Particularly Unfavorable Market environment at the start of the year. Divesand the aussi dollar after the central bank unexpectedly cut rates and its inflation outlook. Meanwhile, the yen surges with an 18 month high. We are less than 30 minutes away from the start of the European Equity trading and lets have a look at where we are with european features. It will be a little bit stronger at the start of the European Equity feature come up. 2 . The ftse 100 is up by. 6 . We are getting some breaking news, really focusing in on what is going on in front in markets around the pound. The pound is raising its yeartodate losses, versus the u. S. Dollar. There have been many concerns about where the Brexit Debate will take the u. K. , whether the u. K. Will decide to leave the European Union or not. Expectations around the feature as seen the pound move up and down. Lets check where we are on crucial asset this morning. 4 comparedup by to the previous growth on the back of that reevaluation around the brexit story i was talking about. Stronger movesot within the japanese currency. The boj did not provide the stimulus we thought they would. Ude, up by more than 1 compared to the previous growth. We are going to have the inventory numbers out of the u. S. Later on in the week. Tomorrow in fact. Aussi dollar down by more than 1 . We saw the rba cutting Interest Rates to buy 25 basis points, surprising some and the market, at least before exchange market. Apps apprised some, but some factored in that moved by the rba, given what we have seen with the negative cpi. Lets get to the bloomberg first wilderness. Juliette the yens biggest rally. Governor, heoj has once again reiterated that policy makers want hesitate to expand monetary stimulus in order to achieve the 2 inflation target. The chief Investment Officer of one of americas biggest Pension Funds has joined Warren Buffett and scolding Money Managers who charge 2 fees on assets under management and retain 20 of the gains. Billionat the 187 california state teachers retirement system called the practice broken. As an investor of b negotiate hard. Capital, weestor of negotiate hard. The model is broken and we are negotiating much lower Management Fees and incentive fees. The englishey won premier league. They could only manage a draw. Leicester city are the champions. They were 5000 to one outsiders to win the title back in august. Global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. You can find more stories on the bloomberg at top. Anna lets turn now to the earnings story from the Banking Sector. Ubs profts plunged, missing analyst estimates. We spoke to the ceo abou t the numbers. At the Market Conditions we have been operating with, the results are resilient. Profitability within those markets is not easy and most importantly, we have been doing that while giving the opportunity and the possibility in a more normalized environment to deliver a stronger result. Anna guy johnson joins us now from zurich. Guy, he was clearly painting a picture for us of what has been a very damaging quarter, for not just this business but many others, but he says that was really little that was positive about this quarter, apart from the wrist aversion. Apart from the risk aversion. Guy i dont think he had much fun this quarter, unless you are in Wealth Management, which was a pretty good number. But we were warned it was going to be tough. The Morgan Stanley conference back in march, he wants things were going to be tough. When you look at the numbers, every single unit had disappointments. The lowest transaction volume ever recorded this quarter. That speaks to everything you need to know about just how tough it is out there. The big question now, do things start to improve . Weit looks like you know, are still in a very challenging i market. None of the issues we have been fighting are disappearing. I think this cocktail of macro issues, macroeconomic issues and geopolitical issues, are now coming on. Know, we will see the vote on brexit. We will see a deescalation coming from the u. S. Election. Potentially, you see lots of factors that might affect the Market Sentiment and in that sen se, you see volatility, but it is not the kind of volatility translating to client activity. It is a paralyzing kind of volatility. Guy it was never going to be easy for ubs. A lot of picking up business as a result of what was anc,ening with the swiss fr but nevertheless, the market will look at these numbers and be disappointed. We will find very shortly when the market open. Back to you. Anna we will see whether that negative trading story outweighs the positive around the new money. Guy johnson joining us there in zurich. We also are sticking with the Banking Sector and we had earnings from hsbc earlier. They reported a bigger profit than analysts forecasted. The stock jumped in hong kong and we are out in front of hsbc headquarters. Haidi, talk us through these numbers. Profit beat estimates, but came in lower than last year. Haidi that is right. We have a number of 6. 1 billion. We were actually looking for a number around 4. 2 billion. That is an 18 decline of the same period last year, where we saw 7 billion. It was a period of resilience, despite these global headwinds. What they did do well was a number of syndicated groups did very well. Chinese mergers and acquisitions will increase market sharing. Sector did banking not do quite as badly, but they did say there was exposure to the selloff her eie in asia. It was a pretty terrible quarter and the bank continues to have exposure to whether the chinese markets, which are the worst performing still into the Second Quarter this year. In terms of that dividend, we have been looking very carefully at the progressive dividend that they hold a soap year. There was some speculation that they might have to let them go, but it is holding steady, flat at . 