deutsche bank was part of the fraud. it has been fined $2.5 billion but there are several ongoing lawsuits where investors are demanding compensation from the bank. investigators are still looking into dodging mortgage deals deutsche bank made in the u.s., which may have helped trigger the financial crisis. u.s. banks have already paid millions in fines for similar deals. but investigators are still taking a close look at deutsche bank's books. at the moscow branch, employees are accused of laundering money for russian clients. the bank is also accused of violating western sanctions against russia, entering into bad deals with some 5.5 billion euros. that could draw harsh penalties from western authorities. deutsche bank is expecting to pay billions in fines. that is why company brass are tightening their belts. they are closing branches worldwide, cutting 9000 jobs, 4000 alone in germany. deutsche bank subsidiary postbank is to be sold in the coming months. brent: some call it europe's biggest achievement, it europe's pa

deutsche bank we knew would be bad. the detail that would come out of the investment bank in terms of the level of underperformance. every major division is down. that is not what john cryer ne

deutsche bank reporting a fourth-quarter loss. currency rating fell 16%. >> in spite of continuing of low or negative interest rates, revenues held up well. progress with an increase in 20%. posted aeutsche bank net loss of 7.4 billion u.s. dollars. time warner cable fourth-quarter results better than expected. tops $6 billion. another big quarter for facebook. fourth-quarter sales rose 52 percent. about 4/5 of the revenue is from mobile devices now. a 1.6 billion users at this point. tom: you wonder where this will be in five years. we are doing a reset after the f ed meeting. there are those in the employment game and those that are not. adjusted forims the number employed. the general trend of improving ugliness, down we go. it is only a part of america. can janet yellen do policy ?ithin two america's >> a she is trying to get back to full employment. , those who have education tend to do well throughout recessions. we are trying to get everyone on board. they are taking a long time now. we are looking at where we are creating m

deutsche bank we knew would be bad. not realize the detail that would come out of the investment bank in terms of the level of underperformance. every major division is down. that is not what john cryer needed to hear. cfo laterar from the on around noon. jon: i will break all of that down. mode at the fed. the central bank opened the door to change in its economic outlook. is a march hike off the table? deutsche bank reports a revenue loss. we will speak to the cfo later today. and the largest social network post another quarter of revenue. guy: a busy morning around europe. he is caroline hyde. hasline: deutsche bank reported a fourth-quarter loss at its investment bank as revenue at each of its businesses fell. they posted in that loss of 56 billion euros since 2013. do not miss our interview with the deutsche bank cfo at noon u.k. time. says bondnley investors should favor long-term securities after the fed acknowledged there are risks for the global economy. long data bonds stand to benefit most. facebook shares soa

nejra: deutsche bank's securities unit posted a loss in the fourth quarter with each of the business is reporting a slump in revenue. the bank posted a net loss of 6.8 billion euros for 2015. don't miss our interview with the cfo at noon u.k. time. federal reserve chair janet yellen and her colleagues have opened the door to a change in our outlook for the u.s. economy this year and possibly a slower pace of interest rate hikes. it is " closely monitoring global economic and financial developments while assessing their implications for the labor market and inflation." facebook shares soared and extended trade after delivering another quarter of record revenue. fourth-quarter sales and profit billionimates at 1.6 users logged on every mod. 80% of revenue came from mobile devices as facebook continues to sell targeted ads across the spectrum using video. >> video is an important part of the facebook experience. and continue to invest here is important for a lot of people to share some of the most engaging content. we continue to make progress and now 100 million hours of video are watch

it's not going to be a pretty much for deutsche bank employees. : will the bank after raise capital because it's financials strengthened at the end of last year? the core of people who say deutsche bank needs to raise capital is not going any quieter. today he reiterated those two analysts and the press in frankfurt that he does not currently see any to raise capital. the big question there, the wildcard is whether they have to with u.s. settlement regulators in the residential mortgage-backed securities scandal, is that comes along as expected and billions of dollars, you can't rule it out. betty: thank you very much. we will be back. betty: i'm betty liu with mark barton in london. they tried to come off the lows, right? mark: who would have thought a more dovish fed would have been overshadowed by weak earnings, the oil prices pushed up oil companies, miners also rose, those were the only gaining groups. but it was earnings that dominated today's session. inope's biggest drugmaker the news today, down by 3.7%. shares falling the most since augus

