OpenAI Seeks $30 Billion at $1.4 Trillion Valuation

Author: Bloomberg Television · Watch on YouTube

Video authored by the channel shown, not by IANIA; all rights belong to the creator. Transcript and summary generated automatically; the original-language content is preserved.

Original language: English

Original video: OpenAI Seeks $30 Billion at $1.4 Trillion Valuation · Channel: Bloomberg Television · 47:42 · Watch on YouTube

Topics: AI agents, AI infrastructure and hardware, Markets and economy

Summary

Bloomberg Television’s “The Pulse” covers OpenAI’s reported plan to raise $30 billion, its decision to delay an IPO, and the opportunities and risks surrounding AI adoption and infrastructure. BlackRock and KKR executives discuss AI-driven investment, scarce infrastructure capacity, bond-market pressures, energy disruption, and Europe’s investment needs. The program also features Monte dei Paschi CEO Luigi Lovaglio defending his bank’s proposed offers for two Italian rivals amid a competing takeover proposal. Later segments examine European inflation, debate over the U.K.’s relationship with the EU, and Manchester City’s financial-rule violations and potential consequences.

Key points

Bloomberg reports that OpenAI is seeking to raise $30 billion after pushing back plans for an IPO until at least next year; Sam Altman says the company wants time to adjust to new capabilities and safety requirements.
OpenAI is emphasizing enterprise AI agents, which a BlackRock strategist says could accelerate AI adoption and demand for infrastructure.
The BlackRock strategist identifies competition for capital from AI investment and geopolitical energy disruption as key factors affecting bond markets and interest rates.
KKR says digital investments account for roughly 30% of its infrastructure investments, spanning towers, data centers, grid connections, power, and fiber.
KKR’s Vincent Policard says Europe needs substantial infrastructure investment and argues that private capital and operational expertise will be important to delivering projects.
Monte dei Paschi CEO Luigi Lovaglio presents proposed offers for Banco BPM and Banco Generali as a way to create value and maintain competitive pressure on a rival proposal.
Lovaglio says an October 29 shareholder vote would preserve the option to explore his proposal, rather than decide the final contest between the plans.
Faster French inflation complicates budget decisions, while German and euro-area inflation figures are also being watched.
Labour leader Andy Burnham’s comments reopened debate about the U.K.’s future relationship with the EU, including the possibility of rejoining.
Manchester City denies wrongdoing and plans to challenge the Premier League’s finding that it breached financial rules; possible penalties and compensation claims remain unresolved.

Chapters

Start	Chapter	Summary
00:19	OpenAI fundraising, IPO delay, and AI safety	The program reports OpenAI’s target to raise $30 billion and discusses Sam Altman’s explanation for delaying an IPO while the company adapts to new AI capabilities and safety requirements.
03:04	U.S. midterms and foreign-policy implications	Bloomberg discusses President Trump’s campaign schedule, cost-of-living concerns, and what a split Congress could mean for policy, trade, and Europe.
06:12	AI adoption, bonds, and energy disruption	A BlackRock strategist assesses AI agents, safety concerns, infrastructure demand, bond-market pressures, energy disruption, China, and upcoming U.S. economic data.
15:03	KKR on AI and infrastructure investment	KKR’s Vincent Policard discusses investment in data centers, power, grids, and connectivity, as well as European infrastructure needs and the role of private capital.
23:15	Monte dei Paschi’s proposed bank deals	CEO Luigi Lovaglio explains his proposed offers for Banco BPM and Banco Generali, the shareholder vote, and how he views competition from a rival proposal.
36:13	French and European inflation	Bloomberg’s Western Europe economics editor discusses the implications of faster French inflation for budget debates and previews German and euro-area data.
39:27	U.K. debate over rejoining the EU	The program considers Andy Burnham’s remarks about Brexit and the EU, his wider political proposals, and the constraints facing the government’s budget.
44:28	Manchester City’s financial-rule case	Bloomberg explains the Premier League’s findings against Manchester City, the club’s response, and possible sporting or financial consequences.

Quotes

BLOOMBERG UNDERSTANDS THAT OPENAI IS AIMING TO RAISE $30 BILLION FROM INVESTORS. — 00:52

WHAT WE ARE SEEING RIGHT NOW 1-AGENTS RELEASE MAY WELL CATALYZE A WAVE OF AI ADOPTION — 06:45

IT IS AN OPPORTUNITY FOR OUR SHAREHOLDERS TO KEEP AVAILABLE AN ALTERNATIVE TO INTENSA’S OFFER — 25:51

MANCHESTER CITY MAINTAINING THEIR INNOCENCE SAYING THEY WILL CHALLENGE THIS DECISION FROM THE PREMIER LEAGUE. — 47:10

Concepts and entities

OpenAI, Sam Altman, AI agents, BlackRock, KKR, Monte dei Paschi di Siena, Intesa Sanpaolo, European Union, Manchester City

Full transcript (original language)

00:19 >> NEWS MAKERS AND MARKET MOVERS, THIS IS “THE PULSE” WITH FRANCINE LACQUA. FRANCINE: GOOD MORNING, EVERYONE. WELCOME TO “THE PULSE.” I’M FRANCINE LACQUA IN LONDON. TECH DOMINATING THE NEWS AGENDA THIS MORNING. THE U.S. PRESIDENT MEETING WITH LEADING FIGURES IN AI BEFORE HITTING THE CAMPAIGN TRAIL AHEAD OF THE MID-TERMS. WE’LL DISCUSS WHAT THIS MEANS FOR NARCOTICS AND LOOK AHEAD TO CRUCIAL U.S. INFLATION READINGS.

00:52 BLOOMBERG UNDERSTANDS THAT OPENAI IS AIMING TO RAISE $30 BILLION FROM INVESTORS. IT COMES AFTER THE STARTUP AFTER THEY PUSHED BACK PLANS FOR AN INITIAL PUBLIC OFFERING. SAM ALTMAN HAS BEEN SPEAKING WITH BLOOMBERG ABOUT AI SAFETY CONCERNS AND THE DECISION TO PUSH BACK ITS IPO UNTIL AT LEAST NEXT YEAR. >> WHILE WE ARE GOING THROUGH THIS PERIOD OF ADJUSTING TO THIS NEW LEVEL OF CAPABILITY AND NEW SAFETY REQUIREMENTS FOR THAT, WE JUST WANT TO GET OUR FEET UNDER US AND MAKE SURE WE UNDERSTAND HOW TO OPERATE IN THIS NEW WAY AND BE ABLE TO

01:24 MAKE SOME OF THESE DECISIONS IN FRONT OF US 2002 PRESSURE BEING A NEWLY PUBLIC COMPANY AND THEN I THINK WE’LL BE PUBLIC AT SOME POINT, THERE WILL BE MORE NEW LEVELS THAT COME BUT NOT ALL AT THE SAME TIME. FRANCINE: SAM ALTMAN’S COMMENT CAME AS OPENAI UNVEILED AN ALWAYS AIAGENT. – AGENT. >> WE’RE STARTING IN THE ENTERPRISE AURIN PAVEMENT IT IS

01:55 FOR A COUPLE OF REASONS. NUMBER WAKE UP, THERE IS A LOT OF VALUE WE CAN BRING TO THE ENTERPRISE COMMERCE. WE HAVE 2.5 MILLION BUSINESSES ON THE PLANET. THE BUSINESS SEGMENT GREW 100% QUARTER OVER QUARTER. IT IS ON FIRE. FRANCINE: THAT SEEKS TO SIDESTEP NEW GOVERNMENT RULES ADDRESSING CONCERNS OVER AI RISKS. PRESIDENT TRUMP REJECTED THE IDEA OF FEDERAL REGULATION ON

02:31 AI BUT ENDORSED USING OUTSIDE AUTOOR THES TO ADDRESS THE SAFETY. >> – AUDITOR TO ADDRESS THE SAFETY. PRES. TRUMP: THE BIGGEST PEOPLE IN THE WORLD SIGNED THAT AND I SIGNED IT AS PRESIDENT. IT IS A FORM OF PROTECTION. >> IS THIS BINDING IN ANY WAY? PRES. TRUMP: I THINK IT IS NORMALLY BINDING YEAH. FRANCINE: PRESIDENT TRUMP GETS BACK ON THE CAMPAIGN TRAIL WITH A RALLY IN OKLAHOMA TODAY AND ANOTHER IN ALABAMA TOMORROW. BLOOMBERG UNDERSTANDS THAT PRESIDENT TRUMP WILL BE ON THE

