anna: japanese stocks as the yen falls. the peso in play. gainingippine currency ground after the outspoken and theroversial rodrigo claims presidential election. the swiss bank is said to record first quarter results among restructuring. we will have an interview with the ceo at 7:15 a.m. u.k. time. ♪ anna: welcome to the program.
i'm anna edwards in london. manus: a very good day. i'm manus cranny in dubai. they are going to guide lower for this year. they are adjusting their forecast. it will be at least $1.4 billion. the original guidance we have been expecting of 1.4 to 1.6. so this is a 1.9 new guidance. $1.4 billion. it is in a state of, well, i suppose change, challenge in the second quarter. the earnings came in at 326 million euros. they have beaten the second quarter adjusted number. they are cutting the full-year forecast. that is the critical message here. second-quarter sales also missed -- 9.8 5 million euro.
anna, it slides to 61 million. sorry, that is 61 million versus 38 million last year. it is an adjustment number which is the most critical issue. another red-hot headline is ing. we will talk to the cfo of a group later on. ing at $1.26 billion. the cfo of thyssenkrupp will join us. they will accelerate their think forward strategy. ing is very much in focus. anna: absolutely. the company is telling us their first quarter sales came at 5.33 billion euros ahead of the estimate. the net profit of 144 million.
key questions around the french business. how well has the french business has been performing? it is a big topic of conversation. what exposure do they have to the quick move in the pound they might see in the 23rd of june. we will be talking to them a little later on on the program. first-quarter net sales, 5.6 billion euros. that is under the estimate of 5.7 6 billion. the sector business -- they see headwinds in 2016. this is a business as of late. this is the first time we are getting the two companies reporting together. one of the big headaches this sector has been phasing of late has been carrier, telecom carriers wanting to spend less than previously. not doing quite so much spending now and that is one of the reasons why they have been
trying to do diversified. they are betting on this. newer products like internet protocol network and boosting nokie software and rnd capabilities. trying to fend off erickson. we are getting some interesting comments from nokia and ing this morning. manus: we are indeed. we will have that conversation with the ing cfo, patrick:. he joins flyn.nn. regulatory costs impacting business. more than 300 million euros. a lot to talk about. let's check in on the radar. we have a little bit of equity for your. 1.08-85.n, the yen against all eight currencies. the u.s. does not object to its
currency policy. the dollar-yen is very much a focus. they say it was natural for japan. crude dropping from 18 of 1%. 1/8 of 1%. you could go on but i will keep it simple. anna: it is a big japan story. japanese assets really bucking any other trends we see in asia and this is the second day in a does not how the u.s. subject to the japanese policy. all eyes on what is going on in canada, the canadian wildfire threat easing. it is a story you have been covering. let's get the first word news from rish. rish: fighting poverty will be a top priority as he claims victory in the 13th presidential election. a zero-tolerance approach
towards corruption and unguarded comments failed to damage his appeal captured about 39% of the vote. brazil has fallen into disarray. they vote to impeach president rousseff. the head of the senate said they will go ahead with the hearings. and thatken precedent rousseff was back on track. a database of more than 200,000 panamanian companies have been released. the database features information from millions of leaked documents from f onseka. they specialized secret companies including associates and relatives of heads of state like vladimir putin and david cameron. the massive wildfires that have
swept canada's energy hub of fort mcmurray has left 85% of the city intact. about 88,000 residents were evacuated. production from the oil was cut by about 100%. donald says chris christie will serve as the chairman of his transition into the white house. says heblican nominee is taking critical steps to gear up for the general election. global news each day and everyday. this is bloomberg news. you can find more by using our function. anna: thank you. let's see what is going on in asia. it is interesting to see the japanese asset really standing apart from the rest of the asia
story in the trading session, although that is because of the dollar strength as well. >> it really is. we saw the dollar rise on the speculation we could see two more rate hikes. that is put more pressure on the yen which has put more so on the nikkei. those gains in japan has helped the rest of the region which had a bit of a volatile start. we have seen the market in china really in and out of positive and negative territory. the cpi number coming out of china -- 2.3% in april year on year which is online with what the market was looking for. the number is still less than expected and we have seen some gains coming through. pricetory of the crude playing on energy sectors putting the han seng down. philippines coming back online after its election.
