tom: this is "bloomberg

daybreak: europe". i'm tom mackenzie in london with manus cranny in dubai. these are the stories that set your agenda. manus: stocks and futures are mixed after the fed signals a pause in its type cycle. fresh turmoil in the regional banking sector and the u.s. place on sentiment. >> we will need to data to accumulate. in the assessment we have made, that would mean we have reached that point, it is not possible to say that with confidence. manus: the ecb is up next, with market seeing a downshift to a 25 basis point hike on signs of inflation may be topping out. another big day for earnings, looking out for cars and ships, as infineon my bmw and volkswagen hit the tape. could morning, ab inbev, how

much beer did they sell? tom: the redhead is a decent beat in terms of beer. in terms of first-quarter earnings, a solid beat for the world's largest brewer, 30.6% in terms of adjusted if it -- ebitda for the first quarter. the estimates had been an increase of 5%. maybe concern around volume growth, the estimates have been 1.2%, a little below the estimate for the first quarter but even death -- ebidta is a boost. ab inbev expects full year revenue growth to be growing ahead of ebitda for the full year. it sees organic adjusted ebit da.

manus: from a risk perspective, pac west collapsed 60% after the fed decision last night. a couple of breaking lines in the past hour on bloomberg, they received several notifications of bidders looking at pac west. there has been no material outflow of deposits. they are looking at selling their loan portfolio, it is about 2.7 billion dollars. they have insured deposits of over 75% in the deposit book. those are the breaking headlines from pac west, the beverly hills lender, in terms of who could be standing up for that. we will put that to garfield reynolds. the swag bag could be full for j.p. morgan. that is the equity news. you just get that vision of jamie with the swag bag. tom: full at the moment.

how many buyers are left out there as these banks teeter on the edge? down 6% premarket for pac west. in terms of the banking sector, the kbw index down a little over 1%, close to 2%, on the back of concerns emanating from pac west and some of the other regional lenders. jay powell thanks largely the banking crisis has been contained. the reporting suggests maybe that is not quite the case. those concerns remain prominent. that is the index in terms of the banking sector, yesterday down 2%. across asia, a bit of relief. one of the best sessions in about three weeks across the asian benchmark. china coming back, japan remains on holiday but a decent session in hong kong, gains of .5% across the benchmark. european futures downside of

about .1%, the ecb decision weighing on the earnings picture. u.s. futures pointing to gains of .2%. after closing yesterday in the red. powell keeping the door open to a pause, but pushing back on the rate cut scenario. manus: our guest who we will catch up with shortly says we pause, and pray, is what he is looking at. there is no pause at the short end, it collapsed, the rhetoric from powell was around tightening of credit. the two-year collapsed to 16 basis points. cash was closed in japan. so we need to check that we are open at the moment. we show you the futures price on two-years in just a moment. nymex crude bouncing back, a violent implosion yesterday,

clawing some back. who is in charge of the oil market? is it the algo's and the spec' s, they are the nemesis of princeton solon -- prince bin salman. either way, we have all been convenient to vienna on june the third and fourth. gold is above $2000. yen strengthening over the past three days, up some 3%. ubs says that will make it to 120 by christmas. tom: that is the call. let's get to our reporters from around the world. we will talk regional banking with garfield reynolds. michelle jamrisko will break down the fed decision. maria tadeo is in frankfurt ahead of the ecb decision. manus: we have for pac west headlines, the lender at the center of the latest u.s. regional banking turmoil.

it is in ongoing discussions with potential partners and investors. garfield reynolds is tracking the story. the question is this. they tried to study our nerve, and they didn't see material deposit outflows. the question is who is the last man, or lady, standing who would bid for beverly hills bank? good afternoon. >> there is a lot still up in the air about what is actually going on. pacwest was reportedly saying earlier that it was exploring a range of options. possibly a wholesale sale of the bank, possibly halving off particular parts of the business to raise capital. it needs capital because its equity price keeps on dropping. that lowers the value of its equity. it needs to balance its books, it is a bank, and it can't do that if equity keeps draining away.

