadly? what does it tell you but will be camp does -- anticipate for the rest of the year? >> we had a very good first quarter this year we are very happy with respect to what we could deliver. more than 20%, 23.

the margin by 2% in our net working capital ratio going down. positive operating cash flow also free cash flow super happy with the performance of q1. >> what is your growth expectation for the used to come tomorrow what's with respect to the guidance we've given to our investors. we expect topline roles. about 10%. we can achieve more. the market is in strong demand. we expect that this continues in the years to come.

this is what we have shown. that we could translate all the backlog. i think this is what counts. quick scaling what is a historically long liu. there is question the finance. materials. what are the biggest challenges to getting those up? >> we are in good position with respect to our essence. we do not see a need at the moment. to have expensive capex. our challenge is really to find qualified people in the speed and scale that we need them to ramp up.

the second challenge is obviously supply chain supply chain is becoming better and better for us at the moment. we have quit some work to do in the last 18 months with respect to supply chain. things are coming into the right direction. this is where we have to put some inventory on the books. quick the question on the supply chain, two questions down there. are you also competing with automakers for some of these parts? is that something that is going to have to be helped up by the government? are you concerned with what we are seeing with more tariffs rising between the united states and china? >> good point. thank you. yes, we are impeding. also within the automotive industry in the defense industry -- it was not the most important of the suppliers.

with the visibility in the backdrop we have for many years, we could improve our position to negotiate. this could help more as we increase volume. this is one of the important measures. >> are the orders really matching the rhetoric we are hearing out of brussels? >> i think the governments have understood the drama across europe needs to be increased. i don't perceive that there is a debate about --

it is just a debate about how to finance that. this is not easy with respect to parties. i am very convinced and confident the money will be allocated. but there is a delay in understanding the situation, taking the situations and executing. that is what they have seen in the last few months. i am very confident. >> how much of that money do you think needs to come from the private sector, from investment to encourage more money to flood into this industry which is a large taboo? maybe they've not gone as far as many in the defense industry would have liked. what is the role of the private sector and how hard is it to raise money in germany

specifically for this? >> it is getting better and better. it is important that the defense industry is treated like any other industry in the global capital flows and markets. we have not received in the u.s. and also the u.k. street -- specifically in german defense companies -- they are privately owned. it is really important that the capital market side is treating our industry similar to any other industry and this is not

putting barriers -- the industry needs that to scale up. >> another way that your industry might be like more consumer industries is the transition to electricity to a certain degree. i was learning about how much a letter of motors are being used in tanks. can you talk to us a little bit about the innovations and what is coming and what you're focusing on? >> absolutely. it is exciting to see new technology which is the point. we see electrification, hybridization. customers for future projects which is a requirement. these are not viable solutions

even on vehicles and tanks. the remote-controlled solution. other women like drones, sensors and connectivity into other systems to combine informational pictures. this means clearly that we want to electrify our systems into the connectivity's of those. quick thank you so much for your time today. could to see a. i will headed back to tom. i found it very interesting that

there are functions for this on the battlefield. for example, tanks are very loud as they move through the battlefield and there are these electric motors for that last mile. >> really fascinating conversation. 20 more coming up. stay with us. this is bloomberg. it's an amazing thing when you show generosity

of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

>> welcome back. i am very pleased to say that i am joined by the company's cfo now. talk us through the outlook for

net interest income for the bank. does it still remain flat in 2020 verse -- 2024 versus 2023? >> yes. thank you for having me. taking one step back. all four profits were very strong at 674 million which is up 30% compared to last year. are we close to 12%. if you look at total income, there was also higher. there is evidence by a resilient net interest income. but also strong fee growth. all three units contribute. that is compared to the last quarter. net interest income is resilient. we provided guidance through q4

of around 6.3 billion for the full year. we are very confident with that guidance. >> talk us through the progress for the 2026 targets then, ferdinand. your targeting what -- what progress have you made? >> we are confident with the targets we provided. specifically cost income overall. it is always a difficult quarter to recollect. this is down to the previous quarter. we do expect some inflation with them coming up or this for the second half of the year and we are also investing and upscaling

some of the major change programs. this is a very important element in reaching this is 2% cost income in 2026 and also an income of 3-5%. >> talk to us briefly about acquisitions. this has long been a potential acquisition target. is that a possibility think? quickly see what we see so far. it is mainly in market consideration. we are looking at potential boosts on acquisitions. it was evidenced by the acquisition of one of the larger

ne-yo brokers in europe. there might be some more support for the european banking unit. there are still some financial topics. potentially being a trigger for cross-border m&a. >> a beat coming through. markets today is up next. this is bloomberg. ♪ ♪

good morning from london. this is bloomberg markets today. with the cash trade just less than one hour away. european futures in the green with global stocks had