Was therefore 5, 6 years he was a legend. During the financial crisis this guy had faults. He used to get into big positions, saw the risks and reward and took on the trade. Mark a former colleague of the allegedly lash crashed rater, calling him a legend. We are live as he fights extradition to the united states. Welcome to countdown. Caroline coming up, youtubes 10th anniversary. We will take a look at how the video giant went from business to a global phenomenon. But there is one social network that will surpass youtube and videos in the u. S. , and that is facebook. The breakdown facebook, as they talk all things tech. Mark more evidence this morning that the slowdown in china falls to its lowest level. Hsbcs flash pmi came at 49. 2 making a mark for contraction. For more detail, lets go to zeb in hong kong. This is the lowest level we have seen in 12 months. Zeb yes, and it could get worse. New orders and prices deteriorating jobs shedding. This survey suggests that the peoples bank of china and policy makers will need to undertake further reserve ratio cuts in china, and Interest Rate cuts. Lets not forget that earlier this week, we did have that rrr cut, the second this year, and there could be more ahead. Back to those manufacturing numbers they had immediate effect on the market early on. We saw earlier declines in the shanghai deposit. Take a look at the manufacturing numbers, coming in at 49. 2 from hsbc. The estimate was for 49. 6. Any number below 50 indicates contraction. This is our First Reading of the economic help for april, and it just deepens concern over the slow down. Those firstquarter numbers show the weakest Economic Growth since 2009. The policy makers in china will today have a very delicate dance. They need to keep the Property Market moving along as well as equity and they need to make sure that they support these markets and do not allow them to soften any further. It will be an interesting time and perhaps troubling. Across the region, we are generally seeing gains for regional stock. And looks like australia and new zealand the big trading partners, are outstripping them on the commoditys front. We have shrugged off those declines so far on the hang seng. Hans thank you. The reserve requirement in 1999 stood at 6 , which leads them a considerable amount of room. Mark the worlds biggest drugmaker is warning that the swiss bank profits have beaten estimates on all three key metrics operating. Analysts are estimating 3. 17 million. Sales are narrowly below estimates for the quarter. 12. 8 billion was the estimate. What is important is that it confirmed its target for the year. Back on january 27, it said it expects mid singledigit percent Net Sales Growth this year with core operating income growing ahead of sales at the high singledigit rate. It has confirmed those forecasts for the year. Back in january, the company said it will seek to cut costs and switzerland after predicting that frank gains will hurt profit in 2015. The chief executive says that novatis will examine operations in its home country, accounting for 30 of its costs, to find ways to alleviate which has strengthened since the Swiss National bank in january, surprising the world by ending the cap. The currentcys rising value offset declining profits for all drugs with a reorganization, including disposibles. Cancer Business Sales narrowly missing profit. They will meet its forecast. Caroline lets turn our attention to Deutsche Bank. The bank is poised to settle u. K. And u. S. Investigations into benchmark Interest Rates for about 2 billion euros, according to a person briefed on the matter. Lets go to shane stronach. Shane, how does this 1. 5 billion euro litigation cost compare with Deutsche Banks total Legal Provisions . Shane that morning. Good morning. We know they set aside about 3. 2 billion euros for all possible litigation costs. They dont break down that figure. In the First Quarter, they will have litigation cost around 1. 5 billion, roughly half of what they set aside. There are several issues open at Deutsche Bank so they have investigations into effect stealings, assetbacked securities, allegedly sanction violations, and a possible settlement with u. S. And u. K. Authorities could come as early as today. Most people think that the 1. 5 billion euros will mostly go toward a potential libel settlement, but we dont know at this point. We hope to get more clarity. Caroline what do you think analysts are viewing on this potential settlement . Is it a relief . Shane the number sounds big but what we heard is it will most likely be over 1. 5 billion. It would be bigger than the largest settlement so far. But the largest so far was up to 2012, at ubs. It looks like analysts are saying about who cares . There is so much going on at Deutsche Bank right now, they just want to have this off the table so they can concentrate on a strategic review. Caroline talk to us about the strategic review. This is a rather interesting timing, if they do indeed announce this libel settlement. Shane right, so tomorrow we heard that the Supervisory Board should be meeting to review the options presented to them by management. Potentially they could sign off on an option. Having libel wiped off the table and pushed aside gives management a clear head going into this meeting with the Supervisory Board. Also it lets them look to firstquarter results, which they said last night they are expecting near record revenue in the First Quarter, and expect to be profitable despite the 1. 