Risk per file in the market, and were not seeing any indication for the moment of worsening in our cost of risk. They post 2. 8 billion, doubling its profit as they tell cnbc euros banks have weathered the storm. If you look its basically the same for the large banks, whereas in europe its for all central banks, and that is why theres absolutely no Systemic Risk in europe european leaders give a lesson as chipmaker inindivinindividual i ion starts construction. Nvidion says they mortgage stauft. We must reduce and invest into our deem because the Semiconductor Industry doesnt stand still. And there are fears amid the First RepublicBank Collapse and the fed looks at a tenth and final hike hi, there, everybody, a warm welcome to street signs. This morning were off to a strong start in terms of equity trade. The stoxx 600 is rebounding about 0. 5 , not enough to make up for the losses we saw yesterday, but a decent start nevertheless yesterday the main benchmark dropped 1. 2 , the worst daily performance in over a month. It broke a threeday win streak and it came as fears came to the street side and weighed on trade there and in turn in europe. Now today a focus on both sides of the atlantic turninging to Federal Reserve which will include a twoday policy meeting today. The market is expecting a tenth and final rate hike. How will they respond . Thats certainly top of mind for investors and how they signal around whats to come after todays meeting. Turning to the different markets here in europe, its a pretty broadbased rally. Every major region is trading in the green. Ftse 100 is up 0. 1 . The ftse up more than 1 theres one stock at the heart of that rally, and that is unicredit. You can see what the spread lolook looks like on the downside were seeing a little bit of downward trade in autos and travel and leisure, but clearly its higher this morning. Heres the picture youve got unicredit out in front, 6 , the best performing stock not only among the banking names but in all of europe this morning. Interesting outside of unicredit were seeing stable credit it wasnt just the regional lenders that took a sizeable hit. We saw a plunge. The big lender stateside also traded lower this stability in the european Banking Sector is notable. Lets 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. Its pretty telling, julianna its a strong show of support for the Investment Community, and why wouldnt 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 theyre 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. Were talking about a huge outperformance today only adds fuel to the fire here and when i spoke to the ceo, he said that they have been surprised to a certain degree about how strong their net interest margins had been, and i wondered whether or not this was going to change in coming months given were probably heading toward the end of the hiking psyching into ecb. He said in their minds they do think net interest markets should peak toward the end of q2, beginning of q3. Remember, this is a key issue we talk about in the context of banking stocks their deposits have been stable, and because of that, they havent had to raise deposit rates as much as they had anticipated toward the end of the last year, which has meant juicier margins for them on the Macro Economic environments, there is no risk they dont see risk of deteriorating cost of risk one other very strong element to pick up on, julianna, is theyre sitting at 16 percentage points. Of course, this is partially one of the reasons why theyre able to do so many share buybacks and give so much back to the investors. And then i thought perhaps also this could open the possibility of some m a domestically lets take a listen to what he had to say. Its important to say that the share buybacks are an outcome. Theyre not an input the bank is massively improving its profitability and capital generation we felt we would generate 4. 5 billion a year in foreign capital. Were generating 7. 5 billion per year so that is allowing us to increase share buybacks and increase our distribution while being prue confident and increasing base capital that we have why distribution versus m a versus anything else because we believe as a Strong Management Team that our stock is cheap so if we need to invest on capital, were better off investing it in our stock that we believe is cheap sri warding. Our residuals are continuing to improve, rather than m a that we find expensive. So its not a question of m a and share buyback. Its a question of what is the better Value Proposition, and it sounds to me it comes back to a question of value but at the same time, you are sitting on 16 cte one ratio what conditions would you need to see so, i wouldnt put in capital to play with given that its not mine, it belongs to my shareholder. But i would say the following. At the moment, we are increasing distribution while increasing capital as well. Very few people are doing that and were doing that because the environment is uncertain and we dont want to take too many risks. But were also doing that because that means we can keep our distribution going for a long period of time, ie, if were funneling our distribution while increasing capital, even if in any given year we miss, we can continue making it so thats the basic scenario if we were to come to a scenario where we could put in respect buy earnings of the same quality of the earnings that we have internally and at a similar price and transfer to the bank, we would look at m a, and i do believe our shareholders would be happy about it. But until we see that, we dont do that. We either see banks that trade at our same multiple but are very tight