talking about shareholder anger at deutsche bank. reporter: a lot of bad news around deutsche bank.ls and huge losses. investors are fed up with germany's biggest lender, venting their anger at the annual general meeting in frankfurt today. the new chief executive is taking the heat. he admits the changes are demanding, but they will be worth it. one decision, shareholders refused a change to the system of bonuses for the top management. reporter: the protests outside deutsche bank may not quite be on the same scale as previous years, but that doesn't mean shareholders are not upset with management. there is no dividend. how can you be happy with that? wherever there have been financial problems in the world, deutsche bank was involved. last year, deutsche posted a record loss of 6.8 billion euros, caused primarily by setting aside reserves to pay its horrendous legal bills. a lot of people are asking just how the bank plans to actually make some money in the future. >> the shareholders need positive news from the report. we have had five years of agony behind us, and now we need so

deutsche bank is still investment grade. the questioning is if you're on the outlook -- we have seen with credit suisse before, rather than any kind of critical view if you want other banking sector right now. that said, as you rightly pointed out, the business model for investment banks is challenged. probably -- you need to be selective in terms of the kind of insurance you will invest in. trading have deutsche incredibly low. is there more bad news they could push it further south? to be honest, investors are priced in most of what they expect to be on the bad news front? most one of probably the fixedred toward investors income. you got a lot more returns and a lot more attractive risk reward, buying bonds and equity. there is a very big question mark in terms of how reliable using book value as an indicator of the true value of these institutions. guy: james gorman of goldman stat -- of morgan stanley says things are going to get better. is that your view? q3,1 was just horrible and q2 are better, -- jean: it is differen

deutsche bank is a little more dependent than many of its peers on investment banking.e firms have come if you take ebs as an example, they have shrunk their investment bank and try to emphasize wealth management. deutsche bank's wealth management business has been growing, but it's not as substantial as ubs'. i think they are playing the hands that they have been dealt. shery: peter, thank you for your time. it is time now for the bloomberg business flash, a look at some the biggest business stories in the news right now. it may be a big spring selling season for american homebuilders. new-home sales rose 17% in april to the highest levels since the start of 2008. that is well above expectations. the median sale price was almost 10% in the last year to $341,000. apple has run into a roadblock to boosting its presence in india. tim cook went to india last week to push his best-selling iphone. according to people familiar with the matter, regulators have ruled that apple must comply with local enforcing rules to sell products in india for its own stores. that means apple

deutsche bank certainly has a lot to prove at the moment.take would be that it is now a matter of study, gradual implementation of many of the steps they have outlined. at the heart, it is essentially a cost-cutting program, making progress on that, which has not really been a strength of deutsche bank, i would say the cost control would certainly help a lot. i thinkame time, and that's where this earlier comment comes from, the concern, if you cut cost too much, too aggressively, do you impact your franchise? revenuehen impair your generating ability? that will be the strong balancing act, especially in the markets. valentin -- francine: balancing cutting the fact without cutting any of the muscle. let's go to frankfurt and get an update from matt miller on the ground. john cryan saying that accusing the bank of hiding something is simply absurd. will all these rumors be put to rest? i'm not sure those rumors could he put to rest today, but john cryan does have a chance to put his case forward to shareholders. shareholders are angry, but th

we got news out of deutsche bank. new york post focusing they could be the focal point of an investigation into u.s. treasury sales. are there more appetizing banks to be looking at? daniel: you will see more credit growth in the quarter countries like germany. in spain, it is still negative. you have to wonder about underlying recovery in the quarter countries and in the u.k. -- in the core countries and in the u.k. daniel, i wonder how much risk is amplified. we are talking about assets ranging from risky in china to very risky as far as italian banks and spanish credit is concerned. this week, we have an opec meeting. we have an ecb meeting. report june -- may jobs out of the u.s. aren't riskier assets more risky now? hand, we just had the recovery in oil which has helped equities have more optimism on china. that is good. at the same time, you worry about the market and investors in general becoming more complacent. the risks we have had in our minds in january and february are still there. in thewhat is happening

deutsche bank executives are set to face investors in a few minutes time. ecision from the south african central-bank. we then get updated on the russian gold and foreign exchange reserves. them, william dudley is due to deliver a speech on macroeconomic trends. that sounds interesting, it is more interesting in light of the fact that we had the fed minutes last night. that is changing market pricing this morning. bayer shares are also changing market pricing this morning. they made an unsolicited bid for monsanto. nejra has only need to know. nejra: the initially heard from monsanto that it had received an unsolicited offer from bayer bayer has confirmed that, but we do not have financial details. we do know that monsanto's market value is around $42 billion. as you say, we have seen bayer's stock price tumble on this. this coulde saying be because a large purchase company'sh on the credit rating. we reported on the possibility of this deal and there was speculation that bayer might have to sell some units to fund an acquisition of this size. interestingly,

deutsche bank drama. can the bank appease investors again this morning?ve in frankfurt. ♪ anna: welcome back. 7:19 in what looks to be a fairly overcast london this morning. futures will be down by around 6/10 of 1% at the start of the trading day. also from what the fed has to say. a: 19 in frank -- age: 19 in frankfurt. investors gather in frankfurt amid plunging revenue and the need, possibly, for new capital. last year's meeting saw shareholders event there frustration about the management. matt miller is in frankfurt for us with our german finance reporter. matt, let's come to you. what is in store for the co-ceo, john cryan today? cryan willnk john not have such a difficult day, since he is new here, he has got to be the guy. investors have to stick with him if they want any chance of survival. nick comfort is about to spend the next 12 hours with shareholders who have lost half their money in the last year. what are they going to be able to do about it? >> today they can voice their complaints to the previous management, the chairman. and -- and th

deutsche bank seems to be a large restructuring unit. ere does the banking business that's where is the banking business of the future for this company? calm compared to last year. , james had a speech and overall, the was a crisis mood in the auditorium. cryan's new, he has to cleaned up. the management. --t she has to clean it up he has to clean it up, the management. win over thean doubters? it does seem like he made a positive impression on not ,nly the large shareholders some of whom we just heard from, but definitely from the smaller shareholders as well. the germans have traditionally urine for a german ceo. yearned for a german ceo. a swiss man took over. there have been concerns that the bank was not as worried about germany. , who isohn cryan british, spoke very good german and refer to germany as the homeland. the most positive thing by far they said to shareholders today, they will not be needing a capital raise. that has been the concern for the big investors. they raise capital three times for $22 billion and the market cap

revenue trading is huge at deutsche bank. money clearly the big banks like j.p. morgan chase.spect also you will see good strengthen the credit card companies -- strength in the credit card companies. morgan stanley, golden sachs -- goldman sachs. lisa: deutsche bank had to come out this morning saying we are committed to our securities business. do you think they do have options to improve their revenue? david: all european banks are in top shape, quite frankly. -- tough shape, quite frankly. they have been slower to fix the balance sheets and adjust their strategies. some are a little further along than deutsche bank seems to be. they can fix their business. it will take a little while. is it not in the price at deutsche bank? david: there are better opportunities and other places where you will get rewarded. ubs is better positioned in the european marketplace. they have done a very good job of taking out costs. , at their earnings announcement, they talked about the same thing. they are on their way, but ubs is further along. jon: david joy, thank you very much. coming opt

tom: joining us, working with alan ruskin of deutsche bank, is sebastien galy. ank many inclusions in your research note. the variances, the covariance analysis and that. all of this is weighted by inflation expectations. arehe 2016 story that we migrating into a permanent of low inflation? sebastien: inflation remains quite low. even though we are seeing oil prices recovering, that will create a path through epi come and through cpi, it is quite a temporary effect. global growth is said to be relatively moderate all over the world and better in the united states, so the modern potential means that -- the moderate potential reflects the yield curves. tom: the dampening is maybe signified best through the swiss franc. explain to our audience why pros like you watch the swiss franc. sebastien: and the old days the swiss franc used to be the safe haven. i would talk to u.s. pension fund and they would try to find a way to diversify in the eurozone, the obvious choice was the swiss. it had better fiscal position. tom: what happened after the massive disjoint move? se

. >>> deutsch bank is in the spotlight as controversial documents warn of failings in the money laundering processes. >>> and a merger abandoned. amid opposition from regulators concerned about competition. >>> hi, everybody. good morning. happy holiday here in the u.k. and it's a bank holiday today but stuff is still going on, nevertheless. we have data hitting the wires right now. the eurozone factory growth. 51.7 versus 51.5 in the flash estimate, 51.6 on the march final reading. the march final pmi and the eurozone march output prices 47.4 versus 47.7 on the flash estimate, the second lowest reading since 2010. so the manufacturing pmi edging up to51.7%. they're cutting their prices to the second deepest rate since 2010. factory growth weakening in april despite the fact that we've had pretty heavy discounting going on. the euro dollar 1.14. we were looking at a much lower euro dollar. we have a guest in a half hour's time so we can get more into what's going on notice currencies at that point. >>> let's move on with the pmi data. japan's final raidirating shows industrial sector contr

deutsche bank it was around the low 20's. that's a huge fall away. ate bank has a who just reported some really decent margins, the highest since 2011. this is the unit he really wants to beef up and take advantage of. investors are looking at the situation with the likes of deutsche bank versus credit suisse and saying the core of that company has something to fall back on. david: their domestic swiss bank is doing very nicely. amanda: there is still a huge runway of layoffs ahead of credit suisse. coming up, mario draghi's decision to drop the benchmark deposit rate below zero has germany worried they may be entering a housing price bubble. we will take a look at that after this. ♪ jonathan: good day to those of you in london. you had two days of hot weather. i call it summer. it's over. that's the rest of the year. the ftse 100 pretty much dead on the screen. futures were largely positive. dow futures up by only 34 points. points.res barely up 4 just .2%.w up dollar yen with a 109 handle. treasury yields a little bit higher at 1.76%. the potential,

