Transcripts For BLOOMBERG Countdown 20240622

Anna welcome to countdown everybody. First, we are going to hear from Credit Suisse. Were going to hear from roche. Mark it is a big day from roche as they report earnings. Anna we will speak to caroline about how the business is reporting. Anna sales rose 6 at a constant foreignexchange rate. We are confirming the for your outlook. Mark absolutely. We are waiting on the net income. Missing estimates come at 7. 22. We were looking at 7. 38. That is core eps. It is a really interesting day for roche. In terms of the sales forecast. This is a company that, over the last year, has really trailed the pharmaceutical sector. Anna comparatively, to the rest of the pharmaceutical sector. Mark 7 versus 32 . Anna 9. 2 4 billion, and ahead of the estimate. It seems to be a mixed bag when comparing sales and those estimates. The foreignexchange eroded. That is a very important conversation to have. Also it is interesting to talk about how they will keep a lid on their costs in the second half. They have a lot of new investments coming in. We also have to discuss the competition from pegasus. We are watching for comments on the experiment of the protection on some of their drugs as well. Mark the reported earnings. Francine joins us now. He will be speaking with him later this morning. Once at the top what is at the top of your list of questions to ask him . Francine this is a new day. He has been in charge for 20 days. Analysts have been led to believe that he has a new strategy. He was rashly appointed. He managed to double the share price in less than eight years. What we will try to get from in is his strategy. Whether he will answer that, i am not sure. If you look at the breakdown of the earnings, it is clear that something will have to happen on the invest in Investment Banking side. However, Investment Banking revenue is pretty much the same game. It was said by a weaker fixed income. This is a problem that ups addressed a year ago. Ubs is much smaller. Any clue on how aggressive he will be with his Strategic Review that is meant to happen in october or november is great to get from him. Anna he is that any job for 20 days than. How much do we know about what he wants to do with the business . Francine i think he will be quite cool and tell us about his strategy. He already sent a memo out. This is a person that wants to lead and make sure everyone knows he is in charge. He wants to rally the troops. In his first memo he said he will be ruthlessly selective on where the Bank Allocates resources. He said the Management Team and i will have to evaluate how best to evolve the bank. That brings up a lot of questions. There has been a lot of speculations on whether they will be much more aggressive in asia. As a co prudential he was very strong on whether or not he would focus on private wealth and what people do with his Investment Bank. Mark francine, thank you very much. We will be waiting for your reports from zurich. We will be hearing from francine throughout the morning. Well bring you that at 7 45 this morning. That is 8 45 Central European time. Anna more banks have come out with various commodities. Let us see how that is playing out across asia overnight. David is standing by in hong kong. What have you got . Davi d a good morning to you in london. I will summarize what is happening here in asia. It is fairly mixed. There is no one common theme happening throughout the region. What is happening though, is, if you notice these markets and bread. These markets like a thriller and new week new zealand a lot of these guys are fairly Resource Energy exposed. It is waiting on equity prices. South korea is also one of them i will get to that in a moment. It is tipping the scales down. What is happening elsewhere, you have a lot of these Japanese Companies coming out with good earnings. The case with taiwan is a big difference. We have fairly disappointment earnings from wall street on wednesday. Japan, by the way just mentioned it is up with this trade numbers for june. There was a surprise deficit. We are back in the deficit here. For the japanese economy, as you guys mentioned. I will get to that in a moment. South korea came out with their gdp numbers. They were very sluggish with almost no growth. It may actually be as the move into the second half the government has mark some extra budgets to spend their way out of the sluggish area. It is a fairly good example of what is happening across the asian equity space. Just about every spot here with the exception of the sectors that are exposed to resources and commodities. Down 2 . Industrialists, let me message in this as well. South korean authorities the financial regulatory put out stricter rules when it comes to credit applications will stop these come into play next year. Gdp data came out earlier. That is something to watch. Very quickly, we are still down 24 over the past month. How much more do we have to go . Back to you. Anna thank you very much. Mark coming up after the break one of the Global Leaders in 3d software will be talking to the cfo. The Company Shares were up by 50 . Another bonus came up for them this morning. That is right after the break. Ryan welcome back. It is sick, and 6 1 to in london. Anna ben is standing by and waiting to discuss those numbers. It is a pleasure, as always, to have you on the program. Lets start with your sales numbers. What gives you the confidence to update to upgrade your guidance right now. Guest as we are publishing the result this morning we understand the asia market is growing. We are growing 20 there. I think, at this time, the possibility to create a digital experience of the real world in many sectors is really a reality. I think, we stand to make a good amount in the United States. 20 in america. It is sustainable and europe at 12 . That system is going well. Ryan sir, your sales have grown for five years in a row. What is it about the 3d Software Space that has allowed it to outperform other sectors within the Software Industry . Since the growth has been so great, do you think it can continue at the same pace . Guest the use of a 3d is becoming more visible because of the consumer use. The medium is. The medium is used as a way to evaluate, design, and produce goods. These capabilities are creating new deans for clients and new possibilities for clients. I think we are seeing the tip of the iceberg for the medium. The system is experimenting. We have announced in singapore the Prime Minister announced that the system will be used to optimize the city. They will even use a smart object within the city. When you want to do printing you do need 3d. It is very core. In the example of the city, we believe cities are going to go up. There will be many system and Waste Management and Energy Management systems that will use the system of 3d. Our design is creating a new definition of what is required to do the experimentation. Anna lets bring together a number of the things you have mentioned. You said the business is doing well. You said you are doing work and cities and the asian business is doing well. Are you concerned about a slowdown in china . Does the secular trend have to do with any weakness or slow down . Guest things in china have been going very well for us. We have a great opportunity to grow there. It is