stephanie: let's go to number three, deutsche bank. er the bank this literature holders again. shares down around 4% after the bank disappointed holders again. you are not talking about deutsche bank specifically. more broadly, how has the pullback from wall street banks from debt trading affected how you do business? rick: one, you have to think about -- there is a healthy part about it people are getting back to court investing as opposed do i have to think about what i will do to make money over the next hour or so. i will hold an asset for a longer time. that is healthy. that being said, there is this how do you interface with deutsche bank or other firms? they are changing their model. things like research interface, things like financing interface will be pretty important. no doubt, the liquidity some of the markets is not where it was. stephanie: what does that mean for you given 700 billion in assets? to move the needle, it is like moving a barge. you lose a massive liquidity provider like what you think does that mean for your

deutsche bank may be the poster child in that conversation. is there anything you see out there that draws any sort of correlation to 2008 as it relates to the banks? >> okay. i'm glad to answer that. especially in '08 i was working at a large bank. i think ultimately what ended up being multiple break points was you lost a bar of last result. we saw that with the failure of big institutions. the only maybe analogy you would make today is the structure of the markets has changed. the constraints are placed on banks today so if you are a hedge fund or a traditional buyer of somewhat illiquid assets you have a feeling you don't have a buyer of last resorts. the death spiral that comes from that is the only sort of analogy. the difference is in '08, this engulfed the entire mortgage market, affected the home buyer market. the buyer of a house asset was the buyer who was actually being engulfed in a credit, lack of credit access. i think the difference today is if the fracture point is in the energy sector and it's going to affect either u.s. energ

these are your headlines. >> the stoxx 600 turns slightly negative. >> deutsche bank says it's investing in people to kick start the equity business. this after the bank posted its fist annual loss since the financial crisis. >> an earnings miss for roche weighing on the smi, citing a major negative currency impact. >> we've seen this leveling off. the dollar, as you know, is also quite strong. so probably will see less of an effect, but then again, who knows how the currencies will develop. >> defensive to the very end. japan's economy minister resigns, but he continues to deny allegations that he accepted a bribe, saying it would, quote, lack dignity. >>> hi, everybody. welcome back. u.k. gdp data just hitting our wires right now. fourth quarter growth looking pretty weak. we're looking here at a preliminary fourth quarter 2015 figure of 1.9% year on year versus what we saw in the third quarter of 2.3% year on year. the lowest since 2013. and by and large, skimming through, it doesn't look too good. >> you said that's the key here, in line with forecasts, which could explain why with e

he feels capable of getting deutsche bank back on the rails, but no one knows how long it will take forhe bank to become profitable again. anchor: had -- he's been trying to reinsure investors in that press conference, haven't they given up on deutsche long ago? reporter: hi. they have definitely, if you take a look at the picture that you showed us. it is very clear that investors are getting rid of the deutsche bank stocks. that we saw further plunge today of about 4% when that press conference took place. investors want to believe him and he's definitely a capable man. but the numbers are just not speaking for themselves yet. we will see if he manages to somehow get that bank running again as it was in the past. anchor: is he just trying to get the bad news out of the way? reporter: he probably is. that is a very common practice when a new c.e.o. comes in. he tries to get rid of the garbage, if you want to say. in a time frame, well, this is not me, it was the guys before me. so that is a very common practice and we possibly are seeing that as well. investors knows that -- know that.

deutsche bank off 7%.s low as 9% to the down side earlier and deutsche bank with the first full year loss since 2008. we're talking about a fourth quarter loss of 2.1 billion euros. that's litigation and restructuring and weakness in revenues that surprised many to the down side. back to you. >> thank you for the market check in europe. interesting comments to tell you about on the sell off. the major declines that we're seeing in the stock and credit markets could suggest that margin calls are going on. also saying that he doesn't expect the high yield junk bond market to bottom out unless the volatility index rises above 40. it's currently just below 30 and importantly, wilfred not at the highs we saw last august during the china induced sell off which was much more fear driven. higher vix levels. this is a liquidation cycle and the market has a sell the winner mentality which clearly we have been seeing even the few hundred point buys in the futures that we have been reporting on that we get sometimes c

capital than more they need in four years time. -- is it deutsche bank barclays or the french banks thatto lose? davide: in the case of deutsche outsized,d income is on the balance sheet and the franchise. theye case of barclays, have turned themselves in an investment bank, and they cannot compete with the u.s. houses because there is a much bigger domestic market. they are more profitable in a subscale. francine: this is one of the themes that we have been talking about and we are speaking with the barclays chairman. tom: they have to go back to making money. steven major, i know you do not banking because you will be put in the timeout chair, but you can discuss the yield curve. is that curve going to be there? steven: there is this assumption that the rate increases will come through. some of the bullishness on banks that i am hearing is based on the margins and rate increases, but actually is that right? haven't things changed the echo are we sure that banks profit? they may have done in the past, but a lot of things have changed . to actually do that, they have to be in a position

