manus: good morning from bloomberg's middle east headquarters in dubai. i am manus cranny with dani burger alongside me in london hq. data disappointment. china's third quarter gdp misses estimates as the property slump and energy crisis way on -- weigh on the economy. andrew bailey says the boe will

have to act amid inflation concerns. treasury yields the highest since february 2020. plus, gridlocked. global port congestion stretches supply chains, threatening the holiday shopping season and threatening higher prices. monday morning, a whole new "daybreak: europem" but the same voices banging the global rates drum. what we have is the risk, look at the rates, two-year government bonds, we are going to put on the screen. this is a doubling of rates in the u.s. on the short end by 40 basis points. they have doubled, the risk is a handbrake turn, that is what the risk is for central banks. dani: good morning. it is drama in the belly here, and i'm not talking about the overindulgent lunch.

it might be a risk of a handbrake turn, but what is it mean for risk? the concern we discussed this morning is a possible bar shock. manus: exactly. as you get repricing from the kiwi bond, the aussie bond. i go back to steven major and it sits in my hand. when they move, it sets the tonality for the rest of the global markets. just had a conversation and they made it clear equities could levitate for a while but there is a risk that if central banks raise rates and you have gas prices rising, tax rising, rates rising, it is a potential car crash where you go through the windscreen. that is the central bank conundrum. kiwi paper on a five-year yield, over 2% bit this is the risk. -- over 2%.

this is the risk. dani: the risk is what bank of america has been talking about as well. 2020, the stock markets went through was gross, 2021 is inflation, and 2022 could be a rate shock. what does that mean for risk markets? you want to sell those risks and equity and credit markets. that may show you what is happening on the board. we have a weaker s&p 500 future, down 1/10 of 1%. those rate shocks feeding into an environment were you want to sell risks. the five-year yield, we are folky -- we are focusing on that. a 10 year high. brent crude up more than 1%. we've seen this huge move in commodity markets, just rent, it is zinc and aluminum and copper. manus: you say aluminum, you know what i say?

we come back to that differential in a moment. low single-digit growth. phillips, we know they have to withdraw and repair some of their sleep apnea machines. third-quarter revenue, 4.1 6 billion, a small miss. adjusting, 512 billion, down 25% on the year. still seeing strong demand in the third quarter but they now see a full year, modest adjusted evident margin improvement and there is the performance, down 3.76%. we are talking about machines that do a lot of the analytics for hospitals. we will dig into those questions. the revenue is a miss. sales, 1.0 4 billion. we will catch up with our guest

shortly. it is all about china and the data. dani: it really is, and in that data, we saw china's economy weakening in the third quarter, gdp expanded 4.9%. that from a year earlier, down 7.9% the preceding quarter. for more, let's go to our editor in beijing. what is the first reaction to these gdp figures? james: i think part of it is just this is somewhat expected, you see in the evergrande crisis lumbering through the third quarter and spreading to other companies in the housing sector. that has cut back on housing investment and cut back a little spending on homes. you also saw the energy shortage that happened in september with power shortages across china

because of high prices for coal and other energy, and also a lack of supply. i think you saw, the numbers we saw, a little lower than expected but basically a lot of that was priced in, people expecting bad industrial output numbers and they got those. for me, a little bit of surprise was the pickup in retail sales. we've seen retail sales slumming through the year and we saw little rebound. not back where it should have been come up before covid, but a little improvement. that had been underperforming in the chinese economy. manus: we are just showing some of the cuts projected for overall growth in 2021. goldman sachs looking at 7.8%. great work. our china economy editor there in beijing. let's pivot to the pboc, they've woken their silence on the

evergrande crisis over the weekend, saying the risks are controllable. >> i think overall, we can contain the evergrande risk, and first we will try to prevent the contagion from evergrande into other real estate companies. second, we will try to contain the risk for the financial sector. manus: let's get to our north asia correspondent, stephen engle. controllable, containable, no contagion -- what is your take? stephen: james mager just said about this lumbering along, and it is still a pillar of the chinese economy, but on evergrande, the big story aside from the 300 elliott-plus dollars in liability and the potential default is the fact

authorities have not really spoken out about it. they referred to the risks in the property market. we just heard about containing the risks to other property developers but at the same time, we haven't had specific comments from evergrande about what authorities are doing until our own kathleen hays posed the question directly at the g 30 financial group virtual meeting. before, he had commented about risks in the sector but did not name evergrande by name. so we got him on record saying he feels that potential contagion is contained. keep in mind, as you know, the markets have been very nervous about this lumbering on of the on -- of the unwinding of evergrande, and it's fast assets now essentially being sold on pennies on the dollar. we have other companies like fantasia defaulting.

