" >> clearly the narrative recently has changed from, the fed might be behind the curve on flatto growth is absolutely falling off a cliff. manus: good morning. i'm manus cranny, dani burger alongside me. the fed have a decision on bond buying could come this year with a rate hike in 2023. we hear from the bank of england later today. the u.k. is as -- issues quarantine, it opens up to travel from france and lowers

restrictions for visitors from india. the united arab emirates. china follows the opposite path. imposing widespread travel curbs. the delta variant reaches nearly half the nation. keeping that troubled theme in -- that travel theme in mind, we have lufthansa coming across and delivering a $1.1 billion loss. long haul flights returning. this is of course as flights to asia we expect to drop by 6%. the numbers, second quarter revenue, $3.21 billion, below the estimate of $3.67. on a net basis losing three quarters of a billion euros, a net loss of 756. the estimated loss 738. free cash flow, that comes in at 340 million from a negative.

a negative 1.13 billion. that was a year ago. we're on the beginning of the evolution of reopening and turning it around. hopefully, dani. good morning. dani: good morning, manus. hopefully that also means you can come visit us now, manus. you can come without having to quarantine with both your vaccines. i'm going to shift gears to the industrial sector. we have lines crossing over their earnings. their sales on third quarter coming in over $16 billion -- over 16 billion euros. expectation just under 15 billion euros. the full-year comparable sales growth goal is upped to 11% and 12%. previously it was 9% and 11%. strong numbers out from ziman's this morning. manus: and just one word of warning from leuf thawn zha, they're keep their capacity forecast for 2021 unchanged at 40% of the prepandemic levels back in 2019.

we keep a track on both of those stocks and ample i.g. will probably react to the opening of u.a.e., bahrain and the shift as well from amber plus to amber for the u.k. dani, let's reset the ageneral davment 2021, it's grow, the vice chair says the central bank is on course to begin pairing bond purchases late they are year with a rate hike penciled in for 2023. he painted an upbeat outlook with his comments. >> if he outlook for inflation and outlook for unemployment i summarized turn out to be the actual outcomes for inflation and unemployment, realized over the forecast horizon, i do believe these three necessary conditions for raising the target range for the funds range will have been met by year end 2022. manus: and we had the view recently echoed by the san francisco fed president of st.

louis, both see tapering at the end of this year or early next year. julius buhr, chief economist. this chorus is growing. now, i just wonder, to what extent is this the fed, especially richard clariter for me, regrasping the narrative and telling the market we're not going to make a mistake. we're alive, we're aware, we're vigilant and ready to reprice? >> at the end it's still conditional what the fed is telling us. the forecast has to be real. so when the economy develops, we share this opinion of the fed that the economy is recovering very quickly. that inflation is there but we are not talking about the deflationary environment and probably to get a confirmation on this path what the fed is telling us, we need to wait until friday when we get some unemployment figures which are a bit more free from the special

support which has given to the labor market in the u.s. we get strong numbers here, then we are really on this pass which is coming up to recovery. and one last word, when we're talking about central banks, i mean, you see that they are watching not very -- also the which i but also watching very much what financial markets have and these are basically in line with the conditions of financial markets, the expectation of financial markets. dani: on that note, steve englander out with a note overnight saying financial markets are underestimating the impact that this jobs figure friday will have on the fed. that is not really anticipating and it should be that this could move the dial. do you agree with that? are markets not awake to the reality of the employment reaction of the fed? >> maybe the financial marks are underestimates that but

definitely the fed has talked a lot about their -- the waiting, the employment and labor markets returns here really and to drive the recovery further. and we think that it's very important to look at this figure to get really a confirmation or if we have to wait a bit longer with the recovery. manus: the a.d.p. announcement didn't do anything to razz our spirits. we have not hit the million jobs number that everybody was so focused on. david, i want to cast forward. you use the word peak many times in the narrative. peak recovery. peak policy support. take us forward to 2022 and the bond market. you have a fed on paper, you have a treasury issuing less, you have an inflation number

