kriti: good morning. i'm dani burger in london and these are the stories that set your agenda. asia stocks in u.s. futures slide with disappointing earnings from meta-at the tech giant warns of economic uncertainty. it sinks past 150 per dollar raising the risk of intervention. banks are in focus this morning. morgan stanley names their next ceo. standard chartered drops on disappointing third-quarter results. bnp paribas earnings crossing this moment. we will break down the numbers and bring you interviews the cfos of both companies. we are live in athens where today's ecb rate decision is being made. president christine lagarde says the fight against inflation is not over yet. third quarter net income for bnp paribas is a mess at 2.6 6 billion euros in the estimate was for 2.7 5 billion euros.

trading revenue is slightly lower. it is 1.20 2 billion in the estimate was 1.0 5 billion. mostly it online but trading has been spotty across various banks. the cet1 ratio is 13.4%, higher than the estimate of 13.3%. loan-loss provisions, something in focus is actually lower than estimates. it is a bright spot coming in at 734 million euros in the expectation was for just under 860 million euros. to recap, on a net income basis, it is a miss but loan-loss provisions are lower for the bank. they are looking to equity and prime services revenue coming in pretty much at line. it is a net income figure that is biting. the cfo of bnp paribas will join us in one hour after 7:00 a.m. u.k. time on bloomberg markets. we will speak to the cfo of standard chartered and that will happen in less than 30 minutes. that is of course andy halford.

some disappointing results coming off the back of weakness in chinese real estate, taking provisions on the back of that. we will speak to the cfo at 6:30 a.m. and half an hour. in other earnings news we are getting volvo cars of numbers coming in. the third quarter ebit margin is worse than expected. the estimate was 5.4%. the increase their full year share of fully electric cars and they also see solid double-digit growth in volumes for the full year. the revenue, again, it is missing too along with their ebitda margin. you're getting other car result in mercedes. this is also a message. 3.3 6 billion euros is a figure. 4.1 billion was the estimates. let's break down these numbers and get over to oliver crook who

has been poring over them. at first blush, what is your take away from mercedes? oliver: it is an overall weaker portraits in the third quarter which is something that is not a huge shock for this industry and the world where you see a more difficult economic outlook. let's translate the earnings. the top line on the earnings statement is mercedes-benz group solid third-quarter results underscore resilience in a subdued market environments. let's translate that. the returns on sales reached 12.4%, below the year on year 14.5%. we have to get to the tables. revenue overall is down 1.4% when you compared to the quarter in the same thing last year. ebita is down and the revenue dipped overall i mercedes cars by 3.8%. overall, a much weaker quarter there. when we look at the outlook,

where we tried to figure out what the rest of the year looks like, overall growth momentum in the world economy is likely to remain rather subdued, they say, for the rest of the year. the restrictive monetary policy they say is a part of that and inflation. here's another interesting line. the geopolitical imponderables remain in other important factor. we see this from all the uncertainty going on in the middle east and from the last year and a half russia and ukraine. they are questions of chinese tensions which is key for mercedes which is their biggest market. sales there have also been struggling toward -- struggling. dani: that will be interesting when you speak with the cfo at 7:30 a.m. u.k. time. oliver, sticking with automakers, we had news overnight on ford and the uaw strike. his an -- has an agreement been reached? oliver: it has been reached in principle. this is a major development.

at the strike has been going on since september 15 or 16, more than a month and it was against all the big three. what we understand is it is 25% increase in wages, including cost-of-living adjustment which is inflation protection for paychecks. the workers at ford and only at ford are going back to work. they will vote on this deal on the 29th and it will take maybe a couple weeks to ratify. it does not include the 32 hour week that was originally demanded by the union and also details. it was about the future of the industry and how it bears on the battery factories that ford is planning in the workers there. what this does is puts a huge amount of pressure on stellantis and gm because the ford workers are going back to work and they will be firing on all cylinders. we heard earlier in this week there will be talks with stellantis and gm tomorrow but stellantis so far, according to the union, has the worst deal on the table. dani: oliver, thank you very much. we look forward to hearing you

