credit suisse. we have also heard the interest the swiss market authority requiring extra capital from the business. denmark starting proceedings versus credit suisse. greenville is also in the mix. let's bring you our interview with the ceo, scott steen. >> we have addressed most of the issues. we are down to the last 3%. we've exited the position to a large extent. we have raced almost $2 billion this morning, have taken action. we have taken management changes. we have done quite a lot. still some work to do in the second and third quarter. we have taken a lot of measures. >> why did you arrive to the decision to do this instead of doing something else? like raising capital outright. >> we have traditional capital. that's the best way for us to raise the equity, short six month maturity. it was important for us to get to 13%. we now have that. that was important for us to take the capital discussion off of the table. >> what concrete measures are you actually taking to reduce risk? especially in

more headlines dripping out with credit suisse. i want to get your thoughts on bad news in the banking world. we have positive news in the united states with the jobs number and services -- is it all steam ahead for global equities given what is going on with the u.s. recovery? mitesh: absolutely. we have had since postelection and the vaccine rollout positive growth across global markets. global growth for q1 was 1%, but for the rest of the year we think it will come north of 7% -- a huge number. the real impetus given the vaccine rollouts in the u.s. and u.k. should mean specifically for the u.s. we should start seeing blockbuster numbers for a couple of months. we see april through him july payroll type numbers and a continuation of consumer sentiment pickups. and not just for the u.s. but europe will catch up as well. manus: before i ask how you embrace u.s. exceptionalism, another line from credit suisse -- it is the biggest market story we are tracking -- credit suisse has suspended the share buyback program. this will be ano

damage control at credit suisse over a stock trade link to the hedge fund archegos capital. >>> stay out of politics mcconnell's message to ceo over the sweeping laws across the country. and wall street back after records. can investors make it a 2 for tuesday. what one ceo told jim cramer about bookings this year and beyond. >>> bay youlor making history l night. it is tuesday, april 6th, 2021 you are watching" worldwide exchange." ♪ ♪ you're the best around ♪ >>> good morning wherever in the world you are. i'm frank holland. kicking off tuesday morning with the look at the stock futures. it appears we're set for a muted open on wall street. everything lower basically flat the major averaging coming off a record-breaking session yesterday. dow surging 350 points hitting a new record high. the s&p with another record close. 3.5% nasdaq climbed more than 1% yesterday. now turning to the economies around the world stocks in asia back open for trading after the holiday weekend with the exception of hong kong. europe just getting started. dax in germany hitting a record high we will cont

tom: the intraday chart on credit cease is fragile, down 6% ash on credit suisse -- on credit suisse is fragile, down 6%. jonathan: lisa, raising capital, raising capital. the issue for credit suisse's we have seen this story so many times in recent times and over the last years, too. lisa: we still don't understand exactly what happened at credit suisse. a lot of banks are evaluating how much they will extend within their credit units. of course, hedge funds pushing back and saying that would tip their hand and subject them to potentially bad publicity. jonathan: are we calling this a hedge fund now? for all intents and purposes -- lisa: for all intents and purposes. jonathan: i think it is an important question to ask because, if you are a hedge fund, i think you're are thinking, what are they? are they a hedge fund? lisa: they call themselves family offices but operate in an even more risky manner. jonathan: you understand the history of this more than i do. we often ask the european banks, what do you want to be when you grow up? we still haven't figured that out, have we? tom: t

a tough day at credit suisse.he bank will take a $4.7 billion right down to hide to the implosion of archegos. it series of scandals raised questions about risk management. investment bank head and the chief risk officer are leaving credit suisse. president biden's economic agenda just got a boost from the senate parliamentarian. her ruling past the -- her ruling opened the door to passing a number of things through budget reconciliation. in is a real, prime minister benjamin netanyahu has been chosen to try to form the next government. the prime minister has 28 days due build a coalition, with the possibility of a two-week extension. last week's election was unclear for either netanyahu or his opponent to put together a government. deflating the hopes of an airline industry desperate to get back in the sky. prime minister boris johnson said it is not yet clear that non-essential international travel can resume safely as planned on may 17. global news 24 hours a day, on air and on bloomberg quicktake, powered by m

