deutsche in frankfurt, currently down 2.4%. a 98% drop in quarterly pretax profits from a year earlier, which missed expectations. the german lender hit by 1.2 billion euro increase again in litigation provisions and ubs, the bigger fall here, currently down 5.5% at the moment in zurich. third quarter earnings were above forecasts, but the swiss bank is warning of growing provisions for litigation risks continuing into next year. said it would defer its aim to achieve a group return on equity of 15% by 2015 by at least a year. so we're going to get more on both deutsche and ubs. annette is in frankfurt, but first, let's get over to carolyn in zurich. carolyn, it seems to be more uncertainty. deutsche could put a figure on future costs. ubs doesn't seem to be able to. >> yes, definitely. and that's a big concern for investors this morning as they learn that the return on equity target of 15% by 2015 is not going to be achievable. that will have to be pushed out at least one year. now, better news on the capital level because whi

bat nud for deutsche bank. other losers here on the german market set. >> annette, thank you very much for that. one of the prmpers today is ferrovial. 2.6% higher after posting a 2% rise in profit. i was looking at this stock. the performance so far this year is very solid, despite a brief dip in june. let's get over to stephane for more. stephane, reaction has been fairly positive today. >> absolutely. driven by international business, that includes a 37% growth in the united kingdom. ferrovial is the main shareholders of the heathrow airport. it would limit how much the airport could charge to airlines for the use of its facilities. they're concerned that such decision would drive investors away from the london heathrow airport. last week, they sold an 8% stake in the airport. the london-based university scheme last year already sold more than 10% of the holding and it now has a 25% stake and the deposit remains the largest. 40 cents will be paid in december between 25 and 30 cents will be paid at a later da

donny deutsch watched baseball. >> he just hates the red sox. >> just let donny deutsch be donny deutschs vikings sunday night. opening kick off. patterson with minnesota and he will go all the way. you can't go any farther than 109 yards. but unfortunately the vikings got the early lead and wouldn't keep it very long. aaron rogers, two touchdowns in the first half. green bay's offense dominated this game. the vikings had only three plays in the entire third quarter. packers win it 44-31 and the vikings are back. to denver, broncos trailing the skins 21-14 in the fourth. fourth down, peyton manning in the end zone. that ties it up at 21 and the broncos go on to score 24 unanswered. they win 45-21 and again, rg3 couldn't get up for the count in the fourth quarter. it will be tough to see his career, how long it will be. calvin johnson, incredible day in fantasy football. 329 yards. that's the second most in a game in nfl history and with a game on the line in the fourth quarter, the lions on a come back drive, johnson comes through in the clutch. >>> 40 yards. and here is stafford's pass

morgan and deutsche bank something very akin to this over so as long as we can keep this game going at least as a tactical level that's what they're going to do let's talk about codes from a warren buffett who recently said that the u.s. federal reserve is the greatest head fund in the world now warren buffett meant that as a compliment your thoughts are well i think they are rich fund but then if you actually look at the consequences of that it's very interesting because if it is a hedge fund and eat essentially holds a lot of u.s. treasuries you can say that china is a hedge fund as well because the chinese central bank truckload of these as well so basically when you talk about the underlying premise of it inflating bubble of credit well every official is jewish and which can do this and leverage itself up to the gills is a hedge fund we live in a hedge fund world and that's because we have never dealt with the fundamental problem that we needed to do it which is the excessive date did driven growth the imbalances the entitlements nobody wants to deal with any of those because they.

morgan and deutsche bank something very akin to this over so as long as we can keep this game going at least as a tactical level that's what they're going to do let's talk about coats from a warren buffett who recently said that the u.s. federal reserve is the greatest head fund in the world now warren buffett meant that as a compliment your thoughts are well i think they are a hedge fund but then if you actually look at the consequences of that it's very interesting because if it is a hedge fund and eat essentially holds a lot of u.s. treasuries you can say that china is a hedge fund as well because the chinese central bank truckload of these as well so basically when you talk about the underlying premise of it inflating bubble of credit well every official is jewish in which can do this and leverage itself up to the gills is a hedge fund we live in a hedge fund world and that's because we have never dealt with the fundamental problem that we needed to do it which is the excessive date did driven growth the imbalances the entitlements nobody wants to deal with any of those because the

