Probe. They say the u. S. Should cancel the charges. Thailands Army Declares marshall law but stops short of a fullblown coup in a sixmonth crisis that has paralyzed the government. Youre watching worldwide exchange, bringing you Business News from around the globe. Resignation has never been a consideration. Thats the statements from a defiant brady dugan after Credit Suisse has been fined 2. 5 billion after pleading guilty to help u. S. Citizens evade taxes. Its the biggest bank to admit to a criminal charge in more than two decades. Eric holder says the activity has been pervasive. It helped account holders by concealing assets. These secret offshore accounts were held in the names of entities and foundations. And this conspiracy spanned decades. In the case of at least one wholly owned subsidiary, the practice of use iing using this more than a century ago. He was named ceo back in 2007. He didnt oversee most of the wrong doing that occurred much earlier. As of 2007, 2008, Credit Suisse exited the offshore u. S. Banking. No heads will roll. Thats what it means like at first glass. Ceo brady dugan saying that he didnt ponder stepping down and hes very much committed to the swiss bank. I listened into that Conference Call. A couple interesting questions from analysts. Theyre concerned about two things really, first of all about capital. Are there capital levels, which are pretty low, by Industry Standard are they enough to buffer this . Theyre at 9. 3 and Credit Suisse says well be selling more real estate. No problem getting back above that 10 level after which well be paying out a nice dividend, a cash dividend. What does it mean in terms of the reputational impact and interesting comments from the ceo or the cfo rather, he says theres been no Material Impact on the business from the heightened Media Coverage and more importantly, they expect no impact on their banking licenses. Whether its in the uk, u. S. Or in switzerland. For them, theyre hoping after this, once they get the legacy issues out of way, it will be business as usual. That ill with be nice. That would be nice for a change. Thats unusual for a bank anymore. Youre absolutely right. The ceo said on the call, theres been an inflationary rise in the cost of settlements. So the doj, five years ago when they fined ubs that was a third of the fine. But also in part because ubs was willing to hand over client names. Credit suisse didnt want to do that. Thats why u. S. Regulators perceived them as being less cooperative. The doj does not want to appear as being lenient on banks in general. The fines are definitely rising. Its interesting, when do you at what point in any cycle of any investigation do you say well work with you or not. They went early, barclays and it didnt work. Maybe it pays to good early. In that case it didnt, you see. Bob diamond stepped down and nobody else did. Difficult thing. Plenty more to come on that. Our colleagues stateside speak to chris flowers. Theyll talk about the u. S. Mortgage market, European Bank stress test and his outlook for japan, 7 00 a. M. Eastern, 12 00 if youre watching in london. Besides all of that, plenty of other stuff on todays show. Go pro is set for an ipo. Could the daredevils preferred camera of choice bring an adrenaline rush for investors . Well be in new york later when microsoft is rumored to be unveiling its brand new surface model. Well find out the gossip ahead of their big event. World cup or world flop. Brazil may have finished the sao paulo stadium but what could this mean for the country and investors. And finally, are nigerias Security Issues holding the country back . This as the latest Interest Rate decision is announced. Here we are, one hour and five minutes into todays trading session. We had a slight close higher for u. S. Equities last night. We did see buying back of the momentum and biotech stocks and european stocks at the moment are around about 54 in terms of advancers beating decliners at the moment. The ftse yesterday was down some 11 points, down 20 this morning off a third of a percent. The xetra dax and cac current are fairly flat. Ftse mib is up 0. 75 . Vodafone, the shares two stocks, vodafone currently down 3. 7 . Were seeing what the Company Looks like without the benefit of a big chnk income from verizon. Theyre saying core earnings will fall because of the investment costs it needs to make to support the business. Its about where is future growth going to come from. The worlds second biggest mobile operator had a 1. 9 fullyear revenue. The stock here were focusing on, marks and spencer, currently off 2. 5 at the moment. Struggling. The retailer posting its Third Straight profit decline, although 3. 6 drop was better than expected. The food business once again, the star performer in the group with total sales up 4. 2 on the year. Lets recap theationen markets for you as well today. Moving on, the nikkei, up 0. 5 . This is despite the fact we saw the yen at a 3. 5month high against the u. S. Dollar. Its threatening 200 moving day average. U. S. Yields still low, of course, and less chance of bank of japan action and thats just supporting the yen. The nikkei shrugging that off. The hang seng up 0. 5 . Were flat in mumbai. The s p ask up 0. 2 . We have down to 2. 47 , a threemonth low for yields last week. Sorry, a tenmonth low. 2. 5 was the yield yesterday. We rose a little bit on that. Today well be looking at Chain Store Sales, fed minutes coming out again tomorrow. What is interesting is perifial yields. We got pushed lower, so people now wondering whether the spread compression is over. That move has started to turn. There will be expectations of ecb action coming up later. Lets show you where we stand on currency markets as well. Euro dollar at the moment. 1. 