scarlet: the ratings firm also cut rates for deutsche bank trust that handles correspondence banking.r business is flash update. scarlet: let's bring in michael moore from london. you heard about the movies and was talking about a modest loss. why is a credit analyst worrying about profitablity for a bank? michael: that was john cryan's counter. capital front, deutsche bank has gotten past its fears from earlier in the year. they seem to have a stable capital ratio that has moved around a little bit. moody seem to call out a lot of the profitability issues, which historically have been equity holders's concerns. bankss given that deutsche has so much losses from the legal side over the last few years, perhaps that becomes an issue for the creditors. alix: one john cryan says we have enough capital to repay all of our debts four times over, is he mistaken or is this a different kind of accounting thing? ishael: i think part of it that outlook going forward. if you think that the legal issues are not over, which they certainly aren't, but it depends on the scale you are expecting going

deutsche bank, these sorts of people that have very deep relationships with the saudi government. e were to be in a prime position. it also, the government is trying to build links with the banks and investors in china as well, maybe there could be a chinese bank in there to tap that potential. there is good to be a big group. you should expect to see quite a few names on the list. manus: matthew, thank you very much. matthew martin on middle east finances. the very latest out for saudi arabia. intentionally, coming to the bond markets. wening us now, of course, have a new face. but a regular face. it is tracy joining me. we also have the head of fixed income research at emirates. great to have you over here. lovely to have you with us. first of all, have they joined the rfp? have you been asked to join in? any room? >> no. manus: where should the saudis go? will there be a good appetite for this kind of bond issuance when it comes? >> they have not done a bond for a long time. they are returning to the market after more than a decade. yes, i think there will be appetite for the bo

david: does deutsche bank deserve more credit for its comeback efforts?t has been in decline the past couple of corners. david: has greece turned the corner in its debt debacle? high-profile leaders said share high-level insights in the week's best interviews. >> the regulars want this to be a level playing field. we can expect turbulence in the financial markets. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best," the weekly review of the most important analysis of business news and interviews from around the world. two giant chemical companies took over the headlines. shery: bayer is proposing a blockbuster deal that would create the largest supply of farm chemicals and genetically modified seed. bayer wants to buy monsanto for $62 billion in cash. that represents a 20% premium. it would be the biggest takeover ever by a german company. francine: if monsanto actually reject the offer, are you ready or do you have a capacity to increase the offer? werner: we are totally convinced abo

moody's has cut deutsche bank's credit rating. just twowered to levels above junk. ng-term deposit rating was cut to 83. they face mounting charges carrying out the turnaround. the ceo says the bank has never had more capital and could be played -- replay its death many times over. toyota is recalling 1.6 million vehicles the u.s. to repair faulty airbag inflames. they are made by the japanese company. a federal regulator set up to 40 million more cars could be recalled. 29 million have been recalled before that. that is your latest business flash. much more still ahead. is rejecting the offer and seeking a higher price. we will get the latest when bloomberg markets returns. >> ♪ shery: reuters is reporting monsanto is rejecting the offer to seek a higher price. we've been following these developments. when we hearing? understand monsanto is reject the bed. this is not a huge surprise. since the offer was unveiled share,ay at $122 per monsanto would probably reject the bid. they will seek a higher offer. mark: the shares in monsanto suggest investors have much confid

says deutsche bank faces mounting challenges in carrying out at turnaround. hn cryan says the bank is very disappointed by the cut and the bank could easily repay its debt many times over. hackers may have targeted more banks than were previously reported according to the ceo of swift. hackers exploited weaknesses and how banks connect to swift to still $81 million from the bangladesh central-bank. they are boosting security members -- measures. costs toeing hurt by prepare -- repair a chip factory damaged by an earthquake and they are facing a drop in demand for smartphone components. that is the bloomberg business flash. tom: madura, thank you so much nejra, thank you so much. we need to bring in simon theedy, who has darkened doors for the intrigue that the governor faces, particularly given the referendum, eu referendum. does it color and shade everything now? simon: pretty much. mark carney is likely to find that again today. they are more likely to quiz him on brexit and the bank's role. tom: what you have done for years is linked in financial and banks

deutsche bank has less than 8% market share. time last year they had more than 14% market share. it has been a rough week for deutsche. primark, what do i say about it? how do we think this market is ?oing to open that is the story from yesterday, a massive rally from the stoxx 600. this morning, we are going to add to it. the market open, next. ♪ guy: good morning. welcome to "on the move." i am alongside matt miller. he is in berlin. where moments away from the start of european trading. matt has your morning brief. matt: thanks guy. greece gets its money. germany and the imf released 10 million euros -- 10 billion euros of aid and restructure athens debt. with critical with critical details yet to be agreed, has the canned been kicked down the road again? quick scan the bank now avoid another capital raise? plus buyers choice, while monsanto might have rejected the $62 million -- $62 billion offer, the tone was positive. markets are just about to open. guy: let's take a look at where we think we will trade today. european mar

