yousef: annmarie: dani: good morning, this is "bloomberg daybreak: europe." concerns grow as europe risks another lost summer. stocks lift as the reflation trade sizzles, but treasuries held onto yesterday's gains. more payouts from wall street,

cash returns to investors after tanks pass the fed stress test. but citi bucks the trend with no planned increase. plus, demand concerns, will slips over concerns opec-plus might increase output despite the threat of a slowing recovery. good morning, here we are a day after the carnage in the cyclical trade. it was remarkable to see yesterday that industrials, financials, energy all getting decimated, screaming late psychodynamics as we have the yield curve flattening as well. is it a head fake? we have over at j.p. morgan, they are saying that financial conditions are too tight, tight credit spreads, real rates that are too low to be positioning for in psychodynamics. maybe this is the environment where we want -- four end psychodynamics.

this might be the varmint where we want to sell bonds. yousef: the steepening yield curve could be temporary, that is something to consider. another surprise came on the dividend payout site, morgan stanley leading some of that, nothing short of remarkable after they passed some of the fed's strict capital requirements. it will give investors a some content to think about. in terms of the dividend advantage, that is beginning to fade. gtv for our clients. that is the estimated dividend yield spread and it shows you very much there is a gap. speaking of surprises, i've got football on my mind. the upsets in european football -- wow. switzerland is known for a lot of things, but winning against france overnight, wow. swiss alpine defense and swiss cheese, normally not a good recipe, but it worked out. dani: i'm going to guess they did not have a whole helping of

cheese beforehand. i have no skin in the game here, in the euros, i guess the u.k. would be my team, but i want switzerland to take it all and i am thrilled the underdog came out on top. yousef: it has been a tournament of underdogs and maybe that tells us a bit about the markets. let's jump into some more detail around that and see the state of play across assets. nasdaq futures called a little lower, perhaps a chance to reflect, is this an inflection point out a value into growth? maybe too soon. that is some thing to consider. u.s. 10 year yields at 107.82. is there an opportunity for the dollar to consolidate? that's what the markets live team is writing about now. the rest of the world is restricted. could be good for u.s. equities and bonds as well. brent crude down half of 1%. we are counting down to the

opec-plus meeting but there is a lot that goes into the occlusion -- the equation. including the technical side, which tells a different story. the reflation trade fizzling, as we've been talking about, amid new virus curbs from europe to asia. meanwhile, a former treasury under the clinton administration weighed in, and argued a material risk of injuring inflation is there. >> is it inflation at the moment, transitory, or enduring? i think the material risk could be enduring and policymakers should act accordingly. there's also a material possibility as many would argue, that it is transitory, in which case we will be ok. as an investor and policymaker, i would have a cautious bias. yousef: let's get to our guest from wells fargo asset management. we've got to former treasury secretary's who are warning about inflation not being transient. that it will prove to be

enduring. that is arguably a warning flag if there is any to be seen. >> i think it is right. i think is going to take a while to unfold, and inflation is a conversation we will have a little while yet. we are in a situation on both sides of the pond, you have significant packages, and also in the u.s. of course, and this could lead to more persistent inflation. but this is information we will gather over time. if you look at market reactions at the moment, they are buying the transitory nature of inflation at the moment. have to see how it evolves. dani: it feels like every time we hear the transitory word, we get movement into riskier assets. there needs to be a point where the fed steps and. maybe just to take some of the froth out of the market? >> i think we got a bit of a taste of that in the last

session and they came across as more hawkish than maybe markets were expecting and it had an impact on the market, as we saw. at the moment, i think the focus they have is on the employment side. i think this friday will be a key one to watch because they are really looking to see how workforce is coming back to the office. so far, the numbers have been disappointing for a variety of reasons, but that focus, they really want to get people back to work. yousef: what's going to happen to the yield curve from this point onwards? i mentioned earlier, rbc saying that steepening is temporary. would you agree and where do you want the 10 year yields to end 2021 at? henrietta: at the moment it's a bit of a push and pull. you talk about the delta variant and how it impacted yesterday,

the reflation trade back on on friday, and we saw slightly higher yields. things have settled in a range with the upper end maybe 175. if we see robust growth and a return to the office, we could break the upper band toward the end of the year. but if the risks do persist and we get a bit more uncertainty due to the pandemic coming back in some form or fashion, we will not reach that. dani: one thing that has been vexing me, and it seems to be vexing the market as well, is where we are in the cycle. if you think rose is coming back, that -- but at the same time, we have record low u.s. junk coupon. really remarkable that we get a junk bond yield there. what does that tell you about where we are in this cycle? henrietta: what we've had is a superquick cycle. we also had a phenomenon where

evaluations, because of the support of central banks, fiscal support, front run from a fundamental perspective. we have got valuation in the credit market and equity market to reflect a return to growth. and something that would be further on the just the recovery may be a bit closer to the turn of the cycle. i think it is probably a bit early to say that, we are still in a very favorable environment from a fiscal and monetary perspective, but the bulk of that stimulus is probably behind us at this point and it does warrant a bit of caution. yousef: the markets live team is writing there is an opportunity for the dollar to build on recent gains in the third and into the fourth quarter. is that something you've looked at with your team and what are some key conclusions from that? henrietta: it's an interesting one to watch. it is an investor place from a

vexing perspective and growth perspective, you might leave a little room for it to strengthen at this point. but we do think grows around the world will catch up and we get further vaccine rollout elsewhere, and that could temper that trade. i think for us to get growth in a consistent fashion going forward, that is something that needs to happen. i think it is one to watch. maybe a bit more consolidation at this point. dani: do you position for the possibility we don't get that consistent growth or have any sort of synchronized global growth? and if so, where do you hide out to get that safety? henrietta: at the moment, if you look at the portfolios we are running, we are expecting a more kerry type environment this summer, given we have had the fed, the bank of england, the

ecb, setting the scene for the summer. we will potentially building up more liquidity in the autumn, expecting more volatility as more favorable positions get removed if growth continues on the path it is on at the moment. so a set up for a carry summer of distraction. dani: definitely that low volatility environment may be a coiled spring ready to burst. you are going to stick with us, henrietta, from wells fargo. we are going to be looking at how the global pandemic is affecting the fed policy direction. overnight we will have an exclusive with the fed government and fomc voting member, christopher waller. now let's get to the first word news. >> good morning. starting with a new study that found mixing doses of covid vaccines from pfizer and astrazeneca create a strong

immune response. the university of oxford research could allow for greater flexibility in the use of scarce supplies. the mixing resulted in high concentration of antibodies against covid-19 when given four weeks apart. facebook has won the dismissal of two u.s. antitrust cases after a judge ruled the government failed to establish the social network has a monopoly. the lawsuit claim to facebook violated antitrust laws by buying instagram and whatsapp. there is 30 days to refile the complaint. the u.k. government is preparing to lift all remaining coronavirus restrictions in england on july 19. despite the delta variant sending infections of to the highest rate since january. the new health secretary said he

is very confident curbs will be lifted as planned. u.k. reported more than 22,000 new covid cases yesterday, but hospitalizations remained low. 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. yousef? yousef: thank you, annabelle. coming up. europe's covid physical passport comes into effect later this week, but is it enough to rescue the leaguer to travel sector from the delta variant? -- beleaguered travel sector from the delta variant? we will have more. this is bloomberg. ♪

>> we really feel it is important to get the flywheel going. we are constraining, choosing to constrain capacity so that we

can learn, because we have to learn, and our objective is to bring our ships back fairly quickly and i would expect the majority of our fleet to be back operating before the end of the year. yousef: that was richard fain, ceo of royal caribbean cruises, saying he hopes to have the majority of his fleet back sailing by the end of the year. looking at the markets, many travel and leisure stocks selling off yesterday. investors in the sector faced with a bit of an existential, unpleasant question -- could this be another lost summer for europe? maria tadeo joins us from brussels. maria, europe is reintroducing restrictions for travelers. to what extent is it likely to derail the seasonal together? maria: yes, that is the question, and we saw that reflected in markets yesterday, the big concern over the summer

season, it whiplash travel stocks in europe. when you look at the picture right now, we are seeing more restrictions come into play. we've seen them from -- that will ask for a negative pcr test to enter the country. it is a change from the previous rules that said if cases are low from a country, you don't have to take a pcr tests. a number of things are coming into play. one is this is a reminder of the summer season last year. when you start changing the rules and legislation, it makes it very difficult for people to actually know what is going on. if you don't know what is going on, you don't want to book that flight. secondly, the timing. restrictions coming into play two days before the covid passport is set to come into effect in europe. that was supposed to be the big debut for the summer season, the

