this time, thomas gottstein feels the heat from his own staff. more details on a contentious internal call. maybe it was an internet call as well. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." we are just 38, 37 minutes away from the start of cash equities trading. there are a couple of things that we have not touched on yet today. first of all, i note that we saw the second-biggest block trade in recorded history yesterday. 50.7 alien dollars taken tencent was sold -- $15.7 billion stake in tencent was sold. do you expect this archegos fallout to continue? >> i don't know if it was confirmed as the archegos fallout but i think it was an incredible trade. i think we are still going to be talking about it. certainly at credit suisse they are going to be talking about it for many months to come. we have already moved on from it being a major market driver. it has arguably not been a big factor for tencent and self, even though it was a very large block trade. you remember the largest block trade ever in the world?

we spoke to thomas gottstein earlier. are all responsible for what happened. it is not our job to take credit suisse -- it is now our job to take credit suisse to the next level. he have a lot of good elements that we can build on, and with the board of directors, we are doing this investigation, and we will build on that. anna: let's get some analysis. filippo maria alloatti, senior credit analyst, hermes fund managers joins us. the ceo of credit suisse telling francine this morning that he wanted to take the conversation off the table with regards to capital. do you think that is something he has managed to do? or, does this remain at the forefront? filippo: i think to some extent it will remain at the forefront because especially on the leverage ratio debate. and also the fact they are raising a billion dollars. at the moment they are ok, but they are dependent on more losses from greenville and -- greensill, and archegos. the new chair coming with the ceo will show the results of the internal investigation, and whether

this time, thomas gottstein, the ceo, feels the heat from his very own bankers.of the details on the contentious internal call. this is bloomberg. ♪ ♪ manus: another day, another archegos aftermath. credit suisse ceo thomas gottstein facing tough questions, this time internally from his own staff. he held a contentious conference call. this is what we know. late tuesday, dozens of managing directors whose stock options are underwater was at the source of the angst. dani burger has the details. >> you have to imagine it really is because the stock itself is down about 15% so far this year. and of course, they are probably awarded it at a different price but still, that is a grim picture you are facing if you're an employee. senior management on this call were asking why did credit suisse take so much of a bigger hit than rivals? not to mention just its risk assessment and sort of collateral it holds in assessing its clients and counterparty risk. 2021 might not look good for bonuses as well given that the first quarter is now facing a loss and there is no bigger t

thomas gottstein is safe. thank you for your continued coverage.den is aiming to drive down carbon emissions through a sweeping infrastructure plan. we will have that story next. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open." 30 minutes into the session, stocks are gaining across-the-board. certainly the stoxx 600 has erased its pandemic losses. you can see the headline at the bottom of your screen -- we are back up to an all-time high for the broader european benchmark index, the stoxx 600 after it makes up everything it lost since the start of 2020. let's look at which sectors are on the move with the grr, the group rang returns -- group ranked returns. resources are doing the best. automakers and auto parts makers are up as well. banks are gaining as well as insurance. food, beverage and tobacco, which was seems a good bet. you need those things unless you managed to break the habit. let's get the bloomberg first word news. laura: north korea says it will not participate in the tokyo olympics to safeguard its athl

a lot of pressure on thomas gottstein. >> a lot of shares here up .50%.s this impact credit suisse and how does this impact other european banks? >> it is fascinating as you say, up slightly today. i think a lot of expectation that it could have been a bigger hit. it shows the actual investment bank has done well this year you know, maybe i'm hearing from people that the bank who are seeing this as something they can shake off. it is a big deal they are embarrassed and upset they are looking to shake it off and look to the rest of the year on the back of the stronger results. in terms of the prime brokerage business we have several people there who have left and replaced i think it sets a lot of question marks about the business within the investment bank it is a niche industry serving hedge funds and doing equity business for them and credit suisse weren't the only bank to get stung by archegos. several wall street banks and big asian and japanese and hong kong banks really hit by this. i think a lot of them will look at the prime brokerage business and

