deutsche bank has posted a profit. 1% from the year-earlier amid a slump in trading revenue. co-ceo john cryan is shrinking europe's biggest investment bank pledging to cut 9000 jobs. strap dividends to restore market confidence. lloyds has joined the dutch make an posting -- deutsche bank and posting profits. that exceeded the two point -- the 2 billion pounds. antonio auto soria has been under pressure to intensify cost-cutting amid concerns of a slowing economic growth in the u.k.. evans group has reported a decline in first quarter earnings as an engine blitz stalls.- engine glitch shares trading lower this morning. tom and his says the setback should not affect airbus's goal of delivering aircraft this morning. that is the bloomberg business flash. francine. francine: the fed left rates unchanged and gave little additional guidance for the u.s. rate policy. economic development -- officials will closely monitor the world situation. that of course has an impact on credit in the middle east. manus cranny is in the --

is a time for deutsche bank to wind down further, more than they have already done? cause of the crisis was a massively overleveraged financial system, primarily around the investment banking activity, and that needs to change. that has changed, to some extent, with capital rules, and the banks are adapting. the u.s. has been much more forceful, not least because the introduced stress tests. in europe, it has taken much longer, and some of the swiss banks, ubs in particular, have made a lot of changes. in the case of the others in europe, there is much to come. the business model around the investment bank today requires forceful and precise action by the management and the board's. caroline: and decisive management has been articulated, but is it enough? >> if you look at how the market -- clearly, the answer is no. in a number of cases we are seeing better progress; in others, much less. i think the fact that the investment banking part of the model is not sorted out yet. on the other hand, we should not lose sight that we have solid wealth management businesses. w

betty: deutsche bank reaping rewards of its cost-cutting measures, reporting a surprise profit. the banking rules all over? we will discuss that next. ♪ mark: you're watching bloomberg markets. i am mark barton in london, this is the european close. deutsche bank first quarter rising,shares are beating estimates after analysts had predicted a lost. joining us from frankfurt is nicolas. capital ratios down, revenue down, the stock of. how does this figure? nicholas: that is a good question. forexpectations were so low the trading revenue, which is such a big part of deutsche bank's revenue composition, the fact that they did not fall as far as some expected is good. we have also had some very cfo one sounds from the having more time to comply with the capital ratios that regulators will hold the bank to, more time to generate earnings to set aside to raises capital ratios. mark: do investors have faith, belief that deutsche bank will be able to achieve that? it depends on the investor, obviously, but the people we have been speaking to today have been saying they really need to se

scarlet: it cannot be good optics for deutsche bank to be losing a supervisory board member, especiallyy when it reported better-than-expected earnings, partially based on lower legal costs. what does this actually mean for the bank? alison: i do not want to speculate what is going on behind the scenes, but i do think their management is very focused on trying to put this behind them. legal costs, they have said, still remain the biggest question mark. and it's not just legal costs sut the higher compliance cost they have had. they have been hiring a lot of personnel in this area and really had to staff up and get things under control. i think the challenge for isagement and all the banks to help investors feel that they have made the proper controls and proper changes and that they are making the right cultural that to change behavior might have contributed to any of these issues and really just move past and move forward. joe: do you see much more cost-cutting in deutsche bank's future? does deutsche bank still have further to go down that front? alison: one of the most important thin

deutsche bank co-chief executive and other former bank officials were acquitted of charges that theyges in a more than 14-year-old dispute -- a 14 month dispute. the men were cleared on tuesday about 10 minutes ago after almost one year of trial at this munich court. the charges against defendants included josef ackermann and rolf breuer. this is something that john cryan will be happy about because it does not put deutsche bank in the spotlight with a negative light. deutsche bank, you can see the share price down some 3.4%. stay with bloomberg. supervisorh the ecb later. that is in the european close at 10:00 a.m. new york time. we also have a very big week of head of us. here's a snack -- snapshot. merkelmerkel -- anglo posting the g5 leaders today. as well as earnings from apple, capital one, and twitter. the fed rate decision on wednesday as well as policy decision from the boj on thursday as well as u.s. gdp. we round the week off with the rate decision from russia and the swiss national bank's shareholder meeting. a very busy week, so everyone take vitamins. we have a great gu

we are watching deutsche bank. those we are paying attention to and beer certainly watching bba in spain. by 3.2%.bank is up bba is down by 7.4%. we are just waiting for some details to come through in terms of the german numbers. we will put those up for you. we have some breaking news for you. let me see if i can put those on the screen for you. 16,000 jobs down, estimates flat. so, a little bit of softer data coming through in terms of the german numbers. we are joined now out of frankfurt to give us details on what this will do to policy. first of all, is this number is significant surprise? >> well, it is quite a big number. it is a stronger number than expected. a drop in implement rate of 16,000 compared to no change. in germany, the economy remains quite strong, although they have seen some slackening in momentum this quarter. but you have this other factor, which is refugees andriy the workforce. in the long-term, that is a necessity for germany because they have an aging demographic. but in the short term

