that you can talk to her whenever and know that she is there with you and loves you. ♪ welcome to "squawk box." stock markets are opening up for trade. a truckload of earnings from banks to brewers. we'll be chasing reaction. that said, markets starting to cool. stateside, election fever settling in.

there's a lot happening internationally as well as on the earnings front here in europe this morning. the benchmark sliding another .50% topping up on the declines yesterday where we dropped .25%. red ink is still what we're seeing. in terms of the sectors, these are the gainers. you can see it is still a down beat performance for the top performers on the european markets today. every sector in the red. oil and gas reporting from shell to total. the distribution is important. the sector is still down by just over .2%. chemicals and resources and insurance, some of the better trades, but still as you see it is red arrows across the board. decliners at the bottom of the benchmark today. i mentioned the earnings is having bearing. retail stocks dropping 1%. technology down .9%.

st down in the basket. it is a weak outing on the back of earnings that we've seen. media names down .75% of 1%. european bourses. reaction to the budget as well. the over performance down .75%. second negative session yesterday. the third negative session. you can see the other major markets, italian stocks were set to open weaker by 1%. we're down currently almost 18%. gaining with the french market. these markets were down 1% yesterday. adding to the position to the down side today and we're waiting for a change on the dax. it was also in reverse mode. this major market set to open up slower thanks to some of the bigger companies yet to tick open on the german stock market. let's have a look at the smaller indices today. you can see the portuguese

market reporting stronger. elsewhere, a sea of red across the board. declines to the tune of .6% of some of the major boards. spanish stocks down. i mentioned some of the boards and net basket with the big bank names as well. silvia. let's look at the individual stock stories this morning. we have the track this week at the open that initially at the start of the week where investors were very much reacting to lower oil prices. however, looking at the top gainers in the stoxx 600, it is clear investors are a lot more focused on earnings. for instance, just a few seconds ago, we had maersk among the top gainers and after the company reported third quarter results. at this stage, looking at some of the stocks we had. argenx in germany and erste among the top banks as well as

sydbank as well. i want to take you to the worst performing stocks at this stage. there's a lot of pressure in the banking world at this stage. we have bnp paribas the worst stock in early deals down 5%. ing under pressure down more than 3%. now let me take you to what's happening in some of the energy companies. we also heard from shell this morning. the company posted adjusted earnings of $6 billion in the third quarter topping expectations as the energy giant offset lower crude prices with a strong performance in its gas business. europe's largest oil and gas company unveiled a $3.5 billion share buyback. that's the 12th straight quarter it announced a buyback worth more than $3 billion. when it comes to totale, saying in the energy space, it saw a net interest fall worse than

expected in the third quarter coming in at $4.1 billion. the french energy major was hit by a sharp decline in energy and output disruption. it also took a 1.1 billion impairment charge with the power. shares striking lower 1.5% at this stage. when it comes to airbus, a surprise leadership change in the plane making business. tapping the chief of german engine maker lars wagner for the job. this as profits moved higher than expected on the back of the 5% increase in sales. airbus investors seem to be enjoying those announcements with the shares now at this stage up 2.8%. as i highlighted earlier, we

talked about maersk with the strong third quarter and revised the global container market growth outlook to the top of the range at 6%. now, ebidta came in at $4.8 billion in the third quarter driven by higher rates and exports out of china. important remark there in terms of what they're seeing in the chinese market. shares, however, marginally below the flat line. in the auto industry, stellantis posted a 27% year on year decline in third quarter revenue to 33 billion euro. that is better than what analyst analysts were expecting. it confirmed its full-year guidance. shares up almost 1% in the italian bourse. when it comes to the euro market, we discussed this earlier on squawk, ab inbev

coming in above expectations and soft demand in the key markets of united states and mexico. it posted third quarter revenue growth of just over 7% and 2% respectively while volumes declined 2.4%. all well below with the shares down 3%. staying in the industry, carlsberg narrowly missing analyst expectations. the danish brewer backed the guidance for the year and at this stage, we don't have a figure yet. let's see how investors will digest these results. karen. thank you. siemens agreed to buy american software group altair for $10.6 billion. let's get to annette with more.

