ubs in total has 120,000 employees.he credit suisse portion of the bank since the force takeover has about 45,000. sources inside the bank tell us 35,000 of those jobs could go starting next month. let's take a quick look at what's going on in markets right now. we have had a rally that continues. ubs shares are rising. these of the u.s. adr's. they trade mainly in zurich. if you look at the broader market, the s&p has gone back in the rally mode. now up 1.1% at 4376. not at the big 4400 we topped last week but we snapped a two-day losing streak. nasdaq is claiming as tech stocks bring us back. fixed income, we do see investors selling bonds to some extent and yields rising pretty much no matter where you look across the curve. two-yeartwo-year there is the. -- there is the two-year. if you look at the 10-year, 376. let's bring in marilyn watson over at blackrock to talk about this market. it is still all about the fed really. it is still all about the debate. are they done raising rates? are they going to raise one mor

ubs is taking steps to avoid that.not just about shareholders, it is about talent, too but we have that ft report that they are considering delaying earnings. that will inject some uncertainty into the picture. >> ubs already indicated it will be later than usual. they usually do late july, this will be in august. because you are not just getting the combined companies' earnings, you are also getting the perimeter of what they will consider non-core, what ubs will wind down from credit suisse. that is the piece that will take longer for ubs to figure out, what do we want to keep, what do we want to sell off or wind down? that's the piece they have said they will give more color around at the second quarter earnings, that is what investors are curious about. dani: give the accountants and lawyers more time to figure out that headache. there is this other story from the wall street journal that big banks in the u.s. could face a 20% boost in capital requirements, why might that be? >> a lot of this was in motion before t

one line is in taking over credit suisse, ubs is taking over assets that are non-core to ubs and do not fit the business and risk profile in order for them, the authorities, that weekend to have been able to convince ubs to go forward with the deal, they must have offered a lot of assurances ubs said if they exceed a threshold, we want the government to step in and indemnify us this is what the agreement is about. >> one line from the swiss finance ministry this morning that part of the agreement is ubs maintains headquarters to be eligible losses are minimized and proceeds are maximized some detail around the terms of the agreement. in terms of share price, not a lot of movement. joumanna, this was well telegraphed this week as well as march. >> remember when we were talking about the issue in march, there was concern of the swiss public and the state taking on too much expose ure to the banks in forms of the credit line. the snb offered a credit line. there is a statement at the bottom of the finance ministry comment today. at the end of may, credit suisse paid full outstanding amount

sarah: ubs has reportedly completed the acquisition of credit suisse.t is the biggest merger in banking since the 2008 financial crisis. ubs agreed to take over credit suisse in march, and emergency sale brokered by the government after a confidence in prices and outflows put credit suisse on the verge of bankruptcy. u.s. agribusiness bunge is said to be near a deal to buy glencore's viterra. sources say a deal could be finalized by monday and bunge says that sort holders will hold a majority. it is an agricultural giant large enough to take on cargo and midland. crispin odey's main hedge fund will be run by his comanager, freddie neave, after the fresh assault allegations. meanwhile, the financial times says the eu funds managed by his firm discuss restrictions on investor withdrawals for the coming days. illumina has accepted the withdrawal of ceo francis desouza. desouza initially survived the attack when he was one of eight directors were last month. he was elected -- global news powered by more than 2700 journalists and analysts in over 120 countri

ubs has completed the acquisition of credit suisse. they say many top credit executives will leave and others will take on lesser roles. let's get more from allison williams. this has been a fraught few months for the industry and for these two banks. what do we know about the changes that will happen straightaway? >> i think we have seen some changes in management, for sure. i think the most important thing from here is to retain talent in the areas that ubs is looking to maximize so some areas are wealth management, obviously there is for sure different parts of asia that credit suisse brings to ubs and we have seen several banks aggressively wanting to go after that business so i think it is very important that ubs stabilizes things, especially within that unit. asset management is another unit but also on the investment banking side we have been seeing a lot of stories about certain bankers leaving and we expect ubs, with some of the top talent they are looking to keep, that there are some retention plans in place for those bankers

francine: will ubs be ready to absorb these finds it? russell: i think ubs is ready for this.ade the takeover it set aside for billion dollars worth of revisions for litigation costs. we know that credit suisse is facing -- the ubs is inheriting many cases that are ongoing with credit suisse and credit suisse has intended to appeal many of those. one of the interesting things about this could be whether ubs has the appetite to pursue those appeals and draw them out or whether wants to draw a line under them. certainly, there are litigation risks there. set aside the $4 billion and see if that is an accurate estimates. francine: russel ward there is in tokyo. we will have plenty more on ubs and credit suisse route the day. a quick look at what stocks are doing before we leave you for "bloomberg surveillance: early edition. we are 56 minutes into the trading session and it is the path of federal reserve interest rates increase uncertain that maybe makes traders vacillate between the rally and exhaustion. below plenty more on the market next. this is bloomberg. ♪' when i was his

