manus: good morning from the city of london. this "bloomberg daybreak: europe." is "bloomberg daybreak: europe." -- this is "bloomberg daybreak: europe." called for the e.u. to drop all tariffs and subsidies. he says america is ready to respond in kind. may takes control. the u.k. prime minister is now directly overseeing exit negotiations, reinforcing her to thestay close european union. the pound gains. , seeinguarter results

revenues fall sharply. the breakdown the earnings with the deutsche bank ceo at 9:30 u.k. time. ♪ manus: a warm welcome to the show, another bank, another set of breaking headlines. 1.60 7 billion was the number on the line. in the brazilian real has been the real hit. does the performance on santander -- there is the performance on santander. ahead of the estimates of 8.30 8 billion. think about ubs, way up there in the single digits. we just heard from deutsche

bank, reducing risk-weighted assets. this is one of the perhaps most challenged capital position banks out there. terms of net income, 1.7 billion is a beat. net income is a beat. the second quarter is a beat. limited equity for number is 10.17%. so it beats the highest of the high estimates. that's the key point to take away. deutsche bank delivered a curtain raiser, if you want to think of it in those terms. a couple of weeks ago, the stock rally. gives us a hint of what was on the agenda. let me recap that for you. did they lose any market share? result revenue drop 17%. all the editors are there.

it gives you the challenge they are under. your today, down nearly 13%. ficc is down, the guidance said it would be slightly lower versus lower. they have let people go, 1700 people have left the bank in the past quarter. asset management has seen outflows of 5 billion euros, but net assets under management rise overall in the second quarter by 14 billion. asset management is unlikely to meet the flow targets. these are some of the warning shots, the bull and the bear coming from the marketplace. that me take you to the risk radar because this is how the market looks for you this morning. bellicose rhetoric from donald

trump with regard to iran. is he stepping back, or ready to do a deal? more earnings coming through this morning, building on to that story. the aussie dollar is down, cpi comes in lower than the market expected. nymex crude is a little bit stronger this morning. a drawdown on the inventories there. keep an eye on the crude market and the iran line. we have a great distance travel on irantrump rhetoric and doing a new deal on iran. nonetheless, the world market is a little better off. this is the selection of voices we have for you. if you want to understand the nuances.derstand the we will talk about capital and hosea ahen i speak to

little later on. mccall, and then you have the banking to be all banking. this man is probably the most focused in terms of what he says around the european banking stage. christian sewing joins matt miller. juliette saly with the first word news. juliette: this president donald for the e.u. in america to remove terrorist between each other, tweeting the european union is coming to washington to negotiate a deal on trade. them, dropdea for all tariffs, barriers and subsidies. hope they do it. we are ready, but they won't. that comes ahead of a meeting later with jean-claude juncker.

will simply discuss possible solutions. >> they sound nice, but they are rough. they are all coming in to see me tomorrow. they are all coming to washington. to change, iant said good, we are going to tara millions of cars. u.s. carmakers announced second-quarter earnings. meanwhile donald trump has tempered his red toward iran, two days after he sent an all caps warning of future conflict, addressing the national convention of veterans of foreign wars, the u.s. president to credit for pulling america out of the iran nuclear accord but says he stands ready to come back to the negotiating table. theresa may is taking control over brexit negotiations in a move that reinforces her drive to keep close to the european union. the decision sidelines a troublesome ministry she created two years ago to lead the

british withdraw from the e.u. it falls months of tension between david davis and her chief europe advisor, who she increasingly turned to for a device. laos, the search is continuing for hundreds of people still missing and deadly floods on monday. a south korean firm helping to build the project said it had warned the government and began evacuating villages as workers tried to avert disasters. engineer struggle from her's 24 hours to try to prevent the inundation. global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the .loomberg at top we are seeing a second session of gains and we had that pboc put the one at the lowest level in over a year.