mean for deutsche bank? y distraction effort easy to get the bank back on track. >> that's what he said. whether the bank gets behind this probe and is cooperating fully and tries to accelerate the pace they can put be nd it, i think it will better for the bank. >> let's take a look at the equity here. very n see something interesting that happened here. right when the news broke, you fall to tock actually its lowest level of the day. that was a little after 12. but ever since then, it's been a steady climb higher and now sort of reaching towards the highs of the session which we saw earlier. so sort of investors panicky but little bit in stride it would seem. what extent is this perhaps the work of one man. here, troy dixon who was running deutsche bank. was he acting on his own? the important thing to keep in mind is that according to the bank these were realized or hasn't been realized already. question may not be a question that's being reviewed at the moment. think, something that investors may be reacti

deutsche bank underperforming down over the last six months or so. y conversation i have with economists is on the italian banks. why do we circle back to italian christopher: banking versus other nations? i think it is because if we look at the industry, there are fantastic banks in italy which have consolidated over the years. there is the legacy of italian bankruptcy laws, how easy it is , thatlect bad debt gives investors fears. italian: i know the banks are big deal. we will speak with the italian finance minister. we heard from john cryan who probably has the toughest job in banking right now. he said deutsche bank is .ommitted to the markets how can he convince the markets it will not get uglier at deutsche bank? a difficult that is one. he is committed to the target unit because that is the dominant business and deutsche bank. unlike barclays which had a credit card business or swiss bank with a wealth manager, his domestic bank is challenge because domestic banking is not .rofitable he has commit to the markets business. this is about small v

to indict the entire banking sector, deutsche bank has issues related to greece, to the ecb, loans and collateral that nobody knows, regulations that they haven't even stepped up to the plate for, and probably china. to say the rest of the banking sector is like that. jpmorgan announced they're 6.3% of energy loans, they raised $700 million against reserves for them. and if anything, we're taking a lot of pressure off the commodity sector, which, again, rallied today where it hasn't rallied since 2014. it's bottoming. >> i would agree with everybody where the u.s. banks really aren't that big of a problem, right? better capitalized than they've ever been. they'll get hit by things like deutsche bank. the real risk in the financial business right now is the asset managers. the asset managers are where the risk is. black rock, companies like that, to me, look like trouble. >>> one widely followed tech investor says he's thinking of getting short, get this, short apple. dan will be here to explain why, and where he sees value in tech right now. later, tesla, sol ar city, is elon musk biti

isiously, deutsche bank having a tough time with its investors right now, but it is so cheap to borrowey. can't many of these banks just borrow money and keep investors happy through this downturn? >> the ecb tried to do this, but the investor does not like it anymore. they see, as i do, there is a much disruption within its industry. i don't think the banking sector in been up to its game terms of doing the right thing and communicating with the marketplace. you see the internal factors of banking deteriorating. and certainly, the monetary policy of the negative interest rate is a killer. a live in a country where we have had the most experience with negative interest rates, and all of the banks are having a difficult time resetting the business model. as i said last time on this show, they take money at zero, they lend it out at minus, and then they do not get to do any fun. model is destroyed because of the system and that is a pity because we need the banks to facilitate between your deposit and the businesses that need the lending. guy: steen, thank you very much. matt, i complete

david: does deutsche bank deserve more credit for its comeback efforts?t has been in decline the past couple of corners. david: has greece turned the corner in its debt debacle? high-profile leaders said share high-level insights in the week's best interviews. >> the regulars want this to be a level playing field. we can expect turbulence in the financial markets. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best," the weekly review of the most

talking about using notches the tb -- .ot just vtb they began the conversation with everyone from deutsche bankldman sachs but they decided to pull out because the u.s. told american banks, you should not participate in this. the european union quietly told european banks that you must be sure that this money, even though that russia, the government itself is not under sanctions, that this will not go to any sanctioned institutions. the banks' compliance departments were saying, we do not want to get on the wrong side of the regulars that regulators and u.s. government so they stayed away. do not have the traditional underwriters so that made it a very difficult issuance. more from ryan, including whether this was a political victory against some of the sanctions. president-- the evo is joining us from munich. .hank you for joining us when you look at business confidence, it is a little better than expected. what surprised you the most with what we found out about today? me was thatrised the increase was one point, which is quite a lot. another surprising element is the construction industry, w