clear china is holding up space with infrastructure. We have significant new things done first in china, like Digital Construction for highway tunnels. As i said cities. I think, in china we have two things. Improving existing cities and creating first of a kind urbanization of the old challenges. It will be required to use the kind of experience platform that we have two really develop their country. That is really the driver. We see that as a longterm system of growth for china. Ryan you have had 14 companies in the last year, if i am not mistaken. Is that the kind of deal that excites you, as you look to buy out more companies . Guest i think the software we have now has been there, but it is more visible. The things china is doing is a very different. The need for a new generation of software is there. The target you are talking about has already been replaced in the world. The needs are innovating progressively. That is what we called the digital twin of the world. I think this is the core business of the system. That is why these the evolution is a Natural Evolution. Energy production can be optimized with this. It is a Natural Evolution for the industry at large. Anna bernard thank you for joining us. Ryan here are the stories you need to know this morning. Anna 1. 0 5 billion as compared to the estimate of millions of francs. We will bring you our interview with him. That is at 7 45 uk time. The majority in the Greek Parliament. Finally, they had to call together and except the agreement to remain in the euro. They have to agree with the eu rules. The central bank trended down. The benchmark rate trends at 3 . The statement, the governor emitted previous references. In south korea, in the Second Quarter, the mers outbreak did not help in economy that was already struggling. Ryan the consumer good giant is reporting today. The focus will be on the emerging markets. Caroline is here to discuss those earnings. Thank you for joining us. A lot of people are talking about the potential slowdown in sales. Caroline it will not be a huge wall off. It is a slowdown, compared to last quarter. Some of that will be dictated by the fact that it came early. There is also this growing had been we are getting from the market. The themes are, slightly tepid for the Second Quarter. When you put 57 of their sales, in a now emergingmarket india, africa, china. Part of that, was doing very well. Africa and india remained solid. Would you see from brazil and china and russia, it has gone to a burden. China in the third and Fourth Quarter of last year contracted 30 in terms of sales. We managed to see some kind of stabilization in the First Quarter. What about the Second Quarter when we such when we saw such volatility . That company focuses on emerging markets. They seem to actually be upping their game. Be that is the point. You go big. July the 20th, they announced a new agreement with the giants in china. They tied up a strategic partnership. They want to see the booming Economic Trend in china. 43 is what is expected for this year. That is more than double what we are expecting globally. This is what they want to get out into the rural areas of china. They also want to focus on the data election. They want to get to the right place and tell their story in the right way. There is an o there is another interesting focus online. Only 1 of the sales come from the online sector. How are they going to grow that . I think the management is also quite and resting. They are headhunting for a new chairman. The cfo was seen as a very good pair of hands as he drove up prices. The cfo is replaced, come october. Why . This could be a tepid set of numbers. It does have a tepid feel to it. The story, right now. Anna thank you caroline. Ryan stay with bloomberg. We will be speaking to the ceo. We have an interview you definitely do not want to miss. Anna late last night, lawmakers in athens voted through the second package. There will be a new it he 3 billion euro bailout package. 83 billion euro bailout package. They need this to remain in the eurozone. He thinks the policies imposed are wrong, but says he will do everything he can to improve the final deal. The negotiation process does not and here. After the approval of this last package, according to the deal of three 12th of july we are applied obliged to continue to agree to the terms of the loan will stop the results of these negotiations will be crucial. I take it for granted that we should focus on the possibility of political and social alliances and europe that will help us achieve the best result. We have to improve the text of the final deal for the sake of the social majority. We hope to change, correct, and find achievements. Ryan we appear to have lost our sound. Anna if you could speak greek, you would get a lot more out of that. Ryan coming up, we have an interview with the cfo. They own more shopping malls in europe than anyone else. It is a very big a french company. It is an interview you want to listen to. Anna we will be talking about the mercedesbenz. We will see what they have to say about china. Bmw and audi lets not forget china has the number one car market. Lets see what there is to say about that. They are bringing out new models. We will see if there are any updates there. Ryan we will be joined by the head of Market Strategy. He will talk about commodities and talk about china. Anna look at his take on the big Foreign Exchange move and the new zealand dollar. Ryan it is 6 30 here in london 7 30 in brussels you are the stories you need to know. Anna graces secondquarter earnings have beaten incomes. The earnings are the first in his capacity as the ceo. We will bring you the conversation with him at 7 45 u. K. Time. Lawmakers have approved the second wave of measures demanded by creditors with a majority. Alexis tsipras called on greeks to pull together and accept sacrifices needed to stay in the euro. The reforms will simplify Court Decisions and impose eu rules on the failing banks. Growth in south korea has weighed on Consumer Spending in an economy already struggling. Gdp grew 3 10 of 1 from the previous quarter and 2. 2 from a year earlier, slightly below forecast. We are expecting any minute to get numbers. Ryan no numbers yet, but the focus is on how they are handling the slowdown in car sales in the transition when it comes to the kind of cars that the chinese want to buy that will be the big focus for the conversation, for the earnings report. Anna lets move on to property commercial property, a company that released its earnings for the first half of the year yesterday. Net income fell, although this years outlook was raised. Joining us now for an exclusive interview is the companies cfo. Also with us is ahead of Market Strategy who will be with us for the next hour peter thank you. Lets come to you first off. You raised your outlook what gives you the confidence. The Second Company is raising so what gives you the confidence to make that move . We have seen the underlying growth up by eight point 4 , and that has been stronger than we expected at the beginning of the year. Based on the results so far we are confident about our ability to continue growing. Ryan you have a big divestment program. Where are you with that right now. Jaap we sold last year 2. 