on capital and that are not conservatively provisioned as we are. All we see banks that trade much higher than our multiple, and still have some of those issues some of when we look at the numbers, buying our shares is the better opportunity. Very clear. Well, ain the last couple of months, there has been a lot of m a activity we saw jpmorgan. Ubs acquired Credit Suisse for very cheap prices. I just wonder to your mind whether you think we are going to see more of these types of acquisitions of banks that are being acquired at very cheap targets. I do think that those situations are very different from what you have in the rest of europe at the moment. So in the u. S. , it is about distressed banks being rescued i dont see any distressed bank being rescued in europe. I do think that in the u. S. , judging from yesterday, there may be more, but this is the stronger bank rescuing the weaker bank with a Value Proposition that works for both the taxpayer and the shareholders of the buying entity in europe we do not have anything obvious at the moment, so that kind of m a is not occurring. If you look at switzerland, m a occurred for exactly the same reason. Distressed and stronger. You may say more in the u. S. , in my opinion in europe, that kind of acquisition is not going to be the driver of consolidation. I think the ceo mentioned a couple of things that are really worth highlighting here. The first is he does not see any distressed banks in europe that is quite a strong statement. He says judging from yesterday, there might be more stressed situations in the u. S. , but he is not seeing it happening in europe so that is one point, i think, that is noteworthy, coming from the ceo. The second point was with regard to the buybacks, and thats the fact they had been increasing earlier on but he does say investing in our stock at this point is a better proposition than looking to take that capital and invest it elsewhere, ie, potentially m a deals where its a lot more expensive. Reading between the lines, certainly their door is open to m a activity, but it sounds like theyre waiting for a more attractive Value Proposition, and this is a bank thats been linked up to a number of local banks. One bank is on its own trajectory another bank that a lot of papers are talking about is bpm. Theres not a conversation that a deal or tieup is going to happen any time soon, but, of course, they are sitting on a tremendous amount of capital, and they have the firepower to do it should they decide to go down that route. Joumanna, thank you so much a story to unpack and look forward to thank you so much for that reporting then from joumanna. Lets shift attention to france where bmp has recorded quarterly net profit of 4. 4 billion euros. Thats more than double a year ago. Boosted by the sale of its u. S. Retail division. Charlotte is joining us in studio for a bit more on this one. Charlotte, definitely reporting a lot more revenue as well so its starting to look fairly healthy. Yes and results are basically above expectations as you say, the profit, 4. 4 billion. But stripping away those gains, in february, selling bank of west, 16 billion, the net distributed net income, 2. 8 billion, theyre looking at different parts of the business by bank of pariparibas. Again, assuming a picture to what weve seen in previous quarters at bank of paribus. In the banking kugz the revenue was up 6 . The retail income is slightly weaker compared to the other part of the business because of the french Mortgage Market is being different to other markets because they have fixed mortgages for many, many year, for example. As i said, the cost of risk was lower, down 1. 4 , operating expenses slightly higher with higher costs up 5 overall i had a chance to catch up with the ceo of bank of paribas, and we discussed the results of the bank. It basically forms the bedrock of the bnp paribus theyre up by 5. 3 a Company Leads to 1. 5 points. As you know, the group has a solid balance sheet. Cost of risk remains low common equity to 13. 6 . All of these are in the concept. 2. 8 billion euros and an earnings per share of 19 euros basically it is the performance of our businesses creating a strong growth at 4 . Ips, 0. 6 . All of this leads to 5. 3 of the growth of the group i mentioned earlier. Thats basically in a nutshell the strength of the delivery of bnp paribas. Lets try to drill into that a little bit youre looking at commercial banking and services i think from analysts were expecting in this quarter that it would offset some weaker ones, some of the weaker french retail prospects it looks like they were both resilient. Yes, indeed if you look at cpbs, theyre serving our clients with a diverse set of promises. You saw a good momentum for the commercial banks and Strong Performance of the specialize businesses, particularly if you take that into consideration also look at the steep and increasing client acquisition of new activities so that is why all in all the cpbs had a very Strong Performance with 6 revenue uptick. You look at the revenue up 4 , we saw it performing well, of course, a high Interest Rate. Equities down 19. 