vi father. i love you so much, and will love you forever." that's all for this edition of dateline. i'm craig melvin. thank you for watching. [music playing] ♪ happy halloween. markets are open for trade this morning. we are setting up for a modest pickup in the price action not exactly spooked at this point. we are seeing a green hand over from the u.s. markets yesterday. snapping the three-day losing streak and putting solid gains back on the board. it is still a big week on earnings a ton of central bank decisions from the fed to the bank of japan which tweaked its policy

it did not carry forward the changes with the yield control policy and moves to the exodus as the market might thought. the central bank is central up front and investors are concerned about how the funding of treasury will look from here. we did hear the funding requirements for the third quarter will be lower than we thought they would be. the number of $76 billion less than anticipated a lot of earnings in europe. the green is moving on to the boards, but slowly .10% on the benchmark. if you are hoping for clawback trade, that may be a vain trade. european stocks are down .25% p

in terms of what we have under the hood, we have needed that bounce like the u.s. markets to close the gap and hold on to similar losses to the u.s. market this morning, media stocks up. oil and gas down .90%. another retreat in the energy stocks today bp is one of the reporters and it is sliding down 4%. autos down .10%. stellantis is the big one in the basket bbva is getting a negative earnings reaction. the spanish lending seeing the stock slide. basic resources giving up .10% technology is flat lining in contrast with the u.s. trade the nasdaq was firmer. apple is looking for the supply with numbers coming later on this morning the result is from the likes of tesla and panasonic overnight. we got a downbeat indication

with the demand story. retail ma retail names are helping out travel and leisure and utilities improving up .30%. real estate is one of the better per p fo performers ab-inbev is up in the top performing basket today. media stocks slipping from top spot let's take a look at the european boards and starting position for ftse 100. it gained .20% at this stage and firmer on the french market. scooped up .10% dax is under performing for the course of october down 4.3% in terms of others, bbva is not

helping in the banking space .50% drop over the .20% pop for the market we have a drop of 22 points or .20% on the zurich stock market let's get into the bp numbers. stock is down 40%. reported $3.29 billion in third quarter replacement profit missing expectations the energy giant logged $554 million impairment charge related to offshore wind promise in the united states this implemented the buyback share program and the stock is up 6%. looking at the other oil majors. shell is drifting slightly against totale uniper with a 9.97 billion euro

for the same period last year when the spiraling cost of replacing russian gas triggered a government rescue. steve. >> for michael lewis, ceo of uniper, who is joining us now. you know, we have to ask questions about the operations and the government stake i think it is lumpy at the moment nine-month net profit of 9.77 billion euro compared with the net loss of 43 billion a year ago. uniper is carrying on lumpy with the hedges or will we have a calmer period? >> good morning. great to be on the show. uniper is very much back with the operating result

the number you quoted is the unadjusted profit. when you adjust for provisions from last year, we come down to a number of 5.5 billion and 3.7 billion adjusted net income which are still very, very strong operational numbers you are absolutely right the numbers are sllumpy. they reflect the situation in the last 18 months if you recall, last year we had the start of the ukraine war and russian gas turned off that had a very damaging effect not just on the european energy market, but uniper because we were a large importer of gas from europe. that meant we had a gap in our gas portfolio, but still had to sell gas to customers. that meant the german government stepped in financially to cover that gap

we response experienced record s this year, we replaced gas and our numbers have turned around last year was a negative year and this year is a positive year driven by volatile markets and driven by ability to hedge that gas for a good price and driven by strong wholesale prices in power. we don't expect the one-off results to continue. we expect normalization going forward. this is a strong operating result >> look, you sorted out as a company over the last 12 months a lot of the structure issues that threatened uniper we talked about the government stake. i don't know how it can't be volatile going forward because of the horrendous war in europe

