i cannot call the last time we spoke about deutsche bank. on the collapse of well-intentioned plans -- it is real simple. tangible book matters. even bank of america does substantially better. what is the triage you would recommend for john cryan? michael: i think he has already done it. he already did a stint at ubs where he did credibility in the financial community particularly in germany. so the german market opens up 10% today. with financial services industry, it is all about confidence. if you lose confidence, you cannot fund overnight. tom: part of this, you have to get in front of people. deutsche bank is learning you have to have a big new york platform. will they have a lesser new york platform and try to run it out of london? michael: the quick answer would be yes. i do not think he will do anything bold and different. he has been part of this plan for the last two years, bringing up what they are about to do. they will implement that in a way that is not pleasing to the disgruntled shareholders. on the other hand, he is the right

guest: it has to be deutsche bank. about what the big management shakeup will mean for the future of the bank and investment banking in general. we had a loss of ceos leaving banks. they are all leaving. it seems like a lot of the big risk takers on wall street used to be a big banks are not there anymore. maybe this is the era of big bond trading is over. stephanie: so many people over the last two years of complemented the first at morgan stanley to lead out of the fixed income businesses and say private wealth is where it's at. he came from a consulting background. he can look at 3000 feet above. erik: it is such a lost opportunity for deutsche bank. i cannot wait to see what john cryan says about the firm strategy. with ubs, the list goes on europe has lost its banking and trading tight germany's deutsche bank had the opportunity to be that one european champion and you could say that the kind of screwed it up and now this guy john cryan has to decide, is that a mantle we want to reach for or do we want a more cons

that is what he is thinking about a deutsche bank. of deutsche bank surged today.e will hear more later in the bloomberg market day. steeplefinance ball -- -- stiefel financial will buy our glaze. they managed 56 alien in total client assets as of may 31. the deal expected to be completed mid-november. olivia: global sales of mcdonald's still falling, but now less than analysts expected. that is seen as a sign of progress under the new ceo, steve easterbrook. analysts were looking for a drop of .9%. searsstruggling retailer posted a smaller loss in the first quarter. the chain was helped i betty lampert. a strategy of selling off assets like the clothing business. he is now setting up a real estate investment trust that will buy sears store location and then leave them back. that is a look at the top stories we're following at this hour. olivia: apple developers conference just starting in san francisco. mark: adam satariano is outside the moscone he center with the latest. good morning. good morning. tim cook is about to take the stage where they will roll out thr

good luck for the rest of your day. ♪ francine: deutsche bank departures. s resign from germany's biggest bank. john cryan will replace them. manus: a whole lot of work still ahead. angela merkel's warning on greece as she hosts the g-7 summit in bavaria. francine: turkey's currency and markets tumble as the ruling party loses its parliamentary majority in a vote for president erdogan. welcome to "the pulse"

since deutsche bank announced its new ceo. pimm: we will have the information from the developers conference in san francisco. olivia: and the nba finals. ♪ pimm: good afternoon, i am pimm fox. olivia: i have olivia sterns. let's look at where markets are trading this hour. the stocks are little bit off, as european leaders are pushing for a resolution to the greek debt crisis. stocks were lower on friday after that stronger-than-expected jobs report. oil-rich reading a little bit of this morning after speculation that global surplus will boost exports on unyielding oil production. take a check of the bond market and the treasuries. a little bit of a rally and buying activity in the u.s. 30 year very small change. let's think a look at currencies and see how the dollar is moving following those reported treatments that were denied by president obama. dollar 1versus the .1210. look at the top stories crossing the bloomberg terminal this hour. president obama is calling ungreased to make tough political choices. the president sp

stock we are watching closely today is deutsche bank. stors welcome a new management overhaul to germany's largest bank. john cryan will be the next ceo. german chancellor angela merkel spoke about the executive change, appearing not surprised. : it was a decision taken by the company. it is not really a surprise. i don't really want to comment on that. i want deutsche bank to be they take their own decisions, as does any other company in germany. ousting in a bloomberg tv interview he welcome to the resignations. he gave three reasons why the change was needed. >> this was an absolute shock, just a few weeks ago they were giving us responsibility to on june james. it looked like the management team was in place, they succeeded getting through the shareholder meeting. it certainly looked like they were going to give them another year to prove that they can get their strategy through. nobody would see john privacy likely successor. john cryan bring to deutsche bank as it implements the new strategy laid out? cryan is actually very crisis e

jane is out at deutsche bank. can european banks compete with j.p. morgan and goldman sachs?ria. the demand greece chart a way forward for more meetings and phone calls and potential compromise. jean-claude juncker looks for minimal rules. in this hour, we focus on the future of scotland with their minister. good morning, everyone. this is "bloomberg surveillance ," live from our world headquarters in new york. tom keene with brendan greeley. we are on scotland today. i guess we have to go to the president a beer and breakfast sausage? brendan: claiming it was a knock on -- cleaning -- claiming it was a nonalcoholic beer. tom: so it is a greeley scandal? brendan: i really think this is an international incident.

