deutsche bank declined to comment on this report. hed a couple of other banks, including standard charter and credit suisse, the bosses there to see if they could lower them away. ,oining us now from frankfurt the chief economist. let's start with nick. why do they want to replace john cryan? he is in the middle of this new turnaround push, and he told me the last semi-spoke to him in frankfurt it is taking hold. not heard from the bank officially that they want to do this, just a report. there have been a lot of voices the last couple of months saying cryan is not the right guy. let's strip that down. he stabilized the bank, and that is no small feat. a lot of people were worried deutsche bank was running against the wall a few years ago. he is bringing down costs and bringing up capital levels. those are good things, but you have the issue of, can he return to growth? can he motivate his people to generate more revenue and carry them through the overhaul, and into a future where they are profitable bank? future where they are profit

deutsche bank is considering candidates to potentially replace john cryan. to the times of london, the bank approached the head of goldman sachs' international operations. deutsche bank also considered unicredit ceo and a standard chartered's the winters. deutsche bank declined to comment on the report. the newspaper said it goldman sachs also declined to comment. that is the bloomberg business flash. francine: thank you and now let's talk m&a, glaxosmithkline has agreed to sell the joint venture and this gives glaxo full control of the business, which owns brands, including teraflu cold medicine. shares in both companies are trading higher this morning. for more on this, let's get the senior pharmaceutical analyst. donald have lucy mac and miek bell. does this make sense for both companies strategically? -- thiswas an uaction overn auction hanging their heads this year. the fence they have done it clears it out of the way and it is a good price, we think. 18.4 about 18.3 times to times operating profit. it brings it all in house, and they know the business a

to replace them now, is an that his choice was not the best one for deutsche bank. cond the bank is facing big problems. it needs to be solved. matt: thank you very much, steven arons, bloomberg's deutsche bank reporter out of frankfurt. if deutsche bank got a new ceo, would you buy the equity? patrick: you would have to hear the plan. it is a difficult turnaround. you have issues on loans and profit margins, and where it is going as a business. it obviously has enough assets that you cannot -- you can't turn it around, but it will not be an easy job. much,thank you very patrick armstrong, cio, plurimi group. china's leader president xi he is going to visit toth korea for march 29 march 30. he is also going to meet with trump as well. this is bloomberg. ♪ matt: 30 minutes to your trading day. that just tech tanks, everybody's fang stocks suffering their worst day in three years. the sentiment is leading into european markets. the pain from the tech sector keeps spreading. the u.s. is weighing a tech crackdown on china it will it be the tipping point for china's fund

it seems like a paradox. >> i would say deutsche bank is the albatross around european banks generally speaking. n.at is sort of a know -- known known. during the financial crisis in the u.s., it went down the plug hole. investors are looking at deutsche's at 10 euros as the same vortex of hopelessness. it seems like every time it looks like it is getting on its feet, you turn away and it is down 3.5%. do, we wantver you you to do it quicker. cameron crise, lisa abramowicz. coming up, u.s. futures pointing higher today after yesterday's rally across the stock market. we will have plenty more on the market rebound as allianz global investors joins us. this is bloomberg. ♪ ♪ >> this is "bloomberg daybreak." i am kailey leinz with your business flash. selling a $13.5 billion stake in its pharmaceutical business to glaxo kline. won an optionhas to win the specialty group of akzonobel. the 10 billion euro deal will leave the dutch company focused on paint. uber to stoprdered operating autonomous cars on state roads indefinitely after the death of a pedestrian there a week ago. the uber ceo

both pushing deutsche bank up by 1% right now. matt? matt: all right, thanks, nejra. t's get more with german banks reporter steven arons on which a bank.che are threert, there issues our viewers care about. what is up with bonuses? what is the pay structure going to look like? who was getting fired. 6000 people are going out, but a think that is retail operation only. ipo, 1.8r three, the million dollars, they need the money, i get it. what will happen with pagan deutsche bank? it is really interesting. bonuses are really back to normal at deutsche bank. as you might remember, they were 2016 and byor 2017, they are back to the normal level. not everybody is getting a good bonus, obviously. the trading unit did not do very well last year and i have heard from a few people that a few people are not as happy as other bankers, but the important move is bonuses are back to normal. john cryan made good on his promise to return to the normal bonds policy and that is what we are seeing now. matt: but he's not going to get one, right? it was reported over the weekend and then