03:04 ROAD FOR CAMPAIGN EVENTS ALMOST EVERY DAY IN OCTOBER. LET’S GET MORE FROM BLOOMBERG. TRUMP’S APPROVAL RATING IS NEAR RECORD LOWS AHEAD OF THE MID-TERMS. CAN HE TURN THINGS AROUND? >> ONE THING IS FOR CERTAIN, HE DOES NOT HAVE MUCH TIME. WE’RE A FEW WEEKS AHEAD OF THE CRUCIAL MID-TERM ELECTION. THE POLLS ARE NOT LOOKING GOOD FOR HIM OR THE REPUBLICANS CHANCE IN THE HOUSE AND PERHAPS THE SENATE TOO. I THINK THE MAIN ISSUE NOW THE ADMINISTRATION IS GOING TO TRY

03:35 TO GET AHEAD OF HERE IS THIS ISSUE OF THE COST OF LIVING AND HIGH ENERGY PRICES. OF COURSE WE CAN SEE THAT LINK BETWEEN WHAT’S BEEN HAPPENING GEO-POLITICALLY, THE WAR IN THE MIDDLE EAST AND WE SEE NO SIGNS OF IT ABATING AND IMPACT ON ENERGY PRICES AND OF COURSE THOSE RECENT ACTIONS BY THE U.S. TOWARDS CANADA. A BIG TRADING PARTNER WITH THE U.S. AND THAT – THOSE TRADE ACTIONS

04:06 IMPACTING A LOT OF IMPORTANT SWING STATES NEAR THE CANADIAN BORDER. AS WE KNOW TRUMP IS GOING TO BE HITTING THE CAMPAIGN TRAIL FOR EXAMPLE. WE ALSO EXPECT HIM TO MAKE AN ANNOUNCEMENT. ALASKA, THERE WAS A VERY, VERY TIGHT RACE THERE FOR THE REPUBLICAN INCUMBENT DAN SULLIVAN WAS UNDER PRESSURE. HE WAS GOING AAND THEN EVENTS FOR EXAMPLE IN THE WHITE HOUSE TRYING TO FLAG THIS INVESTMENT FOR THE STATE.

04:38 THOSE KIND OF INTERVENTIONS WE EXPECT TO SEE BY THE PRESIDENT IN THE WHITE HOUSE OVER THE COMING WEEKS. FRANCINE: WHAT CAN A SPLIT CONGRESS MEAN FOR FOREIGN POLICY IF THE TEMPERATURES WIN BIG, WHAT CAN IT MEAN FOR FOREIGN POLICY IN EUROPE? >> PEOPLE ARE WATCHING THIS CLOSELY. NUMBER ONE, IT WOULD BE THE IMPACT ON FOREIGN POLICY DECISIONS LIKE THE UKRAINE AND THE U.S. IS STILL THAT MAIN DEFENSE PARTNER FOR A LOT OF THE EUROPEAN COUNTRIES AND OF COURSE IN TERMS OF ITS COMMITMENT TO – UKRAINE IS SUCH A KEY PLAYER IN TERMS OF

05:10 NATO. WE’LL BE WATCHING WHAT IT MEANS FOR THAT. SECOND OF ALL IS TRADE. THE E.U. FOR EXAMPLE SIGNED A TRADE WITH DEAL WITH TRUMP A YEAR AGO. IT HAS BEEN LOCKED DOWN AS EUROPEANS SEE IT. THERE ARE CONCERNS THERE COULD BE FURTHER MEASURES AT SOME POINT ON THAT AND THRENE THEN THERE IS THE MARKET SENTIMENT. THE MARKETS TEND TO LIKE A PLITT CONGRESS, THE IMPLICATION BEING THERE IS ROOM FOR COMPROMISE. IF ONE HOUSE GOES THE REPUBLICANS AND ONE TO THE

05:41 DEMOCRATS, MARKETS LIKE THAT. THERE ARE HUGE ISSUES AROUND INFLATION. HUGE ISSUES AROUND ENERGY PRICES WHICH ARE LINKED TO THE WAR OBVIOUSLY IN THE MIDDLE EAST. SO ANY POLICY CHANGES AROUND THAT WILL BE VERY IMPACTFUL FOR THE REST OF THE WORLD. FRANCINE: SUSAN, THANK YOU SO MUCH AS ALWAYS. TERRIFIC BRIEFING AHEAD OF THE MID-TERMS FIVE WEEKS AWAY. NOW WE’RE JOINED BY GLOBAL CHIEF INVESTMENT STRATEGIST AT BLACKROCK. THERE ARE SO MANY UNKNOWNS.

06:12 COMING FROM ALL SIDES. WHAT IS THE BASIS YOU’RE CERTAIN ABOUT? THE ECONOMY? YOU STALK ABOUT AI SCARCITY. BEFORE WE GHETTO THE UNKNOWNS? >> I THINK AI SCARCITY IS GETTING REINFORCED. RIGHT NOW IT FEELS LIKE A PRETTY BIG MOMENT NOT NECESSARILY BECAUSE OF THE MODEL RELEASE BREAKTHROUGH BUT MORE ON THE APPLICATION BREAKTHROUGH. YOU LOOK AT THE AGENTS, PLAYED AROUND WITH AGENTS IN THE PAST

06:45 AND THEY ARE A LITTLE IF I HADLY TO SET UP. REPRESENTING A TECHNICAL HURDLE. EXTREMELY EASY TO SET UP. YOU DON’T ACTUALLY DO THE SETUP YOURSELF. MOST PEOPLE DON’T CARE ABOUT THAT. WHAT WE ARE SEEING RIGHT NOW 1-AGENTS RELEASE MAY WELL CATALYZE A WAVE OF AI ADOPTION AND WITH THAT, WE’RE TALKING ABOUT FLU REVENUE OPPORTUNITIES, THEY ARE

07:18 THINKING ABOUT GREAT CUSTOMIZED AVS AND PAYMENTS. NOT JUST SUBSCRIPTION. ALL OF THAT IS GOING TO ACCELERATE THE DEMAND FOR AI AND INFRASTRUCTURE AND TRADE SCARCITY TRADE. FRANCINE: SAFETY CONCERNS. IS IT PART AND PARCEL AS WE ADOPT THIS TECHNOLOGY? OR PUT A STOP TO SOME OF THE CAPEX SPENDING IF IT IS CURTAILED? >> IT IS POSSIBLE ON TWO FRONTS. THERE IS AN INTRINSIC TRADEOFF

07:49 BETWEEN CONVENIENCE AND SAFETY AND PRIVACY AND THEN THE SECOND FRONT, WE WERE TALKING ABOUT THE MID-TERMS. ONE THING I’M PAYING CLOSE ATTENTION TO IS HOW THE NARRATIVES AROUND AI DATA CENTER IS EVOLVING. IF WE COULD SEE ACTUALLY POTENTIAL KIND OF STALLING TO HAVE COMPETITION FOR CAPITAL WE HAVE SEEN SO FAR THIS YEAR BECAUSE DATA CENTERS BECOMING LESS POPULAR. WE BRING ALL OF THAT TOGETHER, IF WE DO SEE SEE POTENTIAL SLOWDOWN CONSTRAINTS OF AN AI

08:20 BUILDOUT, THEN INFRASTRUCTURE, LISTED INFRASTRUCTURE THAT ALREADY HAVE OPERATING CAPACITY MAY BECOME MORE SCARCE AND MORE BEAT UP. FRANCINE: WHAT ARE THE OTHER KEY STORIES? THE BOND YIELD AGAIN IS SOMETHING WE’RE A ELECTRICITY OBSESSED ABOUT. IS THAT A SIMPLE FED INFLATION, ENERGY? IS IT JUST THOSE THREE PUT TOGETHER? >> TWO MAIN DRIVERS SO FAR THIS YEAR. WE HAVE BEEN TALKING ABOUT

08:51 BONDS AND ARE UNDERWEIGHT IN LONG DURATION FOR A VERY LONG TIME NOW. THIS IS PLAYING OUT IN TERMS OF DIRECTIONAL TRAVEL THIS YEAR, IT IS NOTHING NEW. WE HAVE BEEN IN THIS NEW REGIME OF SUPPLY CONSTRAINTS SINCE 2021. THE TWO FORCES IN PARTICULAR ACCELERATED THIS YEAR. ONE IS THE COMPETITION FOR CAPITAL BECAUSE OF AI. YOU LOOK AT ALREADY UNPRECEDENTED POINTS OF VIEW CAPEX BUILDOUT AT THE END OF LAST YEAR. HYPER SCALERS ARE INCREASING 50%. THAT IS GOING FOR UNPRECEDENTED

09:24 LEVELS TO UNPRECEDENTED LEVELS. THAT HAS REALLY INTENSIFIED NEED FOR CAPITAL. THE OTHER FACTOR IS GEO-POLITICAL FRAGMENTATION AND ENERGY DISRUPTION AND OIL PRICE THAT IS GETTING INCREASINGLY CORRELATED WITH RATES. WE’RE TALKING ABOUT THE LEVEL LEVEL OF CORRELATION NOT SEEN SINCE THE 1990 EATS. THE TWO FACTORS PUT TOGETHER . INCOME IS BECOMING VERY ATTRACTIVE. WE LIKE – ON THE CURVE.

