sergio ermotti is around swiss.ss and this is important to the nation in turning this around. he is very well known in banking, he went off and worked elsewhere for a while but when things got very serious, they needed somebody who could engineer such a turnaround and he wasn't the man for the job.— turnaround and he wasn't the man for the job. man for the 'ob. what are you heafina man for the job. what are you hearing about _ man for the job. what are you hearing about the _ man for the job. what are you hearing about the thousands i man for the job. what are you | hearing about the thousands of jobs that could be going at this newly formed bank? this is a lot of the _ this newly formed bank? this is a lot of the reasons _ this newly formed bank? this is a lot of the reasons why - this newly formed bank? this is a lot of the reasons why a - this newly formed bank? this is a lot of the reasons why a lot i a lot of the reasons why a lot of people were not in favour of this merger and even why the government has issues

the meeting will also mark the return of sergio ermotti as ccf after stepping down in 2020. phew feuds do remain over potential job cuts joumanna, of course, has been joining us from basel to preview this it's what many of you have called a marriage. rather yesterday was pretty much the funeral some might say, today perhaps a rebirth if you want to call it that we're still waiting for the agm to start, but pretty much clarity from the discussion today. >> yeah, and i think it's going to take time for it to come through. remember, it was only two weeks ago that the deal was announced, and these are two gigantic institutions that are now being passed with then being put together by the returning ceo sergio ermotti all of this has happened in the space of a night there are still a lot of questions of what this is going to look like, what sort of job cuts could be coming as a function of the integration of ubs and credit suisse together we know for a fact they plan to continue with the model of the existing ubs which is an outside management unit, but as they look to restructure

tom: sergio ermotti speaking to manus cranny there. let's bring is -- bring in manus cranny at this week. the stock dropping 5% so far in the session. manus: it's a very interesting open i think if you stand back from the conversation around integration with credit suisse and actually look at the numbers, net interest, net income dropped by over 50%. they took a knock on retail mortgage-backed securities and transactions down. net interest income up in the wealth and judgment. what you're going to hear out there is why did they not get more of the flow show into ubs after the debacle of credit suisse or perhaps even in the run-up? that is $28 billion that came in and $7 billion came in after the deal closed. ermotti in the conversation said we saw inflows from all regions, but could he pin that $7 billion on credit suisse? no he could not. he said -- i said are you not concern that you're not getting more of the pie? since you $9 billion went out the door from assets at credit suisse. he said it shows a healthy competition and as a nar

something the ceo sergio ermotti says he is optimistic about. >> the risks are complex i don't think this transaction is a risky transaction it will take time to get to the final operating model. >>> the dispoiappointing ubs numbers brought on the biggest drop in a month which is showing issues in the quarter. >>> and novartis hikes the full year jouloutlook. >> unless there is a challenge in the market environment, our push is to make that happen and strategic and long term and know this is the right thing to do for shareholders. >>> and nestle hits the sweet spot with the food giant topping first quarter estimates as prices offset over declining volumes. >>> the earnings are coming thick and fast today let's start with ubs a 52% drop in first quarter net profit after a legacy legal issue with mortgage backed securities which led them to set aside $655 million it reported inflows of $42 billion in the first quarter you can see the stock is down 4.3% points today. this is held broader european banks with deutsche bank down 3% commerz bank down 2% santandir is down as well. let's get

the ceo sergio ermotti joins us in the next hour. spain's santander beats on first quarter profit despite booking 200 billion euros in windfall tax payments. we will hear from the cfo this morning. first republic shares plunged 22% in late trading after were reporting worse than expected deposit outflows, really writing concern -- reigniting concern about prospects for the bank. let's get to the drug companies. novartis reporting earnings. pps that beat estimates, $1.7, the estimate was $1.57. they see 2023 sales growing in the mid-single digit percentage. they have raised guidance for 2023. that is the big takeaway. we're looking for any results when it comes to the trial of their new medicine in breast cancer. that is the real focus for investors, but at least the top line numbers are a beat. it is a rays of their 2023 group guidance. that is drug companies. ubs attracted $28 billion from wealthy clients in the months leading up to the takeover of credit suisse. it comes as the bank reports wealth management next new fee generating

that will be question two or three tomorrow to sergio ermotti when we sit down.ere is the subtle differentiation. in those very asphyxiated moments of deep angst, the one thing you can do like that is move deposits. 57% of the 60 billion that went out the door from credit suisse was deposits which can be transferred in the process of swift and quickly in the space of hours. they can leave your bank. assets, which are structurally adhered to credit suisse take longer to move. they have said very clearly more losses will come, more substantial losses will come in wealth management. they have to draw down on the liquidity lines from the snb of swiss francs. the difference between assets and deposits? assets is an open-ended question and liquidity will still be needed. this is far from over, and that's a warning to sergio ermotti, and colm kelleher. francine: i'm excited about your interview tomorrow but how does this complicate things for ubs? they have so many guarantees from the s&p in government. can they deal with anything happening at credit suisse? manus: you

