we are full swing with results, hsbc and ubs. manus will be sitting down with the ubs ceo. let's kick it off with hsbc, first-order results, a clear beat, all regions profitable. the u.k. bank reported pretax profits of more than $1 billion. we will provide an update on a strategic plan, and its dividend view in august. they did reiterate for 2021 the dividend is off the table. ubs posting an unexpected loss, $774 million hit from the collapse of archegos management, joining morgan stanley in surprising investors over the extent of the impact from the hedge fund's implosion. ubs has been mum regarding what is going on with archegos. over more than $700 million. regardless of that there was some good beats for ubs. you do not want to miss manus's interview with the ceo, this is his second quarter at the helm. that is at 7:00 a.m. london time right here on bloomberg television. that's get straight to our interview with hsbc cfo, ewen stevenson. >> that was our best quarter since the pandemic began. profits up almost 80%. very strong recovery in other parts of the world outsid

more of what's going on with ubs. they posted an unexpected $774 million hit from the collapse of archegos. manus spoke to ralph hamers. take a listen. >> we are very disappointed at the situation. we are taking it very seriously. we are reviewing the different prime brokers' relationships. we are viewing the risk management process in order to get the lessons and make sure it does not happen again. manus: will you reduce leverage and reassess how you and to the prime brokerage -- land to the prime brokerage -- lend to the prime brokerage and family offices? ralph: there is two elements we are picking up. their first one is the level of transparency in some of this business, as well as the concentrated positions that were built up. as a combination of those -- it's a combination of those that we have to take into account going forward. manus: will you demand greater transparency from those family offices going forward? ralph: absolutely. that's the big lesson learned. it's not only that all banks should demand that, w

what does ubs do? what does credit suisse do? they have both done reasonably aggressively on the private bank wealth management route. if you think about ubs and its retrenchment out of things didn't come, which is very similar to what we saw with deutsche and equities, they have become far more selective in the businesses they are in, so when you think friday sort of -- when you think for a sort of non-investment banking for ubs, they certainly punch above their weight, and i think globally, you forget quite how big the u.s. banks continue to become as europe spends a decade in turmoil. jonathan f: how's this for a stat? it comes from a report here at bloomberg news, coming from the fed data. total loans and leases out to a record low as a share of deposits. we talked about that subdued loan demand in the first quarter. does that continue into q2, q3? jonathan t: well, we know that the behavior of the corporate and retail last year has ramped up deposits, and credit carnes end loan facilities have been paid down, so that will co

we've had ubs results coming out tomorrow.rning, all about phillips and a banging quarter for them on all fronts. manus: absolutely, margins rising in the health care business, likewise in diagnostics. you're right. i finally left dubai, nine months since i've gone on a plane. three tests later in the space of 48 hours -- to give you some context, it is important we get out and talk to them face-to-face and get an idea of how the business are going. can rough hammers deliver what armani delivered in the backwater? what is his stance for being there? we had the phillips numbers. i think there's a lot to deal with, uneven opening around the world. what is the underlying piece in the new york times? annmarie: the fact that americans, if they are vaccinated, could be coming into europe this summer, that goes back to the bank of america piece. i think all of my friends in new york that have been vaccinated now plan on it after the underlying interview to the new york times. manus: absolutely. it gives nationalism a new meaning. let

ubs, $774 million, not material. it is in the context of what the earnings profile was for that quarter relative to what your competitors lost. i don't get it anymore. tom: you do leverage and you are successful, so you do it again and you leverage up further, and you do it again. i would suggest that the leverage up by these firms, their exposure to a family office, it is a hedge fund, their exposure was once successful, twice successful, 3, 4, 5 times, and then you are not. you see that constantly when you study failed hedges. jonathan: don't you think it is rich if a bank says we were not required to disclose until we reported the earnings this morning? at the same time, follow-up by saying we need more disclosure from client. how do you talk to the shareholder about that? they are not willing to disclose things like this ahead of time. tom: one of the little secrets of this business is how corporations vary in their tone to shareholders. jonathan: some of this has been tone deaf. there is a price action. good mor

ubs shocks with an 861 million dollar archegos hit. buybacks are back. bp jumps at gas trading profit, allowing it to return money to shareholders. bruno le maire expresses frustration again that the eu is falling behind, saying that the region has lost too much time. he says china has resumed its growth. the u.s. is booming. the eu must remain in the race. let's talk about where we are with european markets right now. the stoxx 600, to be honest, down 0.2% today. it is going sideways, and it has been for the last couple of weeks. last week the first down begin eight -- the first down week in eight. what i am not getting is that earnings are going to be the catalyst to drive us forward. we will talk about that more in just a moment. the other thing we are watching carefully is what is happening with copper. are we heading for $10,000? alix: if we look at the s&p 500 metal and mining index, they are all really exposed to copper. that is pretty much up just 0.1%. within the s&p, industrials doing pretty well, as well as materials. it is interesting where y

