Squash competition. All Companies Report today. An earnings onslaught in europe with results from big banks and oil. Standardto the ceos of charter, Credit Suisse, and shell. Welcome to daybreak europe. Lets get to that earnings onslaught. Credit suisse numbers broke a few minutes ago. Credit suisse is to create a Global Investment bank. We were reporting that Credit Suisse was planning to announce a Major Overhaul of the business. We learned that its creating a Global Investment bank, combining the chief risk and Compliance Officer roles as well. In terms of the numbers, net revenue beat the highest analyst estimate. Net income also beat the highest estimate. The provision for loan losses coming in at 296 million swiss francs. The estimate was 443. 9 million. Lower than what analysts were expecting. The common equity tier one ratio coming in better than expected, 12. 5 . The estimate was 11. 6. In terms of the Second Quarter net income number, it beat the height estimate. The estimate was 713 million. Those are the main headlines coming through from Credit Suisse. We will speak to the Credit Suisse ceo. Dont miss that conversation at 7 00 a. M. London time. Standard charter. Onfit topping estimates lower loanloss provisions. Weve seen the shares basically extending gains to trade 3. 6 higher in hong kong right now, off the back of those results. Standard charter saying that the liquid season hong kong and china are close to the precovid level. They see impairment in the second half lower than the first half. Also hoping to reinstate the dividend as soon as possible, like other u. K. Based lenders. They agreed with regulators to suspend dividends and buybacks. In terms of other headlines that are key here, Standard Charter saying it will take longer to achieve the 10 return on tangible equity. Its those lower loanloss provisions that are the key headline. Profit has topped estimates. We will speak exclusively to the tendered Standard Charter ceo. Thats coming up shortly. Other numbers. Ebit,quarter adjusted down. 34. 1 . The estimate was a drop of 36. 4 . Not as big a drop is expected. As expected. Second quarter organic revenue down 17. 7 . Estimate was a drop of 22 . Goodwillllion noncash impairment. Those are a few of the numbers coming through from ab inbev right now. Secondquarter revenue beats. A lot more earnings to come through this hour. Lets get to the markets. Weve seen in asia, the gains extending from what we saw in the u. S. Session yesterday following that dovish commitment from the fed. In terms of how futures are positioned, u. S. Futures taking a turn lower. European futures edge into positive territory. The five year yield yesterday hit a record low several times before and after powell spoke. It has continued to decline today. The 10 year yield, absolutely steady on a 57 handle. A little bit of curve steepening following his conference as well. The dollar extending losses. A drop in the dollar in yesterdays session. Right now, the bloomberg dollar index is studying up. Studying up. Now to get to that decision. Jerome powell kept his message as dovish as possible. They left rates near zero. They will stay that way. He said signs of a coronavirus resurgence are weighing on activity. He urged congress to boost fiscal spending to offset the bigger shocks to the u. S. Economy. Remain committed to using our tools to do what we can and for as long as it takes to provide some relief instability, to ensure that the recovery will be a strong as possible, and to limit lasting damage to the economy. The path of the economy will depend, to a high extent, on the course of the virus and the measures we take to keep it in check. The data is pointing to a slowing in the pace of the recovery. How largearly to say that is and how sustained it will be. The rising joblessness has been especially severe for lower wage workers, women, and africanamericans. The fiscal policy actions that have been taken thus far have made a difference to families, businesses, and communities across the country. It will take continued support from monetary and fiscal policy to achieve that. The fed has been taking broad actions to more directly support the flow of credit in the economy for households, businesses large and small, and local governments. These are lending powers, not spending powers. Theres great uncertainty around the development of therapeutics and vaccines. All of us want them to happen as soon as possible. We cant plan on that. We have to hope for the worst hope for the best and plan for the worst, i guess it goes. On capitol hill, another round of talks between the Trump Administration and democrats brought them no closer to a compromise on a virus relief plan. The enhanced Unemployment Insurance runs out. Joining us now is Jim Mccormick. Great to have you with us. Thank you for joining. Lets talk about the bond market reaction. That five year yield dropping to a record