SK Hynix Earnings Surge Drives Tech Stocks Higher

OLIVER: LIVE FROM FRANKFURT. I’M OLIVER CROOK WITH YOUR TOP STORIES. THE TECH TRADE. CHIP STOCKS. KOSPI SET FOR ITS BIGGEST RALLY IN THREE MONTHS. A BANKING BOOST. STANDARD CHARTERED KICKS OFF EARNINGS WITH A BEAT AND RAISES ITS OUTLOOK. DEUTSCHE BANK, UBS, SANTANDER. PLUS BUDGET TAU IN THE U.K. CHANCELLOR JOHN HEALY PLANS TO DELIVER BREATHING SPACE FOR BRITAIN AS IT HOPES A PAIRED BACK BUDGET WILL HELP AFFORDABILITY. YOU CAN SEE DOWN BY 1/3 OF 1% THIS MORNING AS YOU CAN SEE DOWN BY 17 POINTS. WE ARE ALSO LOOKING CLOSELY AT THAT AI TRADE AND THE PROXY SCORE. OF COURSE THE NASDAQ 100 FUTURES UP AGAIN. THAT WOULD BE THE THIRD DAY OF GAINS ON THE NASDAQ THIS WEEK. WE HAVE ALREADY PUT 2.4% ON THE NASDAQ THIS WEEK. WE HAVE BEEN BOUNCING AROUND THIS WEEK 114-117. WE STABILIZE THIS MORNING AT $115 A BARREL. OLIVER: GOOD MORNING. WE HAVE A TON OF EARNINGS TO GET THROUGH THIS MORNING. LET’S BEGIN NOW WITH WHAT WE’RE SEEING FROM DEUTSCHE BANK. WE’LL HEAR FROM THE CHIEF FINANCIAL OFFICER SHORTLY IN ABOUT 30 MINUTES TIME. WE CAN SEE THE ALL IMPORTANT TRADING AND SALES REVENUE COMING H AT 2.4 BILLION EUROS. THAT IS IN LINE WITH ESTIMATES. WE SHOULD SAY THAT IS GOING TO BE CLOSELY WATCHED. IT IS GOING TO BE DOWN YEAR-ON-YEAR BUT KEEPING WITH WHAT WE HAVE SEEN A ACROSS A NUMBER OF DIFFERENT BANKS. DOWN ABOUT 3% OVER AT DEUTSCHE BANK. BETTER THAN WHAT WE HAVE SEEN WITH OTHER PIERCE. HIKING CYCLE AT THE ECB. INTEREST RATES ARE GOING UP. YOU LOOK AT THE LOAN BOOK AND LENDING FOR CORPORATES THAT HAS CONTINUED TO INCREASE. WE ARE NOT SEEING THE DIFFICULTIES WITH HIGHER RATES FROM THE ECB AND FROM THE BOND MARKET WITH RATES GOING UP HIGHER AND HIGHER. IN GERMANY, HAVING AN IMPACT ON THESE SORT OF LOANS THAT THEY ARE GIVING OUT TO BUSINESSES IN GERMANY. THAT IS A POSITIVE STORY FROM DEUTSCHE BANK. WE’LL BE HEARING FROM THE CFO LATER AT 6:30 LONDON TIME AND 7:30 HERE IN FRANKFURT. LET’S TAKE IT FROM THE BANKING STORY. TECH LEADING THE RALLY ACROSS ASIA THIS MORNING. LET’S SEE HOW THE MARKETS ARE FARING WINNIE HSU IN HONG KONG. HI. WINNIE: VERY EXCITING DAY FOR ASIAN MARKETS TODAY. UP 1.4% SUPPORTED BY THIS CONFIDENCE AND THE EXCITEMENT AROUND THE GLOBAL AI TRADE. OF COURSE YOU HAVE SOUTH KOREA’S KOSPI INDEX UP 7.4%. HAVING THE BEST DAY SINCE AUGUST AND FOLLOWED BY SOME GAINS WE SEE IN THE TECH GAUGES THIS IN JAPAN AND HONG KONG. THE BIG CATALYST COMING THROUGH BY SOLID EARNINGS FROM SK HYNIX. UP BY MORE THAN 10%. COMING THROUGH NOT JUST BECAUSE WE SAW THE PROFITS SURGING BEATING EXPECTINGATIONS BUT ALSO THE MASSIVE SHAREHOLDER RETURN PLUS SOME OF THESE POSITIVE COMMENTS WHEN IT COMES TO OUTLOOK FOR THE MEMORY SHORTAGE AND THE LONG-TERM AGREEMENTS WITH CUSTOMERS AND ALSO THE CAPITAL EXPENDITURE. ALL OF THIS REALLY PAINTING A PRETTY POSITIVE PICTURE CHECK ALL OF THESE BOXES. SO WE ARE WAITING FOR SAMSUNG ELECTRONICS TO REPORT TOMORROW. NOW ANOTHER AREA IN TECH THAT IS REALLY GAINING IS IN THE SHARES LIKE MEDIA TECH IN TAIWAN. AFTER OPENAI SO THEY HAVE THE INTENTION TO BUY GOOGLE CHIPS AS WELL AS SOME OF THE FURTHER TIE-UPS BETWEEN ORACLE AND GOOGLE. FLIP THE BOARD, WE TAKE A LOOK JIO PLATFORMS IS DOING NOW ONE HOUR INTO THE TRADING DEBUT. YOU’RE SEEING STOCKS UP 22%. THE COMPANY IS ONE OF THE BIGGEST INDIA TELECOM COMPANIES AND IT HAS RAISED $3.1 BILLION IN THE BIGGEST IPO IN INDIA AND IS NOW THE SECOND MOST VALUABLE COMPANY IN THE COUNTRY. LOTS OF EXCITEMENT. WE’LL SEE THAT IF THAT MOMENT UP CONTINUES THROUGHOUT THE TRADING SESSION. BACK TO YOU OLLI. OLIVER: THANKS VERY MUCH. SK HYNIX LEADING GAINS ACROSS THE TECH SECTOR IN ASIA THIS MORNING AFTER POSTING A STRONGER THAN EXPECTED PROFIT SURGE. PLANS FOR A $45 BILLION SHAREHOLDER RETURNS. LET’S BRING IN OUR BLOOMBERG MARKETS REPORTER ANTHONY STEVENS. THIS IS A BREATH TAKING NUMBER HERE. I THINK WE SAW PROFITS INCREASE BY SEVEN TIMES. 