let's get back to ubs. equities did really well in investment banks at ubs.seems to be the area which we saw the bank shining. was this a volatility derived story? what was going on? armani, did say, sergio who i spoke with a few minutes ago, said the equities business did better than it looks. for the swissins franc results in equity trading, but if you look at it in dollar terms, it is 25%. in the derivatives business, it would be 37% gains. that would be better than their u.s. peers. volatility, although he said the beginning was euphoric, everything in february and march got back to normal. he was really upbeat about the entire bank results. listen to what he had to say. >> in addition to a very strong set of reports, the underlying numbers in terms of operating profitability were strong across the board, but particularly global wealth management and from a geographic point of view, in asia and the americas. but all businesses work in shooting to the strong performance. the interesting thing to keep in mind is investors will be looking at costs. they did

the market does not want from ubs stellar banking results.e extraordinary wealth management results. that is why we have seen the drop in the share price today. frominvestors want to see a wealth manager in particular is overdeliver on wealth management. if you overdeliver on investment banking, that is great, but that is not what we are looking for. mark: what does that mean next? where does it go from here? >> i think the only answer you can give to that is stay course. at the beginning of the year, ubs reach their target, they gave some sort of a strategy update, they combined their wealth management businesses, betting more on scale. you see them pushing more on growth, you saw that a new assets. new assets or even across the region. you probably will not see a big shift in strategy from ubs. for the investment bank you can say maybe there are some areas where they want to grow further, but i think the focus for this year will be wealth management. the risk is that you had a situation where markets were growing over a longer bhutto of tho

we'll tell you what's dragging shares of ubs down plus, yes, royal baby watch.he duchess of cambridge in the early stages of labor. she's in a london hospital the whole world on the edge of its atses. we're going to bring you the latest details later in the show [whistling] hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles. kayak. search one and done. ♪ directv now gives you more for your thing. your letting go thing. your sorry not sorry thing. your out with the old in with the new, onto bigger and better thing. get the live tv you love. no bulky hardware. no satellite. no annual contract. try directv now for $10/mo for 3 months. more for your thing. that's our thing. visit directvnow dot com >>> a market alert wall street pointing to a lower open investors gearing up for a massive week of earnings. >>> under pressure, ubs shares sinking despite a big beat we have exclusive comments from the bank's

ubs sinks to the bottom of the market they say certain markets are challenging despite the market beat. >> there's much more selection in the sources of ipos we are well prepared for this environment. >> and better margins boost phillips helping the deutsche health tech firm beat forecasts with sales close to 4 billion uros. >> we are becoming a digital company. we are focused on health care and improving the health of people we have made clear choices those are paying off i don't want to get ahead of ourselves. >>> the spread between the german and ten-year yield as they sell off. nears 3%. >>> u.s. president donald trump tones down his initial enthusiasm for north korea toning down the talk he says it's only a matter of time if they can reach a deal. >>> some eurozone pmi numbers out at this hour we've got the manufacturing pmi. it's at 56 that's against an expectation of 56.1 this morning and we look at the services numbers as well they're at 55. that is a slight beat on the expectation of 54.6. we've also had some numbers out in force from france and determi germany. it's 54.1. the

chris was, ubs, crosstown rivals. ubs is still pretty richly valued.o see how the two banks spend and very this spin in very different directions. -- spin in very different directions. a bit of a disappointment over there at ubs on that front. thanking, check out the performance that ubs had been because of that focus on equities, they were positioned to benefit in the first quarter. credit suisse, it was kind of disappointing. the ceo even have to -- he didn't quite concede but he said, he did not deny the fact that it was possible they will miss their revenue goal for the unit. theeas, he is relying on secretary to bring back. matt: let me ask you about amundi. where are they getting the growth? here?here do we go from how asia performs from here on out. i want to see where asia goes. that is my the question. guy: nick, great to see you. nice to see you on tv this morning. they comfort joining us -- naked comfort joining us. -- moon jae-in and kim jong on our sitting down and talking. there's going to be a joint statement. there's going to be a banqu

and canadian fans and they are changing, ubs says you want to keep and i on the downstream.n 5.2 billion. we have another big one to go at liquefied national asked. sales of lng rose 17%. barclays numbers heading, looks to be in line with estimates. if you look at the net operating income levels, that number coming in at 5.0 7 billion. the companyine with compiled estimate or a touch above. the 5.03 the company provided as they estimate. -- the estimate. revenue 2.8 billion pounds versus last year where it was 2.78. looks to be in the same ballpark as last year and the pretax which is.1 8 billion above the 790 million they reported last time. they look forward to returning increasing amounts of capital. this was a message we got from management at barclays last time around, last quarter and this is something they are talking about. see i.b. revenue 2.8 billion versus 2.87. let's speak to jes staley. morning. good to have you on the program. talk to me about the cib business, is this good enough? jes: the profits before tax were but alsoar-over-year the return on tangible equ

