welcome to "street signs." i'm louisa bojesen. >> i'm carolyn roth. these are your headlines. >> banks and basic resources driving a relief rally in europe. crude turning positive as the market gets used to the concept of no deal from algiers. >> deutsche bank sells its abby life business. the asset sale helps lift shares amid a choppy week for the german lender. first class delivery for uk

mail. deutsche posit agrees to buy the rival. a former finance minister tells cnbc that the former greek prime minister has less authority than council. >> i can assure you, if you were going to sign a contract like that with me, you would become my slave. hi everybody. good morning. listen, deutsche bank, we just need to make viewers aware, we're seeing a relief rally today helped along by the news of its abby life unit. the stock is also supported by comments from the lender's ceo who refuted all reports of state aid which drove the share price

to a record low earlier this week. just be aware that we are seeing those moves in deutsche bank this morning. also banks just coming back to euro europe. >> you have to wonder whether all of this is a technical bounce back from the heavy selling, all the short positioning on the part of hedge funds. so is it more than technical? do investors see value in the stock? do they think the bottom has been hit? we don't know the size of the fine. we know it's probably not 14 billion, but it may well be 6 billion, $8 billion, that would pose a big headache for deutsche bank. reserves stand at over 5 billion. >> i have a feeling we'll be talking about this one for some time. european equity markets trading higher. seeing gape gains. the ftse up by 1.5%.

by in large we are seeing quite a bit of green on the screens today. james clemser from momentum is with us this morning. good morning. >> good morning. >> how are you? >> very well, thank you. surprised to see green on the screens. >> a bit of green on the screens. is there a reason to keep buying or do we wait and hold off? somebody yesterday said the market is way overbought. >> we have come a long way over the summer. we invest on a long-term view. we view europe as a long-term value. we have come quite a long way. it may be worth a pause from the markets, but valuation wise still not too bad. >> in terms of the issues you're focusing on, you're talking about how the u.s. is looking expensive. as are the emerging markets. you still have people willing to

put money in emerging markets. we are seeing the money flow supporting this. you're not convinced. >> we're not convinced by the u.s. a lot of good news priced in there. we're a bit cautious on that market. clearly the market is excited about the price of interest rate rises, what that means in terms of the economy in decent shape. conversely, i think eamericans markets are not too bad. still good opportunity there's, but it comes with more risk. >> all right. you're going to stick around. i want to talk more about oil prices. oil reverses its losses after a steep decline in yesterday's session as hopes of opec producers reaching a deal were dashed after iran rejected an offer from saudi arabia to limit its oil output in exchange for riyadh cutting supply. the wait continues. we're looking now at november? >> carolin, the ministers are

continuing the conversation. yesterday they were trying to set low expectations saying there wasn't going to be a major deal done here. this was a prelude to the event coming up in november with the meeting of opec leaders. it's interesting to note, we had positive signs from the saudis going into the meeting, a lot of positive signs that they were putting a framework up, some kind of plan in place. but we've seen over the last 24 hours a bit of push back. we know iran is not planning on signing on to any deal that would keep them from ramping up production to 4.1, 4.2 million barrels per day. listen to what the nigerian oil minister told me yesterday about the positive signs he saw coming out of saudi arabia. >> they tried to rally people around. they realized the consciousness of the initial policy. worked for a while. they're moving. we all have to hold hands and move together. >> i think we'll have to keep a close eye on the saudis here, it

seems the ball is the iranians court. with the saudis hurting back at home, we saw over the last couple days they decided to cut government salaries a bit. also decided to cut government bonuses, something that would have been unheard of before. you have to also remember we have not touched on what's happening in the private sector in that company. it relies largely on the oil and gas sector. in terms of the consumer numbers, consumers in the gulf countries are feeling the heat. one big mall developer telling me that retail sales were down as much as 30%. we are seeing a knock on in the gulf arab economies. guys? >> some bonus become cut, as you said earlier this week. goldman sachs cut its 2016

