report that the three largest banks in europe are close to bankruptcy, we are talking about general credit suissee banks. these institutions are the crowd of the financial system of the european union and in case of problems they can bring down the economies of several countries at once, including germany switzerland france, three banks are considered too big to burst, as they say, this feature has a downside. they are also too large for any state to have the means to save them. crowd of migrants in paris both sides rushed to the territory of the metropolitan city hall, while the participants in the invasion are trying to avoid violence, they demand that the paris city hall provide them with decent living conditions . many of the refugees live in tent cities that are laid out in city squares or under the bridges in paris it is still quite warm, but at night the cold makes itself felt, in addition, the rioters demand an increase in food aid in most emigrant families there are many children and to feed their fill, it turns out not everyone. and this is footage from the united kingdom, where a new w

problems often lead to bank problems, so but i'd just tell you this that the general consensus right now is that credit suisseon't see that the systemic risk to the system is not here. there maybe systemic risk to the system as the fed keeps raising interest rates that's a whole other story and that could be a problem for the dollar, for counterparties ink across world, for governments ink across world including businesses, global businesses that issue debt in dollars and all of a sudden dollars rising fast. guess what? the interest payments just went through the roof. u.s. companies, that could be the systemic risk right now the assessment this is not it. that said, they are monitoring it. every wall street bank and firm has gone out and done an exam, essentially, of their counterparty exposure to credit suisse just in case somethings happening. they are also meeting with the ceo, mr. korner. now here is the interesting thing there's apparently a strategic plan put out by credit suisse in october about the investment bank because remember credit suisse is really three firms. it's a wealth management firm. it

but there's a general concern out there that credit suisse will also need to tap the public markets for what could be a dilutive equity raise. sources tell me that's not something they're engaging in right now, but it is kind of a catch 22 because investors wouldn't want to buy or be marketed newly issued shares without knowing what the transformation plan is ask what the q3 numbers look like as a result, it's likely we will see a lot more volatility in this name until the market gets more clarity carl >> leslie, i guess something you've been talking about all morning is whether or not the market will be patient enough to wait for that update on the 27th or whether they're going to have to announce something in the interim. >> that's right, it's a very, very good question will the market allow them to do that because i maean, they're up abou 2% right now, but as they keep getting lower and lower and lower, that becomes a much more p punitive equity race it makes any kind of financing event much more expensive. it makes asset sales and divestitures look more desperate if the market is sa

in terms of track record it's not bad at credit suisse, starting during the time with these absolute cost targets which generallyeen reached or over delivered. so the track record there is not bad and i hope obviously they will deliver on this one even i agree even also on the cost side there was a lack of detail. >> what you think the view of what is happening here is? what you think the swiss national bank makes of all of this? >> the full build capital increase helps to calm down things somewhat. hopefully. however you have other issues coming. you have this long core unit which is expected to produce significant losses over the next few years. still in 2025, a loss of 1.5 billion. even though rounding down significant positions by then. so things remain shaky in my view. >> in terms of money how much do you think they will have to raise. i also have to believe the market reaction doesn't believe that's it. >> the 4 billion i included exactly that number in my financial model in september. so i was right on this one, the other point is on certain slides of the presentation talking about further divestments wi

generate those profits anymore? axel: going forward, credit suisse is centered around entrepreneurs, wealth clients, and we don't neednesses that are quite isolated from the rest of the group so as you know, we are in exclusive discussions so i'm highly confident that over the next week, we will come to an agreement. yvonne: what about for the asset management side? axel: these were all rumors. we are the asset managers. we need to have -- we don't need to be the biggest globally but we need to have those capabilities that we need also from a product and product provider perspective for our clients and institutional clients. axel: restructuring is--- yvonne: restructuring is being funded by the saudi's. there are questions being raised around the swiss government allowing this sort of stake even the saudi's human rights record. how do you address the geopolitical conflicts? axel: first of all, we are very happy that we have an investor like the saudi national bank. it is a private institution and i think that this is also a reason that -- we are very happy that we could really secure that type of investment into what

all of that generates a lot of capital and puts us in the transformation. >> windows does the new credit suissee profitable? >> definitely from 2024 onwards. >> and there is no chance, there is always execution risks, where you see the main risks today? >> one is obviously the market environment. the market environment is a very challenging one. it's not about blaming the markets, the markets are the same for everyone. but it is a changing market environment and as we can assume, we figured that in in terms of how we did our plans. >> does that mean you have a more aggressive strategy to take account market turmoil? they have been close partly because the markets, so did you have to overcompensate? >> it's not about overcompensate, markets was one of the fact is figured in. how we did the planning for the next two years is, we try to do it and call it prudent, partially conservative way, and that is very important for all of what we are doing here. we do not want to overpromise and then under deliver, we want the other way around. >> talk to me about job losses, 2000 in the next two years, than

