>> NEWSPAPERS AND MARKET MOVERS, THIS IS THE PULSE WITH FRANCINE ROCKWELL. TOM: GOOD MORNING AND WELCOME TO THE PULSE. HERE'S WHAT'S COMING UP ON TODAY'S PROGRAM. EUROPEAN STOCKS OPEN HIGHER AFTER THE ECB'S GOVERNOR COUNCILMEMBER TELLS BLOOMBERG THAT TWO MORE RATE CUTS MAY BE IN STORE FOR THE EURO AREA THIS YEAR. SHARES ROCKET AND POST-MARKET TRADING AS VOLKSWAGEN SAYS IT WOULD INVEST 5 BILLION DOLLARS IN A JOINT VENTURE WITH THE EV MAKER. PLUS, AT LEAST FIVE PEOPLE HAVE BEEN KILLED AFTER ANTIGOVERNMENT PROTESTS IN NAIROBI TURNED VIOLENT WITH ANGER DIRECTED AT THE PRESIDENTS TAX RAISING PLANS. EUROPEAN STOCKS WERE LOWER IN THE SESSION YESTERDAY ENDING DOWN. BUT A SOLID SESSION FOR EUROPEAN STOCKS. GAINS COME THROUGH FOR THE FTSE 100 CURRENTLY THAT INDEX POSTING GAINS. OVER IN FRANCE, GAINS. CURRENTLY UP AS WE LEAD UP TO THE FIRST ROUND OF VOTING IN THAT PARLIAMENTARY POLL ON SUNDAY IN FRANCE. DECENT GAINS FOR THE GERMAN DAX. CURRENTLY AT 18,350 NINE POSTING GAINS OF 180 TWO POINTS. THAT'S WHAT THE BOARD AND HAVE A LOOK AT THE U.S. FUTURE STORY. YOU HAVE THE GAINS COMING THROUGH ON THE S&P BUT MORE NOTABLY ON THE NASDAQ YESTERDAY, LIFTED BY THE GAINS COMING THROUGH FROM NVIDIA, BUYING THE DIP AFTER THE $430 BILLION ROUTE IN THAT STOCK, MOVING INTO CORRECTION TERRITORY, GAINS OF NVIDIA AROUND 7% BY THE END OF THE GAME, LIFTING THE S&P. S&P FUTURES LOOKING TO GAIN ON THAT, POINTING HIGHER. NASDAQ FUTURES LOOKING TO ADD A NINE POINT SO FAR IN THE SESSION. GAINS ACROSS THE EUROPEAN SPACE SO FAR THIS SESSION GONE ONE HOUR INTO THE TRADING SESSION. IN TERMS OF WHAT'S HAPPENING ON THE CORPORATE FRONT, ONE OF THE KEY STORIES WAS THIS INVESTMENT BY VW IN THE EV MAKER FROM THE U.S., IT HAS STRUGGLED IN TERMS OF FUNDING, IT STRUGGLED IN TERMS OF BUILDING OUT FACTORIES TO GET THE CARS IN THE HANDS OF CONSUMERS, BROUGHT SLOWDOWN IN GROWTH OF SALES ELECTRIC VEHICLES FOR THE INDUSTRY. VW NOW COMING THROUGH WITH SIGNIFICANT INVESTMENT. THE INITIAL BILLION FOLLOWED BY A COMMITMENT OF A FURTHER 4 BILLION WITH THE SHARES GAINING PRE-MARKET ON THE BACK OF THAT DEAL UP 43%. SIGNIFICANT FOR THAT EV MAKER IN THE U.S.. IN TERMS OF WHAT’'S HAPPENING WITHIN THE DELIVERY SPACE, THIS IS IN TERMS OF THE HEALTH OF THE ECONOMY, FEDEX ISSUING A PROFIT FORECAST ABOVE WALL STREET EXPECTATIONS. BOOSTED BY THE COST-CUTTING THAT HAS COME THROUGH FROM THE BUSINESS, ALSO SAYING IT WOULD BUY BACK $2.5 BILLION OF ITS STOCK OVER THE NEXT YEAR. FEDEX THE PREMARKET UP 13%. WE FELT THAT IN EUROPE WITH DEUTSCHE POST LIFTED. LAST TIME I CHECKED UP ABOUT 3% IN EXPECTATIONS THAT DEUTSCHE DHL WILL ALSO GET A LIFT GIVEN THE UPSIDE RECEIVED FROM FEDEX. PRE-MARKET THAT STOCK RALLYING 13%. CHIEF EXECUTIVE OF BARCLAYS THAT IT'S UNREALISTIC TO EXPECT BANKS TO ABANDON CLIENTS AND FOSSIL FUEL INDUSTRIES. OIL AND GAS WILL REMAIN PART OF THE GLOBAL ENERGY MIX. ANNA ED WORKS SPOKE TO THEM AT THE BLOOMBERG -- ANNA EDWARDS SPOKE TO THEM IN LONDON. >> WE ARE VERY MUCH MOVING AWAY FROM COAL TO OIL, OIL TO GAS, GAS TO CLEAN ENERGY. THE REALITY IS THAT FOR QUITE SOME TIME, FOSSIL FUELS WILL BE WITH US, RIGHT, ESPECIALLY NATURAL GAS. SO THAT PATH IS LONG. THE WORLD ON THE WORLD ECONOMY CANNOT GO COLD TURKEY. THAT WAS THE COMMITMENT WE MADE AND WE MADE A STATEMENT OF HOW AGGRESSIVELY WE WERE GOING TO DO IT AND WE BLEED OUT THESE TARGETS IN OUR MEASURES. ANNA: WHAT HAS BEEN THE RESPONSE BECAUSE YOU MENTIONED YOU ARE SUBJECT TO THE PUSH AND PULL AND I IMAGINE THAT'S THE CASE, YOUR CRITICS WILL WANT YOU TO GO COLD TURKEY ON ALL OF THESE PARTS OF THE ENERGY MIX, AND OTHERS WILL SAY, NO, YOU'RE LEAVING MONEY ON THE TABLE, SO, WHAT'S THE RESPONSE? >> I WILL TELL YOU THE PUSH AND PULL, THE SAME 2-3 WEEK TIMEFRAME IN JANUARY, FEBRUARY. THIS STATE OF TEXAS BANNED US FROM DOING MUNICIPAL BOND BUSINESS BECAUSE WE WERE TOO GREEN. THE STATE OF OKLAHOMA FOLLOWED. WATCHING WHAT MIKE SAID ABOUT FLORIDA AND THE FAIR ACCESS LAWS