oil price forecast by $7 a barrel. cnbc spoke with jeffrey curry for his take on why opec will likely fail to reach a deal. >> two reasons, they cannot pursue that strategy of a cartel in the current environment. the reason for that is the fast cycle nature of shale. we've already seen rig rates in the u.s. are up 32% which is a haven't rebound in price. you can imagine how fast they would shoot up if prices went higher. you have never seen kcohesion i opec if you did not have a demand shock. there's no place to put the barrels, therefore they cut. in an environment where we are today due to excess supply, they don't have the same incentive. >> let's get back to james klempster. can stocks continue to rally if oil doesn't?

>> oil stocks probably not, but the market is reasonably in a good place. i mean, the questions -- there are a lot of questions about the oil market and where it goes from here in terms of forecasting it's extraordinarily difficult to forecast. we saw that in 2007 with the $200 a barrel forecast. look at fundamentals of particular sectors and particular companies, identify the parts where you think there is good value. >> how do you feel about credit? you sacred date so far is not overvalued but you see room to the upside. others argue investment grade but high yield, that has gone way too far t is overvalued. we're seeing default rates at the highest since 2009. does that not worry you? >> does, but you're well rewarded for the default rates. we have a number of elevated default rates and higher loss given defaults, in that

environment you are still reasonably rewarded. >> you still think you can generate returns in. >> high yield is a coupon play from now on. >> what kind of a yield are you getting in high yield? 3%? 5%? >> a bit pomore than that in th full part of the curve. >> all right. >> how do you beat inflation? >> ultimately you have to buy a combination of assets that are well priced. ultimately through the cycle, the vast majority of assets should be through inflation. you should get a return as a consequence of buying that asset in this environment we have the view that you won't get a real return from government bonds for the foreseeable future. if you look at the fixed income market, you should get value there, from the equity market, and other parts of the credit market. >> james, thank you very much. james, thank you very much. we have been asking you this

morning to -- among other things, e-mail the show with any favorite art pics you have. any favorite artists. we will be talking about investing in art later on in the show. find you the on street signs europe, cnbc.com, and you can mind us also at -- >> @carolincnbc. don't ask me about art. >> love it brilliant artists. keep your pictures coming. @louisabojesen a couple of you are sending some artists. this is very interesting art. i'm a bit less alien prone in terms of the art that i prefer, but keep your pictures coming in. we'll get varaouakis's take on the future of greece, that's coming up after this break.

. hi everybody. welcome back. you're still watching "street signs." wells fargo's ceo, john stumpf, will forfeit his own equity at the company of $41 million. he also won't get a salary while the bank takes an investigation into its retail sales practices. the former head of the retail division decided to quit giving up $19 million in equity. this after wells fargo paid a settlement of $185 million and suffered harsh criticism from the senate after allegedly opening millions of bank accounts for customers without approval. the market cap of the company has dropped 7% over the last month. rbs agreed to pay over $1 billion in fines for missiled mortgages but still faces a settlement with the department of justice which analysts warn could be much bigger.

rbs said it put aside $3.8 billion in january to cover itself against mortgage related lawsuits. the u.s. mortgage regulator said it was pleased with the settlement and will continue pursuing recoveries against other financial firms. rbs shares down 42% this year. congratulations to china asset management. >> starting a bit too early. guy in the middle got a head start. postal savings bank had a luke warm reception on its first day of trading as investors remain cautious. sherry is with us from hong kong covering this. it's a big ipo. why this tempered start to trade? >> thank you very much. it starts with the fact that it's a state-run commercial

bank. it's a big bank with -- that comes with a healthy balance sheet. with this ipo price, it values the bank at $49 billion. so just slightly less than that of ubs. but postal savings bank of china opening flat and closing virtually flat. seeing for the whole day, seeing the market price action of 0.1 cents. this because of the state-run -- because it's a state-run bank, there's an unwritten rule in china that prevents a state asset being sold on the cheap. so basically there's a high premium for this bank for investors to trade in. that's one of the reasons why it was so hard to float this ipo for international investors. so in order to make this ipo a success, the bank brought in six cornerstone investors, which