we have another warning last week they are in imminent risk of defaulting. there are still concerns. he tried to buffett that a little by saying we have it contained. dani: sensing those risks. thank you. let's see how asian markets are faring, because that is factoring into things, along with this massive move in the belly of the curve across global sovereign bonds. those get to juliette saly in singapore. how are things shaping up? juliette: about these inflation concerns, the risk off tone across asia. we've been watching moves on china's 10 year yield. following the deceleration in growth james was talking about. easing concerns about potentially monetary stimulus from the pboc if they can contain the evergrande crisis. we are also watching new zealand and australia yield plumbing today. inflation in new zealand

climbing at the highest pace since 2011, an annual rate of 4.9%. the key we pretty flat rising. this is going through into concerns as to whether or not we will see further hikes coming through from the rbnz. jp morgan suggesting we will see further hikes in the coming months, and westpac saying this will pick up as we see the holiday shopping season continue. manus: juliette saly in singapore. we will see you shortly. some of the things to set the agenda for today, and for the week, central bank talks, more at 10:00 a.m. u.k. time. the ecb governing council will speak. this afternoon, we hear from john cunliffe. will he reinforce?

dani: the other big thread is will manus be buying a new macbook pro? apple is going to unveil the first revamp in five years. the biggest change is replacing intel chips with apple designed processors. plus, the first u.s. coin futures, and an etf that could end an at your wait for securities tracking on the u.s. stock market. we've seen bitcoin join just -- jump. were going to talk about another sizable move, focus shifting toward rate hikes by central banks. more on that next. this is bloomberg. ♪

>> the energy story particularly means it will last longer. and it will of course get into the annual numbers, there is a consequence of that. that raises for central banks the fear and concern of expectations. we will have to act, but the action comes in policy meetings. dani: another signal, the bank of england governors saying the central bank will have to act to curb inflationary pressures. inflationary pressure is being felt from europe to new zealand and the u.s., the focus turning toward rate hikes by central banks. joining us to discuss is our guest.

scott, thank you for joining us this morning. a perfect day to have you on. looking at the five-year, at its highest level yield since february 2020, are you preparing your clients and portfolios for a possible rate shock to come? scott: we think it is important to note that the five-year is the underperformer. five and 10 is flattening suggest market participants are concerned about the next few years. we talked about higher inflation and it is in our minds. one has been a restart of the economy following covid and the other is the supply chain issues that have exacerbated higher prices. we are calling for yields to continue to rise in treasuries but we believe the fed rate hiking path will be relatively shallow, all things considered. again, in our mind this is a supply shock driving inflation higher. it may be with us for some time, into 2022, but we believe it

will slowly ease as this year turns to next. manus: good morning to you. so you think it is transitory and perhaps persistently transitory. scott: [chuckles] manus: what does that mean the market has got wrong? the u.s. yield pricing in two rate hikes 2022. is that too much or is that the market hurrying the fed along? scott: it's an interesting dynamic. it is an unusual environment we are in. the restart, the covid crisis are things policymakers have not had to deal with in the past. the market is trying to figure out whether policymakers will lean against the inflation we are seeing, whether they believe as we just heard the bank of england governors saying, whether it is transitory or not. our view is there are too many rate hikes priced in for 2022.

we believe the right path will be shallower than the current marcy -- current market pricing. but obviously there is a very active debate given the levels of inflation we are seeing. to answer the question directly, we see less in 2022 than the market is predicting. dani: part of that active the bait is the u.s. consumer -- active debate is the u.s. consumer. there are trillions of dollars the u.s. consumer is not yet spending. sentiment readings weaker on friday as well. what do you make of the u.s. consumer? scott: this is an important point. one of the big differences between now and the 1970's and why we think the stagflation analyses -- comparison is incorrect is the economy still has room to grow in the u.s.. to your point exactly, we believe there is more room to grow and the economy will continue to expand. we have a supply shock in

energy, but we believe demand will rise to meet that. supply will rise to meet that demand. we are more positive on the economy going forward, and for us, that is a very important point and underpins our view around equities but also underpins why this is not the stagflation scenario from the 1970's. manus: so it is not the 1970's, inflation will roll over. a lot of people have come on the show and said we don't want to be long-duration, we want to shorten that portfolio exposure. i had a guest yesterday who wants to run against that trend because of the narrative of peaking inflation. he wants to take a petroleum risk at 50 and 70 year bonds. where are you? scott: we are short on duration, our recommended plans are short of the benchmark and have less interest rate exposure.

we would take the opposite view. the view is the rate path, the monetary policy rate path will be shallower, but we continue to see bond yields rising over time. in part because we believe they are at the wrong level to begin with given the level of economic activity we have seen, and there continues to be an adjustment higher in interest rates, albeit not as violent as the last two weeks. we continue to believe interest rates will rise over time. manus: i love some violence in the bond market, it takes me back to 1994. scott, stay with us. i am not taking a back to 1994, it was ugly. scott: please don't. [laughter] manus: juliette saly has the first word news. juliette: the pboc governor says the 30's can contain risks to the chinese economy and financial system from the evergrande crisis. concerns about the cash crunch is spilling over to other developers as president xi

jinping maintains measures to cool the market. the inflation rate jumped more in the third quarter, the fastest pace in 10 years, reinforcing bets that the central bank continue raising interest rates. it surged to 4.9% from 3.4% in the previous period. netflix's squid game will get almost $900 million in value for the company. the smash hit stands out as a cost just over 4 million to produce. even investors critical of the company expect it will either lift its performance in the third quarter or its forecast for the fourth quarter, if not both. 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. dani: thank you. juliette saly in singapore. coming outcome of the pboc says while momentum has slowed in the

chinese economy, the post-pandemic recovery remains intact. we have more on the third-quarter gdp figures next. this is bloomberg. ♪ ♪

manus: it is "daybreak: europe." the pboc governor says the recovery of the chinese economy remains intact. gdp growth slowed this quarter, 4.9 compared to 7.9 the previous quarter. he forecast the economy would expand by 8% this year. scott is still with us. there is optimism that growth will fire through on the energy rises and let's say the controlled slow down in the

building industry. do you share that enthusiasm, 8% growth, what would that do to your equity exposure in china? scott: listen, i think the chinese growth story is very interesting, way down from first quarter numbers, plus 17% in q1. 2022 is very important for china, we have the olympics, the party congress, and the growth target for the country is 6% and we believe they will do everything they can to get growth levels back to that for the year of 2022. which in our mind means they will use levers like physical policy -- fiscal policy and monetary policy and even regulatory policy to achieve those goals. we are positive on chinese equities on the view that despite the recent lamp down activity, with -- clamp down activity, with the underperformance of chinese equities relative to the u.s.,

the authorities will use the levers they have to get growth back to where it needs to be. in our mind, that is positive for chinese equities so we are positive on chinese equities. dani: can i just buy the hang seng or the csi 300? where are you finding the opportunity? scott: good question. one of the areas, housing construction, the parts of evergrande you were talking about before i came on, obviously there is a lot of uncertainty there and there were clearly be impact from those of sectors related to what is happening with the company. that said, we think the broader chinese economy remains solid as mentioned, and again, the levers will help the stock market as well. broadly, the index will be in an interesting place. manus: how brave are you on high-yield? we've got the evergrande effect on high-yield, it is blowing out. in the break you said this is

for the active manager. how do you look at high-yield? how do i benchmark this relative to the rest of the world? scott: japan is about 650 wider on spread for the year. this is u.s. denominated bonds. u.s. corporate high-yield is about 20-30 tighter on the yield -- on the year. there's been a tremendous amount of underperformance. as we were talking before, i think stockpicking or in this case, bond picking, it will be an important part of the investment here because you want to invest in the company's you think, obviously outside regulatory clamp down, but also that look most attractive. i think chinese high-yield is for the active manager. dani: at the same time, the past few years we've seen more chinese bonds incorporated into global bond indexes.

is it a fear because there is exposure to these type of markets? scott: the biggest exposure is the chinese government bond market, which will continue to increase in size and has grown substantially and will continue to grow. we are both tactically and strategically positive on chinese government bonds, very high real yields, and obviously increasing liquidity and inclusion as time goes on. for investor sticking about china's exposure to indexes, it's mostly chinese government bonds, and there we have a long-term positive view. dani: scott, always brave on china, a long-term positive view. so fantastic to have you. thank you for joining us. coming up, gridlocked -- supply chains already threatening the holiday shopping season. we will look at that story, next and what it means for these risk

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dani: good morning from bloomberg's european headquarters, it has just gone 6:30 a.m. in london. i am dani burger alongside manus cranny in dubai. data disappointment. gdp estimates miss as a properties a slump into the energy crisis weigh on the economy. surging energy crisis of stoke global inflation concerns. andrew bailey says the boe will have to act.

five year treasury yields the highest since february 2020. plus, gridlocked. global port congestion threatens the holiday shopping season. manus, good morning. it is all about bonds with perhaps a healthy tinge of commodity moves as well. what caught my eye this morning is the global macro movers. if you look at that screen, we have two nice black boxes on your bond screen. it is aussie, it is kiwi, and that means it is a more than three standard deviation move. could this be a coming bar shock if this spreads globally? manus: yep, we just have a conversation with scott from blackrock. he talks about the violence the past couple of weeks, he thinks inflation will top off. this is the narrative, martin malone gave it to us last week,

be careful how you anticipate the bar shocks to come. blackrock believe we will top out in inflation. the violent repricing we have seen perhaps will not endure. the u.s. way ahead of itself. i think we are juxtaposed between the risk of handbrake turn, the risk of a central bank handbrake turn, versus the topping out on inflation. dani: and it is the oxymoron, persistently transitory inflation, that we are trying to wrap our heads around this morning. with the yields climbing ever higher. manus: yeah, that is just the reinvention of the narrative for the central bank. i am afraid i cannot buy into persistently... well, i am lost for words. let's look at the markets, they are more interesting. the reduction and repricing and the qb and australian rates market is having -- the kiwi and

australian rates market is having a time. yet equity markets levitate. the equity market says so what? we are not bothered. at the moment. that could change as we ramp up. 160.35, and brent up six weeks in a row and rising. a lot of people talking about was traction of supply in that market. that is the state of play on equities could -- on equities this morning. now, cargo has jammed at china's seaports, more companies turning to airfreight as an alternative, that airlines struggling as well. to cap the demand, jd.com planning to expand the logistics

arm. >> covid has heavily impacted the global supply chain industry. many companies have encountered different challenges and difficulties during the pandemic. we see the shortage of resources in shipping and air france. we believe it is your short-term impact, but for the long term, global trade flows will return to normal. we are preparing to set up our own airfreight cargo company that was recently approved by authorities. >> the airfreight services for jd logistics, would you buy planes and operate them yourself? >> yes. we purchased planes or least of them. the cargo freight operation should comply with the country's local regulations in the future, we might own airfreight companies and other countries, so we might own our own planes

and run cargo businesses and comply with local regulations. >>, planes do you think you will need? >> by 2030, i would say it will be less than 100 planes. >> do you have a priority in terms of markets? >> in north america and europe, we will invest massively in warehouse and high-tech automated logistics centers in the next one or two years. we can provide more support chinese sellers who want to do business abroad. china is the world's largest consumer and has a great demand for products overseas. dani: the jd logistics ceo speaking exclusively with bloomberg. let's stay on the global supply story, because ports are growing more gridlocked as the pandemic supply shocks intensify. it is threatening to spoil the holiday shopping season, road

corporate profits and drive up prices. joining us is our correspondent. what is behind the latest delays? >> specifically, we have over 100 ships here off hong kong and shenzhen backed up because we had two typhoons in a row in two weeks. that will ricochet to the u.s. and europe. there will be a delay of goods getting to supermarkets and shopping malls and a greater cost in getting those goods to that point. that will delay the point at which consumers can buy them. when you consider the impact it has on inflation, the kind of feeling is this a supply crunch of story is getting worse and will continue to drag on the global growth recovery. that's what we are seeing in many parts of the world, economists saying the crunch that started at the start of the year contemporary is looking much longer lasting than anticipated.

manus: and yet i would encourage you to go back and listen to the interview with martin malone, he talks about the port of l.a. operating 24 hours in the next two to three months. you will get a growth break in the u.s., something like you have never seen before. so is that one piece of the circuit breaker? the l.a. port is one example. enda: absolutely. to be clear, there are those who say there are a lot of containers being built right now, there are even new ships being built right now and a lot of semiconductors coming down the pipeline. your point, the port of l.a. going flat out to clear the backlog. at some point all of this is going to snap back. when we speak to manufacturers, they are not talking about the christmas holiday season anymore. that ship has either sailed by now or has not sailed at all. they are worried about order books for the spring and summer catalog. they are thinking as a forehead as that.

