♪ >> i am manus cranny. annmarie hordern alongside me in a london hq. it is "bloomberg daybreak: europe." stocks push higher, as signs of a stimulus deal before the u.s. election still the possible. nancy pelosi tells bloomberg an agreement is urgently needed. the white house expresses optimism over the talks.

christine lagarde says the early resurgence of the coronavirus is a clear risk to the economic outlook. germany and greece, along with the netherlands, hit daily records. netflix shares fall in extended trade, missing the street's estimates for q3 subscribers. the group's forecast for the period also suggests the pandemic boom is waning. have you been painting? have you been doing household redecoration? if so, you possibly got an akzo nobel product. let's look at the numbers. operating numbers -- operating margin, 7.7%. the market had penciled in 326 million. think about the relief we have been given in the u.k. housing market. the top line margin, anne-marie, is a cracking number. the adjusted operating income is a pretty good number. let's just see in terms of the outlook, because of course, we

are going back into a tough winter, as we have seen with the lockdowns and close downs. thisll keep an eye on statement. it is all about the outlook in terms of whether we endure. are going to have that conversation with the ceo a little bit later on, for akzonobel, and terms of his outlook. matt will do that. a little bit of erickson. you've got all the gear. good morning. >> they were expected to benefit from the rollout of 5g networks and clearly have. operating profit coming in at 9 billion, where the estimate was for 6.4 4 billion. for the net sale, that was pretty much a little bit of a -- 57.5.points this operating profit is really what is striking me. that is quite a beat.

this of consensus put into that they were going to do well. analysts did caution about headwinds from the fx. eir resultsigh on th but it does not look like it has done much damage. they are talking about your to date results trending confident for 2020 targets. we have been seeing companies really struggled to set some of these targets, given the pandemic, weighing that uncertainty on their business models. manus: that's all about visibility, lack of visibility. we had a bit of a dustup in terms of what drives markets today. skinny deal, fat deal, nancy pelosi deal? the deal will be the deal whether it comes before the election or not. which is the bigger alpha, the equity market or the -- >> kind of reminds me of our coffee. i know you like a skinny latte.

i am interested in a little extra vanilla and sugar. i think it's really going to depend on if the senate republicans can sign up for it. president donald trump says go big or go home. we know the democrats want to go above $2 trillion, but the senate republicans, that's where the hurdle is going to be. even if the white house and nancy pelosi can strike a deal, can mitch mcconnell rally the troops? markets are clinking on a little bit so that potentially. we see that in the u.s. equity futures this morning. 8% one pushing above 0.8 the yields -- 0.8% on the yield. the 1997 all-time high is in play. where were you in 1997? the yuan at the strongest level in two years. this is now a fresh test for the head of the pboc, the governor.

how much strength will he tolerate? that will be a critical question. back to one of our top stories. house speaker nancy pelosi says she is hopeful for a stimulus deal this week. that is crucial to getting a bill passed by election day, even as mitch mcconnell is reporting the white house against a bigger deal. pelosi struck a positive tone heading into the latest talks when she spoke to bloomberg television. speaker pelosi: we all want to get an agreement, because people need it, and it is urgent, and our economy needs it. so, hopefully by the end of the day today, we will know where we are. we had one little bump in the road with the appropriations committee. i am not sure they are going to be ready, but let's hope they are. we are starting to write the bill and then we can have a negotiation. i am optimistic. legislation is tough, because you're coming from two different perspectives. as long as we know that we want

to keep the american people safe , that means that we have to support our state, local, first responders, health care providers, teachers, etc. we want to put money in the pockets of the american people so that they can have some confidence and spend in our consumer economy to injected demand, create jobs. >> take us through the process. what sort of language do you need to be able to say yes, we think this will work? you don't need the entire bill to be written, that takes some time. what do you need to have reduced to writing so that you know that you have a meeting of the minds enough to say yes, we can make this work? speaker pelosi: again, rings have different weight -- things have different weight. honor our heroes, crush the virus, money in the pockets. within those, we will have more money for state and local, because those are the people who

need it. they are getting fired, going on unemployment. that is one place where we need more work. we have some language we have to deal with in terms of health, beyond the testing, tracing, treatment, mask, all that, we have to have better language, improve the language on health care providers, as well as the vaccine. it is within range. in terms of money in the pockets, we are still fighting for an earned income tax credit, child tax credit for working families in our country. to 8u have seen, 6 million million more people will fall into poverty because of covid. we think we should be investing in them. us help with the neediest, they will spend first. -- it right thing to do

is the right thing to do. we have some differences. book-ends of our differences, one is state and local, and the other is liability. by the time i speak to the secretary at 3:00, i think that we will have language countering what they have in the bill. because of safety in the workplace for us is not an issue, not a provisional bill, it is a value. these families, many of them .ssential workers, go to work if they do not, they do not even get unemployment insurance because they might catch the virus because provisions have not taken place. so again, safety in the workplace very important. i am hoping that we can come to terms on that. in between come a we have some differences. of course, they don't want to do anything for elections. i am very concerned about what they are doing on the census. it is so unconstitutional.

live toe may have to fight another day on that, i do not know. they've said they have no movement on the census, which is in defiance of the constitution of the united states that every person in the country should be. counted. . the supreme court just ruled that the president could stop the counting, but the congress can change that. that's what we hope to do. that was the house speaker, nancy pelosi, speaking exclusively to david westin. the white house also expressed some optimism on progress. mark meadows said everybody is working really hard to get an agreement by the weekend, with the administration offering an increased $1.8 trillion. our guest host is henrietta pacquement, head of investment-grade credit for europe at wells fargo management. good morning to you. good to have you with us. henrietta: good morning. manus: one could see the

justification for risk on in the equity markets. how muchis no deal, could these equity and bond markets unseat? henrietta: i mean, i think you put it very well earlier on in the conversation. there is going to be a deal at some point. i think yes, are we going to get a deal before the election? that is probably more unsure. next couple of months, i think given that both sides want a deal, it's a question of size, it's a question of the degree of technicalities, it's going to happen. i think that is going to limit the selloff that we might have on the equity markets. i think that is why we have had the movement that we have had so far, which are not that big, given the current environment with the resurgence of the virus at this point. good,manus's point, and

someone at morgan stanley was pressing his call earlier, talking about a 10% fall on equities. at some point, do you think we are due for another correction, fiscal deal or not? henrietta: i think equity markets have come a long way. also, some of the movement that we have seen has been very concentrated if you look at the stocks that have been pushing the markets up. in terms of performance, if you look at the difference between the u.s. and europe, you are probably looking at maybe 8-10 stocks that are causing the big difference in terms of amplitude. the -- side of things. i think equity markets are in a oppy area right now so a bit of movement, a bit of drawdown is a possibility at

this juncture. manus: let's talk about positioning. , whove the asset managers an be onong as long c the net longs. the hedge funds are as short as they could be. a deal, skinny or fat, who knows? if we have a deal and if we have how much steeper can the curve go? i suppose the hedges will win, won't they? henrietta: the hedges will win, at least temporarily. given where we are, it has probably got a bit more to go. as soon we get to the 90's or 1% , you have to remember that the rest of the world is still in a very low yield environment. the attraction of that level of yield is going to bring buyers in again.

yes, it might be a bit more to go but i think that is capped by the fact that you are still in a low yield global environment. there may be a bit more to go, but it will be bringing buyers in. >> i want to check the other flipside we can potentially see on november 4. these positions will benefit if we were to get a blue wave. what if president donald trump does gain another four years, or what if we have a split in terms of a biden administration, the white house, but not in control of the congress? what does that do? henrietta: i think that brings more uncertainty at this know, i think you whether you get trump or biden, both of them are going to look for stimulus. it is going to be sizable stimulus at this juncture.

i think the style is going to be different between the two. if you look at trump, i think we will have a bit more of the america and less predictable foreign policy to deal with, which will cap some enthusiasm. thehe case of biden, stimulus is likely to come other things of attached. that will cap some of the enthusiasm. fromnrietta pacquement wells fargo asset management stays with us. christine lagarde says the early resurgence of the coronavirus is a clear risk to the economic outlook. germany, greece, netherlands, they all hit daily case records. we are going to discuss that next. this is bloomberg. ♪

♪ annmarie: some breaking news this morning. i am annmarie hordern with manus cranny in dubai. numbersle --nest nestlé numbers, quite good. the estimate was for 2.8%. strong numbers coming out of nestlé this morning. manus: they are also saying that the strategic review is for the on track -- fully on track. to give that kind of a revenue beat in terms of how they have affected their overall, that's for the nine-month, how have they impacted in terms of pricing? we want to keep an eye on that. you think of the host of a brands within the nestlé family and you begin to understand the breadth that they had. the portfolio transformation continues, the action on sustainability. they expect organic growth of around 3% for the full year.

annmarie: yes, and before that, they saw 2%-3%. they are in the top end of that range. this comes in the backdrop of europe's outbreak, and it continues to spread. greece and netherlands hit daily case records and spain is weighing a curfew in madrid. and the united kingdom, prime minister boris johnson forced the manchester area into the country's strictest measures. ecb president christine lagarde sounding the alarm, calling the unexpected early resurgence in virus cases "a clear risk to the outlook." policymakers are gearing up for more monetary stimulus and the governing council is meeting .next week henrietta pacquement from wells fargo asset management still with us. let's start with the ecb. christine lagarde saying the scientists had all predicted we were going to see a resurgence of cases, but it was supposed to

come in november, december. we are not even in influenza season and we are already seeing the resurgence of cases. does this give you the confidence that the ecb is going to have to act? henrietta: i think that's right. we are expecting the ecb to do more at this juncture, given the impact we are seeing. countries are trying their level best not to go into the hardluck down that we had at the beginning of this year -- hard lockdown that we had at the beginning of this year. we are seeing rolling lockdowns, which is going to affect sentiment and it may slow down growth that we've got at the moment. i do think that creates the conditions for the ecb to act. possibly october is a bit early for that. i think they will want to see a bit more. pressureks up the pe

for a december move. manus: what caught my eye, the said, we had a long conversation with steven major. at negative, the rba talking a softer line. this reopens the flesh wound that is deeper negative rates in europe if we are to survive the quasi-currency war which is going on. henrietta: deeper negative rates on the european side, i think that we are further down the line in terms of negative rates in other jurisdictions. i think at this juncture, from my perspective, we are more likely to see on the purchase side than getting further down the negative rates scale. i think the question is open in the u.k., and whether they cross the rubicon on the short-end

there, given that they have the combination of covid and brexit to look forward to in the next few months, so i think that is a real possibility, particularly if the deal on the brexit site or has trouble getting through. in the case of europe, i think what they are more likely to do is on the asset purchase program, from my perspective. manus: ok. hold those thoughts, don't go too far from your zoom call. henrietta pacquement from wells fargo asset management on the great rate debate. first word news flow to be had. laura wright in london hq. >> google is being sued by the u.s. justice department for abusing its monopoly in search. it is seen as the most significant antitrust action against an american company in decades. google controls about 90% of the search market in the u.s., and

the doj says that is "an unchallenged gateway to the internet." the u.s. is accusing google of using exclusive deals to smother competition from rivals. case is deeplys flawed and risks harming american consumers. we compete vigorously in the marketplace. our industry, our sector is marked by prices that are free or falling and rapid innovation, and those are really hallmarks of a competitive industry. >> the u.s. and eu are heading for a clash over their preferred candidates to lead the wto. --rces tell bloomberg that brussels is supporting nigeria. the trump administration is leaning towards the other candidate from south korea. the preference of the other major economies is not clear. saudi arabia's crown prince is being sued in the u.s. over the killing of journalist jamal khashoggi. the prince and 20 others are named in the complaint. khashoggi was killed by saudi

agents. the crown prince denies any involvement but accepts responsibility as the country's defective leader. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. -- de-f acto leader. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: -- annmarie: thank you very much for that news roundup. coming up, the pain continues. cathay pacific will flash -- slash more than 5000 jobs in hong kong as part of a sweeping overhaul. that news in your morning call next. this is bloomberg. ♪

♪ it is "bloomberg daybreak: europe" with annmarie hordern in london and me in dubai. to the airlines. cathay pacific will cut about 5300 jobs based in hong kong. shey are going to close cathay'

dragon unit. let's get to singapore. juliette saly has been tracking the details. juliette: as we were talking about earlier, nobody likes when we hear of big job cuts like this. it is about 8500 total from the hong kong based carrier, more than estimated by local media yesterday. ofs is about 24% cathay's workforce. 26 unfilled -- 2600 unfilled positions will be eliminated. you have seen shares in hong kong jump quite substantially but down about 41% over the course of the year as the pandemic has hit this airline particularly hard. we have jeffries maintaining cathay at hold.