4 billion with our Shopping Centers and this year we are looking to sell we have almost sold about 1. 4 billion. We are well on track to meet the goal we set. Obviously with the demand for property in the low Interest Rate environment, considering the quality property, we have seen very strong. Anna this is all about becoming more prime so how much of your business would you define as prime . Jaap 95 of the gross market value is in the Shopping Centers, which we use as a shorthand for the prime although there is more to go. Overtime, we will think that the investment weve made in our portfolio will demonstrate that retail is not just a property business where you sit and collect rent you have to invest in continuously improve. The models and london are a great example where we think that retail will be. Anna you arent in the u. K. And you dont want to be . Jaap it is very expensive. [laughter] ryan staking of expensive rental Income Growth is what you are after but what markets are using the highest growth and rent . Jaap this semester, we saw a lot of growth in spain. We saw clear, strong recovery coming through their. We saw central europe, the nordics. Ryan is that catching up when we talk about spain . Jaap very much so. The ability to raise rent was limited by 10 for year for us which is kind of low. Ryan i am glad you are to my landlord. [laughter] anna how difficult is it to attract retailers . On the one hand, youve got better data coming out. In terms of how the economies are performing. But on the other side, the greek crisis is dominating headlines. How eager are companies to take out new leases . Jaap the key elements to think about is the fact that retailers invest for a longer period of time. Whatever happens in the blips, they will have to make more fundamental decisions. We have the best malls in the world in cities throughout europe. Retailers, whether they are from asia or the u. S. , they continue to grow and they want to select the best locations. Anna jaap ryan you got permission to go ahead with the triangle in central paris. Is this clearing the way for more skyscrapers in paris . [laughter] jaap i think it will be decided on a oneoff basis casebycase. Ryan what is your sense . Is it a watershed moment . Jaap i think it is a watershed moment by virtue of the fact that there will be a new highrise for the first time in 40 years. I do not think it is going to be replicated. Anna so youre saying that your business is not a proxy for macros. How do you feel about the European Growth environment at the moment . Some of the data has been improving jaap i think the numbers are very positive. The efforts by the ecb seem to be affecting and working well despite the crisis in greece and jaap said it well. You are seeing rents go up in spain. Who wouldve thought of a year ago . It is amazing that the economy is taking off. We will see better retailers moving in tomorrow and that is an indicator for the recovery in the european economy. Ryan interesting that he is not in greece. Also interesting that young Yanis Varoufakis is voting yes. Jaap i think this shows that the greek situation has moved into the ridiculous at this point. It is so difficult to separate the truth of the matter. That vote really turned my head upside down. I just want to know what will happen next its pretty much random. Anna we have to break into the conversation to update you on whats happening at daimler. The secondquarter sales came in ahead of estimates at 37. 5 billion. They are talking about a significant rise in 2015 revenue. In terms of net profit ryan pretax profits are up coming in above expectations that just shy of 3. 8 billion. Analysts were a good half billion short of that. Anna this is a nice, long term jump of daimler pricing. Lets get back to the desk i wonder, weve been talking about greece, and clearly operate across the eurozone. Does it cause difficulties running a business with that kind of concern about whether the euro is going to live to fight many more days . I dont know whether that enters your boardroom consciousness. Is that something you keep to the side . Jaap we have to keep it to the side. These are things that we cannot control you can risk manage but you have to continue to generate return for shareholders. I think there is a big issue, like the departure of the eurozone and theres not something you can do. We are not a trading house. We have capital. It is invested in assets that you cant pick up and leave. You have to make the best of it. Based on what we are seeing we have done pretty well. This is the interesting thing also we cant look at our business as a proxy. If you look at our Shopping Centers we are up by 4. 2 . Through the end of may anna not a good picture, is it . Jaap not for us. Through the end of may, it was up several basis points we are gaining share. Even in a tough economic environment, we continue. Ryan is your sense that your clients, your tenants were weighed down by greek crisis by the lack of clarity as to how it is going to end . That they are now more confident, or no . Jaap it is easy to say europe is one big area. But this is a big split within countries germany is still the number one target for expansion by retailers. We have a nice presence there and we can continue to and if it to benefit. Not necessarily on a regional basis, but it can be very specific. Anna another theme we are setting in the middle of an m a boom right now across the business world, and i wonder your experience as a company when that deal was done eight years past that point, has your burger turned out to be everything you expect it . Has your merger turned out to be everything you expected . Jaap yes, and then some. I think this is one of those instances in which mergers provide significant value for shareholders. Lessons learned from it it takes a long time, and the one element that people tend to underestimate is the integration, the people side of the business, which is still one of the most important things. Its not something you want to take on in a saturday afternoon. Ryan peter, i wanted to ask you now that we have daimler, with the carmakers, european carmakers reporting, how bullish are you in general on European Companies and equities . Peter we are quite bullish. Draghi is obviously helped out exactly. I think that has added a lift to the european economy the fact that he is staying on track. Overall, i think all of that is going to trickle back in to earnings and European Companies it is probably the best place to be in the next six to eight months. Anna where do you see the euro heading . The focus is all of the different rate strategies peter we continue to see that as a positive and continued to see the euro being debased. We think that policy divergence will come back into focus, as many people mentioned. The focus will be on the fence policy which is in our view looking for lift off in september. We will see it lower. Anna we are at 109. 33 . Jaap we are Still Holding onto that call we think things will start moving quickly, especially in the fall when everyone returns. We move forward to the fact that yes, the move will be in september. Anna thank you very much. Thanks for joining us. We really appreciate it. Ryan peter will stay with us for another 45 minutes. Anna coming up as midyear earnings season accelerates, we take a look at why the european season is power and across the u. S. Ryan it is 6 46 here in london ; 46 in paris. Anna net income came in at 1. 