deutsche bank may be preparing to replace john cryan.chairman has been holding talks with potential chief executive candidates. according to people with knowledge of the matter. let's get the latest from stephen, bloomberg's german banks reporter. cryan's days numbered? >> they could be coming to an end. that is not a good sign for him. people are calling him a lame duck. investors are unhappy with his performance. -- sayifficult to stay if it is over yet. it depends on first-quarter performance. if that turns out badly for him just ahead of the agm in may, i think things will come to a head. mark: how much of the blame should rest with the chairman given that he is in charge of hiring these chief executives? steven: i think that is a fair point to make. he was in charge of cryan at the beginning. in the beginning he was well-liked. that has now soured and the investors have put -- have been putting pressure since basically the middle of last year to find a replacement for cryan. that turned out to be extremely difficult to find someone

dominic: deutsche bank's official view is they will hike four times.he market is struggling to price that view. they are struggling to price three hikes. made's an argument to be that the market will price for more than it is currently pricing. acceleration fed priced by the markets, one of the issues that happening, the interest rate structure is becoming less supportive to risk assets. whereas last year we could have said look, rates can go up and we will be quite supportive -- we are coming to a turning point ande as rate rises continue the yield curve continues to flatten, it is less supportive this year. i would say you didn't have to worry about hedging risk assets last year. you have to worry about hedging them this year. the fed acceleration doesn't help. mark: how would you hedge, then? would you say we need to hedge risk asset exposure? what would you suggest? dominic: what you are trying to isge in particular, i think, the idea that the curve flattens quite a lot in 5-10 space. it starts to predict the idea that the fed is going to overkill

deutsche bank is reportedly considering candidates to replace the ceo according to the times of londonhed the head of goldman sachs international spurnedns but he has the overture. deutsche bank also considered two others. golden -- goldman sachs also declined to comment. arizona has ordered uber to stop operating autonomous cars after the death of a pedestrian. the governor called last week's fatal incident involving a self driver -- driving car on questionable failure. the company had already voluntarily halted all testing after the vehicle struck the woman in tempe, arizona. cfo said its first wave of electric cars will not be as profitable as combustion engine models. returns will be better than the previous battery-powered vehicles. the forecast will accelerate by 2020. he made the comments in an exclusive interview with bloomberg. >> they are going to spend $34 billion on electrification, and a thomas driving. we are serious about it. we think it is what the company looks for. we will invest in the optimization of our portfolio. combustion engines make up the majority of the mark

. ♪ vonnie: breaking news on deutsche bank. the ceo says he is committed to serving the lenders. is a memo to employees that bloomberg has seen. bank issays deutsche experiencing no difficulties between him and the rest of management and that the board is on board with the strategy he is implementing. he also said to expect further possible developments. while lowere stock earlier has crawled back and is pretty much flat at this point. mark: no difference of opinion between the management and the supervisory board on strategy. this after the peace in london suggested that the cfo and the chairman specifically over strategy when it comes to the investment bank and we've got the story today saying deutsche bank is conducting this fresh review of the investment bank that could lead to deeper cuts across the trading businesses. that was already in place before all the speculation unfolded. clearly things are happening within deutsche bank. let's look at what is happening to european markets as we head to the close. take a look at equities. you can see the ftse is trailing up, led by

of deutsche bank is lousy. this is a much bigger problem than the investment banking. rk: thank you for joining us today. klaus nieding, vice president of deutsche schutzver fur wertpap. this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. mark: i'm mark barton. this is the european close on bloomberg television. check what's happening heading into the close. stocks rallying today, gaining for the first they in five. the gains aren't as big as we saw in the u.s. yesterday. still, ftse up by 1.6%. dax up by 1.6%. cac 40 up over 1%. year, the 29this month high was generate 23rd. -- january 23. sterling lower against the dollar by .6%. euro up against the pound. euro lower against the dollar. we are seeing money move into stocks and into bonds as well. the close is minutes away. this is bloomberg. ♪ mark: from bloomberg's european headquarters in london, on mark barton -- i'm mark barton. the first day of gains and five after the stock 600 felt way -- fell to a 13 month low. concerns about a global trade war dissipating today. h&m reporting its lowest first o