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

a big part of that has been credit suisse.s up 2% after heads rolled under thomas gottstein. coming up, airlines dealt another blow as england holds off on restarting international travel amid a surge of virus cases and other countries. we see airline stocks like klm down 2%. what impacts could that have on the economic recovery in england? that is next. this is bloomberg. ♪ matt: 11 minutes into the session, and we have erased our pandemic losses, stoxx 600. you can see the gains on the individual indexes, the ftse up 1.1%. the dax up 0.8%. a different story than the futures told us. dani: one of the biggest movers to the upside this morning is carnival, up 5.5%. a little catch up with yesterday's u.s. session. one of its competitors planning on resuming u.s. tours in july. they do not have a green light from the government yet but optimism. air france klm received a massive bailout from the government, $4.7 billion investment, but it is falling more than 1% today because the u.k. pushing back when they will allow for interna

tom: if credit suisse was in london, in the city come out at the wharf, if credit suisse was based in will that this conversation be? that is open to debate. i will wait on the reporting from that from sri natarajan and others. but what would their board be doing? jonathan: do using they would be making another move? tom: i think they are in zurich, and zurich is a unique place. you go to the mcdonald's above louis vuitton there and it is like $14 for a number two. jonathan: i've been there with you. we did not go to mcdonald's. i know that. management knows that, too. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. u can spend thousands and still not get relief. now there's aerot

credit suisse tightens the rules

give us the latest date on credit suisse.t's because there is so much to talk about and so much more to come for credit suisse. at this point, it's about mitigating costs and saving relationships. we have to remember it's not just rk goss. 4.7 billion might be the bulk of the cost that they are likely to face. jp morgan saying that they think costs from these two events could run up to something like 8.7 billion. they will have to set aside litigation provisions as well as continued cost for higher regulatory issues to. on the relationship side, this is a tricky one. green silk has been reporting that credit suisse was looking at compensating its investors for the hit. bloomberg sources tell us that they might instead make their clients face the losses. this could threaten relationships with the qatari royal family. they are also an investor in the green silk fund via credit suisse. there's a lot that they have to contemplate at this moment. for their part, credit suisse says that they will update us in the next few days on w

from a risk perspective, how do you think markets will look at the credit suisse announcement? i know it is hard to put into credit markets, but give me your first take. henrietta: from our perspective, it is going to be what you can do in terms of next steps. they have had two events that showed that the controls are maybe not where we would want them to be, so i think that is what we are going to be focusing on. given their balance sheet, it is probably manageable, so we want to see next steps and how they are going to deal with the issue going forward. at the start of earnings season, what deep -- annmarie: at the start of earnings season, what do you think of the financials? henrietta: so far, but we have seen on the european side in terms of financials, we had a pretty good start. i would not say expectations are moderate, given there is an expectation that the first half of the ear is going to be more tainted by what is happening the pandemic -- happening with the pandemic, but across the board, we have tended to see results that are in line with the beats. i think it is o

credit suisse down another six percentage points. tom: you go right to the common stock and the analysis of it. i think the coverage has been weak and at this is about share dilution, when in doubt, nail the present shareholders. liza has a calculation of a 7% shared dilution. jonathan: raising $2 billion and taking another 600 swiss here. capital has mainly been -- the questions remaining, strategy. tom: i just don't buy it. strategy is out the window. you are taking the common shareholders to the cleaners and they have an emergent basis and have to adjust this bank and stop the share price decline. jonathan: have you had enough clarity transparency over the past couple of weeks from this bank? tom: i don't know. this has been going on for years a credit suisse. i think francine is the expert on this with her many interviews with the previous management and present management. i thought he was basically leaden this morning and the bottom line is, what does this bank do? they go back to 1856 where they find that magnificent rail syst