what is the biggest challenge for deutsche bank in achieving this a turnaround? he turnaround has many elements in it. they are trying to change the balance of the earnings mix of the bank. they are trying to strengthen the balance sheet. they are trying to revitalize the technology platform. they are trying to do all of these things, and all of these things achieved would be quite positive. but they are challenging [indiscernible] its award space since early january, falling 5%. is set to bet buying the internet business. why did at&t come back into the game? we had heard earlier it was dropping its bid. >> we don't know if we were fed misinformation or at&t changed its mind about yahoo!. verizon and others are at the point where they can only do so much u.s. wise from m&a standpoints. regulars will not allow them to buy a camera company -- cable company. so the digital aspects like yahoo!, it is probably somewhat appealing. you can make a small bat and develop something down the road that is appealing to wireless. where's go to vietnam boeing has won an order fo

david: matt, this wasn't the only news about deutsche bank we heard. there was also news of an sec investigation, maybe some fixing with other banks. also, they are named as a lawsuit, they have several legal problems. is there an end in sight to the legal difficulties? bonds are one story, there's a class-action suit they are. see more.ited to the sec investigation is about mortgage bonds or agency pass-throughs that deutsche bank traded baton of. they were the biggest trader two toe fed on the first ease of these agency pass-throughs bonds. that's one issue that is a markdown issue, didn't mark them in time. the other issue is a class-action suit which deutsche bank has seen a timeout. they paid out $14 billion in fines and legal fees since 2012. one of his main goals, which he has repeated it a lot in the past few days is to put an end to these suits. he hopes he can end the biggest ones by this year. david: that's matt miller, coming to us. vonnie: time to go to europe. finance ministers are meeting in brussels to conclude greece's bailout review, t

there is not this crisis of confidence between which a bank and ubs and the -- between deutsche bank rparty risks. we try to look at where the winners and losers are based on what is happening with these policies. clearly, these banks seem to be on the losing end of that trade. francine: -- vonnie: you were talking about the italian banks. carl: italy has a problem today. one of the things that came to me as i was writing my high-frequency notes this weekend is that ecb bond buying ends a year from now. i have run out the total amount bybonds that they will buy march next year. that means they will stop buying. with negative yields out to eight years, that as a result of the ecb buying. if the buying is going to start by -- it's the buying is going to stop by march of 2017, there has to be a correction. vonnie: it does not have to stop, though. carl: yes it does. it is law. it comes from bankruptcy law with europe. allowed to do that. tom: i have to rip up the script right now. renzirence, italy, mr. says he has discussed japanese investments in italy, and most abertantly counts on mr

reporting thatst deutsche bank is emerging at the center of a probe. s been accused of wrongdoing that investors are narrowing their focused after requesting -- rochus after requesting information from all of the primary banks. that is the bloomberg business flash. mark: we get to big data from the eurozone that could indicate the ecb's next move. unemployment and inflation of feet into mario draghi's decision on rates due on thursday. let's get to paul gordon. inflation, german unemployment both beat estimates . is there reason for optimism at the ecb? paul: there is some reason. those numbers are one hint. euro area confidence numbers came in better as expected as well. yes, theould say stimulus is starting to have more of an impact that there are some fundamental concerns. although energy prices have not manyince january, people believe that is going to continue to extend. we will recoup the lost inflation and other areas. energy prices helping the ecb hit its 2% inflation goal in the past but that is not happening. industrial goods not likely to con

david: does deutsche bank deserve more credit for its comeback efforts?esults haveing been in decline the past couple of corners. david: has greece turned the corner in its debt debacle? high-profile leaders share high-level insights in the week's best interviews. >> i have confidence the regulators want this to be a level playing field. >> all these changes will not happen without bumps. >> we can expect turbulence in the financial markets. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best," your weekly review of the most important analysis of business news and interviews from around the world. as the week began, a proposal to merge two giant chemical companies took over the headlines. shery: bayer is proposing a blockbuster deal that would create the largest supply of farm chemicals and genetically modified seed. bayer wants to buy monsanto for $62 billion in cash. that represents a 20% premium. it would be the biggest takeover ever by a german company. francine: if monsanto actuall

david: does deutsche bank deserve more credit for its comeback efforts?> it has been in decline the past couple of corners. david: has greece turned the corner in its debt debacle? high-profile leaders share high-level insights in the week's best interviews. >> the regulators want this to be a level playing field. >> we can expect turbulence in the financial markets. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best," the weekly review of the most important analysis of business news and interviews from around the world. two giant chemical companies took over the headlines. shery: bayer is proposing a blockbuster deal that would create the largest supply of farm chemicals and genetically modified seed. bayer wants to buy monsanto for $62 billion in cash. that represents a 20% premium. it would be the biggest takeover ever by a german company. francine: if monsanto actually rejects the offer, are you ready or do you have a capacity to increase the offer? werner: we are totally convinced