throughout the programming. that is bloomberg's oliver crook who will be speaking with the cfo in one hour. more bad news for tech. in other earnings crossing the tape, st micro and they are lowering their fourth-quarter revenue outlook and now they are seeing a $4.3 billion. the estimate had been just below $4.5 million. they are lowering their full year net revenue off the back of that. this feeds into a rather ugly morning. there is no way to sugarcoat this. rather than earnings saving us from the drag we have seen because of higher bond yields, bad tech earnings are just contributing to the ugly morning we are having. the nasdaq yesterday, the nasdaq 100 lost 2.5%, its worst day of the year. hopefully we can show you these boards. bleeding into the asia session. msci asia pacific down 1.5% which has been dragged lower by the tech regions and the nikkei which is down in the kospi is

down too. you can see at the bottom, this is rare for early mornings to see the futures session of the nasdaq being so poor, down more than 1% after its worst day of the year last year. let me show you individual movers because meta is attributing to already a bad earnings from alphabets, setting the tone for this earnings season. the mets cfo susan li saying on a call with investors that we are very subject to volatility the macro lens cap -- landscape and the outlook is uncertain for 2024. there is a decline of 3.4% and then google takes another led lower yesterday after falling nearly 10%. the pain continues for the big cap tech. it was also a bad session yesterday for bonds. we had a difficult five-year option. that fed into concerns about supply. we are going to get numbers on future treasury auctions next week so there is a sense of jitter, tension in the market as we try to wrap our heads around

higher for longer and more supply. 30 year yields saw the brunt of the beating. those fell about 15 basis -- move higher by 15 basis points yesterday. we were looking at that continue today. the rate differential story is punishing the yen, now above 150, staying there for the first time in a while putting it in the intervention zone. we also have an ecb decision. we are seeing real weakness from the euro and it is all about dollar strength this morning. brent crude is also taking a breather after spiking more than 2% yesterday, above $90 after the israeli prime minister saying a ground invasion was being prepared. i mentioned the euro and the ecb and beyond that, president christine lagarde is the fight against inflation is not over yet. the ecb meets in athens today for the latest monetary policy decision and follows a string of weaker than expected economic data.

we had soggy pmi's. also growing geopolitical uncertainty in the middle east. let's get over to maria tadeo who is in athens for us. largely expected this market for the ecb to hold rates unchanged. christine lagarde says the fight is not yet finished, but is this a pause, this meeting? maria: well, dani, good morning. today is in athens the european central bank meets once a year away from frankfurt so it is a nice wish -- a nice switch. behind me is the greek central bank where the deliberations are happening this morning, leading to that decision. yes, the market is positioned for a hold so that means the european central bank should keep rates unchanged and in theory at least for the time being, that will put an end to this aggressive hiking cycle that we have seen from the european central bank. we have had 10 negative hikes, more than 50 basis points a tighter policy. all of that -- more than 450

basis points of a tighter policy. the context in which the meeting is taking place, we have had data this week pmi's pointing to an economy that cannot catch a breather. the european economy is flirting with a recession. we had a lending survey and geopolitical tensions that are playing at the head of the ecb who alluded to this and implications of the war between israel and hamas and the implications especially when it comes to energy. i should point briefly, dani, you mentioned comments by the head of the ecb which he made yesterday suggesting the fight against inflation is not done but what i am being told is that was a prerecorded interview that did not really signal any policy direction for them. we will have to wait until the announcement gets made with the market today is very well-positioned for the european central bank to keep rates unchanged. dani: that is bloomberg's maria tadeo in athens.

we are going to bring you the ecb decision at 1:15 p.m. london time and that will be followed by president christine lagarde's press conference in athens across all bloomberg platforms and tv on your terminal. let us not forget the big banking news overnights. morgan stanley has selected ted to pick us is next ceo. the bank says pick aboard and be elevated to ceo in january. he is credited with spurring a revival in the trading business after the 2008 financial crisis. he beat out two other ceo contenders including the copresident the investment management business. don't miss our double interview coming up this afternoon. bloomberg's sonali basak will be hitting down with both james gorman and ted prick in new york at 3:30 p.m.. as we had to the break, let me

give you a quick snapshot of risk. it is all about the dollar today. assets struggling to find any strength versus the yen which crosses into 150. we are in the intervention zone. aussie dollar and kiwi dollar are taking a beating, down by at least a quarter of a percent. this is bloomberg. ♪

dani: welcome back to "bloomberg: daybreak europe." president biden and israel prime minister benjamin netanyahu have discussed efforts to your the release of hostages and boost data deliveries into gaza. biden asked israel to delay a ground invasion, but he sought no assurances on netanyahu. as biden well, i have indicated to him that if it's possible to get these folks out safely that is what he should do. that is their decision but i did not demand it. i pointed out to him if it is real, it should be done. dani: joining us for more is bloomberg's senior editor bill faries. we had that from biden but also impassioned lines from netanyahu about israel fighting for their existence and preparing for an invasion. that itself sent oil higher. where do we stand?

