Firm has no intention of tlashing outtlash thrashing out a takeover deal. Theres nothing to negotiation. Unilever too sales rebound despite emerging markets. The ceo is planning on another year of growth. Overall results 2. 9 underlying growth. This is the 7th year in a row that we have top and bottom line growth. Strong internals as well. And welcome everyone to the show. A number of earnings out of switzerland to cover. First, Credit Suisse beat expectations in the Second Quarter with profit of over 1 billion swiss francs. Earnings continue to suggest weakness in the Investment Bank. Lets get more with carolyn froms urich. As you said numbers were better than expected but the credit doesnt go out to him. Hes only been on the job for a couple of weeks. Yes he might have been very well prepared for that job but were talking about the Second Quarter here and that credit obviously still goes out to the outgoing ceo and im a little surprised to see that the Second Quarter shaped up better than expected because remember the Second Quarter seasonally is never as strong as the First Quarter and second of all we did have more macro concerns and difficult trading environment and that was also reflecting in the u. S. Banking earnings season. So against that backdrop numbers from Credit Suisse were pretty strong and net new asset flows of 14. 2 billion swiss francs and finally i want to talk about capital. That will be key Going Forward. Thats a little bit better than expected but in comparison to the rest of the industry thats still pretty low. You have a print of 13. 7 for ubs for example. So thats certainly where Credit Suisse needs to do some work. The new ceo is very much aware of that and theres been much speculation as we know about what the big master plan will be. It wasnt unveiled today. It will be unveiled sometime later this year october, november, or december but i wanted to know whether he could give us some clues about his vision. I am running a very very consult consultative process. We really engage a number of work streams. Those on the team are each accountable and actually volunteer which is something i always try to achieve because for strategy to be well executed people have to be in and it is my vision and something we will collectively develop and believe in. So capital is yes very important. After capital intensive. Absolutely. Its better to be in capitallike businesses. Theyre less volatile and on higher multiples and in the end we want to drive the company up. Its a very attracting investment story today. We want to rebalance the wish for Private Banking and we said that we want to increase the activities as opposed to the Investment Bank but we need to look at the asian model we have of one bank where private bank and Investment BankWork Together and we have good results. Its providing customer with value and creating value for our customers. Will a capital hike be part of that plan . I cannot answer that question today. I want a Business Model thats capital interactive because i know its stating the obvious but its so important in business. Now there are issues that we need to address. Famous nonstrategic unit has been a drag on our results and that will take some capital and there are restructuring costs as chief of strategy and we need to look at that but fundamentally im a great believer in selfhelp. Selfhelp is made of cost cutting disposals and these are things we need to look at. Then we need to get our needs for growth and that equation will determine where we need to call for Additional Capital but i think i have a track record of generating capital and any capital theyll get back many times. Im sure you read yesterday there was a report about you signing out big investors. About potentially bulking up in Asset Management. Can you confirm that . Some of the down side of the method i have adopted which is to consult and go at a considerate pace is that there will be speculation. There will be speculation and its not helpful for me at this point in time to start confirming or denying as people speculate. People will speculate but we know what we want to achieve and we are focused on going on with the right answer. Credit suisse up 4. 9 in todays trade. Roche confirmed its outlook after a first half sales. Its striking an optimistic tone on its ability to stay ahead of the competition with new Cancer Research into alzheimers drugs. Its taking a toll on abb. They reported an 8 fall in profits in the Second Quarter due to a slow down in demand and shares as you can see right here up by around 3. 3 . Meanwhile, take a look at syngenta. It posted sales of 7. 6 billion in the first half. Roughly in line with expectations. We caught one the ceo of the firm and asked why they wouldnt discuss opening books to u. S. Rival. We gave a clear example that theres no negotiating table to sit down to. It failed at every level in order for us to go further. So no i dont think negotiation is the step right now because theres nothing to negotiate. Lets get out to carolyn for more on the syngenta story. What we see in the shares this morning is were down roughly 1 in syngenta. Numbers were better than expected. Net profit of 1. 