until the start of cash equity trading. i'm francine lacqua in london with tom mackenzie. tom: china's export engine runs out of steam in may. european stocks open imminently. s.e.c. taking aim at coinbase a day after suing binance. plus, we are live in france for the global conference, and in berlin with newsmakers from both events this hour. francine: let's look at the futures, we are 20 seconds from the market open. a lot of focuses on disappointing chinese data. liberty economics is expecting a stimulus and possible interest rate cut. traders are looking for more government support but across the world. tom: the question is if bad news is good news and it comes to the data out of china, will the

bleak data picture pressure officials in beijing? bloomberg economics expects a cut in june. that is feeding into the asian session, reflecting what happened in the u.s. the spanish ibex down 0.1%. what happened in the u.s., you ended in the green with upside but the broadening out of the rally from the bull market for the s&p, but the moves in financials suggest maybe that has further to run. the ftse 100 down 0.2%. the cac quarante off by nine points. in germany the dax is flat. the futures stateside pointing flat after modest gains yesterday. there is a debate over whether this is a bear market -- a bull market wrapped up in bears clothing, or how much further that has to run. brent down 0.8%.

the gains have been wiped out, the impact of opec-plus on this oil market in question. the turkish lira falling to a fresh record against the u.s. dollar. down close to 5.5% as increased speculation that the government under erdogan will step back to supporting the currency. bitcoin down 0.4%. francine: predicted global economic growth will slow to 2.7% in 2023. it is interesting to look at the breakdowns of what we heard from the ocd -- oecd. france gdp expected to grow in 2024. it is not as bad in certain parts of the world. the trend is towards a slow

recovery but a recovery nonetheless. chinese exports fell for the first time in may adding to risks and the second largest economy is global demand weakens. let's look at the global market reaction with kristine aquino. we need to talk crypto and china and data in general but there is a lot of currency moves. what are you watching for? kristine: a lot of crosscurrents in the currency market. i'm watching for a resurgence of dollar strength that would add to the pain and the rest of the currencies across the world. we are seeing continued resilience in the u.s. economy that supports the idea that while the federal reserve may not move away from the idea of further rate hikes beyond that month. we're seeing a pullback in currencies, the turkish lira,

domestic political reasons can shipping to that there has been a softness in the currency complex apart from the dollar recently. a lot of that owes to the fact that the u.s. labor market looks incredibly strong and resilient. tom: u.s. s&p close to the 4300 level, within a hair of a bull market. there is a lack of concern of the breadth of that rally. does this have further to run? kristine: there is definitely a lot of arguments for the run of that bull market, we are seeing it broadening out, which is a good sign. we are also seeing more positive outlooks when it comes to corporate profits, and the most recent earnings season, we have seen companies bracing for a potential downgrade in earnings outlooks but we have not seen

that materialize. that really is part and parcel of the state of the u.s. economy that is proving to be quite resilient. we are seeing that definitely in the corporate space. there are supportive reasons for the bull market to continue. naysayers will say it is too expensive at these levels. it has been concentrated in the biggest stocks on the s&p 500 but the broadening size is encouraging for the state of this current bull market. francine: when you look at what is going on with the sec and crypto, they are getting flattened. where does this end? kristine: i'm sure it is spooking a lot of investors, particularly crypto tourists who piled on at the start of the year hoping to get to the 30 k level in bitcoin. we have seen a pullback since then. it will take some of the froth

out of that market given that the regulatory concerns continue to plague the crypto currency market here. francine: thank you, kristine aquino, bloomberg markets managing editor. the u.s. sec is suing coinbase accusing crypto of breaking rules and letting users trade tokens that were unregistered securities. >> this is actually a straightforward securities case, but it is in the context of crypto. let me say crypto tokens come the investing public needs that same disclosure, a fair and truthful disclosure. in the crypto space it is largely built on a business model that is noncompliant with security laws. people are combing going with the customer funds.

