anna: good morning. i'm anna edwards. this is "bloomberg daybreak: europe." apple and amazon tumble in late trading, sparking fears of an unhappy holiday season. acb hike bets stay alive after mild pushback from the central bank. lagarde says higher inflation

will last longer than expected. another earnings bonanza. bnp paribas counts strong growth. >> being distinctively diversified delivered strong growth in the third quarter, and basically confirming the performance which is well above re-pandemic levels. anna: bnp paribas on their numbers. bnp paribas, 2.5 billion euros ahead of what was anticipated. a 900 million euro share buyback program on november 3. the bnp plan, $1 billion a buyback as equities. a 79% jump in equities trading is part of the story. it has been on equity trading we are focused.

this is a key area for french banks, and this is the first french bank to report, and a stage is set for others in the sector with strong equities trading. let's get the numbers out of daimler, third quarter ebit, 3.6 billion, another beat against the 3.1 billion estimated. mercedes-benz cars are seeing a slightly lower unit sales. this is with a little bit of what we heard from vw yesterday. the group ebi will be above levels pre-pandemic. the margins rather than the volume is something automakers have to think about as they prioritize where they put those chips that are in short supply. let's go from the auto space to the oil and gas space. omb numbers, third quarter clean operating result, 1.7 9 billion

euros. they are giving us production statistics, and we will speak to the management of omb shortly, the australian oil and gas business. what they think about the asset program that is key? we will ask about that. let's get to some of the data and what we are focused on this morning. let's think about what is going on in markets, this is the picture on the msci asia pacific down 0.4%. nasdaq futures pointing to the downside. technology stocks have disappointed. we are focused on supply chain issues that apple and amazon, and raising red flags about how christmas will go. i put the euro in here as well, because we have the focus on the ecb and what was interpreted as hawkish from the ecb, that sent the euro higher.

we are talking about inversion in the curve in the u.s. between the 20's and 30's, which is not a market focus. interesting to note that flattening is a more general theme is present in u.s. treasury markets. let's look at the ecb story from the lens of market expectations around interest rate hikes. the question yesterday was to what extent will the ecb pushback on market expectations? the market has not put off its expectations of a rate hike as early as 2022. the president of the ecb, christine lagarde, addressed the inflation outlook yesterday. >> inflation, inflation, inflation. we expected to rise further this year primarily because of the surge in energy prices, but also

the recovery in demand is outpacing constrained supply. the supply bottlenecks will fade. the economic actors will reconnect supply and demand. we are fully committed to 2% inflation in the medium-term. we expect inflation to decline in the course of next year. we are convinced our assessment and projections at this point in time are correct. the determination of our convictions should eventually come through. anna: it is not for her to say if the market has mispriced the chance of a rate hike, one of the main messages coming through. europe's eyes are turning from frankfurt and the ecb to the g20 at rome.

francine lacqua caught up with the european commission president, ursula vendor line. -- ursula-- >> we need to know about the need to fight climate change, and we have to agree on how we want to move forward. the most important part is innovation. we are investing a lot into innovation, intimate clean and sustainable technologies market feasible. the second is that we help as much as we can from the public sector, that there is emphasis on producing clean energy, on having the transformation necessary and the carbon price and market. -- carbon pricing market. for me, two things are important, innovation and market driven mechanisms, that is how we proceed to fight climate change. francine: do you think the eu

can have new rules to make sure finance sticks to what they have pledged in terms of climate change and esg? will we see stricter measures? ursula: we see two things, first of all there is huge demand for green bonds. green bonds we are issuing, there is a hunger out there for truly green that is clean and sustainable projects. we see also the reaction to the taxonomy as very positive because investors want to know whether the investments they do are not harming climate or nature, but are sustainable and future proof. francine: despite huge growth in the esg market, we see emissions climb.

what does it tell you about how capital is being allocated? ursula: it is true we are not on track yet, if we look at the paris agreement and the goals we set that are necessary to fight climate change. ahead of cop 26, the commitment by the different countries, we are not there yet. we have to be more ambitious, show more leadership. we need to transform our economy and the way we consume, and it is in our common interests because we know science is clear on that. anna: european commission president ursula von der leyen. let's get a first word news update. >> g20 leaders are preparing to pledge to stop funding foreign coal buying plans, but our

wrangling over wider climate a jep shares. -- climate objectives. key deliverables have yet to be agreed. the gathering comes ahead of the cop 26 summa in the u.k. bloomberg sources say some holders of china ever grand dollar bonds have overdue interest payments within the grace period, the second time this month they have staved off a default. ever grand's dollar notes remain at stressed levels as they prepare for debt restructuring. people vaccinated against covid-19 -- scientists monitoring 620 people in the u.k. with mild covid-19 found the viral load was similar regards of vaccination status.

