you know, this whole situation is a loss. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] ♪ good morning and welcome to "street signs." i'm joumanna bercetche. >> and i'm julianna tatelbaum. these are your headlines. deutsche shares soared toward the top of the stoxx 600 as the german lender shrugs off things. market trends are normalizing. >> what's going on is currencies, revenues we called for, especially in the macro

businesses, so rates, foreign exchange, and emerging markets where they had benefitted last year from the very high levels of volatility. >> we'll stay in the sector with the ceo seb leader when he talks about the third quarter profit. heineken maintains is guidance even while warning of slow consumer demand and falling volume sales. luxury giant loses its shine. the house of gucci has a drop in sales driven be i a slowdown in its north american market. and it's split fortunes with the big tech mergers with microsoft cloud online. alphabet's revenue disappoints.

good morning again, everybody, and welcome to "street signs." this time yesterday we had them flash pmi numbers come through, disappointing, going back to multi-year lows. let me bring marginally positive data out of germany. surprisingly german business morale has risen in october. there you have it. the piz climate index came in at 86.9 versus a consensus forecast of 8 8.7. it's a gauge of the upcoming months. that number has come in at 84.7, extend, higher than the consensus estimates of 82.3. the current number has come in at 89.2, the highest of all

three metrics. again, it is indicative of the manufacturing speculations settling down. we're seeing a bit of a bounce in the euro in reaction to the numbers and perhaps the slight increase in sentiment that we're witnessing that's coming out of these put together against the pmi figures. sticking with germany, deutsche bank firmly in focus. the bank has focused a net profit attributable to shareholders. that's down 8% as they saw a 4% decline. deutsche bank shares are among the best performers -- best performing stock, shall i say, in the stoxx 600. sylvia has been covering the stock all morning. to my mind the positive reaction, not so much down to the core business but to the prospect of more returns of shareholders in the coming years.

>> exactly. that seems to be what's boosting the stock. deutsche bank saying it could be about 3 billion euros that could be returned to shareholders all the way through to 2025. so in essence what investors seem to be enjoying this morning is that possibility of further returns. but all in all when you look at these latest numbers from deutsche bank, there's a lot of positives here. let me just highlight some of them for you. you can see the t-1 ratio came in at 13.9%. analysts also suggested that costs seem tounder control. so that's also a very important one particularly for deutsche bank. and then another big question for investors going into these results was is this a stable business? and when you look at the numbers from corporate banking, yes, the revenues are up by 21%. private banking also seemed relatively stable through the

third quarter, but, of course, when you look at the investment banking, a few issues there, particularly trading revenues also down in the third quarter too. so i had a chance to speak to the cfo and i asked him really to outline how the third quarter actually panned out for the bank. >> we have a pretext profit increase of $1.7 billion. $5 billion for the year to date with revenue growth especially in our corporate bank and private bank businesses benefiting from the interest rate environment. also we think very incredible performances in our investment bank and asset management in the latter case that had inflows as well as discipline costs and risk management. so overall we feel very good about the quarter we just closed. >> when it comes to investment banking, though, revenues were down overall, didn't do as well as in the past.

what's causing this? what's driving down investment banking at this stage? >> to begin with, the comparison quarter was a very strong quarter for us. what we see on an underlying basis is a performance pretty much in line with the market. what's going on is fixed income and currencies, revenues that we called for, especially in the macro businesses. so rates, foreign exchange, and emerging markets where they benefitted last year from the very high levels of volatility as the market was changing from adjustments and interest rates. also if you like a rotation of activity in other products, credit products and financing, that's where we see strength. we remain didn't confident abou business. >> i notice you also have loans in $346 million.

