♪ manus: good morning from dubai. i'm met manus cranny with rishaad salamat. it's bloomberg "daybreak: europe." beijing cracks down on education companies. traders are gearing up for more volatility amid rising virus cases. the s&p 500 hit another record on friday.

some corporate earnings, but futures are dipped to the red. and the result bonanza in europe roles in. we speak to the cfo, of ryanair. let's get straight to the agenda, rishaad. we've got corporate breaking across, a huge weekend in the united states of america. we've got the break on ryanair, first quarter loss after tax, $272.6 million. the loss was for $276 million. ryanair was saying that they are not in a position to give meaningful guidance. it's impossible to give guidance at this stage. first-quarter sales, $370.5 million. that is just a little bit ahead of the 300 623 $.7 million. wh -- $363.7 million.

you've got the beast of europe when it comes to electronics, diagnostics, and health. good morning, rishaad. rishaad: good morning, manus. good afternoon from hong kong. better than anticipated if you look at net revenues, very tiny beat, trading where ryanair was saying the outlook remains cloudy to some extent. it remains within guided range. just going on to say that tehir second-quarter sales, a .5% to the estimate, which was 8 -- 8.5% to the estimate. adjusted here, as well, the number, low to middle digit comp herbal sales growth, as well --

comparable sales growth, as well. we are looking at $532 million, slightly before the estimate at $535 million. that's what we have in terms of phillips. we'll be delving deep. cfo of ryanair, nails or hand, and the ceo of phillips. data, let's get straight to the markets and look at what's going on in this part of the world. hong kong and china markets are coming back after a torrid morning, education stocks really running to the downside after we had over the weekend this move by the chinese government to essentially ban for-profit education firms, sending many of these down 30% or more, band companies that teach school curriculums from making profits, raising capital, or going public. this is a broad set of reforms. it just is another blow here

taking place with some of these educational shares, tech oriented companies. it's a sector which has grown to $100 billion. companies really trying to seek parents needs to give children every advantage. this is what's going on, and regulatory overhang, which is very much at the fourth in this part of the world, particularly because in china, we saw it with alibaba with financial, and a swath of other companies, as well. let's have a look at what we've got with you, manus, as well. manus: yeah, well look, certainly the china story is one of the most read, but it sets up a very busy week for some of the biggest -- busiest -- the gdp data in the u.s. and in europe. and earnings will complement the chinese stories. what does she make of it?

texas investment management head of global strategy, you've got a lot to deal with today and for the rest of the week. let's just set the agenda with the chinese story. here we are. the chinese rip up, literally rip up the rulebook, banning making profits, banning raising capital, potentially banning companies from going public. how much of a worst-case scenario is this? >> so, it is getting worse in the sense that it is spreading and it is going beyond some of the pure technology companies. we're seeing this regulatory crackdown across broader sectors. and i think it might not be over. so, it's not quite worst-case, but it can continue. where it is difficult for investors is that there is just uncertainty about how much, how long this can last, how

far-reaching implications can be. but if you take a step back, definitely caution is the work for the moment. but -- word for the moment. but for a long-term perspective, as we get more clarity, i don't think we find select opportunities again for the long-term, i'm talking number of years. but in the short term, definitely a lot of hurdles for investors. rishaad: as the thing is, it's adding to regulatory overhang, regulatory uncertainty of what's happening in china, making it difficult for people to invest, getting jittery about it. how do you feel about that site and also thinking -- side, and also thinking, what is going on in leadership? what is this. designed to ferment? >> i think this is a question for emerging-market investors, when you think about how much china represents across indices, especially in the equity market. you cannot have an

emerging-market's view without having a china view, so it really becomes a question of being active, being selective, and picking and choosing the opportunities. and again, in the short-term, because there's such a cloud of uncertainty, we're going to see investors remain jittery and just not want to catch a falling knife and dive in today. from a policymaker perspective, they really feel like they want to be fair. they want to look at broad industries. there is a bit of a feeling that, regardless of what they do with the rest of the world, at the moment they're being painted as the bad guy. so why make the effort? let's let them clean up their backyard, if i can put it that way, bemoan some of the companies about working around the rules, trying to get offshore with some of the ipo's. and i think they probably see it as an opportunity that is a little more pain in the

short-term, but they really can set a more balanced seen for the long-term. -- scene for the long-term. manus: markets tend to overreach, don't they? they go into this because i antifa like to shock -- quasi- antifa electric shock. it is going to be a huge week, to say the least. can i get a sense of where you are in growth? i saw huge growth value, so huge amount of flow out of etf's from value. people are worried about these huge movements. what does that say to you as a phone manager? -- fund manager? esty: for me, a lot of it depends on your investment

horizons. if i'm thinking over the next few months, i'm thinking it presents an opportunity. we've pretty much gone from inflation fears to growth fears to delta variant fears and back a couple of times across all of these different elements. and in each case, we had that peak in this fear at some point. feels like we've had that peak on monday. a lot of the earnings were very strong, but the guidance did not mention covid or the variants. this is not a big worry for ceo's at the moment. again, it can deteriorate. but when you look at the past in the u.k., especially cases that started to roll over, potentially, still too early to tell, but it does look like we're seeing a mild improvement. and hospitalizations are going steady. if we move past these different fears, we're going to see growth is going to remain solid, especially in the united states.

so much savings, so much consumption, very little appetite for renewed block time -- renewed lockdown, very little appetite that might be smart to come, but could be difficult to -- given the polarization in the u.s. growth is going to remain solid, and that means markets are going to see that we're not in a sharp deceleration phase. the more cyclical elements are going to rebound again. rishaad: i want to bring this to the mliv question of the day we have. when will the debt field stock rally end? i'm sorry if that sounds like how long it's doing, essentially, but it's all about what the fed is saying and how the fed asked. -- acts is there. -- acts. is there no alternative trait? -- trade? esty: the short answer is yes.

we could see the fed delay tapering. i'm not sure it's going to happen. they probably announce something in september. they'll tell us this week they talked about it. they quarterly announce in september to start next year, and rate hikes are separate conversation, even further out because we have to get through, at the very least, all of 2022, and to see how earnings hold up by then, how covid fares by then, and then you think maybe they'll look at something probably second half of 2023. but it's a big if, with a lot of other factors. so for now, yes, there are not a lot of alternatives. i don't think yields are going to move up as much as the market thinks, but that might be another positive. from the starting point we're at today, it's not a very attractive proposition. so, we are seeing investors moving to less traditional asset classes that are becoming the new core. we're looking at private debt, private credit, infrastructure,

etc., real estate, of course. and i think we're going to see investors broaden their horizon. but the case for equities remains strong and i don't think that's going away. rishaad: thank you for joining us, esty dwek, head of global market strategy. she's talking about covid. let's get to covid in britain and the first word news with simone foxman. simone: hi, rish. the u.k. has reported a drop in new coronavirus cases for the fifth consecutive day. 29,000 new infections were recorded on sunday, down from more than 50,000 on july 17. however, any impact from last week's removal from restrictions is yet to be reflected in the data. the top u.s. infectious disease expert says the country is moving in the wrong direction in

combating a new wave of covid-19. anthony factory says with half of the country -- anthony found she says -- anthony fauci says with half the country not vaccinated, global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: simone, thank you very much. coming up, we start conversations in the earnings week. we have a ceo that joins rishaad and i, momentarily reporting earnings, probably in line with estimates this morning, and announced a 1.5 billion euro buyback program. this is bloomberg. ♪

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manus: its bloomberg "daybreak: europe." i'm manus cranny in dubai with my colleague, rishaad salamat, in hong kong. they come in roughly in line with the estimates. the company also announced a big red headline, 1.5 billion euros share buyback. let's get to a friend of the show. an award for shareholders, is this the start of a bigger program, and is this driven by the lack of opportunity to buy business? what's the motivation for the buyback? good morning. >> good morning. well, if i may, i would first like to point out that we saw strong growth in the quarter, 9%, and a nice profit expansion, so phillips is delivering on its guidance and we see a lot of customers signing up for

long-term strategic partnerships because they believe in our strategy. they want to invest in telehealth, in informatics, and improving health care around the world. our strategy is mainly focused on organic growth. we have also been doing acquisitions. just in this first quarter, we did two significant acquisitions by telemetry and capsule. we have integrated those. they are doing very well, strong double-digit growth. so it's all working out. at phillips, we have a balanced application policy. we would like to keep a balance between acquisitions, dividends, and also share buyback. so that is what we are announcing today, a new share buyback program for the next three years. and obviously, this is something you do when your share price is on the lower side rather than the higher side, so this is good timing to actually initiate such