>> reporter: that is the biggest deal in siemens history if you don't count the buy in 2020. it is a huge deal for siemens. they are equipped to pay in catch cash. the initial plan actually was not to spend on a bond ak acqui acquisition. this was an ideal fit to siemens. they want to grow in the automation business. it is especially the automation software market that is really growing because the more a.i. is taking place in industrial applications, the more you need exactly these industrial software solutions. so, now siemens with that very well positioned among the

competitors which is automation. emerson electric and abb from switzerland. the deal also makes sense from the industrial logic, but the geopolitical logic because they want to diversify themselves from china and they are increasing their footprint in the united states. >> annette, thank you very much for that. we are seeing strong reaction today on soc gern for revenue. bounce in the stock of 8.4% right at the stock of the stoxx 600. it posted a 10% increase in revenue boosted by the equity trading and business seeigmentsn france. it boosted 43% in line with estimates. soc gen will appoint a new chief financial officer. henry dixon at mann group

joining us. we have reaction to the budget and truckload of earnings to talk about. the opr was not positive in reaction in the fiscal pledges here. what was your view on what we saw? >> i think if you think about the inflation expectation and growth expectation, that was modestly upgraded. i think that is a natural response to a predictable budget from center left if you like more tax and spending. it is frustrating at this stage if you like the bulk of the move not on real growth, but sadly on inflation. if i think about the reaction that you might see from corporates in the wake of the move. >> we saw minimum wages to go up and a greater contribution of national insurance. what impact does trit really ha on business was the higher costs? >> if i just merely move that in the model with regards to what

we see in the larger employers where labor is a big portion of the cost base. a typical supermarket in the uk, as we digest the news from yesterday, they will downgrade earnings expect tations 7% next year. >> 7%? >> 7%. rarely all things are equal in a predictable response. if i look at ledger names, it is higher across pub sectors 10% to 15%. all things are not equal. they will respond and prices will be pushed up slightly to mitigate that. that is how you see a real-life example and what it means to earnings and the natural response to be and where it leads inflation. >> that is really interesting. higher prices with retail and leisure. is there ability to do that? because what we have seen this morning with carlsberg trading down from the beer categories, i

think that is fascinating because the consumer has been resilient right here in the uk. >> he we have a picture in the uk where the consumer seems to be cautious in the uk. i would say that by an unusually high savings rate. there will be a budget that will be painful. i see it is absolutely the case at the moment that cautious. we we see retail sales being better. certainly it has been a case of a bit of caution at the moment. >> i want to turn to earnings. smith reported today high revenue for the third quarter, but it has also cut its 2024 view. the uk medical technology company numbers seeing moved to

the bottom of the staoxx 600. what's your reaction to that? >> smith averages is see cheap indeed. there is activity on the register trying to shake it up to come out with higher forecast. certainly, it is a business we looked at in details. we have not invested in the business at this stage. we were concerned about the competitive position. again with the u.s. peers with the regard to the ability to compete in a cap ex industry. i see the disappointment today. that was a bit of hope on the margin targets delivered and the host would start to make some change. at this stage, that hope is proved to be too early and it is false hope. >> a lot reporting on the energy side, too. we had totalenergy and shell in particular and the company reaction is up 1% after the third quarter results. he

here, if you switch over the charts. you see how shell is doing. is that the reason to stay invested? >> absolutely. i think shell has a tale of two oil companies at the moment. shell has longer data earning streams from gas. it doesn't feel the low oil price in the short-term. shell is doing better than bp. with the oil majors, we saw astonishing major opportunities. share prices have been strong and cash flows have come back a bit bit. if i look at absolute value, the balance sheet strength is the second best in the wider uk market. definitely well below one. this does allow the companies to provide very good total returns. i think it has been a difficult period for the oil prices.

