and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

tom: good morning, i'm tom mackenzie in london, these of the stories that set your agenda. ubs has a big earnings beat. this was slender says it expects the merging for credit suisse to be completed at the end of may. we will bring you an interview with the ubs ceo in an hour's time. stocks in asia follow the u.s. higher. all my hopes the fed will cut rates this year. the yen weakens against the dollar after japan's effects chief says intervention is needed if markets are orderly. plus, israel projects a cease-fire proposal backed by hamas after the militant group agreed to the plan. israel vowing to push ahead with military operations in rough. it is another big week on the earnings front. ubs coming through. decent beat in terms of net

income and profit, continuing to look in terms of the interview we have a the ceo with any comments on the capital plans, we know the swiss government's plans around capital allocations and the requirements there are essentially for this lender. coming through with a big beat in terms of net revenue, we will start there, net revenue for ubs coming in at $12.7 billion, decently above the estimates of 11.8 billion. in terms of net income, almost triple the estimates. just shy of one point 8 billion u.s. dollars versus the estimates shy of 600 million. asset management was a modest miss. return on tangible equity for ubs in the first quarter was triple what was expected. an increase of 9% versus the estimates of 3%.

pretax profit, a very healthy beat coming through from ubs. versus the estimates just shy of 1.2 billion. again, they expect the merger of ubs and credit suisse to complete on may the 13th first. we will bring you a conversation with the ubs ceo in just under an hour. at 7:00 a.m. u.k. time on markets today. stay tuned for that. on the earnings run over in italy, unicredit coming in top line. this is the redhead from the top lender up 40%. the redhead first quarter net income coming with a beat for unicredit. 2.56 billion euros versus the estimates of 2.1 billion euros. decent beat coming through. we look for lines on net interest income. 2.5 6 billion is the top line in terms of net income. net interest income and i i also coming in with a beat. 3.5 8 billion above the estimates of three point five

one billion. modest feet in terms of net interest income. they are seeing in terms of the first quarter net fees and commission coming in above the estimates, just above two billion in terms of force critter revenue above the estimates, six point 4 billion. shy of 6.4 billion euros. when you listen in on the call for unicredit. the outlook for net interest will be key. this is a market, this is a bank up 40% year to date. goldman sachs expects 9 billion euros for this lender in 2024. solid beat coming through. earnings story will play into the market moves as we close in on that 8:00 a.m. u.k. time open for these markets and it was an optimistic day, day of gains in the u.s. with the nasdaq 100 and the s&p adding up side of over 1% on expectations the fed can go possibly two times in terms of the cuts coming through on the back of the softer jobs data. you have the big make cap tech

names like nvidia and tesla performing strongly in the u.s. session. european futures pointing to gains. ftse 100 adding 89 points, for -- full one percentage point. we keep an eye on the commodities. goldman sachs raising the outlook. s&p futures currently flat after the gains of yesterday. nasdaq futures and similar territory. let's look across asset briefly in terms of what we are seeing across the treasury curve. one basis point move for 81 on the two-year. yields up-and-coming and lower on the back of the softer jobs data. expectations around the evolution of the fet expectations possibly two cuts this year. japanese yen, little bit of weakness down 3/10 versus their comments from the fed from the effects official that intervention is not needed. $83 a barrel on brent as we get across the geopolitics of gaza and israel. copper above 10,000 per ton.

goldman sachs raising their target from 10,000 to 12,000 on the supply deficit. let's cross over to asia where avril hong is standing by with a gauge on the asian markets. how are the markets playing out today? >> they play out in a divergent fashion. if you look at japan and south korea, the nikkei playing catch up after a long weekend. in china, the equities are sliding, hang seng on track to snap a 10 second winning streak. that's the news flow on the real estate friend. top-tier city relaxing some of these homebuying restrictions. this is a mixed bag and asia stocks. flip the board because i want to take you down under where we see an interesting picture emerging. investors bracing for an hawkish iba. we will find out more from the governor later this hour. this is taking a leaf out of the

fed's playbook last week. the take away shows we are likely to see a rate hike from the rba this year. australian stocks extending gains as of the bonds. the aussie sliding toward 66 u.s. sentences. flip the board again. i want to draw your attention to what was the dollar. it has been edging towards 15 five as traders are refocusing on what we are seeing from the yield gap. that is the level we last saw on thursday. we are working on the assumption there were two rounds of intervention last week. we got verbal intervention from the currency chief saying there's no need for intervention of markets behave in an orderly fashion, but that hasn't help the currency. we are keeping a close eye on the earnings season in japan. this week we will hear from the likes of toyota and tokyo electron. we find out just how weak yen is