5 billion litigation cost. It will be interesting to see what happens in the next week there is a lot open at Deutsche Bank. Caroline we will look out for the reaction. Shane stronach in frankfurt, thank you. Hans European Central bank has doubled emergency funding to greek banks. The move comes ahead of a meeting today between the Prime Minister and Angela Merkel. On the sidelines of the European Union immigration summit. Reports of a softening stance on reforms. Hans nichols is on this story in east berlin. Hans, this new limit will be a bit of a relief. We are the understand that this is temporary that the liquidity has brought and it cant run forever. Hans the questions about how long it will run we dont know how high that circulated within the ecb. What we know is that they increased the amount by one point 5 billion, bringing you all the way to 75. 5 billion in emergency liquidity assistance. What the bank is try to do is have this number match the outflow and if you go all the way back to midfebruary when the first big increase was announced from 60 to 65 billion, that extends the midfebruary date in back of the envelope constellations. The question is what effect will that have on the economy, and growth . There is some reason to be optimistic about talks taking place here is what he had to say in recent days. There has been tangible progress in the quality of discussions. But there are significant differences on substance, and as you mentioned, they will be meeting on the sidelines of that summit in brussels today. It will be their third facetoface meeting. Manus there were some interesting market yesterday we have the deputy finance ministers comments. Merkel spoke and she gave praise to the periphery nations, but she wasnt so if use it when it came degrees, was she . Hans it was conspicuous by its absence. Heres what the chancellor said. She was talking about what some nations had done and she said some had gone through terry to programs and earned breathing space. I am thinking of spain and portugal. We can say that ireland is the Growth Engine of europe. Nothing on greece and merkels comments. She said germany was committed to doing reforms, even if the International Community which could be the u. S. Even if the International Community says they should head in a different direction. Manus hans thank you. Constables in berlin. Mark a british trader accused of helping cause the 2010 flash crash and he fights extradition to the united states. Conditions of the bail includes sleeping at his parents home in hounslow. Ryan good morning. What else to we know . Ryan other conditions of his bail are that he stayed between the hours of 11 00 p. M. And 4 00 p. M. Here in this suburb. He has to report to the Police Station three times a week. He must refrain from using the internet, even agreeing not to buy a phone. That is in addition to giving up his passport while he is fighting extradition and phoning up the 5 Million Pound bail. We spoke with his lawyer does he have the money . The lawyer says he does. In addition to about 100,000 pounds in betting accounts. There is some question about whether he would be able to pony up the bill. Before the flash crash happened we do know from u. S. Prosecutors that he set up some accounts offshore. Mark what are we learning ryan, about his trading practices . Ryan one of the most interesting things we have learned over the last 24 hours is that he wasnt doing all this is trading here at the family home. He was using trading firms, or trading outfits to do that, including a place in wo king. The way these trading firms work and there are dozens of the u. K. Are daytraders effectively pay a fee to use their resources and share any portion of their profits. At least that is often the case. He was working there for a good portion of the time during which prosecutors say he allegedly made about 40 million in illicit profits. He was a bit of a rock star, we now understand. Really revered by his colleagues. How to listen to what one of his former colleagues had to say about him when he was speaking to a group of want to be traders. This guy passed by the firm, and he was therefore i dont know, five or six years. A legend in our firm. During the financial crisis this guy for lack of better words had faults. He used to get into big positions and he saw the risks and rewards and he took on the trade. Ryan it is a port to point out that they have not been accused of any wrongdoing no suggestion from prosecutors on that front. Additionally, we also know that sarao wasnt working there at the time of the socalled flash crash. He was working out of a different spot. Very interesting, though. Could you really have been doing all that trading out of his home here . We have learned that the answer is no. Mark thank you. Caroline lets check out some of our other top stories. Brazils statecontrolled oil Company Released its first audited Financial Results since the scandal. It shut itself out of the bond market. The firm has suffered a net loss of 7. 2 billion. Facebook results missed analyst estimates. X by the strength of the u. S. Dollar. The networking giant gets more than half of its income outside the u. S. Facebook saw a 42 rise in sales, but said they could have been as high as 49 without currency effects. Google unveiled its wireless mobile phone service. Price plants should the pressure on at t and verizon with a service offered through sprint and tmobile. Google is trying to attract more users. Manus it is 6 16 in london, the start of another trading day. What happens next in a flash. Mark sarao is still trending. Manus this raises use questions raises huge questions, not just about the individual and his alleged role, but also about the exchanges in which he traded and how they are regulated, how they worked, and how do we actually know . One man went so undetected on a trading floor, made a Million Dollars in one day . Mark later, we will look at the ericsson firstquarter earnings then caroline will break down the facebook numbers. Plus, what a strong dollar could mean for other u. S. Tech giants. We will catch up on the avengers debut. Could it be the next billiondollar blockbuster . Caroline first, china pmi has fallen to a 12 month low. Our next guest when the prolonged slowdown will and, and what it will do to equities. Mark chinas pmi dropped to 49. 2 in april, missing the estimates. That is a 12 month low for the manufacturers suggesting government efforts to cushion a slowdown are yet to revive chinas factories. Lets bring in edmund. Time to cash in your chinese equity gains over the last 12 months . Edmund dont be so dramatic. I would rather focus on the fact that chinese equities are the underperforming Global Equity market over the longterm. What we are in right now is a catchup phase. Despite the substantial rally, it looks amazing. The valuations are still much cheaper than the global markets. If you put it against the s p 500, china is a, way cheaper. Hong kong as well. Manus we have a story out this morning that says that the record valuation was 23. 7. You dont think it is overly bulked . I just thought id go in. Edmund there is clearly going to be lots of volatility. Lets be honest. But that would be the buying trigger. Caroline what would spark that setback . Is it raining in some of the trading habits that have been allowed . Edmund exactly. The Chinese Government is trying to encourage the chinese public to invest more, to save but not in the form of cash savings, but to put money where it can be used to affect the real economy. Maybe they have gone too far. If you pull it back a little bit, some fine tuning. Mark greece. Edmund that is what i put on my bike chain. [laughter] mark are we any closer to a resolution . Lets not go into the minutia. Are we closer to a resolution or are we heading closer to a crisis . Edmund both. We are on a knife edge. We can go one way or the other. It will be something that the European Union members will necessarily want or crease will want, it will just or greece will want, it will just happen. The potential for cock up his massive. Is massive. We hope that they will see sense but politicians seeing sense is not their forte. Manus one of the great debates is whether the word continues to find German Government specifically because of what you just said. You would have guessed yesterday mark the trade of a lifetime. Manus where are you . Edmund he can say what he likes. The fact is, you can talk about the trade but you cant talk about the trade a trait has the direction that is not timing. That is a longterm view. As a traitor that is useless to me. I can get absolutely murdered in the meantime. There are more than 2 trillion euros of european government bonds at negative yield. Mark give us a trade for today in making money trade inequity. Edmund japan. By japan. Caroline any industry . Edmund i like airport related industries. Sony in particular is still through its restructuring and has done fantastically well, but if you look at the potential gains in earnings that could make and the repositioning of the company, it still has a long way to go. Caroline even though we still keep getting these negative headlines . Wikileaks getting involved . Edmund i dont care as an investor. The underlying story is that Consumer Electronics is not what sony does principally. The films are incredibly successful, but it is also building a massive platform and semiconductors. That is one of the growth platforms in the company. Manus they have a huge generic coming up on the next five years you have an interesting take. Edmund i love pharma. I think there will be more m a activity. You have seen we will buy mylan, what is going on it tells you that they are threatened, they will no longer be the leading world generics maker, and i think they will respond. Mark good to see you. Edmund shing. Coming up ericsson reports earnings we will break down the numbers. Mark manus welcome back. We are looking at risk this morning. No huge reaction in the Australian Dollar. We dipped when we saw the index come out as a contraction. But we are balancing off those low levels 7757 is where you are. Again, just trying to put in a base level. The bank of australia, the what be surprised if he goes lower. Analysts have been running the numbers. They use an analytic system called regression analysis. The Australian Dollar should fall by another 6 . We can change the image in a flash. Lets have a look at kiwi. You are getting a bit of bang for your buck. We have the central bank. 7757 is where we are. Rates remain for a prolonged period of time. Consider cutting rates. We have weakening demand and domestic inflation rates. They have miles to go before they run out of air, anything in terms of rate cutting ability. 57 probability of a rate cut i december. Cut by december. Dollaryen. We have seen it bank of america says by dollaryen. By dollar, sell yen. The target is 128. 45. Bank of america is always good for a call. Caroline thank you. Lets have a look at breaking news. Ericsson is the biggest maker of Wireless Networks and telecommunications products, and it is missing on assessments. 53. 5 billion krone. Analysts have been looking it seems as though they are saying deposited foreign currency effects helps numbers. Sales fell from 6 operating nearly half of where analysts estimated. 2. 1 billion swedish krona. A big mess. Miss. The biggest you seems to be a slow the big issue seems to be a slow broadband market. Providers of mobile have been investing in their networks and infrastructure but we already have 4g. So slow down in the u. S. , they say, they also make the margin decrease. Analysts have been looking at 37 . Stay with bloomberg for more on this. We will be speaking to the ericsson chief executive. Mark top stories on bloomberg. Firstquarter profits at beat, as they begin to benefit from a swap transaction. Core operating income findings, 9 for the quarter. The chinese manufacturing gauge fell to a 12 month low in april, suggesting the effort to cushion the slow down. The ecb is doubling emergency funding for greek banks, but the deal remains elusive. Tomorrow, the ce