Transcripts For BLOOMBERG Bloomberg 20240703

Good morning, welcome to daybreak europe. U. S. Secretary of state andy lincoln headed to tel aviv and President Biden issuing a warning to iran. Israel vows to wipe hamas off the face of the earth. As investors weigh the geopolitical risks, markets bracing for the latest inflation data out of the United States. Geopolitical and bond volatility and of course the tragedy in israel as well as a quick check on the markets because there is a lot for investors to digest. At the end of the day the stock market is a forward looking asset but it is a sensitive asset. Even though you are seeing green on the screen, do not let it full you. These are defensive trades. Let me walk you through that psychology. Pairing the gains and the pressure you have seen in the past couple of sessions coming off the conflict we are seeing in israel at the moment. At the same time you are seeing the United States are to get defensive, outperforming the regular s p futures which tells you the tech trade is very much at play. It is a very defensive play leading the gains higher. You need to look at the bond market volatility, the idea that a lot of these Federal Reserve officials are starting to comment about what the future actually holds for the u. S. , europe, and every Global Economy is crucial. The 10year yield as well. We start to see a little bit of that volatility, the real heavy hitter is going to be the currency. Right now you are seeing weakness in the greenback, and i think the idea that risk sentiment might be coming back a little bit is the wrong message. The cpi data is very much in focus. We will talk about how that intersects with the economy pressure, brent crude trading just shy of 86 a barrel. Thats the cross asset picture, lets get to the top story. Israel signaling a major ground offensive in gaza as Prime Minister Benjamin Netanyahu promises to destroy hamas. The combined death toll from the conflict climbs to more than 2400 people. We are fighting with all our strength on all fronts. We went on the offensive, every hamas member is a dead man. The mass is isis and they will be crushed and eliminated just as the world crushed and eliminated isis. Piece will require that the israeli side recognize that we exist, that we are humans, and we have National Pride and aspirations and these National Rights and aspiration should be fulfilled, and there is global consensus of that. For people to live in peace and harmony as Good Neighbors which would require the end of occupation. Kriti joining me is our daybreak middle east and africa anchor as well as our correspondent in tel aviv. Talk a little bit about the latest that we are seeing when it comes to the moves and the geopolitical tensions. What are your thoughts . Yousef basically what we are looking at is the trip of the u. S. Secretary and the u. S. Secretary of state, antony blinken. He will meet with the israeli administration. The second part that trip will involve him going to sit down with the jordanian king and also potentially the president of the Palestinian Authority who had control over the west bank. That could be a way to get a little bit of indirect overlap with hamas to find a way to have diplomatic options. Because at the moment, for the israelis, the priority is to take out hamas, but there needs to be what comes after, the refugee crisis, egyptians will push back on the idea that the refugees could temporarily be put somewhere in the north of sinai. Kriti talking about the geopolitical pushback in the region, talk about the tape from saudi arabia and iran. Yousef the saudis have been at this since the beginning, but what happened yesterday was actually a milestone because the saudis and iranians have not been getting along for a long time. Now that the crown prince himself got on the phone and spoke with the iranian head of state, and they spoke about the conflict, the war that is underway, and this happens right as the arab league gathered as well in the last 12 hours and put out a statement calling for a two state solution. Engine the chinese are also looking to get in touch. So there could be a lot of traction because with every life that is lost, the pressure keeps mounting that this thing can get completely out of control. Kriti the idea of pulling other players into this particular part of the middle east i think is crucial. The chances of a regional conflict escalating and becoming like syria or lebanon and jordan, what are the odds of that . Yousef they are increasing. We had activity on the northern border of israel in the southern border of lebanon, there were reports of significant swarms of drones that might be inbound or some alarms that were triggered. But at the end of day what it is going to come down to is to what extent Israeli Intelligence officials can establish that iran was significantly involved with planning this attack. At the moment the understanding is that they mightve been aware of the timing of this attack, so that could determine to what extent hezbollah gets involved, then iran hits hezbollah then they might need to defend their allies in the south of lebanon. Kriti stay with us, i want to bring in our correspondent on location in tel aviv. We just got the water take from yousef, what is going on where you are . The main Political Development here in israel has been the founding of this unity government of Benjamin Netanyahu , presided over by him, that brings in the opposition. Overnight we been hearing from Israeli Defensive force is saying that been targeting commanders and the infrastructure of hamas and they have conducted extensive bombing and striking within gaza. We know that the death toll in gaza has exceeded 1200 people, thousands and thousands more have been injured and of course i do not have electricity, food and water. A