will continue to be commerzbank headquarters?excellent question and one we will continue to talk about. matt miller, always great to see you. here is what's coming up now in the next hour, watching that g7 meeting in quebec where rolled leaders will be arriving shortly. we will bring it to you as it happens. then, the state of doing business in russia. we will hear with all of your fuse on how vladimir putin is moving to the banking industry. and a quick look at markets here. the s&p 500 muddling along here. technology selling off again, evidenced by apple down 1.7%. we will dig into that stock further. the 10 year yield not much moved today at 2.93%. oil rising for the second day in a row. we are going to speak with a manager who owns energy companies next. this is bloomberg. ♪ caroline: with from london, i'm caroline hyde. julie: in new york, i'm julie hyman. this is "bloomberg markets." the vision in -- division and opec. cartel members split on increasing production as saudi arabia wants and the u.s. has requested or hold fir

they have talking to shareholders about a merger with commerzbank.mal talks on the .ay the two lenders discussed at the deal two years ago but nothing came of it. german banks reporter joins us from frank first. what is the likelihood that something comes from these informal talks. if you compare to what happened two years ago. clear nothing is imminent. these are informal talks. people talking about the idea that at a trial balloon to see how much resistance and how much support is there. is pretty clear that some large shareholders don't want this to happen at this point because it would be quite -- and deutsche bank, the price to book value is really low. below .4. it is not going to happen anytime soon people have been talking about it. maybe it is picking up. we won't see anything happening very soon. anna: the concept of germany being overbank is something we have been talking about. what are the pros of this kind of merger? i think the fact that germany is overbank is one of the things that speaks for the merger. the two banks combined what ha

i just watched the ceo of commerzbank walk over from covers bank right behind -- commerzbank right behindt is why i got a little excited for a second. to get back to the ecb and i think it is an interesting point that you make. they want -- don't want to be seen as helping out italy. politically it could be problematic, although you could argue that central banks should try to ignore to some extent their political appearances. i don't understand why all of a sudden this is being talked about a hawkish move, that they are discussing the end of qe. it would be the most dovish move in the world if they didn't. they were supposed to end in september -- they are supposed to end in september. it is not likely are going to wait to talk about until august 31. isn't it a little late for them to start getting ready to end it? peter: yes, you have to start now. it is just that the markets interpretation of talking about it is very much that the ecb is talking about ending it, and ending it could be actually final at this point. i guess at the market hawks who have been so wrong for the last two year

is said bank's chairman to resurrect the idea of merging with commerzbank.al snap the lender out of its self-professed vicious circle. former fed chair ben bernanke says the u.s. economy could face a slow down in 2020 as trumps stimulus fades. this is "bloomberg surveillance." we have to talk about the g7. much worse than expected economic data out of germany. and the wily e coyote moment. it was a cartoon where you see a cartoon a -- a coyote running after a road runner and he falls on his back. tom: we will see which warner bros. character comes to the rescue. this g7 meeting is front and center. it is extraordinary what has gone on in the last 24 hours. i have no idea what we will see this morning -- saturday morning if the president stays around into saturday evening. francine: i think he is leaving early to attend the summit with korea. to be the is said most acrimonious world summit in years. face off trump will against six other leaders when the group of seven meets in kobach. european -- meets in the back -- meets in quebec. presidentt -- predicts ne

why do we think commerzbank would want to do this again?th banks know they need scale in the notoriously over-bank to german market. a merger would benefit both. toy are looking for a way cut costs, so synergies would be a good way. both banksclear that think they are not ready for any such merger just yet. they are both in turnaround plans. they will have to go through that before it becomes an option. people's mindsn and that people like to talk about, so the thought is there. ♪ erik: welcome back to "bloomberg best." i am erik schatzker. the head of switzerland's largest bank says, hang in there. he told manus cranny that investors should stay in the market despite the volatility. he sat down with the next was of interview in zÜrich, switzerland. bonds, but ifn you go back into the levels of in general, fx movements, yes, some movement, but not a lot of volatility compared to the standards. i would say overall investors are very cautious. they are out there observing the situation. they are not panicking. they are starting to get concern

germany has a 15% stake in commerzbank. they could possibly trigger such a tieup. >> thank you so much for that. >>> first property has reported better full-year profit before tax citing a stronger euro ben habib joins us this morning. thank you so much for being here how much have you benefitted from the euro's strength >> we made 400,000 pounds net profit it wasn't as marked a movement as it was in the previous year when we had the referendum for brexit and then we saw the collapse in japan. >> i have to ask back in march, you said brexit should be a spur we're a couple of weeks away from the next eu leaders' summit the plan has been to resolve outstanding issues by then to make sure things are wrapped in a nice bow by october how confident are you? >> i'm not confident think the government has handled our brexit negotiations really badly. one thing strikingly absent from the rhetoric from the government is what our domestic policy is going to be post brexit. what kind of country is the united kingdom going to be a low-ta

