commerzbank down.rclays. >> for the bank overall, we feel quite good with the first quarter. >> we are pleased with the results. and thece choppiness feline around equity capital markets and m&a activity around the world. march,the second half of market conditions and investor sentiment changed for the good, both in the absolute and relative to last year, so we had a strong finish of the quarter, which is now coming a little bit into april. in the macro space where we trade fixed income, securities, credit, we had a good first quarter. u.s. dollar base falling only 3%. >> if i look at asia and china, it is indeed a quite clear sign that the correlation between the recovery of the equity market in the first quarter was definitely head of the investor sentiment recovery. >> we talked about a progressive increase in our dividend as our earnings grow, and we will deal with issues like buybacks at a later point. >> our ambition is to reach up to a billion and we will implement buybacks in the second quarter

we are seeing commerzbank shares react negatively does this suggest that commerzbank's options are moreimited? it's the same reasons that these discussions have failed. i guess nobody really is going to pay a huge premium for commerzbank currently because look at the profitability, look at that business outlook look at what kind of story you are buying into. it's a cost cutting story. you, anybody, who is going to buy that lender or take over that lender, will have to cut costs ruthlessly in order to make it viable on a long-terp basis. take, for example, ing they have digitalized their business tremendously. what that would mean for their business model replicated in commerzbank would mean, huge round of cost cuts, job cuts, and also that would cost the bank a lot of money. access to 18 million retail clients here in germany. the question is to what prize. back to you. >> the deutsche bank side of things you mentioned the dws part of this puzzle. this has been really a side show over the last few weeks. this presumably ramps up pressure on deutsche bank to potentially do something with

guest: i think it is more of a combination with commerzbank, as commerzbank is clearly a takeover target. we can discuss later if it would be welcome by the government. ing is interested in talks with commerzbank. we had this afternoon a conference call with the ceo of commerzbank, but he did not answer any question in this direction. therefore, the market is speculating on this, and maybe that is not good for ing. guy: if you take a look at why these talks failed and take a look at what the union said about cost cuts, does it highlight how difficult it will be for deutsche bank and commerzbank? guest: i had a different view on that. please take in mind, from my view, the talks were not initiated from commerzbank or deutsche bank. they were initiated from the german finance minister. guy wants to rescue deutsche bank, not commerzbank. if you look at the earnings of deutsche bank, over the last four years, they have released .bout $10 billion lost the economy in germany is worse than that, the deutsche can't survive. therefore he would stabilize the earnings of deutsche, so they .ere focu

it is not about commerzbank.roblem with deutsche bank is not commerce issues, it is these big holes in their financial seat it is the money laundering scandal, real estate issues with trump, nobody wants to merge with that bank since you do not know what you are buying. is since thelable germany owns 51%. it will be in a weak position because we don't know about the next six months. matt: i guess that deutsche bank needs money, but it would cost money to buy commerzbank. daimlernot like a merger, they would have to raise 10 billion euros in capital. so why on earth would it be a good idea for christian sewing and team to buy commerzbank? >> he needs a partner. and a german solution is easier to sell to german shareholders and german sources of money than an international solution. suisse explains to their shoulders why they should put money in and there are a lot of? it seems to be the user solution, but when i woke up this morning, i was really surprised him a but it is smart for the italian. it is a major game

if the plan falls apart, commerzbank would be on the market. seem to make a lot of sense. >> thank you so much. joining us on set, the co-cio. great to have you with us. want to get your first reaction to this news. sockve been following the of a commerzbank merger for a while. how does it figure into your investment? perhaps looking at german or other banks? >> not surprised whatsoever. the strategy is about building and continuing this pan-european strategy. the person credited with theding the bank, is one of key investment bankers and can architect of this deal. , aould go one step further nextoes do a german deal, as france. >> the possibility of cross-border deals. we have a headline. we have bring that before we move along. this is that you g.m.. the agm. going on as we speak right now. more cost cuts to come. over 60% of the plan, $1 billion cost cuts, will be completed by the end of 2019. the presentation. big cost cuts to come. how much will be in europe? pressing calls. more to come from him. let's get into the rest of the markets. j

logic,e is no commerzbank does not need this deal.litician you had on earlier was right, there are a lot of open questions. this is a deutsche bank concern. you were reporting last week that they need a plan b if this is not happen. there are planning on raising value as a way to allow deutsche's to access the capital it may wire to satisfy regulators. this is more about deutsche's then it is big banks in general. matt: we heard about the plan b for deutsche bank, owned what you think about the plan b for commerzbank -- i wonder what you think about the plan b for commerzbank. does it make sense? does it make sense for someone from the bank from italy or france to try and make the acquisition work? basis, theategic commerzbank franchise being so it is one many lenders in europe with like to have in its portfolio. whether it is a french bank or ing put its hat in the ring, i'm sure there will be considerations. clearly, there will also be political considerations. i do not think necessarily that the government having tried to find thei