dire situation, in terms of next steps, we understand from Defense Forces that we have 300,000 Ground Troops amassing near gaza. This is a huge number people that are positioned to make preparations for the next stage of war, which will come when the timing is opportune and fit for our purposes. That is from the idf. If they do move in on the ground, the huge civilian population within gaza, two moon people there and the countless number of hostages that were taken over the weekend that are still being held. Kriti and the density of gaza itself, its one of the most densely populated in the world, even more so than a lot of the major capitals around the world as well. Talk to us about the emergency government that has been formed, what do we know . It is presided over this war cabinet that includes the defense minister and the leader of an Opposition Party in israel, and until this saturday there has been no shortage of opposition to this government. That rbc changed with all of the attacks, so the war cabinet and the government is just a government that is focused on more. They are suspending all other bills, all business will be focused just on executing whatever comes next in this conflict and it really is significant that the opposition has been brought in here, because until then, i was there six months ago and sometimes you had over 100,000 people protesting the netanyahu government, mainly in tel aviv, but this divide that has clearly evaporated since saturday. Kriti thank if your analysis and for giving us the geopolitical context as well. Crucial developments, we will bring every single update as we get it and a truly tragic humanitarian situation over in israel. Geopolitical risk is just one part of the story when it comes to the markets. You also have inflationary worries that still exist. More fed speak will factor into the market narrative. Take a listen to what some more of the governors had to say. The nominal side is going in the direction we want. We are in this position where we will see what happens on raids. The transition to a more patient approach was warranted for a number of reasons. In particular, it reflects the fact that we are likely perhaps at the peak for this tightening cycle. With the risk of inflation remaining persistently high, we are closely balanced with the risk of slowing activity more than needed to achieve price stability. Kriti our guests joins us from the Economics Team from hong kong. Walk us through the what this actually means. We started to see hawkishness feedback into the narrative, but how much of a difference does it really make . Its interesting to see how the narrative has evolved. We just had those fomc minutes from the last meeting. It feels like so long ago that that happen. We had a big surgeon yields and its much more reflective of the conversation youre hearing out of these fed officials in recent days. They are expressing a lot of caution. It seems like theres a bit less hawkishness now. It wasnt that long ago we had a policymaker survey that was largely expecting another hike before the end of the year. It does seem like they are bit more keen to stay put and feedthrough on the higher for longer narrative but hold off on another Interest Rate hike. What ive heard a couple of days ago i thought was one of the more relevant lines from all the fed speak happening this week, which is it is still a data dependent moment. We had some high jobs data recently. It seems like caution is warranted right now. Kriti of course we will get fresh inflation data today as well. Weve been on this downtrend when it comes to the inflationary story, specifically in the United States. To what extent does that downtrend slow . I think at this point you are going to see a cooling in the headline number. Energy was probably a bigger contributor to the august figures. We will probably see that abate a little bit when it comes to september. Everyone will be paying attention to those core cpi numbers. Honestly, at this point im looking at whats going to be happening with it data to come. You have all of these additional risks you have to factor into when considering price pressures over the next few months. Maybe there are some additional price pressures to worry about but im also thinking about the United Auto Workers strike and how that will affect production output. At this point the take away is that, no matter what the trendline looks like, we will see with this data shows us today. Theres plenty of uncertainties we need to take keep in mind for the months to come. Kriti we will be keeping a close eye on it. It seems like a foregone conclusion. Jill giving us everything we need to know on the inflationary story later today. Thank you for joining the program. The iea oil report is also going to be coming out at about 9 00 a. M. U. K. Time. The conversation quickly went from 100 oil to potentially sub 80. The less people want to be exposed to the market, what does that mean for the demand and supply dynamics . Over here in the u. K. , the bank of englands Credit Conditions survey will be coming out. That is crucial as well as we talk about the Lending Conditions right here is Andrew Bailey deals with a resilient and hot economy here. Then we will get an account of the ecb meeting as well. Seemingly on different pages but it seems like theyre coming back together in terms of the rhetoric and dialogue we are hearing from the key leaders. A full round up of the stories you need to know to get your day going in todays edition of daybreak. Still ahead, a deadlock over the imf meeting in morocco. We will discuss why member nations cannot agree, a lot going on in marrakech, morocco. We have our reporters and anchors on site. Stick with us. This is bloomberg. Kriti welcome back to daybreak europe. We are still watching the middle eastern markets very carefully. I want to bring you some of the updates we are getting out of that region as we start to see the war between israel and hamas start to escalate. A little bit of strength in the israeli shekel but not that much. The dollar against the shekel weaker brought about pointing percent. A quick check on the equity markets as well because we are seeing a little bit of red on the screen. The geopolitical risk is solidified there naturally. The israeli benchmark down about 1. 