it's what they think it's going to do. >> yes. >> carl, senior economist at deutsche bank. how to narrow the gap between what the government takes in and what it spends. that shortfall is called the deficit on wednesday the treasury department said that the government took in $75 billion more than it spent in september. a spur plus: now that's just one month and the deficit has not gone away but it helped narrow the deficit to just $680 billion. hey, don't laugh at that. that's the lowest since 2008, and it's a drop of 38% from the prior fiscal year. deficit spending widened during the recession, we know that. but it has since narrowed because of economic recovery, spending cuts and especially tax hikes because it took affect this year. bank of america said that the u.s. could file a civil lawsuit according to the wall street journal citing a regulatory filing. b. of a. losses could rise above $5 billion. big banks are facing a rash of legal action when the economy went south and the housing crash. >>> jennifer hudson, kathleen sebelius, and how the battle to save or kill o

deutsche telekom are saying they are determined to protect their customers information from prying eyes of the spies. >> wikileaks partner website. he thinks rerouting data is not enough to ensure privacy. >> in germany, we have a situation that the trustworthiness of our foreign and interior intelligence service, watching their high level of cooperation with a national security agency, and with a british government medications headquarters, it does not make them trustworthy at all. if they can intercept this stuff, they might handed over in bargain to be americans. . that is not helpful. this means what is to be done is to ensure on whatever level in whatever country that encryption for the end-user is becoming available, easy to use, and as a standard tool. you send postal letters in an ample open so you should with your e-mail. >> brazil with plans of launching e-mail services. i was -- it was explained earlier to me what exactly led to the initiative. >> it will be a new national service rendered by the federal processing data agency from brazil, not only to government but all citiz

. >> deutsche bank says his company has been making contingency plans. he says you don't want to go into this. this is a very strong spreading disease. for many, the trouble could be summed up this way. people think it will be so catastrophic, there is no way they will let it happen. i'm not quite sure how you factor that in if you are an investor today. >> i do notice because of that, a great deal of complacency almost. in speaking to investors and asking that managers out there are still, perhaps, as they should be, convinced they will reach a deal and this will not occur. that rising level of complacency leads you to question whether, in fact, this will be the time. by the way, the mechanics of how the senate and the housework, it does take time. it is not going to happen today. we are looking at tuesday and wednesday and down to the wire. >> we are going to go into this cone of silence as the treasury secretary is concerned. he can't comment on the day to day finances. some say the big due date is the end of the month where big treasury payments are

e-mails it's only going to stay in germany and hopefully that will try and convince consumers that deutsche telekom of the people to go to because the n.s.a. have less ability to get their hands on that data now outside of europe we've also seen developments in brazil where they're wanting to put in place a new completely encrypted e-mail system that was after allegations revealed swiped scale snow. being on the brazilian people by the n.s.a. as well so we're starting to see those demonstrations turn into really concrete action taken to try and cheer up people's information and keep it away from the prying eyes of the n.s.a. it seems certainly pretty you talk about concrete action and certainly seeing in various parts of the world in varying continents countries are battening down the hatches with personal and private data thank you. well though we did speak to crystal hole still here in our government and business consultant he thinks that even though germany's reaction looks like outrage it's nothing but a joint performance with the u.s. . i don't believe a bit that they were not listenin

and let's now bring in a list of all the chief economist and head of the analytical department of deutsche bank in russia great to see you here in the studio so how likely is an american default european well i think it's certainly not our base the base case scenario we believe that at the very last moment probably but there will be a breakthrough and agreement will be reached i think there's too much at stake in terms of what a default. or for there are delays in reaching the compromise would mean for the american economy so this is the case for the u.s. economy this is the case for the global economy as well so our view is that there will be a compromise and there will be a deal right but what would be the replications for the likes of russia and china well i think for russia as we've seen before with similar cases in two thousand and eleven. certainly the main transmission mechanism is through will places so pressure on commodities pressure on oil prices would signify essentially pressure on russia's economy and financial markets and then the other channel of course is capital outflows

. >>> now on book tv, iian berman predict the collapse of russia deutsch to the internal social democratic decline and external challenges from china. it's about one hour. thank you. i love that john is making his way off the stage so when you throw things at me there is an unimpeded gift. thank you as always for your interest and to the heritage foundation for hosting me. always nice to come out and talk about issues i work a lot on in the privacy of my office and i think i will share it with a broad audience. let me start where john ended which is to talk about the external first and focus on the internal.

david: shares of expedia fell today following a rating cut from deutsche bank.cole on the floor of the new york stock exchange. why the downgrade? >> reporter: well, they looked at expedia and what's been going on. first of all, they face intense competition, that seems to be an ongoing story. they had some management changes over at hotels.com. the stock was down about 6% today on this deutsche bank downgrade to a hold from a buy. they put a $51 target from $66, you don't want to hear that if you own the shares, and the fact that they face this competition, so that's why they actually made this move overall. and then they said in this note from deutsche bank that all of this may actually cut into their numbers. and you may see -- a lot of mays, but not good ones -- that you may actually see expedia have to cut their guidance, and that, ultimately, would not be good news either. back to you. david: nicole, thanks. liz: who'd have thought that corn and soybeans would react so positively to a meeting in washington d.c. guess what? they did and just about every oth

written phonetically but we say deutsche. congratulations to that family. >>> all right.l & grace" the emmy winning actor sean hayes is here. >> oh, yes! he's here. >> i love all references. keep them up. >> we got a kazoo for you. >> bye! ♪ >>> oh. for eight seasons sean hayes kept studio audiences in stitches as the outrageously flamboyant jack mcfarland. i loved "will & grace." >> the man has moved on, do it. they don't want to be reminded. he's now emmy award winning -- >> the few viewers you have left -- >> it's called "sean saves the world." a single gay dad trying to deal with an over bearing mother. >> is it still monday, because i've been out here since monday! [ laughter ] >> please, come in. [ laughter ] >> your voice got here ten minutes ago and it's been looking for you. [ laughter ] >> how's my baby? >> i don't know, mom, honestly going from a fun weekend dad to a full-time responsible dad -- >> you think i'm talking about you? that's funny. i'm talking about ellie. poor kid. 14 years and her mother abandons her. now she has no one. no one. >> and, go. >> li

deal with them when they pop all we can do is inflate a bubble so isn't the policy just a way for deutsche bank to go boss let the economy crash again let there be a civil war somewhere let's start a few more wars and then figure out what to do later is that the policy the policy is we have no policy is not correct we don't have a strategy but we have tactics and the tech ticky is in terms of banks banks and sovereigns in the longer different city too big to fail banks are basically exactly the same as the sovereign so you're talking when you talk about j.p. morgan to do it your bank something very akin to the sovereign so as long as we can keep this game going at least as a tactical level that's what they're going to do let's talk about codes from a warren buffett who recently said that the us federal reserve is the greatest head fund in the world now warren buffett meant that as a compliment your thoughts oh well i think they are rich fund but then if you actually look at the consequences of that it's very interesting because if it is a hedge fund and eat essentially holds a lot of u.s.

with us on set we have the chairman of deutsche incorporated, donny deutsche and mike barnacle is herewe have msnbc contributor robert gibbs here with willie, joe and me. good morning. >> good morning. the cardinals make it through. >>leal adam wainwright is huge. >> talk about pirates. tough. >> great story. >> we're albumed about pirates. but the cardinals, what an organization. >> where do you think gibbs got the table cloth? >> i don't know. i was wondering that myself. >> a little offseason but cute. >> man speaking of fastballs at your head. >> you know what? steps up first swing and pre-season, boom. >> let me tell you barnacle i'm taking fashion advice from a lot of people but one of them is not you. >> for the first time since 2008 the economy is not america's top concern. new gallup polling shows the government shutdown, the dysfunction in washington has become the number one concern of voters at 33% and while all sides are taking a hit in their approval hittings as a result, the damage to the republican brand is proving to be the worst. now only 28% of americans say they hav

donny deutsch is still with us.ble republican senator from oklahoma and ranking member of the homeland security and governmental affairs committee senator tom coburn on the set. good to have you here. >> where's the beard? you could have kept it on until the red sox won the series. >> like the clean shaven look. >> and in chicago, sit back and watch the show. former senior adviser for president obama and msnbc contributor david axelrod with a little lou reed in the background. passing of lou reed over the weekend. let's get to the big stories of the morning. the affordable care act's main website healthercare.gov underwent a bit of an overhaul over the weekend. the site highlights the four ways you can enroll including the use of the navigator to make it easier for consumers to purchase health coverage. the website couldn't make nointd without experiencing another major issue. hhs officials said the site was down sunday because of an outage to one of its data centers. former president bill clinton defended the progr

the analysts at deutsche bank raised major concerns about expedia.the stock trading at levels it was trading at that's why you see 7.5% correction. i wouldn't jump in here because it look likes major damage can be done to this story. >> coach, lower one and a third percent on a down grade. >> concerned about the traffic trends. who isn't concerned about traffic trends in retail? don't think you buy the stock on the next quarter. buy it for the restructuring, new management team. the new ceo ran the international baz and under his leadership they drew revenue 63%. they've got new products, reforemating stores. i any in the low 50s it's interesting with the free cash flow yield of 7%. >> talk chipotle. 443, down a touch, hit all-time high earlier today. >> this is one of the great miracles of the post-crash period. consumer has spoken. they love the company. they will not stop eating lunch there. chart reflects that. two things i want to mention, multiple on forward earnings has gotten ahead of what the forward growth expectations are for earnings. wha

deutsche telecom came out this morning and said they wanted to help establish a germany centered internet so that they could have -- make sure the germans were protected from this sort of spying but it was seen by a pr move by deutsche telecom. there's a lot of posturing going on and i think rubio is right the u.s. would have preferred this not come to light. but the u.s. said hey snowden has revelations about some of its allies, saying, look, we're all complicit. >> congressman meeks, is this much ado about nothing? is senator rubio right? >> i think what we've got to get to more of a system of checks and balances. when you talk about all the new technology that's coming out and then also all of the threats that are in the world, we've got to figure out how we get this thing right. we don't want to offend our allies. we want to make sure that we can get the information that's necessary to keep us safe. and so there's got to be these checks and balances and we've got to continue to look at what we're doing so we can make sure that we're doing the right thing to keep us safe but not violat

deutsche bank has been making contingency plans in case of the default, adding you don't want to go intoll of it. this would be a very quick spreading disease. >>> and the managing director of the monetary fund speaking on nbc's "meet the press" sunday. lagarde warned about the disastrous impact of a default on the world and the country. >> if there is a degree of destruction, that lack of certainty, the lack of trust in the u.s. signature, it would mean massive destruction the world over. and we would be at risk of tipping yet again into recession. >> lagarde also said that creative accounting would not be the solution. that the u.s. has an obligation to the rest of the world to preserve its safe haven status. >>> but perhaps the most critical word on keeping the government open came from china. the nation called for a de-americanized world, along with the u.s. american dollar and the currency issue. the spokesperson said the destinies of the people around the world should not be left to those in a hypocrital government. >>> and what they see in washington, at the government, we take a

deutsche bank has been making contingency plans in case of the default, adding you don't want to go intoll of it. this would be a very quick spreading disease. >>> and the managing director of the monetary fund speaking on nbc's "meet the press" sunday. lagarde warned about the disastrous impact of a default on the world and the country. >> if there is a degree of destruction, that lack of certainty, the lack of trust in the u.s. signature, it would mean massive destruction the world over. and we would be at risk of tipping yet again into recession. >> lagarde also said that creative accounting would not be the solution. that the u.s. has an obligation to the rest of the world to preserve its safe haven status. >>> but perhaps the most critical word on keeping the government open came from china. the nation called for a de-americanized world, along with the u.s. american dollar and the currency issue. the spokesperson said the destinies of the people around the world should not be left to those in a hypocrital government. >>> and what they see in washington, at the government, we take a

that is currently led by deutsche telekom, 37.5 million customers, followed by vodafone, with eddie 2.2 million -- with ready to .2 million -- 32.2 million. >> from the point of view of mobile phone users, the mobile customers would have contracts with the operators. it is a disadvantage because if anything, it damages competition. from the point of view of shareholders, for those buying shares in the companies involved, it is an advantage because the sheer size of what is being created can lead to an increase in margins. >> although companies are likely to increase their profits in the long term, the initial outlay will be large -- a little over 8.5 billion euros is the latest offer on the table from o2's owner. on top of that would come costs for increasing the data volumes the network can handle. >> and a moment, a new exhibition in berlin explores the controversial world of surveillance. >> first, a look at other stories making the news. >> police and myanmar say at least five people have been killed by buddhist mobs. the renewed religious violence broke out. fighting between buddhi

keep in mind mutual funds on average have been outperforming the s&p 500 in 2013, however deutsch bankin the last two weeks, this trend has reversed. according to lipper funds the last time we saw an outflow was in 2012 around the fiscal cliff negotiations. analysts say this clearly indicates that d.c. dysfunction does have an impact on mutual fund activity. a majority of mutual funds are owned by retail investors. ici reports that in 2012 roughly 44% of u.s. households owned mutual funds. analysts write this recent underperformance suggests mutual funds are highly exposed to the momentum players, many of which are in the biotech space. while momentum stocks have rebounded recently deutsch bank says the fact that mutual funds have outperformed so much since july suggests that a momentum unwind could have further room to run as mutual funds trim their outperformers. simon, back to you. >> thank you very much, seemap. in the meantime applying for college got a lot more stressful. that ahead on the show. plus, why would a ceo of one of the top fashion houses leave to take a lesser title a

let's welcome top-ranked oil and refining analyst paul sanky of deutsche bank. welcome. >> thank you. >> i hope you had the conversation leading up to you. where do you think oil is going from here? >> yeah, i think everyone is bearish right now. we've had some shutdowns for refineries, from the course over august/september, and overexaggerated the oversupply situation. we may rally a bit from here. >> josh brown? >> i'm curious. what do you think are the biggest drivers to the upside and the downside, so if there was a best case scenario for oil traders on the long side, what would they want to see happen here? >> i think the wti, we see too much supply over the next year. you have to think we're only importing 700,000 barrels of light sweet crude now. we're growing supply at over 1 million barrels per day. by the middle of next year, we'll be an outright supplier, and you know, many of the crudes, for example, in the permian, trading at big discounts, even wti, trading at a discount to brent. we have more refining utilization, and that's where we get our short

. >> add to that, we have donny deutsche, incorporated. donny deutsche. >> and in washington, white house correspondent for the associated press, julie pace and kelly o'donnell. >> so now we raise the bar. >> willie, in either circumstance, we would be talking about the historic effectiveness of the detroit tiger's pitching because their pitching has been extraordinary, verlander, again we seen this three games strikeout after strikeout, that man the best pitcher in baseball without a doubt, unbelievable. >> of course. >> one strike after another strikeout after another strikeout. yet the tigers couldn't hit and the red sox carrying about a .132 game average. >> i thought the red sox had one run on napoli's home run. that's all they needed. you can see it on verlander's face what do i have to do, exactly? i gave up one bad pitch and i lose. >> how would you like to be a team that basically gave up one hit in 15 innings and you split the series and then you have verlander go out and gave up one pitch and lost. >> i believe now this is the f

should be worried about it and wall street, goldman sachs, brian moynahan at bank of america and deutsche saying they're worried about it. this recovery we've had so far is not necessarily sustainable. it's not well-established. it's vulnerable and is open to being destroyed by the concerns over the shutdown and concerns over the debt ceiling as well. it seems mutual that wall street and the president understands the gravitas of the situation. tesla models, the electric car company, they've had a good run. a fire in one of their model s sedans. the fact is that the company is saying yes, there was a fire. but it was caused by the fire hitting a large object. the shares fell 6%. don't worry too much. you have had a rally of 440% this year if you've held them throughout the year. brian? >> microsoft, it's interesting. steve bomber will step down and bill gates maybe leaving the chairman role? >> bill gates is very tied up with the bill and melinda gates foundation at the moment. they're saying we need a new direction. balmer has gone to the consumer, the $7 billion deal with nokia last mont

with us on set, the chairman of deutsch incorporated, donny deutsch. love donny. >> unfortunately not furloughed. we tried. >> it is not a joke. vice president executive editor of msnbc.com richard wolf. >> good morning. >> good morning. in washington, former white house press secretary and msnbc contributor robert gibbs. very serious. and chief foreign affairs -- >> it just keeps going on. >> andrea mitchell. great to have her on. >> what an amazing show. that was crazy stuff. >> did you get any flak? >> i was getting phone calls last night late. i mean -- >> different from the phone calls you usually get late? >> these are different. unfortunately these were about politics. i'm not interested in that. >> get ready for another show. >> anyway, we asked -- and i want to -- i felt kind of bad. a liberal felt outnumbered, right, for the first time? >> uh-huh. >> i called karl. i said, i feel bad. you come on the show expecting there to be one conservative and 27 liberals. >> what did he say? >> can't come on the show tomorrow, i'm having breakfast with e

also with us this morning in new york we have the chairman of deutsch incorporated, donny deutsch. and former communications director for president george w. bush nicole wallace is in new york and msnbc political analyst and visiting professor at nyu, former democratic congressman, harold ford jr. and in washington "new york times" reporter jeremy peters. >> thank you all for coming in. now we'll go back to talking about baseball. we got some stuff to talk about. we got the president obviously his approval ratings are lower. we were here to see the president. >> on location. >> health care reform. only reason we're here. also kathleen sebelius gave testimony yesterday. it was interesting. >> it was. the problems with the health care roll out along with trouble surrounding the irs, syria and nsa have left president obama with an approval rating of an all time low. a new nbc news "wall street journal" poll finds 42% approve of the job he's doing as president. that's down ten points from when he started his second term. right now 51% disapprove. for the first time in the survey the pr

spying program deutsche telekom announced just recently that they would only use internal german servers for german to german e-mail communications to try and cut off any kind of outside access to information it was being to being bandied around with in germany to try and stop all trying to assure its customers that it was going to stop the n.s.a. from from getting a hold of their information now we've also seen political action taken the european parliament has suspended the swift agreement with the united states and that was an agreement that would share banking data it was supposed to try and tackle terrorism to try and stop transfers from one bank account to another that were being used to fund terrorism around the world now it emerges that the n.s.a. may have been using not to spy on european citizens personal data so that's been suspended there is fallout heading the united states is where you as these allegations mount up that they're watching just about everybody's every move. and here it out here we go to crystal hall still a government and business consultant in things that eve

fuji in a most spectacular way that we'll probably see a chain reaction of bank failures including deutsche bank that will be quite spectacular and some gold up to twenty thousand dollars of elves my theory was however that i don't see how his policy would have worked any better than what the crazy stuff coming out of the fed and the central bank here is because you know that we have a problem with money velocity as well it's not circulating down to the rest of the economy and he does address that here as well with the quantitative easing happening in the u.k. which is remarkable he says that british banking is dominated by a small number of big banks with just five banks controlling ninety percent of deposits in germany however he says seventy percent of deposits are controlled by two thousand banks so here five banks ninety percent of deposits germany where we have a real capitalist economy seventy percent of deposits controlled by two thousand banks they lend more to small and medium enterprises who provide seventy percent of the jobs in germany and here so their banking comp. titian in

global reserve currency where you have a list of what it is the head of the analytical department of deutsche bank in russia says global economies are hoping the u.s. will resolve its crisis for everyone's sake. we believe that at the very last moment probably but there will be a breakthrough an agreement will be reached i think there is too much at stake in terms of what the faults. or for there are delays in reaching the compromise would mean for the american economy so this is the case for the u.s. economy this is the case for the global economy as well as for russia as we've seen before with similar cases in two thousand and eleven. certainly the main transmission mechanism is through will prices so pressure on commodities pressure on oil prices would signify essentially pressure on russia's economy and financial markets and then the other channel of course is capital outflows those may intensify further delays in reaching the compromise in the us to a place is washington's position as the global economic and political elite are threatened this is certainly something that undermines thord

deutsche comes out and says after 83 million miles, this is the first, it was bound to happen. >> davidws the hedge fund world. arson? hedge fund arson? i mean, look, because did you watch -- i was transfixed by the film. >> it didn't sound like it. it sounded like a couple of guys, although it could have been well orchestrated. >> that's a tesla! >> that's a car fire. car fires do occur. >> that's good for 6% down on the stock, which i think goes to the lack of conviction, perhaps, that some of the holders have. >> it does hurt the momentum. >> also on a day where it was cut to a neutral. >> and deutsche is saying it's going to be under pressure. i like to watch "usa today" -- i read "usa today" online. it's like, ooh, click on that, ooh, car fire, tesla down 10%. why? because tesla's only up here because of the handling of the screen, of the way it works. so suddenly if there's a fire -- remember, this is like a cool cars pe. as long as the cool cars stay cool, the pe is high. >> remember nhtsa came out in august and gave it the highest safety rating. and they said "it's worth mention