those that did get the disease spread it more quickly and had more mild cases. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna: thank you very much. coming up, we will focus on energy markets. omv earnings are out, do not miss our interview with alfred stern. plus, -- lundin energy, we will speak about the company's progress. this is bloomberg. ♪

>> being distinctively

diversified, we delivered strong growth in the third quarter, and confirming the performance which is well above pre-pandemic levels. the strong result is stemming from all lines. let's look at the revenues, up 4.7%. one more line, risk is tapering off and standing at the low 32 basis points. let's look at the balance sheet, return on tangible equities, 10.4%. all of this basically makes bnp paribas more than ready to tackle going forward. this makes us announce as of

monday we will buy back for 900 million euros shares, and this on top of the 50% of 2021 earnings we will pay in cash dividend. >> what are your clients concerned about? >> if you look at the clients, they are focused on making sure they can capture the growth in front of them. we see that there is a lot of lending going on, particularly for investments. there is this environment that people feel the rebound of the pandemic is behind us, and we are capturing the growth going forward. the clients are really capturing this. anna: that was the bnp paribas cfo. president biden has delivered a framework for the latest version of his economic agenda.

he warned the future of his presidency and the party's congressional control is at stake unless his $1.75 trillion plan is passed. joining us now is derek wallbank. everybody in the u.s. is focused on this intensely, but to international audiences, we were talking about numbers bigger than 1.75. those holdouts among the democrats, will they be persuaded? are we hearing anything that suggest they will come on board? derek: it seems positive they are going to come around to this eventually, but not all of the i's are dotted and t's crossed. joe biden wanted to get the start of this passed through the house before he departed. they could not get it done.

they put out rough text it was not enough and not everyone was on board. the moderates do not trust the progressives, but the progressives really do not trust the moderates. some statements from joe manchin and kristin cinema were not enough -- kyrsten sinema -- that becomes problematic for biden. you could be talking about maybe multiple weeks until this actually starts to legislatively move. anna: that is interesting from an international perspective, as we see joe biden arrive for the cop discussions to think about the ability he has to take the country he has around climate issues. what about the virginia governor race? that will loom large on the agenda and could be an important indicator as to how president biden is doing.

derek: that is the big thing to watch, that is coming up next week. terry mcauliffe, the former governor of virginia, a recently popular governor was successful in office is running for another nonconsecutive term. this is a state joe biden carried, but there is a lot of republican susie has him around the opponent, glen young can. -- glenn younking. . the terry mcauliffe campaign wanted to tell democratic voters who are not excited, we got something done. you mentioned this price tag has come way down. the aspirations for what might get done has come down, but there is a lot of stuff in this plan democrats like. not being able to get it done means you have to go before voters there and in new jersey and other places and say, we are

still working on it. that is not a huge get out the vote thing. there is concern among democratic circles that this could be a motivation problem for virginia voters who need to turn out. anna: we will look ahead to virginia. bloomberg's derek wallbank. third-quarter revenue from the airline, 4.75 billion euros, ahead of the estimate. they are talking about 70%-75% of 2019 capacity in the final quarter. they are saying they will make a full year profit because of the transatlantic revival, that has been a boost to many airlines, certainly european ones. air france talked about further funding on the back of capital raising, how robust is the

balance sheet? let's think about other earnings overnight. these are of the tech variety, apple and amazon fell in post market trading. facebook unveiled a rebrand to focus on virtual reality. laura wright is with us. what do we learn about apple and amazon? laura: the focus is on supply chain concerns. tim cook referenced it was a shortage of semiconductors that led to a $6 billion miss on revenue. total revenue for apple coming in at $83 billion, below expectations. in terms of products, wearables, below expectations. services at record revenue, trying to gain more revenue from subscription services. iphone shipments reached 50 million, which means apple is the world's second largest

smartphone maker, but when the markets open later today, apple could lose its crown as the world's most valuable company to microsoft because of these concerns. we take a look at what we saw from amazon, similarly supply chain concerns, net sales coming below expectations of $110 billion. this shows comparisons between the estimates and how the results came in quarter on quarter. one upside was amazon web services from which it derives most of its profits, coming in at 39%. it was wages, labor shortages, and making an impact on amazon. anna: the cost of wages, warehousing and the logistics that go with that. let's stick with technology, facebook, this immersive

technology to come, the meta-verse -- i think i am excited. laura: facebook will become meta platforms and be listed as that from december 1. mark zuckerberg sees this as a push into a new frontier on technology, that will be virtual and augmented reality. we learned other earnings call they will separate out facebook, report that separately from the family of applications. the oculus gaming headset is on christmas lists this year. it is an exciting time for facebook and technology to see what the future holds. anna: i wonder how long until of avatars of us present this program. thank you very much, laura wright. coming up, jean jinping skips another summit, but the chinese

president says he will make an important speech to the leaders gathered in rome. we are live from italy, that is next. this is bloomberg.