3 , continuing the drop weve seen for the past couple of sessions. Starting to drop on sympathy, the middle Eastern Region seeing a major exodus of funds as we see a lot of the other parts of the world start to see a defensive trade. So the geopolitical risk very much priced into these markets. I want to see how asian markets are faring as well. Walk us through the asian trade. We are seeing asia stocks running higher for potentially a six session as the regions benchmark msci asiapacific is climbing today investors are focused on less hawkish commentary from Federal Reserve officials. In particular for this part of the world, as chinas Sovereign Wealth Fund is increasing its stake in the nations big banks, that is providing a tailwind for the regional benchmark, talking about the hang seng and the csi 300. To be clear, this increased stake is minor in terms of value for the Sovereign Wealth Fund in the chinese big banks. In terms of significance, it represents chinese authorities desire to help stabilize the markets. If you take a look at how the hang seng is faring, its on a sixday winning streak potentially and there is rising daily Trading Volume that suggest their strength potentially behind the climb in the stock market. We are still a long way from what we saw on the highs of the hang seng in february 2021, about 40 off that, but it leases represents the extreme selling of late is drying up. Kriti suddenly to see the green on the screen in the asian markets in light of this conflict speaks to the reemergence of some risk on sentiment in other parts of the world. Thanks for bringing us that crucial information this morning. I want to stick with that theme of funding and the idea of what is going on over in asia and other markets around the world. Debt relief is a big part of that conversation at the Imf World Bank meetings being held in marrakech, remarkable morocco. Its unlikely to produce in the breakthroughs on how to level the playing field. We are on the ground in marrakech for the ongoing Imf World Bank meetings. On wednesday we heard from a number of finance chiefs, in particular u. S. Treasury secretary janet yellen talking about how she is hopeful for progress in talks with china. She will meet with the china pboc and governor later this week. A number of leaders fielding questions about how the israelhamas war can potentially affect their own economies, potentially affecting oil prices, inflation and the volatile currencies. We will pay close attention to how debt talks are going with a number of countries in the global south, in particular we are paying us attention to zambia in their discussion with the imf. On wednesday we heard about the deal being struck between sri lanka and china on their debt talks, so we will see whether or not there is any more progress on that front. And moving forward, because this is the first Imf World Bank meeting that is happening in africa in 50 years, a lot of attention is being paid to what African Leaders are calling for, in particular reform of some of these Multilateral Development institutions. There has been a lot of discussion around that. We will see whether or not there is any sort of progress on that front on reforming any of these institutions. Kriti jennifer their reporting live from marrakech, we thank you for bringing us that crucial information. Coming up, going from the macro geopolitical story to the corporate story. Before that we will see interviews from the imf in marrakech, with our guest joining the program. You will definitely want to stick with us for that coverage. Coming up, we will go from the geopolitical story to the corporate story. The rebound in american ipos might be shortlived. We will bring you the latest. This is bloomberg. Kriti welcome back to daybreak europe. German center micro birkenstock slid 12. 6 and is trading debut, the worst first a showing for u. S. Listing in over two years. Julia, it fell like after the ipo the gates were opened for a lot of ipos around the world, then birkenstock hits. What did we learn . Theres a few things we can take from this, mainly there was probably a pricing issue with birkenstock specifically. It was priced quite richly compared to some of its peers like nike and lululemon. The fact that it couldnt hold that price and actually felt further throughout the day to close as you said almost down 13 , it was probably priced way too high for these kinds of markets. Except changed a lot in the past month, others have come down from their prices. It shows that theyre still quite a lot of investor caution on valuations so theres quite a lot of pushback. Theres a lot of uncertainty still in the world. We got the conflict in the middle east, u. S. Interest rates probably staying higher for longer and that adds to a much more difficult and business environment. Kriti birkenstock was under pressure but then you had the saudi ipo do significantly better than expected. In 40 seconds, can you explain the divergence between the two . Its actually not better than expected for saudi ipos, its almost expected they will jump 20 . Theres probably a few reasons. Theres a lot of pentup demand in the saudi market, and the middle east has been quite insulated from the turbulence that has affected ipos in other markets. Theres a lot of global liquidity and demand remains strong. It probably also