up by half of 1%. we are seeing the filipino peso rise against the dollar. earlier losses -- we have seen downward pressure on those energy and material players, but it is up by 4/10 of one present. the boost of japan is lifting the regional iindex. it is still in negative territory and that is now it's s 10th session of losses. a lot to show you some of the stocks we have been watching. 6.4%e out of china at six in april. it is listed in hong kong which is being sold off, but toyota has received a good boost in tokyo. commodity prices has been in quite a lot of -- this is
impacting the oil miners in sydney today. anna: thank you very much. manus? attention's turn our still to the part of the world. we will talk about china. consumer prices continue to rise. it was a healthy pace despite trading. narrowed morehat than expected. that go to stephen engle. i cut up with the chief global economist for s&p global and he said he didn't get some hard from these numbers. stephen: you have seen in the slowing economy, a firming of inflation. chinese officials, they hate and reflation. -- inflation. it is still well below the government target of 3% for the full year but it is at 3.3% for three straight months.
coming from a low of 1.3% in october. now at 2.3% for three straight months. commodity prices have come up. the prices have gone up and food prices are up. food was up 7.3%. pork up 7% from a year ago levels. that might even be a concern. the government tapping already into its strategic port reserves to meet demands. there is an inflation. but, on the other side, of the factory gate -- deflation persists for three straight years. 50 months in a row, four years and two months. it is narrowing. i think the commodity price rise has gone up and that has taken a little, increased the cost. deflation persists at the factory floor. anna: we will see how much that takes up in the commodity prices.
interesting commodities we have seen but we will see how that plays out. thank you very much. the ceo of adeco. the company revealed first earnings. he joins us on the phone. great to have you on the program. let's start with the numbers. looking at the detail of where your numbers have come through, beating estimates, singing you continue to see solid growth. update me on where you see the strength. alain: we are very happy with our results of the first quarter 2016. we continue to deliver modest growth at 4%. it is coming from countries like italy, liberia and france. france is continuing its recovery. and, we have also a positive
stability in our market like the u.s., germany, the u.k. and japan. all in all, very happy with these results and the continuation of this modest growth. anna: tell me a bit more about the french story. this is a big market for you. you have mentioned it has been recovering but slowly. are you seeing any pick up in the recovery speed? alain: no, it is slowly recovering. at 7% so it is not an explosive recovery. it is a continuous recovery. we see that in different segments. automotive being very strong. we now see the recovery of the construction and the construction is for france, as a country, but also as industry the first segment. slight improvement of
the situation which is good. and should also accelerate in the second half of the year because there are a lot of programs being built. anna: let me ask you about those subjects. do you see clients in the u.k. holding back on hiring even more than they were say a few months ago because of the looming vote? alain: regarding the brexit, we have a natural impact of this growing int uncertainty. of what we see is some customers are more uncertainty regarding the hiring of highly skills. the uncertainty is growing and will continue to grow in the direction of the 23rd of june, impact, just on
the hiring of highly skilled people. in to i just want to jump your conversation and bring our viewers and little bit of breaking news. a pretax loss for the group. quarter.the first it is 484 million. milliont loss, 302 swiss francs. they have obtained more than half. it has come up with to restructuring in the past five months. trade revenue is under pressure. this is a critical issue. they are revamping the credit more than half of its 1.4 billion swiss francs in terms of
cost cuts. sayseo of credit suisse they will meet or exceed its 1.7 billion cost. 2016, the target was 1.7. that is month five. there is a lesson for shareholders. i will handed back to you and you can have a quick look. anna: we will be speaking to the ceo in the next hour. he speaks to francine willaq cqua. alain, thank you so much for waiting patiently with us. it is great to get your thoughts on your company's performance. thank you so much, the ceo of adecco. up next, profits down 29% at ing. we will take a look at the numbers when we talked to the cfo, up next on "countdown."
the time now is 7:19 a.m. in london. . hihere is rishaad. rishaad: cost-cutting in the forecast of a minimum of 1.4 billion euros compared to 1.6 and 1.9 billion. they set a just and earning the end ofl be until march which fell 20% from a year ago to 326 million euros which beat estimates. cfo.re speaking to the china stock regulators could deter the flow of overseas trade which is seeking backdoor listings in the equity market according to people familiar. the chinese regulatory commission is weighing a
possible restriction on reverse mergers including cap evaluation. gm leading the pack in china when it comes to auto sales in april. last month, passenger vehicle delivery at over 60% with average discounts of 18% of the automakers recommended price, according to bank of america merrill lynch. have badst man will news out of brussels today. they will expect the 10 billion pound bid for o2 with the three networks to create britain's biggest mobile network. that is your bloomberg business flash. manus: thank you very much. let's get into ing. that he is reported the earnings this morning at 29%.