FAIRLY CLOSELY. WE HAVE A RETAIL BUSINESS IN THE UNITED STATES AS WELL, CREDIT CARD BUSINESS IN ADDITION TO OUR INVESTMENT BANKING AND CREDIT BUSINESS, SO IT AFFECTS US. IN JANUARY, WE GET THAT, THEN IN FEBRUARY, TWO OR THREE WEEKS LATER WE GET A CONSORTIUM U.K. UNIVERSITIES, THEY HAVE BEEN CLIENTS FOR 250 YEARS SAYING THEY DID NOT WANT TO DO BUSINESS WITH US BECAUSE WE WERE NOT GREEN ENOUGH. SO YOU HAVE THAT ACROSS THE ATLANTIC. MORE INTERESTINGLY, IN MAJOR FINANCIAL NEWSPAPER BASED IN NEW YORK COVERS TEXAS BUT NOT WHAT HAPPENS TO US HERE. THE MAJOR FINANCIAL NEWSPAPER IS NOT THAT FAR FROM HERE COVERS WHAT HAPPENS TO US IN THE U.K., BUT NOT IN TEXAS. NOT ONLY ARE THERE MULTIPLE ACTIONS, DIFFERENT ACTIONS IN DIFFERENT JURISDICTIONS, BUT ALSO IT FEELS LIKE WE ARE PLAYING TO AUDIENCES AND A WORLD COMMUNITY THAT DOES NOT COMPARE AND CONTRAST. TOM: BERKELEY CEO SPEAKING TO BLOOMBERG'S ANNA EDWARDS. THE CENTRAL BANK POLICY NOW, ECB GOVERNOR COUNCILMEMBER HAS EXCLUSIVELY TOLD BLOOMBERG THAT INVESTOR EXPECTATIONS FOR TWO RATE CUTS THIS YEAR ARE FAIR. LET'S GET MORE FROM BLOOMBERG AND ALIGNS -- GREAT TO GET YOUR ANALYSIS. THE COMMENTS APPEARING TO LIFT THE EQUITY MARKETS IN EUROPE. EURO IS UNDER PRESSURE IN THE SESSION, BUT TO MAKE OF WHAT WE HAVE BEEN HEARING? IS IT REASONABLE TO YOU TO CUTS FROM THE ECB THIS YEAR? >> IT CERTAINLY IS REASONABLE, BUT I DON'T KNOW IF IT'S LIKELY, I WOULD LIKE TO MAKE A DECISION, IF I LOOK UP THE ECB'S LATEST MONETARY POLICY PROTECTIONS, THE INFLATION FORECAST BY 20%, 20 BASIS POINTS IN JUNE, THAT WAS ULTIMATELY TO WHAT IT WAS EARLIER. IF YOU LOOK AT GDP GROWTH, THE RATES ARE HIGHER. THE ROOM FOR RATE CUTS IS IN A SCENARIO THAT'S RELUCTANT TO CUT AND IS GOING TO BE VERY HIGH FOR THE ECB TO KEEP GOING. SO I THINK THAT ONE RATE CUT IS LOOKING MORE LIKELY THIS YEAR THAN TWO RATE CUTS, BUT THE ECB WILL NOT KEEP RATES RESTRICTED INTO IT KNOWS IT'S CONVERTING TO 2%. TOM: ONE RATE CUT MAY BE MORE REALISTIC. EURO DOLLAR DOWN, JUST SHY OF 107. ON THE CURRENCY SPACE IN THE JAPANESE YEN IN FOCUS, IT HAS BEEN, 159 88, SOFT IN THE SESSION DOWN. WE HAVE THE INFLATION DATA OUT OF THE U.S. ON FRIDAY. TALK ABOUT THE DYNAMICS PLAYING THROUGH THE END, SAY YOU WILL BE CRAZY THE JAPANESE FINANCE MINISTER OFFICIALS INTERVENED BEFORE THE INFLATION DATA. QUEX AT THE MOMENT IT IS SEEMINGLY WELL BEHAVED, AND THERE IS LITTLE INCENTIVE FOR POLICYMAKERS TO DO SOMETHING YET. BUT ON FRIDAY, I THINK THERE IS A HIGH CHANCE TO PRINT THE MARKETS OUTLOOK. WHY DO I SAY THAT, BECAUSE THEY'VE ALREADY GOT A HEADLINE INFLATION, CORE INFLATION DATA. FROM A THEY HAVE THE PPI DATA AND I THINK THEY ARE ON A VERY HIGH DEGREE OF CERTAINTY AND THAT WILL SHOW MODERATION, SO THE MARKETS ARE ALREADY PRICED AND DISCOUNTED FOR THIS, SO THERE MAY BE SOME MAJOR VOLATILITY AROUND THE DATA, BUT I DON'T THINK IT'S GOING TO BE SO DISCERNING WITH Z/YEN TUMBLING THE WHOLE LOT. I THINK THAT MAY BE THE CURRENCY AUTHORITIES IN JAPAN MAY BE THINKING THEY ARE NOT GOING TO INTERVENE THIS WEEK. GUY: WE WILL CONDUCT -- TOM: WE WILL CONTINUE TO WATCH THAT STORY. THE INFLATION DATA OUT OF THE U.S. ON FRIDAY AND HOW THAT TIES INTO WHAT'S HAPPENING. OVER IN JAPAN WITH Z/YEN CONTINUING TO BREED -- TO BE IN FOCUS. RECAPPING WHAT'S HAPPENING PREMARKET ON THE BACK OF THE STORY THAT VOLKSWAGEN HAS STEPPED IN. SHARES JUMPING AFTER VW ANNOUNCED PLANS TO HAVE $5 BILLION IN A JOINT VENTURE WITH THE EV MAKER. YOU CAN SEE THE GAINS, 14%. LET'S GET THE DETAILS WITH BLOOMBERG'S ELIZABETH BERMAN IN MUNICH, WHO COVERS THE AUTO SECTOR PARTICULARLY THAT OF GERMANY IN GRANULAR DETAIL. WHAT ARERIVIAN AND VOLKSWAGEN PLANNING IN TERMS OF THE STEEL? ELIZABETH: THEY ARE SETTING UP WHAT WOULD BECOME A $5 BILLION VENTURE TO WORK TOGETHER ON AN EV AND SOFTWARE PLATFORM. BUT VW IS GETTING OUT OF THIS IS RIVINGTON'S RIVIAN RIVIAN -- RIVIAN'S EXPERTISE IN THE TECHNOLOGY TO TESLA. BW HAS WELL-DOCUMENTED STRUGGLES IN