Shaping up for a second day of gains. Futures positive of 65 points on the dow. Overall it seems like market this morning. Theda lets go around world for indepth coverage of our top three stories. Robin ganguly is in hong kong. Matt miller is here in new york. And Francine Lacqua is in zurich. Lets start with francine. Why the big jump in the stock this morning . The jump in the stock is basically because we had earnings that were not great but they were better than analysts thought they would be. Theyre trying to execute the strategy unveiled in november that he had to update in march when things got uglier when he thought they would. Execution andout costcutting and targets. This is not a great set of results but they are going in the right direction. The ceo said this means they are doing better and they are happy with the progress. We are pleased with the results. If you look at what we are trying to achieve, the growth divisions, switzerland, asia all had a really good quarter with Strong Influence and stable or increasing margins. Not only did we grow but very good quality. When you look at that share price reaction gaining almost 6 . Before the market opened Credit Suisse losing some 38 the most among european banks in the last 12 months. Amanda he remarks that this is a bit of a comeback after a difficult last quarter. E said it feels fragile how are they coping with market volatility . Worryne this is the main that the Investment Bank that has not been able to code volatility will have to take more pain. I tried to get his sense on china and world growth. He believes that it will get better but he didnt want to take a very strong stance on it. Overpromiseant to and under deliver. He wants to do the contrary. He said he does not expect the market to go to hell but he would be very prudent because of lack of liquidity in the market. David there was some china data that came out overnight. The Consumer Price index rose for a Third Straight month while the Producer Price index fell 3. 4 . For a closer look at the numbers we go live to Robin Ganguly and hong kong. What does it tell the chinese authorities about what they need to do in the economy . This is a cpi growing at 2. 3 for the third consecutive month. Pbocs far below the desired target rate, it does ease pressure on the central bank to ease Monetary Policy. We had data over the weekend showing exports climbed as well. This does give chinese authorities more room to act and less of an urgent need to cut Interest Rates again. David that number is still below their target. Isnt that right . Yes. We had a growth in fx reserves probably the market took it to dan that the components appreciated a fair bit against the dollar. This is all against the backdrop of the dollars worth quarterly performance in several years. Data dewpoint at certain do point at certain stabilization. David one of the numbers that jumped out at me was pork. What is that about . The cpi is often referred to in china as the china paiig pork has a pretty significant role in cpi. Nobody is really sure what exactly the components are but i think they increased about 7 this year. They did play a role in cpi. David thank you, Robin Ganguly from hong kong. Jonathan equities rolling over just a touch. Investors in the United States and beyond, a big earnings day coming. Allergan earnings coming up. , just waiting for them to tick across the screen. Earnings should be about 30 below what they were last year. Revenue down about 6 compared to last year. Looking for about three dollars per share. And about 4 billion in revenue. We will watch for any headlines about allergans spinoff of its generic business. Our Analysts Expect that to be approved by the ftc. Will watch that stopped. Its down about 30 year to date. Disney is another one we will watch closely. Very little change in the premarket. Just about even so far this year. It had a big drop in january and february and has been climbing since february 12. Disney is expected to show growth in earnings and revenue. The surp show you function. You can expect them to surprise. We have seen what they have done in the past quarter. Disney has surprised in 19 of the last 20 quarters. You dont know whether shares will react positively. Even if you get a positive surprise more than half the time you are getting shares actually fall on earnings day. Take a look at disneys earnings across the past 20 quarters. All of the green flags are positive surprises on earnings. You see a big drop in the share price after the earnings are reported. David we are looking for movies on the upside. They have had a couple of big blockbusters. They also have the jungle book. One. He marvel matt jungle book will be in this Current Quarter. David and we will look at espn on the defensive side to make sure it is not going down. Those will come out after the bell. Jonathan vonnie quinn with some first word news. Vonnie in canada, 90 of the city of Fort Mcmurray survived the massive wildfire. About 2400 structures were destroyed. The fire forced 88,000 people to flee and they will not be allowed back for at least two weeks. A german train station was probably politically motivated. An attacker killed one person in aounded three others town about 25 miles southeast of munich. The suspect is a 27yearold german. Witnesses said he yelled god is great in arabic. Congress could pass a bill to help puerto rico with its debt. The bill would crte a control board to approve puerto rico spending and restructure its debt. Week the islands Development Bank defaulted on 370 million. Im vonnie quinn. Suissen up next, credit enters the least ugly contest. A Second Quarterly loss. Not as bad as expected. We will hear from the ceo and his plans to turn around the swiss bank. The interview is next. Up 4. 