Kriti good morning and welcome to daybreak europe. Im kriti gupta in london. U. S. Core cpi rose in august for the First Time Since february thanks to gasoline prices leaving the door open for even more hawkish Federal Reserve. Plus, it is decision day. Will the ecb hike or hold . Traders are betting on a 25 basis rate point hike amid sticky inflation worries. The nasdaq debut. It is the biggest listing of 2023. U. K. Based arm is set to start trading today, priced at 51 a share. What does that do to the macro . It is not the arm story driving it but it goes back to the ecb. It is a narrative when you look at futures trading. You are starting susie green to see green on the screen is silly for euro stoxx futures. You are talking about a hawkish ecb in theory and the stock market in europe should take a little bit of a hit. That is not what is being priced in right now. The question is if we see the 25 basis point hike again, one hike to for that some might argue. Does that mean it is priced to the equity market . Ftse 100 futures not far behind, taking a cue from the Global Sentiment picture. Outperformer will be the tech story and it comes back to the arm ipo. The pricing will get in the u. S. Session today and the ideal that the outperformer globally remains in nasdaq 100 futures. That will be soon of some equity markets. Dont forget about the bond market. What ecb does today will have a real fact on the bond market story somebody because we are looking at 10 year yields that is already down two basis points. Youre seeing a bit into that look at the fund end of the curve and not saying that much action. The eurodollar has positivity coming off what has been priced off of the ecb. A quick check on the dollaryen because we need to look at the technical level. 1. 47 147, how much weaker can the japanese yen get . That will be paring back the weakest that we have seen but the boj completely in focus. Brent crude a big part of that story. How much is currency weakness impacting oil story in the readthrough it has on the japanese economy . 92 a barrel on brent crude. Lets see how the asian markets are faring. Avril hong joins us with an update from singapore. Walk us through it. Avril good morning, kriti. We saw the asia stocks rising at the start of the session. There was optimism, cautious albeit, given u. S. Cpi numbers coming in line with expectations and raising bets we could see the Federal Reserve pause on interestrate hikes. We have a slightly softer dollar boosting Risk Appetite in the region. We are seeing outliers. Soften group for one even though it is pairing losses of 2. 2 earlier in the session after arm priced its ipo at the top end of the reach. The chinese benchmarks are coming under pressure today given the lingering concerns about the real estate sector. Lets take a look at how they are faring. The front and center is a chinese Property DeveloperCountry Garden. There is a deadline approaching later today for young bondholders to vote kriti on the companys request kriti for a repayment extension. We can see how the property gauges and hong kong of the chinese Property Developers is lighting as well. A wrong and singapore with a crucial market update. We are joined by Valerie Tytel, maria tadeo and frankfurt lets start with the cpi story valerie. We did get some headline numbers and core numbers that divert as we expected but it did come back to the oil prices. Valerie, walk us through what we got. Valerie for the headline, much of the story around three acceleration and gas prices in the u. S. Causing uptick in the headline number, but a lot of the markets attention was on the core number. We saw them monthtomonth print for the month of august tick up just very slightly to 0. 3 . The market was hoping to get another 0. 2 . However, it did very little to change the narrative on the fed. We are still pricing in a 50 chance of a hike come november. So, the market is very much expect in the fed next week does keep optionality on the table for whether they do hike again come the fall. The attention is very quickly now shifted to what we could see in a summary of economic projections. We know they are very likely to hold the rates but what will they try to signal on the path ahead . Will they use the dot plot to try to signal that higher for longer is really here . With a shipped the 2024 dots up substantially or could jay powell some more dovish and talk about that chemical risks on the horizon and need to proceed cautiously and maybe not shift the dots higher as the market maybe is a bit worried about those. Those of the risks on the horizon for the fed as a tension very quickly after this dud of a cpi print turned the next wednesday. Kriti this brings us to the ecb, a similar dilma. What is a Market Pricing in the ecb . Valerie it is a very close one. Economists are very split in the market is tilted towards a hike, pricing 70 chance of a hike at todays meeting. It is going to be an interesting one for the ecb, thats for sure. This is not the first time they have had is leak on the eve of a pivotal meaning like meeting like today. We are still worried about the ecb may be going one hike too far and possibly labeling this hike in the future when it goes down in history as being the trichet mistake. That is the concern on the market. Kriti Valerie Tytel walking us through that. Lets stick with a theme of the ecb because it will be the market mover of the