Good morning, everybody. You are watching the pulse. Francine a big move at the top of a major bank. Credit suisse has named a new ceo. Guy hans nichols joins us from berlin. It is an interesting choice. Why do you think him . Hans you probably have to go with share price. Credit suisse is down 18 on the year. In terms of strategy, they may want an entirely new look, a fresh take on what is happening at Credit Suisse. Brady dougan had a reform process, but it was implemented fairly slowly. He was the last man standing but it was not yielding results. There were questions about how much litigation costs there would be. He did settle the claim about tax evasion. But there are other claims out there. How are you going to settle them . The new ceo has a close relationship with jack lew. Having a Good Relationship with washington may be something the shareholders wanted. They may have just looked at the share price of their Respective Companies and thought, we need a change, here is a strong leader. We have had an american lead the bank now for a frenchman. Francine [laughter] im sure thats exactly what they were thinking. Guy time for a frenchman. [laughter] hans you look at how long brady dougan stayed there. He was the only ceo who went through the financial crisis european crisis, litigation challenges. He never really solved the issue about what to do with fixed income commodities, and currency trading. He paired it down, but he did not double down or reinvest the way Deutsche Bank did. Every quarter, it seems like we see negative numbers or numbers that disappoint from that sector and he still has a big footprint. If Credit Suisse continues to function as a traditional Investment Bank that is going to stay the same. His legacy may not be easily determined. Guy we are moving across the square to ubs and look at what happened there. Youve got to see the results they generated in terms of share price. The model does not seem that complicated. Hans true. But eventually if you are going to take the brady dougan view of the world eventually that is going to come back. There will be a couple of big players and they are going to have good quarters. It is a debate of timing and strategy. Right now, it looks like brady dougan is on the wrong side of that trade. But his strategy may prove to be more longterm viable for the swiss bank. Francine the very latest on prudential and credit sius Credit Suisse. Guy we will get the news about prudential a little bit later on. In the meantime we want to show you the big move we have seen in the currency markets. The single currency is very much under pressure. You continue to see the tightening up in the credit spread story. The german 10 year is continuing its journey to the zero bound. Eurodollar 1. 0756. Francine incredible. The great finance minister will go into talks with creditors in brussels greek finance minister will go into talks with creditors in brussels today. The eurogroup is putting pressure on the country to open its books before the credit is released. Guy now to brazil. More than 10,000 cash confiscated is apparently missing. A judge was caught driving one of the former billionaires cars. Where is the money . Francine i love that story. It just keeps on giving. Apple unveiled its first new device in five years. The smart watch. The starting price is 350. The company also released its macbook which weighs 900 grams. Guy that brings us to our twitter question of the day. It is about the apple watch. Would you buy one . More importantly, why would you buy one . Francine would you buy the first version . Im thinking i will eventually buy one. Guy it is pretty big. Tweet us. We are back in a couple of minutes. Francine welcome back to the pulse. Guy lets get back to our top story. Credit suisses appointment of Tidjane Thiam. What does this say about css future in Investment Banking . Some people are surprised. Others are surprised that it is him, but less surprised that it is a nonInvestment Banker. I am not surprised it is a nonInvestment Banker. The swiss government and regulators will focus on appointing those who are not in Investment Banking. I think that this is an innovative appointment because he knows asia, which is vitally important to a wellbalanced business. He knows government and how politicians work. Credit suisse is a big provider of services to government. The market is relatively impressed by the appointment. Francine is this justified . Brady dougan did not get it all wrong. Chris he is a thoroughly decent man. A great reputation of working hard and has done some very good things, especially with capital. He was unfortunate in saying, we dont have the kind of tax problems ubs has. Nevertheless, it was embarrassing. He was criticized in 2009 for not being more aggressive in Investment Banking. Suddenly, he is being criticized for not pulling back quickly enough. It shows you how quickly markets change. Guy is it simple . Chris people keep saying to me make it look like ubs. Ubs was smart in stepping back from fixed income. Credit suisse have a really strong credit franchise, leveraged lending, emerging markets activity. Brady dougan was key to try to push that through. However, they will have to step back from certain businesses. They were not big and some of the more in some of the more tough issues. He will say, lets really focus on return on equity. Francine and also asia. Is it for the ultra High Net Worth individuals . Chris if you are not growing in asia you are not growing and Wealth Management. The growth in europe and elsewhere is not very strong. That is where all the new millionaires are appearing. The Investment Banks with Wealth Managers have an advantage. From that perspective, they have a tremendous advantage. They must grow in asia if they are going to continue to be a leader in Wealth Management. Guy what does Credit Suisse look like in five years . Chris it will have a strong Wealth Management business with an asset manager alongside it, a strong domestic banking business. Whenever i run my numbers of the top nine banks in the world banks in the world and look at equity revenues that they post every quarter, Credit Suisse is always in the top three, normally after Goldman Sachs and morgan stanley. Fixed income will be more and brady dougan had set them on that path. Francine we are not going to see some kind of big movement or job cuts or reorganization in the First Six Months of Tidjane Thiam . Chris im sure they will be some reorganization. No ceo comes in without things they think they can do better. Of course there will be change but i dont see wholesale change. I think it will be finetuning what brady dougan has left behind. Over 15 return on equity will be a target and the ability to return a lot of capital in the future to investors for buybacks and dividends. Guy do you have a buy rating attached to it now . Does he have a buy rating attached . Chris you see the markets this morning. It does feel like it. Tidjane thiam was a very smart move by the Credit Suisse board. It is not what people expected, but he can tick so many boxes and take this impressive brand name forward. Francine what is in it for Tidjane Thiam . A challenge . Why would you accept it if you were him . Chris it is a great company. I think Credit Suisse has a bigger place on the world stage because it has a broader business. It is based in switzerland. It gives them a chance to make an even bigger mark on the Financial Services industry than he has done before. Guy i am trying to relate those two things . He is going to make it bigger mark and not change much that brady dougan has done. Chris youve got carried away with everything that has happened since the crisis. I think there are some great franchises in Credit Suisse and they are going to keep building. Francine the share price is up 7 . Someone out there is going to expect some kind of huge radel shake rattle shake. Chris they are not strong enough, they are not big enough in a business with a Capital Requirements went up to the highest. Lets get on with getting rid of the remaining Legacy Assets and lets make the most of it. A wealth manager on the scale of that, swiss banks never talk about the return on equity. These businesses make 40 return on equity. It is making sure that becomes more visible. We could jump back to jamie dimons problem about giving more visibility to Consumer Banking and asset management. I still think these guys will say, we have some strong businesses. Guy what is the swiss regulator going to say to Tidjane Thiam . Chris dont mess up is the most important thing. [laughter] they want to play out what switzerland has in terms of banking and asset management. Investment banking is a very interesting business and very important for the country, but caution must be the watchword. They dont want to go down the road they went. Guy there are some huge risks, though. Francine the First Six Months. At the time, they said, it is but important it is important to take risks in the First Six Months. Chris Credit Suisse has gone through the most important change since the crisis. I think you are making a mistake if you come in and shake it up immediately. I think what you should do is come in and sharpen the returns the bank makes. This becomes a cash cow. It becomes a dividend stock. It becomes an income stock pushing money back to shareholders. That is what people want to see. There were a lot of banks around the world like that, they are not alone in that. Guy it is a prize asset. Chris the big focus for the u. S. Banks is how much will they be able to return to dividends and capital . Francine thank you so much for your time, chris wheeler. Lets go back to last year when i was joined by Tidjane Thiam for the leaders lunch. We asked him where he thought he would be five years from then. Tidjane thiam i dont know. I lost my faith in the ability to predict things a long time ago. [indiscernible] i have become a bit philosophical. I hope to be surrounded by people whose company i enjoy and who i am happy to see every day. It is as simple as that. Francine welcome back. Time for a check on the top stories. Guy u. K. Lawmakers told hsbcs top banker that he is incompetent. Hsbcs chief executive defended his personal tax arrangement. My inability to convince anyone that these were not tax evasions caused cap reputation damage to the bank. Francine investigations into sanction violations on commerzbank. Guy there has never been a better time to be born female. Even the women still do not enjoy the Economic Opportunities that men do. That is according to the bill and Melinda Gates foundation. There is still a lot of work to do on womens issues. Melinda gates i dont think we are there yet in terms of really empowering women. It is all types of work. Until we have far more women as ceos and far more women in congress in all of those different ways, i dont think we are even close to where we need to be. Francine it depends very much on where you are born as a woman. Euro area finance ministers are piling the pressure on greece. Theyre questioning great commitments greek commitments on delivering. Guy last night, the ministers were gathering. They did not just talk about greece, but they did talk about greece. What did they say . There was a lot of drama with greece. A lot of pressure applied by the eu finance ministers. There was not much concrete progress in brussels. They agreed to start the technical discussions on the greek reform by wednesday in brussels. Whether greece can receive the next 7 billion euros that they are scheduled to receive as soon as this month. The question on everybodys lips was whether greece could run out of cash very soon. I put that question to the eurogroup head after the meeting. I dont know if and when they run out of cash because i dont control athens. That is their responsibility. All i know is that we can probably release further loans from the european funds if there is a full agreement on the total package and if they start implementing reforms. So far, two weeks of gone by and neither of the two have happened. At the moment, they are still on the rhone, but we stand ready to work with them, hopefully starting on wednesday. The eurogroup said that greece has wasted the last two weeks, but the deal last night was pretty quick, based on a discussion between mario draghi and the greek finance minister. Mario draghi asked him, can we start the technical discussions . The greek finance minister nodded. Mario draghi said, when wednesday . And the deal was done. Francine how did they react . It is going to be a difficult sell back home in greece. It is going to be very hard. The greek finance minister said that no time has been wasted for greece in the past two weeks that it was a matter of implementing more reforms for greece. There was a big misunderstanding, he said, with the press and what he presented on friday was just the first batch of reforms. Back to you. Francine thank you. Stay with us. We speak about germany and their take on what is going on in brussels. Francine welcome back to the pulse. Live from london. Guy good morning, everybody. Francine Credit Suisse has named a new chief executive officer. Tidjane thiam will replace brady dougan. Guy greece is resuming talks with its creditors in brussels today, alongside technical talks in athens. They are trying to avoid running out of cash as soon as this month, as European Finance ministers are putting pressure on the government to open up its books. Francine apple has unveiled their smart watch, the first new gadget in five years. It will cost 350. They have also released a macbook computer weighing just 900 grams. Guy the apple watch is now fully functioning. Bloomberg got a handson look. The apple watch is finally here, again. This time, it actually works. Unlike the demo models we saw six months ago, the watch is fully functioning. It comes in this 42 millimeter size and a smaller 35mm size. You give up a lot of Screen Real Estate for that comfort. It can differentiate between a kick desk quick touch and a more deliberate cap. Quick touch and a more deliberate tap. It can differentiate between a it can track health, fitness, and sleep. It does not have gps or cellular connectivity. There is no word yet about onboard storage for things like photos. Battery life will be 18 hours. The screen goes dark when you are not doing anything and turns back on when you raise your wrist. This should match well with the battery life for the iphone and is on par with other devices on the market. The price will be 10,000 for the solid gold apple watch edition. The presale will begin on april 10. Delivery on april 24. Francine i kind of like it. I have not seen one. So i dont know. Nate langston was at the launch in berlin yesterday. I heard it is a little bit heavy. Is that right . I think we have technical issues. I was really looking forward to hearing from nate. I heard that first of all, you have the normal version of 349. You can get the same watch at 10,000 and it is solid gold. Guy it is not enough to justify that spread, not enough gold. The intrinsic value, you dont get a lot of gold for that. Francine at the same time, i did hear by going through the internet that it is a little bit heavy. If it is heavy, this is our twitter question of the day. Would you buy the apple watch . Why would you buy it now . If you look at the various versions of the iphone, it gets better and better. I would imagine, although i am not a techie, that this would get lighter and lighter. Guy you would imagine so. I remember my first ipod was quite clunky. Now you dont even buy one because you have your iphone. Nate links in his back. Nate linksangson is back. Nate it is a lot lighter than the product may actually look. I got to try the 18 karat gold edition. In my hands, it looks like a luxurious watch. I am not a perfect judge of how good it is on the wrist but it certainly feels very, very nice. Francine what was it like . There was much excitement. What was it like being there . Nate in many ways, it was a fairly Standard Apple event. Everyone sees the keynote and then goes around the back and gets a couple of hours of handson time with the products. There were certainly fewer people there been previous events and that was apples way of giving people there a longer experience with trying to get the device to fit properly. They are putting quite an emphasis on making sure that the devices are being fitted to people correctly in the store. That is something we see a lot and watch outlets. That is something that apple wants to give plenty of time to at the event. Other than that, it is fairly Standard Apple. Guy look and feel. You like the look and feel. What about what it does. Functionality. Talk me through that. Nate the functionality is twofold. On the one hand, it is an extension of the iphone. It will bring any notifications that come into the iphone on the screen. Notifications, instagram, anything like that. It is one of the first products that apple has a really square focus on health, fitness tracking something that is going to try to keep you motivated throughout the day. As someone who sits at a desk in an office, it might be nice to have a device that vibrates when you have been sitting down to long. Whether that is a game changer or not i have to wait and see until i hav