manus: good morning from dubai. i'm manus cranny. dani burger up me in london. daybreak: europe. u.s. virologists and warned of the threshold for herd immunity could be well over the 80% level. tech crackdown takes its toll. alibaba misses its numbers for

the first time in two years, but beijing softened the tone on gaming. less, more key interviews, starting with siemens energy this hour. dani, breaking news from commerzbank. the germans have underwhelmed at commerzbank. 1.8 6 billion. the market was for 1.9 4 billion. -- 1.9 4 billion -- 1.94 billion. is that disappointing? second-quarter revenue is a miss. operating profit at $32 million. the estimate was for $113 million. when it comes to smart investors and hedge funds, what have you got at dam? >> they are seeing asset management rise one point 2% quarter over quarter, so they are seeing a u.n -- aum at 126

billion for spring. they did see net outflows in their investment management of $2 -- $2.2 billion. maybe they can stem the flows. manus: i caught up with a new ceo. for your lamaze position, provision will be below one billion. the operational cost will be $6.5 billion. dani, i leave you with this. they will associate positive result at the operating level. that is the latest for commerzbank. dani: i am also seeing net interest income coming in basically bang in line. you have been covering a lot of bank earnings. certainly people want to see outperformance. manus: they do indeed. technology has a moment of reprieve in asia. the question is, where are we in

that cycle? >> it is quite the rotation we are seeing in terms of fear and loathing. yes, we are seeing a bounce, but is it a dead cat bounce? a little bit of bond buying, but at the same time, oil, manus, i know you are always on top of it , hanging around $70 a barrel when it comes to wti. our growth concerns hanging on? speaking of, china really in the focus here. it is the climbdown of the tech sector along with the spread of the delta variant subduing sentiment. chinese stocks listed in the u.s. overnight amid fears -- lifted in the u.s. overnight amid fears that online gaming could be the next industry in the crosshairs. another sign the regulatory crackdown is taking its toll is alibaba. growth slowed in most of the tech giant's major divisions, from cloud to e-commerce, really underlying fears over the mounting list of new government regulations. let's get into those more with

our stephen engle, bloomberg's chief north asia correspondent. stuck with alibaba -- start with alibaba. how is that country's leadership receiving the new government policies that they have had to digest pretty quickly? stephen: they are keeping their heads low, trying to go about filling the rectification's. this all blew up with alibaba as the poster child at the beginning of all these new regulations in china. they have not been able to get out underneath it. in the previous quarter, they had the big $2.8 million fine and posted a loss. they returned to profitability in this recent quarter, however, revenue in its key division, namely e-commerce and the cloud, missed expectations for the first time in a couple of years. they have not been able to necessarily get momentum. there is a new outbreak of covid.

there is also increased competition from the likes of others. alibaba is going to probably feel the pain going forward. one good sign, according to investors, they are spending and are buying back their shares. the share buybacks are going to increase by 50% to $15 billion. manus: i wonder if that is just a sore foot -- just to sort of soft and the blow. what will demonstrate to authorities that these internet giants and media companies are coming into line? yesterday we talked about the spiritual opium and the market imploded, which was about the gaming companies. has there been a shift? has there been a walking back? how substantial has it been? stephen: i think there is just a softening of the tone because there was a chart rebuke of the markets, tencent taking it on the chin. if you look at tencent, one of

their key divisions is gaming. if you are going to hammer this -- and there has been a bit of jawboning by the government and state media on this, the moral hazards of the gaming industry on kids for several years now, and there have been rectification's internally in terms of tencent. but now we seem to be another whack-a-mole thing for investors to pay attention to, and that is if there is going to be an outright ban for gaming for kids below 10 years old. they are already talking about limiting kids' gaming hours low 18. great research on the bloomberg terminal overnight saying 6% of tencent's revenue comes from its 16 years or younger. this is a longer-term challenge for tencent and others, but perhaps short-term on the bottom line and on revenue might not be a big hit. manus: steve, thank you very

much. our chief north asian correspondent putting the revenue lines in perspective. let's get to our guest this morning, anna stupnytska, fidelity investment global macro economist. this is the moment where we need to define whether we have moved from euphoria to risk aversion. more importantly, i want your take. are we looking at a policy mistake, which is good social governance from china? good morning. anna: good morning. i think this is clearly a more structural change and something we need to bear in mind when we think about china in general and china assets. i think that the signals that policy might be eased over the next few months, those signals have worsened and advocated --

