They include the audi and porsche. Welcome to countdown. It is a busy morning. Let me walk you through where we stand right now. The Banking Sector is front and center. The the news from Standard Chartered rocking the banking world this morning. Bill winters is cracking on with changing this institution. Let me show you the share price reaction. Standard chartered, from top to bottom, 8 drop in hong kong. We will see how we trade through here in europe. Ubs has just been breaking as well. In terms of the headline numbers, we had a net income 07 billion swiss franc. Looking through the numbers, i would say that the Asset Management division has slightly underperformed. Few misses,is a a few gains. Manus cranny is going to be talking to the ceo later on. Really looking forward to hearing what he has to say about his bank and where it goes from here. 6 45interview coming up at london time the a big focus on the banks in london and in europe and in hong kong. Lets get the details on how asian trade is taking place. Zeb eckert is standing by in hong kong. Zeb good morning. Markets today generally higher despite this blockbuster news from Standard Chartered, really rocking the financial sector. Of course, we are getting more details on that. It is factoring into the sentiment right now. Lets take a macro picture first and then we will get into Standard Chartered and hsbc. The msci asiapacific is up 1. 3 today. That follows the move we saw from the s p 500 overnight on wall street. The aussie dollar extending gains because the central bank is Holding Interest rates steady. This is what you have in hong kong. The hang seng of 1. 25 . Up 1. 25 . Generally gains in the session. We are watching banking and the currencies as well. Japan closed today for a market holiday. Lets dig into what is happening with those banking shares. If you look, there are big movers across the asiapacific and here in hong kong on this news of 15,000 job cuts and the rights issues. The hang seng financial index actually advancing. The clear decline or the clear decliner is Standard Chartered. Hsbc, one day after its results announcement, as it moves forward with its china joint venture plans, that is big news today as well. Snapshot of you a some other stocks we are tracking across the asiapacific ay, in the sole session seeing ition, were higher. Tire denying that it could make an offer for a shipbuilder. We will watch that and the financials. We cannot understate the importance of the news that Standard Chartered brought us a short time ago. Guy huge changes. A big chunk of the bank is effectively going to be moved off the Balance Sheet. It will be fascinating to see the impact of that. Zeb eckert joining us from hong kong. He says Standard Chartered is front and center. I read all the notes in advance of the numbers coming out this morning. There was an expectation that you could wait longer before making the kind of moves that he has made. He clearly feels that he needs to get on with it. He did feel that action was required right now. Hes going to be raising 3. 3 billion pounds. He has announced a quarterly loss which was really unexpected. 15,000 jobs are going to go by 2018. He talks about the challenging Business Environment and he says that the bank has delivered disappointing recent performance. Back to hong kong. Allhead of the headlines on of this. Give us a sense of the magnitude of what we are looking at for Standard Chartered. I think you hit the nail on the head. Action is what bill winters has promised and that is what is certain that is certainly what he gave us. Million on the pretext bottom line. Bottom line. That was a loss, i should say. 3. 3 are seeking to raise billion pounds to bolster their capital ratios. The largest shareholder in singapore said that they intend to take up their rights and fully support that issue. Hopefully that will provide some support as far as the shareholders are concerned. Another statement, a press release coming up wrapping the entire strategy together. Some people described it as a bit of a sucker punch. Bill winters trying to allay concerns that he is not doing enough fast enough. He has come out with a 15,000job reduction. 2. 9 billion u. S. Dollars by 2018. They are looking to restructure about 100 billion in riskweighted assets. He has really try to hit a home run with these statements. Guy he is on his Conference Call now and is talking about taking out 2. 9 billion worth of expenses. He clearly feels that he needs where therenesses is a huge Capital Requirement as well. The stock is down pretty hard. That looks like a big overreaction. . S that a reaction to the miss what is that a reaction to, do you think . Statements that were going across the wires, we spoke to a director of trading and he says that you have an unexpected Third Quarter pretax loss. You have a big rights issue. Discounthing of a 35 on the london price. They also canceled their dividend payout. You put that altogether and, according to mr. Clark, quite frankly, a disaster. There are a lot of problems that this bank has to figure out. Whener, down as much as 8 the market reopened in hong kong. Guy great stuff. Thank you for joining us. Ig day for banks ubs reporting higher than estimated net income in the Third Quarter. Just over 2 billion swiss franc. The swiss bank taking a tax credit. This is where life gets a little bit interesting. If you stop writing back your own credit, is that you need to question the quality of the numbers. Seeing its Investment Bank doing a little bit better. It has postponed next years profitability target, which is quite interesting. Lets talk