low, reflecting Market Expectations that we will see rates close to zero for a prolonged time. The curve steepening was interesting, suggesting that some have been hedging the risk of an announcement that the fed would shift bond buying to a more stimulative approach. Emphasized younger maturities. Is the curve steepening that we saw in reaction to yesterdays announcement done . Jim no. I think the curve is looking superflat. Lets be honest. It was not the most interesting fed meeting ever. There was some into the pacing anticipation that they might buy at the longer end. The real message is that Monetary Policy is on autopilot at they really very easy levels. Its interesting that we are 24 hours away from the federal benefits for unemployment expiring. The democrats and republicans are still quite far from a deal. Nejra its interesting. Scott minerd from guggenheim spoke to bloomberg tv following the announcement. He talked about the fact that we could see negative rates in the u. S. Stimulus, heon the says if congress cant resolve its differences by next week, equity markets could begin to have severe problems. Do you agree . Jim i do think that its a risk. The market may not be paying enough attention. Its amazing that the equity market rallied on small that announcements of extension of policies. Fiscal policy is a big risk. Our view is that they will come to a deal. It will be lastminute. The key takeaway is that fiscal fatigue is setting and in washington. We dont think the fed is going toward negative rates. It will be a debate. Nejra in your latest schematic review, you talk about an unstable equilibrium and markets. You have a thesis on the weaker dollar. A surged the question, in gold price and rising inflation breakevens, what does it say about core bond yield . It has been steady for a while. What is your answer to that question . That its a remarkable thing. We hit an alltime low in u. S. Dollar rates. We are clearly near an alltime low in dollar yields. I think theres lots of arguments for that. What the dollar, precious metals, and breakevens are telling us, its not all goldilocks. There is an investor concern around the value of money. Re is some inflation rate risk building. Ultimately, that will have to be felt in higher yields. It doesnt have to happen overnight. I do think the bond market is probably a little bit too complacent right now. Nejra the current flavor of dollar weakness suggests the time of falling implied volatility may be coming to an end. We will pick up on these themes. Lets get to the first word news with laura wright in london. Laura the u. S. Death toll from the coronavirus has topped 150,000, the highest tally in the world. Texas, florida, and california reported record daily fatalities. Anthony fauci warned eye protection may be needed. If you have goggles or a face shield, you should use it. During congressional testimony yesterday, Mark Zuckerberg broke ranks. He was speaking alongside the bosses about the bet, amazon, and apple. He said facebook lags behind its competitors, calling out google and amazon. Samsung is seeing a recovery in demand, giving a cautiously optimistic outlook. It protects new smartphones and gaming consoles will boost demand in the second half of the year. The Company Posted betterthanexpected profit for the quarter at around 4. 6 billion. Global news, 24 hours a day, on air and on Bloomberg Quicktake , powered by more than 2700 journalists and analysts in more than 120 countries. Nejra thank you. Coming up, Standard Chartered delivers earnings that topped estimates. We speak to the ceo, next. This is bloomberg. Nejra this is bloomberg daybreak europe. Standard chartered has topped estimates with adjusted profit for the first half of the year of almost 2 billion. They set aside less money than expected. They plan a new round of job cuts. Sources telling us it could see hundreds of positions eliminated. With struggles in hong kong, the banks growth trajectory is uncertain. Joining us now is the ceo of Standard Chartered. Delighted to have you with us. Thank you for giving us some of your time today. The lower about loanloss provisions. When it comes to impairments, you say that you see them as lower in the second half in the first half. Would you say that the worst is behind you . Bill good morning. If Economic Conditions dont deteriorate and if the efficacy of the various government is maintainedms to some degree, we would expect that loan losses could be lower in the second half of the year. Theres a lot of but in their. It would be premature at this point. We see economic stress is continuing to be very present, in particular in the markets where we have our biggest operations. In greater china, in north asia. Were the first into the pandemic and the first out in terms of recovery. The recovery has been strong. Economic activity is still subdued. Kong, a third wave of the pandemic. It has been the most