and the rest of his assets and liabilities are shifting. given that, there is a lot we need to know about what will happen. whether it can turn pacwest's situation around. we have a lot of bond and other investors saying they have been thinking svb was something of a storm in a teacup. it looked like it had been resolved. now we have a revival of concerns because first republic got solved, now pacwest needs to get solved. how many other u.s. regional banks need to get solved? what is going to be the impact on credit conditions, and on the wider economy and other sectors of stock markets? tom: credit conditions front and center. we know how important it is for jay powell, hiking rates by 25 basis points, and hinting it may

have been the last move of the cycle. >> if you look at on housing services, it hasn't moved much. it is quite stable. demand will have to weaken, and labor market conditions may have to soften. in that world, it wouldn't be appropriate for us to cut rates. tom: for more, let's bring in bloomberg's senior economy editor. the hype was expected, we got ready five basis points. we got a to signal, which is -- dovish signal, which is important coming through from the fed. what struck you in the highlights from powell? >> i will pick up from where garfield left off. his comments on the banking sector. he opened the press conference with a statement about what he saw as a sound, resilient and broadly improved banking sector was the words he used.

he talked about j.p. morgan taking over first republic being a positive thing. they don't want that to happen but it was a good outcome from the turmoil. in the face of comments from the former fed chief that we have been hearing all the week about needing to mind further troubles in the banking sector. he was sounding more upbeat than they would take that point to be. this is all about balance. they went with a quarter-point hike, that was expected but they signaled a potential pause from here. if you read commentary today, a lot of headwaters think we are -- fed watchers think we are already in the pause. he had to push back on that as well. he said we don't see any cuts. there was a strong feeling about this vote, it was unanimous. rates are at their highest since 2007. he had some key quotes around inflation saying it will take

some time to bring it down. a lot more time to bring it down to 2%, the fed target. if the forecast is broadly right, it would not be appropriate to cut rates. pretty strong on that side of things. plenty to watch as these risks infiltrate the fed's thinking, including the debt ceiling standoff which he touched on. manus: you always want to bring in something that could imp lode. michelle jamrisko on the debt ceiling, and the fed is all too much for one morning. it was the fed day. today it is ecb. that rate decision comes down to the data, it showed core inflation cooling in the euro area. credit conditions tightened. maria is outside the ecb in frankfurt. the question is not so much the hike, but the scale of the

height we get, does the data allow them to do 25 versus 50? >> by now it is pretty clear that the european central bank will hike rates again today. all of this to tame inflation. in the words of the head of the ecb, the fight against inflation is not done. the real question is will it be 25 or 50 basis points? in some ways it depends who you ask. your bank says we see 25 basis points but this is a close call. credit agricole sticks with 50 basis points. this is a minority call. but they suggest this is certain because you can spend the data both ways and find good reasons for both. when you look at the market overall, there isn't a definitive consensus call. but there is one that carries more momentum, that is 25 basis

points. the lending survey suggested credit conditions had tightened. the core inflation print cooled in april. this could give reasons for the european central bank to go softer this time around. the other issue is qt. this is a twofold decision. if you go softer on hikes, that would imply acceleration on the qt front. the other thing to watch out in this press conference is whether or not madame lagarde reiterates that this is a laser focused central bank that will go meeting by meeting and stay data-dependent. tom: it will be a fascinating day for the ecb. maria tadeo will be back with us later in the show for more details. let's take a look at key things markets are watching out for today. shell will report earnings in just under an hour, that is 7:00 a.m. u.k. time. at 9:00 a.m., the norwegian central bank will deliver his

latest rate decision. manus: we kick the day further along, 1:15 p.m. is the main event, the ecb will review their latest rate move. after half an hour later, the president of the ecb will deliver her press conference. 1:30 p.m. u.k. time, the latest update on the u.s. labor market, after the jobless numbers. that will be closely watched ahead of payrolls friday. coming up, the fed chair hinted at a 25 point height may be the final move in the most aggressive campaign is the 1980's. we analyze the implications. tom: equinor reporting first-quarter earnings that beat estimates. we will speak to ceo anders opedal later in the show. this is bloomberg. ♪

>> demand will have to weaken and labor market conditions may have to soften more to begin to see progress. in that world, it wouldn't be appropriate to cut rates. the u.s. banking system is sound and resilient. conditions have broadly improved since march. those have now all been resolved. it is essential that the debt ceiling be raised in a timely way so the u.s. government can repay all of its bills when they are due. it would be uncharted territory and the consequences to the u.s. economy would be highly uncertain and could be quite adverse. the case of avoiding recession is in my view more likely. it is possible we will have what i hope will be a mild recession. we are strongly committed to returning inflation to our 2% objective. inflation will not come down so

