♪♪ ♪♪ >> good morning from our middle east headquarters in dubai. i'm manus cranny. asian stocks track higher, corporation earnings outweigh the inflation concerns. we wait the c.p.i. data.

all time high as demand surges for the first e.t.f. linked to cryptocurrency. and european earning season ratchets up, hit the tape and danny, good morning, a firmly big beat for the chips fourth quarter sales, 4.9 to $5 billion, the estimate was for 5.23. that is a guidance for them there. the interest dividend is 180 and we're looking at a growth level of this year of 35%, so this is the company, of course, dani, that makes the machines, that makes the chips and we will get a little bit more detail in terms of the actual gross margins, 51.7%, third-quarter profit comes in at net profit consensus was 1.63 billion. dani, you have the big old beast

of farmer. dani: that's right, the swiss pharmaco, this is an upgrade to their outlook, manus, they're expecting to grow in the mid single digits from here on out. that is an upgrade in their view. third-quarter sales coming in at a beat as well. 15.97 billion swiss franklin, 15.5 billion swiss franklin is where we were expected, the diagnosticics businesses coming online, that was one of the key businesses we were looking out for. surely what investors will grab on to, manus, is this raise in 2021 view. nancy: o -- manus: ok let's get to one of the huge banks. we have a very clear narrative, dropping over the first nine months at 3.7 billion versus 6.4 billion. the third-quarter profit rises

29% to 7.3 billion. overall this year are falling by 42 parents. the loans are hitting a record, 438 billion is the top line for them there. so this is one of the big beasts of banking, big exposure to turkey. they have enough provisions in terms of their exposure to a country where the currency is imploding. the total income 17.3 billion versus 18.3 billion last year, the cost of risk falls, cost of risk is 106 basis points versus 176, a strong recovery in terms of demand. so that's the state of play for emirates, just to reiterate, it is all about the fourth quarter, the guidance, 4.9 billion to 5.2

and the estimate was for 5.3. dani, it seems as if asia is bolstering the risk narrative, good morning. dani: good morning. earnings coming in fast and thick and some of the beats more than 80% in the u.s. certainly helping some of the sentiment. asia is higher, when it comes to your american equity benchmark index, we are a little changed. this comes off a large tech rally yesterday, the index end at a record high yesterday, a little bit of breather in terms of those gains slightly lower on the benchmark, some bonds selling today, we're looking at yields above 164 on your 10-year yield, certainly some selling on the long end of the curve, a little bit of steepening today. we're looking at an offshore okur that is below 6.4, a little bit of weakness from the yuan today. aluminum, this is a more than three standard deviation gain,

some concerns about growth but also changes to combat some of the heavy inventory withdrawals or should i say aluminum. manus: dani, let's keep an eye on the three standard deev kwations, you're not far away from a shop or a skew, bitcoin, trading fluctuating below the all time high. the veteran traders eyeing the developments with interest and is there a consensus building? >> it's very, very difficult, like for us for our clients, but you end up and you have to be in something that is a tradable vehicle like an e.f.t. it's a very interesting development. manus: tracking bitcoin here. i get worried, i need somebody

to teach me about bitcoin, eric, we're off to the moon, how are you? >> very good, manus, good to see you again. so the debut the bitcoin futures e.t.f. was certainly a strong one. 24 million shares changed hands and just under a billion dollars a turnover. where the market is looking at next is a couple of places, first off, there is a bit of a cue for further bitcoin strategy e.t.s. in the hopper looking ahead to see if they'll also debut in the coming weeks and months. also, we'll take a close look at the price of bitcoin, it's less than a thousand away. as we have seen before, bitcoin price can be volatile. it's both risen and fallen after major market catalysts. it remains to be seen if there is a catalyst for further gains or a profit taking situation.

dani: all help out. let's see how the asia markets are faring so far. let's get to juliette saly in singapore. juliette: more movement coming through in the hang seng tech index higher for a fourth edition, alibaba has gone to the best this month, up as much as 9% today and 27th over the course of the week. a lot of speculation that check regulation is over. you have seen this up 15 basis points today, a little bit of a weaker yuan to a weaker fix and suggestions that they weren't comfortable with and adding liquidity today. let's hear what goldman sachs is a saying about houston or asia.

these virus concerns, "gma" is locked down. growth for india 24% from 20% in 2022. manus. manus: thank you very much, never far from a research note, juliette saly from singapore. in the u.k. we're getting the latest inflations data, we're going to at 4% as we see the effects, a squeeze on real income with the bank of england, i great in the face of that and the hood winds, the brave, lizzi borden joins us. is it critical to the decision? >> they have been ramping up expectations of a bank of

england rank height. clearly the condition of travel, the question is when it's going to come, could it come as soon as november. it makes the inflation even more interesting, it's the last meeting before the november meeting. economists, the same reading as august, there is significantly a bug, 2% target. it's to come from the supply chain, disruption which i have seen, much for step bon than the start of the year. if inflation undershoots the forecast, then markets will be asked if they have gone too far. the question will be is it enough to persuade the dunker of eeled -- that won't come until

just before the december meeting. the bottom line, the inflation print, spike continues, a narrative that it's transitory. dani: thanks for joining us, that's busy burton. with the u.k. data that was mentioned, we have the final reading at 10:00 a.m. london time, manus. manus: 7:00 p.m., so to the other end of the day, how healthy is the u.s. economic, officials are monitoring that economic recover. a dime shift in u.s. economic growth, july to august. you have the taslr reports,

managing the chip shortage as we heard just the other day, chips and ships are the to be. double fun managers, they remained pro episcopal, what's behind the b.o.a. burned manager's service, kanye. caroline: as a courtesies, the world's second large e- economy and the ever great spillover on london final. this is bloomberg.

dani: welcome back to bloomberg day break, i'm dani burger in london with manus cranny in

dubai. they have been souring on growth and expectations, however, positioning remains broadly pro risk bond holdings and u.s. equities, a little bit a country nun drum there. joining us is the managing director global head of research at f and p global ratings. so great to have you on with us this morning. equity markets have been very resilient despite some of the concerns about infrays, china, and in this case slowing growth. what do you make of this resilience in the u.s. equity market? >> yes, good morning, dani, good morning manus. in the equity markets, what is really interesting is the inflection point of which we are, been here since september

basically. we have two very, very small rebounds in the economy, but we are seeing an explanation of head winds going forward with the inflation that remains than expected, the supply chain disruption, the energy prices, all of these are head winds to a very strong word. all we're seeing is maybe a slow down in the growth, but we have global gdp, 5.8% for 2021. some hid winds at this stage. manus: alexandra, good morning, we are trying to understand which bond market is pricing correctly for that stickiness? the bonds that had the worst

loss since 2005. do you know what caught my eye. the u.s. has lost under 3%, europe lost 8%, the u.k. has lost 8 percent. with that kind of data in front of me sticking inflation without lack of loss in the u.s. treasury moments asked me is there rom. coming up with losses of europe and the u.k. alexandra: yeah, that's a good question when we think, getting the bananas to get going. how terrible inflation might be. in the u.s. we have c.p.i. of 4%. that's nearly well of the trend that we have in europe where we

only, so i think it's a very different trend unfolding in these two cases and we do see inflation in europe here on the search of the energy prices and obviously what everybody, not right now, is the education that might have been presented. i'll see you with changes and we expect now, for instance, that the tech myope -- before the end of next year. dani: you don't see them increasing rates before the end of next year, do they start to change their messaging, their own as the market prices into rate hikes, we get this transitory drumbeat for toll.

do they have to maintain what they do? >> the messaging and right bag in doing two to come. clearly now it was subtle for normalizization around the world. it is going to take i'm. we also need you to different chat between the paper ring which we expected by the end of the year. it doesn't need a reduction of the balance sheet. then from the increase. communication and in terms of matching market expectation, all

of this is on the back of a very strong recovery which is positive. what we are going to watch is the potential activities that this might create and the implication for the weakest credit in the market. alex: thanks for putting contex. breaks news comes from necessarily. up in the guidance, two things that strike me here, dani, they're buying foot and drinking coffee. 3.86%. this is the guidance, going from six to 7%, from 7.5%, we're going to 7%, originally they guided a five to six, the best line on this report goes to the

biggest growth to organic numbers was from covey and pew rinna. brian and -->> some relations between the two there. also going to have our exclusive interview . lots of questions to ask there. the first word news with juliette in singapore. >> the government acknowledged worsening in reports. >> 28 days of testing positive

of covid-19, the highest figure since march, however, despite warning of top tines ahead, current measures are keeping the ball out of control. president biden's economic agenda, this by getting rid of or trimming portions of the multibillion package. biden met with both wings of the house on tuesday and shoemaker shoemaker put pressure on him earlier this week. space ex-makes up less than 17% of $240 billion network, however, morgan stanley has a 200 billion celebration for us. space ex-is multiple companies in one. he points to the infrastructure

and explo ration among other capabilities. local news 24 ours a day, bloomberg quick take, in more than 180 countries. this is dani. dani: thanks so much. the london market reveals as drops of 88% this month. we discuss that this month and this is bloomberg.

manus: i'm manus cranny in dubai, dani burger in london.

the melts market taking a breathinger from the race to the record highs. this amid concerns that the energy crisis slowed down the economic recovery. so to discuss it all, we have a commodities reporter martin richie, no tough task for you martin richie this morning. i'm looking at g.m.m., three standard deviation moves lower, cink is 6.4% and copper is dying three, why, good morning. >> yeah, hello there, there are two in the metals markets, the biggest one with regards to the energy creation. we have seen beijing rule out the impressive moves to get full prices on what they call a reasonable range. it was in the announcements yesterday which are aimed to

stabilize coal supplies for the winter. for metals, perhaps some less pressure on the cost particularly nor aluminum which is leading losses this morning. very early days, they speak to its urgency in tackling the energy crisis before the wind that has been pushing up by metals. dani: martin, what do you make of the moves to try and fix some of the supply tightness? martin: yeah, so this is a response to what we have seen are pretty wild moves in copper in particular in the past few weeks. we have seen that available inventories globally in london metal actions warehouses fall to the lowest in i think 47 years and that spurred a real strike in short term prices, people

will pay for immediate delivery of metals. this got the attention of the exchange who have rolled out some technical rules to try and limit the short-term spreads on copper. they also inquired about why there are these recent moves in stockpiles. i think that's got investors a bit spooked as well. when l.m.e. steps in, that's after some extreme moves. dani: all right, martin, thanks so much. that's bloomberg's martin richie on everything metal. manus, some big moves in wall street as well. jamie diman, you're getting a raise and he would have told you it from windsor castle yesterday. manus: it shows these moments, an afternoon with the queen at windsor castle. gets on the call. two things that matter, one is reduction for the wealth manager and loyalty and length of service will be taken into consideration as well. hats off to jamie.

dani: really the two moves of trying to retain talent, paying them more and banks realizing that wealth advisory is going to bring up a lot of profit. coming up, we're talking about china and yuan holding a moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills.

