a big bank called deutsche bank.e bank that continued to lend him hundreds of millions of dollars, even after he was unable to pay that same bank back on some of his earlier loans. even after he went so far as to file lawsuits against deutsche bank when he failed to pay them back his side of the loan. he owed them $40 million and he didn't pay it, then he sued them, alleging that it was somehow their fault that he wasn't paying them back and they should pay him billions of dollars. i mean, there are aspects of the donald trump/deutsche bank relationship that have allowed seemed way outside the bounds of normal business dealings. they have been uncommonly generous to him. not just him, it's him adjacent, too. the whole trump/deutsche bank uncommon generosity story got even more strange when deutsche bank also gave jared kushner several hundred millions of dollars worth of loans in october of 2016, right before the election. one of the reasons this financially inexplicable dynamic between trump and the bank is because

a big bank called deutsche bank.the bank that continued to lend him hundreds of millions of dollars after he was unable to pay that same bank back on some of his earlier loans, even after he went so far to file lawsuits against deutsche bank when he failed to pay them back his side of the loan. he owed them $40 million and he didn't pay it, then he sued them aleleging it was somehow their fault he wasn't paying them back and he should pay billions of dollars. there are aspects that always seemed way outside the bounds of normal business dealings. they have been uncommonly generous to him and not just him, it's him adjacent, too. it got more rich during the presidential campaign when they gave jared kushner several hundred million dollars in loans in october 2016 right before the election. and one of the reasons this financially inexplicable dynamic between trump and this one big bank, one reason it's of interest is because at the same time deutsche bank was the generous lender of choice for donald trump and his famil

it sounds like deutsche bank's executives are in for it.iticians really call the shots in some of those markets in europe, in germany is one of them. amanda: it doesn't look like investors are very enthusiastic. we saw the stock reaction and the perception from what i can see is these are just to the bureau week players coming together and you make their inefficiencies worse by bringing them together. is that an accurate read? >> i wrote an article a couple weeks ago that tried to show examples from history where governments merging two struggling banks never really ended up well. they ended up bailing out those banks. there are probably both banks. they cannot really make money, their models are tough. and germany's banking system is problematic. it has too many banks, a lot of them are state owned, local government-owned, half the banking system almost, and they don't compete for prices or customers. thus, they can under price their products. in that market, deutsche bank and commerzbank, they struggle to get client said they can make mon

or about deutsche.f course, certainly, through my career, they have had many attempts to be a serious player in the investment banking business, as have many other european banks. one of the reasons they are not doing it is they found out they can't compete. if it is the case that european don't really think there should be a european bank competing in the space, fair enough, it would be a bit of a strange decision. it would be indicative of the fact that the eu does not in terms ofperly the economies of skills that come from the single market and so on. going back to brexit, you are in japan. alsoapanese carmakers and businesses work one of the first ones to ask for a guarantee from the government for the investments to be safe. what is the mood like right now? aware, am sure you are given the very courteous nature of japanese people, including the business people, i have not actually heard directly said about it at all. nor, for that matter, the disappointment about a couple of japanese companies in a

i want to get out to aneta who joins us in frankfurt who has more on the deutsche story deutsche at the moment is facing record low it share price. they've also got a number of things going on internally christian, the ceo of deutsche bank, has a lot to do to get their house in order before thinking about a merger. how much appetite is there within deutsche bank to do a deal aneta. >> well, actually, there is not much appetite currently inside deutsche bank to do a deal, but it's probably not what they wanted it's more or less the question whether they can afford not to do a deal. not just looking at the equity side, the equity story is miserable, but the bond story is even worse financing costs are on the rise, and when i recently spoke to the cfo, he was utterly concerned about those rising costs when it comes to financing the bank on the bond side. having said that, what's the picture? what's the story now, we have two kind of conflicting views. one comes from the regulators side, the ecb, and also the german watchdog. they are said to prefer a european solution, and it's quite clear

the fed want to know how much deutsche bank handle billions of dollars in suspicious transactions. the danish bank admitted that much of the $230 billion that flowed through its tiny estonian branch may have been dirty. another democrat is joining the race for the white house, the mayor of south end, indiana. he is forming an exploratory committee. the associated press obtained his announcement. he is 37, a rhodes scholar, and a navy reserve lieutenant who served a tour of duty in afghanistan. 2017ised his profile in with an unsuccessful run for chairman of the democratic national committee. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. >> live from bloomberg's washington, d.c. studios, i'm shery ahn. >> welcome to bloomberg markets. >> here are our top stories. global growth jitters. u.s. stocks fluctuate between green and red as wall street shows concern growth is slowing this year. highlightsom davos, from the world economic forum, including the bank