why do we think commerzbank would want to do this again?> well, i think both banks know they need scale in the notoriously over-banked german market. a merger would benefit both. they are looking for a way to cut costs, so synergies would be a good way. it is also clear that both banks think they are not ready for any such merger just yet. they are both in turnaround plans. they will have to go through most of those before it becomes an option. this shows it is an idea on people's minds and that people like to talk about, so the thought is there. ♪ erik: welcome back to "bloomberg best." i am erik schatzker. the head of switzerland's largest bank says, hang in there. the ubs ceo told manus cranny that investors should stay in the market despite the volatility. he sat down with an exclusive interview in zurich, switzerland. >> volatility has spiked on bonds, but if you go back into the levels of the vix in general, fx movements, yes, some movement, but not a lot of volatility compared to the standards we are used. i would say overall investo

program will be ending by the end of 2018 with that, i think we reestablished contact with our commerzbank guest. thank you for coming back. i was just saying that it's interesting that despite all of the change, is that we've seen, and also the developments in italian bond yields, that the ecb are still so intense on making this a live meeting perhaps they're better off biding more time and waiting one more month and coming out with a big decision in july as soon as september so they can see how the data evolves before coming out with a large statement that could scare the markets. >> no. i think the ecb has made the deliberate decision already last year to end qe at the end of this year. now expectations in the market are focused on this end date already. i think the ecb would be well advised to execute this decision and i think quite likely they could do this already today with the statement at 1:45 frankfurt time >> another big topic of debate is that of forward guidance. assuming they do end up unwinding or announcing the beginning steps to unwind the asset purchase program, the next

commerzbank sees germany winning. s es germany winning as well.stro that is barn'm taking you inse secret, says germany will when the final and england will suffer misery once again in the hands of the germans. world cup . i love that you think england is going to get out of its group. s spendour crewmember that whole time shaking his head. he thinks spain. definitely going to dominate the conversation over the next few weeks. germany,ay be. who knows? we will see. no foodat fanfare and vuvuzelas, i declare you battle of the charts -- the winner of the battle of the charts. ♪ mark: getting some breaking news on vw. the german automaker has excepted a one billion euro fine from german prosecutors in the diesel case. it has admitted responsibility after the market close. vw accepting this one billion euro fine from german prosecutors in the diesel case. we will bring you further details on that when we get them. vonnie: house speaker paul ry has brokered a deal on the -- some protection for immigrants brought to the u.s. as children. we are join

i think that one factor that is out there, the german government has a larger stake in commerzbank at a much higher level. bank pay for it is probably better than taking from another country. you pointed out, deutsche bank is trading at a discount, as is europe in general. bk s and cat the s&p, the european index. but it is cheap for a reason? where else are you seeing things that are cheap, but some of the attractiveness is being overlooked? in they has been forefront, obviously. we have positions in italy. i think it is volatile. i think you have to be patient with your entry points. uncertainty in italy is nothing new. they've had at least 66 governments in the past 72.5 years. turning over to this government, while there is a tremendous amount of uncertainty, and while i think the market will test the result of the ecb. when i see people try to compare this to greece, most of the greek debt was held outside the country by other banks or institutions. 65% of debt is owned by italians. you can'treads wide, say of some of the larger institutions, this will be your actual saver and it

max kettner of commerzbank is with us.s that phrase migration, maybe they say immigrants, one says immigration and there are the different keys. in thehe same as germany united states as this debate? >> good morning, tom. the dynamics are different. the political contours are similar but in the united states , what is happening, donald trump has broken a lot of china -- shattered norms. where he is going and what has a lot of people -- not i large people -- non-ideological people, first ladies, you look at the words of the statue of liberty, huddled masses yearning to be free, he is messing with that. that gets under people's skin in fundamental ways. across party lines. remains more of a partisan battle. tom: in germany, there seems to be a timeline, where are we through this week with angela merkel and the national debate? essentially, they agree to disagree and to stop the dispute for a couple of weeks until the eu summit at the end of next week. trying to get some sort of i lateral deal with the eu countries -- bilater

is our guest, fx strategist at commerzbank. is the run done? good morning. >> good morning.move was quite significant. indication that it is driven by a chinese authority. the dollar move makes a lot of mentality, we have seen a stronger dollar on a broad base. it is not only the renminbi losing against the dollar, it is other currencies. we are seeing weakness against the dollar because of the fact that the outlook for the chinese economy has deteriorated. it is because of the trade disputes between the u.s. and china that has escalated. nervous andestors they pull a lot of chinese markets. this is causing you want chinese, but not the enforcement trying to weaken the yuan. anna: what is the next stage of this story? parts of asia, their currencies, the countries that rely on china for demand. do we see that contagion of the week yuan spreading? -- weak yuan spreading? on how the dispute between the u.s. and china evolves. whether this will scale down or escalate further. there is a good chance that they will implement further import i think this will strengthen the dollar

and with germany now out of the world cup, it's been revealed that ubs & commerzbank had predicted germanyld win the tournament. so, have you placed a flutter and lost out? and what is the use of sports predictions? just let us know. use the hashtag bbcbizlive. hello and welcome to business live. we start in the us where president trump has said he supports tougher restrictions on foreign investment amid growing concerns that china is buying up sensitive us technology. markets have been rattled this week by fears that trade tensions could escalate from tariffs on goods to curbs on international investment. so have they? mr trump wants to combat what he calls the "predatory investment practices" that threaten america's leadership in technology, national security and future prosperity. so, there will be more power and scope for the committee on foreign investment in the us to block transactions. but for now no specific rules limiting investment by china. that's being seen as a victory for treasury secretary steve mnuchin. the us is not alone. the european union has been looking into curbing

a chairman says they should --ge with commerce see bank commerzbank. in iphone component orders.o philanthropy. we hear from the ceo with his way of giving back. joining us now is jason kelly. michael.o his first wall street beat. this will be crazy. [laughter] jason: it will be crazy. thisis amazing to watch saga play out. almost every day there is some deutsche bank think that we are talking about in this segment. and what is interesting about thisew speculation is that started a number of months ago -- bought substantial stakes in both. that kicked off speculation initially. by most accounts, it just probably makes sense. at least to some people. we will see. both of these things are clearly in some level of trouble. they are very important and you probably have insight to the german economy. michael: deutsche bank has been . german champion is it raising value for shareholders or the german economy? jason: that is the key point. theeels like a case where government will have a lot to say. and will have a role in this. michael: if there is a merger, the final product will be c

doubled its overall market capitalization on the first day of trading, making it more valuable than commerzbank. that has countless suppliers and companies it works for, uber, spotify, netflix. currently down by 6%. this seems to be competition. this is another startup based in the u.k.. it looks like it could be getting in on the action. reports they could be offering their own drivers to more restaurants. this is a concern. it was one of the worst-performing stocks in europe. i leave you with another asset class entirely, the italian 10 year yield. we are currently trading that lower. -- theson it was trading reason yields are coming down a a successful bond auction. after all the turbulence politically speaking, we are seeing a successful three-year and 30 year bond auction. that is what is helping the yields come down. vonnie: the fed announcing its rate decision at 2:00 eastern. bruno, a fixed income strategist. where do the ceos go late in the session and tomorrow? you expect a hike but we do not expect 2018 to reflect one more hike beyond tee we are guided to. beyond what is priced in, d

you had germany talking about deutsche bank and commerzbank.stion is how many times is the circle going to happen. even if we do not see unicredit, it does seem like there is much more consolidation talk the mitts the european banks as they are faced with lower profits and interest rates. the moral the story from rbs selling at 7.7% or a government selling at 7.7%? ruth: remember 2007. rbs tried to do this, it could not, the government bailed it out in 2008 and now it seems like we have come full circle. the government is trying to sell its stake in look for new ceos. the question is what is next and who is bold enough to take on this with the memories of the crisis so close behind us. mark: and who would want to be cfo or ceo? you are a shareholder in your sitting at losses on 7%, at air france you are sitting on gains of 7%. the point everybody is making in terms of an idea of them combining -- air france is looking at some of its low cost or even high end options and combining them with fidelity. why do they need to take a stake in this comp

through exclusive reporting that the chairman of deutsche bank has floated the idea of a merger with commerzbank are now hearing that the deutsche bank chair is set to talk to holders on the deal. we know the two german firms have discussed merger two years ago. ♪ ♪ erik: welcome back to "bloomberg best." i am erik schatzker. the head of switzerland's largest bank says, hang in there. the ubs ceo told manus cranny that investors should stay in the market despite the volatility. he sat down with an exclusive interview in zurich, switzerland. >> volatility has spiked on bonds, but if you go back into the levels of the vix in general, fx movements, yes, some movement, but not a lot of volatility compared to the standas we are used. i would say overall investors are very cautious. they are out there observing the situation. they are not panicking. they are starting to get concerned. manus: was there any reduction of risk? did you take any risk off the table? >> i think we have been focused on managing our risk for a while. this is clearly not an environment in which you put on more risk. manus: what