banks like deutsche bank are essentially having to fight on two fronts, the current market volatilitycredible onslaught of the u.s. banks on their own turf. i think he was banks of the upper hand right now. scarlet: you see that in the way the european banks respond. credits we says been cutting coxswain aligning business is. john kline at deutsche bank is slashing jobs. is he doing enough to grow revenue? it always comes back to the main issue. >> absolutely. he is still winning investors over for now. they like his strategy. it's more a question of execution. he was very careful to stay on the one hand of the bank does not need to raise capital and it could cut costs aggressively. on the other hand he was committed to the markets unit. is that balance line between revenues and the franchise and cutting costs. it is too early to say. and you had different analysts trying to look at the banks. jpmorgan has cut earning estimates for the nice for 2016. they actually like deutsche bank because they say it could cut costs faster than the other banks, faster than investors expect. alix: ca

martin gilbert told francine that it's the deutsche bank coat ceo. y don't have to count investment banking for earnings growth. the think he probably has tough job. there is a very good wealth manager that he can fall back on. think they've all got good hits and they've all got investment banks that are probably trying to downsize sherry: shares are down 36% in this year. francine: thank you so much. we had a great conversation with mark gilbert he did not pull any punches. week oncatch that this friday evening. we talked about brings it in the risks out there. lehman likeout moments. he said that's not going to rexit happens.b tom: i haven't looked at deutsche bank chart in ages. it's not a pretty sight. of residence, the wall street journal reports people concretetalk about terms of a proposal by the monetary fund where they say these will be the rules. paul joins us from the london school of economics. quickly, you have said for years there must be a long-term debt extension to help greece. are we finally there? paul: i hope so. the imf has been p

barclays and deutsche bank seem to want to remain the european champion of investment banking.k: the first quarter could be the trough. he spoke to francine. he said, i don't think we can get as bad as conditions as we saw in the first quarter. which is something all of the banks will be hoping for. michael: we have seen banks call the bottom a few times. it seems they keep saying, it cannot get worse and it inevitably does. he said this is the trough, and we will see. mark: time will tell. michael moore of bloomberg news. ready? -- betty? betty: cheaper oil has been a help to the airline industry. said profitsines have doubled. there are other challenges. ♪ show me top new artist. ah, ha ha. show me top male artist. my whole belieber fan group. it's not a competition, but if it was i won. xfinity x1 lets you access the greatest library of billboard music awards moments, simply by using your voice. the billboard music awards, live sunday may 22nd, 8/5 pacific, only on abc. bloomberg world headquarters in new york and london i am ready lou. mark: i am mark barton. let's check in

david: does deutsche bank deserve more credit for its comeback efforts?> it's offering results have been in decline the past couple of quarters. david: has greece turned the corner in its debt debacle? >> we still have to work that out. david: high-profile leaders share high-level insights in the week's best interviews. >> i have confidence that the regulators want this to be a level playing field. >> all these changes are not going to happen without bumps. >> we can expect turbulence in the financial markets. david: preparations for shanghai disneyland. ♪ it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best," your weekly review of the most important analysis of business news and interviews from around the world. as the week began a proposal to , merge two chemical companies took over the headlines. shery: bayer is proposing a blockbuster deal that would create the largest supply of farm chemicals and genetically modified seed. bayer wants to buy monsanto for $62 billion in cash. that represent

let me talk about deutsche bank.o-ceo john cryan is the most challenging job among all his european counterparts in turning around the german letter, according to martin gilbert. that's even if he can continue to borrow money. he spoke with francine lacqua. listen in. >> i think john cryan at deutsche has a tough job. tijian has a very good wealth manager that he can fall back on; barclays has a good retail bank. all got goodey've bits, and they'll have investment banks that they are probably trying to downsize. matt: let's bring in a shock ashok shah. let me ask you what you think about a bank like deutsche. you can to borrow at low rates and pay dividends; investors should be happy about that, but he has a heckuva job in the turnaround, doesn't he? >> absolutely. the problem with deutsche bank is that it is still too large, and the capital structure will need a lot of boosting. of course he has time until 2019 to get to the requirements. so in the meantime, he continues to make sure that the middle of the balance s

deutsche bank has gotten worse. he 5.3 trillion debate currency market has tumbled to 7.9%, down from 14.5% a year earlier. that is according to a euro money institutional investor survey. the bank is now the world's fourth-largest currency trader, sliding from second-place in euro moneys 2015 reckons after holding the top provisions from 2005 2 2013. anna. anna: has linda, thank you. with the reported results with net profits coming in at 193 million euros. it will expand its network. .oining us now is jozsef varadi thank you for coming to see is on countdown. tell us a little bit about how you see the rest of the year shaping up. we spoke to michael o'leary at ryanair and he was pretty gloomy on pricing. how do you see things into the future? we are seeing trading conditions being quite robust moving forward. what visibility we have on the business, we are confident in our ability to deliver proper resources. as expected, we are seeing the lower fuel prices feeding through into the fed environment. fares are coming

