on deutsche bank and the final headlines from deutsche bank.ing now, growth assumptions in plan are conservative. we will have to see more on it. we have more coming up. we will do that in the next hour. stay with us. this is bloomberg. ♪ tom: "bloomberg surveillance." not too distant from the wall in london. we have headlines continuing to stream out. we will keep you updated on deutsche bank this morning. the other great story over the weekend, ubs had their fundamental -- head of fundamental strategy, was morgan stanley aggressively reaffirmed their cell call on equities? we are pleased to bring you the morgan stanley chief asset strategist who was knee-deep in the story over the weekend. you have been cautious. how do you get from cautious to a cell on global equities? -- sell on global equities? to put it is time for us our money where our mouth is. really across global equity markets. if i look at how much morgan stanley is expecting equity markets to make over the next 12 months, it is one of the lowest levels of the last five years. it

what was deutsche bank's exit actually mean? -- what will deutsche bank exit actually mean? morning, everyone, welcome to "bloomberg surveillance," good afternoon from asia. i'm francine lacqua in london. stoxx 600 down. we are expecting more choppy trading on the back of the testimony this week from jay powell. prospects after we had conflicting signals from the world economy. 1.12.ollar coming up, paul the fx calls -- all the fx calls with david bloom. tensions between japan and south korea are threatening to wallop much now depends on whether shinzo abe and moon jae-in can work out a compromise. >> a cycle of measures and countermeasures would not be ideal for both countries but if south korean companies begin experiencing actual damage, the government would have no choice but to respond as necessary. i hope it does not come to that and we urge japan to withdraw its measures. greece primenew minister has a new finance minister. one of the first tasks will be to renegotiate. epstein being held at a correctional center in new york as he awaits a bail hearing on charges of s

why are deutsche bank doing this? a really spectacular reversal of a very ambitious and aggressive strategy. it started in 1999 when they bought the us investment bank bankers trust and were determined to go head—to—head with the wall street giants. for about a decade it looked like it was working and then came the crash and in 2008, whereas the american investment banks cut back very quickly, the government forced them to do it, deutsche bank was too slow, too little, too late, and for the last several years they have been lingering on, dying a rather painful death, paying the consequence for not accepting tough medicine in the deep days of the crisis. so is it as simple as that? they didn't react in the correct way after the crash? that's the fact of it. it is never a simple issue. the wall street investment banks have a vice —like grip on the whole business of securities trading. trying to break into them is a really tough challenge. i wouldn't be hypercritical of the deutsche management, it was just simply in the

high-level departure at deutsche bank. the head of the firm's investment arm marks the first official casualty of the major overhaul at germany's largest lender. we want to get a quick check on the major averages. very strongf a payrolls report this morning. that is bad news for the equity markets as we digest if the fed start to move at all. we are recovering off the lows of the session. this morning we woke up and we were off anywhere from .6% to 1% across the major averages. tech in particular recovering those losses. if we fall that over into our bond conversation, priced lower, yields higher. my eye is on the 10 year which is up nine basis points. a list of yields all across the 10ve, and that means the year moving from an inverted to 18. that is good news for the federal reserve. speaking of, come into my terminal. it's all about the outlook for jay powell and what this means. the is the number of cuts market is pricing in for 2019. in june, we are looking at a solid three cuts. today, clearly reversing some of those

. ♪ anna: deutsche bank's equity exits.he german linda revealed plans to shed 18,000 jobs by 2022. cfo says growth will come from a new unit. be theorate banking will greatest growth driver in the franchise as we see it going forward. anna: erdogan derails the rally. the turkish president fires central bank governor, sending the currency 3.5% lower. plus, new democracy prevails. the snap election in greece turn around he will the financial crisis. >> i will deliver on my agenda, an agenda to grow the economy, to create more jobs, but also to make sure the greek people feel safe again. anna: welcome to the market open program this monday morning, less than a half-hour to the start of equity trading. let's look at the features. the good news is bad news mantra is dominating. the end of the rally in everything, ftse futures, tax lookses, and cac futures like it will be weaker in trade. we got the jobs report. stocks stateside and europe falling on that, building in lower expectations for fed rate cuts. that's the big picture s

coming up, more on deutsche bank's radical overhaul. this is bloomberg. ♪ viviana: this is "bloomberg daybreak." the saudi arabian budget airline begin the first carrier to officially drop in order for boeing's troubled 737 max 8. it reversed in order to buy as many as 50 of the jet. it will now fly only airbus planes. in march, the plane wasn't grounded -- was grounded after two fatal crashes. broadcom secured funding for its acquisition of financi -- of finance tech. to china now, where the venture capital bloom shows signs of turning into a bust. the value of deals there plunged 75% in the second quarter. the venture boom began in 2014, when alibaba went public in the largest ever ipo. that year, chinese venture deals tripled. that is your bloomberg business flash. alix: thank you so much. the banking bombshell. deutsche bank will undergo one of the most radical overhauls since the financial crisis in its latest turnaround plan. , andll cut 18,000 jobs quit its equity sales and trading business. >> we are taking the decision to retre