already bought 75% or so of its shares pre-ipo. there's that lock-up period of six months. for this company and for this stock, we'll get to see the real market action six months from now. we should revisit this issue. and get this, all the cornerstone ambassadors, six of them, are chinese companies. so we basically see chinese money, beijing's pocketbook, written all over this ipo. back to you. >> thank you very much. just want to get you a couple of flashes coming through from the head of the ecb. mario draghi talking about how good policymaking can benefit from the scrutiny. they welcome it. talking about how little is known to date of the distributional consequences of the unconventional tools they've used. mr. draghi having to answer to german lawmakers today, talking precisely about monetary policy.

maybe having to defend it as well. >> definitely. he's going into the lion's den today. should be fairly uncomfortable. >> fairly. fairly. the greek parliament narrowly passed a bill to cut pensions and speed up privatizations. the reforms are required by eurozone creditors in order to release funds which could amount to 2.8 billion euros. creditors expressed concerns that reforms by athens have taken way too long. greece's prime minister has been struggling with a weakening approval rating. i caught up with fothe former finance minister and asked if the prime minister could still turn things around. >> on the 12th of july, 2016, the surrender papers were signed. from that point on there was no greek government. if you read the momentum of

understanding between greece and its creditors passed in august of 2015 it's clear, the greek authorities commit to agreeing with institutions. i can assure you that if you were going to sign a contract like that with me, you with become my slave. that's what it means. i'm committed ed tted to agree you are not committed to agree with me. there are fewer degrees of freedom than a small suburban town council. >> so, in simple terms, 2.7% growth, and a break through in debt relief talks as was eluded to. you don't think that will happen? >> no. remember the prime minister before him and the one before him? they all promised within six months, just around the corner, we have a recovery coming. it's impossible to have recovery coming when tax rates keep going

up, tax takes keep going down, investment is negative, and the banking system has 52% nonperforming loans. it's game over. either we reboot the program, we tear it up and start afresh or only by a miracle of biblical performances can change be effected. >> just a quick thought on greece. there's still so much uncertainty because we don't know whether the imf is going to participate in the third bailout. they want to see more on the debt sustainability. they say a much bigger debt relief is needed, but then germany doesn't want to participate in a debt relief because they're going into a new round of elections next year. then we still don't know when and if the ecb will reinstate the waiver to buy greek bonds as part of the bond purchasing program. a lot of unknowns that greece has got to contend with.

>> those points there, if any one of them don't go ahead, will we have to go back and start at square one? are other solutions going to be found? it will be a mess to start over again, the negotiations processes. >> i can't deal with it. eight years of greece. >> eight years already. there are plans to raise 8.3 billion shares for steinhoff, this following recent sizable acquisitions of uk retailers. tui raised its full year profit guidance, expecting growth of 12% up from an earlier forecast of 10%. holiday bookings from britain were up by 5% this summer. despite the weakness of steriling. 1.1% fall in second quarter comparable sales for sainsbury. the sales decline was attributed to food price deflation.

they are confident they can outperform peers in a changing marketplace. and deutsche post has agreed to by uk mail group in an all cash deal valuing the british postal service at 2.43 million pounds. it will pay 440 pence a share, a 43% premium to the close. >> i had some dan danish girlfriends visiting, and they wanted to go out and drink beer all the time. it's not often that i'm out with girls who want to drink beer. ab inbev approved the

