deutsche bank?livia: coming out of europe, deutsche bank has spent more than $7.5 billion on litigation in the last three years. tom: yeah, but that's not the story. olivia: the latest fine was $2.5 billion. that came on thursday after the company was fined for eliminating bench marks. now this morning, deutsche bank has just announced a major turnaround. we have live pictures that we'll show you, plus an interview that we will bring you at about 7:10 a.m. this morning. tom, you remember back in 2012, in came the two new c.e.o.'s. they were going to rule together. since then, since that poison in 2012, deutsche bank has been the worst performing global investment. tom: it is by a mile. what i want to know is the sell side, even with these announcements today. olivia: shares are off the most since october. my big takeway, in 2012, jain and fischer said we're going hit 12% by 2015. right now, it's about -- it was about 3.1%. today they crapped that. they only have 10%. meanwhile, jamie dimon still loo

laila: a terrible start of the week for deutsche. >> so many top people at the deutsche bank in munich, they say it's a real pr disaster. it gives a really bad picture of germany's leading bank. he would have to resign immediately as co-chief of the deutsche bank. it would not have much of an effect on the bank but people say that he is old enough that he will retire anyways. one of the biggest losers in today's market, not least because of the strategy. that is the way to go forward for the deutsche bank. laila: that doesn't it for us for this moment. brian: don't forget to join us at the top of the hour for the next bulletin. we will be following what happening in baltimore as that city confronts a potentially tense night. thanks for joining us. host: hello and thanks for joining us on euromaxx today. let's get the show on the road with a look at 3 of our stories coming up how milan gears up for expo 2015. meet finland's contestants for eurovision. angola poster show -- a -- and, poster show. a frankfurt museum spotlights a 1950's art movement. milan has always been seen as a mini co

anchor: deutsche bank. a planned to unveil details of their cost-cutting strategy after a record libor fine. we will bring you breaking news from the bank's headquarters in frankfurt. anna: a report that a lender may spin off a bank. all the details from our hong kong newsroom. manus: and a chairman resigns, ending a 20-year career. we are live in berlin, for the latest. hello. welcome to countdown. i am mark barton. caroline: and i am caroline hyde. manus: and i am manus cranny. mark: pensioners and civil servants. manus: and it equity target of 10%. of course, it abandoned its original target of a return on equity a number of years ago, so return on equity their of 12%. that was with the corporate bank side of the business. this is the strategy for deutsche bank. focusing on investment. this after they delivered their first-quarter numbers, the second-best revenue on record driven by the investment bank it should be said. a post-tax return of 10%, with planned growth leverage reductions, so this is reduci

deutsche bank is expected to plead guilty. hsbc has been ordered to pay a $1.1 billion they'll charge after being charged with tax evasion at its private bank. hsbc said it was informed of an investigation regarding its private bank in 2006-2007. it said the decision is without legal basis, and the bail is unwarranted. u.s. president barack obama and cuban president castro are in panama today for a summit of the americas where they could meet for the first time since they announced plans of restoring diplomatic relations. it will be the first time cuba takes part in a summit of the americas. coming up, a deal insight. greece's finance minister tells bloomberg he wants an agreement in two weeks. ♪ guy: welcome back. you are watching "the pulse." deutsche bank is close to a $1.5 billion deal settling investigations into libor manipulation. according to people familiar with the matter, the possible deal with the include -- deal will include u.s. and u.k. authorities. hans nichols has the story from berlin. hans: $1.5 billion woul

erik: deutsche bank is paying the price.rdered deutsche bank to pay $2.5 billion and fire seven employees, the largest penalty yet in the investigation of interest rate rigging. edward evans is with us from london. the -- this case is different from cases that have been brought against ubs. what is at the top of the list for you? edward: the first is the size of the fine. this is larger than what ubs was fined. regulators take issue with the widespread nature of the manipulation that was going on at deutsche bank. secondly, the way that deutsche bank handled the investigation. they were being sharply criticized either british regulator -- by the british regulator and for on occasion misleading the regulator. that is rare criticism from the british financial regulator of a bank like deutsche bank. stephanie: do they name specifically officers, executives at deutsche bank, not just to potentially manipulative libor, but who may have been involved in the cover-up? >> there is no mention of a specified office. regulators today a

tilde amount deutsche bank has spent 7.1 billion euros.hat is how much their legal costs have been. a lot of money. there's still some other cases out there. jonathan: hans, a lot of money has been put aside. on the libor side of things, this is the u.s. and u.k. authorities. hans: we still have that currency probe. we did have a few banks that settled. that came to a total of $3.4 billion. we still don't know if deutsche bank are going to be ensnared in the iran sanctions violation. when we had bnp paribas, they paid iran, cuba, and sedan. they had a $9 billion sediment. this is getting there on the libor front, but we have to class through the foreign currency exchange. we don't have estimates on how much that will cost. jonathan: hans nichols, thank you very much. let's keep it on the banking sector. you hear about currency vines libor, tax evasion as well. hsbc is thought to pay one billion euros after being charged in a french probe about tax evasion. stephen morris joins us now for a little bit more. you've got libor, the currency th