shery: sunny lin, semiconductor analyst at ubs.ns with industry experts coming from the ubs future now apac conference. stay with us. this is bloomberg. ♪ haidi: oracles quarterly revenue topped estimates as sales increased 17% in the fiscal fourth-quarter. the result signaled the tech firm's cloud business is benefiting from increased demand for ai workloads pretty oracles cloud infrastructure revenue jumped 76%. cloud application sales jumped too. google is set to hit with a formal antitrust complaint from the eu that could pave the way for massive fines. the charge, which could be announced wednesday, would target the whole of the alphabet unit and tech -- ad business model. it accounts for 80% of annual revenue. shery: take a look at how softbank is trading. we are talking about the best day for the stock in about seven months, since november of last year. arm is in talks with investors including intel to anchor what would be one of the largest ipo's of the year according to people speaking to bloomberg. arm has held talks with

it feels like an iron grip by ubs on credit suisse. >> ubs has full access to the business and will takeh parts it's wants -- it wants to keep. we're expecting to involve potential job cuts as well. it's quite unclear how many jobs will be cut. if you think of the sizable overlap between the two banks, technically until yesterday they were crosstown rivals. at the same time ubs needs to try and retain their senior talent as well. alix: what does this mean for the broader banking sector as these behemoths come together? leonard: two implications really. one is for the wealth management industry. ubs was already massive before the deal and they will be the world's second-largest wealth manager after morgan stanley. in the second indication for the swiss economy have fewer financing options now. guy: how long will this process take? leonard: the ubs chairman said it will take up to four years so were looking at 2027 here. another crucial data will be the third quarter when ubs will make a decision on the domestic business. alix: -- guy: we will leave it there. thank you very much joining us

ubs was a conservative business.t suisse was more in the trading thing which led to the hiccups like rk goes -- like archegos. francine: what does it mean for morale for those that the bank? >> the second time now within a few days we have a top executive from the bank coming out with the boys saying we will cut -- with a voice saying we will cut staff. i get the feeling those messages are more for investors than for employees. that tells me the managers feel like the first thing they need to do is make sure investors understand what they are doing and ubs will stay the same and will state with a conservative business model. they don't care so much about the morale of the people themselves. this is something they can handle later. francine: how many jobs have they lost? >> that is the big question. massive cuts according to ermotti. ubs had about 17,000 employees and when a ceo says it is massive you assume half. we are talking about a couple thousand jobs. and 10% of the staff already left the bank in the last few m

ubs closing the deal on credit suisse the investment ban

lizzy, second-most top story here, ubs cutting half the credit suisse staff. >> three months after ubsook over credit suisse. it was going to happen at some point, wasn't it? we are seeing plans to cut more than half of credit suisse's staff. it's going to be traders and bankers who are bearing the brunt, as well as support staff. this is across london, new york, and asia. obviously, a difficult moment for the staff. dani: i go back to what ubs chair column said in may, that we are worried about cultural contamination. we will have an incredibly high bar for those we bring into ubs. it's now clear how high that bar is. they said they wanted to keep the top 20% of dealmakers, they wanted to keep private bankers. so many have already left. between the folks that are going to rivals and the cuts, it's going to be dominated by ubs, this new entity. lizzy: true. we also had second quarter results from jeffrey's financial group, revenue in investment banking clenched 26% -- banking plunged 26%. it looked likely but worse than expectations. it's a barometer of how wall street fared during tha

ubs writing in an open letter they expected this to come considering comments we have from ubs, also from credit suisse. dickie heard it was on wednesday. this was government providing $10 million to protect losses from this acquisition. let's go over here with what the future looks like. let's bring in our breaking news. it is completed according to this letter. what now? >> it was quiet surprise. i read it german. it would make no compromises. they also said they had no doubt. a lot of the issues came from risk-taking. the ft reported they have drawn a couple of redlines. it will be about whether they can extend certain loans. they are definitely trying to avoid this culture as ubs shares have reported. >> exactly. the red line, is that from today? class exactly. so it is about high-risk companies? compost financial products? how big of a shift is that? >> it is hard to say what will happen in the next weeks and months. there are reports they will be possibly thousands of job cuts. we will have more clarity on that in the next coming months. >> this is a for a few months. there are

what challenges does ubs face in integrating credit suisse? could say that they need to make the marriage mark after taking the vows. there are a lot of big challenges ahead. the main one is avoiding or dealing with duplication across all businesses worldwide and that is unfortunately going to involve thousands of job cuts and on the other hand you have the issue of trying to retain some staff in areas like wealth management. ubs wants to be a wealth management giant, with this merger they want to keep clients and their flows coming in, they have been draining away from credit suisse and that has led to this current crisis. that's another challenge. there is another challenge with what happens with the swiss bank entity, which will -- up until now was the main competitor with ubs. is there room for that entity to be under the ubs fold or if they will sell that down the road. these are the challenges and also more broadly the challenge of risk culture, credit suisse and ubs have different cultures and they are going to have to get them on the s