a share buyback. rishaad: frans, surely as you're spending money you're hurting in the future with the share buyback, given that you have the appliances business of yours being up for sale. you announced that in march. how was i going? i think you said it was going to be closing in the third quarter. how close are you to doing that? are you on track? and of course, the 3 billion you received, one at -- 1.5 billion is being earmarked. frans: some people would say that some of the proceeds of the divestiture of domestic appliances was already spent on the acquisitions that we did in the first quarter. but even so, we are vain on track -- bang on track with the domestic entitlements business, and we are slated for closing in late q3 as we hand over the ownership of the business to

hillhouse capital. manus: so frans, obviously you've had some major issues in regards to the sleep apnea products. you made up a vision last month of 500 million euros. is that at the extreme, is that as bad as you think the litigation maybe in regards to the product recall that you have launched? is that extreme number? frans: yeah, it's good to talk about the sleep apnea device, therapy devices. many patients depend on this therapy and really, our focus is to help the patients as fast as we can because it's important to them. it's a very sizable field action in conjunction with that field's action, we have made the reservation of 500 million.

we are in active dialogue with regulators across the world. field safety notice is out. we are currently waiting for the approval of the repair and replace program, and we are all geared up. we have a lot of capacity on standby. and we start remediating the devices in the field. so, that is what the 500 million is for. it's our best estimate. it includes, of course, a massive retail communication to patients around the world. with regards to the word litigation, i think way too early. we will, of course, use all the data that we have to prove that, while this causes discomfort, it is not a ground for litigation. so, i don't want to speculate at this time on that at all. rishaad: frans, i want to give a

sense of your guidance now and look at two aspects of it. one is, how did you factor in inflation into that guided? the other is, how did you also factor in the uptick in the number of vaccinations against covid-19, as well, as more people get vaccinated? perhaps we will see hospitals buying more of your equipment as a result without being him struck. frans: yeah, it's a great question. actually, we raised our guidance back in april as we saw, let's say elective procedures, coming right back. currently, our cardiovascular elective procedures or above 2019 level. we can measure it up because of the devices we sell. we see also that hospitals are investing in capital equipment, diagnostic equipment, operating rooms. we also see strong interest in telehealth and data science as

covid has also proven that telehealth actually works, and that many consultations you can do remotely. now, all of these examples are spot on with the phillips strategy as we focus on providing solutions that improve health outcomes, improve productivity in the patient and staff's experience. we're trending well. we saw growth in diagnosis and treatment, and also the consumer health business is trending strong. now, we all do that, of course, in the context of covid. and i was listening to your program. i fully realize that we can see ups and downs as the pandemic evolves. but hospitals, as well as governments, are taking measures to shore up health care systems. we also see, for example, europe, issuing stockpile programs. so the near-term actually looks

good. we have raised our guidance to low to low-to-mid single-digit growth. and that is taking into account, let's say, they hit that we take on the sleep business, where, as we are focused on the field action, we will prioritize handling patient care. but even so, the other businesses are trending so strong that they compensate for that headwind. components is something that, of course, i understand you ask about. we are working closely with our suppliers. so far, we have been able to accommodate the step up in growth. but it remains an issue that we need to work hard. we do point out that, yeah, it's an issue that we need to manage. but at this time, certainly not a reason to change our guidance. manus: frans, how are you finding supply of labor to the business?

do you see a need to vaccinate or require all your staff to vaccinate at some stage? frans: well, you know, it's absolutely necessary that we all in the world get vaccinated. and i heard dr. fauci emphasize that you hear all the experts in the world -- manus: on your staff, frans. frans: yeah, absolutely, absolutely. it's very important. it's also important because it enables us to get back together. and for an innovation company, live interaction is so much more productive than only having zoom or teams meetings. so, it's important that we do get vaccinated. in the same applies to our staff, and we have an active callout to all of them to be part of the vaccination program. rishaad: frans, thank you so

much for joining us. frans van houtman, phillips chief executive. we're going to be speaking to the chief financial officer of reiner. that was a short while ago -- of ryanair. that was a short while ago. this is bloomberg. ♪

♪ rishaad: welcome back to "daybreak: europe." i'm rishaad salamat in hong kong with manus cranny in dubai. the country announced a broad set of reforms for private education companies. they're seeking to decrease workloads for students that they say have been hijacked by capital. levels we haven't seen since july 27th last year. we've got the likes of these education companies being absolutely spanked, down by

about 40%. we're looking at companies invested in them, tencent 7% down. , coming up, we're speaking with the cfo from ryanair as they came out with a first

>> good morning from dubai. i am manus cranny with rishaad salamat. these are the stories setting your agenda. china drives market sentiment. the hang seng and the sii slump as beijing cracked down companies. traders with induced volatility. the s&p 500 hit yet another record.

strong corporate earnings drive the market. the results bonanza continues in europe. we get set to speak to the cfo of ryanair. i am working from home. as we look at these markets, no doubt about it, it is china angst about resetting the agenda in the education space, which has gripped the market despite the record highs that were delivered by the s&p 500 at the end of last week on an intraday basis but it is about the flow. money has come out of value and gone into growth. the grab at capital by the chinese authority is unsettling the markets but not unseating the markets, is it? rishaad: these declines we are seeing are actually being exacerbated this afternoon after a torrid morning of it. we have seen a 6% plus while back taking place for the hang seng tech index.

it is about the reverberations from this move on these education companies affecting some of the tech diets such as alibaba and 10, down 5% and 7% respectively, driving them down, and as a result, seeing this regulatory overhang problem clouding things and turning any bulls into bears if that's even possible. manus: you look at u.s. equity futures, down .5%, not exactly tracking. let's pivot back to you, europe's biggest discount carrier, ryanair. they had a smaller than expected loss in the first quarter, fiscal first quarter, and they are aiming to make a profit on the summer. rebound and travel holiday. let's get to the cfo. he promised the market you will make a profit. what is the single biggest thing that needs to happen for you to hit profit? is it that the u.k. needs t

allow people in who have been vaccinated outside of the u.k.? at the moment, it is a political decision, pragmatic decision to ban anyone who has been vaccinated elsewhere. is that what needs to happen for you to make a profit this fiscal year? good morning. >> good morning. a slightly smaller than expected result from the first quarter this year. we would anticipate we would make profits over the second quarter this year. we are seeing a great research in bookings since the e.u. -- a lot of confidence. we would anticipate that this would feed into the second quarter. i would like to see a little bit more confidence in the u.k.. it is rumored that france will go off of the amber list into the green list in the next week or two. confidence is rising in the united kingdom.

80% of the population is vaccinated. europe has done a very good job catching up and again, a huge resurgence in bookings over the past number of weeks, particularly as the digital covid certificate has been rolled out. rishaad: can you give me a sense -- you talk about the ticket sales as well but what are we looking at in terms of yields? what are we looking at in terms of load factors? and fleet utilization? >> it is heavily utilized at this point in time. we took of you early on during the covid crisis to make sure that all our pilots, cabin crew, and aircraft remain current, which meant we have been able to come back faster than any of the other airlines in the low-cost space. we carried a .1 million passengers. close to 30 million in the next quarter.

load factors were 73%. we anticipate over the course of our financial year, which runs out in march of next year, we will see -- low 90's over the course of the year. our strategy will remain passive so our policy is to fill the aircraft. i think it will be great value for people traveling this summer. fares will likely remain below pre-covid levels p it on the other side of our revenue line, auxiliaries have performed very well. -- levels. on the other side of our revenue line, exhilarate have performed very well. we would hope we would continue to see the strong performance throughout the rest of the year on the auxiliary line. manus: where have the strongest market been for you on the intra-european network and what

kind of load factors are you achieving on those where you say you have the e.u. passport, it is working, and it is working well, people tell me. i have just come back from europe ended is inaction. -- and it is in action. neil: germany is very strong. ireland has started to pick up with the rollout of digital certificates. that is starting to ramp up. you know, it is relatively good across most of europe. the u.k. has lagged a little bit because of the uncertainty around amber and green but lots of pent-up demand. we had a busy weekend. lots of traveling on the weekend. we anticipate a strong week this week out of the u.k. and across europe so it is pretty good. we are across 27 different

countries in europe then we see a relatively strong demand and bounceback, which is not to be unexpected. we have seen what happened for example in the united states where domestic flying in the u.s. is now, talking to my colleagues's there, ahead of where it was pre-pandemic. that pent-up demand is finding its way back in looking's. -- bookings. rishaad: fuel prices. how are you dealing with a higher oil price right now? how are you hedging and what price have you hedged at for aviation fuel? neil: a little bit more cautious in our hedging. we are 60% hedge. the current financial year is 506 $25 a metric ton which is below the -- this morning. we are 35% hedged into next year, close to $600 a ton, so we

are cautiously putting some cover in place. we are well hedged when it comes to carbon, 100% hedged as opposed to 50%. a lot of our competitors are not hedging at this point in time so from a -- we are in a somewhat better position than the rest of the market. manus: can i return to the single biggest factor, which is both political and pragmatic? you can return from a amber countries into the u.k. with no corn -- from amber countries into the u.k. as long as you are vaccinated within the nhs. how much of a capacity change and business change will it make to ryanair if that changes in the u.k. accepts vaccines from outside the nhs system? neil: it will not be a capacity

issue. it will be higher load factor. you will see it increase and hopefully towards the 90's towards the back end of this year. we have got most of our capacity flying at this point in time and we have it very well -- across our networks. rishaad: when we look at this, where are your opportunities to expand now? you say you are nimble enough to do so. so what has covid done in terms of throwing up opportunities in places where perhaps you were not looking before that you are looking at now? neil: phenomenal and we have got the game changer aircraft coming in, 60 of those. before summer of next year, 210 over the next four years to five years, a massive opportunity.

a lot of airports not only looking for growth but restoration of traffic. i think you can see that in what we have announced this year. a number of new markets and deepen into existing markets. very hungry for our traffic up there now. we have denmark, increased capacity significantly in helsinki. we are growing in italy. we are already the number one carrier on the back of alitalia. we doubled our capacity in rome. we have expectations we will do a lot more in portugal. we are one of the largest carriers on the back of tap, pulling out capacity, and getting opportunities in central and eastern europe with our new base in riga.

lots of opportunities all across europe and we anticipate we will see more of those. manus: you mentioned earlier that the demand will come and that will be followed by the price rises. with writing in the market, when can you realistically get back to a more normal pricing schedule? if you have 80% to 90% on some of those u.k./european roots, do you think you can get to normalized pricing by the end of the second quarter? neil: manus, the booking curve is very close and our object is to know the aircraft, get people back flying, give growth to our airports across europe, so we will continue to have attractive fares for customers this summer. the ancillaries will continue to do well. when we get into the fourth quarter, summer of 2022, i think

you will see a rebound. rishaad: neil sorahan, thank you so much for joining us, the ryanair chief financial officer. let's have a look at geopolitics . beijing and washington actually talking. let's get the first word news with simone foxman. ramon: -- simone: china says relations with the u.s. are in stalemate in a tense start to high-level talks. vice foreign minister told visiting deputy secretary of state wendi sherman at some americans seek to portray china as an imagined enemy. it is the highest level of face-to-face meeting between the two sides march. tunisia's president fired the country's prime minister and frozen parliament. according to sky news, he was removed after a weekend of protest with tunisia facing one

of africa's worst cobit outbreaks. he was sworn in one year ago in deep political and economic turmoil. six chinese listed companies have made exchange filings after beijing cracked down on for-profit afterschool tutoring. the company has vowed compliance while evaluating the downside risks to their businesses. beijing unveiled a sweeping overhaul of its education tech sector over the weekend, banning companies teaching the school curriculum from turning a profit, raising capital, or going public. 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. manus. manus: simone, thank you very much. simone foxman with the very latest headlines. silicon valley. we will bring you the very

latest interview with the spanish prime minister as he looks to drum up tech investment. this is bloomberg. ♪

rishaad: we are back. this is "daybreak europe." i am rishaad salamat in hong kong with manus cranny in dubai. the spanish prime minister wrapped up a three-day tour of the u.s. west coast. he met tim cup as well as executives from companies like intel, paypal, and even zoom, to drum up tech investment. he spoke with emily chang and they started off by talking about the coronavirus situation in europe. pedro: you know what happens in spain? it's very positive. which is that we don't find any

kind of rejection from our population regarding vaccines. this week, we reached 52% of our total population that is fully vaccinated and we expect before the end of the summer to have 70% of our population fully vaccinated. we are now starting to vaccinate the youth because we focus in the beginning of this vaccination campaign, you know, the people which ages, you know, they are older and of course, most vulnerable to covid, so you know, we are expecting a new phase in our fight against covid . and thanks to vaccines and the vaccination campaign, and thanks mainly to our population, we are, you know, beating up day by day our vaccination campaigns so we are very positive and i am very optimistic about, you know,

