upside. we speak to the chief executive of come pari, as they release earnings. the first day of trading with the company's chief executive. let's get straight to the markets. this is what the futures are telling us. a little bit of pressure on the technology side. also looking at inflation expectations, but the number from france, better than expected in terms of gdp. that may filter through the cac 40 as we talk. the open is now. the dax actually opening a little bit lower. the ftse, a similar decline. if you look at some of the things we need to watch out for, traders weighing some of these bond market gyrations. you can see the curve between the 20 and the 30 years inverted for the first time since the u.s. government reintroduced a

two decade maturity in 2020. a lot going on in the markets overall. australian debt sliding. . here in europe, we talk a little bit about the european central bank and what we heard from christine lagarde. the u.s. dollar ticking up from a one-month low. crude much fluctuating. we will have more on the markets. it's -- the spanish market also growing. the estimate was 2.9%. some of the other things we are watching, china, the ongoing saga with ever grand. that remains in focus. some holders of one of its bonds did receive an overdue interest payment, buying more time for the property developer that has been troubled and really weighing on some of the chinese market. markets in general actually at

the moment grappling with a number of crosscurrents. we have some generic, positive corporate performance underpinning global equities. let's get straight to the bloomberg business flash. here is laura wright. >> third quarter profit rose more than expected as the italian energy company benefited from higher oil and gas prices. adjusted net income was 1.4 billion euros, beating the average analyst estimates. bloomberg sources say some holders of a china evergrande dollar bond have received an overdue interest payment within the grace period. that would be the second time this month the trouble to developer has staved off a default. despite those repayments, it remains at a distressed level. coca-cola may be close to buying a controlling stake in the sports drink maker body armor in

a deal that values the company at about $8 billion. the deal could be finalized in the coming weeks. the move would help coca-cola compete with pepsi's market-leading gatorade, which controls about two thirds of the sports drink market. francine, i'm still all about original. francine: i'm usually a soda kind of girl, but i guess things may change based on the demographic they are going after. joining us to talk about the markets, our tech reporter. let's kick off with you. good morning to you both. we were a little bit disappointed by some of the things happening by amazon and some of the other tech companies. what is the read across for some of the european techs as they open? >> i think the main storyline is just supply chain troubles continuing to work their way across the ecosystem. so, anyone that is heavily

reliant on chips, it is a very important holiday retail corridor coming up, it is going to be focused on debt. >> talk a little bit about inflation, we will talk about treasuries, but overall there is a feeling that some of the higher valuation stocks could be dented as we go forward. >> absolutely, we are reaching this point once again where it is a little bit of an overheated feeling and markets. markets are neil all-time highs in valuations, particularly in the higher growth sector. talking about your big companies soaring. we are starting to get feedthrough into expectations in early 2022 and that is not looking great. the expectations are that earnings might peak in the third quarter and that will start to shift lower. if you look at that in the context of the broader environment where yields are generally rising, policy is

expected to tighten over the next year, that is not usually a great environment for high-growth companies, so for the tech sector, especially after a mixed bag of earnings, it might be more bad news from here. francine: overall, we had some pretty solid tech reports and i think it is probably the next quarter where we will see more pain. i know there were issues with apple and amazon, but the rest seem to be holding on. >> a few key issues have come out. advertising has held up pretty well. that is good news for companies like facebook and google. on the other hand, supply chain issues could impact holiday ad spending and they are already impacting apple and amazon. cloud computing has been a huge driver for microsoft. it is still for amazon web services a huge profit center. and investors looking keenly at

google, google's cloud efforts. that continues to be a big theme and these companies remain [indiscernible] francine: it is -- how do we feel about this? >> i'm trying to test it out on twitter, asking one how do we feel? it was very interesting. they intended to make a big splash with this. it is potentially an environment now where maybe there is a little bit of bad press for facebook, given the recent news flow, so that is possibly mitigating some of that. the focus is the future. into 2022, a little bit of worry starting to build. francine: ivan, what is your take on meta? i'm delighted that they kept their vowels. unlike some of the other asset managers that have changed recently. is it going to be like alphabet

are you still have to take away google or is it short enough that people will catch on to it? >> i think we will be calling at facebook for a while. we were all paying attention yesterday for the hour-plus keynotes. at least they are being bold and for the moment, they have changed the conversation. francine: they certainly have changed the conversation. inflation. inflation, inflation, inflation. christine lagarde tried to push back against interest rate hikes come about the bond market is just not buying it. >> it is very interesting. our colleagues got the scoop later in the day. essentially saying that the halfhearted pushback from christine lagarde was sort of on purpose. it is interesting because that is a bit of a nod to what markets are pricing and the collective wisdom of traders that we are seeing at the moment where we are seeing this everywhere.

we have had this conversation in the u.k., that is something we are seeing in new zealand, australia, canada, this pressure on central banks to start responding to the price pressures we are seeing right now. via higher policy rates. it is really starting to build. it is significant that the ecb essentially didn't necessarily push too hard against that because typically, they would do if they think that markets are getting ahead of themselves, even though christine lagarde themselves said it is not for her to say whether markets are getting ahead of themselves. this time around, it was quite different. very much kind of a nod to what markets are pricing at the moment, so we are very much on the lookout for the ecb rate hikes to get pushed. we are looking at those expectations to go to october the first half of 2022. we will keep you all posted.

our clients will be sending out those headlines once we see those bets adjusted. francine: the traders bringing forward those bets on 20 basis point interest rate hikes. our markets editor kristine aquino, thank you for joining us. coming up, we speak exclusively to the chief executive of come pari. we will discuss demand, inflation, and the supply chain crunch. this is bloomberg. ♪

francine: welcome back to the open. we are 12 minutes into the european trading day. a little bit of pressure on some of these earnings. european stocks down overall. the picture was not as smooth for amazon and apple as what we were expecting and that could put extra pressure on some of the technology stocks. we also look at inflation. headed the g20, i cut up with the european commission president. >> we are in this together. the governments, the private sector, the citizens, we all need to know about climate change and for that we have to agree on how we move forward.

we are investing a lot into innovation. also to make clean and sustainable technologies feasible. much as we can from the public sector, there is emphasis on producing clean energy, on having the transformation that is necessary and the carbon pricing market, these are market mechanisms that have been proven in the past. the market-driven mechanisms, that is how we proceed in fighting climate change. francine: do you think the eu can have new rules? are we going to see much stricter measures? >> we see two things.

there is a huge demand for green bonds. many fold oversubscribed. there is a hunger out there for truly green that is clean and sustainable projects. we see also the reaction to the taxonomy is very positive because investors want to know whether the investments they do are not harming claimant or nature, but are sustainable and our future-proof. francine: despite a huge growth in the est market, we also see emissions climb. what does it tell you about how capital is being allocated? >> it is true that we are not on track yet. if we look at the paris agreement and the goals we set ourselves that are necessary to fight climate change and we see now ahead of cop 26, the

commitment by different countries, we are not there yet. we have to be much more ambitious. we have to transform our economy and the way we consume. it is in our common interest because we know science is very clear on that. francine: that is the european commission president. the drinks maker indicated prices will rise in 2022. that is amid high-end distribution cost. supply chain issues could hamper product availability through the key holiday season. the global crunch has become a focus of the earnings season as the impact on the business is highlighted. >> i'm sure that we have seen the worst. q4 should be much better now. we should see an increase of semi conductor supply basically quarter after quarter.

>> we have seen recovery from the impact in q3 from some of our supply base that caused a little bit deeper impact. i'm optimistic that we are through the worst of it. >> we are certainly seeing issues with finding products on the shelf. >> there is no objection when it comes to the short and midterm. francine: joining us now is the chief executive of campari. always great to speak with you. when you look at the inflationary pressures that we are seeing across the world, how are we expecting these inflationary pressures to impact going forward? >> clearly we have to respond to this because the pressures have really increased practically from august onwards. the most important thing is that we have success in raw

materials. having said that, prices have gone up. unfortunately, we will have to be more aggressive than usual on the pricing front across the globe. francine: when you look at some of these higher input prices, where are they coming from? you mentioned packaging, alcohol. what is most difficult to source at a normal level? >> we have long-term contracts at and we have secured them next year and that is a positive thing. where there is more attention is on the logistics front, particularly shipping goods across oceans. francine: by how much can you increase your prices without impacting consumer demand? >> it will vary. it won't be one-size-fits-all. we are lucky enough to have specialty brands.

that do not have any direct competitors. that is not the case when we are talking about vodka, so it will be very differentiated across categories and brands. francine: overall, you are seeing the supply issues, the cost pressures, but also at a time where i imagine demand is increasing exponentially because the world is reopening. people are more confident going to bars. how do you match up the two? >> demand is very strong because we are seeing in-house consumption still holding very strong. it has slowed down strongly, but it is way ahead the pre-pandemic era. out of home, when people are going out more often, that is really driving our sales and it is a nice problem to have. francine: i'm sure it is a nice problem to have. price increases, is it easier to

do it in the u.s. or in europe? how do you decide that? >> we will have to take it across the globe. historically, price increases have been more difficult in the u.s. there hasn't been much from a real price increase standpoint in the past years. it has been mostly mixed in growing higher end extensions, which have been dropping pricing in the market. i think that nobody will be able to escape what is happening right now. francine: you have a pretty big market share in europe. how is it going with covid cases up and in the u.k.? >> we are doing fantastic. we are growing double digits across all of our markets and all of our clusters. not only 2020, but 2019.

it is a great market for us. francine: anything on the horizon in terms of, and day? is there anything you are eyeing and which market? >> we are scouting a lot, we are digging a lot. not until they are done. francine: is there a region you want to beef up? a good value to bring into the campari group? >> our thinking remains unchanged. we are looking for premium spirits brands with a high on premises share of business, ideally with strong sales in the u.s. and asia. and obviously, that is not the simplest puzzle to put together. francine: no, i'm sure it is not. i love the asian countries going forward. zero -- a lot of the asian countries are going forward with zero covid tolerance. how does that change your

strategy or what kind of drinking dynamics do you see? do people still drink at home? or is there a real mix about bars and drinking at home? >> you have a big difference. if you look at the u.s. and europe, the on premises growing at a much faster rate than the off premises. it holds true for asia where you have a little bit of a stop and go. the city gets locked down for a few weeks. that impacts not only the consumption, because we have to cancel or delay brand activation. francine: have our tastes of what we want to drink changed during the pandemic? two people want more fancy cocktails or a premium experience? >> what the pandemic has done is accelerate existing trends.

premium-ization, category such as tequila, cognac, american whiskey, apra tv are going from strength to strength. francine: specifically for the u.k., how much do you worry about a lack of drivers? how much do you worry about tariffs coming in out of the country? >> it is an issue, but we have so far been able to handle them. let's see what is going to happen obviously over the holidays, where there is going to be a huge increase in demand for transportation and logistics. but we have enough product on the ground in the u.k. francine: that is good to know. we are in glasgow and a couple of days and we will have world leaders and a lot of chief executives. what are you doing for sustainability? i don't know if there is low hanging fruit such as recycling that you could accelerate on or whether you are looking at scope 1, 2, and three? >> we have taken important

commitments this year, a reduction in greenhouse emissions by 30%. energy usage, as well, zero waste to landfill. at the same time, we are clearly looking into making a more important pledge next year. francine: thank you so much for joining us. the chief executive of campari. volvo cars also makes it stockmarket debut. we speak to the carmaker's's chief executive. send in your questions. this is bloomberg. ♪

francine: welcome back to the open. 26 minutes into the european trading day. it is a friday. we are still seeing an increase when it comes to stocks. we worry about margins. we worry about supply chains. we look at some of the yields. bonds are extending the decline. markets are traveling.

corporate performance. but these inflation risks from the supply chain boosting expectation for rate hikes. coming up, volvo cars making its debut. this is bloomberg. ♪

francine: welcome back to the open. 30 minutes into the european trading day. here are your top stories. disappointing tech numbers. apple and amazon tumble, sparking fears of an unhappy holiday season. facebook announces a major rebrand. ecb high combats stay alive after mild -- hike bets stay alive. french gdp surprises to the upside. key interviews this hour. volvo cars rises on its first day of trading and we will speak

to the chief executive. first things first, this is what the markets are telling us. a lot of these equities are being supported by some of the corporate news that was not bad at all. the other things we are watching out for, the european central bank renewing its pledge to conduct emergency bond buying at a moderately slower pace. christine lagarde acknowledged inflationary pressures that will last longer. we need to look at some of the industries and sectors that are moving the most and it is not only technology stocks, but a little bit of pressure for media. i know there is a lot going on that we need to keep an eye on. we are seeing some of those under pressure. technology, telecom down. markets grappling with some of

these crosscurrents that we have been talking about. the wall of worries. inflation risks because of supply chains at the forefront. the long-awaited volvo car ipo has finally happened. carmaker shares are up on its first trading day. joining us now is the volvo cars chief executive. thank you for joining us, especially on this special day. congratulations on your first day. how are you going to deal with some of these supply issues? how do you see a playing out? >> you are thinking surprise issues with the electrification. i did not quite understand your question? francine: just in general, are you worried that you won't have

access to chipmakers. how much supply chain issues will we see in the future? >> that has been a problem since quarter 3, but it is really related more in the far east. some of our suppliers have been closed down. now we see some lights, but it will also be a problem in quarter 4. i still see this as something short-term. it is not an issue for our developments long term. i'm quite confident that this will normalize, but we need some time. >> when you look at tv manufacturers like tesla, they are definitely valued differently than anyone else.

are you expecting a re-rating or investors to reprice you? >> i think you are valued what investors believe you are going to perform in the future. investors no value electric cars very high. i think that is quite obvious. we have claimed we are going to transform our company in that direction, so it is a matter of credibility and if investors believe in our story, i believe we will have a valuation moving in that direction. that is what we work with right now. francine: it is quite exciting for you. are you disappointed that you don't have big international investors among your shareholders? >> i think we have quite a lot

of international investors, but it is quite natural that we would have the percentage, around 200,000 new investors coming in here, so they are all nordic. of course our company will for sure believe we will have a more global percentage here in the years to come. francine: is there a worry or have you had conversations where investors worry that because of the chinese ownership it seems as a risk by big investors? >> i think that has of course factored. i don't think ownership really relates to that, but that has been one thing. i think more important is that

here in the nordics, we are well known, people have followed our development for many years. when you go outside, it takes some time for people to start following us, analyzing our performance, but we have been global in all other respects. it is all very global and i'm quite sure our ownership structure will also be as global as the company is in other respects. francine: you will have a pretty strong balance sheet, so how will you use it? what will you do with it? >> today, we are conventional, now we want to bring them along into the new electric future.

it will take some time and we will build only electric cars. that will not be free of charge. we need to develop an software development, new online tools, and last but not least, factories. we need to build a battery factory and research to have the core technology for the cars of the future. this is independent of the business climate, that is why we are able to make this new shares today to secure that transformation. francine: your shareprice is doing pretty well. it is gaining more than 10%, but you did have concern to raise the full amount of the capital and you listed at the lower price than initially thought.

what does the 10% or 12% share pricing tell you about what happened? >> [indiscernible] i think we show the starting price which left room for our investors. we were initially out, we decided to start lower. that was really to secure the deal. i think also to leave some room, i think that is wise long-term. francine: thank you so much for joining us, the volvo cars chief executive on the first trading day for the company. coming up, the world's largest social network undergoes a rebrand. we get the reactions from like

two angry emoji faces. we will have the details on meta coming up next. this is bloomberg. ♪

francine: welcome back to the open. 41 minutes into the european trading day. a little bit of pressure. a lot has to do with the tech stocks. apple and amazon falling and post market.

we have seen a bit of equities being supported. this was throughout the last couple of days thanks to earnings. let's get back to apple and amazon posting disappointing figures. they fell in post market trade. facebook unveiled the big rebrand to embrace its focus on virtual reality. everyone is glued to see what meta was. let's get the details. there are a million questions about the apple and amazon supply chains, but also meta. is it going to catch on? >> that was big news yesterday. with apple, on the earnings call, tim cook saying it was the reason for a $6 billion head on revenue. total revenue coming in at $83 billion, below the street expectation. products including iphones, wearables, and mac underperformed. services revenue came in at a record for apple. apple is trying to pivot away

from a products only-based model. services currently account for 22% of total revenue. in terms of iphone shipments, that was at 50 million. apple is the world's second-largest smartphone maker. no supply chain bottlenecks for amazon. it was a labor shortage, higher freight costs, meant net sales underperformed. one darling for amazon is amazon web services, the cloud product year on year revenue for aws was up 39%. for facebook, meta, virtual-reality, facebook will officially be called meta -platform. it is about the tradition -- transition to virtual-reality. we learned that virtual-reality labs will be reported separately from the traditional family of applications. the oculus gaming headset, the smart glasses collaboration with

ray-ban. i'm sure one of those products might be on your christmas list. francine: i'm not sure about that. there are many jokes around. are they now the manga stocks? it is only financial analyst humor that works in this case. president biden has delivered a framework for the latest version of the economic agenda for democrats in congress. he warned that the future of his presidency and the majority party's future is at stake. what can we expect going forward? >> it was a big breakthrough for biden. there've been months of negotiations on capitol hill. he didn't want to leave for europe empty-handed and he delayed his trip by a few hours and was able to deliver this framework, this 1800-page framework for legislation that now needs to be written. this being a brief breakthrough,

there is still a long road ahead in congress. this needs to be translated into legislative text. that could take days or weeks. we are hearing from progressives and others that the top line, $1.75 trillion, is nowhere near the $3.5 trillion that they started out. there are many things like drug pricing, regulations, a billionaires' tax, the state and local tax deduction, things that folks want to see added to this legislation that was left out of the framework. this is still a long, long way from the finish line. the stakes are very high. biden said that his presidency and the future of the democratic majorities in the house and senate in the midterm election coming up in november, that those hinge potentially on what happens in the coming days in congress. i think there will still be a lot of emphasis while he is overseas on getting this at least to the next stage, if not over the finish line soon.

francine: thank you so much. the very latest on this biden plan. world leaders for the g 20 summit, international diplomacy will once again be put to the test. heads of state will be looking for consensus on geopolitical tensions. for more, let's get straight to our european correspondent, maria tadeo. is there anything leaders will definitely agree on? >> we know that there will be in agreement on the oecd corporate minimum tax. this is something that in particular the europeans have been pushing and calling on for years. that is expected to be sealed. there are questions in terms of the real implementation, but the real debate this morning is more on the climate. that is where officials say they are concerned that we may not get a breakthrough here in rome leading into the cop summit. it could be a problem if it is seen as not being seen to it

enough to hit the paris target. the real concerns are in the climate front and the expectation is that this will be very difficult and voices are becoming increasingly pessimistic on the fact that we may not get an ambitious deal. we know that russia and china are not attending this g20 summit. china is seen as the biggest country that needs to make the bigger move. we are hearing that behind the scenes negotiations are still happening, but that breakthrough until now has proven elusive. francine: what is for lunch? i don't know whether i'm talking about you or the g20. when in rome, you've got to always talk about lunch. [laughter] >> when is the lunch? the one lunch we are keeping a close eye on is the one from the pope and president biden, they are having a bilateral meeting today. the president has said he is a devout catholic, the second u.s. president to be a catholic visiting the vatican. a lot of that will hinge on

climate. the pope is asking for dramatic action on climate change. it will be interesting to see how the two align on this. what is for lunch? i don't know yet, but i will keep you posted. francine: please. we should do a poll on twitter. maria tadeo in rome for us. coming up, more on corporate earnings. we speak to the chief financial officer next. this is bloomberg. ♪

francine: welcome back to the open. we are about 50 minutes into the european trading day. technology stocks, disappointing earnings from amazon and apple. we look at inflation and the earnings corporate sector -- the earnings that came out for the corporate sector were not that bad at all. swiss re swung to profit. despite large-scale natural disasters and the continuing fallout of the pandemic. joining us now is the chief financial officer. how are insurers and reinsurers dealing with climate change and what do you hope will be

achieved at cup 26? -- cop 26? >> swiss re has been focused on climate change literally for 30 years. it is core to our businesses, the kinds of natural catastrophes that we routinely ensure and reinsure our suspect to a challenge from climate change were we believe the frequency of extreme weather events is clearly increased in recent years precisely because of the climate actions that we have seen for the climate deteriorations we have seen and the warming of the planet. in this case, and the first case, we are expecting we will make a contribution in pointing out the facts and figures we got in our databases of how damaging this has been to societies, as well as an ability to help people think through what the benefit of some of the radiation issues can be if we move faster

and further. i can't predict where the are going to land, but what i can say is we continue to support, through our own actions, both in our investments and the extension of insurance covers to help become less dependent carbon society. francine: overall, it seems that there has been a lot of hype out of esg products and the increase in demand, but at the same time the number of emissions has also risen. what does it tell us about finance and how they are deploying capital? what can finance do better? >> i think finance can do a couple things better, but certainly on the insurance side, two things we can do, we can reduce our support of the most polluting industries. we have already taken actions limiting our insurance on thermal coal to truly emerging

markets, where that is unnecessary reliance, but over time a weaning those economies off thermal coal. producing the most carbon intense oil and gas activities such that we continue to not producers -- nudge producers into cleaner developments. and provide products and insurance behind clean energy alternatives and so help with the development of major industries taking noncarbon sources that will in fact make a big change over time, not tomorrow, but over time in the trajectory of global warming. francine: talk to me a little bit about the protection gap, not only about climate change, but basically how you define life insurance as the amount of income a family would need to continue their living standards. how has the pandemic and covid-19 affected that living

standard going forward? especially in emerging markets. >> i think one of the silver linings of the pandemic has been an increased awareness of the need for protection products for income, health, and the willingness of people to talk about ensuring themselves. swiss re is well-positioned because the majority of our activities are related to those protection capabilities. we help the primary companies developed a product suite that can be deeply and quickly sent out to major populations that are underserved today. some of those are in emerging markets, some of those are in very developed markets, and we look forward to continuing to grow the franchise we have with these products, which are, as you suggest, in increasing demand as a result of people's

recognition of their own mortality through the pandemic. francine: will premiums automatically go up? >> premiums we expect to be going up because of this demand on the life and health side. we are also helping some major restructuring going on, where the focus typically has not been on the protection capabilities, but rather on savings related activities. those activities will continue, but the pivot, if you will, of many companies to build a capability of helping people ensure their lives, their livelihood, and the economic protection of their families is in a sweet spot for swiss re and we are helping our primary companies deliver these products in many markets around the world. francine: thank you so much for joining us. "surveillance" is up next. we will have a number of chief

executives joining us. we will talk earnings and inflation. the picture for equities is a little subdued. we had disappointing figures from amazon and apple. this is bloomberg. ♪

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>> and the >>. >> we are not on the right track . we have to be more ambitious and show more leadership to transform the economy, the way we consume. >> this is "bloomberg surveillance: early edition," with francine lacqua. francine: good morning a welcome to "bloomberg surveillance: early edition