does an invasion seem imminent at this point? bill: right, well what i think president biden is trying to say that the u.s. does not have any veto power over what israel does, but the u.s. is obviously still interested in trying to get hostages freed if possible and to also get foreigners who are trying to lead gaza out -- leave gaza out. by mr. netanyahu emphasized that plans are still underway for a ground invasion. we saw justice in the last hour or so, the israeli defense forces confirming that there had been a small incursion of their troops and tanks in the northern gaza. we think these incursions have been happening for a while in they help lay the groundwork. they target infrastructure, perhaps pick up intelligence and go after key leaders. those forces have since returned unto israeli territory, but israel certainly seems to be going forward with preparations.

they just have not received any direct order about when an invasion should take place. dani: well, if we can shift the focus to washington, we finally have a new speaker of the house. it feels like it has been a saga that has lasted years. it has literally lasted weeks but that is how it felt. especially to the european audience, mike johnson is not a name they will have heard of. what do we know about him and various issues, especially as a -- as it pertains to support for israel at this moment? bill: actually many as in u.s. politics will be super familiar with mike johnson either. he is from louisiana and he will be the most conservative house speaker of the modern era in washington. he was someone who helped sign on to efforts to delay confirmation of the 2020 election results. he is seen as someone who was an

ally of former president trump. in terms of israel's support in the house's priorities know that it has a leader, i think we will quickly being seen as be seeing resolution of support for israel along with possibly some kind of an aid package although the politics in washington make obligate that. you have many republicans and a large number of democrats who would like to see an aid package that goes to ukraine as well as israel. there are of course, republicans who help lead the defeat of the previous speaker nominees who don't want to see additional aid going to ukraine at this point. so that is something that speaker johnson will have to work his way through, but i do think now that the house has a leader, there will be an effort to try to quickly get some additional support to israel. dani: yeah, and let's see how quickly they can also get rid of the debt drama, the shutdown drama hopefully that comes around, as it will come around quickly.

there can be resolution of that as well. bloomberg's bill faries. elsewhere in d.c., bloomberg understands that president biden will meet china's foreign minister in washington tomorrow. wang yi will hold talks with secretary of state antony blinken and jake sullivan. sources say it biden and xi jinping could meet next month as the u.s. hosts an economic summit for asia-pacific nations. let's check in on how asian markets are faring because it has been a punishing site -- session. avril hong is in singapore for us. no relief following that of the day the u.s. yesterday. avril: ugly day translating into a relentless slide in the asia-pacific session. the regions benchmark is down by 1.5%. we are seeing a hovering near its weakest level since november last year. those declines are with the

japanese and south korean stock benchmarks which are really steep and above the higher u.s. treasury yields. as you alluded to, u.s. tech earnings are turning out to be a negative rather than positive driver for stock markets in the region. so much so that that is all eclipsing any signs of optimism that we are seeing that the chip market is bottoming out. sk hynix reported earlier and it showed a slowing in the decline in revenues after similar reports. there were early reports from tsmc and samsung electronics. it adds another negative riskier in terms of what we are seeing out of china reportedly expanding its probe into the property sector to include financial institutions now. among those investigations according to the wall street journal report is the former head of the bank of china, one of the country's largest lenders. this is, for context, just coming a couple of days after china announced dimness plans to reinvigorate the economy. -- stimulus plans to

reinvigorate the economy. that is not helping the hung saying after receipt trading resume after the lunch break. let's talk about japan because we have the renewed rout and global bonds putting upward pressure on the yields in the country. that is complicating the equation for the bank of japan so much so that bank of america sees a higher chance that it will tweak yield curve control when it meets next week. the base case increasing the ceiling on the 10 year yield to 1.5% from the current 1%. despite what we are seeing in the upward trajectory of these japanese yields, it is still not enough to overcome the gap between the u.s. and japan on yields. we have seen how the yen has been languishing already reaching 150 during the new york session, gaining ground against the greenback, as asia session came online. now popping up above 150.4 once again. we are certainly on intervention much here.