it is about the negative credit impulse and the flow down back to what we are seeing the pmi. dani: on that note, we saw goldman and amira downgrade their third-quarter outlook for the chinese economy. has your take an expectation for the economy changed? anna: i do think growth in china is to the downside. with the spread of the delta variant and the potential for further lockdowns, there is still a low rate of vaccination, it means that, i think, china growth is going to slow down more than expected. overall global growth is slowly picking up right now. we are looking at a negative second derivative going into the

end of the year. manus: there are two things that flow out of that. one, the hyperbole around inflation coming from china, that is global .1. but global point two is about the contagions affect. if china slows or goes into a quasi-soft landing, that has a global repercussion. take me through the consequences of the second round derivatives of what you just laid out. anna: i think china growth matters a lot for global growth. it matters most for the region. we are cautious in the region. we are going to watch for spillover. i think the asia region generally is not very well positioned in terms of looking ahead. the vaccination rates have been slow, so the country cannot open up, and that dropped from the

delta variant will remain in the system for a while. overall, we do think global growth is to the downside not just from china, but also from the rest of emerging markets. dani: what, though, specifically is the transition can is in? to manus's point, the contagion -- what specifically would you be looking at for fear that it catches on to some of the weakness we are seeing in china? anna: i think the main transmission channels, trades, supplies, supply chains, and the financial channels. financial conditions overall are still quite easy, particularly in the u.s., which is encouraging for global growth. in china, we have seen

tightening of financial conditions. to the extent that that spills into growth in china and the world. that is something we need to monitor. of course, the actual trade and consumer demand in china. if we see lockdowns, it will weigh on demand, on services in particular, and that is spreading to the region and potentially the rest of the world. of course, we do have the u.s. and most of the developed world still growing, even though it is going to be much lower than in the first half. dani: we will get into that u.s. conversation in just a bit. you're going to stick around with us. that's get to the first word news with annabelle droulers. >> a shipping incident to the gulf of oman, halfway between iran and the united arab emirates, is a potential

hijacked him according to the uk's marine trade operations, which monitors shipping in the region. last week, and israeli operator tank was hijacked or hit by a drone attack in roughly the same area, killing two crewmembers. iran was blamed by the west. president biden, along with other top democrats, are calling on new york governor andrew cuomo to resign after a state report found he sexually harassed multiple women and violated federal and state laws. the state attorney general says cuomo and his staff retaliated against at least one former employee for coming forward. cuomo denies the accusations. >> are you calling on him to resign? pres. biden: yes. >> if he does not, should he be impeached and removed? pres. biden: let us take one thing at a time. i think you should resign. -- he should resign. >> global news, 24 hours a day,

on-air and at bloomberg quicktake, powered by 27 hundred journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. one very important line from commerzbank. they are actually seeing full-year at 13%. they last saw that at 12%. this is about building the buffers of capital. that is important for the market to take on board. coming up, fed officials weigh in against another fed voice. we are ready for the jobs report . mary daly, what is your take? ♪

>> demand has significantly increased, so while the u.s. is closed to europe and the u.k.,

u.s. citizens can travel freely. i am actually quite glad that the eu and u.k. have opened up but not demanded the u.s. reciprocate. i think that will take time, but i do believe we will get there. we expect business travel to recover, but to lag the recovery in leisure travel. i think there is some degree of acceptance now that business travel may not recover at the same levels as 2019, but i do not think it will be as impacted as some people believe as a result of technology. dani: willie walsh on the return to international travel. stay with the recovery picture. more fed officials are weighing in on that. mary daly says there is no reason to not expect all 10 million americans currently out of work to return to the labor market over time.

what does that mean? let's get with our best, anna stupnytska with fidelity international. it is the supply side of the labor picture that continues to vex both economists and these markets. do you see that sorting itself out? -- when do you see that sorting itself out? anna: i think it will take another few months. the stock markets might be skewing those numbers and the willingness turn to work, in september, there will be more people returning to work and taking up jobs, which might relieve pressure on wage growth. we do accept the tensions of the labor market to continue over the next two months. we are also observing the increased inland wage level, which is not just driven by the

supply issues, but driven by the willingness of the companies or the determination to go to higher wages. so, to $15 per hour. that is something we think will last over the next two years and will contribute to higher wage pressures and high inflation on a more consistent basis. manus: what is higher inflation on a more persistent basis that would upset the bond market? anna: there is the disconnect, we think, between the market picture, between potential trends we are going to see over the next two months and bond yields. we do believe the markets are underestimating the potential for this focus to be

persistent, and inflation will likely stay above target. in fact, even looking to the end of the year, the fed's focus this year is actually quite low and we would need to see a collapse in inflation over the next few months for that forecast to be hit. we expect the fed to upgrade their focus for this year and potentially next year. inflation will likely stay persistently above target. once we have a bit more evidence that these factors are not transitory, i think this is where the bond market may get upset. manus: this is what danny and i have been debating, where big of in this conversation. we both read the same article, but i will give you the details. jp morgan says the treasury will issue nearly 900 billion less bonds next year. do not worry about the biden stimulus plan, because that is over the next 10 years.

that is not going to cause much inflation. janet has told us that. the issuance from the treasury would be $900 billion less. anna, is that in part what is manipulating the yield at a lower level, because it presumes a taper and less issue? anna: i think it is impossible to think about one factor. it is important, but i think it is a condemnation of positioning , of more technical factors. yes, it is driving the market, but ultimately, growth is still going to remain quite an elevated level. inflation will be above target. the hurdle for the fed is to change the -- the hurdle for the fed to change the tapering time limit is pretty high.

tapering will start, and inflation persisting should fit into the bond market. manus: anna, thanks for being with us. not to be moving on with taper. a couple quick checks coming up. we will come back to markets in just a moment. it may show you what is going on in the asian markets. danny -- let me show you what is going on in the asian markets. danning, this is a big move. tencent rallies because this is -- we are just seeing a stepping back by the media in terms of the on slot they brought to bear on that yesterday, didn't they -- the onslaught they brought to bear yesterday, didn't they? dani: yes, soft and tone. the article yesterday about online gaming being spiritual opium, the link for that was taken away. tencent on board with some of

these changes, contemplating not allowing gaming among some of their younger users. that means a little bit of reprieve for these chinese markets. manus: indeed. jack ma's wealth dropped to 45 $8 billion after the tech selloff. i am glad he's got money. that is a lot more than i have in the bank. dani: a little bit. manus: i don't know if you drive a toyota or armoire of a tesla kind of gal -- four are more of a tesla kind of gal -- or are more of a tesla kind of gal, we are going to talk about the numbers. ♪

>> the shortage has been

impacting us. >> it has been quite a whipsaw for us. >> we were managing in week two week, day-to-day -- managing it week to week, day today. >> first semester of 2022, you could see uncertainty. >> it is important to have continuous modeling of the situation and how we can anticipate the supply situation. >> it is out of our control. it does not seem like it is getting better, but it is hard to predict. >> we have overcome ship shortages so far quite well, so we could manage -- chip shortages so far quite well, so we could manage. >> we have a lot of customers wanting to buy our cars, so we would like to sell more. we don't see that coming to improve. manus: auto executives on the chip shortage facing the industry.

it is all about the outlook. good day to you. take us through the most important highlight for you. >> operating profit came in at a record for toyota, and that is really because toyota was able to manage its supply chain despite the chip shortage we just heard about. they stockpiled, identified key parts. the reason for this was back 10 years ago when japan had its 2011 earthquake, they had identified weaknesses in their supply chain and had really built up a lot of expertise in terms of securing supply. that has really paid off in this latest quarter. they had -- they had almost a trillion yen of profit. way above analyst expectations. on the face of it, that looks good, but as you mentioned, it is all about expectations. dani: why would they keep their

profit outlook so conservative when expectations are so high and they seem to have managed this period eligible he will question -- relatively well? >> it is what you have heard from the other executives. the outlook is uncertain. toyota has always been conservative when it comes to guidance. they kept the outlook for operating profit the same, at ¥2.5 trillion. the market was expected ¥3 trillion, but just a second quarter made up almost half of what toyota was predicting. most investors were expecting an upgrade, and it just did not happen this time. dani: thanks for staying on top of this story for us. yeah, manus. manus: i thought we would have more time, but apparently we have run out. reed, thank you. dani: we could talk toyota all day if we had the time. i don't even own one, and i feel

like we could still talk about it. next, we will talk about one of the world hottest markets that may have reached its peak -- u.k. house prices, slowing down in july. ♪ (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.

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dani: good morning. we are just gone 6:30 a.m. in the city of london. i'm dani burger, alongside manus cranny live from dubai. here is what you need to know. deltek concerns continue to weigh on the recovery. immunologists mourned the threshold for herd immunity could be well over 80%. the tech crackdown takes its toll. alibaba misses on sales for the

first time in two years but softens his tone on gaming. plus, more interviews, starting with siemens energy this hour, and commerzbank. it is a more constructive hands off from the asian markets today. tencent in focus, up nearly 3.5% . china seeming to soft and it's down. it has moved away, -- soften its tone. it seems to have moved away from the spiritual opium world of gaming. manus: absolutely. that article came on, went off-line. it sounds beyond the research the regulators wanted. it looks like they are going to reduce kids' ability to play some of the games to an hour today over the week, limited to weekends and holidays. going beyond what the watchdog wanted in 2019, maybe even for bidding the purchase -- forbidding the purchase from those under 12.

dani: i have to say, it does seem like it will -- seem like a weird world to me when people who are 11 and under can use their parent's credit card to buy in game purchases. manus: when i was 11, listen, this is history -- people used to rent televisions. dani: printed televisions? my goodness. i thought blockbuster was weird, but renting televisions, a new one for me. manus: the debate is this. we had hsbc on earlier, and i quite like with the equity strategist there had to say. we are in the last part of the version. some of these -- last part of a version. dani: to that point, what contagions have that had?

mohamed el-erian pointing out that a lot of the passive funds are linked to china. you see outflows there. manus: absolutely. s&p futures lower. lungs winning streak in a number of years. the s&p will not like that. that is euros was. -- euro swiss. also a contentious point in terms of the swiss getting off. jgb is back at zero for the first time since september -- since december. that is going to be a pain for the bank of japan. brent seems to be just steady at the moment. half of provinces in china now with some kind of restriction in movement. those are the markets. there is relief in asia in the tech sector. will it carry through? let's talk about one of the world's hottest housing markets. it may have reached a peak.

the annual u.k. house price growth slowed in july, but the shift in behavior caused by the pandemic means that demand for more spacious homes continues. the boe does not appear worried and is leading an unsustainable buildup of debt. they said the mortgage to income ratios have risen only marginally. what is going on? let's get our real estate agent reporter. she joins us now. olivia, good to have you with us. the stamp duty holiday comes to an end. what can we expect in terms of the market? good to have you with us. olivia: good morning. i think what people have been expecting for a while now is that the market will start slowing a bit. if we look at house price growth annually, it is still pretty

high, just starting to moderate now. some of that heat is being taken out of the market. kind of expect that things are going to slow down a bit. dani: apologies for interrupting, but i am wondering, we are in the market are the hottest places that we could potentially see the biggest amount of pain going forward? olivia: it is interesting because traditionally london is less prone to national house price booms, but we have seen the more affordable parts of the country are seeing the biggest price growth. that could be scotland, wales, places where these kind of bigger homes with gardens are a bit more affordable. there is potential for across-the-board growth to kind of moderate, but in those markets in particular, there has been a lot of activity. manus: that is a debate, isn't

it, in terms of central london versus the rest of the country, that disparity. what is the outlook for home prices in the medium-term? does that bifurcate as well? olivia: i think this is the big question everyone is wondering about. in london, whether international rates are returning, travel researches lifting. -- restrictions lifting. we have seen londoners are buying more houses outside. that does not mean it will immediately change come about their changes in the rental market -- change, but there are changes in the rental market. in the medium-term, there is potential for it to be less extreme, but wanting larger houses and gardens seems set to

continue. dani: i've got to put my reached down in london one of these days. manus: you've got to commit. dani: i do. we will stay on top of the housing prices and then i will decide whether to commit. olivia, thanks. in the next hour, we will be hearing from alarm -- from one of the largest homebuilding countries in the u.k., after 7:30 a.m. u.k. time this morning. let's get to the first word news with annabelle droulers. annabelle: china's broadest outbreak of covid-19 since the beginning of the pandemic is hampering tourism and spending during the peak of the holiday season. authorities have rushed to cancel flights as outbreaks linked to the highly infectious delta variant spread to half of china's 32 provinces within just two weeks. at least 46 cities have advise residents against all but essential travel.

a shipping incident in the gulf of oman, about halfway between iran and the uae, is a potential hijacked, according to the uk's marine trade operations which monitors shipping in the region. last week, an israeli operator take was hit by a drone attack in roughly the same area, kimbers. iran was blamed by the west. more than 500 firefighters reported to work through the night to contain a large blaze on the outskirts of athens, forcing thousands to flee their homes. the fire was the worst of more than 80 that have broken out in greece over the past 24 hours. government officials say it is one of the worst heat waves of the past 40 years. most kids who get covid-19 recover within a week, the finding of a large u.k. study which followed a quarter of a million children. the researchers said about 4.4% of children with

symptomatically for experienced symptoms -- with symptomatic covid experienced symptoms longer than four weeks. global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: annabelle droulers there. much more to come. monday market movers. it is wednesday. that shows you i am completely out of shape. it blends. fed, fed, more fed. dani: it is either jobs day or not, really. ♪

manus: it is daybreak: europe.

it is officially wednesday. i remember my name and the day of the week. dani burger is in london. anderson however it's is known for making some of the most impressive bets in the tech world, an early backer of twitter, linkedin come on -- linkedin, and facebook. now he is setting his sights on crypto. the latest episode of "bloomberg wealth." >> cryptocurrency is like the parable of the blind man and the elephant. people touch it from different sides and get carried away and energized on these different topics. we view it as a fundamental technological transformation, a fundamental technological breakthrough that has happened. it is called distributive consensus, the ability of people and software on the internet to be able to form trust relationships in a trusted environment. money is one application, but it

is only one of those. there are many other applications, many other things people are going to be able to do with this technology, and many of the smartest people in computer science are coming in this field and pushing it forward at a rapid rate. to us, it looks like the eighth or ninth fund middle breakthrough, technological transformation happening in the tech industry, and we take it very seriously because of at. >> your view is not whether bitcoin is good or not, it is just that the whole technology underlying bitcoin is going to transform the world? >> these are new kinds of computers. bitcoin is an internet computers spread out across hundreds of thousands of computers around the world. it runs without any central location. it is a giant distributed mainframe and it processes transactions, and out of that comes the ability to exchange money. out of that process comes the bitcoin token. it is a completely new kind of

financial system. >> when people invent something, usually if they are shy, they might say they did something nice. how come the inventor of bitcoin has not surfaced question mark >> this is -- has not surfaced? >> this is interesting. whoever this person, thing, ai, government agency, whoever invented this thing, they knew the importance of it at the beginning. they knew it was important to hide their identity. it is remarkable that they knew that. it is like babe ruth calling a home run. it is amazing they did that and doubly amazing that they have been able to maintain the secret. dani: marc andreessen speaking with david rubenstein. you can catch that on the latest episode of "bloomberg wealth." let's turn to china, where beijing's crackdown on the tech sector has spooked investors, but the crackdown is not about big tech, it is about big

capital. joining us is surely when, bloomberg opinion columnist. your piece, you argue that what is surprising is the scale. what do you mean by that? >> i mean that all these issues with big tech, for profit tutoring to ridesharing and videogame addiction, they have not been do. china has been talking about this since 2018. they have been trying to crack down these sectors, but this time the breadth, the depth, all of the bureaucratic administration is coming at big tech, from the ministry of education to the ministry of prince rotation.

that is what i meant -- the ministry of transportation. that is what i meant. manus: i love the line that china does not seem to care how much foreign investors have lost. that may occur if capital flight keeps taking place. >> that goes to my point about the big capital. these issues are not new, and in 2018 china pretty much a bit its tongue because no one had a positive view on china back then. but coming into 2020, china was the only growing economy globally, and then there was a lot of hot portfolio flow, venture capital, everything. starting late last year, you started to hear chinese leadership talking about hot foreign on a coming to china -- foreign money coming to china. you can do however much money you want because money will

still want to go in, but say the u.s. economy has a rebound, it goes back to the roaring 1920's, and china is dealing with a new delta variant, the tables can turn and then you will start to see that the leadership will change its tone quite a bit. dani: if we are going to talk tone change, there is also this softening town when it came to the comments about gaming. are we reading too much into that? is this a pullback from the chinese government, to some degree, on some of the more harsh spiritual opium-type rhetoric they have had over these various sectors? >> we all know about the opium war. when the word opium is being used, it is quite hyperbolic. they are trying to set that back a bit. they are not saying, we are against foreign money.

we are just against foreign money investing in sectors we do not want it to go to. we are for foreign money investing in sectors we want it to go to. except foreign investors don't really do that. manus: you lead the horse to water, but you cannot make it drink. you can pick up her article on your bloomberg at any time. rate opinions. also, malcolm scott wrote a very important piece about what the priorities are for china -- national security, common prosperity, and stability. making money? no. coming up, siemens energy downgraded their earnings, so let's ask their ceo -- is it all downhill from here? christian bruch joins us

shortly. ♪

dani: welcome back to bloomberg: daybreak europe. i'm dani burger in london, alongside manus cranny in dubai. another day, another record for european equities. we are more than halfway through the reporting season. seems like investors are pretty pleased. manus: yep. if you look back at the past month, i was running agr on the stoxx 600. you can see that metals and miners have been the absolute bulwark. you see dividends, share buybacks as being the real alpha for these markets. financial services up 6%. real estate up 6%.

dani. dani: let's stick with the earnings story and get to another important interview this morning. siemens energy has downgraded its margin and -- earnings margin outlook. they abandoned previous guidance after a profit warning from their renewable energy unit in july. joining us to discuss his christian bruch, siemens energy ceo. thank you for joining us. clearly some of the price pressures are an issue here, some of that margin compression. how long do you see some of this inflation in material costs continue to weigh on earnings? christian: thank you for having me. it is a mixed picture if you look at the overall business. in particular, if you look at the raw materials, you have to understand the distinction. in the key business, what we call gas and power, we were well hedged and able to fight the

increases of raw material prices. in the wind industry in particular, and onshore, we have seen that we are affected more than we wanted in the area of raw material price. i do believe that it is something we have to manage in the pricing schemes, because i do not believe this to completely go away or go back to the old levels very fast. we have to see that, if you look at winded particular, this is a raw material intense business. if you want more renewables, we need more raw materials, more steel, more copper. this is something we need to reflect in the pricing models to actually work with the volatility in the market on the pricing. manus: how much let's ability do you have with the customers on pricing?

where did the windows open for renegotiation? my understanding is you have a lot of forward agreement on prices and your capacity -- correct me if i am wrong -- is limited to renegotiation. correct me if i am wrong. christian: first of all, the one thing is to get to the new contracts and to make sure that you have a different approach. this is what we have been doing already for quite some months now, getting these types of annexations into the contract. at the same time, with our customers, we discuss it and find customers open to it. in the end, as an industry, we have to make renewables work, and we have to accelerate the pace in terms of bidding on renewables. this will only work because it is a profitable business. we want to earn money to invest in research and development, to develop the next generational curb on -- next generational

turbine. this will only work if those in the market cooperate with our peers in the industry. this is a challenging situation, and this will only work if we as an industry fix it. dani: clearly siemens gains weighed on your outlook. t-boned 60% of them. -- you owned 60% of them. christian: first of all, i can only repeat i am not satisfied with the performance and we have to carefully look at how do we make sure that these same things are prevented in the future. we are working with the management of siemens closely to fix the current problem. it is our highest priority now, to have them in the project. all other things are speculation at the moment, but definitely we need to make sure that we have a

profit in the wind business, because it is a cornerstone of our strategy. manus: we are going into an election in germany. what are you worried about the most? christian: i think the next government in germany has an enormous task. we have to agree to change bonding conditions. if we want to have a different outcome, we have to do something different, and this is what the government needs to face. my biggest concern would be it takes us too long to form a new government, because there could be a very unclear result out of the election, so we need a strong government, a fast government formation process. this would be my hope, quickly getting a new government in place, because there is an enormous amount of tasks to be tackled, setting new bond conditions in the energy markets, and at the same time keeping a prosperous society. manus: christian, let's see how

it turns out. thank you for joining dani and i this morning. the ceo at siemens energy. ♪ and there you have it -

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annmarie: -- anna: good morning. the cash trade is less than an hour away. here are your top headlines. asian stocks and european futures edge higher. concerns over china's latest technology clampdown ease amidst a mostly positive global earnings story. china