power struggle. of course, the aftermath of greek finance ministers with the day of reckoning inching ever closer. futures are higher. the dax futures are up. greece has the experience getting trickier. >> indeed. austerity eventually has the impact. ireland will see a growth rate of 4% and it is up. we see how it opens. you have the swedish central bank and the federal reserve. you have the bank of japan and he said it could be just a

little bit of surprise from the bank of japan with a little shocker. qe will drive a euro store. the dates is to watch his salaries and pensions. should they be allowed to retire at edit an earlier age? the devil is in the details. that seems to be what the rumble was about with the finance minister getting details. that is what they want to see before they give you any more money. back to the focus with the hq. this week, the story was that a may consider the business. they will bring back the bank and the essence of this is all of the banks in the u.k. with

the retail operations. this is a strikingly important move if they decide to do it. corporate lending is paid. nothing radical. we will have a detail. you have credit suisse and ubs. it is rbs way ahead of the pack. finally, he and his wife hand in the resignation. >> the stock rallied 15-full.

lamborghini -- jon: not a lamborghini men. hire across globally and deutsche bank has 3.5 billion euros of cost reduction and cutbacks. they are the trends. there is emerging of u.s. pc. where are the banks growing? >> they will be shedding assets and getting leverage ratio all the way up. they will be increasing and spending $70 billion on relationship-building. they presume that they want to

focus on client services. here is what they had to say when they announced the changes. we must remain client-centric. we need to become more geographically focused. we need to avoid trying to be all things to all people. >> the last comment gets to the core of what they are trying to do. they are going to have the ipo as the end of 2016. in terms of retail banking, they will go down and, as a company they are trimming it and we will focus and try to trill down on which countries and what sort of job losses there will be.

the cost-cutting is going to mean some lost drop -- lost jobs. in terms of return on equity, to give you a sense of how far they need to travel, in the first quarter, they came in just north of 3%. john: they got in. what don't we know? >> we do not know what the cuts are going to be and they want to trim in some places. they had a remarkably good quarter and a lot of it came from jet training. we saw it in the volatile world out there.

will they be exiting? to what extent will they be trimming back? they half to take a look at the strategy going for for wealth management. are they competing? is this their main competitor. as he was saying, the markets seem to like it at half a percent. >> you will be a busy boy. we will bring you an interview with the ceo. hans nichols will be sitting in front of him. let's go dover -- let's go to stephen engle. you expected it to be higher after the announcement on friday. then, another rumor and report

this weekend. take us through the story. stephen engle: they had a quarter-point boost after the report from the chairman and they said they could relocate the headquarters. on sunday, we have the news from the sunday times with the unnamed sources. they said that hsbc may spin off the retail banking business and reemerge. again, the report said that no deal was imminent. it did not say where it got the information. it was moving the market and it was the most since it was up at 5%. the other one got tons of information in hong kong.

there is speculation that if they move the headquarters, it would likely be back to hong kong, the city that was cofounded in 1865. many say this would be a likely scenario. the talk emerged and they put out a statement saying, they will take a positive attitude should they decide to move back. again, they say they have links to hong kong. jonathan ferro: is the retail spinoff dependent on them relocating to hong kong? stephen engle: interesting question. we don't know. we heard from the chairman saying that the wheels are in motion for a potential move.

again, there is a bank lending issue. other banks standard chartered, there was similar moves afoot there. there is nothing set in stone. the chairman has not set things in stone. hong kong is a market that is full of speculation. the story did not cite sources for that. it got a lot of speculation going. jonathan ferro: thank you very much. -- overseas assets globally. melissa to the stories and it is six years since the crisis with regulatory headwinds. it still seems to be shaking the

sector. >> there is a headwind environment and they have to bring down some of the leverage ratios and protect the retail banking side. now, we have investors and owners saying we have a high return on equity. it is hard to do everything we are seeing now. ultimately, i think this is good for them. this is banks try to work out where they can make improvements. ultimately, the stock market seems to like it. jonathan ferro: it likes it. what am i trying to play. >> small banks in europe are looking at it. look at the regional banks in

italy. there is a trend across the continent. we are seeing banks reform almost at gunpoint from governments being told to do so. this is unlocking value. there is something positive for financials. >> we have heard they may spend -- spinoff the retail. we will see consolidation in italy. many people expected to happen. when do you expected? -- expect it. >> it is not just restructuring. look up the credit demand indicators and the loosening of financial conditions. the ecb has been trying to get stimulus for parts of the eurozone that are suffering. they are spreading and it is

narrowing over the last 3-4 months. you are seeing the effect of monetary policy. jonathan ferro: another trade. david will stay with us. i will bring you more on that and the aftermath of the finance minister. then, zero gravity on the shanghai composite. stocks keep climbing. details on the feud that took down the chairman. ♪