45 BILLION BACK TO SHAREHOLDERS. TAKE US THROUGH THESE? S IN A LITTLE BIT MORE DETAIL. >> INTERESTING HOW STRONG THE NUMBERS ARE AND IF FACT THAT THEY HAVE LISTENED TO SHAREHOLDERS IN TERMS OF RETURNING SOME OF THIS MONEY BACK TO SHAREHOLDERS. SHAREHOLDER RETURN PROGRAM IS VERY STRONG AT THE HIGH END OF THE INDIANAPOLIS THAT HAVE BEEN REPORTED OVER THE PREVIOUS WEEK. WE ALSO HAD THEM BLOW THE DOORS DOWN IN TERMS OF OPERATING PROFIT AND SALES NUMBERS. WHAT HAPPENED WITH THE SHARES REALLY ACCELERATED WHEN GUIDANCE WAS COME UP ON THE TECHNOLOGY FRONT. IT IS REALLY INTERESTING TO ME THAT THE MARKET IS FAR MORE CONCERNED ON TECHNOLOGICAL PROGRESS ON PRODUCTION, ON CAPACITY THAN IT IS ON THE FINANCIALS. WE KNOW FINANCIALS ARE STRONG. THIS IS ONE OF THE MOST MODELED COMPANIES IN ASIA. WHAT THEY ARE LOOKING IS THE TRANSFER FROM 3 TO 4. THEY SAID THEY WERE GOING TO DO THAT IN THE FOURTH QUARTER AND HAVE NO PRODUCTION PROBLEMS. BIG GUIDANCE AS WELL. SO THEY ARE ABLE TO OUT. CAPACITY TO A DEGREE THAT REALLY REASSURES INVESTORS. THE SECOND THING IS HOW MUCH OF THIS CAPACITY IS NOW LOCKED DOWN ON LONG-TERM CONTRACT. 50% OF THE SUPPLIES LOCKED DOWN ON CONTRACTS. IN TERMS OF DEMAND, IT IS REALLY IN THE GRANULARITY OF THE STORY. A GREAT DAY OBVIOUSLY TO UP 11 THAT YOU SEEING NOW. A LOT MORE DELTA AND A LOT MORE ACCELERATION CAME FROM THE DETAILS OF THE TECH AND JUST HO HIGHLIGHT HOW HARD THAT TECH IS, WE JUST HAD WRITERS SAY -- THE CHINESE COMPETITOR AND THEIR ENTIRE GENERATION BEHIND. OLIVER: LET’S TAKE A TECH STORY GLOBAL. WE HAVE DONE ASIA SIDE. GOT THE RESULTS FROM ASAN INTERNATIONAL OVERNIGHT. WHAT DID WE LEARN FROM THEM? >> IT IS A VERY TOUGH BUSINESS WE DO SEE THEM BENEFITING IN TERMS OF REAL DEMAND FROM ALL OF THESE BOUND THOSE MORE PUNCHY KIND OF REQUIREMENTS ARE GENERATING -- -- THEIR TARGET, PRESUMABLY THREE YEARS EARLY I THEY THINK. THEY INCREASED THEIR OWN TARGET FROM THE LAST GUIDANCE. VERY STRONG NUMBERS. WHAT IS INTERESTING ON THE NEGATIVE SIDE IS MARGINS STUCK. ALL OF THIS TECHNOLOGY, YOU KNOW, IT DOES TAKE MONEY. IT DOES TAKE R & D. THERE ARE BOTTLENECKS REASON TO CHEER SIDE AS WELL. WE HEARD THAT FROM THE JAPANESE WHO ARE IN THE SAME BUSINESS. IT IS REALLY INTERESTING TO SEE THESE BOTTLENECKS CROP UP IN THE PHYSICAL WORLD OF THIS BUSINESS. OLIVER: BLOOMBERG’S ANTHONY STEVENS THANK YOU FOR RUNNING US THROUGH A. WE’LL WE WILL LOOK AT EARNINGS FROM SOME OF THE HYPER SCALERS BROADLY AHEAD OF THAT ANTHROPIC IPO. ON TO THE U.K. POLITICS. THE U.K. CHANCELLOR JOHN HEALY SAID HIS FIRST BUDGET WILL DELIVER BREATHING SPACE FOR BRITAIN. ANDY BURNHAM LOOKS TO SUCCEED WITH. JOHN HEALY IN A TOUGH SITUATION. TRYING TO KEEP VOTERS AND THE LABOR PARTY HAPPY AND OUTLINING THE BALANCING ACT. >> WHAT ARE WE GOING TO GET? >> THEY ARE PEGGING THIS AS A NOTHING TO SEE HERE STEADY AS SHE GOES BUDGET. UNDERNEATH THAT THERE IS QUITE A TOUGH BALANCING ACT. HEALY’S PREDECESSOR RACHEL REAVES RAISED TAXES ALREADY BY 60 BILLION POUNDS IN HER TWO BUDGETS. SINCE THEN INFLATION HAS RISEN. THIS PLANS TO ALLEVIATE TENSIONS ON HOUSEHOLDS. HEALY PLEDGED FISCAL DISCIPLINE IN THIS BUDGET. BUT IT IS ALL AGAINST THE BACKDROP OF COURSE OF THE ECONOMY AND OF HIS HEAD ROOM HAVING SLUNK. IT IS ESTIMATED TO -- SHRUNK. IT IS ESTIMATED TO HAVE HALVED. HE IS GOING TO BE PUSHING THOSE BIG SPENDING DECISIONS TO A LATER DATE. TO ALLEVIATE PRESSURE ON HOUSEHOLDS AND OPT FOR HIGHER TAXES ON BANKS INSTEAD TO GIVE SMALL TARGETED GIVEAWAYS TO HOUSEHOLDS. OLIVER: THINKING ALSO ABOUT THIS SORT OF GOVERNMENT AIMING TO DO THAT DO NO HARM BUDGET. HAVE THAT SUCKED SO FAR IN DOING NO HARM? WHAT ARE THE MARKETS LOOKING FOR HERE? >> SO FAR IT IS RELATIVELY CALM. THEY HAVE AVOIDED THE GLARE OF INVESTORS IN THE U.K.. THE EXPECTING SAYING THAT HEALY WILL MANAGE TO CONTINUE THIS. IT IS THOUGHT THAT IF HE DOES THIS SMALL TARGETED SUPPORT PACKAGE THAT WILL BE QUITE RECOMMEND RECEIVED BY MARKETS BUT OF COURSE THERE IS A RISK. IF RISK IS IF HE PUSHES THESE SPENDING DECISIONS LATER DOWN THE LINE AND DOESN’T OUTLINE HOW HE IS GOING TO FUND LATER SPENDING, THAT FISCAL CREDIBILITY COULD START TO BE ERODED AND POTENTIALLY THE U.K. COULD BE BACK IN THE BOND MARKET. WE HAVE SEEN HOW THAT HAPPENED WITH MINI BUDGETS, THE LIZ TRUSS MINI BUDGET IN 2022. HE WILL WANT TO AVOID THAT. OLIVER: THANK YOU SO MUCH FOR THAT ROUNDUP. WE’LL BE LOOKING TO YOUR COVERAGE. WE’LL