can you explain the rationale behind that? >> we've been running what we call stage three credit loss provisions at about the level of 350 now for several quarters, and so that reflects the credit environment that we're in. that's up from a relatively low number -- relatively low level of credit losses over the past several years. but is in line with the guidance we've given for the full year of between 25 and 30 basis points of provisions against average loans. so it's a credit environment that is a little worse than normal or a little worse than a very strong environment that we've come from, but by no means a period of stress. we actually booked credit loss provisions of a little less than 250 this quarter even with that 350 stage 3, and that's

reflecting, if you like, the conservatism we've had in our models up to date. in short, the credit environment remains, we think, pretty stable. >> i want to draw your attention to some of the comments deutsche bank made with the integration of the post bank. we saw this throughout the summer, consumers complaining they couldn't access their acc accounts. the german regulator is stepping in and looking into this. but they say they're going to fix all of these issues by the end of the year. this one is also an important one to follow in the coming months. >> the thing is often it's not just about the earnings, but you get a sense of what they're thinking about the economy. it was interesting to see the cfo say from a credit perspective, they're being cautious, but there aren't visible signs of stress yet. you know, i guess i want to tie it back to the macro. this morning we had this ifo

number come in, solidifying at a low level, but they're not getting worse. i would say that this kind of mirrors the language that we got out of the cfo this morning. they don't seem to be too troubled by what's happening on the ground, do they? >> if we look at germany specifically, they did say -- of course, we know there is a contraction this year, but they're expecting it to perform better slightly in 2024. but if we step back and look at the overall global economic picture, i also asked him about the geopolitics. this is an uncertainty at this stage. he did say there is a risk this could become inflationary going into 2024. that could bring pressures further on into the economy. how are central banks going to react todynamics? we have the ecb pausing tomorrow. >> thank you so much for coming in and breaking down the numbers. so numbers. let me throw it out to jeuliann

at the wall. >> there are a few in the green. up 6.5%. most of the heat map is trading in the red. this is a positive handover from wall street, all three majors ending the session up in the green as well as some asian markets and the shanghai complement with a new bond issuance with helping improving the infrastructure. in europe we got the stoxx 600 down about 0.4%. a lot of focus on the micro today. it's all about earnings, and some of those numbers have been dragging down the composite index. we have kering, france, barclays. today lloyds is trading under

water, and the scb, that stock is coming under pressure. those are some of the key names we're watching out for. in terms of broader markets, let's break it down for you. the only really vajt outperformer, the ftse 100 out of the uk is basically trading in flat. t brushing off the credits from unicredit, xetra dax down. of course, we are very much focused on some of those industrials, the performance of the tech names also coming under selling pressure today. even though deutsche is up around 7%, it's not enough to compensate for losses in some of the others. and then the ftse 100 trading around flat. switching over to sectors, this is where leadership is coming from this morning. miners seeing a bit of a bounce, up 0.3%.

it explains some of the marginal outperformance of the ftse 100. health care also up. another day of red for real estate, down 1.9%, even though we have seen a rally back in fixed income, it's not enough to compensate for the losses we're seeing there. retail also down 1.6%. now, let's get into some of the key earners i mentioned. deutsche, 6 pjts 6% higher. heineken posting better than expected results, 1.4. that's giving a boost to the food and beverage space. lloyds is down 3.1%. again, some of the themes coming through for these u kbanks, we have peaked lending and customer lending has gone down. of course, kering is one we're watching out for as well.

net profit there jumped by 20% in the third quarter, boosted by higher lending income in europe, especially in spain. the lender says it is on track to meet its full year target including a double digit growth in revenue. lloyds recorded 1.9 billion pounds in pretext profits during the third quarter. they saw a lending boost from higher interest rates but was partially offset by slower lending demands. a quick look at european banks as a whole, the complexus is pretty mump down. and elsewhere with scandinavian banks, scb beat expectations. the group also announced a new

buyback program worth 1.25 billion swedish crowns, though some analysts say it's slightly lower than what they were hoping for. luckily we're going to be speaking to johan torgeby, the ceo later. tune in to get more on the detailed earnings. heineken posted an increase coming in marginally below expectations but backed its outlook for the year but sees markets improving. the stock up over 1.3%. kering missed estimates. sales of the group's two biggest brands fell 14% and 16% respectively. charlotte, you've been walking us through luxury season so far,