, will be leaving deutsche bank.ortive of him in the last general meeting of shareholders. the speculation that he might be leaving is now being confirmed by deutsche bank. . not a big surprise. indeed. anna: -- anna: indeed. to put this in context of the big news over deutsche bank the last 24 hours, we are expecting this to be a big weekend for deutsche bank. ceo christian sewing probably pulling the plug to some extent on their u.s. dreams. garth ritchie was copresident and head of corporate investment banking. we will be looking at other names to be joining that list. david: this is speculation now, which we should avoid, but if they are cutting back substantially on investment banking this weekend, the question is what would be left for garth ritchie to do. he's a very big figure, a very executive,nking and he is not going to want to preside over a skeleton crew. anna: just how skeletal it becomes is the question over the weekend. investment bank head garth ritchie to leave deutsche bank. christian sewing, ceo,

epstein was deutsche bank.bank, i would say probably deutsche. that seems to be their clientele. the fact they took him out as a client, keep in mind, he was looking for a bank because jpmorganchase wouldn't be business with him. the fact that deutsche took him on said something and they ignored the suspicious activity. >> the positive element is when you read the story, it's very clear that this story is coming from people inside the bank who don't like this aspect of their own bank's business. >> no. this is what happened. the banking compliance folks do their job. these are hardworking americans who are carefully dratrained. they tried to raise the concerns. what happened? the upper crust people at the bank decided it was worth it to them to take on this business, to do business with any rich person whether he was involved in lawful activity or really unlawful and immoral activity like mr. epstein. i think this should hearten us there are people trying to follow the laws. we should ask why are those people n

deutsche bank initially rallied around 5% this morning. this afternoon has really completely turned around. the stock is now trading down by nearly 6%. this was not the reaction, i suspect, that those in deutsche bank were really looking for today. this is not been a huge vote of confidence in the restructuring plan deutsche bank has put out. however, more of a vote of confidence in the new greek government. ,reek bonds continue to rally falling by another six basis points. that's get back to that big story on what is happening within the banking sector. --tsche bank glow very deutsche bank delivering its biggest turnaround effort yet. it will exit its equities business and take a restructuring charge of 7.4 billion euros. 3 billion of it will be in the second quarter. here to discuss all of this is bloomberg opinion's marcus ashworth. what do you make of the market reaction this afternoon? initially the stock popped. now it is dropping pretty hard. marcus: i think most analysts have worked out that there is nothing fundamentally changed t

deutsche bank's execution risk. meetssink as wall street skepticism and doubt about its profitability goals. welcome to "bloomberg daybreak" on this tuesday, july 9. david westin is off. the white house, things aren't going as smoothly as downing street in london. --sident trump firing back the dinner included the memos,nt and -- in the they called the president inept. the president accusing prime minister theresa may of making a mess of brexit. he said the u.k. will have a new prime minister soon, good news. in the markets, we are seeing risk off attitude. you want to buy the dollar. equity futures down .4%. semis could get particularly hard. the chip guys have three months of inventory stacked up. yields going nowhere in the u.s. oil a bit firmer. you have some iran conflict there, the military playing hardball with bp. altogether, it is a by dollar story, sell u.s. equities -- buy dollar story, sell u.s. equities. we are joined by lisa abramowicz and michael mckee. 72 hours, has a busy giving a speech to open thi

deutsche bank in the crosshairs. u.s. investigators probe and involvement with malaysia. welcome to "bloomberg surveillance." good morning. good afternoon if you are watching in asia. i am francine lacqua. these are your markets. a cheer across the market for a dovish tilt for central banks. we heard from jay powell. we will hear from him again today. the euro-dollar, 1.1278. there is a lot going on, not only about trade. official taxes that france will vote on. there is a mood on what happened to euro depending on what we get from the ecb minutes that will be released after midday. we will watch for that and any movement on currency. coming up, we speak with the sao paulo governor, he is joao doria . plus we will speak to sheriff brown about u.s. politics. let's get to the work first word news. >> deutsche bank is now being probed u.s. justice department as an expanded investigation. the u.s. is reportedly taking a closer look at a former goldman sachs executive who later worked at the german bank. authorities haven't ac