BRING SPECIAL COVERAGE OF THE CHANCELLOR’S ANNOUNCEMENTS AT 12:00 P.M. LONDON TIME, A LITTLE BIT LATER TODAY. TOMORROW THE OPENING TRADE WILL DIG INTO WHAT IT MEANS FOR THE ECONOMY IN A SPECIAL SHOW WITH A LIVE STUDIO AUDIENCE AT 8:15 A.M. LONDON TIME TOMORROW. GO TO BLOOMBERG.COM/EVENTS TO FIND OUT ABOUT THAT COVERAGE. STILL AHEAD, WE HAVE A PACKED SHOW, A TON OF EARNINGS TO GET THROUGH AND WE’LL DO THAT GETTING THAT BUT FIRST AN HISTORIC ELECTION IN ISRAEL COMES DOWN TO THE WIRE. WE HAVE DETAILS THAT NEXT. THIS IS BLOOMBERG. ♪ >> [SPEAKING ANOTHER LANGUAGE] >> WE MUST ESTABLISH A STRONG RIGHT WING NATIONAL GOVERNMENT. THIS IS WHAT NEEDS TO BE DONE. IT IS FORBIDDEN TO ENDANGER ISRAEL BY FORMING A GOVERNMENT THAT RELIES ON ANTI-ZIONIST ARAB PARTIES. >> WE MADE HISTORY. I STAND HERE TODAY EXCITED. THIS MORNING THE PEOPLE OF ISRAEL WENT TO A REFERENDUM ON LEADERSHIP THAT WILL GUIDE ISRAEL IN THE COME YEARS. TONIGHT WE RECEIVED AN ANSWER. THE PUBLIC DECIDED IN FAVOR OF CHANGE. LEIF: THE WORDS FROM THE ISRAELI PRIME MINISTER BENJAMIN NETANYAHU AND THE OPPOSITION LEADER GADI EISENKOT. THE TWO SIDES NECK AND NECK AS VOTES CONTINUE TO BE COUNTED. NEITHER HAS ENOUGH VOTES TO FORM A GOVERNMENT YET. LET’S GET MORE FROM OUR MANAGING EDITOR FOR THE MIDDLE EAST. BRAEKHUS DOWN ON WHERE WE ARE AND WHERE WE FIND THINGS RIGHT NOW THIS MORNING. >> GOOD MORNING, OLIVER. AS YOU SAID, THE VASE TOO CLOSE TO CALL. NEITHER BENJAMIN NETANYAHU -- RACE IS TOO CLOSE TO CALL, BENEATH JULIEN BENNETEAU OR GADI EISENKOT HAS ENOUGH VOTES TO MULE THE GOVERNMENT. BENJAMIN NETANYAHU. INFORM 61 VOTES ARE NECESSARY FORM THE GOVERNMENT IN ISRAEL. HOWEVER JUST A FEW MINUTES CHANNEL 12 REPORTED WITH JUST OVER HALF OF THE VOTES COUNTED NETANYAHU’S RIGHT WING BLOCK IS NOW SET TO GET ABOUT 55 SEATS OPPOSED TO EISENKOT’S BLOCK GETTING ABOUT 49 SEATS. NOW WITH NEARLY HALF THE VOTES STILL REMAIN TO BE COUNTED ANY SMALL SHIFT MAY RESULT IN SERIOUS DIFFERENCES, SIGNIFICANT IMPLICATIONS FOR WHAT HAPPENS NEXT BUT AS THINGS STAND NOW, NETANYAHU’S BLOCK DOES SEEM TO HAVE A LEAD OVER THE OPPOSITION BLOCK. WHAT HAPPENS NEXT IS GOING TO BE BASICALLY PRESENT, ULTIMATELY DECIDING WHO HE THINKS HAS A BETTER CHANCE OF ASSEMBLING A NEW COALITION AND HE WILL NOMINATE THAT PERSON, THAT HE HAD THAT LEADER. THAT IS A PROCESS THAT IS LIKELY TO TAKE DAYS OR WEEKS STARTING FROM THE END OF THIS WEEK. OLIVER: IT IS A FASCINATING AND CONSEQUENTIAL ELECTION FOR ISRAEL. WE HAVE THE ARAB PARTIES THAT HAVE SURGED TO 18 SEATS. HOW IS THAT GOING TO PLAY INTO THE DYNAMIC IF THEY DECIDE POE GOVERNS NEXT? >> THAT BRINGS US BACK TO THIS KEY QUESTION OF ELECTION MATHEMATICS THAT WE JUST TALKED ABOUT. THE TOP ARAB PARTIES ARE EXPECTED TO GET EIGHT SEAT. THAT NUMBER IS NOW DOWN TO 16. STILL WE HAD WELL AHEAD, WELL MORE THAN WHAT POLLSTERS EXPECTED THOSE TWO 40’S GET AND YES, THEY COULD STILL SERVE AS KING MAKERS. THE KEY QUESTION ABOUT THE FUTURE OF THE ARAB PARTIES AND THEIR ROLE IN ANY FUTURE GANG OF OF ISRAEL IS WHETHER OR NOT THESE LEADERS ANY OF THESE TWO LI LEADERS WILL ACTUALLY WANT INCLUDE THEM A COALITION GOVERNMENT, ESPECIALLY EISENKOT IS EXPECTED TO BE BACKED BY THOSE PARTIES. HE MADE IT CLEAR THAT THERE ARE SOME ISSUES TO BE THAT NEED TO BE RESOLVED, MAINLY HE EXPECTS THESE PARTIES TO FIRST ACKNOWLEDGE ISRAEL AS A JEWISH STATE AND SECONDLY, DECLARE HAMAS TO BE A TERRORIST ORGANIZATION THAT NEEDS TO BE DISMANTLED AND THAT IS SOMETHING THAT WILL -- MIGHT PROVE TO BE TRICKY IN TERMS OF HIS RELATIONSHIP WITH THE LARGER OF THOSE TWO ARAB PARTIES GOING FORWARD. OLIVER: BLOOMBERG’S MANAGING EDITOR FOR THE MIDDLE EAST KEEPING US UP TO DATE. I’M SURE HE WILL BE HERE THROUGHOUT THE MORNING TO GIVE US UP UPDATES AS WE GET MORE INFORMATION ON THE ELECTION. COMING UP, A LIVE LOOK AT THE FED’S RATE DECISION. WE HAVE NOT YET TALKED ABOUT THE FED ON FED DAY BECAUSE IT IS SO BUSY WITH EARNINGS AND ALL THE OTHER STORIES. WE’LL DO,000 NEXT AND GET SOME CLUES ON THE RATE OUTLOOK. THAT WILL BE NEXT. THIS IS BLOOMBERG. ♪ OLIVER: WELCOME BACK TO BLOOMBERG "DAYBREAK: EUROPE." NOW TO SOME NEWS, TOP STORIES MAKING NEWS THROUGHOUT THE MORNING. DEFEATED BRAZILIAN PRESIDENTIAL CANDIDATE FLAVIO BOLSONARO ARRIVED IN THE UNITED STATES. THE SON OF THE JAILED FORMER PRESIDENT FACES MULTIPLE CRIMINAL INVESTIGATIONS IN BRAZIL. PRESIDENT LULA DA SILVA SAYS HIS DECISION TO LEAVE IS SHAMEFUL. UBS IN LINE WITH EXPECTATIONSES OF NET NEW ASSETS. IT SAYS THE PACE AND SHARE OF FUTURE BUYBACKS WILL DEPEND ON SWITZERLAND’S DEBATE OVER POTENTIAL CAPITAL REQUIREMENTS. AND THER IN LINE WITH EXPECTATIONS -- SAN AND THER IN LINE WITH EXPECTATIONS. FUNDS RISING 16% FROM A YEAR EARLIER. IN FRANCE, B. B.N.P. PARIBAS HAS HELPED NET INCOME RISE 14%. THE BANK ANNOUNCED A 1.3 BILLION EURO SHARE BUYBACK IN LINE WITH ITS DISTRIBUTION POLICY. FROM THE BANKS TO THE FEDERAL RESERVE, THE UNITED STATES EXPECTED TO HOLD RATES LATER TODAY EVEN AFTER HOTTER THAN EXPECTED INFLATION IN SEPTEMBER. A DECEMBER RATE HIKES IS PREDICTED AT 80%. >> I THINK THERE IS NO INCENTIVE TO RAISE RATES AS YOU SAID. I THINK WHAT THEY HAVE DONE IS IN SEPTEMBER THEY PENCILED IN ONE MORE RATE HIKE BY THE END OF THE YEAR IN MEANS IF IF THEY DELIVER TODAY THEY MAY BE IN A SITUATION, THEY MAY FIND THEMSELVES IN A SITUATION WHERE THEY ARE FORCED TO RAISE RATES AGAIN AT THE END OF THE YEAR. I THINK PROVEN COURSE OF ACTION IS FOR THEM TO HOLD RATES TODAY. AS I MENTIONED, THE FOCUS IS ELSEWHERE TODAY, PARTICULARLY IN THE U.K. BUDGET. WHAT’S BEEN HAPPENING IN ASIA WITH NEW ZEALAND AND AUSTRALIA. OLIVER: TAKE US THROUGH WHAT’S GOING ON. WE GOT A SURPRISE HOLD, INFLATION DATA ADDING PRESSURE TO AUSTRALIA. WHAT ARE YOUR TAKEAWAYS TO THAT? >> I THINK THE MARKETS GOT IT COMPLETELY WRONG FOR NEW ZEALAND. PRICED IN A 945% CHANCE OF A RATE HIKE TODAY. HEADING INTO THE MEETING, THE INDICATIONS WERE THEY WOULD RAISE RATES. THE MONETARY POLICY COMMITTEE INDICATED A RATE HIKE AND THE CHIEF ECONOMIST SAID INFLATION WOULD ACCELERATE MUCH MORE THAN THE CENTRAL BANK FIGURED IN THE FOURTH QUARTER. EVERYTHING WAS GIVING US THE SUGGESTION THAT THE RBNC WOULD HIKE RATES BUT THEY SURPRISED THE MARKETS. THAT CAUSED THE NEW ZEALAND DOLLAR TO SLUMP. YOU LOOK AT THE CONTRAST IN AUSTRALIA. IT COULDN’T BE STARKER. THE INFLATION NUMBERS FOR THE THIRD QUARTER CAME OUT MUCH HIGHER THAN FORECAST. THEY COMMENTED THE INFLATION RATE WAS TOO HIGH. THAT SETS THEM UP FOR A RATE HIKE NEXT WEEK. IT IS GOING TO BE AN INTERESTING DICHOTOMY BETWEEN THE AUSSIE KIWI, DIFFERENTIALS BETWEEN WHAT’S HAPPENING IN AUSTRALIA AND NEW ZEALAND THAT IS REFUSING TO RAISE RATES. OLIVER: THANK YOU VERY MUCH FOR THAT ROUNDUP THIS MORNING. COMING UP NEXT, WE WILL BE SPEAKING TO THE CFO OF DEUTSCHE BANK AS THE GERMAN LENDER REPORTSERRINGS THIS MORNING. THEIR FIX GD INCOME TRADING MET ESTIMATES WITHIN THE QUARTER. RATES IN EUROPE GO HIGHER AND HIGHER. IS THAT HAVING AN IMPACT ON THE VOLUME OF LIEN LOANS THEY ARE ABLE TO GIVE OUT? IS IT GOING TO SLOW DOWN GERMAN ECONOMY? SO FAR THERE IS RESILIENCE. DATA PROJECTS GOING ON ACROSS THE WORLD. THAT WILL BE NEXT. THIS IS BLOOMBERG. ♪ OLIVER: LIVE FROM FRANKFURT. THIS IS BLOOMBERG "DAYBREAK: EUROPE." I’M OLIVER CROOK WITH YOUR TOP STORIES. THE TECH TRADE. CHIP STOCKS. KOSPI SET FOR ITS BIGGEST RALLY IN THREE MONTHS. A BANKING BOOST. STANDARD CHARTERED KICKS OFF EARNINGS WITH A BEAT AND RAISES ITS OUTLOOK. STRONG NUMBERS FROM B.N.P. PARIBAS DESPITE SOME OF THE NUMBERS WE HAVE SEEN. DEUTSCHE BANK, UBS, SANTANDER. WE WILL WITH BO SPEAKING TO EXECUTIVES FROM EACH OF THOSE. WE WILL HEAR FROM DEUTSCHE BANK EAST CEO IN A COUPLE SECONDS. PLUS BUDGET DAY IN THE U.K. CHANCELLOR JOHN HEALY PLANS TO DELIVER BREATHING SPACE FOR BRITAIN AS IT HOPES A PAIRED GOOD MORNING. LET’S LOOK AT THE MARKETS THIS MORNING. LOOKING AT FUTURES IN EUROPE TRAILING EVER SO SLIGHTLY. WE SEE THE PICTURE EFFECTIVELY UNCHANGED DOWN 22 POINTS ON THE EURO STOXX 50 FUTURES THIS MORNING. DIFFERENT STORY ON THE NASDAQ 100 FUTURES IN THE UNITED STATES. THE NASDAQ HAS ALREADY DONE ALMOST 2.45% THIS UNIQUE. ALL OF THAT YOU FOREYAIA FROM THOSE TECH EARNINGS IN THE -- EUPHORIA. BRENT AT $116 A BARREL THIS MORNING. WE’LL BE GETTING INTO THE BRENT STORY LATER AS WELL. FOR THE MOMENT, BE TALKING ABOUT DEUTSCHE BANK IN LINE