Ulse. If they are having to cut Global Demand for the first time in five months. Overall, the ink the price of oil will rise. They are seeing a nonopec output estimate. The chunk of global out of its that opec does not control but would like to see cut may actually be cut. That is good news. It is anyone within the opec complex but they have been cut by the iea. These guys want to see it handinhand with them as we try to manage the markets. We can see what is happening here. We are up over 1 as you can see. Switching directions. Yesterday confused them. Some interesting headlines coming out of the iea. The Swiss National market to raise the cap on the swiss rank. It is surging as much as 41 yesterday. Lets figure out what is happening here. Hans nichols is in zurich. I guess the morning after the night before. The morning after there are two questions dominating the conversation. What does this do to the swiss economy . The middle companies have a high labor costs. They still pay in swiss francs. They are exporting. They would get 56 of x ports. The second is bank exposure. We saw the online trading platform. They have had to set aside 25 million provisions. We sell Global Traders saying they were going to have a hard time and would have to shut their doors. It gets down to the decision i the Swiss National bank. It was too difficult to defend. We have a screen that shows you what we have in terms of holdings of the Swiss National bank. A big increase we talk about defending it. Then it is basically fat what. The question is how much more six and says is a getting to be too defend that pay . Is it more of a parameter and move and they did not want to spend more . We are having technical difficulties. Im not sure what our audience is seeking but we are experiencing a few technical difficulties out of zurich. We will go back to hans in a few minutes. The frank is soaring. Let us talk now to our big test of this morning. It is an exclusive interview. Thank you so much for joining us. This was a surprise to all of the world. It sent shockwaves across all of the Foreign Exchange markets. How is your bank dealing with it . It is a surprise with the methodology be swiss it used. The swiss franc was under attack was kind of obvious. I think the big bang bang in favor of the swiss franc was a safe bet. Nobody would ever think that the swiss franc would devalue. It was simply a question of time. The swiss franc is against the europe. Particularly when the euro was weighed against the dollar. Can i ask you what kind of feedback you have from clients . What are people telling you about how this changes their view of putting their money in switzerland and maybe taking a step back . The main concept is on the swiss exporters which are suffering a lot because especially in europe. The swiss economy is becoming less competitive in europe terms. As far as the european choices in terms of which currency to keep their savings, the swiss franc has always been a fairly choice. The euro is waiting. It means a more swiss francs will be in the Bank Deposits of the european favors. Im slightly curious about the mediumterm outlook which is what i shouldve list and on the question. This kind of volatility doesnt scream this is a safe haven. The volatility was quite extreme. Im wondering in the more mediumterm if this degrades switzerland as a safe haven . You are right. This was a surprise. A huge volatility even if the volumes have been extremely low. Volatility yes but volume essentially nonexistent. You are right. This certainly does not have the swiss franc. Do you think it is still considered that switzerland is considered a safe haven . We were trying to figure out the impact of other safe havens. Does it still represents a good value . Yes. I think it will remain a safe haven. It deals after a hundred years of credibility does not disappear in one day. To think there are other places to park their money. A lot people gave it to singapore. Do you think this will stop the flow or it will mean that people will look to other options around the world . People are always looking at other options. Especially the volatility we did not have. At the end of the day, switzerland remains a very safe haven for most investors all over the world. Does it have an impact on your bank . What advice are you giveing to clients . I know it is an investment but theres nothing you again as advise . No, really. We are an advisory bank. This movement in currency does not really change. Give us a sense of, of course youre one of the most famous majors Major Oil Producers in the world. What you think it is right now . This is a good question. In my view prices will remain low for a long time, lose 18 or 24 months. They might even go lower than that. Simply because demand is weak. This is the concept and the u. S. The new production in iraq is growing. Saudi arabia did not want to take the charge of reducing projection production to find a connection between demand and offer. This would mean big quantities are involved. We continue to flow in the market, driving prices round. I am not expect any good news for Oil Producers anytime soon. This is very good news for the economy of europe. Also at the end of the day for the u. S. Economy. Can i ask you to wear two hats at the same time . You have Excellent Knowledge of the energy sector. And the advisory had you are wearing at rothschild. I wonder how much him in a you are expect toing to rise in the energy sec and are in result of the moves we are seeing . If you are talking about oil and gas i am expecting very little action for the next two months. The market is still surprised by this quick drop in oil prices. After a few months if prices continue to be as low as they are today, they will be bound in activity as an terms of mergers, exchange of assets simply at this level of price Oil Companies need restructuring. How Many Companies will be have left at the end of this . If you are looking at the landscape now, what kind of divergence and m a are we foreseen . I believe that every company which has been relying upon debt in order to make investments in the oil for will need one way or the other to refinance with these oil prices, or to literally if they stay as low as they are today for the next 1824 months. We will lead it through a freezing of activity in terms of m a for the next threesix months. Then everyone will drop the impact on their Balance Sheets of oil prices. One final question to take us back to the beginning of the club conversation and the swiss franc do things was companies will now use the extra firepower they expect to have to make acquisitions around the world . If you are trying to head yourself to deal with the high swiss franc is the most obvious way to do that to make acquisitions around the world . Do you think you will be out there making advisory touches on that basis . Is that the most logical progression . I think so. I think you are right. This was companies will be pushed to become even more international than what they are today. In order to do that, if they can use the swiss franc and to make acquisitions in countries which have a currency weaker than the swiss franc. This is what is going to happen. What does this mean for qe in europe next thursday . What does it mean . Listen, i think quantitative easing in terms of this is something that will happen in the next week. There has been strong signals in the direction that would ease the price if it did not happen. Thank you so much mr. Paolo scaroni deputy chairman at ross child. The pulse coming up, john cox will talk about the impact on the markets of the essence be. Pulled the rug out from that currency for. The bigger picture, the worlds online profile for images. We will talk to shutterfly in a bloomberg exclusive. Welcome back to bloomberg. Como the pulse. Yesterday we saw a major global currency offing around in a 30 band. Spectacular. Has the snb lost credibility . Lets take you straight to europe. Hans mikell has been standing by with a very special guest looking at the fallout from the exchange rate. Hans . Good morning. I am joined by the head of swiss equities, john cox. Thank you very much for joining us. We look at what is happening at the currencies, stocks were down but not as much as the currency. So some good value in swiss stocks . The currencies were down 15 against the swiss francs. Most of these Big InternationalSwiss Companies to not have any swiss sales to speak up. Stocks should have been down 15 . That is a very easy translation for these guys. Lindsay s stocks were not down 50 . At the house we see further pressure on earnings estimates. You will see further pressure on the swiss market. This morning already we are underperforming again. This will last for a few days. Only get the next Earnings Report we look at a sense of how much of the downward pressure this has had. Probably the companies will initially say we have seen the translation. It is probably a bit of a pressure. They will downplay it to a certain bit. They do not know what the repercussions will be. I am sure none of them had to. Everyone thought this would last. They are on the hedge. They are naked out there. I think the impacta has to be worse. Analysts are saying 15 . They are underestimating. They have a fake swiss franc big swiss franc cost space. It will dent your margin and estimates. Give me an estimate. Between 20 and 25 declined an estimate for msmi stocks. We saw some yesterday down 8 or 9 . Estimates their need to come down 15 or 20 . It is a free lunch for some of the International Investors yesterday. I know some britain and European Fund manager saying this is great. The swiss franc is up 15 but nestle is only down 6 . That free launch will not continue. We are in the shadows of the Swiss National bank. Did they miss by . Do they expect us to happen . I imagine these Swiss National bank is the least popular in switzerland as far as the business and political elite. The move we saw yesterday the euro and dollar down 40 against the swiss franc probably took them by surprise. Lets see what happens next. It is not a popular institution. We saw a lot of his leaders, and say this is a disaster for corporate switzerland in the economy. I think you mentioned earlier there is danger of it dipping into a recession. All of that comes to the Swiss National bank store. On the flipside, on the right instance there will were a lot of people questioning why the bank was intervening. That pressure was building as well as the qe. That probably triggered this whole sobriety move. Is there anything the bank can do to rectify this . Julie have any credibility . What can they do . There were rumors about potentially the pay going to 1. 1. Its morning it was 1. 0. That is 10 lower. I think they will wait a few days and weeks to see what happens and they will probably do a messy float. I think they will be intervening and keeping an eye on the situation with the ecb in any easing. They may be pulling support over the onetoone versus the euro. That is still down some 20 from where we were sort of yesterday morning first thing. I think onetoone is probably where the Swiss National bank will hope to defend the level with a dirty float in the future. Mr. Cox, thank you very much. Francine we will send it back to you. This was equities will be done a great deal more at a potential recession around the corner for everyone here in zurich and across the country. Hans, thank you so much. Lets delve deeper into one of the sectors john cox was just talking about. The swiss farmer sector. Lubricant diligence joins us now to talk about that. A Bloomberg Intelligence joins us now to talk about that. Do we need to be even more nuanced than that . How do we make this work in terms of the actual numbers . Verse to prove him absolutely right. In the time we spoke as morning it worked out that some of the numbers for half these numbers. This is not 7 . It is 14 . That is a much bigger number. That is exactly right. You need to make sure you get the best numbers. They have what this could be viewed as a national hedge. They report everything in u. S. Dollars. This will be an impact on them. They gave an impact yesterday from point five to 4 billion impact on operating profit. They just said that that is based on the swiss bring to u. S. Dollar. I do not know if it will have to be refined. It certainly has to only get there. They will get an opportunity to look at other currencies and what that means for them. They will put those on u. S. Dollars. The impact will be close to what they said. For us we are talking about a big number because everything is in swiss francs. What we now need to work out is what has this done to valuations . What was the valuation yesterday . What is it today in terms of epa . Is it really difficult . You seem to think it is worse off. It seems logical. Then of course, the whole thing ends up being at the end of the day in terms of cash flow and payments and what it means for the nonswiss shareholder. One quick question. Who competes with these guys in the oncology space . Will this affect the top line . It will affect a lot of toppling. I assuming if you are a watcher and you are selling it for 10 pounds niger going to have to charge 11 pounds. Or you take the hit. You cannot really change your pricing. Nothing really will change them. Thank you very much. You can continue reading about the swiss francs. Yesterday the snb was a soon on me. You can catch that story and others at bloomberg. Com popular. Were back after this very short break. Coming up, shutterstock widens its lens an exclusive interview coming up after this very short break. In the meantime he could follow us on twitter. The question we want answered has the swish National Bank lost its credibility . See you in a moment. Welcome back to the pulse. These are the Bloomberg Top headlines. The Belgian Police carried out in antiterror raid killing two suspected terrorists and arresting a nerd. 10 people were arrested in paris overnight and we will be questioned about their connection about the hackers. Police in berlin also carried out in antiterror raids. U. S. Judge has told bp it will face a maximum term of 13 . 7 billion for the gulf of mexico spill in 2010. It was reduced from 18 billion after a ruling that reduce the estimated amount of oil in the spill. This will Begin Next Week here. Ims tour has spoken about has said the oil prices will not be enough to stimulate growth in the year ahead. Despite the boost from oil prices and despite a stronger u. S. Growth we see the Global Recovery can take doing continuing to face a very strong head wind. Christine lingard. We look forward to hearing from her and outposts next week. In davos last week. 700 50 million. Joining us now is john. Thank you for joining us. Give us a sense of what is for these acquisitions. They are big for you. How long have you been looking at them . What has been so enticing . The landscape is changing. For the past three years we have been looking at it for ways we can expand into both the editorial market and commercial music licensing market. We have been building both businesses for some time now. We want to take a step forward and purchased both of them. He gives as much more ahead in the premium market. There have been management buyouts. I am curious who calls who. And you call them . How did it work . With both deals we approach them with a partnership deal. Sometimes along the way in mineta sessions can m a conversations can come up. Wanted to sell it to our big media agency clients. Even our subscription clients around the world. When we started talking further we started to realize how much we can do together. They are experts in getting content out to all the publications they have relationships with. We also have amazing relations with their supplier. This gives as much heavier much more ahead. These costs, the amount you can charge for a celebrity photo is actually huge. Is this what you will be going into . How does it fit with the music category . Were interested in all segments of the market. What we get with rex is sports entertainment, and news. All three areas are important. Which most . It is different from our side and theirs. The entertainment stuff does well with the magazines of that people reading every day, the news photos sell well. I believe it changes the route the year. Were just are doing to get into this market now. How much crossselling is there between what you used to do, what they do and the sound side of things as well . Does it cross politic . They were large media agencies that were also doing stock video. All of hollywood now is using stock via and episodic type series. Millions of people watch it every day. Today you can buy a go pro, put it on a tripod, but in the middle of washington, d. C. , film traffic going by with the sun setting behind the capitol building, accelerated to a time not in use in almost any documentary. If we speak to you in two years, how much money we generate from video . Video is important. I can see it being a quarter of our business in many years down the road. When you look at the Competitive Landscape or the landscape within images, video, sound, audio, we see some interesting things happening. You mentioned go pro. You look at the impact this had on business. How much of this stuff is still to happen in terms of years . I feel we are in the foothills of understanding all of this stuff and the implications of how it all fits together. We need to get your view on the hardware, software, the images and where the maximum point of value is in the advances. It is all about the democratization of content creation. These devices of that the logic built into a go pro, that kind of system just a few years ago wouldve cost tens of thousands of dollars. Today professional lover Recording Capabilities are put into peoples hands for 300. People who did not have a chance to get good at the content are becoming expert content creators. That is why we have the marketplace we have, so we can get people that did not have access to these types of buyers that we h