playing into their results. tom: yen back in focus. avril hong in singapore with the markets truck. to the ubs story, posting a big beat, it's on the first quarter net income. this was lender's on net income come in at 1.7 billion dollars, well ahead of the 600 million dollars that had been expected. another line crossing in the last minute from ubs. they cannot yet fully assess the capital effect from new swiss laws. we know they push back against the proposals coming through from the swiss government in terms of capital requirements that could cost them up to 20 billion u.s. dollars on some calculations. let's bring in bloomberg's alexandria, top lines, what stood out to you from these numbers from ubs? >> it's a welcome returned to profit after two quarters of losses, so it's a good start of the year for ubs, but at the same time they are cautioning

the outlook for the next two quarters won't be so strong. they are predicting a small decline. at the same time, there is this big question mark hanging over the government proposal to help ubs to hold more capital. could be around $20 million and it's still not clear how much they will do. the swiss government has said it will publish proposals in the first half of 2025. until that time, even if they say they have enough capital to continue its capital return plans to give back funds to shareholders, there is a big question, mark -- a big question mark hanging on the plans. tom: that will linger over ubs. they have reiterated that they can complete and stick to the 2024 capital return plans for this year, but as you say the question mark is over 2025. we expect that to continue. when it comes to integration.

they reiterated they hope to get that done. what are the hurdles going forward in terms of costs, in terms of integration as we look to that process? >> ubs is saying that this year will be the complicated year where the costs will come in. it will allow low-grade clients into the ubs systems and then unlock more cost reductions and efficiencies. until that happens we will have to see how much we have. ubs said in the first quarter it has already executed one billion cost reductions and expects 1.5 billion more cost reductions to the end of the year. they are on track but they need to keep pushing to keep this execution -- is complex execution of the merger on track. tom: joining us from zurich on the back coming through from ubs. thank you for the context coming

through and what to look for. we will bring you a conversation that you won't want to mess with the ubs ceo in just under one hours time. at 7:00 a.m. u.k. time on markets today. israel has rejected a cease-fire plan backed by hummus. the proposal falls far from its necessary demands. israel promises to continue military operations after warning civilians to come out of parts of that city. for more i am joined by bloomberg news director in the region. a cease-fire in its entirety, where are we on those bank -- on those negotiations? >> it makes it more complicated. we could see their positions by hamas and israel. israel will see a delegation for further talks but they are wrangling over minor bits of wording over particularly what this means for the longer term, does this pave the way for a

full end to the warrior? is it a sustainable calm? if they cannot agree on that, they cannot agree on the bigger stuff. we are at a very difficult point for the prospects of the cease-fire. israel says it will continue its plan for defensive and route 5 regardless it needs to do that to try to eradicate hamas. we just got word that trips have gone into the rafah crossing -- troops have gone to the ross -- rafah crossing. there is no age of people moving through that important area and that is a conduit to go from egypt into gaza. that's a cutting off of aid into gaza. you can see that these are really preparations going on for israel to start its offensive in lafayette in days, if not, weeks. either way, they are going ahead and it's really putting the pressure on the u.s. and others because they are running out of time to convince israel to agree to a cease-fire.

tom: what is the u.s. role because president biden suggested this will be a red line, significant military operation without moving civilians would be a red line. where is the u.s. stand in terms of its pressure? >> u.s. president joe biden spoke again with the israeli prime minister benjamin netanyahu. that's twice in a couple of days and said to him directly, if you do a big offensive in rafah, i will consider that. they have been strong on their views on the possibility of that offense. they are not stopping the supply of weapons to israel. they say it's a strategic military ally and israel has the right to defend itself to do it needs to against hamas. what else can the u.s. do aside from calling on israel to show restraint when it comes to civilians in that area. they won't cut off military aid to that country. again, the question is about the level of u.s. influence over israel or whether it's using all the influence that it could.

tom: fast-moving events unfolding in that region. bloomberg's news director giving us the latest and the contacts. coming up on your day ahead. 6:30 a.m., back to the earnings story. the germany-based chipmaker, those earnings coming through and we will speak to the cfo of that company, the slowdown in the auto ev market. the china exposure with those issues to be discussed with the cfo. important course of the semiconductor market. at 7:00 a.m. u.k. time, the focus switches to energy on the oil major that is bp with earnings crossing from that company at 7:00 a.m. u.k. time. in the u.s., the big one stateside, disney, those earnings crossing later today as well. coming up, saudi oil giant, aramco's profit in focus at a first quarter results out later today. we have a preview as opec-plus continues with constrained supply.