well credit suisse is taking on the largest hit, the closest to credit suisse. reported an essential to billion-dollar loss. now, we have a timeline of what many are calling missteps, poor risk related decisions that credit suisse has made. you will see that archegos is at the bottom of the recent timeline. in a loss and exposure to another collapse earlier in march, that has yet to be addressed. credit suisse is saying they will be coming out shortly with news of their losses. again, this is going to put a real pressure on the opportunities, both business and profit wised for credit suisse going forward in the near term. 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 si

a management shakeup at credit suisse.ves including the investment bank chief set to leave following the archegos fiasco. we have an exclusive interview with the philippines finance secretary where we discuss the impact of the lockdowns and relief measures he has taken to stimulate the economy. shery: japan, korea and australia coming online. let's get straight to the market action with sophie in hong kong. sophie: i japan, -- in japan, household -- we are seeing stocks gained some ground. the nikkei 225 adding a third of a percent while the yen is little changed. jgb traders looking out for a 30 year sale this morning. south korea, getting closer to wednesdays elections. housing prices a massive sober point. this morning, waiting on the annual national financial report from the finance industry. the national financial debt set to rise. we have seen the kospi gain for tens of a percent. the korean yuan looking stronger, trading at mid-march levels. flipping the board, chinese markets back online. a private read on pmi do t

more changes at credit suisse.he bank is tightening its financial terms for hedge funds and officers. it could signal a shift in the industry. haidi: -- shery: u.s. stocks touch another record on dovish comments from jared powell. the s&p 500 was higher than tack and consumer discretionary stocks. the 10 year yields being sent down. we have jobless claims going the wrong direction for a second week. energy stocks led the declines. crudes futures have been stuck in narrowband. we do have u.s. futures at the moment heading higher. let's turn to sophie for a check of what to expect in asia. sophie: japan, a company restarting output as a fire hit the plants on april 19 and this -- broadly speaking looking at asian stocks, they could cap a two week gain with futures -- keeping a close eye on singapore's reaction to the political pieces. the aussie dollar heading for the first weekly gain. the yen is set to snap a two-week decline, now trading around 109. shorts got unwound and chinese inflation is the headline. it will

manus: the incoming credit suisse chair soleimani -- credit share antonio horta-osorio.ould not a speck making less. -- expect anything less. his language really puts in focus what's going to happen with the asset management business. >> the interview happened before we knew about arche ghosts. we were talking about greensboro. he wanted to focus on his tenure at lloyd's because it is difficult to know when he will do when he becomes chairman at credit suisse. this is a bank that has gone through financial calamity because of the double whammy of archegos and greensill. he was very cautious, he would not tell us much about what he will do what credit suisse. but to say he was excited. we spent a lot of time talking about his track record at lloyd's. the longest standing chief executive within the company. he took a lot of risks, cut a lot of jobs. i don't know how difficult it is to seen -- you want to be able to give the same blueprint at credit suisse. he is a chairman and he is not in charge. suddenly he is in charge of credit suisse with a different structure. annmar

and credit suisse is rolling out tighter limit.otential sign of things to come as they deal with the continued blowup of archegos capital. lets talk with danny r about credit suisse. dani: they got to the low-end of estimates. they did not have the collateral to meet the margin calls. they say their clients will still not -- will not have -- give us a fixed amount of money and we will give you this size of positioning. they are going to allow the ability of dynamic margin calls. ultimately, for hedge and family offices, this means they may have to post more collateral and potentially see less profit on some of those trades. annmarie: what other areas could we see democrat forms? -- could we see them make reforms? dani: other banks could follow suit. we did hear from the former credit suisse ceo saying there was not that much risk-taking in the dna but credit suisse has other areas that could come under pressure. last year, for example, they were one of the biggest underwriters of --. these are areas which regulators have looked int

that brings us to credit suisse.gottstein is facing continued questions, but this time from his own staff. thomas gottstein held a contentious conference call late tuesday with dozens of managing directors. and i understand why there would be questions. joining us is bloomberg's dani burger. he kept his job, even though he just came into it. other people who just came into their jobs in the newly restructured bank following his strategy lost them. is that one of the big issues that he had to face? dani: i don't think people are necessarily saying, why do you still have this job? why don't you go? he is so new. a lot of the scandals that took place were already ongoing before thomas gottstein took the lead at credit suisse. all of these senior management are now facing a lot of stock options that they hold that are worth so much less. credit suisse has fallen 15% this year already while rivals' stocks are up. questions had to do with why credit suisse had so much more to lose than rivals did? why were there so many fa

-- they are going to fine credit suisse, which adds insult to injury.egulators will probably hit them with a fine on top of it, so that is what we can expect to see from the regulators in switzerland. thank you very much for your time today and your analysis. octavio marenzi of opimas, thank you very much, indeed. coming up, more on the fallout of archegos. jim millstein, milstein and co. securities chairman, joining us. this is bloomberg. ♪ ritika: coming up, galaxy investment portfolio manager mike novogratz. this is bloomberg. ♪ >> it is highly likely that we are going to have another situation like that. you know, these things, when they come like we are experiencing where out of the blue, you hero some major loss somewhere, they tend to continue to cascade until the market corrects and flushes the risk out of the system. guy: that was scott minerd, guggenheim global cio, warning about risks similar to archegos. joining us now is guggenheim's jim millstein. still with us, bloomberg's sonali basak. thank you for your time today. really appreciate it.

credit suisse to raise $1.9 billion after the archegos news. it is not exactly the most riveting day in terms of market activity today. the eurozone initially spiking during the ecb press conference, and then fading the move. we are now down by 0.1%. alix: like you say, super muted. the same thing here in the u.s. markets. one is the s&p 500 airline index. it is up by 0.3%. americans having a smaller than expected loss. southwest feeling very optimistic for those summer months. d.r. horton pretty much flat, despite strong quarterly orders. i did want to highlight the energy in the green plan. we had a norma's announcement out of the u.s. -- we had an enormous announcement out of the u.s. this is one way to look at it. it has been lower for about three straight months, getting a nice bid today, up by about 3%. in the currency market, the rates market, the commodity market, really calm. guy: super smooth, i guess we could argue. but we've got some bigger events coming up. the ecb keeping its emergency asset purchases unchanged. ecb president chri

the s&p 500 year in target over at credit suisse now 4600, from 4300.ust to re-emphasize what we were talking about moments ago, it represents another 9.2% upside from where we are at the moment in this market. lisa: where we get the idea that we are bringing forward some of the returns, are we bringing them forward for the next 20 years? i do want to go back to this idea of higher taxes being baked into credit suisse's view. i am really trying to understand what tax rate we are actually looking at. the headline tax rate and real tax rate is very different. the top 20 companies, and this was data that was highlighted by bloomberg economics, paid a median effective tax rate of 17% last year from 35% in 1990. that is the effective tax rate after you already account for all of the loopholes and the other ways to get out of things. so what tax rate exactly are we talking about? lisa: it depends -- jonathan: it depends what it comes in at, doesn't it? if it comes up, the effective tax rate will come up, so you've got to back that in. lisa: bloomberg economic

as you take a look at shares of credit suisse. by way, those shares have suffered and if you are an employee there. you got your compensation to a certain extent comes in stock. you got it not that long ago and you have watched it decline ever since not just because of archegos but also the greensal problems they have had there with unwinding that fund as well and relationship between credit suisse and that well-documente by the "wall street journal. but jim on this one, i heard your comment you wonder it's risk management and also terrible trading decisions they were sitting on this position we saw goldman sachs blow it out. morgan stanley p and viacom the farfetch at 27 the vip at 29 and their own stock suffered as well they say it is stanley all now but why do these firms even have brokerage. i wonder sometimes does nam ra really need to have it when they lose $2 billion and there is county party risk for the hedge funds that do business with them too remember leanmen when they do the swaps. so even may be hesitant to do busine