hong kong still looking very solid. the nikkei boosted by a weaker yen and solid movement coming through in a number of other markets. korean stocks coming under a little bit of pressure. let's look at some of those korean stocks. we just mentioned that dam collapse in laos. company listed on the main korea exchange has been down by as much as 6%. pressure, under falling substantially after posting a second-quarter loss on panel price decline. mgm china jumping the most since march 2016 and head of earnings. we've been talking about the slowdown in the overall chinese economy but it looks like the macau casinos are holding up quite well. more breaking news in terms of the ship side of the

business in europe. the gross margin comes in at 40%, so's slightly below the consensus estimate. third-quarter revenue will rise by about 10% on the month. second-quarter net income a comfortable beat on the market estimate of 249.7. second-quarter revenue pretty much in line with what the market had expected. taiwan semiconductor saw lower capital expenditure. that's what they told us they were worried little bit about, capital expenditure going forward. we will see if there's any forward-looking statements. on the other side, we have clarion, one of those bellwethers. have a gone to a slowdown? we're hearing that from some of the reports.

they have in with their 2018 outlook, confirmed with first cap sales. it's a beat on the top line on sales. net income, 211 million swiss francs. themfortable guidance for on the forward look of the market. we started the day with deutsche bank. we talked about the second icc.ter and f the asset management arm also saw that outflows near 5 billion euros. the ceo gave his summary of the saying we prove the resilience of our global business. we are making important changes to our core business as

promised. read it in the right direction on cost and our balance sheet quality is strong. this gives us flexibility to invest in areas where we have particular strength. across thiss are story. nejra: we got second-quarter net revenue from deutsche bank, as you said, it was a beat. the second-quarter adjusted cost coming in a 5.6 billion euros. the second-quarter net number was something we did see come out when the got some preliminary results released on july 16. we saw the shares jump as much ,t -- as much as 9% on the day still one of the worst europeang of the major banks today. the crux of deutsche bank's problem is whether they will be up to cut costs deep enough to

outpace the following revenue. all,chart tells it deutsche bank revenue across the past decade. shrunk more rapidly than cost. that's a problem for profitability and investigators are going to want to hear today precisely how the restructuring, how far it's going to go and whether it will lead to that sustain profitability in the long-term. some of the other numbers we've seen come through, internal employees, some numbers coming through on the job cuts, down 1700 on the quarter. we have the trading never come through, which is key because deutsche bank revenue fell 17% in the second quarter. this is something investors will focus on as well. the one number coming in was good news in all this. it's at profitability in the

restructuring, the details of that would be in focus. there were questions over how one.was down to manus: the devil is in the details. of roy london asset management is with us. you go away for couple of months and you come back, and it goes on holiday. holiday.oes on numbers, profitability and wealth management doing splendidly. if you look at this, however, you see deutsche bank trailing as the real laggard. seve? have faith in >> part of the problem comes , and ae credit rating

number of institutions have a series of levels we can trade to that bank. levels, go below those it makes it difficult to carry on the volume of trade we were taking on in the past. it's a simple as that. dws disappointing is the side of things. that has been the powerhouse of that business, as a former employee it's fascinating to see the evolution of that business. about a backward step is a surprise. a separately listed into two now so it will be interesting to see what his plans are. and youritical driver can see some form of normalization there, whether they go through additional that gives you,

some form of comfort that the outlook will improve and we will start to see credit ratings improve again. that is critical for their business going forward. yous: to stop people like from withdrawing the counterparty risk. do you think putting your insight had on, where else would be up for the change? if you had that opportunity to say i worked here, i know where the demand is. >> it's trying to do too many things. clearly took a decision to step back and focus on high net worth and asset management business. it's a simple metric but it's a great way -- that's what we use as a role of -- rule of thumb.

i suppose the line would be there is no statement when it comes to restructuring institutions. the first reaction, disappointment and the numbers on the asset management side. we will bring you the opening calls later. coming up on the show, we've been talking banks. we have two more exclusive interviews for you. justifier capital, sir. interview with christian sewing. this is bloomberg. ♪

manus: that's get the business flash with juliette saly in our

singapore studio. has said deutsche bank its second-quarter revenue fell by 17%. the troubled lender reaffirmed its near-term targets and said it was on track to cut its workforce i-93 thousand. we will bring you are exclusive interview with deutsche bank's ceo christian sewing at 9:30 a.m. u.k. time. the chinese consumers appetite for french luxury goods surged during the second quarter. the world's largest electric company said sales rose 11%, beating analysts expectations. the paris-based owner of louis vuitton handbags and sapporo cosmetic reported double-digit increases. all or parts of a belgian insurer in what could be its boldest move to expand its international footprint.

