>> good morning. i am tom mackenzie in london. these are the stories that set your agenda.

israel intensifies airstrikes and ground assaults on gaza. -- joss and lebanon one year on from those deadly attacks by hamas. asian stocks rise and bond traders buckle up after friday's hot u.s. jobs report. i will look ahead to data on inflation. less than a month until the u.s. election, the democrats kicked off a media blitz while donald trump returns to the site of july's assassination attempt, supported by elon musk. we will have the latest. >> a turnaround in cement -- in sentiment that left european and u.s. stocks in positive territory on friday but for the week, you are still down in both

the u.s. and europe. european futures pointed to gains of around .2%. .3% as things stand. the jobs data was stronger. unemployment fell to 4.1%. wages were up. the struck just -- strongest growth in jobs. a selloff in treasuries and we continue to monitor how markets are readjusting as they start to reduce their bets on a future cut from this federal reserve, still expected. 80% chance, down from 100% in the month of november. 50 basis points has been phased out. cancel .3%. goldman sachs upgrading their view on chinese equities. ftse 100 features getting a live from upside in terms of the pricing on copper and iron or and that links to the china story. s&p futures currently a little lower by point 1% -- .1%. let's have a look at the asian markets with the goldman cool

contrasting with what you're getting from the likes of nomura. evaluations are starting to look a little bit rich in some parts of these markets in china. we need to see the policy implementation. glezman saying you could see further upside. potentially 20% on chinese stocks so that is playing into the mix as is the strong jobs data in the u.s. in terms of the optimism within the asian session. the benchmark up 1%. the hong kong listed company -- the chinese enterprises index -- chinese companies see gains of closer to percent. in the nikkei having a solid session, adding 867 points. let's look cross-asset then. we talked about the yield move. dramatic as it was in terms of the front end last week, yields up 36 basis points on the two-year. closing in on that 4% level as markets once again rethink the next steps for the fed.

euro-dollar at 109. yes, the ecb is very likely to cut at its meeting this month. currently down .2% and we watch the tensions in the middle east and bitcoin at 440 five, up around 1.3%. let's get to the geopolitics, the middle east, and the tensions there. one year on from the dramatic and disastrous events on october 7. israel's military launching an aerial and ground offensive into gaza over the weekend. thought to be the largest in months as the country marks that one year since those deadly attacks. let's bring in our anchor for the details. joining us from dubai one year on since october 7 and the horror that we saw being unleashed in israel. is the conflict that has now spread any closer to ending?

>> a sober and traumatic day for israel if you are going back to almost this time, 360 five days ago, and one of the single deadliest days in israel's history, 1200 people were killed and 250 were then held as hostages, of which about 100 of them are still in captivity and that was one year ago. it marked a significant turning point for the region and for the events that unfolded since then with israel going on the offensive and launching its largest military campaign against those hamas militants in the gaza strip. he fast-forward to today, the palestinian health ministry put the total number of deaths at more than 40,000. you have more than 90% of the population within the gossett enclave displaced and no sign of a cease-fire even though as i mentioned, around 100 of those hostages are still held in

captivity but it is not just a front in gossett that is being waged. it is now being transformed into a multi-front conflicts. we have been talking about the second time there has been a direct attack from iran into israel this year. the first one took place in april. israel responded. but of course just one week ago, iran fired 200 ballistic missiles towards israel and it is expected to respond in some shape or form it in the neck couple of days and how that response is going to look like again will shape what their regional situation is going to look like from here and i have not even mentioned the third front that has opened up and that is the conflict that is intensifying in lebanon now with israel now starting a ground incursion into the southern part of the country, the border that started one week ago with ongoing airstrikes continuing not just around beirut but other parts of the country with the stated aim of destroying

