more comments coming out of sergio ermotti over at ubs.g that "akoni and cost-cutting" would impair performance. he believes reducing encore and legacy assets is a priority. more comments coming through on taxation as well; topline is where you can find all the latest as it unfolds around the cbs story. -- they ubs story. tliv go. let's get the bloomberg business flash with juliette saly. juliette: thank you, anna. it to beaver europe's largest bank, hsbc, despite bad loan charges surging. profit was $6.1 billion in the first quarter ahead of the $4.3 billion average estimate. charges for bad loans doubled to $1.16 billion, the shares rising in london trading. ubs says first-quarter profits fell 64%, missing analyst estimates, as divisions reported a drop in earnings. reported a surprising first-quarter profits, and bad loans helped out way. ahead ofme rose 10%, estimates. the cfo tells us that the market environment was unfavorable at the start of the year. >> revenues held up well in domestic markets, in domestic and financial services.

ceo,berg spoke with the sergio ermotti. arket conditions that we have been operating, that is the result of and achieving profitability in those environments is not easy. '> he has been shifting ubs focus away from investment banking in space -- in favor of wealth management bp has thrown in the towel in a fight over the 2010 gulf of mexico oil spill. lost thesh oil company battle to avoid paying almost $1 billion to businesses and fishermen. bp has said lawyers fraudulently inflated the number of claims. it is a big blow to apple plans to go after price conscious consumers in india. indian regulars have rejected apple's request to import and sell cheaper refurbished iphones. apple's rivals had argued that would lead to a flood of used electronics, plus they said it would defeat the government's program to encourage local manufacturing. that is the bloomberg business flash. francine? francine: this is a picture for the oil market or last week we touched technical levels. hobby or black, our chief energy correspondent, is wit

guy: i was talking to sergio ermotti earlier this week, clients getting freaked out and paralyzed into. what does the back end of the year look like? every trade you put on, crashed out of it, whatever it is, it hurts. what does the back end of the year look like? >> we could a chopping around a fair bit. i had a debate with friends and colleagues -- is the emerging market rally running out of steam? i will have both sides of that debate pretty easily, and it is hard to be completely sure. is the third big dollar bull market of my career now in its last stage, ending if not ended? you can have a lively debate about that. to some degree, we are going to answer those questions later this year. i don't know how long the hiatus and china can really last before debt levels become a big problem again. i don't think dollar-yen is anything like stable like where it is today. we still have a slowing economy in the u.k., and we now have a completely split opinion on what's happening in the states. before i get to the end of the year, i think we will have a lively summary. guy: this is going to g

anna: sergio ermotti there. ubs has indicated 3.8% lower this morning.seems the negatives there are possibly outweighing the positive about the new money. guy: yes, that new money was good, the best numbers since 2008. it is a bumpy number. you don't get a lot of clarity because something scheduled into one quarter and then they fade out in the next. but look, you get the piece of paper, you look at every single unit, one after the other, a miss. a couple quarters ago there was a similar story about deutsche bank. the market is not like that and it is not going to like this at all. arming and for a similar story that we saw in 2015, but in reverse? the first half of this year was horrible, but improved towards the back half of the year and that is what the market will be looking for, any kind of guidance. sergio could not give me any clarity at the moment, but he does not see things changing. he says it is very tough out there at the moment. anna: guy, thank ou. -- thank you. guest, the in our investment director at citifinancial. he joins us on set. we

ite: sergio ermotti calls damaging volatility. in the bank losses because volatility is up and we can show that with the vi x index, which has marched higher in the last six months to a year. but volumes are way down. since the market low in february, volumes have averaged 7.2 million -- 7.2 billion shares a day, down from 9.3 weeksn in the first six of the year. same thing with equities. volume and treasuries, $444 billion in april. that is very close to the 2009 great recession low. evident in currency markets p review can see the average daily forex volume has dropped 20% over the last 18 months, creating the potential for instability. when the bank of japan did nothing at their meeting last month, the yen moved 2.6% in just about two hours. so you have this tremendous volatility that had policymakers concerned, and it does not help people who cannot make anything out of volatility these days. francine: how much does this have to do with something that is so cyclical in nature, and how much does it have to do with more shocks,