09:58 IT DOESN’T TAKE AS MUCH RATE REPRICING. ACTUALLY TAKES MORE RATE REPRICING TO OFFSET THE – YOU COLLECT BUT I THINK AT SOME POINT THERE IS A MORE BALANCED CONVERSATION TO BE HAD ABOUT MAYBE TECHNICALLY COULD WE BECOME A BIT LESS NEGATIVE ON BONDS GIVEN HOW MUCH REPRICING HAS ALREADY HAPPENED. FRANCINE: DO YOU NEED TO HIT A CERTAIN LEVEL? WHAT NEEDS TO HAPPEN FOR THAT TO CHANGE? >> I THINK WE HAVE TO EVALUATE IF DRIVES OF RATE REPRICING AND

10:34 SEE IF THEY ARE – OVER THE NEAR TERM HORIZON OR IF THERE IS MORE TO GO. CAPITAL SOMEONE. FISCAL SOMEONE AND OF COURSE IT DOESN’T HURT TO HAVE A ABOVE IT CERTAINTY OR PROSPECT OF OIL, ENERGY DISRUPTION RESOLUTION ALTHOUGH IT IS VERY LARD TO SAY. FRANCINE: WE’RE SEEING A BIT OF WEAK PRICING IN FRENCH BONDS AHEAD OF POLITICAL CONCERN, THE PRESIDENTIAL ELECTION, THE FISCAL PROPOSALS. SELLING THAT JUST PART AND PARCEL OF WHAT 2027 BRINGS OR

11:05 ARE THERE OTHER OPPORTUNITIES? >> I THINK SO. WHEN WE TALK ABOUT BUDGETS IT CAUSES MARKET NERVOUSNESS. THIS IS WHAT WE’RE SEEING IN FRANCE. WE SAW VERSIONS OF THAT HERE IN THE U.K. I THINK AS WE HEAD INTO HEAVY ELECTORAL CALENDAR, THIS IS LIKELY GOING TO BE A FEATURE THAT WILL STAY BUT MORE BROADLY, I THINK THIS IDEA OF RETURN INTO FIXED INCOME, INCOME RETURN INTO GOT BONDS APPLIES TO EUROPE TOO. FRANCINE: WITH ENERGY, EVERY DAY CHANGES.

11:42 WE THINK QUITE CLOSE TO A RESOLUTION AND THEY BE A PRICE SPIKE. >> IF WE KNEW AT THE BEGINNING OF THE YEAR THAT THE STRAIT OF HORMUZ WOULD STAY FOR HALF A YEAR, THIS IS NOT THE ENERGY PRICE LEVELS THAT WE WOULD BE FORECASTING. SO FAR WE HAVE BEEN LUCKY BECAUSE OF BUFFERS. STRATEGIC RESERVE RELEASE. BUT THE PRESSURES WEARING THIN. IN THE MEANWHILE, MACRO DAMAGE IS ACCRUING. WE ARE ESTIMATING BECAUSE OF THE ENERGY DISRUPTION THAT WE HAVE SEEN SO FAR. GLOBAL GROWTH HAS BEEN DRAGGED

12:14 DOWN BY 507 BASIS POINTS SOFT THIS YEAR. – 50 PAY SIS POINTS SO FAR. THAT IS CONTINUING TO ACCRUE. ENERGY ISING A OF BIG CAVEAT. TO KIND OF ONE NERVOUS BETTOR FOR RATE MARKETS AND NOT JUST OIL. WE’RE REACTING MORE TO THE DISRUPTION THAN OIL PRICES. FRANCINE: HOW DO YOU SEE CHINA? YOU BASICALLY SAY THEY ARE COMPETING ON QUALITY.

12:46 WHAT DOES THAT LOOK LIKE IN TERMS OF THE TRADE RELATIONSHIP WITH CHINA AND IN THE AI FACE IS? >> THERE ARE TWO CHAINS. THE ONE THAT IS EXPORTING COMPETITIVELY TO THE WORLD ON QUALITY PRODUCTS INCLUDING AI MODELS AND THEN THERE IS THE OTHER PART OF CHINA THAT IS STILL BEING KIND OF WEIGHED DOWN BY PROPER TEAM MARKET OVERHANG AND STRUCTURAL HEAD WINDS PRICING POWER EVOLUTION, ALL OF THAT IS STILL ONGOING. BROADLY NEUTRAL CHINESE AS PART

13:23 OF OUR EMERGING MARKET CONVICTION WHICH IS MORE POSITIVE. AND WE THINK THAT REALLY IT REQUIRES A MORE SELECTIVE APPROACH. SO WE LIKE PART OF THE CHINESE MARKETS THAT ARE MORE IN ADVANCED MANUFACTURING, EXPORTING TO THE WORLD THAT HAVE PRICING POWER BECAUSE THAT IS QUITE UNEVEN. INDUSTRIAL POWER DOES NOT TRANSLATE AUTOMATICALLY INTOABILITY. PART OF THE ECONOMY ARE WEIGH

13:55 DOWN BY THE STRUCTURAL HEAD WINDS ARE LESS POSITIVE. FRANCINE: WE HAVE COUPLE OF DATA POINTS AND AI NEWS AND A COUPLE OF THINGS THAT THE FED ARE WATCHING FOR. IS THERE ONE DATA POINT YOU WANT TO KNOW ABOUT? >> THE INFLATION FRONT LATER AND THE NONFARM PAYROLL ON FRIDAY. YESTERDAY, THE JOBS NUMBER STILL PAINTS A SLOW MOVING LABOR MARKET. THE OPENING IS LOWER. THE HIRING IS HIGHER. THE BIGGER PICTURE IS THAT RIGHT NOW THREE-MONTH AVERAGE

14:29 OF MORE THAN – JOB CREATION IS NOT WEAK. IT IS NOT WEAK. IT LOOKS WEAKER COMPARED TO WHEN WE CAME OUT OF THE PANDEMIC. IT IS NOT WEAK. BREAK EVEN JOB CREATION IS MORE – IS CLOSER TO 40 K. AT THE CURRENT LEVEL OF JOB CREATION, WE’RE TALKING ABOUT PERSISTENT INFLATIONARY PRESSURE, WAGE PRESSURE WHICH IS LIKELY GOING TO COME THROUGH THE PCEPRINT AS WELL. FRANCINE: THANK YOU FOR JOINING US. GLOBAL INVESTMENT STRATEGIST AT BLACKROCK. COMING UP, WE’LL STAY WITH US

15:03 OUTLOOK FOR INFRASTRUCTURE. VINCENT POLICARD, COMING UP NEXT. THIS IS BLOOMBERG. FRANCINE: AI IS DRIVING A DEMAND FOR EVERYTHING FROM DATA CENTERS TO POWER, ELECTRICITY GRIDS CREATING HUGE OPPORTUNITY FOR INFRASTRUCTURE INVESTORS.

15:35 KKR, ONE OF THE BIGGEST INVESTMENT FIRMS HAS RAISED OVER 9 BILLION FOR ITS BIGGEST EVER INFRASTRUCTURE FUND. $9 BILLION ALREADY COMMITTED. LET’S DISCUSS A OF THIS AND THE OUTLOOK WITH VINCENT POLICARD. THANK YOU SO MUCH FOR JOINING US. I HAVE A MILLION QUESTIONS. HOW DO YOU APPROACH AI FROM A DEAL MAKING PERSPECTIVE? HOW MUCH IS – IS THIS COMMITMENT FROM INFRASTRUCTURE IS RELATED TO AI?

