commerzbank is the stock to watch at the open.e will bring you that market open in just four minutes. ♪ we live in a pick and choose world. choose, choose, choose. but at bedtime... ...why settle for this? enter sleep number and the ultimate sleep number event, going on now. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store, right now save 50% on the ultimate limited edition bed, plus 24-month financing. hurry, ends monday. know better sleep with sleep number. jon: good morning and welcome to on the move." guy johnson has your morning brief. guy: the equities were deepened in asia and japanese stocks a suffered their worst week since 2008. the german bank bucks the trend expecting a slight increase in profits this year. we will be speaking to the ceo, martin blessing. , tumbling toase the lowest price in more than two years. jon: jamie mucks up the stock. 20% -- 20 seconds away from

commerzbank and deutsche bank rising. the banks are the strongest sector here in the united states as well but they had been the weakest sector in the weeks leading up to this. we are seeing some strength. not only do you we have what is going on europe, but we have what is going on with jpmorgan when jamie dimon spent essentially a years and counting to buy back bonds. take a look at the bloomberg index. this is the insider buying versus the price of the s&p 500. we have seen the surge thanks in dimon, and we have been hearing from investor saying they think banks could be a good value at these levels. leaving a rebound in the insurance companies. they fell yesterday on disappointing earnings from prudential, but prudential and lincoln national are snapping back today along with aig. announced a dividend increase and a stock buyback authorization of $5.5 billion. what about the breaking of some streaks today? julie: losing and winning streaks. oil had been on a losing streak, so we are seeing a switch. crude oil, this lo

look at commerzbank. up by 14%. it returned to profit in the fourth quarter.ngs at the consumer banking business almost doubled. losses narrowed at the unit from winding down soured loans. it plans to pay a dividend of $.20 a share, its first payout since june 2007. rolls-royce holdings, the jet engine maker, has cut its dividend for the first time in almost 25 years. it said it will need to deepen its cuts amid sluggish sales of marine turbines, slumping demand for older wide-body jets. it did maintain its outlook, which is why shares are up 14%. causeors are relieved the the company issued six profit warnings in the last two years. to its the first cut dividend since 1992. the msci world index slumps into a bear market. quick bit of technical analysis for you. above the averages 50-day moving average. this is when the death cross happened, when the 200-day moved above the 50-day. look at the rsi as well, the relative strength index. we are below 30. that means the market is oversold. we've seen a 20% decline from a last year. the momentum is still on the dow

guy: commerzbank stock is up 17%.furt now and talk with marson blessing -- with martin blessing for the stock is up sharply, but don't heavily so far this year. are you disappointed in the way the financial markets have priced your stock so far since the beginning of the year? martin: thank you for the question. today the stock price is reacting much better than we have seen over the last week, but the markets are what they are. what we are doing is working hard to improve our resolve. i think the numbers we published today are good, over $1 billion profit. the first dividend since 2007. we have a core equity ratio of 12%. i think these are strong numbers. we keep on working to improve them. impact or negative rates having on your company? see negative interest rates already for some time. we are trying to price also deposits of large deposit holders also on the negative side, but you cannot pass on these rates for private consumers, so of course there is a certain margin squeeze on the public side. we are trying hard

finally, we're getting a break out of commerzbank. this comes following the week's heavy lows, but now commerzbank stock res soaring and this comes after announcing its first dividend since 2007. with that income in the time quarter of 2016 surpassed expectations and the core equity tier one ratio rose to 12% up from 9.3% a year earlier. so investors cheering the increase in the capital ratio there. the lender saw a solid drop in loan loss provisions which has been a concern for many analysts. and keeping this in perspective, financial stocks have been bouncing back across europe and this comes after the steep losses we've seen earlier in the week. but the gains in financials today are coming along with strength in basic resources we've seen, as well. all significantly outperforming the other sectors. we've got to take a look back at exactly what banks have done over this torrid week here. credit suisse led pierce to the down side. off almost 14% for the week. but investors punished socgen for its guidance. i was speaking to the ceo o

commerzbank came out today and boosted the entire sector.tsche bank and credit suisse are doing wrong? >> good question. all of these guys have not raised as much capital and they need it. so deutsche bank and credit suisse are going through huge restructuring spread we talked about that a lot. they are doing it with very thin capital cushions. that is really the concern here. that is what the ranking of european banks generally, who has the capital, who doesn't. that means there will be questions about the likes of deutsche bank and credits we going forward for months. i read the release with commerzbank, it was retail banking that was up for that substantially. they managed to get rid of a lot of their shipping loans that were hanging over their heads. >> maybe investment banking is not the place to be, maybe not in europe. we have seen the pullout of the u.s.. about investment in u.s. banks being in good shape, and they are taking a lot of market share in europe. it is good for the u.s. banks. it certainly is. as chris said, deutsche bank

i want to show you deutsche bank, also commerzbank.e getting a little bit of concern out there. we are trying to get to the bottom of it. we seem to have a lot of regulators saying credit demand doesn't compensate for low interest rates. this is interesting to be put into context. let's get to the bloomberg first word news. vonnie: the un security council is promising to retaliate against north korea for launching a long-range rocket. north korea is celebrating. there was a fireworks celebration in pyongyang today. says this is a test of ballistic missile technology. meanwhile, the u.s. and south korea will have talks about deploying a missile defense system. the president of turkey is signaling the country is prepared to join the war in syria if needed. turkeynt erdogan said shouldn't repeat the same mistake it made when it turned down a u.s. request to join the coalition against saddam hussein. finlandnce minister of is urging the european union to keep its borders open while it tries to resolve the crisis. another dispute between in

hans breaking down the commerzbank story.e are journeying to frankfurt, paying the dividend, when you look at the european banks -- what i have here is actually a position that these are the european lenders. my question to you is this. we are more oversold and now, ok, then we are even going back to the height of the financial crisis -- back in 2008. you know, catch a falling knife, i suppose. we could use all of the cliches under the sun. there is no doubt about it. these banks have been righted. how do you look at the industry? colin: i think it will be much tougher to make money with the yield curve so much flatter now, and as you are talking about on the forward expectation in inflation. it is a tough background. the european banks have not quite that the balance sheets in order, in the way that the u.s. has. and i think particularly for that applies to ones were the market is targeting now. so what we seeing now on the share price is a reflection of what is going on underlying the default swap market. and also in some o

caroline: commerzbank saying they are in the waiting room to the e.u. decision. tom: it is a really interesting soup this friday morning. an indeterminant week. we go to chinass right now. caroline: we do. that was a focus when we got into european trading. the central blank increase requirements for reserve some banks but they must must lock away this capital. a record 2.5 trillion won in new oans in january. what thuzz does this mean? they are trying to get a grip on perhaps more risky loans. too much debt being fueled into the equation. s&p already warning about this. >> good morning, caroline. indeed, look at -- an instration of the kind of balancing act that china's central bank is trying to carry out here. we all know their economy is slowing. to juice it up with in loans. the banks are lending. they are getting funding from the local governments. people are being put to work. at the same time china has an verhang of a bad debt problem. they don't want to go down that road again. they don't want to play that play book in totality again. it is kind of a bala

deutsche bank confirming it will $5.4 billion of its owns bonds, commerzbank one of the rare europeanlease earnings that beat analyst estimates. they pulled up european and u.s. banks today. alix: thank you, julie hyman. goldman sachs wants to create a new etf that would be based on a famous research report. could this be a game changer? how would that even work? reporter: right, so goldman sachs filed. it's interesting because it is called the goldman sachs and hedge funds -- goldman sachs vip etf, and that's the same language they used in another fund where they look at the hedge funds, the 50 stocks they are most committed to and you have read those reports. it's not like that is a new concept. there is another etf called guru that does something similar. the interesting thing about this is there really has not been any wall street banks that have gotten into etf's, that had tagged etf's to their own research report. goldman in particular, people read everything that they write. they are playing to their strengths. so, that is why it could be a game changer. this is also a way of m

bank,n point to deutsche commerzbank, all the banks a drag. in the u.s., one of the worst losers is boeing. probe, notg an sec helping stocks. joe: a very interesting day in the sovereign bond market. in europe, bond yields starting to surge. here is a chart of the price of the portuguese bond. to 89 as the yield surges. people are concerned that the socialist government is going to backtrack on some spending cut plans and that there could be downgrades, so once again in the eurozone we have all these issues of concern about government debt. meanwhile, the yields in the u.s. keep declining. an extraordinary morning, but more downward pressure. alix: were talking about the flattening yield curve. deutsche bank pointed out that if you have two-year yields below 1% -- saying the yield curve is distorted and we are at recession signals. scarlet: in terms of risk aversion, the yen strengthening. it gains in value versus the dollar, versus the euro, every major currency. was talk that the bank of japan might have to intervene. the commodity world ha

. >> lauren: peter dixon thank you so much at commerzbank. on in asia, hang seng down 3.8%. kospi down and china and japan closed in europe worries about the bank. look at this. ftse down 2%. cac quarante down 3% and dax 2% as sweden cut rates further into negative territory. 264 for the dow, off the earlier lows, still significant selloff and we are seeing the s&p down 32. checking out commodities, we have seen oil down five days in a row and for the sixth day with dawn arrows below $27 a barrel. gold up 30 bucks. here is a look at how the dollar is fairing. and for our ten-year treasury bond yield, flight to safety 1.62% in the uk. lowest ever that existed. now we take you through the next several hours and maria bartiromo, mornings with maria begin right now. good morning, maria. >> maria: good morning, nicole. i'm maria bartiromo, we are looking at a global market selloff developing right now. it is thursday february 11th and we have breaking news, with me this dagen mcdowell, kevin kelly and dominic tavela and ceo martin is with us as we

the ceo of commerzbank says that they have enough money and the market is sending a much more disastrousased on that, what do you think? raoul: i don't want to comment on that bank specifically, but i think there are plenty of concerns. very specifically, if you look at the banks -- the broader structure of the sector. we do not see much consolidation, efficiency improvements. we didn't see a closure of branches even in france. really, as you mentioned at the start of the show, the lack of decrease in leverage of these banks and a lack of structural overhaul with their balance sheets and operating systems has set into this long-term malaise. i will side with the markets on this one. scarlet: what strikes me is the commentary around deutsche bank because it is so symbolic. germany's biggest bank, europe's biggest lender really. it is a sense of too big to fail bank of the region. there is no way the government will let anything happen to it should get into some hot water. the bonds we are talking about a very specific. they are not necessarily held by everyone. i actually want to bring in

financials are leading the gains, following on the heels of commerzbank in europe coming out with earnings that beast estimate. financials here are bouncing back. most of these groups are rallying. health care would be the exception, sing a little decline. on the bank front, not just financials, but banks specifically, the worst-performing group in the s&p, when you look at the 24 seven industry groups as opposed to the 10 broad ones. you can see a decline of 21% for the year. one other thing i want to mention, oil prices. in addition to financials helping buoy stocks, we're single oil prices hold up well, rising for the first session and seven, up 5%. because we have seen as correlation between oil and stocks, this is helpful. betty: it is. we are still seeing that risk ff trade, right? julie: to some degree. gold prices rising to the highest in about a year. now we're seeing a little decline in that today in the gold trade today. also, watching the 10 year yield and it is still at its lowest in about a year, even if it is of taking a little bit today to 1.68%, which is still a very low l

commerzbank is talking about how many banks have been trying to get around the crackdowns, funnelingnto other ways to avoid that and not really provisioning. this could lead to a debt bond further down. senseeeds into the that the government is trying to rein in this lending. there are many creative ways we have seen worldwide to get around government restrictions. guy: richard frost joining us out of hong kong with that stor y. let's talk a little bit more about this with yogi you are concerned about china, but we have a story. that levels are getting back -- debt levels are getting back up to those ratios and that should be a warning signal. yogi: the quality of the lending is very important, but bank lending is crucial to gdp growth. lending is not a freebie. it has to be financed. this is a way to stimulate growth over the long-term. and of course, thanks will make good loans -- banks will make good loans and they will make loans that are not so good. businesses will fail, but that is part of the cycle of growth in an economy. thenot so concerned about numbers. they are increasin

commerzbank may be a little bit a lot of thed and local savings banks may be more associated with theman mitchell sent then deutsche bank. nichols, thank you so much for your perspective from berlin. gilbertext hour, martin -- look for that on bloomberg at 7:00. we are francine mccall and tom keene. the futures were worse earlier. we have a little curve flattening earlier in the united states but some stability all in all within the markets after again -- after the yen with a 1.14 handle yesterday evening. stay with us on "bloomberg surveillance." ♪ tom: "bloomberg surveillance." markets are stable. that is the message right now. night, the initial print was a solid 1.1 -- solid 114. a little bit of curve steepening in the last 20 minutes and that is good for the markets. it is also good to have the first word news from london. caroline: voters in new hampshire have already started casting ballots in the first presidential primary. night, votersst participated in a tradition that goes back half a century. john kasich got three republican votes and donald trump got to. polls indic

showing more strength, but also commerzbank.estors know and they're taking into consideration the low growth and zero rate environment this will be difficult to maintain and many bank also have to revise targets. there's a lot of pressure. in addition, there's new regulatory framework that started on january 1st which are the rules that will ask private investors to phase four banking crisis. this creates pricing on bond -- on banking bonds. so the market in a certain situation, they sell everything from shares of banks to bonds of banks. we will look for what mario draghi can do on march 10th. he will not have many arms to play. at the same time it will be the politics that will have to play the game now giving more reforms and more strength to the idea of the european union which is one of the main sides of this crisis. europe is divided, fragmented in terms of the new challenges like immigration, they have difficulties in finding you are neek response. this is what the market is questioning. if this will be another big crisis