start for the summer holiday, but it is marred by a lot of question about how much of a summer season we could have. dani: i suppose another confusion on this front could be discrepancies between what different countries are saying for these travel rules. does europe sound united on these measures? maria: that's a good point. overall, the covid passport, what it does is it is supposed to standardize the rules and streamline legislation across the european union so it works the same for every country. in principle that will still be the case when it becomes active july 1, but if you ask different countries in europe, you will see they have a different approach to the delta variant and the potential new wave. the germans are being very careful. they don't want the virus to pick up in september. the timing is not a surprise, they have elections and they are focused on keeping the virus in check. when you speak to some southern european countries, they argued

this summer should be different from the previous summer. we have a vaccine, the elderly population in europe is vaccinated, and you have to learn how to live with the virus until you get to herd immunity. you are seeing some of the political tension kick in. dani: i am sure some of the disappointment might come from you and yusuf unable to come here and watch a spain and switzerland play each other. yousef: i am ready here, i've got my jersey. [laughter] yousef, for you, ok. dani: oh goodness. maria, thank you so much, maria tadeo in brussels. henrietta from wells fargo is still with us. i will not ask you who you are rooting for in the euros, but what else maria was going over with us, travel is up in the

air, and stocks got hit hard yesterday. is the sector attractive at all? or do you leave it alone until we get more clear signals? henrietta: i think it is one you have to play when you think valuations could be more interesting. until recently, we felt valuations had gone a little too fast, because it is one that is the epicenter of the pandemic. as much as countries like the u.k. and u.s. for that matter are quite advanced in their vaccination program, we are not quite there in europe. they have made strides and are catching up, but the reason why the delay was done to the 19th of july was to make sure the bulk of the population in the u.k. was double vaccinated. we are not quite there yet in europe. you can understand why countries like france and germany are being a bit more cautious, and

the tensions you were mentioning about those countries, and tourism more important and they have more of an incentive to get the u.k. population traveling again. for me, it is a question of valuations. we will see progress, but it is -- at the moment. yousef: we had a german government bond selloff, and clearly that got to the shores of the ecb, the markets live team was speculating it had gone too far. italian and german government bonds coming down again the last 24 hours. i am wondering what your analysis is on that and the conclusions you are making. henrietta: so the move we saw more recently was probably driven by the slight risk off movement we have seen. the ecb is in a different position from the fed, the inflation pressures in europe much less than we have seen on

the others of the atlantic. they've got more scope to keep an easing stance, and that's what we've seen in their tone as well. we expect that to continue. and for europe to benefit at this juncture on of the monetary and fiscal side, with some of the packages that are coming, that will look to invest in the second half of this year. so from our perspective, this is positive for european growth, and we may see a capex cycle kick off, something we've not had for a while on the european side. dani: henrietta, thank you so much, hope to have you back soon. up next, morgan stanley leads big u.s. banks in raising payouts for dividends and stock buybacks. how wall street is funneling cash to investors after the stress test success. this is bloomberg.

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dani: welcome back to "bloomberg daybreak: europe," i am dani burger in london with yousef gamal el-din in dubai. let's go to u.s. banks, with payouts and buybacks after clearing stress tech -- test. goldman sachs increasing its payout to two dollars per share. let's bring in our finance reporter. morgan stanley seems to be the real standout here. why does it seem like they are increasing their dividends more than the other banks? >> morgan stanley, you will remember, did the best out of the big six banks when the stress test results came out late last week. in accordance, they have raised their payouts. they are doubling their dividend

, they have announced $12 billion in share buybacks. it goes to the strength of the bank's balance sheet at the moment, the ceo saying it now has one of the largest capital buffers in the industry. yousef: what else stood out to you in the announcement from some of the other banks? wells fargo with a significant buyback program -- what else? >> wells fargo's buyback program , $18 billion, and they doubled dividends. jp morgan, bank of america both of boosted dividends, as did goldman sachs. what was interesting is citigroup indicated they were going to keep their dividend at $.51, a more subdued move from them because their capital requirements are increasing. perhaps it is not a terrible move, given we are likely to see questions from lawmakers on bank

dividends and payouts. dani: one sector or region of banks perpetually lower in terms of dividends, places like europe. can we expect banks and other regions to follow suit as well? >> that is the hope. the u.s. banks were able to do this because regulators have now lifted pandemic era curbs on dividends and buybacks. we are seeing that role through other areas of the world. here in asia, that is happening as well. in europe, the banks that were banned providing any a flip -- uplift through september, but they are having talks on bringing that forward. if they do, may be a part of some $50 billion for european bank shareholders for the likes of bnp paribas. yousef: appreciate some of those

reviews. our finance reporter there. i want to circle back to the market action as we prepare for the remainder of the trading day in asia and getting to the trading session in europe and the united states. equity futures, the nasdaq called a little lower, 1/5 of 1%. we saw big tech lifted some stocks as the reflation trade began to wane. $6 trillion in value added to the equity market this year. many of the former scenes appear to be fading for the moment. you had energy and cyclicals under pressure. u.s. 10 year yields at 48.16, largely unchanged. -- 1.4 816, largely unchanged. and brent crude is something to watch out for. dani: yes, and it says a lot about the cyclical trade, whether it can continue or not. yousef: coming up, we speak to the cofounder and ceo of a trailblazing startup capturing

carbon from the atmosphere, helping mitigate climate change. more on that next. this is bloomberg. ♪

yousef: good morning from bloomberg's middle eastern headquarters in dubai, i am yousef gamal el-din with dani burger, this is "bloomberg daybreak: europe." concerns grow over the delta variant as it europe risks another lost summer. stocks slip and the reflation trade beginning to fizzle. treasuries hold on yesterday's gains. payout on wall street, big banks boost returns to investors after

passing the fed stress test. plus, demand concerns, oil slips as opec-plus seen hiking outputs despite a stressed recovery. and overnight, facebook propelled tech giants higher. lower rates for longer. the conversation is back, growth at the forefront again, but how enduring and sustainable is that likely to be? gtv for clients. the $2 trillion club here, and the thing plus index at the highest -- the faang plus index at the highest since january. dani: it is interesting this is happening with regulatory concerns in the background. those concerns wiped away to some part for facebook with the monopoly case in the u.s. being dropped, but google, the u.s. justice department setting their sites after them. it is incredible this rally can continue.

is this priced in at all? to some degree it isn't but you see facebook pop when it wins its case. yousef: a little bit could be related to a safe haven trade, this could be investors going back to what works, now that a new wave of coronavirus is around the corner. dani: and these are cash rich companies. you look at apple's balance sheet, and it makes sense as a safety play. anyway, i do -- yousef: what are you looking at? dani: sorry to interrupt you. i think if we can track this idea yesterday of tech doing very well, this morning is a little different. we are pulling back slightly on nasdaq futures, down about 2/10 of a percent, that if you are having a little bit of reversal of the tech, we are looking at

european futures moving higher, still looks to be in with the yen outperforming the u.s. dollar. the yield curve picking up slightly after flattening to a large degree. i want to get onto another one of our main focuses, that is the green economy. we are move -- removing get -- removing a gigaton of carbon from the atmosphere by 2030 is no easy feat, but our next guest says her company can do it. thank you so much for joining us . this idea of carbon sequestration is not new, trying to store carbon. what exactly is different about your approach than what we are seeing out there? >> so it is incredibly tedious

to bring down carbon atoms from the atmosphere. that is why bio carbon is the way we can do it at scale already today. this is some of our carbon i brought with me this morning. we have a couple of advantages where nature does the heavy lifting, the capturing, and we transplant biomass into stable forms that remain stable 1000 years. we don't need expensive infrastructure to either grab the carbon from the atmosphere or heavy storing of it, we just need the technology to convert the carbon into a stable form. yousef: henrietta, give me a sense, and also for our global audience, and terms of where your ambitions are at at carbo culture. we understand you've secured initial funding. what will the leveling up look

like and how do you scale? henrietta: a great question. we are in early startup with big dreams. but going to scale is necessary, because we need to not just decarbonizing half of our omissions by 2030, but be able to remove up to 10 billion tons of carbon by 2050 to get to our net zero target and stay below safe amounts of warming. that is the reason companies like ours need to ramp up in the next decade. dani: what are the implications of having vc money in a cause that is obviously very good for the environment but maybe the financial aspect isn't the focus. how is it to have these worlds come together? henrietta: i think it is the world's biggest opportunity right now.