coming up, david left of its of ubs -- david left of its -- david lefkowitz of ubs.t will corporations do with all this profit? stay with us on bloomberg radio and bloomberg television. good morning. ♪ ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. ♪ tom: "bloomberg surveillance." in morning, everyone. -- good morning, everyone. jon ferro is off today, but it is lisa abramowicz and myself. europe closed, u.s. open. wti holding on there. gold under $1700, comes back over the last number of days, $1728. the fixed income space was a little green on the screen. flat on the 10 year. the 30 year gives me some elevation as well. let's go to r. bostick. romaine: tesla had those numbers over the weekend, 185 thousa

barb: yeah, there are, so we're working on an ube latte. has asked us to work on a matcha-green-tea latte. lemonis: who comes up with all the flavors you've come up with? barb: kurt does. so my very best friend, our family friend who's like a brother to me, and i call him my business partner, developed the coffee. lemonis: do you own 100% of the equity? barb: i own 100%, yes. lemonis: but you treat him like a partner? barb: of course, yeah. lemonis: but the paperwork -- barb: does not say that. lemonis: like, if you got hit by a bus, nobody would know other than you and him. barb: that's right. lemonis: okay. barb: this is kurt. lemonis: how are you doing, my friend? nice to meet you. kurt: nice to meet you. lemonis: how did you guys meet? kurt: got the entrepreneurial itch, and i opened my gym with her husband 16-ish years ago. barb: 16 years ago. kurt: so she came in every day and helped me for nothing. barb: the gym eventually closed down, but... lemonis: the gym lose a lot? kurt: total, probably half a million. lemonis: all gone. kurt:

great to see the success you are having at ubs luke kawa, ubs asset management.e tuning into ppi, i am always tuning in for michael mckee. at 8:30 we are waiting for those numbers to cross. i understand it is refreshed and try again. michael: i am here but the bls is not. under the trump administration they decided to get rid of the lockups where reporters were given the data in advance and were able to write stories and sent them out. to be fair, it also came about because of the pandemic. they did not want to lock a bunch of us in a small room. this is the downside. the computer goes down and all of wall street does not have the information. ppi not the biggest mover in the world but you can imagine if this were jobs day what kind of reaction you would have. tom: i will revisit a question that came up this past weekend. somebody said can you trust the data? give us an update, and this goes to the national association for business economics, can you update us on the quality of the bls data? michael: the quality is good. they have made an effort to let people kno

back to ubs, one area ubs likes is denim, noting shifting trends from skinny jeans to looser fittingelieve that names like levi will benefit from the shift baggy pants are number two fashion trend for girls. >> rahel, thank you. >>> we are ready to answer your questions next you can send one in by video and, yep, we will play it on the air. e-mail us, askhalftime@cnbc.com. we will be back right after this al advisors create personalized investment strategies to help you get back to your future. edward jones. tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. will there be an ev for me? what about me? one for me? you mean us? what about me? and me? how about us? yeah, how about us? great question.

deutsche bank used to be the bad boy bank, now it seems to be ubs. is this as good as it gets given the low yield environment? >> there are a few things that come through for the banks. market volatility which we think is going to remain is helpful for these banks that have investment banking. the loan loss provisions were pretty high. those loan losses are coming in at much lower levels. we have had a bit of a move up. >> i want to move on to a report. you say 40% of investors are looking to increase stock holdings. what is driving that 40%? >> it is a combination of improving outlooks on the economy, improving businesses that we survey investors, when we look at the outlooks, people are feeling more optimistic than they were. there is concern around paying in cash. there may be an influence on some people thinking. annmarie: if they don't move into stocks, what are you seeing investors interested in? >> people are focused on being invested. technology space is an area they need to get more involved in. 63% of investors say sustainability is going t

arend kapteyn of ubs, things a lot. this -- ebs, thanks a lot -- ubs, thanks a lot.s is bloomberg. ♪ this is bloomberg. ♪ ♪ alix: we are rounding out the markets over in europe. now it's on to friday. the ftse 100 again the performer in the space. we will get to the y in a minute. if you are looking at travel and leisure, a reopening stocks doing quite well. users feeling optimistic about the trance does that could open up with her getting a summer. you have basic materials leading the charge. that's why the european stock market looking at basic materials performing better. i want to highlight what's happening in italy, superstrong buying commit. it's a buying bond kind of story. you are looking at budget deficit of gdp about 11.8%. still going to buy. we are seeing this across the board in the u.k. as well as the u.s.. down by six basis points. let's get to some of the sectors. just kidding. one story want to keep hitting is what's happening with russia and the u.s.. also quite interesting. the rumor comes out overnight and then you get an early initial reaction fo

leslie falconio, ubs senior strategist.go, we had a statement from the white house led by jared bernstein. here is the title, "pandemic prices and assessing inflation in the months ahead." they expect what we see in the months ahead to be transitory. here is a white house right now looking to control the narrative around the next several months because they are looking to do a whole lot more. the last thing they want is for media organizations and individuals, the public, the electorate, the officials to run away with this idea that it is anything but transitory and hint at their effort to do even more in the months and year ahead. tom: tomorrow we get cpi. jonathan: it has everything to do with that. how did they control what the messaging looks like at side of that? tom: they don't. we saw a list of some ppi statistics this morning. the markets will react to it as it always does. lisa: and they are not alone. i was looking at a long time bond bull that has gotten it right again and again, and they expect psychosis around

want to get to mark haefele now, ubs wealth management global cio.r take on the rally we are seeing in the commodity complex? how do you play it? mark h: we like commodities. i think what you are seeing is a realization that the global recovery has been underway in asia, but it is continuing, and it is now online in the u.s.. europe is not even online yet. that is one of the things you are seeing here. secondly, i think there is reason to believe that both in terms of policy measures in the u.s., but hopefully a reduction in tensions around the world, that the dollar could weaken further, and then you have the inflation side. so a lot of things point to adding commodities to a portfolio. we might not take that exposure directly through the commodities, but try to play some of the equity sectors that would benefit. guy: talking about what he's, what is the relationship, and how do you see that relationship? bloomberg crunched some of the numbers. iron ore futures, 30 day correlation to the u.s. equity market, 0.9. to the euro stoxx 50, .8. it feels li

joining us now is stuart kaiser, ubs had of equity derivatives -- ubs head of equity derivatives research, and zachary griffiths, wells fargo securities rates strategist. are we going to get it? >> i think 3% sounds impressive, but by the middle of this year coming to be 2.25%, so we think you have growth that looks like is going to be extremely strong in 2021. really any economic number recently has pointed to that. we also think we push yields higher for the remainder of the year. guy: stuart, the data are good. the bond market is looking ahead and trying to figure out how high it needs to go in order to have a realistic assessment of this growth and how it should be priced in. are we moving fast enough in markets? we've had a very early stage reflation trade. the cyclicals have done well, the small caps have done well. are we already moving to the next phase of this recovery, where you have to go into mid-caps, etc.? stuart: that is a good question. we've had this question a lot recently. at this stage of the recovery, how do i trade it? early on, people were focused on things like the

joining us with more is david left of its, ubs -- david lefkowitz, ubs head of equities. what happens to the market? how do you play it? david: thanks, alix. we don't find much of a relationship between changes in capital gains tax rates and market returns. the simple fact is that there are much more important drivers of markets, whether it be head -- whether fed policy, what is happening with earnings. those are much more important than capital gains. the other really important point i would bring up is that taxable domestic investors are only 25% of the overall market. we are talking about 25% of market participants that might be affected by this. it is actually going to be smaller than that because it is only thoing than $1 million. the other 75% of market participants could easily step in and take advantage of any price dislocations that come out of this. there could be some short-term volatility, but don't think this is a big market driver. guy: a couple of other points that are really interesting. you talk about the fed and the business cycle. i am looking forward t

some ubs compensation is still not being discussed, though that banks chairman has made his positiony clear. manus: there you go, not a man to let go. he credits the ceo job which starts today. a beautiful package there, staying with the banks, wells fargo jumped the most in almost two months after the profit stored -- sword sevenfold, giving scandal weary investors. romaine bostick spoke to the group cfo. let's take a listen. >> it's a good thing for the overall economy and the country. they have more money than they did pre-pandemic. it's impacting the short run long balances. you're seeing prepayment levels in the credit card business that are high. are seeing less need to borrow money on the consumer side but also the corporate side. as the economy starts to gain momentum you start to see a little more normality in life. >> the wells fargo cmo speaking about the health of the u.s. consumer. three down, more to come. beating estimates thing to a boom in investment banking. next up, bank of america and citi before the u.s. open today. joining me to discuss is dani burger. what caug

ge, ubs goes to 17 calls on the airlines as well. 'rba i fm e x. wee ckn a minute when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders—they're made by them. thinkorswim trading. from td ameritrade. >>> it's another friday and an opportunity for us to take a look at spacs, something that we had done quite frequently of course, during the course of the frenzy in spac filings, offerings, and deals that has slowed a bit, but there's no doubt that they continue to capture the imagination of certain investors, and certain have contributed to significant fee generation from the investment bank, both from the underwriting ipo side and from the merger side, and that continues to be the case the biggest news though, perhaps came recently, from the s.e.c., which as we all discussed, certainly

ubs.rter rise with the largest wealth manager revealing it took a $774 million hit related to the archegos trading scandal. ubs exited the remaining positions this month any losses in the second quarter will be quote immaterial stock number two is snapchat shares dropping after the camera company announced plans of $1 billion in convertible debt. snap intends to use the proceeds for working capital and operating expenses stock number three gamestop shares jumping raised more than $500 million in the stock offering as it accelerates to ecommerce you go, roaring kitty. gamestop up 8% in the pre-market. >>> on deck, a good old fashion billionaire space race battle. one side is jeff bezos' blue origin and nasa's moon contract with billionaire elon musk's spacex we're back with more after this. ♪ ♪ i had the nightmare again, maxine. the one with the lollipop— no, the other one. where the children go to the candy store, but it's out of wonka bars... it's ok, wonka. there are proactive ways to he

v they are not going to be in things like ubs. . �*, ., like pubs. there had been quite _ like pubs. that's right. there had been quite a _ like pubs. that's right. there had been quite a lot _ like pubs. that's right. there had been quite a lot of— like pubs. that's right. there had been quite a lot of focus - like pubs. that's right. there had been quite a lot of focus on - like pubs. that's right. there had been quite a lot of focus on this i been quite a lot of focus on this idea you might have to present some sort of proof of your status to go into pubs and that seemed in particular to attract opposition, not least of all from some conservative backbenchers, it almost became this kind of focus. you really have to prove your status to go and get a point in the pub and it's notable it's not part of these plans although as nick reported, they aren't ruling it out later down they aren't ruling it out later down the line. i suspect ministers will hold by leaving out hospitality venues and things like pubs, that might allay some concern expressed by s

the orion platform is the underlying foundation -- >> reporter: solarwinds' orion is one of the most ub iblthous software products you probably never heard of. but to thousands of i.t. departments worldwide it's indispensable. it's made up of millions of lines of computer code. 4,032 of them were clan destinly rewritten and distributed to customers in a routine update, opening up a secret back door to the 18,000 infected networks. microsoft has assigned 500 engineers to dig into the attack. one compared it to a rembrandt painting. the closer they looked, the more details emerged. >> when we analyzed everything that we saw at microsoft, we asked ourselves, how many engineers had probably worked on these attacks? and the answer we came to was, well, certainly more than 1,000. >> reporter: you guys are microsoft. how did microsoft miss this? >> i think that when you look at the sophistication of this attacker there's an asymmetric advantage for somebody playing offense. >> reporter: is it still going on? >> almost certainly these attacks are continuing. >> reporter: the world still might n

we checked in on a friday where we all readjust with evan brown of ubs at -- asset managers.ck to brown economics 101, you have to partition goods and services. you write that goods are strong but services will soak -- will show dispersion. discuss. evan: as we reopen, there are different paces of reopening across the world. the services sector in the u.s., that rebound is broadly priced at this point. what is becoming more priced is the european rebound. the vaccination pace is accelerating. we are going to get -- europe is a few months behind the u.s. but that is the big story. that is why the euro is going up and that is why we see european assets outperforming. tom: your colleague luke kawa, eccentric on the toronto maple leafs, how dare i, i misspoke. the news is out of canada where it is said employment formation is different than in america. are we creating jobs or we -- or are we still in replacement mode? evan: we are still in replacement of pandemic mode. most of the job gains are in that in person service sector. we have a long way to go, but it is moving pretty fa

tesla, ubs, and apple report this week. in europe, summer is on. ursula von der leyen tells the new york times american tourists will be able to visit the eu if they have been fully vaccinated. warm welcome to the program. it is just gone 7:00 in london. mark, what are the markets saying to you this week? mark: good morning. traders are preoccupied by the virus tragedy in india. from markets perspective, that is not the story today. it is a softer dollar and the strength in certain metals and agricultural prices. anna: plenty to focus on. just under an hour away from the start of the cash equities trade. let's have a look at where the futures are positioning. when it comes to the virus and india in particular, but in terms of the markets, worth remembering how strong things were during friday's session in the united states. european futures not really reflecting much of that. european equity markets fairly flat. u.s. equity market futures fairly mixed. nasdaq futures a little weaker. fairly flat. that is after we saw a 1.4 gain on the nasdaq. small

seth carpenter ubs chief u.s. economist your number tomorrow, your median estimate 5.8%. america at 11.5%. carl riccadonna at bloomberg looking for something close to 10%. we could have a very big number. tom: i mentioned it earlier. i looked at the asian number and the china number for lvmh. these numbers are stratospheric, up 83%. it seems we are getting what david beyond the talked about yesterday, there is a whisper up and the real whisper up, which is even higher. jonathan: the challenge in the near term is to try to work out whether these better numbers will show up on the balance sheet to show these companies where to go traditionally you might go to the banks, but when it comes to this morning, loan growth, loan demand. lisa: people have got more than $800 billion of direct payments in the united states. this is some of the map i was doing yesterday right that is how ice -- this is the math i was doing yesterday. people spend the stimulus checks pretty quickly. after that, then what? can they spent them on vacations and travel if there is friction of you cannot ge

