Karen Tso

CNBC Europe Anchor...swapped bullish Asian markets for all the austerity and debt action in the Eurozone.

[Karen Tso @cnbcKaren]

@builtbyjames60 @amazon @Meta @Google Back Mon

[Karen Tso @cnbcKaren]

What’s the opposite of techtastic?

This week everything mattered.

•Negative free cash flow from @amazon, Alphabet, @Meta

•hyperscaler capex intensity

• earnings misses

•stock technicals - death cross on Alphabet

•shrinking search moat @Google

*@ServiceNow reigniting SaaSpocalypse

[Karen Tso @cnbcKaren]

@TinaFordham1 @amazon @Meta @Google Love it 😻

[Karen Tso @cnbcKaren]

@ghulamio @amazon @Meta @Google That is a whole separate post! @binance saying it was a complex hack, not a single laptop breach. So perhaps a heist worthy of a movie 🍿

[Karen Tso @cnbcKaren]

@nsense2020 @amazon @Meta @Google I loved our on-air gossip session. Will try and post later

[Karen Tso @cnbcKaren]

@nsense2020 @Lagarde And we are not at the end of the book yet

[Karen Tso @cnbcKaren]

It’s ECB day - everyone is throwing “sand in the gears” here (Warsh quote re the Fed raising rates) and the sticky granules are hard to remove.

High energy prices, French borrowing costs, Chinese competition hurting EU industry.

Expect a hold but how does the central bank see the economy? Unlikely we will get a solid to strong upgrade in commentary like 🇺🇸.

Are wage pressures amid sustained inflation the next shoe to drop?

On-air 1pm London time.

[Karen Tso @cnbcKaren]

@craigmuller01 👋

[Karen Tso @cnbcKaren]

Is AI bolstering earnings in Europe this quarter?

Yes.

I spoke with major European players @StanChart @bancosantander @Novartis @Dassault3DS

Santander said it could see a €200m contribution from AI.

StanChart pointed me to the gap between income and expenses which will grow wider in coming quarters.

Dassault Systemes CEO joined us on set today. @IanKingBusiness

[Karen Tso @cnbcKaren]

Early pre-show coffee run, on Squawk Box Europe now with @IanKingBusiness see you soon!

[Karen Tso @cnbcKaren]

@CommodMkt 🙏

[Karen Tso @cnbcKaren]

Discussing elevated energy prices and the 'revenge of the old economy' trade with Jeff Currie …here is the link. https://t.co/Cwk82OoQ2v

[Jeffrey Currie 🆔++ @CommodMkt]

Higher for longer - that was the core message in my discussion with @CNBC Squawk Box Europe this morning.

Everyone is focused on the spot price of oil. But look further out: calendar 2027 Brent is holding around $97 a barrel. That’s close to $100 priced in for an entire year, not simply a short-term spike. That has implications for everything from industrial and agriculture production to transportation costs and inflation in the months ahead.

Now look at energy equities. The Munificent 7 are hitting all-time highs as the back end of the oil curve approaches $100. This is looking increasingly structural, not transient. It's the Revenge of the Old Economy in action.

The old economy is short-duration, asset-heavy and benefiting from higher commodity prices, whereas the new economy is long-duration, asset-light and increasingly exposed to higher interest rates and inflation.

The irony in all this is that the old economy is fuelling the new economy. AI needs electricity, transformers, copper, high-voltage cables and critical minerals. None of that exists without the physical world.

‘Generalists’ in the market are beginning to recognise what specialists across the physical economy has been telling us for some time: higher for longer isn't just centred on bottlenecks and disruption to the flow of hydrocarbons out of the Strait of Hormuz. Instead, it’s a structural shift that is likely here to stay.

We’re electrifying the world for many reasons, chief among them the so-called energy transition. The original driving force of the transition, led by the Carter administration, wasn’t the need to adopt clean energy with climate change in mind; it was driven by an urgent need for energy security in response to the oil shocks of the 1970s.

We’re seeing a repeat today: the crisis in the Strait of Hormuz and bottlenecks elsewhere, impacting our ability to source and transport hydrocarbons, is forcing states to turn to electrification.

Great discussion with @cnbcKaren and Steve Sedgwick - thank you for having me on.