deutsche bank shares down substantially, the european bank in the news, warning of revenue headwindsrom currencies and high funding cost. joined by our finance and investing managing editor. what happened in the last week? last week and things were looking a bit better but what happened in one week? >> the news today is not all that surprising in terms of the actual facts. talking about headwinds from fx which we can see but looking at a currency graph. surprising to investors was the different tone. report, a, the annual very optimistic outlook or trading business in 2018. well beyond the first quarter. -- the firstors quarter may not be strong because of these headwinds they are facing. mark: john cryan's quest to boost revenue is still a quest? thehat is right and on trading side, potentially it could come through more faster, the other areas he is trying to boost revenue may take longer, the corporate finances in germany they are trying to grow, that does not happen in a quarter or two. vonnie: what must morale be like? they came out weeks ago and said they would reinstate bonuse

restarting deutsche bank. we have our german banks reporter. deal of her verification before we got the statement in terms of commitment from cryan. too little too late? this is pretty late area came two days after the rumors exploded into the open that the bank is looking for a replacement for him. that is a long time, a lot of for merson speculation. more importantly is the fact it came for him himself. he has to write his own defense while the chairman of the board who is in charge of replacing cryan remained silent and has been ever since those rumors have surfaced. matt: is cryan looking to cut reply to these rumors? i do not think it is a reply. it is something cryan is doing to restore profitability. he is constantly looking at the a wide-ranging review of the investment bank. they have realized they have lost so much market share and it would be so expensive to rebuild it in all areas that they need to focus on a few and forget about the others. it is not a reply. the question is now that he is damaged, he is a lame duck, can this revie

deutsche bank has raised 1.4 billion euros from the ipo.to complete his turnaround plan. the price values deutsche bank asset management at 6.5 billion euros in total. its get more with -- in frankfurt. jp, how does the ipo price compare with the range? i know they were ready to sell a little more of this asset management unit than they did. >> the price of 32.5 euros is somewhere in the initial -- middle of the initial range. 30 to 36 euros. the valuation is in line with the largest asset manager, which has double the assets and market compensation. it is a decent price. deutsche bank might have hoped to get a little bit more out of it. guy: what are we getting out of the gray markets? today will be a tough day to ipo, isn't it? jan-patrick: it is definitely. they could have waited, but it is a tough market for an ipo. early indication is somewhere above the ipo price of 30 euros. .t is early to say how much we expect pricing between 9:00 and 9:15 from the stock exchange. matt: what are the challenges that dwp faces going forward? today wi

this bill helps deutsche bank which the i.m.f. called the most important net contributor of all worldwide banks, deutsche bank, german banks, the international monetary fund called it the most important net contributor of net risk. deutsche bank is the only bank that would lend to the trump economic empire. even after the failed business deals, they kept lending money to trump. this is met with a request on information with shady financial dealings. i don't think any of us -- i don't think we were sent here to serve deutsche bank, and i'm thinking, mr. president, that none of us go back in our campaigns -- i'm on the ballot this year, i'm not going to go back and say, please reelect me so i can help deutsche bank and pass a bill that will give them something they don't deserve. this bill would help banks like barkley's and u.b.s., banks that have rigged interest rates, violated u.s. sanctions against u- iran and sudan, manipulated energy markets. these aren't banks lending to homeowners in sandusky or in my hometown in mansfield. t

i think deutsche bank though could be one off deutsche bank is going through a painful restructuring. today they launched their asset management arm it traded okay they are supposed to be cutting over $1 billion in expenses this year they are not going to do that. the stock keeps running into issues, which include the ecb. if you look at european financials vis-a-vis u.s. financials, european financials are lock step. in other words they are both down about 1 to 2% on the year i don't think that europe is worse off. i think on the up side europe is better off my view. >> how would you think of positions come monday? >> so, fur looking at the way we closed, i think we closed weak technically. i do think that you want tosee this selloff last a little bit longer but trying to thread it, trying to time it, i think is a fool's error. i think you have to stay long and get longer if we dip. >> still constructive on the market. >> still constructive on the market. >> still constructive on the market longer term, you are still -- >> my view has been -- i think there are valuation issues. >> ri

