dani: good morning. this is "bloomberg daybreak: europe". i'm dani burger in london with

the stories etc. agenda. rishi sunak is set to become the u.k. prime minister today after meeting with king charles. he warns of tough economic times ahead. >> there is no doubt we face a profound economic challenge. we now need stability and unity. i pledge that i will serve you with integrity and humility, and i will work day in, day out to deliver for the british people. dani: turbocharged loans, hsbc profit beats estimates. the cfo will be replaced. ubs warns client sentiment is hurt by uncertainties as rising rates drive better than expected profit in the third quarter. we will speak to the ceo. earnings are coming in fast and fit, novartis hitting now. the pharma giant with eps bang

in line with estimates, $1.58 where it fell, the estimate $1.57. they are revising sandoz higher, their genetics business, and we are looking to see if they will have divestitures. sales will grow in the low to mid single digits. some of their net sales that came in weaker, perhaps cost-cutting allowing them to beat on eps. we will be speaking to the ceo in the next hour. also hitting the tape, sap earnings, the german tech giant. revenue coming in at 7 billion euros, that is a beat, the estimate had been.

they are keeping cloud revenue in line, free cash flow is going to be 4.5 billion euros. that is a downgrade, previously they saw above 4.5 billion. analysts were looking for them to be had by a strong dollar, or having an impact at least. a decline in license sales should offset currency headwinds but profitability under pressure. their operating margin for the third quarter, 26.7%. mainly it is revenue for the third quarter beating, however going forward operating profit for the full year is in line but a little bit weaker when it comes to free cash flow. we will have an interview with the ceo luka mucic in the next

hour. but we have got to talk about banks. 15 minutes ago, ubs earnings hit the tape. higher rates coming to save the day. net income was a beat, 1.7 3 billion euros, the estimate was just over 1.5 billion. but it calls the results good amid a challenging environment. it will be that environment that we focus in on, they talk about uncertainties that continue to affect client sentiment. deal and private client activity were both muted, that led to third quarter investment bank advisory revenue which fell 58%. one bright spot, net income which is being helped by higher rates and trading activity which remained strong among institutional clients. manus cranny is not with me because he will be speaking to

the ubs ceo ralph hamers in the next hour, and we will bring that interview as soon as we have it. earnings coming in fast, and fake, -- thick, but markets are trading on extremely weak pmi's we had yesterday. they have shown an economy that is rapidly slowing, the average manufacturing pmi was below 50 which means contraction. for the first time since the start of covid, we are in contractionary territory perhaps giving us a buddhist -- bruce that we are at peak rates. u.s. stocks continuing higher for a second day. we have jumped off to the next one, looking at european stocks moving higher this morning but crosscurrents given earnings. we have a lot of big tech earnings, it is both microsoft and alphabet. sterling is up point 2%, it actually felt yesterday.

you fear to think what happened if someone became prime minister who the markets did not hope for. we will get more with china out of our reporters out of hong kong, setting the weakest fixed since 2008. the dollar versus onshore trading at 7.3. let's get to our top stories, anna edwards is at westminster once again she basically live there now as rishi sunak prepares to take the reins as prime minister. annabelle droulers will take us through market moves in china. the uk's incoming prime minister rishi sunak has warned of the profound economic challenge facing the country. sunak will become the first hindu leader, and the first non-white leader in more than 200 years. and it is outside the houses of parliament, what is the order of

process today? anna: the third prime minister in just two months in the u.k. will be meeting the king in a series of events we have become increasingly accustomed to with more frequent changes of leader. prime minister truss will leave downing street, she will say some words and go to see the king. and rishi sunak, not the leader of the conservative party will go to see the cane, the king will ask him if you can form of government. -- if he can form government. then he will make a statement in downing street if the rain holds off in front of media. it will be interesting to see how he reflects on the importance of it coming prime minister for the reasons you mentioned, the first hindu and british asian prime minister, a fact not lost on narendra modi

in india who sends his congratulations. and we will see what he has to say about economic crisis affecting the u.k. he will then set about trying to put together a cabinet. will he keep jeremy hunt as chancellor, according to our colleagues it looks increasingly likely that he will. and we will get more fiscal certainty from jeremy hunt and richey sumac. he is expected to put together across party divides to reach out to supporters of penny mordaunt and liz truss to bring others into the fold, and not just be surrounded by friends. who will get foreign secretary, could that be penny mordaunt? these are big offices of state. and at a time of war in ukraine. dani: anna, thanks so much. i also hope it doesn't rain for your sake.