dani: the mof has emphasized it is not about level but the speed of the weakness. that is bloomberg's avril hong. coming up, we will take a look at the european union's plan to spend billion's of euros on hydrogen projects. some green groups fear the investment could backfire. we had the story for you next on bloomberg. ♪

dani: welcome back to "bloomberg: daybreak europe." the eu's backing its commitment to the hydrogen market by unlocking billions of euros of funding for cross-border infrastructure projects. but some green and worried the investments could actually end up locking in fossil fuels. joining us for more on this is bloomberg new energy finance reporter.

the eu will be holding its first ever hydrogen auction next month there has been so much progress made with solar and wind, why even focus on hydrogen at this point? >> hydrogen is a chemical that we already use and heavy industry to produce fertilizers. to fully decarbonize our economy and the eu needs to do that because at the 2050 net zero goal, we need to decarbonize the production of hydrogen as well. on top of that, hydrogen reaches decarbonization where electrification alone does not go to. ships and planes could run on hydrogen mixed goals in the future and you could decarbonize those with that which is why we need hydrogen as a clean molecule for all of these sectors. dani: that sounds fantastic having planes running on that and cars. what is the reality right now? how far a week from the future? adithya: very far removed feared governments have announced targets until 2030 in just 2% of

the announced projects in the latest outlook have taken a final investment decision to actually produce clean hydrogen. dani: if there is a mismatch between reality and ambition, what can and what are governments doing to close that gap? adithya: policy support is rising for hydrogen so we see governments have strategies across the world and these strategies, subsidy programs to incentivize the nascent hydrogen sector. what we have seen as subsidies for hydrogen have almost quadrupled since 2020 12 over $308 million that have been committed to the section -- the sector between now and the next decade. the largest share goes to the u.s. thanks to the inflation reduction act which has tax credits which will support hydrogen production both for carbon capture storage and electrolysis going forward. that is $130 million that the u.s. has committed. we will see much more projects going ahead. dani: we have less than one minute but yes there is ira but

china has been the big producer of a lot of green tech. is that still the case? adithya: in some ways yes. the eu has a dual town feared they are not the cheapest producer and they want to establish technology leadership but china is rapidly expanding manufacturing capacity of electrolyzers, the core equipment needed to produce green hydrogen. 60%-70% of the manufacturing capacity in china. chinese technology is not being sold to europe because they don't meet the product standards yet. there is a real challenge that needs to be overcome in europe only to face over the next few years. dani: that is adithya bhashyam . coming up we will talk about coming up we will talk about standard chartered. sha it's an amazing thing

when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

dani: good morning this is bloomberg daybreak: europe in london and these are the stories that set your agenda. asia stocks and u.s. futures slide disappointing earnings including meta-the tech giant warns of an uncertain economic environment, the end sinks past 150 per dollar in the intervention zone. thanks in focus, morgan stanley names ted picked as its next leak -- ceo standard chartered drops on third-quarter results while dmp also misses net income. we have our interview with standard charter seat eo on deck and live in athens where today's ecb rate decision is being made. christine lagarde says the fight against inflation is not over yet. we are having some volkswagen earnings hitting the tape so bear with me as i walk through them. they have not changed their fill your outlook for vehicle deliveries is still see 929.5

one million units. they still see their full year revenue at 10% to 15% growth so that has not changed. there third-quarter revenue figures coming in at 78.8 billion euros so steady as she goes is the result from volkswagen. we should also be getting numbers from danon the big consumer goods company. they have raised their full year for sales guidance to sit -- from 6% to 7% so that is the new range. the estimate had been for just under 6%. third-quarter sales, a big beat you can see why they raise the number. six point 2%, the estimate had been for 4.6. interested to dig more into this if they are able to keep raising prices on this. again good results from danone perhaps good results as well from volkswagen.

let me quick with markets check. it was a punishing day yesterday and it is continuing to be a punishing day this morning. we had nasdaq futures selloff early to .5% yesterday, the worst day of this year. that is continuing easily through the asia session. it has set the tone for big tech earnings which has set the tone for this market. nasdaq futures, those continue to selloff. rarely do we see declines of more than 1% at this moment. then it we also have s&p and the overall index down, in terms of asia some of the worst-performing things are the kospi. the nikkei, really tech heavy indexes. on that note let me show you what big tech is doing in the post-market session. what happened while you were asleep, we had met a earnings warning of this economic environment, warning about 2024. though that slapped share prices down 3.4%. alphabet falling tool. let's get to our next earnings conversation, it has been a

