manus: good morning. i am manus cranny for "bloomberg daybreak: europe" in zurich. santander says it is on track to significantly outperform its 2021 goals. earnings season continues. deutsche bank set to hit the tape. mixed results for big tech. cloud computing drives growth.

it is u.k. by today. investors are on the lookout for any comments on energy prices, business rates, and the banking surcharge. let's just get you a little bit of breaking news. to deutsche bank, this is the beat we have been waiting for. let me bring you this net revenue, $6.04 billion, a strong beat. $5.79 billion was the headline. fixed income commodities, this is where the strength of tdk comes to the fore, $1.59 billion. will that be enough to embolden the optimistic view? here is the big piece of the chessboard. the credit loss provisions, not 117 million dollars, dramatically lower than last year -- at $117 million, dramatically lower than last year. it has been part of the narrative.

credit losses coming down at 117 million dollars, more than 50% lower from where we were last year. pretax profits are very comfortable. they are confident of achieving their 2022 targets. third quarter, as they say. net revenue, 6.04 billion dollars, very comfortable. fic sales and trading is a beat. ubs is equities house. deutsche bank is rates house. in terms of comparison to the u.s., that is what the market is going to be doing. the u.s. banks were driven by advisory. let's keep that in mind. a few other stocks which are doing, let me bring you some of the news flow from dws. we will catch up with the deutsche bank ceo a little bit later on. to dws, net inflows of $12 billion. the market was looking for $7.46 billion. you see a monster flow but we know that anyway from the bank

of america, bank of america's flow results that they give us on a weekly basis. net revenue for the third quarter. revenue comes in at 644 from ahead of the estimates of 627. that is the top line from dws. very comfortable beat on the inflows. that is the critical point. let me take you to another start which was just reported in ecuador. they have reported their net for the third quarter. the norwegian energy company says it plans to increase the share buyback to $1 billion. good news all around if you are a shareholder. my guest is the ceo. always good to have you with me. strong results. buyback and dividends aplenty for everyone. just the strength you are seeing at the moment, is that driven mainly by the ratchet in gas prices?

is that what took it up and over the line for you? good morning. anders: good morning to you. we are presenting our strongest results in 2012 this quarter and this is driven by both strong operational performance but also driven by the commodity prices. as you mentioned, the gas prices in the quarter have risen by -- they have risen quite sharply and that is contribute into our results. manus: on that, how much higher do you see these gas prices going? let's start there. we squeeze across europe. how much higher can we go? will this price i can door -- hike indoor? -- will this price hike endure? anders: if we have a very mild winter, we might balance this at the end of the winter but if we are entering into a normal winter or cold winter, we do see that there will be continued high prices but the level is

very difficult because we are seeing the gas prices are very volatile every day but we think with a normal winter, cold winter, gas prices will remain high. we have also seen that for this quarter. it has enabled us to provide strong cash flow. 9.3 billion u.s. dollars in cash flow of the tax and also the share buyback program. manus: that will be good news. let's just get a comment from you. larry fink sees $100 oil. do you expect to see $100 oil, and if so, when? anders: the demand for oil is coming back to the 2019 levels, pre-pandemic, so there is definitely a very strong demand

for oil. we are seeing actually some gas to oil switching due to the high gas prices and that is kind of putting extra demand to the oil so we see that there is very little spare capacity in the system at the moment. strong fundamentals for high oil prices going forward. of course, we will see a volatile market. covid-19 and the new delta virus is moving around the world. more regional effects of that. there are some uncertainties but generally, we think the oil price will stay at the high level. manus: will you see $100 oil anders: i don't want to bet on the oil price. my focus is really to make sure that we are running the company the best possible way. we are focusing on production

efficiency, keeping production high, and capture the prices. manus: anders, you have to go with me. i have to try. let's talk. you see a lot of switching going from oil into gas. are you at full production capacity in gas? anders: for the fourth quarter, we will most likely see a little bit higher production. we have had increased production license from the norwegian government on two of our fields. these are our fields where we can have spare capacity so the license is higher now. and we started back from october 1. another field where we use to inject gas to produce more oil. we are starting to export that gas and that will increase the gas production even further so