anna edwards doing her best to give us informed. let's get back to the earnings story. the hsbc ceo is stepping down, he will be replaced from january 1. it comes after the bank posted better-than-expected third-quarter profits as rising interest rates boosted lending margins. let's dive deeper with bloomberg's senior banking analyst. ewen stephenson will stick around until april 2023, is it a surprise that he is leaving? >> he is a steady pair of hands but hsbc is a big group with many years of restructuring. the incoming ceo has background in global markets. am i concerned about that not really, but yes, it is a bit of a surprise. dani: we also have a new chief

executive of global banking and markets effective immediately, does this mean there is restructuring taking place? >> if you look at the restructuring that has taken place already, changes in headcounts happen all the time. not really a big shift in direction, but rates and fx are massive businesses with very good momentum. it's not going to be a strong. by definition, i think the environment changes meaning there will be a refocus. hsbc is still restructuring and so, this is an ongoing story. around the edges, not really a

concern. dani: jonathan will be back later in the show with more detail. let's move to china now with markets on much firmer footing considering where they were yesterday. let's bring in annabelle droulers, just amazingly volatile moves. walk us through them. >> really quite some exceptional moves in the session yesterday. when the markets came online this morning at 9:30 local time we still saw fluctuations between gains and losses but as we are heading into the afternoon session we can see mostly mainland stocks are moving to the upside. the csi 300 now flat. also, you see this divergence, we are seeing large caps being preferred over smaller names stocks. perhaps an indication that investors will prioritize

large-cap companies given the president xi and his leadership team are focused on policies that back state-owned enterprises. we are seeing vhs tech index -- the hs tech index recovering. the other story was the yuan fix, it was the weakest one since the depth of the financial crisis. in terms of the reaction in currencies, but the onshore and offshore currency above 7.3, a key psychological level. we have never gone beyond that for the offshore currency but an indication that the pboc is under pressure ahead of the party congress to keep that weakness in check, but now allowing it to reflect the true fundamentals of the economy. dani: thank you very much, annabelle droulers in hong kong keeping on top of all of the volatility there. let's take a look at things we are watching out for today. at 9:00 a.m. u.k. time we will

have germany's ifo survey, one of the best indicators of growth. the business expectations balance is the main one to watch in there. shortly before 10:00 a.m., the boe's chief economist will speak at an event about the cost of living crisis. at 3:00 p.m. u.k. time, u.s. consumer confidence data which deteriorated as inflation and interest rate hikes remain headwinds to spending. we will have a whole bunch of earnings results throughout the day. we already had hsbc but also look out for microsoft, alphabet, gm, ups kicking off big tech earnings. this comes off of the back of apple saying they will be raising prices for some of those services. rishi sunak set to become the u.k.'s next prime minister, we will look at the economic challenges ahead and the path for sterling. this is bloomberg. ♪

>> there is no doubt we face a profound economic challenge. we now need stability and unity. i pledge that i will serve you with integrity and humility. and i will work day in, day out to deliver for the british people. dani: rishi sunak speaking after winning the conservative party leadership. he will go on to meet with the candidate to become the next prime minister of the u.k. sterling has gone for a wild ride up to this point, joining me to dig into it is the head of global market research at mufg. i was surprised when the speech

ended because it was so short and there was no applause afterward, so it felt a little awkward but does it seem at the moment that rishi sunak will bring less volatility in sterling. we have this chart comparing pound effects volatility versus global volatility. it remain significantly higher than the rest of the world, does that normalize? derek: we have the best chance that it will. there was a few different scenarios in the run-up to this leadership contest. we've come out with the logical solution and that was richie suge knight. in that perspective, it was good news in terms of the prospects of volatility coming back down and conditions normalizing. i'm not sure we're going to get a significant for the rally in terms of the pound. we have had a choppy move, we are now back to where we were before the whole political

turmoil began. the political risk premium that had been built into the pound has now been fully taken out. we are now back to okay, this is better than before but we still have the fundamental story that was before. dani: i have a chart saying it is out of the fire but into the frying pan, you are basically saying it is not great. we saw sterling fall yesterday, i feared you think if boris -- fear to think what it would have done if boris had come in as prime minister. derek: we've had a good bounce back, perhaps the rishi sunak scenario is fully priced. just looking at the dollar side, we've had a couple of interesting days. we had a very big drop in the dollar at the end of last week.