so it is deutsche bank. i think it is a pretty big market. rue what wants to see happening, the smaller banks consolidate, then it may actually be more space. sachs recently announced they want to push deeper into corporate germany. facing moretainly competition there and the struggles they are facing are not helping them. thank you so much, that was steven arons. , the chief equity strategist and also japan. this is bloomberg. ♪ francine: this is "bloomberg surveillance." vision maya's 2030 have gotten brighter, classified as an emerging market by the ftse brussels. attract foreign investment. bloomberg spoke to the chief executive of the saudi stock exchange after the announcement. >> this is a recognition of our international investment community for the reforms that the saudi stock exchange has taken. months, to 18 address the requirements of the opening of the saudi stock exchange and to pursue a more attractiveness platform for international investors. you confident that the ms b.i. will deliver a similar outcome in june? it seems like t

this is bloomberg. ♪ david: deutsche bank shares are up this morning. ffering is art of the strategy to turn the bank around. stephen, is there any surprise to this? we thought they would have this partial spinoff. >> right. so, no, not really. that it wouldnt happen happened. it happened last year. we reported last year the valuation range will be between six and eight billion dollars. , the stake was known. no big surprises, but that they are actually doing it now is an achievement for the ceo. that is the biggest thing. david: that is the most important thing, he said he would do it and he is. what you are saying? >> yes. the markets, they are influenced by the report we put out there looking to cut 6000 jobs in the retail unit until the end of 2022. and the bonus announcements, the management board will waive bonuses for a third year. all of that has influenced the share. referred to that earlier in the program. he came under some criticism because he said he was going to cut cost and has not done it. is this a surprise? >> i think it is reassurance

deutsche bank offered 26% of its asset management unit today on the front for stock exchange. chief executive of the unit spoke to bloomberg's guy johnson. deliver on the promise we give to our investor, they are important for management to build trust with we will workand very hard as a team to deliver on our promises. growing, we will be working with our partners, i with those who develop product with us and came with this dealer with a very significant order. talk to people i have not been able to talk to before. the want to join us and develop new product. the idea is to strengthen the on ourse and deliver cost income ratio target. and grow the business. desk, again. just try to develop the business. >> that is what i should've said, which flight are you taking and where you going? annuale a 3% to 5% target of net new money. is it going to be hard to get to five, do you think it's want to be nearer the three? give us a sense of how difficult is going to be to make that range. >> we are still in a transition period as a new company. we went to difficult times in 2016 and 20

deutsche bank is trying to find out where the cut -- where to cut costs and save money. le, the next bonus round will be that much smaller. vonnie: the review of the investment bank wasn't in progress before word of this search of the potential new ceo got out. steven: yes it was. it is been going on for a while at least. -- it has been going on for a while at least. it is relatively fresh. we don't know how this new development will affect deutsche bank's review of the investment bank. it will in some way. the next ceo would have to take another look, it is not clear how the search will affect the review. vonnie: there is also the idea that deutsche bank is considering doubling down or exiting that business completely. what would anbang -- what would an exit look like? they are not going to exit investment banking, period. they are looking at businesses where they can invest more, so it is going to be a decision. they are looking at each unit separately and trying to figure out whether it is worth investing. off, but theyh it will not pull back from investment banking. t

on top of that, deutsche bank has to hang on to its people. in that he has to hang on to his key revenue generators and to do that, you have to pay. >> the largest insurer in the u.k. plans to focus on growth outside europe. prudential has divested $16.7 billion of british annuities to rossi life. they also plan to spin off its m and g investment units. >> prudential already looking beyond the m&g's spinoff. is the u.s. the next one, maybe? >> there are no plans at the current time to look at spinning further. i think we've always said that we are an active manager of the business, in the shape of a group. but, if you look at where asia is going direction only, the ability to solve complex retirement issues will be a skill set we absolutely need, and the u.s. is the market leader in that. our jackson team. there's a lot of synergies, and we will display a few more of those in the upcoming months. we think it is an appropriate combination of market positions, capability, earnings, diversification, lots of good things. having the two together. >

david: coming up, deutsche bank spills off its european operations, deutsche bank moves forward withplans and a megamerger rocks germany's energy sector. and, we will revisit some compelling conversations. steve schwarzman cuts to the chase on the subject of free and fair trade. >> we needed a level playing field and the best products and services. david: this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. david: this is "bloomberg best." i am david westin. in the days since president trump announced he would impose tariffs on foreign steel and aluminum, investors and policy makers have been concerned about global retaliation and ultimately, trade war is. it was a topic of conversation thr