there talking to advisers about alternatives, including teaming up with a partner to with the belgian company or increasing its current stake. it has a market value of 8.9 billion euros. toresentatives declined comment. that's the bloomberg business flash. thank you very much, juliette saly there. ahead of the meeting with the european commission in washington, president trump has tweeted that the e.u. and the u.s. should drop all tara barriers and subsidies, and that washington is ready, but thinks that russia won't do it. this comes at hours after he said on twitter that tariffs are the greatest. dan, good to see you this morning. what can we expect from today? the twitter rampage is the ramp up to the face-to-face.

how do you think it will play out? dan: the e.u. is basically going in there, trying to do damage control. e.u. a foe, and since then has been going after them on twitter. e, threatening tariffs on car imports and things like that. said ontly what trump twitter, but the e.u. will be fta or to cut a narrower look for some kind of agreement between major car x orders -- car exporters, but overall, basically trying to mend some of these fences and bridge the gap between the two sides. , as youridging the gap

said, there's a great deal of distance between the bellicose rhetoric and of course, delivery. thank you very much, setting the stage. later we will talk to the cfo of general motors and ford. what do they have to say about tariffs? those gentlemen will join the bloomberg team later in the day. morning isost this xick stevens -- trump and are boiling frogs in a trade war pot, but here is what they go on to say. it looks more like trench warfare of 100 years ago than the blitzkrieg.

tactic designed to disorganize the enemy. is it getting worse? kill risk ofin the trade wars in the hilliard's world? >> trench warfare feels like it. trump is calling out and saying i want free trade but i wanted on the basis of free trade for everyone. you know the controls and restrictions exist going into those markets. he is saying we are happy to open our markets here if you are happy to open your markets to us. that is the long and short of it. the point of going after that sector today, you massively subsidize the sector. we've got to find some form of alan's terms of how we trade. , the u.s.ro quo

regulator saying you cannot compete in the united states and they slap a large fine on you for ip theft. that says weance do want to create more of a level playing field. thatalways had an issue airbus is subsidized by european governments. we all know that is total nonsense. there is always going to be some -- is trying to get that basis of an equal playing field for both. it's just not going to happen. you could possibly move the dial, and if you move the dial you could move the

fantastically in regard to equities. but the realities of the day, have a look at this. pmi alonge european with economic sentiment. i is beginning to rollover, would say for a variety of reasons. but do you lighten up on europe on the prospect of, we are not at the end of the road for trade wars? look at,u've got to and i said this in my note to you this morning, always be careful on what data point. because we've seen a trade balance differential between the u.s. and europe. that came through as a benefit. just a factor seeing that normalization taking place in a rolling annual series. say,probably too early to we talked about u.s. carmakers

and the cost of deal. that will be a critical factor. we will talk a lot more about mining little bit later on. ♪ retail.

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manus: it's a live shot of london, it's a glorious day. and a shot from berlin, about 30 degrees, moderately less hot than my home destination. is theresa may absolutely in charge? that seems to be the top line on brexit today. -- e.u. commissions are commissioner speaking this morning, saying the e.u. would react in kind if trump levies new tariffs. junckerjean-claude

going to offer? on german radio, the e.u. is ready to discuss terror cuts for all products. there you go, a little bit of push forward for you. it's all about the banks, and we have the conversations to cover it. us atian sewing joins 9:30 a.m. u.k. time. matt miller having that conversation. a mixed picture when it comes to asian equities. index up, you're seeing outperformance in hong kong. quite a bit of green, but it is a mixed picture in equities. the aussie dollar is in focus, weakening against all its peers.

