bnp paribas is leading this which is positive for my point of view for various reasons. continue. you have raised a very important question which is the quality of financial infrastructure in the euro zone. we should never forget that since the decision was made on brexit, the competitiveness of the continent, the work has been delivered. in the continent, people are working hard to build up better, stronger, and faster financial infrastructure. time is running away, and with this, we see increased competitiveness. i know this is a debate, a sensitive debate between the u.k. and the continent. but, people are working hard to improve and they do. and we see the results. rishaad: the bnp paribas chairman speaking exclusively to anna edwards and tom mackenzie. coming up, sharing outlook on oil after saudi arabia and r rishaad: this is daybreak australia. we are looking at oil markets, very much the core of things with opec members convening in vienna on wednesday for a conference. in a speech by the saudi energy minister, it will be closely watched after he promised to keep

daniel morris here from bnp paribas joins us have we reached pullback we have just seen the dow do theork to the latter part of the month. pullback as some point >> at least on a relative basis. we had very good returns this year especially how depressed we looked with the bulls and bears. they were not optimistic it is contrarian with equities we had the really good returns everyone is saying let's pile in that's where you get disappointed >> the s&p has reported and we thought earnings would take a bit of a hit and maybe the banks with regards to loan losses and that being a big hit because we have higher interest rates seemingly doing very well. >> going into the earnings season, we thought it would be strong we thought surprises would be positive that is not a bold call. it is not a negative surprise in that way more importantly, i think, with the outlook and what they say about the future and what you are getting is a higher percentage than average of positive guidance against history. from what they are seeing today, things look good >> it is extra ordinary for bears to hold up i

we have earnings, we've had second quarter earnings from bnp paribas this morning. french bank relying on tight cost controls and loan provisions to offset a slump in fixed income trading that was worse than what most have seen. operating expenses rose just one point 6% from a year earlier, much less than analysts expected. we will speak to the bank cfo shortly after 7:00 a.m. u.k. time on bloomberg markets today. airbus has been reporting it ditched its previous target to raise plane production past three covid levels. the world's biggest playmaker said it is on track to meet the goal of building 75 of its best jets a month by 2026. boeing generated nearly 2.6 food dollars and cash flow in the second quarter, far exceeding expectations. benedict, airbus and boeing both delivering earnings that beat estimates. >> we had boeing in the morning and airbus in the evening, so it was a nice read across both companies. as you said, they both eat earnings. last month they brought in big orders at the paris air show, hundreds of planes being ordered there, so that gave them

what will it look like for bnp paribas? so far, commodities not great. tinto not setting a great town. more auto earnings on deck. more luxury after the bow. what will it look like for them? will it be the disappointment of lvmh and burberry? or can they fight the trend? then the ecb decision around 1:00 p.m. u.k. time. fed today, ecb tomorrow. kailey: busy several days for all of us. more on the ecb decision and let's get back to our question of the day, it is this july and goodbye? melanie d'amato joins us. we could ask this questionable defense in the ecb. are these the last hikes? melanie: when it comes to the ecb, we do not think so. we have another hike scheduled in for september, 25 basis points. that would take the deposit rate to 4%, terminal rate. dani: at what point does the european economy really feel the pain? you could argue we are already in restrictive territory. does it have been 4%? is it something more that tips it into a full on recession? melanie: that is the question. we have had a slew of economic data telling the bank it can stop

the chairman of bnp paribas shared his thoughts. >> let's be honest.ensions in society. i have seen many of them in democracies in the united states, in the u.k., in other countries. it is part of the life of a democratic society. we need to understand this. it has little to do with competitiveness and attractiveness. dani: join assess -- joining us is paris-based reporter caroline connan. have things calmed down? caroline: it has been another quiet night in paris and other major cities across the country. only 70 arrests last night compared to 1300. there up in less than 20 arrests in paris. also one of the reasons is not only the heavy police presence, you have 45,000 police officers deployed across the country every night for the past week, but also the fact that a lot of these young people have already been arrested and sometimes they have already been judged so you have more than 3500 arrests. most of these are for young people between 14 and 18. the average age is 17 years old. they are facing tough sanctions. you have this 14-year-old who got se

we will be watching a several european banks, including deutsche bank, santander, barclays and bnp paribast. coming up, the phillips ceo speaks to us after the dutch medical equipment maker raised it's a four year sales forecast. that interview is next. this is bloomberg. ♪ lizzy: welcome back. phillips has raised its sales forecast for the year following better supply of parts and a restructuring that slashed thousands of jobs. they say that revenue should rise by did single-digit percentage, more than previously guided. it is a happy day for the phillips ceo, who is with me now. you've raised your four year sales outlook, what is driving it? what has helped most? roy: i am really happy that see the plan we put in place at the beginning of the year is really feeling an impact. we started the year we said we need to get back to growth and we achieve that in the first quarter and now in the second quarter with 9% growth, you see the actions we are taking for example to drive more supply that can help us convert a strong order book, that is turning it into sales. we also increased our profit

we will hear from bnp paribas. arrange of banks will be giving us their story.nce from the banking story is important. single stocks have been important. the most important story, the one that caught my eye, is what is happening in the power markets. for so long there has been this concern that europe is going to struggle when it comes to feeding its industries and economies with cheap power. over the weekend we went from the sublime to the ridiculous. as the ukraine war started power prices shot up. over this weekend we had negative prices. we have gone the way up there in 2022 to all the way down there. europe has built a huge amount of solar as a result of concerns around the availability of energy at the supposition feeding into that narrative. we are now in a position where we are producing so much that the group cannot cope and we ended up this weekend and into monday, the weekend is one thing, monday morning is different. we ended up with different power prices. rachel morrison joints me now on set. we have gone from one extreme to the other. is this goin

tom: bnp paribas. jonathan: it is still 3400 for the year end.ing it right and they are cautious. but i will emphasize this. john authers and the isabel lee article should be level 1 reading. it has six charts without any of the malicious crap you get on the zeitgeist. it is a brilliant tour de force. jonathan: this is a difficult job to make these calls. let's get into the fx market. i want to talk about the euro. the euro on the weekly drop and could be the worst week going back to may. may be breaking through 113 the last week but now holding onto 111.25. going into the federal reserve decision last week former fed chair, ben bernanke, said in a webinar and talked about the hike being the last. "what we will see is a modest increase in unemployment and a slowing of the economy, but i would be very surprised to see a deep recession in the next year. " these are the hopes and dreams of everyone. tom: pull out the word deep. for those not up to speed there are different levels of recession. not only the early 1980's but deep is the keyword. let's

tom: i did a panel with bnp paribas in china 15 years ago and i had no understanding of how the entiree discussion in china is property. that is the avenue for the masses to try in husband savings. lisa: this is the reason why they don't want to lean into that lever. they are worried about a bubble and they want to create an more even and develop market in the economy that emphasizes the middle class. they cannot do that if they continue to inflate housing that is not occupied in a significant way. tom: jonathan amberson did legendary work on this and he is -- and this is an generalization -- a generalization. a third of the country is vacant. jon: you are right to describe the problem. we are at the end of july, think about where we were eight months ago before the start of 2023 where we were talking about china being the place where the boom would come from. it is that disappointing that we are going into q4 about the prospect of stimulus out of china. that is where the disappointment has been. your equity mark on the s&p 500 positive. from new york, good morning. ♪ the first time yo