deutsche bank changes course. lender is cutting bonuses as it scrambles to retain. is it too little too late? all of that to come. into theht minutes trading session. abigail doolittle is here. abigail: 310 to 1%, we have bond selling off 10 year yield up to basis points, represented in red. that points to the fact that bonds are selling off. the question is whether it will last. we have seen averages open higher and an fix or lower. some volatility this week. so far, buyers in charge. looking at consumer financial stats, a nice boost. we saw the university of russian consumer confidence number coming out at 10:00 better than expected at 102 versus the estimate and 99.3. that is the highest reading in years. consumer financial stocks trading higher. that might have something to do with the fact that yields are higher. increased consumer sentiment around tax cuts is helping the casuallong with the dining space. let's take a look at restaurants. may be thinking that some of the extra discretionary dollars from the t

on top of that, deutsche bank has to hang on to its people.eedle he has to thread, to hang onto his key revenue generators. to do that, you have to pay. >> -- plans to focus on growth outside europe. to rossi life. they also plan to spin off him and she potential unit. >> investors are already looking beyond the m&g's been off, and maybe -- spin off. is the u.s. the next one, maybe? >> there are no plans at the current time to look at spinning further. we've always said we were in active manager of the businesses in the shape of the group, but if you look at where asia is going direction only, the ability to solve complex retirement issues will be a skill set we absolutely need, and the u.s. is the market leader in that. synergies, andf we will get a few more of those in the upcoming months.but we think it's an appropriate combination of market positions, capability, earnings, diversification, lots of good things. >> adidas has reported a 19% jump in fourth-quarter revenue, led by sales in china and north america. is china what's really behind

. >> john, thanks for spelling out that novartis deal >>> now, elsewhere big story in banking, deutsche bankreportedly looking to replace ceo john cryan after only two years at the helm of germany's largest lender the times blames a breakdown in relations between cryan and the chairman over the bank's future and recent performance the lender approached richard notty but he is said to have turned down the role other names in the hat include bill winters i'm happy to say annette joins us on the line and has more on the story. what can you tell us >> i was talking to some sources, and people are saying that at least the latest profit warning for the first quarter done by the deutsche bank cfo, they thought it was high time to get someone else at the bank because the strategy is not working. john cryan will be at the helm of the bank for nearly three years in july. the problem is it's not only about capital. capital is just fine, but it is about weakness in revenues, especially in the investment bank and to be successful and also attractive to investors, deutsche bank needs to have a profitable

will restructuring of the top stop deutsche bank's problems.s is bloomberg. ♪ ♪ this is "bloomberg best." i am abigail doolittle. let's begin our global tour with china shaking up the oil futures market. >> the global oil market getting a bit of a shakeup, a wake-up with the launch of china's own oil futures on the shanghai international energy exchange. the largest oil consumers. foreigners can buy and sell. it is a first for chinese commodities. will china get a bigger say in pricing? >> is a massive win, but very much a long-term one. we can't expect the applications the feet into the markets on the short-term horizon. i'm not just talking about weeks. i'm saying months. over the years ahead this is a big win. as anps validate the yuan up-and-coming rival currency, as a serious currency reserve basket. it will help support the chinese bond market. it enhanced the whole financial system in china. they have taken a long time to get there. they wanted to wait until they had support from the gcc countries and they have that. this is big news, ev

finally, deutsche bank.hat is down 2.2% as we await for the listing of dws, the spinoff of the asset management unit. that is debuting today. deutsche bank raised about $1.7 billion from that sale. we're still waiting for a market price on that, guy. guy: we are just getting it,a ctually. -- actually. matt, it is a busy day on the frankfurt market as we await the shares starting to trend. are we getting a price. we are still waiting for a price, but it is the biggest. i started my career out here, working on the floor of the frankfurt stock exchange. threely there are two or people having a glass of champagne around this time. that is the busiest i have seen it since the infinium ipo. that is a lot of people on the front for stock exchange. dwane is still with us, the strategist from allianz global investors. it is a tough time to ipo. we have a lot of ipo's going out today, but there does not seem to be a poor appetite for ipo's right now, regardless of the market volatility we've seen. is that a good sign?