takeover of sabmiller. sabmiller voted on whether to accept the 45 pound per share offer and they have accepted it. they approved it. johnny forsythe is the global drinks analyst and joins us. good morning. it's gone through, sabmiller shareholders deciding to go ahead with this offer from ab inbev. is it a good deal? is it a good thing that's happening for shareholders? >> i think it will be a big relief for ab inbev. the beer market is a difficult place now. a huge strategy with this deal is the fact that ab inbev wanted to be in poll position in africa. it's going to be a huge relief to them. >> you say that sabmiller's performance in europe, asia, america, not that relevant. >> not really. >> it's a changing environment and it will change more. >> very much so. we're seeing the health and wellness trend really impact drinking trends, particularly in developed markets. seeing regions like north america and europe, which used

to be a cash cow for the beer industry, suddenly seeing drinking rates decline. seeing that companies rely more on emerging markets, but health and wellness is also spreading to emerging markets such as asia. even in africa, which you say is such a big growth market. that's part of the rational for ab inbev's takeover of sabmiller. heineken had some real trouble in nigeria because of lower commodity prices, lower growth. wouldn't that hit sabmiller, too? >> with africa, you're right, it's a volatile region. i think it's economically volatile. politically volatile. but it's also a huge region. if you look at the younger demographics, if you look at the population growth, nigeria is forecast to have as big a population as america in 2050. if you take into account the bigger picture, it's a huge opportunity >> we talked so much about the

emergence of craft beer. do you think that some of these big players will be caught out by the emergence of that, the popularity of that? have they already been caught out? what can they do? can they go for consolidation? >> it's an interesting question. i think they were initially caught out. they allowed craft beer to grow into a share of the u.s. market, increasingly on the global markets as well. ab inbev has a sure-footed strategy where they are buying up regional and country-specific craft brewers. it's something that could work to their advantage. they could capitalize on. and generally it's a good thing. it's a shot in the arm for the industry as a whole. >> what's happening with the soft drinks markets? it's hard to gauge if you're not a soft drinks drinker. it's hard to gauge popularity of the fizzy drinks. for health reasons, consumers are going off, but are they really? >> soft drinks as a whole it's a great time. as people drink less alcohol,

they will move on to other drinks. within that, there are certain soft drinks that are seen as bad for you. the more sugar laden ones. in terms of healthier soft drinks, things like water, healthier carbonated soft drinks, cold-pressed juices, there's a huge opportunity. you're seeing alcohol companies divesting portfolios and getting more into soft drinks, not just putting all their eggs in the beer basket. >> i didn't know water was considered a soft drink. >> i was thinking the same. it's good to have a soft drink. >> is considered a soft drink and one of the big growing session. s segments in soft drinks. it's considered a healthier way. >> what about further consolidation in the industry? we know heineken wants to remain independent this rebuffed that offer more than a year ago. now heineken will be a distant

second. distant third will be carlsberg. can they actually compete? >> it will be difficult. heineken will probably be increasingly on the lookout for an acquisition. whether it's an acquisition of another brewer or a soft drink company. we talked about the importance of soft drinks going forward. so i think they'll find it hard to compete if they just stay on their own. >> johnny, thank you very much for that. johnny forsythe at global drinks analyst. we will go for a quick -- >> you know when you're out and they're like do you want water? it's water with cucumbers, mint, you have five glasses, and you try to do it at home, i never drink it. >> never tastes the same. . >> put cucumbers in water at home, ugh. coming up, we head to berlin where mario draghi prepares to face a grilling. and check out world markets live, our blog which runs throughout the european trading day. guess what guys, i switched to sprint.

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. welcome. you're watching "street signs." i'm carolyn ross. >> i'm louisa bojesen. >> crude turns positive as the markets gets used to the market of no deal from algiers. >> deutsche bank sells its abbey life business for 935 million pounds. the asset sale helping to lift shares near to the top of the stoxx 600 amid a choppy week for the german lender. first class delivery for uk mail. shares jump up 40% as deutsche post agrees to buy the british rival. and greek lawmakers pass reforms aimed at securing funds from creditors.