door to deutsche bank very much at the heart. we are seeing that in capital, one area, where the other the bank has official buffers, to be able to take coupons on some of the divestitures. and we see that particular number taking a little bit of a step that, you know, stocks down from last quarter, where the company is looking at one area and investors looking at today. further cost-cutting, and the legal settlements and cases of the bank is still remaining in. and china's bank, remaining committed to resolving most of that this year. anna: elisa martinuzzi joining us from milan. bob parker from credit suisse is still here. we have a bit now about the european banks, what are you doing for the sector? bob: i think there are some very clear trends. if you look at consumer banking, retail banking, versus consumer banking, consumer numbers holding up very well. use of the particularly with the results from wells fargo and jpmorgan. now investment banking clearly remains under pressure. and if you actually look at the sources of rev

mark: how costly could this be for deutsche bank?has been weighed down by legal issues, desperately trying to put its legal woes behind them. be,costly could this because it is being investigated, isn't it? keri: yes it is. the department of justice is looking into it. the difficulty is a lot of the issues we see happening in banks ,appen at every bank sanctions violations, fines, and all these different things you can guess what you take this might be. this particular case has no precedent. it is difficult to determine what type a punitive actions they will take on this -- what type of punitive actions they will take on this. what other types of legal issues they could be facing. betty: thank you so much. keri geiger a bloomberg news. we are switching gears talking about media and netflix company the world. we are talking tech and all things media with chris marangi. you are looking at a live shot of imf president christine lagarde. sounding more optimistic thing the global economy is not in crisis mode and sentiment is getting bett

databank -- deutsche bank is not alone with these issues. at j.p. morgan and several other banks. is the waynd of see the address that. as they do build up what is called the back office, compliance, regulatory legal issues to stem that. it is all a culture issue on how much the business will respect the wishes and instructions of compliance people if the business is our light, we want to do this risky trade, and they are like, no way. you have got to get to a point where the business is more compliance. david: always good for the lawyers. thank you for being here. next, final thoughts and a look ahead to what else is coming up later today. ♪ ♪ about 24 minutes into the session, let's get you up to us read. , 20 points down on the dow, likewise on the s&p 500, down 0.7%. switching of the board, looking at the u.s. dollar-euro, marginally stronger euro. up oneon treasuries inis point, inflation, rally treasuries to not last long. the big story on wall street is what is happening with bank earnings. wells fargo profits down 5.9%, bank of americ

what does it mean for deutsche bank? >> [laughter] what does it mean for doj deutsche bank?n our best in class. they are almost a rock star and the world of banks, but i think deutsche bank is a very different story. they have had what, four different programs to restate th emselves. deutsche bank is central to the german economy and german government. i don't think there is a risk of them going out of business, but they have to continue through the legal complications they have in terms of their structure. but i think for the marketplace, i am nervous because deutsche bank always has been one of the biggest contributors to liquidity in the marketplace. that is what really concerns me in the interest of deutsche bank. guy: take a guy like mark carney . on the one hand, he knows his job is to get a grip on the banking sector. and then, he will probably see that the bank of england has gone too far. the banks are under attack, we understand that. have central bankers and regulators screwed up? >> may certainly have been very harsh on the banks. fundamentally, this is economics

deutsche bank is in the middle of restructuring under a new ceo. and sanofi is making a bid to buy u.s. bio tech company medivation. sanofi says it first approached the company in march. but its overtures were rejected. sanofi shares down 2% on the news. >> more stocks to watch. texas instruments. xili xilinx beating the street. and paypal also. >> and cheesecake factory, another place that you have to go in the u.s. that you have not been yet. >> i know. is there one in new york? >> i actually don't know. there is one in the tri-state area. i'm sure of that. that profit rose. the restaurant chain saw its 25th straight quarter of same store sales growth, although that stock is down 2.5% this morning. and marriott beats guidance and stuff. weak outlook from o'reilly auto. beat on both top and bottom but a disappoint estimate for current quarterly earnings. >> facebook shares up sharply this morning. it is a bright tech spot in an otherwise dark spot. hard hit the tech sector the last couple of weeks. joining us is ivan feinseth. good morning. -- the

deutsche bank has been trading as if there's another leg lower in crude so actually deutsche bank won'tas much as it should have been. it's within a buck i think of the a 52-week low so i think dutch bank is telling you there's another leg lower. >> not just the european banks. we'll see that in u.s. bank earnings and particularly the regional banks which have more exposure as a percentage of their total portfolio. >> you would certainly expect to see that as well. to guy's point, deutsche bank, i was short that and actually long puts and that was my shortstop i've taken that off. i think it's milked itself down a lot and we'll see more of a pause over there and then maybe we'll see it work to the upside and there could still be some downside. >> coming up are three of the most hated stocks in the market about to take off in the charts you need to see and how can you get in on the acts and later energy stocks are surging with one name particular clocking in as the best performing stock in the s&p 500 today and traders are betting it's about to see even more gains ahead. we'll tell you w