it would be as if the new york stock exchange is operating a hedge fund and trading against their customers. or add to it that they do not have proper controls to avoid manipulating trading on the platforms. binance had a sister organization, so absolutely it is straightforward protect the public through the securities law, build confidence and trust, but in the context of crypto. david: you have said there are custody rules that financial advisors have to pay attention to with something like binance. are you looking for possible violations? gary: i will not get into any one investigation or case that we have not yet brought, but i would say this, to all of those investment advisors that may be interested in trading and crypto, your client funds under an existing 2009 rule have to be

proper qualified custodians, and that is not what you have on binance. make no mistake. in fact, as we alleged, your funds in custody at binance, you do not know really where it is. you know who is controlling it but may have moved it to a sister organization. there is another one we alleged billions of dollars of funds were moving to. tom: the sec chair speaking to david westin. in the interview he spoke about the potential for the entire industry to collapse, saying, quote a house of cards." strong opinions from the sec chair as he pursues this action, concerned about co-mingling of these parts of the market. crypto looking at bitcoin, trading at 26,833, down 0.3%.

coming up, the latest on the down breach in ukraine -- dam breach in ukraine as villages face an environmental catastrophe. that is next. this is bloomberg. ♪

tom: welcome back to the open.

11 minutes into the trading day. the benchmark down close to 0.2% after the gains of yesterday. futures pointing to losses on the s&p. retail is leading the charge. that is one sector firmly in positive territory thanks to a beat coming in from inditex, getting over 2%. a loss and chemicals, basic resources, health care, food and beverage. the turkish lira is back to a fresh record low, below 23 to the u.s. dollar on speculation. the authorities after erdogan won the presidential race, will loosen with the 12th straight day of losses for the turkish currency, trading down close to 7% versus the u.s. dollar on an intraday basis. individual stocks on the move, inditex the beat coming through

with first-quarter earnings, a little under 1.5 billion versus the estimates of 1.3 billion. they have done a good job focusing on larger stores. investors rewarding those results for inditex. danska bank putting woes around money laundering behind them, getting 4.3% and raising the profit target. a return on equity of 13% in 2026. they are pledging dividends of around 7.2 billion by 2026. ericsson, the eu was looking at a mandated ban on huawei across the european union for national security reasons. a third of country have a ban in place, so ericsson could get a lift on that news. francine: president biden has

vowed assistance to ukraine after a dam was breached. the attack should be considered an ecological weapon of mass destruction. >> what happened today without any doubt, it should be called the biggest man-made disaster. russia has proven once again to the whole world that they act terroristic state. this disaster is an ecological weapon of mass destruction. francine: joining us is bloomberg senior reporter, mark champion. ukraine accusing russia of blowing the dam up. mark: there is a huge amount we do not know. the u.s. and u.k., supporters of

ukraine, neither have come out to say this was russia. they are still looking at it. the finger of suspicion points to russia because they have been in control of the dam. ukrainians have said the russians are mining it we do not know. tom: what do we know about the impacts on the agricultural sector. ? the last few days we prices are skyrocketing? what is the impact on the people around the dam? mark: it will be really big, this is the agricultural south of ukraine. already scarred by the war and divided. the front goes along the river, so you have a lot of grain producing land, the famous black earth of ukraine on both sides of the river. the real difficulty is water from the reservoir was

providing irrigation for that land. it goes far beyond the river, so you have movement and grain prices yesterday. tom: thank you very much on the latest in terms of the impacts of the destruction of that dam. intelligence agencies still trying to assess as to who is responsible. a number of people pointing the finger at russia. coming up, we go to per s\\\\ that interview is next, this is blue. -- this is bloomberg. ♪

francine: welcome back to the open. 18 minutes into the european trading day, the focus on the china data and what that means for world growth. and what that also means for some policy reinforcement to support the economy going forward. let's get to the bloomberg first word news and rishi sunak will seek for closer ties to the u.s. the two day trip is his most extensive action with president biden, and will see him meet congressional leaders. the leaders are due to discuss russia's war in ukraine, chinese