i will speak to the german the fence about the company's latest earnings and europe's defense spending plans. that exclusive interview at 6:40 u.k. time. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. saudi arabia -- saudi aramco is set to release first quarter results today. analysts will watch payouts and

profits, the oil giant has lowered its profit since the second quarter of last year in line with this opec-plus cuts. let's get the details and preview with middle east energy editor who is in dubai for us, what is the outlook there for profit and dividends from aramco? >> good morning, tom. they are looking for a slight decline probably around 10% according to what the bloomberg intelligence estimates are and that's because aramco has had to cut production because of the opec-plus cuts because of additional cuts that they may try to shore up this market and avoid a buildup of stockpile. aramco is down than 9 billion euros a day and that's what oil prices relatively stable quarter on quarter between the first quarter of this year and last year. we see movement on the price to help that out. on the dividend we are expecting that payout that has been previously announced.

they've got that strong regular dividend plus a special dividend based on the 2022 bumper profits in the earnings from last year. that dividend is laid out and will be stable this year. looking forward there will be room for more guidance on how that dividend is going to develop. aramco has said they hope the base dividend will be progressive, meaning growing over time and it remains to be seen without that special dividend gets factored in and they will look in gardens -- guidance on that. tom: when it comes to reduce production and reduce profits on that front, what is that mean for the story for aramco? quex capex is actually -- increasingly we have seen that cut of the plan to increase saudi aramco's production capacity to 13 million barrels a day, that plan was scrapped or delayed as aramco would like to have it, so they will stick with

12 million barrels a day and that frees up to put in other projects. it looks like you put a lot into the natural gas business. they've got some projects that were already underway toys that capacity, they will keep those projects going and that will make up for the natural decline of oil production so we will look for it to see where that goes, some savings over the project and they are looking to see where that extra cap acts -- extra goes. they are looking at it to go into the dividend to support the saudi aramco spending. we see them posting another deficit, so that dividend is important for shoring up those government funds. tom: bloomberg's middle east energy editor with the set of the earnings. we expect it coming through from saudi aramco. coming up, could xi jingping's

visit to france help with tensions between china and the eu? what the two presidents have, next. this is bloomberg. ♪

>> regarding the palestine, israeli conflict, it's a test of human conscience, the international community must do something, we call for a sustainable cease-fire in gaza. at the same time supporting palestine to become a full member state of the united nations. tom: chinese president xi jingping there in the chinese eater weighed in on the israel-gaza conversation on the public site state visit to france as he tries to reset ties

with the eu. who is standing by in paris covering all of the four us. has there been any progress on the geopolitical front? >> you heard president xi calling for a cease-fire in gaza just as we saw airstrikes and the rougher region in gaza. clearly nothing but success but macron also called for china's support to try to influence the russian president vladimir putin and use beijing's influence to try to end the war in ukraine. it is you repeated that china does not take part in this conflict, was not at the origin of the conflict, but did say they are going to start another round of mediation. however, the chinese president

also warned that the eu should not start a new cold war with the eu and the u.s., aligning their stance against china and russia. in fact, micron had an interesting proposal, which was to call for truth during the paris olympics, global cease-fire proposal, that was met with enthusiasm from president xi who said china and france would try to work together to try to bring cease-fire at the end of july after president xi returns from europe in a few days, the russian president will travel to china, so we will see whether this trip also has an influence in those discussions. tom: that's a geopolitics, what about the trade tensions between the eu and china, have they been addressed, at least to some extent?

>> not quite. he -- ursula was a part of the trail and it does trilateral meeting with president xi in paris in the morning. ursula criticized china's production surplus and see the eu was ready to use all trade instruments to protect itself. president xi immediately responded saying that china does not have any overcapacity issue, there was another official chinese ministry who said the eu commission had been sending the wrong signals with all these probes into the chinese ev market, into the chinese medical devices, but of course we have seen all these trade tensions

and micron still has a firm tone but was using a more inclusive tone, trying to bring china back to the table of those trade negotiations and actually reminding president xi that the eu trade policy remains independent from the united states. so trying to distance the eu from the united states. there was no major business deals announced during that trip , only a few commitments on the cosmetic sector in aviation, but micron had a small victory when it comes to cognac. because as you know, the chinese have started as a response to the chinese ev market, the chinese have started probing to the cognac sector. that was directly targeting paris and during the press conference with president xi, micron said that he was hopeful