deutsche bank down.ing through this sweeping mass restructuring plan basically in their history. matt: i have not had a chance to watch "love island." i will give it a shot on netflix if it comes to it. thanks very much for that. european central bank policymakers have plenty of reasons to postpone the stimulus decision to september. andfed's decision next week pending euro area economic data could justify a gradual approach by the ecb. traders are currently pricing a 30% chance of a 10 basis point cut in the deposit rate. joining us now is valentin marinov, head of g10 fx research and strategy at credit agricole. what do you expect from the ecb meeting in frankfurt tomorrow? valentin: we certainly do not expect a cut tomorrow. we think that president draghi will prepare the ground for more easing to come in september in the shape and form of a 10 basis point rate cut, plus an extension of the central bank's qe program. i guess tomorrow's meeting will be important, if nine star mental, and getting the ma

in frankfurt, germany, a major developing story, deutsche bank announcing massive job cuts as it rollsut an $8.3 billion restructuring plan we are live at the bank's headquarters that's coming straight ahead >>> futures under pressure as investors gear up for a new trading week we'll find out why >>> and more investment, lower taxes, greek conservatives making some big promises following a landslide victory. we are there live in athens. >>> the ipo rush back in high gear what they just did that's getting a lot of buzz today. >>> then, watch out verizon. why silicon valley may be asking, can you hear me now? we'll explain. it is monday, july 8th "worldwide exchange" begins right now. ♪ >>> good morning and welcome to "worldwide exchange" i'm dominic chu. brian sullivan has the day off futures right now are lower, but they're off the worst levels of the session. we'll have more on that coming up but first, to our top story this morning. one of the world's largest banks announcing a massive overhaul. deutsche bank is pulling out of its globals equities in sales and trading business as par

deutsche bank swings the ax. the ceo's new plan reshapes the business and slashes thousands of jobs. >> obviously we have taken the decision to retrench and step back. >> i think the big issue is capital. it continues to be capital. >> turning around all of this while balancing cuts is something that continues to be a question mark. rosalind: the federal reserve also contemplates cuts. markets get a slew of clues to the right path. >> wall street believing we are going to get a rate cut. >> the big surprise would be if they did nothing. >> we have a lot of time left before the meeting. we will see what happens. rosalind: protesters keep pushing for concessions in hong kong. the u.k. parliament takes a stand against a no-deal brexit. >> parliament saying clearly we will not take kindly if you try and bypass us. rosalind: ibm and red hat seal one of the biggest tech deals ever. >> we will help extend their reach into 175 countries. rosalind: plus, kkr's henry mcvey says recession may be coming, but investors should

this is what deutsche bank is now. james: it will be the greatest growth driver in a franchise as we see it gone forward, especially in today's interest rate environment. that may change in the future, but for now, we see great growth opportunities that have existed for several years and we have not been able to participate as much as we should have applied have. we see growth -- we should have or could have. we see growth in the consumer banking franchise as well as for italy and spain. asset management has recovered after a difficult year in 2018 and is on a growth trajectory. we see underlying growth in our franchises. we are making the decision to step back from elements of our global markets franchise. in particular, trading. that is a significant step in reorganizing the bank. now is guying us johnson, who conducted that interview. good to see you this morning. the question is, the fifth attempt at turning the anchor around, is it going to work this time? guy: that is the big question everyone is trying to figure

the rating for deutsche bank?aurie: a strengthening operating environment and rates going up would definitely be a boost for the plan. are done onmates the basis that that does not happen. and a deutsche's would be able to achieve about a 7% return on tangible equity by 2022. so it is still below what they are trying to achieve at 8%. francine: fabulous, thanks so much. associate managing director at moody's and erik from unicredit stays with us. as trade talks resume, south korea's president warns a business leaders to dig in for an extended trade battle with japan. we talk trade. this is bloomberg. ♪ francine: this is "bloomberg: surveillance." the u.s. and china have held their first talks since president trump and xi jinping called a truce. top trade officials spoke on the phone. larry kudlow says the initial talks were positive. let's get to another front in the trade war. president moon has warned the country's top business leaders they may have to dig in for an extended trade battle after japan lifted expor