WITH ANALYST ESTIMATES. PULLED IN A REPORT 15.8 BILLION IN NET FLOWS. ASSET UNDER MANAGEMENT. I TALKED WITH THE CFO AND HE IS THE CHIEF CEO OF THAT COMPANY. HAVE A LISTEN TO WHAT HE HAD TO SAY. >> I’M NOT IN THE BUSINESS OF %FING BUBBLES BUT I WOULD STAY ACTIVITY IS REEL. WE BRETT THE LARGE IPOS THAT TOOK PLACE IN SECOND QUARTER. WE’RE HOPING THAT THE ACTIVITY CONTINUES. WHAT MAKES ME MOST CONFIDENT IS THAT WE KNOW THAT THE USE CASE AND THE VALUE PROPOSITION FOR AI IS REAL. THERE IS A REAL NEED FOR DATA CENTERS. THERE IS A REAL NEED FOR THE PRODUCTIVITY. I THINK WE’RE GOING TO STICK TO WHAT WE KNOW BEST. OLIVER: DO YOU SEE A LOT MORE DEALS IN THE PIPELINE? >> OVERALL, NOT NECESSARILY RELATED TO TECH. WE BELIEVE THAT THE SECOND HALF OF THE YEAR WILL BE BETTER THAN THE FIRST HALF OF THE YEAR. WE ASSUME THERE IS ACTIVITY IN PIPELINE WHICH WE HOPE WILL MATERIALIZE. OLIVER: WE HAVE SEEN A NUMBER OF IPOS IN THE UNITED STATES. HOW IMPORTANT IS IT TO THE BROADER MARKET THAT GOES WELL? >> I THINK IT WOULD BE HELPFUL. CLEARLY IT IS CONSTRUCTIVE. IT IS ONE OF THE LARGEST PLAYERS. I WOULD THINK IT WOULD BE A POSITIVE SIGN FOR THE MARKET IFICE GOES ON TRACK. WE HOPE THAT IT WILL. IT IS NOT SOLELY DEPENDENT ON AI RELATED IPOS. OLIVER: I WANT TO TALK TO YOU ABOUT WHAT WE HAVE SEEN IN THE BOND MARKET. IT HAS BEEN A WILD PART OF THIS YEAR AND THE FIRST QUARTER. WHAT WE HAVE SEEN IN FRANCE AND OTHER SPACE AS WELL. IT IS ALSO COMING AS THE ECB IS RAISING INTEREST RATES. LOOKING FROM WHAT I SEE IN THE ESTABLISHED QUARTER HERE UNDER DEUTSCHE BANK, WE ARE NOT SEEING VOLUMES GO DOWN IN TERMS OF LENDING. THERE WAS CONCERN THAT CREDIT CONDITIONS ARE NOW TOO RESTRICTIVE IN EUROPE. THAT DOES NOT SEEM TO BE STORY IN THE THIRD QUARTER. >> FIRST OF ALL, WE ARE HEADQUARTERED IN A JURISDICTION WITH THOSE DYNAMICS AND SECONDLY AS A BANK, WE DON’T HAVE -- OUR BOOK IS NOT EXPOSED IN A WAY THAT WE WOULD FEEL THE PAIN FROM THE CAPITAL OR LENDING SIDES. WHAT WE SAW IN THE THIRD QUARTER WAS A ROBUST LOAN GROWTH FRA BOYFRIEND BANK AND IN GERMANY, OUR CORPORATE BANK REVENUE IS UP 13% YEAR-ON-YEAR LED BY LENDING FEES AND DEPOSITS. I THINK SERVE BEING PRUDENT ABOUT THEIR UNDERLYING -- EVERYBODY IS BEING PRUDENT ABOUT THEIR UNDERLYING -- THE LOAN GROWTH IN GERMANY WAS EVEN ROBUST. ARE WE SEEING PAIN POINTS IN THE LOAN BOOK? I GATHER IT IS AN IDIOSYNCRATIC STORY IN ASIA. >> ON OUR SIDE, WHAT IS INTERESTING IS EVEN THOUGH YOU SEE A HIGHER LEVEL OF INSOLVENCIES IN GERMANY, THEY PERFORMED BETTER THAN WHAT WE EXPECTED. THAT MIGHT BE THE DYNAMIC OF QUALITY UNDERWRITING. THIS QUARTER BOTH PRIVATE BANK AND THE CORPORATE BANK FROM A CREDIT PERSPECTIVE PLAYED OUT REALLY WELL. OLIVER: YOU’RE SEEING NET INTEREST INCOME UP 9% YEAR TO YEAR. YOU’RE NOT GETTING THE BITE FROM THE HIGHER INTEREST RATES. >> NO, WE HAVE DONE WELL ON MANAGE DATAS ON THE DEPOSIT ON THE PRIVATE BANK AND THE CORPORATE BANKS AND REMEMBER WE ALSO HAVE A VERY STRUCTURAL HEDGING APPROACH TO NHL INTEREST RATES WHICH MEANS THAT THE RATES GO UP, OUR BENEFITS COME PRETTY GRADUALLY. PART OF IT IS THE WAY WE RISKE MANAGE OUR BOOK. ALL IN ALL, A HIGHER RATE ENVIRONMENT UP TO A CERTAIN POINT IS BENEFICIAL TO US. OLIVER: PRIVATE CREDIT STILL HAS NOT L LOST A CENT I WANT TO TALK ABOUT GERMANY. WE WERE TALKING ABOUT SOME OF THE RECOVERY THAT IS BEING STAGED HERE. DOWN TO GOVERNMENT SPENDING, BOOSTING THE DEFENSE INDUSTRY. HOW WIDESPREAD IS THE RECOVERY IN GERMANY? HOW WOULD YOU CHARACTERIZE IT NOW? >> CLEARLY THE SIGNS ARE VISIBLE NOW. TALKING ABOUT WAITING TO SEE THE SIGNS. CLEARLY THERE IS THE EXPECTATION THAT THE GDP WILL GROW OVER A PERCENT THIS YEAR. WE ARE SLIGHTLY MORE BULLISH. ABOUT 1% THIS YEAR. IS INTERESTING IS CLEARLY THE DEFENSE AND INFRASTRUCTURE SECTOR IS SOMETHING WE WERE ALREADY SEEING SIGNS. WHAT WE’RE BEGINNING TO SEE IS I REMEMBER PICKUP IN MANUFACTURING. MY EXPECT A SAYING THAT THE FOURTH QUARTER AND 2027 WILL SEE MORE ACTIVITY PICKUP WHAT WE NEED IS NOT JUST STIMULUS-LED GROWTH. WE ALSO NEED PRIVATE SECTOR STIMULUS. THERE ARE THE SIGNS ARE QUITE EARLY THERE. WHAT WE ARE CLEARLY SEEING. YOU CAN SEE THAT IN THE RESULTS OF OUR CORPORATE BANK IS THE DEFENSE INFRASTRUCTURE. OLIVER: HOW VULNERABLE IS THAT TO AN ENERGY SHOCK? WE’RE GOING INTO THE WINTER. CONDITIONS HAVE BEEN REELIVELY MILD IN TERMS OF TEMPERATURE. HOW CONCERNED ARE YOU ABOUT THAT? >> THE ECONOMY, NOT ONLY THE GERMANY ECONOMY BUT THE WORLD ECONOMY SEEMS RESILIENT TO HIGHER ENERGY PRICES. WE HAVE HAD THAT DYNAMIC FOR A FEW MONTHS NOW. SO FAR I DON’T THINK WE HAVE SEEN THE LEVEL OF STRESS YOU ORDINARILY WOULD HAVE EXPECTED FIVE YEARS AGO. FRANKLY THE CONSUMER IS MORE RESOLUTE THIS TIME AROUND. OLIVER: THAT WAS DEUTSCHE BANK’S CHIEF FINANCIAL OFFICER SPEAKING TO ME EARLIER HERE IN FRANKFURT. COMING UP NEXT, WE’RE GOING TO KEEP IT ON THE BANKING THEME. STANDARD CHARTERED RAISES ITS OUTLOOK. WE’LL HAVE THEIR CEO, MANUS COSTELLO UP NEXT. THIS IS BLOOMBERG. ♪ OLIVER: WELCOME BACK TO BLOOMBERG "DAYBREAK: EUROPE." NOW STANDARD CHARTERED POSTED PROFIT THAT BEAT ANALYST ESTIMATES IN THE THIRD QUARTER AND RAISED ITS OUTLOOK FOR INCOME GROWTH AND RETURNS. WE’RE JOINED NOW BY THE CHIEF FINANCIAL OFFICER MANUS COSTELLO. WE SEE THE STOCK TRADING UP ALMOST 8.45%. GOOD MORNING. TAKE US THROUGH THIS QUARTER AND WHY WE WITH SAW SO MUCH STRENGTH UNEXPECTED STRENGTH FROM STANDARD CHARTERED. >> GOOD MORNING. WE’RE REALLY PLEASED WITH THE QUARTER WE DELIVERED. WE SHOWED INCOME UP 14% IN THE QUARTER. THE STORY FOR ME IS REALLY ABOUT THE BROAD BASED GROWTH WE HAVE SEEN IN THE TOP PHONE LINE THIS QUARTER. WE HAVE SEEN GOOD GROWTH IN OUR TRANSACTION AND BANKING AND MARKETS BUSINESS. OF COURSE OUR WEALTH BUSINESS CONTINUES TO DO EXTREMELY WELL WITH INCOME UP 26% YEAR OVER YEAR. WHAT WE HAVE BEEN ABLE TO DO IS MAKE SURE THAT STRENGTH IN THE TOP LINE IS MET WITH THE DISCIPLINE IN OUR COST PERFORMANCE AND IN OUR RISK METRICS. ALL OF THAT STRENGTH DROPS THROUGH TO THE BOTTOM LINE WHICH IS WHY WE’RE RAISING OUR RETURN ON RETURNS AND EQUITY GUIDANCE TODAY TO AROUND 14%. REALLY PLEASED WITH THAT BROAD-BASED PERFORMANCE. OLIVER: I WANT TO TAKE YOU FROM THE QUARTER BEHIND US TO THE QUARTER IN FRONT OF US, SO FAR IN THIS QUARTER, THE FOURTH QUARTER CLOSING OUT THE YEAR, ARE YOU SEEING THAT MOMENTUM CONTINUING AND WHAT GIVES YOU THE CONFIDENCE TO SAY YOU CAN RAISE THE OUTLOOK? >> I THINK BY RAISING THE OUTLOOK WE’RE OBVIOUSLY SIGNALING OUR CONFIDENCE IN THE BUSINESS, OUR CONFIDENCE IN FRANCHISE AND IN THE MOMENTUM THAT WE’RE DELIVERING. WE’RE HAPPY WITH THE START TO THE QUARTER. WE HAVE DONE WELL. OF COURSE MARKETS ARE VOLATILE. OF COURSE THERE ARE ALWAYS RISKS GOING FORWARD. BUT WE’RE HAPPY WITH WHAT WE HAVE SEEN SO FAR. I’M CONFIDENT THAT THE STRENGTH IN OUR FRANCHISE IS WHAT’S REALLY DRIVING US FORWARD. OLIVER: THINKING ALSO ABOUT WHAT WE HAVE SEEN FOR YOUR WEALTH MOUNT THE. YOU BROUGHT IN $20 BILLION. DO YOU SEE THAT CONTINUING THIS QUARTER OR IS THAT SOMETHING THIS KIND OF GROWTH THAT WE CAN CONTINUE TO BE SUSTAINED FOR STANDARD CHARTERED? >> IT WAS A REALLY GREAT QUARTER IN TERMS OF NET NEW MONEY IN THE THIRD QUARTER AND THAT CONTINUES A VERY STRONG RUN WE HAD THIS YEAR AND INDEED FOR THE LAST COUPLE OF YEARS. THIS IS REALLY A CONTINUATION OF THE MOMENTUM THAT WE HAVE SEEN FOR A WHILE. THE FOURTH QUARTER IS ALWAYS SEASONALLY A LITTLE BIT LOWER BUT WE ARE WELL ON TRACK TO HIT OUR $200 BILLION OF NET NEW MONEY TARGET WHICH HE SET OURSELVES AND OBVIOUSLY THIS YEAR LOOKS LIKE IT WILL BE A GOOD STEP IN TERMS OF PROGRESS TOWARD THAT TARGET. WE’RE VERY PLEASED THERE. OLIVER: I HOPE YOU CAN HELP ME SQUARE THING. LIVE TO MACRO OUTLOOK HAS SO MANY VULNERABILITIES TO SAY NOTHING TO HAVE WARS WE HAVE SEEN ACROSS THE WORLD AND OBVIOUSLY THIS AI TRADE SUPPORTING THINGS. WE’RE SEEING FROM BANKS THAT ARE IN MORE DIFFICULT MARKETS LIKE BNP OUTPERFORMING. CAN YOU SQUARE FOR US THE DIFFICULTIES WE’RE SEEING IN MACK LOW WITH THIS OUTPERFORMANCE IN THE BANKING SECTOR? >> WHAT YOU HAVE SEEN ACROSS THE SECTOR IN TERMS OF STANDARD CHARTERED IS RISK CONTROL OVER THE LAST SEVERAL YEARS. YES, THERE ARE SO MANY VULNERABILITIES IN THE MACRO SITUATION AND THERE IS A LOT OF DISCUSSION AROUND THE OUTLOOK. WHAT YOU SAW FROM US IN THIS QUARTER FOR EXAMPLE WAS REALLY QUITE A