16:07 >> SO DIGITALLY, IT HAS BEEN A BIG PART OF WHAT WE DO. IF YOU LOOK AT WHAT WE HAVE INVESTED, ROUGHLY 30% OF THAT HAS GONE TO DIGITAL. WE STARTED INVESTING IN TOWERS. INCLUDING YOUR OWN COUNTRY AND MOST RECENTLY DATA CENTERS HAVE BEEN A BIG PART OF THAT WHEN YOU THINK ABOUT AI IT IS NOT JUST DATA CENTERS, IT IS THE POWER SIDE OF THE GRID CONNECTION, THE FIBER CONNECTION. FRANCINE: IT COULD BE COOLING ASSETS. IT COULD BE INFRASTRUCTURE THAT

16:39 WE’RE TALKING ABOUT. RIGHT NOW SPECIFIC EVERYONE IN EVERYTHING THAT WE’RE TALKING ABOUT ABOUT SAFETY CONCERNS ON AI, DO YOU HAVE A CLEAR IDEA OF WHAT YOU WANT TO INVEST IN? >> SO WE ARE THE INFRASTRUCTURE PROVIDER TO IT. WE LIKE TO SAY WE DON’T DO ANYTHING THAT IS TOO – AND WE THINK THIS IS THE WAY WE WILL PUT THAT CAPITAL TO WORK. THERE IS A BIG NEED. A CONNECTION BETWEEN THE DIGITAL WALL AND ENERGY AND UTILITY WALL. FRANCINE:

17:13 THERE IS INCREASINGLY TALK OF EUROPEAN SOVEREIGNTY AROUND INFRASTRUCTURE ASSETS ESPECIALLY IN SPACE AND AI AND SECTORS DEEMED STRATEGIC. DO YOU SEE THIS AS A SETBACK BEING AN AMERICAN INVESTOR? >> A COUPLE OF THINGS. WE HAVE INVESTED DURING DURING A PERIOD OF TIME. THE AMOUNT OF KNOWLEDGE, ACCESS, RELATIONSHIPS WE HAVE IS REALLY SECOND TO NONE. THE REALITY, IF YOU TALK ABOUT EUROPE, 700 BILLION, 800 BILLION A YEAR HAS TO GO INTO INFRASTRUCTURE.

17:44 YOU NEED THE CAPITAL. THE MAJORITY OF THE CAPITAL IS COMING FROM THE U.S. FRANCINE: WHEN YOU LOOK AT COUNTRIES AND REGIONS, WHERE DO YOU SEE THE BIGGEST OPPORTUNITIES? >> EVERYWHERE IN EUROPE. THE DIGITAL SPACE, THE ENERGY TRANSITION SPACE, THAT IS TRUE FOR EVERY COUNTRY IN EUROPE. WE HAVE NOW PRESENCE IN THE GROUND. WE HAVE ABOUT 700 PEOPLE IN EUROPE. HALF IN THE U.K.. IMPORTANTLY IN ALL THE EUROPEAN COUNTRIES AS WELL. WHEN YOU TALK ABOUT INFRASTRUCTURE AND AGAIN, THE

18:16 ACCESS, THE CONNECTIVITY, FOR THE INFRASTRUCTURE, THE IT IS CRITICAL TO BE EVERYWHERE. FRANCINE: IS THE U.K. INVESTABLE NOW R MORE THAN CENTRAL EUROPE N.P.R. >> ABSOLUTELY. IF IF YOU THINK ABOUT WHAT WE’RE LOOKING FOR, WE NEED STABILITY – THE U.K. IS GOOD AT THAT. WE NEED – YOU FIND ALL OF THAT IN THE U.K.. FRANCINE: YOU ALSO HEAR FROM THE GOVERNMENT TALKING ABOUT POTENTIALLY NATIONALIZING SOME INDUSTRIES. HOW DO YOU MATCH THE TWO?

18:51 >>> THE GOAL IS TO SAY THERE IS NO REALITY IN POLITICS OUTSIDE TO HAVE FACTS AND THE FACTS ARE THERE IS A – FOR CAPITAL THAT WILL HAVE TO BE PROPER CAPITAL BUT NOT JUST ABOUT THE CAPITAL. IT IS ABOUT THE EXPENSES THAT COMES IT. BEING ABLE TO RUN THOSE COMPANIES BETTER. THIS IS REALLY WHAT IT IS ABOUT. FRANCINE: IN RETROSPECT, ARE YOU CONTENT YOU WALKED AWAY? >> WE COULD HAVE DONE A GOOD JOB WITH THIS COMPANY.

19:24 WE OWN TODAY ANOTHER COMPANY IN U.K. AND QUESTION HAVE A LOT TO BRING TO THE TABLE. TO ADDRESS THE CHALLENGES. WHEN YOU TALK ABOUT THE – PEOPLE THINK ABOUT ENERGY TRANSITION AND DATA CENTERS. LAUREN: THERE IS A WHOLE EXISTING – YOU TILLITES AND TRANSPORTATION IN THE U.K. AND MOST COUNTRIES IN IN EUROPE AND THE U.S. AND THE WORLD HAVE BEEN UNDERINVESTED. FRANCINE: WHEN WE TALK ABOUT THE OPPORTUNITIES IN THIS INFRASTRUCTURE WORLD, IS THERE

19:55 ANYTHING YOU DON’T WANT TO THANK YOU VERY MUCH YOU THINK NOW IS NOT THE RIGHT TIME? >> I THINK IN THIS OPPORTUNITY YOU HAVE TO BE VERY CAREFUL. TAKE THAT AS AN EXAMPLE. THE DEMAND IS THERE. THE NEED FOR CAPITAL IS THERE. THEN THERE IS AN ISSUE AROUND POWER AND EVERYBODY WANTS TO SEE THE TRANSITION. NOBODY WANTS A WIND FARM IN THEIR BACKYARD IN THE SAME KAY EVEN WANTS TO USE AI. MAKE THE BENEFITS TABLE AND

20:28 FIGURE OUT THE THAT. SOME COUNTRIES WILL BE GOOD AT THAT. FRANCINE: FOR THE LAST 10 YEARS I’VE BEEN TALKING ABOUT IS IT GOING TO BE A PUBLIC OR PRIVATE COMPANY? WHAT ARE YOU FEELING? WITH THE CONVERSATIONS WITH THE CHIEF EXECUTIVES TODAY, HOW ARE THEY THINKING ABOUT IT? >>> I HAD A CONVERSATION ABOUT THE ENERGY TRANSITION AND HE TOLD ME IT NEEDS TIME AND CAPITAL. THE REALITY IF YOU LOOK AT THE LAST 10 YEARS IN EUROPE, WE HAD

21:02 MULTIPLE PUBLIC TO PRIVATE BECAUSE OUR INVESTMENT HORIZON IS LONG DATED. WE ARE THE SECOND BIGGEST INVESTOR IN THE WORLD. ABOUT 1/3 OF THAT IS IN OPEN ENDED STRUCTURES WHERE WE INVEST IN COMPANIES, WE DON’T HAVE TO SELL THEM. WE SPEND A LOT OF INVESTMENTS AND YOU NEED TO SEE – FRANCINE: YOU HAVE ALL OF THESE BIG MASSIVE HYPER SCALERS, OPENAI MAYBE EXPOSING AN IPO OR GOING

21:33 IPO. DOES THAT TIP THE BALANCE ONE WAY OR THE OTHER? >> THOSE COMPANIES WILL CAPITALIZE – IN THE SHORT-TERM. FRANCINE: WHAT DO YOU SEE CHANGING THIS FOR KKR AND YOUR INDUSTRY IN THE NEXT 12 MONTHS GIVEN THE CAP THAT WILL THAT IS NEEDED AND THE CHASING OF DEALS? >> I THINK THE ABILITY TO DELIVER. AI INFRASTRUCTURE, REALLY WHAT MATTERS. NOT SO MUCH ABOUT THE ECONOMY. IT IS THE ABILITY TO BRING

22:07 THOSE PROJECTS ONLINE. WHICH IS WHY I THINK WE ARE EXTREMELY WELL POSITIONED. YOU NEED TO UNDERSTAND THE DIGITAL SIDE OF THINGS. IF YOU CAN BRING IT TOGETHER, THIS WILL BE THE – FRANCINE: THANK YOU SO MUCH FOR JOINING US. KKR’S CO-HEAD OF EUROPEAN INFRASTRUCTURE. VERY QUICKLY, WE HAVE SOME DATA POINTS TO WATCH OUT FOR LATER TODAY AND LATER IN THE WEEK. I’M LOOKING AT STOCKS PRETTY MUCH RISING IN TODAY’S TRADE SESSION. AGAIN, U.S. STOCKS TREASURIES ARE RISEING WITH THE FEDERAL RESERVE

22:42 FAVORED INFLATION GAUGE LATER. WE HAVE TWO STORIES. ONE IS INFLATION TIED TO ENERGY PRICES AND THE OTHER IS AI. COMING UP, OUR EXCLUSIVE CONVERSATION WITH THE CHIEF EXECUTIVE AS THE ITALIAN BANK FENDS OFF A TAKEOVER BID. HE IS IN LONDON. HE WILL JOIN US NEXT.