we can now listen to the words from the cbo -- the ceo of ubs.ergio: in addition to a very strong set of reported numbers, the of -- the underlying numbers show it is stronger across the board. standpointgeographic in asia and the americas. areall businesses contributing to the strong performance. reporter: what does this mean for the investment bank, which you have struck down and there are reports last week that you were debating internally the investment bank? sergio: if i can say that kind reporting.as bad if you look at our resorts -- our results, they have been very strong. we are very competitive. to compete, and investment banking is not about shrinking, it is about growing and being successful. it is very important to our wealth management and corporate franchise, in addition to serving our institutional clients. return in% on allocated capital is very difficult to see the merit of the reports. reporter: the 25% rise in equity trading in dollar terms. puts you generally in line with what the u.s. investment banks were reporting as well.

ubs shares are lower.chief executive this morning and asked what factors may be impacting client activity. >> when you look at the geopolitical picture, with retention is him coming up, the picture gets foggy. clients are feeling that. at the first quarter, exuberanttivity, an january, beyond what you would describe as the normal seasonal factors. muted client activities in february and march. francine: the person interviewing him is matt miller. a great interview. you focused on the bright spots. , which is wealth management. what can the company due to accelerate gains and wealth management? management, the profit before taxes missed the expectation, as did asset management. .hey had positive inflows they did not hit the profit targets analysts had been looking for. the reason is likely cost. have been going higher. they need to do what they can to keep those in check. forbank has higher costs .egulations, legal fees they have a case in france and endu.k. they cannot see the of right now. higher, trendin

today, joe tear anova, stephanie link, josh brown, aaron brown is with us, head of asset allocation at ubs. let's begin with the markets stocks climbing, dow is now positive for the year, for the first time since march all right, stephanie, you told us, you told us to focus on earnings you said don't listen to all this other nonsense. focus on earnings. the fundamentals, and they're delivering >> i did i did a lot. fundamentals matter. earnings matter. earnings revisions matter, and also what matters is the setup into earnings. the thing about the setup this go-round was we were down 8% from march a lot of stocks were down more than that, double digits that gave me conviction to buy some of the higher quality companies where i thought the fundamentals were quite strong and they would actually play themselves out sometimes fundamentals take a while, though, to work they may not work that day, they may not work that quarter, but when the market kind of settles out and when it comes back in, they go to the stronger player

mark: that is the ubs ceo. vonnie: it is available on tv go as well. it's time for first word news. >> france's hoping that the president can find common ground with president trump. he arrives after building bridges with the president. macron wants to offer more commitments to guarantee the iran nuclear deal. in tennessee, police are searching for the suspect in a restaurant shooting. a customer wrestled the rifle away from the shooter at the waffle house. hasorities say the suspect been arrested in july to the white house. guns were taken from him by the police, given back by his father. convicted eight paris terror attack suspect. he is been sentenced to 20 years in prison. he is believed to be the birth. he will be fifth in line to the throne. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. mark:,, china is expanding. now they are sounding the alarm. this is bloomberg. ♪ e alarm. this is bloomberg. ♪ vonnie quinn. counting down to the european close. china has been on a sp

i'm glad we are talking about ubs earlier.ile we see deutsche shrinking this business, we have seen ubs not only build their investment bank that add to cash equity. yourefinitely have to pick spots. that is an expert question. what is next? julia: the point is that up what -- at some point, when you lose market shares, it costs too much to build it back. scarlet: it would be news if deutsche bank decided to invest in something and broad in its footprint can all along, it has been about shrinking commission can, shanking. julia: got to do it that -- got to do it faster. still ahead, crude heats up. oil prices turnaround to we would -- we speak with rebecca babin. this is bloomberg. ♪ scarlet: that is some of our reporting by tick-tock from bloomberg. this is bloomberg markets. i'm scarlet fu. julia: it is never too early to talk about wine. let's get the first word news with mark crumpton. mark: a lot of chateau's in there. french president emmanuel macron and his wife brigitta have arrived in the u.s. for a three-day state vi

that started monday with ubs. >> a strong report from ubs investment bank, offset by weaker gains.went wrong and what went right? >> it is a tale of two halves, that is for sure. the investment bank has done fantastically, equities trading is up, the m&a advisory business has had a fantastic quarter. he feels vindicated in his strategy in keeping it light and not using too much of the balance sheet. investment banking is a smaller part of ubs wealth managementt these days is a bigger bit. wealth management people have been scratching their head today, and wondering what has gone wrong. >> and credit suisse is reaping its rewards from the pivot to wealth management. the swiss bank attracting in the first quarter the fastest rate in seven years. why do credit suisse investors have a smile on their face today? >> i think it is not just the investors, it is also the president himself. essentially, he has gotten two things right. he cut costs, took cost side of the business massively. he scaled down the volatile trading units, and he has been saying to focus on wealth management and he

