Producer prices. Those numbers are crossing hotter than anticipated. 3 is what we expected. 6 is what they came in. Another pattern that inflation could still be sticky. In terms what have we have with the benchmark, the stoxx 600 is weaker at this stage as we get going today. Lets look at the different sectors as well to see how we are traveling. Technology at the bottom nasdaq was weaker in session yesterday. Pointing out the big a. I. Stocks, nvidia and microsoft, going in different direction. Microsoft with support and nvidia is the weakest link. Technology is down. 40 . Montcler and dior as well. We have retreat for retail names, but down less than. 10 . Red cropping up in financials. Insurance names pushing higher. Admiral at the top. Bnps is up 2 leading that banking basket. Food and drink in the green. Autos with volkswagen at the top of the basket. Utilities up. 40 . Oil and gas support. 50 . Telco on the back of vodafone after the sale of the italian asset is 6 higher. Lets look at what that is doing for the indices. 7,743 on the ftse 100. We are flat at this stage. We had a decent trading week. It looked better at the Halfway Point up 1. 5 . You can see, we are holding that threshold. It has been a decent trading week with stocks on the index level. We have seen a slippage on the dax below the 18,000 point level. Still a decent trading week. Across to the markets, we would have a flat to weaker start, but we are seeing a bit of improvement to the upside on the ibex by. 10 . Smi is. 20 firmer at this point. Lets see if we can get clues on the vonovia trade. The record net loss of 6. 76 billion euro. The collapse of valuation is the worst we have ever seen. Germanys largest land owner valued the apartments being slashed 6. 6 in the year. There is some signs of stabilization, but warned it is not a profit. Lets look at vodafone and what it is doing to the stock which is still up 4 . Swiss com is moving, too. The swiss com board supports the vodafone purchase in a deal worth 8 billion euro. It received the backing of the swiss government. Vodafone will return 4 billion euro of capital to shareholders following the sale. We have hellofresh with decent declines over the last year. Declines which have continued on in the latest trading pattern. What you see today is a move to the upside. Hellofresh will report the figure which has been falling consecutively year on year since the end of 2022. Shares plunged 50 last week as they scrapped the outlook. Lets get to the head of economics and cross asset strategy at kepler. To walk us through the markets at this stage with the latest trade with the french stocks and german stocks over the trading week. Are you turning cautious at this stage . Good morning. Thank for having me. The sentiment, i think, is divided if you look at professional investors on the one hand and Retail Investors on the other. I think Retail Investors, you know, are still i would say buying this Technology Company like there is no tomorrow. On the other hand, professional investors are more cautious overall. They are not super excited about the economy cycle. We are not talking recession anymore, but it will be difficult for the u. S. Economy to defy gravity after a few strong years. Earnings remain also, i would say, support in terms of momentum if you exclude big tech. Big tech has done great. It is difficult for people to get too excited from the professional investors and pon the other hand you have people super excited of a. I. And not afraid of the valuations on nvidia. Arnaud, can i dive into the european calls here with the sector . You have a preference for software and services over semi kconduct ers. Does that mean it will not play in the story in the genuine pattern . Where is the super computer a. I. Like model we have seen with cloud . A lot of the big u. S. Companies are going one that path offering a. I. As a service or model to some of the customers. There are Different Reasons and views with software over semiconductors. I think the first reason is because the market had been playing very aggressively that the stock cycle had been anticipating for the year that we will eventually get into the restocking cycle. We failed so far to materialize. With we we are close to the bottom and we are improving with semis remaining excessive. It is still early days. Stocks have done well on the back of that. Then came a. I. And chatgpt and the cloud and everything you mentioned with infrastructure. This pushed the stock valuation further from most of the sector and nvidia being the leader of that. So now what i find interesting is a lot of people are defending the bull market on semis. They say look at the valuation. It is not that expensiexpensive. Nvidia may not be that expens expensive, but it is high valuation on high profitability. How do they make margins higher than what they are making now and what happens in the feud fo future as competitors come up with products. And you see the French Company mistral with much less data. We see some improvement from that side. I would say some caution there. Lastly is geopolitics. It is in the middle of the discussions with software is absent of that. European or u. S. Software companies are mostly sitting everywhere else but china. They are immune to those discussions. Arnaud, let me jump in here and change tactics slightly. Interesting strategy in the world where the Central Banks are seeing more robust data on inflation. The underweight fixed income, but overweight credit. There is so much to breakdown. Are you concerned that actually you are not getting the bull bang for your buck foryour position . By any measure, credit