shery: bloomberg su keenan with the latest on credit suisse.t has been exactly one year since wti futures turned negative. the rush to sell these contracts came as investors realized they could be stuck with the commodity with nowhere to put it. for more on oil and other assets, let's bring in tracie mcmillon from wells fargo investment institute. always great to have you with us. this gtv chart on the bloomberg showing that historic route that we saw in oil last year. but since then a lot of things have changed. we are talking about u.s. and global energy stocks up almost 40%. brent up over 140 percent. opec cutting production. given the rally that we have seen so far, is there still room for more gains? tracie: you are right. one year ago it was a -$40 per barrel on the oil price. and we really saw that as a washout event. and like you said, a lot of commodities since then are up double digits and even triple digits. but we do think there is room for their commodities complex as a whole to move higher. with oil at $63 a barrel, we think that

for instance, at credit suisse, you may recall through the financial crisis, 2008, credit suisse wasne of the banks that did not have any government bailout and was considered to have managed one of the best through that crisis. so, there is a lot of good dna karen risk management, as well. david: as going to mention that because you manage credit suisse through that of the situation. the regular that awful situation -- that awful situation. did it make sense? did they go far enough? did they go too far? >> obviously, there were different waves. initially, there were a lot of reactions, many of which made sense. one of the things we did at credit suisse, we were very involved in trying to work out what were some responsible reactions that needed to be put in place as a result of the crisis. and i think we did that. obviously, in some cases, there may have been excesses on the regulatory side that had negative consequences or went a little too far. but generally, a lot of the measures made sense. juliette: that was brady dougan speaking to david westin. let's head to new york and get

juliette: the credit suisse ceo is taking fire from all sides. in an internal call comic's own employees vented their anger over the bank's multibillion-dollar losses. rishaad: the markets [indiscernible] this is a snapshot of what is going on at the moment with it -- with asian equity markets study this thursday. u.s. equity futures moving to the upside after small gains on the s&p 500 and the dow jones industrial as well. a bit of breaking news coming through. the sri lankan interest rate decision taking place, keeping cost of borrowing steady at 4.5%, essentially what we were looking for. the standard lending rate is at five point 5%. i should say the deposit rate is 4.5%. this coming out of colombo. a word as to what is going on with asset classes as well, taking a look at japanese government bonds. we have got those supported, also an oil price supported as well. to the downside by .2 of 1%. seeing oil and a narrow range in the last few days between 59 and $60.5 a barrel, and look at bitcoin. someone coming out and saying bitcoin could be a

credit suisse.more than $2 billion in capital after losses from the ill-fated archegos trade. the bank expect a hit of $655 million this quarter if you wonder how much that stings credit suisse says if the $4.8 billion charge because of archegos and costs related to the collapse of uk finance firm green sill were stripped out t would have reported the best quarterly profit in a decade if i didn't get that, my gpa would have been better credit suisse has more than $20 billion in exposure to archegos investments. thousands of credit suisse employees all over the world working their butts off all year long will wipe out the bonus because the firm getting hacked by one bad trade stock number three shares of the debut. uipath rising up and raitradingt $71.80 it has a market cap of $36 billion. >>> more airlines set to report their quarterly results today. we are not saying earnings american airlines and southwest and alaska airlines expected to post losses. it is the outlook. let's talk about that with s

if i am a customer, do i look at credit suisse differently now?son: customers are asking questions because it is not just a one-off event because it has been a number of events and it is not just one unit of the firm. it is a couple of different units. that is why they came out today and addressed it with some management issues. they will keep the talent. the employees make up the investment bank, to the extent a bank like this takes hits, there is scrutiny in terms of pay across the board for the bank and less profits to pay and make things tougher when the bank is focusing on these non-core issues, so people who work in the wealth division may feel disappointed that senior management is distracted by some of the issues. it is the talent that needs to be the focus. alix: you have covered banks for a long time and you've seen banks go through many crises. credit suisse has laid off a lot of people based on this. to they do that enough? you think they have culled the ranks enough? alison: what they have done so far is just the things you would defi