severe. The economic pressure is coming from that and will linger for some time. Too early to call the end of the pandemic. Standard chartereds Balance Sheet is in good shape. We to have taken prudent provisions. We think that that should hold us in good stead through the expected course of the economic recovery. Nejra yeah. The fact that you talk about economic stresses continuing to be present. To said, it could be longer achieve your 10 return on tangible equity target. What does that mean for cost cuts . You are planning several hundred job cuts worldwide. Our significant job cuts on the cards . Bill what we said earlier the pandemic was that we would make no redundancies as a result of the pandemic. We have not. We said that we would resume the ongoing transformation of our bank, which has been going on for years. Processes,omating digitizing everything from end to end, repositioning the way our branches operate to be more consultation centers. More and more is happening online. We put those transformation efforts on hold during the most acute phase of the pandemic. As markets are beginning to point, we will continue with our transformation. The most important thing for us is to give every single one of our employees a chance to thrive inside Standard Chartered and not have them forced to leave. The best way to do that is to focus on reskilling. We have made massive investments for our employees so they have the best possible chance of being redeployed within the organization. Inevitably, some people will choose to leave or we wont be able to find the right job for some people. We are talking about a small number of people in the context of our 100,000 fulltime workers at Standard Chartered. We will continue to transform our business. Nobody will miss a paycheck. Does come at the end of our process, leave, they will be pitiful salary for the entirety of 2020. Thats only the right thing to do in an environment like him. This one. Nejra you said theres a possibility that a small number of roles might go. Does that mean that there will or wont be several hundred job cuts . Bill as i said, we will continue to transform our business. There may be redundancies as part of that. It will be small. Nejra makes sense. You also said that Standard Chartered hopes to reinstate the dividend as soon as possible. Should shareholders expect a resumption of dividends and buybacks before next year . All, that isf something we will be consulting on with our regulators. Theyve said that they will only consider this in the Fourth Quarter of this year. Our approach to returning capital to shareholders has always been, make sure we have a strong, healthy Balance Sheet. Im happy with this quarters results. 14. 2 . Rted this is a very Strong Capital number. It leaves us confident that we got the right capital base to whether whatever comes ahead, in terms of the economic related stresses. Second is, weve maintained a very healthy investment program. Our First Priority is to invest in growth area we operate in growth markets. They are recovering. We want to make sure we are prepared to capture that. We would like to restore the dividend at the appropriate time. We will do that in consultation with our regulators. To the extent that we have a surplus, we will look at other ways to return capital to shareholders, as we were doing before the beginning of the pandemic when we had an active stock buyback program. We are operating in a capital range now. This is our target capital range. Thats appropriate, given the environment. We will lookzes, for ways to continue to flow that capital. Nejra you were also talking about the challenges in a big market view, which is hong kong, in terms of economic challenges. I want to ask you about china security law. One of your largest shareholders said it was an easy about Standard Chartereds decision to endorse chinas security law. Have other investors expressed concern with that decision . Bill what we said was that we were hopeful that the National Security law in china could help support peace and economic stability, social stability in hong kong. We stated that we were sure that that could happen, to the extent that the one country, two systems feature of the relationship between hong kong and the rest of china was protected. Thats what we said. We are happy to see that the statements coming out of hong prc are that the one country, two systems will be supported. We remain hopeful that the National Security law will help to usher in economic and social stability. Nejra yeah. I understand that you remain hopeful for that. Do investors share your hope . Are you getting pushback from investors on that decision . Bill it would be hard for me to see that an investor would in support the hope for economic stability and social stability. Its our biggest market. A time of stability would be helpful. It is what we hope for. Hong kong is in a severe recession right now. It