hezbollah military infrastructure so from israel's perspective, it is very clear that the reason this conflict has taken on a multidimensional format is because they are going after their opponents. and specifically, iran's axis of resistance, represented by hezbollah and hamas militants and rebels around yemen, too. shery: you point to what has been described as the inevitable response from israel to that you run you and attack and you touch on the developments on the ground in lebanon. do we have any clarity on what the objectives are for israel in lebanon at this point schumer >> israel's stated objectives and the war objective they introduced a couple of weeks back was to restore security to the north so the 60,000 odd residents who live in northern israel could return safely to their homes without being exposed to the risk of rockets being fired at them by hezbollah

so on the back of that, the conflict within lebanon has been intensifying. airstrikes around beirut, central beirut, and even in the eastern valley close to the syrian border, have massively intensified over the weekend. almost 30 airstrikes alone on saturday being reported. stronger even than the airstrike that took out nasrallah the prior week. the ground incursion continues although not a lot of detail on what exactly is happening on the border. there are reports that around a dozen israeli soldiers have been killed although the idf state they have managed to dismantle around 2000 hezbollah targets. while this is all going on, the humanitarian situation in lebanon is deteriorating rapidly. the lebanese prime minister talked about 1.2 million people being displaced. the death toll has risen to more than 2000. schools are on hold. 60% of children who would be going back to school are also

displaced. aid has started coming in. the u.n. supplying their first shipment of humanitarian aid coming through this weekend and still political stalemate in the country with no sign of a cease-fire. parks ok. thank you very much indeed on the latest as we continue to monitor the tensions in the middle east. meanwhile, the ripple across the oil markets as well with oil opening the week slightly lower. just checking brent for you which is trading at 79, down .3% and this as traders way israel's attentional retaliation, something javon i was talking about, against iran with joe biden discouraging a strike on tehran's crude fields. joining me now for the details in terms of how the market is reacting to this, stephen stapczynski. what scenarios are traders watching for? >> i think right now, the oil market is just watching for the retaliation. when the retaliation comes, we

should expect an immediate increase in oil prices and then once the dust settles, what has been affected? think we will be testing the $80 branch level. if there is any sort of hit on any of the oil infrastructure in iran, which suggests we have not fully priced in that risk at the moment, you are -- compared to $70 brent, we are up about .1% but it coat -- we are up about 10%. the level, if we get 2 million barrels a day of iranian crude off the market and opec-plus does not step in to fill that void, you are seeing brent continuing up to the mid-$90 level according to goldman. there is an expectation as i hinted that opec-plus could come in and add more to the market but if they do not, you will see oil prices continuing to rise

and stay steady at the $90 level according to analyst reports that have come out. there is also a view that may be nothing happens at all and iran -- israel does not attack any of the iranian oil infrastructure. it is not in their best interest if oil prices rise. they import oil. if there is no immediate attack on the infrastructure, then i think you will quickly see oil prices deflate back down to the $70 brent level. the reason being that the fundamentals are bearish in the market. besides this more risk, there is an oversupply. they are trolling quite strong despite the price level and opec-plus is adding more barrels to the market at the end of the year. on top of that, u.s. demand is not as resilient as some thought. the u.s. economy not as strong as some were expecting and china has also not been as strong as what traders were expecting this time of year. all of that together, those are the scenarios the traders are watching out for. >> stephen stapczynski, thank

you very much indeed, breaking down the competing tensions across oil markets. we appreciate the update. let's stay on what is unfolding because traders have been -- on the scale of rate cuts by the fed for the remainder of this year. austan goolsbee lauded a strong september start report but warned it is just one month's data. >> the whole report, superb report. you really could not ask realistically for a better report. i still think as a central bank, you don't want to react too much to one month's report. >> let's bring in our guest for the market reaction. it was a blowout, valerie. >> what a day for the markets on that friday afternoon session but if you review how big the move in two-year yields was last week, it was a monster. 36 basis points higher and it marks one of the biggest weekly