we have had some shift in communication from the fed, there is possibly more of that to come at the press conference when we have the rate hike in november. markets are sensing a shift in sentiment about slowing the rate of the pace of tightening. dani: we had pmi's yesterday from europe, u.k. and the u.s., manufacturing and services in the u.s. very weak as well, globally, are we reaching peacock's policy -- peak hawkish policy? what needs to change? derek: the dollar has been on such a tear that if we get full confirmation, and by that i mean markets being a lot more confident. not just about slowing from 75 to 50, but slowing from 25 to doing nothing, the back end of

23, is becoming more convinced on ratings. dani: much of the world would want to see that, it has been the fly in the ointment for many economies. i was telling you over the break china feels like one of the most consequential stores, be upbeat weekend -- be it the political machinations of xi jinping, how weak does it get if they really some of the control they have? derek: the renminbi index is still off 10% from when china was in the covered scenario. coming out of covid, it started to rally, from a trade perspective you could argue dollar-cmy could go north of 7.50 quite quickly. quite quickly i think is what the chinese want to stop. they have allowed depreciation

to be relatively orderly. when you look at capital flows, yes, we have had outflows in terms of bond markets and equities but it has been relatively orderly. what they want to avoid is what happened in 2015 when we had that mistake of fx fueling capital flight in china. but if the dollar has another light stronger from here before we get that reversal, in that context given the reaction of travel, certainly getting to 7.50 or above is possible. dani: given china politics have fueled capital flight, there are concerns about xi enacting economically unfriendly policies, what is that change for you? derek: that is the medium-term horizon story. the choices and for speech where

it wasn't as much about gdp and grow, it was as much about security. investors are concerned about a shift to foreign, and implications for taiwan. that's the story investors will be watching closely. the very near-term is covid, and a zero covid, and some of the choices of the standing committee. we have at because of the zero covid policy, so the senses we will not get a shipped on that and that's obviously bad news. that's the reaction we had yesterday and the cmy weakness we are getting now. dani: derek, we are out of time, derek halpenny head of global at mufg bank. world leaders are warning russia about escalating the war in ukraine. we will bring you the latest. this is bloomberg. ♪

dani: nato secretary general has rejected russia's vote false claim that -- quote false claim that ukraine is preparing to use a dirty bomb. we go to maria tadeo, we heard about the phone call over the weekend, has anything else happened? maria: the calls continued. that is a new development, the diplomatic channels between the west and russia have been almost completely cut off since the war started. there you have this flurry of calls about this potential dirty bomb. yesterday you had that clear warning from the nato secretary-general who says the alliance rejects claims made by

russia that ukraine's preparing one. remember the idea is these are explosives that are tied up in radioactive material, and say russia should not use this as a pretexts to deploy tactical nuclear weapons on ukraine. over all, dani, there is a feeling of escalation that we are entering potentially dangerous waters. every military expert i have spoken to tells me if something of this sort happens, you are now entering uncharted territory but also a very serious escalation that would now become a very different war. dani: and maria, we have chancellor scholz hosting a fundraiser for ukraine in berlin, how much of an issue is money in this war? maria: this is happening today, a fundraiser by the german chancellor in berlin. it is the idea of rebuilding

ukraine. you know very well the amount of money that flowed around are enormous, from $500 billion. ultimately, this will hit a $1 trillion mark, this is almost a marshall plan for ukraine. there are two axes, long-term reconstruction and also short-term funding. ukraine says they need or a billion dollars next year to their economy afloat. the country is burning through cash every month. this will become a real debate at one point. who is going to pay for this and how? we have a living cost crisis in europe, and a number of countries and suggest perhaps this is now time to explore what to do with russian rosen -- frozen reserves. dani: that's our europe correspondent maria tadeo.

we have hsbc talking with our bloomberg news team, it is about the successor plan and the cfo ewen stevenson department, saying they did that change with a view to long-term succession. there looking at 30 possible successors. it shows you that he was not in the running for future cfo, so they put elhedery in. we will millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad

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it will release your fat and it will release you. dani: good morning, this is "bloomberg daybreak: europe". i'm dani burger in london with the stories that set your

agenda. rishi sunak is set to become prime minister today after meeting with king charles, he warns of tough economic times ahead. >> there is no doubt we face a profound economic challenge. we now need stability and unity. i pledge that i will serve you with integrity and humility. and i will work day in, day out to deliver for the british people. dani: turbocharged loans. hsbc profit beats estimates as lending income jumps on higher rates. georges elhedery will replace ewen stevenson as cfo. ubs warns client sentiment is being hurt by uncertainty even as rising rates drive better-than-expected profit in the third quarter. it is higher interest rates that came to the saving grace of bank earnings. hsbc and ubs both beating thanks to upper -- to net interest

income. we may be reaching peak hawkish policy, you can see it in weaker pmi data for the u.k., europe and u.s. all of that translating into weaker dollar today, it is basically flat. the trend of lower yields persisting, down four basis points for u.s. 10-year yields. not too much change when it comes to the u.s. equity picture , s&p and nasdaq futures had been hired to start but they are sinking lower. we have tech earnings on deck, microsoft and alphabet today and later in the week we will get apple. apple announced they will be hiking the price of services, but why would you want to buy tech until we get earnings, so perhaps hesitation there. let's look at that european futures, those are struggling to find a direction. doing better than the u.s. but up only .1%.

sterling higher .1%, it did fall yesterday versus the dollar. derek halpenny was saying any boost to sterling will likely be short-lived. we are looking at an onshore yuan that continues to deteriorate, 7.3. china putting in a the weakest fixed since 2008 allowing some weakness there. they did open up cross-border flows, but that is not really help give strength. let's turn to one of the conferences we are on standby for, but before we get there, i want to bring you earnings. orange third quarter ebitda reaches 3.5 8 billion euros. that is just the headline number, we will get some of that and will be speaking to them later in this program. the conference, let's get to that. the future investment

initiative, often referred to as davos in the desert, it is underway in riyadh today and brings together policymakers, investors and auto miners to discuss investment and the global economy. let's get to yousef gamal el-din who is there with a guest. >> it's not as cool as in davos, that's for sure. let's get to our conversation with the ceo of hkx. thank you for making it here, you have a packed schedule. we will get to your reason for coming to riyadh in a moment, but i want to start with the germanic selloff in china and hong kong stocks over the weekend. the consolidation of power, zero covid possibly here to stay, what do you take away from events over the weekend from hong kong? >> clearly a very volatile day yesterday. we have seen particularly tech names have been impacted the

most. that was a reaction of all of the investor questions around the future, around volatility around the world. at the same time, it is important to see that the long-term, and this we have seen from the gdp numbers that came out, 3.9 percent growth was a little better-than-expected which is precisely the point that we want to focus on, long-term opportunity and the companies being created. there is clearly different views in terms of which way rates will go and investors are trying to understand what decisions to take around that. >> we started to stake -- take the first steps toward reopening, i wonder if that is enough to get the economy back on an invigorating path for growth. >> the covid restrictions at some point will go away.

the question is, when is the right time? limitations are set to a minimum. there is a really large event next week with financial leaders from around the world going to hong kong. i'm actually quite exciting about this opening phase we are seeing in hong kong because if people have an interest in being there, investors see this as their bridge into china's a lot of excitement. >> opening up for ipo's, is that what you are hearing in a shift in sentiment? >> third quarter we had more than twice of the ipo's we had in the first half. when we look at the whole year, over 60 ipo's in the year raised over $10 billion. it's been a tough year for hong kong, however the increased pipeline is still good, about

140 companies have applied and are waiting for markets to get more stable, consolidated, so it looks good in terms of the pipeline. i agree with the comment that this may be a good opportunity to think about what is next. >> we had dramatic events on the lme throughout this year. the speculation is still not enough has been done to regain investor confidence. volumes are still very much low. what needs to be done to win back some investor appetite to get this back into the help and shape it is famous for? >> you are right. the lme has one hunter 45 years, -- 145 years of history. i was there yesterday, we launched our own lme week with metal producers around the work. -- the world. it is a tradition, we have seen

a lot of vibrancy, all those metal producers coming to saudi arabia where you see all this vibrancy in this market. there are things we are analyzing, we have an independent review looking at what happened earlier this year. based on that, we say what are the best measures to take and we move forward. there was an announcement yesterday about adjustments to what we call the lme passport that gives a lot of sustainability data to the -- that has been traded from the exchange. >> do you think the lme might be worth more under different ownership? are you in any active discussions? >> a lot of the manufacturers and producers of base metals are in china. there is a natural fit in terms of the conductivity. the key thing is, how do we get the most out of that advantage of being uniquely positioned as hkex, as part of china i think