the chief of ubs spoke about that. llure mayychological a drive investors to diversify and go back into long-term bonds. in general, it is hard to say. it is more psychological than anything else. alix: noise or signal? signal.noise than as we saw last week, as soon as that bond rate the tire, financials got a bid. financials all week produced stronger earnings results. not enough to get investors interested. but when the rates may tire, it did. higher, it did. this creates a lot of portfolio rotation and asset allocation shift. from a relative perspective, equities are attractive compared to bonds up to 4%. there may be a lot of accounts looking at this 3% level as somewhat consequential. alix: when you take a look at the dollar closing at a three-month high, it is still not the same strength you would expect based on the differentials between the u.s. and europe. is that a d.c. thing? >> it could be. what the fed is going to do going forward whether they go for four rate hikes or not, the backdrop is increasing defic

investment office, ubs wealth management. to see markets react more negatively to this tariff issue. we talked about trade with you in general. how do you think europe is positioned right now when it comes to the trade issues? it seems to be an issue between the u.s. and china, but trade in a global world involves everyone. geoffrey: and the core european economies that are dependent on trade. the risk in europe, we have been talking about cycles for a while. the trade war can cut a cycle short. there is a difference between the natural progression where markets can reprice growth and to suddenlyrterly being cut in its tracks. this is derailing growth. that is the bigger risk. that is where europe is most exposed. europe is affected more than the u.s. on that note because the u.s. is more of a closed economy. keep asking this question, it strikes me as a problem, it is coming, if the cycle is cut short, and the u.s. had into recession next year, when will the ecb exiting policy ? that generates real issues. geoffrey: the u.s.

cio at ubs.you with us. thanks for joining us. one of the things we saw in the minutes with the fed acknowledging these risks from trade tensions and weighing on growth, where we stand now in following the fed minutes, could we see any slower path of hikes from the fed if the trade tensions escalate? mark: the keyword is if they escalate from here. the fed path is based on what they see in the economic growth picture and the inflation picture and they recognize that trade tensions could eventually or other political tensions could have a real economic impact but right now, they are data dependent. we lean towards the four side of the three-for debate. i do not think the minutes change that. nejra: you acknowledged your the risks fromat these trade tensions and between the u.s. and china. you are still risk on though. mark: we are. there is a 20% to 30% chance of a serious escalation from here. it is too early to give up on the global growth story and too early to predict that this will evolve int

coming up later, we will be talking to a ceo at ubs. he joins us for an exclusive interview at 7:00 a.m. u.k. time. first let us get the first word news. >> thank you. donald met with his national security team yesterday to discuss america's response to an apparent chemical attack in syria. that came as theresa may's cabinet said it is partial to respond to the incident. china's overseas shipments posted a decline on seasonal effects around the chinese new year holiday. fell 2.7 percent in march after a 44.5% gain the last month. that left a surprise did -- surprise trade deficit, the first since february last year. aluminum is heading for its best 1987 as investors in the global industry battle with supply disruptions after the u.s. imposed sanctions on russia's imports. sanctions have rocked the market with all parts of the supply chain rushing to assess the risk and handling the company's metal. that surpasses its strange neighbor saudi arabia. this comes as the middle east after donald trump tented military action in syria. russia h

david: third story -- ubs. we know ubs for wealth management.er one in the world in that he had now, they decided we would like a better deal from you money managers. peggy: this is really interesting for me. i thought to myself this is another ripple effect of this dramatic fee pressure people are seeing across the industry. wet you're seeing ubs say is consolidated wealth management division's across america and globally, and we will take that and say to find and edgers, you need to cut us a break, because we are basically the amazon of wealth management. we are seeing this across the board in terms of money managers. for a long time, money managers had regional funds on their platform, and it was a detente in revenue share, but we are saying this -- seeing ubs put pressure on. david: everyone ones -- wants to get into wealth management big time. is there a competitive disadvantage if they really try to shave too much off the fees? do they run the risk of a fund manager saying we will not work with you anymore. peggy: my instinct is to say no.