anna: welcome back to "bloomberg daybreak: europe." joe biden and other g20 leaders are arriving in rome where international diplomacy will be put to the test, from climate to energy and the global economy, heads of state look for consensus amid rising geopolitical tensions. we are joined by her european correspondent, maria tadeo, in rome. thank you for tracking these leaders across europe and these big events. the g20 and cop 26 coming up, how realistic should our

expectations be? how much can be accomplished? maria: that is the big question going into this weekend in rome. there is a lot on the agenda. you mentioned that energy crisis, security, china, the global economy will be talk about and will be a big talking point. how much will translate into action? officials are worried about climate, and they see if there is not a major agreement out of this, it is unlikely to see governments meet the paris obligations, especially when you look at the 1.5 degree climate target. that could be in jeopardy unless major measures are made. the one area we are expecting to see consensus is that tax deal, the 15% minimum corporate tax. the europeans were pushing for

this for years, and are expected to give the seal of approval. there are big question marks in terms of the implementation. we have to keep an eye out for bilateral meetings. president biden will meet with emmanuel macron, the relationship is tense. the french president will also meet with boris johnson. it is a bilateral deal that could be interesting going into the g20. anna: it is important to note the people who are there, but the people who are not there and what that tells us about their priorities. russia and china, crucial absences. what is the significance? maria: vladimir putin, the russian leader, has decided not to attend the meeting, same for china.

officials behind the scenes who are critical, more hawkish voices say this is further proof that those countries are not willing to engage in international diplomacy. they are pulling away from the international stage. they also concede there needs to be some level of cooperation. when you look at the energy crisis in china, but when it comes to climate. to hit those climate goals. you need a country like china, a heavy, big polluter to engage on this matter. anna: thank you very much, maria tadeo from rome. the action will be in rome for the early part of the weekend. switching over to cop 26 later on. businesses focused on the climate change addenda, and talking to us about it, and wanting to hear the leadership and the boundaries set by politicians globally. we will see if they can achieve any of that.

we will be speaking to executives from the oil industry. omv energy, we will speak to the ceo, alfred stern. we will also speak to lundin so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress, and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com. anna: good morning from

bloomberg's european headquarters. i'm anna edwards, this is "bloomberg daybreak: europe." disappointing tech numbers, apple and amazon tumble in late trading, sparking fears of an unhappy holiday season. ecb hike that's stay alive after mild pushback from the central bank. the guard says higher inflation will last longer than expected.

another earnings bonanza, bnp with a $1 billion buyback. earnings coming through in macro data from france, french gdp hitting bloomberg. the economy grew 3% in the third quarter. the estimate was 2.2%. that is ahead of estimates, where it had been anticipated. french consumers propelling economic growth to 3%, according to the economic voices who pored over this. households ratcheted up household spending. that is the recovery where france finds itself in as we track european economies out of covid-19. this comes on the heels of the u.s. gdp data, below estimates for the third quarter, and the slowest since the recovery began.

let's focus on the energy space. omv has reported net income for the third quarter that beat estimates. they say high european natural gas prices are starting to impact demand. joining us is alfred stern, chairman / ceo, omv. let's start with gas prices. you say those have started to impact demand. are we talking about demand destruction? how extensive do you see that? alfred: great to be on your show and talk to you. gas prices have raised strongly. read in the second quarter we saw rising gas prices, but in the third quarter they really shot up. if you look at the imbalance between demand and supply in europe, and with this, prices are rising sharply.

some of the european producers have curbed production because gas prices are too high to make a profit. this will be a problem in the long run. anna: how do you see gas prices developing, with that said about how that might weigh on demand? alfred: if you look at gas storage in europe, it is at a low level compared to historical averages. as you anticipate the winter season starting, it is a high demand season. it will depend strongly on how quick the winter will be, and it will play an important role in having access to additional gas. with these balances, [indiscernible] anna: let me ask you about nord stream 2, a project you are invested in.