began with the situation last year. Covid has made it a more severe recession. The economic figures coming out of hong kong this week were pretty negative. This is a time that im sure that investors would hope for economic and social stability in what is otherwise a very vibrant and dynamic economy. Nejra were you wonder much pressure from china to endorse the security law . Take ine decisions we terms of arts russians of hope for economic and social stability are entirely our own. I think it goes without saying. This is something that we hope for. The most reassuring thing for me ,nd for all of us in the market hong kong has are made a target for capital. Both from Chinese Companies and others. Its because there was a strong endorsement of the one country, two systems approach. With a strong deference to the hong kong rule of law, the hong kong judiciary. These are the important considerations for hong kong as a financial center. Investors welcome that. Nejra thats interesting. In that case, do you see hong kong becoming a less important market to you over time, as a result of the security law . Perhaps, with a shift to business in singapore. Bill we have big business in singapore as well. Singapore has tremendous advantages. Singapore will continue to thrive. Hong kong will continue to thrive. It is the gateway for capital into china. Its an extremely important regional hub for Financial Services. Theres nothing that weve seen in terms of the actions in hong kong or elsewhere that suggest that that will change anytime soon. Nejra ok. In terms of the hong kong dollar peg bill, with tensions between the u. S. And china rising, one thing that has been tabled is the u. S. Going ahead with undermining the hong kong dollar peg. Are you looking at scenarios in which that might happen . Is it looking more likely for you this year . Bill i dont think so. Peg is the hong kong externally well supported with monetary reserves, over two times the currency reserve. We can say safely that the hong kong dollar peg is unassailable. Wontoesnt mean somebody try to assail it. Im not sure what purpose it would serve come in any case. At the end of the day, hong kong is an integral part of the Hong Kong Financial sense of that system. Attempts to undermine hong kong would have detrimental effects on the system more broadly. Its hard to see any policymakers seeing that is a good thing to do anytime, particularly during a pandemic. Nejra more generally, with tensions rising in the past few months between the u. S. And china, how do you see those relations of all thing . Particularly with regard to the phase one trade deal. Bill its encouraging to see that it is still in place. The tensions and diplomatic back and forth suggested that things were getting worse. We are going into the election time in the u. S. Where the an issue democrats and republicans are aligned, its on the need to be relatively tough with china. I think we can expect those tensions to probably stay stable, possibly get worse. It could impact the phase one trade deal. I think that was struck in the interest of both parties. As a result, it has not been threatened or canceled. Clearly, the rhetoric will pick up. All we can hope for and encourage is the restoration of a sense of collaboration between the two leading economies in the world, to substantial superpowers in the world. The world is in a tough place economically. The tensions that are arising as a result of the trade rhetoric and security tensions is undermining confidence. At a time when we are trying to recover from a pandemic, that is unhelpful. All we can hope for is that the leaders of these countries come back together, find a way to get back to the discussion table. Anotheret me turn to very important topic, which is diversity. Im wondering, in what ways are you currently promoting women, ethnic minorities in your company . Bill yeah. Im very proud of our environment. We have a track record on diversity. Also, the programs we have in place to improve our diversity further. Our board and Senior Management team have the highest proportion of women of any major Financial Services company. We are well over 30 . That is something we are proud of. We have not had to take any externally steps to do that, other than making sure we are developing women from an early stage of their careers, bringing women in where we have the opportunity. Focus has increasingly shifted to not just gender diversity, but also diversity around race, religion. We are an extremely divorce organization diverse organization. , every religion we can think of. Thats not all perfectly reflected in our board and our Senior Management. We are continuing to develop people throughout our ranks. Very active programs. Our Diversity Program is chaired by simon cooper. We have a series of programs to make sure we identify talent at an early stage, develop it, move them around, give them every opportunity