Im anna edwards in london. Manus a very good day. Im manus cranny in dubai. They are going to guide lower for this year. They are adjusting their forecast. It will be at least 1. 4 billion. The original guidance we have been expecting of 1. 4 to 1. 6. So this is a 1. 9 new guidance. 1. 4 billion. It is in a state of, well, i suppose change, challenge in the Second Quarter. The earnings came in at 326 Million Euros. They have beaten the Second Quarter adjusted number. They are cutting the fullyear forecast. That is the critical message here. Secondquarter sales also missed 9. 8 5 million euro. Anna, it slides to 61 million. Sorry, that is 61 million versus 38 million last year. It is an adjustment number which is the most critical issue. Another redhot headline is ing. We will talk to the cfo of a group later on. Ing at 1. 26 billion. The cfo of thyssenkrupp will join us. They will accelerate their think forward strategy. Ing is very much in focus. Anna absolutely. The company is telling us their First Quarter sales came at 5. 33 billion euros ahead of the estimate. The net profit of 144 million. Key questions around the French Business. How well has the French Business has been performing . It is a big topic of conversation. What exposure do they have to the quick move in the pound they might see in the 23rd of june. We will be talking to them a little later on on the program. Firstquarter net sales, 5. 6 billion euros. That is under the estimate of 5. 7 6 billion. The sector business they see headwinds in 2016. This is a business as of late. This is the first time we are getting the two Companies Reporting together. One of the big headaches this sector has been phasing of late has been carrier, Telecom Carriers wanting to spend less than previously. Not doing quite so much spending now and that is one of the reasons why they have been trying to do diversified. They are betting on this. Newer products like Internet Protocol Network and boosting nokie software and rnd capabilities. Trying to fend off erickson. We are getting some interesting comments from nokia and ing this morning. Manus we are indeed. We will have that conversation with the ing cfo, patrick . He joins flyn. Nn. Regulatory costs impacting business. More than 300 Million Euros. A lot to talk about. Lets check in on the radar. We have a little bit of equity for your. 1. 0885. N, the yen against all eight currencies. The u. S. Does not object to its currency policy. The dollaryen is very much a focus. They say it was natural for japan. Crude dropping from 18 of 1 . 1 8 of 1 . You could go on but i will keep it simple. Anna it is a big japan story. Japanese assets really bucking any other trends we see in asia and this is the second day in a does not how the u. S. Subject to the japanese policy. All eyes on what is going on in canada, the canadian wildfire threat easing. It is a story you have been covering. Lets get the first word news from rish. Rish fighting poverty will be a top priority as he claims victory in the 13th president ial election. A zerotolerance approach towards corruption and unguarded comments failed to damage his appeal captured about 39 of the vote. Brazil has fallen into disarray. They vote to impeach president rousseff. The head of the senate said they will go ahead with the hearings. And thatken precedent rousseff was back on track. A database of more than 200,000 Panamanian Companies have been released. The database features information from millions of leaked documents from f onseka. They specialized secret Companies Including associates and relatives of heads of state like Vladimir Putin and David Cameron. The massive wildfires that have swept Canadas Energy hub of Fort Mcmurray has left 85 of the city intact. About 88,000 residents were evacuated. Production from the oil was cut by about 100 . Donald says Chris Christie will serve as the chairman of his transition into the white house. Says heblican nominee is taking critical steps to gear up for the general election. Global news each day and everyday. This is bloomberg news. You can find more by using our function. Anna thank you. Lets see what is going on in asia. It is interesting to see the japanese asset really standing apart from the rest of the asia story in the trading session, although that is because of the Dollar Strength as well. It really is. We saw the dollar rise on the speculation we could see two more rate hikes. That is put more pressure on the yen which has put more so on the nikkei. Those gains in japan has helped the rest of the region which had a bit of a volatile start. We have seen the market in china really in and out of positive and negative territory. The cpi number coming out of china 2. 3 in april year on year which is online with what the market was looking for. The number is still less than expected and we have seen some gains coming through. Pricetory of the crude playing on Energy Sectors putting the han seng down. Philippines coming back online after its election. Up by half of 1 . We are seeing the filipino peso rise against the dollar. Earlier losses we have seen downward pressure on those energy and material players, but it is up by 4 10 of one present. The boost of japan is lifting the regional iindex. It is still in negative territory and that is now its s 10th session of losses. A lot to show you some of the stocks we have been watching. 6. 4 e out of china at six in april. It is listed in hong kong which is being sold off, but toyota has received a good boost in tokyo. Commodity prices has been in quite a lot of this is impacting the oil miners in sydney today. Anna thank you very much. Manus . Attentions turn our still to the part of the world. We will talk about china. Consumer prices continue to rise. It was a healthy pace despite trading. Narrowed morehat than expected. That go to stephen engle. I cut up with the chief global economist for s p global and he said he didnt get some hard from these numbers. Stephen you have seen in the slowing economy, a firming of inflation. Chinese officials, they hate and reflation. Inflation. It is still well below the government target of 3 for the full year but it is at 3. 3 for three straight months. Coming from a low of 1. 3 in october. Now at 2. 3 for three straight months. Commodity prices have come up. The prices have gone up and food prices are up. Food was up 7. 3 . Pork up 7 from a year ago levels. That might even be a concern. The government tapping already into its strategic port reserves to meet demands. There is an inflation. But, on the other side, of the factory gate deflation persists for three straight years. 50 months in a row, four years and two months. It is narrowing. I think the commodity price rise has gone up and that has taken a little, increased the cost. Deflation persists at the factory floor. Anna we will see how much that takes up in the commodity prices. Interesting commodities we have seen but we will see how that plays out. Thank you very much. The ceo of adeco. The Company Revealed first earnings. He joins us on the phone. Great to have you on the program. Lets start with the numbers. Looking at the detail of where your numbers have come through, beating estimates, singing you continue to see solid growth. Update me on where you see the strength. Alain we are very happy with our results of the First Quarter 2016. We continue to deliver modest growth at 4 . It is coming from countries like italy, liberia and france. France is continuing its recovery. And, we have also a positive stability in our market like the u. S. , germany, the u. K. And japan. All in all, very happy with these results and the continuation of this modest growth. Anna tell me a bit more about the french story. This is a big market for you. You have mentioned it has been recovering but slowly. Are you seeing any pick up in the recovery speed . Alain no, it is slowly recovering. At 7 so it is not an explosive recovery. It is a continuous recovery. We see that in different segments. Automotive being very strong. We now see the recovery of the construction and the construction is for france, as a country, but also as industry the first segment. Slight improvement of the situation which is good. And should also accelerate in the second half of the year because there are a lot of programs being built. Anna let me ask you about those subjects. Do you see clients in the u. K. Holding back on hiring even more than they were say a few months ago because of the looming vote . Alain regarding the brexit, we have a natural impact of this growing int uncertainty. Of what we see is some customers are more uncertainty regarding the hiring of highly skills. The uncertainty is growing and will continue to grow in the direction of the 23rd of june, impact, just on the hiring of highly skilled people. In to i just want to jump your conversation and bring our viewers and little bit of breaking news. A pretax loss for the group. Quarter. The first it is 484 million. Milliont loss, 302 swiss francs. They have obtained more than half. It has come up with to restructuring in the past five months. Trade revenue is under pressure. This is a critical issue. They are revamping the credit more than half of its 1. 4 billion swiss francs in terms of cost cuts. Sayseo of Credit Suisse they will meet or exceed its 1. 7 billion cost. 2016, the target was 1. 7. That is month five. There is a lesson for shareholders. I will handed back to you and you can have a quick look. Anna we will be speaking to the ceo in the next hour. He speaks to francine willaq cqua. Alain, thank you so much for waiting patiently with us. It is great to get your thoughts on your companys performance. Thank you so much, the ceo of adecco. Up next, profits down 29 at ing. We will take a look at the numbers when we talked to the cfo, up next on countdown. Anna welcome back. The time now is 7 19 a. M. In london. Hihere is rishaad. Rishaad costcutting in the forecast of a minimum of 1. 4 billion euros compared to 1. 6 and 1. 9 billion. They set a just and earning the end ofl be until march which fell 20 from a year ago to 326 Million Euros which beat estimates. Cfo. Re speaking to the china stock regulators could deter the flow of overseas trade which is seeking backdoor listings in the equity market according to people familiar. The Chinese Regulatory Commission is weighing a possible restriction on reverse mergers including cap evaluation. Gm leading the pack in china when it comes to auto sales in april. Last month, passenger vehicle delivery at over 60 with average discounts of 18 of the automakers recommended price, according to bank of America Merrill lynch. Have badst man will news out of brussels today. They will expect the 10 billion pound bid for o2 with the three networks to create britains biggest mobile network. That is your Bloomberg Business flash. Manus thank you very much. Lets get into ing. That he is reported the earnings this morning at 29 . The weakness in Financial Markets divisions which has been driving the numbers. The cfo is joins us now. Welcome to the show. Profits drop and regulatory costs up more than 300 Million Euros. It is the bane of every bankers life. Are we at peak regulatory costs . Patrick good morning and good to be on your show. I wish we could say we are at the peak of the costs, especially after having a 300 million increased yearoveryear, the majority of which we booked in the First Quarter. The three elements are in place. Regulation and bank taxes. I hope it is only business growth. Manus what well done, by the way, on offloading you have a few quid, euros in the bank. What you going to be . Take me forward . Patrick well, we have a strategy for our bank which sent out to be one of the leaders in innovation, one of the leaders in putting Digital Banking first. We have a strategy which is growth. We are achieving significant levels of growth, even in the First Quarter with 7 billion lending growth which is above the rate of last year. Increasingly, we are doing that with an increase in interest market. Our strategy is very fruit. We are pleased with the execution of the strategy. You have a 60 pay yet on your dividend. Others are either not paying at all or perhaps under pressure. Could you stick to a 60 share out . Could you say what bank stock do i have to own . Can you stick to it . 65 ick well, it is a progressive dividend policy. We dont have a payout ratio per se, but it is very healthy. We are committed to the strategy and achieve that last year and aim to commit to it. Entirety of our profits this quarter to put it aside. We are fully committed to that strategy and the results will enable us to meet it. Manus i went to get under the hood slightly. I want to talk to about your reserve. Are based on reserves. They are volatile as heck. My question to you is will you look at that loan book are you building up additional hedges . Are you scaling back your lending . Are you going in were other people fear to tread . Patrick i mean, within our own business, we have reserved lending at 2. 8 billion which is exposed to the oil price risk. We are senior lenders so we take collateral on our business. We rank ahead of more unsecured bonds. Like our the book is stable. Manus no addiational provisions . Patrick maybe one or two but nothing significant. We have a stress test which we communicated before. We would only start to encounter material pressure on this if oil prices are sustainably below 30 a barrel. It is considerably above that right now. Manus we are right now. Thank you very much for the contact. That is patrick flynn, the ing cfo. Anna thank you. Just the recount what we have heard in the last 15 minutes. Credit suisse, the secondlargest bank in switzerland, a quarter one net loss 202 million francs. That is better than the estimate of the loss. They are talking about accelerating their cost saving programs to meet all targets and say 58 of their 22016 headcount has been made. In terms of the revenue side of the business, they said the remainder of the Second Quarter may show a tough environment and the levels of client activity and might persist into the Second Quarter like we heard recently. Up next, we will talk about trade in the context of brexit. We will talk about the future of u. K. Trade deals later this morning and this next month. Anna welcome back. The time is now 6 30 a. M. If you are watching in munich, we are watching for numbers to come in. The worlds secondbiggest insurance business. Profits from that particular company has not hit the wires yet. Manus . Manus i think Credit Suisse, im trying to debate whether the cost cuts of which they are ahead. 1. 7 billion swiss francs kicked in. I was literally sweeting it out for you. Billion versus a smaller than expected loss. From a market perspective, we want to hear what the ceo has to say. It is going to be a tough quarter. Lady that manages to get the news out of it. The net loss is 302 million swiss francs. Suisse, 58 credit of the 2016 headcount reduction this is people in jobs that has already been made. Those of the headlines. Lets get across to rishaad. He has the first word. Rishaad taking a look at Credit Suisse with the second consecutive loss. Switzerlands secondbiggest bank with a loss in the end of march. A loss of 344 million. You can catch our interview with the chief executive at 7 15 a. M. U. K. Time. Rodrigo saying fighting property will be his priority. It will include a zerotolerance approach to crime and corruption. It is capturing around 39 of the vote. Brazils political system is under disarray with the new head of the lower house is vetoing the impeachment but they say they will go ahead with the ousting of the president. Whicha drive to impeach is back on track after a day of chaos. A debate of more than 200,000 Panamanian Companies have been released in the International Consortium of investigative journalists. Millions of leaked documents from a lawfirm. It sets of secret Shell Companies with clients including relatives and associates like Vladimir Putin and David Cameron. The massive wildfires that swept through Canadas Energy hub of Fort Mcmurray left 85 of the city intact including the downtown. Some partsews of the city completely leveled. 88,000 citizens have been evacuated from the area. It is cut by about 40 or one Million Barrels a day. Donald trump announcing that Chris Christie will serve as chairman of his Team Planning his transition to the white house. The nominee says they have taken critical steps to gear up for the general election. The endorsement after dropping his own president ial bid. You each day every day with our 2400 journalists located around the world. You can find our top stories on bloomberg. Anna thank you very much. We have got those numbers. The worlds second largest reinsurers says they have guided lower on their profit since 2016. The 2016 profit at 2. 3 billion. We have seen a range of 2. 3 to 2. 8 billion so they are coming in at the bottom and although that might not be a surprise to too many people because back in april, we heard from the management of the business that the 2. 3 to 2. 8 range was ambitious. They were at that time confident of a stable dividend so they have a confidence level for the business. A combined ratio of around 95 they hav