down .3%. renminbi, the yuan steady after the losses we saw yesterday. nothing unusual out of the boj regular operation. the 10 year yield down by about the same. lookinghe picture across markets. if we dig a little deeper into the starts, i want to focus on the aussie yen. year to date it has we can against the much all its g10 peers as well. forecaster says that if we get the ratcheting up of trade tensions, and i have marked some things here in yellow, the red started tohere trump impose those terrorists. if the trade tensions ratchet

up, we could see the aussie yen drop. on.omething to keep an eye finally, i did see that some of the metals were bid in asia. , the 40 day matter correlation shows that metals are tied much more closely to what is happening in the yuan. the negative correlation has eased off a little bit. manus: a wonderful word, ratcheting markets. juliette saly has the first word news. u.s. president donald trump has call for the east and america to remove terrorist between each other, tweeting the european union is coming to washington to negotiate a deal on trade. i have an idea for them, drop all tariffs, barriers, and subsidies. hope they do it, we are ready,

but they ball. that comes ahead of his meeting with jean-claude juncker. saying they will simply discuss possible solutions. donald trump has tempered his rhetoric toward iran, two days after he sent a warning of future conflict. addressing the national convention of the veterans of foreign wars, the u.s. president took credit for pulling america out of the iran nuclear accord but says they stand ready for iran to come back to the table proved >> i with the united states from the horrible, one-sided iran nuclear deal. and iran is not the same country anymore. that i can say. and we will see what happens, but we are ready to make a real deal, not the deal that was done by the previous administration,

which was a disaster. juliette: pakistan goes to the polls today. suggest none of the top three parties will win a majority, paving the way for trading with former governments. the country's powerful military which has ruled for much of the nation's history has faced accusations of intimidating critics. it has denied the allegations. global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. then find more stories on the bloomberg at top . manus: thank you very much. the prime minister of the u.k., theresa may, is taking control of brexit negotiations and will direct strategy from her own office. the move comes after months of tensions between the former

brexit secretary and her chief europe advisor, oliver roberts, who she increasingly turn to for advice. her decision to take control of the brexit talks reinforces her drive to keep close to the european union. our guest is still with us. the last time she tried this, it was agreed on a friday and it lasted all of 48-hour's. every time she tries to take control of brexit, it goes splendidly wrong. how bad is it? look, how splendidly badly is it going, or not, as the case may be? piers: that chart takes you back to the 1970's. if you're assessed with the charts, let's redo it.

piers: that's the measure we want to watch most as investors. albeit it's a slow time series to capture. for us, and we talked about this, figure the u.k. and the body corporate, theresa may is the chief executive. she has allowed the regional director to decide what to do. i will lead the charge, this is critical for our nation to drive in asset forward. --slight services nervousness, just before thetion in 2017, she won labor elections with a landslide majority. within a month, because of poor advice from her office, she almost lost election last year.

by doing this and taking control , and you need leadership and you need leadership in a time of crisis, you've got to be sure that you actually take the troops with you. that is my one caveat at this point in time. manus: we looked at volatility's on the pound. david advocates that you buy some sort of volatility as a hedge. that --u confer with concur with that? you said the pound will be the pressure valve, the release. when we voted to leave and the pound fell through the floor, that was the pressure valve released for our economy. the one thing that makes us the most nervous is the assumption that is your outlet again. that was the immediate reaction.

people try to work out what does that mean structurally. what does international demand look like for u.k. based assets? also, the demand for fixed income securities and government bonds, etc.. -- you talk about volatility. i would disagree, i think volatility has been higher than people appreciate. end, we've short seen it get as high as 160. they are huge swings in terms of trying to think about long-term financing of the economy. that's some of the reason why the volatility is there. manus: thank you so much. comments made in a swedish

newspaper, saying the er preparing tariffs on u.s. goods. still hoping to find a solution with the united states. moderately optimistic ahead of the trump meeting. what might be on the agenda? would it be a free trade deal between the united states and europe? would it be a car deal between theu.s., japan, protecting auto industry, or as donald trump says, we are not a piggyback. -- piggy bank. facebook reports today. could instagram lift sales for the social medias second quarter? alphabet earnings lifted the nasdaq to record highs this week.