ubs is scheduled to show earnings by the end of july.had a couple of months according to accounting rules. they wanted to use the 60 day time to make sure they have everything sorted out. one is the issue over whether the government will incur any losses. they are wondering if the taxpayer may have to incur it. that is regarding the swiss banking. that is also usually confidential -- controversial issue in switzerland. they may actually delay reporting of the earnings to coincide with an announcement i want to do with that swiss unit. bearing in mind there is a lot at stake with jobs and branches. there are very sensitive issues that the bank needs to work through. there is one other practical issue. credit suisse and ubs have different counting systems. there are some practical issues there. you have to work through those as well. >> your bringing me back to different kinds of reporting. i don't envy the people at ubs who have to handle that one. make you so much, that is bloomberg's russell ward. nellis get to a bloomberg business flas

francine: what are you looking for some next chapter of the ubs credit suisse deal?sterday was meant to be the date of the deal closed between ubs and credit suisse. has been shunted back by a few weeks to complete it. that is the next big thing that needs to close. in the summary of ubs is set of results which will be as little -- absently fascinating how they present it and what it starts to due to their result. francine: thank you so much, tom metcalf who oversees all of our coverage for finance here in london. coming up, plenty more on the markets with a focus on chinese data. we look ahead to some of the jobs reports that we will get and whether it is as relevant as a used to be because of what we heard from the fed yesterday. this is bloomberg. ♪ francine: welcome back to the open. 50 minutes into the european trading day. we are seeing gains across the board. one of the biggest gainers is the dax index, .9% higher. there are concerns about ai and ai stocks or technology stocks to -- filtering through to europe but overall the focus is on better than expected o

financial advisor and managing director at ubs.ou can get a round up of all the stories in today's edition of daybreak on dayb . you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪ he snores like an angry rhino. you've never heard an angry rhino. baby i hear one every night... every night. okay. i'll work on that. the queen sleep number 360 c2 smart bed is now only $899. plus, free home delivery when you add an adjustable base. shop now only at sleep number. and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com haidi: taking a look at the top stories in the world, the leader of the wagner mercenary group on an agreement with putin. the agreement says that he will not be prosecuted. putin has thing to the army and security forces for their support in their meetings, saying they preve

creating this mega—bank in such a short turnaround time, effectively it was forced on ubs as part ofhat rescue deal agreed overjust one weekend in march, and now we'll see two cultures colliding. there are likely to be manyjob losses, staff will be bracing for those. however, as you say, the boss of ubs has said, look, we have a lot of opportunities here as well, and of course it does mean that ubs is able to access key markets in wealth management that it would have taken years to do had it not taken over credit suisse. and of course the deal reached with the swiss government effectively for the government to back around $10 billion of losses that it could see when it sells of chunks of credit suisse�*s business, will have helped sweeten this deal. it is going to have a fight on its hand but arguably, credit suisse�*s footprint does mean that that is probably going to be easier to at leastjoin the fight now that it has all of these assets under management and of course, has already established partnerships around the world. so certainly that will be the ambition. it's a big ambition

breaking news from ubs.t protection for the ubs-credit suisse merger covering 3% of the assets, they have sealed a temp -- a $10 billion loss prevention deal with the swiss government. i think that is the final hurdle for the merger to be completed. we will see how they carved it out. this seems to be the lost right -- the last regulatory hurdle. coming up, the eu has approved money for semiconductor research part of the push to increase the blocks domestic supply chain for chips. ♪ francine: welcome back to the open. 52 minutes into the trading day. we are seeing a robe or so. i feel there is a lot of versatility. the european union has approved 8 billion euros for semiconductor research. projects are also backed by private funding bringing the total to about 22 billion euros. let's get to our bloomberg tech reporter. >> this is a significant push. it has long been awaited by the block. this has been discussed quite a while in the european commission. it is also a question as to whether they will reach that

the memo internally signaling that the ubs deal will close on monday. call legal close. : this a bit of a moment for the broader finance industry. we know this deal is said to create a new european banking giant. he recognized there was still many questions remaining about how this will affect staff and credit suisse. >> you're right. this will really shape the global battle for the very lucrative business of wealth management. we have seen this in april finally going through. we are getting a few more details when it comes to how they will operate. ubs will be imposing strict restrictions on bankers including a ban on new clients from high risk countries. this according to the financial times includes two dozen red lines prohibiting credit suisse staff from a range of activities, a limitation meant to curb risks for ubs as this deal is being enclosed this week after was agreed in march it was going to pose a reshaping of the battle for this business of wealth management. really just creating a new mega bank. for now, let us get over to vonnie quinn wit