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♪ >> good morning from bloomberg's european head quarters. i'm danny burger alongside manus . this is bloomberg daybreak. corporate earnings subdue inflation concerns. we await c.p.e. data from the uk this morning. bit coin nears its all-time

high. and european earnings season ratchets up with heavyweights necessarily. manus, good morning the most recent bank of america survey is out. and oh, boy, was there a tilt to the bearish sentiment. looking at expectations in terms of inflation, stagnation concerns creeping in as well. manus: you and i talked about this through the morning. it's a bond allocation that i'm drawn to slumped to the lowest of all time. and yet, dani you gave me the contra side to that. what is it that you said do as i do, not as i say. what did you mean by that in terms of allocation?

dani: our expectations for growth are falling and earnings are falling. however, they're adding to commodities, plus, 28% in commodities. they boosted their exposure by 16%. there's this disconnect in the survey fear between fears of growth. there is no alternatives. go up the risks curve by equity ies. manus: that's the same sentiment. if anything it was by uk equities. 3.4% versus 1.5%. the one thing i walk away from here is i looked at the bond market and i can say that the u.s. bond market has lost 2.7 cents the u.s. is nowhere near as bad a right as it is in the uk or as it is in europe. h but let's just look at these

markets , and put it into a better way. you've got a temperance. downtown by .8 of a percent on u.s. equities. 1.65. you are rising incrementally in the bond market yield. longest rise of yield since the beginning of september. the allocation the lowest all-time low allocation case to bond from the b.o.e. survey. you have aluminum come come -- coming back. that's going got an impact on energy and an impact of i put in china but dani that's the context for the market. dani: is china investable? even as the government cracks

down on certain sectors. they shared their views with us. >> china is uninvestable the republic of china just is throwing a bond issue this morning. 30 years at 6.2%. if you want to tie your money with china for the next 30 years with 2.6%, then i encourage you to get out there and do it. >> people have said uninvestable for the last 20 years. when we look at china, we're not focused on the consumer we realize that data and the privacy issues involved in consumer data and population data is actually an issue with every single country in the world. >> i wouldn't say it's completely uninvestable. the sponsor was chinese where we hit up an investor. and the property market caused that to be an extraordinarily great opportunity with very low risk and very high yield.

manus: an offer at what do in china at the milken institute. the pboc with a weaker than expected rate. our senior market economist in sing spore with us. thank you so much for joining us. i listened to them. and what went through my mind is the uninvestable, is this american-pan naphobia? >> basically what happened in the market that we have differing pictures. in china -- on one hand we see that people are concerned about a property market. but on the other hand we see that you know, basically that it's very stable. i think that different investors can have a different perspective

on china. but of course, you know, from an economic's perspective which is my job and basically china's growth is slowing. and of course, we have to see that tech technical signal to continue in china. basically the general picture is still very clear the economy will continue to slow in the next couple of years. dani: is it slowing enough to expect some easier policy to come from the pboc? >> well, in my opinion they should do something. and they have to put some liquidity into the market. but that's far from enough to boost the economy and to boost activities in china so in this case, i think what i can expect is that some marginal support from pbco from china in the coming months.

but worldwide, we'll continue to see a slowdown in the foreseeable future. so my opinion is that, you know, we're going see some kind of support next year if that can be done but in general just kind of support where this feels very, very limited because china continued to its financial leverage particularly in the debt and the property market. manus: can you build on that? what kind of marginal support? will it be a triple r card as significant as a rate cut? and i ask you that because the property sector sh rank by 1.6% in the last quarter. that's the first time since the pandemic. and we haven't seen this sector contract since 1992. but might just take a little bit more than a triple r cut. will it? >> well, you know, basically the

pboc has already, you know, kind of -- this kind of expectation that the r cut can be expected in the short-term. but i think, you know, at some point they could kind of build with it a relatively low rate toward attacking the specific sectors. and in the meantime, my opinion maybe is slightly different from market that i do see a small rate cut in china before the end of this year. so generally that means that, you know, the debt burden can be lowered and be relive ad lib. but -- relived a little bit. but i think it is relief in my opinion to the real economy. regarding the property factor, that will continue to slow down in the next few quarters.