and concerns of flow and the weather as well, michael >> yeah. there are big challenges the gas market is still very volatile we can expect challenges this winter if we have very cold weather. what i can tell you is uniper is very well prepared for this winter as i said, we hedged our gas volumes. our gas storage is almost full we have our lng gas facility fully operational. we are as prepared as we can be. of course, we can't cover every single eventuality and aside from the ukraine war, there is also another horrific war raging in the middle east we are keeping a close watch on all of those things. what i can say is as far as possible, we hedged our positions and we are resilient for what this winter can throw

at us and we are building for the future we announced our strategy of our portfolio and providing security of supply for germany and our power plant strategy we're looking at resilience this winter and security of supply over the long term >> michael, it is karen here can i ask how you are thinking about the hedging policy in the events in the gas market is fragmented. it takes one piece of the pie to become unstuck for price action. how are you thinking about this new reality? >> the action last year was a one-off event. the black swan the gas psupply relying on the long-term contracts were turned off overnight. we have a number of contracts both pipeline and lng from different parts of the world we source gas on the wholesale market we are trying to balance our

position so our sales and our positions in the upstream and wholesale market match we continue to do that and we refine it every day. we have outstanding risk management capabilities and trading abilities. that has enabled us to turn this result this year and we will continue to refine that as we move into the continually volatile market. >> you want to walk us through the green investment you stepped them up with hydro and wind and solar how is this forperforming >> at the moment, we are at the beginning of this journey. we have a strong portfolio of green generation of hydro and nuclear. those are performing well. going forward, we will be investing in three types of green generation classic renewable and solar and wind secondly, in power plants or

converting gas fire power plants to carbon capture. then thirdly, the hydrogen ready. all of throwose are in place, b it depends on the environment to deliver those investments. we are waiting for the german government to finish discussions to enable us to build the capacity that germany needs for the future and which can replace the coal-fired capacity which will close in germany over the coming few years. >> can i ask a bigger question which worries me i said this the last couple weeks. why aren't people talking more about the fact that europe is importing more russian lng in various terminals around the continent? i'm asking as a participant rather than involved with russian products are we making the same mistake

we made with russian gas now with russian lng now volumes are high in europe as well as in some cases at record volumes >> i can only say uniper imports no russian gas either pipeline or lng we sought to diversify our gasses and we are no longer reliant on russian gas you are right, some russian gas is coming through in lng and through pipe licenlines in euro. we continue to diversify that is why we are looking at how we can create new sources or options for europe in terms of lng and we built capacity. over the longer term, we need to get off gas. that's why we are investing in flexible power generation which ultimately can be converted to

hyd hydrogen that is why we are investing in renewables it is why we want to see the economy move toward an electric economy where we are not reliant on natural gas it is required for the reduction of co2 as well in the short-term, there are parts of europe which have contracts with russia and need to take that task. our job at uniper is help europe diversify supply and move toward green gas. >> thank you very much for joining us on the back of the numbers. michael lewis, ceo of uniper. let's get to bbva. down 3% currently. opposed to the 13% increase of the profit in third quarter slightly ahead of expectations of $13.2 billion this one is fascinating. some could see the upgrade on the back of the numbers that the

spanish business was particularly strong. 51% bump up in the net interest income in the first nine months of the year. well above the 48% which is what the market expected. that stock is down because of the mexico performperformance. we will dig into it later on with charlotte. ab inbev has third quarter sales up 5% to offset lower volumes of beer being sold we have sylvia with more here. the weather was an issue in europe and a lot of rain and people were drink. >> in europe in other parts of the world, they were doing better let's review the numbers shares triading higher up by mor than 2.5%.

it seems investors are enjoying they announced a share buyback of $1 billion. it said it is pulling forward a cash offer of $3 billion some positives for investors at the same time, there was a question about sales in the united states. we have seen a drop this quarter of 13.5% in revenue in the united states. however, the key take away from the results is ab inbev says sales are now stable in the u.s. market there was a lot of backlash with bud light sales in the united states they have dropped from the top purchased beer in the u.s. and now we're hearing from the company saying the sales have now stabilized key to note that actually some of the p erformance in the unitd states has been offset by sales