deutsche bank down 0.9%.oking for information regarding the billions of dollars of transactions from danske bank. deutsche bank saying they have these requests for information but there is no probes yet. carrefour one of the biggest gainers on the stoxx 600 this morning. it had sales boosted by latin america. those yellow vest protest in france are will all the analysts are talking about. anna: annmarie hordern with the stocks on the move. let's get back to davos. francine lacqua is there to talk more about brexit. francine: i was surprised that there was a lot of talk about oceans, climate change, and the u.s.-china trade concerns, but people want to talk about brexit. we are delighted to be joined by carolyn fairbairn. you have to live this reality every day and every minute. our business is ready for a no deal brexit if it were to happen? carolyn: some are, the vast majority are not. if you are a big multinational, you have been preparing for a while, especially if you are in a highly regulated industry. t

this is the last thing deutsche bank needs now. manus.'ght, bloomberg breaking that story overnight. and it's very telling. we have the deutsche bank ceo here in davos today. he is talking to investors and customers. deutsche bank is hosting a big event this evening and this is the last thing they need. he is trying to move beyond all of these investigations as the new ceo and they just keep popping up. there's another investigation going on in germany, and there are still probes into what deutsche bank did during the panama papers scandal, so it seems like every time they try to get out from underneath all of these investigations, that is apops up again, and it distraction for someone who is a new ceo who has only been in the off as for a little less in a year, trying to focus on turning around the business. nejra: chad, or to speak with you this morning. just to make this clear for our global audience, what this is about is danske relying on the global presence of banks like deutsche bank but also others to handle conversions of foreign

>> deutsche bank also has an activist investor. the activist has been fairly supported of deutsche bank's management up until now. it will be crucial to see how deutsche bank's management navigates the bank through this crisis. as you know there are many options on the table including a rivalswith regional that's been reported before. is how long deutsche bank will be able to keep the confidence of key investors. increasinglyng difficult for deutsche bank. guy: how much time have the banks got? recessionuld be in even before the united states. the cycle is clearly beginning to roll over or we can at least see the end of the cycle from where we are now. europe has not made enormous progress in fixing its banks. we have come some way we haven't gone as far as we should have done. how much do we need to see over the next few months in terms of progress? a key year ine determining the fate of a lot of these european banks. in the case of deutsche bank one could argue that this could be the year where an endgame in some way will have to

from delhi to deutsche.it is securing further funding from qatari investment vehicles. is it enough to turn around the struggling lender. resources are the biggest gainer on the stoxx 600, the deadly dam failure in brazil sent iron ore prices higher. meanwhile, aluminum falls as the u.s. removes sanctions on three companies. good morning and welcome to bloomberg markets. i'm matt miller in berlin alongside and edwards. bit ofet's put a little numbers around those things you were talking about and show you where we are trading. higher, and trading the mliv blog -- we will see some reflection of that tomorrow. they are heavily weighted so even if they are only up 2.2%, it is adding quite substantially in terms of points. that is why we are seeing outperformance. both of those mentioned in over the weekend newspaper reports are surrounding the possibility of those companies to do online delivery. we will keep an eye on that. let's have a look at the downside. here we have some of the other downnies in the headl

tomorrow we will be talking about deutsche bank. i'm not going to get you to talk about specifics, but are the mergers a good idea? many of them are specific place below one and trading below half. does this put value back together or change anything? >> it depends on what the banks are and where they are. clearep back, it's very that the ecb would like to see banking mergers. eurozone is over banks with specific countries, italy being one where that is the case. there are however other countries, like spain, where you have seen a significant amount of mergers from 50 down to about 11 now. that is one area where consolidation has happened with a lot of consolidation over the last 10 years. i think the first step is to make sure that you have the in country mergers with a bigger step and preparation for the capital market region that i wouldn't expect to see this year. thank you for joining us, stephen, from jpmorgan asset management. vonnie: four more with bloomberg first word news, here's courtney donohoe. courtney: president trump

do they keep deutsche bank? david: it has to be deutsche bank. alix: the government is facilitating this. what will they do to make it worthwhile for both of these banks? david: probably saying it somebody else's problem. alix: some of the earnings this morning, the beats and the have-nots. investors making a commitment of just under 2.5 times looking to sustain an a rating on their debt. looking at the power sector. dupont is another bellwether. they are heading lower. 2-3%,et sales of just barely keeping up with gdp. global expansion moderately lower than 2018. full year earnings per share forecast missed estimates. they are ending the year with record bookings, but you have to see how investors feel about that on the call. ups rising, it's all about the u.s. domestic growth, domestic revenues of 6.3%. -- up 6.3%. today. a bit higher results,, more company including the tech world. this is bloomberg. ♪ viviana: this is "bloomberg daybreak." corporate america wants to and president trump's trade war. a coalition of 200 trade associations will st

