tom: good morning this is bloomberg daybreak: europe. these of the stories that set your agenda. ubs four quarter net loss trump is singh higher. there's buybacks of up to $1 billion this year. australia's central bank holds but doesn't rule out further hikes. treasuries pair losses after a two day route following a stronger u.s. services gauge while fed speeches for cold water on a march rate hike. chinese markets or mid promise of more support from beijing. president xi is set to be briefed on the countries stock ruptures. we will check in on these markets. the bloomberg indexes softer. we are seeing a rally that strong in mainland china. but also in hong kong as well. on the bought -- on the back of these additional measures coming through from policymakers, particularly the pledge of more

buying of etf's linked to chinese equities. a very solid session. the futures in europe pointing up on the back of a little bit of this relief. particularly softer dollar will be beneficial as well. we continue to monitor the data and look ahead to the earnings story. the ubs story is what we are packing in greater details. european futures with a gain of 4/10 of 1%. ftse 100 futures in the u.k. looking to add 21 points up for tenths of a percent. s&p futures after the modest losses pointing to gains of a 10th of a percent. nasdaq futures up by 35 points. expectations of a march cut has essentially been phased out by traders and expectations of may have also been dialed back. you have this but -- the fed speakers and the strong ism data coming in at a four month high. the prices component also picking up as well. just feeling into the narrative that markets have gone over in terms of the extent of cutting

christ in around the federal reserve. we continue to watch the cross as a board with the focus on oil. just recapping the moves in treasury markets because you did, over two days, see a significant tick up in yields across treasuries. two-year yields in terms of the two day move. the highest level we've seen in about a year. paring some of those losses in the session. oil continues to be in focus today as does iron ore purity saw prices softer on concerns around demand linked to china. the softness around the iron ore prices is paired somewhat in the session. let's recap the numbers coming from ubs. the announcement that they would be reviving the share buybacks that were on ice after the deal to take over credit suisse, aiming to close to a billion dollars, up to one billion u.s. dollars in 2022. coming through with additional

savings. net loss deeper than most of the extra minutes. the estimates expected the wealth part of the business. the prophets were well below the estimates of over one billion u.s. dollars. that's get more analysis and details on this major earnings print coming through from ubs as we think about the outlook for that bank and integration. bloomberg senior finance editor. thanks for joining us. your take on these numbers. there's a lot to unpack. as you mention, fourth-quarter net loss was slightly more than expected. the interesting bits for mere the share buybacks that you mention. this had been stopped in the deal with credit suisse, this will be good news for investors if they plan to start this again in the second half. as much is one billion. this is something investors are looking out for. also maintaining the

profitability target, which is another key point than analysts had been looking at. as you mentioned again, this cost-cutting target, they have increased this from 13 billion from 10 billion. it really is more ambitious and they had set out. so we will have to see how they try to achieve that. tom: what are we looking out for in terms of the update? the strategy update as the integration with credit suisse continues? >> i think the buyback was key. profitability, the chairman authorities said they are looking to beat that target, they are on track to do that. these are key numbers. assets were another interesting point, whether they were ready to take on any assets with this integration with credit suisse. it looks like they could take on $77 billion worth. good news again for the bank.

having said all that, they have said this will be one of the most difficult times for this integration with credit suisse. there will be more challenges ahead but so far they seem to be on track with it all. tom: thank you very much. bloomberg senior finance editor breaking down the details around those numbers. just the last 15, 20 minutes we will hear from the ceo of ubs. francine lacqua is at 7:00 a.m. london time. stay tuned for that. let's see how the asian markets are shaping up with aperal hong -- with avril hong. >> good morning, that is the focus because chinese authorities seem very determined to stem the bleed before we enter the dragon, they are pulling out all the stops. and that's something are mliv strategist mark cranfield calls

china's moment, whether is this sovereign fund pledging the buying of etf's or if they meet financial regulators would talk about the stock markets that is lighting a fire all -- under all the stock encz markets with small caps that was 8.1%, the highest climb on record. it has to be said given how frail the sentiment and how low positioning is, it's interesting how it is sending a stocks flying. let's take you to japan where the nikkei paired losses from earlier on in the day and this was in large part to what we got from the royals largest automaker. investors were cautious. stock was lower. its profit outlook, we saw a rev up and it helped the nikkei close not as low. let's take a look at the fx moves as well because the

positive news flow from china is fueling currencies. let's take you to the korean won , aussie dollar. it seems to have a tailwind effect from china. resell the aussie gaining ground as traders reprice the expectations around the expectations around rba rate cuts. tom: avril hong in singapore. on those rba decision, the australian central bank holding. let's bring in paul dobson on the back of that line. the rba not ruling out further tightening. you take what we have been hearing from the reserve bank of australia. >> i think the rba has been known to be neutral in the commentary. leaving the door open for more hikes in the statement, but when the governor -- governor came out, she came across more dovish.

the pricing for the cuts fluctuated in terms of the timing. market looking around august, september time for the rba to star lowering interest rates from where they are at the moment. it sounds like the central bank doesn't want everyone to get carried away with pricing. we see what happens in the u.s. and the whiplash that we could talk about some more in a minute as that unwinds. at the same time, switching towards that neutral great. i think it's interesting, everybody getting used to the new process that the rba is doing where holds a press conference, the statement, strategist have been putting out coming from their boards, they may have a slightly different nuance. the governor's getting her own views afterwards omar we are. maybe that explains slightly more and a hawkish position in that statement that gave the aussie dollar little but of strength at the start. maybe slightly dovish take on

that coming back out of the press conference. tom: interesting context. you gave a flick to the u.s. let's go there. we have been hearing from chicago's fed president. we are hearing from a number of fed speakers. he told bloomberg seen a -- bloomberg he needs to see more good data before any rate cuts. let's take a listen. >> it feels like the economy has been quite strong on the growth friend. you have big job numbers, big gdp numbers. at the same time we that inflation better than expected. if we keep getting more data like we have gotten, i believe we should be will be on the path to normalization. tom: go to be needs to see more data. we have the gauge coming out yesterday. that was stronger, four-month high. your take of what we've heard from the fed governors and combine that with the data.

>> not just the fed governors, but we can add in the ecb speakers, the boe speakers as well. everyone is saying not yet. we need more evidence before we decide and fit -- inflation has vanquished before we are confident enough to cut rates. yesterday we saw strong ism numbers. it was extremely strong held by the extra shipping cost we saw from what's going on in the red sea. that said that inflationary picture. think about last friday. the wages growth we saw. the idea that inflation is not cooling down completely. it has led to this allergic reaction in the bond market with everyone moving all at once, in terms of pricing any cuts from the fed to come later on in the year. maybe there's a more sensible equilibrium.

we don't have to worry about things until may. perhaps the market will settle down. tom: the allergic reaction in the bond market. thank you very much. ringing insights across the central-bank action this morning. we will look out, bp earnings, some :00 a.m. u.k. time. we have the numbers that came in with the beat last week. whether they follow suit, it will be interesting given the changes at the top of the u.k. listed oil. those earnings coming out 7:00 a.m.. when it comes to the german economy, it was a focus on the lack of resilience in europe's largest economy. we will get factory orders at 7:00 a.m. u.k. time. that will be an interesting gauge in terms of the ability for china's -- germany's factories. continuing to churn out products and whether there is demand coming. talking about the fed officials

and fed speak this week. the fed will be speaking on the economic outlook at 5:00 p.m. u.k. time. it underscores what we hear at bostick and others will be interesting as well. you can get a round up of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers can go to dayb . lawmakers agreed to a 10 delay to the presidential election. we will have that story. plus, nvidia reporting in about 20 minutes, we get a better sense of how the chip demand stock may be impacting the broader sector with a particular focus on exposure to automakers for nvidia. more on that, next. this is bloomberg. ♪

tom: from qatar later today on this for the middle east trip cynthia tober attacks. he talked with the crown prince in saudi arabia on monday. let's get more details and bring in bloomberg's -- what do we know about the meeting? >> the meeting was for the region since the war began. main priority -- one of the main priorities for the visit is to push for a deal between hamas and israel or an extended decision of the return for holding hostages. that deal would usher in more humanitarian aid into the gaza

strip. that's the main thing think and will be pushing for a he moves on to his office trip in doha before he moves to tel aviv to talk with israeli officials. tom: how was lincoln's message expected to be received in the region? >> on the one hand, this deal between israel and hamas, no one in the region expects this to be a trip that brings about a breakthrough in talks that results in a deal between the palestinian group and israel. on the other hand, there's an equally important message that blinken is probably coming to the region with, that the u.s. is in a very delicate position. on the one hand, he perceives to be a need to punish iran backed groups in the region or attacking commercial ships in

the one hand. on the other hand, the u.s. does not want the conflict that could spin out of control and turned into a wider regional war. those are two competing interests that the u.s. is a looking at and bouncing against each other. and during his tour to the middle east, it will be very receptive to u.s. messaging because the repercussions of any u.s. action will be huge for the region. tom: that was on the latest business -- the latest visit by entity blinken. let's turn to political tensions now in senegal. lawmakers have passed a bill to extend the president's 10 year and delay elections by 10 months. for more we are joined by bloomberg's correspondent. when impact is this political uncertainty have for senegal and investors in that country?

>> we are elected to see height and political tension in the country. this is the first time that elections have been postponed in senegal, which is one of the most stable democracies in west africa. by pushing elections by 10 months, this is not going to sit well with the public. when the president first made the announcement, we sell public uproar and there were clashes between protesters and the police with some being whisked away by the police saying this is a threat to democracy and a breach of constitutional order. we have seen the government cut internet access saying that hate is being spewed online and that is disturbing public order. but critics say that the government is trying to curtail communication. everything happening in senegal will test the social fabric of that country. the question is, will it hold until the 15th of december? tom: what about the market reaction to this news?

>> we have seen eurobonds fall sharply. the eurobond do in 2033 fell by 6.3 percent. that's due in 2037 fell by 4.6 percent. the irony of this is senegal's boards have been performing better than their sub-saharan peers. this was in anticipation of a transition in positive for the trajectory. that tide is beginning to turn. investors are going to likely ask for higher premium of investing in senegal due to uncertainty in high risk and they are saying fiscal consolidation will be a challenge because this uncertainty procrastinates a time to which energy subsidies were supposed to be phased out, which was supposed to happen by 2025. tom: that was the politics and uncertainty in senegal. thank you. let's bring you more of the stories that are in focus for us on the bloomberg terminal this tuesday morning.

donald trump and heise republican leaders have slammed a bipartisan senate deal to impose new u.s. border restrictions and unlock the lands of dollars in ukraine a. the former president used a social media case -- poster call it a death wish for the republican party speaker mike johnson set the senate compromise was dead on arrival. the dealer cost down on illegal border crossings include $60 billion for ukraine. britain's king charles is receiving treatment for an unspecified form of cancer. and you health care for the royal family less than 18 months since the death of queen elizabeth. the cancer was discovered during the king's recent treatment for a prostate condition. buckingham palace says he suspended duties but will continue business and paperwork. the indian gold rush while investors see the south asian nation is the leading emerging-market taking over from china. we bring you our big date.

that is next. this is bloomberg. ♪

tom: happy tuesday, it wasn't so long ago that smart money was invested in china. the world's biggest growth story for decades. with the chinese economy faltering, investors are turning their focus to what's happening in india. that pivot is the subject of today's big take. good morning. why is global money looking at india as an alternative? what are the attractions in the indian market putting in fund flows for wall street and beyond? >> good morning, thank you for having me. as global money is getting pulled out of china, what we are

witnessing over the past year and a half is a lot of the funds are being directed to india. india is favorably emerging as an alternative investing destination. it's not just a flavor of the season. wall street banks are taking a longer call on india and the india growth story have said that india is next preferred investment for the next decade. what we are witnessing is an amalgamation of factors on the investment side. we are seeing india stock markets, which have -- briefly, the fourth largest in the world. there may have seen the growth of payments interface system in india. supply chain alternative that india's china position itself as against china in one alternative to global supply chain.