TERMS OF REGAINING MOMENTUM IN THE EV SPACE AFTER RUNNING INTO A LOT OF TROUBLE WITH DOING IT ALL IN HOUSE SO BOTH OF THEM CAN HAVE SIGNIFICANT ADVANTAGES. TOM: FROM YOUR UNDERSTANDING ANYONE UNDERSTAND VW, IN SUCH GREAT DETAIL, DOES THIS DEAL MAKES SENSE FOR THEM OR FOR RIVIAN? ELIZABETH: I THINK IT A SENSE FOR BOTH, VW'S IS A TOUGH SPOT. THEY ARE A SIGNIFICANT CARMAKER THAT HAS FALLEN BEHIND ON GETTING ON TOP OF THE EV TRANSITION. THEY HAVE HAD SEVERAL MODEL DELAYS AFTER THEIR SOFTWARE EFFORTS LARGELY WENT OFF TRACK, THEY ARE FALLING BEHIND IN CHINA, PARTLY DUE TO THEIR FAILURE TO COME UP WITH MODELS THAT INSPIRE EV BUYERS THERE. THEN THEY ARE ALSO OVERLY DEPENDENT ON CHINA, THEY ARE TRYING TO BUILD THE U.S. FOOTPRINT, WHICH THE RIVIAN DEAL PARTLY ACHIEVES IF IT COMES OFF. WE KNOW THEY ARE HEAVILY LOST, THAT IS CONCERNED AS WE SEE THE EV DEMAND SLOW WITH CUSTOMERS WORRIED ABOUT TAKING THE PLUNGE ON EXPENSIVE, COMPARATIVELY SO, VEHICLES AMID PATCHY INFRASTRUCTURE AND SO FORTH. GUY: ELIZABETH JOINING US FROM MUNICH. WITH ABOUT 5 BILLION U.S. DOLLARS BETWEEN VOLKSWAGEN AND RIVIAN. THIS IS ON THE BACK OF AN UPGRADE -- PROFIT UPGRADE FOLLOWING STRONG CREDIT QUALITY IS THE LINE COMING THROUGH. THE REDHEAD IS THAT THE BANK NOW SEES FULL-YEAR NET OF AROUND AND BETWEEN 21-23 BILLION DANISH KRONA. THAT IS UP FROM A RANGE OF 20 BILLION TO 22 BILLION. THAT HAS BEEN UPGRADED. PROFIT UPGRADE FOLLOWING A STRONG CREDIT QUALITY ASSESSMENT COMING THROUGH FROM DANSK A BANK. COMING UP, FRANCE SNAP ELECTION TAKES A TOLL ON THAT COUNTRY'S BANKING STOCKS. WE WILL DO A DEEP DIVE IN TERMS OF HOW EUROPE'S BANKS ARE FARING AMID THE POLITICAL RISKS AND EXPECTATIONS OF LOWER RATES. THIS IS BLOOMBERG. TOM: CHECKING ON THE DANCE COMPANY INC., THE STOCK UP ONE POINT 6% ON THE BACK OF AN UPGRADE TO ITS FOUR YEARS OF USE. TALKING ABOUT STRONG CORE CREDIT QUALITY. PROFIT UPGRADE FOLLOWING STRONG CREDIT QUALITY, THAT IS THE THEME WE WANT TO FOLLOW WITH THE HEAD OF EUROPEAN FINANCIAL SCRIPTS AT GOLDMAN SACHS. THANKS FOR COMING IN. TALK TO US ABOUT CREDIT QUALITY. IT SURPRISED MANY THAT CREDIT QUALITY HAS HELD UP ACROSS EUROPEAN BANKS DESPITE ITS HIGHER RANK ENVIRONMENT AND INFLATION CONCERNS. DOES THE BANK STORY TALK OF A WIDER THEME AND DOES THAT HAVE LAKES STILL? >> LEGS STILL? >> WE HOSTED 100 FINANCIAL INSTITUTIONS ON THE KEY MESSAGE COMING OUT OF THAT EVENT WAS THAT CREDIT QUALITY, INVESTORS AND BANKS HAVE ASSUMED ITS BEEN MADE HIGHER. THERE DOESN'T SEEM TO BE A CLEAR INDICATOR THAT THINGS WILL GET WORSE ANYTIME SOON. SEVERAL OF THE CO SAID IF YOU THINK ABOUT THE DE-RISKING HAPPENING ON THE BANK BALANCE SHEETS OVER THE LAST THREE TO FIVE YEARS, BOND PERFORMING LOAN RATIOS COMING DOWN, THAT FEEDS TO A LOWER COST THROUGH CYCLE BASIS. IF YOU COUPLE THAT WITH THE MARGIN SLIGHTLY BETTER MACRO CONDITIONS IN EUROPE, IT WASN'T SO LONG AGO WE THOUGHT GERMANY WOULD BE HEADING INTO RECESSION. WE MAY SEE A BETTER FOR A LONGER BACKDROP ACROSS THE SECTOR. TOM: SOMEONE SAY ON THE FLIP SIDE OF THE CREDIT QUALITY STORY YOU SEE THEM TELLING US THERE MAY BE AN ADDITIONAL TWO GREAT CUTS COMING. BUT PRESUMABLY GIVE SOME REASSURANCE TO THOSE WHO MIGHT BE CONCERNED ABOUT CREDIT QUALITY USING THE PRESSURE. IN TERMS OF NET INTEREST MARGINS, SOME SUGGEST IT'S A CHALLENGE. EUROPEAN BANKING SPACE IN STOCKS OF 30% YEAR TO DATE. IS THERE RESILIENCE FOR THESE EUROPEAN BANKS IN AN ENVIRONMENT OF LOWER RATES? >> ONE YEAR AGO IF WE HAD THIS DISCUSSION HAVING IT COULD CAUSE CRACKS AND AREAS OF LATER CYCLE CREDIT RISK. IT HASN'T REALLY HAPPENED, THERE HAS BEEN IDIOSYNCRATIC EXAMPLES. IF YOU FLIP OVER TO WHAT IT DOES ON THE REVENUE SIDE, WITH THE BANKS HAVE ILLUSTRATED TO PEOPLE SO FAR THIS YEAR AND PARTS OF THE RALLY YOU TALKED ABOUT HAS BEEN DRIVEN BY THE FACT THAT THEY GET PEOPLE COMFORTABLE IN THAT THE NII SENSITIVITY AS WE NORMALIZE IT WITH TWO THIS YEAR THAT WE NORMALIZE IT ONTO A LOWER POLICY RATE. THE