>> good morning from london, i'm dani burger with manus cranny in dubai. this is bloomberg daybreak europe, with the stories that set your agenda. manus: key inflation data from the u.s., a higher than expected rating pushing the fed closer to supersized hikes. troubled times in zurich, credit

suisse reporting a loss of 2.1%. and the happiest place on earth, disney shares surgeon after hours trade on a big beat of scriber numbers. >> it's really almost at direct function of the content flowing into the service. obviously that content was made a little choppy even more by the fact that we had covid that entered a -- interrupted our production cycles. dani: let me give you some breaking numbers on siemens, orders for the first quarter coming in line better than expected and it comes to their profit for industrial business, first quarter basic estimate was for 1.57. this is amid their software push. they have offloaded businesses and announced a flurry of business last night for their postal business. there also offloading some of their ev business.

we will hear from the ceo in about 15 minutes, so be there across the board. manus: there is only one bank that anyone's going to talk about and it's credit suisse. a loss of 2 billion swiss francs. this time last year they had a lost of just over a third of a billion. bloomberg owners can see with the whole team there. last year it was about greenville, they have delivered a report on greenfield, they show those to regulators -- shared them with regulators but they will not share them publicly. what you're looking at is a bank that has had a brutal loss of over 2 billion. 9 billion of that was in the investment banks. you're looking at a provision on litigation. the fourth quarter net loss was two point zero $1 billion.

stepping out of prime services, that's what they warned us about and it has been dramatically impacted by that. those are the top lines from credit suisse. we will see what they've got to say a little bit later on. revenue tops 12%, this is the point, if you're standing in zurich versus london versus new york, this is what it looks like. of got a bag of ubs years worth three times the amount that credit suisse is worth to me. that is long-term incentive. dani: absolutely. clients are also pulling money from their unit since switzerland and asia but what is top of your mind as we start to ramp up this trading day? manus: you know i called a meeting in bomb -- bond traders,

but they are smart boys and. here's the switch, let's have a look at the chart. real rates are rising. we do have it, out goes the money at the fastest pace we've seen on record and they are entering into -- this chart doesn't do it service. we will come up with something a little bit friskier later on. dani: let me continue with the metaphor. i'm also looking at bond traders -- the highest amount of bid and demand coming from non-dealers on record. the lowest amount having their share of the sale on record ahead of the hot cpi expected as well as declines in the bond market, asking have bond

investors simply gone insane? there is the chart there. manus: let's get into the markets. dani: let's start with asia, gains up .4%, similar to what we're seeing in europe. strong gains in the u.s., some cold water thorn -- strong on the idea of a basis hike. equities outperform. what is on performing the most is what outperform most yesterday, nasdaq futures, down .2%. the u.s. ahead of that cpi reading. manus: let's roll it over, goldman sachs upping their game in terms of where they are, 11,000 is where i'm seeing some of it comes through.

you got brent down .2%. what next for oil supply? and bitcoin down by 1.2%. susan collins will become the first black woman to lead the u.s. federal banks 12 districts. let's get to achieve asia correspondent, enda curran. tell me what we know about susan from an economic point of view that could shift the dial on the fed. good morning. enda: good morning. we know in the past she has spoken about the need to increase inflation targets above and beyond 2%.

there's been a change in the years since, so it makes that argument a bit redundant. she seems like something of a straight shooter from endless at know her. she may be -- she will have no option but to have her eye on inflation and to be expected to be a straight down the line fed governor. dani: in the current, our chief asia equities correspondent. let's get back to the earnings story. it's been a rough couple of years for credit suisse, it may be known as the sick child of europe. it was not so long ago that this unfortunate distinction belonged to another lender, deutsche bank.

here to discuss is allison williams, our senior bank analyst for bloomberg intelligence. the specifics are obviously different, but are there similarities between what credit suisse is going through, and what deutsche bank experienced? >> there are a couple of similarities. from a big picture perspective, that's a keeper of the bank. we talk about revenue, we talk about stock, but it's all about the risk you take to get that revenue. there was a breach at deutsche bank that took a long time to fix. that really is the problem, things don't turn around over night and it just takes some time. there's the initial phase of coming to the realization that there is sort of a new strategy,

but it still takes time for the thoughts to work through. as well as it's a distraction for management, there is higher costs involved, and for the investors, it is sort of a waiting game because we know that there is risk, not just directly related to some of the changes they are making, but some of the knock on to some of their adjacent businesses. manus: thanks for staying up so late on this, but it is a monster story. deutsche bank looks as if it is succeeding in turning itself around. what do you think the u.s. needs to do to reestablish itself? >> i think they are taking the right steps. they've had these big charges,

but i think -- keep in mind a lot of these charges relate to things that happen over a decade ago. so i think to the extent, the big charts we saw a related to the investment bank, i would look at it as sort of clearing the decks. i think that what they need to do is really just, they've set up a plan, i think that is a step in the right direction. they have taken the right steps along the way so i think they are on the path. what brings -- gives them breathing room is their improved capital ratio.

if you had to go back to the equity market, that puts a lot more pressure and forces you to do things short-term. we do want the banks to think long-term. i think you just have to take those small steps. but the fact that they had this capital takes up the pressure. i know there's a lot of talk about m&a but that really gives some breathing room there. manus: let's see how the market reacts as the day opens up for credit suisse. allison williams, our senior banks analyst over at bloomberg intelligence. coming up, more on credit suisse earnings. dani: that's not all, we will

also be talking to socgen earning with the global banking head. that is on deck next. manus: plus, disney earnings handily beat analyst forecasts. that story, on bloomberg.

manus: this is "daybreak: europe." socgen is just had a rebound to record annual profit following their first losing year in decades. record earnings from financing and advisory just among some of the highlights. a 30% jump in the quarter.

welcome to the show, a good set of results. resurge in equities and record earnings for financing and advisory. it sounds like the investment bank that you run is doing just grand. given these numbers, is that still the game? >> good morning, thanks for having me. one of the promises we made when we talked about our strategy last may was to both diversify, make sure we have asa slant -- sustainable path in terms of earnings but most importantly that we capture growth, and that's what we did.

long strong -- long-term strategic balance of the business model and increasing global finance is still a success. dani: a 23% gain in equity trading, on wall street the average was .5%. these are very large numbers. yes, you make it more balance, does this scenario make you want to invest more energy and more talent on equities trading? >> i want to invest energy and time, in everything we do. it's a strong business of ours and has been for a decade, decades, actually. so we do want to keep on investing them, and at the same time in terms of the business model we need to have more diversification than in the past

, and this is what we're going to try to achieve in the future. again, balancing the model so that sustainability of our earnings and performances increased over time. at the end of the day, it's what the investors want, for us to be reliable inconsistent -- and consistent in our own performance. manus: goldman sachs, j.p. morgan up 40-50%. i'm looking at your numbers. net income is up 280%. how much will the bonus pool rise by relative to 2021? slawomir: i won't give you the exact figure, but let me tell you something on the subject of inflation, i think it is a

cycle. i guess it's just a cycle. we have a much more sustainable approach, and we are competitive . with the performance we are posting this year, we will be rewarding the performance. dani: you have to forgive me, because i am a stickler for precision and data in numbers. you sadist massive, is that 20%, 40%? any sort of hint you can give us? slawomir: i can't, but it is in line with what the market is going to be doing. we obviously monitor everything our competitors do, and

typically you are guided in thinking about compensation by the compensation ratios. manus: we love it. massive bonuses for multiyear. you're going to retain your staff with that line. on a slightly more serious note, the regime change in rates, what is the biggest risk from that? is it some kind of implosion in the bond markets, the equity markets? how many hikes do you think you will get? talk me through your regime change for 2022. slawomir: you said it is regime change, but a lot of it is already there in the markets at this stage.

so the shift has already happened. i do not expect significant disruptions from what we already know. as long as the current policy has not changed and inflation risks do not accelerate, and if it kicks in later in the year, we expect basically to have less mobilization. there has been a story about the situation as something more of a structural situation there. so i would say that in the end what we are watching out for, right now i don't -- dani: you have to promise us you

will come back on a non-earnings date so we can get more of this. thanks so much for joining us. coming up, we will hear from the siemens ceo. earnings continue to roll-on better than expected for the engineering giant. that is next. this is bloomberg. ♪

dani: welcome back to bloomberg "daybreak: europe." siemens reported that her than expected earnings amid a software push. earlier we spoke to the ceo. >> revenue grew by 9% and on the bottom line, net income as well as earnings increasing by 20%. we also have our cash flow which comes in with 1.1 billion above

the previous quarter. so that's a very successful start. on top of that we have announced that we divested two non-core businesses. he found a better owner, which is another step forward toward our strategy as a technology company. since we are not that clear on when the gain will materialize for one of these investments, we can't apply this going forward where it is. dani: i do want to look at some of the hit you are still taking two covid pressures and supply chain pressures. in the past you've said there would be easing in 2022. do you have the more clarification on when you might return to normalcy? >> -- not before the second half of the calendar year.

it might drag on to 2023. it's all about semiconductors. so far we came across quite well. we are running our manufacturing on full load due to shortages of supply, where all -- we are also not able to produce the right mix of products, but overall i would say we are managing through the supply chain crisis quite well. we have a strong supply chain management team and strong partnerships with our suppliers. i believe that we manage that ok and it will go on for a while. dani: you are looking at a flurry of deals, shedding some non-core businesses. presumably some of these businesses are industrial

related that feel the pressure from these crunches. how difficult is it to offload these types of assets given the environment we are in, and get the valuations you want? >> it was not that difficult. our business is benefiting from the tailwind in the market. we found in an international technology company a very good owner. the other part is that we finally divested a 50 half -- 50% stake in a country -- a company with electrical systems for cars. dani: as you say, these are growing markets. why get rid of them? >> because we are gearing up for automation digitalization and sustainability. the business is more highly

driven, it's more of a small project and solution business, so we found a better owner. we are automating the lines, not delivering products into a car. dani: many have believed the portfolio pruning at siemens was behind you. can we take it from last night that it is back and you are looking at shedding more assets? >> we have portfolio companies where were bundling non-core businesses. that is nothing new. dani: the siemens ceo speaking to us earlier. he also told me that he thinks any sanctions coming to russia, increasing tensions between russia and ukraine, he sees little impact at siemens as well. manus: i think the whole world

is trying to understand what happens next, if there is any fundamental shift in the geopolitical landscape between russia, ukraine, and europe. coming up, the german industrial services manus: good morning fror

middle east headquarters in dubai. i manus cranny. dani burger is alongside me in the london hq. dani: running hot, traders are trading -- looking to inflation data, risks pushing the fed closer to a hike. troubled times, credit suisse ports or quarterly loss of $2.17 billion.

we speak to the ceo, thomas gottstein. disney sees a surge after subscriber numbers for disney+. >> it is almost directly a function of what the new content is that is flowing into the service. obviously that content was impeded and made a little choppy by the fact we had covid, and it interrupted our production cycles. dani: happy cpi day, bond investors are gorging themselves. yesterday, a remarkable auction of 10 years. we saw the highest demand from non-dealers on record. that translated into a record low share of sales for primary dealers, that is the bottom line. this is a market loading up on bonds despite expect asians for a hot inflationary reading. -- expectations for a hot

inflationary reading. have bond investors gone insane? manus: or, is it the head of the investment bank itself, it is already in the price when the hottest inflation print comes down today. are we going to see a car crash in the bond market, or a jackknife? is a lot of it in the price? goldman has upped their game, they have gone to 2.25%, 2.45% for next year. maybe they have not gone completely mad. maybe you want that in your bond backpack. what about the markets? dani: what was a top the charts at 1982? manus: you can go to my linkedin video. i'm so grateful you gave me that

shame about my linkedin video. you do the first board, i will tell you who was number one on this day in 1982. do the board. dani: that is a nice teaser, then manus will give us his hot take. we are looking at an asian session moving higher, up 0.5%, reflecting a similar move in european stoxx 50 futures. a strong day on wall street yesterday, but in the u.s. the picture is different. we are bracing for the hottest readings, something atop the charts, s&p 500 futures down .06%. nasdaq futures taking the brunt of the breeding, down 0.1%. -- the brunt of the beating, down reserve .1%. manus: next week is number one. commodities are rocking it.

copper is ripping it up. we are in a super cycle. we have citi on the ball. copper up 0.5%. we are in an underlined deficit, a crunch time, a super cycle -- we have heard that from everybody. bitcoin down 1.5%. it is trying to find its feet. oil goes lower. biden discusses price stability, and they say a deal with iran that addresses concerns for both sides is within sight. oil down by 0.3%. in terms of the news flow, we move along -- they reported their sales for the full year and met estimates. it is a german industrial and services provider significant growth in 2022.

let's get to christina johansson , she joins us from bilfinger. good numbers, decent outlook. where is the strongest growth going to be given that the world is grappling with exit speeds from covid? china at zero, u.s., masks off, and fully normalized. christina: good morning. we are reporting today a very good development last year, and giving a guidance on further growth in 2022 and beyond. most of that growth for bilfinger is related to the farming industry and energy transition, which is very closely linked to esg topics. we play a major role here and see a possibility to grow our role going forward. dani: let me take the other side

of this. clearly some strong growth, but what segments are you feeling the most continued supply chain pressure from? christina: we feel it indirectly, because we are not dealing a lot with material in our balance sheets. it is more that we are feeling it through decision-making on the client side. on some projects, and projects are important for us, but frame agreements are more important. on the project side, we see in north america that the decision making progress is influenced by supply chain issues. it means some projects are starting off later than originally planned. manus: part of the discussion around your company is where you go next. we have reports that there may be a bid for your company. is that correct?

do you think as the cfo and upcoming ceo that it would be good to go private? christina: we are obviously not making any comments on speculation or rumors. going forward, the most important thing is to continue this journey to become for all stakeholders a better company, and that over the years going forward. the ownership does not play the major role. we need to strength and grow, and we need to become more profitable and generate more cash. that is how i see my role as a member of the executive team. dani: if ownership does not matter, i wonder if being a private or public company matters to you. could you get more value as a private company? christina: i think when you go through a transformation like this, and i would regard us to

be at the end of that transformation, you can have a situation of being public or private. you have good and bad sides of that. being through most of the transformation, i obviously enjoy being in the capital markets, and being able to attract more investors to what bilfinger can offer as a company. manus: the most important thing is what does your activist investor believe in? are they fully behind you, and no interest in entertaining a bid if it came along? what are the conversations at the end of this transformation project? are they all in with you? christina: we have a very good relationship. they have been on this journey

for a very long time. it is not the only investment where they have taken this long journey. i can obviously not speak for them, but there is a strong commitment to our strategy and our way forward. that is what counts for me. dani: yesterday in the u.s., president joe biden was touting the energy portion of his build back better bill, and he is trying to get passed in congress. it would increase infrastructure spending and clean energy spending in the u.s., that would present an opportunity for bilfinger? christina: it would offer further opportunities. we have already started in 2021 to see more opportunities in the u.s., and are increasing steadily our pipeline in north america. these decisions will be taken and it will be an additional upside. manus: great to have you with

us. we could go on for hours. you have your finger across the world in so many subjects. please join dani and i on a more relaxed day in the studio if you are in london. christina johansson, ceo / cfo, bilfinger, thank you for being with us. coming up, zurich insurance reporting the highest net income since 2007. mario greco is waiting in the wings with his view on the markets. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i'm dani burger in london, alongside manus cranny in dubai. zurich insurance reported its highest net income since 2007.

they are boosting their dividend by 10% after growth across all businesses and reduced coronavirus claims. we are joined by mario greco, ceo, zurich insurance company. a 10% proposed boost to dividends. what level of covid claims do they need to stay at in terms of being lower to follow through on this dividend boost? mario: no, we see covid as having a reducing effect on us in 2021. we do not expect covid to be a factor in 2022. 2020 was the year where we head the most relevant impact from covid. our policy is based on the stability of the dividend, so when we raise the dividend, it is because we expect at the very least it will be maintained over time.

manus: good to have you with us, that is a strong and straightforward message. the strongest net income since 2007 -- where is the strength of pricing? we are in an inflation world -- we will get to that in a moment -- but where were you able to extract the pricing? is it in the u.s. relative to switzerland? mario: the pricing changes have been homogeneous through the world. our predominant business's commercial insurance, which is a global market. prices tend to move together in the same direction. i would also like to point to the fact we have been growing our customer base by 2.2 million customers in a year. this is a huge development of our customer base. it proves we are in a very healthy situation where customers like to work with us,

and they come to us. we are very glad to see that happening. dani: manus keyed this up for me, so i will go for it. you're talking about inflation across the board, but are you expecting more, or has it eked? -- has it peaked? mario: we think inflation has peaked, and inflation causes are due to the recovery after the pandemic lockdowns. we think this will gradually fade away through the year. we expect in the second half inflation will start to be coming down to the normal target that the central bank set. the central banks have a lot of action they can take to fight inflation. manus: therein lies the debate. on one side of the equation for you, i presume you will welcome

the rate hikes. the market is looking for up to five rate hikes in the united states of america, but i look at what is happening in the bond market, which are revaluing. there is a feast on one side of rising rates with the risk of bond arc it's perhaps -- bond markets perhaps seeing a destructive force in front of them. mario: yes, for us, to make a long story short, raising rates is a very positive effect. years ago when rates started going down, we were forced to restructure ourselves, change our business model, and count on higher profits and lower expenses, which would lead to successful results as lester proved. -- as last year proved.

this is good news for us. they will eventually improve our profitability. it will also make some products, which today are barely profitable, they will come back into being highly profitable again. dani: mario, concerns about climate and natural catastrophes have not gone away. you have expressed the desire to pull back from exposure given the hit you have taken previously. how have those plans been developing? mario: of course, climate is incredibly important for us. as an insurance company, we are at the center of all this transformation in the economy. we have pulled back from a few sectors, a few industries in general. we are trying to support our clients to transform their business models into sustainable ones.

the decision to not insure them anymore is a painful one, and i would say in many cases it is also a useless one. we have taken this decision when and if we found the clients do not have any real good plan to transform into sustainable businesses. we hope we will be helpful to them to transform. we need to act quickly to make the investor sector fully sustainable, and we need to do something in the next years. manus: mario, you did the hayward deal -- the huge deal in the united states 18 months ago. even the dividend structure you laid out to us, and the ability to pay out a healthy dividend, are you in active search mode to buy another business? what is your thinking? are you in consolidation mode? mario: we are definitely not

actively looking. on m&a we have an opportunistic approach. we have the capacity to do it, as we demonstrated over the past years. if and when we find opportunities, we go for them. fundamentally, we run the business in a very tight way. we have targets. we have priorities. we follow the priorities. we want to achieve or beat the targets. all of our efforts are to beat the targets by the end of 2022. manus: we wish you well. come back and see dani and i anytime. mario greco, ceo, zurich insurance company, on his dividend payout and search for hitting the targets. laura wright has the first word news. laura: the u.k. is putting more trips on standby to support nato in the event russia invades ukraine.

government officials say the additional 1000 soldiers would help any humanitarian response in the region should it be needed. the u.k. is also expected to set up sanctions legislation as soon as today. moscow has repeatedly denied plans to invade its western neighbor. england is scrapping covid self-isolation rules, bringing an end to the last of the pandemic restrictions that have dominated life for the past two years. the move forward to the end of march. it puts england beyond major western countries in relaxing curbs. susan collins -- the first black female to lead one of the central banks 12 districts. she has a doctrine -- doctorate in economics from m.i.t. she replaces eric rosengren who stepped down last year. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. dani: thank you so much, laura wright. coming up, disney earnings surged. do not miss our interview with the ceo, bob chapman. this is bloomberg. ♪

manus: disney posted first-quarter earnings well ahead of estimates. disney+ streaming service, we spoke to the ceo. >> it is really almost directly a function of what the new content is that is flowing into the service. obviously, that content was impeded and made a little choppy even more by the fact we had covid, and it interrupted our

production cycles. as we stated last earnings and these earnings as well, that flow becomes more steady and predictable, a little more optimal during the second half of this year. we expect we will have more subs in the second half of the year than the first half of the year. we are encouraged by that. it will be choppy or than a perfect linear line, but when you have great storytelling and great brands like we do, it will draw a lot of people across the globe. >> i want to talk about parks in more detail. you hit some all-time records with revenue, but attendance is lower or in-line depending on the part you are talking about. what is the outlook ahead as omicron wanes? are you preparing for new variants? do you see hitting new records in attendance, or is it all about revenue? >> we are preparing for

anything. it is the last two years that has taught us to remain flexible, but if we have a focus on our guests, we believe it will turn out fine. one of the reasons we have had such a recovery in demand and attendance at our parks is a function of a fact that consumers, our fans trust us. not only do we deliver great experiences and deliver great stories, but they trust us. we will move slowly when it comes to attendance increases because we feel we want to be responsible. emily: disney is leaning into the meta-universe, how can they offer products that fit into this question mark is it about lucasfilm, industrial light and magic? paint the picture. bob: it is about all those things. a guard us of what you want to call it, we believe there is a world where we can add a third dimension of storytelling.

i call it a three-dimensional canvas. we can take the folks that make our great television shows, and make great music and movies and theme park attractions. what happens if you enable them, you give them the degrees of freedom to paint on that third dimension, and do not necessarily constrain it with typical definitions about what is a book, what is a recording, what is a movie, and you let them explore and use the physical world that disney is uniquely postured to create in our theme parks, but take the media and the digital and virtual pieces, which we have shown we can do, and use disney+ as an opportunity to bring those things together so we can tell stories in that third dimension. i think it is a great opportunity for us, the next great horizon for disney. it is the next great horizon in entertainment. dani: disney ceo speaking with emily chang.

joining us now is laura wright. everyone was looking at disney+ this quarter, did it live up to expectations? laura: it beat them. 11 million additional subscribers. they reach their goal of reaching 230 million subscribers on the disney platform by 2024. his knee plus was only founded at the end -- disney+ was only founded at the end of 2019. it is hemorrhaging money, $530 million this quarter, but the activist investor wants disney to consider itself as a growth business to compete with this new frontier of streaming businesses and content. bob chapek has been vindicated by his strategy over the last two years.

customers are becoming more excited, they are spending more money, 40% more than before the pandemic on food and merchandise. the traditional tv businesses, which include espn and abc, there was a decrease in operating income because production is more expensive. disney is investing in sports. sports is imperative for disney because espn plus generates more revenue, and even disney+. dani: i have not been in a theme park forever. thank you very much, laura wright. did you figure out what is at the top of the charts in 1982? manus: i finally got it. this week in 1982, centerfold by j. geils. i'm not even going to sing

disney on air. dani: i wish you would. let's look back at the credit suisse earnings. we have seen investment banking revenue down. some of the reputational damage they have sustained, from other drama at the bank. manus: yes, and the numbers, they said we will have a loss last week, now we know the scale. $2.01 billion. a majority of that in the investment bank. more provisions, but when they talk about the business, the first quarter is likely to be weaker than the first quarter of 2020. dani: i was going to say, we have to check that out. a great blog posted.

they are seeing compensation costs rising. what is happening with the bonus pool? manus: socgen is down 32%. it comes down to the report delivered to the regulator. it will not be made public, but francine lacqua spoke to thomas gottstein. take a listen. thomas: we had a slow start in january, but as you read through the last few weeks, clearly a pickup in action, activity, and engagement. it is moving the right direction, but it is clear the first quarter will be significantly lower than last year, like all the banks. we saw an incredibly strong first quarter 2021. the organization is focused on a plummeting the strategy and a clear alignment from the board of directors on the executive board to