ubs also raised fellow bank wells fargo from buy to neutral. whil chalacknowledging the challenges it faces due to the scandal -- today's shares finished at 53.26 up a fraction. >>> now back to the story that's been taking up all the oxygen over the pas couple of weeks, tariffs.il the stock market seems to believe that it's not going to lead to a trade war but instead are all part of the negotiation procou would never know it by the chinese state media who seem set on winning the pr war. eunice eun has more fromfo beijg us tonight. >> repter: if you only read the chinese state press you would probably believe that beijing just bested the trump administration. that's because the official press here has been reporting that china has just won the first battle in the u.s./china trade war. the papers here are citinp' president tr tweet in which he said we are not in a trade war with china. and quoti commerce secretary wilbur ross on cnbc where he suctested that thesens are all headed for negotiations. >> i think it's very difficult to put a specific

you -- ubs wealth management head of commodities, dominic.s tweets, are the prices artificially too high? >> he has a point that opec is essential in rebounds in the market. if you rebound, you reduce supply, what do you think, prices will go up. so from that says he has a point. opec has been essential in bringing down inventories. if you look at today we are at a five-year average. kathleen: we are seeing gasoline following surging now what we see in oil. is he trying to temper down expectations or bring it down leading up to the november midterms? think there are several issues here. there are higher prices that will affect consumers. maybe americans need to pay almost $200 more for gasoline. that hurts when you think about retail sales anywhere else. on the other side maybe trump wants to, there are still renegotiations or refinements with the iranian nuclear deal. that is something to look into. trump is not really settled with the deal, so if we lose iran, a supplier of oil, that is adding fuel to the fire. so maybe looking for an escap

ubs will double the number of senior level within three to five years.above junk. credit ratings for some of the biggest british banks could be affected. those regulations forced barclays two separate activities from retail operations. that is the bloomberg business flash. the chair is speaking in chicago. bob at joins us still on set in new york. you talked about the fact of the market needs to understand how the president operates. chair think the federal understands? result, do you think he ignores the trade issue for now? >> they put it on the back burner. it is a level of uncertainty. if you look at what is transpiring on the trade side, three to six months ago, the fed would have said the biggest risk was nafta. like nafta is moving towards a conclusion, some compromises. it is not becoming a major issue. orientation,'s tariffs that might go into effect six months from now, not something they will factor into the decision-making process. given the dynamics of the timing of inflation last year, we will in significant increases year-over-year inflati

we have already had ubs delivering yesterday.dit suisse reported net income which beat estimates. we are going to be speaking to tidjane thiam. tomorrow we will be talking to deutsche bank and barclays. let's figure out where we are with the sector. on the numbers this morning. tidjane came in and said many to focus on wealth management. today's numbers prove that that that was right. >> absolutely. if you look at the new money flows we have seen, they were 20% higher than a year ago. in terms of margins, it is something we have been worried about and what management, pressure on margins but the margins seem to be holding up a lot better than ubs. i'm an investor, is becoming less volatile because the portion which the investment bank kind of contributes and become smaller and smaller so in many ways, it is an easier business for investors to understand because volatility will be generated. forn: that was key reason tidjane thiam's pivot. it helps if you have a big wealth management business to pull back on. that is something tha

isning us from ubs in davos the ceo of k2 advisers. good morning, david. i spoke on bloomberg radio and were kicking around the idea that the market still struggles with understanding president trump. this morning, we understand he will rejoin the tpp. how do i invest in this environment with his kind of turbulence? if you think about the commentary he brings to the market, he is opening up the topic and the subject matter. he starts at the extreme and we end up act in the middle. maybe slightly off center one way or the other. investors are typically shocked by the initial rhetoric or commentary, but when we look at it, after the initial commentary, we see them move back to a more neutral stance. for example, we saw china and he is now addressing the tweets and commentary about a trade war and is now talking about open commerce, open trade globally. he is topics that need discussions and i don't think investors should get caught up in that short-term noise. they need to think about things on a long-term basis. regardless of what caused it, all of this vol

final trade time rob, our guest from ubs private wealth management. first. >> we are still in the midst of bank earnings. >> $6 billion, aum. >> it's nice. >> top 100 >> thank you thank you for that >> are you writing a book like scott? >> i'm not writing a book yet. >> go ahead. >> regional banks. kre, i think you can buy it still. it has come in, i think the time is now >> pete. >> alibaba, earnings coming out may 4th. keep an eye on this name, huge activity. >> american air. i think it has lagged the other airlines and i don't think it is that deserved >> tim lavin all this what have you got. >> you are saying it so softly >> it's okay, j im. >> intel as the final trade yesterday. i said it was going to to break out to new high, a new 18 year high, once it does that it tends to go higher the chart looks good, fundamentals are good, they report next week intel as a long here. >> are you all right over there? >> like you tumbled or something! [ laughter ] >> joe >> twirlio >> that does it for us thanks for watching. dow is down 20 points, "power lunc

it is the ubs global wealth --estment management management investment summit.t is still snowing here and we are at the ubs level wealth management investment summit and i am joined by the head of investment strategy at axa. thanks for giving us some of your time. we have the minutes from the fed, are treasury yields going to move higher from here? the fed was clear that -- also confirming that trend is picking up. feds highly likely as the continues its pace of normalizing. does it mean for the 10 year yield? guest: we had some consolidation over the past few weeks given the risks on the trade tensions. clearly if it is -- if inflation , tended 20 basis points. nejra: you're looking at 3%. guest: that sounds reasonable. nejra: despite the volatility we had and the increasing risks around trade tensions and other geopolitical risks, you have a pro-risk stance, where are you allocating or advising to allocate within risk assets? we are keeping pro-growth tilting in our locations. we continue to believe that equities are the best ways to be at the current juncture