-- has maintained a neutral , saying thethay hong kong express unit could take over some of its dragon roots. they say more cuts and pain in the year ahead. worth noting that urb and morningstar still have a buy on cathay pacific. annmarie: juliette saly in singapore, thank you so much. just a devastating how much the airline sector is losing in terms of jobs around the globe. very quickly, we have to recap these breaking headlines from netflix -- nestlé. the organic revenue up plus 3%. really on the top end of estimates. manus: yes, so the guidance is there, and the strategic review. i think at one juncture, lipton tea was described as a structural drag.

that will be done by early 2010 one. we talk food --2021. we talk food and jobs next, and also central banks and the yuan strength. this is bloomberg. ♪

♪ annmarie: good morning from bloomberg's european headquarters in london. i am annmarie hordern with manus cranny live from dubai and this is "bloomberg daybreak: europe." the saga continues. stocks higher as nancy pelosi tells bloomberg an agreement is urgently needed. it comes as the ecb president christine lagarde says the early resurgence of virus cases ahead of winter is not a good open. netflix shares chill. misseseaming service wall street abstinence for

third-quarter subscribers and its forecast says the pandemic boom is starting to fade. nestlé with nine-month organic revenue, it says its current strategic review is fully on track. good morning, manus. 6:30 a.m. in london. we were having this debate, what is driving these markets. every day, there is a new tug-of-war, twists and turns in d.c. even if nancy pelosi and the white house were able to get a deal, the hurdles are really in the senate with mitch mcconnell and the republican senators. manus: yes, look, we do not know whether it's going to be a skinny deal, a deal, or whatever it is that's got us in a risk on mood. rates are trading higher. for me, it's about the dollar. it is shifting on the dollar. the dollar is popping on the ping and the-- plop yuan is bid everywhere. annmarie: i know you are going

to bring up microsoft and ask me where i was in the late 1990's. for me, it reminds me of the breakup of the standard oil company in 191.. what oil -- 1911. what oil was is what data is to the sentry right now. manus: i was not around in 1911. you have the chinese tech companies pushing back against the nvidia arm deal. i think this puts tech wars at the center of 2021. netflix goes down. that was not the after hours trading. . we should correct that. it was down over 4% and after hours trading -- in after hours trading. softbank down 1.7%. let's roll it over, have a look at the equity markets. bonds are popping higher. ifl the sweeteners continue they get biden in the white house and do not get the congress? hedges shortest on record on the

30 year paper. bid.e got the yuan went what is the tolerance of the pboc for this stronger yuan? let's talk about the yuan. it is the strongest since 2018 and it is that litmus test for the pboc as investors wait to see, how will the officials respond to the games? let's get to dani burger with the insight. we've got the bid, where does it end. dani: so far, does not seem insight unless the pboc can really step in with some big firepower. the gain against the u.s. dollar takes us to the july, 2018 highs. you can see this continued ramp up here versus the u.s. dollar. really, this ramp up, this period right here is a story of relative strength, a story of the chinese economy

outperforming really the rest of the globe. an interesting point was a lot of it is a dollar weakness story. if you want to short the dollar heading into the u.s. election, there is really not a lot of alternatives in terms of a currency pare. you are going to pick the yuan to go along against the short dollar. the pound, of course, has that brexit volatility attached to it . annmarie: if we see a blue sweep, that could be further dollar weakness in terms of massive fiscal support. what are you doing if you are the head of the pboc? at some point, this level of strength is just too much. dani: absolutely. one of the favorite tools of the pboc is there daily reference rate. -- their daily reference rate. they also have some other tools

in their disposal, including weakening some of the currency controls. earlier last month, we had china allowing more short positions to be easily put on the yuan. investors here, they are preparing for more swings in the currency. this is the one-month volatility. they are saying, we are waiting to see what the pboc does and potentially gearing ourselves up for more movement. heretender here -- tenor also captures the u.s. election. that might be continued strength, continued shortening of the dollar against the renminbi as we get to the first week of november. annmarie: thank you so much for that. global recruiter randstad has beaten estimates with third-quarter growth margins. it says visibility remains limited amid macro uncertainty. the group sees resilient operating performance in north america. residents particularly exposed in the united states, within 20% of revenues coming from the u.s. market. joining us is jacques van den

broek, ceo of randstad. we are seeing a resurgence of cases in europe and even the united states. obviously, we have seen this impact jobs. what does it mean for the jobs growth in terms of what you are seeing in europe and the u.s.? jacques: good morning morning, good to be with you. actually, what we are seeing is a very different picture per sector. sectors which are still doing good is life sciences, logistics, anything online, food retail, anything around health care, testing, government support. those sectors were coming back throughout the quarter. they are not being hit by what is currently going on. working from.ople . . that were hit are still down -- people working from home. the sectors that were hit are still down. automotive, which was hit, is

coming slowly back. barring total lockdowns, it actually looks pretty positive, because we do see momentum even after the first quarter in the first weeks of october continuing to improve on september, which was the best month in the quarter to begin with. manus: good morning to you. you talk about that visibility remaining limited. can you just put a bit of color on that? you just talked optimistically to us. where are you most optimistic? give me the geographies you are most optimistic about? jacques: it is actually very broad-based. we got some spectacular returns. our french market was down 41% in q2, germany down 31%, now 21%, italy -30%, now 10%. italy is a country that is it doing very well and very

disciplined with the whole virus measures. it is a very broad-based return, which is good. the only thing i am worried about, of course, is total lockdowns. if a city in madrid goes down, that is like half of the spanish market, for example. i am appealing to everybody out go home, to work, then stay home and read a book and wait until the viruses over. -- virus is over. annmarie: very good advice. catherine manz of citigroup said fears of the pandemic have led so much slack in the economy that firms will not be in a position to demand higher prices for some time. what does it mean for wages? jacques: wages, of course, the first priority is keeping your job. if you are in danger of losing your job and in a sector like -- airlines or

industry, you should think about reskilling. city, manying scar jobs will quickly return, as it already has of course in health care and education, so that will return. asus: you mentioned italy handling the situation perhaps differently, better, if i can up some your phraseology. who is delivering the best extended for low response? who is the smartest, sharpest, best responder to extending furlough? jacques: a lot are handling the crisis in the broad sense of the word is a country like denmark. the key is testing. asia was very diligent testing. china has basically tested [audio drop]

[indiscernible] manus: ok, it looks as if jacq ues, are you there? give it one more go. nope, i think we have possibly lost? -- lost jacques. that is jacques van den broek. jacques: you cannot hear me? ok. manus: if you are still there, we are going to -- no, you are gone, ok. let's get to laura wright. she is in london hq. she has the first word news. >> they u.s. could be edging closer to a stimulus deal. house speaker nancy pelosi says she is hopeful an agreement can be reached this week but timeframe would be crucial to getting a bill passed by election day. senate majority leader mitch mcconnell is still warning the white house against pursuing a bigger deal.

pelosi told bloomberg that progress is being made. speaker pelosi: we all want to get an agreement, because people need it, and it is urgent, and our economy needs it. we had one little bump in the road with the appropriations committee. i am not sure they are going to be ready, but let's hope they are. we are starting to write the bill, and then we can have the negotiations, but i am optimistic. president christine lagarde says the resurgence of the virus, even before the coldest winter months, is a clear risk to the economic outlook. it is a sign the policymakers are gearing up for more monetary stimulus. economists large expect them to wait until december before boosting the over 1.3 trillion euro bond buying program. the u.s. and the eu are heading for a clash over their preferred worldates to lead the trade organization. sources tell bloomberg that brussels is supporting the nigerian candidate. observers believe the trump administration is leaning

towards the other candidate from south korea. the preference of other major economies is not clear. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie: laura in london, thank you so much. coming up, is the subscriber party over? that is the question netflix is asking itself after slumping in late trading after adding fewer new subscribers than what was expected. the tech conversation coming up next. this is bloomberg. ♪

♪ annmarie: 6:45 in london. this is "bloomberg daybreak: europe." tradingslumped in late

after adding fewer new subscribers than what was expected, and issuing a forecast that misses wall street projections. joining us now is media and tech analyst at bloomberg intelligence. good morning to you. much of netflix growth is tied to new subscribers and also content. the pandemic has really influenced both of these sectors. what is the outlook going forward? dip.s, we saw a bit of a 2.2 million against the 2.5 million estimate. in the greater context, it has been a great year for netflix. 28 million subscribers. they are on track to hit 34 million, which would be a record year for them. they are expecting subscriber growth next year to kind of go back. they're expecting to come out to similar levels pre-covid, so maybe 27 million, 28 million customers a year. the company still sees a huge runway of subscriber growth.

most of that will come out of the u.s. obviously, content production was hit quite heavily this year. they had a great lineup of content ready to go in 2020. people have been enjoying a lot of netflix shows this year. already said production started on about 50 shows already, and they think it will yart on another 150 before ear-end. expect a big ramp up in content next year. that is why they expect their cash flow next year to be kind of flat to down about $1 million, because they will be ramping that content production up again. they talk about 30, 40, 50 million people watching these shows within the first four weeks of launch. this content is landing well.

