tim: good morning, these are the stories that site your agenda. ubs smashes expectations, we

will hey from the bank ceo. cloud sales are high, amd slumps and harris warns trump will bring chaos and division. the latest on the presidential campaign. happy wednesday. upbeat from ubs, european

futures up after modest losses, nasdaq composite hit a record high, strength coming through, massive day for the u.k.. details on cuts, potential cuts. it has been the worst month for u.s. treasuries in two years. the buildup to the vote with the election leading to a selloff and the pound is in focus.

could be some volatility and watching gilts. bitcoin close to record highs on expectations trump could win the election. gold adding 3/10 of 1%, the yellow metal. 15 minutes ago ubs posted results that beat expectations. let's bring in jeff black. good moaning, what stood out to you. jeff: the estimates were too low. really solid quarter, lending

income has held up with falling interest rates and also ubs did well, investment bank dealmakers did well, global wealth did well and non-core credit suisse stuff posted in low loss, headwinds. tim: talk us through those headwinds and where were we in terms of building the business? jeff: on the headwinds is the theme, interest rate reductions

beginning to feed through simple as that. the bank did warn about risks from u.s. elections, it could be good or bad. bs is ahead of schedule, moving clients on their systems, they've done large packs of that it be finished next year so solid progress. tom: indeed. we will hear from the ubs ceo

allete 7:00 a.m. london time, so stay tuned. we got the chemicals giants, basf with exposure to industrials and autos in line with estimates. the redhead, they expect to reach the low end of their earnings foe cast range and in terms of earnings, modestly above estimates in line with expectations. let's cross over to asia with avril hong. avril: yeah, we are seeing

chinese equities week on a day when japanese equities are the outlier capping declines. on the benchmark names and chinese or rather japanese yen, a story of weakness. there is the leo j guidance from -- boj guidance from ueda-san in terms of currency expectations. china is the weakling. csi is down, flip the board. it erased gains, pulled away from the peaks to do with the stimulus, optimism fizzled out.

chinese authorities are mulling stimulus, the number that had been floating around was part of the package so cause for disappointment and then csi 300, more than half of them have reported, let's flip da board. next week is not just about the u.s. election, there is china's top legislators meeting and two week implied volatility shot above what we see on one yeah so currency traders are expecting a lot. tom: important to flag that event.

avril, indeed. now to the tech story, dazzling investors as alphabet beats expectations. amd slumping after missing been a sign that sales are growing slowly. let's bring in annabelle droulers. the most recent disappointment. >> speaks to the -- the -- the -- the scope of expectations because we soar amd doing better, $5 million in sales from aai accelerators put exactly

what disappointed came down to the forecast expecting 7.5 billion in revenue. close but not good enough and you saw a slump. it -- it -- it -- it -- chip growth versus the -- the -- the -- the main ones and amd continues to play catch up. tom: they would be hoping to sell into alphabet and earnings were a solid beat. what stood out to you?

annabelle: exactly. the cloud stood out but you think about infrastructure and there is -- there is amazon, alphabet. the pie keeps expanding so companies can gain a larger share. ravinia better than what had been projected and a beat. across the board we saw strong numbers coming through, how long will optimism drive growth? this came up in the earnings call. they said we are seeing great efficiencies, looking at

headwinds from cost, big question is how do they manage. 17% versus 10.4%, clearly making a lot of money. tom: breaking down earnings from amd and alphabet. to the u.k. and economic forecast a pivotal day, rachel reeves with her package of tax hikes will set the tone for the rest of the decade, the rest of the decade. lizzy burden, remind us of changes we are expecting?

lizzie: leyba made some major promises. no tax hikes on working people whoever they are and we are expecting to see how far rachel reeves is willing to stretch this whole. expecting revenue including a rise in contributions for employers which would raise 20 million pounds. labor had no plans to increase taxes but the point is rachel reeves really wants to make sure spending is covered.

for the longer term she laid the groundwork for a change, 70 billion pounds over five years and the question is the extent to which she can grow the economy. thom: whatever they say will be consequential. that leads to a question about the bank of england given their next meeting. lizzy: we have to ask whether the hammering they took was the extent of it? we do not want a repeat. it comes back to whether they

see the budget growing or squeezing. economists reckon that there will be fiscal loosening, boe will take rates lower slower despite andrew bailey dabbling in this prospect, interesting. leyba could frame this as they need to stay in office and they need a decade of renewal. tom: we will address that hammering may have had. indeed. special coverage of the u.k. budget from 12:30 p.m. u.k. time, lizzy burden will be across all of that so stay

tuned. the count down to the u.s. election ahead of next week's vote, the latest next. this is bloomberg.