as you have seen, in the products business, all of that generates a lot of capital and puts us through the transformation. >> one does credit suissefinitely from 2024 onwards. >> and there's no chance -- there's always execution risks. where do you see the main execution risks today? >> one of them as the market environment. the market environment is a challenging one. the market is the same for everybody. that is exactly how we deal with it. but it is a changing market environment. obviously, you figure the plans. >> does that mean you had a more aggressive strategy to take account the market turmoil? we have also been outflows partly because of the markets. did you have to overcompensate? >> no, it's not about overcompensate. the markets is one of the factors. how we did the planning for the next few years is, we tried to do it in a prudent, partially conservative way to make sure that -- and that is very important for all we are doing here, we don't want to overpromise and under deliver, we want to do with the other way around. haidi: we know one of the biggest challenges facing a lot of wall street and financial institutions h

general meeting that will take place. but raising more capital from a rights offering is something they had resisted because of the dilutive effect, and because credit suisset so much market value already. but the question is, will a hole still exist after the capital raise? manus: meaningful dividends will not be on the slate until 2025. you are looking at a restructuring impairment charge of 2.9 billion through 2024 but they have already started dramatic job cuts. they have had big cash outflows. a lot of that has to do with highly speculative commentary on social media. the ubs ceo said he did not have a monster credit inflow move, where did that go to? dani: morgan stanley says the market is coming back, so potentially more buying from retail investors but doesn't so far seem like that has gone to ubs, where has it gone? we will have that interview with the credits we ceo in just a few minutes. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all

generating into the house of ubs. that came from asia, but also from europe. when i said to him, did you have a monster moment from credit suisseof course, he did not want to talk about credit suisse. he did not confirm or deny there was a monster moment. my sense is there was no material, humongous inflow from credit suisse into ubs. but i did not have the fact on tape to qualify my supposition. guy: have a good flight. manus: thank you. i stayed late for this show. guy: i know. and we gave you a later time. manus: this is what happens when you come to london. you get treated, you get makeup, you get the whole shillelagh. guy: manus cranny, back on a plane to dubai. what have we got coming up? the ecb will be out with its latest decision thursday. italy's new prime minister is already thinking about what central banks should be doing. she is not convinced we should be seeing aggressive rate hikes. joost van leenders van lanschot kempen senior investment strategist joining us next. this is bloomberg. ♪ ritika: it is time for the bloomberg business flash. i'm ritika gupta. shares of ubs are rising. the bank listed profits that b

credit suisse over the past year with the various challenges it has faced. broadly speaking, the banking sector doesn't necessarily see this as a potential for contagion across the sector. banks generallyoncerned about the broader interest-rate environment, the trading volatility, that a lot of the upheaval is bringing about. and while it is potentially good for business in terms of trading activity, the concern of her interest rates is looming over a lot of banks. francine: the ceo saying they are remaining discipline despite all the media attention, but could this snowball into something uglier? >> in terms of the attention being paid, we haven't seen questions of which bank is next in terms of similar troubles. the challenges are quite unique to credit suisse itself, not necessarily being replicated across other banks. the challenges for the banking sector we know what they are, interest rates, and consumer weakness in europe and the u.k. that is definitely something investors will pay attention to. francine: kristine aquino with the latest on markets. we will speak with the chairman of societe generale, we will talk about inflation, banks, and maybe a question or two about what cre

generally in good shape. that should lead to less problems potentially for the banks. jonathan: dan morris of bnp, thank you. credit suisse higher, up by 3.4%. this still trading at 325. tom: when a stock is under five and you are in the banking business -- jonathan: peloton as well. how did that work out? things you never want to say. the ceo of doug jones, is a turnaround sale of the company likely? nonviable. more to come from new york. this is bloomberg. lisa: keeping you up-to-date with news around the world with the first word, i met lisa mateo. the price of oil is holding steady a day after opec-plus agreed to the biggest production cut in 2020 -- since 2020. it will be more than 2 million barrels. that is with a view from the u.s., seeking more oil from producers. russia repeated the warning it will not sell crude to any country that adopts this price cap. north korea ramping up tensions, firing twoth u.s. carrier the ud reagan has been deployed. they launched their first rocket over japan in five years today -- this week. they're focused on waters east of the peninsula. a new study shows millions more britain's w