tough quarter for many standard charter shares are slumping in hong kong on third-quarter results that missed estimates. this is the asia focused lender took on charges related to chinese real estate and bank investments. stan charter cfo joining us now. i know it was a challenging quarter but when it comes to china is there a light at the end of the tunnel? can you say with confidence this looks like a bottom? >> if one stands back the performance overall for the group we are 15% up on our topline year to date. we were 15% of last year. we have made almost as much profit in nine months this year has been made in 12 months last year so the overall context is very strong. we did take some charges with regard to an investment in china but overall actually our performance and china has been pretty resilient. income, we have been flat fish but the activity we have done supporting our clients from

outside china is up nearly 50% so we have seen a lot of activity going on there. one particular sector, the commercial real estate sector has been problematic. not just for us but everybody. we have taken some charges in that regard that the overall outlook we think over the next two or four years is very strong. dani: is that how long it will take to see that upturn in commercial real estate, two years down the road kind of timeline? andy: it is difficult to call i think for a while people had been hoping the bottom have been reached and there's been a number of policy decisions taken by the government. at the moment it is still stabilizing so probably it will take longer. dani: have you seen that filter through the current quarter at all, some of those actions? andy: they have had some effects, it has slowed down quite a lot but to see it pick up will take a few more quarters. dani: you mentioned the overall context is good, happy with those results. and you did an ounce last earnings a $1 billion share buyback. i noticed we did not get any

guidance when it comes to returning shareholder capital, do you see any scope for more share racks or difficulties in china commercial real estate may be a reason to exercise caution? andy: we said a while ago that over the three years, last year this year and next year in total we aim to return $5 billion to shareholders. we announced already for million dollars and we are just over halfway to the period so the buyback you refer to is part of that. that is near-complete. we did another billion dollar earlier in the year, that is complete. the rate of return of shareholders is happening at pace and ahead of the schedule probably that we indicated a while ago. dani: more to come though? andy: we will see. dani: i love that stay close guarded, that is fine. when it comes to wealth management i know you did say there was some continued strong affluent client onboarding i am interested to know what region that is coming from? china, southeast asia? andy: it is quite broad-based

probably slightly more in northern asia but we have seen good growth outside of northern asia as well. we are nearly twice the number of new clients signed up this year compared to a year ago. at the assets we have under management have grown significantly during this period as well so we have seen a momentum picking back up. dani: you are still short of your target, perhaps about $70 billion when it comes to your wealth target for 2024. can you still hit that? andy: we are working very hard on the wealth side most of the targets we set we are on track for in the wellsite overall has had a good run. a couple years ago it was a bit subdued but now it is picking up nicely and over the long term there has been a great business for us. dani: is it fair to say your targets have not changed for wealth management? ok fair enough i know you're going to tell me you don't care about the individual share price but i have to bring it up, we are seeing shares decline in hong kong nearly 7%. at the most in seven months.

what do you say at this point when you have a set of results like this that you see such negative reaction? what you say to investors right now to calm them? andy: i would say look at what we are saying about the outlook, it is exactly the same as what we are saying before. we still think we can get the same topline growth this year, we still think we can get the same topline growth next year, we still think we can get up to double digits this year at 11% next year. there will be a lot of focus on the name which was weaker today but it is one component of many. the rest of this is really performing strongly. dani: i know we are looking forward here so i hate to do this but i want to look backward, almost a year ago you had investors and analysts queuing up to quiz you about some of your interest rate hedges in the miss on that. we are a year off from that. and the rate environment is still so unknown, so uncertain. not to repeat past mistakes how

do you position now, what type of rate environment are you preparing for? andy: some of the hedges we went into two years ago now proved to be ill-timed and that was unfortunate. about a third of those have already rotated off. another third will rotate off fairly shortly so the vast majority of the pain on that front has now gone. we are looking very carefully at re-hedging at new rates because they are clearly so much higher today than they were two years ago so over a period of time we will put hedges back in place that are at rates that are higher. dani: so higher for longer, is that right? andy: it is it's making the most of the fact that rates are higher in giving us downside protection. if they reduce later, but at the end of the day rates are much higher now than they were two years ago. dani: will this be your last set of results with us? andy: they might be. dani: it has been almost a decade with you at standard chartered. it was a baptism of fire when