day. Lets go to maria tadeo and frankfurt standing by outside the ecb there. Is it a hike or a hold . Maria well, it is a tight call, thats for sure. As valerie said, there is has been a real poster for weeks a roller coaster for weeks. Sentiment living on a daily basis. We start on a hike, move to a hold, and now back to hike. When we look at the Bloomberg Survey which collects all the calls, they still believe this is a 5050 decision when you look at the Market Pricing, that is a defense story. They are betting the most like the outcome is the European Central bank and Christine Lagarde will again hike Interest Rates the 10th consecutive time. The context is important and this precipitated by the report confirm i bloomberg that the new economic projections, it is not just a Monetary Policy predict of the projections is at the ecb will see inflation above 2 next year and 2024. That is a crucial year when it comes to the transmission come up with inflation about 3 next year. That is a perfect platform for the hawks to push for another hike today. As we say, nothing is official until she makes it official. Kriti one of the criticisms of the hawks that might want to percent forward is do you see a repeat of a jeanclaude trichet type of moment . Talk to us about the odds of a policy error here. Maria jeanclaude trichet, that ghost of the policy area created the conversation and this building permeated the conversation in this area of the building. They have face criticism that they hiked late and missed a window and a find themselves in a tricky situation when it comes to the Economic Outlook because going back to the Economic Forecast if you believe the reports that have come out with the past 48 hours, you would see inflation is still sticky in 2024 also potentially a downgrade to growth. The european already cut their growth for this year and next already in their productions. You have a central bank that is essentially hiking into an economic downturn from a nightmare scenario for any central bank. The idea of whatever happens today will be a Communications Exercise for Christine Lagarde to really frame this decision Going Forward also avoid the shade of a policy error from the European Central bank at a time in which the european economy is clearly now we look at indicators, heading into a downturn. That is palpable. Kriti surly something will be watching closely. Maria tadeo standing by outside the ecb and frank are scared another top story in frankfurt scared another top story is among mental ipo later today in the u. S. Session. The arm ipo is 51 a share. Softbank backed as well. Joining us now is bloombergs min jeong lee from tokyo. Lets start with the macro. What can softbank get from this and what is softbank takeaway . Min softbank does still own about 90 of arm, so a lot of it depends on how arm trades in the u. S. By doing things like you mention. Based on the pricing of 51 which is a top end of the range, and apparently has been oversubscribed by more than 10 times, so based on these two factors, we can kind of anticipate that arm will trade modestly well when it starts trading. Of course, barring any negative surprises from other market including what happens at the ecb. But if it does perform very well, it means a lot of cash for softbank and for the 90 of arm stake that softbank continues to own, it could mean more valuation, more money for softbank down the road. Of course, it all depends on what happens to the actual arm performance when it starts trading. Kriti that is what is so striking about this, some leave the idea that the valuation was supposed to be significantly larger. We are seeing over 6 right now. What happened with the arm valuation . Min right, it kind of depends on where you are coming from. You are right, initially softbank was looking at evaluation range of a valuation range of 60 billion to 70 billion. 55 million valuation might not seem good enough, but a lot of people have been cautioning that there are many different factors at play, including the uncertainty around chinas business and the slowing Smartphone Market where a lot of arms revenue comes from. A lot of investors have been factoring in those risks. From that perspective, 55 billion, live people are saying still is a decent valuation. But of course, we will have to see really what happens when arm starts trading in the u. S. For all of these investors to see, better judge what is happening. For today, softbank shares are showing a muted reaction. So i do think 11 investors are kind of holding their breath to see what happens to arm shares when it starts trading. Kriti it enjoys something we are holding our breath for. Bloombergs min jeong lee joining us from tokyo. We have the ecb, cpi and the arm story. There other things we should watch today. The ecb Rate Decision and 1 15 p. M. U. K. Time. As is the moment of a policy area policy error or moment for this revokes . For the history books. That is something to watch closely. In the u. S. , a massive data dump of retail sales, ppi, and jobless claims. We are going to see inflation of his continue to drop on the headline level but do we still see a resilient consumer . Retail Sales Numbers we crucial for that narrative. Arm will begin trading after listing in the u. S. At 1 30 p. M. U. K. Time. We will have live coverage on Bloomberg Television and radio. It is an ipo you do not want to miss, perhaps the biggest of 