we can be a reliable provider of gas for the european and u.k. market when we see high gas prices. manus: just give the market a sense of percentage. spare capacity and the two fields. what would that give me in terms of additional gas capacity that you have got right now? anders: on a yearly basis, that would give two big meters extra. that is a couple of percentage. we will try to provide europe with even more gas in the next quarter. manus: your business is critically important for parts, components, maintenance. tell the market if you are suffering from supply-chain outages that could constrain you in any way. have you been constrained by supply chain? anders: at the moment, we are

not constrained by the supply chain but we pay a lot of attention to it. that is why we work closely with our suppliers. we have the most long-term contracts in place, in our renewables but also in our oil and gas portfolio. but what we see is talent is coming back. there will be a lot of need for new, competent people coming into both the oil and gas business and renewables business and there is a lack of people at the moment in certain places of the supply chain we might see some of facts -- effects of that nature but not during this quarter. manus: let's cover up two things. are you having to raise wages in the war for talent? anders: we pay quite a lot of

attention to it. that is why we put a lot of focus on working long-term with our suppliers because it's not only about the wages. it is also about how stays within our limits. manus: your opinion on whether the opening and flow for nord stream 2 would materially cap gas prices. would it materially impact the market dislocation? anders: that is one of the uncertainties we received from the nord stream 2 and of course, that has been the impact of the crisis. as far as we have seen so far, we have not seen much more gas coming from russia. i cannot expect those volumes

coming from russia and the nord stream 2 and when it will be opening up. manus: ok. anders, thank you very much. great conversation. we wish you well. that's see what happens to the gas markets in due course. the ceo at ecuador -- equinor. santander says it is on track to significant outperform 2021's goals. plus, we will be talking earnings with the ceo. he joins the bloomberg team. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny. we had to spain and santander's third-quarter results are in.

the spanish bank on track to significantly outperform 2021 goals. jose is the cfo of vanke is and then there. --banko santander. how or where is going to be the biggest contributor to the significant profitability this year? good morning. >> good morning. a pleasure to be here again. the reasons we had for the great outperformance we had in the first nine months of the year is that we are growing very fast a number of customers. we already have 152 million customers. 5 million more than a year ago. the second is interest activity. we are seeing more economic activity in every country where we operate. so loans are growing up or percent. and the -- asset management is growing 17%. the third is the interest in digitalization it already 4% of our sales are conducted

digitally and our payments company is growing at 40% so the combination of these three elements shows in the numbers. a return of 12.6% in the first nine months of the year, like you said, clearly outperforming our targets for the whole year. manus: where were the -- where will the strongest loan growth be? where is the strongest demand? jose: we are seeing very strong demand everywhere, more from individuals than from companies. so latin america is growing double-digit spirit santander consumer u.s. is growing at double digits but also mortgages and the u.k., for instance, which is showing the highest growth in many, many years, so i think it is quite a widespread growth. more concentrated on individuals than sme's. manus: as we go into 2022, it is

interesting you talk about the growth in the u.k. i will get to that in a moment. let's talk about rate hikes. at the moment, the market is pricing and across u.k., brazil, usa, rate hikes of between 100 for the -- 160 basis points. is it a bigger reward for santander on a hiking cycle versus the risk may be to demand? jose: we are a retail bank so we are naturally positioned for higher rate. right now, just to give an idea, a move of 100 basis points of the interest rate curve would give us around 1.7 billion euros more revenue, so it would be very positive for us. manus: i caught up with you and stevenson at hsbc. he thought it was three hikes in the pipe for the u.k. next year. let's start there. what do you think we will get from the bank of england over the next 12 months in hikes?