you first joined in 2014. coming from the world of verizon and vodafone, what an introduction to banking. i have to wonder if you were to speak to a cfo today who is also looking at a similar career change into banking, would you recommend they do it? is banking still as fertile of a ground as it was in 2014? andy: i would. i think the variety of challenge and particularly in an international bank like ours is absolutely fascinating. you are right the early days were difficult but overall i would definitely advise somebody, it is a very diverse sector. it is very broad and particularly with the geographies we cover it is a fascinating business. dani: you are leaving at a very tough time for the business, with a different set of challenges. higher rates, uncertain inflation, difficulty with chinese growth. as you move to advisor and eventually retire, what would be your advice to those who are

saying goodbye to that are running risk? andy: i would say stick the course, i think these are long-term businesses where consistency is important. the business will be back up to roughly levels of profitability it was at a while ago. quality of the balance sheet is much better and that is not an accident. that takes time, the risk team is working very hard on that. the quality of the client base we had is very good grade i think this is about belief, it is about pursuing goals, sticking the course. at the bank is in a fantastic part of the world. dani: what about banking as a whole because we had a serious consideration of leverage. soon hopefully you won't have to worry about this but what do you think are the biggest underappreciated risks? andy: i think the banking sector is clearly a tough sector. it is one that does get moved around particularly by geopolitical events and that is always going to be the case but

at the end of the day it is satisfying a basic human need. we all need to move money around pay money store and invest money. so banks will be in demand for decades. dani: we could have a conversation about this for an hour so i hope this is not your last time with us. thank you so much that is andy the cfo of standard chartered. coming up we're going to talk about the ecb, it is preparing to meet in athens for the first time since 2018. christine lagarde says the fight against inflation is not over, we'll discuss that next on bloomberg. ♪

dani: morgan stanley has selected ted pick as its next ceo succeeding james gorman after 14 years in the top job let's get the details with adam haigh.

for those who have not heard of him, who is he and why pick him? i'm going to do it. why pick him? adam: ted pick is no surprise to people who know morgan stanley he has been there a long time, part of three decades and what he has done in that time and one major reason he has been chosen is he has a good track record of going into businesses understanding what they are and then rebounding them. let's look back at 2008 during the financial crisis when he led the trading business. he had to undergo quite significant surgery to that business and it came out the other side of the financial crisis in a better position than where he started. in 2015 he did that again with the fixed income business. not afraid to make big cuts, not afraid to make decisions. that is a key attribute that will serve him well, one of the

big challenges is how he continues this growth for morgan stanley. it has been the huge push that gorman has made in that area of the bank and it is contributing so much more to the profitability of the firm than it has in the past so whether he can continue that growth trajectory is a key thing to watch. but as he told us in his first interview since being appointed ceo, he said there will be no changes to the check -- strategy. no big shifts coming up. he is trying to say things will not shake up too much. dani: at the same time speaking of not shaking things up gorman is going to stay on as executive chairman. how does his legacy -- how is his legacy judged if he is still sticking around? adam: i think in a sense he will get a bit of a break but he is still going to be there and one

key thing for his legacy is that financial crisis period of 2008. that is probably what he will be most remembered for. just how much uncertainty there was winds around him were going under, he was able to navigate that whole crisis. and then more recently with some crisis areas such as the capital management scandal when morgan stanley came out as one of the biggest u.s. banks to be hit under that scandal, they were couple episodes were gorman managed to navigate the bank through some sticky periods. i think that is one key thing that people will remember gorman for. he got the bank through some really tough periods. and ultimately left it in a far stronger position than when he started. dani: thank you very much, that is adam haigh on the latest at morgan stanley. don't miss our double interview coming up this afternoon, we're

going to be sitting down with james gorman and ted pick live from the morgan stanley headquarters in new york. don't miss that at 3:30 london time. over to the ecb, central bank president christine lagarde says the fight against inflation is not over. they meet in athens for their latest monetary policy decision after a string of weaker than expected eco-data. growing political uncertainty in the middle east as well, let's get over to maria tadeo in athens. is today a whole? maria: that is the big question when you look at the market action, the pricing in of this decision. they do believe it will be a hold so the european central bank will keep rates unchanged and that means at least in theory that would put an end to this aggressive hiking cycle that we have seen from the european central bank to tame inflation. just for context we have had 10 consecutive hikes, more than 450

basis points of policy coming from this bank. a lot of this we have to put in context in a week in which we have had a number of elements you could say there is a strong case now to hold, the pmi's, the economic data still shows this is an economy that cannot catch a breather. the european economy still flirting with a recession. we talk about the lending servi -- survey they came out from the ecb and the geopolitics. this is a central bank that wants to focus on the monetary policy but at this point no one can escape the geopolitics. the head of the ecb alluded to this in an interview where she said there are repercussions from that asserted in a war between israel and hamas. especially when you look at energy prices. all of this put together you could argue that they are heading into a hold. nothing is official until she makes it official but that is the position going into this meeting that has taken place in athens. what you see behind me is the greek central bank.