the weakness in financial markets divisions which has been driving the numbers. the cfo is joins us now. welcome to the show. profits drop and regulatory costs up more than 300 million euros. it is the bane of every bankers life. are we at peak regulatory costs? patrick: good morning and good to be on your show. i wish we could say we are at the peak of the costs, especially after having a 300 million increased year-over-year, the majority of which we booked in the first quarter. the three elements are in place. regulation and bank taxes. i hope it is only business growth. manus: what -- well done, by the way, on offloading -- you have a few quid, euros in the bank.
what you going to be? take me forward? patrick: well, we have a strategy for our bank which sent out to be one of the leaders in innovation, one of the leaders in putting digital banking first. we have a strategy which is growth. we are achieving significant levels of growth, even in the first quarter with 7 billion lending growth which is above the rate of last year. increasingly, we are doing that with an increase in interest market. our strategy is very fruit. we are pleased with the execution of the strategy. you have a 60% pay yet on your dividend. others are either not paying at all or perhaps under pressure. could you stick to a 60% share out? could you say what bank stock do i have to own?
can you stick to it? 65%ick: well, it is a progressive dividend policy. we don't have a payout ratio per se, but it is very healthy. we are committed to the strategy and achieve that last year and aim to commit to it. entirety of our profits this quarter to put it aside. we are fully committed to that strategy and the results will enable us to meet it. manus: i went to get under the hood slightly. i want to talk to about your reserve. are based on reserves. they are volatile as heck. my question to you is will you look at that loan book -- are you building up additional hedges? are you scaling back your
lending? are you going in were other people fear to tread? patrick: i mean, within our own business, we have reserved lending at 2.8 billion which is exposed to the oil price risk. we are senior lenders so we take collateral on our business. we rank ahead of more unsecured bonds. like our the book is stable. manus: no addiational provisions? patrick: maybe one or two but nothing significant. we have a stress test which we communicated before. we would only start to encounter material pressure on this if oil prices are sustainably below $30
a barrel. it is considerably above that right now. manus: we are right now. thank you very much for the contact. that is patrick flynn, the ing cfo. anna: thank you. just the recount what we have heard in the last 15 minutes. credit suisse, the second-largest bank in switzerland, a quarter one net loss -- 202 million francs. that is better than the estimate of the loss. they are talking about accelerating their cost saving programs to meet all targets and say 58% of their 22016 headcount has been made. in terms of the revenue side of the business, they said the remainder of the second quarter may show a tough environment and the levels of client activity and might persist into the second quarter like we heard recently. up next, we will talk about trade in the context of brexit.
anna: welcome back. the time is now 6:30 a.m. if you are watching in munich, we are watching for numbers to come in. the world's second-biggest insurance business. profits from that particular company has not hit the wires yet. manus? manus: i think credit suisse, i'm trying to debate whether the cost cuts of which they are ahead. 1.7 billion swiss francs kicked in. i was literally sweeting it out for you. billion versus a
smaller than expected loss. from a market perspective, we want to hear what the ceo has to say. it is going to be a tough quarter. lady that manages to get the news out of it. the net loss is 302 million swiss francs. suisse, 58%credit of the 2016 headcount reduction -- this is people in jobs -- that has already been made. those of the headlines. let's get across to rishaad. he has the first word. rishaad: taking a look at credit suisse with the second consecutive loss. switzerland's second-biggest bank with a loss in the end of march. a loss of 344 million.
you can catch our interview with the chief executive at 7:15 a.m. u.k. time. rodrigo saying fighting property will be his priority. it will include a zero-tolerance approach to crime and corruption. it is capturing around 39% of the vote. brazil's political system is under disarray with the new head of the lower house is vetoing the impeachment but they say they will go ahead with the ousting of the president. whicha drive to impeach is back on track after a day of chaos. a debate of more than 200,000 panamanian companies have been released in the international consortium of investigative journalists. millions of leaked documents
from a lawfirm. it sets of secret shell companies with clients including relatives and associates like vladimir putin and david cameron. the massive wildfires that swept through canada's energy hub of fort mcmurray left 85% of the city intact including the downtown. -- some partsews of the city completely leveled. 88,000 citizens have been evacuated from the area. it is cut by about 40% or one million barrels a day. donald trump announcing that chris christie will serve as chairman of his team planning his transition to the white house. the nominee says they have taken critical steps to gear up for the general election. the endorsement after dropping his own presidential bid. you each day every day with our 2400 journalists located around the world.
