we speak to the ubs chairman, axel weber. we will talk about market movers , gamestop, and banking in general. this is bloomberg. ♪ bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. last year, i spoke to axel weber about market concerns for 2020, then the world looked a little bit different. the u.s. has a new administration, of course markets rally individual stocks this week, driven by big names but by day traders. the fed chair jay powell was even asked about asset prices yesterday. chair powell: if you look at what has been driving asset prices really in the last couple of months, is the connection between asset prices that is not as tight as people think. francine: for the outlook of 2021, axel waiver, ubs chair, and -- axel weber, ubs chair, given the issue with gamestop and surrounding companies, what is your take on the impact this could have on the banking system? dr. weber: first, francine, as you said, normally we would meet in davos this

francine: that was ubs group chair axel weber. bloomberg sources say the decision to cut 10% of its bonus chargese as a series of -- dani burger, how likely is it that credit suisse will go through with these cuts? dani: it does seem very likely. the lenders are just finalizing what the level will actually be at this point. in the coming week, sources tell us they will start to inform employees. 10% is the baseline for what the onus cuts are likely to be, but they could -- what the bonus cuts are likely to be, but they could go as high as 15%. credit suisse has had a quarter of struggling. they are set to post a loss for the fourth quarter and they have had not just these loan losses from covid hitting them, but also a lot of growing costs when it comes to things like legal on a-- $850 million spent u.s. legal case. this does break with the past two years of bonus plans at credit suisse. it kept in more or less flat and different from their rivals. other big banks come in some cases, and indeed many cases, are increasing the bonus

we'll hear from our exclusive interview with axel weber. good morning, everyone, and welcome to "bloomberg surveillance." i'm francine lacqua in london. tom keene in new york. frankly, there is no other story in the world apart from what is happening in the u.s. right now with the democrats nearing proceedings to impeach president trump. the other story is lockdowns. not only vaccines but just in the u.k., could tighten lockdowns in england. i'm not sure how that is possible given where we are in london. there is word angela merkel is prepared to extend some of the measures taken until april. ," i saw the success -- tom: i saw the success of israel versus the known world in getting out the vaccinations. you are right, there is no other story. we will bring you the events throughout the morning. the president meeting with the vice president yesterday, what we will see on tuesday and wednesday. far more than that is the drama, and for republicans and democrats, the new measurement of the hurt inflicted by the siege at the capital. -- at the c

plus, here at school sibley from axel weber -- exclusively from axel weber. ♪ haslinda: we are bringing you live pictures of malaysia where the prime minister is beginning his address in the heart of politics in the country. this comes amid an emergency being called that could last until august depending on how successful they are in containing the virus spread. this comes a day after the prime minister imposed a two-week locked lockdown in most of the country starting tomorrow to infections.rge in covid 19 cases have been hitting a record high. the government is forecasting daily cases to reach 8000 by late march. this state of emergency is being called amid calls for an election to be held as soon as march. he could be successful in holding off until august depending on how it plays out. live pictures of the malaysian prime minister right now giving a briefing on the emergency which was called in the last hour. rishaad: let's get back to our coverage of the ubs china conference. tom, take it away. we are joined now by the that is andpany does amongst other things flying taxis. what is

when we spoke to axel weber, and we spoke to someone from the ecb that looks at some of the credit concerns or the loan concerns, and he says it is not really -- right now. if this snowballs, could it be -- could it touch or infect other parts of the financial world? marcus: i don't think so. right now this is just small techie stocks, not going to large-cap stocks. barring anything i mentioned. it is a system issue in how the plumbing works and how people can get liquidity, and that is where the fed might have to come into provide more liquidity. but we are not seeing hedge funds going properly banged yet, and we are not seeing the drop in liquidity. tom: of the single distinctive feature, t minus one, t minus two, t minus three is the idea of shorting stocks with a short instance over 100%. is that going to be the focus of legislation and regulation? marcus: it is a very good point. i had this debate today. do we relax regulation, making it so you don't have to declare the shortfall for two weeks or a month. that would be the worst way of going. in essence, save our short-sellers. what do

anna: interesting conversation, the ubs chairman axel weber. credit suisse is considering cuts on at least 10% of its bonus pool. the decision comes after a series of charges hit the lender's profit last year. joining us to discuss is dani burger. how likely is it credit suisse will go through with these cuts? dani: it does seem likely at the moment. sources have told us the board right now, the executives, formal -- finalizing and planning to tell employees in the coming weeks. 10% does seem like the baseline at the moment, but the cuts to bonuses could go as high as 15%. we have to remember credit suisse is dealing with a difficult fourth quarter, where they are estimating a loss in profit. it has been a tough year, not just loan losses, but a lot of costs, and a lot of charges. they have to pay $150 million due to a u.s. legal case. this is breaking from what we've seen the past two years from credit suisse where they left bonuses flat and different from other large lenders. this is what these banks are planning on doing. a lot are seeing in

haidi: the ubs chairman axel weber. this is bloomberg. ♪ haidi: consumer spending has continued to support the recovery in china over the past year. it is expected to continue into the first quarter of 2021. ubss get back to the greater china conference in shanghai. tom mackenzie is with us. i am pleased to say i am joined by christine peng who is china.eater head of we will start with that question. haidi just posed the question about covid-19 infections in china. y global comparison. there is a locked in hubei. some pressure from local governments to restrict people's movements ahead of and during the new year's festival. a lot shopping is done. to what extent could this be a dampener on china's consumer sector? >> we have seen such resurgence of new cases across different regions throughout the country in 2020. the chinese government has dealt with it pretty well. goingicky thing is we are into chinese spring festival, which is the heavy season. the restaurant sector. i think the lockdown could potentially impact t

manus: if this is about confidence, confidence from the chairman, axel weber, who at the summit last week, tom caught up with him, he was confident in hamers'ability to do the job. all of the team a bloomberg have seen many ceos, and these issues come from left field. the possibility of criminal issues around money laundering in left field, they did substandard due diligence. it is a question of sources. my first engagement with ralph on camera, the last good set of numbers to put in front of the analysts, when they chattered about the challenges that might come from the investigation, it was very straightforward. i will comply with everything asked of me. that was my first take on ralph hamers. matt: manus cranny giving us the interview with ubs, incoming ceo ralph hamers after his career at ing. we are going to hear more throughout the day. the world economic forum has gone digital. this week's agenda, world leaders meet virtually to discuss a crucial year and rebuild trust. bloomberg brings you a piece of the action today. francine lacqua moderated discussion with the head of the