. >> a strong first-quarter performance from ubs's investment bank offset by weaker results from itst investment unit. will it right and what went wrong? >> the investment bank has done fantastically. equity trading is up. the unit head can feel vindicated in his strategy, that is the strategy of not using too much of the balance sheet and being capital light. banking is a smaller part of management is bigger. and wealth management, people are shaking their heads wondering what has gone wrong. suisse is reaping the rewards of its ticket to wealth management. the swiss bank attracting new management in the first quarter. why do credit suisse investors, why do they have a smile on their face today? >> is not just the investors. tidjane thiam has gotten two things right. could bring, he cost out of the business massively. and he has a saying to focus on wealth management and he has been delivering. that is notable because it is an industry filled with the top -- they seem to do differently than the rest of the markets. >> they are reported a first-quarter loss but they are showing momen

they are expecting more from ubs as well. thank you for joining us. , cio, plurimiong wealth, and kamal sharma, director of g10 fx, bank of america merrill lynch stay with us. we will check back in markets and a second. this is bloomberg. ♪ ♪ mark: this is "bloomberg surveillance." i am mark barton in london. the brexit process is being discussed. this option takes you through every asset class and gives you a splattering of prices. this is the equity column. stocks are falling today. treasury yields rising. stocks inclining on both sides of the atlantic. the dollar is in ascendance. year yield rises the highest since january, 2010. we are seeing bond yields rise today. look at the commodities board. even gold is declining by 0.5%. what a busy day on the earnings front. this is the busiest week for european bank earnings. thiam, after the bank attracted new assets at the fastest pace in seven years. key contributions from the asia-pacific. by -- profit and revenue did better than the bank expected. thiam entering the final ph

coming up we speak to ubs cfo. that is next. this is bloomberg. ♪ ♪ mark: live from london, i am mark barton. vonnie: and from new york, i am vonnie quinn. rising, but rising costs may hurt the earning plans. earning plans. and here with us as ups's cfo. congratulations. phaseo us about the next of the strategy for ups. >> sure. there are three things going on at ups right now. not only are we announced yesterday the first step in our transformation initiative, we are also expanding our network and opening some buildings in andlater part of this year, we are adding new capability was saturday operations where we are at 50% of the populations. last year this time we were covering 3% or 4%. you deliver on -- a phenomenal amount of packages each today. tell us why it may not be a ceiling. is not a ceiling, it is more about what services we are adding and a what is being consumed. the types of packages that are going across the network are different. the started out as books a decade or two ago, and today, furniture, refrigerators,

ermotti promoted the strength of the overall ubs operation. think it is due to the fact that in addition to a very strong set of important numbers, the underlying numbers in terms of profitability were strong across the board, particularly in the global wealth management and from a geographic standpoint, asia and in the americas. but all businesses were, you know, contributing to the strong performance. joe: what does this mean to the investment bank, which has struck down, and reports that you were debating internally? sergio: i cannot really say. i can say that report was a little bit of fool reporting. if you look at our results in the last five years, they have been very strong. we are very competitive. we compete in the u.s. compete, and investment banking is not about shrinking, it is about growing at being successful. it is very important to our wealth management and corporate franchise in addition to serving our institutional clients. 25% return on allocated seetal is very difficult to the narrative of those reports. reporter: and in 2

ubs is in the ultrahigh worth phase. but there areive, a lot of things in their favor. they want to double their market share. mark: how can they improve and fix -- they are already dominant in fixed income, currencies. speakingamie dimon was on god who and talking about the fixed income business really growing despite headwinds in the business in recent years. he sees theing banking up to throw in. it is a long-term view on the bank growth structuring. that is how they expect to grow. mark: on the investment banking side, we are hearing about many european players who want to boost their investment banking presence in the u.s.. what about the flip side? what could jpmorgan to outside the u.s. when it comes to expanding the investment bank? sonali: that was something that directly answered in the letter. he says that while in the u.s. about 10% market share they have in investment banking, it is about 5% in asia. this a real opportunity to expand and i think is an injured in time when sony global players are looking to decrease their presence. vonnie: how do they expand