a big shakeup at deutsche bank.he british baker john cryan is to take over sceo. >> that is right, and in recent years, it has been one scandal over another -- after another at germany's largest lender. but at the announcement that they both resign, it still came as a big surprise. >> the markets seem to like the change. but first, this report. >> back in 2012, these two sought to change the management culture at deutsche bank. but that is all in the past. they assume to be yesterday's men. the capital market can be cruel. -- they are soon to be yesterday's men. the capital market can be cruel. not one of monday morning as the market celebrated the news of their respect nations. -- of their resignations. >> they want to close that chapter that was unpleasant for the public. no more dual leadership will stop as the saying goes, too many cooks spoil the broth. >> investors at the annual shareholder meeting to go, only 61% voted in favor of the two. normally, it would be almost 90%. the culture change didn't happen. th

deutsche bank also is definitely seen as the bank that represents germany on the retail side as well.ve anitely does and effect on the country. there were reactions from large labor unions and so on and so forth. it's a very heavily-watched bank here in germany, definitely. pimm: christine harper, is it n will that john crya initiate layoffs at the bank? christine: i think there is no question there will be really a us. a what to cut expenses. -- i think there's no question there will be layoffs. i do not think anyone thinks they can get there by cutting the travel budget. but that is politically fraught. tot of what cryan will have navigate is political and investor competing desires. pimm: thank you very much. our thanks to shane in hamburg and of course, christine harper, here in new york. -- if i hasing up only percent of its budget on women's soccer in the last four years. -- fifa has only spent 1% of its budget on women's soccer. can it become a global event? ♪ pimm: all right, it is day three of the 2015 women's world cup. similar to the men's tournament it is organized by fifa

left in 2011, the bank was profitable again the expectations are very high that he can come into deutsche bankere profitability is lagging behind other peers, and get the bank back together. particular, they said they will cut back concern areas. they said they would spin off their consumer unit. also, yeah experience with that. when he was at ubs, job cuts were a huge topic. they pushed out a lot of people in a short period of time and he can make that kind of turnaround at deutsche bank very quickly. we have a new face and a new strategy, but what does that mean? does it mean a new phase with the same strategy they are developing -- does it mean a new face with the same strategy they are developing? guy: those of the questions we need to have answered. thanks, shane. anna: let's bring in atlantic equities take analyst -- let's bring in an atlantic equities bank analyst. what are the expectations, do you think, for the new guy? guest: john took on this job. it was hellish from 2008 until 2012. all of the issues he has to deal with with capital, the u.s. regulators, taxation, and he is going b

cryan is on the supervisory board of deutsche bank.tors expect them to stick with that strategy albeit with minor adjustments. rishaad: what is the reaction like? we will get investor -- whween shares start trading. shares have not done well in the last couple years. zeb: deutsche bank shares of underperformed all of its peers. if you look at the three performance, the stock is up 1.6%. htssbc is up 16%. and socgen is up 140%. the stock is under perform. rishaad: three years, up 1.4%. ok. going to check on the other corporate stories making headlines. david: shares of -- have fallen after a reported 25% plunge in full year profit. jewelry sales fell 15% in china and 33% combined in hong kong and macau and shoppers cut back on luxury spending. they plan to expand in china by adding 160 more outfits. apple is expected to review details of its new streaming service on monday. it has been pushing with in-time to make an announcement at his annual conference in san francisco. at this event, the software partners will gather to learn about t

deutsche bank shares flying high as the bank's co-ceos step down and say new leader is named. >>> presidenta merkel discuss the needs for the g-7 summit. >>> and american pharoah remains supreme. taking home the triple crown. >>> welcome back. ge is reportedly close to a deal to sell its private equity lending business to canada's top pension fund. it would include more than $10 billion in assets and could be announced today. reports say the deal with canada pension plan investment board includes ges middle market lends for private-backed equity trangs transactions. the sale is part of the reduced exposure to the finance firm ge capital. >>> calpers cutting ties with half of the wall street firms that manage money. it has reduced the fees to investors. the outmanager monies include kkr, blackstone and the carlyle group. both up significantly in german trade. >>> goldman sachs vice chairman michael sherwood has told cnbc the pension time bomb is one of the biggest developments. let's get out to louisa. lou, take it away. >> yeah high guys. the conference starts officially around an hour and

