what is deutsche bank?oots are in serving the german and european economy globally. particularly, our home market is an export nation so we continue -- plan to continue doing so. our clients rely on us to provide products and services we do, to build on relationships around the world. there is true value in that for stakeholders and shareholders, and that is something we will continue to execute on. matt: one of the issues in your discussion with commerzbank was your refusal to abandon the u.s. trading operation. why not get out of what is a risky, volatile, lossmaking operation? why not get out of the u.s. operations? comment onn't specific elements of the discussions we had with commerzbank. we worked together openly and transparency on the business case for the merger. the u.s. market is a core market and frankly the clients we serve. some sort of wholesale decision around the united states was never part of our considerations. matt: what about the jobs issue? verdi onsentative from your supervisory boar

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

guy wants to rescue deutsche bank, not commerzbank. if you look at the earnings of deutsche bank, over the last four years, they have released .bout $10 billion lost the economy in germany is worse than that, the deutsche can't survive. therefore he would stabilize the earnings of deutsche, so they .ere focused on commerzbank [indiscernible] -- would have meant that in the end come up to 80% of commerzbank had to be fired. that it could not realize it. i think they could not have deutsche bank with their strategy be one of the top global investment banks worldwide, and commerzbank has nothing which deutsche's can support in this focus. vonnie: who would you have merged with deutsche bank? are there any options out there for the lender? eter: for deutsche, the option would be clear for many years, from my side. unitlobal investment bank is extremely risky and nonprofitable, so therefore a first step would be to get rid the chairman of the advisory board, a former goldman partner, and a new chairman could change the strategy. that would

deutsche bank and commerzbank are discontinuing their discussions.eutsche will continue to improve all -- to continue on improve their long-term profitability. the news is they have decided to tes continue discussions customers bank, doour bank, as it stands, those discussions are off. let's get back out to annetta in frankfurt with more. annetta, we've got the news. discussions are off. what now >> that's a good question. actually, that's a question probably, hopefully someone from the management board will discuss with us later during the course of this day clearly, i think the execution risk at the press release is stating far higher and the potential benefits that's actually what they concluded now. we were talking earlier about it is lead for a new capital for that merged entity, which probably would have -- the opposition from labor. i guess nobody like the increasing opposition in the end killed that deal perhaps also the concern that the equity story wasn't good enough to sell to investors and also to regulators, and perhaps in addition to th

why was deutsche bank so desperate?selves in the united states. trump even at the time before he was running for president was -- he was very well known. he was a splashy name, a big reality tv star. he had a knack for getting publicity and for attracting crowds. and that was exactly what the bank needed at the time as it tried to make itself not just a random german bank but a household name in the united states. >>> let's check in with chris and see what he's working on for "cuomo primetime." >> another fan with me tonight, coop. what do you want to say to anderson? >> you're my second favorite show. >> oh, thank you very much. >> he says -- is don your first? >> he says is don lemon your first favorite show? >> no, "cuomo primetime" is of course. he's my third. but i bet you're amazing. i bet you're amazing. >> you've said enough. so she's with us tonight. >> i love your show. never seen it, but i love it. >> it's the best fan i can have. one with no exposure. what we're doing tonight is we're taking a look at what y

would deutsche bank be open to that?t was one of the reasons we felt we had to look at the merger as it became an opportunity for us earlier this year. in market consolidation is a strategic opportunity one has to look at when that opportunity arises. commerzbank is the last remaining significantly publicly listed german bank, it was a national partner to continue. having decided to go our separate ways, it opens the door to potential cross-border .onsolidation i would not speculate on the nature or the timing of that type of event. matt: what would your reaction now doing azbank bigger kind of deal with a cross-border peer? would that be a problem for you competitively? , it was one consideration that my management board colleagues and i needed to take into account as we thought about the decision we announced today and our future path. we feel we compete successfully in the german market today. it is a very competitive market. we are obviously aware that we may face changes in that competitive environment in the future