they already have -- they will concentrate on wealth management like ubs.billionaires and trillion errors in asia in particular. -- and trillionaires in asia in particular. the problem is, everybody is going for the same business. what are your advantages over the competitors like ubs, voa, morgan stanley and goldman sachs? hsbc does not have a strong investment banking business. the trillion errors, billionaires -- trillionaires , billionaires, if you are not strong in doing deals in investment banking, it leaves you in a weak position and at a disadvantage. shery: we are hearing the china huarong will be delaying again. what message will this send to the markets? >> the case is the worst case of corruption in the finance industry ever since china's opening up. it is much worse than other previous corruption cases. something like a ¥1.7 trillion. right now, they have 500 million in u.s. dollars. they defaulted on it. extend the repayment. and then tried to figure out how to cough up. i think because it is so big they cannot just walk away. they will have t

ubs clearly outperforming, but even there, ubs' relative performance compared to the u.s. banks is tepid. how long can they sustain that? jonathan: credit suisse is down 19% year to date in a year where goldman sachs is up 27%. go back to that citi call in the last hour, different world, different execution. same climate, same price, and yet it is a different world for these two banks. tom: maybe apples and oranges and all that. i don't know what the apples to apples is on credit suisse. i just think there is a point where patience runs out. out of all of the reporting, what i really noted is credit suisse's relationship with the swiss elite community is really what is at focus here. that matters in zurich. jonathan: american airlines seeing second quarter total revenue down about 40% versus 2019. i think it is important to compare things to 2019 and not 2020 because 2020 was so bad. second quarter revenue down about 40% versus 2019, really underlining the fact that, yes, we will reopen. travel demand will be huge in the united states. the international story is going to l

ubs now baring all, but who might be next?als are doing right now and whether we'll see more head rolling to come. with the closing bell ringing in 25 minutes, we've got the 10-year yield just ticking higher by a bit, 1.61%. the s&p now up 3 points, how about that? that's a record. nasdaq, though, still down 42. stay tuned, charlie breaks it next. ♪ ♪ ♪♪ you can spend your life in boxing or any other business, but one day, you're gonna take a hit you didn't see coming. and it won't matter what hit you. what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ losing a tooth didn't stop you but your partial can act like a bacteria magnet, ♪♪ putting natural teeth at risk. new polident propartial helps purify your partial and strengthens and protects natural teeth. so, are you gonna lose another tooth? not

rosa prince, have you booked a ub to it. rosa prince, have you booked a pub table — to it.ce, have you booked a pub table or a jab _ to it. rosa prince, have you booked a pub table or a jab or— to it. rosa prince, have you booked a pub table or a jab or both? - to it. rosa prince, have you booked a pub table or a jab or both? not i a pub table or a 'ab or both? not et, but a pub table or a 'ab or both? not yet. but i _ a pub table or a jab or both? tint yet, but i think i should. i did not really teach you would be so long! there is a problem, on a serious note, for city centres. as lance said, if you live in a village with lots of space, that is great, and poor counsellors cooped up for so long will be... —— poor town dwellers. long will be... -- poor town dwellers-— long will be... -- poor town dwellers. . ,. dwellers. rosa prince, lance price, see ou dwellers. rosa prince, lance price, see you in — dwellers. rosa prince, lance price, see you in a — dwellers. rosa prince, lance price, see you in a bit- — dwellers. rosa prince, lance price, see you in a bit. that _ dweller

but so far so good, so you know-- it ended ubeing really wonderful. >> we're a small farm, which means that we can really put in a lot of thought into the quality of our produce, more so than--more so than grocery stores or a lot of other farms out there. >> you know, farming's not for the faint of heart. we're lucky that they're stepping up to take over our food system, those who are, because they just don't take no for an answer. they are mission driven people. and so ifhere arebstacles that come up, wellthose are just obstacl to overcome on the mission. so an example of that would be a young man in los angel, d'artagnan scorza. >> the military helped me build ielive the skills that were necessy to be effective. en i returned from the military, i recognized that i had the ability to create change in my own community. we have 25 fast food restaurants in a square mile right here on crenshaw and century, which is just three blocks from this high school. but very few supermarkets and throughout the city, and i think were seeing that trend around the country in multiple communities. >> an

larry we will keep talking about this i know that credit suisse ubs story has been going on a while icome back soon good to see you this morning. >> thanks. great to be with you -- >> thank you, senator ron johnson the other side of this break stay with us. you can spend your life in boxing or any other business, but one day, you're gonna take a hit you didn't see coming. and it won't matter what hit you. what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ as someone with hearing loss i know what a confusing and frustrating experience getting hearing aids can be. that's why i founded lively. affordable, high-quality hearing aids with all of the features you need, and none of the hassle. i use lively hearing aids and it's been wonderful. it's so light and so small but it's a fraction of the cost of the other devices. they cost thousands less. it's insanely

