european leaders are set to discuss more penalties for russia. paying him more than a two-point billion-dollar fine. we will speak to the ceo. john kerry is in cairo seeking to end the bloodshed as the bochum to thents.

program. joined by mark orton and caroline hyde. -- mark barton and caroline hyde. was, iteal that never did not go ahead with its merger. we got second-quarter figures of how this company is dealing on its own. it could be a troubled second-quarter. there is concern as to how sales is progressing. that makes andny designs the chips. >> i am not feeling smart enough

already. at 2 a.m. wake-up call. i am not talking about stephen jerod or english cricket. i will be talking about ig group which is the largest spread betting firm. it has a market cap of 2.1 billion pounds. --res are down seven percent 7%. may the training had been subdued since march. low volatility, we know how important volatility is to the spread betting firms. a big spike in volatility. vix index spiked. an increase to see

of eventsity because in gaza. we will see -- talk about the results. ministers are arriving in brussels. what can we expect? nice it is toow have mark back? relaxing he had such a vacation. there is a sense today that the sanctions might not be quite as juste as we thought yesterday. there is a few reasons for that. there has been progress on the ground and ukraine. 282e are means of 202 --

people were loaded onto refrigerated train cars. the train has left the station at the crash site. it is on the way to a city controlled by the government. the remains will be loaded onto a plane and taken back to the no inference -- the netherlands. that is somewhat comforting news for the families waiting with the exception of the 16. the rebels have also agreed to give more access to the site. this is something that western countries were looking for and toking to president putin use his influence on the rubble to achieve. the second thing is yesterday with great fanfare the two black boxes were handed over to

authorities. they appear to be in more or less good shape. the second reason why you might not see huge sanctions today as we understand the dutch and remember what hundred 93 dutch citizens were killed on that they are set to get more aggressive with sanctions. that is something that few countries can understand. that is something we're watching. economic the standing concerns. this may hurt them at home just as they are trying to recover and there are a economy may be too weak to sustain any kind of retaliation should the russians do that. >> what do european countries have a stake in, the dutch will

be taking the lead role. throughout this day they have big ties economically with russia. what is at stake here? list.many tops the germany had 6000 companies in russia. when it comesse to russia. the netherlands is second with half that much trade. that might be a bit skewed because a lot of russian companies are incorporated in the netherlands. obviously a significant amount of trade. it illustrates the conundrum the dutch are in given the fact that some the citizens are -- were killed in this crash.

this is some of the issues and the french are in the middle of two mistral helicopters. one of those carriers has already been built and paid for. the russians are training on it and france and it is supposed to be delivered in october. president hollande said that would go ahead but if the eu does ratchet up sanctions he is prepared to say goodbye to the sale of these second -- the sale of the second warship. that would -- there is a lot at stake. most of the countries have said they are prepared to pay the

price. there was already an eu meeting scheduled. if it does not happen today we will have to keep watching this att's have a look credit suisse. the second biggest bank posted the second biggest lost -- loss. though net loss is more than has been estimated. what are the takeaways? >> that is net new money.

30% of the revenue in terms of bringing money in. this was an investigation which was ongoing. this is one of the issues we will talk about. exiting the commodity business so we will have a discussion on that.

there are historical issues dealt with. some pretty substantial questions. forward to that. >> john kerry arrived in cairo last night. elliott gotkine is live in tel aviv. do you think john kerry will be able to broker a cease-fire? he would not come to the

region if he did not think he could have some impact in recurring this truce. only offer on the the table is the same as last week. the egyptian-sponsored cease-fire. make thes needs to decision to spare innocent civilians from this violence. hamas is saying not only do we want the border crossings to and from gaza, we want them open and we want the prisoners, the members of thomas that were rounded up when israel was looking for the suspected murderers. hamas is tofor accept the same reject -- offer they rejected last week.

so it is hard to see how they could accept the same deal now that they rejected last week when they had not achieved anything. >> the fighting continues. what is the impact on israel's airline industry? from eld a statement al. saying third-quarter revenues could be hit by of $250 million. not just people canceling their reservations. not just people who are not going to be coming to israel. is really seemed to be staying at home as well. it is a reasonable chunk. people who cancel -- there allowed to change their flight without any penalty. ikea is not listed.