back to you. >> there is a consideration it could be temporary geoff, i wonder if sergio ermotti or the bank at large, addressed the idea there will be cost cuts in the form of job losses we know the union weighed in on that front will we see job cuts and what a timeline could look like in the coming months and years? >> reporter: i think that is inevitable credit suisse was in the process of restructuring and laying off significant numbers of workers ubs talked in terms of cost savings from the integration i think there is no doubt about with it, dom, there will be further job losses to go as we see the integration program embarked on. the real issue at this stage is how political this story has become and whether the government is likely to get involved because all of this is really just concentrating banking risk in switzerland in ubs. it now has something like 50% of citizens deposits here in switzerland. as you know, when credit suisse ultimately couldn't survive further without this deal taking place, the regulator finma was involved here. the government was heavily involved here

sergio ermotti will talk to us and similar pull back for the french market. >>> forex with the dollar gain 1.7% and in terms on rates, on the back of the strong pmi print on friday for the u.s., fed futures are pricing in a 90% probability of 25 point hike from the federal reserve in may this morning, we have the dollar trading on the back foot against the swiss franc. euro is steady at 109.80 >>> in bond markets, yields move lower across the board every major region in europe is seeing a 10-year yield moving lower. 10-year bund at 2.46%. italian btp is trading 4.33%. >>> wall street futures with a pull back in store for trade today after the down beat, but really range bound week for trade last week. the dow jones industrial average pulled back .20% s&p just 10 basis points nasdaq under performed lightly .4% pull back. it was a tight trading week. we will see what happens when the tech giants come in with earnings we will be talking in more detail with arjun with alphabet and amazon and meta reporting result this week. >>> in europe, s&p global revises outlook for uk credit rating to

sergio ermotti sat down with manus cranny for the first time since that deal was revealed. >> at times in the market, generally the first quarter was challenging. we still serve clients looking at ubs as a safe haven. inflows were coming in from all regions and from different sources. and in that sense, we are very pleased that particularly after the announcement of the transaction of the acquisition of credit suisse, we still saw inflows coming into our bank, so it is a sign of confidence of our clients. haslinda: let's get more on market reaction and bring in mliv strategist mark cranfield. we have sergio ermotti expressing confidence, but on the other hand, we have first republic talking about an asset sale again. mark: investors in europe are relieved that credit suisse situation has resolved quickly, but you can see how damaging it was to financial markets, particularly in march. it looks as though there are still more names to come out that were missed by the regulators in the same way that svb was earlier in the year. you can still see the way that the banks are using the federa

we will get more on big bank earnings, coming up, we will be hearing from the ubs ceo sergio ermottioming up at 2:00 p.m. hong kong time. there is an ultra dire outlook for corporate america that is so far failing to materialize. let's bring in bloombergs cross asset editor reporter emily graffeo. emily, you have to wonder whether this pricing on the low end of expectations is factoring into how much we are seeing -- 20% of the s&p report, and how much they have really beat. emily: it is still early in the earnings season, but so far it has been pretty good when you look at the bank of america note they put out. the market has actually been rewarding companies better-than-average companies that have beat on their estimates and outperformed the s&p 500 by 2% over the past two weeks, that is higher than the historical average of 1.5%. we still have a lot of earnings to get through, though, and we typically do see estimates brought down before the earnings season kicks into gear. so i am not surprised to see these earnings beats. and again, we still have the fed meeting coming up so the

priority and that was the reason why they decided a week ago to bring back the former ubs ceo sergio ermotti he had overseen the structure. in the chairman's eyes he's the right man to deliver as well. >> a lot of people are calling this a shotgun merger. did you get a chance to speak to any shareholders and get their mood and sentiment about all this >> yeah, absolutely. i think it was similar to what i was saying before. they're very anticipating or excited to see what this deal is going to mean for them in the short term there is some concern about some of the legal obstacles that we highlighted yesterday, a few class action lawsuits being put forward also swiss prosecutors are investigating the deal as well and the circumstance in which this happens once that's put to rest, then the focus is going to be on the actual business integration and eventually sharltds are optimistic they'll be quite generous for the combined entity in the future it ooh e going to take time. >> ubs shares down our joumanna bercetche live in switzerland. thank you very much. >>> turning now to a developing story