it's important to point out that the question, particularly about foreign banks, deutsche bank, banks that have been troubled and troubling, will be mostly deregulated under this bill. that's not really my question, but i want to point out that in spite of his chair of the federal reserve deposit general satisfaction with this bill, there have been serious questions raised against it and about it by former fed chair volker, former deputy treasury secretary blue raskin, by former , by chair sheila bair antonio weiss and the former deputy governor of the bank of england. it's important to note that it is not all, it is not all candy and roses, here. let me talk about a couple of other things. unemployment rates that are steady, as you know, have been slow to approve. a her confirmation hearing you mentioned that labor force participation for prime age workers was lagging. two questions related to that, do you think it's possible to achieve further improvement among workers that have been left behind without causing higher inflation? and would you commit to looking at all the data and co

a lot of people worried about deutsche bank running against the wall two years ago.t he stabilized, dealt with legal issues, bringing down cost, he is bringing up capital levels, those are all good things, but you do have the issue of, can he return this big bank to growth? ,> major moves at deutsche bank sources saying germany's biggest lender could lead to deeper cuts in the trading businesses. what they are looking at if they are drilling down into the business to see where we are competitive? that is why one of the focus the u.s. where they are facing very strong u.s. rivals. do they still have the capability to compete with them? do we need, can we invest money to touch up with them, or is it simply too late and we have to scale back? the latest poll shows that the prime minister's approval rating has fallen 11 percentage points to 32.6% over the past month. his disapproval rating has risen by 13 points to just shy of 55%. it's a scale over the sale of -- it is a scandal over the sale of public land. >> you are talking about sagawa, he is a former finance admini

mark: and it is not a deutsche bank thing is it? y course. >> he said march was all over the place and february was a strange month when volatility spiked. the investment banks including deutsche bank benefited from trading units from increased volatility, so it is a bit weird that they said there are headwinds and we saw strong backlash to those words. it isn't quite happening at the pace they would like to see. mark: the communication at deutsche, you have been covering for a long time. how is it going down right now? >> the cfo comments were made on a webcast conference. they had to watch via webcast and it was difficult. i do think it could have been possible to make sure the market with have gotten more information and more timely. mark: he seems to add pressure to himself. he is now in phase three of the turnaround? the phase is going around forever. investors are asking when is phase three over and will there be a phase for? ur? he is under a lot of pressure. mark: a big day tomorrow and we shall see how that goes off. let's g

deutsche bank will have the ipo of its asset management unit. it will fire 6000 bankers. to cut bonuses again for top executives. we will discuss that all at the open in four minutes. this is bloomberg. ♪ guy: the euro-dollar bid this morning was trading 1.3338. school scandal, the applications of how far that could go. watch the end. this could be a mover over the next few days, the yen. that is what the nikkei is doing, up by 1.65%. $65.35 right now. the opec story is in focu s now. blocks jobsl the report -- it was a goldilocks jobs report. let's look at the fair values in toope, because they want talk about how well the dax is scheduled to do this morning, up by 1%. watch the energy sector. that will be the utility sector and that will be fascinating. .6% to 0.8%d up this morning. performeduld under this morning. london is only expected to be up 0.3% to 0.4%. to 0.7%. up by 0.6% the dax, i believe for. nothing much is happening. it takes a while for the dax to open while things are happening in the german market. the cac is up by 0.4%. let's take a look at what is hap

helman use of apps the head of deutsche bank got a call from the chancellor's office adenauer sold over to dodge a bank for a third of its value it was a good deal for the bank just as it had been when it was first launched. thanks to our now and deutsche bank are no how can became the captain of the new film that in one nine hundred fifty six once again for the big old name a ship meant to serve the german government and deutsche bank just like in the old days you. opened new cinema and he moved too far from darwin hundreds to a dozen off where he built up a new headquarters he distributed and produced movies. one group that's usually don't. go. at the time of them pick up till i think that's ridiculous played the son of luisa ovation for his first post-war film they were the new for dream team. he said. there has been. the capable business woman widow and mother of three sons overcomes all the hardships. of this kind in its name and on that. you know her life and then she even finds new love oh yeah oh. yeah he can go. get your house. and up i've got a son that he. had enough money th

deutsche bank is looking to replace ceo john cryan. ntinued clashes between him and the bank chairman were reportedly behind the move. that as deutsche struggles to get back in the black. but who would want to replace john cryan? the top job is increasingly seen as poisoned. reporter: he took over in 2015, tossed with turning the bank's fortunes around. now a report suggests john cryan's days at deutsche bank could be numbered. speculation about a possible successor is already rife. >> we are hearing the lender has apparently asked the vice chairman of goldman sachs to take over, which is interesting because also the new state secretary and the german finance ministry is a former goldman sachs employee but it seems he is not interested. one thing it is sure, it is going to be a very challenging job. reporter: among the many challenges, reversing three consecutive years of losses. some of which could be attributed to the billions of dollars it has had to pay out as a result of scandals related to mortgage fraud and price manipulation. an

