EUROPEAN OPEN: Some of BP/ LN board favour breakup; DTE GY delays TMUS merger bid; STM profits up, sales outlook beats; VOW3 GY operating loss; ADS GY raises profit view; ABI BB Q3 volumes rise; GLE FP Q2 net income beats; AIR FP profit beat, sales miss

EUROPEAN OPEN:

• TECH: Microsoft (MSFT) shares rose 4.4% in extended US trading after stronger than expected earnings and revenue, driven by robust Azure cloud growth and AI demand, alongside an upbeat cloud outlook, and continued positive free cash flow. Samsung Electronics (SSNLF) shares fell overnight after a disappointing lack of detail on shareholder returns, while weaker-than-expected profits and concerns over heavy AI infrastructure spending overshadowed a bullish memory chip demand outlook. Oracle (ORCL) shares surged on Wednesday in regular trading hours, by over 10%, after the company eased concerns over its heavy AI infrastructure spending by outlining plans to limit additional financing, reduce capex and turn free cash flow positive. ServiceNow (NOW) shares plunged almost 19% in US afterhours trading as an underwhelming subscription revenue outlook, weaker than expected bookings and an earnings miss heightened investor concerns about AI disruption, despite growing adoption of its AI products. Marvell (MRVL) is in advanced talks to acquire Nvidia (NVDA)-backed Lumentum (LITE), potentially announcing a deal next week, Bloomberg reports. STMicroelectronics (STM) Q3 EPS rose to USD 0.37 (prev. 0.29), with revenue at USD 3.76bln (exp. 3.71bln). Sees Q4 revenue at USD 4.15bln (exp. 4.11bln), with gross margin projected at 39% (exp. 38.2%).

• COMMUNICATIONS: T-Mobile (TMUS) shares rose 2% in extended trading after stronger than expected earnings, revenue and postpaid subscriber additions, alongside an improved profit and free cash flow outlook. Elsewhere, Deutsche Telekom (DTE GY), which owns over 50% of T-Mobile, has delayed a formal bid to combine with T-Mobile US, partly due to works council opposition, Bloomberg reports. WPP (WPP LN) Q3 revenue +0.5% Y/Y to GBP 3.274bln, revenue less pass-through costs -2.1% LFL to GBP 2.411bln; maintained guidance for low-to-mid-single-digit H2 LFL declines, with Q4 towards the better end of this range; targets a return to growth in 2027. Alphabet (GOOG) shares plunged 9.7% in extended US trading after weaker than expected search advertising revenue, slowing growth amid increased AI Mode usage and worsening negative free cash flow overshadowed strong Google Cloud performance, while plans for significantly higher AI spending and pressure on cloud margins added to investor concerns.

• CONSUMER CYCLICAL: Volkswagen (VOW3 GY) reported a Q3 operating loss of EUR 5.86bln (exp. 5.67bln); 9-month revenue fell to EUR 233.4bln (prev. 238.6bln), while operating profit dropped to EUR 71mln (prev. 5.4bln); results included EUR 6.4bln in Porsche goodwill impairments, and EUR 1bln in China asset write-downs. CEO plans 100K job cuts and up to four German plant closures. Ford (F) shares were little changed in afterhours trading as stronger-than-expected earnings and an improved FY outlook were offset by expectations of flat profitability next year amid persistent commodity inflation, rising logistics costs and pressure on vehicle margins. Toyota (TM) reported September global sales were down by -2.9% Y/Y to 921.8K vehicles; production declined by -4.5% to 989.2K. Toyota and Lexus sales in China -20%, marking eight consecutive monthly declines, despite growth of +8.6% in North America and +1.8% in Japan. Renault (RNO FP) Q3 revenue EUR 11.6bln, broadly matching estimates, while group sales fell 6%. Dacia deliveries declined 13% amid intensifying competition in Europe and South America. Maintained its FY26 operating margin guidance of around 5.5%, and continued its electric vehicle strategy despite challenging market conditions. Geely Automobile (GELHY) Q3 net income +25% to CNY 4.84bln, as exports nearly tripled. Overseas shipments reached 323.4K vehicles, representing roughly 40% of sales, offsetting intense competition in China. Adverse currency movements reduced profit by approximately CNY 400mln, while potential EU restrictions on Chinese hybrid imports pose further challenges. Adidas (ADS GY) Q3 sales rose to EUR 7.25bln (prev. 6.63bln), with operating margin at 13.9%, up 2.8ppts; apparel revenue +19%, and sports gear +14%, while footwear stagnated. Raised its FY26 operating profit view to EUR 2.5bln (prev. 2.3bln), expects currency-neutral revenue growth of 9-10%. DoorDash (DASH) could announce an agreement to acquire Instacart (CART) as early as Thursday, CNBC reports citing sources. Bloomberg said DoorDash has also brought forward its Q3 earnings release to 29th October (from 4th November) amid the talks to acquire Instacart for roughly USD 17bln. eBay (EBAY) shares rose 4.7% in extended trading after stronger than expected earnings, revenue and gross merchandise volume, alongside an upbeat holiday-quarter outlook, supported by growing demand for second-hand goods and continued e-commerce momentum.