about that. Lets talk about Standard Chartered the good morning. Lets start with Standard Chartered. Some real bombshell being dropped by mr. Winters this morning. A fairly aggressive approach. Assume reacting to all the challenges in these markets. There is an interesting aspect. Places like ubs and Credit Suisse, deutsche bank, basically have shifted towards the perceived lower risk, lower Balance Sheet guy basically it is being taken out. Exactly. Standard chartered, they were more of an investment corporate bank, lending heavy. Clearly there is a lot of consolidation and cutbacks in areas that are not coming. Europeanou look at the Banking Sector, it is perceived as being a play on europe. And a lot of banks are coming back for more d we are seven years on from the financial crisis. We have asia beginning to rear its ugly head. Nevertheless, where do we sit with the Banking Sector . I think, in europe, yes, you are right. There is still more Capital Raising ongoing. There is still riskweighted asset inflation. However, i would argue that we are coming more towards the end of the capital build for the banks rather than still having a hand in it. Coming in that are starting to creep in during the ,ast quarter questions like now the banks are effectively fixed in europe. Competition is starting to heat up in an environment that is still a low growth economic environment. You start to see margin pressure come in. Going forward, the question is in terms of outlook. ,n a slowgrowth environment you look at more stable, incomeproducing stocks. I think that is where banks sit Going Forward. The along the lines of model that ubs has adopted, pushing back their probability target. They have beaten on the net income line. I am seeing underperformance in terms of expectations for Wealth Management. They are talking about a tier 1 north of 14 . That is pretty high. It will be hard to making money to be making money. How does that model work . Modeles he push that forward . To cost savings. Maybe there is a slight underperformance expectation for Wealth Management, but i would say it is very slight. Clearly, the focus remains for ubs. There is also sort of a market dependence element in Wealth Management business is, where transaction volumes are concerned. Assets under management get impacted by market swings. It is a bit of an impact during the quarter. Sheets have been capital light. Double whatlready they were thing of doing. If you were to compare Standard Chartered and ubs, how would you compare the timeline the banks are on right now westermannotto right now . Tto ubs has done the things that banks need to do in terms of their business profile. They were two or three years ahead, basically beat Standard Chartered took a little bit more time and is basically lagging. Now they are threatening to make these significant changes. Guy thank you for your analysis. A big day for the banks. Talk about what we are watching through the rest of the day. 9 30, we get u. K. Construction pmi data. We also hear from ecb president mario draghi. Up next, we will talk about what George Osborne is going to be saying in berlin. He is talking to european is this leaders. He is saying that the people of britain do not want closer ties. How is that going to go down . We are live in berlin next. Guy it is 6 17 in london. That means it is 7 17 in frankfurt and zurich. Standard chartered is set to raise 3. 3 billion pounds. The company says it will remove 15,000 by 2018. The bank announced a surprise 139 million firstquarter loss. Analysts had expected a profit of 903 million. So a big swing. Ubs reported higher than estimated net income, more than doubling year on you numbers. The swiss bank took a tax credit to set aside euro provisions for a legal probe. Meanwhile, they postponed next years probability profitability target. And the vw scandal is widening. Regulators have ended their pro two include more models from regulatorsrsche have increased their probe to include more models from audi and porsche. Blizzard activisionblizzard has agreed to buy King Digital Entertainment for about 1 billion more than the value of their close yesterday. Ndy crushed maker candy crush maker has fallen from its highs in july. King is essentially headquartered in dublin and based in london, listed in the state. This is a really big premium. Caroline it is. 16 premium. Beingillion is what is bet on by activisionblizzard. Betting on mobile gaming, and industry they say could be worth more than 50 billion by 2019. Close to some 50 . This is an International Firm that they are buying. It was born out of sweden. Now headquartered in dublin. What makes dublin such an attractive place for Technology Companies . The Corporate Tax rate, the attractive Corporate Tax rate. Coup for european companies, seeing this size deal. There are some risks. The 5. 