which has been lvmh. it shook the luxury space. i wonder looking at kering's numbers, how much is this kering-specific over gucci versus a sector driven down by the macro? >> there's a big difference. we saw a slowdown in the demand with lvmh, but there was still growth. now, we know, of course, when we talk about kering, gucci, they were doing well but had slowed down. they have a new brand. a new creator had a show in september. we'll have to wait and see. they have new management at gucci. so they're working on that brand. in the meantime it was a little bit concerning that some of the other brands have held them offset. some of that weakness we saw like at gucci, they didn't do

very well. overall a pretty negative picture. they are more exposed to the aspirational consumer. that's in particular for u.s. a little bit of resilience in asia-pacific. the chinese consumer up 1%. last year q3 was very good because of the lifting of some covid restrictions. overall they kwarn of the slowdown of that demand in luxury and the issues there, we see the slowdown at gucci. they have a plan. change of structure, it's a much tighter one. i mentioned that gucci, a beauty division with the high end, a perfume they acquired as well. valentino, they're beefing up the brand. there are some concerns specific to kering.

>> charlotte, how do analysts view the fact that 50% of the sales come from gucci? is this something working to their advantage or disadvantage? you just highlighted there have been several changeovers there. they have a new ceo, creative director. at the same time it feels as though they're trying to pivot away from so much emphasis on gucci and valentino to generate new sources of income. >> absolutely. they were looking into m & a to expand the portfolio to not rely solely on gucci. of course, when there is a slowdown, they are more exposed. they have been building up another brand. their beauty division -- you have to consider the beauty division will lose money for a while outside of crede. we love the luxury players. the 30% has taken valentino.

they might acquire the whole brand by 2028. they're working on increasing that performance. while building up gucci, again, fwu chi was lucky a couple of times with tom ford. if they can do that again, maybe. it's a big question mark. >> i can certainly understand the concern out there and question marks around gucci and whether the revival is going to work. you look at the shares. kering is underperforming by a pretty wide margin. lvmh much more resilient. how much of this is baked in? >> it's very much the players. lvmh, they play to the aspiration of the consumer and the high end, and the geographical allows them to be more resilient.

another is most exposed to the aspiration of the consumer. this one is making it the underplayer amongst all the other stocks certainly. >> charlotte, thank you so much for the detail. noug switching over to the payment space, world line is the worst performer in the stoxx 600, citing a deteriorating macro environmental particularly in germany. it posted third quarter representative knew of 1.2 million euros. it's down 60%. meanwhile nexi shares fell in sympathy with that really dire update on worldline. >> to steves point earlier on s "squawk box," now investors are

getting an awakening moment. >> i think in worldline's case, one of the most concerns pieces is they've had to cut relationships with several merchants due to security concerns. so then there's a very concrete cap on their earnings outlook if they've severed ties with some of their key customers. >> if you want to get involved in the conversation what's going on with earnings, you can follow us on x and tweet us directly. and also coming up on the show, mixed fortunes for two of the world's biggest tech titans. we'll break down the world results from microsoft and alphabet after this break. when i started in 2016 i would go to the post office and literally fill out each person's name on a label and now with shipstation we are shipping 500 beauty boxes a month it takes less than 5 minutes for me to get all of my labels

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two of the world's biggest tech names had mixed fortunes in third quarter early releases. alphabet fell despite the cloud revenue missed estimates by $200 million as customers cut back on spending. the ceo says he believes the

company will benefit from the development of ai. >> obviously we see it as a foundational platform shift. it starts with search. we are rolling it out to more users. we're making sure the product works well and that ads transition well. i think -- i view this, with ai, the opportunity to evolve into the next decade ahead. >> well, in contrast to alphabet price action, let's take a look at microsoft. the company beat wall street estimates reporting a 23% increase in that income as operating expense growth slowed.

