let's get straight to bundesbank.ach a bustleto three deal in santiago. great to have you on the program, as always. i want to get back to something you said earlier on. you say you have no doubt over the german bank solvency. do the markets have the same conviction? i cannot speak for the market, but i can very much tell you that both the solvency and the liquidity for the german banking market is out of question. when we can debate more, which is not as solid as solvency and liquidity, is the earning power and the proximity of the german banking market. again, solvency and liquidity are out of the question. francine: talk a little bit three.asel there was a very interesting deutsche bank note on the back of what we reported. is it in question in any way? is the u.s. commitment in question, and what is the german response? andreas: i would travel to santiago at the end of this month for the final meeting of the basel committee this year with a clear understanding that we reach an agreement which we then can present t

bundesbank warned investors may not be prepared for higher rates, specifically the bundesbank is looking at potential risks for lenders saying some banks are issuing loans with longer maturities locking if interest rates which could make the sector less flexible when there are changes. the solvency of german banks is not in doubt. >>> speaking of bunds bank, don't miss our interview with the vice president of the bundesbank, claudia bush, at 12:00. >>> elsewhere in germany, a senior in angela merkel's party says she will run for a fourth term next year. merkel's spokesman did not confirm the decision saying she will make an announcement at a suitable time. >>> iman wrul macron will join the race for the france presidency. he will officially throw his hat into the ring today. macron resigned his post in hollande's cabinet earlier this year. he's young. >> young, and it's a crowded field. especially when you look at the republican side and questions over where this leaves french president hollande's whose popularity ratings continue to suffer. i did talk to an investor this week who said h

we speak with the bundesbank member. welcome to bloomberg daybreak, i am anna edwards in london.ompanies to report. i have the numbers for commerzbank. commerzbank out of germany, reporting an operating profit that has increased. rose, thetio nine-month net profit has come in at 96 million up. this is what we were waiting for. the third-quarter pretax loss at 255 million. we have been expecting a loss in the third quarter. waiting for the bottom line loss number in the third quarter. loss, 230 8 million. swinging to a loss in the third quarter was expected. business lenders been unveiling its big overhaul since the financial crisis. they have a plan, spending the dividend, shrinking risky assets. a plan to merge investment bank and its corporate finance unit, that was one of the first that they are party taken. this is one of the stocks that has been punished by investors today. down 30% -- 37%. a bit of a headache for the whole sector, definitely the german banking sector where there is talk of m&a as of late. provisions for losses in the third quarter of 275 million and they do

what we think will happen is the bundesbank will say, i've got 13 billion.l then decide how to deploy this 13 billion according to market decisions. i could do it all in a month or spread it out over a couple of experience -- couple months. what i don't use i could give back to the mothership, which could reallocate the unused quota. guy: basically, say the bundesbank has a month where it can only spend six out of the 13 and it gives the rest across town. it gets spent on btp's. that's going to be politically palatable in germany, yeah? francesco: announcing it the way you just did, probably not. but if it is announced away in the way we think, meaning they're not going to tell us exactly how much they spend, they will keep us guessing. the german curve will go higher, therefore they can buy more. what goes into the other central banks will be allocated on a g basis. there will be no official breach of that concept. guy: right. wow. [laughter] the opacity in this program, they can work around it. guy: we are testing the rules to the absolute limits, aren't w

you mentioned ast joining the bundesbank -- afd joining the bundesbank.eed to take up some of their platforms and causes. on which issues is she already showing she is moving in their direction? >> currently, none of the other political parties -- because the none of theboo, other parties will do any business or enter any coalition or do any deals with them. the fact is, in terms of policy, they don't really have any. the only policy they have so far is that they are against the chancellor's refugee policies. with regard to the huge influx of people we saw in germany last year, chancellor merkel, despite her refugee welcome rhetoric and the fact that a million people came to germany last year, if you look at the policy of the current government, they are trying to crack down on the. -- on that. they are already going back on the events of last summer. i don't see the chancellor adopting any new policies. at this point it is to toxic. joe: quickly, what is the situation with germany, her relationship and position vis-a-vis russia? leader coulde next concil

we speak with the bundesbank member.

so he may want to wait longer before he wants to act, he should be getting pressure from the bundesbank to act somehow. early next year maybe we start to get some mentions about tapering. perhaps a bit too premature to say in december he'll start discussing this. >> will he extend qe in december? i think that kind of comes before the tapering question surely. i get your point about -- about inflation expectations, but at the same time we have a program that's running into scarcity issues. everyone is expecting him to extend. do you think he does that in december? >> i'm surprised he didn't mention the u.s. dollar in this respect. the u.s. dollar strengthened so much, that helped mario draghi out. he may use that as an excuse to say we don't need further qe. certainly the markets have been pricing further qe. >> because of these currency moves, a lot of that -- a lot of that has to happen quickly is taken off the table now. also if we are to see a change in the u.s., especially the expectations for u.s. fed hike have gone through the roof for december, but also for 2017. it wasn't all th