deutsche bank posted a surprised profit. legal expenses dropped. trading businesses performed better. these are the investment led banks. as you can see, all four are in decline. by 20.e is down they're down by 30%. they have 13, comparable to the other two. the trend is very clear. the spanish lender is falling as much as 9%. today, it is the biggest report since march of 2009. they had a 54% drop in profits. a lower trading revenue. the one-time sale was never needed. very quickly, let's finish with the lloyds banking group. it was the largest mortgage lender. yes, that was a bead of the coming cost. falling.as these are the big u.k. banks over the last 12. theou can see, lloyd is best performer. still, it is down by less than .92%. excuse to bring out the colors. betty: the colors, the line, everything. it's get the first word news today. bonnie news has more. came upnorth korea short in its attempt to file ballistic missiles. it was a week before the regime heard the first ruling party conference in less than six years. is expected to reach u.s.

jonathan: coming up, a new call on deutsche bank that you do not want to miss. it down, on "bloomberg ." ♪ carol: this is "bloomberg ." francisco blanch is still with us. , linked in coming up ceo, reporting earnings after the closing bell. we have lots to talk to him about. first up, matt miller. of calls, starting off with banking specials and they did not like what they saw on deutsche bank earnings and they cut the shares to underperform from market perform today. down to basically a solid equivalent. they reported a 58% drop from profit last year and continue with business overhaul. to be fair, deutsche bank was expected to post a half $1 billion loss and they posted a profit. has a drop in u.s. crude production to an 18 month low and has caused downgrade. patterson was cut to a whole to a by with a first-quarter loss. kirby was downgraded to a market perform from performer. first-quarter sales fell short. and oil explorer whiting petroleum was cut to neutral from buy on the u.s. output drop. jonathan: we touched on this earlier, francisco, but a lo

jpmorgan, focus on deutsche bank struggling as well. the banks, and in particular, can you buy thank leader jpmorgan? tony: i think you have to. so many people want to go away from it because the yield curve is flattening. and 1994, 1995. ,oth of those flattenings without recession, you had an extraordinary outperformance of the banks. tom: looking at challenges for one or two years, and it is suggested that the major banks will mint money 3, 4, and five years out as well. statement in the empire today. coming up, we look at the new york state primary. they can murphy will join us from our what -- our washington bureau chief. she is in new york, as are ms. clinton, sanders, trump, and ted cruz. ♪ francine: i am francine lacqua in london. tom keene is in new york. let's get straight to the bloomberg business flash with nejra cehic. nehra: investigators are looking volkswagenvestors -- investigators are looking into -- codesions scandal work -- code words were used to turn off emissions controls when the cars were on the road. there will p

involved are very rarely in the spotlight. 28 banks from germany were also mentioned, including deutsche bank. and they are said to have either created or managed around 1,200 offshore companies. many of those companies are, according to the investigation, still active today. >> and do we know exactly, what are the banks doing? and maybe more importantly, what is the german government doing about this? >> well, two of the banks denied any wrongdoing. in fact, deutsche bank said it verified with whom it works, and it also tries to comply with all rules and regulations. the german government also reacted today, saying that it hoped that this scandal would improve efforts worldwide against tax fraud and money laundering. germany has been at the forefront of these issues. and the finance minister will discuss these issues in the upcoming i.m.f. and world bank meeting in washington. >> our political correspondent here on the story for us tonight. thomas, thank you very much. and here with me in the studio is max. he is the program coordinator for financial integrity, with transparency internationa

deutsche bank last month came out and said they think trading will be down for the year. all the banks who have said anything at this point have said the first quarter was particularly tough. the first quarter, at least in fixed income, is typically when -- typically the best quarter of the year. that is not a great start for the year and you see that with equities as well mark:. march was not as bad as january or february. a grim couple of months in the first quarter. michael: you saw the most volatility in those quarters -- in those months. even barclays said march was not as good as a year ago. it did not seem -- maybe the volatility will let up a bit but the activity was not there. mark: it was not just nomura that said it is reshuffling its overseas operations. citigroup saying it is cutting staff in london. what's behind that? michael: nomura is more of a secular move. i would say citi is more cyclical. citi has talked about the first quarter being down. if operations are down you have to cut costs somewhere. i think this is more of a reacting to the environment and

[speaking foreign language] >> a surprise from deutsche bank.e speak to the cfo later on cnbc. >>> and facebook proves to be the only one not in negative territory. sending shares up by over 9% after hours. >>> welcome back. a look at u.s. future this is morning. taking a negative picture that we've seen in europe already this morning. markets low by more than 1% in the uk. the french markets, also the german. that feeding into the u.s. markets implied open lower by some 16 points for the s&p 500. the dow lower and nasdaq as well. a choppy session yesterday. relatively unchanged after the fed no change decision. and apple was the key drag on the nasdaq yesterday in particular. wait and see how that, see if we can get some kind of bounce back in the session today. >> let's talk about one of the bigger corporates we've had an update from. core profits in airbus slightly exceeded expectations. despite a slump in earnings. they warned of challenges facing production and delivery of a 400 and military aircraft. saying it is turning out to be, quote,