in premarket shares this morning, ubs stock is down 2 and-a-half percent. joining me now, university of akron investment fund chairman, dennis gartman. payne capital president ryan payne and rob luna. ryan, we are looking at a market that is edging higher, once again in record territory. a big day for earnings. big tech apple and microsoft will report their first quarter numbers today after the bell. we've also got other companies reporting today as well as this week like starbucks and visa later today. what are you expecting to see from big tech on earnings? >> well, i think they're going to destroy earnings and i think that that's been the theme so far this earnings season. 84% of companies have already beat earnings by an average of 30%. but i think the problem here is what we're going to see, maria, is tech fatigue and i think tesla is indicative of this, tesla blew away earnings yesterday. the revenue was up over 74% which is just mind-blowing. and they made $100 million selling bitcoin. i know dennis gartman loves bitcoin. that's another story all tog

i have not been to the ub toda today, david?day, david? i have not been to the pub today because i _ today, david? i have not been to the pub today because i was _ today, david? i have not been to the pub today because i was looking - pub today because i was looking forward — pub today because i was looking forward to appearing on the papers this evening and so, i've been on my very best _ this evening and so, i've been on my very best behaviour. not this evening and so, i've been on my very best behaviour.— this evening and so, i've been on my very best behaviour. not even a drop before going — very best behaviour. not even a drop before going on _ very best behaviour. not even a drop before going on air. _ very best behaviour. not even a drop before going on air. i _ very best behaviour. not even a drop before going on air. i had _ very best behaviour. not even a drop before going on air. i had a - very best behaviour. not even a drop before going on air. i had a very - before going on air. i had a very large glass of water he

the orion platform is the underlying foundation -- >> reporter: solarwinds' orion is one of the most ubobably never heard of. but to thousands of i.t. departments worldwide it's indispensable. it's made up of millions of lines of computer code. 4,032 of them were clan destinly rewritten and distributed to customers in a routine update, opening up a secret back door to the 18,000 infected networks. microsoft has assigned 500 engineers to dig into the attack. one compared it to a rembrandt painting. the closer they looked, the more details

scale and gravity of the disaster, i hope parking lot foreign secretary will step up today what law the ub will do help the indian people in their hour of need. i also join the prime minister in his remarks about ongoing injustice. but, of course, today is international workers memorial day. and this day, there year after all of the sacrifices from frontline work verse made during the pandemic it is even more poignant than usual i join in solidarity with morning loved ones today. mr. speaker, it is reported this week including in the "daily mail" bbc and itv backs up by numerous sources the end of october, the prime minister said he would rather have and i quote bodies piled high than implement another lockdown can the prime minister tell the house categorically yes or no did he make those remarks or remarks that effect? >> prime minister, no mr. speaker, and i think what -- i think the right honorable gentlemen is a lawyer i'm given to understand. i think that if he's geng to repeat allegations like that, he should come to the hogs and substantiate those allegations say where he heard the

dani: so they quit ubs, also leaving $60 million on deferred pay on the table.nes, it proved a little rich and they dropped him sco. from star baker to unemployed, he is now suing for $133 million. some ubs is being discussed although that banks german has made the position clear. >> we have a clear policy and it could be summarized into words. i wish him luck. dani: he may find luck on the others, he has been offered the top job at unicredit, but will he find his fortune in spanish court? in his own words, not a man to let go. anna: not a mental ago, dani burger on the path to union credit ceo job which starts today. let's get an update. laura: european union is still exporting rollback it has given to its population. that includes 40 million doses shipped to japan. they have now given around 100 million shots. the eu is still working towards its goal of vaccinating 70% of adults by the end of summer. >> the certificate should be ready with a final proposal by june. i think it is important for citizens to like they have this level of unpredictability. we can he

let's get some reaction from our guest, the ubs head of asia economics and chief china economist. what is your initial reaction to this? gdp coming in low but the other numbers pretty much gangbusters. >> we were expecting the first quarter number to be 19.5, and now it is a bit shy of 18.5. it looks like from the other activities, march industrial production was a bit weaker than expected, and that coincides with a few days ago, export numbers were a bit weaker than expected, but the good news is that retail sales, the consumption part which has been lagging in the rebound, has picked up 234 sent year on year. as -- picked up to 34% year on year. as rishaad mentioned, we are seeing a rebound in the chinese economy. haslinda: does that mean we are seeing junk market wages, which have shown improvement, pushing down now to spending? >> yes, exactly. our expectation is that this year, china's recovery will be led by domestic consumption and exports, and domestic consumption really needs to come from and improving labor market, improving household income growth, and improved confiden

ubs cut banking staff in asia last year, even as rivals like hsbc ramped up hiring.ys ubs is still asia's largest employer of clients and retains its top ranking in asia with $650 billion in assets under management. chinese regulators have imposed wide ranging restrictions on the fast-growing financial division of its tech giants. that includes many of the same -- used against jack ma's ant group. they were summoned to a meeting with regulars that spells out new requirements. joe biden says his proposed tax hikes on the wealthy will help finance cuts for many americans. it would amount to a tax cut for more than 2 million families in georgia, adding that it's about time the very wealthy start paying their fair share. five u.s. government agencies may have been hacked. homeland security has determined that -- may have allowed the bridge. cyber security experts are working with the departments that have not been identified. it comes shortly after russian hackers attacked nine u.s. agencies and at least 100 companies in the solar winds hack. that's the bloomberg busines

after holding court at ubs for years, those of you internationally wilmington trust is someone who managesoney. he does it with a philosophy of brown university, the sorbonne, and other academics. what's your philosophy on diversification? you have a pressure of people coming in who made it big with five or six holdings. what is your theory or philosophy of modern diversification? >> good morning. thank you for having me. i would start by looking at the observation that roughly one third of the perspective of the u.s. investor, domestic equity opportunities are in the private market and two thirds are in the public space. if you start from diversifying public market equities and private market opportunities. in many cases it's inversely correlated to public markets. the longer-term industrial holdings, of things. within a public market space, make sure we are diversified within u.s. equities across different factors and different sectors. we time some of those two considerations, but not too aggressively. you have that kind of diversification marks go up more than they go down and over tim

this comes from a note from ubs, my favorite word. stickiness. they are saying around 80% of iphone users have upgraded from an older model. so many of us have obsolete models. they expect that to continue with good service. because of its size, it is being a points driver. amazon, i know you are going to talk about it in the show. jeff bezos out with his letter. such a big story for the company about the way your group -- workers are treated. interesting to see it higher. chips, another big story. i want to look at some of the specific names. taiwan semi conductor, the biggest manufacturer. even though it is traded in taiwan, we have u.s. adr, down 2%. only one of two stocks down thursday. what they are saying is they expected the shortage of semi conductors to continue into 2022. they upgraded the sales forecast. a mixed message for investors. elsewhere, lots of strength. what was so interesting is raymond james, at the same time, downgraded. nvidia has muscled into the space. we love tension in the story. you can see the stocks higher. i want

. >> taking a look at the regional fallout, and also ubs, despite strong numbers, announcing its ownm archegos. absorbing a loss of over $7 million it, and is expected to see an $87 million hit in the second quarter. >> we are very disappointed at the situation. we are taking it very seriously, and we are reviewing the different relationships and reviewing the risk management processes to make sure that it does not happen again. >> where would you reduce leverage and reassess how you land? >> if you take the lessons learned often now, there are elements that we are picking up. the first one is the level of transparency and some of this business as well as the concentrated positions to leverage, so there is a combination of those. that is the big lesson learned here. it is not only that we should demand it and all bank should demand that, but also we should look at regulations to come in here in order to ensure that an event like this will not happen again. >> would you cut leverage to the hedge fund business and the investment bank? >> not necessarily. i do think you have to be very

a new note, ubs warns more than 80,000 stores could -- michael laser is the author of that report, aad line and hard line retail analyst. michael, thank you for joining us give me a perspective. 80,000 sounds like an awful lot. how different would it have been without a pandemic retailers have been right-sizing the fleets for some time. >> yeah, it's a good question, courtney our argument is that we have yet to really scratch the surface of the transformation of the retail landscape will see over the next few years. two reasons. one there's been a sharp shift to the consumption of goods, away from leisure activities as that rereverses on an opening, that will put pressure on retail irs. there wassing efforts to keep and support businesses as a result, those two factors are going to subside that's when we're going to start to see the store closures accelerate we think 80,000 is a baseline number it could be higher than that there are currently 880,000 retail stores in the u.s., so it would equate to about 10% of the total base. >> okay. that's not so shocking, about 10% of the total b

scandals is the hiring of the private investigation team to monitor a former executive who moved to ubsallout of that episode would cost the then ceo his job. now credit suisse acted as adviser to soft bank with the 900 million euro investment before the collapse. the bank took a $450 million impairment charge on the holding of york capital management frank, this is the latest in the string of issues for credit suisse right now, the question is what they have announced today is enough to set the bank on a better course moving forward and address the concerns that investors have. >> it is enough to fill up the wall behind you. not a good sign. question to you. how are investors looking in a broadway at european banks any spillover to other banks >> reporter: frank, there was concern when we were waiting for details around the fallout from archegos this morning, european banking sector rallying. we are seeing credit suisse under perform which suggests that investors view this as fairly idosyncratic. we are seeing the banking sector march higher on the back of the strong moves you saw on w

there are 73 asset managers on board like black rock, vanguard, ubs, with a combined $32 trillion. it is real money behind the climate problem. i recently sat down with wendy cromwell, heading these initiatives for wellington. i asked her how this informs portfolio decisions. >> when people hear that we are aligning portfolios with a net zero target by 2050, they automatically assume that we are going to be divesting from certain securities. we recognize that we can't just he carbon eyes are portfolios by selling out of securities because we wouldn't be insulating them from climate risks. instead, we would realize things come our risks in the portfolio spirit so we have to work with companies to set signs based targets and get them on the pathway to really do carbonized economy and society -- d carbonized -- de-carbonized the economy and society. if we saw a lot of the companies with omission footprints, than they are going to continue to exist. you would need all of the actors and capital markets to say we are not going to fund you anymore. and then their cost of capital would go