are fintech companies, and we hear so much talk, deutsche bank, although they are short on funds, commerzbankt to partner up with these guys and get them to work for them. do you hear plays like this on hopes for a big payout someday? that must beink part of that 75% pop this morning. becausewas pulled square paid more than the ipo evaluation -- valuation and took it private. whether this is a collaboration between networks and payment providers, i don't know. there could be either one winner that marches through, or it will be acquisitions and conglomerations. lenty more to come from the cio of latitude investment management. up next, brexit. i am scratching my head to understand what happened yesterday. a lot of people are. we will talk about that. bloomberg will be live at the ecb forum. all of that is going to be moderated by bloomberg's editor of economics. you can watch it live here and find it on your bloomberg at live go. this is bloomberg. ♪ welcome back to "bloomberg markets." this is the european open. 23 minutes into the close of session. markets are trading mixed. you can see we

blocked commerzbank for five to 10 years from doing business.ee in the background on a european scale, joint ventures and activities, you know, the biggest problem is there is no single major european bank that is as strong as your banks in the usa and some banks in asia. we need european players, not ritish, spanish, b players. credit suisse or something like that can that would make sense. -- like that, that would make sense. francine: thank you very much. joining us for more on deutsche bank is marcus ashworth, a bloomberg opinion columnist. we talk to you about the periphery concerns. do you understand what deutsche bank wants to the? -- be? >> i don't think it knows itself. its business plan is to not make money at the moment. disappointment all around because savings himself said he is sick and tired of hearing bad news. as an employee, all you have heard is bad news. be interesting point your previous guesstimate is it is just that this bank does not make enough money. it is cutting costs. it is trying to get out of all. that theith him c

fx strategist at commerzbank. there is just over an hour until the start of the trading day.ings we're going to billy wash and what he has to say on oils and hedging. anna: he was talking about iag having a rough section yesterday. we get the sales and revenue numbers from that business shortly. we'll bring you that next. this is bloomberg. ♪ manus: good morning from dubai. live from bloomberg's european headquarters in the city of london. these are today's top stories. manus: stocks are mixed. renewed attention to trade as china offers to buy an additional $25 billion worth of u.s. goods. the mexican peso getting crushed on a delayed nafta deal. could we see more volatility in the euro? the ecb's june meeting could reveal when they intend to end bond buying. more exclusive sound from my interview with a close confidant of saudi prince and why he nts to see more womenn tharena. ♪ manus: warm welcome to the show. paying to be much more attention to the fact that china is setting down a moniker and saying, we are prepared to buy another 20 $5 billion worth of goods from the uni

. -- commerzbank here in germany.at is more likely than takeover by another company but as a regulator, you really want to make sure that before anything like that happens, that the company is on a sounder footing. alix: nick comfort, thank you for joining us. new governments. how the political developments in spain and italy are impacting the markets or not. this is bloomberg. ♪ what's a gig of data? well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. alix: this is bloomberg daybreak. number,from the jobs the market is feeling pretty good. are now triplees digits and spanish equities are up over 2% even with their new socialist government. -- investorsnot be do not appear to be panicking. the dollar is pretty flat.

is set totsche bank have spoken to shareholders about a merger with commerzbank.leading investors and key government officials, although no formal talks are underway and the tie up is not imminent. the two leaders had discussions two years ago, but nothing came of it. has to: airbnb compensate travelers at the height of the tourist season. it wouldd warned delist those who fail to comply. the date was suddenly move forward at the beginning of the month. up, the deutsche bank joins us to talk about the china trade numbers sometime over the next hour, expecting that easing back after a torrid set of growth numbers from april. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmane

what is the commerzbank theory or theme, strategy with the u.s. dollar?spective, we are not as consuctive on the dollar as other market participants reflecting the fact that more of the fed rate hiking cycle is priced in. you see headlines cpi in the states relatively elevated. the core cpi measure is just given the fact we will get a twin deficit scenario in the states over the energy or two, i think we will see the dollar continued to depreciate over the coming months and years. tom: what euro level does europe nt? europeecb and broader are not concerned about the euro. once wrote an inflation does with the ecb thinks it will do. if we see inflation coming toward trend, 1.5%, if we see core cpi in the eurozone grind higher to 1.2%, 1.2% and gdp growth around 2%, the ecb will not be concerned. only if we see inflation decrease in the eurozone as a result of the higher euro. if inflation and growth does what the ecb thinks, they will not be bothered by the euro. francine: talking about italy and spapolitical turmoil and betray concerns. how much of an imp