to succeed, together with the conventional programs a drowned trying to root out conscious fives. Bias. We are aggressively going after this to improve. Nejra thats great to know. Finally, i want to ask you about your role. Youve been leading Standard Charter for five years. Questions are asked behind the scenes about whether you are thinking about life after Standard Charter. We reported that berkeley is gaining interest for jes staleys role. Have you been approached . I wont comment on anything in particular. My job is at Standard Chartered. I have quite a task right now. We are happy with our first half results. Income up, costs down, capital very strong. Thats all good news. The bad news is, the economy is in tough shape. The operational challenges are substantial. My task is not complete. My focus is on Standard Chartered and getting that job done. Nejra thank you very much for your focus with us this morning. Thank you for joining us. Bill winters, ceo of Standard Chartered. So much coming through. We are deep in earnings season. Nestle, fullyear organic revenue of 3 . The estimate was 2. 7 . Revenuest half organic number, up 2. 8 . The estimate was 2. 2 . Those are the numbers that are coming through from nestle. Dividendting its 2019 to 4. 86 euros per share from 6. 56. It still sees adjusted operating profit for 2020. Basically, vw is coming that dividend after 940 million loss in the first six months. Coming up, the earnings conversation. This is bloomberg. Nejra good morning from london. This is bloomberg daybreak europe. These are todays top stories. Stocks trade mixed in the dollar steadies after the fed leaves rates near zero. Powell vows to do whatever it takes to support the recovery. U. S. Gdp could be the ugliest report ever. Big tech gets a grilling on capitol hill. Ofmakers accuse the ceos using their power to crush rivals and squash competition. All Companies Report today. An earnings onslaught in europe with results from big banks and big oil. We speak to the ceos of Credit Suisse and shall, plus many more. Weve already had a big number of earnings come through this morning. Renault isa crop the latest. A firsthalf operating lost. The estimate was 1. 62. Thats what were looking at in terms of her know posting a 2 billion operating loss. Of 7. 3 9 half net loss billion euros, heavily impacted by nissan. Thats what we are learning. Its not in a position to give reliable guidance for the first fullyear. Thats all we are learning from her know so far. We will speak to the cfo of renault at 9 30 a. M. U. K. Time. Now getting to the markets. Asian equities coming off the highest after we saw a little bit of followthrough in terms of risk on, given what we saw in the u. S. Session. The msci index of 1 10 of 1 . Euro stoxx 50 futures also coming off their highs. That post powell exuberance moderating slightly in todays session. That commitment, that dovish message sends fiveyear yields to record lows. The 10 year yield has been absolutely steady, 57. The dollar turning slightly higher after weakening yesterday and gold pulling back after a nineday rally. Earnings season is well underway. We are in the thick of numbers from oil and gas, banking, autos, and health care. Jim mccormick is still with us. Are there many seems that are coming through for you so far in earnings, apart from uncertainty on the outlook because of covid . Think its a typical season. Theres not a lot of overall market sensitivity to the numbers. Lets be honest. Will it be the worst earnings quarter since the Fourth Quarter of 2008 . If not worse than that. I think markets are pretty relaxed about it. Story is,e macro equities are looking for the next big thing. The earnings season isnt it. Nejra right. Expectations in the u. S. Versus europe, do you think the market will respond to earnings differently in the u. S. Versus europe . Find that the u. S. Versus europe is interesting. The companys in the u. S. To a better job of setting preearnings targets that are lower. If you look at the earnings supply data, the u. S. Is doing far better than europe so far. In the Second Quarter, that probably makes sense. We will see that in the later gdp numbers. The outlook for European Companies will be better than the u. S. Nejra ok. Lets take this through to the credit space, which you watch closely. Seeou think we will defaults rising into the second half of the year, based on what we are learning so far from earnings . Bill yeah. The default cycle in this crisis has been very mild. A lot of people think credit has done well because of central bank work. In my mind, its fiscal support. Showsly interesting study that were it not for a number of somewhereports, between 40 and 50 of companies would already be dealing with liquidity surges. I think these are going up in the second half of the year. How much depends on the question of fiscal fatigue. Can governments continue to support companies . Its