windsor,s is richard founder of radio free mobile. good to see you this morning. here we go, facebook, i don't know how much more they can advertise at me. i'm not one of their prime targets. how bullish are you in the face of regulation which i think is only going to mount? let's i think the earnings will be quite good, largely because of how strong google was on the top line. on the regulatory front from facebook, the issue i think is quite straightforward, and something really needs to change. facebook is to be much more up front with users about what it is actually doing with their data. manus: what i find interesting

was, we had that sort of miniature moment of a shakedown. , andta has been abused then the stock just kept on rallying. does the audience that uses facebook really care about their data, or just a smaller portion of the demographic, for example, me. it is just as likely to occur. >> that is a good question. so far, nothing has changed. the real issue is that quite possibly facebook might have to offer users a choice. we offer you a service, you can pay for it either with cash or with data, you choose. it would create a clear contract between the user and facebook and satisfy all the regulatory issues. the big question is, is it high , whichs such as yourself

all the advertisers want to advertise to, which go for the payment option, which could hurt long-term revenue outlook. in dubai nowving and the rent is killing me. from wallt got an a street. second-quarter earnings drew praise from wall street. that's not going to be the end of the road, is it? >> it was a great set of earnings. the other thing to note, the reason why the earnings were so good was also on the gross margin front were google has been able to play -- to pay less away. on the regulatory front, i think google has gotten away with it.

the e.u. has failed to impose the one remedy that could actually make a difference, to force into unbundle google play from all the other services. is going to make sure the google services are on the front and center and set by default, which really means not much is going to change. manus: let's see where facebook delivers tonight. the santander cfa joins me for an exclusive interview. and the restructuring cases still not universally on target. global transaction bank appears to have turned a corner. there's good reason to go into the second half with heads held

high and that leverage reduction has cost us some of the revenue, as we were discussing earlier, ,t's about counterparty risk having capital to secure your town or parties continue to drive risk to you. christian sewing joins the bloomberg team just after 8:00 a.m. this morning. this is bloomberg. ♪

send hand or income beat the highest of analyst estimates. the spanish bank is confident it will achieve its 2018 goals. exclusive an conversation with the ceo of santander. thank you very much for joining me. ,hat i would like to know is how does the credit growth, the lending story stack up across

the business? good morning. the first quarter in many quarters when we saw positive long growth in all our developed economies. in the u.k., we had long growth of over 3 billion pounds. spain,positive growth in in europe, and the u.s.. obviously we continue to see strong growth in america. the elections in brazil would will have in october. we saw healthy growth in latin america. this is positive growth in the number of loyal digital customers which group 20%. europe,cular, in

probably the best quarter we have seen in a few years. more toet's dig in those numbers. the best quarter in a number of years in europe, is that the domestic market in spain for those numbers? jose: we saw positive for an growth at the end of quarter, but also in the u.k. we've had , butnly mortgage growth consumer lending in europe. positive voter growth there. it was across the major economies of europe that we saw positive credit growth. manus: can i ask you whether brexit has impacted any of the lending numbers in any way in your u.k. business? jose: we have a very strong bank in the u.k. that is performing very well, serving more and more

customers. we continue to gain the loyalty of more customers in the u.k., and that is our main goal, to be in one place to support customers. we have the necessary plans in place. manus: plans in place for a hard brexit? have you got a plan in place for hard brexit? jose: we have a local bank in the u.k.. our continued focus is to serve our customers. we don't need to make any special plans, but make sure we continue to serve our customers the best way we can. manus: let's circle back to brazil. currency is down and has taken a battering versus the euro. how are you compensating for

that? the capital added ray show, so we are not impacted by that. profits.edge our the profits we bring, that are generated in local currency when translated into euros are also hedged. the most important thing is the commercial transportation that we carried out in brazil and last couple of years is bearing fruit. we are gaining market share. we have the most competitive bank across all segments in brazil. today we have, i think, the top bank in brazil. manus: just looking at the election front runners, how

one frontare you that runner could discontinue some of the big reforms that will affect the growth story of brazil and of course, the currency. are in october. it's very important to remember in brazil there is a second round. so it is still very early. i don't think it is time to speculate about the outcome of the elections because we are still a few months away, but we are confident that the institutions in brazil have demonstrated to be very strong and will continue to be strong. tell ort's too early to talk about elections, but it's a very strong and healthy economy. manus: back to spain, the government are working on a new tax between 2% and 10%. as the government consulted you

on the prospect of a tax levy? jose: at this stage, it is all speculative. we don't know the exact terms of the steps the government might take, so therefore we will not speculate on the impact. it's very early. approval needs to go through quite a lengthy process, which actually has not started yet. so i think it is very early to speculate on that right now. of santander, thank you for sharing your thoughts with us as morning. we had a little bit of ubs yesterday. at a:ian sewing join us 30 u.k. town. it's all about the banks. we just heard from the santander cfo from brazil.

