anna: good morning from bloomberg's european headquarters in london. this is bloomberg daybreak: europe and these are the days top stories. .amazon fails to deliver the e-commerce giant plunges after missing estimates for the first time since 2018. u.s. futures slide. china snaps risk appetite in asia as investors dissect weaker crackdowns.

plus, bnp paribas's net income jumps. we will hear from the cfo. >> the levels of 2020 were extraordinarily high, so there is a reduction, and this reduction, what we are seeing is in line with what you see in the u.s. banks. anna: welcome to bloomberg daybreak europe. we have some numbers getting through. let's get to the bnp figures. we have a broader set of numbers for you. he was talking about what is going on. this has been a big trend, a bit of normalization into fixed income currencies. that seems to be the part of things for many businesses, but there are still dips as those -- there are still differences between those. the profit beating as the ceo is trying to rebuild the equities team after previous issues.

we will rebooting your more of the conversation. the revenue line strong, 1.7 8 billion euros against an estimate of 11.2 2 billion euros. a health business putting up numbers and we will speak to management later on. we are just getting a first look at what they are reporting right now. third-quarter adjusted through estimates coming in. that does seem to be better than previously. they now see comparable sales up 17% to 19%. they have given new guidance for the comparable sales and their adjusted eps. that is adding up to a raise in the forecasts. that is the headline coming through from siemens health and ears -- siemens healthineers.

let's recap because it is an interesting one. the numbers are much better. the share buyback is expected to begin in the fourth quarter. credit numbers coming through. second income net income better than anticipated. they are seeing full year 2021 social revenue in line with previous guidance. full-year adjusted rest below 40 basis points. they saw that previously below 60 basis points, so bringing down the cost of risk. interested to look at the way businesses have been handling that in the provisioning banks are having to do. we have got plenty to come in terms of our conversation around banks. we have unicredit in the news. that will be picked up later as well.

lots to look out for. in terms of the interviews and the guest who will be speaking, we will be talking to the cfo of natwest, allison rose. that is coming up in the next hour. we will also speak to the ceos of wholesome, edt, renault, and l'oreal. plenty more ceo interviews after two days of many ceo's coming to you here. let's get to the markets and check where we are on the data. we headlined that we had disappointing numbers coming through on amazon. they had rapid growth during the pandemic. now that does seem to be waning and any signal we are getting a slowdown in the tech sector is something that is taken badly by markets. nasdaq futures moving to the downside, down by 1.3%. european stocks futures a little bit weaker too, down by 0.8%. to underline the point about

china, we continue to be worried about the chinese clamped down's. that is weighing on the asia-pacific section, where we are seeing markets down by just over 1%. let's get into a conversation about what is driving these markets with our next guest. joining us is simon quijano evans. he joins us bright and early this morning on "daybreak: europe." let's think about what we have learned this week my and one of the big themes has been data out of the u.s.. one of my colleagues yesterday was saying the slight weakness we are seeing in some of the data come the gdp numbers, the jobless claims, perhaps we are back to thinking about the weakness in the data as a good thing for risk assets because maybe it means central banks can be more generous for longer. how do you assess the data we have had for the u.s. this week? guest: that is a very good point.

i think essentially what we are seeing is it is very difficult to forecast in this environment because of the low basis we had last year. it will be 6% or 8%. it will not make much difference. the same for inflation. we will see so much up and down on all kinds of data points, but eventually will come back to normal because the data points will be high. we will see things start to equilibria eigh and -- equilibriate. markets will be driven by that. if we look at u.s. treasury yields, in my opinion they are being driven by what is happening on the vaccine front in the short-term. anna: what does that mean for where the treasury yields go next? 1.4% is the u.s. 10 year. we have seen a lot of demand for treasuries, some say driven by

fears of the coronavirus and the lack of vaccine in certain regions. others say it is driven by technical factors. what do you think is driving that relatively low yields and how long will it stay there? guest: all those factors you mentioned, if we combine them, they are the major drivers. if we look ahead at the next six to 12 months, inflation is returning back to normal. mr. biden has this program now to pay people to have vaccines. we need to see a last push from governments to push these vaccinations through. although a lot of people do not want to receive them. on the u.s. treasury yields, the assumption is over the next six to 12 months we see them going higher again, and this is mainly on the u.s. 10-year treasury yields. the fed with that semantics, it is merely there to announce this

