Let us quickly check on the markets. Quite a lot going on. I am looking at the stoxx 600 in europe which is gaining a touch on the backs of gains in Energy Companies and a bullish outlook from one of the sectors bellwether. Looking at the dollar. And the fed and what we will hear from powell. Therude oil including impact of the opec meeting. We need to wait a little more to see how long we will cut production. A lineup our lineup today is looking pretty good. We feature some of the top names in banking and economics including Tidjane Thiam. We speak strategy and outlook on the Global Economy. And jim oneill. He speaks u. K. And emerging markets. Later, we will also speak with John Studzinski from blackstone. Let us get straight to the bloomberg first word news. Nejra in the u. S. , the Senate Tax Bill is headed for a debate. Should it pass, Republican Leaders will have to hammer out a compromise. Two republican members of the senate what your say they may not agree to vote the measure out of committee today. Delaying progress. And putting plans for a full senate vote in jeopardy. Nominee for the Federal Reserve says he will not shake up the fed if confirmed. Broad powell signals support for how the fed operates, regulates, and guides the economy and is in line with the strategy set up by janet yellen. We will bring you all of the breaking news out of the confirmation hearing from 3 00 p. M. U. K. Time. Japan has reportedly received radio sickness radio signals suggesting that north korea may be preparing for a Missile Launch test. The type of missile was not specified and the radio signals could be from winter training by the north korean military. The bank of japans governors says asian economies are more resilient against economic shock. He was speaking at an event that marks the 20th anniversary of the Asian Financial crisis. Capitalization of asian local bond markets is trillion, to 3. 7 more than 100 times bigger than before the crisis. We have certainly made progress. Economies have become more in the Financial Sector has developed significantly. Ireland, the controversy threatening the government and the brexit talks has escalated. The deputy Prime Minister, Frances Fitzgerald, aces a cop a noconfidence vote. It could pull down the minority government. Says theof england uks biggest lenders emerged from the latest stress test with the strength to keep lending even with a disorderly brexit. Barclays and rbs fell below the systemic reference point. But the boe says actions taken by the banks since the end of 2016 means that neither need to bolster their capital. Global news 24 hours a day powered by our 2700 journalists and analysts in more than 120 countries. This is bloomberg. Francine thank you. Credit suisse is entering the final phase of its threeyear turnaround plan. The focus on Wealth Management is paying off with the bank saying provisions in the Third Quarter has have been good. How confident is the ceo, Tidjane Thiam as they head into the new year . As always, thank you so much for joining us. Mr. Thiam thank you for having me. Francine you are slowly progressing towards your goals. What happens next . Mr. Thiam the final year of our restructuring shows our strategy is working. We are focused on Wealth Management. Our personal Financial Assets have grown by 26 trillion. That focus is justified and paying off. We believe in our integrated strategy. Happy with our current side. Should never be too happy, but as far as we are concerned, after a year and a half of work, we have had good progress. You are targeting 17 billion in 2018. What happens after that . Mr. Thiam it is a bit tricky. We started with 1. 9 billion in net savings in 2016. We believe that is competitive in the industry compared to our peers. Fundamentally, i believe that any organization should improve its productivity by 2 or 3 . I have always said the big restructuring was to reach a plateau to which we could reach the Global Economy. Fundamentally, when you have to do a big Cost Reduction program it is because you have not kept pace with the industry and the paring by pairing by your costs. Francine in terms where do you see the growth coming from . Wealth management. Productivity. Growth for revenue. Mr. Thiam we are very positive about the World Economy and the u. S. And about the emerging markets. Including china. Europe. With the election of the french and germany, the synchronicity of europe. For once, we had the three Major Economic zones doing well at the same time. Quebecs. Capex. It can create a scenario where growth with high low inflation. In capital and productivity grows, you can get into a healthy growth scenario. Theme i wasg was liquidity. Francine and it is slow. Mr. Thiam and communication around it is very good. Asset valuations are as high as they are and it is important to take the investor by the hand and not surprise him or her. So far, the Central Banks have done a really good job with that. We think that emerging markets will be ok. And emerging markets, we think they will be ok. In the background, you have industry. The lack of the ability of credit put a damper on growth since the financial crisis and that is starting to shift. We can support our currency in their m a ambitions. Francine are you not worried about china . Governor will have a lot to deal with and a huge debt. Chinaiam you can look at in a number of ways. What we elect to look at is the gdp and capital. It is about where the u. S. Was in 1950. 