andrew bailey, later today. credit suisse plans to exit prime services and lower risk after the archegos scandal. we will bring our exclusive interview with thomas gottstein. the futures in europe looking up, gains after another record on wall street. the dow, s&p and nasdaq hitting new highs on the back of what many interpreted as a dovish taper from jay powell. that's check in on how this is playing out in the first few seconds of the trading session here in europe. you had commentary from christine lagarde at this european central bank, also pushing back on market expectations, saying a rate hike from the ecb next year is off the table. the ftse 100 is gaining 0.4%. look ahead to the decision by the boe with the congress split 50-50 on whether they go for a

rate hike. cac quarante gaining 0.4%. we can look at the cross asset board to see how things are playing out. yields flattening has changed to yields steepening on the back of the commentary from jay powell. he is looking at inflation continuing in that first and second quarters of 2022, but delinking the taper from the rate hikes. conditions are more stringent before you get the hikes. two year lower 50 basis points. the 10 year, 1.6. the pound in focus ahead of the boe decision. sterling lower by 4% from the highs we saw at the end of may. prude in focus as opec-plus at -- prude in focus as opec-plus at the $80 per barrel.

the fed has finally unveiled its much expected tapering of stimulus. as for the timing of the hike, the message from jay powell is be patient. >> it is time to taper because the economy has achieved progress toward our goals. we are prepared to adjust the pace of purchases. our decision to begin tapering asset purchases does not imply any direct signal regarding our interest rate policy. i do not think we are behind the curve, and policy is well-positioned to address the range of possible outcomes. that is what we need to do. it would be premature to raise rates today. i do not think that is controversial. we want to see the labor market heal further, and we have good reason to think that will happen as the delta variant declines. inflation has come in higher-than-expected, and

bottlenecks have been more persistent and prevalent. he see that like everybody else, and we see they are on track to persist well into next year. think we can be patient. if a response is called for, we will not hesitate. tom: let's get into the market reaction with ven ram from our markets live team. the markets are applauding what was seen as a dovish taper. we have to applaud the communication and forward guidance of the central bank. the taper tantrum is long gone at this stage. ven: absolutely, but the question is, the fed has set up bond markets for the middle of next year. with the key takeaway, the fed

said it is premature to discuss rate hikes, but what they did not do is push back on the markets pricing of rate hikes. that has important takeaways for the markets. next year i believe a ticking time bomb, and as the markets aggressively price rate hikes, there will be a selloff. i did a study on this going back, studying the fed rate hike cycles, starting with the dot-com bubble. in the rate hike cycles we have seen, for every 25 basis point increments we have seen 17 to 18 basis points in the two year rates, and i think that is a nonchalant to the prospect of rate hikes, and the front end will selloff aggressively next year. tom: ven ram, the importance of highlighting the risks, as you

say for those who have loaded up on the front end of the yield curve, given your expectations we will see sharp rate hikes in the second half of next year. the timing laid out by jay powell. when it comes to the bank of england, markets are pricing in a high chance of a rate hike. economists are 50-50 on this. what is the market reaction to a rate hike if we get one from the bank of england? ven: from the end of july about six basis points from the two year rate, and now 70 basis points. that is a selloff that i cannot remember in recent years. that means the market is well-positioned for the bank of england rate hike whether it is today or december. what will matter for the markets is what the boe has to say on

inflation, and what that means into next year and beyond. a lot will come down to what the bank of england's guidance is. considering how much we have sold off, i think markets may rally on the news as the dust settles. it could be difficult to forecast because it depends on what they say. as the dust settles, the risk-reward asymmetry is here. tom: inflation is front and center for the bank of england, and part of that picture is driven by the oil price. wti holding up at $80 per barrel. we are looking ahead to opec-plus. what are the dynamics for oil going forward, and how does that play into the inflation picture? ven: if oil prices continue to climb higher, and i must say

