manus: morning from our middle east headquarters in dubai. it's daybreak europe. these are the stories that will set your agenda. the topix extends the gain. optimism of a new prime minister means new economic policy. disappointing jobs numbers. this most increase in seven months.

it is over the fed's taper timeline. the u.s. is closed for labor day. plus aluminum surge, prices hit a decade high as a coup fuels concerns over supply of a key raw material area good morning area it is good to be back from the beach but you are shredding it up on friday with the japanese markets. we continue higher. he has 32% of the vote, tom. will he emulate abenomics and drive equities higher to close the gap? good morning. tom: this is the important part of it. he is a far more popular candidate at least at this point, combined with the fact that the economic pressures remain on japan. around the pandemic, it continues. no clear plan for how they will exit that. more fiscal support, manus. manus: yes.

incremental adjustments in new zealand will put a bit more pressure on japan. martin malone talks about -- is not a boomer market. in other words, stocks are under 35% of gdp. in 1990, the warning sign was 140% but it's a different market. it's not all housing. it's not all finance. is it? tom: it has reformed this market in terms of corporate governance. positive changes when it comes to corporate governance, allowing more of those foreign flows into the japanese market and that is a relatively stable yen that will continue and may be some strength in the japanese currency. foreign flows into japanese equities on the back of what investors seem to see as optimism around political change. manus: on the top of your board. tom: absolutely. we are seeing gains close to 2%

on the nikkei at 30 year highs above that across the japanese markets. the asian markets as a result of what we are seeing in japan are brca positive this morning -- are broadly positive this morning despite revelatory changes and a focus on the financial sector. the futures -- it's labor day in the u.s., but futures are essentially flat, looking to the u.s. aluminum hire on that story of the military takeover of guinea. manus: certainly supply is going to be tight. we are going to dig into that in a moment. what does it mean for markets? tim graf has been listening to my pronunciation of aluminum. good morning. welcome to the show. here you go. are you a buyer and believer? we can debate that. but the market is betting it will be: onyx -- do you want to

be longer in equity and shorter in yen into a repricing? tim: that's probably sensible, not only the political reasons. you are still in what we see is an industrial upswing where exporters in particular have that ability to -- the yen is cheap and not probably going anywhere. adding to that appeal of japanese exporters and again, industrial companies make up such a large component of indices so i would not be the least bit surprised if japan continues to pull well -- poll well. tom: do you expect to see a tick up on the back of these political tailwinds? tim: probably. it might the a last push. japan has been a popular view

for a lot of the reasons i just laid out over the last several months most of this year. those cyclical tailwinds, etc. if this as to that story, if he does assume the mantle, then i would expect to 10-year just given it does in the prospect for a little bit more expansionary mindset a la abenomics. i wonder if it is getting a little bit full but the valuation framework, particularly on the currency side, i think supports the view. manus: join the narratives. everybody else has had their spin on whether taper will be delayed until later in the year. there is a big miss on friday. we missed -- 235 is what we got. we missed by 500,000, well short of what the market had

anticipated. let's listen to the other voices and then we will add yours. >> materially lower number. >> the first read is definitely that this has a delta variant on it. >> this is the long game coming out of a worldwide pandemic. >> a huge red flag for me in the payroll reports. zero jobs were created in hospitality. >> zero gain in that area. >> some bounceback in september. collects the market is looking through this and seeing this is temporary. >> tapering is very much on the table. >> the market is pushing back. maybe december. >> they do not need to rush into it. the most important thing not to lose sight of is the emphasis that tapering is not tightening. tom: what it out for you? -- what stood out for you?

tim: a comment that was made in the segment that they do not need to rush it, that is the thing that stood out for me about this report. it was not a good report but it gives them flexibility, which does feel as though they were talking themselves into this taper with the more hawkish members being much more aggressive and the inflation data in last month's payroll report or the previous month's payroll report supporting some move towards normalization but this gives them some flexibility. you can look at some of the measures of underemployment. encouraging. there were gains made in workers with less than a high school diploma, just a high school diploma, all of which addresses or gets you a little bit closer to the maximum employment target that it is talking about. on the headline, it was a bad report. the wage gains we saw were mostly due to compositional effects. it gives them flexibility and they do not need to rush things,

which is great if you are the fed. there are enough silver linings to this in those methods underemployment that i think you can take away at least for them on positives that the labor market continues to heal. manus: if the taper is delayed, is not all bad news and they will be slow to act. does this add to -- i know you favor a short dollar position, but what is the driver of that short dollar position, tim? tim: there are several factors. that is added to the appeal as one of them and that is not the only one. the dollar in our view still is not that particularly inexpensive. it is still expensive versus a lot of emerging market currencies and developed market commodity currencies so we think that there's goal some good catch up gains to be had on this cyclical upswing we are in the midst. u.s. rates are also appealing for fixed income investors but

they can hedge that exposure and get yield pickup if you are a eurozone investor or japanese investor even. those inflows into u.s. fixed incomes to fund the deficit can be currency hedged so there's almost -- at worst, a currency neutral view from that perspective and perhaps a currency negative view if investors continue to hedge their u.s. positions more so all of those factors add to the dollar short appeal. tom: yields seem to be range bound. does that continue given the changing views on the taper now that that has been pushed back may be to november, maybe to december in terms of the announcement? where do you see yields going? tim: slow-growing higher into year end. u.s. fixed income for once for me is pretty boring for the next few months. i suspect you will see leakage higher as normalization continues and the point i think

is that this is a taper delay, not a taper denied. you will get some sort of announcement, whether it is november or december. i don't really have a clear view on that, but the u.s. economy will remains relatively robust. delta delaying the reopening and continued renormalization, but again, not denying it i don't so as a consequence, i see yields leaking a little bit higher over the course of this year. manus: you have written this 6:30 headline. the taper delayed, not denied. you have a whole future ahead of you. stay with us. don't hang up that zoom. we have a couple of lines coming from my part of the world. another ipo out of our major oil company. going for the intention ipo, giving us a timeline. we are going to get the pricing. 7.5% of the company will be put on the block.

i saw the doctor yesterday as he was walking around the uae, making some big announcements. 7.5%. we will get the pricing. we will go on the abu dhabi exchange in the beginning of october and that is what we have got. what is the story? tom: we are talking about the changes in the political environment. japan, we have also been discussing. germany, the run-up to the election. also france, the french elections. it is very tight indeed. at this stage, still early between macron and the 10. -- marine le pen. let's get the first word news with angel. angel: thanks. boris johnson will defend his handling of understands crisis -- the afghanistan crisis. he is expected to reiterate his pledge to use "every economic,

political, and diplomatic lever to help the afghan people." the statement comes amid criticism of the government's handling of the taliban takeover. the top what has medical advisor says pfizer and biontech vaccine is the only one likely to be approved u.s. booster shot against covid-19 initially while the moderna shot may be delayed. anthony fauci's comments on cbs may provide more clarity on the administration's dance. the white house faced criticism of political interference in the review process. >> looks like pfizer has their data in and likely would meet the deadline. we hope that moderna would also able to do it so we could do it montaigne you see, but if not, we will do it sequentially. the bottom line is very likely at least part of the plan will be implement it but ultimately, the entire -- implemented, but ultimately, the entire plan will be. >> it closed at 18 months ago

due to the pandemic. it is the last spot in europe where traders set benchmark prices, shouting out orders at one another, but many fear that volumes will be sharply lower than before the closure, possibly making the continued operation not economical. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus. manus: angel, thank you very much. i survived all of one day on an open drive market. that was 1989. i have come a long way. let's look ahead to the ecb rate decision on friday. tom and i will discuss that. is it time for a hawkish tilt? this is bloomberg. ♪

>> i don't think it should come as any surprise that there is a spike in inflation right now. >> we are not concerned by the current level of inflation in the e.u. or everywhere in the world. >> inflation is very much influenced by energy prices and crude prices. >> all institutions consider it will be a transitory future. we have to avoid it becoming structural. crimes we think this increase is a temporary one. >> we are monitoring it. we should monitor it very accurately, but without going to a conclusion too soon. clients we remain vigilant but we are not concerned. >> it is a natural feature of a strong recovery that we are witnessing. tom: finance and economy

ministers speaking on the state of inflation in europe at the forum over the weekend. looking ahead to thursday's ecb rate decision, will policymakers dial down emergency stimulus while the delta variant still poses a threat? still with us is timothy graff, head of matt rowe strategy at 83. transitory or structural inflation, underpinning the views of the honks with in the ecb's governing board, they have been making their voices very clearly heard. are the hawks right? should the ecb start pulling back some of this stimulus? tim: emergency stimulus versus normal stimulus. when the emergency stimulus front -- i guess the answer is probably. for the ecb, they have a targeted end date and they can use that i think to massage expectations around the broader state of balance sheet. i do not think the hawks necessarily win out.

i would suspect inflation will remain around 3% for the rest of the year. some of that is due to basic facts but also made last year, you saw some weakness in prices that will keep inflation propped up by thinking to the end of the year and that will give them a lot to talk about. will it make a meaningful shift in policy? i suspect not. nevertheless, the euro zone is pretty robust. we really like european equities on that basis. we like the euro. any hawkish rhetoric on the euro side should support the euro in our view. manus: in the same way as you said, it was a taper delayed but not denied in the united dates of america. tacos through your -- united states of america pay or talk us through that. does get used and then fade to best? it doesn't unseat equity trade? because global growth usurps that. tim: what i suspect he will

start to see is that it will be a modest tapering of the rate of purchases such that people can get ready for the slower growth in the ecb's balance sheet by the time it is ended at the end of march or likely ended by the end of march, and i do not think that is going to be necessarily disruptive for european equities. we love european equities. they are still a value trade for us and they don't have the benefits of an industrial recovery miller to what we are talking about in japan in the previous segment and so that type of appeal still holds for us and the notion that policy is not getting easier, that is the message on europe for us. that should be supported for financials a little bit more, which has been beaten up within european equities over not just the last few years but over the last 10 to 15 years so that should continue to support european equities as well for us. tom: you love european equities but inflation at 3% until the

end of this year, i'm concerned that -- my question is around the margins. which parts of the values of the values space in europe could be challenged as those input prices remain elevated? tim: if that is the case, and i think the transitory part -- there is a transitory element to this. inflation will largely be supported by basic facts. you will probably start to see it slow so the consensus view is probably justified so i do not see too many eminent threats. if that is wrong, what you are going to start to see are the longer duration stocks within the euro zone. things like any exposure you have which is admittedly smaller in the euro zone relative to the u.s., but that could suffer. consumer discretionary, some of the big beneficiary as we have seen of the recovery from covid over the last year is probably your vulnerable pocket. manus: when we were in the

break, you have been underweight bunds for almost over a year. it did not sound like you are active in repositioning or in a hurry to reposition. with the ecb taper scenario that you just pointed out for us, i went away for eight days. i had a holiday, gave me some time off, and i look at the blend price -- bund price and it traveled six basis points. we get to zero? do we make it to zero and then halt or are we perpetually -36, -50, negative 36, -50? tim: in light of our view on u.s. fixed income, that underperformance will probably still be there. you might start to get a little bit more aggressive of a move then you would get in treasuries but to be honest, our call on treasuries is pretty modest so i don't think you quite get there by year-end so he start to get

-15 basis points in a very gradual fashion, as you say, a very low vol market. i don't know if we are quite ready for positive yield simply because inflation likely will be transitory. policy settings will still remain disposed towards low-end negative policy rates for the next year or two years so i'm not sure that will be enough to get positive yields in the longer maturities in germany. manus: great cause. thank you for getting up early. good luck. i hear that you are back in the office tomorrow. that is writing i hope everybody plays together and shares their lunchbox. tim graf, head of microstrategy at state street. we will discuss the impact of getting -- guinea's coup. aluminum. join us and have that debate. this is bloomberg. ♪

manus: this is "bloomberg daybreak: europe." i am manus cranny in dubai. tom mackenzie at london hq. political unrest in guinea has rattled the global alumina market. that was sunday. the african nation is a major producer of bauxite, which is used in the aluminum. let's get to martin ritchie, who joins us now. how important is guinea in the aluminum production supply chain? artan: -- martin: it has been a surprise morning for aluminum, everyone scrambling to understand what is guinea's role? it is basically a china story as

a lot of things in commodities are. china has spent much of the last decade holding any up as a major supplier of bauxite -- guinea up as a major supplier of bauxite. it relies on them for 55% of its raw material. so concern is there might be some supply disruptions, changes in policy in guinea. the effect of the raw material in china and making production perhaps more costly and difficult in turn makes alumina more expensive so you have seen prices in shanghai this morning go up to 15 year highs. manus: 15 -- tom: 15 year highs, that's part of the reaction. a lot of uncertainties and unknowns. how is that expected to play out going forward? martin: it's just very uncertain

because we don't know -- it is such a sudden event. we don't know what this new government in west africa wants to do. so it's really a wait and see. it's one of those things where the investors look at the worst-case, extreme case. if, for example, there was disruptions halted from guinea for some reason, that would be a very big event in the alumina market. you can see price spikes ultimately, guinea gets a lot of money from selling bauxite to china. major long-term support for prices. tom: martin ritchie from our metals team in shanghai. thank you for the implications on this power change. the uae economy minister has unveiled plans to reposition the nation as a global hub for

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tom: over the feds taper timeline. the u.s. is closed for labor day. aluminum surges. prices hit a decade high as a coup in guinea fuels concerns oversupply of a key raw material. manus: tom, very good morning. very good morning we have one of those -- i have had eight days off. i'm not used to you being there and you are not used to me being here but let's talk about these markets. commodities, i mean, is it lu minium -- aluminum or aluminum? tom: my wife is american so my daughter flips between the two and it is very confusing. my wife is all about getting an english accent down. that is where we stand. the events and give me, that was

the price over the weekend. -- the events in guinea, that was the surprise over the weekend. more than 50% of china's demand for aluminum comes from that country. that is want to watch. gas prices as well. i know you will get onto oil but gas prices, the implications for europe, russia limiting the supply of gas. what does it mean for a bleak winter? more ingrained inflation? tim stress thinks you will see 3% for the rest of the year. the gas complex is increasingly important for that discussion. manus: the oil market, we are down -- i'm checking the oil price now, down 1.5%. this is saudi arabia. down 1.5%. they slashed the price. that was more than the market had anticipated.

he is the ceo and we will talk about oil then. asian stocks are higher. we are going into the labor day. we are seeing a large flow. they melt up rather than a correction and there is your aluminum price in london at a 10 year high. to my region, the uae planning trade ties with some of the fastest-growing ties from asia and africa, hoping to draw in $150 billion in foreign investment and ease the restrictions and reposition it as a global hub for businesses, finance, trade, and logistics. i spoke with the economy minister about the plans for job creation targets. >> we are looking at a lot of numbers of jobs.

the most important thing is what we look at, more than 30,000 jobs over the last year or so. we are looking more on that percentage. manus: 30,000 jobs over the next year and that includes expo, does it? martin: -- abdulla: it's important to look at what sectors will attract what types of jobs will be created in indonesia. manus: let's translated that into economic growth for gdp. what is it going to mean for gdp? abdulla: it has been estimated between 3% and 4% globally for the uae but with such leadership we have my we are looking at more than percent. manus: the imf has you down for 3% this year. is it 3% this year? abdulla: we hope more than that. manus: next year? abdulla: absolutely. manus: how important is that for

retaining people in the kingdom? abdulla: the fuel for an economy is the human capital. we understand that losing a job does not mean that the person has to leave. one month to six months. and human capital is what really focuses on welcoming people, bringing them in, and being part of the economy. manus: big plans, big ambitions from the uae's economy minister, abdulla bin touq. the plans for the economy here, let's put it in context. our economy government reporter going to me at the press conference yesterday. thanks for taking the time. great story that you and the team wrote up. we talked about politics but from the economy side, how important was yesterday? how attainable are yesterday's

targets? morning. abdulla: good morning. this is definitely a big shift. the uae is doubling down on its economic credentials on the fact that it is the regional hub, loosening it. market. loosening visa requirements. a lot of the population is made of x that and they are basically saying that this works for us and we are going ahead with it. we know that the uae over the past decade, there was a little bit more entanglement with political conflicts across the region. meanwhile, from dubai, the model was always focused on the economy to bring people here. this is what the region needs. economic stability and bringing -- creating jobs, really. tom: it is interesting in terms of things like visas and restrictions around the border

starting to ease up. there are many countries in the world where the opposite is happening so maybe that will play into the uae's favor. what is the significance of that? abdulla: this is -- >> this is the green visa. they are gradually loosening the requirements for people who are able to attend long-term he says. we don't have the equivalent of a green card in the u.s. where we have residency. citizenship for life. certain ways where you can get residency for 10 years. the green visa allows people to sponsor their parents, and children up to the age of 25 if they have stable income and they are top graduates. they are trying to bring talented people from across the region who may not have other places go. so talented right now. let's say artificial

intelligence and topics of importance. you have a place to go and that is where they are trying to be select to to attract people who will come here and add value to that economy. manus: that is the message. we were chatting. you were chatting to other ministers before the interview and he said we want to be agile. this is where we are good. this is to their credit. at what level are these moves, the fbi draw, the trade relationships, the green visa, move to counteract the grab for business by saudi arabia, which is doing by coercion rather than incentives, one could say. do you think this is getting out ahead? abdulla: this is -- >> this is really an important point because the competition with saudi seems to us as observers,

it's putting more urgency to this move by the uae to up its game. nobody else in the region was doing what to buy did. we saw within a few years how the others started to copy its model. saudi arabia is telling companies you have to move here where dubai's model and the uae's model is basically, if you do the best and create the best infrastructure, provide the best lifestyle, give the best, you know, put in the best laws and regulations that make it easy, people will, and you don't have to force them. as one of those ministers told me yesterday, he said to bring it on basically. we want to see the competition with saudi because competition with saudi will, you know, make this pie bigger. and when it gets bigger, our share of it will get bigger so certainly, they are not sitting

down and taking, you know, they are trying to go ahead and ensure that, you know, they stay at the top of their game. tom: regional competition is going to be very interesting to see how this plays out. our guest on the latest for those uae plans around attracting sdi. let's get the first word news with angel. angel: the u.k.'s biggest business lobby attached to the government over labor shortages, warning that could last as long as two years. the director general says a perfect storm of brexit cutting the supply of workers from the e.u. and the pandemic have left many sectors without the staff they need. the cbi wants targeted immigration to fill job gaps. the jolt -- the global chip shortage could take until 2023 to be resolved. the parent company of daimler spoke in munich.

the german firm recently cut its annual sales forecast for its car division, projecting deliveries will be roughly in line with 2020 rather than up the vacantly. deliveries of the dreamliner are expected to be delayed until at least late october according to the wall street journal. the report says the faa rejected boeing's latest inspection proposal. boeing stopped dreamliner deliveries in may so regulators could review its inspection processes. the first marble film featuring an asian superhero dominated the u.s. weekend box office with an all-time high record for a film opening over labor day. the disney movie made an estimated $71.4 million in u.s. and canadian theaters, blowing past initial estimates of $52 million. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

minutes. manus: angel, think -- manus. manus: angel, thank you. germany's election is on the horizon and drawing closer. environmental issues, the key battleground for the party. we will discuss the latest. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." i am tom mackenzie in london with manus cranny in dubai. i want to draw your attention to the markets in china. the csi 300 is gaining more than 2% in today's session. you are getting back to those march levels where you saw the sharp selloff, making up for some of the correction. valuations seem to be key.

that has been flagged by marc tran. on the tech side, some relief for chinese technology companies. maybe the payments they have been making around charitable donations is something of a circuit breaker for chinese tech, manus. manus: it's about resetting the mindset, isn't it? you found that headline before we came on which is a rare moment of unity. i said is there really an overflow? we are both tracking japan. the burst from japan on the possibility of new economics. that has a whole set of fiscal and monetary implications and we have state street with us and they said you want to be long japan, close the gap. it has been flat relative to the u.s., relative to europe, so a rare burst of unity, a rare burst of us being together. you will have everything back to yourself, back on your own, kid,

in a day. tom: i will be crying into my coffee. and now you are jetting off once again. manus: i am an unreliable boyfriend, they say. tom: we have had it now. that's official. it's on the record. we were talking about the policies of japan. we are switching over to germany. this remains the biggest political story. less than three weeks until germany's election, environmental issues have been a key battleground for the party with a heavy reliance on coal for electricity generation and a thriving industrial actor. the country is europe's biggest polluter but can germany cut its carbon footprint without venting jobs and economic growth? let's get more with maria tadeo still on the ground in berlin. how far has this election -- what are the policies climate change? --policies for climate change? maria: one thing that is

striking about this election is just how high climate futures on the agenda and the political debate. almost 40% of germans will tell you that climate is their number one priority, a huge number for a tingle issue area in terms of the politics, all of the main parties running in this election tell you they want to hit climate neutrality and they also want to cut down carbon emissions. that is a priority for them. they will also we want to carry this out in the next government but you see big policy, the targets, the timing, and the way to do this. the greens have the most ambitious agenda but of course the criticism perhaps is that the german industry may not be ready for that. the criticism to those who don't want to do it as quickly is that this is now perhaps a climate emergency and more measures are needed much faster. the government led by angela merkel does not have a good