in south africa and colombia and dominican republic just a final note to say that actually going into the results, there were questions about guidance and whether the company would actually increase the numbers on that front. that was not the case. they kept their guidance for this year. that doesn't seem to be impacting the stock this morning. >> smaller in the space is the question you said the numbers with ab inbev stock being down 10% year to date. diageo down 10%. it is interesting that the bigger and more diversified you are, the more you struggle that is not the case over the years. sylvia, thank you. let's push on to europe and southeast asia which could hurt

beer markets for 20 billion da danish cronas. speaking to cnbc, the ceo of carlsberg talked about the impact of climate change >> if weather becomes extreme. it is an issue july and august was impacted by weather across the europe. we have seen this throughout we estimate two thirds of the drop driven by weather itself. the rest is drive n by softer consumer environment. coming up on the show, stellantis has a 3 billion euro impact to revenues stemming from factory strikes in the u.s we'll have more after the break. hi, i'm denise. i've lost over 22 pounds with golo

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a slight pop in stellantis

with the sales in the third quarter and boosted by better the volumes and pricing strategy the carmaker flagged the u.s. strikes with the impact on revenue. charlotte is here with more on the strike action in the states to tesla and the panasonic stock overnight. what is stellantis telling us? >> it is the first time it quantified the impact with the agreement this weekend 43,000 employees in the u.s. you said in the introduction with the productions losses from the strike is 3 billion euro in lost revenue the impact of the strikes on profitability of less than 750 million euro this is a small impact among the detroit three. interesting comments there that we had from the impact of the strikes. revenue was up 7% on shipments

of 11% at 45.1 billion a smidge above expectations. improved volumes and pricing offset by the impact another comment that was interesting for this morning, very nice improvement in q3 especially in europe with the biggest challenges here are some of the snag was the supply chain improvimproving on the back of this and the impact of the strike, they confirmed full year guidance for the year of double digit margin on adjusted operating profit and positive profit. >> can i ask a question? it is just coming to my head on this one have the three automakers benefitted from the strike in the fact that -- bear with me. otherwise they would have excess inventory? the consumer is waning somewhat because they have not sold as

much as they wanted? we know it is not the luxury segment. i know the sales of lamborghinis which have come off aggressively very often we have shorter weeks and shorter shifts is there any indication that that is at play? >> because the demand could be uncertain now and gives them that -- >> not to actually put so much supply on the market because demand has come off the boil >> this is a jeep or dodge question >> it is what automakers do. let's leave that question hanging. >> i don't think charlotte can answer at this point because it's too early it is a great question. >> it was rhetorical let's get to jeffery at bny

m mellon how are you thinking about equities at this stage >> going back to the point of high yield and within the fx, there is some search for yield you are looking for currencies with high rates and equities flows are showing good performance and inflation related sectors and sectors which give you some degree of inflation protection it is about real protection and even in the safety context with a lot of stress when people are looking for safe havens and seeking demand in those areas. no matter what asset class, that is very much in place. >> i wonder if we are getting into correction territory and if it is enough to shake off the sidelines with 10% off the highs and on the s&p and nasdaq which was already there. is that an entry point for some

looking for better prices on the equities >> it depends on what happens tomorrow and whether the fed believes that the market has done its job for them. it becomes a self fulfilling cycle. if you think the fed is going to believe the market has done enough, it will be an entry opportunity. i think what we learned from the boj is market expectations and market pricing are two things. you are positioned relative to the fed and there is still a gap which is too wide and perhaps risk appetite will suffer. if i take a medium term, we think that is further best steepening and the market is there to inflict some pain. >> geoff, good to see you, my friend one of the oppositions of the u.s. investment bank says the earnings outlook at the moment is divorced from the reality posed by waning consumer demand and corporate pricing power.