deutsche bank says jain will leave at the end of the month and fitschen will leave in may of 2016. the bank supervisory board will become co-ceo in july and take sole control when fitschen leaves and 16. a series of financial missteps and regulatory penalties that deutsche bank. here is what we look at setting the tone for the market for the u.s. fractional decline here as you can see the dax down two thirds of 1%. futures on wall street indicate the market will open more as well. of course it is early on. we will be navigating the open for you as we approach right now a weaker storm. general electric reportedly nearing a deal with the private equity money business to canada's biggest pension fund. "the wall street journal" reports the deal would include $10 billion in assets with less than the units focused 16 billion in assets. a staffer at new york state prisoners under interrogation this morning. in the escape of the two convicted murderers over the weekend. the staffers thought to have had a relationship with one of the convicts had police are looking for david swiped and richa

morgan stanley, bank of america, barclays, deutsche bank, hsbc, jpmorgan, suntrust bank -- all of them lining up, some of them committing more money. uber is getting half a percentage point below what competitive rates are out there. is it a sign of uber moving towards an ipo? they already have plenty of cash on hand. we have paul sweeney joining me now from new york and cathie woods.

deutsche bank has named a new ceo.will replace the old ceo, who will step aside a prevailing after failing to meet targets. ,he management reshuffled following a fall due to manipulating interest rate. the second-largest industrial company will make its trading debut in hong kong and shanghai today. the company has emerged as one biggest's two companies, valued at over $117 billion. to competelow china aggressively. zealand, the early start up the morning session in asia. fractional gains, a 10th of 1% higher. the new zealand dollar is at 70 u.s. cents, climbing higher off low against the u.s. dollar. a robust jobs report, all eyes on the fed as to whether or not we will see a rate rise in september. counting down to the opening in japan and korea. let's head to japan. the red. 25 closed in futures in chicago pointing to a higher open. a lot of data coming from japan, including first quarter gdp revisions coming out. china trade data, exports, imports and trade balance. dollar-yen, a 13 year low. china, a share boom. a

we hope to find out more news on deutsche bank. arters have been raided. ♪ e bank the how to cut costs playbook. up to 50,000 jobs cut. it is suggested they will follow the rest of the industry. bonds try to find a bid. apple's developer chit was well, it took forever. apple wants to remind brendan greeley to take a copy of the top of his car. good morning, everyone. this is "bloomberg surveillance " live from our world headquarters in new york. tom keene and joining me, brendan greeley. take the cup of coffee off your car. brendan: siri has never worked for me. the only time i hear is when my children push the button to talk to siri. tom: just outcome a built uncle bert's team on small business -- bill dunkelberg's team on small business. a little rift in the german government. brendan:

a ceo surprise, deutsche bank names a new executive. you the roundup on the unwanted 45 lien dollar takeover approach by -- $45 billion takeover approach. scarlet: i am scarlet fu. alix: we have an article by michael regan of bloomberg news who said the word to describe this market is touring. goldman sachs was looking at their sentiment indicator.

i think this is a thing of the past, you would not come up against something like this at deutsche bank and many economists agree that they will get a certain percentage of profit from the banks. however, we have seen a certain amount of banks try to get around this by raising salaries, although not necessarily giving huge bonuses. so maybe the bonus equivalent may seem large, but yet, the packages are still high. olivia: yes, but they are still differing compensation from -- cashast bonuses bonuses. just one thing, because everybody gives us a lot of flak when we have stock bonuses out right, but it is hard to get your mind around a 100 million dollar bonus. any idea how much his group was bringing in her how much is boss was making? i don't know how much his particular group was making, but you're right, getting $100 million in 2008, that would be about 11% of what he bought into the bank. so he would be very profitable as a traitor, however, looking back and to the context of what was going on with that, some of that profitability also is being called into question now. olivia: suzi,

davide: the bank you have spoken with us about and you have warning us about the management at deutsche bankaw two step down. what do you make of this? davide: that's bank is the bank that has de facto refused to accept the regulatory environment had changed. this bank came into the crisis with 50 assets and one in equity. that creates and drop caps and pressure on revenue. as a result there returns have been poor. they have been fined massively. goldman sachs has been growing substantially by 11% per year. that's bank less than 1% -- deutsche bank less than 1%. stephanie: can bringing in a new ceo turned the buzz around, especially if they say they want a cultural shift? davide: i am biased because i was the junior for the first two years of my career. i know him super well. he trained me. he is a man of order. he is not flamboyant. i think he is the right person for the right job. principal, down to earth, ethical, quirky, nerd. he is the opposite of your wall street banker. erik: what does that mean for deutsche bank's aspiration to become the goldman sachs of europe? davide: it should be