jose: the market is pricing one or two moves this year and then going to around 1% by the end of next year. that is what we have in our numbers as well. manus: could that knock the mortgage demand significantly in the u.k.? jose: we are starting from very low levels and inflation is clearly higher than short-term rates are going to be by the end of next year so we still think that mortgage demand will remain fairly robust. manus: manus: -- manus: and you manus: so you have seen strengthen the u.k. scope that out from your little bit more. jose: mortgages are growing quite a lot, for the first time, individuals are growing much faster than sme's and companies and we are transforming our operations in the u.k. quite profoundly. we earned a return on tangible

equity in the u.k. in the first nine months of the year with an income approaching 50% so i think we are taking advantage of the fact that customers want more digital relationships, thus helping in terms of efficiency and asset letting remains at all-time lows so the combination of revenues, vitalized nation, and very good asset policies, explains these very good results. manus: to the deals, obviously, inside of the business, you did the point deal. are you looking for anymore opportunities in brokerages, investment tanking, or retail in the u.s.? jose: as i said, we have 150 2 million customers, growing to 5 million a year. we have a lot to work with internally. having said that, we will always look or acquisitions to complement our businesses but there is nothing that we are

working on right now so in any case, our main objective is to continue growing organically in the countries we operate. manus: as you look into 2022, we have got supply chain inflation risk, energy prices rising, and rate volatility. when you look at those three big pillars of risk, what are you most concerned about? jose: we are in the business of managing risks so we have that factored into our systems, in our numbers. i think the biggest things we will face is the pandemic. many countries, the vaccination rates are growing slowly. and the pandemic is far from being beaten so that is the biggest risk. the combination of rates, higher inflation temporarily, growth

next year compared to this year. that is all part of our business. manus: it is refreshing to have a cfo, on and remind us that covid is still a very, very real risk to brazil, which has obviously been, like every other country in the world, ravaged, but it is an important part of your business. what can you give the market guidance on business in brazil? what has been the strongest performance and what do you expect for 2022? jose: brazil has been growing very fast. double-digit growth. it will move into 2022. remember that banking penetration in brazil is still around 50% so it is true that the economy might slow down a bit in 2022, but banking penetration will continue to increase significantly. rates are up. margins in the medium-term and

from the u.k., we don't think that will translate into significant asset quality problems so we think brazil will still produce a good set of numbers in 2022. manus: reassuring words. coming off a low basis in the u.k. the cfo, jose garcia cantera, the cfo of --alphabet, microsofr reported earnings after the bell yesterday. we delved into figures. -- we will delve into figures. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny in zurich for

daybreak europe. i want to give you a quick snapshot of what is going on and markets. two words that strike fear and loathing into the sentiment. inflation in australia -- three words. and china. china telecom being banned from the united states of america. china and inflation. i want to hone in on the move as we see inflation above the rbi's target for the first time. that is breaking higher and that has dislocated risk sentiment. the aussie dollar trades higher. the yield's spike. what will be rba do? they have to defend their line in the sand on their three-year paper so you are just seeing this pretty strong move across the gmm and that is having a bit of a risk impact for equities. chinese equities are lower this morning. likewise with the rest of the asian markets. a little bit lower. let's get to the aussie. juliette saly is in singapore

with your first witness. "bloomberg daybreak: europe -- juliette: a panel of u.s. experts say the benefits of a covid-19 vaccine for young children exceeds its risks. the advisory committee voted 17-0 with one abstention to back the pfizer biontech jab for children between five years old and 11 years old. it sets the stage for a likely u.s. authorization in the coming days. three key u.s. senators have released legislation that would require companies reporting more than $1 billion in profits to pay a minimum 15% tax rate even if they qualify for lots of tax breaks. the proposals say the plan would raise $300 million to $400 billion over 10 years and it would, as an alternative to increasing the regular corporate income tax from 21%. the queen will not her majesty

has regretfully decided that she will no longer travel to glasgow for the start of the talks. she will send a video message instead. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am juliette saly. this is bloomberg. manus. manus: thank. juliette saly in singapore. but tech titans have reported alphabet, microsoft, and twitter all hit the slate after the bell last night. laura wright joins me with the details. let's focus in on alphabet. first of all, the stock fell post market trading. where was the disappointing part of this? laura: the disappointing part was the cloud business which came in below analyst expectations. the unit continued to be lossmaking. on the call, the ceo said he sees continue to momentum but the real darling for alphabet was the advertising business and you can see here