tom: welcome back, kamala harris argued a trump presidency would be steeped in chaos. harris: we know what trump has in mind. chaos, division and policies to help the very top and hurt everyone else.

i offer a different path and i ask for your vote. tom: she spoke at the same spot that led to chaotic scenes. let's bring in derek wall bank. what challenges does she face? >> it's a razors edge with seven states that will sort of determine who will win and polling averages have every one of them very tight so it is hard to say which way this goes. you can read good things in, voters are in force early in

georgia, nevada, but harris is polling better in michigan and seeing a wide gender gap and when you say that women tend to vote more than men so women voting more for terrorists, men voting for trump, that is probably good news so you can kind of get a little bit either way. to call. >> what is the latest on trump? derek: if you ask me which one

state do i want to know the outcome of it is pennsylvania. hard to see him when if he does not win, not impossible but very hard. trump is on the defensive, he had a rally where several comments made by his allies have, under scrutiny. it is not a small number of people in florida in new york so

trump has been on the defensive and there were comments early in the morning by joe biden where he called some of trump's supporters garbage. that is something republican ones have tried to turn. so right now it had been on harrises terms and that rally was well attended and will be one where she hoped to set a

contrasting tone with trump. tom: derek wallbank with a granular take indeed. bloomberg reporters will be participated in a. you can email questions to bloomberg qoa at bloomberg.net and watch it on the terminal and the bloomberg.com. standard chartered tops estimates and vows to return a billion dollars by 2026, and upgrade, we will speak to the cfo indeed. this is bloomberg.

tim: u.s. job openings fell to the lowest since 2021. running counter to september and other data that point to a strong labor market. let's bring in valerie, talk us through what you're reading is. valerie: market was relieved, we've had a string of hot dater, this was the first one on the downside. a big miss, we expected job openings up and the data is

volatile and we have a private payroll number but flip if you flip on the board we got consumer confidence data, the largest rise since 2021 so uh the largest jump in three years, conflicting stories but during these releases we were focused on the labor yields. for 24 right now. u.s. gdp, and a hint of third-quarter pce.

tom: giving us some clarity, thank you. standard chartered rallies is after the top estimates and ramp up buyback plans, we speak to the c f o. terminal users are messaging us but we would like to hear from all of you. pick the qr code to tell us what you would like to see and anything you. feedback will be used it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw!

we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

tom: i'm tom mackenzie, dese are the stories that set your agenda. we will hear from the ceo and a tale of two fortunes, cloud sales are sky high and amd underwhelm's. rachel reeves is set to unveil billions in tax hikes, first labor budget in 14 years. first quarter profit coming in well below estimates, willis profit margin since the pandemic

in terms of revenue but operating profit a huge miss. 3.6 percent hit, estimates were four point free. they will use this to push their case to close three factories. conversations will continue, negotiations continue, facing competitive threat from china,

that story, consequential. gdp dropping, court on court, a increase of gdp growth year on year, surveys had been for 1.2%, slightly better picture. let's way up the earnings story, european futures lower. nasdaq futures adding points.

let's flip the board. a little bit of movement after a challenging month. bitcoin up, gold up. standard chartered shares go up after topping estimates in the f ird corner -- third quarter. joining me is the cfo who joins me in the studio. thank you for your time.

8 million by 2026 is up from a previous target. what gives you that confidence? diego: at least 8 million, more than eight. tom: double double digits, is that possible, double digits? diego: we have returned to our shareholders between dividends and buybacks and what gives us the confidence is the strength, top line up 12% up over 30%, 71,000 new clients, 10 billion of new money attracted gives us

the confidence but also our target return on tangible equities toward 13%. tom: what is driving that growth? where do you see opportunities? diego: secular trends and clients so the growth in the heartland of standard chartered, asia, africa, they continue to unfold. $80 trillion, clearly very powerful. we offer wide spectrum and we

cater to our cool finance. tom: how they could this get? diego: it is growing and we say the rate of growth is a thing of the past. so the that is really the heart of our focus, a doubling of our

plans, we don't disclose the number that we have but it is 10% a year, we offer a very interesting proposition and, one of the few banks in the country's where we operate. tom: fit for growth seems to be paying off, cost cutting is expected to accelerate.

where are you prioritizing reduction of costs? >> you've seen our cost growth so we are good at controlling. fiscal growth is transformation, standardizing, making it easier to work at the bank so it is an investment. it is a program that will create efficiency. for this year we are going to be investing 200 million and next year. tom: talk about china real estate exposure, you took a

small impairment but the challenges there. when do you see a turnaround? >> china with the meeting of the mpc will be seminal, it is early days but we see it. when you think about our business never forget it is less affected by growth and two thirds is affected by the flow

of capital. diversification and changes very much place to our strength. tom: you started to see breaches of lending demand, does that offset a lower rate environment? diego: it is the big interplay between the pressure in the growth of demand. we've added 5 billion of customers in the course of this year but it is lower than what is the natural growth of demand, 5%, to counterbalance the impact.

tom: indeed. diego, the cfo, standard chartered upping the buyback expectation. the stock is up and we are going to stay on banking and bring you sergio on an earnings beat's. that's at 7 a.m. london time and tomorrow we have an interview with the cfo and chief executive, m and a will be part of the conversation. volkswagens margin shrinks to the lowest since the plandemic. we discussed next. but first bloomberg terminal

users, we would like to hear more, we would like a survey online. click the qr code and tell us what you would like to see more of. your feedback will be used to make the best programs week possibly can. plenty more coming up. this is bloomberg.

tom: volkswagens third-quarter margin shrinking lowest since the pandemic. walk us through the is consequential numbers.

oliver: they are intending to close three factories and cut jobs and pay. here's what we've got, sales were down, operating results were down and when you focus on margin that came in at 3.6%, down from 6.2% and when you dig in because they have the core these cuts where there is a huge cost problem came in at 2% and to contrast that we see poor margins in tesla margins the other day were in at 17% and

sales had an increase. down in western europe and this is the focus so the market is braced, this is exceptionally bad when we have volkswagen beginning negotiations with unions. tom: this highlights the urgent need for efficiency gains. to what extent are they symptomatic of the economy? oliver: to a large extent, expecting another quarter of contraction, two consecutive quarters which triggers a technical recession but the

economy will contract again, two years of contraction. that happen one time since the fall of the berlin wall and we are expecting inflation to pick, pick, pick back up. we are expecting inflation to go up to 2.1%. when the numbers cross we will be digging in to see where the pressures are because we've seen consumers pulling back in the german economy. tom: what is the challenge around trade? oliver: those are alive so this is something we've been talking about for a year. chinese subsidies for dvds and we have tariffs officially

imposed on chinese auto markets that range from 35% and then down to tesla which unfitted the least, 8% tariff. what will happen next? continuing negotiations between china and the european union failed and the question will be a retaliation. there are investigations toward the another lens, denmark, germany so when will they hit back? tom: oliver kreuk with a big mess from vw indeed. stay with us, a preview of the

earnings story. this is bloomberg.

tom: welcome back, alphabet delivering on cloud numbers premarket. gains of almost 6% for the parent company of google, investments paying off and when it comes to search it is less challenged been some expected. executives will continue to ramp up spending on data centers and chips. markets are rewarding the top

line. the focus will be on microsoft as your -- azure, focusing on implementation of ai in services and software products. this is the estimate of 64.5 million. meta-have a hardware play so look for innovation on headsets. revenue estimates of above $40 billion. are they able to monetize?

let's look at the budget, drumroll leading up to this consequential moment for rachel reeves. first budget in 14 years. there will be eight tax hikes and spending cuts, changes to the fiscal rules. we watch sensitivity in the gilt markets. special coverage from 12:30 a.m.. it just a few minutes is the opening trade. stay with us, this is bloomberg.

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>> good morning from london. one hour away from the opening trade. big beat for ubs with net income

almost double. our interview in a few moments. sky high cloud sales and amd slumps has estimates underwhelm. rachel reeves unveils the first budget of the labor government and a major package of debt rules. tom: banks are coming through with decent beats, all about alphabet and the u.k. about the budget. softness yesterday and in the u.k. the ftse looking to lose 25 points. u.s. treasuries are set for their worst month in two years.

euro-dollar at 1.08. the countdown to the opening trade starts now. anna: welcome to the program everybody. this is "bloomberg the opening trade." we are deep into earnings season in europe. that means we have an interview with the ceo of ubs to bring our audience. this was an incredibly strong set of numbers. better than estimated in terms of the wealth management unit, the investment banking side confirming cost savings, concern around the macro outlook but broadly a strong set of numbers. >> smashing net income for the third quarter. one point 43. our team on the ground in zurich saying the integration of credit suisse is ahead of the timescale

, so that's a positive as well. and in terms of cost savings, looking at 7.5 billion u.s. dollars for the full year of 2024. that is significant cost savings for this business. anna: really interesting the speed at which they were able to integrate a business the size and scale of credit suisse. yesterday listening to the chairman at an event, he was saying eventually they want to buy a u.s. wealth management company that would help them better compete in the united states. he was saying in the process it would take three years to digest credit suisse, which seems extremely escalated or at speedy timescales. let us focus on the numbers from ubs. here is the ceo, sergio ermotti. >> if i look at the macro and geopolitical front, u.s. election for, won't be an uneventful topic.

no matter who wins and how they