we talk about julius baer and its inflows. that's next. this is bloomberg. ♪ loomberg. ♪ anna: 30 minutes into the trading day, welcome back. here are your headlines. the islamic republic seizes a tanker in how most. -- hammus. it beats sales estimates for the second quarter. julius baer ceo declines negative rates after inflows slow for a third straight have. but it rises in the latter part of the year. good morning and welcome to the european market. 30 minutes into your trading day, this is the picture across european equity markets. we talked about the impact. the biggest gain or, the paper company out of finland up. it had a negative session at the end of last week. that's worth keeping in mind. some others in the same sector moving on. this is phillips up 4% on the back of those numbers, in particular china. we heard from the ceo earlier on. we've also got companies that benefit from stronger oil pricing. this has got an upgrade. let's move to the downside, what's bringing up the rear for us. this is in a region base machinery bu

it is all about changing the nejra cehic julius baer. how -- changing the story act julius baer. t -- changing the story and julius baer. nejra: second-quarter revenue coming in at 4.7 billion euros. estimate with 4.5 9 billion euros. -- 4.59 billion euros. margin ined ebit-a line. the second quarter adjusted tot-a coming in out of the, -- at a beat, too. it is maintaining its overall sales growth and adjusted ebit a-margin views as well. one of the questions for analysts is to do with the u.s.-china tariffs. look for an update on that and of course we will be speaking to the ceo shortly as well. manus. manus: a little bit more breaking news from them. this is on the chemicals business. theeat deal of action on chemicals stage. clarion is agreeing to sell. in thepected to close fourth quarter. 308 million. a little bit of breaking news on deals being done. i thought it would be disingenuous not to talk about euro swiss. expenses building the in swiss francs. they say now it is a question of how much more will they have to do to match the moves expected from the ecb. will they int

what is the story that julius baer is telling? manus: this depends on which characteristic the next ceo rings to the table. -- brings to the table. buyinground the world small pockets of wealth management. one of the spoilers in the story is the italian wealth management, what happens next is about 9 billion euros in assets under management. that is not huge, maybe 2% to 2.5%. well -- where will the growth come from? interesting, that is where the driver was in their growth story. the new ceo goes again for growth in the julius baer story. no bubbles. clients are the sidelines. give the nextto ceo a helping hand and a transition and will move sideways. cranny with the latest from julius baer live from zurich. staying in switzerland to cover some of these other banking stories. up next, easing out of the job. mario drager enters his -- mario draghi enters his last three months. we will discuss that next with sarah hewin who is still with us. this is bloomberg. ♪ anna: this is "bloomberg surveillance." 9:54 here in london. mario d

francine: what do you do with julius baer? filippo: julius baer, i think it is an interesting one. it is very different from credit suisse and ubs. the investment case in julius baer would be in --ms of if they are somewhat able to sell close to book value, it would be quite positive for the bank. the new ceo is starting september. they have done a lot of work on cost cutting and rationalizing the footprint of the bank. i think it has been rather successful in doing that. let's see what the new seo has -- co has for the bank. cautiously positive on julius baer. francine: going back to credit suisse, how quickly can we know that this is a trend to stay? credit suisse has been doing pretty well. today was a good earnings report , but can actually go back to something less appetizing for investors fairly quickly? filippo: that is a tough one. one thing we are seeing is this trend in tangible equity. they are getting very close to it actually meeting the target, which i think is very positive. one key question will be the client engagement. as we note, april has been a tough month and

hodler cleaned up julius baer after a money-laundering scandal. that is your latest bloomberg business flash. guy: a bit of breaking news over the last couple of minutes. let's talk a bit about the liberal democrats, a party we don't spend a lot of time talking about. it was in coalition government with the tory party. it has just named a new leader, james winson taking over. this is important and worth paying attention to. the liberal democrats have firmly pegged themselves as the no brexit party, and they are pulling relatively strongly. if we were to see -- are polling relatively strongly. if we were to see an election tomorrow, the liberal democrats could potentially take a large number of seats. it will be really interesting to see what joe swenson -- what jo takeon does next, how they advantage of the momentum liberal democrats have towards a general election. this could be a piece of the jigsaw as we approach the end of the year and potentially a new general election. pay attention to this story. ,tse 100 not reacting to this european marke