• CONSUMER STAPLES: Anheuser-Busch InBev (ABI BB) Q3 organic volumes rose 0.4% (exp. 0.5%), as weak beer sales and subdued demand in China offset growth elsewhere.

• FINANCIALS: Societe Generale (GLE FP) Q2 adj. net income EUR 1.9bln (exp. 1.7bln), revenue EUR 7.2bln (exp. 6.8bln); equities trading revenue +46% to EUR 1.2bln, fixed income trading revenue -21% to EUR 474mln. ING Groep (INGA NA) Q3 net income rose 3.5% to EUR 1.85bln (exp. 2.01bln) amid higher costs and loan provisions; the bank plans 400 job cuts, a EUR 1.65bln buyback and EUR 250mln dividend. It maintained revenue guidance above EUR 24.5bln for FY26, and EUR 26bln for 2027. BBVA SA (BBVA SM) - Q3 net income EUR 3.02bln (exp. 2.98bln), net interest income EUR 8.08bln (exp. 7.77bln); higher interest income and fees supported profitability. The bank is focusing on expanding existing businesses following its failed takeover of Banco Sabadell. Lloyds (LLOY LN) Q3 statutory pretax profit GBP 2.33bln (exp. 2.29bln), net profit GBP 1.71bln (exp. 1.67bln), underlying NII GBP 3.81bln (exp. 3.83bln), net income GBP 5.07bln (exp. 5.11bln), other income GBP 1.69bln (exp. 1.70bln) and operating costs GBP 2.37bln (exp. 2.40bln). CET1 stood at 13.3% (exp. 13.4%); FY26 guidance remains on track.

• INDUSTRIALS: Airbus (AIR FP) Q3 EPS printed EUR 1.70 (exp. 1.67), net income EUR 1.34bln (exp. 1.30bln), revenue EUR 17.47bln (exp. 17.91bln), adj. EBIT EUR 1.77bln (exp. 1.78bln); maintained FY26 guidance, including approximately 870 aircraft deliveries, and expects sufficient engines from RTX’s (RTX) Pratt & Whitney despite ongoing supply chain challenges. FedEx (FDX) shares slipped in afterhours trading amid concerns over declining margins and rising transport costs, driven by higher trucker rates, record diesel prices and driver shortages, which overshadowed stronger than expected earnings and an upgraded profit outlook.