well not good news for deutsche bank. shares off about 9% weighing on the broader german market and some of this was expected when we talk about litigation and restructuring but analysts saying it's the decline in investment banking revenue that did come as a surprise. especially seeing other lenders in the united states particularly keep those quite strong. so a lot of work to be done for the new co-chief executive here. >> yeah. absolutely. do you know what, nancy, i thought i was going to be original but i find myself in complete agreement. i don't care about the litigation. i don't. i knew it would be worked through. these are legacy problems. if they were still misbehaving then i'd have a problem with it but i don't think they are. it's the investment banking and current activity where i have a problem with and concern with because this is the on going business. not the legacy stuff. not the old stuff it's the current business and i'm afraid to say they continue to trade at a significant discount to many european pier

citigroup touching a three-year low itself and deutsche bank, a name we've talked about a lot in this show. that stock hit an all-time lot and are banks telling us that the banks are about to trigger a larger event? >> i think the big part of it is a flattening yield curve. kruld oil has been the story for the last nine months and now people are finding out maybe it does become part of the banks and maybe it becomes a bigger problem. deutsche bank has been referring to something commodity-related when it was a $34 stock. you can't dismiss the fact at all-time lows deutsche bank is probably the largest derivative bank in the world is trying to tell the rest of the market something. >> the thing is we've already had a number of earnings from the key financial players. i talked to a lot of guys who invest in financials and do it in a way not only in terms of the public markets but the private markets. banks are not complaining of credit contingent outside of the trusts and possibly regional banks in the oil belt, so at this point to say that this is a credit crisis for financials, i mean

>> i think deutsche bank is problematic. i don't like the share price chart. i think hsbc, standard charter are a group of banks that worry me. >> i think earlier this week on twitter, you said could you see ten-year yields trading down to 1.2%. correct me if i got that incorrect. that flies in the face of just about what everybody else is saying. if that is the case, what happens to the yield curve? >> yeah. that makes me comfortable. i honestly think one of the best in the world right now is to own tlt. i think the yield curve goes a little bit lower. gets down to maybe 50 basis points which is where japan gets to in a recession. that's where we're going. i think this level is indicating a recession already. >> what are the trades right now that you have the most conviction in? are they tilted trades, short markets? >> i don't think there are many easy opportunities on the long side. the risk it market is showing you is to the down side. people are positioned wrongly. i think the bond market is much easier bet because everybody is the other way around. that m

going into 2016 that they are getting that behind them, whether some of the , likeglobal banks deutsche bankey still have to settle these large liabilities. lloyd blankfein was praising this about weathering the economic volatility. when you look at goldman sachs compared to other big banks, is it better than the others? i think theyldman, are unique in that they are almost solely focused on the institutional capital markets. they have an out things they are looking at, but in general, they are the most tied to that business. it tends to be a very volatile business, although goldman will point out that the lines do not necessarily move together all of the time. the other takeaway i would say is that credit is really a rising concern, and that is much more of an issue for lenders with the, commercial lending banks. so bank of america, jp morgan, citigroup, we saw losses at all of those banks as well as wells fargo, and investors are really focusing on energy. what does question is this portend for the future? ofthis going to be the rise a bigger credit issue? will it impact markets? so that w

there will be no bonuses this year for top managers at deutsche bank.he news comes as the lender reports a loss of 6.8 billion euros last year. they were hit by 5.2 billion euros worth of expenses due to legal disputes. it also wrote down the value of its assets and businesses by 5.8 billion euros. john cryan does not say when the bank will return to profit, urging patience. let me say that, generally speaking, we know that restructuring can be very challenging. tonight, it requires time, determination, and patience. i know these situations firsthand and i am confident that we will succeed. next up, we take a look at the stock market in the united states. stocks have been going in and out of positive territory so far this session. we have seen them stabilize above the flatline in the last couple of hours with the dow jones currently up around .75%. energy shares have been leading the way. by asok shares surging much as 60% after the company reported big gains in revenues and subscribers during his last financial quarter. it was negative for the european

deutsche bank sees it hitting 1985 lows. welcome to "the pulse" live here in london. i'm francine lacqua. let's get straight to your data check because in the last couple tinutes, both wti and bren falling below that psychological $30 level. ymex,an see crude, the n 29.6. a lot of these european stocks are under pressure. they are down 1%. this is on the back of the shanghai composite. it's fallen from 20%. that is well into a correction today. 20% was over the last couple weeks which means we are now in bear territory. let's get straight to first word news. nejra: the shanghai composite has fallen back into a bear market after dropping 20% from its high. the slide wife suck gains from a statement to campaign. as investors lose confidence in beijing's efforts to manage the country's economy. general electric has agreed to sell its appliance business to china's group for $5.4 billion. the transaction comes after the sale to electrolux collapse. billiton said it expects a take a write-down of $4.9 billion on the value of its u.s. shale assets. the company is cutting cap

deutsche bank debunked this myth.inky chadha, chief global strategist at deutsche bank, is back with us. one argument we have is that we have hit peak buybacks. why is that an unfair comparison? that is the nominal dollar amount and no one can disagree that 400 60 million in by last year is about the peak we had in 2007, the last physical bpeak. it is important to keep in mind that the buybacks were done out of earnings. higher, of 25-30% normalized earnings are 40-50% higher. if you think about buybacks as the typical payout, the payout ratio is well below where we were at the last peak. if you use the payout ratio for earnings in 2007, instead of the buybacks today, if we were at the peak we would $600 billion in buybacks. scarlet: the other question is leverage because you have found that the operating cash flow generated by earnings fully covers not just buybacks but dividends and as well. companies that are taking on debt, that is happening because they can, not because they need to. binky: exactly. the s&p 500 a

david: investors preparing for bad news from deutsche bank. the bank will report its first -- petitions are the bank will report its first loss -- alix: reporting a net loss of $3 billion last year. its first yearly loss since 2002. david: he says the company still has huge potential. he will tell us where the value is. ♪ alix: welcome back. for -- it is nice to have you here. he is not scarlet. it's ok. a look at some of the biggest business stories in the news right now. johnson and johnson is looking to settle lawsuits filed by vaginal meshlt inserts for their injuries. j and j agreed to pay to resolve between 2000 to 3000 suits. the company faces david: over 42,000 other cases. another driver has died in a crash involving exploding to cut it airbag inflator's. takata says the driver died last year in india. if the inflator was the cause it would be the 11th person killed worldwide by takata airbags. alix: wendy's says it is investigating reports of unusual activities on payment cards used in its restaurants. it has launched an investigation

guy: ice -- i set 30 deutsche bank press conference. through the deutsche bank press conference.lexander: they cannot go much lower. turns out that is completely out the window here and we can move deep into negative territory. people will continue to purchase it. it makes sense when there is a central bank in the market. seeing a lot of bonds who are not targeting a profit. it could go a lot lower. the boj cited they are going to go deep into negative territory here it -- negative territory. there is good be more pressure building. jonathan: let's wrap up the last month. the federal received leading out of march. boj going into negative territory. a big conversation we have had over the last month is where do you go for safety? the competition we had yesterday is going to yen and the options market. that correlation with equities markets has been tight. given the boj signaling, i wonder if that is off the table and where do you go if you want a hedge risk. it is not in the yen, given what the bank of japan has done. it is not in the swissie. alexander: it is not in the euro eith

we had raul paul on this summer, in july, when deutsche bank was trading 34 and i remember him saying as clear as day there is a good chance it will trade $25 and here we are trading with a $23 handle. so it is clear there is something going on in deutsche bank because it is underperforming the rest of its peers. >> and when he brought this up, it is complicated and i tried to make it simple if i understand what is going on. we look at the credit default swaps. price of ensuring debt of glenn corp. so it spiked up in the summer. but could you see even when the asset sales, even with the equity that they raise, the price of insurance on glenn corp is still going up. it is odd to me there is as much equity value as there is. and it wouldn't be shocking if they were to tap the equity markets once again. >> so it is dilutive. >> yes. >> and i don't see -- does anyone on this desk see a world where commodities tick higher rather than lower. >> to save them. >> i could see oil in the 30s. i could see it trading back to $20. if you look back at 2000 the wti chart, it could trade back to that