moves since 2008. those 50 basis point cut hopes totally erased in the market and i urge you to take a look at the curve. we are now three basis points away from re-inverting but what does this narrative about a no landing scenario mean for global markets? metz flipped the board and look at my next chart because i want to remind everybody that if the fed eases less, there is less room for global central banks to ease. we did hear from an ecb member over the weekend. they are still talking about this october cut. we have a lot of highly indebted corporate's and highly indebted governments out there whose yields trade at a spread to the u.s. they have the budget at the end of the year. we have france whose budget is only just this thursday. if treasuries don't -- if they have less room to rally, these highly indebted governments, there is a bit more pressure

when they come to release their budgets later this month. shery: a reminder of the challenges as we count down to the budget and maybe what the read across is going to be. onto the corporate space, market break down there. onto the corporate space, some lines crossing just a few minutes ago, 10 minutes ago, and this is coming through from the german newspaper in conversation it seems with the ceo of commerce bank. commenting in terms of this potential takeover -- potential takeover of commerce bank by unicredit. we know they built up the stake in the german lender, saying that the unicredit merger would not advance the banking union and the merger would lower commerce bank's credit rating, saying that she had a good dialogue with the ceo of unicredit so watch that stock of course at the open later today. you can get a roundup of the

stories you need to know to get your day going. terminal subscribers can go to dayb . at the top of the pages is the goldman call that chinese equities could go another 15 to 20% higher. talking of which, mainland chinese markets reopen tomorrow after the golden week holiday. we will take a closer look at what to expect and tie-in that goldman call. they are facing pushback from others. how far does this chinese rally have to go? the ceo and cofounder of unseen labs come a space tech company that uses satellites to track ships at sea. a fascinating story in terms of the market around space. stay with us for that conversation later in the show. this is bloomberg. ♪

shery: welcome back to bloomberg

daybreak: europe. plenty of focus on mainland chinese markets tomorrow when they return after the weeklong holiday. here is a look at hong kong markets and trading. for the upside and goldman sachs helping that sentiment by upgrading chinese stocks to overweight. that from tim and the team. let's bring in our chinese correspondent. the bullish call giving stocks another lift. is that expected to extend to the mainland reopen tomorrow? building up to this reopen in mainland china on tuesday. >> definitely a lot of momentum building up because the csi 300 came into this holiday seeing an 8.5% gain before the holiday and we are likely to see it return with a similar sized again if not more because there is a lot of catching up to do. hong kong markets were rallying even when mainland markets were closed. if you look at the futures trading in singapore, that was up some 15% while mainland

markets were closed and we have been hearing from brokerages, this huge demand for new account openings here in hong kong. many of those new clients are mainland chinese people flying to hong kong to open up new trading accounts and don't forget, travel data, preliminary data from the first day of the golden week showing record high passenger trips and the breaking tomorrow raising expectations of more fiscal stimulus to come so we are expecting a monster rally when markets reopen in mainland china. shery: a monster rally. -- tom: a monster rally. that is amazing. you mentioned it, a really powerful arm of the government of course. the acronym may seem dry for many of our viewers but this is an important it and see within the apparatus of the government of china and they are coming out with some details and there is a press briefing tomorrow where we may get more details in terms of the fiscal policies and support

for the economy, right? >> that's right. it is a top economic planner of the country and we are looking out for whether there will be more measures in terms of boosting consumption, boosting employment, shoring up confidence in the private sector, for instance, what we might not get is the scale of the fiscal boost is any sort of new bond issuance, that is going to likely be announced by the ministry of finance and those officials are not going to be present tomorrow so we think it is unlikely to get a number there but we will get some signs of which sectors of the economy are going to receive sense of it. by the way, they have the power to approve which projects get funding from those funds raised from special bonds so if they give a hand, we might -- we want to look out for whether they will announce a widening of the usage of those bonds funds to may be buyback unsold homes so these are things we want to look out for tomorrow. in terms of fiscal stimulus,