23:15 FRANCINE: GOOD MORNING. WELCOME TO “THE PULSE.” I’M FRANCINE LACQUA HERE IN LONDON. PRESIDENT TRUMP SIGNS AN AI SAFETY AGREEMENT AS OPENAI TARGETS .4 TRILLION VALUATION. BONDS A STUDY AFTER A BRUISING SELLOFF AS THE TRADER IS ALWAYS INFLATION DATA. THE U.K. PRIME MINISTER SAYS HE COULD CAMPAIGN TO TAKE BRITAIN BACK INTO THE EUROPEAN UNION AT THE NEXT GENERAL ELECTION.

23:47 WE HAVE MORE ON THE COUNTRY’S DEBATE ON ITS RELATIONSHIP WITH THE BLAC. ITALIAN BANKING. MONTE DEI PASCHI IS MAKING A $40 BILLION PLAY FOR TWO ITALIAN RIVALS, PROPOSING SEPARATE ALL SHARE BETS FOR BANCO BPM AND BANCO GENERALI AS MONTE PASCHI LOOKS TO FEND OFF A TAKEOVER PROPOSAL FROM INTESA SAO PAULO. I AM PLEASED TO BE JOINED BY LUIGI LOVAGLIO, THE CHIEF EXECUTIVE OF BANCO MONTE DEI PASCHI.

24:18 YOU HAVE CERTAINLY SURPRISED TO THE MARKETS WITH ONE OF YOUR BOLDEST MOVES YET. YOU HAVE BEEN BOLD IN THE PAST. YOU HAVE OFFERED AT THE SAME TIME TWO BIDS FOR, WELL, MONTE DEI PASCHI IS IT SELF UNDER ATTACK. WHY DO YOU THINK SHAREHOLDERS SHOULD CONSIDER YOUR PLAN BETTER THAN THE INTESA PLAN? LUIGI: WE ARE BUILDING ITALIAN CHAMPIONS ACROSS BANKING, WEALTH, AND ADVISORY.

24:48 WE LED TO SCALE, NETWORK AND BANCO GENERALI WILL SUPPORT IN BRINGING THE HIGHER LEVEL OUR H UB IN WEALTH MANAGEMENT. I THINK IT IS IMPORTANT TO SHOW OUR SHAREHOLDER THE GLOBAL ARCHITECTURE AND BY BUILDING THIS PROJECT, WE REALLY BELIEVE THAT STRATEGICALLY, FINANCIALLY, IT IS A VERY COMPELLING PROJECT. FRANCINE: IT IS VERY BOLD. LUIGI:

25:19 AS I SAID, THE COMPARISON PICTURE IS BETTER EXPLAINING WHERE WE WANT TO GO STRATEGICALLY. FRANCINE: OCTOBER 29 IS THE FIRST MAJOR HURDLE, RIGHT? THIS IS BASICALLY WHEN SHAREHOLDERS MEAN THAT YOU NEED 67 SUPPORT, 67% OF SHAREHOLDERS SUPPORTING YOU. WHY WOULD SHAREHOLDERS BACK THE TWO OFFERS AND HOW CONFIDENT ARE YOU THAT YOU WILL GET 67%? LUIGI: LET ME JUST SAY, TO BE VERY CLEAR, OCTOBER 29 IS NOT THE

25:51 REFERENDUM ON INTENSA TRANSACTION AND MONTE DEI PASCHI TRANSACTION. IT IS AN OPPORTUNITY FOR OUR SHAREHOLDERS TO KEEP AVAILABLE AN ALTERNATIVE TO INTENSA’S OFFER, AND ABLE TO PUT COMPETITIVE PRESSURE ON PRICE AND DO WHAT WE BELIEVE IS OUR GOAL, TO GENERATE THE MOST VALUE FOR SHAREHOLDERS. FRANCINE: YOU BASICALLY ARE TELLING SHAREHOLDERS, VOTE THIS THROUGH SO I CAN FIGHT BACK. DO YOU THINK YOU WILL BE ABLE TO FIGHT BACK?

26:21 DO YOU HAVE SHAREHOLDER SUPPORT? LUIGI: I THINK SHAREHOLDERS ARE CAPABLE TO RECOGNIZE THE VALUE OF OUR OFFER. WE ARE PROVIDING VALUE TODAY THROUGH EXTRAORDINARY DIVIDEND. WE ARE PROVIDING VALUE TOMORROW BECAUSE THE VALUE CREATION IS QUITE SIGNIFICANT. WE HAVE A POSITIVE TRACK RECORD AND I WANT YOU TO REMEMBER WE GOT THE COMPANY WITH A VALUE OF 300 MILLION, TODAY WE HAVE 56 BILLION PLUS. AND WE ARE IN AN EXCITING PROJECT IN FRONT OF US WHICH WILL BRING US TO A VERY HIGH LEVEL IN THE COMPETITIVE MARKET.

26:54 FRANCINE: LONG-TERM INSTITUTIONAL INVESTORS ARE EXTREMELY IMPORTANT TO YOU. HAVE YOU SPOKEN TO THEM? WILL YOU HAVE THEIR BACKING? LUIGI: I REALLY TRUST THAT ERROR SHAREHOLDERS WILL RECOGNIZE THE VALUE OF OUR PROJECT – OUR SHAREHOLDERS WILL RECOGNIZE THE VALUE OF A PROJECT. THESE ARE PRINCIPLES. I BELIEVE THAT WE ARE SPEAKING THE SAME LANGUAGE AND THEY WILL RECOGNIZE THE VALUE OF OUR PROJECT. FRANCINE: HAVE THEY TOLD YOU THAT? LUIGI: I AM CONFIDENT THE VALUE OF OUR

27:29 PROJECT WILL BE RECOGNIZED BY THEM. FRANCINE: DAUPHINE HAS 17% – DELPHINE HAS 17%. I THINK BOTH CAN RECOGNIZE THE VALUE. WE HAVE TO SEE HOW THE SITUATION WILL EVOLVE. WHAT IS THE ITALIAN GOVERNMENT TELLING YOU IN ALL OF THIS? LUIGI: I THINK THE GOVERNMENT IS OPENLY SAYING THEY WILL HAVE A NEUTRAL POSITION. NEUTRAL POSITION MEANS, ANYWAY, THAT KEEPING THE POSSIBILITY TO

28:00 HAVE A COMPETITIVE PRESSURE ON PRICE AND TO INCREASE THE VALUE OF THE STAKE IS SOMETHING THAT IS, IN SOME WAY, CONSISTENT WITH THE STATEMENT. WHAT IS IMPORTANT, THAT I BELIEVE THEY DO NOT WANT TO INTERFERE WITH THE MARKET. FRANCINE: LET’S SAY YOU SECURE 67% OF THE VOTE, WHICH MEANS YOU CAN GO AFTER THESE BANKS. THEN YOU HAVE TO SPEAK TO TWO CHRIS OR SHAREHOLDERS, GENERALI FOR BANCO GENERALI AND CREDIT AGRICOLE FOR BANCO PPM.