. >> my question, why would deutsche bank bid for commerzbank? being pushed into it by the finance ministry which must have to back up -- lack of -- back off. is this a strategy? that is a good question. many people, when they tried to answer, they start from the wrong point of view. why can't they do anything else? one analyst put it, the least bad option. the turnaround plan by the ceo is not going to plan. it is not delivering the results they were looking for. the share price has been declining. they need to look at it. it is an opportunity to buy it. if they think this will take them forward, why not buy them? the alternatives do not look good. that is why they are in these talks right now. >> thank you very much for joining us on this developing story. deskwe are watching slowly closely. another great story on the terminal about deutsche bank firing a traitor for naming a third-party in a chat about a trade. one clients will continue to follow. we are minutes away from the open of trading. 9.5 to be exact. we will take a look at stocks to w

why was deutsche bank so desperate? were really eager to make a name for themselves in the united states. trump even at the time before he was running for president was -- he was very well known. he was a splashy name, a big reality tv star. he had a knack for getting publicity and for attracting crowds. and that was exactly what the bank needed at the time as it tried to make itself not just a random german bank but a household name in the united states. david, fascinating reporting as always, thank you so much. >> my pleasure. >> let's check in with chris. >> another fan, another fan with me tonight, coop. this is carlina regina cha cuomo. what do you want to say to anderson? >> you're my second favorite store. >> thank you very much. is don your first? >> he says don lemon so your favorite? >> cuomo, of course, he's my third. i've never watched you guys, i bet you're amazing. >> you've said enough. >> she's with us tonight. >> i love your show, never seen it, but i love it. >> the best kind of fan i can have. what we

deutsche bank is trading down 3.7% today we had obviously the report card from deutsche bank showing results. net income showed a big dump year-on-year, but still a lot of questions about the privacy of their investment banking units and also the cost prepping trajectories commerzbank, however, has been up it% trading up almost 2%. remember, commerzbank is a name that other banks have been -- perhaps that is one of the reasons why that stock is doing well okay i want to bring in an expert from the topic owe just wonder looking at deutsche bank, the development over the last 24 hours, i mean, how do you see deutsche bank's options from here? >> well, we have a negative trend on the write rating, but from our point of view, the merger could have been a driver. further negative rating action. >> i mean, you saw in the first quarter that the results weren't bad for dooub bank they weren't good in absolute terms. it was a difficult quarter anyway for investment banks globally i mean, they've made a start by bringing the costs down in line with their plans it's a tough revenue environment.

what we have is we have russian money out of moscow going into deutsche bank, and we have deutsche bankn new york lending money to donald trump. i think what everyone wants to know, including congress, is are these two things connected or not connected. >> and you paint the two factors here that are very interesting. you put them all together. it's not just this kind of long relationship with trump and deutsche bank, but also then the relationship that deutsche bank has with russia, too. tell me more about that. >> well, i mean, that's right. basically, deutsche bank was very ambitious. it was trying to expand, become a kind of global bank. what i'm told and what i have written is that it was more or less kind of captured by state interests in moscow and was essentially running a money laundering scheme for vips, for kremlin connected officials, for oligarchs who were siphoning money out of moxco, bouncing it through the baltic states into america and the western financial system generally. now, deutsche bank has been fined for this by regulared including in new york. it's paid penaltie

friendly insofar as this makes it easy for deutsche bank to respond. maxine waters asked for it two years ago, she didn't have subpoena power. there might have been public interest in it but the bank secrecy act prevented deutsche bank from doing anything along those lines. >> right. >> subpoena power, you know, gives congresswoman waters, adam schiff, you know, the chance to -- the power to command this and deutsche bank has full defense that, you know, they're allowed to turn this over. so i don't think the president's lawyers are going to have much of a chance if they're going to try to fight this. >> alan garten, a lawyer at the trump organization, president's business, said he's exploring options to try to block deutsche bank from responding to the subpoena. are there any options? it sort of seems like this is a cul-de-sac. >> i don't think so. >> there's not any -- >> they're very creative. i'm sure he's going to try to find something that might pose an impediment, but i don't see how they can avoid this at this point. >> given the earlier report

remain at deutsche bank -- and deutsche bank cuts revenue targets.near-term growth due to brexit uncertainty. and uber's ipo comes down to earth. the ride-hailing service aims for a valuation of as much as $90 billion, taking a more conservative approach after the listing fell flat. everyone.ng, good afternoon if you are watching from asia. francine lacqua in london, tom keene in new york. gdp in the u.s. is what we are looking out for and brent moving a dollar lower. morethe markets a little stable after the joy we saw yesterday. i only have one data screen as an example here, but the theme of the week is a stronger dollar. the gdp report today will be a real mystery for economists. francine: we will have a lot more, of course, on the gdp reading. it's get straight to bloomberg first word news with viviana hurtado. time is running out for british prime minister theresa may enter plant keep the u.k. out of european elections. may is unlikely to put her brexit bill before parliament next week. she probably won't get it rectified before the parliament