they are more than anyone for saw, and even at $75 a barrel, now $80, it is going up and higher. if it continues to climb higher, that will worsen the inflation dynamics obviously. that is a tax on consumer demand, and the boe and other central banks will be forced by the markets to raise rates more aggressively and bring them forward rather than later. tom: ven ram from our markets live team, looking ahead to the bank of england policy decision later today, when we will be sitting down with the governor, andrew bailey. we are also flagging the opec-plus meeting, and if we hear anything about increasing supply. that's check in on market movers, another big day for

earnings, particularly the banking sector across europe. commerzbank getting more than 5% on the back of earnings that beat. they rose to almost 500 million euros. the revenue rose less than expected, and they expect a profit this year. bloomberg writing about the fact this seems to justify the ceo's turnaround plan. optimism, and being rewarded by investors. credit suisse is flat, gaining 0.1%. we will hear from the ceo and chairman in the next 30 minutes. currently down 1.4%. they missed in terms of the first half revenue. they do not see a lot of solid demand in the winter. some concern for wizz air. coming up, we are back at cop 26 where clean energy company set

out there plans to tackle the clinic crisis. we will speak to the ceo of spanish electricity giant, iberdrola. that is next. this is bloomberg. ♪

tom: welcome back to the open.

11 minutes into the european trading day. what a significant weaknesses for central banks. the fed setting out their determination to taper, a dovish taper, setting up the line on inflation and pushing back on hiking rates. francine is back with us. this is very exciting. the fact we are reunited. another big week for earnings. francine: we have an interview coming up which was enjoyable to do. we will play that a little later. credit suisse surprised everyone, out laying their strategies which were meant to come later, but came today. we learned a lot of news, really interesting to see the dynamics.

tom: the future of that swiss bank and what it means for wealth management. we are looking forward to hear from that ceo in the next 10-20 minutes. let's get back to what is happening on the ground. the cop 26 talks continue, underway with world and business leaders setting out their plans for curbing global warning. maria tadeo has a front row seat . what is on the agenda today? maria: the focus here is on the clean energy, and on that note we are joined by jose ignacio sanchez galan, chairman / ceo, iberdrola. i have to ask you, we are debating clean energy but paying so much attention to costs. and opec.

isn't it ironic we are keeping an eye on the future but paying so much attention to oil? jose: for 20 years we have been trying to change the company. we have closed our oil and power plants and are fully invested hundred 20 billion euros. [indiscernible] we will generate electricity with cleaner sources. to show the world it is possible to do these things in a different manner, and defend the interests of the shareholders. maria: given the energy crisis with bills going through the roof, the criticism for many is

renewable energy is not sufficient. what is your take on that? jose: i remember many years ago we tried to sell green energy, we were criticized. we have already passed through this situation. my point is simple, the current situation cannot be forced, in building new renewables. we will be much more agile. in europe we are achieving the target for 2030. we need to make double of the renewables. we are too slow in the process.

[indiscernible] maria: you are taking long term discussions based on what you think will be a one-off. you think energy prices right now will come down. jose: no doubt. it will go down. next year is half of what we have today. the electricity price for next year, the forward prices -- [indiscernible] maria: the follow-up question, our governments overreacting? we have seen them put out so many measures to cap prices. are they wrong or panicking? jose: i think probably they have

not made the proper analysis of the situation. my point is we have very good things in europe to defend. the price for carbon has been crucial not only for european growth, but it is a great system. we have to work more bilateral. in europe, spain, portugal, we have bilateral contracts. if you can provide something to the customers -- the normality is in the rest of the

sectors. maria: a country like yours will have extra benefits because of the situation, should have that cap. jose: that is not true. our numbers were published last week. we have a tremendous negative affect. what is positive, our customers benefit on the range of 2 billion euros with lower costs. that is a win-win. we cannot predict what will be the future prices. we have an instrument for looking at minimizing these

effects. who is not benefiting? the regulatory challenge -- [indiscernible] maria: governments negotiating the contracts is the issue. you mentioned the system works well. are you in favor of a global one? and i want your thoughts on india because they announced a big net zero plan. is that an investment opportunity for you? jose: i would be more than delighted if the rest of the world decided to follow, that would be great because it would minimize a lot of problems. they will make a lot of positive things. india is a great country, i like