many economists are trekking to trillion you want be issued perhaps that will not be announced tomorrow. tom: on the trade front, the e.u. voting on these, has there been any response from beijing yet? >> we have the press briefing -- the foreign ministry press briefing at 3:00 p.m. hong kong time later today and that is what we want to look out for but i guess the next stage of this war, if you will, what is quite interesting with the volkswagen ceo, he proposed some chinese companies get some exemptions from these tariffs if they invest in opening up plants in europe and some companies like byd are looking at opening up plants in spain, hungary, turkey, for example. both the e.u. and china have agreed to keep negotiations going even after that vote has been completed so until november when these tariffs will kick in, there is a possibility that maybe they could take a different form or shape from

what has been announced so far which is up to 45% on certain companies so that is something to look out for and another thing as well, if these companies invest in europe, then how welcome will they be? the next phase will be scrutiny over whether there should be a minimum local content requirement for some of these factories that will be built in the e.u. as well. tom: as we look out for that press conference, may be a response in the next few hours from beijing to those tariffs. thank you. coming up, how financial influencers are fueling a retail boom in risky etf's, promising big returns. i will bring you that story and details. there has been quite a significant move into some of these products. this is bloomberg. ♪

tom: welcome back now.

today's bloomberg big tech looks at the growing number of amateur investors plunging into the complex world of derivatives powered etf's. derivatives powered etf's and amateur traders. huge payouts, with big-name stocks but industry professionals and regulators are urging caution. here to walk us through this phenomenon is charlie wells. what is driving interest in these etf's? charlie: it is almost tailor-made for you to or tiktok. what you basically get here are a lot of these influencers who will go on -- i did just say that. financial influencers. exactly. basically, you know, the pitch is invest in these etf's and they sell options. those generate cash and they come back to investors, you know, as dividends, so you get a lot of people talking about how

ie live off dividends. this is all great and we are seeing a lot of interest here so $50 billion into these derivatives enhanced etf's and then 160 four launches. a lot of interest but of yours, there is no free lunch and their serious risks here. tom: a lot of interest in the interest. people are giving up their jobs for this, charlie? what are the risks? charlie: these are really complicated products for you have rules from the sec that allowed some of these more complicated etf's to come to the market and so the concern is that, look, professional traders have a difficult time with some of these strategies. those volatility issues and you can get big payouts. with big upswings, you get the risk of downswing's and then there is this really interesting issue of total return here. you might be getting payouts but the issue is that, you know, with some of these share prices, when they go down, that can

leave you in the red as far as total return is concerned and that is complicated and does not always get translated into the tiktok videos. tom: is this a fad or long-term trend that will bake itself into our financial system? charlie: certainly a flavor of the week moment here but we also have to know, you know, the retail investor is here to day. we have seen that kind of investor class come to be a serious part of the financial world. of course, you know, etf's well our evolving and changing into a more active investment vehicle. certainly compared to 10 years ago where it was a very vanilla type of investment. but look, you know, what i know about covering retail investors is there is a lot of excitement on the way up but the minute there is a crisis, the minute something starts to go wrong, it is cricket. tom: they go that quite on reddit when there is a crash. thank indeed. fascinating story. i want to check you out on the

terminal. retail investors getting exposure to some of these more creative etf products. right. we are going to switch focus because coming up when you're on of course from the october the seventh attacks on israel by hamas, we have the latest from the region. that is coming up. this is bloomberg. ♪

tom: good morning, this is "bloomberg daybreak: europe." these are the stories that set your agenda. israel intensifies as price and got results on lebanon and gaza out when you run from the deadly october 7 attacks by hamas. from soft lending to lower lending, asian stocks rise and bond traders buckle up after freddie's hot u.s. jobs report. we look ahead to this week's data on inflation. less than one month until he was election, the democrats kick off a media blitz while donald trump returns to the side of july's assassination attempt supported by elon musk. let's check on these markets, under another solid day in the session in terms of asia. the reader crosses to their,

european futures pointing to gains of .3 or 4% after losses last week. u.s. and european markets closed for the week. lower even if there was green on the screen. jobs data coming through in terms of the unemployment rate. we do look ahead to inflation data on thursday, and to focus their as market started to reduce their bets on the november cut. they have gone from 100% to about 90%. ftse 100 futures up by 21 points. s&p futures hedging lower by .1 of 1%. let's look at the asian market, because the mood around the chinese equities story is still pronounced after the gains of course since those measures were announced. china mainland market reopens on tuesday. chinese stocks in hong kong up 1.5%. broader index of point nine of 1%.

nikkei getting a lift up 2.3%. the japanese yen currently off by .1 of 1% at 148.59. let's flip the board in the cross asset. it saw a big move lower in terms of treasuries with guilds up and of the two year closing in on the 4% level. 3.95. euro-dollar softer by .1 of 1%. a central bank governors saying it is likely you will get another cut the meeting this month. brent 77.74. we keep an eye on tensions in the middle east. let's get to the middle east, because as israel marks a year sense of those deadly october 7 attacks by hamas, it remains locked into a multi-front war with nuclear end in sight. democratic presidential nominee kamala harris was asked about the conflict in an interview on

60 minutes. v.p. harris: the work that we do diplomatically with the work of israel is an ongoing pursuit around making clear our symbols, -- principles, which include the need for humanitarian aid, the need for this war to end, they need for a deal to be done which would release the hostages and create a cease fire. tom: let's bring in bill faries. we heard from the presidential candidate for the democrats on what she gets expecting, would like to see from israel when you run from this devastating, brutal attack by hamas, and since then so much has changed on the ground in the region, and it is a conflict it seems to be spiraling at this point. >> yeah, there is no sign that the truce, even the interim

truce of the u.s. has been pushing for for five or six months is closer to a reality. you have is real continuing to go after hezbollah positions in southern lebanon. you have with the renewed attacks in northern gaza, and then of course much of the world waiting to see if and when israel responds to the wave of attacks from iran just last week. if anything, the situation appears to be escalating, and certainly it looks unlikely there will be any kind of truce or de-escalation before the u.s. presidential election, and this could easily carry on through the end of the year now. tom: a sobering assessment, and it is a factor in terms of that run up to the was alexion in november. we heard the vice president being asked about that. the democrats moving onto the

front foot in terms of these media appearances. they have been criticized for not putting harris in front of tv cameras and reporters more regularly. what can we expect in the final weeks of this race, and how significant is this pivot coming from the democrats? >> if you remember the first month after kamala harris was basically the democratic defective candidate for the election, she did almost zero national media appearances, very few interviews, and her mate tim walz has gotten criticism for the campaign is gotten criticized for not putting him in a day or more. we are seeing more of both of them. kamala harris doing a blitz of different podcasts and shows, things like the call her daddy podcasts, shows like 60 minutes. these are not generally going to be the most hostile media appearances. they will sometimes be in front of friendly audiences, but she

is definitely ramping up our outreach to some of her strengths, women. with one you are getting a younger audience, with one an older audience. we will see much more of these appearances in the final weeks. he saw tim walz on fox news, which tends to be more aggressive against democratic candidates. he was known for being quite good, quite strong on the sunday talk show circuit. i think we will see a lot more of them, and he was taking some tough questions about his debate performance, but are both candidates will be making more appearances. they are just not necessarily going to be a big national press conference type of appearances. they will go for those niche audiences when they see potential for gains at a race that could be decided by tens of thousands of votes. tom: bill, meanwhile trump returning over the weekend to the side of the first assassination attempt.

remarkable to think there are been two. returning to that then alongside elon musk. what is the trump play at this point? >> a very interesting return. it is a very different race at this point. the first assassination attempt joe biden was of the candidate. the audience was different. the world's richest men making an energetic appearance on stage. also in that audience hedge fund billionaire john paulson. there were a lot of senior campaign officials, senior donors to the trump campaign really hoping to remind people of what former president trump went through. it is no coincidence that they are back in pennsylvania where this happened. pennsylvania is the biggest of the battleground states, 19 electoral votes at play. arguably whoever wins pennsylvania could wind the whole night. this is a state where you will see both campaigns actively engaged in the next three or four weeks with multiple stops

over the last remaining days before the election. tom: bloomberg's senior editor bill faries. you can see elon musk with former president donald trump on stage. let's switch focus to the corporate space in europe, because in an interview commerzbank ceo says she sees risk in a takeover by unicredit. let's get the details from oliver crook who has been following this for us. what do you make of what we have been hearing? >> lesson, so this is really her opportunity as she has been trying to do is get in front of investors and the public and try to give her pitch, yes, because she does not recently ceo, but why it makes more sense for commerzbank to were a standalone institution, and in this interview, the first one since he has been appointed ceo and thrown into this chaotic situation that she is now facing , she is talking about the risks

associated, talking about the downsides within the possible deal. she was really saying there was a big problem potentially with sq jet arrest, theological the deal on paper is not necessarily the logic of a deal in reality. as he has also talking about the inventive over that there could be between clients being a risk and that this could all the work basically to the detriment of germany and crystal sme's that where a company is headquartered has a huge influence over the decisions that are made and the fear of basically the headquarter no longer being in germany, working to the detriment of those companies, so what you guess but afford is to renew her pitch he met a couple of weeks ago, oprah 2020 seven strategy. she went right to remain independent mckay because, work on boosting profits. intake interview she was asked at what price would you do make sense? she would not give it. she said she was confident that she could get the shares of commerzbank up to 25 to 30 euros a share. right now they are trading at 16.5 euros a share with the

unicredit premium priced intimate to get it up to 25 or 30 is taking a back to a level we have not seen on commerzbank shares since 2000 11, so that is fairly ambitious by any standard. tom: what have we been hearing from orcel? >> he came in the door loud and has been quite in the background. he gave an interview with economists reiterating many of the points he made so far, basically saying this was a totally legitimate and transparent approach. we made our ambitions very clear to the german government, so pushing back on some of the things we have heard from the german government while at the same time saying that there was also continuing to bridge the distro think there is actually a lot of synergies that can be gauged between the small bank that they already own in germany and commerzbank that there is not overlapping clients. keep lent to the region in bavaria where this would have senator britt very well. one thing he did point to, and this is significant is that

there would not be many bank branch closures. he said if there were as sort of full union between these two bags that both of the cuts would come at the head office. i do not know what that gives confidence but it may be assuaging some fears at the lower level here. tom: oliver crook on the latest from what we have been hearing from the ceo of commerzbank and an update from unicredit. not to some of the pieces of newsmaking. hurricane milton threatening to grow stronger possibly reaching category four. the store may lead to the largest evacuation in seven years as it heads tour's golf course -- gulf coast. it comes just two weeks after hurricane colleen -- hurricane helene cause to begin dollars in damage. keir starmer's top aide --

sue gray is leaving her staff role moving to a new role as envoy. it follows weeks of internal infighting and mounting criticism of keir starmer's political operation. bloomberg best learned that tencent and the founding family ubisoft are weighing options including a potential buyout of the videogame developer. ubisoft shares soared more than 30%. let's bring in our deals reported. why would tencent make this move? where are we in terms of the details of the story? >> what an interesting cross-border deal, one of those that we have rarely seen in the last few years. some of the chinese tech companies have been pretty quiet on the dealmaking front. on this one in particular able

to make sense for tencent to take advantage of the share price ubisoft as think dramatically over the last few months, and along with the family explore a potential take private of the game developer in france. it remains to be seen whether or not they will pull the trigger. it is something they are evaluating but their advisors are not to proceed, but it is definitely one worth watching. bear in mind the company has been on tremendous pressure for investors preaching the company to explore options in a pretty vocal way over the last few months. the company recently also cut the outlook for earnings after some of the titles are taking longer than expected to hit market. the company has been struggling for growth and to gain momentum,

and that has triggered the share price to collapse quite significantly, and that poses opportunities for significant investors including the family and tencent. tom: thank you very much. we will monitor how that story unfolds in the days ahead. coming up we talk to the ceo and cofounder of a space tech company using satellites to track ships set -- at sea. that is next. this is bloomberg. ♪

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tom: welcome back. hong kong typing listed shares up today after our ramp up in shipments of ai servers. let's bring in annabelle

droulers on the ground for us. talk us through the ai portion of these results and what it tells us about the demand. annabelle: it just really tells us in the discourse has significant this business is becoming for the likes of hon hai, because ai servers are seen as perhaps one of the best growth drivers for this business moving forward. it is a part of the business where they are working closely with the likes of nvidia in the design of these. they receive the checks from tsmc manufactured there. they assembly servers sent off to some of their customers, including amazon, microsoft, alphabet. all of that ramping up this ai cloud infrastructure. that is where hon hai is making gains in becoming quite dominant. in the latest figures for the third quarter period we saw the component doing quite well, and overall we saw sales around $60

billion. that was better than what wall street had been expecting a better than what the company was expecting, saying it was their best third-quarter results better. we are watching a big tech to coming up as well. tom: great stuff. annabelle droulers on the ground for us. let's stay on technology and broaden it out a little bit because houthi attacks on the red sea have seen shipping costs or. piracy cause the global economy an estimated $25 billion u.s. annually. joining me now is the ceo and cofounder of unseen labs. you are joining us on a week where you will be participating in an all-star event that

focuses on some of the most interesting startups in europe. what is the repetition? who are your clients? >> thank you for that. as you said we are a satellite operator with 50 satellites in space right now, [indiscernible] we detect and track movements. we track ships with beacons. our systems provide a range of services. tom: so you work with governments and you work with corporate clients as well. what is the potential market size and scope of this market

ultimately? what kind of dollar number can we put on this market? >> the market size is quite huge. between $5 billion and $6 billion per year. [indiscernible] the market is very nascent because we are creating it. in terms of laws for insurers and someone, and as busy we are working for public entities for fishing and others but also the private markets. tom: when you talk about oil and gas and topsy cables i think about warnings about potential

attacks by russia for example around to european energy infrastructure. do you have a role in protecting infrastructure from some of that kind of potential attack? >> we are working for some of them, yes, but maybe we should work more with them to be sure. we have clear examples of activities not far from oil and gas centers. we have seen a lot of activity in northern europe. something that we see every day. tom: you produce and design your own satellites. and you work with spacex. what is that relationship like? how many satellites do you need in space? >> we need more in space. the market is quite small.

we work with other labs also. spacex is there today. it is not a partnership. it is technically a business relationship. tom: is europe overly reliant on spacex? we need a european spacex to build out our industry? >> yes, for sure, and more european rockets. there are a lot of projects right now in france and the u.k. in the coming years european rockets will arise. a change of generation, so it takes some time, but a for sure. as a private company we know rockets.

we need more access to space. tom: thank you very much indeed. part of that space ecosystem and someone who will be appearing at the all-stars event later this week. there is plenty more coming up. stay with us. this is bloomberg. ♪

tom: welcome back. we are counting down to earnings season. we continue to focus on the macro data, inflation at this week, but the week kicks off on friday, really important in terms of whether the equity market as the legs and seeing softness among consumers. in terms of the size and scale from a earnings all the way through november 18 you get any indication october 21 and 28th,

the big days in terms of valuation of companies reporting. let's have a look in terms of our expectations have adjusted lower in terms of third-quarter earnings. you can see that edging down. analysts have been moving lower in terms of their forecast around the earnings story. you abstain -- you have seen rae equity space. whether they are holding back on spending. is that caution kicking through. we continue to keep an ion china, goldman sachs coming through with another bullish call. get another 10% on chinese equities. you can see that stretch out. others a bit more cautious. stay with us. this is bloomberg. ♪

>> good morning from london, i am anna edwards alongside guy johnson and lizzy