5 . K of jonathan this is bloomberg. Credit suisse posted another quarterly loss but shares arising after the ceo, Tidjane Thiam said he is confident. Francine lacqua talked with him and joins us live with more from zurich. Its the classic least ugly contest. Its not as bad as some investors thought. Francine thats it. He was confident about the future. But what they came out with in march was a little bit distraught. They had to cut back on some of their outlook. Today there are no income was smaller than their net income was smaller than expected. He says everything is on track. There doesnt seem to be anymore capital raising. Overall he seems confident about the future but didnt want to be overconfident. Here he is. There wasnt there was a time in january and february which were very bad. March and april were better. March and may are showing some positive signs. It is always difficult when you are in that position. We still remain cautious in terms of outlook because it feels fragile. Sentiment feels fragile. Francine less volatility . We are not ready to make a prediction on that. Hopefully. But the market is very sensitive. There is not much look pretty. We have to see how the Second Quarter unfolds. Francine so it will not be easier to make money in the markets. Not necessarily. There has been an improvement. We look at things like our ipo pipeline, it is very strong. There are spots where we see strength but then those areas. Volatility around china and numbers coming out. Francine 6000 job cuts this year. You are on target . That was the target and we have done 3500. At the end of the First Quarter. We think that is progressing at that pace. We have the target of 1. 4 billion for 2015 of net savings. We have already done more than half of that. We are confident we will hit the target before the end of the year. I am always sorry to have to talk about job losses but its a price we have to pay to create the platform we want for the future. We dont believe in the boom and bust model. With great years and terrible years. We need a Strong Capital base. Income relatively stable streams. Something maybe we dont talk about enough, Good Business conduct. Good compliance. Healthy growth so that we protect the reputation of a bank which is our most precious asset. We really think about serving our clients and making sure that they are happy. About thealk connection between private bank and Investment Bank. We need 4. 2 billion of net flows in asia in the First Quarter. Referenced to pb. People who know our Investment Bankers say why dont you talk to private Investment Bankers. We really believe in that model. We believe it works. Longterm is huge. These were not a stellar set of results but, encouraging news that Credit Suisse badly needed. Jonathan some allergan earnings. Allergan will buy back up to 10 million in shares to consider extending a program after an initial caution. The big headline, a board authorization for shared repurposed rodin repurchase program. 4. 5 and some change. Allergan will buy back up to 10 billion in stock. David it is contingent upon them completing the other deal. Amanda i think its important to note that when the first thing a company says on their earnings day that they are buying back stock that maybe there is something in the earnings they are not too happy about. Jonathan put it right back. More on that story in just a moment. Lets get more on Credit Suisse from matt miller. Some of the figures. Some ugly figures. Matt maybe not as ugly as some of their rivals. Obviously the market has reacted very positively to these numbers. Credit suisse is the biggest loser of european banks. But look at the return on tangible equity. It is compared to ubs in white and Deutsche Bank in purple. Deutsche bank is doing far worse 13. 5 edit suisse with return on equity. Credit suisse also is still pricier than its peers. Or its peers are trading at a cheaper price to book value. Barclays are and both trading at a cheaper price to book than Credit Suisse right now. That the market seems to value it a little bit higher than Deutsche Bank. I think Deutsche Bank proved a bigger scare to investors than Credit Suisse with all its earnings problems. David and those legal issues are a liability problem. Revenue at the Credit SuisseGlobal Markets unit down 62 . Deutsche bank it was around the low 20s. Thats a huge fall away. Private bank has a who just reported some really decent margins, the highest since 2011. This is the unit he really wants to beef up and take advantage of. Investors are looking at the situation with the likes of Deutsche Bank versus Credit Suisse and saying the core of that company has something to fall back on. David their domestic swiss bank is doing very nicely. Amanda there is still a huge runway of layoffs ahead of Credit Suisse. Coming up, Mario Draghis decision to drop the benchmark deposit rate below zero has germany worried they may be entering a Housing Price bubble. We will take a look at that after this. Jonathan good day to those of you in london. You had two days of hot weather. I call it summer. Its over. Thats the rest of the year. The ftse 100 pretty much dead on the screen. Futures were largely positive. Dow futures up by only 34 points. Points. Res barely up 4 just. 2 . W up dollar yen with a 109 handle. Treasury yields a little bit higher at 1. 76 . The potential, the possibility to test 1. 5 on the 10 year yield. Lets take a look at the top trending stories on the bloomberg terminal. I want to start with one that struck me. This is john malone. This suggests that he has to make a decision about what hes doing in europe about his cell phone business. There has been talk about him buying vodafone for a while now. What this piece is saying is they may have to back up and go for 02 which is owned by telefonica. I understand it is more expensive than vodafone but maybe he could get that deal done. He has to do a triple play. You get your Cell Phone Service and broadband and landline altogether. He needs more space. A prettye has successful track record at making these deals work for him. David i should say. Amanda we will go to matt miller for market movers. Vader of cable was his nickname. David but darth vader who made a lot of money. Matt i never got my kids would want to be luke skywalker. Vader is way cooler. We have the big drugmakers rising across the board. Todayre having their best rally in three weeks. Bayer is up. Take a look at the european banks. We talked about Credit Suisse. Big gains of 4. 5 percent. Financials are doing quite well across the board. As far as a earnings what we had yesterday after the bell so far fairly disappointing. Solar city, huge disappointment. The same is true of mankind and gap. It will not be pretty today for the gap. Jonathan coming up, Deutsche Bank sees a single Silver Lining in a lackluster q1 earnings season. We will take a look next on bloomberg go. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Jonathan this is bloomberg. Im jonathan ferro. Of the early some gains up by 51 points. S p 500 futures positive. The dax really rolling over. Now just of. 3 up. 3 . Dollar yen to a 109 handle, up. 7 . Governor kuroda with a big smile on his face this morning. Citigroup joining steve major over hsbc with the likelihood that the yield could test 1. 5 . Yields currently 1. 76 on the u. S. 10 year. Amanda we are just two hours away from the opening bell. Up moreuisse shares are than 4 . Bank reported a Second Quarterly loss but the ceo Tidjane Thiam said he plans to deliver on cost cuts this year. Industrial production in the euro areas three biggest economies down in march. The drive to oust president Dilma Rousseff is back on track after the lower house reversed a decision that had earlier threatened to throw the entire brazilian impeachment process into chaos. We have breaking news on allergan. Matt allergan coming out with earnings. Was 304. Etf we were looking for three dollars even. By four sense. Cents. Revenue from botox. Beating on that line as well. Allergan selling more botox than the street was looking for. Total revenue was 3. 8 billion. A little bit lighter than the 3. 95 billion. That may not matter much. Botox is obviously the main product. They are spinning off their generics division. Coming out with better earnings than estimated. Shares up 1. 9 . Amanda giving of earlier gains after they announced up to 10 million 10 billion in a stock buyback. We will see how investors react when more volume starts to train. We are only looking at a few hundred shares trading. Investors want to know exactly what the incoming president of the philippines will do with the economy. He was elected with 39 of the vote. He campaigned on a platform of fighting crime. Of 6 iny grew upwards the last year. The trades Union Congress in the u. K. Warns british employees will face excessive working hours if the country leaves the European Union. Integral a group for British Union says brexit supporters want to be able to scrap employee working time protections. May just a mandatory state ride Water Conservation statewide Water Conservation advisory. Quinn. Nie jonathan tom keene comes from bloomberg surveillance radio. Tom i got botox right here. Jonathan the last couple of days a cloud of doom and gloom and a debate dominated by the fed. The fed, the markets and their relationship and a minneapolis fed president that has a lot to say for himself. Take a listen. I think Market Participants are too focused on the fed. Im reluctant to draw even more attention to shortterm monetary decisions when attention should be focused on solutions to longer term issues. Jonathan tom keene. The market obsessed by the fed or the other way . We are going to look at this chart. This is what hes talking about. The red line is the market and the green line is the fed. That red line is distant. I think the analysis is overwrought and ill placed. We have a sum of moving parts and a developed economys central bankers trying to affect good policy. They are doing it for two uniteds, two c kingdoms, two switzerlands. There is a large body of americans not participate. Jonathan that spread has been there for a long time. When it reconciles it doesnt from the top down. Does it from the top down. This is not a market obsessed by the fed. The market is ignoring the fed. Tom im going to defend the fed. The markets were fixated on the next data point. The fed is going to look at the data and on june 14 they will start to figure out what they are going to do the daytoday analysis we have zany to say the least is zany to say the least. Big house, small house, activists, everybody coming out with the world is coming to an end. Equities are way overvalued. It is the oddest of times. Jonathan this huge amount of bearishness. That doom and gloom as is manifested in the bond market. Global bond yields near alltime lows. Tom we are supposed to have a debate in the market. Hsbc and relative optimism thats what makes the market. My issue is this ne