it very much. i know india very well, i would be very delighted if that is an opportunity for us. maria: thank you for being with us, jose ignacio sanchez galan, chairman / ceo, iberdrola. francine: maria tadeo and glasco. coming up, the bank of england could become the first major central bank to hike -- exciting stuff. plenty more on that story, shortly. this is bloomberg. ♪

francine: welcome back to the open. at 23 minutes into the trading day. we did not see the taper after what we heard from the fed that a lot of markets were talking about. there was no taper tantrum, if you have taught others, you realize when they are quiet. the dax, the cac, and the ftse between 0.3% and 0.5%.

the bank of england could raise interest rates. with crucial job market figures not available, today's decision is on a knife edge. lizzy burden joins us with the latest. it basically depends on two members. lizzy: it does, and this is the most exciting day in u.k. monetary policy in a long time. the markets are convinced they will raise rates, and the backdrop is a target inflation for the past two months, hawkish hints from the committee, including the governor himself, and a more generous than expected budget. on the other hand, you have doves on the monetary policy committee saying they need to wait for clearer data on the labor market. they want to see how covid pans

out this winter, whether restrictions will be reintroduced. the bank will want to defend its credibility and show that it is not crying wolf, but it will be a close call today. tom: break down how the vote could go. we talk about the hawks and the doves in the mix, and the importance of that, and what we know at this stage. lizzy: you can see we have three doves, two hawks, another two who could join them. we will get the decision at noon today. francine: what does this mean when you look at the pound and the dynamics? what reaction are you looking at? lizzy: the bank of england could go first. there is no question whether it can maintain its credibility or if it is in control of markets still. we have had an aggressive ramping up of expectations over

the past month. can we get economists and markets in line with the bank's messaging. tom: thank you very much. we will be covering this throughout the day. the markets are posting gains 25 minutes into the trading session taking off from the record set again from the dow, the nasdaq and s&p yesterday. gains of 0.5% across european markets. futures are holding onto gains of about 0.2%. coming up, circumnavigating the globe in a yacht. ellen macarthur joins us live from cop 26 and glasco. -- glasgow. that is next, this is bloomberg. ♪

♪ francine: welcome back to the open. we are 30 minutes into the european trading day. the fed starts tapering. jay powell says the central bank will start trimming asset purchases this month but he is in no rush. to raise rates. . it could go either way at the bank of england. we will speak to governor andrew bailey later today. credit suisse plans to exit client services. the swiss lender looks to lower risk after the archegos and greensill scandal. we will bring you our exclusive conversation with thomas gottstein. the markets, almost a record i

once again. they are on a tear. tom: you have the certainty of the taper now. jay powell giving himself and the fomc that flexibility in the months ahead to respond. they readjusted and reframed that the concept of transitory. the market still pricing in two rate hikes by the end of next year, but jay powell sang the conditions have not yet been met. those conditions are more stringent. in terms of the handoff, because you had another record close, and it was not just the snp and the dow, it was also the nasdaq and the russell 2000. gains of 0.5% across the benchmark. in terms of the dax, gains of 0.3%. we've had credit suisse, socgen. that is fueling the gains partly we are seeing in the dax. the cac is posited by 27 points

and the ftse 100 as well, up as we look ahead to that boe decision. christine lagarde yesterday trying to make the case that a rate hike and the conditions there have not been met for 2022, pushing back against the market expectations, essentially saying that it is not on the table. you have oil prices in focus a get. you are seeing some gains across wti and brent ahead of opec-plus, real estate also higher, banks also getting. at the bottom of the list, chemicals down, as is construction materials also. broadly, it is a positive picture in europe on the back of that fed decision as we look ahead to the boe and economists 50-50 on whether or not we do get a rate hike from the british central bank. francine? francine: tom will have a lot more from central banks and on inflation watch. we have the bank of england,