the chinese measures against cognac makers would be applied. tom: thank you very much. russia's president vladimir putin ordered the military to carry out combat drills involving tactical nuclear weapons ramping up his confrontation with the west as he prepares for a fifth term in office. the russian leader's inauguration will take place at the kremlin later tonight extending his almost quarter century rule for a further six years. come and get -- coming up, the semiconductor maker will discuss the results. that is next. this is bloomberg. ♪

tom: good morning, this is bloomberg daybreak: europe. i'm tom mackenzie in london, these are stories that set your agenda. ubs saying it expects the merger with credit suisse to be completed by the end of this month. we will speak to ubs ceo sergio in our next hour. meanwhile, italy's unicredit beings with net income for the first quarter coming in better-than-expected. stocks and he shall follow the u.s. hire in hopes the fed will cut rates this year. the yen weakens against the dollar after japan's essex chief says intervention isn't needed if markets are orderly. israel projects a cease-fire proposal backed by hamas hours after the military group agreed to the plan. israel vowing to push ahead with military operations in ruffalo. on the earnings front, a beat coming through on the -- its

latest updates in terms of quarterly revenue, it's a beat on the estimates for nvidia for the second quarter. revenues coming in at 3.63 billion euros, modestly above the estimates at 3.6 billion. we break down some of the segments, the margin result coming through for the second quarter for the semiconductor maker coming in at 19.5% slightly above the estimates in terms of segment margins just shy of 18% on the margin front, slightly more positive. they see the full year revenue coming in at 14.7 billion to 15.5 billion euros. the estimates have been for 15.7 one billion. the forecast coming in softer than the estimates and other lines coming through, total segment profit in the second quarter at 707 million euros versus the estimates of 630 5 million. we know this is a challenge in the environment when it comes to the autos part of the business. this applies to the ev makers

and we will now bring in the cfo standing by for a reaction to these results. i want to speak on the top lines. it is a challenging market environment. talk to us about how this positions the company in the quarter ahead? click thank you for having me. you already talked about q2, so i will focus on q3 and the year ahead ahead as you are asking. indeed, we had to lower our yearly guidance from 16 billion to 15.1 billion. the redaction of 900 billion is do to all divisions. give or take, half of the redaction is coming from automotive where we are still growing this year but at a lower pace. the other half is coming from a weak market environment, which continues to linger in the three

c's communication compute, consumer and on the industrial space. it's a combination of these in segments where we either have a weak market environment or were we have an inventory digestion, which needs to happen at the edge of the distributors on the customers. once this is worked through, we can go back to our structural growth drivers. tom: that is key once this is worked through. he talked about those two challenges and as you said, this is a redhead across the bloomberg terminal right now, it is that changed adjustment with the revenue with the segment result merging outlook below in terms of the forecasts of the business. you talk about these two key challenges, what is the timing for when you see the sales slump in the broader picture in terms of demand semiconductor. when you see that sales bottoming out? >> i think we need to look at it

market by market, division by division. if you look at the development of our revenues, we started at 3.7, we dropped a little bit to 3.6 in the last quarter, for this fiscal quarter, our fiscal q3 we expected growth at 5% to 3.8. they run the numbers to come to the 15.1 mil point. it's a 4 billion revenue line for our fiscal q4. so you see the markets coming back, but it varies. in automotive's there is growth from the electrification for metonymy striving, from the microcontroller business, which is very strong and we are very happy to report we are now globally, for the first time in the history, the number one automotive microcontroller supplier, so this is coming in here we strongly believe in the

structural driver. on the consumer computed commodification's, there are green shoots. of course the ai power business. this is getting back to growth rates. but for the rest, still a weak market and industrial is a late cycle which real -- which will probably see it at the end. it's probably towards the end of the year, maybe even next. tom: the end of the year, the beginning of next when you get those performing. you outline the challenges. on the ev segment, he still see growth in the number of chips with increases. windows that turn around because there is concern that growth in sales start to slow within the ev segment. >> there were concerns with investors who were challenging us and saying why are you growing because the number of cars being produced is flat. we have shown it again and again

and even if we are lowering the growth rate from 10% to mid to single digit percentage rate, there is the growth coming. this is very strongly visible in our numbers. secondly, yes, i acknowledge and we know it and we hear it. see also customers reacting, especially in the western markets. the electrification, the penetration of the electrification is decelerating. we consider that to be a transition area effect, not a structural effect. for us, it's a global market. we have leading market positions in china where it's growing strongly. in korea, not only debts, but also hybrid cars are growing strongly. same in japan. that's why we strongly believe into that growth going forward, even if there are some markets where it's a bit slower than expected. tom: you recently signed a deal over in china to supply them

with power chips, how significant is that deal when you start to see revenues coming through >> it is a significant sign, not only in terms of revenue but the strength and the chinese market. the deal for those who haven't seen yesterday's press relief is all about silicone car mike, packages in the -- and a lot of other product. market controllers and others, so it's a broad-based design with one of the costs which creates a lot of attention these days. but secondly, it just shows how strongly we are growing in china, but also outside china and i can give you another data point, the design win pipeline in automotive and china has outgrown the market point in china over the last years continuously. so there is very nice momentum.

tom: china will be flooding the european market with some of those legacy chips. how are those concerns? >> the china competition is one we are taking very seriously and to make it a little bit blacker why i would probably say ig pts in our industry, to some extent we are benefiting from that silicone supplies side, also the silicone car by substrate deliveries. here, the china competition is already at a pretty good level and they are going into these markets. on the other hand, there are these products like the microcontrollers, which is a very sticky business, there is battery management, radar systems where there is still a huge gap between western players

and chinese players. the last, i would like to make his there are also opportunities to grow with chinese companies outside of china. you know one of the leading companies in china just recently announced that they will build a fab in europe, so there is potential to supply them outside of china. tom: the cfo, thank you so much. coming with a modest beat for the company, but cutting their forecast on a challenging market. thank you for your time. this is aramco, saudi aramco -- it's a miss for saudi aramco, not a big surprise given the production has been curtailed since the second period of last year in line with opec-plus cuts. in the first quarter, net income coming in at 103 billion riyals, the estimates have been for shy of 106 billion. a miss in terms of the first quarter.

they are also sing in terms of total revenue for the first quarter, that was slightly above first quarter revenues but it's the net income that's weaker and they will pay a dividend of 31 billion u.s. dollars, so that's important for the saudi government itself, which is the majority shareholder in saudi aramco. they will pay $31 billion dividend growth in spending targets and gas, but it's a miss when it comes to net income from saudi aramco. the defense contractor reports record order backlog thanks in part to european governments boosting defense budgets in the face of that russian aggression. joining me for an exclusive conversation. that is next in the defense space. this is bloomberg. ♪

tom: welcome back, defense contractor has reported a near doubling of its audit intake compared to the previous year. a figure in line with estimates. the company has benefited from major orders of its advanced radar sensor technology, which is used in everything from air defense systems, euro fighter jet. the leopard too. very pleased to talk about the defense space more broadly as well in an exclusive conversation. the ceo, oliver, thanks for joining us. we work through the results. in terms of the order backlog. a record, what are you putting in place, what measures do put in place to address that backlog in terms of ramping up production? quex first of all, good morning, tom. really appreciate to be here. our three and results show yet

another solid performance and it underlines delivering on promises looking out the order backlog i can truly stay of the top priority jet joining a ceo our team is clear that the life and limb of soldiers out there in a deteriorating security environment depend on us. so we have set three priorities of operational excellence, so we are scaling our production on one hand, so a good example is that for the radar you have just mentioned we scaled a fivefold increase over the past years from annual production of three radars to 15. so of course we are looking at our supply chain, which has an impact on working capital, we

are building new infrastructure in germany, all of that to really scale. on the other hand, we are investing in the technology, digitalization, that is keyed to stay at the top notch. tom: you recently took over as ceo. when you look at the backlog coming in with the fresh pair of eyes, what is it make you think in terms of how much capex you are prepared to put in play to address at what are the key sticking points? quex overall i can say in the timeframe of 22-25, we plan to invest roughly one billion into the ramp up. that is roughly 500 million in technology. it is roughly a quarter billion

on supply chain. really keeping our supplies stable. the good thing is that we have quite a strong depth in our production and value chain and we produce our chips on oil and the factory. with that, i think we have a very decent control on our supply chain. i mention the last quarter billion goes into infrastructure. tom: we are facing geopolitical risks throughout their russia in ukraine or tensions with china. how is all of that impacting the business? >> as you can see from our record intake, 606 t 5 million in the strong backlog, we see a long term trend really increasing this -- defense spending. recently norway has announced that it would increase 80% over