spreads have tightened a lot. Now you are right. Owning credit is becoming very similar to owning pure fixed income. You know, we have been seeing pretty well, i would say, the fact that markets were overly bullish on rate cuts. We had come into, i would say, smaller duration to play this ris risk. Now the markets are more reasonable about rate cuts. It is time to turn and look to longer duration and government bonds. That is where we would go from here. Equities. You have it underweight. It is easy to construct that argument when you consider how far and fast equities have gone from valuation and momentum as well. The only problem i would suggest, arnaud, the data is solid, especially out of the United States in terms of the earnings figure. We are not seeing the earnings recession and not really seeing the earnings slowdown. Does that give you pause for thought in underweight in equities . Its been a challenging period for sure for being un underweight equities. The flip side is when you are underweight equities, you are underweight u. S. The counterpart in the u. S. Has been to have a more constructive stance on europe and emerging markets. That has done relatively well. I think theres a world out of the u. S. To come back to earnings, there is a debate here because you read excitement how earnings season was in q4. It wasnt good in europe at all. Thats the first part. In the u. S. , you see that out of the magnificent seven, the year on year trend of earnings is down 1 actually. Earnings down 1 in the u. S. Excluding magnificent seven. Thats not as if we had a huge growth surprise in the u. S. Gdp growth and huge inflation still. What happens when the inflation keeps normalizing which is our view . That means it will keep normalizing and you see the auto secondhand prices are coming down fast as an indicator that things are cooling as well. Hard to defend the earnings momentum and valuiations. Can i ask about real estate . What we have seen from vonovia tells us there are problems in the german real estate market. You have an overweight on real estate. Are you feeling that is a good idea given the news from germany today . Definitely. I think that is what we just said about long duriation on bod yields going down. This is the support for the real estate sector. Now on vonovia what i find interesting is that the wording of the ceo of the price correction is credit, very excessive in my view because we had 10 to 15 decline this house prices in germany which is not the end of the world. Interestingly, we had a huge supply this europe overall on housing, residential housing, before this Interest Rate cycle started. Now that weve had about two years of very, very low new build, you can say the housing shortage will get worse, not better. So, unfortunately for people, housing is still going to be expensive and thats very supportive for companies such and vonovia in that space. Asset value is unlikely to decline very much from here. Arnaud, thank you very much. We will take you to brunello cucinelli. The group confirmed the sales growth target of 10 for the year saying it has seen encouraging results so far. The stock is down 5. 7 . This symbolizes the luxury element we are seeing now and that trend. You can see after what has been a decent trading pattern for the past year, up 44 . The stock is retreating today. Fr we have this stock with salzgitter with the full year sales down 14 year on year. It cited deteriorating market conditions. The ceo has told cnbc he is cautious on growth. If you look at 2023, we have seen a robust result with the market indications in the second half of the year. We have started relatively weak into 2024. However, we see a good possibility for salzgitter with the ability to perform as in 2023 in a Challenging Market environment. Coming up on the show, the Qatar Airline show reaffirms his faith in boeing. We will have dans exclusive interview coming up next. Hi, im kim, and i lost 67 pounds on golo. 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My name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. Welcome back. Investors eyeing whether the bank of japan will put an end to the countrys ultra loose monetary policy. Not the end to the monetary policy, but might just tweak things. Even if they go from negative rates to positive rates, it wont be 6 or 4 . It will still be low. We have been negative. 1 for a long time. They will not put an end to the loose monetary policy, but make it less loose. It is important. This is after the countrys largest trade unions said wages are set to rise 5 this year. Thats big. Thats the biggest in 30 years in that time. It comes after the finance minister held the end of deflation. Held the end of deflation, but we have not seen the end of negative Interest Rates. Yeah. Chinese home prices, meanwhile, fell in february deepening the housing prices. Prices for the biggest cities dropped 1 on the year. The data comes days after moodys slashed rating on the statebacked developer to junk. Ecb board member is calling for a rate cut in june claiming he sees three moves lower starting in june. He will focus on meetings with the new Economic Projections in september and december. The European Central bank chief economist said europe is on track to meet the 2 target and inflation and sees rate cuts in the Second Quarter. I spoke to him yesterday and asked him to expand on what is spring and when can investors expect cuts and if there is a danger of going too far, too fast . What is at the start of the year, the turn of the year in january and february with the dimensions to the data. We need to see that settle down a bit. I think