somewhere around 3%. take that trifecta and translate that into the movement of the bond marks. what would those three things which we think probably will happen next year do to the rates market? >> manus, i think that probably not we are too obsessed with this peak narrative, but financial marks are. i would put it in this context, that the peak narrative which we usually use in a slowdown, usually in a cycle is a bit misplaced right now. we have this snapback of economic growth. we have a snapback of inflation. all these figures are overrating the true underlying picture. we think after this peak we will see some decent economic growth because the preconditions are there. we still have loose monetary policy. we are now in the u.s. in the process of preparing additional fiscal policy, support, or

avoiding a fiscal cliff. so there are very good chance wers not slipping back in this deflationary or stagnation narrative we had before the pandemic and with that, we think that the bond market right now with treasury yields, 10-year treasury yields, is probably a bit too pessimistic on that. we think that the comeback here in yields is in the cards when we move away from the true peak but it is rather a transition to a strong growth environment after the peak. >> at the same time it's not just the u.s. that's pessimistic. we had an entire curve falling below zero. that might with be the case for the u.s. but is this a global market fear of stagflation and does that make sense that that's what's priced in? >> well, i think to -- i think

the starting point is europe. why that was not so much the economy. when we just would look at the economy, economic growth, inflation, then we would have much higher yield. it's really the supply and the demand of assets or treasuries. and don't forget the fed is still buying treasuries, despite we have a rebound in taxed income, the treasury has some money, the same is true for europe when we have stronger economic growth, you have less to do it with. issuance on the bond market, on the state bond market, is not so brisk, not as brisk as we have seen in the past and central banks are still buying. this is particularly true for europe. so it's europe which is dragging you down by reabsorbing all this efforts to buy central banks and this is dragging down. i don't think this is reflecting really what's going on in the

economy, in the economy we see quite strong growth. we see inflation picking up. when we talk about stagflation, we -- you have to contradict basically this transer to narrative and we don't buy into that. dani: david, we have more to cover with you. you're going to stick around. now over to anna belle for the news. >> hi, dani. fully vaccinated visitors arriving in england from france no longer have to isolate for 10 days that puts them in the same category as most other european nations. the u.k. eased rules for arrival from e.u., india and qatar. six other european couldn't wrirs added to the green list which requires no self-isolation. uber reported a wider than expected loss in the second quarter after spending heavily

to ease driver shortages. the raid hailer sow an adjusted loss of $5009 million. it says losses will narrow to $100 million in the third quarter and will make an adjusted profit in the final three months of the year. 101 million people used an uber service in the latest quarter. global news, 24 hours a day, on air and on bloomberg quick take, powered by more than 2,700 journalists in more than 120 countries. this is bloomberg. manus? manus: thank you very much. coming up, china hunkers down for the delta variant reaching nearly 50% of the country. what does it mean for growth? what does it mean for the world's second largest economy? and the contagion effect, the global impact of delta rising. this is bloomberg. ♪

dani: welcome back to bloomberg "daybreak europe," i'm dani burger alongside manus cranny. the delta variant driven outbreak grew to over 500 symptomatic cases scattered across 15 provinces and municipalities. what does this mean for growth in the world's second largest economy? we have travel curtailed, the government asking both business and vacation not to go, they're asking kids to stay from school. these are quite wide-reaching, pulling back in terms of mobility. how big an impact does this have on your outlook for growth in china? david: overall the growth in china, as in other countries, which have to face a second wave or third wave with the delta variant, it's probably the

economy is better to handle this pandemic so we would trim growth just slightly on response to that. not significantly for china. the more important thing is probably that also the import demand from china which has an effect on european growth and global growth this might be significant. so definitely head winds are coming for the economic recovery. that said we think this is temporary as the early pandemic cases and research. we think this will be overcome. it's a temporary effect on economic growth. manus: i think you're pitching for a job at the central bank, aren't you? you adopted that word temporary, temporary, temporary, transient. you'll say transient next time you're on three or four times. i'm tense about the bond markets at the moment. i look at chinese government bond marks, 2. #% in terms of