the situation that we will face regarding the covid in september. one thing that i am really proud of spain is that during this last academic year, we kept open 99.5% of our classrooms. so this was something, you know, incredible. compared to other countries, you know, unfortunately, they had to close schools, but we kept open our schools by 99.5% during this last academic year and i am so proud of it. emily: interesting. as a mother of four, that is interesting to your and i also appreciate -- to hear and i also appreciate hearing the stats on the vaccination rates. we started with apple and i want to end there. apple is investing in artificial intelligence in the country. i am curious if you can share any more information about

apple's strategy in spain. they have a huge presence across europe, but what more should we expect to see from apple in your country? emily: we expect -- pm sanchez: we expect to have an increased investment of apple in spain in the coming years in these two fields. first of all, artificial intelligence. since we have this huge bet on converting spain to see apple tv also committed with my country, with spain -- but you know, all the conversations i have had with global companies that i had, the insides -- insights and the feeling i got is that they count on spain. they see that spain is a safe country with a good quality of life, and of worst, affordable

and competitive in prices. so i think that we have a great opportunity for both, for the spanish government, for my country, and also for all these foreign investors and companies. manus: the spanish prime minister, pedro sanchez, speaking to emily chang. coming up on the show, permission for payouts. the ecb says it will lift its cap on bank evidence and buybacks but urges the institutions to remain cautious. more on the week of earnings ahead here in europe. this is bloomberg. ♪

manus: this is "daybreak europe ."

i am manus cranny in dubai with rishaad salamat in hong kong at our asian headquarters. to the other major stories this week, it is all about banking as the ecb, european central bank, lifts the cap on dividends and share buybacks. they are urging the sector to remain cautious given the uncertainty of the pandemic. this comes as we start a busy week for earnings. we have had ubs, barclays, santander, credit suisse, and many more. it seems as if we have shifted on the language. let's get to our deals reporter, the bella ahmed -- nabila ahmed. it is a separate committee to the rates committee at the ecb that decides what happens with bank dividends. what do we know about the shift? we have this earnings season kicking off. what can we expect this week from the european peers? nabila: on the point of the ecb,

manus, obviously, they came out on friday and said they decided not to extend beyond september the recommendation that all banks limit dividends. that is going to come as good news for shareholders. all the wall street banks have been unshackled from this a couple of months ago and they have started to outline their plans for capital management so this will be good for investors. we know the top 10 european banks have around about $22 billion of excess capital that they could potentially give away. rishaad: let's have a look at credit suisse. there could be some good news for long-suffering shareholders. will there be any given what happened with archegos? nabila: rishaad, that is the big question. analysts have lifted their eps estimates for most of the european banks.

unfortunately, credit suisse was not one of them. they were the only european bank to have their eps estimates cut. that does not bode very well for the bank. they already lost $5 billion already in the archegos saga. we know that several dozens of senior people have left the bank and investors are going to be looking for clues as to whether the defections are starting to flow through to the bottom line. and what a potential restructure of the bank might look like. rishaad: thank you so much, nabila ahmed from sydney. let's have a look at some of the main events we are watching out for this week. another big one for earnings. we just talked about banks as well. tesla is out with its second-quarter results. the big focus will be on the companies sales in china -- company's sales in china. apple and alphabet out with

their numbers as well. we are focused on the federal reserve on wednesday. the pace of its bond buying program certainly in focus at the meeting of the federal open markets committee. manus: i think we will spend a week talking about rates and when that first rate hike might come. also a big day for the european banks as we have been saying. deutsche bank, barclays, let's see what their equities to fixed income and merger and acquisition business looks like. thursday, keep an eye on amazon for the second quarter numbers which nicely takes in part what is going on with bitcoin. absolutely flying high this morning, up for six days in a row. in part, it is because of amazon. we have this story that they are looking for a new digital payment lead. the speculation that amazon may well indeed accept general coins

as payment. elon musk saying he wants it to succeed and spacex owns a little bit of bitcoin and kathy would says organization should consider adding bitcoin to the balance sheets. pleasure to be with you. rishaad working from home today. the european market open is up next.

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>> good morning. welcome to "bloomberg markets: european open." mark cudmore joins me in singapore to take us through all of the market action. the cash trade is less than one hour away. china drives market sentiment. the hang seng and yes i slump as beijing cranks down on education companies. traders are gearing up for more fed induced volatility amid