. >>> the bundesbank warned that german banks may not be prepared for higher rates. germany's central bank says the country's lenders are robust but may be underestimating risks. banks hurt by the low-rate environment have been rallying on the prospect of higher rates, but how could a rate rise pose a threat? >> the low interest rates are good for the banks in the sense that the funding costs have declined. this is also part of the balance that we have to look at. but what is happening right now is, of course, that the loans that the bank issue to the real economy and to households borrowing, these loans have low interest rates what we see in germany is these loans have an ever-increasing maturity. we now have a much higher share of mortgage loans, for instance which have a ten-year or longer maturity. these loans have a very low interest rate. of course the question is what happens to the banks if funding costs start increasing. that might be an issue for the bank. this is an interest rate risk bidding up on banks balance sheets. >> how concerned are you about the r

bundesbank president has urged people tuesday calm about the u.s. election results.al uncertainty was currently -- political uncertainty was waiting on -- eighing on prospects. >> i would stay levelheaded and calm. alibaba is on track to smash it singles day sales record after $12 billion in takings around the halfway mark. alibaba listed -- enlisted top celebrities like david beckham and kobe bryant to promote this blending blitz -- the spending blitz. died atonard cohen has the age of 82. he once said he got into music because he could not make a living as a poet and did not release his first record until he was 33. the canadian prime minister tweeted, no other artist music felt or sounded like leonard cohen yet his words resonated across generations. yousef: global news 24 hours a day powered by over 2600 journalists and analysts in more than 120 countries. let's check in on the markets in asia. it has been an extraordinary week for markets. have a look at this rally you are seeing on the shanghai composite as it closes out the session. lows wed 20% from those saw

we hear from bundesbank's president.ot only the sentiment and current behind the brexit boat but more recently the results of the presidential election raised the question of how much reductionism and isolationism will determine the future political agenda. caroline: let us get the take from europe on president donald trump. we are joined on the phone by the eu trade minister. thank you for joining us. how worried are you about the unraveling of trade deals between europe and the u.s. since donald trump's of election? is absolutely essential that the eu has good relations with the u.s., whom ever is the president. the message has to be continued. but i am worried that the new sosident is speaking negatively about free trade. that could be a problem. dead?s ttic >> i do not think it will be dead but there will be ongoing negotiations for years to come. we have to say that it is put on hold. us some: minister, give information about ttp and nafta. are these deals going to be unwound? see because donald trump has said in th

the market is thinking a little bit about the conform, but it is provided by the ecb in terms of bundesbankhe political risk increases in italy, the netherlands, france, or possibly the bankany, the more expects ecb to two do some -- to do even more. bad news, the ecb reaching out even further in the armor. how would you say the credit worthiness picture has changed when we look at, especially these peripheral countries of both nationally and out far as those banks are concerned? is it getting any better? filippo: it is slowly getting better. if you look at fault in some term of the liquidity, it has been quite considerable over the last six to seven years. the one thing, the asset quality for italian spanish and portuguese banks, they need to do more. is asking the bank to increase the provision. guy: stay with us. we need to talk about what is ps.pening with the mps -- bn matt will carry on talking about this, to the ecb vice president. upt conversation coming 10:00 a.m. london time. it do not miss it. we'll talk about italian banks in more detail after a very short bank. why would he put

yields have gone up which makes the job of the bullish bank easier because it is more bonds for the bundesbank have a situation where spread between italy and germany particularly is now back to and 2014.as in 2013 we have the referendum for the eu on the fourth. asian investors in particular as in the eurozone projects. what is worrying is french spreads away from the bonds. we have the french election coming through next year. 12 election victory in a sense is basically -- has basically opened up this pandora box in the eurozone. yousef: we have seen is all week that some of the yields are beginning to creep a little bit higher, again it reflecting the anxiety about the upcoming elections in different parts of europe. we have people on this set we said, you are making a big deal out of italy. they are going to go through one way or another. the concern is -- you are saying no. italy is the crux, italy is what we should be paying attention to. david: france, it is not just the fact of the top election victory. election victory. renzi may resign purely to hope to come back at a later stage and

all of this data is volatile and it points back to september and ties into the bundesbank view that themy has experienced a soft patch in the third quarter. some of the data since then says that business confidence is declining. bear in mind how backward looking this is. another day of gloomy news for the german economy. yousef: we have a report from opec. they have raised their forecast for global oil demand in a year and through the end of the decade. they are anticipating that cheaper crude will spur consumption even as economic growth slows. -- in expected to reach 2017 and they are also seeing a $300,000 barrel a day increase from last year's forecast. opec did cut its estimates for crude about $20 a barrel. that is compared to the previous outlook. it is unassuming that crude will average $40 a barrel in 2016. also raising the predicted price to five dollars a barrel. brent had averaged $45 a barrel. the group is in the make your of figuring -- is in the middle of figuring out how to provide production targets. under the relatively new ceo, the company says there for your nonfood