francine lacqua will be be speaking with credit suisse ceo thomas gottstein.will bring you that interview at 7:00 a.m. london time. joining us is ronit ghose. let's start with credit suisse. what is your first take on these results? ronit: sure. thanks for having me on. the results trailed earlier this month, so we were expecting a bigger loss. the results turned out to be slightly better than we had feared. there was an underlying pretty good performance in the investment bank. that is the tragedy of what has happened around this family office. this could have been a really good quarter. manus: when we look at that wealth management beat, the sec are now looking at, perhaps, new measures on disclosure. do you think we are going to go into a period where there will be tighter requirements, more regulation, more disclosure from family offices? ronit: absolutely. there was clearly a gap in the regulation and disclosure requirements and obviously a massive failure in this company's risk management. sure, there will be an increase in tightening. internal risk mana

we talked with credit suisse ceo thomas gottstein. >> we are all responsible for what happened.t is now our job to take credit suisse to the next level. as i said, we have a lot of good elements in this first quarter we can build on, and together with the board of directors, we are doing this investigation, and we will build on that. ritika: meanwhile, swiss regulators are starting enforcement proceedings against credit suisse. joe biden is set to become the first u.s. president in 40 years to recognize a mass killings of armenians as genocide. that risks upsetting an already fragile relationship with turkey. the president's pronouncement will likely coincide with saturday's armenian genocide day. the killings took place under the ottoman empire, which later became turkey and various successive states. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> the american jobs plan is the cornerstone of the administration's approach to address climate cha

. >> the credit suisse boss thomas gottstein speaking with francine lacqua. have a look at this.i naming credit suisse a stock among their best risk reward ideas in terms of upside potential. keep that in mind. >> sources tell bloomberg president joe biden will propose upping the capital gains tax on wealthy americans to pay for social spending plans. for those earning $1 million or more, that means federal taxes as high as 43.4% after an existing tax on investment comes out -- comes out. it could reverse the long-standing provision that texas returns on investment are lower than labor. . the biden administration is weighing an appeal from progressive democrats to accelerate global access to covid-19 vaccines by supporting a waiver of intellectual property protections. more than 50 countries support the move including india and south africa saying it would save lives. it is opposed by big drugmakers. former president trump blocked the initial proposer last year. intel says 70 people working for a construction contractor at an expansion office any factoring plaint in ireland have

in terms of having a culture of risk, and that is really something that come gusting -- that thomas gottstein changes, and there needs to be a much bigger overhaul now. we have seen this at deutsche bank going on for a while. we have seen this at wells fargo, and we have seen this now at citigroup. so we know that these do not get fixed overnight. what was interesting is wells fargo and deutsche bank, who are two companies that have been in a multiyear process of upgrading their risk and control system and their culture, came out was immaterial losses. lisa: when we talk about credit suisse, we are talking also about what happened with green sill capital and the collapse there. a story on the bloomberg talking about credit suisse may let clients take losses on those funds. i am just wondering the liability that trickles out here , not only on a legal standpoint , because i'm sure there will be plenty of litigation, but also from a reputational risk. how much more capital could get withdrawn from this bank that is perhaps not fully princeton or factored in at this point? alison: we are worried

according to the bloomberg report, thomas gottstein meet with the cleaders on tuesday the exposure andmay lose more than the rival banks. >>> peter thiel spoke out yesterday slamming the work on the artificial intelligence with the chinese. he said company insiders told him they are working with the chinese government or chinese authorities because they figured they might as well give the technology out the front door because if they didn't give it, it won't get stolen anyway on apple, thiel said the company was unlikely to confront china because of the supply chain. two targets for thiel. >>> sticking with technology in china. the commerce committee is holding a bill and taking on beijing on that secretor. the measure in a bid to address competition with china >>> we have been telling you about air travel returning in the u.s. now a new airline is entering a market phil lebeau has the story. >> good morning, dom a long time since we have seen a full mainline airliner not a regional a main line airline here in the united states. say hello to avelo avelo is the first full airline to be