28:32 HAVE YOU SPOKEN TO EITHER OF THEM? LUIGI: SHAREHOLDERS CAN GIVE US THE PERMISSION TO START DISCUSSING WITH THEM AND TO BETTER SHAPE AND FIGURE OUT THE DETAIL OF THE PROJECT. I STRONGLY BELIEVE THAT CREDIT AGRICOLE IS A VERY RESPECTABLE INSTITUTION. THEY HAVE ALWAYS BEHAVIOR IN WHAT THEY DECIDED TO DO AND I’M CONFIDENT THEY OFFERED TO TAKE PART IN A PROJECT THAT IS VERY VALUABLE, SIGNIFICANTLY VALUE CREATION, WILL HAVE ALSO THEIR SUPPORT. GENERALI, THEY WANT TO MAKE

29:06 BANK ASSURANCE, THEY ARE THE BEST NETWORKING ITALY, POWERFUL NETWORK SO IT IS A NICE COMBINATION OF THE PLATFORMS. FRANCINE: FOR GENERALI, I THINK YOU HAVE ALREADY SIGNED TO SOME AGREEMENT TO EXPAND YOUR OPERATIONS, RIGHT? WHAT DOES THAT LOOK LIKE? LUIGI: GENERALI IS REALLY OFFERING US A FANTASTIC OPPORTUNITY BECAUSE WE CAN HAVE TWO PLATFORMS. IN OUR CASE, IN OUR NETWORK, TWO DISTRIBUTE – TO DISTRIBUTE A PROJECT OF GENERALI AND TO THE CUSTOMER OF GENERALI TO DISTRIBUTE BANKING PRODUCT. IT IS A FANTASTIC AND GREAT

29:40 OPPORTUNITY TO IMPROVE OUR CAPABILITY TO GENERATE REVENUES AND ALSO TO GROW SIGNIFICANTLY IN THE RENUMERATION FOR SHAREHOLDERS. FRANCINE: HOW BROAD COULD THE PARTNERSHIP BE? AT SOME POINT, COULD YOU ENVISAGE THAT GENERALI REPLACE A XA? LUIGI: THINK IT IS IMPORTANT TO FIGURE OUT WHAT COULD BE THE NEXT PARTNERSHIP THAT WE COULD IMPLEMENT AND GENERAL MEETING SHAREHOLDERS IS IMPORTANT TO ASK IN ORDER TO BETTER DEFINE WHAT WILL BE THE POTENTIAL PARTNERSHIP.

30:13 WE NEED TO HAVE THE PERMISSION. IT IS AN IMPORTANT STEP TO MAKE AVAILABLE ALL THE OPPORTUNITIES ON THE FIELD. FRANCINE: YOU MUST HAVE A BLUEPRINT OF VALUE SEE THIS COOPERATION FOR GENERALI. DO YOU HAVE IT AND YOU HAVEN’T SPOKEN ABOUT IT YET? LUIGI: WE WANT TO HAVE COOPERATION, BANK ASSURANCE, ASSET MANAGEMENT, NO LIFE INSURANCE. I THINK GENERALI IS A FANTASTIC OPPORTUNITY FOR US. AT THE SAME TIME, WE ARE FOR GENERALI, AS I SAID, A GREAT NETWORK TO DISTRIBUTE THEIR PRODUCTS. FRANCINE:

30:47 FOR CREDIT AGRICOLE, HE COULD BE A POTENTIAL PARTNER FOR THIS PARTNERSHIP THAT COULD GROW AND BECOME BIGGER. LUIGI: NORMALLY, WE HAVE DISCUSSION AMONG BANKERS, RIGHT? NOT NECESSARILY, WE HAD NOT NECESSARILY ON THE TOPIC OF OUR OFFER. AND I REALLY BELIEVE THAT CREDIT AGRICOLE WILL RECOGNIZE THE VALUE OF OUR PROJECT. FRANCINE: COULD THEY STILL BE A SHAREHOLDER IN THE NEW PROJECT? HAVE YOU DISCUSSED THE DETAILS YET? LUIGI: WE DID NOT DISCUSS AT ALL. MY UNDERSTANDING, THE PRINCIPLE, WE ARE REPLYING TO

31:20 THE PROJECT AND SOMETHING THAT IS VERY FAMILIAR WITH CREDIT AGRICOLE. FRANCINE: TALK TO ME ABOUT UNICREDIT. BLOOMBERG HAS REPORTED THAT UNICREDIT APPROACHED BOTH INTENSA AND CREDIT AGRICOLE TO SIGNAL ITS WILLINGNESS TO BUY BRANCHES. LUIGI: I THINK IT IS AN OPTION. IT IS AN OPTION. BUT I BELIEVE UNICREDIT HAS A STRATEGY NOW WAIT AND SEE, AND MAYBE AFTER A GENERAL MEETING OF SHAREHOLDERS, SITUATION CAN EVOLVE. FRANCINE: HAVE YOU TALKED ABOUT POSSIBLE DISPOSALS? LUIGI: NOT YET.

31:53 FRANCINE: DO YOU THINK BANK INTESA COULD MAKE A MOVE BEFORE OCTOBER 29? LUIGI: THERE ARE RUMORS ON THE MARKET ABOUT THAT. FOR ME, IT IS DIFFICULT THAT THEY CAN DO. WHAT IS OBVIOUS, THEY SHOULD REVIEW THE PRICE BECAUSE THE CURRENT PRICE IS NOT REPRESENTING THE VALUE OF OUR COMPANY. FRANCINE: WHAT DO YOU SEE THE MAIN VULNERABILITY IN INTESA’S? PLANT IS IT JUST PRESS? LUIGI: I THINK IT IS IMPORTANT TO HAVE

32:26 IN MIND THAT WE ARE WORKING TO HAVE THE BEST VALUE FOR A SHAREHOLDER. CLEARLY, WE HAVE TO CONSIDER THAT THE CAP OF MONTE DEI PASCHI IS A CRITICAL ISSUE BECAUSE WE ARE DECREASING THE COMPETITION AND THE SUPPORT WE CAN HAVE TWO ARE TERRITORIES. THEY ARE QUITE CRUCIAL FOR THE ECONOMY, ITALIAN ECONOMY. FRANCINE: HOW BIG DO YOU THINK THE COMPETITION ISSUES ARE? LUIGI: I THINK COMPETITION SHOULD BE IN SOME WAY IMPROVING BECAUSE IF YOU ARE A NATIONAL CHAMPION, YOU SHOULD STRENGTHEN COMPETITION.

32:58 OTHERWISE, AS I WAS SAYING, ONE OF MY PRESENTATIONS, THAT THE CROWN CAN BE LARGER BUT THE KINGDOM CAN BE SMALLER. FRANCINE: I LIKE THE ANALOGY. WHAT HAPPENS IF YOU DO NOT GET 67% OF SHAREHOLDER SUPPORT ON OCTOBER 29? IS THERE A PLAN B TO KEEP MONTE DEI PASCHI INDEPENDENT? OR IS IT A CLEAR PATH FOR INTE SA? LUIGI: IT WILL BE A MESSAGE THAT OUR SHAREHOLDERS WILL LIKE THE PROJECT OF INTESA AND WANT TO DELIVER AND NOT TO HAVE AN OPPORTUNITY AND

33:30 POSSIBILITY TO PUT A COMPETITIVE PRESSURE ON PRICE. HONESTLY, AT THEIR CURRENT STAGE, WE DON’T HAVE PLAN B. AS USUAL, – CAN COME WHEN YOU NEED TO DO SOMETHING IMPORTANT FOR YOUR SHAREHOLDERS. FRANCINE: YOU HAVE A MONTH. ARE YOU TELLING ME THERE WILL BE A PLAN B? LUIGI: I AM NOT SAYING THERE IS A PLAN B. OUR DUTY IS TO FIND ALWAYS THE BEST SOLUTION FOR OUR SHAREHOLDERS AND WE CANNOT GIVE UP. NOT WHEN YOU THINK ABOUT SOMETHING THAT IS IMPORTANT FOR YOU, YOU CAN FIND SOLUTION EVEN

34:04 WHEN YOU BELIEVE – WHEN YOU DON’T BELIEVE IT CAN COME. FRANCINE: IS IT A RACE AGAINST TIME? THERE IS A TWO MONTH CAP FROM WHEN INTESA STARTED. LUIGI: IT IS A MATTER OF TIME. WHAT IS IMPORTANT FOR MY SHAREHOLDERS IS TO BELIEVE THAT AFTER GENERAL MEETING OF SHAREHOLDERS IS THAT THEY VOTE FOR, WE WILL HAVE MORE TIME TO BETTER SPEND OUR PROJECT AND BETTER RECONSIDER THE PROJECT OF INTESA BECAUSE I THINK IT IS IMPORTANT TO COMPARE, HAVING IN

34:36 MIND THAT TODAY THE PROJECT OF INTESA, THERE IS ALSO SOME UNCERTAINTY ABOUT THE PERIMETER AND THE PERIMETER ARE IMPORTANT IN ORDER TO DEFINE THE SYNERGIES, SO I THINK IT IS IMPORTANT FOR A SHAREHOLDER TO HAVE ON THE TABLE ALL FACTS TO DECIDE IN AN APPROPRIATE WAY BANK. IN ORDER TO HAVE THAT, WE HAVE TO HAVE A POSITIVE OUTCOME TO GENERAL MEETING OF SHAREHOLDERS. I AM REPEATING, IT IS NOT DECISION ABOUT INTESA, MONTE DEI PASCHI, IT IS TO GIVE THE OPPORTUNITY TO ASK, TO EXPLORE ADDITIONALLY THE PROJECT AND THEN SHAREHOLDER WILL DECIDE WHAT IS