and it's interesting to see this story of deutsche bank. , the german dax is one of the hottest marketsf the year in the meantime. receiving this whole qe trade and the dax is down 10%. alix: and there was a note out from bank of america saying of all of the countries we are seeing improvement, that is one area we are not seeing it will stop they have exposure -- seeing it. to severalxposure places. story-- joe: suddenly the about germany seems to be changing a little bit. alix: a story that is not changing, greece. the greek finance minister spoke today. take a listen. varoufakis: history will take you down is a failure of the political class and the european union. alix: if you think the crisis in greece will end soon, think again. joe: we should revisit it in a couple of weeks and see where things are. meanwhile, a developing in -- development another area, turkey had an exciting election. it was quite a shocker. the party of president air to erdogan didident air to not do how people expected. and we saw the turkish lira plunging against the dollar to the lowest level of all time. su

deutsche bank says its offices were searched as part of an investigation into security transactions. they say bank employees are not accused of wrongdoing. batteredbank has been by a series of scandals and surging compliance costs. the ceo are -- the ceos are stepping down. general electric is taking another step away from banking. ge will sell the majority of its private equity lending business to the canada pension plan investment board. the price is about $12 billion. it helps buyout firms lineup take over pricing. in april that they would unload capital assets. airlines are cutting forecasts, american airlines saying benchmark revenue days will below are than expected and revenue from each seat flown will likely fall 8%. concernsreinforce the that the market is getting weaker. motors board is telling fiat chrysler no thanks when it comes to a merger. the fiat ceo made an offer and it e-mail for the gm board to review. a decided their own plan for efficiency and growth to generate more value than merging. mark: mcdonald's is reaching of theto the early days obama administration, na

lauren: if you look at deutsche bank, three things they focus on. the next steps for the ecb. ced a cap as provided to prop up great banks as depositors race to withdraw their money. the second thing is the politics of all this. deutsche bank says botched the word in the next sunday's referendum. greece's government is that a vote on the asserted package offered by creditors rather than membership of the common current fee. third, what do the creditors have to do? reese will default on the pavement tomorrow the same day the bill it expires. the question is whether greece is creditors will pile in the pressure or will they be willing to negotiate. tomorrow is a key day. also july 20th in greece must repay to the ecb. they've got more big payments coming up. >> i was always the bigger issue. people talk about the fact they default to the imf in the ecb payment was front and center. the other thing we want just how the u.s. dollar strengthens on the heels of all of this and that is something front and center as well. the latest comment as well saying he wants greece to remain in t

i want to get some of -- give us the details, the basics about what exactly deutsche bank is investigating. this is early days per it know they have an internal probe going on at the request of the bank of russia from october. they are looking at whether russian clients were allowed to buy stocks and rubles through the bank and then the bank purchased a similar stock in london using u.s. dollars and whether that facilitated money leaving russia and returned and dollars that would effectively facilitate money laundering if that was the case. know -- we are talking about $6 billion in transactions? that is the forecast figure and that could increase. they are telling us currently it seems like it's in its infancy. alerted and it looks like the regulating machine is working. pimm: if a banks clients do something that breaks the law of a country in which the bank operates but the bank does not know that they have broken this law because of some other transactions they may have done, the alleged transactions in london, how does the bank deal with something like this? neil: the problem is either

deutsche bank is the most recent example.he ceo was replaced and the guy they brought in to do a certain about of restructuring -- you could say deutsche bank is six years behind ubs. siemens, very similar tale. their ceo said, we are going to focus on energy and industry, which is what ge did four years ago. the list goes on, companies missing the trend. mark: why have german companies been slower to react? alex: it is clearly a very complex tale./ there are specificities to each company. broadly speaking they think perhaps germany got a little too arrogant. germany has been very successful over the past five years. perhaps they build up a certain amount of hubris. there are practical reasons as well. everything has to be approved by labor representatives as well as shareholder representatives. that can make it hard to push through big changes. mark: how does this fit into the broader german context? paul: -- alex: germany has got big problems. germany, in the past 10 years did introduce a program of reforms and social chang

you are starting with a management shakeup at the head of deutsche bank. >> that's right. anshu jain and juergen fitschen handed in their resignations after shareholder discontent. john cryan has been named ceo of germany's largest lender. he will join the company on the first of july and share the role with jurgen fitch and -- with juergen fitschen. most recently in april, the bank paid u.s. authorities a fine of $2.5 billion to settle a rate reading case. let's check on the markets -- a rate rigging case. let's check on the markets. investors are reacting positively because john cryan's appointment is seen as a fresh start for the bank. let's get a check on how the turkish markets are reacting to these election results. the benchmark index, the bist 100, is trading, down 6.8%. the forex depository is cut for -- all major indices are in negative territory at this hour. to greece, were the government spokesperson has that political wrangling between the country and its creditors continued over the weekend. speaking friday before parliament, alexis tsipras called the latest

deutsche bank dropping in early trading. erik: thank you very much. paradise -- not to we're talking -- the speculation is that buying shares in rubles in moscow or selling and buying for a similar amount in london in dollars will move money out of the country without alerting the authorities. stephanie: shady business. we do not know if they did it, but it is a problem they certainly do not want to be facing. let's move on. talking about walmart. the shareholder meeting is underway in fayetteville arkansas, right now. we sent olivia sterns out there. olivia, tell us, what do shareholders want from walmart? olivia: first of all, i love bentonville, and i do not appreciate being called an upper east side navin -- native to what big shareholders want to see is a marketable, more independent board. there have been a lot of calls from big shareholders for an independent chairman. the walden family is still the majority shareholder, owning 50.9% of the company. rob walton, the psion of the walton family, has been the executive chairman now for 23 years. at

deutsche bank, nicole you have the latest. nicole: something -- a lot of news for deutsche bank.of. the bank confirming officers in frankfurt have been searched by officers and investigators looking into evidence related to client transaction accused of wrongdoing. the rate has been conduct on behalf of prosecutors and also seeking evidence of security transactions by the bank's clients. the stock closed yesterday at 30 to 15 minutes looking 3128 or so on the heels of the news yesterday where we talked about the co-ceo in changing of the guard for the former cfo of pbs's stepping into the top row. that is theirs as well. trade to which the market likes. it had a good week for now the excitable pullback. turning to sports this morning. tampa bay lightning taking a two to one blade. brad callahan with the first goal of the night. cedric scoring with three minutes to go. a three to two win over chicago blackhawks. tomorrow night in chicago. the u.s. women's soccer team won its world cup opener. make and receive no opening the scoring with her first two goals increased in price with

deutsche bank the same to an extent. e back office is where they have a lot of employees across the board. tom: the british banks -- will we see the same cost-cutting from them? richard: royal bank of scotland is cutting back a lot. they are restructuring their institutional bank so it focuses just on the u.k., really. they will keep their presence in the u.s. and singapore and asia but doubt of their -- but get out of everywhere else. that will impact how much money they can make. they have to take out the revenue line to go with those people while taking huge amounts of cost. tom: well said. richard partington, thank you so much, talking about the line item on the income statement. let's look at the line item of the twitter statement. can banks cut to grow? it is an existential question but there it is. can banks cut to grow? we are with jeffrey rosenberg of blackrock. stay with us on the bond market and much more. this is "bloomberg surveillance ." good morning. ♪ "bloomberg surveillance". let's get to the morning must

deutsche bank is announcing resignations the manager team had been under a lot of fire. ading higher. syngenta taking a second proposal. this is a $2 million reverse fee saying the u.s. rival made no concerns. sear's plans to raise $2.6 billion from the spin-off of 2 humidity stores t. retailer expects a launch rights offering to buy shares shares creating higher on that news. >> in market turmoil in turkey the ruling party failing to get a ruling majority and stocks down sharply do the math on 6% here t. country's currency also taking a big hit. so that's one of the front page stories that we're seeing and as far as u.s. interests there, it's hard to really understand. >> except for the turkey in syria. >> it's hard to handicap islamisting, secular lines it's a weird situation there. >> right. >> it's not going to turn into sariia law. it is an sigh lammist date. a lot of people chafed a that. >> this does mean there will be more chaos there the parliamentary system is a lot more noticeable. >> you have been there enough to know. >> are you kidding me? >> you haven't bee

angela merkel was asked specifically about the changinging of the guard of deutsche bank.t, said it was a decision taken by a private company. a britain, former cfo is moving in as the two co-ceos under great controversy quit deutsche bank. down 37% and so the debate continues about strategy investment banking, retail banking and so on. meantime, again, it's still greece that people are worrying about. president obama again at the g-7 actually addressed the situation in greece and suggested it was time for the greek government to take what he called some tough political choices, growth of their economy. the focus now it turns again to the g-7 meetings on wednesday where the european leaders could meet with the greek prime minister. in the meantime the greek finance minister was in berlin today. he suggested that he has what he called a very long, productive meeting with the german finance minister who, of course, has been a heavy critic of what the greeks are doing. i think, carl, a sense of gridlock as a result of what happened friday/saturday. >> coming days will be inte