the advertising growth for alphabet, how it has continued quarter on quarter, coming in at $53 billion. manus: and the take away from microsoft and twitter. microsoft, it's going to be on those recurring fees but twitter, i hear you are building a bit of market audience. laura: microsoft, it was really incredible. this is the 17th consecutive quarter of double-digit growth. you can see this threshold here. 22% year on year and this is primarily due to the cloud business. microsoft, as you are tying up a lot of deals. if we flipped aboard and take a look at twitter, that is all about daily average users. how they can be monetized. that fell in line with the analyst expectations at 211 million users for the third quarter and those privacy changes which impacted facebook's revenue yesterday, they were negligible for

twitter, manus. manus: laura, thank you very much. laura wright with the very latest on big tech. coming up on the show, we will speak to a ceo of a mining giant on the third quarter results come on the ground in riyadh. this is bloomberg.

manus: good morning. i am manus cranny. it is "bloomberg daybreak: europe" on the road in zurich. these are the stories setting your agenda. santander says it's on track to significantly outperform its 2021 goals. earnings season continues. deutsche bank numbers hitting the tape any second. next results for big tech. cloud computing devices, growth at microsoft. the disappointing numbers way on

google. -- weigh on google. investors are on the lookout for any comment on energy prices, business rates, or banking surcharges. the middle east parks largest multi-commodity mining and business company have reported their third-quarter results. the saudi arabian based minor sites higher average realized sales, prices for all its products, with the exception of gold. that's get to my colleague, yousef gamal el-din, on the ground in riyadh with the ceo. yousef. yousef: manus, yes, we are getting into a conversation around commodities and it is very and, given what we are seeing in terms of the inflation data around the world area joining us now is the ceo. thank you for making it to the program. you just announce your results. how much more tailwind are you

going to get from the sky high commodity and mineral prices and how sustainable is that? >> actually, you know that the major driver of those is sudden in. and also the energy prices and the bottleneck of logistics. we are looking really for those factors to see how long it can continue. dani: do you see this prevailing into 2022? does it go any higher do you think? >> i think we will see some stability in the prices in the middle of 2022 and probably the prices in the demand supply balance started here. manus: which -- yousef: which commodities specifically? >> all commodities.

yousef: we are here at an event which comes off that zero. a lot of companies are getting behind that globally. i'm wondering how that affects you shifting towards esg and more sustainable practices? abdulaziz: we have embarked on the esg framework for 2019 and we are pursuing our action towards the co2 emissions reductions. we are going to reduce 60% by 2040. yousef: you are a huge power user of aluminum. is there any plan to move towards perhaps green metal production. abdulaziz: definitely. our future expansion will be green and the current facility

is highly efficient. we are going to increase our recycling to increase the efficiency. yousef: you have had a phenomenal year in it sounds to me like this is an opportunity to share some of the prophets with shareholders. it is a dividend on the cards and if it is, how big is it going to be? abdulaziz: the dividends position is very transparent and governed by the end of each fiscal year. the board is recommending to do or not to do dividends but by the end of the day, it is the decision of the general assembly. yousef: so you are not going to give me an answer that abdulaziz:. -- give me an answer then. abdulaziz: we don't know. it is totally dependent on cash

availability and the requirement for the future expansion. yousef: what about the battery metals mining in saudi arabia? lithium and nickel? we understand you might be looking at some expansion plans there. abdulaziz: absolutely. in the next 10 years to 20 years, we are going to spend a huge amount of money looking for those metals within saudi arabia. yousef: interest rates are fairly low but there is a concern they might go up a little bit as monetary policy begins to pull back, when it comes to accommodation. an opportunity to tap the debt markets to get a little bit more financing or you don't see a need for that? abdulaziz: definitely, our balance sheet is quite heavy. we will add strong discipline to our strategy when it comes to the capital structure in the future. yousef: expansion plans? you say

you have a healthy balance sheet. commodity prices are high. it really looks like -- abdulaziz: healthy balance sheet. we are quite leveraged on the balance sheets. yes, we have future expansion. we have two plans for next year. one is gold and the other is ammonia. abdulaziz: what about this -- yousef: what about the tit for tat with the united iteris. -- united states? is it tariffs for imports? abdulaziz: we are exporting to the united states, specifically in aluminum and we are ok with this. yousef: the gas crisis in europe, and look at the numbers and how far prices have come. how could british government

support affect it? abdulaziz: it is affecting the whole supply chain and we are seeing big entries on the ammonia prices which is a major component and i hope that we will find some way and means to control the prices. yousef: as we go into 2022, what is your biggest concern in terms of preparing for potential scenarios that could affect the company? is it the change in monetary policy globally? is it inflation? is it relations within the u.s. and china? what is it? abdulaziz: the major things that we are currently having is really looking to logistics bottleneck. the logistics bottleneck is affecting everybody across businesses and i hope that we

will have a solution in the future and also the gas price, which is increasing dramatically the cost of the material. yousef: it has been great catching up. thank you so much for making the time he had a real pleasure as always. abdulaziz al-harbi, ceo. manus. manus: yousef, thank you. great set of interviews from yousef gamal el-din on the ground at sii. they are talking about the energy crisis. some breaking news recap for you from deutsche bank. i give you the topline numbers a little bit earlier. let me just give you some of the more details. there is a tliv on the bloomberg. jump on there. fixed income trading. that falls by 12%. that is a banner headline. the americans are up 50 percent to 60%.

the outlook is quite positive for them. they see a better 2021 on investment banking revenue. on the dws, asset management side, i broke those numbers for you did fix hundred 56 million, up on a strong 17%, up 17% on the year. when it comes to deutsche bank and a breakdown of what is going on in the business, equity origination, if you look at the investment banking side, 20% driven by higher market share and taking companies public. spac's, that certainly helps the business as well. they have seen normalization in capital markets. i think we are getting ready to speak to the cfo. [no audio] manus: so we will bring you that

conversation in just a couple of minutes. i want to give you some of the other top lines that have come through here. he is confident in saving. he is confident there is a provisions fall and this goes to the heart of the recovery, so we have seen that come through. the activity has increased all the way around in the third quarter. you just heard that as well, that reminiscent the incoming through from santander and the cfo. in terms of the >> and how they are positioning, the man himself can tell us a little bit more. he is the cfo of deutsche bank. >> we see continued momentum and delivery on the promises we would be making to our shareholders. our three months and nine months performance this year is absolutely in line with the trajectory we had set for targets and performance next year and importantly, the transformation that we have been working on in deutsche bank is underway and ready to deliver on its targets and goals.

and the momentum in the businesses is very strong, as you point out. >> in particular, there was one figure here that caught my attention, which was the asset management business and also the green space. you were able to attract a lot of money and it seems your target you are hoping to get by 2023, you are far ahead of that and other targets will be met so how much appetite is it from the investment committee and close we are seeing, particularly in the esg space? james: very strong. revenues were up 17%. asset enter management up over 20 billion and that reflected inflows of 12 billion including 5 billion, to your point, in esg products, which is very strong, record growth in that product area. on the deutsche bank side, we have been measuring sustainable financing towards a target we had set initially for 2025 of 200 billion. we brought that forward to 2023 and at this point, we are at 125 against measure so we see growing appetite for these products and a growing

acceptance in the market and an increasing product areas where green esg sort of rules and technologies are in place and working really well. >> in terms of the investment banking, they were slightly down but in line with what the market was expecting. do you blame that on performance or the overall market conditions are not as exciting as they were a year ago? >> it's a normal relative to a strong 23 in 2020 which was colored by the pandemic conditions we are in so against the backdrop, 6% down in the investment bank is strong performance to our mind. >> what about fixed income? that is the unit that you are competing with. how will you stay competitive? >> i think we performed in-line with the market which is good against what was in outperformance last year in fixed income and it demonstrates we are really consolidating our market shares. we have continued the progress i think since 2019, since we

announced our transformation and restructuring. we have focused the business on core areas where we can be competitive and as we are seeing, the client engagement, momentum, the progress in the business is showing through. >> so you think there could be momentum in that part of the business. you do see client appetite at deutsche's. james: market conditions were more muted. so volatility was relatively low, but client engagement was high and increased as the quarter went on so there is activity out there as >> hedge -- clients hedge and position for a changing environment so we are quite optimistic about the ability to carry some of that momentum forward. >> of course we talked about clients and your business performance but the other thing is dividends since the tank is allowing for that. we are expecting to get one next year but i am wondering if you can tell us more. the timing, we kind of seem to know when it will be approved but in terms of the payments and how they will structure that -- james: too early to say.

after this restructuring, we have been clear that we intend to distribute capital back to shareholders. relative to our market cap, it is a significant amount. at this point, we made deductions from our common equity, tier one, of 640 million euros in order to support distributions next year so we think we are on a very good path to begin those distributions. they will have to happen in the ordinary course with ragged tory -- regulatory approvals but we are confident of our ability to begin on this process. >> i want to ask about the macro picture, particularly in the european economy. one-off, temporary or actually sticky. i don't know if you have a big opinion on that. how will that impact monetary policy? it does have the rate guidance forward. james: absolutely. huge impact. the current rate curve is already beginning to help

banking industry so as we see rates go up, in our case, the current curve is worth about $150 million in revenue terms more for us next year than we thought a year ago. so that is a help and that rises to about 500 million euros in 2025. in fact, more than that on the current curse. should inflation rise further and rates move up further, more benefit from the banks and that is very helpful, after a long period of low and negative interest rates. the economy going to the front of your question, look, when we talks to client -- talk to clients, they are looking ways to pass-through pressures. wages would adjust to those pricing pressures, feeding through. there is a risk that it is not transitory and there will be inflationary pressures sticking with us for longer. that is an adjustment the

economy obviously needs to make and the policymakers will be village -- vigilant about. i'm sure. there is an impact that will be felt now for several years i think can the rate environment will also need to reflect that. at deutsche bank, speaking to maria tadeo, talking about customers getting ready to hedge themselves for a changing market. today in the u.k., and businesses are looking to rishi sunak to replay or -- repair the strained relationship and ease the tax burden. the chancellor's statement comes against the backdrop of an energy crisis, supply-chain bottlenecks, and rising inflation. let's get to our u.k. economy reporter, lizzie burden. what are we expecting from rishi sunak today? >> manus, we are not expecting an expansionary budget from rishi sunak today because of this backdrop in inflation. he is not going to want to

trigger an even more aggressive response from the bank of england, which we know markets were already expecting to hike rates 2.25% in november at its meeting next week. that would only add to the cost of servicing the government's debt burden. on the other hand, if rishi sunak is not generous enough, he risks choking up which as you can see, there is a big risk off because of the winter of discontent that could be on the cards. the covid cases are rising in the u.k. and other countries are in boost mode. we are expecting him to focus his budget on addressing the cost of living crisis in the u.k. we are expecting a rise in the minimum wage, public sector wages, and a continuation on the freeze on fuel duty. unless there is a big rabbit out of the hat moment, as we know is often the case with chancellors

and their budgets, we are not expecting any big spending announcements because rishi sunak is going to want to cling to his credentials as a fiscally responsible conservative. he does not want to use the wiggle room afforded to him by the strong -- by the storm or than expected recovery since the march forecast. he is going to want to preach to the party faithful and give them hope that tax cuts could be on the horizon so unlikely to unleash spending until the run-up to the next election, which could come as late as 2024. manus. manus: going to be interesting to see the timing on the election, thank you. lizzy burden on the very latest in the u.k. let's get across to juliette saly with your first word news. juliette: delivery times for chips posted their smallest again in nine months in october. the lead times, the gap between when a semiconductor is ordered and when it is delivered,

