>> good morning this is bloomberg daybreak: europe these are the stories that set your agenda. asian stocks fall as investors reduce risk ahead of the fed

rate decision, the s&p 500 is just 5% off its all-time high. earnings season is in full swing as alphabet posts a revenue beat while at microsoft shares fall. in lvmh loses its shine on disappointing u.s. sales. a european banks and focus as allison rose resigns following a political controversy, deutsche bank reports after the german lender reports it will resume buybacks this year. we will be speaking to the cfo later this hour. good morning, welcome to wednesday, it is fed day. 25 basis points of hikes, pretty much baked in so the attention now turns to the path ahead. off the back of strong u.s. consumer confidence data that yield curve is now pricing a 50-50 chance of another hike after today's meeting which begs the question is this the sort of pricing jay powell wants to see?

-- will be the answer, asia markets pretty quiet this morning but if you look at the two day u.s. chart u.s. stocks were in the green yesterday for a third straight session. the s&p 500 closing at its highest since april 2022 with big tech leading equity gains. if you follow fibonacci analysis you will know the s&p 500 has crossed the critical threshold since 1929 has had a perfect track record, that will up hopes that the fed is done with hiking after today. more earnings this week will be a key test. speaking of which coming up today we have 46 companies reporting on the s&p 500, another 46 on the stoxx 600 and we can bring you the latest breaking earnings right now. we have second-quarter results for deutsche bank, germany's biggest bank. we already had confirmation yesterday that deutsche bank will initiate a share buyback of up to 450 million euros. that is the size the ceo was

hinting at last month, management warned of a 20% drop in fixed income trading for the period and we have a deep on that frontutsche bank's fixed income sales and trading revenue is 2.1 billion euros. the estimate was for 1.97 billion euros. you are also synced wishes capital ratio at 13.8%, the estimate was for 13.4%. this is the main measure of liquidity, deutsche bank really benefiting from higher rate supporting revenue growth as corporate and private revenue growth in the second quarter. they have been on a hiring spree to win market share but the shares have barely moved year to date so underperforming the stoxx 600 banks index which is up 16%. we will have more on those results later in the program, we will bring you an interview with the cfo. we also have results for unicredit out of milan, investors watching that income and how much the bank is paying

for deposits. you are seeing full year adjusted net profit above 7.2 5 billion euros, net income for the second quarter coming in at 2.3 one billion euros beating estimates and second-quarter revenue at 5.9 7 billion euros. again, beating estimates. unicredit singh for your investor returns of at least 6.5 billion euros. the bank really focused on returning capital to shareholders as it balances risk exposure to russia, central and eastern europe and also the italian government bond and elsewhere rate hikes are limited deposit outflows have supported profitability. we have suntan dare -- santander beating estimates of 2.5 8 billion euros. that's interesting spain's

biggest bank also beat with net loss loan provision coming in lower than forecast. santander says it's on track to meet its 2023 target. don't miss our interview with the cfo josé garcia kent terre, we will bring you that just after 7 a.m. u.k. time. the bank news this morning here in the u.k., ceo allison rose is stepping down after the british lender closed -- bank account. she resigned after admitting leaking information about the politician turned pundit in a leak related to his status as a customer of the bank. this included some of u.k.'s wealthiest people including members of the royal family. now pacwest bancorp is being taught by a smaller rival bank of california as part of a rescue deal. shares of both bank surge in after hours trade on the news, others will be investing $4 million to a pain about 20% of

the combined company and warrants to buy more shares. the combined bank will have about $36 billion of assets, that is less than what pac west alone had at the end of march. we also have more news out of nissan and renault, the automakers have signed a deal rebalancing their alliance with nissan to invest up to 600 million euros in the ev unit. they have been targeting an ipo as soon as the fourth quarter. time now for our roundtable as always with bloomberg's valerie tytel. let's get back to earnings because it was a big night for tech, alphabet leading with a revenue beat as google fence off ai competition. meanwhile microsoft fell on tepid sales weighed down by slowing demand for cloud services and snap tumbled after it forecast a wider third-quarter loss than expected. we get meta-earnings later at

the first and say i fever broke out, what are you expecting? >> ai fever, let's see if that fever is still running hot. to me it is all about keeping this bull market going. we are so close to those all-time records in the s&p. just 5% away, the nasdaq is just 7% away and the dow jones is within 4% of all-time highs. a lot continuation of this equity optimism, this equity will market depends on how tech shares and tech earnings go this week. met up being one of the big beneficiaries of the ai tech boom, whatever you want to call it of the magnificent seven. they are the second-highest returning year to date, over 150 percent. i think a lot of continuation of this positivity depends on these tech earnings coming this week, google setting a high bar with