0 5 billion swiss francs compared to estimates of 722. 4 million. It is the first in the capacity of ceo. We will bring you our interview with him at 7 45 u. K. Time. Greek lawmakers have approved the second wave of measures amended by creditors by a majority. Alexis tsipras called on greeks to pull together and accept the sacrifices needed to stay in the euro. It would impose eu rule on failing banks. Oil neared a bear market and minute a rally in commodities as an unexpected increase in crude stockpiles exacerbated. They expanded by 2. 4 7 Million Barrels, according to government data. Oil has lost almost 20 over the past six weeks. Ryan lets get more on all this with peter, the head of Market Strategy. Thank you for staying with us. This might be our only opportunity to talk about the kiwi. They are cutting Interest Rates. It jumped a little over 1 where do we go from here . Peter i think we will see one or two basis points cut by the end of the year. The overall sentiment in new zealand and australia are quite weak. The domestic dynamics are quite low. Spending on the consumer side is way down. We arent seeing exports from a regional standpoint. It is a crisis in the whole region. Most importantly, the commodity story is not developing the way australia and new zealand would like. Well the rbnz was slightly less hawkish we should see some basis points. Anna there is a chance that the kiwi dollar any banks we are seeing in the kiwi today are around expectations. Peter very much so. They were expecting significantly more dovish are rbnz. The overall sentiment is quite bullish on the domestic economy and there is a specific effort to push it lower. Any upside is going to be talked down by central bankers in order to get the kiwi weaker. Anna they have their own things, dont they . Can you put them together and talk about them as a whole . Peter i think so. I think Commodity Currencies and commodities have become extremely correlated. Each commodity has its own story. Oil may have the iran story goals may have the greek crisis Industrial Metals may have the slowing growth in the u. S. And china. All those have the uniqueness. But within a broad band the spectrum of the sector they are moving down very aggressively. We may get news that sends oil lower and pushes the whole complex lower. I think the same thing is happening with commodity. Ryan how deep do you see Commodity Prices, how deep of a decline . Peter i think the big stories are oil. We continue to see supply hitting the marketplace. The arabian story where they have 52 Million Barrels offshore ready to go the gold crisis with the u. S. Dollar continues to go higher, which means bad news for gold. Those are two Major Players within that commodity complex. The commodity story looks like it is going to continue to weekend. Anna how much of this is just a dollar story . The fed looks like it is on its way to increasing Interest Rate of the dollar goes higher, and the danger for the u. S. Economy, as we saw when we saw the falloff in oil prices, that wasnt as good for the u. S. Economy as many commentators thought. It could threaten that rate rise peter very much so. I think there are a few pieces in there one is the dollar story and one is the inflation story and the effect of oil prices pushing down Consumer Spending and pushing down inflation. I think overall the certain stories in the complex like gold, like the u. S. Dollar, or the bigger ones over Agro Products in the monsoon season being dry and india. There are Bigger Stores within the complex but i think the overall thing we are seeing is that Commodity Prices should continue to weaken. As you said earlier, we continue to see it getting stronger and stronger, the fed possibly backing off a rate hike, and that will give gold the ability to increase. However, i think the longer story is for the fed to be on the track of tightening, and that means bad news. Ryan where do you see the frank going . Peter the dynamics and switzerland have changed significantly with the resolution. The temporary reprieve. If you look at the underlying dynamics the strength of the swiss franc has really hurt this was economy. We are seeing export numbers come out, trade balances the consumer and retail spending is backing away from doing things domestically. The economy in switzerland is still suffering from the strength of the swiss franc. With greece sidelined for now, the swiss franc should continue to weekend, especially against the u. S. Dollar. I think it is one of the clearest trades in the fx market right now. They were obviously they arent looking for the swiss franc strength. On the other hand, across the atlantic in the u. S. , good numbers from the growth situation in the u. S. Next year in that story for fed tightening will continue in the dollarswiss will tread higher. Ryan we will bring in ted coulter. Ted we got a story about the euro and how everyone talks about how it hasnt suffered much. We have a story that says yes it has. What the story is arguing is that the damage has been done. You are starting to see it in the periphery, when you look at what is happening things like m a in spain have fallen off a cliff stop we had a separate story today about the push for cattle on independence. You can see how it spreads, integrate in the periphery. Certainly damage has been done. Anna do you think about the euro differently this year . Do you have to think about it as a breakable feast . Tim with the resolution, it is less likely. We will need eight to 12 months to start seeing the fact that the damage of what happened prior to the agreement is now taking effect again whether it is a lack of investment, lack of tax revenues, lack of reform. All those things are going to take a while to come to the forefront. I think we can step away from greece. What we are focusing on is the ecb quantitative easing program. From what would everything weve heard, despite the positives we are seeing, draghi will continue to move forward with the asset purchasing. In that case we dont have to worry so much about europe we know that next year, this is the direction they will go, and it allows us to focus more on asia, on the u. S. Anna that takes us nicely into your next story, tim, about how the u. S. Earnings seasons tim yes. A number of reasons to be optimistic about whats going on in europe. The euro is a big thing what is the lower rates. The other thing is that there is a little bit of growth. I think the forecasters say anything from a 6 12 increase in corporate profits in europe versus 1 for the s p 500. Ryan it is definitely a recurring theme here on countdown. Being bullish about european equities. You also have a story about how the u. K. Should have lower Interest Rates. Anna lower. Ryan which i totally agree with, by the way. [laughter] it is a very interesting profile of the chief economist of the bank of england. He is really the only outspoken person arguing against mark carney, saying that the next rate cut the next move in rates could be lower and not hire. Anna he is described as a freethinker, perhaps even a contrary in. A contrarian. Tim coulter with a look at some of the stories. Stay with us for a little bit longer on countdown. Ryan coming up next, Credit Suisse. We will catch up with the new man at the helm. That is about in about 45 minutes. Anna Credit Suisse beats the Second Quarter. 1. 5 billion. The banks new ceo says he will complete a Strategic Review by the end of the year. Ryan roy smith says the drug makers earnings are way down. Anna european earnings are in full swing. We have earnings from roche unilever and daimler. We will speak to a number of ceos throughout the morning. Ryan differences the greek Prime Minister moves closer to a greek bailout. He calls on greece to make tough choices to stay in the euro. Anna welcome back to countdown. I am anna edwards. Ryan i am run it im ryan chilcote. Anna Second Quarter underlying sales. Mary j pitch is standing by. Sales growth two point 9 in the Second Quarter. That beat the estimate of 2. 5 . We do not have the actual numbers yet. I can see the consensus estimates were 13. 8 billion euros for the Second Quarter. Remember, the Second Quarter sales beat expectations, pushing the share to a record. I can get the share price. You can see here that was the shares hitting a record as firstquarter results. Although the company says sales growth would continue. That is what we are waiting for today. The challenge for unilever is in the emerging markets. Slowing Consumer Spending and china and brazil turning what used to be a boom into a little bit of a problem for them. Secondquarter sales growth, 2. 9 beats that 2. 5 estimate. Back to you, anna. Anna we will be speaking to unilevers ceo later this morning. We will bring ryan you that interview as soon as we can. Ryan we are getting earnings from sab miller. Organic net desert rev up up 3. 8 . It looks like problems in europe. Anna Third Quarter europe organic net was down. It looks to be considerably weaker. The after number weaker. The africa number weaker. The north america is coming in flat. Ryan consistent with the theme latin america coming up short. It looks like the number is 6 . It looks like a mess for sab miller. Anna ive got some from the ceo. A challenging quarter and three european markets. That is what we identified from the overall numbers. They said the trading environment in europe remains difficult. In china, they are making progress on the strategy of nongrowth. An instinct picture coming through. An interesting picture coming through. Soft drinks were up 4 . Ryan interesting to see that a weakness in europe and china. Let us get back to peter rosenstreich. Thank you very much. What you make of sab miller . Peter i think Consumer Habits are changing. They are moving toward less how call consumption, more healthy living. Ryan that you say wine. [laughter] peter one quarter does not make a year. A slight pullback in some thing like this is probably more of a oneoff anything else. Anna interesting line on the currencies. They declined by 10 due to depreciation due to appreciation of currencies. Having an impact on the day today. Stay with us. We will be returning to put her. We should go back to Credit Suisse. Ryan they just repair their earnings. Francine joins us now. She just spoke. What is set to happen to the Investment Bank . Francine you give a sense of what could happen. He basically said he wants strategy by the end of the year. If you read what he said carefully. He said the strategy could rest some of the pressures up in our secondquarter results. When you look at the results there are three questions put you same happened to the Investment Banking echo when asked him, he said a lot of the strategy when you look at the pressures will only come from the Investment Bank, because capital intends. He always said he was consistent about the importance of this. Not down with that means. If you look at how the Investment Banks performs, they had higher performance, but they did have a week fixed income revenue. 40 to 45 . We are expecting him positively addressing that. Anna which region does he want to focus on to expand and climate banking or Asset Management . Where is the expansion . Francine this is where the main focuses. If you look at the strategy, you have the Investment Bank that if there are any acquisitions and where he wants to focus on. It seems if you look at the police, he is very look at the press release, he is focused on asiapacific. It is unavoidable. He told me this is. Execution is crucial. He wants to focus on execution to get more clients and asiapacific. Youre talking about symbiosis between the Investment Banking and Asset Management. You would have an entrepreneur that would have Private Banking but would use the Investment Bank services. That is what he is heading it. This is what he is hinting at. Ryan give us your best bet. You know thiam, do you think he will be aggressive when it comes to acquisitions. Francine if you ask me a month ago, i would say yes he wouldve been very aggressive, because he became ceo of prudential 90s ago. He was aggressive at that time. He said to be a new ceo you have to be bold. Today he said this is a business that needs to have everybody involved in it. He wants to grow organically first. He said that would not be his priority right now. It is a fluid approach at the moment, because he is still consulting with Board Members and a lot of team here. He has meetings next week. He is expecting this to be unveiled by the end of the year. I tried to figure out whether it would be october, november or the summer. He said it does not matter. Ryan francine lacqua, thank you very much. We will hear more from her throughout the morning. Lets bring in peter again. Peter, we hear about Credit Suisse. When you stand on European Banks as an investment . Peter we think theyre going to do quite well because of the Interest Rate situation. Later in 2016, it should start improvement. It gives him a chance to make money. Right now it is difficult. We will see a law for a while we will see a lull for a while. Druggie will have to remove some of this quantitative easing drugaghi will have to remove some of the quantitative easing for a while. Anna what is the big drive, isnt that . Or is it m a . Ryan increased opportunities. For the last few years, it has been subdued on where they could put their money. European banks that comfortable with stocks. As a consumer the situation in europe start improvement start improving, they will see more generally. It was dark flowing more freely. That will be very positive. Ryan they have been getting cheap credit. Peter i think that will change now. The opportunities are growing for the real estate market. With that, there should be some lending for arch ignores who are looking for arch ignores who are looking to expand their business. Ryan peter i do not think it will be my blonde. It will be mind blowing. I think a lot of it is pricing. I think it is a good time to be had for european equities. Banks are going to be leaders. Especially when they start improving. That will allow them to convert capital more aggressively. Anna peter, thank you very much. Head of Marketing Strategy at swiss quote. Ryan greek lawmakers, including jan of but a farkas, except creditors the mans. That may not mean smooth sailing yet. When does greece get weaned off emergency cash . We are live in frankfurt when we return. Ryan it is 7 14 in london. It is a 14 and frank for it. Your other stories you need to know. Anna Credit Suisses secondquarter earnings have beaten estimates. The earnings his capacity as ceo. We will bring you our interview with him at 7 45 u. K. Time. A 230 majority. Alexis tsipras greece to pull together and accept sacrifices needed to stay in the euro. Oil near bear markets after unexpected stockpile exhibitions excessive by the the price of oil has lost 20 over the past six weeks. Signs the global ryan greek banks got an additional lifeline from the ecb , more emergency cash. Paul is standing by in frankfurt. Should things go rather smoothly now . Paul im pretty sure everybody hopes they will. We heard the comments from the greek Prime Minister. The reforms that greece has passed will be implement it in the interest of staying in the euro. The ecb will be headed down to athens as part of the troika to start monitoring the implementation of those reforms. If things go smoothly, that will allow the ecb to ease up on the banks. The aim is going to get the banks off of emergency liquidity and back onto ecb refinancing lines which are cheaper. The ecb needs to be sure they are going to get their money back. A survey suggests that could happen by the end of the year before that you may get an easing up on the collateral haircuts. Greece has to implement the reforms for any of that to happen. Anna how long might it be before greek banks can be weaned off liquidity . Pal exactly. Palko exactpaul exactly. They have been Monitoring Progress closely. You might argue a sense of importance that greece does get back onto normal refinancing lines. Get towards Capital Markets again. The reason greece could greece got easier terms on its haircut was because it was going back to Capital Markets. That is completely off the cards. That is going to be the next that, get the banks recapitalize. Yet the funds into greece. Try to get Market Access again. Ryan thank you, paul gordon. Let us bring in peter rosenstreich. We do not talk about china. We spent a lot of time talking about china here at this desk with the collapse of equities there. One of the worst performances in the past month. The 93 indices that bloomberg tracks. Is this going to be a systemic model . Peter i do not think so. People are starting to forecast that this is a reflection in chinas growth. We do not think so. The overvaluation, that this is going to be a trigger. I think what we are seeing is more of a localized structural issue, where the changes of the rules the lack of other investments for small investors the use of the ipo market as a vehicle for m a activity also created this fluctuation and Chinese Market. These are localized issues. If you look longerterm, china is relatively healthy when it comes to equity markets. Loan ratio is good. Lending rates are low. Growth is around 7 . It is stable. All the while, the growth within the Chinese Consumer continues to improve. We will see a strong recovery from the shanghai composite. Anna that is interesting. Do you think that the chinese equity market is a reflection of the peter it was more of a structural issue. The chinese imagination got caught up into this very limited amount of investment that provided to chinese citizens. This was an opportunity for them to get involved with investment and they threw themselves in wholeheartedly. I do not think it is a reflection of the chinese economy. China will continue to improve. Ryan dr. Oz about russia, him talk to us about russia. A lot of people in moscow saying we are going to be out of this recession before you know it. Then oil dropped. Peter the russian Investment Community always tends to be relatively short. They default and then a six was later the bonds in the market return. I think it is going to take a little bit longer because of the oil story. We do have very negative bias on oil. That is going to play into russia specifically. Number two, there are other commodities that russia also exports. It is not just the oil story but the whole commodity complex. At the same time, the sigil bank is fighting a steep desk the central bank is fighting a steep inflation rate. It is squeezing the consumer. Anna it sing in that context. Thats interesting in that context. The u. K. Retailer and a french retailer, but they say russia sales a more know a more normalized. Peter it is a small piece and a much larger puzzle. Clearly the consumer is squeezed. It can be very difficult for Discretionary Spending to rebound anytime soon in russia. We going to see a contraction in this quarter, and probably next quarter as well. I think things are not as bright as people expect. Ryan you mentioned commodities. You forecast it will go need 1000. You escaped a forecast for brent. Which is around 65 a barrel now. Peter i think it is going to be lower. At baseline around 50. Ryan that will be apocalyptic. Peter i think they would squirm significant. There is a growing than amick panisse to be studied between saudi arabia and iran. Saudi arabia has a vested interest. To make sure that revenue to iran arent as strong as they could be. If iran starts to benefit from 100 barrels of oil it becomes a very murky situation. Clearly, i am not a geopolitical expert. I am pretty sure iran does not want that type of revenue. I am pretty sure that saudi does not want that type of revenue to go to iran. I think it is an their interest that saudi host down oil prices more down more now than ever. Ryan last week we were told that United States will be better friends with iran than saudi arabia. Peter i am not sure about that. Anna bringing commodities back to russia has the failure of the russian economy diversified has that surprise you . Peter i dont think the International Investment Committee Really defines investment strategies. I think russia was a very strong manufacture and commodity play. That is how the investors wanted it. Im not sure they wanted to does a for to diversify the economy. They did not get these assets. It is going to take a longer term for investors to go back into russia when they are allowed to. Ryan peter rosenstreich, thank you for your time. Appreciate it. Anna ; 24 here in london. In terms of where the equity markets are going to open up. In terms of features, weve got a start to the european session. Your stocks euro stoxx 50 appeared to be in a positive territory. Ryan ftse 100 looks like it is going to open up at. 7 . And of the picture for europe. An upbeat picture for europe. Anna daimler the mercedes car sales growing. Lets put this in context and talk about where these european markets are headed. I am looking at the european stock futures here. They are pointing higher, indicating we might be seeing gains. This would come after todays of losses, for the stock 600 which snapped a nineday rally. The longest rally since april 2014. In terms of what might be driving that sentiment and micro terms, the Greek Parliament approved those measures that are needed for greece to get its bailout. The Athens Stock Exchange still close at the moment. We heard that it might open today. The dilemma facing greece is putting restrictions on trading . Or do they invest as or do they exempt investors . The risk is that you can see more capital strike from the country. In the meantime, let me update you on some of the stocks that might move at the open. Credit suisse Second Quarter net income beat estimates, even though profits failed. We might see that move