when you look at credit suisse. chris we started to turn around -- credit suisse started to turn around earlier? >> fast forward a few years, and this is what you have with ubs with credit suisse. he is reminding investors he is done with the restructuring, the three-year turnaround. initially, some of the results were not what investors were expecting. he has shown he has delivered that plan well. the trading business has become somewhat irrelevant in terms of the overall group. i think he is saying is going to try to communicate more about over the coming months. francine: what comes after the restructuring? how does the chief executive now grow credit suisse? >> he is obviously pivoting towards greater growth in asia and china. we are seeing growth in wealth management assets persist. some investors, some clients are less confident. they have cut back on borrowing, and he is still able to grow that asset base, which points to more growth ahead. is $5 billionisse of operating income. maybe. barclays is at least do

>> well, essentially we like credit suisse. though just against the benchmark, for example, it's rather expensive we go neutral on that. but we still prefer the global narrative on banks and go for slightly more riskier assets, bank of santander, kbc is offering pick up in those names. so we go for slightly more global banks on the bank of santander side and banks that can diversify a little bit more around the business. in the end, if global growth continues, we hope that will provide us excess returns. >> certainly the big if on everyone's mind. tom, thank you pleasure to have you on the program. >>> sticking with the banking sector, let's get the view of shares in standard charter which are trading near the bottom of the stoxx 600, off more than 3% after the uk bank did report a 23% rise in underlying pretax profit for the first half of the year but they did say it remains vigilant to the impact of tariffs introduced between china, the u.s. and the eu the lender says its direct exposure to the trade tension is limited and it

straight to the news coming from credit suisse. franc's, a swiss beat on the estimate of 5.35 billion swiss francs. coming it at 1.3 billion swiss francs. pretax,uarter adjusted the number coming through -- 1.2 8 billion swiss francs. 1.06t on the estimate of billion first francs. the global economic outlook and thesitive second quarter is coming through at 12.8%. of this, allw all the commentary on real-time in this earnings release from credit suisse laments the tliv blog. markets iss on the ieaking around the margins, flex ability on bond operations. the markets have read this as a dovish deciduous. the yen is following in the dollar strengthening but now unchanged. the market digesting the news come at a fighting where we go from here. the 10 year treasury yield because we knew whatever the doj when did would have repercussions. we have seen the 10 year boj yield dropped significantly. we are down about 10 basis points, or basis point earlier with a 10 year yield retreating even more. 2.944%. weakness in the asia session, japan

caroline: that is the credit squeeze -- credit suisse ceo.onnie: first word news from kailey leinz good kailey: the u.s. and china trying again to avoid a trade war. bloomberg has learned that steve mnuchin and the vice president permit of china are having private talks about ways to restart negotiations. the next wave of u.s. tariffs is set to kick in as early as tomorrow. north korea reportedly building new intercontinental ballistic missiles, just weeks after the summit with president trump. that is according to the washington post, which sites u.s. spy agencies. the u.s. missiles are being built in the factories that made the first rockets capable of reaching the u.s. in alexandria, virginia, jury selection begins today in the trial of paul manafort. it is the first courtroom test for special counsel robert mueller's investigation of russian meddling. the trial has little to do with the vote. fraudaccused of tax related to money he made while working for the former president of ukraine. and president trump taking aim at fellow republicans

covering credit suisse. talk me through it. what have you got for credit suisse? quarter net revenue, what a beat it was, estimates were for 5.30 5 billion. their key international wealth management unit as well as the international bank posted higher-than-expected earnings. he was saying it was the best quarterly profit in three years. results were in line and must divisions or they beat except for the global markets trading division. guy: the market open is next. this is bloomberg. ♪ two, down and back up. our phones are more than just phones. they are pocket sized personal trainers... last minute gift finders... siri: destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. the big picture story coming out of the boj. turkey will be the focus of the next half hour as well. the nikkei closin

withwood is still with us credit suisse. 'll get the chart up which perhaps what some people call another warning here for emerging market. it's bloomberg economic credit impulse. the bottom is actually the panel.in the top which some people sigh when you look at this, it might be really bad. you're saying we should be expecting the opposite? think the latest comments from the pboc, particularly as relates to monetary policy easing on thee austerity that we've seen over quarters.ouple of there was indications from these comments that perhaps leveraging have achieved its initial goals. some stability might be expected. i don't expect them to substantially ease. tightenthink they will material. we're get into period credit the time in china for being. i think that's reflected in well.as thesis is growth. seenr example, we've in growth.ershoot within the detail it eachs that overshot.s possibly undershot.opeans are we've seen some mean reversion. europeanle anticipate growth will accelerate and the u.s. will remain reasonably mo