BANKS ARE IN A GOOD SHAPE IN TERMS OF NII. IT'S NOT JUST RATES, WE HAVE VOLUME GROWTH WHICH IS A LITTLE BIT MORE CONSTRUCTIVE FOR NEXT YEAR IN PARTICULAR. BENEFITS OF THE HEDGING THEY'VE ALREADY DONE. IF YOU ISOLATE THE RATES IMPACT, THEY COULD PULL IN FUNDING COST. THEREFORE WHEN YOU LOOK AT WRAPPING THAT ALTOGETHER, AT THE MARGIN SOME OF THESE GUIDANCE POINTS AND WE TALK ABOUT THE OTHERS ARE SLIGHTLY BETTER OVER THE LAST THREE TO FOUR MONTHS. TOM: WHAT DOES THAT MEAN FOR DIVIDENDS, BUYBACKS THAT BANKS ARE ABLE TO RIDE, DOES THAT CHALLENGE IN THAT ENVIRONMENT OR DOES IT HAVE LAKES AS WELL? >> THE ENVIRONMENT FOR EUROPEAN BANKS IS A BETTER FOR LONGER BACKDROP. THEY COME DOWN FOR A LEVEL OF 2.5 -50 BASIS POINTS. THAT'S GOOD FOR BANK ECONOMICS. YOU ALSO HAVE A BETTER OUTCOME IN FEES, YOU HAVE A MORE PREDICTABLE OUTCOME IN TERMS OF OPTICS AND IT MEANS EARNINGS ARE MORE PREDICTABLE. YOU TOOK IT FOR THE 30% RALLY WE SAW THE BEGINNING OF THE YEAR. A LOT OF THAT WAS IN A BETTER OPERATING ENVIRONMENT AND BETTER FOR LONGER BACKDROP. WHEN WE LOOK AT DISTRIBUTION, THE AVERAGE EUROPEAN BANK WE LOOK AT WILL PAY 7% OR 8% THIS RATE DIVIDEND YIELD. THIS YEAR AND NEXT YEAR IF YOU ISOLATE, THE IMPACT FOR ECB RATES COMING DOWN IS ABOUT AN 8% EARNINGS RATE OVER TWO YEARS. THE NUTSHELL IS THE BUYBACK INSULATE EARNINGS. TOM: SOME OF THEM DOWN DOUBLE DIGITS AROUND THE PARLIAMENTARY VOTE. IS THIS A BUY THAT THIS OPPORTUNITY, WHAT DO YOU DO WITH FRENCH BREAK -- FRENCH BANKS? >> WE HAVE POLITICAL UNCERTAINTY IS MACRO UNCERTAINTY. MECHANICALLY, IF YOU LOOK AT THE FRENCH BANK TODAY, YOU SEE LET FRED'S WIDENING AND CREATING ABSOLUTE TERMS THAT HAVE A MECHANICAL IMPACT IN TERMS OF COST OF EQUITY. ALL THESE BANKS ARE WELL DIVERSIFIED SO THEY WILL BE INSULATED FROM THAT. IF YOU REWIND 10 YEARS AND THINK ABOUT THE SOVEREIGN CRISIS IN ITALY, WE DON'T HAVE THAT SAME SOVEREIGN BANK AS WE HAD IN ITALY AND FRANCE TODAY. THE BANKS LOOK AT THAT FROM A CAPITAL PERSPECTIVE. IS THIS A BY THE DIP OPPORTUNITY, YOU HAVE TO HAVE A VIEW ON POLITICS WERE MORE PEOPLE ARE QUALIFIED TO TALK ABOUT THIS. THE FUNDAMENTALS OF THE EUROPEAN BANKING SECTOR ARE IN GREAT SHAPE. TOM: THE POLITICS AND HOW THE POLITICS OF FRANCE EVOLVE. HEAD OF EUROPEAN FINANCIALS GROUP AT GOLDMAN SACHS. THANK YOU VERY MUCH FOR THE ANALYSIS ACROSS THE EUROPEAN BANKING SPACE. SO MANY REASONS TO STAY LONG IN THE PARTS OF THAT SECTOR. LEADERS OF FRANCE TALKING TO FRENCH POLITICS. THE MAIN POLITICAL GROUPS CLASHED IN A HEATED TELEVISION DEBATE, THE FIRST OF ITS KIND FOR THIS ROUND. WE WILL TAKE A LOOK TO SEE IF THEIR ARGUMENTS HAVE LANDED WITH VOTERS AHEAD OF SUNDAY'S FIRST ROUND POLE. THIS IS BLOOMBERG. >> -- TOM: DAYS TO GO BEFORE FRANCE FOLKS IN THE FIRST ROUND OF ITS PARLIAMENTARY ELECTION. LEADERS OF THREE BIGGEST POLITICAL GROUPS HAVE CLASHED IN THEIR FIRST TELEVISED DEBATE. LET'S GET MORE FROM CAROLINE. WHAT WERE THE KEY TAKEAWAYS? >> I WISH YOU HEARD FROM THE DEBATE ITSELF, BUT I CAN TELL YOU THAT EACH OF THE THREE CANDIDATES HAD ABOUT HALF AN HOUR EACH AND THEY CLASHED A LOT ON THE COST OF LIVING, ON THE PENSION REFORM, WHICH WAS ONE OF MICRON'S MAJOR REFORMS -- MACRON'S WAGER REFORMS LAST YEAR. THEY SAID IT WAS USELESS AND INEFFICIENT AND WE SHOULD BRING BACK THE RETIREMENT AGE BACK TO 62 YEARS OLD. FROM THE FAR LEFT SAID IT SHOULD GO DOWN TO 60 YEARS OLD BY 2027. THAT WAS ONE OF THE KEY CLASHES BETWEEN THE THREE. HE WAS QUESTIONED ON HOW HE WOULD FINANCE THE COSTLY PROGRAM FROM THE FAR LEFT, HE SAID HE IS GOING TO TAX THE 8% RICHEST PEOPLE, THOSE WHO EARN MORE THAN 4000 EUROS. TOM: THANK YOU WITH THE ANALYSIS ON THE DEBATE IN FRANCE. WE WILL SPEAK WITH THE HEAD OF CANADA'S LARGEST PENSION INVESTMENT FIRM AS THE SECTOR TRIES TO CUT ITS LOSSES FROM SLUMPING REAL ESTATE MARKETS. TOM: STOCKS OPEN HIGHER AT THE ECB GOVERNING COUNSELOR TELLS BLOOMBERG AT TWO MORE RATE CUTS MAY BE IN STORE FOR THE EURO AREA THIS YEAR. VOLKSWAGEN