radical surgery for deutsche bank. a massive revamp of the german bank, closing its equity business, cutting a fifth of its workforce and scrapping its dividend. sees theays he still need for a lot of things to go right. powell in the line of fire. president trump keeps the pressure on the federal reserve to cut rates as markets price out more rate cuts this year. focus turns to powell's testimony before the house and senate this week. insight on how hedge funds are hedging geopolitical risk, that is later in the hour when rob christian. we are halfway into the monday trading session. taylor riggs is with us. seems to be tech shares. taylor: leading the losses off, the s&p 100, down to the lows of the session. i want to throw the 10-year up here as well. the largest move in terms of a one-day loss. we are not seeing any more moves off of that, hovering right in at about 2.03. if you come into my terminal, the story continues to be a low volume. volume in the s&p 500 still off 20%. consumer staples, communication seeing

first up, deutsche buck -- deutsche bank gets tangled in 1mdb probe.g how musk talks tesla. a top tesla investor says musk should change how he talks about the company in public. good luck with that. joining us now is sonali basak, bloomberg's investment banking reporter. i can't believe we are talking about deutsche bank again, but in a different way. sonali: who would have thought? what happened is the banker at goldman who pleaded guilty in regards to 1mdb guided authorities to one of his employees who moved over to deutsche bank. they are looking at whether deutsche bank violated any money laundering or foreign corruption laws in regards to fundraising for the malaysian fund. david: they haven't accused anybody, neither deutsche bank nor the former goldman employee. at the same time, this is not good news for any bank, but deutsche bank is going through so much turmoil. sonali: remember, deutsche bank has been in the spotlight of regulators including the federal reserve, looking at their bank in the -- looking at their role in the danske bank scand

deutsche bank planning to cut 20% of its workforce. 18,000 people.hutting down its equity sales and trading business. >> the losses are already starting. i suspect many of them will come in london and many will come in the united states as well. the focus is about refocusing this business back on the german side of what is happening to become a corporate bank, less of an investment bank. >> is that enough? what is the reaction? >> it is quite dramatic, 18,000 jobs, the biggest restructuring seen. the problem is there is a lot of risk and it is not only going to be a costly restructuring, finding enough revenue to offset that. they want to keep asset management and all of those areas are very competitive businesses. turning around all of this is something that is still a question mark. >> deutsche bank, tumbling in new york, 6.1%, 5.9% in the primary market. some investors are celebrating the move. 3% of the lender. >> what they are taking the bank back to is its history of being one of the world's best commercial banks. it is consistent and stable. a

>> deutsche bank is a special case.ly they are looking to dramatically transform their business. i'm looking at the likes of ubs. cutting one billion euros in costs in europe as a way to try to boost earnings. that is the example i talked about in terms of banks that are looking to reduce their cost as a way to get eps growth up. deutsche bank is looking to transform their business. it's not about trimming. nejra: will the transformation work? i'm asking the same question. because it is such a huge revamp , with everything you've said in terms of focusing on costs not being enough, the challenge remains. even though they are cutting the workforce, exiting the equities business, there will be no dividends this year. will that be enough to list the -- with the stock -- lift the stock? doesn't lie with management. it lies with mario draghi, the ecb and their stance going forward. will they deteriorate interest rates for deposits by european banks with the central bank? will they furthering gauge quantitative easing? these

you can see just how bad deutsche bank is doing.eekend, we will monitor what kind of job cuts we see. been out inberg has front with this reporting. we have yet to hear about restructuring from christian sewing. let's get a first word news with debra mao in hong kong. debra: thousands of spectators packed the mall to watch president trump's fourth of july speech. he praised the u.s. military and american people but put himself front and center of the independence day celebration. the event included tanks, flyovers by jets, and culminating in an extended fireworks display. president trump: we celebrate our history, people, and the heroes who proudly defend our flag. the brave men and women of the united states military. together, we are part of one of the greatest stories ever told. the story of america. debra: british special forces seized a supertanker off gibraltar carrying iranian oil to syria in violation of european and u.s. sanctions. iran declared it illegal, summoning the british ambassador to explain the action. madrid is c

there are about 8000 uk deutsche bank staff.here who are facing uncertainty there now. we have heard it's sort of a restart that the business, an opportunity to refocus on what deutsche bank does best. you can take that positive approach, absolutely, but at the same time, what is clear is that deutsche bank clearly had to do something. it was falling further and further behind in the investment banking business compared to some of the wall street banks like goldman sachs and jpmorgan. what is also clear as this retreat from the investment banking business is only going to help cement the dominance of those wall street banks. 0k, nina nanji, thank you very much indeed for joining nanji, thank you very much indeed forjoining us. greece's leftist prime minister, alexis tsipras, has conceded defeat in the country's snap general election. with the results still coming in, the centre—right opposition party, new democracy, is closing in on an absolute majority in parliament. mr tsipras's syriza party, seems to have paid the price, for