2023. You can get a roundup of the stories you need to know to get your date going in todays edition of daybreak. Just type in dayb on your bloomberg terminal. Some banking news all wrapped up in daybreak terminal. Coming up, we are expanding on that. Citi Ceo Jane Fraser watching the biggest restructuring of the wall street giant in two decades. We will bring you the details. The biggest ipo coming up later and we discussed arms listing with that unicredit head of Capital Markets. Silvia viviano joins a program. This is bloomberg. Kriti welcome back to bloomberg daybreak europe. Im kriti gupta sin london. We are getting headlines ray dalio speaking at the milken conference in singapore, the summit and making a contrarian investment call. The bridgewater founder says he does not want to own debt or bonds turns out. He is saying cash is a good investment right now. This is significant because as we talk about the Federal Reserve and other Central Banks around the world pulling back on the Monetary Policy and hawkish narrative, in theory within Interest Rates would down and bonds would be a good bet. The idea that bond bulls would be back in charge after years of them losing over and over again. That seems to be perhaps not the case. Ray dalios simile saying it is still better to stay on the sidelines rather than hop into the bond market. If we get more information will bring you those details. Youre looking at live images from that asia summit. Lets go to banking news. Citigroup is planning a wave of job cuts. The Ceo Jane Fraser launches the biggest restructuring in two decades. For more, lets get to bloombergs lizzy burden who has a story. Lets start with the changes that are occurring. Lizzy jane frasers are structuring the entire bank and management layers. This has been going on for a while and she has been exiting businesses around the world but specifically here, citi is scrapping is two longtime core operating units. One is focused on is additional clients and the other house affirms consumer offerings. Instead they are going to be five Main Operating units all run by men. They will report directly to her. Jane fraser noses will be a comfortable and knows it will be unpopular but she is fine with that. Analysts warn it could risk undesired departures but she says the reason it is necessary is because she wants to be able to hold these managers more accountable, which is important to improve citigroups return. The stock price has lagged its peers for years and has been down roughly 40 since he took over in early 2021 and that is roughly double the decline of any major u. S. Rival in that same period. Kriti you mentioned the stock performance. The idea that if you look at a chart and i will help you visualize is, if you look at a chart of all the major banks around the world and look at their pricetobook ratio, citi lacks legs because of the stock performance. Other banks are thought of as overvalued by that symmetric. It speaks to the idea that maybe city is more treatable but perhaps not writing as much on Interest Rate story. What does that mean for jobs . Lizzy the headcount swelled recently, 240,000 jobs. It has especially been in the back office, hr, tech, operations, finance. That is where it looks like the job cuts are mainly going to come. You are likely to see it because those jobs are tied to certain regions or the former as juvenile Clients Group or the personal Banking Wealth management division. As the cfo put it, if those divisions go away, the work goes away and impersonally, the staff have to go away to. What we know so far just be the tip of the iceberg. Kriti that is a citi story. News overnight from goldman in a changing of the guard there. Lizzy you are seeing the Transaction Banking chief has been fired and it is over complains lapses over unauthorized communication channels. We know that goldman is sensitive to this because it was one of several banks that regulators slept with to an among dollar fines apiece for this last year. It speaks to a broader trend. We saw the ceo of bp Bernard Looney stepping down this week over his undisclosed relations with colleagues. And therefore, this is part of a trend of multinational corporations adopting their eyes and cross energies in this post dotting their i and crossing their ts. Kriti lets go to real estate. Ubs told staff it plans to house its Investment Banking operations at credit suisses new york offices as it continues to integrate its form arrival, the unit which includes the firms Market Division will be located at 11 madison ave in new yorks flatiron district. Really nice area i must say. Asset measurement staff will remain at the existing ubs office in midtown new york. It was my first apartment, also a nice area. U. S. Passenger airline shares sink by the most since july after American Airlines and discount carriers warned that higher costs are hurting their bottom lines. American airlines is the recorder earnings outlook on a jump thirdquarter earnings outlook retroactive salary under new contract for pilots. Discount carriers raise red flags about waning demand for domestic air travel. Over to union stories. The president of the united are workers june United Auto Workers union says carmakers are falling apart the new labor contract. Threatening straight action strike action and work stoppage could be avoided with the two sites are approaching a deadline thursday. As collation to include