i am starting to see value emerge with the long run investor capital and cash flow can settle. >> henry, i want to ask about the positioning ahead of the u.s. election with what we have seen in the last couple days with the retreat in the cautious activity ahead of the u.s. election. there has been a lot of side ways trade. that's enough given way to some declines now. is that market saying let's step back and wait and see what happens. >> again, is that to what we have seen in the uk, better markets clearly favor one candidate over the other. it would be more inflationary. we have the classic case of concerns about inflation and a standing off before the event as big as this. why would you want big risk going into this? broadly speaking, you see bond yields rise. as bond yields rise, it shakes the asset tree a bit.

we are seeing a classic case of policies digested and higher inflation and bond yields. that's a difficult back drop. >> great description. henry dixon. portfolio manager at man group. silvia, more reaction to chase today. exactly. i would like to pay closer attention to what ishappening in the banking sector. the sector is actually down .50% at this stage. we did hear from several banks inclu including bbva. it was higher from what analysts were expecting. however, net interest income came in lower than the expected at 5.87 billion euro. the bank said it will out perform the three-year goals to 2024. staying in the sector, caixabank said the third quarter net profit came in at 1.57 billion euro. that was up 3% on the same

period last year. this on the back of lower provisions while lending income remains high. the spanish lender announced its fifth share buyback program to 500 million euro starting after november 19th. shares at this stage are tracking lower. the ceo told this program the bank will take an obvious hit from the ecb lowering rates, but that it will be able to offset that somehow. >> we have actually grew -- really minimally, but grew net interest income in the quarter. we are seeing resilient numbers here. obviously, as futures and interest rates show significant decrease, there will be an impact going forward, but my expectation is we are going to offset toa large extent, through increased business volumes. particularly in the robust economy in spain. moving from spanish banks to

french lenders. bnp posting 2.7% year on year and net income grew 6% in the quarter. in france on the year and almost 3% in oitaly. the lender confirmed the outlook for the full year and seeing strong growth in the corporate banking segment which offset the commercial side of the business. charlotte had a chance to speak to the cfo and asked about m&a opportunities for the bank. >> if you look at the two elements that had a strong quarter is insurance and asset management. so, the thing is what you do know is we are working on a major deal with axa. it will make the asset management stronger. that's basically the thing. we see this business activity doing well.

we see the net new cash going up str strongly. we have things in the wings that will make it a better solution. better solution and having more products and even more distribution channels and scale. >> the talks with the investment management business, are you on track to close the deal for the middle of 2025? >> the prtrajectory we have is get it signed by the end of this year and then you need all of the regulatory approvals. we are on track to get closer by summer. >> the reports that the potential interesting in hsbc french life insurer. is that the kind of acquisition you are looking at? >> you have seen we have struck a deal with hsbc in germany on the wealth management. that's basically very fine because it makes us in a very strong position in a very interesting business. so, that deal is done.

listen, i will not comment on any rumors that go around. we also got another take on banking consolidation with erste group cfo who told cnbc his firm is interested in joining the trend. >> we were watching the developments as you can imagine and we are not commenting on these for other players. yes, we believe there will be a phase of further consolidation now. banks have been strengthening the capital base and room for transactions. we have been participatipartici. we are interested to being consolidated. we are strong enough and very interested in m& a when it fits. coming up on the show, green shoots emerge in the china economy after the slower stimulus measus omrefr authorities. we'll have details next.