let's start with deutsche bank.story because for many years, theycompensation by 80% as sought to appease regulators. this year, not so much. jason: it is hard to totally determine how much this says about the health of deutsche bankversus how deutsche may need to continue to be more competitive. they had a huge number of people the. lisa: you are being diplomatic. they have been posting disappointing results. this is not an indication of the health of the company. jason: would you say it is about keeping people? lisa: that is what analysts suggest. david: last year they cut didn't dout then they it. jason: the argument could be that they are not delivering as a company and you are not getting paid. lisa: there is a big question here and that is at a time of increasing technical platforms and automation, how much do you need to pay for people to have traffic in the personal relationships? jason: the other thing that is pointed out in this story is that john himself had potential pay of 38 point $2 million. he actual

what the chart looks at is that it shows you the total return of deutsche bank stock versus bonds anddholders, not shareholders. tom: yes. there?e: tom. you tom: i'm looking at the equity and it is above 11 euros be -- per share. francine: john cryan struggling to maintain investor banking after failing to bring back co ntrolled growth. planned aas now two-day trip to north korea. this after it was confirmed that xi jinping met kim jong-un in china. it was his first then visit outside his country since taking power in 2011. the u.s. said to be considering a crackdown on chinese investments in technology, invoked inlaw to be emergencies. chinese companies would be banned from investing in semiconductors. chance for donald trump to punish china for what calledr what he violations of intellectual property rights. to coordinate a nikkei strategy. italy, for sending is said to be open to his party joining a coalition -- be rlusconi is said to open his party to join a center-right coalition. dayal news 24 hours a powered by more than 2700 journalists and analysts in more than 120 countries.

theyow one of the lenders did use was deutsche bank at a time when other banks were not willing to lend to them. paynow deutsche bank had to hundreds of millions in fines for laundering billions of dollars of russian money. we know the president's sons have talked about getting money from russia. and we know from other witnesses that there are money laundering in the trump properties as well as an indictment that showed and awas organized crime money-laundering ring operating a outage -- operating out of trump tower one time. i hope this special counsel has been given the latitude to investigate. but most significantly, if evidence of money laundering his the russians have with the president, we need to know. >> can you talk about the process of your report? what do you think the timeline is? are you going to have the committee vote on it? representative schiff: we have been working all along to formilate the facts in a that can be incorporated into a report. it had been our hope for some time that even if there were areas of disagreement with the majority, that we could at least come t

>> major moves at deutsche bank. urces say germany's biggest lender is conducting a fresh review of its investment bank that could lead to deeper cuts across the trading businesses. >> what they are looking at is drilling down into the business to see where are we still competitive? that's why one of the focus points is the u.s. where they are facing very strong u.s. rivals. the question is do they still have the capability to compete with them? do we need to -- can we invest money to catch up with them, or is it simply too late? are we going to scale back? shows that poll, prime minister shinzo abe pproval rating has fallen 11.7 percentage points to 32.6% over the past month. his disapproval rating has risen by 13 points to just shy of 55%. behind this is scandal over the sale of public land at a fraction of its value to a national school with links to is wife. a the former finance ministry official who rose to the head of the national tax office. he oversaw this questionable land deal that documents were forged. tho

we got news on deutsche bank that relates to whether or not the bank has, indeed, been searching for a successor to the current ceo. a source tells me me the board approached richard nadi, head of goldman sachs international, a vice chair at the bank, which is a coveted rank that comes below that of ceo, then president, then vice chair. and that conversation has taken place and that richard nadi of goldman sachs is not interested in the role. of course, there's been stories in the last day or so the as to whether they're preparing a successor for john cryan someone close to the bank saying the issues they have at the bank are ones of execution recently, not ones of strategy distancing from the idea any conversations are going on deutsche bank down 1.4% today. it's down about 13.5% over the course of the last two weeks alone. so, clearly, the pace against -- >> it's not pretty. >> yeah -- and against the last year-to-date down 26%. since john cryan took over july 2015, down some 48%. when banks elsewhere have been doing relatively well. they did make a full-year loss, partly because o