stoppages at the big detroit three, ford, gm and stellantis would make it the first of its kind. Tech news. Google reported to come cut back on roles in recruiting adding to layoffs the tech sector. It told market watch it continues to invest in top engineering and technical talents, but is meaningfully slowing the pace of overall hiring. The cuts are excited to impact a few hundred members of the companys recruiting team. The big comment of the day over on d. C. Elon musk has called for a regulatory structure for Artificial Intelligence after warning u. S. Senators about risks to civilization as a whole. Billionaire owner of x formerly known as twitter and the founder of tesla as well was among more than 20 tech and Civil Society leaders attending a closeddoor summit yesterday focused on ai. Coming up on the program, we bring you the geopolitics. North Koreas Kim Jongun russian president len root putin will talks. Vladimir putin hold talks. That is next. This is bloomberg. Our relationship with the banks is as strong as it had ever been. Theres so much more to do together and every month we are finding more ways to Work Together to take a stickier capital base and long iteration capital base with origination capabilities that span multiple decades at the banks and matched them with our capabilities. I really think it is still the early innings and we are working much better together. Kriti Apollo GlobalManagement Deputy cio john zito on the buyout and the relationship with banks particularly when it comes to private credit deals. Lets get to top stories from around the world. North korean state media says kim jongun and russian president len root putin have reached Vladimir Putin have reached the agreement. They met for the first time in four years at a space center in russias far east region. Have failed to deploy satellite and some analysts are thinking kim may be looking for help on the tech front and return for supplying arms to russia. In north africa, roughly 8000 people are reported to have died and many more injured or suspected missing in disasters that have struck morocco and libya. The Libyan Military says flooding due to storm destroyed most half of the town. The earthquake morocco killed 3000 with more injured. Rocco is excepting aid from spain, the u. K. , tar in the uae while rejecting qatar and the uae while rejecting offers from the United States and france. Lets get a check on the markets because we are seeing action in anticipation perhaps ahead of the ecb. The euro stoxx futures are higher by 0. 3 . This is a little bit counterintuitive because if youre expecting an of the rate hike which is what is being priced in the swaps right now, you would expect the stock market to be the first two take hits. That is not is happening. We are seeing green on the screen across atlantic, specifically the u. S. Perhaps anticipation around the arm ipo its creating a broader bid into the tech sphere and i will have a Ripple Effect on the sentiment story. Lets go cross asset. The 10 year yield seeing a bid down to basis points lower. The eurodollar is 1. 08. Brent crude 92 a barrel, getting closer and closer to 100. The ecbs policy dilemma coming up. We will dive into what this means and what we can expect. Stick with us. This is bloomberg. aidyl hi, im aidyl, and i lost 90 pounds on golo. I struggled with weight loss and weight gain my entire life. With all the yoyo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. In one year, ive lost five sizes, and im on my way to lose another three. With golo, i can do it. announcer change your life at golo. Com. Thats golo. Com. When you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. We have been able to reach over 100 Million People impacted and affected, and at risk of hiv. The rocket fund takes all of the work that were doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. The idea that we have saved five Million Peoples lives, its overwhelming. Its everything. Welcome to daybreak europe. U. S. Core cpi raises in august for the First Time Since february leading the door open for a hawkish Federal Reserve. And it is decision day. Will the ecb hike or hold . Traders betting on a 25 basis point rate rise as sticky inflation worries continue to swirl. Plus a nasdaq debut, the biggest listing of 2023. Chipmaker arm set to start trading today priced at 51 per share. Massive moves, the arm story driving markets. It is a tugofwar in terms of the narrative between the ecb and the tech story. That is why you are seeing green on the screen. Euro stoxx futures leading the gains in europe. S p futures not far behind. The real global outperformer, nasdaq 100 futures higher by 5 10 of 1 . That is the future story. Lets go across asset to talk about what we are going to see from the brent crude. And the european dollar story. Eurodollar 108 at the moment. A lot of this is going to come down to what you hear from the ecb. Is that a hawkish moment . Are they going to go too far . Is it interpreted as going too far if they do that . Im circling back to brent crude because we are inching closer to the 100 level. I think that is going to be a worry for a lot of people when it comes to inflation data. That is the process that is the cross as that picture. Lets get a look at how markets are faring. We see asiapacific stocks hanging onto those earlier gains. The msci asiapacific looks set to snap its two session losing streak. A lot of the optimism is coming from the u. S. Cpi numbers. Traders are raising their bets we could see a Federal Reserve pause on rate hikes. After those Inflation Numbers came in more or less in line with expectations. We are seeing a slightly softer dollar boosting Risk Appetite. There are some outliers. Softbank for one is pairing losses of 2. 