5 . Again, similar to what weve seen in previous quarters. Do you see the trend to continue for the rest of this year . Listen, our main impact is that we now have a full set of krfss in cnb, and were there to serve clients. Were solid like basically no one else, and were there to serve. Therefore, were present and you have seen the pickup overall, and so were there to continue to serve and to continue to have our market share stepping up. That was the cfo for Bnp Paribas Bank interesting timing there for them now benefiting from the gains of that sale he said he didnt see any Systemic Risk when it comes to banks in europe. Finally bnp paribas said they reconfirmed the target they gave in february, seeing net income to grow by more than 9 per year to 25 and an increase above 20 . Finally bnp paribas confirming the buy sback, going green and red. Certainly the numbers were slightly above expectations. A watch factor. Not just the earnings. Charlotte, thank you so much for the breakdown and that interview. We are going to take a short break here on street signs, but when we come back, we are going to be talking about breaking new ground. Stay with us we will be right back. Hi. Im shannon storms bador. When we started selling my Health Products online our shipping process was painfully slow. Then we found shipstation. Now were shipping out orders 5 times faster and thanks to shipstations discounted rates were saving a ton. Honestly, we couldnt do it without shipstation join over 100,000 Online Sellers who get ship done with shipstation go to shipstation. Com tv and get 2 months free. Ususivivenenesess,s, e eququatatioion. N. Tatal l mumusisic]c] welcome back the ceo of infunyun has told europe they must stand up to the sem semiconductor space. This as they began construction on their new 5 billion dollar facility tapping into funds from the eus new c. H. I. P. S. Act announced in response to the u. S. s Inflation Reduction Act aany ta joins us now for a little more on this story. Its oa big, big investment. Reporter yes, exactly. The reason behind that and the swift implementation of the investment is theyre seeing chip demand going strong for many, many years to come if you look back at a longer time, perhaps like 20, 30 years, the chip industry was undergoing loads of cycles. We have the super cycle demand also heat pumps are actually in need of loads of semiconductos especially those at infineon theyre called Power Semiconductors different from memory semiconductors. When i spoke to the ceo of infineon yesterday, i asked him how he sees the situation on the market when it comes to scare tell of components perhaps take a listen to what he had to say to me. Right now you have oversupply in certain areas like memory products, and other areas were still in shortage. Some of the shortages will pay out. However, in terms of power conductors, weve seen for years issues and were trying to best improve our supply in order to serve our customers as best as possible. How much are you concerned about higher input prices versus higher commodity prices, and how important is it to source them exclusively as well for you because of the scarcity of certain commodityies . On the commodities side were setting up of course, its a burden on our on our business at the same time here the sectors get more and more expensive, and we need to pass this on to our customers, but i think its understood that semiconductors while invests so much cannot be or need to have a fair price. Yeah, the pricing would be my next question given that theres still shortages in certain managements. Would that mean you have higher power pricing going forward, meaning you could raise prices i think were striving for fair prices. Were going for longterm commitments with our customers and therefore try to balance things there are spots in the market, so called Major Sourcing where things are basically determined every other day, but thats for infineon, a very small focus our focus is longterm agreements, for example, with the automotive industry. Reporter so the dhee claired plans by the European Commission is to boost production of semiconductors in europe substantially. Currently 10 of production comes from europe and that should actually grow to 20 by the year of 2030 and here comes the european c. H. I. P. S. Act in play because, of course, many other jurisdictions, especially the United States, are deploying a huge amount of subsidies in order to lure investment into their region, and now europe has come up with their own plan. I also called up the Prime Minister and i had to ask him how important the european c. H. I. P. S. Act is actually for the decision to have those huge investments. Translator the european chip cycle the gamechanger in the world of lelectronics. Now europe can start over again. We can see that in many areas of the world. Europe was very reluctant for a long time and also concentrated on their own Market Competition happens globally it was a very important de decision reporter its the biggest class of semiproduction protection in europe we have universities, we have the institute, which is doing Groundwork Research here on the ground, but we also have other Big Companies producing. It has a longstanding tradition that reached to boost semiconductors thats go back to the ger. It was also decided by the infineon ceo, which is one of the reasons why they initially cave here to dresden. Thats fascinating stuff. Thanks so much for the comprehensive reporter. Were going to break down more of todays earners. Thats coming up after this short break. Welcome to street signs. Im Arabile Gumede with Julianna Tatelbaum in london. Joumanna is in milan these are your headlines. Unicredit surges to the top of the stoxx 600 after the italian lender recorded a profit the ceo tells me the worst of the banking crisis is over. We see a much more benign risk per file in the market, and were not seeing any indication for the moment of worsening in our cost of risk. They post 2. 8 billion euros in First Quarter doubling its profit as the ceo tells cnbc euro banks have weathered the storm. If you look, its basically done for all large banks thats why theres absolutely no Systemic Risk in eur