at one point deutsche bank shares were up 4%.her than 1.5 percentage points in the green up .1 percentage point. the picture across the board is pretty muted in contrast to the weaker session we had in asian markets overnight with some of the majors there trading lower to the tune of 1%. this after a stronger than expected u.s. payrolls print on friday that allowed some investors to pair back some of their expectations for how much the feds will cut at the end of july and their upcoming meeting. 100% probability of 25 basis point price is cut in and some people were hoping more. it had a negative impact on asian equities overnight you can see in europe the mood is little bit better but still we're trading around the flat line as well switching to foreign exchange, though to see what the picture is like there. and here you can see that euros trading again little firmer around 112.30 is where we're at. all eyes on what happens to the u.s. dollar. we'll have testimony from the fed chair powell later on this week some indication on w

what deutsche bank cousin said today is exactly where the axe will fall.y 2022 so there could be quite a spread out timeframe, but people have been expecting for the operations in the us, wall street and the city of london which are both quite heavy on investment banking could take quite a big hit but we haven't had that confirmed and we are expecting more details in the coming days. do we ta ke details in the coming days. do we take this as a symptom of wider problems in the banking sector as a whole or is this just deutsche bank failing to keep up with the competition? it is certainly a symptom of deutsche bank failing to keep up with the competition in investment banking. it really has struggled to compete with the big american giants which are dominant 110w american giants which are dominant now and some are seeing this as a sign that it is throwing in the towel with investment banking in a way. some analysts i spoke to don't necessarily think this is the answer to all deutsche bank's wider problems they say it might be too little too late but they als

is next the deutsche bank overhaul. this is bloomberg. ♪ live from bloomberg world headquarters in new york. taylor: i'm taylor riggs. joe: i'm joe weisenthal. caroline hyde is off. romaine: stocks down, gold slipping for a third straight day. overhaul, radical cutting jobs from sydney to london, new york. and stocksthe lira weaken after erdogan removes the head from the central bank. new greek government. the prime minister will have to move quickly to tap -- to tackle the problems. taylor: some breaking news. the democratic presidential pool is getting smaller today. eric swelled well -- eric out ofl has just dropped ool.democratic 2020 p the race getting a little bit smaller but still a very big amount. o.e: still a ways to g cuttingtsche bank 18,000 jobs worldwide as they reduce their equities division. deutsche bank chief financial officer talks about the company's retrenching. >> especially in today's interest rate environment, that may change in the future, but for now, we see great growth opportunities that have

deutsche bank trying to compete with its american rivals.t seems deutsche has succumbed to the realization they cannot in this money-losing exercise. it is finally drawing to a close. they have laid out 18,000 job losses. how much will they be able to follow through on? that has been a question in the past. it will remains to be seen. what people are reflecting on and saying is this it is a completely necessary operation. it is a sad day, but necessary if the bank wants to be profitable. it is gettingys leaner. it says it will focus more on european corporate clients. is there a possibility that could backfire? could backfire. it is necessary. they are focusing on the activities that are profitable. the european economy is not added strongest, but at some point it will be. repair the roof while the rain is still coming will provide longer-term benefits. we have more years of difficulties and challenges ahead. there are no guarantees with regard to this. it is focusing on the core business, the part of the business making its money. people ar

a complicated set of results out of deutsche today. they were impacted by some restructuring charges. can you break it down for us in more detail? >> yes they are already hugely impacted by the restructuring costs they're saying the net loss is bigger than previously expected because they're front loading part of those costs to the second half of the year. if you dig deeper and look at the revenue situation and the operating income situation in the individual units, that's the interesting part here it does look not really good let's start with the investment bank the investment bank is down when it comes to revenues quite substantially. equity and sales were down the most that's the area they're going to exit this was loss making and we have another item, origination and advisory down 30%. this doesn't bode well for the second quarter clearly that's an area the bank should make money with when it comes to the global transaction bank, this is not looking good either. the revenues are down by 6%. that's one core area they want to grow. i

wall street reacts as deutsche bank lays out an ambitious restructuring plan cutting thousands of positions and ditching its investment arm helped turn the bank around and what's the plan for the future we've got full coverage. and big game hunting has grown into a huge industry in south africa but it's increasingly under fire look at what operation and the money behind it. this is your business report i'm stephen beard thanks for joining us. bank shares tumbled more than 5 percent monday after the lender announced an ambitious restructuring plan worth $7400000000.00 euros at the cost of $18000.00 jobs as c.e.o. christian saving or close the banks struggling equities trading business and shrink other operations significantly. investment bankers were the 1st to go entire teams were given the sack on monday from sydney to london. and could concentrate hard on the sector for years but to no avail this year it's not showing up yet another round of losses for the 4th time in 5 years the restructuring measures announced on sunday are aimed at freeing up the remaining divisions of the bank it's tu