aggression and artificial intelligence. the sec has widened it sweeping crackdown on crypto by coinbase for allegedly running an illegal exchange. the biggest exchange avoided rules by letting users trade tokens that are unregistered securities. coinbase criticized the sec, saying it has demonstrated commitment to compliance. ubs says there will be a grace period of two years before switzerland imposes higher requirements to its acquirement of credit suisse. it is based on an integration plan to be developed by ubs. u.s. secretary of state anthony lincoln is planning a visit to china in the coming weeks for talks with top officials, possibly including president xi jinping. he planned to visit beijing and fed. but scrap the trip after washington identified what it said was a chinese spy balloon

crossing the u.s. the confederation of british industry has won the support of 93% of members who voted at a meeting to decide the cbi, as members support a reform program aimed at winning back trust following multiple allegations of sexual assault amongst staff. a loss of the vote could have led to the imminent collapse of the organization. boeing will delay deliveries of his dreamliner after uncovering defective parts. they say it may affect 90 already built jets and a few being assembled. regulators have not decided if they need to take any action for jets in service. the company expects to deliver 70-80 dreamliner's this year. tom: artificial intelligence has been central to the upside for these equities, and it is important for israel's economy.

some describe it as the biggest opportunity, according to the minister for economy and industry. he spoke exclusively with romaine bostick. >> look into the future, israel is focused on clusters where we are really good. you look at high-tech and homeland security, huge and big, and there is a lot of overflow to civil applications that are really smart, and satellites and space. then you have the medical arena where israel is really powerful with a lot of researching great innovative ideas. agro tech, food tech, the biggest opportunities israel has is ai. you need a lot of brainpower, talent, and israel, a lot of that talent you will see israel leading many initiatives and

in artificial intelligence for health issues, homeland security. there is no doubt in my mind. we are geared to look at the opportunities of ai. i believe it can be a game changer, similar to the internet. romaine: it could be that big? >> possibly that big for tech oriented countries. israel has about 10% of the labor force in tech, and we will grow. my goal is to get to 25% within 20 years, and we will be a major player in the global market. romaine: where does the growth come from? >> naturally, the global market. romaine: if all the companies are fighting for this piece of pie, just as many companies in europe and asia looking for a piece of that pie. >> i know but each one of us has a competitive advantage in technology and in many areas.

everything is tech, high tech, agro tech, desert tech. you will see is really companies excel nai, -- in ai, doing really well in the global marketplace, lots of global relationships. i believe you will see us next year promote many of these innovative ideas, and we are promoting that internally and helping our entrepreneurs go global. francine: that was israel's minister for economy and industry speaking to bloomberg's romaine bostick. the conversation is shifting when it comes to private markets at big firms get bigger in a fragile comic backdrop, threatening the survival of the small counterparts. a three day conference kicks off in berlin today. dani burger joins us. dani: thank you.

i am here with carlisle and marco de benedetti, managing director, carlyle group. last time we were talking, i remember specifically you said it is dangerous to make addictions but you like to be a little dangerous. you called the peak, and the slow down, when does the revival come? marco: i don't know, fro a macro view, it is still uncertain. i think it is a cautious second half of the year from a macro point of view. that does not necessarily mean it is a bad time for our business. usually the best is during this period. i am quite optimistic from an investment point of view even though i think the macro is still going to be a few quarters away.

dani: does the macro bounce act mean there are things you use to invest in that you would not now in this environment? marco: not really hear our type of investment is micro based, around the individual asset we identify, and what we can do without asset, how we can develop it and strengthen the management team. little less cycle dependent. you have a consistent performer through cycles and not overly cycle dependent. dani: how hard is it to originate deals and get the financing? what does that look like in this environment? marco: clearly there has been a significant slowdown. we saw it on the volume of transactions. usually buyers tend to adapt to the new pricing environment faster than sellers.

you have a spread, and no volumes. profits of q4 last year, we are seeing it come back. the financial market is getting back to a more functional level. buyers are a bit less catastrophic. you look at the performance of the european economy, better than what people anticipated. the resilience of the economy gives some comfort to buyers, and sellers come of old days are gone for good. we have seen that spread get a little more. we see it filling up quite nicely. i expect q2 through q4 we will see yet, most likely not to the level of 2021 but that was the outlier. if you take a more long-term average, deal flows are not the problem.