won a, deutsche bank has commitment for a new investment from carter.say the investment is likely to be made from the sovereign wealth fund in qatar. now, steven arons. what is happening here? stephen: well, i think that it is straightforward, they are saying they stand ready to make an investment. it is a good time for deutsche bank, they probably will need eore capital, if plans to merg with another bank go ahead. so it is a good time and of the qataris, we do not know about the timing or the size of the investment, but what we know is that they stand ready. guy: what does this tell us about the potential deal between deutsche bank and -- bank? steve: we do not know if it is related to that, but it seems to be. deutsche bank, analysts say the bank will need more capital if it does merge with the other bank to pay for restructuring. if this commitment by the qataris is in direct relation, i do not know, but it is certain that they know the state of deutsche bank and they know what may happen. and they know about the merger speculation. so it stands to

deutsche bank and commerzbank.ains off a bloomberg story that seems to have been taken well by commerce they investors, and especially deutsche bank investors, 8.3%. remember, they want them to get together, but the concern is that neither one would help the other end of the merger would result in bad news for each investor. investors in each of these banks. take a look also at what we have got going on in the pound today. defeat forushing theresa may, the biggest loss for her government in a parliamentary vote of all time. tonight we have a no-confidence vote. nonetheless, this three-day chart of the pound shows relative stability. last night there was a little bit of concern about the possibility of a no deal brexit and today we have seen the pound recover with a whole type around 128, 129 and it looks like investors are no longer concerned about this. they think that theresa may is going to win the no-confidence about that starts in about three hours. that is a look at the european markets. vonnie: in the u.s. y

this for problem is deutsche bank? theoretically they should have had that responsibility to deal issuese money laundering surrounding these transactions. how much hot water are they in? talking about deutsche bank, it's always relative. water on several fronts. guy: cumulatively. keith: and in -- increment step, but an important one. -- federalderal bank reserve knows for sure what they had four. , denmarke, as you know doesn't have the global network that the company like deutsche bank does. reporting it seemed that deutsche bank, bank of handles and jpmorgan some of danske bank's transactions. of: this was money out russia, the former soviet union, and forwarded on to the united states? exactly. some people with knowledge of the situation have indicated that deutsche bank was handled more than those two u.s. thanks that i mentioned. a whistleblower from damsky side has said that deutsche bank operations handled some of the cash. so, it is more hot water. one interesting thing that happened today was that mr. savings

deutsche telecom can increase its stake in b.t.n agreem with its british rival expires later this month neither company was available to comment about the report we are joined around the desk by karen choi or colleague to help flush out this story good morning again, karen. help us understand more about this story. >> this is the most exciting story for 2019 so far if there's actually truth behind it so far what do we have, we have adding fuel to the fire a report in one of the newspapers on the weekend suggesting that powerful advisers were brought on by bt group and these two people in particular had previous golden sacks advisers or bankers for the big u.s. bank. bt has not confirmed whether they're on board to provide some form of defense. basically under a current deal deutsche telecom cannot increase its ownership of bt until the 29th of january beyond a 15% level. don't forget it picked up shares in bt when there was the purchase of ee at the mobile carrier by bt, so to fund that deal bt issued shares to deutsche telecom so

why would they be interested in deutsche bank?y know the timing of this extra investment or the size of it but what is the attraction for qatar? think qatar knows deutsche bank very well.they had been a close contact for a long time. qatar feels it is probably comfortable with the people they know their. it is quite an opportunity to -- it'se book price of lower than any other bank in the sector. it could be seen as an opportunity, and it is a the germanngle with government doing them a favor. francine: we know that deutsche bank in the german government have intensified talks. what is the german government want out of this? when did have a problem with the qatari investment authority being a big shareholder? steven: i don't think they would have a big problem. i'm pretty sure there are contacts between the german government and qataris. i am pretty sure if they want to make an investment, then they must have good relationships with the german government. the qataris have long been investors in many blue-chip companies of germany.