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chinese october factory activity expanded for the first time in six months. this on the back of beijing's fiscal stimulus measures. manufacturing pmi came in at 50.1, ahead of expectations. the services figure pointed to growth at 50.2. investors are now looking ahead to the national people's congress next week and anticipation of the support measures. beijing is expected to issue 10 trillion yuan. elsewhere, saudi arabia finance minister insisted the spending is sustainable despite

crude prices at $70 a barrel. while dan joins us with more at the event that is considered davos in the desert. dan, we saw you on stage earlier. >> reporter: that's right, karen. we have been speaking with a number of people on stage with the policymakers and ceos and government officials at what was formally known as dav oos in th desert. one of the most important conferences in the middle east and here in saudi arabia. so, i had the opportunity to speak with saudi arabia's finance minister. we spoke about a whole range of issues. of course, chief among them was how saudi arabia is shielding its economy from the ongoing impact of israel's war in the region. at the same time, we spoke about the ripple effects of the u.s. election neckxt week and impactn the kingdom and the flow-on of

foreign policy. we also spoke about the impact of lower oil prices as well with prices below the imf fiscal break even. we spoke about the rates and lower rates moving forward with saudi arabia, of course, mosque in moving in lock-step with the u.s. real. here is part of the conversation. >> i would speculate and we wait for the fed to decide. i was last week in washington and chair jay powell was there. i understand their thinking and share the process they go through. generally, the likelihood is for h interest rates to go down. i think that is helpful for the world economy and the u.s. economy. that will actually help growth. we need to make sure the global,

at large, global trajectory toward growth goes to the upside and lower interest rates actually helps. from a saudi perspective, i think that that will definitely help us. we're going through significant re reform that requires a lot of funding. the cheaper the funding, the better for us. >> you and i spoke before about the kingdom growing diversification efforts. at the same time as well, we are looking at the fiscal break even. what does it mean for the budget? how important is fiscal discipline in this environment? >> this is actually a very good question and i think it just summarizes the vision of 2030 is about. vision 2030 is decoupling the economy from the situation of oil. we came a long way over the last seven years, a long way when we

started. today, our net oil gdp is 52% of total gdp. that is significant dive diversi diversification. our oil revenue has grown significantly. it is 37% of our expenditure. that is significant diversification. that gives you a lot of comfort to maneuver and be stable despite the situation in oil price. our aim is to make sure our plans are stable and predictable despite the fluctuation and accommodative price. that is going to continue. we are not going to blink. we have significant fiscal resource at our disposal. we are very disciplined in our fiscal position. if you look at what we have done over the last six years, it is actually remarkable bringing

deficit down from 13% to zero and now spending even more to support our diversification plan and strategies even with the deficit of 2% is remarkable. >> reporter: you heard him say saudi arabia is not going to blink. the same could be said for saudi arabia's near $1 trillion public investment fund which also has made a recent announcement which is doubling down on the investments inside the kingdom rather than focus internationally which is the focus for the pif over the last couple years. what we are seeing here is an ongoing effort to continue to diversify this economy to build out non-oil gdp and shield against what will be in the future lower oil prices and, perhaps, a period of ongoing regional conflict as well. back to you. >> thank you very much for that, dan. ahead on the show, germany's coalition government teeters on the edge of collapse. ttn ill speak with norbert r

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welcome to "squawk box." i'm karen tso. these are your headlines. a tale of two banks. soc gen to the top of the stoxx 600. retail and equity revenue disappointments sends bnp paribas shares lower. the cfo is optimistic about the future. >> credits and deposits are able. they are there and that's a good thing. on top of that, the yield curve as a short-term coming down, will further steepen. that is all positive. shell moves higher on the earnings beat and announces a

$3.5 billion buy back and totalenergies fall on the three-year low. airbus shares fly higher and the top and bottom line beat. the company announcing the leadership change at the top of the key business. and mega cap tech names fall in pre-market despite top and bottom line beats says microsoft revenue outlook and meta's a.i. spend spook investors. >> our a.i. investments continue to require serious infrastructure and i continue to invest significantly there, too. well, european equities have been trading for in jjust over minutes. let's get a look at how we are faring this morning. we have red across the major

bourses on the continent there morning. continuing the sentiment has been the story throughout the week thus far. the ftse 100 is down .5%. yesterday was a very important day for uk investors. we finally got detail from the labour government and they are still digesting the detail from the chancellor with some suggesting they are worried about the increase in borrowing. others suggesting they are not too concerned about these plans and definitely we did not see the same levels of concern that we had seen when liz truss was the prime minister. also, i want to take you to france briefly. the cac 40 down .6%. earlier this morning, the inflation print for the month of october in france came in line with expectations at 1.5%. a lot of speculation right now about what the ecb is going to