yield. best performing bond markets in the world this year. do they flag risk? do you think 2.8% flags the risk of slowdown in china? still it's the best performing bond market. what's the 2. #% and drop of 30 basis points say to you and the bond market in china? david: it's a reflection of economic growth. in china, this is the monetary policy in the past 18 months of the most conservative ones. no significant easing in monetary policy, they have even tightened monetary policy in the last two months. they have room here to lose monetary policy and this would help the bond market going forward. this is basically the reason why the bond market is so low. but the policies in china is the most conservative one and most

hopeful for the bond market and in the culture to europe and the u.s. manus: david, thank you for joining dani and i this morning. dani, another quick line coming from lufthansa, we're waiting for the size and scope of a capital raising. we wait for details on it, the timing and the size. of course this will infuriate the likes of michael o'leery who has been very critical of what's been going on with airlines around europe in terms of assistance they have had. it's a rare miss. the g.m. stock tumbles the most in a year. that was after profit came in below estimates. the company struck a cautious tone on future earnings. no rosy updates on the semiconductor shortage either. >> we increased our guidance for the full year so i think that show ours confidence that we're going to continue to perform on

top of an exceptionally strong h-1. but we'll be very fluid. right now we work daily for the team that's working on it, but weekly from a leadership team, we're working to make sure we understand the semiconductor situation and allocating chips to our highest demand to take care of customers and theals vehicles in plants that are capacity constrained. it is eespecially full-sized truck and suv's. there's a lot of growing uncertainty because of the delta variant. we have seen an impact in malaysia and mapped it out in detail. so we're working to share our safety protocols because we have the experience to say, when people follow those protocol, they can be in their manufacturing operations or whether it's design r&d they can do that safely. we're going to continue to share that, work with our tier ones and down to our tier four, make sure they have that benefit and then we'll just keep maximizing

production. >> i'm glad you brought up the delta variant. we're all trying to come to terms with a very uncertain development. give us a sense of what it might mean for general motors. you mentioned semiconductors more broadly in your manufacturing. >> we announced to teams yesterday and started today that we're reinstituting the mandatory mask policy at all of our sites because we know when people wear masks and follow appropriate social distancing and the sanitizing recommendations, people can be safe at work. and so i think we're in a very different position than we were over a year ago when really we weren't sure. we know the protocols work, so we'll be aplaying those. again as we all leverage all the learnings we have had over the last 15 months, i think that's going to put us in a better position for h-22. we are -- for h-2. we are monitoring carefully and the team will continue to adjust.

dani: coming up, delivering the goods. beef estimates for second quarter results. we have a conversation with c.e.o. frank apple up next. this is bloomberg. ♪

>> having to support some suppliers who need the extra help to get them across the line in terms of component quality. we're getting closer every day now. i'm confident we'll have a fabulous motor car in production this year. >> what will happen in the election campaign in the coming weeks is that all three people will be coming even more to the forefront and will be asked which of them can actually do this. we have a -- will we have a convincing answer. manus: that was the general secretary of germany's s.p.d. party after the launch of their election campaign. don't miz the interview with the

s.p.d. candidate for counselor later -- for chancellor later today. the house of the economy is a key issue always in the election campaign. we've had results from deutch post this morning. the owner of the d.h.l. posted second quarter results earlier in the hour. they came in slightly ahead of estimates and also guiding very strongly for the rest of the year, seven to 7.1 billion. frank appel joins us. a good set of results. second quarter net profit 1.3 billion. we have numbers, give me a sense of how strong the express business was for you. good morning. frank: good morning. the express business has really done very well. we really see the strength of that business unit we have with a global footprint. we have seen tremendous growth. it's now by far the most

profitable division as well. it's great to see it. neighbors of the global economy are tremendously and that's a reason why with our focus on the engagement of all people they have provided fantastic service and that's helped us grow the top line and the bottom line in that division nicely. fortunately not the only division that's doing fine. all five division have improved top line and bottom line nicely in the second quarter too. dani: some of the highlights there, i'm wondering about some points, we continue to see supply chain disruption. at deutch post what are the especially gainful dis-- disruptions that you're having to cope with? frank: i would not call it supply chain disruption, surprise -- not surprisingly we have high demand. we have high demand all across and that show house strong the

