I am mark barton, a quick look at the market at the markets. We are going to see a second consecutive day of gains if things stay the same for the next seven hours. The stoxx europe 600 is a by 1 today. The mining index is the big performing Industry Group after slumping yesterday. Credit suisse big jump today. We had a loss, not quite as bad as forecasts and brent crude is up today after reporting yesterday up. 6 . Here is nejra cehic. Nejra chinas Consumer Prices continue to rise at a healthy pace in april, but still a bit low the governments target rate. 2. 3 was driven by prices given the pboc a reason to hold off on another rate reduction. Easing ing to an factory gain inflation. Be his topverty will priority as he claims of victory in the filipina in the philippines president ial election. A zero tolerance approach to crime and corruption. A string of on guarded unguarded comments. As ills political system has fallen even further as an old that bodies vote to impeach the president. The announcement by the senate head seemed to take president s and suggested the drive to impeach was back on track. Of moreable database than 200 thousand panamanian Shell Companies have been released in the latest move by the International Consortium of international journalists. It derived from millions of leaked documents. The Company Specialized in setting up secret Shell Companies with clients including relative and associate heads of state like Vladimir Putin and british Prime Minister david cameron. 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. Mark. Mark Credit Suisse reporting a loss for the First Quarter compared with the profit a year ago. Shares are up today. Fixated Tidjane Thiam says he is confident to deliver cost cuts this year. We have done 3500. Target 58 on target at the end of the First Quarter. Billion target of 1. 4 42015 of net savings. We have done all more than half. Mark the chief exec of spoke to bloombergs Francine Lacqua who joins us. Markets have made it tough for banks. Is he expecting less volatility from here . Francine i really try to press him on his expectations for the global markets, the Capital Markets and the volatility did he mentioned the lack of liquidity in the markets. He was very cautious. He says it is difficult to call the bottom get. Is stillng environment. Xpected to be difficult everything he put in place is starting to come in fruition. Market volatility makes trading difficult. Up theiring to build capital buffers. What did he have to say about Credit Suisses capital . Francine this is one of the issues we tried to discuss. He started at the bank less than a year ago. Five months into the job he announced a huge Capital Raising exercise together with an overhaul, a big restructuring of the bank. He almost did a profit warning and had to cut even deeper. The Investment Bank has been a lot of questions about the capital, on whether he needed to raise more. I asked him whether he also was concerned about capital and whether it would be enough to sell 30 of the swiss bank . He says he is confident that is enough and he pointed to the numbers today, 11. 4. He says that is not bad, especially given the turmoil we saw in the markets and Credit Suisse has endured. Mark Francine Lacqua in zurich who spoke to the Credit Suisse chief executive. Joining us now, james bevan, chief investment officer. Poundss manage 6 billion at ccl a. Thank you for joining us. I made a chart just for you. It is Credit Suisse versus ubs. It has been normalized, so the column to your right shows the percentage decline in 2016, clearly conceived ubs has outperformed Credit Suisse but still ubs down 18 . Credit suisse down 33 . What does it take for james bevan to change his view on european Investment Banks . James i want to see a real advantage. On to see a reason why these two players can be winners. The only exposure that we have two Goldman Sachs are the investors technology will give them a cuttingedge. They will get better margins. They will succeed. Mark who is doing best in europe . If you had to pick one Investment Bank, does one stand out against the group lack of james against the group . James i would be thinking about Credit Suisse in the european context, because they do have a very strong franchise. The have great people. New problem is if costcutting involves significant job losses, we dont know if the good people will be the ones to leave. Mark lets talk earnings. Ea function, earnings analysis. This is the earnings analysis for the stoxx 600. Were looking at surprises. All securities, the sales surprise is 2. 5 . Sales are missing by 2. 