don't miss our interview with the bank of england governor, andrew bailey. let's get back to the eu climate summit in glasgow. i hope it has warmed up since i left yesterday. a number of the world's leading ngo's and charities are there contributing to the debate and to the negotiations tackling the climate crisis. maria tadeo joins us with an interview. maria: good morning, francine. we are joined by ellen macarthur , ceo of your foundation. you're are an open advocate for climate issues and the circular economy. you have been here for three days and you are more optimistic now than you were on sunday. why is that? ellen: i feel there is a very strong dialogue with business and policy now. cop has been about business and targets. to see business playing such a role and waiting for that level playing field and that understanding of where we are trying to get to, i feel that dialogue is absolutely key.

maria: it's not just about the looks. it's nice to be green but you get the impression that there is real money on the sidelines that wants to be executed. ellen: the money is there. how do we get it to the places that it needs to go? there's been a huge conversation around the switch to renewables, which is vital to reach that 1.5 degrees target. 45% of the challenge is how we make and use things, including food, agriculture, mobility. it is the economy itself. if we can get business is orientated towards that, not only do we have massive carbon savings within that remaining 45%, but we also start to address issues such as biodiversity, regenerating natural agricultural land. then you start to see the economy solving the problem for you rather than slowing down the transition. maria: you make a good point. you say it's not just about renewables or future cleaner energy sources, and the green

economy, but using what we have now in a different way. i wonder, would you say that business, but in particular the consumer, are they aware? do they have the information they need when it comes to a circular economy? the criticism is sometimes they don't get it. ellen: absolutely. they don't. we have mobilized system solutions at scale. our job is to try to change those systems to enable those consumers to have the choices that can make a positive contribution to the challenges that we face. they are not that right now. if you take food, what if you could walk into the market and buy an item of food that says this food is nature positive. the supermarket that sells it is procuring food in a different way, procuring food from farmers who are building natural capital, who are storing carbon in the soil, then you are making the world a better place through your choices. maria: you said something that is key. when you want to be sustainable

type of customer, you have to have the information that you need. sometimes, it's very hard to navigate that space. is it perhaps because we need standards of reporting that are different and much more simple, streamlined? ellen: i think we need to know what success looks like for the global economy. that sounds like a vague thing to say. within a circular economy, um eliminate -- you eliminate waste and pollution and regenerate natural capital. if you run the economy in that way, from the design phase, you design out waste and pollution because you make all plastic have value. your rebuilding natural systems. if you run the on renewable energy, you have an economy that can run in the long-term which delivers for the consumer. the choices out there play a part in the solutions space of the global economy. it is economically beneficial for the global economy as well. maria: the catch line of the conference seems to be no more blah, blah, blah and more

action. is that still needed, however? ellen: i think the solutions need to be provided for the consumer. i think that is are there is a massive opportunity. the consumers cannot make the right choices today because they are not there. the whole economy needs to shift to provide those solutions for consumers. whatever they want to call them, it rebuild the economy. how we manufacture vehicles, food is grown a different way, then the economy plays a part in the solution and the consumer doesn't have to understand it. maria: is not the consumer, but the companies that need to make it simpler. the ellen macarthur, thank you for your time. good day in your final day of cop. tom? tom: thank you very much indeed. interesting conversation about the circular economy and the need for that. let's get the bloomberg first word news. the u.k. government has back to move to overturn parliament's rules on sleaze after a member of boris johnson's party was

found guilty of paid lobbying. la -- lawmakers voted narrowly in favor of setting up a new committee to examine the role. the foreman minister and determine whether those accused should be given rights. pastor sent says the vote was floored and denies wrongdoing. phil murphy has eked out a win for the democrats in the governor race in new jersey. the associated press says murphy gained 50.2% of the vote with 98% of precincts reporting. the close race in a state easily one by joe biden is likely to energize the republicans ahead of next year's midterms. negotiations to revive the 2015 deal on iran's nuclear program will resume in vienna on november 29. it ends months of speculation over whether -- and iran's new government could commit to resolve their long standoff. it is the first signal since june that there may be a horizon

further sanctions on iran and its return to oil markets. it's global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. francine? francine: we have a quick look at what the markets are doing. they are hovering to record highs. it's pretty incredible after we heard from jay powell talking about tapering. this was widely expected, which is maybe why the bond market did not reprice anything. i don't know whether we do have a market board. global stocks hovering around these record levels. the fed was so very well flagged that it is not moving much in the markets. they also said they will be patient about raising rates. the other thing i am looking at is the treasury yield curve that you can see on your screen remaining steeper compared with before the fed decisions. we will have plenty more on that throughout the day. two another interview, and this was credit suisse.