would you echo that? >> it depends. in terms of direction of travel? absolutely the consumer is feeling the pain one thing about the u.s., per se, the impact on household debt by service ratios compared to other areas with the fixed rate mortgage area when nominal growth is moving the service ability to withstand in the u.s if i look at asset allocation, where do i want to be? if i look at my treasury book, maybe the trade will force my equity allocation higher than where it needs to be globe

globally, it is a different situation. >> geoff, let me say if the problem is not the household consumer, then is it elsewhere in corporate america i note the russell 2000 is down 8% and transports down by a similar margin >> i wish the corporate bond market would agree with you. what we are seeing is not just in the u.s., but corporate debt is the weakest element maybe in the u.s., it is a different element versus europe. the spread we see in the corporate space is not consistent with what we saw in 2007 and 2008 with corporate front and center the narrative is they should feel greater stress and refinancing risk we are not seeing that reflected in price action. i guess that asset allocators

with access cash is funding corporates in the eurozone, the corporates has out performed. >> the reference point is the high yield of the market trading below 2007 and 2000s it has picked up in europe why is european high yield trading higher in terms of yield than u.s.? it is not acting within a canary in a coal mine >> thi'm concerned about europei general with stagflation there is no asset allocation case for europe at this point. you are seeing it over the last few weeks when there should have been a clamor for safety assets.

that is a place to go to find surplus especially replies on germany. what is the forward outlook? w where is europe's growth i look at the ev struggle and reflection to preserve the status quo rather than seek industrial polpolicy i worry less than corporates with no transition taking place. that could feed into the banking system, maybe not for the time being, but lack of european growth strategy for the transition needed for the manufacturing sector is going to be problematic down the line >> geoff, if i could focus to the u.s. dollar because the month of october has had side ways action.

is this it with the u.s. dollar strength >> we think it is. we can stay at peak for a long time going back to the flow indices, some of the key inputs into the trade to u.s. dollar and euro dollar is still a bit of holding. the dollar has done better going back to equity markets, one strength the u.s. has is the stronger currency relative to neutral to financial conditions. right now, it is neutral from the dollar point of view weaker sterling and weaker euro is not helping the euro equities as much. the yen is struggling a bit because of the input costs that is one aspect of global allocation which is positive

>> always a pleasure geoff, thank you for your time director at bny mellon. coming up on the show, bank of japan tweaks the control policy redefining 1% we will discuss what that means after the break.

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in the headlines, bank of japan tweaks the ten-year yield policy the ten-year jgb touches the highest yield in over a decade an. and q3 profits for bp loss for the leg down in energy prices. bbva posts a 13% rise in third quarter profit boosted by higher level income in the main markets, but higher cost of risk weighs on shares of the spanish lender. ab inbev tops the stoxx 600 after the announce of $1 billion

share buyback program. the bank of japan tweaked the yield curve redefine 1% as a reference on the ten-year jgb. it is important given the uncertainties in the market. by my reckoning, marty, it is nearly 25 until 6:00 in tokyo. you have a hell of a shift today. thank you very much, indeed, for still being with us on "squawk." give us your analysis of what's happened >> reporter: steve, good morning. karen, good morning. early europe, good morning it is, as you would say, half

five 5:30 p.m. local time the sunset about half an hour ago. after a couple of drinks, you think you will stand it is five hours since the boj decision came out. i want to focus on the yen you referenced it earlier. 155 last i checked that is weak within striking distance of 151.90 which is the weakest it has been in about 33 years. in other words, the last time it was at that level was back in 1990 so, the significance of five hours since that, the yen is still weak no intervention yet. we have to see what happens during your hours and u.s. trading hours as well and if there is any intervention. if there is no intervention, there is a risk of whatever the

yen is kept around 150 gets unanchored it could go into freefall. here is a reason it may not. tie it back to the ten-year yield there. that 1% level is a reference point basically means there is no target at all forget the idea of the soft cap. if you want to chase it as the bond trader up to 125 or 130, it is yours is what the boj is signaling. the other thing we need to think about is timing. boj is meeting one day before the fed, remember. if, according to expectations, the fed does nothing and the comments are not hawkish, we should watch the jgb at 95 odd basis points the highest it has been in ten years. if it goes higher, that would narrow the interest rate

difference between u.s. rates and japanese rates in japan's favor. it would also help to support the yen. in other words, intervention may not be necessary we'll have to watch what happens during your hours and u.s. trading hours. back to you. >> marty, thank you very much. you deserve -- i don't know if you are doing "worldwide exchange" next, but i hope you relax. you pulled a massive shift thank you. republican presidential candidates are set to clash in florida in over a week among the points of contention, candidates hit out at esg policies as state legislatures introduce more than 165 anti-esg laws this year alone according to a report. let's get an expert view on this partner at hogan levels and former attorney general in washington, d.c. nice to join us.