deutsche bank is going to be cutting the bonus by around 10%.che bank, the worst-performing major bank stock in europe during 2018. vonnie: president trump making his case for a portable to the nation tonight. we are joined on the phone by noah. you have a piece out on what the president may do should he talk about emergency powers. it is in bloomberg opinion today. a patternestablished of clearly unconstitutional action. waiting for the courts to block it and winning in his estimation, political points with his republican base regardless. does the president have anything to lose i declaring an emergency -- by declaring an emergency? noah: he does not have anything to lose if he does not mind being rejected by the courts and eventually possibly sanctioned by congress by flouting the constitution. his strategy from the beginning has been break the constitution and do not worry about the consequences. that may lead to deeper resistance from democrats and republicans. vonnie: you clearly state in your column that this would be on -- would be uncons

let's start with the ceo of deutsche bank.att spoke with him in july as he announced the first quarterly results under his leadership. inwe will find a way to come below 90,000 at the end of next year. there is more than that. actually materially reduced the cost of business in the second quarter 2017. we are not only working on the headcount number and workforce number, we are working with far more disciplined on other cost measures. we have technical programs, strategic programs, and i see the progress we have made. >> let's talk about the individual businesses. , maybe the most important core business. you have talked about trading there. fic trading dropped 17%. is it due to headcount reduction? is it due to cost reduction? >> i am glad you are saying the most important business. it is very important for me. the corporate investment bank is the core ingredient and keep these of deutsche bank. key piece of deutsche bank. we went through a transformation in the second quarter. you see the adjustments we have done. we did it

are going to going into the trump deutsche bank relationship but you know this banks been on trouble for a number of years now a lot of people would argue that it's insolvent that is just being right you know held up with sticking below a scotch tape as the lehman brothers twenty nine take an oath of office global meltdown oh what's your take on deutsche bank i think it's funny max that a few days ago the headline crossed that the e.u. and the e.c.b. are in favor of do it your bank merging with commerce bank. as if you're going to take you know like that and all the sudden turn it into you know something real i mean they're both trap. going towards zero whether that puts off the inevitable or not i have no idea reminds me a lot of some of the force mergers of two thousand and eight remember like merrill lynch being bought by bank of america things like that and that's what this smells of. the able to be in oregon by lehmann brothers and yeah i had all that going weddings to try to cover up all the insolvency which they claimed was a liquidity issue it wasn't insolvency these banks ar

bank, and i will lend my political support to deutsche bank >> so it's not true that the rumor that the government is only interested in a cross-border merger came from the government >> make no mistake about it. never ask. never ask a german minister about rumors we are talking about facts we are talking about decisions never about rumors >> isn't it about time the bank was put out of its misery, though it's been an embarrassment, hasn't it, that one of germany's most prominent banks globally has had nothing but fine after fine levied against it, and here we see, you know, ceo saying again, we're having to deal with issues around money laundering and suggestions about activities that are inappropriate >> when you look around worldwide, you can see a lot of several banks that have been in trouble the last couple of years, anyway. when you remember the big banking and economic crisis in 2008 and 2009, this was -- there's a reason for that or at least the initial step for that was a banking crisis in the u.s. it is quite a normal thing that a company or a bank in some years is perform

bankcb favored deutsche merging with another bank. deutsche bank has become a merger target after its share price plunged in the past year. builders will not offer concessions to the european commission in an effort to seek approval for their merger. brussels made insurmountable demands from the groups. microsoft is investing $500 million in affordable houousingn seatattle. it will go towards building homes for low and middle income workers. 's expansiond amazon has driven up the price of accommodations sharply in recent years. >> retailers are braced for disruption from the yellow vests protests.. and the citys mayor h has calleled for support fr t the centrtral government after protesests have left bubusinesses strtruggling.g. a devastating blow during the key christmas and january sales period. clutching for sale signs as if their businesses were on the bankruptcy. in toulouse, they are reeling from the yellow vests movement. >> my sales dropped 80%. i don't think i can make it to the end of the month. >> displayed inn windows, the

if that is true, deutsche bank will be looking -- bankers at deutsche bank will be looking at other placesdeutsche bank has been a place where it has not been much fun to work. i think that will be a problem in 2019. anna: thank you. rons joining us with the latest on that bloomberg exclusive story. next, we will take a look at the stocks to watch at the open, including sainsbury's, which reported declining christmas sales. otherthat have effects on retail stocks? we will see if that happens. this is bloomberg. ♪ matt: welcome back to bloomberg markets. we are seven minutes away from the start of trade. let's get your stocks to watch from around the newsroom. annmarie hordern is looking at daimler. on yetadeo is focusing another british supermarket, sainsbury. let's start with you and marie on the cards. -- annmarie on the cars. outr luxury unit just eat gain.d out a we are seeing calls for the stock to trend higher on the open. trade wars between washington and beijing looking encouraging. that is positive for the auto sector in general. matt: we should see what the incentives due to car