let's start out with deutsche bank. deutsche bank was once removed from this story.ll browder, maybe they did not which might hold the key to this story. potential thathe there are deutsche bank employees in united states flagging things that long ago has to be a concern. >> deutsche bank's role in the money laundering scandal is that of a correspondent bank, which comes with a different set of responsibilities than the frontline banks. it is a respondent bank. deutsche bank's responsibilities here were to know its customers. the primary bank has more of the responsibilities in terms of going down to the individual customers. nonetheless, a do have a burden of responsibility. as we have seen recently, it is not necessarily enough to be a correspondent bank to completely avoid all responsibility. the regulators have come after many banks who played such a role. to that extent, ignoring the alarm bells, turning a blind eye to the suspicious transactions, the scale of which was staggering. $150 billion. it is troubling. it comes as there are other scrutiny on deutsche b

meanwhile, in germany the deutsche bank is trading down almost one-third of a percent. similar story for cac and in italy we're seeing the ftse mib trading half a percent lower as well let's take a look at the individual sectors this morning as well. you can see there is a bit of positivity around utilities, but not a huge amount. the banks talking about unicredit, commerce bank in particular you can see there's down side there. .4% lower. based on what's going on in the gas sector as well, lower by 1 %. the big story this morning, commerce bank shares, they're trading significantly higher up more than 3%. that's after two separate reports that unicredit is considering a multibillion bureau bid for the german lender the financial times and reuters have reported the bank plans to take a large stake in commerce bank if the ongoing merger talks with deutsche bank fail. unicredit has declined to comment, but reuters has reported that they have disagreed about the pace of those merger discussions the commerce bank wants discussions to be quick while deutsche bank wants to go

funds are betting against deutsche bank.lement we haven't talked as much about in this deal, cerberus, the private equity firm that has stakes in both. they are certainly behind-the-scenes. i'm told they are advising on this, so we will see. david: but also something has got to get done. there's got to be a plan b. worses a bank doing even than deutsche bank, nomura. their shares are down even more. reporter: they are indeed. six months slide down 23%. that is worse than socgen and deutsche bank. it is interesting reading on this little bit and what analysts are saying. they are trying to improve their profit through cost-cutting instead of growing. that can work in the short term, as we all know, but in the long-term it is not a great strategy. alix: it is definitely not a good strategy. who would have thought something worse than deutsche bank? let's get to our next story and talk about a nice pay package here. a small california bank, axos financial, who ceo made more than jamie dimon, yet it only has about $10 billion in

deutsche bank is not the only bank the committee subpoenaed.ks they subpoenaed as well saying they are complying. this is yet another big headache for the president. >> do you think, jeffrey, the mueller team did have access to the president's tax returns? >> you know, i'm going to say those three forbidden words, i don't know. there's nothing in the report that refers either to his tax returns or his personal financial dealings. but that doesn't necessarily mean the prosecutors didn't see it. i don't know. >> i asked the question, dana, because the house judiciary committee wants the full unredacted report, they want all the underlying evidence. and if there are tax returns in that underlying evidence, that's what they'd like to see. >> exactly right. and that's separate from the ways and means committee which has a law on the books or a ruling that gives them the green light to ask spes ofcalcificall the president's tax returns. the president's legal team, many people i talked to, they thought it was likely that mueller had seen the president

this is a deutsche bank concern.ting last week that they need a plan b if this is not happen. there are planning on raising value as a way to allow deutsche's to access the capital it may wire to satisfy regulators. this is more about deutsche's then it is big banks in general. matt: we heard about the plan b for deutsche bank, owned what you think about the plan b for commerzbank -- i wonder what you think about the plan b for commerzbank. does it make sense? does it make sense for someone from the bank from italy or france to try and make the acquisition work? basis, theategic commerzbank franchise being so it is one many lenders in europe with like to have in its portfolio. whether it is a french bank or ing put its hat in the ring, i'm sure there will be considerations. clearly, there will also be political considerations. i do not think necessarily that the government having tried to find their own solution, would be willing to throw commerzbank to another. there is going to be as many political considerations.