sabemos que existe una compaÑÍa de transporte que estÁ tomando medidas de seguridad: >>> se trata de ubeque coincida con la placa que usted solicitÓ. >>> la policÍa de san francisco busca a los sujetos que apuÑalar o a dos personas. el viernes atacaron con una rebaja a un hombre de 26 aÑos, el domingo en la misma calle cobre 57 jalado y se encuentra en estado crÍtico, si tiene informaciÓn comunÍquese con la policia. >>> encuentran a un desamparado sin vida y su cuerpo una caja de cartÓn el hallazgo se reporto ayer a menos de una cuadra y el policÍa buscar posible responsable de su muerte y eso pasÓ en el barrio chino en la ciudad de san francisco. >>> en estados unidos un poco mÁs de 6 millones de personas a un de las recetas. sandra bermÚdez habla del esfuerzo que hacen las autoridades para compartir el problema. >>> trato de llevarlo un lugar donde para reciclarlo. >>> se guarda. >>> i allÍ para cando vuelva a suceder >>> este una prÁctica muy comÚn sin embargo las consecuencias hach pueden ser: >>> en el control de drogas de estados unidos se, 4 millones de personas abusan de las sust

and dominic schneider of ubs wealth management to talk about oil in the news.gainst opec via tweets, so we will see what he says about oil. that is it from daybreak australia. all the action next. this is bloomberg. ♪ s bloomberg. ♪ ♪ 7:00 a.m. here in hong kong. welcome to "daybreak asia." thetop stories this monday, imf warns rising protectionism threatens the global economy. things are still good but the risks are out there. stephen mnuchin hits on a trade truth with china. beijing says they welcome a chance to resolve their spat. kathleen: just past 8:00 a.m. hearing tokyo. -- here in tokyo. president trump dials back on the optimism. the white house says opec is keeping the oil price artificially high.

above the 3% mark >> equally what we've seen with the likes of other banks, with credit suisse and ubs, that the market rewarded those banks for going back to their core businesses, for focusing on wealth management in the case of ubs, credit suisse shrinking the business, we've seen that in the earnings one thing that steve always talks about is the price to book ratio. as far as deutsche bank are concerned, from a value proposition play, they are trading at a heavy discount relative to their european peers. perhaps from a buying opportunity perspective, if you were willing to give them the benefit of the doubt, now is the right time to do it. the price to book is 0.5, others are 0.91 >> the challenges for any german bank, in the listed space, in the private lending market, is that you are taking on the state banking system, where they can afford to operate with thinner margins, and largely lower costs. so i think that the challenge for deutsche bank at this point is okay, you want to take us back to a time where the fee income and the recurrent nature of that income stream will be su

analysts from ubs joining us on the phone. i was reading your earnings and you seem satisfied with everything. see car is the question -- car is the question from here on in. brennan:'tis the time of year to start thinking about it, that it has been less of a wildcard in prior years. i am expecting capital returns will increase but that was one of the big questions on the call today, especially in light of the fact the fed has issued new proposals for adjusting the capital buffer spaced around the stressed outcomes out of c-car. vonnie: we had an interesting reaction. we saw it up 2% in a relatively flat market. why did investors give morgan stanley a pass? brennan: i think that the idea here is that we had a very strong results and morgan stanley had underperformed coming into the prince, so it was more about set up than anything else. i think we are seeing -- we had seen some concern around capital and such yesterday and goldman announcing their call, and they would bring their buyback to zero, which raised real apprehension

we're joined by steve whitaker from ubs to talk about where the company is headed from here.g us. >> good morning. >> street team is a bit split. steve tusa this morning said our bearish thesis remains in tact where are you? >> about 8% upside from today. and the reason i see that, it was actually the first piece of good news, first decent quarter we've seen in a long time from ge, the absence of negative knews is actually positive when i think about what's really going on, there's tremendous weakness in the power markets. they've got challenges in multiple business units. aviation was strong. our evidence lab saw after market picking up significantly. and it did it was even better than we thought. health care was also positive. and i think as they get their arms around the cash generation from quarter to quarter, they start to eliminate some of the downside questions that are out there in terms of liabilities that are outstanding, such as the billion and a half charge, reserve they took today. as those start to put away, investors can start to think about the fundamentals of

jason katz of ubs. dow and s&p finish higher for the second day in a row. the nasdaq snaps a five-day losing streak. that will do it for "countdown." melissa: corporate profits fueling stocks, the dow ending up 241 points. the s&p 500 and the nasdaq closing firmly in the green, david asman. david: a lot of news to report. i am david asman, glad you could join us, this is "after the bell." more on the big market movers but here's what else we're covering for you. it's a very busy hour. melissa: it is. david: not only in washington, on wall street, all around the country and the world, the secretary of state was just confirmed along with a key ambassador, our ambassador to germany, while the nominee for veterans affairs dropped out as the president lashes out, the latest on all of this from the white house. >>> a pennsylvania jury finding bill cosby guilty of all charges. live outside the courthouse with the latest. >>> and we're moments away from what is expected to be a big earnings report from amazon. we're breaking down the headlines right now, and we wil

