Caroline at incwe want to get perspective, tom. We want to get the idea that this extraordinary Volatility Oil prices, stocks following eike a lost puppy will we se what is happening in the markets reflect on the overall economy . The eu cutting growth figures for gdp that is a market d circumstance. Tom im bringing in vonnie quinn before she does the news. It really shows the growth tension. Vonnie and the inflation forecast, cut by half. That is a huge move. Also assuming brent crude at 35. 80 per barrel, down from 42. 50 per barrel. Tom and this set that up perfectly this morning. We will look at the bank of england, announcements coming out, and David Rosenberg will join us in the next hour. He is adamant that deflation fears are overdone. Right now we need to check up with the news. Vonnie the euro strengthening. Days after they began the syrian peace talks, geneva has been suspended. Againste major progress rebel held areas, backed by russian airstrikes. Says syria talks will resume in three weeks. Meanwhile, David Cameron has plans for todays a summit in london. He will continue his push to renegotiate the uks membership in the european union. He is taking support for a draft compromise from the European Commission president. Julian assange may surrender tomorrow, after being holed up in Ecuadors Embassy in london for more than three years. He says he will surrender if the United Nations panel says he has not been arbitrarily detained. He wants to avoid extradition to sweden. He fears it could lead to standing trial in the u. S. For leaking classified documents. Hillary clinton and Bernie Sanders tried to establish with progressives last night. They appeared separately at a town hall meeting in New Hampshire, six days before the primary. Sanders says clinton is closer to a moderate than a progressive. Clinton defended herself, saying she is a progressive who likes to get things done. Polls show sanders leaving in New Hampshire. The state of florida has declared a Health Emergency in four counties over the zika virus. Nine cases have been detected in florida. Emergency order allows the state Agriculture Department to use mosquito spray more in those areas. S 24 hours a day in 150 bureaus around the world. Tom the eu has some substantial reports on other nations 6. 5 . At si all of that is off the challenges we have seen in hydrocarbon. Equities, bonds, currencies, commodities. Another good day. Yields are in. Aro elevated this morning, breakout valuation. On the next screen. The vix coming in, german twoyear with that 0. 50 yield. Really focus on the yen 117. 72. Caroline. Caroline lets check out on the stoxx 600. Put this in perspective we lost 950 billion euros from the initial valuation. So far this year we are making up some of those losses. And thatde up 1. 2 , rebound is continuing. Ahead of super thursday, the pound is trading stronger. We are seeing that little bit of liftoff in anticipation. Will we see a more hawkish note . Tom lets go to the bloomberg terminal. Instead of Francine Lacqua this is not a normal bank report. This is Credit Suisse, back three decades, with the advent flows of the great swiss bank. Here is the total failure of the recent business plan, and the new leg down to 1982 valuations. 1992 valuations. That sets up the drama in zurich. I saw wells fargo coming out we will show that later denied the report that they were interested in parts of this beleaguered bank. Francine yeah. Its not funny, but lets put it in perspective. Credit suisse says they had a huge loss. Every Single Division is a little worse than expected in pretax. Its the Investment Bank people are worried about, so there are questions did the ceo do enough . The strategy that he presented in october may not go far enough, and a lot of investors are saying they may not be there target. This is something that he he says they will meet their target goals, despite the very volatile environment. No question. Global markets and Investment Banking they are the ones we control the least. Of commentary on the fed that i did not give a profit target. That was because we are volatile. Saying he did not want to give up targets because he wants to keep the Investment Bank, and he wants to be able to move things around. I also asked him about bonuses. 11 overall, 30 in the Investment Bank. Policies. Also made it is a tough cocktail francine by how much . And forotal was 11 , the divisions that are underperforming, by more than 30 . Tom, when i say lets keep things in perspective, yes, it wasnt a good Earnings Report it was pretty terrible. Analysts are saying they may do some kitchen sinking. Hes remaining optimistic. He says he will accelerate with everything, but they may not trust him after all. In his previouseo life. Tom i featured in the opening the idea of trading losses. Was this about the weakness across all sectors, or was it bined with a lousy trading performance . Tom. Ine it was both, when you look at the Investment Bank of Credit Suisse, he tried to realign it, didnt restructure it far enough. When you look at the turmoil that they had in income, this was a very tricky environment. Analysts agree that this is not geared to do this kind of thing and deal with this kind of volatility. I know you are mentioning wells fargo he wants to just give part of the Investment Bank away, and certainly that is what some investors are hoping, that he seems to say look, i need this bank, because that is how i track clients in asia. Vonnie frenzy, give us a francine, give us a sense of your speaking with him. Theres words saying you should have preannounced this, the loss is so huge. Whether get a sense of he felt he should have said this earlier than the day of reckoning . Is difficult to say. I certainly didnt ask him. He said this is what we reported, this is earnings. He also took a lot of provisions for things that could go bad in the future. I saw a call of saying, look, you should have preannounced this. It goes back to the point that analyst investors, a lot of people i have been speaking to, just want to know about what kind of person this new ceo is. Nine months into the job and theyre still trying to figure out how he sees the world and how he sees Credit Suisse. Caroline a picture being painted similar to ubs. Great to have you with us, and thank you very much, bearing the cold in switzerland. A fantastic interview with the ceo of Credit Suisse. Lets bring in our guest for the area, Jupiter Asset manager. Thank you for joining us. Give us a sense you are swiss. You know what it is like, you know the bank well. When you came on with Deutsche Bank before, you said they are underperforming. When you look at Credit Suisse, trading at its worst since 1992, should they have preannounced this . We know what the requirements are in this regard, but i think perhaps the environment is a bit weaker than we thought. The kitchen sinking elements may come into play here, when you look at the magnitude of the miss this morning. I cant really answer your question on whether they should have preannounced, but obviously it is not a good day for swiss banks. Tom when you look at the swiss banks and the makeup, i interested in the politics involved. The Swiss National bank, the swiss regulators, and adversaries of Credit Suisse, the tough decisions to be made are they in the same bed . Think, if i understand your managementhe at a level, i think there is some doubt on whether they want to keep the Investment Bank or not, whether they can still generate capital for the foreseeable future. Unfortunately, the market is telling us that things will be more difficult Going Forward, and perhaps with the volatility that we are seeing so far this year, it will probably push the management of Credit Suisse to take a more drastic decision regarding the Investment Bank. Tom lets go from zurich to london. Break in with an observation and question, caroline. Caroline one of the things that struck me this morning is the fact that he is optimistic. He says this means that they will accelerate restructuring. Is the market not seeing this if you are an investor, and im not sure im not sure it will make this target. Im just going to switch my money to ubs. Yes. I didnt get the end of your question, sorry. Francine the question if you are an investor and you look at this report, would you just think, im going to just jump into ubs, because i understand the strategy better . Its difficult to say here. Problem is that we withoing into a new year some volatility. 5, one cannot believe the targets for the next three years set by the management, with the help of Investment Banks. Now that were already seeing quite a difficult january, and the market down we have seen in a highyield markets as we close the fourth quarter, the contribution for Investment Banking going into the second half of 2016 is obviously in doubt, and that is what investors are telling us with the share price fall. Caroline a great day to have a swiss man in the office with us to be discussing the fallout that is Credit Suisse. We will look at the decisions they have to make. Coming up next, we will be theing ahead to speaking to ceo of daimler, about Global Growth concerns. How much the slowdown in china is hitting his business. Stay with us. Tom good morning, everyone. Bloomberg surveillance. David rosenberg in the next hour. Bank of england coming up today. And we are looking with Francine Lacqua in zurich about the debacle of Credit Suisse, the shocking report this morning. Right now, a shocking business flash with vonnie quinn. Vonnie thanks. Daimler is forecasting only slight gains in revenue and profit after a record performance in 2015. The company sees Slower Growth in two of its biggest markets, china and the u. S. Olvingr big recall inv takata airbags. Oyota is recalling millions of vehicles because they can explode. So far, 24 million vehicles have been recalled. The European Commission has cut the growth forecast this year, predicting the economy will grow 1. 8 , down 1 10 of a percentage point. Plus, economists warn that inflation woul will be much lower than expected. Pretty big drop down from 1 , caroline. Caroline indeed. Phenomenal moves across the market this morning, and still with us is the Jupiter Asset manager. We discussed Credit Suisse and the debacle there, the lets talk about the market. Oil continuing to be the lead here, and the market following. Today we have central bankers in action. We have the u. K. , the likes of the government and the bank of england, discussing how much the volatility in the market is spilling into the economy. Are we about to see an Economic Impact . Are think the Central Banks obviously fighting each other to a certain extent behindthescenes. They are trying to bring the currency down to be more competitive, and that will continue. We saw japans latest moves in negative rates. The oil price is a problem of oversupply. Once the supply is clear, the reason behind this weakness we could see some rebound. But obviously, the deflationary pressures are there. Caroline i want to bring up the fact that you mentioned the bank of japan. We have already seen negative Interest Rates this affecting the japanese yen. We have erased all the weakness there is a great note on the bloomberg terminal today. Theyre trying to paint the picture that the currency wars can be nasty and dont always have a winner when they are waged with increasingly negative rates, a nuclear option, the evil of one. Are of these currency wars failing to work . Quite clearly the yen is no stronger than it was before friday. Japan is bizarre. Negative rates are fine there. Thats pushing the bank to do something with the excess capital. But there is no demand for loans. What are they going to do with it . They need to move it around, jgbs or realmore estate. Its the same kind of plan that other Central Banks have when they announced negative rates, especially in europe. If we went into negative rates, it would be slow growth, because there is demand for. It would be cheaper for corporates to borrow, and second have a positive impact. Japan is still relatively perplexed on the endgame there. Tom guy de blonay. Hour, David Rosenberg with the shift on inflation. A yearandahalf ago, he reaffirmed the inflation. Not a clear and present danger, but the inflation we are living with. From london, from new york, stay with us. Tom good morning, everyone. Caroline hyde in london, either in new york. Im in new york. 99. 24 percent is looking north to New Hampshire. Now, the morning mustread. Vonnie i thought we on the job before friday we are looking at boe today and the whole week is full of stuff. One writer says that although the markets have been conditioned to expect repeated liquidity, what they need is saysmentals that he that the labor market needs three areas of strengths and gain 150,000 jobs are more. and it would also send part of the anger on that political trail is a lot of people are not enjoying the economy. Vonnie and the subcomponent and services was lower, still an expansion territory, but there are some signs tom can i give a shout out for his new book . Author of the only game in town. Its actually in english. It. Got game theory in vonnie very readable. Under 400 pages. Tom we need a fight that a change in our analysis of the bank of england. Their operative economic word is delay. Well speak with Deutsche Banks chief United Kingdom economist, George Buckley. Thrilled to have him stop by to see what the house of connie will do. Arney willse of conni do. A comfortable but not breakout bid. Im calving the cranes in london. Caroline hyde is the only one who can afford a house of the United Kingdom. Stay with us. Tom in the apparent quiet, here is what you need to know. Yen, 117. 57. Complete reversal of what we saw from the bank of japan for our five trading days ago. Lets get to the first word with vonnie quinn. Vonnie thank you. The militant group that once sheltered Osama Bin Laden wants to crush the Islamic State in afghanistan, according to its postman. Leaders of the taliban have given up negotiating with the Islamic State and want to prevent it from getting any power. They called to the group a scruffy and uncouth production. In greece, workers are holding a oneday strike agains Alexis TsiprassPension Reforms plan. His proposal called for higher taxes to draw on the pension deficit. Protesters say it will cripple Small Businesses and the selfemployed. In germany, the city of cologne is trying to prevent a repeat of the mass Sexual Assault that happened on new years eve. The fiveday carnival festival begins today. The i taggers were described as north africans and arabs. The refugee crisis is on track for a new record. The German Government says that 91,000 arrived in january, less than the number who came in december, but officials blame that on harsh weather. Yesterday, Angela Merkels can cabinet proposed tougher rules. Another candidate has joined donald trump and accusing ted cruz of cheating to win the iowa caucus. And cruz were both competing for evangelical voters. Global news, 24 hours per day. Caroline . Caroline thank you. Of course, lest we forget, it is super thursday. The bank of england will have the right decision and the inflationary report. For more, we will dig into it with Deutsche Banks u. K. Economist, and still with us is the jeupiter asset fund manager. You are a phd holder in economics. Talk to us about the economic ramifications of what we are seeing in the market. Low oil price, concerns about market. How much will be here from the Monetary Policy committee about the effect of this on the u. K. Economy . I think mr. Carney and his team will sound very dovish when they give that press conference. The only thing we have to bear in mind is what does the fallen oil prices relative to the last Inflation Report . What does the market report, the fall in sterling . Not over the next year we know that will be revised down but what does it do to inflation forecast two years ahead in three years ahead . That really gives the signal to the markets as to whether they believe the current profile for Interest Ra