minister comparing to hitler.low sees and the foreign minister -- [indiscernible] >> we will speak to a former deputy head of the national is really sturdy counsel and says israel will not withdraw from gaza until hamas stops firing rockets. the break, a unanimous backs nations as russia the resolution for a safe investigation. is this enough to escape stricter sanctions? that is next.

x welcome back to "countdown.: >> no resolution had russia used its leverage on thursday. or on friday or saturday or even yesterday. powert was samantha speaking in new york.

unanimously calling for impeded -- unimpeded access. international investigation can begin. leaders will meet to discuss europe's response to the crash which could result in more sanctions against russia. good to see you. do you expect to see further sanctions, and where will they fall question mark what is on the agenda? it is only a meeting of take a decision to extend sanctions in this way. accelerated. what some of the leaders are going to want is a anyodical process where

proof of russian involvement or proof that russia could have stopped it -- one of the things the prime minister is famous for is being methodical. back theing to keep degree of public anger. will takech leadership year. will the rest of the eu back the netherlands? >> if the dutch take this moral leadership. germany is in a quandary about what it does. lots of reports that german companies are worried about what might come down the road. the uk has its problems in the financial sector.

cameron and george osborne were saying the time has come to introduce some sanctions> . >> level 3 sanctions are still way off. threaten -- go halfway before you can get there. >> what are you expecting this week, will it be targeted at individuals, will we see holland -- will that be called on by france? to keepove is underway this where it is. i think it might be too late to stop the first one. tohink they are not want harm themselves. >> that is something that was

talked about over the weekend. the u.k. foreign secretary saying there was an appetite to take some pain if it was going to result in a change of direction. france is not going to want to [inaudible] roade moment we are on the where there is something that has to convince it. this replaced the debt crisis as the next worry for the eurozone? think the prospect of an financialck if services crashes or of gas sanctions command.

those replace the dead prices is the big problem. l russia respond? >> that is never the most predictable thing. russia is not enamored of being so closely associated with this. so far it seems to be playing it fairly straight. knocking any accusations way and not really engaging. i would not expect a change in that. >> thank you for joining us. omnicomp, after the the fell through, back to drawing board. what next from the advertising giant? more after the break. ♪

is reviving its strategy. as the successor. we are getting numbers and publicis. the merger did not come off.

many feeling very pessimistic about what the second quarter will bring. blicis redefinepu itself. they will be reassiessing its strategy going forward. closely improving and the economy is improving. this business has to do with the number of headwinds. you mentioned the falling apart of this merger. you mentioned some areas that are picking up. expansion --oing you are bringing the money home and the euro is so strong that will be -- not be adding to the bottom line.

we will be able to separate what they've industry is suffering and the specific story. >> this is a company that is having to change to a completely different environment. perhaps they have not got their ducks in a row. there is a larger corporate that was going to tackle these changes. this is why they promised this big overall. this is going to be a slow burn. >> defaulting before even getting married. >> they were going to be a merger of true equals.

back as agente tries to negotiate a cease-fire the only way to [inaudible] our guest is next. ♪

x welcome back. let's get to the fx check. uk on one side and the french. but could be interesting that debate on ending military exports and further sanctions against the country not really having an impact. the impact has been marginal.

at least in the fx market. as the dollar index is at a high. has reading of inflation come above two percent. 2.1%. the highest since may. tos market is very sensitive emerging inflationary pressures. >> european union finance ministers meet in brussels later to discuss further sanctions against russia following the crash of malaysian air flight mh 17. the u.s. imposed sanctions on russian banks, military, and energy companies including the largest company rosneft. hitns injured after being

by israeli tank fire. john kerry is in cairo. says.s. secretary of state more must be done to protect the lives of noncombatants. country would stand by while rockets are attacking it and tunnels are doug to come into your country and to sell your people. but always in any kind of conflict there is a concern about civilians. to declarea is set an official president. this after leading the count. neck.showed them neck and police and politicians calling for calm.

