shery: su keenan with the latest on archegos at credit suisse.morning calls ahead the asia trading day. we saw weakness for the u.s. dollar in the new york session and goldman tweaking their tactical outlook on the greenback. what are they saying? sophie: the currency team at goldman sachs see short-term support for the dollar on former u.s. growth and rising yield. they close dirt short dollar recommendation against g10 commodity currencies after a copy few months. -- a choppy few months. still structurally burying on the -- bearish on the dollar with a widening account deficit in the u.s.. goldman looking to the euro as an opportunity to refresh dollars given europe is showing signs of getting the covid situation under control, so goldman or casting the currency will climb to want to 121 and could test 128 in one year. haidi: the dollar could be using -- losing steam when it comes to this rally, yelled falling, treasury showing signs of fatigue. sophie: early in the asia session we see treasury futures tech higher. barclays saying to aggressive

francine: before archegos, you had a possible loss from greensill.working with the administrator of greensill. we have brought back 5.4 billion in cash. we have put visibility for a large portion of the remaining positions. there are three more distinct positions which we will work through over the next few months and quarters. we are not planning to do any form of step in. we are clearly focused on getting the cash back to our investors. that is our priority. francine: because of these incidents, do you see further personnel changes? thomas: no, we do not see further personnel changes at this point in time. we are doing an investigation. the board is doing an investigation, and we will inform about that outcome when we are ready to do so. anna: that is the credit suisse ceo, thomas gottstein, speaking to francine lacqua. we will bring you more of that interview throughout the day on bloomberg tv. they are taking capital raising off the table. some analysts suggest they may have been successful in that. that will be diluted. as we hear from analysts

people are focusing on the archegos loss.is we are looking for perfection and looking for any holes in that assumption. how much are we baking into the valuations we are looking at? jonathan: i think a lot of people did that with goldman earlier this week. just saw the numbers and were like yeah, ok. monster upside surprise from goldman. some of these numbers have been tremendous, including morgan stanley. but it is that loss and the lack of clarity we have had around those numbers. we will keep an eye on that story. i need to stop doing this because this stock has been all over the place. lisa: i think you should do it in a horseracing voice. jonathan: i can do that really quickly. i am not going to go -- not going to do it now. mark cabana joins us now, bank of america head of u.s. rates strategy. some further progress. the fed will define them. are we there yet? mark: i don't think we are there yet, but i agree, i think they will be the three most important words for financial markets over the next quarter or two. it is su

of the stocks in the archegos archegos mess.don't is falling along the shares. these are said to be worth about $2.1 billion. in appears they have been yet to unwind their positions. jp morgan has said the downfall for archegos would result in about 10 billion dollars worth of losses. credit suisse identified as having the largest loss. bloomberg news is also learned that the bank is planning to slash the amount of money set aside for employee bonuses by hundreds of millions of dollars. and this will be used to reduce some of the dent from archegos to a spot of line. bloomberg has learned from people close to the matter that there are cuts to a pool of staff compensation. and other one-off items would come to about $600 million. that would go to the underlying profit. back to you. shery: up next, an exclusive interview with the central bank president of brazil. his outlook for recovery rates and more. this is bloomberg. ♪ total gym includes everything you need to get into the best shape of your life. for every body at any age. i

archegos did not appear to have ever filed a 13f or a 13 b.hey amassed a huge off book position including an estimated $10 billion wager on viacomcbs. the blowup left many banks holding the bag and regulators asking significant questions. we know the sec is under pressure from capitol hill in wake of the kim stock mania -- wake of the gamestop mania. it appears they are moving swiftly on this front. shery: after the blowup, it appears there has been much focus on the prime services risk unit. give us insight into him and what we can expect. su: executives had given the point salesman for archegos capital the new responsibility of overseeing risk-taking in the broader prime brokerage unit. this is according to people close to the matter. those collapsed spectacularly. they crossed credit suisse's loss of 4.7 billion. the salesman had apparently nurtured the relationship with archegos. he has stepped down. it leaves a lot of questions. credit suisse has replaced a -- or is engaged in sweeping shakeup of the executives involved in any kind of ris

the surprise around archegos, and the size of the hitch. an impact this will have on the business. that did seem to be a surprise to the markets. down by 2.9% for the shares. a surprise to the upside for bp. up by 2.75%. let's get back to some of the geopolitics around europe. reo draghi has just a few days to define what he calls a historic plan to rescue italy's economy from the pandemic as a government prepares to invest 261 billion euros heavily backed by european union funds. let's get some thoughts on the significance of all of this with esty dwek. we heard there from mario draghi yesterday. and a recent guest says the size of the plan from italy is staggering. that he wants to see that this is not just going to support the short-term but have long-term impacts on the prospects for the italian economy. are you looking for the same thing? esty: absolutely. there is a lot of benefit of the doubt for mario draghi from markets and investors. we know he is working to have a plan that can bring reform to italy. he really has an opportunity,

shery: the latest on archegos. our next guessing this is not the only risk out there, there are more market risks. other than archegos. sarah hunt joins us now. always great having you with us, this of course coming at a time when we see a huge rally across the market. so, when you have such big unknowns that can have these huge repercussions, big banks like credit suisse, have you had to get this? >> i think the most difficult thing is in a situation like this, you clearly have a problem where you don't know how many other places are doing something similar. so, every time you have had some sort of financial crisis or concern about a crisis from market activity, the question is is archegos doing this, are there others that were doing this with a similar leverage issue going on that we are not aware of? viacom stock moves higher. why is it moving so much higher than everything else? then it was, that fall, that is very difficult to guard against. to the extent that you can now look at the top of the shareholder lis

they posted an unexpected $774 million hit from the collapse of archegos.alph hamers. take a listen. >> we are very disappointed at the situation. we are taking it very seriously. we are reviewing the different prime brokers' relationships. we are viewing the risk management process in order to get the lessons and make sure it does not happen again. manus: will you reduce leverage and reassess how you and to the prime brokerage -- land to the prime brokerage -- lend to the prime brokerage and family offices? ralph: there is two elements we are picking up. their first one is the level of transparency in some of this

we are keeping an eye on any archego related moves. credit suisse set to detail losses this tuesday. we will get an update from japanese bank nomura. given the location for emerging markets, the dollar holding onto overnight losses. shery: with the dollar falling and treasury yields stabilizing, emerging market currencies gained. next guest says it is especially dynamic. joining us as the jaguar growth partners ceo. always great having you with us. this coming at a time when we are seeing em stocks and currencies in red the firtash in red. the first quarterly decline in a year or so. is this a buying opportunity? >> we believe so. we have been long bullish on growth markets globally. particularly latin america and asia, particularly brazil, mexico, china, india. we are particularly positive as it relates to those markets. shery: in latin america, in today's session with this grr function on the bloomberg, you can see that. how much will president biden's massive infrastructure program -- but also help other emerging markets? >> i think

and charlie gasparino has exclusive details on archegos' bill wang and how he's fighting back against rumors that he's been using the same collateral but with different banks, and the banks are furious. okay? obviously. but there's more to this story that continues to be the slow motion train wreck. let's first get to a fox business alert. as president biden prepares to update the nation on his target for adult vaccination eligibility, corporate america is kicking into high gear. today alone we've got these pieces of news: ford says a flexible hybrid work model will start in july. pwc, the accounting giant, will open all of its offices in september. and wells fargo has set a post-labor day return to office target. what does that mean for upward? this is a company that hooks them up with workers. it has the stock gains to prove how asking is successful its business model has been, upward shares have seen a 674% gain just the past year. upward upwork is the largest global platform for placing and hiring workers, and we've got ceo caden brown. all of this happening, some within about 45

this as losses related to archegos could amount to $4.7 billion.major overhaul, they axed the ceo and brian chin in the wake of the scandal. credit suisse has suspended its share buyback program and cut dividends and scrapped executive bonuses. the question for investors if this is enough to draw the line in the sand after the issues that credit suisse suffered. frank. >> juliana, this is a string of woes for the bank. can you put this in perspective? >> reporter: absolutely, frank credit suisse hit by a string of issues back in 2016, the bank agreed to pay $5.3 billion to the department of justice to resolve a case in mis-selling of mortgage securities. the scandals is the hiring of the private investigation team to monitor a former executive who moved to ubs the fallout of that episode would cost the then ceo his job. now credit suisse acted as adviser to soft bank with the 900 million euro investment before the collapse. the bank took a $450 million impairment charge on the holding of york capital management frank, this is the latest in the stri

x does not have any ties to archegos, to greensill.uming he is voted in, at the end of this month. thomas gottstein has said he will bring in a review of their strategy. there are potentially other places that credit suisse could be looking at to reform, matt. matt: all right, thanks very much. dani burger continuing to cover the credit suisse, archegos saga for us. it has now been two weeks since that story broke. and the cover of "bloomberg businessweek" really breaks down billowing, karen -- bill wang, karen archegos --who ran archegos, in terms of who he is, his successes and gigantic failure. i highly recommend reading them them probably being done with the archegos story. coming up, demand for chips is surging, but so is the industry's environmental impact. each new generation of semi conductors requires more energy, water and greenhouse gases to create. we will look into that story next. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." we are 41 minutes into the session and we are looking at kind

bloomberg's dani burger covering the continued fallout of archegos, archegos, archegos for us.g to speak to the spanish economy minister about the recovery plan, spain's vaccinations and how likely it is tourists will be able to go back to the beach. ♪ matt: welcome back to bloomberg markets, this is the european open. we are 30 minutes from the start of trading across europe. with a half-hour to go, what is on your radar? mark: as we talk about, there is a lack of dominant themes in the last 48 hours. indian assets open the door wider to qe they will do one trillion rupee of bond buying in the first quarter. this sounded exciting but they averaged 800 billion a quarter last year. i think the are b.i. was an excuse for the move. the real move is the terrible escalation in the covid-19 situation. their numbers have gone bad in the last few weeks. the seven-day average doubled in two weeks. they are not testing aggressively on variants. we do not know if it is a new variant. we know that a country that seem to show herd immunity has 20% of the world's population and is the world'

do they go with the archegos one-off hit, but the dominoes are starting to fall. >> taking a look atout, and also ubs, despite strong numbers, announcing its own surprise hits from archegos. absorbing a loss of over $7 million it, and is expected to see an $87 million hit in the second quarter. >> we are very disappointed at the situation. we are taking it very seriously, and we are reviewing the different relationships and reviewing the risk management processes to make sure that it does not happen again. >> where would you reduce leverage and reassess how you land? >> if you take the lessons learned often now, there are elements that we are picking up. the first one is the level of transparency and some of this business as well as the concentrated positions to leverage, so there is a combination of those. that is the big lesson learned here. it is not only that we should demand it and all bank should demand that, but also we should look at regulations to come in here in order to ensure that an event like this will not happen again. >> would you cut leverage to the hedge fund busine

rishaad: now let's get to the latest on the archegos aftermath. learning the ceo is facing tough questions from his own staff and investors about loss tied to a big implosion. there was a lot of anger, a lot of venting during this year's conference with dozens of his managing directors. su: absolutely. bloomberg has learned the global conference call with the dozens of managing directors took place late tuesday. it was part of crisis management. -- crisis management related to the archegos mess and it quickly turned contentious. the ceo was grilled about the exposure of the bank and credit suisse's profile and we are told the ceo did not give answers, but instead referred to the soon to arrive new chairman. he arrives later this month. as an opportunity to review strategy. if we review the year-to-date stock chart of credit suisse, you can see the shares are down some 15% year to date. it fell another percent in the latest u.s. session. that compares to gains by all the other rivals, given there has been a banner first quarter for dealmaking and m

marion: they announced this charge related to archegos. context, more than a years worth of profits. we will probably have a net loss with the first quarter earnings, that will be published in a couple weeks. that follows a fourth-quarter loss that was a surprise to investors. it is not looking good but analysts seem to say they are safer now with regards to capital. there were questions around capital being raised and whether regulatory capital erasure will decrease to the point were regulators will be concerned. it seems like they are safe. matt: they have had other problems. this is a one-two punch and heads are rolling in the c-suite. what changes are we seeing, and will it satisfy shareholders? marion: we are seeing a couple of changes on the executive board. the chief risk officer in the head of the investment banker both leaving. a couple other people are being placed in interim. we will see more permanent placements as the months come on. for the moment, it is the moves investors were waiting to see. i am not sure it restores confi

archegos ripple impact amid the sweeping rules. >>> speaking of archegos, the investment bank out with earnings this morning. squandering what would have been record-breaking quarter. how did credit suisse get it so long >>> and no spac slowdown a $2.2 billion deal with the focus on smart home technology. >>> and is it a bubble or a bangle or bright shiny thing? it is thursday, april 22nd this is "worldwide exchange. ♪ >>> good morning good afternoon good evening welcome from wherever in the world you may be watching. happy thursday i'm brian sullivan let's get to it. a check on the market and your money. the global markets are setting up the day dow futures are down a trend we have seen all week. not big moves either way up a little. down a little. dow futures s 27 the russell 2000 bouncing back off the best day in nearly two months up 2.5%. watch the dow transport. transportation stocks are a leading economic indicatindicat. that on pace now for its longest weekly winning streak ever that's right dow transports up 12 winning weeks in a row if you believe in the dow theory and you bel

archegos, it is all about that. this is bloomberg. ♪ ritika: let's check in on the bloomberg first word news. president biden will propose a large-scale tax increase tomorrow. he will also call for giving billions more to the irs to make sure rich people and large corporations pay all that they owe. it would raise the top tax rate to 39.6% for those earning more than $1 million. jp morgan plans to bring all of its u.s. staff back into the office on a rotational basis starting in july, cording to a memo from the operating committee seen by bloomberg news. the schedule will be subject to a 50% quepasa cap. -- 50% occupancy cap. the world's fastest-growing covert outbreak continues. andy reported -- india reported the sixth straight day with more than 100,000 cases, more than 197,000 in india have died. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. alix: thank you very -- guy: thank you v

octavio: they've said close to $5 billion for archegos.nk the bigger issue is there might be more of these lying out there, so there might be more skeletons in the closets. if this has been their approach to risk management, to take insane naked bets with hedge funds of this sort, there must be others. if they approved this, they must have approved some other crazy things. bear in mind, the markets have been really good over the past year. it has been quite difficult to lose money in equities over the past year. racking up these kinds of losses really makes you think, what happens if there's a correction in the market? what happens if the market goes down 10%, 15%? where is credit suisse going to stand then? guy: how much reputational damage has there been? this is what i am trying to quantify because this is going to bleed out into every aspect of this company's operations. octavio: i think there's definitely a big reputational risk here in terms of risk management. it is going to take a big, ongoing hit on their stock price, where invest

archegos used swap agreements.p agreements allow you to gain exposure to a stock while not reporting economic interests. the economic interest remains with your counterparty. if you are trading with goldman sachs, you would put up collateral, goldman would put up the leverage, but the stock you have leverage to would be reported by goldman. matt: when bankers at morgan stanley and goldman sachs are all hanging out in the eagle club, don't they say to each other hey, we gave bill weighing a ton of leverage. have you? erik: if bill ever found out about that, they would loose his business. the lack of disclosure among prime brokers such as morgan stanley and others is e central to the industry. this is what regulators are taking a look at. what is obvious at this point is a lack of what you just described. the prime brokers did not know what they were doing collectively. there is limited ability when you open a swap account for the prime broker to demand financials. each prime broker was, to a degree, operating in the

haidi: we will continue to watch the fallout from the archegos blowout.yo traders are reporting nomura has set up an internal team related to the loss from archegos. we also look at retail after the uniqlo owner reported a jump in profit for the fiscal year. the governor of tokyo is saying she will ask the national government for a return to stricter virus measures in the capital as cases continue to rise. officials fear a rebound in infections has begun earlier than expected. haidi: coming up, we will look at the transition of power in sing or, looking likely to be pushed back after the finance minister bows out in a surprise move. we will have details on what it all means and what is to come. haidi: there has been a blow to singapore's long telegraphed power transition with the man expected to take over the reins stepping aside. our reporter has the latest. this was a surprise move. >> it certainly was. finance minister heng swee keat has bowed out, saying singapore needs a younger leader. he wrote a letter addressed to the prime minister. he turned 60

and credit suisse tapping investors for cash to shore up the archegos loss while it struggles to retain key employees. >>> and president biden pledging to cut u.s. greenhouse gases 50% by the end of the decade the latest push to aggressively combat climate change. carl >>> guys, the latest "jeopardy" today, let's talk about it when did you get the news, and what's the shooting schedule going to be like >> you know, you tape five shows in a day so it's a long day. i'll get a chance, i think, there will be some rehearsal as well which is good because i will need every second of it, but you know, go out and do it, so i'll do it late next week but it won't air for quite some time and as you can see there, of course, i am, i'm sure many of the fans of the show, we know all of the other people but who in the world is that guy >> hardly. >> can't wait. looking forward to it so much. as you guys know, of course, i did compete, thankfully won, when i was on celebrity jeopardy, given questions and the great opportunity to host five shows and hopefully i will do okay. i've been watching a lot of t

run by a former hedge fund are -- archegos capital, run by a former hedge funder, who had been undernation by the sec on a prior matter related to insider trading. given the implosion of archegos capital and explosion -- exposure of credit suisse, and had caused many and is less -- many analysts to ask if there's a systemic problem in risk management. the moves we are here will be announced shortly and seem to indicate the bank itself also looking at that issue. haslinda: a new to billion-dollar dollar route of block trades shopped around by the bank, what does that suggest? su: it gets right to the heart of the exposure. those close to the matter say share offerings, large block shares, to the tune of $2.3 billion put out on the market in the latest u.s. session, and we saw the price of the shares drop in extended trading as the news hit that tape. we are told the offerings were large, 30 4 million shares in viacomcbs, 14 million shares of bit shop and 11 million of far-fetched limited also shopped around. this is a fraction of the total amount of block trades that rocked the market

we have to talk about what is going on with credit suisse and archegos.ting thing is not just that credit suisse finally put a firm number own what they expect the right down to be -- the right down -- the write-down to be. what i thought was interesting, we are a week and i have removed from that. the fact that they are still trying to unload these holdings shows how deeply it runs. tom: do we know it is credit suisse, or could this be a mop up from others as well? romaine: bloomberg is reporting that it is credit suisse. the fact that they were still holding the bag on this this late in development really says a lot about how much they got stuck with this. now a lot of people want a little more clarity from nomura because there's still some concerns here that there could be extra shares as well. tom: thank you so much. credit suisse with a bit of a lift this morning off of the swiss stock exchange as well. we had liz ann sonders on and looked at the equity markets. lisa abramowicz, what is so important here is not only the separation of full faith and c

romaine: we should point out, this is not just about archegos. you had the greenville fiasco which is unfolding a while prior to this. are there other names that we have been reporting on here bloomberg that might also have their jobs scrutinized? sonali: people we are looking for our lara warner, the head of risk. this is a matter of the investment bank, but also a matter risk management more broadly. there are a couple issues here. we are also watching paul, a big figure in the equities world. and what kind of responsibility they will be bearing out at the end of the day. questions remain on how to build these businesses once the key officials are out at these businesses. so we will be watching very closely for credit suisse's strategy moving forward. as he's building his new team on top of 18 he just built. -- on top of the team he just built. caroline: we have seen closures on easter market. we will see if we get any updates tomorrow. sonali, thank you. joining us now in terms of the market, katie greifeld is with us. looking away from the fa

archegos did not respond to my multiple requests. now, while those firewalls may exist between groups, the question now as we're unpacking what happened is who knew what when, and who should have known what and when. guys. >> exactly, leslie clearly some senior people or some compliance people maybe sit above all of those groups and restrictions and i think the key thing here for me is obviously brokers will tell people or advise people to buy a stock and it might go wrong from time to time, might fall after that. what's unique here is that those that were advised by their broker to buy contribs at $85, see within a day, not weeks or months, the stock collapse, not just fall a couple of percent, and due to a story that broker's company is very much at the center of. i think that clearly leads to some investors that bought at 85 likely to be feeling a little disappointed in their broker, maybe won't trust them as much next time they get a phone call from them. i think what adds to that a little bit, mike, is a secondary offering which

ro been a begins with the continued archegos fall out. credit suisse taking a $5 billion hit and top executives are out. encouraging signs for the economic recovery as the vaccine rollout. and senator mcconnell delivering a warning to corporate america saying stay out of politics. first we got an update today and firm numbers behind that. >> this is devastating the losses today took versus everybody else i know they are risk control has been --. one of those things unforgivivable if you don't know how to handle a busted client, then you shuttle be handling anyone this is just a really dark day for credit suisse. i can't emphasize this enough. lot of companies dealt with this firm j.p. morgan said we don't want to deal with these guys. they question the character. which i think is absolutely right. goldman, mosubst morgan stanley very very fast this is remarkable and i think credit suisse has to recompletely reevaluate them i'm not sure they know what they are doing. >> we'll talk about it more with david. but jim, yeah. after a few blocke

he coming up, more on the fallout from the archegos fiasco.. ♪ shery: an alert on the bloomberg right now. the japan composite numbers, pmi at 50.2, turning positive into expansionary territory since january 2020. the services pmi in contractionary territory, 48.3. it has been at the below 50 level since november 2019. we are still awaiting the manufacturer numbers. the composite is in expansionary territory. this at a time when we continue to see the expansion of infections across japan. we are waiting for the state of emergency declaration, the third since the pandemic. the composite entering expansionary territory, paul. paul: let's look at how markets are tracking across the asian pacific. we have the ek off by 1%. we had news from a company that makes small motors for optical drives, that stock off, a shade under 8%. australia, flat. an online retailer with disappointing third-quarter sales. we are seeing weakness across other markets. the kospi off 0.4%. new zealand is in negative territory. shery: nomura, japan's biggest broker, the fun

a $270 million loss is less than what we anticipated with regards to archegos.hiba on the way up, nearly 5.5%. was up about 9% at one stage. it has a significant stake in holdings, one at the moment under a bid from micron. 9.9% up. it is the biggest rally we have seen since february 2016. massive buyback taking place. 200 billion yen the consideration. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. haslinda: it is 10:29 a.m. in shanghai. the such -- the a sx benchmark index is up as it has into the four-day easter long weekend. rishaad: there appear to be souring relations between the u.s. and china forcing public opinion. the logic also -- offers a re-think of counterproductive po

this is all coming out about how they have been dealing with this archegos family office.g more information of how the bank is going to be looking at their risk and compliance functions. a lot of personnel changes happening this morning. the chief risk officer stepping down as well as the head of the investment bank. these are big changes. manus: yes. and dividend and buyback, buyback is gone, dividend is sliced. for income hunters, this is a blow. >> this is a blow coming us. we are also -- this is a blow, yes. the share buyback is being suspended. we also do not know whether capital, their capital ratios, will stick around. they said that they will manage to keep their targets but who knows if we start seeing some fallout from this and their supply chain finance funds. manus: we will see how the stock price opens this morning on the market. marion on the credit suisse story as it evolves. $5 billion drop in value last week. what will come today? what's boom -- it's bloomberg. want your workout to be easier, more effective, and more convenient? then you should try aerotra

what is not is archegos. this is the bank that dodge the bullet.nner headline here but i'm looking at a normal bank doing a normal report. we won't get that from selective competitors. jonathan: you will get it in the call. the call will be interesting. 13 point 3 billion -- $13 billion. the estimate 13.31. we get a picture early on of where the strength has been in investment banking trading. after q1 that can fade. lisa: this is an interesting moment because people got these checks from the government and put them toward paying down debt , towards not needing the loans these banks profit from. one thing jamie dimon said was that cards outstanding remain lower. even as spending increases deposits up 32%. jonathan: coverage continues right here on bloom -- "bloomberg surveillance." up next, goldman sachs on deck. futures positive on the s&p. from new york city this morning, good morning. this is bloomberg. ♪ ♪ >> we bounce back from the kind of down we had, you're just going to end up with inflation. >> i just don't think you can make a case for mu

shery: sue with the latest on the fallout from archegos.p next, president biden said targets for the rollout of covid shots in the u.s. and the u.k. plans to deploy its third vaccine. details next. this is bloomberg. ♪ >> there is a lot of good news but also some bad news. new variants of the virus are spreading and moving quickly. cases are going back out. hospitalizations are no longer declining. deaths are still down, way down from january, but they are going up in some places. shery: president joe biden warning of rising cases covid variants in the u.s.. for more, we are joined by michelle cortez. very soon, we could see all the adults in the united states being eligible to get a vaccine. >> president biden has moved up the date when it comes to allowing all adults in the u.s. to get access to the vaccine, to the middle of april. that is great news for people who are trying desperately to get in from these vaccinations. you still do need to get an appointment. there are many people out there currently hitting refresh over and over again

more fallout from the implosion of a kinko's capital -- of archegos capital.he swiss regulator is asked credit suisse to add more than $2 billion of capital. we talked with credit suisse ceo thomas gottstein. >> we are all responsible for what happened. it is now our job to take credit suisse to the next level. as i said, we have a lot of good elements in this first quarter we can build on, and together with the board of directors, we are doing this investigation, and we will build on that. ritika: meanwhile, swiss regulators are starting enforcement proceedings against credit suisse. joe biden is set to become the first u.s. president in 40 years to recognize a mass killings of armenians as genocide. that risks upsetting an already fragile relationship with turkey. the president's pronouncement will likely coincide with saturday's armenian genocide day. the killings took place under the ottoman empire, which later became turkey and various successive states. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists a

spurred by a 911 a million-dollar hit on the archegos blowup -- a 911 million-dollar hit on the archegos blowup. that's what we are talking about, yet on the other side of the story, record numbers. let's bring in sonali wasik. they post these -- sonali basak. they post these record numbers and nobody talks about them because we are so used to seeing these numbers. sonali: just amazing results in terms of trading and investment banking. when it comes to morgan stanley, we are still trying to absorb what $911 million means in terms of a loss tied to a civil client. to what extent will james gorman say what goldman sachs said, that these kind of events can happen the future? are we still concerned about excessive leverage and risk taking? morgan stanley, that kind of commentary matters more because they are big in equities and prime brokerage. but this quarter, i am already cutting text messages from their clients, and what they are saying is $911 million is larger than what was expected, but very small relative to the revenue base. lisa: that is exactly where i wanted to go, the traders i

coming up, the archegos implosion and the ripple effect throughout the world.ay of man group is going to be joining us. that is coming up. this is bloomberg. ♪ ritika: this is "bloomberg markets." coming up in the next hour, easyjet ceo johan lundgren. this is bloomberg. ♪ let's check in on the bloomberg first word news. i'm ritika gupta. day two of deliberations in the minneapolis murder trial that sparked nationwide debate over police use of force. a jury is deciding the fate of derek chauvin, the white former police officer accused of killing george floyd during an arrest. prosecutors say he violated department policy. his defender says the video does not tell the whole story. in germany, armin laschet has won the battle to lead angela merkel's conservative bloc in december's election. laschet is the chairman of the c du. he would likely continue merkel's moderate policies if he wins. authorities in tokyo have been urging a state of emergency just three months before the start of the summer olympics. global news 24 hours a day, on air and on bloomberg quickt

archegos, we are down to the last 3%. we have exited the positions.have raised almost $2 billion this morning, have taken action now, risk organizations, we have taken management changes. we have done quite a lot. still some work to do in the second or third quarter. we have taken a lot of measures. >> why did you arrive to the decision of a convertible bond instead of doing something else? >> we had conditional capital, that is the best way for us to raise the equity. it was important for us to get to 13% ratio, which we now have. that was important for us, to take the capital discussion off the table. >> what measures have you taken to reduce risk, especially in the brokerage business? >> we are going through the portfolio. our plan is to reduce leverage exposure by $35 billion by the end of the second quarter in this business. we will take further action in terms of control systems on the first line of defense as well at the second line of defense. >> before archegos, you warned of potential financial hit from greenville -- from greensill. >> we ar

say the sec is exploring how to increase transparency for the types of derivative bets that sank archegos. the regulator also faces pressure from capitol hill to shed more light on who -- more than a century after estimated 1.5 million armenian civilians were killed at the hands of the ottoman empire, president biden said to be preparing to declare the atrocities an act of genocide. the president is expected to make the announcement this weekend, joining at least 29 other countries including turkish adversaries russia and syria, who have already done so. the former police officer convicted of murdering george floyd is reportedly being held in solitary confinement for 23 hours a day in minnesota's only maximum-security prison. derek chauvin was placed in isolation over fears for his safety. he was convicted of murdering george floyd last may by kneeling on his neck for more than nine minutes. chauvin will be sentenced in june. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this i

more shakeup after the meltdown from archegos capital. the julius baer ceo, thanks for joining. i know you got to listen to what stephen engle was outlining. you see the risks from asia given what is going on with the crackdown in the technology space. does this where you about investments in china and hong kong, or is this potentially a buying opportunity? >> we think it is a buy opportunity because sentiment has become very negative in the wake of regulatory steps. we are concerned about the long-term consequences. essentially, what they are doing here will cap the upside potential and the valuation potential of such companies in the market. one of the reasons to be strategically about china is outside the u.s. it is the market where you are supplying to companies. have a track record of building those. medium term, the prospects are not so exciting anymore. all of this takes place in the context of a phase in china where leadership is focusing on risk in the broader sense of the term, having managed the downturn. annmarie: we had china pmi, a mixed picture. still signaling re

something happened with archegos.y is it from the people you speak with that we will see other types of incidents like this that roping more banks perhaps? marcus: there's already a couple of rumors about things that happened last night. there's other family offices which may be of -- i mean, this particular family office, it is a hedge fund. just relabeled because they can get out of different types of regulation. they exploited the system at the very weakness of what the system is supposed to spot, and they have managed to get extreme leverage and abused it. this guys a rogue trader in every sense of the word. let's hope there aren't as bad examples as this individual. nonetheless, there are going to be overstretched, overleveraged family offices which have got too much leverage, and this really ought to be a wake-up call after gamestop pushed all of those shortselling hedge funds the limit. it was a real lookup: january. i expect archegos might be behind some of those squeezes, but that is another story. really, th

and hedge funds family offices amid the archegos blow. happy friday. the s&p 500 pushing above the 4000 level. that is our mliv conversation of the day. how far can this stock rally go? look across some of the asia-pacific indices. chinese equities down. there were two inflation beats out of china having a negative impact on trade. we are going to have a weekly drop when you look at the oil market. the saudi oil minister saying we could be nimble with supply. and we do have the u.s. 10-year gilts at 1.6%. we have a resumption of issuance starting next week. the biggest drive for where rates will go is the fed which yesterday maintained its commitment to a dovish policy stance. dovish tone continued from jay powell. he played down the risk of inflation and pledged to get the u.s. back to a great economy. he also invoked a homeless encampment in downtown washington saying the recovery remains incomplete. he said the push to vaccinate people worldwide was important. >> what we have said about our asset purse is they will continue at the current pace until

>> the key there is going to be the outright exposure to archegos.bably the back -- the second-biggest one with exposure in the united states, after credit suisse. we have to look at how that is going to drag down employee results, fourth-quarter employee results is what we are getting later today. the consensus is, for profit to have pretty much remained stable, despite this one-time loss on these transactions. they have indicated that there could be a $2 billion claim from transactions with an unnamed client. that is, very much likely to be archegos according to market participants. for your earnings, ¥206 billion, may include losses at the nine-month results, actually pretty good. they were above can distance for nine-month. those losses and charges will likely be reflected in fourth-quarter numbers. shery: stephen engle, they will be speaking to elin stevenson after we break those numbers in a few hours. that will be add 2:40 p.m. in sydney, 12:40 p.m. in hong kong. breaking news at the moment, gilead sciences will be expanding availability of th

archegos we are down to the last 3%.ve exited the positions and we have raised almost $2 billion. we have taken action, we have taken management exchanges. we have done quite a lot. still some work to do in the second and third quarter, but we have taken a lot of measures. >> why do the convertible bond instead of doing something else? thomas: traditional capital is the best way to raise the equity. it was important for us to get to 13% he one ratio, which we now have. that was important for us to take the capital discussion off the table. francine: what concrete measures are you taking to reduce risk, especially in the prime brokerage business, besides tightening financed conditions? thomas: we are going through the entire portfolio. we have already started to reduce the risk. our plan is to reduce leverage exposure by 35 billion by the end of the second quarter. we will take further action in terms of control systems, both on the first line of defense as well as the second line of defense. francine: before archegos you

what did james gorman have to say about the archegos losses?ily office represented around 10% of their client base. these kind of losses almost never happen. we didn't even see this kind of loss during the financial crisis. they are not planning for major changes in their prime brokerage business due to this loss. in some ways, the loss made sense at morgan stanley relative to some of their peers because morgan stanley was the biggest prime broker to archegos. as we know from our own reporting, goldman had gotten in later on, so it makes sense that their exposure would have been less than morgan stanley's to begin with. he also called the sales of the stocks that contributed to more than $200 million of those losses is money well spent. alix: i'm sure, to get out of that and move on.aughter] sonali basak, things a lot for joining us -- sonali bassett, thanks a lot for joining us -- sonali basak, thanks a lot for joining us. joining us is chris difficult task -- christopher kotowski, oppenheimer senior analyst. christopher: if you look at the ea

the changes are largely spots of to the implosion at archegos. dani burger has been looking at some of the sec digestions. good morning. dani: good morning, manus. it is becoming clear it is a global regulatory effort. you just broke the lines that fit my -- finma is looking at archegos and confirmed they were already looking at them in response to greensill. on the sec side, these rule changes are much more broad. it is about disclosure changes. can they make sure they are able to see possible risks coming down the pipeline before they happen? they are looking at more disclosure around different derivatives. swaps, for example, what bill wong used to make his bets, do they need to disclose that more? and do they need to file more frequently? they are looking at short positions, saying, do managers need to disclose that? annmarie: that is a huge debate, the short position. how hedge funds going to respond to this? i can't imagine this is welcoming news. dani: isaac you are right. i do not think this is going to go through without heavy lobbying b

what sources close to cnbc said morgan stanley did in the leadup to that archegos capital trading scandalit's wednesday, april 7th, 2021. and you're watching "worldwide exchange" right here on cnbc ♪ >>> good morning to you. i'm dominic chu in for brian sullivan this morning. here's how stock futures are looking on this wednesday morning. you can see here, we're indicated just slightly here about 32 points higher for the dow jones implied. s&p up higher, 3 points and the nasdaq, 14 stable moves overnight stocks upping off a mostly lower session just yesterday the russell 2000 small cap, snapping a four-day winning streak, the s&p 500 snapping a three-day streak >>> in asia, hong kong finally open for trade after an extended holiday weekend in most asian markets, especially china, hang seng down 1% shanghai flat on the day, nikkei up 0.1% as well. let's spin that see what's happening in trading in europe the german dax is just about flat on the day. meanwhile, the ftse 100 up .75%. and mostly green in the early hours so far >>> some of today's top headlines, the uk is expanding its rollout

>> yes, they did although when i think of short squeezes now, i think of archegos which of course doesot fit what you're describing, it was an enormous family office, run by a gentleman who had a very strong reputation, at least for being a good investor, who, i don't know, kind of went crazy, my words, my words. >> well, we're finding out that credit suisse took a position in discover, they must have really liked it because they held on to it. >> listen, for quite a while, it was really working for discover and viacom for archegos and the reason we're mentioning this again is because it does appear that they have finally, finally sold out of everything that was left in terms of liquidating from the swaps and the positions that went bad, credit suisse with a write-down, fired people. one would have thought they were already past it, but late yesterday, we reported, oh, no, 22 million discovery c's for sale, 19% of the a's, and they got done, jim, it got done but again, you had plenty of people in there shorting the stock which finally gave it up as it went up 100% and viacom went up we

shery: su keenan with the latest on archegos and credit suisse.estment commission has commenced a civil proceeding against westpac. alleging the bank stole consumer credit insurance to over 380 customers who had not requested or agreed to by the policies. westpac has acknowledged proceedings and says it is carefully considering these claims and will cooperate. shareholders will vote on whether goldman sachs will publish a report on its arbitration policy for sexual harassment complaints on workplace culture. the bank is telling shareholders to vote against doing so. they are under scrutiny. many companies have abolished it. singapore-based startup raised money, and the company provides computer vision and machine learning. they valued the company around $3 billion. up next, exclusive interview with the philippine central bank governor. we will find out whether further easing is on the table. this is bloomberg. ♪ >> we are getting breaking lines . the pmi number at 50.5, slightly better than february, but marks two months in expansionary territory

still in crisis management mode after archegos.nnounced some personal changes. >> that's right. these instead of what credit suisse has already done, this is mostly concentrated in legal and compliance. they are not changing up any of their risk or prime brokerage employees, at least for now. they have a new general counsel, a new legal officer, chief legal officer. credit suisse bringing in a new general counsel. their former general counsel has taken over the role of compliance head. nomura, they are suspending a group of senior executives. that's going to be the head of prime brokerage, the head of the u.s. business as well as the head of equities. again, that's more similar changes to what credit suisse did. annmarie: thanks to dani burger. keep an eye on all those stocks. . that does it for me and daybreak europe. manus will be back tomorrow. the european open is up next. european and u.s. equity futures to the upside. the ftse 100 futures up 0.3%. there is london. cannot find the sun this morning. good morning. this is bloomb

but nothing flashing red, powell keeping up the bullish outlook and weighing in on the archegos controversya wide-ranging interview. >>> and top executives with the white house on the chip shortage microsoft, alphabet and dell amongst the companies that are set to join. >> guys, let's get right to the microsoft deal, jim. we will talk to nadella later in the hour and framing this as improving the ai capability across health care specifically and some other industry, too >> look, i think it's brilliant. the reason i think it's brilliant, there are a couple of companies that really have a hammer-lock on the data. they're epic and the other one, and epic says we will never sell, so it seemed like you could never get the data, and store the data, they have it and they won't share it but therefore microsoft has everything it needs to continue to be in control of all of what you need to know about individuals. it's almost as if they have, they really have what i regard as being a database that could really change the way health care is done so i know it starts as ai, but what it really goes to is

jonathan: expect the call on archegos later this morning.isa: that goes to the capacity to lend, their cash, their reserves. their incredible fortress is available, but who wants it? why borrow money if you can just use the money in your savings account? incredible dealmaking which we saw from jp morgan. jonathan: will the boom in this economy translate into a boo m for some of these earnings? goldman sachs up next, seven: 30 eastern time. jp morgan looked really good on the investment banking side of things. are we expecting the same thing from goldman? in the equity market, we advanced by almost 0.1%. yields a couple of higher on tens. euro-dollar unchanged. for jp morgan, negative one percent in premarket after a rally of more than 20% coming into this year. year-to-date, up by about 20% now, and down 0.9% on the day. that's turn to our colleague and good friend sonali basak, bloomberg wall street correspondent. sonali: that idea of loan demand being lower is significant, especially in mortgages, where you are seeing lower demand expected