people like us have the ability, and it is about the selection. the deal flow is not the problem. the financial market is starting to come back. the conditions are there. dani: some signs of life. in the economic difficulty opportunities, sports is a big one. i know you are a football fan. talk to me about how your talks are going and if you are bidding? will they sell media rights? marco: it is a process that is going on for a while. that is been a theme in europe. it happened in spain, in france. we see that as an interesting way to fund the development. italy is following the same path. finally an advisor is therefore

the process, so that should star and we shall see. football and sports in general have proven to be a valuable property that has further potential to exploit. we believe in its potential. dani: what about the teams? a minority stake was floated. marco: not really. we were looking at some financing possibly. i am a little skeptical because i tried to invest in businesses where as much as possible we are in control of the outcome. in sports the relationship between the success from a sports point of view for your ranking and winning, and economics, that is not such a

straightforward thing. it is a little tricky for private investors, and we stay away from those. dani: i want to talk to you about china. you have deep expertise in consumer and luxury goods. lvmh has skyrocketed, from the companies you look at, is the chinese consumer strength here to stay? some of the macro has disappointed. marco: specifically in the luxury space, we have to remember 80% of the luxury can sumer -- luxury consumer, most brands are in europe. most go were the customers are. obviously there is asia. china alone represents 30%-30 5% of luxury spending. for any luxury company, china is important and essential.

that has gone through cycles. we have seen since the end of last year, the first quarter was strong, the come back of china was important, we have to see how it continues. for any of those companies, you cannot forget china. it is such a relevant part of the luxury market that is fundamental. everybody was hoping for the come back, and it was strong. it is encouraging. dani: marco de benedetti, really great to speak to you this morning. back to you. tom: dani burger and marco de benedetti, managing director, carlyle group. thank you. they were talking about the importance of the chinese market. we have to remind if we are close to a tipping point for authorities to act more

aggressively. bloomberg economics thinks there will be a cut to benchmark rates as early as mid june. that is why some stocks in hong kong rallied on the back of that . in europe, modest losses of 0.1%. a little bit of lacking direction. one corporate story jumps out, inditex. that is lifting the ibex. the dax down 20 points. the ftse 100, we have the first annual drop in house prices at halifax. ftse 100 down 0.1%. in the retail space, it is taking some spotlight for now. retail gaining 2%. it is all about inditex. jeffries describing the results for the first quarter as really impressive. there is the prospect of margins for inditex getting back to

pre-covid levels. they focused on larger stores and efficiencies, that is really paying off for inditex. health care and energy, a reminder that the upside from brent wti on the saudi cut has faded. so much for the saudi pushback. francine: iea global conference is in france today. hundreds of senior leaders are joining the event around the theme of energy efficiency. we are joined from the conference. >> i'm joined by the chairman of schnider electric. thank you for being with us. you make electric devices and technology, how much do you

think growth from electrification will be counteracted by the energy efficiency? jean-pascal: if you take the big picture, we need to drastically reverse the trend of combinations. it is not a revolution -- it is not evolution but revolution. it is a combination of three things, we have to decarbonize fossil fuels, and have reserves for many years to come. we have to electrify. you eliminate carbon. on the server point is energy efficiency. energy efficiency makes 50% of emissions, so it is critical. people speak about supply.

the energy transition is energy efficient and for every company this is a priority. it is going to slow. we should be multiplying by 10 of energy efficiency techniques. that is possible now because we are moving to techniques that are more passive, on the roof send windows to digital technologies. smart rooms and buildings. smart metering can be deployed. this is a challenge. going from technologies of the past to the future and complement and what we do. >> is the tightening of financing conditions not helping? could this delay efforts on the demand side? jean-pascal: energy efficiency is one of the few investments where you safeguard afterward.