they are expanding local language content, so it is not just english-language. manus: i am waiting for the next "bllod on rome," it's in italia. the u.s. department of justice is suing google, accusing it of abusing its monopoly. the search giant responded to the landmark case, saying it risks harming american consumers. >> we think this case is deeply flawed and risks harming american consumers. we compete vigorously in the marketplace. our industry, our sector is marked by prices that are free or falling and rapid innovation, and those are really hallmarks of a competitive industry. manus: so that was the google response. why is this google antitrust lawsuit causing such a stir? what effect might the case have?

sandra bernstein says it has limited risk. do you agree? >> yes, they share price agrees with that yesterday. it's probably the first time in well over two decades that we have seen such a big antitrust case in the u.s.. typically, the u.s. does not like to use regulatory tools to hit these big much champion companies. the fact that they are going after google does potentially raise risk about the future. if you think back to the last big case, you had microsoft, they had to kind of change some .f their kind of behaviors we are all still using excel, word. i imagine in the years to come, we are still going to be using google maps, android as an operating system. it will probably not disrupt their business too much, but you may well see that the areas where perhaps they do have to things.

runink probably in the long , not going to be that disruptive to google. in europe, they have had to pay some fairly hefty fines. that may be what happens in the u.s. they might have to moderate their behavior a bit, but difficult to see the google machine being massively disrupted by this. manus: ok. thank you very much, matthew bloxham, media and tech analyst at bloomberg intelligence, and an enduring and long relationship with google maps. tesla reporting earnings later today. the company will start exporting china made model three sedans to europe. tesla's third-quarter deliveries beat estimates. let's get to alex webb, our opinion columnist for brumberg. 8 -- bloomberg. a feast for europe, a new tesla.

what can we expect from the earnings today? alex: we are really going to be seeing to what extent tesla has been able to benefit from the surge in electric cars. bmw enjoyed very positive numbers, lots of people i haveown -- in lockdown saved speculative money. tesla is likely to be a beneficiary of that. the key number is free cash flow. that is the number which lets tesla serve its debt effectively, and there is going to be a huge surge in free cash flow, the biggest in the third quarter. analyst expectations, $1.1 billion. let's see if they can meet that number. annmarie: be looking on the lookout for the free cash flow. we spoke about this from afar on twitter.

i am seeing more and more ubers that are tesla. is tesla going to be able to be able to lead the way, even though you have ev's coming out for bmw and mercedes? alex: i do not think we are going to see tesla taking over the ride-hailing market, not least because the financing offerings they have. if you look at the companies that get into that space, toyota previous, they are companies with -- prius, they are companies with pretty decent financing. we are going to be a surge in ev's coming from daimler, volkswagen. volkswagen has its own captive financing arm. that will be a huge useful to and addressing that market. that market is still not that big for ride-hailing vehicles. about 300,000 units per year prius nowta sells, the

being the most popular of the hybrid cars used by ride-hailers. significant number that is going to move the needle. annmarie: alex webb, thanks for joining us. be looking out for the test learning report later on this afternoon after the close in the united states. coming up, nestlé raises for your revenue target amid demand for big brands during the pandemic. that story next. this is bloomberg. ♪

♪ manus: it is "bloomberg daybreak: europe" with manus cranny int dubai. nestlé raised full-year guidance on the revenue target amid demand for big brands during the pandemic. revenue climbed 3.5% on organic basis for the nine months through to september.

third-quarter sales growth was the fastest in at least five years. getting a boost from people consuming more at home, increasingly choosing established brands. the question is, this is the question, you need to respond on twitter now. honey not cheerios, what is your favorite brand in the nestlé family? a nestlé nut cheerios brand? what is your brand? annmarie: i think the team is a big fan of kit-kat. me, aing that did strike ceo set earlier this week that smaller brands are becoming less en vogue than they were five years ago. i wonder if the pandemic has really brought the trend back of a big brands, order online. another thing i am very keen on looking out for for nestlé, a, whenrgers, faux-tun

are they rolling that out? that will be big. manus: en marche! to the producer on the show. to more important -- homage the producer on the show. what brands will not survive? they have upped the guidance. will that endure? annmarie: will that enter? will the 8 -- endure? will the e-commerce surging? it is the reason why they are able to offset losses in the food sector. interesting to see what they do with the bottled water. we are in earnings season, just over an hour away from the start of the european open. u.s. stock futures up higher this morning, manus. ♪

♪ anna: good morning. welcome to "bloomberg markets: the european o ok." met anna edwards alongside miller in berlin. matt: u.s. stimulus could be larger than expected. futures point higher. the cash trade is one hour away. here are your top headlines from the bloomberg terminal. germany, greece and the netherlands. for daily coronavirus cases. the u.k.