only will that be enough that will deutsche bank stick around. i think that your bank will stick around will it stick around under its own independent leadership that depends on the success of this radical restructuring it's always possible and some people think that it is likely to some point considering the low share price and the financing and the big balance sheet that might be taken over by someone but its role in financing both private customers in especially corporate customers like professor book of just pointed out yes it's lost some ground there but it still is number one in germany and it's needed for many companies so that role i think that your bank will continue to play in what corporate structure that we have to see depends on this program just briefly mr bush called and finally the banks no stranger to scandals that even lent donald trump money when no one else would actually one tweet i read this morning was that if trump repaid old alone. the lead it would have to cut any jobs at all. that's absolutely wrong i mean trump is not

wise deutsche bank in the crosshairs? -- why is deutsche bank in the crosshairs?> you do not want to be in this limelight. employeegoldman sachs went to work for deutsche bank, and he was involved in the matter. not beenbank has accused of wrongdoing at this stage. some of the findings of also say they were one, and they see a limited role here. publicitythe kind of the ceo wants at this stage. he said he put the bulk of the legal issues behind it. he has used the word stabilized, and so this reminder of the history is the last thing he wants at the moment. anna: what about these other new revelations surrounding epstein? what was the lender's connection with epstein? is one of the most interesting things. we do not know a lot about how epstein's finance, we know about his spending and visible assets like houses and cars, but we do not know about what is behind it. right, nothing with theh operating bank, but it is an unwelcome reminder of the clients deutsche bank has had. they came over flack with how they treated donald trump before he was president. it is a hi

deutsche bank swings the ax.he ceos new plants reshapes the business and slashes workers. >> we have taken the decision to retrench and step back. >> the big issue is capital. it continues to be capital. this whilearound all balancing cuts is something that continues to be a question mark. [inaudible] streetys here with wall are leaving we are going to get a rate cut. >> the big surprise would be if they did nothing. >> we have a lot of time left, we will see what happens. >> pushing for concessions in hong kong. the u.k. parliament takes a stand against in no deal brexit. >> parliament saying clearly we will not take kindly if you try to surpass us. >> ibm and red hat signed one of the biggest tech deals ever. >> we will extend their reach into 175 countries. >> an analyst says recession may be coming, but investors should not fear the worst. it is all straight ahead on bloomberg best. ♪ >> hello and welcome, i am rosalind chin and this is "bloomberg best," your weekly review of the most important business news,

nejra: bloomberg learns that deutsche's u.s. cuts will stretch far beyond equity and rate divisions. you investors get set for today's job number. and a slowdown at samsung. operating income plunges at the world's biggest mobile phone and chipmaker. welcome to "bloomberg: surveillance." thes get a check on markets, four days of gains for european equities. , bit of a down day to end though it does not seen anybody is taking a huge position ahead of that jobs data. we have stock and bond markets close in the u.s. yesterday as treasuries get going again. ,e saw a bit of a basis point holding at 1.95 on the 10 year yield. bund yields are just above that level. the euro is weaker am a down .2%, 1.1265 f disappointing german factory data. coming up, we speak to larry kudlow. let's get bloomberg first word news. thousands packing the national mall to watch president donald trump's fourth of july speech. he praised the u.s. military and american people, but also put himself front and center of the independence day celebration. the even

do you work for deutsche bank? i'm sorry, i can't talk to you.on's financial district. the company won't say how many of its staff here are at risk of losing theirjobs. it is likely to be a significant number. but the company does say that london will remain a major component of its international business. it affects not only london but also the us, asia and also germany. there is no concentration in one region. i can assure you that london, also from a size point of view, will remain a critical part of deutsche bank's future setup. so what went wrong? experts say the company was simply too ambitious and did not cut back fast enough when the financial crisis erupted. whereas the american investment banks cut back very quickly, their government. to do it, deutsche bank was really too slow, too little, too late. —— the american government. them to do it. they have been lingering on and dying of other painful deaths in the last views, paying the consequences for not accepting tough medicine in the deep days of the crisis. in the future, deutsche ban