make a one-shot investment into green capex. the price of energy has risen so much on the risk of energy availability in the past few years that the retail investment has been divided by two in many places. now on the financing of that one-shot investment that brings in 20 years of savings, we have to engineer better financing solutions. this is what government is working on. 70 countries today are looking to place incentives for energy efficiency. that is changing fast. >> what are the challenges for the increasing amount of solar and wind power? jean-pascal: it is an evolution, the first point is another big part of the evolution is when

you electrify without knowing it, you're becoming more efficient. you go straight from clean air to the wheels, it is 90% efficient, your car. when you do that, you are already getting much more efficient. we can all become producers of clean energy, on your roof. we can equip your houses with that. you alleviate pressure because you do a lot of things locally, you consume your own energy. we are working with many utilities, we are one of the leaders. this will help us better able to share energy, buying energy,

storing energy when it is green or cheap. or at the same time saving energy when we have a surplus. that world is very different, it is the same revolution as the internet was years ago. >> we are seeing cyberattacks in physical attacks on energy infrastructure. what technology are you developing to prevent these attacks? jean-pascal: the company schnider is investing tons in that as well as all the government agencies. we are working like this together to make sure the differences on cyberattacks are becoming higher. it is often safer to be connected with what is happening than install a moat around your operation.

going from whatever produces energy to whatever consumes energy is safer than the system we have today. >> schneider electric is investing tons to protect the energy infrastructure from cyberattacks. it is one of the top topics discussed here at the iea's 8th conference on global energy. tom: thank you. coming up, we will speak to sumant sinha, chairman / ceo, renew wind power. that is one of the largest renewable energy companies in the world. that conversation is next. this is bloomberg. ♪

francine: welcome back to the open. a bit of pressure across-the-board. u.s. futures are down, european shares definitely down. a bigger than expected drop in chinese exports. concerns on the strength of global demand. india presents a massive opportunity for clean energy developers as it aims to triple nonfossil fuel power capacity by 2030.

we are pleased to be joined by sumant sinha, chairman / ceo, renew wind power. welcome to bloomberg. when you look at the market in india for a nobles, how do you describe it? there are opportunities but challenges including import taxes. sumant: if you look at the market in general, it is the third-largest in the world and growing 6% a year. it is a large market growing rapidly. within that there is a massive transition happening towards clean energy driven by the government under prime minister modi. the government has a vision to get up to 500 gigawatts of renewable capacity by 2030, which means almost a third of energy in india will come from the renewable sector. i think it is being driven by policies on part of the

government, and that is making life for companies like us easier and opening market opportunities for us as well. we need to almost have a three times or four times increasing capacity. we have to add more wind and solar capacity, adding 15-20 gigawatts every year. the government will look to increase that to 50 gigawatts a year after we meet the target by 2050. that is putting out massive opportunities for companies like us. it is an opportunity a $500 billion. tom: what are the challenges? is the import tax something you are working with the government on? is that a headwind for you? sumant: i think what happened is a couple of years ago the indian government made a strategic decision to create a domestic

manufacturing industry rather than being reliant on imports. tom: from china? sumant: that is right. a strategic call the part of the government. they want to set up domestic manufacturing capacity. we as a company are putting up a solar plant, beginning our first plant commissioning by the middle of this year. companies like us are setting up domestic capacities. over time you will see the solar value chain set up in india, which is what the government's intent is, foster self-reliance within the country. we can start shipping out to other countries once the supply chain is set up, and position india as the plus one to china from a solar supply standpoint. i think the world requires diversification. the domestic policies are

pushing in that direction. a fairly important strategy. in the short-term there are disruptions as new capacity comes online and we start squeezing imports. that is temporary in nature. eventually it will lead to a domestic industry and centralized. francine: what kind of market share and how rapidly will that increase, and what does it mean for your company? sumant: today wind and solar account for 12% of india's total power generation, but if you add hydro and nuclear which are in some ways clean, that is 25%. by 2030 wind and solar will be one third, and if you add nuclear and hydro, that goes up to almost 50%. by 2030 almost 50% of india's power supply will not come from fossil fuels, which is a significant change. very few countries by that time will have such a large percentage of nonfossil fuel

