Germany's Far-Right AfD Wins State Election Landslide | Daybreak Europe 9/7/2026

Watch on YouTube ↗ | September 07, 2026 at 07:07 | 48:57 | Bloomberg Markets

Speakers

Paul Wallace — Team Leader/Senior Editor, Bloomberg

Anthony Stevens — Bloomberg Market Producer

Mark Cranfield — Cross Asset Strategist, Bloomberg

Jane Foley — Rabobank Head of FX Strategy

Christoph Ahlhaus — Chairman, German Association of Small and Medium-Sized Businesses

Marcel Fratzscher — President, DIW

Jordan Bardella — President, National Rally

Abeer Abu Omar — Reporter, Bloomberg London

Summary

The episode covers overnight market moves and political risks. Energy prices rise on U.S.-Iran tanker escalation, while Asian tech and semiconductor stocks rally on AI optimism. It also discusses U.S. Treasury supply, Fed/BOJ/ECB event risk, Germany's AfD state election win, and French budget red lines.

Brent crude trades near $100 and European gas futures rise as U.S.-Iran tanker strikes escalate.
Asian equities gain, led by Korea and SK Hynix, on GPT Six and AI optimism.
China's bank capital injection dilutes bank and insurance shares while tech attracts flows.
Mark Cranfield expects Treasury volatility and upward long-end yield pressure from auctions and buybacks.
Jane Foley sees U.S. dollar wobble and conditional yen strength tied to BOJ policy.
Germany's AfD state election win raises concerns about investment and economic policy risks.
Jordan Bardella outlines National Rally budget red lines on tax increases and debt.

Ideas

Anthony Stevens Bloomberg Market Producer 3:27

GPT Six AI optimism lifts Asian tech.

New GPT Six capabilities and progress toward AGI are driving broad AI optimism across Asia's tech supply chain, with Korea leading up 4% on SK Hynix, MediaTek gaining on custom hyperscaler chips, and SoftBank rising as a direct OpenAI play.

Anthony Stevens Bloomberg Market Producer 4:00

China bank dilution rotates into tech.

China's huge capital injection into banks, funded by share placements, is diluting bank and insurance shares and keeping bank-heavy MSCI China weak, while the market rotates into China tech, which is benefiting from AI optimism.

Anthony Stevens Bloomberg Market Producer 4:00

China bank dilution rotates into tech.

China's huge capital injection into banks, funded by share placements, is diluting bank and insurance shares and keeping bank-heavy MSCI China weak, while the market rotates into China tech, which is benefiting from AI optimism.

Anthony Stevens Bloomberg Market Producer 4:44

Watch yen and JGBs into CPI.

The BOJ is expected to act to stem the yen's slide, Goldman sees conditions for a technical rally in the yen, and there are signs Japanese investors may trim JGB holdings to fund repatriation, so JGBs and the yen are worth watching into U.S. CPI.

Anthony Stevens Bloomberg Market Producer 4:44

Watch yen and JGBs into CPI.

The yen's significant move without intervention suggests markets see Japanese fundamentals as strong enough for a sustained stronger yen, and if the BOJ follows through with a hawkish turn or hike while the Fed holds, the yen would strengthen further, but if the BOJ fails to act the yen is vulnerable.

Paul Wallace Team Leader/Senior Editor, Bloomberg 6:56

US-Iran escalation pressures energy prices.

The U.S. sinking an Iranian tanker and Iran retaliating against U.S.-linked vessels signal that short-term hostilities in the tanker arena are worsening, which will almost certainly put further upward pressure on energy prices.

Mark Cranfield Cross Asset Strategist, Bloomberg 8:21

Treasury supply pressures long-end yields.

Heavy Treasury auctions and buybacks this week will create volatility, with traders likely pushing prices up into the buyback and then reversing, while the 30-year auction after the buyback pressures the long end most sensitive to mortgage rates and gradually pushes yields higher.

Jordan Bardella President, National Rally 11:05

Bardella red lines support French debt.

Bardella says National Rally will firmly oppose tax increases on French households and businesses and rejects debt cancellation, arguing France must restore confidence with creditors and return to fiscal legitimacy and stability.

Christoph Ahlhaus Chairman, German Association of Small and Medium-Sized Businesses 19:49

AfD rise threatens German investment.

AfD policies such as leaving Europe, rejecting immigration, opposing renewables, and returning to Russian gas would cause a huge drop in German GDP, a large rise in unemployment, and would destroy Germany's economic model.

Jane Foley Rabobank Head of FX Strategy 30:26

Dollar confidence weakened by debasement.

Dollar confidence has weakened after the poor dollar reaction to strong payrolls and the dollar-debasement discussion, and while a stronger CPI may provide a temporary boost via Fed hike expectations, the dollar is looking wobblier than in the spring and summer.

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This Bloomberg Markets video, published September 07, 2026, features Anthony Stevens, Paul Wallace, Mark Cranfield, Jordan Bardella, Christoph Ahlhaus, Jane Foley discussing KOSPI, 000660.KS, 2454.TW, SFTBY, CQQQ, KBA, Chinese Insurance Companies, MCHI, JGBUX, FXY, UNG, BNO, U.S. 30-Year Treasury Bond, OAT, EWG, DXY. 10 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Anthony Stevens, Paul Wallace, Mark Cranfield, Jordan Bardella, Christoph Ahlhaus, Jane Foley · Tickers: KOSPI, 000660.KS, 2454.TW, SFTBY, CQQQ, KBA, Chinese Insurance Companies, MCHI, JGBUX, FXY, UNG, BNO, U.S. 30-Year Treasury Bond, OAT, EWG, DXY