wasnt priced as high as birkenstock was compared to its peers. That made it more attractive to investors. Kriti as we talk about the reemergence of risk sentiment for a lot of these investors, in light of the geopolitical risk we are facing. A crucial update on ipos. She talked specifically about the birkenstock and the saudi ipo but there are plenty of other indications that the markets are kind of messy. How invested do you really want to be . Stick with us, there is plenty more. This is bloomberg. Loving this pay bump in our allowance. Wonder where mom and dad got the extra money . Maybe they won the lottery . Maybe they inherited a fortune . Maybe buried treasure . Maybe it fell off a truck . Maybe they switched to Xfinity Mobile on the most reliable 5g network. For a limited time, buy one line of unlimited, get one free for a year. Now i can buy that electric scooter im starting a Privateequity Fund that specializes in midcap. You do you. 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Golo is real, our customers are real, and our Success Stories are real. Why not give it a try . Kriti good morning, welcome back to daybreak europe. Lets get to the top stories that set your agenda. Secretary of state antin blinken headed to tel aviv as israeli troops amassed near gaza. President biden issues a warning to iran. Israel defense minister balance to wipe myself the face of the earth as signals a major Ground Invasion is imminent. And the latest inflation data from the United States. A lot of crosscurrents, lets get a quick check on how the markets are trading. Green on the screen both in europe and the United States. The ftse 100 futures higher by. 4 . You see green on the screen you think maybe risk sentiment is back. I would argue it is like dipping your toe into the water. The idea that it might be, but these are defensive trades at play. Seeing the nuance about whether this stays. Lets talk about the bond market as well. We are coming off several weeks the bond market volatility as we get fresh cpi inflation in the u. S. Session today. Its kind of flat and unchanged all day but hovering around the 5 level. That will be crucial as we talk about the terminal rate and a lot of fed speakers are talking about pricing in cuts further down the road. All of that will factor into whether king dollar is still king. It simply what youre seeing in the mexican peso, youre seeing strength there but a lot of jitters coming in the emergingmarket space. Thats the cross asset picture. One last check almost asian markets because they are still open and trading. We know it has proven time and again to be the currency intervention level. Three weeks away from the next boj meeting, were seeing green on the screen, similar to the risk on sentiment around the world. Even copper is higher as well by about. 4 . A lot to digest their for the markets. As we get into the six day, were bringing the latest on the israelhamas war. Israel signaling a major ground offensive as Prime Minister Benjamin Netanyahu promises to destroy hamas. The combined death toll climbs to over 2400 people. We are fighting with all our strength on all fronts. We went on the offensive. Every hamas member is a dead man. Hamas is isis and it will be crushed and eliminated just as the world crushed and eliminated isis. This would require that the israeli side to recognize that we exist and we are humans and we have National Rights and aspirations, and these National Rights and aspiration should be fulfilled, and there is global consensus of that. The two state solutions and people to live in peace and harmony as Good Neighbors. Which would require the end of occupation. Kriti bring us the latest from on the ground there. Lets get through the last 12 and 24 hours, a major Political Development has been the unity government that has been announced, presided over a Prime Minister Benjamin Netanyahu, but also bringing in some of the opposition leaders to basically wage this war which the stated goal of is to completely destroy hamas. In the last few hours weve been hearing from the israeli Defense Forces that have been targeting commanders and infrastructure for financing and intelligence of the hamas. We understand that we have 300,000 members of the Israeli Ground forces that are amassing near the border and that comes as these rockets and missiles are brought into gaza. We understand that more than 1200 people have been killed, according to the health authorities, and they have no electricity, food and water are in short supply. Anticipating the next stage of this war, which we dont know when we will enter it, but is anticipated will be a Ground Invasion into gaza which is made extremely complicated by the 2 Million People in civilians living there and the fact that there are still an unknown number of hostages that are still being held by hamas. Kriti we are looking at live images of gaza city as well. Talk about the newly formed urgency government in israel. What are the implications politically . This brings in some different parts of the israeli political sphere, one that has been deeply divided for many months and really many years with the government falling repeatedly. Its presided over by Benjamin Netanyahu. It also includes the former defense minister, all coming together to wage this war, all other government business and bills have been table. This will be the focus for the time ahead. It significant that the opposition comes in because of all this disarray. Before saturday there was huge acrimony within the israeli political system. I was here six months ago and i saw these protest and over 100,000 people taking to the streets of tel aviv, protesting against the netanyahu government. All of that has evaporated and coalesced under the war effort. Kriti thats one piece of the equation as we talk about the politics