i'm going to bemoan of cop-21 and cop-26 and seeing the fruits of the process, i'm be mused wh this is a political issue and what companies should do is think about the good parts of esg opposed to the bad parts of esg and work through it. i don't think i've ever known an acronym so politicized especially in the united states. >> it is hotly contested in the united states. as you noted in the first half of 2023, over 165 legislative bil bill, anti-esg, went into the bills in the united states less than 15% of those bills actually made it into law. now, esg is just an acronym.

republicans have done, frankly, a great job of vilifying that term and that's why companies are moving away from, perhaps, highlighting that term even though they are continuing with the sustainability efforts. >> can i go through this i don't want to sound like i'm a wishy-washy green loving lefty what bit of it do they not like? do they not like environmental responsibilities of corporates or social or government? as far as i'm concerned, i don't want to work for a company that does consider all three? what is it about a company that doesn't want that? i'm struggling, karl, what bit don't you like >> i appreciate your passion for sure i may fully agree with you

the real issue is politics and timing around sustainability efforts to the energy transition politics often times results in certain interest gruoups having large stay if you look at the fossil fuel industry and going to pol polit politicians, they have a huge impact on the legislative debate most americans don't know what esg is and most americans believe in climate change and most americans agree that we should have a responsible transition to a more sustainable future once more, everyone agrees companies should be transparent and there should be checks and balances in the united states, on that "s" factor around social, people know that the war for talent is

real that the tallent to seek is as broad as possible. race, gender, sexual orientation doesn't matter talent matters that is where the companies we advise are focused on. they want to have policies that nurture employees and attract the best talent to their companies so they can perform well for shareholders. >> there have been a ton of resolutions around esg over the years. it feels like some of that is altered by the woke or anti-woke movement what are they facing now with the resolutions pitched at them? >> really extraordinary. indeed, steve mentioned about the acronym esg and how it as hasn't been well defined i introduced the comment of being vilified that means tying esg to woke-ism i think the point for companies is they want to sell their goods

and services they don't want to be involved in a political battle. while the tre may be impact of o companies describe their efforts, companies will continue to proceed in trying to sell goods and services as possible that means more toward sustainability and more supportive humans around the "s" in esg >> how do they navigate the politics in the united states with the election coming up? big oil is a big issue how do they need to navigate the politics in the united states? >> the politics are very dicey in the united states especially as we approach a new presidential election. as we enter cop-28 season, there is no doubt that the biden

administration believes in climate change and is in favor of responsible transition. that could change in the election you are seeing players who have a stake at risk playing very, very hard and investing in the political contest. as you know, great companies, including fossil fuel companies are moving toward sustainability they may not talk about it that much, but they are that's where the win is going to be, i believe, in the end. >> look, i hope you can talk about mr. trump and various lawsuits against him four the last we loonked. in terms of that general election up and coming, the presidential election, how concerned are you that actually businesses and i'm not talking about politics, karl, but businesses won't have a steady road map going forward if there

is a change of a presidential leader in the united states going forward and we won't get guidance for initiatives because of the way u.s. politics is at the moment there isn't much partisanship going on >> mr. trump has a busy schedule as he is running for president with four important trials three of which are criminal cases. the important point for businesses is for them to continue to do what they need to do in order to be the best in their industry that means if you are in the environmental space, continuing to move toward sustainable transition and that means, certainly, having your door open and supporting employees no matter who they are and how they define themselves. that's where companies are playing. they are trying to move away

from politics and focus more on the nuts and bolts of their business that is advising our clients. >> some republicans are not recognizing the results and it feels like that is another feature going into the u.s. election that there will would be some partisan republicans and if there is a loss for republicans and they won't recognize the result which could attest democracy how are you thinking about that ramification >> it is true for a long time perhaps u.s. citizens and world observers viewed the checks and balances of the united states and democracy to be impenetrable the reality is democracy is fragile and depends on responsible actors to defend it and support peaceful transitions of power we will see as it goes in

regards to future elections. i believe in america i believe in democracy i think americans will get it right. >> just for clarity. i think it is very implicit. we should tell our viewers, you are affiliated with the democratic party >> i am. >> i don't think there is much ambiguity. karl, we enjoyed speaking to you. >> thank you, steve and karen. >> karl racine former attorney general from washington, d.c. and coming up on the show, bbva shares profit in the third quarter. karen will focus on it we will take a look at the stock after the break.

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markets in europe have been trading for 50 minutes so far. we picked up steam in terms of the green. the pounce is close to .50%. this is coming through for markets in france and germany. ftse 100 is up .20%. to the different sectors, we are

paused at the start and now it is oil and gas which is the odd one out of the mix bp numbers at 1.3% slump on the sector real estate is strong. 2% in the green. perhaps we are getting a bit of window dressing as we close out the month. chemicals and technology is an improvement as well. to the various different parts of the market with bp at the bottom thanks to the numbers at the 5% slide upside is some of the better performers today one of the spanish lenders, bbva came in at 22.08 billion euro. i question that, charlotte, because the report showed spain was great with upside guidance mexico is not as much as

anticipated which doesn't reflect the numbers. if you look at percentage growth of loans, mexico is a greater performance to the upside from the spanish market. >> it is interesting with the note this morning. overall, looking at the numbers, they are robust. slightly above forecast as you were saying. in mexico, net profit up 75% and 21%. other details on numbers is giving concern to analysts loan loss provisions up 21%. it was above expectation the bank says higher provisions in south america and mexico. that is concerning there the cost of risk of 111 basis points higher than the dguidance they have given we see from the comments this morning, the full year will be

above the guidance for the year. another point as well, a loss of 158 million euro in turkey with the hit from inflation and adjustments in the country darkening the numbers there for the set of bbva. an interesting mix opening even lo lower. this stock has been trading higher over the past six months. you see a bit of concern with the loan loss provisions overall, it is actually quite robust with the set of numbers. >> sometimes important to see deterioration of asset quality coming through many banks define that reality when it comes to return on equity, it feels some normalization coming of 17% the level we have seen ann annualize

>> they had tough irreer condit. now benefits from higher interest rates now we see a bit of concern in mexico and south america that will offset the difficudifficulty s and maybe that is reacting with the share reaction. >> thank you very much lovely to see you. take a look at the bottom of the stoxx 600. the big decliner on the session so far that is despite the oil prices bp i wanted to focus on this company because they are down 5.3% we almost showed you we if you go right -- there we go >> the other right >> down 3.2% the bp share price down 5.3% this is on the back of the

missing profit forecast and weaker gas division. this begin to highlight the fact as karen pointed out that the u.s. majors are going in a different path bp under pressure with refining margins with the weaker gas result it is the valuation that i want to focus on now trading circa six times forward of chevron i don't have a full-time ceo at the moment here. the numbers and reaction to the numbers highlight the fact that bp needs to get it right with their successes. >> a pushback saying we kdon't need oil and gas resources in the united states. >> i did not say that. >> new oil and gas. >> more. new. they he already have assets. >> with all of the

consolidations takeing place. >> that is it for "squawk box. that's it for me for the week. coming up next is "worldwide exchange." thank you to charlotte and the rest of the team a kenndar it was a smooth show

it is 5:00 a.m. here at cnbc global headquarters. here is your "five@5." wall street capping off the worst year front and center for investors today, the start of the two-day policy meeting we talk to steven whiting. and the fed is not the only game in town as the bank of japan makes its headlines and ones that could be bad news for u.s. stocks. and te