Maralagos estate. Covid lockdowns a day after beijing locks couns tourist hott and slips reverse after a Second Quarter loss. Good morning welcome to street signs. Lets check in on markets. Definitely heading into the august lull and trading months that happen this time of year. Markets were positive. Chinese equities moving into positive territory again, capped by fears of geopolitical tension with the west and u. S. Specifically and covid breakouts. That is capping the movement today, the picture is negative after positive session yesterday. The stoxx 600 dipping. 30 in early trade. We are getting corporate earnings well get into some of those during the course of the next hour for the most part, investors are watching for tomorrows cpi Inflation Report which is a key indicator for investors if the fed is getting ahold on the inflation. Lets switch and you can see the ftse 100 trading on the flat line not doing a lot over here. Although iwg is major under performer today. That stock down 15 . It is dragging the ftse 100 down cac 40 in france is down dax is down as maker is down and the ftse mib is up. 80 . In terms of sectors, this is the breakdown by individual baskets. You see right at the bottom with more high data sectors tech down. 80 this is the knock on the tech performance in the u. S. Pulled down by nvidia that stock down 6 points down. Pulling down the index travel and leisure down. Basic resources down 1 as well. At the top, insurance up. 40 . Banks having a good day today. Watching what Interest Rates are doing closely. As for commodities, this is the picture for wti and brent. Down 1. 1 . Very interesting couple of weeks for the oil complex. Of course, we continue to grapple with supply on one side with opec plus delivering an increase of 100,000 barrels. Demand is another key driver going forward. What happens to the state of the Global Economy and one other thing to add to the mix which is interesting is yesterday the eu revived teches to look at potentially signing the iran not Iran Nuclear Proliferation deal which was stopped in its tracks by the Trump Administration a couple of years ago. That could mean new oil could come to the market something to keep an eye out if you are watching the commodities. Julianna it would be fascinating to see revival of the deal. Yesterday, a piece of good news in the u. S. Consumer Inflation Expectation dropped sharply. Federal reserve could loosen their grip expect inflation to run at 6. 2 in the next few months and 3. 2 over the next three years. Historically high, the figures show a market decrease from the expectation with the drop in fuel and expectation of food and housing will also cool investors will look for a sign tomorrow after the Interest Rate hikes from the fed. The figure for july is expected to point to annual rise of 8. 9 . Down from june of 9. 1 we saw the First Six Months of the year and now private equity giants have all reported declining as ssets in the Second Quarter results coupled with rising Interest Rates and the higher inflation environment im happy to bring in the head of private research. Good morning, dillon we have spent the last few months reviewing the Bank Earnings one key take away is the big dry up in Capital Markets activity there hasnt been a lot of deal make in the first half of the year compared to the first half of 2021 when it was the major theme for Public Markets let me ask you how the landscape is looking for private markets do you see activity there starting to dwindle a little bit . Thank you for having me on. To abse to answer your question, question private equity or Venture Capital, the deal float is languishing. You can point to a number of factors why that is the case private equity is harder to come by direct lending fund have filled that gap the high yield bond and low leverage markets have been more difficult in last few months it will add the preipo portfolio have been hit hard by the tech sell off. I think deal makers are more cautious in general. We actually are just putting up a chart of rates of return here it los looks as though the prive equity is leaning toward positive territory how long will it take before the stock market rout we had before we see returns it is important to note we he are coming off the best year for private equity returns about 46 . Preliminary numbers show that figure to be about flat. Maybe 1 or 2 in the first quarter. We dont have data for q2. We can take signs from what we see in Public Markets. Data shows private equity returns in the s p 500 have squared about. 7. We can expect that private equity fund returns are markettomarket returns will follow that of Public Markets in the first couple quarters of the year that being said, i think deal makers will use that as a signal to pick up and be more aggressive especially when it comes to take private transactions some of the best performing vintages in private markets are those that began investing in a down turn. From 2001 to 2003 and 2008 and 2009 dylan, let me pick up that point of privates. 