based energy generation. tom: we know you are looking to expand your footprint overseas. there is reporting about the project in egypt doing feasibility studies. get us up to speed on how that is progressing. sumant: what is happening is in the clean energy transition we are looking at opportunities beyond the electricity or power sector. as we know the development of the clean hydrogen and clean ammonia system has not been able to happen. mandates are coming in and the european union does a big push to generate green hydrogen every year. in india the target is 5 million tons by 2030. every country is setting targets for decarbonizing. that is giving a lot of opportunities to companies like ours. this new business will not be confined within borders but -- tom: do you have customers in egypt? sumant: we are looking at

opportunities to manufacture in certain countries including india. egypt is another country we are looking at. we are looking at other geographies as well. customers will be in india, in the far east, so the idea is to export. francine: that means a huge infrastructure. tom: how quickly could that come online? sumant: each project will require several billion dollars of investment. it is not something anyone company can make on its own. between project developers and financial investors, you will see different kinds of project structures coming into form and setting up green hydrogen projects. will see more collaboration providing different skill sets and capital coming in on these projects and sharing risks. tom: your largest shareholder,

are they taking you private? sumant: i obviously do not know because i am not sitting in their shoes. tom: we really appreciate you coming on. sumant sinha, chairman / ceo, renew wind power. let's get the bloomberg first word news. ubs says there will be a grace period before switzerland imposes requirements to its acquirement of credit suisse. that will be phased in from early 2026 based on an integration plan to be developed by ubs. prime minister rishi sunak will seek closer economic ties to the u.s. during his first visit to the white house since becoming leader. it will be his most extensive interaction with president biden. will meet congressional leaders and company executives. the leaders are also due to discuss russia's war in ukraine, chinese aggression, and the regulation of ai.

ukraine is rushing to evacuate people downstream from the damage to the dam. they look to assess the humanitarian and ecological damage from the widespread flooding. up to 18 million cubic meters poured through a massive breach in the dam, swamping communities along the river. ivan menezes has died after an illness. he was receiving treatment. he transformed his company into the world's biggest premium drinks country after 10 years at the top of the business. he is succeeded by the company's interim ceo. ♪

francine: welcome back to the open. 52 minutes into the trading day. we are seeing a reversal come on down 0.2% for a lot of stocks he read a lot of investors are worried about the data out of china and what it means for the strength of global demand. we are seeing pressure on commodities. the pga tour and saudi backed liv agreed to a merger.

>> obviously it has been a very dynamic and complex couple of years. for players, i'm not surprised, this is an awful lot to ask them to digest. this is a significant change for us in the direction that we were going, but as i'm trying to explain, and i will continue to explain as we go forward, this ultimately is a decision that i think is in the best interest of all the members of the pga tour. francine: matthew, when the news broke a lot a people had to take a double take to read the story twice. after saying this would never happen, why are liv and pga changing corso dramatically? >> as you say, it has been

acrimonious between liv and the pga. they say they are doing this for the love of golf and to promote the sport but when you go behind the scenes on what is going on in the legal battles, they are increasingly dirty and it is starting to drag in the families of the victims of 9/11. there was a lot of mudslinging. this merger enables both sides to draw a line under that and move on and stop spending money on legal fees, stop fighting in public. and try to unite. instead they will be focusing on golfing in the future. tom: who is now in charge of global golf? was this the pga buckling to an avalanche of saudi money?

>> if you look at the statements that have come through initially, what will happen is the pga will continue to hold the majority of the economic rights within the entity which does not have a name. if you look longer-term, the chairman of this new golf co, and the saudi sovereign wealth fund will have first right of fusil in any new investment as the sport grows and develops. whatever investment plans come up will be backed by the majority of saudi money. we will see the saudis increasingly take on a more prominent role in leading this new entity as time goes on, and putting them at the top of golf's most important global body. tom: matthew martin in riyadh,

our bureau chief. before we take you to the end of the hour, losses of about 0.1 percent across european indexes. the ibex remains in positive territory, lifted by the optimism around inditex. jeffries sang has the potential to get back to pre-covid margins. futures in the u.s. down 0.1%. that is it for the european market open. "surveillance: early edition" is up next. this is bloomberg. ♪

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>> this is "bloomberg surveillance: early edition" with francine lacqua