At the same time, we generated more capital through earnings. Thats why are ratio is 12. 5 . Talk to me about the merging of the two units. What is the reasoning behind that . The Investment Bank merger is something weve been discussing for months. Even my predecessor, it was already a topic. 2015, clearlyn the two had to be separated. We had to restructure the trading business. Are at a stage or we can put them back together again. Most of our competitors have it anyway. This is not a cost exercise. There will be some cost benefits. Its really about having one overriding business to have one Investment Bank globally, one equities business. A Global Trading solution business, which build on our success. It serves our equity, fixed income, transactional business for the private bank and institutional business. How difficult was it to do this in the middle of the pandemic . Thomas it was relatively good. You get used to resume calls. Zoom calls. We had many internal calls to get this lined up. It actually worked very well. Personto say, not one within Credit Suisse was against that combination. Is stepping down from the board. He was as convinced that we should do this. It was not a move where we had to convince a lot of people. Matt doesnt mean you will see a more streamlined credits we Credit Suisse . Thomas no. We believe in the original model. It makes total sense. We want to keep the regionalization. What is your biggest concern over the next 12 months . We seem to have gotten over the worst with the pandemic, more or less. Kong, up to 65 in the office. Now we are back below 20. The biggest concern is a second wave of infections. We are doing well in switzerland. We are almost back to 50 working at the office. Thats the biggest concern. How many people do you have working from home . When do you expect that to change . Thomas globally, 20 working in the office. 80 can from home. We have 90 enabled to work from home. Up in mosts going countries, in terms of people working at the office. As i said, there are certain wheres like hong kong youve gone the other way. Do you spect any permanent changes . What does it mean for the real estate you own around the world . Thomas in the midto longterm, i expect that we will have more people working from home. One day per week or two days per week. I still think its very important that you have informal exchange. Therefore, coming back to the office is something everybody wants. Everybody was so happy when they could come back here. It is something that people want to do. Annemarie that was the Credit Suisse ceo speaking to bloomberg. Lets get more from francine lacqua. Its great to see you back out in the field. Tell us about the Credit Suisse restructuring plan. New tv sector related out. Its hard to bank on the strength of the Investment Bank. Its putting together compliance and risk. He says this doesnt have anything to do with the risks we saw in asian markets. Overall, theyve had a good quarter. This is news for the executive. Hes been in charge for six months. Its interesting he decided to do it in the pandemic. He said most of the people were behind it. [inaudible] in terms of how it was received by share price, we dont have much market movement. They been outperforming some of their peers. Matt weve been talking to bank ceos about their plans to return staffed office. What does he say about Credit Suisse . You heard him say that for the moment, 90 of employees can work from home. Only 80 are. That practices will be much more flexible so people can take one or two days working from home. The under their other interesting part was dividends. He told me there was an egm that was approved. Hes expecting the dividend to be paid out after that. Thanks for joining us. We have shell and tou thao earnings hitting the wire now. A massive surprise in terms of profit for both of these companies. Profitsecondquarter came in at 38 million. The market was expecting a loss. 126 million. They were expecting a net loss of 443 million. All of this, these Oil Companies can thank their trading units. Their trading units handled more than 25 Million Barrels of crude oil a day. Thats equal to more than a quarter of global consumption. There were deep trades. Paid offed off handsomely for these companies. Matt fascinating stuff. A lot of earnings beats today. Major oils and the big beats at Credit Suisse. Every single line, the bank beats on. Everything for which bloomberg had estimates, you can say the bank did better than the street was looking for. Cases, in terms of bottomline earnings in topline revenues, they did better than the consensus and the highest estimate we had from the analyst community. To ceos ofspeaking many of these companies with earnings out today. Euronext is up. We will speak to the ceo of anglo american. As well as astrazeneca expecting their earnings soon as well. Keep on the european open for the top ceos from the Top Companies on the continent. Up next, whatever it takes. The fed valves to use all of its tools to support the u. S. Economic recovery from the coronavirus. We will look into Jerome Powells comments, next. This is bloomberg. Matt welcome back. This is the european open. We are 50 minutes away, 40 nine minutes away from the start of cash trade this morning. Futures are pointing higher as we continue to get earnings beats out of the Biggest Companies in europe. Lets get to the first word news. For that, we go to war right in london. Laura during congressional testimony yesterday, Facebooks Mark Zuckerberg broke ranks. It was part of an antitrust hearing. He says facebook lags behind its competitors, calling out google and amazon. Lawmakers grilled them, arguing they have too much power over digital markets. The u. S. Death toll from the coronavirus has top 150,000, the highest tally in the world. Florida, and california have reported daily record fatalities. Warns eyeuci protection may be needed. He says if you have goggles rate they shield, you should use it. U. S. Announced plans to withdraw 12,000 troops from germany. Some will be redeployed. The defense secretary says the move is to bolster nato and determine russia from interfering in europe. Donald trump has signaled the move is largely about punishing germany. He has long complained about German Defense spending. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Annemarie thank you so much. Jerome powell has kept his message as dovish as possible. The fed left rates near zero. He says signs of the coronavirus resurgence are starting to weigh on activity. He urged congress to boost fiscal spending to offset the biggest shock to the u. S. Economy in living memory. We remain committed to using our tools to do what we can and for as long as it takes to provide some relief and stability, to ensure that the recovery will be as strong as also both, and to limit lasting damage to the economy. The path of the economy will depend, to a high extent, on the course of the virus, the measures that we take to keep it in check. The data is pointing to a slow rate in the pace of the recovery. How largeearly to say that is and how sustained it will be. The rising joblessness has been especially severe for lower wage workers, women, and africanamericans. The fiscal policy actions that have been taken thus far have made a difference to families, businesses, and communities across the country. It will take continued support from monetary and fiscal policy to achieve that. The Federal Reserve has been taking broad actions to more directly support the flow of credit in the economy for households, businesses large and small, and local governments. These are lending powers, not spending powers. Theres great uncertainty around the development of therapeutics and vaccines. All of us want them to happen as soon as possible. We cant plan on that. We have to hope for the worst hope for the best and plan for the worst, i guess it goes. Annemarie that was Jerome Powell. Is timothy graph. They mention fiscal support a number of times. Are you optimistic we will get a deal out of them . Timothy good morning. I suspect so. The usual horsetrading. This is an election year. No one will want to get the blame for holding up stimulus. This is similar to 2008. You had a lot of uncertainty that programs would actually get off the ground. Eventually, they did. This is an even more critical package of programs. This is actually aimed at the u. S. Consumer as opposed to a banking system. It is in no ones incentive to hold this up. The particulars will be worked out. Thats where this in uncertainty will come. There will be stimulus, im pretty sure that. Matt in terms of what Jerome Powells job is, is he done . No more qe from the fed. No more extraordinary monetary tools. Just hold and wait for the federal government to dish out trillions . Timothy i suspect it will be a situation with new wrinkles on policy as opposed to massive innovation. So moving to the average inflation targeting framework, it seems likely at the september meeting. That is probably now in the price. It is something they will move towards. ,t gives them that flexibility to not have to feel pressured to change course if you do get inflation moving higher a little faster than anticipated. Whether qe is likely to expand in the future, im not certain. I suspect their focus on it may diminish. Thats my own personal opinion. If you get a significant downturn as a consequence of ande spiking virus numbers the labor markets stalling out, you might get modest increases. Thats more of a new wrinkle as opposed to an innovation. I would not say the focus is completely dead. You will not get somebody to move the dial quite a lot. Annemarie you are talking about an inflation target for september. The former fed president of minneapolis argues that the fed wants to have maximum impact, they should be targeting unemployment. We will see some of the devastation today when we get those u. S. Jobless claims. What is a better measure for the fed to target . Timothy of course, they are both targets of the fed. At this stage. T i would question that slightly insofar as its very difficult, beyond what theyve already done, in terms of providing support for the Corporate Market and reducing Corporate Funding costs to allow corporate stop rate in a highly uncertain environment. Corporate as on well as fiscal authorities, i suspect. That can be more effective in tackling unemployment targets. I dont think its necessarily easier to do one versus the other, inflation versus unemployment. At this stage, is it in the fed interest to act as the arbiter for the labor market in the u. S. , beyond providing that support . I dont think it is. I dont know if they would view aat as their mandate, absent formal change by an act of congress. I suspect its easier for fiscal authorities and regulatory authorities to move in that direction than it is for the fed. Matt what do you think about gold at 1960 . Does that make sense to you . Will we see weaker dollar, stronger gold . The Printing Presses roaring along. Real Interest Rates way down below zero. For the we do expect it mediumterm, perhaps im not a huge dollar bear. Im not one of the ones looking for a 30 dollar crash. I think we are in a healthy correction mode. The dollar has been expensive for a long time. It had been a consensus loan for long time. Inflation expectations are only just beginning to recover. With that in mind and the fed policy in mind, it looks as though real Interest Rates have started to fall. That will be to the detriment