are getting those numbers from publicis. euros.illion up 5% if you are stripping out currency effects. up 0.2% if you are factoring into account the strength of the euro. they are saying that there were cancellations. the second quarter has not lived up to expectations. they are not satisfactory but a company's own standards. count -- there is a pick up in revenue but emerging countries are saying they are sayinged about the -- that they are extremely cautious about [indiscernible] merger withmake a

omnicom failed. world's have been the largest advertising company. it does look like foreign currency -- companies are not willing to spend as much. they say they need to tackle these problems quicker than had originally expected. 2014 will be difficult for strategic review. the analysts had braced themselves that the second quarter would not be pretty. the third quarter the click it will pick up. -- looks like it will pick up. >> let's get back to one of our top stories. the attempts to rocher sees file -- rocher a cease-fire. fire.ker a cease terms must include the release

of prisoners. our guest joins us from our tel aviv office. thanks for coming to talk to us. hamas is saying they were not sufficiently consulted and that is one of the reasons they do not want to accept it. >> i think, sis responsible for this round of violence. they tried to use this aggression to promote the interests of the organization. unfortunately we know that the relations between hamas and egypt are not so good. egypt designated hamas as a terror organization. there are difficulties in this

kind of negotiation. realisticat the only repose little on the table is helpgyptian one and they hamas will be convinced by the situation to come to the negotiation table to stop the attacks on israel and return to the kind of calm. want to see athe listing on some of the curbs on gaza. they want to see the release of some palestinian prisoners. do you get a sense that israel will be able to say yes to any or part of those demands? >> i think that it is impossible to do anything under a barrage of rockets. the step should be to stop the fire and then we can negotiate at the negotiation table with the help of egypt and the help

of the united states and i hope that we will reach an agreement that will be satisfactory for israel. >> benjamin netanyahu has been saying that the aim of this most recent ground approaches to restore quiet for an extended time. does more negotiation need to happen to restore quiet? >> a think that the point is that we are already in the third hamas.f violence with it is not in the israeli interest. we have to see that the end of this operation, it is not just to return to a kind of calm for a certain time. solution to my how to disarm hamas in order to

prevent the next round. we have to take in consideration that hamas is attacking israel strategic assets. the rockets and the tunnels they tried to use in order to infiltrate into the territory of israel. these security challenges have to be solved before any future agreement. >> with death tolls on the palestinian side over 570, what are the israelis doing to limit casualties amongst the civilian bystanders. i am thinking about the attack on the hospital that happened within the last 24 hours. findthink that you cannot thatxample in the history armed forces are doing more to prevent civilian casualties.

israelis arethe doing almost everything that can be done. -- theretely, hamas is using the local population as their human shield. when it comes to fighting in densely populated built-up areas, losses unfortunately are unavoidable. i believe that israel is doing the best to prevent it. >> do you have proof that thomas is using people as a human using peopleas is as a human shield? excavation is they do not want to abandon the place they live. knowninhink it is well that before the attacks israel

used different means including sms and phone calls to ask them to leave the area that is going to become a battlefield. forced them to remain. the responsibility for the results is on hamas and not israel. >> thank you for joining us today. joining us from the interdisciplinary center where he is director of studies. thomastry to contact -- thomas -- hamas for comment but there was no answer. netflix's behind streaming success?

that is next. ♪

>> teaming up with india's biggest commerce operator to

phone.e new to deliver an fivefold boost in sales. paying more thatn -- more than $3 million for the san francisco based startup. it helps developers better understand their audiences. netflix, the world's biggest online subscription service has increased subscriptions to over 50 million users. net income more than doubled to $71 million. "orange is the new black" became program watched topping "house of cards." it is the new black.

i liked the effect of the world cup on netflix sales. hurt by people not wanting to get onto netflix. this time around people have boughtt and ought -- linked televisions. it is interesting to see how that's hundred dynamic and shift things. brazil has been a big focus around the world cup. expansion, 60 million households in europe with fast internet. >> they see a $42 million loss outside the u.s. in the current order. thislost 15 million in

quarter but it is all about investing overseas. they want to rip the rewards. >> they say it is ok to lose money. >> content is still king. everyone wants to know what else they are bringing. orange is the new black" is bigger than "house of cards." saginaw was a jail, county jail. they have apparently changed the outfits that their prisoners where from orange because it was becoming too cool. they are black-and-white. .> look at the actress schillings. indonesia opening a new

chapter. early tallies with the governor of jakarta in the lead. what is the list -- latest from the election commission? hashe election commission provinces.3 predicting the commission will delay announcement until midnight to avoid unnecessary demonstrations. the possibility to announce the result on schedule which is going to be at 4 p.m. local time is getting bigger. four provinces will have to be counted. moment the process is still counting two provinces. the last two will have a tough call especially east djokovic has 30 million eligible voters.