those shares rallying some 7% after the close let's see if meta can bring that as well. >> let's stay in the u.s., it might not feel like a normal fed week because the fed is being overshadowed by the ecb and it is the busiest week in the earnings calendar. we know the fed is going to hike rates to the highest level in 22 years but we are going to be tuned into every single word and eyebrow raise in the press conference later. what are you listening out for in terms of clues from jay powell? >> this is all about nuance, his demeanor, how he answers questions in the una. we don't get any updated forecast from the fed at this meeting there is no dot plot no updated inflation or growth forecast, it's all going to be about nuance. we know he will go for the 25 basis point hike today, but is there going to be any hint that that soft cpi print we got last week changes his conviction on this u.s. economy needing a

further hike come fall? and does he change his language, his characterization of the labor market he has described this labor market as robust for nearly a year. it does he start to change that language, maybe start to concede the labor market has moderated, all of us will be hinging on his words and the q&a on how he answers those questions. >> we get more jobs and inflation data before the next decision which is ages away so by then this press conference might not seem so significance. >> that's right we get to see and to and if he's before they meet again he is probably not likely going to want to cement a scape or a hike in the cards but leave all options on the table. >> we will have to play data dependent go again. let's come back to earnings here in europe because we had our vma's reporting after the close yesterday pointing to weakness in the u.s. that outweighed the rebound in china, meaning that

revenue fell 1% in the u.s.. the only reason -- region that showed a drop. i felt that luxury consumers were immune to inflation what happened to revenge shopping? >> seems a global mood is less about revenge shopping and more about normalization. this is just the latest slow down or sign of the slowdown of the high-end u.s. consumer after a disappointing burberry results, other results of late, but remember lvmh is a good sign for how chinese demand is holding up and they are reporting that it's holding up pretty well. lvmh gets over a quarter of its sales from asia x japan and really the pace of the chinese recovery in the future growth prospects of china has become a major talking point within the luxury space. i was happy to see that within the lvmh results we did not necessarily see a decline in entry-level goods in china.

youth unemployment in china is standing near record highs, that is one revenue stream in particular which could be a source of concern for these luxury names. >> let's go through some of the other developments we are watching, at 3:30 p.m. london time will get the energy information administration eias crude oil inventory report. at 7:30 p.m. london time and then will get the fed rate decision followed by jay powell remarks later and then finally at 9 p.m. we will get metas second-quarter earnings all of which you can follow blow-by-blow by typing tliv on your terminal. thanks to valerie for joining me for the roundtable this morning you can get a round up of the stories you need to get your day going on today's edition of daybreak. they lead on the fed decision and it is all about earnings across tech, luxury and banks. terminal subscribers can get all of the stories and more by going

to d.a. why pico. coming up australian inflation slows more than expected what that means for the reserve bank at next week's policy meetings, we will be discussing shortly. plus don't miss our conversation with the cfo of norway's aqua nor, that will be at 6:40 a.m. u.k. time. stay with us, this is bloomberg. ♪

>> welcome back to bloomberg daybreak: europe, australia's inflation rates have slowed more than expected coming in at 5.4% in the year two tuned. the reading bolsters the case for the reserve bank to pause again at next week's policy meeting. joining me now to discuss is bloomberg's mliv strategist mark cranfield, good morning. >> could. >> what is the read across from this aussie inflation print for the 210 markets? >> it is a similar picture to what we've been seeing with some of the other central banks, we are getting a clear idea that inflation is peaking in australia much the same as it is in the united states and other parts of the world. already next week's reserve bank meeting was expected to be a close call, there are a few hawks left on the rba committee.

but there is also a personnel change going on as listeners will know, there is a new governor coming in for the meeting afterwards. michelle bowman is coming in and she's going to change things. the rba was already going to be making a tough decision, traders are paring back to bets on the chance of a hike they are now 50-50 whether they will be one or not. certainly this inflation data which was low across the board is going to make the job very difficult to try to sell the idea to the rates traders that they have got more hikes up their sleeves. they may go for the idea of a pause to give them the option of than hiking again further down the road but it is also a tough sell for the market increasingly bond traders in australia. they see the higher inflation place and they want to pick out the best points in the bond market. it yields around 4% also pretty attractive in australia over the long-term and you can see there is a lot of target of buying from pension funds around that level.