it is the world's biggest problem to solve and the markets are only growing every day. the carbon prices growing, demand is growing, so i think it is a brilliant market to get in, even if you are in venture capital. i think our investors are very happy to be in. [laughs] yousef: what more do you need from the government? they tried to be proactive. when you look at the landscape, where is there potential for revamped legislation and incentives? henrietta: great question. i think two things, on the demand side, government can be a long-term purchaser that is very secure for the companies. so long-term at a good price would help the startups, if there is demand. secondly coming from the loan and financing of heavy

infrastructure, project finances is hard to get in the early stages of a startup or doing something like we are. government act loans -- backed loans would be the key to getting off the ground faster. dani: for a lot of all street companies and large-cap companies around the world, eyeing carbon credits, these -- a buying carbon credits, the se things seem to be growing. but how effective are they? henrietta: the market has mostly to date compromised offsets that are merely carbon avoidance. the offsets over green -- are for green energy or something, but it does not remove emissio ns. we are selling carbon removal

credits, about 3% of voluntary markets today, about 3 million tons of carbon dioxide removal. that is everybody in the removal space. imagine that 3 million tons today needs to get to billions of tons in the coming decades. there is definite room for growth. yousef: henrietta, thank you for sharing ideas with us. henrietta moon, carbo culture ceo and founder. let's get the first word news. annabelle: a new study found mixing doses of covid vaccines from pfizer and astrazeneca creates a strong immune response. the university of oxford research could allow greater flex ability with scarce supplies. those who got pfizer sure -- shot followed by astrazeneca and vice versa had high quote -- quantities of antibodies.

president biden has defended airstrikes on iraq and syria. anthony blinken said this shows the u.s. will not hesitate to defend its interests in the middle east. 11 people are now confirmed dead in the collapse of a residential tower outside me -- outside miami. more than 100 people -- 150 people are still missing as rescuers come through the rubble. it is still a search and rescue operation but no one has been found alive since hours after the collapse. another company has created an exchange traded crypto fund. it would track the world's largest cryptocurrency as measured by the s&p bitcoin index. so far there are around 10 coin

etf's. 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. yousef? yousef: thank you. let's get a snapshot of what is around the corner. we will be talking about commodities because they are roaring back, assuming they were taking a break to begin with. it is making traders in hedge funds billions, but the world economy is recovering. how much more room does the boom have to run? that is next and we discussed the day's big take. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe," i am dani

burger with yousef gamal el-din. turning to commodities, steel and soy boeings -- soybeans back in fashion since before the financial crisis. despite wobbles in the market, it is bringing huge returns to hedge funds and traders, some talking about the emergence of the fifth commodity super cycle in modern history. as the world emerges from the pandemic, how much further does the boom have to run? joining us to answer some of those questions is will kennedy, our executive editor for energy and commodity of -- commodities. are we in a super cycle at this moment? will: the jury is out and i think there is a reason some people see a big boom of commodities as we come out of the come -- the pandemic.

the bloomberg index is a good way of tracking the commodities, and individual commodities, oil has gone from negative prices, very low prices just a year ago, now $75 per barrel. gold at a high. steel is extraordinary, and the u.s., steel prices have tripled this year. that is suggesting we are having a structural shift in commodities. but there is a key question, there are two reasons people think it might last, the energy transition that could make for long term demand for some materials like copper and steel. on the flipside, the energy transition also means investments in oil and coal is falling, driving those higher at the same time. yousef: as we count down to the

opec-plus meeting, the physical crude markets are screenings -- screaming for more supply. they are pretty deep in backwardation. i have always taken an issue with the word, it is weird but important for the markets. will: that's right. what it means is, as you say, traders putting a higher value on oil today than tomorrow. the market is short and it needs to take oil out of inventories, a contrast to a year ago where the signals were opposite. we are seeing inventories fall. oil has taken a bit of a fall. i think demand numbers and strong inventory draws suggest the market -- i think the only reason for caution is the delta variance. we've seen the news out of

australia and it is getting to countries that have so far kept the virus at a. i think some -- at bay. i think some traders could have a knock on in asia. but there probably needs to be a little more oil in the market to stop prices rising higher. dani: what do you think is the least prized in risk coming out of opec-plus tomorrow? what could happen that the market is not readily prepared for? will: i think there is an expectation they will put more oil in the market and i don't think that is a done deal. there is negotiation to come over the next few days. clearly we are seeing a pattern where russia perhaps is going to suggest putting more oil in the market, it wants to calm things down like saudi arabia and other positional members of the core opec group.

they may be more cautious and worried iran, the nuclear deal with iran, would lead to a flood of oil in the second half of this year. yousef: so much of what we have seen in commodities has been tied to the recovery of the chinese economy. the reality is, the last couple of weeks, chinese authorities have taken bolder steps to dampen the rally in some commodities good -- commodities. what is likely going to be the government's stance on this if we continue to see this super cycle, this bubbling up of important components of the bloomberg commodity index? will: it's an interesting part of the story. i think what you can say about chinese efforts to dampen this boom, the results are mixed and they have more leverage over some commodities than others. copper has retreated a bit because china has the ability to sell state reserves and really