alix: new ceo thomas gottstein, what should be his responsibility here, and/or how long does he haveove to wall street, to investors that they are good to go and they have trimmed the fat? alison: keeping in mind that he came into the role about a year ago, amid another scandal, the prior ceo involved in the spying scandal at that time, and then over the course of last year, as we know, there have been a few other things that have gone wrong at the bank, two of which resulted in major charges. one relates to residential mortgage backed securities, so this is an issue that really predates the ceo, whose most recent successes include what he did with the swiss universal bank, so very separate. it was also the hedge impairment charge. there have also been another couple of issues. so the question is since he has come in charge and things have sort of bubbled up, what has been done to tighten the reins, and where there reporting in place in terms of what is happening with governments, was risk controlled? where was the fall down and risk control? was it particular person -- down in risk

. -- thomas gottstein would stay in his job.lobal news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> i think you can reinvigorate labor with this bill, but also the entire american economy as we move forward with the american jobs plan. inside that bill, there's lots of components to get america back to work, to add to the news today, but also to rebuild america. tom: martin walsh, our secretary of labor, on jobs day. the former mayor of boston, it was good he spoke to us before the boston red sox went 0-3 for there were start at home since 1948. lisa: how are you doing, tom? tom: i'm doing great. the great jocasta lyons -- the great jocasta leone. kevin cirilli joining us now, our chief washington correspondent. he knows phillies 3-0, red sox 0-3. how do they get the infrastructure bill to a philadelphia phillies-like bang up job? kevin: good morning, tom. appreciate that introduction. what an amazing in

they are discussing whether to replace the risk chief, while ceo thomas gottstein would state in placeeach into the billions from the collapse of archegos. monsters may have provided the breakthrough hollywood needed. "godzilla vs. kong" is drawing the largest crowds to theaters since the pandemic began a year ago. theaters in the u.s. are just starting to reopen. that is your latest business flash. alix: thanks so much, ritika. here's another story i am watching today. pioneer national resources -- pioneer natural resources continuing to expand in the permian basin. they agreed to buy double point energy in a deal valued at $6.4 billion. the takeover is one of the biggest in the american oil industry this year. less than three months ago, pioneer bought parsley energy. u.s. drillers have been consolidating. the read is the price is pretty high for right now. the legendary analyst paul sankey points out that the industry is growing at a pace where investors don't want the industry to actually grow. evercore says that double point has a highly contiguous position. it also has gathering

credits we ceo thomas gottstein has a tough crowd to deal with these days, he's on bankers -- three daysn bankers. credit suisse stands to lose as much as $4.7 billion. the head of archegos may be the greatest trader you've never heard of. he's a master $29 billion fortune by betting and stocks, and lost it all. alix: on that point, "bloomberg businessweek" has an amazing article on how to lose $20 billion in two days, probably something none of us ever want to try and do. it is a really in-depth look into the history of hwang and his idiosyncratic nature, like don't curse in the office, yet really under wraps when it comes to social activities, yet he is this huge person on the street with these big trades. guy: absolutely. i do wonder whether you want to compare and contrast, in two days, how much did credit suisse lose? we are still trying to figure out exactly what that is, but reputation lay, just how big an impact did this have on this business? absolutely huge, i would have thought. radical changes badly needed at credit suisse, and arguably the worst thing they could do would be

thomas gottstein has said he will bring in a review of their strategy. places that credit suisse could be looking at to reform, matt. matt: all right, thanks very much. dani burger continuing to cover the credit suisse, archegos saga for us. it has now been two weeks since that story broke. and the cover of "bloomberg businessweek" really breaks down billowing, karen -- bill wang, karen archegos --who ran archegos, in terms of who he is, his successes and gigantic failure. i highly recommend reading them them probably being done with the archegos story. coming up, demand for chips is surging, but so is the industry's environmental impact. each new generation of semi conductors requires more energy, water and greenhouse gases to create. we will look into that story next. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." we are 41 minutes into the session and we are looking at kind of a soft day. the ftse has had a great week, especially compared to the softness we have seen on the continent and in the u.s. it is sort of taki