dani: beyond this policy decision which as you say is plagued by uncertainty. what will be in the focus for this press conference at a time when markets are not pricing in hikes and instead of focusing on cuts to come in 2024? maria: to me there are two fundamental things going into this press conference. if you assume, and the market has definitely and priced in today, rates on hold and unchanged, the european central bank stops hiking, the question is how to they frame it. how to they package this hold, will they still say this is a product of the uncertainty of a particular context? are they willing to say they are at peak rates? this is a central bank that has avoided that conversation up until now. or will she say there is a hold because they are now structural elements to pause. that would mean the central banks leave the monetary policy is not working, inflation is coming down in the conversation

fully changes into a debate of higher for longer. i presume the issue of cuts is one area that they do not want to get into. did you know -- do not want to participate -- precipitate that conversation. if you talk about hold this is a balancing act that takes us into the balance sheet. the program of reinvestments, they say will continue to run until the end of 2024. or will they say they are now open to changing the echo --? dani: thank you very much maria in athens. we will have coverage throughout the day of the ecb decision at 1:15 london time followed by christine lagarde's press conference. this is bloomberg. ♪

>> it is hard to sugarcoat how

tough of an earnings season this has been for tech. meta-shares had slid premarket more than 3%, the cfo warning of an uncertain economic environment. there are some silver linings, ibm did post better than expected sales numbers, but really being overshadowed this morning by the tougher earnings from meta-and from before it alphabet. let's get to matt from our intelligence team. i guess i really want to distinguish how bad these numbers were for meta-and just an overall kind of sour tone on big tech right now. matt: actually the numbers that met at reported for the quarter are pretty good. he saw a revenue growth of over 23%. it was almost a doubling of the rate from the previous quarter and brand spending on advertising in a big way and i guess this kind of core instagram and facebook platforms starting to show growth in impressions again so encouraging signs in the near term.

i think with spokespeople was the commentary they made about next year. it should not be much of a surprise they said the outlook is uncertain therefore they can't give a good guide on what is going to happen to revenue so that kind of really soured the tone. i think the other issue we have going on here is that they continue to spend an enormous amount of money on the metaverse. without any obvious sign of any return in terms of revenue and it does not seem like that's going to come anytime soon either so i think going into 2024 with this combination of weaker topline because brands cut back on advertising spending and continued billions of dollars a quarter losses on the metaverse. then there's going to be more questions asked. dani: then we will get amazon earnings today and as we have been saying investors have been brutal. they have been picking apart anything that looks negative. what does amazon have to do, which i should say it sold off with the rest of big tech yesterday. to they have to do to climb out

of this sentiment whole? matt: i think it will come back to what they say about cloud, it has been the big focus for google and ibm. and the same for amazon, a leader in the cloud market. i think if they give a positive indication that will be really important. that's why they make all of their money, i think the outlook they get for that is going to be key and clearly ai is going to feed into that for demand. our corporate's continuing to spend healthy on i.t. budgets, the big question for them, on the periphery you have that relatively small but growing advertising -- advertising business which may help sentiment two. dani: do we care about ibm beating with all this negativity? matt: not so much, they were -- if you elements of caution there about the outlook. cautious spending on i.t. budgets is still a big question they are in the sweet spot of managing hybrid cloud and they

are pushing this new concept of hybrid ai so i think they are balancing the relative opportunism and threats pretty well. dani: thank you very much it will be interesting to see how amazon plays out today, bloomberg intelligence matt. let me give you a check on what tech related assets are doing because the bruising session continues after having its worst day of the year the nasdaq futures session continues to decline more than 1%, both nikkei and kospi are being led lower by tech stocks to. both declining at least 2%. overall that means a tough day for asia, the msci asia pacific is trading at its lowest level in nearly a year. also a weak option yesterday shaking things up, this is bloomberg. ♪

tom: