German Manufacturing Boost, French Businesses Hit By Heatwave | The Pulse 8/21/2026

Watch on YouTube ↗  |  August 21, 2026 at 11:33  |  48:21  |  Bloomberg Markets
Speakers
Marina Zavolock — Chief European Equity Strategist, Morgan Stanley
Modupe Adegbembo — Founder, CEO, Kora
Majid Jafar — CEO, Crescent Petroleum
Neil Kaplan — Bloomberg Senior Strategist
Zoe — Bloomberg Western Europe Editor
Abeer Abu Omar — Reporter, Bloomberg London

Summary

The episode covers August euro-area PMIs showing resilient German manufacturing but French weakness, with Morgan Stanley's Marina Zavolock arguing European equities remain supported and selective sectors benefit from euro strength. Guests also discuss U.S. Treasury credibility, Anthropic IPO expectations, Samsung shareholder returns, and the Middle East conflict's downstream energy impact. Majid Jafar of Crescent Petroleum warns diesel, jet fuel, and LNG bottlenecks may worsen into winter.

  • Eurozone composite PMI rises to 52.1, German manufacturing best in over four years, France weakens on heatwave.
  • ECB expected to hike in September but likely on hold after; BoE viewed on hold before eventual cut.
  • Marina Zavolock says euro-area PMIs are sentiment not earnings; European margins and earnings strong.
  • She sees Europe as diversified relative safe haven if AI bubble bursts; favors mining, banks, energy on euro strength.
  • Neil Kaplan reports Anthropic aims for record IPO near SpaceX size; Samsung may return significant cash.
  • Majid Jafar says oil-suppressing factors are fading and downstream diesel/jet/LNG bottlenecks are stickier.
Ideas
Marina Zavolock Chief European Equity Strategist, Morgan Stanley 4:52
European earnings growth margins beating inflation.
European equities are so globally driven that euro-area PMIs mainly affect sentiment rather than earnings. Most revenues are generated abroad; strong German manufacturing follows the global manufacturing cycle. In a moderate-inflation, no-recession environment, companies with high B2B exposure are passing on price increases and margin beats are on the upside, supporting 18% European earnings growth.
VGK HIGH
Marina Zavolock Chief European Equity Strategist, Morgan Stanley 8:38
Hedge FX favors US; unhedged favors Europe.
A 5% rally in EUR/USD lowers annualized European earnings growth by about two percentage points, mostly from translation not competitiveness. For investors, hedging FX makes U.S. equities more attractive, while unhedged European equities come out stronger under euro strength.
EUR/USD MED
Marina Zavolock Chief European Equity Strategist, Morgan Stanley 10:54
European banks benefit from steeper yields.
Within European equities under euro strength, investors need to be selective: mining, banks, and energy benefit from euro strength, while sectors with very high dollar exposure will see negative earnings translation.
EUFN IEV MED
Modupe Adegbembo Founder, CEO, Kora 13:29
Food prices face underappreciated inflation pressure.
Drought conditions across England, Wales and Europe, El Niño effects, and Strait of Hormuz closures/disruptions all point to quite large food price pressure in 2027; food inflation risk remains underappreciated by markets.
DBA MED
Neil Kaplan Bloomberg Senior Strategist 21:42
Samsung returning large cash to shareholders.
Samsung is returning about 50% of free cash flow, needs to fund a special bonus agreed with unions, and is under pressure to return significant cash to shareholders at a time when other AI-related companies have negative free cash flow.
005930.KS MED
Majid Jafar CEO, Crescent Petroleum 30:50
Refined products and gas squeeze higher.
The factors that suppressed oil are running out: U.S. supply response, Chinese demand suppression/stock releases, and talk of a deal. The bottleneck is moving downstream and is stickier, with record diesel crack spreads and jet fuel near $200, while oil products and LNG are not getting through like crude, spiking Asian gas prices; this could get a lot worse into winter.
Asian LNG BNO DIESEL CRAK UNG HIGH
Up Next
34:52
Won Strength Created by SamjeonNix Movement, Will the Exchange Rate Go Even Lower? | Hong Seonae, Kim Junsong, Kim JunsongTV CEO [Yeouido Insight]
3PRO TV (삼프로TV) · Aug 21
25:26
[#RealMarketConditions] Why are they dumping despite 110 trillion won in shareholder returns… The secret to Samsung Electronics' 5% stock price plunge / Is the KOSDAQ's June nightmare starting again? | CEO Kim Dong-yeop
815 Money Talk (815머니톡) · Aug 21
4:36:21
[26.08.21 Afternoon Broadcast Full View] Samsung Electronics to Implement Q3 Cash Dividend! Only Semiconductor Top Two Strong in Shareholder Return Competition...KOSDAQ is a Sell Sidecar! What About the Domestic Stock Market Next Week?
3PRO TV (삼프로TV) · Aug 21
14:02
Bitcoin's Maturation: Why Institutions Are Replacing Libertarians
The Block · Aug 21
39:07
Why Bessent is Freaking Out, Gold and Bitcoin Rally, and Pumpfun vs Solana
Thread Guy · Aug 21

This Bloomberg Markets video, published August 21, 2026, features Marina Zavolock, Modupe Adegbembo, Neil Kaplan, Majid Jafar discussing VGK, EUR/USD, EUFN, IEV, DBA, 005930.KS, Asian LNG, BNO, DIESEL, CRAK, UNG. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Marina Zavolock, Modupe Adegbembo, Neil Kaplan, Majid Jafar  · Tickers: VGK, EUR/USD, EUFN, IEV, DBA, 005930.KS, Asian LNG, BNO, DIESEL, CRAK, UNG