in the middle east. I want to bring you some sound we are hearing from antony blinken, the u. S. Secretary of state. He is on his way to tel aviv right now. Take a listen to what he had to say. Im going with a very simple intern message on behalf of the president and the american people. That is at the United States has the back of the israeli people. We have the back today, we will have it tomorrow and every day. Kriti he is on his way and its not the only stop hes making. He goes to jordan on friday as well. Give us the take on antony blinken. He is on his way here, we understand he will arrive here maybe in the next hour. It will be message of support, political support, which israel is dependent on from the United States, particularly if they are giving up to wage gearing up to wage a ground war, but also military support. There is a concern that if they do move into gaza that could inflame some of the tensions in the north of the country on the lebanese border with hezbollah where there has already been exchange of fire. They will be stretched on equipment, and replenishing iron dome which has been fielding rockets coming from both directions. Blinken will be here just for the day, he will not spend the night. He then goes to jordan where he will also meet on friday with the Palestinian Authority president. So some diplomacy there as well. Kriti a lot on your docket to cover. How are things in tel aviv . Give us some color on what you are seeing and hearing. As you can imagine, most flights were canceled into israel. I was going from berlin, had to go down to frankfurt, there was still a seat available. There is always heightened security when youre going into israel. They do very intense screening in germany. Of never seen this before, you had a sort of armor and Police Convoy vehicle that was following the plane down the tarmac, even as it took off. And coming down into tel aviv, things were very calm and quiet in tel aviv, most businesses are shut and the streets are very quiet. Six months ago everything was bustling. Also a huge amount of protest on the street, that has all evaporated and a unity has been forming here in israel. Kriti we thank u. S. Always for your reporting. He will be back to give us those regular updates. Tobias bork, Senior Research fellow, lets broaden this picture. We just got the nittygritty from oliver. Talk about the chances of this escalating into a regional conflict. Thanks for having me. We currently have two scenarios ahead of us. Scenario one is that somehow this is contained primarily to gaza and southern israel. Other groups, perhaps some of the factions in the west bank, get involved more actively as well and this could turn into a multifront war. That could then widen ever further because you could see in escalation spiral. Kriti talking about the escalation spiral, which bordering countrys most likely to be entrenched in this . Is it an egyptian story, a syrian story . There is distance between israel and iran. So egypt and syria, walk us through it. The classic point everyone is looking at is lebanon. It is hezbollah. Its a group that similar to hamas, resistance against israel. That is the Group Everyone is looking at. Siri is related to that, there are there is a hezbollah presence in syria as well. We could see something there as well. When it comes to egypt, its a completely different scenario. Egypt has open relations with israel. Egypt shares the only other border with gaza, the only border that is not directly controlled by israel. Theres a question of how do you get any form of humanitarian aid into gaza or how could you get civilians out. Kriti when it comes to getting civilians out, egypt is such a big part of that story. I think weve heard the view from the palestinian side, a lot of mena terrien groups have tried to create a corridor through the gaza strip. Egypt is a big part of that story. What are the odds that egypt is even a way out for people . Egypt is really the only option. Theyre also very reluctant and understandably so. For the last decade or so theyve had to deal with the very difficult security situation in the Sinai Peninsula , where a branch of isis has been fighting insurgency. Also egypt is in a really difficult Economic Situation at the moment. I think thats why we currency a lot of diplomacy going on between the United States and egypt and a lot of focus will be on the security question between egypt and the gulf states. Saudi arabia and others, to look at what could potentially be done to support egypt economically, to deal with what would be quite a significant strain. Kriti talking about egyptian help, in terms of military aid as well, is there that ability from egypt, new look at the egyptian public, there are already reports of aggression toward israelis themselves. How much support might egypt have to get physically involved . Im not suggesting that egypt would get physically involved in a war. We are talking about the question of whether the border with gaza could be opened to a large mena terrien a two leading men attending aid in an civilians out. That might sound very simple on the surface but it is a complex question ultimately. Countries across the middle east , arab countries across the middle east are apparently dealing with exactly this issue of the sentiment amongst populations, very propalestinian of course. Propalestinian for sure. And governments that have relations with the state of israel. That is a difficult political challenge for governments across the region at the moment. Kriti tobias, we have explored the idea of what a regional escalation might look like. Lets argue the opposite, the idea that the conflict stays contained to israel, to southern israel and gaza as well. What are the odds of that . Im not a betting man so im not going to put odds on it. What i can