julius baer, cars bank, imperial brand, all at the open. nejra: a huge amount of corporate news, manus. let's get to the futures. front, we funds, -- are focused on the funds. in fiveto the lowest years, and it downgraded global equities to underweight. drop on.s. equities friday post that jobs data and futures lower in the u.s. and a drop in the european equities and futures look to be pointing to a lower open in europe today as well. manus. manus: there is no doubt about it. did we go lower in terms of yield? we are seeing a covering. ask yourself, post jobs, you are seeing a rise in prices and a movement in the yields. italy ramping higher. u.s. treasury higher. the ecb needs to act to support the euro area. also some lines coming through from a number of people. bruno le maire talking about fiscal stimulus. let's see how all of the data plays into the markets. yvonne man has been standing by. yvonne: you mentioned it is a heavy selling day. we are seeing red on the function on your bloomberg today. you mentioned about the jobs report nu

there has been speculation that rivalsbeen in talks with such as julius baer. another indication of the competition of swiss managers to keep their best private bankers. time for smart charts with abigail doolittle. starting with the s&p 500. yet another record high. abigail: yesterday, all-time high. today, a record closing high. other asset classes. katie stockton, thank you for joining. you have a list view. talk to us about whether or not you think this breakout will continue and where you think it may be going. katie: they removed resistance from the chart, so that is a good thing. reflect positive momentum. the last major breakout was 2016. proceeding that, we had a trading range characterized by downside volatility. you saw a nice followthrough in 2017. it entered the consolidation phase, now advancing to all-time highs. the breadth, meaning we are seeing good participation on the rally. it does reflect participation. abigail: in that previous example, it looks like we went from roughly above 2002 a little bit low 3000. if you were going to play this for

he will replace retiring ceo bernard from september 1st julius baer says part of a long-term succession plan and looked at potential internal and external candidates. >>> coming up on the show, the u.s. women's team makes it a fantastic four as it picks up yet another soccer world cup the highlights coming next we call it the mother standard of care. it's how we care for our patients- like job. his team at ctca treated his cancer and side effects. so job can stay strong for his family. cancer treatment centers of america. appointments available now. cancer treatment centers of america. did you know you can save money by using dish soap to clean grease on more than dishes? try dawn ultra. dawn is for more than just dishes. with 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. try dawn ultra. ♪ >>> the u.s. women's soccer team are world champions for a fourth time after beating netder lands, 2-0 in the final adam reed now joins us around the desk adam, i know i may sound -- it may sound a little smug given where i'm from, but how much better are

julius baer down. they named a new ceo. those are highlights to the down flow. still waiting on an opening price. we'll bring that to you as soon as we get. they unveiled a radical overhaul, cutting jobs in the bid to boost profitability. the ceo told bloomberg where the lender is focusing its efforts. >> corporate banking will be the greatest growth driver in the franchise as we see it growing forward -- going forward. that may change in the future. for now, we see growth opportunities that existed for several years and perhaps not been able to produce pay as much as we could or should have. we see growth in the private bank. anna: joining us from frankfurt, guy johnson. you were making and adjusting point about the share price react -- making an interesting point about the share point reaction. it is something, up 2.5% right now. there might be disappointment such radical moves have not sparked more of a share price gain. guy: yeah, that's probably fair enough. it was up over 25% on friday. overbear that in mind -- .25% on friday. just bear that in mind. 7.5%.

you have julius baer. is there a differential in the story of banks or is it all pretty awful because of a negative slope in europe and cutting rates in the u.s.? >> i think you are right. wealth managers are in a better position than the rest of us, the rest of the banking sector. they have positive spreads, higher returns on equities. is higher than the cost of investment capital. wealth managers are in a better position than the banks themselves. that's probably the area where we will be looking at. thinking about slashing the evidence. -- dividends. i know the market is going to hate it. is quite controversial. i applaud them for having the courage to do that. it's against the trend. it's against general logic. returning a lot of capital to shareholders. that has not helped. it's looking at underlying activity, that's far more important than give money back to shareholders. thank you very much. great contribution this morning. keeping us fresh on day bricker. coming back, the stunning headline is the c

while headcount isn't going down too much in that wealth management business, julius baer loweresterday showed growth in net new money, so we are seeing them hold steady in wealth management. david: our second story is td ameritrade. sort of abruptly stepped down, which raised attention for may be where they want to head. sonali: it is interesting. just a year ago our reporter asked him whether he would do a big deal, e*trade maybe. he said scottrade, which he came in and did a year after he came into his position, was kind of a distraction the last couple of years. the pressure is not going to go away, especially when jp morgan is bringing the game down. this says maybe they will be again,, day -- two m&a but we will see. they are not the first brokerage on wall street where we are seeing changes at the top. david: there are quite a few job openings, actually. alix: in the last story has to do with jeffrey epstein. the list of how it engulfs wall street, when we first started talking about it, we were like, i don't think it really does affect wall street. now it is starting to. sonali: