Session. Breathing room for Credit Suisse. The lender ceo says he is looking at other ways to raise capital. Him. Going to hear from we are less than half an hour away from the start of cash trading here in europe. It will be an interesting session as equity markets turned around yesterday in the u. S. After a couple days malaise due to the health care failure. Asian markets overnight turned around and european futures gaining. Green. The ftse futures up 4 10 of a percent. Take a look at the bund trade. Littleelds trading a higher. Investors getting out of the safety of german bonds. Right now yielding 0. 9 . Guy lets talk about the gmm. Majors comes to fx, the we will see what happens in europe. A couple things to say. The South African rand move down by 2 . Have relating rerating coming up in april. Big holders of South African debt. A bit of a lead in what happened in london this morning. Back ands are bouncing that could feed into what we are seeing in the london market. We talk about the mining stocks in more detail in a few minutes. But first, here is Juliette Saly with your first word news. Juliette south africas rand has slumped this morning. The drop came after the president was said to have sold told Senior Leaders that he plans the finance minister from his post. That was according to three people who were at the meeting. A spokesman for anc said the people were misinformed. In australia, the worst outflow in six years has smashed. Halted coalie has operations and forced thousands to evacuate or seek shelter. Wind gusts have been measured at up to 260 kilometers per hour. It is expected to be the most powerful system to hit the country since 2011. U. S. President donald trump will sign an executive order later that begins unraveling rules and directives to combat climate change. Move will undo policies deny designed by barack obama to keep the carbon cutting his promise administration promised. Although trump fell short of leaving the climate accord. Hasit secretary david davis said britain will pay nothing less than money you officials have floated needs to be paid. The comment came days after Jeanclaude Junckers says the you cable be expected to pay 50 billion pounds. Bill is set to be a source of disagreement after brexit is triggered tomorrow. Ttish first manner minister nicolas is expected back in for her plan to pursue a second independence referendum. She is seeking permission to discuss the legal means to hold a vote by spring 2019. Lawmakers will vote around 5 00 p. M. U. K. Time a day before the u. K. Triggers withdraw from the European Union. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more. Han 120 countries this is bloomberg. Thank you. Credit suisse ceo says the bank has made enough progress in its restructuring plans and can consider alternative Capital Raising options. He spoke at the Credit SuisseInvestment Conference. In a funny way, it is a positive thing that these things are taking place. When we started in october 2015, we said we would need 11 billion in capital. We have made a lot of progress since then. Grow profitably, strengthen capital, and if you look at progress we have made in 12 assets,20 billion in [indiscernible] were hitting our targets. Legacy, [indiscernible] [indiscernible] it has been a the 12 months and a lot of progress. It was a capital backstop, and we were clear about that in february, which has really helped us, restructuring barriers and now we have been progress as we consider other options and that is all that is all the data i can give you today. Are not talking to banks, were just considering options. A lot of reports in the media, we have been clear in february that it was an option. Ooperation was continuing to theets cross now conference in hong kong. What else did he tell you is to mark that since the you get about how use going to tap that extra capital . The since we got from him is that there is no rush. He said he has got a bit of time when it comes to brexit and coming up with that strategy, but also they also have some breathing room to way those before, the base Case Scenario was that partial listing of hiss Swiss Banking unit. Now he says the progress they have made in this Turnaround Program that has allowed them one option of which is selling stopped. Stock. Analysts have said it may be the the stockn, given has rallied since july. He wouldnt elaborate on details as to what these options are. We do know that they have not talked to any Investment Banks when it comes to capital raise, and preparations for a swiss listing, the partial ipo of the banking unit, which has been a crown jewel are still underway. If you read between the lines, you can tell there is still a little bit of breathing room there. Guy talk to me about job cuts. Yvonne he said were not done yet, but when it comes to the worst, it is pretty much close to over. The, he was saying that was toughest year from them. They had to cut 2000 jobs last year. 2017, a are in for possibly 1000 cuts. The asian equities cuts side in the region has been hard hit. He said we could see jobs lost in the Second Quarter in asia. 2018, he said could be less than that thousand. When it comes to job cuts, we could be seeing some and in sight. Much. Hank you very yvonne joining us from the credits Credit SuisseInvestment Conference in hong kong. Next we talk about iron strength. The price and iron or has rebounded after an 11 week low. An analysis of the outlook for commodities. This will feed us into a conversation about south africa. Political infighting in south africa. Sending the rand tumbling as the president is set to fire his finance minister. We assess the situation on the ground. That is coming applied later on in the program. The open, cap 20 minutes away. This is bloomberg. Welcome that to the European Market open. 18 minutes to go until the start of cash trade and we are looking at futures that are pointing up after a turnaround in equities worldwide yesterday, starting in the u. S. Lets get the business flash with Juliette Saly in hong kong. Juliette ericsson provisions the third million in quarter. The company said the announcement was triggered by recent negative developments related to certain Large Customer projects. Move highlights the challenges that ceo faces as he tries to stabilize the network maker. Strategic opportunities for its media business. The long goodbye is finally over. Or that two years after he was ousted from pimco, the from he cofounded and turned into a 2 trillion asset manager, the company will pay him 81 million an degree to dedicate a new founders room in its headquarters in honor of gross and others who launched the firm in 1971. Is bracing foric losses as a slump in the pound urges british voters to leave the eu. The airline ceo said it is getting out management and taking other steps to boost margins. The company is unlikely to be able to offset higher dollar cost in fuel and aircraft. That is your Bloomberg Business flash. Guy . Guy thank you much. Finding a little shortterm support. This is beginning to edge off. Pricespoff in commodity came after the decision to cancel the vote on president Trumps Health care bill. The policy failure sentiments around the reflation trade. Cudmore. S now, mark we are going to talk about south africa in this conversation as well. But let me turn to you first of all, pulling together for me because i am trying to understand iron or and what is happening with the healthcare bill. This is a noisy market right now. Are a lot ofere factors moving. We have demandside measures, people talking about trumps ability the reflation ability to enact trillion dollar infrastructure. We have jitters around chinese growth, concerns about the chinese property market. At the same time, we have seasonal effects weighing on the number. Iron or is a very seasonal commodity for you get stronger performance in the First Quarter of the year and that tends to give back some of those gains as we progress into the year. At the same time, youve got a number of supplyside issues. Weighing into the market, whether that is growth in iron or chinese domestic producers or brazilians, or in the copper markets for instance, resolution or potential and to the strikes we are seeing. You have a number of these factors. Supply, demand and currency effects as well. Huge number of burials variables playing through these commodity markets. That is leading to volatility in the minors. Guy mark, that is an awful lot of factors for the market to think about. As you try to look at what is going on here and understand what is going on here, is it possible to get any kind of directional view, and is that directional view based on anything that you can really take to the bank . Mark i think it has been difficult in commodities. Iron or confused a lot of analysts on the way up. Popyone predicted it to out, and if it kept going farther and farther. And the collapse happened quicker than expected. There are a lot of factors, whether china, slow dynamic growth, trumps failure to get the Health Care Bill through, and the seasonality factor. Certainly metals are looking quite heavy at the moment. Weeks, commodities are looking quite heavy. Oil is trading poorly. Sentiment ongative the commodities side and that is a bad sign for growth. Overall we remain structurally bullish and the World Economy is ok, but this is a worrying sentiment right now that you cant fight. You paul, i want to ask why the iron or minors minors in general have problems keeping costs down, expenses down. Why arent they watching those lines closely enough . Paul i think if you look at the minors over the last few years, they have done a good job in stripping out a number of lines in the cost of production. If you look at the cost for iron close to 50 month 50 per ton. Now it is 20 per ton. And you have Exchange Rate and oil affects, but one shouldnt underestimate how much hard work some of these Mining Companies have done it looking to address that cost base. Clearly that is something they look at all the time. One of the few factors that can actually control in the face of the volatility we see in the commodity priceline. Look, they have done a pretty good job over the last few years. The new ceo, what do you think . Paul it is going to be interesting to see what he does. He did a good job in persuading the market. Yearsnt a number of trying to move away from his predecessor, he essentially wants to be the biggest in every commodity producer irrespective of the value. We have done a good job in underlining the need for rational behavior, constrained supplyside growth in line with demand. Guy what is he need to do . Paul he needs to do little other than repeat what his predecessor has been doing the last few years. A steady hand and nothing new. He had a simple strategy, which was to continue to pay down debt and grow the iron or expansions and in line with market demand. To the extent they continue to do that, you have an interesting story. It is if they do anything radical that people get jittery again, i think. Matt mark, i want to ask you why first off, why do you think zuma called gordhan back from a oneway one week long roadshow . Mark originally, i thought he would be doing a cabinet reshuffle. I didnt think he would be removing him, he knew the Market Reaction would be negative. Headlines this morning implying zuma has told the communist Party Leaders he does plan to remove gordhan and that would be negative for south africa. A lot of bonds are owned by foreigners, it is bad if they get downgraded. Was one of the bestperforming currencies in the world, that shows you the run it has been on. If the story was positive, zuma has killed that. Matt paul, what you think about the rand . Now i can only get 13 for a dollar. Shouldnt them a move like this week in the rand . Paul we have to see with the full impact of this will be on the rand. From the perspective of the Mining Companies based out there, the we crammed actually helps. Actually helps. If you look at the pgm, the rent basket price attracts a weaker rand helps on the cost front. From that respect, the quite like it. The greater perception of Political Risk in south africa is an mining district and that at the other way and can impact ,ompanies like Anglo American some of the companies with the heaviest South African exposure. Guy if we get a downgrade of south africa, does that change the in the stability of some of these companies . Paul i think it depends on how the Exchange Rate moves relative what the further news is around cabinet positions in south africa if gordhan goes, it doesnt help. I am more handsoff with anglo if gordhan goes . To be. Think it has it speaks to a lack of stability in south africa. That said, there is always a lot of news around the election cycle with the anc, always a lot of hot air flowing around that. But moves like this are pretty significant events. Matt mark, are there a lot of moves left in these assets . Is there a long way for the rant to weaken considering the strength you have seen over the last 13 months . Mark i have to say i do think there is. Particularly if gordhan is removed. There is definitely a lot of more price action to come in the rand. You will see volatility in the rand and other assets in south africa. Removed, you not have raised the risk premium around South African assets and that she changed some of the pricing. That would be choppy and not one way. We need to watch what happens with gordhan and if he is removed, definitely. Mark how would the south African Central Bank react . You have seen the story in the market as picking that up, but now it is beginning to reverse that trade. If you are the central bank and trying to manage this story, you thea sharp spike, maybe central bank doesnt like . Mark a good question because they are meeting this thursday. One thing i dont expect is to change rates. One of the dynamics of the currency was that core inflation has dropped so rapidly. Most recent print was at 5. 2 , but it seemed inflation was under control. There is a worried about the currency may be they might air on being two dovish this thursday. That has narrowed the window. They are not going to sound too dovish and have been reminded that the currency risk a climbs the stairs and falls down the escalator. Paul, i am thinking about my commodities book and figure out how i traded. The futures are very important for me, but also stock looking around the world at the moment and seeing all the noise and the commodities. Where is my best bang for my buck . Paul i preferred to be focused on the base metals and commodity than the commodities. I think they tend to show better valuations. Commodities that i think are trading towards the bottom end of the range rather than the top and. It is situation where we are worried about some of that pressure coming off, there is less room to fall there and that is more a defensive play, particularly given the situation that you can start looking at it as a much this less risky way than we were 12 to 18 months ago. Matt paul, thanks a lot. Great to get your take on this. Thank markt to cudmore from an life and show you on my screen, which i look at every morning and so do many Market Participants i always click on this chevron and pull out a cheat sheet for market action. If you hit the side of the ml can get a quick recap that is useful. We are minutes from the open and i want to get to your stocks to watch. Check out shares in ericsson this morning and check out. Hares at tesco as well first off, ericsson seems up to 1. 7 billion in costs as a revamp begins. Ericsson putting out some numbers that may move the market or move its shares in the market this morning. Guy, you are watching tesco . Plenty of stocks to watch, keep an eye on the miners as well. What is happening in south africa right now plus, the sea new ceo at bali. We are looking at a gloomy day. Four minutes to go. Guy one minute to the cash open. Lets talk about the futures. The fair value cap collations point to a positive rebound following yesterdays selloff. That is what we were dealing with and the u. S. Markets stabilized up into the close. As result, that is what we are pricing this morning. Looks like a positive start, up by one third and half of 1 . In terms of the market open. Maybe the dax firmer, matt. Matt i am looking at eurozone stocks. If you look at in close to the , you can see investors europeanoney into stocks right now. The most since they have the week after brexit. This is especially important to look at the day before. Theresa may sends out the letter to trigger article 50 , so investors look like they are getting ready and positioned by putting money into this euro area etf. The most money since the week of brexit. Guy as we can see, the market is opening. Surge. We get a positive we are waiting for them london market to give us the numbers. At the moment, we are looking at a picture where we are trying to see the auction and the markets position off the back of that. 0 seconds into trading now i slightly worry about that number on the bottom of the screen. It looks like denmark its are coming up markets are coming up a little bit. Lets get details with manus cranny. Manus just closing down his iv. You dont know you dont want to know what is in the ib chat. There is always a little risk, what could be the reward . Shanghai composite down for tenths of 1 . Is arestion in china they getting more stability . That is one of the moves this morning. Just under 24 hours away from article 50 being triggered and the start of brexit. How confident are we . Brexit and how blissful are we . It is based on inflation, employment growth and uncertainty. On the 23rd, the 24th