provinces -- leading with 42% and the opponent trailing behind. of 65%.with the data the opponent disputing the numbers. ifwould launch a challenge the team finds unfairness. there have been allegations of cheating and a request for more revotes at police stations. foodt's turn to the

industry. international food chains have confirmed they did business with a local food producer in china. they are being investigated for cutting corners. bring us up-to-date. >> good morning. papave burger king and third company saying they would not use the meat anymore. ive companies. saturday.ed on there was a massive concern because you have the chinese fda, the fda investigating any shanghait that uses a company. -- the breached

questions are being asked, if they had not checked, the provinces range around china. mcdonald's citing one of its sources which would not be named. 2000 restaurants will be shut down because of this. that is a concern. mcdonald's, kfc, burger king, the three major names, all those .topped using the meat this is one huge source of meat for the fast food chains. >> thank you. the story from hong kong. "countdown" continues after a short rate. bringing you his take on the bank's record loss in a bloomberg interview.

stay with us. ♪

>> an hour away from the start of european trading. -- how on the back of

yourfaith do you have on children's abilities? 's father betoy on his success. ones a bit niche but it is that is on the rise. one.take more bets on this lots of families put money on whether their child will be a sporting hero or prime minister. >> what bets when you put on your children? >> my daughter, the queen of

dribbles. the liverpool football player has quit. he is 34. playmatt pride will not international cricket because of his injuries. many think that means he will never play for the team again. alastair cook is not quitting. he is the indian -- the english cricket captain. england lost to india for the first time before i was born. combing you were busy

legos fell a tank of off during a storm. five million pieces. crazy tryinggone to find them. >> get out there. to speedng gears up with the headlines. european leaders are said to discuss penalties against russia. loss. suisse's big after paying a big fine. we will be speaking to the ceo, dougan.an -- brady

♪ there are the top stories. had a troubled time. they were teaming up with omnicom. they could not come to grips with who should be running the company. second-quarter sales down 1.5%. that is being blamed on the strength of the euro. aboutere cautious prospects. they are still saying campaigns are being delayed. clearly a concern. out -- 95% of mobile

phones have a design but royalties are slowing down. less royalties are coming. what about connected devices, what about smart watches? about have been thinking low volatility. the company releases for years -- for your results in a matter of minutes. trading has been generally subdued since march. activeto know how many -- what are they betting on?

they offer markets and indices shares. >> we have heard from the u.k. government about where they think concessions should be made and we heard from the french government about how they could sell mistralo not helicopter carriers. we will talk to ryan about that. that was the suggestion that a number of the foreign thesters are saying that debt should be taking the lead here. lland should be taking

the lead. manus cranny has made his way to switzerland. >> there is an impact from the settlement process. ofhad a billion eight pretax, that is a nine percent and pretty strong customer inflows. you look at our capital for aggression we got to 5.9% so we are well on our way to the percentage we would be at. a pretty solid progress in what was a difficult process that had

impact on our business. thank customers for their the behaviorg that is something you regret. 2.6 billion dollars. we use are priced at the size of the fine? >> obviously this has in a long-running issue for us. these are events that happened a long time ago. we have been spending a lot of time fixing this business and cleaning it up and we spent a long time working through the resolution. sweep ofa very long time for an issue like this. where we ended up was a very significant fine, a significant impact create getting at -- getting it behind us was important. this was our biggest litigation or regulatory issue out there so getting it resolved is something that was important. aboutre was an article

your tenure at the bank. he calls you the teflon man. u.s. the ceo, you are still standing. there is a guilty plea. there is a fine. do you feel that you personally should take more responsibility for what has happened question mark -- happened? >> these were issues that were not created on my watch. this management team worked very hard to resolve the issues. we had an honorable resolution. we did not require any emergency law from the swiss government. we did not break swiss law and reaching this agreement. frankly it has been the single issue that has taken the most time for this management team over the past year to resolve. it was important to get a resolution for the bank and i think we did that and we did so honorably. i feel very good about that and i want to do what is in the best interest of our employees, clients, shareholders, and that is what i plan to do going

forward. you continue in the role absolutely focused, that is your intention? we have a lot to do. we have a good future in driving the strategy. i think we are doing a great job for our clients. we will be able to do -- do a good job so i feel enthusiastic. >> from a governance point of view, what will we see coming from the board? what have you learned over the process of this investigation that needs to change to make sure this kind of incident does not creep in again? >> it is one of the things i think has been one of the most important focus is for us for many years is making sure that we're running a very compliant business. if you look at our record on a number of these areas we have a pretty good record. we have not had any issues on the libor site.

we do not have material issues on the fx side. we have continued to work very hard to run a compliant business. that is an everyday challenge. that is something you have to work at and try to tackle every single day. we have had a pretty good record of that. that is something we will continue to be focused on. it is in the best interest of our clients and the right thing for the shareholders. we have to run a very compliant business. >> investment banking, could it be the quarter where everyone has had a slightly better run including yourself. we are five years into this slump. one quarter where the numbers beat estimates does not necessarily change the direction. are we going to see much more substantial reduction, where are we in that cycle? >> from a credit suisse point of view we have taken significant steps to evolve our business on the investment banking side. we created a capital efficient approach to the investment

tanking business and if you look at the amount of capital we have we have -- it is a model that is very efficient. we have done quite a lot. you can see the environment continues to evolve. the regulatory environment evolves and even this quarter we announced some additional changes in our macro business. exiting oddities, changes to the to make us more effective and driving high returns for shareholders. i think we're ahead of the curve. the industry has further to go in terms of adapting to the regulatory and the market environment. >> the u.s. has implemented some sanctions against russia. thepe discusses how sanctions will affect credit suisse. you?is the impact for >> the biggest impact has been the general impact on markets and on peoples attitudes toward

investing and how opportunistic they are. these geopolitical issues have had a pretty big effect on the markets this year. for the most part of this year. in cs?the business global, manyss is of the martian markets. the impact on the business and that part of the world has an impact but it is relatively small. >> what about doing business for the rich russians, the wealthy russians on the management side? is there risk with doing business with wealthy russians? we take a conservative approach to doing our business everywhere. that applies equally to business in russia and elsewhere. we will continue to have that approach.

barclays -- pain could be your gain? as barclays sees their volume drop? >> a lot of the electronic trading systems are good for the markets and if you'd talk to institutional or retail investors you are able to institute things at levels and with an ease that was not possible 10 years ago so there are a lot of good things there. they have been abuses of the system. we worked hard to ensure that those abuses are durban out of the system. we worked hard on that. we will see how it develops over time. we continue to work closely with regulators on making sure that market is structured in a way that provides a fair playing field for everybody. more breaking news for you. earnings from the world's leading semi conductor ip supply . holdings.

looks like it is in line. 17% increase in the second quarter sales. 16% for the first half of the year. it seems to be licensed design that is bringing in the money. up 42% year on year. are half of their business. selling the original idea of the design. licensing that design to a company such as apple and mobile phone device makers out there. this is where this company is focusing on new designs they say have been ramping up. clearly lesser being used in the grants game of things. -- grand scheme of things. how much are they employing this chip, how much the samsung -- does samsung use an arm chip?w

we have seen a decrease in -- royalties. they have sold 41 since is in the second quarter taking them up to 1100 licenses that have been signed. the growth is there for new types of devices. we have our thermostats connected to the internet. you have cookery equipment connected to the internet and a smart watch. all these need tiny, powerful chips and they need new designs. this is where arm is taking a lead. ramping up in terms of license designs and their margins so their profitability has been improving. they are sounding pretty buoyant about their second half of the year. thehere was talk about industrial internet. the internet of things in

the home but in an industrial setting. engine manufacturers talking about putting all kinds of monitoring equipment on different parts of the engine. this really big theme in industry getting away from the home. >> investor said rolls-royce is internet ofknown things company. group.s get to ig >> another record year for the group. profitability having increased every year since our public listing in 2005. i will be speaking to the chief executive in a few minutes time. pretax profit has risen up 1.3% to 194 .7 million pounds. point 4ing is up to 373

million pounds. the company said it is a good for your result despite a subdued backdrop at the end of last year. what is the backdrop like right now, the final dividend is up, and has strong progress on its strategic growth initiatives as well. we will be speaking to the ceo in a minute or two. .> everything was going great clearly a good mood is not great for great revenue. >> i will be speaking to the ceo in a matter of minutes. about the full-year results which has just crossed the terminal. stay with us. ♪

next time for today's company news. posted a loss. operating profit fell which missed analyst estimates.

buy cataluniao bank. are selling off their banks timeanking assets. warner's word eliminated a shareholderst lets call a special meeting. the move is seen as time warner's first concrete step to sending off the unwanted takeover offer. we are getting live pictures from brussels where european foreign ministers are arriving for a summit. this is the arrivals area. you can see the international media gathered there.

the eu foreign-policy chief has already spoken. she has talked about how there are -- [inaudible] broncoying they expect a -- a strong debate on possible new sanctions. the eu had been determined in its conversations about putin. we will bring you more as it develops. spread betting firm just releasing its results. joining me is the chief executive. 1.3%. profit up by profitding revenue up. is rising every year.

how have you managed it this year? strong growth on from our european businesses. we have been in continental europe for six or seven years. we're still growing strongly. >> do you think that sort of growth is sustainable in those countries, and those geographies? >> i do. if you compare those businesses to our u.k. business and they are a fraction of the size. we see no reason we cannot build a business on a similar scale to what we built in the u.k. >> how are those countries faring and regions faring? >> they have slightly -- a slightly difficult year. they are dependent on forex

trading and markets. we have seen 25 year lows in market volatility. >> and the golden question is when i have been posing to my colleagues. do you think volatility is going to pick up not only within the fx market but some of the other main asset classes? >> it is inevitable that it will at some time. the challenge is predicting whether that is tomorrow or in three months or six months time. it is inevitable that volatility has to come off the current lows. >> the central bank is suppressing volatility but now the bank of england is going to raise rates sooner rather than later. the fed will have to raise rates. could you hazard a guess, are we talking about the second half of up. >>r, that might pick you have got the tapering of qe

in the u.s. pretty much done and that has been a big suppressor of volatility. and some prospective interest rates although that is not clear when those will be. be a markedt to increase in volatility. >> you offer a huge range of markets including indices shares. what are your clients betting on right now? equity is the main indices. they are trading on the ftse, dow, and dax. you tried to become the default choice. you are trying to broaden the business offering particularly within technology, within mobile

and your expanding geographically. tell us how that strategy is progressing right now. >> the biggest change coming up is where about to go into stockbroking which we will launch in the u.k. in september. we have a good offering for trading in shares but at the moment only using [inaudible] we are applying excellent technology and applying it to the stock roping product which we think will be popular. i do not think it gives us a good way of engaging with a much broader audience that might not be that familiar. >> what is the biggest worry right now, what is the biggest fear right now? like always we would markets to be more volatile. it is inevitable that will happen at some stage. chat to you.

we will speak to you soon. after the break these are live pictures of leaders arriving in i am in brussels to the skies with their options are. that is next.

>> welcome back. eu foreign ministers are meeting in brussels. they should start arriving, they have started to arrive. the first topic is further sanctions against russia. is on the ground. what are we expecting today? good morning. we expect to see some sanctions, perhaps not as severe as the tough talk yesterday suggested. we do expect foreign ministers to do something. leaders started to quietly manage expectations. we had progress on the ground. of 298 people 202 killed on mh flight 17 have begun their way home. they were loaded into refrigerated rail cars and they are on their way to a city controlled by ukraine's central

government. that is something that will provide small comfort, some comfort to the families waiting for them. that is also something that the eu leaders were hoping president putin would intervene on using his influence. boxese the two lakh transferred to malaysian authorities. that is something that eu leaders were pushing for and we will be happy to see as an happens. we understand that the dutch and they had 193 people killed in that crash, they are concerned about getting to aggressive with russia and the insurgents before all the bodies have been removed. there is the long-standing concerns about what this might mean for the european economy. we do expect them to do something today. it is worth pointing out that another meeting has been

scheduled for next week. we will moreto wait until we get sanctions. >> what might the sanctions look like? the big concern is the sanctions would have a ricochet effect. one thing it -- that is on the table is sanctioning companies and individuals. we already had agreement that they will come out with a list by the end of the month. the big concern is once you get into the economic sanctions that is not great for the eu as a trading partner. you have france which is a real pickle. they are in the middle of the two helicopters. --heard resident holland

president hollande say that he would give up on the sale. the foreign ministers are starting to me right now. >> credit suisse. -- credit suisse. stay with us. ♪

x let's head out to jonathan ferro for look at the fx market. >> the focus is the eu meeting of foreign ministers. the market really not moving. the big one for this today is thatcpi. many people think --if that continues north

[inaudible] this is going to move lower. from the $.coming the fx forecast for this trade right here is one dollar 29 by the middle of next year. it will be dependent on the dollar rally. are the bloomberg top headlines. eu foreign ministers are gathering in brussels to discuss further sanctions against russia. the eu is under pressure to expand sanctions. for a dead and dozens injured after a hospital was hit by is really tank fire. it comes as john kerry is in cairo trying to help rocher an

egyptian cease-fire agreement. the u.s. secretary of state says more must be done to protect the lives of noncombatants. >> no country can step -- standby while rockets are attacking it and tunnels are -- dug in order to enter your country and to sell your people. there is concern about civilians. to --indonesia is said indonesia is set to declare a governor. police and politicians are hising for calm after opponent flagged a potential challenge. >> manus cranny has been talking to brady dougan. biggest reported its

loss since 2008. it could be to point -- the $2.6 billion fine eating to that. -- leading to that. was he concerned? >> absolutely. there is a new message system saying that they deeply regret the behaviors that the numbers speak for themselves. .eople are putting more money the market was looking for $6 billion. net new money comes in ahead. pleased with the numbers. >> there is an impact from what we went through but you can see they are pretty solid. we had 1,000,000,008 of pretax

in our strategic business. pretty strong customer inflows. ouri think if you look at capital progression we got to nine -- 9.4%. solidk all in all, pretty progress and what was a difficult process that had impact on our business. him, were you surprised that you added at $2.6 billion of a fine? had an impact on the business. they deeply regretted the behavior, etc.. article accused him of

being the teflon man. this was not created on my watch, he said. they did not wreck any swiss law when it came to resolving this it is -- we had the discussion are you going to stay, is that the best thing for credit suisse? was resolute that he had more to do, he had done very good, it was in the best interest of the shareholders to stay and we talked about governance. you will hear more of this throughout the morning. compliance, running out compliant business. issues they did not have around libor or foreign exchange and the investment banking service had -- russia had impacted markets more than the credit suisse business.

some of the remaining financial -- chief executives who have survived the banking crisis. our guest says the banking needs to redefine itself. thanks for joining us. can we start with red swiss because the fear was ahead of these results that the impact of credit suisse's guilty plea would be felt in the flow of client money into wealth management -- wealth management. money amounted to seven .4 billion francs which is more than analysts anticipated. is it right than to say that theit suisse has weathered impact of the guilty plea or is it still too early to say? is a positive sign.

the influx of new money into credit suisse but that was basically reflected by the overall trend in the industry. that is nothing credit suisse pacific. suisse say -- credit specific. -- they paid historic is still negatively impacting their reputation and it is putting it back to ubs. extent does credit swiss and the rest of the anticipate the secrecy laws they have been trading strongly on the back of

for many years were going to be challenged? a completelying different picture in switzerland. the egg banks like ubs, credit anticipated the falling off of the tanking secrecy law and have already -- banking secrecy laws. they have changed their is this model on to an onshore business model. they are strongly growing in the asian markets and that is a positive sign. the other banks who do not have the huge sums [inaudible] really different trading products. they are suffering from this secrecy.ack of

of --l see the console consolidation in the inking industry. rivalt then of the growing? goldman sachs is offerings drunker wealth management -- offering stronger wealth management products. are we going to see a slow erosion? they're fighting with the same tools now. this was financial sector is competitive or noncompetitive like any other i natural center of the world. there is no advantage for swiss banks anymore. it is a question of size and potential and brand asset. jpmorgan and the u.s. banks are

more profitable, more competitive in that sense. ubs and credit suisse and the rest will have to fight strongly. it is the same game for everyone. how swissve to show banks are able to cope with the country andn the other compliance issues. it is a tough job for swiss banks. >> we have differing models being forged by ubs and credit suisse. >> it does not have any clear positioning. that is the problem with credit suisse. concernedhave to be about this investment bank exposure which has to be reduced but it is high risk and this forms a cultural clash of the bank.

on the one side you have the more traditional, more predictable wealth management unit and the short-term and high risk investment bank arm which does not give a clear picture about what credit suisse is standing for. contrary to ubs which is now number one in wealth management and has a much clearer profile than credit suisse. does that mean ubs is number one in private banking, credit suisse's number four. you do not see that gap closing? >> no. trust issue in the case of credit suisse. stakeholders have requested the ceo and the chairman to step down after this find that they

paid to the u.s. government. there was no reaction at all. it is more governance issue and an issue of how to trust the management and the board of directors. credit suisse will be lagging behind ubs and now this is the time for ubs. >> thank you for joining us. from [inaudible] holdings presents results. guest joining us at the top of the hour. pushing licenses? ♪

>> welcome back. investalways wanted to in the saudi stock market your wish has just been granted.

editor has more. until now you had to be a local or from the gulf. >> that is right. we are talking about a half trillion dollar stock market. this new move has not come into effect just yet. it opened today for seven countries including saudi arabia. they are doing this for a couple of reasons. they hope to increase foreign investment and diversify their economy away from oil. it might be a good way to get them promoted by msci which designate which countries [inaudible] get promoted to emerging markets days -- status. >> what stocks might investors be able to get their hands on? saudi basicnumber,

industries. linked to the oil industry. kingdom holding. assets -- of unlisted they have stakes in citigroup thenew score and raj bank, largest islamic bank in the world. it has not come into effect yet. second, it will be for withtutional investors five years operating history. door to bake and hsbc are among the banks that have very doubt test trade so we know it is working. you may find saudi stocks in your pension. >> thanks. see you later. chips.s talk about

witholdings came out second-quarter results. it is the design of chips and licenses them. 41 new license is this quarter. -- licenses this quarter. revenues not doing so well on the royalty side. up 2% but 42% increase in licenses. this votes pretty well. there is significant demand for new types of designs going into the latest gadgets. you have connected devices, not just smart phones. they are getting into the newer designs. thermostats that are connected. we can have our cooking

appliances connected. it will be worldwide. cows' se chips within tomachs now. area of growth, it is licensing. there is next reaction from the investor community in terms of results. 3% lower. as exuberant as it used to be. there said -- calls out there saying it votes will for the third quarter. we can talk to our guest about where the growth is. the smart phone market has

been suffering. look at the most recent idc numbers. is drivenphone market by emerging markets. an interesting trend. >> shares peaked at 10 pounds and they have been on a bit of a downward drift. three pounds 33 yesterday. >> you have intel coming out with pretty strong results. let's take a break. it is 7:50 a.m. and you are looking at live pictures of london where equity markets are set to open. slightly higher this morning.

after the break we will take a look at what is driving trade and talk about where the stock might head. we will get a broader look at the markets when we come back. the foreign ministers'meeting in brussels will be on investors' minds. stay with us on "countdown." ♪

>> welcome back to "countdown." a littlere pointing

bit higher. let's bring in jonathan ferro who has a preview of what is ahead. >> eu foreign ministers meeting in russells. does it matter to the market? right now maybe not. futures pointing higher. the reaction to what is going on and the possibility of sanctions on russia is quite minimal in the sense that maybe it is because they do not expect much from today. you have the wishing for ban on military exports to russia and an french who have got incentive not to do that. they have some warships they would like to deliver to russia. it begs the question, if this does not cross the line where they're going to do something with russia and a 1.2 billion euro shipping order is still bigger than what has happened over the last week, it begs the question, how big does it need tobe and economics seem trump absolutely everything.

what is it going to take to get europe together? the dutch are downplaying expectations of what can be achieved. >> the impact might be on the russian market. which fell yesterday for the sixth day but it is rising. you have to have a strong stomach to be in that market. it has not been proven who is behind that lane -- play in crash. the consensus is they want to do something about russia. >> they are not sure about the timing of that weight. they're waiting for evidence or are decisions going to be made of that wait goes on. from was so strong that corner of the market. noise and called it

if it gets higher than that noise will get louder and she will have to start listening. arwe have an interview with m's ceo. see you tomorrow. ♪ .

>> welcome to "on the move." i am jonathan ferro. from the start of european trading. ministers meetre to discuss sanctions against russia. where does it mean for the market? futures pointing higher. just the market. that is what we have seen over the past couple of days. with insight is a ryan chilcote and manus cranny in missouri. he will talk to the ceo and caroline hyde. jonathan, it has been called

the moment of truth. a test of european power. the ministers are gathering to discuss another round against russia. how tough are they really going to be? i will be in brussels all day and breaking news as it happens. over to you. >> thanks for that. here in zürich, the biggest loss of credit suisse since 2008. despite the litigation, money roles in and beats estimates. do? brady dougan will we'll talk about that shortly. >> thanks. designs are used and 95% of all mobile phones. new connected devices. i think thermostats and smart watches. royalties sales