10 per share. Ubs came in at . 20 per share. That was also better than what we expected. We did see the weakness coming through in the trade finance numbers. This continues to play out and this is a very growth demand and trade demand. That includes right here in hong kong. Anna haidi, thank you. Dollart, the aussi tumbles. We are live in sydney with the latest, next. Anna welcome back. This is on the move. Lets get the Bloomberg Business flash. Juliette commerzbank has reported firstquarter profits that beat forecasts, even as a plunged 50 . The Frankfurt Bank lenders said it slipped to 153 Million Euros. It did beat the predicted bloomberg survey. Phillips were proceed with of the ipo. The amsterdambased company will list the shares on the amsterdam exchange. They plan to build 25 of the units after failing to find a buyer for the business. Bmws profits climbed 2. 5 in the First Quarter. That is as the carmaker invested in developing new technologies, such as the self driving features. Says he is concentrating on sustainable and profitable growth, rather than shortterm profits. That is your Bloomberg Business flash. Anna now, the reserve bank of australia has unexpectedly cut rates as it tries to counter the disinflationary tends sweeping the world. It was a surprise to some and the market with the dramatic effects on the aussi dollar. We are in sydney. Dan, take us through the rbas decision because it did surprise them, at least that is what the fx market suggested. Dan that is right. It still had that shock factor, the decision did. The expectation was that the rba would not cut. Dropped overlar 1 , now around . 75. It started the day at . 77. Now up 100e are points. It is an interesting decision. This continues the trend we have seen across the world, where there is just no first level rise. First level banks have been forced to act. The central bank is really trying to support demand, but it is fascinating to see the way the currency is reacting. It did track down the kiwi with it as well. It will be interesting whether to see if there is more skepticism. Rba does have ammunition on that front, but where it will go remains to be seen. Anna we will wait and see because we did not get guidance from the rba about whether this is it, about whether they are done here, or whether they are happy to sit on their hands . Or whether they want to act . Clues about more fiscal levers later. Dan that is right. By day. E go deeay of those strange setups where you go in a room for seven hours and work on the finances for the country. I have been several of them and of the government is preparing a budget that will start to stimulate growth away from that nonmining part of the economy and 30 to get demand going that for example, will go along with building of trains and growth a series of infrastructure that has been underinvested in for many decades. We might get some guidance around 7 30 tonight, but we are expecting an rba highlight. It is very interesting. They say they have been bouncing out the china concerns. Remain to be seen. If we get another poor inflation rate, it does seem to indicate that the central bank is prepared to act. When you keep cutting rates, there is a sense, and you know this in london, you are feeding into future profit prices. That speculates on real estate assets and that is a huge problem here in sydney. Bubbles are also standing to rear their ugly head. Anna that is definitely something we know a little bit about here in london. Guest. Elcome our great to have you on the program. When you see what happened to the australian currency this morning, a bit of a surprise that the australians are cutting rates even further . We saw a tweak in the inflation number. Anna which was negative . We had a substantial reaction. It remains to be seen. The Australian Dollar has rebounded nicely over the past three months. They were driven by commodity prices, but also, the new set of china. That recovery in china is questionable. It is questioned because it is based on a massive boost from the government, massive lending in particular. And the sustainability of that recovery is questionable. Dollar the aussi probably is now been corrected. I think there is some room there for the correction. Anna how much does the aussi dollar affect the chinese currency . The want to affect Infrastructure Spending today, rather than the mining sector. Policytly, the domestic will be a factor and they are going to try and support the economy. But i really think the china inference will remain very high. Forcoalition with iron ore example, remains very prominent. Thre are some concerns ere. Remain the aussi will exposed to potential disappointments. Overnightimf warning about debt lvelevels in china. Losses ever get these ond ebt crystallize . The we ever see the negatives in the credit cycle, do you think . There is room for the government to shift parts of the debt to ease the pain. But i think already we are seeing some stress along the credit chain in china. Loan. Ar about a rising you hear about some bond issues being possible. You also see some high end mar kets suffering. I think we all already seeing some stress among the credit chain, but it has not been a major focus for Global Markets. But it is something to watch. Anna vincent stays with us this morning. Up next, we take a look at the trading session in asia and look ahead to when things open up her eie in europe. We are just about 10 minutes away from the European Equity data. Anna welcome back. 8 52 