25 years ago, it was where the u. S. Was in 1825. That is a piece of a transformation that we are witnessing. There is plenty of growth still isilable but the good news the focus on stability of the currency. If the currency is stable come it reduces the likelihood of a trade war. Andgs are correctly priced lowers that the likelihood of trade issues. And it increases capital outflows. In the the main thing current mix in china is the focus on the stability of the currency. We areprise you quite focused on millennials. We think it is one of the largest generations in history. Our Investment Outlook in 2018 is very well covered. They are trending on the World Economy. Initiative inthe investing. That is a major theme for me, they are behaving differently. ,he emphasis on green energy they are fully digital these they are fully digital these trends are here to stay. Francine some believe that your targets are so are too ambitious. Mr. Thiam all i can say is we have a Wealth Management target and a consensus for 2018. Consensus for 2017 is above our 2018 target. 91 of aat the target. Are you happy with the structure of Credit Suisse at the moment . One of the things people may wonder is to see you handle a Wealth Management unit as a whole. Mr. Thiam i always read closely what peers say. Markets are very different and it is important to be agile and to decentralize and to create local accounts. We have adopted geographic colonization. What you want to do is have a disenfranchisation. We are showing that we can grow and be efficient. Francine thank you so much. We will be back with surveillance. We continue our conversation with Tidjane Thiam. Later, we will talk about uber with jim bylund, the founder jim mellon, the founder of the Burnbrae Group. Is bloomberg surveillance. Good morning everyone. I am at our new European Headquarters in london. Let us get straight to the Bloomberg Business flash. Generale expects tax changes. And to cut additional jobs in france. As many as 900 job cuts may take place. Resulting in a charge of 400 million euros. Positions top of the they already announced they would eliminate. A surge in a business after one International Client agreed to use its technology. It will use the u. K. Online growth system first on its website. They will spend at least two years building a customer performance center. 20 shares rose as much as in early london trading. 3 ing gained seven point yesterday. Softbank and a group of investors are trying to purchase a stake in uber at a sizable discount. The Technology Giant and general including atlantic are offering to pay more than 6 billion for a state that would value uber at 48 billion according to people familiar with the deal. And who were spokesperson declined to comment. That is the Bloomberg Business flash. Francine europes economy is improving with the block enjoying the greatest growth in decades. Growth picks up, centralbank policy is on track to be normalized. The ecb will extend qe at a diminished pace. Pledging to do more if the inflation outlook fails to improve. What does that mean as we head into the new year . I am very pleased to welcome back the ceo of Credit Suisse, Tidjane Thiam. About howlking before banks are going through a difficult phase. The about consolidation in industry. We understand that ubs may be looking at commerzbank. There was a change at the top. What does that mean to your competitors . First, the strategy label has been to grow and generate capital organically. We are very focused on organic growth. We had 33 billion of mma in the first few months. Make should be seen within that. It is not a secret that some of the bestperforming banks have been a product of significant consolidation. Scale is positive in our industry. And it is quite easy to make a case that the industry in europe is too fragmented. I am not the first to say this and i wont be the last. After that, it is a question of feasibility. Francine are you gearing up for a phase of consolidation . Is 2018 the right time . Mr. Thiam my fundamental beliefs in the industry to be a Successful Bank, you need a profitable and strong domestic market. You will be hardpressed to find a Successful Bank that does not have that. American banks have that in profusion. Having a solid, profitable domestic market to back you is very important. After that, you grow outside. We have a choice we are lucky to be in two of the wealthiest markets in the world, the u. S. And switzerland. And after that, we project to across the emerging markets. Two of the largest free banks in , two of the swiss banks, and in the rest of the world, we are following the same strategy. Feel a pressure from shareholders to give back . Once it you are extremely or even medium happy, will you give back to the shareholders after the overhaul . Mr. Thiam we want to rebuild shareholders. I am painfully aware that i had to dilute my shareholders significantly, but there was no way to solve the Credit Suisse problem without a massive dilution of shareholders. Once we did that and solve the capital question, i am grateful to the shareholders for the support that we got for that. We raised 4 billion and now our market cap is 7 billion which shows a belief in the market. Profit andate more the bank does better in 2018, we at the end of november, we will show our first profitable year. Going forward, the plan is to return capital to the shareholders. It will be out of my hands. My job is to run the bank and generate capital and then it is the board to decide that will decide what to return to the shareholders. There are things on the table whether it is special dividends or other options. But, that is still down the road. We still need to execute well to get to that point. Francine how many