francine: how significant is this for deutsche bank?hing that was haunting the ceo. deutsche bank is one of the biggest banks in the world. can they turn a corner after this? hans: it provides certainty. that is what the notes are saying. the stock is up this morning. the stock was up on the news. you now have a dollar figure. you have a dollar figure for germany's biggest bank on what their exposure is. at the end of 2014, the provision for legal costs was 3.6 billion euros, north of $4 billion. over the last three years deutsche bank has had close to 7 billion euros in litigation and legal costs. that is a remarkable amount. now there is certainty and we will see if they can return to focusing on growth. brendan: you could be excused for getting one of the names of the regulators wrong. it is a long list. if i remember correctly deutsche bank shed its consumer banking assets as well. it is trying to become a different kind of bank. what will it look like in five years? hans: the big bet that anshu jain has made is that they think inve

deutsche bank has set aside 700.25 million to settle an investigation into euro and liber manipulation. they set aside 3.6 billion in legal provision, and in total it is about 7.1 billion in legal cost litigation they had to pay over the last three years. it does include the fca. we will see how much higher it goes. it is going to be north of 1.5 billion. caroline: that is on the liber manipulation side of things. there are other things that could be facing deutsche land. >> we still have fx. remember last year when 4.3 billion settlement on potential currency manipulation was announced, that didn't include deutsche bank, and you could have potentially something on the iran side of things. they paid 9 billion on iran and cuba. we potentially have two other areas where deutsche bank is exposed to future risks, future settlements. let's see how the market response. it looks like we have a rough number on my bar, and we will see how the market reacts. >> another bank closer to home is paying up to one point $1 billion i

we begin with deutsche bank dramatic rebound. the german lender plans to reduce cost and cut back its ownership of its consumer unit. guy: for more, let's go to hans nichols from frankfurt. where is the bank trimming cutting, where is it looking to grow? hans: they are going to be cutting in retail units. it is not just postbank. deutsche bank itself, their retail outlets will drop by about 200. there are currently about 730. they are trimming back the investment bank, but they are also redeploying some 50 billion to 70 billion in assets into relationships and client-based services. they are looking to shed about 200 billion in assets. that is going to get their capital requirements to about 5%. before, their goal was to have a return on equity of 12%. in 2015 they came in just north of 3%. a lot of that is litigation costs. they were hit by 1.5 billion. we are heading into a press conference shortly. we want to find out where the job cuts are, how many, and what is the overall strategy in terms of the investment bank. francine:

deutsche bank has unveiled lands for a strategic overhaul.anning to reduce annual costs by an additional $3.8 billion. they will shrink their securities business and reduce its footprint overseas. yesterday deutsche bank said legal costs cut first-quarter earnings in half. a rejection of a takeover bid from the israeli drugmaker teva for mylan. they say that they will not take anything seriously unless it is $100 a share. in the meantime, there is a takeover bid from the fellow drugmaker terror ago, which has also been rejected. the founder of the world's largest hedge fund firm says there's a lot to like about the chinese economy. guest: they have a lot of potential. as it flows to that other part of the government, in the end of it, i think they have a lot of potential. i remain bullish long-term. erik: ray dally oh founded the -- ray dalio sounded his firm in a two-bedroom apartment. and it will not -- your antitheft devices will not work if you leave the keys inside. people do not like to tell the police or insurance company and how carel

reporter: the shine may have worn off deutsche bank.he decision after traders manipulated a key interest rate. major but -- major banks joint -- major banks joined the libor rate. even tiny fluctuations in the benchmark could lead to big profits. that is what traitors did, they rigged the libor to earn money for their banks and skyhigh bonuses for themselves. but now they are paying the price. deutsche bank faces a 2.3 billion euro fine from u.s. and tax authorities. it is the highest yet in the libor scandal. switzerland's ubs has already paid out the equivalent of 1.2 billion euros and britain's barclays bank was given a 325 million euro penalty. german investigators german regulators are also investigating -- german regulators are also investigating. the scandal has cost customers billions. brian: we have more news about other corruption scandals. investors are getting a very cold and hard look at the financial impact of a massive corruption scandal at the brazilian energy giant petrobras. matt: this state run company now reports it

deutsche. excellent statement. and we're so pleased to welcome ambassador gerald firestein the principle deputy assistant secretary of the bureau of near eastern affairs. previously, he served as our ambassador to yes, ma'amen from 2010 to 2013. so he knows this area very well. he has served in several different postings throughout the middle east including as deputy chief of missions in islamabad and deputy council general in jerusalem. thank you for your service, mr. ambassador. we look forward to your testimony. and may i point out your lovely fiancee sitting behind you. welcome. does she know the hours that you put in every day in your job? she might want to reconsider. mr. ambassador? you're on. >> thank you so much madam chairman. madam chairman ranking member deutsche, members of the committee, i greatly appreciate this opportunity to come before you today and review recent developments in yemen and the efforts that the united states is undertaking to support the government of yemen under president hadi and