2 earlier after arm priced its ipo. The chinese gauges are also coming under pressure. Lets look at how they are faring after coming back from the lunch break. We saw the hang seng underwater for much of the session. The csi 300 as well. They are flipping into positive territory. That being said they are continued lingering concerns about the property sector. Case in point with Country Garden there is a deadline approaching for yen bondholders to vote on the companys requests for an extension for the repayment. Kriti thats going to be part of the asia story. The other piece in focus, the sale of japans twentyyear bonds. What are we seeing on that front . To set the scene, we have the comments from governor ueda that sparked speculation we could see a bank of japan that is taking steps towards normalizing Monetary Policy. That sent jitters through the bond markets. We had concerns we would see weak demand for the auction of the 20 year japan bonds. But that is not the case. We saw stronger demand so that is being reflected in the u. S. Jgb futures. There appears to be soothing of those concerns in the bond market. Kriti certainly something we are watching closely. Avril hong, we thank you for joining us. We go from singapore to frankfurt. It is a knife edge decision day from the ecb. Economists split on whether they will raise Interest Rates for a 10th time or pause. Maria tadeo at the scene at the Central Bank Headquarters in frankfurt. Is that a hike or a hold . Are we leaning one way or the other . Maria the suspense at this point just hours from this decision today from the European Central bank. We have spotted Christine Lagarde on her way in. I believe that 7 15. Shes already hard at work. This is a two day deliberation. When it comes to the meeting, what is clear as we have seen Market Sentiment almost flipping on a weekly basis. But obviously there has been a very palpable change in tone when it comes to money markets and what they price in. They now see a rate hike from the European Central bank. A lot of that precipitated by that report from reuters which also bloomberg was able to confirm about the print when it comes to cpi potentially above 3 next year. That was seen as a determining factor when it comes to the strength of the transmission policy of the European Central bank above 3 next year that would still give a platform to the hawks that believe there is still a rate hike warranted. This is a tough call for the European Central bank. Whatever happens. This is a tough Communications Exercise from the head of the European Central bank. We are ending now at a point at which whether you believe they hold are they hike today, this is a central bank facing a bleak economic picture. Kriti inflation or recession is the constant tugofwar the central bankers have to face. Talk to us beyond the Monetary Policy decision. Talking about the outlook, what are the odds they can avoid a policy error . Talk to us about the history, the timeline, perhaps the ghosts in the past of the ecb . Maria it is complicated and as you know the idea of stagflation, this is a word they dont want to mention, let alone a policy error. On the show this week we had the head of Economic Affairs for the European Commission. Trying to spin this line that it is too early to say there is stagflation. The projections today from the ecb will matter when it comes to setting the scene. Back to that report that came out from both reuters and bloomberg, you could be a central bank that says inflation sticky going into next year but also could cut their growth projections. The European Commission did that for this year and next. Essentially eluding to the policy era. The tension is in the market. The ghost of a policy error from the European Central bank is that you could have an ecb hiking into an economic downturn. That is a scenario they wanted to avoid. It feeds into the criticism we have heard for months about the central bank. They went in too late, missed a window, and found tight policy at a time at which the downturn in the european economy look at any indication, it is palpable. Kriti i do not think you could pay me to be a central banker right now. We thank you as always for breaking the story. Lets go from the eu to perhaps a little bit broader, the global story. Theres a headline that is very significant. Simply that china is urging the eu to create a fair environment for the ev industry. They are watching the regulation coming out of the eu more and more closely. China has about 8 share of the 27 nation blocs car market that could double by 2025. What does that do to the Competitive Landscape . That is the concern. You are already seeing chinese response. Bloombergs oliver crook joins us from berlin. Theres a lot to digest here. The eu on the defensive. Walk us through how the investigation, the tariffs the eu may impose how does it all work . I spend a lot of time on the phone with a trade lawyer looking at what do these things actually look like . First of all the eu only brings these sorts of investigations if they are relatively