banking news out of europe, journey -- germany is said to favor a deutsche bank merger with commerzbankapple's latest iphone in stores around the world with hundreds of consumers lining up, undeterred by higher prices. guy: -- vonnie: we want to get to los angeles and mark who is breaking exclusive on apple products. i am coming to you because tim cook is at least run university avenue in palo alto and i am curious as to what he might be buying. >> what might he be buying? i do not think he will buy anything, probably been using the new phone for months if not a year but there to check out the scene and see how many people are buying the phones. they do their own channel checks. to make tim cook seem like one of the customers. steve jobs would go to apple stores. this is par for the course. vonnie: he is doing the job of an apple greeter. what are the products apple will be hoping to sell the most up-to-date? what are the hopes we have -- do we have estimates? >> the hopes are that the opening weekend sales for the x aree x and xs and xs ma stronger than opening week of the iphone x fro

guy, let's get back to the deutsche bank-commerzbank story. we have been following it a little bit that there were rumors that this might come into question a little bit more, but it only looks like it might he a solution for germany. these are two vulnerable banks. commerzbank was kicked out of the dax after 30 years. it might be a solution. guy: it might be, but it might not be. that banksg two together -- some would argue that they are not bad banks -- but banks that are struggling -- disease two just do these tw -- merit being banks put together? it is moving the market right now. governmentcompany -- is looking on this favorably right now. there would be big job cuts. that would be difficult. let's bring things back to london. breaking the brexit impasse. -day summit ino salzburg, it ended without progress. leaders piling more pressure on theresa may. a special november summit. ahead if thego u.k. makes more concessions. the prime minister responded today. prime minister may: no one wants a good deal more than me, but the eu should be cle

no comment yet from either deutsche bank were commerzbank.id: the german government saying it would be ok, but what does commerzbank under -- deutsche bank want to do? commerzbank has said we think we are just find the way we are. >> both of them have had struggles, a chart which shows how they have been performing year to date, both doing pretty badly. both have been questioning the viability of their long-term strategies. this focus is on deutsche bank, it is lagging the american peers. the white lineis versus jpmorgan is the blue line and city which is the green line. -- citi, which is the green line. it needs to catch up with its american peers. a merger between them what create some synergy and may help strategically. there are those that say another european bank might be the best. david: a fascinating development. if you take two companies and make one, typically you do not get a healthy company. , whatvoter participation can be done about it, we speak to a man who has written a book on the subject. that is next and this is bloomberg.

peter dixon, global equities economist, commerzbank stays with us.aking news out of italy, demaio cutting short his visit. there could be a delayed cabinet meeting on the budget, and basically we heard the decision of newsudget, a lot flow to digest, and the impact on the market. the two-year yield has been jumping significantly. some pressure on the euro. .p next, our interview this is bloomberg. ♪ nejra: economics, finance, and politics. this is "bloomberg surveillance. " i am nejra cehic in for francine lacqua. ceo spoke exclusively to bloomberg. for december,e and three more for 2019. i think the fed is executing their plans, and the economy is sustaining this policy. i think we will continued to see this in the future. manus: what do you make of trump's comments having a punch at jay powell? >> historically speaking, any intervention to implement central bankers is counterproductive. i think in any case, it is in fedt, under pressure, the and any central bank feels the pressure. policy sense, monetary should be a matter of the central bank. said

. >> that would be an interesting idea quebec commerzbank is on idea.- interesting commerzbank is on son thunder is in a better position. santander is in a better position. that would be good for commerzbank. standalone investment banks in europe and the u.s., we don't evenhave them anymore, goldman became a commercial bank by charter. the standalone investment bank is dead. that model is that after the crisis. it would be good for them to do the synergies. it would be a big step for santander. guy: thank you very much. andreaprise news that orcel will be leaving ubs and joining santander. this is bloomberg. ♪ president trump talked about kavanaugh. he said the new accuser was "totally need created." -- "totally inebriated." we will bring you the full comments. he talks about other issues as well. guy: let's talk about what is happening in europe. eu. frictions with china and hurting car stocks. airline stocks have also been smashed, lower today. let's talk about what is happening here. let's start off with bmw and talk about that. in august and made comments about how it is being af

commerzbank will be removed from the dax on september 24.replaced by a payment provider. commerzbank was a founding member of the dax since the inception in 1988. that is your bloomberg business flash. >> thank you. lawmakers in the united states senate have raised the prospect of regulator social media platforms. the bosses of facebook and twitter testified russia use their networks to interfere in elections. >> russia use social media as part of a, i quote, comprehensive and multifaceted campaign to sow discord, undermine democratic institutions, and interfere in u.s. elections and those of our allies. we were too slow to spot this and too slow to act. >> we believe many people use twitter as a digital public square. they gather from all around the world to see what is happening and have a conversation about what the have seen. twitter cannot rightly serve as a public square it is constructed around the personal opinions of its makers. of alieve a key driver thriving public square is the fundamental human right of freedom of opinion and ex

yvonne: and, we speak to commerzbank's hao zhou about volatility. rishaad: can you can join our chat by sending us messages during our program. tv is the destination. this is bloomberg. ♪ tensionsounting trade in india are keeping investors on edge, especially when it comes to emerging markets. they are coming closing to breaking above their 50 day moving average. the last time the index crossed that level was back in november, which heralded a four-month rally. goldman sachs' chief strategist says markets should not be phased by this trade war. take a listen. >> i think the markets already feel the risks of escalation even from these levels in the tariffs. faroverall macro effects so , i think it is relatively modest. so there's a multiplied effect. at this stage i don't think it will be very significant. withad: let's discuss this emerging-market economist hao zhou. thanks for joining us. what do you make of those comments, and should people be fairly unsettled by then? clearhink it was very that everyone is concerned about the trade tensions

stephen.to thatthis make it possible we could see a tie up with commerzbank or another entity now thats out of the way? >> i do not know if there is a direct answer, hna does not have much of an opinion to the merger. but iot see an obstacle do not see a potential merge accelerating as a result. it depends on who will take the shares that become available. if it is someone betting on an eventual merger between the two .anks, it could accelerate romaine: how important was hna'a investment in deutsche bank to begin with? developedeloped -- it i would say, very important at the beginning and it came at a point when deutsche bank was in andetty deep crisis in 2016 they needed a new investor to stabilize the share price and there was doubt. has notce then, hna turned out to be the white night deutsche bank would night -- would like to see and very controversial shareholder, criticized for a lack of transparency. has beenholding criticizing and the financial regulators have taken issue with the holding. instead of bringing confidence to the bank, it is contributing to negative headlines surr

there's a report that the german government is open to the idea between a merger of deutsche bank and commerzbanknance minister left schulz -- olaf schulz could envision it. the world's largest supplier of semiconductors used in cars is looking beyond the automotive sector. the california company will help -- the price represents a 16% premium to idt's close yesterday. fashion label badgley mischka marks its 30th anniversary on saturday during new york fashion week. to label has plenty celebrate. it's enjoying its best sales ever this year. mark badgley and james mischka are the cofounders and they join us in studio. congratulations gentlemen. 30 years. how have you managed to do it? fashion is notoriously difficult to last in. >> 30 years is a lifetime in this industry. the most it's one of difficult businesses. it's truly gratifying. it moves at such lightning speed today. voices, so many choices, so much competition. you never have a chance to get bored. vonnie: this year was through the looking glass, alice in wonderland. what was the inspiration and why is that something for 2018? badgleyre

government apparently is going behind the idea that we could push deutsche bank into a merger with commerzbankthis from a national economic view -- german companies need a strong domestic banking market. that is what they would like to see. they were looking at the european level and they say the european merger is still probably a long way off. it makes sense if we have a banking and fiscal capital market union and so they would ask them, they are favoring at deutsche bank merger. ♪ it has been a dizzying ride for investors in a marijuana company. to stock nearly doubled only see all the games go up in smoke less than an hour later. even though it was a volatile day, they managed to gain. >> yes. they managed to gain 40%. almost 94% was the high, hitting exactly $300. it then 45 minutes later lost all of that and went negative. then within the last 45 minutes of the u.s. market session it rose again 40% to close $217 75. the mp is jumping into hong kong, raising $4.2 billion usd. the chinese food and delivery service giant went public to fund its increasingly costly battle for customers in ch