deutsche bank officials announced a long-range cost-cutting plan today. the company wants to save nearly $4 billion per year. the business will be scaled back. one analyst cut 3000 jobs. officials scrambling to come up with more money. government workers must be paid this week. still no end in site in the country's debt crisis. more than $1.5 billion. officials hope to cover that with other local government. and he talks on friday basically yields at nothing. officials say few survivors of the hurricane earthquake will be found. two days after the disaster, the death toll approaching 3700. those who are not among the 30,000 injured, staying alive millions are homeless. severe sort -- shortages of food and shelter and medicine reported in the capital. things are even worse in the countryside. >> he came from a village where their 1000 and 100 households. when the earth quake struck, it was like a volcanic explosion with rocks going everywhere. 90% of the houses were completely decimated. betty: nearly 180 mountain climbers are now safe. some 700 others are

this is pretty significant for deutsche bank. they have not pleaded guilty on previous indiscretions or legal issues before. this is a large number, about the same of what ubs paid for their settlement several years ago. alix: it wipes out the profits deutsche bank made last year. keri: it will definitely hurt. alix: 10, from your expertise, do we end up seeing a guilty verdict for deutsche bank, will there be constituencies to soften the blow like we have seen with other eggs? -- other banks? tim: what i'm going to be looking for is the number but in addition, a lot of the brookfield characteristics going to the settlement. deutsche bank will take a charge somewhere and we think that is likely. that is not as unusual as it used to be. the question now is less of do they take the charge but which entity takes the charge? the report and the new york times indicated it looks like they'll be able to avoid taking a banking arm but they will still take a pretty substantial u.k. subsidiary, different from what we have seen the former c

brian: deutsche bank. germany's largest lender has revealed details of its highly anticipated overhaul. laila: the embattled financial institution joins a growing list of global banks that are downsizing to survive. reporter: prices, what crisis? -- crisis? what crisis? even though georgia has been under -- though deutsche has been under pressure. >> up, we have four divisions that are working well and a solid business model. we have managed to keep our capital base at over 11% so we are looking strong as we embark on agenda 2020. reporter: agenda 2020 is what the bank is calling its restructuring plan. it involves selling its majority stake in a german high street bank. deutsche will also close to hundred seven branches and shrink investment banking operations -- will also close 207 branches and shrink investment banking operations. the ceos say they remain committed to the universal banking model. the restructuring won't come cheap. 3.7 billion euros. laila: deutsche bank's restructuring plans were not w

authorities identify the trader libel at deutsche bank.e take his role in what looks like a fine for germany's largest lender. mark: hello, welcome. i'm mark barton. also coming up today, emily chang sits down with facebook's chief officer and virgins richard branson for an exclusive conversation on the balancing of work and family. we will bring you that later in the show. manus: the nasdaq futures are trading higher this morning, as we get started here in europe. the end of asia signaling a potential for record high. that comes on the back of the nasdaq composite topping its.com era peak. why investors are so bullish the tech woman is in the house with these stories. caroline: think it so much. look this record high in the nasdaq. whenever this dotcom boom? i'm sure you do. we search past that 16-year high. it looks like we could rise, once again. all down to three key points. let's get to the biggest in terms of sales. and that is not other than amazon. it is all about retail, e-commerce for amazon. this is a company that brings in $22.

last week, three options and place for deutsche bank. reduce overall retail footprint and the size of investment banking. that is in play as well. on the commodities side, you are seeing oil in the commodities and china reduce reserve rate requirements added liquidity and commodities got a small -- got smaller the copper side. 0.3%. and bhp this. do i have my yuan> a look. what comes next for china? will they go for more stimulus? will they go for another? that is the dollar-you one -- yuan. what is next? johnny. jonathan: the ftse 100 is up 0.6%. gains across much of your. manus said we have to go straight to beijing. they stepped up stimulus for reserve bank requirements. they want a reduction in the reserve rate to allow banks to use the landing. let's get to bloomberg intelligence chief economist, tom. let's talk about the motivation. i am looking at the house prices over the weekend. anything to do with what is going on here? reporter: i think house prices are part of it. there really 2 big factors the central-bank is thinking about

deutsche. excellent statement. and we're so pleased to welcome ambassador gerald firestein, the principle deputy assistant secretary of the bureau of near eastern affairs. previously, he served as our ambassador to yemen from 2010 to 2013. so he knows this area very well. he has served in several different postings throughout the middle east including as deputy chief of missions in islamabad and deputy council general in jerusalem. thank you for your service, mr. ambassador. we look forward to your testimony. and may i point out your lovely fiancee sitting behind you. welcome. does she know the hours that you put in every day in your job? she might want to reconsider. mr. ambassador? you're on. >> thank you so much, madam chairman. madam chairman, ranking member deutsche, members of the committee, i greatly appreciate this opportunity to come before you today and review recent developments in yemen and the efforts that the united states is undertaking to support the government of yemen under president hadi and the

francine: still ahead, deutsche bank is said to pay 2 billion euros. we are live in frankfurt for the latest on the possible libor settlement. guy: we will look at google's new mobile phone service. francine: and later, what is spoofing? what does it have to do with the 2010 flash crash? we will break it down right here on "the pulse." ♪ francine: welcome back to "the pulse." we are live on bloomberg tv and radio. guy: deutsche bank may pay a 2 billion euros settlement in a libor probe with the u.k. and the u.s. let's get over to shane strowmatt in frankfurt. how is the 1.5 billion euros cost comparing with the total litigation cost to this company? shane: the cost they announced last night, about 1.5 billion euros. they only said at the end of last year the provisions for total legal costs is about 3.2 billion euros. neither of the figures have been broken down. several different investigations are open at the same time. investigations into fx dealing asset-backed securitiesk and a legit u.s. sanctions. we've heard a libor settlement could come early.

and what is next for deutsche bank?rad hintz at the challenges that deutsche bank faces. we will speak to mr. hintz about the uproar over the committee in this hour. olivia: president obama and japan's prime minister are meeting today to talk trade, but obama played tour guide before getting down to business will stop you took able to the lincoln memorial where they looked at the gettysburg address etched on the -- down to business. president obama took abe to the lincoln memorial, where they looked at the gettysburg address etched on the marble. peter cook, this is the first time a japanese leader will address a joint section the session of congress will stop why does this matter so much? peter: they are rolling out the red carpet for shinzo abe. this is to highlight the economic ties and to bolster defense ties between these two countries as a counterweight to china. both sides are saying this is not intended to send a direct message to china. simply to enhance the relationship that has been built up between these two

so many other things are also open at deutsche bank.have investigations into forex dealings, asset-backed securities alleged u.s. sanctions violations and so forth area it is still open. it is a decent legal cost in the first quarter. jonathan: busy because they are in the middle of a strategy review. what does the timing of the settlement mean if we get it eminently given the bank is in the middle of this review? shane: for management, they kind of want to get this out of the way. investors and analysts are saying the same thing. we've heard that tomorrow the supervisory board can meet and look at the options presented by management. next week, they are presenting first-quarter earnings. if they get a libor settlement today or as soon as possible they could get this off the table, go to the board, present their new strategy boost profitability at the bank, and put down some solid numbers next week and the situation could look very different. the timing is important here. jonathan: shane, thanks for joining us this morning. if we get th

deutsche bank is set to face a 2 billion euro penalty in the u.s. we are life with the details. caroline: weak banks get a lifeline after bleeding deposits. the ecb doubles its emergency funds. i deal with european creditors remains elusive ahead of meetings. >> he passed by the firm and he was therefore 5, 6 years -- he was a legend. during the financial crisis this guy had faults. he used to get into big positions, saw the risks and reward and took on the trade. mark: a former colleague of the allegedly lash crashed rater, calling him a legend. we are live as he fights extradition to the united states. welcome to "countdown." caroline: coming up, youtube's 10th anniversary. we will take a look at how the video giant went from business to a global phenomenon. but there is one social network that will surpass youtube and videos in the u.s., and that is facebook. the breakdown facebook, as they talk all things tech. mark: more evidence this morning that the slowdown in china falls to its lowest level. hsbc's flash pmi came at 49.2 making a mark for contraction. for more detail, l

let's get the latest on deutsche bank.man lender was fined two point $5 billion for libor manipulation. what stole the headlines were the messages between traders. employees openly calling the system corrupt and "begging for lower rates." our bloomberg european finance editor has more on that story. eliza, what do we know about the traders? all i've heard is trader three. who is trader three? >> trader three was a propriety trader. what we are told is that he specialized in short-term derivatives. according to the doj, he worked with his own colleagues at the firm who were submitting rate submissions, and with counterparts at other firms to create rates that would have been favorable to his own accounts. this was part of a pattern of frequent trading instances which were to the benefit of the firm. jonathan: yesterday's element what was fascinating was the press release. you saw the quotes from the traders. the new york department of financial services embarrassed this bank. what is next for deutsche bank? elisa: it was cl

deutsche bank shares are lower after announced cost cuts.he largest lender will close 200 branches and will get a return on equity. they will cut back ownership in the consumer unit and shrink security business. germany has agreed to buy in a deal worth $400 billion. the shares closed up on friday. a big focus on folks liking with a winner emerging over the fight for the steering wheel. ferdinand resigned. let's go out to the berlin bureau chief. this takes some of the uncertainty, in the short-term, out of the equation. >> you are absolutely right. the shares are up 5% this morning and it is recovering some of what they have lost. they have dropped while that happened. they are saying it is positive because they are unlikely to pursue any more deals. they went on a spending spree and created a 12-brand stable that includes porsche and lamborghini. and truck makers. analysts are saying, if they are not spending on acquisitions, there is more money to get back to investors. finally, another thing the analysts are saying is that the resignatio

royal deutsch. who got it right?on't miss my take. >>> then the world's top brands need a lot of weapons to handle the world of social media. i'll introduce you to a new leader. >>> let's give your portfolio a checkup. i think it's time to play diversify. stick with cramer. >>> talk about the right way. and the wrong way. to do a deal. today we got the goofts and a gallant of the world. gallant proposes a stock in cash takeover bid for priogo. they've been held back by a couple of one time only issues. my only potential was nearly 15%. goofus shell on the other hand surveys the world and decided to issue stock in cash for the poorly performing bj. a company in the worst most glutted part of the worst and glutted oil complex natural gas. and sure enough world deutsch gets hammered with all the value accruing to the target. why not? world dutch paid a premium. they best hope is someone comes along paying more. relieving shareholders of this ridiculously overpriced acquisition. i love this deal as much as i love perrigo

it comes to deutsche on top of $7.5 in legal costs. numbers are large. government does this week focus on resenting and delivering and the siding on a new strategic review. a radical shift in terms of its footprint and considering it might even decide to exit consumer banking entirely. betty: this will have an impact. another victory for benjamin here who has been after these banks for market manipulation. now a 2.5 billion dollar fine. how will this affect operations? i'm talking about some of the foreign banks operating in the u.s. michael: we have seen as for the last few years. regulators especially international banks, where perhaps it is a little bit politically easier. betty: has it had a chilling effect at all on them here? michael: it is unclear how much of that is from the pressure and how much is just from the cost of richard returns are not great. we saw the first quarter pick up a little bit. but there are a lot of things in play here, whether the regulatory environment or the business environment. betty: lisa, what about is this it for them

deutsche. excellent statement. and we're so pleased to welcome ambassador gerald firestein the principle deputy assistant secretary of the bureau of near eastern affairs. previously, he served as our ambassador to yes, ma'amen from 2010 to 2013. so he knows this area very well. he has served in several different postings throughout the middle east including as deputy chief of missions in islamabad and deputy council general in jerusalem. thank you for your service, mr. ambassador. we look forward to your testimony. and may i point out your lovely fiancee sitting behind you. welcome. does she know the hours that you put in every day in your job? she might want to reconsider. mr. ambassador? you're on. >> thank you so much madam chairman. madam chairman ranking member deutsche, members of the committee, i greatly appreciate this opportunity to come before you today and review recent developments in yemen and the efforts that the united states is undertaking to support the government of yemen under president hadi and

what options is deutsche bank considering, then, as part of this strategy review? shane: good morning. we have heard that all three options are still on the table but management favors two. one would be to sell one of its bigger german banking units and the other went to take postbank and bundle it together with others and sell it off in an ipo. those are the two options being focused on. the third option, which has less support, is to take deeper cuts to consumer banking and its security division. it looks like one of the first two options will probably be executed. mark: what are the arguments for and against it from consumer banking? shane: consumer banking last year compared to all other divisions at deutsche bank actually had the worst return on equity and the highest cost compared to revenue. some analysts are looking at the consumer banking and saying -- if you want to boost profit, get rid of consumer banking. others are saying, you shouldn't overdo this because the securities division, which does generate a lot of money, is very reliant on deposits on the

deutsch? >> one more question also. with the coalition focused as it is on the houthis, and since we lost at least for now our counter terrorism partner in the yemeni government and military, is there -- what pressure is there, to the extent there is any, on al qaeda and isis as well? >> we of course to the extent we can, it is more limited now, to the extent that we can we will continue to engage aqap unilaterally in order to try to disrupt or defeat any threats against us. when secretary was in the region, it was an issue we raised with the saudis in particular and urged them as part of their effort to go after aqap targets as well as other targets so we can continue the pressure. >> can you tell us how that was received? >> they agree because aqap is a direct threat to their security too. >> have we seen that happen? >> i can't say for certain, a, whether we have given any targets to go after, whether they have been effective in servicing those. >> thank you. >> thank you so much mr. deutsch. dr. yoho. >> thank you m

the real interesting one is deutsche bank down again today in the wake of the restructuring.g that co-ceos were looking at turning deutsche bank into the goldman sachs of europe. investment banking and kmernl lending and ditching the retail operations, but they found on their models if they did that they kept failing the ecb stress test. it wasn't stable enough. banks down, europe down, guys, back to you. >> thank you very much simon hobbs. get you an update on these reports regarding iran and a u.s. cargo ship. dom chu has more back at hq. >> we're going to try to clarify the details here. when we do know now is there has been a cargo ship seized in iranian territorial waters, but it is not a u.s. ship. what we know per a department of defense spokesperson is that iran has seized a ship, but it's the "mersk tigress" that's a danish shipping company and the "tigress" was flying under the marshall islands flag. per the same defense department spokesperson cited by "reuters," there are no u.s. citizens aboard this ship. however, the pentagon is also saying there are u.s. milita

deutsche. mr. wilson of south carolina. >> again, thank you mr. secretary. and i appreciate you and i have something in common in that i have two sons who served in iraq. one is a physician and another is field artillery and i know that you've had a son serve there. and then with your background, what a distinguished background. as i stated from the beginning, i'm just so hopeful for your success. i believe sadly, that as a safe havens are created throughout that region and into central asia and north africa that the american people are at risk. and so we want you to succeed. and with that in mind, and you referenced it a minute ago, and that is that what impact do you believe that administration's nuclear negotiations with the regime in tehran have had with the support of the iranian government to be provided to the hoothies? >> thank you very much, congressman wilson for your kind words. in terms of the relationship or any correlation between the nuclear talks and the situation in yemen or more broadly in the region i think that our perspective is that --

deutsche bank is set to pay $1.5 billion in fines. the bank is suspected of interest rate manipulation. regulators say traders raised the rate known as the libor. apple and samsung picked the same day to unveil new devices. the lines were not so long in london or beijing. it is the first new apple product in five years. shoppers in 20 countries are checking out the new samsung phones today. samsung hopes it will recapture the market share. a young player, 21-year-old challenging to make his mark at the masters. the leader is 21-year-old jordan spieth. he shot -8 in the opening round, one shot off the record. tiger woods is also there playing his first tournament in two months. he is an 40 first place -- 41st place. a $26 billion deal. joining me to discuss. we know that jeff him out -- jeffrey himimmelt has been wanting to do this for a while. >> he does not wanted to be a bank. this is just one of many steps he is trying to take to transform gen get the stock price back up. he found a buyer. he engaged blackstone on an exclusive basi

we have seen that from deutsche bank.nvestors are looking at -- because management is absolutely crucial at this point. the management in santander, is very positive. [indiscernible] so, overall, management, yes, it can take credit in this case. guy: we call them all banks, but how different is deutsche bank to santander. david: i think it is very different that on one side deutsche bank tries to go away from retail banking. they try asort of to concentrate in other areas like investment banking. much depends on what the regular pressure in the future would be in terms of investment banking. they stand to increase regulatory -- it becomes very difficult to work and make money in this environment. we have seen news to move the hq to hong kong. [indiscernible] in a bank where there is maybe a bit more, of -- a bit less cloud. i think the move from retail out of retail is the main difference between those two banks. francine: we are getting figures from standard chartered. it's up slightly. this is another bank that we under

deutsche bank is down 3.2%. it plans to significantly pare back its business. the press conference kicks off in under half an hour and this report was filed detail. >> it was one of most important days in recent history as they will update investors and analysts alike about their new strategy. they are planning on shedding a huge part of their retail bank which they started to buy in 2008 and also they are planning on shedding areas in investment banking which are not very profitable. i think the mantra which they had all the time to deliver all services to everybody everywhere in the world is clearly over. as they concentrate on profitable areas in the back cities as they were saying in a press release, which was released earlier today. also, their new targets are quite challenging. liquidity ratio of 5% and also their aspiration to actually have a payout ratio of more than 50% might make the shares more attractive for investors, but of course the devil is always in the details and the details we'll get from 10:30 during the press coverage which is about to st

francine: what is next for deutsche bank? elisa: this was a considerable legal challenge that it faced. it was the biggest penalty the firm has ever paid. but there's not much time for them to rest. we expect a big decision as soon as today on the bank's biggest overhaul in the current management. the bank is considering a radical shift to its model, which may see it exit consumer banking entirely. [indiscernible] francine: thank you so much. elisa martinuzzi from milan, the team leader for all coverage to do with european finance. guy: what else is on our radar? comcast is said to drop its proposed deal with time warner. the proposed merger which took over a year to get approval faces opposition from the u.s. justice department. comcast could announce the news as early as today. francine: not a grexit but a tapering is the greatest risk faced by the economy this year. that is according to martin, who spoke to me earlier. >> the thing that worries me most is what happens when tapering ends. i think growth is going to be lower

deutsche bank allowed for the first quarter. a settlement with regulators.enders still expect the quarter profit with revenue close to a record. it says it will provide more details when earnings, scheduled for april 29. greece has one access to more emergency funding for its base. people familiar with the decision say the european central banks governing council raised the cap on emergency liquidity assistance by about $1.6 billion to $76 billion. finance ministers will meet april 24 in the latest attempt to persuade greece to commit to economic reform so that aid payments can be released before the country runs out of money. european antitrust regulators have now have guessed problem in their sites. the big russian energy company may have imposed unfair prices by preventing gas from flowing from certain european countries to others. the trust regulators ready to talk. >> at this stage, all roads are open. first, and that is very important we would like to get in touch and talk with the people responsible. mark: it expect there will be a solution with the h

>> deutsche bank looks like it's near a settlement over its libor allegations.at according to the sources citing familiar. it says authorities around the world are pushing deutsche bank to pay a record penalty of what could be around $1.5 billion. that would eclipse all prior settlements with banks accused of interest rate manipulation for this london rate or a global benchmark for interest rates. it's in talks to resolve this case as possibly as this month. that according to people briefed on the matter. and this would span regulators from u.s. federal regulators like the cftc also with new york state's regulators and regulators in london as well. the justice department also conditioned this deal to be finding at least one of the units at deutsche bank to plead guilty to fraud in what would be the most significant bank needed to have a criminal plea. according to "the new york times" deal book citing sources, deutsche bank may be close to a $1.5 billion settlement that could include a guilty plea in this case. it's a story we'll stay on top of in case of other

that is something deutsche and a number of the banks have referred to.for litigation and investigation. this is the big number. this is 2.05 billion pounds. so p.p.i. what people are going write about. the pretax profit. the buffers of capital are rising. p.p.i. payment protection, 150 billion pounds. the u.k. press will be all over that like a rash. in terms of the rest of these headlines, core income up by some 2%. just need to wait and see how the investment bank actually does. the investment bank or the securities unit constitutes 25% of the profit at barclays rather than the 75% that it was back in 2010. provisions for investigations and litigation will be 2.17 billion pounds. what you have to consider is in the united kingdom. it would be somewhere up around 20 billion pounds. we're talking about libor, foreign exchange. assets, p.p.i. all of those investigations that various banks have participanted in is probably one of the new costs of doing banking along with the u.k. levy. all of the political parties have subscribed to that. investment bank.

guy: deutsche bank madey ditch its retail operations.rancine: also, we will be speaking to the cypriot finance minister about the situation in greece. ♪ francine: deutsche bank may be planning to ditch its retail operations. this is said to be part of a strategy revamp that may be announced as soon as this month. let's bring in our european finance team leader. thank you for joining us. what options is the bank considering? >> we know the bank started with five models. it has narrowed that down to two those being a partial exit of its consumer business and a slightly more radical shift which would see all of its consumer businesses combined and an exit from those. as part of both scenarios, there would still be a scale back in the investment bank, but that will depend on the size of the retail divestment, which is being pondered now. third scenario which was presented a few weeks ago, that we should see the perimeter of the bank unchanged while the bank scale back the cost of business. at the moment, that is the least favored scenario. g

deutsch? >> one more question also. with the coalition focused as it is on the houthis, and since we lost at least for now our counter terrorism partner in the yemeni government and military, is there -- what pressure is there, to the extent there is any, on al qaeda and isis as well? >> we of course to the extent we can, it is more limited now, to the extent that we can, we will continue to engage aqap unilaterally in order to try to disrupt or defeat any threats against us. when secretary was in the region, it was an issue we raised with the saudis in particular and urged them as part of their effort to go after aqap targets as well as other targets so we can continue the pressure. >> can you tell us how that was received? >> they agree because aqap is a direct threat to their security, too. >> have we seen that happen? >> i can't say for certain, a, whether we have given any targets to go after, whether they have been effective in servicing those. >> thank you. >> thank you so much, mr. deutsch. dr. yoho. >> thank yo

it was a communist party paper called document 9, report by deutsche weller. paper warned senior members against allowing certain western values to creep into china. gau. es u spent the last year in gaol. her confession was broadcast, which she said was extracted under duress. from the international organization of journalist, they said: a chinese foreign military spokesman said the case was handled in accordance with the law and urged others no to interfere with china's judicial sovereignty >>> britain goes to the polls to elect a new government. during the last majoral election in the u.k., a scottish referendum, the media coverage was an issue, not just the newspapers which were under the microcope scandal after the phone-hacking scandal and the relationship between politics and the thresh. the bbc was accused of an anti-independence pro-west minister virus. -- bias. in the u.k., you go to o.f.c. om. it enforces the news on every outlet in the u.k. except for the bbc. there's a separate body called the bbc trust. ofcom can't take action or press tv owned by

deutsche bank faces a $1.5 billion fine for alleged libor rigging. indices are all in the green.rgely a sign of fears over greece are easing after the country repaid it 450 million euro loan through the international monetary fund. markets are also moving up things to signs of a weak euro after the european central bank is continuing to pump around $60 billion a month into the economy, molly so markets are responding to the economic data out of the eurozone. molly: thank you for that business update, there. it is time now for our press review. i'm joined in the studio by florence milliman of -- by florence milliman of. we start with a story out of france anti-terror prosecutors are -- by florence villa eminot. we start with a story out of france, anti-terror prosecutors. florence: hackers took over its social media accounts and blacked out at 11 channels. the friends russ french press is still reeling from the "charlie hebdo" attacks in february for said he see the front page of "aujou rd'hui france," talking about cyber jihadist himm, the invisible war. molly: it is a symbolic t

we have seen deutsche bank trailing down about 5% after announcing an overhaul of its banking operation on the back of very heavy losses in shanghai -- very heavy losses. in shanghai, we saw a seven year high. the meeting of the u.s. federal reserve. a downgrade for tokyo. the ratings agency has cut japan's credit rating from one much -- for one notch, from a-plus to a. it is uncertain whether tokyo will be able to address its debt burden by raising enough revenue. scotland has $5.5 billion worth of loans in america. rbs is trying to reshape itself as a corporate and retail bank focused on its domestic market. apple will reveal its first-quarter results later this monday after record-breaking earnings in january. it has warned that the surge in the value of the u.s. dollar could cut as much as $2 billion from its quarterly revenue. analysts expect initial sales of the apple watch to be disappointing. >> new marketing retailer -- new marketing strategy for retailer abercrombie & fitch? >> abercrombie has officially changed its dress code and look policy for its employees. it says it will

deutsche bank cutting rating on these stocks to a hold from a prior buy. and they point out to weaker things like weaker than expected international sales. also other factors, as well. so those airline stocks lower on the day, thanks to that, and, of course, rising fuel prices as well. over to you. >> thanks. okay, so pete. >> yeah. >> you've got this price line upgrade yesterday by scott devit, in part expecting tail winds from an improving economy. you have the downgrade today on these three names in part because deutsche bank sees international sales a source of earnings disappointment. >> yeah. and they're concerned about the strong dollar. it makes sense why the downgrade, quite honestly. i understand when you look through the list of reasons, it makes a lot of sense. but he also mentions, hey, these guys are set up for the record profits. potentially. and record cash flow. so i think that combination on these pullbacks, i absolutely think it's a buying opportunity. he was right, he's adjusted some numbers. i think on this pullback, though, we know th

deutsche bank looking at a libor settlement. gm with a nuanced quarter.th america. mr. zuckerberg, he is investing. is it an investment or an expense? we will talk about that. this is important. we look at america's projection abroad. it starts with legacy. thomas jefferson, james madison. secretaries of state, president obama they have defined a new american order. is this secretary of state now like it was 10 years or 20 years ago. >> i think president obama has made a big priority to increase his profile. he picked two people known for having run for president. secretary jake cake -- secretary clinton's was treated like a rock star. that was a big part of it. tom: what of other secretaries of state will do with the future? >> one thing clinton prioritized was commercial diplomacy, going out there. that has stayed on during secretary kerry. the question is trying to promote u.s. companies overseas. olivia: what is her legacy with the voters? >> business will not forget it. whether or not she will be elected, she is the democratic nominee. the biggest ne

that's where you're seeing the likes of deutsche bank deleveraging. another capital increase. the fourth one over the past five years so there's still a lot of pressure on banks to improve their capital ratios. >> on that point, phillipe, because it feels like over the last five years that banks have been trying to sure up their balance sheets and make sure they have enough cash. when do we reach that level when it happens? when can we stop worrying about that? >> it's been a moving target for sure. look at the u.k. and switzerland now well ahead of the game compared to the euro zone. you've seen as well in the u.s. that some of the largest banks despite being very healthy like jp morgan was forced by the fed basically to increase it's capital target from 10% to 12%. so i think a lot of regulators are now more powerful. they're looking to self-ensure and the best way is to ask for more capital and see the shares have been going up and they feel this is a bad time to apply extra pressure. so there's no magic number where this is going to end i'm afraid. it's going to be with us

check out tesla searching after deutsche bank says the products could boost earnings more than expected. tesla up more than 7%, nearly 8% this morning, carl, oen that news. >>> great show for you this hour, coming up, evernote entered the billion dollar club back in 2012. raising over $300 million from 15 different investors. ceo will talk about the future of the company including the new app part apple watch. >>> speaking of billion dollar valuations, we'll talk with a top vc like airbnb, spotify, and, he was so prolific at instagram, they named a filter rise after him. cole rise will join us live to talk about his new app and how it feels to be part of apple's shot on the iphone 6 ad campaign. "squawk alley" will be right back. financial noise financial noise financial noise financial noise excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. ♪ >>> welcome back to "squawk alley." we are still live at one mark

their clothes were turned over to the deutsche textil und bekleidungswerke g.m.b.h., a private corporation whose stockholders were s.s. officials, which reclaimed and repaired the garments-- with the use of unpaid prison labor-- and then resold them to the camp clothing depot for the use of new prisoners. the prisoners arrived often in railway trucks. but, there had been no hurry to unload this one. they went away, leaving the prisoners to die of hunger and cold, and typhus. we found them like this, frozen stiff in the snow alongside a public road. by some miracle, 17 men were still alive. all the rest, about 3,000, were dead. germans knew about dachau, but did not care. in buchenwald, there were about 80,000, of whom 34,000 were employed outside the camp in an armaments factory. during the first week of april 25,000 were removed by the germans to other camps because of the approach of the allied forces. when the camp was liberated on april 13th, 20,000 inmates remained. african negroes, albanians austrians, belgians, brazilians, bulgarians, canadians, chinese croats, czechs, danes, french