>> this is on the move. the nation wants to scrape together enough salary. it is fair to say they have failed to make meaningful headway. everyone seems to hate the finance minister. he finds himself more isolated than ever. he had a location -- a quotation from fdr saying, they are unanimous in their hatred for me and i welcome their hatred. now, what for greece? he told me the differences were

emerging and they look as wide as ever. >> not only the leeway and the time they gave. there was ambiguity coming forth with a technical reform. it has gone dry. greece is cornered. we will see the next few weeks with greece being really cornered and having to get strict proposals. all of the red lines and have been talked about for so long. the government is facing issues. the elections were a trend and there are positive opinions.

now, if feels like anger has increased and it is up from 7% one month ago. now, there is all this tension and instability. they could have the prime minister saying if we do not have a solution to soon enough greece will have to take measures. at the moment, they are reluctant to do so. jonathan ferro: they will run out of money. you talk about this and we finish by asking, "when will greece run out of money? " they keep reaching behind the sofa to find a few more euro. >> it can go from may to june. it is crucial to look at the

cash flow equation and the entities. to me, even if greece has -- there is the possibility of a accident on the way. there has been discussion of a haircut of collateral with greek banks to tap into reserves. let's keep an eye on that. jonathan ferro: always a pleasure to have you on the show. still with us, david. let's deal with the politics. the bar is pretty low. the differences were converging. it was a brutal meeting. >> it is very worrying to see

this where it is closed and the daggers are drawn. both sides have different things they are playing too. we learned this with the debt ceiling debate a few years ago and we are seeing the same thing now. greece will find a way to stay in europe. it is probably more than what was done all along. doing things you don't want to is what you have been asked to do. >> we thought democracy had a huge risk and this was a huge story playing out. i look at the message to the

anti-austerity parties. >> it is working. >> you could point to that. the numbers have fallen a little bit. i think you are seeing the realities of power. there is popularity at home and they are struggling to maintain the support base. ultimately, they have pulled some economic sovereignty and it means that you have to play ball with some of them. you have to bang on and have a new solution. >> i was looking at the flow of european equities and it is up 70%. the investors don't seem to mind the politics.

>> they are supported by the situation. look at fixed income. they have negative yields right now. the investment grade inside the eurozone is about 1.5. it is simply not enough auctions. they look to equities for example. i would still shy away from corporate credit. i think it would suffer badly if there is an accident. on the corporate side, you have to love equities. jonathan ferro: does david love china? we will find out next. when do chinese equity meet gravity?

we will discuss this after the break.

jonathan: good morning. welcome back. another day and another pop on the shanghai composite. we have to do it. take out the chart.

there are whispers that they could start a program with government bonds. if eggs the question. will gravity zero stocks come back into orbit? you saw the same report. considering we can call it qe when the rate has enough space to work -- >> absolutely, that is what the market is reacting to. it was there to lower key interest rates. there is so much more they can do in traditional areas. you have to think that that is the way they will go. i still firmly believe they are going to want stability and they do not want output. they want to encourage currency. there is stability.

they do not want it just for the stake in short-term stimulus. jonathan ferro: they are expanding the balance sheet and assets. >> to me, the cuts are not focused on the market or the external accounts. the chinese surplus is going up and it increases from last year. there is no sign of repetitiveness. the trade is improving. this is good. it is all about the money supply. when they buy reserves, they raise the ratios to prevent more money getting out of control. they can reverse that. jonathan ferro: chinese

equities? >> by a whole. jonathan ferro: we will talk about where he sees the gold price and ruble volatility. stay tuned for that.

jonathan ferro: 30 minutes into the trading day and this is how things are shaping up. hsbc is the biggest gainer. the stock price is higher and the ftse 100 is lower. the dax is also lower. let's dig into the indices and that you stock stories. carolina: the strategy was unveiled at 6:00 a.m. and

deutsche bank fell into the negative. it is all about cutting back on the cost. it is about cutting back on offices and they are going to be separating themselves. the return on equity is being cut back. it seems that the investor base is not liking it. meanwhile, on the upside, the end of a fewud. he was a chairman and former chief executive. he is going to say farewell. his wife was a teacher.