that is what we have to focus on. how do we get that advantage into enemy? -- into lme? >> i want to circle back to riyadh, what could come from that in terms of issuers, capital flows towards hkex. >> there is a lot of vibrancy in this market. we announced a few weeks ago that we are looking into implementing a new strategy whereby essentially companies that list in hong kong will have access only to an international investor base, but also a domestic china investor base through a special program we have. that creates an opportunity which is pretty much the only market in the world where companies have access to domestic investors from china and international investors. it will be the only place in the world they can get that. there are so many companies, vibrancy, you economy companies

in this place of the world that can benefit from that. that gives us a lot of excitement. >> best of luck with all the meetings, in the stock has been in the doldrums so i hope that will be a turnaround. nicolas, thanks again for stopping by. we have plenty more in the pipeline. dani: definitely looking forward to that. interesting time to have conversations about ipo's. use of, lavina -- yousef gamal el-din live in riyadh. rishi sunak has warned of the profound economic challenge facing the country. sunak will become the first person of color to lead the country and the youngest p.m. in 200 years. anna edwards is at westminster, and eight more announcements of chancellors we should expect today? anna: absolutely, that will be the focus, for the markets on

cabinet building, and whether jeremy hunt stays at chancellor. in increasingly looks like the data of 31st of october for a full fiscal update is something we can look ahead to. but we wait for confirmation on those fronts. we will hear from prime minister liz truss around 10:15 this morning, she goes to see the king. then rishi sunak goes to see the cane, he is asked to form government, then he comes back to 10 downing street to give a speech. we will see what he chooses to emphasize, the difficult choices facing the u.k.'s something he has reference, we will see if that is a theme. then putting together that cabinet, and the other great offices of state, foreign secretary and home office, how much will he reach across to other parts of a divided party? dani: it is interesting to look at sunak's background, he has

been chancellor but also a banking and hedge fund background. anna: and put that together with the firsts you mentioned. he is a well-known person in the u.k. now, he had an active social media campaign during the pandemic so he is someone many people at least now. he is somebody markets no because he was of course, chancellor. the first british asian prime minister and hindu prime minister which was announced on diwali which was seen as a sweet coincidence. he is also seen as a child establishment -- of the establishment when you look at his elite education, and his elite business experience from goldman sachs to two hedge funds, so he is more schooled in economic orthodoxy than the people who have been in downing street the most recent six weeks

or so. he was praised because of the wavy wan -- way he warned liz truss over the summer about the difficulty she would face over the summer. that was one of the reasons he was picked to be the next prime minister. questions remain over how he will connect with people. he is an incredibly wealthy man, something penny mordaunt supporters were referencing yesterday. interesting to see what he chooses to talk about it 11:35 this morning in that regard. dani: anna edwards in westminster it will be back in about 15 minutes time for european markets. now let's get the first word news with simone foxman. >> ahead of a key ministerial meeting, bloomberg has learned the european commission's warning that any gas price cap would to avoid subsidizing loans to foreign consumers.

it would have to be extended to power importing countries like the u.k. or switzerland, or risk breaking a number of international agreements. a court in iran has issued guilty verdicts and indictments for 350 people arrested for taking part in government rallies. protests triggered by the death of a young woman in police custody are now in their sixth week. state media say four people have been charged with belligerence, a crime that can carry a death sentence. u.s. officials say the administration won't change their stance toward china as a result of xi jinping getting power in congress. the two could beat on the sidelines of next month's g20 summit in bali. 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. dani: simone, thank you so much.

we will be speaking to the orange cfo, after earnings, i -- come in in line. and strong growth in europe. ♪

dani: orange reported third-quarter revenue growth in line with expectations. does after the french phone carrier reported improved revenues in europe and a return to growth in spain. that's speak to the deputy ceo, one of the things that boosted your numbers was energy costs.