commerzbank skoer in an internal plel has admitted somewhat that the loan basis for commerzbank is note right way that's probably why we also get all these expressed interests from various parties now in case deutsche bank or commerzbank merger is going to fail. that's back to you >> so many moving parts here we look forward to finally getting some clarity hopefully about the future of commerzbank, deutsche hopefully in the next couple of weeks. patrick armstrong with jechlt e investment managers. you told me he hold ing stock. it's interesting what annetta is was just saying and they've made some good strides. potentially it'sated good partner for commerzbank here how do you think about it? >> be a great partner. it's whether ing will be interested in commerzbank. you and you would have to get concessions that have massive job cuts that's the only way that they're going to be attract i as a takeover candidate whether the german government allow that is. i think the model might even turn into good bank-bad bank or companies that know they have to be sold. create two different banks the

keith: the appetite is out there for commerzbank.e have a little joke that we have been writing this story for a couple years. here you have a situation with german policymakers, the german government has gone fairly far down the road of being open to some kind of deal involving these companies. commerzbank is the easier one to digest. ceo's elsewhere in europe that are keen to make a deal. for deutsche bank wanting to be part of consolidation, that is all very well, but it is not clear who his dance partner might be. nejra: i know you don't hold banks in your portfolio, but what is your take? >> it is a european overbank situation. consolidate the sector to actually have some profitability. holdingthe ecb is still the european banking sector back with its negative rates, which has been a drag on profitability. is that changes, that would be helpful for the sector as a whole. still, we need to consolidate and bring things back to a reasonable scale some profitability can improve. that is the real problem. ofra: we have had a lot earn

alix: what do you like better, commerzbank and deutsche bank or commerzbank and unicredit? emma: i think it is fascinating that commerzbank is the bank everyone wants at the moment. this is pretty low valuation across european financials. we talk about trade all the time , but frankly the financial sector is much bigger portion of this market. the lack of operating efficiency, the lack of profitability. there's a tremendous depressed sentiment towards the sector, a huge reason why europe is underperforming the rest of the world. there does need to be some sort of catalyst to entice the investor back. you pointed out it might not be bad for unicredit. david: at least it dilutes it and distributed over more assets. alix: gina martin adams and emma o'brien, thanks so much. appreciate it. you can check out more charts at g tv . this is bloomberg. ♪ ♪ viviana: this is "bloomberg daybreak." italy's unicredit is preparing a bid for commerzbank if german negotiations fail, according to "the financial times." this is the latest twist in merger talks between deutsche bank and its

commerzbank and deutsche bank. not enough benefits outweigh the execution risks and capital requirements. deutsche bank moves to plan b. global bank earnings, the good, the bad, and the ugly. barclays says the market is challenging. nomura fights to survive. big profits. facebook delivers double-digit revenue growth. s&p numbers report today. david: welcome to "bloomberg daybreak." we have earnings out as fast as we can talk. bristol-myers is out now. they beat on both sales and earnings-per-share. they had first quarter sales revenue of $1.8 billion. adjusting earnings was $1.1 billion. they are up in the premarket about 2% now. alix: ups also out. earnings and revenue come in a bit light. they do see they see -- they do say they see full-year adjusted earnings up. in terms of where they might have seen a little bit of weakness, they seem to miss on both the top and bottom lines. that stop getting hit at 1% -- by 1%. david: we also have comcast out now. they beat on earnings-per-share. they also did a bit better o

commerzbank to the upside, nearly 3%.it hand and potentially interested in an acquisition of commerzbank if deutsche bank falter. and saga limited falling 30%. they cut the dividend, a profit warning and some write-downs. now let's bring you a little bit more news on the markets that you should be watching out for and what we should be really worried about. let's get back to trevor. you look at the yield curve and a little bit of negative yields in germany. but what are you really worried about out there? >> what we need to see our signs of the world economy. every economy in the world has been slowing down this year and we see the big increase in stock market volatility. see the fed go on hold, we see the china stimulus program and looking for signs of some kind of pickup in growth in the near term. this is in the context of a business cycle. the yield curve is inverting. there could be a burst of growth later in the year. the fed raises rates and in response to it -- raises rates in response to a. so much, we saw it for

the germans own a portion of commerzbank. it would be more interesting to have commerzbank deutsche bank rather than unicredit. also thentops have value strapped recently. alix: if we get a tie up, does that make them less of a value trap? until you see sustained loan growth not only in europe, but in the u.s. -- at the bend high-growth and cyclical upside has been very stagnant, 2% to 3% taylor: without stronger growth, which doesn't appear to be happening -- 2% to 3%. without stronger growth, which doesn't appear to be happening, it does not appear you will get that revenue and earnings boost you would think operating leverage would provide. david: but that is fundamental economics because the interest rates are too high. troy: you have a super flat , evencurve, slow growth slower loan growth in a slow growth economy. if you think of why u.s. banks have underperformed expectations, europe is a similar situation, but decidedly worse. alix: so what is the thing you care about in bank earnings for the u.s.? troy: it would be b