SAYS IT WILL INVEST $5 BILLION IN A JOINT INVESTOR -- VENTURE WITH THE EV MAKER RIVIAN. FIVE PEOPLE KILLED AFTER PROTESTS IN NAIROBI WITH PROTESTING OF THE TAX POLICIES. THE PRIVATE CREDIT MARKET SOME GAVE US THOUGHTS AT THE BLOOMBERG INVEST SUMMIT IN NEW YORK. >> WITHIN THEIR IS A BIG OPPORTUNITY IN CREDIT. >> HUGE INVESTOR DEMAND. >> THE CREDIT CYCLE IS QUITE MATURE. >> WE JUST WANT TO BE ALL THINGS CREDIT. >> WE EXPECT THERE TO MEET CHALLENGES AHEAD. >> PRIVATE CREDIT HAS BEEN TOUTED LIKE THIS AMAZING THING, ALMOST LIKE AN FTS. >> I DON'T THE BOOM IN PRIVATE CREDIT SUGGESTS THAT PRIVATE CREDIT IS A BAD ASSET CLASS. >> WE DON'T THINK THE VERY RECORD TIGHTS WE HAVE ON CREDIT SPREADS ARE REFLECTIVE OF SOME OF THE REAL CHALLENGES WE HAVE IN THE ECONOMIC BACKDROP. >> I LOOK AT IT AT THIS AMAZING FORCE THAT WILL HAVE HICCUPS IN THE YEARS TO COME. TOM: LEADERS AND ASSET BANDAGING -- MANAGING BAKING WEIGHING IN ON CREDIT. THE CANADA PENSION PLAN, THE LARGEST, EARNED AN 8% RETURN IN THE FISCAL YEAR TO MARCH BY EXPOSURE TO STOCKS, CREDIT, PRIVATE EQUITY. MADE UP FOR WEAKER AND OTHER AREAS. JOINING US IS JOHN GRAHAM. ACROSS YOUR INVESTMENT STRATEGIES, WHERE ARE YOU FINDING THE MOST VALUE RIGHT NOW? JOHN: ONE THEME AS WE LOOK AROUND THE WORLD AND ASSET CLASSES IS THERE'S PROBABLY NO SAFE HARBOR. YOU CAN GET A LITTLE WORRIED ABOUT EVERY ASSET CLASS AND WORRY ABOUT IT BUT AS A LONG-TERM INVESTOR, PART -- PART OF OUR THESIS IS DEVELOP A LONG-TERM PORTFOLIO APPROACH, ALLOCATE TO THE ASSET CLASSES AND GEOGRAPHIES YOU WANT TO BE IN AND STAY INVESTED IN THOSE ASSET CLASSES AND GEOGRAPHIES OVER TIME. RIGHT NOW WE ARE SEEING THE MORE INTERESTING OPPORTUNITIES. PRIVATE CREDIT IS A BIG TOPIC. WE HAVE BEEN IN IT FOR A LONG TIME AND I USED TO RUN THE CREDIT DEPARTMENT. WE ARE LOOKING TO INVEST IN PRIVATE EQUITY AND CONTINUE IN PUBLIC EQUITY AND CONTINUE TO DIVERSIFY VESTIGES AND PRIVATE EQUITY. TOM: I WANT TO BREAK DOWN THAT. WE HAVE LONG-TERM INVESTMENT HORIZONS THAT YOU HE HAVE -- THAT YOU HAVE IT. CAN YOU LOOK THROUGH SOME OF THE UNCERTAINTY? JOHN: ONE WAY TO THINK ABOUT IT IS WITH CURRENCIES. WE DON'T HEDGE FOR A DEGREE. WE TAKE THE VOLATILITY IN THE LONG-TERM HORIZON IS SEVEN YEARS. WE CAN WEAR THAT VOLATILITY OVER THE NEAR TERM WITH THE VIEW THAT WE MINIMIZE THE COSTS OVER LONG TERM. TOM: WHAT ABOUT EXPOSURE TO A REAL ESTATE OF THE BROADER SLOWDOWN IN THE MARKET. JOHN: IT IS PROBABLY ONE OF THE EARLY ASSET CLASSES WE GOT INTO. OUR REAL ESTATE HAS BEEN FLAT OVER FIVE YEARS. WE HAVE TAKEN SOME HITS IN OFFICE AND SPECIFICALLY IN NORTH AMERICA BUT THAT HAS BEEN OFFSET PARTIALLY BY THE ASIA PACIFIC PORTFOLIO, LOGISTICS, DATA CENTERS WHICH HAVE DONE REASONABLY WELL. THE QUESTION IS LOOKING RIGHT NOW OFFICE IS TAKING HITS BUT WHERE IS THE BOTTOM AND WHEN WILL IT AN OPPORTUNITY TO BUY. TOM: WHERE IS THE BOTTOM FOR COMMERCIAL AND OFFICE? HOW DO YOU SEE THAT EVOLVING? JOHN: FOR REAL ESTATE ON OFFICE, PROBABLY TRENDS IN THE MARKET THAT MAKE IT DIFFICULT TO THINK ABOUT THE BOTTOM AND ABOUT EXACTLY WHERE WE ARE IN THE TRENDS OF WE WILL WORK -- OF REMOTE WORK. WE LOOK AT HIGH-QUALITY PROPERTIES AND CONTINUE PARTNERSHIPS WITH DEVELOPERS AROUND THE WORLD. TOM: WITH PRIVATE EQUITY, SLOWDOWN WITH TE AS WELL. DO YOU WANT LESS EXPOSURE AT THIS POINT? JOHN: NO, WE DON'T WANT LESS EXPOSURE. WITH PRIVATE EQUITY, PEOPLE USE THE TERM ALTERNATIVE ASSET CLASS. WE THINK MAYBE THAT IS AN ANTIQUATED NOTION AND THAT PE IS EQUITIES AND PROVIDES A DIFFERENT GOVERNANCE STRUCTURE FOR PRIVATE EQUITY. WE HAVE AMPLE LIQUIDITY SO WE CAN BE IN A POSITION FOR A LONGER TIME. WITH PRIVATE EQUITY, ONE THING WE HAVE LEARNED IS THE IMPORTANCE OF BEING PRETTY DISCIPLINED FOR JUST -- DIVERSIFICATION. DON'T GET TO EXCITED OR TOO DOWN ON ANY VINTAGE AND INVEST EVERY YEAR. TOM: DO HAVE A VIEW AS TO WHEN THE PRIVATE EQUITY AND RETURNS WILL START TO TURN AROUND? JOHN: WITH RESPECT TO RETURNS TURNING