tapering in one of its statements. we have jackson hole at the end of august. there are going to be a number of points because the next team meeting is on the 22nd of september. what the fed has been doing is giving up a little bit of a break for the next 12 months. people need a break to get back to what is going to be an eventful q4. anna: you have been doing a deep dive into some of the numbers around vaccinations globally and you have interesting stats on how long it will take to vaccinate the world or provide some level of herd immunity. i hesitate to use that phrase because even in the u.k. where we have high levels of antibodies detected and reported levels of immunity through vaccinations and infections, it is not easy to control the virus even then. but it does produce -- reduce the hospitalizations and deaths. what kind of analysis have you been doing on how the globe charters a recovery from this? it is easy to do this in western

nations. how does the whole world get out of this? how long does it take? >> that is a very good point. at the moment, we are seeing 30 million vaccine doses being administered per day. if we go along these lines, it would take another 180 days to heard immunize -- to herd immunize the world. it depends on the age group. in the u.k., in the lower age groups, what we would need to see is vaccines being mass-produced. what i don't understand and no one has been able to answer this question is why governments have not been strategically placing facilities across the world to be able to reproduce these vaccines en masse? i think this will be the biggest challenge when we get to the g20 october summit. the fortunate thing is places like latin america have been receiving more vaccines.

it doesn't matter which vaccine. the main thing is to be vaccinated. we have seen the vaccines in south america reducing the infection rates. as we move into the summer months in the southern hemisphere, october, november, then g20 has the chance to make up for its failings of the last 12 months and get the southern hemisphere more vaccines and deliver those vaccines. anna: really interesting point you make. i spoke to the ceo of astrazeneca yesterday and he was saying the reason in his view that we have not seen faster production rollout globally is due to a shortage of skilled workforce that you need to go out and train people to produce the vaccines. that for him was one of the key stumbling blocks, which i think is a really interesting point. guest: how can we mass-produce huge weapons, tankers, cars, everything, you name it, highly sophisticated stuff? we cannot produce this? why is that the case?

anna: more conversation on that needed. simon quijano evans joining us. thank you for spending time with us here on the european open. -- on "bloomberg daybreak: europe." the fixed income currency and commodities appears lower, down over 40%. the latest ceo spoke with bloomberg. >> the levels of 2020 were extraordinarily high, and so there is a reduction, and this reduction, what we are seeing is in line with the european and u.s. banks. what is more important is by looking at that makes no sense. you have to look at the longer-term. you take the average quarter and it is basically up from 2018 to

2019, from 2020 two 2020 one -- from 2020 to 2021. it is on this trajectory where we grow above-average. reporter: revenues in domestic markets were up, including a strong rebound in france. are you concerned at all about the delta variant and the impact it could have on the recovery? >> if you look at the last quarters, the last four or five quarters, if you see the authorities have really stepped up the way of handling these kinds of elements, what one can anticipate is that will continue going forward. if you look at the second quarter of 2021, you see there is a way of stepping up the activity because the confinements that are required

are better and better managed. if you look at the second quarter, you see volumes going up. it is everywhere in europe. the volumes in payments are up, the corporates are up, digital transactions are up. this shows there is an overall way of handling through digital, the way of handling the vaccination, that we anticipate the rebound will crystallize. reporter: 50% of working from home will be there for the long term. >> it is something that we will launch after the summer. it will also be a way that people will have to adapt. just saying two and a half days, that is simple to say but you have to make sure the teams can catch up. there is some fine tuning that will have to happen.

it looks here to stay. reporter: do you believe that business travel will go back to pre-pandemic levels? >> it is a good question. i think the fact of new business travel today, that is not going to be sustainable because when you know people you can do things remotely. you and me, we have known each other for many years so we can do this remotely. however, if there is a new person or a new client, then it is useful to have this kind of reach out and you can discuss one-on-one with elements of support. i think business travel will pick up again. will it be at the same level it was? probably not. that is one of the things that will have to be ironed out. anna: they return to office and work from home, something many businesses are grappling with. bnp paribas cfo speaking to caroline connan. we well stick with the

earnings story. our guest will join us to discuss the outlook for the german medical technology company after the business raises forecast for the year. this is bloomberg. ♪

anna: this is "bloomberg daybreak: europe." i am anna edwards live in london. let's stick with the earnings story. siemens healthineers has raised its forecasts after a strong start to the year. the company says it sees sales up as much as 19%. the cfo at siemens healthineers joins us now. thank you for coming to talk to us on bloomberg tv. let me start with the guidance. you have raised your guidance. is it all to do with antigen testing kits for covid-19, or is something else happening as well?