[Karen Tso @cnbcKaren]

When will AI genuinely help drug discovery? 10-20 years says @Novartis CEO @VasNarasimhan who acknowledged the improvement in speed but highlighted the 6-7yrs study of people still required to see if drugs will work.

More interesting for the short-term was how does AI benefit corporates?

Narasimham said Novartis has had the first quarter where AI has improved the P&L on a tangible basis.

Narasimham is a board member of Anthropic but was not commenting directly on Anthropic in our interview with @CarolinRothTV

Another great show with @IanKingBusiness

[Karen Tso @cnbcKaren]

@nsense2020 Only up to pg 3 but highly entertaining so far!

[Karen Tso @cnbcKaren]

Having dinner with S-1 ..,yep Anthropic IPO doc.

First bite…a hint of ESG lingo not a purely profit-maxer? Has anyone invested in frontier labs yet to feel good?

Anthropic's unique approach to building a company and operating in the world, and the ways in which our behavior may differ from that of a purely profit-maximizing company.

[Karen Tso @cnbcKaren]

Second bite I choked on…humans are running short of good ideas! 💡 Or did I get the wrong take on this???

Productivity growth in advanced economies has stagnated in recent decades, partly for structural reasons and partly because new ideas seem to be harder to find. AI could reverse this trend.

[Karen Tso @cnbcKaren]

Having dinner with S-1 ..,yep Anthropic IPO doc.

First bite…a hint of ESG lingo not a purely profit-maxer? Has anyone invested in frontier labs yet to feel good?

Anthropic's unique approach to building a company and operating in the world, and the ways in which our behavior may differ from that of a purely profit-maximizing company.

[Karen Tso @cnbcKaren]

Monday show…Did @elonmusk slam the door on Neocloud funding? Musk raised $40b in debt to buy GPUs and predicts a “guppy-level death and consolidation” for neoclouds. Guppy’s live for 2-3yrs on average …5yrs under ideal conditions. You do the maths!

Spoke to @MayorofLondon about a pedestrian free Oxford Street. That means no e-bikes and scooters 👏
Standing by for brutal traffic, hope to be pleasantly surprised 🤞

Talking to @TinaFordham1 who predicts a long night counting ballots in swing states at the midterms.

[Karen Tso @cnbcKaren]

@ignasliw @SAP @Barclays @Roche @nokia @galderma @yara @Kuehne_Nagel @ChrstnKlein Riots too are reflecting these cost of living pressures.

[Karen Tso @cnbcKaren]

Super Thursday of earnings in Europe!
I spoke to 7 CEO’s as numbers broke - @SAP @Barclays @Roche @nokia @galderma @yara @Kuehne_Nagel
Takeaways -
SAP demand story is strong as companies lean into AI transformation but @ChrstnKlein is frustrated by Europe’s regulate first approach.

Europe’s AI winner Nokia has a triple digit increase in AI customers in Q3, @justinhotard says IP and optical used in AI data centres will grow even faster next year.

Barclays - AI means 5000 job losses. Tech issuance is one of the forces Venkat is watching along with debt to gdp and underlying inflation.

Roche accuses Germany of creating government jobs but doing nothing to support industries like pharma.

Yara was reluctant to say the world is facing a food crisis as diesel, fertiliser and weather wreck havoc but is worried about the food supply chain.

Aesthetics like biostimulatory injectable Sculptra are being used to counter GLP1 face sagging and continue to plump up earnings for Galderma.

Kuehne + Nagel - no inventory gaps/bare shelves over the holiday season 🌲 because of shipping disruptions.

[Karen Tso @cnbcKaren]

Today’s show was a💡 moment on how broken European autos are.

Volvo Cars stock tanked as it revealed a 50% slump in China sales. Remember this is a European company with an actual China strategy/tie-up with Geely.

Simply having lower costs and manufacturing in China with the allure of a European badge is dead.

@volvocars CEO Hakan Samuelsson told me Chinese buyers want local software, infotainment and autopilot.

Europe was listening and learning from China on EVs to play catch up. China keeps accelerating away. Europe’s digital platforms have been too slow to develop for years and now customers care.

A looming issue - Europe will ramp up competition against itself flooding the European market with over 300 new models in coming years.

Can European car makers steer through the crisis?
https://t.co/97fajxpkTg