the former finance minister tells cnbc the greek prime minister has less power than the leader of a greek council. >> the greek authorities commit to agreeing with institutions. i can assure you if you were going to sign a contract like that with me, you would become my slave. welcome, you're watching "street signs." pretty interesting session in the u.s. yesterday. major markets rallied for the first time in three, saw sizable gains. the dow and nasdaq up by 0.9% each. this morning the s&p 500 seen extending those gains, though to a small extent. seen out by 4 points. the dow jones seen up by 30, and the nasdaq up by. janet yellen testifying on regulation before the house of representatives today. want to show you what's going on

in the european trading session. a lot of green. we have a recovery rally underway in part in the banking sector. deutsche bank is bouncing back from the previous losses. the recent record lows. we're seeing an asset sale this morning and also more confirmation from the bank that it does not need a capital call. the xetra dax also up 1.35%. let's look at the currency markets. seeing dollar strength particularly against the japanese yen. still barely above that 100 level. but up by around a third of 1% on the day. we saw better consumer confidence numbers yesterday. that didn't move the dollar much, but the durable goods number could be an important indicator. yesterday euro dollar did see a dip on the back of concerns of deutsche bank and the european banking sector. today that's still under pressure but that's more to do

with the dollar strength we're seeing today. @carolincnbc or @louisabojesen, get involved in our comments and our conversations in here. mario draghi is testifying today. he invited scrutiny of ecb policies saying the central bank welcomes it. he is expected to face criticism from german lawmakers who argue that loose monetary policy is hurting savers and weakening the banking sector. we saw initial comments from mario draghi. how heated will it get for him? >> i think those lawmakers he'll meet with will have a different idea about what to do with interest rates than he does. the general understanding among german lawmakers is that the track record of the ecb, what

the ecb has done, quantitative easing, buying huge amounts of bonds in the markets, interest rates close to zero is doing more harm than good. is there economic growth? there is not economic growth in countries, or not enough in a lot of countries in the eurozone. general understanding in berlin is this policy of low or negative interest rates has to find an end. only yesterday it was said what is needed is higher interest rates, structural reforms. mario draghi has a different message. he will promote the idea that countries like germany should spend more money, ie use what they call fiscal space, meaning increase the spending of the government in order to revive or

kick start economic growth. and inflation buy back. that's a second round effect they have in mind when they are urging countries like germany to increase spending, by increasing spending that would also mean that it would make it easier for the ecb to reach inflation targets. i think they won't find a common understanding of what needs to be done. but perhaps more of that during the course of the afternoon. back to you. good to see you. thank you very much. sterling has fallen against the dollar after the bank of england's deputy governor said in a speech that the uk would likely need stimulus "at some point." she added that brexit uncertainty is weighing on business investment. back with us is the chief

economist at ecb, good to see you this morning. the bank of england needing stimulus, as was indicated. are we heading down that path or is the bank of england looking at the ecb, bank of japan and saying we prefer not to go down that route? >> it's quite difficult for a central bank to conduct polls against other central banks. if you have other central banks postponing rate hikes or like the fed, or that they are planning to do more, it's difficult for the bank of england to say that we are coming to an end when it comes to monetary policy stimulus. it's part of strategy for the bank of england and uk to create a super competitive economy. to keep the sterling at a weak level, you are trying to kick start the economy after this kind of brexit that you had three months ago.

i think it's -- i think they will continue to send a very dovish message. they would like to keep sterling at a weak level. >> are we nearing the end of loose monetary policy? >> globally i think we are coming to an end of further stimulus. i think monetary policy has passed the expired date. i can see these negative effects coming out from the policies. but also that central banks are underchallenged, because i think they have to adopt to this decline in real interest rates. now when we are maybe complaining about low interest rates, i think it reflects structure changes in the global economy. high propensity to save, low propensity to invest that means global interest rates are declining. central banks must adjust policy rates to this decline. >> the problem is that monetary policy has not always had a great effect on growth. maybe in the u.s., but less so