what's your reaction to what donny deutsch said? >> it's repugnant.nny deutsch on msnbc numerous times on numerous topics but the idea is repulsive. the idea that border security and a wall mean somehow you want america to be white most of your viewers know i married to a latina, beautiful and talented latina and a man over my house today was helping me on projects whose from el salvador and was talking about how he came to this country legally things everyone else should come legally. my wife's parents came to this country legally and they want everyone to come here legally. the question of race or ethnicity the question of what is america about and it's about everyone has to follow the same set of laws. the more people like donny deutsch talk about border security in the same vein as racism or kkk or ugly parts of our past the more i think they help the argument that the president is making wishes he simply wants to make sure that our country has immigration system that follows the law. liz: and a lot of minorities on border patrol in montrose with

is we look at deutsche bank almost on the daily basis. new chief executive in charge who is trying to move away from legacy issues. when will he be able to do that? steven: that is the question he is asking himself today. he is here today to meet world leaders and investors and clients. tom: bohemia with angela merkel? steven: i don't know. tom: how convenient to meet here? francine: maybe, or maybe the new leader of the party. what is his number one priority right now? steven: putting the bank into calmer waters. it's time it is reported that something goes on at deutsche bank, it is not something they like. tom: behaviorally, what i find fascinating in this rolling wreck, is it is obvious there was some kind of money flows off of the estonia project. i get all of the romance of it. don't you just stand up and say effective immediately, we are done with this and moving forward? why can't this bank do that? to be fair, this happened in the past in 2015. it did pull out of estonia because it did see suspicious activity. pulled outher banks

we know that deutsch bank lends this president or has loaned him a lot of money. we want to know whether or not money laundering is going on. we will do a little of that. some of that continuing our work, but not concentrating just on that. >> deutsch bank paid these enormous settlement it is with both domestic and international about money laundering. >> that's right. >> you had preexisting inquiries and they were the bank that became the lender of last resort for the president. >> that's right. no other bank will lend him money. >> do you want to talk to the head of deutsch bank or call him before the committee in. >> we want to follow-up on the letters and see if they have a change of mind now that things changed in the house. >> you are saying the ranking member. >> that's right. he did not respond and we will see if they will be more cooperative and see where they go from there. >> you talked about mulvaney and cfpb. two things happened in the area that you oversee financial services. is a deregulatory push at the executive level and legislation passed that r

let's start with deutsche bank. very interesting.t of an interesting political move given all the tensions between qatar and saudi arabia. qatar is and well known. the qatar investment authority is the vehicle that would be doing this specific investment, the same fund that has backed volkswagen $320 billion. already have a stake in deutsche bank, so doubling down ahead of this rumored merger with commerzbank. david: the negative valuation is pretty attractive at this point. reporter: probably. lisa: i have to wonder what valuation with the merger look like. would this be a retail bank, essentially, in germany? we know those struggle. or would it be a global investment bank? reporter: all we know is there have been a lot of talks on going that the german government has a vested interest in this more politically than anything. they are not going to let deutsche bank go out of business. the name alone is going to survive. david: there's no question the government is not going to let them disappear. at the same time, they will not heavy

jes: well, i'll leave deutsche bank aside.he first telephone call i made when i was offered the opportunity to lead barclays was to cs bank to become a chief risk assessor for barclays. i was ahead of risk. i think the market is somewhat missing this. it's been thinking has changed pre-crisis versus now. when we created the non-core part, the assets we wanted to close down, essentially what we did was we took every single derivative contract written in the bank prior to 2014 into the rule and closed it by june 2010 and 2017 last year. our portfolio is a portfolio constructed with new capital and regulatory environments that we face posted the financial crisis. you go into 2006-2007, barclays had 4% of capital against the total risk assets in the bank. today, it's 13%. so we are well over three times the amount of capital we have against the assets. back in 2006-2007, aaa securities, even if they were made up of subprime mortgages, had zero risk. we had no capitals against it. today with the modern bank, everything is a risk. w