a big question. Nejra Jim Mccormick stays with us. Dont miss our top live blog on earnings from europes Biggest Companies this morning. Bloomberg. N your coming up, an update on europes biggest economy. Germanys secondquarter gdp may have shrunk 9 as the lockdown to cold. We will discuss that, next. This is bloomberg. Nejra this is bloomberg daybreak europe. Lets take a look at some of the main stories were watching today. At 9 00 london time, germany will release its secondquarter gdp. It will show the full impact of the europe lockdown on the euro areas largest economy. Its is scheduled to launch perseverance rover on a trip to mars. At 1 30 p. M. , we will watch for u. S. Jobless claims and Second Quarter gdp. Its expected to show a contraction of 35 in what could be the ugliest report ever recorded. Companies apple, amazon, facebook, and alphabet will report earnings. Jim mccormick is still with us. Lets talk about europe ahead of the german gdp. You had a longstanding bullish call on euro dollar. How much more upside you see . Think there is still substantial upside. 125 looks more sensible. The truth is, the dollar is so expensive. Frankly, some of the more dollar negative parts of the story have not come through yet. I think the euro story has been a very good one in the past few months. The recovery was a game changer for us. You are starting to see opening up of economies. It looks pretty successful. We are still quite positive on europe and the euro. Forecasten you see of for german gdp drop of 9 in the Second Quarter, do you look at that and say, that was the Second Quarter. The worst is behind us. The highfrequency data is looking more positive. Jim listen. The gdp numbers are there to give us the most comprehensive plan lens about the hit to growth in the Second Quarter. Ts important it will tell us a lot about the potential for a recovery going forward. Will bethe numbers important. Frankly, the u. S. Will look much better than europe. There will be horrific numbers, probably the worst we have on records. Nejra yeah. Now, you talk about euro strength. Youve given us your call. You said we could get at least 120 on eurodollar. What about btp spreads . Do you see much further compression there . Jim weve been quite bullish on btps for a while. Us reasonry fund gave to stretch the targets of it. Frankly, we are close to our target. 10year btp spreads to germany, we saw at 140 as a good target. We are close to their. We are widening a bit. I dont see a huge amount of further upside. The next round of upside will probably come through the euro and european stocks. Nejra ok. Jim mccormick, great to have you with us today. Talking of european stocks. Its a huge day for earnings. We speak to the ceos of Credit Suisse in the next hour. Plus, angle america, shell, and astrazeneca. Dont miss those conversations, all right here on bloomberg tv. This is bloomberg. Nejra this is bloomberg daybreak europe. Four people claiming to be students have been arrested for breaching the National Security law in hong kong. Beijing says the legislation will bring stability to a city caught in turmoil. Stephen engle delves deep into these issues in our series. Feel that at the end of the day, at the moment we are on an airplane with a lot of turbulence. Everyone is holding on, waiting for the plane to land. In most cases, it lands safely. Or waiting for it to crash. I feel that this is not going to crash. China needs hong kong. They need an open hong kong. They will not they want to make it stronger. Beijing doesnt want a stronger prodemocracy camp. Before the passage of the National Security law, democrat lawmakers have been accused of using disruptive tactics while fostering antichina sentiment. Playing cards, similar to those the u. S. Government put out in a rack during the second gulf war, have circulated here, signaling of the faces a prodemocracy advocates including alberto. There will be a lot of scaring tactics. Many people are being scared away. They want to defeat you without using any force, without waiting anymore. Its the way the chinese play the game. If i say, no, i will never be arrested, were you born yesterday . You live under communist rule. How dare you say that. Ive never said that. Even in 1997. Neither did i predict that i would be arrested tomorrow. We live under chinese rule. Anything, everything that happens would not surprise us. Thats the way they behave to the wrong people. Their own people. We will stay and fight. I dont think i could leave even the one facing risking being put in jail. If i become scared, all the other people will also become very scared. The whole community will despise them. We need to fight until the last minute. Before the National Security law in hong kong, this is legal. After the law, this might be legal. Not only arresting me, even arresting you. It is limited by the new law. Tois mainly the freedom advocate hong kong independence