deep in the article is the idea that european deutsche bank told new york deutsche bank what to do. midst of watching the european banks and deutsche bank, do they tell new york deutsche bank what to do? steven: i think when you look at deutsche bank, and i imagine with any global organization but particularly deutsche bank, there is always a question of who is in charge. it is new york that is more in charge than frankfurt in terms of compliance with people who were like elated who were not were notegulated who able to talk to regulatory issues anyway. deutsche bank has always been a wide conglomeration of different centers of power and that has always been a problem when you talk about compliance and do not have oversight. tom: thank you so much. we will get that story out again on twitter, just extraordinary. radio up, on bloomberg later. this is bloomberg. ♪ the biggest week in television is almost here. xfinity watchathon week. starting april 8th, enjoy free access to the best shows and movies from hbo, showtime, epix and more. what! whether it's more jaw droppers, standing o's

deutsche bank is cooperating. looking for? >> any indications that deutsche bank inappropriately helped donald trump out of financial difficulties before he became president. and anything that may lead to questionable behavior in the campaign of 2016. nejra: how will this play out politically in terms of 2020? -- >> eric trump blasted the committee for what he said was a political witch hunt. going to play is out. the democrats have to make sure not to overplay their hand. they said they were going to investigate the president and his financial dealings. having the optics of not governing and only investigating. and that could help donald trump in 2020. marty, we are counting ahead to the publication of the redacted special counsel report. how could that have any bearing? >> it will be interesting to see if robert mueller had any information in his report. there was speculation he had those records already and if that connects to the findings. he did not find anything illegal. indictments, but it could still raise

merger with deutsche bank calls problems -- deutsche bank cause problems?an see there's a lot of blowback already in case it causes job cuts. david: bob, we talked to you about financials. do a compare and contrast with europe. how much of this is a bigger symptom with european problems as compared to the u.s. -- iner: in 2000 2008 and 2010, they loved it. that never happened in europe, and these problems just continue. alix: just look at this chart. bloomberge inside the , this is as soon as the financial crisis. .his is jp then unicredit is the white line, georgia credit is the blue line. much of this is the ecb' fault. guest: it is europe. it has been horrible. there's no growth. there's no lending. the ecb has been forced into that corner, and i come back to -- to the balance sheets. alix: bob is really passionate about that. [laughter] a $1 billion,come and not all of it, but a fair amount of the problem, will be be that. they are essentially saying we got to go back to basics and really make sure we are strong in japan. are reporting has been showing

jason: how to help germany's biggest bank, deutsche bank. editor joel weber joins us now.arol: why focus on germany now? >> one reason is that brexit has taken up a lot of care when we talk about europe. we know brexit has been kicked down the road until october. germany is the biggest economy, and we are starting to see three elements, one is the economic story has gotten tepid. another is the political story. ms. merkel is the most powerful real political figure europe has, and there is a succession story. the third is the banking story, deutsche bank being a once upon a time bank of germany, and became an international bank. now it is grappling with the -- what size it is supposed to be. jason: wide-ranging implications in germany and the global financial system. ed robinson brought us more. >> these banks are the twin pillars of the commercial banking system in germany, so they are vital institutions. they are also weak institutions, both banks have struggled to generate revenue growth, profitability, to show the kind of strength and resilience a lot of european banks

with deutsche bank, it's much more targeted. what they're after and they intend to get it. >> fascinating. congrats to you and emily on a big story here. thanks for jumping on the phone with "the beat." >> my pleasure. >> my thanks to maya wiley playing with us on several topics. appreciate your expertise. >>> coming up, we have some more politics. this is interesting. speaker pelosi weighing in on aoc. she says she's wonderful, but has a message for democrats flirting with socialism. drawing a line. next. cialism. drawing a line next ♪ memories. what we deliver by delivering. with peak season berries, uniqcreamy avocado. and a dressing fit for a goddess. come taste what a salad should be. and with panera catering, there's more to go around. panera. food as it should be. oh no. your new boss seems cool, but she might not be sweatpants cool. not quite ready to face the day? that's why we're here with free hot breakfast. book at hampton.com for our price match guarantee. hampton by hilton. little things can be a big deal. that's w

deutsche bank decided we are going to pounce.e are going to grab all the business that our rivals said becomeshed and we will europe's answer to goldman sachs. we will be an investment bank. that was the decision, the chance they took in 2012 and these years later they are left in a situation where they have restructuring and reorganizing of this is something they should have done six years ago. did they get it wrong because the market did not come to them like they thought it would? is that an economic problem in europe? is it mismanagement? where did it take a left turn? edward: it is all of the above. what you have is a situation of disorganized,s fragmented in terms of organization. it is a bank but did not know what was going on in far-flung units. that led to legal scandals. that his confidence. the shares get pounded. that is one problem. you have ar side, weak european economy. remember interest rates went to zero. that is bad news for a bank that depends on interest income to bolster its revenue. it did not get help on t