saying santander is the most competitive bank there. let's get to our emerging markets editor, good to see you this morning, justin. talk about the lira. rates.dn't raise bad call? >> certainly a very surprising call. i think most economists would say that is not the right call. the central bank has been perceived to be potentially behind the curve. therefore we might be looking at an emergency rate increase, out of schedule if you like. whether president erdogan is going to allow that to happen or not is of course the big question. manus: we have a

coming out from trump on iran. i'm paraphrasing, that he could be ready to do some kind of a new deal. better bid this morning. to that end, do you think it potentially shifts the rhetoric dial? a new era of discussion may be on the cards? >> that's what it looks like, but it does seem to adhere to president trump's playbook. the stakes with iran are considerably higher, because it is a huge oil exporter. it has a pretty diversified economy and so on. of course it is a major player in the geopolitical stakes. at the end of the day, i don't think it will have a huge impact on oil. not much of a reaction after all the rhetoric got out of hand in

the past. i would not expect any moves after this, either. justin.hank you, carolyn mccall starts the investigation on the i.t. results. that is next. this is bloomberg. ♪

manus: good morning, i'm manus clary. this is bloomberg and these are today's top stories. trump's burst straight ahead of a meeting with jean-claude juncker. calls for the eu to drop on tariffs and subsidies and says america will respond in kind. may takes control. u.k. prime minister is now directly overseen brexit negotiations. deutsche bank exclusive. the trouble german bank .eaffirms the near-term target

ficc revenues fall sharply. we break down earnings with the new ceo at 9:30 u.k. time. warm welcome to the daybreak show. anna is away and they let me back in the studio. it's good to see these markets but they are unfortunately not roaring ahead. there's a small canary in the inflation call mine. it came from the on -- australian cpi. it seems as if donald trump is hunkering down for the long haul. it's almost like boiling frogs. breaking news for you.

equities are set a little bit lower. queen of the airlines and now she's in charge of itv. these are the numbers of carolyn mccourt. the market an estimate of 1.4 9 billion. profit 354etax million. the avid is 375 million. adjusted earnings per share their of 7.1. a broadly flat economic uncertainty. something the market isn't going to be hugely pleased about. you have to love ireland. cup.ave the world this is the performance on the

past three month basis. well?ertising alive and how much money will she spend in terms of her overall budget for content? the world cup, yes you have love ireland. more than two series to make your money. 10.9 one billion pounds for vodafone. -- 10.91 billion pounds for vodafone. revenue comes in a plus point -- plus 0.3%. that is a beat. they are getting aggressive in terms of competition in italy. doing aggressive promotions in

spain. holding onto market share in doing the deal. adding that in and really bolstering the position. let's give you a quick line on wizard. they are confident they can hit their target of 310 million euros. ceo joining the at 7:30 u.k. time. to have a quick check in on the bond market. ,he overall tone of the auction you're seeing rising rates come up through that. stocks are lower this morning. things are ratcheting up. point.the first the second point is younger is going to the white house today. what will the u.s. offer? what would the europeans have to put on the table to donald trump

to try to get a de-escalation of trade wars? we will talk to the automakers in the united states. we will have to understand what tariffs are doing in reality to the market. bond futures are higher. up.t.'s are it's all about the proclivity or desire to take short data paper on to your book. they beat the average analyst estimates. our first interview of the day. it is carolyn mccall. great to see you this morning. i'm paraphrasing here, we are going to see total advertising revenue up on a nine-month basis at the end of september by your saying broadly flat due to economic uncertainty.