if you heard what credit suisse said last week $4.7 billion loss. my numbers might be off a little bit so please don't at me. but you know $1.5 billion all in that suggests they had a remarkable quarter, but for this the story, and i don't think we're suggesting underlying stocks the story is credit suisse they made a trading decision, david faber alluded to it they didn't just discover -- no pun intended -- they had $22 million and $19 million of discovery aid lying around they made the decision the market would bounce and we would artfully get out of this but that wasn't the case so it was more about the decision making for credit suisse then any of the individual names >> or the prowess of morgan stanley that dumped its exposure prior to the stocks going down what's your point. >> to guy's point, it's inside the huddle chat when you work in an upstairs bank or broker house when you see something sell off 50% or 60% you're always thinking it's going to bounce and you're always trying to play trader, especially when you have the loszs on the table

credit suisse identified as having the largest loss.omberg 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. it works every muscle group, including your core, using your own body weight as resistance. customers love total gym because it's fun, fast and effective. nothing delivers full body results like total gym. and right now you can try it risk free and enjoy special savings too! get on demand workouts

from former credit suisse ceo. to fly constantly back and forth from london to zÜrich to interview him. that interview coming up at 5:00 p.m. london time. the eu failing to find unity what the link between astrazeneca's vaccine and a rare type of blood clot. this is bloomberg. ♪ you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling. (announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. ♪ annmarie: good morning. from bloomberg's european hackers in the city of london, i annmarie hordern with manus am cranny in dubai. this is "bloomberg daybreak: europe." u.s. futures push higher after another record for the s&p and the dovish fed minutes. jay powell speech later tod

but the shakeup at credit suisse. joe: we continue to see that in the wake of the major losses at archegos, kia, a key figure, add credit suisse involved in risk management. for more let's bring in sally bowser. >> sources have told our colleagues brian chin, it is a hard below because credit suisse's investment bank was making some moves forward. within this archegos scandal happened and the head of the investment bank is looking like one of the members who will be departing the bank. there is more news, by the way. it is that they will be updating investors this week. we do not know the scale yet of these losses, so investors should finally be getting some clarity, as well as any other executives will be a part of this. 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, th

credit suisse as a new report puts related losses at as much as $5 billion. the bank is responding with a massive shape up. several top executives are in the firing line. haslinda: u.s. treasury secretary janet yellen poles a global corporate tax rate and she outlines america's return to the global stage. she also singles out china, saying washington needs to level the playing field. rishaad: we have records for u.s. stocks. we certainly have a mixed picture for asian equities. taking a look at what's happening. the nikkei is being dragged down. this is to the report that came out earlier. the shanghai household did cut spending once again. they were in lockdown. the shanghai composite has a better re-brought. services at 54.3. it was meant to be 51.5 according to the estimates. better than expected. asx 200 is stable at 9/10 of 1%. we just have to half hours to go before we get the latest from the reserve bank of australia. here we go, the go price, very good, up by one third of 1%. i have seen oil under pressure. it is down to this gradual story of restorat

why was it credit suisse versus the other banks that are facing these issues? what team will he have to get past these issues while also doing such a steeper review of these individual business lines? kailey: what is a going to mean when it comes to their share buybacks? what is the financial implication? sonali: beyond the lawsuit itself. that is the big worry. the buybacks, the dividends gets in trouble. let's talk also about any regulatory issues they have in the u.s. with the fed or in switzerland on top of that. right now, what analysts are saying is that they can be about the regulatory capital even with these losses. what becomes of the financial return to shareholders, not just this quarter but other quarters. kailey: that has to be a question of how you have deutsche bank, morgan stanley managed to come out of this unscathed and for credit suisse, it could be that bad. sonali: why are we focusing on credit suisse? it is because it is bearing so much of the pain. i was speaking to carson block, the short seller, and i was asking, are you worried about t

details for fallout from credit suisse, which the bank has confirmed.u: confirming a 4.30 $7 billion right down -- 4.37 billion dollars write down, which is staggering by any measure. a statement measure -- issued by the ceo said this is -- said some serious lessons will be learned and the loss is unacceptable. the bank loss forces it to cut its dividend proposal for 2020 by numeral two/3. his suspenders share buybacks and is casting fresh doubt on its record of managing risk. rishaad: we have also got news morgan stanley did act swiftly and managed to eliminate exposure to the losses. huge contrast here. >> yeah, it is not clear if credit suisse waited, but those firms that acted quickly managed to escape virtually unscathed as the tally of losses and non-losses reveals. notably, morgan stanley, goldman, deutsche bank, virtually no losses or impacts, and bloomberg has learned from a person with knowledge of the matter that morgan stanley actually pulled a $5 billion basket of shares the day before. we also know goldman acted swiftly. go to the bloomber

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

didn't realize that someone was trading with so much leverage on credit suisse's book. g. said in a quote, i recognize the cases have caused significant concern among all our stakeholders. serious lessons will be learned. he was brought in to deal with an issue by his predecessor. now he is facing not just this, but the other issue as well. he kept his job. >> it is interesting, people are giving him a great period here. we are seeing laura warner, being replaced in the interim by somebody who held a senior position in the same division just before her. a lot of the changes you're seeing, on the base of it, it is changes, but the reality is, some of it is also a lot of the same, right? the issue here of leverage and risk management, then there's also the issue here of leverage to liquid funds in the first place. then also they lost so much money tied to york capital. what is it about credit suisse's culture that is exposing them to firms that are prone to also facing a lot of trouble as well? >> yeah, and allowing them to use their balance sheet for leverage. the grace per

so there's still more investigation at credit suisse from what we understand.'s job for now is safe, but we're hearing depending how this thing turns out, it might not be safe in the future particularly if those, that $5 billion loss grows to something more than that. the other half of the story, liz, that we have today is we were trying to track down rumors about some of archegos' dealings with the banks. there was a rumor, and particularly at some of the banks, people at the banks were talking about this, that archegos somehow used the same collateral for those risky trades at each and every bank. it was a rumor, we checked it out. we should point out that we asked archegos about that, and through a spokesman they said it was the false. they furiously pushed back, actually called it patently and demonstrably false that mr. wang used the same collateral. they'ring pushing back. obviously, that would be a legal issue if that were true, they're saying t not true at all despite the market rumors. and that's why we can't go on the air with market rumors. you've go

. >> a tough year for credit suisse, one scandal after another.dit suisse's first-quarter results may have been better than expected, but the nest loss -- with a net loss, but additional losses of $655 billion from archegos will be seen until the second quarter. regulators have opened a probe. we spoke with thomas scott stein and asked whether the bank's problems are now over. >> we have to address the issues. archegos, we are down to the last 3%. we have exited the positions. we 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

credit suisse is prime brokerage business, the co-heads are leaving. departures are the latest among executive exits. joining us is dani burger. can we expect credit suisse's prime brokerage to operate differently? we did get some indications how they were changing the amounts of risks they were allowing hedge fund clients to take. dani: exactly, and now the question is will there be a big change in strategy generally. they are signaling that. they are not the first top members of the prime services businesses that have left. we had the head of risk at prime brokerage services leave, and the head of hedge fund counterparty risk exit credit suisse at the same time. the interesting thing about these former coheads is that when they came into credit suisse, they had a mission of changing prime brokerage to focus on fewer client. the idea was this is more profitable. now if that focus leaves them at more risk from bigger losses from a single client, with them leaving, they will stay on through may to help the transition. that focus on a few clients could b