. -- deutsche bank is emerging in a probe. no bank hasat -- been accused of wrongdoing.gators are narrowing their focus. deutsche bank is -- has not disclosed that it is under investigation. that is your bloomberg business flash. rishaad, thank you. officer inxecutive zurich that stepped down has committed suicide. good morning. what details do we have so far behind the suicide? we do not have many details so far about the reasons of the suicide. dead at hisas found holiday residence on friday. the news was made public by zurich insurance on monday. they were citing family. our understanding is that he did not leave behind a suicide note and the company did not provide any further details on this suicide. as you pointed out, this comes six months after his departure. it wast month, challenging for the company and the ceo. manus: a tough time for many industry leaders and all around. this is the second suicide in three years in zurich. what shape is the company in? throughhe company went a difficult time frame. group consecutive profit warnings in qqq consecutive quarters

martin gilbert says deutsche bank has it difficult road ahead. -- has a difficult road ahead. martin gilbert: a lot of them are relatively new to the job. jobs.ave tough i don't envy them what they have to do at the moment. anna: welcome to countdown. i am anna edwards in london. manus: i am manus cranny in dubai. good morning, and a. anna: let us talk about the oil price. wti yesterday. we are rallying once again this morning. tomorrow.data is due seeing increasing in the united eights. decrease ino weeks back to back numbers since september. we have a number of factors coming in. i have a chart that contextualizes this move. all the way back to 2005. inventory are forecasted -- inventories are forecasted to decline again. bouncing up since the lows in february. 80% since we saw the 12th year those in the price of oil. a number of factors. wildfires in canada that on the agenda. warm weather fanning flames. supply disruptions in nigeria as well. talking about oil and what you do with the proceeds of oil. manus, inc. news in your part of the world. manus, big news in your part

he even said today they are not going to be merging with deutsche bank. the problem is they are shrinking the investment bank. they are trying to build up and wealth management. and it's tough, they are having enough trouble with their own getting their own ship in order. to have a merger on top of that would certainly complicate things. more focusedhey're on showing some progress after a couple missteps with their turnaround. >> today could be the last day in office for president dilma rousseff. brazil's senate is scheduled to hold a vote. as the impatient of t -- the im peachment has looked more likely, more investors have poured into brazilian investments. a it is somewhat of counterintuitive point. up 30% this year. investors are betting we have had five months of uncertainty. let's get this behind us. let's move on. >> hour many -- how many more hours do we have to go on until it vote takes place? >> the process is moving slowly. surprisingly. started at 10:00 a.m. there are 70 senators scheduled to speak. we are right now on senator 20. still a long

they are in line with deutsche bank.clays is outpacing them by far in terms of the less bad scenario. there are fewer declines we see in share prices. they are all restructuring. it looks like what we saw today, they seem to be pulling ahead. my chart follows absolutely perfectly from that. this is our function on the bloomberg. it shows you management history. you can look at all the positions within credit squeeze. -- credit suisse. you can see the chief executive officer highlighted in yellow. he started his job on june 1 last year. you've got to look at this. 43% in theeturn is red. the industry is down by 16%. byis lagging the industry almost 30% since he took over. really quickly, i want to show you a lovely chart that shows the return on tangible equity. this basically measures the rate of return. the red light is the swedish letter. the white line is ubs. bank goingh deutsche back to what you were saying. is only marginally better. both deutsche bank and credit suisse have a long way to go to be more efficient at

deutsche bank was above five big lenders pursuing that it was manipulated by the government. ions such as the world bank. all named in the lawsuit. brought by pension fund. ♪ rishaad: a live view singapore. the market is down at the moment. ♪ opec has it right. the strategy to secure market share is working. the fed aims for a rate hike in june. if the u.s. economy looks strong. economy'scut the growth forecast. and egypt air flight has gone missing. 12:30 p.m. here in hong kong. anna: we're counting you down to the start of the european trading day. let's start with one of the big mergers and acquisitions stories. received a date from the german industrial giant. part of this broad consolidation story that we've seen in the chemicals business. crop chemicals companies coming together. they agreed to by syngenta. the chinese deal was valued at $32 billion. new cropoff their science unit. if they can put their businesses together, it could be the largest deal we've seen this year. so far. under relatively new management cap they are. -- activator. at bayer. anna: we'll be talki

let's give you a check of deutsche bank trading in higher about a0.8 percent.his as moody's has moved to downgrade it. the rating agency said the lender's outlook is stable, reflecting potential benefits of the five-year plan. yes, confidence coming from moodies. still concerns for the short term. however, investors pushing the stock higher. louisa. >> yeah, thank you, nancy. people tweeting in already. fantastic to hear from you. i want to tell you what's happening with regards to the latest comments on japan because we have the japanese adviser to the prime minister shindo abe's adviser especially saying that japan should be pressing ahead with the plan's sales tax hike in 2017. unless there's a major economic shock, because, he says, the economy seems to be stabilizing after the market turbulence. those comments just hitting the wires. getting them via reuters. let's check in on the broader markets in asia and hear a little bit more from dan murphy joining us from singapore. these comments just hittings that you these sales should continue from the planned s