you have spoken enthusiastically about it. how confident are you around the timetable of the commissioning of nord stream 2 to? alfred: a financial partner of nord stream 2, and at this moment the pipeline is mechanically complete. they have done all the testing. the first pipe is ready for production. what needs to happen is the regulators need to give approval to run the pipeline. anna: i saw one analyst suggest that approval could become as early as november. the ministry has said the risk to european security, do

you see a commissioning as early as november? alfred: it is difficult to tell. we discussed this with the nord stream 2 company, but it will be of help to have another pipeline coming to europe to diversify the distribution channels. anna: president putin has pledged increased supply to europe. do you see that coming? what do you anticipate russia will do? alfred: i can only speak for omv. the contractual commitments, we received all the gas we have contractually ordered, and that was -- [indiscernible]

anna: i know omv has sold a stake in an oilfield to lundin energy, how ontrack are you with your asset sales program? alfred: we are really on track. we are committed to it investment program to deleverage, and we think it is our third wave of this program, 320 million with a conditional 20 million depending on plans. -- depending on capex plans. with other divestment programs, they have already added up projects to 700 million this year, and projects we have signed but not closed yet will

provide another 800 million. with this strong cash flow, we have deleveraged, and committed until the end of the year to have our leases below 30%. we are already at 28%. that is a great achievement, showing the cash firepower of omv. anna: as we head towards cop 26, can i ask you about what your expectations are, and what you expect to see? you have net zero commitment like many, but you are predominantly in the oil and gas business. what investor appetite you see to invest in businesses such as omv? alfred: i think it is important we make significant progress with climate production.

at omv our pathway is to move into the materials and chemicals direction, and be in a strong circular economy. we think we can be a leader in a circular economy that is differentiated to other oil and gas companies, and we can make significant contributions to decarbonize our lives. anna: when you have conversations with investors, do you get the sense the existing investor base is on board with that transition? are they pushing you to go faster? alfred: i think our investors are excited about our pathway to chemicals and materials. the reason is pretty clear. if you look at the results so far, a significant piece of our cash flow of operating profits is already coming from chemicals and materials.

we have a large organization, plans globally, we have our own technology. our inventors are excited that this is the pathway we are choosing to make energy more sustainable. anna: thank you so much, alfred stern, chairman / ceo, omv. let's get a first word news update. >> the ecb has renewed its pledge to keep emergency bond buying at a moderately slower pace even if inflation surges. the governing council advised president christine lagarde to emphasize guidance but stopped short of saying investors bet on a hike are wrong. the ecb signaled the pandemic bond purchase program would end in march. >> our analysis certainly does not support that the conditions

of our forward guidance are satisfied at the time of lift off as expected by markets, nor any time soon thereafter. >> president biden has told house democrats that political fortunes depend on the passage of his economic agenda. $1.75 trillion has won widespread praise within the party. but they continue to hold up the other part of the agenda, $550 billion infrastructure bill. pres. biden: consensus and compromise is the only way to get big things done in a democracy. important things for the country. i know it is hard. i know how deeply people feel about the things they fight for, but this framework includes historic investments in our nation and people. >> a new study suggests people

vaccinated against covid-19 are likely to spread the delta variant as those without shots. scientists monitored 600 people in the u.k. with mild covid and found out that peak viral loads were similar regardless of vaccination status. vaccination household contacts were less likely to contract the virus, and those who got the disease had a clear up more quickly and with more mild cases. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. anna: thank you very much. coming up, back to the energy sector. lundin energy, third-quarter results -- we speak to the ceo, nick walker, next. this is bloomberg.

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anna: welcome back to "bloomberg daybreak: europe." let's get breaking corporate news. we stick with the energy sector, numbers coming through for the italian energy company. operating profit, 2.9 billion euros. and it comes to adjusted net profit, 1.4 billion above the estimate of 1.0. the big focuses on the value of renewables unit to be ipo'd. we will look for guidance around capital expenditure and energy transition as we edged towards cop 26. let's get to the nordic oil and gas company, lundin energy has reported third-quarter results. we are joined by the ceo, nick

walker. numbers coming in higher than estimated. omv work cautioning the market the higher gas prices was leading to demand disruption. do you see higher energy prices leading to demand disruption? nick: no, we have had a great quarter on the back of great operating results, and strong prices. that has allowed us to deliver great financials. the outlook for businesses this morning, we are increasing our dividends for 2021, a 20% increase over 2020 levels. i think that demonstrates the quality of the business and our commitment to returns. we have had a great quarter this quarter. anna: what do you expect to see in energy prices for oil, gas,