inlondon and berlin. We are getting expectations from the Banking Sector in london. Weaker on the back of the numbers they showed us today. A lot of the other metrics look to be worse than what investors had anticipated. Hsbc is trading higher in the hong kong session. We also have numbers from bnp in the dri french Banking Sector. Juliette is standing by for us. Juliette it has been a pretty interesting day here in asia. Untilwill remain closed friday. We had the big 3 drop and a number of the markets closed on labor day had their first chance to react. We have seen quite a bit of selling going off in malaysia and here in hong kong. The hang seng is down by 1 . As you mentioned, hsbc shares are doing well, that we have seen a big switch out with some of those property stocks. The shanghai market is looking pretty good. We did see that coming through a little bit weaker than expected, but showing some signs of stabilization. In korea, stocks are closing higher by. 4 . We had the surprise interestrate cut from the rba. Thats australian equities rise and they are now holding at their highest level since october 27 last year. And a very solid session coming through from new zealand as well. This is what the regional index, excluding japan, looks like, down by. 1 . The yen is getting very close to that 1. 05 handle. This is the fourth day in a row that we have seen gains up on 6 . 1. 05 is that line that the b ulls were calling for information from the boj. 1 dtodaydollar down at . 75. Chaigneau is still with us. The pound has losses against the u. S. Dollar. Is this brexit for a dollar move . Or a dollar move . There is a brexit reaction right there. If you look at the average of the polls, it seems that the stay camp has been progressing of late. You can see a relief rally. I dont think it is going to go very far. Anna vincent, thank you. Coming up, it is the market open, the futures pointing to a flat start to the trading day. Perhaps it will be a little bit stronger i london. N anna good morning and welcome to on the move. Were here in the city of london, moments away from the start of european trading. Here is your morning brief. Plummeting profit in a tough First Quarter for ubs, seeing as topline fall 64 . Tells us that potential volatility from macro events is paralyzing. A beat for bmp. Its showing resilience, but it has been a challenging First Quarter. Revenues held up well in domestic markets, in financial services. But of course there was a particularly Unfavorable Market environment, particularly at the start of the year, those first two months. Anna and the aussie dollar dies after the Countries Central Bank unexpectedly cuts rates and its inflation outlook. Meanwhile the yen surges to an 18 month high. So lets see how the European Equity markets opening up this morning. Teachers were suggesting we would be stronger on the london market, perhaps a little bit sluggish elsewhere. Lets get to mark barton, who has the market open. Good morning. Mark a small gain in london. We are playing catch up after the bank holiday yesterday. The other 1 5 of 1 ; markets are slowly opening. The cac40 is slightly lower, dax a little higher. The big, macro story today came out of australia, the central bank surprising, cutting Interest Rates to a record low of 1. 75 . Its trying to counter this emergence of disinflation in the country that has swept not only australia but the developing world as well. Rba governor Glenn Stevens cutting the benchmark by 25 basis points. It was predicted by 12 out of 27 economists in the survey. Last week we saw inflation data or should i say deflation in the Consumer Price index of the weakest and data on record for core inflation. That spurred todays move. All these currencies are rising against the Australian Dollar today, which has had a good year against its major peers. Every major currency is rising. Ubsday today for banks; saying firstquarter profits fell by 64 , missing analyst estimates. All divisions reporting a drop in earnings. Heightened economic and geopolitical uncertainty, as well as Global Market volatility, led to more pronounced risk aversion. That is what the bank said in its statement. Here are the big banks in europe. As you can see, youear to date, they are all falling from between 17 to almost 35 . Quickly, hsbc, the other big Bank Reported today, bigger than expected firstquarter profits, weathering turbulence of Financial Markets. Stuart gulliver paring costs. Those are all the big u. K. Costs in the last 12 months. Anna thanks very much. Mark barton taking us through the open of these European Equity markets. London is playing catchup is tuesday morning. A big morning for the Bank Earnings season; ubs profit plunged, falling 64 , missing analyst estimates. Guy johnson spoke to se Sergio Ermotti, who says it will continue. It looks like we are in a very challenging environment, because none of the issues we have been given in the last few quarters are disappearing. Issues,ktail of macro macroeconomic issues, geopolitical issues, are now coming on, and we are going to see soon volatility on brexit, other major we see the escalation coming from the u. S. Election. Potentially, you see a lot of factors that may affect Market Sentiment, and in that sense, uc volatility its not the kind of volatility translating to client activity; its a paralyzing volatility. Anna meanwhile, bmp also reported this morning. We spoke to the cfo, who cited challenging condition. The unfavorable environment i talked about has been weighing on our cid, particularly on the Global Markets. Why . Because we saw lower clients with concerns about global growth. There were concerns about the regulatory treatment of some