confident there is something to find. They need to feel secure with that. The next couple weeks we will get the full detailed journal of what this investigation will include and what they will do is pick three to five companies that operate within china. Not all chinese but across companies to determine how much state aid they have received and from there they will determine proportionally how much duty to apply potentially on the cars coming over from china. That could be 5, 10, 15. We are looking at something closer to 27 . From the speech itself i should mention we also heard nothing about the Inflation Reduction Act and the impact that could have and also recall the eu has loosened its own natural state aid rule. Could there be a tariff war this precipitates . That is the other question. Kriti what does that do in terms of supply here . If we are talking about these regulatory restrictions, when it comes to flooding the u. K. Market or these emerging markets with chinese evs, how quickly could that manifest . Oliver the heart of the question from the munich auto show last week, i spoke to a lot of the chinese ev makers who are introducing their cars for the first time to the international market. What is interesting is a lot of these carmakers have come to europe with cars at a higher price point than they charge in china. In part because the european consumer is willing to pay for it but in part because they were conscious of not trying to flood the market with cheap cars and sending a very poor political signal. Kind of split here in europe where the germans have been more quiet on this and the french more outspoken. Still lantus ceo has complained about the chinese potentially flooding the market ed not receiving the same treatment over in china but really overall the Chinese Companies thought they would have a much warmer welcome in europe which is maybe not what the bdl is saying to them. Kriti a lot to digest especially for carmakers with a strike potentially on the horizon. We thank you for joining us this morning. Lets get to another major story sticking with that china theme. The white house says it believes chinas moves expand a government ban on iphones is an attempt to retaliate against the United States. John kirby called the ban aggressive and inappropriate. Beijing pushed back on reports about the restriction saying it had, quote, not issued laws and regulations to ban the purchase of apple or foreign brands. Thats going to deal with a lot in terms of the market supply for apple. Analysts will say chinese were not a major buyer of apple iphone so when it comes to the bottom line maybe not a hit. What does it mean in terms of the Regulatory Infrastructure for other tech companies, especially American Tech Companies that have a presence in asia . That is something we will monitor. Lets look at events we are following. A jampacked day with lots of market moving events starting at 1 15 u. K. Time. We are going to have the ecb Rate Decision followed by a News Conference by president Christine Lagarde. Bloomberg economics forecasting the central bank will push through a 25 basis point hike for the final time in this cycle. Bringing the deposit rate to 4 . History in the making. It is a decision you do not want to miss. At 1 30 u. K. Time a slew of economic data. U. S. Retail sales and ppi data as well as jobless climbs on the docket jobless claims on the docket. And the blockbuster ipo of the year. Arm has set the price at 50 per share. Trading kicks off. We are going to bring you more on that story and preview the biggest ipo, everything you need to know on arm. This is bloomberg. Kriti welcome back. This is daybreak europe. Softbank backed arm is set to debut on the nasdaq, raising almost 4. 9 billion in this years biggest ipo. Bloomberg reported the initial Public Offering was oversubscribed by more than 10 times with investor interest exceeding supply at the offered price range of worry seven dollars to 51 per share. Joining us now, unicredits head of Equity Capital markets. A pleasure to have you join us. Lets start with the ipo and broaden out. Whats fascinating to me is how quickly the valuation dropped. This was supposed to be a 60 billion to 70 billion valuation. To bring it down to 5 billion, your thoughts . Sylvia thank you for having me. I do not see this as a less valuation. The syndicate of the banks and softbank decided to play it safe. The valuation is still compelling if you look at their main peers. It is well below what softbank paid vision funds not a long time ago. Considering the fact they are only selling 10 this is the right approach to ensure this is becoming one of the first and biggest Capital Markets globally. Kriti this is something bankers do often. They price low to make sure it is oversubscribed by 10 or 15 times. My concern broadly is why only 10 . Do you see this as step 12 broader issuance . Step one to broader issuance . Silvia yes. You can see the key steps. There is more free float. Many economists are investors. The reality is to take the Company Public and then to take advantage to show for the growth , for investors, in the coming months, the longterm. Kriti it all makes sense on the surface but here is the risk. We have seen it time and time again with every tech ipo. Doordash, airbnb, etc. You see an initial surge, questions why the pricing was so low, then slowly in the months and arguably years that follow, a