manus: good morning from our middle east headquarters in dubai. tom mackenzie alongside me in london hq. these are the stories that set your agenda. china's exports surge. trade withstand new outbreaks of covid and pushers. george soros says blackrock is pouring billions into the country and it's a tragic mistake. the forecast for u.s. growth.

the pandemic continues to weigh on consumer spending. germany's engines calls. the global supply crunch threatens the nation's recovery. we get the zew economic sentiment this morning. good morning. i think we described the chinese data as the exports and imports both triumph it -- triumphant. this is good news for the world for now. tom: comfortably beating those forecasts. this is a leg of the chinese economy that is all in high gear. services and consumer looking tepid at exports looking solid. 25% year on year for exports for the month of august, well above the or cast. the forecast was 27%, manus. manus: people should read the line this morning about the services export agenda on china trapping them in the middle class level.

despite all the drama, take a look at this. down 16% from the highs but the money floods in, the worst-performing index. see money flood in every single month and it doubled in the past 12 days, looking at this flood in of money to the mainland. but what about george soros? if anybody is going to take a swipe at blackrock, this encapsulates the warning, doesn't it? tom: i remember when george soros was in beijing, he was mad as a hero at a university to give a. very different now area george soros telling blackrock that they are making a tragic mistake in assaying will lose money and they will end up losing investors money with their push into china and maine the push into china is a national security risk as well may tragic mistake. that is the line from george soros. manus: i know he has warned

about china. japan about 30,000 on the nikkei. it will be interesting is that state street said it is a pretty full up trade. tom: that was the reshuffle around the nikkei 225 that added to the momentum, the political positivity and optimism still supporting stock split is the reshuffle. nintendo added to the nikkei 225. it just went below that now. across the benchmark, that check in on the indexes. the benchmark, msci asia pacific index, getting 3%. optimism in china as well as a result of that trade data but also a sense that the tech stocks are back in play. tencent with a buyback. the likes of why show up 10% and may 2 on stronger as well -- and another company a stronger as well. in terms of the futures in the

u.s., the labor day holiday yesterday and futures stateside are just edging into the green, manus. manus: you will do a lot better with the chinese pronunciations than i am. i would commit sacrilege. for now. you can send me phonics. let's move the agenda along and talk about the george soros risk to the world. the latest data you and i recapped, unexpectedly eating and surging last month despite the delta variant. exports up 25% and the imports growing by 33% for those of you who are just checking in on the numbers. tom. tom: that as george soros slammed lack rocks push into the country. he called the investments a tragic mistake. joining us now is aberdeen standard investment director,

james. thank you for joining us this tuesday morning. what is your take? let's start with the trade data. the data out of china suggests that trade engine, the export engine, is firing on all cylinders. where do you see the chinese economy heading? james: good morning. i do think it is firing on all cylinders, to be honest. that is one part of the chinese economy that has benefited greatly from the pandemic is up and the law downs and switch to remote working which followed. i was not usually surprised delta is a little greater than expected given the domestic data we have seen has not been great and continues to not be great really. in terms of the broader economy, i don't see this as where things are going next. i think the political economy

changes that we are seeing and hearing more about, seeing the policy actions resulting from, i think it is a significant shift in the chinese outlook. manus: when i hear from you the top line of what you sent us, change evolving, the market is underestimating the risks of what is going on so i take it you are a buyer of george soros. george soros is pouring billions of dollars into china -- he says it is a mistake. james: i don't fancy inserting myself in a public spat the world's largest asset manager and investors. i would have concerns about the macroeconomic outlook. i don't think that means that there is not, you know, money to be made, wise investments in

china. i would say that i do think that this adjustment which the resolution has been pushing towards, it is pretty well known . he got closer to a view of how the communist party should operate. it has not been such a great surprise but i think some of the actions of late has been outside what we have become accustomed to. that transition towards the circulation, more regionally focused, not so export reliant or manufacturing reliant, that transition is going to be bumpy and difficult and trying to get the sheer number of chinese citizens of the income scale that is required to get this wealth and right, that is also going to be incredibly

difficult. i'm not paying it is impossible. but i do think that there are many risks and they are predominantly on the downside. tom: what would you need to see to look to add chinese big tech? james: that is a really good question and a really difficult question. it's probably too broad a question. we have to get down to the specifics and reversion to an area where we have asked hertz that no far more than i do about the chinese tech sector and chinese equities space in general so when you have policy actions which have been slow, pinpoint, if you like, this is the whole of chinese policy at the moment, very targeted in terms of where they are tightening, where they are trying to reduce leverage, how they are trying to alter how sectors operate. it is difficult to know in advance quite when and where those actions are going to take