banking sector. i am not saying we are going to see deutsche becoming one of those. look at what is happening in europe and you think about the banking sector and you think about the u.s. economy is surging ahead because it has better capitalized banks. let's get tapan datta's comments. europe's have -- europe has too many weak banks. is merging some of these institutions the way to go? tapan: yes it is. i think we need a real step up and consolidation. -- and consolidation. guy: the regulators should be forcing -- tapan: i believe he is on the case. i think it is recognized by really a lot of folks. guy: what does he do? busy raise tier wants -- does he -- does he raise tier ones? tapan: i am not sure it is agreed by the makers themselves that consolidation is needed. the brexit question desk to really get that degree of consolidation, otherwise we will have more problems -- to really get that degree of consolidation, otherwise we'll get more problems down the road. guy: you can see them being the hubs. any help banks that you can see? -- anynot at the moment help ba

david: does deutsche bank deserve more credit for its comeback efforts?'s offering results have been in decline the past couple of quarters. david: has greece turned the corner in its debt debacle? >> we still have to work that out. david: high-profile leaders share high-level insights in the week's best interviews. >> i have confidence that the regulators want this to be a level playing field. >> we can expect turbulence in the financial markets. david: preparations for shanghai disneyland. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i am david gura. this is "bloomberg best," the your weekly review of the most important analysis of business news and interviews from around the world. twooposal to merge chemical companies took over the headlines. shery: bayer is proposing a blockbuster deal that would create the largest supply of farm chemicals and genetically modified seed. bayer wants to buy monsanto for $62 billion in cash. that represents a 20% premium. it would be the biggest takeover ever by a german company. fran

now, deutsche bank holding bonus payments to a group of employees while examining they improperly tradedith the firm. the company is reviewing a transaction that may have involved unacceptable conflicts of interest. they may take disciplinary measures where appropriate. three time masters champion will return. in the 12, he picked up almost $1 million after acting on a tip from the gambler. -- hec describes him as a is not actually accused of wrongdoing but that money can be recovered. he does not want to benefit from a transaction the fcc deems "que stionable." for allews each day, our top stores, go to top go. and: thank you very much, hong kong, let's stick with the story out of hong kong right now and check what is happening in the asian market session. a great story of risk on and risk off and how that is gripping currency markets want to again. how that is tying various asset classes together. that's right, to some extent, that slight retracement besought the u.s. dollar overnight give a little bit of respite in terms of commodity prices, and these risk assets in emerging markets.

deutsche bank is cooperating with the investigation. the federal occur federal appeals court has reversed the finding about bank of america and negated a $1.2 billion penalty imposed after the trial. the court said there was insufficient evidence that mail fraud and wire fraud were committed by the bank units in late 2007 and 2008. bank of america acquired countrywide in 2008. david: open-door trading as president, grillo at bank of america will start on june 1 and report to susan este. he left in march. that is your business flash update. back to the markets now, where stocks are more or less flash -- short on volume. materials are the big gainer, technology also positive with utilities and telecom lagging. shery: the market is trying to digest the fed minutes and look towards eco-beta this week. what sector showed the most potential for growth? .oining us now is jim tierney jim, thank you so much for coming in. today, health care taking a hit. down 3/10 of 1%. but it has been taking a hit for the whole year. do you think that this sect

deutsche bank has halted bonus payments to a group of employees while examining whether they improperly traded. the company says it is reviewing a transaction that may have involved conflict of interest. global news 24 hours a day powered by our 2400 journalists in more than 150 news euros around the world. find more stories on the bloomberg at top . francine: thanks so much, nejra cehic. on to the markets. this is what european equities are doing. seeing a little bit of a rebound. financial markets in general showing signs of stabilizing after being zigzagged this week by a surge in expectation. this is a picture for the ftse, the dax, and the cac 40. i want to show you the price -- i don't know if we have gold, but brent crude at 49. that is also regaining a touch. the yuan headed for a third week of declines against the dollar. this is on the back of dollar strength, unaided speculations the u.s. will raise interest rates. we will get back to the markets and currencies with jane foley in just a second. first, let's update you on the egyptair flight from paris to cairo which disap

halliburton will now have to pay a $3.5 billion breakup fee. >>> deutsche bank has systemic failings ts controls against money laundering, terror and sanctions. it reports that a separate independent review has been ordered. there were concerns about the bank as governance. they are cooperating. and the shares are down 2.3% this morning. >>> quaker oats is being sued for $5 million over claims the company has been using a dangerous weedkiller in production. a lawsuit was filed on behalf of new york and california consumers after testing found traces of pesticides in some of the oatmeal. of course quaker is owned by pepsico and has fired back that it's very, very minor traces. >>> another lawsuit story. starbucks is in trouble as too much ice has been put in a 29-page complaint. ice drinks only have half the amount of liquid being paid for, specifically in the iced coffee. this customer suing for $5 million because there's toop ice. >> they're measuring the amount of the drink and it's not what they say it is? >> i think it's pathetic, and i don't know where he gets his $5 million fiss