increased by one day to just under 22 weeks compared with last month according to research by a financial group. the chip shortage that affected a broad range of industries may be starting to use. environmental group greenpeace is calling on the european union to ban short flights on trips where a train journey is available. popular routes like paris to amsterdam, madrid to barcelona, and munich to berlin. the group wants more government funding to improve rail infrastructure and make train travel cheaper. robinhood shares tumbled below their ipo price as third-quarter revenue fell short on declining printer currency transactions. sales slumped 78% from the previous quarter. the company posted a net loss of $1.3 billion, driven largely by equity compensation for employees following its flotation. >> we are keeping a close eye on

crypto as the regulatory landscape is increasingly uncertain. we are aiming to deliver rate new crypto futures for customers while being mindful of keeping our platform safe and introducing products that comply with legal and regulatory requirements crypto is still very early in the art -- we are excited to be investing in our platform here. juliette: global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus. manus: thank. juliette's -- juliette saly in singapore. big banks have not quit. citigroup and bank of america are earning hefty fees from oil, gas, and coal industries. we analyze the data. this is bloomberg. ♪

manus: it is daybreak europe. i am manus cranny in zurich. we are approaching -- firmly to getting to net zero. the big banks say they are committed to financing those goals but they don't seem to be able to quit fossil fuels since the paris agreement in 2015. global banks have put $4 trillion into oil, gas, and coal, as opposed to $800 million that went into green projects over the same -- $800 billion that went into green projects over the same period. our guest joins us from copenhagen. why is it so hard to quit fossil fuels? >> it is a lucrative business, and obviously, it is a gradual process but i do think the industry has been caught slightly off guard in terms of

the shift of sentiment is the world starts to panic about the fact that global warming is here, palpable, a huge emergency. the bank industry will tell you it is not something you can switch off from one day to the next. they do have long-standing relationships with a lot of these >>. they are trying to transition these >> by saying -- committing to them in terms of the financing for climate activists say it is not happening fast enough. we need to see much more transparent, measurable paths towards exiting the fossil fuel industry so that we do actually have a fighting chance of reining in temperatures so they don't go up five degrees. manus: if you go back and listen to that bill winters interview with francine, it's very much about to switch off the tap now would mean a bigger energy crisis but it could just be the bank side of the equation relative to what we are all told. how hard is it for financial

institutions to define esg? there are many metrics around the world and we have yet to hit global cohesion. tasneem: that is exactly right. esg has mushroomed into a huge part of the financial market, roughly one third of global financial markets with 35 trillion last year in esg so regular taters -- so regulators have tried to crack down on that, especially in europe. one has a taxonomy that is trying to hold the financial industry's feet to the fire. some are being caught on the wrong side of the regulators. it is being investigated in germany and the u.s. they say they did nothing wrong but it created a moment of reckoning in the industry in

terms of what can we actually defined as esg? they reported this morning a rise in inflows also into esg asset and they seem to be doing very well. manus: indeed. thank you very much. tasneem brogger, our esg editor resident in copenhagen. just a quick top line for you on some of the numbers from deutsche bank because this is what we are trying to square away. the advisory side of the business versus fixed income. fixed income trading falls by 12% but the advisory fees jumped by 82%. you just heard from the cfo, talking about a muted volatility in the third quarter, which is what caused a little bit of a slowdown in business. but clients are hedging and preparing for a change, regime change, and this is what you are going to hear more about, the same message from our guest yesterday at ubs, talking about a shift and trying to move from

four result -- fullness gone to just respond. productivity has increased and it really is the fic business relative to the advisory. the interview for the cfo is available on bloomberg.com and we will play it through the morning. mortar, on daybreak europe, european market open. -- more to come on "bloomberg markets: european open." ♪

anna: good morning. welcome to "bloomberg markets europe." deutsche bank holds market shares, but fixed income trading falls. we will bring you our interview with the ceo. mixed results for big tech. cloud computing drives growth at microsoft, but disappointing numbers way on google. investors are on the lookout for