manus cranny spoke to the ceo, sergio ermotti.with thery pleased strong quarter, not only in absolute terms, but if i compare it to the second quarter of 2015, we are up. both in absolute and relative terms, very strong results across all businesses. quarter, therst phrase was paralyzing volatility. that016 going to be a year we've got to get used to subdued activity? >> it looks like. there is very little visibility about the near future on all fronts. macroeconomic, geopolitical, and clearly, this is translated by client risk aversion. we can measure it in terms of cash holdings. our average cash holdings of our clients outside the u.s. is 28%. in the u.s., declared cash holdings is up to 22%, the highest level we have been seeing for a while. it is a challenging environment. francine: that was ubs ceo sergio ermotti. cranny. live to manus sergio ermotti staked his reputation on the wealth management business. is that paying off? manus: the strategy is proving harder. everybody thought they were moderately insulated. you sat dow

ubs ceo sergio ermotti spoke to bloomberg about the results and the challenging business environment.ergio: i'm very pleased with the strong quarter. if i compare it to the second quarter of 2014, which was a miss in order, we are up. in absolute and relative terms, very strong results across all businesses. quarter, therst phrase was paralyzing volatility. is 2016 going to be a year that we have to get used to subdued activity? sergio: it looks like there is very little visibility about the near future on all fronts. macroeconomic, geopolitical, and clearly this is translated by client risk aversion. we can measure it in terms of cash holdings. the average cash holdings of our clients outside the u.s. is 28%. 22%, which is the highest level we have been seeing for a wild. it is a challenging environment. anna: sergio ermotti speaking to manus cranny. us in theill with studio. ceo andto the barclays he was putting up a fight for european investment banking, saying the barclays investment bank has performed well in the last three months. the question came from the contrast in hell amer

let's hear from the ceo of ubs, sergio ermotti. sergio: i'm very pleased with the strong quarter. it to the second quarter of 2015, we. -- we are up. very strong results across all businesses. manus: the first quarter, the phrase was paralyzing volatility. his 2016 going to be a year where we've got to get used to subdued activity? sergio: it looks like there is very little visibility about the near future on all fronts. the economic, geopolitical, and clearly this is translated by client risk aversion. we can measure it in terms of cash holdings. in the u.s., the declared cash holdings is up to 22%, which is the highest level we have been seeing for a while. it is a challenging environment. manus: what is holding the clients back? we had brexit, geopolitics, and negative rates. when you talk to client advisors, what is holding them back? sergio: you just said it in your question. all these issues are holding thisinvestors and at stage, our job is to stay close. many of them want to be extremely conservative. therefore we are not pursuing a strategy of pushing clients to take on r

david: sergio ermotti's drive to cut costs includes a partial hiring freeze at his wealth managementiness. restrictingirms supplied only support functions and not client advisors. to trimeen pushing costs after first quarter profit dropped 60%. that is your business flash update. nintendo's newest game, pokÉmon go is sweeping the nation, soaring to the top of download charts. it sent nintendo stocks joining us -- soaring as well. cory johnson, if i were to hold up my camera, i would see a jigglypuff on your shoulder. why is this so big? cory: it's one of the greatest technologies ever invented in terms of mobile processing power, artificial intelligence, and computer graphics capabilities. the same stuff that gives you a snapchat filter is the same thing that's giving this pokÉmon exterior that has people wandering all over the place, bumping into stuff. this thing has surged in popularity since its release last week to the top of the charts in terms of downloads for both android and apple ios. it has people excited about the long beaten-down shares of nintendo, with the notion that

francine: that is the ceo of ubs, sergio ermotti.s hurting banks, trading is tough, is there any glimpse of hope? >> not really except for the fact that both banks have delivered on cost cutting. they can try to respond to some of this with a more aggressive scalpel. they deserve some credit from the market, so today, ubs and barclays did show some signs of being able to manage that on the cost basis, but as you said, the outlook is really, really tough. if the stress test for italian banks are really bad, isl we see consolidation, or that head should of the capital buffers and new rules in place? lionel: it is interesting. i find it funny because the market very quickly discounted what was supposed to be a big european grand project into an italian question. everyone now is seeing more capacity and working out a solution. nobody seems to care anymore about a stress test. countries are not even going to be included in the stress test. i think expectations have gone down a lot for the stress test. if they are not met, you might find a