manus: i was drawn to paul donovan at ubs. a fantastic line. it is unwise to -- the u.s. consumer. i'm not saying anyone out there has had a hedonistic life in any way. what an encapsulation of the u.s. consumer -- how do play that? >> we are looking at the rotation into cyclicals. we have been saying don't bet against the u.s. consumer. even when the situation was tougher, a lot of the u.s. consumption data held up better than i expected. a lot of the stimulus to help that, a lot of cash saved up by households, we know on benefits and others were extremely generous and that was necessary. the u.s. consumer just continues to move forward. in that sense despite the fact yields are stabilizing, we think the reopening is not entirely played out and cyclical sectors should take the lead over the coming weeks and months. annmarie: he says hedonism, i say hedonism. we will talk more about that. esty dwek stays with us. your first word news. >> a group of the world's richest football clubs including man u and rail madrid have announced plans for a european breakaway league. it would be an

combined or standalone, is investors really love the wealth business for credit suisse, and especially ubsthe crown jewel of banking, if you will. this is perhaps another case where investors are, where you have a great quarter and the investment bank is still taking it away. tom: if you toss out the head of banking, the head of risk, how to the other divisions respond? alison: i think obviously, you expect to have headcount changes in something like this, but i think it really is clear that there is something more fundamental that needs to happen at the bank in terms of having a culture of risk, and that is really something that come gusting -- that thomas gottstein has been making 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 cultur

ubs out with a capital gains hike of the level could cut s&p 500 valuations by up to 7% any hike wouldmpact high growth stocks. technology stocks. keep in mind we learn from eamon javers yesterday technology stocks are the biggest money lobbyists in washington, d.c. we meththought it was around seo 230. we know another reason why they are throwing tens of millions at lobbying firms and folks in congress technology names could be hit hardest by any change in capital gains. >>> futures are slightly in the green. stocks end the week in asia mixed. japan is coming dudown they lost ground chinese markets were higher. in europe, all major averages are down, but not down by much >>> let's jump into it on this friday that is your top story the president's reported plan to raise capital gains taxes on those with incomes over $1 million. bertha coombs has more on the proposal and what we know and what we don't. bertha >> reporter: brian, the white house's apparent plan to raise taxes on millionaires is part of the plan to overall the u.s. economy. according to outlets, president biden will seek

that's how much ubs estimates will be spent on de-carbonizing the energy supply by 2050.ay. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. in the romo household we take things to the max oh yeah! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones! oh yeah! ♪ ♪ now i will stand ♪ ♪ in the rain ♪ ♪ on the corner ♪ ♪ i'll watch the people ♪ ♪ go shuffling downtown ♪ ♪ longer ♪ ♪ and then ♪ ♪ i'm turning around ♪ ♪ the clock on the wall ♪ ♪ moving slower ♪ >>> if you missed that chart, you would not be a fool in the rain if you bought the semiconductor stocks they have done well in the first quarter whi

this is something ubs has flagged.n the 1986 capital gains tax rate hike, we also saw momentum underperforms the broader market. again, these calls are really for a brief time of underperformance. eventually, the top 1% says taxes will go back in and buy some of what they sold. there's a lot we don't know about exactly what this policy will look like once it gets its way through all the washington machinery. this might be the plane at the moment but we have to see how this develops. as you point out, not a huge surprise conceptually that the democrats would want to bring taxes on investment into line more so with taxes on labor. that's partly what they are doing here. how has this played out so far? i referenced the selloff in stocks yesterday. dani: it isn't exactly going to plane at the moment. of course, it could later. momentum fell yesterday. if you were to choose between a momentum etf and and s&p 500 etf , you would actually be best served yesterday by holding momentum. we have not seen that selloff completely c

lisa:lisa: which is why jeff currie and his compatriots at goldman sachs ubs say there's a lot more roomo run for this commodity cycle. there's more discipline on some of the miner sides, as well as the shale and oil producers. jonathan: copper just a little bit softer over on the london metal exchange. coming up in the next hour, dan skelly, morgan stanley market research and strategy. julian emanuel calling today what could be the most important day for markets of the year. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. tonight, president biden will unveil a 1.8 trillion dollar plan to expand educational opportunities and childcare for families, paid for in part by the largest tax hikes on wealthy americans and dictates -- americans in decades. community college would be free, and the child tax credit would be extended. the top tax rate for individuals would go back to 39.6%. fed chair jerome powell is expected to maintain aggressive support for the economy. fed policymakers wrap up a two day meeting today. they are all but certain to hold interest rates near