dani: as you say perhaps the market not expecting it, the rate cut. where are you seeing the signals as we got a boost in liquidity wan? does the tone steam be change -- does the tone seem to be changing? >> on the other hand i think the economy is everything. and basically what happened is this money they do liquidity projects and also fixing a little bit, which means that, you know, of course, they want to support a market a little bit. but on the other hand, they don't want to feed it too strongly to change the economy. as long as the inflation can show that the pbo should do something to support the economy even though they continue could to signal to try to do too much. this kind of marginal lending or

easing can be more, can be bigger than expected. dani: right. how really greet have you on this morning. that's hao zohu at commercebank in singapore. now, let's get to juliet. juliet: good afternoon, dain. boris johnson predicting a difficult winter as his government acknowledged worsening data the uk reported 223 deaths within 28 days of testing positive for covid-19 as of tuesday that's the highest figure since march. despite warnings, current measures are keeping the virus under control. congressional democrats broke the stalemate this despite get ting rid of trimming portions of the multi-trillion dollar spending package

the progress came after meeting with both wings on tuesday. and chuck schumer put pressure on democrats to sew up a deal this week. jamie diamond has said that they will boost pay for their wealth advise ors testimony j.p. morgan dialed in from wins or castle before a meeting with the queen to announce a revamp to the pay structure. he advices current advise ors to stick with the bank. g. -- and sales at the brand rose 3.8% from a year earlier that compares with a growth of 8 % in the second quarter. and an increase in the third quarter. global news 24 hours a day on bloomberg and bloomberg quick take with more than 120

countries. this is bloomberg. manus. manus: thank you very much juliette saly in singapore. coming up, the first link in the u.s. makes its debut. it's second highest traders fund ever to the moon. we'll see what the market is. this is bloomberg.

♪ >> i think 70% of the coins out there today are car badge and will go away. the question is just like the internet bubble, which of the companies survive? >> my son and i lived together during the pandemic and he -- he gave me a lecture every day on the fact that i had opined about

bit coin without knowing what i was talking about which is certainly true. >> i can't tell you it's a value. but i won't tell you that you should short it because you know, it's likely to be higher in the coming months >> you have to go push out the risk curve and go for the refield into new things or odd things. >> if you want to be a long crypto currency, probably now is not a bad time get long. dani: howard marks talk about lessons from his sons on the crypto base. who's going to be teaching you about crypto? who do you have to school you? manus: i looked at the producer of the show. we know he can be long with bit coin. there's a great admission in howard marks. there's this building coalition, isn't i? do you know what they -- isn't

it? do you know what they remind me of? when there was this craze on stocks. nobody really knew what dollar mark was. and dollar yem was. suddenly you have retail people coming in and trading cfd's, fx, etc. and this has howard marks and scott mine other who don't want to be left behind. they're not going to be left out of it. >> you values to be -- you have to be an internet person. you you have your own crypto czar. joanna, we have the debut of the e.t.f. i'm wondering if you're giving howard marks some e.t.f. bit coin slopes, but has this opened up the floodgates?

>> thanks for the compliment. hey, dain. it has somewhat increased speculation there will be more e.t.f.'s. value carey is looking to list -- valkyrie is looking into it. and gray scale looking to turn that into an e.f. on spot and not in futures. but they say that spot and futures are linked anyway. so why shouldn't they gate spot on the e.t.f.? manus: scott mine or didn't kick back and he came on the tele a few months ago and and and he talked about $400,000. he did not back, back against it aisle tell you what he said exactly verbatim. i can't tell you its value but i won't tell you what the short is. >> well, a lot of people say that. you know, it's really hard to tell. it's really hard to tell what technicals are, even what

fundamentals are. some people go with the amount of energy that it takes to mine a bit coin, for instance. but people are really looking that record level, the 64, 870. and beyond that, i've seen people say once you get to that record, we're looking at 100,000 that's how volatile it is that you can basically take another $35,000 above it to go get the next two levels. and then below that we're watching the round number around 60,000. very there anything else contributing to the bullish move that we're having right now? are a lot of those technicals behind it? >> the technicals are definitely helping. another thing that is helping there have been whales -- big players the bit coin says that have been buying at the end of july. a lot of people are talking about that too because they tend to be smart with their moves. and they're looking at this. also it's a really good time seasonally for bit coin.

it tends to go up a lot in the fourth quarter that's giving people hope as well. manus: hope lives all the time. joanna, thank you so much. joanna ossinger for the latest on bit coin. i'm sure we'll see a lot of you, joanna. bit coin ain't going away. a storm brewing in the uk. supply bottle bottlenecks. unemployment. and the inflation data in just a few minutes' time. this is bloomberg.

>> we have to evolve our practices tha has us to live with covid. ♪ dani: welcome back to "bloomberg daybreak europe." i'm dain burger and manus cranny. some things to look out for

today the u.n. are convening a net zero future event. members of the net zero owner alliance, they will be there. they're going to report on and discuss the ambitious science-based targets that they want to achieve by 2025. the feds publicishing their beige book as consumer spending decelerates and inflation continues to rise, manus. manus: yep. third quarter earnings are going to hit the tape. the company is one of the few to enjoy yup ward revisions to their earnings from the analyst numbers last month. but apparently it's spacex that will make elon musk a trillionaire. the inflation data, we've flagged it. the bank of england they've already said that inflation is set to exceed 4% this year. that is more than double the target. lizy, toe's inflation sprint

absolutely important because bailey has pulled the trigger on rate cut speculation and the strip has absolutely ripped away, ant it? >> yes, exactly. this is last reading before the november meeting as you say that's when markets are expecting the bank of england to raise rates. economists expect this growth reading to read 3.2% the same as the august reading but it's above the bank of england's 2% target. it's likely to be driven by supply chain bottleneck which is has been much more stubborn butt if inflation undershoots that the question is if the markets have gone too far t. question will be is it enough to persuade the banks to go in november? or will the committee wait for ton employment print for october which will get just before the december decision. but in any way the bottom line is, if this inflation fight continues, it's making -- it's going to make the far they've is

transitory but shakier and shakier. but for british households that's going weigh on homes at a time when the government is raising taxes and cutting benefits. manus: lizy, thank you very much. lizy burden with the very latest on the expectation with the inflation numbers. we're just over an hour away from the cash opening. futures will open in just a few minutes and you're going to see the f.m.i. numbers. it took coffee drinking and feeding the dog, what was it -- the pandemic pooch. but you're looking at sales growth of forecast. they've raised their guidance to 6% to 7% so this is a furious reappraise al of where we go the dog won't chi -- die and i really love coffee. dani: i like how you put it the

goldy lock locks environment. everybody's using their fancy nespresso machine but people are still going out to restaurant. restaurant sales helping a lot. this is the best video that we have in the file are these dogs. i love them all. i want to adopt every single one of them. manus: i know, they don't let me get a dog. they don't let me tweet that anymore. one day i'll get a dog. i'm going to call it barney and i'm going to definitely get a top end dog food from -- enough of the pooches. the nerves spresso machines like $200. highest amsl.

it really is this chip crunch. some of the supply issue say they're seeing some of the material shortages. and that means they're coming in below estimate. manus: yeah, it's in there which is the head materials issue. so i don't think that's the shock. they said they had late starts in some of the machines. they make the machine that make the chips that get your toothbrush in your hands the early shipments meant that we actually -- we're actually going to see some receive now defer into 2022. this is global story, isn't it? >> yeah, it really is. >> i was surprised, their earnings were reached because of a chip shortage. even cigarette makers are feeling the crunch from the supply chain. manus: i asked would you buy a chip factory. we've got the conversations. we've got the c.e.o. from rush

and necessarily. -- nesle. those come after 8:00 a.m. time. dani: you're up. "european open" up next. this is is bloomberg.

♪ >> good morning. welcome to bloomberg markets europe. i'm ana edwards. our marketing editor joins us to take us through all of the market action this hour. the cash trade is less than an hour away. uk inflation data is eminent. british industries from food to trucking have warned of double digit inflation repression. bitcoin nears an and all-tim