as we go into the rba meeting there will be parallels with the fed eating, the market both fx traders in interest-rate traders, they think there is a long-term future here for rates on the way down. it is just a question of when it accelerates, we get a hold first and then a tumble in rates? or will the rba give a signal that it is ready to start pushing rates down before the end of the year. it will be a close call decision already people are thinking that the peak for rates is already in australia now it is just a question of when will the central bank be ready to start lowering rates on the others. >> power fx traders going to be setting up for the fed meeting later? >> there is a lot of dollar shorts out there, if you look at the data there is weekly data composed by the cftc every week and there has been a big shift in the way that they leverage people. they are getting more short of the dollar across the board, the one that stands out that is not

the case is the japanese yen. people are still bearish on the yen but generally they have gone dovish on the u.s. dollar whether it is against the euro, the pound or the swiss franc or the canadian dollar. in most of the g10 currencies traders are leaning heavily for more weakness in the u.s. dollar but this week has been a bit of a problem for them because the dollar has been backing up a little bit, so the fed is signaling on where they go is point to be important for the fx market because if the fed manages to sound very hawkish that is going to be a shock foreign-exchange traders. and you could see a pop higher for the u.s. dollar because positioning still the wrong way around. we saw the euro scream above 112 it is already down to hundred pips since then. but there's still a lot of long positions left in the euro so they will be watching closely as will people with the pound as well and the other major currencies. there could be plenty of volatility in the foreign exchange market if the fed is

convincing enough to say more hikes are coming not just in september but leaving the door open for the fourth quarter as well so foreign-exchange traders are very much on edge as to what happens tonight. >> arguably and unusually -- the ecb more important in the fed this week. >> definitely and especially when you look at the context with some of the other people nearby. at the swiss national bank don't meet until september. but the euro against the swiss franc is one of the most heavily traded crosses in the swiss franc traders will be watching very closely to see whether the ecb buys into the idea that the economy is really coming to a grinding halt. we have seen german data on the weak side, the imf is giving a warning that germany will be the first country to go into contraction. it may be the only country among the major ones that go this year. that means that the ecb is under pressure to give some dovish guidance going forward.

the swiss national bank in contrast is not. they are still sticking to the line that they have got more hikes to go, if you look at the swiss site deposits there is no sign that the swiss national bank is concerned about the strength of the swissie. that means this downward path you are seeing for the euro could extend quite a bit further if the ecb gives into the idea that the data is too weak for them to be going for a long rate hike. probably the ecb will still continue to hike this time but they could will close the door on any further hikes and in terms of the euro against the swiss franc that could be more downside for us already. it has been quite a steep fall this year but we are not near the two-year lows so definitely more chance for the swiss franc this week. >> we also have a bank of japan decision our reporters have somewhat ruin the surprise of their scoop on yield curve control. what will traders be watching out for? >> we are going into the meeting

it seems to have all been leaked in advance. you think it is going to be a nonevent but we do have a press conference and that is where the bank of japan has been quite lively in the past. we may not get much from the statement but during the press conference with a bank of japan governor sometimes is where you get some ideas about what they are thinking for the path ahead. if they are considering to do something with yield curve, maybe at the october meeting or maybe sometime later on beginning of next year, it could well be during the question and answers where he starts to give at least some parameters of what the bank of japan needs to see for them to change the yield curve control. whether it is a wider band on the 10 year were shifting to the five-year, but certainly the statement itself at the moment it looks as if it is going to be a bit of a nonevent. the press conference is going to be lively. >> well about the press conference is all about the path ahead for the fed, ecb and the boj.

things for that round up from bloomberg's mliv strategist mark cranfield, plenty more ahead. this is bloomberg. ♪