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ubs and credit suisse, bloomberg has learned that credit suisse -- ubs is going to cut more than halff credit suisse's workforce. su keenan has the story. talk to us about who might be affected and which geographies might be affected as part of the story. su: a 50% cut in bankers and support staff london, new york, and some parts of asia. we don't have the full details on which regions hit first but those three are expected to bear the brunt of the cut with almost all activities at risk according to sources. at the job cuts are to begin july with two more rounds in the fall tentatively september and october. three rounds total is what credit suisse's remaining staff of been told to expect. this is impacting those who remain in credit suisse trading and investment bank to be the hardest hit according to people close to the matter. all of this as a result of ubs's emergency takeover three months ago. while job cuts were expected, ubs has said from the onset, the full extent, more than half the credit suisse permitting staff is just becoming clear. ubs's combined workforce jumped to 120,

we kick off with the downgrade of apple from ubs.owth to slow in the second half of the year they talk about a premium valuation and in the long term they think growth outside u.s., china, europe will not be enough to drive growth above mid single digits joining us this morning is our own steve kovach coming off all-time high and a market cap of $3 trillion, at least in sight, steve. >> that's right. they keep inching closer and closer to 3 trillion despite this downgrade from buy to neutral from ubs, i'll use their word, they nudged their price target a little higher to $190 this sh is an issue we've talked about from apple, we hear from tim cook, demand is softening. they make a good point in the thesis they lay out saying, look, the most important markets for the iphone is still china, still the u.s. and still europe. while we heard tim cook last earnings call talk so much about the emerging markets, talk about india, that store opening in india we covered a couple months ago, it's just not enough growth there. the growth is on su

postcrisis, ubs really changed.ase of fixed income at credit suisse and ubs is very different. the risk tolerance is night and day. there are difficult decisions to be made about how combined businesses will operate moving forward. katie: let's talk about what he has been tasked to do with bs -- with ubs. he will integrate credit suisse's operations in the americas. when you think of that task versus what is happening in europe, how does that compare? sonali: it is interesting. people said what is left of the bank? the reality is quite a lot. they still had a big trade operation but it was messy. of the americas as well, part of this is the talents three cannot be denied. they are in the process of a lot of overlap. figuring out what they need to make this work for them. ubs in particular has a massive wealth management operation. there are financial wealth advisors across the u.s. and plenty for both banks. it is a large operation in the united states with a lot of arms about how they have -- of concerns about how

think about what it means for ubs. there will be a time of integration. lot of opportunity given the scale the business will have. wherever there is longer-term opportunity there tends to be shorter term challenges. sergio was talking about some of the challenges that lay ahead. they have laid out a comprehensive plan. what does that mean for the rest of the sector? the sector is a competitive industry. wealth management companies embedded in a lot of the banks that we covered. credit suisse was not an easy competitor prior to this. dani: hadan thank you so much for joining us. chris howland, head of european financials research at goldman sachs. china central bank has cut a short term policy rate using monetary stance to help aid economic recovery. the pboc lowered the purchase rate by 10 basis points. it is now 1.9 percent. this comes ahead of the pboc's --. seven of 16 economists expect a reduction in the one year mlf rate. jp morgan has agreed to pay to 90 million dollars to settle a lawsuit alleging it knowingly benefited from sex trafficking by form

ubs closing the deal on credit suisse the investment bank is taking things slow. >>> hitting all-time high. reports after the close today in what could be the cheapest a.i. play out there today >>> later on, more trouble out west as labor issues force one port to shutdown operations it is monday, june 12th, 2023. you are watching "worldwide exchange" here on cnbc >>> good morning welcome to "worldwide exchange." i'm frank holland. let's kickoff the half hour are the check of the stock futures green across the board nasdaq doing the best up over .50%. something to watch oracle trading at an all-time high moving higher in the pre-market. this is after the winning week which saw the s&p close higher for the fourth week in a row it also hit its highest level since august you are seeing the peak during the week strong week for the s&p. the nasdaq is coming off a big week up seven weeks straight. longest win streak since 2019. you see the strong upside move here with the nasdaq as well we are looking at the bond market as well the benchmark 10-year treasury 3.75 up 15 points from where it s

ubs was one earlier this week. bernstein has come through.eason they have decided to downgrade this to market perform from a performance, essentially the speed at which alphabet has moved into ai. it was seen as a little bit slower than its peers to move into ai, now there's a concern they have moved too far, too fast instead. because they have a lot of integration. they're working on integrating chatgpt, their equivalent, into their search results generally. bernstein's making the case that when you had that aggressive push from generative ai into search, that could also impact your bottom line in terms of search ad pricing. they are flagging a risk for this. let's take a look at what we see in terms of the consensus on the stock. the consensus shows the trend to the downside. we are now the lowest analyst consensus rating since 20 teams . so a five-year low -- 2018, so a five-year low for the company. >> we are seeing the frenzy continue in an alternative market. >> that's right. it's quite interesting. . the divergence you see from a name