i'm really happy to say arjun joins us around the desk to break down all of the earnings. one thing that stood out to me from microsoft, the revenue from their cloud computing united jumped, but around 3% of that was tied to artificial intelligence and investors seem to be encouraged by that. >> we may be starting to see a bottom here for the cloud division, but actually it was the fact that those early bets microsoft made in open ai and some of these ai applications are actually starting to be monetized and add to revenue. and when people look at microsoft and investors are looking at who's going to be the big ai winners, i think it's quite clear that microsoft has taken an early lead. you compare that to what you saw with google, cloud revenue miss. we saw a strong growth rate with cloud, but profitability is very thin. i'll just give you the

comparison. google's operating income for the september quarter, $226 million. microsoft's operating income in the same period, $11.75 billion. so investors are paying here for microsoft and you saw the after hours high because all of that strong profitability in the cloud, but now the fact that the ai bets are starting on to pay dividends in the cloud division and they're saying if the trend continues, we think it's going to be a big deal for cloud. >> microsoft has an incredible history of beating expectations. quarter after quarter they bee beat and stock performs well. what did the guidance look like? are they going to continue to keep beating? >> it looks like with azure they're still growing. the market was happy with that and the current quarter. that was something they're predicting. they're looking like they're going to continue with pretty

strong momentum, i think, in double digit growth in terms of overrevenue. so it's looking like microsoft can eke out gains, continue to grow pretty strongly in what is a tough macro environment. we heard about investors with cut spend on the cloud. when you're with microsoft, it will be interesting to see how amazonplays out, to two biggest cloud players in the company, they often have stickiness with the customers and can offer big deals. it seems like that's what's playing out in the moment in the cloud for microsoft. >> let's compare that to what's happening with alphabet. looking at the numbers, their own cloud business grew 22%. it's double the growth it's experiencing among its other business sentiments but only $20 million below expectations, but yet we saw a huge down reaction,

arjun. is it because of the disappointment in the cloud or are there other things that play in the context? >> alphabet had a 58% lead. clearly there were high expectations, how do you justify these moves from alphabet. what they wanted to see is alphabet was firing on all cylinders. it's good in that the core ad business remained strong. there was positive signs that even again in a market where customers are cutting back on advertising, alphabet and google more broadly managed to continue to grow out revenue, and that was the concern that allayed those fears, but then to justify the rally, what else does alphabet have. and the other big bet they make is on cloud and they post significant revenue and drive from the company. that's not materialized as of yet, and it's unclear where

google's ai investments are contributing. that's not happening yet. i think the pullback we saw overnight was a reflection of that. it was quite big, but not huge, and i think it's sort of the money off the table, a little bit of pause, and now wait and see what alphabet has to offer. they have a big new foundational model called gemini set to launch in the coming months, so this is a big focus for investors, what does this do in terms of the value proposition here at ai and can they replicate the success that microsoft so far has seen with their ai products in the cloud. >> so interesting. is it pronounlsced as azure by e way? >> yes. >> they're more of a challenger than a leader. that's going to be a focus for the investment community as it pertains to alphabet. aor june, thank you very much

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signs." i'm julianna tatelbaum. >> i'm joumanna bercetche, and these are your headlines. deutsche bank shares soared toward the top of the stoxx 600 as the german lender raises its capital outlook and follows banking investment revenues. >> what's going on is the normalization of fixed income currencies and revenues we called for especially in the macro businesses, so rates, foreign exchange, and emerging markets, where they had benefitted last year from the high levels of volatility. >> we'll stay in the sector with seb's ceo later. heineken shares turned higher as the beer maker posted

a year-to-date net income and maintained its guidance even amid slowing consumer demand and luxury volume. the house of gucci posting a 9% slowdown. and split fortunes with microsoft on cloud nine thanking to rising revenue and its azure segment, but alphabet shares fall as called shares disappoints. well, as you can see on the board here, we've got the majority of regions trading lower on a business earnings day. as joumanna outlined at the start of the show, it feels very much about the micro in contrast to recent weeks when it was all about the macro. the foottse 100 is up.