place. it is difficult. i think expertise and bottom-up analysis is going to be much more important if you are looking to invest in chinese companies rather than passive index investing. manus: that is where people are going to say this is to the fore. stay with us. do not hang up the zoom. we have a lot more to do. james athey at aberdeen standard. we have news coming from deutsche telekom. they are going to sell in the netherlands. deutsche telekom to sell t-mobile netherlands for an enterprise value 5.1 billion euros so this is a bit of a move. we will see how that trades on the morning open. tom: 5.9 billion u.s. dollars and they had a number of bids for this part of the business but a significant selloff for deutsche telekom out of their

dutch business. manus. manus: it goes over to a new vehicle, telecom holdings. let's get the first word news from simone foxman. she is very much present. she is in doha. simone. simone: thanks. it's johnson will announce his long-awaited plan to read from social care later today. he risks a major dispute over a tax rise that could hit young people the hardest. he confirms a 10 billion pound increase in national insurance payments would break a pledge in the conservative party's 2019 election manifesto. prosecutors in the northern chinese city have dropped their case against a former alibaba manager accused of sexual assault by a subordinate. they say the man's behavior did not constitute a criminal offense but local police detained him for a lesser offense of indecency. the man's arrest in august

sparked widespread debate about the treatment of female workers at companies in china. london's underground had its busiest morning since before the pandemic yesterday. office workers returned to their desks and schools reopened. within 800 30,000 people used the tube during the peak hours, a rise of 17% from the previous week. daily usage is now at about half of its pre-pandemic level. el salvador's president says the country has bought 400 bitcoins as it prepares to adopt cryptocurrency as legal tender later today. businesses will be required to accept the digital coin in exchange for goods and services and the government will accept it for tax payments. 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. tom. tom: simone foxman, thank you. coming up, the rba sticks with

its tapering plan. we will get market reaction and discuss the risks for central banks. this is bloomberg. ♪

tom: welcome back. we have had a decision from the rba in the past hour, keeping rates unchanged and taking what their plan to taper bond purchases. let's get the market reaction from juliette saly in singapore. what have we been seeing? juliette: really interesting here, tom. we did see this cautious winding back coming through from the rba but i was just speaking to james mcintyre, getting his take. he was saying less is more because the rba committed to this bond buying program. 4 billion aussie dollars a month but they pushed it out until mid

february they reassess this. they will reassess in mid-november. it is seeing it as the same, that this is the a little bit more stimulus to the economy. you did see the aussie have a little reaction but it is lower by .3%. we have been watching what has been happening in the 10 year yield, coming from earlier highs of 1.27%. the rba mentioned the aussie dollar. have a look at my gtv chart. enda curran put it really interesting way. he said the rba did give a careful not to a weaker aussie, saying it has depreciated over recent months my saying the economy. the rba will not see that. even though we have record of interest rate of .1%, you have seen a stubbornly high aussie. as to whether we will see rate hikes in the cash rate move, you could see one in 23 but when you look at the actual price range from broader market analysts,

they suggest we would see one in 2022. the rba saying 2024. manus: ok, i suppose we will know a little bit more when we go over the review, how hawkish they want the be at the start of 2022. let's skip over to qed land. -- qe land. where are we on the differential? you have been looking at the trade. juliette: we talked about the 10 year for the aussie peer that came off of highs earlier today of one to seven but we have seen the kiwi yield jumped to the highest. it was up at 2.01 percent. this as we see auckland -- new zealand come out of locked apart from auckland, and that is as you start to price in that we are not expecting interest rate hikes from the rba but will we see them from the likes of the bank of korea, the rbnz? the market seems to think that it could be on a path to hiking.

tom. tom: juliette saly, thank you. central banks around the world are grappling with when to end unprecedented monetary support. juliette just laid out that brb inside, in terms of recovery, the delta virus continues to have an impact. the delta variant poses risks. they are -- they revised down there forecast to 5.7% from 6%, 19 to a harder path for the american consumer. in august, they predicted 6% growth in 2021. manus: let's take that, james, and put that to james afee -- james athey from evergreen standard. let's reflect on this rba. i like the way that juliette pitched it which was that everyone is ready for a hawkish tilt. you got that. right you are dovish.