90% for 2023, how are you weighing up expensive hedges versus the uncertainty of the president of your -- your uncertainty of this percent of europe? ramon: we have a very resilient model with a very diverse portfolio of activities. the energy point is an important one. hedged 100% for 2022, and more than 90% for next year. it is expensive, the average cost of hedging is around twice what it was for this year when you look at 2023, but it gives you visibility. it also helps to give comfort that we can reach our 2023

objectives, so we were quite active here. dani: how concerned are you about recession in europe? you confirmed your guidance for this year, but cannot last given the economic -- can that last given the economic outlook? -- ramon: service is more more important than ever at a time when people were locked down during the pandemia, demand for services is bigger than ever. the risk. -- and once again to build on our different activities and geographies. we are in 8 countries in europe,

18 in africa and middle east. and all in all, we should be able to continue to have growth next year despite this very difficult environment. dani: and the difficult environment often fuels corporations to look at cost cuts, potentially divestituress as well, what are your plans with orange bank? would you look to sell or find a partner for it? ramon: we have a cost efficiency program which is on track, that we had launched in 2019, aiming at reducing by one billion, the net costs in 2023, we are now at 553 million net. we are on track on this point. we have a new cfo since last spring, so a systematic review

of all our activities. relaunch a bank in france and spain in 2017. we had the five-year birth d ay 10 years ago, and we have about 2 million customers in europe with orange bank. very good commercial performance and well-rated app. looking at what is going to make it possible to concept this project to ensure its future. it could be with partners, we review our options on a regular basis. dani: potential with partners, does that mean sale is out of the question or does that factor into potential possibilities? ramon: we are considering all options which are going to make sure we will be able to capitalized [indiscernible] in the first five years of activities. dani: another deal that we do know of that is the spanish

operator, how is it going when it comes to regulators, ramon? ramon: the spanish activity is a huge merger. it's a 20 billion euros between d spain number two on the market, and massmobile number four. we have ascending to the competition authorities since late september. the objective is finalize the transaction, close in the second half of 2023. is going to be a process of discussions with authorities but i am very optimistic it will go through and we are finalizing another merger in belgium. and we finalized yet another one in romania, so we are quite active on this front. dani: ramon, we are almost out of time but i want to bring up vicki you -- the eu's top court

last week tossed out a merger. re-examining whether this should have actually taken place, are you concerned that potentially the regulatory environment is getting less friendly to consolidation? ramon: i'm not concerned. it was a very specific case. i'm very optimistic on our case. dani: short and succint, they differed owning us this morning. coming up, hsbc's cfo has stepped down. we will also take a look at ubs. this is bloomberg. ♪

dani: let's take a look at key events we are following today. at 9:00 a.m. today we have germany's ifo survey. that will be followed by hungary's rate decision this afternoon. 3:00 p.m. u.k. time is u.s. inflation data, inflation and hikes remain strong headwinds to consumer spending. tonight, the treasury will be selling $32 billion worth of treasury notes. hsbc this morning posted better-than-expected third-quarter profit on the back of rising interest rates but the big headline, but cfo ewen stevenson is stepping down. let's get more with senior bank analyst jonathan tyce let's start. with the numbers, is it higher interestrates to save the

day ? >> it was a healthy beat, net income helps a great deal. they have cost-cutting for next year, which given the environment is very good. but as you say, the reaction to shares despite a healthy beat would suggest concerned about the change of management. dani: let's get into that. how much of a surprises this departure, and why? >> i don't think we really know why, it is a story that potentially the incoming cfo is being lined up for a ceo role. it may be too early to think along those lines and they have just been through a brutal restructuring. does it change the story, not really.

clearly, the revenue story managing that they frontloaded extra income guidance, one billion last for next year. the cfo in this environment is a shareholder trying to force a break is a tough position to be in. the reaction is almost harsh given the strong delivery. dani: i do like what noel quinn said that there is no one chosen successor. bloomberg's senior analyst jonathan tyce. the earnings continue, along with hsbc we also got ubs. who is on top of those earnings is none other than our very own manus cranny, what did you think of these results? manus: nims is the alpha for

everybody, net interest income. if we look inside ubs's numbers, i'm delicately balancing a laptop with the physicals notes, net income up $17.1 billion, but the alpha in terms of the money flowing fee generating assets, 17 billion dollars. you will hear where that came from in just a moment. where our clients parking their money? are they taking risk? the answer is there is going to be a quite a volatile period of time going forward. we will hear from the ceo. the one thing the market might get obsessed about today versus wealth management and a buyback of $5.5 billion is investment

banking, dani: it is a fascinating time. all of this volatility means that we see all of this drying up. manus cranny and in a few seconds, we will hear manus speak with ubs chief executive ralph hamers. part of the concentration is the outlook. they say the ongoing war in ukraine means that the bank is keeping a cautious stance. with that in mind, let's listen into the conversation between manus cranny and ralph hamers. >> volatility in the foreign exchange markets where we profit a lot, but you also see volatility leading to further uncertainty with our investors or clients on the wealth side. that uncertainty is translat