have been head credit suisse warns and pre-market statement of a highly significant hit to its 1st quarter results after it began exiting positions with a large us hedge fund that defaulted on margin calls last week so play this as a tragedy or a comedy you know that's always the question if i go tragic. that would be one way to go down the tragedy path or i could go down the comedy path either one or there's a tragic comedy there's a big mix of both if i go down the tragedy path things could get woolly so the 1st time was tragedy we cover that 2008 this time is comedy because it's the 2nd time so if it happens again in the same exact way the same exact manner happens over and over the 1st time our financial system almost the last was back in the ninety's with long term capital management remember them. that's when the fed intervene to rescue one single hedge fund here we have the same sort of situation and again just like 2008 again member i said the financial crisis has risen again and that is it went through europe because what happened was huge amount of leverage using some

what does credit suisse do? they have both done reasonably aggressively on the private bank wealth management route. if you think about ubs and its retrenchment out of things didn't come, which is very similar to what we saw with deutsche and equities, they have become far more selective in the businesses they are in, so when you think friday sort of -- when you think for a sort of non-investment banking for ubs, they certainly punch above their weight, and i think globally, you forget quite how big the u.s. banks continue to become as europe spends a decade in turmoil. jonathan f: how's this for a stat? it comes from a report here at bloomberg news, coming from the fed data. total loans and leases out to a record low as a share of deposits. we talked about that subdued loan demand in the first quarter. does that continue into q2, q3? jonathan t: well, we know that the behavior of the corporate and retail last year has ramped up deposits, and credit carnes end loan facilities have been paid down, so that will co

credit suisse down.y will be cutting bonuses as they try to conserve capital as they deal with the archegos fallout. let's get more into credit suisse. sonali basak is joining us now. the bonus story, surprised? sonali: not so much. it is disappointing for the people who work there because they would've been a banner corner -- a banner quarter if not for archegos. could come back later this year if performance were to turn around, but the same time this all comes with the overlay of how they retain talent, do they want to keep certain talent in certain places or do they want to cut the investors bank into a bigger scale? alix: so when we do get the numbers, how do we read through the noise of they are cutting bonuses, we will see what their losses might be. sonali: we do not. we look at the numbers for what they are and we say this is how much money you are losing at a time you should not have had these major losses to begin with. the question is how do you recover from this and make sure this does not h

sophie: credit suisse --karina: credit suisse -- sources say the bang is expected to give an update on its exposure to the capital this week. the ceo is said to be expected to stay on while the ceo of its investment bank is also under scrutiny. in other news, republicans may be ready to support a limited version of president biden's $2.15 trillion proposal. but according to a story, the plan would need to be scaled back by more than two thirds. the director of the national economic council countered, saying the plan is "a one-time eight-year capital investment that will expand the economy's potential." china and south korea say they'll work together to denuclearize the peninsula. in a meeting with chinese top diplomat, they said the two sides will seek a political solution to pyongyang's nuclear standoff with washington. the two would push for a state visit by president xi jinping once it has stabilized. all nonessential services, including morals and places of worship, will also be shut later monday. the restrictions come as india's case count heads toward 100,000 a day. premised are

the final story is credit suisse. we were just talking about deutsche bank.s been a shocking five days for credit suisse. you can see the impact. that is friday when all of the action happened. monday morning that stop gets -- that stock gets knocked and it continues to decline. five days, credit suisse down 17.5%. alix: opec-plus meeting still underway. they are looking to gradually raise oil production over the coming months. oil taking it pretty well, right now up .3%. will kennedy, bloomberg editor for commodities, joins us now. give us the latest on how these conversations are unfolding. will: the ministers are currently in a virtual zoom call to discuss policy moves. that is going on at the moment. going into the meeting never two options on the table. the option to hold for a month or to gradually increase production. it seems at the moment they are heading towards the section option -- the second option. there is a polin neri agreement to do that. we do not know how fast that -- there is up limit neri agreement. -- there is a preliminary agreement. i