joe: coming up, the trouble at deutsche bank deepens. fund giant that deutsche bank had counted as one of its clients has reportedly been pulling money from the bank for months. this is bloomberg. ♪ romaine: troubles are mounting at deutsche bank. renaissance technologies, the hedge fund giant that deutsche bank had counted as one of its largest clients, has been taking out money over the past few months. this as the investment banking head is said to depart, marking the first official casualty of an overhaul. here with more is bloomberg's ri. let's start with this renaissance technologies story. i assumed that rentech would be one of their most premier clients. the fact that they are pulling money seems to say a lot. >> if you are a giant hedge fund and you are seeing all the news coming out of deutsche bank, if you are not thinking about doing this, that would be a surprise. rentech is one of the largest clients for deutsche bank. prime brokerage falls within the equities division. it makes sense that they've been thinking about pullin

let's talk now about the deutsche bank story. christian sewing's plans for deutsche bank, the ceo says the company is going to return to its roots. it is going to exit its equity trading business to contribute to the bank's workforce being slashed by 1/5. the market reaction today, shares falling in frankfurt come the some analysts saying targets of the plan will be hard to achieve. the company cfo had .o say sonali basak joins us now. deutsche bank wants to return to its core, but getting there is going to be a difficult journey. sonali: even with the execution risk we are seeing here, the goal is i 2022, 8% return on tangible common equity. that is less than barclays and almost half of jp morgan. people haveplan, questions about how revenue is going to grow. costs are going to be exorbitant for a year. how are they going to compete with large global banks? vonnie: typically when someone undertakes massive restructuring like this, obviously there has been tinkering at deutsche bank, but typically the stock goes up, yet we still

they cast it into a modest 74000000000 euro silo deutsche is the latest bank to fail fall from grace after earlier this year 3 banks on 3 different continents failed indicating that there is a systemic problem and that a new global crisis could be brewing and with more of the latest details just to be publicized wind down or meltdown is international regular regulatory attorney miles edwards. so miles door to bank right now is arguably europe's biggest investment bank right up there with barclays banking analyst stephan wyler recently said this when we may be facing and the financial crisis in the next years i don't believe it but if it's coming it's not good for the banks generally the overall banking which means that a bank will force all kinds of products over the people usually have their private account somewhere brokerage somewhere still their real estate financing or other financing some of the business is going down substantially and if you have problems anyways it will be difficult to to do the right decisions in that sector. so now do you think this restructuring is a harbi

bank it's really too little too late with and as you know with deutsche bank since 2016 they've been suffering tremendous regulatory scrutiny in 2016 they paid. 40 while they paid 2012 point 6 mil 1000000000. all are fine along with credit suisse for basically selling toxic debt if you move forward to 2017 the federal reserve fund them $41000000000.00 for having an adequate and i money laundering procedures and then also in that same year they paid us regulators $220000000.00 to settle a case regarding the fact that it was alleged that they defrauded governmental and nonprofits by manipulating live bore and other interest rate benchmark so there's a real crisis of confidence in the market and investors are losing confidence and deutsche bank yeah it's a really remarkable story and you put some important context in there miles and now at this point as part of this restructuring effort they're creating a bad bank where they'll you know sort of scapegoat all of their bad bad assets and so that we've seen other banks try this notably citi group did this in 2009 but it has been seem to be

deutsche downsizing. why one of the world's biggest banks is slashing its workforce by 20%. all change! a new government in greece after a snap election, but what are the economic challenges facing incoming prime minister kyriakos mitsotakis? and on the markets asian stocks are lower as geopolitical concerns play on investors minds and trade tracks a negative end to last week on wall street asian stocks are lower and geopolitical uncertainty are playing on investors' mines. —— minds pulled on investors' mines. —— minds —— minds. thousands of staff at deutsche bank are worried about their jobs, after confirmation that up to 18,000 posts worldwide are to be cut over three years. it's part of a radical reorganisation of the german lender which is shrinking its investment banking business. it hasn't said where jobs will be lost, but with almost 8,000 staff, london is the home to its biggest trading operation. our business correspondent katy austin explains why the cuts are being made. 0nafairly long on a fairly long list of long—term problems, the german backhand bead we re prob

what was deutsche bank's exit actually mean? -- what will deutsche bank exit actually mean?welcome to "blooer