discussions with commerzbank have fallen apart. >> yeah. i think it's kind of interesting point in time for deutsche bank. that's at least what you could when talking to the executives that they were not so much it was kind of a bad idea to start those polls. it was more or less initiated a bit from the political side of things it i guess they've had a little bit. at least that's what is rumored. the political pressure the cfo of deutsche, whether this was true, whether this was, like, completely only politically motivated. take a listen. >> we've bin consistent we've never -- our to enter the discussions and also to collectively together to discontinue the discussions was a private sector commercial decision i can't really comment on them the political reaction or thoughts about the possibility of market consolidation in germany. >> what's the future what we have in part -- what we have for potential new strategy or like some convincing new steps were necessary >> first of all, we're focused on executing our existing strategy we think that

i wonder if the commerzbank deal would have resolved those issues.out with a solid sense of numbers. the drug sector is one of the best-performing stock sectors in europe. key drugs performing strongly. there are highlights in europe and the drug sector has been under pressure, particularly stateside. is the see that, there top end the story, media and telecoms going back. you do not want to be first out of the gate on something like emissions. media telecom and health care doing well. let's take a look at the bottom because this reinforces the problems the london market is having. basic resources down 1.1%. it is the oil and gas sector which is fading now, brent is trading down 3.5% as a result of which that is being translated back and those equities. that is a look at the european close. vonnie: here in the u.s., we have the tenure at 2.50, down from where we started the week after the strong gdp data. under the hood, it was a buildup if inventory and a slowdown in consumer spending. you will have to wait to see that picks up again. the dollar ind

i think that's the main hurdle when we talk about the deutsche bank and commerzbank merger. it depends how much political will we're going to see going ahead from berlin to actually, yeah, back the bang against the union where are we going to see that merger again. >> you're saying essentially authorities not clear whether they have a preference unions against the idea of an all german tie-up. any indication that shareholderings would prefer a deal the italian bank over that german consolidation >> i mean, in a way it would be fair just to put the assets back because in the end it's the taxpayers' money, and the stake berlin is holding in commerzbank. that's clearly what we're not going to see again, with all that protectionist rhetoric flying around across the world, also berlin is kind of, yeah, has that protectionist of how they want to have a german champion, it seems, a bank which is german-owned because the narrative in berlin, people seem to believe, is that the moment the next downturn is coming any foreign bank will retract from the markets, and then the german reta

joe: deutsche bank with parts of talks to acquire commerzbank.ning us with more is nicholas --bar, founder and editor of commerzbankger with really solve any problems? prof you look at it on a forma basis. deutsche bank is high leveraged, it has more derivatives as a percentage of capital than any other large bank in the world, it's trading arm has got a reputation for being very risky. it is trying to reduce risk but it doesn't seem to be able to do it very well. that you've got this midmarket kind of a play on germany and commerzbank. sticking them together, you don't get something that is much more profitable or much less risky. there needs to be a kind of transformation to take place for this thing to really work. romaine: what are the other options than for deutsche bank and commerzbank if they don't combine? to combine, they need to drastically,sts which is a politically difficult option, cutting staff dramatically, tens of thousands of people who are unionized, politically influential, or cut assets, which is also difficult because you are

talks of commerzbank over a merger are continuing.his was supposed to be the weekend that commerzbank and deutsche bank decided whether to intensify or break off talks. what is the end result? did they intensify talks? reporter: the talks are ongoing, as far as we know. there was speculation that talks would have a significant a filament over the weekend, but -- significant development over the weekend, but no development on that front. nothing really material there. it is possible we will see a board meeting this week, and which stage we could see a more formal continuation of the mandate, but we are still working on the assumption that we are not quite there yet for the next step. vonnie: what might be the sticking points? what are analysts saying needs to have? -- needs to happen? : the analysts are looking for more details to be announced, but between the banks themselves, there's a lot of finer points to be worked out. commerzbank is very keen to know what is going to happen to deutsche bank's investment bank in the future. that

for more on banks, deutsche bank and commerzbank, the collapse of merger talks, commerzbank may end upout to the lender and the government. officialss spoke with when it bought a stake in commerzbank, fueling speculation that may arise as a suitor. representatives at socgen and santander have expressed interest. joining us is alison williams. if you look at what deutsche today, theut with share price is significantly lower. how do they reignite investor appetite after the botched merger deal? alison: the deal with deutsche bank given the share price over the last several months, they need to shore up confidence. it is good that we got the commerzbank option out of the way. i don't think that solved anything. there were a lot of legal and regulatory issues, combining two businesses that in and of themselves are inefficient because they have never -- not been able to cut costs. optionood to get the bad out of the way, but the clock is ticking in terms of introducing a new option. the markets have not helped. we saw improvement throughout q1. april, everything is great. we have seen this