LOW LOAN LOSS RATE. JUST NINE BASIS POINTS TAKING OUR YEAR TO DATE SO FAR TO JUST 20 WENT INTOS. REALLY A DEGREE OF CONFIDENCE IN WHAT WE’RE SEEING IN OUR BALANCE SHEET AND POSSIBILITIES GOING FORWARD. I THINK IT IS REALLY THE RESULT OF A THE FACT THAT WE LIKE OTHERS HAVE HAD A STRONG FOLK US ON RISK CONTROL AND WE ARE CONFIDENT THAT WILL CONTINUE -- FOCUS ON RISK CONTROL. THAT SAID, OF COURSE MACRO IS ALWAYS IMPOSSIBLE TO TELL EXACTLY WHAT’LL HAPPEN. IT IS ALWAYS A RISK GOING FORWARD. WE’RE COMFORTABLE WITH OUR OUTLOOK. OLIVER: HOW DO YOU THINK ABOUT THE THE AI STORY? OBVIOUSLY THERE IS A LOT OF QUESTIONS HOW MUCH MONEY HAS BEEN POURED INTO THIS AND IF IT IS ALLOCATED IN RIGHT PLACES. HOW DO YOU SEE THAT STORY DEVELOPING AND DO YOU SEE THE POTENTIAL FOR A SHARP REVERSAL THREATENING THE MACRO OUTLOOK FURTHER? >> IT IS A RELATIVELY SMALL PORTION OF OUR BALANCE SHEET AT THE MOMENT. WE DON’T HAVE A HUGE EXPOSURE TO DATA CENTER OR THE AI TRADE MORE BROADLY. WE’RE NOT MASSIVELY EXPOSED. WHERE WE’RE SEEING GROWTH AND INVEST IS IN CERTAIN AREAS ACROSS ASIA, AFRICA AND THE MIDDLE EAST WHERE WE SEE CONTINUED GROWTH COMING THROUGH. I THINK WHAT YOU’RE SEEING IN MARKETS AT THE MOMENT A QUESTIONING OF WHAT THE OUTLOOK WILL BE AND UNDERSTANDING WHERE REVENUES ARE GOING TO COME FROM AND PEOPLE WILL CONTINUE TO RE-EVALUATE HOW THAT LOOKS AS THEY GET MORE RESULTS STAND THEY SEE MORE INFORMATION COMING THROUGH. FOR US, IT IS A PRETTY SMALL PIECE OF OUR BALANCE SHEET AT THE MOMENT. OLIVER: THINKING ABOUT THE BANKING SERVICE, SERVICING THE AI STORY BUT THERE IS ALSO A QUESTION OF THE AI STORY IS GOING TO WORK THROUGH THE BANKING INDUSTRY. IS THAT SOMETHING WE CAN EXPECT FROM STANDARD CHARTSERRED? >> WHAT YOU CAN SEE FROM US AND IN OUR RESULTS TODAY AND HOPEFULLY YOU’LL SEE IT GOING FORWARD AS WELL IS AI ALONG WITH OTHER TECHNOLOGIES IS HELPING US TO DRIVE BOTH OUR TOP LINE. WE’RE PUTTING AI TOOLS IN THE HANDS OF OUR RELATIONSHIP MANAGERS IN OUR WEALTH BUSINESS WHICH ENABLES THEM TO SERVER THE COMMERCE BETTER AND DRIVER BETTER OUTCOMES FOR THE COMMERCE AND FOR US. AND INVESTING INTO THE CORE OF OUR BANG BANK SO OUR PROCESSES BECOME MORE EFFICIENT SO WE CAN GET BETTER SCALING OPERATING LEVERAGE. OUR COST INCOME RASH TSO EXPECTED TO IMPROVE BY OVER 300 BASIS POINTS THIS YEAR. WE’RE FORECASTING ANOTHER OVER THE NEXT COUPLE OF YEARS. THAT IS ABOUT THE COMBINED EFFECT BOTH ON THE TOP LINED THE COST LINE OF MERGERS LEAK AI IMPROVING PRODUCTIVITY. OLIVER: MANUS COSTELLO, THE CEO OF STANDARD CHARTERED. JOINING US TODAY AFTER A PET HEAVY BEAT OF TRADING IN HONG KONG. COMING UP, EARNINGS BOOSTED BY HIGHER ENERGY PRICES. WE WILL SPEAK WITH THE CEO OFEFUINOR EARN. THIS IS BLOOMBERG. ♪ OLIVER: WELCOME BACK TO BLOOMBERG "DAYBREAK: EUROPE." EQUINOR HAS REPORTED PROFITS THAT BEAT ANALYST ESTIMATES AS THE CONFLICT IN THE MIDDLE EAST GROVE DROVE UP ENERGY PRICES. WE’RE JOINED NOW BY ANDERS OPEDAL. THE CEO OF EQUINOR AND JOINS US THIS MORNING TO TAKE US THROUGH NUMBERS THAT WE GOT FROM EQUINOR WHICH WERE STRONG AS ANTICIPATED. ANDERS, THANKS SO MUCH FOR JOINING US. YOU BEAT THE PROFIT ESTIMATES. TAKE US THROUGH QUARTERS WHAT WE SAW AT THIS MOMENT OF TIME WHEN THE OIL MARKET IS MOVING SO RADICALLY. >> YEAH. GOOD MORNING. YES, WE HAVE A RECORD OF VERY GOOD RESULTS. ADJUSTED OPERATING INCOME COMES IN AT $1.4 BILLION. AFTER TAX $.1 BILLION DOLLARS. THIS IS ON THE BACK OF THE INCREASED OIL AND GAS PRODUCTION. WE HAVE INCREASED PRODUCTION BY 2% COMPARED TO THE SAME QUARTER LAST YEAR. BUT OF COURSE THE MAIN DRIVER IS THE PRICE AND THE PRICE DRIVEN BY THE ESCALATIONS AND THE CONFLICT IN THE MIDDLE EAST WHICH IS AFFECTING BOTH THE CRUDE OIL PRICES AND THE GAS PRICES BUT ALSO JET FUEL GASOLINES AND DIESEL. OLIVER: ANDERS, THIS MAY NOT BE A FAIR QUESTION BUT HOW DO YOU BEGIN TO OUTLOOK THE ASSUMPTIONS YOU CAN MAKE ABOUT OIL AND GAS OVER THE NEXT 12 MONTHS? HOW DO YOU THINK ABOUT THAT PROBLEM? >> THAT IS VERY, VERY DIFFICULT. BASICALLY WHAT WE FOCUS ON IN OUR COMPANY IS TO MAKE SURE THAT WE ARE ABLE TO PRODUCE SAFE AND EFFICIENT ALL DAY, THAT WE ARE ABLE TO EXECUTE ON OUR PROJECT PORTFOLIO AND MAKING