quickly, it will take some time. manus: jay powell speaking at the fomc press conference yesterday about the state of the u.s. economy, banking, and inflation. jeffrey cleveland is the chief economist at payden & rygel. he is making some very textbook assumptions. pacwest, we don't know about. svb, first republic, we are in outright deflation according to ubs. mohamed el-erian is lambasting the fed for looking at the wrong data. how wildly textbook was powell, and how offbeat is he in his assumptions? jeffrey: i don't know how textbook he was, but he seems to have the soft landing in mind. he is an adherent to the stop landing scenario. a lot of things need to go right, not much deterioration, a little bit of softening to use his words in financial and labor market conditions. the employment rate rises a little bit, and pati --

inflation cools, but not too quickly. the situation in the banking system doesn't morph into something more dramatic that causes a hard landing. he is definitely in the soft landing scenario. for investors, probably we should consider other possibilities here. one is that inflation is even stickier than expected. so, the fed may be pauses, and prays that inflation comes down, but it doesn't so they end up liking again. that is an interesting scenario for investors to consider. on the other end of things, a more adverse outcome. when i see bank deposits leaving the system, i see a systemic issue. it is more than a handful of banks. that probably means the credit contraction will occur, and that will hit growth, and hit

inflation. it probably takes longer to play out in the bond market currently has in mind. there is a much shorter time frame priced in. tom: there are so many different angles to attack. one of the stand once was his pushback on the forecast around rate cut spray the bond markets are not buying it though, they are still pricing 4.2 percent by the end of the year. jeffrey: the bond market has a different scenario in mind. it thinks growth will slow much more quickly, maybe more on the cusp of a downturn, and inflation will come down more quickly than the fed chair has in mind. that is the divergence. it's not unusual, over the last 12 to 15 months you have had three or four times were the bond market disagreed with the fed path. we know what happened in the

last year. it was the bond market that was wrong, rates went higher. that could happen again. we can't rule that out, that is important to keep in mind. manus: when i said he was making textbook assumptions, he said a lot of the stress from the regional banking system had gone. that is just not the case. the question is, do we go into a period of sharp contraction in fcom as a result of banks that lend 70% mortgages. fcom is in the red. what do you project in fcom as the consequence of these dominoes falling? jeffrey: i am watching the weekly fed lending data. we are also looking at the senior loan officers' survey which is coming out in a couple

of days. we saw banks tightening credit standards in the u.s., before the silicon valley bank situation, so i would expect that has accelerated. with a lag, the lesson of history is once credit starts to contract, do have the end of the business cycle. does that really start to bite in the next three months? soon enough to bring inflation down and get the fed to shift gears? for does this play out over the next 12 months, it just takes longer to play out? i think i am more in the latter camp. tom: where do you land on the recession forecast? it is counter consensus, powell on recession risk, saying in his view the u.s. will avoid recession this year. jeffrey: i can't tell you how much of that is actual forecasting. you have banking system issues, or do you going to say, you have concerns? now, sound and resilient and we

are on the case. on the soft landing, it is possible. for us, it is not the base case though. the probability i'm the next 12 months is 60 to 70% of recession. i would argue back against the fed chair on that front. he can point to the data this week. job openings have come down quite a bit. the unemployment rate is still pretty low. that is a soft landing story. inflation has showed signs of cooling, so that argues in that direction. i see his argument, but it is prudent to plan for a bumpier landing in the year ahead. tom: prudent to plan for that potentially bumpy landing. jeffrey cleveland, chief economist at payden & rygel, with the line we are not buying what the bond market is selling. thank you indeed. tensions high in ukraine, after kyiv denies being behind a moscow drone strike. more on that next.

this is bloomberg. ♪

manus: volodymyr zelenskyy has denied ukraine was behind the drone attack on vladimir putin's residence in the kremlin. same moscow may try to distract from battlefield failures. bruce einhorn is on top of the story. moscow is saying it was a terrorist attack. what is the international response? what has the kremlin said? bruce: ukrainian president zelenskyy has said no, this is not something ukraine did. others are saying you have to take anything russia says with some skepticism. for instance, u.s. secretary of state blinken said consider russian claims with what he

called a very large shaker of salt. beat biden spokesman pointed out a history of russian false flag operations used as a pretexts to justify other things. there is no confirmation independent, of course, of what happened. there is skepticism that this is what russia has said it is. tom: what do we know about what is happening on the ground in ukraine? there is the view that this is a distraction technique by the russians pray that remains up for debate, what is happening on the ground in ukraine? bruce: the timing of this alleged incident is interesting because it comes a week before the planned may 9 victory day celebrations in moscow and other russian cities that marked the soviet union's victory over nazi germany in world war ii.

the parade in moscow is going ahead as scheduled according to the kremlin. however there are about a dozen russian cities that have called off their parades. this is in anticipation of an expected ukrainian counteroffensive, and what that might lead to. there is a lot we might be seeing happening in the next few days. manus: let's track the story. he will be with us every step of the way. bruce einhorn in singapore. coming up, tom and myself will dig into the earnings season and continue with bmw and volkswagen. all hit the tape. autos in as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year.