9 billion being spent is less than king digitals value when it first ipoed. It is a bit of a onetrick pony. Ga,all know candy crush sa but the rest of their franchises have not really taken off. They cannot quite keep the its coming. King digital has more than 200 games, but we actually only really know one franchise. What is goingof on at the summit, what are we going to hear from this . Ireland is home to many tech companies. European tech continues to lag behind what happens in the state. Nevertheless, there are some key areas where they are starting to make a big splash. Them,ne gaming is one of hence the deal today. What is so interesting is how much were seeing u. S. Investors, over among the 22,000 delegates that are set to arrive here in ireland. That the u. S. Investor base is funding the growth in europe. Europe is doing its best. We are seeing some stellar, Standout Companies doing so well. We would be speaking to block blahblah later this week. Pinup for europe in terms of fintech. That is another socalled uniform company that has gone to u. S. Investors or its next stage of funding. If you look at the statistics, we are still well behind. We have lots of venture funds in europe. We are raising more than 4 billion euros last year in terms of european vc funding. That pales in comparison to the United States, which has five times that. What europe now want to see is how much money they can raise so they can exit. King digital themselves exited 2014, giving them money to plow back into the ecosystem. How much money can keep on being reinvested in europe and seeing Technology Giant grow and continue to be bought by u. S. Rivals . Stick around the stick around. Guy thank you very much. Caroline hyde at the web some in dublin. The u. K. Chancellor George Osborne, is taking his case for European Union reform to germany. He will tell Business Leaders in berlin later what the british people do not want to be part of an evercloser union. Hans nichols is in berlin this morning. What are we going to hear from the chancellor and how is it going to go down in berlin . Hans we are going to hear complaints and an argument that you have heard before in london, and that is that there is a push for closer integration that is only causing further splits, further acrimony between the u. K. And the eu. We have some prepared remarks from mr. Osborne. Theill say, quite friendly, british people do not want to be part of an evercloser union. There is a recognition that seems in order to get any changes to the treaty, you are going to need to have german support. The venue is important. He is speaking to german Business Leaders. German Business Leaders do want to see the European Union ever so tighter. But they want to make sure the u. K. Stays in. This comes ahead of the meeting with the president of the European Council and George Osborne that will take place in a couple of days. We are expecting more specifics. But the tone will be striking. It seems as though mr. Osborne is going to be driving a hard bargain from a group that he does need to win over. Here is another excerpt of what we expect him to say. It needs to be a europe where we are not part of the evercloser union you are more comfortable with. Taxpayers outside the single currency should never be on the hook or a bailout to happen inside the single currency. That is not actually the case when you look at the different mechanisms for the greek bailout. It is clear that some u. K. Money could potentially, eventually, if there were any sort of real default, be on the hook. He will talk about the importance of having the Monetary Union welcome other countries that are not part of the union. I think the tone is going to be significant and the venue will be significant as well. Finally, the reaction will be of importance, too. Guy thank you very much indeed. Hans nichols in berlin, where the chancellor of the u. K. Is to be found today. The reserve bank of australia left its benchmark rate unchanged. However, they have opened the door to future cuts. Glenn stevens said, the outlook for inflation may afford scope for further easing of policy. The aussie dollar strengthened against the u. S. Dollar on the back of this. Is it a safe bet that we are now going to be seeing a cut further down the road . Is it a set was it a safe bet that the bank would hold this time around . It effectively was a safe bet. There was some conjecture that the rba may cut its benchmark Interest Rate to 1. 75 . But they did not do that. They kept their powder dry. There are a couple of factors here which are more international factors that are having a big play on what is happening with australia at the moment, particularly around the central bank. That is, of course, what the fed will do. The governor is correct when he says they do have scope to cut. A lot of the cutting has been to take the heat out of the australian dollar, which is now at . 72. Achievedave certainly their currency aim. It really is a couple of things. We will have to see what the fed does. We also have to see how australias overall domestic Economic Conditions go over the next couple of months. Remember, this is the busiest quarter in china in terms of production so that could go well for us to for australias prospects at the moment. Guy thank you very much. Up next, moments away from bmw earnings. They are going to be breaking. Plus, we will talk about vw as well. See you in a moment. Guy it is 6 30 in london. It is 7 30 in stuttgart. Here are the stories you need to know this morning. Standard chartered is set to raise 3. 3 billion pounds in a rights issue. They will remove 15,000 jobs by 2018. This comes as the bank announced a surprise thirdquarter loss. Analysts were anticipating a profit. Activision blizzard has agreed to buy King Digital Entertainment for 5. 9 billion dollars. 1 billion more than their close yesterday. It is in dublin for tax reasons but effectively based in london. In more trouble as regulators have widened their probe to include audi and porsche vehicles. Volkswagen is denying the claims. Let me bring you the bmw numbers. They are hitting the tape as we speak. Even. The operating line is ahead of where we thought it would be. Segment margin is 1. 9 . There was some risk to that number. The target is a percent10 . So they are within that. There was some concern that they would start to miss out on that as costs start to rise. Lets ge