35:09 THE BEST DECISION FOR THEM. SO DECISION ABOUT INTESA PROJECT OR MONTE DEI PASCHI PROJECT WILL COME NOVEMBER OR DECEMBER. NOW IT IS JUST TO OPEN THE DOOR AND TO MAKE US PLAYING THE PHOTO GAME. FRANCINE: MANY PEOPLE UNDERESTIMATE YOU. . YOU SUCCEEDED IN THEIR FIGHT AGAINST MEDIOBANCA WHEN A A LOT OF PEOPLE DOUBT THAT WAS IMPOSSIBLE. WHAT ARE INVESTORS, MARKETS AND I GUESS SHAREHOLDERS UNDERESTIMATING ABOUT YOU TODAY? LUIGI: WE MET ALREADY SEVERAL INVESTORS. THEY RECOGNIZED THE VALUE OF

35:40 OUR PROJECT. THEY ARE ASKING QUESTION ABOUT TIMING. I AM CONFIDENT THAT THE MORE INVESTORS WE ARE MEETING, THE MORE I BELIEVE THEY WILL UNDERSTAND THE VALUE OF OUR PROJECT AND MAKING US PLAYING OUR ROLE, EVEN AFTER GENERAL MEETING OF SHAREHOLDERS. FRANCINE: LUIGI LOVAGLIO, THANK YOU SO MUCH FOR JOINING US TODAY. THAT WAS THE CHIEF EXECUTIVE OF BANCO MONTE DEI PASCHI. FRENCH INFLATION HAS ACCELERATED TO THE FASTEST PACE IN MORE THAN TWO YEARS,

36:13 MAINTAINING PRESSURE ON THE ECB TO CONTINUE RAISING INTEREST RATES. WE ARE JOINED BY OUR WESTERN EUROPE ECONOMY EDITOR. . A SLEW OF EUROPEAN DATA TODAY, FRANCE FIRST. WHAT DOES FASTER INFLATION MEAN AHEAD OF THE BUDGET DEBATE? >> THAT IS OBVIOUSLY BAD NEWS FOR FRENCH POLITICIANS. WE KNOW THIS IS A VERY DIFFICULT BUDGET ANYWAY. WE JUST SAW THE SPREAD, THE BOND YIELDS BETWEEN FRANCE AND GERMANY HIT A NEW HIGH.

36:44 OVERALL, FRANCE KNOWS IT HAS MISSED ITS BUDGET GOALS FOR THIS YEAR, IT WANTS TO MEET THOSE GOALS FOR NEXT YEAR. IT IS AN ELECTION YEAR AND IT WANTS TO CURB THE HURT FOR HOUSEHOLDS, THAT THEY KNOW THAT THEY NEED HUGE BUDGET EFFORT TO GET THAT THERE. IF THE INFLATION AT THE SAME TIME IS VERY HIGH, IT WILL BE VERY DIFFICULT FOR FRENCH BUDGET TO DO THAT, FOR FRENCH POLITICIANS TO DO THAT. OVERALL, IF WE LOOK AT THE FRENCH NUMBER AND IF WE COMPARED WITH YESTERDAY’S SPAIN NUMBER, FRENCH NUMBER CAME IN AT 3.4, SPAIN NUMBER WAS AT 5%.

37:18 FRANCE, INFLATION IS A BIT MORE MUTED IF YOU CAN CALL 3.4% MUTED. FRANCINE: WE GET GERMAN DATA LATER. WHAT ARE WE LOOKING FOR? >> GERMANY WE SEE AN UPTICK. WE GOT REGIONAL DATA, GERMANY IS A FEDERALIST STATE SO WE GET ALL THE REGIONAL NUMBERS WHICH IS AT THE TOP OF THE HOUR. SO ABOUT 40 MINUTES AGO. WE WILL GET THE OVERALL NUMBER AT 1:00 P.M. LONDON TIME. WE SEE AN UPTICK THEY’RE NOT QUITE AS INTENSE AS FRANCE.

37:49 WE HAD AN UPTICK IN SPAIN AND UP SIZED PRICE IN FRANCE, GERMANY COULD BE JOINING THOSE NUMBERS. REGIONAL DATA THERE WILL BE THIS INCREASE AND WE GET THE OVERALL EURO AREA NUMBER ON FRIDAY AND THAT SHOULD SEE A MASSIVE INCREASE INFLATION IN AUGUST WAS 3.2. THAT DOESN’T GET FULLY FACTORED IN THOSE STRONGER PRINTS WE SAW IN SPAIN AND FRANCE SO OVERALL NUMBERS FOR THE ECB TO LOOK AT.

38:20 FRANCINE: THANK YOU SO MUCH ZOE. COMING UP, OF THE U CAPE RAISES THE POSSIBILITY OF REJOINING THE EU. FULL DETAILS NEXT AND THIS IS BLOOMBERG. ♪

39:27 >> OUR CURRENT DEPLOYMENT AS I BELIEVE IS NOT A PERMANENT ONE BUT A ROTATIONAL ONE. THEY ARE SENDING APPROXIMATELY THE SAME NUMBER FROM WHAT WE ARE RECEIVING THAT WAS USED TO BE BEFORE AND WE ARE HAPPY ABOUT IT. EVENTUALLY TO HAVE THE AMERICAN TROOPS WITH A PERMANENT STATION AND WE ARE READY TO PAY THE BILL IF THAT IS THE CASE. FRANCINE: THAT WAS THE LITHUANIAN PRIME

39:58 MINISTER TELLING BLOOMBERG HIS COUNTRY IS READY TO PAY TO PERMANENTLY HOST U.S. TROOPS. POLITICS AND FOOTBALL DOMINATING THE NEWS AGENDA IN THE U.K.. IN A MOMENT WE WILL DISCUSS THE FINDINGS AGAINST MANCHESTER CITY CENTRE BUT FIRST THE PRIME MINISTER HAS SAID THE U.K. COULD REJOIN THE EUROPEAN UNION AFTER THE NEXT GENERAL ELECTION. HIS FIRST SPEECH AS PARTY LEADER BURNHAM SAID BREXIT HAD DONE MORE HARM THAN GOOD. >> DEINDUSTRIALIZATION DEREGULATION, PRIVATIZATION

40:31 AUSTERITY, BREXIT AND WHAT HASN’T GIVEN US? A COUNTRY RUN NOT IN THE PUBLIC INTEREST WITH POWER HELD IN TOO FEW HANDS AND SO MANY PLACE LEFT TO DRIFT. I AM READY TO DO THINGS MY PREDECESSORS WOULDN’T. I WILL MAKE A BREAK WITH THE DIRECTION OF THE PAST 40 YEARS AND PUT BRITAIN ON A NEW PATH BUILDING NEW ECONOMY AND A NEW POLITICS. THAT IS THE CASE I MAKE FOR YOU TODAY.

41:05 FRANCINE: WE ARE JOINED BY CAROLINE WHO WAS AT THE LABOUR PARTY CONFERENCE. I THOUGHT THIS WOULD NEVER BE REALLY. IT WAS DONE AND DUSTED WE HAVE THE REFERENDUM BUT WHAT DID HE SAY ABOUT BREXIT? >> HE SAID IN A FURTHER INTERVIEW AFTER THAT SPEECH THAT HE IS NOT CLOSING THE DOOR EFFECTIVELY TO REJOINING THE EUROPEAN UNION AND THAT THE CUSTOMS UNION IS ALSO POTENTIALLY BACK ON THE TABLE. THE RED LINES OF THE LABOUR

41:37 PARTY DO SEEM TO BE SWEPT ASIDE IN THE 2020 FOUR LABOUR PARTY MANIFESTO UNDER THE PREVIOUS LEADER REJOINING THE EU HADN’T BEEN RULED OUT. BUT THERE YOU COULD HEAR THE PRIME MINISTER AND HE CAME TO THAT LABOUR PARTY CONFERENCE IS A VETERAN LABOUR PARTY POLITICIAN EVEN IF HE WAS IN WESTMINSTER I FEEL A LOT OF PENT-UP IDEAS AND POLICY. WE WERE PROMISED A BIG SPEECH BUT IT WAS AN ENORMOUS ONE IN TERMS OF POLICY NOT JUST ABOUT REJOINING THE EU BUT ABOUT POTENTIALLY TAKING CERTAIN COMPANIES INTO PUBLIC

42:12 OWNERSHIP, BUILDING HOMES MAY BE CHANGING THE WAY THAT WE VOTE IN TERMS OF ELECTIONS IN THE U.K. KEEPING THE UNITED KINGDOM UNITED AND ALLOWING SCOTLAND GOOD THERE WAS ABSOLUTELY ENORMOUS AMOUNTS OF POLICY HITS. FRANCINE: WE HAD SOMEONE FROM PRIVATE EQUITY SAYING LET’S SEE IF THAT HAPPENS. IT JUST FELT LIKE A RADICAL VISION. AS OF THE RIGHT WAY TO PUT IT? CAROLINE: RADICAL AND EMOTIONAL WITH THE TWO THINGS I TOOK AWAY FROM THAT SPEECH. THE PRIME MINISTER TALKED ABOUT THE DEATH OF HIS FATHER THAT HE WAS STILL GRIEVING AND YOU REALLY USE THAT AS A WAY TO SHOW US HIS POLITICAL STORY.