but the ushers are deutsche bank are trading.hange at the top. >> well, the market has reacted well to this. this comes from a newspaper reported in the times when it does come with the evidence, the report that various other bankers have been approached but nobody has expected this. no uncertainties yet with respect to this. lauren: we are always curious about reaction to the move to buyout the stake in the health care joint venture may have for a reported $13 million. >> of course it's only been a week or so when? has stepped away from another deal with pfizer. there would be a much bigger deal, 20 u.s. billion dollars. it defines what they're trying to do what we need this already. this is to really concentrate on the consumer health. toothpaste, tooth care, that sort of area. cheryl: real quick, jane, what has been happening with the markets? the big relief rally in asia overnight. that is affecting some of the currencies you watch. >> it really is. we've had this paling back and that is loved the yen has come up as a safe ha

on monday, german lender deutsche bank embarq of the latest phase of its turnaround plan. >> deutschek has formally announced its intention to sell shares in its active management unit. the ipo will take place at the earliest available window. the move kicks off a four-week run into an ipo. it will sell existing shares held indirectly by deutsche bank. it doesn't plan to issue new ones. how critical is this new ipo? >> it is not critical for the capital buffer, they have enough capital parent however it is critical to show to investors and the bank itself and the management board that he can pull up the strategy he announced a year ago. he's had setbacks. he wanted to grow revenue and that has not worked out as planned. this ipo management unit ahead of schedule. it is now happening in 12 months. that will be a big show that he will be able to lead the bank. -- have the ability to lead the bank. >> paypal made it a video on capital -- made its debut on capitol hill, signaling the central bank may review the rate hike half. path. >> each member of the fomc will be writing down new mone

deutsche bank is making cuts to its trading business, currently trading up 0.4%. an is trying to make these changes and turn the company around, and be profitable, as rumors swirled the bank is trying to replace him. has just reported its year end estimates. it has cut those. its stock is down about 5.1%. it would be its worst day if it closes on this level since 2013. it is awaiting profitability in north america. a previous high estimate of 4%. has been downgraded from a neutral. llianz hasy says a upside but is not as attractive as its peers. it is trading down about 0.4%. estimates lower buybacks in cash payments. at one point this morning, allianz is one of the worst-performing stocks. thank you for showing us those stocks. some of the events you will be watching today, gdp reading from the u.k. at 9:30 a.m. at 6:00 p.m. baker hughes rig countits latest data. there he interested to see how that pushes the oil price. it is below 65 on wti. there is a speech about the u.s. economic outlook. no doubt it will be positive because they normally don't talk down the u

do you see any sign the deutsche bank and the other banks to have a better 2018?--, we are doing much better. equity are way above cost of capital already benefiting does the ecb starts normalize rates. as a result, there is a high likelihood that 2018 in 19 earnings will be higher. deutsche bank's a different position. because itenalty box and i thinkmanaged now the task is upon john cryan to pick up the mess. when you have 15 to 20 years of theanagement, to clear up -- it takes longer. i don't deutsche bank will post better numbers. -- cine: >> it doesn't it does not. morale makes tension higher. a visa be as happy that will a will share price. when the shareholder perspective, white. think for the update. this bloomberg. ♪ . . francine: good morning, everyone. this is "bloomberg surveillance ." francine lacqua in rome and tom in new york. speaking in milan, and center-right coalition is in position to do italy. he will work with the center-right, and he says he is not available for the coalition. let's get back to davide serra from algebris. is it a berlusconi-

the trader christian batar who hails from france will be sentenced in the next two months and deutsche bank for their part in the role paid two point five billion dollars in fines in two thousand and fifteen over the scandal which has seen some of the biggest banks in inner dealer brokers in the world pay about nine billion dollars in fines and penalties to. the people of the us territory a proto rico continue to suffer and struggle to rebuild but their debt is generating actual profits for some investors the wall street journal reports that an index of puerto rican municipal bonds has yielded a fourteen percent return this year the highest for any of the more than three hundred indexes tracked by s. and p. dow jones indices puerto rico has seventy billion dollars of debt to manage but their situation has improved recently at least a little puerto rico disclosed a six point eight billion dollars in previously unknown bank deposits in december and in january economic estimates of damage from hurricane irma and maria were actually down revised and the us congress to approve a twelve point eig