smi soaring. heineken alsoperforming well. then on the downline, you have worldline. the food delivery companies also performing poorly this morning. now, the european trade is taking place after a green session in asia overnight. you got the shake high composite up 0.4%. the hang seng and hong kong up about half a percent and the nikkei also trading higher. in china, beijing has welcomed a preview of a new bond issue. the new funds will be used to finance urban infrastructure and rebuild crisis-stricken rural areas. the issuance will add to the improved mood out of china following last quarter's better than expected gdp figures hoping it will raise its growth target for 2023 after all. more stimulus out of the

authorities. there you have a look at u.s. futures, which are mixed at this stage. you've got the dow trading higher by about 42 points at this stage. this follows yesterday when the s&p closed up about 0.7% prior to the earnings after the bell. the dow snapped a four-day losing streak and the earnings continue today. in the tech space, we've got meta, the next one up. telenor shares are higher in oslo this morning after the operator topped their third quarter operations with a net profit of 2.5 billion norwegian croner. the ceo joins us. thank you for being with us. the stock is performing well this morning. can you characterize for us the quarter? >> yes, i'm very pleased with the quarter. we had a 24% revenue growth. we had 7% ebita growth.

i'm especially happy with the sustaining growth. this is the fourth quarter in a row we're growing more than 5%. this just shows that our customers are appreciating our services and products, but also they have the ability to pay for it. overall, quite pleased with the quarter. >> i know cash flow generation has been a key focus for the company, so investors are clearly pleased to see that you are making progress on that commitment. i wonder, though, in an environment, a macro environmental that's dominated by inflation at this point and a weakening general economic backdrop how you think about generating growth. >> yeah. to answer that question, first we see that we have the ability to increase prices when we are doing that in the concept of more for more. we're giving our customers more value. that means the speed of 5g could

mean more data in the packages but also internet and security services. that's how we're continuing to also take out the prices for our products. at the same time, we are continuing to drive down costs. we have several different projects now across our volume. we took that down with 1.5% in this quarter. this is coming from us now, utilizing more and more on new technology, ai being one of it. so the combination of these two things makes us more attractive for customers but also lead in the operation. that's where the customer is coming out of. in addition to that, we have also said that we are so happy that we are not rushing things. that's the reason why capex is coming down in years to come. >> sir, just to tie into what

julianna was asking, i think it's very clear you do have the pricing power, and one of the questions we've been posing to ceos over the last few weeks is how you'll handle the rising costs again. have you hedged with the elevating prices right now? >> no. it's a very limited part of our plan. but we did go into purchasing power agreements some years ago. so now that is starting to kick in. it came from kind of a climate position, but now it will also be a hedge. we secure prices that is down to low historical prices. we've done the same in denmark. we've done it through agreements. >> earlier this year you announced the shutdown of your

copper network. has that been a drag and is it fully faded now? >> yes, that has been a drag for us actually for the last three years, a significant drag. we took a relatively tough decision four years ago where we wanted to shut down the copper operation. now the last customer is out. we have a few thousand customers left, but the consumers, the last one is out. and now you see that the drag is coming down to almost nothing. so now the underlying frouct, we have tried to explain that drag period is now also the real growth because the drag is over. so i'm very happy with that and now we are basing our infrastructure on the network for all of our customers. >> let me change tack a little bit and ask u network security. we're in a heightened

geopolitical risk and cyber threats loom large. how do you ensure security when you're up against risks like these? >> this is very important for us. in our partnership, we're basically using all of the technology vendors, but it's very important for us that we keep a close eye into the coordinate. in the nexus network, that's a different issue. in sweden, there's a regulation saying that we need to completely move out of chinese vendors. we're doing that in norway as well. we're doing that in denmark. in sweden, we're using some chinese vendors. we make sure we have full access to customer information to keep them from stealing information. >> thank you so much, sigve brekke of telenor.

there's a point to the risk that the war with hamas could escalate and spread through the region. the agency forecast the israeli economy would contract by 5% in the fourth quarter. the palestinian health ministry says more than 700 people have been killed in gaza in the last 24 hours with the death toll now above 5,700. officials also say hospitals are near breaking points, warning that the health system may collapse in the next 24 hours due to a lack of fuel. u.n. secretary-general antonio guterres has hit out at, quote, clear violations of international law in gaza as he called out israel to protect the safety of civilians. they say the attack earlier this month, quote, did not happen in a vacuum. israel's ambassador to the u.n. has since called for gutierrez to resign saying the secretary-general is completely disconnected from the reality in

our region. tania bryer spoke to the director of unicef about the growing humanitarian crisis in gaza. >> it's just a devastating situation for children across gaza, children on the move, children who are not getting the basic services of life including, you know, sanitation, water, education, of course, so it's very, very devastating now for the children that are there. >> from the team on the ground, what are you hearing from them? >> the hard thing there is they're almost powerless to help, right, because they don't have access. we don't have humanitarian access to most parts of the region. and, of course, they, too, are under the sort of -- in the situation where they are facing the same sort of bombings and violence and so it's very challenging. >> what do you think is stopping more trucks and more humanitarian aid going through? >> i think the challenges, those are decisions by kind of

political leaders in the space, and, you know, from the humanitarian perspective, we try not to get involved in politics, but we do really make the request that we need a humanitarian cease-fire so we can get the adequate supplies in to save lives of innocent civilians, children who desperately need them. >> the israel defense forces have reportedly confirmed as many as 30 children being held as hostages by hamas. what is your message to those holding children as hostages? >> abducting children is grave violation as recognized by the security council. it's absolutely unacceptable. they have to be released. they have to be returned to their families immediately. jog meanwhile a spokesperson spoke and said policy makers should work toward resolving the situation. >> what we can do is show the

impact shortened and the risks medium long-term, and, again, appeal for peace, appeal for reason. >> that was kristalina speaking. and coming up, we'll be speaking to the ceo of seb coming up next.

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sebastien post seb posted a 42% in the thirty quarter beating analysts' expectations. i'm very happy to say johan torgeby joins us. good morning. the numbers come in, 10.5 billion swedish ckrona. what do you think the investment community are missing?

>> i don't think they're missing anything. what's been true the last seven or eight quarters are significant and the income is a quite robust and sustainable income type, and we actually came in on par with that expectation. so that would be my skplec nation, even though i haven't followed the stock very closely, but we were prepared as the major beat came on different types of income types that are regarded broadly speaking as less robust for the future. >> this is a question that i wanted to put to you, and perhaps we can unpack that a little further, roy your expectations are for net income. just a short while ago i had a conversation with the governor. it does seem like they have a few more hikes left in them, but what is the outlook for 2024 in terms of where the rates can go and what impact it will have on

the broad banking sector. >> first i'd like to point out the majority of what we do is outside sweden, so we're equally dependent on the fed and the ecb. those are the two major currencies we operate in. it's widely debated as you pointed out. you have the bank in sweden, the central bank. will they hold here? our economists do think this is it and they won't increase more, but they're an outlier. the consensus is for one or two more hikes. for me it doesn't really matter. there's a large adjustment happening as we speak in the banking sector, and that to me as of the last decade was falling at negative rates and now very, very quickly we have justed with a rapid increase of interest rates and we kind of at the end of that beginning of the next decade. we will have a natural positive effect if they continue to increase rates. as they increase the price of money, that increases more.