ubs was given a lot of assurances so that should be ok right?k this is going to come as no surprise to ubs, they knew they were taking on not only the legacy of the archegos case but all the wealth of litigation that credit suisse is still embroiled in. in fact when they made this takeover they set aside for billion dollars worth of legal provisions and now analysts say they estimate the archegos related settlements will be much less than $1 billion. so this is in line with that put on top of that there are these other cases and they could stretch into the billions of dollars. there is a legal overhang there. >> one of the stories that got a lot of traction with our global audience is about citigroup's noble market strategist matt king. he has left the bank as part of cost-cutting. in many ways he represents the kind of losses in the global spectrum, or voices that are adjusting to a new reality. >> that is right. i think matt king is a high-profile example of a lot of the pain and cuts we are seeing from wall street banks and others around the

we go spc, ubs, ubs takes on credit suisse, and here we are. was this because of greed? revenue? we do not care what the quality of the revenue will be, we just need to get new revenue. is that what happened? >> i did not officially cover credit suisse, but i can comment on the european banks, which have willfully lagged the u.s. banks. some of this is that structural. after the global financial crisis -- some of this is cultural. i lived through it. it is growth at any price. there are some culturally flawed european organizations, several i worked at, that have played out through the numbers. goliath is waiting, and the goliaths are the u.s. banks. tom: can mr. dimon with a completely separate issue, this epstein scandal, be a change agent towards a more discerning choice of clients? >> know \ your customer i thinking 101 -- know your customer is banking 101. i have a compliance exam once a year, but there may be requirements on what clients you can take. lisa: you say goliaths are winning. are the smaller banks losing? >> yes. we conducted an analysis. we had 4 haircu

it is based on an integration plan to be developed by ubs. u.s.retary of state anthony lincoln is planning a visit to china in the coming weeks for talks with top officials, possibly including president xi jinping. he planned to visit beijing and fed. but scrap the trip after washington identified what it said was a chinese spy balloon crossing the u.s. the confederation of british industry has won the support of 93% of members who voted at a meeting to decide the cbi, as members support a reform program aimed at winning back trust following multiple allegations of sexual assault amongst staff. a loss of the vote could have led to the imminent collapse of the organization. boeing will delay deliveries of his dreamliner after uncovering defective parts. they say it may affect 90 already built jets and a few being assembled. regulators have not decided if they need to take any action for jets in service. the company expects to deliver 70-80 dreamliner's this year. tom: artificial intelligence has been central to the upside for these equities, and it

is ubs-led integration we're going to use our process, and i'm convinced that like we did at ubs, weestore confidence and proud of people to work for the combined organizations. >> there's been some concern about some of the talent fleeing, as you know, in the banking business, as they say the talent goes up and down the elevators and through the door every single day what do you have to do to keep those who may be anxious or on the fence about where this is all headed >> well, first of all, of course we are always sorry to see maybe talented people leaving. in other cases people were anticipating probably the inevitable restructuring that we will need to go through and decided to do. what we are explaining is our equity story and what it stands for, medium to long-term it's fair to say that many people, the vast majority do understand that we're going to be a better place to work, a better place to serve our clients, and, in fact, you saw that recently we were even able to attract talents from the outside after the announcement, which is a confirmation that's, you know, what we have

ubs is higher in the premarket. finally, this. a big weekend in golf.n. thanks to this wild 72-foot eagle putt. >> good pace. are you serious? oh, my goodness! glorious and free. cheryl: are you serious? that's what he said. but the moment may have been spoiled by an overzealous security guard, fellow pga tour golfer adam hadwin was tackled to the for walking on the green. a lot of people ran over to the security guard, said look, you tackled a pro golfer. so that kind of stopped the whole thing, maria. maria: oh, gosh. thank you, cheryl. cheryl: you bet. maria: wild. all right, former president trump reporting to a federal judge tomorrow in miami. he is facing 37 counts over his handling of classified documents. i spoke with harvard law professor emeritus alan dershowitz yesterday to get his reafntle watch. >> i think this is a much stronger indictment than the bragg indictment but it's the product of targeting and the question is, can you prosecute somebody when you targeted that person and went through every hoop, dotted every i, crossed every t, gav

charles: i have alli mccartney on a lot, ubs. we talk about what ubs likes right now. know consumer staples. defensive areas. >> yep. charles: they haven't been great for lack of a better term. these areas have been ignored. forget it, who needs 38% but at some point when does ubs branch out of this? when does ubs say okay we'll not have recession, let's get a little more aggressive for equity position? >> it's absolutely great question. we talk about it with our clients all the time. to be fair we talk about overweighting underweighting we're not saying good out of tech, hide in boring names, maybe reduce tech a little bit. add con tech a little bit, add consumer staples a little bit. still healing on to what has been laggard so far this year is the idea we all know we can't time the market f the market will continue to roar higher you don't want to sell out of stocks and be worried that you will miss out on that. charles: that's a good thing. your firm has said stay in the market. >> yeah. charles: listen, you're part of this rally that most of wall street has missed