AROUND, IT IS DIFFICULT TO FORECAST RETURNS. CERTAINLY SOMETHING WE SEE IN OUR PORTFOLIO AND ACTIVITIES IT HAS BEEN SLOWER OVER THE PAST COUPLE OF YEARS. THERE IS CERTAINLY A LOT OF ACTIVITY IN THE 2021 VINTAGE. SLOWER NOW. DISTRIBUTIONS COMING BACK, LESS ACTIVITY. WE WILL HAVE TO SEE ACTIVITY PICK UP IN THE SPREAD NARROW IN THE MARKET. TOM: WHICH OF THE MOST INVESTABLE PRIVATE EQUITY FIRMS RIGHT NOW? JOHN: WE HAVE HAD LONG-STANDING RELATIONSHIPS WITH THE LARGE GLOBAL PRIVATE EQUITY FIRMS AND FOR THE SCALE WE HAVE IT WORKS WELL TO BE A PART OF THE BIG FIRMS. WE HAVE RELATIONSHIPS BEYOND PRIVATE EQUITY, CREDIT, REAL ESTATE. THE BIG GLOBAL FIRMS ARE ONES WE CONTINUE TO DEEPEN THE RELATIONSHIPS WITH. TOM: DO YOU FEEL LIKE THIS FUNDING ENVIRONMENT, DOES THE LEVERAGE ARGUABLY FALLS FOR THE LG'S, SO TO YOU IN THIS RESPECT CRAIG DOES THAT LET YOU PUSH FOR SPECIAL DISCOUNTS AND CHANGES OR ALTERATIONS IN TERMS OF THE RELATIONSHIP AND DEALS YOU ARE PUSHING THROUGH WITH THE GPS? JOHN: THE WAY I WOULD THINK ABOUT THE PARTNERSHIP APPROACH WE HAVE WITH THE GENERAL PARTNERS IS WE HAVE HAD LONG-STANDING, 10 TO 15 PLUS YEAR RELATIONSHIPS WITH THEM. YOU DON'T WAIT FOR THE BOTTOM TO EXTRACT A COUPLE OF BASIS POINTS . WE HAVE LONG-STANDING PARTNERSHIPS WHERE WE HAVE VERY EQUITABLE AND STRONG PARTNERSHIPS WITH THE BIG FIRMS. TOM: HOW ARE YOU THINKING ABOUT DIRECT INVESTMENT? IS THAT BECOMING MORE IMPORTANT FOR YOU AND THE GROUP? DO YOU WANT TO BE MORE PROACTIVE IN DIRECT THAT -- INVESTING? JOHN: FOR ONE HOUR ENERGY AND INFRASTRUCTURE PROGRAM DIFFERENTLY BUT ON PRIVATE EQUITY WE HAVE A MODEL WITH AN LP WITH SOME OF THE BIGGEST AND GPS IN THE WORLD AND WE DO CO-INVESTING, COAL UNDERWRITING WITH THE GPS. THAT HAS WORKED WELL. RETURNS HAVE BEEN VERY STRONG FOR A LONG TIME. THAT MODEL HAS WORKED VERY WELL FOR US. WE WILL CONTINUE TO EXECUTE ON THAT MODEL. TOM: BACK TO COMMERCIAL REAL ESTATE AND OFFICE SPACE AND THINKING ABOUT WORK FROM HOME AND THERE IS A LOT OF UNCERTAINTY THERE. YOU MENTIONED DATA CENTERS AS WELL. I WAS SPEAKING TO THE CEO OF A DATA CENTER BUSINESS THAT THEY ARE LOOKING TO BUILD. ARE YOU MOVING FUNDS FROM THAT COMMERCIAL SPACE, OFFICE SPACE AND REDEPLOYING THEM TO DATA CENTERS AND HOW LONG DOES THAT LAST? TOM: --JOHN: A REAL ESTATE PORTFOLIO AS A WHOLE HAS GONE SIDEWAYS FOR FIVE YEARS. OFFICE HAS TAKEN A HIT BUT THAT HAS BEEN OFFSET BY GOOD RETURNS IN OFFICE IN ASIA AND LOGISTICS HAS DONE OK. WE WOULD THINK ABOUT PORTFOLIO CONSTRUCTION IS WE ALLOCATE TO THE TEAM AND THEY HAVE A LOT OF DELEGATION TO FIND THE BEST POCKETS AN OPPORTUNITY TO INVEST IN LOGISTICS AND DATA CENTERS. THEY HAVE BEEN BUILDING THE DATA LOGISTICS PORTFOLIO FOR A WHILE. ONE THING I DATA CENTERS IS IT IS REALLY A COLLABORATION WITH OUR INFRASTRUCTURE TEAM, REAL ESTATE TEAM AND ENERGY TEAM ALL WORKING TOGETHER ON THE DATA CENTER STRATEGY. TOM: CAN'T HAVE ONE WITHOUT THE OTHER. THAT IS VERY INTERESTING. IN THE U.K., THE PENSION MODEL OF CANADA IS OFTEN TOUTED AS SOMETHING WE SHOULD REPLICATE, THE SUCCESS OF THAT MODEL. CPP PLAYS THAT CRUCIAL ROLE WITHIN THAT. IT IS -- IS IT REPLICABLE? JOHN: IT IS, BUT IT DOES TAKE TIME. WE JUST CELEBRATED OUR 25 YEAR HISTORY. WE CREATED THOSE TWO HAVE A MONEY MANAGER HAMPTON -- HANDLE IT. OVER THAT 25 YEARS WE HAVE GROWN THE PORTFOLIO 632 BILLION AND IT WAS REALLY IMPORTANT, 630 2 BILLION, TWO THIRDS IS FROM INVESTMENT INCOME. REALLY EXPOSING THE CAPITAL TO THE CAPITAL MARKETS AND HAVE IT GROW OVER TIME. THE HEART OF THE SUCCESS OF THE ORGANIZATION'S GOVERNANCE STRUCTURE. PUT IN PLACE A PROFESSIONAL MONEY MANAGEMENT TEAM THAT OPERATES AT ARMS LENGTH FROM GOVERNMENT WITH A SLOW FIDUCIARY DUTY TO MAXIMIZE RETURNS WITHOUT UNDUE RISK OF LOSS. TOM: GOVERNANCE STRUCTURE IS THE SECRET SAUCE. YOU TALKED ABOUT A PACK IN THE RESILIENCE -- APAC AND THE RESILIENCE HEARD IS THERE A PART OF THE WORLD THE NEED A BIGGER FOOTPRINT? JOHN: JAPAN HAS BECOME A HIGHER