higher. Unilever, secondquarter sales growth me self sales growth beat estimates. Sales growth even accelerated from the First Quarter when the stock hit a record at that point. We might see those two stocks move. Anna thank you very much now drug. Ryan we have the ceo of roche the worlds biggest maker of cancer drugs. He will join us. Ryan it is 7 30 a. M. Here in london. It is a 30 in frank for. Anna Credit Suisse is Second Quarter earnings have beat estimates. The earnings are the first four tidjane thiam. Prime minister Alexis Tsipras greece to put together and except the sacrifices needed to stay in the euro. The reforms will supply decisions and oppose and impose eu rules on the banks. A rousing commodity as an unexpected increase in stockpile. Industries expanded last week. That is according to desk the price of oil has lost 10 in the last six weeks with signs that the global ryan wrote just reported roche just reported secondquarter earnings this morning. Joining us now is the ceo of roche. Thank you for joining us from basel. First off, on your results, a bit of a mixed bag, yes . I am very pleased. We had a strong start. Both from a commercial and also from a pipeline to view. Sales up by 6 . Sales up 7 . The highlight from my perspective the strong uptake [indiscernible] we took over from acquisition last year. Very good to say. The progress in our pipeline in immunotherapy. [indiscernible] very importantly in multiple sclerosis. It went very well in the First Six Months. Anna those of the positives. Congratulations on those. The currency. Do you want the central bank to do more . You focus very much on the things you can control. Do you want the central bank to do more . To try and help . Severin i should say that the impact is limited. We have 1 of our sales in the swiss franc spirit this franks. Most of our financing cost is it in u. S. Dollars. It is hedged we have in the euro area. We are not so much impacted by the s p decision. Anna our Bloomberg Intelligence has a question for you. Just a question this morning yesterday there were some comments about where that might exit be the case. Could you clarify that. Severin we have two compounds. We have one which is different. It has a very good safety profile for that compound. It is encouraging in early studies. We made a decision to move this cop forward into pivotal trials. [indiscernible] the decision is not yet taken. We are analyzing our internal data. Were looking at external data. We are casting the data with the regular authorities. Given the early signals that we see, it might be justified to take the risk and move it forward. The decision is not yet taken. Sam if we could stay with alzheimers, you have another drug. You said you are prepared to start advanced trials. How soon after he you start the trials, might you get results . If you look in your crystal ball, how long will we have to wait before it gets approved . Severin this will take several years. The reason a disease like alzheimers, you need include you need to include relatively large number of patients in the trial. You have to observe the progression of the disease over a long. Of time over a long period of time. It would take a couple of years until we will have the data and the base for filing the medicine. Ryan one more question. Based on bloomberg estimates you beat by 40 in terms of sales, which must be gratifying given the questions you are asked. A quick question, how much of that is patient driven . Is there a lot of stocking leading to that . Severin this is driven by demand. This is the first treatment for a terrible disease. We do see higher than expected penetration at this point of time. Receive very good market shares developments. It is driven by patient demand. Anna the me ask you something different. The situation around greece. We talked about the geopolitics on bloomberg. Is somebody doing business there . Are you still being catered in greece . Doesnt the market have special characteristics . Is it behaving very much like the rest of europe . Severin our priority is to ensure supply for our lifesaving medicines to patients in the country. The situation is difficult, but it has been difficult for the last year. In spite of that, since the 11 desha sensed since 2011, accounts receivable have gone up to 100 90 million. This increase is manageable. We need to watch the situation carefully. Its clear from my point of view , that the situation will only remain sustainable in the longerterm. If resources are allocated to health care. Sam we jumping from business to business, in terms of Diabetes Care, it had a positive first half. They are decided to sell his business. Youre not looking at divesting it, is in the positive direction is it the positive direction something we should look forward to in terms of pricing . Clearly the other divisions are doing well. Could you comment on that please . Severin we have seen quite some pressure around the world. From a timing point of view, we saw it first in europe. We saw a negative development about two years ago. I found a new equilibrium and growing in europe and the international markets. The situation is different in the United States when the price decreases have been more recent. We have seen declines as a result of that. My personal view is that we will reach a new equilibrium and the United States as well. We will see declines over time. Overall, i remain optimistic for this business. The underlying demand for better management of Diabetes Care is very strong. As soon as we go through those price decreases in the United States, we should return to better growth for the business overall. Ryan ryan again, i know we are jumped around. I want to ask you uprising in the United States. We read about a deal with novartis leslie. Saying pricing is going to come under pressure with the consolidation of the Health Insurance industry. Is that something you agree with . Severin talking for roche specifically we have not seen much of an impact. I think at the end of the day it all depends on how much value do you provide for patients with your specific medicines. That is what counts. If you are truly differentiated comic if you prolong , if you prolong life the society will continue to buy into this situation. I believe as long as you deliver innovation we will remain in the strong negotiation position as it comes to premium prices. Anna does that apply to the boost of share prices as well . The stock has gained 3. 