beneficial economic circumstances for us. on the other hand we can see the volume-based metric and the current interest rate hikes have had the desired effect. we've seen the developmental landing and liquidity being soaked up from the system and a gradual decrease also of the deposits and available funds to save. as we've seen over the last year and a half, if they continue to increase rates, that's good for the financial result, but it is an elevated level in the short term. it doesn't necessarily tell you anything about 2025. >> johan, we're starting to see some of your european peers come under margin pressure, and, yes, i certainly take it that it came in under the consensus. if i can pin you down for where net margins go from here, i'd love to. >> yeah. i'll reason with you. it's not a projection that i share. but we have in sweden probably

raised the interest rates on deposit accounts more than most. we've increased them now by roughly 350 basis points, so there are a very little margin today in placing money on term deposits. transaction accounts, this is a separate thing. there still is a very low yield. if you look at the margins we currently have on the mortgage book, they are tightening. they have absolutely collapsed. so in a way what you see in the financial result today is partly already taken all that into consideration that the current margin pressure has been significant and is here now. what benefits us is, of course, history. this is on margin. the long book is three to four years long on average duration. it takes time for that and many things can happen in the next years. but there's definitely in our languagearound it today something that will be coming to an end of this kind of wind

fall. >> let me take you to the buyback, what's been the focal point for investors in an area where perhaps your original answer to the question about why stock is down where you've continue up short versus expectations, this new program of 1.25 swedish krona, that was the hopes of the analysts community. what's your message on the buyback. >> we have had for a year and a half a bit of a target of coming back to a capital position represented by 300 basis points and more capital than the minimum requirement. we are currently at 430 basis points, and there needs to be some type of adjustment given the performance we currently have, which is very, very strong. call it a share buyback volume or in combination with an increased dividend. there was expectation for news today over the next five quarters if we would increase the pace of the share buyback or

disclose something different on the dividend policy we have, which is to pay out 50% of our earnings. and we had the board meeting yesterday, and we decided to follow the normal schedule, which is to talk about this later in december. >> very clear, sir. thank you for responding to our question on the buybacks. just give me a quick update on what's happening on the cost side of things. i see you've increased the cost guidance a little bit going into next year, but it's still an increase in terms of what your expectations are. can you give us sort of just an understanding of where you see these costs settling? >> yeah. we embarked on a quite rare expansion strategy within european banking industry a few years back, so we've actually hired roughly 2,000 people as we are trying to develop the firm and build a larger bank. also geographical expansion is part of the plan and ever increasing costs of doing

business for banking in terms of regulation and anti-financial crime, et cetera. the cross-target for this year has been set, and we're going to do everything and it looks very plausible. however, you need to take into consideration more than 50% or about 50% is in foreign currency. and the swedish krona has been remarkably weak. so what you see in the cost increase over and beyond what has been communicated normally can be explained by the currency, and our target is in adjustable currency. we don't change the strategy of the bank. then for a firmer cross target for the year 2024, that would be communicated in january. >> sir, wonderful to get you on today. thank you so much for your candid responses to all of our questions. johan torgeby, the ceo of seb.

let's take a look at the broader complex. it's mostly in the red. big focus on kering. the stock is down 4% on trading on disappointed earnings. xetra dax down a quarter of a percent even though deutsche bank is a strong performer today. the only green patch is the ftse 100. we'll see how microsoft stocks react after their results yesterday. right now it's a mixed picture for the u.s. markets. perhaps they're waiting for meta results later today as well as results from a number of other corporates. that is it for "street signs." i'm julianna tatelbaum. orwia rcchmannbeete. "wldde exchange" is coming up nextet.

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cnbc headquarters and here's your "five@5" your "fifive@5." front and center is alphabet. the stocks are heading lower ahead of the open. but it's a very different story for microsoft. impressive cloud growth fueled by ai is sending that stock higher in the premarket. plus the d.c. drama, it continues as republicans float yet another name to possibly unify that party. and later what one market