SURE THAT WE ARE ABLE TO DELIVER THE ENERGY THAT THE WORLD AND EUROPE NEEDS THESE DAYS, TRYING PREDICT THE FUTURE OIL AND GAS PRICES IS VERY, VERY DIFFICULT BECAUSE IT IS ALL DRIVEN BY GEO-POLITICAL EVENTS OUTSIDE OUR CONTROL. SO WE FOCUS ON WHAT WE CAN CONTROL ALL THE TIME, KEEPING PEOPLE SAFE, OUR ASSETS SAFE AND SECURE AND REALLY DELIVER ON THIS STRATEGY THAT REREPORTED AT THE CAPITAL MARKET DAY IN JUNE IN NEW YORK. WE HAVE GOOD PROGRESS ON THE STRATEGY. WE HAVE NEW EXPLORATION LICENSES. WE HAVE NEW DISCOVERIES. EXISTING PROJECTS. THAT IS REALLY WHAT WE FOCUS ON IN A VERY VOLLEY VOLATILE GEO-POLITICAL WORLD AS WE SEE IT NOW. OLIVER: YOU’RE NOT ABLE TO FORECAST THE EVENT IN POLITICS, WHETHER OR NOT THE WAR IN IRAN WILL RESTART. WE ARE SEEING SOME MOVEMENTS FROM THE U.S. MILITARY TO ADD ADDITIONAL FORCES THERE AND EXPECTATIONS THERE MIGHT BE MORE KINETIC ACTION AFTER THE MID-TERM ELECTIONS. IF WE WERE TO SEE MORE ACTION AFTER THE MID-TERM ELECTIONS, THIS IS NOT YOU FORECASTING WHO WERE THE IT WILL HAPPEN, BUT IF IT DOES HAPPEN WHAT’LL THE IMPACT BE ON THE OIL MARKET? >> WELL, WE SAW WHEN THE CONFLICT STARTED IN FEBRUARY THAT IT WAS A LOT OF SHOCKERS IN THE SYSTEM. A LOT OF OIL AVAILABLE. WE USED THE RESERVES, ETC. I THINK A LOT OF THOSE SHOCKS ARE NOT THERE ANYMORE. ANY FURTHER ESCALATION COULD HAVE LARGER IMPACT ON BOTH THE CRUDE PRICE BUT ALSO ON THE REFINED PRICE THAN WE HAVE SEEN PREVIOUSLY. SO THAT’S WHY IT IS IMPORTANT HOPEFULLY THERE WILL BE NO ESCALATION BECAUSE WE SEE NOW THAT THE BRENT IS STILL HIGHER THAN THE FORMER BRENT MEANING THERE IS A STRONG UNDERLYING DEMAND FOR THE PRODUCTS GOING FORWARD AND THAT COULD FURTHER ESCALATE IF WE SEE MORE ACTIONS IN THE MIDDLE EAST. OLIVER: I WANT TO ASK YOU ABOUT THE EUROPEAN GAS MARKET OBVIOUSLY GOING INTO THIS WINTER, WE KNEW LEVELS WERE LOW. HOW CONCERNED SHOULD WE BE IN EUROPE ABOUT THAT? YOU’LL KNOW BETTER THAN ALMOST ANYBODY ELSE. IF WE GET TEMPERATURES MOVING IN THE WRONG DIRECTION, WE COULD HAVE ANOTHER REAL GAS CRISIS IN EUROPE. >> YOU’RE ABSOLUTELY RIGHT. THE GAS STORAGE LEVEL AT THIS POINT IN TIME NOW IS 745%. THIS IS THE -- 75%. THIS IS THE LOWEST SINCE 2000 AT THIS POINT. OBVIOUSLY WE’RE ENTERING INTO THE WINTER SEASON MUCH MORE STRESSED THAN PREVIOUS WINTERS. WE PAY ATTENTION TO THREE POINTS WE’RE TRYING TO WATCH CAREFULLY TO BE ABLE TO UNDERSTAND WHAT’LL HAPPEN IN THE GAS MARKET DURING THE WINTER. FIRST IS ABOUT HOW MANY -- COME OUT OF THE STRAIT OF HORMUZ. EUROPE REALLY NEEDS LNG THAT CAN COME FROM U.S. OR QATAR. THE SECOND POINT IS WHAT WILL CHINA DO? WILL THEY INCREASE THE DEMAND FOR NATURAL GAS BECAUSE THAT WILL ALSO AFFECT THE COMPETITION BETWEEN EUROPE AND ASIA IN TERMS OF ENERGY AND THE THIRD POINT IS WHAT YOU ALLUDED TO, THE WEATHER. THE WEATHER IN ASIA AND EUROPE, IF WE HAVE A COLD WINTER, WE COULD BE IN A VERY CHALLENGING SITUATION AND PARTICULARLY IF OUR COLD SPELL COMES IN EUROPE BY THE END OF THE SEASON WHEN THE STORAGE LEVEL IS AT THEST, THAT COULD BE KIND OF QUITE DIFFICULT. WE DON’T ANTICIPATE THAT THERE WILL BE A LACK OF NATURAL GAS BUT WE ANTICIPATE SOME OF THESE ELEMENTS ARE MOVING IN THE DIRECTION OF KIND OF COULD INCREASE THE PRICES FOR NATURAL GAS. QUITE OF VOLATILE WINTER MIGHT COME UP FOR NATURAL GAS IN EUROPE. OLIVER: HOW ARE YOU THINKING ABOUT BUYBACKS AND RETURNING MONEY TO SHAREHOLDERS? THESE ASSUMPTIONS HAVE BEEN ELEVATED. DOES THAT CHANGE WHETHER OR NOT YOU WILL DO A BUYBACK? >> WE DOUBLED OUR SHARE BUYBACK IN 2026 WHEN WE ANNOUNCED IN JUNE THAT THIS YEAR AND THIS QUARTER, WE ARE DELIVERING ON THAT PROMISE SO WE WILL HAVE UP TO $3 BILLION IN SHARE BUYBACKS FOR 2026 AND WE ASKS SKETCHED OUR SHARE BUYBACK PROGRAM FOR 2027 AND ON WARDS AND WE WILL COME BACK TO THE SHARE BUYBACKS IN FEBRUARY. OLIVER: GREAT. THE CEO OF EQUINOR THERE ANDERS OBSERVE DAL THANK YOU FOR YOUR TIME. A VERY DIFFICULT MARKET TO PREDICT IN OIL. IT IS A HEAVY EARNINGS DAY. WE’LL TAKE YOU THROUGH NUMBERS WITH EXECUTIVES FROM UBS, B.N.P. PARIBAS, SANTANDER. WE’LL HEAR FROM STANDARD CHARTERED. STRONG DAY FOR BANKS OVERALL IN EUROPE. WE’LL HAVE THE OPENING TRADE NEXT. THIS IS BLOOMBERG. ♪