do next. in fact, we did hear from the german bundesbank governor yesterday. what will this mean in terms of potential rate cuts at the december meeting? we shall find out. let's look at the different sectors as well so we can talk about the different corporate stories this morning. when you think about the best performing sectors, we have construction and materials as the best performing sector. however, below the flat line. banks, a lot of banks under pressure this morning. the whole sector is down .2%. in fact, what we have heard is mixed stories and feelings, really. we are seeing a bit of pressure for the banking names as a result of the rate cuts that the ecb has been announcing. however, though, the outlook for some of these banks is positive when you think about the overall

historic performance for the european banking names. i want to take you to the worst performing sectors because that's where the focus is this morning as we are tracking losses on the european bourses this morning. we have tech as one of the worst perf performing sectors down .9%. we heard from the big companies stateside. today, we hear from apple, intel, amazon and uber as well. we will see what this means for the tech names as well. karen, we cannot forget that investors are also concerned about the dynamics within the semiconductor space. silvia, thank you for that. clearly, a lot to add to the earnings and the back drop as we countdown to the u.s. election. it feels we have seen investors pull back from the record highs. you can see on the back of what was a downbeat session yesterday. markets looking to give back

further territory this morning right across the board with the triple digit down beat session expected for the dow and the nasdaq. that does suggest for the nasdaq after record levels, will give back territory in earnings reaction. i have to say, just caution, too, ahead of the u.s. election. speaking of which, republican nominee donald trump is making his final appeal to swing state voters with days to go until voters head to the polls making stops in north carolina yesterday. harris is on a swing state blitz campaigning in three battle grounds, north carolina, pennsylvania and wisconsin. peter alexander has been following the harris campaign and filed this report. >> reporter: vice president harris tonight taking her cl closing argument on the road. hitting three crucial swing states. >> unlike donald trump, i don't believe people who disagree with

me are the enemy. he wants to put them in jail. i'll give them a seat at the table. >> reporter: harris today trying to capitalize on last night's massive rally in front of the white house. >> donald trump has spent a decade trying to keep the american people divided and afraid of each other. that is who he is, but america, i am here tonight to say that is not who we are. >> reporter: promising to promote unity and honoring americans who fought for freedom 250 years ago. >> they didn't do that only to see us submit to the will of another petty tyrant. >> reporter: still a challenge for harris? polls show a significant lead among women, trump has a large lead among men. in la crosse, wisconsin, this

man is supporting harris. >> my wife is a breast cancer survivor. she has a pre-existing conditions. i want to make sure we keep that affordable care act. >> reporter: the electrician is voting for trump. >> the thing with trump, he says what's on his mind. he says what a lot of people are thinking. >> reporter: also tonight, republican arnold schwarzenegger is endorsing kamala harris. warning if reelected, trump will find more ways to be unamerican than he already has been. germany's embattled coalition may be headed for collapse in a snap election according to german media and comes among speculation that ministers cannot agree on a 2025 budget. i'm joined by norbert ruttgen. thank you so much for joining us today. >> good morning, karen. >> give us a glimpse into the window of politics in germany. it feels we have at coalition

kr cobbled together, but uncomfortable bed fellows. >> i'm in the position of bias to the objpen, but it is not on in the view that this coalition is on the view of breakup because they cannot find common ground. there is so much on the table we have to respond to. war in europe, recession, energy problems, infrastructure, bureaucracy and so on. they can't find common ground. instead, they have an infighting now and openly every day. so, it could really happen and it would say it would be a great relief. >> you have been pendingning a in foreign policy relations. we have war in ukraine and the