2021 was the record deal private equity was sitting on record amounts of dry pouwder you see that as an opportunity for private equity firms when could we expect them to deploy the capital you talk about potentially investing after a down turn. When is that should that be what we expect . It is hard to know for sure look for volatility dampens a bit. I would keep an eye out for what form those take. In 2020, when covid hit and we saw the selloff, we saw structured deals and preferred equity from firms like si silverlake who saw that as an opportunity. I think you are likely to see similar deals happen this time. Even if it is not full on privates private equities will get involved dylan, when it comes to the investor side of private equity, typically they have been prime shareholders in the funds. You are increasingly seeing private equity turn to other investors and individual investors. You got places like moon fare popping up which offers individual investors to invest in private equity funds. How do you think about that market and idea that private equity is trying to open up to possibly less sophisticated investors given the nature of the deals . There has been a years long move to the retail or the High Net Worth market blackstone and some of the publicly traded Asset Managers have telegraphed strategies to open up potential fund raising to a Larger Client base. That being said, i think institutions like sovereign wealth and Family Offices and so forth, those will account for the bulk of fund raising space get back to retail there is a push even to open up private equity allocations in defined Contribution Plans 401 k s in the United States there is a huge regulatory hurdle to make that happen at scale. Individual investors missed out on a lot of the gains seen by private equity and Venture Capital firms. It could be a plus for investors. Interesting topic dylan, thank you for joining us for the conversation dy dylan cox at pitchbook. Federal investigators received documents from the ma maralago resort. Allies of the former president have criticized the search that the fbi is a political instrument the white house was not given a heads up before the search was conducted. Joumanna, this feels like this could be a big story details are thin at the moment to my mind, why it matters most, could this affect former president trumps decision to run in 2024 . Could it impact his ability to run at this point, anything we say would be akin to speculation we have to see what the results of the raids are what i thought was interesting from all of this, julianna, is the Republican Party as a whole rallied behind donald trump in the last couple hours. You had the my minority leader mccarthy who said they will investigate the Justice Department should the republicans take over the house in november. That is one interesting point to watch. Also the frontrunner, another frontrunner for the republican leadership, ron desantis attacked the search. Calling it another weaponization against the regime political opponent it tells you despite everything that happened and the investigations into the january 6th capitol riots, the Republican Party is very much the party of donald trump. It is a fascinating timing with the midterms around the corner and the republicans facing a serious question now as to whether they do continue to rally behind him or not and implications could be tremendous on to some geopolitical considerations ta taiwans foreign minister accused china of looking for executions to conduct military exercises including u. S. House speaker Nancy Pelosis visit in the region in response, taiwan held live fire military drills on the southeast coast. Officials said the exercises were being held to test its combat readiness in response on to any potential threats President Biden was asked if he was worried and if it was wise for the speaker to visit the island. Im not worried, but im concerned they are moving as much as they are i dont think they will do anything more. Was it wise for the speaker to go to taiwan . It was her decision china enforced new lockdowns in the region of tibet they locked down the largest city after 18 covid cases were dis discovered elsewhere, tourists are in lockdown in hainan as authorities try to limit the covid outbreak sam has this report. Reporter they are carrying out mass testing with the worst breakout so far. Hainan recorded two symptom atic cases last year, but has seen 1,500 direinfections this month alone. Transport has been suspended this comes as china has been relaxes travel rules in recent months as it battles more var variants hainan is coming at the peak season of the height of the summer holidays. Thousands of tourists have been left stranded. The gambling area has been shutdown after one case was found to have had covid and comes days after macao reopened casinos and dining in restaurants. The two areas in china are under scoring the uncertainty around dynamic zero covid and whackamole approach. In singapore, im sam badas, back to you. Chinese car sales are recovering as production ramps up retail sales jumped 20 last month according to the china car association. New Energy Car Sales doubled to almost half a million. Tesla sales fell by 2 3 to 28,000 as they schedule to operate in shanghai. And coming up, continental with a Second Quarter loss and comments from the cfo next this is xfinity rewards. Our way of showing our appreciation. With rewards of all shapes and sizes. [ cheers ] are we actually going . Yes and once in a lifetime moments. Two tickets to nascar yes find rewards like these and so many more in the xfinity app. As promised we detail what we heard from coulntinental. The german auto parts maker is optimistic production will pick up in the second half of the year as supply chain stabilizes. Speaking earlier this morning, the cfo told cnbc the outlook is not totally without risk we always said we expect quite significant headwinds from the total about potential of 3. 5 billion impact from the cost of inflations that are out there. This is still exactly what we put as basis when we set out d guidance looking at dguidance, we will have a stable supply in germany for the year if that should change, this might have impact. On the other hand, we are getting ready and prepared to look at alternative supplies beyond gas. And elsewhere, ihg doubled in the first half to 361 million. The holiday inn owner resumed Dividend Payments and 500 million Share Buyback program. Stock is down 1 point on the news. In other stock we are looking at closely negative in trading. Iwg posted a 22 boost in revenue with total sales of 1. 31 billion pounds however, the stock is taking a bit of a beating speaking to the colleagues earlier, the ceo said iwg has benefitted from one work space trend in particular. My people and company allows companies to cut costs 50 less fixed costs on the Balance Sheet and its what the people want it is here to stay andgrowing fast you can see that in our numbers. The underlying number here is like for like 260 million in positive cash flow in the first half that is the best result we had since prepandemic times weve chosen to invest in more accelerated growth which we are doing in partnership and we are growing quickly to keep up with the demand in particular, outside of the big cities in the suburbs and countries. That is where people want to work now german munich reported a fall in the Second Quarter after the exposure to russia the company confirmed the share target of 1. 4 . And the british insurer said the strength and direct investment units beat market he can pecexpectation. The ceo spoke out. They are finding life difficult with food and fuel prices going up. And a horrible background as People Struggle to pay bills i think it is a time for looking after customers and colleagues that work for us and putting those people first we have a particularly resilient model. Resilient for the last decade producing 8 to 10 growth year after year you know, we look at the business over a long period of time you know, we are not trying to make shortterm tactical profits. Longterm sustainable profits from our business. Jpmorgan chase says cryptocurrency has found a floor as bitcoin and ethereum rebounded from june lows cryptocurrency has been trading for more than a year kate rooney has this report. Reporter july has this relief after nine months of downward pressure. Jpmorgan chase thinks the bottom is in for cryptocurrency a note to clients today highlighting limited contagion of terra luna and ethereum they say prices in trading volumes are still depressed, but it appears the cryptocurrency markets down a floor bitcoin prices reclaimed two levels above the 200weekly moving average and back above the cost basis for investors. 24,000 is the average cost that investors paid to buy their bitcoin. According to data firm glassnode. Activity suggest there is little influx with new demand a rally in tech stocks as well ethereum has been the big winner in the past month. Crypto stocks are rallying more than Bitcoin Coinbase on a tear after a partnership with blackrock there has been a short squeeze playing out. Last week, micro strategy robinhood getting a boost in recent weeks and the Crypto Mining flamnames are the bigges winners. All up more than 50 on the month. Still, plenty of headwinds high profile hacks weighing on consumers. The u. S. Treasury department banned all americans from using the service tornado. Tornado has really been industrial in a handful of high profile hacks this year. The s. E. C. Has been cracking down on unregistered investors are watching that and inflation number on wednesday with the bullish narrative a good couple of weeks with crypto in global stocks. I think what is interesting here, julianna, the fact that Institutional Investors and big names we look at with the like of tesla, obviously, and micro strategy, because they were involved in the large amount of bitcoin. Both institutions have posted declines of up to 1 billion paper losses on their Bitcoin Holdings the question for me is, yes, maybe we found a floor around 24,000. I thought it was interesting in the Jpmorgan Chase piece that they say the average cost of getting involved in bitcoin was 24,000. For it to go back up to 50,000 or 60,000, you need to have the buy in from the institutional accounts why would an Institutional Investor get involved with the volatility there seems to be a really important difference with bitcoin finding a floor and bitcoin bouncing off that floor. You mentioned losses that tesla suffered tesla offloaded the bitcoin holding. Perhaps that is part of the Jpmorgan Chase call with the major holders of bitcoin which sold out of bitcoin. There is not that risk of further major selling here speaking to investors on the program, im sure traditional Asset Managers are not keen on investing at lower levels. Well take a quick break the cost of living taykes center stage as an the race to replace Boris Johnson heats up welcome back to street signs. Im Julianna Tatelbaum im joumanna bercetche. These are your headlines european equities edge lower with value stocks struggling ahead of wednesdays key u. S. Inflation report. The fbi rates former u. S. President trumps maralago estate chinese authorities impose covid lockdowns in tibet a day after beijing locks down the hot spot of hainan and continental in reverse after the Second Quarter loss, but sees production picking up in the second half its a fairly muted start to trade this morning lets look at where the boards stand. We have fairly flat trade for the ftse 100 up 7 points. Cac 40 trading at the flat line. We have a little bit of red on the dax down. 30 . Continental losses and slipping in rehe vverse as they had a sed quarter loss green for the spanish market up 16 points. I would expect investors are Holding Tight for the u. S. Inflation report tomorrow. This is the picture for currencies dollar on the back of Sterling Sterling up. 30 we have the euro trading firm against