one ubs share for every 12 shares they hold ubs is delaying the release of the second quarter results they are supposed to come out je july 25th. they may wait until august to coincide with the credit suisse completion. >>> frank. >> joumanna, thank you >>> turning back to wall street. 1.5% jump in the s&p on friday puts it on the verge of exiting the longest bear market run since 1948 that's according to dow jones industrial average market data the position within the market showing how fragile this year's the rally may be data from the cftc shows hedge hundred funds and other investors bet big on the s&p will fall it is the most bearish position for hedge funds and other investors since back in 2007 while the s&p is up 11.5% this year, it would be negative without the boost by big tech companies leaving the markets vulnerable to a pull back with shares of one or two companies start to decline for more on this, let's bring in lindsey bell lindsey, great to see you. >> great to be here. >> let's talk about it right now. the broader markets. what is your view on the broader markets? ar

and credit suisse, the removal— banks, ubs and credit suisse, the removal of— banks, ubs and creditlso reduces customer choice and will create _ reduces customer choice and will create redundancies in switzerland which _ create redundancies in switzerland which is _ create redundancies in switzerland which is quite a small economy. as which is quite a small economy. always, good which is quite a small economy. is always, good to which is quite a small economy. sis always, good to get your thoughts. with the latest on the future for ubs and credit suisse. let us take you to the developing story in the uk, questions are being asked about the future of thames water. it is saddled with £14 billion worth of debt and could be taken into public ownership. that is one option being considered by the government. the boss resigned with immediate effect. let us speak to an investor, lovely to have you with us. we should stress we do not have many details. this is a report suggesting it could be taken into government hands, what do we know about thames water and why it is so difficult for them t

ubs will manage both ubs and credit suisse as separate banks for the short term, but questions will remain there will be one us b-share for every 2 1/2 credit suisse shares. that will be of keen interest to look out for. done but clearly not completed. >> and in news from where you are, former uk prime minister boris johnson shocked great britain by abruptly resigning from his seat. what does that mean? >> that means there's an election in the area where he resides over. it's been four years since he held that position as prime minister when he led the tories. it was the best result. he left the job as prime minister in 2022. it follows the exact same scamscan dal he's dealing with right now, partygate. a host of parties an scandals that happened during that covid period, that two-year period. he steps down, he says, for now as the investigation continues, but it seems there's some sort of tenured note by the committee response fshl this report, meaning it has probably asked him to step down an perhaps him saying he's going to go before he's being pushed, but this saga is clearly not over.

, stock up two thirds of a percent on ubs. european markets, take a look, nasdaq hovering near 52 week high and european markets are higher, ft 100 up 2 points, cac quarante up 48, dax index higher by 118. and in asia overnight a mixed story. we see the shanghai composite and hang seng fractionally moving, big mover was half a percent higher on the nikkei in japan. meanwhile, president trump is headed to miami today to report to a federal judge tomorrow as he faces 37 counts over handling of classified documents. joining the conversation all morning long this morning, former new york state homeland security advisor, michael balboni and radio host chris markowski. "mornings with maria" is live right now. ♪ maria: and tech stocks continue to power forward, take a look at futures this morning and the nasdaq up one half of 1%, the nasdaq up 63 as we watch the futures market trade higher ahead of the federal reserve meeting kicking off tomorrow morning, the fed is expected to pause the rate hikes tomorrow at wednesday's policy meet

ubs sending heads of big cuts of credit suisse.g in a newspaper over the weekend what can we interpret from that? >> we get some of the message. that is something that sounds like we are wanting to make sure that the bank has been run in the same way before ubs that is winding down the risk of credit suisse and the demos like moving into another chapter of risky business, and then causing issues and paying for investors on the bonsai. so what we're hearing is he wants to kept on the credit suisse investment inc. and that's just so we don't know exactly how big that will be but when the ceo says he wants to get done i will put 50% or more in terms of the headcount so that what credit suisse is facing right now and it's probably not the end of the story right now. anna: so we wait to get the announcement of how drastic the cuts could be but on the culture side of things and the mistaking jv there seems to be something that certainly there's a lot of international interest about whether the culture, the ubs culture can consume the par