vonnie: in germany, the ceo of deutsche bank and four former bank employees have been acquitted in araud trial. the charges were linked to the media empire. before closing arguments began, the judge said prosecutors had failed to prove their case. phillips leading toward having an ipo of its lighting business. it is the first time they said they may prefer an ipo to a private sale. lighting units had more than $80 billion in revenue last month and the -- last year. one of the biggest shareholders in all of japan is the bank of japan. bloomberg crunched the numbers and found that it is a top 10 shareholder and 90% of the nikkei. distort valuations and undermine efforts to improve corporate governance. that is our bloomberg business flash. francine: president obama is in germany for a second day, meeting with angela merkel. we are expecting the president to speak shortly from germany. zuczkae moment, tony c joins us from berlin. how much of the focus is on tt ip? quite a bit of focus on the u.s.-eu trade deal because it is hard to pass. ,t is hard to pass in the eu certainly not very s

and you have the about-face at deutsche bank, real pressure. at story are they going to want us to focus on? michael: focus on what they can control, typically the cost. showing that cost down. even if the healthier banks, like a jpmorgan, there is a lot of pressure to show some progress on cost because there are 70 things they cannot control right now. the banks are under pressure even before the market volatility, because there are these existential questions of, can they boost returns in this environment? get back to a normal operating environment? and then you have volatility on top of that, really adding another layer. anna: patrick, when you look at the banking sector, the headwinds and the outlook for the first quarter, fallen by about half year on year. bond issue are down. mergers at 80%. this was not a quarter filled with a lot of confidence in those areas. patrick: with negative interest rates compounding all those things, a very difficult environment to make profit. you cannot maintain a previous levels. investment banks, everything

we talk about deutsche bank, u.k. banks, they all have troubles.ecause of valuations, is there something that you think looks like a good deal? >> interesting question. so many banks are so troubled. one could argue that the bank, the large banks in europe, the one that looks best place seems to be lloyds bank in the u.k.. it got to where it needs to quicker than everybody else and it has a focus strategy. now i can just tweak that strategy -- it could go into fixed income. they could boost their margins there. --ing rates in the u.k. francine: at some point, fixed income has to turn around. or does it? >> fixed income will turn around. it will go back to 2009 levels where we had that big spike. it is never going back to the precrisis levels. but yes, investors are more willing to take risk, there will be more going on, all the hedging that has to be done. it will come back. the question is who wants to be in that business, and do you have the cost base to be in it most cost-effectively, given the extra capital you have to have? francine: what kind

deutsche bank is being investigated by prosecutors and regulators. legal fee in relation to something like this? is an unprecedented issue. usually with a wall street bank, all of them are facing the same violations. basically go through the same process. this is unprecedented. deutsche bank is the only bank being looked at for mirror trading issues, so it is difficult to tell what the punitive actions they will put on the bank. scarlet: can we connect the dots mirror trades and deutsche bank reducing its operations in russia? guest: we cannot definitively do that but after they basically reported that this was happening, they scaled down significantly their russian operations. linked publicly to that in there is some speculation that because banks a lot of economic hardships because of the economy and oil that it would make sense there ask to wind down well. there were probably multiple factors that led to it. alix: do we know who is at fault? guest: that is the next step. it shows how these traits basically got through without being properly vetted

deutsche bank's co-ceo has been acquitted in his trial over the kersha case. the other former deutsche bank executives on trial have also been acquitted. they have been accused of giving false testimony. so acquitted in the case. >> loads of you have been writing in during the show. it is always nice to hear from you. one writes and say, the market fr is quite bullish. i hope oil prices don't get a relatively good recovery. i was surprised on this call on high bond deals but think equities is a better investment. beth, great job, thank you very much. it will be interesting to see if feds language in the company statement this week, right? and also whether or not oil can throw a span in the works if we continue to see recovery. >> we have data in the first quarter in the u.s. as well. it's how they continue to temper market expectations versus the data. does it get ahead of them is the key? >> thank you very much. that's it for today's show. we'll be back tomorrow, same time, same place. have a lovely afternoon. bye for now. a lovely morning, still morning. >>

the obvious question is what is the voice of -- what does deutsche bank do? plan for european banking to compete? it has been mostly about cost-cutting so far. you're starting to see some bigger chunks, some big job cuts within deutsche bank and credit suisse. trailing back businesses to a significant degree trying to bring up our italy's because that will be the ultimate way that they compete with u.s. firms. tom: i look at the elephant in the room. m&a activity in europe. where do we expect that? 2020? michael: it has been slow to come around certainly. we have seen across the globe in the first quarter things were down. rbc coming out and saying rbc is down 30% year on year in the first quarter. they are expecting a pickup in the second quarter but not nearly as much as we had last year when you had a record year in mn day. one more thing that is dragging the bank. vonnie: we have notes coming out. 135 jobs today. the likes of kbw saying european .anks adopt syntax i want to speak to sally about -- you have a digital online platform at the moment. this is

we've already heard from jpmorgan, citibank and deutsche bank and that disastrous quarter that included and february from jefferies, we know that volumes are bad, capital markets activity is bad, regulation is a real thing right now, we know that leverage is down. so you know, it's not that investors are particularly excited about bank stocks, which makes it kind of a difficult trade when you're thinking about it, and then you throw in the context of the federal reserve and what is the rate policy, because one of the biggest issues for the banks right now is that net interest margins, and they really need to see that yield curve do something other than it's done, which is lag. >> it's not just banks, it's asset managers. >> right. >> it's credit card companies. it's anything in that space. and while reits have done well, which are a part of the general sector, those will be broken out next year so we'll have 11 sectors, but the banks are terrible, they're worse in europe, terrible in japan. hsbc, new shocking lows, bad space, and i would be short with you. >> to the point, though, if we

fact if things really get bad because there's beta here and these can make shocking new lows as deutsche bankreatening to do and as hsb is doing. >> it's not that you're advocating against the trade when you say it's not worth the capital, but if you're going to do it, do it this way. >> okay. if -- if there really is problems, the second biggest sector by weight in the market and it's the lifeblood of the system, and the way they are acting, not good. >> right, right. >> just say this, and we've talked about it a lot on this desk. jpmorgan, talked about the dimon bott tomorrow and the company announced the $2 billion buyback after he bought $27 million worth of stocks and the stocks act like garbage. won't close above 60 which was a really big level for more than a couple of days and the last couple of months so i think relative underperformance, wells fargo's chart. you and i talked. toys a disaster. want to sell rallies and defining your risk and placing a bet on what you're willing to do the way i'm doing it i think that makes sense and you buy yourself some time. >> number of names in th

and we heard about it already from jpmorgan, citi bank and deutsche bank and the disastrous corn theirjanuary and february from jeffries. we know that volumes are bad and capital markets activity is bad and know that regulation is a real thing right now and know that leverage is down. so, you know, it's not that investors are not particularly excited about bank stocks which makes it kind of a difficult trade when you're thinking about it and then you throw in the context of the federal reserve, and what is the rate policy. one of the biggest issues for the banks right now, is that net interest margins, and they really need to see that yield curve do something other than it's done, which is flat. >> it's asset managers. >> right. >> it's credit card companies and anything in that space, and while reits, of course, have done well and are part of that general sector they will be broken out next year but the banks are terrible. terrible in europe and worse in japan and hsbc, new shocking lows, bad space and i would be short with you. >> to the point though that if we do see a potential bum

nowhere near heading back to normal for deutsche bank. francine?hat is an important chart. this is another important chart. the white line is china, the foreign exchange settlement, and the blue line is china' balance. it flipped over since march of 2014. the gap widened a couple of months ago. dollar demand in china is yuan is still the weak because people prefer to buy foreign-currency. to eight orurn seven or 12 or 14 teams of jeffrey sachs, one of our few economists who can truly do that. he is here for earth day. with columbia university. he has been out on the stump for mr. sanders. he is a liberal and proud of it. what is the difference between a liberal and a progressive? jeff: i don't know anymore. the term is used completely differently in europe from the united states. liberal in europe is free market, liberal in the u.s. tends to be you want more government intervention, so the term is a pretty confused term. tom: presidential candidates moved to the middle. does secretary clinton have that ability, or is she seen so much like the senat

the latest quarter, because of weak demand and win resorts rising 2% in extended trading, deutsche bank downgrading its rating on the stock earlier today and raising its target price on the casino operator. nicole: it is known as the pig book in washington, the annual report on government waste and you won't believe where your tax dollars are getting sucked away like funding programs to study shrimp. >> abstain from pork. lauren: we will be right back, stay with us. that was cute. nicole: let's get you caught up on happening now. john kasich picked up a key endorsement in new york, the all-important primary approaches and donald trump's campaign manager will not be charged in connection with the incident with a reporter. yesterday jpmorgan chase earnings boosting the dow to a 2016 high. we get more big bank earnings this morning. how will they affect the stock market? kobe bryant ending his 20 year career in storybook fashion. we will tell you about it, stock market futures ahead of "the opening bell," thursday morning, dow futures giving back big gains, dow 37 points, nasdaq futures do

endo pharmaceuticals is undervalued according to deutsche bank.re saying stocks ike hess are a good buy. betty: thank you. we sink further into big market highlights, we have that stock seen. what struck out at you today? oliver: we are getting a nice little rally in the last two days despite going into the earnings season. everybody is going to be pretty bad in terms of profit. what is issuing the point, a plan in my head by experience, it makes sense if we can it sharply what is happening the first week of earnings for the rest of earnings season. we have a lot more time to go. you look what happened so far, it is monthly financial companies. those reporting, even though a lot have been reporting negative processes, they have been beating low estimates. and that is helping markets go up, they are all up 4.5%. what is interesting about that, you look at all the sectors going into this earnings season, we are expecting negative earnings growth. all of the sectors had rallied going into earnings except financials. they have done very poorly, down 7

officially, i think deutsche bank does not expect too much. but they will do something.terms of encouraging bank-lending, and they have an opportunity to do something quite dramatic. up it as much as $20 trillion, they could also spanned. they were rumored to have been during -- doing that earlier. more than double what they have committed to. if they do these other things, they could certainly promise to look at further things in the race. lot, setting do a up for more moves in the year. ofrlet: there was talk something maybe along the lines awe.ock and all -- scarlet: dominic konstam, you are staying with us. we will talk about a new debate around an old metaphor. ♪ live shot in washington, waiting for speech at the hearing. [ soft music ] e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. show show me more like this. s. show me "previously watched." what's recommended for me. x1 makes it easy to find what blows you away. call or go online and switch to x1. only with xfinity. get the firs

deutsche bank downgraded to hold from buy as the coffee chain launched its new loyalty program. the program making many reports customers angry because there were issues in u.k. rewards based on how much money you spend. csx rising nearly 2%. the railroad company's first-quarter earnings would expect patience of the revenue fell from a year ago. juniper networks tumbled more than 7% after the network maker projected lower than expected orderly profit and revenue. lauren: coming up is because the coal industry, the white house and congress have been throwing money at the solar energy industry but it's not enough. gerri willis at the troubling story. 40,000 verizon workers set to walk off the job moments from now. we will have an update and will have an update and tell you how the strike could affect customers. checking in on u.s. stock market futures ahead of the opening bell, another good day after 164-point rally yesterday. futures gain another 92 points. nasdaq futures u by 34. you are watching "fbn:am," your first look at money markets and breaking news. ♪ if you need advice

people, but that is what we are seeing, not the drama of 5000 or 10,000 liked her to bank -- like deutsche bankal in london right now, isn't it? is, tom. it there is noise that other banks will relocate some of their top -- they are planning to cut staff in london. they are trying to trim costs to compensate for low trading revenue. tom: this on the back of the nomura announcement later today. to the morning must-read. he will join us on friday, kenneth rogoff. he has been a huge supporter over the years of all "surveillance." ken rogoff -- tom: this is one of the strongest essays i have seen from ken rogoff. professor currie is with us from goldman sachs, folding commodities into trade. one of the big things here is that they have to want our exports. when you have commodities flat on our backs, brazil does not want our exports, kazakhstan does not, indonesia does not. jeff: that is a big issue in new -- that is a big issue in u.s. natural gas right now. tom: is it going to happen? jeff: you have seen one cargo, and where did it go? brazil, of all places. the demand for lng is going to be much

deutsche bank will maintain its people at its development center. and for television, $100,000,000 with a venture, and scientist stephen hawking and mark zuckerberg may find something unexpected. initiative toc focus on space exploration and the search for life in the universe. the commission hopes to launch thousands of the spacecraft "nanocrafts" with the goal of reaching that system in 20 years. global news 24 hours a day in more than 100 50 news bureaus around the world. i am mark crumpton. carol, back to you. nks, and as, tha julie said, the crew rally is helping markets when it comes to corporate learning street expectations for earnings are at their lowest level since the aftermath of the financial crisis, so i have got a question. is the worst over? or are we at the start? with us is the global equity strategist at hsbc. nice to have you with us. callt to talk about your with emerging markets, and let's talk about what is going on in the u.s. profit action. are we headed for this in your view? >> i think people should be focused on this boun

still ahead on bloomberg television -- drama in the boardroom at deutsche bank. y one board member is stepping out early, plus we're breaking down the health of european banks as erges season continues to roll on. ♪ mark: i'm mark barton in london. betty: and i'm betty liu in new york. this is the european close. it is time for the bloomberg business flash, a look at some of the biggest stories in the news right now. shares of exxonmobil are rising. they posted their smallest profit in 17 years due to falling prices for sandoil natural gas. that was partially offset by a big jump in earnings from exxon's chemicals business. earlier this week, standard & poor's revoked exxon's triple a credit rating for the first time since the great depression. roby corporation has agreed to buy tivo, one of the pioneers in digital video recording. the price tag, $1.1 billion in ash and stock. rovi acquires patted incidents for set top boxes, just as competition for those devices heats up. the company will adopt the tivo name. and americans kept their wallets in their pockets last

intricately, deutsche bank says you should buy the stock on weakness. deutsche bank is also saying that near term, there's an unfavorable set up in the stock knowing into earnings. it seems as though the focus is more on that part of the commentary. general electric is falling as well, pristine downgrading that stock valuation and underappreciated risk for the company, including a longer downturn in the oil and gas sector. cisco and jpmorgan rounding out the top four drags we are seeing today. scarlet: stocks you are mentioning, falling after reaching the highs of the year. volatility was the story of last week, with a lack of volatility we saw. julie: even the volatility fix up a little bit today, it's still a pretty low level. printleague jovially in as a good story out today, looking at volatility and what has happened and how it is formed a love investors. x, this is fix -- vi the three-year chart and the three-year average, you can see right now we are below that level. andtility, after spiking seeing the return of volatility here, we are now once