i mean what would be the best to deal with deutsche would unicredit be a good partner for commits. and this new is with the credit came out there is actually shot up more than five more than five percent before a trading opened here today and there's still trading higher at the moment. so this shows you that there is some excitement here on the news and analysts are also saying that it wouldn't be the worst idea either unicredit already has a big footprint in germany it owns a hippo for ryan's bank this is a bank that is a very strong in the south of germany at the which is of course has which of course has a lot of industry now european banking officials wanting more consolidation in the sector might look a more favorably across the border deal instead of just the german one but again germany is widely thought to have a push this deal between deutsche bank and mail its bank it might not want to see to it one of its two a biggest lenders fall into the hands and political resistance would then be expected. reporting from the frankfurt stock exchange thank you so much. german luxury

deutsche banc has traditionally been an investment bank. they are internationally geared.e bank is a germany focused bank, especially when it comes to the companies the culture is is it going to work in the first place? it's a big question. think about how much that goes even further if you think about a commerze bank uni-credit tie-up >> italian, germans? i don't know >> it's tricky >> coming back to your point about getting the employees on board from a commerze bank side. part of the rationale for bringing these two banks together is obviously the synergy potential that has to involve job cuts to some degree. if it requires some conditionality around retaining staff to get the deal over the line for employees, you have to question how much that eats into the synergy potential of this deal >> in terms of the tie-up more broadly and the potential success of this tie-up, i think earlier we were discussing commerze bank's history in the m&a space from the deutsche side of things. >> they integrated it pretty well, and they didn't seem to be that much opposition when it came

by hiding everything, and even now his personal attorneys are suing deutsche bank. you have to say, what is the congress going to do? they have to protect the country. not only from this president but from what this whole thing sets in terms of precedents for the future. how the president can delay and distract and move away from our constitution. it is dangerous. >> all right. thank you, guys, for joining me. i want to talk about venezuela. massive upheaval in venezuela today asle have been following. protesters taking to the streets in an attempt to oust nicolas maduro. the interim president was elected back in january. now moments ago, lester holt talking to secretary of state mike pompeo. watch this. >> have you or anyone in the administration spoken to mr. guido? we've continually spoken with him all throughout this. you see he is in the streets and we're not seeing him since this morning the russians told him to stay. >> you can catch the full interview on "nightly news" tonight at 6:30 p.m. eastern. coming up, the most powerful democrats in washington hit bac

another angle to the deutsche story.will be closely watching. >> well, coming up on the show, investors hit the road after japanese carmaker nissan hits the brakes on its profit outlook. we'll cross live to tokyo for the latest what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov. yand you want to getr an excellent price you'd think with all these options it would be easy. but with terms like msrp, invoice, list price, things get confusing pretty fast. you just want to get a real price and that's where true car comes in. only with true car can you see what other people paid for the car you want and you can connect with certified dealers who offer prices based on this same information. none of those other sites do that. from end to end, true car is your only one stop solution. there's brushing...and there's oral-b power brushing. oral-b just cleans better. even my hygienist said goin

deutsche bank is a very international bank.dtition threat create, i do not think that would be very big. it is another concern for the bank. a stronger rival in the home market is a problem. guy: it has been a busy week. steven arons joining us out of frankfurt on deutsche bank. spain, elections will be held this sunday for the fourth time in four years. joining us from madrid is bloomberg news spain's bureau chief. charles, who is the frontrunner and you might jump ahead this weekend? answer ishe simple the frontrunner is the incumbent socialist prime minister. he has built up plenty of momentum going into this final week of campaigning. the opinion polls we saw before the blackout on the publication of polls on tuesday were showing -- clearly is the frontrunner going into this process. he has been able to reach out skillfully to voters to his left and to his right with a message ,bout scaling back austerity pulling back the crisis years spain had in an early part of the decade, and stressed the need for dialogue over the issu

on tax returns, with deutsche bank. there is some unprecedented opacity with his financial situation, ooze where he's getting his money from, and it should be considered intolerable. there is a reason why this has never been allowed to happen in this country before. >> i want to ask you something that we've talked about here. we try to be very careful. part of what you exposed already, from your own primary reporting, that even the bank knew better and had reason not to go forward. that looks bad. then there's stuff we don't know. we don't know, as i understand it, what has happened to the debt that deutsche bank holds against donald trump, correct? in your reporting and given the congressional oversight issues, having this much debt. is it possible? is there a concern that some other actor, entity or government connected entity would try to buy up this debt to have leverage over the sitting president? >> i wouldn't say concern. i think there's curiosity. i think it is part of what congress is looking to understand bett

well ben i don't think so unless something really damning comes out of these documents that deutsche is going to eventually summit or not summit but having said that the share prices of deutsche bank have already factored in most of the shady deals that bank that the bank has done over the past i mean a decade or more so the shares as you mentioned have taken a beating they are down ninety three percent from the highs seen in two thousand to the companies valued at just a quarter of the book value i mean that that compares really unfavorably with most of his competition which are much higher value than banks so clearly i don't see it going any further below but then you never know what comes out next for the bank exactly all we know is that it's fighting an up hill battle and it's got a long way to go to talk on the interest in frank but thank you very much. now what you are wearing right now may end up one day in india for decades a town ninety kilometers away from delhi has made its living from the clothes the rest of the world throws away at the community has also attracted the at

deutsche bank, another story with the m&a.u start to get the bank earnings, i think that could be quite important. vonnie: what are the companies you will be looking to to get a read on brexit and how those negotiations and lack of decision-making are impacting companies decisions when earning season starts in britain? >> we do not want to talk about , but brexitoo much -- not even the biggest banks, we can to look at the smaller banks, the once more exposed. , which at lloyds bank are much smaller than hsbc and barclays. also the homebuilders have been badly hurt by brexit because economic slowdown hurting the u.k. housing sector. those are the sectors, financials in real estate, we look at for gauges on how brexit is being taken by the market. vonnie: wonderful. that is bloomberg's joe easton from our london studio. now to a bloomberg exclusive. our colleague talks with the saudi energy minister today. here's what he had to say about saudi aramco's make a bond sale. >> the roadshow is ongoing. i think the deal would close on

what do democrats want deutsche bank to give them now?ng for documents on the relationship with trump for a long time. we know that deutsche bank, before trump became president, was the primary lender for him as a real estate developer. they still have about $300 million in outstanding loans to him. they haven't extended the new loans democrats obviously want to use this to find out what is going on. they are presumably hoping to find some traces of russian meddling. >> deutsche bank says it is cooperating, right? we have heard this described as a friendly subpoena. is this a problem for the bank? >> i'm not so sure. they actually wanted to cooperate for a long time but given the constraints on talking about the client relationship, especially one as important as this one, they were never able to. now that they have been served a subpoena it is a legal requirement for them to hand over the documents so i think for them it is a relief -- they want to put this behind them and get the documents out there to the house and then wash their hand

it is still the same as deutsche bank in a lot of ways.y have not convinced anybody yet that they will turn it around. caroline: coming up, pinterest is going public, but did the virtual corkboard wait too long to go to market? this is bloomberg. ♪ caroline: time for a look at what stories are trending. user -- users were reading about a strategist at jp morgan who said that equity investors have been worried about the wrong yield curve. the investor advised looking at the spread between the 10 and the two-year instead of looking at the inverted three-month treasury yield. bloomberg.com has a story on elon musk, who may have overstated his twitter restraint. muska told a federal judge that he was dramatically reducing his tesla tweets, but has sent more in march than going all the way back to june. and, tictoc on twitter has reported that a new study finds that a bad diet is much deadlier than smoking tobacco. poorllion people died by a diet in 2017 based on low conduction -- low consumption of grains and fruit and high quantities of sodiu

that takes a look at what would happen if you revenues tozbank deutsche bank. the white line is deutsche bank's revenues, they have come off their peak as of late. the blue line, adding commerzbank, it would not get deutsche bank to peak levels that we have seen in the past. jason: this is why there are skeptics on this deal. also use the terminal to check out the latest headlines, because this is a fast-moving story. up next, bmw's painful push to embrace electric engines. carol: the woman who may be germany's next chancellor as long as she steps out of angela merkel's shadow. jason: this is "bloomberg businessweek." ♪ carol: welcome back to "bloomberg businessweek." jason: join carol and me on radio, and catch up on our podcast, subscribe at itunes, soundcloud. carol: you can find us online. in a special section on germany, "bloomberg businessweek" introduces us to angela merkel's handpicked successor. kk has been working to shed her image as a merkel disciple. is coming in after angela merkel who has been in office, her fourth term now. she has become the de

management' asset 'sen looking at deutsche asset group.er deutsche bank story i want to look at is that compliance officers in florida at a pretty low level flag some bag believe your -- some bad behavior at deutsche bank, and nothing was done. does this kind of lack of oversight continue, or do we ever come to an end? yalman: it is a big problem with deutsche bank because they keep running afoul of regulations and monitoring of risk around the world, and the u.s., and europe. d because ofide their connections to danske bank in germany. a tax evasion related case. there is just one after another. i think the biggest problem is they have been trying to restructure. they came to that much later than everyone else. their job cuts started much later than all their other peers. while their eyes are on this restructuring thing, the management is probably failing to see the other parts of the business which are very crucial, regulatory compliance. it has become a top priority for the biggest banks because they have really been under scrutiny sinc

president to investigators and plans to continue doing so deutsche bank said it would have by by all court orders related to the probe. yes carthage joins us now from new york and it's good to see you now deutsche bank has agreed to cooperate with the investigation but can touch a lawsuit actually stop it from handing over the chumps the trunk family's financial records. it's not so much about the lawsuits itself a dodge a bank is sort of caught in the middle of a legal power struggle because that is the big question if in general this congressional committee has the authority to actually force a banker to hand over those information as far as i understand about may sixth bank was ready to give at least them some details and now the trump organization and the president himself and his family are trying to block this so a dodger bank overall i don't see it having such a tough time of getting any problems with this case they're basically just waiting and seeing what the legal basis is and the fact that deutsche bank was pretty much the house bank of donald trump was basically because m

that's when deutsche bank is scheduled to report earnings.to "the wall street journal," the two sides are said to be far from an agreement. the banks have been bogged down over issues including lack of investor support and union opposition. we are moments away from our interview with the ceo of ubs. that is bloomberg. ♪ -- that is next. this is bloomberg. ♪ >> this is "bloomberg daybreak: europe." the dollar very much in focus because we have seen it had a four-month high, mainly driven by the strength yesterday. today, we are holding on to that. dropped tothe euro an almost two-year low. course, we have heard from the boj today as a decision comes in but heartening its pledge to keep interest rates also lit -- ultra low into 2020. the yen rising with holidays looming. 10-year bund yields back into negative territory. we see global bond heels drop yesterday. the treasury yields also moving lower. we have had various signals around the world of central-bank dovishness. australia and canada pulling back on hawkish buys as well. and oil steady a

see the battle for default, the winner goes to deutsche bank. right now deutsche bank is the risk is when you look at the cdf. we will track to story throughout the day. financial -- financial times is saying unicredit is waiting in the wings if commerzbank and deutsche bank cannot come to an agreement. ifus: it will be interesting you look at the possibilities for cross-border moves, this would be perhaps one of the most significant. great reporting there on the ft story on unicredit waiting in the wings. juliette saly has the latest from singapore. juliette: a little bit of a path after asian stocks hit six-month highs. they been on quite a bit of a rally, but today some weakness led by the hang seng. australia also had a week session but we had quite a big rally in response to that budget announcement on tuesday. a bit of a pullback coming through there. a flat day in india ahead of the r.b.i. rate decision. we are expecting to see .15% cut , but the consensus is what is the governor going to say, is the r.b.i. going to get even more dovish t

president donald trump tells deutsche bank not to hand over his financial records in an attempt to block the congressional subpoena. also on the show investors though just an earnings report from apple i phone sales are down but services are up. and billionaires playground monaco want to go green and not just from all that money. until now the law in berlin while the leader of the world's most powerful country is suing germany's flagship lender donald trump hopes a lawsuit will stop the torture bank from handing over his business records to congress democrat what democrat led committees subpoenaed the documents last month betting that if the president has financial skeletons the german bank knows where the bird. the lawsuit is the trump family affair with the president's three eldest children also following suit against torture bank. germany's leading financial institution provided massive loans to the trump organization when other banks were put off by the president's multiple bankruptcies. the congressional committees are interested in where the door to a bank was expecting something i

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

we caught up with the deutsche bank cfo earlier today. this is bloomberg. ♪ andy: deutsche bank commerzbank are ending talks for a potential merger but that does not mean it is out of the question down the road. bloomberg spoke to the deutsche bank cfo earlier today. in overtimeo industry consolidation will take lace in europe and that deutsche bank wants to be a part of that. the timing and the specific form of that remains to be seen. we have talked a lot about doing our homework to continue executing on our plans, executing on the restructuring of the company, improvement on our shareholder returns. shery: joining us for the latest on this story is our own reporter. how much of a surprise that it was called off? >> never lots of problems associated with the merger. as talks intensified, more problems came to the fore. tons of job cuts, labor unions upset about them, restructuring. the question now is what is next for the firms. amanda: and what is the answer to that? we got the indication that the door is not close forever, things may