other energy products, and do you expect that could lead to any demand disruption? are you expecting prices to go higher over the winter? nick: i think we will see strong prices going forward, as economies recover from the pandemic. we are almost back to pre-pandemic levels in terms of demand. you combine that with underinvestment and supply-side, i think that points to price pressure. i think we will see that long-term in the oil sector which is where our business is focused. recent events show reliable affordable energy, and we have taken that for granted for too long. anna: what do you mean by that? do you think the energy mix is wrong or there is a lack of investment in fossil fuel energy? what is your take away? nick: we have seen with low oil

prices for some time underinvestment in the supply side for the industry. now we are starting to see supply and demand levels match, and high prices. we are a long-term business, it takes time to produce and develop oil. it will take time to run that through the business. we expect high prices for some time to come certainly in the oil sector. anna: overnight we got news you bought a stake in an oilfield from omv. tell us about the rationale. nick: this is a great deal for us. we bought a piece of it last year and were super pleased to get the opportunity to buy another 25%. that will make the next core production area for our business. we get 130 million barrels for this, more than two times our production level this year.

we are growing the business. it is a great project that will move forward into development next year. it will underpin production for the long-term. anna: let me ask you about your exploration strategy. it includes frontier exploration , and there is a potential ban on arctic oil and gas, is that something you are expecting or planning for? nick: no, i do not think so, and the norwegian government has made strong statements that they support activity, and we expect activity to continue. the reality is, it is no different drilling offshore anywhere else in norway. the industry has a long track record of working responsibly, and that will continue. anna: you talked about carbon neutral oil, and how you have

been at lundin energy upsetting carbon emissions from your largest field. have customers been willing to pay for that? is there a premium attached to that? nick: no, we set a plan to be carbon neutral in our operations by 2023. we will be there, and one of the first companies to achieve that. we see in time customers will see value for that. if you are buying a barrel of oil, would you like one with high carbon emissions or low carbon emissions? i think this will be a keyvalue differentiator. we are not at the present time creating the premium, but it will come. anna: how long do you have to wait for the market to get to the point where you get a

premium for that product? nick: we are seeing around the world a lot of analogies where you can buy low carbon aluminum today. lng markets are starting to develop. we started this earlier this year, and the market is starting to develop. with patience and time, we will see value. anna: nick walker, president / ceo, lundin energy. interesting perspective on the production of energy, and how carbon neutral that can be. there are bigger conversations around scope. coming up, more on corporate earnings and climate. we will speak to the ceo, jan j enish, holcim. this is bloomberg.

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>> q4 should be much better. then we should see an increase of semiconductor supply basically quarter after quarter. >> we have seen recovery from the impact in q3 from our supply that caused deeper impacts. i'm optimistic we are through the worst of it. >> there is no objection when it comes to the shore and midterm. we have a fully aligned supply chain when it comes to 2022-2023. anna: some of the world's top ceo speaking to bloomberg about

concerns around the supply chain, a perennial topic of this earnings season. it has been a focus for us. let's look at stories that will dominate today's coverage. we will get the latest gdp data from major eu economies. we have the french number, and will get other details on the european recovery picture. we'll see how the bloc as a whole has recovered. we saw a relief from lockdown measures in france. g20 health minister's will meet in rome ahead of the leaders summit that takes place this weekend. covid-19 in the climate will top that agenda, setting us up nicely for cop 26. later today, volvo will ipo on the nasdaq. they slashed the public offering by a fifth, making it the latest a pullback from equity markets

roiled by energy costs and supply chain issues. just to illustrate moves we are seeing come of the overall picture through asia is a weaker one, down 0.4%. in the middle column, sovereign bonds showing the australian 10 year with a jump in yields. another day where the rba did not come to defend the yield targets it has on government debt, and as a result the market is asking if we see a change in policy, will it come next week? in the context of conversations we were having about energy, some of the energy -- looking at natural gas, it is trading weaker as of late. a fairly mixed picture with energy.

other assets, msci asia showing weakness. european futures are pointing to the downside. ftse futures down a similar margin. nasdaq futures, because we have so much news around tech overnight from amazon, apple, leading to concerns around supply chains. just as we heard from companies that deliver products, it seems supply chain disruptions are impacting companies that make phones and other tech products. also companies like amazon that deliver them to you. we saw a slightly hawkish interpretation of what we heard from christine lagarde at the ecb yesterday, that pushed the euro a little higher. we have seen an inverse in the 2030 path of the curve in the u.s., that is not the market focus, but it ties in with the flattening theme. that is it for "bloomberg

daybreak: europe." we will continue to focus on the corporate earnings stories, plenty to come this morning. this is bloomberg. ♪