certainly for deutsche bank.get into some of the details, -- investors were not impressed, and they haven't been impressed for some time. >> i think this is why it has been so difficult now to gain investor enthusiasm for this. this is a bank that since the financial crisis has basically just drifted. tweaks around the edges, scaled back there, but tried to keep optionality, and it cost too much and was a drag on the overall growth. not only didn't it lose confidence of investors, but regulators were not comfortable either. the bank has been involved in a host of scandals from rate rigging, to laundering funds, and all of that added to a lack of credibility in the company to be about to thrive. carol: we are talking $18 billion in fines that deutsche bank has paid for numerous things that they have done wrong. what is interesting about the deutsche bank story is that it has been years in the making. correct? elisa: yes, absolutely. what happened is after the financial crisis there has been a secular shift in the

deutsche telekom controls t-mobile.ome bullets on that. >> again, deutsche tell, from what i understand, feels as though the goal posts were moved in terms of things already agreed on, in terms of the divestiture package and the various things going along with it, these sort of -- a limit to some extent in terms of how much the investment could be in this vehicle from an outside party and this capacity agreement in terms of how much they would actually have available to them. doj pushing hard a lot of questions here, we'll see whether they get there this week, last week my checks, they were hoping to, but i got to check again. >> shoot down the google. >> the google -- the new york post, we reported a lot of what i reported last week, added on that dish was talking to google, google tells us these claims are simply false, google is not having any conversations with dish about creating a wireless network. that's a google spokesperson telling that to cnbc so -- but as for the other things i related last week, they're all

certainly for deutsche bank.get into some of the details, that --investors were not impressed, and they haven't been impressed for some time. >> i think this is why it has gainso difficult now to investor enthusiasm for this. this is a bank that since the financial crisis has basically just drifted. tweaks around the edges, scale ere,ei but tried to keep optionality, and it cost too much and was a drag on the overall growth. not only didn't it lose confidence of investors, but regulators were not comfortable either. the bank has been involved in a host of scandals from rate rigging, to laundering funds, and all of that added to a lack of credibility in the company to be about to thrive. carol: we are talking $18 billion in fines that deutsche bank has paid for numerous things that they have done wrong. what is interesting about the deutsche bank story is that it has been years in the making. correct? alyssa: yes, absolutely. what happened is after the financial crisis there has been shift in the engine that once

deutsche bank is preparing for the large makeover in your.he german lender may reduce the debt count by more than a fifth. by up to 20,000 jobs. is likely to hit the investment banking division the hardest. global news 24 hours a day, on air and tictoc on twitter, i'm courtney donohoe. this is bloomberg. taylor? taylor: i want to get a check on the global markets, a little bit of a lift here given some of the trade boosts we saw over the weekend. along with the stoxx 600 in europe, we see lots of green on the screen, investors relieved there is a trade truce between the u.s. and china, and perhaps the tensions will not escalate anymore. this toxics hundred up .9% for a third day in a row, -- the stoxx 600 up .9%, up for the third day in a row. cap the outperformance for the stocks, chip sector, up 2.9% per lots of demands come from from the supply chain and china. we go into the bloomberg. let's take a look at the opening gap for the stocks going all the way back to 1995. these are the gaps up, these are the gaps down. upthe open, the stocks

we've been talking about deutsche bank. don't want to focus on individual stock, but some investors underwhelmed by the restructuring. how does the story of deutsche bank fit into your thoughts there is value in european banks? eric: if you compare and contrast european bank equity and u.s. bank equity over the effectively years, you've been on not dissimilar ratings at various points in time. sector, thereng was considerable consolidation and since then, you've had considerable growth in book values and earnings despite broadly the interest rate environment and the yield curve. in europe over the last five years, they haven't been able to grow sustainably earnings and book value and part of the reason for that has been the interest-rate environment and woth --ter european gr growth, but also excess capacity. it is good to see the likes of -- aree bank aren't shrinking which means higher returns for the sector aggregate -- in aggregate. manus: some pretty strong calls. eric lonergan, macro fund manager at m&g investments st

deutsche bank's been a mess in capital markets. they have a big derivative book, they've eviscerated more balance sheet equity than any bank of probably all time. outside of the ones that are flow longer with us. this isn't new news. the announcement is not about the sudden vulnerability about the european banking industry. i think if you look at european banks, i think they're as well capitalized as they have been in a long time. i don't think we're on the verge of a european banking crisis greece is up 44% year to date. selected a new prime minister. i'm not going to tell you that europe is great. to think that tomorrow europe's our problem, i think despite the negative yielding bonds, the biggest issue is our fed and the biggest issue is we're going to get more fed over the next two weeks than we've probably digested in a long time >> when you say more fed, fed info. or cuts, or -- >> i mean fed -- fed headlines we're going to have powell, four days this week effectively we've got a huge fed meeting next week. we've got minutes