questions do you get about compensation . Mr. Thiam not many. What is the question . Francine what will compensation look like in terms of bonuses . In 2016, it was in terms of numbers. Issue. Ed the doj we think it was key to lay the foundation for the future. But we had some very unattractive numbers and in the end, we protected the franchise by paying our staff. This year, with the improvement in results, there will be a balance. You should not expect anything spectacular, but something fair. Not a big increase compared to the previous year. More than weaid should have in terms of numbers but fundamentally, our number one objective is to operate profitably. Compensation comes after that. The conversation should not focus on that. Our objective is to perform well. Francine i also want to talk about brexit. We have some figures about the big banks here in the u k here in the u. K. How banksu make of are preparing and dealing with brexit . I think we have refrained from spectacular announcements or pronouncements on brexit. Francine you are one of the more cautious. Mr. Thiam i once had the life of a government minister and i have only respect and appreciation for government officials. They are doing an incredibly difficult job. Having been involved in international negotiations, these are tricky and sensitive matters that engage the future of millions of the of millions of europeans. We do not take that duty lightly. We communicate with the staff as well as we can but there is still a lot of uncertainty. Francine have you invested less in u. K. Assets, for example . Do you need to take bets that move you away from the u. K. . Mr. Thiam we had a starting point that had nothing to do with brexit. In 2015, it was clear that we were going to build up in the u. S. , switzerland, asia, and the emerging markets. London had a number of difficulties. We reduced the Balance Sheet in the u. K. And our portfolio was reduced significantly. Took we wanted to take our business that to a profitable position in the u. K. Back to my central point. The main goal is to be profitable everywhere. We have sadly eliminated more than 3000 positions in the u. K. But this is all to get the business in a healthy position for the future. Hadcine and you have never and you have never said much as to where in the eu you might move operations was that because you were being respect ful . Mr. Thiam we have been clear about the options we have been looking at. But this is not a major issue in terms of the profitability of the business. We have dublin. We set up in dublin two or three years ago. That has always been a hub for our european operations. We have paris. We have madrid. Unlike many other banks, we do not have any operations in frankfurt. This is all between london and dublin, paris and madrid. You can expect the ultimate answer to be some combination of those cities. Francine we have to talk bitcoin. What exactly is a bitcoin . Mr. Thiam a brief answer. Water byet into hot answering this. This is an Interesting Technology that has a lot of potential. The point i would like to make is that between Digital Currencies and cryptocurrencies. Digital currencies are interesting and have potential. Central banks are looking at this to try to give it the characteristics of a currency. Cryptocurrencies are a different matter. What i have said is that there are transparency and compliance issues around the cryptocurrency. Everyone knows the meaning of crypto associated with currency. Consortiumloping a to look at this. We are cautious about bitcoin because we think it has a number of unattractive characteristics. Francine can it become attractive if it becomes regulated . Mr. Thiam of course, if it is regulated properly. I know Central Banks are actively looking at it to regulated. At that point, it will become another asset or asset class that can be treated. Francine with the central bank ever adopt it . Talk to me about regulation and basel. Mr. Thiam things are moving in the right direction. An announcement regarding a number of changes. I think, as banks have revealed fsbr Balance Sheet, and the that Credit Suisse down was for me and the team a big day because it is an external valuation of the hard work we have done. This was a big day. Have deliberated to reduce their Balance Sheet. Francine i know we talked a little less time when i came over for the results and the pricing structure but who will ultimately be the winners and the losers . Mr. Thiam i wish i knew the answer. Francine i think a lot of people wish they did. Mr. Thiam these are some questions that i dont know the answer to. I spoke with some people at Credit Suisse and we do not know. Is a complex situation. It will depend on what the different players do. We will have to come back to this in the coming months. ,rancine mr. Tidjane thiam thank you for joining us on bloomberg surveillance. Coming mr. Thiam nejra lets get straight to the Bloomberg News. The tax bill is headed for a marathon debate are in a Republican Leaders will have to hammer up compromise between different religions provisions in the house and senate. They may not agree to vote out of committee today, delaying it and putting plans for a senate vote in jeopardy. Donald trump stomach to have the Federal Reserve said he does not plan to shake up the bank if confirmed. Signaled run support for how the fed operates , regulates, and guides economy. That keeps him in line with he islen who is on on track to succeed in january. We will bring you news from that confirmation hearing. Japan has received signals suggesting north korea may be preparing for a Missile