in the eurozone. that's in part why mr. draghi is testifying today. some of the savers are still hurti hurting. what part of the cycle are we in? given that we're not seeing an uptick? how do we know where we are? >> it's an interesting question. when you look at the business cycle, this is one of the most frequently asked questions when i have a different discussion about the situation. because people are asking me where are we in the business cycle? the problem is i cannot see the business cycle. i think what's important right now, that's to come to a conclusion, what should be a reasonable growth level. if you believe in stagnation, maybe very to accept that growth levels are not coming back to the situation we had prior to lima. you could say that central banks have been successful in bringing up asset prices, bond prices, equity prices, house prices. but we have to see the real

economy moving in the right direction. more economic growth. this is a problem for central banks, they have reached the intermediate target to raise financial prices, but we are still waiting for economic growth and inflation. th we can see monetary policy effect is fading and the pressure is increasing on fiscal policy. >> so much trouble involving the italian banks, also deutsche bank. to what extent is that holding back growth and lending in the eurozone and complicating mr. draghi's job? >> that's a critical issue for the eurozone. especially when you think about the future, the recovery. 85% of all credit supply within the euro area is coming from banks. healthy banking system is important for the recovery for the eurozone. i think the problems that we have now, within the banking system, especially in the

southern part, and also looking to the future, low interest rate environment, and new competition from industry. we will see lots of challenges for the banking sector in europe. that will be a negative factor for the recovery. it will not trigger a new economic downturn, but it will be a problem for the economic recovery. >> robert, thank you very much for that. appreciate it. the first head to head between donald trump and hillary clinton has become the most watched debate in u.s. history. guess how many people tuned in? >> i know the number. it's there. i can see it. >> 84 million people tuned in to watch the first of three televised showdowns with fox leading the networks with over 11 million viewers. speaking after her monday night appearance, hillary clinton continued to question some of the claims of her republican rival. >> i'm going to leave it to the fact checkers to go through all

of -- all of donald trump's claims. there was a lot of work for fact checkers last night. but here's a couple of things that caught my attention. he actually bragged about gaming the system to get out of paying his fair share of taxes. in fact, i think there's a strong probability he hasn't paid federal taxes a lot of years. >> meanwhile, donald trump told a rally in florida he was the clear winner. >> she bragged about how she traveled all over the world. and that's true, she traveled all over the world. and you know what it got us? nothing. nothing. it got us debt and it's got us death. we have death and debt and unemployment.

we have all bad things. i said last night, i said you know, secretary, you are experienced, but it's bad experience, because everything you did turned out bad. >> let's get out to edward lawrence in washington. after the debate, before the next debate, the two candidates are squarely focused on the next big one given that it garnered such a big audience. >> reporter: this has mounted a huge interest in the united states. hillary clinton today going after younger voters. that's been a focus of hers for the last couple days or so. a week or so. she will hold a campaign event with senator bernie sanders at the university of vermont. riding that wave of energy hillary clinton has off the debates, she reminded a crowd yesterday in raleigh, north carolina that donald trump criticized the amount of time she used to prepare for the debate. saying, yes, she prepared but she's also prepared to be president.

hillary clinton going on to say donald trump never treats women fairly. she said at one point 20 years ago donald trump called a miss universe winner miss piggie. in florida, trump reminded folks, hammering hillary clinton about her establishment ties saying he actually represents the change. donald trump there, you heard in the sound bite, 26 years in government he says, hillary clinton has accomplished nothing. experts say donald trump has a long way to go before the next debate on october 9th. we should see what happens between now and then. donald trump will be campaigning in the midwest today, in chicago, iowa an then wisconsin. back to you. >> thank you very much for that. the england manager, sam l allerdyce has been sacked after 67 days in charge. this after surveillance video shows him offering reporters advice on how to bypass fa

transfer rules on third party ownership. he said he was deeply disappointed by the embarrassing episode. 67 days. >> not much. doesn't help the team, right? >> kind of doesn't. >> hey, i can say anything. i'm -- i wave the german flag. right? >> i continue to wave the danish flag whenever they play. coming up on the show, the largest oil disaster in u.s. history hits the big screen in "deepwater horizon." you've been speaking to the f m film's director. we'll hear more after the break.