coming up, credit suisse gives investors more reasons to stick around.e discussed their second quarter next. discussbloomberg -- we their second quarter next. this is bloomberg. ♪ > emma: this is bloomberg daybreak. hour, danan the next peterson, citigroup global economist. this is bloomberg. alix: we turn now to wall street beat. first up, credit suisse's wealthy win, offsetting trading weakness at the swiss bank. uncertain martin condition -- market conditions cloud -- outlook and finally tens and -- are the best days over for tech stocks? david: joining us now is lisa abramowicz. the not, credit suisse do as well in trading but they did really well in swiss banking and private wealth management and you talked about why -- and they talked about why. have inverted those proportions and we are primarily serving -- when they create a new product, we will typically raise $2 billion. that is a very profitable business and is driving recurring income which is really high-quality revenue. david: ultrahigh will people. lisa: who doesn't want to manage money fo

david is going to stay with us. , head of technical suisse. at creditig upside miss on the inflation data coming through. , 15.39 waspi number the actual number. the survey was 13.9, it is a big move on the upside. from a producer price point of sow, it costs up 23.71%, some really big upside numbers been generated from a turkish point of view, and that is having an effect on the currency. we will talk more e.m. this is bloomberg. ♪ ♪ guy: welcome back. a bit of breaking news. let me give you the details, glencore is reserving -- reversing its chair price move. a u.s. ahas received department of a justice subpoena related to money laundering. the subpoena relates to nigeria, the depend -- the democratic republic of congo, venezuela, and it is dated july the second. it will be interesting to see where this goes, but certainly it is going to be something that investors are going to be focusing on quite carefully. d.r. congo, venezuela certainly of interest. let's use that as a tangent to go off on a talk about what is happening in the metals markets. we h

francine: why do you prefer credit suisse to ubs?we like the valuation differential between the two. they are not wildly different. i think credit suisse will be getting more of their income, private banking come, as a percentage total from asia. there too.ty strong they trade at a substantial premium to credit suisse. we think it is undeserved. tom: i want you to give us a view strategically on how a busted bank turns it around. bring up the chart on deutsche bank. this is a next ordinary chart of failure going back to 2008. i look at the moving averages. all you need to know is that this is beyond elegant. the mathematics of this chart, the timeseries order of this trend is just shocking. david, how the universe this horrific trend if you want to do right by the employees and the shareholders? david: i think what someone has to do, what the leader of this business has to do is carefully comb through the various business segments, the various business areas and see where do they have a competitive advantage, and why? where these bus

in the case of this fellow and credit suisse -- at credit suisse, there was a pattern, apparently.a lot of stuff was tolerated in the past. alix: we are talking about a senior banker over at credit suisse. there are some reports that behind the scenes, there were some stops and starts. it wasn't as clean-cut as we might think. >> this is not going away. david: there's always the cover-up, not the crime. -- it's always the cover-up, that the crime. -- it's always the cover-up, not the crime. alix: opec seeing enough rival supply to meet oil demand growth in 2019. those supplies are growing the most in five years next year. byy say oil demand will rise -- with non-opec supply. wonder, if you have rival supply meeting demand growth, what does that wind up cutsing for opec and opec re-pumping? notd: going away from $80, toward $80. president trump walking with president erdogan of turkey. much more coming up from bloomberg. ♪ david: a shot of the family photo being arranged in brussels. these are 29 leaders of nato countries with jens stoltenberg, the director general. we've seen presi

this way, rbs, barclays and credit suisse will report for the second quarter.n, good to see you. thank you for coming in. what can we take away from the earnings. >> in the u.s., decent trading, equities a strength. particularly the friends, the underperformers year-to-date. two q consensus has come down. if they cannot beat now, they will continue to trail for quite some time. >> what will be the big focus that we will hear from barclays, credit suisse. socgen -- and we saw ubs miss. part of that was a one-off. they have an opportunity to make a nexus to -- an extra step. that 30 billion pounds paid out so far and in june, people said, hang on, there could be a next her 20 billion pounds -- and extra 20 billion pounds. ra: are you constructive on banks? >> at the moment. q, we saw -- the top line has been disappointing. one q was disappointing for trading. i will be disappointed if we are disappointed for this quarter. they should have gotten the message is more right. they can't keep blaming europe are being soft on the u.s. nejra: do you prefer the u.s. over

credit suisse shares rising after a second quarter be. at.e with the ceo. >> the core of our performance is driven by our court -- which is growing very nicely. for more, jp joins us from frankfurt. talk to us about the inflows, it seems to be the focus really paying off here. jp: this quarter was very good and the co can be very pleased with the bat and i think you heard that earlier this day. the bank exceeded estimates on the top line and on the bottom line. the only thing to add is to say the estimates were not demanding, but a pretty good quarter and it is paying off the strategy they have initiated appeared caroline: how will the bank deal with excess capital? jp: that is the question that came up in the analysts' call. so the bank was very cautious on saying anything more detailed on potential buybacks, but certain analysts note that the decision to do buybacks later this year, maybe next year -- the bank announced it would do an investor day in december, so this would be a good point to announce anything they want to do with excess ca

scarlet: the credit suisse ceo speaking earlier on bloomberg. more profit than expected in the second quarter. this is bloomberg. ♪ scarlet: this is "bloomberg markets," i'm scarlet fu. lisa: i'm lisa abramowicz. time for the bloomberg business flash. profit roseer fourfold at bp, the energy company cashed in on surging oil reinsured that investors of financial strength after bp announced the biggest deal in almost two decades. the company agreed to buy bhp's shale assets for $10.5 billion. a big transaction in the real estate business, or feel as a management agreed to buy ford city realty trust for about $6.8 billion. in springfield second large realty transaction this year and it marks the firm's real estate g -- the deal is valued at $16 billion. procter & gamble is feeling the heat from new competition. pursued-products giant quarterly sales of missed estimates and rival products include divers from amazon and kroger's of razors. p&g is dealing with higher commodity costs. that's your business flash update. pot profits. why investors once l

the head of strategy and research at credit suisse joins us now.romsed on the president trump this morning and his statements around brexit. give us your thoughts on the latest on the brexit conversation and how much that is influencing your asset allocation to the u.k. when we look at u.k. assets, whether these are or pound, weilts, have to say a lot of these assets have been depressed by the political risk and the whole political discussion around brexit. the fact that the u.k. is now moving, apparently, in a more clear way to a soft brexit means that the u.k. economy is likely to see less headwinds and for example, with respect to the pound, which is one of the most undervalued g10 currencies of the moment, that would be .ositive for the pound when you look at interest rates in the u.k., they are so low end because of all the risk premium, because what is being priced in in terms of negative impact of brexit on the economy, should that alleviate u.k. yields areld move higher and we also positive on the u.k. equity market, which has defensive qua

when we can look at something like credit suisse where we have seen this improvement and there is a lote visibility and a very attractive price. mr.ou and i know that diamond has a collective memory of acquiring other assets on the cheap. sometimes at gunpoint. that would be called bear stearns. he is not at gunpoint now. if it comes out there is a strategic interest in jpmorgan here, explain why mr. diamond would be interested in affecting some sort -- form of ownership of this german national bank. he didi would hope that not get some form of ownership. i think, if you look at jpmorgan's business, it is so strong and getting stronger and why ruin that? why still defeat from the jaws of victory? there is nothing in there they do not have. >> on a book basis, a quick look in the book, it is at 0.33. he could buy this thing on the the newarkring operation to german -- two jpmorgan and help the german government use -- move this turkey forward. >> you have to look at the cost of integration and what businesses they are giving up. ifpaper it looks like deutsche bank is trading at a third a

over twenty seventeen report from credit suisse found that people on the bottom fifty percent of the income scale on less than one percent of global wealth got that fifty percent of lower income folks on less than one percent o.-m. g. . turning back to the u.s. for more granular view of the problem the pew research center noted late last year that the so-called great recession of two thousand and seven to two thousand and nine further exacerbated inequality by race gender and income as one of most trusted analyst of demographics polling and policy in the united states using figures from the federal reserve they found that among americans poor and middle class the gap between white households wealth and black and hispanic households increased in the wake of the great recession and twenty sixteen white households in these brackets had four times the wealth of comparable african-american families and three times the wealth of hispanic households interestingly pew did find that among lower income households white families lost more wealth than their african-american and hispanic peers. r

twenty seventeen report from credit suisse found that people on the bottom fifty percent of the income scale on less than one percent of global wealth got that fifty percent of lower income folks on less than one percent o.-m. g. . turning back to the u.s. for more granular view of the problem the pew research center noted late last year that the so-called.

and poverty on the other side of the proverbial calling a november twenty seventh report from credit suisse found that people on the bottom fifty percent of the income scale own less than one percent of global wealth got that fifty percent of lower income folks on less than one percent oh m g. turning back to the us for more granular view of the problem the pew research center noted late last year that the so-called great recession of two thousand and seven to two thousand and nine further exacerbated inequality by race gender and income as one of most trusted analyst of demographics polling and policy in the united states using figures from the federal reserve they found that among americans poor and middle class the gap between white households wealth and black and hispanic households increased in the wake of the great recession and twenty sixteen white households in these brackets had four times the wealth of comparable african-american families and three times the wealth of hispanic households interestingly pew did find that among lower income household white families lost more wealth t

and poverty on the other side of the proverbial calling a november twenty seventh report from credit suisse found that people on the bottom fifty percent of the income scale only less than one percent of global wealth got that.

twenty seventeen report from credit suisse found that people on the bottom fifty percent of the income scale on less than one percent of global wealth got that fifty percent of lower income folks on less than one percent o.-m. g. . turning back to the u.s. for more granular view of the problem the pew research center noted late last year that the so-called great recession of two thousand and seven to two thousand and nine further exacerbated inequality by race gender and income as one of most trusted analyst of demographics polling and policy in the united states using figures from the federal reserve they found that among americans poor and middle class the gap between white households wealth and black and hispanic households increased in the wake of the great recession and twenty sixteen white households in these brackets had four times the wealth of comparable african-american families and three times the wealth of hispanic households interestingly pew did find that among lower income household white families lost more wealth than their african-american and hispanic peers. reports a

caution remains, credit suisse expects further declines over the coming weeks for chinese stocks whichhe most in two years and monday. like rock has downgraded the country's equities giving volatility to trade ray asterisk. ramy: we know with emerging-market stocks of they have gone on a dip, is it now something that we might be seeing a buying session or rebound? bei write , it could premature but there could be several technical indicators, that could the near bottom after the worst losses in three years. as you can see on the chart on the terminal, they are resisting the onset of a bear market. after the biggest to date gains in five weeks and after the loss from the january peek at under 16%. arkets may be considering trace back that is negative for the dollar and good for em assets and that has made july a good month so far for em traders after another signal that selloff may be overdone. some voices are chiming in. goldman sachs said the bearishness for emerging markets is overdone as growth prospects stabilize. ramy: thank you. president trump is said to have decided which judge

credit suisse has boosted its price tag with a new target implying an 18% upside from uanday's closeo 800 y for the share price this year. focus this year. 26% sincehas lost resuming trade last month. lastly, we have xiaomi in the spotlight. chinese regulators look to ban investors from buying certain hong kong stock, and that decision is another setback for xiaomi to attract local investors after delaying its issuance. the stock is up just over 26%. thank you very much for that. first word news here, looking at what is going on with xiaomi, one of the stories making headlines. here is yvonne man. yvonne: chinese investors trading shares of dozens of foreign companies, including the to --ived voting rights waived voting rights. it was the first company to list in hong kong and it postponed issuing cd-r's due to sluggish market conditions. theresa may is defending her plan for leaving the e.u., calling on voters and politicians to rally behind it or face no brexit at all. she insisted she will not compromise the u.k. national interest in negotiations. boris johnson and david davis res

head of asia asset management at credit suisse.ere wondering, that was his first ever tv interview. what you're looking at here was the conversation we had with laura fitzsimmons. awyer is from j.p. morgan. lots ahead. see what's happening across your money. this is bloomberg. david: you're watching "bloomberg markets asia." the big talking point, tess la, the company halting some model 3 production days after reaching the target of 5,000 cars a week. this comes as analysts questioning the company whether it can sustain high output levels. we'll see. joining us out of singapore with more on the story, the question i have, can the company, tess la, afford to do this at such a crucial time for the company? >> hi, david. yeah, um, the production pause tess la has taken right now in california shouldn't be a major concern for shareholders. it shows that elon musk has confidence in his company. it's pretty typical for carmakers to take a break at some point in the summer. facilities need maintenance. their employees need a break. obviou

that was from the credit suisse analyst.t looks like a big number but the company should be able to withstand a lot of them. many could be repealed and reduced. how much do pharmaceuticals offset this? a have the second-best sales growth of any large pharmaceuticals companies. when you look at the consumer health division, that makes up less than 18% of their revenue. it is the smallest portion of their total revenue. pharmaceuticals make up almost $10 billion. eight years ago or 10 years ago consumer health made up about a quarter. it has been losing and it will bode well for the company. we will get earnings from them on tuesday. , andgine we will hear more some questions on what this means for the company's financials. vonnie: taylor riggs with the stop of the hour -- stock of the hour. mark: time for the bloomberg business flash. alibaba founder jack ma lost his position as the richest person in asia. the chairmaned by of india's conglomerate reliant industries. according to the bloomberg billionaires index, he was estim

credit suisse has done the opposite citing worsening's worsening's revisions and widening credit spreads. over large caps, small caps is around the wider sense 2 -- since 2011. the latest indications on the global economy point to a recovery, a little bit frightening in the u.s. because of the turbocharged tax cuts. the economy continues to add jobs. europe is more next. a pot -- mixed. china's growth has been more than expected -- expected.re than these are pm number. eurozone is the purple line, china the yellow line. pmi data always worth keeping an eye on. , for easternets europe, the worst should be over according to a forecaster. political risk, global trade tensions, u.s. monetary policy tightening have left most em currencies oversold and undervalued. has a currencyst forecast that proves the most accurate in the second quarter, eastern european economies he says offer better credit ratings and less severe eternal and balances, meaning the region is lower investment risks. this is the dollar against eastern europe and african currencies in 2018. except for ukraine, all of the cur

will this week spell equally positive momentum for the likes of credit suisse which is coming out with its numbers. we will keep an eye on those earnings. i want a quick look at what's happening in terms of the other sectors and other areas. will have to look at heineken in a moment. it was an underperformer on the back of its numbers. i'm looking at the fx rates because we are seeing dollar weakness. the e-krona, look at the out -- the krone, look at the outperformance. exports in the consumer driving the swedish economy. union: the usa european look to be stepping back from the brink of a trade war last week. tensions between the u.s. and china continue to simmer. for more on where global trade tension stand we are joined by adam tooze. a new book coming out. written.er books he's which won several prizes. he is with us in studio. i want to begin with a quote from an op-ed. "normal talk about globalization and competitiveness is directed inward at the nation. taking the idea and pointing it out work, calling out his suppose it foes. in doing so he do liberally fosters economic nation

are talking about 13 day record slide, all of this on upgrades for capital one financial over credit suisse, shares were upgraded on improving credit shares. shery ahn: thank you. global stocks starting the second half of the year in the red. research ceo and director research, great to have you with us. the trade tensions are affecting the level markets, is it safe to assume the u.s. will continue to dominate the markets? got to tell wins for the last couple of years. the headaches will be some of the slowdowns we have seen overseas. china, weke japan, corporate --f the second is those in the u.s., are way too aggressive. the hurdles are let tougher with good profits but if the hurdle rates are too tough, you may have -- vonnie: i'm fascinated by your digital deflation index. tele's how this is compiled and what it tells us? ismotivation behind it started with an influence or a debate about how much damage u.s.hit the economy in the and globally, and each of us when we went through a net -- an airport today, more tablet serving drinks than bartenders. deal when itmajor comes to technology

but we have seen it and rivals like credit suisse in recent times and also are cleese going through atructuring. vonnie: the beat was driven by a gain in the investment bank i merrily due to more money, is it winning that battle? it feels like that is where the banks are trying to gain market share. >> funny enough, ubs is trying to gain market share in the u.s. i am not sure it has done very well in this quarter. >> in general -- >> in terms of trading -- in general terms, i think it is doing quite well in terms of the investment bank. the investment may -- bank is doing well, great performance. area wherehe investors are focused on today. they are focused on a giant wealth management unit in the merger of the international and u.s. operations, cost savings and perhaps increased revenues that may come from that. however well the investment bank does, i do not think that is a thing especially moving the stock rice better wealth management definitely will do. vonnie: thank you. ahead, alphabet spells out a huge earnings data, what some analysts call a home run quarter. the stock of the

morgan stanley and credit suisse has taken similar steps. and shares of -- fell today.e automaker admitted that emissions data with fake this year during inspections. the government said the inspection process was faulty. and it is the final straw for starbucks. the world largest coffee chain said by 2020 it will eliminate single use plastic straws. moreucks has used than one billion plastic straws for years and will replace them with material ones, and recyclable strong list lids -- strawless lids. that is your bloomberg business flash. nejra: let's take a look at where markets ended the day. equities, all higher. gaining. 600 and let's switch the board and look at fx. the pound has been very much in focus. we have seen it weakening after boris johnson resigned from theresa may's cabinet. the pound is weaker. euro flat after strength earlier. and feels pretty much unchanged, even going lower after it was higher earlier. that is what the 10 year yield is doing. down one basis point. we were at 1.3 earlier. bundenure -- ten year yields are higher by eight basis points. t

the stock closed at 7.75 credit suisse just put a price target >> guy was right about. >> since that kwlifs up 40%. >> we didn't really crush it, we got it right in retrospect, but the steels were under a lot of pressure there march into april. they're probably being aggressive, the quarter was good, i say stay with all the steel names. >> cleveland cliffs was a home run. give us another pitch? >> it's all baseball, right? >> when i was a kid. i was a kid once, hard to believe, i liked playing with trains, lionel trains. if you look now, csx all time high norfolk southern all time high what do you do you go young stream. slide it, earl you go to trinity industries, they service the rail sector, they report after the close on the 25th 9 times trailing, 20 times forward. the economy continues to grow, what does it mean? rail demand continues to grow. i think it's going to show itself this quarter. what does it mean? they believe in their company. i think they've paid a dividend the last 217 quarters, great balance sheet if you believe that the economy is doing better if the railroads a

domino's pizza down by 9% amount cut from credit suisse cutting them to underperform from mutual citing higher labor costs and the government inquiry into the franchise industry in australia. a lot of pressure across the board. australian and new zealand markets are higher. anna: thank you. the latest on the asian equity session. -- itsays it will not will have to fight back if the u.s. goes ahead and impose a -- imposes tariffs. another government official said of tariffsposition on chinese exports will not only hurt china but the u.s. and the rest of the world. the majority of the goods are produced by foreign companies including american companies. joining us now tom mackenzie. this is the latest, this is the latest reassertion of the messages coming from china overnight. we will not fire first in the trade war in their words. tom: absolutely. 's lightning -- slightly heartening of town but the rhetoric seems to be sharpened up. the chinese said we're not going to fire the first shot but we will fight back to protect our interests accusing the u.s. of starting a trade war and as you

more upside i don't own it but as you know i've owned it for a good part of 2018 you've got both credit suisse with a 155 target, piper with a 160 target yesterday we had aggressive buying at the 144 strike in the calls. so take that and i think it goes significantly higher than where it is here. >> wally wants to know the trade on visa ahead of its earnings. >> i like this company i think it's one you want to own for a couple more years. i wouldn't do anything other than hold it if you own it, and buy it even before. >> thanks for your questions, keep them coming send them to cnbc.com/halftime there you go you can tweet us as well @halftimereport use #askhalftime >>> next, from one billionaire investor to another, warren buffett's words for lee cooperman. >>> plus, your final trades. "halftime" is back in two minutes. ♪ hawaii is in the middle of the pacific ocean. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our e

harassing several women in 2005 and 2006 >>> the other big individual stock stories now include credit suissehares of the bank are higher. second quarter profits more than doubled gapes for the company's three-year overall that offset weakness in the wealth management business >>>sony's first quarter profit tripled on network gains and the video game business and sony is lifting the full-year guidance for its gaming yune. the upcoming title marvel's spider-man could boost profit more. >>> and samsung reporting its slowest profit growth in nearly a year in the second quarter shales of the s9 smartphone missed targets samsung giving little hope of a turnaround, lagging stiffer competition in the second half of the year. >>> we are just getting started on a busy tuesday. on deck what do you think about a 300% profit pop? one energy giant just had that kind of a monster quarter. we'll tell you how that stock is reacting >>> and starbucks is looking to deliver. what the chain is doing in asia that could be a game change ner their br changer in their brewing coffee wars the smoother the skin, the m

closing higher to finish after a string of strong earnings reports, including upbeat results from credit suissey're all finishing the month of july in positive territory, that breaks a two month losing streak you can see the performance of the euro stocks. not as good news on data front official figures show the eurozone economy grew 1.4%, slowest pace in three years, significant contrast to u.s. pace of 4.1% dollar stronger against the euro 1.17 is what it will cost you. european union negotiator softening his opposition to british prime minister theresa may plans for the london financial services industry. deutsch said they would move activity from london to frankfurt, concerns that it could erode london status as key financial hub. weak bond yields hitting a high after they still face a struggle after bailouts the imf recommended greece consider boosting capital and other discretionary spending to ensure sustainable growth going forward. still, yields below 4%, long way from 7 and 11% yields we used to see. the turkish lire after a court rejected a report for pastor to be released from house

credit suisse points out the chinese courts move quickly. the fact that they are delaying a decision could be a sign they are constrained for fear of escalation. morgan chase reporting earnings later this week. twitter taking a hit, plunging as they suspend 70 million accounts in may and june. they are considered to be fake accounts, but analysts say the stock is up 94% this year to put it in perspective. groupon soaring as it looks for a buyer. let's go to the bloomberg gtb's, where you can find our charts. this one is earnings growth and it is visually displaying the big gain. earnings probably grew 20% in the second quarter after rising 14% in the first quarter. that is a big game, possibly the biggest since 2011 if you cross out the first quarter. that is creating, for the moment, investor optimism. isn't that the case that some tech companies most exposed to a trade war rely on chinese plants to manufacture chips? they may show the greatest gains. su: what the analysts say is that when you have 30% gains in the tech sector, it causes on

ratios and the requirements needed to sustain an investment banking business, which is why we see credit suisseubs shift away from investment banking more towards wealth management units. the question is how you can stand out and stand out from the pack and continue to attract money and generate net new money in those divisions one aspect that vontobel is focused on, investing a lot in technology going forward their view is to stand out from the pack you need a strong technological platform. that's the words from vontobel, their results in a couple days time back to you. >> we look forward to that thank you very much for that >>> let's look at the rand it has been strengthening to a one-week high against the dollar after china pledged to invest 14$14.7 billion in south africa. the deal was announced by the south african president alongside his chinese counterpart. both leaders did meet ahead of the brick summit in johannesburg where the five major emerging economies are expected to form a united front in the face of increased protectionism. >>> the lira has been weakening once again, as much as

. >>> welcome back time for our call of the day square upgraded to outperform by credit suisse. raised to $81. it's from neutral. the stock had an incredible run. it's up 100% year-to-date. they're obviously a bit late to the party. >> morgan stanley took the entire payments higher i think the fantastic thing about square now is you're seeing the cash ouapp, the adaptation of it up 140% we heard about the challenges they would have from paypal, venmo. they had 200,000 downloads so clearly there's a lot of acceleration in terms of user growth for that. it's a fantastic story >> the adoptioner is interesting, how fast it's been. jack delivering once again free cash flow stands out more than anything. this particular analyst note going from 44 to 81, that's not all that impressive. >> they're late, but better late than never >> absolutely. the free cash flow is what they point to i look at all the rest that was written about it, that was already knowns the cash flow will triple by 2019 and go further in 2020. those are huge numbers >> here's what they say. they say the evolution fr

week, we will bring you a slew of interviews with top executives, including the ceos of barclays, credit suissegen. interviews you don't want to miss. theresa may's brexit options are narrowing. union has rejected 80 part of her proposal for a trade deal with the bloc. he wouldrnier said never allow a nonmember to collect tariffs and run its customs policy. the prime minister is 12 weeks until a divorce deal is meant to be signed. joining us now is bloomberg's rustles -- brussels bureau chief . why did the eu rejects so publicly theresa may's puzzle? because what theresa may proposed was outsourcing the collection of tariffs, of customs -- european customs to her majesty's 11 customs. precedent of a country outsourcing the collection of tariffs. .t would not be practical the eu said it was not tactical and there is no precedent. on banks, theresa may has proposed a book between the eu and u.k.. retainsays it wants to its autonomy, as barnier said. it keeps its own rulebook for banks and won't code to side with another country -- decide with another country. is the eu's position. it has always b

credit suisse expects six million for each and he puts outperform rating of 465.ike coming internationally next quarter or two. that will allay the cash burns concerns. buckingham says the good news is all priced in. that is why he had underperform rating. scott who was with us, $380 support levels. cautious tone is good. if they surprise stock will pop. he will play it after hours. if it pops, tomorrow all the "fang" stocks jump up along with netflix. liz: buckingham memo. if i had a nickel every time everybody said good news is all baked into netflix we would be a lot richer. >> 445% later in one year. over 300 in two years. unbelievable performance. thank you very much. nick and i have boys. they like stranger things. between amazon prime day, retail sales report is little like christmas in july. look at amazon for a moment. look at drop-up. the whole site crashed at 3:02 p.m. eastern, amazon prime, big day of sales kicked in and opening sure enough, too many people jumping on todd horowitz. we're looking at the stock of the it is trying to recover right now. i

look at ubs' equity performance, it has underperformed some of its competitors like barclays and credit suissety from the perspective. how compelling is it ubs from its peers? it is moreia: defensive. it has been quite strong for a couple of years. there could be a correction. people appreciate the defensiveness and if clients do not trade, it is not great for the managing of the bank. ubs.e they still go to ubsef: we have heard from and also from julius baer in the last 24 hours. as the bank results continue to trickle in. is there a common thread you would point to? filippo maria: one big question clients see as the potential for escalation? they need to understand what to do with their money. we could see some clients be more conservative as opposed to taking out more loans and growing their capital. theme. a common briefly, deutsche bank results tomorrow. will there be some sustainable profitability? filippo maria: it is too early to say. it is a relief that we have not had a profit warning from deutsche bank. this time around, they could not meet the cost target. the figures have been elu

that is the latest from credit suisse. you also have the chinese ppi.e market estimated. is withinion goal reach and we are nearly at a self-sustaining level on inflation. the equity backdrop for now seems to be a little bit -- let's have a look at the bond markets. u.s.it came to the auction, things returned to normal. week at thest lowest in 10 years. that has gone back to normal. 2.85.tio can in at equities generally higher. you have this reporting season coming. expecting a 20% uplift in profitability on u.s. equities. we have already heard from bmw and a number of others talking about the initial cost from paris. how does that nip into your margins? 330 seconds. by -- 3-30 seconds. anna: theresa may is fighting for her political life. continuing attacks from your septic lawmakers. she is now leaning on the opposition party. let's speak now to david merritt, bloomberg's news to rector -- news direct or. can she survive? do they have the numbers to challenge her? >> it does not look like it at the moment. 48, that's the number of letters that need to