5 as well. That to behind some of the other pharma peers. What can you do to light the fire underneath the stock . Severin i have no doubt that the longterm success of our company depends on our ability to constantly rejuvenate our portfolio, to drive innovation to improve care. That is what we are focusing on. That will eventually drive the stock price. In this respect, the First Six Months of this year have been fantastic. We have made big advances in cancer immunotherapy. There is a real revolution ongoing in the improvement of cancer care. The positive phase through results phase three results. I very much look forward to presenting the details of the results of this important compound in october. Ryan thank you very much for your time. Anna lets director of research sam. Anything struck you as fascinating in that conversation you go anything catching your eye . Sam thing i like to say is we would we should forget about it all looks great. What we want to see is sales. They have done that on most of the pipelines. So, i am not bothered at all, it looks like some tax down the line. What i was hoping to desert without talking to here, he talked about it is revolutionary among several other companies and products are lung cancer. We are waiting for the company to tell us when they are going to file that with the fda. They are in discussions. They said look our targets is 2016 our target is 2016. Everyone is waiting to see if they will get it right. I read through the statement. As got preview therapy designation. It should be up to file soon. Anna the conversations around alzheimers at the moment. Which roche is a part. ; there are two at sam there are two antibodies. Roche, Eli Lilly Anna we need to make sure that we bring Credit Suisses earnings. Have beaten estimates. Francine lacqua caught up with the new ceo tidjane thiam. Francine the what is the main take away . Tidjane we have been driven by asiapacific. [indiscernible] they were very pleased with the things thats with the way things were developing. 125 in asia. 15. 4 billion. 4. 2 of assets. A very strong quarter. If you think about Credit Suisse, we are one of the premier brands in the world. [indiscernible] it is a foundation for our future and what we want to do. Investment banking has been under pressure. The equitys performance is really pleasing. [indiscernible] francine are you disappointed with the fixed income revenue . Tidjane it has a very similar shape of results. [indiscernible] if you look at what is happening in the Second Quarter with greece and china. That has an impact on the level of activity. It is quite activity driven. Most important is capital and leverage. [indiscernible] we took down by 11 . We see 75 billion. We are on a good trajectory to reach our target. Francine everybody wants to know about your strategy. Which be unveiled later. Tidjane our strategy. It will not just be mine. Francine the pressure is apparent in the Second Quarter. This clearly is Investment Banking. Tidjane mostly. What i think about pressure is you see the cost income ratio going up. That is a pressure. Ive always been very consistent about the Impact Capital location. That is one of the most important things we do. [indiscernible] the a strategic action which is what is the balance between the two indices [indiscernible] which is not to say that investment thinking is not important. We want this thing to be aligned with this private bank. Something you see in asia working externally well. Because we have clients for whom we are the main corporate bank. We want to be the odds yours bank. We want to be the doors bank entrepreneursbank. We will focus on the activities where the return is constantly in excess. [indiscernible] value creation. Francine the focus would be asiapacific . Tidjane emerging economies in general. 70 of the world creation. Foreign strategy but it would be hard to avoid. [indiscernible] ryan that is a fascinating view. Where joined by kevin. He looks after the equity fund. He oversees 30 billion the dollars worth of that he oversees 30 billion worth of assets. What you make of Credit Suisse this morning . Kevin it is a company im looking at this morning as investment. There is a good pedigree there. It is a company that has not been run well in the last few years. There is hope that they will deemphasize the Investment Bank and put more focus on the we are waiting at the moment for a Clear Strategy to come through and whether they need to raise capital to bolster their balance sheet. Anna views of is there room for that model . Do think there is more room for that model and Swiss Banking . They would not be the only bank trying to emphasize Wealth Management . Kevin Wealth Management is a better return on business. That is why ubs has done very well over the last two years. It changed its model. It began to emphasize Private Banking and emphasize the Investment Banking. Ryan you are very bullish on European Bank equities could how far can ago . And which ones do you like . Kevin these companies have gone through their capital issues. Credit suisse may need to raise a little bit. They repair their balance sheets. Weve got greater clarity on the numbers. They are trading on low multiples. The european economy is starting to recover. Bank lending is enough. These are the rest these are the best ways for economic recovery in europe. Anna daimler are you instant are you interested . Lets talk about Chinese Markets. The chinese car market is growing significantly. Is this an area you want to tap into . Kevin not at the moment. Anna why is that then . Kevin it is mainly china. German carmakers have been have done well outperforming others. They have a very strong presence in china. There are concerns that the Chinese Market is slowing down. Anna so now you want to tap into the European Growth story . Kevin that is right. We think its got a new model profile coming through that it started last year. They have they are launching a lowcost vehicle in india called the credit. That is just called the land. Ryan what do you think about roche . Kevin i really like roche. Ryan the performance has been week 3. 5 over the last year. Kevin we think we have attractive valuation. It has been hampered by the swiss franc. Novartis is reporting in u. S. Dollars. Its got a fantastically strong cancer franchise. We are accepting good news to come up from there. The mention of the conference coming up in september. The company is a biotech company. This Company Bought genentech in the late to thousands. It consolidated about 100 billion at the time. This is an 2009. This is in 2009. The biotech market it market has exploded and has gone up significantly over the past year. Anna its a trade more like a biotech. It should trade more like a biotech. Growth in latin america should be the key, not the china business. Kevin i like unilever. The problem is the violation. Its all it saw 23 times by uh and its all 23 times valuation. Anna kevin ryan thank you for your time. Anna stay with bloomberg. We will be speaking with the unilever ceo. We will bring you the headlines from that interview as soon as possible. 7 55. Jonathan good morning and welcome to on the move. I am jonathan ferro. Moments away from the start of european trading. Lets get to your morning brief. Credit suisse smashes estimates. Comes in over one billion swiss franc. We speak we speak to the ceo. The Prime Minister manages to getrecent moves closer to a bailout. Another rate cut. New zealand cuts rates for the second time in six weeks. Further easing seems likely. The kiwi is not the obvious. I will break it down for you. Coming up, and dont a whole almost of earnings. Including unilever. I will bring you the interview with paul taubman. Seconds away from the open. Stacks futures pushing higher. A by 100 points. Nejra lets see how the markets opening here in europe. After two days of decline. Waiting for the stoxx 600. Futures reporting higher. Stock markets opening higher. Rebounding from its losses yesterday. The absence Stock Exchange still close. The Greek Parliament approved the package of measures needed for greece is new bailout for greece pass new bailout. Today we buy see the Stock Exchange open. Do they