• ENERGY: Shell (SHEL LN) Q3 adj. profit USD 10.814bln (exp. 10.23bln), adj. EPS USD 4.03 (exp. 3.97); it saw record refining margins of USD 42/bbl (prev. 24) and higher LNG prices, which supported earnings. It reduced its net debt to USD 39.7bln (prev. 41.8bln); announced a USD 5bln buyback, and maintained FY26 CAPEX guidance at USD 23-25bln. TotalEnergies (TTE FP) Q3 adj. net income +127% Y/Y to USD 9.10bln (exp. 8.9bln), adj. EPS USD 4.03 (exp. 3.97), adj. EBITDA USD 17.81bln (prev. 13.2bln); production rose over 3% Q/Q to 2.474mln boe/d. It authorised USD 2.5bln of Q4 buybacks, maintained its EUR 0.90/share interim dividend, and confirmed FY26 CAPEX near USD 15bln. Some BP (BP/ LN) board members favour breaking up the company amid investor pressure to improve returns, Semafor reports; CEO O’Neill reportedly opposes the proposal, while the full board has not formally discussed a breakup. No decision has been made, and BP may ultimately decide against pursuing the plan, Semafor said.

• MATERIALS: Wacker Chemie’s (WCH GY) Q3 sales EUR 1.47bln (exp. 1.48bln), EBITDA EUR 217mln (exp. 181mln; all business units improved Y/Y, primarily driven by higher prices and increased volumes. Maintained its FY26 EBITDA outlook at EUR 625-750mln (exp. 699mln).

• EVENTS: EU-Canada summit.
• DATA: In Europe, Eurozone sentiment indicators are due. In North America, US Q3 advance GDP (exp. 3.2% Q/Q, prev. 2.2%); September PCE is expected to rise 0.5% M/M (prev. 0.3%), and 3.6% Y/Y (prev. 3.4%)); September core PCE is seen rising 0.3% M/M (prev. 0.2%), and 3.1% Y/Y (prev. 3.0%); personal income is seen up 0.3% M/M (prev. 0.2%) while personal spending is expected to rise by 0.6% M/M (prev. 0.9%). Weekly initial jobless claims are seen ticking up to 199K (prev. 194K), and continuing claims are seen easing to 1.72mln (prev. 1.728mln).
• CENTRAL BANKS: The ECB is expected to hold its deposit rate unchanged at 2.50%; President Lagarde will give a post-meeting press conference; ECB’s Cipollone also speaks today.
• SUPPLY: US auctions USD 44bln of 7-year notes; Italy offers EUR 5-6.5bln of 2031, 2032 and 2036 BTPs, as well as EUR 1-1.25bln of 2036 CCTeu.
• ENERGY: EIA weekly natural gas storage data will be released (prev. 77bcf).
• EARNINGS: Today’s earnings docket is heavy, and includes: Amazon (AMZN), Eli Lilly (LLY), Mastercard (MA), Intel (INTC), Merck (MRK), Caterpillar (CAT), Linde (LIN), Gilead (GILD), Sandisk (SNDK), Bristol-Myers (BMY), Altria (MO), Starbucks (SBUX), Stryker (SYK), Trane Technologies (TT), Intercontinental Exchange (ICE), Mondelez (MDLZ), Strategy (MSTR), L3Harris (LHX), Coinbase (COIN), Illumina (ILMN).

This is the morning wrap format rather than a single event: a dense earnings session with overnight US prints and European quarterly results, and the historical read is that such days trade as a collection of idiosyncratic stories until a common thread emerges. The thread worth noting is the split between AI-linked capex stories and everything else: on past heavy prints of this kind, names guiding higher on AI infrastructure spend have tended to be punished on margin and free cash flow concerns while those showing monetisation have been rewarded, a distinction that has repeatedly driven dispersion within the same sector rather than a uniform direction. The board-level breakup report at BP and the delayed Deutsche Telekom bid for T-Mobile are the other items with a known pattern: early-stage reports of this kind typically see initial moves fade unless a formal process or board confirmation follows, and works council opposition in German corporate combinations has historically been a genuine rather than theatrical obstacle. For the tape itself, the sequence that matters is the advance GDP and PCE prints into the ECB hold, where the press conference has tended to matter more than the decision when rates are expected unchanged. The heavy remaining earnings docket, with megacap tech and payments names still to come, is the kind of lineup that has tended to set the week's tone more than the morning's scattered beats and misses.