of the dollar and the benefit of gold. Variables are going to change. We will get some recovery at some point. Inflation expectations will continue to rise, i suspect. Especially if they adopt average , the fed willcy do nothing and stand and let that happen. That continues to add to pressures on the dollar. Matt you will stay with us. Head ofh tim graph, the microstrategy at amia. I want to quickly give you astrazeneca earnings that are coming along. Most important, it is keeping its guidance. To drugmaker will continue aim for its fullyear guidance it previously had. In terms of the backward looking earnings report, there were beats on the bottom line. For 93lysts estimate was cents. Revenue was in line. They gave a number of beats or in terms of individual drugs. Farsi to revenue was better than expected. Symbicort revenue, better than expected. We have to do a package on these drug names. Who was the guy or woman who comes up with that name . What does that even mean . Beating on every single drug, beat him on the bottom line. 6. 2 8 billion. Its the busiest day in european corporate earnings. Firms worth more than 2 trillion are reporting today. We will look into the latest results and what they mean for the economy. We will speak to the ceos of a number of those companies. All of them joining us after 8 00 london time. Stay with us here on the European Market open. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. Futures higher in london and paris. Down a little bit in frankfurt as we get a slew of earnings. The most on the corporate calendar. Still with us is state street head of microstrategy. We are seeing a lot of beats. Clearly, its not been a great quarter economically. We are looking at the biggest dip ever for the u. S. Economy, at least recorded. For the european economy, also bad. How do you think these companies are dealing, considering the economic backdrop . Timothy they are probably as clueless about the outlook as we are. It was going to be taken for granted that q3 would not necessarily be a vshaped recovery, but we would take some path along the road towards recovery. And we will. Countries and states in the u. S. Reentering lockdown and case numbers continuing to rise, you are getting an increasing sense that things that things are not under control. The questions will be the more important ones to answer rather than the q2 data, which is backward looking. Everybody knows it will be varying degrees of terrible. Wasreal problem is q3 supposed to be something of a recovery quarter. Again, you probably will get recovery simply because large economies like the u. S. Will not be in as sharp a lockdown. The size of that could be questioned a bit more. If you are a corporate official looking over the rest of the year, your outlook has to have been far more uncertain today than it was six weeks ago. Optimistic are you europe can escape more economic damage from a second wave . Many say europe will recover faster than the united states. Do you agree with that assessment . Timothy the depths of the slowdown will be more shallow. There are more automatic stabilizers in the eurozone economy. Whether or not it will attain its precovid level of output faster than the u. S. , i dont know. I suspect it might, sibley because of the depths of the slowdown was more shallow. The u. S. Is a more dynamic economy. Things move faster. Dropresult, the larger the , the harder it may be to attain a crisis level. I dont really know. Europe is in a good position, a better position politically. Given its a more shallow drop, it may be. Annemarie we will have to leave it there. Thanks for joining us. Speak to the ceo of euronext. This is bloomberg. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Annmarie welcome back to the european open. European futures looking brighter this morning. A slew of earnings out today. The busiest day so far this year for corporate earnings. Euronext reported earnings that beat estimates. They benefited from a surgeon volatility and volumes during the pandemic. The stock is up 30 year to date. Joining us now for an exclusive interview is the ceo, stephane boujnah. Thank you for joining us and good morning. I want to start with the shorter trading hours. Many say this could lead to more diversity. Isnt it high time to start making changes that would lead to any diversity in this very largely dominated male profession . Stephane there is no debate about the need to boost and favor diversity within our industry. Clearly, no debate on that objective. The only answer we have provided to the market is that following consultation with all the stakeholders, traders, the Retail Investment community, there were just completely mixed views on whether or not trading hours should be shortened. In order to avoid fragmentation of the market, in order to address the lack of consensus, we have decided to go with the status quo. But you are right. Placeebate must take within the industry about the diversity issue. I dont think shortening trading hours is a onesizefitsall solution. I believe that across europe there are very different situations. Issome countries, there heavy reliability on daycare. You can find some on the continent more female managers than in london. The situation is much more differentiated and i dont think that trading hours was the only way to address the issue. As i said to one of your colleagues yesterday, firms have invested in a lot of money for gyms the past 10 years. Maybe they can invest a little bit in daycare. Matt you know, we see study after study showing more women on boards means more profitable companies. Moodys having the benefit of the doubt to companies that have more diversity. It seems like it is in the best interest of your shareholders to divers