unicredit soaring in the session .an stocks this morning, 6.5% on a massive beat in the quarter. plenty more going up. this is bloomberg. ♪ we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. >> this is "bloomberg surveillance: early edition" whfr

let's dive into unicredit. the company posted a more than 60% jump in the revenue in the first quarter during my strong commercial momentum. the atlitalian lender raised it guidance joumanna is in mulan it looks like a pretty stellar result. >> it's pretty telling, julianna it's a strong show of support for the investment community, and why wouldn't they be pleased. the bank posted really strong results. they beat on net interest income, on fees, cost discipline, and also raised the guidance for the year in terms of what they're planning on distributing to investors. remember, unicredit had had a policy of distributing 100% of their profits to the shareholders that has been a huge appeal for the investment community and is one of the reasons why the stock has performed so well. at the beginning of this year, even if you remove today, the stock was up 30% versus the performance of about three percentage points. we're talking about a huge outperformance today only adds fuel to the fire here and when i spoke to th

unicredit and lloyds both called their upcoming at1s but like i said, the real test is spending as unicredit said they don't need to refinance the at1s and will not issue a new at1 in the same for lloyds which already issued them a few months ago and the amount of the redeeming at1 was pretty small. it is positive if unicredit had not called the at1, that could have fed rumors and unrest in at1 market and could be a sign that they and you would think they are not able to refinance them. it is positive in that sense for the markets. we also see in spreads of at1s they have come down definitely from their peaks seen after what happened with credit suisse. the real test is still to come and maybe september we will see some spanish banks with at1s. that might be the real test. francine: thank you so much. joost beaumont, head of bank research at abn amro. treasury secretary janet yellen warns there are no good options for solving the debt limit stalemates. that is other than congress lifting the cap. we will get more next. this is bloomberg. ♪ francine: welcome back to the european market open.

unicredit boost his full-year profit target after record first quarter.bnp parabolic fixed income traders defy in industry mood as income thrives. european banks are performing well, the guidance being raised, a record quarter. manus: the playbook raising the buyback, $500 million. net income up 44%. when you break into the numbers you see that net interest income is the driver for everybody, at 3.3 billion. 44% year on year. tom: for bnp parabolic, this is a thick trading success coming through -- for bnp paribas. jumping over 16% from a year earlier, according to the results coming through which is come through with a very solid beat. fixed income traders defying the broader global doom and gloom around that part of the business. lifting net income by almost 3 billion euros in the quarter. manus: that has the new incoming ceo, we don't know yet what assets will come on the block, but the cfo can talk perhaps a little more about the strategy and what they might be looking for from the credit suisse unwinding and deconstruction of that bank. he will catch

hsbc, and that and unicredit up 18% from january 1 unicredit up 38% we did not see this in 2008. people are wondering, is it a matter of catchup or a structural difference? >> i'm glad you brought it up. there's a thematic view among bank investors and investors in general, whether u.s. banks are better off than their european counterparts just this morning, analysts over at citigroup updated deutsche bank. >> in an environment like this. >> they're more transparent. their liquidity issues are less in focus they've been more transparent about the commercial real estate exposure. >> amazing. >> especially in the u.s upgrade on the buy it is an attractive entry point. it gives an idea of the debate going on. >> right from credit suisse, now an update >>> is this a canary in the coal mine for a looming global recession? let's bring in the former fdic chair, author of "bull by the horns" and children's books "money tales." i'm tempted to ask you tell us the children's book version of this, but let's get to the point today, what would stop the bleeding >> i only try to write happy sto

bnp paribas, unicredit and lloyds out with numbers. lufthansa and airbus with numbers as well. get loads of numbers from the car sector the following day. tomorrow we get porsche and still and tests. -- and stellantis. alix: oil off also by over 4%. let's get some insight into what's happening. christyan malek, a price target. what happened for bp? why were the market so surprised about it? christyan: we have been cautious all year and we recommended the next shoe to drop in the sector, january was the earnings risk. across-the-board to consensus. really the next shoe drop was cash return. what's happening with bp is it will take the hand in terms of expressing that view on the basis of demand being weaker. a mean reversion from the heights of last year. everything was working into a more normalized outlook exacerbated by weaker demand and that has manifested itself in having to revise down the buyback and that came as a surprise to the market given the basis behind the sector. guy: does a 9% move today capture all of that risk and that news it comes to the cash flow story? chr

banks trading flat unicredit is an outperformer there with green on the board. you can see the rest of the sector is deeply in negative territory. media down 1.7%. autos tend to be cyclical. down 1.4%. healthcare is not shown here a lot of focus on novonordisk. one of the under performing stocks of the stoxx 600. let's talk about the earnings that have come out today and novo should be here. down 6%. this is on the back of the supply chain issues they are facing in neameeting the demand the u.s. market wegovy weight loss drug. you know julianna has spent time talking about wegovy and the noro dprofile. other stocks is germany and uniper leading shell as well and hugo boss with disappointing results today. >>> let's get back to the fed. the federal reserve raised interest rates 25 points yesterday. taking the target from 5% to 5.25%. jay powell said they will make a meeting-by-meeting basis looking for a pause. he said such a move to cut is unlikely this marks the tenth consecutive rate increase in over a year here is a picture of the u.s. markets and how we trad

unicredit set to report tomorrow i'll be in milan speaking to the ceo. we have oil and gas down bp is dragging and basic resources down 1.3%. let's talk more about what happened at bp the profits did rise to $5 billion in the first quarter that beat expectation. the energy giant reduced share buyback and committed to using 60% of cash flow to buy back stock. the group forecast higher gas prices in europe and asia in the second quarter boosted by recovering demand in china the stock is down 5.5% broader oil is taking a cue from bp 5.5% shell is down 4% total is down 2.2% a cloudy outlook ahead for the oil and gas names. as i stated, hsbc with a profit of $12.9 billion in the first quarter and 200% increase over last year and above estimates. revenue rose for the year fueled by rising net interest income. they announced the first quarterly dividend at 10 cents per share and buyback of up $2 billion as it prepares for a clash and paying over proposals on friday. a lot to unpack there. the stock is doing well after solid results. european banks today here wh

let me dive into some of the big movers for you unicredit in the banking sector is the best performingthe market this morning. ice up nearly 5% after the bank posted a more than 56% jump in the first quarter drawing momentum in all of its key areas. the italian lender raised its full year guidance in the airline space lufthansa is trading sharply lower, 3.7% after posting a 40% increase revenue in the first quarter the german airlines says it's look toward the summer season to improve the overall picture expecting summer holiday travel to increase. the results were seen as disappointing. >>> finally stellantis shares in the auto sector, it's down nearly 2% this morning despite posting a strong set of revenue figures in the results they delivered to the market. frank, back over to you. >> thank you, julianna our julianna tatelbaum live in our london newsroom. >>> time now for our top stories. silvana henao is back with those stories. over to you. >> frank, good morning former top executives if silicon valley bank and signature bank set to discuss the collapse of the firms. there will be

i spoke to unicredit ceo this week and he said he is concerned about the smaller u.s. banks the fed really has to keep a close eye and the fed chair talked up the strength of the u.s. banking system. a lot of this is about confidence if there is a continued crisis of confidence, you will see more volatility in the markets and that is something the fed has to keep an eye on so far in europe, we have been more immune to that than the fed have >> i think it is so top of mind for investors. here in uk, we have a bank holiday on monday. investors will watch phones throughout the weekend because there is not an immaterial chance we could see another bank collapse stateside over the weekend. that is a risk that is talked about among the investment community. something to think about when we get the nfp numbers. >> other people will watch the coronation here in the uk. it is a washout. >> you may start out watching and turn to the banking news >> upside of the rain. >> we hope you enjoy your long coronation weekend if you are in the uk that is it for us. i'm julianna tatelbaum

erik nielsen from unicredit said this.icy tightening begins to hit the economy the european underperformance will be longer and deeper than needed because of excessive monetary tightening." industrial production in germany downside surprise. factory orders ugly. earnings do not scream trade is good. you think there is a risk perhaps the ecb relative to the fed is the central bank most at risk of making a policy mistake at the moment? subadra: that is always a problem when you are following the fed and not leading the fed. this almost always happens in every cycle where the ecb over shoots. not broader economic fundamentals. broadly speaking, a lot of people are expecting the european economy to go into recession. the european economies in u.k. has done better than people broadly expected. a slow down to be expected given how aggressively the ecb has hiked rates. the trajectory will be the fed will have to pivot in the ecb will have to pivot thereafter. jonathan: wonderful to get your perspective as always. so back to risha