. >>> plus, new developments overnight on that shooting at the ub tooyoutube headquarters.more information on that woman shooter and what motivated that attack. that's coming up in five minutes. right now at 5- we are live at youtube )s headquarters in san bruno where >>> right now at 5:00, we are live at youtube's headquarters in san bruno where the city's police chief just spoke moments ago after a woman opened fire on the campus. this morning we continue our live coverage right now on "today in the bay." good morning. and thank you for joining us. i'm marcus washington. >> and i'm kris sanchez in for laura garcia. we'll get to the latest developments on youtube in a moment but also want to get to the forecast that's impacting your commute. maybe node today but tomorrow and your weekend as well. >> definitely will. today is the last dry day in the bay area, and as we head into tomorrow, a portion of our day, but it's definitely going to come in the form of pretty widespread rainfall. right now your temperature for san francisco is starting in the 50s. fairly mild. if you

jason katz of ubs. dow and s&p finish higher for the second day in a row. nasdaq snaps a five-day losing streak. that will do it for "countdown." melissa: corporate profits fueling stocks, the dow ending up 241 points. the s&p 500 and the nasdaq closing firmly in the green, david asman. david: a lot of news to report. i am david asman, glad you could join us, this is "after the bell." more on the big market movers but here's what else we're covering for you. it's a very busy hour. melissa: it is. david: not only in washington, on wall street, all around the country and the world, the secretary of state was just confirmed along with a key ambassador, our ambassador to germany, while the nominee for veterans affairs dropped out as the president

scott wapner and the traders is back in two minutes >>> welcome back micron is under pressure after ubs initiated coverage of the stock with a sell rating the firm sees a more than 30% downside ahead it's our call of the day, a call on a one-time weiss favorite i think you're out of it now you've been a believer >> i was a believer. and i did pretty well. you know, that groan we're hearing right now is pete in hawaii moaning at the fact that he didn't listen to me >> arizona >> arizona he doesn't even know where he is but i agree. >> it's about dram, right, oversupply >> people got emboldened because there was a nitrogen outage at one of their plants. now that's been fixed. when you love these stocks, you think they're growth stocks and you look at the multiples and you say, i've got this growth, six, seven, ten times earnings, that's when you want to sell it. because these are commodity companies. they're like gold miners, give them a dollar, they'll put it into the plant to make more product. i don't know if today is the end of the cycle but the end of the cycle is nigh, we're going t

for ubs at the ebs, they would say this is an opportunity to step in.lowing out of equities, do you believe in that sort of trade line of by the dips? gregory: we are positive on u.s. equities last -- like last time we were your guests. earnings season is looking positive. we have 85% of s&p companies have released earnings which have beat expectations. there was a recent dip in some of the eco-data out of europe and there has been a vindication . secret eyes global growth should be supportive. good morning. interesting to look at the ubs story because they are the biggest bowls on the s&p 500. they have a and of your target that is among the highest among the strategists bloomberg tracks. -- it ist does slightly confusing but it shows you the extent of the outflows s&pave seen that track the 500. do you expect to see a continuation there? this moves away from u.s. equities to global equities, would you expect to see any change in that trend? gregory: it has to do with of tech.' perception there is a lot of talk about tech regulations and if they scare

steel was initiated with a sell rating over ubs. a possible fall in prices and a structurli d in steel demand. the price target is $30. the stock closed at 37.50. >>> coming up, investigators zero in on what may have caused that assuming west airline engine to blow abart. >>> if you couldn't pay your taxes yesterday, because the irs website went down, you can now. the website is back up and running. anecause of the glitch yesterday the deadline to file was extended to midnight tonigh the house i scheduled to vote on a bipartisan bill today, making major changes dhat agency, including giving taxpayers new rights and protectis. >> as we reported yesterday, starbucks is going to close its 8,000tores here in the u.s. for one afternoon in may to conduct employee anti-racial bias training. one estimate puts the cost of that for the company at about $12 million in lost revenue. that's about 20 of their daily reven revenue. >>> investigators are now zeroing in on what caused a deadly engine failure on a southwest flight that had to make an

. >> ubs took hershey to sell on cocoa prices aluminium is coming off the strongest week since 87. >>andated by the federal government the second half of the banks, after the review, do you know they traded up dramatically in the second half versus the first half the banks are reluctant to pound their chest and the regulators say, wait a second, they're being too aggressive you can't punish bank of america with a 3% loan growth. against a same multiple as companies that are cutting numbers. actually, it's hershey. >> my question about input costs, airlines, and fuel. hershey and cocoa. coke and aluminium it's classic is the money going to start to move from equities to commodities in late cycle fashion? >> that's an interesting call because so much of what we're seeing, commodities is somewhat oddity we're going to hear tomorrow ubs started with a neutral i mean, the government is mandated higher steel prices the government is mandated higher aluminium prices. the government mandated minimum wage. >> do you see what the realtors said about lumber and what it's doing to housing prices?