didn't hurt that deutsche bank pulled the plug. deutsche bank, no standout stock itself, didn't clobber jp morgan, but goldman's a huge invisible stock that's been a beacon of light. citigroup seemed like it finally found the promised land. deutsche bank rebuff reminded you that the milk can sour and there's no honey. just to keep that kind of metaphor going, you want killjoys? how about citigroup taking the cyber security stocks to the wood shed today. i've said you're going to get a pullback here but i didn't expect citigroup to make it happen. and the firm really seemed to be down there. sellers beware. when the next data breach comes, you only ask yourself why did i sell them? nevertheless whenever you see a parabolic move, somebody's going to say enough is enough. look, that's just what comes with the super high growth nosebleed territory. and of course, to make matters worse, the transports have to crash the misery party. fedex is still reeling, even as so much damage came from the super freaking strong dollar. they looked li

kudos for deutsche bank downgrading citi group saying what we're saying. stocks are up 20%. we will talk about whether there's still vl left in owning these bank stocks in the next hour. >>> meantime a news alert in the bond market right now, 5-year notes up for auction. we talk about this lack of liquidity in the bond market lately. what's demand like? >> demand was definitely a bit below average. 35 billion 5-year notes hit the street about two minutes ago. yield 1.71%. the bid side to the one issued market was 1.70 and a half. looks to me like 1.70s were trading. tail off a bit. if we look at internals, 2.39 bid to cover is a little light. 56.6 on indirect close to 10-auction average. 5.6 on directs, a bit below the 10-auction arch. every internal is just a little off. 1.7 1 1.71%, c-minus. tomorrow last for the 90 billion in coupon supply with 29 billion 7-year notes. >> thank you, ricky. c-minus for the 5s. yesterday for the 2s it was a b-minus. we'll see what tomorrow brings. >>> greece has many on wall street concerned. some are starting to say that china might be the

the incoming deutsche bank ceo talked about increased statistics. universal banking model is us. they tried it at a discount and it was difficult to manage. being all things to all people is not the way forward. anna: thank you very much. guy: it is 12 minutes past the hour, we have 50 minutes to go until the market open. apple announces its next move but is the company already playing catch-up when it comes to music streaming? a look at what the tech giant is up against. ♪ anna: welcome back to "countdown to coat only 45 minutes ago -- welcome back to "countdown." only 45 minutes until the markets open. guy: hsbc will target annual cost savings by about $5 billion. the lender says it will sell its operations in turkey and brazil. anna: the highlight of the apple developers conference was apple music. a brand-new streaming service. it will debut on june 30, 30 million songs. guy: south korea announces deaths from mers. 95 confirmed cases, hong kong is issued a red travel warning. anna: senior independent advisor of global markets is still with us. bo

they are asking that question of deutsche bank recently.hey have seen some investor unrest about the plans they came out with an april. that led to the resignation of the ceos. the coat see if executives. they decided not to take that radical action. they'd believe they can still be a global bank, not the world's local bank which is their old catchphrase. being all things to all people was too expensive. they need that international reach because the clients that they serve, even if they are not profitable in one part of the world will be in another. it's important to them to have that network reaching people around the world. olivia: what about the base? really going to leave london? are they really going to the base to asia? richard: they could've possibly. they are undertaking a review and there has been a lot of noise in the u.k. about this. the chancellor is going to make a speech in london to bankers and large companies. i think the banks are going to be looking to that to find out how competitive london can be. the bank here has to p

now you have so few banks with so much risk in those top nine banks which deutsche bank is one of those global banks, that when you have turmoil at the top, when the ceos leave, that's when the alarm bells start going off. neil: does it signal that deutsche had problems beyond just these guys? >> deutsche bank is a very well captainized bank -- neil: so it's not like the bank is in trouble. >> it's not going under, that's for sure. but because it has so much risk when you see the management start to change and, you know, then you start worrying about the management and what's underlying the problems there. and p, listen, there's regulatory issues there, they got dinged a bunch of times on the libor manipulation, on a few other things. and there's lots of talk about them downsizing massively because of this. because now they see that, you know, it needs to be a much simpler organization to be able to run. so that's what's going on there. neil: what is the fear wuss then that we would feel -- with us that we would feel or potentially could feel something from this? is that overdone? >> ye

they downgraded deutsche bank by two notches. it looks better than just after the market open he had a pitch coming out earlier this year with the same reasoning downgrading the bank. also it is consequently warning of the low profitability german banks are facing. also the public lenders had super low profitability. the german central bank is saying really that there needs to be more consolidation in order to prop up profitability in the german banking market. with that back to you. >> shares are also trading off the back of that. bill winters also had that s&p delivered the decision. share prices reacting positively. the troubled bank undergoes a $400 million turn around. let's talk about banks in general now. global head of financial he search at pimco. they don't feel that the policy will be there to support them as much overall. that's on one side. on the other side we have a bit of growth coming through and interest rates at a very low level. is the banking sector attractive? >> first of all on the s&p decision there's a lot