5 . Earnings has got a green, up by 4 . All of the individual Industry Groups are just below. What is the take away . First of all, we had Better Capital discipline, so we have seen companies attempting to maximize shareholder value. There is been some Financial Engineering which has allowed earnings to rise faster than sales. The second issue is earning has been an asset. That is good news. Lets good news is the earnings and some companies are better than might be expected because they have not invested in the longterm futures companies. Management is cautious. At the end of the day, we need to see investing in projects that have a crematory terms. Mark these are the companies your keeping an eye on. James incremental return is important. Daysu get back to the where high levels of profitability led to an influx of capital, you would have to look at the paper sector, very bad news. They spent too much money. This time around, i see Companies Interested in trying to keep margins high. I look at the Global Companies that are in europe. Companies maintaining the value by a very strong focus. Mark james bevan, chief investment officer. Stay with us. Stay with the pulse. Chinas inflection chinas inflation rate picks up. The chief fixated a Credit Suisse signals the worst is over as the swiss bank reports we will bring you the interview and easyjet lands a loss. Capacity glut what some gains we will ask when profits will take off again for europes secondbiggest discount airline. Mark lets get the Bloomberg Business flash. Heres nejra cehic. Nejra crude is lower this morning after it cut its profit forecast to a minimum of 1. 4 billion euros. Thats compared to a previous to 1. 9 billion euros. Germanys largest steel maker says adjusted earnings in the three months fell 30 from a year earlier to 336 million euros. That beat analyst estimates. The companys cfo told bloomberg how the steel block is impacting the industry. Angela merkel could be helpful and we did see rice increases to reach the 1. 6 billion to 1. 9 billion makeup nine third. It is not only about price increases. Nejra a deck of has accelerating European Economic growth. The Worlds Largest provider of temporary workers said the sales rose 5 to 5. 3 3 billion euros that beat the 5. 2 8 billion euros average of six analyst hurt by phone carriers cutting spending on wireless networks. In its reports, a combined company, First Quarter sales fell 9 to 5. 6 billion euros. Analysts expected 5. 7 6 billion euros. The company is betting on the deal to tap into newer products, such as internet protocol. Etworks that is the Bloomberg Business flash. Mark. K chinas index consumers lets get over to bloombergs allen wan was in shanghai. What can we take away today from the inflation data . Allen i think the biggest take away his the deflation is easing. That is going to help the government to curb overcapacity. Prices could help boost the profits of the companys. My concern is whether or not this trend is sustainable because the biggest contributor to easing deflation was a jump in crude prices. And prices such as iron and iron ore. Inher food prices and a rise inflation could deter Central Banks from cutting Interest Rates anytime where Growth Outlook is very uncertain. Mark allen, there is a great story on the bloomberg about chinas great commodity boom. There any other chinese lurking on the horizon . Yes, one is the property market. We are seeing prices in shanghai surging. A possible 40 increase in my own rent. There are other Asset Classes that are seeing risk, for example bitcoin. It has more than doubled since the lows of last year. Valuationn is the Old Technology companies that have invested in firms which are seeking the list in the stock market. Marco allen, thank you for joining us. Lets get more from james bevan. One of your key macro seems is china. Lets start with how to play china, whether you believe in stabilization or whether you do not believe. James chinas government has capacity to use fiscal policy to achieve the rebalance that is required that any other Key Central Bank or government combined. Therefore their school to do so is much greater. Im very optimistic that it can be dealt with well. When one looks at the preparedness of china to soak up the pain, that i find very positive. , they goods for example usual suspects on the back of the gulf results. Mark you think that is coming to an end . It is necessary to buy the share prices one all of the good news is in the price. Lvmh, relatively flat on its back. The same logic applied . I worry about some of the auto companies. In the european context, i could see her no looking were no doing relatively well. Europeanhe rest of the auto sector is going to have a very difficult time. huge demand for vehicle without having a big headache on how they are going to deal with the transition. Mark the disruption caused by china so you wrote in your piece. Please elaborate. James i look at the pain that has been felt by the Internet Companies in the First Quarter. Big markdowns of the alphabets and the amazons. These longstanding Gas Companies that really know what are doing are going to be fabulous at creating longterm value. The key is picking them up now rather than waiting until the good news is back in the market. Mark we talked early about easyjet, what it is facing. You like one european airline. James iag. They have a well structured business. They know how to make profit. They are back on track. How does one per to speed in these policy trends . Just an investor should look at rollsroyce. The after Service Benefits are enormous. I would say rollsroyce is going to be a huge engine of creation. Mark theyve been battered. Theyve got a new ceo. The revamp is on the way. You are cautious, james. Investors should consider taking equities it to benchmark and why is that . James there is equanimity about the u. S. President ial election. I see you us equities fair value relative to debt. If mr. Trump is the next president and he delivers on this empty foreign rhetoric, i think markets are going to get surprised. Mark when will it start to be factored in . The markets are sort of sanguine. They are not bothered about the election. James i agree. Anticipation, the rates on the upside are constrained. Yet the risks are clear and certain in the context that mr. Trump will be a powerful man. If he delivers on half of his rhetoric, mark james bevan. Up next, brazil dumping erode. The hour. Chart of thats next. Mark results index is one of the brazils index is one of the best performance this year. Here is your chart of the hour. To his jeeps valuation in eight weeks after investors dump stocks on concern that the impeachment process would be derailed. The lower house annulled he reversed the decision paving the way for the senate to begin hearings on the impeachment. This is pricetoearnings ratio. It is, from 10 to 16. Down to 13. 