3686. Not too far from the twomonth low. The dollar yen, 101. 34 is where we stand at the moment. Thats got some focus. We keep our eyes as well on sterling. Coming up, we have the latest inflation number in around 20 minutes time. Currently at 1. 6843. That was the fiveyear high. People think 1. 70 is very much the height of the current range. Thats where we stand right now as far as currency markets are concerned. Lets turn our attention to whats going on in asia. Thailands army has declared martial law. They say its to keep the peace and is not a coup. Sri jegarajah has filed this report. Reporter we are seeing a negative knee jerk reaction on thai equities, also on the thai bart after the military declared martial law, although they did go to great pains to stress that there is no coup. In fact, the caretaker government is still functioning and it is still working. That seems to be the case. Many are describing this as a slow motion coup. They believe that this is going to be a First Step Towards a fully fledged military takeover. But in the here and now, theres a sense of calm in bangkok. The stock market is functioning properly. There are some in the capital and in the Investment Community who do believe this is a positive development. That the military should mediate in the political crisis and help break the deadlock between the two parties. Effectively put them in a room, throw away the key and get them to sort out their problems, come out with a resolution. The Ratings Agency says this is a positive development, they said it could help in terms of developing a breakthrough in the thai political crisis but there is still room and risk for the blood shed and further political violence. The militarys vomit should help mitigate that to a certain degree. Their role in terms of brokering and acting as a mediator towards the Transitional Government will be key and thats going to be the next step. Back to you now. That was sri with the latest on the reaction in thailand. Still to come, as vodafone said investment costs will hurt 2015 earnings, well have analysts perspective. What is this place . Where are we . This is where we bring together reliably fast internet and the best in entertainment. We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics are necessary. Beam us up. Thats my phone. Hey. [ female announcer ] the x1 entertainment operating system. Only from xfinity. Tv and internet together like never before. Youre watching worldwide exchange. We heard just before the break, the thai army has declared martial law. Though they say this is not a coup. Paul chambers is joining us, analyst from the university. Is this a coup or not. This is a halfway coup. It is a legal operation under the martial law act of 1914 which enables the Army Commander to take power and assume responsibilities for the stability of the country. But hes done so without the formal consent of the Prime Minister. So it is a coup of sorts but its legally acceptable to do what he did. Okay . He did not establish an exact coup like in 2006. When a coup did occur in thailand. The general is using a decree that is part of ty law thai law in the country for all intents and purposes. On the legal side, paul, you just said you needed the permission of the acting Prime Minister which he clearly doesnt have. Wouldnt that then, therefore, make it illegal . Well, the interesting point of this is that in the 1914 martial law act was a law that came about under the absolute monarchy before there was democracy. So at that time, you could decree a martial law without the consent of any Prime Minister that might have existed. Under this act, which is hardly ever used, and certainly not for the entire country, the Army Commander has said, look, i need to do this for the benefit of the country and i am the Army Commander under the king. Fair enough. Not under the Prime Minister. So you mentioned an interesting point, the benefit of the country. Do you think this is for the benefit of the country . You believe actually this is a way of getting the two sides to get together and get us to some democratic elections . Is this the right step . Does this hurt or hinder that process . I do not think this is a good step for democracy at all. I think i mean, i have to foresee some things that might be occurring. I think this is a step in the direction thats helping the arch royalists. Okay . I dont think this is a step in the direction thats going to help thaksin, yingluck or the party in power today, that was elected in 2011. I think the Army Commander, i think hes acting in the interest of the arch royalists but he is using this tool, this martial law act, to try to make it legal, to try to make it look legal. What is it . It is basically a grab of political power by the army. But he can say, look, it is legal because i need to restore order and stability. But its not a coup. He can you see what im saying . Its sm its semantics. It may look like one and smell like one but it isnt one. Thank you. Paul chambers from changmai university. A couple of big earnings out of the uk today. Marks spencer posted afulyear decline for the full year. Total sales up 2. 4 on the year in the food division. Helia brahimi is here with us. Hes been 2. 3 billion pounds of heavy lifting. This is the countrys biggest producer. Its an institution in the uk. M s is 130 years old. Its official. Its been taken over in terms of profits. Earlier this year it posted 695 Million Pounds of profits for for the third year in a row weve seen declines in profits. 623 Million Pounds for the year. Half of the sales come from general merchandise which is the area that m s has been struggling in, fashion, basically. They havent got it right. They havent got the trends right to appeal to a broad range of customers and they havent got delivery right. Theyre talking about today teething problems with the website, huge problems there. And, again, they are really playing catch up to next who has both managed to get the trends right and most importantly, was very early on winner in terms of online. Thats because they had the i forgot what you call it. They had the postal ordered service. Yes. Click and click. What did you call it . Before the internet ever the catalog system. Catalogs. Yes, yes. They migrated that online. It was useful to them. M s used to post profits of 1 billion pounds. That seems a long time ago. It has had a spate of very good press in the glossies in the fashion mags. Belinda earl who was parachuted in last year. Leading lady. Yes, the leading lady campaign. Expensive campaign. But it is a winner with fashion journalists. Whether this trickles down into quantifiable numbers in the next three years, we dont know. This threeyear ou program, that has really struggled. One of their biggest problems, real est print is not so easy to change. No. Helia, thank you. Well come back to you and some other things. Vodafone, it says its core earnings will fall next year because of higher investment costs. The worlds second biggest mobile operator came in just above expectations. We get to see what vodafone is like without verizon. So what do you think . Actually, in the result of sales they were pretty much in line with where we expect. We now know they have challenges in europe but are doing well in their emerging market properties. Its a tale of two different stories, you could at Digital Media. The target is to increase the revenue from Digital Media from roughly 40 to at least 50 at a time they were in negotiations with facebook. According to a source close to the negotiations, the french group signed a marketing deal worth about 500 million. The deal will be first managed by publicis in the United States before being rolled out in the rest of the world. The partnership will be focused on video advertising on facebook as well as messages on instagram. It will get access to the user data of facebook to estimate the advertising performance and the potential on the social network, both publicis and facebook declined to comment. Obviously for the shareholders it will be good news. Not lenly becau not only because of the value but in terms of media. That will be a speculation after the failure of the deal announced two weeks ago. A russian billionaire has been ordered to pay his exwife 4. 5 billion to settle a sixyear divorce ruling. The ruling was passed by a swiss court. He will lose half of his wealth. Hes known as the fertilizer king. Hes currently the owner of the Football Team monaco. Hes ranked the 78th richest person in the world by lloyds. Tensions ramp up between the worlds two biggest economies. We are going to be in beijing after the break. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Youre watching worldwide exchange, bringing you Business News from around the globe. Headlines from around the globe. Resignations not on the agenda. Credit suisse ceo brady dugan stands firm. They plead guilty to criminal charges and pay a 2. 5 billion phone. Investors hanging up on vodafone without verizon. They forecast earnings will drop as it spends more cash on its networks. The Defense Ministry says the u. S. Should cancel the charges. Plus, thailands Army Declares martial law but stops short of a fullblown coup in a sixmonth long crisis that has paralyzed the government. Were just waiting for the la latest print of uk inflation stats. Sterling dollar is spiking higher on the back of that. Have you got it, helia . No, im speculating. Rising more than expected, 1. 8 is what weve got from cpi. So there we go. The downward march has come to a halt this morning. The squeeze on wages is tightening again. Yes, indeed. The last print of average earnings. It didnt even climb over, did it, the previous number. Thats why sterling has 1. 6847 on the back of that as well. I just want to say if we have the ppi number as well. I dont necessarily have at this particular moment. The core ppi flat on the month, 1 on the year. Lets get some more reaction to that. James ashley. Beside besides helia, james ashley is with us. A tick higher, james. Is the long march down in the uk number over . Yes, i think thats probably fair. I think were back into a territory where i would expect inflation to stabilize. I think last month was the low. From here, id expect inflation to be around about 1. 8 , 1. 9 for the foreseeable future. I think thats what the bank of england is expecting as well. From their perspective, this isnt material news. And from here on, theyre expecting inflation in that close range of just below 2 for the remainder of the forecast horizon. What at the moment are your thoughts on ill come to house prices in just a second. Your thoughts on base rates at the moment, when they actually move . I know well talk about house prices in a second. I think the two are closely related. The concern is about an imbalance in the Housing Market. Theres a risk that the fpc might take action on intervention there. The housing bubble or momentum shall we say will cause an Interest Rate rise in the action from the mpc. I dont think thats the case at all. I think the economy is performing quite strongly. There are underlying structural fragilities. Interest rates are being a long way from being tightened off. Our forecast remains november of next year for the first rate hike. The price index for march down 0. 5 . Now, the rate is up a percent. It has dipped slightly. That could be the mmr. That was in march. When did it come in. End of april, april 30th. These are march houses. It hasnt impacted it. The point is, im wondering whether heli