the chief executive withdraws his support and the stock rises higher. we look at the new trajectory and hsbc is up. we have the retail banking unit. interestingly, i spoke to shareholders and one of them called for exactly this. clearly, the stocks are up. jonathan ferro: let's talk about the gold revenue and to the increased production. it did not follow the same trend. gold prices compared from a year earlier.

journeying does joining us first is nick. great to have you with us. i see you and the prices are falling. i look at your company and the gold price. the revenue is up. is it a different story for a gold miner? maybe we talk about copper. >> it is to attach to. not completely. the market tries to grow production and we compete and survive in the pricing environment. >> you look at what is happening in west africa and 58% of your revenue comes from west africa. are you going to look at the play? >> we have something in west africa and burkina faso.

we have a project ready for construction and we intend to start construction this year and complete construction next year. >> the bottom line is that we would like to see more stock for the company. >> we will continue to grow and look at the market. in the gold industry, it is a quality of reserves. in different regions, we have excellent investment in northern canada. we are looking. >> i was looking at the price in dollars and rubles. we are down almost 9% in rubles. it was up 20-something percent. how did this play out? >> we have a great advantage

producing gold. now we saw the costs fall significantly. we will see the impact of this in the results of the first quarter of this year and i expect it will fall further. >> we mentioned the start of the gold prices. they supplied fundamentals and a speculative story. i look at the gold price and do you guys bothered trying to hedge? >> we do not hedge. we believe we provide exposure and we deal with fluctuating gold prices with focusing on efficiency of gold mining. we see the costs falling and we

expect further costs. >> it is a leveraged proxy. people want to trade your stock. the main owner wants to in's -- wants to increase the state. what are your plans? are there any plans to sell more shares? >> we realize the liquidity of the shares and the intention of the board is to issue more shares within the 12 month horizon. we believe we have a strong performance and we are growing production, reducing costs, and the only thing that does not allow the share prices to go further is liquidity and we will deal with that. >> we talk about russia and does

it affect? >> the russian segment, if anything the impact of the geopolitical events is the ruble being devalued. jonathan ferro: what is the message for investors. >> we have a strong pipeline and we have the attractive proposition. >> we believe the gold price will not go that low. >> thank you very much. still to come, we will keep you on the story with the volkswagen ceo and the power struggle. we give you the details of the

public's bat. -- public spat.

>> good morning. welcome back. i want to bring you up to speed. the spanish economy is predicting growth in 2015. that is some strong growth. compare it with greece and it is

a different story. he also spoke to the dutch press and there was going to be no major third greek program. the greeks have the three year note up and it was lower earlier. that is high. i can tell you that, last week, it was much higher. it is near highs that we have not seen since 2012. i will bring you more updates throughout the schmidt -- this show. a magnitude 7.8 earthquake devastated the nation. the quake killed more than 3200 people and injured as many as 5000. deutsche bank shares are lower

after announced cost cuts. the largest lender will close 200 branches and will get a return on equity. they will cut back ownership in the consumer unit and shrink security business. germany has agreed to buy in a deal worth $400 billion. the shares closed up on friday. a big focus on folks liking with a winner emerging over the fight for the steering wheel. ferdinand resigned. let's go out to the berlin bureau chief. this takes some of the uncertainty, in the short-term, out of the equation. >> you are absolutely right.

the shares are up 5% this morning and it is recovering some of what they have lost. they have dropped while that happened. they are saying it is positive because they are unlikely to pursue any more deals. they went on a spending spree and created a 12-brand stable that includes porsche and lamborghini. and truck makers. analysts are saying, if they are not spending on acquisitions, there is more money to get back to investors. finally, another thing the analysts are saying is that the resignation could speed up decision-making. some have been critical and said that the major decisions had to

be funneled through him. that is one place they have really struggled to come up with products to catch on. jonathan: what is the direction traveled. we have solved the problem. now there is a whole list of people who have become the ceo. chad: the question is what is going to happen. his family still controls of books like and. as a member of this family he has control. in theory, there is veto power over the decision-making at the company. it could be that he has become chairman. on the other hand, he fought against him and wanted to remove them. it is hard to see where he would

get his approval. there is still a lot of uncertainty. let's not forget about the seats that need to be filled that have tended to go to the controlling family. they have to find agreements with who fills the seats. it was wolfgang who lined up against is cousin and there is obviously a lot of bad blood. what is going to happen with the family remains an open question. jonathan ferro: thank you very much for joining us. a little bit of confusion over the last couple of weeks who leads the company and plenty of confusion over who'll the did this country. let's show you the show down. where do we stand? joining me is anna edwards. once again a weekend filled

with the snp and the labor. >> good morning. it seems like he is ruling out any sort of deal between labor and the smp. he says any labor budget would be written by labor. now, standing as a candidate for them in westminster. he says, if there was a speech it would be written by lieber -- labor. what is the endgame here? they talk about the policy to benefit the united kingdom. at the same time, they are not able to rearrange that declaration and he made last year that it was once in a lifetime. they have not ruled out putting

another referendum in the manifesto. it seems that the smp -- snp is a live issue. jonathan ferro: david cameron is fighting off the criticism that he lacks passion. anna: he says he would like to support one football team that was supposed to be his and it was the wrong football team. jonathan ferro: he became a western supported. different colors. anna kohler -- anna: they asked him why do people ask you if you

have passion and a lot of people doubt you do. he said, i don't know. my favorite quote is him saying, if you want excitement, go to greece and if you want showbiz go to hollywood. he was unapologetic that the elections were going to be about this. jonathan: it has stood out to me and everyone following this election. over the weekend, the focus for labor is labor shifting and i watched several interviews over the weekend. not one of them could justify the rental cap. the question is, why wouldn't i hike the rent before the term. they are not going to do that.

do you know how difficult that is? and how: -- anna: they are talking about stamp duty and cutting stamp duty. we are back where we started with election campaigns. you had labor and the conservatives mixing it up. you had a long-term economic plan and they were talking about the economy. they were making no apologies for. david cameron will be launching a manifesto and things that small business cares about. ed will talk about the rental cap and the housing bodies that are still very much at the center of things. the highlight for me today is david cameron being interviewed

on classic.fm. he will admit to crying at the sound of music. jonathan ferro: thank you. anna edwards, thank you very much. the ftse 100 is lower and we are of by 0.5%. have a look at big movers. another big mover is when they review their headquarters. they could potentially be looking at selling the u.k. retail unit. the users -- the losers are down. we will talk about that. join us in two minutes. ♪

jonathan ferro: good morning. welcome back. it is almost it. the pulse is coming up. we are joined by guy johnson. so much news. guy johnson: very busy. jonathan ferro: very busy guy johnson -- busy. guy johnson: they're trying to

figure the message is for the institution. i think shareholders voted, to some extent, with their feet. we are going to take a hard look at what they are trying to do here. this is the second big strategy announcement we have coming through and the first one really did not work. what is it about this one? the stock prices are down. the numbers do not make a lot of sense. we will look at that. we have an analyst from a company coming on. 55% of greeks think they have a positive sentence -- sentiment. i expect the people who were giving him a hard time would love to have the approval rating. jonathan ferro: this is coming

down. look at the political situation. the support in greece is, we want to stay in the euro. i imagine that the mandate will change in the coming weeks and months. people took to the streets and said, you know what, we don't like this. guy johnson: it will be interesting to see if it comes to that. jonathan ferro: everyone is talking about political risk and what it means. the situation may not be a situation at the end of the year. guy johnson: spain has regained competitiveness and is pushing for a slightly stronger growth numbers than even the bank of spain is pushing for. so, you have a positive

alternative in spain. kris does not have it at the moment. there is more of the same coming out. it is another option delivered by cerezo. nevertheless, we are in a situation where there are not many other options. jonathan ferro: there is a message and the key is growth and they need reform. he has interest in a great situation. spain and a gdp figure not resonating so much. jonathan ferro: this election has been dominated by people talking to their base. that is talking to the base. they are maybe trying to re-energize the group. there is nothing taking people off of their base tonight.

jonathan ferro: looking forward to that. the stocks are lower. it is higher by 42 basis points. if you want to follow me on twitter, im there.

guy: shares fall as germany's biggest bank announces plans for a massive overhaul. francine: power steering. after more than two decades, the top of the w resigns. guy: the search for survivors continues as the death toll in nepal rises. the imf and governments around the world rush aid to one of asia's poorest economies. we will bring you the latest from kathmandu. good m