fti also have earnings next week, by the way credit suisse put them on an outperform yesterday stock'ses 3ds $31. just out of the money earlier today and now in the money by a penny or two watch that one this one's just a very interesting play on folks that are in the shale and under the sea looking for oil and so forth. lastly, boston scientific. they come scrambling in, in this one, big numbers as well, judge. they buy with boston scientific, down about 35 cents. the ogg 34 call calls. not a good call to get there three earnings plays for you, i'm in all three >> cool. good got three for us doc, tweet those out. >> i will. >> tag the show as well. so people can follow through since you got three. >> give you walgreens boots. interesting, scott, look at this company, the company everybody put off and cast for dead. i actually came across the desk last week and almost went for you because trying to explain that just because amazon is a competitor doesn't mean you'll go out of business that stock has already begun to start to rise up and now all of a sudden two days ago you got the ceo bu

assets, deutsche, credit suisse and others, can those banks with more than $50 billion in u.s.ssets, will they get really good tory relief during your -- regulatory relief during your tenure? chairman powell: i can say that 2155, it is not clear to me how it provides regulatory relief to those firms. all of the banks that have $50 billion in u.s. assets have more than two edge of $50 billion in global -- georgia $50 billion in global assets, so i don't think there will be much affect. i will not say that we when i do anything to provide regulatory relief to a group -- >> so your position seems to be that if they are between, or over $50 billion in the u.s., under $250 billion as those are, but much bigger with all of the lly, you do not expect regulatory relief for them? chairman powell: the main thing is the $50 billion threshold for the internal holding companies, that will remain the same. we are not looking at that. and i think that they will not see much difference. >> physical commodities, the ed's proposals from 2016. you are moving to finalize it. the fed responded sayi

well, bnp paribas, credit suisse, unicredit, so we see a ton of financials doing well this morning.y will pull up the stoxx 600 with them. you will see some miners here gainer, asto is a well as glencore. take a look at the losers. you see the pharmaceuticals putting out mix performances the last couple of days. you see novartis is losing today. novo nordisk also a loser today. bp doing poorly as we did see oil down earlier. we will see if that turns around. unilever you can see down by only 0.2%. european markets generally higher after asian stocks climbed overnight. the yuan tumbled. now frommore joins us averaging investments -- aberdeen investments. welcome. let me get your take on what we are looking got -- at in this equity market opening. why do you think investors like asia;s market -- asia's market? luke: it is all about the stimulus we see coming out of china come the weakness of the yuan. this is about china's response to the trade war. we could be at the start of a new risk on phase of the market, at least for the next few weeks. matt: we see financials doing well in asi

this week, barclays, credit suisse, and socgen are due to report. is our senior bank analyst, jonathan tyson. still with us is jimmy conway. jonathan, let's start with you. how did last week's earnings go and what you expect for this week? jonathan: last week we saw deutsche pronounced and ubs. i think the, not a great deal from their, so what we are looking forward to the most, french banks take underperformers in the last quarter. exposed to take trading. dollar going the right way. we're looking for capital build and decent trading. guy: it's interesting this morning, europe and a similar situation. they need a steeper yield curve. how different is this quarter relative to last quarter and the previous quarter? we've got a very flat curves. we've seen it everywhere. we got negative rates. how possible is it for earnings to move the dial it won a macro environment looks like it is? /jonathan: it's very hard but if you look at europe, we've got multibillion dollar investments for digitization. the fact we have cleanup, further cost-cutting, we are

the stock was cut to neutral by credit suisse.ve land expansion leaves it exposed to policy changes tightening markets. is the stock we were alluding to, slumping 85% as trading resumes. the stock has been suspended since march 2012. it has not been idle. bought a company in a reverse takeover. david: 90% drop their over five years. thank you so much. some of the stories trending across the bloomberg universe on bloomberg.com. elon musk getting involved in drama.i cave rescue uber,n twitter, tictoc on pp's efforts in a the middle east and the return to fill in. the most read story includes news on j.p. morgan asking dozens of bankers to move to europe ahead of brexit. check out those stories trending online and on the terminal. plenty more to come here on the television. ♪ ♪ haidi: a quick check of the business flash headlines. at 17 has priced its ipo hong kong dollars a share, raising $3.1 billion. the company says the retail portion is 9.5 times covered. bloomberg has been told the gray market is seeing bids other 10% discount