talk me through your sentiment for the advertising market. it's alive and well in the real. your outlook? had a reallye strong first half as you have already said. total revenues up 8%. up 3%.d revenues studio revenue business of 16%. a very strong first half. nothing's really change in the economic environment for us. were is having the continuing 2016tainty since june of is making advertisers cautious and prudent. there no real change. a bituarter is always weaker especially when you have the world cup and love ireland. we were performing extremely well before the world cup and love ireland.

we have big entertainment shows. britain's got talent. all of them have been big performance for us. ireland all about love and the world cup which have of course been extraordinary. manus: good to spread the love around. waiting for the call for mobile and. it's the in-house joke. budget in about your terms of how it stacks up. you know the numbers. how much more budget are you going to allocates to content? carolyn: let's be really clear about this. the netflix budget for aogramming is worldwide totally global budget. it has to work in every country across the world. onlyudget is for the u.k.

and we are masters of using that budget to get mass quality audiences which are brilliant for viewers. viewers love our programs and that is really and for advertisers. we are doing a completely different thing. it's not for subscription video-on-demand. it's for all our channels to broadcasting get those big audiences and those policy audiences which advertises love. it's a very different thing. it's apples to paris. to pears. manus: you've been in the job since the start of the year. obvious lowmost hanging fruit that shouts out to you, i need to change this. what is the top line of the strategy going forward? it's strengthening the great business we are to have an broadcast, investing in the hub

because people are wanting to watch our great programming anywhere at anytime. the convenience becomes very important. that investment will be about making a great research. . -- a great user experience. it's not new but it's different for itv. we have been a viewer channel not a viewer -- not a consumer business. all these viewers are fans and want to engage with us or deep way. they buy a lot of stuff from us but it's not in any cohesive way. unite going to set up a that's just looking at consumer revenue. we will be improving the proposition. we will be taking money from content.

we will be taking money from a profit pool which we haven't really done before which is consumers. that could be a competition of live events and competitions and things like that. that's another growth engine for itv. manus: that sounds very familiar. you and i had a chat many months ago. you had a different hat on. you're clear about the demographic you were chasing. it's a clear vision of who your audience was. at itvs hard to do that as it was at easyjet? a global hat now. what is the demographic the you really want to focus on? carolyn: let's be clear. on our broadcast business, we are u.k. business.

in our content business, we are a global business. when we are doing our programming for the u.k. market, we are only a domestic business but we have a global content business which is highly profitable and is growing. easyjet.lar to it appeals to everybody. actually, everybody watches itv. you said that yourself. we are going to be going after light viewers. one into 16 to their divorce in this country watch love ireland. that's an amazing figure. the noise about young people not watching tv is not right. if you do the right programming, you get the right results.

that is a focus for us. we are very strong on the male demographic, there are loads of things. the kids demographic. we have mass appeal. we can do these massive audiences of tennille million or 11 million is because we appeal to so many people. important? it extends our region helps us on the advertising property as well. manus: that sets the stage very clearly. the global ambition that you've got. the bbc and channel four, we understand there are discussed there. do you really want to pursue a joined up opposition to go ahead to head with netflix? or do you

want to do it on your own? strategice have a intention to launch a subscription video-on-demand service and we feel we are uniquely positioned to do that because you know willie -- people are willing to pay for another subscription service if it has the right content. we are talking to a range of partners but we will not disclose his partners are. there's nothing definitive. we have an absolute intention to get into that area. manus: thank you very much. great to see you. i miss programming right now live. much, carolyn mccall. another exclusive conversation coming up for you.

no more negative surprises in the fourth quarter and he will manage the balance sheet conservatively. tomorrow is another huge day for earnings. you will bring you our interview with the ceo of anglo american. ♪

manus: it's 7:17 here in london. just under 40 minutes away from the start of your trading day. work got forgotten who a speak to next, it's the deutsche bank ceo at 8:30. he is on the analyst call at the moment. frankfurt ons in the results. good to see you this morning. he's trying to give the message perhaps that he has steadied the ship but it's the ficc the market since be focused on. matt: that's right.