the kind of investments that have gone into infrastructure, the past decade or so. all that is in the india investment team and for india investment banks. given that china is facing economic problems in india with a strong domestic driven economy. investors are looking as india as a long-term alternative. tom: how are those global funds positioning to take advantage of the upside that you outline for us? >> what we are seeing from the numbers is pretty interesting. the india -- the biggest india focus traded fund, the biggest flow last quarter, at the same time, the china focus on outflow of $800 million.

we are also seeing japanese retail investors who invest in japan and in the u.s. and outside of japan and china, u.s. and china are flocking to india in a big way. moreover on the fixed income side we are seeing now that j.p. morgan has added india to its global market bond index, starting june we see big passive inflows up to $25 billion, flowing just on account of that. all in all, we see big global money coming in at the moment, which is a sweet spot for india at the moment. tom: any potential pitfalls or downsides all of this. >> one thing india has always faltered on is we have had situations where the government has introduced taxation changes, which have global corporation

stripped up. one thing is tax protect ability. there have been some criticism and global investor circles on the political situation given that we -- given that the government is a bit of a majority. that has been kept in mind because this is democratic to china in a democracy of economy, one of the world's largest democracies in the largest population. tom: thank you very much on a cruci

tom: good morning, this is

bloomberg daybreak: europe, i'm tom mackenzie in london. these are the stories is that your agenda. ubs fourth-quarter net loss comes in higher than expected. the swiss lender will resume buybacks of up to $1 billion this year. australia's central bank holds but does not call out further hikes. treasuries pair losses after a two day route falling a stronger u.s. services gauge while the fed speakers pour cold water on a march rate cut. chinese markets or amid promise of more support from beijing. president xi is set to be debriefed on the stock ruptures. it is another big greek -- big week for earnings. first quarter revenue coming through for the german listed chipmaker with a big focus on supplies to the auto sector. let's start with for your revenue coming in at 15.5 billion to 16.5 billion. this is what they expect to see.

four-year revenues coming in. the estimate had been for around 60.8 billion euros. four-year revenues up between 15.5 billion euros to 16.5 billion euros. the top end is slightly below the estimates. on the quarterly basis, first quarter revenues coming in slightly below the estimates, 3.7 billion euros. the estimates have a 3.8 billion euros. we will break down the segments for you. second quarter revenue coming in below estimates. little bit bleaker in terms of the second quarter revenue seen at 3.6 billion. the estimates were for 4.0. let's go to oliver crook, bring these numbers for us and give us a deep dive into the story. your first take on this earnings coming through. >> you are kind enough to do the heavy lifting of the top. something jumping out as i'm

looking for the second quarter. this is a company not in sync with quarterly earnings. the second quarter is the projection. but we just got was the first quarter. second quarter is the margin. 18%. the estimate for the second quarter margin was supposed to be 23.1%. that is well below what estimates are for the margin. the question was, will it fall prey to the same thing we saw for other chipmakers. that's where we have seen the slowdown. there is huge demand for chips, ai, the highly sophisticated stuff. what the question was is, are they hedging because of the automotive sector. 50% of the revenue is for automotive. when you look into the second quarter, you look at this margin, this is not a particularly good omen. perhaps it will add to the misery and results we've seen from the chipmakers recently.

tom: that is the redhead across the terminal. 23.1% versus second quarter forecasts of margins of 18%. the margin squeezes their as you outline for us. there was also an expectation that maybe they would be hit by effects effects with the euro. we will see if that data comes out for us as well. talk about the autos demand. some analysts, in the notes that i read suggested that maybe that auto strength would provide something of a buffer. it seems like for now it's not there. we have more details on that. they supply the likes of vw, as you know, alongside continental and byd and china. also the likes of samsung and apple going forward how important do you think the autos component will be? >> it's critical because there's no way around the fact that it's 50% of the revenue. there's two things i think will be interesting. the first is how is the auto sector overall doing?