-- that has dampened prices. you look at other commodities, iron ore is a good example, still trading above $200 per ton, which is historically is a very high price, and china cannot do much about that because it imports almost all of it from australia. if you look at:, -- at coal, it is a huge problem for the chinese economy. it remains extremely robust. i think the chinese efforts show two things, one that they are extremely concerned about what commodities moves could do to domestic economy, and inflation is always a sensitive issue. it also shows the limits of chinese power. yousef: will, great to see you. our bloomberg executive editor for energy and commodities, will kennedy. if you want to read today's big

take in full about the commodities boom, you can do that on your terminal. crews stocks -- cruise stocks fell after carnival announced a stock sale and trial sailing. the real caribbean ceo said most of the company ships are expected to be operating by year end after a 15 month shut down amid the pandemic. he sat down with bloomberg to discuss the opening. richard: we are requiring every member of our crew to be vaccinated and that is something we are looking at for our eventual return to the office for our employees. >> what about being able to mandate the people who come on board our too -- are too? richard: the good news is the vast book of our guest want to

be vaccinated. while we said we would accept people not vaccinated, we ended up with only 1% of everybody on board who has not been vaccinated. i think the process is working, the vast bulk of everybody is being val -- being vaccinated, and the vaccines are amazingly effective. >> carnival cruise lines looking for the full fleet to be operating by next spring. when are you looking at full capacity, full fleet? is it coming later than you might have wanted? richard: we are already 15 months later than i would have wanted, and it has been a long 15 months. but we are coming back very quickly. we have the first ship starting operating out of the u.s. we can operating abroad a while. this coming friday we will have the second ship operating out of the u.s. we feel it is important to get the flywheel going. we are constraining, choosing to

constrain capacity so we can learn, because we have to learn. our objective is to bring our ships back fairly quickly, and i would expect majority of our fleet to be back operating before the end of the year. >> have you had any staffing issues so far? richard: interestingly, as we know in the u.s., hospitality has had trouble getting people, but absolutely not. our people are so happy to be back. the welcome i received coming on board, the enthusiasm of the crew is amazing. we have problems because some of the countries we recruit from, such as india, have had outbreaks that put in place certain restrictions, but even overcoming those kinds of problems, our crew is so anxious to get back. we have already vaccinated 22,000 of them. it hasn't been an issue and we don't think it will be. >> enthusiasm from the employees

, and enthusiasm from the investor base. when can you reward them with a cash flow positive is this again, as hard as that might be at the moment when you are at 40% capacity? richard: we haven't made any public estimates on that so i can't talk about it here, but we have talked about the fact that our forward bookings, especially as you get into 2022 and 2023, have supported our view that people are desperate to get out of the house, get to do things. we are amazingly happy with our bookings for 2022 and 2023. dani: the royal caribbean ceo talking about people wanting to get out and doing things, don't we all. turning to china, xi jinping says the communist party must a true to its mission as they mark the 100th anniversary of the party. we will discuss that next. this is bloomberg. ♪

yousef: the chinese communist party was founded 100 years ago in shanghai, with president xi jinping leading events and celebrations across the country. for more, we are joined by philip from beijing. what were some of the highlights? philip: the main message that xi and the party are sending is that they are really good for china and they are the party that has had so much success building china and ling it into the world's second-largest economy. they are basically using this anniversary to say we deserve more time in charge. dani: any big announcements we are expecting? philip: thursday, we expect xi

to announce china has achieved this goal that has been around about four decades since they started reform and opening up, and the wording is a bit wonky, but that china has achieved the building of a moderately prosperous society. this is a goal that has been trotted out from leaders all the way through, and xi jinping seems set to say on thursday we have accomplished this in the party, and they will take credit for this accomplishment. dani: thank you so much for staying on top of this for us. the big question for markets is can the cyclicals trade come back and who will win, germany or england? yousef: i am going to say england will win. dani: i like it, i have to

support them, the home team. that is it for us, the european open is next. this is bloomberg. ♪

♪ anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards live in london. mark cudmore joins me in singapore to take us through all of the market action. the cash trade is less than an hour away. concerns grow over the delta area as europe risks another last summer. tech surges. facebook joins the trillion