deutsche bank, our stock of the hour.itial gain, shares are tumbling the most in a month. emma chandra is here. you don't say in the middle of the year if things don't improve, we will emerge. emma: this is a bloomberg report that a government -- german government brokered merger with a smaller lender commerzbank could happen by the end of the , if it will happen. investors not liking it because it suggests it sees a merger coming in the middle of the year, then the situation at deutsche bank could be worse than thought. the company certainly on a dreadful streak. we will find out potentially that will become a reality tomorrow. earnings are due. what do we expect? emma: analysts expecting trading income to come under pressure. we have seen that in the u.s. also a recent morning from societe generale supporting that view. we just saw a chart of revenue growth here in the u.s., -- at deutsche bank. seven quarters of negative growth. expected to be an eighth quarter tomorrow. and management will be quizzed about the progres

dge fun interest in deutsche bank, commerzbank make a merger more likely?does, but maybe only slightly. the major drivers determining whether there will be a merger is not cerberus, but cerberus does play a role.the most important players are the ceo of deutsche bank , at commerzbank, the german government and regulators, but severus plays a role, with stakes in both banks. so if they were to agree to a merger, that would facilitate a deal, but i don't think they have the major voice on this. ven, thanks very much. steven arons, our german banks reporter joining us out of frankfurt. don't forget, bloomberg users can interact with all the chart to see on -- you see on bloomberg television, just type "g tv " into your bloomberg. save charts for future reference. i mentioned that, because up next we have our world-famous battle of the charts. this is bloomberg. >> they have to defer, they have to delay. the prospects of a second referendum are rising and the prospects of no brexit at all are rising. ♪ ♪ welcome back to "bloomberg markets." just about 54 mi

how does barclays make sure you don't turn into deutsche bank? jes: i'll leave deutsche bank aside.he first call i made when i was offered the opportunity to lead barclays was to become the chief risk officer. i have a very good head of risk. the market is somewhat missing this. investment banking has changed a lot precrisis versus now. when we created the non-core part of barclays, the assets we wanted to close down, we took every single derivative contract written in the bank prior to 2014 into that non-core pool and closed it by june of 2017. our portfolio right now is really a portfolio constructed with the new capital and regulatory environment that we faced post the financial crisis. you go into 2006 or 2007, barclays had 4% of capital against the total risk-weighted assets in the bank. today, it is 13%. we are well over three times the amount of capital we have against the assets on our balance sheet. moreover then that, if you go back to 2006, things like aaa securities, even if they were made up of subprime mortgages, had zero risk. you had no capital against it. it was not

inquiries into deutsche bank was part of the work we had already started to do. we had sent letters to deutsche bank trying to find out about two internal reviews that they had done. and what did they find out? of course they did not answer us. we've been trying to find out about the money ties to russia through deutsche bank. we know that deutsche bank lends this president -- have loaned him a lot of money. and we want toe know whether or not any money laundering is going on. so we'll do that continuing our work. but we won't be concentrated just on that. >> deutsche bank has already paid these enormous settlements with both domestic and international regulators about money laundering. you had pre-existing inquiries. they happened to be the bank that became the lender of last resort to the president. >> that's right. no other bank will lend him money. >> so do you want to talk to the head of deutsche bank? are you going to investigate him? >> i think we are going to follow up on the letters we have already sent and see if they have a change of mind. now that thi

the last time cost money and deutsche had performed together was in south america the previous oldest thought it was well talisman noticed a vocal problem. at first there was no cause for alarm but it turned out to be serious we had to reside in some paulo which was pretty well and very very good at the next one was in. lima and he didn't feel comfortable is it i don't want to see what's what's wrong and two days later it was but his eyes it was up again it was very very very good and then he burst out again and then his doctor found their reason for this bunch of beacher and imperiled saludos they stayed bail much a picture. after journeying to high altitude in the undies not you picture itself is two and a half thousand meters above sea level the trouble with his voice began it ruled out old performances for a period that in the end lasted five months it's very simple a tiny little blood vessel popped open and vocal chords vibrate so many times per minute and they touch each other each and every time and if something goes wrong there. it cannot heal on its own when you don't know it

end of the day, deutsche bank, german bank, they will be fine. >> right, they are called deutsche bankter] alix: steel markets? we liketeel business, that business, it has been an incredible source of yield for clients on the balance sheet and it's one that we will continue to be active in. know henry pretty well. what did you think of that? >> i always find it interesting when any part of kkr things about the debt market, you tend to tune in. lisa abramowicz wrote a great blog about something he said about leverage loans, backing off a little bit in a way that makes them more skeptical and they said that if kkr is even just a little skeptical about the leverage loan markets, literally the king of lbo, maybe take a step back. , but was some enthusiasm you really have to read pretty closely what he is saying. >> this coming off the global outlook that was released last season where they were scrutinized. a lot of that money flew out of leverage loans at the end of last year. kkr essentially saying that they were still positive on leveraged loans, but they think they need to be able to b