global economy sat the moment that leads to shortage. in production first and if we have full utilization, we can create messes overnight. international travel is still restricted. that's why belly space capacity has constrained. it's not because supply chains are disrupted. if you have thought about what might happen six months ago you would expect exactly what is happening at the moment. not surprisingly, the good news is it is better to have shortage in supply because the demand is so high than no demand which we had 12 months ago. we had a demand-driven crisis and a demand-driven recovery. what it leads to is shortage in all elements starting with production. but we will cope with that as an economy overall the production will come back and increase. supply chains will deliver what needs to be delivered. so i think this is all good news and not bad news and of course that leads on the short end to price increases.

all these things are normalalize rapidly i have no doubt. manus: frank, where are your strongest roots, to the east or to the west? frank: we are a global player. therefore we have good connections everywhere. we have to play an important role. globalization is so beneficial for the planet. the world is in much better shape than 50 years ago. due to globalization. we have to help all developed, all development across the world. and i think we have done that very well. of course we are seeing that there are frictions and hopefully that can be sorted out by politicians. our job is to help companies do good business around the world. dani: amazon dropped their -- their stock dropped after they reported earnings not seeing as bright an outlook as many had hoped for. do you see a similar unglueing of the stickiness when it comes to e-commerce?

frank: what happened if i read the number, they have not delivered the growth rate people expected. you know. we have said already for quarters that in the second half of this year the growth rates will slow down significantly year over year but the structural change to e-commerce will not stop. we expect that next year in 2022, the volumes we ship will be higher than this year. this year will be definitely higher than last year. and so on. so there's a structural change. more people buy online. but the growth rates the market has expected for some companies probably has been even higher. what we see is normalization. not forgetting the second half of last year. we had a complete lockdown of the world in part, in most parts, and that has of course led to significant growth rates. we will see normalization of those. we have no doubt we'll see a continuation of commerce. it's still in early stages. dani: frank, thanks so much for

joining us. that's all we have time for today. frank appel deutch post c.e.o. coming up, we talk bank of england, it's decision day. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot.

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dani: good morning from bloomberg's european headquarter, we've just gone 6:00 a.m. in london. i'm dani burger, alongside manus cranny in dubai. finger on the taper trigger. a decision on pairing bond buying could come this year with a rate hike in 2023. we hear from the bank of england today. u.k. eases its quarantine rules and eases travel with france,

eases restrictions from india and the united arab emirates. china fol throes opposite path, imposing widespread travel curbs. the delta variant reaches nearly half the nation. we're just getting some more earnings coming through, manus. we have vier buying davidian therapeutic, for $1.5 billion. missing estimates coming in at just about 2.5 billion injure reroes. the estimates had been for 2.9 billion euros from therapeutics to medicine to sports apparel, manus. manus: everybody is buying chunks of everything. you've sot sonofi doing their deal for 3.5 billion. did you buy yourself any new trainers? have you bought yourself any new low pressure goods? everybody is buy, everybody is a

little more on track day. top line momentum is accelerating. adidas is back in, revenue just over $5.78 billion, above the estimate of $4.97 billion. up 20% and the markets -- the market was looking for a rise of 18.8%. and the margins are steady, dani. 52%. on that. so dani there you go. adidas. new lululemon stores here in dubai. dani: i don't want to tell you how much i've spent on athlow pressure, we've just been home and there's nothing to do. let's move on to the bank of england. they have a decision today. one question which central bank

will be the first to taper -- to taper trigger, that's one of the main questions we are facing. b.o.e. likely to favor patience. michael saunders said to be the lone dissenting voice calling for an immediate end to bond buying program. we have bloomberg's economy reporter, lizie. what are we expecting from the b.o.e. today? lizie: we're expecting a unanimous vote to keep interest rates on hold at 0.1% and on bond buying 7-1 split with, as you say, michael sounders the esole dissent for the favor of ending stimulus early. he could be joined by dave ramsdan and they'll both cite the recent spike in inflation boosted by the success of the vaccine rollout but they'll be

dominated by those who point 1.9 million people on furlough at the end of june, lots of people not wanting to go back to the office because of the pandemic, fears about the delta variant or coronavirus. they'll point to real time indicators that show the return to work freedom day was a flop and the idea that the last few yards of the recovery really are going to be the hardest. the low-hanging fruit has been picked. has been picked. so the message from the bank of england today is likely to be one of caution. manus: great to see you. you've got a bit of good weather. just wait for the winter. so we don't expect any policy change. you've guinn thinks backdrop. one or two people have joined us and said you might get an indication on shift in the language of when they might withdraw stimulus. set the scene for that.

what kind of language change or guidance change could they give us? lizy: this is the bit that cowl shake guidance. they won't consider shrinking the balance shoot until the key rate reaches 1.5% that could change today because setting a lower floor would be possible because the bank is set to formally adopt negative rates as a policy tool. if they flip the order making balance sheet refrenchment the primary tool in a tightening, you're likely to see economists pushing back when they see the first post-pandemic rate hike theavment moment marks are pricing 13 base point hikes that could change today. manus: great to see you, great to have you with us this morning. lizzy burden setting this scene there outside the bank of england. he's covered a bonk of england

meeting or two, kip, thanks for joining us. how much dissent do you think there'll be? do you think it'll be the lone ranger in saunders or could ramstad rise again? >> he could find someone else dissenting. it would be an interesting conversation to listen to in detail today rather almost than the actual votes in terms of who wants to send a signal. they're not all going to be completely relaxed about the way inflation has moved higher. and it's hard to listen to your program without getting the sense that there's a lot of companies out there in the world that tell us what we know. the global economy sort of, you know, reopening in a slightly uneven, slightly insteady way but it's reopening and growing fast. the monetary policy look a bit odd next to it, you know, unless you're convinced that all inflationary rises are temporary and that will raise through.

and i suppose that the important piece in a sense is really more of the detail of what we get over the next few days from how people feel about particularly when do you think rates might need to start moving up and away from zero? because that's the sort of fluffy bit. in the u.s. we've got rich claire ter talking about taper soon but rate rises in 2023. which gives you an idea of how much tapering they want to get done before they raise rates. it's the movement of those rate expectations, you know, toward earlier in 2022 in the u.k. or later in the u.s. that really matters for market. dani: i'd be remaises if we didn't talk and get your call for the scenario. is this an entry point for maybe a long sterling position for today's rate decision and any of the language we might get out of it?

>> yeah, i'd rather be long sterling than short sterling going into this. i don't think we're sitting back and priced for anything very much for them. all the smaller details could get it. euro sterling is still the level of -- euro is still at the weak end of the historic ranges, it's in the a strong currency in real terms. i think there's potentially another 5% to get out of euro over the course of a longer period of time. definitely i would rather them be long sterling than long euro at this point in time. today could be a catalyst for a move. we haven't had big moves in the exchange market so far. it'll be nice. manus: we're growing at a faster rate than 80 years, i wonder to what extent that's already in the price? the other big discussionering people have come on and said the bank of england could shift its guidance in terms of bond buying. in other words the rate.

we will not reduce our bond, went set bonds until interest rates are 1.5%. that would be very hawkish, wouldn't it. how close are we to that kind of hawkish pivot? >> i think it's more a conversation in terms of -- a pivot in terms of turning. i think up to a point, the n.p.c. is not different pr the fed. you have to get your sequencing right along the way of whether i want to see yields, whether i want to see rates. one thing to get your tapering reasonably well far down the line before you raise rates. that drives it. but they could do. it's a signaling tool for them to say we're getting close to the point where we should act. and make the adjustments. but if i -- that's why i think it'll take a few days for everything to come out from here in terms of kind of nuance. but the big key for markets i

think is, you know, what does any of this mean about when rates are going to start moving now? dani: at the same time we have tborries johnson encouraging investors to pump money into the u.k. economy, spend more on infrastructure company, get them moving. it's unclear if that will translate to more fiscal spending. what impact does the fiscal investment or potential of it have on the economy at the moment? >> you know, i think the threat in the u.k. is, has been, the premature fiscal tightening, normalized after the spending from last year. so again, if you get more positive notions on infrastructure spending coming from the mime minister, if those follow through into action, taings source of relief. the biggest possibility, the biggest differentiating between the economies at the moment is going to be who is brave enough to hold off from tightening

fiscal policy too soon? the mistake all of europe made after the financial crisis was to tighten fiscal policy much quicker than the united states did, say, for example, and then get stuck in this low rate world. takes, i think it takes courage to look at the world at the moment and say look, the right thing to do at this point is to continue with reasonably accommodative fiscal policies. it's going to take us 10, 20 years to get these down as a result of the pandemic. if we don't let growth happen we'll find it's much worse than that. and who takes that leap may win the day in this, in the next few years. dani: you're always the courageous one for us here on "daybreak europe," thanks for joining us. now let's get other to the first word news with anna belle.

>> hi, dani. in china, the government has imposed new travel and movement restrictions across the nation including in beijing as a delta-dprifn outbreak grew to more than 5,000 symptomatic cases. public taxi services are being curtailed in 150 of the worst-hit areas nationwide while they restriked subway and train usage in the c the sus weighing a plan to require all foreign visitors be vaccinated for the coronavirus. that's according to a white house official. the potential move comes amid a surging covid-19 cases caused by the highly infectious delta variant. global news 24 hours a day on air and on bloomberg quick take powered by more than 2,700 journalists and analysts in more than 107 countries. manus? manus: thank you very much. coming up, a report in less than

15 minutes. we check out the commodities. will kennedy is with the team. this is bloomberg. ♪

manus: it's "daybreak europe," i'm manus cranny in dubai alongside dani burger in h.q. the world navigates itself twarld recovery and reopening but the risks from the delta variant are ever-present. we get a sense of the outlook for the commodity world when the giant glen corps gives us results in just a few minutes time. the executive editor is will kennedy. he's been tracking glencore pretty much all of its listed kroor. great to have you with us. this stock is up 43% this year. what's going to be the highlight, let's say, of this

report today? will: i think the contrast between -- there are two contrasts between glencore and others who have reported stellar results. on the positive side, glencore has a huge trading arm and that trading arm is doing very well in the preliminary earnings released last week. they expect earnings to be at the top end of the range of 2.2 to 3.2 billion, they were going to see big profits from trading commodities. there are things about glencore unlike leo and others they don't have iron ore. they don't have quite the same upside some others have. copper prices have been strong, nickel prices have been strong. grain trading has been strong. they're going to be pretty good numbers. dani: when we're looking through these numbers, analysts are giving their reaction, do you think peak might slip into the conversation?

will: i think it's perhaps a concern for some people. clearly we've seen a bit of a wobble in some commodities marks over the last week, especially oil on concern that the economic recovery may be slowing its rate of growth and more importantly the spread of delta variant. when you talk to glencore executives they see very strong markets, partly driven by the electrify case of the growth of electric car, metals like copper and nickel. they have a strong market over the next few years. we may not see the spectacular rebound we have seen over the last six months but i think the team is pretty positive about the outlook. manus: the other thing that we're going to keep an eye on is obviously dividends. we went through this period of let's hunker down, manage the capital, preserve capital and be the guardians of capital. i think that was the line at black rock. where does glencore fit into

the, i'm going to pay you out a few dollar, this edividend story? will: clearly dividends and share buybacks are a big story of this earnings cycle. we've seen teams give huge amounts of money back to investors. a company like glencore with many investors and managers they do that, so i think we may see some strong returns. they have their death under control. their debt is become below the target that they set, $16 billion. but they may want to bring that lower as well. there is one more cloud hanging over glencore, the investigation by the d.o.j. and some investors expect a settlement, an expensive settlement perhaps somewhere down the line. that may make them slightly conservative about what they do in the capital. dani: you menged oil prices moving lower. we saw one drop under $70 per barrel. can you describe the kind of angst that the oil market is

showing right now and how tied that is to delta concerns? will: i think it's very tied to delta concerns. this slump we've seen next -- this week has come against a background of added tensions in the middle east with all these two attacks on the middle east. there were reasons for people to be bullish but i think delta dominates. i think delta dominates not so much in the u.s. where the economy so far seems resilient and oil demand, people flying, people driving seems resill yent but china has been extremely determined to stay on top of the violence and has delta outbreaks in many places. the concern is if china clamps down hard on the spread of delta that could really have an effect on oil demand in the world's biggest importer. people are flying less, driving less, confined to their homes or provinces. i think that's the concern in the oil market right now. manus: do you think given those concerns, will, that that

reinforces the opec position of 400,000 barrels until the end of the year as an even more cautious outlook was the right decision as we run up to another opec meeting? will: i think opec will be ok. balancing worries about delta, they won't be happy to see oil prices slide back, but i think they can li with it. but on the other hand, the situation in iran i mentioned, you know, tensions, attacked on shipping, a new present, slightly uncertain outlook for the nuclear talks in vienna, means that many people have been banking on a lot more oil coming the next few months. looks like it might take longer than people expected. there is that support for the market there as well as the -- to balance out the concerns about delta. dani: will, thanks for joining us. good luck in just about 10 minutes when you have to hunker down and dig through those

earnings. coming up, england eases quarantine rulesser from visitors from france and moves a group of countries off the awfl red list. more on u.k. opening up travel. wilma nus be able to come to the u.k.? that's the big question. this is bloomberg. ♪

dani: welcome back to "daybreak europe," i'm dani burg for the london alongside manus cranny in dubai. you have your eye on numbers coming out of riyadh. manus: indeed. 7.64 billion real, they last 2.2 billion a year ago, that was in the locked down, closed down, shut down, can't do anything in the eye of covid. pretty spectacular number there,

7.64 billion now. that's turning it around. sales 42.42. 5 comfortable beat. the number out there was 40 billion. we're on course for a stronger year. they do warn margins to moderate in the second half but remain healthy. as we get more on that, we'll probably pick that up on sunday morning. let's see how the stock raids -- stock trades later today. dani, travel restrictions ease but i can't get there yet. dani: we'll keep a seat warm for you. the u.k. announcing an easing of travel restrictions. fully vaccinated people arriving to england from france no longer have to isolate. arrivals and rules of arrival from countries including india and u.a.e. have been loosened. let's get more on what this means specifically for the airline industry. joining us, our airline reporter sid phillips. this travel rule is changing. what's going to be the

significance of that? sid: good morning. the travel rules will change from sunday and what that means is that for airlines, especially the long haul specialists like emirates, qatar, british airways and virgin atlantic, this is a significant positive step because long haul travel from some of the most important destinations can begin to fly again. manus: i need them to accept my pfizer and i'll be home. my pfizer is different to your pfizer. what does it mean for the airlines. i'm looking at capacity, they hope to fly 45% of precovid levels, air france 70%. deutch lufthansa at 40%. will there be a material shift up in, let's say, airplanes deployed? sid: the airlines said they want more. essentially they always want more. but the u.k. has lagged capacity

that's been available across the wider european region and airlines are opening -- are hoping to see more flying going through. remember that india, the u.a.e. and qatar are significant markets for people who travel long haul especially those -- and the fact that those are no longer on the ered list and on the amber list, means arrivals no longer have to quarantine in government-approvalled hotels, good news for emirates and qatar, that have been offering services but only skeletal ones. manus: indeed. that's going to be a big boost for everybody. that's the latest on the travel restrictions easing in the u.k. dani, there you go. the skies are opening. this is everything. i caught up with the man who runs emirates, this is everything they wanted in the u.a.e.

i can get to ireland maybe before christmas. dani. dani: i hope you can. all our fingers are crossed for you. that's it for us at "daybreak europe." this is bloomberg. ♪

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anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards live in london. mark cudmore joins me in singapore to take us through all of the market action. the cash trade is less than an hour away. here are your top headlines. finger on the taper trigger. the fed's paradise as a decision on pairing bond buying could come this year with a rate hike in 2023. it's not just about the fed.