PRIORITY OVER THE PAST FEW YEARS. AND INDIA WE HAVE BEEN FOR A WHILE AND CONTINUE TO LOOK FOR OPPORTUNITIES IN INDIA BUILDING OUT OUR PORTFOLIO IN INDIA. NEVER GET TOO EXCITED ABOUT A REGION OR ASSET CLASS AND LOOK FOR THOSE OPPORTUNITIES IN THOSE COUNTRIES. TOM: ALWAYS TO A SILVER LENS IT SEEMS. THANK YOU VERY MUCH. VERY FASCINATING. THE CEO OF DECEASED PP -- THE CPP. ITALY'S BIG EU ROPE AS THEY TRY TO STRIKE A DEAL ON TOP POSTS. BUT THEY CAN -- WE WILL GET THE DETAILS ON THAT NEXT. TOM: WELCOME BACK. YOU 8 -- THE U.K. OPPOSITION WILL STIMULATE GROWTH IF THEY COME TO POWER IN THE ELECTION NEXT THURSDAY. ONE SAYS IT IS NOT CREDIBLE THAT GROWTH WILL COME THAT QUICKLY. LET'S SPEAK TO ANAND MENON FROM KINGS COLLEGE IN LONDON. HE HAS SOME VIEWS THAT ARE NOT DISCUSSED THAT YOU WOULD LIKE TO SEE IN THAT POLITICAL SPECTRUM. IN TERMS OF THE POLLING, IT HAS BEEN RELATIVELY CONSISTENCE, 20 POINT LEAD FOR THE OPPOSITION L ABOUR PARTY. WE KNOW ESTIMATES ARE UP TO 5 MILLION PEOPLE UNDECIDED ACROSS THE ELECTORATE. WHAT IS YOUR LEVEL OF COMPETENCE IN TERMS OF PULLING AND HOW THINGS PLAY OUT POST JULY 4? ANAND: WE GET THE BIGGEST PULLING MISTAKE EVER AND LABOUR WOULD STILL WIN. THE POLES HAVE BEEN CONSISTENT FOR A MONTH NOW WITH THE 20% NEEDED. THERE ARE UNCERTAINTIES ABOUT THE DON'T KNOW'S TURNOUTS AND THERE CAN BE SOME WRINKLES BUT THE SCALE OF THE LEAD MAKES IT. TOM: THAT 5 MILLION UNDECIDED IS NOT A WILD CARD YOUR VIEW? ANAND: IT IS A WILDCARD AND IT WILL DETERMINE THE SIZE OF THE MAJORITY. THE MAJORITY OF DON'T KNOWS OUR TORY TEEN VOTERS. MY POINT IS SUCH IS THE SCALE OF THE LABOR LEAD THAT THEY NAILED ON TO WIN THE ELECTION. TOM: BY A MAJORITY. YOU SEE A SOLID MAJORITY. ABOUT 200 SEATS OR AROUND THE 200 SEAT MARK. YOU HAVE A NUMBER IN MIND? ANAND: THAT IS WHERE THE UNCERTAINTY COMES IN. AT THE MOMENT WHAT STRIKES YOU ABOUT LA BOUR VOTES IS THEY ARE DOING WELL WITH A HAVE ALREADY DONE WELL. IF THE NIGHT GOES REALLY WELL IT WILL INVOLVE THEM BEING EFFICIENT AND PICKING UP TORY VOTERS WHERE REFORM IS STRONG. IT COULD BE A MASSIVE MAJORITY BUT A LOT OF MOVING PARTS. TOM: AS YOU BRING IN THE REFORM PARTY, THE FINANCIAL TIMES HAS A STORY ABOUT THE FACT THAT LABOR AND CONSERVATIVES REGISTERING THE LOWEST COMBINED IN A CENTURY. WHAT DOES THAT SIGNAL ABOUT HOW THE POLITICAL LANDSCAPE IS SHIFTING? IT IS SHIFTING --ANAND: IT HAS BEEN SHIFTING FOR A LONG TIME. BECAUSE OF OUR ELECTORAL SYSTEM, 4 MILLION VOTES ONLY YIELDED ONE SEAT. SO THIS FRAGMENTATION HAS BEEN GOING ON FOR A WHILE. THE LARGE PARTIES WERE LOSING VOTE SHARE IN THE RUN-UP TO BREXIT. AND THEN WOULD HAPPEN WITH THOSE TWO ELECTIONS CONSOLIDATED THAT. WE ARE SEEING A CONTINUATION OF A TREND THAT STARTED WELL BEFORE 2016. TOM: WE TALKED ABOUT THE TARGET AND HE WANTS TO SEE 2.5% GROWTH IN THE INSTITUTE FOR ECONOMICS WAS CRITICAL ABOUT NOT GIVING DETAIL ABOUT HOW THEY WOULD FUND IT. YOU HAVE TALKED ABOUT CHANGES THAT HAVE NOT BEEN TALKED ABOUT. WHAT ARE THEY? ANAND: TAKE THE LENGTH OF THE INSTITUTE FOR FISCAL STUDIES. BOTH PARTIES HAVE BEEN QUIET ABOUT THE INCREDIBLY DIFFICULT DECISIONS THAT AWAIT THEM AFTER THE ELECTION. CURRENT SPENDING PLANS, ENORMOUS CUTS TO UNPROTECTED DEPARTMENTS INCLUDING JUSTICE AND WE'VE HAD NEWS THAT THE PRISONS ARE FULL. SO WHETHER WE CAN AFFORD CUTS IN THAT AREA IS AN OPEN QUESTION. TO KEEP TO THE FISCAL RULE WHEREBY DEBT DOESN'T RISE AS A PORTION OF GDP TO AVOID RAISING TAXES THE ONLY OPTION IS MORE CUTS. WITH THE ISS IS SAYING IS A LACK OF HONESTY BECAUSE MOST PEOPLE SUSPECT TO WINS THE ELECTION WILL HAVE TO RAISE TAXES OR FACE UNPALATABLE DECISIONS ABOUT CUTS. TOM: SOME WITHIN THE LIBERAL DEMOCRAT PARTY SAY THEY NEED A CLOSER RELATIONSHIP WITH THE EU THEY HAVE RULED OUT A SINGLE MARKET. IS THAT STILL RATIONAL AT THIS POINT? DOES THAT STILL HOLD UP OVER THE TERM OF THE NEXT GOVERNMENT? ANAND: IT WILL HOLD UP IN THE TERM OF THE NEXT GOVERNMENT BECAUSE IT IS WRITTEN IN BLACK AND