you can find our top stories on bloomberg. anna: thank you very much. we have got those numbers. the world's second largest reinsurers says they have guided lower on their profit since 2016. the 2016 profit at 2.3 billion. we have seen a range of 2.3 to 2.8 billion so they are coming in at the bottom and although that might not be a surprise to too many people because back in april, we heard from the management of the business that the 2.3 to 2.8 range was ambitious. they were at that time confident of a stable dividend so they have a confidence level for the business. a combined ratio of around 95% -- they have seen that at 98%. we are getting profit numbers for the first quarter as well. this is a business that is handing over the top management
position. the ceo is going to be taking over the top job and getting it over in april of next year. they have a bit of a transition. we will be speaking to the cfo at around 7:00 london time. a lot about the business. let's check in on the markets now. energy companies are falling in asia as oil hovers below $64 a barrel. becausetarting with oil we saw it give up its gains yesterday. it is holding near a two-week low today. the wildfires in canada, a shift in wins in cooler weather has limited damages to producers so they have begun the process of restarting operations. if we look at wti, it is at 33 3 a barrel.
attention is turning to u.s. crude data which comes out tomorrow. the expectations for an increase of 750,000 barrels and this is the purple line you were looking at. crude inventory in the u.s. at its highest since 1929. oil is coming up a bit from its gains yesterday so the impacts of commodity currencies has been downward. here i have highlighted the new zealand dollar which is the white line and the malaysian ringgit which is the blue line. it is gaining against the malaysian ringgit which is the worst performance among 31 major currencies today. the new zealand dollar falling for a third day. this is because the finance minister indicated he expects the country's's central bank to signal a plan on dealing with the housing market. the yen dropped today to the weakest level this month. japanese stocks rallying for a second day. it is weakening for a second day as well. theasian benchmark,
specific index, gaining as well. it is a raising earlier losses. emerging markets and currency. dayks falling for a seventh , extending its longest slump this year where the currency is falling for a sixth day, the longest losing streak since august. we have specific brazilian arkets alling over mixed-signal of the impeachment of the president. the shanghai composite had its worst to a loss in 10 weeks yesterday. the rally we saw in april looks like it is starting to unwind, but more broadly, there is more growth concern. anna: the dollar rebound since the start of the month. thank you. just over six weeks to go before the u.k. hold a referendum. we are joined this morning to discuss how british trade might be affected. debatesuests from the
but very different perspectives. from the former ceo of u.k. trade and investment and norton. ander,ide here is alex the high commissioner for new zealand for the united kingdom. thank you for joining us. andrew, you first. a lot has been set over recent days of what the tree dale deal of-- tree the eu could look like. give us your thoughts of what any kind of relationship between the eu and the rest of the u.k. would look like. timew: it will take a long and we will have a long period of uncertainty. the thing i have been most worried about is the turbulence, not just the days and weeks, but for months in the currency markets and with uncertainty about what trade arrangements will operate under. of course, nothing happens on
june 24 because britain is still a member of the european union. we still trade under the trade arrangements. skeptics and want to go straight towards the announcing our relationship with the european union and that will create uncertainty. even if wiser heads prevail and we stay in and we will use a lot of processes which has been set up. that sets up two years of negotiations. at the end of which, there is a precipice which britain falls off because europe could impose a new trading arrangement. immediate is turbulence and uncertainty in the markets. that is continuing along an acrimonious trade negotiation which ends up with britain having bad deals. anna: you have a lot of experience in doing deals with new zealand and the tpp which is
something you have been involved with extensively. these things take a long time to achieve, trade agreements. >> indeed. i was working with tpp back in the late 1990's. it took until last year to get an agreement finally signed off and it is not yet ratified. trade is the lifeblood of prosperity for people. that is the big worry. the uncertainty were brings a pullout of the eu. i have been following trade strategy for years and i think the current strategy trade for all amounts from the trade commissioners talking about, it is a very good strategy. focusing on services and the asia-pacific region were global growth has shifted to. at the moment, it has caused a lot of disruption were britain's a pullout. an interesting perspective because -- anna: you represent a country
because you deal with a larger country which is china. a trade deal with china which traded 11 times the amount of benefits to the new zealand economy then you would have expected. almost an argument that plays into the hands of that because there are many on the brexit that say if we leave, we have clarity of purpose and we can do more trade deals with china. zealand worked for years on getting into that trade agreement. it takes years to get those sort of things in place and certainly trade agreements do deliver far more analysis. in new zealand's case with china, 11 times more benefit than the analysts first predicted. that is why trade agreements are so important and that is why the uncertainty that were the u.k. to break out, the uncertainty of the trade agreements would create uncertainty.
andrew: he did negotiate a deal with china and new zealand has one. so does iceland. these are very imbalanced deals. trade negotiations are an emotional thing. there is no room for sentiments and the trade deal. the more powerful country, economy gets the better deal. withu look at china's deal switzerland, china gets complete access to the swiss market. the swiss get very little access to the chinese market. if britain were to go out to china and say we want to trade you with you, let's do it, we could have one. of course, but it would be imbalanced and britain would be the loser. anna: i'm sure you would not describe your deal as imbalanced. lockwood: we probably got more from china than new zealand. thatf the great things
trade liberalization does is not just open up the market, it is how open people's minds are two what is possible. do theland has had to hard stuff on trade. we did not have many options. anna: thanks, but no thanks. agreements ise people opening up to the world. anna: it is interesting what it does geopolitically. we had david cameron putting forward a very passionate case yesterday. rebuffed by boris johnson, of course, but says there are geopolitical reasons. international stability to stay in the eu. do you think trade plays a role? andrew: i think it plays an enormous part. when you trade with the country, you are less likely to fight with them. having a trade block like the european union also keeps the peace. the whole international geopolitical area is more stable
when you have a big block like europe able to negotiate on even terms with a big bloc like america and china. i think trade -- i completely agree with lockwood that trade opens minds and contributes to peace, but it works best when you have two big blocs setting the standards and trading with each other rather than a fragmented trade world. anna: do you think trade is up against -- free trade, the concept of it has been attacked by presidential hopefuls and the u.s. and other parts of the world. populist politicians criticizing the motivations behind free trade. >> it is a real worry. lockwood: growth and global trade has paused. we need to see progress.
when the tpp was signed, we need to see progress. i'm opal new zealand can negotiate a free trade negotiation. we are working towards that at the moment and we need to get some run on the board. the world needs to see trade agreements, trade liberalizing is not something that stops in its tracks. it is moving forward. it will give a big boost to the global economy. danger there is a real that if britain votes to leave it union, that will -- that could lead to an implosion of the european union. other countries saying we want to leave. the whole construction of europe would then go into reverse. i think that would be dangerous for world trade. it will lead to a constriction of trade. it will increase -- we don't want globalization. that will be bad for business and bad for stability.
anna: you have been working with a deal with the eu. how long will it last? lockwood: work is being done, pre-negotiations at the moment. i expect -- i think the pre-negotiation phase will be completed this year, i hope. i think it could move quite fast so long as we don't see the disruption of the u.k. pulling out. i have to say, new zealand values the role they play in the eu. the u.k. is a major player and brings tremendous value. anna: thank you very much for joining us to discuss this subject of trade in the brexit. largest germany's steelmaker grapples. we will be talking to the cfo after the company cuts its profit forecast, next. ♪
manus: it is 1:49 a.m. in new york. the futures at the bottom of your screen. if you had not had enough, mr. dudley is speaking at the beginning. more feds interpretation. good morning from dubai. let's go to hong kong where richart salaamit has your flash. rishaard: the profit dropped almost 30% in the financial markets division. 1.7 billion euros a year ago. lendor profit markets being squeezed as it calls interest rates at record lows and regulators pressed banks to bolster capital.
takata struggling to get ahead of its airbag recall crisis. without the loss u.s. automaker doubling recalls. the japan cell phone industry has made a deadline of the company to submit a comprehensive plan. it is due to come out with its results on wednesday. former morgan stanley chairman john mackin contributed to the departure of a chief executive. according to people familiar, mack did not know it was weighing on the investment so was not expected to disclose his holding. clube represented lending while failing to disclose his personal stake. that is the bloomberg business flash you. . manus: let's get the numbers.
it is germany's largest steelmaker. a cut its profit forecast to run minimum of 1.4 billion euros compared to a previous of 1.6 to 1.9 when it comes to grappling with issues. we now speak to the cfo for the company. it is guido kerkhoff. guido, looking at this guidance. the analysts are saying this is a bit of a shock. sinceprices have rallied february my quite a reasonable amount that you are cutting guidance. how worried should we be that this is the minimum guidance, 1.4 billion? guido: let me clearly say we are a diversified production. our business has given a solid performance. nevertheless, in the material business, we saw a high price in margin pressure. we have expected that's why we
gave up the guidance in the range. longer to realize it's a and we came down to lower levels. we currently do see a recovery, but please bear in mind, our financial year -- and of of september -- it comes a little late for us to bring our guidance of 1.6 to 1.9. it is not a shock for the market that we went down to at least 1.4. ityou look at the consensus, was something below 1.5. manus: not to look at reuters polls, we look at bloomberg polls. that get into your perspective -- let's get into the perspective. company theanced let's talk about the steel business. they saw a sentiment
improvement. would you concur with that? have we seen a flaw in the market? guido: yes, but it depends on the market. if you look at the u.s. or brazilian or worldwide export market. there is a sharper price uptick then europe. even in europe, we have seen increase in prices. manus: consolidation -- everybody calls for it and wants it. will you or what could you do to make this deal? everybody is talking about it. when will you do a deal and what will it take for you to do a deal? guido: i don't want to comment on speculation. been a we have long-standing company that said there is overcapacity driven by europe and china.
we would like to contribute. in the meantime, we do what we can. we are among the most profitable steel producers in europe. we have improved our conditions further. if there is an opportunity to participate in consolidation, we will take it into account. the will not increase speculation around that. once we have to say something, we will let you know. manus: this is quite difficult to say for an irish man who works for a company that is based in london. steelmise of the british business is nirvana for you, isn't it? guido: british steel has been underperforming for some time. manus: you need to take it out of the system, isn't it? come offpacity has to someday but it depends on where you compete and what market.
it is not so much in the u.k. the u.k. has not been selling into the u.k. so, therefore, there is not much overlap into the mainland of europe. manus: obviously, you have the other side of the business. the industrial side of the business. agreement.ew trade if we voted for brexit and had a trade deal with the united kingdom, would you support a very open trade deal with the united kingdom? guido: always. germany is exporting companies. we like free trade everywhere. we want to compete on par level. if we have a level playing field, we are always supportive of free-trade around the world. manus: very fair comment. thank you very much. short in terms of the questions. guido kerkhoff joining me on the phone from germany.
it is 7:00 here in london and 8:00 in germany. german industrial output is falling for the second month. there was an estimated drop of 0.2%. 1.3%.tual output fell so, this was worse than was predicted. this is going against what we heard on monday. from an industrial production is declining more than was expected thatrch, a second drop could signal slackening demand in the european economy. this dropped 1.3% from the prior month. economists in a bloomberg survey had predicted a 0.2% decline in this particularly volatile guage. this volatile data does not paint a consistent picture with
what we heard yesterday. it is interesting to see how the market will deal with all of that. easyjet is giving us their revenue numbers, 1.7 7 billion pounds in first-quarter revenue. it is just a little bit below estimates. they say they are well-placed to grow revenues and profits in this financial gear. they reported a pretax loss of 24 million pounds. it is not unusual for an airline to have this kind of loss. haverist attacks contributed to a euro-wide capacity glut. 89%. are talking about we are looking out for any further guidance. back in january, they talked about 708 million pounds.
will they reconfirm that figure today or give a different figure? what has been the impact of all those dreadful terror events. chiefo let you know, the executive of easyjet will be joining us for "on the move" at about 35 minutes from now. let's look at what the futures are telling us. we are expecting a slight boost to trading this morning. we have had quite a mixed bag from the asian equity session. the japanese market has been doing nicely, but that has not been the result for all of the equity markets. risk radarp the because that puts up the japanese story for you. japan is repeating its message that it is willing to intervene
in markets. he says the u.s. does not subject to japan's monetary policy. it is also an example of dollar strength. 225 is boosting stocks, up 2.1%. the yen drops exporters. fell 0.07%, and that is because of the canadian wildfires. let's get to hong kong for the bloomberg first world news. reporter: thanks, anna. a secondisse with consecutive loss. looking for a loss of 334 million pounds.
this prompted them to deepen cost cuts in the securities business. interviewe francine's with the credit suisse executive, coming up in 12 minutes. his platform included a zero tolerance approach to crime and corruption. he captured about 39% of the vote. the new head of the lower house annulled that body's vote to impeach resident dilma rousseff. the announcement by the senate head team seems to take president and suggested that rousseff was back on track. many shall companies have been released in the latest move by
the international consortium of investigative journalists. millions of documents relate from the law firm of a company that specializes in setting up secret shall companies. this involves david cameron and russian president vladimir putin . the massive wildfires that have swept through canada have leveled some of the neighborhoods. sidents wererei evacuated and one million barrels each day were lost from the output. chris christie will serve as chairman, planning his transition to the white house. criticald it is taking steps to get ready for the general election. chris christie made a surprise endorsement for trump in february after dropping his own presidential bid.
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: thank you, rishaad. let's get to japan now, where we are getting numbers from softbank. give an update to the markets, softbank said that fourth-quarter operating profits is coming in a 124.2 billion yen. they are basically missing their four year profit estimate, but are raising their dividends. this was against the next location of 576.5 billion yen. on the operating profit line, they are a touch above estimates, but not quite such a margin. yen, based around their argentinian unit.
this is an area of focus. they do not give a full year forecast, like many other japanese businesses. talk about the reporting season europe. in munich clarifying their guidance to the markets. thank you for joining us. you have said that your guidance is 2.3 billion euros. that is reduced from the range to $2.3 billion. you thought the previous range was ambitious. >> yes, we are quite confident that we will achieve it. the reason why we made it more precise, a more precise prognosis, is because when we gave the prognosis of 2.8 billion euros wiese
subtracted charges. now we take it in that that is the reason why we have moved it euros.billion it is an ambitious target, but it is feasible. anna: in april you also said that management said they were confident the dividend would be stable. what can you say about the dividend today? >> the basis for the dividend is the lower gap balance sheet and it is very good shape. in my mind, there are no doubt that we can continue with the current dividend, at least. anna: how strongly is munich re committed to ownership of the business? >> absolutely committed. we think that the integrated business model of primary insurance makes a lot of sense.
meanwhile, it has been copied by many other insurance groups. borderline, between the two is somewhat blurring. therefore, we believe in it and we are committed to it. of theood the costs restructuring get any higher from here? >> it is not definite at the expect that there will be a lot of investments, which will give us good prospects for the future and it is worth the price, i would say. anna: we have seen a lot of volatility in the first quarter and we know what that has done to your investments. alliance did not have to write off what you did, one of your competitors. what sets you two apart? >> the difference is the kind of books they run. the reason for these
impairments, last year it was dominated by very volatile markets and we changed our position and also, some stocks from one to the other. therefore, we had relatively high use for some positions. that was the reason for these impairments. anna: joerg schneider, the cfo from munich re joining us on the phone. a next credit suisse posts second straight loss. ♪
second loss. says subdued market positions my continue for a while. francine has been speaking to the cfo at the business, tidjane thiam. francine: good morning. a good set of results? >> we are pleased with the results. if you look at what we are trying to achieve, the group of divisions, for example, switzerland and asia pacific a very good quarter with strong inflows and stable or increasing margins. which means, not only did we grow, but we have a very good quality. so, that is very pleasing. altogether, we generated one billion swiss francs, which is a big number. i don't think we will get worse conditions in q1. we are on a 4 billion swiss
francs trajectory. that does not seem so crazy anymore. so, that is pleasing. the global market restructuring has enhanced at a progressive pace. we already have $267 million u.s. of savings. our loss was exacerbated. maximum loss is 50% of what it was, which is a very pleasing result. and ibcm is a great spot for the investment banking capital market. so, we have gained market share. we are up in revenue. we are now number four in the american mma.
all of that is very good. last but not least, the capital position has been preserved at the 11.4 ratio. few weeks ago that we had labor. we have been able to show in his quarter that in spite of the $1 billion,t half we are still going. are preparing how? 16%. went from 14% to this company has been able to increase revenue, decrease costs, and increase profits by 12%. confidentso, you are that you can raise capital by other ways? >> we are confident that we are
in a good position. we always have to caveat that by saying, if everything goes to plan. we are now in a good position. remember that we came from 10.001%. francine: what does that mean for your dividends? >> we said we would have a script for two years and we aimed to distribute 40% of the free cash flow, which we are still going forward with. we have very attractive investment properties. this quarter asia and 24% in international management. 16% in switzerland. in a country where entry rates are negative, 16% is very good. is in asia is very good, as
24% in the international scheme. return asy keen to much cash as possible, but it is important that we continue to invest in what is very attractive. francine: so, that will not takeaways from the capital? >> yes, we can do both. the prices today, it is relatively reduced. there was a time in january or february were that thhere that t the case. march is better than february and april is better than march and in may, we are seeing some positive signs. we still remain cautious in terms of outlook. sentiment feels fragile. francine: is it less volatile than what you were expecting? >> we don't want to make predictions, but the market is
very sensitive. there is not much liquidity. triggers a lot of volatility. francine: so, it is not easy to make money in the markets? >> no, but we have seen improvement from january and february. we are quite strong, up 16%. there are spots where we see strength, but then there are areas where we see weaker global growth. things move around a lot. francine: you had 6000 job cuts this year. >> that was a target and we had done 3500. 58% into the target as of the first quarter, which we
think is progressing on target. we believe we have already done more than half of our net savings. we are confident we will meet the target. always sorry to have to talk about job losses, but it is a price we have to pay to create the platform that we want for the future. we don't believe in the boom and bust model with great years in terrible years. to be successful we need a strong capital base. we need relatively stable in come streams, so not too volatile. and a something maybe we don't talk about enough, but good business conduct, good compliance, healthy growth. we need to protect the reputation of the bank, which is our most precious asset.
first of all, our shareholders will say, no, we really think about serving our clients and making sure they are happy. just to give you a concrete example, i always talk about the connection between the private bank and the investment bank. we need 4.2 billion in asia for the first quarter. people say, why don't you talk to the private bankers? we really believe in that model. we believe it works. we believe the numbers show that it works. and the potential long-term is huge and we have stable, high quality earnings. say you dispose of assets that are not immediately connected to the core basis. >> yes.
saw some peripheral activities. we are concentrating on switzerland. you are always working toward the 11% to 12% target, barring any major litigation. what kind of litigation are you worried about? >> you saw in our report we were quite extensive on where we stand in terms of litigation. the main one is the case, that we cannot comment on. we think 11.4% is a comfortable position. we are the middle of the european peers, and that is where we want to be. sitting at the bottom is uncomfortable and we had to get out of there. francine: are you happy with
your liquid assets? >> yes, and the team is very happy. 1.3 billion credit assests for a cost of $11 billion, that is good. francine: january and february, those were tough for you. >> yes, but i am pleased that things are progressing. people can see from those numbers, the quality of infos, the margins, the availability of the divisions, the strategy. we have very unfavorable circumstances. i think we have a great team. i am impressed every day by what they are doing and i think there is more to come. francine: so, the worst is
behind you, or it is too soon? >> i am too superstitious. i would never say that. that i believe we have the right team to cope with the circumstances, whether they are good or bad. we showed you in the first quarter, which was a very challenging quarter, that the team held together and produced very good results. have so many risks in the world economy, such as the brexit and what is going on in china. >> i have always been in the same camp, which is to be positive on china. i feel there are a lot of misunderstandings. but that is the objective of the economy elli policy. you see a lot of bright spots. 104 million chinese travel the world last year and they spent $200 billion abroad. that is more than the gdp of
many countries. that is a growth industry for china. there is also tourism into china, which is huge. there is entertainment, the movie industry. there are many theaters in china. francine: they continue to purchase more. >> exactly, and their ire is the auto sector, and housing, and health care, which is also huge. i'm just going from the examples, but there is a name for all of these services. they are a very consumer driven group. it is people going to hospital and getting good quality health care, going to cinemas, and going abroad. you have a two speed economy in china, an old
economy. people don't see enough of how a dynamic they are. francine: are you worried about the brexit, or the fed raising rates before the markets are ready? >> we are always concerned. you spend a lot of time thinking about the brexit. we have a brexit working group and we will be ready, whatever the outcome is. and the interest rates, we always think about that and we have to prepare for that. but i think there is still growth in the world economy. i think europe is better than it was. opened up ands. down, but is still green. i still think the market is ok, but it varies of course. the political risk -- around oil and saudi arabia, and the
migration of crisis in europe, that can trigger unexpected results in elections. but i think that is the way of the world. francine: what is your plan "b" for brexit, if it happens? >> we are not ready yet to discuss that publicly, but i think we will cope. we have to cope. francine: thank you so much. tidjane thiam talking to francine there about what they will do in the future. you are now watching "on the move." it is 7:28 in london and 8:28 in berlin. we are 31 minutes away from the market open. i'm guy johnson and i'm sitting next to caroline hyde. as we have been hearing, it is "cut, cut, cut" for credit
suisse. q2 is looking subdued. eeasy jet revenue came in below estimates. we will be speaking with ceo carolyn mccall shortly. and miners are in a hole. ware we heading back to those january lows? as i say, we are not 30 minutes away from the european open. going to takeopen us? let me take you to the bloomberg and show you where the fair value calculations point this morning. it looks like we will be a positive start in europe. the euro stocks is up by .6%. the with the 100 is up by .5%. by .5%.tse 100 is up it looks like the dax is going
to outperform. i want to show you this as well. these are the future is out of singapore. this is a year chart. we have been sliding lower, but this morning we are trading at 51. the mining sector this morning, it will be an interesting one to see how londo opens off the back of big losses in australia. caroline: we have seen big losses continuing through the hang seng as well. we have been on track for the seventh day of losses, the longest losing streak this year. suddenly inching into the green territory. maybe we are just getting a little bit of a boost, but overall, we have seen a green sentiment in asia. of course, the yen is weakening, helping the japanese stocks. and oil is up .4%, a little bit of a reprieve from