stuart: and ubs is up a fraction lauren: i'm not sure you care.hink that i convinced you but this is what's going on with the banks. some are getting bigger. stuart: right. okay. thanks, lauren. we've got to take a quick check of the big board. we're four minutes into the trading session. as you can see , the dow is up 85 points. you're very close to the 34,000 level, again on the dow industrials, some movement this morning. dow winners to start with, salesforce is at the top, walgreens boots alliance, intel is $31 a share on intel, ibm, all tech moving, visa is up .72% the s&p 500 winners whose in the lead there that be carnival and norwegian cruise lines got upgrades. there's renewed travel. lauren: that's how we're spending our money. by the way goldman sachs says the s&p 500 is going up another 5% to 4,500 at the end of the year. stuart: we'll take that one. nasdaq, what are the winners please, show me? we're advanced micro devices, biogen, marvel, tesla is on the list. look at that almost $250 a share biogen is up there, and so is analog devi

shareholders will receive one ubs share for every 12 shares held ubs is considering delaying the releasehe second quarter results due on july 25th the bank chiefs may delay until august to coincide with the plan for the domestic business of credit suisse. that is something we will watch closely. >>> and asos shares are higher after the 1 billion pound takeover offer from turkish retailer trendyol. this deal could em battle the retailer between 10 pounds per share. it lost 90% of the value over the last few years >> what satan extraordinary shae price up 11% this morning. >>> in the airline spice, iata doubled profits this year and now projecting $9 billion for 202. dan has been busy covering opec, but spoke to the director general at the group's agm in istanbu istanbul >> the difference this time around is we are seeing the industry on the path to financial recovery which clearly is positive given the very difficult period we just gone through. you will expect airline ceos to continue to reflect on where they are seeing demand and challenges on the supply side and strong emphasis on the

what's your take on the cutbacks at ubs? >> i think to your point that's a lot of redundancy getting cut out. credit suisse was not a great company. their investment bank lost like $5 billion two years ago in the debacle they had. there's a lot of -- heads are going to roll as they like to say. with regard to the banks in the u.s., i think the stress test will come in very good. we know the big banks are in great position. when we just saw the banking crisis, essentially we survived that very, very well with essentially all the big banks benefiting from the fact that deposits came their way. some of the smaller banks essentially had problems with money fleeing those banks. maria: we're still seeing a tightening in credit pretty much across the board. >> we are. here's the misconception. most debt right now is fixed. most american consumers locked in mortgage rates when they were really low during the pandemic. if you look, corporate debt, it's fixed as well. we're not as rate sensitive as we were when the financial crisis li

let's not forget ubs has a fair part of that on its own on its balance sheet.figure out now and have to figure out fast. investors don't like uncertainty. the benefit for ubs is it is a complex merger and we have to give them some time to figure out the details and all the stuff. but litigation is something they are going to address rather fast. you don't want to have those headlines. they are never good in any way. we want to assemble the regulators here really fast, make sure the market is bearable, which is in line with the story i have seen today. and then, you have this one topic off the rails. you can focus on the train going forward and focusing on the technical things of the merger. lisa: how is morale right now at the remaining credit suisse unit, at a time when it is been talked about the need for prudent public culture and basically saying there will be significant job cuts at the unit, at credit suisse, in an op-ed that he published in the past couple of days? jan-patrick: i have spoken to a couple of people. what they are telling me is not super di

ubs completing its acquisition of credit suisse.hair had to say. >> given where the authorities were at that point, it seems to me the government has done a very good job, not just for switzerland, but also for the global financial system. the question now is how does ubs position itself going forward given quite intense discussions around competition and size. david: he was speaking at one of our events there at bloomberg. how do you pick that as a bank. for employees within the bank, how does one cope? let's talk about this. olga yung from michael page is with us now. good morning. you are probably busy. what are you seeing? >> we are catching up with a lot of credit suisse employees. the general sentiment is pretty gloomy. a lot of them not sure what is going to happen. a lot of them speculate, especially for those with five years or less experience, may not be retained. we have confirmation from senior employees that they will be transferring over to ubs, which is positive news. overall if you speak to anybody with an credit sui

of tech news for today google gets another downgrade from bernstein today following downgrade from ubsesterday as competition in the ai race heats up here to break it down for us is our very own tech correspondent steve kovach and cnbc contributor and founder of big technology, alex alex, start with you here. as we talk about this downgrade of egoogle parent, alphabet, i don't know it used to be we were used to google being the overlord and microsoft the underdog valuation wise, microsoft is looking a lot stronger. >> absolutely. and i think, you know, the downgrade wasn't this massive downgrade. they're still expecting 11% growth with the new price target from ubs not like they're killing the stock. but what they are saying is microsoft is pushing this company to be defensive and those defensive moves could lead to revenue slowdown for google for instance, you take generative search, so you now have the first 75% of the window that's all content that google shows you and the ads below. and that could ding the revenue. remember, search revenue for google was up only 2% in the first qua