22 billion. That was better than what analysts anticipated but whats happening today is profit take because shares in syngenta had a phenomenal rally since we heard they might be making a bid and then a rally when we saw the two bids coming through so syn gerks nta was trading at aan all time high. Some investors taking profits but also a little disappointment that syngenta isnt budging. This isnt a viable proposal on the table right now. They said repeatedly about how the offer undervalues our prospects, specifically in emerging markets and they say were in a soft spot and theyre obviously afraid of the regulatory hurdles. They think that this is not going to get clearance from the regulators. Its worth noting that were just getting some comments from the head of monsanto. He made a serious proposal that would provide shareholders will premium and further potential. He says the syngenta results confirms the swiss firm does not have a longterm vision or plan that would create the same value as a monsanto tie up and its saying its clear from extensive outreach to share owners shareholders, that there is broad support for a strategic rational. This is the direct response this morning. So the war of words is continuing. The question is whether monsanto makes a better offer but its also about the security for regulatory clearance. Their investors are supportive of the strategy. I was just going to say its a story that continues to get more interesting. Monsanto is not backing down. They have broad support for the strategic rational. Well come back to you with more. In the meantime lets get the war on earnings. Richard joining us in studio. What do you make of earnings season so far . Its mixed. Thats telling you something about the u. S. Economy. Its growing nicely put were probably past the peak point in margins. Employment costs are picking up so its very much now the bottom line, the volume line which is coming through to earnings. Its not the Margin Expansion that was enhancing earnings earlier in the cycle and at the same time there are head winds and currency effects and things coming through. We see it impacting the euro zone. Its picking up momentum at the moment. They pulled back the results of the crisis in greece. What you need to look at is what people expected at the start of this year which is about 1 growth and what theyre predicting now and the strength is taking people by surprise. But you would say its the stronger dollar and as well as Lower Oil Prices . Theres currency effects in there. You need to look through those pause they can come through negatively one quarter one year and then positively in the next period and you really need to look at the under lying picture but there are currency effects in there. You just need to be warware of those. A lot is being driven by better than expected data as well as m a. Thats right. Look at health care and technology and banking but what youre seeing now is much more stock specific effects. Some are doing well and some are finding the environment more difficult so its peculiaring a more stock oriented market for awhile. Apple a great example of that. We saw the cascading effect around the world. Asian suppliers and chip suppliers in the u. K. Acting negatively. Of course. Apples earnings were not that bad at all. Just a little bit of concern about the future sales growth i think. Stick with us. Lets take a look at how markets are trading on this thursday. Yesterday we did see european stocks close to the down side. A lot of that having to do with disappointing earnings from apple and the fall out from a lot of the companies in the tech sector plus the commodity sell off impacting the energy and you till till sector. One of the reasons we saw the ftse 100 as the key underperformer. Plus mpc Meeting Minutes suggesting a rate rise discussion is picking up momentum. Here on thursday though after yesterdays move to the downside were higher across the board. Xetra dax up about 15 points. French markets trading at 5,090 and seeing a gain in the italian markets. One of the out performers with a gain of 62 points. Bonds got a bid yesterday after it kept investors in risk off mode but minor moves in terms of yield. 2. 3 or 2. 2 as it was earlier this week. The bond at 0. 74 . What about currencies . Thats a big part of the discussion. Yesterday the story was the stronger dollar on the back of the better than expected existing home sales data. That reinforcing the view that they may raise rates sooner than expected. Maybe september is still on the table. Today slightly weaker. The euro at 109 and now 110 against the u. S. Dollar. Coming up after this break, the drop in the price of oil is only shortterm but how low can it go before we see a rebound . Well discuss that after this break. Are you moving forward fast enough . Everywhere you look, it strategy is now business strategy. And a partnership with hp can help you accelerate down a path created by people, technology and ideas. To move your company from what it is now. To what it needs to become. Historic news broke last week. Well were getting the first signs of business. Were just hearing that from the iran deputy finance minister that iran has in the past couple of weeks approved projects by European Companies in iran worth more than 2 billion. This raises questions as to what type of projects these are and when they will come to market. In the meantime the deputy finance minister saying we already approved projects by European Companies and theyre worth more than 2 million. Japanese exports jump 9. 5 year over year in june. Slightly below analyst expectations but still the fastest pace of growth in five months. However, analysts express concern the slow down in china could impact the data Going Forward. The out break in south korea had a big impact on the countrys economy in the Second Quarter according to the latest data. Gdp grew at 0. 3 in the Second Quarter down from 0. 8 in the previous three months. Lets get more on how asian markets are trading with sri who is live in singapore. Hi, sri, how are we looking . Lets start with south korea. The q2 number was the worst print in system six years. The mers impact was to blame here. So it begs the question that as to whether the central bank is going to be more commentive. So some very modest gains there shrugging off a q2 number and expecting more rate cuts. The shanghai composite was the run away leader today. We have seen six straight sessions of gains here and its because beijing continues to reaffirm its commitment to suring up the market and suring up Market Sentiment as well. This number of 4,150 has been thrown about as a socalled bailout target. That could be the number at which perhaps the authorities start to back away because they feel the market generated enough upside momentum and perhaps this recovery in stocks is selfsustaining at that level. Its not an official target. Well have to wait and see when we cross that whether the accommodation and very Aggressive Health and support from beijing will start petering out. Nikkei 225 solid day as well. 90 points to the good at the close and its really down to the earnings numbers. They had a pretty solid report. Stock was up by 10 . We really hit the full stride for corporate japans earnings season in the middle of next week. Thats where we stand. Back to you. Thank you so much. Lets take a look at commodities because yesterday we saw wti break below 50. A level it has not been below for a couple of months now. Gold also selling off. In todays trade a bit of a relief rally here. At least in gold. Up about 1 or 11. Brent crude hugging the flat line and a similar story for wti crude still trading below 50 barrel. Richard jeffrey, chief Investment Officer still with us here on Worldwide Exchange. Its interesting richard, it seems like every asset class so far in 2015 has been a victim to these massive swings. You remember the currency market earlier this year thinking the euro would trade in parity with the dollar and of course the bond market in june where we saw the applied volatility here in europe and the bond market hit a two year high. It now seems hike its the Commodity Markets turn. It does. I think what youre seeing is a number of factors. The key thing is growth in a crucial area of the world is slowing down and thats asia and theyre finding its much tougher into western economies. Even though we have better momentum than people thought its a much harder investment environment for countries like china and their demand is falling. Theres reduced commodity demand and thats essentially what youre seeing in Commodity Markets. I would just think we already knew about the weakness in china. So whats the reason behind the massive move in commodities over the past couple of days. Isnt it more about the stronger dollar and fed policy and the lack of inflation driving commodities down this time around . I dont think its a lack of inflation. If anything there are are signs that Inflationary Pressure in the west is building up a bit through labor markets and wage growth and what happens in Commodity Markets. They tebd tond to move and stabilize for awhile and jerk again. We have seen one of those and its essentially supply conditions are fairly easy for a lot of these commodities and theres a weakening demand if youre invested with a would your recommendation be . Sit tight and wait this out or cut your losses and get out . Its simple. You should have sold it six months ago. If you havent what do you do now . Im not here to give people investing advice. Im here to talk about the fundamentals driving the markets. When we look at the economic and strategic backdrop theres clearly the potential for instance for gold to move lower. I thif what gold is responding to is the fact that actually risk in the World Economy is gradually diminishing and some of the geo Political Risk also seems to be diminishing so the reason for holding gold is disappearing. Seems like investors are finding new ways to find safe hachb or safety given times high uncertainty. Well, bonds look a bit more attractive than a couple of weeks or months ago but i dont think theyre an attractive investment. When youre looking at the yields theyre not even compensating you for what the likely inflation rates are going ahead. But as far as gold are concerned people coming out of gold arent looking for other safe haven assets. They want to take on more risk and thats encouraged by the fact that economic momentum is gradually building up. Absolutely. Spot gold back above 1100. 1104. Well leave the conversation there. Thank you for joining us on Worldwide Exchange. And still to come here on Worldwide Exchange the central bank that has cut rates more than any other said enough. We bring you a round up of the emerging market rate decisions coming up after this break and how that could impact your money. Dont go away. Its super earnings thursday. Welcome youre watching Worldwide Exchange. Credit suisse beat expectations despite a lack buster performance from the invest ltment bank. We want to rebalance the swiss for Private Banking and we want to increase the wake of those activities in the Investment Banks. Currency head winds sit syngenta with first half sales falling 10 but the ceo telling cnbc the firm has no intention of thrashing out a takeover deal with the u. S. Rival monsanto. Theres nothing to negotiate. Its a beat for unilever too as sales rebound despite weaken in emerging markets. The ceo tells us he is planning on another year of volume growth. Overall results are good. 2. 9 underlying growth. Overall growth 12 . This is the 7th year in a row that we have top and bottom line growth. Strong internals as well. Daimler swerves. A slow down in china with a 54 in operating profit. The german car maker expects a significant rise in sales this year. Welcome to the show. Youre watching Worldwide Exchange. U. K. June retail sales with an unexpected fall. Forecast of 0. 4 on the month and up 4. 9 on the year but as we just said u. K. Retail sales for the month of june coming in lower than expected. Sales of negative 0. 2 on the month and 4 on the year. So thats the data coming out of the u. K. In te