massive pullback when it comes to the pricing. Is the strategy potentially going to backfire given that the fundamentals of the broader macroeconomic environment and the chip industry are not working in arms favor right now . Silvia the major concern if you talk to investors was, what about future growth . Where is the growth coming from . I think what softbank and the company is trying to say is we believe in growth. We see there is something that is not only telephones, but growth coming from ai. I do not see theres going to be a massive blowout in the stock price. I think it will land in positive territory. The reality is, this is my personal interpretation and view , this will set the scene for a positive aftermarket. This will create buzz in the market. The next Year End Results demonstrate the business is going strong and this is creating the path for successful growth over the next months and years. So i am more positive. This is a more Mature Company. To demonstrate to the market the growth they have different avenues of growth. I do not think this is going to be the usual tech blowout in the aftermarket. Kriti it makes sense simply because if you look from a fundamental standpoint arm is basically the only Graphic Designer of chips that exists in the entire world. The closest competitor is in china and it is not even close in terms of size. Lets talk about the broader ipo market. It is good to see them come back into style after the 2022 freeze we saw in dealmaking. Why now . Why come to an ipo market now . Silvia lets look at the arm ipo. The company was ready to come to the market and it was decided the volatility was too much and so they waited till the after summit. From a company perspective, a market perspective, there were all the ingredients to be sure this was good timing to launch. You need to start from somewhere. Blockbuster ipo, the arm ipo, is the only one to test the market right now. The reality is the backlog of ipos after a very quiet 2022 is important. I think this is just the first start for companies that wanted to come public because of funding needs, but 2024, in my view, will be the year for europe and the u. S. We just need to ensure the ipos that are coming now are going to do with the proper way and the market is going to sustain. And the appetite is there. The ipo window is open again. Kriti silvia, you are the head of Equity Capital markets at unicredit. Why should a company talk about equity issuance one perhaps there is a little bit more of bullish thought right now in terms of treasuries and the broader bond market . Why not issue debt instead . Silvia every company has a specific story. You need to look at leverage. You need to look at outmatched actually how much actually cash they need. There are many factors to keep in mind. And you need to remember. Right now the backlog is private equity that needs to exit. The ipo very often for a Mature Company with a leveraged profile that is fully mature is the best route. There are many tech companies, unicorn companies, that have been testing the market until now. Raising capital in the private markets. Before they can actually come to the bond market is to come to the ipo. I think every company has to be considered an value. The ipo is always a valuable option for many situations and many types of companies. Kriti 2024, the year of ipos. We think he was always for that hot take. We thank you as always for that hot take. Coming up, why theresa may believes her brexit deal is better than the one eventually agreed upon with brussels. Our interview with the former u. K. Prime minister next. This is bloomberg. I am on record as saying ideal was better than the deal that was concluded. But i could not get my deal through the house of commons so somebody else had to have a go. They said you were maybe not as excited as others. Boris johnson proved to be very excited, maybe two exciting. It is one of the things i took from my childhood. My father was a clergyman. I was brought up in the country vicarage in oxfordshire in the u. K. In that time i learned i was not just myself. I was representing in a sense people saw my behavior and saw my father through it and the church. It is similar in politics. You are not just there as the individual. You are there as a representative of your party, your government, and International Affairs of your country. I have always taken the view that one must be careful in the approach that i took to what i said and how i approached issues. Some people said that was not very exciting. Does your style and the way you do business at the end was it vindicated . It is a different way of doing business. I think it could work to get results that i thought were good. Others had a different style and came out with slightly different result. What we will see in the future of course is as the country moves on, how the country deals with the situations. What is important now is to move on. Kriti former u. K. Prime minister theresa may telling bloomberg her brexit deal would have been better for the u. K. Than the one struck by boris johnson. Catch the full interview at 9 30 am u. K. Time on Bloomberg Television. A quick check on the markets, you are starting to see commodities in the green. There is concern about what those lng strikes in australia would have a readthrough. Plus it is ecb day. A lot of green on the screen, all subject to stay with us, this is bloomberg