WHITE IN THE LABOR MANIFESTO. TOM: YOU ARE TAKING THEIR WORD ON THAT? ANAND: YES BECAUSE IT IS IN THE MANIFESTO. THE STING IN THE TALE OF THAT IS IT IS WITH THE CUSTOMS UNIT AND SINGLE MARKET YOU MIGHT SEE REAL GROWTH, THE SORT OF THINGS THAT LABOUR IS PROPOSING MIGHT REDUCE BORDER FRICTIONS AND WON'T MAKE A MEANINGFUL DIFFERENCE IN TERMS OF GROWTH. TOM: WHAT IS HAPPENING IN FRANCE AND ITALY? THE SHIPS WE SEE ACROSS EUROPEAN POLITICS AND LASER FOCUSED ON FRANCE, BLOOMBERG REPORTED THAT ITALY IS GOING TO BE GIVEN THE OPTION OF CHOOSING ONE EXECUTIVE VICE PRESIDENT TO BE NAMED TO THE EUROPEAN COMMISSION. WE ARE ONLY GETTING THAT IS PART OF THE NEGOTIATION BARGAIN. DOES THAT CEMENT THE FAR RIGHT IN THE EU'S INSTITUTIONS? HOW SIGNIFICANT IS THAT? ANAND: THE FIRST THING IS THAT MALONEY'S GROUP HAS DONE WELL AFTER THE ELECTION IN STRONG POSITION. ON THE FAR RIGHT THEY WOULD ARGUE THEY HAVE BEEN FROZEN OUT BECAUSE THE CENTRIST POLITICIANS GOT TOGETHER LAST NIGHT TO STITCH UP A DEAL WITHOUT MALONEY BEING IN THE ROOM. SHE IS PUSHING BACK AND SAYING ITALY IS THE THIRD BIGGEST EUROPEAN ECONOMY AND SHOULD BE REPRESENTED IN THE TALKS. SHE IS NOW THINK WE NEED PROPER REPRESENTATION. WITH THE ELECTION IN FRANCE, IT IS EASY FOR RADICAL PARTIES TO POINT TO WHAT IS HAPPENING AND SAY THE SAME OLD PEOPLE STITCHING UP THE SAME OLD POSTS DESPITE THE ELECTIONS. TOM: ARE YOU CONCERNED ABOUT WHAT IS HAPPENING IN FRANCE? ANAND: EVERYONE SHOULD BE CONCERNED. THERE IS THE POSSIBILITY OF LACKING A MAJORITY AND THAT MAKES IT HARD TO GOVERN. TOM: FANTASTIC ANALYSIS ON THE POLITICS. THE COUNTDOWN TO THE BOAT, THE PARLIAMENTARY VOTE IN FRANCE, FIRST ROUND OF THOSE ELECTIONS. ON SUNDAY, -- FOR THOSE ELECTIONS ON SUNDAY. VIOLENT PROTESTS IN KENYA OVER CONTROVERSIAL TAX PROPOSALS LEAVE FIVE PEOPLE DEAD. MORE ON THAT STORY NEXT. THIS IS BLOOMBERG. TOM: WELCOME BACK. KENYON PRESIDENT HAS HIT BACK AGAINST NATIONWIDE ANTIGOVERNMENT PROTESTS THAT LEAK -- LEFT AT LEAST FIVE PEOPLE DEAD. THE DEMONSTRATIONS DESCRIBED AS TREASONOUS AND DEPLOY THE MILITARY TO END THEM. IT WAS SPURNED BY CONTROVERSIAL TAXES TO BOOST STATE FINANCES. LET'S GET THE DETAILS WITH THE LATEST. WALK US THROUGH THE EVENTS THAT HAVE LED TO THIS. >> THROUGH AND THROUGH THE MESSAGE HAS BEEN THE SAME FROM THE PROTESTERS, REJECT FINANCE BILL. THEY SAY IT WILL TAKE A LITTLE LIQUIDITY THEY HAVE LEFT IN TIMES HAVE BEEN TOUGH FOR THE COUNTRY AND BUSINESSES ARE NOT MAKING PROFIT LIKE THEY USED TO BACK THEN. THIS FELL ON DEAF EARS DESPITE THE FACT THAT THE PROTESTS WERE HELD NATIONWIDE. PARLIAMENT WAS INFORMING THE PRESIDENT. THEY WERE PROTESTERS APPROACHED PARLIAMENT, BREACHED THE GROUND AND POLICE OPENED FIRE ON SOME OF THEM. SOME WERE SHOT DEAD. INTERNATIONAL MEDIA WAS BROADCASTING SHOWING LIFELESS BODIES. THESE PEOPLE LOST THEIR LIVES AND BLOOMBERG CAN CONFIRM THAT 17 PEOPLE WERE SHOT DEAD AND THE HOSPITAL IS APPEALING FOR BLOOD. THAT SHOWS YOU THE AMOUNT OF DAMAGE THAT WAS DONE IN THE LAST 24 HOURS IN THE COUNTRY. TOM: IS THERE ANY INDICATION AT ALL THAT THE PLANNED TAXES COULD BE SCRAPPED OR RECONSIDERED? >> THIS BILL RIGHT NOW SITS IN FRONT OF THE PRESIDENT AND HE GAVE NO INDICATION OF THAT. HE ADDRESSED THE NATION AT 9:00 P.M. IN THE EVENING AND THERE WAS AN OPPORTUNITY TO EXTEND AN OLIVE BRANCH. HE DIDN'T DO THAT. HE WAS VERY BULLISH. THE PEOPLE SAY THIS IS JUST THE TIP OF THE ICEBERG AND THERE ARE DEEPER PROBLEMS. DAY IN AND DAY OUT THE GOVERNMENT SAID THERE IS NO MONEY AND THEY ARE CREATING CONSTITUTIONAL OFFICES AND FUNDING THEM AND DONATING MONEY AND DOCTORS AND TEACHERS ARE NOT EMPLOYED. WE ARE LIKELY TO SEE MORE PROTESTS CONTINUE. TOM: THANK YOU FOR THE CHALLENGES FACING THE KENYAN GOVERNMENT AND THE PEOPLE. PREMARKET, CORPORATE NAMES ON THE AGENDA TODAY, NVIDIA AFTER GAINS OF YESTERDAY, 7% AFTER THREE DAYS, CURRENT TO BUILD. PREMARKET UP 2.5%. RIVIAN WITH THE INVESTMENT AROUND VW ALSO SOARING PREMARKET. UP 35%.