. >>> deutsche bank is fall to third from fifth.itigroup and bank of america are ahead of the german bang. jpmorgan and goldman sachs kept their first and second positions with the trading and euro in particular taking ahit on deutsche bank members. >>> now, in anticipation of a potential brexit, big british firms are delaying deals. another finding from the same survey, two financial officers are in favor of staying in the european union. the survey also reporting that the june 23rd referendum representing the single biggest concern for businesses. seems like there's growing momentum behind those who say we could potentially want to leave the eu. >> i think the latest polls show the exit poll show gained a bit of ground. and it's some of the issues that cfos currently pointing to that makes people unsure. june 23rd is the day to watch. >>> greece has begun its new controversial program to return migrants back to turkey. the first group of 130 people were sent back across the aegean sea today. it's to put a halt to the crisis that's

getting ground at deutsche bank.our call of the day and we'll debate it coming up. ♪ in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov >>> you did not even buy $26 million worth of this stock. but you bought jp morgan on the same day. >> i did. any time a ceo is backing or putting his money where his mouth is to me that sends a strong shifting to the marketplace. we see how they're getting tighter and leaner focussing. it's a longer term play. it's going to continue to be a struggle but the positions right now, particularly jp morgan is going to lead to significant out performance. >> it has to be a longer term play. one w

back here we talked about deutsche bank being the next lehman brothers. ght correlation. so it stands to reason that if yields go higher, european banks go higher. and a lot of things can go higher, like japanese banks. once again, just the other side of the same coin here, very strong correlation with the japanese banks which are really at the heart with the negative interest rates and stronger yen. you remember that story. again, strong correlation here. if the yields go higher, japanese banks go higher, too. that supports all of us. now, let's bring it home. goldman sachs you talked about earlier, we're into resistance here. maybe not the greatest entry point for a trade. but you've outperformed the s&p by 10% off of that low. once again, higher yields, better for the banks, better for the rest of us with a 16% weight in the s&p. this is the tlt, just the inverse, bond prices. you can see the lower high in place here. it tells me you're going to get a breakdown. lower in price, higher in yield as rick santelli might say. finally, if you're a seller of t

things are looking up at deutsche bank, the german lender reported surprise profits of 200 36 millionos for the first three months of the year. down by 60% last year. better than expected. suffered bad markets at the beginning of the year. the delays in delivering the aircraft caused by engine issues would have a significant effect. shares of airbus trading down within 6%. artisans and technicians into protests to occupy several theaters in paris since the begin. a deal is been reached to avoid cuts to the special income support. the system is facing a huge funding shortfall, but workers are resisting cuts. >> a breakthrough that has led to police german protesting workers some theaters in paris. and technicians have occupied several theaters since sunday, demonstrating against cuts to their special income support. they interrupted shows like "romeo and juliet." but the protests may be over now that unions have reached an agreement. includingt workers some, television and theater benefit from a system which supports their income when they are not working. unlike most french workers wh

. >> ask about his deutsch bank loans and how much he owes deutsch bank.can get a straight answer. >> let's go back to the state of the economy. it's striking to me that barons, a business newspaper for investors that comes out once a week, they compared hillary's economic plan to trump and said which one would be better for the economy? overwhelmingly they came out and said hillary would be better. i've talked to investment groups, who do you think is better for the economy, for the markets? overwhelmingly it's hillary. barons is saying, look, his economic plan will raise the deficit by $10 trillion. he's not able to pay for that. he wants to get into a trade war with china and with mexico. what they are saying, yeah, you will get a recession. if you elect trump, you'll get a recession. that's what they are arguing. >> but on trade, i think both he and bernie sanders have hit a real nerve and have rightly identified that globalization has not been moderated in a way that has benefited american workers. >> okay. i want to talk about the democrats now. bern

the situation for credit suisse and deutsche bank is very different.hey will not look exactly like what hours looked like because they are different organizations. erik: how are you taking advantage of the situation? andrea: the advantage that we have at this point in time is that we have clarity, stability, since of purpose. in a market disruption, in a market this location like we are aning now, that is advantage, and we need to try to take advantage of it. erik: where are they most vulnerable? andrea: i would not just look at them. i think the whole industry is going through systemic change. i have never seen such a questioning of models, strategy, business practice returns in investment bank, probably since the start of my career. as everybody response to this question, everybody is taking a number of different decisions. standpoint, we hope we are making the right decisions. if we are, i think you will see ubs progress very decisively forward. erik: you talked about the challenges presented by the regulatory environment here it are you choosing to

german banks allegedly took part in this, including germany's largest lender, deutsche bank. they are holding investigations, and they expect to hear from authorities. >> we have to investigate individual cases, why they have got people having accounts offshore. we need accountability. if you are a rich individual, and you are not saying her taxes because you are having a money offshore, it is fundamentally unfair. also, we do not have the money for public services. reporter: they say setting these up are not illegal, and business activities are structurally -- strictly regulated. it comes as little surprise. the german commerce bank agreed to pay fines because of dubious business dealings in panama and luxembourg. javier: that is all for now, and i will be back later with business news. anchor: new president of world soccer's governing body is getting involved, according to wednesday's edition of the friday paper. he was only elected back in february after valley to clean up the sport after color -- corruption scandals rocked the organization. they say there are tv rights co

we get deutsche bank later on the 28th of april. deutsche bank could see them tumbled 28%. a bruising even though jp morgan did better than expected. anna: let's bring alexis back into the conversation. find much to like about the banking system right now, do you? believe it is much more secular. we intend not to invest into many banks. we believe it is difficult to value banks and understand them. they are very complex animals. s don't understand what is happening on their own trading floors. , there are threat billions invested. they're very interesting companies. they will grab animal attack the high fees you have in certain areas of banking. he rather focus on that. like companies with peer-to-peer lending to are extremely aggressive. companies investing a lot and software, and cutting costs. manus: there is one perpetual story but facebook. hiring a former darp director. zuckerberg is on a mission to monetize when you hit a billion users on a product. he is also on a mission for our wallets. why are you not more charmed by facebook? aexis: i think facebook is great com

deutsche bank -- asset bubble.tsche bank is down 2% since last i checked here -- i last checked. the panama papers and how the banks are going to react. guy: you can enjoy a line to what you just talked about in the terms of the bond market. the curve we continue to see. that extrapolates out to japan. you can see the extreme flattening we have seen their. -- we have seen there. prices going up, yields coming down. enjoy line back to the bank and say we deal with this difficult shape of a curve. is this the right call back to john haynes point? how we work our way through understanding how this is going to fit together. you can draw some very clear lines in some these stories. let's talk about one of the main risks down there. that is the political risk. airbus says it is strongly supporting the u.k. remaining within the european union. a letter sent to employees that represent around 11% of the workforce. the company warned that a brexit would not be helpful to its operations. let's bring back in john haynes. help

according to the hill, clinton was paid $280,000 in 2014 for a speech to deutsche bank, $325,000 for a speech to the national automobile dealers' association, and $225,000 for addressing general electric. in one of the most closely watched legal cases of the year come the supreme will hear arguments today on whether president obama overstepped his authority when he took unilateral action to protect millions of undocumented immigrants from deportation. the case pits the obama administration against 26 states led by texas that filed suit to block his 2014 immigration plan. saudi arabia is threatening to sell off in u.s. treasury $750 billion securities if congress passes a law to allow the families of the victims of the september 11 attacks to sue the saudi government for any role it may have played in the attacks. the kingdom's threat comes just ahead of president obama's trip to saudi arabia on wednesday. the obama administration has lobbied congress to block the bill's passage. the pentagon has transferred nine guantanamo prisoners to saudi arabia, bringing the total number of remai

george saravelos from deutsche bank. up next, it is battle of the charts.ou in a moment. ♪ guy: 22 minutes into the market session. it is time for the battle of the charts. cap i'm sure has a fantastic one. let me talk you through what we think my chart is telling you this morning. then we get george saravelos' view on all this. this is my chart, george. the week has changed sentiment story around china. if we believe the recent risk on rally has been driven by people praising out the risks on china, maybe you should start taking a look at what is happening. and u.s. big china etf interest in that etf. interest has started to climb. we've seen a kick down where other markets have been rallying. we're not done with china yet would be my line, caroline. caroline: perhaps. but today is a story about japan. that phenomenal story coming out of bloomberg news about the fact that japan is potentially looking to stimulate bank's to lend with negative rates. i tell you why. that tragic event that happened in april has really hit manufacturing hard, the earthquake ad

you heard it from deutsche bank talking about this year is probably going to be down because there wasch turbulence at the beginning of the year, and barclays today saying that investment banking in april was not as strong as in march. you are seeing some slowness in that area, and m&a drives a lot of follow-on activity. certainly, that will be a headwind. guy: why are we so obsessed with the investment bank? the investment bank is old news. in some ways, are we looking at the share price popping? this is confirming a trend that the valuable the retail business looks pretty good. the investment bank is an issue but there are parts of this business and they are becoming clearer in these numbers. they're starting to really come through. >> the reason that the investment bank gets some much attention is because it dominates the capital, which drives the roe. that is why i get so much attention from investors. a lot of these other businesses are star performers. areeley c -- barclay card what investors are excited about. if you can get the investment bank cannot only be a growth driver, bu

deutsche bank has significant business in the united states.said he would -- the governor said he would expand the law, restricting transgender bathroom access. within the last few weeks, resistance to the law has been growing. bruce springsteen canceled a weekend concert in north carolina to protest against the law. >> it will hurt them economically, that is the only thing they will understand. if you hurt them economically, they will do the right thing, morally. reporter: celebrities are taking a stand against discrimination. this week, canadian singer bryan adams refused to play in mississippi, after a law was passed that allows people with religious objections to deny wedding services to same-sex couples. helena: watching a movie with friends has always been a popular pastime. of course, the experience is even better if you catch the superheroes on the big screen. that seems to be paying off for the movie business, reporting its highest ever earnings, after sales revenues increased by more than 5%. >> stand. reporter: it is movies like "cap