5 now. 36 . S risen by lets talk to james. From january is 36 . Premiumdeserve a . 20 a 20 premium . James [indiscernible] in the mix, there is good news there. I have two issues of caution. Why would one take this risk when there are so many other emerging Market Opportunities . The real economy is starting to impact on company earnings. We have disappointing numbers. Almost entirely on the back of the difficult brazil climate. Atemerging markets, i look some Outstanding Opportunities like the taiwan semi. To inies that are used the context of ongoing disinflation and deflation. Where i would be pumping money today. Mark how are you assessing european equities, given the stronger euro . James the disarray around the future for the euro system altogether. You think how close we got to portugal being downgraded to a noninvestment grade. That would leave chaos and the target. Also it will challenges. These challenges keep getting papered over rather than addressed. Im certainly feel concerned i felt concerned your has political risks concerns that europe has political risks. Has very strong tenants within it. France and germany. I worry much more about the continue to function without having as a single physical authority. We have fiscal transfers through the system. When logix wake up, there will be a problem. Mark james, great to see you. Just as we into the break, i want to see one of the early better performing Industry Groups. 3 . Ad a big rise of almost now the mining index, the gains of the day have almost completely been erased. Credit suisse losses, less than estimated. The stock cutting taking center stage. Tidjanem the thiam next. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Mark welcome to the polls, lime from the bloomberg headquarters. I am mark barton. Getting some trade data out of the u. K. Andill see a trade deficit sure enough, the total firstquarter trade deficit 30. 3 billion, the most since the First Quarter of 2008. We are importing more than we are exporting. The march goods export rise was 1. 9 but the import gain was. 6 . Were estimating 11. 5. The total trade deficit does narrow it to 3. 8 billion but a trade deficit is something the u. K. Economy has had to get used to for decades on end. Lets get the latest bloomberg first word news. Nejra chinas Consumer Prices continue to rise at a healthy pace in april but still below the government target rate. The inflation was mainly driven by food prices that gave the pboc reason to hold off on another rate reduction. The consumer pride index narrowed last month. Poverty will be his top priority as he claims history victory in the philippines election. Commentsof unguarded failed to damage his appeal, capturing about 39 of the vote. The massive wildfires that swept 85 ugh Fort Mcmurray left of the city intact, but completely leveled some neighborhoods. About 88,000 residents were evacuated and production from surrounding oil towns was was cut by about 40 . Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. Mark thank you. Credit suisse has reported a second consecutive pretax loss. Tm isief executive tj and tihanent tj and tm thiam spoke to Francine Lacqua in zurich. Tidjane january, february are very bad. March was better and april was better than march. May showing some positive signs so it is always difficult when you are in that position. We still remain cautious in terms of outlook because it feels fragile, sentiment feels fragile there. I think hopefully, but the market is very sensitive and theres not much liquidity. We have to see about the second quarter. So it will not necessarily be easy to make money . When we look at things like our ipo price line, it is very strong. The same pipeline is quite strong, up 60 year on year. There are spots where we see strength but then there are growth andd Global Growth in china, things move around. On the job cuts, 6000 job cuts this year. Tidjane that was the target, and we have done 3500 so we are 58 into the target at the end of the First Quarter. We think it is progressing at that pace. We had a target of 1. 4 billion for 2016 of net savings. We believe we have already done half of that. We are confident in our target. Not int topic, i am am always sorry to have to talk about job losses but it is a price we have to pay to create the platform we want for our future. We do not believe in a boom investment with great years and terrible years. Successful, we need a Strong Capital base. We need relatively stable income streams, so not too volatile. Something maybe we do not talk about enough, but good compliance. Healthy growth so that we protect the reputation of the bank, which is really our most precious asset. We really think about serving our time our c