deutsche bank's investment bank has been troubled for quite some time. last year, we have heard a cost-cutting story from deutsche bank, but investors are going to want to hear how the .evenue story is >> of course, we have seen european banks falling far behind wall street. >> it's funny you say this also because u.s. banks are also expanding pretty aggressively into europe as well and in light of brexit and whatnot and all these changes in germany, it is interesting to note that morgan stanley, bank of america have all been increasing their presences. as european banks have been struggling, at the same time, you see the u.s. growing and also getting a little bit lighter on regulation here, .iving them even more headwinds >> thanks for that. gets china's president ready to sell a revamped version of his signature infrastructure plan to global skeptics. we speak to an eu vice president. this is bloomberg. ♪ i'm all allen in sydney. shery ahn: you are watching daybreak australia." chinese president xi jinping will defend his flagship infrastructure projec

let's get back to the drawing board for deutsche bank.ermany's biggest lenders scrapped plans yesterday for a takeover of commerzbank. today, it cut its revenue target as well. a sign that something needs to be done to revive the beleaguered institution. if you were a shareholder, you knew that already. joining me now is the chairman of the finance committee. she has argued a merger would not solve the problems in germany's banking sector. maybe this is the good outcome. really one of not job losses or one of shareholder losses, but one of needing an engine for the german economy. i asked yesterday whether they would continue lending and whether growth would continue. isn't that the most important issue for deutsche bank? >> of course it is. it is always the crucial issue. especially -- my understanding is they will continue to do that. if this is what they are looking at, i fully agree, problems are not solved. the political pressure was very high. anna: let me ask you about the future for commerzbank. you previously talked about how you

deutsche bank has to explain how it will increase capital to get the deal done.on't think qatar will be enough. the government is likely to be a part of this new bank so taxpayer money is at risk, too big to fail is at risk. -- it willnk we will mean less competition and from a business perspective, five to 10 years to get this integration done. synergies are too old by then and i.t. is too old by then. matt: at least five to 10 years. deutsche bank has been integrating postbank for a decade and that is nothing compared to a commerzbank purchase. qatar owns 5%, the government owns 50% of commerzbank. would form aa this national champion and meanwhile, germany is supposed to be behind integration of the european union. why wouldn't they push for more cross-border deals rather than creating these big strong national champions? danyal: that is an interesting point you make because macron is still waiting for an answer from germany. what is our vision on how to develop the european union from a financials perspective? i think the top job of the minister of treasury a

>> and deutsche bank is not just any old bank. >> right. >> deutsche bank has been fined repeatedly for laundering, including money laundering in connection with russia. when i wrote a profile of adam schiff after he became intelligence committee chairman, the first thing he said he was going to do was subpoena deutsche bank to see what the relationship was financially between the president and russia. if that could be determined through the deutsche bank records. now he's doing it and we will see what the record says. >> and this does go into the larger question, as jeffrey points out, of the trump organization and whether it was involved in laundering money from the russians and whether the bank was a part of that. >> deutsche bank issued a statement, i will read it to our viewers, deutsche bank is engaged in a productive dialogue with the house financial services and committees and we remain committed to providing appropriate information to all authorized if you have questions concerning the investigative actiblts of the committees we would refer you to the committees themselves. >>

deutsche bank arguably could be in that connection. on deutsche bank from a different angle. there asset management division is said to be looking at potential other mergers. needs to find a way of streamlining its business and potentially raising a little bit of money. steven arons joins us from frankfurt after breaking the story. walk us through the details of what we know about how these talks are ongoing at the moment. steven: it is an interesting situation, obviously. we have the merger talks at a level between deutsche bank and commerzbank, another german bank, and a subsidiary, dws, now in exploratory talks with other asset management about teaming up. , but unlikely to be a sale each bit of deutsche bank seems to have its own little plan to grow, and dws certainly needs to grow to scale business, and i think that is where we are at now. vonnie: so what happens next, steven? steven: the ws is in talks. it is -- dws is in talks. it is unlikely they will make a decision on this before the commerzbank deal is decided. they will mak

banks, but deutsche bank also in a category all its own. rachel: it's had an awful lot of headline risk over the last few years. it's really struggled to break through from that. if you look at the performance of financials, last year was pretty terrible for european financials. this year they have been more on the same pace, but this news of merger talks breaking down can only be a negative. but i would be looking for going forward is what happens with dws group, the asset management business that deutsche bank spun out a couple of years ago. they are looking to see if they can get merger talks going about being part of this asset management consolidation. it seems like ubs might be interested. it will be interesting to see. it shows you how much scale as needed to be a success in asset management and banking today. david: is it also a systemic story? if a prominent bank were having this here, the fed would be worried about the systemic story. michael: we are talking about a bank that is not profitable, but they are not in any particular t