carolin. a movie about the 2010 gulf of mexico oil rig disaster set to hit cinemas next friday. i spoke to the director of "deepwater horizon," peter berg, and asked why he decided to make

this very film. >> there was a "60 minutes" piece that i saw that came out about eight months after the rig exploded. i had, like everyone, heard about this oil spill, heard how much trouble they were having stopping the oil from spilling into the ocean. i was moved by that. this "60 minutes" piece told a different story. how it happened. what made the rig blow up. who worked on the rig. what life was like for those people leading up to that horrific moment. and it was just a powerful story. it was a story of science. it was a story of corporate greed, and fundamentally a story of human survival, 11 men who could have gotten off that rig and on to life boats and saved themselves but chose to try to stay and battle that blowout and try and prevent the oil

spilling. i thought that was very heroic. all of that added up to a good story. >> at cnbc we spend so much time talking about bp, transocean, halliburton, this movie, is it intentional it's about the heroic efforts of those 11 people? >> yes. more than -- if you just look at the facts of the case, it's pretty obvious that bp made some mistakes. the executives, company men on that rig cut corners. they were over budget, behind schedule, and there was pressure to move on. that pressure had a lot to do with the blowout. so that's something that we didn't ignore or shy away from in terms of presenting what we believe to be appropriate responsibility, corporate responsibility for that tragedy. but that was never meant to be the focus of the movie. we didn't wake up and say let's

make a movie that attacks big business. let's make an incredible -- we said let's make a powerful story about a group of men who got into a really rough situation and then had to try to fight their way out of it. that was the thesis behind what we were trying to do. want to breing you breaking news on deutsche bank. some flashes coming through saying the german government and financial authorities are preparing a rescue plan for deutsche bank. once again, this is according to a german newspaper it will come into force only if deutsche bank needed extra capital and was not able to raise it and could not pay for the outstanding fines. the big one is the $14 billion fine imposed by the department of justice. that's expected to come down.

once again, the government still hopes deutsche bank won't need the support. these are only scenarios for a rescue that are being discussed so far. once again, i'm quoting a german newspaper article. we're seeing some improvement in the share price. this was also based on comments coming from the ceo saying they don't need a cash call, also asset sales going on. certainly this would offer some comfort to investors who may be worried that there might not be a backstop. we had all this talkbout deutsche bank saying we never asked for german state aid. the german government saying there's been no discussion about that. investors want to know there is a backstop if needed, right? >> definitely. again, the government saying it would only take a stake in the bank in the worst case scenario. you would think deutsche bank would want to avoid that for a bunch of reasons. shareholders wouldn't like something like that either. but it is interesting they chose to come out at this point after

we've seen this pretty big selloff in deutsche bank shares over the last couple of sessions to really just give confidence to share hoholdershareholders. >> we don't know whether this is confirmed. this is just a newspaper article at this point in time. thinking back in history, ubs got a bailout from the swiss government, that turned out to be a good idea in the aftermath of things. yes, there's always a stigma attached to that. we know other banks got a bailout from the german government during the financial crisis. why not do it if you're in need? >> definitely. definite definitely. investors liking what they're hearing. the freeze art fair kicking off in london next week. the auction's volume estimated at around 131 million pounds, down 29% from last year.