>> welcome back to bloomberg daybreak: europe, -- has reported net income for the second quarter beating estimates for 2.5 8 billion euros. net interest income at spain's biggest bank also beat with net loss -- net loan loss provision coming in lower than forecast. it does state is on track to meet its 2023 target. we will have an interview with the cfo josé garcia cutera just after 7 a.m. u.k. time. stay with us for that. we also have ceo allison rose stepping down after a rally over the way they closed nigel's bank

account, she admitted leaking information about the politician turned pundit. the league related to for our's status as a customer of coutts bank which caters to some of the uk's wealthiest people including members of the royal family. also this hour we have the latest earnings from unicredit, it lifted is for your targets for a second straight quarter after surging income from lending boosted profit. the milan-based lender 2023 adjusted profit of at least 7.25 billion euros of from an earlier forecast of more than 6.5 billion euros. and investor returns at equal to or higher than 6.5 billion euros. that is unicredit. we also have deutsche bank results this morning for the second quarter, this is germany's biggest bank. we had confirmation yesterday that it will initiate share buybacks up to 450 million euros, so matching the size of

the ceo hinted at last month. management also warned of a possible 20% drop in fixed income trading for the period what we have learned this morning as there has been a beat on fixed income sales and trading revenue. that is 2.1 billion revenues, the estimate was for 1.97. we are going to get more on those results later in the program. we will have an interview with the cfo, that is next. stay with us for the conversation with bloomberg's oliver crook, this is bloomberg.

lizzy: good morning, this is "bloomberg daybreak: europe." i'm lizzy burden in london. asian stocks fall as investors reduce risk ahead of the fed rate decision. the s&p 500 is 5% off the

all-time high. earnings season is in full swing as alpha new poster revenue beat while microsoft shares cloud sales. lvmh loses revenue from the u.s. european banks in focus as allison rose resigns following a political controversy. deutsche bank posts better than expected fixed sales and trading revenue for the second quarter. our interview with the ceo is coming up, next. welcome to fed day. the 25 basis point hike we are expecting is pretty much nailed on. all is on the press conference tonight and the path for rates. the yield curve is pricing another chance of a 50-50 hike after today's meeting, which raises the question, is this the pricing jay powell wants to see? if you look at the two day chart

for u.s. stocks, they were in the green yesterday for a third straight session. you also have asian stocks looking flat at the moment. the s&p 500 closing at its highest since april, 2022. big tech leading equity gains. a lot of earnings this morning, we had deutsche bank for the second quarter. management warned of the 20% drop in fixed-income trading, and there is a beat there. we can go to an interview with the deutsche bank ceo. >> it has been a very interesting mixed environment this year so far. the one we have been trading through quite well as an organization. we are delivering revenue growth 11% on the top line. our expense agenda is helping us with operating leverage. we had three positive ratings actions and we are delivering on

capital return, having announced a $450 million buyback. we think the profile we are putting together is strong. >> getting into the specific silos of the business trading, that would be tough this quarter. it has come in better than you guided towards. you said there would be a bounce back, what does that mean and are you seeing it already? >> we came in down 10% off a really good quarter last year. we think a decent performance in this environment, volatility has declined versus last year. last year the war was in the markets and the uncertainty about the energy path. we have gotten to a place where the market sees the forward on interest rates, and we do see the potential for a pickup as we get into the downside of the cycle. as investors start to position

for the timing and the extent of policy rate declines, i think that is early yet, but it is something we believe lies ahead. >> in terms of the revenue outlook, are you confident guiding higher or the upper end of the range? >> in our range which we said 28 to 29 billion, we think we are solidly in the middle and upper end of that range, which is encouraging. a lot of that story this year in the banking industry has been a rates story, not just the rates rises but questions about deposit rate pass-through for the banks. what is interesting, and for us given our business profile, we see as that rates story abates somewhat, it is normalizing, and it will normalize at a healthy level.

there is a story developing in terms of the noninterest revenue income sources we have. financial markets for the past 4-5 quarters have been more difficult but we see that coming back, and we think we are well-positioned to take advantage of that. >> things have gotten better for trading than we anticipated. going forward, where does the growth come from? >> there are parts of the investment world that have been difficult. i take wealth management as an example, where investors have been reticent to your point earlier. in the uncertainties that lie ahead, whether the direction of the economy or geopolitical events we are living through, as those clear up and the direction of travel becomes more clear, you expect the individual wealth investor to reengage. the other area, corporate

finance is notably slow over the last four quarters, we expect that to pick up. >> the market has priced any five basis points, do you agree? >> we agree that both the ecb and fed will move this week 25 basis points. a question of what the step after that, the ecb may have one more move to make, and the fed may stay pat. to us the question is not what is the terminal rate but how long will it persist for? how long will it take to get core inflation out of the system? >> and at what cost is the other one. the ecb said corporate loan demand is off a cliff. manufacturing is in recession. you are the lender to germany inc., what do you see in the economy? >> the case for a soft landing, and i have to confess we were

more pessimistic in our outlook at the beginning of the year, but the case for a soft landing seems to be improving. that entails that there is some slowdown in the economy, and the mechanism for the impact of policy rates through to the economy is bank lending. while you have seen a decline in europe and the u.s., and in our books so loans are down in certain businesses, i'm not sure it is a dramatic or long-lasting impact. i think there is an adjustment to this rate environment, then we will find a level and grow from that level. manus: that was the deutsche bank cfo. for more on germany's largest lender, we are joined by oliver crook out of that interview. what were your key takeaways?