daimler, of course, an automaker, deutsche bank, down 5%. ket that was read across the board. , eight give you an idea out of the worst 10 performers banks.year stocks 600, in italian bank, the lowest fall since may as well. i begin with the euro stocks. i want to finish with the euro stocks. 14 minutes after the market closed. it came back, but the last hour, it fell again. worst performer in the blue-chip benchmark since 2011. a fall despite a surprise interest rate cut. we have details from hong kong. the shanghai -- is officially in bear market territory following a trade on monday where the main index plunged. swing sincelargest 1992. stocks were down 22% from the ending china for longest ever bowl market. traders were expected to be bullish, but investors once again sold out, particularly on technology layers. so, it seems the week off remains in play. let's take a look at the top stories crossing the bloomberg terminal. the second of the new york escape is hospitalized in critical conditions. david shot and wounded sweat in april rural

scarlet: deutsche bank is conducting an internal investigation by possible money-laundering. about $6 may involve billion of transactions over more than four years. the german bank is analyzing data from 2011 through 2015. the move follows a request by the bank of russia which asked deutsche bank to examine stock trading activities of some clients in the country. walmart's board has elected a new chairman. he's the grand son-in-law of sam walton. the 45-year-old is taking on the new role after joining the board of the world's largest retailer in 2008. >> and it comes to our board, because of our families commitment combined with strong, independent director voices, we have a great balance. this is so important right now, with a tremendous change that all of retail is going through. the stage forset his ascension a year ago, when it made him a vice-chairman. he has also been a venture capitalist and formerly worked at goldman sachs. those are some of the top stories we are following on this friday. scarlet: coming up on "bloomberg weather may berm here, but only one half of am

deutsche bank said one of the main drivers of oil prices will be the dollar. ave seen the fed five first from other central banks. that was the action we saw today. the initial response went up and then it went back down and you can attribute part of that to the stronger dollar on the jobs number. for many be pivotable across the board. betty: alix steel on the oil market. much more head. a big change at walmart. mark: they are naming the grandson in law of sam walton as the new chairman. market day continues after the short break. ♪ back to theome bloomberg market day. i am mark crumpton along with my collie, betty liu. eddie: -- a big announcement in arkansas. penner has been named the chairman. greg: because of our family's commitments combined with strong director voices, we have a great balance. this is so important right now the terminus change that all of retail is going through. mark: olivia sterns joins us from fayetteville, arkansas. we understand that doug mcmillan got off the stage. what did he have to say? olivia: i would like to point out that he

a shakeout that deutsche bank is sending shares slightly higher in european trading.dy has been watching the story of hold over the weekend. germany's biggest bank says co-ceo on shoe juncker jain and fitschen became executives in 2012. georgia says jain religion 30 and fitschen released may of 2016. currently a member of the supervisory board will then become co-ceo in july and take sole control with some five that iran could adjourn designation followed a series of financial missteps and regulatory penalties at deutsche bank. high drama at the high court today. the supreme court could issue its ruling on the affordable carrots. the high court could decide whether consumers than three dozen states to use the federal health insurance marketplace can continue to receive subsidies to help them purchase coverage. if the court finds the subsidies illegal, millions of people with the health insurance does dramatically forcing them to drop their health insurance. they could also rule on same-sex marriage. this entry was cap market tool has some investors worried about a pos

jpmorgan, hbc, deutsche bank and a list of characters after them -- why is this happening? mr. etail banking is tougher. we have a new regulatory agency which makes it less advantageous and more punishing. but number two, you've got in consolidation what you see very clearly is it's no longer let's buy that one and take out the cost. it's let's buy that one because they have a business line we don't have and they have better financing. tom: how many people have you counted in a branch bank in new york city when you walk by? three? are there people in branch banks? brendan: there are. what i want to understand is, when we talk about regional banks and larger banks, in the future, given the regulatory environment, what is the smallest sized bank they can survive out 10 years? mr. alberson: it is really over a billion. and some are saying that it is heading over $10 billion in time. tom: it's the canadian banks. esther alberson: we still have 5900. tom: but still, that is the scale of going from -- brendan: are we going to see another wave? we solve the banks under $100 million in

scarlet: here is deutsche bank surging in europe and they are also higher in u.s. trading.arclays had approximately 180 financial advisors in the u.s. that managed about 56 alien in total client assets as of may 31. the deal is expected to be afterted -- erik: dominating the country's party lostis ak t power. what now? >> present our --resident kirchner despite the claims of his prime minister that this was an epic success for the ruling party, it is clear it was anything but. the ruling party will have to lick its wounds. they will have 45 days in which they can form a coalition. thatost likely scenario is the nationalist mhp will get into be -- into bed. the act party will rule without a majority in parliament and try to get agreements from other parties not to topple it in exchange for various legislation. whichever scenario plays out, it is likely we will have fresh elections. selloff on the stock market and bonds as well. turkish democracy is clearly alive and kicking and some -- some people think central-bank may raise rates. erik: thank you. stephanie: sears -- scarl

morgan stanley, bank of america, barclays, deutsche bank, hsbc, jpmorgan, suntrust bank -- all of themining up, some of them committing more money. uber is getting half a percentage point below what competitive rates are out there. is it a sign of uber moving towards an ipo? they already have plenty of cash on hand. we have paul sweeney joining me now from new york and cathie woods. paul, i want to start with you. why is uber taking out this line of credit if they don't need the money? paul: it is the first step of going public. we have seen this move in the past from other early-stage companies, tech companies that are really hot on wall street. by going to your banks and singing we want a line of credit which we think most large companies should have, it shows that a lot of these banks are committed to the company. they look at the commitments made at the credit companies as a precursor, a gauge at how much the companies could depend on these investment banks. yes, it is always nice to have a lot of credit in the marketplace before going public, but it is also a little bit of a road

the winner on the street was deutsche bank who had 275,000. he was the closest of the major banks. and then i wanted to highlight the twitter guesses. alix: what was your guess? joe: i got it wrong on all accounts. i think i guessed 240,000 and i guessed that the unemployment rate was going to decline. i completely blew it. alix: you are done. timeout. joe: i will never do it again. belmont, we is the will talk about the econ or the market triple crown. there are three big stories. obviously one is the job situation and all of that. opec and one is the then greece. landis andd morgan eric green of td securities. good to be here. alix: we never get to see you in studio. away,s your biggest take joe? joe: yesterday we had christine lagarde saying that the data says we should wait and today the data point undermines that. i would love to hear from you. chad: when i look at jobs i don't even think about it. it is moving as we expected and is moving higher. jobs 275,000 is all we need to get it off the zero bound. the consumer spending and the durable goods order. what we need to see is

deutsche bank -- coming to an abrupt end. he will be stepping down.also be departing next may. between the time that mr. jain steps down and next may, the firm will be run by another, a co-ceo. highly regarded in the industry. he is the former cfo at ubs. faces aits a bank that challenge of stricter regulatory oversight, a lack of share price , ms. profit targets, so on. he will need to come up with a credible strategy to get some return and turn things around for the bank. let's take a look at google's push into driverless cars. heading a bit of a robot. google is planning to disclose more information on a regular basis. the plan is to issue monthly reports on technology. include as will summary of the project activities, any incidents involving the cars. been 13 accidents, none of which the company says where the fault of the vehicle itself. it brings up a valid point of concern, who is ultimately responsible when these things happen on public streets. still obviously a work in progress. google admits it is still learning. rishaad: another story on

i was looking at deutsche bank, the story of the whole weekend -- the stock was higher on reports of a ceo shuffle, but goldman sachs had a note out this morning that was pretty skeptical, saying this positive ,eaction could be short-lived saying he struggles with this rather are structural than management related. there's a real lack of return on equity on platforms. they don't have anything that's going to help them do that. joe: people have been talking andt bond market liquidity you have huge players tipping their balance sheets. meanwhile, germany's main index was one of the hottest markets of the year, an awesome start to the year, but we are seeing this entered and the dax has correction territory. alix: bank of america had a note .alking about germany that's one we are not seeing an improvement in the pmi. they had explosions in the markets and in some ways, they are more disadvantaged. joe: suddenly, the story seems to be changing. alix: a story that's not changing -- greece. the prime minister spoke earlier today at an event in berlin. agreement need is an quickly. an accid

brent: authorities have searched deutsche bank's headquarters in frankfurt. they say their own employees were not targeted in the probe. sarah: investigators are looking into share transactions by some of their clients. on sunday, the banks to co-chief executives announced they would resign. brent: hsbc has announced its latest restructuring plans. this comes ahead of an investor update. sarah: the bank is considering moving its headquarters out of london. a city it has -- that has earned billions over the years. >> europe's largest bank is undergoing massive restructuring. hsbc says it plans to cut up to 50,000 jobs worldwide. the job cuts are part of an a stare drive it has been going on for years. in 2010, the work force numbered 295,000. the work will be down to 200-8000 after this latest bloodletting. the first step is cutting to 5000 jobs by selling off the turkish units. 20,000 more jobs are to be asked -- axed in i.t. the restructuring was implemented by stuart gulliver. he said due to the 2008 financial crisis, major banks like hsbc have to it here to