does this make it possible or less possible that we could see a tie up with commerzbank or some otherntity now that hna is out of the way -- hna is out of the way? >> i don't have a direct answer to that. to my knowledge, hna doesn't have much of an opinion on the merger. i don't see any obstacle arising out of this, but i don't see a ,otential merge accelerating either. it depends on who takes the shares that become available. betting on anne eventual merger between the two banks, it could accelerate, any proceedings in that way. shares, falling by as much as 10% today after two senior executives announced their departure. it follows an interview with elon musk. this one saw him sipping on whiskey. sipping whiskey, smoking pot, they lose their chief accounting officer. less than a month with the company. there is even greater call for a co-ceo or coo to be under elon musk and help him run this company. ♪ julie: you are watching "bloomberg best." i am julie hyman. tom mackenzie sat down with alibaba group founder and chairman jack ma. they didn't talk about e-commerce or double trade.

it replaced commerzbank in the main european gauge.o and look at some of the other moves across assets today. looking at currencies today. the e-krona dropping as the central bank in sweden said it is not going to raise rates yet. we see it in the green here in the euro versus the e-krona. this is the swiss gaining. the swiss franc as a safe haven bid comes in thanks to create concerns and a new round of tariffs. finally, the pound versus the dollar strengthening today. some optimism in the market it will be able to reach a deal with the eu pre-brexit. of course, a weakening dollar helping out this picture. that is a look at european markets. vonnie: we have the vix higher by a price margin today at a dollar index a little weaker. this because we are getting a little bit of a respite when it comes to emerging-market currencies. canadian dollar and mexico peso bush leaguer given that we have gridlock still on the canada portion of the trade talks. 38 for the mexican peso. 67.de oil now trading at 68.8 -- 67.68. let's move to global macr

one thing i want to highlight, commerzbank losing its place on the dax.s talk about european banks as a sector. they have been pretty significantly undervalued so far this year. do you think that will change and why? >> yes banks have been one of the worst performing sectors in europe this year. technology on the other side of that has seen that reflected in index changes. banks are interesting. european banks are trading on multi-year and decades high return on assets asset ratios are also at decade highs. capital is being built slowly and progressively and significantly over the last ten years post financial crisis. fundamentally the bank sector appears to be in a much stronger position but that's not been reflected in prices and in valuations so when you look at two simple numbers, it makes this point clearly. the sectors are trading at relative highs over the last ten years. but price to book relative lows. so there's a big gap between r.o.e. and price to book the bank sector is effectively pricing in a significant down draft in the sig cal or a signi

government apparently is going behind the idea that we could push deutsche bank into a merger with commerzbankthe government take this from a national economic view and they say german , companies need a strong domestic banking market. what they want, strong banks, and that is what they would like to see, and then, they are looking at the european level, and they say the european merger is probably still a long way off, and it only makes sense if we have a banking and fiscal capital so, therefore,nd if you would ask them, at the moment, they would say they are favoring at deutsche bank merger. >> it has been a dizzying ride for investors in u.s.-listed canadian marijuana company -- the stock nearly doubled only to see all the games go up in smoke less than an hour later. even though it was a volatile day, they managed to gain. at the end of the day. >> yes. they managed to gain 40%. you talked about them almost doubling. 94% was the high, hitting exactly $300. and then 45 minutes later it lost all of that and went negative. and then, look at that, just within the last 45 minutes of the u.s. ma

banking sector, but the head of germany's banking union would not be drawn on between a tie up of commerzbankutsche bank. i sat down with the ceo at the european banking summit in brussels and asked for his take on consolidation in the sector >> i think what's needed in order to enable cross-border mergers is for policy mmakers t take initiatives and integrate european banking markets the way the regulatory environment is set up, the fragmentation we have, i find the economic rational for large-scale cross banking mergers is limited we all need to work in order to create an environment, regulatory environment that allows banks to benefit being market leader and of being operational in more than a couple of eu countries we are not there yet >> what about domestically do you see room for consolidation in germany >> i find there is a lot of consolidation going on in germany. the consolidation i would focus on is not talking about the large banks, there are still a couple thousand small institutions there's a lot of consolidation going on between small and medium-sized banks that's good. this con

you guys again replace commerzbank and the get -- and the dax. tell me what does that mean to you.e a german company but you have customers all over the world and now you're on the dax. >> it doesn't change our strategy. we had a very strong strategy. we have to make policy for tech stocks. it's our ambition. we very much welcome this. in terms of doesn't change our strategy. what are you looking at now to drive growth? company toro 150 rate 180 company on the dax. what does it take to get the next step? see an acceleration of growth. the nextom online stage would be all channels. a technology or cash company. we have 90% cash. we can charge growth by convergence of point-of-sale. and nontraditional channels. we think we have a tremendous curve before us. we have a growth opportunity. when hundred 80%. outperform what we achieved last year. when i think about point-of-sale, how much of done -- of that is done with cash? of the world, people use cash anymore. what are looking at globally? i would say cash still accounts for 80 to 85% of transactions. point-of-sale still over 90%. di

as commerzbank looks to get kicked out of the dax index, will it ever recover from the financial crisisning and welcome to bloomberg markets. "the european open." i'm alongside guy johnson. guy: 30 minutes into the trading day. down .4%. it follows the losses from asia. real stock story movement to the upside this morning. company. diagnostics in vitro diagnostics for the pharmaceutical sector. there are zero cells on the bloomberg -- zero buys on the bloomberg as far as i can tell. the stock has come up quite sharply but it looks like the analyst community has said this is as good as it's going to get. but the numbers don't speak to that. the company flying. caux trading up as well. it's trading up this morning. wildcard up 1.84%. bottom into the market, ambu, this is a company that does search-and-rescue equipment. i don't think it's the best-performing stock this year to date. but this is one of the best-performing stocks in europe so far this year. yearup 100% or so far this . the reason why it's trading a little bit low this morning is actually, i'm going to have some of that, cash

we know deutsche bank, the running,ion sewing is is considering a tie up with commerzbank.n berlin considering that possibility. let's get the thoughts of peter chatwell, head of rate strategy at mizuho. it's interesting in the abstract to talk about banking union, but i can't imagine the european union actually achieving this, because it involves shared responsibility, shared financial responsibility, which states like germany are not likely to take for states like italy. peter: it is a massive stretch. the banking system in europe is still extremely fragmented. you can see that, how the banks lend to each other, there's very little cross border activity within the euro area. the reason why the ecb and others really want banking union is because it would make the financial system that much more effective at passing on their monetary policy, but i think it is a hope. probably catalyst, another crisis for this type of rheumatic measure to actually get the political will to happen. matt: i just, i was just talking about christian sewing speaking. we have pictures of that. we

and there is a big deutsche bank/commerzbank story rumbling in the background and you wonder if it hadfor the chinese government, hna would have held onto its stake. anna: let us talk about cars and ipos. that trade tensions and brexit are not a factor in the ipo. ruth: they have been telling investors that they would like to be compared to ferrari. anna: la grippe multiples. ruth: absolutely. multiples.xury ruth: this may be a good time to do it because everyone is talking about how with brexit, if it goes through, the auto industry will not be severely affected. it does seem like a good time to exit right now. anna: is there a premium attached to double 07? ?- attached to 007 a lot of hard news for you, matt. the stock of the hour that we have for you is more closely related to aston martin and two for murray then it is -- and to ari.y -- and to ferr items and notry the same as purchasing a vauxhall or whatever else you make over there. has decided to name a ceo for the first time since they decided to get rid of the position. 10%, more than the 8% estimate we had in our survey . lux

i was asking peter dixon of commerzbank, where is the line of the sand where we get a rally or selloff? we have a number of 2.4%. >> there are three stories here. it is very captivating. the short-term focus is very much on the deficit target. what we have to see is how this budget debate default in beutel in parliament -- t-wolves in the italian parliament -- devolved in the italian parliament. that has created that friction. so long as the economy stays in government, the markets are going to see this as a rite of passage. to fall the markets below the risk pricing of italian btp this year. you,time i was talking to i was happy to say 10 year yields above 3%, there's a lot of risk. now that the issue of italian membership in the euro has been shelved, there is little chance of another early election becoming another referendum of euro membership. that means trading italy like you would trade -- now that we have seen markets come down, those views have been -- , do you thinkmber those yields are going to come down? the markets are somewhere below 2%. we needed to see something more eu

manus: surely the regulators -- you have commerzbank, deutsche bank, the rumor that the government iso stand by. what is going to stop its elevation? >> the balance sheet. italy needs domestic consolidation. caps on is ok, but it is not great. capsule is ok, but it is not great. lloyds makes no sense at all. manus: i do not want to blame for that particularly. it is quite a low bar, it's cost-cutting target. the have a lot of issues to face. a lloyds or abm deal makes no sense. those banks are in capital return mode. santandertalked about , but ubs, we were discussing this, the fact the cohead of the investment bank -- is that going to work? ego, as weall about know with investment banks. you have one looking at the trading side, one looking at the fixed income, client solutions side. maybe. it comes down to how they are paid in with their reporting line is. deutsche bank, you had co-ceos and cohead of and business banking. analyst, andnks opinion from the bloomberg intelligence team. always entitled to an opinion on anything to do with markets. he stays with us. juliette saly standin

the ceo was responding to a question about a possible merger with commerzbank. is u.s.ortive of the idea of combining the country's two largest banks. germany begins the trading day at a nine year low. the power market may be going away soon. siemens hasters say a good chance of winning a bid that ge was also going after. thank you so much, emma. ge, what is left? david w: cannot catch a break. alix: literally cover what is left? what business will be left that will make a difference? david w: they cannot sell turbines to iraq, for goodness sakes. you have to feel bad for them. alix: that is going to have a nine year low. staying with the commodities, i promised you the nerdingness. soybeans really caught in the tariff trade. prices down 12%. china imported 9 million tons of soybeans, as of last month. a third is coming from the u.s. still with us is david maclennan, carville -- cargill ceo. dave: if there are any soybeans getting him now, it is low quantity. the chinese have made it clear there are not -- they are not going to take american soybeans. they will find alt

still with us are david owen of jefferies and euro-area -- and esther reichelt of commerzbank.oking at a chart of inflation in the eurozone. headline inflation a little bit above are right at 2%, the white line on the right. inflation.it on core how do you see the inflation picture right now in the eurozone? payrolls in the ecb measure is running at 2.2%. it has had a pretty decisive pick up. that will lead to a conversation for the employee. wage inflation will generally rise in the eurozone. that is one key thing to focus on to it core inflation is still running around 1%. at the prop of the day, i think the ecb will have more confidence -- at the end of the day, think the ecb will have more confidence. that matt wasdp talking about, that is all about the history, not about where we go from here. loan growth in the eurozone remains reasonably robust. mario draghi should not talked on the recovery. wage inflation is the key. alix: a couple of the sentences lookingabout they are at incoming data when it comes to bond purchases and they anticipate to end asset purchases in decem

that is from the ceo responding to her question about a possible merger with commerzbank.rnment officials support the idea of combining the country's two largest banks. much.hank you so george.us now, i want to tell you first about our fed special coming up tomorrow. the former vice chairman of the federal reserve system will join us. 2:00 p.m. tomorrow, scarlet fu weeding our coverage. will be greathere curiosity as to where the fed 's. let's go right to the press conference. what will you listen for? george: really just the telnet powell sets. really their conviction on where we are headed from here in any concerns about inflation. if there's any mention on financial imbalances, which has been a hot topic among a lot of fed speakers. tom: i'm thrilled to have you here after tony yesterday. we have george with a different world than the short-term rate world. let's bring up the 30 year bond, the old benchmark. up we go off the present selection. there is every indication here that we are breaking out of a 320. are we and what does it signal? george: i would not get so

stephanie baker who has been following the trump demonstration and peter dixon from commerzbank.p next, record temperatures in europe made it difficult for holiday companies. how are they planning for future heat waves? we will speak exclusively to the chief executive of the tribe -- of a travel giant. we have some interviews you don't want to miss. you can also talk about dollar dynamics and foreign-exchange. number bloomberg area -- -- bloomberg. ♪ francine: economics, politics, finance. this is "bloomberg surveillance." i'm francine lacqua here in london. h whatcheck in wit is happening around the world. colin kaepernick has been tapped as one of the faces of nike's just do it campaign. ing is putting $900 million to settle a money-laundering investigation. executivelace, the jd is back to work in china. in second place, trump cancels is labor day plans as he prepares to confront china and canada over trade. competition over trade managers and china has pushed pay hikes. china is set to be exploring a merger between two of its wireless carriers. bloomberg says the combination