they don't see a near-term circuit breaker on these issues, and even if we get to a point next year whether is relief across-the-board at all of these chokepoints, i think roughly speaking over the next six months or so, i don't think anybody expects material improvement. the crunch is continuing global demand is still strong. producers, especially in this part of the world, struggling to meet that demand and get goods to the in market. i think the story remains more of an ongoing supply crunch. manus: ok, let's see if it will ease or not. our chief asia economics correspondent. you can track the supply chain, the pain, we've got it all on our port congestion tractor -- tracker on your terminal. you can track every tanker around the world. it is pretty stunning. let's go to juliette saly the first word news. juliette: bank of england's

governor has posted the case for raising interest rates. speaking to an online panel organized by the group of 30, he said the central bank will have to act to curb inflationary forces and warned higher energy costs mean price treasures will linger. traders are betting the boe will start raising rates in the final months of 2021. >> the energy story particularly means it will last longer and it will of course get into the annual numbers as a consequence of that. and that raises for central banks the fear and concern about embedded expectations. that's why we at the bank of england has signaled that we will have to act, but that action comes in our monetary policy meetings. juliette: new zealand's inflation rate jumped more than expected in the third quarter, the fastest pace in three years, enforcing that the central bank will keep raising rates.

the pboc governor says although authorities can contain risks to the chinese economy and financial systems from the evergrande crisis, concerns are growing the cash crunch at evergrande is spilling over to other developers, especially as xi jinping paintings -- maintains efforts to cool the market. 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. dani: thank you so much. juliette saly in singapore. coming up, phillips third-quarter earnings miss estimates. it sees low sickle digits sales growth. we will have all of that with the company ceo, next. this is bloomberg. ♪

manus: this is "bloomberg daybreak: europe," i am manus

cranny into by and dani burger is in london. phillips third-quarter numbers missed estimates, you had a recall and post-covid effect hitting demand. but the dutch multinational says it sees modest growth ahead. joining us now is the ceo, frans van houten. we have the data and numbers, a decline in sales of four 2 billion, single digit growth. what we want to know is can you tell us where are the chokepoints in your supply chain that caused let's say this slowdown? where are the supply bottlenecks at phillips? frans: good morning. it is really a tale of two stories this quarter because we are sitting on a massive order book of 70% are gross and we could not fully deliver that strong order growth.

that's where the supply chain crunch is hitting us. really a matter of chips and ships. we have a shortage of components, and we are seeing delays in the shipping industry and congestion in the ports that probably intensified during the quarter. we saw the biggest impact in september. that set us back at least 150 million in the quarter. dani: great to have you on. in terms of those supply chain issues, what is the plan at phillips in order to alleviate some of those concerns? is there any action you are able to take in order to get those order books fulfilled despite some of the international issues when it comes to shipping and chips? frans: for all of the goods that are already on the way, we are basically part of the system. it is difficult to change it. we are looking for a bit more airfreight and working intensely

with our suppliers to find alternate parts. but in the health care industry, all of your designs are regulated and specific, so not so quick to change. i am frayed that at least for the next one or two quarters, -- i am afraid that the next one or two quarters we need to work through this. i'm also worried about the impact on the first quarter, which is why the full year -- the fourth quarter, which is why the full year guidance has come out low single digits. it is what it is. but i repeat, we have an all-time high order books so we expect to resume a good growth in 2022 and expand as we get things under control. manus: that message loud and clear on the order book. simple question -- are you raising prices, are you forced to raise prices? and across that order books,

what kind of percentage price rises are you putting out there? frans: yeah, the input costs are increasing, i do see some inflationary pressures. we spoke about transportation of course and components, but also labor and raw materials. so that i think is the reality. where possible, we will look at raising prices. when it comes to the order book, those are contracts that were already made earlier, so that you cannot immediately impact. nevertheless, we feel confident about our ability to resume profit expansion next year as well as to realize solid growth. dani: i wonder what you make it generally of the inflationary picture, then, if some of the christ -- price increase can be

sustained and how long do you see the prices sustained? frans: i think the inflationary pressures on materials will probably -- but the increase in the labor rates are likely to stay. we need to look for further productivity enhancements and we have a good path to that further using digitization and robotics. i think we can at phillips further improve productivity. therefore also find compensation as we increasingly can engage with customers remotely. i think we learned that through covid. also, all of our medical equipment can be serviced through the cloud. manus: when we caught up last quarter, it was about buybacks and it was too early you said to

give me numbers or guidance on the sleep apnea litigation. can we ask again, have you come up with any financial estimate on your exposure let's say for the u.s. or worldwide on the cpap recall? frans: thank you for asking. let's start with the picture on the side of the patients. our first priority is dealing with the impact on patients. and out of a cautionary point of view, we are repairing and replacing all of the units that are out there, 3.5-4 million units and we are well out of the gate. we have a replace program. we have produced in the meantime 750,000 repair kits, they have reached over 250,000 units in the field. of course there is much more to be done, but i am really glad we are now in full motion in

dealing with the potential impact on patients. of course, there is uncertainty in the market. analysts and investors are asking for more information and i completely understand that because they need that to be able to assess the risk, and especially the risk of litigation. we are working very hard to get many more data points to characterize the risk. back in april when we came out, we had to take what is called a worst-case scenario. we had hoped and expectations that with more data and external experts, that we are able to characterize these risks much better for everybody involved. it just takes time. i know that is not a popular statement, that as we work through the quarter, i hope to be able in a transparent manner

to come back to markets with more information. manus: that is one thing you have done consistently when you join us. cut sq, i love a slightly abstract question. you have these bottlenecks in ships and chips. you have to learn how to grow and look at yourself and not be caught short again in the next 5-10 years. would you ever vertically buy chip reduction? even as a blue sky solution? i will get my own chip factory. frans: chips and ships would be a different line of business for phillips, we focus on health technology. [laughter] i heard your previous guest from jd.com massively investing in aircraft and ships, so perhaps a year from now we are not looking at this type market and we at

phillips will also not have an issue. we will continue to invest in innovation for health care. very excited about that. we spoke in the beginning of the interview around 70% order growth. we signed up 19 care providers because they really love the strategy we have around connecting care in different ways and leveraging informatics and data science to get more confident diagnoses and more precise treatment. so that is what we are fully setting our mind on. i think you can expect a lot more innovations from us as we work to improve people's lives. dani: it certainly would be exciting to see some phillips ships and aircraft. maybe that is not on the cards anytime soon. [laughter] frans van houten, thank you for joining us this morning. coming up, we will talk about the first u.s. bitcoin futures etf, it debut today.

also, what to watch out for the week as bitcoin surges past $60,000. this is bloomberg. ♪

>> there are things going on that -- we are making progress with the vaccine. i did not say it on the earnings call that i feel like the virus 's worst impact on the economy is likely behind us but we also have inflationary pressures, particularly on wages, we have an active debate on infrastructure spending and other spending in washington and tax increases. have a complex dynamic between the u.s. and china. there is still some uncertainty around the delta variant. all of that leads to potential

-- it doesn't mean there will not be headwinds. i think we will see more sustained economic recovery but i think those are a handful of things have to be washed closely -- watched closely. >> as far as inflation, do you think investors are undercounting how much of an issue this is going to be, and will enforce the fed to hike sooner than people expect? >> well, i think there is no question that inflation is a topic that is front and center with every investor i talk to, and certainly with every ceo running a business of any size or scope. there is real wage inflation across all aspects of the economy right now. certainly because of supply chain constraints, inflation and other inputs, a whole variety of products and services. this is something to watch closely. it is not baked into the cake how it will play out.

dani: the goldman sachs ceo there. the other conversation along with inflation this week has to be bitcoin. trading near $62,000, which of the much highly anticipated bitcoin futures etf set to start trading today. manus: it looks like proshares may be part of that. on the bloomberg crypto index, up one third of 1%. i love mohamed el-erian's tweet, the dream has come true. i don't necessarily think that they will draw away from bitcoin. isn't that bitcoin is the perfect hedge? let's get back on that horse. dani: someone was saying that bitcoin's resilience is part of why it has done so well. manus: keep an eye on

microstrategy. and should tesla be a little more revalued on the back of that coin? that's the other question in the markets. we have been reinvented. you now have me in a radio, everything everybody dreamed of. this is bloomberg. ♪

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anna: good morning. welcome to "bloomberg markets europe." mark cudmore joins me to take us through the market action this hour in london. the cash trade is less than an hour away. here are your top headlines. data disappointment. china's third-quarter gdp misses estimates. andrew