deutsche bank and commerzbank getting together. what will we learn on monday morning?versee what the course of the next two days. one of the interesting things is that what seems to be the ceo's of each respective bank, certainly on the commerzbank side, they are pushing back against not only skepticism among policymakers, among alsossors, but there is skepticism within the ranks of the banks themselves. the ceo of commerzbank for the second time in a week issued a why explaining the reasons a merger made sense. his audience was internal, not external. it comes on a day we are seeing french banks back the idea of cross-border mergers. is there a potential for a bank from a different country to come in? that is one of the reason our sources speculate the finance ministry in germany pushed for this combination -- has pushed for this combination for so long to try to ensure commerzbank is not bought by anon german bank. they talk a lot about national champions. there are a lot of reasons why it makes sense but structural reasons why it does not make sense. the regulatory

could potentially step in for commerzbank. would a cross-border deal in europe be a better thing in terms of the european banking sector? alman: when the deutsche bank/commerzbank deal got serious a couple of months ago, i was talking about how it is a terrible idea because the two don't really make sense. they don't have similar businesses. it is hard to cut costs in germany by cutting branches and firing employees because that is almost impossible. there is definitely more sense to a cross-border deal for either of them to find complementary institutions that would actually help their businesses expand into areas where they are not, and cost cutting would be much better that way when they only cut the areas where they are together. but there is a problem in the article talking about unicredit. the german politicians do not like their banks to be gobbled up by foreigners. smaller ones, maybe, but the biggest ones, deutsche and see them asy national champions, and they want the control in germany domestically. there's a huge p

bank -- iscommercial commerzbank is in communication with deutsche bank.he deal could help commerzbank get scale -- the scale necessary for investments to pay off. representatives are opposed and hold half of the seats of the supervisory board. norway's sovereign wealth fund will start selling emerging-market government and corporate and fx as part of its overhaul of its 300 billion dollar fixed income -- free hundred billion dollars fixed income holdings. the emerging markets in mexico is one of the big holdings of that fund. that is the business flash. vonnie: let us take a look at u.s. markets. following the jobs report. equities are sanguine. the dow is up .2%, the s&p 500 up more than .4%. it picks up -- it picked up slightly. apache and petroleum are the top performers. speaking of which, crude oil is at .7%, 40 sites -- $.45. the 10 year yield is back down to 2.494%. the two cent spread is back under 15 basis points. index, have the dollar stronger mostly on sterling today. it is down .5%. one 30.18. european close is next. >> 30 minutes day -- 30 m

deutsche bank and commerzbank have ended their talks on the tie up that was there for a while.throws the futures of both lenders into question. earlier, bloomberg spoke to deutsche's cfo. guest: we envisage that over time, industry consolidation will take place in europe, and deutsche wants to be a part of that. the timing of that remains to be seen. we've talked about doing our homework to continue executing on our plans, executing on the restructuring of the company, and the improvement of our shareholder returns. guy: giving us a sense of what happens next. what happens next? that's got to be the big question right now. both stocks under pressure. let's go back to frankfurt now. steven arons joining us from there. there was a lot of talk about the need for plan b. what does plan b look like? that is the question everyone is trying to answer. we don't really know yet. we know they are working on a plan b. the problem is it can't be a very big plan b because that would entail more restructuring costs, and deutsche can't afford to spend more money at this point. a small restruc

shares andnk commerzbank shares decline.emocratic presidential contender joe biden says he asked president obama not to directly endorse his campaign. obama did offer praise for his two-term vice president saying they forged a special bond and remain close, but biden said whoever wins the nomination should do so on their own merits. the 76-year-old enters a crowded runners with a voter base that is younger, less white, and more female. sri lanka's government has sharply lowered the number of people killed in the easter attack. around 250 people died down from an earlier told of 300 59. they say the chaotic scene after the attacks made it difficult to count an exact number. cautioning against all but essential travel to sri lanka saying further attacks may be likely. shery ahn: the trump administration may concede to a chinese proposal that would give less protection for u.s. pharmaceutical products. it is a move likely to draw opposition from the american drug industry. for more, let's bring in bloomberg economics chief econ

when we talk about deutsche bank about to buy commerzbank, one of the problems is commerzbank is holdingt valued well higher than it should be. do you think if the ecb comes in wehelp with tiered rates, could see relief for equity holders in banks? marija: i think anything the ecb does will be helpful, but i it will solve fundamental problems with european banks. there are low demands in europe, loan growth, minimum wage. we draw the pie chart to show loan growth in europe from ecb surveys. to decade high, which is 2.5%. i think that's the story, decade high. that's a challenge european banks are facing. i need make loan growth -- anemic loan growth. anna: and somewhat say there isn't demand for it. thank you very much. marija joining us from state street. she stays with us on the program. let's check in on the markets. in terms of the session, up 1/10 of a percent this morning, following a lack left the -- lackluster session. samsung earnings we're talking about, as well. this is bloomberg. ♪ want more from your entertainment experience? just say teach me more. into your xfinity voice r

easier to execute would be commerzbank and hpb.he's. francine: what happens to mergers if they are done for political interest and not financial interest? davide: the reality is you need regulatory approval, which is not political. i expect given that we are talking about 20,000 to 40,000 layoffs, you will see some form of government intervention. case thatink it is a is happening as the commission is changing. the commission will not be ultra focused on the potential state aid. francine: how much cross-border consolidation do you see in the next five years? if you have a national champion emerging in germany, is that a catalyst for french? what does that mean for investment? davide: i do not think we will see many cross-border as long as we do not have a single banking market. a mortgage in france is completely different from a mortgage in germany or italy so having a cross-border bank does not help. as long as we do not have a single banking product market, we will not see cross-border banking because each country runs its own ba

anna: let me ask you about the future for commerzbank.ou previously talked about how you did not like an alderman answer. do you like a cross-border solution? what would that look like? unicredit? >> in general it makes more sense. at the end of the day you have to look at any individual trade. it has to make sense. there must be added value. in general it is not favorable. you need european markets. border would be a good solution. day, youthe end of the are a free democrat. don't you think government should stay out of these things as much as possible? >> absolutely. it has done a lot of damage. you cannot take a decision like that on the drawing board. politics have to stand back. they have to look at the framework of sustainable and stable financial markets. except for the case if there is growing systemic risk rising from the deal. anna: do you think there is toway -- the return value shareholders resulting in too many politically unpalatable job losses? >> especially this trade. a national merger would have been creating a lot of jo

qatar owns 5%, the government owns 50% of commerzbank.ld form aa this national champion and meanwhile, germany is supposed to be behind integration of the european union. why wouldn't they push for more cross-border deals rather than creating these big strong national champions? danyal: that is an interesting point you make because macron is still waiting for an answer from germany. what is our vision on how to develop the european union from a financials perspective? i think the top job of the minister of treasury and the chancellor is to give in and -- answer to that. forming a national champion is outdated and backward looking rather than forward-looking. we need a strong financial market with strong and sustainable financial markets thinking about the digital topics happening. pay, googlel, apple paid, fin tech. i think we will increase problems and not solve any of them. matt: it is fascinating to get your take on this as a member of parliament and former banker and consultant, yourself. put your green party had on because this is a

jonathan: if you look at commerzbank, 75% staff, assets. going to take an unfair share of the pain. want to close the retail branches, but not the enormous inflated cost income ratio that investment banking brings. any deal won't solve the top line problems but an in-market overlap without introducing other problems. for example, deutsche bank would go up in the list with this deal. that is the last thing you want. it makes more sense probably next year at the earliest for somebody else and there has to be significant overlap because you have to take 30% of the domestic cost base. anna: systemically important financial institutions. let me ask about barclays, the potential for cuts in investment bank bonuses. i suppose it wouldn't be a surprise to investment bankers if bonuses are being cut given what we heard from a host of companies in that field. jonathan: not at all. we saw equities trading down 20% on average in the u.s. barclays has been a relative strength over four quarters but either way, if their trading falls more than midteens a

you can see commerzbank jumping 2.6% today.ve been poorly as it gets interest from deutsche bank, possibly spurred upward by the finance ministry as well as unicredit. there is no shortage of suitors for the frankfurt bank. china's solid data gives beijing room to maneuver is straight negotiations enter a critical stage. larry kudlow previously described china's economy is very weak, touted as leverage. what happens now that the slowdown may be tapering off? the head of global macro and says allocation at kkr he's optimistic a deal can be made. the u.s. will keep the 50 billion put in place. there is a chance they will back the 200 billion. president trump needs growth in 2020 and it sends a nice side, but in 20 plus years of going to china, it goes back to something we talked about two shows ago. there is a divide and the china-u.s. relations with technology, that is structural and will affect supply chains. becomes -- asia becomes more regionalized in europe will be somewhere in the middle and that is not insignificant, getti

however, uni credit owns hyper variance bank in germany so the idea is they would buy commerzbank and sort of german bank that wouldn't have uni credit over the door, it might have commerzbank over the door, so that way you would have another credible contender to deutsche bank. it is allup in the contender to deutsche bank. it is all up in the air at the moment. as i say, any final deal would need to get the approval of both the regulator and probably the german government. we will hear more about that story during the week. thank you, simon jack. that story during the week. thank you, simonjack. let's talk about other deals that have been done. the amazon founderjeff bezos is still the world's richest man despite agreeing a divorce settle m e nt despite agreeing a divorce settlement with his ex—wife. after 25 years of marriage she is getting $35 billion worth of amazon shares. but has to give up all voting rights. dave lee has more from san francisco. people were bracing themselves, weren't they, because this was very much going to be the divorce settlement to end all divorce settle

this was not given here after deep conversations and talks with commerzbank. we came to the conclusion that if we put chances and risks against each other, that we should stop the talks about this merger now. reporter: the government's hopes of the two banks combining to greater -- to be a national chicken for the finance sector have proven out of reach. deutsche bank and commerzbank have concluded the benefits would be out weighed by the risks, the recession costs and the capital requirements. the ball struggled since the global financial crisis, with the german states still owning more than 15% of commerzbank. the argument for merging, would be that theyey would cut costs r the hair and taxpayers. but combining to troubled banks would create one larger troubled bank. after month and a half of talks, those troubles haven't gone away. now they will have to get to work to find separate solutions. brent: a new poll shows that more than half of germans feel hostility toward asylum seekers. that is one of the key findings of a study by that -- and it comes despite

the possibility that unicredit would bid for commerzbank. the u.s., then s&p 500 is clambering back up. one of the better performers is all of theven after revelations from amazon cloud servers that there are millions and millions of pieces of user data. micron is down 2.8%. enthusiasm has gone a bit too far according to wall street. in fairness, the person who pointed this out has been talking about overly enthusiastic analysts on chip stocks for some time. dow is one of the better performers in the s&p. nearly 11% gains since it started trading on tuesday. we turn now to brexit as negotiators for theresa may and jeremy corbyn continue intensive talks to see compromise. someone who knows about the art of compromise is diplomat kim darroch, u.k. ambassador to the u.s. he has served in many roles in the united kingdom and elsewhere. he joins us from our washington, d.c. bureau. the future of brexit, what is it? kim: it is about negotiations going on in london between the governor -- the government and opposition. it is about the hope that the

investment bank is one of merger talks with commerzbank.ender is "firmly committed to the u.s. outpost." bloomberg has learned that they are close to a potential tie up. they started formal merger negotiations last month. the dubai national bank is reportedly considering buying rival norbank, which would over $75lender with billion in assets. bloombergs your business flash. francine: thank you. bloomberg'sn't miss exclusive conversation with five world leaders. president, vladimir putin, as well as the heads of state of norway, finland, iceland tomorrow at the arctic forum. coming up, payroll numbers i laid concerned that u.s. growth is headed to a ditch. we get into that conversation, next. this is bloomberg. ♪ ♪ francine: mrs. is bloomberg surveillance. i am francine lacqua here in london. president trump's top economic adviser says the u.s. and china are closer and closer to a deal. larry kudlow says both sides will keep an content as a work --ough the remaining issues will keep in contact as they work through the remaining issues. >> we

it is unlikely they will make a decision on this before the commerzbank deal is decided.ake an announcement whether to go ahead with the talks with commerzbank before they unveil first quarter results next friday, so that is going to be the next big development in this saga that we are all waiting for. guy: who would be the best fit? is it ubs? or does it not matter? steven: that is a good question. each asset manager has their own advantages. anotherously reported interested in dws, too. i don't know if that would be a add ait, but it would very strong asset and wealth management business. wherek the question is can i get the best for this given that deutsche bank is unlikely to want to sell the asset. it is going to be a very tricky negotiation for that. vonnie: will it help at all when it comes to a deutsche bank merger with another bank to have this cash on the books? i do think it is something that people have been singing about. on the other hand, the willingness month deutsche bank management to sell dws is extremely low. if they can avoid it, they will. what they

commerzbank could see 30,000 jobs asked.g director of the imf christine lagarde as well as the governor of the bank of italy. that is all coming up. this is bloomberg. ♪ nejra: economics, finance, politics. surveillance. brexit divorce is now tabled for october 31 with a progress review in june. but first, theresa may must sell the extension to u.k. lawmakers despite telling the previously that a delay would be unacceptable. joining us is petered out, shadowed -- peter dow. i heard the comment that the six-month extension is in a way the worst of all worlds. is it? it isn't because we haven't got a deal at the moment and we need a deal if the -- and we need a deal. if the six-month extension insurers as rights and gets us a certain amount of progressive alignment, so be it. it is important to get a good deal. if the prime minister would have spoken to labor may be a year or two ago, we would not be in this situation. nejra: yes. and the prime minister and jeremy corbyn are speaking now. are you optimistic about the outcome o

alix: our second story is deutsche bank/commerzbank yet again.lineup of banks that want to buy commerzbank, and deutsche bank is still like, we need a plan b. jason: what is really interesting to me is, because i love the story in the bloomberg right now, it essentially says here is the lineup of people whom you be interested in this. paribas,redit, bnp socgen, santander even. tos is an attractive asset someone, and even more attractive to someone else that it ultimately is to deutsche bank. david: i also noticed there's no line of suitors for deutsche bank. [laughter] david: if any of those come in, what has deutsche bank got left? talking to matt miller earlier, i understand plan b would be a sped up plan a. that doesn't sound very good to me. alix: either way, you have to raise some kind of money if you want to buy something, and you have to cut costs. david: they've been saying that for years. alix: exactly, and it hasn't done anything. -- i haveclear in no clear vision on what they want to do with their investment bank. jason: there's this w

commerzbank plays intouge posit. hillary has a chart showing an amalgamation of all --ional 10 years yields cash national 10 year yields. when i pull up the chart, you'll see it just goes down. where is the floor here? markets allrs in i've seen are rates going down, and i have been trying to a poise that move at many points. find theoment, i don't market moves and yields go lower , but as a floor, it is difficult to say. when you get 10 year moving swiss was negative weight on the core -- on the yield, so i'm not sure there is a floor. if we remain in this high debt, low inflation, low growth is going to lower be with us for a lot longer than we expect. matt: luke will be with us for longer than you might expect as well, we are bringing him to bloomberg radio. joining us at the top of the hour, and then handed myself, tune in. aberdeen. as we approach friday's job report, the granddaddy of all economic statistic, let's say a look at what some of our top guests are saying right now. managementwealth chief economist s

a merger between deutsche bank and commerzbank could see 30,000 jobs cut.easures are also extending into the private banking world. we spoke to a.c.l. at the end of march about cutting down his banks -- two aco at the end of march -- to a ceo in march. >> we have closed. three of them already have closed. holland we closed, amsterdam were closed, panama, peru. we try to be more strategic. anna: with us now is julius baer ceo, davidional durlacher. talking to your boss essentially about the need for cost cutting. he also was talking about a need for keeping costs under control. where do you see that affecting your universe. where does julius baer cut back? david: far from cut back, we are retrenching. we are reinvesting. we have gone from one branch in london to five locations. that is a sign of the long-term opportunity here. anna: i remember talking some toe ago to managementt julius baer about the move away from london and we are in a post-brexit world, that there would be in need for those services elsewhere. is that something you are sticking by? david:

this, after the collapse between deutsche bank and commerzbank.tsche's may be forced to come up with its fifth turnaround plan for -- since 2015. a takeover deal may be in the cards for commerzbank with ing and unicredit said to be interested. deutsche bank shares fell in frankfurt while commerzbank also saw its shares decline. global news 24 hours a day, powered by more than 2700 journalists and analysts in more .han 120 countries i'm su keenan. this is bloomberg. yvonne: thanks. considering how oil markets are created, what it week -- what a week it has been for oil moves. straightr an eighth week of gains in oil. we're off some of the highs this week. down .5% andti, brent crude, down .20%. this is on the back of opec plus production cuts and the u.s. moves to tighten sanctions against iran this week. stephen: that brings to mind earnings. the most sensitive to crude price among china. different ends of the spectrum set to report monday, helping us wrap the last week for oil and earning set to come through his jp morgan's head of regional oil a

we heard from the commerzbank overnight.id we will take further steps -- if we could rolet please -- in order to increase our growth and profitability. at the end, the question would be whether it makes strategic and economic sense, and how such --odel could alix: -- look like. [laughter] david: my point is, we have a very different situation with the fed. s has done better than many european banks. why? guest: the ecb has kind of mirrored what the fed has been doing in terms of providing qe at one point in time, unwinding ecbbalance sheet, but the has really used qe and provided stimulus in many different ways. what is different in this situation is the economic status. there is less growth in europe, and negative interest rates have been very beneficial to the euro zone in terms of gdp growth. your point is to say negative interest rates is sustainable over the medium-term, and probably not. having said that, if you look at , it is quitees important to continue to support and stimulate the economy. this is exactly the stat

deutsche bank said it had concluded that combining with commerzbank would cost more than it would savera bailout had supported the merger but it had been opposed by many investors and powerful labour unions. facebook has said it will set aside more than £2.3 billion to cover the potential costs of an investigation by us authorities into its privacy practices. the social media giant also revealed that its advertising sales in the first quarter of this year jumped by 26% to almost 12 billion pounds and that the number of users logging on every month had grown by 8%. sainsbury‘s shares taking a real battering today because of that blocked merger. it's also affecting other supermarkets too, tesco and ocado. and the builder taylor wimpey also performing poorly and dragging on other construction stocks after it warned that the cost of building houses was going up. that's all the business news. the rspca says it received 15,000 calls last year about exotic animals that had been abandoned or neglected. whilst a pet snake, turtle or bearded dragon might sound more interesting than owning a cat,

shares in commerzbank have been rising. of what's ahead in the us, today. watch out for the latest round in elon musk‘s legal battle with the financial regulator, us security and exchange mission. they want a new yorkjudge to find the tesla ceo for being in contempt for violating the terms of a court approved settlement in october. the commission says there must be a company lawyer to approve the tweets from elon musk, but he blatantly disregarded the agreement. meanwhile, a jury but he blatantly disregarded the agreement. meanwhile, ajury in boston is expected to hear closing arguments in the trial against the one—time billionaire and entrepreneur, mr kapoor. he and four collea g u es entrepreneur, mr kapoor. he and four colleagues are accused of conspiring to pay doctors bribes to prescribe patients and addictive sentinel spray, charges they deny. on the earnings front, constellation brands is expected to report a drop in sales as closed whether likely hurt the sales but wine sales didn't do much better after the weak per

combining it with commerzbank, would create the fourth largest bank by assets in the euro area.o make sure they don't get any bigger problems on their hands. always concerned about that case when they would have to wind down a bank. is usually more difficult to wind down. want to make sure it's safe. they want adequate capital buffers. there want to see a good business model before they can say they can list it. the latest attempt to revamp its international business was falling flat with investors who have been dying on the stock from a relative to the global fears. why is number as great -- nomura's great it -- latest cost cutting effort fallen so flat with investors? stock has fallen about 3%. the price but ratio is only about half the value of those assets. the biggest differential with their peers in 20 years. clearly, investors are not impressed with last week's announcement. the analysts want to look at the pace of the job cuts and the cost cuts. and how it's going to affect revenue. >> the slow down and it was largest car market is showing no signs of easing off yet. aut

the blue line, adding commerzbank, it would not get deutsche bank to peak levels that we have seen in the past. jason: this is why there are skeptics on this deal. also use the terminal to check out the latest headlines, because this is a fast-moving story. up next, bmw's painful push to embrace electric engines. carol: the woman who may be germany's next chancellor as long as she steps out of angela merkel's shadow. jason: this is "bloomberg businessweek." ♪ you and me carol: welcome back to "bloomberg businessweek." jason: join carol and me on radio, and catch up on our podcast, subscribe at itunes, soundcloud. carol: you can find us online. in a special section on germany, "bloomberg businessweek" introduces us to angela merkel's handpicked successor. akk has been working to shed her image as a merkel disciple. yousef: she is coming in after angela merkel who has been in office, her fourth term now. she has become the de facto leader of europe over the past couple of years. i think the people are concerned, can this woman from a small state actually lead germany the way angela merk

will you look at commerzbank assets if it came up or commerzbank itself?it deal like that make sense for yourself and the budget? jose: to be completely honest, it is something we are really not thinking of right now. we think europe needs farther progress in banking union for mergers or acquisitions to happen. we still have a long way to go in that sense, so this is something we are not contemplating at all at the moment. that's the most express response i've had from a cfo -- or ceo in a long time. jose garcia cantera, come back and speak to us again on the quarterly numbers for santander. breaking news coming through. the telecoms player is saying to us that the have reaffirmed their objectives for 2019, excluding spain, from a network deal. vodafone, they have signed a network sharing deal with vodafone in spain. this is an important point. it will see an initial of around 300 million euros spread over a period of four years. --y take the opportunity we to reaffirm objectives for 2019, excluding the spain network deal. they are convinced an entire netw

as of yesterday, deutsche bank and commerzbank had no plan to disclose their intention to merge by thisat's when deutsche bank is scheduled to report earnings. according to "the wall street journal," the two sides are said to be far from an agreement. the banks have been bogged down over issues including lack of investor support and union opposition. we are moments away from our interview with the ceo of ubs. that is bloomberg. ♪ -- that is next. this is bloomberg. ♪ >> this is "bloomberg daybreak: europe." the dollar very much in focus because we have seen it had a four-month high, mainly driven by the strength yesterday. today, we are holding on to that. dropped tothe euro an almost two-year low. course, we have heard from the boj today as a decision comes in but heartening its pledge to keep interest rates also lit -- ultra low into 2020. the yen rising with holidays looming. 10-year bund yields back into negative territory. we see global bond heels drop yesterday. the treasury yields also moving lower. we have had various signals around the world of central-bank dovishness. australi

viviana: deutsche bank and commerzbank and their merger talks. samsung puts its full on hold. >> this is a reputation and pr marketing nightmare. viviana: the u.s. clamps down on iran. >> the hardline no waiver was a surprise. viviana: u.k. banks brace for breakfast it. financial regulators speak exclusively about how to manage the transition. toit would be a big mistake lose contact and isolate ourselves. on the: economists state of global growth. >> we do not see signs of problems. >> if the fed did not do what it did, we would see panic in the bond market. viviana: it is all straight ahead on "bloomberg best." viviana: hello, and welcome. i am viviana hurtado. this is "bloomberg best," the most important analysis from bloomberg television around the world. lookgin with a day by day at top headlines. monday, an outpouring of shock and empathy after deadly bombings on easter sunday across the south asian nation of sri lanka. deadliestasia's terrorist attacks in years has shattered the calm in sri lanka. more than 200 people have been killed. dev

combining it with commerzbank, another sizable bank, would create the fourth largest bank by assets ino area. they want to make sure they don't have an even bigger problem on their hands. they are always concerned about the case when they would have to wind down a bank, and he bigger ones are usually more difficult to wind down. they want to make sure it is safe. they want to see adequate capital buffers and a good business model before they say you can go ahead with this deal. vonnie: part of the problem might be that if there were to a some kind of crisis, would combined bank be too big to fail? we still haven't solved that question yet. with the ecb feel responsible if it were to allow this merger to bail-ou, to then be the ter if necessary? steven: it is difficult to say. the crisis a decade ago brought home to everyone how big a problem it can be for national economies to have big banks, and how big a burden it can be on taxpayers to bail them out. that is exactly why the ecb today is a financial regulator. they want to be confident that they can say this is not going to be a prob