The carmaker warning on profits and analysts cutting their price target on the stock. Well start off in the financial sector. Santander posting a drop in nine month profit in its domestic market. Profit for the first nine months, 1. 8 billion euros, down 66 compared to the same period last. 90 of government enforced write downs have now been completed. A sxchlt a thinks it will meet full year targets. Revenues up 1. 3 in the period. Strength in property and casualty insurance. And Credit Suisse is targeting an extra 1 billion extra francs in cost savings after posting a slide in Third Quarter earnings. The ceo has been speaking to carolyn roth and she joins us from zurich. What kind of mood did you find mr. Dugan in . Hes always pretty upbeat, and he always talks business, but thats his job. The numbers for the Third Quarter werent so bad. Yes, on the bottom line, we did see a slight miss because net income only came in at 254 million swiss francs versus expectations of 370 million swiss francs. And that was a decline of 63 from a year ago. But after looking through analyst notes, strong Investment Banking revenues of 3. 3 billion swing franks and that is largely driven by the strong feksed income trading which really saw a nice pick up in the Third Quarter. Equity business still somewhat weak. The capital himself has improved and thats very crucial for the company because it was criticized heavily especially by the swing National Bank over the summer and then Credit Suisse took the necessary steps to address the capital shortfall. And thirdly, Credit Suisse came out and said its upping its cost savings target by another 1 billion swiss francs, actually the second time its doing that this year. But i think ive done enough talking for now. Lets listen to what brady dugan said. We focus on the operating earnings. Obviously the fair value in debt distorts the earnings again this quarter and particularly for us because we took measures to strengthen our capital. So actually our debt spreads tightened quite dramatically during the quarter. So we look at the billion two of pretax which is a very good result in a pretty difficult environment and particularly we managed to continue to reduce our cost base, reduce the capital we have against the business and we maintained our client momentum. So i think overall we think it was a very good return. 10 return on equity is among the best in the industry. So we feel like the business is performing consistently and its been transformed in to a lower cost, lower risk business. I hear you, 10 may be one of the best returns in the industry. But then your target is still for 15 . Is it feasible . We feel very confident that well be able to achieve those returns over time. We actually if you look even at the first nine months of the year, about two Percentage Points reduction was a result of the businesses that were just exiting. So if those were just gone, we would have made 12 . And we continue to increase our Cost Reduction targets. We think we can continue to get more efficient on the capital side. So he we believe 15 is actually achievable. Lets stick with the increase in the Cost Reduction. Why did you make the decision, are you attitudely more pessimistic about the long term outlook for the industry . Why didnt you increase it back in the Second Quarter . Well, i think we believe we should be in a mode of consistently driving the business to more efficiency. And thats basically what weve done. As you say, weve actually continued to find ways to run the business more efficiently. Were running now at 2 billion swiss francs less than we were in the first half of last year. We think we can take another billion swiss francs out in 2013. And as you say, weve set further targets in 2014 and 2015. And its really just a matter of continuing to look at the business to try to find ways to make it more efficient to really drive that efficiency. And we think in this environment where you do have a volatile revenue environment, we think thats the case probably for the industry for some time. Having that lower operating cost base is something thats very important to really the resiliency of the business and providing returns for our shareholders. Thats how well get the 15 return target that weve laid out. So, ross, there you go, that was a fairly optimistic brady dugan speaking to me earlier. The more negative aspects in the results, because it wasnt all rosy, the main weak spot was the declining Wealth Management gross margin and that points to even slower declined activity compared to the previous quarters and that could be a potential negative read for the likes of uchtbs, as well, who reports next tuesday. In the next hour, ill bring you his comments about the potential impact of the fiscal cliff and the u. S. Elections. I know youll be around, but lets make sure the viewers stick around, too. Absolutely. Carolyn, thanks very much for that. Nice shot there. It looks nice there in zurich today. Joining us for the first part of the program today, Founding Partner at lieber investment y suisses report card. I think dugan is right to emphasize what they anticipate that they can deliver. Its words you need to hear still on focus of roe target of 15 . It will be some time before they get there, but for a shareholder, this is an important directional drive for Credit Suisse. They did get beaten up very heavily in the summer by the National Bank. We heard the negative segment in the focuses generally focused perhaps on the World Management side being an area of shortfall, but ultimately banks are still going through a major process of restructure and reform. Theres no point in pretending that just because the eurozone crisis takes many a back seat, that suddenly banks will return to being where everybody puts their money. But they have been oversold. Theyve rallied very strongly. Hard to see anything from this that will take the banks higher in the short term. So you think theyre now trading above fair value . Absolutely. What weve seen is a turn in the valuing environment, but the market took the stocks from being 15 discount to value to 15 premium to value over the course of the last few months. Theyre only one of the sectors in the market which actually shows us identifying a positive outcome for risk appetite. A lot of risk p appetite here in the sector and i dont think these numbers and perhaps ubs next week will reinforce it, is an tan dear, these are just telling us actually the turn is in, but lets not get carried away. Banks have been the ultimate swing on sentiment. Any sign of the ecb action announcing omt, qe, spanish yields coming down, bank sector rally, you think its all in the price . What we saw earlier this year is that the whole market in europe was very driven by one or two sectors. Banks were the swing factor in qe and q3 and the whole market is getting to an equiequilibrie. That was just water, right . Okay. Dont worry about that. Talk about banks. Finally good news ondeposits. The first rise in six months. Greek deposits highest level since may. Italian up 2. 1 on the month in september. Italian Bank Deposits have hit the highest level on record. French, german Bank Deposits, irish, cypress, all down 0. 1 on the month. So make of that what you will. Actually just a quick reaction. Spanish bank deposit number, is that sort of reflecting what youve just said . I think we have to recognize that these bank deposit numbers can obscure a lot of the detail in terms of who the net holders are. But i think the real message from these numbers that the market will take away right or wrongly is that from the sentiment point of few, the fear factor has reduced significantly. Weve already seen that in terms of Interest Rates. Bank deposits are stabilizing. That has to be good news for sentiment. Meanwhile, three of europes biggest phrma companies have also reported earnses. Assist tar take astrazeneca was worse than forecasts. Their goal is to restore the company to growth and scientific leadership. Also the loss of a u. S. Pat tent on top selling Blood Pressure drug which hurt novartis earnings. But in line with what analysts have expected. Theyve had a 32 drop in quarterly sales. Sanofi posted a 3 rise in sales in the Third Quarter. Stefane has reaction on that stock. That was actually a good surprise this morning. The drug maker is now you targeting a 12 decline of its business net income on the full year. Thats to compare with the previous guidance of 12 to 15 decline. Its growing businesses like the vaccine division. Third Quarter Results were stronger than expected. 2. 2 billion euros, but still down 7. 4 . This morning the ceo of sanofi told reporters that the company is seeing the light at the end of the tunnel for the last two, tlooe years, stand if i was looking at ways to revive growth because of this strong competition on its key treatment. Chris, youve got a green light on sanofi it says this morning in the lieber investment green stars. What we do is look through the universe of stocks to identify stocks that are well positioned potentially responding positively to news, but also in terms of their outlook for value and investment opportunities. Green star signals we already had a positive view on the sector in general relative to other sectors this week. We feel health scare is positive so far. Negative being autos. Thats playing out this morning. So when were looking at individual companies, theres an opportunity for value to be recognized. When Companies Report respect people can look it at the details. Typically stocks move back to where the value trends are. Trading a bigger discount the value would be normal. Trend outlook is positive. So were narrowing that gap again. Its a shorter term trading focus for us, but certainly something positive our radar screen. The new ceo of astrazeneca, the ceo, how do you proceed now that . Sorooroit soroit. How do you pronounce that . Im cheating. Ill put it on the auto cue. I would say soroit. Okay. Its just since hes become ceo, i havent been able to pronounce it right. You preannounonounce it the want. Thanks for that stefane. Catch you a little bit later. News coming out of philippines. Central bank cutting overnight borrowing rates by 25 basis points to 3. 5 . So another central bank trying to ease things up around the globe. This as asia gets into its full earnings season. May show a striking contrast between Southeast Asia and rest of the region. Expects to report an average of more than 16 rise in earnings from previous years figures. Partly driven by a strong domestic base. You how are you playing asia . Well, we actually look at 6,000 companies worldwide. So what were really looking at is the similarities between the markets and recognize the report there talking about the domestic market. We know asian stocks generally are focused on whats happening in china and leadership changes. So thats dominating the story in north asian markets. Were not really in the the earnings season yet here, but certainly the message across board both in europe and states and asia is everybodys focus is on the revenue lines here. Were looking not just at the ability to deliver against earning, with ybut really what happening with demand balances. Expectations are reasonably optimistic. So once thats already being reflected in positive anticipation about the growth outlook, it also puts it in the situation of running just the same kind of disappointment that were seeing in the European Market or in the u. S. , which is the very clear focus on top line revenues if you fall short turnover, the market is very unforgiving. Chris, stick around. Look me is the name of a uk startup that says it has mobile advertising figured out. Does the company have the answer for the likes of facebook and google . Well hear from the ceo. Plus why does one of the gulf regions leading contractors think africa is the market to penetrate some get a taste of access middle easts as well in 20 minutes. Also well put the pedal to the metal in the global auto sector. Well find out how hyundai is driving up sales. And chris says autos ranked as the second worst of all sectors. Plus it wouldnt be Worldwide Exchange if we werent getting Investment Strategy from every corner of the world. A guest recommends keeping a strong overweight position on equities. All of that still to come. Meanwhile here in europe, were just over an hour into the trading day. Up at the session highs. Advancers outposting decliners by nearly around 8 2 just after slim gains from yesterday. Xetra dax up two quthirds. Keep an eye on the bond yields. Might be always lower today in spain than we were yesterday. Weve had a look at a lot of the stocks of course. Ten yield spanish yields 5. 