>> this is overall a positive story for deutsche bank. we saw the business mix evolved. asset-management was in-line, private banking in line. the investment bank incorporate bank both beat. it has been challenging across the industry but goldman sachs had an estimate down 18%. it came in down 10%, so a positive, not a status anticipated. you also saw within the earning structure the evolution of the business with a higher rate regime, you have the investment bank revenue that was lower than the private bank. that has to do with the follow-through of interest rate. you see that shift going forward. he says the outlook is clearing and there was a lot of negativity going into the quarter, and that is abating. i asked about the buyback outlook.

the question is going forward, and he would not be nailed down on further buybacks but the market wants to know. manus: how'd -- lizzy: how do you play that into the comments yesterday that germany is stuck in a recession? >> what is interesting is basically with every gdp revision we get out of germany, it goes in and out of recession. a couple basis points above or below zero does not matter. it has to do with rates. sell the ecb say credit loan demand from businesses went off of a cliff. he sees one more rate hike from the ecb, maybe a second from the fed come of potentially done. but he said the weakness in the economy is not broad-based but there are is weakness in pockets, but it is not broad-based. he is comfortable with credit conditions and believes in the

soft landing narrative we have been hearing. i asked what clients are worried about. it started with inflation then recession, he says now, geopolitics. manus: thank you for joining us -- lizzy: thank you for joining us. alison rose stepping down of the u.k. after a row over the way she closed nigel faraj's account. the leak related to his status as a customer of coutts bank which caters to the wealthiest people including members of the royal family. from banks back to earnings, we do have earnings, this is across the french food processing company, the first half results. it is a barometer for inflation. unilever said cooling inflation was a boost to its sales.

second quarter sales beat estimates, up 6.4%. the estimate was 5.6%. faster than expected revenue growth. you can see the water business grew the fastest of its divisions, led by evian. they expect full year revenue growth in the upper end of its range of 4%-6% as volumes improve through the year. analysts expecting 9% growth at the top of the range. we also have tech earnings this week. alphabet, microsoft posting earnings. joining me to discuss those results is olivia salon. what stood out to you from the earnings? >> there had been so much concern that the advertising

business that google would be damaged by generative ai since microsoft invested in openai and unleash this huge tech race. the search unit and youtube showed resilient revenue. lizzy: we saw microsoft falling on tepid sales, how do you balance that? >> microsoft beat analysts projections but so much hype about the ai capabilities that it fell flat. there was concern in the cloud sales and cloud revenue. the growth seemed to be slowing, which you would expect to be bullied by the push for ai but the company was keen to clarify it just started to charge for its ai capabilities in its core products. they are saying, be patient and the revenues will come.

lizzy: thank you. coming up, we speak to the cfo of ecuador after they reported -- cfo of equinor after they reported a beat on earnings. this is bloomberg. ♪

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"bloomberg daybreak: europe." oil and gas giant, equinor, reported income for the second quarter that more than half missed estimates. they are one of the first major energy producers following a quarter the analysts expect to be weaker across the board. to discuss the results, joining me now is torgrim reitan, exec vp / cfo, equinor. the demand for natural gas has been muted. there have been estimates prices could vary from 100 euros if it is cold to 15 euros if it is mild. what is your view on natural gas for the rest of the year, and how has the demand for lng going to play in? torgrim: good morning and thank you for having me. this quarter is a strong set of numbers. with lower prices than last year

because of the energy crisis in 2022. they are a strong set of numbers. natural gas prices is what drives this. currently we see softer prices but it is a vulnerable situation. it is coming on the back of a record winter in high storage levels. small changes can really change things. changes in lng and demand picking up from china and asia in general. we need to be prepared. in the quarter, clearly we are delivering good progress. the product is producing at record levels. we made an investment in brazil.