we did hear, tom, and i am a stream excited to bring this interview to you. we heard about strategy from credit suisse, we heard about earnings. i did an interview with the chairman and chief executive. the fact they were together is because the chair has a much more prominent role in a switzerland, different from the role in the u.k. and u.s. i started by asking them exactly what the strategy forward is and we also talked about earnings. let's listen in. >> i fundamentally believe that, at heart, every banker should be a risk manager. it's really important. and obviously, when you want to, as i said before, you want to keep the fantastic entrepreneurial spirits, client attention, agility, innovation working very well together across silos that all people at credit suisse have. at the same time, we want to elevate the risk management and the clear culture of accountabilities and responsible these, and that is a process

that takes time, and that is a combination of different levers. it starts by -- leaders. it starts by leading by example of the top, as we are doing. it go is on by attracting and hiring the right people for the bank, the right role models that you want young people at credit suisse to aspire to be. and we have hired a cro, internally, we have promoted our chief compliance officer, head of hr, we brought a chair of risk, member of the compensations risk committee. this is an example of what you also have to do in order to change the culture and have the right values at the top of the bank. third, strategy. so, the strategy itself is a strategy which has much lower risk going forward, providing the appropriate returns, as we shift capital into the higher return businesses. and then, final point, you have

the risk appetite, which the board will set as a consequence of the strategy, and you also have the right incentives to complement the whole package that will progressively, to your question, take risk management at work in the organization and will absolutely be done through all the ranks in the bank. francine: when you look at the investment bank, it is more conservative. what does it mean for competing in the big-league? >> we have very strong businesses in the commercial banking area. we have made some tough choices. we have strong businesses like in m&a capital markets, in credit and in other areas. as you saw in the third quarter results, we had very strong increase in revenues in these areas, including in equity derivatives. our plan clearly is to have an investment bank which has less capital, which is much more

connected also with the wealth management area, and has also continued strong, global franchise. and that's why we have also decided to have one global investment bank, so we included not only asia, but also swiss bank. this is very important for us. next part of our strategy to have -- to strengthen the bank, to simplify many of our areas but also to invest in growth and we want to invest in the investment bank, in capital markets, being m&a, all the other core areas. francine: how do you avoid the slippery slope of actually getting smaller? >> this is something that we have, i think, managed very well. if you look at our nine-month members, we are, despite having already done a significant reduction in capital in the second quarter, we are up

significantly in terms of revenues, and that continued in the third quarter. and it's clear that the exit of prime will have a short-term restructuring affect, but the areas where we want to focus on are growth areas and where we see competitive advantages, where we have strong positions, and we will continue to invest. and i think, together with the wealth management area,, whether it's in trading m&a capital markets, we have significant upside. and last point, it's really also the areas in asia where we have seen a bit of a slowdown, but in the mid to long-term, will continue to see strong potential to grow further. francine: does a switzerland really need -- does switzerland really need two large banks? does it make does not make sense to figure out a merger -- doesn't not make sense to figure out a merger -- does it not make

sense to figure out a merger? >> that rumor has been going on for a long time. we have all the capabilities to be a really successful bank, both to clients, which it has always been focused on clients, but also for shareholders. the strategy we are announcing is absolutely, in the unanimous opinion of the board, where we came to quite quick should -- quickly actually, this is the right combination in order to deliver value for both our clients and our shareholders. that has been our absolute focus as a board and executive board. >> i would add the financial marketplace is strong with only two players. in academia, it's good to have eyh or etfl, or la liga in spain and barcelona. francine: archegos, greensill, is that it for the bad news for

credit suisse? can you really move on from those? >> we have made a really significant effort on cleaning and addressing those issues. the archegos issue has been addressed and we have published fully a report that shows that we learned about what happened and we were very transparent about. greensill, we are still working on it and have an investigation going on. we are trying to show and recover all the money possible for clients in the meantime. andrea also did some recent settlements, as you saw, so this is also pay process that i can tell you we are much better than we were six months ago. we will absolutely, relentlessly pursue the closure, when appropriate, of these issues going forward, and the lower risk we are creating should absolutely avoid these type of issues happening again. francine: how do you keep morale at south level high -- staff level high after all these blows? >> the staff are waiting for the strategy. i think it will liberate people. what is the strategy, what is

the structure? they will take away a lot of positives on the q3 results, which were, as i said, very strong. we have a strong balance sheet, we have a very strong earnings across wealth management, investment banking and asset management as well. this will help people get to the next level. francine: we are doing this interview together, so do i take from that that you have full confidence in management and thomas gottstein? >> if that would not be the case, we would not be doing this interview together. francine: is there a message for investors in that? is there someone to blame because of what happened in the past that credit suisse? >> the message for investors is very clear. when we announced when we would do the strategy review, i was very clear that it would take some time. and the reason why it would take some time, i want to be very clear about it, is because if we were going together to set out a vision for credit suisse for,

let's say, 10 years, it had to be the right one. it is worth investing actually only five months, less than we thought, to set out a vision. why? i really wanted the process to be completely inclusive, everybody to be heard, all points of view to be considered. there were no sacred cows. we brought all scenarios, pros and cons, revisit them again, and when we thought and felt that we were unanimously behind a strategy, which was a bit sooner than we thought, we have announced. that was the time for debate, now it's the time for execution. an execution is as or more important than the debate and the strategy. francine: with the current team? >> with the current team, led by thomas. strategy, in the end, is actually simple to say, but difficult to execute. you need the right direction. if you do a huge effort in the wrong direction, that is really not useful.

so we believe absolutely, unanimously we have set out the right direction. now, you need the right team with the right people in the right positions, you need a team working well together so that the team itself is worth more than the parts. thirdly, you need relentless execution, quicker than peers, to create additional competitive advantage. now, that's where this new phase starts. >> i would also like to add, all the appointments we made, i always made the recommendations to the board on each of these appointments we were absolutely aligned and it was a joint recommendation. francine: if you could go back in time, is there something you would do differently? >> i think we did a lot, starting with some of the legacies already in the fourth quarter last year. and if i look back when i started in february of 2020, three weeks before the pandemic started, i was very proud that credit suisse under my leadership actually led covid

sme program in switzerland, participated. credit suisse took the lead on the. i think it was a very strong start. we achieved a lot also in terms of reorganizing some of the businesses in switzerland. 2020 was, if you look back, you know, the first 12 months was actually a quite solid progress with respect to the overall covid situation. but as i said, we already started some of the legacies in the fourth quarter. and it was now obviously due to the two events we had in march with archegos and with supply chain problems with the new chair coming in the right moment to sit back and look at the strategy. i think we have achieved a lot in the last six months where we have gone, as one team, the board of directors, led by

antonio, the executive board in several integrations, we came to a joint recommendation on the strategy, on the structure, and we have done that faster than originally planned. so we are now in a position really to have clarity on the next few years. francine: do you have to pay staff more to keep them happy? antonio: we actually want to pay for performance and in a competitive market. if we create economic value, it's absolutely clear that we will be able to do that going forward. francine: have we reached peak m&a? >> m&a this following capital markets, equity markets. we have seen a big rebound this year because of the post-covid gdp rebound. i think at the moment, ceo's are very much active in m&a. i think the m&a overall

situation continues to be very productive, with also low interest rates. from that perspective, m&a continues to be very strong. francine: did you realize it was going to be so challenging before you took the job? antonio: not really. [laughter] when i accepted in december of last year to take the chairmanship of credit suisse, i already thought, given the succession of small but a long list of items that were legacy issues at the time that there was something that should improve in terms of risk management. obviously, when archegos and greensill happened, they were absolutely beyond what i thought would be successful -- acceptable and well beyond the normal ups and downs in companies. therefore, we had to address them quickly, and that increased internally the sense of urgency. so obviously, those were really two unacceptable events. as thomas also said. but that had, on the other hand,

the effect that it created a sense of urgency internally, and the clear understanding throughout the organization that we had to change that, and we had to make sure that these type of things do not happen again. francine: what did you find trickiest in dealing when you saw this and actually seeing the strategy and figuring out what credit suisse would become? >> it's not really a matter of what i found trickiest. but when you're in a situation of urgency, in the short-term, and at the same time, you want to set a long-term vision for the company, you really have a more complex situation because you have to deal with the short-term, and at the same time, we had to do this methodically, thorough process about seeing all scenarios and setting the direction for the big. this combination of both being very much on top in the short-term but with the eyes on the stars was a really important, nation, but i think

we came to a quite good outcome. i think that it is great for employees. we have quality now, and now it is all to the execution phase. francine: thank you so much, both of you, for joining us today. that was arts was a conversation with the credit suisse chief executive, thomas gottstein, and the chairman. what was interesting, first of all, they seemed to be on the same page. there had been, i don't know if it's rumors, but the chairman is so much more powerful in switzerland than they are here. he was really surprised. you are wondering, or at least i was wondering, what the relationship was like with management. could they have dealt with it better? could they have acted quicker? maybe. tom: key things that stood out to me, the unity between the chairman and the ceo, but also the messaging that now is the time to execute. they've taken on a board the lessons learned and now want to move forward and execute on

that. francine: i have to say, it was tainted on their side with optimism. we have to see what the share does. i guess they are giving them -- shareprice does. i guess they are giving them a little bit of time. 55 times the word -- in the report. they need to get risk under management. tom: shares down year to date 13%. march is when it fell off on the back of those scandals. it is currently flat. unchanged at credit suisse in terms of the stock but your to date, down 13%. francine: the big story, the boe, to hike or not to hike? tom: let's get the bloomberg business flash now. socgen has extended a rebound in equities trading to beat the top wall street makes. the paris-based lender reported a 53% increase in trading stocks and derivatives.

it also saw a record revenue from financing and advisory and low provisions for bad loans. ing has beaten forecasts in the third quarter after it set aside less money for doubtful loans. net income at the dutch lender rose 73.5% in the last three months. ing reported strong growth which offset pressure from negative rates in the euro area. that is your bloomberg business flash. francine: we have a lot coming. our interview with the bank of england governor, andrew bailey. we are getting a couple of interesting notes. socgen, kit juckes, i love his notes, saying the boe may not hike today but i don't much like cable either way. we are looking for what it means for starting. tom: cable also down about 4% since may. we will see how this plays out across the asset space. we are going to have that interview,. . that crucial decision50-50 is

how the economists are calling in as to whether or not the bank of england becomes the first major inc. to hike dutch major bank to hike -- major bank to hike since the pandemic. this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.

♪ >> we clearly are setting ourselves up for a policy er

or. >> the spillover effects of the and containing if they have to pivot more dramatically and do this more rapidly because they started, in my own opinion, a little bit late, that could be very destabilizing. >> i don't think that we are behind the curve. >> i actually believe policy is well-positioned to address the range of possible outcomes. >> this is "bloomberg surveillance: early edition." with anna edwards, matt miller and kailey leinz. anna: 9:00 a.m. london, 5:00 a.m. in new york and 5:00 p.m. in hong kong on this thursday, november 4. central banks at center. stocks are near record levels after the fed decides to taper stimulus and says it will be patient about raising rates. we will hear from the bank of england today. a tale of two banks. credit suisse expects a loss next quarter to capital has been a year to forget. socgen in france tops estimates as equities trading rebounds.