listing -- the sting came out. hawkish tilt or hawkish tilt with the sting removed? james: this is the way that monetary policy is operating and it is somewhat heartbreaking. not really sure any economist can explain to you the differences in those two policies in relation to the real economy. the rbnz a few weeks back balked at hiking rates at a meeting that was fully priced, more than fully priced, 27 to 28 basis points for that meeting, and they brought after the delta variant emerged in new zealand. they clarified it was merely a concern around communication. central bankers are struggling with the notion that they should be setting policy for the

economy one years or two years hence but, obviously, proximate conditions factor into their thinking quite significantly. when the two are in opposition to one another, that gives them a bit of a headache. i do not see this as being super significant for the australian economy at all. i don't think it is significant for financial markets, the change that they just made. tom: goldman joining others, downgrading the growth outlook for the u.s. 5.7% from 6%. is there consensus on the u.s. outlook still overly bullish? james: yes, it is. it's incredibly complicated. of course, we have been through this unprecedented problem with unprecedented policy actions and an unprecedented degree of global coordination because the pandemic law down. i was always very skeptical of growth forecasts for this year but also for next year on the basis that the levels -- the

growth will be implied in a lot of these forecasts. it seemed incredible given the state of the labor market and can tumor balance sheet. what i see in front of me is that it is a pretty large fiscal headwind between now and the end of next year as the fiscal impulse turns materially negative. the change in deficit has gone from a huge positive to something that is a relatively small negative. it needs to fill the gap. unemployment is still two points to four points above where it would have been at the end of 2019 yet personal consumption expenditures are already 20% or so above that level. i at all that up and say there is a significant gap for the private sector to fill from what looks to be an art of chilly unabated option. heavily reliant on business invest. it is too small a segment of the economy to do so easily.

manus: can we round off your global perspective on risk today? you expect more volatility. you sent a warning up about the risks that could be out there. so how do you play that? i'm interested. you want to be long core u.s., but you want to do it on the spreads, and i'm just curious how that plays out to your currency exposure and bond exposure. give us your top lines on preparedness for vol. james: i think we have gone through the stages of the economic cycle, mid to late cycle, and that tends to be a volatile problem for risky assets. if i look into the future, i see two states of the world. my growth outlook is correct and i think duration is a buy because risk assets are a sell.

if i'm wrong and the growth outlook is better, than i think that the fed will be under pressure to continue. in either of those worlds, it is flatter. i see the u.s. dollar is stronger. i see a long u.s. dollar position capturing the bimodal outcomes, if you like, and i that as the bulk of distribution. tom: stronger greenback, flatter yield curve. james athey, investment director, thank you for joining us this tuesday morning. coming up, after 18 months away, brokers returned to the floor of the london metal exchange. we have got that story, next. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. tom mackenzie in london. 18 months away from the floor, the brokers have returned. they are iconic, the red leather couches on the floor of the london metal exchange and this is where they set the benchmark prices for everything from copper to aluminum. it is open outcry like you really cannot believe. it is a passionate environment. that's bring in our metals reporter, mark. how did the first day go for trading? they got back in the ring but what about the market? what about volumes? how did things turn out? mark: thank you for having me. the first thing to say is that it was not a disaster. and actually, that is quite the

feat in itself because it has a very complex system of hand gestures and vocal commands and market conduct rules. and having spoken to dealers as they were preparing for the return of the ring, there was clearly worry in the background that they might little rusty after 18 months away. as far as we know, there were no breaches of market conduct rules. no one brought their trading signals wrong, and everything went smoothly from that interview. i spoke to him yesterday and he said he was happy. crucially, that the liquidity had returned to the floor, enabling the floor to form its crucial role as providing encz marc copper, aluminum, zinc prices for the physical world, and that ultimately is what this

revival is all about. it is about giving producers, consumers, those prices that have been set in the ring for about 150 years, bringing that back so that the certainty that it provides and the flexibility it provides is not confined to history just yet. there is a wrinkle in its return in that they are not performing all of the functions they use to before the pandemic. crucially, there is a -- tom: we are running short of time, but thank you. the ring is back. let's hope that it stays that way. mark burton, thank you very much indeed. the asian market is up. the msci asia pacific. we will be talking aluminum, next.

ginny's new -- what it means for commodity markets. this is bloomberg. ♪

tom: good morning from bloomberg's european headquarters. it is 6:30 a.m. in the city of london. i am tom mackenzie with manus cranny from dubai. this is "bloomberg daybreak: europe." here is what you need to know. trade withstands new outbreaks and foreclosures. george soros says blackrock is pouring billions into the country and it's a tragic mistake. goldman cuts its forecast for

u.s. growth as the pandemic continues to weigh on consumer spending. germany's engine stalls. the global supply crunch threatens the nation's recovery. we get the survey on economic sentiment this morning. the handover is going to be positive once again for europe from the asian session. the msci asia pacific is gaining .4%, another positive day in japan. the reshuffling of the index when it comes to the nikkei 225 and then strength as well from china when it comes to that data. also bets back on china tech. manus: to some extent, everyone is looking at china. we are going to dig a little bit deeper into that, but aluminum, and this is the important thing. we talked about the 10 year high in aluminum. we get a little bit more clarity about what is going on in guinea .

the maritime borders are open. this is the chart you and i touched on yesterday. they are saying their projects are all in operation as normal. that chart belies a little moment of leave in this story. tom: it seems so. the ports are still open by our parts. if they are entrenched around the two and the military, no -- coup and the military. the revenues, they need them. this is the story we will keep across when we get into the details later in the hour. ok, so that is how things are shaping up on them metals from and the commodities front, manus. manus: we packed some of this into the market and the china story, the less hawkish taper from australia, asian stocks flying higher and that has been driven in part by the

sentiment in japan so asian stocks, a 5.4%, strong export and import data from china. you come back from your labor day holiday and you believe it is a taper delayed, not denied, to quote state street from yesterday. china, the csi up. the money is piling in and that is what we saw in the past couple of months. money has piled in month after month from china even though george soros lambasted blackrock. let's roll it over. there is the nikkei for you, just under 30,000. the highs from april. oil is higher this morning. that i think is a boost on the back of the china import and export data and the aussie dollar spiked higher on the fact that they are continuing with the taper that they promised. 5 billion to 4 billion, but a warning that they will review that at the start of 2022, not november.

a little bit of sting comes out. bitcoin up at 1.25%. simone foxman has your first word headlines. simone. simone: thanks, manus. boris johnson will announce his long-awaited plan to reform social care later today. he risks a major dispute with his party over attacks bribe that could hit younger people the hardest. if confirmed, a 10 billion bound increase -- pound increase would break a pledge in the conservative party's manifesto. deutsche telekom has entered into an agreement to sell t-mobile netherlands to partners. the germany phone giant will receive 3.8 billion euros in net cash proceeds from the transaction. the deal gives the dutch unit and enterprise value of over 5 billion euros. prosecutors in the northern chinese city have dropped their case against the former alibaba

manager accused of sexual assault by a subordinate. they say the man's behavior did not constitute a criminal offense so local police detained him for a lesser offense of indecency. the man's arrest sparked widespread debate about the treatment of female workers at companies in china. george soros clog blackrock china push a tragic mistake that threatens u.s. security interests. the billionaire financier wrote that the move is also likely to lose money for the firm's clients. blackrock is leading a global foray into china's asset management industry two months after winning approval to become the nation's first fully foreign-owned usual fund. 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. tom. tom: ok, simone foxman, in delhi. thank could el salvador will become the first country in the world to adopt a cryptocurrency

as legal tender. that kicks in later today. the president says the country holds 400 bitcoin. it plans to buy a lot more according to the president. it will circulate alongside the national current, the u.s. dollar. they have their own wallet, bitcoin wallet. each person in el salvador will get $30 worth of coin from today. there are concerns around transparency, around money laundering risks from this, and others on the political front. the u.s. certainly suggesting that maybe this is a distraction from some of the changes politically, domestically, within el salvador, where the u.s. scribed their democracy as being in decay but it is about bitcoin today. tuesday is when it kicks off in el salvador, the first country to adopt the cryptocurrency. manus. manus: yes, and of course, the 40-year-old said it will draw

more people into the financial system and make it a cheaper way to send remittances. you know the debate as we go towards that is going to be around the greenness of bitcoin, the mining that takes place, you know, and that has migrated. you have just come home from beijing ready have just come home from china, which was grappling with that in many ways , so i think that that is going to be probably one of the more limiting factors as we go forward on the bitcoins lori, but for the moment, fremont -- bitcoin story, but for the moment, free money. you touched on the el salvador story and this goes back to the military junta that power in guinea. they urged mining companies to keep operating. this comes as the aluminum price surged on the news of the coup attempt amid fears that bauxite

would be disrupted. let's get to the head of aluminum consulting. great to have you with us and thank you for taking the time. >> thank you for having me. manus: the market is trying to grapple and understand. we saw this huge spike in aluminum prices but give us the exact sort of supply-side from guinea. we are hearing that the maritime borders are open so just how much of a risk is it to the world market of a constriction in bauxite from guinea? good morning. >> good morning to you. i would like to explain that the value chain of the aluminum industry starts with bauxite mining. in the aluminum smelting is two steps ahead in the production value chain. so we believe there is a direct correlation between that and bauxite production.

and the impact on the aluminum industry. there is a process in the middle, the refinement of bauxite into aluminum and aluminum is the direct import from aluminum smelting. if we talk about prices, this is not necessarily directly link the recent events in west africa. it is actually a fundamental issue. if you look at the fundamentals, they are quite strong and they have been supporting primary aluminum prices to their highest levels in the last few years. tom: some other factors at play so let's keep it focused on guinea for the moment. can you give us a sense from your contacts on the ground, what is the extent of disruptions we are seeing, if any? zaid: we have not seen any disruptions at the moment. bear in mind that the events are

taking place primarily in the capital. most of the bauxite mines are located in the northwest and west of the country. so particularly like for example, things like -- 250 kilometers away. we have not been hearing any disruptions. indeed, the new leaders of the country have stated that there is not going to be any disruptions for mining corporations for the time being but we will have to wait and see when the gust has settled, see what the impact is going to be. manus: we have seen china on a number of other commodities come out and release strategic reserves. what is your estimate of the reserves that china has of bauxite? many people sort of said this is the core importer of guinea bauxite what you would say that there are ample reserves. put the context around that. and the supply side, global

supply around bauxite. frame that for us. zaid: if we go back a few years ago, there were almost no exports of oxide into guinea. -- bauxite into guinea. china is the world's largest consumer of bauxite and imports almost half of its bauxite need from guinea. there is a strategic stockpile currently in china, we estimate around -- so if we look at that level of inventory, that would be sufficient for about six months of chinese imports. so if we look into that, the disruptions have to be elongated for several months until we see the real impact actually -- basically, we see a supply constraint. manus: -- tom: before we let you go, what is your outlook for

prices, currently at a 10 year high? zaid: primary. zaid: yes -- tom: yes. zaid: we see prices peeking next year before stabilizing. tom: ok. head of aluminum, thank you for breaking that story down for us, zaid aljanabi. we will turn to europe's biggest economy. more german economic data is due out today. a squeeze of global supply shortages. that story is next. this is bloomberg. ♪

manus: this is "bloomberg daybreak: europe." i am manus cranny in dubai. tom mackenzie alongside me at london hq.

the survey for german economic sentiment is due out later today. it will shed light. german manufacturing data surprised to the upside in july. companies expressed their concerns about the impact of higher prices and shortages of materials. maria tadeo is in berlin with all things german. inflation up at levels we have not seen 2008 so it is a worry for the bundesbank. this is like shockwaves. maria: yes. we will see how much of a worry it is for the german central bank on thursday when the east be meets but you know, overall, when you look at the german economy, it is hard to tell what is the state of this recovery because we do have data points that contradict each other and the narrative that we heard from the german industries and also the companies that say they worry a lot about prices but also about big supply issues

coming across everything. it's not just chips but things like metal and even paper. yesterday, as you said, we did get the pickup in factory orders. it was a much better than expected number. economies were expecting a decline. we got 2.4% from the previous month and today just now, they put out another survey in which they say they see production expectations improving for the german industry in august in what would be the best value in months. sub 27 percent. overall, it is a narrative of two angst. some momentum going into august. it's interesting to see that a lot of the demand was coming months on the european union and that concern we hear repeatedly from the german industry about big supply issues coming in and kicking in in the backend end of the year. tom: to what extent is this economic uncertainty in germany playing into the election? maria: well, it does.

germany is in a moment of transition. when you look at their economic model, the german industry, growing greener, all of this is feeding into the political debate in germany. when you look at polls, germans say that social equality is something that they value deep the and care about area what we are seeing in the campaign is two sides into the debate. the spd and the greens repeatedly say they want more social justice in the everyday lives of germans, and then you have the likes of this new but also -- the cdu. the liberals saying they need to protect this industry. it is at a moment of big change and they will have to be kind of helped into this big transition going forward, especially when you look at the green transition and the deadlines on the horizon , coming in from the european union. it is one of the big topics in the election alongside climate, which is the perennial issue in the german public bay. tom: those factors playing into

the all-important general election. maria tadeo on the ground for us in berlin. thank you. let's get the picture for the car industry. maria touched on the importance of the auto industry. that's get our editor, craig -- let's get our editor, craig, for more on this. why are they so pessimistic about the chip shortage? craig: it is a case of being snaked at once, twice, three times. we started this year with expectations that there was going to be a serious issue in terms of supply not meeting demand for chips and then you had sort of the triple whammy of a situation where we had winter storms and extreme weather in the u.s. that wiped out some chip companies. we had a higher in japan, and more recently, we had some plant shutdowns in southeast asia related to covert outbreaks there. so we have had issues where, you

know, once, twice, three times now, the industry has really been, you know, sort of knocked out in terms of its supply chain. the chip industry has really struggled to sort of get back onto its feet, and car companies are now i think really sort of turning conservative after sort of addicting that, you know, potentially, they may turn the corner. they are especially worried about this issue of covert outbreaks continuing to class trouble for their supply chain until more of the global population is vaccinated. manus: interesting. we have matt miller catching up with some of the auto ceo's and they are deploying the chips judiciously to the most profitable products. what are we expecting to see from the second media day at the auto show? craig: i hear from the chip side of the equation so we will hear bloomberg tv will have the ceo of all, on later today and we

will also hear from the ceo of intel at the show. we will hear from angela merkel and this will be her last german auto show as chancellor. there has been a lot of talk about, you know, the need to invest in this and for germany to be less reliant on, you know, outside sources. we have the world's largest auto supplier based in germany making some small investments but they are really more of a consumer than a sip buyer of chips themselves. they don't make microcontrollers, which is where the pinch point is really being felt for the industry. they are concerned about this, too. i think that they are sort of echoing that we heard from volkswagen's ceo on bloomberg tv yesterday that, you know, this is an issue that may be a

bottleneck for months and potentially years to come. manus: where are we in the eva transition for german automakers and supply chain and assuring that they have those adequate funds is but also retraining, retooling the workforce? craig: you mentioned that they are strategically directing chips to their most profitable models. i think what we will also see is that they will strategically direct chips to electric vehicles both because -- both because that is just the direction their lineups are headed but also because they need to from a compliance respect and what we are's been at the show this week is almost every new product that we see is an electric vehicle. we are seeing mercedes bring out an electric version of ve class, electric g wagon concept, which is very interesting. bmw talking about massively

increasing its orders for battery cells so it's the buzz of this show and we are seeing evidence of the transition before our eyes. manus: let's see what today brings. a lot of g wagons in this part of the world. bloomberg's craig trudell. we will talk about what the agenda is for the rest of your day. a bloomberg opinion piece out by john authers says goldilocks has a market in a headlock. that is at 10:00 a.m. and the munich auto show. what else have we got? tom: when you are looking at the survey, consumer sentiment of the industrial sentiment, is no survey sentiment out of germany will give us a sense of the direction of the outlook and we are looking at the el salvador story.

bitcoin being adopted in that country. is it a political ploy? will it actually improve transactions and transparency in that country? that starts officially later today. plenty more ahead. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. tom mackenzie alongside me. we have both been reflecting on what john authers has had to say. i love the headline because it placed my inner trash, which is cody lots has the equity markets in a headlock. i'm high-quality trash. it is a great visual, isn't it? goldilocks, fomo, don't get left

behind, just continue to buy the dip. this is what john was saying. it's all around inflation, isn't it, tom? tom: yes, whatever these markets get thrown at them, they continue to grind higher. it seems investors have their own optimistic list framework. central bank support continues to underpin that. they fit the data into that narratives but there is a concern around the edges about stagflation given that prices continue to be quite stubbornly high. the growth is starting to peak. the outline around the globe and we saw that downgrade of orders from goldman tax so that remains a concern as well, manus. manus: two things have come to bury over the past couple of days. date three yesterday banking on a taper delay. get ready for more volume. wants to belong u.s. treasuries and be long the dollar. deutsche telekom will be in

play, guys and girls, because of course they sold part of their assets. u.s. futures are a little bit higher this morning. there is deuts tom: that is it from bloomberg. stay with us. ♪ (announcer) looking for a better way to lose weight and feel good?

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anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london. mark cudmore joins us from singapore to take us through all the market action this hour. the cash trade is less than one hour away. here are your top headlines. a tragic mistake. george soros slams blackrock for pouring billions into china. exports surge in the world's second-largest economy as trade withstands new outbreaks and foreclosures.