>> good morning from bloomberg's european headquarters where it is a 6:00 a.m. in the city of london. i am dani burger. this is "daybreak bloomberg," and here are today's top stories. the s&p 500 posting the biggest gains since march. asian and european futures track the rally higher. netflix forecasts another period

of sluggish earth despite a second quarter beat. plus a busy day for earnings here in europe. we will be speaking to the ceo's this hour. good morning. happy wednesday after a turnaround tuesday. what a roller coaster ride of a stock market action over the past two days to start this week. we have this big ounce back in equities so let's see where it is tracking so far this morning. msci asia pacific index higher by 1%. it is not as high as it was earlier this morning. some of the enthusiasm getting taken out of the market. we are looking at an american future session that is a bit weaker as well, down .2%. you are also looking at a u.s. 10 year yield and 30 year yield which is tracking lower. we have got a bunch of earnings hitting the wire. to get us through them, we have anna edwards, anchor of the

european market open. thank you for joining us this morning. i want to touch asml because it is breaking -- crossing the wire. they are seeing their net sales at 5.2 billion euros to 5.4 billion euros, exceeding the expectation that they had initially set. they will start a new share buybacks of 9 billion euros. gross margins basically in line with what expectations were for the third quarter so definitely that buyback moves will get investors excited. what are you seeing? anna: i am focused on novartis for the moment. we have q2 core eps coming in better than his updated -- than anticipated. it is expected to have a positive impact. they are not changing their guidance today. full year 2021 guidance is unchanged. they describe their q2

performance as strong. we are looking for some guidance around the ms treatment to see how that has performing. we will be speaking to the ceo who joins bloomberg tv to talk about the result and that is coming up later on today at 8:30 p.m. you have numbers in the banking sector as well. dani: we have had a lot of bank earnings and they have for the most part looked stronger in europe. julius baer announcing a strategy shift. they will be developing a real estate offer. it is all about cutting costs for the banks. they are seeing their net new money gain of 9.9 billion swiss franc, exceeding the estimates. we are seeing people pouring their money into the cash and equities sector. do not miss our interview with the ceo of julius baer.

he will be sitting down with my colleague and coanchor, manus cranny, in zurich later this hour so that is definitely one to keep an eye out on, anna. anna: let's get to the german tech giants and they are telling us this morning that their cloud revenues, 9.329 point $5 billion and this is for the full year. they had seen 9.229.5 so they are bringing -- 9.2 to 9.5 so this is a positive sign. the cloud push is accelerating and business travel is beginning to recover. does not feel that way sitting here in london but i know some people are traveling a little bit more than they were and we will be speaking to the ceo of s.a.p.. that is on the european market open so we will be conducting that at 7:00 this morning. dani: thank you so much. you can catch anna covering all

of these earnings. we have a whole host of ceo interviews in the european market open in the next hour so definitely stay tuned for that. that is our european market open anchor anna edwards. now to the nordic region's biggest tank which -- bank. commission income blowing past expectations. the bank is planning share buybacks in the fourth quarter and has started that application process. joining us now is the bank president and group ceo. thank you so much for joining us this morning. let's start with the highlights of these earnings. you have growth and revenue that was far greater than what was expected by analysts. what was driving them in the quarter? >> it was certainly a strong quarter. strong results with high income growth, as you said. he has risen by a significant

increase, gaining market shares and growing quite nicely within the area of mortgages, 6% year on year for countries in the nordic's delivering to that number and then it is an 8% increase in the lending testimonies and finally, increased by 24% to a record high of 387 billion euros so a high activity level. gaining market share. yet cost control. -- and getting cost control. it has led to a strong result. dani: let's pick apart that a little bit. what is the cost picture -- what does it look like going forward? what are you respecting cost to look like? frank: -- expecting cost to look like? frank: we are expecting it great

custom experiences and increase operational efficiency and increase operational efficiency in the company. the latter part is about keeping a firm handle. the costs and continuously trying to improve efficiency while we are growing the income lien and the equation will lead to a continued and improved cost income ratio. that is the expectation we have for the future. dani: you also started the application process for your buyback program. do you have any read on the sign of that program? frank: that, we are not disclosing yet. we have commenced the application process. we intend to start the buyback for women the quarter this year and that is what we tell the

market, and then we come back and we are having or when we have the approval. more about size and how to handle it. dani: let's speak about the approval. when it comes to dividends, it will put a cap on excessive payout. it's like that b gives a blanket cap or should they be treating banks according to regions and strength of the capital picture? frank: when i listen to the ecb and have dialogues with them, i that they are saying that they want to basically have it bank by bank and that is the way it should be done, in my opinion. and we changed our policy in the

fall of 2019 and came very strongly into the crisis, both within earnings, but also in capital position. so we are very well prepared to pay our dividend and start the buyback program, which we were planning to do already in 2019 and early 2020. so i welcome the way that the ecb is looking at its -- this question. dani: right, yes. exact. we will see what exactly the results of that ecb decision will be later in the year. frank, thank you so much for joining us. that is frank vang-jensen, bank president and group ceo. let's get over to the first word news with annabelle droulers. annabelle: hey. jamie dimon has been granted a payout to persuade him to stay

for a significant number of years. the stock appreciation was an estimated $50 million according to one estimate. jamie dimon, who has been the ceo since 2005 would need to stay for another five years in order to capture a profit. bird learned the u.s. and germany are close to a deal on the gas pipeline. under the draft agreement, germany would take unspecified acts russia if it tries to use energy as a weapon against ukraine. it confirms the decision marks a concession from chancellor angela merkel. the exodus of senior bankers from credit suisse continuing with more than ready now having left the bank. another four executives are said to be leaving as the lender reels from the aftermath of scandals. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. dani: annabelle droulers, thank you so much. just crossing the wire, we have some timely headlines coming out. they are cutting their full-year mercedes-benz car sales view on the chip shortage. previously, daimler had been pretty resistant, selling cars at a good pace despite the chip shortage, so clearly, that is starting to impact their sales number. they are seeing free cash flow below 2020 so that is there car unit sales forecasts being cut at daimler. coming up, we discuss the treasury rally which has -- we will get into the drivers in the bond market with the jp morgan fixed income cio. this is bloomberg. ♪

>> if you think 10,000 hours is what you need to master any subject, if someone comes in and has a regular eight hour job, five days a week, it will take about five years to have a baselevel mastery. on wall street, it's more like 12 hours a day, six days a week, and that could see you down to 2.5 years before you become mastered in something. dani: jp morgan's mary's speaking exclusively to bloomberg on getting into the office and working hard. we have seen in these markets, whether you have been working from home or at your desk, quite the roller coaster right thing over the last two days. check out the action in the 10 year yields. we started with a very dramatic drop and yesterday, at one point, yields dropping as low as 1.12. getting a little bit of bond

buying this morning so we are moving lower again. while equities reverse most of their moves on monday, we are still at a very low level here when it comes to the 10 year yields so let's try and make sense of all of this. to do that, joining us now is the jp morgan cio for fixed income. thank you so much for joining us, and what a perfect week to have you on given the price action. what do you make of all of it? what do you make of the change in the moves we have seen over the past couple days? >> i think this is not really something that has been happening over the past couple of days. we have been in this rally since the end of march and it definitely felt to us like it was very much a weighted money argument, just a huge amount of liquidity in the system and we have the quantitative easing programs from the federal reserve, the buying programs from the european central bank. banks are buying bonds as well

and it was really driving yields down. combine that with the fed to bit that happened at the june meeting and may be flexible average inflation targeting was not quite as a breast events people had felt and the bed was not going to let inflation get out of control which brought out the long end and effectively removed all of those reflation trade and that really i think was the main driver. it was very technically driven. monday was of course interesting because it darted to seep in from a fundamental standpoint because what you had seen is as you had seen yields come down, you saw everything else inflate as well so equities continue to hit all-time highs. it was not really a growth concern. monday hits and we have stocks off right definitely, credit spreads widening and a big reversal yesterday. it does still feel technically driven with just a lot of liquidity in the system, wanting to buy bonds. >> some of the extreme

positioning that drove some of those technicals, the extreme short buildup that had to get wash out of the system, could we still see some of those moves drive yields lower? -- >> some would indicate there positioning has been cleaned up to some extent. others show decent short positions that i would not say it is completely done. it does feel like it is a bit cleaner than it was over the last few months but i feel that there is a short base out there, but again, there is an argument from a valuation standpoint that the market has got a little bit stretched at the moment. we had a point yesterday. we are more focused on some of those long-term metrics so terminal rates pricing. if you look at the 10 year, one month, which is a good

indication of where the terminal rate can get to, we are down 1.6%, and we were at 2.5 at the end of march, well below what the federal reserve think the terminal rate is going to be so it does still, from a valuation standpoint, things are a little bit overbought at the moment. >> speaking of high valuations across the credit spectrum, where do you find income right now? iain: we would still gravitate towards the credit markets. we would still look at things like high yields, credits. we like some of the bain capital within europe. as we look forward, i do not think we cannot completely dismiss the delta variant and concerns around growth. we probably have had the peak growth in the second quarter. but the growth outlook still looks very positive as economies reopen and some of the underlying data that we are seeing out of the u.s. and europe, it all looks very healthy.

default rates in credit markets are collapsing, fundamentally very sound at the moment so although spreads are tight from a historical standpoint, we still feel that that is the place you want income. it is more of a carry gain rather than a capital game environment but if you are an income investor, you look at the 10 year, you would much rather by the high-yield market at around 4%. proxy mentioned default rates being really low and they have been pretty low given stimulus low rates over the past year despite the pandemic. where are we in this cycle? did we skip the default cycle? iain: yes. again, it is something we discuss a lot because it does feel like we have gone from early cycle to midcycle in the space of a matter of months compared to a matter of years. we have seen default rates go from around 6% down to 2% on a 12 month basis. it is likely to go lower.

most estimates with one handle. it does feel like we have really spent this situation up and a lot of it has been the support that companies have had, support that the central banks are providing and we have big this will supports as well, unprecedented monetary policy and unprecedented fiscal policy and it all bodes well for corporate health. dani: it also makes me think of delta airlines a couple days ago and some of the excess cash they had. they have been using that to pay off some of their debt which is a positive thing for their balance sheet and leverage picture but i am wondering how long will this debt picture -- the corporate debt picture linger on? we continue to have companies putting their cash to work in that way versus capital expenditures. iain: at the moment, until companies can get a clear picture of the outlooks and what is -- and what the next couple of years look like, one of their main priorities will be to get

leveraged down and it will be boosted in a couple of different ways because they have excess cash and they can tap some of their debt. also, earnings are expected to be very strong for the remainder of the year and that should bring that devils down. from a fundamentals standpoint, credit to us still does look very healthy. dani: got it. great catching up with you this morning. our thanks to iain stealey, cio for fixed income. we will discuss netflix and the slowest start to a year in almost a decade. we will break down second-quarter earnings from the streaming giant. that is next. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i am dani burger in london. after a bumper 2020 that sent its membership soaring, netflix says there is still plenty of room for growth and that is despite adding second-quarter earnings that saw its lowest start to a year -- slowest start to a year in a decade. we are joined by bloomberg takes alex webb. -- quicktake's alex webb. shares slumped after their earnings. they go on to recover but what do you think it was in the result that has begot punch negative reaction -- that got punch negative react -- gutpunch negative reaction? alex: they saw a decline in subscribers, the first time in two years. clearly a reflection after a bumper 2020. lockdown started to ease and people are spending less time at

home and have less need for netflix than they did 12 months ago so that is the kind of driving factor here. >> what is going to be the saving grace in these earnings. alex: if you look at the pandemic, two effects. firstly, it has obviously had an effect on demand. it had a sapping effect this year. it also had a production that you had not been able to produce all the shows they have wanted to produce over the past 12 to 18 months and that means that there is a huge pent-up production schedule which is now ramping up finally and as those new shows finish production and become broadcast, that will boost the man further. flix knows that the thing that attracts new subscribers is not new shows. it has not had as many hot new shows in the past sick month 12 months and therefore, as that

lag catches up with itself, that -- six months to 12 months and therefore, as that lag catches up with itself, at least optimism for investors. we do not quite know how that looks yet. dani: what about their international growth picture? that was a big drive and motivating factor for netflix to bring in more subscribers. do we have any read on how successful that has been? alex: the growth outside north america has very much been the saving grace as they continue to grow in the most recent quarter despite the declines in the u.s. and canada that we mentioned. that is a play of adding more international content which has been successful. we are starting to see the fact that in the u.s., netflix is the base. you had everything else that might interest you on top of it.

in foreign markets, the penetration of streaming is not as deep as it is in the u.s. and as that accelerates, netflix is managing to position itself as the base layer in europe and parts of africa where it is now active. it has proven a success and one of its big hit shows has been the french language heist thriller and that has been a hit internationally. dani: from personal experience, that is something i binged despite not being able to speak french at all. vanke you so much for joining us and going over those earnings figures from netflix. that is alex webb. coming up, we are in france as the plans to pressure its population to get vaccinated goes into effect. vaccine passports. these markets try and digest the growth outlooks picture as the

delta variant ways on -- weighs on the growth outlook. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot.

pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

dani: good morning from bloomberg's european headquarters, where it is 6:30 a.m. in the city of london. i am dani burger. this is "bloomberg daybreak: europe," and here are today's top stories. eyeing the dip -- buying the dip. s&p 500 posting the biggest gain since march. in european futures track the rally higher. streaming slowdown. netflix forecasts another period

of sluggish growth despite a second-quarter that beat. julius baer assets under management beat estimates. we speak with the ceo in a few minutes. good morning. happy wednesday. after a turnaround tuesday, it has been a roller coaster ride in these markets with american equities posting their best gains since march. when we are in a fed blackout period, we don't have a lot of economic data and it really is a market dominated by flows and the flows were buying the dip. that is what we saw across the equities space, especially in small caps. what really stuck out to me was one quote over at td ameritrade. he talked about buying the dip. he says it is like a football coach that runs the same play that keeps working and there's no reason to change that play. it is certainly working again. dip buyers out in full force. treasury market posting as big

of a reversal as we saw in the equity markets so still settling some pessimism shining through in your nominal yields. let's look at what markets are doing today. it is nearing its highs for the days, tracking some of that optimism in the american session yesterday. a little bit softer especially in the small caps that led gains. you have the u.s. 10 year yield at 121 and a 30 year yield at 186, both down by one basis point so far this morning. let's turn to france where today, the first part of emmanuel macron plan to pressure its population to become vaccinated goes live. it is required to entry for cultural ventures. it will be required for long-distance traveling, cafes, and restaurants. for more, we are joined by caroline connan in france. so far, what are the changes

taking place in france today? caroline: france is taking quite a radical approach when it comes to encouraging her to get vaccinated. officially after macron's tv address last week, -- qr code showing you either fully vaccinated or tested negative recently will be mandatory to access all cultural and leisure venues from today for everyone over the age of 12 and for any venue with a capacity of more than 50 people. these measures will come into effect today. the real challenge will come in august when a pass will be required to access restaurants, bars, long train journeys, visit people in hospitals, or -- and also, vaccination will or elderly people in hospitals and nursing homes. this will be from september.

things get complicated when you say it is the middle of the summer season. in france, people are starting to go on holidays. obviously, restaurant owners and people in the tourism industry have been protesting, using some demonstrations across the country last weekend. 100 thousand people demonstrating. globally, that is 60% of the french population in favor of this new requirement, especially at a time when the delta variant represents about 80% of new cases in france. yesterday in france, there were 80,000 cases compared to 7000 last week. dani: so how does that picture and the vaccine passports, some of these other implementations being put in, how does that compare elsewhere in europe? are we seeing germany or italy follow a similar path?

caroline: in germany, restrictions have been lifted but could be tightened again depending on the spread of the delta variant but interestingly, italy could actually follow france, taking a similar path. the italian government is debating whether they should also extend their scheme to restaurants and bars and train journeys. a decision could come in italy at the end of this week. some other european countries including portugal and greece have also introduced some qr codes. proof of vaccination to access restaurants. however, in germany, the german chancellor, angela merkel, for now, has ruled out making vaccination mandatory for those in contact with the public. clearly, one thing all these

countries have in common is they are watching very closely what is happening in the u.k. with the delta variant. dani: right and definitely interesting, all of this happening during the height of the summer holiday season. thank you so much. that is caroline connan. jeff bezos and three other passengers successfully pulled off blue origin's first crewed flight to space, a key milestone in the company's push to make space tourism viable. bezos described the experience to emily chang. emily: welcome back to earth. [laughter] how do you feel? my goodness. i mean, wow. this is your first interview since landing. we all want to know the reality of seeing the earth from above. did it live up to the dream? bezos: beyond. i am not talented enough to describe this in words. it was much more than i

expected. it is all inspiring. you have words? it was one of the most beautiful sites i have ever seen. emily: now that you are here, what is blue's next move? how does this fit into the long-term vision? jeff bezos: we are building an orbital vehicle called new glenn. new shepard is our sub-orbital tourism vehicle so we will fly that over and over and over and every time we buy it, it is practice for the orbital mission and it gives people a chance to see what we just, which is this fragile and beautiful earth that you cannot imagine -- people can tell you about it but until you see with your own eyes -- maybe we send a poet up or something. it is just this thing -- there's no boundaries, no national lines, nothing. earth's atmosphere is so big. we live in it. it seems gigantic when you get up there, it is actually this little that we need to protect

so i don't know, for me, it was definitely incredible. >> i was surprised at how easy it was to move around. that was the most surprising thing. >> it felt almost normal, like we were somehow involved to be in zero g, it felt so good. emily: for the people here on earth, talk to us about how you believe this will actually help benefit us here on earth. jeff bezos: what we are doing is building infrastructure. we are building a road space so future generations can build the future. we live on this get a, the most dutiful planet in the solar system by our, and we have to keep it safe and protect it and the way to do that is slowly, over decades, to move all heavy industry, all living industry, out into space and that is what we are going to do, so we can keep this planet the gem that it is. we need low cost spacecraft and to get that, we have to practice and that is what this is about. emily: we saw your kids greet

you on the ground. for the kids watching, how do you want this to inspire them? jeff bezos: kids are -- every kid has so much potential inside of them. what i hope that what we are doing a little bit -- we are unlocking that, so for kids everywhere, the way you unlock attentional is with inspiration. i was inspired as a little boy by the apollo astronauts and this is the next phase of commercial space allotment and i hope that inspires little kids, too. dani: jeff bezos describing the wonder and awe from traveling up to space. you have to wonder if that drove his donation to his charity organization. do not miss a bloomberg special on the space race. alix steel and ed ludlow will dive into the business of space. you can catch that from friday evening if you are in the u.s. or if you are here in london, you can see that saturday afternoon on bloomberg television and quicktake.

coming up, do not miss our interview with the ceo of julius baer. he will be sitting down with my daybreak europe coanchor, manus cranny, who is traveling. he is out in zurich. that is going to be next. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i am dani burger in london. julius baer reported its best first half on record as facing markets fueled income from fees and commissions. let's get to my daybreak europe coanchor, manus cranny, who is out. he has been traveling, bringing up all the most important bank interviews and he is alongside the julius baer ceo. hi, manus. manus: very good day to you.

another swiss bank another excellent set of results, records at that. philipp rickenbacher, great to see you in person. the holy grail or private banking and wealth management, isn't it? but record results. the market has all the data in front of them. you get some prudent guidance at the end of the first quarter. have you any sense or need to reiterate prudence? any slowdown? philipp: we came into 2020 without a crystal ball. our last conversation, we were discussing about how is client activity evolving? 2021 has surprised us. all the activity that is out there. we continued strong interest of clients in the market. we would apply the same proof going into 2021 and going into the second half. things in balance or in balance.

we have also a record earnings season. we have macroeconomic factors, diverging recovery curve now as many nations come out of the pandemic. there's plenty to go about with volatility but there is also caution. this is a time for active management. manus: is there a sense of foam a -- fomo? fear of missing out? philipp: clients, after these one year to two years, they have become very rational. they are looking for information yet they are looking to find the right cues. clients are very engaged and coming out of many discussion with our largest clients. manus: are they borrowing more, ready to take more? philipp: not extraordinary. we have seen after the deleveraging at the beginning of

2020. a real leverage and. we have not seen an excessive lending spree. i think people are conscious about how much leverage and risk they want to make. manus: that new money double to $10 billion. can you flesh that out for me? can that endure? philipp: it is within our old target range of 4% to 6%. even though we abandoned the external target, that shows the underlying power. we said explicitly that we want to tap into different sources of growth. i think that is working very well pit on the one side, working with existing clients. working with referrals and our client networks and expanding reach within networks and trying to tap into new clients. the third was the most difficult in a pandemic time. it is the one that has the most potential.

travel research and will ease off over the course of the next 12 months. manus: i endured four pcr tests, countless locator forms, etc. when i look at bonds, they are trading at 1.13%. a warning shout to me what did they say to you? -- to me. what do they say to you? philipp: i think there is a cautious stance now to the recovery pattern. not just that we can go back to party mode and hope that this pandemic crisis is over. i think we will be seeing badly diverging patterns over the next 12 to 18 months. there will be some countries with rate recovery rates. and others that will struggle much more, may be those that have been running container strategies will have a hard time getting out of this. i think that this is not over. manus: let's get your view on

inflation. little bit more enduring? philipp: i am in the first cap. there are base effect. i don't think this level of inflation is a cursor for a large inflation boost but obviously, one needs to watch this carefully. manus: can bond yields go lower? philipp: they always can but i'm not making any forecast on that. manus: the gloves are off. you are free to -- truly organic ceo. i am not active. the ban on mars transactions is done. is the usa top of your agenda to return to? philipp: i think growth is the top of our agenda are smart and profitable growth and this is the overall theme. there is a way of hiring relationship managers, something we have done at large-scale and something that can be redone and some geographies moving forward

and there is on the other side obviously the opportunity for acquisitions. we will see now that the pandemic over the course of the next one year to two years, more opportunities out there in the market. i think when you first look within our existing core markets, they also loosely have a wider radar screen across globe, understanding the untapped potential. i am always tempted by large markets with great profit. on the other side, it is a highly competitive market. and those decisions have to be taken very consciously. manus: you say that hiring is part of the strategy. where do you believe you will hire the most amount of people? philipp: i don't think i can give you a specific geography. we will continue to do so.

we found a great combination of offering on the one side a value proposition. i have seen great growth in brazil with a buildup of our advisory office. we made a big step forward on the hiring site. manus: you mean more into south america. what is the strongest one for you? philipp: germany, the u.k., the iberian peninsula, but we have many strong sources of rose across europe today. dani: you have a stick -- manus: you have a stake in the crypto bank. he has no fomo in regards to missing out on her. do you want to build that out? how do you build out the court though offering? philipp: there is a need to

really look into this because the technological advances in the gold of digital assets are incredibly vast and i must say i look at this from an almost amateur perspective but even talking to professionals, i hear from them that there are amazing things happening. there is a near-term element where it is about the painting in the economic potential and appreciation of certain assets with a very high-risk profile. let's be very clear. for me, the potential is much more in the longer term and what will happen around finance, programmable finance. smart contracts can raise some of the more cumbersome banking processes. this is where in five to 10 years, they should be looking for potential and we need to build capabilities for this today. manus: that announcement was made over the past couple of days but in terms of declines, we are hungry to know what clients are doing in crypto. what are they coming to you and asking you or perhaps that you mac at the moment?

philipp: they want to know. they want to understand. obviously, why is bitcoin moving up or down, as we have seen both this year, and they want to know the technicalities, sustainability of the proofing models in the crypto space. these are the conversations we can have from them in a very educated way. this whole asset classes is for client to make decisions on their own. they are not part of an asset allocation but let's see where this goes. dani: let's hope -- manus: let's hope that nobody kidnaps goldilocks. thank you so much for being with me and thanks for welcoming us into julius baer. that is the ceo at julius baer. another bullish call with a hint of caution. this fomo. do you miss me? dani: i miss you so much. i have so much fomo, i wish i could be there traveling with

you but really fascinating interviews. it is interesting to contrast that with yesterday's comments from ubs executives talking about more caution when it comes to clients over and we will stay on top of all of our european bank earnings this week. coming up, we will continue with european earnings which were getting into full swing and we will get into the key takeaways from this morning's reports, asml, daimler. we will have all of them for you. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i am dani burger in london. 6:50 a.m. it has been a busy morning, understatement for earnings in europe and european companies. he had daimler earlier this

morning, which has lower the sales outlook for main mercedes and luxury car division. it cited the global chip shortage and despite that, the second quarter revenue did come in better than expected. and in the semiconductor space, we heard from asml, and they are a giant increase in tales, and that is as demand keeps rising from its customers, who have been grappling with that ongoing supply shortage. the maker of the chip is planning a new share buybacks of as much as 9 billion euros, which always gets investors he excited when it comes to capital return plans. finally, we also had novartis reporting second-quarter estimates a -- profits ahead of estimates. they still see a slight impact on demand from covid. that is specifically going to be on oncology and some generic drugs as well though that is

mostly, this has been a market driven by flows. the flows have been dipped buying so looking at what markets are doing so far this morning, the ms diana shipping vic index out just .1%, struggling to match some of those really strong gains on wall street yesterday. the best gains since march. will we see that continue to go through? when it comes to the small-cap index, the dipped buyers have gone missing. maybe we will get it soon as we get closer to the u.s. open but so far, the russell 2000 down -- a 30 year yield at 1.8. your main equity future index benchmark in the u.s. is pre-much flat as europe is tracking higher by about .2% so you're up looking like it might outperform. even though we are looking at a small-cap index, we are still seeing some more of those value

weight type centers that are doing better in the premarket session so far so we will give some of those earnings were able to move the dial at all. that is it for "bloomberg daybreak: europe." the european open is up next with anna edwards and mark cudmore and they will take you through all the earnings. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london. mark cudmore is back with us in singapore to take us through all of the market action this hour. the cash trade is less than one hour away. here are your top headlines. stocks shrug off monday's rout with the s&p 500 posting the biggest gain since march. asia and european futures track the rally higher. streaming slowdown.

neli