the next 12 years, germany has spent the extraordinary budget. we see that poland is going to 4%, so all of that is really a long-term trend where we see those investments and i think with our technology, we are really leading in the market, so that is giving a strong growth perspective. tom: you talk about defense spending coming through from germany, your whole country -- home country. do you think the prospect of another trump presidency in the u.s. is another wake-up call for europe in terms of getting its act together on defense. >> truly this is one element, but germany keeps strong allies and strong transatlantic relations. i did my military training in the u.s., so we still have close ties. but indeed, i think europe has

to invest in its independence looking at european security and defense capabilities and that is what we see at the moment. and as the national champion, with an anchor shareholder of the german government is clearly one player on that team. tom: there has been around up of alleged russian and chinese spies across europe, a company like yours is targeted by espionage operations, have you seen a tick up in espionage attempts targeting your business? >> it is really internally looking at the technology and having a very high security standard. i can't at the moment. however, as you know, our segments beside radar is electromagnetic warfare cyber. so here we use our capacities

that we sell to customers, also to internally secure our company, our ipr's and everything. so without regards i think we are strongly positioned. tom: ceo, thank you for that record order backlog. plenty more coming up. this is bloomberg. ♪

>> for me it's really looking at the totality of the data, not just looking at an employment report, cpi or other piece of information, you want to make sure we look at the broad picture. we have maximum employment and price goals. we want to see all the data and information that speaks to all of that and as the data comes in, hopefully it will be moving in the direction we want to see

both on inflation and in terms of restoring balance to the economy and we will make our decisions based on that. tom: and that was newark's fed president john williams on his expectation as to where the fed goes from here. beats coming through from unicredit and ubs as well. dropping out 5:45 u.k. time. it was a be in terms of first quarter on net income, profit, revenue. we were looking for lines in terms of where they will continue to return that capital to shareholders and return to the swiss government. ubs says they can continue to meet expectations. they expect the number 1.5 billion by the end of this year and they expect that merger of ubs and credit suisse to complete by the end of this month, may 31. the line coming through in terms of the capsule effects, they cannot yet fully assess the capital effect from new swiss. report on the ground tells us that it will come through the detail likely at the end of this

year are the first part of 2025 in terms of those government plans. the expectation is if they are put into force it could cost ubs up to $20 billion. we are speaking with the ceo of ubs, surgery on marty in just a few minutes. 7:00 a.m. u.k. time on markets today. he will have been quizzed on all of those issues around the capital story, whether or not there will be further pushback. the beat from ubs, that conversation in a couple of minutes. markets today across all of these various that clip -- various asset classes. this is bloomberg. ♪

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europe. a lot of corporate news to get through. counting you down to the open. let's talk about what you need to know this tuesday morning. ubs is outperform the expectations of the first quarter as wealth and investment banking feet what we hear from the ceo and get his take on how his pivotal year is progressing. investors are watching developments in the middle east as israel takes control of the key crossing into or offered. president xi jingping is urging france to help china avoid a new cold war as the european tour continues. we will have the latest from paris and hear from a former deputy government -- governor of the pboc. anna: markets are trading slightly to the upside through the asian session. european futures plant higher hoping to follow the fed higher. my expectation of the fed cut restored to these markets. the aussie and then the yen lose ground shifting expectations around the in slightly less

hawkish commentary. markets today starts now. tom: the earnings story is ubs and in the first quarter, the net income beat almost tripled estimates, 1.8 billion. the estimates had been a little shy of 600 million. so a really significant be in terms of net income for the first quarter. a little bit of shock when it came through to the wealth income. that came in a little bit below estimates. the investment banking part of business doing better. 500 55 million. the return on tangible equity of return of 9%. equities had been for 3% and on the asset management story, softer than estimates but the top story, top line net income strong in the first quarter and they have recommitted to be able to return that capital to shareholders. the original plan they can stick

to it in 2024. and they continue over what the government will do. guy: sergio ermotti described this as a pivotable -- a pivotable -- a pivotal year. however, the offense appears to be at this point what is happening with this new regulatory requirement which could be coming through from authorities. i don't think they will really know what happens there until later on in the year and that could be pivotal. tom: potentially across of $20 billion. that is the announcements from bloomberg. guy: we will see exactly what sergio ermotti has to say. we will get that later on in this hour. let's hear from the ceo, is he pleased with these results? quex very pleased with the government on starting the year. i think we are making very good progress on our integration plans, but also it was g