guest: thanks for the question. antigen plays a role, but it is not everything. let me briefly touch on the quarter. we had a very strong quarter, kind of historic. we closed the deal and no one dropped the ball. that feeds perfectly into the race. we saw strong recovery from the pandemic and imaging, -- in the imaging, as well as the business in diagnostics and antigen test's. we expect to see a sharp drop, but for the year, we could raise that to one billion. this is part of the business. anna: let me touch on that

outlook for antigen testing kits. do you see the high demand for these trailing off, falling away? i think you suggested you would see a decline there. we spoke to the rush ceo in the earnings season and he was talking about in the second half of the year there would be a drop-off in the levels of testing, but it is hard to predict. some people are suggesting we may see more testing because instead of isolation there will have to be more testing going on as economies open up. guest: if you do the math, after an $18 million quarter, that is a sharp decline. but we always were throughout the year very cautious. but why do we believe it will be a sharp decline?

there will be a significant drop in demand on the one hand. secondly, there is another topic, a significant price rollback. this is not a high-tech business. this is a business where we have found very tricky partners. we supply the tests from our partners. we see more supply, less demand, and that is the reason. anna: how do you see the rest of your business performing? i am thinking about how normal the daily life in hospitals is right now, or how abnormal. do you see elective surgery returning to normal levels shortly? what is your expectation? guest: we have always looked at this topic and what we have seen relatively quickly is that our

customers were able to adapt in the hospitals, and in particular serious elective procedures came back relatively quickly. for those, our equipment and solutions are necessary. therefore, we see us pulling back to pre-pandemic levels in all areas across the world. when we look at the regional distribution, super comeback in the united states, which was a bit longer muted with the private sector nature of the business. anna: many businesses are struggling to work out what the work life looks like after a pandemic. how much are your people coming back to their workplaces? i wonder what criteria you are putting in place. are you insisting that staff are vaccinated? some u.s. businesses a little more vocal than europeans on

this. what are the siemens healthineers thinking? guest: we are a global business. we have a globally spread workforce and we have less than 20% of people in germany, more than 25% of people in the u.s. a significant number of people in china. it differs country by country, and we have to allow for that. there is no global rule. on the other hand, i believe talking about germany, we saw clearly the benefit of doing this business. no one would believe this without a crisis. we are slowly opening up the office, but now we have another opportunity or optionality of how to do the business. to be honest, the effectiveness and the efficiency of virtual conversations is really impressive.

it is an additional opportunity. anna: thanks very much for your thoughts. you can schmitz -- jochen schmitz. the pandemic boost phase as vaccinated choppers venture out a little more. we will speak with -- the e-commerce retailer predict slower growth. we will discuss. this is bloomberg. ♪

anna: this is "bloomberg daybreak: europe." i am anna edwards in london. amazon says it expects slower growth in the third quarter as the pandemic subsides. joining us is matthew bloxham. the highlight appears to be that the pandemic bump is fading. is that the case?

we don't seem to be able to hear matt block some, which is unfortunate. i checked in with him during the break.i could hear him then, but not now. matthew, thank you for attempting to join us. we will see if we can reestablish contact. let's take a look at what is going on in the markets because it is a busy day. it has been a busy week for earnings. there are a number of themes we will pick up on later that seem to be coming out clearly. one is around pricing power, the higher input costs that they are experiencing. the earnings story is part of what we are dealing with. but also the turmoil in the chinese markets. the hung -- the hang seng did not quite make it in the end. let's take a look at where we are on the markets because you add into that the amazon story, which we were hoping to get details on, but i can tell you

the story is that we are past the pandemic peak, it would seem, and that means we have a wobble in the nasdaq. nasdaq futures are down by 1.5%. a lot of that has to do with amazon. s&p futures down by 0.9%. european futures moved to the downside. you can see msci asia-pacific down by 1.3%. all of that because of the turmoil. that led to buying in markets. today, things look different after beijing was trying to relay those fears. we are back to selling. the shanghai composite down by 0.9%. we saw u.s. listed chinese stocks under pressure yesterday. it is this theme we will pick up on, on the other side of the break. investors grapple with a new

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♪ anna: good morning. i am anna edwards. this is "bloomberg daybreak: europe." amazon fails to deliver. the e-commerce trauma -- giant plunderers after missing estimates for the first time since 2018. china, a week of crackdowns. and plenty of earnings still to

come. we will be speaking to the ceos of netware, reynold, and others. let me get to the numbers coming through from renault. 23 point 4 billion euros, ahead of the estimate of 22.2. interesting to get any comments around chips. they are talking about the shortage production loss estimates, 200,000 cars. a focus on the chip shortage. it does seem to be taking its toll still. renault doubling its estimate for production lost to the global shortage. this remains a very live issue for the auto sector. how does that play into the broader french economy?