we had this bernstein coming out with their outlook for 2024 saying the auto sector, in some way, this has nothing to do with ev's, the auto sector has been in a goldilocks phase where there has been constraints apply for the chips and all these things. there have been loaded order books that they have walked through. so when you are done with that for 2024. but there's a second question, which is electric vehicles. if we see a massive slowdown in electric vehicles, they use twice or three times as many chips as ice's, does this become, at some point, and the projections, a major story for chipmakers that are having a larger volume of chips for the eb transition? tom: the slowing growth of ev's. the stock at the last 12 months down around 3%. we watch the reaction at 8:00 a.m. u.k. time. thank you with the context around those nvidia results. the redhead, that margin

squeeze. the estimates had been for 23.1%. let's check in on the markets as we count down our to half away from the european futures pointing the gains of four tens a percent. watching ubs on the up to one plan dollars of buybacks in 2024. ftse 100 futures pointing up the 7006 hundred level looking against of 3/10 of a percent. s&p futures are flat. nasdaq pointing to gains. you have the ism services gauge coming in at a four-month high. yet the prices component coming in higher-than-expected. markets readjusting and essentially rolling out predictions for a march cut. let's flip the board and look across asset because there has been a lot of scrutiny around what's happening across the treasury curve. a bit of a losses being paired. of course you see justin the

last previous two days, the biggest tick up for a year. currently at 442. euro-dollar at 107, of close to a 10th of a percent. brent is seeking out gains. iron ore is counting down a little over 1%. 124 per ton. back to ubs. the group will resume share buybacks found to have as $1 billion back to shareholders as it moves beyond the integration of credit suisse. let's bring in our editor from bloomberg senior finance for a top take on these earnings. what is your assessment, 35 minutes, 45 minutes since the earnings dropped? >> we are just unpacking the numbers here. fourth quarter and loss was slightly higher than expected, but not too out of line. investors have been really

looking out for this. they were start doing it -- they will start doing it in the second half up to $1 billion. this has been halted during the integration of credit suisse. ready to restart this plan. a couple of other interesting things, cost savings, which is another thing that investors look out for. they are now going to increase these cost savings to $13 billion. that's the plan up from $10 billion previously. it's quite an ambitious target. it will be interesting to see how they plan to do this. they are looking to add trillion dollars worth of wealth assets by 2028. again, another ambitious target. the numbers are coming in and getting a better picture of what the plans are over the next few years. tom: that's a huge number. the ambition is certainly there. thus the top line coming through

for ubs. i know you are looking ahead to earnings. what we you be watching out for? >> the french banks report on thursday. we had already some news this week. yesterday there was news that they are cutting 900 new jobs at the headquarters. this is part of a cost-cutting plan capital strengthening. this is the story we have been talking about so much at this job cuts that are affecting u.s. banks, european banks, we've seen deutsche bank. we've had city. this is all against the backdrop of these interest rate hikes in this glut of dealmaking that has really been slowing down thanks for a couple of years. that's on the soft jen front. on the credit agricole front, again we look at the international retail banking operation to see whether they can offset downturn of what's

expected in the french retail bank operations. we will be looking for their outlook for the year because the outlook for the french economy isn't so great at the moment. we will be looking for guidance on how this could affect the bank. tom: bloomberg senior finance editor with a preview of those french lenders on the top line analysis coming through from the earnings on ubs, we are going to hear from the ubs chief executive. that conversation with bloomberg's francine lacqua will air at 7:00 a.m. london time. stay tuned for that in a little under 20 minutes or so. treasuries are headed for their biggest today lawson months. they had the biggest today lawson months. that has now ended because you see money flowing in for the two-year making up for some but not all losses. reinforcing the message of the fed chair interest rate cuts are likely to begin before may.

