S. A. P. Gets a boost after they lift the First Quarter profit. The ecb is considering a plan to increase hair cuts on greek Bank Collateral if athens fails to convince its International Lenders on reforms. Hi everybody. Good morning. Good morning. Nice to be back. A lot going on still and this week crucial in regards to greece. Earnings. 150 companies on the s p. Some of our guests are optimistic with regards to earnings but most people are saying we could be in for disappointment. The outlook is going to be harder this year. I dont know. I think the expectations are so low that it give mrs. S more room for companies to meet expectations. It depends on which sector youre looking at. The tech sector has been quite buoyant but then you have other sectors where theres still some nervousness with Global Growth and cyclicals out there. Weve seen a pull back in them. Energy. Oil price 60 barrel but theyre going to have to compensate for the dramatic drop weve been seeing over the past couple of months. Something well get a better eye on over the next couple of days. Speaking of earnings though Credit Suisse. Yes. Profits drop 20 in First Quarter thanks to tragd gains from market volatility. This as they took in an additional 7 billion swiss franks during the period. Carolyn has more on that story. Good morning to you seema and louisa. According to analysts the results from Credit Suisse were mixed. Better than expected and a very strong First Quarter driven by volatility and the rebound of equity and fixed income trading. But that said that was an advisory and underwriting, those were some of the areas where it was a little bit weaker but were seeing an upward trend going into the second quarter. Secondly shares in this company dropped well since the first of the year. Especially since the ceo was announced. Since then shares higher by 16 . Maybe what were seeing today seema is a little bit of profit taking. This morning i spoke to the ceo about whats in store for the rest of the year. We certainly continue to have very strong backlogs in terms of the business thats out there to be done. I think that the money flows continue to be strong into equities. Obviously some of the fixed income markets, that continues to underpin markets around the world. There certainly are big risks out there whether its greece or other geo political issues and the question of if and when Interest Rates go up. There are a number of concerns out there but the market does seem to continue to shrug those off and we see a lot of business to be done between now and the next couple of quarters. What about equity markets . Again its a question of when you have negative Interest Rates across lots of sectors of the fixed income side a lot of the money ends up moving into equities. So whether or not that means that those that money is moving into also an overvalued sector is the question but i think our view is that its probably going to continue. All right. Theres been so much debate about whether this decline in the Investment Bank whether its been a structural one. You have taken that view because youve been cutting a lot of your underperforming businesses there. Or if its just a cyclical one. What is your view on that . Theyre both elements in the business obviously. There will be cycles so some quarters some years, youll see better environments from Investment Banking. Some less good. We have been of the view that we have been in the lower part of the cycle and we will move into the better part of the cycle but even within that a lot of structural change has to happen. With the leverage ratios out there its impacting different parts of the business differently and there has to be a response to that. Weve really tried to change the structure of the business in a way that it is much better suited to the current Regulatory Environment which is more of a sector. Is there a sense that this drive to pull back the Investment Bank will that be intensified under the upcoming ceo. Quite obviously thats a question for him to look at when he comes in. I think obviously the structural issues within the industry will continue to be porn issues that are going to have to be addressed. So i think different parts of the business will be impacted by the additional regulatory requirements coming in and everybody is going to need to respond. That was brady dogan. We saw high quality in areas they dont want to be growing. And low quality in investment management. The bank will want to put more focus on Wealth Management and thats probably also why were seeing a little bit of disappointment throughout the trading session today. Yeah down about 2. 7 in todays trade. Carolyn, thank you. Head to our website for the full break down of Credit Suisses q1 earnings at cnbc. Com. German Software Provider s. A. P. Benefitted in the First Quarter. The net profits have been squeezed by its transitions to profits based in the cloud. Annetta joins us this morning. Thats the first time in years we got good numbers from s. A. P. When it comes to the cloud business. The shares are also reacting so positively that its transitioning to more internet based solution for s. A. P. Is bearing its first fruit. Looking at the performance, its up more than 130 while at the same time their bread and butter business from the past but still the biggest revenue generator, Software Licenses is also up by 12 . Surprisingly looking at it mea is doing stronger double digit growth there. Saying across the board, germany is very strong s. A. P. In the statement. The region is adding more than 100 and also asia pacific for license and the cloud revenues and that is mainly also on the back of the lower euro. Of course that is helping s. A. P. Tremendously as a worldwide organization. Very big in the states and that is here to stay. S. A. P. Is also saying that the lower euro will add more than or roughly 30 in revenues for this year and that is only because the euro is so cheap. Back to you. Annetta, thank you. Mixed picture for u. K. Earnings with sky leading the pack. Shares hit a 14 year high after reporting a 12 rise in 9 month operating profit to more than a billion pounds. Now they signed more than 240,000 new customers in the quarter. A 70 rise over last year. Arm has 30 rise in First Quarter profits boosted by Strong Demand for smartphone. Arm also expects 2015 revenue to come in line with expectations. The company beline brans like silver spoon, sugar, suffered a 4 fall in pretax profit. That stock trading down and bad weather has hampered information at the worlds second Largest Mining Company with production rising 12 . That rise was less than what analysts were expecting. Lets talk more about u. K. Earnings with Richard Hunter head of equities. Thank you for joining us here on Worldwide Exchange. Out of the numbers on the wall which one do you think gives us a good indication of what to expect Going Forward from stocks on the u. K. . Obviously arms rise in terms of profits in the share price has been expoints higher nennential. In terms of sky this is more interesting as much as the media sector is very much transforming. It would have been quite a shock five years ago to imagine sky being like the same place but with the consolidation were seeing with quad play and stocks specifically having the quality in german and italian businesses some of that has continued to wail the market consensus as of late but todays numbers showing the Strong Customer growth and concerns. The ftse 100 houses multinational names. 22 report their earnings in dollars. Another five report in euros. How much of an impact will the ftse 100 have based on currency head winds given the exposure overseas. Its an interesting one. As much as we expect to see Strong Quarter earnings in europe because of the weaker euro and head winds in the state in terms of the strong dollar, you have a bit of both. It depends where the companies are trading. Sterling has been strong against the euro and not so strong against the dollar. A lot of those companies are u. S. Facing. A pretty standing figure here too, you talk about the opec decision to keep Oil Production despite the growing demand that its wiped about 80 billion pounds off the oil and gas sector on the ftse. Yes, thats right. Weve seen that echoed in the mayors majors. Both bp and shell have had to say we will maintain and protect the dividend and on the other side of the coin thats been a boost. Almost a tax cut for the consumer. Is it too early to get back into some of these oil and Gas Companies . Many of them have been sold down quite substantially. Is it time for a come back . Depending on your attitude to risk, of course the oil majors are continuing to consolidate the operations and where they see opportunities as we see with the shell bg deal. Theyre going to look to what they perceive to be making longterm investment buys at slightly cheaper prices. So with the baring in mind that youre being paid to wait nor the dividend for the likes of bp and shell theyre toward the lower end of the risk spectrum. A mix of about 10 of the ftse 100. Our focus will turn to tesco that reports tomorrow. We want to continue to discuss the u. K. Stocks as well as the impact of the general election coming up on may 7th. And dear viewer what do you think . Is this the time to get in on stocks on the ftse 100 . You can email us or tweet us at cnbcwex. But for now, an update on the market with lou. We saw this announcement coming into the session yesterday with more economic stimulus measures and weve seen the asian markets overnight relatively steady to stocks steadying on the back of the move to cut their requirement ratios. Here in europe higher by over 1 at the moment. So were maintaining slight gains in todays market session. Moving on though and showing you whats happening to some of the main markets out there, the ftse, xetra dax, cac 40 all hanging on to gains. A little bit of a pull back in athens in yesterdays market trading. We continue to see that in todays session without athens off by 2. 5 or so. We continue to have these greek debt negotiations taking place. The imf, creditors all talking to greek officials this week and its an important week to keep our eye on greece. We continue to see moves in the bond yields. Speaking of bond yields in greece weve seen this inverted yield curve taking hold. A lot of investors still fearing you could be look at some type of default. Well be talking to one of our guests later here that says buy greek bonds at the moment. It will be interesting to hear what he has to say and looking at the ten year in the u. S. A yield of 1. 9 . You have a yield in germany continuing south as well. We did hit a level of 1. 05 not that long ago. We have come back a bit but still some arguing that we could be looking at negative german yields at some point here in the not too distant future. The 10 year in the u. K. Yielding. Theyre almost at 13. 5 . The fx markets, you have a euro dollar right now hanging on to 106, 107. Were a little bit lower on that. Its interesting to see we havent had more reaction in the euro given these concerns of a possible greek default. A lot of that has to do with the fed and speculation about when we could be looking at the fed hiking rates. You have wti crude hanging on around 55 or 56 barrel. Brent off shy of 1 around 62 or 63 barrel. Spot gold and spot silver flat to a tad higher. Also not to forget the asian markets because you would have noted lower for their fifth straight session in a row. Theres a lot of concerns of a softer corporate earnings season. You have some pretty significant drops seen on the indian market. Nikkei 1. 5 and hang seng index higher by 3 seema. Coming up on Worldwide Exchange happy birthday to your majesty as the queen celebrates her 89th birthday were getting your messages for the worlds oldest monarch. Is an early break up on the cards for yahoo and microsoft . We bring you the latest news ahead of its earnings release. Plus if you have around 25 million in spare cash we can tell you how to spend it. Stay tuned to find out. Theres a hint right there. Wooo welcome back. Were very glad youre with us this morning. 16 days to go before the u. K. Election. The latest icm pole has the conserve tifrs ahead conservatives ahead. Wilfred frost has been taking a look at the possible outoutcomes. The prize moving into the house behind me and becoming Prime Minister of the United Kingdom but whats the process in order to be able to call number 10 your home . Well in a u. K. General election voters cast a single vote for one candidate in their local constituent sys. Each of which gets one member of parliament that is in the house of commons. Its been convention that the leader of the party that wins the most seats is invited to form a government by her majesty the queen. 326 is the number of seats that would allow a party to operate without support of anyone else. For the most part majorities have been common place. Neither of the two main parties the conservatives and later look likely to gain 280 seats. Aural of this means a coalition will be formed. Thats likely to be much harder for conservatives this time around than in 2010 with most of the other parties fed up with the main incumbent. Its possible that no coalition or alliance is formed in which case a minority government would result. It could well lead to the need for another earlier election. Either way the potential decline of the liberal democrats and rise of the u. K. Dependents and Scottish National parties drastically changed the u. K. Political landscape making the outcome hard to forecast. They still claim an absolute majority is in their sights the 2015 u. K. General election is the closest and most unpredictable for over 20 years and that is what makes it so exciting. Wilfred frost, cnbc 10 downing street. Its super exciting. Hes born for that world. U. K. Politics. Richard is still with us. 16 days to go. Its going to be close regardless. It does seem like the polls are changing on a day by day basis. What do you think is going to happen with regards to Market Reaction . I think were looking on an international stage. I wont go as far as to say its a side show but its an event and has less of an impact even though a damaging coalition would not do much for it but in terms of stock specifics youd probably look at it as being a better barometer of the u. K. Economy. But of course it tends to be a currency story in as much as whats it going to do to the u. K. Economic recovery depending on who gets into power of course. Why do you say it could be a side show . Because youre not the firstperson that said that. A lot of people are saying that and i find it curious because theres still a lot of uncertainties, especially if were to see a referendum for example which conservatives are opposing. Both could be detrimental to the business. Having said that in the round in terms of the ftse 100 at any given stage even as we were discussing today were talking about european earnings u. S. Earnings, the slow down in china. Whats going to happen with greece. There are so many global events that are going to have an impact on the ftse 100. Which would have a larger impact on markets . Grexit or if they push forward for britain to leave the eu . The brexit. I hope we can come up with a better word for that. But the market is obsessing for greeks now, for months i should say. The greece thing is punching above its weight. Its 2 of viewers own gdp. In normal circumstances it shouldnt have become the issue it has become but its the fears of contagion and a knock on effect and even in terms of the renegotiation of its debt. Its also the possibility of other countries coming to the table. I want to get your thoughts on the currency. The pound was at a one month high last week but how much Political Uncertainty do you need to factor in ahead of the general election . I think were up to events at the moment in as much as its increasingly looking like a coalition. That can change as we start to countdown and you can pretty much guarentee volatility on the back of that. Richard thank you for being with us. Happy birthday its the queens birthday today. Happy birthday. Her majestys 89 years old making her the oldest monarch in the world. Royal watchers are also firmly fixed on kate the dutchchess of cambridge as her baby is due in april. They would love if her daughter was born on the same day as the queens birthday. But then the pressure would be on. A fifth great grandchild could make an appearance early to coincide with this birthday. Incidentally, theyre speculating about what the royal baby will be named, the favorite names are alice and charlotte and if the baby is born today it could be elizabeth in honor of the queen. I have to say, at 89 the queen looks good. I want to know her secret . Is it flaxseed . What does she eat every day. I dont see her eating kale every day. But i think its a rich life with t los and lots of family. Four children 8 grand children director says she doesnt have to work. 4 great grand children and then again the fifth great grandchild is due any moment. Shes been on the thrown for 63 years and in november shell be the longest reigning monarch in british history. Shes also been married for 67 years. Can you imagine that . Thats three times my life. Anyway we want to hear from you. If you have a birthday message for the queen join the conversation or ask about markets as well. On email worldwide on cnbc. Com. Our personal twitter handles. You can see them on screen. You can find the show twitter handle as well. Is it time to buy greek bonds . We tell you how to play the greek crisis after this short break. Credit suisse shares slipping into the red. The outgoing ceo says its made big strides. I think