the french economy return to growth in the second quarter read at a pace said to accelerate over the summer as the government plans to lift nearly all covid-19 restrictions. the economy growing in the second quarter, business investment higher by 0.7%. we had 118 was the euro-dollar. very little movement as a result of the french number, much as estimated. i mentioned in our headlines, the turmoil in china. stocks closing the week on a down note. investors are grappling with the rapidly changing regulatory landscape. to the crackdown on private companies. even though beijing stepped into

markets yesterday, confidence has not recovered. joining us to discuss both the markets and the politics is juliette. let's come to you first. write down the market action for us -- break down the market action or us. >> what has been an incredibly volatile week. not helped by broker downgrades. bnp paribas downgrading stocks to neutral. all of this contributing as well to a lot of outflows rate have a look at my chart which shows chinese stocks listed in hong kong. the hang seng on track for the worst week and five years. if we see the level all little more, to be the worst in terms

of outflows in about 10 years. it is one of those things j.p. morgan has been warning about read not just retail, seeing these outflows would you look at the price action in particular, the cfi set a decline. teetering on a bear market did not even occur during the pandemic read we have been watching these big falls in the tech index. the yuan hit lows earlier in the week. if we can have a look at this chart, we have a great chart showing 10 year futures are at a high. money of course going out of the equity momentum and looking into some of the safer areas. anna: apologies for the no-show on the charts. we did put some graphics up.

we are seeing some selling of chinese stocks. slight technical issues. edwin, beijing -- what can we try next? we have heard some apparently reassuring voices. messaging in the newspapers talk about fiscal and monetary stimulus still present. what is going to be tried next? >> i think juliette painted a pretty dire picture. yesterday, there was a concerted effort to reassure investors the crack downs are targeted. they should not be seen as a water campaign. what investors have to watch out for is a counter indication by which i mean this is a sick all

of xi jinping -- signal of xi jinping's administration going after excesses in the private sector. in terms of what they could do next to reassure investors, i don't think anybody knows the answer. anna: there does seem to be -- and rightly, people are asking about how far-reaching this is going to be. we have seen it in real estate, and edging asian to knology. broadly speaking, technology does seem to be at the heart of this. what is the rationale that? >> it begin over nine months ago when we saw an ipo halted in its tracks. it is a question of control. a question of data.

a question of reining in social inequalities. these are powerful forces driving the chinese government read you have a lot of clients asking goldman sachs, is china basically in investable because of the uncertainty? anna: that is a big question. this business got itself caught up in this. they denied reports they want to go private. is this a likely step or similar companies under pressure mark are other companies -- under pressure? our other companies going to want to go i've it? >> it is in issue of u.s. chinese relations as well. there is some concern the listing environment and the u.s. will become so hostile, chinese firms would voluntarily

privatize. this predated dd. i think the main concern is washington's attitude towards chinese companies has reached a tipping point with didi. it was a 4.4 billion dollar ipo, the second largest chinese company debut in the street. anna: thank you very much. and juliette saly and singapore. let's get a first word news update. >> japan plans to expand its state of emergency to areas around oh and extent the and of august read that in the east of a record surge of virus cases. the country has suffered fewer covid deaths than any other g7

nation, but only about a border of the elation is vaccinated. officials overseeing the transition away from -- have endorsed a series of forward-looking benchmarks. it should pave the way to pave the way for the interest rates which are secured to secured overnight financing rates. it comes ahead of the deal to ditch libor. this is bloomberg. anna: thank you very much. coming up on this program, back to the earnings story. we will speak to the cfo of bristow group -- the austrian bank. we will get more next. this is bloomberg. ♪

anna: this is "bloomberg daybreak: europe." erste group has announced a dividend of one euro per share. that is after revenue for the fourth quarter came in above analyst estimates. it also cut its cost of risk for the year forecast written joining us is the ceo. you are bringing down the cost of risk in the right direction. give us a sense of what is moving and how ugly -- quickly. >> the risk has been coming down significantly following the pandemic of 2020. the rebound of the economy has been stronger than we expected. that is reflected in the benign

risk environment. delivering a good net profit for this quarter. anna: what can you talk about the broad macro environment? the rebound has been pretty strong. we have seen a rising rate environment. tell us how the macro picture is playing into your business read >> economy has been resilient. and should continue to rebound in 2021 and 2022. the gp growth rate is expected to be between 3.7% and 6.9%. with the typical leaders, the likes of the check public, romania, and hungary -- the czech republic, romania, and

leading. therefore, overall, we will expect and outperforming economic development compared to western endeavors. anna: let me ask you about your m and a plans. where are you looking for m&a is that this white -- point? >> we are interested to be in a role in the consolidation, countries where we are already operating. currently, there are opportunities popping up and hungary. ? -- in hungary. there will be opportunities and other countries czech republic. in general, we have been saying

during the rebound after the pandemic, at least until the end of the pandemic, there will be some consolidation and m&a activity. anna: how do you expect low locked revisions to develop? some governments work measures in the economies you operate in will fall off. i wonder whether that leaves customers and businesses vulnerable. how do you expect the provisioning story to develop? >> we have adjusted our guidance unless and 60 pages, to less than -- less then 30 basis points. should the environment keep up, we might be even a little lower. we should not ignore that.

how vaccination, we have been seeing a very good momentum for a while rate this includes some dangerous. we are optimistic over the second half of the year will be pretty good on risk. we expect less than 3% for the full year. something no one imagined route 2020. -- throughout 2020. anna: that is the sort of optimistic sure and -- picture and a very comforting picture. where does that the view on the capital side -- leave you on the capital side? is that payout -- how is that influencing what you want to pay out? >> absolutely right.

we expected that, that the ecb will leave this. it is the right time to go back to something like normal business and that is what we are doing. we have very strong capability and we have been announcing this morning going back to our progressive policy, meaning we want to grow step-by-step and reward our investors. this is what we have been announcing. 1.60 euro per share is the plan for 2021. going forward, it is extremely important for us to have a strong capability to finance our growth in the business. we want to deliver that.

anna: thank you so much. the erste group ceo. now to robinhood which according to the ipo, following eight cents below the initial price. the ceo spoke to bloomberg about the debut. >> it is really humbling that six short years after way launched our product, we have over 22 million customers read and we are on this journey, allowing them to participate. >> said he would allocate 20%-30 5% for robinhood's own users. still one of the biggest allocations ever. did you get to that number? are you concerned about volatility? >> we certainly are proud to

have on of the largest retail allocations ever. the way we think about it, it is a long-term focused company. we are making decisions, making big bets with the long-term interest of the business in mind. volatility comes and goes. we are not going to be commenting too much on daily actuations of the stock rice asked the movement -- retail meant, the meme stock movement, is a phenomenon. there are strong feelings about what robinhood represents. when he thick about gamestop, amc, due get worried about robinhood m&a target of its own users? -- becoming a target of its own users? >> we are not think it of what happens in the short term. the goal is to keep making great products, to keep improving the

service. we have seen finance become more important to read the retail investor become much more important. >> you live-streamed your roadshow to the public. you said more products are coming. maybe even retirement accounts like iras. >> one of the things we have been excited about is turning first time investors into long-term investors. we built on top of that. if you are a customer, you can in order to buy a particular stock or etf we are going to continue to invest in that. we would like to see a good portion of that the long-term investing in the future. anna: the robinhood ceo speaking

with emily chang. breaking news in terms of m&a. news around the french businessmen, the founder of iliad, making an offer to buy it at one .82 a share. we will expect to see a bit of a bounce. he does not already own the internet service provider. we will be back to the pandemic story. as shoppers venture out, that is where your nasdaq futures will be. we will get to that next. ♪

anna: this is bloomberg daybreak: europe. i am anna edwards. amazon says it expects slower sales growth as the boost from the pandemic sides. -- subsides. >> pretty sobering outlook. last order, sales of at her percent. this quarter, 27. next quarter, 16% growth rate sharp slowdown. people are out shopping in the real world again they should expect that to hit numbers for the next few quarters.

they cannot squeeze anything else. they are signaling there is great demand for labor. a bit of a squeeze on the profit and the revenue. anna: that is how the business is going to fair as we navigate the post-pandemic world read why are investors overlooking some of the better elements of this update? >> web services, the market leader doing incredibly well read that is a bit slower than what we are seeing from the two big rivals rate microsoft grew at about percent able have been concerned a while their market share lead is going to get eroded. it is still growing at an incredible rate. it is a bit of a knee-jerk to the slower growth overall.

as people dust off the numbers, become more mind will that is still incredibly strong growth. web services are still growing out of the well. you have advertising growth coming through strong, too. anna: the latest with the amazon numbers review can see the evidence of the post pandemic hangover. nasdaq teachers under usher. other markets down in sympathy. if we are going to see the strong growth have seen, business is benefiting from some elements of the pandemic. if that is the case, that is not something the nasdaq seems to take well. many futures down 0.9%.

the selloff will broader and asia. that is it "daybreak europe." this is bloomberg. ♪ (announcer) back pain hurts,

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>> good morning. welcome to bloomberg markets. i am anna edwards. mark joins us to take us all of the market action. amazon failed to deliver. the e-commerce giant plunges after meeting -- china/is risk appetite as