the company in brazil is just about to start. the largest offshore project outside of the u.k. we have a capital distribution program, $17 billion on the back of strong research last year. i'm more than happy to share that with shareholders. lizzy: optimistic against a difficult backdrop. there are major uncertainties for this upcoming heating season in europe. what supply disruptions keep you awake at night? torgrim: first of all, what we most see is a stark reminder of climate change, it is changing the weather and is on our

doorstep. this is a call for action. we need to do as much as we can to drive energy transition with renewables, low carbon solutions, and other energies need to be produced with as low of a carbon footprint as possible. what keeps me up at night is operation issues in the more natural gas chains, lng. it is extremely important that we deliver as much as he as we can in a reliable manner to europe. particularly where prices are high. we will do the our best to assist europe. lizzy: speaking of natural gas facilities, you experienced disruptions at two of them. what is causing bottlenecks, and you can -- can you maintain

supply in the near term? torgrim: we can. the disruptions was at a gas facility operated by another company but impacting gas production. those are fixed. we have the majority of the turnaround behind us. everything is now working smooth , and we are ready to produce with more production out of norway. lizzy: in the u.k. we are on tenterhooks for the oil and gas field. you missed the target to make the commitment in the first half. what is the problem, the

windfall tax on north sea producers? torgrim: first of all, rosebank is an important project for us on the u.k.. it will provide energy security which is very much needed, and it will create revenue and jobs for the u.k. around 30 billion pounds through the life of the field, and 1600 jobs at peak. it will be important for the oil industry in the u.k. things are moving according to plan. decisions are made. we are awaiting some final approval from the regulator. we are working closely with them, so this is moving forward. we are looking forward to really getting started. lizzy: what is the one thing they can give you to get this over the line? torgrim: i think everything is

there, so we just need the final approval from the regulator. lizzy: equinor eo, -- equinor, cfo, torgrim reitan. coming up, lvmh with weaker sales as china rebounds. this is bloomberg. ♪

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"bloomberg daybreak: europe." europe's most valuable company reported after the close yesterday. lvmh said u.s. sales declined as the sluggish economy deterred some shoppers from buying the high-end clothes and handbags.

that offset sales rebound in china. it is a privilege to have you with us this morning. can you give us a brief overview of the key financials. >> we saw organic sales growth at 17%, the market expected 15%, so that was a beat and aligned to the q1 number. there is no slowdown on the top line. then we saw a little pickup and gross margin but operating margin was 50 bips lower because they are spending more on advertising and promotion. what we saw overall was strength in the china market. 40% growth on a two year basis, we cannot look at last year because of the closures. then the u.s. down, -1, almost

flat versus a year ago. lizzy: interesting barometer of the china economic recovery. despite the mixed picture, market jitters were the result after the release, what were the main concerns? >> the u.s. in particular. when we dug deeper into management, that -1% from the u.s., how quick is this slowdown? what we learned was the aspirational shopper, a bit of tiffany being hampered but overall at the high-end it continues to be robust growth and accelerating in the u.s.. japan is very strong, the chinese, if we compare to last year, 85% of the chinese cluster purchasing on the mainland, now it is 17%.

a lot of that is moving to hong kong and macau, and some japanese numbers were very strong. lizzy: let's talk about the read across the other luxury brands reporting this week. what is the guidance and expectation currently? >> if we look at these companies, it is thinking about where is the exposure on the u.s. market? in particular if we think about lvmh, 25% of the sales is the u.s. market, and that is a line to where the luxury goods break, 25% of the market is in the u.s. , so it is looking at these companies and how much exposure they have but also if there are in a brands that are particularly vulnerable rebuilding strategy, aspirational brands will be watching out in the weeks ahead.

we will be looking individually at different companies. overall we are looking at china as a big win into 2024. more travel. 70% purchased on the mainland. that should continue to pick up. lvmh, the market is looking at 13%, that may be a bit weak. lizzy: thank you. highlighting luxury. we have a lot of interviews coming up later on bloomberg tv. we have the santander ceo in about 20 minutes.

we will also speak to the lloyds banking group ceo, charlie nunn. and we will be speaking to the ceo of carmaker, solantis. do not miss that exclusive interview 10:15 u.k. time. up next, "markets today" with anna edwards and mark cudmore. this is bloomberg. ♪

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anna: this is "bloomberg markets: today." i am anna edwards in london. mark cudmore joins us from singapore to take us through the market action this hour. here are your top headlines. european earnings are in focus.