42:46 THIS IS RADICAL. WE HAVE A BUDGET COMING UP IN OCTOBER DOES IT SOLVE ANY OF THE ISSUES OF HISTORICALLY HIGH GOVERNMENT SPENDING. AND ALL OF THE PRESSURES THAT BRITAIN FACES IN TERMS OF HIGH ENERGY COSTS COMING BUT HE ALSO WANTS TO PUT THESE QUESTIONS ABOUT REJOINING THE EU ABOUT MAYBE REPRESENTATION OR CHANGES TO THE FIRST PAST THE POST ELECTORAL SYSTEM AND WANTS TO PUT THAT ON THE NEXT GENERAL ELECTION THAT’S NOT TILL 2029. FRANCINE:

43:24 OCTOBER 28 WE HAVE TATTOOED, IS A TAX RISES, NEEDS TO FIND MONEY TO FUND THAT? CAROLINE: BOND MARKETS DIDN’T MOVE WHEN THE PRIME MINISTER SPOKE YESTERDAY. GETTING BACK AT 8:00 WITH A LOT OF MINISTERS OF THE TRADE ON THE WAY BACK DOWN TO LONDON. LOOK OCTOBER THE 28TH BOND MARKETS ARE FOCUSED ON THIS. IT’S ABOUT BOTH THE HEADROOM HOW MUCH LEFT OVER AND KNOW

43:54 MUCH LEEWAY THE GOVERNMENT ALLOWS THEM TAX VERSUS SPENDING. CAN GO AS LOW AS 10 NOR CAN IT REALLY GO AS HIGH AS 24 WHICH IS WHAT RACHEL REEVES DELIVERED IN HER SECOND BUDGET. IT LOOKS LIKE HE IS BOXED IN BUT THEN BEYOND THAT WHAT TO BOND MARKETS MAKE OF THE CREDIBILITY JOHN HEALEY HAS TO DELIVER THAT BUDGET. WHO’S GOING TO BE WRITING IT THAT’S THE QUESTION AS WELL. FRANCINE: CAROLINE THANK YOU SO MUCH.

44:28 THE PREMIER LEAGUE SAYS MANCHESTER CITY ARTIFICIALLY BOOSTED ITS FINANCIAL RESULTS BY MORE THAN 900 MILLION POUNDS. FOUND GUILTY OF ALL CHARGES RELATED TO SERIOUS BREACHES OF FINANCIAL RULES OVER A PERIOD OF NINE SEASONS. THIS IS ALL THAT WE’VE BEEN TALKING ABOUT AT THE DINNER TABLE, WHAT EXACTLY HAPPENS, WHY HAVE THEY BROKEN THESE RULES AND HAS THIS HAPPENED BEFORE? >> FROM THE PRIME MINISTER OF THE FOOTBALL COMMENTATORS IT’S A BIG TOPIC IT’S WHY YOU’VE HEARD THE CEO OF THE PREMIER

45:01 LEAGUE SAYING IF ONE OF THE MOST IMPORTANT DECISIONS IN PREMIER LEAGUE HISTORY. WHEN IT LOOKS – COMES DOWN TO IT MANCHESTER CITY HAS SPENT TOO MUCH MONEY SO THE GROUP OF RULES THAT THEY ARE ACCUSED OF HAVING BEEN BROKEN ARE THE FINANCIAL FAIRPLAY RULES AND THE PROFIT AND SUSTAINABILITY RULES. SO THEY HAVE RULES THAT SAY YOU HAVE TO ONLY SPEND LESS THAN YOU GENERATE IN REVENUES SO IF YOU’RE GOING TO BUY A WHOLE LOAD OF EXPECTED PLAYERS OR YOU CAN BUILD A HUGE STADIUM YOU HAVE TO BE MAKING MONEY THROUGH

45:34 SPONSORSHIP DEALS AND THROUGH TICKET SALES TO PAY FOR THAT AND ACCORDING TO THE PREMIER LEAGUE MANCHESTER SAY HAVEN’T TO THE TUNE OF 900 MILLION POUNDS. YOU MENTIONED IF THIS IS HAPPENED BEFORE. IT HAS BUT NOT TO THE STANK – THE EXTENT WE’VE SEEN MOST RECENTLY THE CASE OF CHELSEA. THEY ONLY OVERSPEND BY 47 MILLION POUNDS. AND CRUCIALLY THEY ALSO SELF-REPORTED IT WAS UNDER PREVIOUS OWNERS. WE STILL OF THE SAME OWNERS IN CHARGE. THEY HAVE NOT SELF-REPORTED AND

46:05 CRUCIALLY THEY ALSO BEEN FOUND TO A FRUSTRATED THE ATTEMPTS OF THE PREMIER LEAGUE TO INVESTIGATE THEM SO RADICALLY DIFFERENT CASES BUT EVEN IN THE CASE OF CHELSEA THEY WERE PUNISHED SO WE HAVE STILL YET TO SEE WHAT THE PUNISHMENT MAY BE. FRANCINE: THIS TALK ABOUT RELEGATION AND COMPENSATION TO OTHER CLUBS. DO WE KNOW ANYMORE? TIWA: THERE WILL BE AN INDEPENDENT RULING. BUT THERE IS SUCH A STRENGTH OF FEELING ABOUT THIS. AND BECAUSE OF THE PERIOD IT

46:39 HAPPENED, DURING THAT TIME MANCHESTER CITY WINNING 20 TROPHIES OF THE LAST 10 YEARS IT’S VERY SIGNIFICANT TO FANS CALLING FOR REGULAR – RELEGATION. SOME OF THE CLUBS ARE DECIDING WHETHER OR NOT TO PURSUE COLLECTIVE ACTION IN TERMS OF COMPENSATION CLUBS LIKE ARSENAL FOR EXAMPLE SPEAKING ABOUT NOT BEING ABLE TO AFFORD TO KEEP CERTAIN PLAYERS AFTER ARSENAL BUILT THAT NEW STADIUM. IT DOES LOOK LIKE THE RULES WERE DIFFERENT FOR EVERYONE ELSE. WE SHOULD MENTION MANCHESTER CITY MAINTAINING THEIR INNOCENCE SAYING THEY WILL

47:10 CHALLENGE THIS DECISION FROM THE PREMIER LEAGUE. IN TERMS OF WHAT COULD HAPPEN WE COULD SEE A POINTS DEDUCTION THAT HAPPENED TO THE LIKES OF THE PRIME MINISTER’S FAVORITE TEAM THEY LOST 10 POINTS AND WAS LATER ADJUSTED TO SIX. THEY HAD A SUSPENDED PRICE REDUCTION OF SIX BUT OF COURSE AS I MENTIONED THIS IS A MUCH MORE DEVASTATING CASE AND PERHAPS WE WILL SEE A BIGGER FINANCIAL AND POINTS REDUCTION

47:42 AS WELL. FRANCINE: THANK YOU SO MUCH FOR JOINING US FOR THIS MAN CITY STORY THAT HAS BEEN AN OBSESSION REALLY FOR NOT ONLY PREMIER LEAGUE WATCHERS BUT EVERYONE IN THE U.K.. THIS IS A PICTURE ACROSS THE BOARD FOR WHAT WE ARE SEEING IN THE MARKETS. LOOKING AT TREASURIES AND U.S. STOCKS. KEY THINGS. THIS IS BLOOMBERG.