say is that it is certainly in everyones interest. We are on a sort of path where a further significant military escalation in gaza unfortunately seems to be quite inevitable. There are lots of efforts going on at the moment within the region and beyond to contain the world geographically and not allow to spiral. An interesting moment came yesterday was when saudi arabias crown prince had a phone call with the president of iran. Its the first publicized phone call between the two men. They spoke for 45 minutes. This will extend the topic of discussion, how to ensure that this does not turn into a regional war that can somehow be contained. Kriti the idea that you are seeing crosscurrents, there was a phone call between saudi arabia and iran, the first of its kind at that high level. Tobias joining us with some crucial insights about those crosscurrents in the region. Plenty more coverage ahead. Stick with us. This is bloomberg. Kriti welcome back to daybreak europe. Amid the e. U. Investigation into subsidies, countries are racing to offshore cleantech manufacturing in a bid to help them meet their net zero goals. The head of trade and supply chains at bloomberg nef joins us now. Thank you for waking up early for this. We appreciate having you right here on set. Talk about deglobalization, how does that factor into this massive move toward cleantech . To understand a lot of what is being talked about now, the picture of where cleantech is being produced. When we look across solar power, batteries, evs, weve got a massive concentration in china, over 70 of manufacturing capacity is in one place. Policymakers are increasingly concerned about this, especially in north america and europe. They want to derive as much value as they can from that locally. Also the idea of hedging your bets, not having everything in one place. Thats part of what we are seeing with an increase in imports of chinese cvs and this probe from the e. U. And whether a response is required. Kriti there is such a massive move into this around the world. I just moved here from new york and something that has been noticeable is the mood coming out of europe has more momentum than the move towards cleantech in the United States, especially when it talks about bringing up production through offshores. It was true until recently. Europe has always been more ambitious than the u. S. , its been binding in terms of forcing companies to d carbonized within europe. The Inflation Reduction Act was the biggest piece of climate legislation ever passed by the u. S. , not involved a massive amount of subsidies being poured into electric vehicles and a lot of funding going into manufacturing and building factories in the u. S. That something that is very new. The reaction from europe was like, ok, america has caught up in terms of manufacturing locally. Were seeing a lot of investment happen, over 84 billion in new factories being announced for dvds, batteries, and all these bits of supply Chain Technology in the u. S. Kriti emmanuel macron, the french president was very vocal about stepping it up. As the e. U. Been able to match . The e. U. Scramble to respond, saying what the u. S. Is offering is so much more generous it blows out of the water your subsidies. We think we might actually relocate, so the European Commission is going to put in place the net zero industry acts, its not really passed into law but is being legislated at the moment. The difficulty is doing it at the level where funding the subsidies to u. S. Has are not as available are easy to access. Thats something we discussed over the last couple of days at our summit in london. We spoke to some of the difficulties involved in onshore supply chains for Clean Technology in the west. Kriti there is certainly a lot to digest there. Youre clearly all over it. We thank you for joining the program this morning. Plenty more ahead, so much to digest. Stick with us. This is bloomberg. Kriti welcome back to daybreak europe. Lets get to some global stories we are following from around the world. In the United States, Steve Scalise has been nominated to succeed kevin mccarthy. The looming fight over his election wrist delaying the u. S. Response to physical deadlines and the war in the middle east. Goldman sachs has agreed to sell its installment lending unit to a group led by partners of of the bank did not disclose the transaction price but since expects to take a hit to Third Quarter earnings of around . 19 a share. Goldman had earlier said it booked a writedown in the Second Quarter as it prepared to sell the unit. Sticking with goldman sachs, the bank is suing malaysias government in a London International court of arbitration. Complaints over the supposed violation and the imdb payout as well. There will be a lot to digest when you look at what the actual allegations are and how much of a Material Impact it has made. We know that when were talking about goldman sachs, it had been processed into their earnings story, so from an investor standpoint this one is seen as something that was in the Rearview Mirror and already taken care of, but at the moment we will be seeing that countersuit. We will bring you all the updates on that legal process. One of the worlds biggest providers of 5g Network Equipment will take a 3 billiondollar hit, in light of their move with bondage. The massive swedish tele giant has been consolidating to some extent but now theyre saying the charge could have a real material effect on earnings. The stock has been under pressure. Coming up at the top of the hour you have those ecf earnings. Stick with us. This is bloomberg. After i lost my mom, i lost my way. Then i found youth advocate programs, yap Behavioral Health services. As a little kid, i made some mistakes, but im not a mistake. 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