or the freedom to advocate overthrowing the Chinese Communist party. There is limitation of the freedom of speech. Is freedom of the press under threat . No. No . Unless they work ins session or terrorism. Do people have to worry about what they post on social media . And their employees. Yes. If you are not involved and you have no intention to carry out secession, subversion, terrorist acts, what have you to fear about . Be sure to tune into the bloomberg tv special hong kong on edge, covering the social and economic upheaval over the last few months. The special premieres tomorrow at follow the clock 5 00. The fab four of tech got a grilling on capitol hill. Democratic lawmakers told the ceos they have too much power and control over digital markets. The top tech ceos were divided when commenting on the activations of china stealing u. S. Technology. Here are the highlights. We dont believe that the Chinese Government is dealing technology from u. S. Companies. Or are you saying, not just from years. Know no case where it apart. I have no firsthand knowledge of any information stolen from google. Is well that the Chinese Government steals technology from american companies. There are knockoff products, counterfeit products. The Chinese Government stealing technology is the thing ive read reports of. I dont have personal experience with it. From tech ceosd testifying before congress. Lets get more. Great to have you with us, as always. Ill ask you about mc zuckerbergs comments in a moment. Did the tech ceos in general defend themselves robustly . Matt yeah. They did a good job. Definitely, the democrats were better prepared for their questions. There were some uncomfortable moments for all of them. Tim cook got away with a list the least amount of pressure. They did a pretty good job defending themselves and their companies. There were some characteristic lapse of memories that left a few questions hanging in the air. Nejra ok. What should we expect from the earnings today . Matt yeah. Its the mixed a mixed bag. Google and facebook have been seen a big hit to their advertising revenue. For google, theres a lot of focus on their cloud revenue which has been growing for some time. Expectations that some of the collaborations [inaudible] willexpectations that that ramp. For apple, the big question will be about what will happen with iphone 12, the next launch. Whether that will be pushed out significantly because of the coronavirus. Importantis really for future growth. That will be the first five g phone. Amazon had a blowout quarter in terms of sales you after the last two or three quarters, that will be pretty substantial costs for the for film inside of the business. A mixed bag. Expectations are quiet and encouraging for the quarter. Ok. Nejra in terms of the testifying coming you talked about the fact that some questions remained unanswered. Tell us more about that, also about some of the and unexpected comments that Mark Zuckerberg made. Remarks werening essentially trying to deflect the heat away from facebook to paint the company as not as bag big as people think. Dont pick on us, we are not as big as you think. That landed well with the congressman. It was a surprise to people listening and. In terms of the questions going out, amazon came in with some of the most sharp criticism. They were not grilled heavily. That was the issue. Nejra ok. Thank you so much. We got Bank Earnings this morning. Credit suisse Second Quarter net income and revenue beat the highest analyst estimates. Revamp, about a major combining the risk and compliance functions. Thats Credit Suisse. Adjustedchartered profit. We also got numbers from the automakers. Vw cutting its proposed dividend after looking at an 800 million euro loss. Renault posting an operating loss of 2 billion euros. Lots of interviews coming up throughout the morning. Thats it for bloomberg daybreak europe. Plenty more to come. The european open is up next. In terms of how we are positioned for futures, european futures get slapped. This is bloomberg. Annemarie good morning. Very busy day so far. The busiest of the year for european corporate results. Mattt a lot going on in terms of warnings. A lot going on in terms of guest, as well. The market says, keep them companies with Companies Worth 2 trillion reporting. Were waiting for numbers from shell and many more. The cash trade is less than an hour away. We spoke to the ceo of Credit Suisse after his earnings beat every single metric for which we had an analyst estimate. Lets take a listen right now. It underscores the stability of our business model. Results on theod p l, the Balance Sheet. 1. 5 . 6. 2 . What happened with the tier one ratio . A lot of people are expecting it to go down and it has gone up. We were cautious when we gave guidance at the end of the First Quarter because we didnt know how much assets would increase. We managed to control that increase