ubs says injuries related to the court could increase health care costs.cans will spend 250 and $500 million on health care expenses related to pickle ball this year. i didn't realize pickle ball was so dangerous. anyway, the countdown closer has his pick for the stock for people going to the doctor, playing too much pickle ball. joining me, max wasserman, founder, senior portfolio manager at miramar capital. i set you up, max what do you say? >> i appreciate that. thank you. i don't know how dangerous pickle ball is but i want to take it up myself. we have medtronics we have investment in, that does medical procedures. you're starting to see a global rebound in medical procedures given the fact hospitals are opening up again, supply chains are starting to get a little bit better, inflation costs higher but at least under control. medtronics, for example, is one of the largest medical supply companies, device companies out there. trading 15 times earnings, 3.1% dividend yield. with average five-year pe of like 18. so the company about a year ago was tradin

lisa: ubs intends to ultimately reduce the total combined headcount by about 30% or 35,000 people.his is a lot of people, a lot of jobs. do we have a sense of where we are in terms of who has stayed, how much of the talent they have lost during a process that has been absolutely scathing in some of the commentary? >> it's hard to get into the details about what the talent is like on the ground floor, on the front line, who is like the big talent they have. we know some managers that have left but that is normal in takeover. the perspective from ubs, they look at the merger and think about what do we want to keep and then we cut the rest. what they want to keep is some key people in the wealth management who have unique line basis that add to the pool of clients at ubs. they want to keep key talent in dealmaking where they have guests and something like that but they don't keep everything in the back office, everything that has to do with stuff that can be scaled. you don't need another 100 traders to train bonds and stocks -- trade bonds and stocks. all these easy replaceable doubl

ubs which took over credit suisse has inherited its former rivals entire litigation portfolio.di: let's take a look at fx. that weakness has been a heavy focus. we are continue to watch about today. the aussie dollar the little upside at 6792. the dollar extending those three day gains. we are seeing a bit more of a resilience pitcher when it comes to trading in the yen. this months rate hike was finally balanced. also watching dollar china. we have seen a marginal improvement given these expectations from antony blinken's visit to china gave that came out better than expectations. still ahead, australians are taken a more positive view of china. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. s

. >>> our call of the day, ubs downgrading apple from a neutral to a buy, softer iphone and services growth. the change comes one day after the tech giant closed at an all-time high. ubs did increase its price target by $10 to $190, that's 4% upside from here they make the point, i thought that was interesting, price appreciation plus dividend is a 5% return. and that's not good enough to be buy rated here what do you think? >> that makes sense to me. >> it does >> remarkably rational >> and i'm sure it's some 190s if it goes to 190s, it will work out better than that you have to pound the table here you know, this multiple is rich, they deserve it, they're a premium company, but hard to pound the table here i am long. >> guy >> valuation's a concern i mean, people look past it and it's definitely been a flight to the perceived quality of apple in the light of what's going on, but now, other stocks seem to be getting on their horse maybe there's rotation out i admire the call, because instead of doing this it lows, they are obviously doing it at the highs. good for them. 190 price ta

ubs down grades apple saying it sees weaker demand ahead for iphones. >> jim, i know you love to look at internals thank you, energy, down 3.6. used cars up 4.4. >> used cars is not up to date the last few weeks used cars, the margin between used cars -- msrp is down, by the way, for new, has gapped. used cars have plummeted, maybe 5% which is not captured by this that's okay. you're looking forward that's a category that is a win for the fed. all i can say, david, i don't know if you've seen some of the notes on student loans maybe people just won't be able to go anywhere and won't bid up housing. right now toll brothers a million dollars. by the way, it can go to 1.1. >> there is an expectation that rents are going to start a fairly significant decline >> i know but where is it coming from >> what do you mean when you say that, where is it coming from? >> we have whole regions of the country where there are bidding wars for rents the cleveland region >> yes, cleveland. >> one of the oddest region in the country. >> apparently millennials are moving to cleveland. >> because it's chea

the ubs report pointed out they're spending more on labor but that's mostly wages.people prevent shrink, and i think that's a big issue i think the other piece which i do think is interesting are the efforts that the sellers of merchandise that's being taken by organized crime are making to prevent and curtail that they mentioned the inform act, which is requiring marketplaces to get better traceability on third-party sellers. and i think amazon in particular is doing a lot of work on this front to try and limit the ability of stolen merchandise to be resold in the retail system so i think that's an important step but i'm with a client today that's in a fairly high shrink category in the stores, and i think they found the idea that i was going to be on talking about how shrink was getting better to be not quite accurate. given their experience >> do you want to elaborate the a at all on that it's highly debated in new york as well where there are efforts by -- retailers want more technology and more systems to try to help this problem and now they say they're not ge

. >>> coming up, ubs boosting its meta target saying the firm will likely get a boost when it integrates generative a.i. into the meta verse a power check as we lead to break. carnival only down 9.5% after announcing strong cruise demands. analysts want to know when profits will return. boston properties the real estate investment firm up nearly 8% best day since 2020 along with the rest of the space. sl green popping we'll have more on that later. "power lunch" will be right back what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create. (vo) this is sadie, she's on verizon. the network she can count on. what will you create? and now