we were very good at the process and analyze the data to make projections. We have a fairly stable view we are on the way back to 2 . I think we have the time to reflect and validate that and see more confirmation especially in those segments. It is not overall core inflation, but services component. I think we have some time to see further validation because it is important to get the initial transition away from holding toward starting restriction. I spent most of the year trying to work out where the interpretation of spring was in davos. He was a little bit more vague on the timing. Now he is saying spring could be the right time for a cut. That doesnt mean april, but june . As a technical economist, it sounds like q2 to me. Q2. From the macro point of view, q2, we think in terms of that in the macro. I think q2 is a time when we will be far enough into 2024 to see more wage dynamics and price pressure. We will learn by april and more by june. I hear what you are saying. We will learn more by june. As the introduction is him saying we need to go aggressively. He was talking one in june and one in july and the lovely break and two more by the end of the year. Does that sound too much given the evidence you have . I think it is very important, especially for me and my role, to make sure that we avoid trying to provide guidance to the market. I think we have a good framework for making decisions where we emphasize inflation and what we see in underlining inflation and the market. All of those dimensions we learn meeting by meeting. Im not going to try to forecast the rest of the year or next year. The market does that. Im sure you talked to the investment chunommunity. For me, i dont think i should look beyond the next heameeting two. For more on the exclusive interview with the ecbs philip lane, head to cnbc. Com. Qatar airline has submitted a proposal to boeing for new aircraft as well as airbus. Speaking to dan murphy, they were discussing Quality Control issues. Dan, it was quite a show of support over the press boeing has weathered in the recent weeks and months. Reporter indindeed, karen. The new ceo of Qatar Airlines is still ordering from boeing despite the crisis with the planemaker. From order is yet to be revealed, but he said it is quote big. We dont know the full details, but it comes in response to what he also said was rising demand for air travel in the middle east region, but around the world. He has seen a 30 increase in passenger numbers in the last four months alone. He is now targeting root expansion and growth in key markets around the world, including china, india, australia and japan. This comes as Qatar Airways is facing a regional competitive environment with big players like emirates battling for Margin Expansion on the key routes in the region. Alongside saudi arabias riyadh air which is the latest entry into this market which is a very well funded airline set to be buying more planes of its own as it grows in the domestic market in saudi arabia and the region. I asked almeer about the competition and the outlook moving forward. Here is how he responded. We lived in this competition environment for a very long time. You know, whenever Qatar Airways, you immediately think of Qatar Airways. We have lived in the environment for many years. For us, competition is very important. Competition will help us raise the benchmark to help us give our passengers better experiences. As long as it is healthy competition, why not . This is what we are looking for here. Im talking about emirates. When it comes to riyadh as well, we welcome competition. We dont feel pressure from riyadh being a new player in the market. We have established our company for many, many years. We have established our base when it comes to our customers. We have loyal customers that will always fly kQatar Airways and not fly with anybody else. The number of clients, loyal clients, keeps growing. For me, the way i see it, pressure is on riyadh air to come on the market where they have to come pete with the bestf the best. There is no pressure on us. What is your message to the competition . My message specifically to riyadh air is welcome to be one of the airlines in the middle east. We will have our doors open for them to assist and help if they need any help. We will wish them luck to be competing with the best in the industry. Reporter the new ceo of Qatar Airways there speaking to cnbc after taking the job in november following the 27year rule of his predecessor of akbar al baker. This is the conversation of the leadership style and strategy moving forward. The focus for Qatar Airways is not just growing the business from here, but capitalizing on the momentum that they saw off the Qatar World Cup with the profit of 1. 13 billion for fiscal year 20222023. How is the business performing . I asked if Qatar Airways would consider going public with the numbers it is printing . It is not something he ruled out. This has been discussed for a very long time. I think the decision should be made after a thorough discussion between us and qatar authority. Nobody knows. Maybe in the future this will be the decision that will be made. It doesnt sound like you are ruling it out as an idea at this point . No, we will wait and see. Watch this space. The airline so far is performing very well and it will continue to perform very well. I believe, again, this is a choice that we will not go away from. We might consider in the near future. Reporter one other key points to make here as part of the Strategy Refresh to Qatar Airways 2. 0. Almeer told me since he took office that he reset the staff and addresses criticis