issues in the middle east and if anything, international collaboration and i haven't mentioned climate change here. what is the dynamic with the coalition in germany with difficult politics in the united states? i think the real question of whether capitalism works. we know the bedrock of this all this is democracy. >> that is the title of the book. "democracy and war." our western democracy is in a state of crisis and at the same time, we are facing external crises, war. the west, as a whole, and europe, we are facing challenges we have never faced in post-war history. so, cohesion is important. there is a challenge we thought would be a matter of history. this is war in europe. this will define our fate and destiny for years, perhaps

decades to come if we do not succeed in banning war in europe again. it will get evermore expensive and it is really a question of war or security or peace in europe and the west has to stand up. europeans have to stand up, germany that's stand up to its responsibilities and to our own interests. >> i was talking to a leading policymaker last week, a country sitting closer to the border of ukraine. the message was if we have a trump presidency and the war is solved quickly, don't think the problems are behind us. you will have a russia meddling more than ever before in domestic politics in western democracies. do you agree with that even if we get to some resolution that russia is still a major threat? >> absolutely russia -- as long as russia remains an imp

imperialistic country. this view and stance and if trump gets elected and if he were to strike a quick deal with putin on ukraine, it could only be a deal at the expense of ukrainian security. this would be at the expense of european security because this is is tentamount. this is the worst case scenario because the war would have paid off for putin and if war gets rewarded, if war pays off, war will stay, but war will remain and we will have a deep divide within the west which is just what vladimir putin and xi jinping wants, to divide the

west and weaken the west. if the weakening were to come from the most inner circle from the president of the united states, the most powerful country in president world, and in nato, this would be a fundamental danger for the west and our cohesion and ability to stand up for democracy and values. >> one commisstment from the u. after the war is the commitment from germany. the rise of the afd in germany does pose to people the threat of the war in ukraine. there is a strong showing and various parts in the afd. there is a view if they secure more of voter next year's election, stronger showing that means they could also push back against funding with the war in ukraine. is the afd a threat to the war in ukraine? >> so, we have threats to

democracy outside and inside. we are democracies. there is a position against policy to support ukraine. there is a strong support for this policy. 38% of german voters agree in the polls to deliver more weapons to ukraine. they want to see more military support. 31% say it's just okay what the government is doing. so 69% are supportive of military support for ukraine. this is a strong support. in the democracy, you do not need and there is no -- there is never 100% support for a policy. so, this is not -- this is a -- this is a democratic normal thing to have opposition. of course, this is opposition not within the democratic spectrum. they are anti-democratic. they are neo-nazis and old

nazis. they are attacking the democratic rules of our society and country. this is a severedanger and challenge to our democracy. i would not -- i want to be very clear about that. however, the support, the fundamental course of german policy has taken root in our society. a paradigm shift has taken place from the pacifist country to a country that sees now military capabilities have to be an element of foreign policy. >> you wonder about the potential of a trump presidency again and what it could mean for the war in ukraine. one policymaker said if trump is reelected, that means tariffs. that means the economic growth story is challenged. it means we will become poorer in europe. if we become poorer, more people will listen to the populist.

we know fewer structure reforms will take place. do you an agree to the assessment? we get more populist and fewer structure reforms? >> i will say first, trump is unpred unpredictable, but if we take him at what he said during the campaign, there are threats to both european growth, world growth and american growth and european security. but this would mean only one thing. we, as europeans, we have to stand up our europe. trump is right. we are more than 30 years after the end of the cold war. it is for europe to organize our own european security. both in the economic terms and in military terms. it's up to the europeans to seize the moment and to seize the european momentum which would occur out of this. >> just quickly. we are all closely watching north korea boots on the ground

in ukraine. do you think that this suggests we are on the cusp of another world war given the south koreans are talking about arming with the proxy war playing out in europe? >> what we are seeing and this is evidence of that that the authoritarian countries are forging more and more in a strong alliance against democracy, liberty and the west and we have to respond. for that reason, for example, both washington should lift restrictions on the use of western weapons. we are delivering to ukraine. we have to allow them to use these weapons on russian soil against military targets. this has now to be allowed to them because it is about only about defense and self defense. these restrictions are out dated and we should do everything possible to make -- to enable ukraine to defend itself.

>> norbert, it has been a fascinating conversation. we appreciate you stopping by the studio. >> thank you very much. >> norbert ruttgen. to the budget and uk chancellor rachel reeves gave her speech on wednesday in order to afford the investment. she needed to fund the decade of national renewal under her plan that means an extra 100 billion pounds of capital spending. partly funded by tax rises which puts it record 32% of gdp. chief richard hughes says this represents one of the largest increase in spending in history. chancellor reeves said she had to make tough choices. >> lower the capital gains tax from 10% to 18% and higher rate

from 20% to 24% while maintaining the capital gains tax on residential property at 18 and 24%. this means uk will have the lowest capital gains tax rate. the choices i made today are the right choices for our country. to restore stability to our public finances and protect working people. to fix our nhs and to rebuild britain. that doesn't mean these choices are easy, but they are responsible. if the party opposite disagrees with the choices that i have made, then they must answer what choices would they make? >> silvia has been taking a closer look for us. silvia. >> exactly. it was a very important day for uk investors.

it seems they are still figuring out, really, how they feel about the fact that the uk government is going to be increasing their borrowing and spending and ultimately taxes as well. let me run you through what we witnessed in the bond market. gilts marched higher after the speech. it avoided a market meltdown from what we witnessed in 2022 when liz truss was the prime minister. now, markets digested plans that will mean almost 30 billion pounds per year on average in additional borrowing throughout the rest of the parliament. the debt management office says it will issue almost 300 billion pounds of gilts this fiscal year. the biggest figure on record outside of covid times. hence, the reaction we saw in gilts yesterday. now, the obr says this will give a temporary boost to the output in near term, but leave gdp

unchanged in five years time. however, it downgraded the projections for the economy which could mean trouble for the prime minister keir starmer who said he is targeting a 2.5% growth rate. we shall see how this budget is going to impact the uk economy, karen, but for now, everyone is still trying to understand what it actually means for the uk's borrowing plans. >> man group saying inflationary to me earlier in the show. silvia, thank you very much for that. coming up on the show, tech titans microsoft and meta posted earnings beats on the top and bottom lines, but shares sink. we'll tell you why next.

meta fell in expended trade on weaker than expected numbers in q3. the giant beating on the top and bottom line, but mark zuckerberg

warned of the ramp up of spending in 2025. microsoft fell in the call. steve kovach filed this report. >> reporter: microsoft beat on the top and bottom lines, along with exaccelerated growth in aze cloud. the company warned growth would slowdown in the current quarter sending shares lower in the extended trading on wednesday. first, let's go over the numbers. eps beat at $3.30. revenue beat by $1 billion as well. $65.59 billion. azure beat 33% year on year versus expectation of over 29%. that may not be directly comparable since microsoft switched around the segment reporting for the quarter. boosting the azure growth number is artificial intelligence.

a.i. contributed 12% of the azure growth. amy hood said the december growth would come in at 31% and that would remain flat. that's because she said the company is supply constraint, cx would increase this quarter. for cnbc business news, i'm steve kovach. apple and amazon will report their results after the bell today. amazon's margins may have been squeezed due to the pressure on the u.s. consumer. they could be signs of optimism in the company's cloud business. meantime, apple's results are said to give a hint on the demand for the iphone 16.

the a.i. developments is important for apple and the macbook family as well. thanks for staying with us on a heavy day on the earnings front. thank you for joining "squawk box." stay with the channel. "worldwide exchange" is up next. what is ? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com.

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it's 5:00 a.m. at cnbc global headquarters. welcome to "worldwide exchange." here's your "five@5." shares of microsoft and meta under pressure ahead of the open. investors are sounding the alarm of rising costs from the massive a.i. buildouts. those fears rippling across the sector. and it's not just earnings. investors will watch for a major market mover and the final pce report before the fed decision next week. plus, a judg