. >> the ubs evidence lab which powers a lot of ubs' research, the evidence lab which is like the underwriter's was more like csi for wall street. >> it could be csi ll cool j comes out today and says we dislike sell micron, sick lickal memory concerns, big estimate cuts ahead. this is -- this stock acted poorly since it reported, almost straight down. the impact of this call actually could overshadow a lot of the buy recommendations they have because we've been waiting for prices to collapse we know flash has gotten weak. this could color -- >> what is the evidence behind this call though, jim? what are they basing it on >> it's an evidence lab. i'm aware of that. >> i don't know, david -- >> what is the actual evidence >> the evidence lab has things that they are able to see things that we can't see. they can spray and see blood spray -- >> prices coming down. >> yes. >> as a result of their forensic work. >> have you been in a lab? who are you to criticize >> i'm not. >> bunsen burner. >> this micron, if this happens and they break micron, who knows when it's going to end. >>y where does it

look at micron ubs initiated coverage of micron with a sell at $35 the stock was at 50 saying there wereoing to be issues down the road i think that's a major problem for the markets because expectations are sky high. not just for this quarter but the next three quarters, particularly in the semiconductor groups this is very, very sensitive the market's risk is to the upside right now because we've got the concerns about earnings that are out there look at nvidia in the middle of the day. no new news here on nvidia about 1:00 we saw very large sell orders come in and the stock moved down, took semiconductors and the rest of the market down. it turned out to be temporary but this is an indication of how sensitive the market can be to bouts of selling. >> bob, thank you very much. some stocks to keep an eye on into the close earlier today on "squawk on the street" peter navarro reiterated the president's strategic vision take a listen. >> his strategic vision is to get to a world not dominated by massive trade imbalances driven by nonreciprocal trade practices but, rather, to a world of fr

they say they're disappointed about what was simply an misfort ub it. >> oh, it was just about dressode. oh, it was just about a cell phone. can you call it that but we know what it was. >> in san francisco, job than bloom, abc news. >> a proposed any tich say collected 9 hoon,000, more than 3 rit iks tay services tielt honey a. i'm confident that fot will get the right of what they wanted to vote on before. doctor existing. >> the proposed ballot myself myselftime now it 576. check your medicine cabinets it make sure they don't end up in the world and. . >> you can teak yr bills for core but not as abruptly. >> the glait disdj pond and pr the >>> according to our media partner, the price to visit will cloum to $15 per person on january 1st. an annual pass will increase from 45 $ to >> still ahead, how kwar would you go for a date? the ray area faen but first asut we head to break here's a lieiee route korb kwrnl moving along on the embarcadero right there. lisa will have your full forecast in just a few >>> good morning, everyone. the time now is 5:40. we're taking a look outside. h

tom: let's have a moment of silence for ubs.plain it because i other thanstand it, this is the complexity of the european banking system. europeanifully capture banking. where will the ecb be in five years ? we used this chart to explain the massive challenges developuro reform to the banking union. over the medium-term, the intention is to make the eurozone more stable. two essentially take pressure off of the ecb. the institutional framework of the eurozone needs to become more solid, stable, and we need to improve the buffers for recessions, deeper sessions. that would also be -- deep recessions. that would also be a really for the ecb. we have an important summit at the end of june when some banking-related issues will have to be tackled and important decisions made. mario draghi and his colleagues will follow closely and hope eurozone politicians hesitationme their and make real progress. was a headline from angela merkel's spokespeople about trade and they are expecting tariffs to come on may 1. how many questions will mar

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that started monday with ubs. >> ups's investment bank, what went wrong and what went right?e investment bank has done fantastically, equities trading is up, and the mma advisory business is not a -- has had a fantastic quarter. 's feels vindicated in strategy and not using too much of the balance sheet. a smaller banking is parts and wealth management is a bigger bit. wealth management people have been scratching their head today wondering what went wrong. earnings were a sliver underestimates but that created a negative market reaction. >> the pivotal wealth management. attracting in the first quarter, why do credit suisse investors have a smile on their face today? >> it is not just the investors, it is the president himself. down onosts, he scaled the volatile trading units, and he is been saying to focus on wealth management and he has been delivering on that. that is notable because it is an industry filled with topline pressure. they seem to do something differently than the rest of the markets. barclays reported a first-quarter loss while the bank of beat trading expe