validation to what has been said over the past few weeks on this topic, you said the treasury markets, the bond markets were -- and the repricing what happened where it -- happen at the front end. how much to the selloff and treasuries continue? >> good morning. we are somewhere in the middle of the selloff. midway through the selloff. i think that the two-year yield will top out around 456. i think that is the level indicated by the model, and that model has proved pressing. i think 456 is where it'll stop out. i'm a lot more constructive on the long end, 10 year and thirty-year. they are trading at a discounted fare value because of the fed trajectory market repricing. i do think it's a lot more

constructive. it is good to be constructive on duration going forward. whether we get a cut in may or probably in june, i think that trajectory is headed lower. that means the duration will be well served in the coming months. tom: really interesting. constructive on duration. two-year of 442 in the view is different when it comes to the front end, as you articulated. you expect yields higher to 456 on the two-year period what is your take on this debate. the fed speakers talking about the new neutral rate. disappoint to elevate interest rates? what is your take on this? >> i think appoints a relative -- elevated interest rates. at the start of the year the markets repricing 6, 7 cuts from the fed. it's clear that that's not going to happen barring an economic catastrophe. i think that the markets are trying to get their arms around the real neutral rate.

if you look at the shift in productivity caused by ai, i think that points to a higher neutral way -- neutral rate. i think the fed knows the real neutral rate is higher after the pandemic. estimates range between 100 and 150 basis points. my own inkling is around 100 basis points, the fed's funds rate will be higher than the markets were expecting. which is the pricing we are seeing at the moment. tom: there's a view that there's further to go on the front end, but constructive on the long end. fantastic analysis coming through. we get an insight into the tech talent being attracted to the u.k. and whether it is

positioning us for that kind of ambition. stay with us. this is bloomberg. ♪

tom: welcome back, happy tuesday. let's have a focus on what's happening in the tech sector. widespread cuts -- they are continuing in 2024. if so far according to layouts. the latest announcement on monday that 10% of its workforce is being cut. that's 450 -- 540 job period amazon, meta, google and salesforce are downsizing with higher interest rates and the proliferation of ai being blamed. the government wants to be a

global tech superpower in the u.k. by 2030. part of their strategy involves attracting the best on the brightest. we are joined by the chief executive of founders foreign group which required tech nation last year and bloomberg's lizzy burden, our u.k. correspondent joining us for the conversation. welcome both to the studio. thank you very much for coming in. let's start with where the focus is. where's the need for talent. what do you see in terms of the gaps that need to be filled on where that talent is going? >> the whole technology sector. there is no doubt that there is a skills shortage. we are seeing a focus around app and development. also now an explosion of ai on the growth within that sector. for sure, more data analysts to -- more data analytics. >> we don't have as many unicorns in the u.k. as well as in the u.s. how much of a factor is immigration in that? >> there is no doubt that we need to continue to attract

talent from overseas. i think we are in a phenomenal position. we operate the endorsement scheme for the global talent visa. we've seen an explosion and that grows. there has been over 5000 applicants in that time. but over the last year or so that has really exploded. the interest in the u.k., the appeal on the attraction of the u.k. is still absolutely at the forefront of what we are hearing time and again that this is a place to come, a place to build, a business being open with access to capital. also a quite forward thinking economy in terms of research, technology development. you can never be complacent, but we very much maintain that position. tom: some might take the view that, given brexit, given political uncertainty that we have seen in recent years, and frankly, a stagnating economy, that may not be as much as a draw. >> we are not seen the

correlation of that into the applications with the global talent visa. 30 pursuit -- 32% of applicants are from across europe. we have 21 billion pounds worth of investment into the u.k. last year. that's more than france or germany combined. over 64% of that was foreign investment from vc's. the companies of sequoia, they have all chosen the u.k. to be their european hubs. we are not seeing that abating in any shape or form. lizzie: it seems the tech talent is heading to london and mostar men. is that a problem? is there something to be done about that? >> or's always work to be done. the metrics we are seeing are indicative and mirror the tech industry in general around 70% male, 25% female. in terms of what's going on with a lot of investment coming into london, yes, that focuses probably on software, finance and ai. but there are a lot of tech

innovation hubs now coming across the u.k. there is bristol, cambridge being strong for hardware. semiconductors for glasgow, gaming. we have a commitment across the nation that 50% of companies coming into our cohorts from outside of london. we have to continue the work so we are seeing real clusters of innovation happening outside of london. tom: that 75% to 20% is shocking. this isn't unique to the u.k. or unique to us, this is a problem within tech. would you ever lobby to change the system to encourage and make it easier for female applicants or adjustments to change that imbalance? >> this is not just around helping to endorse a visa to put forward for the actual visa with a home office and partnership. we do a lot around community

engagement and education, and pieces like using our global network to encourage what these founders and skilled employees can do when they come into the u.k. half of our visa alumni are in a slack channel and a group network. it is around the engagement, the services we provide. that is really a big focus area for us. it is to help educate and give more support and access. there are lots of groups that do support and we need to keep shining a spotlight and keep working. tom: unfortunately, we have run out of time. thank you for joining us to walk through what is needed to attracting the talent to drive the ambitions of the u.k. when it comes to technology. chief investment of founders form group. lizzy burden, our u.k. correspondent. plenty more coming up. this is bloomberg.

tom: welcome back to bloomberg daybreak. happy tuesday. the focus when it comes to learning story is ubs. we speak to the ceo and the next few minutes. in terms of the context, look at the chart. according to these metrics, it is looking more american than european. the price-to-book is in line with u.s. banks. don't forget, this is now a lender that's targeting up to 5 trillion dollars of assets by 2028. a couple of lines crossing in terms of the earnings. the share buyback and force -- and focus with cost-saving pretty remarkable for this bank. this is a story we continue to unpack across markets today. that's coming up next. this is bloomberg. ♪

>> good morning from london, this is bloomberg markets today. i'm anna edwards alongside guy johnson. cash trade is less than hour away. ubs says it will resume share buybacks, vowing to have as much

is $1 billion to shareholders in the second half. we will hear shortly from the ceo. nvidia reports revenue for the first quarter that missed estimates. we will bring you bps numbers shortly as earnings seasons continue. u.s. treasuries pair losses after a two day route following a stronger services gain after the united states. while fed speakers for cold water on a march rate cut. kriti: quick check on the markets, we are seeing a bid for futures and bond markets. euro stoxx 50 futures higher period similar margin for the ftse 100. even the bond market is down three basis points this morning. euro-dollar, 107 off the back of that. markets today starts right now. guy: good morning, everybody. welcome to the show after a few

days when we have seen macro dominating. today i think we will focus on single -- single stock names. ubs stands out. we will get bp. nvidia looks like it has missed slightly. ubs is the big story. takeaway looks like no surprises. that's what management has been looking for. they don't want to surprise the market. the cost savings look sensational. the number that has been flagged to me, the r.o.e. targets, higher at 18% then preacquisition. that is a very strong number. i am not going to use the word sensational, but we may be close to it. anna: i heard you got in trouble for overuse of that word yesterday. kriti: i heard it was seven or eight times. it's 100%, that's the number. it's also the $1 billion buyback. it's only 20% of the buyback program they had. that's what we are seeing throughout all of the banks. anna: if you look at that, as we do as an expression of confidence in the future, that is telling you something.

on a day where we got some numbers coming in far away from what was estimated. it's a time to focus on forward-looking. so many integration costs. the wealth management business guy: absolutely. they are also talking about a pickup in the eye bank which speaks to deal flow picking up which is something we've seen overnight. so, fascinating to see what is happening here. this is a bank that feels like it is on track to start delivering big numbers. anna: big integration underway. the focus is on how the business is dealing with that integration. francine lacqua spoke to sergio ermotti about whether he is pleased with today. >> i'm very pleased we finished the year with very strong momentum. we achieved a strong underlying profitability for the second quarter -- for the fourth quarter. we saw