the one major exception is, of course, deutsche bank.pping sharply again av warning they are going to post a record loss for 2015. more than $7 billion. litigation. we mentioned that, dave, because that's when the new ceo took over and is trying to right this ship. it's been tough. guys, back to you. >> a lot of those headlines feel like deja vu. thanks for bringing them to us. >>> up next, a rough start to the year for stocks, but our next guest says this correction could actually be good news for the global economy. he will join us to make his case when "squawk alley" returns. it was always just a hobby. something you did for fun. until the day it became something much more. and that is why you invest. the best returns aren't just measured in dollars. ♪ these are the hands that build the machines, the machines that sort, stack and seal. these are the hands that keep private information private. these are the hands of pitney bowes, the craftsmen of commerce. these are the hands that dig for opportunity, identify patterns, and uncover ri

the big focus here is on deutsche bank. shares are trading lower after germany's largest lender reported that fourth quarter loss of 2.1 billion euros, hurt by weaker trading. a lot of this was expected after the preliminary guidance. we're listening to comments from the co-ceos as we speak. that's not doing much to reassure investors. back to you. >> all right, nancy. thank you very much for the update. in other headlines this morning, u.s. health inspectors have found the practices at a theranos lab, quote, at immediate jeopardy. a statement says an inspection back in november uncovered five major violations of federal laws governing clinical labs. they could be fined $10,000 a day in the issues are not fiktsed. it is one of silicon valley's most highest profile startups. the company says the inspection results don't currently reflect the state of the lab. it has been so -- i mean, it's a private company, but so interesting to see these setbacks. >> still to come here on "worldwide exchange," it's debate day in iowa. at l

reporter: germany's flagship institution deutsche bank has announced a loss for 2015. the bank says it is related to the record fines and penalties that it faced last year in london as well as depreciation. the losses come as financial markets are in retreat worldwide with investors increasingly pessimistic about growth pros pebts. that is it for now. we will continue to bring you coverage of all things davos. i'm off for today. the latest business news in the upcoming shows. anchor: in sports, golf has a big year ahead with the ryder cup. the game is trying to appeal to a younger audience. will scotters and shoots help? >> golf is a sedate game but things may be about to change. scooters or golf balls have been trialed at this hsbc championship. jordan speith found a way to knock out roary mci will roy. >> we were kind of going this way and i kind of slowed down and bumped the back of his board and fortunately his ankle stayed on the board, so that was nice. >> trousers have been part of golf's tradition, but the european tour is now allowing shorts during practice. a

balance sheet it is such a global world, we saw what happened in '08 and it is more so now, that if deutsche bank problem, not good for any of them. >> that chart is horrendous. >> it is bad. >> and when you start talking about a big global bank, you talk about other big systemic issues and questions. a big oil company goes and it is problematic but banking is a whole other thing. >> b.k. has been on this and raoul pal said it would trade lower than that. and here we are now. is this the canary in the coal mine. is this the today's market. it didn't bounce today. you might be spot on. >> over 7 million shares traded it trades over a million. >> guy is good on that. >> it was over 5%. we could talk inside, outside, on the web extra. we used to do that. >> mike. thank you so much. for more "options action" check out the full show at 5:30 p.m. eastern on friday. >>> coming up next, the traders tell you what they are watching tomorrow right after the break. more "fast money" up next. here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader, r

sources say jpmorgan, hsbc, and deutsche bank are trying to win a role in an offering of aramco.hat it isconfirmed considering selling part of the business. for more on these stories, terminal clusters can head to top go. let's get more on that with elliott gotkine. sliding oil prices. it is not actually the most valuable bid. it is all about the refining side of the business. elliott: that's right, manus. saudi aramco is the crown jewel of saudi state assets. they control more than 1/10 of the global oil market. they control some of the world's biggest oil fields. perhaps surprising that the saudi authorities may not be inclined to ipo that bit and may go for some of the subsidiaries. that is something the crown prince talked about. the refining business may not be worth trillions of dollars. still not too shabby. you are talking about the world's fourth biggest refiner. it is processing oil that it directly controls, more than 3 million barrels a day. it wants to be number one by 2025. one of the way they are trying to structure these refineries is that these refiners would buy

the clever folks at deutsch bank have come up with a new way to decipher the mystery of what we call fed speak with, have a look at this. >> yep, that's the equation. no biggie. you may have to spend the break working on that one. >> we need to know what a and x are. >> the variables in question. nevertheless, if you can crack this equation, e-mail in. let us know. we'll reveal the meaning at the end of the show, so stay tuned for that one. the flu virus hits big. with aches, chills, and fever, there's no such thing as a little flu. and it needs a big solution: an antiviral. so when the flu hits, call your doctor right away and up the ante with antiviral tamiflu. prescription tamiflu is an antiviral that attacks the flu virus at its source and helps stop it from spreading in the body. tamiflu is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. before taking tamiflu, tell your doctor if you're pregnant, nursing, have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe r

when you look at some of the banks, deutsche bank, biggest exposed. look at some of the swiss banks. bank of america also said that credit swiss and ubs would not be able to withstand the writedown they would need to take if glen corps had an issue. so when you add all those things up, and the price action has been horrible out of the italian banks, i think this is completely justified. the banks in europe are trouble. >> yeah, a lot of those italian banks are trading almost like penny stocks. when we were watching asia, and this is a discussion we were just having with art the last hour as well, brian. many people are watching places like hong con with the dollar peg, or they're watching just the chinese markets in general here. what's really at stake? i mean, for the next move here, where do investors need to be watching? >> you have to watch china. that to me is the biggest story out there right now. what they're beginning to going their currency. they need to devalue that currency. they need to devalue it significantly. they've been trying to defen

deutsche bank sees it hitting 1985 lows. welcomeo

deutsche bank expects a fourth-quarter loss after cost of litigation and restructuring. it is set to post its first loss since 2008. the co-ceo has been trying to restore investor confidence and because growth battered of ties to misconduct. we will hear more from riverfront investment group when "first up" continues. ♪ >> what is true for europe and for the u.s. is not true for china. it is more important in china. >> technology is doing throughout. -- doing pretty well. economyare changing the towards a more domestic consumption and focused economy. this has impact on exports of raw materials and energy and so on. >> there has been a disconnect between what the financial markets tell you and what the real economy shows you. it is extremely pronounced in china. the financial markets went their own way almost unrelated to the real economy. angie: we are joined live from richmond, virginia, by the director of international folio management at riverfront investment group. you have been hearing it around the world. it is china. what are your concerns specifically about what

that would include jpmorgan and would include deutsche bank. ee what the massive revamp does to that business. it certainly affects goldman sachs where it will affect jpmorgan, the largest investment banks in the world which play the largest role in markets. and probably less so the more regional and consumer a commercial thanks, kind of like wells fargo, though that has gotten really big. more along the lines of the u.s. bancorp. mentioned you deutsche, ubs will already on some level retreat from businesses because they are saying we do not like capital requirements and this is costing us too much. and they simply say we will get out of some of these business -- businesses entirely? >> some have gotten out of the businesses for the most part. there are going where the growth is. therefore banks that focus on capital markets a great deal will probably have these headwinds facing them for a while. say the fed isu testing the resolve of jamie dimon and brian moynihan that continue with a plan to be a global universal bank, doing everything across

deutsche bank is also being seen as something that could get involved as well in the ipo. this comes at a time when saudi arabia and aramco are suffering from some of the lowest oil prices in a decade. they attached a 12 year low last week. there is an interest in raising money. the country coming to the bond market to raise money. them to is a way for help it further expand these refining assets in other countries, downstream to lock up some demand long-term. they have done it in china and they want to do it in indonesia. they have also been very successful in the u.s. having refining assets. again, the ipo is really focused on the refining assets at the moment. the 10 million barrels a day of fields do and the oil not seem to be in play at the moment. if they were, that would be creating a company as big as a trillion or $100 trillion company with assets that large or with oil reserves that large. it is still to be seen. we are waiting for further details from the country and we will see what we can get from bankers there to find out exactly what they want to put on the

betty: in europe, prosecutors in milan are accusing six current memberser deutsche bank of colluding world's oldest bank to falsify its accounts. bloomberg reporter joins us now from milan. what is the status of this probe? guest: they have completed their inquiry and are able to keep these key accusations, which would keep these executives in their role, they colluded with the former managers to construct these very complex derivatives off public remained financial disclosure from the bank. they were basically used to hide losses the bank already faced on another transaction at the time. what did these deals look like? lisa: there were multiple transactions going on at the same time. to cover for ag lot at the height of the financial crisis. get to therying to end of the year in a fashion that would keep them going and come up with a transaction that looked as if it was gaining funds and they did so by taking a bet on italian government that. betty: is any of this, any of those actions, is still relevant today? lisa: the banks settled this transaction. it's -- it no longer exists. g

once again in a preliminary statement deutsche bank said it is expecting to lose 2.1 billion euro inevenue expected to be below expectations as well at $6.6 billion. again, these numbers are preliminary and could change. the stock immediately dropping a little bit more on the news and then coming back a bit. still under pressure today. back to you, tyler. >> i was just going to say, the litigation charges, it's so emblematic of the entire sector. all these banks are trading below book value. yeah, because they can't get a return on equity and the regulators are just pounding them consistently. >> well, keep in mind as well, michelle, deutsche bank was exposed to almost every possible questionable activity in the wake of the financial crisis. they have had a number of things on their book and are finally starting to settle. they were exposed in currency and libor manipulation, et cetera. it was expected and is the primary reason the company is reporting such a big loss. >> they have been the poster boy of a lot of those issues for sure. >> mary, thank you very much. as we head now int

we have the chief international economist at deutsch bank. good to see. >> you thanks for having me. >> you say it's not china that is causing the slow down, it is the rising dollar, yes? >> absolutely. what's really critical is to remember if this really were china then it should also have hit your area much higher and the japanese dme much harder because those economies have better trade linkages with china. we have seen the manufacturing sectors in europe and japan do better than the manufacturing sector in the u.s. this tells me that it really is the dollar that's the main reason why the u.s. economy is slowing. >> that's interesting. just explain a little more about how much higher the dollar could go and why. >> the very important to remember with the dollar is that for the last several years it's pretty clear that the dollar went up. in the beginning of the cycle emerging markets, but also relative to europe and the currencies, but more recently with the euro dollar has been moving sideways since march of 2015. now it's the dollar goin

the strategy director at deutsche bank, this $47 trillion, where is it coming from? >> every country on earth has assets invested abroad, china, russia, europe, and that number can be split into two different elements, foreign reserve managed by central banks or private assets. if you include direct investment, $50 trillion. we have great difficulty finding out what the exact number is, but it is a very large amount of money. some of that money is in advanced economies. a large amount is invested in emerging markets. scarlet: a lot of that is sovereign wealth funds, oil-producing countries need to be pulling back, cashing out in order to raise money to pay for upper -- other obligations. >> they are pretty done smart people. are then wealth funds risktakers, and below the risk takers are reserves. there is a huge buffer into you have to hit the sovereign wealth fund. if you're sitting in the middle east and think markets will get difficult for me take less and less risk. your investments are shorter and shorter in duration. the amount of selling you need to do is less

we just looked at results from goldman and deutsche bank. all the talk is also about barclays. still don't have confirmation. something like a thousand jobs set to go in corporate finance and the equities derivatives business. david: right. 10% of the investment banking staff. asia will be most affected. things like m&a, ecm and dcm, and effectively they are pulling equitiese cash business. effectively, they are pulling out of australia, korea, taiwan and malaysia. we go. the next graphic shows you the cuts that took place in japan. was announced during a town hall meeting this morning at 7:30 by the president. 80 physicians exiting the cash -- 80es business physicians. has a mention, exiting the cash equities business. -- 80 positions. they are a sickly setting that business down. so everything from research and bond trading, effective immediately. rishaad: that's quite something. that's a big part of the bank. david: we did reach out the barclays. they may knows. rishaad: let's get away from the bad news. what is the good news? david: they are keeping the derivatives trading.

deutsche bank analyst paul trussel says closing stores is a good move in the long term because it willrove profitability and comparable sales. but he does believe it will be more difficult for walmart to grow sales at the rate it forecast in october. the store closures will impact 16,000 workers in total, 10,000 in the u.s. employees will be given opportunities at nearby stores or receive 60 days of pay. walmart also says it's committed to disciplined growth. and beginning february 1st it will open several hundred stores in the u.s. and abroad but will be careful about where. in trading today shares of walmart fell more than 1 1/2%. >>> citigroup topped earnings and revenue expectations, and that is where we begin tonight's market focus. despite the beat, though, shares of the bank did fall sharply. many analysts say the firm's revenue gains came from a handful of one-time items and called the results soft. shares off more than 6% on this down day to $42.47. wells fargo, meantime, reported a dip in quarterly profit. the biggest residential mortgage lender in the u.s. is also a major cr

with us is the chief international economist at deutsche bank securities.t are you looking for tomorrow? adp, in the face of significant stock market the kleins and china, it is amazing the u.s. economy can produce -- the declines in china, it's amazing the u.s. economy can produce these numbers. if you -- even if it is 200,000, the u.s. economy scarlet: is still doing pretty well. you have this global turmoil at the start of the year. for happens for the outlook january, february, march, given what we saw last year with the august turmoil? >> that's why we try to list the risks we worry about. the most important continues to be the dollar appreciation, , the costead widening of capital for companies has gone up. that means hiring could be held back a little bit. weakand europe with growth, so also a reason to expect slowing. we still saw decent numbers on payrolls. clear that the chinese worries and the selloff and the some market creating uncertainty. overall, the u.s. economy seems to be in good shape. joe: let's talk about head winds. economist consensu

jpmorgan and deutsche bank are in position to win a role if saudi arabia goes ahead with the offering of aramco. they are considering selling parts of the business. david bowie has died at the age of 69 after battling cancer for 18 months. he was one of the most influential music artists of his generation. he was a chameleonlike performer that blurred the line between genders. that is your bloomberg first word news. francine: very sad news. thatafter he did a record one extreme applause. --cks in china have extended concern that the slowdown is deepening. joseph stiglitz told bloomberg that market rules are important. .> it is not a cataclysmic it is a process of slowing down. it does remind us that market rules matter. the way you structure those market rules can either diminish the volatility or increase the volatility. here is ae seeing consequence of some market rules that were not as well designed as they could be. saidine: the ceo of ubs despite market turmoil, the bank plans to double the staff in the country. >> china is not on its own. we have to expect some kind of adjustmen

stiffer capital requirements have prompted deutsche bank and morgan stanley to cut staff in recent months. .et's talk about samsung surging insole this morning. reversing those gains now. it was rising earlier on the taking aof publicists stake in the company. considering a bid for a controlling stake. it would make it the single largest shareholder. will probably see samsung group keep a significant holding in the company. it had a market value of $1.9 billion before today's trading. it owns leo burnett and saatchi & saatchi. gopro was free falling in extended trade. christmas sales were disappointing. 7% of its cutting workforce. a dramatic shift in fortunes for this company. analysts are concerned the company is just a one trick pony . the stock fell 72% last year. people may be starting to rely more on their smartphones to record and share their outdoor adventures instead of spending 200 to 400 bucks for a gopro camera. gopro is now looking to generate revenues from extreme sports enthusiasts. it could be on apples lists of potential acquisition targets but some say at this point they

deutsche bank with an important note on weaker oil.re, the nuance is weaker demand. it is less about supply dynamics. ,his is something to see deutsche bank saying demand growth has been weaker. vonnie: there has been forecast for even weaker demand. inventories are going up, up, up. theave selectable talking price going up to sub 20. with jpmorgan,s a global market strategist, joins us. what is the distinction in your call. every house has a view, there is a sender -- a center tendency, an outlier tendency. what is the distinction of a jpmorgan equity call? gabriela: we think pessimism has gone too far. our call remains for positive earnings growth. the earnings recession call was a bit last year. we expect earnings to come back this year, and barring any sort of weakness in u.s. data, which we do not see, we expect a much better year for u.s. earnings. vonnie: when do you anticipate that starting? will job cuts make that happen through the next couple of quarters? co we personally look at the standard that comes directly from the ind

we are hearing from credit suisse, deutsche bank, morgan stanley. they are hoping to eliminate 1200 jobs worldwide. a lot will be affected in asia. morgan stanley confirmed that they were done with 1200 job reductions in the fixed income sector. european investment banks reducing costs. they are seeing slumping revenues and higher compliance costs, not to mention tougher regulations. citigroup coming out with a note saying european investment banks are expected to see profit wiped out in the fourth quarter. they think that deutsche bank, credit suisse, and ubs will post losses for the three months through september while barclays will barely breakeven. angie: ouch. thanks so much for that. a swiss investigation into a troubled fund says about $4 billion may have been misappropriated. prosecutors are seeking further information. what did the swiss find? >> they have been looking into say for some time and they there are indications that $4 billion may have been misappropriated. sayingsued a statement that they saw for cases involving allegations of c

scarlet: deutsche bank is moving -- losing market share in businesses that want to explain alix: -- expandne of the biggest retailers in europe assembly alarm on the stronger dollar in scarlet: a scandal is shaking up japan and why the economic minister is stepping down. first, let's start with deutsche bank that reported a one billion dollar fourth-quarter loss at its security unit. revenue in fixed income currency 16%.mmodities the kleins the ceo has been scaling back trading so he can poster -- bolster returns. made by then was supervisory board not bonuses to board members for their role as per members this year. that includes people were on the board at the beginning of the year and no longer are and board who were not on the at the beginning of the year but were at the end. bank's cfo spoke to us about the company balance sheet. >> we have our plan and we baked or eventsf measures that we expect represent the burden. we have been explicit about this. morenow there will be litigation costs in 2016 with a clear view on what amount of money is necessary on the restructuring side. we als