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manus: this is "bloomberg

daybreak: europe". i'm manus cranny in dubai. tom mackenzie at london hq on the stories setting your agenda. tom: pacwest is in talks with potential partners and investors. the lender is the latest bank to find itself at the center of the u.s. regional banking turmoil. stocks and futures are mixed after the fed signals a pause. fresh turmoil in the u.s. regional banking sector does weigh on sentiment. >> is going to be an ongoing assessment. we will be data to accumulate on that. an assessment would mean we think we have reached that point. it is not possible to say that with confidence right now. tom: the ecb is up next, with market seeing a downshift to a 25 basis point hike, on signs inflation may be topping out. manus: we have a host of german

names breaking across the tape. volkswagen goes red. tom, it is a big top line for them take it away. tom: we are waiting for infineon, the chipmaker, that ties into the auto sector. let me bring up vw, the lines crossing, one of the world's largest automakers, the china story will be consequential. first quarter adjusted operating profit 5.75 billion euros, slightly above the estimates of 5.5 billion euros. oliver crook standing by in berlin for the analysis and reaction. you have been going through the earnings results from this german auto sector. flesh out the picture for us. all: you had a beat on the sales by is arguable -- by a sizable margin that grew.

it was supposed to come in at 72 billion. a lot of support for this company was in the backlog in motors in europe and the united states. there was a slide in sales in china which is not a great sign for vw, they have ruled the roost in china since the 80's and was beaten this quarter but byd, a chinese competitor in terms of sales volume for the first time. not only a chinese competitor, an ev maker of all things. the market stands at seven point 5%. we have a backlog of 1.8 million vehicles, and 260,000 electric vehicles. they are confirming their outlook, a fairly strong quarter but no change of the positive side on outlook which is what investors will be looking for, for the automakers here. and then bmw, the ebit margin

has absolutely crushed estimates, 12.1%. they were expecting it to stay within the 7% range. for them, ev's are a growth sector, up 112%. their guidance is confirmed for the year. seeing a lot of volatility coming down the pipeline. they announced that buyback last night after the market closed, 2 billion euros. investors will probably see some reaction in the share price, as it happened after the close. manus: the question is, when we look at these auto results. we will get two more breaking news from switzerland in just a moment. you have spoken to senior executives in the auto industry. first response on these numbers, what is the top line for you? >> last year, and into this year, it was a positive story for the auto sector because there was a lot of pent-up demand and backed up borders,

so order books were full and they were churning out these cars. now in the second are there is a lot of question about the slowdown, and purchasing power being eroded by inflation. in the first quarter, you saw that momentum stay out. he saw pricing power maintained and sales momentum doing well. the question is, have we reached peak pricing? that is what we will talk about with the cfo of volkswagen. how will you maintain margins? you will have to cut costs, particularly if tesla is coming to eat your lunch. tom: tying into the health of the auto industry is the health of the semiconductor industry, particularly the german infineon. the supply of chips, this is something analysts have been watching. we do have some results. in terms of margins, it is looking better for infineon. raising at least at the edges their full-year guidance in terms of revenues.

15.9 billion to 16 on five ilion -- 16.5 billion. the redhead for infineon, third quarter segment result margin about 26%. a boost to the margins, margins coming in higher for infineon then be estimates. 26% versus the estimate of 25.1%, so there is resilience when it comes to semiconductors, tying into that auto demand, interesting that they have raised the guidance at the top end, just at the margins, by about half a billion euros, but important nonetheless as we work through the inventory backlog for the semiconductor space. >> justhis tuesday, we had infineon breaking ground on a new fab. when you look at the pipeline going forward, this is a huge story in europe. there is a lot of political support and financial support.

they have raised their outlook twice in the last x months. these are the chips going into the backbone of ev's, and going into the energy transition. the average car now has 1400 to 1500 chips in it. as long as the auto industry is doing well, and the ecosystem of digitalization, this will continue to be supportive. manus: great work, the ifo institute saying supply chain has gotten easier, that plays into the whole narrative in corporate germany. and the industrials side. now to social and, -- switzerland, gam is selling their asset business to liontrust. they are recommending that sale.

there is a pretax loss for the full year of 42 million swiss franc. as you dig into this statement, there has been an outflow from the fund management services. there was a met client outflow of 6 billion, partly driven by 2.5 billion from one client transferring their business as part of a broader strategic relationship. that gives you a sense, when one major client pulls the ripcord, off you go. negative markets and foreign-exchange movements of 15 billion, accounted for over 60% of the overall reduction in assets under management. they now are 75 billion as of the 31st of december, 2022, and 23.2 billion in funds managed services.

the sale of this troubled, i suppose, organization has been absolutely in a sea of unsurety after tim hayward. this was the star bond trader. remember him? he had a major impact on this. the demise of gam is down to the issues going all the way back to tim hayward, in terms of the losses that were generated from part of his participation in the company. tom: this is the flow show you have been talking about, when it comes to gam. talking of the demise of his business, -- this business, the stock is down here today 15%. oil is on a roller coaster. first collapsed to the lowest level since december 2021, before trading marginally higher.

let's bring in our senior oil reporter for the context. what are traders focusing on, is of recession risk out of the u.s.? a further 25 basis points from the fed, or is it china and for the concerns about demand? >> can i answer all of the above? it is essentially a conflict of events. the u.s. recession is something -- we have got analysts saying this is the first time u.s. recession fears are being priced into energy markets. you are feeling that the bears are in charge at the moment, and there is this acceleration of prices falling. we are up a bit today. there was that recovery, but volatility has been punctuated, as there are fears that yes, the fed is raising interest rates. what is the impact on the u.s. market? there was pretty negative u.s. data out yesterday that showed

demand for some oil products were downgraded stockpiles were swelling. chinese demand isn't bouncing back the way traders had hoped. data shows chinese industrial demand and output is not as strong as they were expecting at this time of year. you have the resilience of russian oil production. they said they were going to cut by 500,000 barrels a day, but when you look at the export data, it is still quite strong. all of that spells a lot more oil not only in the market, but less fears of a tightening, and more of a view that perhaps the oil market will be much better supplied by the end of the year. when folks thought perhaps that would be much tighter. manus: i will challenge you, because a 7% tank in wti tells me something is deeply wrong in

the construct of a market. it is either recession panic or something much more malevolent. we have had the envelope rolloff to vienna. when his royal highness wants to do something, a piece of theater, we are convening. what do we expect in opec+ in vienna this june? >> we expect a pretty frank discussion. it will be a talk about how to basically interpret everything happening in the market. their surprise oil cut which took effect at the beginning of this month has essentially done nothing to prices. we saw that briefs fight but now they are back below that level for brent and wti. going forward, how will opec+ respond now that there is more looseness in the market. there is more supply than initially thought, and demand is

not bouncing back to the degree they were expecting. perhaps there will be another cut by opec+. that will be something traders watch very closely. even if they cut, will the announcement do much to stop this free flow? that is the big question at the moment. manus: stephen, let's see what kind of instruction we get from the june 3-4 meeting. stephen, thank you very much. coming up on the show, markets are leaning towards this downshift today, when the ecb publishes its latest rates decision. we take a look at what to expect. how soft will they go? on bloomberg. ♪

tom: the ecb's latest rate

decision comes today following a two-day meeting in frankfurt . core inflation cooled in the euro area in april, while credit conditions tightened after the turmoil in the banking sector. for more, let's cross to maria tadeo outside the ecb in frankfurt. madame lagarde expected to announce a hike in rates once again. the question is, are those credit conditions, the tightening, how much work has that done for the ecb in terms of the consideration of the scope and scale of hikes? maria: you mentioned madame lagarde. let me let you in on a piece of information. my producer max spotted her. she came into work at 725:00 in the morning, up early, doing the bloomberg hours. the decision today, there is perhaps a definitive consensus,

but there is one that carries a lot of momentum going into the meeting because of the data you cited, the lending survey, the cautiousness that would feed into the banking sector. 25 basis points would be a downshift from the european central bank. when you look at the calls, deutsche bank sees 25 basis points. but it is a close call, because you could spin a lot of the data in multiple ways. those who say 50 basis points is on the cards will point to inflation data still being on except -- being on except of lehigh. -- unnacceptably high. but when he put it together, the european central bank will hike. it's most aggressive tightening cycle to date. but it will go 25 basis points. manus: beyond the pace of

hiking, madame lagarde learned to her peril when you go off script at a press briefing, it can be perilous. what other aspect will you be monitoring today? her press conference, or something specific? maria: by now we have learned that this is almost a twofold decision. when you look at the rates, you have to look at the implications in qt. that is the only way you get to a consensus decision at the ecb. madame lagarde was criticized for not being a trained economist. but one of the compliments is she is a good politician. she has a good ear to get to a consensus. if you go softer on rates, the implication is you would accelerate qt.

at the press conference, it will be interesting, while she will say banking jitters are over, secondly, will she repeat given the uncertainty, this is still a central bank that will look at the data. focus on the core and take it meeting by meeting. that forward guidance is not as explicit as what we were used to to. manus: maria tadeo in the ground outside the ecb in frankfurt. coming up, norway's biggest energy company equinor, it's numbers have had the tape. first-quarter numbers were despite lower oil and gas prices. the ceo coming up. anders opedal joins us on bloomberg. ♪

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manus: norway's energy company equinor has reported first-quarter profit, it is a beat up the back of higher production helping offset lower

oil and gas prices. anders opedal is the ceo. thank you for taking the time this morning. straight to the payout, special dividend and buyback, can you assure the market 2024 and 2025 is strong, and the buyback remains? what is the biggest risk to the buyback going forward? anders: good morning, good to be here. we had strong results for the first quarter. based on the production growth, as you said, very strong cash flow. so we maintained, as we said in february, a 17 billion u.s. dollars dividend in total with both an ordinary and extraordinary dividend, and share buyback. that for 2023 -- we will continue that for 2023. 2022 was a special year.

we have a strong balance sheet. we have said clearly we will use capital distribution as the tool to move to a more optical capital structure. -- optimal capital structure. we are not saying more about 2025 yet, but using dividend as a way to come to more optimal capital structure is the way we would like to go. tom: good news for shareholders in terms of returning cash to them. it has been great in the throats of the political opponents, those saying a windfall tax and a higher levy on energy producers is in. you can afford these taxes? anders: we can, we are the second-biggest taxpayer in the world. we pay both high dividend, very competitive, yield close to 30%. at the time, we pay taxes for

all the income from oil and gas. equally important, we are investing both in oil and gas, and renewables and low carbon solutions, enabling energy to flow in the future which is also needed. for us, it is important that the conditions are stable. we pay our taxes as we should, but we would like stable frame conditions such that we can continue investment in renewables. manus: you don't have stability in the oil price. it has collapsed 15-17%, gas prices have imploded. is this a low point in the gas cycle? what does it mean for liquids production? how do you balance going forward because this gas prices down? how much lower will you go and what is it being for the balance of production -- what does it mean for the balance of production? anders: it is difficult to say.

there is very little spare capacity, both in oil and renewables. we see that small changes in demand or supply is affecting rice's quite a lot -- prices quite a lot. we saw that a couple days ago with job numbers from the u.s., the oil price went down five dollars. europe in terms of gases in a good position at the moment. there is good storage capacity, there is a good influx of energy. meaning that europe will enter next winter in a good position. again, whether the weather will affect the production of renewables and gas demand, economic recovery in china will affect the competition for lng. there are so many parameters, it is difficult to predict. but we are focusing on making sure we are a predictable and

reliable provider of oil and gas. tom: you talked about the importance of interest is ready -- energy security. can you give us examples of what the firm is doing to guard against risks? anders: we are working closely with the authorities, both the norwegian military and intelligence services, working closely with nato. we have a lot of knowledge about the infrastructure, and how we operate. and obviously, nato has the capacity to guard the infrastructure. we are sharing information. we are making sure we are protecting our people, but also protecting the infrastructure. 9000 kilometers of pipelines on the norwegian shelf going to europe. it is a lot of pipes we need to

monitor. tom: anders opedal, ceo of equinor, on that earnings beat for the business trade and the outlook for the gas markets around europe. thank you for your time. manus: the pacwest story will drive sentiment. they are looking at all options, they have had several bidders. stocks settled a little bit. what is it, pause and pray from our guests this morning? i think we need to do more than pray. tom: u.s. futures up .2%. bloomberg markets europe is coming up. this is bloomberg. ♪

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anna: good morning. welcome to "bloomberg markets:

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