nazy vasseghan is chief executive of masterpiece in london. how healthy or unhealthy is the art market? >> the art market continues to be healthy. what you're seeing in that 29% downtown is more to do with supply than demand. there is still a great desire for collectors to acquire rare and quality works of art. so the downturn is more about sellers being a bit nervous about offering works of art on the open market. >> given we're in this continued period of low interest rates, even negative interest rates, the search for yield continues on and on, do you see more investors flocking into the art market? even though they're not knowledgeable, just hoping for a quick buck? >> artisan investment is by passion. there are more and more people coming into the art market every day. we hear from wealth managers that investors are looking

towards art to diverse portfolios. it's very important to do your homework, to watch the market and attend art fairs, gallery shows. >> what is particularly hot at the moment? what are some pieces or names that people are going for? >> sure. it's really difficult to predict hot names as such because art can go down as well as up. however there are certain movements throughout art history that have been overlooked if you'd like. there's a whole rediscovery of art going on at the moment. such as antiquities, antiques, post-war art is on the rise. there's a lot of room for maneuver in those markets. there's an italian art movement called "art porvera" which means poor art. >> poor art. so from struggling artists in.

>> it's artists who moved away from traditional art forms and started using basic tools in their work. so they ripped canvasses. used every-day objects. there are artists such as fontana, names like that. are people buying across the spectrum or are collectors, as we traditionally see, you hone in on one particular era, that's what you invest in? >> the spectrum is pretty large. at masterpiece we cover over 5,000 years of art history. we have a lot of different categories. what we see there when we are dealing with collectors is that they can enter the full spectrum. there are many opportunities. those overlooked areas that we touched on, especially in classical art. >> what if you're not a passionate art investor? what if i don't know a thing about the art market but you think i want to invest in that

space. it's offering more yield than other government bond markets, equities. can you still invest through an etf or through an art fund if you don't want to buy a particular piece? >> yes, you can. the really good thing about the art market is there are many, many specialists involved in the art market. so there's always someone who can help you. it's a market about expertise. it's a market that developed over the centuries. so there's a lot of choice, if you want to look at it in purely investment terms. it is important to enjoy what you buy as well. >> are certain countries in focus? for example i'm thinking the persian art market after the lifting of the sanctions. there has been more interest in that, for example. or other countries as well where art has been harder to come by, where you're seeing changes. >> absolutely. you mentioned the persian art market. you know, iran has an

unbelievably strong contemporary art offering, which should be opening up. they have a show -- traveling show going to berlin in the beginning of december which should be exciting. in addition to that, african contemporary, indian art. aboriginal art. some actions last week with aboriginal art that did extremely well. >> nazy, thank you very much for being with us. nazy vassegh. >> want to keep you up to speed with deutsche bank. we're seeing a german newspaper repo port, a big and reputable newspaper in germany saying there is a rescue plan for deutsche bank. the plan would come into force if deutsche bank needed extra capital and was not able to raise it in the markets. the government would take a stake in deutsche bank in a worst case scenario. now, reuters has been trying to reach out to deutsche bank, and they were able to get ahold of a

spokesperson. the spokesperson refers to a tabloid in germany saying state aid is not an issue. so, in a way, pouring cold water on those reports. >> also important to say, according to this article, the government still hopes deutsche bank won't need support. it's only a scenario being looked at, a rescue scenario, that they're discussing so far in this worst case scenario. looking at share prices, people are buying into deutsche bank again having been so oversold of late. we had a dire run here through september. >> in part because john cryian said in the interview we are not looking at a capital hike and we don't need state aid. earlier in the week the bank's head of communications talked down a government aid plan. >> the share price is low, that's not what is worrying us

or what we're really looking at what is important to us is our credit story which is very strong. >> all right. checking in on the u.s. figutur, 4 1/2 hours away, the futures at this stage -- >> they should come any second. >> they changed since i looked at them. the implied open to the upside. >> we saw a nice rally in yesterday's trading session. the first big rally in three sessions. maybe that can continue. >> that's it for today's show. i'm louisa bojesen. >> i'm carolin roth, "worldwide exchange" is up next.

good morning. wells fargo ceo john stumpf is giving up $41 million in unvested equity. this as the bank launches a probe into retail practices. market alert. oil prices rally on an unexpected draw down on u.s. inventories but could a meeting of of opec ministers change the game? and new statistics on the showdown between hillary clinton and donald trump. it's wednesday, september 28, 2016. "worldwide exchange" begins right now.