michael: citi has passed deutsche's in terms of the fixed business. the first, worsens quarter -- worse since the fourth quarter of 2011. citibank did have someone else. they mentioned a story we broke about taking a loss on one of their ethics hedge fund clients. there were some idiosyncratic report thatti's perhaps made it a little worse than otherwise, but it was a rough environment. deutsche bank would have to outperform this quarter to show anything close to neutral. tolor: we will get you back not only talk about the read through to deutsche bank, but the other u.s. banks that will be reporting later this week. that was michael moore. i want to get a check on the first word news. more.ey donohoe has courtney: president trump is dismissing a top republican senator's suggestion to reopen the federal government temporarily while he tries to reach a deal to fund his proposed border wall. senator lindsey graham says if a deal cannot be reached, the president should declare a national emergency, and as he left the white house for new orleans, presiden

deutsch bank is important.o decade long relationship with trump including loaning trump businesses over $300 million for a golf course and hotels when other banks would not. trump's son-in-law jared kushner also has an unsecured line of credit for between 5 and $25 million and the bank paid more than $600 million to settle a money laundering scheme with russians. "outfront" now congresswoman presley who sits on the house financial services committee which is one of the ones investigating this bank, that they're cooperating with. congresswoman, what can you tell us tonight about what your committee is trying to find out from deutsch bank. >> first, i just want to say how appreciative i am to have been appointed to this committee under the leadership of chairwoman maxine waters. this house is the only checks and balance right now we find ourselves the country at a crossroads at a time where corruption is at a height and we're very polarized. the american people deserve truth and this committee will pursue that. w

and truck traffic because of the strong winds it's there for unclear why the freight train from deutsche upon was allowed on to the crossing considering it was also hauling trucks semi trailers. russia is in mourning for at least twenty one people reported killed after their apartment building collapsed on new year's eve authorities suspect the building came down because of a gas explosion in the city of magnitogorsk in the ural mountains hopes of finding survivors in subzero temperatures are fading but rescuers spirits were lifted when they pulled a baby boy alive from the wreckage. it felt like nothing short of a miracle as a baby boy was pulled from the rubble alive thirty five hours after the collapse. oh. rescuers say he survived temperatures of minus eighteen degrees celsius because he was wrapped up warmly in a cradle. the boy was flown to a children's hospital in moscow his condition a serious but stable everywhere a moment of hope. today's search crews recovered many dead bodies from the rubble. more than twenty people are still missing. the chelyabinsk region has announced a da

also the concern here with deutsche bank is russian money laundering. what role they may have played, that bank, where russians moved through money through that bank, something that members of congress want to look at. they have a lot of power. it will be very difficult for deutsche bank to resist some of the subpoenas and some of the requests from the democrats. >> all of which underscores once again elections do have consequences. the democrats won 40 seats in the house of representatives. they are now the majority. they have subpoena power to go after all sorts of information. shimon, thank you very much. >>> joining us now, senator angus king. he serves on both the intelligence and armed services committees. senator, thanks for joining us. >> yes, sir. >> let me get your reaction -- we will get to russia in a moment. reaction to what we heard from the president. he is open to a two or three-week temporary deal provided that you give him what he calls a prorated down payment on a wall. he wants $5.7 billion. if you prorate it for the year, you heard

deutsche bank, if it was put together with another bank, what would it do to the european space?: that is an interesting theoretical question. ishave confirmed that that not something they are looking at actively, but it is speculation. we are looking at deutsche bank as one of the weakest performers in the group, the only noninvestment grade entity on a standalone basis. we are looking more at min investment grade level ratings for the other firms. so from that perspective, deutsche bank has suffered syndicate revenue -- and very low domestic profitability as well. this point, itom is uncertain how they will solve profitability issues, because german banking, if you go from retail banking it is relatively unprofitable, about 10 have a 20 20sis points compared -- 10- basis points compared to the rio spears. and -- compared to u.s. peers. it is not necessarily a combination that falls with profitability and structural issues for deutsche bank. guy: share prices trading north of seven at the moment, 7.4 and composition is a factor for investment bankers. so how big a problem is if

is it a great of confidence in deutsche bank?med sergie: i think it's probably a partial vote of confidence -- confidence and qatar'spotter's -- appetite to do these quick deals that would prop up. they did it through the financial crisis with barclays. are trying to make a connection with germany and deepen that relationship. they've committed on about 10 billion euros in investment and germany. if they wanted is the best political bank for their buck, getting deutsche bank propped up probably the best thing. they have a deep pockets. how quickly could visit deal come to fruition? is amed sergie: i think it matter of was they agree on the size and the price. this can go very, very fast. qatar has shown in the past, they invested in ross net in the past, it happened overnight coming essentially, 420% on one of the largest oil companies in the world. manus: i love the line and that they injected 10 billion euros in germany over the next five years. we will see what kind of deal comes to beer. a good story. our middle east editor,

will be talking to deutsche bank's head of european strategy.omberg. ♪ francine: finding a new plan. theresa may opens cross party talks to forge a new brexit deal that can pass through parliament. had government survives a confidence vote. at theseems to be forefront of the -- good morning, everyone. good afternoon if you are in asia. this is "bloomberg surveillance." tom keene and francine here in london. a lot of a quieter day when it comes to brexit as theresa may tries to get her ducks in order. tom: the quieter day, but within this constitutional crisis, now what? francine: also, i have very important conversation with the european minister under margaret thatcher. one of the things i try to ask so sure thatrket we have a note of brexit and you're a clear the procedure. who revokes article 50 if it were to come to that? contaminant do it -- can parliament do it? were you on tom: the conference call with the chancellor? francine: i was not, where you? -- were you? tom: i was not, i am an american. francine: let's get straight to the bloombe

deutsche bank's board plans to cut the bonus pool by 10%.ost read stories on the bloomberg terminal. china is set to propose a wider deficit of officials look to boost stimulus. debtrowth of u.s. national is a horrific situation. demands billions more to combat illegal toigration offers no plan end the political impact. na: price conscious shoppers turn to discounters it to buy their turkey and stocking stuffers. general merchandise sales also down by 2.3%. complaints are rising among the users of some samsung smartphones that they aren't allowed to delete facebook. models come with the app already installed but owners find it is almost impossible to erase it. facebook says the disabled version of the app acts like it has been deleted. trump demanding congress provide billions of dollars to combat illegal migration. speaking from the oval office, trump said funding for a border wall is the only way to stop the partial federal government shutdown. democrats rejecting the u.s. president's description of a crisis on the border. trum must stopg

. >> let's talk about deutsche bank.a lot of speculation, less about earnings, but whether the company will combined with another bank. what have we been learning lately? >> deutsche bank has been a problem child for a while. we're seeing an interesting split and merge. everyone is trying to figure out what is the best solution to this problem. the german government wants a national champion, to merge deutsche bank with commerzbank, so you have a true german powerhouse. regulators are not so sure about that idea. they would rather they combined ,ith some other european bank but not necessarily another german bank. the reasoning is two wrongs don't make a right. weak bankscombine two and hope you get a strong bank. that is the diversions we are saying. they are hopeful there is a solution around the corner. everyone is clearly working to find a solution. >> great to get your perspective. meanwhile, breaking news, aurora is doing a convertible bond issuance of $250 million of senior notes due 2024. the shares not moving to

the challenges of deutsche bank and they become more challenging.ms it has received a house financial committee inquiry that goes into various themes. the flows of money around the world. bank,dea, rebuilding the start -- standard chartered trying to move on, deutsche bank having trouble moving on. francine: the leadership at deutsche bank changed and you see things being put in place by the chief executive but this is legacy issues. if this keeps on coming back, then it not only distracts him, but it could change the root of how the government of germany wants deutsche bank to evolve. did a panele ago, i , no one really criticized him other than we need a german solution. that is where deutsche bank is. francine: what is their solution? if you look at the german solution and we talked with our ?eporters, do they consolidate do they merge with commerzbank? there is appetite whether the commerzbank would be willing to entertain the idea. tom: and ending theme of almost inquisition into this banks were you want to clear the market and move on. francin

are down 45-50% for commerzbank and deutsche, that is now getting on the radar screen.eds to be impasse is been going on for far too long. let's bring you in on that very subject. i think there has been talk about the need to merge, in particular, german banks were as long as i have been talking about financial markets. what are your thoughts on whether 2019 could be the year. >> in a sense, because the macro environment is soft and the political pressure is only going to rise because of the performance of equities , if it does not happen this year, the question might well be when does it needn? terms of macro, we to do this, it seems to be rising. our european banks ever going to recover to that level? european banks, after the crisis, did the dirty work and have been in the clear especially relative to european banks. will that ever be a nice trade. these banks are trading at -- >> i know, i know. this is the point i was making about how low expectations are in europe. it is particularly true in the banks. there are reasons for that that we talked about. the question