track record when it comes to climate policies. manus: where are we in terms of identifying the difference, the delineation between the parties? maria: well, a lot of this has to do with climate neutrality. when do we get to that point? the european union has set a clear deadline. 2050. that is when you need to hit that number. for the -- they are now competing to win the election. they are fully on the target. they say we want to get to that point by 2045, five years before the european deadline. when you look at the greens, they say they want to do it much quicker over the next two decades which should put the deadline at around 2040. the issue is how do you get to that? a lot of this will hinge on the industry being able to reshape itself and perhaps taking off diesel cars out of the roads in germany and going more electric. that is another issue where they

differ. the amount of investment that will be needed to carry all of this. the greens say anything that is met new investment for green measures should be taken off that data bracket which is always a big deal. manus: thank you very much tracking the general election across the country in berlin. the inflation has been rising at the fastest pace in a decade. nadia is the country's economy minister and she said it is a natural chair of a strong recovery as the country -- that the country is witnessing pitch she spoke exclusively to bloomberg this weekend. nadia: i think we have to be extra prudent when we are making economic forecast. in particular, in these environments marked by uncertainty you know, our focus is a very strong growth. 6.5% this year, 7% next year. you're right now focused in

implementing and deploying the recovery plan and i think that is our top priority. not so much focusing on one number or another. >> looking at the political debate, which has been dominated by the jump of inflation, especially energy prices, how worried are you that they will suffer from declining spending power just as the economy emerges from the recession? nadia: i think we have had very low inflation and that was a turn. last there when we had big crisis, prices were very low, stable, so i do not think that it should come as any soup rise that there is a spike in inflation this year and all institutions consider it will be a transitory future and we have avoid it becoming structural but it is a natural feature of a strong recovery that we are witnessing. that is not concerned.

when it comes to energy prices, i don't think it is so much of a macroeconomic issue right now. it is more an issue that affects or may affect family income and the family finances so what we are trying to do is to decouple the evolution of also markets where prices are increasing throughout the whole of the e.u. from the evolution of the monthly pay payments that come from families and companies -- monthly payments that come from families and companies. there is a lot of welfare for citizens. tom: that was the spanish economy minister speaking to bloomberg. coming up germany's benchmark stock index is getting a makeover. it's biggest revision since its inception in the 1980's. we will discuss the dax rebound, next. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i and manus cranny in dubai. tom mackenzie in london hq. the language that they use is for many months so these are the latest headlines coming from the ceo, oliver. matt miller is on the ground, isn't he? this is a global issue. renault le maire saying europe has to fix -- bruno le maire saying europe has to fix that. the dax undergoing a big revamp, the biggest since the 1980's. the industrial heavy dax getting a little bit more blood. the online fashion retailers, hello fresh, and 10 companies all joining the index. what does it mean for traders? he is in frankfurt.

how significant are the changes? >> pretty significant. the biggest since the dax was introduced in the late 1980's. this all started a year ago when the company collapsed while being in the index. he decided to make a couple of changes, with new measures for companies to post a profit before they can join. the final step was they added two new members and among them are a couple of both stocks. the index gets a little bit new dna and a fresh taste. tom: what is the impact likely to be on the companies that are joining? >> i would not overestimate it but it is good to be in the big index with all the money we are seeing flowing into etf's and institutional money. a little bit more visibility and investments and it's always nice if you are in the top index of a country to give an international

profile, so to speak. manus: a lot of people have been trying to get long value on china, living vicariously. the dax has outperformed peers today. good this restructuring revalue the index or change that dynamic? jan-patrick: it can certainly do a little bit to it. the dax will always be an industrial heavy kind of index, prone to global growth and global development, but don't, we are seeing a couple of nice names going in there that are more into the direction of the internet technology but also names like siemens healthineers, so it is big in the tech sector and it will help the index to be a little bit more diverse. will the topix outperform? that remains to be seen. tom: ok, thank you very much indeed. that is it for "bloomberg daybreak: europe."

the european open is up next. futures in the u.s. are up and asia is strong this morning. plenty more ahead. this is bloomberg. ♪

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anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london. mark cudmore joins me in singapore to take us through all the market action this hour. cash trade is less than one hour away. here are your top headlines. disappointing jobs numbers. the smallest increase in seven months as to uncertainty over the taper timeline. aluminum