the issue there is that deutsche 17% whilerading fall peers, others, the u.s. so again. the question is why, i put that question to him. you'll be the see that answer in about an hour's time. bottom line and what he is called best telling analysts on exitedl, deutsche bank its commodities business in the last year so that's part of the shortfall. they are trying to restructure or reshape this business. on headcount, when you cut down on revenues, or when you cut down on headcount you'll see a drop in revenues. it will create volatility in the space. you're going to see that across the businesses. we look for to that

coming up. business flash with juliette saly. the chinese consumers appetite for french luxury goods have surged through the second order. the world's largest luxury company says sales rose, beating analyst expectations. the owner of louis vuitton says they reported double-digit percentage growth. a consider for parts or all of the belgian insurer. that theyhas learned are talking to advisors about alternatives including team met up with a partner. agaes as as-based market value of 8.9 billion euros.

italia undersea cable business is among the assets the phone carrier is evaluating for sale. bloomberg understands that the warmer phone monopoly is contemplating ways to free up cash to cut debt and pay dividends. the company is also looking to refocus on the phone market. a spokesman declined to comment on any possible sale. ivanka trump is pulling the plug on her fashion line after year and a half of sporadic controversy over potential conflict of interest. the president's daughter and white house adviser that she would wind on the company. she made the decision after some big-name department stores dropped her brand but said in an enough statement she did as a mercy to her employees. this is your bloomberg business flash. manus: thank you very much.

ahead of a meeting with the european commission in washington today, president eump has pleaded that the and the u.s. should drop all tariffs and barriers and that washington is ready. he thinks brussels won't do it. this comes hours after he also said that tariffs are the greatest. considerith us now to are they? in couldg facetious tariffs be the greatest thing ever. the mliv team wrote a lovely piece. stayrade wars are here to and they look more like a trench warfare of 100 years ago them with the of world war ii. what do you think younger could offer to trump -- what you think junker could offer? >> he's on a mission to try to stop the u.s. from imposing

tariffs on all toes and he will probably put forward a multilateral deal. and may involve the u.s. and the european union but other -- but also other countries. i'm not sure if president trump would be happy to accept it that given he is not a big fan of multilateralism and he clearly prefers to deal bilaterally. mind, trump is playing a bit of a longer game domestically given that he is facing u.s. midterm elections in november. manus: it's been a long time since the markets had to consider global tariffs. how much to a threat -- how much of a threat to the european growth story is this?

the e.u. is preparing $20 billion worth which is not much in the ima thing. saying theyssioner help phil finds the $23. the risk is the second round affect on confidence and. silvia: you're right. responsibility of the trade war is the main thing. amount to very little on the impact on global growth but the risk is that of an escalation. there are several estimates around. shockld act as a supply resulting in lower output and higher prices.

most macroeconomics see it as fairly manageable impact on growth. an increase in temperatures as seets of trade cost will growth lowered by 1.5% over a few years. yet i think this estimate does not really take into account what i have said from uncertainty. also, they don't take into account, the fact that global change that supply chains and become more integrated and their destruction good of a long asked best long-lasting impact. or we get hiss view of the summit.

he will set the mood for the back half of the year. he is a man with the odd surprise. i've seen a few in my time from him. what do you think the tenor office conference will be? serious. think will be manus: the hawks take a backseat? he'll is tries to convey a sense of stability which is the -- during a time that is notoriously volatile. they are happy with the decisions they announced in june. also providing a fairly balanced look at the economy. we have seen recently an improvement.

they will also highlight the recent trade tensions. thank you so much. it's been a busy show. , shea dall'angelo continues her conversation on bloomberg radio. stay tuned for that. we have another interview for you. the deutsche bank ceo. you the top lines from that particular ceo. keep in mind, a couple different markets. spain is doing quite nicely. luxury goods will be a focus as well. boosted second quarter impressively. i haven't been buying their products in dubai. futures are nervous and skittish.

i would be skittish, i would be nervous. that's it for our team. open" is up next. ♪

>> good morning. we are live from the european headquarters in london. i'm mark barton. matt: deutsche bank reports a 7% drop in fixed income. i have an interview with the ceo. we will bring you that live. cash trade less than 30 minutes away. mark: