manus: reboot at credit suisse fails to deliver a rebound. drop as investment bank misses estimates. stocks in moscow. syria's president met with president putin. metal.o the ferrari's ipo pricing roars. ♪ manus: this is the pulse, live

from bloomberg's european headquarters. let's get to our top story, credit squeeze. raised capital as a part of its strategy. francine lacqua is on location. pressing, a good morning to you. a great interview so far, talking to tj -- talking to tg tijian. francine: it was quite strategic overall. clearly focusing on the wealthy in asia. he did say he will unlock value in the swiss bank. hand-in-hand with cost-cutting. this is what is getting investments -- investors worried the most.

you have to be efficient no matter what. that [indiscernible] it is a very serious decision. something we will like to keep. we have pushed for self-help. we are rightsizing the investment bank. we are cutting by 72%. we are cutting prime. that is good to free up capital, because we are reducing the capital cost. where cutting cost of 3.5 billion -- we are cutting costs, 3.5 billion. 2.7 initiatives we're launching. what i can say about these not an is they are

ambition. where worked very hard every day for three months. these are plans posed by our own. 3.5, our summation is a very specific idea. francine: you feel comfortable with these figures and numbers and streamlining? you have enough for a safety buffer? tidjane: we'll be at 12.2. the .5% leverage. we will be immediately compliant. francine: you're comfortable that the capital rating? that is one way to test to take a number of investors and try and do a nonpreemptive

crunch. billion swiss francs with a commitment signed bunch of very good names. [indiscernible] francine: in terms of streamlining, he says putting three divisions in place is based on geography. one is asia pac and the international wealth management. share price has fallen. whetheryou discussing this was because of strategy. whether the investment bank cuttings were not enough. billion is in capital raising is a lot. it is going to dilute shares. we'll have to wait a couple of

days to see what investors are worried about. concerns about whether he is cutting too much muscle of the investment bank. macro the point is everybody is turning towards wealth management. deutsche bank is splitting as well. one bank going after the wealth. challengere inside going after credit suisse. that is where some people are going to say he has got to make change. more change in terms of the kind of product he offers. francine: leading up to the strategy, we had a lot of leaks. the two obvious bits which he will reduce were the prime sectors and macro. this he is going to cut down significantly. this was one of the things he expected. when you look at investment are being cut down

significantly because of latorre pressures. i had a long -- because of regulatory pressures. i had quite a long interview with him. any bigll not be european mastodons. it will service his wealthy clients. that is the kind of offering he wants to put to them. manus: great work. we will speak to you later throughout the day. francine lacqua in zero -- in zurich.a francine is there talking to the ceo of credit suisse. strategyou make of the , the crowd desk the capital raised? he has 1.5 million in the bank

raised. andrew: i think the problem that credit suisse has gotten, they haveank too, is delayed doing the inevitable. this restructuring is a long time coming. by waiting, they've allowed the competition to get ahead. they have done the exact same thing. they have reduced their investment banking by wealth.ating on their growth is much higher. if you're going to do the strategy, you're doing it late. it is much harder to achieve the same outcome. i feel the market's reaction is we like what you are doing, but show us the money. they will have to deliver. medical what did you make of the ipo? -- manus: what did you make of the ipo?

doings what for army is -- that is what ferrari is doing . they are accepting value for an ipo. we didn't think that was coming. is that a good move? there are good things. and doesn't genetically change the nature of the business. with ferrari, it was about saving than giving you access to a great investment. they sink a lot of debt into ferrari. manus: what will you be wearing? it is a great story, isn't it? andrew: it is a great car. it comes with a damp expensive price. it is not one for us. it has cap. has capped.

efficiencyo the fuel . how leverage a bull is that brand? is thateverageable brand? manus: we are coming up with all the puns today. do you own credit suisse or ubs? where do i look in europe? barclays chairman is talking about we need a bank in europe to challenge the u.s. investment banks. where do you look for value? andrew: the challenge is with .aving that mastodon the danger and that is that they are extinct. [laughter] the big challenge the europeans that creditleverage suisse shows, 3.5%.

in this industry, yet to go early and hard. industry, you have to go early and hard. been of the banks have historically complacent and have not grasped the learning early. we like ubs because they have a clear policy. i think these people are doing it late. more difficult position. not everyone can be a winner. manus: they are in a restructure mode as well. you would see more details? andrew: deutsche bank has a lot to do. they had a balance sheet which was creaking at the seams. a new chiefh

executive coming in. let's see what this strip just let's see what his strategy is -- let's see what his strategy is. those capital ratios not as strong as they could be. all be queuing up to speak to those new ceos -- manus: we will all be queuing up to speak to those new ceos. speculation of more central bank stimulus following week trade data. september rose 6%. much more than economists 'expectations. for rory raised -- for rory million.93 the company will have an enterprise value of $12 billion.

the shares trading today on the nyse. skies --podcasters more people subscribe to the web streaming services. added customers. shares getting left this morning. coming up next on the pulse, we have been to zurich. basics of the declines, what does it mean? ceo ofgoing to ask the norsk hydro. ♪

manus: welcome back. we are back on bloomberg tv. looming -- streaming on bloomberg.com. one of the words -- one of the has big-- norsk hydro estimates. ,e speak to the company's cfo kallevik.

you are going to put more light on this for us, china. ceos,ken to a variety of it is so difficult to say what is going on. give me your perspective. the commodity is important. you are right. china is very important. it is more than half of the world's production. the good thing is we see good inside andhe demand outside of china. still around 4% global growth this year. it is an ok outlook. manus: let's talk about your business. for the people out there who say i see pictures on my screen. you are in the acquisition mode at the moment. , why do that deal

now? are there better value deals to be done? elvind: there are still a cost train for raw materials around the globe. it is one of the world's biggest and most cost-effective mines. the development of that mine over time. it is important for gdp growth for us. manus: when it comes to strategy, pricing is important. we've got a huge geopolitical issue on our hands. for the past 24 hours, the key issue has been chinese are dumping. they are ruining your business. my question to you, are the

chinese stopping it? could this lead to a political desk to a bigger political issue i willindustry? elvind: be careful getting into the politics. the you look at this from 30%,cost curves, of that 60% to 70% since in china. chinese dishes can sustain production at the current level for us. manus: those numbers speak for themselves. demand, we are seeing new levels of demand for your roddick. if we look at what for just done

-- what ford has just done. i know the demand side is important. what are you seeing? what is going to save your business? or a floor under the pricing? elvind: the floor of the pricing, it is basically the cash cost curve. lower.ly, we are much much more producers are negative today than what they have been in the past. normally that should indicate some sort of alignment on the supply side. -- we also see the ford announced the f2 50 which is equally important in terms of cars. never let a leader off

the line without getting a price off of you. 1500 -- $1545 is where we are. how much more downside? the supply side, is there going to be more pressure in the near-term on this price? elvind: it is always difficult to say. with 30% of global production being on the water from a cash perspective, that is going to hurt for some producers. manus: thank you for joining us. the cfo of norsk hydro joining us on the phone. staying with the commodity theme , let's check on the just let's check in on the price of oil.

-- let's check in on the price of oil. it is make or break time. close above $50 per barrel in the last two weeks. at thatr ended with oil . we are going to be keeping a close eye on that. oil is having a massive impact. let's bring back in andrew perry. we're going back to 1990. we break above 2004. we are back at really difficult times. 2008, 2009. what you think? what is the impact for you as an asset manager? andrew: the most significant date was september of last year

when the oil price begin to weaken. qe in the states ended. a lot of the oil price is not about the supply side and demand side, but also the supply of dollar liquidity into the system. kiwi, increasing kiwi. that is when we found the stress in the emerging world and stress and demand in global demand generally. that was the big moment here it -- big moment. a lot of it is around u.s. monetary policy. turned off thear tap of credit growth in the emerging world. you can add in the extra geopolitics of the oil price in the middle east. we talk about saudi targeting

shale. it is not likely the are targeting iran. in geopolitics in that region are more than shale which could be a bit of a red herring. i've got a complex view. we got no view on the price itself. whether that is december oh march for the federal reserve. sluggish xor for data out of japan. stocks gain. what else? we're live in tokyo next. ♪

manus: welcome back. this is the pulse. also streaming on your tablet, your phone and bloomberg.com. market volatility. i've got volatility. what we're talking about is the 12 point range in the past month. we had a torturous third quarter, did we? we started this fourth quarter, everything rallied. they were the tortured souls of qe -- of q3. will we get more volatility as

we go into the end of the year? nothing much has changed out of china. andrew: you're quite right. every bit of news is interpreted positively. we get to the end of september and we are all flashing our wrists and focusing on the negative. the big problem the markets have is trade. everyone had become cautious on growth. they are short the physical commodities. fed whichent from the is a revision triggered this reversal. that is largely what we have seen in the last month or so. this quick, sharp snap back. now we are in the position of what comes next. that is where the market is struggling to work out. did we get overly pessimistic?

or is it a reflection point in the global recovery story? manus: one of those is in japan. japan.oing to cross to the september export numbers. japanese stocks rose on the news . all based on speculation that the bank of japan will increase its monetary easing. frommy editor, he judges -- he joins us from tokyo. when you look at the data, it doesn't make a great reading. james, he is not standing by in tokyo. japan.alk about the numbers were not great. numbers.ight produce

lending is not too bad. we're seeing things improve. we are seeing banks increase business. japan on the other side sees weak numbers. good numbers from the ecb. no more qe. bad numbers from japan. more expected from japan. do you react to it? what do you make of it? how do you prepare? andrew: you don't react to it. the bottom-upg on stock fixed. how i tend to view it is the best economists of the companies are looking at the news flow. that is what we are seeing today. the news flow is not that great. a lot of profit warnings around. it is not -- it is about the first rate -- differentiating.

restructuringed hard in early. uncertain economic outlook is to find those companies that are independent of what happens in the economy. manus: the world is waiting to see what the bank of japan is going to do at the end of the month. do you believe in that overarching story that abenomics is working and you'd want more exposure to japan? if abenomics is working, but again should go higher. manus: i thought we all needed syncopation. andrew: you can't just keep devaluing your way out of a market. it gets to a point weather others no margin or utility. we've seen there are consequences from the euro going

down, the yen going down, emerging market currencies going down. it creates a disinflation or a pressure. central banks can't conjure up growth at nausea him from the evaluation. that is the big challenge we are seeing in the world. where is the increase in demand going to come from? that's why i'm a big skeptic on qe forever and ever. it could actually be a challenge for growth. there is a problem with pension funds, deficits, companies feeling reluctant to invest. that is why everybody is focused on janet yellen. they don't necessarily believe the economy requires it, but just to show confidence that we can actually move toward more normal and less emergency-driven environment. manus: i get every single point

of that. then how do you position in the next two to three years? do you believe rates will go higher? quid pro quo, where do i want my biggest exposures? question is,ig what is normal anyway? we have this big struggle to define what that is. rates will go up, but i suspect they will come back down again. how do you protect? companies that have the products people want and tap into that demand. manus: ok, andrew, thank you so much for being with us this morning. andrew parry, head of equities at hermes investment management. let's get to our top headlines. raised $893 million in its u.s. ip, pricing shares at the top end of the range. the company will have an

enterprise value of around $12 billion. the shares start trading today on the nyse. for the second time in 30 years, brazil is heading toward the impeachment of its president. a group of highrollers plan to file a request today to begin proceedings against president dilma rousseff. the case -- the nation's capital y -- the nation posterity has slumped this year. credit suisse has raised $6.3 billion of capital for an overhaul that will see the initial public offering of its swiss banking unit. that came as the zurich-based bank reported third-quarter profits that missed analyst estimates when net income decreased. kremlin has confirmed that president assad

traveled to russia for talks with putin. the two reportedly discussed the fight against terrorism and recent airstrikes in syria. for more, let's speak to bloomberg's ryan chilcote. what do we know so far? this was one of the red headlines all over our bloomberg terminal. ryan: classic putin, surprising the world. assad arrives in moscow, meets with the russian president, russia's foreign minister, and we learn about it today, a day later. rolled out in high fashion. video from their meeting, a transcript of their meeting. the syrian president has not been outside of syria, to our knowledge, since 2011, since the civil war in his country killed more than a quarter million people. it is bold. many, audacious, and

still more, outrageous that the russian president would host the syrian president. it was something the syrian president appreciated. he said the russian president and leadership had prevented a tragedy already in syria by joining with their military in the fight against the islamic state and the many opponents that the syrian leader has. for his part, the russian president said this is just the beginning. we learned that russian parliamentarians will be going to damascus. the russian president said he's happy to cooperate with other countries, not just on military action, airstrikes, but also on finding a political solution to the crisis. manus: ryan, what is the likelihood of other countries now wanting to meet with russia?

i read a wonderful editorial in "the new york times" that didn't portray this relationship as being something separate from the other allies. ryan: i think it is too early to tell. i'm not sure the other players have made up their mind about what to do with russia and its alliance with assad. there's two ways to see this. on one hand, the fact that assad is meeting with the russian president is russia's way of saying he is in our pocket. , ifou want to deal with us you want a resolution in syria, you need to come to us. another way to see it is, there's no way assad will be stepping aside. they have this union. the two of them are going to fight towards victory. we had jean-claude juncker calling an emergency summit of the european union leaders on sunday. he says there's an immediate operational need to solve the migrant issue. the more migrants come to

western europe, the more the kremlin is betting that the russian strategy might get some kind of credibility and traction in the west. manus: ryan, thank you very much. ryan chilcote on the latest with assad and putin. is due toe president meet with the u.k. prime minister today. before they both attempt a business summit in the city of london. addressing the british lawmakers in department, xi stressed the increasing interdependence of their economies. more deals between the two countries are expected today. caroline hyde joins us to discuss exactly what could be on the table. the british chambers of commerce executive director of policy, adam marshall, also here. caroline, what a spectacular 24 hours of pageantry. but this is about deals.

of this the reality trip in terms of deals? caroline: we knew yesterday that 30 billion pounds of slack was going to be coming in the door. about 4000 jobs added. what i thought was so stark yesterday was the music that i'm sure xi jinping was giving them. he basically was saying, everything you've done to try to bring our financial markets together, i like. he's saying, i see that you are one of the first western countries to become a member of the asia infrastructure investment bank. i see that you make your yuan denominated debt a priority. he understands that we want to become the hub for yuan trading offshore. to that end, today, the bank of england said we are extending our swap line between the

central bank of china and the bank of england. they are not only extending it, they are building up the size of it to see more transactions in the u.k. manus: adam, when you see what has gone on over the past couple days, there is a close business relationship. what you're seeing and hearing is very much about the yuan trading. is that what you want to see? two things that we want to see out of the state visit. the first is a project that delivers long-term economic value to the u.k. when you talk about trading here in london, that contributes to economic value. so do the industrial project we are seeing announced today. the second thing is really an increase in the export flows from the u.k. into chinese markets. for us, that's critical. we've seen big increases in u.k. trade with china in reason

years. manus: i want to put that in context. all the banner waving is fantastic, but we are quite a ways behind our competitors. let's have a look at some of these issues. we lag at what's going on, the biggest exporters are germany, they are the u.s., we are far behind. caroline: look at that deficit. that is phenomenal. we do have a substantial deficit. we are net importers of china. the whole point of this trip is to put concrete measures in place. one of those is extending the visas, which is up to two years. that's quite a substantive step forward. adam: it is, but so is the familiarization of more u.k. companies with some of the opportunities in china. we work closely to try to get

people over to beijing, shanghai , to see for themselves the export opportunities so that we can start to erase what you've just referred to. we are likely to the importing more than we export for a long time to come, but we see there is some real opportunity here and we hope that because of the focus on trade and investment, we will see more of those opportunities. caroline: jack ma, head of alibaba, is in the inner sanctum of business advisors to david cameron. accessly trying to help the commerce in china. is there an element -- you still say there's years and years until we can become net exporters. why is germany already achieving it? there are structural differences between our economies. i think where we have got some is professional

services, business services, or the finance sector. the intensifying links between the two nations. we are a services powerhouse. we need to make more of that. that might mean more access. that part where some of our biggest opportunities lie. cameron has done a good job on this trip. , i don't know what the polite word is to say. are they acquiescing at the sake of finance for the perhaps human rights? adam: i wouldn't want to comment on the political rather than the economic aspect of this. the test of this is long-term economic value for the u.k. some of the investments generate not just jobs, but supply chain

opportunities in the u.k. whether it's in the energy sector, etc., that long-term economic value is what we want to see. some of it is excellent for us. ok, adam, thank you very much. adam marshall from the british embers of commerce and our very own caroline hyde. rev up your engines. ferrari races to the top of the range. we are off the blocks to go fast and furious. that is next. ♪

manus: -- >> emerging economies in germany, asia-pacific -- [indiscernible] manus: welcome back to "the pulse." we are live from bloomberg's european headquarters in london. that was the credits we ceo speaking to francine lacqua in zurich today. zurich says it is raising $6.3 billion of capital

as part of a strategic overhaul. ferrari goes public. ferrari is going public. that is one of the stories of "the pulse." the luxury carmaker starts trading in new york after raising $900 million in its ipo. i will have an enterprise value of around $12 billion. let's get to chris in berlin. this is a very sexy story. it has a great kicker. take me into the numbers. put it in context for me. what is ferrari getting? how much debt is being shoveled into this? >> ferrari is not really getting anything. all that money is going into the pockets of fiat chrysler. fiat is taking a fair amount of money with it. there is a debt facility that ferrari is paying to fiat

chrysler as part of a goodbye gift. there's very little that ferrari gets out of it. this is all about fiat chrysler. this is all about sergio marchionne's ambitions to make a global automaker. he needs the money from the listing today. it is not just the listing happening today. it is a 10% slice of ferrari. fiat holds 90% of ferrari. the rest is going to be distributed to fiat chrysler shares. he wants to make fiat chrysler shares even more attractive. he's talking about consolidation all the time. he's milking ferrari for all he can get right now. that strategy is focused on fiat chrysler and not so much ferrari . manus: they are priced at the

top of the range. succeeding perhaps where other people have faltered. do you think they could have squeezed more juice out of the lemon? >> there was definitely a lot of anticipation for this ipo. it has been a year in the making. there's been a lot of demand. it is just a 10% listing, so a really small sliver of shares. they probably could have squeezed more out of the listing today. at the same time, when shares open, what fiat chrysler was like to see and what ferrari would like to see is that the stock does well today. as long as it's only a 10% free float in the market, it probably will do well. in the long-term strategy, marchionne wants to position himself as a hero of the markets. for instance, if he does make a proposal for gm, which he's been

talking about, a very positive ferrari ipo is good for fiat chrysler in the long run. if he would have bumped it up to the top of the range, then the stock doesn't do so well, it is probably not that good for fiat chrysler in the long run. manus: chris, thank you very much. all about creating that exclusivity. thank you very much. now, what have we got later? nobel prize day. economics winner angus deighton and harvard history professor for ferguson join tom keene a special edition of "surveillance." you don't want to miss that at 4:00 p.m. london, 11:00 a.m. new york. ♪

manus: here are some more of bloomberg's top headlines. the syngenta ceo is quitting the company amid criticism for his refusal to engage with monsanto. that was over a $47 billion takeover approach. john ramsey will step in as interim ceo. shares are up on the back of the news.

rates eightnterest ordea.evenue at n missed the 864 million euro estimate that analysts had compiled a bloomberg. the bank of england says global risks don't change its view that rates should rise. our very own jonathan ferro spoke to the bank of england .onetary policy committee the outlook remains unshaken. >> clearly, there are greater risks out there. the question is the judgment as to whether these affect the central outlook for the u.k. economy or whether they simply compound some of the downside risks and only skew the outlook. my view is that if anything, it

compounds the downside risk. crystallizesks to into a material change, those have to be transmitted into the u.k. economy. that is more through financial channels and confidence channels then it is through direct trade channels. manus: jonathan ferro joins us now. is, theind fascinating federal reserve are worried about what happens on a global basis. our numbers in the united kingdom -- jonathan: the ecb is worried about it on a global basis. he's not alone. we did a poll this morning that said the overwhelming majority of economists think the u.k. will be able to withstand any decline in growth abroad. that's one thing. where he is alone is voting to hike interest rates and getting

anyone to vote with him. a lot of people think he can will continue to be the lone dissenter. what is interesting is not just the divide between him and the rest, but the divide on whether the market is pricing in the rate hike. mark carney talking about coming into sharper relief for the year. the market looking at the start of 2017. someone is wrong. manus: there's always a bit of a duplication in markets. i remember you and i had a one house had a huge call on euro-sterling. it was bnp paribas. they were gearing up for a stronger level of dissent. that has dissipated. to get it going to take anybody to join him? jonathan: i put that question to him. he said the difference is marginal. said that, but

unfortunately he's not there anymore. manus: 15 seconds to go. listening on bloomberg radio, "bloomberg: the first word" is next. for me, that's it. you've got "surveillance" with tom keene and jonny. ♪

says it willsse raise more than $6 billion in fresh capital. we speak to the ceo. revved up. an ipo thatis, gives it a $12 billion valuation. sells for $52 a share. japanese exports continue at the lowest prices in a year. stocks trade higher on speculation the boj