5 . Some other companies we havent mentioned reporting today, likes of unilever and wpp. Unilever up 3. 2 , numbers coming a little bit better than expected. Talking about gray swans dwa, four gray swans, not black swans. Well get into that, europe, china, hard soft landing. Credit suisse weve talked about and daimler with a profit warning last night. Stock down 3 . Currency markets, eurodollar hit 1. 2929 this time yesterday. Its back to 1. 30 as you can see. Dollar yen back over 80. Aussie dollar got a boost yesterday from china pmi numbers. Sterlingdollar up to 1. 6084. Well be getting the latest gdp numbers out for the Third Quarter for the uk and is expected to show uk is out of recession coming up in around 15 minutes time p abo. It could be more. David cameron suggesting more good news to come on the economy. So well keep our eyes on that, as well. Right now its time to recap the asian trading session. Some selling pressure today. The pboc has drained liquidity from the Banking System for the second straight week. This signals the central bank isnt inclined to ease further in the near term especially after recent promising data. The china currency is trading around it all time high against the glean bareenback. Shanghai composite was dragged lower by infrastructure plays and commodity majors. Banks also under pressure ahead of earnings. Theyre expected to report slower profit growth. The hang seng managed to extend a ten day winning streak helped by the services sector, but industrials tumbled. Meanwhile concerns over earnings dragged the tyex lower. Nikkei hit a four week high. More on that from tokyo a bit later. But sharp sales tumbled more than 4 after a profit warning. The kospi turned higher in late trade. Hyundai motor jumped up more than 4 after earnings beat forecasts. Well get the details from saul. Aussie market ended marginally in the green helped by gains in the property sector. Sensex higher by still to come on the program, skidding earnings for the auto industry. Ford expected to announce another plant closure. Plus were breaking those uk Third Quarter gdp numbers in around ten minutes. Bob. Oh, hey alex. Just picking up some, brochures, posters copies of my acceptance speech. Great its always good to have a backup plan, in case i get hit by a meteor. Wow, your hair looks great. Didnt realize they did photoshop here. Hey, good call on those mugs. Cant let em see what youre drinking. You know, im glad were both running a nice, clean race. No need to get nasty. Heres your honk if you had an affair with taylor yard sign. Looks good. [ male announcer ] fedex office. Ave 50 on banners. One of the top stories trending on our website, apple. Investors looking for a 20 swing up or down. Find out the whole story on cnbc. Com. Are results a swing factor for equity markets . If you want to join the conversation, worldwide cnbc. Com, cnbcwex or rosswestgate. Well dig into autos or drive towards them. Top firms doing all they can to keep profits up. Sherry has more on honda from seoul. How are they doing . Hi, ross. Hyundais motor q3 profit coming in at 3 billion. 3 on year lower than the Second Quarter as its labor unions strikes, walk outs in the summer really hurts its production. Its quarterly net profit up by 13 to 2 billion. Really its overhe sea hseas pee that saved its numbers this time. Because of the domestic slowing of consumption. But many analysts are saying this time the numbers were okay, but the problem is next year. And that its questionable whether it will be able to sustain its rate of growth in 2013. And another concern is the currency factor, the strengthening of yuan which hit its highest level. Theyre drawing up plans based on that currency factor and its forecast of 3. 6 growth for the global auto industry, todown fr 5. 1 for this year. Thanks very much for that. Indias auto guy and also set to report earnings today. Ekta has the preview from mumbai. Thanks for that. This time around, were expecting Revenue Growth of around 30 and operating margins at around 11. 2 . And absolutely flat on the sequential basis as well. To put things into perspective even the profitability is expected to grow around 11 . But this quarter in particular, these numbers are not comparable strictly simply because of the year on year basis of any can dpm, which is basically the numbers actually for this quarter are not comparable on a year on year basis or it is possibly comparable on a sequential basis. There are a couple of key things to watch out for because volume growth has been up around 7 in this quarter particularly, where takes has been led by the auto sector volume. So overall, its expected to be pretty much a subdued quarter for m m in terms of quarterly earnings, but its has been d disappointed. But so m m is expected to deliver in it terms of growth and sustainable margins. Ekta, thanks for that. The latest from india. Meanwhile shares in daimler falling in early trade. Issuing a profit warning citing worsening Market Conditions. Says it will now miss 2013 forecasts by 1 billion euros, will not meet its divisional targets either. Daimler posted a 2 dro